Media releases

Melbourne dealership trading starts strong

2 November 2020

 Early signs from franchise vehicle dealers is that trading conditions are good, post Victoria’s COVID lockdown.

A survey of members by the Victorian Automobile Chamber of Commerce (VACC) shows dealer and consumer confidence is up.

“The first weekend of post-Stage 4 lockdown saw a very buoyant buyers’ market, according to the dealers we surveyed,” said VACC CEO, Geoff Gwilym.

“Vehicle sales on average were up more than 20 percent for the corresponding period in 2019, and appointment levels are up to pre-COVID levels.”

Consumers in dealerships over the weekend of 31 October/1 November noted and appreciated the way dealers were trading with comprehensive COVIDSafe Plans in place. 

“Buyers felt safe at dealerships and were patient with the new COVIDSafe conditions. They see the work dealers have put in to making the dealership experience safe.”

VACC’s dealer survey showed that outer metropolitan Melbourne regions were particularly strong, including areas such as Frankston, Werribee and Melton. One Frankston dealership sold 28 new cars in one day, a Saturday sales record at the dealership. The Melton dealerships surveyed reported sales were up 33 percent week on week (2019 versus 2020). Double digit sales were also reported at several Werribee dealerships.

“New car sales are strong, at this stage. But dealers report that used cars are still difficult to source. This is expected to ease with increased used car trade-ins as new car sales increase,” said Mr Gwilym.

“It has been a successful first weekend of trading, with great sales numbers, but dealers need certainty.

“The State Budget on 24 November could assist dealers if the Andrews Government provides motor vehicle duty relief. We need to see duty cut on aftermarket accessories sold with new cars. We need to see the super luxury duty removed, too,” said Mr Gwilym.

ENDS