ACV facts & figures
For many car dealers, floorplan financing marks a turning point. It can unlock more inventory opportunities, preserve working capital, and help a dealership operate at a larger scale. But it also introduces new responsibilities that require planning and discipline. Before flooring your first vehicle, it’s worth stepping back to evaluate whether your dealership is truly ready.
Understanding Dealership’s Floorplan Financing Eligibility
Each floorplan provider has qualification standards, and those standards can vary. Credit history, time in business, inventory levels, and operational stability all play a role in determining eligibility. Understanding these expectations upfront helps dealers avoid surprises during the application process.
Equally important is choosing a lender that understands dealerships. ACV Capital evaluates dealers through an automotive-specific lens, focusing on how inventory is sourced, managed, and sold rather than relying solely on generic lending criteria that a bank might offer.
Why Cash Flow Matters When Floorplanning Vehicle Inventory
Floorplan financing can ease the upfront cost of acquiring inventory, but it doesn’t eliminate financial obligations. Dealers should evaluate how floorplan payments fit into their existing cash flow cycle. That means understanding how quickly vehicles typically sell, how long inventory sits on the lot, and how much margin is available to cover interest and fees.
A dealership that consistently turns inventory and maintains predictable sales volume is better positioned to succeed with a floorplan. Dealers should also account for slower periods or unexpected expenses and ensure there is enough financial flexibility to absorb short-term disruptions without falling behind on payments.
Looking Beyond the Interest Rate
Interest rates are only one part of a floorplan agreement. Payment schedules, curtailments, loan terms, eligible vehicle types, and required paydowns all influence how manageable the financing will be over time.
Dealers may also want to consider how a floorplan provider supports the broader buying process, including whether related costs can be included, what level of account support is available, and how title timing impacts payment schedules. When these details are aligned, the floorplan structure is more likely to complement a dealership’s inventory strategy and sales rhythm, rather than create pressure when inventory turns more slowly than expected.
Align Vehicle Inventory Strategy With Financing
Once vehicles are floored, inventory discipline becomes even more important. Dealers should have a clear strategy for what types of vehicles they buy, where they source them, and how quickly they expect to sell.
Not all floorplans support every sourcing method. If your dealership relies on trade-ins or street purchases, it’s important to confirm those vehicles can be financed. The goal is to avoid restrictions that limit how inventory is acquired. ACV Capital funds trade-ins and consumer acquisitions.
Plan for Auto Market Shifts
Markets change, and even well-run dealerships experience unpredictable moments. Pricing adjustments, reconditioning surprises, or temporary slowdowns can affect inventory performance. Dealers considering floorplan financing should think ahead about how they would respond to these scenarios.
Knowing what options are available if conditions change such as temporary payment flexibility or support services can provide peace of mind and reduce risk.
Understand Where Your Dealership Floorplan Can Be Used
Not all floorplan financing offers the same level of flexibility. Some financing providers limit where inventory can be purchased, which can restrict sourcing options. With ACV Capital, dealers can finance purchases through ACV Auctions as well as hundreds of independent auction locations nationwide, including and all ADESA and Manheim locations. That flexibility allows dealers to source inventory where the right vehicles are, rather than being confined to a limited network.
Dealer-First Floorplan Financing with ACV Capital
Floorplan financing can be a powerful growth tool, but only when it’s introduced at the right time and with the right partner. By evaluating cash flow readiness, lender fit, financing structure, inventory strategy, and contingency planning, dealers can approach floorplanning with confidence.
With a dealer-focused approach and deep understanding of how inventory moves from purchase to sale, ACV Capital helps dealers of all sizes use floorplan financing as a foundation for long-term success.
