Used car retail has long been an area of the market for retailers to show their entrepreneurial flair. But the focus on this area of the business could be even more important in the coming years.
There are multiple pressure points on new car retail which mean the used market provides relative stability by comparison.
New car sales contracts may move towards a mooted agency structure as manufacturers are increasingly looking to sell direct to consumers online (both Mercedes-Benz and Groupe PSA have announced that 25% of global sales will be online by 2025) and network rationalisations mean the new car pie will continue to shrink.
The introduction of the agency model would see dealers focus on the customer interaction – handovers, servicing and used vehicle sales; while the original equipment manufacturer (OEM) would take more control of the new car sales process, the customer data…