AFS Addresses Common Floor Plan Financing Myths

IRVINE, Calif., January 24, 2018 (Newswire.com) - Floor plan financing is a common way for independent auto dealerships to acquire inventory yet there remains some myths and misconceptions about how floor planning works. In a new statement to the press, floor plan lending company AFS offers clarity and insight and debunks some of the more pervasive myths.

“One common misconception is that floor planning is somewhat uncommon or that it’s something most dealerships don’t do,” AFS comments. “This could not be further from the truth.” Indeed, all independent auto dealerships need to acquire inventory and for those that don’t already have millions of dollars on hand, floor plan lending is really the best option.

Another myth about floor plan financing is that all floor plan lenders are created equal. “Floor planning companies can vary in a number of ways,” comments AFS. “It is always wise to do some due diligence and find the floor plan lender who best fits your needs.”

There are a number of components to this. “We recommend that dealerships weigh interest rates, customer service and back-end account management options,” says AFS. “These are some of the key distinctions between floor plan lenders.”

Still another myth about the floor plan financing process is that preparing for an audit is difficult. “It requires some work, but so long as you keep organized, you’ll be fine,” comments AFS. Some specific tips for dealers include choosing an audit point person, and ensuring that titles and other vehicle records are kept well-organized and easily accessible.

AFS notes one more myth about floor plan financing, which is that it somehow limits where dealers can purchase their inventory. “Actually, it expands your options,” AFS states. “It doesn’t limit them.”

In fact, most floor plan credit lines are accepted both at auctions and at wholesalers.

“The main takeaway from this is that it’s important for dealers to educate themselves on the floor planning process,” notes AFS. “To learn more, we recommend dealers contact a reputable floor plan financing company, such as the team at AFS.”

AFS provides financing services to dealerships throughout California, empowering independent dealers to build up their inventory without tying up their capital. The company sees itself as a strategic partner and invests in the ongoing success of each dealership it works with. More information about AFS and its services can be found online at www.useafs.com.

ABOUT:

AFS is a financial services company that works with independent auto dealerships throughout California, providing a full range of offerings that include credit lines, floor planning and beyond. AFS can also provide dealerships with access to top-of-the-line marketing and legal services. AFS is based in Orange County. More information about the company can be found online at www.useafs.com.

Source: Auto Finance Solutions (AFS)