According to the leading floor plan financing company, AFS, independent auto dealerships should always be ready for an audit.
Irvine, California, November 15, 2017 (Newswire.com) - Through floor plan financing, independent auto dealerships can receive credit lines, allowing them to obtain inventory that might otherwise prove unaffordable. As with any line of credit, however, there are regulatory stipulations to be aware of; in fact, dealerships must be ready for the occasional audit—and in some cases, audits may be totally unannounced. AFS, a leading floor plan finance company, has released a new statement to the press, offering dealerships some audit preparation tips.
“The first thing to do is to establish a point person—someone whose job it is to prepare for the audit, and to furnish the auditor with all requested information,” AFS advises. “Make sure that the auditor knows exactly who he or she will be working with, underscoring your organization and your forethought.”
Another important tip is for dealerships to ensure they can access titles quickly and easily. “This is another way in which organization is important,” AFS says. “The last thing you want is for the auditor to think you can’t find the appropriate titles. Get a system in place that allows you to locate and retrieve any title you’re asked for, without hesitation.”
Auditors will always be on the lookout for certain red flags, AFS warns—and one of the big ones is old inventory that’s languishing on the lot. “The auditor will want to make sure you’re turning cars, so make sure you are judicious about what you buy,” AFS notes. “Don’t buy more inventory than you can sell, and have a process in place for dealing with older cars—even if it means discounting them heavily just to get them off your lot.”
A final tip from AFS: Be honest. “You’ll usually be caught if you lie—and that’s very bad news for your future financing needs,” the company notes. “Always tell the truth to your auditor, even if it means admitting that you misplaced a title, or have a car you can’t account for at the moment. Honesty is key.”
AFS provides financing services to dealerships throughout California, allowing independent dealers to build up their inventory without tying up all their finances. The company sees itself as a strategic partner, and invests in the ongoing success of each dealership it works with. More information about the company and its services can be found on the Web at www.useafs.com.
ABOUT:
AFS is a financial services company that works with independent auto dealerships throughout California, providing a full range of offerings that include credit lines, floor planning, and beyond. AFS can also provide dealerships with access to top-of-the-line marketing and legal services. More information about the company can be found online at www.useafs.com.
Source: Auto Finance Solutions (AFS)
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