floor plan interest
n.— «Dealers borrow money to pay for the cars that sit on their lots. For every day that the cars sit unsold, they accrue more of what the industry calls “floor plan” interest charges. According to the National Automobile Dealers Association, rising interest rates meant that dealers paid an average of about $160 in floor-plan costs for every vehicle they sold in 2006, roughly double the year before. Thus, dealerships want fewer cars on their lots because it means they are spending less money.» —“Are Model-Year Closeouts a Good Buy?” by Jim Henry WTVF-TV (Nashville, Tennessee) Sept. 26, 2007. (source: Double-Tongued Dictionary)
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