Having spent 35 years in the automotive industry, it is my experience dealer principals are generally concerned about “being in debt,” though debt, when managed properly, can be a powerful tool for dealership principals to enhance liquidity and profitability. Leveraging debt allows dealerships to access capital needed for growth, manage cash flow effectively, and take advantage of investment opportunities without diluting ownership.
Let’s look at which types of dealership assets are relevant and how to effectively leverage them:
Inventory
Inventory is one of the most significant assets for automotive dealerships. It includes both new and used vehicles held for sale. Leveraging inventory often involves utilizing…
