Used Car Dealers: 5 Schedules That Separate Floor Plan and MCA Claims

The lot holds forty cars while the dealer holds title to eleven, and the MCA demand describes all forty.

A used car operation facing competing claims should match each vehicle to its papers before deciding who receives the next payment. The schedule alone cannot resolve what the agreements have not settled.

Vehicle Schedules and Ownership Records

Prepare a vehicle level schedule naming ownership and acquisition documents for each unit. Owned inventory, consigned vehicles, and units under financing arrangements belong in distinct categories.

Attach the account statement with the payment history. Presence on the lot proves display, not ownership, and the floor plan documents should be read for the obligations that attach when a unit sells; no title can supply a universal deadline or payment rule for every lender (physical counts disappoint more often than schedules do).

Investigate any gap between the financing schedule and the physical count. A missing or substituted vehicle deserves an explanation before the dealer certifies the list. The lot was full. The floor plan was in default.

Collateral Descriptions and Proceeds Claims

The MCA agreement, if we are being precise, may describe purchased receipts while separately granting a security interest. Counsel should identify the actual terms before treating a broad financing statement as a claim to every vehicle on the lot.

New York rules on collateral after disposition address continuation of a security interest and attachment to identifiable proceeds, subject to exceptions. The provision announces no universal winner between a floor plan lender and an MCA provider.

Priority deserves a review of jurisdiction, collateral descriptions, and the relevant agreements together. It should not be inferred from the amount advanced or from the fact that one creditor financed the acquisition of inventory.

Where the funder points to particular sale proceeds, obtain the accounting behind the assertion (dealers who opened their books to the first caller, before counsel had reviewed the demand, have spent months reconstructing what those early disclosures conceded). Trace each sale to its payment without treating every deposit as proceeds of the same vehicle.

A filing and the underlying agreement perform different roles. The statement alone resolves neither the balance claimed nor any question of enforceability. Counsel should also examine any consent or arrangement between creditors; a general awareness that the lender knew of the advance rarely proves the terms of an enforceable deal, at least on the papers we have seen; that is where these disputes usually settle.

Customer Installment Contracts

For a lot holding customer installment contracts, identify who owns the payment rights and which agreements touch them. Retaining the paperwork does not establish a right to transfer or pledge the account.

The customer contract can raise consumer law questions though the dealer MCA is commercial financing. Those questions require the documents with qualified advice. A demand touching customer payments deserves review before any collection instruction changes; obtain the exact notice and the accounts it names.

Do not tell customers that one creditor now owns every balance. Preserve payment records at the account level, keep any customer dispute apart from the MCA negotiation, and build the forecast from collectible amounts the records support. The dealer’s need for cash does not decide what the customer owes.

Sale Proceeds and Settlement Budgets

Weeks after the first missed curtailment, the gross price of a sold unit still looks like a solution. It is not cash until acquisition financing, transaction expenses, and other sale obligations have been subtracted.

Calculate before committing proceeds. Reducing inventory produces money while shrinking future sales capacity, and a continuing operation should price the replacement units it needs. A voluntary transfer of stock resolves nothing unless the agreement states the credit applied with the treatment of any remainder.

Keep each payoff quotation with its effective date. Figures age quickly on a lot that keeps selling.

Releases and Post Settlement Receipts

The settlement ends the negotiation. The releases end the liability.

Delancey Street can assess the MCA portion through a merchant cash advance settlement review, beginning with a free and confidential discussion. Bring the MCA documents with a budget showing the floor plan commitments. Individual guarantees and customer payment directions may need separate provisions.

The company is a settlement provider, not a law firm. Independently licensed counsel handles priority disputes with customer contract questions. No MCA discount alters the floor plan lender rights by itself. I am less certain about the intercreditor position than this section might suggest.

And New York termination rules should be addressed as their own step: payment alone does not authorize the debtor to terminate a filing without the required authority and procedure. Assign each document and each filing to a responsible party. Funders who have collected for months tend to treat the final paperwork as an afterthought, which is precisely when afterthoughts become expensive.

Most dealers expect the lot to fund the exit. It rarely funds the whole of it. I understand the arithmetic. Consultation is where this conversation begins, and the objective is a store that can sell vehicles without casting doubt over every incoming payment, with post settlement receipts assigned in writing before they arrive.