Beware of Dealership Floor Plan Financing: Understanding the Risks for Car Buyers
Download MP3In this episode, we'll discuss floor plan financing at car dealerships and its impact on dealers and consumers. Floor plan financing is a specific type of credit that dealerships use to finance their inventory, allowing them to purchase vehicles without having millions of dollars in cash on hand. However, this line of credit can also get dealerships into trouble if not used carefully, potentially negatively affecting their customers and auto sales. We'll explore how floor plan financing at a car dealership works and what can happen if you buy a car from a dealership that hasn't paid off its inventory before the sale.
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Episode Resources:
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