8:38 am, April 10, 2025
Mercedes has hailed the success of its controversial agency model after selling it’s 100,000th new car since making the switch.
The German brand changed to the direct-to-consumer approach back in 2023 as more and more carmakers looked to change how they sold cars.
And while the majority of brands have since abandoned the model after failing to make it work, Mercedes is one of a handful of success stories.
It has now delivered 100,0000 private retail buyers since it implemented the change with the landmark car being a Mercedes-AMG E 53 Hybrid 4Matic+.
The honour of completing that sale went to the team at Mercedes-Benz of Guildford, part of the Sandown Group, who say that the switch to agency has given them an edge over the competition.
Gavin McAllister, group managing director at Sandown Motors & head of the Mercedes-Benz Retailer Board said: ‘It is a privilege for Sandown to serve the 100,000th private retail customer to purchase a Mercedes-Benz under the Agency model.
‘This is a significant milestone for Mercedes-Benz Agents and our partners at Mercedes-Benz UK, and underlines the considerable success we are achieving together: a desirable and competitive model range aligned with the trust that customers have in our contemporary and transparent pricing proposition.
‘The Agency model has proved to be a game-changer for the Mercedes-Benz network by enabling a high volume of profitable new car sales and it’s undoubtedly giving us an edge in the market.’
The subject of agency sales was a key topic of discussion at Car Dealer Live earlier this year, with Volvo boss Nicole Melillo Shaw explaining how the Swedish brand has managed to make the model work.
She added that, despite initial concerns from dealers, customers actually prefer the brand’s ‘transparent pricing’ structure, which means that everyone gets the same deal.
The news about Mercedes’ success comes just a day after Car Dealer revealed that the brand’s in-house dealer group – Mercedes-Benz Retail Group – has now ceased trading after years of heavy losses, which mostly came before the switch to agency.
Reflecting on the success of the brand’s agency model, Sally Dennis, sales and marketing director at Mercedes-Benz UK, said: ‘Mercedes-Benz customers are full of praise for the seamless, personalised car buying journey we have developed.
‘Rating us with an average of 4.85 out of 5 stars, both new and returning Mercedes-Benz customers express satisfaction with the experience we deliver in collaboration with our network partners.’
Elsewhere, Mercedes has also confirmed that Michelle Brogden has now taken over from Andrew Dean as the firm’s UK head of sales.
The move came into effect from April 1 with Dean now having taken up the post of director of change & innovation at Lithia UK.
