By SCBIZ Staff

The Raceway Automotive Group announced an $11 million investment as the group assumes complete ownership of its inventory at its four locations in the Pee Dee region. 

In essence, the majority of automotive dealerships rely on outside lines of credit through captive financial sources, such as Ford Motor Credit for Ford dealers, to finance their dealership vehicle inventory. On a monthly basis, interest is then paid to these captive financial sources/lenders based on the dealership’s car inventory balances on hand.

The Raceway Automotive Group has elected to leverage its strength as the largest privately held automotive group in the Pee Dee to eliminate the credit lines and finance their own inventories, which equates to about an $11 million investment.

“We made the decision to make this capital investment into the Pee Dee community to not only take advantage of the financial savings it creates for our business but also, and more importantly, to utilize the financial savings to create more jobs and expand on our business opportunities in the Pee Dee,” said John Isgett, president of the Raceway Automotive Group.

The interest savings, generated by internally financing their own inventories, is expected to allow the Raceway Automotive Group to expand into different market and product areas as it relates to the automotive industry. In turn, this move could create new jobs in the Pee Dee and provide for a per vehicle reduction in expenses—resulting in more competitive vehicle pricing.

The Raceway Automotive Group is comprised of about 100 Raceway associates at its four Raceway locations in the Pee Dee.