Every floor plan company will quote you a rate. The rate is maybe a third of what actually determines whether the line grows your dealership or quietly strangles it. Audit style, curtailment schedule, title turnaround, and how a lender treats you during a slow month matter just as much - and none of that shows up in the headline number.
Here's how to tell the difference between floor plan companies, what to compare, and the questions that separate a partner from a problem.
The three types of floor plan lenders
Almost every floor plan company falls into one of three buckets, and the trade-offs are predictable:
| Type | Strength | Trade-off |
|---|---|---|
| National / captive floor plan companies | Scale, fast auction integration, high lines | Rigid curtailments, aggressive audits, little flexibility on a slow month |
| Banks & credit unions | Lower rates for strong dealers | Slow approvals, heavy documentation, smaller lines for newer lots |
| Independent lenders & marketplaces | Flexible terms, work with newer dealers, real humans | Rates vary - you have to compare to find the right fit |
What separates a good floor plan company from a costly one
- Curtailment schedule: how fast do they force principal paydowns? A 10%-at-30-days schedule hurts far more than 10%-at-60 if your average unit takes 45 days to turn.
- Audit method and frequency: GPS/photo audits are painless; surprise physical lot audits every two weeks are a tax on your time.
- Title processing speed: slow title release kills retail deals. Ask for their average turnaround in writing.
- Fee schedule: per-unit draw fees, extension fees, and reinstatement fees add up faster than a point of interest.
- Flexibility in a slow month: the best partners work with your seasonality instead of defaulting you over one late curtailment.
Compare total carry cost, not the rate
A lender at 11% with $25 draw fees and 60-day curtailments can be cheaper over a year than one at 9% with $75 fees and 30-day curtailments. Model it on your actual turn rate before you sign.
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Questions to ask before you sign
- What's the curtailment schedule, and can it flex with my average days-to-turn?
- How and how often do you audit - and what happens if a sold unit is pending title?
- What's your average title release time after payoff?
- List every fee: draws, extensions, reinstatements, and audits.
- How do you handle a dealer who has one slow month?
Red flags
Vague answers on fees, curtailments shorter than your turn rate, physical audits with no notice, and title release measured in weeks. Any one of these can turn a 'cheap' line into your most expensive vendor.
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Why dealers compare floor plans through Dealerun
We work exclusively with automotive businesses, and our funding partners specialize in floor plan - so you weigh real, apples-to-apples structures side by side instead of taking the first yes. Lines up to $10M, decisions in hours, and no credit impact to look.
Compare floor plan companies in one application
Two minutes, no credit pull - see structures from lenders who actually know the car business.
Frequently asked questions
Who are the best floor plan financing companies for used car dealers?+
There's no single 'best' - the right floor plan company depends on your volume, average days-to-turn, and how established your lot is. Independent lenders and marketplaces tend to fit independent and newer dealers better than national captives, which are built for high-volume franchise stores. Comparing several at once is the only way to know.
Can I switch floor plan companies?+
Yes. Dealers move floor plans regularly when curtailments, audits, or fees stop fitting their business. The new lender typically pays off your existing draws and moves the titles - plan the transition around a lower-inventory stretch to keep it smooth.
Do floor plan companies check personal credit?+
Most do, because the guarantor stands behind the line. Many automotive-focused programs work from around 600, leaning on dealer experience and clean payoff history as much as the score itself.
How big a floor plan line can I get?+
Lines commonly run from $50K for a newer independent lot up to $10M for high-volume dealers, sized to your sales, history, and the mix of inventory you floor.
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