GM needs cash, lots of cash. There are thousands of cars sitting on car dealership lots. Did GM get paid for these cars already? If so by who? The dealership? If so, then the dealership is making payments for all the cars sitting on his lot. That seems expensive for the dealer so wouldn't he want to get them sold ASAP? Even the ZR1's?
Under "most" circumstances, the dealership gets the car and GMAC holds the notes. The dealer pays GMAC monthly interest until the car is "sold".
Once you buy the car, the note is paid, GMAC pays GM for the car and the "profit" is credited to the dealer.
Where stores run into problems is when they play with the payoffs to GMAC. Say Chase financed the car, and the dealer pockets the "loan" (and the interest) for 30-60 days before they pay GMAC...it's where some dealers have been caught and their franchise closed by GM.
I could be wrong here but the way I understand it is GM has been paid in full. GMAC holds the loans to the dealers until sold. Either way, it hurts GM to have unsold cars because the dealers are not ordering any more.
Yes, GM is paid for the cars they sell to the dealers by the dealer. You get better deals on cars that sat longer on dealer's lot. Dealer doesn't want to keep paying interest on the loan for cars that are just sitting on their lots.
yeah i had floorplans. basically its kinda a line of credit. i buy a vette for however much and at the end of 30 days i have to pay a percentage of what i borrowed. then at the end of 60 days i have to pay again and so on. its so the dealer doesnt have to dip into its own cashflow. Great when cars are slod in the first 30 days and i dont have to pay any fees. after that it starts to suck. now thats mainly on used cars but i believe some new cars are the same way.
Corvette Store
If a car is on the lot, who got paid what?
The dealers still pay a percentage until the cars are sold.
