Tips For Managing Automotive Liquidity Issues at Dealerships

Are You Experiencing a Car Dealer Liquidity Crisis

Is your dealership experiencing liquidity issues? Many automotive dealers across the United States face a financial situation where they lack cash. At the same time have hard-to-sell vehicle assets sitting on their lot, collecting dust that could be quickly converted to currency if and when sold.

In recent years, the problem that some dealers are facing is the inability to sell certain vehicles that have been in inventory for too long. The faster you can sell a car and bring in another in-demand model, the more cash your dealership will have in the bank. Money is literally within reach; however, until the vehicle sells, it’s cutting into your bottom line.

Cash Flow Loans For Liquidity

Dealers must be cautious not to use their short-term cash funds for long-term financial commitments. Automotive dealerships experiencing liquidity issues may face challenges securing loans from banks or financial institutions to bail them out. While hard money loans and private debt funding are available, these can be expensive choices for recovery over finding resources where vehicles taking up space can be quickly sold for a profit.

Alternative Ways To Solve Liquidity Issues At Your Dealership.

Vehicles that sit around are the main culprit for liquidity problems. Dealerships looking for ways to get rid of their unwanted inventory are turning to car sales apps like InfoRide® to get rid of their stocks faster. Unfortunately, your car lot may be stuck with cars, trucks or SUVs that no one wants. For more information about selling vehicles on InfoRide®, don’t hesitate to get in touch with the Worth Advertising team.

Combat Dealer Inventory Liquidity Issues

Thankfully the automotive industry is beginning to turn things around after all of the issues Covid-19 created for manufacturers and dealerships, which was a significant cause for the current liquidity issues many dealers face.

During these turbulent times, dealerships were forced to deal with liquidity issues to make ends meet. As OEMs ramp up productions and more consumers return to work, many of the liquidity problems will resolve themselves, and those that don’t will require some creative thinking to recover from.