The car financing business plan revolves around the current credit markets and the ability of the consumers you target to qualify for your loans without jeopardizing the financial stability of the financing business. If your financing operation is already underway and you have positive revenues to show, consider making a past performance table (a collection of balance sheets and P&Ls from up to three years past), and couple this with a company summary giving milestones and hurdles to date. If you are a pure start-up, note whether you will be partnering with an automotive dealership or acting as a freelance lender/broker. Beyond that, these are some of the most important details for your plan to cover:
• What are the prevailing rates/terms you plan to offer?
• How will you meet and interact with potential customers?
• What are your primary marketing channels?
• Which businesses do you compete with most directly?
• Who besides yourself will staff the management team?
The car financing business plan also needs to show the state of the industry currently and the state it's projected to be in for the next five years (approximately). The automotive industry is always in flux, but there are definable trends and some market forces that you can speak about intelligently to show your readers (be they lenders or potential investors) what you think is coming down the line. The pro forma model you will need should show revenues, expenses, and a break-even point as well as your Year 3 or Year 5 net profit estimate for valuation purposes. If you want assistance with the financials or feel lost on the market analysis, turn to MasterPlans. We have the industry experts on staff to deliver you an exceptional plan in as little as two weeks. Call toll-free: (877) 453-2011.
