4 Costly Mistakes UAE Dealers Make - How Your Dealership Can Avoid Them

28 Jul 2021

Mistakes are a part of everyday life, but in business failing to address common mistakes can cost you thousands. 

We’re going to show the 3 most common mistakes made by UAE car dealers in 2021 and how your dealership can avoid them.

1. Assuming someone else has your VAT covered for you

Since inception in 2018, VAT has presented many challenges for dealers. VAT has different rules, regulations and procedures for motor dealerships that differ from general VAT. 

The reality is VAT compliance is tricky. There are very specific regulations and rules for VAT and the way they apply to motor dealerships. Many accountants struggle to understand the process and could unintentionally report incorrectly. The FTA are cracking down and handing dealerships significant penalties for incorrect VAT returns.

To avoid this common mistake UAE dealers should consider using a dealer management system. A DMS like EasyCars completely automates VAT compliance for dealers – removing the risk of error and penalties. Using innovative technology, the system automatically calculates VAT amounts, and provides valuable, accurate reports for easy FTA submission.

The benefit of a dealer management system is you don’t have to spend time yourself manually calculating VAT. All VAT calculations and reports will be correct and accurate removing the risk of significant penalties. 

2. Thinking Dealership Websites are not worth the investment

It’s been proven that 92% of car buyers use the internet to research. Car buyers want to buy with ease! If you don’t have a website, you are losing sales.

A professional website allows potential customers to find your dealership 24/7. A dealer website gives potential customers all the information they online instead of the dependence of attending your dealership physically.

3. Not reporting on vehicle advertising

Let’s face it, car advertising is expensive. Advertising is an essential cost for dealers but if you fail to report on your advertising you could be wasting thousands each year. Studies show that the average motor dealership in the UAE spends over $600 AED each week on vehicle advertising. With that being said you want to be sure you are getting leads to compensate that investment.

Costs per lead is enormous in the motor industry, so dealers in the UAE need to frequently report on their advertising spend and see the leads that were generated a from the advertising spend. The benefit of frequently reporting on your advertising expenses is you can instantly change or stop spending money on advertisers that are not generating a return.

4. Not using a dealer management system

As a dealer there is an abundance of different things to do every day. Many dealers in the UAE make the mistake of managing their dealership manually. The problem with this is it is not efficient, and you are losing money in the process.

A Dealer management system simplifies and automates all day-to-day tasks of running a motor dealership. Dealers only ever enter vehicle details into the system once then all paperwork including all VAT calculations are automated. This is so beneficial as it centralises all your dealership tasks, reduces your manual labour and opens your doors for future growth.

How EasyCars can help?

EasyCars is a complete, simple and adaptable dealer management system that automates the way UAE dealers manage their dealership.

EasyCars includes all the features needed to manage your dealership with ease. EasyCars has over 40 years of experience creating simple solutions for dealers around the world and we understand your vision. The best thing about EasyCars is it is completely customisable to your dealerships needs.

Easy to get started – Easy transition – No lock in contracts

Submit the form below for a no-obligation free demo of EasyCars. Make the easy choice!

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