High interest rates for vehicles delivered too early threaten liquidity - a problem for car dealers.

High interest rates for vehicles delivered too early threaten liquidity - a problem for car dealers.

First the new cars didn't arrive, now they're being delivered too early. This problem affects the car trade, which has struggled with long order times over the past two years due to disrupted supply chains. But now delivery times are shortening and manufacturers are sometimes delivering vehicles earlier than agreed. This leads to financial difficulties for dealers as they have to temporarily store and finance the vehicles while their customers' leasing contracts are still running. The car banks charge interest of six to ten percent for the interim financed vehicles, compared to the previous two to three percent. This high interest rate burden can push the limits of dealers' liquidity, especially for large customers and fleets. Financial problems also arise in cases where the vehicles are invoiced but cannot be delivered. The increased prices for electric cars and high inflation are further increasing the financial burden. However, there are agreements between some retailers and manufacturers that guarantee retailers reimbursement of interest charges in the event of significant deviations from the agreed delivery date. Nevertheless, due to the relaxed delivery problems, car dealers have to concentrate again on optimizing their inventory.
According to a report by www.kfz-betrieb.vogel.de