12 – Delivery Expense

Vehicle Selling Expenses

Synopsis

Account 12

Debits

Credits

  1. Internal selling price of preparing new and used vehicles for delivery.

  2. Expenses (other than wages) of employees associated with delivering vehicles to customers.

  3. Internal selling price of the labor for removing accessories and optional equipment.

  1. Courtesy or distant delivery fees received from the manufacturer or other dealers.

 

 

Remarks:

Included in this account would be such items as new vehicle preparation, washing, gasoline, oil, etc.

The cost of retailer “thank you” gifts, cards or letters to customers who purchase vehicles.

Courtesy delivery fees paid to other dealers for handling vehicle deliveries should be charged to this account.

Repair of minor transit damage for which a claim is not made against the carrier should be charged to this account.

Charges to this account should be made at the internal selling price of labor performed and parts used.

The dealer should carefully review charges to this account with the new or used vehicle sales manager and/or the service manager each month.