PAGE: “We see that, yes. If I come back to Care by Volvo, we get 90% Conquest sales. Only a small percentage goes to the dealer for a test drive. Instead, they go to the dealer to pick up the car. So you enter a car dealership and still feel comfortable enough to subscribe to this car without a test drive. But it can also depend on the brand; I think Volvo is a pretty trustworthy brand. “
DG: “I think it will vary based on customer engagement.”
Do huge dealer showrooms still have a future?
DG: “I think you will get some consolidation. There are [around] 40 manufacturers [selling cars] In the United Kingdom. As an operator, that’s not sustainable. I think we will see consolidation at the manufacturer level. We saw that recently when PSA took over Opel [and Vauxhall] and then merged with FCA [to form Stellantis].
“The number of sales outlets is also being streamlined. Volvo is a great example. There are around 96 or 97 Volvo dealerships in the UK. If you look at some of the other premium brands like Mercedes or Audi, they work with around 110 or 120 dealers in Great Britain. But if you look at some of the other brands, especially some of the high volume manufacturers, they are twice the network size, although market shares are likely smaller than some of these premium brands. So you will see a natural reduction in the number of retailers. However, as the number of retailers is streamlined, throughput per location will increase. So you will need these larger websites. “
Are online platforms like Cazoo and Cinch pioneering an easier, digital way of selling cars?
MW: “From a consumer perspective, I can see that some of these disruptors may add real value because they are trying to turn some of those friction points on their heads when buying a car. But from a retail perspective, I think it’s about understanding each platform individually and understanding what it brings.
“Could you be a partner? [for Keyloop]? For example, if you work with a company like this, you would expect that they can bring you leads from potentially broader prospects than you have had in the past. So I don’t think you can have one size fits all online platforms. They all have to be taken individually and viewed for what they bring or possibly take with them. ”
