Thinking of buying new?

[Rudedog]

I guess you guys who are going to buy a new car are aware of the big change?

https://www.youtube.com/watch?v=quCBnimnJs4

Sounds like no more discounts.

[fredgroves]

And it's not price fixing because you are buying direct from vw. Price fixing would be telling dealers you can't sell your stock for less than X.

He says in the comments also that the handling feet they get for a sale is less than the current profit margin though but I guess it's less capital intensive because they don't have to purchase the vehicles...

It's not good for the consumer I'd argue but it does follow the pattern of tesla for example...

[SRGTD]

@Rudedog; I was aware of this happening and agree with Fred, it’s not good for the consumer.

There was a recent article on Auto Express website on certain motor manufacturing brands adopting the Agency model - seems that a number of car manufacturers are going down this route (there’s a list of those the are - or already have - at the bottom of the Auto Express article).

https://www.autoexpress.co.uk/buying-car/357915/agency-model-its-coming-uk-car-dealers-what-does-it-mean-buyers#:~:text=The%20way%20new%20cars%20are,the%20agency%20model%20in%202024.

Begs the question(s);

• ‘what does this mean for brokers like Drive the Deal? DtD haven’t had VW passenger cars on their website for some time; just the Amarok and a few people carrier type vehicles. I’m assuming these brokers may still exist on some form or other if they have an arrangement with those car brands that haven’t gone down the Agency model route.
• I’m assuming no discounts available through Carwow if under the Agency model customers are buying from the car manufacturer rather than the dealer?

Interesting times ahead…………….

I was considering potentially moving away from VW for my next car as after 22 years of owning VW’s I fancy a change. Most of the Japanese or Korean manufacturers (e.g. Hyundai, Kia, Lexus Mazda, Nissan, Suzuki and Toyota) currently have no plans to go down the Agency model route (doesn’t mean they won’t in future though), so who knows - maybe I’ll be driving something Asian or alternatively, I may keep my current VW long term.

[Guzzle]

Hmmm we'll see.

List prices of new vehicles have already become ridiculous. If there are no meaningful discounts off list price this might lean me towards buying used, or towards a different brand.

In the video he mentioned that Skoda had been doing this for some time, yet look on Drive the Deal and there are some massive discounts on the Octavia vRS. Although am I right thinking this scheme only applies to electric passenger vehicles?

[SRGTD]

Hmmm we'll see.

List prices of new vehicles have already become ridiculous. If there are no meaningful discounts off list price this might lean me towards buying used, or towards a different brand.

In the video he mentioned that Skoda had been doing this for some time, yet look on Drive the Deal and there are some massive discounts on the Octavia vRS. Although am I right thinking this scheme only applies to electric passenger vehicles?

Good question!

From the Fleet News article at the link below;

’The agency model covers all fleet sales, as well as sales of electric vehicles (EVs) to private individuals’.

‘The franchise model continues for the sale of internal combustion engine (ICE) vehicles to private individuals’

https://www.fleetnews.co.uk/news/manufacturer-news/2022/12/02/vw-group-creates-new-sales-roles-as-it-progresses-down-agency-route

[P6GTD]

I think most of the on-line deal sites used the fleet sales side of dealers to get their big discounts.
That will be a serious threat to their business model.
Which in turn will remove the negotiating lever when dealing in person with dealer sales.
So, not good news for buying a new GTI.

[SRGTD]

There’s now information on VW UK website in relation to the agency model and Manifacturer’s Direct Pricing (MDP) for the ID range of EV’s;

https://www.volkswagen.co.uk/en/legal/mdp-explained.html

[fredgroves]

Basically this about expanding vw's margins at the expense of both dealers and customers.

There's no upside for consumers.

Vw say about "confusion" over prices. There's no confusion in my book, just a chance to negotiate a discount.

CMA complaint coming up!

[SRGTD]

Basically this about expanding vw's margins at the expense of both dealers and customers.

There's no upside for consumers.

Vw say about "confusion" over prices. There's no confusion in my book, just a chance to negotiate a discount.

CMA complaint coming up!

No confusion in my book either. I’ve always done my homework before starting negotiations on the price of my next car with the dealer - I’ve known what VW’s list price is, what the typical discounts are and how much I’m prepared to pay.

I negotiated a 16% discount on my current car. I wouldn't have bought it if I’d had to pay VW’s list price.

[fredgroves]

Cma complaint raised!