For whose benefit?
It seems that most of the benefits to stem from the agency model that sets a template for future new car sales (Business, 23 March) flow in the direction of the manufacturer.
By limiting the role of dealers and removing their ability to offer discounts, while at the same time restricting the customer’s ability to negotiate, is less about transparency and more about exerting greater control over the market and maintaining consistent pricing.
While it’s true that heavy discounts undermine residual values, I believe the end result of this change will be a net loss to the customer and higher profits for manufacturers. Mike Wells
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