Nine months after GE Money and GMAC pulled out of the floorplan business in Australia, the country’s government has activated a floorplan finance program for dealers.
The new program, called OzCar, launched today. Supported by country’s big four banks, OzCar is a special purpose vehicle worth A$550 million ($460.7 million). When it was initially announced last December, OzCar was pegged at A$2 billion ($1.66 billion). But since some dealers have managed to secure other floorplan funds, the government lowered the amount in June.
I bet there are a lot of U.S. dealers pining for a similar program here. Sure, the Small Business Administration has gotten in on the game, debuting a floorplan finance initiative and expanding some of its loan guidelines to better serve the auto market. But there are still lots of dealers — particularly those spurned by their manufacturers — in need of inventory finance.
