The Australian Automotive Dealer Association has expressed concern over the pressure vehicle manufacturers are putting on Dealers to report cars as sold when in fact there is no buyer.
“Pressure to pre-report vehicles as sold, in order to meet manufacturer sales targets, can have serious consequences as Dealers are left with a backlog of unsold stock which is difficult to clear in a profitable manner,” said AADA CEO David Blackhall.
“I have written to the ACCC Chairman, Rod Sims, and to the Assistant Treasurer, Stuart Robert, as well as the Shadow Assistant Treasurer, Dr Andrew Leigh, to outline the industry’s concerns,” said Mr Blackhall.
“Refusing to pre-report these vehicles is simply not an option for many Dealers as they fear the manufacturer will withhold important incentive payments or even worse cancel their franchise agreement,” said Mr Blackhall.
“Pre-reporting can also adversely affect consumers as the warranty can commence from the date of the reported sale rather than the actual sale, leaving the car buyer with a reduced warranty period,” he said.
“Excessive pre-reporting is only one of a number of behaviours which occur due the power imbalance that exists between Dealers and offshore vehicle manufacturers,” he said.
The AADA has been calling for an Automotive Industry Code of Conduct to better regulate the relationship between franchised new car Dealers and offshore vehicle manufacturers.