Quote:
Originally posted by Wayne at Pelican Parts
Easy - the bank owns the inventory. Many car lots (and even warehouse companies) are like this too...
-Wayne
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Actually Wayne that's not always the case. Many times the manufacturer owns them and the dealers simply provide the showroom. This is also common for heavy equipment and big rigs. The carrying costs would simply be too high for the dealer to run on a line.
So when the dealer sells one they forward the % of proceeds to the mfg. There are time limits/penalties involved to incentivize the sale of the older units though.