- This topic has 18 replies, 7 voices, and was last updated 1 week, 6 days ago by
.
- Topic
It seems from 2025 Mini BMW has entered agency model which is why the old offers like I had £500 cashback are no longer and that paying buyers can no longer haggle price they are now fixed. Dealer I went two in fact tried to explain they apologised they can no longer offer this and it is BMW Mini will not let them as they now have to buy cars direct themselves. Also car dealer magazine many anonymous dealers say this is costing them now lost sales not good is it.
- Replies
From car dealer mag
Agency sales have structurally changed the shape of Britain’s franchised car dealers, wiping huge sums from reported turnover, new-car stock from balance sheets and changing margins – but has it actually made them better businesses?
Three years after Mercedes-Benz and Volvo became two of the first major brands to switch to this model, Car Dealer has examined the most recent filed accounts of companies across their dealer networks, along with newer additions Mini and Honda, to find out what they had to say.
Early accounts were dominated by wariness about commission levels, volumes and whether manufacturers were taking too much control away from dealers, then came the enormous accounting changes as the first businesses stopped recognising the full price of agency cars as turnover.
Now, some of the most recent accounts are talking about improved agency margins, steadier profitability and the benefits of taking stock and funding risk away from the dealer.
Listers, in its latest accounts to March 2026, said the move from franchise to agency was the ‘most significant factor’ behind turnover falling 2.9% to £1.31bn, but also said improvements in agency-sales margins had helped strengthen overall gross margin from 14.7% to 15.1%.
Gross profit actually edged up from £197.1m to £197.4m, although pre-tax profit fell from £14.9m to £12.7m and vehicle volumes were down 1.9% across the wider multi-brand group.
At Riverside Motor Group, the effect was enormous. Its 2024 accounts estimated more than £214m of additional turnover would have been recognised had the 5,056 Volvo cars it handled under agency been treated as conventional vehicle sales, yet group pre-tax profit still rose by a third to a record £8.06m.
Riverside Motor Group reports record profits despite Volvo’s agency model slashing turnover
Reliance Garage, the company behind Ray Chapman Motors, shows just how dramatically the shape of the accounts can change. Revenue from the sale of goods fell from £175.6m to £102.3m, while agency commission income jumped from £1.3m to £8.1m.Vertu Motors’ full-year results to February 2026 give us perhaps the clearest picture yet of what that looks like at scale, with the listed dealer group said Mini and Honda agency reduced reported new-car turnover by around £70m during the year but it handled 4,068 agency new-retail cars, up 42.9% from 2,846 a year earlier.
However, it added that agency reduced the revenue against which gross profit was measured, mechanically improving the reported percentage margin. Strip out that accounting effect and Vertu said its new-vehicle margin would actually have fallen by 0.4 percentage points year on year, while core new-car gross profit was £8.7m lower.
That same warning appears even more explicitly in the latest accounts of Holdcroft Honda, which said the improvement in its reported margin was ‘largely a mathematical result of the Honda DTC model, where turnover is reduced to a handling fee’.
Lower income, but less cost and risk
Vines Motor Group’s latest accounts put the turnover reduction from Mini agency at around £14.5m, saying the business would otherwise have recorded top-line growth.I hate these new agency models, and so do the staff who have to put up with it. It’s increased the “I’ll need to ask my manager” to a level where you’re starting to get pretty fed up with them leaving the conversation for ages just to ask if you can have floormats and a service plan.
However, unlike Volvo and Mercedes, BMW and MINI dealers can still reduce the price of their new vehicles independently from the RRP, so you can still save extra on a new car between different dealers just like the old system.
Perhaps I didn’t understand the topic, but what’s the issue?
I am looking now for a vehicle outside the scheme. Some VW dealers (agencies?) like Marshall, offer nothing and others bought stocks to get a bonus I presume and now sell them as pre reg for a very tempting price.
Sent from a mobile device.
Apologies for briefness and spelling mistakes.Motability Skoda Enyaq SportLine 85x April 2024 (unhappy customer, but won my case with Ombudsman)
Motability Mazda CX-60 PHEV July 2023 (unhappy customer - early termination on mechanical grounds)
Motability VW Touran Family Pack May 2019 (happy customer)I hate these new agency models, and so do the staff who have to put up with it. It’s increased the “I’ll need to ask my manager” to a level where you’re starting to get pretty fed up with them leaving the conversation for ages just to ask if you can have floormats and a service plan. However, unlike Volvo and Mercedes, BMW and MINI dealers can still reduce the price of their new vehicles independently from the RRP, so you can still save extra on a new car between different dealers just like the old system.
I was going to say the same thing. Discounts are still available but some dealers will hide behind this to imply that they are not. If a dealer says they can’t negotiate, go to one that will!
Perhaps I didn’t understand the topic, but what’s the issue? I am looking now for a vehicle outside the scheme. Some VW dealers (agencies?) like Marshall, offer nothing and others bought stocks to get a bonus I presume and now sell them as pre reg for a very tempting price.
I have spoken to two seperate Mini dealers and they told me no way can they give any cash back anymore as I am due to change in nov 2026 so testing the water and even a large ford dealer in herts told me we do not give any discounts on motability AP go to motability and ask them to which I said that will not work.So hitting my head against a brick wall.
Just been to the original £500 off all Mini which was a topic on here back in 2023 deals the lady who was promoting this has left Stratstone Chesterfield and no they no longer offer any deals like this anymore which is sad as Gov want us to buy british made built cars.
Have you looked outside of Motability or it is not an option for you?
https://www.autotrader.co.uk/car-details/202605072193856
Sent from a mobile device.
Apologies for briefness and spelling mistakes.Motability Skoda Enyaq SportLine 85x April 2024 (unhappy customer, but won my case with Ombudsman)
Motability Mazda CX-60 PHEV July 2023 (unhappy customer - early termination on mechanical grounds)
Motability VW Touran Family Pack May 2019 (happy customer)Under a franchise agreement:
● The retail price of the vehicle is set by the dealer, so haggling is possible
● Sale contract is between dealer and customer
● Stock is owned by the dealer
● Dealers can pre-register cars to hit a target
● Specific costs associated with the brand, such as signage, are borne by the dealer
● Dealers can discount cars by ‘giving away’ some of their marginUnder an agency agreement:
● The retail price of the vehicle is set by the manufacturer, so there is no haggling
● Sale contract is between the brand and buyer
● Stock is owned by the manufacturer
● Dealers can’t pre-register cars
● Specific costs associated with the brand, such as signage, are borne by the manufacturer
● Dealers cannot discount models by ‘giving away’ the manufacturer’s marginMini switched to an agency model in Q1 2025. Over the last 18months has @BigDave ‘s “offers &cashback” thread had any Mini offers in?
Parent company BMW, delayed moving to an agency model in 2025 and is expected at the earliest to move to an agency model within the first half of 2027.
Stellantis, I beliee delayed switching due to uprar from dealers and other brands may swtch to agency at a later date. others have no plans to.
The best thing anyone can do, if they don’t want to buy from an agency model, is to vote with their feet and buy a car from a franchised dealer, which if enough do it, it will send a clear message to manufacturers, they do not want agency models in the UK. Unfortunately, not everyon one wants to haggle or have the ability to do so!
I can understand dealers that are operating under an agency model not offering any additional discounts or cash back offers for Motability customers, but I can’t see that working for private purchases.
I know that Porsche dealers don’t negotiate on new cars, and I suspect that many other luxury brands are the same, but for normal, or even premium brands, it would simply kill their business. As an example, in addition to the VAT and VED exemption, I negotiated an additional £17k discount off my new BMW private purchase recently with the dealer. Had this not been an option, I would not have bought the car.
Therefore, an agency model, as described above, will only work if one of two things happen. Either dealers do still have some wriggle room, or manufacturers will need to lower their retail prices considerably, to reflect the prices that private buyers pay in reality. If neither of these things happen, it has the same effect as manufacturers imposing massive price increases, which will kill demand.
I’m no longer in the market for any new car, let alone a Mini but, if I was, I’d put money on the fact that I could screw a discount out of them 🤣
I can understand dealers that are operating under an agency model not offering any additional discounts or cash back offers for Motability customers, but I can’t see that working for private purchases. I know that Porsche dealers don’t negotiate on new cars, and I suspect that many other luxury brands are the same, but for normal, or even premium brands, it would simply kill their business. As an example, in addition to the VAT and VED exemption, I negotiated an additional £17k discount off my new BMW private purchase recently with the dealer. Had this not been an option, I would not have bought the car. Therefore, an agency model, as described above, will only work if one of two things happen. Either dealers do still have some wriggle room, or manufacturers will need to lower their retail prices considerably, to reflect the prices that private buyers pay in reality. If neither of these things happen, it has the same effect as manufacturers imposing massive price increases, which will kill demand. I’m no longer in the market for any new car, let alone a Mini but, if I was, I’d put money on the fact that I could screw a discount out of them
When ou sit back and take a wider view of this agency approach, you realise all they are doing is, opening the door wider to China!
s Over the last 18months has @BigDave ‘s “offers &cashback” thread had any Mini offers in?
Looking back on my ‘Offers’ spreadsheet (yes, I do keep records), the last publicised Mini Motability offer was in Q1 2025 – £500 off/cashback at Marshall Mini.
This offer concluded on the date Mini moved over from the franchised dealership model to the agency model (March 25).
There have been no publicised deals or special offers on Mini Motability vehicles since.
However, I did hear of one Mini dealership a few months ago who were willing to offer a £400 cashback deal, albeit very much ‘under the radar’. It was rather convoluted in that all the paperwork showed the full AP (no hard copy mention of the cashback – anywhere) and the full AP had to be paid by bank transfer.
Only once the transaction was fully completed and the vehicle delivered and accepted by the customer would the cashback be paid in actual cash (probably in a plain brown envelope)!
It involved a great deal of trust on the part of the customer that the cashback would actually be paid had the deal gone ahead, due to it being agreed verbally only with no written record. However, it did serve as an example that some form of deal may be possible, however sketchy!
As the example above shows, if a dealer operating under the agency model can find a way to discount £400 for a Motability sale, there will inevitably be bigger discounts available on far more lucrative private sales. Dealers will have to find a way to remain competitive, especially for repeat customers who are used to negotiating big discounts.
I can understand dealers that are operating under an agency model not offering any additional discounts or cash back offers for Motability customers, but I can’t see that working for private purchases. I know that Porsche dealers don’t negotiate on new cars, and I suspect that many other luxury brands are the same, but for normal, or even premium brands, it would simply kill their business. As an example, in addition to the VAT and VED exemption, I negotiated an additional £17k discount off my new BMW private purchase recently with the dealer. Had this not been an option, I would not have bought the car. Therefore, an agency model, as described above, will only work if one of two things happen. Either dealers do still have some wriggle room, or manufacturers will need to lower their retail prices considerably, to reflect the prices that private buyers pay in reality. If neither of these things happen, it has the same effect as manufacturers imposing massive price increases, which will kill demand. I’m no longer in the market for any new car, let alone a Mini but, if I was, I’d put money on the fact that I could screw a discount out of them
When ou sit back and take a wider view of this agency approach, you realise all they are doing is, opening the door wider to China!
I almost posted yesterday about the Chinese taking over and was going to say my local Fiat dealer is now a BYD dealer and a VW Seat dealerships is now a Geely dealership so not so much buyer beware but seller beware.
Thanks @BigDave
When youu sit back and take a wider view of this agency approach, you realise all they are doing is, opening the door wider to China!
I almost posted yesterday about the Chinese taking over and was going to say my local Fiat dealer is now a BYD dealer and a VW Seat dealerships is now a Geely dealership so not so much buyer beware but seller beware.
This ‘invasion’ by Chinese vehicles rather takes me back to the 1970’s/early 80’s when we had a (similar but smaller) invasion of Lada’s, Polski Fiats, Moskovich’s, Yugo cars etc etc.
All were very cheap compared to contemporary British/European/Japanese built cars and Lada in particular seemed quite popular on the roads.
However, how many ‘wrong side of the Iron Curtain’ vehicles does one see on sale in the UK nowadays? It was a short lived phenomenon, particularly when buyers realised that ‘buy cheap’ usually equals ‘sell even cheaper’!
Perhaps history may repeat itself. However the problem may be how long can the European, Japanese and perhaps even Korean manufacturers stay in the game, whilst they are being undercut by the Chinese?
We have already seen such as Ford, VW, Stellantis and other European manufacturers cut models, production (and jobs and plants). On our shores, even Nissan at Sunderland have scaled production back. There comes a tipping point where to continue becomes financially suicidal. Hence they may end up climbing into bed with the Chinese, simply to survive.
It is certainly a concern and ultimately choice will suffer.
Chery, Omoda or Jaecoo sir? That is your choice (even though all look exactly the same).
If the build quality and longevity of other ‘made in China’ consumer goods are anything to go by, it’s definitely a case of ‘buyer beware’, but thankfully Motability customers don’t need to worry about such things!
If the build quality and longevity of other ‘made in China’ consumer goods are anything to go by, it’s definitely a case of ‘buyer beware’, but thankfully Motability customers don’t need to worry about such things!
China currently leads the world in R&D across the majority of critical and strategic technologies, including AI, renewable energy, EV batteries, robotics, quantum communication, and small satellites.
The country also the leader in PV panel & iverter technologies, with many of the leading brands orginating from China.
The top 10 security industry inc of CCT manufacturers come out of China, recognised for reliabilty, performance nd leading tech, with brands like UNV still bing FDA approved, after Trumps spat!
You only have to look how europe has been in bed with China, with manufacturing partnerships or understandings and how european auto manufacturers are starting to build vehicles in China for the eurpean markets.
You can even get sneakers on par, if not better than Nike/Adidas, but not on TEMU!
- You must be logged in to reply to this topic.