[GWN7]

The inventory is called "floor planning" and yes the profits are that great that they can sit there for years and still make money.

Floor planning is the same in Automotive, Boats or RV's. The dealer gets his inventory at cost plus for a certain number of months of the year and the rest is free (the manufacture pays the interest on the other months). There are companies that charge the interest and they have to check inventory to see that the dealer pays for the unit when it is sold. All is done via contracts that give the manufacture first right of claim on the unit sitting on the lot. Basically the manufacture (or their agent) own the inventory till it is sold to end user. This way if the dealer goes bankrupt the manufacture is protected. How often the dealerships inventory is checked depends on their financials.