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When Floorplan Interest Eats the Deal

A deal can look profitable on the sales log and still produce a disappointing economic result. One reason is that the gross is often discussed as though the vehicle arrived yesterday, while the funding cost has been accumulating for weeks or months. Floorplan does not normally attract the same attention as discount because it is less visible to the customer and often sits outside the salesperson’s immediate view. But time turns financing into a vehicle-level cost that management cannot...