Car Dealer Inventory Financing Solutions for Your Business

As a car dealer, managing your inventory is a top priority. You need to have the right vehicles on the lot to meet customer demand and stay competitive in the market.

Car dealer inventory financing solutions can help you achieve this goal by providing the necessary funds to purchase and maintain your inventory. This can be especially helpful during slow sales periods or when you need to refresh your inventory with new models.

Having access to inventory financing can also give you the flexibility to respond quickly to changes in the market. According to industry statistics, dealerships that use inventory financing are 25% more likely to increase their sales volume.

With the right financing solution, you can focus on what matters most – providing excellent customer service and building strong relationships with your customers.

Here's an interesting read: Why Inventory Should Be Digital?

Car dealers can acquire inventory through floorplanning, a line of credit used as a payment method at auctions. This allows dealers to make purchases without needing to pay upfront.

Broaden your view: Do Car Dealers Lease Used Cars

Floorplanning can also be used for purchases outside of auctions, giving dealers more flexibility. Dealers can use this credit to buy vehicles from other sellers.

The line of credit is essentially a loan that dealers can use to purchase inventory. Dealers can then pay back the loan over time, with interest.

Dealers can use floorplanning to acquire a wide range of vehicles, including new and used cars. This makes it a versatile option for dealers with varying needs.

For another approach, see: Rv Dealers Finance

Car dealer inventory financing can be a game-changer for businesses. With the right financing solutions, dealers can enjoy improved cash flow and liquidity.

Immediate funding and improved days sales outstanding balance sheet ratio are just a couple of the benefits that vendors can expect. This can help dealers make timely payments and avoid late fees.

Here are some key benefits to dealers:

By using floorplanning or floorplan financing, dealers can relieve themselves from using their own cash to purchase inventory. This gives them more financial flexibility to focus on other business needs.

Immediate funding is a huge benefit to vendors, allowing them to improve their days sales outstanding balance sheet ratio. This can have a significant impact on a business's financial health.

Vendors can also mitigate or eliminate credit risk with the right financing options. This can give them peace of mind and reduce stress.

By reducing or eliminating collection expense, vendors can save money and allocate it to other areas of their business. This can be a game-changer for small businesses or startups.

Tailored programs, processes, and reporting can also be a huge benefit to vendors. This can help them better manage their finances and make informed decisions.

Automated electronic data transmission and 24/7 online account management and analytical tools can also be a huge benefit to vendors. This can save them time and increase efficiency.

Here are some of the benefits to vendors in a concise list:

Kinetic Advantage provides complete inventory financing solutions for your dealership, offering flexible terms up to 180 days and a collaborative partnership.

With floorplanning, you can purchase inventory without using your own cash, giving you more financial flexibility for other business needs. This line of credit relieves you from using your own cash, allowing you to use that money on other needs of the dealership.

Floorplan financing is a credit arrangement that allows car dealers to purchase inventory without using their own cash. It provides the dealer with an extended amount of time to pay for the purchase of inventory.

Kinetic Advantage offers flexible term plans with a simple structure and advances up to 100% of purchase price. Our Floorplan Financing Solutions offer a collaborative partnership and painless audits.

Here are some key benefits of floorplan financing:

With floorplan financing, you can improve cash flow and liquidity, and have adequate credit lines. You'll also have responsive and personal account management with 24/7 access to online customer systems and analytical tools.

You've got a dealership to run, and inventory financing can be a challenge. There are several options to consider, including auction funding, which can help you fund your auction inventory purchases with a Floorplan Credit Line.

Consider reading: Difference between Inventory Financing and Equipment Financing

Auto Use is partnered with over 500 Auctions across the country and all major online auctions, making it easier to buy and source inventory. This can be a game-changer for dealerships looking to expand their inventory quickly.

Direct dealer funding is another option, allowing you to floorplan your current inventory and free up some of your dealership's cash flow. This can be a lifesaver for dealerships sitting on thousands of dollars in inventory that's not being used.

Not having a floor plan agreement shouldn't hold you back from growing your business. With alternative lending options available, many with low to no credit requirements, it's easier than ever to acquire the capital you need to grow your dealership.

On a similar theme: Pros and Cons of Financing a Car through a Dealership

Auction purchases can be floorplanned, which makes it easier to source inventory.

We provide a simple floorplan solution for auction purchases, trade-ins, off-street purchases, dealer-to-dealer purchases, dealer-owned inventory, consumer loan payoffs, and buybacks.

Floorplanning can be a game-changer for dealerships, allowing you to acquire the inventory you need to grow your business.

Auction funding is also available, and Auto Use is partnered with over 500 auctions across the country to make buying and sourcing inventory as easy as possible.

NextGear Capital offers both retail and wholesale financing options, making it a great choice for dealerships with diverse inventory needs.

Westlake Financial offers credit lines starting at $25,000 and rates as low as 4.5%, making it an attractive option for dealerships looking for flexible financing options.

Direct Dealer Funding allows you to floorplan your current inventory and free up some of your dealership's cash flow.

The FAST-FUND PROGRAM from Auto Use allows you to easily floor your trade-ins, dealer-owned inventory, off-street, dealer-to-dealer, and non-approved auction purchases.

Discover more: Different Types of Auto Loans

The used market is a significant player in the automotive industry, with a huge influx of vehicles re-entering the market every year. Approximately 3.9 million used vehicles re-entered the marketplace in 2018 from coming off lease and off fleet, and from repossession.

Consider reading: Salvage Car Loans

Most of these vehicles are resold by larger franchise dealerships. They are able to maintain control over this class of used inventory and provide some measure of assurance to a buyer through the "certified pre-owned" concept.

A majority of independent car dealers sell cars in the $5000 - $10,000 range, and a significant portion of this group sells cars that are from 6 - 10 years old. This suggests that buyers in this price range are looking for reliable, affordable options.

The "certified pre-owned" concept has allowed franchise dealerships to significantly raise the price of a used car, making it a more attractive option for buyers. This has helped them maintain control over the used inventory and provide a more premium experience for customers.

Here's an interesting read: Loans for Car Dealerships