Floor Plan Financing Rates

If your holding cost per day per unit is 44 63 and your turn time is 60 days you will spend 2677 of your profit holding on to a non selling car.

Floor plan financing rates. New and used vehicle floor plan financing at competitive rates and terms focused on meeting the needs of new car franchised dealerships. Floor plan statements and inventory information available online. Let s say you make a profit of 3 000 per car sold. These floor plan finance formulas incorporated with a dealer s turn time can help to make or break a dealership s profitability.

If this dealer s holding cost per day per unit is 44 63 and their turn time to sell a car is 60 days they will spend 2677 of their profit holding on. Quick flip first 10 days 35 00 on vehicles 7500 or below. 3 amount of the line. 7501 and above 35 or rate whichever is higher 75 minimum charge on all vehicles on the 11th day.

Floor plan connections to provide 24 7 online access to your floor plan account advance rates for new vehicles at 100 of invoice used at 80 of clean black book cash management account with the ability to utilize excess cash to reduce floorplan interest expense. However not all inventory finance companies offer retail and dealership wholesale financing options. Variety of floor plan structures and interest rate options to meet your needs and reduce your interest expense. Floor plan finance options are popular within the automotive industry.

Floor plan financing is also done for large appliances mobile homes and boats among other items and these products are usually sold to consumers with a financing contract. The fed has forecast it will raise rates twice more this year and three times in 2019. Let s say a dealer makes a profit of 3000 per car sold. Our relationship with the manufacturer affords komatsu financial the opportunity to offer aggressive below market subsidized interest rates on many models resulting in lower monthly payments and reduced ownership costs.

Flexible terms and payment plans. The dealer then receives payment hopefully including a profit and remits the balance to the lender who in turn releases the title to the car to the new purchaser. After 8 years a floorplan flip nada s senior economist patrick manzi expects floorplan to become an. Like any other financing facility the line must fit the financing needs of the borrower with some restraints to avoid excessive leveraging or over extension.

These floor plan finance formulas incorporated with your turn time can help to make or break your dealership s profitability. While some lenders are unable to properly serve independent dealers nextgear capital has proudly served the independent dealer market for over ten years our floor plan financing options allow dealers to finance nearly any.