How Long Does a Car Count as Inventory?

[LaClaire]

Inventory cars generally refer to vehicles that remain unsold for more than 3 months after being manufactured and leaving the factory. Due to the emphasis on timeliness in the automotive manufacturing industry, under normal circumstances, the process from manufacturing to selling a new car to a buyer can usually be completed within one or two months. Cars that remain unsold for more than 3 months or longer are generally considered inventory cars. Methods for handling inventory cars: 1. Dismantle the inventory cars and sell important components such as engines and transmissions; 2. Inventory cars can also be absorbed through internal purchases. If the number of inventory cars is not large, they may be sold to employees at very low prices, which not only helps clear the inventory but also provides a benefit to the employees. Many 4S stores adopt this method.