What is Dealer Stocking Finance?
A stocking facility is a revolving line of credit that allows a prestige car dealer to finance vehicle stock. As cars sell, the advance is repaid and the line becomes available again. Interest is charged on drawn balances only, making it capital-efficient for dealers with strong stock turn.
Typical Facility Terms
| Parameter | Typical Range |
|---|---|
| Facility size | £200,000 – £5,000,000+ |
| Advance per vehicle | 80–90% of CAP Clean / book value |
| Interest rate | Base + 4–6% (variable) |
| Stocking period | 90–180 days per unit |
| Lenders | Evolution Funding, Shawbrook Bank |
Worked Example: £500,000 Stocking Facility for Prestige Dealer
| Parameter | Detail |
|---|---|
| Dealer type | Independent prestige (Ferrari, Porsche, McLaren) |
| Facility limit | £500,000 revolving |
| Average stock value | £100,000 per unit |
| Units funded at once | Up to 5 |
| Advance rate | 85% of book value |
| Daily interest rate | 0.025% (approx. 9% pa) |
| Average stocking period | 45 days per unit |
| Monthly interest (fully drawn) | approx. £3,750 |