Floorplan Financing
Floorplan financing is a revolving credit line dealerships use to finance vehicle inventory. Learn how floorplan interest erodes margin on aged units.
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.
Category: Finance
Unlock calculator
See your estimated override exposure
Enter your work email once to unlock the calculator for this session. Same privacy as our extension lead flow.
By continuing you agree to hear from DealerInt about your trial. Unsubscribe anytime.
Related terms
Learn more
Get override visibility on your DMS
30-day free trial. No credit card. Works alongside your existing tools.