Floor Plan Financing

Floor plan financing is a form of revolving credit specifically designed for vehicle dealers to finance their inventory. When a dealer purchases a vehicle at auction or from a wholesaler, the floor plan lender pays the seller directly. The dealer then has the vehicle on their lot and repays the lender when the unit sells. Interest accrues daily on each floored vehicle from the date of purchase until the loan is paid off.

Floor plan financing is what keeps dealership lots stocked with a wide range of inventory. It allows dealers to carry more vehicles than they could fund outright, which means more selection and more competitive pricing for buyers.