7:22 am, May 1, 2025
A Mini dealer has spoken out about the ‘disruption’ agency sales have caused for the brand since it was introduced on March 1.
The small car maker has swapped its sales model to one which will see the brand deal with car sales on its website and its dealer facilitate the hand over of cars.
Agency is designed to offer customers a no-haggle price and the convenience of buying from home, but the reality, says one dealer, is a reduction in leads of 30% and poor sales.
Writing for Car Dealer under the promise of anonymity, the Mini franchise holder says the ‘rhythm of retail’ has been disrupted.
He said: ‘It’s now two months since we transitioned to the agency sales model, and while we expected some disruption, the early indicators are starker than anticipated.
‘New car enquiry levels are down around 30%. Without the same level of retailer-led promotional activity or (perhaps) flexibility on pricing, customer engagement has dipped now Mini is responsible for mainstream tactical marketing.
‘The showroom experience has changed too. The belief that customers would move towards most of the transaction on-line, including reservation of test drives (with limited dealer input) simply isn’t happening.
‘With customers increasingly well-informed on pricing from Mini channels, the retailer’s ability to influence the sale on the day feels reduced too.’
Targets
The Mini dealer said he had seen sales volumes reduce too and that their former tactics to push deals were no longer available to them.
And, despite this, sales targets from the manufacturer were still very much in place.
‘The traditional tools we once used to drive short-term volume – campaign pricing, physical stock offers, local sale events – have all but disappeared,’ said the dealer.
‘The rhythm of retail has changed, but the expectations of sales targets hasn’t. Mini is now flexing some of the initial prescriptive processes to drive volume.’
The dealer also bemoaned the fact used cars have been impacted too with reduced numbers available to sell.
He added: ‘Another consequence that’s becoming increasingly visible is the shortage of young used cars, ex-demonstrators.
‘Under the wholesale model, demos served multiple purposes: marketing tools, retail stock, and, eventually, strong used car inventory.
‘With fewer cars flowing through demonstrator use – and with those that are being more tightly controlled – our used stock pipeline has taken a hit. The knock-on effects on used car performance and profitability are already being felt.’
Despite his concerns, the Mini dealer did not think the agency model was doomed to failure.
He added: ‘None of this is to say the agency model is unworkable, but the practical, on-the-ground experience is different from the theory.
‘We’re learning in real time how to adapt, how to refocus our teams, and how to maintain customer experience and commercial viability in a world where some of our traditional levers have been removed.
‘These early months have highlighted the need for continued collaboration, transparency, and realism between OEMs and retailers.
‘If agency is going to work for all parties, it must be more than a shift in contract – it must be a shared evolution of how we sell, support, and serve our customers.’
A spokesperson for Mini said: ‘On March 1, Mini successfully launched the agency model in the UK and Ireland, joining 15 markets across Europe in delivering a seamless customer experience both online and in showrooms.
‘A couple of months in, we’re pleased with how the transition is progressing. We’ve received positive customer feedback on the new experience and key business metrics such as incoming orders and sales are tracking in line with expectations.
‘Our retail partners are a vital part of the Mini customer experience and we’re continuing to engage closely with them as we refine and optimise the new retail model together.’
Mini sales so far this year are up marginally by 2.2% at 13,049 units, according to the SMMT’s new car sales figures to the end of March.
Yesterday, Car Dealer revealed that VW had canned agency sales across all its brands, but insists it is still its ‘long term’ aim. BMW, Mini’s ultimate owner, has delayed the introduction of agency, while Stellantis and JLR have paused their plans.
Meanwhile, Mercedes and Volvo have continued with their agency sales models. Last year, Mercedes saw sales rise by 17% to 102,757 cars and Volvo rose 32% to 66,408 sales.
