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In this solo episode, I tackle the critical connection between floor plan expense and net profit in the automotive industry. Picture it as a hurricane heading our way, and the storm’s name is “Inventory PTSD.” I draw parallels between unforeseen earthquakes and the current challenges dealerships face due to escalating floor plan expenses.

What We Discuss In This Episode:

We dive into the nitty-gritty of floor plan expenses and how they directly influence a dealer’s net profit. Understand the intricacies of carrying costs, interest rates, and the time it takes to sell a car.

The Rise of Floor Plan Expenses: Uncover the hidden factors contributing to the surge in floor plan expenses. From the increase in interest rates to the unexpected challenges arising from high inventory levels, we dissect the industry trends affecting dealerships.

EVs and Overpromises: Explore the impact of Electric Vehicles (EVs) on inventory management. Are dealers facing a glut due to overpromises and the shifting dynamics in the market?

Strategies for Dealers: Discover actionable steps to navigate the storm. From data-driven decision-making to optimizing inventory and seeking immediate help for sales teams, I lay out a roadmap for dealerships to weather the challenges and improve net profits.

Learn how dealers can proactively manage their inventory, turn rate, and overcome challenges by becoming a “Hurricane Whisperer.” It’s about outpacing incoming inventory and turning back the clock to the days of sustainable profitability.

As the storm clouds gather, it’s crucial for dealerships to navigate the challenges posed by Inventory PTSD. Join me in this episode to uncover the insights, strategies, and actionable steps to ensure your dealership not only survives but thrives in these challenging times.

Curious to delve deeper into these industry insights? Head over to for more episodes and valuable resources. I look forward to your thoughts and feedback. Until then, stay tuned and keep thriving in the automotive business!

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