Car Dealer Magazine: Issue 11 by Blackball Media

CarDealer.

AUCTIONS: The new way to buy cars [p6]

Issue 11 | February 2009 | CarDealerMag.co.uk

Driving the future of the motor trade

TOYOTA iQ

WHY 2009 WILL BE THE YEAR OF THE MICRO CAR ROAD TEST

INNOVATION

Just Rewards

[The clever new scheme that customers will love]

Lamborghini LP560-4 v GT-R

Sod the credit crunch, it’s time to dream with our head-to-head

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start Issue 11 | February 2009

‘Even without using the launch control, the GT-R hits 60mph in 4.0 seconds. Switch it on and that figure drops by around half a second. That’s a remarkable feat of engineering.’ GT-R v Lambo, p24 THERE’S no doubt 2009 will be a challenge, blah, economic woe, blah, blah, crunchy credit, blah, blah, blah. Times are tough for everyone at the moment – you don’t need some poxy writer like me to tell you that. So I’m not going to dwell on negatives. New Year should be about new starts, new challenges – which is why this month we’ve got an issue packed with news and features that can help you. In our Agenda slot, on pages six and seven, we report on a radical new auction for the motor trade that’s being held exclusively online. The brains behind the clever idea are rightly excited about the project – and with headline grabbing offers like no fees for buyers, free delivery and 100 per cent money back guarantees, I have no doubt it’s going to be a roaring success. The first auction is being held on January 19. Make sure you check it out – I know it’s the start of something big. Continuing the positive theme, we’ve also covered the launch of Blue Rewards – a cracking

concept from the Complete Automotive Solutions stable. Essentially it’s a way of getting customers coming back to your dealership for their next new car by offering them a healthy discount. Nothing new there, I hear you say. But these buyers earn their discount by purchasing products online from partner businesses. Think of it as a Nectar Card for car buyers. With partners including Currys, BHS and Travelodge, among many others, I think it’ll be very popular. Check out the details on page 41 to find out more. We’ve got some big plans up our sleeves for 2009 too – and the first of them have already gone live. In an attempt to offer some help – however small – to the trade we’ve launched a FREE motor trade jobs posting board on our website. Whether you’re a franchised dealer principal, independent site owner, or recruitment company, listings are always free. You can add as many vacancies as you want, as often as you want, and it’s very easy to do. Many of our rivals charge you for the privilege of posting on their website – but we don’t. So give it a whirl at CarDealerMag.co.uk now.

In the first week of January we also rolled out our daily email newsletter for the motor trade. Called eCarDealer (see what we did there?), it’s a daily sample of the top stories on our website. We are constantly adding news to our site all day, every day. This month we reported on the SMMT sales figures before even the BBC did, and we beat our trade rivals too! Check out the site daily for constant updates and to get your copy of eCarDealer you can enter your address on the homepage. And finally, in an attempt NOT to fill our pages with apocalyptically depressing news we’ve clubbed together a bunch of happy stories on p20. So if you’d rather avoid the doom and gloom, better turn there now! Happy selling…

James Baggott, Editor

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ignition Issue 11 | February 2009

‘The iQ may be tiny, but it has a huge weight on its shoulders. With Toyota recently announcing it will make its first loss since 1941, the iQ needs to be good!.’ Road Test, p28

dashboard

CarDealerIss11.indd 5

Hammer time!

Trade auctions go virtual

Audi R8 gets a V10 Lambo power for sportscar

Fake cheque scam Fraud alert for dealers

Free jobs board

Post vacancies on our website

Huge launch for Ka Toyota crisis report

Biggest carmaker makes a loss

VAT man’s top tips Happy Page No doom, no gloom

Big Mike’s predictions

forecourt 24 28 33 34 36 38

Lamborghini LP560-4 vs Nissan GT-R Toyota iQ MINI E Blog Off: Car Club Cult Cars: Ferrari 599 Sales Legends: Ford Sierra

features 41

Blue Rewards Clever new rewards scheme

Warranties Why sales are booming

49 51 52 53 54 59 61 63 64 65

Right Click The Facebook generation

Servicing

Our new monthly column kicks off

Dot Com

Looking on the bright side

LCV Insight

New van launches and price cuts

Auctions Products On the Spot Trading Places HPI Valuations SMMT sales figures

End of year and December results

Sub-Prime Time Don Brough’s finance column

CarDealerMag.co.uk | 05

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agenda

The Auction

revolution

Paragon Remarketing is launching online live auctions with no buyer fees, a 100 per cent money back guarantee, and free delivery. Sounds too good to be true – but it’s for real! Richard Aucock chats to the men behind the revolutionary idea

n this business, you don’t get far without a healthy dose of cynicism. So you can imagine our reaction when an email arrived at Car Dealer HQ promising auctions with no fees for buyers, a 100 per cent money back condition report guarantee and free mainland UK deliveries. Oh really? Paragon Remarketing is serious, though. Buyers really will not pay a penny in auction fees – the no-quibble guarantee is real. It’s heady stuff and very enticing. That’s why Car Dealer hot-footed it over to Thurleigh in Bedfordshire to chat to the brains behind the scheme and find out more. You probably already know Paragon from their branded transporters delivering new and used cars all around the UK. Paragon Group is one of the UK’s largest and most successful automotive services companies providing a host of fleet, transportation and management solutions. With more than 355,000 square feet of technical preparation and refurbishment areas and 205 acres of storage facilities at four UK sites – Thurleigh, Upper Heyford in Oxfordshire (formerly QEK), Grimsby and Immingham in Humberside – Paragon refurbishes more than 100,000 vehicles annually and moves some 500 vehicles daily on a fleet of 65 transporters. Now Paragon has married its existing services with a new online auction and remarketing platform. It’s this tie-up that has made Paragon

Remarketing possible, as the firm has been able to reduce costs by utilising other arms of its business. ‘Taking out processes, time and costs wherever possible is our mantra,’ said managing director Peter Davies. ‘It’s the dealers first, and ultimately consumers, who pay the costs of bringing cars to market, including traditional auction fees. ‘Paragon is simply stripping out all possible costs and passing those savings directly on to our buyers – this is how we’re able to offer zero buyer fees.’ That’s the premise, then. You can’t deny it makes tremendous sense, especially at a time when firms are trying to streamline inefficiencies out of their business. But how will Paragon facilitate it? While touring the mind-bogglingly large site to show us how, Davies explained: ‘Online auctions never realistically had a chance until now. It’s only relatively recently that the internet has become a part of most people’s every day lives – we think nothing of paying bills, banking and making quite large purchases online. ‘At Paragon we believe its time to leverage this now accepted familiarity and confidence in the internet and bring the UK’s dealers the cost savings it can offer.’ But how about that confidence factor? Still unsure about what might be delivered? Davies was both frank and bullish on this front.

Paragon Remarketing’s team

Peter Davies

Malcolm Fryer

Paul Joyce

Steve Hammond

‘We recognise that establishing and maintaining confidence in our business model, our systems, in our vehicle descriptions and our customer services will be key to our success,’ he says. ‘But we are very confident. Paragon has a great track record of consistently preparing, in-fleeting, de-fleeting, refurbishing, inspecting and transporting vehicles to the highest standards for manufacturers and other demanding customers. It’s what Paragon does. ‘We offer a simple guarantee; a no-quibble 100 per cent money back condition report guarantee. Anyone who purchases from Paragon’s online auctions – if they’re not happy that the vehicle matches our advertised description, then simply don’t accept it. ‘Tell the truck driver to take it away. No questions asked. No fees charged or withheld. And we’ll have your money back on its way to your account by the next working day.’ That’s quite an offer, Davies? ‘I guess it is, but I also think it’s only fair and good business sense on our part. ‘Why shouldn’t a buyer expect a seller to guarantee what’s being advertised? Paragon does what it does. We do it well. We have skilled people. Solid systems. A track record. That’s why we have no hesitation in providing this guarantee.’ He shows us the indoor photo area that has been built. After multiple inspections, cars will be driven from preparation and valeting, into

06 | CarDealerMag.co.uk CarDealerIss11.indd 6

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First auction kicks off on January 19 – don’t miss it

Paragon Remarketing delivers cars for FREE PARAGON Remarketing auctioneer and director Paul Joyce can’t wait to get the first auction going. ‘Our first online live auction kicks off on January 19 at 3pm,’ he told Car Dealer. ‘We’ll offer 100 cars; a great mix of brands and models – all quality products – in short and punchy events that are super convenient. ‘And we’ll be doing regular online live demos. We’ll be e-mailing registered buyers with the

Buyers log on to the internet to snap up Paragon Remarketing’s cars

this zone. Four standard pictures will be taken, and uploaded to the database in minutes. Married to already-downloaded information from CAP and HPI, this generates a complete, illustrated vehicle listing. Back at base – the comfortable ‘departure café lounge-style’ auction HQ – Davies reveals that all cars offered will be sold exclusively online on Paragon’s bespoke system. Buyers can also visit Paragon to be at the auction as it is being broadcast live as a stepping stone to moving online. ‘We offer dealers the chance to physically attend our online live auctions, see the cars at their convenience up to a week ahead and then

take part using loaned laptops,’ said Davies. Ops and IT manager Steve Hammond tells us Paragon runs real-time technology, which is extensively used in the US. Two digital cameras will be trained on ex-Measham man, sales and events director Paul Joyce. He’ll conduct live auctions from the HQ which you’ll view over the net as if you were in the room: you take part not by raising your hand, but by clicking your mouse. ‘You can make incremental bids, tactical bids, go fast or slow; you can even virtually stand right at the front of the lectern and make a bully bid, if you so wish,’ says Hammond. ‘It’s a level playing field. Dealers will be impressed how easily they can make this system work for them.’

details so they can try out the system for themselves in advance. ‘And any weekday between 9am-3pm from January 12 on, buyers can come along to Thurleigh at their convenience to see the cars for themselves. ‘Once dealers have seen it, they’ll totally get what we’re doing and they’ll know they can rely on Paragon; they’ll see that they really can sit in their office or at home and bid with total confidence.’

Paragon also has a portable live auction system. Put simply, it’s a techie-trolley with twin computers which Joyce can use to conduct live auctions from anywhere there’s internet access. ‘We can effectively stage and host live auctions anywhere for closed or open groups of buyers – this way we can provide unique and cost effective special auction events to our vendors and also bring live auctions and social events to our buyers across the country,’ adds Davies. He is realistic, though. ‘Our biggest challenge is to gain the confidence of our buyers – to help them become 100 per cent comfortable with us, our systems and the business environment we create. That’s why we offer the guarantees we do and why we really are a trade-only auction.’ Malcolm Fryer has also joined Paragon as the new company’s commercial director – you’ll probably know him from two decades at Ford. So, why the move across? ‘I see that this is the future,’ he says. ‘The auction model has been unchanged for years. Just because we’ve always done it like that doesn’t mean there isn’t another way. I think dealers will love Paragon’s online live auctions; the (zero) cost, convenience, credibility.’ This is the start of something big. Get online and register at www.paragonremarketing.com – see the auction catalogues, try out the live demos and, better still, be ready to join in the first online live auction at 3pm on Monday, January 19, with your mouse at the ready! [CD]

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dashboard Make more buyers aware of finance!

MAKING more customers aware of the benefits of dealer finance is key in the downturn, says the FLA. More private buyers are opting for dealer finance than ever before – it’s UP 46 per cent. FLA’s Paul Harrison said: ‘Raising consumer awareness of the finance options in the showroom, and their benefits, could make a big difference for dealers in current market conditions.’ Harrison, p20

Ford Retail opens three new dealers THREE new Ford dealerships have opened for business. Polar Ford Barnsely, Heartlands Ford Perry Barr and Lindsay Ford in Belfast’s Lisburn sees Ford Retail’s total investment last year exceed £10m. This includes £5.3m on the East London Dagenham Motors superstore alone.

Arnold Clark’s half price sale now on

Audi puts Lambo V10 in R8 AUDI has confirmed it’s putting the acclaimed V10 from the Lambo Gallardo into its R8 supercar. The second R8 model will be powered by the 5.2-litre V10 FSI petrol engine and dealers will open their order books in January for first deliveries in the spring. The V10 will be joined later this year by a 6.0-litre V12 diesel too which will be as quick as the standard V8 model! The V10 version will be available with a manual gearbox costing £99,575, or with the firm’s R tronic sequential shift transmission at £104,665. The awesome 5,204cc unit produces 525bhp at 8,000rpm and 530Nm at 6,500rpm compared to the standard car’s 4.2 V8 with 420bhp and 430Nm. The new car will hit 60mph in 3.7 seconds, have a top speed of 196mph and a combined mpg of 20.6. Other highlights include the world’s first all-LED headlamps as standard, plus Audi magnetic ride adaptive damping and Bang & Olufsen’s awesome audio system. The FSI V10 petrol engine, mounted longitudinally directly behind the cockpit, is almost identical in construction to the unit powering the

recently announced R8 LMS that will race at customer level in the GT3 class. Audi says by mounting the 10-cylinder unit as close as possible to the centre of the R8, its engineers have achieved near perfect 44 per cent front / 56 per cent rear weight distribution for optimum balance. Lambo v GT-R, p24

Tata pumps cash into JLR as crunch begins to bite

TATA – Jaguar Land Rover’s Indian owner – had to inject ‘tens of millions’ ARNOLD Clark has of pounds into the business at the slashed prices by 50 per end of 2008. The cash came at a time cent in a huge January JLR was reportedly in talks with the sale. All 145 Arnold Clark government for cash to help it stave car dealers have been off the economic downturn. retailing offers on more At the time Car Dealer went to press, than 10,000 cars. it was believed the Tata cash was to be Sir Arnold Clark said: used to tide the business over while ‘We are expecting to see the government evaluated the viabila lot of customers both ity of state aid. old and new despite the AT063_CarDealerQtr_Gee 24/11/08 1 as Ministers have 17:19 delayed aPage decision economic climate.’ they are keen not to set a precedent

for other industries. Business secretary Lord Mandleson is said to be not sure whether the business actually needs cash to see it through the recession. This is thought to be because Tata has already pumped hundreds of millions into the firm since buying it from Ford in March. JLR employs around 15,000 people in the UK and many more suppliers are dependent on the maker. For updates see CarDealerMag.co.uk

Plug pulled on G4 Challenge LAND Rover has pulled the plug on the G4 Challenge to focus on ‘product launches’ instead. ‘Given the severity of the global economic downturn and trading conditions, we need to make some tough decisions and that means prioritising our budgets on new product launches,’ said boss Phil Popham.

“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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Fake cheque scam warning for dealers Local paper reports traders across the UK have been scammed with fake cheques for online stock A WARNING has been issued after fraudsters targeted car dealers across the country in a fake cheque scam. Dealers have been emailed via a popular online classified sales website and were then sent a cheque for the vehicle which included extra cash for shipping to Europe. The cheques, purporting to be from Portsmouth City Council, are fakes and subsequently bounce – but the scammers hope dealers have delivered the cars before realising. Local newspaper The News, in Portsmouth, Hants, reported that the city’s council had been contacted by six dealers in a week, but the authority expected to hear from many more. ‘Why the fraudsters have decided to forge our cheques, we don’t know. But they are fakes and nothing to do with us,’ Roger Ching, the council’s director of resources,

Burgess Just checking told the paper. ‘As far as we know, no-one has actually lost out from this scam yet, but we wanted to warn people. One email we have seen was apparently from Switzerland, while the cheques have come from Spain. ‘It seems the scammers are hoping to get either a vehicle for nothing, or the seller’s banking details.’ The cheque scam is very common in the motor trade, but this is the first time Car Dealer has heard of the payments purporting to come from a local council. If you’ve heard of a scam other dealers should know about tell us and we’ll tell the trade. Reported online before any other motor trade title at CarDealerMag.co.uk

BMW reveals Z4 with folding metal roof

BMW have revealed details of the new Z4 – and it’s the first roadster from the firm to feature a folding metal roof. The new car will hit dealers in May and will be initially available with three engines: the 2.5-litre 23i, the 3.0-litre 30i and a tuned 3.0-litre twin turbo in the 35i. The 35i unit is the acclaimed International Engine of the Year and produces 306bhp

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at 5,800rpm, propelling the car to 62mph in 5.2 seconds and on to a limited top speed of 155mph. Joining this model in the launch line-up are the Z4 sDrive23i and the Z4 sDrive30i. Both use the same magnesium aluminium alloy engine, but with varying capacities. The car comes with an electro-hydraulic retractable hardtop roof that can be put up or down in 20 seconds.

Wave goodbye to expensive wasted mailings for ever

hen sales are down, customer contact is crucial, but my investigations reveal that typically, 25 per cent of most dealer’s customer databases are inaccurate. This is shocking when we all know that customers are the lifeblood of a dealer’s business. In a tough market it’s more important than ever to grab every opportunity to communicate with existing customers and employ clever methods to bring new ones through the door. Why then do so many continue to neglect their own data or underestimate the power of giving it a good old fashioned cleanse? When a customer moves house or sells the vehicle they have ‘It makes sense purchased from a dealer, we don’t expect them to to grab every pick up the phone and opportunity to tell us. By using unique drivers’ communicate data, gained from reliable with customers – sources such as the DVLA and Electoral Roll, data HPI MotorVision cleansing puts you in conwill help you do trol, reducing the element just that.’ of chance by removing duplicates, confirming addresses, deceased customers and whether the vehicle has changed keeper. Now you can wave goodbye to expensive wasted mailings and missed opportunities. Once you’ve refreshed your database, the next step will be to create an effective campaign to win and keep new customers. The most important part of this is the right prospects for your business. Lead providers such as HPI’s newly launched MotorVision can do this for you. These services can provide dealers with the quality, targeted customer prospects they need to supplement an existing customer base. You can target potential customers in your territory who are likely to drive the make of vehicle that you sell or you can choose leads for competitor makes and models to try to convert them to purchasing your brand. The key to the success of any leads-generated campaign will be adding prospects who do not already exist on to your database. Hence, finding a supplier of leads who will match the leads against your existing database is key. It makes sense to grab every opportunity to communicate with customers. HPI MotorVision will enable you to do this, helping to target the right customers at the right time, maximising your relationship and driving up sales.

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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Post your car jobs for free on our website Why pay to post your jobs online when you can do it for free with Car Dealer?

Tew

CAR Dealer Magazine has launched a free jobs posting board for the motor trade on its popular website. Any motor trade business – from an independent trader looking for a new valetor to a recruitment company with hundreds of vacancies – can add their jobs to the site quickly and easily for free. ‘With the car industry struggling and automotive jobs getting axed left, right and Free job listings at CarDealerMag.co.uk centre we decided to do something about vacancies there are a number of upgrades it,’ said editorial director James Baggott. available – such as having the job details ‘It’s absolutely vital that when a position printed in Car Dealer for just £9.99! Full is available in these troublesome times it details can be found on page 56. is promoted to as many people as possible It’s been a busy few weeks for our website and not restricted to the companies that can afford to pay for the privilege of advertising team as we’ve just launched a daily email newsletter too. While you were tucking on jobs boards. into turkey we were putting the finishing ‘We’ve teamed up with our friends at touches to eCarDealer – a daily update of Skupe Net to provide the service and once news sent directly to your inbox. If you’d registered you can post as many jobs as you like to get the email simply enter your like, as often as you like.’ address on the homepage of our website. Simply log on to CarDealerMag.co.uk, ‘These are just two exciting projects we’ve enter your details and you’ll be emailed got up our sleeves – look out for a whole a username and password. And if you’re load more in 2009,’ added the editor. looking to make more of a show of the

300bhp Focus RS to cost less than £25k FORD will sell its Focus RS from £24,995 when the 300bhp superhot-hatch hits dealer showrooms in March. The 2.5-litre turbocharged model will hit 60mph in under six seconds, according to Ford, and on to a maximum of 160mph. Based on the current ST, the Focus RS uses the five-cylinder hot hatch’s front-drive engine layout. Engineers have fitted a special ‘RevoKnuckle’

front suspension. This, along with a Quaife limited-slip differential, allows the Focus RS’s considerable power to be put down without wheelspin or torque steer. It also helps keep the list price below the £25k mark. Tasty 19-inch alloys and a twinblade rear spoiler will mark the RS out. It also has a special bonnet, front bumper and side skirts. It’s offered in three colours – Ultimate Green, Performance Blue or Frozen White. Test drives will be starting early in 2009, and more than 1,000 orders have already been placed. You can be sure Car Dealer will be among the first to bring you news of this exciting new RS Focus – especially as the editor shelled out on an ST late last year… Doh!

Net gains Need more revenue? Then tap your website’s potential

any of the dealers I speak to are desperate for an extra revenue stream. But, if they have a website, they have one right there, ready for exploitation! I’m talking about promoting other areas of the business. Take one guy I spoke to recently. He has lots of automotive spare parts, many of which are not in production anymore. So, he created a parts website, as a sub-division of his main site. Result? Extra functionality – and, he says, a healthy extra revenue stream. This is something every dealer can think about. Of course, the website’s core function should remain selling cars. But, can it also help promote other services? Can it, say, drive customers to ‘I’ve not heard an your service department, ensuring full utilisation economist offer of your workshops? A well-managed promotion any optimism for scheme and e-mail mar2009 – but keting campaigns really there are still can pay dividends here. It’s all a matter of opportunities for thinking how to get extra smart dealers.’ revenue from the people visiting your site. Servicing and spare parts are ideal for this – but what, you’re going to ask me, if you don’t have a service bay? Well, what about affiliations? If you just sell cars, customers will go elsewhere to service the car they bought off you. Solve this problem by striking up an affiliation with a service partner. It won’t bring in huge revenues, but may earn you a little cash. If you go from just selling cars to offering an all-inclusive service, customers will both not go anywhere else, and also spend longer on your site. Just make sure you’re not doing plain link-throughs – keep them on your site! This is why promotional offers are so great. You can draw people in with a snappy headline on your homepage – and ensure they visit it in the first place with a well managed e-mail marketing scheme. Why not go the whole hog and be creative? Spring is coming up in a few months: look into the possibility of introducing a ‘spring clean’ for customers’ cars, through an affiliation with a smart repair service. While the customers are in, you’ll have the opportunity to value their car for a part-exchange: and you can say it’s now worth more, as they’re had all the dings and dents fixed! I’ve not heard one economist offer any optimism for 2009 – but there really are still opportunities for the smart-thinking dealer.

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 Looking back on a troubled year for the UK car industry

iven an economic background that seemed to make headlines on a daily basis it is no surprise that in 2008 we saw unprecedented falls in used car values, easily comparable with anything seen in the housing market. By the end of the year, fleet cars were down year-on-year by £918 (14 per cent) and dealer part exchanges by £356 (15 per cent). The average performance against CAP Clean for a car sold at BCA was at 89.59 per cent and that’s lower than at any time in recent years. Yet early in the year there was plenty of cautious optimism. Industry watchers had seen values begin to stall as long ago as the autumn of 2007, around the time there was the initial run on Northern Rock. The end ‘A combination of that year was tough of rising fuel and expectations were not great for January, yet we all prices, creeping came back to a market that inflation and while not on fire, was at least smouldering fiercely. signs of a US But then the combination meltdown saw of rising fuel prices, creepthe used market ing inflation and the signs feel the pain.’ of economic meltdown in the States started to take their toll. Post-Easter there were obvious signs of distress. Suddenly there was an overwhelming interest in frugal small cars and alternative fuels, balanced by a massive indifference to almost any vehicle with a thirsty engine – from 4x4s and SUVs to executive saloons – unless it was priced at well below guide values. The budget end of the market stayed busy, but there was a definite watershed in demand at around £5,000. Every part of the motor industry welcomed the Chancellor’s efforts – and those of the Bank - late last year to put more money into consumers’ pockets and free up funding. But despite the significant cuts in the base rate and the fall in VAT, the only real benefits so far have been felt by those with tracker mortgages. So what about the year ahead? Until motorists find it easier to raise finance and some confidence returns to the marketplace, there is nothing to suggest that used values are going to climb – but even so 2009 should not see a repeat of the price patterns experienced in 2008. A used car is the principal means of transport in around three-quarters of households and if a car needs changing, then another used car will be bought. And with most great value, motorists have rarely had a better time to buy.

Auctions, p54

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

Ford rolls out biggest ever launch for Ka Baby city car joins new Fiesta as Ford’s downsizing offerings excite dealers FORD has told Car Dealer the new Ka will be treated to the marque’s biggest-ever model launch programme. The Blue Oval expects to sell 25,000 in 2009 and with the baby city car joining the recently launched new Fiesta, the marque undoubtedly has the right products just as many buyers are downsizing. ‘The Ka has become a design icon and has the most loyal and satisfied customers of any variant in the Ford range,’ Tony Dixon, Ford project and business manager, told Car Dealer. ‘We have improved margins for dealers, reduced costs and created an emotional new design for this sixth generation model. We’ve made it more affordable too, fun-todrive, added quality, created lower running costs and improved driving dynamics. ‘The feedback we have had from the dealer network is very positive.’ Ruth Pauli, chief designer, added: ‘It is cuter, cheekier, has lots of interior design bonus features and better control through bends. There’s electric power steering, reduced tyre noise, an excellent safety cell, up to six airbags, a petrol variant which is 21 per cent more efficient and a completely new 16-valve common rail diesel unit.’ The Ka costs from £7,995 rising to £10,195 and has gained more than four inches in height compared with its predecessor. Brits have bought 500,000 units since the Ka went on sale in 1996 and total sales have topped 1.4 million units.

Bond girl Olga Kurylenko with the new Ka ‘Most of all, the design is emotional,’ says Dixon. ‘And it is affordable as well as being safer and having lower running costs. We have very high hopes for the new generation model and the feedback from our network has been impressive to say the least.’ Currently, Ford has just over 16 per cent of the total UK market and the company has reduced daily rentals, upped private sales and given its dealer network ‘much more to play with’. The sub B-Segment of the market in Britain now accounts for eight per cent of the total compared with 4.3 per cent in 2003. The Ka is the market leader holding 20 per cent of the sector. RICHARD GIBBON

Mitsubishi’s moves to support dealer network MITSUBISHI has launched a support plan to help dealers maximise their profits in the recession. Recognising the strain its dealer network is under, the manufacturer has come up with a host of measures to help troubled traders. The package includes a reduction in charges which could result in an astonishing £50,000 saving per annum. This could increase to a whopping £100,000 a year for bigger dealers. New product plans are also planned to cater for green-thinking and downsizing buyers, with a low CO2 ClearTec range planned and the ground-break-

ing all-electric i-MiEV. Cost and finance areas have also been looked at with measures centering on reducing the cost of a number of key financial areas affecting dealers, such as vehicle stocking costs and demonstration requirements. Mitsubishi will also offer website revamps totally free of charge. ‘For some in our industry during 2009, survival will mean victory,’ said Mitsubishi UK CEO Jim Tyrell. ‘We have clearly shown that our dealers are key to our ongoing success and have backed that up with real benefits.’ NICOLA LINNINGTON

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World’s biggest car firm makes a LOSS! First loss in 71 years, jobs axed and factory stoppages – just what is happening to Toyota?

Rapp Marketing 2009 is certainly going to be tough – but there are things you can do to get through it!

here’s no two ways about it – 2009 is going to be a challenge as never before. But that’s not to say a challenge has to be bad… If you can meet it head-on, it can actually be great. Everything we know tells us that, in the coming months, car buyers will be more cautious than ever. They’ll be researching purchases carefully and doing even more looking before they leap. And we already know that some eight out of 10 people searched online for their next car, which is why Motors.co.uk has refined its car search to help consumers find exactly what they are looking for. With just a few clicks, potential buyers can see all the cars they’re interested in, and none of the ones they’re not. There’s plenty of anecdotal evidence that suggests smaller cars look likely to be the sales story of 2009. The value for money offered by big cars relative to the little ones already shows which are selling. To help smaller and independent dealers, Motors.co.uk has also introduced a new service that’ll help small-scale operators tailor their advertising as their stock changes. The new ‘Pay as you Go’ service provides affordable and easily controllable advertising. Dealers register online with Motors.co.uk and then pre-pay for as few as five advertisements with prices starting from as little as £35. Then they post ads as they need, and can add up to 10 photos as well as video, add descriptions or adjust prices whenever they need. Dealers also get complete feedback on how many would-be buyers have looked at their stock. For more information or to advertise your stock, no matter how big or small your selection, Motors.co.uk has something to suit. Maybe it’s time you checked out what we offer – it might just be the key to getting through the downturn!

‘With just a few clicks buyers can see all the cars they’re interested in, and none of the ones they’re not.’

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

TOYOTA has warned of its first operating loss in 71 years – one of the biggest shocks of the global downturn. The massive Japanese maker has predicted a full-year loss of more than $1.5bn, the first time the maker has entered the red since 1941! A slump in sales is the cause with exports down and US and European sales plummeting a third. The Japanese Yen has also risen against other currencies which means Toyota generates less cash from foreign sales, core to the company’s performance. There have been no full-time job losses so far but there are fears of cuts in Britain (see below), as the Japanese giant has already laid off agency and temporary workers. ‘When Toyota makes a loss,’ said one commentator, ‘you know the whole industry is in trouble.’ Toyota this year overtook Ford as the world’s biggest carmaker. The profits warning has led to rumours the firm might pull its F1 team too – but this has been denied by the maker. Toyota said it will not follow Honda’s lead

Will the iQ solve Toyota’s woe? and pull the plug on its F1 team. The principal of Toyota’s outfit told The Times that the carmaker planned to stay in the sport. Team boss John Howett said he thought it was unlikely the team would be canned. ‘I think we are managing the business properly, and I am confident that we will be there,’ he told the daily paper. He added that Katsuaki Watanabe, Toyota’s president, had confirmed the company’s commitment to Formula One. Despite shelling out £2bn since joining the sport in 2002, Toyota has so far failed to win a race in F1. Toyota iQ Road Test, p28

UK TOYOTA JOBS AT RISK UP to 800 UK Toyota jobs are at risk following the firm’s announcement it would make its first loss. The possible job losses – some 15 per cent of Toyota’s UK workforce – would add to the 40,000 positions expected to go

in the UK car industry in the coming three years. Toyota has a manufacturing plant in Derbyshire and an engine production facility in North Wales. Production at these plants has already been cut.

Toyota has also halted production at its 12 Japanese factories for the first time since 1993 in a bid to shift unsold stock. The stoppages – in February and March – are likely to be the first of many, say sources.

Skoda targeting two per cent market share SKODA has targeted a two per cent market share in the UK by switching its strategy from retail to business car sales. Martin Burke, head of business sales, Skoda UK, explained to Car Dealer that this will help the brand achieve its goal of 34,300 sales in 2009. More than half of these will go to the fleet market. ‘In May 2008, Skoda moved away from retailer-led business sales, by launching Skoda Agency,’ said Burke. ‘This is a direct buying channel from Skoda UK, meaning all sale negotiations are carried out by a central team in Milton Keynes.’ Car dealers become the customer inter-

face of this operation. ‘This national focus allows the brand to build relationships, and strike deals, with key fleet operators,’ said Burke. The marque has 90 dealers in the scheme that receive training on taxation, funding methods, customer qualification and legislation. What’s in it for dealers? More sales, that’s what. ‘We are working with individual retailers on long-term plans to improve their capacity,’ added Burke. RICHARD AUCOCK Search for ‘Skoda’s Big Plan’ at CarDealerMag.co.uk for more

16 | CarDealerMag.co.uk CarDealerIss11.indd 16

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Dealer’s VAT mistakes Ross Bartholomew warns of the VAT pitfalls for car dealers VAT – as we know – is self-accounting. You do it as you go each quarter. Errors can creep in though. When they do, Car Dealer’s VAT expert Ross Bartholomew warns: ‘Customs will descend on dealers from a great height!’ He says that, at the moment, customs are taking a particular interest in the motor sector. Dealers therefore need to ensure they’re whiter than white – or they could face crippling penalties. Following on from Bartholomew’s revelations in last month’s issue on claiming VAT back in time for the March 30 deadline, our expert has come up with some top tips for dealers. Garages who subcontract MOTs Multi-franchises who don’t have the space for all the MOTs they

take in are particularly susceptible here. ‘There are numerous VAT pitfalls on how you account MOT income,’ says Bartholomew. Deposits on vehicles ‘These are being sought more readily than they used to, in order to get cashflow. However, VAT is live on them! Not all dealers know this…’ Bumping ‘This is the biggest thing of all,’ says Bartholomew. ‘It can put dealers If you missed last month’s VAT reclaim story search for ‘VAT back gold rush’ at CarDealerMag.co.uk

out of business.’ What is it? Say, someone buys a £10k car, and has a £2k part-exchange. If the finance has minimum per cent deposit stipulated, say 25 per cent – well, that’s not met here. However, if the old car is £3.5k, and new one £11.5k, it still only costs the dealer £8k – but the deposit is MORE than 25 per cent! Nobody is left out of pocket, so everyone’s happy? ‘Not the VAT man! VAT is due on £11.5k, not £10k. If they get it wrong, a whole new VAT issue can materialise for dealers. Some have seen bills of £300k.’ Partial exemption ‘A particular sticky area is finance commission kickback. Not all is sans VAT, so they can’t claim back all the VAT on costs… and customs are hitting people with big bills as a consequence.’ Bartholomew adds. ‘If you just sit on it and the VAT man comes, you could get penalties AND interest.’ For help, call (01284) 763311. RICHARD AUCOCK

Porsche ups its VW stake again PORSCHE has increased its stake in VW to more than 50 per cent – but it still doesn’t control the firm. The move is the latest by the German sportscar manufacturer as it looks to increase its shareholding in VW to 75 per cent in 2009. In the past, VW has tried to resist bids made by Porsche, but recently the companies reached an agreement to allow Porsche a bigger stake in the manufacturer, which owns SEAT, Skoda and Audi among others. However, it is understood Porsche will not have any controlling power in VW, even if it increases its stake to 75 per cent. The state of Saxony controls 20 per cent of VW and has the power to decide how the company is run. Porsche would need more than 80 per cent of the shares to control the manufacturer. Nicola Linnington

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9/1/09 12:58:52

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Motorpoint’s record sales figures for 2008 Harrison Training matters

As buyers return, make sure you mention finance

he fallout of the economic downturn has now caught up with our industry. Private new car registrations have fallen sharply, dealers are struggling to shift surplus stock and at the time of writing this there is talk of a package of measures on the cards from the government to help the industry. Despite the unprecedented conditions, the Finance and Leasing Association saw an increase in the market share of dealer finance in 2008. Independent research has shown that car buyers have historically viewed dealer finance as uncompetitive. However, consumers are now finding it increasingly difficult to secure credit elsewhere and are turning to their local dealership to fund their ‘Consumers are next car purchase. finding it hard It’s because of this that to secure credit showroom staff need to ensure that, as consumelsewhere and ers return, the finance are turning to proposal they receive is competitive, appropritheir local ate and professionally dealerships.’ presented. Last month’s column introduced the FLA’s Specialist Automotive Finance initiative, which has been designed to improve the standard of information provided to consumers. Dealers can register for the free-of-charge competence test at SpecialistAutomotiveFinance.co.uk In addition to the SAF test, the FLA has also developed FinancingYourCar.org.uk. This is an impartial site designed to guide consumers to the most suitable finance product. The site provides a summary of each product and its benefits, a jargon-busting ‘finance speak’ tool and advice on consumer protection. Visitors are also provided with a buying checklist to ensure they have the correct documentation to complete their purchase. All of this helps to build confidence ahead of a trip to the showroom. While the site is designed to be used by consumers, it is also an ideal tool for dealer staff to view alongside potential customers. FinancingYourCar.org.uk and the SAF test will help to build the quality of information available to consumers, at a time when you should be seeing an increased number of finance enquiries. Despite the economic ‘doom and gloom’, there are still opportunities for dealers. Just make sure you discuss finance with every potential customer.

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

Fed up with the gloom? Here we bring you some happy motor trade stories. Enjoy! MOTORPOINT has announced record figures for 2008 – and says it expects more of the same in 2009. Last year’s sales were the best in the company’s 10-year history with the outlets selling 35,000 vehicles – an impressive six per cent increase. What’s more, the firm expects its sales to hold up this year, too: ‘The company believes 2009 will be another year of continued growth,’ said a spokesman. ‘In spite of the current economic downturn.’ David Shelton, MD of Motorpoint, said: ‘We are extremely optimistic about car sales nationwide in 2009. ‘It is a difficult time for retailers in general, but as our results have demonstrated, there continues to remain huge demand for new and nearly new cars at exceptionally low prices. We don’t see anything changing in the foreseeable future.’ The company boasts that key to its success is its independent business model. This is not reliant on control by manufacturers and their dealer networks.

Motorpoint also says that demand for finance has continued to rise. Its PCP scheme is proving particularly popular, accounting for an amazing 85 per cent of sales. This is up from 69 per cent the year before. Motorpoint predicts that this figure will climb even further next year, as more motorists look to reduce their household costs as a result of the credit crunch. Sales of traditional HP fell by 17 per cent.

Remarketing firm reports sales UP a third USED car remarketing specialist GRS is another firm bucking the trend of a falling used car market – with sales up a third. Direct sales to car dealers are the company’s core business and GRS reveals independent and franchised dealers focusing on used cars is the reason for its success. GRS remarkets nation-

business development director from GRS, said: ‘An increased demand for quality used cars from dealers has meant they have turned to trusted sources of stock. ‘Our ability to deliver vehicles from phone wide, from a pool of order to forecourt more than 30 manufacturers. It has some 6,500 within two days helps dealers react to local dealers on its database. Theo Kortland, pictured, demand.’

Ford shifts 11,500 new Fiestas in just 77 days AT last... some positive news! Ford shifted an impressive 11,500 new Fiestas in just 77 days. More than 9,000 of the city cars went to retail customers – equating to almost 80 per cent, a substantial increase on the normal retail rate of 60 per cent. Ford says the Zetec model remains the most popular, taking 51 per cent of sales. Zetec models have been introduced with a £500 customer saving and free Bluetooth

which has gone down well with buyers. The most popular colour has been Panther Black (21 per cent) followed by the new Hot Magenta (15 per cent). Mark Simpson, marketing director for Ford of Britain, said: ‘Dealers are telling us that people are coming out of Peugeot 207s and Renault Clios to get into the new Fiesta. Fabulous style and a great price are the reason. We expect to attract even more sales when our ECOnetic model goes on sale.’ More happy news, p52

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big mike

We can, and we will, find a way out of this mess... H

ands up who’s having a happy new year? Thought not. But while things aren’t pretty out there at the moment, the tide will change and the good news is that it isn’t that far away. I’m old enough to have lived (and flogged used motors) through three recessions and I know that, while times are tough now, our industry can and will get through it. We might lose a few colleagues along the way, the weaker dealers may struggle, but for the vast majority, with tough businesses, tough personalities and the mental agility to deftly sidestep the ridiculous nonsense that the media spout out of the nation’s TV sets and chip paper to scaremonger us all into bolting our doors and living off tinned food, there is a future, and it starts now. Indeed, the used car market is a good barometer of the country’s economy as a whole. Like the housing market and the new car market, the used scene is currently in a kind of limbo, ticking over, the odd car finding a new home here and there to people with savings, and everyone else waiting to see what happens next. The single biggest complication, of course, is the lack of flexible finance. Two or three years ago, anyone could walk onto your lot and leave with which ever motor tickled their fancy, regardless of its screen price. They could live in a caravan and earn £10 a week, but still drive around in a BMW 535i worth £14k providing they could leave the mortal remains of their old car behind as full deposit. Meanwhile you, Johnny Dealer, pocketed the car money and a wee wedge from the finance company as your commission – everyone was happy, and you didn’t really care whether or not the customer defaulted on their loan and ended up minus their kneecaps. These days, customers like that have disappeared, and the car industry is rapidly taking stock

What do rich people drive? Ford Escorts, apparently, but perhaps not lurid yellow convertibles of the fact that about a third of its total sales were to people who actually couldn’t afford a car, new or used. Once the dust settles, and the auction houses have offered all the hideously maltreated, abused repo rubbish that destroys your faith in human nature, the used car market will find a balance again. The customers will change – we’re constantly being told by the money experts that there are more savers than there are borrowers and this much is true. The difference is that savers drive around in 10-year-old Escorts they bought seven years ago while keeping their vast personal wealth tucked safely away in a savings account, ISA or mattress, while borrowers drive around in as new a car as they can afford the monthly repayments for in order to appear rich. So the rich drive crusty old bangers and don’t care, and the poor drive shiny new metal and do. It’s a funny old world. Once savers, who know their financial onions, begin to realise that there really has never been a better time to buy anything, from a weekly grocery shop to a six-bedroomed detached, they’ll make their carefully considered purchases. It is, after all, savers who do all the spending during a recession, and who keep it all to themselves

at other times because they don’t want to pay over the odds. They play the game far better than most. What this means is that good quality, unabused recent stock at a market adjusted price level will suddenly become prime fodder as those with a few spare pennies look to purchase their next longterm investment, while dog-eared rubbish bought on the nevernever will be exactly where it deserves to be – in the scrapyard. If nothing else, the recession will deliver a cathartic approach to the car market. No longer will the car be a disposable consumer durable that we all abuse and destroy, but one we look after, preserve and value – and that, dear reader, is where the good news comes in. If people value cars and all the rubbish is flushed out the system, car values go up, your stock won’t lose its value so quickly that you have to boot it out the door just to get rid, and the used car market will be a calmer, less cut-throat place. If you can weather the storm, you may even look back at this as a real turning point… Good luck! Who is Big Mike? Well, that would be telling. What we do know is he’s had 30 years in the car trade and picked up some seriously funny tales along the way.

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NewOrder? Has Japan finally cracked the supercar code? A head-to-head with Europe’s finest should settle any arguments...

n 1967, Spen King – the man responsible for the first Range Rover – told his bosses ‘I think we ought to watch out for the Japanese.’ His prediction, based on seeing the very first Japanese cars hitting UK shores, was laughed at. Within 10 years, however, King’s words came to haunt the British car industry, as wave upon wave of cut-price, high-quality cars from the Far East landed on UK shores. But while most of Europe’s mainstream car makers have taken a battering from the Japanese over the past 40 years, one area of the car market has proved strangely resisilient to the wily design and production methods of Far Eastern makers – supercars. Although even the most casual of motoring historians will be able to name a handful of high-performance Japanese machines that have made their mark over the years, not one has ever mounted a sustained challenge to the likes of Porsche, Ferrari and Lamborghini. But now there’s a new kid on the block. And this time, it seems that the Japanese have read the rulebook first. The Nissan GT-R not only comes with an impressive racing pedigree, it looks the part, and offers more bang per buck than anything in the class. At a whisker under £60k for the whistles and bells Premium version, the 485bhp newcomer looks staggering value for money. Don’t bother looking for something similar in the price lists – it doesn’t exist. So does the arrival of the GT-R mean that the likes of Lamborghini and Ferrari are quaking in their Gucci boots? Well, not yet. The world’s greatest supercar makers haven’t survived for as long as they have without knowing their market, and it’ll take more than a pumped-up Japanese coupe to send the espressos flying in Modena and Sant’Agata. The GT-R may have the power of a supercar, but does it have the soul? To find out, we pitched the Nissan against arguably one of the most desirable supercars in the world – Lamborghini’s Gallardo LP560-4. Like its Japanese rival, the Italian machine is a fourwheel drive rocket capable of crossing continents in a single stride. However, unlike the GT-R, it costs more than the average UK house to buy. Armed with these facts, we hit the road to find out whether the Nissan really can claim to be Japan’s first ever supercar slayer.

Nissan GT-R

or a car that doesn’t officially go on sale in the UK until March, the GT-R has already built up an enviable reputation. Nissan’s hard-working press demonstrator was bought over to the UK a full 10 months ahead of the launch, and since then it has driven off with more silverware than any other Japanese car in history. Suffice to say that no magazine or newspaper has been left un-moved by the charms of Nissan’s remarkable newcomer. Viewed in the metal, the GT-R is an imposing piece of design. The styling clearly borrows elements from previous Skylines – the round tail-lights and muscular rear flanks are the most noticable features to make the transition – but overall the GT-R has a style of its own. While it lacks the purity and delicacy of the Lamborghini, it has serious road presence with exaggerated lines, bulging panels and a solid stance. Climb aboard, though, and the GT-R disappoints. Although the driving position is good – better than the Gallardo if you’re a six-footer – the rest of the cabin feels 20 years out of date. The layout is blocky and unimaginative while the plastics and trim would disppoint in a Micra, let alone a £50k plus sports coupe. Fortunately, any negative feelings towards the GT-R are banished the moment you hit the red starter button and fire the 473bhp V6 engine into life. All GT-Rs are fitted with Nissan’s new semi-automatic transmission – there’s no manual version – so pulling away from rest involves engaging drive on the lever and simply hitting the throttle. However, it’s best to have a very clear road ahead of you as the GT-R rockets towards the horizon at an incredible pace. Even without using the launch control facility, the GT-R hits 60mph in a whisker over 4.0 seconds. Switch it on and that figure drops by around half a second. For a car that weighs 1,740kg, that’s a remarkable feat of engineering. The gearbox is a delight to use – even if you’re a semi-auto sceptic. The way it punches through ratios, balancing revs on the downshifts is as close to perfection as we’ve ever experienced. Although the Lamborghini’s e-gear set-up is impressive, the GT-R’s transmission is slicker and more enjoyable to use. But while the Nissan is blindingly quick in any situation – there’s a lack of subtlety to the chassis balance that some drivers will find hard to live with – especially those considering a trade-down from a traditional supercar. Where the Gallardo feels delicately poised through corners, ready to slice from apex to apex with absolute precision, the GT-R bludgeons its way through bends with unbreakable grip. It’s devastastingly effective, but you can’t help feel that it’s the GT-R’s chips and microprocessors that are doing the driving rather than you. It’s a bit like playing a familiar computer game on Easy level. Sure, you rack up a good score, but where’s the challenge?

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forecourt Lamborghini Gallardo LP560-4 Price: £140,350 Engine: 5.2-litre V10, 552bhp 0-60mph: 3.9 secs Top speed: 202mph Economy: 15.2mpg

Nissan GT-R Price: £58,400 Engine: 3.8-litre V6, 473bhp 0-60mph: 3.9 seconds Top speed: 193mph Economy: 16.0mpg

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forecourt ‘Yes, the GT-R is quick and packed with technology, but so is an Airbus. Wherever we took our test pair, it was the Lamborghini that grabbed all the attention.’

Lamborghini Gallardo

hile Japanese supercars have famously suffered from a lack of charisma in the past, that’s not a criticism you can level at Lamborghini. Even with the calming influence of Audi at the controls, machines like the Gallardo have Italian style oozing from every panel gap. Only now, the passion is matched with decent build quality and superminisimple driveability. Facelifted earlier this year, Lamborghini’s entry level offering is mightier than ever. The front and rear ends now features harder-edged bumpers and air intakes, while the lights have been reworked to give an even sleeker appearance. In the metal, the Gallardo is stunning. With a roofline that comes up to your waist and overhangs kept to an absolute minimum, it’s lack of clutter or unneccesary detail makes the GT-R look bulky and cartoon-like. Slide inside the LP560-4 – easier said than done if you’re near the six feet mark – and you’re instantly cocooned in a leather and Alcantara heaven. In true supercar style, the shallow windows and solid rear bulkhead create a dark, snug driving environment, while the narrow sport seats force you into a laid-back position. But while the materials impress, the Gallardo isn’t perfect. The centre console is packed with Audi switchgear and controls which, although solid and easy to use, are exactly as you would find in a £16,000 A3. Considering that the Lamborghini costs £126,000 more than the entry-level Audi, it’s a shame that no effort has been made to give it a more bespoke look. But while some aspects of the interior design get black marks, it’s hard to find anything negative to say about the way the Gallardo drives. As part of the facelift package, Lamborghini replaced the original 5.0-litre V10 with a new 5.2-litre version which generates 552bhp. It’s a glorious engine and perfectly suited to the Gallardo’s nature. With a gutteral bark at low revs and an utterly unique 10 cylinder howl at speed, it accelerates with ferocity and has a seemingly bottomless pit of torque regardless of what gear you’re in. The heavily revised e-gear transmission is equally impressive. Although the Nissan has the edge when it comes to shift quality, the Gallardo isn’t far behind and flits between ratios with consummate ease. Drivers can choose between three gearbox settings – Normal, Sport and Corsa – with the changes getting sharper and more savage at each level. The Corsa programme also alters the exhaust settings so that the distinctive Lamborghini V10 howl is even more vocal.

Lambo vs GT-R: the big verdict

f speed, performance and value are your overriding concerns then look no further than the Nissan GT-R. On paper, it walks this test. However, factor in the kind of things that supercar buyers look for; desirability, exclusivity and soul, and the verdict is a lot harder to call. Yes, the GT-R is quick and packed with technology, but so is an Airbus. Wherever we took our test pair, it was the Lamborghini that grabbed all the attention. People wanted their pictures taken next to it, others just wanted to touch it. Not one person wanted a snapshot of the GT-R to put on their computer desktop. Now, that may suit some buyers down to the ground, but for our money, a supercar needs to perform on more than one level. And for that reason, cars like the Gallardo will always occupy a special part of our hearts. 1 Lamborghini Gallardo LP560-4 If you want to get noticed, get a Gallardo. The revised LP560-4 model takes everything that was good about the original and makes it better. Aside from the cabin, the Lamborghini is the perfect supercar. 2 Nissan GT-R Astonishingly quick and beautifully engineered, the most high-tech sports coupe in the world. It may not have the wow factor of a traditional supercar, but it beats them against the clock and thumps them all for value.

Like the GT-R, the Gallardo uses a four-wheel system to transfer its power to the road. However, on the road, the two feel completely different. Where you can feel the Nissan actively juggling the torque between front and rear axles, the Gallardo has a more subtle setup, finely dividing out drive to deliver astonishing traction out of corners. It may not have the drama of the GT-R, but it’s every bit as effective and a lot more satisfying. At £140,300, the Gallardo is a pricey machine. Factor in the e-gear transmission and essential options such as the rear-view camera, and the figure is over £150,000. However, for sheer presence and desirability, they don’t come much better than this.

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With Toyota revealing it will make its first loss since 1941, the new iQ city car needs to be good. But is it too expensive? Richard Aucock finds out

ere is Toyota’s Smart-beater – or so the troubled carmaker hopes! The iQ may be tiny, but it has a huge weight on its shoulders. With the Japanese giant recently announcing it will make its first loss since 1941, the iQ needs to be good! Thankfully the iQ packs in a load of technology, big-car crash safety – oh, and the potential to seat four people. Toyota calls it ‘techno organic’ design. We just call it, well, smart. It’s a squat three-door city car, that is, purportedly, the shortest four-seat car you can buy. It’s shorter than the original Mini,

never mind the relatively gargantuan new one. A great deal of clever engineering is behind all this, which leads to some decidedly premium pricing. Forget the Aygo – the iQ is priced alongside the larger Yaris supermini. Toyota dealers will be helped in justification by funky styling and a high-line, quality feel. The iQ simply feels special, with classy trims that set it apart from other cars in this price band. Thin seats and a cutaway dashboard on the passenger side means two 6’3” people can sit one behind the other too. >

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24/11/08

17:19

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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 CarDealerIss11.indd 30

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Toyota iQ Price: £9,295 Engine: 1.0-litre, petrol Power: 67bhp, 90Nm 0-60mph: 14.7s Max: 93mph Ins: Group 2

For such a small car, that’s incredible. Although to do the same on the other side, the driver has to sit with the seat set well forward – therefore, consider it a ‘3+1’. The boot is also microscopic. All you can get in is a laptop bag. And, so close are rear passengers to the back screen, Toyota’s had to design a special rear window airbag, to protect them. This takes the airbag count up, remarkably, to nine. There is a hi-tech heater system, with climate control. Buyers also get a stereo with superb sound; Toyota really is pitching this little car upmarket, with an executive level of equipment, including optional built-in colour-screen sat nav and Bluetooth. A tiny 1.0-litre three-cylinder engine powers it. There will soon be a 1.3-litre, but the brand’s keeping it simple for now. And while it produces only 67bhp, the iQ also weighs only 850kg. This means performance on the motorway is amazingly refined. Noise levels are unbelievably low and 80mph cruises are a breeze. The flipside of that small capacity comes around town. You really have to work the iQ hard, and performance is pedestrian if you don’t.

Fail to work it, and it lacks the expected gusto of a city car. In contrast, all the controls are very light and easy. With its wheel at each corner feel, it’s great for the city – although visibility is restricted by the low windscreen and thick back pillars. It’s also a fair bit lower than the Smart, which means you don’t get as good a view out. A very reassuring attitude through corners again shows how Toyota’s tried to make the iQ feel grown up. It’s very stable, has a comfortable ride and inspires confidence when taking corners quickly. Toyota’s backed this up with ESP stability and traction control. Only its width hinders city progress. It’s almost as broad as a Yaris. It’s super-economical, though – 65.7mpg is the

claimed combined figure and that’s better than an Aygo. Add in 99g/km of CO2 and you’ve got free road tax too – without the fuel cost penalty of a diesel engine. Toyota’s launching it in just three colours, there are two trim lines and both are very well equipped. Plus it’s priced accordingly; £9,295 for the base, £10,275 for the iQ2. The five-speed manual can be supplanted by a £1,000 semiauto, for two-pedal city centre motoring. So, impressive, interesting, but expensive. Will it become a cult car like the Smart? Only time will tell. That’s the challenge for Toyota dealers; but the car itself is fascinating enough to give them a fighting chance… [CD]

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MW certainly sprang this one on us. An all-electric MINI, that’s not only a fullyworking, driveable vehicle – but one which is being pressed into public service as we speak! It was certainly a shock… Trials are underway in America with 500 buyers able to lease a MINI E for £550 a month. They’ll last a year, as BMW investigates the viability of all-electric motoring. That’s something Car Dealer did too, by grabbing an exclusive first-drive of the engine-less motor over in Germany. So what exactly has BMW done? Well it has junked the old 1.6-litre petrol engine and replaced it with a 204bhp electric motor. Powering this are lithium ion batteries, which take up the space where the rear seats normally are. It’s thus a very heavy two-seater; as battery technology improves (and it is, rapidly), the seats will come back and the weight will go down. The experts promised us a 155-mile range, 60mph in 8.5 seconds and a limited top speed of 95mph. Like the Tesla Roadster we drove a few months back, this is produced in a unique way (no coincidence; Tesla’s supplier for the electric bits is also used here). In short, there’s no vibration, no noise (apart from the battery cooling fans); it is literally press and go. The controls are identical to an automatic MINI, so just slot it into ‘D’ and press the throttle. With a real snap, the MINI surges forward. The famed electric car torque means it’s even more throttle-responsive than the turbocharged Cooper S. If it wasn’t for the weight (some 350kg more than standard), it would almost be as fast – that’s how punchy the electric motor is. Seriously, anyone who says electric cars are still

forecourt

BMW’s shock electric MINI took everyone by surprise – including us! Car Dealer tries out the future of motoring decades off needs only to drive this ‘performance’ MINI. The way it delivers power in its city centre heartland is massively compelling. Amusingly, lifting the throttle is as if you’ve pressed the brake pedal. That’s how strong the ‘regeneration’ effect is. It’s useful though – engineers reckon you could extend the range by 20 per cent from regeneration alone. Of course, handling is upset by all that weight. MINI has tried here (the ride is actually a bit better, as it’s more weighed down), but the car still lacks the agility of a lighter petrol model. It’s easy to get the nose pushing wide in corners.

Even so, this is a fascinating car which, as it feels and looks just like a standard MINI, is in many ways ‘production ready’. The range won’t be a problem if you’re sensible (monitor it from a meter where the rev counter normally sits), although recharging it still requires an infrastructure that’s simply not here. It does cost a lot less to ‘fuel’, though. Even with electricity prices the way they are, a MINI E would cost 2p per mile. BMW has recruited special MINI dealers in the US to handle the project. They’ll liaise closely with customers, and service any problems the cars have. But, none are expected – mechanically, these cars are even more straightforward than petrol models. Therefore expect feedback on how dealers will make money from electric cars, too. It seems increasingly certain the car of the future will be electric. And, it looks to us that this future is nothing to be feared. The fun MINI E is something we’d happily drive today. Just imagine what they’ll be like when they do reach production… RICHARD AUCOCK

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blog-off T

he first rule of Car Club… you don’t speak about Car Club. Well, at least not to the wrong type of person. The festive season, although now a long and distant memory, has that annoying habit of forcing you to spend some ‘quality time’ with distant relatives you wouldn’t usually nod to on the street. This leads to some rather uncomfortable situations – and I’m not talking about the itching from Aunt Mable’s jumper (why you’re wearing her jumper is another story entirely). Anyway, the situations I’m talking about are the ‘Car Situations’. They all start harmlessly enough, but so easily take a warped and dark turn that all of a sudden the whole room’s gone silent and you’re being escorted from the premises by Great Uncle Nick (GUN). They normally start a little something like this… ‘So, your mum’s been telling me you’re been writing about/selling/fixing/instructing others to sell cars (delete where applicable),’ slurs drunk distant relative X. ‘Yep,’ you reply, wanting to escape the situation as rapidly as possible. ‘So, (add nasal ’ooooah’ where appropriate) what do you think of my new Skoda Roomster.’ Now this conversation has two very distinct paths. The first is going to involve a bout of MP-in-the-Commons-style head nodding that Churchill the dog would be proud of as you’re forced to concede that the styling of said Skoda is very ‘unique’ (weird) and that he made a wise (ridiculous) and sound (mad) decision to buy it. The second – more commonly picked route by the devout car lover – is to spray a mouth full of eggnog across the room, stagger in disbe-

Ever been ear-bashed by a car nut who’s just found out what you do for a living? So has the editor...

‘All of a sudden the room’s gone silent and you’re being escorted from the premises by Great Uncle Nick (GUN).’ lief that a member of your family, however far removed, could bring themselves to buy such an automobile, and scream at the madman that yes it might drive nicely, and be excellent value, but did he have a blindfold on when he bought it? Obviously, the second option is the one that involves aforementioned GUN and your forehead greeting the gravel path – but it’s so much more satisfying than the first. And that’s just one of the very many pitfalls of admitting you are a fully paid up member of Car Club.

Others involve discussing the merits of a limited slip differential, the MacPherson strut and/or the ‘fantastically interesting’ new Porsche Doppelkupplung (yawn) semi-automatic gearbox with the Car Bore of the Year. Said bore is easily spotted (and thus usually easily avoided) by his penchant for WRC apparel and ‘King’-Lewis-championship-winning-celebration-bald-spot-covering baseball cap. Occasionally, just occasionally, you’ll get to partake in the kind of conversation that all Car Club members have spent hours rehearsing – the What Would You Buy for… (insert £X,000s here) classic poser. If you’ve played the game before, you’ll know that the lower the figure the harder it gets. Car Club membership ranking can easily be determined by how cool the automobile is picked by participants and their reasons why. However, the truth of the matter is, for every minute spent recounting those classic Auto Trader searches for your £3,000 budget, you’ll have to endure hours spent locked in ‘conversation’ with the Bore of Yaw Control or that family member who picked the wrong car. Which is why, like I said at the start, you need to remember the first rule of Car Club – you don’t speak about Car Club! JAMES BAGGOTT This article was taken from our blog. Read more rants at CarDealerMag.co.uk now

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FERRARI 599 GTB FIORANO

ow could you fail to be seduced by Ferrari’s most powerful road car? Driven by, of course, a howling V12 engine? Sadly, if EU legislators have their way, the V12’s days are numbered – which could well make the 599 GTB Fiorano the last of a great line. With a 6.0-litre V12 hurtling 612bhp to the rear wheels, short of grunt it is not. 0-60mph takes 3.7 seconds – and this is a big, 1,700kg car, remember – plus it will go on to top 200mph. It really is unbelievably fast. Where did Ferrari find this magnificent engine? Why, in the back of an Enzo. Here, barely modified, it’s dropped into the front of the 599. Purists will take the six-speed manual, with its classic exposed chrome gate. This will allow them to mimic the cad in a 1960s action flick. Most, however, prefer to copy Massa and Raikkonen, by going for the paddle-shift F1 ‘box. Either is mated to Ferrari’s blinding traction control system, called F1-Trac. No less than Michael Schumacher himself tuned this. How good is it? Well, it allows a half-decent driver to lap within a second of the meister himself. And when we say lap, we mean lap Ferrari’s Fiorano test circuit. Hence

the name of the car. The GTB bit refers to Grand Tourer Berlinetta. Yes, this is a luxury GT cruiser, with long legs and high miles as its forte. Special suspension has trick dampers, which help supply a ride supple beyond its means. If you can afford the monstrous fuel bills (14mpg, anyone?), this really is a delectable high-speed tourer. But Ferraris are Ferraris. And thus, most often seen on race tracks. Here’s the genius of the 599 – for, while it’s huge and heavy, it’s also unbelievably lithe through the bends. It boasts exceptional handling for one so mammoth, with turn-in, sensitivity and balance to die for. You master it all from a cockpit that you could live in. Few countries do leather as well as the Italians; few carmakers have nailed it like Ferrari. It’s everywhere, and altogether decadent no matter what colour you choose. And while there are electronic displays to monitor the health of the big V12, there are also enough chrome-ringed analogue dials to take you right back in time. Speaking of going back in time, it’s worth pointing out that this car is probably as good

as it is because its predecessor was such a disappointment. After the similarly sublime 550 (famously piloted by Martin Brundle on ITV F1), the 575M replacement was a bit of a dog’s dinner. We Press didn’t hesitate to ask what on earth was going on. Clearly, the same thing happened back at Ferrari. Cue one multiple World Champion, putting in the hours around the test track with the engineers… well, if you’ve got him on your payroll, why not? In short, the 599 GTB is a supercar you’ll never tire of. Technically, it’s not billed as a supercar, of course. But just you try to deny the magnificent Ferrari isn’t the equal of, say, a McLaren F1. The company truly did achieve miracles when it brought this to market in 2006. Question is, how long can it remain? RICHARD AUCOCK

Ferrari 599

Price: £223,255 Engine: 6.0-litre, V12 Power: 612bhp, 608Nm 0-60mph: 3.7s Max: 2055mph Now finance one with Bridford: Option One: £50,000 deposit, 24 x £975 plus final payment* Option Two: £20,000 deposit, 48 x £2,285 plus final payment*

*The above options are specifically for applicants who do more than 2/3rds business mileage, limited companies or high net worth individuals. Contact Bridford for a written quotation and full terms and conditions.

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sales legends

ut with the old, and in with the shock of the new. Company car drivers were brought straight into the 80s with a slap in the face back in 1982, when Ford launched its most controversial car ever. Replacing that old favourite, the Cortina, the Sierra was as radical as a pound coming in coin form. And proved just as shocking. The three-box Cortina was not radical. Not likely to upset suburban sensibilities. It sold in droves and was driven en masse by every company car driver in the country (well, almost). Replacing it was always likely to prove difficult – which is why Ford procrastinated for so long. How, though, they got to something this outlandish is anyone’s guess. The company is famously in tune with the market – never more so than throughout the 70s, where it virtually defined for car dealers how models should be marketed and sold. Ford, remember, invented the model hierarchy, invented the idea of posh Fiestas overlapping base Escorts, and so on. It was super-sensible, and did for Ford’s rivals such as BL and Rootes Group. But the famed extensive market research saw something emerge during the design of the Sierra. Customers wanted something more radical than the boring old Cortina. It had been around

for too long, was looking off the pace. Vauxhall was coming with the bold-sounding Cavalier MkII. Something had to be done. With incredible foresight, Ford predicted aerodynamics and fuel efficiency would be vital in the 80s. It thus unveiled the stunning Probe III concept car, with flush-fitting side glass and a low drag factor. Everyone was amazed. Then… it chickened out, toned it down, and launched it as the Sierra. Even worse, Ford planners made a rare faux pas. They predicted the market was not ready for front-wheel drive, so launched the new car as a rear-driver. Yet gave it a hatchback, in a market that was totally wedded to the saloon. It was thus neither one thing nor another. Amazingly, Vauxhall took the opportunity to show how things should be done. With the Cavalier MkII, buyers had a front-drive model, with sober and sensible styling, offered as a hatch or… a saloon. The engines were modern, rather than the Sierra’s Cortina-derived units, yet Vauxhall also copied the Sierra’s sensible model hierarchy. That’s why the Sierra struggled. Legend? Not quite. Of course, Ford did not remain unbowed. Things turned around. Buyers got used to the style. Ford sold it heavily to fleet managers, who noticed how cheap to run and reliable it was. The

Cavalier could shift 9,000 units a month, but Ford dealers usually beat them with 10,000 or more. Then, in 1987, it bowed to the market, and released a saloon version – the Sapphire. A quarter of a billion pounds was spent on the new variant, and a minor facelift elsewhere. Specs were honed, a market-friendly 1.8 LX variant introduced, and suddenly there was no stopping the Sierra. Throw in a halo effect from the mighty Sierra Cosworth, and things were looking up. By the time of the Mondeo in 1993, millions of the things had made Britain’s roads. It was never quite loved, but admired by many, and a staple of the company car fleet nationwide. Ford, a decade late, righted its engineering wrongs with the front-drive, soberly styled Mondeo, and started a new chapter in its current glittering history. But the Sierra still has a place in history. If only for throwing away the shackles of the staid old Cortina…

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Ford Launch far for ed with lofty set the the UK’s Cort ambitions, th in templa te for th a-loving pub e Sierra prove li d the gre e modern fam c. However, it a step too s atest fa st Ford ily car – and g brave looks s of all time... ave us one of

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rewards

Loyal ? Family The

Reward cards are no longer the preserve of the high street. Car Dealer meets the man introducing the UK’s first-ever automotive loyalty scheme. Richard Aucock reports

ands up anyone who makes a diversion on the way home, to use a BP fuel station instead of any other. Or who is wedded to Tesco rather than its rivals. Well you can join more than 85 per cent of the UK population then. That’s the power of loyalty cards. Your writer here is a Nectar obsessive. Joining millions of people across the country. But how do you take advantage of this super-power magnet in your own business? Get on to Paul Cleverly of

Complete Automotive Solutions, that’s how. He’s just launched Bluerewards. This is a loyalty reward scheme that card-carrying customers can use to get money off new cars. It’s unlike any other dealer reward scheme thus far – and offers benefits on an unprecedented scale. Cleverly told us the background. ‘With CloseIt,

we are able to measure customer retention. Generally, it is around 20-30 per cent. There are therefore millions of customers out there who are changing brand – and thus, changing dealership – when they buy a new car. This started to interest us… ‘We found that, when people change car, they >

‘Bluerewards works exclusively with a jaw-dropping array of retailers. These include Currys and Dixons, PC World, Vodafone, Play.com and BHS.’

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rewards Rewarding times

Some of the big names taking part in the Bluerewards scheme

tend to stay within the same car segment. They just, well, fancy a change. So, if you’re a multi-brand group, you probably have a product there that interests them. But are customers aware of this? ‘Increasingly too, carmakers are pushing dealers by town, such as Bristol Ford, rather than by group. Customers probably won’t even be aware you’re part of a multi-franchise group! ‘In short, you need some way of bringing them back at vehicle change time, to ensure the first conversation they have is with you. And you need a way of ensuring that prospect is an incredibly good one. ‘To be blunt, you need a bribe, to ensure they don’t go anywhere else…’ This led Cleverly to look at the various reward products on the market. The problem with all of them, he said, was that they cost the dealer money. A non-starter in the current climate. They were also reliant on just a few customer money-saving opportunities within the ownership of the vehicle – such as 10 per cent off servicing. ‘They just didn’t offer enough opportunities to enhance the relationship,’ added Cleverly.

‘Cleverly’s team offer daily deals, too. These feature one-offs – short-term bargains to make people visit every day. This means, of course, they’ll see your dealer branding all the more often.’

A year ago, Cleverly made a pivotal trip to the US. There, he discovered Automiles – a loyalty scheme for dealers. ‘It was an online reward scheme, to which various retailers were signed up,’ he explained. ‘Spend money with them, and customers earned points.’ And points mean the prize of cash off cars… Fast-forward a year, and Cleverly is about to launch a similarly groundbreaking product in the UK: Bluerewards. The premise is simple – and quite stunning. Bluerewards works exclusively with a jawdropping array of retailers. These include Currys and Dixons, PC World, Vodafone, Play.com and BHS. Customers earn money thus: they buy, say, a mobile phone from Vodafone. Ordinarily, the retailer of the phone would be paid a commission, but here that goes to the customer’s Bluerewards account instead. This commission accrues, to fund a new car. Genius? And then some… It is all managed through a bespoke Bluerewards web portal. This ensures that every time a customer buys online from a listed partner, they’ll earn money to buy a new car. There’s more. ‘This portal is branded to the

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dealer’s own look. In essence, it is the dealer’s own shop, in which the buying customer is rewarded with money off a new car from them.’ A dealer shop that sells all sorts, from Vodafone mobiles to the new X Factor DVD. Some users will buy online literally hundreds of times a year – and, every time they do so, they will see the dealer’s branding. That’s not all. Cleverly’s team offer daily deals, too. These feature ‘one-offs’ – short-term bargains and other incentives to make people visit every day. This means, of course, they’ll see your dealer branding all the more often. If Dixons have 400 of last year’s LCD TV model to shift fast, this is where they’ll appear. At a price that’s more of a steal. ‘It’s your dealership helping people to save money,’ enthused Cleverly. ‘This is great for brand recognition and loyalty.’ Other benefits include the reduction of list price discounts needed to be competitive. Right away, you’re giving customers the hundreds of pounds they’ve accrued off a car. There’s also additional aftersales business, and a commitment from long-term owners to use you

for servicing. The e-mail distribution system is equally powerful. Signing up is easy. Dealers have to take out a two-year contract, and need to buy two sets of a welcome pack in this time. That includes special customer loyalty cards, in 500, 1,000 or 2,000strong bundles. The card is fully branded with the dealer’s logos, by Cleverly’s design team – and is packed in a welcome booklet, again in dealership branding. His design team also produce your own Bluerewards web page. Costing £500, this is the bit that customers will see day-to-day, and which you will pay £100 a month to keep up and running. Other than that and the two card pack bundles (which start at £1,000), it won’t cost you a penny. ‘The amazing thing is, if the customer doesn’t come back to the dealer to buy the next car, the cost to the dealer is minimal,’ adds Cleverly. ‘In these difficult times, loyalty is king. This is going to revolutionise the way in which dealers work, in order to keep customers buying cars from

them again and again.’ He has evidence of results, too. Cleverly sent out a survey to more than 16,000 people. Without any sort of buying incentive, the results showed that 20 per cent loyalty rate we mentioned at the start. But what about with a rewards scheme? ‘57 per cent would talk to the dealer if they accrued a credit of just £200. Increase that to £400, and the prospect rate jumped to 78 per cent. Using the standard 25 per cent conversion rule for customers who have bought from you before, that’s a minimum of 38 or a likely 91 additional sales.’ Pretty compelling stuff, you have to agree. ‘Repeat customers are your best customers, period!’ summarises Cleverly. ‘Extremely low cost per sale and with very high profitability, this is the only gold mine you need to worry about…’ [CD]

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Don’t look back with

AA Warranty What makes AA Warranty special? “We’re not just a warranty company, we provide real opportunities for sales and revenue, and here are just a few reasons why…” Paul Hanna, Commercial Manager A recent survey reported that 93 per cent of independent dealers questioned said the AA Warranty brand was important or very important to their business – the AA brand was recently voted Number 15 in Britain’s Top 500 brands.* You benefit from real increases in new prospects, prospect conversion and incremental Finance & Insurance revenue. As retail partners you have access to carefully designed marketing and point of sale material that accesses consumer confidence and loyalty to the brand. We provide our dedicated retail partners with knowledge, systems and skills to generate profit from our products, we consider ourselves as consultants and providers of training and products that the market needs. We have a dedicated marketing, database and telemarketing team whose purpose is to maximise incremental income from your databases, through mailings, websites, telesales, SMS and e-mail campaigns. We also provide Cross-sell and Up-sell programmes to ensure your staff remain focused at the point of sale.

As an AA Warranty dealer, you will add value to your deals through our comprehensive range of mechanical breakdown and GAP Insurance products, that could make a real difference to your dealership’s F&I sales.

We can provide you with carefully prepared leads, as well as additional risk and lifestyle profile information enabling specific targeting of new prospective customers from our data pool of 13.5m transactional records. We can also provide the data, make the call and even sell product on the dealer’s behalf. We currently have more than 40 regional development managers and more than 100 support staff, AA Warranty are the leaders in the automotive broking industry. We have some 400,000 live policies through more than 1,200 dealerships. We only have UK-based customer support centres. We manage 5,000 calls per week: our philosophy is to find solutions and to pay claims, not avoid them. We can provide a car buyer with a national managed repair network of more than 1,000 repair workshops – these give AA Warranty customers priority booking, courtesy cars and discounted rates for non-warranty repairs.

Find out more about becoming an AA Warranty dealer today. Call Paul Hanna on 0114 263 7769 or visit www.aawarranty.co.uk/dealers for more information *Superbrands 2008/2009 The Sunday Telegraph September 2008. AA Warranty is a trademark of The Automobile Association Limited and is used with their permission under licence to Motorway Direct Plc. AA Warranty is provided by AA Mechanical Insurance Services Limited, an appointed representative of Motorway Direct Plc who are authorised and regulated by the Financial Services Authority, authorisation number 311741. AA Mechanical Insurance Services Limited, 1 Waterside Court, Bold Street, Sheffield, S9 2LR. Registered in England & Wales No. 5987949. Group VAT registration: 804 0501 84.

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warranties

Cover Up

Warranty sales are on the rise – and it’s all thanks to the credit crunch! Consumers want to protect their cars from heading to the great scrapheap in the sky while dealers are keen to make the most out of every sale. Here, Richard Aucock reports on two providers looking to cater for the discerning automotive retailer...

ar buyers want security in hard times. In a credit crunch, unexpected bills are the last thing anyone needs. And any way of protecting monthly outgoings, should the worst happen, are key. That’s why warranties are now so important – and such a key revenue stream for dealers. Buyers are especially receptive at the moment, as warranties are insurance against the unforeseen. Not only are they experiencing plenty that wasn’t predicted, there’s also the threat of future economic

dramas making them hold off big financial commitments. A warranty can help allay some of those fears. Particularly as today’s F&I products don’t just cover breakdowns. They can encompass loan shortfalls, tyres, lost keys, MOT failure, even the difference between a buyer’s outstanding loan and the price an insurance company will pay out, should the vehicle be written off. They can virtually remove the financial risk of buying a new car. Just the thing to get a cautious public buying again.

As for conventional breakdown warranties, they too are taking on heightened importance. Why are people buying new cars today? Probably not to look good, but for reliability, peace of mind – and to finally escape from a rough old banger. More of a necessity than a vanity purchase. A decent warranty will only enhance this proposition. Don’t just take our word for it though. Two of the major warranty providers in the UK both report booming sales. Here, we find out what they can do for you. >

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warranties

RAC Warranty

Tel: 0844 871 8228 Web: racbusiness.co.uk/warranties Company name: RAC Warranty Contact for dealers: 0844 871 8220, racbusiness.co.uk/warranties Products offered: For FSA-compliant dealers, RAC Warranty offers an extensive range of products. These include parts and labour cover at silver, gold and platinum levels, GAP loan shortfall insurance, GAP return to invoice insurance, tyre insurance, MOT failure insurance and lost keys insurance. Often, there is no exclusion to the age or mileage of the vehicle, so long as it meets minimum customer purchase price requirements. For non FSA compliant dealers, the company offers RAC Service and Maintenance. This, the firm says, has been developed to allow a ‘large number of dealers to add significant benefits to their ongoing customer relationships’.

Warranty entered the market in 2008, as a new player in a competitive marketplace. It enhances the reassurance of the RAC brand name with a product supplied by The Warranty Company – an operation with outlets in the USA,

‘Safety net products such as ours always work well in recessions.’

Commission structure: A bespoke arrangement is made with every dealer. What makes RAC Warranty special? RAC

Asia, Australasia and 10 European countries. It has been offering products to the UK motor industry since 1964, so has a wealth of experience in the marketplace to call upon. ‘Safety net products such as ours always work well in recessions,’ says sales and marketing director Ian Simpson. ‘Our gold cover is virtually as good as a maker’s warranty, which is a real draw in tough times.’ ‘There is definite trust in the RAC brand. Customers take confidence from it, and the dealer can use this to their advantage. We know that dealers with the RAC Warranty brand see an improvement in sell-up penetration.’ This point is an interesting one, now that aftersales are becoming an increasingly important part of the business. ‘Most warranty claims are made in the first three months of taking out a warranty,’ says Simpson. ‘The majority of that work goes back to the supplying dealer, giving an additional stream of income.’

Do you want to bring maintenance and repair peace of mind to your used car customers? RAC Warranty to the rescue Bring the reassurance of the RAC brand to your customers with our Maintenance and Repair Contract. This new, innovative product will help deliver sales at prices that you might find surprising. Available to all dealers, you don’t even have to be an FSA registered dealer. Maintenance and Repair Contracts give you and your customers:

We’ll provide support to you with a superb range of RAC branded point of sale material alongside a quick and easy registration and repair process.

So why not let RAC Warranty deliver the right results for you and your customers?

Peace of mind that their vehicle has been fully checked by the dealer Comfort in the event of maintenance or repair being required The ability to deliver sales results

Find out more by calling 0844 871 8220 RAC Warranty is a trademark of RAC Motoring Services and is used with their permission under license by The Warranty Group. The Maintenance and Repair Contract is provided by The Warranty Group Services Limited, Integra House, Vicarage Road, Egham, Surrey TW20 9JZ. Registered Number 094279C.

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AA Warranty

Tel: 0845 474 7407 Web: aawarranty.co.uk/dealers ‘We are one of the strongest brands in Britain: AA was recently voted number 15 in a Sunday Telegraph survey of Britain’s top 500 brands,’ said commercial manager Paul Hanna.

Company name: AA Warranty Contact for dealers: 0845 474 7407, aawarranty.co.uk/dealers Products offered: AA Warranty products are all-encompassing. They include traditional extended warranties, payment protection insurance, plus coverage against lost keys, MOT failure, punctures, even dents and alloy wheel damage. The brand also offers a wide range of GAP protection. These include return to invoice, finance, negative equity and agreed value.

‘We manage 5,000 calls per week: Our philosophy is to find ways to pay claims, not avoid them.’

Commission structure: These vary with product groups and distribution models. They range from net rates to monthly portfolio payments. What makes AA Warranty special? AA Warranty was formed from Motorway Direct, which opened for business more than a decade ago. It has a turnover of £35m and more than 400,000 policyholders.

‘For dealers, we give carefully designed marketing and point-of-sale material to access customer’s confidence and loyalty. ‘They benefit from real increases in new prospects, prospect conversion and incremental finance and insurance revenue. ‘A recent survey reported that 93 per cent of independent dealers questioned said the AA Warranty brand was important or very important to their business. ‘With more than 40 sales representatives and more than 100 support staff, AA Warranty are the leaders in the automotive broking industry. We have some 400,000 live policies through more than 1,200 dealerships. ‘What’s more, we only have UK-based customer support centres. We manage 5,000 calls per week: our philosophy is to find ways to pay claims, not avoid them. ‘We can provide a car buyer with a national managed repair network of more than 1,000 repair workshops – these give AA Warranty customers priority booking, courtesy cars and discounted rates for non-warranty repairs.’

HOw TO BEAT THE RECESSION?

AUTOMATE If you would like to find out how automation of your sales, administration, finance and customer contact processes can cut your labour costs and enhance your sales potential then call us.

CALL – (020) 7538 6651 VISIT – WWW.QBITSA.COM CarDealerMag.co.uk | 47 CarDealerIss11.indd 47

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cultclick cars right

...in association with G-Forces

Tapping up the facebookers Facebook, MySpace, Bebo – it might sound like gibberish, but these websites could be the next big thing in terms of promotion for forward-thinking dealers...

o Christmas is a time for family and friends, for socialising, and spending time with those closest to you not only face-toface, but online as well. Facebook recorded its busiest ever period, clocking up a massive 4.65% of all internet traffic in the UK on Christmas Day. It also seems a lot of people were opening their shiny new iPhones on Christmas morning as traffic to Google surpassed incoming traffic from any other mobile device – amazing considering Apple own around just two per cent of the mobile internet market. The humbug view is that all this technology is leading to our lives becoming increasingly virtual and that we are losing touch with reality as we get drawn further into the cyberworld. Well, not according to a recent study conducted by TNS, a global marketing group. They questioned 27,522 people between the ages of 18-55 about their web use and the faith they held in traditional versus online media. Far from being a barrier to socialising, an incredible 58 per cent of UK respondents had actually met online friends face-to-face. Arno Hummerston, MD of TNS, said: ‘What comes out in this survey is that we are actively engaging with people online, but we haven’t lost the knack for conventional social contact.’ And he claims: ‘Online acquaintances are now perceived by most of us as real acquaintances.’ This is important to the internet-savvy main dealer because it is yet further evidence of the intertwining of our lives and the internet. We trust our friends and we trust the internet so it is important to maintain a highly respectable and professional web reputation. Social media optimisation is becoming increasingly popular for manufacturers, and now main dealers, as it can provide a direct window

‘Facebook recorded its busiest ever period, clocking up nearly five per cent of all internet traffic in the UK, on Christmas Day.’ into the online conversation around their product. The market is getting smarter and growing increasingly informed. Businesses can build up a strong online brand identity and reputation by participating in networking and conversations regarding their products and services. It is this blurring of barriers and the convergence of media that is becoming increasingly important to business nowadays. It is impossible to imagine a successful main dealer without a website, just as it is a bank without an ATM. Just as having a website without SEO is akin to a billboard in the middle of nowhere, a main dealer

website without social media optimisation is akin to a dealership without any staff. If there’s noone for the customers to talk to from the dealer side then the customer will get their information from other sources – the social sites and their contacts there. As communication methods evolve, dealers need to ensure their methods of communicating with customers evolve accordingly. Embracing social media and its communication opportunities allows dealers to immerse their customers in the brand even when they’re not in the digital dealership. Customers can visit the dealer website, talk one-to-one with representatives, find dealers via social bookmarks and put a human face and ‘voice’ to the brand, allowing manufacturers and main dealers to not only hear the online conversation, but to become part of it and a trusted member of the community.

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YourCarLoan

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

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cult cars servicing

in association with the Motor Industry Code of Practice

Servicing feels the crunch Cracking the Code Chris Mason, Motor Codes director, on why scheme’s vital...

Service and repair outlets could fall by as many as a fifth as the recession bites, reveals an industry report

ranchised workshops face a bleak five years because of the credit crunch, claims a new report. The headline figure is that numbers of service and repair outlets could fall by almost a fifth. Some £400m of revenue will be lost from the market – which equates to five per cent of service and repair business. And the effects of the downturn will be felt for many years. The Castrol Professional Car Service & Repair Trend Tracker 2008 reveals workshops reliant on cars within the manufacturer warranty period are particularly susceptible to the downturn as consumers tighten their belts. Service of cars within the makers’ warranty period will experience the biggest downturn. The main reason for this is the fact that the new car market is falling – meaning there are likely to be far fewer vehicles coming through the system. ‘The recession will see motorists seeking value for money to service and maintain their cars, meaning non-franchised garage chains and autocentres are among those most likely to benefit,’ said analyst Chris Oakham The decline in numbers is already underway, he says. There are 17 per cent fewer service and repair centres than there were in 2003. Alarmingly, he says this will fall by a further 19 per cent come 2013. Most will be independents but the franchised sector will account for 15 per cent of the decline in numbers. However, there will also be gains, says Oakham.

T ‘The recession will see motorists seeking real value for money to service and maintain their vehicles.’ Today’s small manufacturer-authorised repair sector will benefit – and sites could increase by a third over the next five years. Several makers, including Bentley, have already told Car Dealer this is a model they intend to follow, which is encouraging. But dealers will still have to change. ‘They will have to adopt a new way of competing with the independent and fast-fit centres,’ concluded Oakham. Measures must include menu pricing, different tariffs for different makers and ages of car – or even offering lower cost non-OE replacement parts.

o me it appears second nature now, but development of the Motor Industry Code of Practice for Service and Repair has been three years hard work, discussion, negotiation and drafting. But why are we doing it and why is it such an important development? Although most of you run good honest businesses, there remains a perception that garages do not deliver a fair and open service. It is up to us, as a responsible sector, to demonstrate this is not a representative view – but we must act now. Quite simply, this is the last chance the industry has to regulate itself and should this initiative not gain sufficient subscribers to become an effective influence on the sector and its customers, then government will legislate for these changes. This means you have the opportunity now to take control and prove to all, that as individual businesses you are prepared to demonstrate that you run a responsible operation – and that you are prepared to be accountable and transparent in providing consistent customer service. My message is quite straight-forward: If you are a garage operator/owner you cannot avoid giving the Code serious consideration and sign up to it. It is low cost to subscribe to and the website is designed to drive customers to the workshops of honest, reliable and customer-focussed businesses. With the help of Car Dealer Magazine, over the next few months I hope to be able to show you the real-life benefits you and your customers can gain from being part of this important scheme. For more information see motorindustrycodes.co.uk

Clever Datapen gadget helps dealers up-sell in tough times DEALERS have benefited from £7.5m of work so far this year using FGA Computer Systems’ Dealer Datapen. The Datapen, launched in mid-2007, is designed to drive additional repair revenue and is now in use by 50 dealers from 14 different franchises. Users include Audi, BMW, Chrysler, Ford, Mazda, Nissan, Peugeot, Renault, Skoda, Suzuki, Vauxhall, Volkswagen and Volvo. It allows staff quickly and easily to complete a point-by-point checklist on digital paper for

every vehicle that passes through a dealer’s workshop, identifying additional work that can be up-sold to the customer. These items can range from simple worn tyres to major mechanical issues. ‘The Datapen is proving to be a prime tool for dealers in fighting the credit crunch by helping them to increase their yield from existing customers,’ explained FGA managing director Tim McGing. ‘Dealers who have been using the pen for a little while have been actually increasing their up-sell rate.’

Good for customers, good for our industry, good for your business.

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Find out more about the new Service and Repair Code at motorindustrycodes.co.uk

19/12/08 16:58:00 CarDealerMag.co.uk | 51

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dot com

...in association with Really Good Domains

Could this be a ray of light? Always look on the bright side of life, says Really Good Domains as the firm reports on a survey that’s not all doom and gloom

hat does 2009 hold? Several conflicting reports about the state of the economy have been released. Perhaps unsurprisingly, the mainstream media has decided to focus on the negative – after all bad news usually sells more papers. However, one survey released at the end of December, actually offered a ray of light in the current gloom. Only a few outlets reported on the latest Business MindReader Survey, from media agency Mindshare, which contacted 5,500 business leaders in 11 countries (including the UK and US) about their opinions on the year ahead – the results were pretty spectacular. Some 96 per cent of respondents stated they were optimistic and not sceptical about the future faced by their business and half of respondents consider finding and keeping talent a priority in their business; however 73 per cent admitted a key concern was economic uncertainty. So what does this tell us? Well, this shows that in key countries around the world, the business community, while troubled by the current recession, is optimistic that their businesses will survive the downturn and come out the other end. And while UK unemployment figures are set to worsen during 2009, it is worth remembering that the vast majority of working age Where Really Good Domains can help is in people will remain in work. getting your company and deals noticed by a It’s true these are challenging trading condiand targeted online audience, providing tions for the UK automotive industry. S large online advertising that works whatever Dealerships need to concentrate P sector of the industry you operate in. on their strengths, analyse what Contract Hire and Leasing, new and sells and what doesn’t, where nearly cars, light commercial vehicles, to advertise and where not to vans, fleet, car supermarkets, and autoadvertise, and look for companies motive auction houses are some of the with a proven record of success sectors covered by the Really Good Domains to develop relationships with while portfolio of websites. also using the downturn to iron out any ContractHireAndLeasing.com, SaveMoneyOn weaknesses in the business.

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ContractHireAndLeasing.com SaveMoneyOnCars.co.uk CarSupermarkets.co.uk TheVanWebsite.co.uk CarAndVanAuctions.co.uk TheGreenCarWebsite.co.uk RoadTestReports.co.uk CarLeasingCompanies.co.uk FleetDir uk Cabrioletcar.co.uk ContractHireAndLeasing.com CarSupermarkets.co.uk TheGreenCarWebsite.co.uk VanLeasingSpecialOffers.co.uk SaveMoneyOnCars.co.uk RoadTestReports.co.uk TheVanWebsite.co.uk ContractHi fers.co.uk FleetDirectory.co.uk ContractHireAndLeasing.com SaveMoneyOnCars.co.uk CarSupermarkets.co.uk TheVanWebsite.co.uk CarAndVanAuctions.co.uk TheGreenCarWebsite.co.uk RoadTestReports.co.uk CarLeas CarLeasingSpecialOffers.co.uk Cabrioletcar.co.uk ContractHireAndLeasing.com CarSupermarkets.co.uk TheGreenCarWebsite.co.uk VanLeasingSpecialOffers.co.uk SaveMoneyOnCars.co.uk RoadTestReports.co.uk TheVa com CarLeasingSpecialOffers.co.uk FleetDirectory.co.uk TheGreenCarWebsite.co.uk Cabrioletcar.co.uk VanLeasingSpecialOffers.co.uk TheVanWebsite.co.uk CarSupermarkets.co.uk ContractHireAndLeasing.com SaveMo TheVanWebsite.co.uk CarAndVanAuctions.co.uk TheGreenCarWebsite.co.uk RoadTestReports.co.uk CarLeasingCompanies.co.uk FleetDirectory.co.uk CarLeasingSpecialOffers.co.uk Cabrioletcar.co.uk ContractHireAndL GreenCarWebsite.co.uk VanLeasingSpecialOffers.co.uk SaveMoneyOnCars.co.uk RoadTestReports.co.uk TheVanWebsite.co.uk ContractHireAndLeasing.com CarLeasingSpecialOffers.co.uk FleetDirectory.co.uk ContractH co.uk CarSupermarkets.co.uk TheVanWebsite.co.uk CarAndVanAuctions.co.uk TheGreenCarWebsite.co.uk RoadTestReports.co.uk CarLeasingCompanies.co.uk FleetDirectory.co.uk CarLeasingSpecialOffers.co.uk SaveMo tractHireAndLeasing.com CarSupermarkets.co.uk TheGreenCarWebsite.co.uk VanLeasingSpecialOffers.co.uk SaveMoneyOnCars.co.uk RoadTestReports.co.uk TheVanWebsite.co.uk ContractHireAndLeasing.com CarL co.uk TheGreenCarWebsite.co.uk Cabrioletcar.co.uk VanLeasingSpecialOffers.co.uk TheVanWebsite.co.uk CarSupermarkets.co.uk CarLeasingSpecialOffers.co.uk ContractHireAndLeasing.com SaveMoneyOnCars.co.uk co.uk CarAndVanAuctions.co.uk TheGreenCarWebsite.co.uk RoadTestReports.co.uk CarLeasingCompanies.co.uk FleetDirectory.co.uk CarLeasingSpecialOffers.co.uk Cabrioletcar.co.uk ContractHireAndLeasing.com CarS co.uk VanLeasingSpecialOffers.co.uk SaveMoneyOnCars.co.uk RoadTestReports.co.uk TheVanWebsite.co.uk ContractHireAndLeasing.com CarLeasingSpecialOffers.co.uk FleetDirectory.co.uk ContractHireAndLeasing.com kets.co.uk TheVanWebsite.co.uk CarAndVanAuctions.co.uk TheGreenCarWebsite.co.uk RoadTestReports.co.uk CarLeasingCompanies.co.uk FleetDirectory.co.uk CarLeasingSpecialOffers.co.uk Cabrioletcar.co.uk Contrac co.uk TheGreenCarWebsite.co.uk VanLeasingSpecialOffers.co.uk SaveMoneyOnCars.co.uk RoadTestReports.co.uk TheVanWebsite.co.uk ContractHireAndLeasing.com CarLeasingSpecialOffers.co.uk FleetDirectory.co.uk co.uk VanLeasingSpecialOffers.co.uk TheVanWebsite.co.uk CarSupermarkets.co.uk ContractHireAndLeasing.com SaveMoneyOnCars.co.uk CarSupermarkets.co.uk TheVanWebsite.co.uk CarAndVanAuctions.co.uk TheG co.uk CarLeasingCompanies.co.uk FleetDirectory.co.uk CarLeasingSpecialOffers.co.uk Cabrioletcar.co.uk ContractHireAndLeasing.com CarSupermarkets.co.uk TheGreenCarWebsite.co.uk VanLeasingSpecialOffers TestReports.co.uk TheVanWebsite.co.uk ContractHireAndLeasing.com CarLeasingSpecialOffers.co.uk FleetDirectory.co.uk ContractHireAndLeasing.com SaveMoneyOnCars.co.uk CarSupermarkets.co.uk TheVanWebs GreenCarWebsite.co.uk RoadTestReports.co.uk CarLeasingCompanies.co.uk FleetDirectory.co.uk CarLeasingSpecialOffers.co.uk Cabrioletcar.co.uk ContractHireAndLeasing.com CarSupermarkets.co.uk TheGreenCarWeb SaveMoneyOnCars.co.uk RoadTestReports.co.uk TheVanWebsite.co.uk ContractHireAndLeasing.com CarLeasingSpecialOffers.co.uk FleetDirectory.co.uk TheGreenCarWebsite.co.uk Cabrioletcar.co.uk VanLeasingSpeci Supermarkets.co.uk CarLeasingSpecialOffers.co.uk ContractHireAndLeasing.com CarSupermarkets.co.uk TheGreenCarWebsite.co.uk VanLeasingSpecialOffers.co.uk SaveMoneyOnCars.co.uk RoadTestReports.co.uk The ing.com CarLeasingSpecialOffers.co.uk FleetDirectory.co.uk TheGreenCarWebsite.co.uk Cabrioletcar.co.uk VanLeasingSpecialOffers.co.uk TheVanWebsite.co.uk CarSupermarkets.co.uk ContractHireAndLeasing.com Sav reallygooddomains co.uk TheVanWebsite.co.uk CarAndVanAuctions.co.uk TheGreenCarWebsite.co.uk RoadTestReports.co.uk CarLeasingCompanies.co.uk FleetDirectory.co.uk CarLeasingSpecialOffers.co.uk Cabrioletcar.co.uk ContractHire sales@reallygooddomains.com www.reallygooddomains.com “Number 1 in Marketing for Motoring...”FleetDirectory.co.uk Cont TheGreenCarWebsite.co.uk VanLeasingSpecialOffers.co.uk SaveMoneyOnCars.co.uk RoadTestReports.co.uk TheVanWebsite.co.uk ContractHireAndLeasing.com CarLeasingSpecialOffers.co.uk Cars.co.uk CarSupermarkets.co.uk TheVanWebsite.co.uk CarAndVanAuctions.co.uk TheGreenCarWebsite.co.uk RoadTestReports.co.uk CarLeasingCompanies.co.uk FleetDirectory.co.uk CarLeasingSpecialOffers.co.uk

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ing.com CarSupermarkets.co.uk TheGreenCarWebsite.co.uk VanLeasingSpecialOffers.co.uk SaveMoneyOnCars.co.uk R 52 | CarDealerMag.co.uk TheVanWebsite.co.uk ContractHireAndLeasing.com CarLeasingSpecialOffers.co.uk FleetDirectory.co.uk TheGreenCarW car.co.uk VanLeasingSpecialOffers.co.uk TheVanWebsite.co.uk CarSupermarkets.co.uk CarLeasingSpecialOffers.co.uk CarDealerIss11.indd 52 9/1/09 12:59:54 ing.com CarLeasingSpecialOffers.co.uk FleetDirectory.co.uk ContractHireAndLeasing.com SaveMoneyOnCars.co.uk C

cult cars

LCV insight

...in association with Vansunited.co.uk

Updates and price cuts Richard Aucock reports on a Transit van revamp, unveils more details of Nissan’s NV200 and reports on Vauxhall’s round of price cuts

ord has overhauled the best-selling Transit for 2009, with fresh bodystyles, options and eco aids. The new Transit Double Cab-in-Van looks set to be a popular model as it caters for businesses needing to move both people and payloads. It is a front-drive, medium wheelbase lowroof model, which offers the familiar 2.2-litre TDCi engine in three guises: 85bhp, 115bhp and 140bhp. Prices start, excluding VAT, from £17,420. There is also the new Transit Double Cab Utility Chassis. This has unglazed second row doors, and has had its rear seats removed to create a secure load area for valuable equipment. This eliminates the need for a heavy, costly bed-mounted box – which would also reduce rear payload. Ford has also catered for taxi drivers after local authority approval too. For £80, the glass can be given a light tint option and there’s also a Thatcham alarm now available for £175 on all Transit double chassis cabs. For van drivers keen to do their bit for the environment, Ford has even fitted a gearshift indicator light which blinks when it’s most economic to change gear. Steve Kimber, commercial vehicles director, for Ford of Britain, said: ‘We are always looking to build on Transit core values of cost, economy and durability. ‘Large and small companies alike are always looking for security options, a good environment for the driver and a vehicle that is bespoke for their needs. ‘Listening to those requests for new options creates the strength of Transit and its siblings.’

Huge savings announced in January sale REDUCTIONS of up to £7,800 are headlining a dramatic January van sale from Vauxhall. Running until January 31, the savings on Vauxhall Commercial Vehicles include that dramatic £7,800 cut off the big

Movano model. But there are savings to be had across the board: • Vivaro savings of up to £4,100 • Combo savings of up to £3,500 • Astravan savings of up to £3,500

Meanwhile, Nissan’s forthcoming all-new NV200 compact van – pictured in its concept form – will boast the best in class cargo efficiency when it hits showrooms this year. The new model has a clever new cargo area design, dubbed

• Corsavan savings of up to £3,000 The cash has been slashed off ex-VAT prices, and at participating Vauxhall van dealers only. We’re sure they’ll be of huge interest to credit-crunched van buyers, though.

‘smart cargo floor’ which swallows a standard Europallet between the rear wheelarches. It also takes loads of up to 4.1 cubic metres, despite exterior dimensions in line with other compact vans. ‘The NV200 is a key product for the future success of the Nissan LCV business,’ said Andy Palmer, corporate vice-president of Nissan’s LCV business unit. ‘The NV200 creates a new segment in the small van sector.’

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auctions

Prices begin to stabilise December sees values start to level out as BCA experts predict that bargain prices could get punters buying again

CA says used car values are beginning to stabilise, with December auction values up for the second month running. This comes after large falls earlier in 2008 and means used cars currently remain ‘exceptional value for money,’ according to the auction house. The news conflicts with that coming from rival firm Manheim which reported a fall in December values. However, BCA communications director Tony Gannon believes a return to the peaks of 2008 are unlikely. ‘There is little to suggest such a scenario occurring in the short term,’ he says. The rollercoaster of falls began in November 2007. From then, values rose to record levels in January 2008, before plummeting almost without respite until October. The only brief solace came during May. High to low average values varied by a massive 13 per cent during the first half of 2008. This illustrates the wild swing experienced by the market. In contrast, the second half variance was four per cent. Sectors still thriving include the budget end of the market. Gannon reports a watershed in demand at around £5,000 – the upper limit of affordability, with finance being hard to come by. ‘Until motorists find it easier to raise finance, and some confidence returns to the marketplace, there is nothing to suggest that used car volumes are going to climb in the short term,’ explained Gannon. ‘Even so, 2009 should not see a repeat of the price patterns experienced in 2008.’ In fact, Gannon believes dealers should be fully geared up for strong used car sales in the first few months of this year as tumbling prices have

Used car prices started to stabilise in December – now BCA is optimistic about 2009

‘We might see some improved levels of activity in the first quarter – which could set the scene for 2009.’ made stock very attractive. He is advising dealers to market their used stock on the sheer valuefor-money factor. ‘Used cars have never been better value or more affordable,’ he said. Dealers should use this headline-grabbing fact to give their marketing real impact. Gannon is fairly confident of a strong start to

2009 too. ‘We might see some improved levels of activity in the first quarter – which hopefully will set the scene for the rest of the year,’ he predicted. Dealers, however, should remain sensitive to buyers’ concerns. ‘There can be little doubt that consumers still feel under pressure,’ he added. ‘Despite the significant cuts in the Bank base rate, and the fall in VAT, the only real benefits have been felt by those with tracker mortgages. Add to this the spectre of rising unemployment, and it is easy to see why markets for big-ticket items are stalling in every sector – not just the motor industry.’ RICHARD AUCOCK

First BCA sale of the year sees trade buyers out in force AS this picture shows, there are still hundreds of traders looking to snap up stock in a recession. The auction halls of British Car Auction’s Blackbushe site were packed on the first working day of the new year as sales kicked off. The January 2 event – the first of the company’s ‘Fast Start’ campaign – attracted more than 1,000 optimistic buyers who competed

for hundreds of cars. ‘Our Fast-Start programme ensures we are ready to meet demands of buyers with a great selection of stock from our corporate sellers on the very first trading day of the year,’ said a spokesman for BCA. Hopefully, this positive picture is a sign that things might pick up in the used car market in 2009… NICOLA LINNINGTON

54 | CarDealerMag.co.uk CarDealerIss11.indd 54

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CAR AFTER

CAR

, SALE AFTER

, SALE YEAR AFTER YEAR. At BCA we never stop. Our 2009 sales programme is off to a ﬂying start, so we’ll be ready and waiting to get more cars in front of more buyers than ever before.

www.bca-europe.com

We never stop CarDealerIss11.indd 55

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ilk Bu y M rs ✔ Se l l Ca ise rt ✔Ads vfeor f re e ... job

Ne w j o b s d r a o b g n i t s po r o t o m e h t f or t rade . . .

s ’ t i d ...An y l e t e l c om p e g r a h c f o e f re ✔ p u n t o s ig

o t y a p Wh y s b o j e s i ad ve r t u yo n e h w o? t e v a do n’t h

L o g on to C a rDe a le rM ag .c o.uk a n d ge t p os ti ng n o w It re a ll y is FR EE !!

Free job ads at CarDealerMag.co.uk CAR Dealer Magazine has launched an all-new free jobs posting board for the motor trade! WHAT ARE WE TALKING ABOUT? Well, with the car industry struggling and automotive jobs getting axed left, right and centre we’ve decided to do something about it. We’ve teamed up with our friends at Skupe Net to let you post any available vacancies on our website COMPLETELY FREE OF CHARGE! WHAT’S THE CATCH? There isn’t one. It’s absolutely vital that when a position is available in these troublesome times

it is promoted to as many people as possible and not restricted to the companies that can afford to pay for the privilege of advertising on jobs boards. That’s why our site is FREE to use! We know it sounds too good to be true, but check it out and you’ll see we’re not lying. HOW DO I POST JOBS? All you have to do is register for an account – by entering your business name, telephone number and your details on the registration page of our website. Our partners at Skupe Net will then email you a password and you can start uploading your jobs. We can even accept feeds you use to post jobs on other sites – so if you’re a

recruitment agency uploading vacancies couldn’t be easier! ANYTHING ELSE? Well, now you mention it there is. We also offer some fantastic upgrade packages for your listings. Basic job postings are very detailed, but you might want to give your special positions even more prominence. If you do, we can offer the addition of your logo to attract attention (£1.99 per job), featured slots on the first page of the jobs search engine and, for just £9.99, a copy of the main points of the advert printed in the next issue of Car Dealer Magazine. Deal, or no deal?

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automation

...Advertisement feature

Make it a Win Win World Keeping profits up in these tough economic times is vital for car dealers – but how do you do it? Here, WinWin tell us their tricks for dealers and it could mean doing less...

ow do you remain profitable when new enquiries are dropping at almost the same rate as stock values? It’s the question many dealers are asking themselves at the moment, but there are ways to stave off the economic woe. Automotive consultancy WinWin World has a host of advice for traders in these uncertain times. The firm, run by former e-goodmanners managers Justin Ashton and Mark Taylor-Jones, pictured, has just secured an exclusive distribution deal with q.bit Systems. The deal will see them supply everything from the popular Track Optimiser system, state-ofthe-art lead management programs to complete dealer management system overlays. The latest product – a secure online database that is automatically updated by any existing DMS and other WinWin systems – has led the firm to issue some advice for dealers to help them through the downturn. ‘People will still be using and trading their cars,’ says Taylor-Jones. ‘That’s why it’s important to mine your existing customer database for sales and aftersales. After all these are customers already won over. ‘Why not purchase prospect data? Remove any existing customers and target other dealers’ customers – you’ll find both these points are cheaper and more effective than advertising. ‘Remember to follow up every one of the fewer leads coming through and try to make more money on every deal. Make sure every member of staff is fully utilised and pulling in the same direction and be in a position where you can manage and oversee what everyone is doing.’ Getting the most out of your existing database can be very time consuming to set up and do properly, adds Taylor-Jones. It often requires expertise with a lot of different (often incompatible) IT systems that can be expensive. WinWin provides dealers with a database overlay that sits online and becomes your live marketing and prospecting database. This secure system, regularly updated by your DMS, requires no maintenance and can automate any number of tasks for you. For example, it can ‘de-dupe’ itself, it will grade customers depending on how much of their business comes your way and it can even predict events such as service intervals and wearand-tear item replacement. Better still, it can

Team specialises in helping car dealers WINWIN specialise in helping car dealers increase efficiencies through better processes. They have created a very simple yet complete solution to the age-old problem of giving life and connectivity to a database, not only for vehicle sales, but for all sales. They do this by providing

managed and controlled processes across all departments. WinWin World was founded by Justin Ashton and Mark Taylor-Jones, pictured above, formerly of e-goodmanners, and between them they have many years of experience throughout all areas of the industry from aftermarket to sales, inside dealerships and

‘Track will make on average £100+ more profit per deal – and even more in some cases. It also ensures you never lose on a deal.’ even predict the exact timing for when finance customers can be re-prospected. And it can then pass this information back to Track and present a deal for the salesperson. This intelligent database can check records against Experian data and provide lists for call centres and tasks for dealership staff without any ongoing user intervention whatsoever. Just imagine the time that could save! ‘Purchasing data is easy enough, it’s everything else that can be tricky with limited time and resource,’ adds Taylor-Jones. ‘How do you know you have not contacted the prospect before? Advertising, though more costly and indirect, is much easier to manage which is why most dealers go down this road. ‘WinWin will allow you to purchase data for your targeted prospecting then pass it back to the database to remove any existing customers, then match it to any history for customers prospected before. This data can then be used

externally as suppliers. WinWin have secured an exclusive worldwide distribution agreement with q.bit Systems Ltd. Nigel Pates, q.bit Systems MD, said: ‘We are delighted to have people of Mark and Justin’s calibre on our side – spreading the message that there is a better way to run a dealership.’

for mailout, telephone, SMS or a mixture of them all. ‘It is even possible to employ outside call centres to make your calls for you, using your data and your interface, giving you complete control.’ Giving salespeople the choice over who to contact and when can be risky. Passing some of these calls to third parties can be very effective. Lead management is also in line for a much more dynamic approach, something WinWin will be revealing very shortly. Making more money out of your deals is possible. People often say they can do without Track because all stacking deals can be done manually. Well, ask any one of the 400 Track users and they will have a very different view. They use Track to optimise the profit in every single deal. Track will make on average £100+ more profit per deal – and even more in some cases. It also ensures you never lose on a deal. Track presents the user with every single detail he or she needs including new/used car pricing, promotions, incentives, finance commission, electronic proposals and add on sales. It can even let the user know when volume targets have been made, roll back the profits and work out commissions. On-going consultancy is provided by WinWin to help you build a perfect process throughout the entire business from showroom to aftersales too. E-mail callmenow@winwinworld.co.uk or call (020) 7538 6688

CarDealerMag.co.uk | 57 CarDealerIss11.indd 57

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CarDealerMedia

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Call for details >> 0844 880 1630 www.cardealermedia.com

CarDealerIss11.indd 58

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products 1. The A-Team Van

Price: £30 Contact: firebox.com A VERITABLE icon of 80s popular culture, the A-Team van has been miniaturised so boys of a certain age can recreate the antics of the crack commando force. Just like the full-sized version this model has forward and reverse gears, but also boasts a Mr T-pleasing turbo boost feature. It has working headlights, bull bar, roof spotlights and runs on four AA batteries. And the best bit? You don’t have to disappear into a garage with just chewing gum and a welder to put it together as it comes ready to roll. We pity the fool that doesn’t want one!

2. LED Car Sign

Price: £25 Contact: iwoot.com THE LED Car Sign uses emoticons, as well as a series of words, to get the message across to the driver behind. If someone lets you out of a junction or into their lane on the motorway you can hit the remote control and ‘thanks’ will be flashed up and when you’ve made a mistake, the handy ‘sorry’ could avert a bout of road rage.

3. Mini Coyote

Price: £200 Contact: coyotesystems.co.uk THE Mini Coyote is one of the few dedicated speed camera locators to reach the market recently and aims to attract buyers with a clever trick. Every time you turn the unit on it uses a GPRS module to download the very latest information, so your database is always current. It also transmits data between users so when new or mobile cameras are spotted other subscribers are alerted within seconds.

4. Autowrench

Price: £30 Contact: blackanddecker.co.uk BLACK & Decker has brought the bodger’s favourite bang up-to-date by adding a button that automatically closes the jaws to fit the nut or bolt you’re trying to adjust. The Autowrench can even cope with 185 lb/ft of torque. All we need now is a gadget to tie our shoelaces for us.

5. Aston Martin Cufflinks

Price: £80 Contact: astonmartin.com THESE cufflinks will make even a Ben Sherman shirt look cool! They are fashioned to look like the wheel spinners seen in the centre of older Aston Martin models’ wheels and are made from sterling silver. Unlike the cars, you won’t need a mortgage to lay your hands on a set!

6. Gerber Gift Packs

Price: £20 From: 01506 406277 GERBER has packaged together two of its most popular tools with its trusty Tempo torch. The cheaper set (£20) includes the 2.5-inch Clutch that features a set of pliers, blade and handy drivers. The second pack bundles the larger, standard-sized Evo with the torch for £50.

7. Strida 5.0

Price: £400 Contact: strida.co.uk THE Strida is one of the funkiest-looking folding two wheelers we’ve seen for a long time and is the perfect size to slot into a car boot. Made from aluminium, it features disc brakes, LED lighting and has a Kevlar belt instead of a chain.

CarDealerMag.co.uk | 59 CarDealerIss11.indd 59

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Specialist Automotive Finance (SAF) has been launched by the Finance and Leasing Association to raise standards and improve skills surrounding the sale of motor nance in car showrooms for the benet of the automotive industry and consumers. For more information visit:

www.specialistautomotivenance.co.uk www.nancingyourcar.co.uk ANNOUNCING AN IMPORTANT NEW FLA EVENT

Debt Recovery for Lenders

Understanding Debt and Implementing Effective Risk and Recovery Strategies in Consumer Credit 27 January 2009, ICO Conference Centre, London W1

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Why should you attend? New gures show that debt enquiries to Citizens Advice Bureaux (CAB) in England and Wales have hit a record high, increasing by 20% in the last year. Debt is now the number one issue advised on by CABs across the country. This event provides businesses offering consumer nance with an update on the size and shape of the problem; debt arrangements on offer; the legal position; recovery and collection strategies and practical pointers to avoiding the pitfalls.

You will hear from experts from: Nationwide Building Society; Shelter; the Insolvency Service; Ministry of Justice; Close CM; H B J Gately Wareing LLP; Morton Fraser; McManus & Kearney; Callcredit; GMAC UK

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9/1/09 13:00:11

Peering into the lives of the motor trade...

On The Spot

Name: Marcus Kelland Age: 44 Lives: West Sussex Any family? Girlfriend and a cat.

with innovative ideas and then watching others copy you. How much do you earn? More than when I worked for someone else.

What do you drive? Merc ML.

Do you have an average day and how does it pan out? Not really, but I do have a daily meeting with our in-house web developers.

What was your first job? Trainee manager for Sainsbury’s. What was your first car? £75 worth of Renault 4.

What newspapers/magazines do you read? The Week.

Who do you work for now? I own and run Autotrade-mail. com. What does this involve? We have four departments within the business, which are sales, database, IT/development and accounts. Having started the business from scratch, I have a thorough understanding of all four areas and keep a constant eye on them using automated KPIs. I then get involved as and when the need necessitates. I have a fantastically loyal and

dedicated team around me, which leaves me plenty of time to focus on directing the business at a more detached level. It also affords me time to create new ideas. What are your job’s biggest challenges? Adding value while maintaining the £40 monthly fee we set back in 2001. Any downsides? Coming up

question – but you do have to compromise in a relationship: Sex in the City. Favourite football team? None, I didn’t get the football gene. What is the biggest challenge car dealers face? Adapting their businesses for the future, as I don’t believe the current franchised model with the overheads it brings, is sustainable.

What’s your mobile phone ring tone? Old-fashioned ring.

What would be your number one tip for car dealers? Pay for the best staff you can afford and look after them. If they feel valued and involved they will do a great job looking after your customers.

What’s your favourite film and the last one you saw? Can’t decide between Once, Crash, Shine and The Usual Suspects. And the last one, well, that was a badly timed

And finally... what’s your motto in life and business? Actively look for problems and employ people smarter than you.. they don’t often ask you questions!

What is the most expensive thing you’ve ever bought? Guitars – you can never have enough!

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

CarDealerMag.co.uk | 61

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used cars z

Trading Places

...in association with BEN

Our knight saves the day Just when we thought the show wouldn’t go on, along comes a knight in shining armour and our bid to raise cash for BEN is back on. Hoorah!

e have a knight in shining armour! It’s been depressingly quiet on the Trading Places front over the past few months. Such is the turmoil our industry is going through, people just haven’t been able to give any attention to our money-raising agenda. However, supporting charities such as BEN is all the more imperative now the recession is starting to bite. Funds for the automotive charity are expected to come under real pressure during 2009. So we really need to gear up with help in any way we can. So, praise be to James Brockleshurst, of Arron James Prestige Cars! Out of the blue, he called us, to say he was more than willing to take up the baton and raise some funds for the automotive charity. Needless to say, we were more than happy to get him on board! His challenge will not be easy. Customers are particularly thin on the sadly failed to materialise. ground at this time of year, so makAfter crunching the figures ing a sale will be tricky, never mind to see which cash pledges have making a healthy profit for BEN. But, actually come through, BrockleBrockleshurst is confident. shurst has £1,250 to play with. How much does he have to play And, as we explained a few with? Well, the fund has been taking months back, he can use this a bit of a hit for all sorts of reasons money in any way he sees fit to over the past few months. That’s make a profit. because some cash injections have Indeed, we’ve recommended

‘Out of the blue he called us to say he was more than willing to take up the baton for BEN.’ the best route is to probably do as James Khan did, and invest the total fund as part of a part-ex, and give BEN a slice of the profits. This should give him the required flexibility to choose the best car possible, to get a much-needed quick sale. So, who are Arron James? Well, they’re a company based in

BEN – the automotive industry charity AROUND one in 10 people in the UK are eligible for BEN’s help. The charity provides assistance to more than 15,000 people, offering practical, emotional and financial support for issues ranging from disabilities to depression, loneliness and poverty. Support varies from providing advice and

assistance with practical help, offering emotional support and working with other agencies to give specialist advice on debt. BEN has a nationwide team of welfare officers who make home visits to offer help to individuals and families. They examine their needs and support people through tough times.

Our Trading Places feature is aiming to raise cash for automotive industry charity BEN. Could you help us? Dewsbury, West Yorkshire, The company vows to give each car it sends out a full MOT and predelivery inspection, while the sales team boasts decades of automotive industry experience. Brockleshurst also says they offer a unique loyalty package. ‘This gives buyers road fund licence, a full tank of fuel, three months’ warranty, a free MOT for life, plus 20 per cent off all repair and servicing costs.’ It’s something he expects will prove particularly popular in 2009, as car buyers look to fix motoring costs as much as they can. Here’s hoping it also helps the dealer make a healthy amount of cash for BEN. If you can help too, call us on (023) 9252 2434.

It wouldn’t have been possible without... CarDealerMag.co.uk | 63 CarDealerIss11.indd 63

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used cars

New year, new hope?

Estate cars are set to enjoy market favour, says HPI’s Valuation Expert, Martin Keighley

Slowdown in depreciation is expected mid 2009, according to HPI Used Car Valuations Index

ealers will be hoping 2009 brings some stability to the market place. However, while retail demand for used cars up to £4,000£5,000 is healthy, almost everything else is patchy. Normally, values move up three to four per cent at this time of year, however, poor retail performance means only the lucky few models are up just two per cent, while others stay the same or move down. There continues to be a shortage of the right stock to satisfy demand. Clean older small to medium-sized cars with service history and low to average mileage are thin on the ground. Owners are either hanging onto them until the economy becomes more stable, or they are selling-on privately, thus bypassing dealers. The new 13 band VED system arrives on April 1 with the original taxation levels now scaled down and government cash hand outs are theoretically aiding us. But is this just creating a ‘bail-out’ society and general confusion? When will the government proffer a genuine helping hand? Moving quickly on, many two-car households will be cutting back to one practical vehicle with style and image taking a back seat. As such, medium sized estates are enjoying a newfound popularity. I expect values to stabilise on models such as Focus and Astra estates – offering greater practicality at no extra running costs.

he used car market continues to look bleak, as the rate of depreciation gathered speed in December. However, expect the slide in values to slow down significantly, especially when the reality of the VED changes turn out to be less drastic than many expected. With this in mind, market values should level out by mid-2009, offering a glimmer of hope. While 2007 saw an exceptional shortage of quality used cars, demand remained strong into December, with consumer confidence still high. Indeed, December values barely moved from November levels in 2007. However, the picture looks very different in 2008, with the only shortage being in the sub £4,000 cars category. Elsewhere demand is extremely low. Year on Year changes Similar to last month, all 12 month cars have seen the decline increase from 24.6 per cent to 28.1 per cent, while 36 month cars saw an increase from 29.1 per cent to 33.4 per cent. Unsurprisingly, the luxury sector has been hardest hit with an increase on 12 month cars of 41.1 per cent, followed closely by MPVs with a 30 per cent increase. True to form the city cars and superminis fared better than other sectors. The picture continues to look fairly bleak,

Medium 4x4 sector 10 major fleet players Rank

Model

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

VW Tiguan Audi Q5 Volvo XC60 Audi A6 Allroad Renault Koleos Ford Kuga Volvo XC70 LR Freelander 2 Mitsubishi Outlander SEAT Altea Freetrack

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

Kia Sportage Hyundai Tucson Jeep Patriot VW Tiguan SEAT Altea Freetrack SSangYong Kyron Renault Koleos Ford Kuga Jeep Compass Chevrolet Captiva

regardless of fuel type. The petrol sector saw depreciation increase from 23.4 per cent to 28.3 per cent on 12 month cars, while diesel got away with a slightly smaller increase to 26.8 per cent, with city diesel cars seeing the smallest increase of six per cent. While 36 month petrol cars increased from 30.5 per cent to 34.9 per cent and diesel took a more favourable 27.2 per cent to 31.4 per cent increase. November to December 2008 changes The month-on-month view shows all 12 month cars continuing to decline. The gap between fuel types closes slightly on a month-by-month basis with the petrol sector declining at 5.8 per cent and 6.3 per cent on 12 month and 36 month cars, respectively. Values in December this year are five to six per cent lower than they were in November, highlighting the ever-present spectre of depreciation. However, it’s not all doom and gloom, as values are expected to perk up in the next six months, giving dealers something to look forward to as the new year gathers pace.

Luxury car values continue to be hit hard

...in association with HPI Valuations

Models in range

Average new price

Average RV 36(60) £

Average RV 36(60) % Monthly depreciation cost £

18 6 14 4 8 2 12 13 6 2

£22,118 £33,335 £28,492 £38,128 £21,395 £21,900 £34,277 £28,798 £23,812 £19,330

£8,800 £13,025 £10,843 £13,738 £7,650 £7,725 £11,427 £9,427 £7,583 £5,988

39.8 39.1 38.3 36.1 35.9 35.3 33.4 33.1 32.0 31.0

370 564 490 678 382 394 635 538 451 371

9 5 5 18 2 6 8 2 3 7

£16,639 £17,355 £17,995 £22,118 £19,330 £18,912 £21,395 £21,900 £18,938 £21,452

£4,942 £4,735 £5,245 £8,800 £5,988 £5,367 £7,650 £7,725 £4,542 £6,382

29.7 27.3 29.2 39.8 31.0 28.5 35.9 35.3 24.0 29.8

325 351 354 370 371 376 382 394 400 419

64 | CarDealerMag.co.uk CarDealerIss11.indd 64

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...in association with HPI Valuations

New car sales drop 11.3 per cent in 2008 after a difficult year

ar sales fell 11.3 per cent in 2008 as figures released today by the SMMT show December sales dropped 21 per cent. The total sales figures for 2008 fell to 2,131,795 units - from 2,404,007 in 2007. ‘The global economic downturn, precipitated by the crisis in the banking and finance sector, created unprecedented challenges for the industry in 2008,’ said SMMT chief executive, Paul Everitt. ‘The measures taken by government to support the banking sector have been necessary, but are

not yet sufficient to restore confidence. ‘Further action to ease access to finance and credit across the economy is essential if long-term damage to valuable industrial capability is to be avoided.’ ’December is traditionally the quietest month in the automotive calendar, but the figures still point to falling confidence among buyers. ‘The full-year new car sales figures for 2008 clearly show that demand was strong until consumer confidence dropped sharply during the

final few months of the year as a result of worsening economic conditions,’ said Sue Robinson, director of the RMI’s National Franchised Dealers Association (NFDA). ‘This highlights how important it is for government to enact measures to help boost confidence. Consumers want assurance from the government that jobs are secure, that disposable income will not decline further, that general economic conditions will start to improve, and that credit will become more generally available.’

SMMT sales data December / year to date

Figures supplied by SMMT

December 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

2008

5 257 47 4,753 28 6,365 2 729 142 3,828 1 175 1 172 3,058 18,188 3,407 1 1,280 924 175 1,169 1,292 406 22 2,166 5,080 10 2,317 321 1,937 19 5,212 187 49 3,139 0 0 886 1,394 1,653 546 36 156 1,313 0 4,442 19,058 10,469 1,703 84 87 108,691

% market share

0.01 0.24 0.04 4.37 0.03 5.86 0.00 0.67 0.13 3.52 0.00 0.16 0.00 0.16 2.81 16.73 3.13 0.00 1.18 0.85 0.16 1.08 1.19 0.37 0.02 1.99 4.67 0.01 2.13 0.30 1.78 0.02 4.80 0.17 0.05 2.89 0.00 0.00 0.82 1.28 1.52 0.50 0.03 0.14 1.21 0.00 4.09 17.53 9.63 1.57 0.08 0.08

2007

0 443 70 5,078 73 9,605 4 1,044 561 4,573 2 300 1 247 3,058 21,856 5,488 9 1,256 1,020 184 1,741 2,337 817 38 1,980 6,775 0 3,438 970 2,642 38 6,283 311 76 5,815 0 0 1,228 1,872 3,093 409 24 449 2,770 2 4,691 20,260 12,904 1,937 56 132 137,960

Year to date (YTD) % market share

0.00 0.32 0.05 3.68 0.05 6.96 0.00 0.76 0.41 3.31 0.00 0.22 0.00 0.18 2.22 15.84 3.98 0.01 0.91 0.74 0.13 1.26 1.69 0.59 0.03 1.44 4.91 0.00 2.49 0.70 1.92 0.03 4.55 0.23 0.06 4.21 0.00 0.00 0.89 1.36 2.24 0.30 0.02 0.33 2.01 0.00 3.40 14.69 9.35 1.40 0.04 0.10

% Change

0.00 41.99 32.86 6.40 61.64 33.73 50.00 30.17 74.69 16.29 50.00 41.67 0.00 30.36 0.00 16.78 37.92 88.89 1.91 -9.41 -4.89 -32.85 -44.72 -50.31 -42.11 9.39 -25.02 0.00 -32.61 -66.91 -26.68 -50.00 -17.05 -39.87 -35.53 -46.02 0.00 0.00 -27.85 -25.53 -46.56 33.50 50.00 -65.26 -52.60 -100.00 -5.31 -5.93 -18.87 -12.08 50.00 -34.09 -21.22

2008

100 5,950 1,565 100,845 1,542 113,132 171 18,372 5,647 81,237 13 4,841 33 3,911 55,325 322,514 83,805 174 28,036 20,346 4,062 31,324 32,567 10,122 647 49,858 74,883 133 40,736 15,552 66,336 624 118,701 5,918 1,518 89,570 2 3 16,074 29,397 37,100 7,526 629 4,668 26,095 1 105,717 298,912 179,189 33,358 995 2,019 2,131,795

%market share

0.01 0.28 0.07 4.73 0.07 5.31 0.01 0.86 0.26 3.81 0.00 0.23 0.00 0.18 2.60 15.13 3.93 0.01 1.32 0.95 0.19 1.47 1.53 0.47 0.03 2.34 3.51 0.01 1.91 0.73 3.11 0.03 5.57 0.28 0.07 4.20 0.00 0.00 0.75 1.38 1.74 0.35 0.03 0.22 1.22 0.00 4.96 14.02 8.41 1.56 0.05 0.09

2007

0 7,355 2,190 100,864 2,100 121,575 344 18,356 9,131 97,750 51 5,035 37 3,273 59,409 348,982 106,018 61 29,765 18,712 6,148 29,372 46,552 15,119 712 50,947 82,321 1 47,661 19,047 66,426 767 146,094 8,533 2,468 126,816 72 128 23,642 34,790 39,907 5,252 1,323 6,051 32,861 5 118,493 331,321 197,020 30,058 843 2,249 2,404,007

%market share

0.00 0.31 0.09 4.20 0.09 5.06 0.01 0.76 0.38 4.07 0.00 0.21 0.00 0.14 2.47 14.52 4.41 0.00 1.24 0.78 0.26 1.22 1.94 0.63 0.03 2.12 3.42 0.00 1.98 0.79 2.76 0.03 6.08 0.35 0.10 5.28 0.00 0.01 0.98 1.45 1.66 0.22 0.06 0.25 1.37 0.00 4.93 13.78 8.20 1.25 0.04 0.09

% Change

0.00 -19.10 -28.54 -0.02 -26.57 -6.94 -50.29 0.09 -38.16 -16.89 -74.51 -3.85 -10.81 19.49 -6.87 -7.58 -20.95 185.25 -5.81 8.73 -33.93 6.65 -30.04 -33.05 -9.13 -2.14 -9.04 13,200.00 -14.53 -18.35 -0.14 -18.64 -18.75 -30.65 -38.49 -29.37 -97.22 -97.66 -32.01 -15.50 -7.03 43.30 -52.46 -22.86 -20.59 -80.00 -10.78 -9.78 -9.05 10.98 18.03 -10.23 -11.32

Get these figures first every month! New car sales figures revealed at CarDealerMag.co.uk on the fourth working day of every month. CarDealerMag.co.uk | 65 CarDealerIss11.indd 65

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tail light

Sub-Prime Time J

anuary is traditionally a time for reflection and planning; reviewing the previous year and using this review to plan and make changes for the coming 12 months. However, now’s not really the time for reflection, it’s about making your ‘best guess’ as to what the foreseeable future holds, and making the right decisions for your business and local market. So, what do I think the foreseeable future holds? Well, I think new car dealerships will be hit hard, but not as hard as many pundits are forecasting. It’s true that many mainstream manufacturers intend to reduce their retail outlets in line with lower volume expectations, but at the same time some manufacturers (notably those producing low-cost cars) have growth aspirations in the cost conscious market ahead. So, we’re likely to see increasing numbers of multifranchise sites, with dealers ‘sweating their assets’ by adding a second or even a third franchise. Therefore, I don’t think dealer closures in 2009 will be as huge as some would have you believe, but new car sales are going to be hit hard in 2009. And new car dealer outlet numbers will fall to a sustainable level that is in line with the level of new car buying customers. Motorists had already moved towards used cars in 2008 and will increasingly do so during the coming year, and as this movement increases we’ll also see traditional new car dealers moving towards used sales. I think 2009 is likely to be a ‘steady’ year for used sales, as those customers that have put off their purchases in 2008 now find their current car is going to start costing them money, and with the current offers available it makes sense to purchase a younger used car. So, while used sales are still likely to be depressed, with the movement of customers from new to used and with increasing numbers of customers ‘needing’ to

‘And here’s the problem – I believe there will be a useful level of customers wanting to buy used cars in 2009, but finding them funding won’t be easy.’ change their cars, I’m expecting 2009 to be okay in the used market. However, herein lies a problem. While there’s going to be a useful level of used car buyers, many finance lenders are continuing to have difficulties in obtaining funds to lend at competitive margins, and some lenders are simply having difficulties obtaining any funds. This means that due to a lack of available funding motor finance lenders will continue to lend on only the most profitable deals that come their way (and this will normally be the lowest risk customers), point-of-sale finance choice will become increasingly restricted. And here’s the problem – I believe there will be a ‘useful’ level of customers wanting to buy used cars during 2009, but finding them funding won’t be easy. Dealers need to make a careful decision and partner with motor finance providers that will offer them dependable funding lines during 2009 in line with their stock, market and customer expectations simply to ensure they can sell the cars they have on offer.

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.

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

Editorial Director James Baggott E: james@blackballmedia.co.uk T: 023 9252 2434

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

Contributors Chris Jervis, Dan Harris, Mike Askew, Dave Timmis, Duncan Chappell, Simon Evans and Nicola Linnington Thanks to... Justine Hoadley, Tim Marlow, Tim Naylor, Linda Baggott and Bernard McGranaghan

Car Dealer is published by Blackball Media Ltd (Company No 6473855) and printed by Warners. All rights reserved. Conditions of sale and supply include the fact Car Dealer shall not, without our consent, be lent, resold, hired out or otherwise disposed of in a mutilated way or in any unauthorised cover by way of trade or affixed to or as any part of a publication or advertising, literary or pictorial matter whatsoever. Car Dealer is fully protected by copyright and nothing may be printed wholly or in part without permission.

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0115 946 6370

Many Happy Returns 17% of our business comes from returning customers – and we always encourage people to visit the same dealer for their next vehicle (or point them towards a supporting dealer from our network). To help your business benefit from our many returning customers, join our dealer network by calling 0115 946 6370 today. First Response Finance Limited, Chetwynd Business Park, 5 Regan Way, Chilwell, Nottingham NG9 6RZ

CarDealerIss11.indd 67

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