Floorplan Financing
Definition for new zealand 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.
New Zealand Context
In the new zealand dealer market, floorplan financing operates within the context of Consumer Guarantees Act (CGA) and Fair Trading Act. Dealerships running Pentana, Titan DMS, Autobase encounter floorplan financing in their daily workflow. DealerInt captures the decision layer around floorplan financing that your DMS wasn't designed to track.
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