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To: Patrick Slevin who wrote (15946)12/2/1998 9:52:00 AM
From: David Semoreson  Read Replies (1) | Respond to of 17305
 
Patrick,

Actually, we pay in full but get a credit to pay for some interest. The "holdback" or "flooring credit" or "interest support" pays for somewhere between 2 and 3 months depending on rates. So you are correct about turning the cars quickly being important to profitability, but not relevent to financing structure.

FYI, I have no knowledge of domestics. I have 2 dealerships in Toronto, Canada: Acura & Nissan.

** David