Car Dealer Floor Plan Financing
Floor plan & inventory financing for dealerships: Lines of credit that fund a dealer's wholesale and auction vehicle purchases, repaid as units retail.
Floor plan financing is a revolving line against inventory: the lender advances most or all of each vehicle's cost, holds a security interest, and is repaid vehicle by vehicle as units sell, usually within a few days of the sale.
How to choose car dealer floor plan financing
Rates are almost always variable, often priced over a benchmark such as SOFR. The costs that surprise dealers sit outside the rate: curtailments, mandatory principal paydowns as a unit ages (a schedule such as 10 percent a month on used units beginning in the fourth month is typical in some programs), audit fees, facility fees and required insurance.
Related searches: floor plan & inventory financing · floor plan financing
What to check before you buy
Compare lenders on a total cost model for your own turn. Get the curtailment schedule by age and vehicle type.
Find out how often audits happen and whether they are physical. Get the full fee schedule, the time allowed to pay off after a sale, and the auctions and sources the lender will fund.
Programs tied to an auction, such as NextGear Capital's with Manheim, may add payment deferments on units bought there. Bank programs such as Ally's fund new and used inventory with daily electronic settlement.
Then model a slow month. What do curtailments and fees cost when half your used units age past 60 days?
Two more questions protect the store. First, what happens when a unit sells and the payoff is late?
Selling a financed vehicle without repaying the lender in the agreed window is called being sold out of trust, and it can trigger default remedies. Ask for the exact remittance window and the penalty for missing it.
Ask whether daily electronic settlement is offered. Second, how are vehicles that did not come from an auction funded?
Trade-ins, private purchases and dealer trades often need a different advance rate, an inspection or a title check. Find out how long title release takes at payoff.
A customer waiting on a title is a delivery problem.
| Workflow group | Finance & office |
|---|---|
| Companies mapped | 8 |
| Product records mapped | 4 |
| Verified profiles | 1 |
Questions to put to every car dealer floor plan financing vendor
- What is the initial and renewal term?
- What are implementation and offboarding fees?
- What data, hardware or OEM dependencies apply?
Car Dealer Floor Plan Financing companies
Alphabetical; not ranked. Read the evidence methodology →
Ally Financial
Bank and auto finance company whose dealer services cover F&I and protection products, dealer rewards, training,…
Cinch
Cinch Auto Finance, an indirect auto lender focused on auto loans with dealer pages for underwriting,…
CUDL
Indirect auto lending network from Origence connecting credit unions and dealers, with credit application, digital contracting…
Lendbuzz
AI-based auto lender that finances buyers through franchise and independent dealers, private-party purchases and refinancing, with…
NextGear Capital
Cox Automotive's floor plan financing arm, providing lines of credit for independent dealers to acquire wholesale…
OneMain Auto
Consumer lender offering personal loans including auto purchase and refinance loans through branches and online. The…
OPENLANE
Digital and physical wholesale marketplaces, inspections and floorplan services.
Westlake Financial
Auto finance company offering indirect auto financing to dealers plus flooring, GAP, remarketing, a dealer lead…