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Volkswagen Dealerships to Take “Agency” Approach to EV Sales

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“agency” approach to EV sales
Photo: Volkswagen

Volkswagen has been making a huge push for electric vehicles in recent years. Their ID family of electric cars has recently launched to much success, and despite setbacks caused by COVID-19 delays, more EVs are on the way in the coming months and years. However, their method of selling these vehicles to consumers has just been changed. In a recent statement, Volkswagen confirmed that 100 percent of VW dealerships will now take an “agency” approach to EV sales.

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Inside the “agency” approach to EV sales

The process for VW’s new EV sales method goes like this. The customer will place their EV order directly to Volkswagen either online or in person. The customer will then name their preferred dealer, and that dealer will then become a sales agent. These duties will include selling the vehicle itself, organizing test drives, processing the transaction, and ensuring that the EV is delivered to the customer as satisfactorily as possible. Other new responsibilities for Volkswagen dealers will include vehicle financing, returns, residual risk value, and more.

One of the key reasons Volkswagen is now taking an “agency” approach to EV sales is to help those sales increase. One issue that VW has faced in the past is the very real possibility of an on-site sales pitch persuading customers into going with a more traditional gasoline vehicle. To help with this, the agreed-upon price of the EV and the dealership’s commission will be fixed. It is hoped that these measures will help get more electric vehicles into the hands of the drivers who want them.

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In June of 2020, Volkswagen will launch its new ID.3 electric vehicle in Europe. This launch will see the beginning of this new “agency” approach for VW dealerships. With this substantial shift in sales tactics, the electric vehicle revolution continues to change how the auto industry conducts business. Stay tuned for more updates as they become available.