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Question:

what is automobile floor plan?

what is automobile floor plan?

Answer:

Flooring is the name used when a finance institution owns the vehicles that are being sold by a dealer. They could be new or used vehicles. The agreement is to pay the flooring debt off when a vehicle is sold (this may be when the deal has been financed or within 3 days). Each month, the dealer will receive a list of vehicles that are on the floor plan and the interest due. The finance company will come out and take a physical inventory of those vehicles to make sure that they are still on the lot and not sold. If you sold a vehicle and have not paid the flooring, you will required to pay that day. You will also be inventoried more often. If this happens too often, you will loose the account or pay more interest.

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