5 Biggest Car Dealer Frustrations in 2022 and How Your Dealership Can Avoid Them

28 Jun 2022 Helpful Tips


What can you say, being a Motor Dealer has its fair share of challenges. With so many things to do on a daily basis, often things don’t run as smoothly as they should. At the end of the day there are always going to be frustrations, you can't stop that, but what will make you successful is the way that you reduce the effects frustrations have on your dealership.

From rising vehicle advertising prices to stock shortages, here are the 5 biggest car dealer frustrations in 2022 and how your dealership can avoid them.

1. Wrong Vehicle Inventory Choices

One of the biggest frustrations for Motor Dealers in 2022 is struggling to find a buyer for a car. It doesn’t take a genius to realise that the longer a vehicle sits in stock the more you will pay. What makes things worse is dealers often have to discount the price of vehicles that don’t sell well below the purchase price, often resulting in a loss.

Let’s face it, cars aren’t going to sell overnight, it does take time, but there is only a certain amount of time you can have a car sit in the lot before you need to make a change. To avoid making the wrong vehicle purchasing choices it is so important that you research and understand what vehicles are selling.

Check the most popular vehicles chart, see how what customers are buying and try to find ways to source those popular vehicles at a good price to turn a profit. If you want to sell vehicles faster, you need to give customers vehicle choices that they are looking for!

Related Article: Most Popular Cars in Australia in 2021.

2. Rising Vehicle Advertising Costs

Vehicle Advertising is an expensive but essential task for all Motor Dealers. Over the last two years, online vehicle advertising costs have skyrocketed, putting further pressures on dealers’ bottom lines. With over 95% of car buyers finding their next vehicles online, vehicle advertising is something your dealership cannot do without. But, with that being said there are ways to limit your advertising spend and see great results.

To minimise your vehicle advertising spend, you need to have a strong vehicle advertising reporting system. Your dealership needs to know what advertisers are providing a return on investment and what advertisers are not. By having instant access to key information, your dealership can stop spending money with advertisers who aren’t providing bank for your buck.

Another way to minimise your vehicle advertising costs is to seek alternative providers. The Australian online vehicle advertising landscape is extremely competitive, advertisers are literally fighting for your listings, some advertisers go as far as offering exclusive free advertising periods in an effort to get your listings. Take advantage of alternative advertisers, you may find you receive better results from the smaller advertisers compared to the major advertisers.

Related Article: 5 Common Vehicle Advertising Mistakes Motor Dealers Make in 2022.

3. Changing Government Compliance Laws

One of the most challenging things about being a motor dealer is keeping on top of the ever-changing government compliance laws. The Australian Automotive Industry has always been put under the microscope from the government with laws changing frequently to further protect customers.

For Motor Dealers it’s hard enough to even understand the complexities of the motor dealer laws let alone stay on top of frequent changes. However, it is essential that dealers comply with all the changes or you could face significant penalties or loss of license.

To streamline the government compliance process, dealers should look to implement a dealer management system like EasyCars. The benefit of using a system like EasyCars is compliance forms automatically update as new laws are introduced or updated – your dealership doesn’t need to do anything!

Related Article: Car Dealer Fined $7725 for Inaccurate Compliance Reporting.

4. Stock Shortages

The biggest challenge facing all Motor Dealers in 2022 is Car Stock Shortages. With new car delays still continuing, used cars have become a hot commodity for Australian motorists. Due to the demand, quality used cars have been hard to come by or far too expensive for motor dealers.

With international new car production facing delays until at least early 2023, stock shortages look like they will continue to frustrate dealers for some time. However, there are ways to source quality used cars at the right price even in a highly competitive market. The secret to sourcing stock is to think outside of the box. Reach out to your past customers, see if they have or know anyone who is looking to sell. Visit auction houses and even sign up to private seller lists. The trick is to avoid the highly competitive avenues. The more competitive it is to source a car, the more you will pay, it’s that simple.

Related Article: How Australian Motor Dealers Can Get More Vehicle Stock in 2022.

5. Finding New Revenue Streams

Finding new ways to generate revenue has always been a major frustration for dealerships. There’s only so much revenue you can generate from selling a car directly. To maximise profit and growth, dealers need to look for new ways to drive revenue.

Luckily for Motor Dealers there are many ways that you can drive revenue without requiring any extra work. One of the best ways to drive more revenue is through same day dealer finance. Customers are still looking for finance they are just looking for it on their own. By offering a competitive dealer finance option, your dealership can earn thousands in commission for every successful customer.

To learn more about Dealer Finance in EasyCars click here.

Related Article: How Australian Motor Dealers Can Close More Finance Deals in 2022.

Final Word,

There are always going to be frustrations in business. What will determine your dealerships success is the way you minimise frustrations and the effects they have. The 5 frustrations mentioned above are common in the Australian Automotive Industry and can be avoided through the solutions presented.

We hope you enjoyed reading this article. To read more articles like this, please visit the EasyCars latest news page here.

About EasyCars

EasyCars by Jeal is an Australian, web-based, dealer management system that automates the buying and selling of motor vehicles. Using the latest technologies, EasyCars removes frustrations experienced at the dealership and opens your doors for greater growth.

EasyCars features include Simple Stock Management, Automated Advertising, Integrated Accounting, Government Compliance, Business Reporting, Reviews Management, Dealership Websites and more.

To learn more about EasyCars Dealer Management System and to arrange a no-obligation free demo, contact us today on 1300 473 744 or submit the form below.

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