Car Dealer Magazine: Issue 10 by Blackball Media

CarDealer. Issue 10 January 2009 www.cardealermagazine.co.uk

VAT BACK? Act now for a cash windfall [p24]

Driving the future of the motor trade

INTERVIEW

INNOVATION

Fiat chief speaks out

Txt revolution

[UK boss tells us why he thinks the crunch is a GooD thing]

[How mobile technology can help you sell more]

Now wITH S

ROAD TEST

SALE T FIGUR S ES p6 5

Greatest Drives: Bentley GT Re-igniting our passion for driving in W12 bruiser

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start Issue 10 | January 2009

‘Don’t let anyone tell you that the new MiTo is Alfa’s first small car.The Alfasud may have ended its life under a cloud, but when it was launched nothing in the class could match it...’ Sales Legends, p40 IT’S the gold rush of 2009 – and it starts here. In this issue we report on the monumental cock-up that could land you with a cash windfall running into hundreds of thousands of pounds. It’s a complicated matter that involves VAT on demonstrator vehicles over a 20-year period, so we’ve spoken to a tax expert to explain the details. But what even I can understand is that this is a very real opportunity to claw back some very large sums of money. When times are tough, sales low and morale at rock bottom, a cash bonus in the scale of that which our tax expert believes possible could be the difference between staying aﬂoat and going bust. Deputy editor Richard Aucock reports on the rush to reclaim VAT before the March 30 deadline in a special report on pages 24 and 25 – fingers crossed it pays off for you. Have you noticed how customers want information now? Not when you’re ready, not just when you’re open and not when you can be

bothered. Now. And it’s all technology’s fault. Without the information superhighway, Google and mobile phones people would have to wait to get details on the cars you sell – but not anymore. You may think your website does the job when you’re closed, but what about those customers that have a snoop around your site when you’re shut? They could be cash rich, but time poor – only able to visit your site on the way home from work. In this issue we report on a very cool way to cater for these buyers – text messages. You put a text number and unique code in the windows of all your stock and potential buyers can text it (for 10p) and receive back the car’s full details: service history, owners, spec and price can all be transmitted. What’s more, at the same time they’re getting details you get their mobile number sent to you with a note of what car’s had an enquiry. Clever stuff. And the opportunities for it are endless – how about just putting the number in your local paper adverts, cutting the size needed and the cost in the process? Read all about the radical new

service on pages six and seven. We’ve had a mini revamp of our website this month too – it’s got a fresh look, more usable features and a very cool road test directory at the bottom of the homepage. It’s all done with an iPod-style cover ﬂow graphic that is as much fun to play with as it is useful – go online and have a play yourself, you’ll see what I mean. We update cardealermag.co.uk every day and add breaking news stories as and when they happen, so if you’ve got some time on your hands check it out. Which just leaves me to say thanks to all our readers and advertisers for their support in 2008, I hope you all have a very merry Christmas and a far more prosperous new year than everyone’s predicting! Happy selling…

James Baggott, Editor

CarDealer

WOW!

NEW SITE LAUNCHED!

w w w. m o t o r t r a d e - m a i l . c o m

COMMERCIALS, CARAVANS, MOTORHOMES, MOTOR BIKES AND CARS

ALL ON 1 SITE. SEE PAGE 17 FOR FULL DETAILS

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ns.co.uk TheGreenk Cabrioletcar.co.uk MoneyOnCars.co.uk .co.uk ContractHireeGreenCarWebsite. .co.uk ContractHirenCars.co.uk RoadTheGreenCarWebHireAndLeasing.com ebsite.co.uk RoadontractHireAndLeasadTestReports.co.uk Leasing.com Savek RoadTestReports. rioletcar.co.uk ConOnCars.co.uk RoadTheGreenCarWebgSpecialOffers.co.uk ns.co.uk TheGreenk Cabrioletcar.co.uk MoneyOnCars.co.uk .co.uk ContractHireeGreenCarWebsite. .co.uk ContractHirenCars.co.uk RoadTheGreenCarWebHireAndLeasing.com ebsite.co.uk RoadontractHireAndLeasadTestReports.co.uk Leasing.com Savek RoadTestReports. Leasing.com CarSu.co.uk TheVanWebk Cabrioletcar.co.uk HireAndLeasing.com ports.co.uk TheVan06 Text revolution uk Cabrioletcar.co.uk How mobiles can help you sell nCars.co.uk CarSu08 Dealers desperate for ML LeasingCompanies. Why new 4x4 is exciting network ets.co.uk TheGreen11 Porsche Panamera uk ContractHireAn- Is this the ugliest Porsche ever? k CarSupermarkets. 13 Pre-budget report analysis mpanies.co.uk Fleet14 Hoon’s SMMT speech eGreenCarWebsite. 16 Glass’s web conference HireAndLeasing.com 18 Catalogue for dealers ffers.co.uk TheVan20 Solent Group collapses ers.co.uk FleetDirec22 Big Mike & Billy Two Bags ndVanAuctions.co.uk 24 VAT reclaim deadline Offers.co.uk Cabrioo.uk SaveMoneyOn- How you could reclaim thousands FleetDirectory.co.uk .uk CarLeasingSpeuk FleetDirectory.co. rWebsite.co.uk Vanng.com CarLeasingCarAndVanAuctions. gSpecialOffers.co.uk .uk TheVanWebsite. HireAndLeasing.com ebsite.co.uk RoadontractHireAndLeasadTestReports.co.uk site.co.uk CabrioletontractHireAndLeasadTestReports.co.uk site.co.uk CabrioletCarDealer MoneyOnCars.co.uk lOffers.co.uk Saveco.uk FleetDirectory.

ignition Issue 10 | January 2009

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‘With the California, we have something very different indeed. It’s a signiﬁcant model which in many ways is a revolution for Ferrari.’

Road Test, p26

forecourt 26 31 32 36 38 40

Ferrari California VW Scirocco Bentley Continental GT Volvo XC90 R-Design Cult Cars: BMW M6 Sales Legends: Alfasud

features 42

Fiat chief interview

Van sellers can conquer the crunch

TV Winner Right Click Picking the best web provider

Auctions More consumers head to auction

59 61

The Automatic Products Sat Nav Christmas special

On the Spot Motorpoint manager quizzed

HPI Valuations There’s little winter cheer

SMMT Sales ﬁgures November’s winners and losers

MotormartTV’s offering for dealers

Dot Com The new leasing phenomena

‘Credit crunch holds opportunities’

LCV Insight

Sub-Prime Time Don Brough’s finance column

05 5/12/08 10:28:37

agenda

THE JOY OF TEXT

’ll textcha. Everyone’s at it nowadays. Who calls up their mate to arrange a night in the pub – and who texts? If you’re below the age of 30, you probably don’t even realise your mobile phone can make calls! Seriously, though, SMS messaging has been the revolution of the Millennium. Which makes it strange that businesses have still not exploited its power. What people use every waking hour for their personal lives remains an unexplored entity when it comes to business. So, for you car dealers, we have good news.

Is th e lates humbl e t Rich weapo text m e n a will rd Auc in the b ssage th revo o lutio ck disc attle to e ov m nise the ers why ake sal buy ing p the m es? obile roce ss

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Telecoms expert Phillip Carter has come up with a clever service for car dealers that will help you interact with customers on a level never seen before. ‘Cartextservices is very simple, once you get your head around the basic concept,’ explains Carter. Who didn’t explain, but demonstrated it to us. He showed us an advert for a car. At the button was the line, ‘For more info, text ‘ Car 112’…’ to a five-digit number. On our mobile, we did so. We instantly got a text-received bleep. Opening it, there was the whole shooting match on that car – its make, model, year, colour, trim, price, engine, mileage, insurance group, even all the acronyms for its bespoke spec – with the telephone number of the dealership right at the end. This was quite something. And so utterly easy to do – and what’s more only cost us the price of a normal text! That’s the exact premise of the service Carter offers. A means for customers to text you, requesting information on a car, and you having an automated system to fire straight back everything they could ever need to know. But it doesn’t just end there. You see, the software making all this happen is really quite clever. Because it automatically stores that customer’s telephone number, against the car they’re enquiring about. And it then e-mails and texts you with this solid-gold lead. It also builds up a database of these numbers, for you to access with foolproof ease. Which cars are doing well, which generate the most interest most quickly? You can tell, which makes restocking that bit more scientific. What’s more, as you can target the numbers and where you place them, you can also see which advertising channels get the best response. It’s perfect, says Carter, for those who want to browse and get the full SP on cars, but don’t want to initially be contacted by salespeople. ‘You still have a record of their contact details, you see.’ The casual observer is now stored in your system. And don’t worry if it all sounds a bit hi-tech – Carter’s hooked up with Experian, who enable number plate recognition for cars. Literally all you do is type in the registration number on the cartextservices web page, the mileage and the price, and the system does the rest. ‘It’s incredibly straightforward,’ said Carter. Everything is done online and, if you don’t fancy doing it yourself, just give Carter’s team the registration, extras and price and they’ll do the rest. They can even handle good old stock spreadsheet lists. Taking control yourself is best, though. ‘You have online access to all aspects of your service, so you can edit and update details – and also see the telephone numbers of those who have texted in.’ How gr8 is that! Details: 0870 742 6655

CarDealer

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‘The system stores the customer’s telephone number, then e-mails and texts the dealer with a solid-gold lead.’

07 5/12/08 10:28:42

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Dealers can’t wait for ML Loyal customer base means dealers can’t wait to get hands on new 4x4 HOW are Mercedes dealers reacting to the introduction of an all-new M-Class at a time buyers are shunning 4x4s? Well, they can’t wait to get their hands on it, says UK sales director Simon Oldfield. ‘Dealers are really fired up by the 4x4 factor,’ said Oldfield. ‘They have sold M-Class models now for a decade, have an excellent customer retail and business base and we will have a 90 per cent strike rate with the new diesel models. ‘We expect a lot of repeat business and the new model is much more car-like with an impressively long wheelbase and short wheel overhangs. ‘We are delighted with what has been achieved,’ he told Car Dealer in an exclusive interview conducted in the back of an ML 63 AMG. The mightiest ML of the lot produces 510bhp, accelerates

to 62mph in just five seconds and costs £77,455. The entry model, the ML 280 CDI, costs from £39,735 and will account for a sales mix of 31 per cent. The ML 320 CDI retails from £41,875 and will bring 59 per cent of registrations in this country. BMW’s X5 is seen as the key rival along with the Volvo XC90 and Porsche Cayenne. Oldfield believes the new vehicle will do particularly well in and around the M25, in key rural areas like Greater Manchester, Cheshire and West Yorkshire

plus Scotland and will be sold on the back of flexibility, versatility and more car-like attributes than ever before. ‘Its niche appeal is stronger than at any time in the history of the marque and our dealers have come back to us very favourably in this area,’ he said. Oldfield added lifestyle buyers will play a major part in the success of the vehicle along with the towing fraternity. Accessories will also be plentiful and dealers will be aiming to play the add-on market to the full which will also aid residuals. ‘The vehicle has real street cred and is much more about urbanity appeal. And, of course, it is excellent off-road,’ he told Car Dealer. Oldfield, who lives in rural Oxford, is 47, married with three children, is a graduate of the famous university and has been with Mercedes for 10 years. He started in engineering and has previously worked for BMW. RICHARD GIBBON

Reventon in UK! LAMBORGHINI Birmingham is to take delivery of the last special edition Reventon supercar. The one-million-Euro Lamborghini is the final of 20 cars ever to be built. Secrecy surrounds the identity of the customer, who was presented with the supercar at Lamborghini’s Bologna factory. ‘Our client was understandably delighted,’ said Lamborghini Birmingham sales manager Dominic Mulvey, who accompanied his client to Italy. The 211mph machine produces 650hp from its V12 engine. It will be the only Reventon in the UK, a model that first went on sale in September 2007. While the owner does not want to be identified, he has vowed to attend Lamborghini, motorsport and social events in it throughout the country.

B7 5TE

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Is Panamera ugliest Porsche ever made? German manufacturer reveals car that fell from the ugly tree hitting all the branches on the way down PORSCHE has unveiled its four-seat, four-door GT sports car – the Panamera – and it could be quite possibly the ugliest car ever! The all-new Porsche produces up to 500bhp and will be in dealer’s showrooms from late summer 2009. There will be no mistaking the maker’s fourth model line, which at 4,970mm long, 1,931mm wide and 1,418mm high, is almost as long as a Mercedes S-Class – and wider! It continues the Porsche family look (the ugly side), but includes a surprise at the rear. For there is a hatchback tailgate and what Porsche describes as a ‘generous and variable interior’. The maker also says it will have a ‘variable space concept’, which we presume means a flexible grand tourer-style boot. Porsche dealers can expect a matching bespoke luggage range for aftersales to flog. Power comes from a range of direct injection V6 and V8 engines. As it’s based on the Cayenne, we can assume these are the 3.6-litre V6 and 4.8-litre V8, the latter offered in non-turbo and 500bhp turbo guise. Both rear-wheel-drive and four-wheeldrive are available. There is a choice of six-speed manual or sevenspeed semi-auto

Burgess Just checking PDK gearboxes. Porsche also plans a hybrid version of the Panamera, which it describes as ‘particularly fuel-efficient’. Worldwide annual sales are estimated to be 20,000. How many of those will come to the credit-crunched UK remains to be seen. Rival makers, including Aston Martin, which has the Rapide rival on the drawing board, will be watching with interest. Meanwhile, Porsche has announced its first ever diesel model will arrive in February. The diesel-engined Cayenne will use a 3.0-litre V6 TDI, producing 240bhp. Average fuel economy of 30.3mpg will be combined with CO2 emissions of 244g/km. This will ensure it does not sit in the top ‘gas guzzler’ tax band.

The most popular stories on our website BORED at work? Then get on t’internet and check out our website! We update cardealermag.co.uk every day with fresh news, features and blogs that will keep you abreast of what’s happening in the automotive industry. In the past month we covered the prebudget report live with a text commentary as the Chancellor spoke in the House of Commons, revealed pictures of the new Porsche Panamera and reported on transport secretary Geoff Hoon’s speech to the SMMT dinner. We’ve also launched a free jobs directory where you can post the jobs in your dealership online completely free of charge – full

CarDealer

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Online at cardealermag.co.uk THE most popular stories revealed first at cardealermag.co.uk this month included: 1. Lamborghini Reventon for UK dealer 2. Diesel Porsche in 2009 3. Audi sales up! 4. Mercedes lobby government 5. State aid for carmakers? To find any of these stories on our site use the search box in the top right-hand corner of the website and type in the red words.

details of this next month. Yet another reason to check out the most exciting website for motor trade professionals!

Are you missing a trick when advertising your stock?

imes are tough, which means you have to pull out all the stops when it comes to selling stock. I’ve been investigating and our latest survey reveals that less than half of dealers we asked are taking advantage of their manufacturer’s website to shift vehicles. Some 94 per cent of respondents admitted they use the internet to advertise stock all of the time and 62 per cent feel the web is a cost effective way to promote the business. So how come so many of you are missing a trick when it comes to kudos and the captive audience offered by the manufacturer’s website? The internet is clearly a much appreciated sales channel and very important to ‘I’m surprised dealers. So I’m surprised so many of you are not so many of using a stock management system or are aware of just you are not how economical it should using a stock be. 58 per cent of those management we asked didn’t know what they currently pay for system or are their stock management aware of how system. Our Manufacturer Stock Locator offers many economical it benefits as standard and should be.’ Lotus is the first to sign up. Chris Arnold, general manager for Lotus Cars, told us he was impressed with the functionality our Stock Locator offers his web visitors, saying: ‘It makes sense for our dealers to embrace HPI’s new stock locator platform. Cost savings and ease of use aside, the fact that they can generate real sales opportunities through online test drive booking and promotion of future stock will be invaluable.’ Despite the economic climate, there are still so many dealers missing out on the benefits Lotus is enjoying. In addition, I am surprised so many dealers do not know what they currently pay. A massive 81 per cent of respondents rated stock management as a key area to focus on, yet many were unaware that features you would expect to pay for were, in fact, free if your manufacturer is signed up to HPI. At a time of economic uncertainty, can you afford to ignore new opportunities that save money and bring bottom line benefits?

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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dashboard PRE-BUDGET REPORT SPECIAL

Thanks Darling, but has he done enough? Richard Aucock and James Baggott report on what the changes mean to you FOLLOWING the Chancellor’s pre-budget report, dealers are waiting to see if the drastic measures translate to sales on the forecourts. Alistair Darling delivered a shock PBR last month which was designed to kick-start the economy as a long recession looms. He cut VAT to 15 per cent for 13 months and the controversial road tax changes have been delayed until 2010. The Chancellor urged retailers to pass on the VAT savings to customers as quickly as possible, and at the time Car Dealer went to press this was happening. Road fund licence increases were also delayed in the PBR, giving motorists more time to buy new, greener cars. And the Chancellor capped increases for ‘gas guzzlers’ at a maximum of £30. Other highlights of the pre-budget report included: • Temporary tax relief for businesses with empty properties • £1bn Small Business Finance Scheme • 45 per cent tax rate for those earning more than £150,000 from April 2011

Tew Net gains Are you catering for growing online car-buying consumers? Darling as depicted in ITV’s Headcases •

0.5 per cent on National Insurance contributions from April 2011 The Chancellor pledged to pump £20bn into the economy too as he forecasts Britain will officially enter into recession in 2009. To pay for the spending splurge, taxes will rise on alcohol, tobacco – and, significantly, fuel. This appears to signal the end of the delay in introducing the fuel price escalator scheme – but Darling hopes the fall in world oil prices will offset any increases in fuel duty tax. We reported on the pre-budget report live on our website – you can read the stories and reaction by entering ‘PBR’ in the search bar at cardealermag.co.uk.

THE REACTION Paul Everitt SMMT chief executive ‘The Chancellor has made a positive first step to help restore consumer confidence and kick-start responsible spending. We now need to see action to remove the constraints on credit and finance so consumers and businesses can take advantage.’

Sue Robinson RMIF director ‘The reduction in VAT means car prices will fall, and could encourage consumers to return to showrooms. The drop will also have an impact on the prices of thousands of other goods and services, leaving cash-strapped households with more money.’

Martin Keighley HPI’s Used Car Valuations ‘It seems unlikely that the prospect of a cut of £425 in the price of a £20,000 new car, combined with the relatively minor impact of the personal tax changes announced, is enough to tempt hordes of buyers back into car showrooms.’

Showroom tax still looms large for new cars SHOWROOM tax for new cars will still come into force in April 2009, the Chancellor confirmed in his pre-budget report. This will impose a first-year road tax rate, for the highest polluting cars, of £950. But the Chancellor has performed a U-turn on the details of the controversial new 13band VED road tax system. The new bands will still come into force in April 2009. However, for the first year, the maximum increase for all cars will be £5. Then, for 2010/11, the maximum increase

CarDealer

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will be capped at £30. Lower-polluting cars will see a decrease of £30 in the yearly rate. Secondhand cars registered after March 2001 will be included in the changes. However, the Chancellor did include a significant proviso. Cars registered between March 1, 2001, and March 23, 2006, and emitting over 225g/km of CO2, will move into band ‘K’. The U-turn means they will have a top rate cap of £215 next year, and £245 in 2010 and will escape the £435 road tax band.

y colleague Martin Hill recently got some excellent feedback from delegates at the EurotaxGlass’s conference. He was there to preset, in front of the packed conference hall (lucky man), our new finance and insurance tools. Why are these important? Well, as he explained, they’re not just important. They’re vital. The recent survey by CAPGemini showed that 44 per cent of customers are likely, or very likely, to buy their car online. When I say that, I mean doing the entire deal online. Nearly half of all customers! And if that’s what customers want, and you’re keen to listen to them, think: why doesn’t it happen today? Simply put, because it can’t. Few ‘Some 44 per websites can allow it to happen. This means that cent of buyers few websites, and few are likely to buy dealers, are catering for their customers. their next car Your website, really, online – that’s should be an extension of your showroom. It’s your nearly half of 24-hour shop, your virtual all customers.’ salesman. You want it to say to customers, ‘here’s all the tools, there’s the car, decide if you can afford it and, once you’ve done that, let us know if you want to buy it’. For new cars, this is a car configurator. This should go through the spec of the car and allow customers to tailor a car specifically to them, with full quotes and prices at the end. But for used cars, this is far more than just posting a listing for the car. You should give full information, lots of images, embed a video showing close-ups of that very car – and, offer a range of finance and insurance products bespoke to that car. Our groundbreaking tools allow you to do this. We have a system so you can show individual finance quotes for every car on your listings, automatically. What’s more, we can also show insurance quotes specific to that model, from four independent insurance providers – and this takes them just 30 seconds. Yes, retail sales are down, but internet sales? They’re up! People don’t know this, but it just shows that your website really is your 24-hour showroom. It’s been a challenging year, but never forget the opportunities. It’s time to be a pioneer. They’re the ones who survive and thrive.

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.

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Henstock Auction stations Digging deep into detail of the typical used car buyer

hile data on the typical new car buyer is sliced and diced by demographic segment, social group and lifestyle expectations, there seems to be little examination of used car buyers who are generally – but not always – treated as an amorphous group, despite generating revenue in the billions for UK dealers every year. Data gathered over the past two decades for the BCA Used Car Market Report shows that the typical used car buyer of 20 years ago is far removed from the buyer of today. Described in the report as a ‘tectonic shift’, the information should prove a valuable starting point for franchised dealers and used car retailers looking to maximise the profitability of their used car operations. ‘Do you stock Surprisingly, younger used car buyers are much cars to attract less prevalent than they were 20 years ago. In 1988, younger the 17-24 age group’s share drivers or cars of the used car market their parents stood at a significant 19.1 per cent, or nearly one used would want car in five. Over the follow- them to drive? ing few years, this dropped steadily until the figure hit a low of 11.2 per cent in 2001. While the market share recovered to 14.6 per cent in 2007, and many of these sales reside in the private-to-private sector, this is a steady fall and a significant change over the period. This raised some interesting questions for used car retailers. Does this mean a genuine reduction in volumes – or are more families buying cars for younger members of the household to drive, possibly taking advantage of an older driver’s’ insurance? Do you stock cars to attract younger drivers or cars their parents would want them to drive? There has been a dramatic fall in the 25-34 age group as used car buyers while the 35-44 age group is still the second biggest buyer. The clear strategic message that emerges from this demographic pattern is that the traditional buyers of used cars – the younger age groups – seem to be migrating to pastures new, while the older sector now forms the biggest single group in volume terms. Any dealer not recognising the importance of older buyers and meeting their needs could be missing out on a lucrative slice of business.

Transport secretary tells industry leaders: You’re indispensable Richard Aucock reports on MP Geoff Hoon’s keynote speech to the SMMT dinner TRANSPORT secretary Geoff Hoon told industry chiefs the government is focused on helping dealers improve their competitiveness and welfare. Speaking at the SMMT annual dinner at the end of November, he said the transport industry was ‘indispensable’ with 850,000 jobs depending on it. And this is why the Chancellor set out measures in the pre-budget report, he said, to ‘rebuild consumer confidence, so showrooms get buyers in again’. As reported on page 13, these included VED and VAT help, alongside the recent interest rate cut. ‘This is a substantial economic stimulus package,’ said Hoon. ‘We will work closely with the industry to ensure our action benefits business.’ Hoon added the government was ‘aware of the industry’s request for financial support’. But, he continued, there is a bigger global challenge – that of climate change. ‘It is a threat we must all take seriously,’ he said. ‘A step change in green vehicles similar to that seen in vehicle safety needs to be seen. ‘If we’re to face up to these challenges, we must work together. The world is changing, and the industry has to change with it.’

Hoon was upbeat though, despite the challenges ahead. ‘The automotive industry is a great industry, that is vital to our economy,’ he said. ‘If it adapts, evolves, I’m confident it will adapt to the global downturn and emerge even stronger.’ Read deputy editor Richard Aucock’s thoughts on car mad Hoon at cardealer mag.co.uk – and click on the Editors’ Blog button.

Vauxhall Insignia wins Car of the Year accolade VAUXHALL’S Insignia has been named the 2009 European Car of the Year, polling an impressive 321 votes. The 59-strong jury of senior motoring journalists from 23 European countries voted the Insignia – pictured below – first, with the Ford Fiesta and Volkswagen Golf coming in second and third respectively.

Who is Simon Henstock?

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

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F L c A w

YourCarMotorInsurance

- An Award winning motor Insurance facility with generous commission paid on every policy - Highly competitive monthly premiums fixed for up to three years - Unique shortened question set enabling customers to quote in less than 40 seconds - Lead generation tool enables follow up of quotations as soon as they are requested - No need to be Directly Authorised under the FSA – We manage this on your behalf - Fully integrate with your existing site or have a branded version to match your corporate identity - Ability to re-direct fault and non-fault accident repair work back into your bodyshop For all YourCarMotorInsurance product enquiries please call Lloyd Latchford on 01844 275 555 or for technical information call Codeweavers on 0870 443 0888. Alternatively email: enquiries@codeweavers.net or visit www.codeweavers.net/yourcarmotorinsurance for further information CarDealerIss10.indd 15

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It’s not all bad news...

Rapp Marketing It’s important to keep the wheels of business turning

s we embark on what may prove to be a challenging year ahead, it’s important to consider how to keep the wheels permanently turning within your business and show customers that you care. Value is the key to future growth and in tough economic times it’s worth assessing the value of all aspects of your business. In the current climate, customers are not just interested in the looks and accessories that a vehicle offers, they want to know how practical and economical the vehicle is when it comes to driving to work, fitting the kids in the back, or taking the dog to the vets. A customer will learn a lot about how much you value their business by your response rates – if you don’t respond promptly to enquiries, customers will simply go elsewhere, so it’s important to have welltrained sales staff from the outset to help put your buyers at ease. Advertising on portals such as Motors.co.uk will strengthen the value of your business online as your stock will gain maximum exposure across a network of more than 100 sites that include Yahoo! Cars, Carsource.co.uk, Carsbymail. co.uk, Teletextcars.co.uk, Fifthgear.co.uk, Desperateseller. co.uk, Independent.co.uk and Dailymail.co.uk. How you present your stock is of equal value. The price, quality of spec and in particular, imagery, will need to be of the highest quality. After all, good quality photos will guarantee four times the response rate, with video increasing your leads six times over. Now is the time to look carefully at the portals which you advertise on and ask yourself what they do to promote your business. Motors.co.uk offers a variety of packages to give businesses maximum exposure to include, Brand Showcase (exclusivity within your postcode area), Chat to Dealer, (an opportunity for customers to chat directly with your sales staff), and the opportunity to profile your stock using the latest video technology. So, with eight out of 10 people turning to the internet to look for their next used car, why not show your customers how valuable their business is?

‘If you don’t respond promptly to enquiries, customers will simply go elsewhere.’

Who is Helen Rapp? Helen is UK product manager for Motors.co.uk. For details of the services Motors can ofer motor traders you can call 0845 265 5502

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Richard Aucock reports on EurotaxGlass’s web conference Those expecting doom and gloom at the annual EurotaxGlass’s Driving Business conference were pleasantly surprised. The mood inside the National Motorcycle Museum was one of concern, but also hope. Dealers were not resigned, but keen to hear how they could, well, drive business forward. That’s just what they got from a superb line-up of speakers. Chaired by EurotaxGlass’s president Kevin Gaskell, he gave the background. Sharpest recession in 20 years, according to Mervyn King – ‘and I don’t think even he really knows.’ It’s that unpredictable. Plummeting car prices have made it worse. But, he added: ‘While it’s going to be a time of change, it’s also a time of opportunity.’ Particularly for those who, said PriceWaterhouseCooper’s Chris Kent, do what they currently do, but better. ‘Makers recognise the importance of dealers, and therefore will support,’ he said. ‘Without you, they have no shop window.’ The threat to dealers, he underlined, was banks cutting off supply to businesses with too thin a capital base. But even here, he said, there were opportunities. Where? ‘Acquisitions,’ he said. ‘So how do you avoid being prey? Look at your balance sheet. Drive out your debt sources. Realise the cash in your stock. And, be more innovative in your marketing.’ Bear in mind what you should be marketing, said Frank McCaffery, MD of Exchange & Mart. Half of customers are looking at better economy and lower tax cars. More generally, 41 per cent of people change their car at least every three years, with a fifth changing every year. Don’t forget, though, that while 70 per cent are adapting to the changing environment, a third still ‘want what they want – with no ecological or financial pressure’. Remember that automotive is the second

highest performing sector on the internet too. That’s according to Google director Adrian Joseph, who pointed out this was the first time the digital arena had experienced a downturn. How will customers react? By, he said, spending more time on the internet than reading papers. Well, that’s what 85 per cent of them plan, anyway. Do your marketing budgets reflect this? Or the near-70 per cent who begin their new car research online? 41 million Brits are now online, and 59 per cent have broadband. Seven hours a

‘I don’t think even Mervyn King really knows what the recession holds.’ Kevin Gaskell, EurotaxGlass’s president week is the average online time. If you don’t have an internet presence, you’re stuffed. And if you don’t consider search in designing your website, you’re doubly stuffed. And if Google is the world’s biggest search engine, YouTube is the second-largest. Amazed? So was the entire conference when that was revealed. Codeweavers’ Martin Hill spoke of a web utopia. You’ll engage customers as they research. Make it a stress-free, integrated web process. Increase the time they spend on your site and push up sales enquiries and increase F&I awareness. The latter has seen much work by Codeweavers, who have developed the ‘next stage in retail finance process’ – as Car Dealer columnist James Tew explained on page 13. To read a longer review of the Glass’s event search for ‘Web Conference’ at cardealermag.co.uk

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w w w. m o t o r t r a d e - m a i l . c o m

WE’VE SPENT MONTHS COMING UP WITH AN ALL-NEW SITE - DESIGNED TOTALLY BY YOU! Dealers told us they wanted to trade commercial vehicles, caravans and motorbikes as well as cars on our site - so now you can! You don’t have to be a geek to use the site - it’s as easy as email and with a TWO WEEK FREE TRIAL there’s no excuse not to have a go. There’s no better way to get MORE money for your part exchanges. Check out the site at www.motortrade-mail.com or call us on 020 8800 1118

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Catalogue’s got the lot

Looking to give your site a revamp? Then an all-new catalogue for the motor trade is your one-stop shop WANT to give your forecourt a refresh? It’s a sure-fire way to draw attention to yourself, and any means of luring customers in is essential at the moment. Which makes Direct Supply’s 2009 catalogue launch more than timely. Boss David Lane has gone all-out to get the listings in early, so customers can pick and choose, from a huge array of flags and poles, to more innovative signage, decals and banners. Lane’s guided by two principles – the products have to be automotive industry-specific, and offer true value for money. ‘We recognise that this is essential if we are to retain our relationships with independent dealers, franchises and manufacturer groups,’ he told Car Dealer.

They’re relationships that have been building since the company was set up seven years ago, in Bishops Cleeve, Gloucestershire. It’s now considered a leader in the trade, from the smallest to the largest dealer groups. And it doesn’t just sell forecourt display units, but also specialist tool brands Power Start, RakJak, Golak, Steelman, Chassis Ear, Power Hand and Metrinch Tools. A recent development is being appointed the sole UK supplier for AHB International. Who? Only one of Europe’s leading traders, with 25 years’ experience and distributors in 30 countries. ‘Its purchasing power can save dealers money,’ promises Lane. But it’s the forecourt products

that really set Direct Supply apart. The company has an in-house sign studio and investment in new print technology allows it to print fullcolour graphics on to a wide range of substrates. Both the 2009 forecourt display brochure, and the AHB International catalogue, are free. Call 0845 360 2607 to get yours now.

Ford’s U-turn with 2wd Kuga FORD has released a model it initially said it would not – with economy and ecology heralding the U-turn. The Kuga 2WD 2.0 TDCi is a front wheel drive version of the company’s compact SUV. The new off-roader’s biggest draw is favourable CO2 emissions of 159g/km. This places it below the 160g/km threshold that many company fleets will be focusing their policies on. It ensures Ford will not be excluded from company car user-chooser lists. As it emits less than 160g/ km of CO2, it is eligible for a 20 per cent write down allowance against corporation tax. The existing Kuga 4WD 2.0 TDCi exceeds this band, and only has a 10 per cent write-down allowance. Prices for the new Kuga 2WD start at £18,595 for the Zetec variant.

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CarDealer 5/12/08 10:29:18

‘We steer buyers to you!’

Sell cars online at

Sell more cars. Over 2.7 million visitors per month. Track leads. Brand showcase. Link to your website. Content on 100 other websites. Take control. Sell on the worldwide forecourt.

To find out more or to advertise your stock call 0845 265 5502 or email sales@motors.co.uk CarDealerIss10.indd 19

You take the wheel ™

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dashboard

Harrison Training matters

Showroom finance is enjoying a resurgence

t is impossible to open a newspaper and not be confronted with the credit crunch as the UK battles unprecedented economic conditions. Interestingly, despite some commentators’ view that the car industry is a good indicator of current economic health, it took almost 12 months for the downturn to fully impact the industry. While new car registrations have fallen sharply in recent months, the Finance and Leasing Association (FLA) – which represents motor finance providers – has actually seen an increase in the market share of consumer finance sold in dealerships. New car point-of-sale finance penetration has steadily increased from 47 per cent at the end of 2007 to 52.6 ‘Point-of-sale per cent in September as consumers find it diffinance has ficult to secure funding increased from elsewhere. This is a huge opportunity for dealers 47 per cent at that can provide car buyers with a range of competitive the end of 2007 finance products to meet to 52.6 per cent their specific needs. in September.’ In difficult times, improved professional standards can make all the difference and the FLA’s Specialist Automotive Finance (SAF) initiative is here to help. SAF aims to raise consumer awareness of dealer finance by improving dealer staff knowledge. Our online SAF competence test assesses knowledge of the different finance products in the showroom and the related regulation. It does not teach staff how to sell finance. If a candidate passes the test they are able to print off a certificate of SAF competence to talk to customers about their improved standards. The best news for dealers is that the test is completely free-of-charge. Since launching the SAF test in October 2007, more than 5,700 industry professionals and 530 dealer outlets have registered including 12 of the Top 20 dealer groups. Candidates must retake the SAF test every 12 months to ensure their knowledge remains up-to-date. Please ensure you retake the test as we are continually updating the questions. In future issues I’ll be updating you on the FLA’s exciting new plans for SAF. In the meantime, make sure finance is discussed with every showroom visitor.

Who is Paul Harrison? Paul is head of motor finance at the FLA. Find out more at www.specialistautomotive finance.org.uk or call 020 7420 9613.

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PICTURE: THE NEWS, PORTSMOUTH

Solent Group collapses

This transporter turned up at Solent Mazda full of cars the day after the group closed SOLENT Motor Group has gone bust with all of the firm’s outlets shutting their doors for good at the end of November. Solent Citroen, Solent Nissan, Solent Mazda, in Portsmouth, and Petworth Car Sales, in Petworth, have all closed. Vehicles at the garages were taken away and staff and customers turned up to find notices on the door telling customers it was going into administration. A statement from the directors at Solent Portsmouth Ltd said: ‘It is with regret and sadness that after 16 years of trading in Portsmouth we have had to close the business. This is due to the current economic climate in which the motor trade seems to have been hit particularly hard. ‘We have tried over the last few months to save the business and protect the jobs of the 73 staff by restructuring the business and

Audi sales on the up despite economy AUDI expects to sell 101,000 cars in 2008, making it a record year for the maker. This will break last year’s total of 100,000 models – and be the latest in 17 years of growth for the brand. It comes despite the credit crunch. Audi is one of the few makers to not suffer sales falls in key months.

SMMT sales figures, p65

making drastic cost cuts, but this has proved to be unsuccessful. ‘Our feelings go out to all our staff, their families and our customers at this difficult time – this is not a decision that was taken lightly.’ Richard Skuse, 21, a mechanic at the Nissan garage, told the local paper, The News, on the day the garages closed: ‘I came in this morning and I don’t know anything. I’ve been working here about seven or eight months. Some people found out by phone last night, but they didn’t call me. ‘It was pay day today and none of us have been paid. I’m not holding out too much hope of getting the money.’ This story was first reported on our website before any other trade title – stay up-to-date with the motor industry at cardealermag.co.uk

Video key to online sales DEALERS are failing to capture the majority of cost-effective sales opportunities via the internet. Motors.co.uk analysed the top 10 most popular searches from 2.7m unique users and discovered dealers including video footage in their advertisement got six times the level of enquiries. But despite this, only 10 per cent of dealers are currently using video. Simply including photographs saw a doubling in the number of enquiries, but even this medium is not fully exploited by dealers. Katie Armitage, pictured, marketing manager for Motors.co.uk, said: ‘Our research has shown just how powerful the use of video can be online. With video, customers have already seen the car they want to test drive, and so, when they reach the dealership, they’re already serious buyers.’

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big mike

Billy Two Bags has got it right – a fixed price lot... I

sn’t it funny how, when it comes to choosing a used car, you suddenly start to consider models that you wouldn’t have touched with a cattle prod when they were new? And isn’t it odd, too, that there are a good many motors that sold in their droves when new, but as a used car dealer/pre-owned carriage specialist you know has now become fearsome forecourt fodder. Peugeot 406, anyone? Or what about the most recent Nissan Primera – a car that in it previous incarnation would be snapped up by an eager mini-cabber within minutes of reaching your lot, but for reasons of complexity and fragility tends to fester unsold for far too long in third generation form. Renault Laguna? Well, let’s just say the last conversation I had with one went a bit like this: ‘If you lie to me once more about your bloody tyre pressures you bing-bonging French git I’m going to drive you into a bridge parapet.’ For cheap transport, punters should really look Like the inlaws at Christmas, Big Mike finds the latest Primera hangs around a little too long at cars that nobody wanted when new, and nobody wanted used, either. If you’re good at your able stock I spied a 51-plate Citroen Picasso, an out there at the moment, and while times may job, then chances are you drive one of these, or 02-plate Mondeo LX, a Y-plate Mk 4 Golf and be tough at all ends of the motor trade, it’s at least let the missus smoke around in one. even a 51-plate Zafira – all good solid stock in the bargain basement where I believe there’s I, for one, certainly never had a picture of a days of yore, but which, price-wise, have gone real scope. And for evidence, you need look no Nissan Maxima on my bedroom wall nor colthe way of the suburban semi of late. further than my old mate Billy Two Bags. Bill’s lected all the brochures, yet during my career I This Christmas, there are going to be some nickname comes from what’s almost a fixed price owned and loved six of them – cracking motors, crackers in the classifieds, and also a load of pudapproach to car sales. If it’s on his lot, it’s up at nobody wanted them, they never broke down dings. If you’ve got a used Scorpio, for example, £1,995 (two grand, two bags of sand). and you could write them down for peanuts save the advertising cost and scrap it while the Three years ago, Billy was selling Omegas and when the disgruntled customer came in for a Chinese are still recycling steel. Scorpios, as well as sub-prime finance packages trade-in quote, yet still not lose the deal. If you can afford to keep buying, stock up to people who, thanks to his charm offensive, Vauxhall Omegas, Ford (quick, hide, it’s comnow while the silliness lasts, because as soon as were convinced that an ex-Motabiliy Citroen ing to get you…) Scorpios, Rover 800s ditto, the next bird flu epidemic, ill-advised military Xsara automatic was the answer to their motorbut without the clockwork reliability (it didn’t skirmish or celebrity divorce hits the headlines, ing prayers. matter, because as soon as they conked I always the media focus will divert away from crunchy Now there’s no sub-prime finance to sell anypulled them to bits and flogged the parts on credit and we’ll all stop panicking our arses off. more, Billy sells cars to people with real money, eBay). As for the Mitsubishi Galant. Well, I love At least I hope so as, on current form, there’s not and as their choice is based on what cash they ‘em, and can’t help but think they’re curiously a lot for us motor traders to smile about. Have a have in their bank account rather than what an pretty too, yet nobody goes near them. Funny peaceful end to the year all, and let’s hope the optimistic computer thinks they can afford per old world. new year brings with it a new found optimism! week, they tend to have higher demands. And Still, I digress. With the over-hyped Credit that’s really put the squeeze on residual values Crunch Christmas coming up (give the media an of older models. Bad news if you’re looking to Who is Big Mike? Well, that would be telling. What inch of alliteration and they’ll grab themselves a sell in the £3-£10k market, but great if you want we do know is he’s had 30 years in the car trade and AT063_CarDealerQtr_Gee 24/11/08 17:19 Page 1 picked up some seriously funny tales along the way. mile…), there are some incredible used bargains to shift cheapies. Among Bill’s perfectly respect-

“I talk to dealers across the UK every day and appreciate how difficult it is at the moment. Perhaps we can help in a small way?” Gee Pugsley

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Grow your business with the award winning new SsangYong range. ‘It will work for you’ Under new ownership, SsangYong in the UK are relaunching the brand with a new award winning range of competitively priced 4x4s and MPVs backed up by a multi million pound marketing campaign. To support this investment they are looking to recruit entrepreneurial dealers who can help form part of a successful national sales network. Become a SsangYong dealer and benefit from: t An innovative dealer development programme that will help you make more, sell more and deliver a better customer experience t Low cost of entry t Business driven achievable franchise standards t Extensive local marketing support including a new dealer web portal t A full programme of after sales support covering competitively priced parts, warranties, training and technical support t A comprehensive used car programme t All backed up by generous dealer commercial terms

Find out more The pulling power of the new Rexton

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Call Ian Nicholson on 01252 619100

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5/12/08 10:29:24 3/28/08 12:24:31 PM

special report

Q. Were you in business between April 1973-1997? A. You could be in line for a VAT windfall of £720k! It’s not often the VAT man gets it wrong, but he did and now the deadline for claims is fast approaching

as your franchised dealership in business between April 1973 and 1997? Did it used to run demonstrators, courtesy cars or self-drive vehicles? Then you could be eligible for a payout. It won’t cost you a penny to find out – and the sums you could claim back? Well, as we’ll show later, they’re truly eye-watering! But you have to be quick. You only have until March 31, 2009, to claim. What is all this we’re on about? Cue Car Dealer’s friendly tax expert to explain... Baker Tilly’s Ross Bartholomew is the guru behind it. An ex-VAT inspector himself, he’s specialised in cars for the past decade with the chartered accountancy and business advisory services firm: ‘Part of my job is to look for niche areas that can benefit various trade sectors.’ That’s just what he’s found here. In the mid-1990s, HM Customs and Excise decided, overnight, that if any business thought they’d overpaid on VAT, then backclaims would only be considered going back for three years. Any more than that, tough. ‘This was wrong,’ says Bartholomew. ‘There should have been a six-month transitional period.’ Think demonstrators, with an element of private use, or courtesy cars. Say you brought one for £10,000. Sold it for £12,000. Your profit? Easy – £2k. Between 1973 and the mid 1990s, businesses were paying VAT on that £2k profit margin. But this, says Bartholomew, was wrong. ‘Businesses shouldn’t have paid any VAT,’ he explains. So, for over two decades, businesses were incorrectly paying Customs money they shouldn’t have – on most demonstrators, courtesy cars and self-drive models. It gets better. Say the manufacturer was offering bonus incentives for demonstrators. That £2k profit margin could be boosted to £3k if the maker was feeling generous. Again, back in the day, VAT was accounted for on that full amount. Again wrong.

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Baker Tilly’s VAT expert Ross Bartholomew In short: ‘Pre-1997, dealers shouldn’t have paid any VAT on profits, nor on associated bonuses, for demonstrators. And, pre-September 1992, the same applied to courtesy and self-drive vehicles.’ Customs, however, didn’t fully clarify this to dealers until mid-1997. Which coincided with that contentious three-year limit! As it was something that affected all businesses and not just those in the motor sector, the matter wasn’t taken lying down. An appeal on this was sought, and resolved by the European Court of Justice in 2002. A ‘transitional’ period was reinstated, and most dealers were able to claim back all the VAT they’d overpaid: ‘By going back in an imaginary time capsule and reviewing their business affairs prior to 1997,’ says Bartholomew. Guess what, though. Customs got details of the law wrong again, even then. Long and short of it? The grace period was extended. And, on March 30, 2009, it’s up. Once and for all. Yeah, yeah, you’re thinking. Why should I be interested in a few quid dating back years? Because, says Bartholomew, it’s not just a few quid we’re talking here. ‘It’s not unreasonable, for those holding a franchise from 1973 to 1996, to claim back £150,000.’ Splutter that tea. But don’t choke just yet. ‘As

Customs got the law wrong, they also have to pay interest on that amount – and that could easily be an extra £180k.’ He explains to a choking Car Dealer writer. Then he hits us with the hammer blow. ‘We still don’t think that’s good enough. Simple interest is not enough – we’re arguing that, if dealers had been able to use that money, they could have grown their business much more than simple interest would pay.’ He therefore wants compound interest. And that could be worth up to £720,000 using the above example! The grounds for contacting Bartholomew are plain. ‘Ask yourself if you could be eligible. I can soon see if we can get money back for you. And, even if you have made a claim, it’s still worth getting in touch, as developments since 2003 mean some elements which were previously reduced have now become repayable.’ Amazingly, you don’t need any records. You’re only required, by law, to keep them for six years, so Customs had to accept that people wouldn’t have them dating back to 1973. It’s therefore quite willing to use a formula of approximation, based on average prices, profits and margins. So long as you were in business, and make a sensible, justifiable claim, that really is it. The business doesn’t even need to still be running in many cases, so long as it was back then. ‘And it doesn’t give Customs carte blanche to revisit old records,’ he says. ‘It’s a one-way ticket – only the taxpayer can revisit.’ To do all this, though, you need a highly specialised tax advisor. That’s where Bartholomew comes in. ‘There are only a handful of leading practitioners in the country with the specific skills and knowledge to do this. It can take some time before Customs can be persuaded to pay claims – but I will only bill on what you can get back and only when you have received it. Believe me, there really is no downside.’ It is an incredibly tantalising prospect, that Bartholomew says ‘hundreds of dealers could still be eligible for.’ Hundreds, he says! Could you be one of them? If so, there could be 720,000 good reasons to give him a call on (01284) 763311...

CarDealer 5/12/08 10:29:24

[RUNNING OUT!] BUT TIME IS

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alifornia

on’t be confused by the hype. The California is not the new entrylevel Ferrari. Indeed, it’s actually more expensive than the existing F430. Bang goes the modern-day Dino replacement we speculated on when rumours of the new model first started to surface. No, instead it is the ‘approachable’ way into Ferrari ownership. We mean that not only in terms of price – yes, it’s dearer than the F430, but not significantly so – but also through focus. You see, the F430 is one of the most extreme supercars you can buy for the

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reaming Words: Richard Aucock | Pictures: Ferrari

money, much more hardcore than a Porsche 911. Dealers reported that even some existing Ferrari customers were finding it a bit too much, never mind the new clientele the maker is so intent on attracting. That’s why, with the California, we have something very different indeed. It’s a significant model, which in many ways is really a revolution for the Italian maker. It has a folding hard-top, for example, like a Mercedes SL. It has a folding rear seat, too, and a direct fuel injection engine – goodness, it even has a dual clutch

transmission, the sort you’d find in a VW Golf. Yes, the styling in places does hark back to the famous original California – check out the bonnet air scoop and front wing gills – but is the modern-day interpretation a marketing step too far? Will the three-year-strong order bank of customers, a higher proportion of which should be women, be disappointed? Oh no. One thing, above all, convinces you not. The astounding noise its 453bhp V8 makes – the howl from the all-new engine is simply stunning. Performance is explosive and the thump in the back >

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It’s the first drop-top Ferrari with a folding metal roof, but has the California lost its edge by pandering to the masses? No chance...

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when you change up – accompanied by a sharp exhaust crack – is totally intoxicating. It’s easy to access too, thanks to the all-new dual clutch gearbox. This is best driven with the paddle shifts, and is smoother than the F1 transmission in other Ferraris. It also changes gear almost instantaneously: there’s simply no perceptible delay. It’s astounding. Rather like the brakes. They’re carbon ceramic anchors that stop the California with real assurance. ‘But’, you’re thinking, ‘going fast is one thing, but how is this GT Ferrari through the bends?’ Simply exceptional, is the answer. Immediately obvious is a compliant ride quality, that helps you really exploit the pace of the engine even on pot-marked roads. This may cause you further suspicions… until

you reach a corner. The California corners extremely well indeed. The familiar Ferrari stability and traction system, called F1-Trac, appears here with the famous steering wheel control knob. Even in Comfort, it will kick the rear wheels just out of line. In Sport, lots more oversteer is possible, yet with the full back-up of electronic control should you need it. It’s only through having such faith in the basic talents of this chassis that Ferrari is able to push the boundaries like this. And it’s faith well placed. You can have faith in the car’s ability to be relatively green, too: it has a combined average of 21.5mpg, which, given that this is a very fast Ferrari we’re talking about, is quite something. CO2 emissions of 306g/km are low-

er than many SUVs. And few of them sound like this. Then you get on to the bits Ferrari always does well: the interior has superb seats and is extremely stylish. The folding roof is clever, and its speed makes the trade-off of a slightly heavy-looking rear end worthwhile. The rear seats fold, so the boot is surprisingly big, and the details smattered throughout the interior – well, they’re simply delightful. All told, the California is breathtaking. It’s not the car we expected, but is all the car we hoped for, and so much more. The shift in emphasis hasn’t spoiled it – if anything, it’s made it all the more compelling. So much so we wouldn’t be surprised if some even defect from the F430 into it… and that really would be confusing. But totally understandable. [CD]

Ferrari California Price: £143,320 Engine: 4300cc V8 Power: 460bhp, 484Nm 0-60mph: 4.0s Max: 193mph Ins: Group 20

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cult safe cars voice

Advertising feature

Why you should listen... A revolutionary call recording system is not only improving dealer productivity, but keeping them safe. Here’s why you’ll want it for your dealership...

s a dealer principal it’s hard to keep track of everything that’s happening in your showroom – let alone worry about what sales staff are saying on the phone. However there is a solution – Voice Safe. It’s an intelligent call recording system and, according to director of the company Paul Cleverly, it can save dealership directors from big trouble. ‘We’ve discovered examples of sales people on the phone describing £30,000 Audis as “a clocker’s dream” while in one group several members of male staff at various outlets were sexually harassing the group sales administrator at the main centre,’ Cleverly told Car Dealer. Call monitoring using VoiceSafe soon revealed these incidents, along with others that, while less disturbing, were still having an effect on dealers’ bottom lines. The system’s ability to display the top numbers called from, or to, each phone at the dealership, whether the top 10, 50 or 100, has proven particularly illuminating. ‘We discovered a business manager in one company was receiving six to seven hours of calls a week from one single number, and when we checked the number out it turned out to be his wife calling – for six to seven hours a week he wasn’t working for the company,’ said Cleverly. These may be extreme examples, but the VoiceSafe chief points out that the system has proven very effective in more basic ways, improving the professionalism of the business. ‘We piloted the system with six dealerships and one of the first things we discovered was that 11.7 per cent of their incoming call traffic was not even being answered,’ he explained. ‘They had spent good money on advertising yet they were immediately losing 12 per cent of the generated leads by simply not even talking to them.’ By simply recording and analysing the call traffic at their centre, dealers have been able to improve the professionalism of their staff and increase productivity. ‘The system cuts the traditional bull-factor that sales departments have long been renowned

VoiceSafe lets us check and clarify CALLING Andrea Foster at Town Centre Citroen, we’re greeted with a message, saying our call may be recorded. Then, while the call’s transferred, we’re treated to ads, telling us all about the latest offers from the Sunderland dealership. ‘They’re changed every month,’ says Foster, who reports Voice Safe has

proven very advantageous for their needs. ‘For training, it’s great, and has helped improve telephone standards. It’s also great for customer service. Where customers say, “you told us this on the phone”, we can go back and clarify. ‘Sometimes, too, when people are ringing up for

for,’ added Cleverly. ‘Quite quickly 100 outgoing sales calls can be turned into 200.’ VoiceSafe uses an entirely web-based interface, enabling management to listen to calls from anywhere on its network that has an internet browser. Staff response to calls can be monitored and training improved as a result, while the staff themselves can listen to calls they have taken to confirm such aspects as address details and crucially any commitments they might have made to the customer. Cleverly adds that dealers are seeing a whole range of benefits from VoiceSafe, and at surprisingly little cost, particularly if dealers make

advice, it’s hard to write everything down. Voice Safe enables you to go back and clarify things.’ Town Centre also runs Close It, and has integrated Voice Safe with the system. ‘This is a real benefit,’ says Foster. ‘Every customer has a contact page and their phone calls are stored. It’s easy to review calls.’

use of yet another feature which allows outgoing calls over a mobile phone network, dialling out via a SIM card and saving the dealer great amounts in call charges. And he thinks analysing the true effectiveness of a dealer sales force is something that is overdue. ‘Dealers have been monitoring productivity in their workshops for years but the sales department have been getting away with it,’ explained Cleverly. ‘In these days of ever more difficult sales environments the best productivity is ever more essential and VoiceSafe offers a highly effective way to achieve this, at little or no cost to the dealer.’

FOR MORE DETAILS ON WHAT VOICESAFE CAN DO FOR YOU

0845 421 5050 | VOICESAFE.CO.UK CarDealer

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“I talk to dealers across the UK every day and appreciate how difficult it is at the moment. Gee Pugsley

Perhaps we can help in a small way?”

“By 9 o’clock this morning I have bought two cars from the system which are sold units, we have done 6 cars through Autotrade-mail month to date, the system is a delight and has allowed us make contacts nationwide, open avenues and I do not know how we ever did business without it.” Tom Rawlings, Group Buyer, Dales Group, Renault, Suzuki, Mitsubishi, Seat November 08

Call us on 0870 2000 848 for your FREE two week trial and experience the full range of Autotrade-mail subscriber benefits before investing in your £40 monthly subscription. The UK’s leading online “real time” used-car trading network CarDealerIss10.indd 30

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VW Scirocco £22,270

ool

as the Scirocco ever really cool? It may have been when first launched, back in the 70s, but the Golf GTI followed a few years later – and in creating an entirely new, must-have hot-hatch sector, effectively stole the Scirocco’s cult car thunder. It dragged on, updated but essentially unchanged, for nearly two decades, before quietly being forgotten. How dare we treat it so badly! For now, it’s back, meaner and moodier than ever before. Back with a bang. It still uses Golf bits, not least the 197bhp engine, but has a presence it has lacked since the very first model hit our streets. This thing is bad. And very, very cool. The Car Dealer test model came in the colour to have at the moment, lime green. Set off by huge turbine-style alloys, and with the GT model’s standard darkened rear glass, it was very striking. Low, long, wide, with hunched wheelarches and a stand-out stretched window and roofline, it was more like a slammed slot car than a four-seater. What’s more, the nose is pointy and menacing, paying homage to the original. Inside, the outside’s bling makes way for moody black. It’s dark, particularly the leather-clad GT (the ribbed hide looks great, though). It’s as per an Eos up front. The interest comes in the back. There, two seats sit, yielding – get this – space for adults. Yes, this is a genuine four-seater, and a comfortable one, too. You won’t believe the space in the back of a Scirocco, nor the depth of the useful boot. There are doubts, however, that it’s erred too much towards comfort, despite the looks. For a

CarDealer

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gain?

The legendary Scirocco was the forgotten sibling to the Golf GTI first time round – but now things are different coupe it has a fantastic ride and GT models get standard electronic dampers with two settings – Sport and Comfort. Don’t bother with Sport, as it’s far too jiggly and unsettled. Instead, savour the absorbency of Comfort, soaking up all but the deepest potholes. The 2.0-litre turbo is refined, responsive and fast; and mated to the brilliant DSG gearbox, going quick could not be easier. Indeed, the high-rev vim of the Scirocco is far more vigorous than any Golf I’ve experienced. This is a quick bit of kit, but very easy with it. Indeed, over-light brakes are probably too easy – the pedal is dead – and the steering is twirlingly easy without being edgy. Hmm. This was odd. So, in good Car Dealer

tradition, we turned the wick up. And the Scirocco came alive. Flowing across awful B-roads with total composure, it was incisive, alert, composed, had bags of grip and a planted, heavyweight feel. Chuck-able without vice, the limits are high, but so is the involvement. Best of both worlds? You bet. But do you know what’s coolest of all? Prices. VW could charge the earth, but instead they want £20,940, or £22,270 for our DSG model. Golf GTI money, in other words. No wonder VW dealers took 700 pre-orders even before launch, and are now quoting a 12-week waiting list. The Scirocco is, at last, cool enough to be hot property. RICHARD AUCOCK

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greatest drives Learning to love driving again isn’t hard, all you need is a quiet road and a Bentley... Car Dealer’s editors take a road trip in a GT

hen was the last time you just got in a car and drove somewhere? I’m going to bet it was some time ago. Remember when you were young and had just passed your test – if you were anything like me you’d just get behind the wheel for the sheer hell of it. Perhaps it was escapism; the feeling of being free with no one telling you what to do, how loud to have your music or where to go. I remember the night I passed, I did exactly that – headed to my mate’s house, picked him up and hit the road. Only hours before I’d persuaded my dad to insure me on my mum’s white Peugeot 306 1.9-litre XND, and as I sat in a two-mile tailback out of town I couldn’t have been happier.

10 years later, it’s Sunday evening and pouring with rain – and I’m stuck in a very similar traffic queue on my way to see that very same friend. Years of commuting; years of taking the car for granted may have numbed my joy of driving, but not tonight. Tonight I’m going to relive the spirit of my youth and find that lost enthusiasm for simply driving an automobile purely for fun. It helps that I’m in good company. This time I’m not crawling along in the old dear’s smokey old diesel – no, this time I’m behind the wheel of one of the iconic cars of the decade: the Bentley Continental GT. Yes, it’s image may have been tarnished by those prancing footballers that seem to be attracted to the GT like magpies, but I’m not

going to let that bother me. One thing’s for sure though, although I hate to admit it, those Manchester Rovers boys certainly know how to pick a beautiful motor. The GT really is a stunning machine – even five years after launch, it’s not looking any less gorgeous. That gaping front grille and twin-eye headlights may have been copied by lesser manufacturers, but they give the Continental serious presence. And the sheer size of the car takes you by surprise too – this may be the ‘baby Bentley’, but it sure isn’t a tiddler. The rain is bouncing off the bodywork as we creep out of town, slowly plotting a route towards the more exciting roads that lie at the end of this line of cars. Inside, I’m surrounded

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cardealermagazine.co.uk Relieve the boredom and log on to our site for daily news updates, editors’ blogs and exclusive online content PLUS! Post FREE job adverts on our all-new motor trade recruitment listings board CarDealerIss10.indd 32

TOP FIVE STORIES ONLINE NOW: 1. Lamborghini Reventon at UK dealer 2. Diesel Porsche in 2009 3. Audi sales up! 4. Mercedes lobby government 5. State aid for carmakers? 5/12/08 10:29:34

by polished wood, chrome and leather – it’s like driving the Ritz. It probably weights the same as the London hotel too. It’s still a comfy place to be. Huge, multiadjustable heated seats are slow-cooking my internal organs and helping me relax. I’m enjoying the calm before the storm. It’s the Sunday before fireworks night and all around me, undeterred by the rain, chavs are lighting up the sky with rockets. It doesn’t seem the credit crunch has stopped people setting light to their money... Those rockets are a fitting start to what’s about to come. Describing the GT’s unending reserves of power as explosive might sound a little trite – but my word is it apt; the firepower this Bentley bruiser’s hiding away would put Iran to shame. The 6.0-litre, twin-turbocharged W12 engine is capable of firing it to 60mph in 4.7 seconds and then on to 198mph. It might be a little Chris Moyles in lardiness, but don’t think that’s going to hold it back – those figures put

‘Yes, its image may have been tarnished by footballers, but one thing’s for sure, they sure know how to pick a beautiful car.’ it on a par with Porsches and Ferraris. Half-an-hour in, the traffic is starting to ease and I point the good ship HMS Bentley towards the countryside. Just 10 miles from our Gosport HQ we’re fortunate to have a spider’s web of real driver’s roads. The Meon Valley is littered with testing stretches of asphalt that bisect the stunning scenery and we’re heading straight for them. We start on the A32 towards Alton – it’s a fast stretch of road, punctuated by long straights and blind corners, that over the years have been given their own nicknames just like the Isle of Man TT course. Unlike the Manx isle, though, this stretch does have speed limits, but that isn’t going to stop me enjoying the GT.

Rivers of water are dripping off the fields at sporadic intervals, but the heavyweight GT ploughs on through. This is by no means a sportscar, but it’s still incredibly enjoyable to drive at speed. The steering is not alive or as full of feedback as, say, its arch-rival the Aston Martin DB9, but it’s reassuringly direct. The GT is perfectly planted too – four-wheel drive keeps everything in check and it never once gets out of hand or lively, even in these treacherous conditions. Never have I travelled in a car that isolates you from the feeling of speed so well. Whether that’s a good thing or not is open to question, but on more than one occasion I look down at the speedo and am shocked at the figures displayed. The double thickness windows and insulated cabin make journeys a serene affair, that’s for sure – it’s not completely silent, but about as good as it’s going to get this side of a Rolls-Royce. >

Bentley Continental GT

Greatest Drives

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greatest drives

As the miles increase, it becomes clear Hampshire’s entire road users were stuck in that strange Sunday evening traffic jam as the country lanes are completely devoid of cars. Riding a colossal wave of torque I’m stringing together one straight after another, in a state of driving nirvana – and loving every minute. Well, that is every minute not spent braking. That’s because whenever you call on the stop pedal to bring proceedings to a halt you can’t quite get over a feeling of dread. When you’re in a car that’s heavier than the moon, stopping becomes quite a complex procedure and you can really feel the weight of the GT as it sheds those licence-losing figures. As the Continental shrugs off the speed that was all too easy to achieve, you become instantly aware of the forces of nature at work and they’re ferocious. As quickly as the fun began, it’s over. Mudcovered tractor routes make way for the dual carriageway of the A3 and I’m soon heading back towards the coast. I re-engage brain and cruise control, and the big Bentley begins to make even more sense. Wafting along, completely isolated from the outside world, the Continental dissolves 30 miles and I’m pulling up at my friend’s flat before I know it. We head for the royalty of fast food establishments and watch from the empty diner as water evaporates off the bonnet. Over onion rings and fries, the same question asked after

Ah, the scourge of the cynical motoring hack. Bentley Continental GT Speed, aye, I thought, glancing at the press release. Bit more power, bigger wheels, quilted leather – surely a marketing stunt, no more. I wear hats. Good job I didn’t make any promises about eating it, following a drive in the Speed, then. Because, a few weeks ago, three of the best hours of my life were spent behind the wheel of one. The evening before, I’d got a taste of the detail that had gone into it, from powertrain boss Brian Gush. He explained how, actually, many elements of the Speed really were bespoke, from the electronic profile of the gearbox, to the setup of the electronic

...the GT Speed’s a bit special too suspension – even down to the noise the exhaust makes. ‘Switch it into Sport and listen,’ he advised. But for the first hour, the next day, I completely forgot. So totally besotted was I with the big Bentley. I was in Wales, on twisty roads I didn’t know, completely lost. Roads as wide as, well, a Continental GT – and as mud-strewn as a farmer’s Wellington. Yet there I was, searing along in cocooned bliss; steering responding with rare accuracy to tiny tweaks. Engine bellowing all the power I would ever dare use immediately. Chassis deploying it cleanly, to all four wheels, without delay. Total iron-fist composure with the

a drive in all test cars I’ve ever turned up in rears its head: If you had the money would you buy one? Well, that’s like asking which member of Girls Aloud you’d most like a ‘liaison’ with. I tell him – it’s an unanswerable conundrum. But still we try and come up with a solution. At £120k list I probably wouldn’t sign on the dotted line

speed of reactions you’d associate with a Porsche. Yet, with none of the rawness. Note how I said cocooned? The Speed-bespoke quilted leather seats were hugging me like the perfect girlfriend; firmly, none too clingy. Then I remembered Gush’s words. And selected the auto’s sport mode. Using the mighty steering wheel paddles, I flicked down a few gears. By God, he was right: it was barking! What’s more, the noise as the revs rose was simply unreal – there’s no way of describing the unique voice of a W12 engine, other than as a V12 without the hysteria, a V8 without the bark. I loved it. Richard Aucock, deputy ed

– my heart still lies in Italian supercar territory at that price range, but now these W12 bruisers are starting at £50k in the used market, well that’s a very different matter. A £50k Bentley is a no brainer, we both heartily agree, as is picking Cheryl Cole for that quiet drink… James Baggott

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forecourt I

’ve had an interesting couple of months on the road test side of things. As you saw last month, we stretched the legs of an Aston Martin DBS, Caterham R500, Mitsubishi Evo X in Wales – all capable of hitting 60mph in under five seconds. Then, a few weeks ago, as you’ve read on the previous pages, I had the pleasure of the company of a Continental GT – another sub-five second to 60mph car. Oh, and before RTotY 08 there was the Porsche 911 GT3, again a lunatic-fast car. Now, I’m not telling you this so you send me hate mail – I get enough of that already – it’s to show you just how lucky I was to get a speeding ticket in the car below! Yes, you read that right – lucky. The way I see it, if I’d been snapped pretty much anywhere in Wales over the RTotY weekend I’d now be in a dark, dank jail cell with

If you’re going to get caught speeding, you want it to be in a Volvo XC90! Here, the editor explains why from 70mph to 60mph all over the place. Confussome hairy-arsed murderer calling me Jamesie – not sat looking at the Notice of Intended Prosecu- ing doesn’t come close. So there I was plodding along at 70mph when FLASH, bang, wallop tion from Bedfordshire Police in the comfort of my office. Several times over the past few weeks what a picture – I’m screwed. Turns out I was in a 60mph and that camera purporting to be a I could have been the star of a very real Police, lamppost has my ugly mug indelibly frozen on its Camera Action sequence with Jamie-I-can’t-getelectronic brain. The ticket comes through and it’s work-anywhere-else-Theakston patronisingly 71mph in a 60mph. Fair cop. I was speeding. But doing a voiceover. I’m not trying to glamorise if it had been the 70mph zone I thought it was speeding – it doesn’t need it, you get the thrill then I was actually being a very good boy – and yourself every time you get in a car, but what I going by the past couple of weeks that is quite am saying is I got a little complacent, and thank unusual indeed. If it hadn’t been for the sooththe Lord it was in this sensible Volvo. ing, calming atmosphere of the Volvo, the comfy It was because I was in the XC90 that I was interior, the silky engine, I wouldn’t have been taking it easy cruising along at a sensible speed in complete comfort. Heading plodding along and that ticket might very well have been a ban. up the A1 – a road I’ve never The XC90 has been with us a while now and it’s used before – there is a a cracking 4x4, especially in this funky-looking section that swaps R-Design mode. Unfortunately for my trip around from 50mph to the country to hand out last month’s Ewards, I 60mph and booked in the 3.2-litre petrol model – a cracking unit; smooth, refined, powerful – and thirsty. Camel thirsty. Like wallet-poundingly, Kuwaiti oil baron-pleasing thirsty. However, despite the drinking problem, the XC90 is still a superb distance car. Comfortable like all 4x4s should be, with chunky Fisher Price-style buttons, it was the perfect partner for a week on the road. It’s an easy car to live with and in this R-Design spec quite sexy too. Did I really say that? A 4x4, sexy? Ok, perhaps not in the conventional sense, but if utilitarian does it for you, even after all these years, the XC90 can still push the right buttons. JAMES BAGGOTT

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cult cars I

almost crashed an M6 the first time I drove one. In the car park. In reverse. Mildly embarrassing, you could say. That bloody SMG semi-auto gearbox… See, you can’t juggle the clutch in an M6, nor edge along with a slur of the torque converter. It’s either go or stop, one or zero, there’s very little in between. Reversing it out for the first time, I wasn’t aware of this. And almost lunged straight back into a rather expensivelooking Audi. Things didn’t get much better on the road. I was expecting fireworks. After all, this was a 507bhp 5.0-litre V10! Yet, it felt as flat as a pancake. It droned without too much drama, seemed to fumble gearchanges, and the Porsche sensations I was promised simply weren’t materialising. Now, a couple of years before, I’d driven a V8 645i from southern Spain, right back to Blighty – and it was one of the best driving weekends I’ve ever had. The car was pure GT, quite lovely. Yet here, my high expectations for its motorsport-honed sibling simply weren’t being met. So I got frustrated. Downchanged three of the seven gears, and let the engine reach the stratosphere. Then, the real M6, the one

with the carbon fibre roof and weight-saving thinner-glass-than-normal rear windscreen, started to emerge. As rapidly as the reaction of the rev counter needle, it became clear. To get the best from this car, you can’t faff about, expecting gobs of torque to row you along (not least because, relatively, there hardly is any). You also can’t leave the computer in control of the gearbox. No, wrestle control, press the flurry of ‘M’ profiling buttons to remove limits on power and throttle sensitivity, and become a nutter. My God, did it wail when I did so. Yelping towards the 8,250rpm red line, the increase in potency and pace was stark; the alternation in character immense. Suddenly the M6 had found its voice, stopped being an in-betweener and entered the hardcore mode its four exhausts, bulging gunmetal-finished alloys and slitty spoilers hinted at. Flicking steering wheel paddles as the ecstasy of 60mph-in-4.5secs vim was interrupted by the rev limiter, even the derisible gearbox started to make sense. Third (or was it fourth? Who knows…) hammered home in a flash, throwing yet more acceleration into the mix. I was wired. Properly on edge, tense and felt like I was driving a high-wire. That’s the

BMW M6

attitude you need to put into the M6, because letting the car do the work just doesn’t, er, work. It’s all or nothing, lost in a sea of muddlement or brutishly effective and fast – there’s no in-between. For this reason, the gearbox is probably the ideal combination. Because lazy drivers need not apply here. Utter commitment and steelyeyed focus is the name of the game. Somehow, I didn’t crash it on the road either, and arrived back at base with a heart rate doubled and reserves of luck depleted by about half. I was buzzing from the intensity of it all, invigorated by BMW’s split-personality extreme machine. I nosed it carefully into the parking bay. And, yes, almost crashed it again… RICHARD AUCOCK

BMW M6

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sales legends

d u s Alfa Alfa Romeo

o is Alfa’s first ud, iT M w e n e th t life under a clo ne tell you tha Don’t let anyo lfasud may have ended its ss could match it... A la small car. The launched nothing in the c as but when it w

iTo fever is well under way in Alfa Romeo dealers. And how they deserve to have a ‘pizza’ the action (sorry)! Boss Christopher Nicholl has slashed the network, encouraged those who remain to pull their socks up, and the result is the strongest state of health the dealer network has seen in years. It may not be huge, but Alfa’s UK retail presence is full of hope – because of the brilliant new MINI rival it’s been granted to sell. Makes you wonder why it took the brand so long to produce, really. Especially when three-and-a-half decades ago it was just about to launch what in many ways is the

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spiritual forebear of the MiTo – the Alfasud. It was small. It was front-wheel-drive. It had flatfour boxer engines that sounded delightful and gave it the handling finesse to beat a Mini Cooper. What was not to like? At first, very little. Sales started in July 1973. It was a quiet beginning: dealers had just the one car to sell, the 1,186cc Berlina four-door. This was followed by an SE model in April 74, with a sporty two-door Ti version, still using the same engine, coming a month later. More austere L and N models chimed with the mid-1970s economic woes. This, remember, was when Ford discovered how popular ‘Popular’

boggo-spec Escorts could be… Indeed, it wasn’t until spring 1977 when a larger 1,286cc engine became available. Grandly titled Berlina Super, these cars were quickly followed by a facelift in 1978, when an even larger 1.5-litre flatfour came on to the scene. By now, the Ti version was quite a weapon. The range was also becoming pretty complex But it wasn’t until 1980’s Series 3 cars, distinguished by black plastic bumpers, that the Alfasud really started to exploit range diversification (and dealer-mystifying trim line-ups!). There was yet another new entry engine, the 1,351cc unit, and a

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far more comprehensive range of trims, including Berlina, Ti Veloce, SC, and Ti X. In 1982, the famed Cloverleaf model arrived. Just the thing to challenge the Golf GTI. Shame it was a bit late. Also overdue, the hatchback came on the scene in 1981, joining the sporty-look coupe Sprint version that had been sold since 1979. By 1983, though, it was all over, after almost 900,000 had been built. The delightful Alfasud was replaced by the so-so 33. After reasonable beginnings, Alfa began a period of decline in the UK that would continue for many years. The Sud didn’t help. Because, and they’ll hate us for reminding folk of this, it rusted. We spoke to one owner, who regaled us with tales about welding on new sills, to get it through its first MOT. ‘I should’ve known, when the rear number plate fell off after a few months, because the screws had rusted through.’ The damage to the company’s reputation lasted years. Indeed, while its fortunes have ebbed and flowed over the years, the company has arguably just not had the product to get a strong foothold in the UK. Even the brilliant 156 was stymied by weaknesses elsewhere. The MiTo is different, though. It’s a great-looking Alfa Romeo, priced very keenly, that’s taking the illustrious name into a high-volume sector. It’s economical, cheap to run and a hoot to drive. Just like, in fact, the terrific ’Sud. 35 years after it set a flawed template, Alfa’s finally got round to fixing the bad bits and copying it…

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profile

‘The credit crunch is an opportunity. It will help me fix what needs fixing’ Andrew Humberstone, Fiat’s UK boss, tells Car Dealer why these challenging times could be a good thing for his brand

ith sales figures tumbling across the industry, dealers struggling to turn a profit and banks refusing to lend, most car bosses are seriously worried about what 2009 holds – but not Fiat’s UK managing director. Andrew Humberstone is the charismatic boss of the rejuvenated Italian brand and he’s actually excited about what the future holds. In fact he’s even confident the credit crunch holds more opportunity for the marque than problems. ‘I am very bullish about next year as I’ll be able to fix what’s needed to be fixed in the UK market for the past 20 years,’ says Humberstone. ‘I am in a unique position where I have the right product, at the right time with the right brand. But I’m not for one moment going to sit here and say we’re going to have a cracking year in 2009, but it will give me the perfect opportunity to make the changes and corrections that we so badly wanted and needed to do.’ Humberstone is an engaging speaker and extremely confident. He speaks with real passion about his brand and it’s easy to get caught up in his love for the rejuvenated marque. His office in the manufacturer’s Slough HQ is tucked away in the corner of one of the top floors. It overlooks a busy road and he can see a number of rival manufacturer dealerships from the vast windows. Slick and stylish black and chrome furniture, all extremely Italian in design, is dotted around his workspace and his huge desk is covered in reports and paperwork. Floor-to-ceiling glass windows on two sides heat up the room like a greenhouse and stunning Fiat artwork hangs on the remaining two walls. There’s a huge glass door into the room with a view down the hallway to a boardroom where a busy meeting, complete with conference call and PowerPoint presentation, is taking place. Dressed in a sharp suit, striped shirt and bright red

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tie, he fits the role as the head of the Italian brand in the UK perfectly – the outfit’s complemented by a glistening gold watch (a Rolex, I think) and gold cufflinks. He’s a sharp dresser, that’s for sure, but as he starts chatting about his plans for the future it’s quite obvious he’s got a sharp mind too. The 44-year-old joined Fiat’s UK operation in November 2007 from similar roles for Fiat in China as vice-chairman of Nanjing Fiat. Prior to that he’s worked for the marque in India, the United Arab Emirates, Saudi Arabia, Kuwait and South Africa. And there’s no doubt he spent a while at that last location – even though Humberstone is English, there’s a distinct South African twang to his accent. One thing’s clear too, the UK boss is confident about next year. But what does he mean when he says it’ll give him the opportunity to ‘fix’ Fiat in this country? ‘We are going to be making some radical changes to our strategy next year,’ he explains. ‘The consumer is going to significantly benefit, but maybe not the network, or necessarily Fiat for that matter, in the short term. ‘There will be a lot of cleansing of the network. Partially from the banks and partially from my overall strategy to address one of the biggest challenges Fiat has had as a brand – and that is its network. ‘CSI is continuously at the bottom of JD Power and our network has been a point of weakness. So, we’ve looked at it closely, and now have a very clear plan moving forward. ‘I do think my job is going to be made easier next year, though, because some of the dealers I would have had to say goodbye to will fall by the wayside by default. We’re certainly in for interesting times.’ It’s clear Humberstone has a bee in his bonnet about some of his dealer network – and he should know! As revealed exclusively in the August issue of Car Dealer, the MD has been visiting every one of his franchises across the UK to see who >

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profile

up. So what has he learned from the experience? ‘Well, I soon identified that some of the basic principles are not in place,’ he explains. ‘Sometimes we get so obsessed with business processes and we forget what really makes customers buy – and that’s the relationship they have with the dealer. They need to have trust and confidence in the people they deal with – it has a huge impact on purchase decision-making. ‘Here’s a very simple example: I’m doing some work on my holiday home in France and my wife phoned me and said she’d met two guys who quoted for the work; one was almost double the price of the other. Obviously I said we’ll go for the less expensive – it’s a simple equation, right? ‘Not exactly. She said the second guy was absolutely wonderful; he was thorough, professional and took time to explain everything and she trusted him more. The point is, there’s a huge amount that people are willing to pay simply because of customer service, peace of mind, attitude and relationships. ‘I’ve visited dealerships that aren’t that nice to look at, but you would want to buy a car – and that was purely down to the people working there. I think sometimes companies can be guilty of spending too much time focussing on processes and not enough time focussing on people.’ So what else impressed Humberstone on his travels? ‘That’s simple,’ he says. ‘The quality of some of our partners. We have some very good ones out there that are exceptionally loyal to the brand and that really struck a chord with me. ‘These dealers have gone through some very difficult times, but they have remained focussed and loyal. It’s the reverse of that which upset me the most. There are dealerships that are prepared to drop franchises depending on what is the flavour of the month and that’s annoying. ‘Now, we have people kicking down our door,

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‘I think we are going to see a lot of casualties in our dealer network in the next 12 months.’ begging to take on a Fiat franchise because we’re in the right time, the right place with the right models. People are downsizing and the market is effectively coming to the A/B segment – which we are very big in.’ The conversation quickly spins back around to the two words that strike fear into most automotive players at the moment – credit crunch. But this time we want to know how Humberstone plans to help dealers in what is clearly troublesome times? ‘The property market is at a 30-year low, down 15-16 per cent and forecast to go lower, we have high unemployment and an exchange rate that’s hurting too,’ he says. ‘We’re frankly in a very serious position and one where liquidity is a valuable commodity. ‘The best thing we can do now for dealers is help them clear existing stock. Any manufacturer that is pushing now is really putting their dealer network at risk. Most franchises run their businesses on overdraft facilities and banks are going to be looking very carefully at the liquidity of these firms. ‘If the market continues to decline and the number of sales registrations continues to fall, those cars are going to create a backlog and banks will become very apprehensive. ‘Dealers that have stock of pre-registered cars or high levels of used vehicles are under significant risk. I think we are going to see a lot of casualties in this dealer network in the next 12 months. For me the credit crunch is a fantastic opportunity and I am looking forward to lever-

Andrew Humberstone aging what we can out of it. It’s a key opportunity and if we miss it we’d be really foolish as it’s perfect timing for everything. ‘We can fix our network, organise our processes and be selective about the discounts we offer and focus on preparing the groundwork for a volume market that’s yet to come. There’s no reason why we shouldn’t be doing five, six per cent market share with our portfolio. We have huge potential, but we need to get our house in order and this is the perfect time to do it.’ Okay, so we know it’s going to be tough for some and Humberstone is clear he doesn’t think everyone will survive, but how can the dealers that want to protect themselves keep going during the recession? One word, he says – plan. ‘The biggest weakness I find in the network has been dealers’ inability to plan,’ he explains. ‘It’s about having a clear vision and knowing how to get there. People know where they are and where they’d like to be, but there’s no road map on how to get there. And for me the successful dealers are those that know how to fulfil their objectives. ‘The market is downsizing and coming to brands like ours and we are strong in this sector – we’ve got wonderful products in the 500 and Panda. The 500 has already gained almost iconic status and the car is doing exceptionally well. Our network is in the best position to benefit from this change in consumer buying behaviour, we just need to plan and be prepared for it.’ [CD] JAMES BAGGOTT

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marketing

ys se da k e h t y n tell rd Aucoc n o e b a a s want cars. Rich to create e n o Every ding used ho wants u w – incl the man le g s meet otive Goo autom

‘

TV Winner

We have introduced a completely new way of marketing and advertising cars.’ That’s the claim from Motormarttv.com founder Antony Spear. ‘We are going to revolutionise how people buy, sell and interact with cars online.’ And he promises he’ll make money for all concerned in the process. Motormarttv.com is the creation of the enthusiastic Welshman. He has used his own money to invest big in his brainchild, and has seen it through a deep, detailed development process that’s taken well over a year. Finally, it is ready – and he can’t wait to roll it out. The launch process is already underway, and the first viewings are already said to be exciting public and traders alike. Because, as Spear explained to Car Dealer, the concept really is unique – groundbreaking, even. ‘It’s unlike anything else out there,’ he says. Spear speaks of ‘stickability’; it’s his guiding

principle. He has aimed to create a site that is more of a community, with high numbers of repeat views and visits. So, as well as carrying new and used car listings (Spear hopes for 400,000 listings by the middle of next year), not to mention associated advertising from dealers, it also has a high level of car-nut entertainment. Owners can post videos, set up profile pages and buy parts. ‘This area is great for driving visits,’ he says. ‘We allow people to easily click and send links on – such viral marketing is one of the best ways of spreading a message quickly. Really interesting stuff can reach hundreds of thousands of people in a matter of hours. Video really is where it’s at.’ There are no off-putting sign-ups, says Spear – although people still have to enter their postcode before they gain access. Why? ‘The site is completely dynamic, configuring itself around the particular postcode.’ >

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marketing ‘We allow people to easily click and send links on. Really interesting stuff can reach hundreds of thousands of people in a matter of hours.’

Antony Spear

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This is significant – as Spear’s tech bods have designed in the ability to target local advertising. If a buyer is in a particular suburb, all the adverts they’ll see will be from dealers in their locality. Oh, and of course all the cars they subsequently search for can be shown in distance from their house, too. Even news can be personalised: dealers who make the headlines will be picked up by the site’s search. What’s more, it’s entirely free for the public – even if they’re advertising their own car. ‘We’re using a Google-like philosophy. People will use us as a free resource. We’ll be financed by adding value to the trade, with all of our targeted marketing advantage,’ says Spear. ‘Our concept is to only charge for referrals. We’re the first to do this in the UK.’ Dealers pay as little as £100 upfront, which sets up a dealer profile page and the ability to brand all adverts with their logo. ‘Then, we charge for every qualified lead the dealer gets. This can be a telephone call (through an allocated 0845 number) of longer than 20 seconds, visits to their website, or an e-mail using the internal address accessed from the site.’ Spear illustrates that if 12 verified telephone

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calls lead to one sale, the cost for that sale will be £96. Pretty competitive, in other words. It’s wrapped under the banner of ‘DealerPRO – 100 per cent Performance Marketing Service.’ All Spear asks is that dealers sign up for a 12month contract, and leave a deposit. ‘For small traders, this will be £150.’ As he explains, all the risk is on his side. ‘You don’t pay anything if we don’t get you results.’ Spear also makes the refreshing assurance that 30 per cent of all profits will be put back into marketing the site, to ensure that it continues to grow. ‘It is a unique mode,’ he says. ‘It’s all done on a risk basis – and, with our low costs, we’re well placed.’ Rest assured, the only way this business model will work is through getting large numbers of visitors to the site. That’s why Spear is investing so big in marketing – and why the entertainment side is so crucial. He sees it becoming a ‘favourite’ for petrolheads, who’ll visit it every day. How many other sales channels, he says, can claim such repeat views? He has the innovations in place to encourage its growth, too. For instance, he has devised an innovative scheme for sourcing content from journalists. Instead of being paid for features as a one-off, Spear will pay for features on the number of clicks they receive. This means, he hopes, the country’s best writers will be providing copy for him, and being paid for how popular the pieces are. Then there’s that ability to localise news content. The site really does configure itself to the specific locality of the user. If you’re a dealer with a particular campaign or promotion

running, this means that if the story gets in the press, many people in your area will see it. You can see why Spear is so excited. The potential, he says, is enormous. Progressively, the marketing campaign will quickly get underway and gather pace. But competitive pricing will always remain its key attraction. ‘Others are, at the moment, bigger than us – but their charging structure reflects this. We’re the lowcost alternative that intends to be as big.’ [C CD D]

How it works DEALERS pay as little as £100 up front. This sets up a dealer ‘portal’ page. Traders can also brand their car advertisements with their own logo – and, says Spear, incorporate a promotional video, too. Motormarttv is paid by dealers for every lead it sends them. The charging structure varies. For example, for a small independent it would be: £8 – telephone call £4 – e-mail address £1 – website click ‘We cap the weekly spend though,’ says Spear. This ensures that good dealers will not be paying us too much! That small independent would never pay more than £75 a week, no matter how many leads we generate for them. ‘All I ask is that they sign a 12-month contract, and leave a deposit.’ Sounds fair enough to us…

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cultclick cars right

...in association with G-Forces

How you can build a winner The Car Dealer Ewards have got many people thinking how to better their web platform – here G-Forces’ Tim Smith explains what you should be aiming for

s I explained in an earlier article, there are three critical elements to online success: platform, management and marketing. While web management and web marketing are on-going activities imperative to the success of a dealership, your web platform is the starting point. For a web platform people will often just think in terms of a website yet a true web platform will not only include your website but other functions and datafeeds that help populate your content to the web. Of course, your website acts as your showroom so design is important for navigation and projecting professionalism. However, it is all the clever stuff behind the scenes that differentiates a web platform from a website and consequentially how many people actually visit it. In military terms a platform is a mechanism for delivering ordnance or payloads to targets. In web terms it’s your platform that delivers stock information to your target audience. A website’s primary purpose is to communicate content to an audience. For a dealer this means displaying a vehicle to a car buyer. The highest traffic pages on a dealer website are normally the stock pages, meaning visitors want to see vehicles or, more exactly, images of vehicles. The best websites go much further than this by providing detailed information about the vehicle including comparisons, VOSA data and numerous images. Your platform has to manage stock feeds effectively and be easy for staff to update content regularly. Lifestyle Europe’s site – pictured above – won the Car Dealer Franchised Dealer Website of the Year Eward last month because it’s so easy to update there are never

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‘Choose a provider who has done it before and who can provide glowing testimonials from customers like you.’

companies or websites requiring a total rebuild just to keep them competitive. A good platform allows growth and enhancement without the need for wholesale changes. Your web platform needs to suit the size of your business. I recommend smaller non-franchised dealers go for templated or off-the-shelf less than six images of a vehicle on the website. packages from Auto Exposure, Auto Trader or How many other dealers can claim this? Portfolio whereas multi-franchise dealers with However, it’s not just about how well the web- complex requirements may look to companies site delivers rich content; if it cannot be manlike G-Forces and Motortrak. aged easily or cost effectively it does not fulfil its This leads on to perhaps the most important purpose. To continue the military analogy, the factor to consider when choosing your web Eurofighter is one the most advanced combat platform: do not be tempted to go down the aircraft in the world, but the cost of arming the bespoke route, buy software. Choose a provider thing has meant it hasn’t seen any combat yet… who has done it before, is evolving their soluIt’s amazing the amount of times I hear of deal- tions and can provide glowing testimonials from ers complaining about excessive charges by web customers similar to you.

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YourCarLoan

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...in association with Vansunited.co.uk

cars LCVcult insight

Conquering the crunch Vansunited.co.uk is enjoying a surge in dealers using the portal as buyers spend more time online researching where they can get the very best deal

espite recent figures from the SMMT showing the decline in new van sales, the used van market illustrates that there is light at the end of the tunnel for dealers. Online portals such as Vansunited.co.uk have reported that user numbers have far from diminished, and instead, more van owners are logging on to the internet and spending time doing their homework to ensure they get a good deal. Now really is a good time to micromanage your stock to ensure you don’t miss out on the best deals. Benchmark pricing is the key to a higher turnover of stock, and reducing the price of stock that simply won’t shift will ensure that your business stays afloat in tougher economic times. Advertising your range on the right portals with the right level of traffic will guarantee better sales. Vansunited.co.uk has recently experienced a surge in dealers signing up stock to their extensive network of sites which include, Carsource. co.uk, Teletextcars.co.uk, Vansbymail.co.uk, Transitsbymail.co.uk, Contracthireweb.co.uk and Vanweb.co.uk, in order to gain maximum exposure on the internet. Introducing finance offers within your dealership is another way to increase your sales figures. Despite being the preserve of the car market, finance offers on LCVs have witnessed a significant increase in recent months and can help to secure a deal, providing the offers are competitive. Keeping in touch with your customers is vital so making sure you have well-trained staff, and high response rates will ensure your business remains credible. One third of email enquir-

Berlingo range extended with arrival of L2 CITROEN’S new Berlingo range has been expanded, with the launch of the L2. The new variant has a longer rear deck, providing 250mm of extra length. It also has an additional 0.4cu/m load volume. Twin side load doors are standard. The L2 LX also allows loads of 3.25m in length to be carried on the floor.

All Berlingo L2 vans are fitted with Trafficmaster Smartnav and Trackstar stolen vehicle tracking systems as standard. Robert Handyside, Citroen’s commercial vehicle operations manager, said: ‘The new Berlingo L2 fits in our range between the existing Berlingo L1 model and the larger Dispatch. ‘In terms of load volume

ers expect a response within just four hours when searching online, so if you don’t respond promptly to enquiries customers will simply go elsewhere. Perhaps now is the time to mystery shop your staff to ensure you’re delivering the highest quality service you can. Last, but certainly not least, it is vital to ensure the photography and the description of your

and load deck length, the Berlingo L2 is comparable with the previous model Dispatch – and it provides the benefit of even greater long load carrying capability.’ Prices start at £12,395, plus VAT and delivery. Two variants are offered – X and LX – with the same 90bhp 1.6-litre HDi turbodiesel engine.

vehicle is first class. After all, the better the photography, the more appealing the vehicle will be to the consumer. Professional quality images will set you apart from your competitors and guarantee four times the response rate from customers, proving that now has never been a better time to consider photography as a key advertising tool online.

CarDealer

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...in association with Really Good Domains

dot cultcom cars

Leasing’s new phenomena Really Good Domains have spotted a new trend – the rise of contract hire and leasing deals on quality used cars

ith running the number one website in the UK Contract Hire and Leasing industry – ContractHireAndLeasing. com – we have first hand experience of any changes in the sector and over the last few months there has been a rapid rise in the number of leasing companies, brokers and main dealers that have been looking at boosting sales through more creatively positioned offers. Traditionally, the contract hire and leasing sector has seen leasing companies, dealerships, and brokers offering cost-effective methods of finance to businesses and the general public on a wide variety of brand new makes and models. User feedback on ContractHireAndLeasing. com has confirmed the public’s awareness is growing, with word of mouth helping to spread the message of the benefits of contract hire in comparison to other methods of car ownership. This increase in the private contract hire and leasing sector has led to more companies offering these types of deals and has given rise to a relatively new phenomenon. This new phenomena is the sudden rise in established leasing companies offering contract hire and leasing deals on good quality preowned cars. Several car leasing companies such as Freedom Vehicle Contracts now have a dedicated pre-owned section on their website, as well as advertising these deals on ContractHire AndLeasing.com; promoting great value deals on used stock. Many dealerships are making moves to offer forecourt hogging used stock on contract hire and leasing deals as a way to boost sales; and to clear space, with shorter term contracts available. Another driver for this growing sector is, due to contract hire rentals usually determined by the residual value of a vehicle, it has not always

‘There’s a rapidly growing market out there for offering pre-owned cars on contract hire or lease.’

ing opportunity for many companies. Hatfields Chrysler of Bury had to source extra vehicles to satisfy consumer demand after placing an attractively positioned pre-owned vehicle contract hire deal on ContractHireAndLeasing.com – they sold 50 units in a month! been cheaper to lease a used car instead of a ‘We have noticed an uplift in the number of brand new unregistered vehicle; however with pre-owned vehicles being advertised on Contract used car values plummeting recently, dealers can HireAndLeasing.com, many deals are very comnow buy cars cheaper and reduce the cost of a petitive which is helping to stimulate even more lease agreement. interest,’ said Richard Lawton, RGDs marketing In the main, the leased cars market is not manager. looking to trade-in or part exchange an existing ‘In this challenging climate with dealers keener vehicle when looking for a car, which makes the than ever to explore as many routes to market deal easier to construct. as possible, there does appear to be a rapidly Finally, there is a double profit opportunity, growing market out there for offering high with the profit in the pre-owned car and the quality pre-owned cars on a personal or business profit in the lease agreement, providing a tempt- contract hire or lease basis.’

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auctions

Consumers head to auction More car buyers are bypassing dealers and heading straight to auction in an attempt to bag themselves a bargain

ar buyers are being drawn to auctions, a specialist website reports. Over the past month, Carandvanauction’s website traffic has grown by almost two-thirds. And over the same time last year, it’s a further increase of nearly half – and that goes against industry trends at this time of year, says marketing manager Richard Lawton. Traffic in the winter months usually falls due to the notorious Christmas quietness, but not so this year. And it’s the economic downturn that’s to blame. ‘This demonstrates the ingenuity of British motorists, who have realised that they can secure a high quality vehicle for a reasonable price through motor auctions,’ said Lawton. ‘More traffic to our website means more people visiting auction houses.’ It also potentially means fewer people in your showrooms and proves once again how important value is to buyers. Smart dealers will enhance this, while also showing off the many advantages they can offer. Inexperienced buyers, daunted by auctions, may seek the reassurance you can offer so it’s crucial you get this across. BCA meanwhile is reporting interesting statistics in its latest Pulse report for November. With pressures in the new car retail market, fewer part-exchange vehicles have been reaching the wholesale sector. This relative shortage of what is often budget-priced stock has kept values relatively level over recent months. After October recorded a small fall of £43 in average values for part-exchange stock, values fell by a further £56 (2.7 per cent) in November to £1,985. Year-on-year the decline was £356 (15 per cent). The average performance against CAP

More members of the public are braving the auction halls in search of a bargain motor

‘It demonstrates the ingenuity of British motorists who are looking for bargains at auctions.’ Clean was 86.65 per cent. BCA’s communications director Tony Gannon said: ‘Because demand remains weak, we are not anticipating much change before the end of 2008. In recent years, December has been a period where the volume buyers dominate proceedings and seek to acquire stock in advance of the traditional January price rises.

‘This is often combined with a relative shortage of stock, which stimulates market values. However, based on current trends, there is little to indicate that market values are about to pick-up as they have in previous years. This means in real terms used cars are going to remain more affordable than they have been in many years. ‘The budget end of the market remains very busy, but there is a definite watershed in demand at around £5,000 – which can be seen as the upper limit of affordability when finance is hard to come by for retail buyers. ‘Inventory depreciation remains a critical factor for any organisation holding large volumes of vehicles.’

Manheim’s online bidding system gets more popular

The Manheim Simulcast service

56 CarDealerIss10.indd 56

MANHEIM has reported that its online bidding and buying service is getting more and more popular. Monthly sales recently topped 1,000 cars for the first time. Exactly 1,009 cars were sold at more than 150 auctions ‘attended’ over the net by 1,023 individual dealers – together they generated more than 7,000 online bids. The web service, called ‘Simulcast’, has recorded sales 35 per cent up on last year. The number of individuals registered to view auctions virtually has gone up by two-thirds, with the number of active buyers doubling.

All of Manheim’s 19 centres are geared up to relay live auctions over the internet and now 40 auctions a week can now be joined online. And that’s good news for the trade as a whole, says Mike Pilkington, MD of Manheim Auctions & Remarketing. ‘We know from our research that our online buyers are often new to the auction environment, and that they are attracted to the internet by minimising both travel time and avoiding travel costs,’ said Pilkington. ‘The results also confirm that trade buyers are comfortable with the concept of online buying.’

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automation

...Advertisement feature

Automatic for the people If your employees are spending more time on admin than working with customers, you’ve got the wrong IT system, according to q.bit Systems’ Nigel Pates

ar dealers are poorly automated. They are wasting money in employing more staff than is necessary to process their current business activities. Their staff are doing time-consuming tasks that are unproductive and spending time on administration they should be spending on talking to customers. This means cost bases are higher than necessary. And it’s a problem that’s rife through the industry. So says q.bit Systems’ Nigel Pates, who says the issue has become even more serious now the credit crunch has really started to bite. ‘Dealers are simply unable to react at the right moment to a rapidly changing market.’ His solution? Automated process management systems. In short, this is the substitution of unproductive administration manpower costs for productive customer activities. A whole hour currently spent carrying out administration work could be spent selling to customers – but that’s only if you’ve got the right systems! Starkly, Pates uses the simple examples of the number of sales managers in the business spending hours keying in spreadsheets or the hours of cost spent typing in sales invoices. ‘All that time, the business is not selling – yet it is perfectly possible to design automated systems that replace this activity with more useful work,’ he says. ‘And it’s a problem almost every dealer has – the inefficiencies are vast. ‘There are a thousand inefficiencies in the car business that could be solved by automated business process management systems. The primitive situation we’re in at the moment shows that existing solutions simply aren’t working.’ Pates says q.bit provides the answer. He can offer a range of integrated dealer modules that save time and money. These cover areas including showroom sales management, delivery and customer satisfaction, stock efficiency, sales invoice automation – plus the key business drivers of prospecting and retention, marketing and database, lead management and increasingly important telephone integration. Large organisations have already been won over. Perrys Group, for example, was as sceptical about the introduction of automation by providers outside of their DMS systems as many. After years of discussions, it was finally convinced to take on q.bit’s automated finance process – providing a

CarDealer

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‘An hour currently spent carrying out administration work could be spent selling to customers – but that’s only if you’re working with the right system!’ single entry point for multiple finance proposals. Now, Perrys has real-time information on where finance is being placed – and can rapidly deal with the increasing incidence of multiple placements before acceptance. ‘They have a clear picture of the financial situation, and have been able to bypass difficulties tighter sub-prime lending criteria have introduced.’ Allen Ford’s MD, Kevin Quigg, was far less sceptical about these systems. ‘He said yes right away, and has been with us for a number of years. We created systems for them to communicate with customers in high volumes. ‘They look at customers in their database every day, and can instantly devise strategies on how to talk to them. The system simultaneously manages customer communication by their two internal call centres, external call centres and all their sales teams. ‘Quigg never asks can it be done? He knows it can. The system is his servant. And he exploits it to be at the cutting edge of operations.’ ‘We use it for data capture, lead management and CRM, amongst others,’ said Quigg. ‘It’s improved out data capture, the quality of that data, and has really enhanced customer prospecting. Once they’re in the system, they can’t be lost.’ ‘Dealers will not understand how good they are until they see them in operation.’ Most dealers are wedded to DMS systems, but Pates says this mindset has created ‘lead

boots’ for the industry. ‘These systems have failed to create a sophisticated, responsive set of processes. This means dealers are less able to introduce a planned and evolving approach to, say, customer communications. ‘Statistics show, for example, when most new car buyers are likely to change their car in the future. Why not make it easy to identify these, and contact them at the right time? Or identify when services are due, and do the same? Because current models do not easily allow it, it’s just too hard for most dealers to be where they really want to be. Whereas, with automation, this could be done. ‘When I shop at Tesco, my invoice at the till is posted straight to accounts. The distance between management and the transaction is reduced. In car sales the distance between the deal and the management is too long and too costly. The two businesses are worlds apart.’ ‘The underlying attitude is that invoices are so complex, they can’t be automated. That’s rubbish! This attitude is seriously holding back dealer efficiency and profitability.’ Efficiency processes are self-fulfilling, too. Once the mindset is instilled in a dealer, it doesn’t stop. ‘It creates an urgency for people to think, ‘what could I automate next?’’ Imagine linking telephone and database together, so records flash up when the phone rings directing your staff to manage the customer correctly. ‘Automation is giving the right information at the moment a dealer needs it,’ says Pates. ‘The motor trade is constantly evolving, and dealer processes need to do this, too. There is a disbelief among car dealers that IT can work in this environment. It can! Automation means change. And change means profit…’ For more information log on to www.qbitsa.com or call (020) 7538 6651

59 5/12/08 10:30:28

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products 1. Garmin Nuvi 265

Price: £149 Contact: garmin.co.uk The Nuvi 265 has the maker’s excellent phonehandling software and retains its top class navigational expertise. Like all Garmins, it is simplicity in itself and if you’ve never used a sat nav before it’s a great place to start. It has excellent speed camera spotting software included too.

2. Navman S30 3D

Price: £100 Contact: navman.co.uk It’s got a simple interface with brilliant navigation for a bargain price. The 3D mapping is easy to follow and the motorway sign-style icons are simple to read on the move. It offers 3D images of buildings in major cities and the on-screen and spoken directions are simple to follow. Speed camera alerts are a bit slow though.

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Price: £136 Contact: navigon.co.uk With brushed aluminium and high quality plastics the Navigon is a classy product. It’s let down a little by the display – it’s fussy and the mapping isn’t very clear. It doesn’t have a Bluetooth handsfree kit, which is disappointing for the price, but it does offer excellent traffic jam spotting information.

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Price: £99 Contact: tomtom.com This TomTom is a little lacking in detail next to the snazzy Navman, but it gets on with the job of guidance without any fuss. Lots of information is displayed on the screen, which can be a little difficult to read on the move, and there is no handsfree kit or traffic information either. To make matters worse, the speed camera software is poor too.

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Price: £150 Contact: snooperuk.com THE Sapphire is a little on the small side. The tiny display makes it’s hard to input information with your fingers, but it’s quite a classy unit that’s compact enough to fit in your pocket. It features audio and video playback, but it’s missing Bluetooth and traffic information.

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Price: £229 From: clarion.co.uk Clarion hasn’t abided by simplicity rules and its MAP680 model has a distinct air of trying a bit too hard. The display is over complicated, fussy and has an annoying habit of zooming in and out. There is a smart Bluetooth handsfree kit though, and a multimedia player that can play audio and video files.

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Price: £299 Contact: garmin.co.uk The Nuvi has lane assist software that makes sure you’re well informed at motorway junctions, and in major cities it offers 3D images of buildings to help you get your bearings. It features a brilliant Bluetooth handsfree kit that’s easy to set up and use and the speed camera detection software is top notch too.

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Peering into the lives of the motor trade...

On The Spot

Name: Jon Grace Age: 33 Lives: Ribble Valley in Lancashire Any family? Beautiful, but crazy, wife Caroline and Paddy, a black Patterdale terrier who thinks he’s invincible.

all the plates spinning.

ring tone? Funk 49.

Any downsides? I don’t own the company!

What do you drive? For work anything with fuel in it. At home, a Land Rover 90 Defender.

Do you have an average day and how does it pan out? There is never an average day at Motorpoint. I know it sounds like a cliché, but if there is one recurring theme then it would be sell, sell, sell – that’s what we do!

What’s your favourite film and the last one you saw? My favourite film is Where Eagles Dare. The latest movie I went to see was the new James Bond film. I thought it was wonderful.

How much do you earn? Well, not enough to buy a yacht.

What was your first job? Trainee manager for an engineering company. What was your first car? An Opel Ascona. Sadly it only lasted two months before it had a fight with a Volvo estate. Who do you work for now? Motorpoint. I am the general manager for the Burnley site. What does this involve?

I am responsible for the day-to-day running of the site, supporting and directing managers and the staff. As a company, Motorpoint is totally sales orientated – from top to bottom. This means getting involved at all levels, something which gives you a real buzz. What are your job’s biggest challenges? Keeping

What newspapers/magazines do you read? All the usual motoring magazines plus anything to do with fishing. For news I usually get on the internet. What is the most expensive thing you’ve ever bought? Still married, thanks! What’s your mobile phone

Favourite football team? The Cobblers (aka Northampton Town). What is the biggest challenge car dealers face? Reacting and adapting to the market. If you don’t you get left behind. What would be your number one tip for car dealers? Stack ‘em high and sell ‘em cheap – customers aren’t stupid! And finally... what’s your motto in life and business? If you take away the excuses, there are no excuses.

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

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used cars

Little winter cheer

Now is the time to cash in on the demand for clean used cars, says HPI’s Valuation Expert, Martin Keighley

he headlines may revolve around the collapse of new car sales, but it is worth noting that some consumers are changing the way they think, and consequently their car-buying habits. It seems consumers are quite prepared to miss out on the latest technology and gadgets if less outlay and less finance are the alternatives. Many retailers have already written off December, looking towards the new year for a break, but there are people out there looking for a used car, either to downsize and economise, or as an alternative to a new vehicle. However, readily available credit has caused another problem – the creation of a use and throwaway society, meaning that used cars, when they eventually come to the market are often in poor condition. The knock-on effect has been a shortage of cheaper, older and clean cars. It’s a problem that will get much worse especially as 4x4 and larger vehicles are slipping to values where they are practically un-saleable. Because of this, many owners will simply run them into the ground without a second thought to their deteriorating condition. I predict the next few years will see clean cars become even more scarce and values of clean four, five and six-year-old models will prosper.

Fears of a recession mean the latest HPI Used Car Valuations Index makes grim reading for the UK motor industry

sed car prices continue to slip with yearon-year valuations 24.6 per cent lower in November than the same time last year for all 12-month-old cars. The decline is even more

pronounced with three-year-old models, which are now worth a staggering 29.1 per cent less than in 2007. The story runs across the board with petrol vehicles faring no better than diesels. Both fuel types have fallen more than 23 per cent year-on-year in the case of 12 month cars, with 36-month-old diesels outshining 36-month-old petrol models slightly with a fall of 27.2 per cent compared to 30.5 per cent. The picture remains bleak when comparing figures month-on-month across the board with November’s decline against October a further 5.1 per cent and 5.4 per cent for

Storm clouds lifting? The rate at which superminis are depreciating appears to be slowing at last

Small family sector 10 major ﬂeet players Rank

Model

...in association with HPI Valuations

Models in range

Average new price

Average RV 36(60) £

Average RV 36(60) % Monthly depreciation cost £

Ranked by residual value % 1 2 3 4 5 6 7 8 9 10

Honda Civic Volkswagen Golf Volkswagen Jetta SEAT Leon Mitsubishi Lancer Mazda 3 Skoda Octavia Peugeot 308 Kia Cee’d Renault Megane

49 57 22 21 15 15 22 35 15 11

£17,163 £17,882 £17,917 £16,670 £16,674 £15,293 £16,413 £16,534 £13,082 £16,295

£6,139 £6,142 £5,934 £5,465 £5,212 £4,735 £5,003 £5,009 £3,882 £4,807

35.8 34.2 33.2 32.8 31.3 31.0 30.5 30.3 29.6 29.5

£306 £326 £333 £311 £318 £293 £317 £320 £256 £319

Ranked by monthly depreciation cost 1 2 3 4 5 6 7 8 9 10

Chevrolet Lacetti Kia Cee’d Hyundai i30 Fiat Bravo Mazda 3 Toyota Auris Honda Civic SEAT Leon Skoda Octavia Mitsubishi Lancer

5 15 15 19 15 39 49 21 22 15

£11,405 £13,082 £14,378 £14,270 £15,293 £14,990 £17,163 £16,670 £16,413 £16,674

£2,235 £3,882 £4,148 £3,737 £4,735 £4,251 £6,139 £5,465 £5,003 £5,212

19.7 29.6 28.8 26.2 31.0 28.3 35.8 32.8 30.5 31.3

£255 £256 £284 £293 £293 £298 £306 £311 £317 £318

64 CarDealerIss10.indd 64

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...in association with HPI Valuations 12 and 36-month-old cars respectively, offering no let up for the beleaguered industry. One-year-old cars Within the year-on-year figures, there are some small crumbs of comfort as the rate of depreciation continues to slow for the newer city cars and supeminis which may indicate increasing demand. The rate of depreciation has now levelled in the small cars and family cars sector raising hopes that

the corner may have turned. But there is no such hope for all other 12-month-old cars where the rate of depreciation continues to increase, especially in the MPV, 4x4 and luxury and executive classes. Here the only cause for hope is with the consumer who can take their pick of the bargains. Three-year-old cars The worst hit of all the classes revealed in the HPI Index is the three-year-old petrol MPVs and 4x4s

which have fallen a dizzying 36 per cent and 41 per cent respectively so for the buyer still looking for a larger car there are bargains available. The rate of depreciation is starting to level out in the three-year-old city car sector and the increased demand for superminis is also reflected in the threeyear-old sector with a general slowing in decline. Amid the gloom, there is just the odd spark of life. It isn’t much but with a new year just around the corner, it may usher in a brighter future.

SMMT sales data November / year to date

Figures supplied by SMMT

November Marque

Abarth Alfa Romeo Aston Martin Audi Bentley BMW Cadillac Chevrolet Chrysler Citroen Corvette Daihatsu Daimler Dodge Fiat Ford Honda Hummer Hyundai Jaguar Jeep Kia Land Rover Lexus Lotus Mazda Mercedes-Benz MG MINI Mitsubishi Nissan Perodua Peugeot Porsche Proton Renault Rover Rover MG Saab SEAT Skoda smart Ssangyong Subaru Suzuki Tata Toyota Vauxhall Volkswagen Volvo Other British Other Imports Total

CarDealer

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2008

7 251 39 5,775 68 5,785 4 949 133 4,230 0 146 3 166 2,566 18,562 3,632 7 852 972 115 1,571 1,034 378 20 2,600 2,560 87 1,723 362 2,928 32 5,854 236 113 3,012 0 0 641 1,597 1,764 453 20 180 686 0 4,443 12,151 9,475 2,014 26 111 100,333

% market share

0.01 0.25 0.04 5.76 0.07 5.77 0.00 0.95 0.13 4.22 0.00 0.15 0.00 0.17 2.56 18.50 3.62 0.01 0.85 0.97 0.11 1.57 1.03 0.38 0.02 2.59 2.55 0.09 1.72 0.36 2.92 0.03 5.83 0.24 0.11 3.00 0.00 0.00 0.64 1.59 1.76 0.45 0.02 0.18 0.68 0.00 4.43 12.11 9.44 2.01 0.03 0.11

2007

0 779 142 6,653 100 9,759 10 1,329 563 6,354 4 304 4 277 4,470 21,072 6,315 13 1,819 1,096 215 2,956 2,906 901 74 3,370 5,984 0 4,104 1,201 4,895 54 8,896 548 113 8,364 0 0 1,523 2,445 2,522 524 50 456 1,671 1 7,501 19,833 14,163 2,159 51 192 158,735

Year to date (YTD) % market share

0.00 0.49 0.09 4.19 0.06 6.15 0.01 0.84 0.35 4.00 0.00 0.19 0.00 0.17 2.82 13.27 3.98 0.01 1.15 0.69 0.14 1.86 1.83 0.57 0.05 2.12 3.77 0.00 2.59 0.76 3.08 0.03 5.60 0.35 0.07 5.27 0.00 0.00 0.96 1.54 1.59 0.33 0.03 0.29 1.05 0.00 4.73 12.49 8.92 1.36 0.03 0.12

% Change

0.00 -67.78 -72.54 -13.20 -32.00 -40.72 -60.00 -28.59 -76.38 -33.43 -100.00 -51.97 -25.00 -40.07 -42.60 -11.91 -42.49 -46.15 -53.16 -11.31 -46.51 -46.85 -64.42 -58.05 -72.97 -22.85 -57.22 0.00 -58.02 -69.86 -40.18 -40.74 -34.20 -56.93 0.00 -63.99 0.00 0.00 -57.91 -34.68 -30.06 -13.55 -60.00 -60.53 -58.95 -100.00 -40.77 -38.73 -33.10 -6.72 -49.02 -42.19 -36.79

2008

95 5,693 1,518 96,092 1,514 106,767 169 17,643 5,510 77,409 12 4,666 32 3,739 52,267 304,326 80,398 173 26,756 19,422 3,882 30,155 31,275 9,716 625 47,692 69,803 123 38,419 15,231 64,399 605 113,489 5,731 1,469 86,431 2 3 15,188 28,003 35,447 6,980 593 4,512 24,782 1 101,275 279,854 168,720 31,655 911 1,932 2,023,104

%market share

0.01 0.28 0.08 4.75 0.07 5.28 0.01 0.87 0.27 3.83 0.00 0.23 0.00 0.18 2.58 15.04 3.97 0.01 1.32 0.96 0.19 1.49 1.55 0.48 0.03 2.36 3.45 0.01 1.90 0.75 3.18 0.03 5.61 0.28 0.07 4.27 0.00 0.00 0.75 1.38 1.75 0.35 0.03 0.22 1.22 0.00 5.01 13.83 8.34 1.56 0.05 0.10

2007

0 6,912 2,120 95,786 2,027 111,970 340 17,312 8,570 93,177 49 4,735 36 3,026 56,351 327,126 100,530 52 28,509 17,692 5,964 27,631 44,215 14,302 674 48,967 75,546 1 44,223 18,077 63,784 729 139,811 8,222 2,392 121,001 72 128 22,414 32,918 36,814 4,843 1,299 5,602 30,091 3 113,802 311,061 184,116 28,121 787 2,117 2,266,047

%market share

0.00 0.31 0.09 4.23 0.09 4.94 0.02 0.76 0.38 4.11 0.00 0.21 0.00 0.13 2.49 14.44 4.44 0.00 1.26 0.78 0.26 1.22 1.95 0.63 0.03 2.16 3.33 0.00 1.95 0.80 2.81 0.03 6.17 0.36 0.11 5.34 0.00 0.01 0.99 1.45 1.62 0.21 0.06 0.25 1.33 0.00 5.02 13.73 8.12 1.24 0.03 0.09

% Change

0.00 -17.64 -28.40 0.32 -25.31 -4.65 -50.29 1.91 -35.71 -16.92 -75.51 -1.46 -11.11 23.56 -7.25 -6.97 -20.03 232.69 -6.15 9.78 -34.91 9.13 -29.27 -32.07 -7.27 -2.60 -7.60 12,200.00 -13.12 -15.74 0.96 -17.01 -18.83 -30.30 -38.59 -28.57 -97.22 -97.66 -32.24 -14.93 -3.71 44.13 -54.35 -19.46 -17.64 -66.67 -11.01 -10.03 -8.36 12.57 15.76 -8.74 -10.72

65 5/12/08 10:30:49

tail light

Sub-Prime Time ‘T

is the season to be jolly, or is it? The car buying public has contracted considerably over the past six months and this trend is set to continue into 2009. Prime customer purchases have reduced as these customers realise their current car is okay and will last them a few more years. Prime customers that are buying are more likely to be downsizing their cars to see them through the recession. All customer types are increasingly considering changing their cars for more fuel efficient and smaller cars with lower CO2 emissions, with customers also considering hybrids and bio-fuel cars. The consequence is that there’s a huge reduction in the car buying public and their buying focus has changed in a short time-frame. As a result there’s going to be a much-reduced buying population over the coming years focused on smaller, cheaper cars, and frankly the current level of dealerships supporting this market is too large as there are only so many buying customers to go around. So we’ll see further dealer contraction until we arrive at a point where we have a sustainable level of dealerships to support the level of buying customers. So, what’s the upside to all this? ‘Tis the season to be jolly after all. Well, for small to medium-sized dealers I think there is an upside, as anecdotal evidence suggests that customers are starting to shy away from the larger dealerships in the belief they can get a better deal from the smaller sized dealers. It also appears that some of the large dealerships are finding it more difficult to change with the times and appeal to a rapidly changing buying public. With the likes of Pendragon closing large numbers of their dealerships and shedding 20 per cent of their workforce, I feel that more and more customers will gravitate towards the small to medium-sized dealers.

‘I think the small to medium-sized dealer market can gain considerable value from new customer buying habits and their changed priorities.’ Non-standard buyers are still buying to ‘need’, and our own pre-tax profits are up 65 per cent on 2007 in evidence of this, and at First Response we mainly service the smaller-sized dealerships. So, over the coming two years, I think the small to medium-sized dealer market can gain considerable value from new customer buying habits and changed priorities. Large dealers will continue to move and change slowly, and their lack of local knowledge will hamper their ability to meet local market needs. In contrast some small to medium-sized dealers are still doing well, as they’ve moved quickly to develop a clear and focused business plan that’s right for their market and changing customer needs. Small to medium-sized dealers can react and act more decisively, and this is what makes them so unique. So I urge smaller dealerships to use this unique ability; step back from your current business model, re-think your business strategy and then implement those actions that meet your market and customer needs today, and you’ll still have turkey on your table in 2009.

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

CarDealer.

66 CarDealerIss10.indd 66

PO Box 227 | GOSPORT | PO12 9DE [ISSN 1759-5444] Tel: 023 9252 2434 | www.cardealermagazine.co.uk

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Car Dealer is published Contributors by Blackball Media Ltd (Company No Duncan Chappell, Dan 6473855) and printed Harris, Mike Askew, Mike by Warners. All rights reserved. Conditions of Hind, Dave Timmis, Dave Smith, sale and supply include the fact Car Dealer shall not, without our consent, be lent, resold, hired Chris Jervis and Simon Evans out or otherwise disposed of in a mutilated way or in any unauthorised cover by way of trade or Thanks to... affixed to or as any part of a publication or advertising, literary or pictorial matter whatsoever. Justine Hoadley, Tim Marlow, Dealer is fully protected by copyright Tim Naylor, Linda Baggott and Car and nothing may be printed wholly or in part without permission. Bernard McGranaghan

CarDealer 5/12/08 10:30:51

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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