Cash Flow Management – Your Dealership’s Lifeblood
Let’s not sugar-coat this one, cash flow is the most important area of operational control in any dealership. It’s also one of the most misunderstood and neglected. Too often, dealership leaders are told they’re profitable, only to feel constantly under pressure with bills, floorplan limits, and payroll looming. As we’ve seen time and time again: you can be profitable and still go backwards, because profit on paper, isn’t cash. In this market, cash flow stress is magnified. Receivables from manufacturers are slowing. Warranty and bonus payments are delayed. New vehicle deliveries are getting stuck throughout your delivery pipeline. Meanwhile, costs keep rolling in, wages, rent, interest, marketing, the list goes on. I always likened this to being stuck in traffic in a taxi and the meter never stops running; the costs just keep piling up and you aren’t making forward
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