What Is Flooring A Car

Retail floor planning also referred to as floorplanning or inventory financing is a type of short term loan used by retailers to purchase high cost inventory such as automobiles these loans are often secured by the inventory purchased as collateral.

What is flooring a car. Floor planning is commonly used in new and used car dealerships. Front money to put vehicles on the floor of a dealership. Floor planning is a form of financing for large ticket items displayed on showroom floors. The bank is flooring all these cars said the sales manager to the new hire.

For example automobile dealerships utilize floor plan financing to run their businesses. Auto dealership slang to finance vehicles for sale lit. Contrary to common perceptions most car dealers do not pay cash for the. How does floor plan financing work specifically to benefit auto dealers.

The floorpan is a large sheet metal stamping that often incorporates several smaller welded stampings to form the floor of a large vehicle and the position of its external and structural panels. Floor plan finance companies are uniquely attuned to the needs of auto dealers. Using cash or a bank line of credit to purchase inventory can work for some car dealers but many floor plan financing companies offer a variety of dealer specific benefits.