Every new dealer hits the same wall: you need inventory to build sales history, and lenders want sales history before they'll fund inventory. The way through isn't a perfect file - it's a smaller, well-run first line that proves you can turn cars and pay them off on time.
Here's what lenders look at when you don't have dealer history yet, what to expect from a first line, and a practical plan to get from license to first draw.
What a realistic first floor plan looks like
| Term | New dealer (typical) | Established dealer (typical) |
|---|---|---|
| Line size | $50K - $250K | $250K - $10M |
| Rate | Upper end of the 9-13% APR range | Lower end, sometimes below |
| Curtailments | Tighter - often starting at 30-60 days | More flexible schedules |
| Audits | More frequent at first | Less frequent with a clean record |
| Personal guarantee | Yes | Usually yes |
What lenders lean on when you have no dealer history
- Industry experience: years as a sales manager, buyer or finance manager count, even at someone else's store.
- Personal credit: with no business history, your personal profile carries more weight.
- Cash reserves: money to cover curtailments, recon and a slow month - not just the license fees.
- A written inventory plan: target units, price band, where you'll buy and how fast you expect to turn.
- Clean bank statements: steady deposits and no repeated overdrafts, even if they're personal statements.
Start smaller than you're approved for
If you're approved for $150K, run $100K for the first few months. Fast payoffs on fewer units build the history that gets your line increased - and leave you cash for curtailments if a few cars sit.
60-Second Funding Check
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What do you need funding for?
A 90-day plan to your first floor plan line
- Weeks 1-4: dealer license and surety bond, garage liability and open-lot insurance, auction access credentials.
- Weeks 5-8: open a dedicated business account and run all deposits through it; write your inventory plan; apply with a complete file.
- Weeks 9-12: take small first draws, price to turn, and pay off each unit within days of sale - your first 20 payoffs are your track record.
Run your first line's numbers
Before you buy your first auction run, model what the inventory will cost to carry. Plug in your planned units, average cost and expected days-to-sell - new dealers often underestimate how quickly carry cost and the first curtailment add up when cars sit.
Floor Plan Calculator
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Independent floor plans typically run 9-13%
Floor / draw fee charged on each unit
First curtailment due at
Carry cost per unit as it ages
Amber = past your first curtailment, when a principal paydown is also due.
Carry cost per unit
$319
1.8% of unit cost · $5.42/day in interest
Your average unit sells before its day-60 curtailment - no principal paydown on a typical unit.
Compare floor plan offersEstimates for illustration only - not a loan offer or commitment. Actual rates, terms and fees depend on the lender, your credit and financials, and the specific deal.
Mistakes that stall a new dealer's line
- Overbuying at the first auctions and maxing the line before you know your real turn rate.
- Paying for recon out of the floor plan budget instead of operating cash, so cars queue unready.
- Letting units age past the first curtailment without the cash set aside to pay it.
- Slow payoffs after a sale - the fastest way to lose a lender's trust (and your line).
Never sell a unit without paying it off
Selling a floored car and using the money elsewhere - even for a few days - is 'sold out of trust.' For a new dealer it usually means a frozen line. Pay off every unit inside your agreement's payoff window, every time.
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Why new dealers start with Dealerun
Some floor plan companies only want franchise stores. Our funding partners include lenders built for independent and newer dealers, so a first-year lot gets matched with programs that actually fund first-year lots - with no credit impact to check.
Get matched with new-dealer floor plan programs
Two minutes, no credit pull - see which lenders fund dealers at your stage.
Frequently asked questions
Can I get floor plan financing with no dealer experience?+
It's harder but possible. Lenders lean on related industry experience, personal credit, cash reserves and a clear inventory plan - and typically start you with a smaller line that grows with your payoff history.
How much cash do I need alongside a floor plan?+
Enough to cover one full round of curtailments plus recon on your first units. At a 10% curtailment, that means cash equal to at least 10% of your floored inventory value, before recon.
How long until my floor plan line can increase?+
Commonly six to twelve months of clean, on-time payoffs and passed audits. Lenders increase lines based on how you've handled the one you have.
Is floor plan financing for new dealers more expensive?+
Usually somewhat - newer dealers tend to price toward the upper end of the typical 9-13% APR range with tighter curtailments. Turning cars quickly matters more to your total cost than the rate itself.
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