The benefits of an agency-style model, where the new car journey is managed online and manufacturers pay a handling fee to retailers, largely outweighs the disadvantages, according to senior executives at dealer groups already experiencing mixed commissions at work in their businesses.
Daksh Gupta, CEO of Marshall Motor Holdings, is well-known as one of its exponents. He says: “It’s nothing new, it’s been around for 20 years. Around half (the group) do agency in some shape or form.”
Marshall Motor Holdings Plc (LON:MMH), together with its subsidiaries, engages in retailing passenger cars and commercial vehicles in the United Kingdom. It sells new and used vehicles; and provides after sales services, such as servicing, body shop repairs, and parts sales.