Originally Posted by HaneyMotorsport.Com

How it works today, I'm not sure? But, back in the day, dealers did not have to "buy" vehicles outright from the manufacturer. They paid what is called "flooring". Basically it is short term financing of the new inventory.

When the credit crunch really hit, GMAC stopped all GM dealer financing.....flooring. At this point, dealers have to pay for the new cars on the lot! (or if possible, find finance somewhere else)

I posted awhile ago on Ford closing dealers. It has been going on for some time. An interesting tidbit...... A friend's cousin was a top accountant at Ford, retired a few years ago. Ford called/hired him back to head up closing of dealers across the country. As what exactly happens to the cars, not sure. Parts inventory go back to Ford or if the dealer has a sister owned store, goes there. Shop equip. , racks, lifts, etc. are sold at auction.

Check this out.........The world has WAY to many new cars right now!