Effective inventory management is crucial for effective organizational functioning. The study focused on the inventory management practices used by a car dealer in San Pablo, City and their effectiveness, its importance and the challenges faced in applying inventory management practices by automotive dealers. The participants of the study are the employees of the company: Parts, Sales, Service, Finance and Admin Departments. Findings highlight the dealer's employment of the first-in, first-out (FIFO) method for stock valuation, managed via bin cards and excel. The study concludes that adept inventory management can curtail costs. Recommendations involve refining strategies with precise record-keeping, a robust stock plan, and meticulous accounting for an efficient inventory system.