Interesed

I was always under the impression that a dealer would start losing money every month that a car continues to sit on their lot. Don't they have to pay taxes on their inventory every month?

In these hard times, wouldn't it make sence to start moving the vehicle instead of holding out to get the best sale?

csmeance

I think they pay interest for the cars sitting on their lot...

Colin

It's called Flooring Plans. I do not know the details of our plans but when I was in the consumer electronics biz, we had 90 days interest free to sell the product. After that, interest was charged. This is why you wanted to sell the oldest TV first and why you rotate your stock.

To the OP, dealers are not going to receive any significant new inventory till May or June at the earliest. If you had a business and you 'blew out' all your inventory now at no profit, and there was nothing coming in for months, then you would insure that you will no profit now AND later. Yet, you still have to keep a staff, keep the lights on, A/C on (or heat for those in colder climates), pay health care and all the other things associated with running a business.

KeithL

I thought there was going to be a TL production run in March? How long does it take to reach dealers?

Colin

They are producing about 1000 total cars. 65% of these will be TLs. So 650 cars split among 260 dealers split among 5 trim levels, 8 colors, 4 interiors.... ok you get the idea. Its going to be 1 or 2 cars per dealer but we didn't get allocated any. Cars usually arrive about 30 days after their production date. so cars made in March should arrive in April.