Why keep stock you don't sell?

[ShaunTheSheep]

I've noticed a few indie sales places nearby have quite a lot of stock that's not got a price in the window. Are there any benefits to this?

Best i've come up with is it's a tax dodge, tie money up in metal == nothing for mr taxman to swipe corporation tax from. Surely even so you'd still just put a price in the window and maybe a wee "awaiting preperation" sticker somewhere?

EDIT to be clear, these cars are not on the trader yet all the other stock with prices are listed so it looks like there's definitely no effort being made to sell. They're garden variety cars too. A Merc ML, a Mitsi Shogun, a Corsa, etc.

[markmullen]

It might be sold, it might not be prepared so they don't want it looking like it is for sale, it might be in for service and belong to a customer, it might belong to the owner as their own car, all sorts of reasons.

[GC8]

Buying stock is no refuge from tax.

[r11co]

ShaunTheSheep said:

Best i've come up with is it's a tax dodge.

You'll need to do better then.

[calibrax]

GC8 said:

Buying stock is no refuge from tax.

It can be. Won't go into all the complexities & details, but if you buy the stock from a different company also owned by you, then you can avoid tax in various ways.

[ShaunTheSheep]

Just for the dummies among us (eh, hello...), in simple terms - how does the cash flow (normally) work?

If i'm a dealer and i agree to buy 5 cars from you, another dealer, would i pay you there and then or 30 days or when i sell the car?

[markmullen]

There and then.

It can be slightly more complicated than that, with new cars you usually get them for 180 days to sell them before you have to pay for them, when you register one you've got to pay for it.

Also some dealers finance their stock with a finance company, which is called stocking finance.