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Inventories, Contracts in Progress and Vehicle Floor Plan Payable
 12 Months Ended
Dec. 31, 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 December 31
(in thousands)20222021
Raw materials$68,494 $54,944 
Work-in-process15,718 11,506 
Finished goods140,548 72,796 
Contracts in progress2,051 2,225 
 $226,811 $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). At December 31, 2022, the floor plan facilities bore interest at variable rates that are based on Secure Overnight Financing Rate (SOFR) and prime-based interest rates. On July 5, 2022, the Company entered into an amended agreement with Truist to increase the capacity under the Truist floor plan facility to $80.0 million. The weighted average interest rate for the floor plan facilities was 3.2%, 1.1% and 1.7% for the years ended December 31, 2022, 2021 and 2020, respectively. As of December 31, 2022, the aggregate capacity under the floor plan facilities was $106.3 million, of which $69.8 million had been utilized, and is included in accounts payable and accrued liabilities in the Consolidated Balance Sheet. Changes in the vehicle floor plan payable are reported as cash flows from financing activities in the 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 December 31, 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 Consolidated Statements of Operations when the associated inventory is sold. For the years ended December 31, 2022, 2021 and 2020, the Company recognized a reduction in cost of goods sold of $4.6 million, $2.7 million and $2.1 million, respectively, related to manufacturer floor plan assistance.