Archives: Dealer Bulletins

All AADA Franchisee Dealer members in the Essendon Fields (EF Auto) precinct are invited to the very first of a nationwide series of AADA Member Briefings. The purpose of the briefings is for AADA CEO James Voortman, and Deputy CEO Brian Savage, to discuss the current state of the retail new and used car market with Australian Dealers.

Where: Basq – 305 Wirraway Road, Essendon Fields VIC 3041
When: Wednesday 2 April 2025
Time: 8:15am for 8:30am start (scheduled to finish by 10:15am)

What issues impacting Dealers will be discussed?
AADA will be updating members on how your national body is dealing with issues impacting your dealership such as the New Vehicle Efficiency Standard, the EV transition, 2025 Federal Election, Dealer Management System provider issues, manufacturer indemnity issues, on-line classified provider concerns as well as the new franchising laws.

AADA Director of Industry Affairs Mick McKenna will give a brief update on local state issues.

Who should attend from your dealership?
It would be of benefit for your dealership’s Dealer Principal or General Manager, CFO, CIO, or Service Manager to attend.

How to register?
You should register your intention to attend by filling the form below. Due to the venue having capacity issues, there will be a cap of two representatives per individual EF Auto dealership (not per group) for this event.

If you wish to have more than two representatives from your dealership to attend the briefing, you are encouraged to contact AADA.

REGISTRATION FORM

In a major win for the industry, today the Government committed to banning unfair trading practices and the use of unfair contract terms in agreements between Australian new car and truck Dealers and OEMs, as part of significant reforms to the franchising code of conduct.

The Government also committed to prioritising work to move the point of compliance under the New Vehicle Efficiency Standard (NVES) to the point of sale, rather than when a vehicle is imported to Australia.

This is an acknowledgement of the power imbalance that Dealers as franchisees face in their relationships with OEMs and seeks to improve the fairness of relationships between franchisees and franchisors.

For many years, the AADA has advocated the need for expanded protections for Dealers against unfair contract terms and unfair trading practices, and today’s announcement is a very welcome step in the right direction towards a more level playing field.

As seen recently in the industry, the high bar required to demonstrate unconscionable conduct has at times benefitted manufacturers in disputes with their Dealer networks, and many challenges faced by Dealers are a consequence of the misuse of power by car manufacturers.

 

Unfair Trading Practices

While the details of the reforms are yet to be finalised, we expect the introduction of these significant reforms will ensure Dealers are protected from a whole host of unfair practices that would not currently reach the high bar of unconscionable conduct.

Some examples of these practices could include:

• Making unilateral significant changes to the business model with little to no negotiation with Dealers.
• Terminating Dealer agreements and pressuring Dealers to accept inadequate compensation within very tight deadlines.
• Offering short term Dealer Agreements with no prospect of recovering investment.
• Linking major investment to the renewal of a franchise agreement.
• Pressuring Dealers to take on additional stock and register vehicles as sold to improve market share of the manufacturer.
• Refusing to indemnify Dealers (a legal obligation) for work done to honour an OEM’s warranty and Australian Consumer Law obligations.
• Conducting random warranty audits, clawing back large sums of money by extrapolating the results from a small sample over an extended period of time.
• Setting unrealistic sales and performance targets and using failure to achieve targets to penalise Dealers financially.

The AADA will be heavily involved in the consultation process to develop the unfair trading practices prohibition, and ensure that the practices above are covered sufficiently under any regime design that is developed.

 

Unfair Contract Terms

While the Unfair Contract Term regime has been in place for a number of years, this expansion of protections against unfair contract terms will ensure all Dealers are protected from unfair terms in standard-form contracts regardless of turnover or employee count.

Some examples of these terms could include:

• Terms that give the franchisor an unconstrained ability to vary key aspects of the franchise agreement (including the terms under which the franchisee operates).
• Terms which place no constraints or limits on when, how or why the franchisor may unilaterally vary the operations manual.
• Terms that give the franchisor excessive authority to terminate a franchise agreement.

These vital reforms will provide Dealers with greater certainty, ensuring they can operate and invest with confidence in an evolving economic landscape, however, they will only apply to contracts entered into following the implementation date of the reforms.

 

NVES Point of Compliance

Today’s announcement means that the Government will prioritise this work to move the NVES point of compliance ahead of the planned 2026 review.

The AADA has continued to advocate a need for this change as part of the NVES and welcomes this announcement as a signal of the Government’s determination to ensure Australian automotive businesses are not adversely impacted by the business practices of international car companies.

 

AADA Members Webinar

To ensure all members are aware of this recent announcement and what this means for them, the AADA will be hosting a webinar where members can hear from the AADA and experts on these reforms and ask any questions they have.

Date: Friday 28 March 2025
Time: 11:30am – 12:30pm AEDT

Further details on this webinar and a link to register will be circulated later this week, and in the meantime, the AADA will be seeking further details on this announcement to provide to members.

The February 2025 edition of the Automotive Insights Report (AIR) shows a modest rebound in used car sales. Using data supplied by AutoGrab, February’s AIR saw sales rise 2.2 per cent to 174,762 units, however this came as total listings declined slightly indicating a tightening in some areas.

The increase in sales marks a positive shift from January, though the broader market continues to adjust. With supply contracting and demand still below historical levels, conditions remain competitive for sellers.

Meanwhile, the average time to sell a used vehicle remained steady at 48.5 days, indicating that vehicles are still moving at a consistent pace, despite some regional variations.

The Suzuki Jimny continued its dominance in retained value rankings, holding the highest resale value among passenger cars and SUVs in both age brackets. With an impressive 108 per cent retained value, the Jimny has consistently outperformed larger and more expensive competitors, reflecting its strong demand in the market.

Ford Ranger retained its position as Australia’s best-selling used car, with a 2.5 per cent increase in sales. Toyota models continued to dominate the top-sellers list, with five of the top ten positions.

Highlights from the AIR for February 2025:

• 174,762 used cars were sold, an increase of 2.2 per cent from January.
• Used vehicle supply fell by 1.8 per cent, with most states experiencing a drop in listings.
• Sales increased in major markets, with VIC (7.0 per cent) and NSW (3.8 per cent) leading the gains.
• Electric vehicle sales rebounded, up 11.4 per cent, though retained values remain under pressure.
• Average days to sell a used car held steady at 48.5 days.
• Japanese brands dominated, taking 8 of the top 10 best-selling models, with Toyota accounting for 5.

Dealers seeking more granular and local data can contact AutoGrab directly for a tailored solution.

If you are a Dealer of a contributing brand and would like access to the monthly report please email Communications Manager Ashleigh Sykes on asykes@aada.asn.au.

AADA Queensland and MTAQ members seeking advice are encouraged to stay informed regarding all facets of Tropical Cyclone Alfred and its impact on local businesses and communities by monitoring the Queensland Government’s Local Government Disaster Dashboard. An A-Z of all local government regions is listed within the dashboard.

Relevant areas for Dealers and their staff to seek advice and support can be found at the following:

1. Dealers should consider monitoring their local weather and receive weather warning notifications via the Bureau of Meteorology’s Weather App.
2. Dealers are also advised that if they, or their staff, are experiencing emotional stress support is available via:

• The Community Recovery Hotline 1800 173 349. The hotline is available 24 hours per day, 7 days a week.
• A dedicated Community Recovery Lifeline Hotline 1800 116 671 available from 8:00am to 8:00pm for specialist disaster counselling.

Staff stand down and other Industrial Relations areas

If your dealership(s) has queries with regards to employee issues and procedures, you are encouraged to call the MTAQ Industrial Relations Team on (07) 3237 8777.

This is a valuable resource for Dealers who are members of the MTAQ.

Other information

Dealers should also be in touch with their OEM franchisors to ensure that the disrupted trading conditions, dealership closures, staffing issues and service department impacts are communicated. Dealers should be calling for support and assistance from their OEM’s wherever possible in recognition of the extraordinary weather events that are expected.

At this stage, the Queensland Government has not announced any form of Personal Hardship Financial Assistance.

AADA thoughts are with its Queensland members during this weather event.

Employee costs account for a significant percentage of gross profit and continue to be the largest expense in any dealership. The ability to offer appropriate remuneration packages and structures is essential for dealerships to sustain a competitive advantage and achieve profitable growth.

Due to ongoing requests over the last few years, we are re-instating our unique analysis to provide exclusive data that is not readily accessible. The 2025 Salary Survey benchmarks remuneration across various departments and experience levels within Australian dealerships, providing participants with powerful insights to support employee engagement and productivity. For most businesses, and certainly dealerships, strong leaders are the difference between success and failure.

By participating in the AADA & BDO 2025 Salary Survey, your dealership will be offered full access to the report upon completion. You can see an example of a similar report from BDO UK on their website.

The attached form includes instructions on completing the survey. We note that when submitting, your name and the contents of your submitted form remain anonymous to other participants.

Taking approximately 15 minutes to complete, we recommend tasking the completion of the survey form to the appropriate staff, such as Human Resources or Payroll. To ensure data accuracy, it is recommended that all fields in the workings tab be completed, if applicable. Please note, we will accept submissions up to 14 April 2025. Dealer participation is key to the success of this survey as your feedback will drive the results to support dealers.

Submit form to: salarysurvey@bdo.com.au

DOWNLOAD SURVEY FORM

The January 2025 edition of the Automotive Insight Report (AIR) highlights a shift in the Australian used car market, with supply increasing by 3.4 per cent to 333,386 listings, reversing previous months of decline. However, consumer demand remains subdued, with total sales dropping by 5.9 per cent.

The increase in listings, coupled with declining sales, suggests that the market continues to favour buyers. Sellers are facing longer wait times to move stock, with average days to sell holding at 48.5. It is believed this trend may persist as the growing availability of new vehicles continues to impact the used car sector.

Retained values remained under pressure, with most vehicle segments showing declines. However, retained values for light commercial vehicles saw slight increases in some age categories.

In retained value rankings, the Ford Mustang held the highest value among passenger vehicles (in the 2-4 year category), while the Suzuki Jimny continued a 15 month hold on the top spot in the SUV category. Toyota further cemented its market strength, holding 7 of the top 10 SUV retained value rankings.

HIGHLIGHTS FROM THE AIR FOR JANUARY 2025

• 171,007 used cars were sold in January, a decrease of 5.9 per cent from the previous month.
• Dealer contribution to both sales and listings is at its highest level in recent history.
• Sales declined across all states, with NT (-10.1 per cent) and VIC (-9.9 per cent) experiencing the largest drops.
• Average days to sell a used vehicle remained steady at 48.5 days.
• Passenger and SUV retained values declined across most model years, with LCV-Utes showing minor gains.
• Ford Ranger remains Australia’s best-selling used car.
• Japanese manufacturers dominated the top sellers list, with 8 of the top 10 models originating from Japan, and Toyota alone accounting for 5 of the top 10.
• EV retained values continued to lag significantly behind other segments.

Dealers seeking more granular and local data can contact AutoGrab directly for a tailored solution.

If you are a Dealer of a contributing brand and would like access to the monthly report please email Communications Manager Ashleigh Sykes on asykes@aada.asn.au.

From 7 June 2024, WA motor vehicle Dealers must have been disclosing to prospective buyers whether a used vehicle is listed on a written-off vehicle register. Dealers are required to advise a prospective purchaser of a vehicles written- off status in writing.

AADA previously reminded WA Dealers of this requirement in April and May 2024.

The WA Department of Energy, Mines, Industry Regulation and Safety has reminded Dealers to comply with the prescribed wording mandated under Regulation 5 (1)(c) of the Motor Vehicle Dealers (Sales) Regulations 1974 WA.

Dealers must indicate whether a used vehicle is classified as a repairable write-off (RWO) by ticking ‘YES’ or ‘NO’ on Form 4 (also known as the ‘Vehicle Particulars’ form). Form 4 is required under Section 33 of the Motor Vehicle Dealers Act 1974 (WA) and must be displayed in the window of every used vehicle for sale.

All required forms under the Act can be found here.

Dealers are advised that the Department have forewarned of a focus on Dealer compliance with regards to the Form 4 in the upcoming weeks. The Department may take punitive action against Dealers who use incorrect, incomplete, or inaccurate forms. Penalties can include:

• Fines of up to $2,000 per instance of non-compliance with Regulation 5 (1)(c).
• Penalties of up to $5,000 for false or misleading statements on the form.
• Breach of Australian Consumer Law for failure to disclose the vehicle’s true history.

If you have not already done so, it is recommended that Dealers implement a system to check a vehicle’s written-off status before acquisition or disposal. The most complete method is through the Personal Properties Security Register (PPSR), which costs $2 per search.

Dealers should also work with their DMS providers to ensure that the system generated forms have been altered to reflect the requirement. It is AADA’s advice that your used vehicle contract of sale is also amended to reflect the law.

DOWNLOAD DEALER BULLETIN

The Australian Automotive Dealer Association (AADA), with data provided by AutoGrab, has released the 2024 Year That Was Automotive Insights Report (AIR), providing a comprehensive analysis of the Australian used car market. While the market experienced strong growth for most of 2024, momentum slowed in the final months, signalling a more measured outlook for 2025.

This is the second annual release of the Year That Was AIR. According to the report, total used car sales in 2024 reached 2,324,805 units, a 12.1 per cent increase compared to 2023. Sales peaked in July, with sustained demand throughout much of the year before easing towards the end. Listings, on the other hand, peaked in November, highlighting a softening in consumer demand relative to supply.

While demand remained healthy, there were signs of cooling, particularly in the latter months, as affordability pressures and economic factors come into play. Profit margins tightened, and days to sell increased by 15 per cent for listings between August and October, further indicating that slowdown.

Toyota remained the top-selling brand, with 390,298 used vehicles sold, followed by Mazda and Ford. Among individual models, the Ford Ranger led with 82,448 sales, ahead of the Toyota Hilux and Toyota Corolla.

Dealers seeking more granular and local data can contact AutoGrab directly for a tailored solution.

DOWNLOAD 2024 YEAR THAT WAS AIR

DOWNLOAD DEALER BULLETIN

AADA is proud to release the 2025 edition of the DealerNomics Automotive Statistics booklet.

DealerNomics 2025 remains an essential resource, offering key insights into the latest automotive industry trends. This year’s edition continues to provide a comprehensive summary of the most relevant data, helping members stay informed in an ever-evolving market.

For 2025, we’ve expanded our coverage to include:

• Analysis of the new vehicle market, combining sales data from multiple sources for a comprehensive view
• For the first time, truck Dealer network performance and economic data
• Used vehicle sales trends
• Australia’s in-service vehicle fleet
• The economic contribution of dealerships
• Dealer network sales performance
• Highlights from our latest consumer sentiment survey on EV adoption
• Motor industry benchmarking insights

Download the DealerNomics Automotive Statistics 2025 booklet below.

If you are a member and would like hard copies of the booklet, please contact the below AADA secretariat member and we’d be more than happy to send some out.

DOWNLOAD DEALERNOMICS

DOWNLOAD DEALER BULLETIN

The Tasmanian Government will be providing grants to small businesses that purchase new battery electric delivery vans.

Applications for the Tasmanian Government’s Deliver-e Small Business Grant Program will open on Thursday 6 February 2025 at 10am.

Deliver-e supports small businesses to purchase new battery electric delivery vans for short to medium length delivery of goods and services. The program encourages Tasmanian businesses to reduce their transport emissions by replacing internal combustion engine delivery vans with electric alternatives.

Eligible Tasmanian small businesses can access grants of $20,000 for new battery electric delivery vans. Total funding of $300,000 is available. Applications will close when the funding is fully allocated.

It is important for Dealers to note that:

• Dealers are not required to process applications or provide a rebate; the application is made to the Department of State Growth.
• Small businesses must complete an online application form and provide a quotation for the battery electric delivery van on their application.
• To be eligible the vehicles must be new BEV delivery vans.
• If the application is approved, the business must provide proof of a deposit of at least 10 per cent for the van.
• This proof will need to be provided before the grant can be paid to the small business’s bank account.

Please see the attached factsheet for a brief overview of the program and for contact information at ReCFIT.

DOWNLOAD DEALER BULLETIN