With inventory remaining tight in 2023, dealers may be looking to extend their credit to and look at getting a floor plan to remain competitive.
In the April issue of UCD, we look at floor planning and get practical advice on getting started.
“Sourcing inventory in a tight market requires independent dealers to have a plan in place to make smart buying and pricing decisions,” said Scott Maybee, president of NextGear Capital. “Using a flexible floor planning strategy can make a dealer’s inventory work for them and stay competitive in any environment.”
NextGear is the largest inventory finance company in North America, providing lines of credit for dealers at more than 1,000 auctions throughout the nation.
Floor plan lending differs from borrowing from traditional financial institutions. Floor plans often have more flexible terms for dealers to meet needs for types of vehicles or payments. Floor plan lenders specialize in lending to dealerships and understand the capital needs for different markets.
“Dealers need terms that fit their needs. From flexible pricing and eliminating fees, it allows them to keep more money in their dealership,” Maybee said.
Terms will be dictated by performance of the dealership in turning vehicles.
Also in the April issue, find our Dealer Spotlight story on Melissa McCown of Amigo Motors in Houston. In the two years since the death of her husband Patrick, she and Mi Amigos in Houston had persevered through an embezzlement, break-in and even a tornado that wiped out a planned expanded collections department. But after nearly reaching her breaking point, she knew she needed to keep going. And meeting with peers, she received something more valuable than the list of items to work on for her dealership in that initial Dallas visit.
The April issue, which includes much more, is available here.
