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Accounts Receivable
 6 Months Ended
Jun. 30, 2017
Accounts Receivable, Net [Abstract]  
Accounts Receivable
Accounts Receivable

Accounts receivable consisted of the following (in thousands):
 
 
June 30, 2017
 
December 31, 2016
Contracts in transit
 
$
179,556

 
$
233,506

Trade receivables
 
51,009

 
47,450

Vehicle receivables
 
40,120

 
43,937

Manufacturer receivables
 
73,067

 
76,948

Auto loan receivables
 
74,123

 
69,859

Other receivables
 
1,057

 
1,600

 
 
418,932


473,300

Less: Allowance
 
(6,457
)
 
(5,281
)
Less: Long-term portion of accounts receivable, net
 
(53,465
)
 
(50,305
)
Total accounts receivable, net
 
$
359,010


$
417,714



Accounts receivable classifications include the following:

•
Contracts in transit are receivables from various lenders for the financing of vehicles that we have arranged on behalf of the customer and are typically received approximately ten days after selling a vehicle.
•
Trade receivables are comprised of amounts due from customers for open charge accounts, lenders for the commissions earned on financing and others for commissions earned on service contracts and insurance products.
•
Vehicle receivables represent receivables for the portion of the vehicle sales price paid directly by the customer.
•
Manufacturer receivables represent amounts due from manufacturers, including holdbacks, rebates, incentives and warranty claims.
•
Auto loan receivables include amounts due from customers related to retail sales of vehicles and certain finance and insurance products.

Interest income on auto loan receivables is recognized based on the contractual terms of each loan and is accrued until repayment, charge-off, or repossession. Direct costs associated with loan originations are capitalized and expensed as an offset to interest income when recognized on the loans. All other receivables are recorded at invoice and do not bear interest until they are 60 days past due.

The allowance for doubtful accounts is estimated based on our historical write-off experience and is reviewed monthly. Consideration is given to recent delinquency trends and recovery rates. Account balances are charged against the allowance after all appropriate means of collection have been exhausted and the potential for recovery is considered remote. The annual activity for charges and subsequent recoveries is immaterial.

The long-term portion of accounts receivable was included as a component of other non-current assets in the Consolidated Balance Sheets.