The Most Common Mistakes UAE Car Dealers Make in 2022

01 Mar 2022 Helpful Tips


Running a Motor Dealership isn’t easy. With so many things to do, mistakes are going be made. But in the business of selling cars, making a slight mistake can have a detrimental effect on sales or your reputation.

Here are the most common mistakes UAE Car Dealers Make in 2022 and how your dealership can avoid them.

1. Paying too much for Car Stock

Even though UAE used car prices rose 30% in 2022, that doesn’t mean you should overpay to source new stock for your dealership. The problem with paying too much for car stock is it limits your dealerships profitability when you go to sell the car later.

To reduce the risk of paying too much, UAE car dealers should use Car Valuation tools to assist with determining a good purchasing price. The benefit of using Car Valuation tools is it lets you know how much similar cars are selling for, current resale prices and how much profit you can make if you purchase the car. If the numbers don’t add up don’t purchase the car.

Related Article: The Biggest Challenges Facing UAE Motors Dealers in 2022.

2. Not Reporting on Advertising Spend

Advertising is an important but expensive task for all motor dealers around the world. One of the biggest mistakes UAE car dealers make is not reporting on advertising spend and the return on investment (ROI).

To avoid overspending on your car advertising, UAE motor dealers need to frequently report on their advertising spend and how many leads they received from each advertiser. Find out how many leads are being received from an individual advertiser and see how much you are paying to get that lead. Most importantly you need to see if the leads that you received go on to convert into a full paying customer. If the lead does not convert into a sale your dealership will be haemorrhaging money.

The benefit of reporting on your advertising spend is you can immediately stop spending money on advertisers who don’t provide good results.

Related Article: 5 Car Advertising Strategies for UAE Car Dealers in 2022.

3. Employing the wrong sales staff

Many businesses make the mistake of hiring the wrong staff member. The problem with making the wrong hiring decision is it costs the dealership sales, time and potentially reputation.

Before you hire a sales staff member, make sure you provide them with the correct training and onboarding. Set goals and KPIs for your staff members to achieve and have a probation period. In a sales orientated business you need to make sure that you terminate the employment fast if it is not working out. The last thing your dealership needs is to have one member bring the entire team down.

Related Article: Reasons Why UAE Motor Dealerships Fail – How your dealership can avoid them.

4. No Dealer Website

92% of Emirati Car Buyers use the internet to look for a car instead of attending a dealership. A massive mistake many Dealers in the UAE make is not having a Dealer Website. If your Dealership doesn’t have your own Dealership Website, you are losing sales!

A dealership website is your own online showroom. The benefit of a dealership website is it gives potential customers the ability to see what cars you are selling without having to attend your dealership in person. To be successful in 2022 UAE Motor Dealers MUST have a Dealer Website.

Related Article: Why UAE Car Dealerships MUST Have a Website.

5. Using multiple systems to manage the dealership

The most inefficient thing you can do is use multiple systems to manage your dealership. Using multiple systems to manage your dealership wastes valuable sales time and increases the risk of error.

To increase efficiency, UAE Motor dealers, need to use a centralised dealer management software like EasyCars. EasyCars dealer management software automates the buying and selling of motor vehicles in the UAE on a cloud-based, industry specific management software.

EasyCars automates essential tasks like as Stock Management, VAT Calculations, Advertising, Accounting, and Business reporting.

To learn more about EasyCars click here.

Final Word,

Everybody makes mistakes but what will determine the success of your dealership is the way you learn, minimise, and grow from the mistakes you make. The 5 mistakes presented above are the most common mistakes made by UAE motor dealers in 2022 and can be avoided by the solutions mentioned.

To read more advice like this, visit our news section here.

About EasyCars

EasyCars by Jeal is an UAE Motor Industry Specific, Dealer Management Software that automates the day-to-day tasks of running a motor dealership in the UAE.

EasyCars includes everyday management features like Stock Management, Automated Advertising, VAT Calculations, Xero Accounting Integration and Business Reporting in the one central management software.

For a no-obligation free demo of EasyCars submit the form below.

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