239 - Used Subaru Vehicles

Current Assets

Other Inventories

Synopsis

Account 239

Debits

Credits

  1. The actual dealer cost of all used Subaru vehicles taken in trade or purchased, including related charges e.g., fees paid to outside buyers, auction fees, etc.

  2. The internal labor and material amounts to recondition Subaru vehicles in inventory.

  1. The inventory value (including reconditioning costs) of used Subaru vehicles that are sold or transferred to company use.

  2. The amount of write down resulting from re-appraisals.

 

 

Remarks:

Reconditioning costs should be carefully estimated when the unit is purchased.  Proper preparation of the used vehicle appraisal at the time the unit is appraised will aid in determining what reconditioning is required and its relative costs.

 

Actual reconditioning costs of each unit should be compared with the estimated reconditioning cost made at the time of the original appraisal.  Large variances should be reviewed by the dealer with the used car manager, the appraiser, and the service manager or used car reconditioning manager.

 

A subsidiary used inventory should be maintained and mark-downs recorded.

 

A monthly physical inventory of used vehicles with full reconciliation to the inventory records is highly recommended.

 

The portion of used Subaru vehicles in inventory aged 31 days or greater (dollars and units) should be combined with used other make vehicles in inventory aged over 30 days and shown as a memo in the appropriate spaces next to used vehicle inventories on page 1 of the Subaru Financial Statement.

Note: