Jim Holder
INSIDE INFORMATION
Will there be discounts with the ‘agency model’? Officially, no. But it looks likely
HAGGLING OVER THE price of your new car may soon be a thing of the past, if you believe the hype, with the price you see being the price you pay. Already manufacturers have tried this with some success in smaller markets. The UK won’t be far behind.
Under this so-called agency model, car makers are seeking to take ownership of the customer journey from enquiry to sale, with the retailer involved only to hand over the car and handle aftersales. Instead of having to commit to stock and work to margins and targets, the retailer will receive a flat handling fee, a deal many are happy to accept given the amount of work and small profits from new cars.