NOTHING has changed regarding consumers’ ability to purchase and maintain their vehicles as Melbourne returns to Stage 3 lockdown, said the state’s peak automotive body.

The Victorian Automobile Chamber of Commerce (VACC), which represents more than 5000 auto businesses, said the lockdown did not affect the majority of automotive operations across the state and that they will remain open.

VACC CEO Geoff Gwilym said: “The automotive industry remains open for business.”

“So, whether Victorians wish to purchase a vehicle, or service and maintain the vehicle they already own, their local automotive business is ready and equipped to provide the best and safest service possible,” he said.

“Car, motorcycle and farm machinery dealerships; automotive repair workshops; body repair businesses; tyre dealerships: every sector in automotive remains open and thousands of businesses remain ready to service the needs of Victorian motorists.”

Industry advice shows that those businesses that remain competitive are winning compared with those that hibernate.

VACC spokesman David Dowsey said: “Those businesses that have remained active, have retained their marketing activities, and who have innovated and added new offerings, are going to do well in the long term.”

“The VACC has been in close contact with its members offering a great deal of practical support, through the provision of valuable information – particularly around industrial relations,” Mr Dowsey said.

“There has been lots of communication and marketing material provided, along with free counselling for members, which is making a big difference in the lives of a lot of people.”

Mr Gwilym said dealers were experiencing some confusion from government bulletins issued on workplace opening hours and arrangements.

“There were some queries over the use of the term ‘essential’ being replaced with the word ‘necessary’ in government media and advice on COVID-19,” he said.

“Automotive is not restricted hence the term ‘necessary’. This is consistent with the notes in clause 6 of the stay-at-home orders,” he said.

“In the midst of major business closures across many sectors, most automotive-related businesses have remained open, and, at the same time, have adapted to suit these difficult times.

“VACC member-businesses have access to the chamber’s comprehensive suite of information and support services, meaning they are up-to-date with the latest safety measures, including correct hygiene procedures and social distancing measures,” Mr Gwilym said.

Meanwhile, dealers and repairers are on notice that they have a lot to be gained by getting in touch with customers and making sure that their websites highlight the fact they are open for business.

For example, digital marketing and advertising firm AdTorque Edge told GoAutoNews Premium recently that, at the start of the COVID-19 period, three dealerships of the same brand that it studied in Melbourne were averaging 10-15 new car sales per week.

When the dealerships increased their advertising and promoted they were open for business, their new car sales increased to 22-26 vehicles per week.

By comparison, two other competitors of the same brand, which did not advertise actively during this period, continued to record weekly sales of 12 and 14 a week, whereas their regular sales figures, outside of COVID-19, were around 35-40 new cars per week.

The joint managing director of AdTorque Edge, Gavin Cox, told GoAutoNews Premium that smart dealers continued to operate their business through the pandemic while others lost sales by reducing their exposure.

“Dealers who ran sale events during the COVID-19 period ended up selling approximately the same number of cars as they would during a normal month,” Mr Cox said.

He said some dealer groups in Queensland, NSW and Victoria ran stimulus sales in early May and, in the week of the sale, “it was probably the best week they have had all year”.

“While some dealers were talking about turning the lights off and shutting for a while, one dealer in Brisbane said he was going to have a crack at moving some cars with a stimulus event and he sold 40 cars on the Saturday and over the Friday, Saturday and Sunday sold 90 cars,” he said.

Mr Cox said that his data also showed that dealers who have been spending money on digital advertising during the COVID-19 period have been receiving, on average, 43 per cent more website traffic.

He said that, on average, dealership sales have reduced by 60 to 70 per cent over the COVID-19 period.

“But those dealers who have advertised and promoted that they are open for business were experiencing less of a sales drop; with only a 30 to 40 per cent sales reduction,” he said.

The VACC said that with dealers still being able to trade freely, it remained imperative that businesses put in place protective measures for customers and staff.

“Businesses are also offering innovative ‘contactless’ services that provide a level of certainty at this time, including key drop-off box facilities; contactless payment (‘tap and go’, online banking or over the phone payments); emailing of quotes and invoices; repair order authorisation via SMS or email; and pick-up and delivery of vehicles,” Mr Gwilym said.

By Neil Dowling