Login

(206) 433.6300

info@WSADA.org

Dealership inventories are at historic lows

Franchised new car and truck dealerships are experiencing unprecedented low inventory levels due to COVID-related chip shortages and supply chain disruptions, leading to the threat of a substantial LIFO recapture before inventory levels can be restored.  New car and truck dealers generally restock their inventory at the end of the year to roughly equal their costs at the beginning of the year, but are unable to do so.  For example:

  • Dwayne Lane’s Skagit Subaru: “Subaru typically will have 82-90 new on the ground.  We currently have 3 new and one-quarter of our typical used.
  • Rainier Dodge: “We normally stock 90-120 new vehicles and 75 used…We are currently at 14 new units.”
  • Toyota of Puyallup: “We typically have more than 500 new and used vehicles on the lot – as of today, we have a total of 113.”

Washington dealers ask that Treasury Secretary Janet Yellen issue a notice of determination that a “qualified inventory interruption” of LIFO inventories has occurred under section 473 of the Internal Revenue Code to allow dealerships to replace their vehicle inventories over three years and provide time for vehicle production to normalize.

Real life examples are pictured below — and note that dealerships are arranging remaining inventory so the lot looks as full as possible for passing customers:


Advantage Nissan (Bremerton)


Burien Toyota (Burien)


Carr Auto Group (Vancouver)


Dewey Griffin Subaru (Bellingham)


Dick Hannah Honda (Vancouver)


Dick Hannah Ram Truck Center (Vancouver)


Dick Hannah Volkswagen (Vancouver)


Doxon Toyota (Auburn)


Dwayne Lane’s Skagit Subaru

“Subaru typically will have 82-90 new on the ground.  We currently have 3 new and one-quarter of our typical used.”


Dwayne Lane’s Skagit Mazda

“Mazda new inventory is usually 120+/-.  We currently have 9 on ground and less than one-quarter our normal used inventory.”


Foothills Lincoln Mazda (Spokane)


Gilchrist Chevrolet Buick GMC (Tacoma)


Hanson Kia (Olympia)

“The front rows are zig-zagged just to look full.  The back rows are completely empty.”


Harnish Chevrolet Buick GMC Puyallup (Puyallup)


Honda of Bellevue (Bellevue)


Honda of Kirkland (Kirkland)


Honda of Grays Harbor (Aberdeen)


Rainier Dodge (Olympia)

“We normally stock 90-120 new vehicles and 75 used…We are currently at 14 new units with 23 on the way. However, of the 23, 15 vehicles are pre-sold.  We project 7 units in ground stock by the end of November with an additional 32 in transport.”


Toyota of Puyallup (Puyallup)

“We typically have more than 500 new and used vehicles on the lot – as of today, we have a total of 113.”


Toyota of Tri-Cities (Kennewick)

“The first photo is from May 2020.  The next three were taken on October 28, 2021”


Wysup Chrysler Jeep Dodge (Pullman)

“We have a third of what we had in 2019.”

(206) 433.6300

Toll Free: 800.998.WSAD (9723)

Fax: (206) 433.6301

621 SW Grady Way
Renton, WA 98057

info@WSADA.org