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How to Begin a Car Dealership Floor Plan – NextGear Capital

Dealer using a car dealership floor planFloor planning may seem daunting at first, but it’s really quite simple. To put it in the simplest terms, floor plan financing works like a credit card made solely for purchasing vehicle inventory. This line of credit relieves dealers from using their own cash. The increase in cash flow allows dealers to use that money on other needs of the dealership instead of being tied up in inventory.

Most companies that offer auto dealer floor plan options want to make floor plan planning as easy and beneficial as possible for independent auto dealers. Before you launch into floor planning, be sure to follow these guidelines.


The decision to plan your inventory is usually not an easy one. It’s important to do some research to see if floor planning is right for your business. In most cases, dealerships look to floor plan financing options for all the great benefits to their dealership.

Dealers often rave about how much time plant planning saves, along with increased cash flow, from when they decide to plan the plant. In most cases, dealers who buy with cash have additional paperwork to keep track of to make sure their vehicles are purchased correctly. When dealers finance a car with a floor plan, they simply bid and put the unit on your line of credit.

It’s also important to research floor plan financing options. you want to find a lender who will work with you and design a plan that fits your dealer’s specific needs.

Unfortunately, condo planning services offered by local banks and lenders are not always offered on a consistent basis. Over the years, various financial institutions have moved in and out of the floor planning business, and support and attention for those efforts falter depending on the profitability of the bank’s or local lender’s floor planning program. /p>

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Fortunately, there are some floor plan finance companies that are dedicated solely to serving smaller independent distributors with flexible terms to suit their business needs.

There are many factors that go into choosing a floor plan financing company. While some dealers focus on getting the best rates, it’s also important to consider the resources each company provides.

for example, nextgear capital floor plans come with many different dealer resources. Our dealers have access to over 1,000 live and online auction sources, the Cox Automotive Manheim Market Report, and Kelley Blue Book Valuations from the convenience of their account portal.


Once you’ve decided which auto dealer floor plan lender is right for your business, it’s time to apply!

Some companies, like Nextgear Capital, allow you to start the application process online. the application process varies by company.

To qualify to use a floor plan from an auto dealer, a dealer must have credit. specifically, a history of using credit and paying debts. floor plan lenders want to see what a dealer’s credit history is like. A low credit score and a few marks on a credit history won’t always stop a person from using a floor plan, but it will likely limit the amount of capital a lender is willing to give a particular merchant.

start using your line of credit

Once you’ve submitted and accepted your application, it’s time to start using your car dealership floor plan!

Many auction locations accept various auto dealer floor plan companies as a payment option. This means that at auction, a dealer really only has to worry about buying inventory. With a floor plan, dealers don’t have to worry about handling back-end operations and details. all a dealer will have to do is bid and take the blocked tickets to the correct department to complete your purchase.

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Car dealership floor plans ensure a dealership has the capital needed to purchase inventory and frees up cash to pay for other expenses, such as facility upgrades. floor plans ensure cash isn’t consumed by depreciation, and dealers don’t have to spend extra time at the auction or wait for checks to clear.

Dealers will also gain access to resources offered by the lender. for example, the nextgear capital account portal. The account portal can be accessed through any mobile device and displays the dealer’s account details. they can manage audits, use express payments and much more.

Are you ready to join over 23,000 resellers and floor plans with capital from nextgear? contact your local representative or contact us.

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