The new agency model of car manufacturers: Centralization of pricing and control of discounts
“The haggling over discounts when buying a car is a practiced ritual. The dealers have so far sold the vehicles on their own account and were therefore able to determine the final price. The car manufacturers want to put an end to this. They want to pull the trade much more towards themselves in the future and thus also determine the rules of the business – including the prices. The decisive legal vehicle for this is the so-called “agency model”. The actually independent car dealers then become the agents, i.e. simple sales representatives, who are only allowed to sell cars in the name of the manufacturers. The most important thing: The sovereignty over the prices is completely transferred to the car groups.”
– Stefan Menzel in “End of the discount battle in car sales – The dealer has so far determined the final price for a new car. The car manufacturers want to change this – and are introducing a new system.”, Handelsblatt, January 4, 2022, No. 3
