What is Floorplan?
A line of credit used by dealerships to finance their vehicle inventory.
Understanding Floorplan in Dealership Operations
A Floorplan is essentially a massive credit card for car lots. Dealerships rarely own their inventory outright; instead, they finance it through a floorplan lender. As vehicles sit on the lot, the dealership pays interest (floorplan expense). When a car is sold, the dealer must pay off that specific vehicle's portion of the loan. Inventory management software is vital for tracking aging inventory to reduce floorplan interest costs.
How CarSalesSoftware.com Handles Floorplan
Our all-in-one dealership operating system includes dedicated tools to help you manage floorplan more efficiently. Stop paying for disconnected systems and bring everything into one unified platform.
Related Glossary Terms
ACV (Actual Cash Value)
The true wholesale value of a vehicle, representing what a dealership is willing to pay for a trade-in or purchase at auction.
Automotive CRM
Customer Relationship Management software tailored for auto dealerships to track leads, manage follow-ups, and monitor the sales pipeline.
Back-End Gross
Profit generated in the F&I office through financing reserve and the sale of aftermarket products.