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AFC launches alternative to traditional fixed-duration floorplans

KAR Global unit AFC launched a flexible alternative to traditional fixed-duration floorpan solutions through its Daily Tab product, which may be particularly useful for dealerships in both Canada and the United States anticipating fast-turning vehicles.

“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,” said Jim Money, President of AFC. 

According to the company, Daily Tab enables dealers to pay only for the days of flooring they need. That can be as little as one day or more, and dealers pay a daily fee each day the unit remains on floorplan. 

The offering is also meant to help reduce cash flow pressure on cash buyers, and make it easier to expand working capital that can be used to fund more vehicle inventory. 

Money also said AFC’s daily tab is ideal for dealers who typically purchase low value inventory, or who only need very short-term financing—“something that is cost-prohibitive with traditional floorplan products,” he said. 

“The benefits really stack up—from more working capital so dealers can opportunistically source fresh inventory, to a consolidated single payment source for all auction purchases whether digital, mobile or on-premise, and even back-office support,” said Will Mitchell, Chief Operating Officer of AFC.

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