Four Reasons Why 2000+ Domestic Car Dealers Had to Go

Posted by Classic Cars Expert

Jun 30

1. Floor plan costs The more dealers you have, the slower the inventory turn. The slower the turn, the longer it takes to repay the debt. The longer it takes to repay the debt, the more money that’s required. By cutting dealers, the manufacturers cut GMAC’s capital requirements, which run into the billions. 2. Inventory Excess inventory ties up capital [...]
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