13th March, 2014 · Dealers Perspective

Dealer Co-operation is alive and well
in Mackay

2 minutes to read

New car Dealer Co-operation is alive and well in Mackay Queensland
Major franchised Motor Dealers in Mackay may have taken a relatively new concept to a whole new level. With some lateral thinking and co-operation, they’ve proved that competitors can work together to provide better trade in prices.

The idea of disposing of unwanted used vehicle stock by a tender process is not new.  However, Mackay’s five major franchised Motor Dealers, Autocorner, North Jacklin, River City Motor Group/Powerhouse Ford, New Pioneer Motors and Carlisle Motors have taken the tender process to a new level.

The Dealer groups are now combining their unwanted stock and contracting the local Mackay Show Association to manage the tender process for a weekly disposal of vehicles to other licenced Motor Dealers. The Mackay Show Grounds is the centre of this process.

‘The local dealers have always had an ability to leave their egos at the door’ said Autocorner Dealer Principal, John Glanville. ‘A combined tender gives greater critical mass, which attracts more out of town wholesalers [and] an opportunity to buy unwanted stock without a face to face negotiation. The Show Society Secretary Steve Gavioli is very happy as well, as the administration fee they receive gives the Society an extra regular income that they would otherwise not get.’

It is still early days for the process, but the first tender saw over 90 vehicles offered, with a clearance rate of over 80%. The wholesale price per unit was improved significantly, and the wholesalers who attended were generally very positive with the process. It is hoped in the current market the likely weekly offering will average between 30 and 40 vehicles.

Dealers are very committed to maintaining the process and further improving it. For more information about how the process works, or for Dealers wishing to join the tender, contact Steve Gavioli at the Mackay Show Society.