JLR moving to agency sales model

[bigbob]

This is really interesting and follows on from Mercedes UK doing the same. I don’t like it as it means they are going to try and reduce discounts and take money out of the supply chain by squeezing retailers and reducing the size of the dealer network which won’t help access to servicing etc.

I get why the brands want to do it as it gives them more control of margins and more ability to vary terms but I guess with the move to more and more PCP finance it was inevitable. I always liked to think that those of us interested in cars took the time to shop around and got better deals than on average but going forward everyone pays the same price. At least JLR can’t hide behind the retailers with warranty issues so there is some upside.

 

[Zep]

I suppose it also removes one of the hungry mouths from the route to market, which in theory drops the overall price (or at least reduces the increases).

 

[bigbob]

I suppose it also removes one of the hungry mouths from the route to market, which in theory drops the overall price (or at least reduces the increases).

If you believe in efficient markets then that makes sense. Personally, though, I think JLR and Mercedes are two brands which are not as premium as they think they are and this is nothing more than an attempted margin grab. Don’t blame then mind!

 

[Zep]

It’s probably a bit of both. They are certainly grabbing margin and the flexibility that will give them will allow them to make choices in terms of how they want to pitch their product.

The main dealer model is, let’s face it, a bit last century. In a connected world we don’t need a middle man, which is in essence what the MD is.

 

[bigbob]

The main dealer model is, let’s face it, a bit last century. In a connected world we don’t need a middle man, which is in essence what the MD is.

True enough. I actually can’t remember the last time I went into a garage other than for servicing. When I buy a new car I will sit in or test drive two or three brands as I’m fussy on seats and pedals but that’s it. I do like a deal though!

Tesla have shown that they can sell new cars essentially through home delivery (partially out of necessity) but what I admire is their admission that their cars don‘t really need servicing. This is something which the Germans don’t seem to understand with BEVs - remove that and what do we need large dealers for? Anyone know the alternative use for a large, glass box on the edge of town?

 

[safrane]

I prefer to read a book than a Kindle
Try clothes on than buy from a Web page
Join in a real game than play with a computer game
Touch a real woman than watch p o r n (with consent obviously), and
See a car, smell the leather, admire its design, make sure it fits, sense the driving experience, check the quality and condition... then make a decision to buy or not to buy.

If the future is a virtual life, let me die now.

 

[rockits]

I prefer to read a book than a Kindle
Try clothes on than buy from a Web page
Join in a real game than play with a computer game
Touch a real woman than watch p o r n (with consent obviously), and
See a car, smell the leather, admire its design, make sure it fits, sense the driving experience, check the quality and condition... then make a decision to buy or not to buy.

If the future is a virtual life, let me die now.

There is a lot to be said about all those things but it seems a dying breed sadly. Many are missing so much IMHO not often for the better.

 

[rockits]

Life has become too fast, too complex, too low quality with less depth and/meaning. We could achieve much more if we slowed down a bit and stopped 'advancing' so fast.

 

[DLax69]

There is a lot to be said about all those things but it seems a dying breed sadly. Many are missing so much IMHO not often for the better.

I think people necessarily gravitate to the authentic...the "futurists" predicted the demise of the bookstore, for example. And when they deny themselves connection, it makes them (and then, sadly, the rest of us) crazy. And/or dead (see "differences" thread). But I'm totally with @safrane ...I even do my correspondence on a 1961 Olivetti...

 

[Zep]

The change is that instead of buying batches of new cars, the dealers become sales agents, being paid a commission for their services rather than owning the stock before it is handed over to the client. More of a logistical change centralising admin and stock rather than a physical one in front of the client.

It’s also for new cars, so gently caressing and assessing the condition of a beautiful used model (cars ) isn’t impacted at all.

 

[DLax69]

The change is that instead of buying batches of new cars, the dealers become sales agents, being paid a commission for their services rather than owning the stock before it is handed over to the client. More of a logistical change centralising admin and stock rather than a physical one in front of the client.

It’s also for new cars, so gently caressing and assessing the condition of a beautiful used model (cars ) isn’t impacted at all.

Have you been subjected to the Carvana experiment over there...?

 

[Zep]

Have you been subjected to the Carvana experiment over there...?

I bought their first two records, but think they lost their way with the difficult 3rd album.

 

[DLax69]

I bought their first two records, but think they lost their way with the difficult 3rd album.

So true...

https://www.carvana.com/

Buy your used car from a giant vending machine without even sitting in it first!

 

[CatmanV2]

So true...

https://www.carvana.com/

Buy your used car from a giant vending machine without even sitting in it first!

Yes.

C

 

[zagatoes30]

I don't get this convenience buying of cars, but a lot of the youngsters I work with just see cards as a commodity they use and then move on they don't want or care for wasting their time they just want it to arrive in the post per se.

Manufacturers moving to the agency model makes sense but they have to then take on the responsibility for product and transaction something I suspect they will try to wriggle out of. Not an issue to me as I have no plans to buy a new car

 

[rockits]

It has also been trying to happen in the used car world with very limited success with the likes of Cazoo etc. All have blown millions with a flawed concept/model that will never make money.

It could work for a percentage of new cars, especially EVs and white goods cars that people see as a tool to do a job with no care what the car really is.

Also the Cazoo style is increasing emissions by increasing traffic and pollution just like the modern propensity of home deliveries but then returns. It is fine if these journeys are in zero emission and usong zero carbon generated power/fuel but at the moment that is far from happening.

Advancement isn't always progress.

We sometimes try to find solutions to problems that don't really exist but then don't find solutions to problems that do exist. Until we get this right more of the time going around in circles or back and forth with no real useful outcome is likely.

It is like fixing a problem on a car or many other things applies too. Do you stick a plaster on it for a bit and hope it lasts a while? I do you go to the extra time, cost and pain to fix it properly with a much longer lasting resolution?

 

[sionie1]

Often it’s the dealership experience that lets a brand down, regardless of how shiny the glass box is. Although recently when purchasing our Mercedes I noticed that their website went down every night at 2100, you couldn’t search for approved used stock etc or access the configurator, so I hope they’ve fixed that particular glitch.

 

[Zep]

It could work for a percentage of new cars, especially EVs and white goods cars that people see as a tool to do a job with no care what the car really is.

I think you have it there. At least 90% of people aren’t car people. So it works for them. Try as I might, I can’t see the problem with it. If you want to buy a car in person, you can, it’s not like it’s been banned.

We went from small car lots to car supermarkets (which I am sure people were deeply suspicious of at the time) and now this. The biggest emotion I can raise about it is well, meh.

 

[rockits]

I think you have it there. At least 90% of people aren’t car people. So it works for them. Try as I might, I can’t see the problem with it. If you want to buy a car in person, you can, it’s not like it’s been banned.

We went from small car lots to car supermarkets (which I am sure people were deeply suspicious of at the time) and now this. The biggest emotion I can raise about it is well, meh.

Yes, agreed. I'm sure it will work with many and that is fine by me. There will always be a market for others if the demand is there as the demand creates opportunity for capitalism and entrepreneurship to support. I'm fully supportive of capitalism in its purest unhindered form and love to see innovation also entrepreneurship too. It is the only way we advance and progress all at the same time.

I have no issues with anything related to this as it really doesn't bother me either way. Why would it. People can all make their own choices. What works for some doesn't work for others and we are all different. I'm all good with that.

I do think many businesses that don't provide a decent product, a decent service at a reasonable price also that cheat, lie and deceive to survive will all ultimately fail.

 

[midlifecrisis]

I prefer to read a book than a Kindle
Try clothes on than buy from a Web page
Join in a real game than play with a computer game
Touch a real woman than watch p o r n (with consent obviously), and
See a car, smell the leather, admire its design, make sure it fits, sense the driving experience, check the quality and condition... then make a decision to buy or not to buy.

If the future is a virtual life, let me die now.

The loss of human contact has been shown to be detrimental as shown with the recent intakes of children into primary school, due to the lockdowns. the internet has it's place, its great to research products and places but you can't beat that contact to make a more informed decision on a product.

How many times have to seen email ping-pong that you've been copied in, where two people are just forever in conversation, a quick phone call or chat in person would quickly resolve the issue. You can always follow up with email covering what was said. That gets my goat...and gives me delete button a workout...