Are traditional car dealers dying? Not yet! The best will evolve and be more valued than ever
Editor Paul Barker explains why, no matter how much the industry changes, reports of the death of the traditional dealer are much exaggerated
It’s really easy to give car dealers a hard time. Whether it’s haggling over prices, sloppy service or the occasional poor treatment of women, their reputation has been earned over the years by some less impressive members of the community.
But good dealers still have a lot to offer, and can turn the car-buying process into a really quite enjoyable one. I recently spent some time with Michael Lohscheller, chief executive of Polestar, which has decided to expand its dealer network in the UK.
Initially a brand that launched via showrooms in shopping centres, Polestar is now expanding its traditional dealer presence with 18-20 “high-performing” outlets across the country, alongside those of sister brand Volvo.
“You visit your local dealer, you trust him or her, you test drive the car, you get offers and you come back the next weekend and purchase,” Lohscheller told me. “We believe this is a key to success; I call it the renaissance of the dealer.”
Much of the reason for the shift is that Polestar is starting to take back increasing numbers of cars that have spent three or four years with their first owner. Boutiques and shopping centre sites aren’t great for selling or test driving used cars when an out-of-town dealership has space to display the vehicles, and access to better test routes.
However, selling new cars is going the other way, too. Last year, Renault opened its showroom at Battersea Power Station in London, with space for three or four cars, plus loads of merchandise – an Renault 5 hoodie almost tempted me at the launch event.
But aside from selling clothing, models and notepads, that venue is about passing trade – people coming out of the tube station, seeing a brightly coloured Renault 4 or 5, and registering it as an option when they’re back at home on their sofa plotting a new car. Although Renault can and will sell cars from Battersea, as much as anything, it’s a branding mission to push people into its more suburban dealers.
How we buy cars is evolving, with clever brands finding clever ways to go left and right. As well as the traditional salesperson in a showroom, more people are becoming more comfortable with buying online (via the likes of our own Buy a Car service) and circumnavigating the dealer completely.
But that means the dealer is evolving to survive. Dealers – good ones that add value anyway – are set to be an important part of the car-buying process for some time yet.
Don't miss out! See more of Auto Express in your Google Top Stories. Click here...
