All Volkswagen dealers have contracts for the new sales model for vehicles with fully electric ID. family signed. The sales launch of the ID.3 marks the start of the agency model for private customers and small commercial enterprises that has already proven its worth for major customers over many years. The advantage for customers: You can switch seamlessly between online and offline channels and order directly from Volkswagen, while the preferred dealer remains your local contact. In this agency model, the dealer acts as an intermediary and receives a commission from Volkswagen for this.
The agency model created the contractual basis for integrating online business and showroom model (brick-and-mortar). From sales launch, customers can order vehicles from the ID. family direct from Volkswagen. At the same time, they choose their preferred dealer, who is available for personal support and on-site services.
In the agency model, the dealers act as intermediaries for sales to private and small commercial customers. They take care of the acquisition, advice, implementation of test drives, handling the business, and delivery in coordination with Volkswagen. The desired dealer named by the customer at the beginning of the sales process receives commission and bonus in the same way as in the stationary business, even if the vehicle is purchased directly online from Volkswagen. The price of the vehicle is set by Volkswagen. This eliminates complicated price negotiations. This means that dealers can rely on predictable remuneration, regardless of whether the customer buys their vehicle online or in a dealership.
Holger B. Santel, Head of Sales and Marketing Germany, says: “We now have 100% of all partners on board. The broad approval of our trading partners for the agency model is a strong signal for the future. With the agency contract, Volkswagen and dealership become one from the customer’s perspective. Our customers expect exactly this seamless, coordinated buying experience across all contact points.”
Volkwagen also finances the vehicles and bears the returns and risk of residual value. Santel: “The dealer no longer has to pre-finance the vehicles. We also cover the cost of warehousing and showroom vehicles. We are making the showroom vehicles available to the dealer using an extremely attractive leasing concept.”
Dirk Weddigen von Knapp, Chairman of the Volkswagen and Audi Partner Association, says: “Especially in these times, the agency model is a significant financial relief for dealers. This enables our partners to concentrate on what makes retailing irreplaceable: personal, competent customer care. I am pleased that our jointly drawn up contract was signed by all partners. This shows the great trust in the agency model and the association.”
The agency model also answers the growing customer demand for a seamless switch between online and offline channels throughout the purchase process. With the consent of the customer, data about them and their vehicles will be used to communicate with them personally and consistently across all contact points. The new IT system “Thunder” is being developed and will debut at dealers with the launch of the ID. family. The configuration process is also simplified: ten clicks are enough for the ID.3 to the fully configured car.