Car Dealer Magazine: Issue 15

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Issue 15 | June 2009 | CarDealerMag.co.uk | £3.50

Driving the future of the motor trade

IAL: OFFIC n

are McnLhunt

Small cars, big fun

o alers for dpe18

nissan 370Z

Better than a TT and faster than a Cayman

Striking oil

Capitalising on the Hamilton effect

Have some fun

Cleaning up

Save AND profit from looking after your stock

Why it’s important to still treat your staff and clients

SCRAP: WIll IT do THe JoB?

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start Issue 15 | June 2009

‘There’s no doubt about it – the 370Z is going to be a hard sell in the green stakes. Perhaps that’s why the sensible price tag is all the more important.’

Road Test: Nissan 370Z, p30 WELL it’s a scrappage scheme Jim, but not as we know it – quipped one unfunny member of staff.

And as much as I hate being called Jim, he was right. Alistair Dur-ling announced the much-anticipated scrappage scheme in his Budget last month, but it came with the usual caveats this government is always so keen to add.

Instead of the £2,000 bung for bangers we were all hoping for, our esteemed leaders decreed that £1,000 was enough and that car makers would have to see that grand and raise them… a grand. Grand.

Did they not realise that these very car firms were in enough trouble as it was? And that if they had that sort of cash tucked up in the metal they would have lopped it off already as a special offer to save their skins? At least that’s what we hope they’d do.

At the time of writing this column a handful of manufacturers had signed up to the scheme. More worrying were the numbers of industry big wigs coming out slating the plans. Independent dealer group Motorpoint even went from supporting the scheme on day one to coming out calling for it to be

axed after seeing the detail. There are reports that all car makers will sign up to the scheme at some point – and it’s likely that by the time you read this we’ll know more. We’ve bought you the most up-to-date news our printing deadlines would allow in this issue and have dissected and explained what we know for you so far. But if you’re after the very latest make sure you log on to our website – CarDealerMag.co.uk which is updated daily with the latest news. We’ve even got a special scrappage scheme section with more than 50 stories in it if you’re really after the detail.

So what’s my take on it? Well, I’m glad the government realised our industry is in need of help – and the scrappage scheme does show our country’s leaders appreciate the severity of the situation.

You’re never going to please everyone with a scheme like this – and the fact they didn’t include nearly new cars or add a green C02 ceiling clause surprised me. But any help is better than none at all – now we just all need to work out how to make it work. And more importantly how we can use it to turn the dire situation we are in around. Our special Agenda piece on the scheme starts on page six.

So what else have we got for you in this bumper issue? Well, we tell you why it’s important to be looking after your staff in these tough times with incentives and rewards (p49); look at the importance of car care and cleaning to sales (p43); and show how the Lewis Hamilton effect can rub off on your showroom (p55).

I’ve spent a day with Nissan in France testing the new 370Z – a great car that’d give a Porsche Cayman a run for its money. And the Car Dealer team set sail for the Isle of Wight in two pocket rockets – the MINI Cooper S and Abarth 500 to settle an inter-office row. Oh, and we find out who won our Bangers4BEN challenge (p38).

Enjoy the issue and here’s hoping this scrappage scheme works... Happy selling!

James Baggott, editor

CarDealerMag.co.uk | 03

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ignition Issue 15 | June 2009

‘If you’re selling either, know this: If a buyer walks in interested in your marque’s offering they’ve either tested or are about to test its deadly rival.’

Twin Test: Abarth v MINI, p22

dashboard 06

Scrappage special

11

Ssangyong exclusive

13 14 16 18 20

The full lowdown on vital scheme

forecourt 22

What it means to dealers here

30 32 34

Ford takes the number one spot

36

UK chief talks to Car Dealer

Chrysler collapse fiesta’s big leap

Autotorq insight

Web firm signs up big makers

mclaren special

Dennis on recession and new car

Big mike

The big man on the big scheme

Twin Test: Abarth 500 vs mInI Cooper S nissan 370Z vW golf gTI Cult Cars: nissan gT-R Spec-v Sales legends: Peugeot 205

features 38 43

Bangers4Ben Result Car Care special

49 55 61 63 65 67 69 70 73 74 79 81 82

Saying thanks

How to keep your staff happy

oil Insight

Capture the Lewis Hamilton effect

Right Click Servicing dot Com lCv Insight on the Spot Products Accidents Auctions Supplier guide SmmT sales figures Sub-Prime Time

CarDealerMag.co.uk | 05

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scrap scheme?

agenda

Complicated, messy and restricted, the UK car scrappage scheme has arrived, but how will it work, who’s in, who’s out and what do people think? Let Car Dealer guide you through the piles of rusty metal

T

he scrappage scheme many in the car industry – ourselves included – wanted is here, but not exactly as we all hoped. As governments have a habit of doing, they added more clauses than a Santa convention – leading to mixed reactions from the trade.

We all thought that the Chancellor would hand out a £2,000 incentive to buyers of cars under a certain CO2 level, and on Budget Day he certainly made it sound like it.

Alistair Darling said in the Commons that he was ‘announcing a £2,000 scrappage scheme’ but the detail that followed from Lord Mandelson’s Business Enterpirse and Regulatory Reform (BERR) department revealed this wasn’t the case. When more information emerged, it transpired the government was only going to stump up £1,000 which had to be matched by the same amount from manufacturers. So – in case you don’t know the detail – this is the lowdown: • £1,000 from the government, matched by a grand from carmaker • Runs from May 18 to March 2010 • Scrapped cars must be 10 years or older, or vans up to 3.5 tonnes (T-reg)

• Scrapped cars must have a valid MOT or be declared SORN • Scrapped cars must be registered on/before July 31, 1999 • Person buying car must be registered keeper and have owned the car for 12 months • Car dealers will do ALL the paperwork • Car dealers will arrange for the old car to be scrapped.

1,500,000

...number of car owners willing to take part in scheme

The good news is that, according to research by Experian, there are apparently 1.5m car owners in the UK that would be willing to take advantage of this scheme. The company found that of the UK’s 35m cars, 7.1m private cars are eligible for the scheme. Of course, it’s not quite that simple as 15 per cent of those are worth MORE than £2k, so scrapping won’t be of any interest.

But there are still a huge amount of people out there that are interested. Motors.co.uk, Motoring.co.uk, BuyYourCar.co.uk and Auto

Trader have all reported huge increases in traffic following the announcement. In fact Auto Trader saw a 113 per cent surge in visitors the day after the budget with a 74 per cent increase in new car searches.

That news comes as its own research suggests a third of all motorists reckon they’ll be encouraged to buy because of the scheme.

Matt Thompson, marketing director at Auto Trader, said: ‘The fact that our new car homepage visitors increased by more than 100 per cent on the day the new vehicle scrappage incentive scheme was introduced highlights the appetite among motorists for this.’

But not everyone is happy. Motorpoint – the independent used car dealer group – originally supported the scheme, but when it saw the detail made a dramatic about face and called for it to be abandoned.

‘It’s nothing more than a clever ruse by the car manufacturers to off-set recent price hikes at the taxpayers’ expense,’ said a statement from the dealer.

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Q&A Sounds simple to me: Darling’s giving my customers £2k off new cars, right?

No he isn’t. He’s giving £1k – your manufacturer has to match this with their own cash. Don’t be fooled by what he said in the Commons.

The cheeky… anyway, who’s eligible?

Any customer agreeing to scrap a car registered on or before July 31 1999 (T-reg or earlier). And, buying a NEW car.

That’s all, new cars? Not just green ones? Nope, any new car is eligible – a CO2 limit is not imposed. What’s more, the government has also given the CV industry a boost, by saying that vans up to 3.5 tonnes are eligible, too.

So, no nearly-new cars included in the scheme? Nope. Only cars registered after the scheme starts. Excludes pre-reg models sitting on your forecourt.

What about the old shed they’re scrapping? Well, it’s not necessarily going to be a shed – all cars must have a current MOT, road tax and insurance. They must have also been owned by the person who is doing the deal for a year or more.

Hang on… this sounds like it could get a bit complicated? It is, rather. And the government is putting the onus on YOU to make all the checks – ensure the car and customer qualify, that the documentation is in place, that it’s being used only on new cars, and so on. This means you’ll have to think about a staff training scheme.

MD David Shelton admitted he was initially delighted that the government had taken action to support the UK car industry. But, after reading the detail, he denounced it as ‘nothing short of collusion between the government and the manufacturer’.

‘We launched Motorpoint just over a decade ago, determined to end the so-called ‘rip-off Britain’ car buying culture, by wrestling control away from the manufacturers and their dealer networks when it came to buying new and nearly new vehicles,’ he said. ‘Unfortunately, the car scrappage scheme would appear to be a return to the bad old days.’

He’s not the only one who is cheesed off. ACFO chairman Julie Jenner said the fleet body is disappointed too. It had wanted to see the scheme extended to cars up to four years old, not just new ones. What’s more, it had also aimed for a CO2 emissions cap of 165g/km or less – again, something that didn’t materialise.

‘We fear that by only including new vehicles within the scrappage scheme, demand for

ex-company cars and vans will suffer, as consumers turn their attention to new cars to obtain the incentive,’ she said.

But what did other’s in the industry say?

Here’s some of the reaction reported at CarDealerMag.co.uk in the hours and days after the announcement was made.

Paul Everitt, SMMT chief executive The Society of Motor Manufacturers and Traders (SMMT) has welcomed the government’s introduction of a scrappage incentive scheme to kick-start demand in the car and van market.

This is good news for consumers and will get people back into showrooms, kick-starting demand in the market. The scheme recognises the economic value of the motor industry and we are determined to make it a success.

Daksh Gupta, Marshall Motor Company CEO I am delighted to see that the government has responded to the growing demand for this >

What do I do with the old banger?

You HAVE to get it scrapped – that means, at an approved centre, who’ll give you a certificate. This will form part of proof to the government that you’ve done everything correctly, and can have your cash.

When does it all kick off?

Once again, as with the 15 per cent VAT situation, Darling’s not said the scheme must start right away. It commences in mid-May, and runs until March 2010.

Know what? All this is not for me.

Fear not – the scheme is voluntary. But, if you’re thinking about it, get in fast. There’s a £300m cap from the government, matched by the industry – which means, effectively, it’s limited to 300,000 sales. Once it’s gone, it’s gone. And, if it’s all gone before next March, then that’s it. No more cash will be pumped in.

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agenda WHO’S IN, WHO’S OUT?

sort of scheme, which will help many of our customers and all sectors of the industry. We view it as an opportunity.

Neville Briggs, Pinewood MD If the new scrappage scheme proves as successful in boosting sales in the UK as similar initiatives have in other countries, then dealers are likely to see a sudden swing in the emphasis of their business away from used car sales and aftersales back to new car sales. They have a very short time to ensure they have the best possible sales and marketing initiatives in place in order to maximise the opportunities that the scrappage scheme will present.

John Given, Manheim group sales director We welcome any initiative that stimulates the new car market. The scrappage allowance could reduce our lower-value part exchange volumes coming into Manheim Auctions, but we do not believe this impact will be significant.

Tony Wilson, Klarius Group chairman

The following makers had signed up to the scrappage scheme at the time Car Dealer went to press: • Alfa Romeo • Audi • BMW • Chevrolet • Citroen • Fiat • Ford • Honda • Hyundai • Kia • LTI • Mercedes-Benz • MINI • Nissan • Renault • Skoda • Smart • Toyota • Volvo • Volkswagen For an up-to-date list see CarDealermag.co.uk and search ‘Who’s Signed Up’. And for full details on what each maker is offering, see our dedicated scrap section.

a scrappage scheme, however we hope that today’s announcement by the government will provide a boost to new car sales market and in turn have a positive impact across the automotive retail industry.

Prof Stephen Glaister, RAC Foundation director Currently, the vast majority of cars are still on the road at 10 years old. Indeed, at 14 years old, half are still on the road. The scrappage scheme risks consigning a lot of perfectly good, and relatively clean, vehicles to the dustbin. While the announcement is good for motorists and the motor industry, if it does not encourage people to buy green vehicles it is a missed opportunity as far as the environment is concerned.

Andrew Davis, Environmental Transport Association director It’s not just greenwash, it is hogwash. Many 10-year-old-cars have plenty of life left in them, so from a climate perspective, to scrap them is money poured down the drain.

Faye Sunderland, editor TheGreenCarWebsite.co.uk Without setting a limit on the CO2 emissions of the new cars bought under this scheme, it makes a mockery out of the government’s said commitment to developing this country as a leader in green motoring. The scrappage incentive is now meaningless as it will not necessarily encourage the sale of greener cars.

Richard Mason, Motoring.co.uk MD This scheme is the shot in the arm the industry needs to boost new car sales. With a limited budget and a deadline of March 2010 to claim – and recognition of the fact that some desirable cars have a waiting list of up to nine months – now is the time to act to take advantage of this attractive offer. [CD] We’ve covered the scrap scheme’s every turn on our website. Find out what’s happening and give us your opinion at CarDealerMag.co.uk

Making money available to stimulate the purchase of new cars in the UK is a false economy; it is a waste of public money, and contrary to recent positive coverage, did not benefit the German car industry when it was implemented there. The UK has many hundreds of thousands of people employed in the automotive aftermarket industry. From roadside recovery, auto factors and distributors, to repair shops and fitting stations we have a major employment sector designated to the support of older vehicles.

The Institute of the Motor Industry There have been many arguments from across the sector for and against the introduction of

08 | CarDealerMag.co.uk CarDealerIss15.indd 8

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SsangYong will get through this trouble As D-Day for the marque approaches, its UK chief talks exclusively to James Baggott SSANGYONG’S UK boss has told Car Dealer he is confident the firm’s restructuring will be successful.

The brand is currently in ‘receivership’ in Korea with appointed court staff looking at the firm’s restructuring plans.

Rather than being a conventional UK form of receivership, the South Korean system is modelled on US Chapter 11 status allowing the maker time to restructure.

The firm’s plans will go before the courts on May 22 – D-Day for the brand – where the future of the company will be decided.

‘I’m confident that the plans put in place will be successful,’ Paul Williams exclusively told Car Dealer. ‘We wouldn’t be having this chat now if I didn’t think that was the case. There are some big, big things in place for SsangYong – we just need to get over this hurdle first. I am quietly confident the restructuring procedure will work.’

Williams has just returned from a briefing in Korea where he saw the new C200 – the firm’s Qashqai rival in all-but-productionready form – and he said the mood there was upbeat.

The UK chief also gave us more detail on the C200, pictured below, which will be available in front and all-wheel drive versions when it arrives here in time for the March 2010 plate change.

‘It will be a rival to the VW Tiguan, Ford Kuga and Nissan Qashqai,’ explained Williams. He added there will be a choice of a 1.8-litre turbocharged petrol engine and a 2.0-litre diesel unit

Burgess Just checking Beware of the scrappage scheme scam in the making

T SsangYong’s UK chief Paul Williams with six-speed manual and five-speed auto options. Plus he revealed a hybrid diesel and electric unit is also ‘not far down the line in terms of development’.

‘Dealers have a lot to look forward to in the medium term,’ explained Williams.

‘There are no doubts we’re having a tough time of it – everyone is – but it’s not as bad as press reports suggest.

Williams added that he was confident the brand’s UK network of 50 dealers could weather the current economic pressures and revealed the marque had lost only two outlets to the credit crunch. ‘One has stayed on in an aftersales capacity,’ explained Williams. ‘And the other went into administration. But we have recently taken on two new dealers.’

Investigation into car dealers after complaints USED car sales are to be investigated by the Office of Fair Trading as complaints have rocketed in the last year.

The body wants to understand why so many complaints are occuring – and is focusing its attention on dealers.

Results of the investigation may even lead to tightened legislation and stricter enforcement.

The surprise announcement follows more than 68,000 customer complaints to Consumer Direct relating to the sector in 2008.

OFT officials say defective vehicles, services and misleading sales topped the list of gripes and said the sector

has featured heavily in the list for the past three years.

Car clocking alone is estimated to cost used car buyers £100m, from a market said to be worth £35bn.

Now, it seems the OFT’s patience has run out. John Fingleton, OFT chief, said: ‘Buying a second-hand car is a major and potentially difficult purchase, given the fact that many consumers lack the necessary experience or knowledge to make an informed buying decision.

‘We aim, particularly given the current financial climate, to look at the entire process for consumers.’

he industry’s debate on the government’s scrappage scheme has yet to subside, and this includes my team at HPI who have cause for concern over a new scam dealers could now be open to involving stolen V5s.

While the scheme aims to revive the car market and remove older, less eco-friendly cars from the road, it is likely to attract opportunistic criminals as well as the legitimate car buyers.

Never ones to miss a trick, used car criminals could make a tidy profit by swapping old for cut-price new vehicles using stolen V5s ‘Never ones to to prove they’ve been the registered keeper for at miss a trick, used least 12 months. car criminals The proof of a year’s ownership is the prerequi- could make site for qualifying for the a tidy profit discount and as yet there is little or no means for swapping old policing this. cars for new The DVLA first announced that there with stolen V5s.’ were a large number of stolen V5s in circulation in 2007.

Although the AVCIS, the Association of Police Officers Vehicle Crime Intelligence Service, has recovered in excess of 700 vehicles with a total value exceeding £6.5m, they recently expressed concern that there may be a significant number of these documents still in circulation.

If you don’t know what to look for, keep your eyes peeled for V5s with a slightly different background colour on the Notification of Permanent Export (V5C/4) tear-off slip on the second page, which looks mauve on the front and pink on the reverse.

On legitimate documents they should be mauve on both sides.

An added level of protection however is the HPI Check, the only service that provides a Stolen V5 Document Check as standard.

Those of you who don’t use it could find that manufacturers won’t stump up the money for the fraudulent vehicle, leaving you to pick up the bill.

Remain vigilant to reap the benefits rather than getting taken for a ride. Never take a V5 at face value and get all vehicle documents checked.

Who is Daniel Burgess?

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

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dashboard

Chrysler dealers get help after collapse RMIF steps in with advice after bankruptcy announced in US CHRYSLER car dealers in the UK are being offered help and advice following the collapse of the manufacturer in the US. The RMIF have moved to offer its members support following the news the carmaker filed for bankruptcy in America.

Chrysler has now entered Chapter 11, which allows it breathing space from creditors while it begins a Chrysler has entered Chapter 11 in the US restructuring process. It will carry on trading during this period.

Chrysler’s CEO Bob Nardelli stated that As part of this restructuring, Chrysler has Chrysler dealerships ‘remain open for busiformed a ‘global strategic alliance’ with Fiat ness serving our customers’.

SpA, to form a ‘vibrant new company’.

‘All vehicle warranties will be honoured This means that Chrysler will get access without interruption and consumers can to Fiat’s smaller, greener cars and engines – continue to purchase our vehicles with and also ensures new uses can be found for complete confidence,’ he said, when the idling Chrysler plants. news was announced.

This means much-needed, small ecoInterestingly, the official statement says it friendly Chrysler models and diesel was Chrysler that approached Fiat – more hatchbacks are likely to come on stream than a year ago. It also confirms it was the in the near future.

Sell Chryslers? What do you think? Text ‘Although UK Chrysler dealers will be DEALER then your comments to 82085 concerned about the manufacturer’s move Texts cost your normal rate into bankruptcy protection, it will give lack of agreement between its lenders that dealers time to assess their own situation led to Chrysler being made bankrupt. and make any changes they feel necessary Nardelli’s not happy about this: ‘I am to secure the future of their own businesses,’ personally disappointed that Chrysler has said RMIF director Sue Robinson. filed for Chapter 11. This was not my first ‘The NFDA is in the process of contacting choice.’ all its Chrysler dealer members so that they The bankruptcy period will be swift, know that support and advice is available if though. It has to be: all the company’s required.’ manufacturing plants will be idled while it’s Such help will be comforting to the under way. Once everything is sorted out, nation’s Chrysler, Dodge and Jeep car the plan is for the Fiat-Chrysler alliance to dealers, who are understandably concerned emerge. at proceedings in the US.

GM axes Pontiac, jobs and dealers in the US GENERAL Motors is axing 21,000 jobs in America and has killed off the famous Pontiac brand. The moves are to help the manufacturer ravamp its business in time for a June 1 deadline imposed by the US government.

This story was reported first at CarDealerMag.co.uk – Updated daily GM needs to complete its ‘restructuring’ by then to avoid bankruptcy protection like its rival Chrysler. GM is in desperate trouble as its brands have been hit by falling sales across the world. In the UK it owns Vauxhall, Chevrolet and Saab.

The carmaker has said it will shed Pontiac by the end of 2010 to focus on its core US marques – Chevrolet, Cadillax, Buick and GMC. GM’s boss Fritz Henderson said it was tough axing Pontiac – best known for the Trans Am and Firebird – after 83 years.

‘We didn’t think we had the resources to get this done from a product perspective,’ he told the BBC News website.

GM also said it will be cutting dealers in the US by a drastic 42 per cent – from 6,246 in 2008 to 3,605 by the end of 2010.

Tew Net gains I’m seeing signs of an upturn around the corner. Are you?

A

re we seeing an upturn under way? Certainly, people have more disposable income right now. Mortgages cost much less a month for those on tracker rates – sometimes, the savings run into hundreds.

Great, you’re thinking. They can spend that cash on a new car from me. As we both know, there are all sorts of calculator tools to show people how affordable cars are.

We can prove to them that monthly payments are manageable. Job done. So, what’s stopping them? Job uncertainty, that’s what. People may well have more cash at their disposal than this time last year, but they’re also carrying many more doubts about their employment.

Ease those worries. How? With credit insurance. Yes, ‘The sales it may have got a bit of a propositions bad press, but it’s also a way of reassuring people are coming, that, if the worst should happen, they’ll still be able just don’t let to meet the payments. them slip Increasingly, the desire into your is there to buy a new car, but there’s also the caution competitors’ element coming in too. hands?’

Which means people may just be more open to the idea of such insurance products.

Last year, they couldn’t see the point in them, as all was rosy. In today’s more sober and savvy times, maybe it’s time to forget that negative response you got last year, and review how you retail credit insurance.

There’s lots of talk of an upturn being fed through to me from some quarters. I’m speaking to guys all the time who are saying they’re having record months. This is something that carmakers as a whole have reported back in recent months – and, in the case of brands such as Hyundai, it’s all thanks to the scrappage scheme. This is interesting for me.

I’ll be following the impact of it closely – particularly how the deals work out, with respect to monthly payments.

The big question is whether those who are driving a 10-year-old car can afford the finance on a new one: they may not be as credit worthy as those who would naturally buy such cars. Car dealers need to be aware of this – the customers they’re going to be seeing won’t be as easy to sign up as they’re perhaps used to. They’ll need to use the full breadth of their sales tools box to get some deals right – including credit check systems, finance calculators and what not. The sales propositions are coming – just don’t let them slip into your competitors’ hands.

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

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

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Fiesta takes number one spot from Golf

Henstock Auction stations Will used car price rises continue much longer?

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n the brave new world that is post-Budget and postEaster, should we all expect used car values to keep on climbing, settle down or even fall back? We have now had five consecutive months of price rises across the widest basket of cars and used values have more or less recovered most of the ground they lost last year.

Taken in isolation, the first quarter performance has been exceptional, with rising values, high conversions and plenty of confidence in the used vehicle market. At the time of writing, April looks like delivering more of the same.

But do questions remain over how long this recovery will continue? Used cars surely cannot be completely isolated from the economic conditions and as the recession continues, pressures on average price may increase.

‘There appear So what has been driving to be plenty of the used car price? The recovery in the used car professional market has been based on buyers ready to a genuine shortage of stock invest between and sustained demand from the professional buy- £70-£80k to buy ers reading this magazine – who are, in turn, reflecting supercars.’ the interest at a retail level from motorists. It’s simple supply and demand and while these factors are in play we are likely to see values remain relatively high.

What is perhaps surprising is that there appears to be plenty of money available at the top end of the market as well as in the volume and budget sectors. A recent prestige car sale section held at our Enfield auction centre achieved an average value in excess of £40,000. That’s not the sort of money you spend on a whim. There appear to be plenty of professional buyers ready to invest between £70,000 and £80,000 to buy Bentley, Ferrari and Porsche...

The manufacturers sales programmes have returned excellent results in the first quarter, so franchised dealers seem to be getting plenty of interest from motorists on used cars, even if the new car market remains difficult.

So, overall it is encouraging that the used car and van markets have performed spectacularly well this year and demand remains much stronger than it was for most of 2008. But despite this, there are concerns that there is a little more fragility creeping into the market than previously seen. Overall the message we are giving our customers is to remain cautiously optimistic – enjoy the demand while it continues, but stay close to the market, read the conditions and be prepared to adjust strategy if required.

Who is Simon Henstock?

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

Ford Fiesta overtakes the Golf as best-selling model in europe FORD’S Fiesta has taken the overall European sales number one slot from the Volkswagen Golf.

A massive March sales increase of more than 15 per cent has seen the Ford supermini conquer in an otherwise depressed market.

First quarter European sales are down by 16.9 per cent, reports JATO Dynamics, as the recession bites further into car retailing.

This contrasts with the huge success of new car scrappage schemes, as seen in Italy and, in particular, Germany.

They have bolstered the Ford Fiesta’s fortunes in those markets, although JATO does point out that it has sustained sales in the UK, too – despite the lack of a scrappage scheme up until now.

‘It’s interesting to see the continued effect that the government scrapping incentives have had in certain markets,’ said JATO’s David Di Girolamo.

He points out that several other small cars have risen in the top 10 rankings,

including the Volkswagen Polo and Fiat Grande Punto. Sales of the Fiat Panda have also grown by a staggering 62 per cent.

‘The Panda is a perfect example of a car that can benefit from today’s market conditions. It’s a very affordable car to buy new. It’s an easy step-up into the new car market for those who have been encouraged to scrap their old cars,’ said the JATO expert. ‘We will track the markets with interest, as it will be important Sales figures on fourth working day of the month at CarDealerMag.co.uk to understand if this is a short term reaction or if it will have a prolonged effect.’

VW shouldn’t be too upset, though. It remains Europe’s best-selling car brand. And the Golf still leads the year-to-date tally – from the Fiesta, as well as the Peugeot 207, Vauxhall Corsa and Ford Focus.

VW Golf GTI road test, p32 April SMMT sales figures, p81

Irish eyes are smiling on Kia as it looks to expand KIA is cranking up the volume for its Northern Ireland operation. Paul Philpott, Kia chief in the UK, has told Car Dealer that Downeys has opened up in Newtownards to join other outlets in Lurgan, Coleraine and Belfast.

The Korean company is also looking for a dealership on the West coast of Ulster and an announcement will be made soon.

‘These are exciting times for Kia in Britain,’ said Philpott who anticipates a three to four per cent upturn in overall volume for the company even though the all-makes market in the UK is down by almost 24 per cent.

The Kia boss says growth in the Province will be fuelled by the value for money factor, superb warranties, and the new Soul SUV, pictured.

‘The Soul is a very exciting product,’

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-L says Philpott. ‘It provides a unique look and style for Kia and is bringing customers to the market who would never have considered a Kia before. They are taking Soul to their hearts and discovering the quality and exciting design of the car.’ More than 5,000 Souls been sold since launch – 13 per cent higher than Kia predicted.

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YourCarLoan

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

w: www.codeweavers.net/yourcarloan e: enquiries@codeweavers.net t: 0870 443 0888 f: 0870 443 0889 CarDealerIss15.indd 15

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Citroen and Ford talk the Autotorq Richard Aucock reports on carmakers signing up to web specialist

Rapp Marketing So how many extra cars will this scrappage scheme shift?

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ith the government’s new-cars-for-old scheme up and running, there’s only one question that matters: how many extra cars will it shift?

And here at Motors.co.uk, we’re as keen as anyone to see the answer come back ‘Loads!’ That’s why in June we have an introductory offer, giving dealer customers the chance to list their new cars with us for FREE! On the face of it, the government’s car scrappage scheme couldn’t be easier. Buyer pitches up with 10-year-old car, the Treasury stumps up £1,000, the dealer matches that... and happy owner drives towards sunset, having scored a £2,000 discount on their shiny new car.

But it’s become more involved as carmakers – and dealers – compete to edge their deal ahead of the rest. Nissan, for instance, will give at least £2,000 in return to any roadworthy car that’s pre-2001 if it is swapped for a new Britishbuilt Nissan. Citroen jumped the gun by offering £2,000 discounts on half of the cars in its big model range before the Budget brought us cash-for-scrap cars. Ford, Vauxhall and Skoda are among others pitching in, too.

In truth, there are so many different cars and deals on offer that buyers might lose their way. So, to keep confusion at bay, listing your new-car stock on Motors.co.uk gives you ample space and scope to explain what you’re offering.

It will also enable you to draw a clear line in the customer’s mind between new cars (which do qualify for the ‘scrappage’ discount) and pre-registered and nearly-new cars, which do not. Listing the various types of deal up for grabs will allow your customers to get their heads around them. The more confident they feel about the deal, the more ready they’ll be to buy. So if you already have your used-car stock with us, there’s sense aplenty in taking up our offer. If not, maybe now’s the time to come on board.

Finally, let’s not forget used car sales. These give plenty of dealers a reason to smile, while some report that the biggest problem they face is not in finding customers, but in finding top-notch late-plate cars to sell them. While the scrappage scheme will mean some customers switch from nearly-new to new, there are no signs as yet that all-up demand is slackening. Have a good month – and sell well.

‘In June, we have an offer that gives dealers the chance to list their new cars with us for free.’

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

WEBSITE specialist Autotorq is continuing to snap up big car manufacturers on long-term contracts – and it says this is down to its leading-edge online technology at the right price.

In spring, Citroen agreed a new three-year deal with the company. This saw every one of the carmaker’s 260 dealer Autotorq has signed a three-year deal with Citroen websites, plus the national used car programme AND used van creative delivery,’ which enhances the locator, migrate to car-buying customer’s experience.

Autotorq’s systems.

He said the company reviews its dealer Less than a month later, this was followed websites against other brands and more

by Ford. This deal was even bigger – general website stars, such as Amazon involving 400 dealer websites, and and M&S. ‘It’s this approach and methodolstretching across seven European countries. ogy that helps us deliver a more successful The scale of the tie-up is enormous. website, and makes the end customer It’s Autotorq’s technical prowess that’s more likely to buy.’ leading this drive. The company says it can offer complete integration with both carmaker websites and systems from other companies. It can tie disparate systems together, creating a single product that is highly automated, fast, slick and, vitally, easy to use.

Particular emphasis has been placed on perfecting car dealer inventory upload, used vehicle data enrichment, plus lead management and promoting big national offers.

What’s more, from the car buyer’s point of view, everything is just as slick. Indeed, a priority of the Ford project was for customers to not even notice they’re leaving the Ford portal and switching to the dealer site.

A tricky balance – one that calls for, explains Autotorq’s Branson Atterbury, ‘our

Rover’s return in UK ROVER may return to the UK as soon as early next year – using the name Roewe, with a sleek Audi A4 rival. SAIC Motor Corp, the Chinese company that bought the rights to the cars, plans to import a reengineered version of the Rover 75.

The company, which also owns the MG name, will sell this in both saloon and hatchback form.

The Roewe will use a revised version of the old K-Series engine, called N-Series. This will be turbocharged to help performance and CO2 emissions.

400

...number of Ford websites looked after by Autotorq

In the end, though, for car dealers, it all comes down to saving money, while offering the best all-round solution. ‘Our experience shows that many dealers were spending significant amounts of money maintaining a standalone website,’ said Autotorq director Jacqueline Mitchell.

‘The solution we have provided ensures that they get the very best functionality and creative design, all endorsed and approved by the manufacturer – but also, significant cost savings too.’

one-77 is not a car, it’s art ASTON MARTIN has finally unveiled its £1m One-77 concept at a posh car show in Italy.

Covers were pulled off the car for the first time in public at the Lake Como event – and what lies beneath sure is dramatic!

Speaking of the new motor, Aston Martin chief Dr Ulrich Bez said: ‘The One-77 demonstrates the unique capabilities of our company – it encompasses engineering excellence with a great passion from our engineers, designers and technical partners.

The car surpasses any Aston Martin that’s gone before it,’ he said. ‘It lifts engineering into the realm of art.’

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Ron Dennis: We’ll be out of crunch by 2011 Harrison Specialist Automotive Finance

Exciting developments in the world of finance

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ll businesses change during a recession, whether this is voluntary or imposed by market conditions.

Our industry is no exception. Dealers have had to become increasingly innovative to secure car sales, and showrooms and finance companies are working harder to sell finance to customers who are tightening their purse strings.

But the flexibility and bespoke nature of dealer finance has meant that it has remained competitive. New car finance penetration is currently at 52.9 per cent. Our industry has changed and so too has Specialist Automotive Finance – the FLA’s initiative to raise consumer awareness of dealer finance and improve finance knowledge ‘Dealers have of our industry. had to become In past months I have updated you on the FLA’s increasingly SAF ‘armoury’ including innovative to our consumer guidance website (Financing Your secure car Car) for would-be car sales in the buyers interested in finance; the free-of-charge recession.’

SAF competence test – core to assessing and improving staff knowledge of finance; and the downloadable SAF reference material to help our industry stay abreast of regulatory changes linked to motor finance.

From August 1, SAF will enter an exciting new phase.

SAF Approved will extend SAF-certification from individual staff to dealerships. It requires all customerfacing staff who interact with the public on finance and insurance matters to have successfully completed the SAF competence test. Once approved, dealerships will receive a SAF-branded welcome pack containing useful material to help talk to customers about finance as well as recognising a dealer’s improved professional standards. To make it even easier to get involved in SAF, the FLA is providing admin support to help large dealer groups register their staff for the test.

To coincide with the launch, the FLA’s SAF website – SpecialistAutomotiveFinance.org.uk – and consumer guidance site (FinancingYourCar.org.uk) will be redesigned and given a fresh new feel, making them easier to navigate.

SAF has made good progress so far. We have 517 dealerships registered including 13 of the top 20 groups. I hope I can count on the support of your dealership to raise the profile of dealer finance even further.

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 Mclaren’s big plans for an all-new roadcar MCLAREN Automotive chief executive Ron Dennis says the UK will be over the current recession by 2011.

‘We truly believe that markets will have recovered at some point in 2011,’ said the boss of the new supercar division.

The former F1 boss said the company has conducted extensive analysis, as part of the risk-limitation it has conducted in launching its new McLaren’s Ron Dennis and Richard Lapthorne Ferrari-challenging supercar.

This is why the company has chosen 2011 to launch the new McLaren Martin Whitmarsh – and becomes chief F1 successor, codenamed P11. executive of the new independent road ‘We’ve conducted extreme prudence car division. with respect to world markets,’ said Although he attended the Australian Dennis. ‘Some may say it’s an odd time to be GP, Dennis said he stayed at home for the launching a supercar, but markets won’t be Malaysian GP – and ‘suffered no withdrawal nose-diving for the rest of time. symptoms’.

‘Our entrepreneurial aspect means we truly believe markets will have recovered by 2011.’

Indeed, by 2015, McLaren Automotive will ...number of cars McLaren will be selling a year by 2015 be selling 4,000 models a year, from a range He has big plans for the new supercar of cars that will quickly broaden the brand’s division, which is hoped to soon secure scope. This is rumoured to include a rival to £250m of investment. Premium car dealers, the Porsche 911.

In dedicating himself to McLaren Automo- he promised, can look forward to an entirely new approach to car retailing, in keeping tive, Dennis confirmed he’s fully handed with the F1-inspired McLaren ethos. over the reigns of the McLaren F1 team to

4,000

Mclaren dealer recruitment is underway MCLAREN’S rival to the Ferrari F430 will set new standards for performance supercars. Ron Dennis said he’s been guaranteed it will be the greenest and most economical supercar on sale, as well as the safest and most practical.

What’s more, the revolution he plans for McLaren Automotive will even stretch to how the cars are sold.

Car dealer recruitment is under way NOW, as the company gears up for a 2011 launch.

Dennis said that although the cars will compete in the same marketplace as Ferrari and Lamborghini, McLaren supercars will be more exclusive, sold in lower volumes – and priced more expensively.

A brandnew factory

is to be built in the UK creating ‘at least 500 jobs, but more likely 800’.

‘This is a good news story,’ said Dennis. ‘We’re creating an all-new British sports car company.’ He said that the company may become so profitable it could even eventually support the F1 team, rather than the other way around.

Car Dealer has SEEN the car at the launch – a model Dennis said ‘could be driven down the road tomorrow’.

The company has been secretly developing prototypes, and has built 24 running models – meaning it is well on course for a 2011 debut. Details will emerge in the next few months, but for an idea of how it looks, think 21st century McLaren F1.

Br

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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 CarDealerIss15.indd 19

You take the wheel ™

8/5/09 09:45:14

big mike

I feel like a scrap myself – with grey-head Darling!

S

o we have a cash-for-scrap scheme courtesy of Mr Darling’s latest budget – a bid, in the words of government, to assist the motor industry and help it through a difficult time.

How very honourable – but I’m sure anyone working in the car trade, be it new, used or trade-to-trade, such as an auction house, will be feeling more than a little perplexed not least at the Chancellor’s economy with the truth during his budget, but also at the potential ramifications this will have on the car market as a whole.

Excuse me for being serious this month – as I’m sure you’ve worked out by now, I like to raise a titter or two where I can – but this ‘incentive’ has to be one of the most ill-conceived government quangos ever.

First, there’s the mere fact that the announced £2,000 incentive for a punter to scrap their 10plus-year-old car and buy a new one isn’t £2,000 at all, but £1,000 from the government plus a further £1,000 from the participating manufacturer if they wish to take advantage of the system.

Pardon me, but last time I looked the world of car manufacturing was in turmoil. Some of the biggest car companies in the world were teetering on the brink, the less aggressive franchised dealerships were struggling to pay the bills and even a couple of big dealer groups had fallen by the wayside.

This doesn’t happen to companies if they have enough spare cash to knock a grand off for every customer that comes their way, so am I being unreasonable to suggest that a governmentsponsored erosion of profit margin is about as much use right now as offering first-time buyers a tenner off a new home?

I don’t think I am.

What’s even more frustrating is that once you’ve allowed a grand for someone’s ‘scrap’, you have to weigh it in and get it destroyed.

So in effect you give a grand for a part-ex you’re not allowed to then sell on, even if you could

The scrappage scheme has been met with mixed feelings – and Big Mike is distinctly unimpressed...

‘This governmentsponsored erosion of profit is about as much use as giving a first-time home buyer a tenner off the price.’

potentially get your grand back.

Call me old-fashioned, but the way this trade works is that every part-ex has a stand-in value, which is what the salesman who clinches the deal realistically thinks he can get back if he puts the car through the block, or if a little braver resells it himself.

Car dealers, on the whole, are not in the business of giving away money, for despite being unfairly categorised in the same popularity league as traffic wardens and estate agents, the vast majority of us have mortgages to pay, kids to support and food to put in the fridge. Fact of life, simple as.

The scheme will also upset the whole balance of the used car industry, as supply of good older cars will more or less dry up overnight, pushing the prices of those 10-plus-year-old decent cars (of which there are several on the road, as the average age of a scrapped car is about 14 years), while the cheaper end of the market will be bogged down with rubbish.

Think about it – well-heeled owners of old cars can scrap their cherished and well maintained one for a bursary, those who drive all their life in smokey old bang-

ers would never even get the chance, so while all the pristine C-Class Mercs and doctor-owned Volvos that keep the likes of me in business will disappear into a cloud of ferrous oxide, nasty old Escorts and rust-riddled Fiestas will prevail, unaffected by the scrap incentive.

Meanwhile, wealthier punters are being given a free handout if they want a new car, with which they are entitled to go and shaft a new car dealer.

That leaves the new guys missing out on valuable profit, while also nicking customers from used forecourts and throwing the resale values of late model second-hand cars into disarray, which means none of us have anything to cheer about.

Apart from, maybe, my old mate Billy Two Bags (a stalwart of this column), who for once has got the value of his entire stock about right – and he’s owned most of them for well over a year so could potentially chop in the lot!

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 CarDealerIss15.indd 21

8/5/09 09:45:16

Twin Test

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ISLE OF

FIGHt Words: James Baggott | Pictures: Allan Hutchings

The Abarth 500 Essesse and MINI Cooper S are bitter rivals. So much so it led to a seething office row over which is better. To settle the argument we headed to the Isle of Wight to find out. It rained. A lot.

T

he Isle of Wight is a funny old place – if you ever went there on holiday as a kid, chances are the same places you visited are still around, plodding along, selling the same tat, attracting the same people.

It’s small too. At just 23 miles across by 13 miles deep it’s not the place to go if you’re prone to claustrophobia. Thankfully those bonsai tree proportions make it the perfect location for this twin test. With just 140,000 residents, the Isle of Wight is about the same size as a medium city – like Peterborough.

And there’s our logic: City cars to a city-sized island; Small cars, small roads, big fun. Anyway, you catch my drift – really it was just a good excuse to get out of the office.

The island hasn’t got a single stretch of motorway on it. In fact you’d be hard pressed to find some dual carriageway. Bumpy Broads criss-cross the island, intertwined like a cat’s cradle with a smattering of fast, flowing A-roads. Towns and villages are tight and cosy

– the perfect territory for two tiny cars that punch well above their weight.

So what are the challengers? Well, last month I came back from the launch of the Abarth 500 singing its praises. But the problem was, no-one in the Car Dealer office believed me when I said it’s going to give the MINI Cooper S a run for its money.

In Esseesse trim the 500 is a potent little package. The 1.4-litre turbocharged engine produces 160bhp (up from 135bhp in the standard Abarth), 230Nm of torque, and the dealer-fit performance kit adds up-rated brakes and suspension, not to mention those all-important scorpion badges. On the launch, I only got to try the spicier variety on a closed hill climb, but it was enough to whet the appetite – and spark that office row.

The Cooper S is a performance machine that completely belies its size. Its 1.6-litre engine is also blown, helping it produce 175bhp and 239Nm of torque. The benchmark

60mph dash is completed in a sprightly 7.1 seconds – only a good gear change quicker than the lighter Esseesse’s 7.4 seconds. It’s a close match. On paper, at least, the MINI and Abarth are arch-enemies: Similar performance stats, similar size and a seemingly similar target audience.

And if you’re selling either, know this: If a buyer walks in interested in your marque’s offering, they’ve either tested, or are about to test, its deadly rival.

We know our opinion counts for little, but still wanted to know which would get our deposit if we were putting our cash on the line. I did think at one point this test could help you sing the praises of one or the other to potential buyers, which it might, but then we realised you probably don’t need our help selling your own cars. Instead, we pitched these two together purely to settle that inter-office row – and I don’t want to be getting the coffee for the next month... >

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Twin Test MINI COOPER S EARLY mornings and I disagree like chicken madras and children. We just don’t get on. Plus, if I get up before 6am, the battery on my iPhone dies by 3pm – and that puts me in a really bad mood. So, the fact I’m falling out of bed at 5am on Good Friday of all days with a smile on my face shows just how much I’m looking forward to pitching these two cars together.

Small cars, in case you hadn’t noticed, are big news. The credit crunch has crystallised consumers’ views on motoring and they’re ditching their larger, ‘gas-guzzling’ (how I hate that term) motors in favour of smaller, more fuel efficient modes of transport.

But the thing is, not everyone wants a Blu-ecolocomotive model, with one million mpg, that’s as much fun as herpes. There’s still a large bunch of drivers out there that buy cars because they enjoy driving. Okay, so they’re not allowed to admit it, that would be like admitting you like Ian Huntley, but they are out there. So what could be better than a motor that fits the small car mould, but still offers big car performance?

Well, that’d be a sure-fire sales winner, surely?

In fact, the new MINI has been a sales legend since it first arrived back in 2001 (yes, it really has been that long). Ok, so the arrival of the Fiat 500, on which the Abarth is based, hurt it quite considerably, but they’ve still knocked out a fair few

‘Not everyone wants one million mpg and a car that’s about as much fun as herpes.’ of ’em. And you can expect a few more to roll off the Cowley production line this year. Why 2009?

Well, it marks the Mini’s 50th anniversary and that means a party, albeit a German one.

I know it will grate watching BMW flaunt ownership of the original British icon at a huge party at Silverstone – they’ve even got Paul Weller playing, for goodness sake – but then you have to admit 50 years is quite an achievement.

And without BMW there’s a good chance the rebirth of the legend wouldn’t have happened.

It could easily have ended up in the lap of some small British maker in a shed that would have knocked something together with a glue gun and cardboard. And that would have been a disaster. Instead the Germans – like they do – snapped up the brand and set about engineering a car that is homage to the original with a new charm that captured new buyers.

Sat waiting for the ferry in this bumblebee spec Cooper S I can’t help thinking what a good job the Huns did. All the clichés ring true: small on the outside, big on the inside; wheel-in-eachcorner handling blah; classy BMW build quality, blah, blah. It’s boring because you’ve heard it so many times, but that’s only because it’s true.

After 45-minutes making bow waves in a sheet glass-smooth Solent we dock in Fishbourne, and

prepare for 12 hours of enjoying these tiny terrors. First stop is an eerily deserted Needles park at Alum Bay on the west side of the island. It’s half nine and we need filling up, but nothing’s open. A you’re-not-from-round-here local points us in the direction of a Chinese restaurant that does full English for £1.99. Told you this place was weird. Three plates of good food and a couple of rounds of coffee later, snapper Allan, Dunc and I are ready to battle the mist.

James runs his iPhone battery down; All aboard for the Abarth; Dunc stretches 500’s legs

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We head off anti-clockwise around the island and enjoy the A3055’s charms. It’s a fast crosscountry stretch that reminds me of Wales. I’m slotted behind the wheel of the MINI and having fun. The 1.6-litre unit is an absolute peach, producing punch that belies its size. On boost, the rush of power is progressive and stringing these long straights and tight turns together is immense fun.

With the mist and fog rolling off the English Channel, we near the southern most tip of the island and the roads dampen as squally showers upset our tempo. Putting 175bhp through the front wheels is never an easy task, but when the Tarmac’s as greasy as this, the MINI’s steering becomes five-year-old-on-two-packets-of-Skittles lively. There’s a whiff of torque steer when it’s dry, but in these conditions it stinks of it. >

CarDealerMag.co.uk | 25 8/5/09 09:45:24

Twin Test

But then I quite enjoy steering that dances in your hands. It’s character building. On country roads there’s little to separate the Cooper S and the following Abarth. On a straight they’re neck and neck and in the corners there’s little to separate them still – it’s more about how each car makes you feel when you’re behind the wheel.

The MINI is undeniably classy. The interior of our test model was superb with leather seats and a quality dash. I’m not massively keen on the layout – do you really want everyone in the car being able to read your speed off the huge centre dial? I know I don’t.

And I don’t find the seats hugely comfortable.

I’m lanky tall which means I find most cars uncomfortable – it’s not unusual for a seat to send my thighs to sleep within five miles, and this MINI is no different. That’s not to say they’re bad – fellow tester Duncan had no such problems.

On these bumpy B roads the MINI is certainly the more refined of the two. It’s still a bumpy ride – but nowhere near as bad as the Abarth’s pogo-like temperament – and in town it’s perfect. Visibility is superb, and with stop-start technology cutting the engine every time you slot it in neutral at a standstill, it’ll return 45mpg on the combined cycle.

We head to the Blackgang Chine theme park for some pictures in front of the attraction’s giant pirate statue and, as Allan battles the weather, Dunc and I swap opinions on the two contenders. Both are entertaining and frustrating us on equal levels – and we still can’t decide

between them. Usually a car stands out on a test like this pretty soon, so this really is close.

Pictures in the bag we carry on with our anticlockwise tour of the island heading towards the postcard resort of Ventnor. Visibility is down to a few feet as the fog thickens to cotton wool density and HGVs take us by surprise as they appear out of the milky soup. Pottering through Ventor’s tight streets, it’s instantly apparent why buyers pick small cars for towns and cities.

They make light work of the stop-start progress and sat-nav-induced three-point turns. A Range Rover would be a nightmare on this island, in fact it would probably tip a corner into the sea.

‘Power is instant with an addictive bark from the twin exhausts as the revs rise – it’s got quite some soundtrack.’

While trying to capture a dramatic snap of the MINI on a slipway, poor Allan gets a soaking from a giant wave. But the best bit is I’ve caught it You’ve Been Framed-style on camera – check it out at CarDealerMag.co.uk if you need cheering up in the editors’ blog section. We dry Allan’s shoes and socks in separate cars (fortunately I don’t get the socks) and decide to find a café for lunch. Over baguettes and sticky chocolate cake we try to separate the two. ‘It’s not easy,’ says Dunc. ‘I like them both for different reasons. The MINI is more entertaining to drive, but then the

‘Ferry’ good photo (boom boom); MINI gets that sinking feeling; and cars with giant (not James)

Abarth sounds better. Looks wise I prefer the Cooper S, but the 500 handles brilliantly. I still can’t decide.’ He can certainly see why I was so impressed by the Italian at its launch though.

‘I prefer the MINI,’ adds a still dripping wet Allan. ‘The heater’s better.’

ABARTH 500 ESSEESSE A change of cars should sort this out. Let’s see what the little Abarth can do. In the isolation of a closed hill climb, a car is always going to excel.

A manufacturer isn’t exactly going to let hacks loose in a car on a surface or circuit that does anything but paint it in the best possible light. I wouldn’t be surprised if the Abarth press office had scoured the country for the right location to launch its new baby for months, analysing bump-o-graphs and camber changes. Or is that a bit cynical?

It might be, but I sure don’t remember this little car being this hard. It’s as if the shocks have been packed with sand from one of those tubes being flogged on the side of Bembridge beach. The Isle of Wight is anything but smooth, a sweeping generalisation I admit, but it sure highlights the Abarth’s firm dampening.

Luckily I’m distracted. The Abarth’s 1.4-litre turbocharged engine, with it’s dealer-tuned Esseesse kit, is a gem. Growling and snarling under stress, it easily keeps up with the MINI, despite giving away 15bhp. Power is instant and continuous, creating an addictive bark from the twin exhausts as the revs rise. It’s got a great soundtrack too, even at tick-over it burbles away like a boat.

But it’s not quite as planted as the MINI. It just feels a little lighter in the bends. It doesn’t help that you sit higher, perched on the sports seats.

They’re hugely comfortably (no sleepy thighs here), but the steering wheel isn’t angled quite right and the driving position feels a little alien. Couple this with steering and a >

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8/5/09 09:45:27

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Twin Test gear change that are not weighted as well as the MINI and you could be left a little disappointed.

But I’m not. And I think that’s thanks largely to one thing: TTC – or torque transfer control.

The Abarth engineers have fitted a clever set of electronics that replicate a limited slip differential to the 500. Don’t ask me how it works – it’s complicated – just ask me how it feels. Brilliant.

On these damp roads, with TTC engaged, the Abarth seems to conjure up more grip and drive than the MINI. There’s no dancing steering out of bends as the front wheels scrabble for grip, and torque steer is practically eliminated.

On the launch they demonstrated the system

‘It’s attractive to the wrong sort of person. A baseball cap-wearing, Red Bulldrinking sort of person.’ on a figure of eight, with the front running wide with the system off and completely controlled when it was on. ‘Sebastian Loeb with it on, Sebastian Learner with it off,’ quipped the instructor. Thanks.

TTC is certainly no gimmick. It works. And in this company, testing two cars with similar power outputs back to back, it’s impressive.

The interior of the Abarth is good too. It’s a pleasant take on the original 500 and is suitably different to the MINI. Fit and finish is top notch and the quality of materials satisfactory.

However, comparing it to the German leaves it lagging behind. But only just.

Cooper S in its natural habitat – town; Pole position for the ferry home; and poorly-parked Abarth

It’s the looks of the Abarth I really can’t get on with. It’s just a bit loud for me – and this is coming from a Focus ST owner. I like body kits, spoilers and sports stripes, but for some reason the Abarth doesn’t quite work.

It’s attractive, but to the wrong sort of person.

A baseball cap-wearing, Red Bull-drinking, Drum and Bass-loving person. I absolutely love driving it, it’s got an addictive exhaust note and I even find it more comfortable than the MINI, but could I own one? I’m not so sure.

After 12 hours circling the island, nearly getting stuck on a sandy beach (see cover) and annoying the locals in Ryde High Street (see below), we head to the ferry for our return journey. I’ve managed to wangle myself the keys for the Cooper S for the trip back, which even though I find it uncomfortable, says a lot.

THE VERDICT THE thing with these cars is they’re in different classes. They might appear on paper to be rivals, but the stark differences are apparent only when you ask yourself who is going to buy one. I know I said earlier that most buyers will likely check out both cars, and they will because

there are such similarities in terms of price and performance, but I just don’t think the same people will be interested in the Abarth that will be in the Cooper S. And as if he knew we needed help making our decision, a fellow ferry passenger’s opinion sealed the deal. Waiting to board we’re accosted by an accountant, late thirties, wife (I think) and two kids in the back of his Merc E-Class. He walks over, admits he’s a petrolhead and tells us he’s had two MINIs. A Cooper S, which he loved, and a Cooper S convertible he loved until someone shouted something about Will Young at him. He sold it a week later.

He’s all over the Abarth, asking loads of questions, wants to know about the performance, which car we prefer, the works. So I ask him: ‘You’re obviously a prospective buyer of the Abarth, would you have one?’

‘No,’ he tells me quite categorically. Why? ‘Just look at it – my wife wouldn’t get in it. It’s too much like a boy racer’s car.’ And he’s right. It might be brilliant to drive, have a superb engine and heritage to match the MINI, but it hasn’t quite got the same class. And that might just be its problem. [CD]

MINI COOPER S Price: £16,575 Engine: 1.6-litre, turbo Power: 175bhp Torque: 239Nm 0-60mph: 7.1s Max: 137mph Ins: 15 Weight: 1,205kg Gears: Six speed CO2: 149g/km MPG: 45.6 (comb’d) Rating: ABARTH 500 ESSEESSE Price: £16,100 Engine: 1.4-litre, turbo Power: 160bhp Torque: 230Nm 0-60mph: 7.4s Max: 131mph Ins: 14 Weight: 1,035kg Gears: Five speed CO2: 155g/km MPG: 43.4 (comb’d) Rating:

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8/5/09 09:45:40

forecourt

370Z

NISSAN

Still unmistakably a Z car, the 370Z has fresh looks and more practicality – like the fact the metal bar in the boot has gone

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It’s got GT-R looks, a greener engine and more performance. Sounds good. We try the new 370Z

N

ow isn’t an easy time to be launching the replacement to the 350Z. Times are tough for us all – but especially for the target buyer of the new Nissan. The 370Z customer is likely to be a white-collar middle manager, earning a sensible wage, 2.4 children and mortgaged up to the eyeballs.

And that means he’s worried. His job is under threat, his house is worth less than a Zimbabwean million-dollar note and the last thing he’s thinking about is replacing his 350Z with the new version.

Tempting these target buyers really isn’t going to be easy. Especially when you add in the financial penalties of buying a sportscar like the 370Z. It’s in the highest road tax bracket – walloping owners with a £400 bill every year, before they’ve even driven it – and it’s juicy too. The new 3.7-litre powerplant might be 11 per cent more efficient than the outgoing model, but that just means it’ll cost you 11 per cent less of a lot. Which is still… a lot.

There’s no doubt about it – the 370Z is going to be a hard sell in the green stakes. Perhaps that’s why the sensible price-tag is all the more important. Starting at just under £27k, it’s a tempting proposition when you look at similar-performing rivals. Take the Audi TT, for example. In 3.2-litre V6 guise it’s £30k. A BMW Z4 35i? £37k before extras. And a Porsche Cayman? You’ll have to find a few hundred quid over £36k – again before extras, and you’ll need lots of those – before you can park one on your drive.

That makes the 370Z look more attractive.

Especially when you can tell buyers that the Nissan is as good, and in fact better in some cases, than all of the above. Plus, with it’s new, shapely bodywork with direct styling cues from the incredible GT-R, the Nissan is a looker to boot. It’s certainly easier on the eye than the 350. The old car suffered with a rear end that made a baboon’s behind look attractive, but that’s now been sorted. A smart diffuser, central fog light and LED rear lamps combine to make it far tidier. The new car is shorter and wider than the outgoing model too and that squat stance looks superb on the road.

Sculpted bi-xenon headlamps, LED driving lights and a deep ‘shark bite’ front grille keep the front end looking fresh.

Green credentials ignored, it’s the perfomance stakes that really count with a sportscar – and here the 370Z doesn’t dissapoint. The 3.7litre V6 produces 326bhp (up from 309bhp in the 350Z) and 366Nm of torque. Performance figures are slightly improved too – the 0-60mph dash drops from 5.7s to 5.4s with the manual transmission. On the road this translates to a characterful and tuneful engine – that V6 has always sounded immense and, although a little muted lower down the rev range, it really impresses as the needle heads towards the red

line. The 370Z now comes with the option of an automatic box. Magnesium paddles behind the steering wheel can be used to swap the seven ratios and it makes for an involving drive. Although it doesn’t feel like it on the road, the auto box actually makes the car slower – it hits 60mph in 6.1 seconds when it’s left to change gears itself. It’s hard to believe that’s the case though – changes are fast and smooth and the built-in blips on the downchanges are Class A-addictive.

We actually preferred the auto box over the manual. The lever is weighty and a little over mechanical. This would probably loosen in time, but jumping from the auto to the manual it was very much apparent. However, if you struggle with heel and toe downchanges, fear not – Nissan’s new Synchro Rev Control technology offers drivers that throttle blipping tomfoolery automatically.

Push a button next to the six-speed shifter and when you disengage the clutch and move Bored at work? Check out more car reviews at CarDealerMag.co.uk the lever across to the next cog, sensors rev the engine for you, smoothing changes. It’s a nice, very-Japanese-tech touch.

We had little time in the 370Z on the launch – credit crunched Nissan combined the unveiling with that of its new £6k Pixo city car – but we still spent enough time behind the wheel to spot the new car is a marked improvement over the already-excellent 350Z. It handles superbly, gripping hard in corners when pushed, punching you out of bends with a ferocious kick. Steering is beautifully weighted with lots of feel and the driving position is spot on.

Lots of work has gone into improving the cabin – which is clearly evident. Those three dials perched on top of the dash are still there though, and the layout is user-friendly. But best news of all is the metal bar, that restricted the boot in the 350Z, has been dumped.

Structural rigidity has been improved enough for the engineers to remove it, freeing up a little more space in the back.

So how good is the 370Z? Well, what little time we got behind the wheel clearly points towards a car that scores higher in the driver involvement stakes than a TT and, in fact, not too far off the awesome Cayman too.

It’s that good. Nissan expects 650 sales in the UK for the first year with deliveries beginning in July. It’ll certainly take a canny salesman to gloss over those lacking green credentials, but stick a potential purchaser behind the wheel and we’re sure those mini-GT-R looks, tempting price tag and incredible performance will be enough to seal the deal.

JAMES BAGGOTT

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forecourt

POWERstruggle?

H

as Volkswagen dropped the ball before it’s even been played? See, the latest Golf GTI ‘only’ produces 210bhp – down on the Ford Focus ST’s 225bhp, never mind the 300bhpplus of the Focus RS rocketship. An Astra VXR? 240bhp. Mazda 3 MPS? 260bhp. Even the elderly Megane RenaultSport had 230bhp – and the new one’s going to have 250bhp.

So, although this is a new Golf GTI, the sixth incarnation of the famous line, it risks immediately becoming a ‘so what’ car. Don’t worry, though.

There’s no chance of that. See, the Golf is about so much more than raw power. Always has been.

And this is why the latest one will have enthusiasts queuing out of car dealers’ showrooms.

Besides, after driving it for the very first time, we can report that, actually, 210bhp is enough. This is an all-new engine, replacing the old 200bhp unit – but retaining its four cylinders, turbocharger and direct fuel injection. Top speed is up to just under 150mph, and the 62mph dash is reduced to 6.9 seconds.

But, more crucially, it’s a damn sight more flexible. It has 279Nm of torque – that’s almost as much as a diesel. What’s more, it is there from just 1,750rpm… right the way round to 5,200rpm! So much torque, across such a wide rev range, means this engine is astonishingly flexible and responsive.

Whenever you need go, it’s there. The Golf GTI has just enough for very rapid progress.

It even sounds terrific – all right-hand drive cars will have a special noise generator, for enhanced interior sound effects.

You can get it with a slick, fast six-speed manual, or the twin-clutch DSG semi-auto. If buyers really want to exploit the GTI’s full pace, they should go for the computer game-like DSG, with its instanta-

Have VW hit the rough with the latest Golf GTI and its lacking power figures? Not a chance, reports CJ Hubbard neous gearchanges. But, if they want to enjoy the experience fully at the same time, they should save money and go for the manual (just don’t tell the boss you told them that).

Car dealers concerned that customers may not be tempted into the options brochure margin add-ons, though, should rest assured.

Alongside the standard lowered sports suspension, Volkswagen has also introduced Adaptive Chassis Control to the GTI for the first time.

This electronic suspension controls steering weight, throttle response and suspension stiffness – and offers so much composure, we’d highly recommend it, as testimony to the engineers’ skill.

In the dry, there’s certainly plenty of grip – with the Golf keen to tuck its nose in unless you’ve really overcooked it. Helping cornering traction are new, standard fit ‘XDS’ electronics, which act sort of like a limited slip differential, albeit an extraordinarily subtle one. We’re assured this comes into its own in the wet.

Despite this ability, it’s also suitably comfortable, in the proper Golf GTI tradition. Set

‘Comfort’ on the suspension, and the tension drops, just enough. Steering is beautifully weighted as well, and the brakes are excellent.

Inside, the familiar flat-bottomed steering wheel features, as does the trad tartan covering for the fantastic sports seats. Climate control is also standard – but, again, there’s plenty in the options catalogue for customers to suitably boost profit margins on each.

Volkswagen’s doing its best to help them stretch to this. Already an extremely economical hot hatch, the latest Golf GTI is even more so. Average fuel returns improve to 38.7mpg, while CO2 falls to just 170g/km. This has big benefits for road and company car tax.

Mind you, it needs to be. The Golf GTI still isn’t cheap – £22,400 for the three-door manual, while a basic five-door with DSG isn’t far shy of the Focus RS. But is it worth it? Certainly. Absolutely.

Nothing – not even the RS – offers such a compete package of performance, usability, image and quality. The legend is back – and it’s better than ever.

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8/5/09 09:45:55

cult cars Standard GT-R not quite exclusive enough for you?

Then check out the Spec-V, our latest Cult Car...

I

t’s already an icon. A handful of lucky Nissan dealers will be basking in the halo effect soon, when it arrives in the UK. It’s the mainstream-maker alternative to the Porsche 911. It is, of course, the Nissan GT-R. We could feature the regular version here – after all, with well over 1,000 UK orders, yet supply at a trickle, it’s not as if it’s going to be thronging our streets any time soon.

But, to be a true Car Dealer Cult Car, you need to be very, very special indeed. Enter, therefore, the Nissan GT-R Spec V. The hardcore big brother of Nissan’s Godzilla, if for some reason the standard car is not tough enough.

It really is blindingly special. One of the rare criticisms of the standard car is that it’s a bit heavy. To solve this, Nissan has junked the rear seats, and employed much use of ultra-exotic carbon fibre. It gets the weight down to below 1,700kg – still heavy, but rather lighter than the standard car.

This helps it go even faster. The regular GT-R already has a 0-62mph time of 3.3 seconds… although the twin-turbo 3.8-litre V6 doesn’t get any more power than the regular Porsche-beating 478bhp, it does get more torque. At speed, Nissan engineers say, this increases punch out of corners. Just the job for trimming that Nurburgring time.

There are other aids too: 20-inch wheels, for example, which clothe

sportier suspension that is a mighty 20 per cent stiffer than the standard model. Initial test drives suggest this makes the handling simply mighty.

And all the extra speed it’s able to carry is hauled down with ease, thanks to Nissan’s first-ever use of carbon ceramic brakes. That’s not the only use of special materials, either. The Recaro seats are made from carbon fibre. Tyres, from highly exotic Bridgestone-formulated rubber. The exhausts – well, they’re built from what else but titanium? Yes, the same titanium that F1 manufacturers use – at huge expense.

Needless to say, all this doesn’t come cheap. The standard car already has a list price that those desperate to own one will have to add five-figure sums to. But even that pales compared to the cost of the Spec V. For, it DOUBLES the list price of the standard car – to well over £110,000! For a Nissan! Albeit a very, very special Nissan indeed.

No word yet on whether Nissan will officially import it. The factory can only make 30 a month, and already orders are spiralling.

But that won’t stop limited numbers finding their way into the UK, we’re sure. Specialist Japanese car dealers are going to have a field day with this, their new poster car.

Cult? It could almost have defined the word. First car dealer on the phone, to offer us a test drive, wins a big gold star…

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8/5/09 09:45:58

sales legends Peugeot’s pint-sized masterpiece revolutionised supermini design, as a nostalgic Richard Aucock recounts

Peugeot

205

T

he car that saved the company. Le sacre numero. The car of the decade. Yes, there are no shortage of plaudits for the Peugeot 205. Quite simply, it is the most important car the company has ever made. Remains so. And still, for many, is irreplaceable.

To understand why the 205 was so significant, you need to look at the state of Peugeot before it arrived. In short, it was in a bit of one. Large, slow-selling models were dull in design, and even French buyers were turning away from the famous Lion. Presence in export countries such as the UK was minimal at best.

That all changed in 1983. Along came Peugeot’s long-awaited genuine supermini contender, the 205. It replaced the 104 of sorts, and was pitched straight into a new car battle with the Fiat Uno and Vauxhall Nova. These joined the Ford Fiesta, Austin Metro and Volkswagen Polo to help establish today’s booming supermini sector with UK buyers.

Of all the cars, the 205 was certainly the prettiest.

Despite often being credited to Pininfarina, it was actually an in-house Peugeot design which proved so successful, it was NEVER facelifted. How many cars can boast unchanged panelwork during an epic 15-year production run? Mini, perhaps.

Volkswagen Beetle, sure. And the 205 is just as much of a classic as them.

Peugeot conservatism was evident in the running gear. Gearboxes shared the engine’s sump oil, and were elderly in design. But suspension was bang up-to-date, with a fancy torsion beam rear suspension, and MacPherson strut front. Early cars may have been soft, but they were also beautiful to drive, and rode superbly.

This got Peugeot thinking… For, a year after its 1983 debut, the most famed of all 205s arrived. The GTI. Sport tuned, stiffened suspension and a 105bhp 1.6-litre engine, it looked absolutely spot on. And drove so well, many began to question whether the modern rear-drive sports car had any sort of relevance anymore. The death, soon after, of cars such as the Ford Capri proved they didn’t.

This little handling rocketship had motoring journalists in states of utter joyous apoplexy.

Heavens, it still does. Car Dealer Magazine drove

one recently, and let us tell you, it’s still fantastic.

Our test car was the 1.9-litre version, which arrived in 1986. This had 130bhp, and could be spotted over the 1.6-litre by its 16-inch alloys, rear disc brakes, half-leather seats and clear plastic cover for the gearlever knob (well, details matter).

The rest of the range wasn’t forgotten either, though. Modern XU and TU engines finally replaced the cranky old 104-sourced ones, while a smart new dash saw the characterful but cruddy old one junked in 1988. Even the 1.6-litre GTI got a power boost, to 115bhp.

Sales continued to rise for UK Peugeot car dealers throughout the car’s life. By 1991, it was capturing three per cent of all UK registrations – giving it a place in the top 10 best sellers list, and regularly shifting more than 50,000 a year. Quite a turnaround for a maker that, less than a decade earlier, was almost invisible.

And the iconic GTI was taking a huge chunk of these sales. VW today boasts of a five per cent GTI

mix. Peugeot, however, could claim that one in five 205 sales was a GTI! That was more than 10,000 sales a year. And all, in our opinion, rightly so.

Don’t forget, either, the 205 van (few things were faster than an XRAD…) also used to snare well over 20 per cent of all Peugeot’s LCV sales.

In all, more than 5.2m 205s were made, between 1983 and 1997. Although Peugeot deemed it irreplaceable, it was eventually revived in spirit by the 206, which went on to do just as well.

Today’s 207 is the direct descendent of the car that saved the company.

And, even today, it’s still massively important.

Nowadays, Peugeot sales are dominated by lowCO2 cars – and a huge chunk of its market-leading CO2 position is down to the 207’s economy. There you go: Peugeot just wouldn’t be the company it is today without the 205.

You can see why it’s a legend. You can see why we want one. And you can see why a tidy 205 GTI remains on the Car Dealer Magazine shopping list…

‘By 1991, the 205 represented three per cent of all UK registrations – giving it a place in the top 10 best sellers list, and regularly shifting more than 50,000 a year..’

36 | CarDealerMag.co.uk CarDealerIss15.indd 36

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Motor Finance?

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So when it comes to motor finance, there really is no better alternative; here’s why!

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8/5/09 09:46:03

the result

Words: James Baggott | Pictures: Paragon

And the winner is...

Our challenge for BEN comes to an end as our final car is sold, but who won?

D

amn, drat and blast. And all the other swear words you can say in front of your mother. Yep, you guessed it – I lost. To a plumber. A plumber! If you’ve been following our Bangers4BEN saga, you’ll know that last month the result of our epic challenge was left on a Neighbours (RIP) style cliff-hanger ending.

First a quick recap. We set ourselves a challenge to buy cars for £200 which we could drive to John O’Groats and back again and then sell for a profit. The idea being not whether they’d make the 1,500-mile round-trip from our Portsmouth HQ, but that we could sell them for a profit at the end. The plan was to hand our original stake and the proceeds of the sales to BEN, the automotive industry charity.

We all set about finding cars in different ways.

I used my contacts book and ended up with two – a Mondeo ST24 (I’ll take that, thank you very much) and the Volvo V40 you see on this page. As two cars meant more money for BEN, I roped in little brother Will to drive the Volvo.

Dunc Chappell, this magazine’s new commercial manager, secured a Vauxhall Calibra in a behindclosed-doors eBay deal and friend of the mag Dan Harris picked up a BMW 318 off a mate.

Points were awarded for how much we bought them for and subsequently sold them for. And this is how it stands. I bought the Ford for £200 (0 points), had a break down (of sorts) that needed assistance (-500 points), but sold it for £600 (800 points, as there’s two for every pound made over £200). That gave me a total of 300pts. Nice.

Dunc bought the Vauxhall for £250 losing two points for every pound he spent over the £200 budget – so he’s in negative equity at -100. He sold his car at BCA for £265, reducing his deficit to -70. Not the best result, but he’ll argue he did buy at retail prices and sell through the trade – and still made a profit. Fair point. Dan bought for £200, sold for £250 and had no problems along the way putting him on 100 points.

So it was all down to the sale of Wills’ Volvo to decide the result. For this we enlisted the help of our friends at Paragon Remarketing. After a spring clean form the Shine! valeting guys we sent the Swede packing. We paid £201.75 for the V40 from Motorpoint (who did us, and BEN, a massive favour) so if it sold for £153 over that he’d win.

Paragon Remarketing chief Peter Davies had big plans for the Volvo. Ever the re-marketer he first planned to raffle the car off to his database of thousands of traders, but legal issues scuppered that deal. Instead he entrusted the car to his online live auction team and it was entered for sale at the end of April alongside 76 others.

Ours was the oldest by six years – and it looked distinctly second-hand alongside the auction firm’s mostly 08-plate Vauxhall and Fiat models, many of which were coming from companies that had gone into liquidation.

We excitedly followed the sale online using Paragon’ brilliantly simple user interface. We’ve covered the firm’s clever new system in this

No, the V40 hadn’t broken down – it was off to be sold

The Volvo’s mugsot

We loved the live online sale

magazine before and were suitably impressed then – but sitting back watching our V40 up for sale in the comfort of Car Dealer HQ really hammered home how good the Paragon offering is.

The site is easy to log-in to and understand – and the audio and video of the auctioneer is excellent and engaging to listen to. Most of the cars were achieving near CAP clean prices, which was encouraging, and then it was the V40’s turn.

Read our blogs and watch videos of our trip at Bangers4BEN.com ‘This is a very clean example of the V40 in excellent condition,’ explained the auctioneer, before the bidding began. He went on to hammer home the message the sale was for charity and that it took us to Scotland and back without any problems.

We used the message box on the site that let us communicate directly with Paragon, letting them know our minimum price – then we were off. The first bid was a bit slow in coming, but within seconds of the first £100, there were two more, rising in £50 increments to £200. That’s our money back. Now just another few quid and Wills wins.

By this point I didn’t really care if I won or not

– it was all about getting the most for the Volvo as we could for BEN – and we’re shouting at the screen like we’re watching the Grand National.

The auctioneer sells the good points, re-iterating that we used it for the trip, and bidding continues upwards in £50 increments. It hits £300, wavers for a minute as I think for a second I might just clinch victory, but then off it goes again. Marching upwards to £400 taking the sweet taste of victory with it.

Bidding slows to £25 jumps and everyone’s done at £550. Nice.

So that’s a £348 profit – which converts to a massive 696 points, handing victory and bragging rights to The Plumber. The final standings were as follows: 1st Will (692pts); 2nd Me (300pts); 3rd Dan (100pts); 4th Dunc (-70pts).

But the real winner – corny, but true – is BEN. We just about managed to double our original stake, handing over a total of £1,665 to the charity. And at a time when it is being hit hard by the credit crunch, laying of staff and cancelling its annual lunch, every little helps.

So what next? Well, now we plan to do it all over again, but get you involved too. If you’re up for it email me at james@blackballmedia.co.uk and register your interest and I’ll send you the details once we’ve firmed them up with BEN.

38 | CarDealerMag.co.uk CarDealerIss15.indd 38

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VIBRANT NEW SALES CHANNEL REGULAR ONLINE LIVE AUCTIONS ONE STOP SHOP DE-FLEET, REFURBISHMENT, DISPOSALS

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To find out more, contact us at:

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CarDealerIss15.indd 41

8/5/09 09:46:22

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THE COMPLETE PROFESSIONALLY APPLIED CAR PAINT AND FABRIC PROTECTION SYSTEM DESIGNED TO KEEP VEHICLES IN SHOWROOM CONDITION INSIDE AND OUT – GUARANTEED FOR LIFE The only paint and fabric protection to fully protect your vehicle against the rigours of life including road salts, traffic film, acid rain, bird droppings, tree sap, fading as well as interior spillages and stains FOR LIFE. s &!.4!34)# 02/&)4 /00/245.)49 n %!2. /6%2 a 0%2 6%()#,% s 0%.%42!4)/. !#()%6!",% 53).' /52 3500/24 0!#+!'%

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CarDealerIss15.indd 42 Diamondbrite A4 TRADE ad.indd 1

8/5/09 09:46:23 5/5/09 13:07:20

07:20

feature

Is your dealership

The smarter your stock is, the more tempting it will look to buyers. Richard Aucock looks at why every dealer should be cleaning up their act

C

orrectly presented cars sell faster. Fact. Do new home builders show their properties with grubby carpets and dirty windows?

They most certainly do not. But, of course, you know this already.

So we’re not going to show you how to suck eggs here. But what we are going to do is point out how clean cars can help you clean up.

Interested? Then let’s get down and dirty…

See, the car care market is huge. In motor factors alone, entire sections are dedicated to it. Row after row of cleaning products, all boasting different things. How on earth do customers choose? Well, only the most committed will put much time into it. The rest will choose on price alone.

Ask yourself, though, why are they shopping at a motor factor for car cleaning kit? Why do they not have it already, from their local car dealer? The chaps who, after all, prepared their new or used car to such a high standard in the first place – whose skills they try to replicate every Sunday afternoon?

Even better, why have they not been sold specific products for specific needs? Told exactly what the

latest polish is, what it does, and why they need it?

See, one big bonus you have over motor factors is your service department. They can advise. They can sell. They can make you money. But how do you help them do so?

Auto Glym is one such company offering assistance. For starters, it runs constant advertising across many different outlets, including classic car mags. It’s all focused on brand-building – enhancing, say, the classic car shows, events and awards it runs, meaning the company (and logo) has a high profile. Indeed, it’s the UK’s leading car care brand.

What’s more, it’s a brand with lots of currency.

And you can tap into this – and in ways that stretch much further than simple polish sales. Why not, for example, enhance the whole proposition by committing to using Auto Glym in the valet bay?

After all, the company’s end goal is helping people eradicate any previous traces of ownership.

‘Sure, they could be buying a used car from you,’ says company CEO Paul Caller. ‘But they’d rather be buying new. Our goal is to help you achieve as

close as that to them as possible.’

To help car dealers here, says Caller, it would probably be an idea if they attended the training school the company runs. Based in Letchworth, this educates staff as to the ‘best standard’ way of car cleaning. There really is more to it than there seems…

This includes the crucial element of saving time.

Achieving the best possible result in the shortest possible time. It’s all very well getting a top finish, but if every car is taking half a day, that’s no way to prepare hundreds of cars…

Auto Glym therefore communicates all its top time-saving tips, plus the best possible way of dealing with problem areas from the pros. They speak of slicing seconds and minutes: in busy car dealers, just the language you want to hear!

‘We also show people that they don’t need 50 different chemicals – they can valet a car with just four. This keeps the cost down… if people know how to use them. We show them how,’ he adds.

Caller has worked in the retail motor trade all his life. He is well placed to know where the car >

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feature

‘UV light fades non-metallic paint in an eyeblink. Show customers you can make their red and blue cars look like new with some paint restorer…’

valeters sit in the dealer hierarchy. ‘Traditionally, they have been seen as a cost to the business. But they’re not – they can make you money!

‘There’s so much potential to move on from just the basic service wash. We feel car preparation is an untapped revenue stream for car dealers.’

And this is where you start to tie in aftersales with service.

Particularly now summer’s here. Clean cars are hot currency when the sun’s blazing. Cars can take just as much of a battering in the sun as they do in the grit, ice and snowladen winter. But it’s something that customers may simply accept, without doing anything about it. Here’s where you can come in!

Why not point out, for example, all the dead dried-on bugs on their cars’ nose?

Heaven knows, they’re all but impossible to move – unless you’re using a special bug remover. Nose wiped clean in seconds, and a happy customer more than willing to buy from you after you’ve so ably demonstrated it.

You can extend this to tar spots, which the customer may not even have noticed – but, with the use of a well-judged fingernail on a huge slab of stuck-solid Tarmac, and the risks of picking it off with more ‘utilitarian’ means, and they should be totally convinced.

Cue one more profitable aftersale.

UV light fades non-metallic paint in an eyeblink. Show customers you can make their red and blue cars look like new with some paint restorer… five minutes’ rubbing on a small sample area will leave the customer unable to believe their eyes.

These can all stand alongside sales of more mundane, but no less important, items such as screenwash. Petrol stations make bundles from displaying de-icer when it’s freezing outside. Why not do the same with your summer screenwash?

Tell customers they don’t have to put up with dead squished wasps staring back at them from the windscreen… better still, show them, with a few ‘before and after’ digital camera photographs.

Why doesn’t your team run a car cleaning masterclass for customers? Demonstrate the huge variety of aftersales products you offer, on a suitably grotty example, by your most experienced valeters. Customers will see the transformation before their very eyes, plus all the products they need to achieve similar gains.

And, if they still can’t be bothered to do this themselves, you can then retail your own valet service, sitting as an extension to the in-service offer, at low cost! Indeed, it will probably cost the same as if the customer had bought all the kit themselves – but with a damn site less effort on their part for, probably, even better results than they could achieve.

It really is a win-win, and helps keep the valet team in gainful, profit-generating work, too.

Mind you, if you don’t have a car valeting division already in place, the

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Diamondbrite... a dealer’s best friend?

W

thought of employing more staff and investing more resources in setting one up may not really appeal. So why not contract it out? This is where companies such as Falcon come in.

They’re an experienced lot. They’ve been going for 35 years and, today, reckon to prepare more than 15,000 cars a week. They can offer dealers a number of plug-in services, including full valets, paint and upholstery preparation, and cleaning schemes from stock service washes to full display cleaning – both for forecourt and showroom.

‘Our guys are highly trained and cover all bases,’ said the company’s Cathryn Rigby. ‘We can even do on-site machine polishing, for car dealers seeking the very finest standards.

We’d highly recommend this for premium dealers, as the results are breathtaking.’

They also deal with aspects you might not even have considered – they can, for example, supply

COSHH data sheets, plus all the requisite health and safety equipment and information, for every site they work on. One less thing to worry about for when the HSO visits – particularly given how chemical-dependent car cleaning is.

All these products are supplied by Falcon, as is everything else associated with car cleaning. ‘All customers pay for are the vehicles we clean,’ says Rigby. ‘This means car dealers pay no employment costs – and, thus, no administration, holidays, sick pay, filling in absentee slots… contract valeters also help in forecasting budgets. Everything can be predetermined at an early stage.’

Such close attention often throws up imperfections and minor gripes. You know – chips in the windscreen, scuffs in the leather, tiny dings and dents… plus the dreaded scraped alloy wheels. And this is where magicians such as Glass Aid come into play. >

hat about your customers who like clean cars, but can’t really be bothered with all the work? Here’s where Jewelultra come in. They’re the company behind Diamondbrite, the paint sealant system that users love.

Why? Because it means they can clean their car with a hosepipe. Literally. People simply rinse them off, leaving a gleaming Aston Martin, Bentley, Jaguar, Land Rover, Ferrari, Rolls-Royce, Porsche (we could continue) behind.

Why those brands? Because they’re all car dealers who sell the Diamondbrite service. See, it’s a highly specialised service that, once trained and authorised, dealers can apply to customers’ cars. Earning them £150 per vehicle in the process.

The promise, says sales and marketing director Lance Boseley, is simple: once treated, they never need to polish it. All they need do is follow Diamondbrite’s maintenance schedule, and that gleaming AM V8 will remain gleaming.

The two-stage product works its magic thanks to a protective layer that’s been invented, tested and minutely perfected by lab scientists in white coats. Once applied, it means you can promise them the paint will be protected from acid rain, sunlight, nasties pumped out from factories – even bird lime.

The company even offers a lifetime guarantee on the Diamondbrite product.

Yes indeed. A lifetime guarantee, for the entire period the customer owns the car. That’s quite incredible. No wonder Dagenham Motors, Ford Retail, Jardine and Bristol Street are all marked down as retailers of the product.

‘We even cover fading. Diamondbrite even makes it easier to remove summertime fly splats,’ says Boseley. And he speaks of franchised dealer conversion rates of 40-50 per cent too. ‘At car supermarkets, the penetration rate is higher still.’

Furthermore, reports are that, once customers sign up for the product, they’re more than willing to buy many more of the huge range of cleaning products made by Jewelultra. This ranges from the recommended paint Conserver, to interior fabric protectors, to leather care and carpet protection.

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feature

Take dents. So long as the paint is not broken, they can make them disappear. Removing those ugly car parking dings which the sides of modern cars show up so well. Eradicating such blemishes can pay untold dividends on customer perception, both for used stock and for customers’ cars themselves.

As Auto Glym’s Caller says, it’s about ‘removing seeds of doubt in the customer’s mind’.

Market this as the magic way to make cars look like new. Combine it with a valet service. Pre-book customer cars in, so they can be attended to while the Glass Aid guys are fixing your own used stock.

You could even call it ‘Dent Day’, scoring a healthy slice of profits and legions of amazed, ‘how did they do that’ faces from customers in the process.

The goodwill for your business would be vast.

Mind you, as Glass Aid points out, even broken paint can be magically repaired. As can scraped painted plastic bumpers, faded plastics, torn leather… you name it, there’s a solution out there. Plus, the trained staff to, on site, put the promises into action.

See it as Botox for cars. And the preparation

before that? Well, just as most girls (and, indeed, chaps…) don’t step out without a touch of makeup, so too should you not display your cars without finessing their finer aspects.

As Caller says, it’s all about getting people to keep coming back to you. Each time they give you their current car to make it look ‘as new’, they’ll

be on your premises, in the showroom, looking at new stock. With all this trust you’re building with them, who knows – after the fourth or fifth service valet, or second bottle of polish, they may just decide now’s time for something new…

Car care. Take care of it, and the profits will take care of themselves. [CD]

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option 1

option 2

option 3

Glass Aid (GB) Ltd www.rapidesmart.co.uk

CarDealerIss15.indd 47

9 Airfield Road Christchurch Dorset BH23 3TG England

+44 (0)1202 491616 Tel: +44 (0)1202 484316 Fax: Email: rapide@glassaid.co.uk

8/5/09 09:46:31

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

g n i t s o p s Jo b b o a rd f o r t h e mo t o r t rade . . .

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

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

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

Free job ads at CarDealerMag.co.uk CAR Dealer Magazine offers the trade a free jobs posting board for the car industry!

WHAT ARE WE TALKING ABOUT? Well, with the car industry struggling and automotive jobs getting axed left, right and centre we’ve decided to do something about it. We’ve teamed up with our friends at Skupe Net to let you post any available vacancies on our website COMPLETELY FREE OF CHARGE! WHAT’S THE CATCH? There isn’t one. It’s absolutely vital that when a position is available in these troublesome times

CarDealerIss15.indd 48

it is promoted to as many people as possible and not restricted to the companies that can afford to pay for the privilege of advertising on jobs boards. That’s why our site is FREE to use! We know it sounds too good to be true, but check out our site and you’ll see we’re not lying.

HOW DO YOU DO IT? All you have to do is register for an account – by entering your business name, telephone number and your details on our registration page of our website. Our partners at Skupe Net will then email you a password and you can start uploading your jobs. We can even accept feeds you use to post jobs on other sites – so if you’re a

recruitment agency uploading your jobs couldn’t be easier!

ANYTHING ELSE? Well, now you mention it there is. We’ll also be offering some fantastic upgrade packages for your listings. Basic job listings are very detailed, but you might want to give your special jobs even more prominence.

If you do, we can offer the addition of your logo to attract attention (£1.99 per job), featured slots on the first page of the jobs search engine and, for just £9.99, a copy of the main points of the advert printed in the next issue of Car Dealer Magazine. Deal, or no deal?

8/5/09 09:46:36

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Say

Cheers

Saying thank you to your staff is more important than ever when times are tough.

Richard Aucock looks at the best ways to incentivise your staff to keep sales going

T

‘I go along to events, see the appreciation in people’s faces. It’s special to them. They remember it for the rest of their lives.’

TOP PICTURE: THE NEWS

imes are hard. Staff are under pressure from all fronts. The workload is booming, there are constant dramas at work, and even heading home at the end of the day only transfers attention on to a different set of concerns, rather than relieving them entirely.

Life, in short, is pretty pants.

Help make it better for them. Acknowledge the huge efforts they’re putting in – with some well-earned rewards. Goodness knows, everyone needs something right now, no matter how small.

This is where rewards programmes come in.

They’re probably the last thing on your mind right now. But believe us, they should be one of the first. A good scheme cannot only create a missing-much needed buzz around the workplace, but can also improve company loyalty.

When everyone’s heads are down, any way of geeing them up should be welcomed. And what better than with footie or the horses?

As it’s usually the back pages of The Sun you’ll see staff eagerly flicking through, it’s clear that sport is crucial to most of us. Foster this banter about Scholes’ tackles or Torres’ latest wonder goal by laying on a trip to an actual big game!

Or a big motor race, or horse meeting, or cricket international, or…

See, companies such as The Sports Partnership not only have tickets, but have boxes available at all the top events. They specialise in laying on corporate hospitality, which companies such as yours can sign up to. Providing you with a readymade incentive package with all the legwork done for you.

Just think – your company’s official box, at a Premier League crunch match. What sort of a driver would that be to your staff, if they could win a chance to go along? Sounds amazing.

Let’s be serious, though. Who’s got that sort of cash lying around, to send customers or staff along for corporate box lavishness at Cheltenham? Not many of us, that’s for sure.

That’s where another side to The Sports Partnership comes into play – its ability to tailor packages to what you both want… and can afford.

Event manager Paul Jackson is the man to speak to. Straight talking, he knows car dealers are finding it tough. But also knows the importance of rewarding hard work. >

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‘I go along to events, see the appreciation in people’s faces. It’s special to them – they remember these things for the rest of their lives,’ he explains.

‘This is why we tailor packages to customers.

Just want tickets to a top game or motor race?

We not only have them, but can work out a full package that fits just what you want. You can pick up the phone and speak to me – I’ll not only tell you why, in the current climate, it’s well worth doing… but also how you can afford to do it.’

Even better, he’s giving Car Dealer Magazine readers 10 per cent off any deal they strike with him. Could be a rewarding call…

Yes, rewards schemes right now are a hotbed of ingenuity. Take another company in Hampshire. From £20 per driver, you could send your staff to drive any of the world’s top racing Why not send staff to try a virtual race circuits. In almost any famous car they could event or pack them off for an experience day? dream of. Even better, they can take on others in their chosen million-pound motor, in an actual race! Sound tempting?

That’s the premise of The Race Centre. It is the country’s first racing simulation centre. The concept is absolute genius. Visitors sit in a reallife F1-style cockpit pod, complete with Momo steering wheel – only they’re controlling a giant computer screen, not a real car!

Not that it’ll feel like it. The steering wheel has force feedback. Paddles are fitted, just like on Hamilton’s wheel. The drilled pedals are the same as used in motor racing – the brake pedal even has an F1-strength spring!

Up to 50 people can compete in a series of

races, even a mini-tournament, that is run EXACTLY like a real motor race, but on computers, instead of in real life. This is how your staff or customers can get to drive a famed Ferrari, or a classic ex-Moss Maserati. This is how they can beat all comers in an iconic Lotus. This is how the staff noticeboard can display YOUR company’s winner of a race they ran in an F1 McLaren!

The huge screens are a bit like the aircraft simulator on The Krypton Factor. Only here, prices really do start at under £20. Compare it to an indoor karting session with a real, real twist… the concept is so brilliant, Car Dealer Magazine is angling for an invite!

You may be considering bigger rewards, though. The obvious one is the good old bonus.

Ask staff if they’re incentivised by more cash or a tangible gift, and of course they’ll say cash. Who wouldn’t? Think, though, about the psychology at work. >

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12387 Incentives Ad Art 190x142:Layout 1

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8/5/09 09:46:42

feature ‘Make people feel good and they’ll perform better, stay longer and ultimately make you more money. It’s the gift that just keeps on giving.’

Reward them with more cash and they’ll spend it on the gas bill. But tantalise them with an Omega watch if they meet Q3 sales targets, and – well, the facts say it all. In a test case at Goodyear, staff rewarded with non-cash gifts performed nearly half as well again as the cash ones. Non-cash simply works better.

It’s all about hooking into different sides of the brain, explains Grass Roots’ Francis Goss. They’re a company who can devise an entire rewards programme for you. This ranges from, as marketing manager Michelle Westley continues, the feasibility and business cases of it all, to deciding on which benefits to choose, to sourcing them and then communicating to staff.

‘We concentrate on building bespoke programmes for clients,’ she said. One size fits all programmes don’t often always fit; these guys know far better what’s good for you.

Again, worried about the cost of it all? Who wouldn’t be. But, as Westley says, rewards schemes don’t have to be a drain on funds. ‘By utilising salary sacrifice and tax efficient benefits, programmes can be largely self-funding,’ she says. And will be more than happy to tell you, too.

Before you even start, though, remember that any schemes should, of course, be well communicated, so everyone can understand them. They’ll ask: What’s in it for me? Tell them exactly what, and watch the excitement crank up. Besides, evidence shows that the simpler it is, the more likely people are to engage.

Remember, the whole idea here is team building and morale boosting. Julie Selfe is from FSL Events, a company that knows plenty in this area. They build bespoke team building events, paying full attention to something else you should consider – corporate social responsibility.

Social responsibility from incentive and reward schemes? You bet. And look beyond the traditional team building image of running through forests. Today’s events are much more inclusive than that – testing delegates mentally as well as physically. All with the one aim of gelling the guys who work for you.

Of course, where rewards work for staff, they can also work for customers. One of the best, most innovative schemes out there is Bluerewards. Spend money at a massive number of retail partners, get money off a new car.

Simple promise, genius concept. Retailers certainly agree. Boss Paul Cleverly says he is ‘beating retailers off with a stick’ to join. In April alone, Bench, Burton, Goldsmiths, BAA Parking and Great Magazines were added. These are all names you and your customers spend money at!

A day at the races or cash in their pocket? You’ll What’s more, in May, yet more have been be surprised the former will motivate staff more

PICTURE: goodwood.com

added: Focus DIY. QVC. F Hinds. Maplin. Earnest Jones. My Favourite Magazines. If all these shops were in one retailer park, customers would be queuing around the car park. But they can be in YOUR car dealership, on a reward card with YOUR dealer’s name on it…

You can see why Car Dealer Magazine rates these schemes so highly. They work on the part of the brain as Goss’ studies revealed. By making people feel good. Do so, and they’ll perform better, stay longer, and ultimately make you more money. The gift that keeps on giving.

We all need a little attention sometimes. When everyone’s finding it tough, it is the understanding that counts. Rewards can provide this, as well as an incentive to do more business, sell more cars, gee up the aftersales turnover. When it can also include a day at the footie or a nice new Seamaster, for minimal cost to the business – well, what’s not to like?

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Rewards bolt from the blue It’s not just your staff you should be looking after – you need to offer customers a carrot too...

Rewarding times

Some of the big names taking part in the Bluerewards scheme

H

ands up anyone who makes a diversion on the way home, to use a BP fuel station instead of any other. Or who is wedded to Tesco rather than its rivals. Well you can join more than 85 per cent of the UK population then.

But how do you take advantage of this superpower magnet in your own business? Get on to Paul Cleverly of Complete Automotive Solutions, that’s how. He’s launched Bluerewards. This is a loyalty reward scheme that card-carrying customers can use to get money off new cars. It’s unlike any other dealer reward scheme thus far – and offers benefits on an unprecedented scale.

‘With CloseIt, we are able to measure customer retention. Generally, it is around 20-30 per cent.

There are, therefore, millions of customers out there who are changing brand – and changing

‘To be blunt, you need a bribe to ensure your customers don’t go anywhere else.’ dealership – when they buy a new car. This started to interest us,’ said Cleverly.

‘We found that, when people change car, they tend to stay within the same car segment. They just, well, fancy a change. So, if you’re a multi-brand group, you probably have a product there that interests them. But are customers aware of this?

‘Increasingly too, carmakers are pushing dealers by town, such as Bristol Ford, rather than by group. Customers probably won’t even be aware you’re part of a multi-franchise group!

‘In short, you need some way of bringing them back at vehicle change time, to ensure the first conversation they have is with you. And you need a way of ensuring that prospect is an incredibly good one.

‘To be blunt, you need a bribe, to ensure they don’t go anywhere else…’

This led Cleverly to look at the various reward products on the market. The problem with all of them, he said, was that they cost the dealer money. A non-starter in the current climate. They were also reliant on just a few customer money-saving opportunities within the ownership of the vehicle – such as 10 per cent off servicing.

‘They just didn’t offer enough opportunities to enhance the relationship,’ added Cleverly.

A year ago, Cleverly made a pivotal trip to the US. There, he discovered Automiles – a loyalty scheme for dealers. ‘It was an online reward scheme, to which various retailers were signed up,’ he explained. ‘Spend money with them, and customers earned points.’ And points mean the prize of cash off cars…

Fast-forward a year, and Cleverly has launched a similarly groundbreaking product in the UK: Bluerewards. The premise is simple – and quite stunning. Bluerewards works exclusively with a jaw-dropping array of retailers. These include Currys and Dixons, PC World, Vodafone, Play.com and BHS. Customers earn money thus: they buy, say, a mobile phone from Vodafone. Ordinarily, the retailer of the phone would be paid a commission, but here that goes to the customer’s Bluerewards account instead. This commission accrues, to fund a new car. Genius? And then some… It is all managed through a bespoke Bluerewards web portal. This ensures that every time a customer buys online from a listed partner, they’ll earn money to buy a new car.

There’s more. ‘This portal is branded to the dealer’s own look. In essence, it is the dealer’s own shop, in which the buying customer is rewarded with money off a new car from them.’

A dealer shop that sells all sorts, from Vodafone mobiles to the new X Factor DVD. Some users will buy online literally hundreds of times a year – and, every time they do so, they will see the dealer’s branding.

That’s not all. Cleverly’s team offers daily deals, too. These feature ‘one-offs’ – short-term bargains and other incentives to make people visit every day. This means, of course, they’ll see your dealer branding all the more often. If Dixons have 400 of last year’s LCD TV model to shift fast, this is where they’ll appear. At a price that’s more of a steal.

‘It’s your dealership helping people to save money,’ enthused Cleverly. ‘This is great for brand recognition and loyalty.’

There really are a whole host of benefits – not just for you and your sales sheet, but for your customers too. To find out more contact Cleverly on 0845 421 5050 or see bluerewards.co.uk. [CD]

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© 2009 Exxon Mobil Corporation. Mobil 1 is a trademark of Exxon Mobil Corporation or one of its subsidiaries.

With a proven record for performance, Mobil 1 is the World’s leading synthetic engine oil. However, leading in technology is only one thing. Mobil 1 goes further to boost your business performance because meeting the high demands of today’s customer triggers a higher demand. Mobil 1: the surest way to make the most out of your lubricant business. To learn more, visit www.mobil1.com

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feature

L

ewis Hamilton is Formula 1 World Champion.

Which is as relevant to you as it is to billions of F1 fans. See, part of the key to his success was having the right oil in his motor. And, though Mobil 1’s been busy ensuring he has just the lube for the job, it also hasn’t forgotten YOU. So, how can you use some of this motor racing success to ensure your own profits win, too? Well, by putting the old saying, ‘win on Sunday, sell on Monday’ into practice. And we don’t mean shifting more cars here.

Times are tough, and there’s no denying sales have dropped. This is really affecting the profitability of many car dealers. That’s why other sources of profit are needed.

Aftersales is one such area. Customers are keeping cars longer. And, where they do this, they also need to maintain them more; replace the

consumables that wear out; and keep on top of day-to-day running issues. See, aftersales is a profit stream to tap even in these tough times.

There’s no better place to start than oil. All cars use it. All cars can run low. It’s the one consistent across every brand, every car, every make and model under the sun. Five or six different types of oil can cover the vast majority of cars on British roads. Even better, stocking just ONE brand can cover pretty much EVERY car on sale.

Enter Mobil 1. The world’s leading synthetic oil. Used by more car manufacturers on the production line than any other. Able to offer customers ‘new car’ fuel economy even half-adecade down the line.

But, isn’t it a premium product, you’ll immediately stop and tell us? Expensive, not of relevance to my customers? That’s just what we

thought. So we pitched the question straight to Mobil 1. Not so, they said: ‘We’re a premium motor oil upgrade that will cost a maximum of £20 per year.’

Just 38p a week, for an oil that’s good enough for Lewis Hamilton, with all the associated benefits that this connection brings… Okay, that sounds compelling to us, we said. Do tell us more about how car dealers can benefit here.

Graeme Cassidy, UK national accounts manager for Mobil 1, is just the man.

‘Dealers really should be looking to take advantage of Mobil 1 branding,’ he says, >

oilingwheels Success It may be essential stuff, but as Richard Aucock discovered, many dealers are missing the chance to turn oil into profits

the

of

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feature ‘Especially alongside the association with our British F1 World Champion.’

The big starter question for car dealers, of course, is how they can make money from doing this. Well, first of all, says Cassidy, by playing current trading conditions to their advantage.

‘Motorists are holding on to their cars for longer,’ he says, ‘and becoming more conscious than ever of the running costs.’ This makes them more likely than ever to choose cheap oil – it’s an easy saving.

‘Service advisors need to convey the associated benefits of a top grade oil – by telling customers about the financial significance of the false economy of cheap grade oils.’

It’s something Mobil 1 has already been addressing. An education scheme has been running for some time now ‘proactively upselling and enjoying the associated benefits – namely, financial gain and customer retention’.

If you’re seeking one compelling reason why you should sign up, consider this: Cassidy reveals a fact that should truly shock car dealers… PETROL

FORECOURTS are taking the vast majority of topup sales. Yes, petrol stations, nicking your business!

What does this say? That oil is only being viewed as a ‘distress purchase’.

‘Car dealers have a unique opportunity to take ownership of this sales funnel,’ says Cassidy. ‘Why were those customers not already carrying a bottle?

Why had the dealer failed to sell it to them in the first place during a regular service? This is why we have extended our Top Up training and education scheme, to show the full benefits of the scheme.’

That’s just one of many revenue streams. ‘Profits can be generated from in-service fills, top-up sales – even trade sales. Dealers can also make the most of our aftersales programmes, such as data sourcing and vehicle health checks. We’re happy

to give car dealers any information they need on these – all they have to do is drop us a line.’

Indeed, Cassidy says there is no particular ‘type’ of dealer Mobil 1 will welcome hearing from.

Simply, ‘any dealer looking to drive income! We want to sign up dealers who are able to motivate staff, to take the time to learn about Mobil 1 technology – in short, someone who is passionate about educating and selling to customers.’

After all, not only have lubricants ‘always made an important contribution to dealer margins’ they can even offer a lift to the entire car dealership. By hooking up with Mobil 1, says Cassidy, it shows the

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‘Service advisors need to convey the associated benefits of a top grade oil – by telling customers about the financial significance of the false economy of cheap grade oils.’

dealer cares about the oil put into cars which, by extension, suggests only the best materials, spares and skills are used elsewhere. Psychology at work, he says. ‘Mobil 1 introduces ideas to sell brands rather than products,’ he adds.

Cassidy reckons it’s a great time to be hooking up with Mobil 1: ‘The Lewis Hamilton connection has made the brand more visible – Mobil 1 is arguably THE motorsport oil brand. This delivers all the key messages to buyers.

‘From a marketing perspective, brands only add to the service offering – and to customer confidence.’

He offers a striking illustration. ‘When burger chain McDonalds stopped offering Coca-Cola and started using their own-brand Cola, sales fell by 25 per cent!

‘Why? Because customers did not associate with this branded product as well as Coke. They were not reassured by the purchase. >

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feature ‘Remember the famous BmW that mobil 1 ran for a million miles? When they stripped it down, they found every single component was still within production line tolerance. Well, that was two decades ago. Since then, oil quality has improved even further.’

‘Your customers have already bought into the brand above your door, so the same sentiment applies to the proactive promotion of the trusted oil brand used in their vehicles.’

It can even be used as a sales tool by the used guys, says Cassidy. Communicating any cars offered with a full service history using Mobil 1 is a real bonus, he says. Give them a wallet full of stickers and, chances are, they’ll be reassured. Better still, show them the sticker glued in the engine bay…

Of course, after all this, the technical benefits are easy to portray. Mobil 1 works in temperatures of -50 to +50 degrees C. Ensures engines start easily in all climates. Saves five per cent of fuel over conventional oils. Helps protect catalytic convertors and emissions control devices. While also, of course, ensuring virtually zero engine wear.

Remember the famous BMW that Mobil 1 ran for a million miles? Whose engine it stripped down at the end of this marathon, and found every single

component tolerance was still within production line tolerance? Well, that was two decades ago.

Since then, oil quality has improved even further.

‘The fuel saving alone will pay for the upgrade,’ says motorsport technology manager Bruce Crawley. But there are ample other reasons why Mobil 1 is the top synthetic oil on sale.

He goes deep into the F1 connection with us, by showing slides of scientists in white coats with measuring jars. Clinical? Well, we’d fear for eating off the surfaces we saw… simply through concern of getting them dirty!

‘In F1, the key priority is to release as much power as possible, the secondary consideration is to provide long-life protection.’ Mobil 1 emphasises getting the most performance out of the Mercedes F1 engine: did you know, for example, that the few extra bhp released by a new grade of oil helped Lewis Hamilton win the British GP? In time, this crosses over into road cars. This oil

technology often finds it way into subsequent generations of Mobil 1 road-going oils. Mobil 1’s scientists are constantly trying to reduce friction in the engine to deliver more of the fuel’s energy in road traction.

But this cannot be done at the expense of compromised durability – so the challenge comes in the balance between performance and protection.

There’s a lot to it. But there doesn’t have to be a lot to selling it. You can let Lewis Hamilton do that for you – so long as you have the processes in place to handle what customers demand, Mobil 1 reckons it has a product that’s primed and ready to go.

Next time you see Hamilton on the podium, showing off yet another Mobil 1 logo on his overalls, think about how cool it would be to tie into this free worldwide ad, with that exact same logo sitting on your showroom’s shelves… [CD]

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ATTENTION ALL PRESTIGE CAR DEALERS...

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Dealer finance commission packages are also available from as low as 2.95% flat rate

Bridford works mainly with UK car dealers but if you’re an interested individual, call us today.

Or visit: www.bridford.co.uk

0844 815 8888 tim.marlow@bridford.co.uk CarDealerIss15.indd 60

8/5/09 09:47:48

%

R

cultclick cars right

...in association with g-forces

the good news in the gloom In tough times buyers want a deal – and that means they’re getting online to find one, reports G-Forces’ tim Smith

C

all it a recession, a financial crisis or even a depression, one thing’s clear in this economic situation: the high street is suffering. Retail outlets are closing, announcing huge drops in turnover, and the high streets of many towns increasingly feature empty shops.

Of course, the commentators are calling the decline of the high street a symptom of the economy. Suggestions abound that people simply don’t have money to spend anymore and we’re all, financially speaking, doomed.

Unsurprisingly, this sort of talk is simply so much biogas. People are still spending; they’re just doing so with more of an eye for a deal and from the comfort of their own home.

Online shopping has continued to grow in the face of the high street collapse, with an annual growth rate of 19 per cent, according to the Interactive Media in Retail Group, this past year alone. All well and good, but how does this relate to the automotive dealers, long-since removed from the high street and seemingly banished to enterprise parks on the edge of town?

Put simply, digital dealerships mean automotive dealers are once again able to position themselves where the market is. For our clients this has been reflected by continual increases in website traffic and, importantly, record sales months in the last quarter despite the miserable consumer situation portrayed by the media.

Automotive web platforms and software – including G-Forces’ NetDirector Auto – mean that, despite any geographical distance, there’s more scope for attracting customers online than was ever available on the high street.

The internet has evolved and so to have automotive websites. Leading web-platforms now mean dealers can make use of interactive design and multimedia and, with functions such as live chat, customers can be as fully immersed in the brand as they would be had they strolled through the dealership’s doors. Effectively the

Empty shopping centres might be hurting the high street, but could benefit digital dealerships weighting should be at least 20 per cent. By the time we get to 20 per cent you or I will probably be spending a third of our time online.’

With more customers moving online and leaving traditional shopping channels, now is the time for automotive dealers to budget effectively for web marketing strategies and whole web is now your forecourt. Of course, place their digital dealership in the right position even with an ever-growing market, simply to make the most of this evolution. After all, having a website is only half the battle – no timing is everything. matter how many ‘wow factors’ are incorporated It’s certainly sad news for many businesses, but in its design. With more people spending more for automotive dealers the shift from the high time and money online, web marketing is of street to the web has essentially dropped a coach vital importance. load of customers off on their digital forecourt.

Sir Martin Sorrell recently said of balancing An effective marketing strategy will turn those marketing budget: ‘You or I spend, according to visitors into customers and attract even more as statistics, 20 per cent of our time online. So the the market grows.

‘Online traffic has continued to grow in the face of the high street collapse.’

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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. 10 June 2009. London

Financial Crime, Fraud and Risk Conference For Asset Finance, Consumer Credit and Motor Finance This new industry-wide event addresses nancial crime, fraud and risk issues affecting Asset, Consumer and Motor nance.

Book now for this essential industry event on Financial Crime.

Hear from leading experts in fraud and crime prevention, as well as keynote presentations from top authorities including Dr Bernard Herdan, Chief Executive Ofcer, National Fraud Strategic Authority.

There will be optional breakout sessions of specic interest to each division during the day. Issues that will be covered include insider fraud; data security; asset recovery; credit card fraud; and motor nance fraud.

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.

CarDealerIss15.indd Car Dealer - Financial Crime62 eve1 1

8/5/09 09:47:50 01/05/2009 11:14:35

cult cars servicing

in association with the motor Industry Code of Practice

Servicing ignored ‘to save money’ 0

Cracking the Code Chris Mason says it’s been a long journey but we’ve turned a corner

Poll shows motorists are skipping servicing to save cash in the recession

S

hock findings from a new poll shows that nearly half of all motorists are ignoring car servicing. A Nationwide Autocentre study revealed that 45 per cent of the UK are prioritising their cash on basics such as food, clothing and fuel, rather than on car maintenance.

What’s more, 27 per cent actually RESENT their cars – due to the money they are shelling out on them. This could impact on revenues from aftersales and car servicing.

Nationwide MD Duncan Wilkes said: ‘All of a sudden, most people have to think twice about what they’re spending their money on.’

Car maintenance is one area motorists are pinpointing savings. And, while this could ultimately cost car owners more, says Wilkes, it also shows that motorists are putting costs before the environment. That’s despite the same survey showing that more than a third of people are also worried about the impact their car is having on the environment.

Mixed messages? Maybe – but dealers should note that saving cash will always come first.

A well serviced and maintained car is much more likely to run efficiently, making it more eco friendly. Wilkes adds that, in many cases, being green is cheaper in the long run.

Despite being told this, car owners still prefer to take the money rather than look to the environment. Hence, the need for any green car incentive schemes to prominently display the cash they’ll save car buyers, too…

Drivers are ignoring servicing to save cash Meanwhile, Excellence in Aftersales reigning champs Moorland Motors have scooped the top Vauxhall award again. The Fylde car dealer has triumphed over 200 other Vauxhall outlets to win the aftersales service gong.

Delighted MD Tony Boyd praised everyone in the 36-strong team for their role in retaining the award. Naturally, providing good customer service has been key to this.

‘Regular audits prove that we consistently do that, with the servicing side of the business recently achieving a 100 per cent fixed right first time customer satisfaction score.’

Aftersales service is something Boyd places much emphasis on, as a means of weathering the recession. The Blackpool car dealer supports Vauxhall, Chevrolet and Saab customers, from a 17-bay service centre. More than 20 staff turn over a remarkable 18,000 cars a year!

ccasionally it is good to reflect and take time to remember how things got started and to consider the progress made. You will recall that it was nearly four years ago the National Consumer Council published its report ‘At a Crossroads’ and the industry took the opportunity to have a long hard look at how it could best alter the perceptions held by consumers about the way they were treated by garages.

This gave rise to the development of the Motor Industry Code of Practice for Service and Repair which was introduced to the trade less than a year ago and can now proudly claim to have the largest number of subscribers to any one industry code by some margin.

It is not only the best, most effective and cheapest marketing tool open to the garage sector, it is supported by government and so should really be the first choice of scheme for a business to embrace.

We recently announced that a leading fleet management and funding specialist confirmed it is including the Code in its supplier agreements because the requirements fit the organisation’s business aims and commitment to its customers.

By specifying the Code as a minimum standard, it gives that organisation the confidence that its vehicles will be professionally maintained for the benefit of its customers.

It is examples such as this that demonstrate we have got it right and our efforts are being recognised out in the marketplace.

We have travelled a respectable distance and made good progress, but make no mistake, we are not standing still. Nor is the route narrow – there is plenty of room for more of you to join us and help demonstrate that the sector is capable of managing its own affairs in the interests of all.

For more information see motorindustrycodes.co.uk

RMIF warns body repairers risk going unpaid for work RMIF executives have warned vehicle body repairers to urgently review their contacts – or risk going unpaid for work they have carried out.

The car dealer body says companies sourcing work from accident management companies should take a close look at contracts, to ensure payment is guaranteed.

This is due to the risk of work providers

collapsing in current tough economic conditions. Some accident management companies do not separate repairers’ funds from their own. This means payments are at risk if the company goes under.

Warning signs, says the body, are if the company asks to extend credit days, or alters the terms of the arrangement.

‘The RMIF has petitioned for repairers

funds to be held separate to accident management companies’ own funds, and would like to see the same across all work providers,’ explained RMIF director Sue Robinson.

‘Businesses can usually be confident with major insurers, but may need to be more diligent when seeking payment from minor insurers and accident management companies.’

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

trade_ad190x30a.indd 1

2009 11:14:35 CarDealerIss15.indd 63

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

19/12/08 16:58:00 CarDealerMag.co.uk | 63

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...in association with Really good domains

dot com

...in association with Really good domains

Approaching our milestone As the company moves towards its 10th anniversary, Really Good Domains looks back at how it all began on the worldwide web

T

he internet can be an unforgiving place.

You need your wits about you to make the most of the undoubted, and almost limitless, potential of the platform.

For companies which are solely internet-based you need to have the ability to thrive and prosper when others simply fall by the wayside.

Really Good Domains – which runs ContractHireAndLeasing.com, SaveMoneyOn Cars.co.uk and CarSupermarkets.co.uk to name three – is rapidly approaching an important milestone, its 10th anniversary.

In the highly competitive online automotive industry this provides all the proof you need that the company continues to deliver tangible results to hundreds of advertisers large and small.

Back in the heady days of the technology and dot com boom of the late 1990s (before the bubble burst!) the company quickly picked up on the fact that the internet would swiftly become the perfect advertising and information platform, due to its universal adoption and instant accessibility. The company quickly started to speed on the motorway that is the ‘information superhighway’!

Being an early adopter doesn’t necessarily mean instant success – can anyone remember the online retailer boo.com? Exactly.

Really Good Domains formed around the crucial idea that there was a lot of frustration in the motor trade over copy deadlines and traditional printed media such as newspapers.

Often advertising would be out-of-date as the printing presses rolled – frustrating for both the advertiser and the very people the advertiser wished to communicate with.

Despite the current recession the company continues to grow from strength to strength

‘Really Good Domains formed around the fact there was a lot of frustration in the motor trade with printed media.’ running a wide variety of highly popular motoring websites, which cater for almost every facet of the automotive industry. This is further emphasised by the recruitment drive for staff across all departments!

These websites include ContractHireAnd Leasing.com which has been at the centre of the contract hire and leasing industry for almost nine years putting hundreds of advertisers in front of the largest UK leasing audience on the internet.

SaveMoneyOnCars.co.uk specialises in advertising new and nearly new cars to a huge audience of people looking for a good value deal on their next motor, while TheVanWebsite.co.uk is the most popular light commercial vehicle website in the UK.

Keen to cater for other areas popular in the industry, the company operates the leading car supermarket website – CarSupermarkets. co.uk, the most popular fleet website in the UK: FleetDirectory.co.uk, and directory website CarAndVanAuctions.co.uk.

Responding to the increasingly informationled internet, two further popular websites are about to celebrate their second birthdays with RoadTestReports.co.uk and TheGreenCar Website.co.uk making waves in the car review and environmentally-friendlier vehicles sectors – both growth areas in the industry.

As internet usage becomes ubiquitous among all groups of society it has become the first port of call, and in increasingly more cases the only port of call for people looking to research and choose their next vehicle. In the current difficult trading conditions shouldn’t you put your trust in a company that has the experience and portfolio to put your message in front of a monthly audience of 1.9m users?

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 | 65 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 CarDealerIss15.indd 65 8/5/09 09:48:04 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

Scrappage for vans too! the government didn’t forget CV retailers when it announced its scrappage scheme...

C

ommerical vehicle dealers were given a welcome boost by the inclusion of CVs in the new car scrap scheme. Vehicles up to 3.5 tonnes will be eligible for the £2k discount, which could provide a much-needed boost to a sector facing severe pressure.

Van production in the UK has declined by nearly two-thirds, and sales remain flat as businesses weather the full effects of the recession.

The government will be hoping further stimulation of the already popular car-derived and small van sector will encourage many more individuals to buy a new commercial vehicle.

One analyst said a regrettable side-effect of the recession could even help stimulate the CV sector. As more redundancies occur, some will decide to set up by themselves.

This can boost sales – as a van is often an essential tool of that start-up.

BCA’s Duncan Ward said: ‘With increasing numbers of redundancies in manufacturing and engineering, many of these skilled trades people will strike out on their own and the first thing they will buy with their redundancy money is a van.’

If the government initiative can further help sales, then the UK van dealer industry could just begin to emerge from some of the toughest times it has faced.

This will come as a boost to Ford CV dealers.

The marque has perfectly timed its announcement that its van range is to get green Econetic variants. Later this year, an Econetic version of the famous Transit will go on sale. A model that will average nearly 40mpg, and emit just 189g/

km of CO2. This is an exceptional achievement for Ford, and will perfectly fit in with the changing demands of many businesses.

Green policies throughout the business world are increasing – and are now covering all aspects, including vehicle choice.

By retailing one of the most fuel-efficient vans on the market, Ford dealers could be well placed to take advantage of this opportunity.

Particularly as they’ll have other, even greener, Econetic small vans to sell, too – Ford is to retail an Econetic version of the just-facelifted Transit Connect and Fiesta Van.

Used rise for LCVs? MYTHS that ‘vans always go cheap at auction’ are causing dealers to suffer shrinking margins. Retail buyers’ attendance at auctions – like the one above – means prices reached can often nudge retail levels. This is eliminating the profit margin for dealers.

While this is bad for buyers, it’s good news for vendors, who simply have to ensure their standards are high and consistent.

Simple? Not according to Glass’s van expert, George Alexander: ‘Unfortunately, mounting recessional pressures have hit the leasing and rental companies hard and, in some quarters, the fundamentals of vehicle preparation are being overlooked.’

Best leave those for the retail punters, then…

But while dealers should be cautious in the stock they choose, they should expect buoyant demand for vans to continue. At least for the near future.

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8/5/09 09:48:09 5/5/09 14:34:32

:34:32

Peering into the lives of the motor trade...

on The Spot

Name: Nigel Williams Age: A very young 53 Lives: Monmouth Any family? Wife and two grown-up children.

How much do you earn?

Enough to keep a family of four going but not enough to run a Lamborghini, a yacht or an Italian villa.

What do you drive? Audi estate.

Do you have an average day and how does it pan out?

I don’t do average days, everyone is different. A phone call or an email can easily change the shape of any plans, which always need to be flexible.

What was your first job?

I had a holiday job working in a dairy making cheese, and no it hasn’t put me off!

What was your first car?

Morris 1000 pick-up with a canvas roof.

Who do you work for now?

BEN, the automotive industry charity which provides help and support to members of the automotive and related industries past and present and their families.

What does this involve?

As head of national development I’m looking to maximise on corporate support from a wide

portfolio of industry contacts both existing and new.

What are your job’s biggest challenges? Making sure people understand the breadth of support that BEN are providing from our residential centres to helping 16,000 men, women and children every year.

Any downsides? None, every challenge is another opportunity.

What newspapers/magazines do you read? I’ve read The Times for many years. The magazines that fall out of the weekend papers are enough to keep me going!

What is the most expensive thing you’ve ever bought?

The most expensive thing I’ve got is my children, especially my daughter.

What’s your mobile phone ring tone? An old telephone ring.

What was the first record you bought? King Crimson, In the Court of the Crimson King.

Favourite film? Godfather 2 with Al Pacino and Robert De Niro.

Favourite drink? Apple juice that has been left to mature!

Have you got any superstitions? Always salute that single magpie!

What is the biggest challenge car dealers face?

Finding ways to increase customer loyalty.

Number one tip for car dealers? Look after your customers and they’ll reward you for it.

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

Don’t expect anyone to do anything you wouldn’t do yourself.

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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products 1. SmartNav Mobile

Price: Free download and 30-day trial Contact: trafficmaster.co.uk/mobile SMARTNAV has launched a version of its popular guidance system for mobile phones. With the original built-in kit you press a button on the dash, tell the operator your destination and they send the details of the route to you via a mobile connection. The new mobile phone software comes as a download and currently works on Windows Mobile-based models. Calls to the PA are charged at 59ppm – but considering you’re on the phone for around 60 to 120 seconds per route, it’s not too expensive. However, there’s a monthly (£4.95) or yearly (£49.95) subscription to consider on top of this too. On test we had mixed results.

1

2. Magicbox the Imp

Price: £90 Contact: lusonic.com IF YOU’RE into listening to music on the internet, The Imp lets you tune into thousands of online radio stations from around the world. It’s surprisingly simple to set up. You need a WiFi network to use it in your garage, but it lets you search for stations by country, genre or station name, and store your favourites on 10 presets.

3. Ring Daytime Running lights Price: £39.99 Contact: ringautomotive.co.uk IT was only a matter of time before these arrived on the market! Now that daytime running light look isn’t just available at Audi and Aston Martin dealers, thanks to these new strips from Ring. The flexible tubes are easy to shape to the contours of headlamp clusters and they simply stick on under the lights. Each strip has 18 highintensity white LEDs encased inside.

4. Metro 4-Way Socket

Price: £12.99 Contact: saxon-brands.com YOU’RE on the road, your mobile phone battery’s died but you’re lost and using your sat nav.

What to do? It’s the conundrum of all conundrums, but one that’s easily solved if you’ve got one of these. The Metro 4 Way Socket Adaptor, as the name suggests, not only offers you power for two gadgets, but four! The joy! There’s two 12v power sockets and a brace of USB slots.

5. Big Wipes

Price: £4.89 (per tub) Contact: bigwipes.com THESE wipes come in a range of varieties to tackle cars. Each re-sealable tub contains 40 wipes and currently the range includes Glass, Leather, Protectant, Interior and Exterior versions. The Glass, Interior and Leather versions all performed superbly. However, the Exterior wipes weren’t great, spreading dirt around rather than cleaning it off.

4

5

6. Auto Glym Aqua Wax

Price: £13.99 Contact: autoglym.co.uk AUTO Glym’s Aqua Wax is sprayed on directly after washing and rinsing while the car is still wet. You apply the product, which contains carnauba wax to all exterior surfaces, and then wipe down with one of the two microfibre cloths supplied. The finish it left on our white Ford Focus test bed was nothing short of retina-burning.

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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

GAIN MORE BUSINESS IMPROVE YOUR PROFIT MARGINS ENHANCE YOUR REPUTATION GAIN AND KEEP REPAIRS FROM YOUR CUSTOM BASE

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 CarDealerIss15.indd 72

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

8/5/09 09:48:17

...in association with Winn Solicitors

accidents

looking after customers when they need it most Have you got an accident management policy in place at your dealership? You could lose customers if you haven’t, says Winn Assist managing director Jeff Winn

M

ore car dealerships are adopting a broker-style accident management service for their customers to provide them with a better accident experience and increase brand loyalty.

Brokers provide a premium service to their customers. They survive and prosper by ensuring, whether the accident is a fault or non-fault, that their customer is looked after. Brokers have been involved in outsourcing their accident management service to specialists for 20-plus years. Contrary to many opinions, a significant number of brokers have grown their business by adopting the right accident management service strategy and the right accident management company to provide it. The retention rates and capture of new business are essential for the survival and prosperity of brokers.

A high quality accident management service results in increased retention and new recommended clients. Several of the insurance brokers with whom we provide a service have seen their client base more than double in the past five years despite competition from aggregators.

But how do you translate this to a dealership service? Well, dealerships are in a similar position to insurance brokers. They survive and prosper by offering a higher level of service and commitment to customers than they would receive elsewhere – dealerships prosper or fail based on the service they provide.

Most dealerships put in significant management time, training and effort to ensure that their sales, servicing and warranty business are undertaken to the highest standards.

Many dealerships have not put the same level of effort into considering their arrangements for dealing with customers who have suffered an accident. We have found that an understanding of the accident management market and what is on offer for both customers and dealerships is sketchy. We believe this is an area that dealerships should seek to understand as it is crucial to ensure a high quality service to customers.

If you don’t know what an accident management service provider does, it’s time to find out Shortly after that I found out about accident ‘Putting in place a full accident management services and the ability to claim management service with directly from the insurer of the driver at fault.

I spoke to my Jaguar dealership and asked why the right provider can be a they had not referred me to this route. They said win-win for both you and they were vaguely aware of such a service but didn’t know anything much about them – I felt your customers.’ let down and never used them again.

Approximately 14 years ago I suffered a nonfault accident and my first port of call was my local Jaguar dealership. They told me to make a claim through my insurance company for the non-fault accident and I followed their advice.

As a result a non-Jaguar panel was used on my vehicle for the repair, I had to pay an excess, my insurance premiums went up, I got no reduction in value payment and I received a small car during the repair.

I didn’t know about the non-fault route at the time and I lost in the region of £5,000 as a result of an accident which was not my fault. If the dealership had a proper accident management service this would not have happened and they would have protected my interests.

The one benefit was that out of this experience I set up Winn Assist to provide just such an accident management service to brokers, bodyshops, dealerships and directly to the public.

With there being a greater understanding of the protection available for non-fault drivers, the dealership who fails to provide a ‘service’ is likely to suffer when their customer eventually finds out that they could have made a referral to protect them but failed to do so.

If a full accident management service is put in place there are considerable benefits for the dealership as well as the customer. Putting in place a full accident management service with the right provider can enhance your brand and be a win-win for both you and your customers.

CarDealerMag.co.uk | 73 CarDealerIss15.indd 73

8/5/09 09:48:18

auctions

Fiesta success at first sale Ford celebrates new city cars hitting BCA auction for first time as land Rovers sell well at Manheim sale

F

ord’s all-new Fiesta has just been launched to the BCA used car auction halls – with its baby sibling the new Ka. BCA Nottingham handled the sale, which Ford said generated ‘excellent’ results. Fifteen new Ford Fiestas averaged 85 per cent of list – and BCA claimed there were a number of highlights from the event.

These included a Fiesta 1.4 Titanium 3dr making £11,400 (87 per cent list), a Fiesta 1.6 Zetec S returning £11,650 (86 per cent list) and a 1.4 TDCi Zetec Fiesta making £11,500 (88 per cent list). A 1.2-litre Ka Style also made £7,600, or 88 per cent of list.

‘The prices we achieved were our best result at a first-time launch auction, reflecting the quality and style of the new Fiesta,’ said Jon Wellsman, sales director for Ford of Britain.

‘We were hoping for around 75 per cent so the results exceeded our expectations and confirmed that we have a desirable small-car line up.’

BCA’s Ford account manager Alan Gupwell added: ‘This high profile event marked a very successful launch for new Fiesta and Ka, and in the current economic climate, sends a significant message to the marketplace about the strength of the Ford brand.’

Wellsman also said the wider economy could have had a part to play in the sale’s success: ‘The used market has changed dramatically over recent months, and I think some customers question leaving money in the bank on low interest, when they can get a new or used car.’

Meanwhile, it was good news over at Manheim too with conversion rates of 100 per cent for Land Rover at a recent auction – proving 4×4s are still in favour.

Manheim reported that more than 200

Ford models have been selling well at BCA – including the new Fiesta and its sibling Ka

‘The prices we achieved were our best result at a first-time launch auction, reflecting the quality and style of the new Fiesta.’

Land Rovers, offered by Ford Credit, were sold achieving an average CAP Clean value of 101.5 per cent.

This continues a resurgence in the SUV sector that has been underway since the beginning of 2009.

Ford Credit’s Colin Normoyl said: ‘Interest came from both franchised and non-franchised car

dealers and the event exceeded all expectations. Bidding was brisk and, in some cases, frantic, as buyers both physical and online fought to secure stock.’

Vehicles sold were mainly Freelander 2 and Discovery 3 models – although there was a smattering of Range Rovers and Range Rover Sports.

Manheim’s MD, Mike Pilkington, was pleased that momentum seems to be continuing well into April.

‘The results from the Land Rover sale, on behalf of Ford Credit, clearly show that demand for good quality used vehicles is strong – even in the 4×4 sector, which suffered so heavily in 2008,’ he said.

ZERO FREE 100% BUYER FEES DELIVERY MONEY BACK (MAINLAND UK ONLY)

CONDITION REPORT GUARANTEE

Cost | Convenience | Credibility Regular online live auctions:

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

74 | CarDealerMag.co.uk CarDealerIss15.indd 74

8/5/09 09:48:19

WE’LL KEEP DOING WHAT

WE DO BEST No-one keeps the used car market moving like BCA. And 2009 will be no different.

We’ll continue to sell hundreds of thousands of vehicles this year across 21 auction centres.

And we’ll continue to offer you pioneering online tools like Auction View, Live Online and My BCA, to give you more ways to buy and view vehicles than ever before.

www.bca-europe.com

We never stop

Prime & Sub-prime Motor Finance Please Fax 08444 142200 Telephone

08444 142100

Vehicles under 6 Years old and less than 60k miles Glass’s Guide Trade Lend £3k - £50k Personal Loans £3k - £15k Proofs Required: Full UK Driving Licence - UK Passport - Comp Ins Cover note – Utility Bill Last 2 Months Bank Statements proving income & mortgage/rent paid

www.clementscarcredit.com

CarDealerIss15.indd 75

email tony@clementscarcredit.com

8/5/09 09:48:19

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8/5/09 09:48:20

...Advertisement feature

automation

Radical promotional move keeps WinWin in front To highlight its clever new software systems for dealers, WinWin World has sponsored a rapid racecar series

T

he Dunlop Great & British Motorsport Festival is one of the most exciting fully televised events in the European racing calendar. This event is featured on Sky Sports with every event potentially watched by up to 15m racing fans here in the UK and throughout Europe.

As WinWin’s latest lead management system for showroom vehicle sales has been designed with a 3D racing theme to give salespeople a competitive edge, it made great sense to promote its release by sponsoring a race car and using the publicity for advertising and promoting the new product. After all, most car sales people are interested in cars.

That’s why WinWin World are now one of the main sponsors of the BM Racing Radical SR8 for the 2009 racing season.

This SR8 is not just any old racing car. The Radical is quite simply the world’s fastest production sportscar, holding the lap record around the world’s longest and most arduous track – the Nürburgring Nordschleife.

For the more technical minded, performance is provided by Powertec which includes superbike technology in the cylinder heads and Formula 1 technology everywhere else. The 2.6-litre V8 engine produces 380bhp making the powerto-weight ratio around 700bhp per ton – that’s twice as much as a Porsche GT2.

Acceleration and braking is so quick in this car that in the time it takes the Porsche to accelerate from 0-100mph the Radical will have done 0-100 and back to a standstill. And let’s face it, the GT2 is a quick car!

Michael and Ben Jackson are the works team drivers for the Radical factory. They are managed by John Miskin, who is well respected in

WinWin World has sponsored the BM Racing Radical SR8 for the 2009 racing season

‘Acceleration is so quick in the Radical that in the time it takes a Porsche 911 Gt2 to hit 100mph, the SR8 will have done the same and back to a standstill. And let’s face it, the Gt2 is a quick car!’ motor racing circles after 30 years’ dedication to the sport.

Michael is well known to the motor industry as he was the head of Jackson Consultancy plc, the largest and most successful sales training company in the industry in the late 90s.

Michael was also creator and founder of Goodmanners and chairman of e-Goodmanners, the world’s leading brand of showroom lead management systems, before leaving the business and going full-time into motorsport.

Ben has been tipped as one of the most promising young drivers in the UK and certainly one of the fastest.

With WinWin plastered all over the car we should be in for a cracking season! For those who may be interested in attending or watching

on television, there are a number of events that feature in Dunlop’s Great & British Motorsport Festivals package and two are combined with Radical European Masters events.

Race formats are either two 50-minute races or a single 75-minute race with a fuel stop in addition to a driver change. All Great & British events are also televised on Sky Sports: Brands Hatch, June 5-7; Donington Park, July 3-5; Castle Combe, July 17-18; Silverstone, September 11-13; and Snetterton, September 25-27.

WinWin World quite simply have the best and most effective CRM package for car dealers available here in the UK. Everything is modular, so where dealers already have partial solutions WinWin can still help.

WinWin provide everything from lead management and deal optimisation to managed customer contact throughout. If you want to keep your customers, have a fair crack at all of their business and continue to chase everyone else perpetually, WinWin can lead the way for you.

If there’s any part of your business you want to expand, WinWin can help and it will not cost you anything – a real WinWin. Call 020 7538 6688 or email callmenow@ winwinworld.co.uk for more information For more details on the Radical see bmracing.org or radicalsportscars.com

CarDealerMag.co.uk | 77 CarDealerIss15.indd 77

8/5/09 09:48:22

competition

Your chance to WIN TomTom sat nav unit!

I

n these crunchy credit times, more and more of us are opting for a holiday in the UK. Not only is it cheaper than heading abroad, but there are still some fantastic places to visit across the UK. What’s more, if you’ve got a tasty demonstrator, why not fill it up and head off in that – it’s cheaper than hiring a car (or taking your own) and a great way to get familiar with the motors you’re selling. ‘Well, sir I can assure you the boot will take a week’s luggage for a family of four – I know because I did it myself…’ Nothing works better as sales technique than a personal experience!

But there are risks with taking your wellearned rest on these shores – the weather and traffic. Unfortunately we can’t help you with the weather, that’s still just beyond our powers, but we can help with the traffic and help you avoid getting lost at the same time.

We’ve teamed up with Halfords to offer one lucky reader the chance to win a TomTom 540 LIVE sat nav unit. It’s one of the latest from the guidance experts and is packed with

features. The sat nav combines TomTom IQ Routes with dynamic information from the maker’s HD Traffic service, a real-time jam busting information system.

This provides information of queues as and when they occur, giving you the option to scoot around them – perfect when you and the rest of the country are holidaying in the UK! The 540 also features TomTom Map Share, that updates maps depending on the experiences and information gleaned from others.

As part of the package you also get a threemonth trial to TomTom’s live services which include that aforementioned traffic information, speed camera alerts, fuel prices, oh and information on the weather. See, we can help there too!

The 540 has speech recognition to help you input addresses, handsfree kit for compatible Bluetooth mobile phones, advanced lane

guidance to help you on motorways and a local search facility powered by Google.

The unit comes with a 12v power cable, windscreen holder and desk dock for when you’re updating the unit at home.

And to top it all off, the 540 boasts TomTom’s latest enhanced positioning technology, which uses movement and gravity sensors to calculate your positions when GPS signals are not available. Handy. For more information, log on to halfords.com.

To be in with your chance to win the £279.99 unit we’ve got to give away, all you need to do is get in touch. There’s two ways to do it: 1. Send an email with the subject title ‘Halfords’ to james@blackballmedia.co.uk with your name and address.

2. Or send a text message starting with the word DEALER and then your name and address to 82085. Texts costs no more than your standard network rate.

We’ll pick the winner out of a hat (bowler) on June 4, so make sure you’ve entered by then – good luck!

78 | CarDealerMag.co.uk CarDealerIss15.indd 78

8/5/09 09:48:23

Don’t be left out! Call Car Dealer on (023) 9252 2434

suppliers guide

If you’re looking for a motor trade supplier you can find the details of selected companies here Accident Management WINN Solicitors T: 0800 917 8177 W: winnsolicitors.com E: solicitors@winn solicitors.com

Accountants Baker Tilly T: 01284 763311 W: bakertilly.co.uk E: ross.bartholomew @bakertilly.co.uk

Auctions Auction4Cars W: auction4cars.com BCA T: 0845 600 6644 W: british-car-auctions.co.uk E: Via website Paragon Remarketing W: paragonremarketing.com E: Contact@Paragon Remarketing.com

W: Bridford.co.uk E: sales@bridford.co.uk

E: sales@reallygood domains.com

Car Finance Company T: 0800 023 2440 W: thecarfinance company.co.uk E: Via website

Skupenet T: 020 8610 6103 W: skupenet.com E: info@skupenet.com Vansunited.co.uk T: 0845 265 5510 W: Vansunited.co.uk E: sales@vansunited.co.uk

First Response T: 0115 946 6370 W: frfl.co.uk E: Via website

Online Trading

Key Tracking Keytracker T: 0121 559 9000 W: keytracker.com/cd E: sales@keytracker.co.uk

Oils Mobil 1 W: mobil1.com E: Via website

Online Advertising

Call Recording

Compucars T: 0845 667 6000 W: compucars.co.uk E: Via website

VoiceSafe T: 0845 421 5050 W: voicesafe.co.uk E: enquiries@c-a-solutions. co.uk

Motors.co.uk T: 0845 265 5502 W: Motors.co.uk E: sales@motors.co.uk

Finance Bridford T: 0844 815 8888

Really Good Domains T: 0161 482 7650 W: reallygooddomains.com

Autotrade-mail.com T: 0870 2000 848 W: autotrade-mail.com E: sales@autotrade-mail.com Info: The UK’s leading online real time used-car trading network. The fastest place to buy and sell trade prime stock. The most active site of its type. Over 4,000 dealers subscribe. The professionals choice. Run by dealers for dealers. The original and the best. Call for your FREE two week trial.

Provenance Checks HPI T: 01722 435444 W: hpi.co.uk Apply at CarDealerMag. co.uk and register in the fold down corner tab

Rewards BlueRewards T: 0845 421 5050 W: bluerewards.co.uk/trade E: sales@bluerewards.co.uk

T: 0845 300 8939 W: hpi.co.uk Apply at CarDealer Mag.co.uk and register in the fold down corner tab

Software Dragon 2000 T: 0845 838 2000 W: Dragon2000.co.uk E: sales@dragon2000.co.uk WinWin World T: 020 7538 6688 W: winwinworld.co.uk E: callmenow@winwin world.co.uk

Text Services Car Text Services T: 0870 742 6655 W: cartextservices.co.uk E: Via website

Trade Bodies Motor Industry Code of Practice W: motorindustry codes.co.uk

Training FLA T: 020 7420 9613 W: specialistautomotive finance.org.uk E: Via website

Valuations HPI Valuations

Web Design Autotorq.com T: 020 7384 8501 W: autotorq.com E: enquiries@autotorq.com CDWD T: 0844 880 1630 W: CarDealerWeb Design.co.uk E: info@cardealerweb design.co.uk Info: Fed up paying web designers to do a job you can do yourself?

CDWD can help. We’ve collaborated with HPI to offer a truly unique product with no set up costs! Call us for more details.

Codeweavers T: 0870 443 0888 W: codeweavers.net E: enquiries@code weavers.net G-Forces T: 0845 055 9040 W: digitaldealership.co.uk E: info@gforces.co.uk

T: Telephone w: website address e: email address info: details of company’s services for the trade

CAR DEALER SUPPLIER GUIDE ENTRY FORM The Car Dealer Supplier Guide is a great way to get your company’s details in front of our army of readers every single month. Submitting your

Your Name [not for publication]

entry is easy – simply fill out the form below and send to us with a cheque made payable to BLACKBALL MEDIA to Blackball Media, The Old

Curiosity Shop, Church Road, Gosport, Hants, PO12 2LB. We’ll process your listing and include it in the next available issue.

Company Information

PRICING [Please choose duration of your listing]

[Explain in 50 words what your company offers dealers]

[ ] 1 mth: £34.99

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[ ] 3 mths: £79.99 (just £26.66 per month)

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[ ] 6 mths: £119.99 (just £19.99 per month)

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Please make cheques payable to BLACKBALL MEDIA and send to Blackball Media, The Old Curiosity Shop, Church Road, Gosport, Hants, PO12 2LB. If you prefer to be invoiced, enter address here. Invoices will be for full amount:

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CarDealerMag.co.uk | 79

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used cars

Stability at last?

Are car makers building stock people don’t want to buy, asks HPI’s Valuation expert, Martin Keighley

W

ith the stabilisation of the used car market, we’ve seen auction volumes rise. This is due mostly to increased fleet disposals rather than vehicles direct from dealers.

There is an oversupply of three to four-year-old higher mileage ex-fleet vehicles causing these values to fall a touch.

Much of this stock is in average condition at best, and dealers are just not interested in buying work. However, low mileage vehicles are in short supply, especially three to five-year-old small cars. Traditionally dealers would trade these, but they are now keeping them for retail, which means that they are a rare sight in the wholesale and auction markets.

Meanwhile, new car sales continue to fall, while new car prices continue to rise. Fleets are still buoying up the market but most manufacturers are struggling. Large fleet discounts abound and there are lots of retail incentive schemes. But punters only want small cars and there are now waiting lists for many of these.

The introduction of the scrappage incentive scheme will lead to longer lead times for some small cars which is all good news for the markets that manufacture and sell them. However, it’s unlikely that £2,000 will send people in their droves to the nearest 4x4 or prestige car showroom.

Depreciation continues to slow down, but retail activity remains patchy, according to HPI Used Car Valuations Index

A

fter the euphoria of used valuation rises during the first quarter of 2009, the used market is now showing some signs of stability. Most dealers and car supermarkets are either well stocked or as stocked as much as they want to be.

This ‘stocking up at any price’ activity caused some degree of market destabilisation and the resultant higher sale prices led to knee-jerk reactions in some quarters. The truth is – retail activity is still patchy.

Signs for optimism are continuing. All March to April values show an increase for the second month in a row, with 12-month cars going up by 4.3 per cent and 36-month cars creeping up by 3.5 per cent. 12-month petrol vehicles saw the biggest rise of 4.4 per cent, while 36-month diesel vehicles saw a rise of just 3.2 per cent.

All round month-on-month increases are largely due to the ongoing shortage of stock and the fact that cars still look very cheap.

The year-on-year rate of depreciation has decreased from 30.4 per cent to 26 per cent in April with all sectors performing well. All 12-month cars have seen a decrease from -24.1 per cent to -19.3 per cent, while 36-month cars are down from -30.4 per cent to -26 per cent.

Cabriolet sector 10 major fleet players Rank

Model

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

Also, 12-month petrol and diesel vehicles saw depreciation drop from -24.1 per cent to -19.3 per cent. Similarly, 36-month petrol sector dropped from -31.3 per cent to -27.4 per cent and diesels dropped from -29.4 per cent to -24.7 per cent.

Stability in May As predicted after the rises seen this year values for May show little change compared to April.

There is huge demand now for small, high spec cars as down-sizers try to hang on to their creature comforts. This has forced the value of these up, making larger, less economical cars look fantastic value for money The used wholesale market is very buoyant.

Small cars with low mileages continue to make very strong money at auction with retailers prepared to work with smaller margins. However, higher mileage and larger cars are still struggling to find buyers, with retail activity remaining very patchy. Although month-on-month rises will slow or even stall in the next few months, the year-onyear values should continue to improve.

Dealers and car supermarkets are well stocked

...in association with HPI valuations

Models in range

Average new price

Average RV 36(60) £

Average RV 36(60) % Monthly depreciation cost £

Audi TT Roadster Audi A3 Cabriolet MINI Convertible Mercedes SLK BMW 3-Series Conv BMW 1-Series Conv Audi A5 Convertible Porsche Boxster Volkswagen Eos Jaguar XK Conv

15 30 12 13 30 56 10 4 17 3

£30,989 £25,029 £19,578 £35,751 £38,543 £26,974 £34,882 £38,006 £24,697 £71,728

£15,190 £12,073 £9,175 £16,013 £17,118 £11,664 £13,705 £14,738 £9,397 £26,892

49.1 48.4 46.9 44.9 44.5 43.3 39.3 38.9 38.3 37.5

£439 £360 £289 £548 £595 £425 £588 £646 £425 £1,245

Daihatsu Copen MINI Convertible Nissan Micra C+C Citroen C3 Pluriel Mazda MX-5 (New) Peugeot 207CC Vauxhall Tigra VW Beetle Cabriolet Audi A3 Cabriolet Vauxhall Astra T’Top

1 12 5 5 6 8 16 7 30 20

£11,745 £19,578 £15,097 £16,055 £18,062 £17,968 £16,513 £18,682 £25,029 £21,448

£3,475 £9,175 £4,300 £5,250 £6,579 £6,369 £4,680 £6,321 £12,073 £6,294

29.6 46.9 28.5 32.7 36.5 35.4 28.3 34.0 48.4 29.4

£230 £289 £300 £300 £319 £322 £329 £343 £360 £421

80 | CarDealerMag.co.uk CarDealerIss15.indd 80

8/5/09 09:48:25

...in association with HPI Valuations

More bad news, but is there hope on the horizon?

L

atest SMMT new car sales figures show the gloom continues for car dealers, with a decline of 24 per cent over 2008.

April 2009’s figures mark the 11th straight fall in new car registrations: the market in 2009 is so far down over 28 per cent. Furthermore, 2009 is the WORST April since 1991!

Yet the SMMT is trying to remain upbeat.

‘The UK motor industry continues to demonstrate its strength and resilience throughout,’ said SMMT chief Paul Everitt. ‘Despite the tough

conditions, the industry is hopeful that its prospects will improve in the coming months, and the steps it has taken will provide the basis for a sustained recovery once growth returns.’

This month’s new car scrappage scheme is expected to give an immediate boost in new car sales – the scheme gets under way on May 18. Which will, adds Everitt, help strengthen a vital UK industry.

‘The UK motor industry remains of strategic importance, and will play a key part in generating jobs and prosperity into the future.’

Only the mini segment saw a sales increase in 2009, recording a staggering 54.3 per cent rise.

Diesel market share slipped for the second month running, as high pump prices and list price differences begin to bite.

April top 10 best sellers: 1. Ford Focus (8,974) 2. Ford Fiesta (8,395) 3.

Vauxhall Corsa (7,808) 4. Volkswagen Golf (4,814) 5. Vauxhall Astra (4,549) 6. Vauxhall Insignia (3,262) 7. Peugeot 207 (3,136) 8. Audi A3 (2,439) 9. Ford Mondeo (2,356) 10. Vauxhall Zafira (2,140).

SMMT sales data April / year to date

Figures supplied by SMMT

April Marque

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

2009

100 686 91 7,111 65 4,960 7 1,361 176 4,567 5 124 0 276 2,548 24,579 5,712 7 2,183 1,786 215 2,208 1,541 551 41 2,692 5,086 26 1,633 753 4,194 47 6,760 428 53 3,368 0 0 646 1,303 2,433 706 39 201 907 0 6,218 20,665 12,188 2,032 92 105 133,475

% market share

0.07 0.51 0.07 5.33 0.05 3.72 0.01 1.02 0.13 3.42 0.00 0.09 0.00 0.21 1.91 18.41 4.28 0.01 1.64 1.34 0.16 1.65 1.15 0.41 0.03 2.02 3.81 0.02 1.22 0.56 3.14 0.04 5.06 0.32 0.04 2.52 0.00 0.00 0.48 0.98 1.82 0.53 0.03 0.15 0.68 0.00 4.66 15.48 9.13 1.52 0.07 0.08

Year to date (YTD) 2008

0 388 203 8,765 170 8,167 11 1,155 561 5,757 0 217 3 179 4,966 25,498 6,802 9 1,828 2,257 259 2,604 2,873 868 63 3,133 6,068 0 3,109 1,344 4,397 50 10,186 634 143 9,163 0 0 1,452 1,861 4,137 659 38 409 1,263 1 8,504 26,487 16,159 2,628 101 139 175,668

% market share

0.00 0.22 0.12 4.99 0.10 4.65 0.01 0.66 0.32 3.28 0.00 0.12 0.00 0.10 2.83 14.51 3.87 0.01 1.04 1.28 0.15 1.48 1.64 0.49 0.04 1.78 3.45 0.00 1.77 0.77 2.50 0.03 5.80 0.36 0.08 5.22 0.00 0.00 0.83 1.06 2.36 0.38 0.02 0.23 0.72 0.00 4.84 15.08 9.20 1.50 0.06 0.08

% Change

0.00 76.80 -55.17 -18.87 -61.76 -39.27 -36.36 17.84 -68.63 -20.67 0.00 -42.86 -100.00 54.19 -48.69 -3.60 -16.02 -22.22 19.42 -20.87 -16.99 -15.21 -46.36 -36.52 -34.92 -14.08 -16.18 0.00 -47.48 -43.97 -4.62 -6.00 -33.63 -32.49 -62.94 -63.24 0.00 0.00 -55.51 -29.98 -41.19 7.13 2.63 -50.86 -28.19 -100.00 -26.88 -21.98 -24.57 -22.68 -8.91 -24.46 -24.02

2009

408 2,294 404 32,174 261 27,104 21 4,797 725 21,094 21 787 7 545 14,009 106,994 25,601 40 11,209 6,337 611 10,788 9,657 2,815 151 15,012 21,832 77 10,107 2,812 19,531 179 31,999 1,860 286 18,198 0 0 3,981 8,786 8,904 2,379 154 1,002 8,009 0 33,184 85,637 50,903 9,411 316 420 613,833

%market share

0.07 0.37 0.07 5.24 0.04 4.42 0.00 0.78 0.12 3.44 0.00 0.13 0.00 0.09 2.28 17.43 4.17 0.01 1.83 1.03 0.10 1.76 1.57 0.46 0.02 2.45 3.56 0.01 1.65 0.46 3.18 0.03 5.21 0.30 0.05 2.96 0.00 0.00 0.65 1.43 1.45 0.39 0.03 0.16 1.30 0.00 5.41 13.95 8.29 1.53 0.05 0.07

2008

0 2,260 700 39,701 774 41,493 70 7,132 2,727 31,780 6 2,232 16 2,051 20,873 130,120 38,901 46 11,024 7,479 1,884 12,476 16,411 4,576 251 19,190 29,071 0 15,447 8,118 27,939 216 48,183 2,875 750 41,226 1 3 6,876 12,238 14,367 2,658 306 2,241 10,296 1 42,501 117,543 68,636 12,162 353 837 859,017

%market share

0.00 0.26 0.08 4.62 0.09 4.83 0.01 0.83 0.32 3.70 0.00 0.26 0.00 0.24 2.43 15.15 4.53 0.01 1.28 0.87 0.22 1.45 1.91 0.53 0.03 2.23 3.38 0.00 1.80 0.95 3.25 0.03 5.61 0.33 0.09 4.80 0.00 0.00 0.80 1.42 1.67 0.31 0.04 0.26 1.20 0.00 4.95 13.68 7.99 1.42 0.04 0.10

% Change

0.00 1.50 -42.29 -18.96 -66.28 -34.68 -70.00 -32.74 -73.41 -33.62 250.00 -64.74 -56.25 -73.43 -32.88 -17.77 -34.19 -13.04 1.68 -15.27 -67.57 -13.53 -41.16 -38.48 -39.84 -21.77 -24.90 0.00 -34.57 -65.36 -30.09 -17.13 -33.59 -35.30 -61.87 -55.86 -100.00 -100.00 -42.10 -28.21 -38.02 -10.50 -49.67 -55.29 -22.21 -100.00 -21.92 -27.14 -25.84 -22.62 -10.48 -49.82 -28.54

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

CarDealerMag.co.uk | 81 CarDealerIss15.indd 81

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tail light

Sub-Prime Time T

he motoring press is jam packed with articles and comments in regard to the new scrappage scheme – so here’s my two pennies worth from a non-standard point of view.

Hopefully I can offer some practical advice on how new car dealers can get the maximum opportunity out of this scheme, as I believe we’ll find that there’s a real opportunity here from a non-standard lending viewpoint – but there are issues to overcome.

I think we’ll find that a strong proportion of the customers that have 10-year-old cars will fall into the non-standard category and these customers don’t usually consider buying a new car. Most non-standard customers prefer to use small to medium-sized dealers that stock used cars and in general shy away from the larger new car dealerships that seem less approachable.

So here’s the thing, a large proportion of the target market for this scrappage scheme will fall into the nonstandard category and won’t be very comfortable or used to going to a new car dealer to buy a car.

But what does this mean for new car dealers and what can you do to ensure you’re getting the most of the scrappage scheme. Firstly, expect and prepare for the fact that a good proportion of the customers wanting to buy under the scrappage scheme will be non-standard.

The £2,000 coming from the scheme is likely to be all or most of what the customer has to put into the new deal, so there will be good opportunities for point-ofsale finance and F&I income, so you need to make sure your sales people are prepared for this.

Generally most non-standard customers don’t want to discuss the details of their past financial difficulties directly with staff in the dealership. So, when you do have a non-standard customer looking for a new car, pass them over to a lender you can trust, and let them

‘I believe the scappage scheme will provide some real opportunity from a non-standard point of view – but there will be issues to overcome.’ deal directly with the customer so they can overcome any issues that arise.

The aim is to make the customer feel comfortable in the way they are being dealt with, and confident that they are being treated with respect and have an opportunity to buy a new car.

I’d also advise you to make sure you are working with a non-standard lender that has flexibility in their lending decisions, so they can ‘balance’ any issues that arise and maximise your acceptances.

Be aware that there are a lot of customers that are finding themselves categorised as non-standard for the first time, so again you’ll need your lending partner to help these customers accept this reality and in some circumstances will also down-sell the customer (with your help) to a more appropriate car for their current circumstances.

There are going to be good opportunities for lending to these customers under this scheme and the key is to recognise this and prepare your staff and lending partners in readiness for them.

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, Allan Hutchings, Mike Askew (not Big Mike!), Dave Timmis, Simon Evans, Will Baggott Commercial Manager Thanks to...

Duncan Chappell Peter Davies, 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.

82 | CarDealerMag.co.uk CarDealerIss15.indd 82

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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

CarDealerIss15.indd 83

8/5/09 09:48:28

PI ay m w ro is H ea f on gh iv ce ni u Dr ran U hro su ich e t In rw abl l No vai a ly on

Insurance

cover notes

within an hour, not a week!

7HETHER YOU CURRENTLY USE (0) OR NOT WE HAVE SOME GREAT OFFERS ON $RIVEAWAY TO HELP KEEP YOUR STOCK MOVING N &2%% ).352!.#% DAYS FREE INSURANCE FOR YOUR CUSTOMERS N &2%% 3%26)#% $RIVEAWAY IS FREE TO (0) $EALERS FREE INTRODUCTORY OFFERS ARE AVAILABLE TO NON (0) DEALERS N +%%03 9/5 ). #/.42/, 4HE CUSTOMER ARRANGES THE &2%% DAY INSURANCE POLICY FROM YOUR PREMISES N 30%%$3 50 4(% 3!,%3 02/#%33 7E EMAIL YOU THE COVER NOTE WITHIN AN HOUR SO YOU CAN TAX THE VEHICLE THERE AND THEN N ).#2%!3%3 #534/-%2 3!4)3&!#4)/.

9OU CAN GIVE YOUR CUSTOMERS &2%% FULLY COMPREHENSIVE INSURANCE FOR DAYS AND DELIVER THEIR VEHICLE SOONER THAN THEY EXPECTED N %!39 4/ 53% )T ONLY TAKES ONE PHONE CALL FROM YOUR CUSTOMER TO ARRANGE THE &2%% DAY INSURANCE POLICY N #/--)33)/. !6!),!",% #ALL US TO ½ND OUT MORE ABOUT OUR EXCITING NEW COMMISSION STRUCTURE

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THE GENUINE ARTICLE )NSURANCE UNDERWRITTEN BY .ORWICH 5NION )NSURANCE ,IMITED 2EGISTERED /F½CE 3URREY 3TREET .ORWICH .2 .' 2EGISTERED IN %NGLAND .O !UTHORISED AND REGULATED BY THE &INANCIAL 3ERVICES !UTHORITY #OVER NOT AVAILABLE IN . )RELAND !GE RESTRICTIONS APPLY .ORWICH 5NION $IRECT MAY DECLINE TO QUOTE IN SOME CIRCUMSTANCES MEANING THAT THE DAYS´ COMPLIMENTARY COVER CANNOT BE GIVEN /NLY ONE $RIVEAWAY INSURANCE POLICY IS PERMITTED PER CUSTOMER PER VEHICLE REGISTRATION NUMBER #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

CarDealerIss15.indd 84

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