New figures have revealed a crisis facing Western Australia's regional motor vehicle dealerships, with motorists being warned local car yards could disappear forever.



Key points: 136 motor vehicle dealers' licences have been handed back in regional WA in the past five years, including 18 last year

136 motor vehicle dealers' licences have been handed back in regional WA in the past five years, including 18 last year Kalgoorlie-Boulder's oldest car dealership, Westland Autos, has closed after 93 years in business with 22 staff made redundant

Kalgoorlie-Boulder's oldest car dealership, Westland Autos, has closed after 93 years in business with 22 staff made redundant Regional car buyers say vehicles are cheaper in Perth

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.

A historic photograph of Kalgoorlie's Ford dealership founded in 1927. ( Supplied: Westland Autos )

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.

"Essentially you can only lose money for so long and the business has had a pretty tough couple of years.

"That's just not sustainable, so really it's a decision based on the economics."

Accessory fitter Allan Green has worked for Westland Autos for more than 12 years. ( ABC News: Jarrod Lucas )

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.

Natasha Humphries spent months researching before purchasing her new car. ( ABC News: Jarrod Lucas )

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



"It was almost $10,000 cheaper for the same model vehicle in Perth.



"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.

"If it was a $5,000 difference, I would have bought locally but $15,000 — that's a bit of a joke," she said.

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.

Alyce Hayes' favourite colour is purple, so she had the bull bar on her new four-wheel drive painted to match her hair. ( ABC News: Jarrod Lucas )

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.

"I would really urge everyone to buy local, support our local retailers, support our local car dealers, otherwise you will see more shops, more car dealers close down, and we won't have a choice of where to buy."

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.

Stephen Moir from the Motor Trade Association says conditions in the automobile industry remain tough. ( ABC News: Andrew O'Connor )

"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.

"That's a travesty and that's what we really need people to understand.

"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.



'Ghost sales' are 'endemic'

It comes after the Australian Automotive Dealer Association (AADA) recently urged regulators to stamp out the practice of falsely reporting vehicle sales figures, or so-called ghost sales.



The association's chief executive James Voortman said the practice had been "endemic in Australia for some time".

New and used car dealers are feeling the pressure of tough economic conditions. ( ABC News )

He said some car manufacturers in Australia focused solely on sales volumes, which had led to questionable reporting practices and severely constrained the profitability of dealers.



December was the 21st consecutive month in which new car sales had contracted, he said, claiming dealers were "experiencing some of the most challenging market conditions in decades".



"It's an open secret in the industry that a number of major manufacturers set incredibly aggressive sales targets placing immense pressure on their dealers to achieve these targets by reporting cars as sold, despite there being no end customer," Mr Voortman said.



"Dealers are compelled to comply with manufacturer directives as they fear being denied important incentive payments or even worse — losing their franchise agreement.



"Many dealers have been left with a backlog of unsold stock, which is difficult to clear in a profitable manner."