In this situation you would need to stock 80 units based on 60 desired sales per month and a 40 day average turn time. This floor plan finance formula is essentially the following.
Floor plan financing agreement for featherlite inc.
Floor plan financing agreement. An auto rv manufactured home etc. Who offers floor plan financing. Many major banks offer the floor plan arrangement to its larger retail customers.
Much like a credit card a floor plan financing company extends a line of credit to a car dealer. Avangard a corporation organized under the laws of the state of pennsylvania having its principal place of business at 2708 commerce way suite 300 philadelphia pa 19154. And autosource enterprises inc.
Monthly desired sales divided by how many times your lot is turned per year multiplied by 12. Also the major automobile manufacturers in the united states created gmac ford motor credit co. Floor plan financing is a revolving line of credit that allows the borrower to obtain financing for retail goods.
These loans are made against a specific piece of collateral i e. You and your mean the borrower. Capitalized terms used in this agreement and not otherwise defined are used with the meanings set forth in schedule i.
This agreement means the floor plan financing agreement. Dealers can then use their floor plan line of credit to purchase inventory from auctions and other inventory sources. Floor plan agreement.
This agreement made this 13 th day of february 2012 by and between avangard auto finance inc. The line of credit shall be evidenced by subject to and repaid in accordance with the terms and conditions hereof and of a floor plan agreement note duly executed and delivered by the borrower the terms of the note are incorporated herein by reference thereto. When each automobile is sold the loan advance against that particular piece of collateral is repaid.
In this agreement we us and our mean regions bank. When each piece of collateral is sold by the dealer the loan advance against that piece of collateral is repaid. The floor plan facility allows the automobile dealer to obtain financing for automobile inventory.
And chrysler credit to provide both floor planning to its dealers as well as to make car loans to buyers. Advances under the facility are made against specific automobiles as collateral. The dealer borrows against their retail inventory repays the loan when they sell their inventory and borrows against the line of credit again to add new inventory.