DealershipForum.com - View Single Post

XDCX · 02-06-2008, 08:32 AM

I checked with one of the Parts Managers that I used to know and asked his opinion about your parts inventory situation.

He agreed that you could use another dealer's return allowance but the process is more difficult than it appears. Given the length of time it takes to process a return, you really have to "trust" the other dealer.

One suggestion that he had was to "swap" your obsolete inventory with a terminated dealer's fresh inventory. As an example, if a neighboring dealer is going to terminate you would exchange $100K of your old inventory for $100K of his fresh inventory. As long as the $100K that you exchanged was returnable, it wouldn't be an issue for the terminating dealer.

The benefit of this solution is that you are never in a position where you have to trust that someone is going to write you a check. You simply exchange parts for parts. Additionally, since most terminating dealers are short-staffed after the store closes you may be able to find one that will give you favorable terms if you assist him with the termination return.

To the best of my knowledge, the inventory "swap" solution wouldn't violate any of the terms of the Manufacturer's policies regarding termination returns.

Hopefully someone can provide some other solutions.

02-06-2008, 08:32 AM	#8
XDCX Administrator Join Date: Nov 2007 Posts: 14,869	No easy answers..... I checked with one of the Parts Managers that I used to know and asked his opinion about your parts inventory situation. He agreed that you could use another dealer's return allowance but the process is more difficult than it appears. Given the length of time it takes to process a return, you really have to "trust" the other dealer. One suggestion that he had was to "swap" your obsolete inventory with a terminated dealer's fresh inventory. As an example, if a neighboring dealer is going to terminate you would exchange $100K of your old inventory for $100K of his fresh inventory. As long as the $100K that you exchanged was returnable, it wouldn't be an issue for the terminating dealer. The benefit of this solution is that you are never in a position where you have to trust that someone is going to write you a check. You simply exchange parts for parts. Additionally, since most terminating dealers are short-staffed after the store closes you may be able to find one that will give you favorable terms if you assist him with the termination return. To the best of my knowledge, the inventory "swap" solution wouldn't violate any of the terms of the Manufacturer's policies regarding termination returns. Hopefully someone can provide some other solutions.