Car Dealer Magazine: Issue 17 by Blackball Media

Issue 17 | August 2009 | CarDealerMag.co.uk | £3.50

[ RENAULT BOSS: We’ll hit back p31 ]

Driving the future of the motor trade

IKE H R E W O P S T E TT G R8 IP H S G A L F L A IV TO R IT! N E IV R D E ’V E W

Ewards 09 Launch

How YOU can be a winner

Scrap scheme success

ALSO INSIDE Big Mike’s Anatomy Of A Car Buyer

How to tell a Test Pilot from a Time Waster – our man in the trade reveals all

Meet the dealers defying the crunch

start Issue 17 | August 2009

‘ The TT RS has the involvement of a computer game. A very good, latest generation, Xbox 360 game certainly, but one where ultimately you feel impressed rather than excited.’ Audi TT RS road test, p22 I COULDN’T argue with the gruff voice on the end of the phone: ‘It’s Big Mike here Baggo,’ he growled. ‘Copy’s longer than usual this month, son. Sodding time-wasting punters are proper winding me up. Decided to write about ’em instead of flicking my cigar butts at ’em. Cut it and I’ll go and write for Motor Management instead.’ And with that veiled threat he was gone. Seeing as he’s been writing for us for a year now, and that he knows more Polish gangsters than a Dover immigration officer, I decided to let him ramble on. And I’m only guessing he’s had a bit of a tough month, because ramble on he did. So much so that we had to devote a whole five pages to his Anatomy of a Car Buyer rant. It certainly made me laugh though, and in the silly season, when punters are jetting off to the Costa Del Notalotta, we all need something to put a smile on our faces. His master moan starts on page 34. Enjoy. But it’s not all about having a laugh this month. We’ve also been covering some serious stuff too. The success of the scrappage scheme is sliced and diced by three manufacturers who have all

registered impressive gains thanks to the scheme. We’ve spoken to the marques’ bosses and their dealer networks to get the lowdown. Talk, as we went to press, was that the scrappage scheme was proving so successful the government’s allocated £300m could run out well before the deadline with 60k cars already sold under the scheme. But what I can’t work out is why Brown and his cronies don’t just continue it indefinitely? It’s a great boost for the economy and the increased VAT receipts are more than covering the costs. One colleague on Twitter (thanks @carcaredirect) summed it up perfectly – in less than 140 characters of course – saying this: ‘60,000 cars @ let’s say £8k OTR = £480m sales = £72m in VAT versus £60m scrappage support from Gov. Nice earner!’ My sentiments, exactly. If you want to join the debate get in touch: twitter.com/CarDealerEd or by the usual means. Also in this issue we launch our annual hunt for the best automotive industry websites. We’ve got a host of new judges and combined they have a wealth of knowledge when it comes to the internet. To find out what they’ll be looking for and how to enter, check out pages six to eight. I look forward to seeing your entries flooding my mailbox.

And, continuing the serious theme, I’ve had the pleasure of interviewing the Renault UK MD this month. Just days after sales figures were released for May, that, on the face of it, looked disastrous for the brand, I was sat asking the chief what the reason was. His answers were frank and to the point – and made a lot of sense. Read the full interview on pages 31-33 and if you want a glimpse inside the French firm’s boardroom check out my blog at CarDealerMag.co.uk – what they’ve got on the walls makes interesting reading! And finally? Well, this month I’ve been mostly lusting after Audis. The first is the spiritual successor to the Audi Quattro, the TT RS. Nearly £50k is a lot to pay for a TT, I admit, but then this one’s pretty special. And that aforementioned Quattro? Well, check out our Sales Legends feature on page 26 and tell me you don’t still want one. Happy selling…

James Baggott, Editor

CarDealerMag.co.uk | 03

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ignition Issue 17 | August 2009

‘There’s mastery at work in the way the Quattroporte drives. An hour behind the wheel will have you pleading with the Gods to own one. Now it’s even more magnificent.’

Cult Cars: Maserati Quattroporte, p25

dashboard 06

Ewards 09

Our hunt for web winners begins plus expert advice on SEO

Tough love Fiat chief’s regime pays dividends

Aston Martin Cygnet

forecourt 20 22 25 26

Baby Aston based on a Toyota

Boat comes in Hyundai takes huge delivery

New Car Leads

features

Website revamped thanks to you

Scrap update Chevvy and Renault chiefs speak out

SEAT Exeo Audi TT RS Cult Cars: Maserati Quattroporte Sales Legend: Audi Quattro First Aid Finding the buyers that aren’t there

Renault exclusive UK boss on sales slump

Anatomy of a Car Buyer Big Mike’s exclusive guide. It’s funny

Scrappage Success The winners and losers in scrappage

47 49 51 53 55 56 60 63 64 66

Right Click Dot Com Servicing LCV Insight On the Spot Products Auctions Supplier Guide HPI Valuations Sub-Prime Time

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CarDealerMag.co.uk | 05

Car Dealer Ewards 09 CarDealer

CarDealer. I N A S S O C I AT I O N W I T H

autotorq.com Ewards 2009

he Car Dealer Ewards are back – and this year they’re bigger and better than ever. In 2008 we launched our search for the best automotive websites – and now we’re doing it all again. We know as well as you do just how important the internet is to car dealers. Our survey of buyer trends, in association with HPI, in Issue 12 revealed that some 88 per cent of purchasers looked to the web as their first port of call for a new vehicle. Whatever way you look at it, that’s a figure you really can’t ignore. But with so many web design agencies out there, how do you actually know what makes a good

one? And that’s the main reason we launched the Car Dealer Ewards – to help show you the best sites online, explain why they’re so great and help you produce a website that not only looks superb, but makes you money too. That is, after all, why we’re in this game! This year, we’re looking for Eward winners in five categories. They are: 1 Franchised Dealer 2 Independent Dealer 3 Car Supermarket 4 Car Manufacturer (automatic entry) 5 Web Innovation

Entering is simple and takes just a few minutes (see panel below right). After the closing date we’ll produce a shortlist of 10 car dealer websites in each category which will be sent to each judge for analysing and voting. Then, like Eurovision, the judges will put the websites in order of their favourite with the first winning 10 points, second nine points and so on. Only once we’ve received all the votes back will the winners be revealed. The only Ewards that differ from that procedure are the Web Innovation category and the Car Manufacturer gongs where all carmakers are entered automatically. In the Innovation category, it will be up to the individual judges to come up

Meet the judges... Richard Lawton

James Tew

Tim Smith

Daniel Burgess

Clive Jackson

Really Good Domains Marketing manager

Codeweavers MD

G-Forces Marketing director

HPI Automotive director

Autotorq founder

0161 482 7650 reallygooddomains.com

0870 443 0888 codeweavers.net

0845 055 9040 gforces.co.uk

0845 300 7543, hpi.co.uk

020 7384 8510 autotorq.com

‘I’ll be looking for websites that actually do more than just look pretty. Websites need to capture enquiries and generate business. So, while eye-catching design is important, we will pay special attention to how intuitive and easy to use the website is from a user’s perspective. Clear navigation is key, but the best websites are those where users enjoy their visit so those offering that little bit extra will score highly with us.’

‘I’m looking for innovation. I’m sure every entrant will believe their site is pleasing on the eye and has good navigation, but the real question is what does it do? Will it keep the user informed with quality content, video and vehicle info? Does it allow them to interact by personalising their vehicle using tools for finance and insurance? Are there calls to action and are they effective? If the answer’s yes, it’ll get my vote!’

‘Innovation, execution and results are what I will be looking for. Innovation displays a forward-thinking attitude and a willingness to embrace new technology. Execution is about how well everything is put together; how well it works and how simple it is to use for the visitor. However, results are key to success and the winners will have to demonstrate a positive impact on their business from their website.’

‘I’ll be reviewing websites to see which offer a shop window to a range of products and services, from finance and insurance to service and warranty. But, as ever, how this is delivered will be key to influencing our decision. How you publish your stock is just as important as the cars you have on your forecourt, so look, feel, navigation and level of information available to buyers will be evaluated.’

‘I’ll be looking for websites that are not only well designed, but are providing a return on investment. I want to see evidence that the web is working for your business, that you’re measuring success and utilising this information in innovative ways that keep you one step ahead of the competition. Any business on the web today must blend presentation and brand values with actual performance.’

autotorq.com

06 | CarDealerMag.co.uk

in association with autotorq.com with their nomination for this Eward and each will be debated when the panel gets together. We’ll be looking for a website, web-based product or service to the motor trade that is truly innovative – if you think your site has what it takes, send the details in the normal way and we’ll make sure all the judges see it. Our judging panel is made up of the great and the good in car dealer web design. Firstly, there’s headline sponsors Autotorq.com, the sister company of Global Beach. Founder and CEO Clive Jackson will be pouring over the entries to offer his expert opinion and in the run up to the main event will be writing an exclusive column for us. Other newcomers to the panel include Black Horse Motor Finance managing director Chris Sutton; British Car Auction’s group marketing manager Keith Rountree; Visit Cars’ Shaun Armstrong; and Motoring.co.uk’s sales director Chris Green. These experts join our established panel of automotive web masters – and Car Dealer columnists – that’s made up of G-Forces marketing director Tim Smith; HPI automotive director Daniel Burgess; Codeweavers managing director James Tew; and Really Good Domains’ marketing manager Richard Lawton. All bring with them a unique take on what they think car dealer websites should excel at – and for an idea if yours fits the bill, check out what they’ll be hunting for below. Last year, Ewards were handed out to some truly stunning sites. The Franchised Dealer Website of the Year Eward went to Lifestyle Europe; the Independent Dealer Website of the Year went to car supermarket Motorpoint; Jaguar picked up the Car Manufacturer title and the Special Achievement Eward went to Fiat. If you’d like to pick up the bragging rights for 2009, make sure you get you entry in to us as soon as possible. Over the next few issues we’ll be highlighting some of those dealers that have already entered and pointing out what they’ve done right – so the sooner you get your entry in, the better chance you have of being featured. >

Blog

Google

Common sense SEO

Marketing

Jackson

Web 2.0

Straight Talk

hen I was asked to share my industry insights in a regular column, I thought “why not, I’ve been doing this longer than most”. Having launched online a total of 12 cars from the Porsche Boxster in 1996 to Jaguar’s XF in 2008, four motorsport teams (two in F1), Sony’s Gran Turismo 5, Ann Summers’ best-selling electronic consumer product (!) and the myTelegraph website, I can honestly say that the common thread is always how to use digital to acquire, convert and retain customers and reduce marketing spend. I’m not going to bang on about autotorq.com even though they’re getting great customer feedback following two years of major investment. Instead, I will demystify what digital is all about and how dealers can improve the way they use the internet to drive more sales. Today, simply having a great-looking website is not enough. It’s what you do with it that counts: so focus on results. I know that many dealers have less than two leads a week from their website and take days to respond to customer enquiries; I also know that some dealers have 50 to 100 leads a month and are selling more cars as a direct result of their digital activity. Over the coming months, I’ll cover the four principles

‘Simply having a greatlooking website is not enough. It’s what you do with it that counts.’ of digital marketing that I know will make a difference to your online business. There will be no jargon, just straight talk and I’ll continue the discussion in my blog (http://blog.autotorq.com) and on twitter (twitter. com/autotorq) so you can join in and have your say. Whatever happens, I hope to help you better understand what your digital supplier is doing – from social media, to search marketing, website design and CRM, I’ll keep it informative and entertaining. So, let me leave you with one thought. If traditional marketing is about placing an ad and hoping to catch the right person (right time, right place and subject to chance – poor odds), Web 2.0 marketing is about taking the message directly to those that have held up their hand, and by knowing in advance what they’re interested in, you can target your message (better odds).

Who is Clive Jackson? Clive is the founder and CEO of autotorq.com and Global Beach digital agency. Visit autotorq.com or globalbeach.com to find out more.

How to enter

Shaun Armstrong

Chris Green

Chris Sutton

Keith Rowntree

Visit Cars MD

Motoring.co.uk Sales director

Black Horse Motor Finance, MD

BCA, Group marketing manager

08717 502 495 visitcars.co.uk

0161 638 9804, motoring.co.uk

0131 311 2127, blackhorse.co.uk

0845 600 6644, bca-europe.com

‘I’ll be looking closely at the customer journey, design and usability of the website. Capture points that call the visitor to action and good search engine optimisation for lead generation will be key as well as regional and localised targeting. I’ll be measuring speed of response, openness on pricing and financial info as well as the ability to deal nationwide. And finally I’ll be looking for a unique selling point in the winners.’

‘I want to see businesses that have embraced the internet and will be insisting on a user journey that is top notch. I’ll be looking to see whether a consumer will be able to find the info they’ll be looking for easily and will be analysing their search engine rankings for their own key words. I want to see ‘click throughs’ landing on the right page, ideas that breed brand loyalty and the sort of vision that stands you out from rivals.’

‘We’ve all come across websites which miss a trick and suffer from being out of date, difficult to navigate or just plain ugly. The Ewards are all about celebrating the very best current examples so I’ll be looking for websites which have excellent functionality, search engines and engaging designs which ideally demonstrate innovation. The winning websites should serve as effective tools to drive their owner’s bottom line.’

‘There are two key things I’ll be looking for in this year’s Eward winners: integration and return on investment. Internet propositions and e-marketing need to be integrated with CRM and offline activity. Integration is vital because the followthrough to transaction may often be offline. Investment in internet activity needs to provide strong ROI and be seen to generate real value back into the business.’

Submitting your website couldn’t be easier. Send an email to ewards@ cardealermag.co.uk and in the subject box type the Eward category name you’re entering. So, if you’re a franchised dealer, write ‘franchised’. In the email, include the following details: 1 Your name and position 2 Company name 3 Website address 4 Name of the agency who designed the website, or if in-house, state this 5 Finally, 50 words saying what makes your site an Eward winner If you entered last year, that doesn’t mean you can’t enter these Ewards, but you will need to send us details again.

CarDealerMag.co.uk | 07

Car Dealer Ewards 09 CarDealer

CarDealer.

SEO-ing the seeds of success? Why search optimisation is the key to getting it right

I N A S S O C I AT I O N W I T H

autotorq.com Ewards 2009

Ewards 2009: even tougher?

aving a brilliant website is more important than ever in the recession, say this year’s judges of the Car Dealer Ewards. When times are tough and deals thin on the ground, dealers need to be doing all they can to ensure they capitalise on any interest at all – and the web is the best place to do it. ‘Dealerships must be able to deliver a connected customer experience as a simple failure to respond will result in a lost customer,’ explained autotorq. com’s Clive Jackson – headline sponsor of the Car Dealer Ewards 2009. ‘Consumers now have a huge choice on offer and will vote with their clicks.’ His comments on the importance of trapping consumers online were echoed by other Eward judges too. ‘With the internet now most people’s first point of reference when they are looking to purchase a vehicle, it’s never been more important for dealers to have websites which help them sell,’ added judge Chris Sutton, Black Horse Motor Finance’s managing director. And Daniel Burgess, automotive director of HPI, continued: ‘Since the launch of Car Dealer’s Ewards last year, the industry has taken a knocking. As such a greater emphasis on providing a full portfolio of services that add value for the buyer, but bring in revenue over and above the car sale, have been a driving business factor.’ Our Ewards will be handed out to the best websites in the following categories: Franchised, Independent, Car Supermarket, Car Manufacturer and a website that has shown true Web Innovation. ‘The motor industry experienced extremely challenging times in 2008 and recovery is far from complete in 2009,’ said new judge Keith Rountree, BCA’s group marketing manager. ‘Budgets across the industry have been under real pressure with everyone looking for value for money. As such, investment needs to provide strong ROI and be seen to generate real value back into the business.’ Find out who won what last year and get more pointers in the special section on our website CarDealerMag.co.uk

Fiat’s Andrew Humberstone won last year

08 | CarDealerMag.co.uk

Your site here?

ar dealers can’t fail to have spotted footfall in showrooms is less than it was. There’s a simple reason for this: nine out of 10 car buyers are doing their research online first. This, says Visitcars MD Shaun Armstrong, is why it’s so important to consider how people actually find you online. The official name for this is ‘search engine optimisation’ – SEO. It’s previously not something car dealers have had to consider, says the new Car Dealer Ewards judge. But if they’re not doing it now, they’re missing out big time. ‘First of all, car dealers have to think how they want to be found,’ says Armstrong. ‘Do they want a nationwide presence, or do they want to focus on their local area? This has a big effect on the keywords they use.’ If, say, you’re a used car dealer in Slough, and want locals to find you, ensuring you use keywords such as ‘used car Slough’ is a very basic start. It’s easy to decide on the right keywords – simply think what your customers will type into Google, and make sure you match them! To go further, consider specific landing pages for ‘used Citroens Slough’, and pack these pages with make and model-specific keywords. Don’t go overboard, though. Google knows if you’re trying to trick it, and will penalise you. You don’t have to dig much deeper to find more SEO wins, says Armstrong. ‘The most important on-site element is your site structure. Search engines such as Google’s spiders look through your entire site to find relevant data, and rank it accordingly,’ he says. ‘You therefore need a good strategy on tagging files, the use of metatags and so on. Don’t forget content, either. It’s vital this is good

quality, and regularly updated. Google rewards active, frequently-changing sites – and if the content is newsworthy, then even better.’ Armstrong says combining a social group side is worthwhile. ‘You can link to Facebook and Twitter; it’s easy to set up pages in both, which encourages you and customers to become more actively involved. ‘You can further develop this through relationships with other traders. Promote events, comment on forums, add views to news items – anything to get your site out there.’ All this helps improve another key aspect of SEO – accumulation of backward links. This is where other sites carry a link to you. To Google, this marks you as a ‘knowledge’ site. It will rank you more highly, as you’re more important. ‘Getting the right content on there can encourage and improve this.’ Of course, more customers is a potential burden – of 100 web customers, you’ll do business with five or six. This is where clever automated pre-vetting services come into play. Visitcars, for example, allows prequalification of financial quotes, so customers know if they can afford a car from you beforehand. ‘It’s important you know how to manage the people you’re attracting, too,’ adds Armstrong. ‘Google is not looking at just your site, it’s assessing individual pages. It’s therefore important every aspect is well-honed. This requires time and continuous effort.’ Some dealers, he admits, may see this as a burden. To them, Armstrong quotes again his nine-in-10 stat. ‘Look at the hard numbers – and, if you’re not convinced of the commercial effort for internal resourcing, set KPIs for external resources, to ensure a good return.’ [CD]

Making the best better...

usiness has been booming for online specialists UK Websites – but it’s not just new customers driving demand. Existing customers, looking to improve the search engine optimisation of their site, are also adding to the growing workload of the UK Websites team. This is significant; it proves that all car dealers are fully waking up to the importance of perfecting their SEO ranking. ‘Try Googling the phrase “prestige cars Surrey”,’ explains the firm’s Ayo Samuel, for an illustration of how effective this can be. ‘More than half of the websites appearing in the natural listings on the first page are websites

built by UK Websites. As they say, the proof is in the pudding…’ What’s more, says Samuel, customers are also integrating more functionality into their websites, by utilising ‘Web 2.0’ technology. ‘Car dealers are adding facilities such as service schedulers, MOT booking forms and Codeweavers’ online finance calculators,’ added Samuel. ‘UK Websites are one the few website companies in the UK who are able to integrate the Codeweavers’ online finance facilities.’ These allow customers to get online quotes for finance and insurance – tailored to the specific vehicle they’re interested in. To find out more visit ukwebsites.net

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Fiat chief’s tough regime results in more dealer profits Andrew Humberstone tells Car Dealer more than 30 dealers have lost franchise

Scrap may be working, but there’s more you can do

Keep up-to-date with the latest dealer news at CarDealerMag.co.uk Humberstone has been getting tough now serves as a strategic dealer assistance division. Humberstone explained to Car Dealer Magazine last year that he was going to be tough with the UK dealer network. It seems he’s been true to his word – with the results for those remaining being welcome extra revenues in tough times. And he hasn’t finished yet, either… Renault chief exclusive, p18 & p31

Dealer teaches women self-defence moves PEUGEOT car dealer Merritts of Amersham ran a successful selfdefence evening for customers recently. The aim of the packed event was to help women drivers protect themselves against road rage attacks. Nearly 100 women attended the ‘Women In Gear ‘evening, revealed Merritts – and quite a few men too! The evening taught guests how to fix simple mechanical problems and also some mustknow self-protection techniques. This would help them protect themselves in the event of an attack and also arm them with the skills to ensure they weren’t stranded in the first place.

Burgess Just checking

FIAT’S extensive overhaul of its UK car dealer network has helped retailers make more money from sales. In 2008 the company’s average return on sales was 0.9 per cent. But, so far this year, this has shot up to 1.4 per cent – and there’s more to come, according to Fiat UK boss Andrew Humberstone. He says it’s all part of a far-reaching overhaul plan for the UK network that he set in place last year. This has seen 31 dealers lose the Fiat franchise – but 28 new retailers have joined, meaning the current UK tally is 157. What’s more, says Humberstone, there are 12 appointments pending.

‘I have three focuses for improving Fiat in the UK: network, brand and retained values,’ said Humberstone. He also explained his desire was for a ‘clean business model’, with no unprofitable below contribution margin sales. This has led naturally to a switch towards more profitable retail sales – which is having the happy added result of improving retained values. The tough Fiat boss has also instigated changes for Fiat’s UK dealer council; it

dashboard

Karate whiz Grant Hicks did all the physical stuff, while ex-Police chief inspector Vic Botterill spoke about dealing with aggressive drivers. Nurse Cheryl Harris, who attended, said: ‘I had never changed a wheel before I came here. Now, I know I can do it if my car breaks down when I’m on my own. ‘It’s good that courses like these equip women to take control and be better able to cope with today’s road conditions.’

espite early scepticism, many dealers are capitalising on the government-backed scrappage scheme and results so far are encouraging. The indications are that the government fund will not last until the end of February 2010 and may even run out in the fourth quarter of this year. This is adding some urgency to the scheme – the message is clear, don’t hang around. It’s working for many dealers out there, so if you’re not making the most of it already, get your skates on. So where does this leave the used car dealer? In the current climate, dealers ‘Tools such as need to make the most of what they have, which lead generation means that old saying ‘maximise your opportunities’ and database has a great deal of cleansing can resonance today. help by making The good news is that many dealers are heeding sure you don’t this advice by capitalising waste your on the demand for good used cars. However, this time.’ demand isn’t going to last forever and with the most popular models thin on the ground, especially younger used cars, they need to explore other ways of bringing customers back to the forecourt. There are plenty of other tools at the dealer’s disposal that can help both save money and generate sales. The current lack of finance available in the used car market means it is imperative you get the right people in your showroom. Tools such as lead generation and database cleansing can help by making sure you don’t waste time and resources contacting the wrong people. It’s also worth mentioning the importance of maintaining customer service after the sale is agreed with things like seven day insurance services such as Driveaway Insurance. With the seven-day insurance services you can get the vehicle taxed, delivered and the money in your bank. Aviva’s Driveaway programme is completely free to dealers. Some economists are suggesting we have seen the ‘green shoots’ of recovery. However it is still a buyer’s market. In these extraordinary circumstances fresh thinking and new approaches are needed. Now is the time dealers should use the tools at their disposal to drive business forward. Scrap Scheme Focus, p40

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

CarDealerMag.co.uk | 11

New from HPI

Competitive car ﬁnance for your customers

Our dealers asked for:

✓ Competitive rates for both customers and dealers

✓ No debit backs ✓ Commission earned by

a fresh appro ach to car ﬁn ance

dealers is kept by dealers

✓ Quick decisions ✓ High acceptance rates ✓ Customer offers.

from

HPI Finance Gateway delivers all this and more.

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dashboard

Aston Martin’s mini based on a Toyota! It’s no joke – we think – as Aston unveils baby car ASTON Martin has stunned the motoring world by revealing a tiny Toyotabased new car concept. The British company has taken the micro Toyota iQ, and re-engineered it as an Aston Martin. What’s more, the Cygnet project is likely to become a reality! This image is not lying – this really is a Toyota iQ that has been given an Aston The Aston Martin concept Cygnet’s based on Toyota iQ Martin makeover. The Ulrich Bez. ‘Much work is still required, famous grille is present, but I am confident that this project could along with other DB-inspired detailing. become reality in the not too distant Aston Martin says the interior will be future. This concept – akin to an exclusive completely stripped and decked out in tender to a luxury yacht – will allow us to exclusive trims and hides to the customer’s apply Aston Martin design language, specification. It can even be made to match craftsmanship and brand values to a the DBS or V8 Vantage customers are completely new segment of the market.’ probably also buying. As Aston also points out, the iQ has highly The Cygnet has come about because studies show a huge number of Aston What do you think of the Cygnet? Text Martin owners also have a top-spec MINI; DEALER then your comments to 82085 this then is their city centre short-hop Texts cost your normal rate runabout instead. marketable benefits such as decent fuel With the Toyota-based Cygnet, Aston will economy, CO2 emissions of 99g/km, plus a be offering a bespoke alternative, for a five-star Euro NCAP safety rating. similar £20k price tag. Don’t be surprised if, in a few months, a ‘Now is the right time for Aston Martin to concept car looking very similar to this take this first bold step to embark on this appears. We’re still not convinced though! special project,’ said company chief exec Dr

Renault man clocks up his 3,000th sale RENAULT Solihull salesman Steve Betts has set an amazing record – handing over his 3,000th Renault. That’s an eye-watering average of 250 new and used cars per year and means Betts, pictured, has single-handedly swelled the ranks of Renault in the UK in a career that’s spanned a decade. It’s also earned him membership of Renault’s exclusive Diamond Club, the maker’s scheme that honours high-achievers for volumes and customer satisfaction. Renault Solihull general manager Simon White said: ‘With such a wealth of experience, Steve is a valued member of the team, and everyone here is proud of his achievement – both in sales and for becoming a member of the Diamond Club.’ Betts’ 3,000th motor was a new-shape Clio, sold to John Hobson. He’s another

Renault Solihull stalwart, too – this is his fifth… Betts is not the only Renault man doing great things, though – corporate account manager Richard Turk is taking on the challenge of a lifetime by climbing Mt Kilimanjaro! The Renault Newcastle man aims to complete the climb in 10 days, raising £2,000 for the National Victims Association. ‘It’s the first of the Seven Summits and I aim to have a crack at them all,’ added Turk.

Tew Net gains Why finding a specialist web design firm is absolutely key

ould you go to the butchers and ask for a hammer and nails? Probably not. So why are car dealers making the mistake of going to general web design companies, instead of those with auto specialism? It’s a question I’ve been pondering. See, I get a lot of people approaching me, asking us to integrate our various services into their websites. And, in a worrying number of cases, it’s a nightmare. Plumbing in functionality is a total headache – why? Because the original web designers have not considered the requirements the auto industry has. It’s thus crucial that, when appointing a website builder, car dealers should look to what they actually want their site to do. ‘Don’t bother Rather than looking for the cheapest, the most local, or yourself with the simply the best their mate how, just down the pub can do. ask your web After all, your website is an extension of your guys if they can. showroom. It’s an You know what increasingly vital shop window to your business. you want, but Why would you give do they? someone the keys to this, if they don’t have any specialist expertise in the auto field? It is a unique sector with its own must-knows. I’ve had people who don’t even know what a Glass’s or CAP code is: this is the basis of a car site’s back end, and they just don’t know how to handle it! They can’t deal with finance systems, haven’t the first idea about pairing with your CRM because they don’t know cars. Result? A poor user experience, an inability for people to find what they’re looking for, a lack of search engine optimisation functionality, incompatibility with the major auto industry standards – and, yes, major headaches for the guys here at Codeweavers. Yes, you have a site. Sure, it looks pretty. But does it actually do anything? If not, you’re not getting value for money – no matter how cheap it is. That’s why I’d thoroughly recommend you have a checklist, of all the basics any potential web developer must meet. This should include whether they have any auto experience, who their current clients are, whether they know how to work with data providers. Believe me, take care here and it’ll pay dividends in the long run. Don’t bother yourself with the how, just ask your web guys if they can. You know what you want, but do they?

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.

CarDealerMag.co.uk | 13

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Hyundai’s boat comes in

Firm’s big shipment of i10s arrives – and they’re all sold

Henstock Auction stations Are they really green shoots we’re starting to see?

hen it comes to assessing how ‘green’ the shoots of recovery are , you are likely to get a different answer from everyone you ask. As most observers are now acutely aware, demand for used vehicles – both cars and commercials – in 2009 has been substantially better than 2008. Wholesale values have more or less recovered completely and the demand shows no sign of abating – at least in the short term. However, new car demand remains very fragile and even with the scrappage scheme in place there is little yet to suggest any swift recovery in a market that has fallen for 13 consecutive months and by an average of more than 27 per cent this year alone. Latest figures from the SMMT show a rolling annual figure of 1.842m registra‘For the vast tions, down by more than majority of 555,000 units. In addition, the economic buyers it picture is not that much seems used improved, particularly when looking at the broader cars are a canvas. Interest rates must-have, not remain historically low, but unemployment continues a nice-to-have.’ to climb, with 2.2m seeking work and figures rising at the fastest rate since the 1980s. House repossessions are up 50 per cent in a year, and the Bank of England says the UK economic recovery is likely to be ‘slow and protracted’. Inflation remains stubbornly above the two per cent government target, and credit remains difficult to get for many people. In among all this economic upheaval the used car market – after a difficult 2008 – appears to be the one business sector that is the exception rather than the rule. There must be some interesting dynamics at play. Why have used cars (and vans for that matter) outperformed so many other areas of wholesale and retail? Most commentators agree it was the low prices at the back-end of 2008 that stimulated the rush of interest that manifested itself in January and February. Demand that was stimulated by low prices has remained even when prices have risen. For those with a little money behind them, there has obviously been the temptation to spend on a replacement used car, rather than let it sit in a building society gathering an historically low rate of interest. So, for the vast majority of motorists, used cars are a ‘must have’, not a ‘nice to have’. This – perhaps more than anything – underlines why there is strength in depth and resilience in the sector.

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.

14 | CarDealerMag.co.uk

THIS is Hyundai’s latest boat of motors arriving from Korea – and every single one is already sold! The delivery of 1,108 i10s is testament to the firm’s success under the scrap scheme. Hyundai has been one of the makers at the forefront of the initiative, determined to make the opportunity work in the best possible way. One York car dealer has posted huge gains thanks to the scheme – Hatfields tripled its new car sales in May! ‘It is unquestionably down to the new programme, rather than being a general rise in demand,’ said dealer principal Andy Maddock. ‘Hyundai deserves credit for getting their pricing and promotions in the public domain ahead of the competition.’ It’s not just the budget cars that have been doing well, either. ‘The i range has been in high demand,’ said Maddock.

‘Particularly the (Ford Focus-rivalling) i30, which offers the biggest saving against the new retail price.’ Maddock says a lot of the customers he’s seeing are new to the dealership – and many admit they previously thought a new car was out of reach. ‘A large proportion of incoming scrappage part-exchanges seem to be cars which have been used regularly, but which owners have been reluctant to change,’ he added. ‘The transparency of the scheme has been a good enough reason for these people to finally take the plunge.’ And it’s not just Hatfields Hyundai outlet that’s winning: The Volvo division in Bury has also seen a sales boost of 20 per cent. Chiefs on scrap, p18; Scrap in-depth, p40

SsangYong man’s miracle recovery after back break SSANGYONG UK employee Adrian Ryan has walked again – just days after breaking his back. A horror cycling accident saw Ryan land on his head and he discovered he couldn’t move his legs. And to make matter worse he was left undiscovered for more than an hour – Ryan could only shout for help until a passer-by discovered him and he was airlifted to hospital. The worst was revealed during an eight-hour operation; he had five broken vertebrae – and one of them

had split into three and was pressing on his spinal cord. Instant fear flashed up that he’d be in a wheelchair for the rest of his life, he told the Nottingham Evening Post. But incredibly, just two weeks later he was taking his first steps again! And it’s all thanks to him being ‘exceptionally fortunate’. Ryan’s recovery is now continuing, with the best wishes and support of all at Koelliker UK. ‘I feel really lucky,’ he added.

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RELAUNCH

Dealershelprevamp New Car Leads site Now you can buy the sales enquiries you can make the most of

Rapp Marketing Search engine optimisation is the key to more car sales

EO, or search engine optimisation, to give it the full moniker, is one of those buzz-terms you’ll often hear when the web-savvy gather to talk. It’s all about the gentle art of ensuring search engines – like Google – ‘see’ your web pages and give them the highest ranking they deserve. To do this, you must pay attention to what you say on your pages, the titles you give them and the web addresses (or URLs) too. I needn’t say much about the importance of getting a good ranking. I think for most of us now, a good showing in Google is a ‘given’. Briefly, though, it goes like this. Let’s say that you’re a dealer specialising in secondhand BMWs. If you type ‘second-hand BMWs’ into your search engine of choice and your site is ranked top, you’ve hit the jackpot. Web traffic will pour your way and there’s nothing more you need know about SEO. But, of course, life is rarely that sweet. If you search in vain and eventually find your site listed 10 pages down, you’ve got work to do. There is a choice: you can either do the work yourself – or let Motors.co.uk give you expert help via its Website Plus package (to find out more, call Alastair Farrow on 0845 265 5515). If you choose the DIY approach, here are a few must-dos: Use search engine-friendly URLs: Place your key words as close to the beginning of the URL as you can. If you have a page displaying Ford cars, create a URL like this: www.jonesmotors.co.uk/ford-cars. HTML page titles: Make sure pages have unique html page titles, which include one or more of your key words. Description and key words meta tag: A meta tag is something you use to describe your site in such a way that search engines will notice it. To succeed, the tags should be all about your business. If you sell plenty of Vauxhalls, make sure that the word is in there. Keyword density: What’s written on your site should include plenty of mentions of what your business is all about. Again, if you specialise in a particular make, then it should appear prominently on the page. But don’t overdo it. You should also ensure it is written specially for your site. If you cut and paste from elsewhere, there’s every chance that Google will notice what you’ve done. And if it does, it will downgrade your ranking because your site hasn’t got original content. Have a sales-busy month!

‘If you search in vain for your site and find it 10 pages down Google then you’ve got work to do.’

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

16 | CarDealerMag.co.uk

BUYYOURCAR.CO.UK has taken on dealer feedback to relaunch its popular New Car Leads service. Key to the revamped offering is a unique ‘real time’ function that lets dealers purchase sales enquiries ‘live’. How does it work? Well, traders access a ‘breaking news’ style new car lead ticker which displays sales enquiries as they arrive. Dealers then pluck out the individual ones that interest them. What’s more, traders can even set up auto-purchase functions that buy leads on a pre-set list of criteria, such as location and price. These leads are emailed direct to the car dealer as they arrive – or, through integration with DMS systems, to any central server you desire. BuyYourCar.co.uk boss David Long said it’s all come about through wanting to offer a flexible, cover-all solution for dealers of any size. ‘Those interested in a single manufacturer within a specific geographical region can select the leads they want to purchase, and there’s no obligation for them to buy more than they need,’ said Long. ‘Larger dealerships and dealer groups with a nationwide coverage are also catered for by the system, allowing them to see leads across the UK for the makes

Dealers helped revamp NewCarLeads.co.uk website and models of interest.’ But, he said, we shouldn’t just take his word for it. ‘We’re not interested in a system that forces us to take a whole batch of leads, regardless of age, make and model, location, and so on,’ said one dealer user. ‘The beauty of the NewCarLeads.co.uk system is that we dictate what we buy and what our spend is going to be for any week or month. The system is flexible, so that we don’t have to be!’ Long is also planning further growth for the site. The company is talking to car industry big players, to provide additional leads through their sites. ‘These will be fed into the NewCarLeads. co.uk system, providing the dealers using the system with an even wider range of leads to choose from,’ he said. To find out more you can log on to NewCarLeads.co.uk.

Tesla opens in London

No chance to retire for many

TESLA has opened its flagship European showroom – and it’s in the centre of London. The premium 5,000 sq ft car dealer is within walking distance of Harrods. ‘We expect the London store to dramatically increase our brand identity throughout the continent,’ said Tesla CEO Elon Musk.

LESS than a quarter of car dealer top bosses are paying into a company pension scheme – meaning the vast majority will not be able to retire any time soon. It’s the same for their employees too, revealed Clifton Asset Management, as less than a third are operating a company scheme. Even where there is one, barely 25 per cent make regular contributions. It all means many car dealer staff will have to continue working, as retirement will not be an economic proposition. Clifton has been monitoring retirement attitudes for a year now and found it’s owners in the West Midlands who are the most pessimistic about their prospects. Clifton director Anthony Carty said: ‘Retirement is becoming ever more elusive for the vast majority of SME owners – and out of the question altogether for a large minority.’

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dashboard Marshall adds Kia to its growing portfolio

MARSHALL Motor Group has announced a new deal to represent fastgrowing value brand Kia. The company’s first Kia franchise opened in Ipswich on July 1. Ransomes Europark already runs Vauxhall and Chevrolet franchises. Chief executive Daksh Gupta, pictured, said Marshall was delighted with the appointment: ‘We have been impressed by the speed with which this franchise has been established and growing over the last few years.’

Ford price rises blamed on pound

PRICE increases across the entire Ford UK line-up of new cars are being blamed on the weak pound. The hefty price hikes average four per cent and apply to all new orders from the end of June. The increase equates to £600 on a Fiesta, £700 on an S-Max and £800 on a Galaxy.

Govt wants makers to tune into DAB

SCRAPPAGE ROUND-UP

‘Scrap is govt’s OK to buy new’ Chevrolet boss tells Richard Aucock scrap has come at right time CHEVROLET UK chief Mark Terry says scrappage has come at just the right time for the growing value-focused brand. ‘The value was there before from us,’ he told Car Dealer. ‘But what the government scheme has done is given added impetus to things. ‘Suddenly, customers who were unsure now have the government’s okay on new car purchases. Add in the “once it’s gone, it’s gone” element, and there’s the green light to make car purchases again.’ This, says Terry, has given Chevrolet a welcome fighting chance in a tough marketplace – and initial results are startling. ‘The biggest surprise for us has not been the mix – it’s the volume! Scrappage orders are well in excess of forecasts; May was up 40 per cent on 2008, and we’re having to positively strengthen our forecast going forward.’ This has led Terry to revise his overall sales aspirations for 2009. ‘My ambition was for 17,200 sales (Chevrolet did 18,300 in 2008). Now, my personal goal is to hold volume in a declining market – which will give us very strong market share gains,’ he said. ‘There has been some shift in regular retail to scrappage, but

Chevrolet chief Mark Terry incremental remains the biggest gain. We now have real momentum in the UK market.’ He was upfront in admitting toplevel profitability on sales has been cut. ‘It is a challenge for profitability,’ he said. ‘We had to review our dealer margin position – but retailers have been supportive. They contribute anyway, to sales initiatives, through various different means. This was a matter of us sitting down and More scrap stories online at CarDealerMag.co.uk working it all out. So, yes, there’s pressure per unit, but in terms of incremental, it’s very good.’ All of which means the Chevrolet dealer franchise now has real momentum. ‘Dealers are finding the Chevrolet brand is now a key part of their business,’ he added. ‘Those in multi-franchise outlets, where the stronghold used to be with Vauxhall, are now seeing Chevrolet becoming very significant. They are responding by allocating resources accordingly.’ Scrap success in-depth, p40

Scrappage‘good news for entire industry’ DIGITAL Britain has recommended all new cars are fitted with DAB radios by 2013. The SMMT has welcomed the report from the quango – but feels the timing is ambitious. There are 32m cars on UK roads and only a tiny number currently have DAB. Stay up to date every day at CarDealerMag.co.uk

18 | CarDealerMag.co.uk

SCRAPPAGE is not only helping new car dealers, but providing a boost to the entire car industry. At least, that’s the view of Glass’s expert Adrian Rushmore, who has said the filter-down effects are proving to be pronounced. ‘The highly publicised scrappage scheme is having a halo effect that benefits much of the used car market,’ he said. The vast majority of car buyers entering the market will continue to be trading up from a car that is under 10 years old, and therefore not eligible for the £2,000 scrap bonus. This means that used car prices will be unaffected.’

Good news throughout, then? Pretty much. His only concern surrounds small car availability. These were already in short supply before scrappage came along. ‘It is possible that certain models simply won’t be available within the scheme’s stipulated 16-week timeframe for delivery,’ he revealed. ‘This situation will be aggravated if manufacturers limit supply to the UK because of the low value of sterling against the Euro, recognising that it may be more profitable for them to support scrappage schemes elsewhere in Europe.’

Renault chief hits out at scrappage support RENAULT UK’s managing director has hit out at the government over the scrappage scheme. Speaking exclusively to Car Dealer Magazine, Roland Bouchara said he would have liked to have seen a far larger contribution than the current £1,000, which car makers must match. ‘I do think it was the right thing to do,’ he told us. ‘But I believe that the financial support given by the government is not high enough. ‘With the government handing over £1,000 and the manufacturers being asked to contribute £1,000, it is tough. ‘Yes, it’s better than nothing, but we have to recognise the level of support is not at the same level as Germany, France or Italy. ‘We currently have the situation where even the Japanese

Clio sales boosted by scrappage manufacturers are making a loss, so asking the makers to contribute 50 per cent to the scrappage scheme contribution is very difficult.’ But the UK chief still believes the government initiative was the right thing to do. ‘The scrappage scheme was needed to help the market because we had to be pulled in the right direction,’ he explained. ‘It is also strange the government didn’t link it to eco cars, but you only have to look at the sales under the scheme to see that 85 per cent of those sold via it are small – and these, by their very nature, are low emissions. ‘Dealers are taking the orders we expected under the scheme and we are very happy with the way Clio has been boosted.’ Bouchara full interview, p31

When it comes to the crunch, motors.co.uk drives sales!

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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

You take the wheel ™

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EXCELLENT W

e’re all for recycling, right? In today’s world it’s increasingly important. And if you’re a smaller marque in the vast Volkswagen empire looking to enter a new market segment, it can also prove rather handy. You see, while SEAT has a reputation for building decent, fun to drive, compact cars, it’s not exactly renown for its larger vehicles. In fact, it’s never made a Mondeo-challenging D segment motor. Until now. This is the Exeo. That creeping sense of déjà vu you’re getting? Well, there’s a very good reason for that. The Exeo is built by SEAT, engineered by SEAT and re-styled by SEAT. But it is – no points for guessing – quite clearly a revised version of the previous generation Audi A4. Think about that for a moment, and you’ll quickly realise there isn’t much of a downside. In fact, this is a small stroke of genius. Reduced development costs, reduced tooling costs and a well-established platform should make for great reliability and excellent value for the buyer. Not to mention the prospect of last generation Audi quality at knocked down prices. Not that knocked down, though. The Exeo range currently starts at a Mondeo and Insignia matching £17,740. But funnily enough, there’s a pretty good reason for that, too – the Exeo is not only stuffed to the gills with standard equipment, it’s also using the very latest Volkswagen Group 2.0-litre turbodiesel engines, complete with common rail injection and stunning real world fuel economy. Available with 141bhp or 167bhp (a super-frugal 118bhp version is coming later in the year), these TDI powerplants are fantastic pieces of work – torquey yet keen to rev, they can get the Exeo to

20 | CarDealerMag.co.uk

Recycling is all the rage these days, but has SEAT gone a bit too far rebranding an Audi? No way, says CJ HUBBARD 62mph in as little as 8.4 seconds, and return as much as 51.4mpg combined. Feel the need to go faster and you can opt for a top spec 2.0-litre turbo petrol, but with diesels this good that’s practically niche. Compared to the Audi that underpins it, the

DEALERVIEW

DARREN WILLIAMS, BUSINESS MANAGER, GRANTS SEAT, BRAINTREE It is an exceptionally good car. The irony is that I headed business at an Audi retailer until last year, so know the car well. In this guise, it is the finished product. The problem for dealers will be that they don’t know what to do with it – this is such a good quality product, it needs a forthright approach in expressing its quality, dynamics and finish. For the money – £17.5k – there’s nothing like it; it’s unique. Potentially, it’s a goldmine, if marketed right. We used a campaign boasting of ‘German Engineering, Mediterranean Styling’ and have done very well as a result.

Exeo is striking not only for its updated styling and revised dash – donated by the A4 Cabriolet; apparently it was a surprise to the Germans that SEAT could get it to fit – but also its neat handling characteristics. The ride is supple if slightly fidgety in standard guise, while the petrol’s Sport set-up (also optional on the 167bhp diesel) tightens body control just enough to deliver greater cornering confidence yet avoid turning the whole thing too lumpy. The Exeo feels more relaxed and perhaps even a touch more sophisticated than the Audi original. Not exactly a challenge to the best in this sector, but the chassis exudes a sense of refined maturity perfectly suiting the car’s solid, attentively detailed interior. Bluetooth, dualzone climate, ESP and six airbags are standard; luxury options include double-glazed windows, sat nav and a solar sunroof. Defining phrase here? Value for money. What the Exeo lacks in cutting-edge modernity it makes up with all-round satisfaction. We reckon this SEAT should prove a seriously good car to own.

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

• The Independent

• Mail Online

• Desperate Seller

• Yahoo! Cars

• The Sun

• Teletext cars

• Carsource

• Cars By Mail

• Kelkoo

• ‘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, Desperateseller.co.uk, the ‘This Is’ sites, The Independent, Kelkoo, The Sun 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

forecourt

TT RS

AUDI

ome 100 years after it started, Audi is still making fine cars. There’s a reason why you see so many TTs on the road, after all. It’s a great motor. Car buyers can’t get enough of them and Audi dealers know there’ll always be a market. But as any brand expert professes, to continue this success, car ranges need to evolve. And thus, a few years after its launch, we have this: the Audi TT RS. A car that just so happens to be the closest recreation of the mighty Audi Quattro yet… We say this for one reason above all: its fivecylinder engine. Sourced from a US Jetta, the new motor produces an impressive 335bhp –

22 | CarDealerMag.co.uk

Some say it’s the spiritual successor to the Audi Quattro. We’re not so sure... but the new TT-RS is still a corking car

better than a Porsche Boxster S, and even BMW’s new turbocharged Z4 sDrive35i. You can’t argue against the performance. Throttle response is instantaneous and the torque prodigious, so that at any speed, in any gear, the TT RS powers past traffic. The zero to 60mph sprint time of 4.6 seconds is impressive. Audi dealers can even remove the 155mph limiter, giving a 174mph max. It sounds a bit like the original Quattro too,

with a sonorous five-cylinder burble that’s heightened when you press the Sport button. This opens a valve in the exhaust, making it even meatier. Shame the gearbox can’t hit such highs. Lacking DSG, even as an option, the six-speed manual is imprecise and tiresome. Suspension is 10mm lower and means the TT RS corners flat and very hard. Levels of grip seem unbreakable – while you will breach the limits if you turn off the ESP, often all that’s needed is an

Audi TT RS Price: Engine: Power: 0-60mph: Max: Ins:

extra tweak on the steering wheel. Shame it isn’t more driver-focused. The TT RS has the involvement of a computer game. A very good, latest generation, Xbox 360 game certainly, but one where ultimately you feel impressed rather than excited. Even the interior isn’t that exciting; flatbottomed RS steering wheel and Nappa leather sports seats apart, it’s hard to distinguish from lesser TTs. Mind you, fuel economy shows a rational side – it can average 30mpg, and emits just 214g/km of CO2. In contrast, the price is a bit irrational. Although Audi reckons on selling just 400 examples of the RS in a full year, it still

kicks off at an ambitious £43k for the coupe, and another £2k for the roadster. That’s a lot, even for a mighty halo car such as this. It will sell, of course. Lots of intelligent engineering and computer trickery make it impressively fast, while the enhanced styling and lower suspension means it has just enough kerbside appeal to stand out. However, it takes more than this to bring soul and excitement into a driving experience. So, is it a reincarnation of the original Quattro? No. But, a very capable and fast, albeit expensive car, that’s going to be much in demand. Sales Legends: Audi Quattro, p26

£42,980 2.5-litre five-cyl turbo 335bhp, 450Nm 4.6s 155mph 20

DEALERVIEW

CLIVE SUTTON, CLIVE SUTTON CARS I’m very excited by the Audi TT RS. It is a move upmarket that the high-image car can fully carry off. The company has been subtle with the styling changes, but it’s just enough to mark it out as something special. The performance is excellent, and I’d say it’s competing in a strong marketplace – I can see it appealing to ‘downtraders’, who are stepping out of a Porsche to save some cash, but still want something special.

CarDealerMag.co.uk | 23

cult cars

Maserati Quattroporte

ere at Car Dealer Magazine we’ve fallen in love with a lot of cars in our time. But one of the most amorous we’ve ever driven was the Maserati Quattroporte: The four-door saloon car from the Gods. Maserati, you see, employed angels to tune the engine, in the time-honoured Italian way. It then put it on the catwalk and told fashion designers to sort the paint and interior trim. Before using the angels as a contact for Alberto Ascari, to come down from above and sort out the handling. We are besotted, make no mistake. Two days in Italy a few years ago, behind the wheel of the Sport GT S, left us utterly beguiled. And what was it pressing all the right buttons? A four-door sports coupe, no less. Quattroporte means four-door. We know, the translation loses some of that mystique doesn’t it? But it’s a name from Maserati’s past; the brand produced a four-door model just like this in the 1960s. That was cool, too, but not as cool as this. Introduced in 2004, the Quattroporte was Maserati’s upscale rival to the Jaguar XJ. Long, lithe, sleek, and complete with massively long front wings sporting no less than three functional air exits, you really could imagine the rear doors almost as an afterthought. Under

Quattroporte

Price: £86,995 (09/09) Engine: 4.7-litre, V8 Power: 433bhp, 490Nm 0-60mph: 5.1s Max: 177mph Now finance one with Bridford: One: £36,995 deposit, 24 x £769 plus final payment* Two: £16,995 deposit, 48 x £1,209 plus final payment*

the bonnet was a 4.2-litre V8 engine, complete with dry sump taken straight from race track principles. This ensures better oil delivery during frenzied cornering. Which was a pointer to this car’s intended driver mindset. This engine, incidentally, is a shared design with Ferrari. It’s also seen amidships, in slightly larger form, in the Ferrari F430. And we all know how fantastic they are… Here, it doesn’t wail, but burbles. Elegantly, with dignity – and, at 7,000rpm-plus, pretty deliciously. The 0-60mph dash in 5.6 seconds isn’t record-breaking, but swift enough given how useable the engine is. We drove the full automatic version, as opposed to the original, jerky DuoSelect semi-auto. F1-style gearboxes are fine for Ferraris, but not here…

Another car that has besotted us recently is the Ford Focus RS. The first generation of which the same guy who sorted the Maserati’s handling also worked on. This, to drive, is so very different in character, but equally magnificent. The steering is pin-sharp perfect and as pure as a racer. Handling’s incisive too. The way it flows from corner to corner – well, it’s just delicious. Get it on a bumpy road, too, and while it’s taut, it soaks up all the roughness and remains composed like a true great. There’s mastery at work in the way the Quattroporte drives. An hour behind the wheel will have you pleading with the Gods to own one. Today, it’s even more magnificent. Maserati has fitted the 4.7-litre V8 engine – which, in Sport GT S guise, produces a wailing, but majestic, 433bhp. That’s if you want to go brand-new, though. If you’d prefer, say, a secondhand Sport GT S, now’s the time. They’re coming down in price all the while – and, courtesy of our friend Tim Marlow at Bridford, even a nearly-new one can cost an amorous £769 a month with a £37k deposit. Believe us, this is not a lot to get what will be the love of your life… and the perfect chariot for a successful dealer principal. RICHARD AUCOCK

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

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CarDealerMag.co.uk | 25

sales legends

Quattro Audi Back in the mainstream spotlight thanks to the Beeb, Richard Aucock explains why the Quattro never left real car lovers’ wish lists

re-Quattro, Audi didn’t really stand for much. It was a posh Volkswagen, little more, in the eyes of car buyers; it had the same sort of quirky standing as Saab. Case not helped by building models such as the Audi 50 – a badge-engineered first-generation VW Polo… This approach was never going to turn it into a BMW beater. And so, enter Dr Ferdinand Piech, mercurial head of all things VW nowadays, but back then in charge of Audi. He’s an engineering nut – always has been. And he pushed through an idea… four-wheel drive for cars. Now it makes so much sense; it could be used to improve handling, not just help big trucks go off-road, said his engineering boffins. Problem was, making it compact enough to fit an everyday coupe. A coupe such as, ooh, the Audi Coupe. That wasn’t to stop him. Development continued apace in the late 1970s, for the launch in 1980 of a quite extraordinary car – the Audi Quattro. This permanent four-wheel drive system was mated to a high-performance turbocharged fivecylinder engine, which put out 200bhp. Sure, it was quick, as the Audi 80-derived Coupe was not a heavy car. But it was the sheer usability of this performance that left dealers, journalists and, subsequently, customers totally dumbstruck. You had twice the wheels to channel power through – so two times the rubber to put it

26 | CarDealerMag.co.uk

down on the road. With the added benefits of neutral, balanced handling, it meant the Quattro was a ferocious point-to-point machine. On back roads, it left even Ferraris and Porsches for dead. This wasn’t lost on the motorsport boys. Soon, the inevitable rally car arrived – Audi exploiting a rule that supported 4WD cars. In an instant, it completely changed the rallying world, too. Escort Mk2s were wiped out. Lancia Stratos, relegated. Today’s WRC machines owe their all to this car. Which, let’s not forget, was phenomenally successful in rallying. Stig Blomqvist, Walter Rohrl, Michele Mouton, all won rallies in it. Mouton was actually the first female to win a world rally championship. Audi made less than 11,500 Quattros between 1980 and 1991. These numbers are surprisingly low, given the sheer impact of the famous model; proving what a turnaround legend it is. But every one was massively significant for the UK dealer franchise – still, don’t forget, sharing space and fighting for attention with

Volkswagen in British outlets. The brand before had no identity, particularly in the UK. What the Quattro brought to the table was engineering excellence, innovative thinking, smart design – and, yes, Vorsprung Durch Technik. Audi’s smart, savvy profile was born completely from this car. What’s more, it gave dealers the clout and impetus to make a success of their own network. Today, that stands at 133, and will soon even include Europe’s largest car dealer! Now, nearly 30 years on, you just need to look at where Audi is today, for testimony to what a vital car it was. How significant it was for Audi dealers back in 1980s to, for the first time, fire up the Quattro…

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finance

first AID

Want to see the green shoots of recovery at your dealership? Then you need to start going after the sales you wouldn’t normally be targeting, First Response’s Jonathan Pollard tells RICHARD AUCOCK

ar dealers have a great opportunity to win extra sales – by going after the customers that AREN’T out there! This, explains First Response director of operations Jonathan Pollard, is a situation that’s arisen because of the current economic climate. In short, the dreaded credit crunch. ‘In this climate,’ he says, ‘how many customers believe they cannot secure finance for a new vehicle – so stay at home and make do with the car they have? ‘The withdrawal from the market of some of the traditional larger finance players in the non-standard lending arena, with their enormous advertising budgets, has left a large hole in attracting the average customer out of his armchair and down to the pitch.’ In short, car finance is being promoted less and

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less these days – and, when it is, it’s only those with comparatively good credit histories who are sought. ‘Even fewer promote credit problems as something that can be overcome,’ he says. It’s a situation car dealers are playing a part in, too, adds Pollard. ‘Driving past our traditional small to mediumsized dealerships, it is the same story. It is hard to spot many who are offering finance options for those same people who may want and need

a car, but assume they can’t get credit. ‘If you were someone who had had some credit problems, and had just been refused an overdraft by your bank – but need a car and finance to fund it – what would attract you on to your pitch to buy a car?’ Ironic, isn’t it – as such solutions become

‘First Response has an enormous appetite for lending to people who, at some point fell on tough times, but are now back on their feet and in a position to afford a new car.’ Jonathan Pollard, First Response

more necessary, so promotion becomes less commonplace, making the route easier to overlook. This is doing nothing to overcome negative perceptions people have, either. Enter specialists such as First Response. It’s a company that began trading a decade ago, and is focused on helping get credit for customers who find difficulty in doing so. The non-prime prospects. Some 10,000 people a year, in fact, through more than 6,800 car dealers. Pollard says the company can pair finance-approved customers with car dealers, or customers can approach dealers themselves. First Response does all the necessary checks and admin, reducing the risk for all concerned. Indeed, monitoring risk is something the company does very well. For obvious reasons. ‘We at First Response could never make the maths work lending to people who would never pay us back,’ says Pollard. Neither could many of the company’s rivals, either, he says – ‘although they’ve had a good go at it…’ He adds: ‘First Response has an enormous appetite for lending to people who, at some point, fell on tough times, but are now back on their feet and in a position to afford a new car.’ Indeed, Pollard fully admits that Nottinghambased First Response, which also has offices in Glasgow and Manchester, isn’t the only company out there doing this, despite the big changes in the marketplace. ‘There are several finance companies who kept their heads screwed on and are operating successfully in the market today.’ Which involves? ‘Taking measured risks, offering financial solutions and moving additional cars

off dealers’ forecourts that otherwise would not be sold.’ Making deals happen that might otherwise stumble – which increases revenues for all concerned. It’s good business. ‘There is more than enough non-standard business to go round at the current time, because of the reduced competition,’ he says. So where are the big gains to be had for dealers? ‘There is much more business out there for all, if we start telling people what is available and drawing people out of their houses,’ he explains. ‘We believe that improving the finance message on the average dealer pitch, and tweaking the advertising so as to get a helpful can-do message across with regards to finance, is worth three to four extra car sales per month on a 30-car pitch.’ That’s a sales increase of 12.5 per cent! ‘And the three to four cars it is worth today can only grow,’ adds Pollard. He is clear on the benefits First Response offers too – and frustrated by the negative perception of sub-prime finance in society. ‘Non-standard finance is hailed as one of the causes of our troubled times, particularly mortgages, in both America and in Britain,’ says Pollard. However, it will inevitably have to be a major part of the solution, especially in car finance. ‘If the last recession is anything to go by, we can expect one in four of the adult population finding problems obtaining prime finance over the next five to six years, due to credit problems they are having today. That’s a huge slice of the population.’ It is vital you start considering non-prime finance now, he says, if you are to protect and grow your position in the future; it is a reality that’s not going to go away. Pollard adds: ‘Is now the right time to get back into marketing finance in your dealership? I think it is; if not for the sake of the opportunities you are missing today, then for the opportunities you will attract tomorrow…’ Sub-Prime Time, p66

CarDealerMag.co.uk | 29

feature Times may be tough at Renault, but as James Baggott discovered, the French giant’s restructuring plans mean that a spectacular fightback is on the way...

ake an isolated look at Renault’s sales figures and you’d wonder what on earth has gone wrong. Registrations are down some 57 per cent on 2008, and the brand’s posting monthly sales figures that look far worse. In May, it was the third worst performing marque with sales down 64 per cent, behind only Hummer and Chrysler. But, sat chatting to the confident UK managing director Roland Bouchara and his commercial operations director Len Curran, you wouldn’t guess it. These are two guys with a plan – one that’s been two years in the making – and they say the figures only tell half the story. ‘In the first quarter of this year we decided not to follow the other manufacturers with their huge discounting,’ explained Bouchara, in his thick French accent. ‘Availability has hurt us – this is a big part of why market share has been lower than expected – but we are confident in our business plan. ‘Our dealers are happy. They are making good profit on the cars they sell – and this is important. And the scrappage scheme will really start to benefit us from September.’ We’re sat in the boardroom of Renault’s head

office in Rickmansworth, Hertfordshire. Based alongside its ‘alliance’ partner Nissan, Renault’s modern offices are within spitting distance of a snarled-up M25. It’s a few days since May’s sales figures have been issued by the SMMT, and I was half expecting the meeting to be called off – but it’s testament to the confidence these directors have in their ideas that they’re willing to take the time to explain them. ‘Two years ago we launched a plan called Renault 20 with the key aim for us to work very closely with our dealer network,’ says Bouchara. ‘Usually manufacturers make all manner of demands so this time we said, “Ok, let’s get together and come up with some working rules and work out how we can reduce your distribution costs”. ‘The objective was to achieve, by 2010, a cost reduction for dealers of an average £148,000 per year – as of April we are there on that figure. Dealers are now financially better off. ‘And I would say we are probably one of the manufacturers showing the best profit levels for our network – at a time when most of our rival networks are showing a loss. ‘How are we doing this? Well, that is down to

Name Roland Bouchara Job title Renault UK managing director Age 50 Family Married, two daughters Drives Laguna Coupé Lives London CV Joined Renault in 1989, with background in finance and economics. Previous roles within company include marketing director for France as well as pilot of the Renault-Nissan Alliance in Europe. Was managing director of Renault South Africa from 2003, becoming MD of Renault UK in October 2006.

Name Len Curran Job title Commercial operations director Age 50 Family Married, three sons Drives Espace Lives Buckinghamshire CV Started his career at Fiat and Unipart International. Moved to Renault and worked his way up through various dealer-facing roles including area operations manager; In 2001 became manager for commercial operations; appointed director of commercial operations in 2006.

30 | CarDealerMag.co.uk

the strategy we started two years ago. Yes, this has not been exactly understood by everyone – but it is through this that we have lost market share.’ Bouchara explains he made a conscious decision to cut loss-making channels from the business. Daily rental and Motability have both been axed, resulting in those sales figures that make such grim reading. ‘We lost market share because we wanted to stop being a non-profitable business first for Renault and then dealers,’ says the UK chief. ‘We have reduced our sales on non-profitable business like Motability, which are not only non-profitable for Renault, but all manufacturers. ‘Our strategy has instead been focussed on improving our image, our customer service problems, making sure our products are attractive and addressing running costs. ‘After that it is quite easy to claw back our market share. I could, if I wanted to, instantly add 1,000 vehicles mechanically to our sales. But we have decided not to do this. ‘With Motability we are at one or two per cent – we should be at six. But tomorrow, if I wanted to lever up the gear, we could add 1,000 vehicles to our figures. ‘Some manufacturers decided to be in all avenues like this – but we did not: it is a choice. If the financial situation and the pound are looking better in the future – we will be back, but for now we have decided it is not for us. ‘At the end of the day, if I come back on daily rental, a fleet deal or Motability then we will be fine – it could quickly change, and that’s quite important to remember.’ The plans Bouchara speaks of have had their drawbacks though – most notably the huge cut in dealer numbers across the UK from 260 to just 200 by the end of the year. Commercial operations director Curran, who has worked his way up to board level from various dealer-facing roles across the UK, explained the cull wasn’t without emotion. ‘In some cases we have had to issue a number of termination notices in order to get to our target number,’ he explains. ‘In many cases it was by mutual consent. In some areas it was easy where there was a nucleus of dealers in a geographical area that could be taken care of by the one outlet; in some cases it made commercial sense to do it. ‘The ones that were more difficult were the ones where you had to make a decision. We used a

‘Our strategy has been focussed on improving our image, our customer service problems, making sure our products are attractive and addressing running costs.’

scorecard system which showed us which dealers were best suited to manage that territory. These were difficult and there was a bit of emotion in these cuts but it wasn’t just about cutting the size of the network – it was about having the right dealers, in the right locations, with the right management.’ Every Renault retailer in the UK now knows how it fits into the manufacturer’s plans with a few currently working out their notice periods. But that’s not to say there aren’t any open points – Curran confirms they are actively seeking retailers in several areas. ‘We have half a dozen open points in the UK and are in the process of filling them. But we are selective of who we take because we’ve got a model that is profitable and robust. It gives us much more flexibility in who we talk to and who we draw into the franchise. ‘They must have the right level of facility, right level of financial funding and a robust structure, but being alongside another franchise does not frighten us – we have a strong proposition and we’ll take anyone on from that point of view.’ The marque has some exciting plans too. Not only are there a host of new model launches planned – giving Renault one of the youngest model ranges on offer – but it’s also making huge strides in green technologies. At the forefront of the manufacturer’s plans are >

CarDealerMag.co.uk | 31

feature Finger on the pulse electric vehicles and at this year’s Frankfurt Motor Show we’ll see the direction the maker, alongside alliance partner Nissan, is taking. The marque’s press spokesman Tim Jackson – who was also sat in on our chat – confirmed that Renault plans to have a range of electric vehicles that appeal to 30 per cent of the buying public as early as 2012. ‘The biggest challenge facing the car industry is to manage the transition to the electric vehicle,’ said Bouchara. ‘We cannot continue to manage the world as it is and we believe the electric vehicle – the zero emissions car – is the best solution for the industry. Renault-Nissan want to be launching a car of this type by 2012. ‘We are well in advance of other manufacturers here and there is no reason we cannot be the leader. But the market has to manage this transition. What will be the job of the dealer? We are already speaking with our network on this; we are speaking with the government too – we have to, because electric vehicles will mean we have to rethink the way we do things now. ‘In the next 10 to 15 years – which isn’t that long really – electric vehicles will be a major part of the market.’ The real problem is convincing people that EVs are a viable alternative to conventionally-fuelled cars – short ranges and hassle refuelling will put off many buyers. But Renault has a clever solution to this. The Renault EVs – which will have a range of 150km – feature an on-board computer system that will divert the car to a battery station when it needs more juice. You’ll simply drive into these car-wash style booths and a computer will slot a new battery in place. The whole process is designed to take four minutes – quicker than filling your car up with petrol. Obviously this

would mean a sea-change across the country and an industry wide standard battery embraced by all marques, not just the Renault-Nissan alliance. ‘We’re working with all manufacturers to try and convince them this is the best way to go because plugging the car in at home is not the way to do it,’ added Jackson. There are certainly big things ahead for the manufacturer, but what about the here and now? What message would Bouchara give to his dealer network? ‘Have hope in terms of the market share increase and faith in what we’ve done,’ he says. ‘And be confident in our ability to come back. ‘It has been tough in the last two years as we started a strategy that was not easy. In November 2007 we said to our network we wanted to be one of the most profitable franchises within the generalist marques. Today we are – we are – I’m not speaking fiction here, we really are. We did it; we got the results.’ Curran is also buoyant on the subject: ‘We’ve taken the pain, we’ve got ourselves organised – now it’s time to move forward,’ he says. ‘We’re confident we’ve taken the right action. ‘We’ve got the best range now in terms of strength and depth. We’re selling good cars, at a good price – but most importantly with an exceptional level of profit per unit. We’ve all been where the Koreans are now – buying volume for the sake of volume – but as they say: volume is vanity, profit is sanity.’ Bouchara adds: ‘All we need to do now is to increase our volume and come back on the channels we left for profitable reasons. But if the market conditions are getting better – and they are – then we are in a better position. Dealers have to keep the faith – we will be back.’ [CD]

‘The Renault EVs – which will have a range of 150km – feature a computer system that will divert the car to a battery station when it needs more juice.’

Len Curran has been in charge of commercial operations since 2001 and at board level since 2006. If anyone’s well placed to comment on the marque’s dealer network it’s him. Here he answers our questions.

CURRAN ON… …sales figures

‘We are building up our order bank.’

…the recession

‘Dealers are holding up very well.’

...the dealer network

‘Through re-engineering our network we have improved things. We are not only downsizing it, but we have changed dealerships too for the better.’

…on the network’s strengths

‘Our dealers are very loyal – through good times and bad we have stood shoulder to shoulder with them. We have a very good relationship with our network. And it has helped that we are able speak openly and frankly with them.’

…the Renault Dealer Association

‘We don’t always agree, but the strength of our relationship means we can still disagree but find a way forward. That has helped us a lot over the years.’

…what dealers think about the marque’s plans

‘Dealers are starting to see the fruit of what we’ve done and they understand it is all about making us strong and robust and help us perform well as a network through good times and bad.’

…if Renault’s plans have been a success

‘Many manufacturers will tell you they are going to do what we have done. We did it – and it was very successful. That’s the big difference. So far, we are not financially in trouble – and that says a lot.’

…customer service issues

‘We’re still focussed on improving customer service. Part of that process was taken care of with our network re-engineering. Our customer satisfaction scores are increasing year on year and our competitors are chasing this, so we have to continue to improve.’

…problem dealers

‘As with all manufacturers there are a relatively small number of dealers that have got problems with customer service and it has been a case of addressing this. We have a specialist programme for problem dealers where we put in place a specialist who improves on best practice and helps them get better.’

…what other brands do well

‘When we started the Renault 20 programme we did look at a number of brands. We took a lot of it from what Ford did with the Ford 50 programme. We’re not too proud to say we took influences from it.’

32 | CarDealerMag.co.uk

BigMike’s

CAR BUYER 43

ANATOMY

Big Mike’s

Car Buyer anatomy You’ve all met them – the Great British Public. With the bit firmly between his teeth from a month of ‘trading to tosspots’ (his words), Big Mike went off on a tangent. Problem was, we were too scared to cut his copy to its usual length, especially when he got his Rottweiler to deliver it to Car Dealer Towers, so here it is in full...

k, I admit it. I have just about had enough. I am currently going through my annual ‘what the hell else can I do for a living’ phase, which normally happens about the same time as the sun starts shining, the birds start singing in the trees and a merry band of clueless idiots stir from their slumber and spend about six weeks wasting car dealers’ time. I don’t know if any of you have the same seasonal experience as I do, but early summer is definitely timewaster season, and over the past three or four weeks I’ve had just about all of them wandering around my lot making complete nuisances of themselves, and slowly sapping away my will to live. That left me with two choices: Either hit the bottle (I’ve been there before and it isn’t pretty), or vent my spleen another way – through the hallowed pages of Car Dealer. So, dear reader, here it is. A nopunches-pulled overview of six of the best (worst?) types of people to have on your car lot. I bet whatever margin you’ve got on your ‘Car of the Week’ that you’ll still recognise them all…

34 | CarDealerMag.co.uk

The Car Geek

rmed with a copy of What Car? or Parkers Price Guide, the car geek will wander on to your lot and inspect three or four vehicles of a similar size and price at very close quarters, occasionally referring to his literature to check up on a vital statistic or two. During this early stage of his visit, any attempt to engage him in conversations, or sales negotiation, will be unsubtly rebuffed. In a style only witnessed by office workers when contending with middle management, this chap has an air of importance completely unmatched by his talent or people skills. He’s the David Brent of car buyers, if you will. Once he has completed his research, Geek will wander over and ask you questions he’s fairly sure you don’t know the answer to, such as ‘what’s its turning circle?’, or ‘what’s the ground clearance of this car at the rear differential?’. At this point you plead ignorance, and he tells you the answer in a manner so patronising, you want to bash his lights out. He knew all along, because he’d read as much in his blessed car magazines. You will then ask him if he wishes to test drive any of the cars, or would he like to know more about any of them? He will say no, after all, what more could he possibly find out that he doesn’t know already? But, if given the chance, he will spend at least an hour leafing through the bills and service history you have for each vehicle. At this point he’ll leave, and you’ll never hear from him again. Tell-tale signs: Car Geek, for all his enthusiasm for car-related stats, will invariably drive something like a Hyundai Lantra or Toyota Corolla, purchased after three evenings spent doing some complicated mathematical equations involving fuel economy divided by residual value multiplied by insurance group. He wears corduroy.

| Illustrations: NathanDaniels.com

CarDealerMag.co.uk | 35

BigMike’s

CAR BUYER 43

ANATOMY

The Credit Cruncher

nfortunately, the easy credit of the past decade or so has bred a new type of customer – he or she who thinks it’s their right to be granted credit, no matter how irresponsible they’ve been with borrowed cash in the past. Up until a couple of years ago, this wasn’t really a problem. Unless they lived in a caravan and wore their money, all they needed was a utility bill and a down payment the size of the car’s stand-in value (which for a high mileage, ex-fleet Astra was never that much), or even better their knackered old car as a deposit. The trick was to either modify their existing loan, or manipulate the figures to make their latest purchase look affordable – and some finance houses were never the most scrupulous when the loan was secured against the car. But times have changed. Many of the sharks have fallen by the wayside, and if someone has 27 CCJs, has recently been evicted from their council house and needs a replacement for their 43.9 per cent APR Laguna, because it turns out that the only time its cambelt was changed was by pencil in the service book and now the valves are attached to the bonnet, I’m afraid it’s tough titties. But Credit Cruncher won’t have it. He thinks he can have whatever he wants by simply signing a form and then never making any of the intended repayments. And to his mind, dear dealer, that’s entirely our fault. A man tried to punch me on the nose last week because I couldn’t find him a loan on an X-reg Mondeo. Sadly, I doubt I’m not the only one. Credit Cruncher won’t be interested in anything so trivial as a test drive, and can be easily filtered by his blind disinterest in the screen price or in haggling, preferring instead to know ‘how much is it a week?’ Tell-tale signs: Brand new designer clothing (bought on credit) or tired and worn-out designer clothing (bought on credit before the bank took the card away).

Mr Negative

espite my frequent rants, I’m a jolly sort of chap. When you’re larger than life, like I am, you have to be. Which is why I can’t stand people who are instantly negative. You know, the kind of person who, when you say ‘Good morning’ replies with ‘Is it? I hadn’t noticed’. Mr Negative is the kind of chap who attracts disaster, which is why it’s not necessarily advisable to do business with him. It’s most likely that he’s come to your lot to buy a replacement for the world’s most unreliable car, no matter what make or model, proving that even machines can be driven to near-suicide by his less than cheery disposition. He will be looking for a change – he’ll rattle off all his previous woes and tell you he doesn’t want a car that’s French, German, Japanese or British, and can’t be green, silver, black or red because of bad experiences in the past. Once you’ve steered him in the direction of the grey Skoda Octavia you were saving for such eventualities, Mr N will go over the car and point out all the things that are wrong with it. ‘Tyres’ll need doing soon’, ‘I think the head gasket’s about to go’, ‘that exhaust pipe looks a bit rusty’, ‘the air con smells of dead things’, etcetera, ad infinitum. At this point you’ll be ready to give up, if not the sale at least life itself. But be careful – Mr Negative enjoys misery, and may suddenly stick his hand in his pocket and give you the full asking price. I know, because it happened to me with that very grey Skoda… Tell-tale signs: Look closely for signs of shaving cuts, embarrassing tears in clothing that happened en route and a mouth that looks like it has been stuck on upside down, and turns even further downwards when he smiles.

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The Test Pilot

very weekend, hundreds of estate agents waste their time showing Daily Mail readers around houses they can’t afford, largely because their new-build detached des res is in negative equity, and they have no intention of moving anyway. All they really want to do is see a few zero per cent APR sofas and curtains in context, rather than in the DFS showroom. While some may argue that this is a perfectly acceptable use of estate agents’ time, for it stops them doing whatever it is that makes them so unpopular, I have a certain amount of sympathy for them. After all, like me, their job is to chase a sale. And they can’t be chasing a sale when the person they’re trying to sell to has absolutely no intention of buying. Largely, but not exclusively, male, the test pilot is someone who fancies themselves as the next Jeremy Clarkson, to the extent that a good number of them will go home and blog to their internet buddies after they’ve spent the day ‘spanking’ the stock of various car dealers – to merely ‘drive’ a car suggests some kind of sexual deficiency, bred, no doubt, by the assumption that a girlfriend or wife is something you order online. Amazingly, they never go for a quick test drive in a Corsa or a Fiesta, but if you’ve anything a little odd that appeals to the enthusiast market expect a queue of plonkers to visit you on a Saturday morning, all claiming they’ve been looking for one for months. Last month, I had a Sierra Cosworth in stock – a really lovely early example in Moonstone Blue. And, I kid you not, at 9.30am when I came to unlock the gates there were six of them there. They gave themselves away as timewasters, though, by their willingness to let the others have a go first because waiting till last might get them a longer test drive. A serious buyer would, of course, fight the others off with a stick, so I did the decent thing. I removed the rotor arm and pretended it wouldn’t start…

The Joker

o, not Batman’s arch enemy, but often the car dealer’s. The problem with The Joker is that he’s very difficult to detect. If you’re like me, then despite years in the business you’ll still get a little tingle of excitement when you have a buyer coming to look at a car, and you think you’re going to get the deal. Like it or not, it’s the scent of money – it’s why do we all do this for a living! The Joker is the person that deflates you like a balloon that’s just flown into a hot lightbulb. He’ll phone a couple of times in advance to get details of the car, will ask you if you’d rather have cash or a banker’s draft, and will tell you all about how fond he is of that particular make or model. When he arrives, having often travelled from afar and asked to be collected at the train station, he’ll take the car out for a test drive, make all the right noises and poke around it for several minutes declaring satisfaction with everything he sees. Then comes the killer blow. He’ll find a fault, and to him it’ll be a deal breaker. I had a guy like this the other week, who came to look at a lovely old Mercedes I was selling. Everything was perfect, he said, apart from the fact that one of the door trims on the back door had lifted a bit in the sun, and that in his eyes it would cost a fortune to put right. He then offered me two-thirds of my asking price and told me he was doing me a favour. I told him to go forth and multiply, and you should do the same, because The Joker thinks you’re desperate and he’ll get a bargain out of you. He’ll then tell you of all the other cars that are advertised privately for less. At which point, you tell him to go and buy one of those instead. Simple.

Tell-tale signs: Test Pilot often wears a ‘comedy’ T-Shirt with ‘I am The Stig’ written on it. Despite being in his late twenties upwards, he may well have his mum with him. He often drives a car that’s better or more valuable than the one you’re selling, and clearly doesn’t need replacing.

Tell-tale signs: Tricky one this, for there aren’t any. If a buyer seems too good to be true, he probably is. Often, there’s a little smirk that gives his intentions away…

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BigMike’s

CAR BUYER 43

ANATOMY

The Boy Racer

traditional timewaster, the Boy Racer has been around since the modified car scene took off in the 1960s. But from his origins as someone who put new cylinder heads and Mag Wheels on Ford Anglias to make them go faster, he has developed into a much more unpleasant breed of irksome youth. IQ reducer perched back-to-front atop his head, you’ll find him scouring the shelves of Halfords looking for clear lamp lenses and fake exhaust pipes to attach to his girlfriend’s Peugeot 106. His initial approach will be to swagger on to your lot (chavs, I’m afraid, do not know how to walk) brimming with arrogant confidence, cigarette glued to his lower lip in flagrant disregard of the UK smoking ban. His immediate familiarity (if you’re lucky he’ll call you mate, or in chav speak ‘blood’, ‘me-hoodie’, or ‘w**ker’) will immediately get your heckles up. If you’ve anything high performance, especially a Subaru Impreza or Mitsubishi Evo, he’ll make an immediate bee-line for it, asking puerile questions such as ‘what does it do, man?’, while pointing out various other vehicles on your lot such as Vauxhall Zafiras and Ford Galaxys and proclaiming them as ‘gay’. I’ve often wondered about the logic of this, as the majority of people who buy such vehicles generally have enough

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children to start their own playgroup, so by definition most probably aren’t gay... but Boy Racer isn’t someone you can argue with. In the past, you often had to go through the motions in case there was a finance house stupid enough to do business with them, only for them to come back a few days later begging for their deposit back because the insurance company won’t touch them thanks to ‘that drug driving thing a few years back’. Today, you may as well forget them. If they’re genuinely serious buyers and you have the right Impreza for them, they’ll be back anyway. But if not, leave them be. That way, you won’t have to go out for a test drive with them, which may involve a burnout or a trip to a drive-thru McDonalds. Or occasionally, if you’re really unlucky, both. Tell-tale signs: The Chav ‘uniform’ changes on an annual basis, although some stalwarts such as major label sweatshirts with a hooped design will always remain in fashion. The 2009 look is to wear loose fitting grey jogging pants, under which is a carefully stuffed pair of tight fitting undies, subtly increasing the size of said Boy Racer’s ‘man bump’.

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P A R C S e car h t d e e sav in full m e e ch ge s e initiativ sers a p crap ith th .. and lo S t n me sher? W inners. n r e ov the cru the w g e h t th Has ess from h up wi c n busi , we cat g swin

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Words: Richard Aucock

KIA

ne carmaker instantly visible in support of scrappage was Kia. UK MD Paul Philpott is the mastermind behind this, and he was in no doubt as to the scheme’s importance for the brand. Indeed, he sees it as a turning point for Kia in the UK. The sales stats bear this out. ‘Our market share is well up – as, importantly for us, is dealer profitability. We’re able to talk of 2.5 per cent return on sales,’ he exclusively told Car Dealer. ‘In May, 28 per cent of our volume was scrappage. This was incremental volume, too – way over where our budget was. And if that was good, June has seen us do well over 50 per cent scrappage. And again, it’s incremental.’ This, says Philpott, is because of the maker’s fast reactions. And that’s despite the government’s curveball of manufacturer co-funding. ‘The first indications we had of this only came within the final 24 hours before the Budget,’ said Philpott. ‘We were disappointed with the decision. If scrappage was about supporting the car industry, then placing half the burden at the manufacturer’s door is a big expense – particularly as this sort of scheme is always going to be driven by small cars. ‘But we still knew we had to react fast. We couldn’t sit on our hands – we sensed there was an opportunity there. We wanted to help car dealers be in a position to respond, and accept orders, on the all-important first weekend after the scheme was unveiled.’ Philpott paints an interesting picture: ‘It was like appointing the new Pope! Seriously, all key stakeholders were locked in a room with me, and nobody was to leave until a decision had been reached. All that was missing was the white smoke up the chimney…’ Kia’s response was superb, though. ‘We were on BBC News within hours of the scheme going live. We made The Sun, too. And, most crucially, by late Thursday, we had a trading position confirmed to car dealers. ‘This meant they could fully capitalise on all the scrappage-orientated interest that was being created.’ There are two very important scrappage trends developing for Kia. ‘We are seeing customers who have never previously bought a new car – those who have always gone for used – or the ‘once in a lifetime’ buyers. All these are incremental sales. ‘But, longer term, there are even more positives. Scrappage has given our franchise confidence and momentum. We’ve seen market share increase – retail in particular is going up. ‘There’s no substitute for momentum. And there’s nothing as good as being busy. Salesmen feel we have grabbed the lead, and this has given them huge confidence.’ It’s success that will continue when scrappage is over too, says Philpott. ‘Car dealers will have a bigger Kia car parc to capitalise on. The size of the parc is important for profit; even when margins are thin, it’s helpful for growing future profits. ‘No-one will get rich on the margins of most scrappage cars. But it’s still a massive opportunity that we’re fully capitalising.’ And one dealer most certainly doing that is Bolton’s Kia franchise. Dealer principal there is Alex Purdie (pictured). ‘In the first weeks, it was virtually all Picanto,’ he told us. ‘This was where we had a steep learning curve; these customers were very different to the norm. Some had never bought a brand new car. But all know to the last tenner exactly how much they could afford. ‘Interestingly though, the customer profile is now changing. More “thinking” people are coming in – those seeking a second car, rather than a budget replacement. The sales mix has changed accordingly. It’s spreading through the range, so we’re now doing, say, five per cent Carens, five per cent Soul, five per cent cee’d, and so on.’ Purdie says a similar trend has been seen in finance uptake. ‘To start with, there was very little finance – people came in with banker’s drafts. More recently though, finance is running at around 50 per cent.’

And the trade-ins? Mainly European models with a couple of owners and condition that’s so-so – ‘not prime’. The dealership has seen a lot of Nissans scrapped, but hasn’t seen any really old vintage cars yet. It’s all mid-range, unexceptional stock. In terms of marketing it, Purdie admits little has been done so far. There’s simply been no need. ‘We had great plans to take scrappage out to market – but we simply haven’t had time to process them, as we’ve been so inundated with enquiries!’ The dealership has placed but one strapline ad in the press; other than a banner and a crushed car on the forecourt, no other marketing has been required. ‘Even now, weeks into the scheme, we haven’t seen any drop-off in showroom traffic. We have a counter on the door, and it’s going up almost every day. It’s a bit embarrassing, to be honest; we’re unable to offer appointments for test drives now, such is the demand… ‘So long as the government doesn’t run out of cash, I can’t see scrappage tailing off.’ There are clear long-term benefits, too – important for a growing brand such as Kia. ‘The main thing is building our aftersales parc. More cars out there means more demand for servicing and parts; we’ve also got the systems in place to contact all these customers, to harness these return custom possibilities. ‘That 90 per cent of the people being brought in are local is a further boon here. It strengthens future custom possibilities, and helps cement our sustainability. ‘The overall profit return is not outstanding, but for the long-term health of the business, it’s a big bonus.’ >

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FORD he Blue Oval is the clear market leader when it comes to scrappage. At the time of going to print, nearly 10,000 of the 60,000 scrappage orders were Fords – and half of those cars had already been delivered and were on the road. Ford MD Nigel Sharp confirmed this: ‘The scrappage scheme is boosting sales of new vehicles – and, in doing so, helping to secure jobs at Ford and our dealer partners. ‘It is early days yet, but increased web traffic and showroom visits are now turning into vehicle registrations, so Ford’s optimistic as it heads into the summer selling months.’ Great news looking forward – and it sure is creating a massive buzz across the huge UK car dealer franchise. One young retailer in particular to have benefited is Tavine Achtar of Polar Ford (pictured right). She has sold big already under scrappage – and is just 23! That’s provided no barrier to the sorts of customer she’s sealing deals with. ‘Young, old, single, married – we’re seeing all sorts of people signing up for the scheme,’ she said. One thing they do have in common is recognising a good deal. ‘They don’t change their car as often as normal buyers – for some, this could be their first ever brand new car.’ Or, in the case of some older couples, their first in decades. ‘We’re taking in scrap cars that people have owned since new,’ she says. Models including Jaguars and Passats, as well as more run-of-the-mill stuff. Polar Ford worked smart even before the scheme went live. ‘We joined the scrappage petition before it was announced,’ said Achtar. ‘This meant we were speaking to customers, and promising to get in touch with them once we knew anything.’ The moment scrappage was announced, Achtar and the team set to work, getting in touch with all these customers to see how they’d like to go ahead. A pre-qualified database to utilise – brilliant. Key to Achtar’s success is making it simple for her customers. ‘We make it as easy as possible for them. We sort out all the admin, and explain each step really carefully.’ Customers, in turn, are often adding to this simplicity by paying cash. ‘People are looking at the whole deal, not just the car,’ adds Achtar. ‘This is where we introduce finance schemes, but uptake can be limited by people’s intentions to again keep hold of cars for five or 10 years.’ Achtar would prefer finance, of course: ‘These people will keep on coming back after two or three years, helping future sales, too.’ Generally, the customers are less demanding. ‘Of course, they want something extra, but once we explain it all, especially our tight margins, they’re happy with mats and a full tank of fuel. We don’t have enough profit from the sale to do anything else.’ New car sales manager Maureen McEvoy confirms the scheme has really brought the buzz back to Polar Ford. ‘It’s perked people up. All departments have grabbed it by the horns – we’ve even got a right old knacker as a display car outside! ‘Those who say there’s less cash around are wrong,’ added McEvoy. ‘People have been simply afraid to spend it. But now, they’re looking at low interest rates on bank accounts, the fact they can get a “free” £2,000 under the scheme, and are rushing to sign up. ‘It really is working very well.’

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HYUNDAI yundai UK MD Tony Whitehorn is in no doubt as to the opportunity scrappage presents. ‘10 million people are driving qualifying cars. For them, it’s seen as a one-off opportunity to buy a brand new car,’ he tells Car Dealer. ‘They’re not necessarily looking for the cheapest, but the best return on investment – they’re considering specification, equipment, warranty and so on. ‘For these customers, this will be a new experience, and they want to get the best from it.’ It is essential, he says, that dealers remember this. These customers are little different to any other, so ensure you still give them the special treatment they deserve. They’ll remember it. And you.’ For positive word of mouth, it’s pure gold… ‘Certainly though, dealers like these deals,’ he says. ‘They’re so much simpler than usual – there’s no part-exchange clouding the issue, and people sense they’re already getting a bargain, so are happier to pay the price listed.’ Hyundai is another brand gaining big, thanks to scrappage. Indeed, at one point in June, it was actually UK number two for retail sales – ahead of Vauxhall! Thanks to no little work from the UK management team. ‘Our scrappage deal was an entirely UK-based decision process,’ reveals Whitehorn. ‘We knew speed was vital. We’d already penciled in a breakfast meeting with car dealers on the Friday after the Budget – the day before, we prepared a full presentation, and arranged new price lists to be compiled. This is probably the reason why we’ve benefited; we were very reactive and flexible. ‘There were still unanswered questions, but the risks weren’t massive. All we needed to know was that our exposure was £1,000. So, we stood behind our dealers, and let them get on with sales.’ A bold strategy, but how it’s paid off. ‘It’s an incredible position for car dealers. Customers are literally queuing up in front of salesmen’s desks – I’d never have thought I’d say that at the start of the year. ‘Our multi-franchise dealers are even having to reapportion staff within the group, to cope with the demand at Hyundai.’ Inevitably, Whitehorn admits there’s not as much profit on i10s and i20s under scrappage. ‘But the number of sales have more than compensated,’ he says. What’s more, normal retail sales are benefiting too, as the brand’s profile is raised and awareness goes up. ‘The margin is small, but every customer is a sale – and getting them sitting there allows the sale of service plans, Supaguard and so on. ‘Still, the biggest challenge is that scrappage is a short-term solution. Even so, it’s an opportunity car dealers shouldn’t fail to take. There will be less footfall when it ends, but the increased profile should remain. ‘Our aim all along has been that whenever scrappage is mentioned, people think of Hyundai…’ Indeed, many are thinking of Richmond Hyundai. The Portsmouth dealer is, reckons dealer principal Michael Nobes (pictured), the UK’s largest scrappage dealer – and it’s a position that’s been won through positivity. ‘Many in the industry were reserved about it, perhaps upset by the government’s offer being half what was expected,’ he tells us. ‘But I thought that anything was better than nothing – so we took a positive view going forward. Hyundai’s brand strengths of value for money chimed perfectly with this, giving a huge platform to build upon. ‘The scheme has brought in lots of people who are not badge or prestige conscious. So long as cars are good value and reliable, they’re happy. This gives them an easy way to realise at least £2,000, so it appeals to their bargain hunter instincts.’ Nobes, like many others, has taken in a huge variety of cars for scrap – ‘there’s even an R-reg Mercedes E-Class estate sitting

outside, waiting to be collected!’ Hyundai has not previously been the top of these buyers’ shopping lists, says Nobes. ‘So in my 14-year history here, we’ve always marketed cleverly. We know what to do. Now, with scrappage, we’ve been able to jump Hyundai to the top. It’s a superb position.’ This has seen Nobes appear on the BBC national and Meridian news TV bulletins, in the press, on the radio – you name it, he’s been there! And the results are in the showroom right now. ‘The weather this week has been great. Normally, such times are dead for us. But now? We’re really busy! And are on track to exceed May’s record month.’ The sales aren’t as profitable, admits Nobes: ‘But the volume is through the roof. Think of supermarkets – they pile ’em high, sell ’em cheap. That’s what we’re doing here, and doing good business by doing so.’ Customer service is where Nobes is helping establish long-term relationships. ‘Customers don’t expect the levels of service we offer – it’s a surprise,’ he says. ‘This helps us sell add-ons such as service plans. We make it simple, like paying a direct debit, meaning it’s all as easy as can be.’ Nobes is hopeful it will continue, too. Even as we spoke, he was still to witness any drop off in interest: ‘Indeed, word of mouth is now starting to work. We’re simply getting cars in front of so many people; these are prospects normal marketing channels don’t reach.’ >

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ON THE OTHER SIDE

‘The government has missed a trick’ crappage isn’t brilliant for everyone. While franchised retailers are doing well, some used car specialists are suffering. Customers are seeing their old cars as a route to an easy £2,000 off, so are bypassing the value end they’d traditionally frequent. What’s more, car supermarkets are also pointing out that even better deals are available on nearly new models – which some customers are overlooking in the frenzy. One of the first to come out against the scheme was Motorpoint MD David Shelton. He believes the scrappage scheme is far from being the panacea to the car industry’s ills. ‘The scheme has provided car manufacturers (and their network of retailers) with nothing more than a short fillip at the taxpayer’s expense,’ he says. ‘Yes, 60,000 cars have been ordered to date under the scheme, but how many more is this over and above normal? Not too many.’

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He said the only ones really benefiting are the government – thanks to the increased VAT receipts – and car makers such as Ford, who have raised prices many times during the year. ‘Really, the government missed a trick. Rather than cosying up with the car manufacturers, they should have taken our advice, and extended the allowance to vehicles up to a year old. ‘Then, you would have had a scheme that would really have made a difference, as you would have then made driving a new or nearly new car well within the reach of the vast majority of the population. ‘Time and time again, we’re getting customers through the door telling us that, even with the £2,000 discount, the cars on offer through the scheme are too expensive. ‘Usually, we can provide them with the same car, only six months older, for anything up to £5,000 less. And, surprise surprise, they end up buying from us.’ His advice for customers and car dealers is to fully do their homework. ‘While some of the offers may appear attractive on paper, once people study the small print, they will soon realise there are far bigger savings elsewhere,’ he explained. [CD]

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...in association with G-Forces

The rise of the Silver Surfer When high street giant Littlewoods expects to do more business online than ever before you know times are changing, says G-Forces

nternet usage is on the rise. It’s undeniable. No longer is it only beloved by ‘pesky youngsters’. The rise of the ‘silver surfer’ has meant that the internet population share of the over-55s has grown to 19 per cent. Given that there are now 43.7m people online in the UK, according to Internet World Stats 2009, that means that some 8.98m over-55s use the internet. Littlewoods, once the bastion of high-street shopping for clothes and home accessories, enjoyed knowing that everyone had a copy of their catalogue propping up a table leg at home. Now they are planning to take 70 per cent of their total revenue online by 2010. Only a few years ago common consensus was that, while it was great for selling items like books and CDs, people wouldn’t use the internet for buying products like clothes. Now clothing companies are taking millions online each year. In order to do this they ensure that their websites offer as close a representation of their actual shops as possible. The same applies to car dealers. Selling cars online goes far and beyond auction sites. While cars are not being bought and delivered through the internet (yet), automotive websites offer as close an inspection of cars as possible without actually handling the car. With plenty of opportunities to generate qualified enquiries online, a digital dealership offers more potential for getting a customer into a car than print ads alone. In fact, an effective automotive website is proven to increase footfall far and above the level of drop-in customers. At G-Forces we have a customer in north Scotland selling cars to buyers in the south of England. With more people willing to travel increasing distances to get a bargain on a car, reaching this audience is crucial. Again, this is where online marketing is pivotal for auto dealers. Adverts in the paper will help

High street retailer Littlewoods is planning to take 70 per cent of revenues online by 2010

‘In order to sell online, clothing retailers make websites representations of actual stores.’ you shift a couple of cars locally, but to reach a bigger audience dealers need the internet. Distance evaporates online and it’s more cost-effective too. One of the UK’s leading and fastest-growing car supermarkets invests in both online and offline marketing and, through lead-tracking software LeadBeast, has seen the difference in

performance. Not only does online advertising generate more qualified leads than its offline equivalent, but the cost of those leads is significantly lower (for example, £13.40 online to £52.51 offline in May 2009). Offline advertising such as a quick ad in the corner sweet shop window is fine – if you want to sell just one or two cars a week. However, if you want to sell a lot of cars – and I don’t know an automotive dealer that doesn’t – then you need presence and marketing where the customers are: online. To ignore that audience and still hope to thrive is akin to expecting a band to fill Wembley Stadium on the back of a flyer on a lamppost in Tintagel.

CarDealerMag.co.uk | 47

...in association with Really Good Domains

dot com

...in association with Really Good Domains

IsTwitter a load of twaddle? It’s the new bandwagon that everyone seems to be jumping on, but Really Good Domains isn’t sure Twitter’s for dealers

he latest sensation to sweep the media regarding the internet is Twitter – the micro-blogging website. You will have undoubtedly come across it and the plethora of associated terms including tweet, twit, twaggle, and hundreds of other words beginning with ‘tw’. The idea behind the website is a simple one and born from the idea of sending an SMS text message to everybody you know rather than a single person. Users of the site attract followers, followers receive your updates (known as Tweets), and you can follow as many or as few users as you wish – it’s as simple as that. Twitter would appear to be the current flavour of the month following Facebook and the earlier Myspace in gathering lots of column inches and nearly as many users! But much of the media interest has been how businesses and brands have been trying to engage their audience by hopping on the Twitter bandwagon – following the promotion of it by many celebrities that use the service like Jonathan Ross and Britney Spears. But probably the question on your lips is should your dealership be hopping on too? Undeniably as the internet becomes more ingrained into the fabric of society, with more than 70 per cent of adults spending over an hour a day surfing the internet, companies large and small need to take the online world seriously, and social marketing is the current hot topic. What is more difficult to predict is whether companies will obtain major success targeting the social media sites – or whether the tried and trusted armoury of a quality website, email marketing, and portal advertising will remain the cornerstone of effective marketing. Current thinking would appear to suggest

‘How can you communicate with your target audience when Twitter restricts messages to 140 characters?’ that for brands, and in the automotive world this is basically the marques, social media can play an important role in developing and maintaining a relationship. One closely connected example of success is with Comparethemarket.com’s Comparethemeerkat.com campaign, where Aleksandr Orlov, the smoking jacket-wearing meerkat, has almost 500,000 fans on Facebook. Where do you think those half a million people will go first for their next car insurance quote? For smaller businesses creating a buzz in social media, Twitter can be a costly and difficult route to market. How many people would a fan page on Facebook gain you? And how can you communicate with your target audience when Twitter restricts messages to 140 characters?

There are other obstacles to scale too – such as do you have the resources to commit to develop social media marketing? The advice from Really Good Domains would be to embrace the opportunities that the web brings; it really is the largest market out there and the best and most cost-effective medium to be seen on (an advertiser on SaveMoneyOnCars. co.uk worked out that it cost them well under a pound per lead by advertising on the website). However, leave the social media side to the car manufacturers and let them create the buzz over the cars you will be selling. The best advice would be to stick to what works – make sure your website is performing to its full potential, including newsletters and up-to-date deal/car information, and make sure that you can be found when people are searching for a change of vehicle by advertising on the websites which attract large numbers of visitors such as ContractHire AndLeasing.com and others from those below.

ContractHireAndLeasing.com SaveMoneyOnCars.co.uk CarSupermarkets.co.uk TheVanWebsite.co.uk CarAndVanAuctions.co.uk TheGreenCarWebsite.co.uk RoadTestReports.co.uk CarLeasingCompanies.co.u uk Cabrioletcar.co.uk ContractHireAndLeasing.com CarSupermarkets.co.uk TheGreenCarWebsite.co.uk VanLeasingSpecialOffers.co.uk SaveMoneyOnCars.co.uk RoadTestReports.co.uk TheVanWebsite.co.uk 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. CarLeasingSpecialOffers.co.uk Cabrioletcar.co.uk ContractHireAndLeasing.com CarSupermarkets.co.uk TheGreenCarWebsite.co.uk VanLeasingSpecialOffers.co.uk SaveMoneyOnCars.co.uk RoadTestReports.c com CarLeasingSpecialOffers.co.uk FleetDirectory.co.uk TheGreenCarWebsite.co.uk Cabrioletcar.co.uk VanLeasingSpecialOffers.co.uk TheVanWebsite.co.uk CarSupermarkets.co.uk ContractHireAndLeasing.com 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 GreenCarWebsite.co.uk VanLeasingSpecialOffers.co.uk SaveMoneyOnCars.co.uk RoadTestReports.co.uk TheVanWebsite.co.uk ContractHireAndLeasing.com CarLeasingSpecialOffers.co.uk FleetDirectory.co.u 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.u tractHireAndLeasing.com CarSupermarkets.co.uk TheGreenCarWebsite.co.uk VanLeasingSpecialOffers.co.uk SaveMoneyOnCars.co.uk RoadTestReports.co.uk TheVanWebsite.co.uk ContractHireAndLeasing co.uk TheGreenCarWebsite.co.uk Cabrioletcar.co.uk VanLeasingSpecialOffers.co.uk TheVanWebsite.co.uk CarSupermarkets.co.uk CarLeasingSpecialOffers.co.uk ContractHireAndLeasing.com SaveMoneyOnC co.uk CarAndVanAuctions.co.uk TheGreenCarWebsite.co.uk RoadTestReports.co.uk CarLeasingCompanies.co.uk FleetDirectory.co.uk CarLeasingSpecialOffers.co.uk Cabrioletcar.co.uk ContractHireAndLeasing co.uk VanLeasingSpecialOffers.co.uk SaveMoneyOnCars.co.uk RoadTestReports.co.uk TheVanWebsite.co.uk ContractHireAndLeasing.com CarLeasingSpecialOffers.co.uk FleetDirectory.co.uk ContractHireAndLe 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 co.uk TheGreenCarWebsite.co.uk VanLeasingSpecialOffers.co.uk SaveMoneyOnCars.co.uk RoadTestReports.co.uk TheVanWebsite.co.uk ContractHireAndLeasing.com CarLeasingSpecialOffers.co.uk FleetDirec co.uk VanLeasingSpecialOffers.co.uk TheVanWebsite.co.uk CarSupermarkets.co.uk ContractHireAndLeasing.com SaveMoneyOnCars.co.uk CarSupermarkets.co.uk TheVanWebsite.co.uk CarAndVanAuctions.c co.uk CarLeasingCompanies.co.uk FleetDirectory.co.uk CarLeasingSpecialOffers.co.uk Cabrioletcar.co.uk ContractHireAndLeasing.com CarSupermarkets.co.uk TheGreenCarWebsite.co.uk VanLeasingSp TestReports.co.uk TheVanWebsite.co.uk ContractHireAndLeasing.com CarLeasingSpecialOffers.co.uk FleetDirectory.co.uk ContractHireAndLeasing.com SaveMoneyOnCars.co.uk CarSupermarkets.co.uk Th GreenCarWebsite.co.uk RoadTestReports.co.uk CarLeasingCompanies.co.uk FleetDirectory.co.uk CarLeasingSpecialOffers.co.uk Cabrioletcar.co.uk ContractHireAndLeasing.com CarSupermarkets.co.uk TheGre SaveMoneyOnCars.co.uk RoadTestReports.co.uk TheVanWebsite.co.uk ContractHireAndLeasing.com CarLeasingSpecialOffers.co.uk FleetDirectory.co.uk TheGreenCarWebsite.co.uk Cabrioletcar.co.uk VanLea Supermarkets.co.uk CarLeasingSpecialOffers.co.uk ContractHireAndLeasing.com CarSupermarkets.co.uk TheGreenCarWebsite.co.uk VanLeasingSpecialOffers.co.uk SaveMoneyOnCars.co.uk RoadTestReports ing.com CarLeasingSpecialOffers.co.uk FleetDirectory.co.uk TheGreenCarWebsite.co.uk Cabrioletcar.co.uk VanLeasingSpecialOffers.co.uk TheVanWebsite.co.uk CarSupermarkets.co.uk ContractHireAndLeasin 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 C sales@reallygooddomains.com www.reallygooddomains.com “Number 1 in Marketing for Motoring...”FleetDirectory. 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 CarLeasingSpecialOf

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CarDealerMag.co.uk | 49 ing.com CarSupermarkets.co.uk TheGreenCarWebsite.co.uk VanLeasingSpecialOffers.co.uk SaveMoneyOnCars.c TheVanWebsite.co.uk ContractHireAndLeasing.com CarLeasingSpecialOffers.co.uk FleetDirectory.co.uk TheGreen

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cult cars servicing

in association with the Motor Industry Code of Practice

Online booking system a big hit Letting customers book their regular maintenance on the internet can be a major boon DEALERS are now able to offer an easy web-based booking service to make routine car servicing less hassle as DCML has rolled out an online facility. It gives franchised dealer customers a live feed to its service appointment availability – which they can then go ahead and book remotely. Cleverly, it also links up to DCML’s ‘Dealer Car Manager’ system. This means courtesy cars can also be booked and charged for beforehand. Even special offers and pricing plans can be loaded up, too. DCML has led the development because ‘convenience is king when it comes to car servicing’, according to the firm’s managing director Vince Powell. ‘It’s now vital that dealer’s embrace technology to give the customer a sense of control in the decision making process.’ There are big benefits for service personnel, he added. ‘In presenting prices online, service advisors are no longer having to spend time quoting for work, freeing them up to concentrate on other things.’ One car dealer which has already been using it is the Pilling Group. The firm’s Paul Barnes said: ‘We have been pleasantly surprised by how it has all worked out. Not only have we been able to drive traffic to our website and highlight the latest special offers available, but we’ve been able to generate a database of email addresses for later use and free up large chunks of time from our service advisors.’ The clever new site points to a technologypacked future for car dealerships – and it’s one

DCML’s website offers full details on service reason why students are being trained more in this field. The Bristol Automotive Academy, for example, has just installed the most advanced diagnostic training system on the market. This helps teach students by giving them ‘real life’ problems to solve. They have to identify, test and fix scenarios – just as they will when working on customer’s cars. The AT5000 system is now live at S&B Automotive Academy. ‘As vehicles become more and more advanced in terms of technology,’ said chief executive Jon Winter, ‘technicians and mechanics have to be well ahead of the game in terms of being able to fix, first time, the problems they come up against. To be the first academy in the country to take delivery of this new system is a real coup.’

Cracking the Code Chris Mason says drive customers through your door by signing up

recent independent survey reported 92 per cent industry awareness of the Motor Industry Code of Practice for Service and Repair, which is great news because it means that we have achieved our initial goal of introducing this important initiative. The next step is simple – grasp this opportunity, subscribe to the code and reap the benefits. The sector has worked hard to develop and launch a low-cost means of self regulation which can satisfy government and your customers showing you are willing and able to maintain minimum standards, which at the same time helps drive business through your doors. When you subscribe to the code you have access to a comprehensive marketing pack that can be downloaded from the subscriber area – all free of charge and easy to use. So in minutes you could be producing business-winning adverts and using eyecatching banners on your website. Also available to order are low-cost signs, banners, window clings and vehicle stickers from the code shop which, when displayed, clearly show you want to give the best possible levels of customer service to your customers – reinforcing the peace of mind that comes with using a code-subscribing garage. And there is much more on offer too. Those smart garages who are already reaping the benefits of tapping into the valuable resources available from Motor Codes are pleased they grabbed the opportunity early. For an annual subscription of £75, you will be hard-pushed to find a better value-for-money marketing package that at the same time clearly shows your commitment to consistently high levels of customer service. For more information see motorindustrycodes.co.uk

Survey will let RMIF fine-tune its support for the industry INDEPENDENT car dealers are being quizzed on all the key issues affecting them in business today. The RMIF has launched a new survey, to get an independent’s-eye view on everything that’s important. Issues up for discussion include:

• Business trends • Customer relations • Parts supply It’s the latest in the RMIF’s well-received series of sector-specific surveys, ensuring that all car dealers’ voices are heard. It’s going to run twice-yearly, to support the

RMI’s Independent Garage Association membership. ‘This survey will let us get an even clearer picture of the views of independent repairers,’ said RMIF director Sue Robinson. ‘As the survey goes through the years, we will be able to track changes, thereby fine-tuning our support of the industry.’

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

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

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

...in association with Vansunited.co.uk

cars LCVcult insight

VW adds to its network As Ford launches new Econetic version of its Transit, VW’s success sees outlets swell

olkswagen’s continued success has seen investment in the UK van dealer network swell. Greenhous Group has acquired the Volkswagen Van Centre in Shrewsbury, meaning the franchise now holds seven VW outlets. Greenhous’ Ray Coates said: ‘We are in a strong position to move the business forward, because of the relationships we have spent years growing with our retail and fleet customers, and we endeavor always to put customer service at the top of our list of priorities.’ A new VW-authorised repair outlet, Listers Van Service Centre, has also just opened in Stratford-Upon-Avon (pictured right). Listers has invested a lot in the new unit with more than £30k spent on new equipment, tools and training. It fills an open point between Listers VW Van Centres in Coventry and Warwick. Duncan Sands, head of operations at Volkswagen Commercial Vehicles, said: ‘We are very impressed with the continued confidence and investment in the Volkswagen Commercial Vehicles business by our Van Centres.’ Meanwhile, Broadway has clocked up 100,000 hits on its used van and truck website – in just six months. The stock locator has proven a resounding success since its launch, thanks to a bulging live feed from all Broadway’s seven sites. The video element of the used models in stock has been particularly popular, although all listings also contain hi-res images and a detailed

Greenhous’new VW van centre in Shrewsbury

‘We are in a strong position to move the business forward. We try to put customers at the top of our list of priorities’ history. ‘The website is very professional,’ said sales leader Ian Griffiths. ‘It is certainly helping us reach customers that we would not otherwise be able to access easily.’ It has proven a particular boon during the on-going motor industry downturn, adds Griffiths. ‘Certainly, the kind of high quality, three-year-old, one owner stock in which we specialise has been finding a market, often as a value-for-money alternative to a new vehicle. Having a high quality website that feels professional in use supports this buying process,’ added Griffiths. So what’s his secret to all these hits?

‘One of the factors that make a website successful is keeping visitors coming back, to see how our offers are changing – so we try to keep things as fresh as possible,’ he says. Ford Transit Econetic from £18,095 FORD’S fuel-efficient new Transit Econetic is to cost just £290 more than standard models. This is despite a real world fuel economy saving of 10 per cent! The new Transit averages 39.2mpg and emits 189g/km – seriously low figures. Ford van centres will be able to market these models easily to the growing number of companies with corporate environmental guidelines. What’s more, there’s even a version that meets the more severe Euro V emissions standards. This costs £750 more. Ford’s commercial vehicle director, Steve Kimber, said: ‘With this new Econetic version, we now have the best in class CO2.’ An Econetic version of the Fiesta Van will also go on sale later this year.

CarDealerMag.co.uk | 53

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Peering into the lives of the motor trade...

On The Spot Name: Simon Bailes Age: 56 Lives: Yarm, Stockton-on-Tees Any family? Three sons and a daughter What do you drive? I drive a variety of Peugeot vehicles to ensure I am always up-to-date on developments. At the moment I am driving the wonderful Peugeot 308CC GT100. What was your first job? Apprentice vehicle technician for the Martin Group. What was your first car? A red Mini with a black roof. Who do you work for now? Myself – I am managing director of Simon Bailes Peugeot. What does this involve? I manage three franchised dealerships in Northallerton, Stockton-on-Tees and Guisborough, along with an accident repair centre, also in Northallerton. I employ 120 staff and this year we are celebrating our 30th year in business. I am also a passionate supporter of many charity and community organisations across North Yorkshire and Teesside. What are your job’s biggest challenges? Obviously the current economy, but also the speed of change in the motor industry and the apparent game of chess that the global car manufacturers seem to be playing at the moment. Any downsides? No downsides, but frustrations – the image of the industry is a major one. How much do you earn? The other rewards of running a successful team – pleasing my customers and succeeding in business – compensate for not earning enough! Do you have an average day and how does it pan out? I wish I did – there is no such thing! My days vary so immensely but involve visiting my dealerships, being hands-on with customer relations and managing my team and sales. What newspapers/magazines do you read? I read a lot of trade publications and The Times on a Saturday and The Sunday Times. What is the most expensive thing you’ve ever bought? The business.

What’s your mobile phone ring tone? I’m not really a gadget person! It’s just a normal ringing tone. What was the first record you bought? It was either Leonard Cohen ‘Sisters of Mercy’ or Jim Reeves ‘Distant Dreams’. Favourite film and the last one you saw? Shawshank Redemption without a doubt. The last film I saw was a remake of Dr Zhivago. Favourite football team? I have a passionate belief in all of the North East teams as they do wonders for the regional economy.

Have you got any superstitions? I am a firm believer in the principles of Feng Shui. What is the biggest challenge car dealers face? The strength of the Euro, managing customers’ expectations and the game being played by car manufacturers. Number one tip for car dealers? Operate with a strict set of company values. And finally... what’s your motto in life and business? I believe you must have an intuitive understanding of what the customer needs, possess unrelenting determination and be 100 per cent committed to hard work and operating under pressure.

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

CarDealerMag.co.uk | 55

products 1. TomTom for iPhone

Price: £TBA Contact: iphone.tomtom.com SAT nav manufacturer TomTom has announced it will be putting its navigation on Apple’s iPhone. The software will be available as a download this summer from the app store and will turn the popular smart phone into a fully-fledged route guidance system. The system will work as an application that users will download from Apple, but there will also be an additional TomTom car kit. This will enhance the phone’s current GPS receiver as well as offer a secure dock, clear voice instructions and hands-free calling.

2. Nav-Mat

Price: £20 Contact: navmat.co.uk MEET the latest weapon in the fight against sat nav theft. Every time you stick your navigation unit to the windscreen you leave a telltale ring that lets criminals know there could be a black market best seller inside. The Nav-Mat has an anti-skid underside which stops it sliding around and a plastic centre piece which you can sucker your sat nav too instead of the glass.

3. Philips Maps

Price: £6.99 Contact: octopus-publishing.co.uk THE latest 2010 range of road atlases from Philips have mapping based on Ordance Survey information and have completely updated speed camera locations including speed limits. There are also some interesting articles including one on tips on avoiding a speeding fine, as well as lots of information on leisure activities and tourist destinations. There are seven atlas sizes available in the new range.

4. Portable Digital Television Price: £150 Contact: firebox.com THIS Portable Digital Television from Firebox uses DVB-T technology (digital video broadcasting), essentially Freeview, to pick up channels. The picture on the 4.3-inch screen is excellent, sound quality adequate and it is easy to use and set up. It has a built-in battery for power on the move and can also pick up FM radio, display digital pictures from the micro SD card slot, as well as play back MP3 tracks and MP4 videos.

5. Gerber Gift Set

Price: £20 Contact: completeoutdoors.co.uk INCLUDED in this metal gift pack is a carabiner complete with compass and temperature gauge – perfect for those Bear Grylls types! The Gerber Shortcut multi-tool has a pair of scissors/wire cutters contained within the body as well as drivers, a knife and bottle opener. It’s superbly made and perfect for those by-the-roadside repairs.

6. Touchless Car Cover

Price: £329 Contact: morethanpolish.com IT might look like a tent, but this smart piece of kit is effectively a mobile garage. The Touchless Car Cover is completely self-erecting and folds out of its own bag – which is small enough to store in the boot – ready to cover your car in seconds. It’s made from tough waterproof nylon fabric which is UV resistant, helping to eliminate paint fading. And the carbon-fibre frame is stitched into the seams so there are no exposed parts to scratch your car. It collapses easily too.

56 | CarDealerMag.co.uk

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accidents

...in association with Winn Solicitors

A tale of two drivers following a smash... The startling difference using an accident management firm is laid bare by drivers

ealerships prosper when their customers receive excellent service and help from their accident management company. If you implement effective accident management services your customers will benefit, be loyal to you and make active referrals. Here we highlight two examples – Mr A goes via his own insurance route, and Mr B uses a claims accident management service. Just check out the difference. Mr A HE informs his dealership that there has been a non-fault accident and they refer him to his insurers; non-fault settled knock for knock. Mr A’s vehicle is referred for a repair by a panel repairer who is instructed to fit non manufacturer’s panels and parts. When he comes to sell the vehicle it is likely to be worth less. He has to pay his excess on the repair and has to pay increased premiums as a result of loss of his no claims bonus and has a worse insurance record moving forward. Mr A doesn’t receive any reduction in value payment for the reduced value of the vehicle. He would like to buy a new vehicle to replace the accident damaged one, but he can’t do so because the accident, which was not his fault, has already cost him so much. It would have been good if he could have test drove a new model of his vehicle while his was being repaired. This isn’t covered by the insurer’s policy and no courtesy car was available from the panel repairer. He was injured too, and needed physiotherapy, but no-one advised him that he could have this privately covered by the insurer of the driver at fault and he struggles on in pain. Mr A completes the process unhappy. For an accident that wasn’t his fault he has suffered significant financial and personal loss and his dealership have done nothing to assist. Mr B LUCKILY for Mr B, he uses Winn’s accident management service, which is provided as a branded service by the dealership. He suffered a non-fault accident, but no claim is made on his insurance. It is claimed against the driver at fault. This means he has no excess

Looking after your customers after an accident could lead to another sale

‘Mr A completes the process unhappy. Mr B meanwhile likes his replacement car so much he thinks about trading his in for a new one.’ to pay and no increased premium. A replacement vehicle is provided during the period of repair and is a like-for-like branded vehicle. Mr B likes the new model and thinks he may trade in the old and buy the new when he returns to the dealership. The repairs are undertaken with full manufacturer’s panels and parts to a high standard and Mr B is happy an independent engineer undertook the assessment to ensure a full high quality repair. Even though the repair was top notch, the vehicle has reduced in value as a result of the accident (price is assessed on the basis of full disclosure of accident history). He then receives a diminution (reduction in value payment) of

£2,000 which had been claimed from the insurer of the driver at fault. He decides to use this as his deposit on a new vehicle. Mr B has suffered an injury and has a stiff neck causing him pain and making it difficult for him to concentrate at work. He was immediately referred for physiotherapy and the costs were paid for him and recovered from the other driver’s insurer. Having recovered from his injuries rapidly, received his compensation cheque for injury, received his reduction in value payment and had a good service from the dealership, he returns to buy a new vehicle. He doesn’t consider going to another dealership, given the excellent service he has had from his existing one. Mr A and Mr B meet and exchange details of their experiences at their respective dealerships. Mr A decides that the service from Mr B’s dealership is much better and that he will go there for his vehicles in future. Jeff Winn, managing director, Winn Assist

CarDealerMag.co.uk | 59

auctions

Supercar prices are rising It’s hard to believe, but BCA has evidence to show prices of supercars are on the up and demand is rocketing

upercars such as Ferraris and Porsches are once again rising in value, according to findings from BCA. Rocketing demand at auctions is leading to frenzied bidding for the exotic motors. This indicates that buyers are once again returning to the sector – and prices are sharply on the rise as a result. ‘Values for many cars in the prestige and performance sector have risen sharply against CAP Clean,’ confirms BCA – which has released some examples of this: • 2007 Bentley Continental GTC: £92,500 – £12,600 (15 per cent) above CAP Clean • 2007 Aston Martin DB9: £72,500 – £6,000 (11 per cent) above CAP Clean • 2008 BMW M5 Saloon: £49,000 – 117 per cent of CAP Clean • 2007 BMW M3 Convertible DCT: £47,800 – 115 per cent of CAP Clean The BCA Top Car sales are overseen by Car Dealer columnist Simon Henstock. He reminded us that, last year, values for such cars came under severe pressure. ‘It was widely believed the reduction in City bonuses affected demand earlier in 2009 – ironically, just as other used car sectors were recovering,’ he said. ‘However, interest has been building all year, and values have improved notably in recent weeks.’ Even so, car dealers shouldn’t start to get complacent. Despite an improved marketplace, selling such cars calls for a careful approach. ‘The key to remarketing high-value products is exposure in the appropriate media, to reach the right audience of buyers, combined with a dedicated marketing campaign to get the message across,’ added Henstock. Meanwhile, one UK dealer reckons the world of car auctions could be set for fundamental

‘Interest had been building all year and values have improved notably in recent weeks.’ change in the future. Motorpoint’s Auction4cars.com division suggests that the traditional days of selling through auctions ‘are numbered’. It believes that, instead of car dealers turning up to centralised auction halls, future buying activity will be conducted online. And it believes rivals will ‘increasingly follow this course of action over the coming weeks and months’.

James Faulkner, boss of the car auction division, said: ‘The response to Auction4cars. com in the past few months clearly demonstrates that the marketplace has been waiting for someone like us to come along and offer an alternative to the traditional auction houses. ‘The level of business we are doing shows there is a fundamental shift in the way people are buying vehicles. ‘As the popularity of fee-free online alternatives like Auction4cars.com continues to grow, so the traditional way of selling cars through auctions looks numbered.’ The site reveals it’s registered 1,100 buyers so far, and has clocked up 15,000 bids since its launch a few months ago. ‘We’re receiving around 35,000 hits per month,’ added Faulkner.

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60 | CarDealerMag.co.uk

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£35k £30k £50k £40k £40k £45k Neg £35k

Service Advisor Dealership Co-ordinator Workshop Controller Commercial Technicians Technicians Parts Person Warranty Controller

Niche, North London Service, Oxfordshire Outer London Central Scotland Bus, The Gulf Volume, Preston Volume, Preston

£32k £20k Neg Neg TAX FREE £18k £18k

Top car jobs call 01493 721119

TOP CAR RECRUITMENT

FOR ALL MOTOR TRADE STAFF AND POSITIONS THROUGHOUT THE UK – FROM VALETORS TO DEALER PRINCIPALS chris@topcarrecruitment.com or 07590 051011 | james@topcarrecruitment.com or 05602 398186 paula@topcarrecruitment.com or 07525 495348 | sarah@topcarrecruitment.com or 07793 411385

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allowing you to enhance your service, to your customers, using your brand. to fully understand the benefits contact us today. arrange an appointment with one of our experienced account managers to call and discuss the opportunity for the creation of your own brand accident management service.

phone 0845 058 8787 WS car dealer Ad New half page.indd 1 62 | 0462 CarDealerMag.co.uk

www.winnassist.com email | enquiries@winnassist.com 21/5/09 09:56:12

suppliers guide

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

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 Paragon Remarketing W: paragonremarketing.com E: Contact@Paragon Remarketing.com

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

FINANCE Bridford T: 0844 815 8888 W: Bridford.co.uk E: sales@bridford.co.uk Car Finance Company T: 0800 023 2440 W: thecarfinance company.co.uk E: Via website

W: mobil1.com E: Via website

ONLINE ADVERTISING Compucars T: 0845 667 6000 W: compucars.co.uk E: Via website Motors.co.uk T: 0845 265 5502 W: Motors.co.uk E: sales@motors.co.uk Really Good Domains T: 0161 482 7650 W: reallygooddomains.com E: sales@reallygood domains.com 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

subscribe. The professionals choice. Run by dealers for dealers. The original and the best. Call for your FREE two week trial.

approach to the learning experience helps increase both skills and profitability in these key business areas.

PROVENANCE CHECKS

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

TEXT SERVICES 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

SOFTWARE Dragon 2000 T: 0845 838 2000 W: Dragon2000.co.uk E: sales@dragon2000.co.uk

Online Trading

WinWin World T: 020 7538 6688 W: winwinworld.co.uk E: callmenow@winwin world.co.uk

Autotrade-mail.com T: 0870 2000 848 W: autotrade-mail.com E: sales@autotrademail.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

Rapport Training T: 007793 612401 W: rapporttraining.co.uk E: rapporttraining @fsmail.net Info: Specialising in car finance and insurance sales training for managers, owners and sales executives. Our realistic and interactive

TRAINING

breakdown lasting up to three years. Full training is given to ensure you add value to your profile and profits. A range of Products are available, including mechanical breakdown, GAP, tyre, Key and MOT insurance. We provide telemarketing, data services and dealer finance.

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

WARRANTY AA Warranty T: 08707 559 614 W: aawarranty.co.uk E: paul.hanna@ aawarranty.co.uk Info: AA Warranty offers peace of mind to customers, with comprehensive cover for mechanical and electrical

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! 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

Clements Car Credit T: 08444 142100 F: 08444 142200 W: clementscarcredit.com E: tony@clementscar credit.com Info: Motor finance broker for car dealers, prime and sub-prime. First Response T: 0115 946 6370 W: frfl.co.uk E: Via website

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

OILS Mobil 1

CarDealerMag.co.uk | 63

used cars HPI Valuations Top Ten Fiesta gets a run for its money

he current market is dominated by city cars and superminis. As perennial favourites among downsizers, the scrappage scheme boosted their desirability even further. Supermini volumes are high and although dominated by the retail sector, they are way up there on many user chooser lists in the fleet arena. There is an almost endless demand for clean, low mileage models in the used market. Traditional volume players – Fiesta, Corsa and Polo – have strong competition from the low volume offerings with styles to suit everyone, from sporty to basic frugal models. The price as new is a major factor in these tables. The striking new Fiesta has queues of buyers, but the cost means it’s potentially not the best buy. Meanwhile the sensibly priced Jazz combines a great reputation with good residuals. The Hyundai i20 is a bargain (if you can get hold of one). The sporty Ibiza and stylish Mazda 2 also look great value, while the cheaper Chevrolet Aveo comes top of the depreciation ranks. The average three-year 60,000 miles forecast for all cars is 31.2 per cent and the sector average is 31.7 per cent, so all of the top 10 are above average on both counts. Cars in this sector represent the best balance for practicality, economy and depreciation.

Running low Continued lack of quality stock maintains values says HPI’s Valuations Expert, Martin Keighley

here’s a scarcity of quality used cars in the wholesale and auction markets at the moment. And the used retail end of the market isn’t setting any new sales records either. This means that while dealers are still short of stock, used values are continuing to hold up. Normally, we would see used values fall during July and August, but this year is different, with values for July similar to last month. Unsurprisingly, cars in the shortest supply have seen further increases. New car registrations are low, with manufacturer self-registrations almost at a standstill. As a consequence, there is an extreme shortage of one to two-year-old stock, particularly small cars and superminis. If anything, this is likely to continue for the foreseeable future with late plate values remaining strong for some months to come. Some would argue that the UK scrappage scheme has taken business away from the nearly new market causing values to slip. However, the impact is unlikely to be significant as the waiting time for many small cars is increasing, due in the main to soaring demand elsewhere in Europe, on the back of their scrappage schemes. These changing market conditions have led to

Superminis Rank 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

...in association with HPI Valuations

Model

Models in range

Honda Jazz Hyundai i20 SEAT Ibiza Mazda 2 Mitsubishi Colt Suzuki Swift Volkswagen Polo Toyota Yaris Chevrolet Aveo Renault Clio/Ford Fiesta/ Kia Rio

8 9 19 14 10 8 32 24 6 32/40/12

£11,753 £9,967 £11,080 £10,710 £10,142 £9,869 £12,141 £11,821 £8,920 £13,133/£13,050/ £9,362

6 9 10 8 12 14 19 8 2 14

£8,920 £9,967 £10,142 £9,869 £9,362 £10,710 £11,080 £11,753 £9,650 £9,935

Chevrolet Aveo Hyundai i20 Mitsubishi Colt Suzuki Swift Kia Rio Mazda 2 SEAT Ibiza Honda Jazz Subaru Justy Daihatsu Sirion

64 | CarDealerMag.co.uk

a distinct shift in the buying and dealing habits of many traders. For example, those that used to deal in the sub £2,000 market have been forced to look elsewhere, mainly because of the scrappage scheme. These dealers are now turning to the more abundant higher mileage fleet cars. However, this hasn’t solved all their problems. For many retail buyers there is still a great stigma associated with high mileage models which poses a real challenge on the sales pitch for car dealers. Normally, the promise of a long, hot summer, would see demand for convertibles go through the roof. However, the current market could see consumers pour any spare cash into much-needed holidays, rather than a new set of wheels. Despite the tough economic climate, the industry is hopeful that its prospects may improve in the coming months and the steps it has already taken will provide the basis for a sustained recovery once growth returns. The UK motor industry remains of strategic importance to the economy and confidence of the UK and will play a key part in generating jobs and prosperity into the future.

Average new price

Average RV 36(60) £

Average RV 36(60) %

Monthly depreciation cost £

£4,938 £3,897 £4,324 £4,155 £3,888 £3,556 £4,325 £4,077 £2,867 £4,171/£4,147/£2,969

42.2 39.1 39.0 38.9 38.2 36.0 35.7 34.4 32.2 31.8/31.8/31.8

£189 £169 £188 £182 £174 £175 £217 £215 £168 £249/£247/£178

£2,867 £3,897 £3,888 £3,556 £2,969 £4,155 £4,324 £4,938 £2,813 £3,014

32.2 39.1 38.2 36.0 31.8 38.9 39.0 42.2 29.1 30.4

£168 £169 £174 £175 £178 £182 £188 £189 £190 £192

tail light

Sub-Prime Time I

’m a few years away from reaching 50, but I’m not concerned about passing the half-century milestone. I’m middle-aged and I accept it; Father Time has caught up with Mother Nature. Today, I’m pleased when I make it through a film without falling asleep. I take it for granted that there’s some good logical reason why my body is producing vast quantities of nose and ear hair, and I’ve noticed that I’ve started making a small grunting noise when I bend down. Such is life! I think being middle-aged can be an awkward time for some. You’ve achieved a level of success, are respected for who you are and what you’ve done, but now your body’s telling you to slow down a bit. A dangerous situation in my view and the older I get the harder I work at maintaining my personal motivation and my desire for challenge and job satisfaction. I believe that some people die between the ages of 40 and 50, but get buried around 75. I think it’s too easy to lose your motivation when you’re middle-aged especially when you’re the head of your company. You’ve got no boss to provide challenge or direction. So you have to continually create your own stimulation, forge your own direction, establish your own goals, challenge your own abilities, and push yourself beyond the limits of what you’ve previously achieved. I think that dealership owners can fall into this trap – like me they are probably ‘of a certain age’, they’ve been around a bit, done and seen lots, learned from mistakes and are at the top of their own tree – a dangerous place to be! It’s easy to fall into habits, allowing yourself to repeat the cycles and processes that you’ve used for the past few years. You’ve probably forgotten more than your staff have learned and you’ve probably stopped doing

Who is Don Brough?

some of the things which helped you achieve the success you enjoy today. I personally work hard not to fall into habits. I read lots and will re-read books on management technique and business strategy that I read 20 years ago, and I still get value from them today. I’ve searched out and registered with various internet sites that I find personally enriching and which provide a powerful stimulus to my daily reading, thinking and action planning. In short, I work hard at being interested in and stimulated by my job, my market, the people I engage with at work, and the potential opportunities that lie before us all. Of course everyone’s different and you have to create your own mechanisms which provide you with the stimulation and new ideas that challenge your current view of the world. If you’re a dealership owner of a certain age, ask yourself if you’ve learned something new today or in the last week. If you haven’t then ask yourself if you’re still getting job satisfaction, and if the answer is no, then do something about it.

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

CarDealer. Car

66 | CarDealerMag.co.uk

‘I think being middle-aged can be an awkward time for some. You’ve achieved a level of success, but now your body’s telling you to slow down.’

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

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

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

Deputy Editor Richard Aucock E: rich@blackballmedia.co.uk T: 023 9252 2434

Commercial Manager Duncan Chappell E: duncan@blackballmedia.co.uk T: 023 9252 2434

Contributors Chris Jervis, Mike Askew (not Big Mike!), Dave Timmis, Simon Evans, Will Baggott and Nathan Daniels Thanks to... Peter Davies,Tim Marlow, Tim Naylor, Linda Baggott and Bernard McGranaghan

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

0115 946 6370

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

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