According to Neil Smith, who has worked for Imperial Car Supermarkets and Cazoo, the launch of online car retailers Cazoo and Cinch has had a significant impact on the traditional car retail industry. Speaking on the Car Dealer Podcast, Smith explained that if these digital start-ups hadn't entered the market, traditional retailers wouldn't have realized the potential for successful online car sales. Cazoo acquired Imperial in 2020, and Smith played a crucial role in converting the Imperial dealerships into Cazoo handover centres, although many of them have now closed due to recent company cuts.

Smith believes that the used car industry should not underestimate the influence of Cazoo and Cinch. He acknowledges the impressive achievement of both companies, starting from scratch less than four years ago and quickly scaling up to sell 60,000 used vehicles per year. Smith points out that their disruptive model, which they presented to investors, paved the way for change in the market. He finds it amusing when he hears comments from major dealer groups claiming to be "disrupting the disruptors." Without the pioneering efforts of Cazoo and Cinch, the industry would not have considered the possibility of fully online vehicle sales, including the potential risk of returns due to customer dissatisfaction.

Smith was also asked about Cazoo's decision not to utilize the physical sites it acquired from Imperial as used car showrooms. Although he suggested this option, it did not align with Cazoo's disruptor model. Despite discussions about an omni-channel approach, it became clear that the company would not introduce a physical showroom model at that time.

When questioned about Cazoo's future, Smith expressed confidence that hiring traditional used car experts like Jonathan Dunkely, former Carshop CEO, would greatly benefit the company. Smith acknowledged that mistakes were made but pointed out that no one could have predicted the sudden lack of confidence in businesses like Cazoo and Carvana. He also criticized Cazoo's initial PR messaging, which targeted the incumbents in the car industry and belittled their outdated models in interviews. Smith believes this approach didn't help Cazoo's perception among the rest of the automotive dealer network.

Overall, Smith reflects positively on his experience working at both Imperial and Cazoo. To listen to the full episode of the Car Dealer Podcast featuring Neil Smith, it is available on Spotify, Apple Podcasts, and other podcast platforms.

This article was originally published on cardealermagazine.co.uk.