They do book the value of the trade-in as Automotove Sales Revenue, but I believe they then add that value to Finished Goods Inventory. When they later sell the used car they book the proceeds as Service Revenue and the carrying value as COGS...
There's an element of double counting here, but it's the best way I see for them to handle two separate handle transactions that can occur in different reporting periods...
This should almost all be charged to warranty reserve (or pre-paid maintenance). They lost almost 200m on Service in Q1. There are what, 50k cars out of warranty? That's 4k of losses per out-of-warranty car? In a single quarter??? Does not compute.