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The newest car brand to land in Australia will bypass the traditional dealership sales model in favour of an online, fixed-priced agency agreement to target the younger market.
Cupra is looking to disrupt the traditional new car sales model.
Potential buyers have traditionally spent time in a range of dealerships, test driven their new ride, and gotten a feel and smell for their investment. That approach has worked - and continues to work - for the majority of buyers and sellers.
But according to Cupra CEO Wayne Phillips, the VW offshoot brand will be targeting the “next generation” of buyers in an online environment where they can immerse themselves in the metaverse they’re familiar with, and simulate car ownership before placing an order.
The only physical contact, should buyers wish to go down that route, will be when buyers walk in to a Cupra “garage” to finalise the sale.
Alternatively, they can visit a “city garage” to go for a test drive and then finalise the transaction online.
Cupra opened its first “city garage” in Sydney in July of 2022, with another due to open on Melbourne’s Swan St in Richmond in the near future.
Like Mercedes-Benz and Honda, Cupra has adopted an “agency” pricing model, meaning a fixed online price that doesn’t change between dealerships.
Cupra argues this approach provides transparency and avoids differences in “transactional prices” that can see some owners pay thousands more than their neighbours because they weren’t as good as haggling or didn’t cross-shop dealerships.
Only time will tell whether Cupra’s online-only approach can achieve the company’s objective of 7,000 sales in Australia by 2025.