Floor plan and sub prime lending questions.

[Simple Auto Sales]

Hello everyone,

I started up used car dealership. I have my license and master tag in hand. And just now starting to get inventory in. Wanted to see what are the requirements to get floor plans and sub prime lending for my customers.

also, which floor plan company is the best one? I have fair credit score and about 3 years in the Auto industry. Also, how do I get sub prime lenders in my business where I can approve most of my customer? What do you all use?

 

[Quality Motors]

look into signing up with the following subprime lenders

lobel financial
united auto credit corp
westlake (hard to sell a deal with..gotta buy certain cars)
western funding
Gold Acceptance
Nationwide Auto Finance

These should get you started pretty good. You should have some kind of dealer software to facilitate the financing. i use DealerCenter which is OK. I get my monthly fee waived if i do a deal with westlake or western funding atleast once a month. i always thought financing was something i wouldnt do, too complicated or something. but subprime is easy as hell. its a numbers game and you just need to play with the numbers.

I have nextgear and i have had them from the beginning for flooring. I have never had an issue. Some people dont like them and prefer their own choice. I also had AFC for a short 6 months. On any of my flooring i NEVER have had a late payment or anything. I had a customer who i was purchasing toyota Prius vehicles for (numerous units 10+ a week) and we had done loads of business pretty much a volume thing for me. And he paid by check. Well one of his checks had bounced and in turn it cause my payment to the floor to bounce. AFC after 3 months of doing their "Due diligence" because of the payment that didnt go thru even though i literally paid that payment in under 30mins from when the local branch called. After giving AFC close to 1million in business in a short 3-4 months they locked the account and NEVER even told me they were gonna close my account. Finally after 3 months i called corporate and yelled and screamed at them that i need a simple Yes/No answer from you.

I originally didnt want to sign up with AFC as im happy with nextgear. I have a pretty decent floor line with them so i wasnt so worried to get another company. But AFC offered a nominal line as well, and i figured why not? Never know.

you have to just kinda shop around and see what the different flooring companies offer you. The advantage with Nextgear is that they are owned by manheim so flooring at manheim auctions is very easy.