How Do I Increase my Dealership’s Buying Power?
Are you a dealer looking for ways to afford more inventory to fill your lot? We know that having enough cash on hand to buy vehicles can be a challenge. Fortunately, there’s a solution that allows you to buy inventory and grow your business without immediate cash on hand. That solution is called floorplan financing.
What is floorplan financing?*
Floorplan financing is a revolving line of credit that dealers can use to buy more inventory. The vehicle itself is used as collateral and once the vehicle is sold you repay the borrowed amount. Just like with any type of loan there are other important terms, including interest and fees that are owed in addition to the principal amount.
How can a dealer floorplan help you?
A floorplan can help your dealership grow by giving you more buying power so you can add more inventory to stock your lot. This can help dealers from having to chase sales revenue in order to pay for the cost of inventory purchases. Generating sales revenue is still crucial for your dealership, and using a floorplan can allow you to afford more vehicles, ultimately boosting your sales revenue.
On top of giving you more buying power, it can also free up your available cash flow, allowing you to invest in other areas of the business that drive growth. Floorplan financing can give you a competitive advantage by providing you with the necessary capital to become successful.
Can I use floorplan financing on OPENLANE?
Yes! OPENLANE allows dealers to use floorplan financing to fund their purchases. If you already have a floorplan provider, you’ll need to submit this Payment Method Authorization Form. Once your floorplan account is set up and approved, make sure to set your floorplan as your preferred payment method.
If you don’t have a floorplan provider, check out OPENLANE’s preferred partner, AFC** and read this blog to learn more. As an OPENLANE sister company, AFC offers customizable floorplan financing solutions to help fit the unique needs of your dealership. Using AFC will allow you to seamlessly integrate your OPENLANE purchases into your AFC checkout. If AFC seems like a good choice for you, start applying for your next floorplan here.
Stock your lot up today!
Increasing your buying power through a floorplan is the first step in growing your dealership. The next step is leveraging OPENLANE Canada’s marketplace to discover the vehicles your customers want.
Sign up today to see how OPENLANE can help you find the perfect vehicles for your dealership.
* Descriptions of AFC floorplans are for illustrative purposes only. Terms of AFC floorplan financing are subject to a final written agreement acceptable with AFC. AFC does not guarantee any results for floorplan financing and examples are for illustrative purposes only. Dealers should consult their own advisors to make independent business decisions regarding floorplan financing.
** “AFC” refers to Automotive Finance Corporation, Automotive Finance Canada Inc., and AFC Cal, LLC in their respective jurisdictions. All California transactions are through AFC Cal, LLC. California loans will be made pursuant to Department of Business Oversight California Finance Lenders License. Canadian transactions are through Automotive Finance Canada Inc.