SURPRISE AUDIT

The controller’s job is to protect the dealer’s assets. One of the most abused assets in a dealership is the used vehicle inventory. On any given day rest assured that the inventory that is on the lot will not match the book inventory. To reconcile the physical used vehicle inventory with the book inventory, periodically print a used vehicle inventory schedule and have an office person do a physical inventory of the used vehicle inventory. All vehicles must be “touched.” If a vehicle is not on the lot and is out for cleanup, follow up no later than two days after the physical inventory to verify there actually is a vehicle. A surprise audit of the used vehicle inventory will keep the manager honest.

How many vehicles are scattered around the city curbed at other locations?

How many are out for clean-up?

How many are loaned out?

How many are in service?

How many are in the body shop?

How many are at the auction?

And does a wholesaler have a driver?

Depending if your state is a title holding state is there a title, odometer statement and lien payoff release on file?