5 Common UAE Car Dealer Frustrations and How Your Dealership Can Avoid Them

28 Jun 2022 Helpful Tips

Running a Motor Dealership isn’t easy. With so many things to do, frustrations can and will happen. Frustrations will always occur in business, you can’t stop them entirely, but what will determine if your dealership is successful or not is the way you minimise the impacts frustrations have.

Here are 5 Common UAE Car Dealer frustrations and how your dealership can avoid them.

1. Vehicles That Take Too Long to Sell

As a Motor Dealer in the UAE your number one priority is to sell your vehicles as fast as possible. When vehicles don’t sell as quickly it can be extremely frustrating. What makes things worse for your dealership is the longer that your vehicles sit around for, the more your dealership has to pay.

Let’s be honest, your cars won’t ever sell overnight, it will take time. To avoid having vehicles sit in stock for long periods of time, your dealership needs to source vehicles that customers want. Find out what the most popular cars in the UAE are. See what prices they are selling for and try to find a way to source them yourself to sell. To sell cars quicker you need to offer customers the vehicles that they want!

2. High Vehicle Advertising Costs

Vehicle Advertising is always going to be one of the most important tasks for all motor dealers. Without it, it’s extremely hard to find customers to sell to. A major frustration for Motor Dealers in the UAE is high vehicle advertising costs.

To minimise your dealerships vehicle advertising costs, you need to have a strong reporting system in place. The benefit of having a strong reporting system is your dealership can quickly identify what advertisers are providing a return on investment and what advertisers are not. For those advertisers that are not providing a good amount of leads, your dealership can quickly stop paying them money and re-direct those funds to other areas of your dealership.

Related Article: 5 Vehicle Advertising Mistakes UAE Motor Dealers Make in 2022.

3. VAT Compliance

Since inception in 2018, VAT has been a frustrating task for Motor Dealers in the UAE. What makes VAT compliance so frustrating for dealers, is motor dealership VAT is much different to the everyday VAT– making it really easy to make a mistake.

To reduce frustrations during the VAT compliance process, Motor Dealers in the UAE should look to implement an industry specific, dealer management software like EasyCars. The benefit of using a system like EasyCars is it automates the entire VAT Compliance process. EasyCars automatically calculates VAT, syncs to Xero accounting platform, and generates management reports for quick and easy submission to the FTA.

Related Article: EasyCars Releases New Ground-breaking VAT Automation Tools for Motor Dealers in the UAE.

4. Vehicle Stock Shortages

Vehicle Stock Shortages are by far the biggest challenge facing UAE motor dealers in 2022. With International New Car delays, used cars have become increasingly popular in the UAE. As such, high quality used car vehicles have been hard to source and increasingly expensive.

However, there are still ways Motor Dealers in the UAE can source good quality, used cars at the right price. The secret to gaining more stock for your dealership is thinking outside of the box. One of the best ways to find cars to sell is by simply reaching out to past customers. Give them a call and see if they are or know anyone who may be looking to sell their current vehicle. Yes, this may be a bit of a manual task but if you were able to source some new cars to sell its well worth it.

Related Article: How Car Dealers in the UAE Can Source More Vehicle Stock in 2022.

5. Finding New Revenue Streams

As a dealership owner, your number one priority is to generate as much revenue as possible. For many dealerships, finding new ways to generate revenue is often hard and frustrating. Fortunately for dealers in the UAE there are ways your dealership can generate more revenue.

A great way to generate more revenue for your dealership is through dealer finance. By offering customers competitive finance offers, your dealership will be able to earn commission from all customers that convert into loan customers. The benefit of dealer finance is you don’t need to do anything. A third-party finance broker can do this on your behalf and provide instant commission for leads that convert.

Related Article: New Opportunities for UAE Motor Dealers in 2022.

Final Word,

There are always going to be frustrations when running a Motor Dealership. To be successful, motor dealers need to implement solutions that minimise the effects frustrations have. The 5 frustrations mentioned above are common in the UAE motor industry and can be easily avoided through the solutions presented.

We hope you enjoyed reading this article. To read more articles like this, please visit the EasyCars latest news page here.

About EasyCars

EasyCars by Jeal is a UAE Motor Industry Specific, Dealer Management Software that automates the daily tasks of running a motor dealership. Using the latest technologies, EasyCars removes frustrations experienced at the dealership - opening the doors to future growth.

EasyCars features include Simple Stock Management, Automated Advertising, Automatic VAT Calculations, Xero Accounting Integration, Facebook Automotive Inventory Ads, Dealer Websites and Business Reporting in the one central management software.

To learn more about EasyCars or to arrange a no-obligation free demo of the software, please submit the form below.

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