The discussion was initiated by Rwells369, who provided an in-depth look into the wholesale automotive industry. He highlighted the common practice of dealerships financing their inventory through an institutional line of credit. This process involves borrowing the entire wholesale purchase price, along with any associated fees, with an agreement for curtailment every certain number of days until the vehicle is sold and the loan is repaid. During this loan period, the title of the vehicle is given up to the floor planning company.

Rwells369 also pointed out the challenges within this industry, particularly the significant friction in the workflow and the issue of data being contained in silos that are not easily accessible. He emphasized that the industry often operates based on trust. With these points in mind, Rwells369 expressed an interest in engaging with a subject matter expert (SME) on the AAVE delegated credit product to explore if the use case he outlined could be applicable¹.

The discussion is an invitation for further exploration and dialogue on the potential application of the AAVE delegated credit product in the wholesale automotive industry. It highlights the need for industry-specific solutions to address the unique challenges faced by dealerships in managing their inventory financing. The outcome of this discussion could potentially lead to innovative solutions that streamline operations and improve data accessibility in the wholesale automotive industry.