7:01 am, January 26, 2022
Plenty of dealers have expressed a distaste for agency sales but one industry boss has said he thinks it will probably be a good thing for many car dealers.
Speaking on the Car Dealer Podcast this week, group commercial director Autoguard Group Ali May-Khalil explained that for customers and dealers he believes it will turn out for the best.
May-Khalil, who joined Autoguard last year when his company Sentience Automotive Solutions became part of the group, has worked in and with dealerships for many years.
He said: ‘I think it’s probably a good thing. I know a lot of people get bent out of shape about it but I think it probably is.
‘I think for the consumer it’s way better. There’s nothing worse than lying on a sun lounger next to someone on holiday and them telling you they paid £500 less than you. It’s the same with cars.
‘I think when they standardise the pricing then dealers can focus on the experience, the consumer experience is enhanced, the pressure is off the dealer to retain margin and leads coming into the business are managed better.
‘I don’t think there’s anything to be feared as long as they understand and own the used car piece around it.’
Each week on the Car Dealer Podcast, we invite an industry guest to discuss the news of the week. May-Khalil joined the week Lotus announced it had completed an agency sales restructure with all 13 UK dealerships.
‘You’re only ever going to sell a vehicle like that with an agency model, let’s be honest, because then you take away the need of the retailer to stress about the deal or the price,’ he explained.
‘When you think about a car like a Lotus it’s not like you’re thinking about it – you buy a Lotus or you don’t buy a Lotus. With an agency model on that sort of vehicle it allows the retailer to focus primarily on the experience. Not margin, not selling it, just saying this is the Emira, giving the customer a fabulous experience and then getting paid for doing it.’
He added: ‘The manufacturer owns the data, owns the journey and I can see why they would do that. Probably less so for the volume brands but having worked for some volume brands in the past, the agency style model where we were given a handling fee for hitting a unit target is nothing new.’
You can listen to what May-Khalil had to say in full by clicking play above or by subscribing on Apple Podcasts, Spotify and most good podcast platforms.
During this week’s show we also covered Cazoo’s share price falling, how over 65s are more sustainability conscious, changing van trends and more.
You can find out more about any of the stories mentioned in the show by clicking on the links below.
- Over 65s are the most interested in talking to car dealers about fuel economy, sustainability and EVs
- Cazoo’s share price has fallen to less than half of what it was at initial valuation just five months ago
- ULEZ rollout will hit van market in 2022 with more high-mileage ‘pandemic-worn’ Euro 5 models heading to auction
- Gigafactory proposal for Northumberland wins millions in government funding
- Car dealer is one of four drivers banned after being caught at almost 100mph in the Scottish Highlands
- Thief who stole Audi from dealership thwarted by sleeping passenger on back seat
- Lotus completes agency sales restructure of UK dealership network
- Used car boss found guilty of fraud in row over £99 non-optional fee denies trying to mislead people
If you’d like to judge the podcast then get in touch with the team on [email protected].
