What is floorplan insurance?
Allows you to effectively compete with the manufacturers insurance programs by offering your dealer a product to insure their vehicle inventory. The inventory can include cars, trucks, recreational vehicles, motorcycles, equipment, and manufactured housing dealers.
What does floor plan mean in car dealerships?
Floor planning is a form of retailer financing for large ticket items displayed on showroom floors or lots. … Automobile dealerships utilize floor plan financing to run their new and used car businesses. Floor planning is a type of inventory financing.
Is floor plan financing debt?
What is floor plan financing? Floor plan financing is a revolving line of credit that allows the borrower to obtain financing for retail goods. … The dealer then repays that debt as they sell their inventory and borrows against the line of credit to add new inventory.
How do I get a dealer floor plan?
You may obtain a dealer floor plan from a bank or there are many dealer floor plan providers listed by clicking here. You may also go to Google, Bing, or Yahoo and type in “dealer floor plan providers”. You will then find numerous companies that will provide financing for your inventory.
How does floor stock financing work?
Floor stocking involves the financing of vehicle stocks from appointed dealers upon presentation of the Sola of Exchange. … Upon redemption of the Sola, the financing document will be released to the dealer to facilitate the registration of the vehicle with the Road and Transport Department in the name of the hirer.
What is dummy flooring?
Basically, employees would cross-deposit check across multiple banks. … These employees then used check-kiting to cover yet another fraudulent practice called “dummy-flooring.” This involves employees requesting loans to repurchase cars they already sold, and then used the money to cover other expenses.
Do dealerships finance their inventory?
Local dealerships purchase their inventories through financing called “floor plan lending.” Here’s how it works: Local dealerships have a better sense than anyone what vehicles will sell best in their markets – cars or trucks, SUV’s or compacts, sports cars, luxury cars or more affordable models.