5 Challenges Facing Australian Motor Dealers in 2022

09 Feb 2022 Helpful Tips


Every Australian Motor Dealership has faced many unique challenges over the last two years. As we head further into 2022, there will continue to be a variety of different challenges for dealers to adapt to.

New Car Supply Shortages, Used Car Prices, Staff Shortages, and Increasing Online Advertising costs are just a few of the key challenges facing Australian dealers in 2022.

Here are 5 Challenges Facing Australian Motor Dealers in 2022:

1. Car Shortages:

The biggest challenge facing all Australian Motor Dealers in 2022 is car shortages. New and Used Car shortages have been a massive headache over the last two years and it’s sad to say but it looks like shortages are set to continue for at least the first half of 2022.

With Covid-19 still running rampant around the world, global car manufacturers have had to limit or close production entirely due to the health risk. What’s further slowing production is the recent global semi-conductor chip shortage.

When will the shortages end? Well, the answer to that is not so simple. In short, it is all dependent upon the international economic recovery. Some top analysts are predicting it could start to ease in July 2022.

2. Soaring Used Car Prices

Sourcing Used Car Stock has been almost impossible over the last two years. With demand for used cars hitting unprecedented levels – prices have hit unthinkable heights. Though the price rise has been welcomed news for dealers who are lucky enough to have stock, for dealers that don’t getting good quality cars at an affordable price is now very unlikely. Margins are decreasing and profits a subsidising as a result of the soaring prices.

When will prices start to ease? This is very relatable to point number one. When more new cars become available, and the economy starts to recover from the pandemic we will slowly see prices fall. Australian analysts are predicting prices to remain high until mid-year at a minimum.

3. Staff Shortages

One of the new challenges facing all Australian Businesses is staff shortages. With the Omicron strain surging throughout Australia, many dealerships may be forced to operate with low staff or even close for a point in time throughout the year.

Throughout January 2022 1 in 4 Australian businesses were impacted by a staff shortage as a result of the Covid Pandemic. The best way Australian dealers can minimise the impacts a staff shortage have on the dealership automate their everyday tasks using a Dealer Management System.

The benefit of using a Dealer Management System like EasyCars, is it automates all the tasks involved with running a motor dealership and allows you to trade remotely. As a web-based system EasyCars automates tasks like Stock Management, Advertising, Government Compliance, Website Listings, Reviews, Business Reporting and Accounting. In the event of any staff shortage your dealership can still trade seamlessly.

4. Advertising Prices

A concerning challenge facing Australian Motor dealers in 2022 is the rising costs of Vehicle Advertising. Vehicle Advertising is a necessary but costly task that all dealerships need to do. But if your dealership doesn’t have a strategic advertising plan in place, you could risk overpaying or worse, receive no leads.

To be successful in 2022, dealers MUST frequently report on their advertising spend and ROI. Understand how much you are paying for leads; how many leads are being received from a particular advertiser and if the lead went on to convert into a sale.

The benefit of frequently reporting on your advertising spend is you can stop sending vehicles to advertisers who don’t provide a good return.

5. Lockdowns

Yes, it may seem unlikely that Australia will ever go back into a hard lockdown, but you can never be so sure. What happens if cases increase again? We just never know what can happen.

Dealers need to make sure they have all the tools in place that allow them to trade remotely during any covid enforced lockdowns. A benefit of using a web-based dealer management system like EasyCars is you can still operate remotely on any device, at any time – all you need is an internet connection.

Related Article: How to run a Used Car Dealership During Covid.

In conclusion,

2022 will present many challenges and opportunities for Australian Motor Dealers. To be successful, Dealers need to have the right systems in place that minimise the impacts that those challenges have on the dealership.

We hope you enjoyed this blog, to read more blogs like this, visit our news section here.

About EasyCars,

EasyCars by Jeal is an Australian web-based dealer management system that automates the day-to-day tasks of running a motor dealership. Using the latest technologies, EasyCars removes common frustrations, opening your doors for future growth.

Get Stock Management, Advertising, Government Compliance, Business Reporting, Integrated Accounting, Website Listings and Reviews Management in one central easy to use software application.

Call us today on 1300 473 744 to see what sets us apart from other provides or fill in the form below to get a no-obligation free demo of EasyCars.

Contact Us