For independent dealers, maintaining a healthy cash flow isn’t just a good practice—it’s essential. It’s what allows dealers to acquire inventory, grow dealership teams, and grow their business. But in an industry that requires you to spend money to make money, it can sometimes be tough to build up that rainy day fund. That’s why an AFC floorplan also includes Principal Pass —an innovative solution designed to give you more control over your finances and maximize your dealership’s potential.*
What is Principal Pass?
Principal Pass is an enhancement to an existing AFC floorplan that allows you the option to defer your principal payments on eligible units at the time of curtailment. For a small $50 fee per unit, you can delay these payments, freeing up valuable cash to invest in other areas of your business.
>>BONUS RESOURCE: Click here to learn “What is a Curtailment?”
We firmly believe that dealers like you should be in charge of how you put your capital to work–after all, it’s your money. That’s why you have complete control over which eligible units you choose to use Principal Pass.
How Does Principal Pass Work?
The beauty of Principal Pass is in its simplicity. When a curtailment is due on an eligible unit, simply log in to your AFCDealer account and click to activate Principal Pass.
You’ll still be responsible for accrued interest and fees, but the principal payment will be deferred until the unit sells or the next curtailment, whichever comes first. The $50 Principal Pass fee is assessed at the time of the decision but isn’t due until the next curtailment or payoff.
Eligible dealers can quickly and easily enroll at no cost by contacting their local AFC branch. Once enrolled, dealers are able to log on to their account at autofinance.com and choose the specific eligible units to which they would like to use Principal Pass. The program is available in the U.S. for eligible dealers in good standing on non-specialty vehicles with a total flooring value of up to $20,000.
Who Can Benefit from Principal Pass?
Principal Pass is a valuable tool for all AFC dealers and can be added to any existing AFC floorplan. Enrolling is simple and you always have the freedom to choose if and when to use it.
That said, there are some specific instances where Principal Pass could be a big help to dealerships, such as:
- Temporary cash flow problems
- Seasonal sales fluctuations
- Need for more inventory flexibility
- Dealers with lower-cost inventory
But don’t take our word for it. We asked Wes Pinson, owner of Amity Preowned in Nashville Preowned in Arkansas, about his experience using Principal Pass–and we were thrilled to hear what he had to say.
“I love Principal Pass. By letting me skip my principal payment and only pay interest and fees, Principal Pass increases my cash flow a lot. Along with the freed-up cash, it also gives me more time to get my cars frontline ready.”
Cash flow is king with Principal Pass from AFC
With Principal Pass, you’re not just managing your cash flow—you’re optimizing it. You’re taking control of your finances, seizing opportunities, and propelling your dealership toward greater success. It’s a simple, yet powerful tool that can make a significant difference in your bottom line.
If you’re ready to experience the benefits of Principal Pass for yourself, reach out to your local AFC branch today. We’re here to help you take charge of your cash flow and unlock the full potential of your dealership. Remember, at AFC, your success is our priority.
Try Principal Pass on your existing floorplan today! Don’t have a dealership floorplan yet? Apply now!
* Disclaimer: Descriptions of AFC floorplans are for illustrative purposes only. Terms of AFC floorplan financing are subject to a final written agreement acceptable with AFC. AFC does not guarantee any results for floorplan financing and examples are for illustrative purposes only. Dealers should consult their own advisors to make independent business decisions regarding floorplan financing.
