What are main dealers contracted to do?
Discussion
I've visited a few dealers recently when looking for a band new car. Glad to say overall the experiance has been quite good. There has been the occasional 'qualify' issue or just oddball salesman but generally, quite a positive experience.
It made me think a little about how dealerships are set up and how they work. As a kid I always thought a main dealer was buying from the manufacturer. You want a brand new Renault, you go to the Renault dealer and buy one.
I hadn't realised main dealers were franchises of a manufacturer. I'm not even sure now if thats the case? I was surprised when I went to Jaguar to buy a Jaguar warranty to be told only a H.A Fox one was available.
I find it a bit confusing as I understand the BMW warranties are manufacturer backed and you can buy these on any used Beemer. I've heard mentions of Mercedes Brooklands? being operated as a 'brand' seller rather than a dealership.
What is it main dealers are actually contracted to do by the manufacturer? Do they have to stock all cars? Do they have to have a demo vehicle? Can they sell other manufacturers cars? Are the warranties on used cars backed by the manufacturer or dealer? If it's dealer backed can they use cheaper parts? Do they all have to comply with special offers? Do they all have to sell keyrings? Do the coffee cups have to be branded? etc.
Cheers
It made me think a little about how dealerships are set up and how they work. As a kid I always thought a main dealer was buying from the manufacturer. You want a brand new Renault, you go to the Renault dealer and buy one.
I hadn't realised main dealers were franchises of a manufacturer. I'm not even sure now if thats the case? I was surprised when I went to Jaguar to buy a Jaguar warranty to be told only a H.A Fox one was available.
I find it a bit confusing as I understand the BMW warranties are manufacturer backed and you can buy these on any used Beemer. I've heard mentions of Mercedes Brooklands? being operated as a 'brand' seller rather than a dealership.
What is it main dealers are actually contracted to do by the manufacturer? Do they have to stock all cars? Do they have to have a demo vehicle? Can they sell other manufacturers cars? Are the warranties on used cars backed by the manufacturer or dealer? If it's dealer backed can they use cheaper parts? Do they all have to comply with special offers? Do they all have to sell keyrings? Do the coffee cups have to be branded? etc.
Cheers
Cars (vehicles) are sold three ways,
1. by the manufacturer
2. through franchised dealers - you might call these "official" dealers
3. through independent garages - who will get their cars from 1 or 2 above. This is relatively rare.
Most car manufacturers sell retail in UK only through franchised dealers. These are independent businesses. They may hold just one franchise (i.e. one garage in one town) or they may hold many franchises (i.e. several garages in several towns).
Mercedes car sales are unusual in UK. Over the past 15 years or so they have gradually been terminating the franchises and selling cars themselves direct to the retail customer. They don't just kick the franchisee in the nuts but buy the business from them. i.e. Mercedes UK buys the premises and takes over the staff.
All manufacturers will have a "fleet sales" operation which can be independent from or dovetail with the dealer network. Fleet prices are negotiated directly with the manufacturer and supply of the vehicles may be direct from the manufacturer or through a franchised dealer.
Mercedes still have a franchised dealer network in UK which deals with their commercial vehicles - trucks and vans.
1. by the manufacturer
2. through franchised dealers - you might call these "official" dealers
3. through independent garages - who will get their cars from 1 or 2 above. This is relatively rare.
Most car manufacturers sell retail in UK only through franchised dealers. These are independent businesses. They may hold just one franchise (i.e. one garage in one town) or they may hold many franchises (i.e. several garages in several towns).
Mercedes car sales are unusual in UK. Over the past 15 years or so they have gradually been terminating the franchises and selling cars themselves direct to the retail customer. They don't just kick the franchisee in the nuts but buy the business from them. i.e. Mercedes UK buys the premises and takes over the staff.
All manufacturers will have a "fleet sales" operation which can be independent from or dovetail with the dealer network. Fleet prices are negotiated directly with the manufacturer and supply of the vehicles may be direct from the manufacturer or through a franchised dealer.
Mercedes still have a franchised dealer network in UK which deals with their commercial vehicles - trucks and vans.
Rick101 said:
What is it main dealers are actually contracted to do by the manufacturer?
There will be a long and detailed written contract (the franchise agreement) which sets it all out.Rick101 said:
Do they have to stock all cars? Do they have to have a demo vehicle?
That depends what the agreement says. Usually such things will be discussed and agreed from time to time. The manufacturer holds a powerful card - it can "incentivise" dealers to do certain things. Typically the dealer's profit margin on selling a vehicle is very small but the manufacturer will pay bonuses based on,- number of cars sold in a month
- type of cars sold in the month
- number of cars serviced in the month
- parts stock level
- customer satisfaction surveys
- clean reception area
- etc etc
Rick101 said:
Can they sell other manufacturers cars?
Usually prohibited. There is a special dispensation under European law which allows manufacturers to insist on single brand dealerships. The reason is to allow consistent quality of training and parts supply etc.Rick101 said:
Are the warranties on used cars backed by the manufacturer or dealer?
Essentially by the manufacturer, but it's often not black and white.
Rick101 said:
If it's dealer backed can they use cheaper parts?
No. The franchise agreement will state that only parts supplied by or approved by the manufacturer can be used.Rick101 said:
Do they all have to comply with special offers?
Depends what the agreement says. And note my earlier comment about incentivisation with bonuses.Rick101 said:
Do they all have to sell keyrings?
Depends what the agreement says. And note my earlier comment about incentivisation with bonuses.Rick101 said:
Do the coffee cups have to be branded? etc.
Depends what the agreement says. And note my earlier comment about incentivisation with bonuses.Essentially the whole thing is dictated by the manufacturer. They do, however, consult fully with dealers to make sure the system is working properly for both of them. Essentially the dealer earns as much profit as the manufacturer allows him to make - and he has to tick a lot of boxes to earn the maximum. It's not just a case of the dealer buying cars from the manufacturer at a fixed price and selling them however he likes.
In simple terms, this is how it works. I'll use Volkswagen as I work for them so know how it works.
Volkswagen AG based in Germany create the products.
Volkswagen UK are a subsidiary company of VOlkswagen AG and are the UK imports for Volkswagen's.
The average person off the street cannot buy a vehicle directly from Volkswagen UK, dealers have to buy them, or in some cases, huge companies can buy them directly from Volkswagen UK.
Volkswagen UK then have lots of different Franchises. For instance, Listers, Inchcape, Sytner, JCT600 to name a few.
Those franchisee's just sell the products on behalf of Volkswagen AG, and buy the vehicles from Volkswagen UK (who originally import them from Volkswagen AG).
The franchisee's have "dealer standards" and yearly contracts which state what practices, facilities, coffee cups, etc. they need to do/use/vehicles they need to run.
In terms of used vehicles, if the manufacture has a used scheme, for instance DasWelt Auto, those will need to meet certain standards and come with certain criteria. These will only be Volkswagen in this case. Most dealers will then have their own used car thing which they can sell non branded stuff. Warranties and bits like that will then be provided through the dealer, rather than the manufacture.
Volkswagen AG based in Germany create the products.
Volkswagen UK are a subsidiary company of VOlkswagen AG and are the UK imports for Volkswagen's.
The average person off the street cannot buy a vehicle directly from Volkswagen UK, dealers have to buy them, or in some cases, huge companies can buy them directly from Volkswagen UK.
Volkswagen UK then have lots of different Franchises. For instance, Listers, Inchcape, Sytner, JCT600 to name a few.
Those franchisee's just sell the products on behalf of Volkswagen AG, and buy the vehicles from Volkswagen UK (who originally import them from Volkswagen AG).
The franchisee's have "dealer standards" and yearly contracts which state what practices, facilities, coffee cups, etc. they need to do/use/vehicles they need to run.
In terms of used vehicles, if the manufacture has a used scheme, for instance DasWelt Auto, those will need to meet certain standards and come with certain criteria. These will only be Volkswagen in this case. Most dealers will then have their own used car thing which they can sell non branded stuff. Warranties and bits like that will then be provided through the dealer, rather than the manufacture.
Phil117 said:
In simple terms, this is how it works. I'll use Volkswagen as I work for them so know how it works.
Volkswagen AG based in Germany create the products.
Volkswagen UK are a subsidiary company of VOlkswagen AG and are the UK imports for Volkswagen's.
The average person off the street cannot buy a vehicle directly from Volkswagen UK, dealers have to buy them, or in some cases, huge companies can buy them directly from Volkswagen UK.
Volkswagen UK then have lots of different Franchises. For instance, Listers, Inchcape, Sytner, JCT600 to name a few.
Those franchisee's just sell the products on behalf of Volkswagen AG, and buy the vehicles from Volkswagen UK (who originally import them from Volkswagen AG).
The franchisee's have "dealer standards" and yearly contracts which state what practices, facilities, coffee cups, etc. they need to do/use/vehicles they need to run.
In terms of used vehicles, if the manufacture has a used scheme, for instance DasWelt Auto, those will need to meet certain standards and come with certain criteria. These will only be Volkswagen in this case. Most dealers will then have their own used car thing which they can sell non branded stuff. Warranties and bits like that will then be provided through the dealer, rather than the manufacture.
Any chance VW can just sell direct? - I'm one of those who'd prefer manufacturers to sell direct and get rid of the whole middleman process.Volkswagen AG based in Germany create the products.
Volkswagen UK are a subsidiary company of VOlkswagen AG and are the UK imports for Volkswagen's.
The average person off the street cannot buy a vehicle directly from Volkswagen UK, dealers have to buy them, or in some cases, huge companies can buy them directly from Volkswagen UK.
Volkswagen UK then have lots of different Franchises. For instance, Listers, Inchcape, Sytner, JCT600 to name a few.
Those franchisee's just sell the products on behalf of Volkswagen AG, and buy the vehicles from Volkswagen UK (who originally import them from Volkswagen AG).
The franchisee's have "dealer standards" and yearly contracts which state what practices, facilities, coffee cups, etc. they need to do/use/vehicles they need to run.
In terms of used vehicles, if the manufacture has a used scheme, for instance DasWelt Auto, those will need to meet certain standards and come with certain criteria. These will only be Volkswagen in this case. Most dealers will then have their own used car thing which they can sell non branded stuff. Warranties and bits like that will then be provided through the dealer, rather than the manufacture.
boxedin said:
Any chance VW can just sell direct? - I'm one of those who'd prefer manufacturers to sell direct and get rid of the whole middleman process.
Not a chance. It will vastly reduce profit margins.Volkswagen want dealers profit to be at 2%, whilst Volkswagen UK will make around 10-20%, and Volkswagen AG is at around 5-10%
You use a middleman with most of your products, Amazon, Tesco, Insurance, you name it, there's a middleman. Why have if different with cars?
Edited by Phil117 on Tuesday 18th March 21:47
boxedin said:
Phil117 said:
In simple terms, this is how it works. I'll use Volkswagen as I work for them so know how it works.
Volkswagen AG based in Germany create the products.
Volkswagen UK are a subsidiary company of VOlkswagen AG and are the UK imports for Volkswagen's.
The average person off the street cannot buy a vehicle directly from Volkswagen UK, dealers have to buy them, or in some cases, huge companies can buy them directly from Volkswagen UK.
Volkswagen UK then have lots of different Franchises. For instance, Listers, Inchcape, Sytner, JCT600 to name a few.
Those franchisee's just sell the products on behalf of Volkswagen AG, and buy the vehicles from Volkswagen UK (who originally import them from Volkswagen AG).
The franchisee's have "dealer standards" and yearly contracts which state what practices, facilities, coffee cups, etc. they need to do/use/vehicles they need to run.
In terms of used vehicles, if the manufacture has a used scheme, for instance DasWelt Auto, those will need to meet certain standards and come with certain criteria. These will only be Volkswagen in this case. Most dealers will then have their own used car thing which they can sell non branded stuff. Warranties and bits like that will then be provided through the dealer, rather than the manufacture.
Any chance VW can just sell direct? - I'm one of those who'd prefer manufacturers to sell direct and get rid of the whole middleman process.Volkswagen AG based in Germany create the products.
Volkswagen UK are a subsidiary company of VOlkswagen AG and are the UK imports for Volkswagen's.
The average person off the street cannot buy a vehicle directly from Volkswagen UK, dealers have to buy them, or in some cases, huge companies can buy them directly from Volkswagen UK.
Volkswagen UK then have lots of different Franchises. For instance, Listers, Inchcape, Sytner, JCT600 to name a few.
Those franchisee's just sell the products on behalf of Volkswagen AG, and buy the vehicles from Volkswagen UK (who originally import them from Volkswagen AG).
The franchisee's have "dealer standards" and yearly contracts which state what practices, facilities, coffee cups, etc. they need to do/use/vehicles they need to run.
In terms of used vehicles, if the manufacture has a used scheme, for instance DasWelt Auto, those will need to meet certain standards and come with certain criteria. These will only be Volkswagen in this case. Most dealers will then have their own used car thing which they can sell non branded stuff. Warranties and bits like that will then be provided through the dealer, rather than the manufacture.
Some manufacturers do have retail outlets they operate but you as a consumer would be hard pressed to knowany difference between that and a franchised dealer.
What difference do you think buying from a manufacturers retail garage or a franchised one would be? (the answer is zero BTW)
Rick101 said:
Interesting stuff. Cheers.
I'd guess all service staff will go on a manufacturer accrddited course. What about sales staff. Do they get training from the manufacurer or is is arranged in house? I'm refering to product knowledge rather than sales technique.
Again, in terms of Volkswagen...I'd guess all service staff will go on a manufacturer accrddited course. What about sales staff. Do they get training from the manufacurer or is is arranged in house? I'm refering to product knowledge rather than sales technique.
Volkswagen offer tons of product courses, ride and drive events, technology information etc.
However, some dealer groups won't want to send their staff on too many as it costs money both being out of the business, and paying for the training, although they have to go on a certain amount to meet dealer standards.
Technicians are a lot more in depth than sales. The master techs will be fully accredited from the manufacture.
boxedin said:
Phil117 said:
In simple terms, this is how it works. I'll use Volkswagen as I work for them so know how it works.
Volkswagen AG based in Germany create the products.
Volkswagen UK are a subsidiary company of VOlkswagen AG and are the UK imports for Volkswagen's.
The average person off the street cannot buy a vehicle directly from Volkswagen UK, dealers have to buy them, or in some cases, huge companies can buy them directly from Volkswagen UK.
Volkswagen UK then have lots of different Franchises. For instance, Listers, Inchcape, Sytner, JCT600 to name a few.
Those franchisee's just sell the products on behalf of Volkswagen AG, and buy the vehicles from Volkswagen UK (who originally import them from Volkswagen AG).
The franchisee's have "dealer standards" and yearly contracts which state what practices, facilities, coffee cups, etc. they need to do/use/vehicles they need to run.
In terms of used vehicles, if the manufacture has a used scheme, for instance DasWelt Auto, those will need to meet certain standards and come with certain criteria. These will only be Volkswagen in this case. Most dealers will then have their own used car thing which they can sell non branded stuff. Warranties and bits like that will then be provided through the dealer, rather than the manufacture.
Any chance VW can just sell direct? - I'm one of those who'd prefer manufacturers to sell direct and get rid of the whole middleman process.Volkswagen AG based in Germany create the products.
Volkswagen UK are a subsidiary company of VOlkswagen AG and are the UK imports for Volkswagen's.
The average person off the street cannot buy a vehicle directly from Volkswagen UK, dealers have to buy them, or in some cases, huge companies can buy them directly from Volkswagen UK.
Volkswagen UK then have lots of different Franchises. For instance, Listers, Inchcape, Sytner, JCT600 to name a few.
Those franchisee's just sell the products on behalf of Volkswagen AG, and buy the vehicles from Volkswagen UK (who originally import them from Volkswagen AG).
The franchisee's have "dealer standards" and yearly contracts which state what practices, facilities, coffee cups, etc. they need to do/use/vehicles they need to run.
In terms of used vehicles, if the manufacture has a used scheme, for instance DasWelt Auto, those will need to meet certain standards and come with certain criteria. These will only be Volkswagen in this case. Most dealers will then have their own used car thing which they can sell non branded stuff. Warranties and bits like that will then be provided through the dealer, rather than the manufacture.
What will pay for that?
archie456 said:
boxedin said:
Phil117 said:
In simple terms, this is how it works. I'll use Volkswagen as I work for them so know how it works.
Volkswagen AG based in Germany create the products.
Volkswagen UK are a subsidiary company of VOlkswagen AG and are the UK imports for Volkswagen's.
The average person off the street cannot buy a vehicle directly from Volkswagen UK, dealers have to buy them, or in some cases, huge companies can buy them directly from Volkswagen UK.
Volkswagen UK then have lots of different Franchises. For instance, Listers, Inchcape, Sytner, JCT600 to name a few.
Those franchisee's just sell the products on behalf of Volkswagen AG, and buy the vehicles from Volkswagen UK (who originally import them from Volkswagen AG).
The franchisee's have "dealer standards" and yearly contracts which state what practices, facilities, coffee cups, etc. they need to do/use/vehicles they need to run.
In terms of used vehicles, if the manufacture has a used scheme, for instance DasWelt Auto, those will need to meet certain standards and come with certain criteria. These will only be Volkswagen in this case. Most dealers will then have their own used car thing which they can sell non branded stuff. Warranties and bits like that will then be provided through the dealer, rather than the manufacture.
Any chance VW can just sell direct? - I'm one of those who'd prefer manufacturers to sell direct and get rid of the whole middleman process.Volkswagen AG based in Germany create the products.
Volkswagen UK are a subsidiary company of VOlkswagen AG and are the UK imports for Volkswagen's.
The average person off the street cannot buy a vehicle directly from Volkswagen UK, dealers have to buy them, or in some cases, huge companies can buy them directly from Volkswagen UK.
Volkswagen UK then have lots of different Franchises. For instance, Listers, Inchcape, Sytner, JCT600 to name a few.
Those franchisee's just sell the products on behalf of Volkswagen AG, and buy the vehicles from Volkswagen UK (who originally import them from Volkswagen AG).
The franchisee's have "dealer standards" and yearly contracts which state what practices, facilities, coffee cups, etc. they need to do/use/vehicles they need to run.
In terms of used vehicles, if the manufacture has a used scheme, for instance DasWelt Auto, those will need to meet certain standards and come with certain criteria. These will only be Volkswagen in this case. Most dealers will then have their own used car thing which they can sell non branded stuff. Warranties and bits like that will then be provided through the dealer, rather than the manufacture.
What will pay for that?
When I was in the business (a few years ago now) it worked like this:-
The shiny new cars in showrooms are usually not owned by the main dealer. Neither are the unpolished non-shiny ones being unloaded from the transporter and driven round the back.
This surprised me. I thought they would all be owned by the dealer because they are selling them, and if I buy one I pay the dealer.
But no, the cars are normally still owned by the manufacturer. When a sale as agreed, then the customer pays the dealer and the dealer pays (a lower amount) to the manufacturer the same day. That's how it used to work anyway, I doubt it's hugely different now.
This situation is good for both the dealers and manufacturers because they can move the cars around to where the customer is. (E.g. if a customer in "Fred's" wants a blue 2-litre, but Fred's has only red ones, then Fred's will search the UK stock and "Bill's" blue 2-litre can move to Fred's as a dealer transfer, no money need to change hands for that.)
Just occasionally the manufacturer may put pressure on the dealer to move their cars they are looking after, either by sending them back or buying them unregistered, or buying them and registering them. Typically this will be because a new model is on the way.
Just sometimes (rarely) the situation can go horribly wrong if a dealer is going broke. They could take the customer's money and not pay the manufacturer. The car then becomes a stolen car and could be grabbed back.
The shiny new cars in showrooms are usually not owned by the main dealer. Neither are the unpolished non-shiny ones being unloaded from the transporter and driven round the back.
This surprised me. I thought they would all be owned by the dealer because they are selling them, and if I buy one I pay the dealer.
But no, the cars are normally still owned by the manufacturer. When a sale as agreed, then the customer pays the dealer and the dealer pays (a lower amount) to the manufacturer the same day. That's how it used to work anyway, I doubt it's hugely different now.
This situation is good for both the dealers and manufacturers because they can move the cars around to where the customer is. (E.g. if a customer in "Fred's" wants a blue 2-litre, but Fred's has only red ones, then Fred's will search the UK stock and "Bill's" blue 2-litre can move to Fred's as a dealer transfer, no money need to change hands for that.)
Just occasionally the manufacturer may put pressure on the dealer to move their cars they are looking after, either by sending them back or buying them unregistered, or buying them and registering them. Typically this will be because a new model is on the way.
Just sometimes (rarely) the situation can go horribly wrong if a dealer is going broke. They could take the customer's money and not pay the manufacturer. The car then becomes a stolen car and could be grabbed back.
M4cruiser said:
if a customer in "Fred's" wants a blue 2-litre, but Fred's has only red ones, then Fred's will search the UK stock and "Bill's" blue 2-litre can move to Fred's as a dealer transfer, no money need to change hands for that
Are Fred and Bill the same company?Who pays for the transport costs?
Rick101 said:
Are Fred and Bill the same company?
Who pays for the transport costs?
Can be the same company, if so, makes it easier. Who pays for the transport costs?
If not, sometimes Bill will tell Fred he won't let it go as has got his own customer on it. However, if you offer me this car you have in return I may let it go.
Transport costs are usually incurred by the dealer who wants that vehicle.
boxedin said:
Phil117 said:
In simple terms, this is how it works. I'll use Volkswagen as I work for them so know how it works.
Volkswagen AG based in Germany create the products.
Volkswagen UK are a subsidiary company of VOlkswagen AG and are the UK imports for Volkswagen's.
The average person off the street cannot buy a vehicle directly from Volkswagen UK, dealers have to buy them, or in some cases, huge companies can buy them directly from Volkswagen UK.
Volkswagen UK then have lots of different Franchises. For instance, Listers, Inchcape, Sytner, JCT600 to name a few.
Those franchisee's just sell the products on behalf of Volkswagen AG, and buy the vehicles from Volkswagen UK (who originally import them from Volkswagen AG).
The franchisee's have "dealer standards" and yearly contracts which state what practices, facilities, coffee cups, etc. they need to do/use/vehicles they need to run.
In terms of used vehicles, if the manufacture has a used scheme, for instance DasWelt Auto, those will need to meet certain standards and come with certain criteria. These will only be Volkswagen in this case. Most dealers will then have their own used car thing which they can sell non branded stuff. Warranties and bits like that will then be provided through the dealer, rather than the manufacture.
Any chance VW can just sell direct? - I'm one of those who'd prefer manufacturers to sell direct and get rid of the whole middleman process.Volkswagen AG based in Germany create the products.
Volkswagen UK are a subsidiary company of VOlkswagen AG and are the UK imports for Volkswagen's.
The average person off the street cannot buy a vehicle directly from Volkswagen UK, dealers have to buy them, or in some cases, huge companies can buy them directly from Volkswagen UK.
Volkswagen UK then have lots of different Franchises. For instance, Listers, Inchcape, Sytner, JCT600 to name a few.
Those franchisee's just sell the products on behalf of Volkswagen AG, and buy the vehicles from Volkswagen UK (who originally import them from Volkswagen AG).
The franchisee's have "dealer standards" and yearly contracts which state what practices, facilities, coffee cups, etc. they need to do/use/vehicles they need to run.
In terms of used vehicles, if the manufacture has a used scheme, for instance DasWelt Auto, those will need to meet certain standards and come with certain criteria. These will only be Volkswagen in this case. Most dealers will then have their own used car thing which they can sell non branded stuff. Warranties and bits like that will then be provided through the dealer, rather than the manufacture.
Other thing is ,(strange as it may seem) dealers are not agents of the manufacturers.
I think that also dealers have allocations of certain cars -i know Ford do with their ST/RS range -i'm sure others would have aswell
Some dealers have to invest further for training/equipment -VW iirc required 500k investment for dealers to sell Phaeton
In the old old days Ferrari dealers were either V8 or V12 !
I think that dealers also have take slow selling /unpopular models as part of stock/demos?
I'm not sure though how dealers lose a franchise -whether it is poor customer service, poor sales, or the dealer takes decision to quit ?
Thing is if it is poor customer service, poor sales -the dealer still gets to franchise another car make
Also how do they select dealers for Motor Shows?
tali1 said:
Yes- you need to go to Bristol Cars!
Other thing is ,(strange as it may seem) dealers are not agents of the manufacturers.
I think that also dealers have allocations of certain cars -i know Ford do with their ST/RS range -i'm sure others would have aswell
Some dealers have to invest further for training/equipment -VW iirc required 500k investment for dealers to sell Phaeton
In the old old days Ferrari dealers were either V8 or V12 !
I think that dealers also have take slow selling /unpopular models as part of stock/demos?
I'm not sure though how dealers lose a franchise -whether it is poor customer service, poor sales, or the dealer takes decision to quit ?
Thing is if it is poor customer service, poor sales -the dealer still gets to franchise another car make
Also how do they select dealers for Motor Shows?
Yeah, we have to register demo's for everything. Most Audi sites loose £6k on every A8 they have to register.Other thing is ,(strange as it may seem) dealers are not agents of the manufacturers.
I think that also dealers have allocations of certain cars -i know Ford do with their ST/RS range -i'm sure others would have aswell
Some dealers have to invest further for training/equipment -VW iirc required 500k investment for dealers to sell Phaeton
In the old old days Ferrari dealers were either V8 or V12 !
I think that dealers also have take slow selling /unpopular models as part of stock/demos?
I'm not sure though how dealers lose a franchise -whether it is poor customer service, poor sales, or the dealer takes decision to quit ?
Thing is if it is poor customer service, poor sales -the dealer still gets to franchise another car make
Also how do they select dealers for Motor Shows?
Only get so much quota. For instance, if someone orders a Golf with a site which has sold their allocation, they will have to wait so many months before the factory agree to build it, then you've got the lead time on top of that.
It's a mixture when a Franchise looses a site. It may come up for tender and one group has a better proposal than the other. They may have breached their dealer standards and the manufacture don't want them. Or they've been bought by another group and said group doesn't want that site.
Motor shows will either be represented directly from the manufacture, or said dealer has paid to be there themselves.
Phil117 said:
tali1 said:
Yes- you need to go to Bristol Cars!
Other thing is ,(strange as it may seem) dealers are not agents of the manufacturers.
I think that also dealers have allocations of certain cars -i know Ford do with their ST/RS range -i'm sure others would have aswell
Some dealers have to invest further for training/equipment -VW iirc required 500k investment for dealers to sell Phaeton
In the old old days Ferrari dealers were either V8 or V12 !
I think that dealers also have take slow selling /unpopular models as part of stock/demos?
I'm not sure though how dealers lose a franchise -whether it is poor customer service, poor sales, or the dealer takes decision to quit ?
Thing is if it is poor customer service, poor sales -the dealer still gets to franchise another car make
Also how do they select dealers for Motor Shows?
Yeah, we have to register demo's for everything. Most Audi sites loose £6k on every A8 they have to register.Other thing is ,(strange as it may seem) dealers are not agents of the manufacturers.
I think that also dealers have allocations of certain cars -i know Ford do with their ST/RS range -i'm sure others would have aswell
Some dealers have to invest further for training/equipment -VW iirc required 500k investment for dealers to sell Phaeton
In the old old days Ferrari dealers were either V8 or V12 !
I think that dealers also have take slow selling /unpopular models as part of stock/demos?
I'm not sure though how dealers lose a franchise -whether it is poor customer service, poor sales, or the dealer takes decision to quit ?
Thing is if it is poor customer service, poor sales -the dealer still gets to franchise another car make
Also how do they select dealers for Motor Shows?
Only get so much quota. For instance, if someone orders a Golf with a site which has sold their allocation, they will have to wait so many months before the factory agree to build it, then you've got the lead time on top of that.
It's a mixture when a Franchise looses a site. It may come up for tender and one group has a better proposal than the other. They may have breached their dealer standards and the manufacture don't want them. Or they've been bought by another group and said group doesn't want that site.
Motor shows will either be represented directly from the manufacture, or said dealer has paid to be there themselves.
I guess a large number of Phaeton w12 first owners were Senior Management at VW dealers ?
boxedin said:
Any chance VW can just sell direct? - I'm one of those who'd prefer manufacturers to sell direct and get rid of the whole middleman process.
I had experience for a couple of years with a prestige German brand that owns some of the dealerships - without a doubt the worst run dealerships in the entire network.Staff were incredibly arrogant - more than once I heard "We are owned by XXXXX so the staff here are the best around" - all results re; sales, profit, CSI, retention indicated otherwise
The problem is that the wholesaler (manufacturer / NMSC) thinks they are experts at retailing and the retailer think they are expert at wholesaling - in my 20+ years in the industry the manufacturer should listen to the retailers far more than they actually do. Stop worrying about whether the bin in reception is to dealer standards and concentrate on providing good service
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