Advertisement

“Many customers don’t like dealing face to face with salesmen on commission”

Mike Rutherford thinks that familiar, male-dominated car showrooms are not conducive to a warm shopping experience for families

For good reason, I’m passionate about The High Street. When my grandfather emigrated from Italy to England in the 1930s, he raised enough dough (no pun intended) to establish his bakery-cum-modest deli in Greenwich. He married the lady who owned the corner shop next door. For him at least, it was the ultimate convenience store! Sorry, Grandma.

Advertisement - Article continues below

Later, other family members built different businesses in and around shopping streets. Happily, most seemed to sell up and get out at the right time; that’s a skill some of today’s retailers struggle with. Even before Lockdown 2020, it was near impossible for many High Street restaurant owners, pub landlords, shopkeepers and the like to remain solvent. Now the big, valid question is, will they ever reopen?

But I’ve heard nothing about the possible collapse of another huge and important bunch: traditional franchised car dealers. Many were already struggling and seemingly missed out on the high street/online revolution. They’re not paying enough attention to the growing demands of modern consumers. They still don’t get that the familiar, male-dominated car showroom isn’t conducive to a warm shopping experience for mum, dad and kids. In short and in general, sleepy traders have been left behind by the impressive pace of the makers they represent.

Advertisement - Article continues below
Advertisement
Advertisement - Article continues below

New/used car dealers are horribly expensive to run. Inside or on the edges of cities and towns, the land, buildings, utility and countless other costs are scary. Average annual salaries for managing directors are in the £200,000-£250,000 bracket. Dealer principals typically earn about £100,000. Remuneration packages (excluding management positions) average £40,000. Ultimately, all those real-estate costs and wages, plus business rates, taxes and other hefty bills, are paid for by consumers buying new cars, finance, servicing, parts, et al.

These are the sort of punters who used to pay for their domestic fuels and appliances at gas and electric showrooms in shopping centres; the same people who queued to get movies from Blockbuster stores (RIP). Importantly, they all still buy cookers and heaters, gas, leccy and movies, just not from the archaic high street shops they used to.

Some in the know insist that traditional car dealers will be “extinct” within five years. I disagree. But they must wake up and properly engage with the retailing (and lifestyle) revolutions that are in danger of leaving them behind.

They have to accept that many customers don’t like visiting trade showrooms, before dealing with salesblokes on commission. Those tired, uninviting, barn-like environments have gotta go. It’s time to move out of prohibitively expensive, unfit-for-purpose towns and cities run by iffy councils. Better land with friendlier local politicians awaits.

Also, let’s have far more cars lovingly delivered to the doors or driveways of customers. Or, after buyers remotely sort out paperwork and payments in advance, give them the option to pick up their vehicles from tall, skinny, space-saving, salesman-free, state-of-the-art vending machines. And before you ask, yes, I am perfectly serious.

Do you agree with Mike? Let us know your thoughts below…

Advertisement
Advertisement

Recommended

Coronavirus: what does it mean for cars and motorists?
News

Coronavirus: what does it mean for cars and motorists?

The global Covid-19 pandemic has had a major impact on life in the UK. Here’s everything you need to know about how it affects cars, motorists and the…
27 May 2020
Vauxhall plans for re-opening of Ellesmere Port plant could be delayed
Vauxhall

Vauxhall plans for re-opening of Ellesmere Port plant could be delayed

Preparations are being made to re-open Vauxhall’s Ellesmere Port factory following coronavirus shutdown but a delay beyond September is likely
8 Jul 2020
New car sales reach 145,000 in June as dealers reopen
News

New car sales reach 145,000 in June as dealers reopen

New car registrations were down 34.9 per cent year-on-year in June 2020, with showrooms having reopened to customers
6 Jul 2020
Geneva Motor Show 2021 cancelled
News

Geneva Motor Show 2021 cancelled

The 2021 Geneva Motor Show has been cancelled due to financial hardship and poor manufacturer response
30 Jun 2020

Most Popular

New Cupra el-Born electric hot hatch offers 310-mile range
Cupra el-Born

New Cupra el-Born electric hot hatch offers 310-mile range

The sporty Cupra el-Born is the Spanish brand’s first all-electric vehicle – and it has a maximum claimed range of 310 miles
8 Jul 2020
New Skoda Octavia vRS 2020 ride review
Skoda Octavia vRS Hatchback

New Skoda Octavia vRS 2020 ride review

We get our first taste of 242bhp Skoda Octavia vRS with Skoda tech development boss Christian Strube in the driver’s seat
10 Jul 2020
New Kia e-Niro 2020 review
Kia e-Niro SUV

New Kia e-Niro 2020 review

All-electric Kia e-Niro mid-sized SUV 
benefits from same updates as hybrid Niro versions
9 Jul 2020