240 - Used Vehicles - Other

Current Assets

Other Inventories

Synopsis

Account 240

Debits

Credits

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

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

  1. The inventory value (including reconditioning costs) of used other make vehicles sold, transferred to company use, or junked or scrapped.

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

 

 

Remarks:

Reconditioning costs should be carefully estimated when the unit is accepted.  Use of a used vehicle appraisal form will aid in determining what reconditioning is required and its relative costs.

 

Actual reconditioning costs of each used 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 Vehicle Inventory should be maintained, and mark-downs recorded.

 

Used vehicles should be physically inventoried each month-end, reconciled with the inventory records and the balance in this account.

 

The portion of used other vehicles in inventory aged 31 days or greater (dollars and units) should be combined with used program vehicles 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: