Publics' floorplan pinch
Net floorplan interest for the 6 major publicly held dealership groups was a big expense for the retailers in 2019 before turning into a profit center in 2021 as rates tumbled and floorplan assistance from automakers offset interest costs. But that lift is projected to fall this year because of higher rates.
In Millions
| 2019 Q1 |
|
$-40.1 |
| Q2 |
|
$-30.3 |
| Q3 |
|
$-16.8 |
| Q4 |
|
$-2.6 |
| 2020 Q1 |
|
$-10.6 |
| Q2 |
|
$17.7 |
| Q3 |
|
$52.2 |
| Q4 |
|
$66.3 |
| 2021 Q1 |
|
$65.7 |
| Q2 |
|
$91.1 |
| Q3 |
|
$79.9 |
| Q4 |
|
$86.5 |
| 2022 Q1 |
|
$87.8 |
| Q2 |
|
$85.3 |
| Q3 |
|
$63.9 |
| Q4 |
|
$52 |
Source: Benchmark Co.
Higher interest rates and car prices, combined with a likely influx of new-vehicle inventory as the industry's supply shortages start to ease, mean floorplanning revenue for dealerships will drop — or even flip to a cost — bringing about the end of its status as an unlikely profit center.
