What Is Flooring A Car

Floor planning is a form of financing for large ticket items displayed on showroom floors.

What is flooring a car.

Contrary to common perceptions most car dealers do not pay cash for the. How does floor plan financing work specifically to benefit auto dealers. Auto dealership slang to finance vehicles for sale lit. Floor planning is commonly used in new and used car dealerships.

In the case of monocoque designs the floorpan is the most important metal part establishing the chassis body and thus the car s size it serves as the foundation of most of the structural and. Front money to put vehicles on the floor of a dealership. Retail floor planning also referred to as floorplanning or inventory financing is a type of short term loan used by retailers to purchase high cost inventory such as automobiles these loans are often secured by the inventory purchased as collateral. The bank is flooring all these cars said the sales manager to the new hire.

For example automobile dealerships utilize floor plan financing to run their businesses. Floor plan loans are among the safest of all financial instruments. 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.