How Floorplan Financing Can Boost Your Car Dealership’s Cash Flow
2 mins
As a car dealer, you know that cash is king, and a positive cash flow gives your dealership financial flexibility. Having your capital tied up in on-lot inventory limits your ability to buy new vehicles. Having liquidity is important for keeping operations running smoothly and letting you take advantage of opportunities like purchasing in-demand vehicles.
Floorplan financing is a flexible solution that can help you create liquidity and curate a diverse inventory of used cars that your customers will love. Not sure whether to use cash or credit for your next purchase? Check out our blog on Cash vs Credit: How to Know What is Best for Your Dealership.
The Power of a Dealer Line of Credit
A dealer line of credit gives your dealership access to funds as needed – instead of a single lump sum payment – which allows you to stock your lot without depleting your own cash reserves. This keeps cash in your account for your other business needs until the payoff date or the vehicle is sold.
Having quick access to funds lets you buy used car inventory as soon as it becomes available, ensuring that you can meet your customers’ needs. Smart financial strategies maximize your purchasing power, helping you create a diverse inventory that drives sales and boosts profitability.
Let’s explore how a partnership with a floorplan provider like AFC can bring these benefits to your dealership, especially when you’re buying inventory from platforms like OPENLANE.
How AFC Supports your OPENLANEⓇ Purchases
Ready to streamline your dealership’s operations? Our sister company AFC is built to help. When you’re buying inventory from OPENLANE, AFC provides the financing you need to keep your lot stocked, but they do more than that. AFC can also take care of the time-consuming paperwork with services like title management and lien pay. This means less time shuffling through documents and more time selling to your customers! And with their user-friendly AFC DealerⓇ platform, you can easily manage your funds online at any time, day or night. If you’re interested in getting started financing your inventory with AFC, visit: www.openlane.com/afc today.
* Disclaimer: 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