As an independent dealer, managing your money well is important to keep your business thriving and growing. Having enough cash allows you to stock up on vehicles, grow your team and expand your business. But in an industry where you often need to spend money to make money, it can sometimes be hard to build up extra cash.
That’s where AFC’s Principal Pass is here to help. As an enhancement to your existing AFC floorplan, it gives you more control over your money. Principal Pass allows you the option to defer your principal payments on eligible units at the time of curtailment. For a small fee, you can delay these payments and free up cash to invest in other areas of your business.
Here are three key indicators that Principal Pass could be an ideal solution for your dealership:
1. You Need to Improve your Cash Flow
Businesses sometimes experience times when cash might be a bit low, or you need money right away for important things, like getting vehicles ready to sell. If your dealership is going through a period where you need to manage your cash carefully, Principal Pass may be the solution for you. The ability to delay main payments on eligible units frees up more cash available for your immediate needs.
2. Your Sales Change with the Seasons
Do your sales go up and down depending on the time of year? If your business is affected by seasons, Principal Pass can help provide you with greater financial freedom. This means you can acquire vehicles during the “off-season” when they might be a better deal and hold onto them without making a big payment until demand increases. This strategy can help you stock your lot and increase profits when demand is high.
3. You Need Payment Relief When Multiple Units Are Due at the Same Time
For a lot of independent dealers, there can be significant stress that comes with having multiple vehicle payments become due simultaneously. Principal Pass can help provide crucial payment relief in these situations, helping you preserve cash flow and alleviate the pressure of simultaneous unit payments.
How Principal Pass Works
It’s very easy to use! When a curtailment payment is due on an eligible vehicle, you simply log into your AFCDealer® account and choose to use Principal Pass for that car. You will still pay the interest and fees that are due, but the partial principal payment usually due when making a curtailment will be replaced by the Principal Pass fee allowing you to hold on to those funds until you sell the vehicle or until the next payment date, whichever comes first.
If you think Principal Pass sounds like a good fit, or if you have any questions, you can reach out to your local AFC branch today. You can also apply online for floorplan financing from AFC.
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? Call us at 1-888-335-6675, and we’ll be happy to assist you.
* Disclaimer: Descriptions of AFC floorplans, including Principal Pass, 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. “Principal Pass requires a written amendment to AFC’s contract. AFC” refers to Automotive Finance Corporation, Automotive Finance Canada Inc., and AFC Cal, LLC in their respective jurisdictions
