Believe it or not, the big providers are not the only financial institutions where you can get Floor Plan Financing.
In this video, we discuss alternative providers and whether the terms of a Floor Plan are negotiable.
Below is a transcript of the video:
Before we get into some of the details of floor plan financing, one of the questions I get a lot from new dealers is, “where do I get this stuff?”
Not only does GIADA have a good listing, but it’s important to know that other folks also provide floor plan financing. Sure, there are the big players there’s the NextGears, the Floor Plan Xpresses, the big players in the world of floor plan financing, but it’s also provided by a lot of smaller banks, regional banks, and local banks.
Now, a lot of the really small banks aren’t going to provide it because it is kind of a specialized product, but as a new dealer or a dealer looking for new financing or floor plan, it’s important to reach out to some of the sources that may not be in the wheelhouse.
They might not be the NextGears, the Floor Plan Xpresses, or the companies that specialize in floor plan financing, but rather some of the regional banks or even national banks. It may not be an immediate thought that they provide this kind of financing, but it might be worth reaching out to them for the sole reason that they’re more likely to work with the dealer on the product itself. NextGear, Floor Plan Xpress, these big players have a cookie-cutter floor plan financing arrangement.
They have the same forms they use for every one of them. They have the same structure. They have the same curtailments. Is it negotiable? Maybe, it depends on how much the loan would be or how much bargaining power the dealer might have, but usually, not really negotiable. The regional banks that want to get the business may be more willing to work on things like penalties and the length of the loan per car, which we’ll get into in a little bit. So before obtaining floor plan financing, it’s important to reach out to a lot of the known commodities, but also maybe the unknown commodities because there might be a diamond in the rough.
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