Category: Member News

The Australian Small Business and Family Enterprise Ombudsman (ASBFEO), the Hon Bruce Billson GAICD will deliver the Keynote Address at this years’ 2021 AADA Convention & Expo.

As the ASBFEO Bruce Billson GAICD is an independent advocate for small business owners. His office has the legislative powers needed to effectively influence our nation’s lawmakers, ensuring legislation and regulations are put in place to help small businesses grow.

Mr Billson believes that small businesses are the engine room of the economy so we need to do all we can to ensure they have the freedom to innovate, employ and thrive well into the future.

Registrations are open for the 2021 AADA Convention & Expo. This year, Australia’s largest automotive event will be onsite at the Brisbane Convention & Exhibition Centre, 14 – 15 September, plus, every session will be available online, both live and on-demand. The AADA Convention & Expo program and schedule will be announced on Tuesday 13 July.

AADA is anticipating a record attendance for this first mass gathering of our industry in two years. The AADA Convention & Expo program will also present our biggest workshop program ever with over 40 business sessions and 60 speakers. It assembles some of the finest minds and leaders in the retail automotive industry, delivering solutions and strategies for every facet of dealership operations. Our speakers will inspire, entertain, educate, and equip attendees with the knowledge to improve operations.

If you are a leader in the Australian Automotive Industry and want to get “Future Focused”, you can’t afford to miss the 2021 AADA Convention & Expo.

To register visit aadaconvention.com.au.

See you in September.

The AADA has recently conducted a study to understand the perspectives and preferences of new car buyers when purchasing a vehicle and interacting with new car Dealers. The AADA also sought to understand the potential impact on consumers of the Manufacturer-led fixed-price sales model.

 

CONFIDENCE IN CAR BUYING PROCESS

One of the key findings of the survey was that the vast majority of 94% of Australians are comfortable with finding the best car for their needs and navigating through the car buying process. Just 1% suggested that they are not confident with the car buying process.

Consumers are also confident when it comes to interacting with new car Dealers, with almost 9 in 10 (87%) stating that they are confident in interacting with Dealers. This shows that the new car Dealer experience isn’t seen as a significant barrier to purchasing a vehicle.

 

IMPORTANT FACTORS FOR CONSUMERS WHEN BUYING A CAR

One factor important for most car buyers (91%) is the ability to test drive a car before buying it. More than 2/3 of those even considered a test drive as a “very important” factor.

When it comes to finding the right car, dealership sales staff is and remains an important factor in the process, with 8 in 10 people stating they value the advice provided by sales staff.

The ability to negotiate on the price of a new car in the dealership is also highly valued by consumers, regardless of age, gender or brand of vehicle purchased. A total of 90% said they valued the ability to negotiate, with half of those (51%) stating it helps them to get a better deal. 85% of consumers also like to negotiate on add-ons.

 

HOW APPEALING ARE NEW SALES MODELS?

7 in 10 Australians find the idea of buying a new car at a fixed-price either unappealing (32%) or are uncertain (38%). There was a high level of concern that  a fixed-price model would drive prices up for everyone, with 52% suggesting that such a model would lead to higher prices for new cars in the market.

However, consumers did note the simplicity and potential ‘fairness’ of the agency model. Overall, the appeal of the fixed-price/no negotiation model is relatively consistent across demographics, although there are tendencies for it to have greater support among younger consumers, premium brand buyers and men.

 

When it comes to the notion of buying a new car online instead of at a physical dealership, the market is divided. Almost half (46%) wouldn’t consider buying a car online, while around one in three (29%) would be willing to do so. This highlights the importance of new car Dealers in the new car purchasing process.

The Federal Budget 2020-21 handed down this week, is an important step in driving the recovery in the automotive industry and the wider economy. The Government is encouraging businesses to invest and employ more people while bringing forward tax cuts.

Disappointingly, import tariffs and the luxury car taxes remain unchanged, though tariffs are scheduled to reduce significantly in 2022-23.

For more information download AADA’s 2020-21 Budget Briefing paper which provides a summary and brief explanation of the measures that are relevant for Dealers or visit the Government’s Budget Website.

AADA 2020-21 BUDGET BRIEFING

The AADA has been contact by a research team of the University of the Sunshine Coast (USC), conducting research investigating the franchise model in the Australian automotive industry.

For an interview-based study, researchers from the USC Business School are seeking new car Dealers’ comments and perspectives on the franchising relationship and the role played by the Franchising Code of Conduct in overseeing the Australian automotive industry.

The purpose of this research is to better understand, then report the most accurate insights into the franchise sector and how it operates within the Australian automotive industry.

AADA Members are encouraged to participate in this research as your valuable insights will help to promote understanding of the franchising relationship within the Australian automotive industry.

Should you require any additional information, a complete overview of this research project is available for download below.

If you wish to participate or need further information please contact:

Adiba Fattah
PhD Researcher
University of the Sunshine Coast
E: afattah@usc.edu.au
M: +61 411 834 701

Download Information Sheet

Mark Ward and Randall Bryson from BDO’s Automotive team attended the 2020 National Automotive Dealers Association (NADA) conference in Las Vegas in February and now shared some key insights in the 2020 NADA Review.

The report explores insights from the conference and outlines recent changes that may impact dealerships. For more information and to download the report click the button below.

Women & Leadership Australia (WLA) has launched a brand new networking and learning hub called WLA Connect. This is a membership portal with three different packages to choose from. The platform is designed for women to gather, network, share and learn about being a female leader in today’s working environment. Members are able to access events, learning materials and forums where they can collaborate with women from the automotive sector and beyond. This is an important developmental initiative for women across the country. Features of WLA Connect include:

• A curated learning laboratory filled with leadership development content
• Expert masterclasses on leadership theory and practice
• Face-to-face and online networking events
• Member led contributions and recommendations
• Peer coaching, executive coaching and mentoring opportunities.

On Friday 6 December, Vinesh George (Principal of VS George Lawyers and AADA Company Secretary) hosted a “Thought Leadership Breakfast” in Sydney.

There was a fruitful panel discussion on the issue of OEM sales targets, in which we heard from AADA Board Member Nick Strauss, Industry expert Ken Thomas and retired High Court Judge Mr Kevin Lindgren AM QC.

AADA CEO James Voortman was also able to participate in the panel discussion and was given the opportunity to provide an update on the AADA’s push for an Automotive Code.

The panel and host concluded that there was legal recourse in some circumstances when sales targets were unfair.