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Not all dealerships are in a position to lower their prices. Smaller, independent dealerships often operate on thin margins and carry substantial debt. When the price of a vehicle drops, these dealerships can find themselves affecting their bottom line considerably. If a small dealer is saddled with high inventory costs and cannot sell these vehicles for a profit, they face a daunting dilemma: either absorb the loss or risk going out of business. Many of these smaller dealers utilize a financing model known as "floor planning," which places them at risk of owing more than the vehicles are worth, preventing them from reducing prices without incurring significant losses.