Comparing Floor Plan Lenders

By Chris Miller

Floor planning partners are often an integral part of dealership operations. Comparing various floor plan lenders and choosing a floor plan partner can be an involved decision for a dealer. Certainly there are a number of options available for dealers to get financing. However, selecting a lender as a dealership partner involves more than just the ability for a dealer to access capital. Partnering with a lender that can not only give a dealer the required funds to purchase inventory, but can also help save dealers time and preserve cash flow should be considered in a search for floor plan lenders.

Technical Capabilities
Independent dealers are incredibly busy. At a moment’s notice, dealers should be able to check on the current status of any vehicle on their floor plan, from any device. Additionally, dealers need the capability to get a holistic view of their entire account. The ability to quickly view reports about outstanding balances, inventory types and vehicle turn times mean that dealers don’t have to be concerned about building time-consuming reports and can swiftly get back to business.

Look for a lender that provides: easy, 24/7 secure access to your account and dashboards which provide a high-level view of important metrics and account details. The ideal lender should give dealers the ability to securely look at inventory currently on their floor plan, schedule payments, view vehicle titles, account analytics and submit new inventory for financing.

Customer Service
Providing superb customer service is often a cornerstone at any dealership, and dealers often expect that same level of customer service from their floor plan lenders. Do you have a local representative in your area? Is it easy to resolve any floor planning obstacles? If your business grows significantly, will your floor plan provider be able to keep up? It is important to ensure your floor plan provider has the ability to take care of your dealership’s individual business needs in the fast-paced dealership environment.

Integrated Solutions
Dealers need business partners to help provide seamless solutions that can ultimately save dealers time, and preserve overall cash flow. Some dealers may prefer to use independent business partners for various tasks, but dealers should consider the integrated solutions that some floor plan lenders can offer.

Though selecting a floor plan provider isn’t a simple decision, having standard criteria to compare floor plan lenders should aid dealers in making a final decision.
Chris Miller is an automotive re-marketing veteran leader with expertise in strategy, operations, sales, project management, marketing and finance. As Director – Strategic Initiatives for NextGear CapitalTM, he strives to strengthen the floor plan provider’s core business while develop new and unique offerings that provide valuable solutions for independent dealers.

NextGear Capital is the most comprehensive provider of lending products and support services for the automotive remarketing industry. It provides $20 billion in annual funding to more than 23,000 auto dealers throughout the United States, Canada, United Kingdom, and Ireland. NextGear Capital provides auto dealer floor plans that are tailored to individual business needs and which provide buying power to over 1,000 live and online auctions nationwide. NextGear Capital is a Cox Automotive company.

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Carmel, IN 46032