Vehicle inventory
Acquire eligible vehicles for resale through a provider-approved inventory or floor-plan structure with clear payoff and reporting rules.
Funding Solutions
Auto Dealer Financing
Explore auto dealer financing for vehicle inventory, reconditioning, operations, and dealership growth—not consumer auto purchases.
Explore Your OptionsOverview
Build financing around the dealership’s inventory and sales cycle.
Auto dealerships commit cash before a vehicle is retailed. Acquisition, transportation, inspection, reconditioning, title work, advertising, payroll, and lot expenses may all occur before sale proceeds arrive. Dealer financing can include inventory or floor-plan facilities, working capital, equipment financing, and other commercial structures selected around the actual need.
A floor-plan arrangement is generally an inventory-focused facility rather than unrestricted operating cash. Availability can be tied to eligible vehicles, audits, curtailments, payoff rules, and the provider’s collateral controls. A separate working-capital structure may be more appropriate for staffing, marketing, repairs, or expansion costs. The dealership should understand how each facility interacts with inventory turn and existing obligations.
Common uses
Where this path may help.
Dealer capital should address a defined point in the inventory or operating cycle and remain supportable under realistic sales assumptions.
Reconditioning and readiness
Support inspection, transport, repairs, detailing, or merchandising through an appropriate operating-capital path.
Dealership operations
Manage payroll, advertising, software, lot expense, or seasonal timing where a general working-capital product fits the purpose.
Location or capacity growth
Plan a measured facility, inventory, staffing, or technology expansion with the full project cost and ramp-up period in view.
How it works
How dealership financing is generally evaluated.
The provider first separates inventory needs from unrestricted operating needs, then reviews the dealership and proposed collateral.
- 01
Define the facility purpose
Clarify whether the request is for vehicle purchases, reconditioning, working capital, equipment, or expansion, and identify existing financing relationships.
- 02
Review dealership performance
Evaluate sales volume, gross performance, inventory age and turn, bank activity, obligations, management experience, and collateral records as applicable.
- 03
Establish controls and use
If approved, follow the agreement’s advance, title, audit, curtailment, payoff, reporting, insurance, and permitted-use requirements.
Provider review
What may be evaluated.
Inventory-heavy financing can require ongoing collateral visibility. A provider may review both historical dealership performance and each eligible vehicle or inventory pool.
Business and transaction factors
- Vehicle sales, gross trends, and operating cash flow
- Inventory mix, age, turn, valuation, and concentration
- Existing floor-plan balances, curtailments, and other obligations
- Management experience and dealership operating history
- Requested facility purpose, reporting capacity, and collateral controls
Commonly requested documentation
- Recent business bank statements and financial statements when requested
- Inventory listing with vehicle and valuation details
- Sales reports, aging, and current floor-plan statements
- Entity, ownership, insurance, and dealership records required by the provider
- Expansion budget, lease, purchase agreement, or equipment quote when applicable
Decision points
Inventory availability is only useful when turn remains healthy.
More units can increase opportunity, but aging stock, curtailments, holding costs, and concentrated vehicle categories can also increase pressure.
Floor plan is not general cash
Inventory advances are normally tied to eligible vehicles and provider controls. Using the wrong structure for payroll, marketing, or fixed expenses can create compliance and liquidity problems.
Model aged inventory
Slow-moving units may trigger curtailments, reduced availability, or payoff pressure under an agreement. Purchasing discipline matters as much as the facility limit.
Coordinate multiple obligations
A dealership may have floor plan, working capital, equipment, and property obligations. Review liens, payment priorities, cash controls, and cross-default terms before adding another facility.
FAQ
Common questions.
What is auto dealer financing?
It is commercial financing for dealership needs such as vehicle inventory, working capital, equipment, or expansion. It is not consumer auto financing. The appropriate product depends on whether the request is inventory-specific or operational.
How does floor-plan financing differ from working capital?
A floor-plan facility is generally tied to eligible vehicle inventory, with title, audit, payoff, and aging controls. Working capital may support broader operating costs. Each agreement defines permitted use and collateral requirements.
Can independent dealerships be considered?
Independent dealerships may have financing paths, subject to provider requirements. Review can include operating history, sales, bank activity, inventory practices, existing obligations, management experience, and required business records.
What is inventory turn and why does it matter?
Inventory turn reflects how efficiently vehicles move through the dealership. Providers may review unit age and sales cadence because slow inventory can increase holding costs, curtailments, valuation risk, and pressure on liquidity.
Can dealer financing support a new location?
Potentially, but a location project may require separate property, buildout, equipment, inventory, and working-capital components. Provider review can depend on the budget, site, operating history, management plan, and projected ramp-up.
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