Two floorplan providers familiar to independent dealerships made major announcements this week.

AFC, a business unit of KAR Global, shared an update about Principal Pass, while Kinetic Advantage expanded its leadership team.

AFC said through a news release that more than $2 million in deferred principal payments have happened since launching its deferred curtailment program.

The company explained its product enhancement provides eligible dealers with the option to pay a $50 fee in exchange for a $0 principal payment at the time of curtailment for eligible vehicles, without a change to their existing financial contracted terms.

“Dealers need flexibility in how and when they put their capital to work. Principal Pass preserves cash flow — empowering dealers with expanded operational flexibility,” AFC chief operating officer Will Mitchell said in the news release.

“We’re proud to offer a simple, flexible and affordable solution to help our customers operate more effectively, and are thrilled to see the response from dealers since we launched it a year ago,” Mitchell continued.

The company said eligible dealers can quickly and easily enroll at no cost and with no changes to their contracted financial terms 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 apply 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.

Wes Pinson is owner of Amity Preowned and Nashville Preowned in Arkansas

“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,” Pinson said in the AFC news release. “Along with the freed-up cash, it also gives me more time to get my cars frontline ready.”

AFC looks to helps independent dealers grow their business faster by providing financing for used vehicle inventory.

Across the U.S. and Canada, AFC works with more than 12,000 dealers in the retail and wholesale automotive space as well as RV, power sports and commercial truck dealers, salvage buyers and daily rental operators and is accepted as a form of dealer payment at more than 1,300 auction sources in the same footprint.

Kinetic Advantage names 3 division vice presidents

Meanwhile, Kinetic Advantage announced that Christian Simpson joined the company as a division vice president.

The company said Kevin Garrett and Nick Ahnen also have been named division vice presidents. 

Adding a third field-based division provides additional support to dealers as Kinetic continues to expand the business that now includes more than 4,000 dealers and more than 800 inventory sourcing options.

The company now consists of three divisions and 11 regions, serving more than 70 markets nationwide.

“The newly appointed leadership team will enable us to better support our growing team and allow us to continue delivering unparalleled service to our dealers now and into the future,” Kinetic senior vice president of operations and sales Will Chandler said.

“Christian makes an ideal addition with his depth of floorplan and automotive wholesale experience. Christian will play a big part in continuing to drive our presence in the market,” Chandler added.