dealers’ lots

Question

What does it mean by "dealers' lots" in the paragraph below?
In an earlier era, capital consisted primarily of
tangible assets. Three important categories of tangible
capital are structures (such as factories and
homes), equipment (such as consumer durable
goods like automobiles and producer durable equipment
like machine tools and trucks), and inventories
(such as cars in dealers’ lots).

GPY · Accepted Answer

"dealers" means car dealers (people who buy and sell cars).

"lots" means sites where cars for sale are parked up.

Asaisaio · Answer

Thanks for you answer. I was wondering what the meaning of "inventories" in the sentence is now. What the difference between the cars in lots (inventories) and the cars used by people, according to the sentence? Why does the author make them in difference categories? Thanks very much in advance!

GPY · Answer

I think the distinction being made is that, unlike "equipment", the "inventory" goods are not being used for a practical purpose by the owner.

Asaisaio · Answer

Thank you, but in the dictionary, the word "inventory" means "a supply or stock of something", which indicates that the cars in lots will be sold in the future, and become the equipment. So I haven't known the distinction yet. Could you give me more details? Thanks very much!

GPY · Answer

asaisaiowhich indicates that the cars in lots will be sold in the future, and become the equipment.

Someone else's equipment, yes, potentially.

dealers’ lots

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