How do I check a used car lot’s inventory records against the vehicles on site?

Ask for the list on a set date and do the count on or near that date. Walk the lot with a copy and tick each car off by reading the identification number from the vehicle itself. Include the cars in the back row, in service bays and at any off-site storage. Differences between the list and the lot are the first thing to explain.

Next, look at the status of each car. Which are owned outright, which are on consignment for other people and which are tied to a lender? Cars that belong to someone else are not part of what you are buying. Ask whether any are awaiting repair, awaiting title or tied up in a dispute, and ask how the seller treats cars that have been sold but not yet collected.

Then check how the list is kept. Is it updated the day a car arrives or sells? Does the system tie to the books? Your accountant can compare the list to the financial records, and your lawyer can confirm title and any registered claims on the stock before you commit to buy. Take photographs during the walk and keep your own notes. If a dispute arises about the count at closing, a dated record from your own visit settles more than memory does.

Key takeaways

• Match each vehicle by identification number, not by description.
• Separate owned cars from consignment units and financed stock.
• Ask how quickly the list is updated and whether it ties to the books.