Canadian car dealerships are grappling with increased floorplan expenses and are strategically managing their inventory as consumers wait for favorable rates, particularly following NextGear Capital’s departure from the market which limited financing options. Dealers are taking a cautious approach to stocking up on vehicles in Canada, partly due […]
FAQ
1. What are floorplan costs?
Floorplan costs are the expenses incurred by car dealerships to finance their inventory of vehicles. This includes costs for storing, maintaining, and insuring the vehicles on their lots.
2. How do floorplan financing options impact dealerships?
Having fewer floorplan financing options can make it more challenging for dealerships to manage their inventory and secure vehicles for their lots. It can also affect their ability to offer competitive pricing to consumers.
In conclusion, Canadian auto dealers are adapting to higher floorplan costs by carefully managing their inventory and navigating the changing financing landscape. By staying strategic and responsive to consumer demands, dealerships can weather these challenges and continue to serve their customers effectively.
