Category: Dealership Operations

Who Makes The Money In A New vehicle Sale?

It will hardly be news to our readers to say that new car Dealers operate on very slim margins. What’s not fully understood by non-Dealers is who makes the most from the sale of a $20,000 new car. When a…

Protecting the goodwill of your dealership

In the previous edition of Automotive Dealer, I discussed who owns the goodwill in your dealership and concluded that there is a reasonable legal basis for the proposition that the franchisee/Dealer does. In this article, I will discuss in more…

Driving succession in your motor dealership

When we ask our motor dealership clients about their succession plan, many of them believe that succession planning is simply passing the ownership of the business onto one or more children. However, when we delve into the detail it soon…

Dealer Perception does not reflect reality

The public has long held the impression of car salespeople as untrustworthy, and despite Dealers’ best efforts, this unfortunately remains the case. The AADA and Automotive Dealer are determined to change this perception and bring the public view into line…

Oversupply Effect Costing Dealers

The global problem that is the oversupply of new cars is directly and negatively impacting automotive retailers, driving down the transactional gross on each sale. Most readers will be familiar with the story that broke last year regarding accusations that…

The Threat of Termination of an Automotive Dealership

There is no greater threat to a Dealer’s investment in their dealership business than the threat of termination. The threat can occur in a variety of circumstances, all of which are very serious. Termination means the end of your dealership…

Pentana Solutions Petitioning for Significant Industry Change

Over 41 years of operation Pentana Solutions has experienced the automotive industry transform many times, sometimes as an onlooker, other times as a supporter, this time as a driver. This year Pentana Solutions, a leading automotive innovation company, has started…

Service Loan Cars Not Exempt From Stamp Duty

VCAT Decision Could Have National Implications In the Victorian Civil & Administrative Tribunal (VCAT) on 17 August 2015, the Victorian Commissioner of State Revenue argued successfully that complimentary loan vehicles provided by dealerships to their customers while their vehicles were…

How Solar Is Powering Dealers To Better Profits

Installing solar panels is proving a smart business decision for a growing number of Dealers seeking to cut their running costs There are few countries as well suited to solar power as Australia. Indeed, our sunburnt country enjoys more light…

Consumer Guarantees vs Manufacturer Warranties

There has been long standing confusion and debate regarding how ‘traditional’ manufacturer warranties coexist with consumer guarantees (or ‘statutory warranties’) granted under the Australian Consumer Law (ACL) and previously under the Trade Practices Act. The confusion has been exacerbated by…