Floorplan Financing
Definition for australia automotive professionals.
A revolving credit line dealerships use to finance vehicle inventory. The lender (typically a manufacturer captive or bank) pays the wholesale cost, and the dealer pays interest until the vehicle sells. Floorplan interest is one of the largest variable expenses at any dealership — typically 3–5% of total gross. Vehicles that age on the lot accumulate floorplan cost that directly erodes margin, creating pressure to discount aged inventory and accept lower front-end gross just to stop the interest clock.
Australia Context
In the australia dealer market, floorplan financing operates within the context of Australian Consumer Law (ACL) and National Consumer Credit Protection Act (NCCP). Dealerships running Pentana, Titan DMS, Auto IT encounter floorplan financing in their daily workflow. DealerInt captures the decision layer around floorplan financing that your DMS wasn't designed to track.
Related
See the decisions your DMS doesn\u2019t track
30-day free trial. A$1,199/store/month. Works with Pentana.