How Can I Fund My Inventory With Floorplan Financing?
3 mins
Few factors are as essential to your dealership’s success as inventory — where you source it, what you pay for it, and how well you sell and move it off your lot. And in a competitive industry like used car sales, it can be the differentiating factor between you and your competition. Suffice it to say — inventory is your everything.
At OPENLANE, we don’t think that means it should cost you everything. If you’re solely relying on your own cash to acquire inventory, you might be missing out. Not only does it limit your purchasing power and force you to chase revenue, it can also quickly eat away even the healthiest of cash flows.
Thankfully, there’s a better way. With floorplan financing — sometimes called floorplanning — you can fund your dealership’s on-lot inventory without borrowing from your on-hand cash reserves. And since OPENLANE is all about making wholesale easy with an end-to-end digital marketplace, you can rest assured that we also have a premier floorplan solution from AFC.
How does floorplan financing work?
Floorplan financing for automotive dealers works by providing a revolving line of credit to purchase vehicles for their inventory. When a dealer acquires vehicles, the lender pays the manufacturer or auction house directly, and the vehicles serve as collateral for the loan. As the dealer sells each vehicle, they repay the lender, usually within a specific time frame. The revolving line of credit can give your dealership access to the capital it needs.
What are the benefits of floorplan financing?
Floorplan financing offers a multitude of advantages for car dealerships and dealer purchases.
- Improved Cash Flow. Floorplan financing allows you to purchase inventory without tying up your working capital. This frees up cash that can be used for marketing, operations, or other investments.
- Increased Inventory. With access to additional capital, you can stock a wider variety of vehicles, attracting more customers and increasing your sales potential.
- Flexibility. Floorplan financing is designed to adapt to the ebb and flow of your business. You only pay interest and fees on the amount you borrow, and with the right partner, you can adjust not only your credit line but also your terms as your needs change.
- Competitive Advantage. By offering a larger selection of vehicles, you can differentiate yourself from competitors and attract a broader customer base.
Meet AFC, OPENLANE’s Preferred Floorplan
An OPENLANE company, AFC has been a pioneer in the floorplan industry since 1987, and has a deep understanding of the unique challenges that independent dealers face. AFC offers unique and customized dealer floorplan financing options to help you grow your inventory and increase your bottom line.
Whether you’re an independent auto dealer looking for floorplan financing companies or a large dealership seeking additional floorplan finance options, AFC has you covered.
When you choose AFC as your floorplan financing lender, you’ll enjoy:
- Unrestricted cash flow. Transparent pricing and no hidden fees mean greater freedom for you
- Integrated online payment. Seamlessly floor OPENLANE purchases at checkout to your AFC account
- Your floorplan at your fingertips. With the AFCDealer® platform you can make payments and manage your account anytime, anywhere
With extensive nationwide inventory and simple, transparent financing, OPENLANE and AFC make the perfect duo for buyers and sellers.
Of course, OPENLANE accepts most major floorplan finance companies. If you work with a floorplan company that is not currently supported by OPENLANE, you can contact your OPENLANE representative to request an addition, or simply reach out to customer support.
Click here to add your floorplan as a preferred payment method on OPENLANE, or click here to apply for floorplan financing from AFC.