03-14-2015, 01:23 AM
(03-13-2015, 10:22 PM)The ferret_imp Wrote: 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.
That's basically the situation that my local dealer explained to me about his shop. He has to borrow money to get and keep them on the floor.
After he explained that to me, the joke about the Honda 'DN-01' being an acronym for: 'Do NOT order 1' made more sense...