Beltway Companies
Global Dealerships. What is the Difference?
One of the things I enjoy most when traveling abroad in Europe - Greece, Italy & France - is taking a closer look at their automotive trends. That is understanding how dealers operate in Europe. Namely, what are some of the biggest differences on the dealer level? Here are some of the key differences and a few are worth taking a second look at!
Store Fronts Without Dealer Lots. Limited Inventory. The Interior is More of a Meeting Place than a Traditional Showroom.
One of the biggest differences between the US and Europe are the physical dealership location themselves. Where for us, it is about maximizing the real estate we have. Making sure we have the right vehicles parked out front with sale prices. This is not the case for many of the dealerships in Europe. In Paris for example, the dealers are mostly in the city center. The entrances are grand with floor to ceiling windows that showcase a few select vehicles. The OEM logo is a prominent feature on the exterior, but blends in with the overall building. As for the interior, there are only a few vehicles parked in the dealer showroom. In fact, it is not really a showroom, but rather a meeting room to speak with new buyers. This is a far cry from the dealership setup we are accustomed to with showrooms being a focal point of the dealership.
Test Drives? Demos are not as Prevalent as they are with us. The Customer Buys the Vehicle Sometimes Without Test Driving it!
I was able to speak with a dealer and I was told that in many cases the customer will purchase their vehicle and have it delivered to them either at the dealership or at home. But in many cases, all of the decision making is done at the store and it is a very straightforward process. I have always believed that a test drive is a key aspect of making a deal happen. Where if the customer is not happy with the vehicle than all bets are usually off when it comes to selling the vehicle. Would you purchase a vehicle without test driving it?
Key Takeaway?
The biggest takeaway was the fact that from the two dealerships I visited they were very focused on customer service. As for inventory, there were very few cars on the showroom floor. If the customer wanted to review another model it was done so by going online. The sales consultant would then review and explain the features at the desk. And while that is not the case for all European dealerships, it is quite different than of what we are accustomed too. Lastly, when I mentioned the word BDC I got a confused look. BDC centers are also not common. Bottom line, I always encourage you - when traveling abroad - to take a minute and tour a dealership. It is always fascinating to see what the major differences are in how we operate on the dealer level.
What is one of the biggest differences you have noticed when traveling abroad?
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