Volvo Cars UK will now dispose of its vehicle fleet which have been driven by executives, leasees, or subscription users through an online platform rather than offering them to the national dealer network through a tender or auction process.
The Volvo Cars Selekt Direct platform is yet another nail in the coffin for the UK dealer network which is being relegated by the manufacturer to solely become a provider of service, maintenance and repairs for these vehicles.
It’s the first time a manufacturer has done this in the United Kingdom and it doesn’t bode well for dealers who depend on such used vehicles to claw back some margin for their businesses.
The Care by Volvo car subscription service delivered more than 2500 online new sales, equivalent to 15% of all Volvo’s retail sales and 7% of the brand’s total UK new car sales in the first year of operation.
That is 2500 used vehicles the UK dealer network won’t see on their respective yards.
Volvo Cars has announced its intention to sell all its new electric models online and for the majority of its UK retail sales to be online by 2025, while all Volvo’s global new car sales are expected to be through online transactions by 2030.
Research by Volvo Cars UK confirms one in four people surveyed said that they find the direct-to-consumer used online concept ‘very appealing’.
Volvo Cars Selekt Direct customers can exchange their car within 30 days or 1500 miles if they are not happy with their purchase for any reason. The service includes UK nationwide delivery on all cars.
Volvo’s UK retailer network will provide all subsequent servicing, maintenance and repair services.
“With Volvo Cars Selekt Direct, we are improving our service to consumers and developing a blueprint for our transition to online sales. Strategically, our retail partners will remain central to our business in providing full aftersales support, including servicing, maintenance and repairs,” Volvo Cars UK managing director Kristian Elvefors says.
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