Over the last 12 months or so there’s been a lot of discussion about car retailers switching from the traditional “wholesale” model to the new “agency” pricing and supply model. Retailers would move from a position of buying and stocking new cars from manufacturers to one where they take what is in effect, a handling fee when they sell a car. There have been some high profile pilot schemes in other markets (such as BMW in South Africa) and they appear to have worked well for all parties – including the consumer of course!

There’s a lot to like for both retailers and manufacturers and in a level playing field situation it’s easy to make a case for moving to this model, however, the situation is likely to be more nuanced. Autocar Magazine explores the issue in more depth here

Well worth a read…