Motorists warned to buy local or watch car dealerships disappear as regional car yards close

Data from Consumer Protection shows 136 motor vehicle dealers’ licences have been handed back in regional WA in the past five years.

Eighteen dealerships returned their licences last year alone, including businesses in Geraldton, Bunbury, Donnybrook, Wagin, Halls Creek, Kalgoorlie-Boulder, Esperance, Dunsborough and Busselton.

The figures do not include Westland Autos, the Ford and Mitsubishi dealership founded in the WA Goldfields in 1927 by Jack Hehir, which closed its doors last month.

About 22 staff at the Kalgoorlie-Boulder dealership were made redundant.

Westland Autos dealer principal Rob Murison said the business was no longer viable, revealing losses of more than $1 million.

“Over the past two financial years our losses are well in excess of a million dollars,” he said.

“That’s just not sustainable, so really it’s a decision based on the economics.”

Bargain prices at ‘closing down’ sale

Natasha Humphries spent months researching the best deal for a new car and scored herself a bargain at Westland Autos’ closing down sale.

The 33-year-old from Kalgoorlie was sad to see the local business shut its doors.

But there is no question in her mind that car prices are cheaper in Perth, where she said there was a much bigger selection.

“The only reason I got the price I wanted was because of the closing down sale,” she said.

“That sort of difference definitely makes it worthwhile going to Perth, paying for the cost of travel and accommodation, compared to buying in Kalgoorlie.”

Kalgoorlie mother-of-five Alyce Hayes bought a new four-wheel drive in Perth two weeks ago and said the same model would have cost her $15,000 more in her home town.

The price difference meant she could order accessories including a purple bull bar to match her favourite colour and the purple streaks in her hair.

“It suits my personality to a tee,” she said.

Kalgoorlie-Boulder Chamber of Commerce and Industry CEO Simone de Been said every car purchased locally supported the wider community.

“There’s a real flow-on effect,” she said.

“When you spend money in the Goldfields, you’re spending money with the people who employ your kids, give money to schools, give money to sporting organisations.

Online car sales and economy blamed

WA’s Motor Trades Association CEO Stephen Moir said the rise of online car sales, tightening economic conditions, and the cost of maintaining a franchise has taken its toll on regional businesses.

He said the closure of a long-running franchise like Westland Autos would have a ripple effect through the community.

“That’s very sad when you see what we would classify as a foundation business, a business that’s been around for that long, servicing the region and it just closes shop because of financial hardship,” he said.

“If you support strongly your local dealerships, we can prevent that from happening.

“It’s more than just losing a car dealership, it’s losing a very strong supporter of the community in terms of sponsors, but also a very significant employer and a trainer in the region.”

The WA Motor Trades Association has been speaking with the Australian Competition and Consumer Commission (ACCC) about ongoing conflict between manufacturers and dealers.

This article is from ABC News, you can read the full article here:

https://www.abc.net.au/news/2020-02-10/regional-car-dealerships-struggling-to-survive/11940410