Car Dealer Magazine: Issue 14 by Blackball Media

CarDealer. Issue 14 | May 2009 | CarDealerMag.co.uk

[ BANGERS4BEN: TIME TO SELL OUR CARS p38 ]

Driving the future of the motor trade

Audi R8 V10

OUR FAVOURITE SUPERCAR JUST GOT BETTER WI

Re N! Lew plica is F1 heHamilton lm p63 ets

DROP-TOP DOUBLE

New BMW Z4

Does roadster’s folding roof give best of both worlds?

Bentley Speed GTC

New halo model for dealers – but is it what they really need?

+Abarth 500 +Cayenne Diesel

Koenigsegg CCX MEET THE EDITION THE STIG BUILT

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start Issue 14 | May 2009

‘Porsche knows you have to adapt to survive. Hence the Cayenne in general and now this, the Cayenne Diesel.’

Road Test: Porsche Cayenne Diesel, p26

THERE are few things that get me irate. Okay, that’s a lie. There are loads of things that get me irate – but this one has me even more fired up than normal. What is it that’s got my blood boiling? The UK scrappage scheme, that’s what – or more accurately, the lack of one. I know, from chatting to dealers just like you, that the industry is suffering. Although no-one likes to admit it in front of their friends or business colleagues, times are tough. You only have to look at the redundancies, showroom closures and sales figures to know that. Yes, the used car market is relatively buoyant – for many of you I suspect it’s what’s keeping you afloat – but the fact remains business at the moment is no walk in the park. And that means the last thing you need is delay, dithering and indecision from the government on a scrappage scheme. This is worse than no decision at all. If buyers think there’s a remote possibility that the goverment might stump up £2,000 for them to chop in their smoky old banger for a nice clean, green automobile then of course they are going to hold out for a decision. Who wouldn’t? But every day the government lets the rumours swell is another 24 hours of pain for the industry. This is why we launched our Scrap Scheme Now

campaign at CarDealerMag.co.uk in the last week of March. I know the scrappage scheme has its doubters, but there are clear facts that, in markets where it has been introduced, it’s having positive effects. There are even reports from Germany that some dealers there are actually running out of cars! Yes, I know a lot of the cars this £2k carrot will be available for are manufactured outside of the UK, benefiting other economies – but the fact remains dealers will be selling more cars. And that means the people you employ and the local businesses you trade with will benefit too. On pages 22 and 23 of this issue we report on our campaign and the leading industry figures that have backed it. I’d love to know what you think. Is the scheme the right thing for the industry? You can text me your thoughts to 82085, starting your message with the word DEALER. Texts cost your usual rate. Or email james@blackballmedia.co.uk. Also in this issue is the latest instalment of our Bangers4BEN challenge. This month we’ve been trying to sell the ‘pre-loved’ used machinery that hauled us from Portsmouth to John O’Groats and back again to make a profit for BEN, the automotive industry charity. It’s been a lot of fun – but a lot of hard work too. It makes me admire you guys who do it for a living even more. We’ve got a whole bunch of cracking road tests this month too. The Audi R8 V10, that graces the

cover, gets a V10; Mini’s Cooper S gets a new rival in the shape of the Abarth 500; and the Cayenne gets the diesel engine Porsche said it never would. We’ve also inducted the Koenigsegg into our Cult Cars hall of fame, while deputy editor Rich has been putting in some air miles to report from the launches of the Bentley GTC Speed and BMW Z4. Yes, it’s been a busy month… But lastly, an apology. Our Mobil 1 competition, giving you the chance to win one of ﬁve half-sized replica Lewis Hamilton helmets, had a duplicated number in the multiple choice in last month’s issue. To make up for it we’re extending entries for another month and making it even easier to take part. There’s only one very simple question to answer now and you can enter via text too – and it won’t cost you any more than a standard SMS. Check out the details on page 63. Happy selling – and ﬁngers crossed this time next month we’ll be reporting on how a scrappage scheme will work here…

James Baggott, Editor

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ignition Issue 14 | May 2009

‘It is most famous for being the car The Stig developed. Remember the Koenigsegg’s first lap of the Top Gear track? It ended in a spin.’ Cult Cars, p30

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Nissan’s dealer aid

Dealers demand Evora

13 14 16 18 20 22

Marque rolls out immediate help Network wanted, network got

Buyers want scrap

Dealer survey on scrap scheme

Renault swap shop Kia chief reveals approaches

We can cash in

Exclusive interview with SEAT boss

Blue Rewards

New scheme’s successful start

Big Mike Scrap Scheme Now

forecourt 24 26 28 30 33 34 36

Audi R8 V10 Cayenne Diesel Bentley Continental GTC Speed Cult Cars: Koenigsegg BMW Z4 Abarth 500 Sales Legends: Mercedes 190

features 38

Bangers4BEN II

43 45 47 49 51 52 54 57 58 63 64 65 66

Right Click Servicing Dot Com LCV Insight On the Spot Cash Machine

Meet the million pound man

Products Accidents Auctions WIN Lewis lids!

Hamilton helmets up for grabs

HPI Valuations SMMT sales figures Sub-Prime Time

PICTURE: CARSTUDIO.IT

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dashboard We’re on Twitter – are you yet? HAVE you heard of Twitter yet? If you haven’t you will do very soon. It’s the new craze sweeping the web and even car manufacturers are getting involved. Basically, it’s a way of telling people what you’re doing in 140 characters or less – sort of text message-sized chunks of information that tell your ‘followers’ what you’re up to. If you’re into Facebook you’ll know all about the status update function – it’s pretty much an extended version of that. There are hundreds of car dealers on Twitter in America, many using the service to update their customers on their latest deals and offers. Maybe it’s about time dealers in the UK did the same?

Some of our Tweets from the last month WE tweet the latest Car Dealer news, exclusive pictures, and random thoughts every day. Follow us today at: Twitter.com/CarDealerEd Obama sends US carmakers packing... Who said our industry was boring? http://is.gd/ pGHn 5:43 PM Mar 30th This is why I love London – car spotting! Ferrari 599 near pall mall. http://twitpic. com/2ls1e 2:59 PM Mar 30th

I know I mentioned it earlier – but this really is good. Clarkson locked in a toilet by fans in Mallorca: http://is.gd/pnmb 2:28 PM Mar 28th

Could your dealership claim back cash on demonstrators? You have until Tuesday to do it! http://is.gd/p2V6 11:28 AM Mar 26th

Nissan rolls out aid for dealer network Specialist ﬁrm drafted in to help marque’s retailers NISSAN GB has sanctioned immediate aid for its UK dealer network in the face of weak trading conditions. The scheme provides car dealers with operational and financial performance support. It is backed by APD Group which has launched a new Business Planning and Quality Department, headed up by Richard Clark, to assist dealers. ‘The economic climate, and the need for dealers to understand, and be prepared for, the ambitious programme of new model launches,’ he says, is the reason for the scheme’s introduction. A hi-tech computer will analyse the health of each dealer to ensure financial and operational proceedings are on track. Clark and three field-based managers will be visiting the Nissan

Nissan dealers are looking forward to the 370Z’s arrival What do you think? Text DEALER and your comments to 82085

Texts cost your normal rate

network and working on mid-term plans to ensure both profitability and, more immediately, viability. This will highlight areas for the dealers where short, medium and long-term opportunities for increased business, improvement in processes, or structural or

reporting changes will have a positive impact. What’s led to the scheme? Scott Elliott, APD Group director, said: ‘It demonstrates Nissan’s commitment to their dealer network, and APD are proud to have been chosen as the partner to support this activity. ‘We are confident that the dealers will see real benefit from the hands-on approach our consultants take.’

Obama forces Wagoner out

PRESIDENT Barack Obama has forced the chief executive of troubled carmaker GM to resign. Rick Wagoner relinquished his post at the end of March as Obama outlined a new rescue package for GM and fellow troubled maker Chrysler. The two carmakers have already received billions in bailouts, but it is believed Chrysler needs a further $5bn and GM $16.7bn. The President has been frustrated with the two firms’ plans to turn their fortunes around, branding efforts ‘unrealistic’. At the time Car Dealer went to press, Obama had demanded Chrysler merge with Fiat or another manufacturer. For updates on the crisis check out CarDealerMag.co.uk.

Ford: Volvo buyers line up

Kidd first to take eco driving test MODEL Jodie Kidd has proven that going green can be sexy, by taking a Fiat ‘eco’ driving test! The supermodel – pictured right – was the first person in the UK to do so and used a Fiat 500 in the pilot scheme. It’s being run in 10 London Fiat dealerships – and, if it’s a success, will be rolled out nationwide. The eco driving test is similar to a regular testdrive, but utilises Fiat’s eco:Drive feature. This is incorporated in the Blue&Me system fitted to the 500, Grande Punto and Bravo. It allows drivers to download their economy-driving profile to a home computer via a USB pen drive. Drivers are awarded

marks out of 100 and, just like F1 style racing telemetry, are graphically shown how they can get more to the gallon. Step-by-step tutorials are also available. ‘Our test-drive allows buyers to test the car, ascertains how they drive in environmental terms and gives them tips on improving, regardless of whether they buy from us or not,’ said marketing director Elena Bernardelli. Kidd was certainly taken with the concept: ‘The technology is absolutely right for the moment. People should be thinking more about their driving and the environment – it’s a great idea.’

FORD has confirmed there are a number of parties looking to buy its loss-making Swedish arm Volvo. The car giant has said it is pleased with the amount of interest and the quality of the bidders – but hasn’t said who they are. There are reports in Sweden that Chinese firms Chery Automobile, Dongfeng Motor Group and Chongqing Changan Automobile are interested in snapping up the marque, though. ‘Ford is now talking in more detail to these interested parties about the future for Volvo,’ a spokesman said.

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Lotus dealers were behind new Evora DEMANDS from Lotus dealers led the company to halt its top-end supercar and build the Evora instead, Car Dealer has learned. ‘It answers the question of where people go after the Elise,’ a spokesman told us. ‘It stops people leaving the brand.’ Lotus chief Mike Kimberley is the man behind it all. He rejoined the company three years ago, and made sweeping changes straight away. ‘He listened to dealers, and asked the design guys what they were doing,’ added the spokesman. ‘They showed him the mid-engined supercar they were planning. He told them to scrap it and that we were going to do something else – a step in between.’ And the Evora, just 27 months later, is that car – Kimberley’s vision of answering Lotus dealers’ calls. What’s more, the design process has been so efficient that it has even come in under budget.

The new model costs £47,500, a healthy amount below estimates. The marque’s retail network is very excited, said Car Dealer’s source. ‘We don’t want to be Porsche, so won’t be building more than 2,000 a year. By July, we’ll be making 35 Evoras a week, and will double that soon after – but no more. The initial response has been extremely encouraging, though. It is tough out there, but we’re very lucky, as we have a new car. For some people, that’s still a must-have.’ The car has been a particular hit in the online community too, he said. The Evora we sat in at the Geneva Motor Show is now touring 25 UK dealers giving them a full rundown on the vital new car prior to it hitting the market on April 27. ‘Our dealers are as loyal as anything,’ added our spokesman. ‘We want to reward them, by taking it to them.’ RICHARD AUCOCK

Organisers confirm British Motor Show’s canned THE 2010 British Motor Show has been canned, it has been confirmed. It had been feared for months the showcase would be axed, as more and more manufacturers refused to commit. But the decision comes after attempts to revive the show at London’s ExCeL moved the event to the Docklands. This was designed to persuade key industry chiefs to attend. Being situated right next to London City Airport was cited as a key reason for the move away from Birmingham’s NEC. But, while visitor numbers were

rising, they were still not even half what they were in the late 1970s. Key manufacturers staying away didn’t help either – BMW, Volkswagen and Will you miss the Motor Show? Text DEALER then your comments to 82085 Texts cost your normal rate

Audi all failed to show last year. ‘The global credit crunch has created a level of uncertainty that deters manufacturers from committing to large-scale, international events,’ said SMMT chief Paul Everitt.

Burgess Just checking Beware the false dawn, we’re not out of the woods yet

hile recent headlines would have us believe that the economic picture is looking brighter, I’m truly not convinced. In fact, I’d go as far to say it could be a false dawn. The picture that my team on the road and I are seeing is telling a far different story. Motorists today are prepared to own their current car for much longer and care much less about driving an older, less reliable vehicle that doesn’t have the allure it once had. Added to this, the lack of quality used stock for those who do want to buy is hitting what few sales opportunities there are for dealers. But perhaps an even bigger concern for the industry is that the mentality of ‘The bottom line consumers has shifted. You only have to look at is we’ve got a the high street to see long rocky road that retail sales are down and with unemployment ahead of us looming for many, there’s before we start a social stigma attached generally to splashing out. to see any signs Replacing your set of of economic wheels while your neighbour is facing redundancy recovery.’ just isn’t seen as the done thing. I believe we have the unenviable task of trying to ﬁnd ways to make it acceptable for people to buy cars again, and this is not going to happen overnight. There’s nothing wrong with being seen as astute, but we need to communicate this to those buyers wavering on a purchase decision. While in the middle of a recession people will be looking for ways to bring their motoring costs down, for some, changing cars could actually be the key to saving major pounds in the long run. And that change doesn’t have to be to a small family car, with low CO2 emissions. Some of the values for bigger 4x4 and SUVs are now so low the savings on the purchase far outstrip the running and tax costs. But it’s up to dealers to get the message out there. The industry-wide calls for the government to adopt a scrappage scheme (see p22), in line with those successfully in place in Europe, provide us with a glimmer of hope for new and nearly new sales. A sensible and effective proposal could be what the industry needs. In the meantime, we’ve got to face facts. Although there are some opportunities for dealers, the bottom line is we’ve got a long rocky road ahead of us before we start to see any signs of economic recovery.

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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Motorpoint survey ﬁnds buyers want Scrap Scheme Now

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Tew Net gains Scrappage scheme means buyers will want to go green

This story was broken ﬁrst at CarDealerMag.co.uk – Updated daily

pring is coming… and I’m not going to join the masses by telling you to do a spring clean of your site. No, you should be doing a green clean instead! CO2 is already a vital parameter for car buyers, and it’s only going to increase in importance. That’s because both the new Road Fund Licence system and possible scrappage scheme will be determined by a car’s CO2 ratings. Smaller, greener cars are to get cheaper road tax from this April’s Budget, while the expectation is that the scrappage scheme will be imposed on cars emitting below a threshold CO2 level. It’s therefore time to look at the search facilities on your website. Specifically, whether you let users ‘Does your identify CO2. Does your site allow car buyers to easily website allow find the eligible cars you car buyers to have in stock? Such smaller easily find the -engined cars are going to be highly sought after, cars eligible and all these new changes for scrappage present a very interesting schemes and opportunity for savvy dealers to steal a march on lower tax?’ the opposition. That’s because with the scrappage scheme in particular, it’s going to make cheaper, greener cars very compelling indeed. With £2k off a £7k car, plus some further assistance from your finance calculators, plus any other discounts you can offer, a new car is suddenly very compelling indeed. Those dealers who are fastest to market in promoting these bargains – and proving to interested customers that they really CAN afford a new car – will win themselves a very real competitive advantage indeed. The government is going to act fast on these schemes. Car dealers therefore need to make sure their systems are up to speed and will be able to react fast to any changes that are announced. Dealers should be checking they have the required enhanced search facilities in place. Now, I’m a fine one to talk about emissions. I haven’t really considered it up to now. So I did a search, and found that my CO2 emissions are 270g/km, which places me in the top band for road tax. This means it’s not going to be a few hundred pounds I’ll be paying for road tax, but over £400! And if I’m surprised, you can be sure your customers are going to be, too. Your website is where potential buyers will want answers. So are you showing them they CAN afford a smart, green new car while providing them with all the information they need? You should be.

What do you think of the GM saga? Text us your thoughts to 82085, starting your message with the word DEALER. Texts cost your standard rate.

James Tew is managing director of Codeweavers. Learn more about how he can help you at www.codeweavers.net or call 0870 443 0888.

As we launch our Scrap Scheme now campaign, dealer group Motorpoint ﬁnds car buyers support the initiative MOTORPOINT has surveyed car buyers, and found the vast majority support a new car scrappage incentive scheme. The news comes as Car Dealer launches Scrap Scheme Now – a campaign calling for the government to make an announcement on the proposals before irreparable damage is done to dealers. The car supermarket found that 73 per cent of people want the UK to fall in line with the rest of Europe, and introduce a £2,000 rebate scheme for taking old, dirty cars off the road. Car buyers warmly welcomed the proposals, despite the plans insisting they buy a green new model. The scheme would also cover nearly new cars, up to a year old.

Similar initiatives have been implemented in Germany, France, Italy and Spain – and the German one is responsible for a 20 per cent boost to the new car market. Motorpoint MD David Shelton said: ‘It is clear from the sales figures that new car retailers are suffering, and help is required to kick-start this particular segment of the market. While we support this scheme, it is vital that Lord Mandelson rolls it as soon as possible, as any delay is only likely to create even more doubt among potential buyers over when best to change their car.’ Our Scrap Scheme Now campaign has won backing from many leading industry figures – read all about it in our special report on page 22.

Vauxhall fends off rumours with website VAUXHALL has taken the unusual step of setting up a website aimed at countering ‘myths’ over its future. The company says the GM Europe Facts and Fiction site has been launched to ‘encourage fact-based reporting and informed discussion’. Company chiefs have listed what they believe are some of the more popular myths and answered them with facts. It is in response to uncertainty over the future of GM, GM Europe, Opel and Vauxhall. In taking the innovative step of using

new media to put its argument across, a Vauxhall spokesman hopes the company will counter the ‘misinformation, uninformed opinion, myths and urban legends that we read and hear’.

Who is James Tew?

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Henstock Auction stations Used car market’s suddenly top of the news agenda

ne interesting side-effect of the current economic crisis is the sudden ‘news-worthiness’ of the used car industry. At a time when the housing market has become understandably slow, and every other economic indicator is either in reverse or remains ﬂat, month after month, many sections of the media have alighted on used cars and vans as a barometer of the health of UK plc. In recent weeks, BCA has featured on ITV’s ‘Tonight’ programme, Sky News, BBC South Today, BBC East Midlands, Meridian TV News, Radio 5 Live, numerous local radio programmes, not to mention generating a thick sheaf of cuttings from national newspapers (from The Sun to the FT) and a literal torrent of coverage in the regional press. And the question everyone has wanted answered ‘Many sections is ‘what are used cars of the media worth?’ There has been a sudden realisation, for have alighted example, that used car on used cars prices are rising. There are few if any business sectors and vans as that have seen the price of a barometer the main commodity rise of UK plc.’ in recent months, but the used car market has. Journalists from outside the motor industry are almost disbelieving when you tell them that the price of 4x4s has recovered or that convertible values are climbing, because every other economic indicator seems to be ﬂashing red. So to really make the point, we invite the reporter to an auction at Blackbushe, Belle Vue or Measham, for example, and just let them watch as cars are sold in less than a minute, with hall bidders and online buyers slugging it out (metaphorically, of course) before the hammer comes crashing down. It’s a potent mixture of competition and performance with a hard business edge and can be as entertaining as anything on the big screen. It’s theatre in the round, with a cast of hundreds, where every car can be a star for at least 45 seconds before its time is up and another takes its place in the spotlight. Even seasoned pro’s like the Car Dealer team felt the adrenaline rush when their beloved ‘Bangers4BEN’ Vauxhall Calibra was offered and sold recently. And if the signs are right, then used cars are likely to remain in the news for some time to come. March has been another strong month for average values, so look out for BCA on a TV screen near you soon! Bangers4BEN, p38; Auctions, p58

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.

Renault retailers knock on Kia’s door EXCLUSIVE: Kia chief reveals interest from rival’s network KIA has revealed that as many as 10 Renault dealers have expressed strong interest in dropping their franchises for one from the Korean firm. Renault sales are struggling in the current climate while Kia seems to be weathering the storm reasonably well. ‘There is huge interest in representing Kia,’ said Paul Philpott, managing director of the company in Britain. ‘We are being contacted by lots of dealers who see our marque as the future – especially with all the new products we have coming on board.’ In an exclusive interview with Car Dealer, Philpott stressed that the approaches by disgruntled Renault operations ‘typified the state of the market where many manufacturers are struggling due to the recession’. He added that the Kia brand was changing shape rapidly with a ‘stunning new product range including the radical urban crossover, the Soul’. Kia has 142 dealerships but wants to boost this number to 170 by the end of 2010. Representation is now sought in Altrincham, Bedford, Birmingham, Colchester, Croydon, Guildford, Liverpool, Luton, Northampton, Oxford, Sheffield and Solihull. ‘We have a full presence in Scotland but we are also looking for five to six new dealers in Northern Ireland as well as filling all the open points in England,’ said Philpott, who spent nine years with Ford in sales and marketing before moving to Toyota where he had the same number of years in executive roles. ‘I like to be totally in touch with our head office where we are concentrating heavily

Kia’s UK boss Paul Philpott on the new product range, an innovative marketing programme, a new business strategy push with sales growth at the forefront and, of course, major improvements with the dealer network partnerships,’ he told us. ‘The Renault dealers who have approached us all have lots of experience and strong customer representation records which is what we need to continue our growth in Britain,’ he said. ‘Kia plans a UK increase of three to four per cent in 2009 which is very healthy given the economic downturn. ‘More outlets will ensure this growth but we will only recruit the best in line with the product offerings coming to the market. ‘We are not going to be too ambitious in the light of the motor industry economy just now but we are gunning for growth, more customers, more dealers and better representation of the brand.’ RICHARD GIBBON

Bentley dealers can’t find enough quality used cars BENTLEY dealers are coping in a tough market by turning to the used market – but it may be under threat. A spokesman told Car Dealer that, so far in 2009, Bentley dealers have continued to sell cars. Bentley Manchester alone has sold nearly 50 since the start of the year. But many of these models are used vehicles – and they are so popular that many are finding supplies are running low. ‘We just can’t get enough good used stock to meet demand,’ said the spokesman, who reported the situation was the same for many Bentley dealers across the country. Buyers may lack the confidence to

buy new models, but it is not stopping them taking advantage of the superb deals offered on used stock. The trick now, he said, is to instill the same sort of confidence back into the new market. ‘We can help this along, with incentives such as warranties and How are you ﬁnding the market? Text DEALER then your comments to 82085 Texts cost your normal rate

enhancements. However, the biggest hindrance to new car sales is finance,’ he explained. Put simply, he believes that to get the new car market going again, banks need to start lending! Continental GTC Speed road test, p28

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

w: www.codeweavers.net/yourcarloan e: enquiries@codeweavers.net t: 0870 443 0888 f: 0870 443 0889 CarDealerIss14.indd 15

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dashboard EXCLUSIVE InTERVIEW

We can provide the cash the banks can’t SEAT chief tells Richard Aucock he thinks ﬁnance is key

Rapp Marketing Haven’t got time for the web? Let us look after it for you...

ou’re busy. With things as they are, that’s to be grateful for. And you know how important your business’s web presence is in bringing in customers and keeping the till ringing. The last thing you want, however, is a site that demands endless hours of work to keep it updated. Here’s how Motors.co.uk can help. Our Website Plus service offers all-kicking support. We’ll do a little work on your site, a lot, or even run the whole operation from start to finish. You choose which will work best for you. If you want a brand new look for your site, we can oblige with a wide choice of designs developed in-house by our own team. And, because we’re fully experienced in how best to present cars for sale, you can be confident that the site we provide will do the job... beautifully. It will also be optimised to be searchengine friendly. A good-looking site is nothing unless the stock on it is freshly updated, though. And Motors.co.uk has AutoEdit, an easy to navigate stock inventory system that you can control easily from any computer. Having a good-looking site that you’re in control of is nothing unless you’ve a grip on who’s visiting it. The Motors.co.uk statistics package comes as standard if we provide your site and tells you where in the world your visits are from, which keywords your customers enter into search engines to find you, and how the number of visits you’ve had this month compares with the past. There’s more. As an option, we can send you laminated ‘Silent Salesmen’ sheets for each of the vehicles you’ve added as stock that week. Also, using our Advanced Vehicle Imaging, we can take your photos of stock, sharpen them, blank out number plates or even add your own personalised plates – complete with sales message. Last, but not in any way least, there’s our Brand Showcase – which is our way of ensuring that your cars benefit from the display they deserve when they appear on Motors.co.uk. This ensures that the banner on the pages where they appear advertises your dealership, your logo appears on your car ads and your special offers appear opposite search results. With all of this going on, you can rest easy, knowing that your stock and your website are up-to-date and looking good. But, whatever we do for you – you always remain in charge.

‘A good looking site is nothing unless the stock is freshly updated – and with Motors.co.uk that’s easy.’

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

SEAT MD Peter Wyhinny believes that the strong liquidity of carmaker finance divisions means big gains are to be had. ‘We can be completely adaptable to a customers’ individual needs, in a way that banks are nowadays unable to be – and that’s if banks agree to a loan Seat’s ‘Aero Tonto’ wind-powered car was an April Fool. Fortunately boss Peter Wyhinny is more serious in the first place,’ Wyhinny exclusively told Car Dealer. accommodating, and this usually gets a ‘Credit is there with carmakers. The trick positive response,’ he says. ‘Our trick is is adapting it to the individual customers’ coming up with the deals to draw them needs. Nowadays, it’s far more about what there in the first place.’ we can do to help them.’ Dealers do, however, need to be sensitive. Wyhinny said SEAT was enjoying a strong Some customers won’t go to a car dealer response to its finance offer of small because their bank won’t even consider upfront and monthly payments. ‘Strong RVs on the new Ibiza mean we can offering them a loan – and they fear a car offer it for £179 down, and £179 a month. Customers are responding very strongly to this,’ he told us. ‘But, with this offer, it’s vital that there are no catches, that it’s not a trick. Customers want the deal that’s in the adverts. We can’t afford to trick them.’ Encouraging conversations about dealer finance with customers in the first place is the key, says Wyhinny. ‘Once you get customers into a dealership, it’s easy to be

All change at IM Group IM GROUP – importers of Subaru, Isuzu and Daihatsu – have merged their franchises under new management. Paul Tunnicliffe, previously MD of Daihatsu, will take on the position of MD for Subaru, Daihatsu and Isuzu. He said: ‘This new structure will provide us with an opportunity to streamline our operations.’

Have you seen uplift in ﬁnance? Text DEALER then your comments to 82085 Texts cost your normal rate

dealer would be the same. Car dealers should be conscious of the awkwardness some may feel when discussing their finances, says the SEAT chief. ‘Don’t forget, though, it’s still a productled business. Car dealers shouldn’t focus solely on numbers – remember that people need emotion, too,’ he added.

Fiat rips up the rulebook FIAT reports that ripping up the rulebook for its used car schemes has been a ‘massive success’. The Italian maker says that used car wholesales were up 42 per cent in 2008, as dealers benefitted from the new scheme. It was in response to Fiat having ‘excess used car stock’ going into 2008, remarketing manager Simon Wheeler admits. ‘When I joined the business in February last year, the objective was clear: reduce stocks without damaging values in the market place,’ he explained. The overhaul he imposed has worked, though. ‘Some cars, such as Grande Punto, are now in very short supply – which has, in turn, pushed up residual values in the used car guides. CAP has increased values on 12-18-month-old Fiat Grande Puntos by as much as five per cent from February to March alone this year.’ Fiat’s online remarketing portal was a big part of this success. There has been a four-fold increase in dealers buying from it.

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Blue Rewards launch snaps up new dealers Harrison Specialist Automotive Finance

Buyers are web-savvy, but what about you?

he internet has transformed the way consumers shop. More and more households have internet access and are willing to make all kinds of purchases online. Unfortunately, some motor dealers are yet to embrace its potential. The internet can help retailers to communicate to potential new customers, follow-up on sales leads and ensure staff receive the very latest training. All of which are vital in an economic downturn. Research shows that around 80 per cent of all car buyers check out their purchases via the internet and an increasing number of car buyers get finance before even walking into a showroom. The FLA launched FinancingYourCar. ‘The site provides org.uk in response to this impartial trend. The website provides impartial guidguidance to ance to would-be car would-be car buyers on the range of different finance products buyers on the available in showrooms. range of The FLA hopes consumers visiting the finance available website will have a better in showrooms.’ understanding of which type of finance best matches their needs, so they will have the confidence to talk about finance. The website can also be used by showroom staff when speaking to potential customers. SpecialistAutomotiveFinance.org.uk is the online portal for the FLA’s Specialist Automotive Finance (SAF) initiative. It is also home to the online SAF competence test. E-learning is used extensively throughout the motor industry because it is convenient to use, easy to navigate and does not involve staff being away from the business for days on end. The SAF test shares all of these benefits but has the added perk of being free-of-charge. The SAF test is designed to complement your existing training programmes, not replace them as it will provide a quick overview of your/your employee’s motor finance knowledge and the related regulation. A post-test report will indicate if there are any specific topics where further training is needed. Over the coming weeks the FLA will be revising both websites to ensure dealers and consumers have the very latest motor finance information to hand. The websites will help in what are very tough market conditions. I would welcome any ideas you may have for new features.

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

Richard Aucock reports on success of scheme’s launch THE launch of Blue Rewards is taking the motor trade by storm, reports boss Paul Cleverly. And it’s not only dealers that have been keen to get on board either – so too have even more big brand high-street names, Cleverly excitedly told us. ‘In March alone, we’ve had Debenhams, Dell, Interflora, Pets@Home and Thorntons all join us,’ he said. ‘They’ve come on board to offer incentives to Blue Rewards customers, alongside all the launch partners too.’ This means that Blue Rewards members will be able to earn money off even more High Street brands and companies, in return for spending cash at car dealers. New car purchases, routine servicing, accessories and other consumables all earn points on their scheme, which the customer can redeem with any of the partners listed in the brochure or on the website. And while it’s operated by Cleverly’s company, the scheme is fully branded to each individual dealer. A special in-house design team draws up bespoke materials for each dealer on board, even down to a specific Blue Rewards loyalty cards for customers. It’s this, says Cleverly, that means more and more dealer groups are getting interested. ‘Several big dealer groups – and we’re talking top 10 – are now in advanced talks with us,’ he revealed. ‘I fully expect to

Are you signed up to Blue Rewards yet? make announcements through Car Dealer soon.’ He also said the kick-start promotion – launched in last month’s magazine – is going well, too. This saw Cleverly commit to a £50k cash incentive for car dealers signing up now. So long as dealers register before the end of April, they can still get free set-up design, and a halving of monthly licence fees. Last month, Cleverly told us it was first come, first served – and he’s serving so many the fund is rapidly becoming exhausted! ‘If car dealers want to benefit, they should get in sooner, rather than later,’ he said. With the industry looking for a kickstart from a potential new car scrappage scheme, the final sweetener in clinching the deal could well be, reckons Cleverly, an added incentive to entice customers into showrooms. What better way, he says, than saving as they spend at your showroom…

Citroen signs new web deal with Autotorq.com AUTOMOTIVE web developer Autotorq. com has signed a new three-year contract with Citroen UK. The deal – first established in 2004 – sees Autotorq.com provide the carmaker with cutting-edge dealer and manufacturer web platforms. The web development firm has migrated 260 Citroen dealer websites, the national used car and used van locator to its new platform, and will also come up with a creative redesign for the marque alongside sister company Global Beach. ‘There’s no doubt in my mind that the delivery of our new dealer websites against such a tight and immovable deadline would not have been possible

had it not been for the commitment and ability of the Autotorq.com team,’ said Jules Tilstone, head of digital marketing at Citroën UK.

260

...UK Citroen dealers using Autotorq.com’s software

Autotorq.com’s latest platform will deliver major search engine optimisation enhancements for the carmaker. All UK dealer website pages and used vehicles will now be ranked individually by the search engines and, using Google Analytics, dealers will be able to see which cars and offers are most viewed.

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‘We steer buyers to you!’

Sell cars online at

Sell more cars. Over 2.9 million visitors per month. Track leads. Brand showcase. Link to your website. Content on 100 other websites. Take control. Sell on the worldwide forecourt.

To find out more or to advertise your stock call 0845 265 5502 or email sales@motors.co.uk CarDealerIss14.indd 19

You take the wheel ™

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big mike

I was the Cilla Black for car dealership blind date O

ne of the real skills of this trade is learning the ability to match people with vehicles. Knowing, just by sight, that somebody who walks on to your lot is just the sort of person to go with the Ford/Vauxhall/VW whatever-it-is parked in the left-hand corner of row three is a skill that a chap can only develop over time, and one which once established, tends to lead to complacency. And that’s why, sometimes, you need to be jolted awake, as every customer’s need is different. I’m not saying here that the customer is always right, because in no trade is this ever in the slightest bit true. There are quite a few wrong ’uns out there, and most of them are the ones who are the most adamant they’re right. In fact, the only time the customer is always right is if you’re that smug little nerd that presents Watchdog and takes delight in watching the nation’s nit-picking busybodies pursue compensation over loose cupboard hinges, misbehaving car alarms, duff insurance policies and other things that, in the grand scheme of things, really don’t matter. But I digress. Over the past 30 or 40 years (I count in decades now) I’ve become very proficient at matching people to cars. It’s a skill that I once used as a slogan for my business: ‘A tradition of matching cars and people.’ For several years, I used to bet my junior salesmen a tenner a go that as soon as someone stumbled on to the lot I’d be able to guess which car they’d take an interest in, and the tenner was doubled to a twenty if I could then convince them to buy the thing. Some weeks, it saved me from having to pay commission! Sometimes, it was easy. Young lad, fashionable togs, obviously still living at home with Mum and Dad so able to spend all he earned was a perfect match for a Golf GTi, Fiesta XR2, 306 GTi or MG ZR depending on what year it was. From the 80s right through to the present day, they’re still the easiest customers to spot

Matching punters with cars is a Big Mike trademark, but he did get it wrong once with a Capri buyer... and match, which if nothing else proves my daughter is correct when she says that boys don’t have any imagination. I hope she’s talking about their choice of cars here, and not, ahem, in other departments. It’s true, too, because when I was a youngster my weapon of choice was an Austin 1300GT. Not a hothatch by today’s standards, but certainly the ZR or Saxo of

its day. And I doubt I was dynamite at the other either, if I’m honest, given my lack of success with the ladies. It wasn’t just boys who were lacking in imagination, though. The perfect companion for the imagination-deprived fully-grown man is, was and always has been a mid-range silver BMW. A 3-Series for anyone with a waist up to 36 inches; a 5-Series for the 36-40-inch middle, a 7-Series for the real fat cats or any kind of coupe for the type of gent who, despite years of practice, is still a complete failure with the fairer sex. Ladies who refuse to go grey have always been fond of their MGs. Be it a ‘B’ or an MGF, an open-top with an octagon on the front surely comes as standard with a bottle of peroxide blonde and make-up in the glovebox. And when they age to the extent that excessive peroxide has turned their hair blue, the very same ladies develop a fondness for Metros and Micras with CVT gearboxes, usually finished in metallic gold or beige, or even worse plough all of their savings into a Vauxhall Agila. There are lots of other associations. Excessive gold jewellery and, shall we say, a disinterest in whether or not the vehicle has a tax disc suggests a cash buyer, specialising in 4x4s with good

towing capabilities. Green Hunter wellies and wax jackets suggest a very different type of 4x4 buyer, but with an interest in a very similar type of vehicle. I could go on. But with stereotypes abounding, it’s all too easy to get caught out. This is a lesson I learned the very hard way back in the late 80s, when a dear old thing came hobbling on to the lot and told us she wanted to get rid of her late husband’s Jaguar on the basis that she’d always hated automatics, and replace it with something ‘a little smaller, and with a manual gearbox’. Unbeknown to me, the Jaguar in question wasn’t, as I suspected, a nice metallic burgundy XJ6, but a bright red XJ-S 5.3 V12, complete with Walkinshaw bodykit, twin headlamps and a supercharger conversion. So it’s no surprise that she was rather aghast when I steered her across the lot to a silver Volvo 340. Luckily, she saw the funny side of my presumptuousness and after beating me with her stick a few times, she chopped in the Jag and paid the balance in cash for a Ford Capri 2.8 Injection Special. I’d have loved to have known her when she was a bit younger…! 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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Take the wheel and shift enquiries up a gear.

Sell online at

You take the wheel ™

How can motors.co.uk steer car buyers to your dealership? An estimated 4.9 million car buyers in Britain are using the internet to find their next car. Question is, how can dealers hope to find them? A dealer’s website with wellphotographed, up-to-date stock, will help sell cars, but the large majority of buyers are unlikely to view it. The answer is simple. Load your vehicles on to motors.co.uk and they will be automatically displayed on 100 websites including: • motors.co.uk • Mail Online • Yahoo! Cars • Teletext cars • Carsource • Orange.co.uk • Kelkoo

• The Independent • Desperate Seller • The Sun • Fifth Gear • Cars By Mail • Channel 4 • ‘This is’ sites

The top 10 dealer groups advertise on motors.co.uk – so isn’t it time you thought about joining them? Here we answer some questions you may have about motors.co.uk.

1. Can I afford to advertise all my stock? Yes. Incredibly reasonable rates mean you can advertise across the motors.co.uk network for an entire month for less than some other sites charge to advertise for a week. 2. Will my stock be on popular sites where the crowds are? Definitely. The motors.co.uk network has 2.9 million visitors per month and is backed by the Daily Mail General Trust, so it has national coverage and local strength in Northcliffe regions. 3. What is the quality of the audience on motors.co.uk sites? High. Targeted online marketing and heavy print advertising campaigns enable motors.co.uk to deliver a more affluent, mature car-buying audience. 4. Okay, so it shifts cars, but will it build my brand? Yes it will. Motors.co.uk offers you a bespoke page which reflects your whole business as well as our core business: delivering sales enquiries. You can also promote your brand, alongside your manufacturer, in your area with our ‘Brand Showcase’.

5. Can I track leads? Yes, and easily. Our tracking system tracks phone calls, email leads, visitors and instant messages. 6. Is there any I.T. hassle setting it up? No. Motors.co.uk takes stock feeds in almost any format from your DMS or aggregator such as, Trader Desk, AutoEdit or Dealer Edit. We can even arrange for photos to be taken for you. 7. Will it shift sticky and ‘speccy’ stock? No problem. We can reduce the price instantly to shift cars before they go over age. We also show the full spec including options of every car. 8. Can you show me the return on my investment? Of course. Because motors.co.uk tracks your enquiries, it’s simple to work out how much each lead costs. 9. But will it drive visitors to my website? Absolutely. From motors.co.uk and across our network you’ve the option of a link from our website to yours. Also, you can buy car to car clicks which take people directly to the car on your website. 10. Surely I need to advertise at more than one place online? Dead right. Your stock won’t just be listed on motors.co.uk, we’ll also promote it on Yahoo! Cars, Carsource.co.uk, Carsbymail.co.uk, Teletextcars.co.uk, Fifthgear.co.uk, Desperateseller.co.uk, the ‘This Is’ sites, The Independent, Kelkoo, Channel 4, The Sun, Orange.co.uk and the Mail Online.

Sell more cars. Over 2.9 million visitors per month. Track leads. Brand showcase.

Link to your website. Content on 100 other websites. Take control. Sell on the worldwide forecourt.

To find out more or to advertise your stock call 0845 265 5502 or email sales@motors.co.uk CarDealerIss14.indd 21

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campaign Car Dealer believes the government should introduce a scrappage scheme to help the UK’s struggling car dealers. Join us as we start a campaign to turn the plan into a reality...

SCRAP TO THE FUTURE C

ar Dealer has launched Scrap Scheme Now – a campaign that calls for urgent action from the government. We believe every day the government delays an announcement on a scrappage scheme dealers up and down the country are being stung. We believe a scrappage scheme would be the right catalyst to get the markets moving again – but by delaying an decision until the Budget, the government is damaging the car industry. The scheme, which would see owners of cars over nine years of age offered a £2,000 sweetner to buy a greener, new model, has already proved a success in Europe. In Germany, dealers are having to turn away customers because of a lack of small car stock. Whether the scheme is the right thing or not to

get the market moving is immaterial as what’s hurting dealers is the not knowing. Every day a decision is delayed the more motorists hold off buying in the hope it’s just around the corner. Critics say the scheme wouldn’t boost the UK industry as some hope because the small cars the £2k carrot will be offered on are not made in the UK. But that’s missing the point – the fact is it would help dealers like you, and those you directly employ. Our Scrap Scheme Now campaign has won backing from a huge number of industry chiefs. Both the SMMT and RMIF have been actively promoting the policy to the government – and their chiefs have written exclusive blogs for Car Dealer supporting our call. Dealers – both franchised and independent – have backed the campaign too, and they’ve

been joined by car manufacturer bosses and other industry experts. An announcement on the scheme is likely to be the jewel in Chancellor Alistair Darling’s crown on April 22 – which we’ll be covering live at CarDealer Mag.co.uk – so don’t expect any news soon. We asked Business Secretary Peter Mandelson’s office, the Department for Business, Enterprise & Regulatory Reform, for comment and a spokesman confirmed they are looking at plans for a vehicle scrappage scheme. ‘Car scrappage is something that we are looking at in depth,’ said the BERR spokesperson. ‘No decision has yet been made on whether or not to do a scrappage scheme. The economic crisis has caused difficulties for many sectors, and we are taking action on many fronts. ‘This is one of the mechanisms that we might or might not use. We need to look at the costs, and the consequences. We have to study all these aspects carefully.’ A typically vague response that leaves dealers, and consumers, with no clearer picture. To ramp up the pressure on the policy makers at Whitehall, Car Dealer offered a number of contacts the chance to write a guest blog on the subject at CarDealerMag.co.uk. Here is just a snippet of what some of them said – to read them in full visit our website and search for ‘scrappage’.

Paul Everitt, chief executive, SMMT ‘The SMMT forecasts that 1.72m new cars and 207,000 light commercial vehicles will be registered in 2009. This is 20 per cent down on 2008 levels and more than 700,000 units less than in 2007. Scrappage schemes are already running in many of the major European markets with the scheme in Germany having the most direct and encouraging impact. In February, the first full month of the scheme, registrations rose by 21.5 per cent and resulted in a number of vehicle manufacturers reversing planned cutbacks. This compares to a further fall in registrations in the UK. A UK scrappage scheme would bring muchneeded relief to the motor industry and all the

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Q&A There’s a lot of uncertainty around the proposed scrappage scheme. Car Dealer has quizzed a number of sources and this is what’s likely to happen... What is it? A cash incentive scheme. Buyers of new cars would get a cash rebate against the purchase of a new model, if they scrapped their old one. Who’s doing it? Austria, France, Germany, Greece, Italy, Portugal, Romania and Spain. In general, up to 2,500 Euros are offered against the purchase of a ‘green’ new car, if one older than 10 years is scrapped. Has it been successful? New car sales in Germany rose by 21 per cent in February. Similar successes have been seen in other European countries, too. Here, the SMMT says it could add 250,000 sales in an 18-month period.

businesses that rely on it. Such a scheme will also deliver significant environmental benefits. There are concerns that a scrappage scheme might benefit foreign factories. But demand stimulated by a scrappage scheme will help sustain jobs in all parts of our industry: design, development, manufacture and retail.’

Sue Robinson, director, Retail Motor Industry Federation ‘A catalyst is required to kick-start consumer confidence, and revive new car sales in the UK. The RMIF believes that a vehicle scrappage policy will have the dual benefit of reviving the new car market, while also removing older, high-polluting cars from the road at the same time. This could be a good move for the UK. Scrappage policies have been successfully adopted by a number of European countries in the past few years, including Ireland, France, Germany, and Spain and we believe that adopting the policy could help move the economy in the right direction. The government must declare their intentions as soon as possible if scrappage is to be adopted.’

Paul Williams, managing director, Koelliker UK (SsangYong importer) ‘It’s rumoured that Alistair Darling might use the announcement of a scrappage scheme to add a bit of interest and lustre to what will otherwise surely be a grim Budget. If that’s the case, why wait? The Chancellor must be scrabbling for anything even half encouraging, but it doesn’t help the auto industry. In the past I’ve suggested many times that people only come to car showrooms if they are genuinely interested – or they’re lost. Now it’s truer than ever. If there’s even a remote possibility of being able to take advantage of a few grand to chop in my nine or 10 year-old car for a new one, why wouldn’t I hold out to see what’s on offer? Uncertainty puts people off making a purchase decision, and the dithering of the government must be causing people to sit tight. The government – Brown, Mandelson and Darling – should stop grandstanding and get on with it – now!’

Peter Isted, managing director, Lifestyle Europe ‘The scrappage scheme would stimulate overall consumer demand and bring back some amount of confidence to a public largely too nervous to make any form of sizeable investment right now. The great thing about the scheme is that it’s much broader in its benefit than manufacturer aimed finance. Not only does the car buyer make a significant saving on the purchase and get to own a much less polluting car with all the associated savings but RMIF figures suggest that the scheme would be self-funding for the government, based on VAT receipts. Plus, the good news from the dealer’s point of view is that the scrappage scheme is proven to have a positive effect. You only have to look at sales figures from Germany to see how influential it’s been.’

Kevin Gaskell, chairman, Motoring.co.uk ‘I am in full support of Car Dealer Magazine’s Scrap Scheme Now campaign. The scrappage scheme will promote activity in the motoring industry which is essential in the current climate to prevent further job losses. The worst thing the Government can do is not make a decision on this. A no decision would result in a slow-down in sales as consumers wait for the implementation of the scheme.’

David Shelton, managing director, Motorpoint ‘Last month we did a survey of motorists to gauge their support for the proposed car scrappage system. Not surprisingly, the overwhelming majority supported it. Car retailing is going through a torrid time of late, and with a few exceptions such as Motorpoint, it doesn’t show much sign of turning around in the near future. The issue, as always with government, is when will the scheme happen? We’ve been flooded with calls from customers asking about the grant and how they go about applying for it. When we tell them the scheme is still at the idea’s stage, the response is invariably the same: “We’ll wait then until a decision is made one way or another.” Confusion, it seems, reigns supreme.’

What’s this green element? Cars will have to emit below a certain target CO2 emissions figure. Car Dealer Magazine reckons it would probably be 140g/km, though the government could be bold and say it would be 120g/km. Which cars would it incentivise? Smaller, more economical cars, such as Ford Fiestas and Renault Clios. Such is the demand for superminis, Renault’s actually just had to boost Clio production by 10 per cent. Ford’s Fiesta factory is working flat-out, too. 88 per cent of people surveyed said they’d use it to buy a car costing up to £10k. Is it popular with customers? A recent SMMT survey showed that 61 per cent of people would like to take up the offer. More generally, two-thirds of respondents agreed with the idea of taking old cars off the road and incentivising their replacement with green new ones. How would it work? Customers would take their car to an official vehicle dismantler, and get a scrappage certificate to confirm the vehicle has been ecologically taken off the road. Would it just be new cars? No. The scheme would extend to nearly-new cars too, probably up to a year or 18 months old, which also came in under a key CO2 figure. The scheme would also include LCVs. How much would it cost me? It would cost you nothing. The government would finance the rebate, and handle this separately from any transactions you made. This means you could still incentivise sales to customers, thus offering them independent savings, too. The government would recoup the money of the scheme in increased VAT returns. What do you think of the scheme? Has the delay caused irreparable damage? Or is it a good thing no matter how long it takes to introduce? Let us know. You can post your comments on any of the stories on our website or send us a text. Text DEALER then your message to 82085. Texts cost your usual rate.

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forecourt Audi has raided the Lamborghini factory and stolen the Gallardo’s V10 for its R8. Has it made the supercar even better? Dan Trent finds out

supercar without the super-salaried baggage? That’ll be the Audi R8. A car gaining a reputation for being the thinking man’s hypermotor. It’s driven by Premiership footballers with degrees. Company MDs who know the name of the tea lady. Nice sorts, in other words. Problem is, until now, it’s not been quite super enough. Audi’s delicious 4.2-litre V8 is some engine, undoubtedly. But in the rarefied stratosphere of £100k cars – dominated by Lamborghinis, Ferraris and AMG Mercs – the R8 has up to now been a bit, well, inexpen-

sive. Bizarre argument to be having in a credit crunch, but the super rich play by different rules. That’s all sorted now, though. Audi’s launched a faster R8. With more cylinders. More power. And for more money. Enter the R8 V10. The Italian supercar without the temperament. We say ‘Italian’ for good reason. For what, deep down, is the R8 linked to? Why, the Lamborghini Gallardo, of course. It’s actually got more differences to the Lambo than even the cynics first believed, but the genealogy is there for all your service staff to see. Until now, the V8’s been Audi-bespoke. We’ve

also seen the mighty V12 TDI previewed, which will be another Audi-only model. But the V10? It’s that one out of the A8 and RS6. Yes, the very same 525bhp motor. It’s different though, let’s get that straight right away. But we could only do this once we’d overcome the sheer impact it made. This car, you see, has it all. Epic noise, incredible tractability, huge charisma and, of course, power. Okay, it’s mainly power – 525bhp, delivered at a piercing 8,700rpm howl. That’s a whole 105 brake more than the V8 version. It’s a naturally aspirated screamer in the

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true supercar mould. But, in the Audi tradition of sensible Germanic efficiency, there’s also tons of low-down torque to grunt you out of corners without hysterics. It’s delectable. Pulling hard in any gear and simply getting stronger and more thrilling the closer you get to the redline. It’s smooth too, spinning with inertia-free keenness and a distinctive tone reminiscent of old V10 F1 cars. The 62mph dash takes 3.9secs – and double that in 12.3secs. Differences to the Italians emerge in the way it drives, too. Never has true supercar pace been so accessible and usable. The R8 manages to feel both usable AND dramatic. The steering alone deserves a prize. Firmly weighted but never heavy, it’s fast, direct and rich in detail without ever feeling twitchy or nervous. The ride is perfectly judged too, with adjustable dampers (a £1,320 option on the V8) composed yet

compliant, even in Sports mode. Then there’s the quattro chassis that lets you lean hard on the power in any weather. It succeeds in making supercar novices feel like heroes without dumbing down the experience for more accomplished drivers. The cabin is suitably spec’d up too, with much of what’s optional on the V8 coming as standard here. So the cabin feels worthy of the hundredgrand price tag. It’s a comfortable, user-friendly

cockpit, though lacking practicality compared with the nominally two-plus-two 911. Special note to the headlights though. It’s the first production car ever with all-LED beams, the twinkly diodes now more than a mere styling feature. It’s fantastic, this Audi. The R8 V10 is much more than a cut-price Gallardo. It offers the perfect compromise between Porsche’s clinical efficiency and the fantasy of Lamborghinis. In short, we love it. [CD]

Audi R8 V10 Price: £99,575 Engine: 5.2-litre V10 Power: 525bhp, 530Nm 0-60mph: 3.9s Max: 196mph Ins: Group 20

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imes change. Porsche, for example, went to the brink of bankruptcy during the last, post-80s boom recession. Yet in this current crisis it’s one of the most powerful car companies in the world – a controlling interest in the Volkswagen Group giving the German manufacturer influence far beyond the performance realm. Porsche knows you have to adapt to survive. Hence the Cayenne in general, and now this, the Cayenne Diesel. A car Stuttgart bosses spent years saying they would never build. But when customers start clamouring, and premium SUV sales turn 86 per cent derv, as they did in the UK last year, past declarations quickly become immaterial. From go code to reality, creating this car took just 18 months. An abrupt about-face, made possible because the Cayenne is essentially the same as VW’s Touareg underneath, and handily the VW already deploys a suitably chunky 3.0-litre V6 TDI. Not the first time Porsche has borrowed a VW engine – and probably not the last. It says its engineers have made their own modifications, but damned if we can see much difference in the data. Power and torque remain identical at 237bhp and 550Nm, 0-62mph takes 8.3 seconds in both cars, and both use a variable geometry turbo. Even the 30.4mpg average and 244g/km CO2 figures are the same. The Porsche can, however, haul itself to 133mph, while the Touareg staggers to ‘just’ 127mph. Irrelevant unless you’re a regular on derestricted German autobahn. So, big deal.

It’s the engine they said they’d never make – so they didn’t. Instead, Porsche’s first diesel engine comes from VW The real distinction is on the road. The diesel, like every other Cayenne, dispatches twisting Tarmac with disdain. There’s understeer if you’re clumsy, but keep things measured and it’s got all the B-road pace you could realistically wish for, accurate steering, and tenacious four-wheel drive grip. The standard six-speed automatic gearbox does a decent job of coping with it all – slightly slow-witted reactions in manual mode aside. The brakes could bite harder, but they have excellent feel. While our test car’s fine balance of ride quality and body control suggests the optional Porsche Active Suspension Management is £1,931 well invested. The Cayenne is even highly capable offroad. Not that many owners will chance the paintwork trying. But is it better than a dieselpowered BMW X5?

Well yes, and no. Starting at £40,815, the X5 will cost you more than a stock Cayenne Diesel, but drinks less, accelerates faster, and at 214g/ km emits far lower levels of CO2. The handling isn’t far off, either. You just can’t ignore the allure of that Porsche badge – expect current BMW and Mercedes SUV drivers to swamp Porsche showrooms in their droves. It may also prove curtains for the entry-level petrol Cayenne. The diesel is not only massively more efficient – the base 3.6-litre V6 petrol only averages 21.9mpg – it costs just £881 extra once you factor in the automatic transmission. A no-brainer, then, really. The advent of the first diesel Porsche production model since some air-cooled tractors in the 1930s does not, however, mean we’ll ever see a diesel 911. Times change – but not that much. Or so they say, for now…

Cayenne Diesel £40,815

BLACKMAGiC

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forecourt Bentley dealers aren’t having the easiest of times in the crunch – so is a new 600bhp, £146k drop-top what they need? Richard Aucock finds out

entley dealers. They’re selling loads of used cars. The problem is the new side. What they need is something to get the confidence going. How about, then, a 200mph convertible? With 600bhp? That does 60mph in 4.5 seconds? And, with 750Nm of torque, has enough grunt to pull a whole housing estate down? That should do nicely, thanks… It’s not lunacy, either. Despite the recession, Speed variants of the GT Coupe and Flying Spur have easily dominated sales of their respective ranges. The logical extension of this policy is to bring it to

the drop-top four-seat GTC range. Bentley’s timed this to coincide with a minor facelift for the GTC. This introduces a more upright radiator grille, subtle alterations to the front end – plus bespoke additions to differentiate the Speed. These include mammoth 20-inch alloy wheels (which can optionally house the largest production car brakes in the world), a rear boot spoiler, moody dark matrix for the front grille and twin bulging exhausts. Airflow at the front is improved too, with bigger intakes, which means it needs more space to exit, as well…

Inside, there’s the de rigueur diamond-quilted leather, special knurled aluminium embellishments, and a much nicer three-spoke steering wheel. The car’s lower, the suspension’s firmer, ESP stability system is more lenient and the gearchange settings sharpened. Job done, for the most dramatic four-seat convertible in the world? Well, it’s certainly not short of drama, that’s for sure. You can’t quite do 200mph with the roof down. There, it’s limited to a mere 195mph. As if that’s any more sensible. By that stage, hats/ toupees will have been long flung down the

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road. For this thing is fast. Yeah, pretty obvious, that. It’s even called ‘Speed’, for heaven’s sake. What’s less obvious is how it deploys this power: with total accomplishment, utter confidence, freedom from drama and the kind of feeling of complete power that dictators thrive on. Sportscars feel fast, race cars feel dramatic. The Bentley? It’s plain thrusting. There’s no other way of describing the sheer thrill of pressing the aluminium right pedal, being buried into your seat, and rocketing forward to three-figure speeds. There’s no real drama from the car, it just flashes forward – whatever the weather, whichever way the car is pointing. It’s mighty. That’s four-wheel traction for you. Which, with the light, accurate, pin-sharp steering, fluid damping and taut yet nevertheless sup-

ple ride, makes it all seem a bit too easy. Grip from the 20-inch tyres is total (only a feeling of nose-heavy understeer near the limit belies this car’s 2.5-tonne weight), and general agility in corners makes a mockery of convention. To really appreciate the sheer forces at work here, you need to fold that beautifully finished roof. Just 25 seconds later, you’re fully connected with the roars that go with the thrust (and the thirst). Two bellowing exhausts which are more tune-

ful than a saxophonist on speed, plush a general bellow of engine ingesting air that leaves you in no doubt as to where all the fuel is going. Silent inside, the Bentley Speed is truly a warrior from outside – and it’s the GTC’s ability to showcase this to the 2+2 passengers savouring the delicious, even-more-customisable-for-2010 interior that really makes it special. It’s the ideal car for Bentley dealers – and not just because it’s arriving just in time for summer. [CD]

Continental GTC Speed Price: £146,100 Engine: 6.0-litre W12 twin turbo Power: 600bhp, 750Nm 0-60mph: 4.5s Max: 195mph Ins: Group 20

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cult cars e it. m a t ’t uldn e... o c r ea am op G hall of f T m rs fro Stig Cult Ca e h T ur even enter o d n ell a X to n sp segg CC a c e o-on e Koenig n e th am t a n ugh for o g s o n It’ on e s a e R

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t is most famous for being the car The Stig developed. Remember the Koenigsegg’s first attempt at lapping the Top Gear test track? It ended in an ignominious spin, as the hypercar proved just too hyper for the reclusive racer. ‘Fit a rear wing,’ he said. ‘Then, it’ll be the fastest ever round here.’ Koenigsegg did. It was. But then, what else would you expect from a car boasting a claimed 245mph top speed? Sorry, that’s 245mph ‘plus’. Well, if you’re gonna be bonkers, best be totally bonkers. Such are the dazzling numbers of the mental CCX, a car built specially to commemorate Koenigsegg’s first CC edition back in 1996. The CCX marked its foray worldwide, into

markets previously unexplored, such as the US. This meant a redesign, to make it safer and more secure. It also demanded a cleaner engine – so, instead of using a much-modified old Ford V8, the Swedish company designed its own, and got a British company that casts blocks for Formula 1 engines to make it. The result is a 4.7-litre V8, with two superchargers, and some stupefying figures. How about 806bhp? Which means it does 0-62mph in 3.2 seconds? And, 0-124mph in less than 10 seconds? This car is fast – so fast, it gets from 0-124mph and back to zero again in just 14 seconds. This is why the traction control is F1-grade. This is why the brake discs have eight-pot calipers. This is why, at 155mph, it can generate a mighty 100kg of downforce from aerodynamics alone. To put this into context, the carbonfibre Koenigsegg in its entirety only weighs 1,280kg… The two-door targa model is sensational. Everyone who drives it says they’re daunted by it, such is the ferocity – but get used to the physical and intense experience it generates, and there’s nothing else like it.

There are no fancy aids here (even a paddle-shift gearbox is optional, rather than a substitute for the standard six-speed manual) and everything about it demands total concentration. That’s probably why The Stig got caught out. But still, there’s some who say the standard car’s not fast enough. For such types, Koenigsegg has an answer. The even more powerful CCX Edition, a 4.8-litre version of the mighty CCX, with a no-we’re-not-lying 888bhp being flung to the rear wheels. Awesome does not begin to describe it. Nor does the fact that, despite all this, and despite (actually pretty decent) fuel economy of 16.6mpg, Koenigsegg also shows its Swedish eco heritage by offering a ‘green’ CCX. The CCXR is biofuel compliant, and has a much lower cumulative CO2 effect. This makes it about as green as the average big saloon car, which for one of the genuinely fastest cars in the world, really is going some. Oh, and another feather in the CCXR’s cap is that it’s said to produce 25 per cent more power than the standard one… The Koenigsegg is not cheap. It’s not easy to buy. It’s not easy to drive. But, master all of this, and you really do have one of the quickest and most capable things on the planet. Not many machines carry more mystique than the mysterious Stig. Never mind being a Cult Car, the CCX is masterful enough to start a cult all on its own…

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forecourt

HARD Top TO

t’s a direct line from customers to BMW engineering staff that has led to the new Z4 being how it is. See, BMW engineers are sporty types. The sort who turn DSC off. They like their hard-riding, focused machines – cars such as, ooh, the original Z4. Particularly ones with high-output straight-six engines. Customers, however, were less keen. Roll-free dynamism is one thing, but when it leads to such a bumpy ride quality, then it’s less acceptable. Alongside a TT or Nissan 350Z, the original Z4 was plain, well, stiff. It is this that has been addressed with the new Z4. BMW admits that one of its design priorities was to improve comfort and refinement of the machine. And this, indirectly, led to another major change. The introduction of a folding hard-top roof. It’s there with the aim of giving ‘best of both worlds’ motoring. Roof-down enjoyment when the weather’s good, but the security and refinement of a hard-top when it’s bucketing it down. The trick is, of course, to make it look good. Bulky old things, roofs. As car such as the old Peugeot 307 CC prove, squeezing them in isn’t always easy… BMW’s managed it, though. Chief designer Juliene Blasi has done a cracking job of getting the rear deck look, and it still lowers in a flash-like 20 seconds. The only challenge for BMW dealers is explaining why, when the roof’s down, accessing the boot is such a tortuous process… Style wise, the all-new Z4 is closely aligned with the original. It is, however, bigger all round, which if anything has helped balance and improve the looks. The nose, in particular, is full of character, and the 6 Series rear is cool. Inside, too, it’s much, much better quality – we particularly like the 7 Series style centre console, the new iDrive system, the easier access and the

It’s back with a 6 Series style boot, folding metal roof and a little less ‘focus’. Richard Aucock tries the new Z4 out improved refinement. Now, with all this talk of accessibility, you’re thinking the Z4 has gone soft. Fear not. Because what we liked above all on the launch was the mighty new engine of the sDrive35i test car. This is the 306bhp range topper, that hits 62mph in 5.2 seconds, and has a stellar 400Nm of torque. Two turbos ensure this is spread right across the rev range, and on the road, it provides simply searing shove. Seriously, this is one extremely fast and responsive car. It’s anything but ‘hairdresser’. Roof down it also sounds terrific, particularly with the test car’s optional DCT dual clutch gearbox: gearshifts happen in the blink of an eye, and elicit the most wonderful rasp from the twin exhausts. Such response means you have confidence to get on the power early and indulge in some tail-out fun. BMW helps you here, by offering a must-have option: Adaptive M Suspension. This is a £930 electronic setup, which offers three modes of comfort. The ‘Comfort’ setting addresses every single

ride quality criticism of the old car. Sport is more dynamic – and Sport +? Well, it’s even sportier than the original – and also turns off the traction control. And, so well balanced is the rear-drive roadster, so confident is the handling, it means you have supreme confidence to get on it early and really hoon. BMW’s given us the best of both worlds here. It’s appreciably sportier than a TT, yet not as intimidating as a Porsche Boxster. The ideal half-way house. Indeed, something perfectly illustrated by the best-of-both-worlds roof… Despite this, and the all-round improvements, and the more customer-friendly but no less rewarding drive, the maker isn’t imposing big price increases. The range starts at £28k for the sDrive23i, with the sDrive30i costing £33k, and this sDrive35i range-topper adding £4,400, a heap of extra kit and that wonderful, mighty engine. All can do more than 30mpg, and two of them emit less than 200g/km of CO2. Yet more reasons why customers, 3,500 of them a year, should love it.

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ITALY

Little

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Fiat’s 500 has already taken a chunk out of MINI sales, now Abarth wants a slice of the action...

he’s posh, likes shopping, lunching with friends and is climbing the social ladder. No, I’m not talking about Cheryl Cole (for once), this time it’s Miss Minnie Bya who has caught my attention – and she’s in a bit of a dilemma. You see, a few years ago if Miss Bya’s husband/dad/secret lover wanted to buy her a runabout to pop to Sloane Square in, there was only one car that would fit the bill: a MINI. With its cute, perfectly formed dimensions and bigger-than-it-looks interior, the car was fun to drive and above all oozed quality. But then along came a new take on the retro-car theme – the Fiat 500 – and the ladieswho-lunched had problems. Not only did they have to choose which shoes and handbag worked well together, but they now had to pick between an Italian and German (and I’m not talking footballers to have an affair with). And this is my point – it’s not really a choice is it? Milan or Berlin? Exactly. So the march up the sales chart for the Fiat 500 began – and it’s been eating into MINI sales ever since. You’ve got to hand it to the Italian brand, they’ve done a brilliant job reinventing the iconic classic and, in these crunchy credit times, the fact it costs a few bob less means Miss Bya can afford a few more trips to The Ivy. One thing has been lacking from the 500 range, though – a proper rival to the sporty Cooper. A breathed-on version that the man of the house wouldn’t feel ashamed stepping out of his Aston into. Fortunately for Fiat, the firm can go one better than its German rivals here by not just adding a new model to the range, but launching the fiery 500 under a completely separate brand – Abarth. And they’ve done a great job. Under the bonnet of the ‘standard’ Abarth version is a 1.4-litre 16v turbo-charged unit, producing an impressive 135bhp and 206Nm of torque. That’s enough to propel the 500 to 60mph in just 7.9 seconds. On the road it is superb to drive. Punching well above its weight, it fires you out of corners with the drive of cars twice its size. There’s no lag to speak of as the

turbo spools up and the sound from under the bonnet – and those twin rear exhausts – is an aural masterpiece. It’s the handling that really impresses though. The Abarth engineers have fitted a clever torque transfer control system that replicates a limited slip differential. If it senses a wheel is losing traction it applies a brake to that corner rather than cutting power, and this makes a huge difference to the car’s dynamics. You really can feel the system working, especially if you get the chance to try the car out on a closed circuit or are really pushing on. Whereas the Abarth 500 is the rival to the Cooper – the maker has an even spicier version taking aim at the Cooper S too. It’s called the Esseessee (pronounced E-sess-A). See it tackle a Hill Climb: Search ‘Abarth 500’ at CarDealerMag.co.uk Now the name might look like a bad typo, but with 160bhp and 230Nm this car’s certainly not a mistake. Costing £2,500 more, it’s around £500 cheaper than its German rival and, I would argue, considerably better. The upgrade comes courtesy of a dealerfit kit – which comes in a Scorpion-branded wooden crate (already quite a collector’s item in itself). Inside is a new air-filter, special wheels, bigger brakes, uprated suspension, and dealers fettle the ECU for more power too. Not only does this improve the car’s handling, but performance increases with the added go – the 60mph benchmark now reached in 7.4 seconds. That might not look like a huge increase for the cash, but you certainly notice the added verve. The only thing I’m not 100 per cent sure on is the sporty 500’s looks – it just feels like the maker has tried a little too hard. With lower side skirts and added performance frippery, I’m not quite convinced Miss Minnie Bya will approve. And you can never underestimate the importance of the posh pound when times are as tough as they are… JAMES BAGGOTT

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Mercedes

sales legends

The car that brought Mercedes to the masses looks as fresh today as it did back in 1983. Richard Aucock tells the story...

he Mercedes 190 was launched as the most affordable Mercedes ever. Which, you must note, is a relative term. It’s like saying Richard Branson is going on an economy drive. He may start to drink own-label tea, but he’s still a gazillionaire who could buy the Moon if he wanted to. So, 1983’s BMW 3 Series rival from Mercedes may have cost less than its other models, but it was no cheapie. Nor was it ever designed to be. Even the engineers at the time said it was ‘massively overengineered’, meaning it truly is a Mercedes like few others. We say this because, like no Merc before or since, it successfully merges modernity with all the bulletproof feel you expect of a Benz. It wowed an early 1980s market with its crisp styling and clean lines – it was a real design trend-setter for the Stuttgart brand, setting a template for all future variants and finally laying to rest the staid style of its past. Experts reckon it’s one of the firm’s best-conceived models ever, a real Bruno Sacco success. He drew it, and clothed a feel-good interior with pretty lines that were only enhanced on later 190E

Plans to make th e 190 fro m Dairy Milk we re unsucc essful

2.3-16 models – the Mercedes Cosworths. Yes, while standard 190s had fairly conventional engines (although the 190E 2.6 six-pot was delectable), a need to go DTM touring car racing saw the brand really go to town with its high performance homologation special. Cosworth breathed on the engine, giving it a 16-valve head and boosting the power to 185bhp. Sounds middling now, but was pretty fearsome back then, especially as it didn’t dent the car’s total reliability one bit. Mercedes proved this by running a fleet of 190E 2.3-16s flat out at a test track. For 50,000km. At an average speed of 154mph. Faults? Not one. Just like all the road cars, in fact. Mercedes dealers loved ‘em from the off, not least because they could now sell a Ford Sierra ‘rival’. Okay, the base cars were hardly fast or well equipped, but for the price of a posh Ford, buyers could now get the luxury of the three-pointed star, for the first time ever. This was unique and really quite compelling. So much so, sales quickly grew – but it wasn’t the poverty spec cars that sold best, much to deal-

ers’ delight. Rather, the extra affordability of the model meant many indulged, choosing decent-spec 2.0-litre variants or, in even more encouraging numbers, the 2.5-litre variant. Mind you, this car really was lovely. Famed motoring writer LJK Setright said it was one of his favourite cars of all. This did the car’s kudos no harm at all… In short, the 190 was a hit. It helped turn the brand from a low-volume maker into the UK powerhouse it is today – without this, the step to A-Class and B-Class would have been impossible. More than that, there would have been no C-Class, its direct descendent… and every dealer in the land knows just how crucial that one car is to MercedesBenz UK’s fortunes. It was replaced in 1993, after a successful 10-year run that saw more than 1.8m examples built. In that time, Mercedes was virtually transformed, with its success being built on the fine 190. Had it not been as good as it was, the company would be very different today. That it was so able, therefore, means the 190 really does deserve its true sales legend status.

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bangers4BEN

Cashing IN Turns out driving our bangers from Portsmouth to John O’Groats and back was the easy bit. Now we’ve got to sell these sheds and make a profit for automotive charity BEN. Not easy...

his isn’t a game. This is for real. Selling these four cars for BEN is some responsibility – especially as it’s the whole reason we made our mamouth trip. But with four V5s sat in front of me and a sea’s worth of Scottish salt still glistening on the bodywork of our four cars, it’s obvious there’s a lot of work to do. Last month we told you all about how we bought four cars to carry us from Car Dealer’s Portsmouth HQ to the very corner of the British Isles and back again in a three-day adventure. Our budget was £200 a car with the intention of selling them for a tidy profit (okay, just profit) so we could then give the whole lot to BEN, the automotive industry charity. If you missed last month’s instalment the line-up included the following: I managed to use my contacts book to source not one, but two cars. More through luck than negotiation, I was offered a tasty Mondeo ST24 by Lifestyle Europe and a Volvo V40 by independent dealer Motorpoint. Knowing that two cars meant more cash for BEN, I press-ganged younger brother Will to take charge of the Swedish load lugger while I took custody of the slightly-funky smelling ST. Our third challenger was Duncan Chappell – former salesman at Ridgeway Chrysler and Jeep in Portsmouth and now Car Dealer’s new commercial manager. He managed to use his salesman’s silver tongue to sweet talk an eBay seller into letting him have an L-reg Vauxhall Calibra for £250. It was a bit rough round the edges, but had an air of coupe cool. Our final contender was Dan Harris, a Sky fitter by day, eBay addict by night. He managed to do a deal with a friend-of-afriend for an M-reg BMW 318 in rusty green. Despite being rather well used, it scored high in the style stakes especially with that blue and white propeller on the bonnet. As you may know, we completed the trip – including a 12-hour, 600-mile drive back from Inverness on the final day and a number of ‘complications’. And that just about brings you up to speed. So, to the ‘sales meeting’ – just how were we going to shift these shh… lightly older cars? But before we even got a chance to discuss our options for the location of a meeting, let alone how to sell the motors, the phone rings. It’s the Sky Man with good news – of sorts. ‘I’ve sold the Beemer mate,’ he tells me. Ah. That was a bit quick. ‘It’s complicated,’ he says. ‘The friend-of-a-friend I bought it off has a friend who needs a car sharpish and has asked to buy it back for £250.’ More friends than an American sitcom, but I suppose profit is profit, plus it gets one car out of our hair. We investigate the trade value for the condition the 318 is in, and it books at just about that sort of money – especially with its moon-and-back 170k mileage. So we let it sell – one down, three to go. At this point it’s probably worth recapping the rules. In a homage to the legends on Top Gear we decided to award points for various successes and misdemeanours along the

way. It not only alleviated the boredom but also helps us hail a winner. Not that we’re competitive or anything… The points work like this: For every pound spent under £200 one point was gained and for every pound spent over, two were lost. Mechanical assistance lost 500 points, a speeding ticket 1,000 points. But the real points are made at resale time – there’s two on offer for every pound clawed back over £200. So, the standings, at present, are as follows: I bought the Mondeo for £200, so no points there, but lost out due to a puncture which my fellow competitors deemed ‘mechanical assistance’. I argued until I was Chelsea blue in the face, but lost. So I’m staring at a -500 tally. Arse. Will spent £201.75 on the V40 – we’ll round up the 75p meaning he’s on -4 points. Dunc spent, in comparison, a whopping £50 over budget, costing him -100 points. His radiator burst just south of Inverness too, but because we didn’t have to trouble the fifth emergency service and plugged it with a magical Radweld brew, he dodges a points fine. Thinking about it, a breakdown should have constituted a penalty whether it needed help to fix or not, but getting that through the Bangers4BEN committee at this point would

‘With more salt than a service station pasty caked on the side of the old Ford, I set aside a morning to clean it.’ require some major campaigning. Which leaves Dan – who’s got his final score already. He spent exactly £200 on the Beemer, had no problems on route and sold it for £50 profit. Just like his car, rather German and efficient. So he’s 100 points in the black and in a decent lead… MONDEO MAN The day after completing our long haul, Will and I are grabbing a sandwich and a pub acquaintance walks in. We tell him about our journey, in between picking fillings, and think that’s that. But the next day the mobile rings. It’s his son who heard we had some cars to sell asking if he could send a friend round to see the ST. Funny how things work, isn’t it? A bit of telephone tennis later and his mate is due round one Saturday lunchtime. With more salt than a service station pasty caked on the side of the old Ford, I set aside a morning to give it a deep clean. Three hours later, I’ve managed to peel the Bangers4BEN stickers off with the help of a 120psi pressure washer and the ST is looking good. The paintwork on it is superb and with two months’ tax and MOT for four, it’s a tempting purchase. I’ve told him £600 on the phone – a tasty profit for BEN and hopefully a price he can’t refuse. He doesn’t. After a fiveminute test drive with his missus, he’s back and handing over the cash. He didn’t even haggle! >

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Words: James Baggott | Pictures: Owen Buggy and Car Dealer team

Volvo V40 Bought for: £201.75 Year: 96/P-reg Engine: 1.8-litre, 16v Power: 115bhp 0-60mph: 10.5s Top speed: 121mph

Vauxhall Calibra Bought for: £250 Year: 93/L-reg Engine: 2.0-litre, 8v Power: 115bhp 0-60mph: 10s Top speed: 127mph

BMW 318 Ford Mondeo ST24 Bought for: £200 Year: 98/R-reg Engine: 2.5-litre, V6 Power: 170bhp 0-60mph: 8.5s Top speed: 135mph

Bought for: £200 Year: 94/M-reg Engine: 1.8-litre, 16v Power: 138bhp 0-60mph: 10.2s Top speed: 132mph

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bangers4BEN

One of these men bought our Calibra. Don’t ask who. We were too busy celebrating

Shine! jetwash Scotland off V40

How Paul got our V40 so clean is beyond us

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I’m over the moon too. That means, even with the plugged tyre costing me a painful monkey, I’ve posted a plus 300 point score! Beat that boys….

From mountains to mountains of cash? Hardly... but we tried

HAMMER IT OUT With the first two sales passing with such relative ease, we got a little complacent. The Calibra was ‘resting’ at Dunc’s old place of work and I’d grown rather used to having the Volvo knocking about as a second car. In fact I grew so attached to it I took it to the Porsche Cayenne Diesel launch at one of the poshest hotels I’ve ever stayed at. It was rather satisfying turning up in a £200 banger while the other hacks rolled up in their blagged press office test cars... After two weeks, this issue’s deadline began to loom so we needed a fast route to market. Using the trusty contacts book again, I managed to rope in the help of BCA, which waived its fees to sell the Calibra. Dunc and I dropped the Vauxhall off at the huge Blackbushe site a week before it was due through the block so the firm’s preparation department could work its magic. We weren’t expecting miracles – the car had rust on the arches, and most panels were caked in filth. And we won’t mention the coffee stain in the interior (damn those missing cup holders). Tim Naylor, BCA’s PR supremo, had done some research on the old Vauxhall for us too. Turns out it wasn’t the first time it had been under the BCA hammer: It made £6,325 for a car leasing company some 10 years ago with the auction house! A week later we’re back to see the Vauxhall go through. There’s a video of the sale on our website if you’re interested in seeing it. Palms were clammy as we watched the Calibra roll in – would it conk out? Would it drop the contents of its radiator all over the floor? We held our breath. Before the Calibra arrived though, we watched 30-odd cars rumble through, all different ages and makes. An 04-reg Aston Martin DB7 Volante made £31k while, two cars later, an L-reg Renault Scenic sold for £325. The lots couldn’t have been more diverse. The auctioneer gave the Calibra a good sell and tried to start it at £200. No interest. £100. No interest. Things weren’t looking good. Then a hand shot up and things were off. It rapidly rose to £225 and stalled. The auctioneer offered raises in £10 increments and it slowly crept up again. Everyone’s done at £265 and the Calibra sells – amazingly for a profit. Dunc is chuffed to pieces with the £15 and points out that we actually did the trading on this car back to front. ‘It was an exciting end to a lengthy and difficult process,’ says Dunc, in the editors’ blog, at CarDealerMag.co.uk. ‘Buying a car from retail and actually selling it through the trade for a profit must be worth a few extra points in this competition, surely?’ Nice try mate, but no cigar – despite some protesting, Dunc posts the only minus score here with 70 below.

SWEDE SMELL OF SUCCESS? AND so to Wills’ Volvo. Due to work commitments and the fact he agreed to help us out at the last minute, I was drafted in to try and sell this one too. But before I could even begin to think about flogging the estate it needed a clean. A Kim and Aggie clean. Fortunately, I knew just the chaps to do it. Shine! is an expert valeting company that works in conjunction with Halfords to offer some seriously hardcore cleaning. One call to boss Paul Normyle and the rub down for the Volvo was arranged. Senior technician Paul Murdy turned up in one of the firm’s specially modified A-Class Mercedes – complete with ‘VAL 1T’ numberplate. It was packed to the headlining with all the kit he needed to do the job and even came with its own water supply! Four hours – yes, four hours – later the V40 was unrecognisable from the salt-covered motorway muncher it was before he turned up. Paul had made the interior look like new, ridding the V40 of its eau de ditch-water pong to be replaced with a sweet lemon zest. Fruity! Outside was a marvel too. Gone were the Bangers4 BEN.com stickers, and the door that had flat paintwork was sparkling like new. It was incredible stuff. Take a look at Taketheweekendoff.com and treat your own car to their services or perhaps that filthy part ex on your forecourt that your own chamois shufflers are too scared to tackle. If anyone can get it clean, it’s the Shine! guys. With the grime gone I needed to get shot of the car before the local seagulls used it for target practice. Fortunately (for once) I had a plan. A call to Car Dealer’s friends at Paragon Remarketing and boss Peter Davies agrees to enter the V40 in one of the firm’s unique online live auctions – the likes of which we’ve reported extensively on in the past few issues. Davies arranges for his team to collect the car and the date’s set for the sale… two days before deadline for this magazine. At the time, I knew that was a recipe for disaster. I was right. Unfortunately, the Volvo missed its allocated slot and deadlines didn’t allow it to be re-entered in time for this issue. Which means Bangers4BEN is left on somewhat of a ‘douff-douffer’, EastEnders-style finish. With Dunc well and truly out of the picture with his -70 score, Dan posting a respectable plus 100, it’s a two-horse race to the chequered flag – and it all hangs on what the Volvo makes with Paragon. I’ve managed to post a 300 point lead, but if the Volvo sells for £153 over the £201.75 Wills paid for it, he wins with 302 points. Remember, there are two points on offer for every pound over the original stake we sell the car for. Retail value for the V40 is about a grand, so with trade values what they are at the moment The Plumber might just snatch it out of my hands… [CD] Read exclusive blogs and watch a video of the Calibra sale at Bangers4BEN.com

What’s next for Bangers4BEN? You are, if you’re up for it BEN’s director of fundraising, Charles Davies, visited the Car Dealer office at the end of March to pick up a cheque for the cash we’d raised so far. Over a few cups of coffee we decided that once we’ve declared the winner of Bangers4BEN, that shouldn’t be the end of it. But this time we’re going to be doing things slightly differently – we want you to get involved!

We’re asking independent dealers, franchised sites, big dealer groups, manufacturers, trade suppliers and other journalists to get involved. We want you to buy a car for a budget, just like we did, and join us on a drive around the country – culminating in selling the cars at a special auction for BEN. We’re still finalising the details, but if you think it’s something you’d like

to take part in email me at james@ blackballmedia.co.uk and I’ll make sure you’re first to know. Think of it as a fun weekend away or a dealer team building exercise, but with the added competitive element thrown in too. Tune in next month to find out who’s declared winner of our Bangers4BEN challenge and find out more details of how you can get involved in B4B MkII.

CarDealerMag.co.uk | 41 CarDealerIss14.indd 41

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0844 815 8888 tim.marlow@bridford.co.uk CarDealerIss14.indd 42

3/4/09 10:38:42

cultclick cars right

...in association with G-Forces

Unravelling market forces G-Forces’ Tim Smith explains why the pendulum is swinging towards online marketing and shows how you can monitor it

recent newspaper article from a ‘noted’ psychologist declared optimism as the key to professional success in a recession – we’ll fair better if we’re smiling cheerfully. This article was printed in the paper’s science section rather than business and for good reason. Business advice from a psychologist usually found analysing body language on an Orwellian-titled reality-show is not the best advice for a company operating in a recession. Blind optimism is more of a danger than an answer for business. Simply smiling and getting on with it is the equivalent of sticking your head in the sand while loss-making habits continue. What will help companies get through these turbulent times and avoid the red ink being used for their statements is finding what they do best, sticking to it and seeing it through. Take, for example, the high street music stores. One teetering over the edge and one gone before it was time for the January sales. Compare such lacklustre performance to a music shop like Rough Trade who are currently thriving and the ‘find what works best and stick with it’ rule applies. Rough Trade sell only music. You don’t step through the doors only to battle books, emblazoned shirts and MP3 accessories before you get to the music in a supposed music store. While auto dealers aren’t about to start selling box sets of the latest American sitcom on DVD, the need to find what works best and stick with it still applies for success when it comes to marketing your dealership. The importance of web marketing for your automotive website and dealership is well documented and the best way to find success in a recession is to find which marketing campaigns work for you and stick with them. A full understanding of which marketing campaigns are working well for you and which

G-Forces’ LeadBeast product is a great way to find out what marketing works for you and offline tracking, what marketing campaign is working for your dealership becomes clear. All users of LeadBeast have noted significantly lower cost per enquiry is from online marketing compared to offline. It’s still important to note the balance is imperative but there is still too much credence aren’t is vital. There are many good tools availon offline marketing. The pendulum is swinging able to analyse traffic generated from online toward web marketing and will continue to marketing, including Google Analytics and Web- do so until the correct weighting is found for trends, and just as many – Mediahawk or BDM – effective marketing strategies. that track success of the phone-based campaigns. Only by investing in e-marketing campaigns However, to fully grasp which of your campaigns and sticking to them will dealers become is working for you and warrant further investincreasingly optimistic. When the dust settles ment, a program that collates online and offline after the economic implosion you’ll be poised to data, such as Net Director LeadBeast, is ideal. take an even bigger bite of the market and reap By collating information from both online the rewards of your hard work.

‘The need to find what works best and stick to it still applies when marketing your firm.’

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What is SAF?

Specialist Automotive Finance (SAF) was introduced by the Finance and Leasing Association (FLA) to raise skills and knowledge surrounding the sale of nance in car showrooms.

Where to nd SAF information?

www.SpecialistAutomotiveFinance.org.uk, the industry’s SAF portal. Includes a link to the competence test and supporting reference material. www.FinancingYourCar.org.uk, provides free advice to consumers on the products available to them in the showroom to help fund their next car purchase.

Why SAF?

For further information contact Amy Smith on 020 7420 9613 or email: amy.smith@a.org.uk

For dealership staff, the SAF competence test will be a real advantage. It will be clear recognition of your professionalism and expertise and will give customers condence in the quality of your advice on motor nance options.

Who should register for SAF?

SAF is free and open to anyone involved in the sale of motor nance. Companies should go to www.SpecialistAutomotiveFinance.org.uk for more information on how to register.

Finance & Leasing Association. Important date for your diary. 14 May 2009

Authenticating Innocent Private Purchaser (IPP) Claims BMW Financial Services, Hook, Farnborough

This new Innocent Private Purchaser (IPP) workshop is an intensive training session following up the FLA’s highly-successful IPP brieng last October. This programme will provide an in-depth analysis of the key IPP issues with the aim of developing industry best practice.

Programme summary Delegates will get a brief legal overview of IPP claims followed by a choice of three workshops on:

• • •

Reviewing documentation from alleged IPP claims Starting IPP investigations Scrutinising IPP claims in the near/ sub-prime market.

The cost of attending this half-day workshop is £125 plus VAT. The workshops will be facilitated by: • Mercedes-Benz Financial Services • BMW Financial Services • Lloyds TSB Asset Finance

The workshops will conclude with a discussion on industry recommendations for responding to IPP claims.

To register call Linda Charles on 0207420 9626 book online at www.atraining.org.uk or email linda.charles@a.org.uk for full booking information.

CarDealerIss14.indd Car Dealer - IPP event.indd 1 44

3/4/09 10:38:45 26/03/2009 11:34:57

09 11:34:57

cult cars servicing

in association with the Motor Industry Code of Practice

Bookings boom for online garage W

Cracking the Code Chris Mason, says it’s all starting to add up

Servicing outlet sees bookings rise after investing in online system that lets customers pick their own slots HALFWAY Garage in Thatcham has ‘significantly’ improved income with a new web booking system. The Berkshire garage uses the Webbooker service, which allows customers to arrange servicing and MOTs online. This means customers can book in cars even when the garage is closed – and ensure there are no clashes. It does this by allocating specific time slots, meaning two customers cannot send their car in at the same time. Halfway Garage manager Danny Reed said: ‘We were getting a large number of MOTs and full services booked online within weeks of going live. We are now truly open all hours for business. ‘We have substantially increased the conversion from our website to bookings, and therefore have more money coming through the door.’ The system was invested in following investigation by Halfway, which showed that website enquiries were not being converted into aftersales bookings. ‘Like most people, I have booked flights and tickets online, and it occurred to me that it would be great if we could offer MOT and service booking online.’ Webbooker developed the system specifically

Don Riches, left, and Danny Reed with car dealers in mind. It consists of a website link into the garage’s bookings pages, calendar and diaries – ‘Without any integration or messing around with our existing systems,’ said Reed. The online booking setup is now available to other car dealers. Webbooker also boasts of trade integration, which adds further capabilities to the new system.

hen the National Consumer Council published its ‘At a Crossroads’ paper, it used statistics obtained from the Department for Trade and Industry that we, as a sector, were unable to challenge – because we did not have the data ourselves. Equally, some quite astronomical financial figures were bandied around, but without hard evidence it was not the time to enter into arguments over numbers, but rather we set about developing the Code to address the core problem. Since then we have seen other reports and surveys that state how many thousands of complaints get registered against poor-performing garages – when in fact most of those ‘complaints’ are actually just enquiries or calls to seek clarification on a matter. Well now we, Motor Codes, are starting to build a robust set of data on what is really happening out there in the service and repair sector. The case studies and information that resulted from the first meeting of the Independent Compliance Assessment Panel gives us a robust foundation of factual information. Contrast ‘official figures’ of more than 16,000 complaints in 2008 regarding service and repair, with the fact that Motor Codes can report, during the first four months of operation, its Consumer Advice Line immediately helped 1,116 people and a further 32 were satisfactorily handled through the Fast Track assistance process. Genuine complaints that had to be escalated to conciliation totalled only 10! Consumer Direct are already signposting callers to us for advice and guidance – recognition of our approach to qualifying enquiries. Who knows, one day we may even be able to answer that question that seems to confound everyone – just how many garages are actually out there? For more information see motorindustrycodes.co.uk

RMIF will ask for members’ opinion on Code of Practice THE RMIF has responded to our calls for it to back the Code of Practice and drop its reconciliation service. The Retail Motor Industry Federation told us that the Motor Industry Code of Practice was discussed at a recent board meeting. ‘It was decided to seek the views of the general membership, which is currently being done in the RMIF’s regional meetings,’ the spokesman told us. ‘Following the response from the

membership a decision will be taken on the way forward,’ he added. We asked for comment from a director, but as yet, haven’t had a response. We believe the Code of Practice is clearly the industry leader, not because director Chris Mason is one of our columnists – but because it meets the requirements laid down by the authorities to avoid the threatened super complaint. We await the results of the RMIF meetings with interest…

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

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CarDealerIss14.indd 45

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

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...in association with Really Good Domains

dot com

...in association with Really Good Domains

Internet’s rise in importance Really Good Domains have unearthed some interesting research and it makes vital reading for savvy car dealers

o you understand the automotive purchase process? It is a straightforward question but the answer has become far more complex over the years. An excellent bit of research came to light in February from Microsoft Advertising into today’s purchase process which revealed some further insights into consumers’ buying habits. It makes interesting reading when it comes to slicing up your marketing and advertising spend. The survey sample represents a mix of new, used, private, and company car buyers and to ensure a good cross-section of views were captured, people were interviewed both online and offline. In all, more than 600 people provided in-depth responses to Microsoft. Perhaps the most startling finding from this research is that in the past four years (20042008) the internet has overtaken dealers and friends and family as the main source of information used when buying a car. Yes, you read that correctly, the car-buying public put a greater weight in the information they read on the internet than their friends! This astonishing finding further emphasises the role the internet now plays in our lives, and while it is true to say that buyers still use a wide array of sources, 62 per cent will use the internet. Far higher than dealer showrooms (54 per cent), friends and family (46 per cent), magazines ads (seven per cent), newspaper reviews (18 per cent) and that traditional dealership favourite – the radio advert (three per cent). Another important area highlighted by this research is that most buyers actually expand their options, whether this is manufacturer, model, variant, or extras, before they finally settle on a model, while the decision length

‘It’s hard to believe, but car buyers put a greater weight in the information they read online than their friends.’ has remained the same over the past four years at around three months, giving a broad window and numerous opportunities to engage and influence throughout the process. The role of the internet has also changed for car buyers, with a dual use now reported. Buyer confidence is linked to two areas, firstly the more traditional review sites, editorial and online advertising is still an important area, but secondly ‘collective wisdom’ is gaining in importance, so social networks and websites where buyers can leave comments are an increasingly important tool. The consumer car review website Road TestReports.co.uk – pictured above – reinforces this research with news of a 50 per cent increase

in traffic in the past three months. In March alone the website saw 130,000 visitors all looking to read and contribute consumer reviews on cars and vans; excellent research material for the car buyer deciding on their next purchase. This research is just the latest confirmation that the internet is the most important medium for dealerships to communicate with car buyers which makes it even more important to make sure your cars, deals and brand can be seen by the maximum number of people. Websites such as ContractHireAnd Leasing.com, SaveMoneyOnCars.co.uk and AutoTrader.co.uk succeed by featuring at the top of search engine results and offering the car buyer all the information they need throughout the purchase process. The final message from this research was clear: buyers are taking time to explore, follow and discard leads, and share opinions with others – plus they’re enjoying the process.

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

Online advertising that works ...from a name you can trust If you’re interested in selling seriously more vehicles, call 0161 482 7650 now

CarDealerMag.co.uk | 47 ing.com CarSupermarkets.co.uk TheGreenCarWebsite.co.uk VanLeasingSpecialOffers.co.uk SaveMoneyOnCars.co.uk R 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 CarDealerIss14.indd 47 3/4/09 10:38:53 ing.com CarLeasingSpecialOffers.co.uk FleetDirectory.co.uk ContractHireAndLeasing.com SaveMoneyOnCars.co.uk C

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...in association with Vansunited.co.uk

cars LCVcult insight

Van prices are rising again More good news on van front as values rise, while Citroen recruits a Peugeot...

t’s not only used car prices on the up – BCA reports that the van market is enjoying similar gains to the used car market. Values in February rose by nearly £200 – an increase of 6.6 per cent. Overall, this means used LCVs today are worth more than 12 per cent more than they were in December. The market has still not recovered to its previous peak seen in January 2008, though. Back then, the average used van cost £3,868. Today, the value is £3,117. BCA’s Duncan Ward said: ‘With the LCV market experiencing exceptional demand since the turn of the year, it is no great surprise to see used values climbing for the second month running. ‘The fact is that LCV values had reached a very low base by the end of last year, and a recovery in average price was somewhat overdue.’ It’s given van dealers another headache, though – simply sourcing sufficient used stock to meet demand! Sounds like a happy problem to have, but it’s still a real issue to overcome. Ex-fleet and lease vans are most in demand. They’ve recovered from returning a pitiful 83 per cent against CAP, to a much more sensible 97 per cent figure. And, on the ground, BCA says the change in the market dynamics over just a few weeks is dramatic. ‘Buyers are competing strongly across the board, and even stock with cosmetic damage is attracting a flurry of bids, which simply was not happening in 2008,’ says Ward. ‘As far as values are concerned, well-presented retail quality vans are outstripping guide values by a considerable distance. We are also seeing significant activity from online bidders through our Live Online service as dealers widen their search for the right stock.’ And the future outlook? ‘We are hopeful that this interest will be maintained well into the second quarter.’ Meanwhile, Citroen has strengthened its

Ford bolsters its LCV range with Fiesta Van FORD has taken the covers off the best-looking van we’ve seen in years: the new Fiesta Van. Priced from £9,025, it is on sale now – and offered in a sporty range of trims.These include Trend and SportVan variants, alongside the base entry version, but it’s the

SportVan that we’ve got eyes for. It looks great for starters, courtesy of a bodykit, 16-inch alloys and rear spoiler. Inside, there’s also a leather steering wheel, sports front seats and, to cap it all, lowered suspension for racy handling. Just the job for utilising the

commercial vehicles sales division – by recruiting a Peugeot! Charles Peugeot will head up the newly-created Commercial Vehicle Sales Division, reporting to Citroen UK MD Xavier Duchemin. He’s to be the boss of a team of nine, consisting of today’s CV operations team, plus six new business centre managers. Despite being only 28, Peugeot’s gained plenty of experience within PSA – for the past three years he’s been at the maker’s CV division in Spain.

grunt of the 1.6-litre TDCi engine. On a more sensible level, Ford boasts the new Fiesta Van – pictured above – can return up to 67.3mpg, and has a payload of up to 515kg. Insurance groups are low, as is a base CO2 figure of 110g/km.

‘This is a very exciting opportunity, and I am pleased to be working with an excellent and well-established team,’ he said. ‘With virtually brand new models across the entire Citroen LCV range, I am convinced that we have a very promising future in the UK market.’ He’ll be hoping to build on the brand’s 20year success in the UK market, which has seen it sell more than a quarter of a million LCVs. Auctions, p58

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Peering into the lives of the motor trade...

On The Spot

Name: Chris Mason Age: 39 Lives: London Any family? Married. My wife is expecting our first child.

Do you have an average day and how does it pan out? There is never an average day in the Motor Codes office, we don’t allow it.

Ghostbusters, classic stuff. Or is it Quadrophenia? Taxi Driver, Repo Man, Pulp Fiction, Blade Runner or Apocolypse Now. Leave it with me, I’ll get back to you…

What do you drive? Just progressed from three wood to a Wilson driver, so about 200 yards!

What newspapers/magazines do you read? Flick through most newspapers for general awareness and read Golf, Punk and Mojo.

Favourite drink? If forced, I’ll have a small glass of South African red.

What was your first job? Paper round.

What is the most expensive thing you’ve ever bought? I am a man of simple means…

What was your first car? 1976 Mini, cost £50, written off and sold for £50. In a year! Who do you work for now? Motor Codes Limited. What does this involve? The delivery of automotive self regulation via codes of practice and a long-term objective to change the perceptions of our industry through maintaining minimum standards of operation. What are your job’s biggest challenges? Changing

the perceptions of our industry and getting people to understand that a code of practice is nothing to be afraid of, more an excellent and very effective marketing tool for those that are responsible business operators.

What’s your mobile phone ring tone? It’s a telephone ringing. What was the first record you bought? That’s got me, it was either Is Vic There? by Department S or Heart of Glass by Blondie.

Any downsides? None. How much do you earn? I provide excellent value for money.

Favourite film? I have many, depending on mood, genre etc – the top five can change in a moment. All-time favourite?

Favourite holiday destination? Greek islands – the little ones. Have you got any superstitions? None. What is the biggest challenge car dealers face? Sustaining their business. What would be your number one tip for car dealers? Look after your customers, stick to core business and do the simple things well. And finally... what’s your motto in life and business? Don’t answer stupid questions.

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

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finance T

‘Really, banks don’t want to lend at all,’ says Smith. That’s why they’re being so picky. This means one thing for car dealers – eager customers who can’t get credit. It’s a nightmarish situation. To which Smith says he is the answer. ‘There is no shortage of money in the sub-prime sector,’ he says. Indeed, business is thriving for The Car Finance Company, which has two offices in Aldershot and Portsmouth. ‘There’s been a real uplift over the past two months.’ His message to dealers is simple. ‘If you’ve got a potential car buyer who’s been declined finance, don’t waste days faxing round quotes to other lenders – get in touch with me. We can, right away, use our system to see what the customer’s like, and say how we can help. If they’re there, it’s always best to strike while the iron’s hot.’ ‘All our staff give out their mobile numbers, and

Machine

he phrase credit crunch doesn’t mean much to Mark Smith of The Car Finance Company. Over the course of the past decade, his company has loaned out an impressive £150m for buyers to buy new motors from car dealers. And the good news is that despite the doom and gloom, there’s no end in sight. ‘I’d say I have access to around £3-£4m a month. Easily, a million a week. Finance companies like what I’m doing, like my numbers, high conversion rates and profits, which means they give me a bigger slice of the market than most,’ he told Car Dealer. It’s not Smith idly boasting, either. He’s merely stating the facts, which have seen him become a key player in the car finance industry. His area of expertise, he says, is in sub-prime finance. An area he outperforms the market in, for one simple reason: ‘I understand what finance companies’ needs are.’ This, when added to his close affinity with the needs of dealers and car buyers, means he’s gained a reputation for being one of THE men to turn to. ‘Most finance companies will know of me,’ he says. Not because he stands on a plinth and shouts about himself. Simply because he commands a bigger slice of the market than most, he says. Right now, sub-prime lending is a thriving sector to be in. This is because banks have tightened their lending criteria so much, many more people now find themselves classed as non-prime or sub-prime. It’s no longer a dirty word. Even the company accountant’s wife, with £10k in the bank but just the one missed payment on her home study cookery course, could now be labelled sub-prime. That’s how much things have been tightened.

Struggling to get finance for your customers? Richard Aucock went to meet the man who reckons the credit market is still alive and kicking

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‘If you’ve got a potential car buyer who’s been declined finance, don’t waste days faxing round quotes to other lenders – get in touch with me.’ Mark Smith you can always get hold of them. None of us mind out-of-hours calls to give off-the-cuff advice… it’s all part of the service.’ Most staff members have their own areas of specialist expertise. Smith’s structured the company so individual staff members deal with individual finance companies, rather than there being multiple points of contact. Generally, Smith secures interest rates of around 6-7 per cent, flat. They can rise up to 20 per cent for the hardest cases, but such instances are rare. ‘It all depends on an individual’s circumstances, the balance financed, terms of the loan and so on.’ Basically, they’re doing all they can to turn around an unfair perception – that sub-prime is a dirty word. It’s not. ‘Really, in the current economic climate, it’s more of an inevitability, and is something that dealers should be fully up to speed with. Far more of their customers will now be considered non-prime. It’s now a reality.’ Trouble is, says Smith, most brokers who purport to be sub-prime specialists don’t actually understand the market that well. ‘We know, for example, the importance of full information provision, and have the systems in place to give sub-prime lenders all the information they need, fast. ‘We’re effectively like a free business manager for car dealers.’ It is this service that helps him boost the profile of sub-prime finance. ‘Professionalism is all,’ he adds. What’s more, The Car Finance Company also has its own in-house-developed IT system. For dealers who choose online proposal quotes, this is a true one-stop system. ‘It carries out credit checks on customers, HPI checks on the car… it does the lot, processing and answering very quickly.’ Again, shortening the time-to-decision. The Car Finance Company can even offer credit limits. If customers want to buy a car, but can’t decide which one, the dealer can pre-apply for a loan up to a certain amount. Customers can then choose any car up to this cash limit. This is something that many lenders shy away from, says Smith. ‘Finance companies don’t like this approach, as it’s very hard to manage without the right systems in place…’ Again, that’s where The Car Finance Company is different. The general perception of the sub-prime broker market, he says, is one of over-promise and underdelivery. Smith claims he is the exception to this. ‘It’s proven by our conversion rates, of around 30 per cent – they’re way up on the industry average of 20 per cent.’ Smith can get finance. The money is there. With The Car Finance Company, he says, dealers can simply hand over their queries and the rest will be sorted – with the right result at the end of it. Reason enough for many a buyer and dealer alike to agree that he’s the multi-million pound man… [CD]

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products 1. Snooper Lynx

Price: £200 Contact: snooperuk.com SPEED cameras sprout up around the country faster than daffodils, which means an occasional slip in concentration can easily land you points. The Snooper Lynx is a traditional camera detector that uses a built-in database matched to a GPS signal to warn you of traps – but it’s got a very clever addition. A button on the device allows users to add a camera to the database in seconds and this is then instantly transmitted to all other devices in the area. Smart!

2. Printstik

Price: £210 Contact: planon.com IF YOUR car is your office, you’ll love this! The Printstik is a mobile printing solution that uses direct thermal technology – much like the receipt printers in most high street stores – to pump out full A4 sized pages on the go. It can be powered by your car’s 12v cigar lighter socket or you can use the built-in battery that will last 30 pages on a full charge. It works with Windows Vista and BlackBerrys.

3. Perfect Palm

Price: £6 Contact: autoglym.co.uk THESE pads may look very simple, but they’re packed with technology! There are two versions of the Perfect Palm available at launch – the red one is for applying polish and other cleaning products to your car. The blue one has a microfibre surface to leave a streak-free finish when removing polish. The finger-shaped design fits perfectly to your palm (hence the name!) and makes them really easy to use. We love them.

4. McLaren Pen

Price: £15 Contact: caagis.com THE Vodafone McLaren Mercedes pen isn’t any old writing implement – oh no – this is a Gravity Pen! A what? Let us explain. Fittingly clever enough to slot into Lewis Hamilton’s top pocket, the pen doesn’t have a button or slider to reveal the nib – simply flip it over and it appears. And when you turn it over the other way it disappears back into the body. Don’t ask us how it works, all we know is we’ve had hours of fun trying to work it out!

5. Gearshift Knob Umbrella

Price: £28 From: caagis.com WANT a seriously cool umbrella? Yes, there really is such a thing! This one is beautifully made and has a detailed, six-speed gear knob for a handle. It has an automatic opening mechanism and the wheel nut end is a brilliant finishing touch. If you have to use a brolley, make sure it’s one as cool as this.

6. Ring Car2Car

Price: £25 Contact: ringautomotive.co.uk THE Ring Car2Car Starter is a modern take on booster cables. You simply connect the flat car to one that’s working via the cigar lighter socket plugs on the starter pack, wait a few minutes then twist the key. The unit works exactly the same way as booster cables providing a charge from the healthy donor car to the dead one. It has a five-metre cable and works on all cars up to 1.6-litre in size.

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WINNsolicitors National Specialist Accident & Compensation Solicitors

USE OUR VIRTUAL RECEPTION TO CAPTURE FAULT CLAIMS AS WELL AS NON FAULT AND MAXIMISE YOUR CONVERSION RATE

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OBTAIN NEW RETAIL CUSTOMERS GARAGE ACCIDENT MANAGEMENT If a customer attends wanting an estimate we can capture the repair for you even if it is a ‘fault’ claim. We will take details from the customer, report and confirm to his/her insurer and if he/ she wants you to do the repair. In 99%+ cases you keep the repair.

FREEPHONE 0800 917 8177 CarDealerIss14.indd 56

www.winnsolicitors.com email | solicitors@winnsolicitors.com

3/4/09 10:39:15

...in association with Winn Solicitors

accidents

You’ve picked a partner, now make them pay! Once you’ve chosen an accident management company you need to make sure the promised revenue materialises – and that means involving all your staff...

icking an accident management company is hard enough – but once you’ve chosen you need to ensure the promised revenue stream materialises. A good AMC will not only enhance your brand, but can improve your service to customers too. But you need to make sure your clients realise that the accident management service is an integral part of your offering that will benefit them. You need to train the majority of your staff, not just on what to do, but on the benefits for all within the organisation. Sales staff need to know that, if the ACM is effective, customers will be in a replacement like-for-like branded model and are more likely to purchase a new vehicle. They need to know the ACM will always seek retail value if a vehicle is written off – as this gives them a selling opportunity. They also need to know the ACM always pursues diminution if the vehicle is less than three years old. This provides a sales opportunity where a vehicle has been repaired. Likewise the bodyshop staff need to be clear that it is worth making the enquiries with potential customers to identify non-fault work as the much higher credit repair rates make it worthwhile to do so. Some bodyshops and dealerships have found it difficult to get their estimators/reception staff to start thinking this way and they have sometimes gone down the line of having a salesperson for this role. This can be very effective. Give them a short script and keep it simple – have a direct link to the accident management service so one push of a button puts the call

Bodyshop staff need to be clear it is worth making enquiries with potential customers through to the correct person. Put the client on the line to explain what has happened. Capture rates are much better where this occurs rather than details being passed by fax or email. This is seen as part of the personal service and is perceived by the customer as being a face from the dealership and their ACM. Management buy-in to the scheme is essential too. Staff are reluctant to see this as key unless they are told it is core by management. Staff incentives can work – in similar-sized dealerships those with a reasonable staff incentives tend

‘Management buy-in to the scheme is essential – staff are reluctant to see this as key unless they are told it is.’ to perform between 200 per cent and 300 per cent better than those that do not. If you want the repairs, sales and service for the customer, some of the commission needs to be shared with employees actively engaged in the service. Once the service works effectively, fine tuning can occur to enhance opportunities. Good ACMs can provide legal assistance policies to fleets helping to tie in the repair and purchase work for you. They can assist in joint marketing and sales visits if you have fleet customers you wish to tie in to. Contact Winn Assist on 0800 917 8177 or visit winnsolicitors.com

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auctions

Used prices still going up Auction house BCA reports used prices are still heading north, while new group’s ﬁrst sale is hailed a huge success

sed car prices are continuing to rise, reports BCA – a trend that’s been underway since November. But what’s really encouraging is the fact it shows no signs of slowing down. ‘The average price of used cars sold at BCA has been rising across the board since late last year, but the market really stepped up a gear in January,’ said BCA’s spokesman Tim Naylor. This has gone a long way to righting the dramatic falls seen in the earlier part of 2008. Prices fell by nearly a third in some cases. A shortage of stock is also having an effect – and the price crash of 2008 is partly behind this. Values fell so much, many large fleets decided to extend their deals, rather than suffer a residual hit. Therefore, cars that would usually be flooding the market have been kept out of the loop. Of course, lower sales of new cars have also had their impact on the nearly new market, and may continue to keep used prices high further down the line, too. Such demand from customers, coupled with this shortage of stock – and signs of improving confidence – all mean professional buyers are being less cautious, says Naylor. ‘Added to this, there is obviously a little more money about,’ he said. ‘High demand, allied to a relative shortage of stock, will always result in rising prices at auction. Used prices fell so far last year that, even in the current rising market, there is still value for money to be had.’ Meanwhile, relaunched car auction house the Aston Barclay Group enjoyed an ‘extraordinary’ turnout at its maiden sale. The Shropshire centre boasted a record attendance of 180 signed-up buyers – breaking all previous records. They helped achieve an overall return of 99 per cent CAP Clean on the day, with some cars

BCA reports used car prices are still on the up – and there is no sign of a slowdown

‘High demand, allied to a relative shortage of stock, will always result in rising prices at auction.’ boasting a 125 per cent CAP figure. Formerly Press Heath Motor Auctions, Shropshire’s Aston Barclay Group will also encompass the Chelmsford Car Auction and Westbury Motor Auction. New branding, systems and websites are in the process of being rolled out. Vendors were very happy with the inaugural sale, with some declaring their best result of the year so far. Richard Manning attended from Derby’s Hilton Garage. He said: ‘I was delighted

to find that the sale not only had a high volume of fleet entries, but was a smooth and efficiently-run auction. ‘There was a huge crowd in attendance and I managed to buy a number of quality vehicles from a selection of the larger fleet companies. ‘The after sale service was second to none and on a different level to the larger auction groups, with a much more personal service. I would recommend the site to any fleet buyer.’ Which, of course, pleased the group no end. ‘The sale exceeded all expectations,’ said director Barry Watts. ‘And it has confirmed Aston Barclay Group’s reputation as a serious and strong contender for fleet re-marketing business. Our major investments in the centres at Press Heath, Chelmsford and Westbury give us excellent national coverage.’

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...Advertisement feature

automation

You’ll be on to the winner with firm’s new software WinWin World’s offering for car dealers is complete with the launch of Win.IT. Here’s how it can help you...

usiness life can be quite mundane from time to time and the launch of yet another electronic lead management product for the showroom may quite rightly cause some readers to glaze over. However, WAKE-UP and take note! Every so often something new, something that works better, something that is a true innovation does come along. As we all know lead management and CRM do make a real difference to the bottom line so any new innovation in this area is always worth a look – especially if your existing system is not moving forward or earning its keep. WinWin World has just launched Win.IT to complete its product line of car sales and award winning CRM systems, and it is very different to anything else around. Win.IT has been designed to be the most user-friendly lead management system on the planet. It’s fun to use because it looks more like an interactive computer or PlayStation game. It’s better because it’s infinitely configurable, it’s much cheaper than its competitors and it’s faster because it uses the very latest browserbased technology. So, to use the old Hollywood adage of better, quicker, cheaper you can have any two – Win.IT delivers all three. Because Win.IT has been built using the same underlying technology as its q.bit stablemates it can offer full connectivity with Track.IT and Keep.IT making the whole system potentially far more complete than anything offered in this sector. No re-keying to produce invoices and deal stacking, REAL deal optimisation and CRM from the Institute of Transport management winners of Best Dealership CRM System 2008 and now 2009 as well. The new technology within Win.IT allows users to customise not only the process and words on-screen but potentially the theme and look of

WinWin World’s software packages are not only easy on the eye, but they’re easy to use too

‘Win.IT has been designed to be the most user-friendly lead management system on the planet – it’s fun to use because it looks more like an interactive computer or PlayStation game.’ the system too. Off the shelf, Win.IT has been built to a car racing theme with customers and prospects being drivers and the salesperson being the race team manager– the idea is to win the race. Of course a race win involves a sale but you do not get to stand on the podium until your ‘winner’ has collected their new vehicle. A series of racing flags and themed icons help to focus the salesperson’s (or team manager’s) mind along the way. Every other aspect of lead management is there with new versions and ideas being added all the time, but always keeping it simple.

Many systems have become complex in the rush to add whistles and bells. Win.IT has a total focus on being used to capture data and sell more cars. Adding a very new dimension for users and their customers alike. New users of WinWin products also have new and innovative ways to pay. WinWin believe CRM products should increase bottom line profit and should never be considered a cost to the business. Using the very latest Microsoft Silverlight technologies plus the Web2Office scripting engine, Win.IT looks like no other business software on the market yet has the stability of many years’ development as the technologies used are all tried and trusted. Win.IT will sell more cars, Track.IT will make more money out of those sales and Keep.IT completes the loop with award-winning CRM to ensure you not only get the most out of all those customers, but you get to keep them and sell to them again next time. Contact WinWin about this new groundbreaking product on 020 7538 6688 or email callmenow@winwinworld.co.uk

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VIBRANT NEW SALES CHANNEL REGULAR ONLINE LIVE AUCTIONS ONE STOP SHOP DE-FLEET, REFURBISHMENT, DISPOSALS REDUCED COSTS HIGH QUALITY CONSISTENT SERVICE REVOLUTIONISING THE WAY VENDORS PRESENT USED CARS TO MARKET Cost | Convenience | Credibility

To find out more, contact us at:

www.paragonremarketing.com No small print. No*. What you see is what you get!

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competition

Last chance to WIn replica Hamilton helmets! Car Dealer has teamed up with Mobil 1 to offer ﬁve lucky readers the chance to win a replica Lewis Hamilton helmet – just check out the champ’s Supercircuit...

Welcome to Lewis Hamilton’s Mobil 1 Supercircuit – linking his favourite turns and straights from the world’s most gruelling Grand Prix tracks. For a real-time tour around Lewis’ dream circuit, please visit www.mobil1.eu 5TH GEAR & 255 KM/H

7 SPA-FRANCORCHAMPS - POUHON

6 SUZUKA - TURN 1

6TH GEAR & 260 KM/H

5 MONACO - TURN 12, TABAC

4TH GEAR & 172 KM/H

8 MONACO - TURN 4, CASINO

4 SPA-FRANCORCHAMPS EAU ROUGE 7TH GEAR & 295 KM/H

3RD GEAR & 130 KM/H

6TH GEAR & 295 KM/H 4TH GEAR & 175 KM/H

9 INTERLAGOS - MERGULHO

3 SUZUKA - 130R

7TH GEAR & 290 KM/H

START/FINISH LINE

5TH GEAR & 260 KM/H

1 ISTANBUL - TURN 8

5TH GEAR & 200 KM/H

2 MAGNY COURS - ESTORIL

one of its subsidaries.

ver wondered what a racing circuit would be like if you let a world champion design it? Well, this is it! Vodafone McLaren Mercedes’ technology partner, Mobil 1, has challenged Lewis Hamilton to come up with a ‘Supercircuit’ combining his favourite parts of tracks from around the world. The fantasy circuit is a combination of the toughest corners, chicanes and straights on earth and the makers of Mobil 1 have put it together on VIDEO! To celebrate Lewis’ Supercircuit, Car Dealer has teamed up with Mobil 1 to offer readers the chance to win one of five replica helmets. The helmets are exact copies of Lewis’ trademark lid – seen under his arm left – but half the size. They are made from fibreglass and feature all the motifs and sponsorship that the full-size helmet carries. The visor is tinted and tilts, there’s a realistic buckle and even foam padding on the inside. The helmets are worth £60 each – and are sure to become true collectors’ items. To win one all you need to do is

log on to www.Mobil1.eu, click on Supercircuit and watch the amazing video of Lewis taking on his imaginary lap, then answer this question correctly (which is answered in the video): 1. At corner two, rapid oil ﬂow is vital to protect and cool the engine – at this point how many times faster than Lewis’ heartbeat is the oil pulsing? a. 50 times faster b. 200 times faster c. 500 times faster Entering is simple. Just send your name and address and the correct answer in an email with the subject header ‘Mobil1 Comp’ to us at james@blackballmedia.co.uk. Or you can enter by text. Start your message with the word DEALER, then enter the letter that corresponds to your answer, your name and address and send to 82085. Entry costs no more than usual message rate! We’ll pick five winners at random on April 30 and send the helmets to the lucky ones. Good luck!

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used cars

Optimistic start to ’09

Values are set to level out over Easter, says HPI’s Valuation Expert, Martin Keighley

he recent rise in used car values has got everyone asking two very important questions: why have values risen and will this trend continue? As always, it’s down to supply and demand. Seasonally, values always rise during early spring and start to decline again late April. Cars just looked so cheap earlier in the year, but this is now not the case on the most popular models. Retail demand remains weak for anything other than small cars, despite buoyant trade activity. There is still, however, the shortage of quality used stock, which is likely to continue for the foreseeable future. We can also see the signs of the return of solus fleet deals, not seen since the days of the Cortina, which could in turn lead to even less used car choice. Looking at the high street, retail sales are down generally after the post-Christmas surge. In addition, the spectre of unemployment is looming for many and loans are still difficult to come by. Confirming our worst fears, economic experts tell us that the recession is expected to last at least 12 to 18 months. In terms of the global economic situation, we are certainly not out of the woods yet and used car values could take another tumble. Despite press hype telling us that there is ‘clear evidence of recovery’, we expect values to level out and perhaps tail off during the summer for the majority of vehicles. But as always clean, low mileage small cars will continue to make strong money.

Buoyant wholesale market means car supply is tight, according to HPI Used Car Valuations Index

here is talk of shortages and seasonal trends that are pushing prices up in the trade at the moment, but are those rises here to stay? What is clear is the first three months of 2009 brought optimism to the used car market – but there is still woe on the new sales front. Values rising March usually sees a rise in used car values and this year continues that trend with all month-on-month values showing a small increase. This is partly due to the normal March plate change, general stock shortages pushing prices up and the fact that cars were looking incredibly cheap. The 36-month petrol sector saw values rise by 10.8 per cent, while the 36-month diesel vehicles experienced an increase of 7.8 per cent. All 12-month cars increased by 7.2 per cent, compared to 9.5 per cent for all 36-month cars. The year-on-year rate of depreciation has decreased from 34.9 per cent to 30.4 per cent on all 36-month cars and 29.6 per cent to 24.1 per cent for all 12-month cars. The 12-month petrol and diesel sectors fared best with the declines slowing by 5.7 per cent to -24.1 per cent and 5.3 per cent to -24.1 per cent respectively. Meanwhile, 36-month petrol and diesel sectors saw a decline of around 4.5 per cent. However all sectors performed well, especially small cars. The used wholesale market is very buoyant with

Mini sector 10 major ﬂeet players Rank

Model

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

Toyota Aygo smart Fortwo Citroen C1 Ford Ka (New) Fiat 500 Peugeot 107 VW Fox Suzuki Alto (New) Renault Twingo Mitsubishi i

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

Perodua Kelisa Toyota Aygo VW Fox Hyundai Amica Suzuki Alto (New) Hyundai i10 Citroen C1 Peugeot 107 Perodua Kenari Kia Picanto

small, low mileage cars, which are in short supply, continuing to make very strong money at auction. Retailers are prepared to work with smaller margins and with used cars offering such good value for money generally, demand across the board is beginning to rise. While higher mileage and larger cars are still struggling to find buyers, will the upward trend in values reported in March continue? Running short The very real shortage of quality used stock looks set to continue for some time which will help to boost used car values. However, values could be influenced by nearly new cars, often manufacturer self-registrations, hitting the market at rock bottom prices. But the key to sustaining rising values lies with economic confidence – a factor which remains to be seen.

Supermini values continue to look strong

...in association with HPI Valuations

Models in range

Average new price

Average RV 36(60) £

Average RV 36(60) % Monthly depreciation cost £

16 14 7 5 16 7 4 4 5 1

£8,407 £9,785 £8,402 £8,985 £10,376 £8,474 £7,478 £7,640 £9,369 £9,539

£3,784 £3,939 £3,229 £3,445 £3,973 £3,207 £2,819 £2,638 £3,165 £3,100

45.1 40.7 38.4 38.4 38.4 37.9 37.8 34.6 33.6 32.5

£128 £162 £144 £154 £178 £146 £129 £139 £172 £179

2 16 4 4 4 5 7 7 2 8

£5,010 £8,407 £7,478 £6,680 £7,640 £7,548 £8,402 £8,474 £6,519 £7,423

£1,075 £3,784 £2,819 £2,000 £2,638 £2,430 £3,229 £3,207 £1,238 £2,103

21.5 45.1 37.8 30.0 34.6 32.2 38.4 37.9 19.0 28.4

£109 £128 £129 £130 £139 £142 £144 £146 £147 £148

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tail light

Sub-Prime Time R

ecently, we took the decision to stop accepting applications through Broker Introducers giving our existing brokers three months’ notice; with no more applications being accepted from them after May. Over the past few years we’ve cut brokers that weren’t adding value to the relationship, and in the past year we’ve continued to work with about 10 that we felt were adding some value, but this recession does make you think through all aspects of your business and what’s best for your business and for your market. In tough times you’ve got to make some tough decisions, and I believe that today and for the foreseeable future, it’s much better that we deal direct with our dealers so that if something goes wrong during or immediately after the sale we can sort out the issues quickly and effectively without a third party being involved. Using our own experience as an example, the simple fact is that those dealers that come to us direct almost double their level of conversion, as it’s easier to overcome the issues that arise and work out a deal when you’re dealing directly with the decision makers. Also when cash is tight, we’d prefer to be paying the commissions associated with these sales directly to the dealer. In making this decision, I wondered how many dealers were concerned today about their current arrangements for placing business and were reviewing alternatives. Using brokers is the easy option, i.e. you pass over your applications and they ‘squirt’ them over to a number of lenders to see if someone is willing to accept it, but dealers pay for this service (indirectly and sometimes directly) and in this economy I think the first question to ask is whether it’s better to do this work yourself, increase your conversion and at the same time receive the com-

‘In tough times you’ve got to make tough decisions and I believe today, and in the foreseeable future, it’s better we deal direct with our dealers.’ mission for doing the work? Of course I’m hugely oversimplifying the work that brokers do, but if your footfall and unit sales have reduced over the last year, and you and your staff find you’ve got some time available to put more work into your current sales opportunities, wouldn’t it be better to use this time to gain the maximum cash flow for each and every one of them? The number of brokers still operating in our market has declined sharply over the past year, and this decline will continue, so the second question I’d ask is whether your existing relationships are reliable? Today, most finance providers accept business directly from dealers and I predict that the number of those that don’t will fall significantly over the coming months. Now seems the right time to investigate and create direct lender relationships in all credit markets. Our own evidence suggests that this will significantly increase the levels of business written, and will provide additional income while ensuring you have reliable routes to funding for your customers.

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. Editorial Director James Baggott E: james@blackballmedia.co.uk T: 023 9252 2434 Deputy Editor Richard Aucock E: rich@blackballmedia.co.uk T: 023 9252 2434

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

Advertising Manager Darren Stokes E: darren@blackballmedia.co.uk T: 023 9252 2434

Contributors Chris Jervis, Dan Harris, Mike Askew (not Big Mike!), Dave Timmis, Simon Evans, and Will Baggott Commercial Manager Thanks to... Duncan Chappell Owen Buggy, Tim Marlow, E: duncan@blackballmedia.co.uk Tim Naylor, Linda Baggott and T: 023 9252 2434 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

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(0) -/4/2

6)3)/. $RIVING BUSINESS YOUR WAY

(ELPING YOU TO UNDERSTAND YOUR CUSTOMERS YOUR MARKETPLACE AND TO DELIVER MORE SALES -OTORVISION HELPS YOU MAKE THE MOST OF YOUR EXISTING CUSTOMERS AND TO ½ND NEW ONES ALL IN ONE SIMPLE PACKAGE 3PEAK TO YOUR (0) ACCOUNT MANAGER TODAY AND ½ND OUT HOW YOU CAN

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2EDUCE THE COSTS OF YOUR CURRENT MARKETING ACTIVITY BY HAVING YOUR EXISTING DATABASE CHECKED AND CLEANED TO CUT OUT EXPENSIVE WASTAGE

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3EE HOW YOUR LOCAL MARKET IS DOING WITH OUR TAILORED LOCAL REPORTS )N ADDITION TO THE BASIC PACKAGE YOU CAN ALWAYS BUY ADDITIONAL LEADS WHENEVER YOU NEED THEM 7E HAVE PUT TOGETHER THE PACKAGE TO BE AS EASY TO USE AS POSSIBLE HELPING YOU TO DRIVE MORE SALES TO YOUR BUSINESS

#ALL US NOW ON AND GIVE YOUR BUSINESS THE EDGE

#ALLS WILL BE CHARGED AT LOCAL RATE AND MAY BE RECORDED AND OR MONITORED (0) AND THE (0) LOGO ARE REGISTERED TRADEMARKS OF (0) ,IMITED (0) IS A 3OLERA COMPANY

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