Retail Auto Floor Plan Costs

Floor plan loans are among the safest of all financial instruments.

Retail auto floor plan costs.

Floorplanning as a dealership profit center goes back at least to 2009 according to nada. Looking for trends in floor plan costs. For example automobile dealerships utilize floor plan financing to run their businesses. If your holding cost per day per unit is 44 63 and your turn time is 60 days you will spend 2677 of your profit holding on to a non selling car.

Let s say you make a profit of 3 000 per car sold. That number then climbed every year before peaking in. If this dealer s holding cost per day per unit is 44 63 and their turn time to sell a car is 60 days they will spend 2677 of their profit holding on to a non selling car. But because inventories are so immense the car business is very sensitive to both floor plan interest rates and the tax treatment of interest expenses.

Top industry news for dec. Floor planning costs can run into hundreds of thousands of dollars a month for a big multi location dealer with large inventories. Pandemic fast forwards digital auto retail to new reality. Let s say a dealer makes a profit of 3000 per car sold.

These floor plan finance formulas incorporated with a dealer s turn time can help to make or break a dealership s profitability. Get the auto spare parts store business plan pdf word and excel click buy now below to purchase using paypal credit card or debit card after you have purchased you will see the download link for the business plan package on the screen. These floor plan finance formulas incorporated with your turn time can help to make or break your dealership s profitability. A one percent rate increase can raise some dealership costs by millions of dollars.

In 2010 dealerships made an average of 2 355.