For independent dealers with cash flexibility, AFC is rolling out a program to leverage that liquidity when securing inventory during these unprecedented times in the wholesale market.
On Tuesday, the business unit of KAR Global announced that it now offers cash buyers what AFC believes is a convenient, flexible and simple floorplan solution through its Daily Tab product.
To date, AFC said more than 109,000 units have been floored using this offering. The company explained the product is a less rigid solution than traditional fixed-duration floorplans and well-suited for dealers who anticipate fast-turning vehicles in today’s high-demand retail market.
Daily Tab can enable dealers to pay only for the days of flooring they need — starting as short as just one day and continuing until the unit is paid off. The offering reduces cash flow pressures for cash buyers and facilitates expanded working capital that can be put to work funding more inventory.
“Daily Tab is a simple idea that’s perfect for traditional cash-buying dealers: they pay a flat daily fee until their unit is paid off. So whether that’s in one day, one week or one month — they’re only paying for what they need, freeing up cash while keeping costs low,” AFC president Jim Money said in a news release.
“Daily Tab is ideal for the dealer who typically purchases low-value inventory or only needs very short-term financing, something that is cost-prohibitive with traditional floorplan products,” Money continued.
AFC indicated that a daily fee is paid each day the unit remains on floorplan and starts at just $2 per day, depending on the amount floored. The company explained that the fee structure is geared to be easy to calculate, completely transparent and inclusive of all fees, including the floorplan fee, interest, and document processing fee.
Daily fees are only incurred as long as a unit remains on floorplan, according to AFC.
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