1:18 pm, March 9, 2023
Consumers will decide whether agency sales succeed or fail, a leading expert has told Car Dealer.
Appearing at Car Dealer Live this morning, Cambria Automobiles CEO Mark Lavery said that customers held the power when it came to a change in model.
The keynote interviewee told host James Baggott that the concept of agency sales was ‘curious’ and questioned whether it could bring ‘long-term sustainability and longevity’.
‘I’m on record as saying I am curious about the concept,’ he said.
‘I think the years we’ve had post-Covid were extraordinary and we’ll never see a marketplace like that again ever because the OEMs have to produce cars and we have to sell cars.
‘I think that agency is a really curious concept. Frankly, I don’t think we’ll decide as retailers and I don’t think the OEMs in the room – without causing any offence – will decide either.
‘I think the person that will decide will be the consumer.
‘In our industry, I think probably more than most industries, the consumer should be at the centre of everything we do.
‘I don’t see consumers asking for agency. Personally, I remain curious, and it’ll be interesting to see the long-term sustainability and longevity.’
Agency sales have been among the biggest topics discussed by our experts today at the British Motor Museum, with our panel of franchised dealers also discussing the issue at length.
John O’Hanlon, CEO of Waylands Automotive, described the model as a ‘fundamental change’ to how retailers operate.
He also questioned whether the systems needed to facilitate the change would be able to cope.
On last week’s episode of the Car Dealer Podcast, ATG boss Tim Smith said the technology to support agency sales ‘doesn’t actually exist’.
O’Hanlon told the conference: ‘With the manufacturers we’re talking to, agency isn’t just a bolt-on, it’s not an agreement, it’s a fundamental change to how we sell.
‘I think they’ve engaged well with the dealers to iron out the details.
‘I worry about whether the systems will be as good as they hope. Will they get the pricing right and will they get the volumes right?’
‘We want to get a fair reward for a job we do well’
Also commenting on agency sales was Snows Group boss Neil McCue, who questioned how the model will actually work in practice.
He called on OEMs to ensure dealers continue to be properly rewarded for the cars they sell.
‘I think the question is what is agency?’ he said.
‘There are so many different agreements that are being proposed to us. There’s a lot of brands who are sitting back and waiting, particularly the legacy brands who have a lot at stake.
‘How it works does matter, of course it does. We have the relationship with the customer and renewals are a huge part of our business. We want to get a fair reward for a job we do well.’
Paul Hendy, boss of south coast-based Hendy Group, added: ‘The long and short of it is we don’t know. We’re not in the midst of it at the moment. There’s a lot of shadow boxing and that makes business planning incredibly difficult.
‘The majority of our partners are sitting back and waiting or have played their hand and said they’re not going to be part of it.
‘[For] Those that declare it didn’t work for them, it’ll be an interesting conversation in their boardrooms.’
Also taking place at today’s conference, sponsored by Auto Trader, were a keynote interview with Google UK’s automotive industry manager Ben Gault, a manufacturer panel, a car manufacturer panel, plus White Paper presentations from event partners Cox Automotive and Close Brothers Motor Finance as well as headline sponsor Auto Trader.
