Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 3 . Quantitative and Qualitative Disclosure About Market Risk
Market risk is the risk of economic losses due to adverse changes in financial market prices and rates. Our primary market risk has been interest rate risk. We do not have material exposure to commodity risk.
Interest Rate Risk
As of September 30, 2020, we had an outstanding balance under the 2020 Vehicle Floorplan Facility of $249.0 million. The 2020 Vehicle Floorplan Facility bears interest at a rate equal to the 1-Month LIBOR rate applicable in the immediately preceding month, plus a spread of 425 basis points. A hypothetical 10% change in interest rates during the periods presented would result in a change to interest expense of $0.2 million and $0.6 million for the three and nine months ended September 30, 2020, respectively.
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