How do I review a garage’s parts inventory for obsolete or dead stock?

Start with the shelves. A garage’s inventory report often says more than the shelves can back up, so choose a section, count what is there and compare it with the system. Do a second sample from the back of the stockroom where older parts tend to gather. Look at dust, packaging condition, faded labels and parts for vehicles that rarely come in.

Next, use sales history. Ask for a report showing the last sale date of each part. Items with no movement for a long time are suspects. Check for special orders that a customer never collected, core charges and warranty parts waiting for return. Ask whether suppliers accept returns, and on what terms, because a return option changes how you view slow stock.

Then decide how to treat it in the sale. Some buyers agree to take stock at a counted amount, with obsolete items excluded or reduced. Others settle it in a separate stock count at closing. Whichever route you take, write the method down before the count so no one argues afterward. Your accountant can advise on how stock is recorded, and your lawyer can place the rules in the agreement. Ask the lead technician which parts they have never used, since they often know the shelf better than the report does.

Key takeaways

• Count a sample on the shelves and compare to the system.
• Pull a last-sale-date report for every part.
• Agree how obsolete stock is treated before the count.