What is life like with your car? Let us know and win £500 in John Lewis vouchers | No thanks
New car dealers - numbered days - Sulphur Man

Not unexpected, but BMW are sounding the end of days for the 'traditional' new car dealer. Honda are moving in this direction too.

www.autocar.co.uk/car-news/new-cars/bmw-looking-ta...s

Cars are fast becoming appliances, as technology drives the ownership experience, and customisations/subscriptions are the order of the day.

Dealers will become first line manufacturer support, service centres and (maybe) used sales. But not new car sales process, Pricing is moving up to manufacturer. Manufacturers will have much stronger control of after sales, warranty claims etc (a good thing), removing the more questionable dealers who drive a fair few threads on this forum, and ultimately cost sales to manufacturers.

This is what VW boss Piech meant when he wanted VW to be the 'Apple' of automotive

Edited by Sulphur Man on 17/11/2020 at 10:33

New car dealers - numbered days - mcb100
There is already a divergence in customer types, and manufacturers and dealer groups will have to be able to deal with both.

The majority are the ‘people buy from people’ customers, who will continue to be happy to interact with a sales exec at a dealership.

The other, albeit growing, sector are those who think nothing of sitting at a table in a well known pub/eatery chain and ordering food and drink via an app for delivery to the table rather than ordering at the bar. They will also be happy to research a car online and order it, electronically sign finance agreements and receive a brief handover from a delivery driver or via Zoom.

So far as manufacturers taking control of the sales process, they already do. A BMW sales exec, for example, has to follow a BMW process, utilising BMW brand values and procedures.
To be accredited as a sales exec, he or she will be assessed by BMW, not the dealer.

In addition, manufacturers own dealer groups - Renault Retail, Westway Nissan, Robins & Day PSA, etc.

We’ll be buying from showrooms for a good few years yet.

Edited by mcb100 on 17/11/2020 at 11:14

New car dealers - numbered days - RT

It's a process that's been going on for many years - Mercedes-Benz own most of their dealers and Renault own some of theirs.

New car dealers - numbered days - Terry W

Car sales are likely evolving like sales of white goods and electricals. People research online. Some may want to see the product "in the flesh", many don't bother. They then search for the best deals for their chosen product.

Over 50% of sales are to businesses which require a different approach to sales. A large volume of new car sales are via lease or PCP deals and often there is no trade in issue to be dealt with.

Showrooms are expensive to maintain and are probably unnecessay for the volume of extra sales they generate.

Forum members clearly have more interest and knowledge of cars than the general public, and unsurprisingly they may take more interest in what they are buying.

But a large part of the general public dislike the stress of negotiation and historically the term "car salesman" ha s been code for "get ready to be ripped off" not a compliment.

If you are spending £10-50k on a new car, to see it you may willingly drive 50 miles to do so. The current dealer network for most major brands is simply to large.

New car dealers - numbered days - Sulphur Man

Agreed on all that.

There are scenarios where the dealer may still hold some value. Eg. taking your two year old car in for an annual service and having your head turned by the latest model, with a dealer on hand to give you an 'upgrade' price. Manufacturers will need to be as sales agile as dealers are, to keep customer loyalty.

New car dealers - numbered days - misar

Having read the Autocar article there seems to be some misunderstanding in this thread about what BMW are doing.

As far as I can see BMW are not eliminating dealers from new car sales nor selling all new cars online. The model simply allows BMW to set the actual customer price and handle all the financials. Otherwise the dealer role is much the same as ever except that they act as sales agents and receive a fee, rather like estate agents. The main change is no haggling with the customer over how much (if any) of the difference in wholesale and retail price the dealer is prepared to hand over as a discount. Of course as many new car buyers trade in there may still be an opportunity to haggle over the old car's value.

New car dealers - numbered days - Avant

Interesting thread. I wonder what the proportion is of people who take test drives before buying a new car - at least those who have a choice, which some company car drivers may not.

I've always had test drives first - indeed I enjoy the process. The only time I didn't was when buying my second and third Octavia VRS estates, when I knew what I wanted. Otherwise I draw up a short-list: this year there were seven, and I tried them all.

But it is in a sense a unique process. You don't test-drive a fridge or washing-machine: and you may well spend longer test-driving a car than you would looking round a house that you're thinking of buying.

Unless test-driving goes out of fashion, manufacturers, even if they own their outlets, will need to make cars available locally. I can't see any obvious poiint in having sales outlets separate from service centres.

New car dealers - numbered days - Andrew-T

You don't test-drive a fridge or washing-machine: and you may well spend longer test-driving a car than you would looking round a house that you're thinking of buying.

Well, no. But neither do you sit in your fridge or washing machine for hours, expecting to be comfortable, and many people intend to customise any 'new' house they buy soon after moving in.

New car dealers - numbered days - mcb100
I’m not saying that test drives have gone out of fashion, but days of visiting multiple dealerships certainly have. From the last figures I saw, a retail customer only visits c2.2 showrooms before placing an order.

Edited by mcb100 on 17/11/2020 at 16:09

New car dealers - numbered days - alan1302
I’m not saying that test drives have gone out of fashion, but days of visiting multiple dealerships certainly have. From the last figures I saw, a retail customer only visits c2.2 showrooms before placing an order.

I don't have nay need to visit a lot of dealers - you can get all the information that you need researching on the net/reading reviews watching YouTube videos - by the time it comes to the time to buy a car what is required is narrowed down to 1 model and the spec you want.

New car dealers - numbered days - _
I’m not saying that test drives have gone out of fashion, but days of visiting multiple dealerships certainly have. From the last figures I saw, a retail customer only visits c2.2 showrooms before placing an order.

I don't have nay need to visit a lot of dealers - you can get all the information that you need researching on the net/reading reviews watching YouTube videos - by the time it comes to the time to buy a car what is required is narrowed down to 1 model and the spec you want.

When I bought the Kia Sportage back in february I went via carwow and did all the negotiations via their site plus a call to the salesman at JCB ebbsfleet and only did the handover at the dealers.

What BMW and others are proposing is not much different.

New car dealers - numbered days - Will deBeast

Some dealers still love to waste customers' time.

I get so frustrated at the 4+ hours it can take to negotiate something simple like a yaris.

I'd be very happy to pay to hire the car(s) I want to test drive for a day if it means getting decent prices and better use of my time.

New car dealers - numbered days - Smileyman

I would not spend the kind of money required for a car without at least sitting in the thing, checking I can adjust the seat to be comfortable, etc. Of course it could be a "very similar" demo car.

As part of my process of selecting the car, I researched online ... both vehicles and dealers, as well as visited showrooms to check for surprises ... like the touch screen that requires looking at when changing settings on the Peugeot 308 that ruled out that car, seen at the nearest of any dealer to me (less than 5 minutes' walk).

I found them all to be different, some were all over me like a rash, others rather distant allowing me to view the vehicles, sometimes I think to ensure they did not put me off with their unfortunate comments. Then there was one dealer who wanted (very early on in the process) to sit down and have a chat, take my details as if I had only a vague idea what I was looking for, they had been trained with a spiel, and I went elsewhere.

New car dealers - numbered days - Sulphur Man

That process, particularly the last paragraph, will change completely in years to come.

Also, you say 'spend the kind of money'.... that's now the exception in a PCP/HP landscape.

With the vast majority of car 'sales' underpinned by finance, many customers are drawn to the deal before the car, only buying what they can budget for.