A floor plan audit is the lender confirming that every car it paid for is either on your lot or paid off. That's it. Dealers who treat audits as routine pass them in minutes; dealers who let paperwork slide turn a 20-minute check into a frozen line.
Here's what auditors look for, how the different audit types work, and a checklist that keeps every audit boring - which is exactly what you want.
What a floor plan audit actually checks
- Every floored unit is physically present - or its location is documented (recon, body shop, test drive, another lot).
- Every sold unit was paid off within the payoff window in your agreement.
- VINs on the lot match the VINs on the lender's floored-units list.
- Units out for repair or recon have a work order or repair-order paperwork to show.
- Demo or loaner use is allowed under your agreement and documented.
Physical, GPS and photo audits
| Audit type | How it works | What to prepare |
|---|---|---|
| Physical lot audit | An auditor walks the lot and scans VINs against the floored list | Keys organized, units accessible, off-lot paperwork in one folder |
| GPS / app audit | Units are verified through GPS devices or an app check-in | Devices installed and powered; units in range |
| Photo audit | You photograph VIN and odometer for each unit on request | A fast routine - most windows are 24-48 hours |
Pre-audit checklist
- Print or export the lender's current floored-units list.
- Reconcile it against your DMS inventory - every VIN should match.
- Confirm every sold unit has been paid off; pay off any that haven't today.
- Pull work orders for every unit at a body shop, mechanic or recon vendor.
- Document any unit on a test drive, at another location or in transit.
- Organize keys so any unit can be shown quickly.
- Check that units on the lot are accessible, not blocked in.
- Note any unit approaching a curtailment date and plan the payment.
- Make sure demo or loaner units are permitted and logged.
- Have one person own the audit and be available for the auditor.
Reconcile weekly, not the night before
A ten-minute weekly match between the lender's list and your DMS catches the small mismatches - a missed payoff, a unit left at the body shop - before an auditor does.
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The units that cause most audit problems
- Sold, not paid off: the deal funded but the floor plan payoff didn't go out.
- Off-lot without paperwork: a car at the body shop with no work order looks the same as a missing car.
- Wrong location: units moved to a second lot the lender doesn't know about.
- Title gaps: units waiting on titles that complicate payoff and resale.
Sold out of trust is the one that matters
A sold unit that wasn't paid off is 'sold out of trust' - the most serious finding in a floor plan audit. Expect an immediate payoff demand and, often, frozen draws until the lender is satisfied.
What happens if you fail an audit
Usually the lender asks for immediate payoff of any missing or sold-unpaid units, then increases audit frequency for a while. Draws may be paused until everything is reconciled. Repeated or unexplained findings can put the whole line in default.
If you're already behind on payoffs, don't wait for the next audit - call your lender, lay out a payoff plan, and fix it before it's found. Our guide on being out of trust on your floor plan walks through the first 48 hours.
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Looking for a floor plan with easier audits?
Audit style varies a lot between lenders - some use painless GPS or photo checks, others surprise physical audits. Through Dealerun you compare structures side by side, audit method included, with no credit impact.
Compare floor plans - audit style included
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Frequently asked questions
How often are floor plan audits?+
Commonly monthly to quarterly, depending on the lender, the size of the line and your history. New dealers and dealers with a recent issue are usually audited more often.
What does 'sold out of trust' mean?+
It means a floored unit was sold but not paid off to the floor plan lender within the required window. It's treated as a serious breach because the lender's collateral is gone.
Can floored units be off the lot during an audit?+
Yes, if they're documented - a work order for recon or repairs, a test-drive log, or an approved location. Undocumented off-lot units are treated like missing units.
How long do I have to pay off a sold unit?+
It's set in your floor plan agreement and is often just a few business days after the sale. Check your exact window and build payoffs into your deal-funding routine.
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