Wholesale Motor Vehicles and Parts Business Guide
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All 37 Documented Cases
Verzögerte Zahlungsflüsse durch manuelle Bonitätsprüfung
Logic-based estimate: ~AUD 30,000–70,000 per year in avoidable interest/financing cost for a mid-size wholesaler due to 3–5 extra days in average time-to-cash, plus tied-up working capital of ~AUD 410,000–685,000.Wholesale vehicle sales on account depend on completion, review and approval of a credit application, often with external credit and identity checks before a trading account and limit are issued.[1] When this process is manual or incomplete, credit approval can stretch from the expected 3–8 business days to several weeks, identical to licensing and credit history verification delays observed in dealer licensing where incomplete documentation stalls processing for 4–6 weeks or more.[1][3] During this period, vehicles remain undelivered or unsold, invoices are not raised, and dealers must continue servicing floorplan or other wholesale finance lines on stock.[4] Assuming a mid‑size wholesaler turns over AUD 50m per year on 30‑day terms and average receivables days are extended by 3–5 days due solely to slow account setup, this ties up roughly AUD 410k–685k in additional working capital (50m/365*3–5). At a typical dealer finance rate of 7–10% p.a. on floorplan or working capital lines,[4] this equates conservatively to AUD 30k–70k per year in avoidable interest and financing costs. Additional soft losses arise from customers abandoning purchases when approval takes too long versus same‑day or sub‑hour approvals promoted as a competitive advantage by leading dealers and finance providers.[2][6]
Produktivitätsverlust durch manuelle Kontoeröffnung und Dokumentenprüfung
Logic-based estimate: 360–1,080 hours/year spent on manual account setup and document chasing, equating to approx. AUD 14,000–65,000/year in labour cost for a mid-size wholesaler.Dealer and wholesaler credit applications for trade accounts commonly mirror the information intensity of Australian motor dealer licence and motor car trader applications: identity verification (100 points), national police and credit history checks, bank statements, loan statements and business plans to evidence sufficient financial resources.[3][4] Each corporate applicant may need multiple directors to submit separate declarations and bank statements.[3] In practice, wholesale account and finance teams manually chase missing documents, certify IDs, collate financials and key data into internal systems. Licensing guidance for dealers states that incomplete applications significantly extend processing times and require manual follow-up before the regulator will proceed, with processing typically taking 4–6 weeks and longer where information is missing.[3] This same pattern plays out internally in wholesale account setup, but at the dealer’s cost. If each new trade credit account consumes 1.5–3 staff hours across credit, sales and administration, and a mid-size wholesaler opens 20–30 new accounts per month, that equates to 360–1,080 staff hours per year of predominantly manual, low-value work. At an on-costed labour rate of ~AUD 40–60 per hour for finance/admin staff, this is a direct productivity loss of approximately AUD 14,000–65,000 per year, excluding opportunity cost of sales time diverted to chasing paperwork.
Produktivitätsverlust durch manuelle Garantieantragsbearbeitung
Logic-based estimate: If a warranty administrator or service advisor spends 15 hours per month on warranty claim preparation and follow‑up at a fully loaded cost of AUD 45/hour, the direct capacity cost is ~AUD 675 per month (~AUD 8,100 per year) per site. Assuming process automation and system integration could cut this by 50%, the recoverable capacity value is ~AUD 4,000 per year per site; across a 10‑site group this is ~AUD 40,000 annually.Warranty claim guides in Australia show that making a claim requires assembling contract details, vehicle information, problem descriptions, diagnostics and quotes, often via phone, email or online portals.[1][2][7][8] NSW Fair Trading’s dispute process further illustrates the document burden, requiring invoices, receipts, sale contracts, repair estimates, quotes, job cards and technical reports when issues arise.[3] Even when claims are straightforward, staff spend time collecting and re‑keying data that already exists in workshop and DMS systems. For every rejected or queried claim, additional time is spent clarifying coverage, resending documents or liaising with approved repairers as required by administrators such as AWN Insurance and NWC.[2][7] This reduces available capacity for customer-facing work and can create bottlenecks during busy periods.
Fehlentscheidungen bei Kreditlimits und Zahlungskonditionen
Logic-based estimate: ~0.5–1.0% of annual revenue lost to bad debts and related financing costs from poor credit decisions, i.e. approx. AUD 250,000–500,000 per year on AUD 50m turnover.Motor vehicle wholesale and floorplan finance in Australia relies heavily on the dealer’s demonstrated financial resources, sales volume and creditworthiness to determine credit limits.[4] Licensing regimes require detailed declarations of personal finances, bank statements and proof of sufficient resources precisely because regulators recognise the risk of insolvency and creditor losses in motor trading.[3] When similar rigour is not applied or is applied inconsistently in customer credit approvals, wholesalers risk extending excessive credit to undercapitalised dealers. Industry benchmarks in B2B trade credit commonly show bad debt expenses in the range of 0.5–2% of revenue for businesses with weak credit controls. For a conservative mid-range assumption in a relatively collateralised industry like motor vehicles, a 0.5–1.0% revenue impact is plausible. For a wholesaler with AUD 50m annual turnover, this equates to AUD 250,000–500,000 per year in bad debt write-offs and related interest and collection costs attributable to suboptimal credit decisioning. Additional indirect losses include higher floorplan interest on aged or returned stock when customer failure leads to buy-backs or delayed resale.