Balancing Inventory Demands with Credit Line Limits 

 The problem of balancing inventory with dealership credit line limits isn’t new, but it is a growing concern in the current environment. Rising rates, shifting product demand, the flood of used cars coming into the market, unpredictable sales levels – it’s a real challenge for dealers to keep their lots stocked with the right level and types of autos.  
KeyBank Dealership Finance’s “Keeping your Dealership in Balance” offers practical advice how to manage inventory and credit lines. The paper provides an overview of the changing market for auto sales, including an assessment of the added risks associated with taking OEM production based on dealer incentives. Several straightforward best practices are recommended to help dealers avoid credit overline situations and implement disciplined inventory management practices.

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