Car Dealer Magazine: Issue 1

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CarDealer.

Issue One April 2008 www.cardealermagazine.co.uk

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Driving the future of the motor trade

EVO

Mitsubishi

Wild child’s back and even more mental

+PLUS

Check Mate

Avoiding burnt fingers

Wonder Web

How you can sell insurance

Geneva Show

What you’ll be selling soon

FIAT 500 It’s hit the UK, but

can Fiat’s new baby out-mini the Mini?

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LOTUS EUROPA Think of it as an Elise with a Electric roof. But who’ll buyway it? i on the

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0115 946 6370

Many Happy Returns 17% of our business comes from returning customers – and we always encourage people to visit the same dealer for their next vehicle (or point them towards a supporting dealer from our network).

To help your business benefit from our many returning customers, join our dealer network by calling 0115 946 6370 today.

First Response Finance Limited, Chetwynd Business Park, 5 Regan Way, Chilwell, Nottingham NG9 6RZ

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start

Issue one | April 2008

‘Mitsubishi’s renowned all-wheel drive chassis boasts loads of clever electronics designed to keep you out of trouble no matter how silly you are.’

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like new. New cars, new shoes and new challenges.

Which is why we’re bringing you an all-new magazine.

Some of you may have known me from my days editing Niche Motor Finance magazine. Obviously I’ve left there now – along with my brother Jon who also worked on the title – to launch Car Dealer.

Being business owners yourselves you’ve probably taken the big step of branching out on your own at some stage. It was a difficult decision to make, but one we knew was right.

Sometimes you have to cut the apron strings and give it a go yourself, otherwise you’ll never know if it’ll work. So we did. It helps that we’re passionate about the motor trade and passionate about magazines – so a car mag for the automotive industry makes sense.

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So to Car Dealer – what’s it all about? Well, every month we aim to give members of the trade, something fun and interesting to read.

We know you probably sell cars because you’re petrol heads, if you weren’t, you’d be flogging houses, so every issue we’ll have reviews of interesting motors, industry news and ideas for you to make more money.

Obviously we’re a commercial venture.

The reason we can bring you this glossy mag every month is because of the fantastic support from our advertisers. They want to be associated with a quality product and for you to do business with them. All I’d ask is that if you like their ideas, services or products you give them a call and tell them where you saw the advert. That way we’ll be able to carry on bringing you Car Dealer every month!

And don’t forget our new website too. At www.cardealermagazine.co.uk you can read

all the latest news and events, my ramblings in an editor’s blog and subscribe to get this magazine for free every month (for subscription details, see page 50).

This first issue is absolutely packed with stuff. From road tests of the new Evo X – pictured above – to the funky Fiat 500; features on Codeweavers and Experian, as well as comment from Auto Protect, The AA and Autotrade-mail among others.

I hope you enjoy Car Dealer. I’d love to hear what you think of the new magazine, features you’d like to read and anything you want us to road test (contact details on p54).

Happy selling…

James Baggott, Editor

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ignition

dashboard 06

Agenda

08

Ferrari Approved

10

Geneva show report

12

New Corvette C6

15

Cardif’s rethink

16

Follow the leader

Engines ready? Here’s what’s in Car Dealer | Issue one | April 2008

A ‘Close’ working relationship

21

How supercars find second homes The cars you’ll be selling soon

Big brash Yank gets more power Dealer products get a new look BuyYourCar’s clever leads scheme

forecourt 18

Mistubishi Evo X

21

Lotus Europa S

23

Fiat 500

24

Alfa Brera

It’s better than the last one

43 ‘Last year Audi hit us with the ultimate: a supercar to take the fight to its other major German competitor – Porsche.’

Is this a Lotus-lite?

27

Finally, a real rival to the MINI A diesel sportscar? Surely not

features 27

Cult Cars

31

F&I agenda

33

Cracking the code

39

On the spot

41

Tried and Tested

43

Check it out!

48

Gadgets

51

AA Warranty

52

Used Cars

53

Trading Places

Closer look at Audi’s legendary R8 How Auto Protect can help you Codeweavers’ clever web software Black Horse boss gets a grilling

10

Autotrade-Mail remembers top ideas Experian’s Auto Check makeover Win a cool Bleutrek handsfree kit!

Don’t let the credit crunch bite CAP’s insight into secondhand sales We try to sell car for charity BEN

33

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agenda

Close Motor Finance works side-by-side with dealers. Here’s how one benefits from the tie-up

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PERSONAL

first glance at any of the three sales outlets of the Bridgend Group in western Scotland, or the group’s extensive website, suggests this company must be a major plc.

In fact the group is a family owned private set-up run by two brothers. It combines two large used car outlets in Ayr and Kilwinning near Irvine with a Mitsubishi new car showroom in Bridgend, and includes a separate bodyshop business.

The two used outlets in particular have greatly expanded in recent years, and today each boasts sales stretching to 500 cars, so it is little surprise to hear that finance plays a very important part in the business.

For the past four years this has been provided

by Donacster-based Close Motor Finance. As Graham Kirkwood, general manager at Bridgend and responsible for the finance operations of the group, explains, the two companies came together courtesy of Bridgend’s previous finance provider ceasing operations – and it’s a decision that the group has not regretted.

‘Our relationship with Close was precipitated by the demise of First National and Wagon Finance,’ Graham told Car Dealer. ‘We went with Close because many of the people we had previously dealt with had moved over to the company.

‘Having an excellent personal relationship with your finance provider is essential – you need to know at all times that there is someone at the end of the phone to resolve your problems – some of the larger firms in the business forget that and become a bit too jobsworth-like.’

Alan Richmond, the account manager at Close responsible for Bridgend, fully agrees, and even admits that the expansion of Bridgend in recent years has resulted in Close upping its game to ensure it could effectively service the business.

‘It has mushroomed somewhat,’ he said. ‘Particularly in terms of the used car specialist sites.

Bridgend seems to have found itself a useful niche in that it invests a lot of time and effort in selling top quality three to seven-year-old cars, which of course is exactly the age when used stock becomes of no interest to the major manufacturer-owned franchises. As a result they’ve built themselves an excellent business.’

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The relationship between dealer and finance provider has become even more important in the current climate, one in which trading conditions are becoming ever tougher.

With the actual sale of the car realising nothing like the levels of profit that were the norm some years ago, securing the finance has never been more important for the dealer, but at the same time the competition has become more fierce.

Many banks and other institutions are now offering direct lending and promoting it on the internet to an effectively captive audience.

Yet the Bridgend/Close business model combining quality cars with quality finance provision is reaping benefits for both companies, as Alan’s boss, Scotland branch manager for Close Motor Finance Phil Wilson explains.

‘Bridgend is fairly typical of one of our larger accounts, and a very successful one. The market we are in is tough right now, with point-of-sale finance under great pressure, but even with the current credit crunch we here in western Scotland are doing okay – our figures have been up through both January and February.’

For his part, Graham is unwilling to totally criticise the role the web has played in changing the face of finance provision. ‘Being able to market our used cars on the internet has made a big difference, most of our enquiries now come that way,’ he says.

The challenge now is to ensure that customers prefer the personal touch when it comes to finance, and according to Graham initiatives such as the FLA’s SAF accreditation help in this aim, presenting a better image of point-of-sale finance provision, and can actually be used as a sales tool.

Phil agrees that the SAF initiative has had an effect on particularly the used market with the smaller outlets especially having to rethink what have previously been fairly simple methods of selling cars.

At the end of the day, Graham says, the relationship with Close helps the Bridgend business. ‘We know their background, they know ours – they know we are not a backstreet outlet, they like our calibre and our quality of customer,’ he concludes. Sounds like a winning combination!

Graham Kirkwood, right, with Close’s Alan Richmond

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Graham Kirkwood in the foreground with part of his sales team, from left, Billy Devine, Peter McLachlan and Gerry Gavin

The special working relationship between Close Motor Finance and Bridgend has paid dividends

‘Having an excellent working relationship with your finance provider is essential.

Some forget that and become too jobsworthy.’

CarDealer

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dashboard

Supercar seconds

Brough

Sub-Prime Time

In these tough times is your finance provider helping?

I

t’s looking like a tough year, and if I’m reading the signs right, I think the relationships between finance providers and dealerships are going to be strained in 2008. The relationship that exists between motor finance providers and dealers is a partnership and both parties need to ensure they work towards the on-going success of the other, otherwise both will eventually suffer.

However, under the current financial situation, I’m already hearing more rumblings of further tightening of lending criteria, reduced commissions and increased debit backs, which is the last thing a dealer needs to hear with the general slowdown in spending.

In addition to these rumblings, new car prices ‘I’m already will inevitably fall, with the hearing more resultant reduction in used prices, and so margins will rumblings be squeezed further. of further Strangely perhaps, the tightening of current financial situation lending criteria is likely to be good for First and debit backs.’

Response and other nonstandard finance providers as more previously prime customers are pushed into our non-standard market segment, growing our opportunities.

Of course every business has to consider its own sustainability first, but I think now is the time for the non-standard finance providers to recognise that our dealers are at risk and cutting accept rates and F&I income may just be the difference between maintaining a strong and loyal dealer base or seeing progressively more and more dealers close down or be bought out.

If finance providers don’t recognise that the relationship which exists between them and the dealer is a long-term partnership, then I’m concerned that we’ll see a considerable shrinkage in small to medium-sized dealerships, a reduction in choice for the consumer and an ever reducing range of business introducers for the finance provider.

I clearly understand the need to tighten belts in the prime finance market, but if your non-standard finance provider starts to squeeze your relationship I’d ask some serious questions or find another provider.

Who is Don Brough?

Don is chief executive officer of First Response Finance. For more information contact www.frfl.co.uk or call 0115 946 6370.

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Italian legends Ferrari launch all-new approved used car scheme with manufacturer-backed warranty cover EVEN supercars have to find second homes when their original owners grow bored and want the next best thing.

Now Italian legends Ferrari have realised this with the launch of its own approved used car scheme.

The Ferrari Approved programme offers peace of mind and reassurance for customers purchasing one of the marque’s legendary cars up to nine years old.

Cars come with a warranty, backed by the manufacturer, and vehicles get a comprehensive technical inspection.

The manufacturer says the Ferrari Approved scheme is testament to the company’s confidence in the enduring appeal of cars wearing a Prancing Horse badge. ‘With an average of less than

900 pre-owned Ferrari cars sold through the official dealer network in the UK each year over the past 10 years, a Ferrari Approved car remains as exclusive as the day it was delivered to its first owner,’ said a Ferrari GB spokesman.

‘The programme is available through any of the 15 official Ferrari dealers in the UK and offers considerable benefits to customers for ultimate peace of mind.’

Included in the Approved programme is a 190-point inspection and any parts that need replacing will be manufacturer approved. An independent check of the car’s identity, mileage and ownership history is carried out and a service history report.

Cars come with a 12-month Ferrari factory warranty and roadside assistance.

Drivers are clueless about C02 emissions

Super Cooper heads team

DESPITE more and more customers visiting dealers armed with environmental information about their chosen car, almost two out of three drivers are still clueless about CO2 emissions.

It may seem that every other customer wants to know MPG and efficiency details, but research by the Environmental Transport Association reveals 65 per cent of motorists aren’t green aware.

Dealers in the south are most likely to come across eco-unaware drivers with 67 per cent of respondents saying they had no idea how much CO2 was emitted by their car. And 33 per cent of London drivers didn’t think their car produced an unreasonable amount of pollution.

RAC Warranty has appointed Ian Cooper as its new sales director. His brief will be to establish and develop the sales operation for RAC Warranty with both franchise and independent dealers across the UK. ‘This is a very exciting opportunity,’ said Ian, who will retain his role with RAC partnership firm The Warranty Group.

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RAC A great choice.

RAC Warranty Bring the reassurance of the RAC brand to your customers with a new and innovative range of warranty products that will help to deliver sales and provide peace of mind - all at prices that you might find surprising and applicable to used cars with even modest price tags.

Parts and Labour Cover at Silver, Gold and Platinum levels

GAP Loan Shortfall Insurance GAP Return to Invoice Insurance Tyre Insurance

RAC Inspected A programme designed to boost performance inside and out

Promotes your stock to a wider audience via

the RAC website. RAC Inspected Cars online showcases your stock to over 2 million unique visitors per month.

Helps you control vehicle preparation costs.

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workshop through freeing your mechanics to concentrate on billable jobs.

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Raises your profile through the positive association with RAC.

MOT Failure Insurance We’ll provide support to you with a superb range of RAC branded point of sale material alongside a simple and easy registration and claims process.

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Helps attract more customers to your dealership.

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Helps maximize your sales opportunities.

For more information contact us on 0845 301 1829 or visit racinspectedcars.co.uk

The insured/FSA regulated products are underwritten by London General Insurance Company Limited (LGI). LGI is a private company limited by shares and incorporated in England, Registered address, Eaton House, 152- 158 Northolt Road, Harrow, Middlesex HA2 0EA, registered number 1865673. LGI is authorised and regulated by the Financial Services Authority FRN202689.

The Maintenance and Repair Contract is provided by The Warranty Group Services (Isle of Man) Limited, of St George’s Court, Upper Church Street, Douglas, Isle of Man, IM1 1EE. Registered Number 094279C. RAC Vehicle Inspections are provided by RAC Motoring Services, Registered in England No. 1424399. Registered Office : 8 Surrey Street, Norwich NR1 3NG.

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7/3/08 14:10:47

geneva show special Tata says Nano could head to UK

BAD news for the big names courtesy of Indian maker Tata. The brand, ever more likely to become the new owner of Jaguar and Land Rover, showed the surprisingly roomy, stylish little Nano, which it plans to sell in India for the equivalent of £1,700! And Tata says a second generation version could head for Europe in around five years time – you have been warned…

Has new Koleos missed the boat?

GENEVA finally saw Renault unveil the long-awaited production version of its Koleos crossover model. But we can’t help but think it looks a bit too much like a jacked up SUV and not much else – and at a time when surely public perception means that the last thing manufacturers want to be building is pure SUVs? We think the Koleos has missed its slot somewhat...

Going green

In one way or another, all manufacturers had a green message at Geneva, reports Stewart James THE example of Ford’s highly attractive new Fiesta in our picture above was one of the few green cars on show in the Geneva halls – but looked at another way, the vast majority of the new models unveiled were ‘green’ in one form or another.

The environmental message dominated every part of the show, from budget maker to six-figure luxury manufacturer – yes, even Bentley revealed a new environmental strategy which will see it cut emissions.

Revealing the Fiesta, Ford announced that the supermini will be the second model in the line-up to boast an ‘Econetic’ version, with measures such as low rolling resistance tyres cutting CO2 under the magic 100g/km barrier – which of course in the UK means free road tax and no London congestion charge. VW and SEAT already

produce such cars in their Bluemotion and Ecomotion ranges, and Vauxhall is expected to follow suit soon.

Similar measures are spreading throughout the executive sector.

BMW’s stand – pictured above – was dominated by a wall of white cars, including the new X6 coupe. Each wore big black numbers detailing the lower CO2 figures courtesy of ‘Efficient Dynamics’, which includes such measures as automatically

stopping and starting the engine at junctions or traffic lights.

Escaping to the Audi stand revealed the newest version of the superb TT coupe, with a diesel engine, and even Swiss styling house Rinspeed, which always unveils an outrageous concept at the show, this year produced the Aqua, a creation that looked little more than a Lotus Exige but on its flanks proudly proclaimed itself as a zero-emission car.

Times, they are a changing…

Next Ibiza is shaping up THIS sharply-styled concept is the work of SEAT’s new chief designer Luc Donkerwolke and is basically the shape of the next Ibiza.

The slightly less aggressive five-door will be on sale this summer, with the three-door following at the end of the year. Imagine a big-engined Cupra version!

‘I was looking back at the history of SEAT – beyond its historical ties with Fiat – and came across this car,’ said Donckerwolke.

‘It’s the DNA of our new

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Ibiza, the way I want to treat SEATs of the future.’

He wants the style to be more multi-faceted and diamond-like and use less concave and convex lines.

‘I want less shades of grey and more black and white,’ he added.

Donckerwolke – a Belgian born in Peru who speaks seven languages including Swahili (‘I was brought up in Africa,’ he explains) joined SEAT at the end of 2005, taking over from Walter d’Silva.

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Dodge takes on Ford with Journey

Mercedes SL63 AMG sticks it to the greens DEPRESSED fans of performance motoring read on – fast cars do remain alive and well in these CO2-obsessed times. VW has revived the Scirocco badge with what is a sharp coupe, pure and simple. It will be on sale later this year. Then there was the Honda CR-Z. Okay it’s a hybrid, but it’s also a serious hot hatch clearly recalling the iconic CR-X of past years. And while it’s a concept, something along these lines will end up in Honda showrooms.

If those weren’t enough for you, there was always the Mercedes stand, where the unveiling of the latest SL roadster included a massive-engined SL63 AMG variant. The green lobby hasn’t quite overcome all, it seems.

And rightly so...

DODGE executives are very excited about this, the Dodge Journey, which will replace the Chrysler Voyager later this year. Yes, despite that front end this is a compact-MPV, complete with seven seats, and Dodge say its distinctive in-your-face styling is going to succeed in just the same way the Chrysler 300C did. They even plan stealing Ford S-Max sales with it! Brave words indeed.

Think city car is back

And the other attractions...

PRETTY ladies sell pretty cars – it might be sexist but the motor shows have them for a reason...

10,000 miles of motoring for just £120 – now that’s got to be a figure that’ll get your customers thinking CAR DEALER did something at Geneva this year that we’ve never done before – drove a car. And it was the clearest demonstration of the green message yet, as the Think twoseater is completely electric.

Once a project that Ford canned, the Think is back in a big way. The current model will do around 100 miles, more than enough for city driving to and from work, before needing a recharge of around eight to 10 hours, simply by plugging it

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into a standard three-pin socket.

The cars, built in Norway, will be on sale in the UK before the end of the year. They’ll cost around £14,000 with a £100 a month battery lease fee – this scheme, with free replacement of a failed battery, overcomes the problem of the cell’s restricted life cycle that otherwise would have rendered the car worthless after three years. And while £14,000 sounds a lot of money, Think say 10,000 miles will cost just £120!

...even Ferrari had help...

Bentley bigs up its bio-fuel future

BENTLEY plans to be the leader in the luxury class with its environmental strategy and will start producing cars next year capable of running on bio-fuel.

Sales and marketing chief Stuart McCullough said that by 2012 its entire range of luxury vehicles will be able to run on the next generation of renewable fuels.

He said: ‘There are concerns about current biofuels and the conflict with food production but we are looking at the next generation.

‘By starting early we will be ready for it as and when it becomes available.’

New brand goes to Infiniti and beyond A NEW name takes to the road in the UK and Europe with the launch of Infiniti, Nissan’s upmarket brand unveiled at the show.

While Infiniti is to Nissan what Lexus is to Toyota, the product line-ups are not at all comparable, and in that sense the route to market and the way the brand is communicated will be significantly different, according to Jim Wright, vice-president of Infiniti Europe.

BYD-ing for UK sales success

...as did Skoda...

...not to mention Vauxhall

WHO are BYD? One of two Chinese manufacturers at the show, that’s who! And the one most likely yet to start selling its cars in the UK – possibly in little over a year.

Among the cars displayed on the BYD stand were gas-electric and completely electric models.

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dashboard

Big brash Vette

Burgess Just checking Jailed clockers remind us it’s still a major problem

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s HPI’s National Mileage Register now exceeds 125m mileages, it saddens me to learn that clocking is still a major threat to the industry. The Trading Standards Institute recently highlighted how the war against clocking still rages on, making the NMR check and investigation more important than ever.

And recently a trading standards investigation resulted in three men being jailed for 16 months each. The investigation, codenamed Operation Snowball, smashed a large-scale car clocking operation in north west London and revealed the true scale of the problem. The operation began when a member of the public complained that they had spent good money on a car that had been clocked ‘Dealers need from 245,000 miles to to close the 120,000. The investigation net on clockers found 83 clocked cars had been offered for sale over a before the six-month period. problem gets The scary thing is a total any worse.’ of six-and-a-half million miles had been deleted from the vehicles, giving the criminals an extra turnover of about £315,000. My jaw dropped to hear that one vehicle had a whopping 208,000 miles wiped from its clock – cocky doesn’t even cover it. The men pleaded guilty to conspiracy to defraud, and were sentenced to 16 months each. When you think that clocking costs motorists £100m a year, it’s clear that we need to show these criminals that the industry won’t tolerate their illegal activities.

I find it encouraging to see more manufacturers and retailers recognise the importance of HPI’s NMR check and Investigations. Recently Sytner, the UK’s leading retailer of prestige cars signed up to the service for three years, helping to offer customers confidence in the quality of its stock which includes the likes of Ferrari and Lexus.

Bentley Motors is the latest manufacturer to choose HPI for all its provenance checks, including mileage, once again illustrating the value of the NMR service.

However, I’d like to stress that it’s not just prestige cars that need to mind their miles – dealers need to close the net on clockers before the problem gets any worse.

Who is Daniel Burgess?

Daniel is automotive director of HPI. Find out more about HPI‘s services by logging on to www.hpi.co.uk or call 01722 422 422.

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Revamped Corvette C6 gets more power and more torque. Does that mean they might actually sell now?

YOU might not sell very many of them, or see a lot of them on the roads, but that won’t stop you wanting a go behind the wheel! This is the revamped Corvette C6 Coupe and packed under that long bonnet is a 6.2-litre V8 delivering a whopping 431bhp and 575Nm of torque.

Those power figures are up just over nine per cent on the last model and will propel the American muscle car on to a top speed of 186mph after covering the benchmark 60mph dash in 4.1 seconds! Impressive stuff.

The 2008 model is the sixth generation of the Corvette and comes in coupe or convertible body shapes. Unfortunately it’s only available in left-hand drive, but don’t let that put you, or your customers, off. You need to concentrate on the fact this is a real driver’s car with proper US brute force under the bonnet – if you’re fed up with Ferraris

it’s a serious rival, especially when you consider the ‘bargain’ £45,995 price tag for the coupe and £55,495 for the convertible.

The Vette comes packed with technology too – some aimed at keeping you out of a hedge, others at making the drive a little more pleasant. These gizmos include an advanced handling electronic stability control system that’ll keep you in a straight line.

To get those impressive power gains, Corvette has bored out the V8 block by 200cc. Power is still delivered via the rear axle through a short throw six-speed gearbox or there’s a six-speed paddle shift automatic transmission available too.

One thing’s for sure the bold styling is still the same – it might not be to everybody’s taste, but they’ll always be someone that loves that in-your-face American style and with the C6 it comes in spades.

First car is the deepest REMEMBER your first car? Now try and remember your first girlfriend – which do you hold more affection for in your heart? If it’s your first set of wheels, you’re not alone. A survey commissioned to remind us about this year’s British Motor Show has found our first car rates above our 18th birthday, first partner and kiss as the best memory from teenage years.

‘The bond goes so deep we remember our first car like old friends,’ said the researchers.

Bentely write-off sells for £68,000 ONE man’s misfortune is another’s gain – and that was clearly demonstrated with this Bentley.

Crashed with just 300 miles on the clock the £126,000 GTC model was a total write off.

However, that meant Bluecycle received lots of interest when they listed the damaged vehicle for sale. In just two hours, bids had reached the estimated sale price of £42,000 and the winning bid was an impressive £67,520.

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Firm gives dealer products a rethink Cardif Pinnacle’s Allan Lewis has given the firm’s products a total revamp for the motor trade PRODUCTS customers will want to buy and dealers will want to promote – that’s the message from Cardif Pinnacle after completely revamping its range.

Rather than promote the same old policies, general sales manager Allan Lewis decided that a company restructuring was a superb opportunity for a whole new outlook. ‘Payment protection insurance still has a vital part to play with responsible dealers that promote finance and the latest debt statistics are testament to this belief,’ explained Allan.

He was referring to news that currently 8.2m UK adults are in serious debt, 2.1m struggle with repayments and 2.1m people are permanently overdrawn.

The research was carried out by Credit Action at the end of 2007 and also revealed a quarter of working Brits will be refused loans, mortgages and credit cards by 2011 as debts mount.

This research led to Allan and his team locking themselves away in the Cardif

Tew Net gains Pinnacle offices with the objective of totally rejuvenating the firm’s offerings.

‘Confidence in the products has suffered in recent times affecting both dealers and their customers,’ explained Allan.

‘We decided we needed to take a fresh look at payment protection policies and question every single clause and exclusion and ask is this necessary and what is it trying to achieve?

‘Policy wordings have evolved over many years and the time was right to start afresh and design a policy for the motor market in 2008 and beyond.’

Allan has recruited two new members to the Cardif Pinnacle team – Mark Pain and Mike Clarke – and they’ll be contacting dealers soon about new payment protection policies, return to invoice, finance gap, roadside assistance, customer or dealer insured warranties and MOT cover.

For further details please contact Allan Lewis on 07900 891224 or Mark Pain on 07768 121840.

Volvo’s sales charge VOLVO’s new crossover XC60 will hit UK showrooms in October and is expected to boost the Swedish car company’s sales by 4,000 in 2009.

This will add to a momentum which started at the beginning January after two thin sales years for Volvo.

UK sales director Nick Connor said: ‘We were not where we wanted to be in 2006 or 2007, but we have done a lot of work within the franchise and we have focused on driving up residual values.’

Repositioning the brand and improving re-sale values have made Volvos a better proposition in the showroom and Connor said that this was being reflected by increased sales since the start of this year.

‘In January sales were seven per cent up over the same month last year and this continued through

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February. We hope to maintain that growth through the year to achieve between 32,000 and 33,000 sales – around 10 per cent ahead of 2007.’

The new XC60 – pictured above – will add just a few hundred in the last quarter of the year, but Connor expects to sell 4,000 in 2009.

Why do dealers neglect the pictures on their website?

O

ver the last year we at Codeweavers have revolutionised the way dealers sell finance through their websites, as you can read in this issue (p33). But what’s the point in adding such features if the site itself is a turn-off to the customer? Sound familiar? Don’t panic – adding appeal to your virtual showroom is not rocket science and doesn’t cost big money.

My big bugbear is poor photographs. Driving past a dealer in the spring sunshine, I will see a perfectly placed line-up of spotlessly clean cars, all catching the eye, screaming ‘Come and look’. Yet I go on the same dealer’s website, and I find a grotty single picture of each car for sale, sometimes so over‘Why not train exposed you can’t even see what the car is. I’ve someone up to seen pictures of dirty cars, be an “e-valeter” cars plastered with for sale plates, even cars with responsible for people sitting in them. the look of your They all shout we can’t be bothered and they certainly website pictures?’ don’t say buy me.

Yet producing top quality pictures for your site is not at all difficult. Today’s digital technology in even the most basic point-and-shoot cameras produce excellent results, so all you need is a little common sense behind the camera.

You spend lots of cash ensuring your valeters do the best job on your cars, so why not train someone up to be an ‘e-valeter’, responsible for the look of your website pictures? One of your staff might already enjoy photography as a hobby, but if not, send them on a basic course. You’ll spend a few hundred pounds at most, and only once, and you will get the money back in your first couple of sales.

Do the basics – for example make sure that every picture is taken from the same angle, just as the cars are on your forecourt. But do more too. Use extra pictures and consider adding video – it’s not as hard to do as you might think, and it’s the next big thing on the net (two years ago had you heard of YouTube?).

A pristine line-up on the forecourt might bring 10 people a day into your showroom. A pristine line-up on your website could bring in hundreds – even thousands…

Who is James Tew? James Tew is managing director of Codeweavers.

Learn more about how he can help you at www.codeweavers.net or call 0870 443 0888.

15 7/3/08 14:11:14

dashboard

Leaders of the pack Innovative website offers leads for new car buyers via pay-as-you-go

Henstock Auction stations There’s no need to hit the panic button just yet

A

number of market commentators have thrown their hat into the ring regarding the effect of the credit crunch on the used car market this year. Generally, people seem cautious although a decent January has let some optimism shine through.

Our experience on the floor is that professional buyers are generally pragmatic about their prospects for 2008 – they know the market has strength in depth and that motorists will still be buying used cars this year.

BCA’s annual Used Car Market Report has shown a consistently growing market share for retail dealers – and our most recent figures show a record £25.6bn was spent at dealers as motorists purchased over four million ‘Sourcing the used cars. Seventy per cent right stock, at a of car buyers choose to buy good price and a used car rather than a in a timely new one, with price, value for money and avoiding fashion will depreciation being the be absolutely main benefits perceived by crucial this year.’ motorists. And the most recently purchased used car is the chief means of transport in nearly four out of five cases and acts as the second car for 17 per cent of families. There was huge demand for used cars in recent years and we expect that to be repeated in 2008.

There’s certainly nothing to be gained by pressing the panic button, but sourcing the right stock at a good price and in a timely fashion will be crucial this year. Dealers are best placed to know their customer base and what sort of cars they want to buy. And with the new plate change likely to stimulate additional volumes of business from fleet, lease and dealer sources, buyers will have even more choice later in the spring.

In the three to five-year-old sector, where volumes are much larger, condition becomes very important. The best-presented cars will continue to make the strongest values, but low spec, tatty vehicles are likely to struggle to attract the buyers. Of course, at the end of the chain is the consumer – and they’ll be looking for the best car at the best possible price!

CLEVER website BuyYourCar. co.uk has launched a unique new service that lets dealers purchase new car leads via a pay-as-you-go system.

The innovative www. newcarleads.co.uk gives car Dealers buy customer dealers access to a real-time leads at www.newcarleads.co.uk system where they can view leads as they arrive. Traders customers and dealers on both levels. then pick and choose between the different Buyers who send in a quote request leads available. There’s even the option to via BuyYourCar.co.uk have to input their buy leads exclusively, or on a shared basis personal details as well as when they want for a discounted price. to change, their part exchange offering and The system was the brainchild of how they plan to pay for the new car.

BuyYourCar managing director Dave Long Dealers use the system in a number of and is aimed at traders both large and ways. Some just want quality leads while small. ‘We wanted to create a system that others are using it to win back local business suited all dealers,’ he said. ‘Those only that could be otherwise lost on the internet. interested in a single manufacturer within ‘Not only is the system easy to use and a specific region can select the leads they very inexpensive, but it actually works,’ said want to purchase and there’s no obligation Linda Sutton of Green Light Vehicles. ‘We for them to buy more than they need.’ are currently enjoying a very impressive conThe system was refined with feedback version rate. It certainly complements our from dealers to get the system right. For the existing sales and marketing channels.’ system to be successful it had to work for To find out more call 0845 644 8220.

Supercharged Caterham takes fight to Bugatti JUST when you thought Caterhams couldn’t get any more extreme, along comes this 500bhp super-charged monster! The Caterham RST-V8 is produced in association with RS Performance and features – you guessed it – a V8 under the bonnet.

The 2.4-litre unit boasts 40 valves and a supercharger that’ll propel it to 60mph in a breathtaking sub-three seconds. The RST-V8 comes with a six-speed sequential gearbox and can crack 150mph.

Thankfully, there’s traction control to keep all that power under control and launch control to help drivers get it to the ground.

The whole car weighs in at just 90kg with full running gear and has been 16 years in the making. Developed by Russell Savory’s RS Performance – an exclusive tuner and engineering house – the 2.4-litre model delivers an incredible 1,000bhp per tonne. That’s more than double a Bugatti Veyron!

Seats are made from Kevlar and the cockpit is carbon fibre to keep weight at an absolute minimum.

If you fancy the ultimate Caterham you’ll have to have deep pockets and a bit of patience – the new model will set you back £115,000 and there’s currently a 12-week waiting list. Only eight will be built.

Who is Simon Henstock?

Simon is UK network operations director for BCA. Find out more at www.bca-europe.com or call 0845 600 6644.

16 CarDealerIss1.indd 16

CarDealer

7/3/08 14:11:19

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• UK-wide network of 40+ business managers keeping you up-to-date with new products and services • UK-based call centre ensures that all your customer enquires and claims are handled efficiently and professionally • Product training for your staff at our training centre or on-site • Efficient IT and administrative backroom systems to facilitate the sale and management of policies Find out more about becoming an AA Warranty dealer today.

Call Paul Hanna on 0114 263 7769 or visit www.aawarranty.co.uk/dealers for more information AA Warranty is a trademark of The Automobile Association Limited and is used with their permission under licence to Motorway Direct Plc. AA Warranty is provided by AA Mechanical Insurance Services Limited, an appointed representative of Motorway Direct Plc who are authorised and regulated by the Financial Services Authority, authorisation number 311741.

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Warranty CarDealerIss1.indd 17

Call 0114 263 7769 7/3/08 14:11:20

forecourt Mitsubishi EVo X £27,499

X

The all-new Mitsubishi Evo X has been a long time coming. But now it’s here and according to STEWART JAMES it’s been worth the wait

appeal

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F

OUR years – that’s how long we’ve waited for the latest instalment of the Evo story.

At one time new rally replica versions of Mitsubishi’s Lancer, boasting dinner table rear wings and power levels to justify such appendages, would appear every 18 months or so – so why the wait this time?

The reason is simple – Mitsubishi has produced an all-new version of the Lancer, on which the Evo relies on for its DNA. Drive the ordinary Lancer first and you’ll emerge with a

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worried frown, because in stock form the new model is a spectacularly dull car. Thankfully in Evo form it is anything but.

Unlike its deadly rival the Subaru Impreza, which in its equally new model has changed from a four-door saloon to a five-door hatch, the new Lancer retains the saloon layout of its predecessors, but that’s about all. Arguably it’s the better looking of the two – but then that’s a debate that’ll rage on and on.

Looks are fine, but with the Evo it has always

been about performance.

And to discover just how the new car stacked up, Car Dealer was despatched to Prodrive to try the new Evo on track. The Midlands site is ironically associated with Subaru and its WRC team, so staging the Evo X launch there was quite a coup.

So what’s under the bonnet? Well, it’s an all-new four-cylinder 2-litre turbo-charged engine, with an aluminium block saving some 12 kilos in weight over its predecessor. >

19 7/3/08 14:11:24

forecourt It still manages to offer more power and more torque, the latter coming in further down the rev range. In stock form, installed within the FQ-300, that power is around 290 horses. But being an Evo, there are of course muscled-up variants: the 324bhp FQ-330 and the FQ-360 with some 353 horses on tap.

All are matched to a five-speed manual gearbox and Mitsubishi’s renowned all-wheeldrive chassis, which itself has been significantly improved. Dubbed S-AWC it now boasts loads of clever electronics all designed to get you out of trouble no matter how silly you are.

Although it pains us to say it, the most fun version of the Evo X is not the one with the most power, but the one with the least. And surprisngly it’s not the one with the manual gearbox either, but the one with a sequential semi-auto unit called SST. SST stands for Sports Shift Transmission, and it’s based around two clutches (rather like Audi’s DSG unit). In semi-automatic form its six speeds can be selected, almost instantly, using paddles on the steering wheel.

Now I know everyone says that manual shifting is best for sporty performance, but they are wrong. If this is the case why do F1 drivers use gearboxes like these?

Left to its own devices the SST changes the ratios more quickly and more effectively than you ever could. You can concentrate on finding the quickest line while the engine and gearbox looks after itself.

The SST offers three modes. ‘Normal’ is, as it suggests, designed for everyday driving, the school run and the like – and remember with four doors and a big boot the Evo could be

‘The Super Sport mode was great for the high speed track, serving up an intoxicating combination of accleration, pure speed and grip.’ considered a practical family car. In this mode, by the way, it returns fuel economy some 10 per cent better than a conventional automatic.

In Sport mode, which can be instantly selected at any speed, the system shifts faster, higher up the rev range.

And finally there is Super Sport mode, which can only be selected when stationary and is strictly for the track. In this mode the box simply won’t change up until you hit that red line on the rev counter.

Super Sport was great for the high speed track, serving up an intoxicating combination of acceleration, pure speed and grip. But on the sinuous

handling circuit, basically a good go-karting track, it proved a nightmare, a change to Sport instantly making for a much better-behaved car that you could concentrate on cornering at ever more suicidal speeds.

And boy does it corner, the grip levels in this new Evo are nothing short of amazing.

We could go on further about the other impressive bits of the new Mitsubishi Evo X. Like the brilliant safety package, the creature comforts and the stonking Rockford Fosgate sound system – but we won’t. What you really wanted to know is whether it’s better than the last one.

And it is.

Mitsubishi EVO X Price: £27,499 Engine: 2.0-litre, turbo Power: 290bhp, 407Nm 0-60mph: 4.7s Max: 155mph Ins: Group 19

Mitsubishi have done it again – the Evo X is a stonking car. A super engine, clever semi-auto gearbox and astonishing pace combine to make the X one extreme machine that’ll have buyers queuing around the block.

20 CarDealerIss1.indd 20

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Lotus Europa S Price: £35,445 Engine: 2.0-litre, turbo Power: 222bhp, 300Nm 0-60mph: 4.9s Max: 147mph Ins: Group 20

Lotus gives the Europa an upgrade.

James Baggott finds out what’s new

Y

ou want a Lotus, but you don’t want raw? Go buy a softies car then. I’m not saying Lotus dealers are that blunt, but chances are salesman were probably thinking it when someone came in asking for a Lotus-lite. Then along came the Europa, the so-called easy going model of the range. Not as frantic as the Elise or as downright mental as the Exige, but slightly more sedate; slightly more accommodating for the daily driver.

Thing is, the Europa hasn’t exactly gone down a storm. Some buyers might want a Lotus with a little less flavour – which is why the Europa S was conceived in the first place – so why then now add this new Luxury Touring Pack and Aftermarket Performance Upgrade Kit? Surely up-rating the power defeats the object of the car’s conception altogether?

This performance pack increases power to 222bhp, up from 197bhp, and torque rises 28Nm to 300. This tweaking is enough to lop just under a second off its 0-60mph time – now 4.9s instead of the standard version’s 5.6s. Top speed rises too, but by a rather insignificant 4mph to 147mph.

This fettling is certainly noticeable – and considering it’s merely down to some engine remapping it’s very impressive. The Europa feels just as lively as it’s frantic siblings and sounds utterly sublime. The turbocharger sucks and hisses as you’re on and off the power and the fact the engine’s mounted just behind the rear seats only serves to enhance

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the soundtrack. On a sinewy country B road, the Lotus really comes alive. The steering that’s Dawn French heavy in town, becomes taught and full of feedback; the turbocharger constantly spooled and ready to fire you forwards and the car simply devours straights.

The Europa really is a great machine to drive – and we’d argue more fun than the mental Exige S, which can be just a bit too tiring. Lotus say the Europa’s a GT – but that’s not quite true. You wouldn’t want to do too many miles in it. Trust us, we tried and have the chiropody appointment to prove it. Those seats are hard and you’ll soon have numb body parts. This is a sportscar, plain and simple.

Lotus might be trying to make things a little more pleasant with that aforementioned touring pack, but we can’t help thinking it’s

a bit OTT. Who needs an interior this small covered in four (yes four) hides? We haven’t seen this much leather since the Wednesday bikers’ meet at the local pub.

Also added for the £1,250 cost is a wilton carpet, walnut and tulip gearknob, tinted windows and silver grilles. It’s all very nice, but do buyers really want it?

Some what disappointing were the squeaks and rattles our test car had. Granted it had clocked up a fair few miles in the hands of some less than forgiving journos, but the rattly window and squeaky dash drove us mad on one 500-mile day.

Even more frustrating was the fact the 12v cigar lighter socket was ever so slightly oversized, so every time we crashed over another bump, or at the merest whiff of acceleration, it would spit our sat nav’s power cable out like a spoilt child. Very annoying. But despite these gripes, we warmed to the Europa. It might be filling a gap in the Lotus range that some purists believe doesn’t need filling, but it’s actually a very well set-up and exciting car to drive – just don’t go thinking it can be used as a daily runabout. It can’t.

21 7/3/08 14:11:36

Car Dealer Magazine:A4

29/2/08

15:16

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cult cars forecourt

BMW should start worrying – turns out the 500 is a real rival to the MINI

R

etro – it’s all very fashionable. More and more people have this sudden urge to go back to the 1960s, to flower power, mini skirts and of course the Mini. And BMW has for several years now been reaping full benefit, thanks to its re-invention of the Mini. Problem is, today’s MINI is no real relation to the original at all. Its retro-look might make it a fashion must-have but it certainly isn’t small – unless you are sitting in the back.

So for fashionistas living in the city, where every parking space merits a pitched battle, there is still a need for a seriously cool, small car. Now it is here, and while previous perceived MINI-rivals have tried and failed (including Smart’s laughable effort the Forfour – remember that?), the Fiat 500 is a car that BMW’s bean counters need to take notice of.

Like the MINI, the 500 recalls a 1960s fashion hit which quickly gained iconic status. And Fiat GB expects its new baby to achieve similar status, as you’ll guess by the way it’s being marketed – a launch on the London Eye, exactly 500 hours into the new year, and TV ads clearly set to snare bright young things.

The new 500, however, comes with other advantages. The hard-nosed members of the motoring media recently declared it European Car of the Year. Fiat has won this title some nine times, and occasionally raised eyebrows

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as their model triumphed against better opposition. But this time there are no doubts that the Fiat 500 deserves the award.

Like the MINI, there are loads of personalisation options – apparently there are 500,000 different ways you can have your Fiat 500.

Sounds a bit much, but just goes to show the lengths people will go to get something unique.

The interior looks good – there’s a big chunk of body-coloured metal ahead of the driver, while the vital info on road and engine speed is contained within one of those big combined dials. Vitally, however, the Fiat is also a true small car. On both a very wet launch event and a week thrashing through the Welsh countryside, Car Dealer has had

plenty of opportunity to compare the 500 with its target, as numerous MINIs pulled up alongside us at traffic lights, the Fiat concealing itself neatly in its rival’s shadow.

Despite all those options, the basic premise of the Fiat 500 is simple with nine basic models courtesy of three engines and three trim levels named Pop, Lounge and Sport. Even the entry-level 1.2 petrol of 69bhp produces a perfectly competent car with impressive economy and emissions.

Of course the big 1.4-litre 100bhp petrol engine should provide the most pace, and on paper it does, with a 10.3 second 0-60mph sprint time, yet we found it a little, well dull.

The 75bhp 1.3-litre diesel, while taking 12.2 seconds to reach that 60mph marker, felt much more spirited. And then Fiat pulls its masterstroke: this chic little machine can be had from just £7,900! That’s distinctly cheaper than the MINI, making the 500 the biggest rival yet to the German car from Oxford.

Fiat 500 Price: £7,900 Engine: 1.2-litre, petrol Power: 69bhp, 101Nm 0-60mph: 12.9s Max: 99mph Ins: Group 2

23 7/3/08 14:11:41

AT045

forecourt

Sport’s day

B

Y

W re to a h th

T b

A diesel sportscar? Is Alfa mad?

Not if the Brera’s anything to go by...

T

o say a car looks a million lire would hardly be a compliment. Anyway, it would have to be Euros now. But to say the Brera looked the traditional million dollars would hardly be doing it justice either.

We’re talking Italian thoroughbred here, not the typical tack that comes out of much of the American automotive industry.

Whatever superlative you use, there’s no getting away from the fact that the Alfa Romeo Brera looks fantastic whether it’s moving or standing still. So why then have they put a diesel under the bonnet?

It’s a good point – many will question the value of having a diesel in a sportscar but the latest generation derv-drinkers, especially

Alfa Romeo Brera Price: £27,500 Engine: 2.4-litre, diesel Power: 200bhp, 400Nm 0-60mph: 8.1s Max: 142mph Ins: Group 16

24 CarDealerIss1.indd 24

those from Alfa’s parent, Fiat, just invite praise. This particular engine is a 2.4-litre unit giving 200bhp and 400Nm of torque. When you demand urge from this car it’s like being hit in the kidneys with a sledgehammer, albeit a rubber one as you only feel the huge shove in the back, not the violence of the impact.

This Alfa seems to be the perfect blend of everything, with the most gorgeous styling partnered with a terrific engine.

And if you really can’t stand the thought of a diesel sports car then you have the choice of 2.2-litre four cylinder and 3.2 litre V6 petrol engines instead, the latter also coming with four-wheel-drive.

In 2.2-litre or diesel form, the drive is

through the front wheels but the car is sufficiently well engineered that the massive dose of torque available on demand does not prejudice the steering. You don’t find yourself fighting with the wheel, as you would have done with powerful front wheel drive cars in days gone by.

While the 2.2-litre petrol puts out 185bhp and the 3.2-litre 260bhp, neither of them can get anywhere near the diesel for torque and it’s this that gives the car real performance in the gears. In terms of top speed, the diesel manages 142mph. It also manages 0-60mph in 7.9 seconds, nowhere near as good as the slightly disappointing 6.8 seconds of the 3.2 but trumping the 2.2’s 8.6s.

Where it scores, of course, is in its economical running – but it’s not as good as Alfa’s figures suggest in our experience. Alfa quotes a combined figure of 41.5mpg, but the best we achieved with the test car was 36mpg on a run. For the rest of the time it was doing 33mpg but that’s considerably better than you would get with either of the petrol cars, especially as we weren’t hanging about...

Buying the diesel Brera will set you back £26,400 but probably better value is the SV version at £27,500 (tested here). It adds panoramic glass roof, electric folding and heated rear view mirrors, brushed aluminium centre console and leather upholstery.

All you need now is to convince your customers that diesels can cut it with petrols in the sportscar stakes!

CarDealer

7/3/08 14:11:46

AC Al As Au Be BM Br Bu Ch Ch Ci Cl Da Da Do Fe Fia Fo H H H Isu Iv Ja Je Ki La La LD Le Lo M

AT045 A4 Car Dealer Ad

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7/3/08 14:11:48 26/2/08 14:28:51

8 14:28:51

cult cars

Audi R8

Q

UITE why the sheer brilliance of the Audi R8 took the world by such surprise is a mystery. We should have saw it coming. For years the four-ringed marque had been steadily clawing its way up the corporate car park, stealing sales from German rivals Mercedes and BMW. Then, last year, they hit us with the ultimate: a supercar to take the fight to its other major competitior – Porsche. A few years ago the thought of an Audi seriously challenging the dominance of the 911 would have had dealers chuckling into the coffee. But not any more.

A succession of road test victories in all the major motoring magazines, an order book that stretches years, not months, into the future and a car hailed as one of the all time greats has catapulted the R8 into the stratosphere of success.

So what’s its secret? Usability. This is a car you can get in and drive every day, yet if you really want to leave you brain at

home it can play with the big boys. Many describe the Audi as a grown-up TT, and they’re right. It is just as simple to drive as its sporty little brother yet this one’s got a mid-mounted 4.2-litre V8 tucked behind the rear seats.

And boy what an engine it is. The FSI unit pumps out a fearsome 420bhp and 430Nm of torque propelling the silver bullet to 60mph in under five seconds. And the noise that accompanies the blistering pace is worth every one of those £82,000 pounds (and that’s before you add extras).

Inside it’s as comfortable as any one of Audi’s superb saloons. Granted, the driving position might be a bit more extreme, but it’s in no way uncomfortable and the controls for all the kit are sensibly placed. The open gate manual gearbox is a pleasure to use – making that satisfying click as you swap cogs – or you could go for the paddle-shift auto. We prefer the manual and chances are so will those

future classic car hunters.

Talking of future classic status, the R8 has such a cult following already it’s hard to believe the car could become anything less. Add in the fact the sportscar is inspired by Audi’s dominating Le Mans 24 Heures racers and you’ve got the allimportant motorsport connection too.

What really makes the R8 special is the sense of occasion it creates. Ok, so those LED lights that wrap around the front headlamps might not be that uncommon in the future, but for now they’re the most eye-catching thing on the road, and that bold side slab of grey on the flanks is truly a bold design statement.

Demand is understandably high and shows no signs of diminishing. Chances are, if you do get hold of an R8 you’ll be paying a premium for it. And that’s undoubtedly a premium worth paying if you’re in the market for a future classic.

James Baggott

Audi R8

Price: £82,025 Engine: 4.2-litre, V8 FSI Power: 420bhp, 430Nm 0-60mph: 4.6s Max: 187mph Now get one with Bridford: Option one: £15,000 deposit, 24 x £449 per month, final payment Option two: £7,500 deposit, 48 x £999 per month, final payment

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27

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7/3/08 14:11:58

Direct Lenders A4 Ad 0208

11/2/08

15:57

Page 1

When the future comes - you’ll find us there

Giving you the knowledge

5 facts the direct lenders don’t want you to know All the ammunition you need to stop direct lenders from stealing your finance sales is now contained in a handy booklet.

When a customer tells you they have already arranged finance, you’ll be able to give them five very good reasons why they should stop and think if they really have made the right choice.

At Black Horse we’re not all talk, we’re actually doing something to help you in a practical way. This is the first of many initiatives to help you fight back. Watch this space.

Let the facts speak for themselves If you'd like an electronic copy of this invaluable booklet, call 0131 311 2127 or email Fiona Robertson on thefacts@blackhorse.co.uk

CarDealerIss1.indd 30

7/3/08 14:12:31

F&Icult agenda cars

...in association with Auto Protect

Are you missing out?

Desira Motor Group tells Car Dealer boosting your profits with finance and insurance products is easily achievable

M

OTOR dealers are missing out on finance and insurance sales that could offer additional revenue of up to 40 per cent, according to new research.

Investigations by Auto Protect – the fastest growing brand in this market – have found car dealers could seriously increase their bottom line if they investigate the benefits of F&I products.

Currently, many dealers are tied into either their manufacturers’ programme or their finance providers’ products which limits profit margins, as generally both are taking a cut themselves. By choosing to use a firm like Auto Protect instead, profit margins can rocket.

One firm that has already got Auto Protect on board is the Desira Motor Group – and their praise for the products couldn’t be higher.

‘These products have brought us an overall percentage sales uplift increase of around 12 per cent, which amounts to a 170 per cent increase in our business as a direct result of these products,’ explained group retail manager Richard Brown.

‘The products have done exceptionally well, riding off the back of a new controlled sales process that focuses on the F&I hooks and detailed qualification, coupled with the comprehensive one-to-one training and management support that AutoProtect provides.

‘This ensures that all the staff are fully up to speed with FSA requirements and are fully trained through Auto Protect’s new e-learning programme. This has led to us increasing our penetration and income from F&I products and we are confident that there is still room to improve with Auto Protect’s continued support.’

Project1:Layout 1

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Desira Motor Group has enjoyed a profits boost thanks to Auto Protect’s products

‘Auto Protect staff actively look to drive your business forward whether it directly benefits them or not.’

Desira Group holds franchises for Alfa Romeo, Citroen, Fiat, Mitsubishi and Nissan across Norfolk, Suffolk and north London. And since May, last year they have been using Auto Protect’s products to boost revenue.

Desira uses Auto Protect’s Return to Invoice, mechanical breakdown, tyre and MOT insurance as well as key protection products at its nine service centres and 14 showrooms.

Andrew Richards, chief executive officer of Auto Protect, is proud of the support his company has given Desira Group.

‘We pride ourselves on providing all the tools and administration back up that dealers need to ensure they are FSA compliant,’ explained Andrew. ‘Our innovative insurance products have been developed after listening to the needs of both dealers and car buyers and are all supported by a dedicated claims team which is one of the best in the industry.’

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The Logical Choice CarDealerIss1.indd 31

Desira’s Richard Brown adds: ‘Auto Protect offers tremendous levels of hands-on support through their e-learning, comprehensive on-site training and excellent account management and support. On top of all this, we know that if we need a hand and our account manager is unavailable, we can contact head office and our query will be dealt with quickly and efficiently.

‘All Auto Protect staff are very friendly and efficient and a joy to deal with. They actively look to drive your business forward, whether it directly benefits them or not.’

Richard believes that the automotive industry has changed immensely and it is not the simple one it used to be, resulting in other dealerships struggling to sell F&I products successfully.

‘The days of getting by with the gift of the gab and quick wit has gone and now it is much more process driven,’ he explained. ‘Many dealers have tended to bury their heads in the sand and hope that the FSA goes away. Many dealers believe the potential gold mine from the F&I products will naturally flood in by employing top class sales executives, rather then investing in the ones they already have.

‘I think dealers who embrace the sale of the F&I products and get support from the likes of Auto Protect will be around for years to come.’

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www.autoprotect.net 7/3/08 14:12:34

The fastest way to make your stock more affordable A full range of motor finance calculations ready to be integrated into your website and vehicle stock. This unique web service also includes electronic proposal forms for a complete online finance solution, virtually out of the box.

- Easy to integrate into your existing web stock module - Calculations available from many of the UK’s leading finance companies - HP, Motor loan, Lease Purchase and PCP quotations based on your chosen sell out price - Proposal forms for all customer types which integrate into your preferred lenders systems - Lucro – Part of the service that gives you access to our unique multi-lender point of sale system - Pre-built solutions from both Codeweavers and our media partners

w: www.codeweavers.net/yourcarloan e: enquiries@codeweavers.net t: 0870 443 0888 f: 0870 443 0889

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7/3/08 14:12:40

feature

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onder eb

Codeweavers is blazing a trail on the internet for car dealers, reports Stewart James

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>> 7/3/08 14:12:47

feature A

re you a car dealer watching money walk out of the door? After each sale are you left counting the loose change that the profit on the car itself realises, having seen some internet site rob you of the meaty cash generators like the finance deal and insurance?

The good news is, you’re are not alone. In fact the Finance and Leasing Authority is so concerned at the plummeting figures in point-of-sale finance provision that it made the issue the subject of a keynote speech at its national conference last year.

The culprit was easily identified – the internet. Car buying on the internet has mushroomed. The latest figures from CAP Gemini show that four out of five customers are now actively using the internet as part of their buying process. Even more tellingly, one in five – 20 per cent of customers – are now more than happy to buy their car online and just two years ago that figure was only two per cent.

So the customer, if they cannot find acceptable answers to their finance and insurance queries from the dealer, will simply go off and get what they need on the net. The FLA’s answer to the problem is to improve the quality of financial advice available in showrooms, and as a result it has set up an initiative called SAF. Basically it’s designed to raise the profile of dealer finance, to show that the person you deal with in the showroom knows exactly what they’re talking about with regard to finance. To achieve such accreditation, a sales executive has to complete a 45-minute online questionnaire to prove their finance knowledge. While this is a laudable initiative from the FLA, it only deals with part of the issue.

Thanks to the net, by the time the customer arrives at the showroom they often already have all their answers – if they even bother with the showroom at all. These clients need to be snapped up far earlier on the dealer’s website, and then kept there. And that is where Codeweavers – led by James Tew, pictured on these pages – comes in.

It’s been quite a year for the firm. Since the company launched YourCarLoan, a direct-to-customer web apparatus that calculates finance needs and insurance details, thousands of dealers have incorporated it directly into their websites. And these dealers have seen immediate benefits.

Now, as Codeweavers’ sales and marketing director Martin Hill explains, YourCarLoan is perfectly placed to sit alongside SAF accreditation, giving dealers a complete armoury to keep all the profits from a car sale in-house.

‘The internet has totally changed the way people buy cars,’ Martin tells Car Dealer. ‘Today the average person looking for a new car will decide on the model they want, and then they will very likely go onto the nearest dealer’s website. Perhaps they want an Audi A4 and using the net they will soon find an example in the right colour, with the right specification, the 2-litre diesel engine they want, perhaps with leather trim. Then they will need to know two things – can they afford it and can they insure it?’

Martin contends that this is where the dealer will often lose out: ‘If the customer cannot answer their finance or insurance queries on the dealer’s website, they will simply leave that site and look up the info they need on a price comparison site such

34 CarDealerIss1.indd 34

‘The most vital part of the software is it keeps the customer on the dealer’s website. It makes the site more sticky.’

The Codeweavers’ software is simple and easy to use as moneysupermarket.com.

‘At a keystroke the dealer has lost control of that customer, and it’s quite possible that they won’t come back, particularly considering that the financial comparison sites in answering customers’ questions will then tout them towards online car sales sites such as Fish4Cars.’

YourCarLoan neatly solves the problem. It’s a totally interactive process that not only answers the customers’ finance questions, but also offers far greater versatility than the typical manufacturer finance deals found on a stock dealer website.

Martin explains: ‘A typical manufacturer finance plan might offer 2.9 per cent over 24 months with a £4,000 deposit. But what if the customer doesn’t quite have £4,000 to spend on their deposit? They will immediately abandon the manufacturer, and therefore the dealer site, to go elsewhere for finance. YourCarLoan is far more versatile than that – basically if customers don’t fit, they can then click to construct their own bespoke deal.’ >

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7/3/08 14:12:52

More dealers join the fold PICTURED here with James Tew is Darren Holdcroft (right), MD of the Holdcroft Group, a Stoke-on-Trent based dealer that is currently considering adding the YourCarLoan solution to its websites.

Holdcroft is typical of the kind of outlet that YourCarLoan can greatly

CarDealer

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benefit. The company now owns several outlets representing several major brand names across North Staffordshire and Cheshire.

Equally the group offers a large used car parc, with its websites playing a crucial role in the selling process, and each already include a used car search function.

35 7/3/08 14:12:55

2EPUTATION IS EVERYTHING 7E´VE MADE IT OUR BUSINESS TO HELP PROTECT YOURS

N )NDUSTRY PIONEER ESTABLISHED IN N 3TILL ³.UMBER ´ VEHICLE HISTORY CHECKING COMPANY WITHIN THE TRADE N 4HE CHOICE FOR MANY HIGH PROFILE DEALER GROUPS N (IGHLY ACCURATE AND COMPREHENSIVE INFORMATION HELPING PROTECT YOUR REPUTATION N 2ELATIONSHIPS WITH ALL MAIN INDUSTRIAL BODIES TO ENSURE THE HIGHEST DATA QUALITY IS MAINTAINED N 4HE .ATIONAL -ILEAGE 2EGISTER OVER MILLION MILEAGE READINGS N (0) %XCHANGE THE FREE PORTAL ENABLING YOU TO PUBLISH YOUR STOCK TO A VARIETY OF ONLINE SITES AT THE PUSH OF A BUTTON N $RIVEAWAY )NSURANCE $AYS COMPREHENSIVE INSURANCE FOR YOUR CUSTOMERS

THE GENUINE ARTICLE .EXT TIME YOU DO A DEAL MAKE SURE YOU´RE DEALING WITH THE GENUINE ARTICLE

#ONTACT US ON OR E MAIL HPIDIRECT HPI CO UK #ALLS WILL BE CHARGED AT LOCAL RATE AND MAY BE RECORDED AND OR MONITORED )NSURER´S STANDARD ACCEPTANCE CRITERIA APPLY (0) AND THE (0) LOGO ARE REGISTERED TRADEMARKS OF (0) ,IMITED

CarDealerIss1.indd 36

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UK

feature There are many other advantages. Unlike a financial comparison site, where a customer inputting their details is offered a quote on a single car, just one set of inputted information lets YourCarLoan provide immediate quotes on every car listed on a dealer’s site.

And Martin adds that the software also takes account of motoring-specific information.

‘Residual values is an obvious one – your money supermarket site can’t offer information on such aspects because they are not a specialist provider, they offer finance for all sorts of things. But of course your dealer is a specialist.’

Martin contends, however, that the most vital aspect of YourCarLoan is that it keeps the customer on the dealer’s site. The software makes such sites more ‘sticky’, more relevant.

‘Such websites have not changed for years, but now with this software they can offer far more to the customer, and vitally, make a dealer’s stock appear more affordable and therefore more likely to sell,’ he added.

Martin believes YourCarLoan very much compliments the FLA’s initiative. ‘Those customers that want to visit their dealer will be put at ease by knowing they are dealing with an SAFaccredited sales executive. But many customers don’t like face-to-face dealing, some can find it quite un-nerving, and so they prefer to do the whole process online, where they can do as many calculations as they like – that’s where YourCarLoan comes in.’

The software also greatly shortcuts the buying process. Having got their quote online without leaving the dealer’s site, the customer can then actually propose themselves online and obtain pre-approval of their finance without going near the showroom. ‘Instead of having to spend a great deal of effort on the sales proc-

Dealers can sell insurance online too...

IN A YEAR of remarkable growth one of the greatest highlights for Codeweavers has been the success of the insurance calculator that was recently added to the YourCarLoan package.

So revolutionary is this facility that it recently won the Broker Innovation of the Year Award presented by top industry newspaper The Insurance Times, beating off such household names as AXA

in the process – something Martin Hill is extremely proud of.

The calculator, created via a tie-up with broker Lloyd Latchford, is another essential tool in keeping the customer on the dealer’s website. No longer does a customer have to go off to confused.com or a similar site and spend 10 minutes finding an insurance quote.

‘The shortened question

ess, the dealer is sent an email informing them when they should deliver the sold vehicle to their customer. It works very, very well, and we know that because dealers are telling us so.’

And the number of dealers using the system is growing. The software only launched in the last year, but its progress has been nothing short of remarkable. Already more than 8,000 dealers are using YourCarLoan, a key player being the Auto Exposure Group, part of the Daily Mail, which has 1,200 dealers on its books. However, in July even this will be overshadowed when Auto Trader starts using the system, bringing onboard another 4,800 dealers.

This expansion has been greatly aided by the mushrooming number of finance providers linked into YourCarLoan, essential to ensure the system offers the widest choice. This panel has grown to incorporate many household name

set on our insurance sub-site produces a quote in some 40 seconds, and like YourCarLoan, once the information is inputted, personally-tailored quotes are there not just for the vehicle the customer has expressed an interest in, but every vehicle listed on that dealer’s site. The customer can browse, find the perfect car for them, price it all up, and buy it – all from the dealer.’

lenders such as Barclays Partner, Carlyle Finance, GE Money, Fortis Lease and others.

‘To say there’s been a pent-up demand for this would be an understatement,’ Martin says.

‘There has been no-one, whether manufacturer, AM top-100 dealer, car supermarket or streetcorner car lot, that has said this is rubbish and won’t fit my business.

‘We have had one or two, but only one or two, dealers initially worried that people would stop visiting their showrooms. But what we point out to them is that YourCarLoan produces extra, incremental business – the walk-in customers will still walk in. It’s like having a business manager in your showroom, 24 hours a day, seven days a week.

‘It’s all part of putting all the costs of ownership onto the one site – the dealer’s site, so the customer stays there.’ Never has a truer word been spoken. Isn’t it time you got involved?

‘With just one set of details entered by the customer, they will get finance quotes for every car on your website.’

CarDealer

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37 7/3/08 14:13:02

Round The Clock

PROTECTION

For The Road Ahead Providers of market leading: Payment Protection Insurance GAP & RTI Insurance Mechanical Breakdown Insurance MOT Test Insurance Tyre Insurance Key Protection Insurance SMART (Small Accident Repair Technology)

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CarDealerIss1.indd 38

Attracting one new customer every minute

7/3/08 14:13:03

Peering into the lives of the motor trade...

On the spot interview Name: Mike Whytock Age: 42 Job: Black Horse Motor Finance acting MD

Name: Mike Whytock Age: 42 Lives: York Any family? Yes, one daughter, Ellie. She’s eight.

What do you drive? Nissan Murano What was your first job? Lorry driver/ tyre delivery (Michelin man) in school holidays. First serious job was an account manager for Mercantile Credit.

‘Automatically provide customers with a finance quote – only then will they see it’s competitive.’

them to compete effectively and competitively with direct lenders. This will prove to be one of the biggest challenges, I think.

Advancements in technology What was your first car? Black will mean a change in the way Ford Fiesta 1.1LX. My driving we deliver our services to dealinstructor’s old car. ers going forward, but this will create additional efficiencies for Who do you work for all of us. Finally, we must strive now? Black Horse Motor & to create innovative products to Leisure Ltd. I’m the acting protect dealer income and point managing director. of sale finance.

What newspapers/magazines do you read? The Times and Racing Post at weekends!

What does this involve?

Current responsibility for running Black Horse Motor, Caravan & Motorhome and Motorcycle Finance, Black Horse Fleet Finance and Black Horse Warranty.

bought? The Clash by The Clash.

Any downsides to the job?

All the hard work, none of the pay and three phones!

Do you have an average day and how does it pan out? Up by 5.30am, on the road or on What would you say are your email by 7am (depending where job’s biggest challenges? Con- I’m working), board meetings, tinuing to provide dealers with team meetings, teleconferences the tools necessary to enable and dealer visits.

Aston Villa youth team, Aston Villa U15s…you get the point!

Favourite drink? Gin & Tonic (large).

Favourite holiday destination? Tuscany, Italy.

Have you got any superstitions? Yes, I can’t have any volume controls (car stereo, TV) on odd numbers.

What is the most expensive What is the biggest chalthing you’ve ever bought? A lenge car dealers’ face? From diamond ring for my ex-wife – what a schoolboy error that was! a finance point of view, the ever tightening rules and regulations on selling finance (FSA, What’s your mobile phone ring tone? Mr Big Stuff, Aretha CCA) and customers coming into showrooms with pre-arranged fiFranklin (Soccer AM). nance. Also European legislation What was the first record you and the ‘green issue’.

What’s your favourite film and the last you saw? My favourite would be The Godfather. Last one I saw was Atonement – and I don’t know what all the fuss is about!

Favourite football team?

Aston Villa, Aston Villa reserves,

What would be your number one tip for car dealers?

Automatically provide customers with a finance quote. Only then will they realise how competitive point of sale finance really is.

And finally... what’s your motto in life and business?

Carpe diem – Seize the day!

Want to face the Car Dealer questions? It’s not as bad as it sounds. Email james@blackballmedia.co.uk for details

CarDealer

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7/3/08 14:13:09

cult cars tried and tested

...That was a good idea, with AutoTrade-mail’s Kevin Watson

How do you negotiate?

What denominations are best to negotiate in?

I have recently been talking to sales managers about this and it still seems that a lot of dealers negotiate in £100s when trying to close a deal with a customer. For example, they will bid £5,500 as opposed to £5,450 or £5,425 for a part-exchange.

By negotiating in smaller denominations it conveys to the customer that the figure has been a carefully thought out process. Why not move to negotiating in £50s or even £25s instead?

Let’s assume the average dealer is selling 400 cars a year. If they can retain an extra £25 per deal this equates to an additional £10,000 profit a year, which should go straight to the bottom line. That is a large percentage extra if the average dealer was making £100,000, but as we know too many are unfortunately making a lot less.

aftercare. Interesting then that one of the largest professional operators in the country is forecasting a retained profit per unit of £330 for 2008!

Customers shop from dealer to dealer as they are convinced we make thousands and so have loads of profit left up our sleeve.

Prove to them that you are not making thousands and then they will have no reason to visit your nearest competitor. I appreciate this is easier said than done, but for marginal deals it is worth asking: ‘how much are you happy us making out of you?’ Then work from their answer to show them that they are in fact actually getting what they want, if not better!

Are my cars ‘priced to sell’ or ‘priced to keep’?

I have always liked the expression ‘priced to keep’ because we all have cars on our forecourt that this saying is relevant to. It says so clearly what will happen. The pain will not go away and will in fact get worse so perhaps it is worth checking how many of your cars are priced like this!

An exercise to assist would be to put yourself in the customer’s shoes and look on major providers of retail vehicles such as Auto Trader and just see if you could buy one of your cars for less and question why you wouldn’t travel that distance not to.

How much are customers happy for us to make when selling them a car?

This may sound rather strange, but maybe you should ask them. I have done this on most of the deals I have closed in my life and I am always amazed at the results.

Often the answer is 10 per cent (wow, that would be nice!). But in a volume franchise I have found that the answer is never less than £500. Quite honestly, from my experience it seems that no-one would expect or even want you to earn less than £500 for providing a lasting professional service with ATO45 Car Dealer Ad

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Page 1

That was a good idea!

Kevin Watson FIMI is a Director for Autotrade-mail and has worked in Franchised Motor Dealerships for over 30 years.

Run by dealers for dealers Est 1999

CarDealer CarDealerIss1.indd 41

“I am not trying to re-invent the wheel, I cannot give you a simple solution to profitability but it does occur to me that over the years we have all introduced good ideas in our businesses but sometimes stop using them.

Why? They are still good ideas! I speak to dealers right across the country on a daily basis and therefore “Car Dealer” magazine has invited me to run a

monthly article to simply remind us of these good ideas. I thought this in itself was a good idea!

This is not a profit clinic, nor really a best practice plan. They are not my ideas, simply a monthly page to remind all of us of what we probably used to do anyway!

I hope you find it of some value.”

If you want to remind us of a good idea then please contact: kevin@autotrade-mail.com and I will send £100 to the best idea that is published.

41 7/3/08 14:13:12

Are you squeezing the last drop out of every finance deal?

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4.99%

Nil Deposits, Up to 72 months PCP, Large Balances High Value Cars Accommodated Propose Online Visit www.matrixcredit.co.uk

The non-prime specialist

Part of the Jigsaw Finance Group of companies

CarDealerIss1.indd 42

t : 0845 680 0222 f : 0845 680 0422 w : www.matrixcredit.co.uk 7/3/08 14:13:13

feature

>>

Experian has updated its Auto Check service.

Richard Aucock finds out what’s new

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feature P

rovenance checks are – like customers, cars and cashflow – an intrinsic part of the automotive retail business. Without them, there’s no way of knowing if the vehicle you’re taking in as part-exchange is a hot buy, or just plain hot.

Global information services company Experian has been offering provenance check services for over a decade now, and is one of the leading players in the sector. The firm’s services are used by around 80 per cent of the top franchised dealers in the UK – and, each year, it helps them spot the 150,000 cars that are stolen, 670,000 cars that are written off and the five million cars that are brought using some sort of finance agreement. Overall, one in three (yes, one in three) cars has a hidden history – hence the need for checking.

But none of us can rest on our laurels in this business, and Experian is no exception.

It recently enhanced its service, now named Auto Check, with two intriguing new additions – Time Line and Environmental Report. Both have real benefits and have been available to subscribers since the back end of 2007.

For Time Line, think the key points of a car’s history, presented to you on your computer screen. And Environmental Report – well, it’s the car’s green credentials, presented in a way your customers will instantly recognise.

With a whole host of other updates and improvements, the new, improved Auto Check has been in operation for several months now.

But how did Experian come up with such a well-rounded product? Well, that was easy – by using people like you.

Stephen Lamb is the chief executive of dealer group Gordon Lamb. The group has 10 dealerships in the Derbyshire, South Yorkshire, Nottingham and Sheffield areas, and specialises in most major manufacturers. His group has been working closely with Experian in developing the latest generation of Auto Check.

Lamb has long seen an advantage of provenance checks. ‘We’ve used Experian for over five years now, and would recommend anyone to take provenance check services.’

With the help of Experian, Gordon Lamb’s risk to bad vehicles is virtually nil – ‘our net is sufficiently tight to not make any cock-ups.

Services such as Experian are all about minimising exposure to dodgy cars’.

As chief executive, Lamb is well placed to comment on the changes Experian have made, from the top of the pyramid. ‘My experience of provenance checks comes when signing off a cheque!’ There are immediate benefits here.

‘The new presentation is very straightforward, so it’s easy to see what’s been done and why.

The credit procedure checks are particularly useful.

‘It’s evolution rather than revolution,’ adds Lamb, which is also important. Rather than complicating things, the new features are presented in a logical and straightforward way, merging well with existing layouts – which means minimum retraining for sales and accounting personnel. They will have the full opportunity to easily use the new features

44 CarDealerIss1.indd 44

‘overall one in three cars has a hidden history – hence the need for checking.’

Gordon Lamb Mitsubishi saleswoman Nicola Wall played an important role in shaping Experian’s new Auto Check service

when it suits, rather than having to read the manual. ‘Used car buyers are interested in two things – how much the car is, and how much they can get off it,’ Lamb explains, but he says it’s a much more straightforward approach than that for new car sales – they’re a different type of buyer.

The simplicity of Experian’s provenance checks, coupled with the comprehensive information it offers, is an important factor in helping dealers think on their feet and strike

the best deal for all parties concerned.

It was refining these basic needs that was the first step in developing the improved Auto Check service. Experian’s trials with Gordon Lamb staff started back in May 2007. Sales executive Nicola Wall was involved from the start, and has had lots of input into how Auto Check has developed.

‘It all started with Experian coming to visit us, and asking us what we wanted, and didn’t want, Auto Check to offer. They took these

CarDealer

7/3/08 14:13:20

Auto Check stops dealers getting fingers burnt

Reports are clearly laid out and easy to read

Salesman show customers Experian reports

comments and, a few months later, introduced a working version for us to trial.’ This methodical process included a series of site visits, filming Nicola at work.

Experian Automotive Director Kirk Fletcher says that this was all part of their unique approach to end user research. Specialist service innovation and design company live|work were enlisted, to design a series of solutions, from inputs including filming actual users. Habits, processes and cultures were observed, and analysed

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in the studio to help perfect Experian’s product.

By July 2007, after a tightly-controlled 90-day development push by Experian, Nicola was able to integrate the new system into her daily work.

The benefits were immediately obvious.

‘It’s improved massively’ she says. ‘The most obvious benefit is in how user-friendly it is. Before, it was very thorough, but it wasn’t as clear as it could be. This is less of an issue for us because we work with it every day. But when you’re showing it to a customer, it was really tricky for

them to understand.’ This clarity is a real benefit to Nicola; it helps make those ‘monitor-swivel’ moments a lot more productive for both parties.

To help with clarity, Experian adopted a system of icons, similar to warning lights on a car’s dashboard. These were all tested and assessed, and help even the inexperienced – such as car buyers – instantly understand what the system is telling them. The information is the same: it’s this newfound clarity of presentation that’s the advance. >>

45 7/3/08 14:13:30

dashboard

But don’t think Experian missed the details.

As Nicola explains: ‘A minor problem before was that it wasn’t very clear whether you were looking at an import vehicle or not. Now, it’s flagged up, and is immediately obvious.

‘Indeed, the overall colour-coding is useful: “clear” vehicles pop up in green, with vehicles carrying something to be aware of coming up in red. We actually asked them to do this, and it’s extremely useful if you’re up against it.’

As for the new features, Nicola is full of praise for Time Line, and offers some interesting observations. ‘With the old system, you knew how many people had owned the car, but not for how long. Time Line tells you that, and it’s clearly displayed so you can quickly make a judgment. It’s especially handy with ex-dealer demos, which will show up as having several owners in a short space of time. Before, people could be put off by this – but now, we can prove the first owner was a dealer, who sold it as an ex-demo after 12 weeks.

‘The ability to see who has run a check and when is useful, too. If it was a finance company,

‘We can check to ensure the car is completely clear – just to make sure we don’t get bitten!’ we know it’s previously had finance on it. But if it’s someone in the motor trade, we know someone else has looked into buying it.’

Time Line even shows registration plate changes – and Nicola is canny enough to see the worth of this, too. ‘Sometimes, you can find finance has been taken out on the vehicle’s original plate – but then, it may have had a private plate put on. If we run a check on this number, it’ll show up as clear: having all the numbers there means we can check them all, to ensure the car is completely clear. Just to make sure we don’t get bitten!’

Growing customer knowledge of green issues has seen Experian introduce the Environmental Report facility, and Nicola has put this into use,

too. ‘It’s presented in a way that customers are familiar with: like with new cars, you can print out the coloured VED band chart, which is similar to something they’ll see on a fridge in Currys. I can tell them that the CO2 figure is 161g/km, but that means nothing to them.

With this, I can show it to them and they immediately know how green the car is.’

Longer term, Nicola’s idea is to put the charts on all the group’s used cars.

There’s even an extra aspect of professionalism here. The environmental label is mandatory for new cars; having it available for used cars too gives a little extra degree of professionalism to the dealer’s stock. ‘Experian are probably ahead of their time with this service,’ adds Stephen Lamb.

‘Overall, Auto Check now does everything we need it to,’ adds Nicola. ‘And we know that, if we think something may be useful, we can call up Experian and they’ll take it on board for consideration. If it’s of benefit, they’ll do something about it – or feedback the reasons why something’s not possible.’

‘Clarity is vital – dealers have enough on their minds...’

‘Customer demand is very much the driver behind what we do,’ explains Experian Automotive Director Kirk Fletcher, pictured right. ‘It’s easy to say we’ve developed things – but those developments have to be relevant.’

Such dealer feedback has played a prominent part in developing Auto Check.

The involvement of live|work was a real help too. ‘This allowed us to pinpoint anything, no matter how small, that held up the process. Minor irritations, that don’t otherwise come out when quizzing people

46 CarDealerIss1.indd 46

about what they like and don’t like – but which slow things down when repeated 20 times a day. From this, we were able to map how the system worked, and used this to pinpoint new opportunities.

‘Clarity is vital. Our aim was to keep things simple and easy to use. This is an operational tool, not a research system. People don’t want flashing lights or showiness; dealers have enough on their minds without us

over-complicating things. That’s why we developed the icons system – to make information as prominent as possible.’

Future development can take many forms, but will always, confirms Fletcher, be in response to what dealers want.

Over a dozen groups, from major plcs to smaller independents, were consulted during the latest round of developments, and this model will continue to be used in the future.

CarDealer

7/3/08 14:13:34

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CarDealer

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7/3/08 14:13:48

analysis cult cars

...in association with AA Warranty

Crunch time for profits Don’t let the credit crunch drive your profits away, says AA Warranty’s managing director Simon Tennyson

T

he current credit pinch is naturally a cause of much concern for many motorists. New research has found the number of people intending to buy a car in the next 12 months has fallen from 25 per cent a year ago to 20 per cent.

And according to the automotive division at Experian, vehicles less than three years old suffered the highest loss of sales in quarter three of 2007 – an eight per cent drop compared to the same time in 2006.

In the wake of such economic instability, the challenge for dealers is how to retain strong profit margins while consumers keep an increasingly watchful eye on their disposable incomes.

When selling a vehicle aged three years or more, recommending a reputable extended warranty product is an effective way for dealers to make decent margins while reassuring their customers they are making a worthwhile investment which can protect their finances in the future.

Designed specifically to safeguard vehicle owners against the risk of paying out large unscheduled repair bills, extended warranties also act as a valuable customer retention tool. This means sales of warranties go a long way towards achieving customer lock-in and getting a customer to return to the dealership for maintenance and servicing – whatever economic pressures are being experienced at the time.

For both new and used car sales, GAP insurance serves as a highly effective and beneficial valueadded sale to up-taking customers – particularly as it could be argued that consumers are generally looking to keep their new vehicle for longer when making a purchase.

While some makes and models depreciate in value more than others, advising customers to carefully consider protecting themselves against potentially high depreciation between vehicle purchase price and its value in the event of a total

‘We find GAP insurance is very popular’ TAYLORS Pitstop, based in Surrey, has been offering AA Waranty’s products to customers for the last year.

Through continual support and training, the dealership, pictured below, has seen a significant increase in profits.

‘We’re all fully trained up in warranties and the AA Warranty name is a big draw for many of our customers,’ explained sales

manager Joe Nadeem.

‘Before we made the switch to AA Warranty we didn’t even offer our customers GAP Insurance, but with the ongoing training and support of our regional development manager we now achieve penetration of 35 per cent which is a great additional profit centre.

‘Every couple of weeks, AA Warranty’s representa-

loss accident is a highly worthwhile exercise.

With finances under very close scrutiny, customers should be encouraged to think about how they could feasibly replace their vehicle if it is written off during their ownership.

More significantly, through training in the product itself, dealers are more knowledgeable and confident when recommending such products to their customers. However, at AA Warranty, we don’t expect our dealer partners to be left to their own devices or leave them to call an automated phone service whenever

tive comes down and we get an update on all the latest industry news and products while he makes sure things are working smoothly.

‘GAP insurance seems to be very popular at the moment, possibly because customers want to know the money they spend today can be recovered if the worst happens.’

they need our guidance. Our highly experienced industry professionals visit our dealer partners at least once every two weeks to ensure product knowledge and understanding remains high.

And AA Warranty can also provide dealers with valuable sales leads. Dealerships can sign up to unique access to data that targets motorists in their respective geographical area and tells them exactly what customers are looking for when they purchase a new vehicle.

An average dealer can make an additional £76,000 in profit just by using this facility.

A third of motorists with warranty cover put it to good use LATEST statistics from AA Warranty reveal that each year, a third of motorists with warranty cover require unscheduled maintenance and repairs to their vehicles.

With the costs for replacement engines and gearboxes running into thousands of pounds, drivers need to be urged to think about how the expense of these unexpected faults can be absorbed.

According to AA Warranty research, the

CarDealer

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most likely component to fail on a vehicle during winter is the ignition coil pack – costing on average £180 to replace.

However, while claims for replacement engines and gearboxes are less frequent than coil packs and head gaskets, they can hit drivers’ wallets by up to an alarming £5,000 – just for an average family car.

Simon Tennyson, managing director of AA Warranty, said: ‘When most cars are

four years old, the manufacturer’s warranty expires. However, when considering whether to take out extended mechanical breakdown insurance, many drivers perceive it as an elective cost. Yet thousands breakdown at the roadside each year, and it is only at this point where its convenience is appreciated.

‘The likelihood for components to fail generally goes up with a vehicle’s age.’

51 7/3/08 14:13:51

used cars Buyers don’t care about fuel figures

FUEL economy is clearly important to used car buyers. By definition, they are more cost conscious than the new car chooser.

But despite the relentless rise in petrol and diesel prices at the pump, used car buyers still aren’t that bothered about MPG. When dealers were asked how much importance their used car customers attach to fuel economy none reported that it is their top priority.

Size matters to private buyers THERE has been talk recently of private car buyers downsizing. The belief is that this is a trend driven by fuel economy considerations and other running costs. CAP research into whether this is true suggests that there is a significant downsizing trend but that it’s not universal.

Around 40 per cent of dealers confirm that their customers are tending to move into smaller models when they replace their car, while about half say they have noticed no such trend. Those that are say economy and the environment are the reasons.

Do your customers take out finance?

WHEN asked why dealers think their point of sale finance figures have declined, more than half said it is because customers believe they can get a better deal elsewhere.

The decline in POS finance has beeen well documented and CAP research found that 20 per cent of dealers believe that they never even get the chance to convince clients to take out their deals because they have already arranged their finance before buying.

52 CarDealerIss1.indd 52

...in association with CAP

Part-ex mystery With more customers selling their own cars, CAP finds dealers are facing a shortage of quality part exchanges

A

year ago CAP was indicating a consistently reported shortage of good quality partexchange cars.

Dealers were also increasingly claiming that the part-exchange cars offered by their customers were older, higher mileage and generally not in a condition that made them readily retailable.

The same research a year on seems to confirm this as a trend. Less than 10 per cent of used car dealers report that they are now offered more retailable cars in part-exchange than they were a year ago.

Almost 70 per cent say that they are offered fewer cars of sufficient quality to retail their way out of, while the rest believe there has been little or no change.

Digging deeper, dealers have been specifically asked if the problem was still the age, mileage and condition of the cars they are offered and 60 per cent say that it is. About a third report that there is little difference, suggesting that for them the problem is limited or insufficient numbers.

A small minority are enjoying the benefits of being offered generally better part-exchange cars today. The belief in the trade is that the partexchange problem is largely due to private customers’ assumption that they will achieve a better financial deal by disposing of their car privately before going to the dealer.

With the proliferation of online disposals sites such as Auto Trader, eBay and Motors.co.uk it has never been easier to achieve a private sale and it seems dealers are suffering as a result. However, dealers are benefiting like never before from the internet too and research reveals that a huge proportion of their retail sales stem from enquiries originally made online.

Some dealers say that up to 85 per cent of their sales begin with the car being seen online and very few put the figure below 40 per cent. Taking the overall reported average it seems that very close to half of all sales begin with the car being seen online.

More buyers are selling their part-exchanges online before visiting a dealer

‘Dealers told CAP researchers that on average half of all their deals originated from the internet.’

deal that is right for them.

The used car market in general has taken off with some energy this year, despite concerns about economic conditions voiced by some earlier in the year. Every indicators used in the monthly research for CAP Black Book show strength and positive trends.

Month-on-month measures of showOf course this does not mean that room traffic and retail sales show that all dealers automatically sell more cars the market has consistently improved simply by having an online presence. since the start of the year.

But it does reveal the significance of Perhaps most revealing is the the internet as a marketing tool. fact that year-on-year measures Research consistently suggests that show an increase on the same the internet also drives car prices down period in 2007. and reduces customer loyalty. Because There is stiff competition for stock it is now possible to compare prices in a and cherry-picking has been less of an wide geographical area cars have beoption for many who find they have come ‘commoditised’ more than ever no alternative but to buy some work, before and customers are prepared to in terms of preparation, if they are travel to save a few hundred pounds not to be faced with empty spaces on simply because they are aware of more their forecourts. CAP’s research reveals deals. Research is now under way to a positive mood across the market and discover the typical distances customers a desire to consolidate rather than risk are prepared to travel to secure the the old boom and bust cycle.

CarDealer

7/3/08 14:13:57

Trading places

z

...in association with BEN

Can Car Dealer sell a car?

Car Dealer editor James Baggott becomes an, er, car dealer in an elaborate bid to raise moeny for BEN. What could go wrong?

Y

ou’re mad. It’ll never work.

Why is there a blooming Fiesta making my drive look untidy – just three of the negative comments I’ve had to put up with during the course of sorting out this feature. Granted, they might all be very valid points, but none of them have managed to dissuade me from my grand plan.

So what’s the big idea? Well, like all good ones it started with a simple scheme that quickly evolved into a rather elaborate one. I like to think it’s pretty easy – sell some cars, have some fun and make some money for charity. But then considering we’re not pros that probably won’t be the case.

I wanted to find a generous company to donate us a car, we’d attempt to sell it for a profit, then invest in another car. Each month we’d trade a different car and after 12 months take the money we had in the pot and hand it over to BEN – the superb automotive charity.

So that’s how I pitched the idea to our friends at Autotrade-mail.

Boss Marcus Kelland and his right hand man Kevin Watson listened

‘There’s a chance we’ll have a fair bit of cash to hand over to BEN at the end of the year.’ to my ramblings before kindly pointing out the legal implications of selling that many cars. But all wasn’t lost – we soon thrashed out a new idea: they’d donate a car, I’d try and sell it and then hand the money on to a real motor trader (someone who actually knows what they’re doing).

We’d hand them the cash and they could invest it in whatever trade-in or car they saw fit. They’d

then try and retail it as many times as possible in a month, growing that lump sum into an even bigger one. At the end of the month, they’ll hand the cash onto the next car dealer and on we go. This way, there’s a far better chance we’ll have a decent sum to hand over to BEN at the end of the year. And with the competitive streak that runs through the veins of every car dealer we know that everyone is going to want to turn our intital stake into as much cash as possible.

I know it all sounds a bit complicated, but it’s not really – we want to raise as much money as possible and at the same time keep you entertained with an interesting yarn. Fingers crossed it’ll work!

So, if that’s how it all started,

What’s BEN and how can you help?

BEN is the only occupational charity for those who work or have worked in the automotive and related industries. Founded in 1905, it provides practical help, support, advice and friendship to more than 15,000 men and women and their families every year. In addition, BEN provides a home to more than 350 individuals who reside in one of its four residential centres

in the UK and offers day care facilities at its centre in Coventry. A registered charity, BEN is funded in the main through donations.

We’ve lined up a few dealers to run legs of the relay, but we need more! If your dealership thinks you’ve got what it takes to turn our stake into a healthy profit call James on 07747 600855 or email james@blackballmedia.co.uk.

where are we now? Well, going back to those negative comments, said Fiesta is sat on my drive. After a month’s hunting, Autotrade-mail delivered the goods – one baby Ford, M-reg with 51,000 miles and a year’s MOT. It’s a genuine one lady owner, has power steering, electric windows, sunroof and a sprightly 1.3-litre petrol engine.

Bad points? There’s some rust on a rear wheel arch – but nothing major – and there’s no tax. I didn’t want to tax it and then add another owner to the log book.

So that’s the car, now the plan.

I’m going to stick it in the Auto Trader. To keep costs down, I’m on the blag, so hoping to get that free! I also plan to speak to those nice people at HPI and get it checked out by them too – should help when we come to sell!

Price wise, I’ve done some research on the advice of my former car dealer brother and found similar models are going for about £500. It’s for charity so I’m aiming for £695 and a willing buyer.

Wish me luck – I’m off to pen my ad. Hopefully my baptism of fire in the car trade won’t leave me with a nasty burn…

It wouldn’t have been possible without...

CarDealer

CarDealerIss1.indd 53

53 7/3/08 14:13:59

tail light

Devine inspiration T

he rush for the 08-plate in March is a vital period for every motor retailer. Around 20 per cent of all new car sales this year will be made during March and this is typically followed by a busy used car sales period. But for the first time in many years, we go into this key period with consumer confidence under pressure.

In this environment it is imperative that you and your team accentuate the many benefits buying from a dealer has to offer. ‘Opportunity is now here, or opportunity is nowhere’ – just one typo’s difference, but an entirely different meaning. Small details can make all the difference!

A positive approach is not just a question of blind confidence. There can be no hiding from the reality that the ‘credit crunch’ is having an effect on consumer confidence. The news headlines are having a field day with negative stories. Therefore, it is imperative that we remain positive through this period and concentrate on the positives, rather than the negatives.

Let’s look at some of the fundamentals from a slightly different perspective: Interest rates have fallen back (and there may be more to come), employment levels remain high and inflation while higher than we have seen for a while is expected to top out at three per cent in the summer before falling back (upon which the future base rates largely depend). House prices have not collapsed and are generally holding up well. Same report – different perspective!

It is this positive perspective we need to emphasise. It is certainly true to say that some customers will be finding the current climate particularly challenging, but this is not necessarily the case for the majority of customers.

Creating a positive sales proposition is possible.

‘opportunity is now here or opportunity is no where – just one typo, but it makes all the difference.’

Customers faced with higher bills may be looking to switch to more economical cars, or move to cars that help them to avoid congestion charges. There will always be customers who are looking for a roomier car, or one with more image appeal.

Make sure your web and marketing materials remain upbeat and focus on the positive. Let potential and existing customers know how you can help and just how easy it is to buy from you, including what finance options are available.

The question all dealers should be asking themselves is – is this the type of upbeat experience that your business is portraying? Check it out.

Have your own business mystery shopped (including marketing materials, web and phone experience). At the same time complete exit interviews with customers to find out why they chose your business and what motivated them to change car right now.

Success in a challenging market is not just about having a positive mental approach, it is about forward thinking and planning your way to success.

Devine is CEO of GE Money Motor Finance. Email Who is Brendan Devine? Brendan him at brendan.devine@ge.com or visit www.geauto.co.uk

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Check Mate

Editorial Director James Baggott E: james@blackballmedia.co.uk T: 077 4760 0855

Sales Executive Darren Stokes E: darren@blackballmedia.co.uk T: 079 3677 8599

Advertising Manager Jon Baggott E: jon@blackballmedia.co.uk T: 079 3677 8599

Picture Editor Mandy Taylor E: mandy@unp.co.uk T: 01274 412222

Avoiding burnt fingers

Wonder Web

How you can sell insurance

Geneva Show

What you’ll be selling soon

FIAT 500 It’s hit the UK, but

can Fiat’s new baby out-mini the Mini?

CarDealerIss1.indd 54

LOTUS EUROPA Think of it as an Elise with a &MFDUSJD J PO UIF XBZ roof. But who’ll buy it?

Contributors Mike Askew, Stewart James, Richard Aucock, Maurice Hardy, Tom Scanlan, Mike Hind and Kevin Watson Thanks to...

Karen Hughes, Sarah Harlow, Justine Hoadley, Tim Marlow, Graham Filmer and Danny Lee

Car Dealer is published by Blackball Media Ltd (Company No 6473855) and printed by Warners.

All rights reserved. Conditions of sale and supply include the fact Car Dealer shall not, without our consent, be lent, resold, hired out or otherwise disposed of in a mutilated way or in any unauthorised cover by way of trade or affixed to or as any part of a publication or advertising, literary or pictorial matter whatsoever. Car Dealer is fully protected by copyright and nothing may be printed wholly or in part without permission.

7/3/08 14:14:01

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Transform your business At a time when the car market is tougher than ever before, we know we need to provide more than just finance.

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Ring us today to find out how we can transform your business

call Craig Goold on 07747 008 087 GE imagination at work GE Money is a trading name of GE Capital Bank Limited, 6 Agar Street, London WC2N 4HR. Credit subject to status, available to UK residents aged 24 years and over. GE Money is a trademark of the General Electric Company. GE Money is authorised and regulated by the Financial Services Authority and whose registration number is 204572.

CarDealerIss1.indd 55

7/3/08 14:14:01

WE’VE INVESTED £15 MILLION TO DRIVE BUSINESS THROUGH YOUR DOOR. We’ve launched our biggest ever advertising campaign. It will reach 92% of UK adults and be seen everywhere, from television screens to fuel pump nozzles. And why are we doing this? One reason - to increase footfall to your dealership. To find out how we can help you sell more cars more profitably, simply call us now on 08444 706 760 or visit www.yourworldmadeeasy.co.uk

CarDealerIss1.indd 56

7/3/08 14:14:03