A carsales.com.au survey of over 6000 Australian automotive dealers has shown that Cash flow is their chief concern.
The survey sought to establish dealers’ fiscal and emotional wellbeing during Australia’s COVID-19 response.
Compiled last week (April 2-3), it polled around 6000 Australian car dealers and attracted a strong response rate of over 5.0%.
The respondents were almost evenly split across independent and franchise new and used dealers.
The survey showed three quarters of respondents were most concerned with Cash flow, followed by ‘Consumer Sentiment’ and then ‘Standing down staff’. Of least concern to the respondents were Replenishing stock and Floor Plan [stock finance].
Two thirds of respondents (67%) of the carsales dealer survey estimated their total turnover across the components of their businesses had been impacted by more than 50% by the COVID-19 response. Over 80% of dealers believed it would take longer than 6 months for their businesses to recover.
An overview of the dealer survey is here.
“carsales acted early and decisively to assist dealers with a zero-fee period for April and extended payment terms,” Michael Holmes, carsales Executive Director Dealer stated.
“This survey shows clearly that was the right decision. It’s important we all step up to the plate in these challenging times,” he stated.
“The survey respondents came from a wide spectrum of our dealer customers. It’s indicative that the COVID-19 measures, although necessary, are making Australian dealers’ lives pretty tough at this time. This was clearly evident in some of the verbatim responses from dealers.”
As part of carsales’ dealer assistance package, availability of the company’s Employee Assistance Program was extended to dealer customers and their staff.
“Over 70% of those who replied to the survey say they are feeling okay in themselves, but that leaves almost a third who are not,” Holmes stated.
“I’m again encouraging those of you out there, who are doing it tough during this time, to please consider the service,” Holmes said.
More information on carsales EAP program is here.
Holmes stated the dealer survey would assist carsales in planning during the business restrictions created by Australia’s COVID-19 response.
“While many dealers have the structures in place to respond to this challenging period, we are clear that carsales has a role to play in assisting the changes current conditions require,” Holmes explained.
“In addition to our financial dealer support measures, carsales is responding by offering as much product innovation, practical information and assistance as possible. These include adding video to listings at no extra cost, carsales ‘badges’ which champions the features of dealers’ ‘virtual showroom’ on carsales and regular information on everything from customer sentiment to tips and selling hints,” Holmes explained.