Alf Barnet
Active Member
- Joined
- Jul 25, 2015
- Messages
- 212
- Car
- S212
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Why wouldn't they pull out?
People buy new cars via brokers on some kind of finance/lease.
The money is in the finance.
Look at other consumer finance industries, 70%+ of new business is via the broker market.
Consumers are whining *******s so the answer is to outsource the process so someone else takes the blame.
Makes sense at some levels.
For once I have to say lewyboy talks sense.
Manufacturers often do no make good money from distribution. Partly due to a conflict of interest and partly because they are often not hungry enough. As distribution is not their core business, they often waste money on the wrong things and also pay their staff rather better than their meaner competitors (who distribute their products and often rely on upselling 3rd party products to make up for lesser pay and margins) which eats into their margins.
So unless for flag ship stores, the business model for distributing one's own product often doesn't work out so well in reality.
Manufacturers often do no make good money from distribution. Partly due to a conflict of interest and partly because they are often not hungry enough.
Going back a few years, I got my car from what was then called MB Direct, Birmingham (Bromford Lane).
After visiting a couple of local dealers I have to say it was a revalation to deal with someone who actually seemed to want to sell me a car.
I bought a car from MB Direct in Birmingham, Balsall Common, and they were very keen to do business.
Sadly within a few years their pricing went a bit wonky so that buying from a glas palace became cheaper.
Dealerships are only as good as the salesman you're dealing with. Just like Banks are only as good as your Bank Manager.
I bank with RBS (business). My bank manager has been "poached" by another bank. I'm moving banks. No loans or anything else, I just like dealing with him.
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