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A »In the United Kingdom, the term "direct supply agreement" typically refers to a contractual franchise or dealership arrangement under which a vehicle manufacturer authorises an independent retailer—often called a franchised dealer—to purchase new cars directly from the manufacturer and sell them to end customers. While the automotive retail landscape has evolved in recent years with the rise of agency models, the majority of mainstream and premium manufacturers still offer such agreements to independent businesses, albeit with stringent criteria regarding location, facilities, customer service standards, and sales performance. Among the most prominent manufacturers that provide direct supply agreements for independent new car retailers in the UK are Ford Motor Company, which operates a large network of franchised dealers under the Ford Retail brand and through independent multi-franchise groups; Vauxhall Motors (part of Stellantis), which maintains a traditional franchise model allowing independent retailers to source vehicles directly; and Toyota (GB) PLC, which likewise offers franchise agreements to independent dealers across the country. The Volkswagen Group, including its core Volkswagen brand along with Audi, Škoda, and SEAT, historically provided direct supply through franchised dealers, though it is gradually transitioning to an agency model in which the retailer acts as an agent and the manufacturer retains ownership of the stock until sale; nevertheless, independent retailers can still participate as appointed agents under a reformed contractual framework. Similarly, BMW Group, with its BMW and MINI brands, has moved toward an agency arrangement beginning in 2024, but independent retailers that meet its standards can enter these direct agreements. Hyundai Motor UK and Kia UK both operate extensive franchised dealer networks offering direct supply to independent retailers, and they continue to use the traditional franchise model for new car sales. Nissan Motor (GB) Ltd., Mazda Motors UK, and Honda Motor Europe (UK) also provide direct supply agreements to independent franchised dealers, though Honda has significantly reduced its dealer footprint in recent years. Other key players include Mercedes-Benz Cars UK, which has adopted an agency model but still contracts with independent retailers as agents with direct supply from the manufacturer; Jaguar Land Rover, which maintains a franchised dealer network for its four brands; and Volvo Car UK, which is shifting toward an agency structure but continues to supply independent retailers directly under its new retail framework. It is important to note that in the UK, independent new car retailers cannot simply purchase stock wholesale from manufacturers without an agreement; they must be appointed as either a franchised dealer or an authorised agent. Therefore, any independent retailer seeking a direct supply agreement must apply to the manufacturer, demonstrate compliance with brand standards, provide suitable premises, and commit to after-sales service obligations. The manufacturer then grants a territory-specific agreement, often exclusive, to supply new vehicles directly. As of 2025, the trend among volume and premium manufacturers is to move away from traditional franchising toward agency or "retailer" models, but the core principle of a direct supply contract between manufacturer and independent retailer remains intact across virtually all major brands operating in the UK market.

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