What Is A Dealer Floor Plan. On the 180th day final payment is due. Think of a floor plan as the credit plan or revolving line of credit for Auto Dealers specifically for purchasing vehicle inventory.
Owning and operating a profitable dealership with efficient cash flow all comes down to balancing that cash flow with current inventory. A dealer floor plan is a loan for your vehicle inventory. These loans are made against a specific piece of collateral ie.
To insure a dealerships inventory appropriately you need to understand the four types of ownership arrangement and how they affect the dealers insurance requirements.
The dealer then repays that debt as they sell their inventory and borrows against the line of credit to add new inventory. A dealer floor plan is a loan for your vehicle inventory. The dealer then repays that debt as they sell their inventory and borrows against the line of credit to add new inventory. 3500 on vehicles 7500 or below.
