Mercedes-Benz UK celebrates success of agency model with 100,000 private sales

Mercedes-Benz UK has delivered new cars to over 100,000 private retail buyers since it implemented the Agency sales model in January 2023.

The 100,000th customer collected a new Mercedes-AMG E 53 Hybrid 4matic+ in March from Mercedes-Benz of Guildford, part of the Sandown Motors Group.

“It is a privilege for Sandown to serve the 100,000th private retail customer to purchase a Mercedes-Benz under the Agency model,” said Gavin McAllister, group managing director, Sandown Motors, who heads Mercedes-Benz retailer board.

“This is a significant milestone for Mercedes-Benz agents and our partners at Mercedes-Benz UK, and underlines the considerable success we are achieving together: a desirable and competitive model range aligned with the trust that customers have in our contemporary and transparent pricing proposition."

He said the agency model had proved to be a game-changer for the Mercedes-Benz network by enabling a high volume of profitable new car sales. "It’s undoubtedly giving us an edge in the market,” he added.

Mercedes-Benz UK recorded sales of 17,664 vehicles in March. AMG and plug-in hybrid (PHEV) models performed especially well, with sales up by 49 and 38 percent respectively versus March 2024. With a market share of 4.7% and a total of 27,415 vehicles sold year to date with private retail demand increasing by 10%.

"Three years into our direct-to-consumer Agency model, Mercedes-Benz customers are full of praise for the seamless, personalised car buying journey we have developed. 

"Rating us with an average of 4.85 out of 5 stars, both new and returning Mercedes-Benz customers express satisfaction with the experience we deliver in collaboration with our network partners," added Sally Dennis, sales and marketing director, Mercedes-Benz UK

Moving into Q2, the business said Michelle Brogden has now taken over from Andrew Dean as head of sales at Mercedes-Benz UK.

Reporting to Dennis, her appointment combines the national sales, campaign planning and sales operations functions.

The news comes in the same week that Mercedes-Benz Retail Group officially ceased trading after years of financial challenges, as revealed in its latest annual accounts.

The manufacturer-owned AM100 dealer group had recorded substantial losses in recent years prior to Mercedes' decision to break up the business, selling off its dealerships and market areas to LSH Auto UK, Sytner Group, L&L Automotive, Sandown and Hedin. It had also closed some Mercedes dealerships in the Greater London region.

Documents filed with Companies House indicate that the group has been working to settle its debts, with plans to transition the company into dormant status with the directors confirming that no future trading activity is expected.

Since the disposals, MBRG has repaid its entire capital allocation reserve of £21.5 million to Mercedes-Benz UK plus a £17m dividend.

Director Wolfgang Pipperger, chief financial officer at Mercedes Benz UK, confirmed the closure in the accounts filing, stating: “During the period, the company sold its remaining dealerships at which point the company ceased to trade. After the reporting date, the company disposed of its remaining leasehold premises, recovered its remaining trade and other receivables, and settled any outstanding trade and other payables with a view to move the company into a dormant status.”

The closure follows years of heavy financial losses, including a £35 million loss in 2019 and a £20.9 million loss in 2020. The group's struggles culminated in the closure of its Bradford dealership, which had been in operation for 70 years, and ceased trading on October 31 last year.