How Floorplan Financing Helps Auto Dealers Fund Inventory
In the automotive wholesale business, inventory is everything. Buying the right vehicles, at the right price, and selling them quickly is what can keep your dealership moving forward.
But in today’s market, where inventory costs, transport fees and operating expenses change often, relying only on cash to stock your lot can limit how much you buy and put pressure on your cash flow.
At OPENLANE, we understand the pressure auto dealers face. That’s why floorplan financing is one of the smartest ways to scale your inventory while keeping your working capital flexible.
How floorplan financing works for auto dealers
Floorplan financing is a line of credit made specifically for car dealerships to purchase inventory. Rather than using your own cash, you use this credit line to buy vehicles, with the cars themselves acting as collateral for the loan.
The process is simple:
- Use the credit line to purchase vehicles.
- Sell the inventory – including any payments due before the vehicle is sold.
- Pay back what you borrowed – plus fees and interest – to free up credit for new inventory.
Benefits of Floorplan Financing for Your Dealership
Using floorplan financing for your OPENLANE purchases offers several key advantages:
Protect your cash flow
Keep more cash on hand for marketing, reconditioning, staffing or daily operations.
Increase buying power
Buy more vehicles without waiting on cash, so you can move quickly when the right inventory becomes available.
Flexible Financing
Pay interest only on what you use and work with a flexible floorplan provider that can adjust terms to your dealership’s needs.
Stay Competitive
A wider selection of inventory helps you stand out and close deals faster.
Bottom line: floorplan financing helps you spend less time worrying about cash and more time on selling vehicles and growing your business.
How do I use floorplan financing on OPENLANE?
Dealer floorplans can cover many of the direct costs associated with purchasing on OPENLANE, including*:
- Vehicle purchase price
- Applicable auction fees and taxes
- Transportation costing when using OPENLANE Standard or Expedited Transport services
To use floorplan financing on OPENLANE, you must complete the Payment Authorization Form. Once your floorplan account is approved and set up, select floorplan as your preferred payment method.
AFC Floorplan Financing for OPENLANE Dealers*
When you chose AFC — OPENLANE’s sister company – as your floorplan financing provider, you gain access to tools and support built specifically for today’s dealers:
More Purchasing Power:
Transparent pricing with no hidden fees gives you greater control over your inventory strategy.
Manage your account anytime:
With the AFCDealerⓇ platform, you can view balances, make payments and manage your floorplan anywhere with 24/7 access.
Integrated checkout:
Floor eligible OPENLANE purchases directly to your AFC account during checkout, with no extra steps.
Customized Terms:
A dedicated AFC team works with you to tailor financing terms to your dealership’s unique needs.
Floor your OPENLANE Inventory with AFC
With nationwide inventory and straightforward, integrated financing, OPENLANE and AFC work together to help dealers buy smarter and grow faster. Click here to apply for floorplan financing with AFC.
* Disclaimer: Descriptions of floorplans, including 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.