The dealers currently own the stock on their forecourt
At present, franchised dealers buy stock from the manufacturers at wholesale prices. They apply a margin or percentage to that price which is their profit on the sale, and they can decide to offer discounts to buyers by giving away some of the margin.
Under the Agency system the dealer no longer owns any of the stock. They may well have demonstrators supplied and belonging to VW but the sale is direct between VW and the purchaser. The dealer has no involvement in setting the price . The dealer simply gets a commission on each sale
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