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This excerpt taken from the AN 10-K filed Feb 17, 2010. New Vehicle Inventories Our new vehicle inventories were $1.1 billion or 54 days supply at December 31, 2009, as compared to new vehicle inventories of $1.5 billion or 83 days supply at December 31, 2008. We reduced our new vehicle inventory to 35,996 units at December 31, 2009, from 50,585 units at December 31, 2008. The following table details net new vehicle inventory carrying cost, consisting of new vehicle floorplan interest expense net of floorplan assistance earned (amounts received from manufacturers specifically to support store financing of new vehicle inventory). Floorplan assistance is accounted for as a component of new vehicle gross profit.
2009 compared to 2008 The net new vehicle inventory carrying benefit (new vehicle floorplan interest expense net of floorplan assistance from manufacturers) was $13.9 million in 2009, as compared to a net new vehicle inventory carrying cost of $11.9 million in 2008. The increase in the net new vehicle inventory carrying benefit of $25.8 million during 2009 is due to a decrease in new vehicle floorplan interest expense primarily due to lower short-term LIBOR interest rates and lower average vehicle floorplan payable balances, partially offset by a decrease in floorplan assistance due to lower new vehicle sales and a decrease in the floorplan assistance rate per unit. 2008 compared to 2007 The net new vehicle inventory carrying cost (new vehicle floorplan interest expense net of floorplan assistance from manufacturers) decreased $15.6 million in 2008, as compared to 2007, primarily as a result of a decrease in new vehicle floorplan interest expense due to lower floorplan interest rates, partially offset by a decrease in floorplan assistance due to lower new vehicle sales and a decrease in the floorplan assistance rate per unit.
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