A NEW survey suggests mounting resistance to the manufacturer agency model within the automotive industry. According to Startline Motor Finance’s Used Car Tracker, 72% of dealers believe a trend is developing against the agency model.
The survey further reveals that 36% of dealers anticipate more manufacturers abandoning agency plans. Additionally, 23% believe the model is failing dealers, while 21% see it as counterproductive for manufacturers themselves.
“The agency model's adoption has sparked significant debate, and recent shifts by some manufacturers are amplifying the controversy. Dealers seem to sense a reversal in the trend. It's increasingly clear that the agency model holds drawbacks for both dealers and manufacturers, potentially leading some to reconsider.”
Interestingly, 20% of dealers foresee a hybrid future – a mix of agency models and traditional franchise agreements.
“A hybrid approach seems the most plausible scenario,” Burgess added. “The car market has room for diverse models, each with its pros and cons. The right model will depend on the specific needs of manufacturers and dealers.”
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Automotive and fleet writer for Broker News
