If you transfer cars to another dealer and wait to get paid, Y0U need a valid floor plan to protect
your interest. Not having a valid floor plan lien can subject you to possible DMV violations and
potentially surrender of title without payment.
When you sell vehicles wholesale and “hold” the title until paid, or when you assume the
inventory of a dealership due to a death or closure of a dealership and can’t pay for it all at once,
you need a floor plan.
S&P Law provides a unique service for dealers to protect their interest. NC DMV and state law
has determined a vehicle cannot be offered for retail sale unless the title is in possession of the
selling dealer OR is held by a floor plan lender.
NC statute also holds that a Trust or Estate must transfer title from a Sole Proprietor Dealership
to the Estate and has to incur all tax and title fees for those transfers.
Compounding the urgency, NC DMV has also determined titles held by a Dealership that is no
longer in active business, has had their license suspended, or the Sole Proprietor has died, have
minimal time to transfer those titles before they become void. Sometimes only 10 days before the
Dealer number is voided and title transfers are rejected.
An in-house floor plan can help legally transfer title to another dealer WITHOUT surrendering title.
to honor a hold check or “forgets to pay” after delivering a consumer a car
another dealer without releasing title
all vehicles) and the associated taxes and fees by forming a floor plan and creating a
financial instrument held by the estate to transfer the inventory and hold title until paid
S&P Law has created contracts agreements that are proven to meet compliance requirements for NC DMV, NC Sec of State, and UCC requirements for:
Recently multiple dealers have utilized the services of S&P Law to create an In-House
floorplan program. As of Nov. 2019 those clients have safely transferred over $12 million dollars
thru their floor plans, and 2 estates avoided over $250 thousand dollars in tax and title transfer
Contact Steve Stevenson to schedule an appointment to see if an In-House Floor plan is the right method to protect your interest and minimize cost and liability.