Capital One Financial Corp. announced today that it would stop offering floorplan loans to dealers in New Jersey and New York by month’s end. I’m guessing it won’t be long before other lenders follow suit.
As I wrote in this space two months ago, floorplan financing will get tougher to find.
Dealers are already struggling with mushrooming inventories, and floorplan expenses might send some over the edge. We’ve already seen Bill Heard Chevrolet close its doors. At the Auto Finance Summit earlier this week, one captive financier said we should expect a lot more dealerships to go out of business because of floorplan troubles.
