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Parts Manager Jan 2008
| - Can you "write down" the value of your parts inventory and take a tax deduction?
It is common practice for franchised car dealers to "write down" the value of their used car inventory when it has simply been on the lot too long, taking a tax deduction for the paper losses. When the vehicles are subsequently sold, the gross profit is calculated based on the difference in the new, lower cost and the selling price, so it all comes out in the wash tax-wise.
But a recent discussion on the DealersEdge Parts Manager Forum pondered whether parts managers could do the same thing - write down the value of idle or obsolete parts inventory, keep it on the shelf for later sale, and take a tax deduction for the diminished value.
It turns out that this question is not new. In fact, the U.S., Supreme Court ruled on the practice in 1964 in a case involving the Thor Power Tool Co.
| - Parts manager prospers by focusing on smart hiring and online profit opportunities
Parts manager Dominick Thompson has only been in his role and at his dealership, Key Nissan of Hardeeville, SC, for 15 months. But already the former dealership parts driver and parts counterperson - who has also previously handled service payroll for technicians, done warranty administration, and helped open a Parts and Service department for another dealership - is thinking like a successful veteran manager.
From hiring the right people, to trying to partner with an online retailer for accessories and parts sales, and even starting up The Avenue, Key Nissan's new blog, Dominick is being proactive from all angles.
| - Using sources to control SOP returns
Forced stock parts caused by returned special order parts can be a parts manager's nightmare if they are not properly controlled. But how can you control what a customer sends back? There are three major types of returns that parts managers deal with regularly:
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