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Inventories, Contracts in Progress and Vehicle Floor Plan Payable
 6 Months Ended
Jun. 30, 2022
Inventory, Net of Allowances, Customer Advances and Progress Billings [Abstract]  
Inventories, Contracts in Progress and Vehicle Floor Plan Payable INVENTORIES, CONTRACTS IN PROGRESS AND VEHICLE FLOOR PLAN PAYABLE
Inventories and contracts in progress consist of the following:
As of
June 30,
2022		December 31,
2021
(in thousands)
Raw materials$65,049 $54,944 
Work-in-process15,835 11,506 
Finished goods97,137 72,796 
Contracts in progress259 2,225 
 $178,280 $141,471 
The Company finances new, used and service loaner vehicle inventory through standardized floor plan facilities with Truist Bank (Truist floor plan facility) and Ford Motor Credit Company (Ford floor plan facility). The Truist floor plan facility bears interest at variable rates that are based on Secured Overnight Financing Rate (SOFR) plus 1.19% per annum. The Ford floor plan facility bears interest at variable interest rates that are based on the prime rate, with a floor of 3.5%, plus 1.5% per annum. The weighted average interest rate for the floor plan facilities was 2.2% and 1.2% for the three months ended June 30, 2022 and 2021, respectively. The weighted average interest rate for the floor plan facilities was 2.1% and 1.2% for the six months ended June 30, 2022 and 2021, respectively. As of June 30, 2022, the aggregate capacity under the floor plan facilities was $70.9 million, of which $45.7 million had been utilized, and is included in accounts payable and accrued liabilities in the Condensed Consolidated Balance Sheet. Changes in the vehicle floor plan payable are reported as cash flows from financing activities in the Condensed Consolidated Statements of Cash Flows.
The floor plan facilities are collateralized by vehicle inventory and other assets of the relevant dealership subsidiary, and contains a number of covenants, including, among others, covenants restricting the dealership subsidiary with respect to the creation of liens and changes in ownership, officers and key management personnel. The Company was in compliance with all of these restrictive covenants as of June 30, 2022.
The floor plan interest expense related to the vehicle floor plan arrangements is offset by amounts received from manufacturers in the form of floor plan assistance capitalized in inventory and recorded against cost of goods sold in the Condensed Consolidated Statements of Operations when the associated inventory is sold. For the three months ended June 30, 2022 and 2021, the Company recognized a reduction in cost of goods sold of $1.1 million and $0.8 million, respectively, related to manufacturer floor plan assistance. For the six months ended June 30, 2022 and 2021, the Company recognized a reduction in cost of goods sold of $2.0 million and $1.4 million, respectively, related to manufacturer floor plan assistance.