Times are Changing for Car Dealers...

Tesla store at Bluewater shopping centre, Kent

Happy New Year!!!
Whilst I was walking home from a bash in the early hours of New Year's Day, I began thinking how time seems to race along ever more quickly from one year to the next. It's frightening that this year will mark 15 years since I passed my driving test. I clearly remember the utter excitement of picking up my first car, a Peugeot 106 1.1 Independence from what was Clifford's Peugeot, just outside Gravesend.
The dealer was a small branch, an offshoot of a larger dealer based in Dartford; now part of the WJ King Group. I remember the layout; a small showroom with a few cars placed pretty much on top of each other, the odd sales exec's desk and the suspiciously plastic looking yucca plant catching dust in the corner. The service dept and workshop were in a separate building at the other end of a rather tight car park; a rather run-down affair with the de rigueur coffee machine and faded blue seating.
This is a far cry from the traditional mainstream car dealership today. Most are far more upmarket and welcoming places to spend time in; clean, smart, spacious and modern. A lot of the mainstream brands such as Vauxhall, Peugeot and Ford have clearly taken a leaf out of the corporate dealer look from marques such as BMW and Mercedes. Showroom cars are placed apart from each other creating a sense of space whilst a lounge area means customers can sit and relax. Crumpled brochures are now replaced by tablets where customers can freely spec their cars. I seem to remember Volkswagen being at the forefront of this new corporate look where regardless of the franchise, each site would have the same high-end design and layout.
The question now though is, are traditional car dealers heading towards extinction?
Think about it... For a start most aren't very accessible being based in out-of-town industrial estates. Potential purchasers will often make planned visits to their local branch after researching online whereas the average passer-by won't always have a clear view of the showroom products, let alone regularly stop and visit areas where such dealers are located.

Mini's latest eye-catching corporate dealer design. Inside, expect a youthful, funky image featuring televisions, tablets and a bar

This has led to some car manufacturer's setting up dealers in places like shopping malls and city high streets where more people will see what's on offer and footfall will be greater. Hyundai's Rockar network is expanding at places like the Bluewater shopping centre in Kent whilst Tesla is also present in many large and well-to-do retail centres. Product specialist staff are on hand to discuss the cars in detail whilst touchscreens guide customers through the range. Even newly formed DS has opened their Urban Store at Westfield Shepherds Bush offering a boutique-like experience. Although franchises have occasionally set up temporary stands within shopping malls, these purpose built sites are targeting the Apple Store generation.
This brings me onto space. With manufacturer's ranges increasing into niches that nobody had ever thought of 10 years ago, (I'm looking at you Audi/BMW), how can an urban store with limited room inform visitors of a full model portfolio? Luckily, virtual reality headsets are coming on stream that allow customers to experience the cars as if they were physically there. Audi City London is an example where technology is bringing customers face-to-face with the cars in ever greater detail, despite space limitations.
And what about the business of buying your new car?
I predict dealerships will need to become ever more competitive in the services they provide thanks to the popularity of online car sales. Although manufacturers themselves are beginning to offer such services via their websites, (Hyundai, Smart and soon Peugeot are just some examples), car brokers and new car discount companies have been muscling in for years.

Some larger dealers even feature historic cars in their showrooms; this BMW Isetta adds a bit of heritage to the mix. (Would rather a 2002 Turbo though...)

Thanks to less overheads and agreements with dealer franchise groups, sites such as New Car Discount, Broadspeed, Carwow and What Car? allow customers to choose and spec their cars in the comfort of their own home whilst getting discounts that would be very difficult to get if they were sitting in front of a sales exec at their local dealership. Not only can you choose everything from colour, trim level, engine, transmission and optional extras as if you were in a showroom, you still have the option of buying on finance, leasing or paying outright.
The discounts compared to the manufacturer's list price is the bit I get excited about though...and you don't even need to haggle. Indeed I took the plunge with my current car back in 2014 saving thousands. What's more, the process was so simple and efficient.
Don't think that the best deals are only on run-out special editions either. Great savings can be had on new-to-market models; whether they're from mainstream or premium brands.
Take the new Peugeot 3008 SUV on New Car Discount as an example. A car that's only just arriving in showrooms this month and garnering positive reviews from the motoring press can already be had with up to 22% off list price for a 1.2 GT Line. That's a saving of £5,842. Or how about over £16k off a BMW 650i Coupe? Try getting that at your local dealer...and no haggling necessary!
Times are changing for the traditional car dealership as they are for the car industry itself. Whether it's how you buy your new set of wheels to the dawn of the autonomous car, I expect things are set to progress quickly. Indeed, just like the passing of time...