Inventory And Vehicle Floorplan Payable

9 Months Ended

Sep. 30, 2022

Inventory And Vehicle Floorplan Payable [Abstract]

INVENTORY AND VEHICLE FLOORPLAN PAYABLE

The components of inventory are as follows:


	September 30, 2022		December 31, 2021
New vehicles	$	699.1	$	515.1
Used vehicles	912.2		1,109.3
Parts, accessories, and other	240.0		223.5
Inventory	$	1,851.3	$	1,847.9

The components of vehicle floorplan payable are as follows:


	September 30, 2022		December 31, 2021
Vehicle floorplan payable - trade	$	609.5	$	489.9
Vehicle floorplan payable - non-trade	1,015.3		967.7
Vehicle floorplan payable	$	1,624.8	$	1,457.6

Vehicle floorplan payable-trade reflects amounts borrowed to finance the purchase of specific new and, to a lesser extent, used vehicle inventories with the corresponding manufacturers’ captive finance subsidiaries (“trade lenders”). Vehicle floorplan payable-non-trade represents amounts borrowed to finance the purchase of specific new and, to a lesser extent, used vehicle inventories with non-trade lenders, as well as amounts borrowed under our secured used vehicle floorplan facilities. Changes in vehicle floorplan payable-trade are reported as operating cash flows and changes in vehicle floorplan payable-non-trade are reported as financing cash flows in the accompanying Unaudited Condensed Consolidated Statements of Cash Flows.

Our inventory costs are generally reduced by manufacturer holdbacks, incentives, floorplan assistance, and non-reimbursement-based manufacturer advertising rebates, while the related vehicle floorplan payables are reflective of the gross cost of the vehicle. The vehicle floorplan payables, as shown in the above table, may also be higher than the inventory cost due to the timing of the sale of a vehicle and payment of the related liability.

Vehicle floorplan facilities are due on demand, but in the case of new vehicle inventories, are generally paid within several business days after the related vehicles are sold. Vehicle floorplan facilities are primarily collateralized by vehicle inventories and related receivables.

At September 30, 2022, most of our new vehicle floorplan facilities utilized LIBOR-based interest rates and a smaller portion utilized Prime-based or SOFR-based interest rates. Our new vehicle floorplan outstanding had a weighted-average interest rate of 4.7% at September 30, 2022, and 1.6% at December 31, 2021. As of September 30, 2022, the aggregate capacity under our new vehicle floorplan facilities to finance our new vehicle inventory was approximately $4.7 billion, of which $1.1 billion had been borrowed.

At September 30, 2022, most of our used vehicle floorplan facilities utilized LIBOR-based interest rates and a smaller portion utilized Prime-based or SOFR-based interest rates. Our used vehicle floorplan outstanding had a weighted-average interest rate of 4.8% at September 30, 2022, and 1.8% at December 31, 2021. As of September 30, 2022, the aggregate capacity under our used vehicle floorplan facilities with various lenders to finance a portion of our used vehicle inventory was $592.0 million, of which $571.9 million had been borrowed. The remaining borrowing capacity of $20.1 million was limited to $0.2 million based on the eligible used vehicle inventory that could have been pledged as collateral.