Unsold Used Cars Hit The Auction In 90 Days
This is the most common way of moving Frozen Capital out of the Used Car Department in a Dealership. But in the Parts Department, we wait at least 9 Months and write them off after 12 Months.
The reason for the vast difference in Inventory Control handling is simple. Return allowance with OEM Manufacturers only allows between 0 -7% of purchases to be acceptable for return. The average Dealer needs at least double that on an ongoing basis.
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