Agents of change: how car buying is evolving

“If you look at the history of car buying, there has always been a surge in used car prices. Prices go up until they are the same as new, then people start buying new cars with incentive finance and used car prices go down. The big change for me will be the increase in the number of leasing companies selling their cars at fixed prices without any purchase fees directly to buyers like us, who buy 2000 cars at a time. This means that fewer cars will be bought at auction. These leasing companies are disrupting the market.

“Our online Carzam business has exceeded our expectations, but buyers will still love to touch and try a car before they buy. This is why our used car supermarket sites are having a fantastic year, and by the end of 2022 we will have 10. ”

Robert Forrester: CEO, Vertu Motors

“Our financial results show what happens when there is no oversupply in a market. I have always said that manufacturers should produce one less car than the market demands. That said, it is still tempting for an automaker with high fixed production costs to make just one more car, and with the removal of tariffs on Korean and Japanese cars, we could see a return of excess supply.

“When it comes to used cars, dealers will be more open to stocking older cars. Our average preparation cost has dropped from £ 450 to £ 650 which shows you just how deep we are. For younger used cars, we will face competition from retailers such as Cazoo. But if, thanks to the sales agency model, fewer quality used cars leave the network, we will not suffer.

“When it comes to the threat of online retailers, we have a customer conversion rate in our showrooms of 30% while a fully online online retailer only has 0, 8%. We have an offer online, but four of our five customers want to take a test drive, and you can’t do it online.

Daksh Gupta: Group CEO, Marshall Motor Holdings

“For a lot of people, buying a car and negotiating the price is an uncomfortable process. The sales agency model will provide a level of transparency, as everyone will get the same deal. Dealers may offer different parts exchange ratings, but not many, as customers will check prices and verify they are getting a good deal.

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