When deciding on what floorplan term length is best for you, it’s important to remember that every dealer has their own unique set of business needs that will determine the right floorplan term length for their dealership. However, there are indicators that make a short-term floorplan — typically under 90 days — a better option for your business. We’re here to highlight three signs that might indicate that a short-term floorplan may be more beneficial for your business needs.
Discover three indicators that a long-term floorplan may be suitable for your business needs!
1. You like to Keep Your Inventory Options Fresh
If you’re a dealer that likes to keep your inventory options fresh, a short-term floorplan may be the right option for you! With short-term floorplan terms, you have the flexibility to quickly move inventory and expand your buying power. Increased flexibility provides you with an opportunity to stock up on in-demand inventory and accelerate your growth.
2. Your Inventory Moves Quickly
If you anticipate quick turn times, a short-term floorplan may be ideal for your business! For fast-moving markets, a short-term floorplan is an excellent solution for low-value inventory or high-value units with rapid sales cycles.
AFC also offers a floorplan with a flat daily fee called the Daily Tab. With this plan, you pay a flat fee for only the days that your vehicles are on the floorplan. If your cars consistently sell in days, why pay for weeks of financing? Daily Tab serves as a flexible, pay-as-you-go option that is perfect for dealers whose inventory moves quickly.
3. You’re a Dealer Who Typically Purchases Low-Value Inventory
Do you frequently purchase low-value inventory? A short-term floorplan is likely the best option for your dealership. Traditional long-term floorplans may not be suitable for dealers with lower-cost inventory, as carrying costs and interest can be higher, and the profit often doesn’t justify the wait. A short-term floorplan helps preserve your dealership’s capital and improves cash flow.
AFC’s Daily Tab floorplan also offers a cost-effective alternative to traditional floorplans. This is particularly beneficial if you’re a dealer managing low-value inventory, because Daily Tab’s minimal daily fees won’t cut into your margins.
Ready to Apply?
Does a short-term floorplan align with your business needs? AFC offers flexible financing solutions designed to support you. Apply today!
Want to Learn More? 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. Simply fill out the short form, and a member of our team will reach out to you shortly.
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. All applications are subject to approval by AFC and the 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
