How do used car lots get the financing to buy their cars? Is it on a 90 day note or something?
I'm thinking of opening a used car lot with a twist and I have great credit but to put together a business plan I need to know what kind of financing I will be able to get to find out how much start-up capital I will need
Public Comments
- You can either pay cash for vehicles, or you can get a line of credit (floor plan). Some auctions also offer "float" where you have 30-60 days to pay for a vehicle. If you have no experience in the automobile business, be very careful. There are a lot of tricks of the trade that you need to know, and these only come from experience. You may want to join your state dealer association, or at the very least team up with an experienced auto professional. Good Luck
