This is the second iteration of the Pitcher Partners Motor Industry Services – Australian Listed Dealer Comparison.
In some workplaces it is common practice to provide employees a company car as a tool of trade, as part of their compensation, or to give the possibility to finance a novated lease. However, as workplaces and companies move their fleets to a greener alternative, an unintended consequence of this can be the increased employee’s tax liability.
With the new car sector of the car sales market constantly evolving and not always in the best interests of dealers, the opportunity is in used cars. From making up a large segment of the Australian car sales market to a smart way to bypass the supply chain issues plaguing the Original Equipment Manufacturers (OEMs), … Continued
The automotive industry has undergone rapid transformation in recent years, driven by the top-down and consumer-driven shift to electric vehicles (EVs) and the closer customer relationships that original equipment manufacturers (OEMs) aim to foster.
Everyone tried hard, no one wanted to see the automotive industry die, but eventually the customer stepped in and changed the course of the game forever.
On 25 November 2022, the Senate passed the Treasury Laws Amendment (Electric Car Discount) Bill 2022 with amendments. The amendments were accepted by the House of Representatives on 28 November and the Bill now awaits Royal Assent.
The EV dealer of tomorrow is going to look remarkably different to the dealer of today. EVs will fundamentally change the franchise dealership landscape. Along with the significant investment in infrastructure required, the EV Dealer of the Future will look remarkably different to the franchise dealer of internal combustion engines (ICE) of today.
A limited supply of vehicles is achieving what the agency sales model sets out to do. After the two most profitable years ever in the automotive industry, we have learned a valuable lesson; limited supply leads to a dramatic increase in profitability for the entire automotive supply chain (OEMs, distributors and retailers).
Gross Margins As already discussed, Gross Margins are currently inflated on both new and used cars as there is reduced supply. Gone are the days of losing money on the metal only for the manufacturer bonuses and incentives to make up the majority if not all the gross profit for the month. The current margins … Continued
As touched on before, the supply of new vehicles to the Australian market is constricted. The constricted supply and recent surges in demand have pushed prices and gross margins to the highest on record, not only in new vehicles but also in the used car market. Speaking with our dealer clients, stock is limited, new orders face large wait times and average days inventory is down significantly from pre-pandemic levels.