Next in the Georgia Car Law Authority program, we’re going to talk about floor plan financing. A lot of new car dealers have heard the term, some never have, and a lot are looking for financing, wondering “how do I get it?” and “what is this thing called floor plan financing?” Floor plan financing is a finance product provided by financial institutions that allows the dealer to go out and use a line of credit specifically for buying vehicles.
Floor plan financing is different from a standard financing arrangement because the vehicles are secured by the financing, meaning the floor plan company can repossess the cars in the event that it’s not paid. It’s also designed a little bit different. It’s not like your standard mortgage, a personal loan, or home equity line. A floor plan financing arrangement will usually have something called curtailments, penalties, and very strict requirements on when vehicles are paid, how they are paid off, and how the transaction works.
Over the next couple of videos, we’re going to go through some specifics on floor plan financing – how it works, who offers it, and why a dealer may want it (or may not want it).
For more videos on the Georgia Car Law Authority series, please visit www.georgiacarlaw.com.
For more information and to book a strategy session, click here!