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Old 11-16-2006, 05:36 PM   #21
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2012 25' FB Eddie Bauer
Vintage Kin Owner
Virginia Beach , Virginia
Join Date: Sep 2004
Posts: 7,253
Floor Plan

Once upon a time I worked as a programmer in a bank. I was the high priestess of the commercial loan system and learned a LOT about "dealer floor plan".

Dealers don't buy their cars, trucks, etc. they finance them and pay simple interest every day the unit sits on the floor. When they sell the unit they pay off the financial institution, and hopefully take a decent profit.

In any kind of retail, you sell some stuff at full price, some at 10% sale and some you move off the rack at a loss so you can put in newer, more desirable stock. Interest at 7% on a $50K RV is about $10 per DAY... so sitting on a piece of inventory for 90 days... it's often more cost effective to dump it quickly, cheaply.

Most well established RV dealers know how to make a profit... but they make that profit on their overall sales. I saw a yellow upholstered CCD with BLUE inside the upper cabinets that the dealer was almost ready to pay me to take off the lot. Because I sew, I could have easily reupholstered the cushions, etc. and stuck down a second layer of laminate on the inside of the cabinets.. or even just used a "paint over plastic" paint to redo them.

I wanted the FB SE, so I passed on a great deal.

Paula


Hey, Vern (53 Flying Cloud) How are you? Haven't seen you post for a while. Good to know you're still out there kicking. Guess what, I'm backing up with ease and confidence.... And I thought I couldn't learn.
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