Written by Jack Cameron
One of the most common questions we get from clients is, “Why shouldn’t I just buy a car directly from the manufacturer?” At first glance, it makes sense, you’d think cutting out the middleman would be the best route. However, the reality is quite different. The experience, pricing, and overall convenience vary significantly between buying from a manufacturer-backed dealership and working with a broker like P+B.
In this article, we’ll show you why 1000s of clients choose P+B for their vehicular needs instead of going directly to the manufacturer.
Am I better going straight to the manufacturer?
In short, no. Here’s why:
If you walk into a dealership, you’re not actually dealing directly with the manufacturer. Instead, you’re interacting with a third-party franchise that has purchased the rights to sell cars in that area. And that setup presents several challenges for you as a customer:
1. Their loyalty is to the manufacturer, not to you. Dealerships must meet strict sales targets, maintain high customer satisfaction scores, and minimise complaints to retain their franchise. If they fail, the manufacturer can revoke their rights to sell those vehicles. In the premium space, this has happened frequently over the last few years.
2. Dealership pricing includes a retail markup. Dealers buy vehicles at wholesale prices and add a margin on top to make a profit. This often results in higher prices for the customer.
3. Dealers push finance products that suit them, not necessarily you. Most dealers will encourage Personal Contract Purchase (PCP) plans over other financing options because they bring in higher commissions. While PCP can be beneficial in certain cases, it often leads to larger monthly payments and a significant balloon payment at the end. At P+B, we focus on Personal Contract Hire (PCH), which is often a better fit for most of our customers. That being said, if you would prefer PCP, we can certainly accommodate for that. You can read more about the differences by clicking here.
4. Limited access to options. Going to a single dealer is like going to just one bank for a mortgage; you’re only seeing a fraction of the options available. This is fine if you have your heart set on one particular make, but if you want to browse multiple products, you’re adding on hours of extra work going to other dealerships. As a broker, P+B gives you access to the entire market, ensuring you get the best possible deal.
So, if something goes wrong with your car and you need to escalate an issue, ask yourself: who is going to fight harder for you? Is it the dealer that represents the manufacturer, or the broker whose entire business model is built on representing your best interests?
“Well, you would say that”
Fair enough. But let’s put it to the test. Typically, a dealership will push PCP deals because they earn more commission. What’s in it for us? Nothing, our commission model is built on transparency. We only recommend what’s truly best for you.
How Pike+Bambridge get you better pricing
While excellent service is a crucial part of the car-buying experience, price is often the deciding factor. Here’s how our business model allows us to offer better pricing than traditional dealerships:
1. Specialisation and Buying Power
There are over 25 manufacturers of cars in the UK, and we aren’t ashamed to say we specialise in certain brands. That doesn’t mean that we can’t source your dream Aston Martin, or support your business get that Fiat 500 that you’re looking for, but when it comes to price, our specialisation means 80% of the cars we sell come from just 8 brands.
What this means for you is we have more buying power than many dealerships do. As an example, our clients lease and purchase more Volkswagens than many dealers, and we would be one of the top retail Audi dealers in the UK if we were an Audi retail dealership (thankfully we aren’t!).
2. Lower Overheads = Better Prices
Imagine going to pitch the dealership business model to an investor in today’s world…
“What it is, is a huge retail space that costs a fortune to maintain, with lots of high-value stock that depreciates daily (and we have to pay interest on the finance for). The online service is patchy at best, and most customers associate dealing with the business model as a monumental hassle…”
It doesn’t sound like a winning business model, does it? And yet, many dealerships operate with overheads of over £250,000 per month. That kind of expense forces them to maximise profit on each sale, often at the customer’s expense. If you don’t haggle, you’re likely not getting the best price.
At P+B, we keep our costs lean and pass the savings directly to you. Without the burden of expensive showroom upkeep, large in-house staff costs, or high-interest stock financing, we can focus purely on getting you the best possible deal.
The Pike+Bambridge way
We get it, ordering directly from the manufacturer may seem appealing. Why wouldn’t you order a Polestar directly from Polestar? Or a Tesla from Tesla?
It’s the exact same car, but it’s the level of service that comes with it. When you work with P+B, you get a hassle-free experience that prioritises your needs, not the manufacturer’s sales targets. Our approach is simple:
- We fight for you, not the car brands.
- We provide access to the entire market, not just one franchise’s stock.
- We offer the best finance options for you, not the ones that pay the highest commission.
- We keep overheads low, so you get the best price possible.
So, the next time you’re thinking about buying a car, ask yourself: do you want to be sold to, or do you want expert guidance tailored to your needs?
With P+B, the choice is clear.
