Mercedes Benz UK CEO Gary Savage claims that customers prefer the haggle-free approach the company has adopted in selling cars, but opinions from readers of Car Dealer Magazine are divided. Savage states that the agency model was implemented in response to dealers' requests to enhance profitability. He asserts that the customer feedback thus far has been overwhelmingly positive. However, market analysis reveals a decline in the brand's market share, with critics suggesting that much of its sales volume has been driven by forced sales to fleet and short-term rental channels.

A retired car dealer shares their perspective, stating that they would have stayed in the industry longer if the agency model had been introduced earlier. They believe that most customers and sales executives dislike the haggling process. They question the need for sales staff with proper selling skills in a fixed-price agency model, predicting a shift towards lower-paid order takers and increased staff turnover.

The retiree also acknowledges that dealers and manufacturers have the right to make a profit, reflecting on a time when discounts were considered taboo in the industry. They express curiosity about the future of the agency model, expecting further changes as old ideas are recycled and new managers seek to make their mark.

A customer voices their dissatisfaction with the new approach, recounting their positive experiences with knowledgeable salespeople and showrooms when purchasing Mercedes cars in the past. They express concern about salespeople leaving or seeking other opportunities due to being reduced to "order takers." The customer is also disappointed by the unavailability of a showroom vehicle for sale and the prospect of ordering one at a fixed price with an uncertain delivery date. They consider this new method a deal breaker and believe that Mercedes should spend more time understanding the needs of real customers.

Shaun McCarthy, who works in the recruitment business, shares his observations that Mercedes dealers are losing their best salespeople, who are unhappy with the role of "order takers." He highlights the detrimental effect this has on long-term buyer relationships and suggests that the CEO's emphasis on profitability at the expense of market share is a way to justify poor sales.

A leasing broker with multiple Mercedes dealer relationships expresses skepticism about Savage's claims, stating that dealers are actively seeking alternative sources of income and negotiating with manufacturers that still adhere to traditional supply relationships. Despite finding the article amusing, the broker implies that there may be discrepancies between the CEO's statements and the reality on the ground.

In conclusion, while Mercedes Benz UK CEO Gary Savage asserts that customers are embracing the agency model, feedback from retired car dealers, customers, and industry professionals reveals differing opinions. Critics raise concerns about the impact on sales staff, customer relationships, and market share, suggesting that the current approach may not be universally successful.

This article was originally published on Car Dealer Magazine's website.