Forum Discussion
MFL
Sep 30, 2014Nomad II
I am not sure how RV dealers operate. Other types of dealerships, that I was involved in years ago, had floor plans through the bank.
Your on lot new units were bank owned, and you only paid interest, after an agreed time (usually 30 days), on new unsold units.
When you sold a new one, you had to pay bank in full. When you took a trade, you owned it, no floor plan. So when you had a large used inventory, your operating money was tied up.
To take a late model, expensive trade, will use up operating money quicker.
Jerry
Your on lot new units were bank owned, and you only paid interest, after an agreed time (usually 30 days), on new unsold units.
When you sold a new one, you had to pay bank in full. When you took a trade, you owned it, no floor plan. So when you had a large used inventory, your operating money was tied up.
To take a late model, expensive trade, will use up operating money quicker.
Jerry
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