03-13-2015, 10:22 PM
JPT I was in the motorcycle business for 17 years and motorcycle dealers must floor plan too. No one can afford to just pay for all that inventory up front. The bank carries the note on the units and charge interest each month that it sits there. After a certain amount of time, a dealer must go ahead and pay for the unit. The bank won't carry the unit forever on floor plan and the dealer doesn't want to be so deep into that he can never break even on it. At least thats how it worked 25 years ago.