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The Australian Automotive Dealer Association (AADA) is disturbed by the ACT Governments budget decision to tax ACT motorists an additional $100 million over the forward estimates and is calling for it to be immediately removed.

This new 8 per cent tax on all new vehicles sold over $80,000 will only hurt new car buyers across the ACT during a time in which so many Canberrans are being challenged by cost-of-living challenges.

“There are over 60 new car dealerships across the ACT, who employ over 900 people including 90 apprentices, who are a significant contributor to the ACT economy,” said AADA CEO James Voortman.

“There are serious questions that need to be asked of the ACT Government as to why they are targeting new car dealers who are a significant contributor to the ACT economy,” he said.

“This new tax will only encourage consumers to purchase vehicles across the border and cement the ACT as one of the worst places in Australia to do business,” said Mr Voortman.

This new tax will directly impact middle income families, for example, a Toyota Kluger will now be $1,300 dearer, whilst Ford Rangers can now be $1,400 dearer across the Territory thus making it only more expensive for ACT residents compared to their NSW counterparts.

This is also a massive blow to the Federal Government’s ability to conclude a free trade agreement with the EU, with the ACT showing that states and territories will simply implement ridiculous taxes of their own.

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The May 2025 edition of the Automotive Insights Report (AIR), produced by the AADA in collaboration with AutoGrab, shows a rebound in used car sales, increasing by 5.4 per cent to 192,692 units, while used car listings also increased by a similar margin, indicating a stable balance between supply and demand.

“The observed increase in listings may be partly attributed to end-of-year discounts being offered in the new car market, prompting more people to upgrade their vehicles and boosting the supply of used cars,” said AADA CEO James Voortman.

“Across the vehicle segments, SUV remains the most popular vehicle of choice, experiencing the highest jump in sales, up 7.9 per cent to 83,442 units compared to April 2025,” he said.

“Average days to sell dropped to 47.6 days, the lowest this year, suggesting improved stock turnover,” said Mr Voortman.

“Used car sales rose across all states but the Northern Territory, which experienced a notable drop in sales, down 12.4 per cent to 648 units,” he said.

“Used EVs, in particular, experienced significant growth, increasing by 37.5 per cent in May 2025 compared to 8.4 per cent in April this year, suggesting a strong shift in consumer preferences toward cleaner vehicles,” said Mr Voortman.

Small vehicles in the passenger segment continue to lead in value retention, with the Audi RS3 replacing the Ford Mustang, at 105.8 per cent in the 2-4 year old age category. Japanese car maker Toyota maintains top position in the 5-7 year age bracket, with the Toyota Vitz at 100.3 per cent. The Suzuki Jimny continues to remain unbeatable in the 2-4 year old SUV category at 111.8 per cent.

Highlights from the AIR for May 2025:

• 192,692 used cars sold nationally – a 5.4 per cent increase from April.
• Total listings were up 5.2 per cent, with the Northern Territory being the only outlier.
• EV sales experienced significant growth, rising by 37.5 per cent to 3,552 units.
• Average days to sell dropped to the lowest point this year – 47.6 days.
• The Suzuki Jimny maintains top retained value position in the 2-4 year old SUV category at 111.8 per cent.
• Ford Ranger and Toyota Hilux continue to top the dealer sales list.
• In EVs, Tesla Model 3 and Tesla Model Y were the top picks once again.

VIEW MAY 2025 AIR

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The Australian Automotive Dealer Association (AADA), in partnership with AutoGrab, have released the April 2025 Automotive Insights Report, highlighting a seasonal softening in the used car market driven by April’s run of public holidays – and a marked rise in dealer market share compared to the same time last year.

Key insights from April include:

• Used Vehicle Listings Decline: National listings dipped slightly to 310,054, down 0.6 per cent month-on-month.
• Sales Volume Drops: Total transactions fell to 182,827, an 8.8 per cent decline compared to March, with notable drops in the ACT (-18.3 per cent), NSW (-12.7 per cent) and VIC (-11.7 per cent).
• Dealer Share Surges Year-on-Year: Dealers accounted for 52.5 per cent of listings and 45.4 per cent of all used vehicle sales in April, a substantial increase of 12.9 and 10.5 per cent respectively compared to April 2024. The figures underscore dealers’ growing prominence in the online marketplace, driven by better digital tools, structured inventory management, and consumer trust in dealer-backed transactions.
• Days to Sell Improved Marginally: Vehicles took an average of 49.7 days to sell, a slight improvement from 51.3 days the previous month, indicating a modest uptick in turnover efficiency.

“April is always impacted by public holidays, but what stands out is the year-on-year growth in dealer engagement,” said AADA CEO James Voortman.

“Dealers are driving a notable uplift in both stock and sales, clear evidence they’re actively stepping up to meet market demand,” he said.

“Electric vehicles remained a standout segment, defying broader trends with a 7.1 per cent rise in listings and an 8.4 per cent increase in sales compared to March. The EV used vehicle market is showing encouraging signs which, as a result should support a stronger residual valuation price supporting dealerships confidence in retailing and lenders having a better sense of risk,” said Saxon Odgers, Chief Commercial Officer, AutoGrab.

The April 2025 Automotive Insights Report offers an in-depth view of market trends, sales activity, and vehicle turnover across the country, providing essential intelligence for dealers, consumers, and policymakers.

VIEW APRIL 2025 AIR

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The Motor Trade Association of Western Australia (MTA WA), the Victorian Automotive Chamber of Commerce (VACC), and the Tasmanian Automotive Chamber of Commerce (TACC) have agreed to sign a Memorandum of Understanding (MoU) with the Australian Automotive Dealer Association (AADA), further strengthening cooperation between state, territory, and national organisations representing automotive franchised dealers.

This new agreement will build on the model established earlier this year between the Motor Trades Association of Queensland (MTAQ) and AADA, committing the organisations to closer collaboration and resource sharing for the benefit of their dealer members.

The MoU acknowledges MTAQ, MTA WA, VACC, and TACC as the peak bodies representing new car and truck dealers in their respective states and the AADA as the national peak industry body when dealing with issues of national significance. Together, they commit to coordinating policy positions, submissions, media communications, and committee representation to better serve dealers and ensure they are represented by one voice at both the state and national levels with regards to franchised new car and truck dealer issues.

“This is a major step forward for dealers in the signatory states who now will benefit from one consistent voice at both the state and national level. I am looking forward to working with my colleagues in Victoria, Western Australia, Queensland and Tasmania to ensure franchised new car and truck dealers have the best possible representation,” said AADA CEO James Voortman.

“This agreement represents a pivotal moment for our industry. By formalising collaboration between state and national bodies, we are strengthening our ability to advocate effectively and consistently on behalf of dealers. At a time when the automotive sector is facing rapid change, unity and coordination are more important than ever. MTA Queensland is proud to have helped pioneer this approach and fully supports this expanded national alignment,” said MTAQ CEO Rod Camm.

“Politicians respond best when they have one clear and strong voice to listen to. While the MTA WA has had a long working relationship with AADA, this MoU provides a great outcome for franchise dealers across Australia. Politicians will now receive one clear consistent message which should lead to better outcomes for our members,” said MTA WA Group CEO Stephen Moir.

“This agreement strengthens our ability to advocate effectively for new car and truck dealers across Victoria and Tasmania. By working in closer coordination with AADA, we ensure our members benefit from strong representation at both state and national levels. This unified approach will deliver better outcomes for automotive retailers while maintaining our focus on the specific needs of our Victorian and Tasmanian members,” said VACC CEO Peter Jones.

This agreement marks a major step towards achieving a unified and coordinated national voice for franchised dealers across Australia.

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The March 2025 edition of the Automotive Insights Report (AIR), powered by data from AutoGrab, reveals a robust 14.8 per cent increase in used car sales, with 200,566 vehicles changing hands nationally. This comes even as total active listings declined by 4.7 per cent, reflecting tightening supply across most states.

“This month’s results show the resilience of the used car market. Sales rose for the third consecutive month and there was a noticeable drop in listings this month, suggesting dealers and private sellers moved vehicles more quickly and efficiently,” said AADA CEO James Voortman.

“March also marked a noticeable shift in buyer behaviour, with the average days to sell climbing to 51.3 days which is the highest figure since November 2023,” he said.

“It’s a modest increase, but in the context of falling listings, it suggests buyers are having to search longer or be more selective, particularly in tighter segments,” said Mr Voortman.

Most states recorded sales gains, with the ACT (24.6 per cent), NSW (19.3 per cent), and VIC (17.0 per cent) leading the charge.

As usual, utes and Japanese nameplates dominated. The Ford Ranger retained its place as Australia’s top-selling used car for the 19th month in a row, and Toyota held five of the top ten spots. The Suzuki Jimny continued its remarkable run in retained value, hitting an impressive 114 per cent.

Highlights from the AIR for March 2025:

• 200,566 used cars sold nationally – a 14.8 per cent increase from February.
• Total listings fell 4.7 per cent, with declines in six out of eight states and territories.
• EV sales rose 11.6 per cent, despite a 3.5 per cent drop in listings.
• Average days to sell increased to 51.3 days.
• The Suzuki Jimny led in retained value at 114 per cent.
• Ford Ranger and Toyota Hilux were again the top-selling models.

VIEW MARCH 2025 AIR

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The peak body representing franchised new car Dealers has welcomed the release of the 2025-26 Federal Budget tonight.

“Tonight’s Budget measures to extend protections from Unfair Trading Practices and Unfair Contract Terms to all Automotive Franchised New Car and Truck Dealers will go some way to address the power imbalance between Dealers and vehicle manufacturers” says James Voortman, CEO of Australian Automotive Dealers Association (AADA).

“The AADA also welcomes the additional funding of $7.1 million over 2 years to strengthen the ACCC enforcement of the Franchising Code of Conduct” he said.

The Treasurer’s acknowledgement in his speech of these new budget measures could not have come at a more salient time in the Australian automotive industry. Only last week Holden dealers lost their class action legal case against General Motors for pulling out of Australia. This court loss comes on top of Mercedes-Benz Dealers across the country appealing to the Full Federal Court for Mercedes-Benz forcing them to change their longstanding Australian business model.

“This announcement gives our members the confidence to invest to continue to provide Australian consumers the vehicles that they love to drive whilst also take on new brands in what is a very competitive Australian market” Mr Voortman said.

However, this budget is another reminder of the continuing impost on Australia drivers through automotive taxes such as the Luxury Car Tax and Passenger Vehicle Tariff, with the Government estimated to collect almost $1.55 billion this financial year from these taxes alone.

“We consider these to be outdated taxes, which are a relic from an era when Australia manufactured vehicles here. Particularly the Luxury Car Tax which often applies to more efficient vehicles and applies to optional features which discourage consumer uptake of safety features,” said Mr Voortman.

These figures highlight recent calls made by the AADA, that Australia needs a comprehensive review of automotive taxes, particularly as we seek to accelerate the uptake of EVs and low emissions vehicles.

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The Australian Automotive Dealer Association (AADA) has expressed disappointment with the decision handed down in the Supreme Court of Victoria today which found that General Motors did not breach its agreement with Holden Dealers by failing to supply them with vehicles.

The case was brought forward by a group of Dealers who did not accept GM’s controversial compensation offer at the time the Detroit-based company killed off the Holden brand in Australia. The Dealers are now considering their options.

“Today will come as a massive blow to those Dealers who have gone through the exhausting and emotional process of taking on a giant multinational car company,” said AADA CEO James Voortman.

“The legal argument successfully put forward by GM that they had no obligation under the Dealer Agreement to supply cars to their retailers is incredibly disappointing and sets a dangerous precedent for the automotive industry,” he said.

“These Dealers upheld their end of the bargain. They invested in facilities, employed staff and dedicated their talents to selling Holden vehicles in the communities in which they operate because they were led to believe that the Holden brand was set to stay in Australia for the long haul.”

This is just another unedifying chapter in the story of how GM killed off one of Australia’s most iconic brands and harmed its 200 Dealers in the process.

“The way in which Holden pressured its Dealers into accepting compensation offers resulted in rebukes by Commonwealth Ministers, a censure by the Australian Parliament and criticism from the competition watchdog,” said Mr Voortman.

“This highlights the importance of the franchising protections announced by the Government earlier this week and it is critical that we achieve bi-partisan support and enact these measures as soon as possible.”

“There also needs to be a conversation about how franchisees access justice. Large companies are only too happy go through a court process which is costly and can takes years to get an outcome,” he said.

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The Australian Automotive Dealer Association (AADA) welcomes today’s Federal Government announcement to strengthen protections for new car and truck franchisees. The Government has committed to extending protections against unfair trading practices and unfair contract terms to all franchisees, including Australian new car and truck Dealers. The Government has also committed to prioritise work to ensure compliance with the New Vehicle Efficiency Standard is at the point of sale, rather than the point of import.

These reforms will go some way towards addressing the power imbalance which exists between new vehicle Dealers and the global manufacturers to which they are franchised. The AADA and its members have played an important and longstanding role in advocating for these additional protections.

The automotive industry is undergoing a period of great change, driven by a worldwide transition towards new technologies and business models. As this shift unfolds, there will be winners and losers – but these new protections will level the playing field for Dealers and allow them to make informed business decisions with greater security.

“These changes are a major step forward for Australian Dealers who are navigating the most significant transformation in automotive history,” said AADA CEO James Voortman.

“The exit of Holden from the Australian market, along with the ongoing court cases between Dealers and Honda and Mercedes-Benz, have underscored the urgent need for stronger protections. Dealers deserve fair treatment, reasonable contractual terms, and the ability to make business decisions with confidence. These reforms deliver on that need,” he said.

With the global automotive industry shifting rapidly due to electrification and the emergence of many new manufacturers to our shores, these strengthened protections come at a critical time. By establishing a fairer and more balanced framework for franchise relationships, the reforms will bolster investment in the market, secure jobs, and provide a level playing field for Australian businesses.

“The transition we are witnessing presents both challenges and opportunities,” Mr Voortman added. “Ensuring fairness in contracts and trading conditions is essential to allowing Australian Dealers to compete and thrive in a changing world.”

“The AADA also welcomes the additional funding provided to the ACCC to enforce the Code and looks forward to working with the regulator to ensure franchisees are protected through a tough cop on the beat,” he said.

The AADA commends the government for its leadership on this issue and remains committed to working alongside policymakers to ensure a strong and competitive franchising environment for all Australian businesses.

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The Australian Automotive Dealer Association (AADA) acknowledges today’s announcement by the Albanese Government regarding the extension of unfair trading practice protections to small businesses.

“Extending these protections to small businesses is in line with numerous submissions put forward by the AADA over recent years, and we welcome the continued engagement with the Federal Government,” said AADA CEO James Voortman.

“While we support the intent behind these reforms, it is essential that the threshold for small business covers all franchisees, including franchised new car and truck dealers. Dealers continue to be subjected to unfair practices at the hands of large multinational vehicle manufacturers,” he said.

“Recent Federal Court appeals have demonstrated how multinational manufacturers leverage existing power imbalances to their advantage, often at the expense of Australian businesses. These practices undermine fair competition and place undue strain on locally operated dealerships, which play a crucial role in the Australian automotive industry and broader economy,” Mr Voortman said.

“AADA looks forward to engaging with the Government to determine the thresholds for small business qualification and to ensure that all businesses facing unfair practices, including new car dealers, are afforded appropriate protections,” he said.

AADA calls on both sides of Parliament to immediately address this power imbalance in response to what is the most significant transition the automotive industry has seen for some time. It is imperative that fair and equitable protections are implemented to support Australian businesses navigating these changes.

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The Australian Automotive Dealer Association (AADA) is pleased to announce that registrations for the 2025 AADA Convention & Expo will open on Monday 17 March 2025.

This premier event, set to take place on Tuesday 22 and Wednesday 23 July 2025, at the Brisbane Convention & Exhibition Centre (BCEC), will bring together leading minds and innovators in the automotive industry.

As the retail automotive sector undergoes significant transformation, dealerships must evolve their business models to remain profitable and meet changing consumer demands. Under the theme ‘Changing Lanes’, the 2025 AADA Convention & Expo will explore how emerging technologies – such as artificial intelligence (AI) and advanced digital solutions – can enhance operational efficiency and create smarter consumer experiences, including integrated finance and insurance (F&I) solutions.

Attendees can look forward to a dealer-focused business programme, featuring renowned industry leaders, thought-provoking panel discussions, and cutting-edge presentations.

Event Highlights

Tuesday 22 July 2025

AADA Auto-IT Opening Breakfast – Featuring a keynote address from The Hon. Julia Gillard AC, 27th Prime Minister of Australia and Chair of the Global Institute for Women’s Leadership.

This will be followed by a compelling panel discussion, ‘Driving Change: The Strategic Advantage of Women in Automotive’, moderated by Rachel Reed Butler of Women in Automotive, with insights from top industry professionals.

AADA Sovereign Insurance General Session – Internationally respected automotive consultant Glenn Mercer will present his updated study, ‘The Dealership of Tomorrow – A Global Perspective’, offering dealers a unique outlook on the evolving global retail automotive landscape.

AADA Cox Automotive Keynote Session – A keynote interview with 2025 NADA Chairman, Tom Castriota, followed by an essential panel discussion, ‘Navigating Change: The Top 5 Policy Issues Impacting Dealers’, moderated by AADA CEO James Voortman.

Wednesday 23 July 2025

AADA youX Special Presentation – A must-attend panel discussion, ‘Embracing Change – AI, Automation & The Future of Automotive Retail’, featuring leading Australian dealer Wade von Bibra as moderator. This session will explore how AI and new technologies are reshaping the automotive retail experience.

AADA Expo & Live Stage – With over 70 exhibitors, this year’s AADA Expo will introduce a new Live Stage, showcasing cutting-edge products, services, and technologies that can help dealers drive efficiency and growth.

AADA Workshop Program – Over the coming weeks, further announcements will be made about key speakers and the AADA Workshop Program, which will feature 20 dealership focused sessions across the two-day event.

Registrations open Monday 17 March 2025, with early bird rates available until Wednesday 21 May 2025. Group booking options are also available.

Secure your place today – visit aadaconvention.com.au for more details and to register.

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