Free floor plan cost calculator — calculate inventory carrying costs, floor plan interest, and aging penalties for auto dealer inventory.
Floor plan interest is the silent profit killer. A vehicle sitting for 90 days can eat $500-$1,500 in carrying costs alone.
Know your cost-to-carry for every vehicle and set aging triggers to reduce prices or wholesale before profits evaporate.
Every vehicle on your lot is costing you money every day it sits. Floor plan awareness is one of the biggest separators between profitable and struggling dealers.
Key Features & Benefits
- Carrying Cost Per Unit — Calculate the daily, weekly, and monthly floor plan interest cost for each vehicle in your inventory.
- Aging Analysis — See how carrying costs increase as vehicles age — identify units to discount or wholesale before they eat your profit.
- Turn Rate Impact — Model how faster inventory turns reduce floor plan costs and increase annual profit.
- Curtailments — Factor in curtailment schedules — when the floor plan company reduces the advance, requiring a cash payment.
Frequently Asked Questions
What is floor plan financing for car dealers?
Floor plan is a revolving line of credit that dealers use to purchase inventory. The floor plan company pays the auction or manufacturer, and the dealer pays interest on each vehicle until it sells. Typical rates are Prime + 1-3%, making it critical to turn inventory quickly.
What is a curtailment in floor planning?
A curtailment is when the floor plan lender reduces the loan balance on a vehicle that hasn't sold within a set period (usually 45-90 days). The dealer must make a cash payment for the difference. Curtailments create cash flow pressure and signal that a vehicle should be aggressively priced or wholesaled.
How fast should a dealer turn inventory?
Industry best practice is 30-45 day turn for used vehicles and 60-90 days for new. Every day a vehicle sits costs money in floor plan interest ($3-$10/day per vehicle depending on value and rate). Dealers averaging 8-12 turns per year on used vehicles are performing well.
What are floor plan interest rates currently?
Floor plan rates typically run Prime rate plus 1-3%, putting current rates around 8-11% APR. On a $25,000 vehicle, that is approximately $5.50-$7.50 per day in carrying costs. Over 60 days, floor plan interest alone eats $330-$450 of your gross profit on that unit.
How do I negotiate better floor plan terms?
Build a strong relationship with your floor plan provider by maintaining fast turn rates, keeping defaults at zero, and growing your line gradually. Volume dealers get better rates. Consider multiple floor plan sources — competition between lenders can save 0.5-1% on your rate.