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Inventories, Contracts in Progress and Vehicle Floor Plan Payable
 6 Months Ended
Jun. 30, 2023
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,
2023		December 31,
2022
(in thousands)
Raw materials$65,076 $68,494 
Work-in-process14,687 15,718 
Finished goods178,323 140,548 
Contracts in progress1,138 2,051 
 $259,224 $226,811 
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 June 30, 2023, the floor plan facilities bore interest at variable rates that are based on the Secured Overnight Financing Rate (SOFR) and prime-based interest rates. The weighted average interest rate for the floor plan facilities was 6.1% and 2.2% for the three months ended June 30, 2023 and 2022, respectively. The weighted average interest rate for the floor plan facilities was 5.7% and 2.1% for the six months ended June 30, 2023 and 2022, respectively. As of June 30, 2023, the aggregate capacity under the floor plan facilities was $106.3 million, of which $98.7 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, 2023.
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, 2023 and 2022, the Company recognized a reduction in cost of goods sold of $1.5 million and $1.1 million, respectively, related to manufacturer floor plan assistance. For the six months ended June 30, 2023 and 2022, the Company recognized a reduction in cost of goods sold of $2.9 million and $2.0 million, respectively, related to manufacturer floor plan assistance.