Have you ever borrowed money from a friend and told them you’d pay them back when you have the money? That’s how working with a flooring company works.
Since 2008, Big Valley Auto Auction has accepted cash, cashier’s checks, business checks, and flooring companies as payment for our services.
In this article, you’ll learn what a flooring company is, how a flooring company works, what flooring companies are accepted at Big Valley Auto Auction, and if you can still attend a Big Valley auction without their affiliated flooring companies.
After reading this article, you’ll have the information needed to prepare for buying vehicles from Big Valley Auto Auction.
What Is a Flooring Company?
Auto dealerships often have a large inventory of vehicles on their lots. Dealerships establish a credit line from a flooring company to manage their inventory. Dealerships use their line of credit to purchase the vehicles they plan on selling.
The cars bought with the credit line usually act as security for the flooring company. As the vehicles get sold, the dealership uses the credit from the sold vehicles to pay back the loan. This process allows dealerships to bring in new cars regularly without using a large amount of their own money.
How Does a Flooring Company Work?
Flooring companies offer floor planning, which is like having a credit card specifically for buying vehicles. Regular credit cards are given to people from banks and let them buy things with borrowed money. The borrowed money adds interest, and you can decide to pay a little or pay off everything when the bill arrives.
Like a credit card, a flooring company lets automotive dealers borrow money to buy vehicles from auctions and other places using this money. If a dealer buys a vehicle with this money and it doesn't sell in a certain number of days, they pay a small fee. The dealer uses the money they make from selling vehicles to pay back the amount they borrowed from the flooring company.
Dealerships pay interest on the floor plan loan until the vehicles are sold. Once the vehicle is sold, the dealership is expected to repay the loan for that specific vehicle. If a vehicle remains unsold longer than a specific amount of time, the dealership might end up having to pay more in interest fees.
What Flooring Companies Does Big Valley Auto Auction Accept?
Big Valley Auto Auction accepts 10 different flooring companies:
- NextGear
- Westlake Financial
- FloorPlan Xpress
- CarBucks
- Automotive Finance Corporation (AFC)
- FlexPlus
- Auto Use
- AXLE Funding (formerly Auction Credit)
- Kinetic Advantage
- Car Financial
If My Flooring Company is Not on This List, Can I Still Buy From Big Valley Auto Auction?
If the flooring company you work with is not listed, you can still work with us. The buyer may send in a company check, cashier’s check, or submit an ACH wire transaction as a form of payment.
Some flooring companies pay for the vehicle at the time of purchase, while others wait until the auto auction receives the title. Be sure to check with your flooring company to clarify policies. Once you have completed the payment process, you're ready to take your new purchase to its new home.
Is Big Valley Auto Auction the Best Choice for Me?
Flooring companies are just 1 of 4 different payment options accepted at Big Valley Auto Auction. However, it is common for most auto auction dealers to use flooring companies as their preferred method of payment.
If this is your first time attending Big Valley Auto Auction or you’re considering using a flooring company as a payment option, you can use this article as a guide to help you prepare your payment method for your next auto auction.
Once you know what flooring companies are accepted at Big Valley Auto Auction, you can learn how to finalize your payment when attending our auction day sale.
