As an independent dealer, you know that steady cash flow keeps your business moving forward. It powers every part of your operation, from purchasing inventory and covering reconditioning costs to keeping your lot stocked and your team ready to sell. When cash flow is consistent, you can plan ahead, take advantage of new opportunities and grow with confidence.
Here are three best practices to help you strengthen your dealership’s financial foundation and sharpen your auto dealer cash flow strategies — plus show how AFC floorplan financing can support your goals along the way.
1. Keep Inventory Moving
The longer vehicles sit, the more your cash is tied up. Prioritize quick-turning units and monitor your days-to-turn closely. Focus on vehicles that move well in your market, and adjust purchasing decisions based on performance.
Using floorplan financing can also help free up your working capital. Instead of paying cash up front, you can use your floor plan to acquire inventory while keeping liquidity available for other expenses — like marketing or reconditioning — that help speed up sales.
2. Plan Ahead with a Cash Flow Forecast
Knowing where your money is going is just as important as knowing how much is coming in. A simple forecast that tracks inflows and outflows can help you anticipate challenges before they happen. Review it regularly to stay aligned with seasonal shifts, auction schedules and operational costs.
Dealers who plan ahead can make informed decisions — such as when to buy, when to hold and when to slow down, without putting unnecessary strain on their finances.
3. Use Financing Strategically
Smart financing isn’t just about access to capital, it’s about flexibility. A well-managed floorplan allows you to invest in the right vehicles without restricting day-to-day cash flow.
AFC’s floorplan financing solutions are designed to give independent auto dealers more control over their cash by funding purchases at approved auctions, so you can focus on turning inventory and generating profit. For many dealers, that balance of flexibility and control is key to long-term stability.
Building a Stronger Cash Flow Strategy
Managing cash flow is about staying proactive, not reactive. By moving inventory efficiently, forecasting your finances and using financing tools wisely, you can create a stronger, more resilient business.
With thoughtful planning — and support from providers like AFC — your dealership can build the financial confidence to grow, adapt and succeed in any market.
Ready to strengthen your dealership’s cash flow?
Keep your business moving with flexible financing options designed for independent dealers. From standard floorplans to specialized lines of credit, AFC offers solutions that can help you buy what you need, when you need it — so you can focus on growing with confidence.
Have Questions? We’re Here to Help!
If you have any questions about the application process or how to get started, feel free to visit our Contact Us page.
Prefer to speak with someone directly? Contact us at bdccorporate@autofinance.com or 1-888-335-6675, and we’ll be happy to assist you.*
* 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
