12th March, 2020 ยท Media Release

Dealers Welcome Measures to Stimulate
The Australian Economy

The peak body representing Australia’s franchised new car Dealers welcomes the Government’s measures to stimulate the Australian economy.

“The new car market has been in recession for almost two years and Dealers will be hopeful that these measures breathe some life into an industry that is on the ropes,” said AADA CEO James Voortman.

“The expanded instant asset write-off is most welcome and will allow many more businesses to make use of the scheme to invest in a much larger range of vehicles,” he said.

“This measure will run until 30 June and I urge businesses to make use of this scheme to purchase a vehicle from their local Dealer,” said Mr Voortman.

“The extent of this industry-specific downturn cannot be underemphasised, and we will be urging the Government to extend the instant asset write-off beyond 30 June and to consider additional measures to encourage consumers to purchase new cars. Similarly, while we welcome the announcement of a time-limited 15 month investment incentive, the downturn in our industry means investment programs will likely remain subdued,” he said.

“We urge all State Governments to follow the lead of the Federal Government and adopt stimulatory measures. Stamp duty exemptions on the sale of new cars would facilitate renewal of the fleet, leading to safer, cleaner and more efficient vehicles,” Mr Voortman said.

“Dealers have high turnovers due to the high value of their products, but profit margins are incredibly slim at less than 1%. Due to these higher turnovers Dealers have missed out on some of benefits announced for smaller businesses. We would urge the Government to consider our unique circumstances,” he said.

The AADA will keep the Government up-to-date on the latest sales trends and will inform them on the need to extend or re-evaluate on the recently announced measures.

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