Financial institutions are starting to get extremely tight with their money, and that is putting extreme stress on dealers all over the nation.  Many of us expected that this would happen, but it seems that things are moving much faster than anyone would have anticipated.  Earlier today, I came across a tweet that absolutely floored me.  It was posted by a highly respected account known as "CarDealershipGuy", and it contained some rather ominous news…

Past 10 days have been wild:

— Capital One shut off all dealer floorplans (aka inventory lines of credit)

— USA Auto Sales shut down 39 dealerships after losing its Ally floor plan

— Wells fargo laid-off all its junior Auto loan underwriters and capped future loans

Insanity.

Is all of this true?

I had to find out.

So I started digging around, and I discovered that Capital One has indeed decided to completely get out of the "floor plan financing" business…

It's been a weird few years for the car market, and things could get weirder still. As first reported by Twitter user CarDealershipGuy and now confirmed by Automotive News reports, Capital One is out of the dealer "floor plan financing" business, and while I realize this may not sound like the sexiest of topics, it could have some interesting effects on the car market. In case you think of homes when you think of the term "floor plan," allow me to introduce the way dealers are able to hold massive inventory.