Further, if a manufacturer were to stop paying for a portion of the floorplan interest when the vehicle is sold, then the effective interest rate may go up even more dramatically for lots with inventory over N days old.

Since Ford’s plan to prioritize direct sales has made news recently, it seems plausible they will seek some means to limit existing dealer inventory.

GM went through a dealer culling after the government bailout to strengthen the remaining stores. The Covid shock, it appears, may permanently cull inventory levels across the board and (optimistically) have the same end.