At the height of the COVID-19 pandemic, when new vehicle inventory remained at alarmingly low levels, Ford dealers received less money to cover floorplan costs, which is a type of inventory financing used for big-ticket items, as dealers don’t purchase or own new vehicles on lots outright. However, with that situation improving, the Ford Dealership Floorplan Assistance Program received some updates in June 2024 that incentivized Ford dealers to turn inventory more quickly. Now, Ford dealers are set to get more floorplan assistance this coming spring, too.
According to Automotive News, Ford dealers will receive more floorplan assistance starting this April, a move that comes as inventory carrying costs have increased as of late. To compensate, FoMoCo will provide its dealers with 0.25 percent more floorplan credit on ICE models through Q2 2025 – an upfront credit worth 1.25 percent of the sticker price on most of the company’s ICE models, while EVs will stand pat at one percent. Additionally, Ford intends to review these figures on a quarterly basis moving forward.
“The biggest factor we’re hearing from dealers is not days’ supply, it’s interest rates,” said Rob Kaffl, Ford’s director of U.S. sales. “Before the election they were expecting more cuts, and those cuts haven’t come through. The financial health of our dealer network is one of our major priorities, so this quarter-point of supplemental is being used to address that.”
Dealers were informed of this change at this year’s National Automobile Dealers Association (NADA) Show, along with a host of other interesting developments. Those include reports that the Ford Escape remains on track for discontinuation following 2025, which prompted concerns from some dealers in attendance – even as the automaker plans to ramp up production of its entry-level models, bring back cheaper base trims, and launch new, more affordable products in an effort to accommodate consumers who are seeking more affordable options.
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