Car Dealer Magazine: Issue 19 by Blackball Media

CarDealer. Issue 19 | October 2009 | CarDealerMag.co.uk | £3.50

[ SALES UP AGAIN! August new car registrations p81 ]

Driving the future of the motor trade

Mclaren mp4-12c

Inside story on 2009’s most wanted supercar The Tech + The Rivals + Ron’s view

Hyundai exclusive How carmaker won big with a gamble on scrappage

The lost profits How to make more cash out of every single car sale

+ WORLD EXCLUSIVE Interview

...with the man on the hunt for DEALERS to sell new McLaren CarDealerIss19.indd 1

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start Issue 19 | October 2009

WHEN things come together like they did for this issue, I thank my lucky stars. Our McLaren Special is more the result of luck than judgement – actually, scrap that, it’s the result of a huge dollop of luck the size only lottery winners get to experience. Ever since we reported on the McLaren Automotive road car project in Issue 15, I’ve been pestering the manufacturer for an interview with the man looking for dealers. I knew this was a ground-up project for the marque. Whereas before the McLaren partnership with Mercedes meant the dealer network was taken care of, this new road car – and Ron Dennis’ plans for a whole range of machines in the future – meant the brand needed a retail network of its own that stretched right across the globe. It’s a well-known fact that although he’s a genius, Ron Dennis is an absolute perfectionist. I remember reading a brilliant interview with him once in Car Magazine where I’m sure I remember he admitted spending tens of thousands of pounds more on the air conditioning system for the McLaren Performance Centre at Woking just because he wanted the ducting hidden away. This is a man with attention to detail levels that border on the obsessive compulsive – but it’s for this very reason his F1 team wins (usually) and his road cars are nothing short of legendary. You know that Dennis couldn’t possibly launch a car he didn’t just think was the best, he KNEW was the best. And

that’s why I’m so excited about the MP4-12C. Bearing all that in mind, I was fascinated to know what McLaren would want from its dealer network – as I’m sure you would be too. Would dealers have to serve coffee at 73oC precisely? Would grass have to be trimmed to 35mm exactly? Would invoices have to be printed on 250gsm silk paper only from renewable sources? Turns out, apparently not. Yes, there’ll be attention to detail in McLaren dealers and a car-buying experience like no other, but then with a car like the new MP4-12C to sell would you expect anything less? Our fascinating and frank exclusive interview with the man heading up the hunt for dealers across the globe is just part of our McLaren Special issue. It was because we had this interview in the bag that we were also given early access to the details of the first supercar from McLaren since the iconic F1. We got the full details and pictures of the stunning car an incredible 11 days before it was unveiled to the world on 9/9/9 (that date must have been planned by Dennis…). Keeping these details and pictures a secret has been the result of some very hard work indeed. This magazine printed on September 8, the day before the embargo was lifted so we had to make sure everyone involved in the writing, production and proofing of this month’s issue kept the details a secret. If the name of the car had slipped out I’m pretty sure I could have expected a visit from a smartly-dressed lawyer the very next day! Our inside story on the McLaren

MP4-12C, starts on page 24. I hope you enjoy it as much as we enjoyed putting it together. BAnG! AnD THE PLACES WERE GOnE WHAT started as an excuse for four blokes to get away for the weekend and pretend it was ‘work’ has now become a bit of a monster. We launched Bangers4BEN MKII in last month’s issue and have been inundated with requests for places. We filled the first 20 in days and had to add 10 more to cope with demand. At the time of writing they had all been pretty much been filled too and we had a reserve list growing by the day. If you didn’t manage to get a place this year, I’m really sorry, but hopefully you’ll enjoy finding out how we get on. And you could always lend us a hand – I could do with someone who’s a dab hand with the spanners to take a look at the car we’ve got our eye on! We’ll be reporting on the event in coming issues as well as regularly on our website CarDealerMag.co.uk. If teams can double their original stakes like we did back in February we’re on course to raise a hefty chunk of cash for BEN, which would be utterly superb. Find out who’s signed up on page 11. Happy selling…

James Baggott, Editor

‘McLaren’s philosophy from the outset was to build a supercar that wouldn’t just be an also-ran, but the best.’ McLaren MP4-12C Inside Story, p24

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SELL MORE CARS (and don’t just take our word for it)

Since joining we have had a vast number of genuine car leasing leads that we have been able to convert into sales. We intend to continue with this form of advertising as it would be very foolish not to! West Way Nissan

We have been using Really Good Domains for all our advertising for many years now and have never needed to go elsewhere. March alone we converted 44 vehicles from advertising on the website. Fleet Prices

We have advertised on ContractHireAndLeasing.com, including utilising a free personalised website, for 3 months and the beneﬁts are fantastic. The personalised website has saved an enormous amount of administration time enabling us to concentrate on just handling the numerous enquiries generated. UK Audi Contract Hire

Gear up for the September number plate change

Serving the contract hire & leasing industry for nine years Phone 0161 482 7650 for your reduced rate three-month trial and get selling more cars reallygooddomains “Number 1 in Marketing for Motoring...” sales@reallygooddomains.com

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ignition Issue 19 | October 2009

‘This thing flies whenever you want it to, no matter what gear. Performance is staggering, yet also extremely cultured and manageable. We know that’s hard to believe!’

Range Rover Sport, p40

dashboard 06

Ewards: Closer Look We take a look at one of this month’s Ewards 09 entries

Share Watch

Half-year reports ‘bullish’

Bangers4BEN MkII

24 34

Who’s signed up for our rally?

Why UK boss is looking at cuts

Hyundai dealer cull

14 16 18 20 23

forecourt

Lexus tops poll Button’s Bugatti Scrap’s downfall Frankfurt preview Big Mike

44 46

McLaren MP4-12C

Inside story on incredible car; plus Ron Dennis’ view

The hunt for dealers

McLaren man answers our questions in an exclusive interview

Range Rover Sport Few tweaks, incredible car...

Cult Car: Bentley Arnage Fiat 500 C

Meet baby Fiat with a waiting list

Sales Legend: Nissan Micra

features 48

Hyundai exclusive

52 54 57 63 65 67 69 71 73 74 80

Dealer-Auction.com Leasing the key? Upselling special Right Click Dot Com NEW! Warranties LCV Insight Servicing On the Spot Auctions HPI Valuations

The scrap gamble that paid off

Reach more buyers

...sell more cars

with classified listings that reach 2million web visitors per month on great websites such as www.carpages.co.uk and www.channel4.com/4car with Smart Banners on the web that include your actual cars for sale on Banners and Skyscrapers

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Car Dealer Ewards 09 Entry: DCAutomobiles.co.uk Latest Ewards entry shows the high calibre vying for gongs

ou don’t have to be a franchised main dealer to have a smart website to enter into the Car Dealer Ewards 09 in association with autotorq.com. DC Automobiles is an independent dealer based in Banstead, surrey, that knows the importance the internet can have on a business. Lorraine Angell, from DC Automobiles, explained they had been trading for the past 15 years but recently realised they needed to refresh their web presence. ‘In the last couple of years we have researched the need to modernise our website and have put all our advertising budget into our website,’ explained Angell. ‘We approached G-Forces and together have built a website that is our window to allow customers to see anything and everything about each individual car that we have. ‘All information is provided with a CAP look-up and each car has seven digital photos. We feel we are ahead of our competition.’ Clive Jackson, founder of the Car Dealer Ewards 09 headline sponsor Autotorq.com, was impressed with DCautomobiles.co.uk. ‘It’s a clean website that made it quick and easy for me to locate a used car and get examples of finance available,’ said Jackson. ‘I liked the ability to register for stock updates by email and I am an advocate of the live chat facility when switched on and operated. And it makes good use of photography for used cars.’ It was the clean design that impressed our other judges too. Motoring.co.uk’s Chris Green said he was impressed with the ‘modern and fresh’ approach and navigation that helps lock the user into the site. ‘I especially like the vehicle information which

How to enter

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.

is clear and informative with impressive picture display,’ explained Green. ‘I like the live chat element too which gives a friendly approach to the consumer but giving a good call to action at the same time. And the save your fave cars is a nice touch normally only found on large advertising sites.’ The G-Forces-designed site obviously hits the

spot with those two judges! so far we’ve been inundated with entries to the Ewards, but time is running out to get yours in. Entering only takes a few minutes and there are categories for Franchised, Independent, Car supermarket and Web Innovations. Details are in the panel above. We also sent the DC Automobiles entry to Black Horse Motor Finance managing director Chris sutton to take a look. He said: ‘DC Automobiles’ site is a good example of the type I’m looking for. The design is clean and crisp, with a modern feel and interface. It’s hugely functional and easy to navigate, and is free of the excessive design and content which some sites display.’ And shaun Armstrong, boss of Visit Cars, was equally full of praise, even going as far as saying it was ‘the best independent dealer site’

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

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in association with autotorq.com Google

Blog

Common sense SEO Marketing

Jackson

Web 2.0

P he’d ever seen. ‘When you first land on the homepage of DC Automobiles, it looks plain and not particularly memorable, until you scan it,’ he said. ‘But this has got to be one of the best independent dealer sites we have seen. The user journey has literally been covered from every angle down to even comparing cars in your own favourites section. ‘The call to action used throughout this site is the prominent driver, and any questions we had about the company or any car listed was easy to find and clear to read. We love to see sites that have been truly built with the user in mind.’ Impressive stuff indeed, but there’s still time to get your site in front of our panel of expert judges. so make sure you get your entry in soon. To see more on our Ewards, from this year and last, visit CarDealerMag.co.uk.

Straight Talk

reviously I’ve said that having a great-looking website is not enough – it’s what you do with it that counts. This month I’ll cut through the hype of search marketing and explain how it can drive visitors to your website – done well it can significantly increase both leads and sales. Search marketing is highly targeted, measurable and cost-effective. Your website is available 24/7 and by positioning your online brand carefully you will attract qualified customers – get it wrong and customers will choose your competitors instead! Search Engine Optimisation (SEO) is a vital part of the digital toolkit. Although 80 per cent of customers start their search on Google, very few look beyond the first results page. It’s imperative to get your website high up the rankings, otherwise up to 90 per cent of clicks will go straight to your competitors. Despite all the hype, SEO is effectively about trying to match the content of your website with the search terms potential customers type into Google. It can be very effective and you don’t pay to appear in the results from a natural search. However, to get it right, you have to think like a buyer not a dealer. Pay-per-click advertising (PPC) builds on SEO and

‘Search marketing is targeted, measurable and cost-effective, but don’t get it wrong.’ guarantees your website appears on the results page of searches. The main advantage is its highly measurable ROI – you only pay for what you get, and the advertising is highly targeted and relevant. The downside is the cost can be unlimited and it’s no substitute for good SEO. Social Media Optimisation (SMO) is a recent phenomenon which uses the plethora of ‘social networks’ to drive traffic to your website. Create a Facebook fan page for your dealership with links to your website, or a channel on YouTube. Twitter is a great platform for stock alerts – send a ‘tweet’ when a new vehicle arrives in stock, and encourage your website visitors to follow you. It’s free and easy to use but can be hugely time consuming! If you only do one thing this month, freshen up the words and offers on your homepage to improve your search engine ranking.

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.

Shaun Armstrong

Chris Green

Chris Sutton

Keith Rountree

Rob Queen

Visit Cars MD

Motoring.co.uk Sales director

Black Horse Motor Finance, MD

BCA, Group marketing manager

Compucars, 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

0845 667 6000, compucars.co.uk

‘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 follow through 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.’

‘My key focus will be on two distinct areas. The first will be how efficiently does your website promote your used car stock? Are they prominent, well described and easily seen? My second area of focus is how well you use your website for upselling value added products and services, capturing customer details and using your web technology to create longterm partnerships with your customers.’

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dashboard General manager Bradley quits Honda

HONDA Cars general manager Bernard Bradley is leaving Honda UK to take up a new role in the Middle East. The familiar face to Honda’s UK car dealer network is off to pursue ‘new opportunities’. His short-term replacement will be head of marketing Tom Gardner, who’ll combine the two roles until a successor for Bradley is found. ‘Leaving Honda has been an extremely difficult decision to make,’ said Bradley. ‘I’ve enjoyed the challenge of strengthening Honda’s relationship with its dealer network, and the opportunity to work with a number of very talented people.’ Stay up to date every day at CarDealerMag.co.uk

Autotrade-mail sold for rumoured £12m TRADING website Autotrade-mail.com has been acquired by 2nd Byte for a rumoured £12m. The website – started nine years ago by Marcus Kelland (pictured) – has sold to the website design firm, which is ultimately owned by Trader Media Group. Autotrade-mail’s 4,500 dealer members across the UK buy and sell cars in a trade-only environment in real time. Former car dealer Kelland will stay on as part of the agreement until December, when he’ll take a wellearned break in Australia. Current director Kevin Watson will stay on indefinitely as operations director. Although Watson would not comment on the sale price, he said the firm was certainly ‘worth it’. ‘It is true we have been acquired by 2nd Byte, part of the Trader Media Group,’ Watson told Car Dealer. ‘We’re now part of one of Europe’s largest media companies and can enjoy all the benefits that go with it. ‘This is great news for our current members as it gives us access to thousands of 2nd Byte’s customers and all

Online trading site is snapped up by Trader Media Group in multi-million deal, reports James Baggott the cars they bring with it. ‘We’re a small, but passionate team here and that will not change. Marcus has done a tremendous job over the last nine years and will be enjoying a well-earned rest in Oz when he leaves us in December.’ Watson said he believed the acquisition by 2nd Byte formed a superb ‘marriage’ and wanted to highlight the fact nothing would change for existing customers. The deal went through in June. Andy Whitehair, managing director of 2nd Byte, added: ‘With the current shortage of quality used stock in the market, dealers are looking at new avenues to help source cars for their forecourts. Autotrade-mail.com is a great product with a well-deserved reputation in the industry. ‘The business will continue to be run on a standalone basis by the existing management team.’

Share watch

Dealer trading updates ‘bullish’ Half-year profit announcements reflect sector improvements

ecent weeks have seen the UK’s listed motor retailers release their results for the first six months of 2009. Despite mainly reporting reduced profits compared to the first half of 2008, statements were bullish and reflected significant improvements over the last six months of 2008 despite continued difficult trading conditions. The themes running through all of the statements were remarkably consistent, commenting that the companies had taken difficult decisions to close dealerships and reduce costs in response to the challenging retail environment in 2008 and were well placed to prosper for the remainder of 2009 and into the future as the economy continues to recover. Pendragon reported a 36 per cent drop in revenue and a 46 per cent drop in profit before tax compared to the year before. In addition to the challenges arising from the continued recession, Pendragon

‘The next significant swing for stock prices may depend on whether the government chooses to extend scrappage.’ reported that its results had been impacted by the financing discussions undertaken in the first half of the year, with used car volumes suffering as a result of constraints on the company’s ability to fund higher levels of used vehicle stock. Lookers reported a 16 per cent drop in revenue and a 34 per cent drop in profit before tax. However, the profit figures were significantly impacted by the costs of arranging new banking facilities and closing dealerships. Inchcape reported a 23 per cent drop in revenue and a 64 per cent drop in profit before tax, albeit with performance improvements in Singapore, Australia and the UK during 2009. Caffyns delivered a positive trading update for the first quarter of its current financial year at the company’s AGM. However, the company is having

to respond to some continued minority shareholder criticism of performance, capital structure and strategy. Following what must have been a lively meeting, one of the minority shareholders is threatening a ‘Derivative Action’ against the Caffyns directors claiming ‘woeful acts’ of omission. Share prices across the sector have continued to strengthen slightly in light of the positive news detailed in the interim statements and in reaction to increased stability in the sector and optimism on used vehicles. The next significant swing for the stock prices may depend on whether the government chooses to extend the scrappage scheme beyond current funding levels. The scheme has been credited with underpinning the recent improvements in new vehicle sales performance and, based on current run rates, financing could run out well before the end of the year. This has benefited the groups with a volume rather than premium focus and the ending of the scheme could result in a further reduction in new vehicle retail sales.

Mike Jones, ASE director

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dashboard

Bangers4BEN2 is runaway success! Places for our fundraising rally for BEN are all but sold out in a matter of days Bangers4BEN MKII – our mad-cap trip up and down the country in £250 bangers to raise money – has been so popular it sold out in three days! We originally had 20 places for two-man teams from across the motor industry, but soon realised demand meant we could fill more. ‘I’ve never known an event to sell out this fast,’ explained Kelly Neal, head of events for BEN. ‘It’s amazing. We’re all so excited about this.’ After the first 20 places sold out, BEN and Car Dealer worked furiously to get more teams involved. After ringing around a number of hotels, we managed to add another 10 places – and these are nearly filled too! What’s more we’re still getting enquiries and have five teams on a reserve list. Hotel restrictions, and the fact there are laws on the number of cars you can have on the road in a convoy at any one time, meant we closed the book at 30 places. Bangers4BEN MKII will see teams drive from BEN’s Ascot HQ to Inverness on day one in cars that can cost no more than £250. Day two will be from Inverness to John O’Groats and back down to Berwick-upon-Tweed where we’ll visit one of the charity’s residential centres and set off some real bangers! And then on day three teams will head to Brands Hatch for a few celebratory laps. All the cars will be entered into a BCA auction and sold for as much money as possible with the entire proceeds going to BEN.

Who’s signed up? Car Dealer Magazine BEN Ben Greig Motors Cima Racing UsedCarExpert.com Shine! Take the weekend off... (two teams) Sandwell Garages (Vauxhall) Really Good Domains Farnborough Car Sales Warranty Management Services Autotorq.com Toyota (GB) PLC Hyundai Motor UK Ltd Bluecycle (two teams) Inchcape Toyota Guildford Pentagon Toyota Marshall Motor Group (five teams) GRS G-Forces Web Management Motoring.co.uk Honda UK (two teams) At the time we went to press there was one place left on the Bangers4BEN MkII rally. If you’re interested call Laura Redman at BEN on 01344 294714. ‘If we all double our money on the cars we buy – as we did when Car Dealer did it back in February – then we should raise £15,000,’ explained James Baggott. ‘We’ve said that the invoices for the cars have to show that entrants spent no more than £250 on their banger. But if they want to spend more and write it down to £250 we don’t care, because at the end of the day it’ll mean they’ll sell for more and raise more cash for BEN. And that’s our ultimate goal! B4B MKII takes place in November.

Peugeot confirm RCZ for production PEUGEOT has released images of the production RCZ – maybe its most dramatic car ever! The racy coupe is so groundbreaking for Peugeot, it’s even dispensed with its numbered naming convention: the RCZ concept car name will make it to production. What’s more, it will be in UK Peugeot dealers from spring 2010! Impressively, Peugeot has carried through the concept’s double-bubble roof, which conceals a 2+2 cabin layout. This gives it extremely dramatic lines, that the maker has ensured remain uncluttered by developing a pop-up rear spoiler. Low volume production will be conducted at the Magna plant

in Austria, on behalf of Peugeot. This will ensure supplies are limited: could it also be the lowest-depreciating Peugeot ever? Mechanically, it draws from the 308, and will feature a range of 1.6-litre turbo petrol engines. The top unit will produce 200bhp!

Burgess Just checking Keeping track of customers can be a tricky task!

marketing guru recently said that ‘knowledge is only power if squeaky clean’. To me, this means that customer data is our most valuable asset, but only if regularly cleansed. Most of us are good at getting customers, but less skilled at keeping hold of them. The aim of the game is to be good at both. Data cleansing can not only help us achieve this, but will keep us in line with marketing legislation, reduce direct mail costs and enhance customer relations. Back in the days of plenty, it was common business practice to prioritise finding new customers over holding on to existing ones, but the recession has put paid to this. Not that we ‘In my day, should neglect targeting customer details new business, but in the were scribbled short term we should focus on saving money by down on the back keeping customers rather of a fag packet. than spending to coax new ones to buy. However, Those days are making sure customer data now long gone.’ is in top-notch condition remains a challenge. Investing in data quality at all times is vital, especially when times are tough. I appreciate that the last thing you want to hear in the current market is ‘investment’, but improving data quality shouldn’t be seen as a cost, but as a necessity. Let’s face it, customers are always on the move. From changes in lifestyles to house moves – they’re a difficult bunch to keep track of. In my dealer days, customer information was written on the back of a fag packet before being scribbled in a file and stored somewhere to gather dust. Thankfully those days are gone and we’ve seen a number of our customers reporting profit increases as a result of taking data cleansing seriously. Whether it’s highlighting duplicate customer records, flagging change of keeper or scrapped vehicles, or providing new postal or email addresses and telephone numbers when customers move, it all adds up to a huge cost saving on mailing campaigns. You can target the right customers at the right time and personalise campaigns. Those keeping ahead of the game are data cleansing to create both real-time and offline marketing campaigns that act as interactive dialogues with the personal touch, rather than irrelevant, over-frequent product pushes. I know which one I’d rather receive. To find out more about HPI data cleansing please contact 0845 301 1812.

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

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Hyundai boss takes axe to his network Scrappage scheme success has led UK chief to have serious chats with dealers HYUNDAI UK boss Tony Whitehorn has revealed a big dealer cull is on the cards. On the back of the marque’s scrappage success, the MD has taken the opportunity to look closely at his network. In an exclusive interview with Car Dealer Magazine, he revealed that Hyundai is set to cut its network by up to 15 per cent. ‘We have taken our scrappage success as an opportunity to go to our existing dealers and say to them what we expect, and ask them if they can meet our needs,’ said Whitehorn. ‘Some have said they can’t, so we’ve said to them we need to start talking about the future. We have had some very hard conversations, because all of a sudden we have had a step-change for this franchise. ‘We have high profile dealer groups that want to come into the franchise, and we are using scrappage as an opportunity to raise the professionalism of our franchise. ‘This has meant we will be parting company with some of our dealers.’ Whitehorn said 10 to 15 per cent of his 140 dealers will be losing their franchise with the manufacturer, but there are plans to replace them. ‘We will be looking to take the network up to about 150 dealers, as we think that’s the right level,’ added Whitehorn. ‘Some of the dealers we are parting company with won’t be replaced in certain areas

Dealer’s 700 vacancies AN impressive 700 new jobs have been created by car dealer giant Arnold Clark. These include an incredible 500 sales executive posts – with the group wanting the posts filled by February. The firm told the Press Association that this was due to market stabilisation, inspired by the scrappage scheme. Sir Arnold Clark, chairman and chief executive, said: ‘With the global economy going through such a difficult period, our announcement can only be seen as a positive step in helping to combat unemployment.’ The 145-strong car dealer group is looking for recruits in sales, modern apprenticeships and car dealer support services. The posts are being created across England and Scotland, too. And what are the criteria? ‘Self-motivated individuals who are ready for a new and exciting challenge,’ says Arnold Clark. ‘No experience is necessary as all employees will undergo extensive training.’

Tew Net gains – we’re really seeing this as an opportunity to reconfigure our network.’ The Hyundai chief added that the quality of dealers wanting to be part of his network has improved dramatically, and there are around 10 new appointments set to be announced soon. ‘We sit well alongside established brands as part of multi-franchise sites,’ added Whitehorn. ‘We’re talking to a lot of people at the moment that have got the

10-15%

Percentage of dealers facing the axe from Hyundai

Renault franchise. ‘Their market share is declining and because of that they have big facilities, so dealers are wanting to fill that. ‘We work well with Chrysler and Saab too. Established brands that are suffering a little bit in terms of market share. Even some big Ford facilities.’

Full interview with Hyundai chief, p48

MINI’s electric car trials MINI is offering 20 UK motorists the opportunity to lease an electric MINI for a test run. The six-month leases are by application-only, from a special section on the firm’s website. Taking part in the trial costs just £330 per month as BMW has been able to offset the normal £550 cost thanks to a grant. All cars will be tracked so usage can be assessed.

Give visitors a reason to get stuck into your website

ne thing I always like to talk about with clients is making websites ‘sticky’. By this, I don’t mean sickly-sweet, but the sort of site that customers just can’t leave. Once they’re in, such sites have so many tools and features people don’t feel the need to move on. For website developers achieving this is manna from heaven. For you, it’s equally good. Why? Because all the time they’re with you, they’re not looking at your rivals… We’ve therefore developed a lot of tools to encourage this, which car dealers are increasingly seeing the benefits of. Take Marshall Motor Group. They’ve recently added our car loan and motor insurance quotation tools to their new website. These tools mean any web ‘Challenge your visitor can, for example, build a personal finance web developer quotation, no matter if their with making preference is for HP, PCP or your website lease purchase. How can we do this? Well, more sticky we integrate the finance and and see what insurance calculators into they come Marshall’s own used stock pages – meaning results are up with.’ shown right away, rather than having to be calculated separately. This speed is a key part of the tool’s appeal. It means buyers can search through used car stock and instantly see how much it would cost them to finance, and how much they’d pay for insurance. We also help here by validating every enquiry on each individual car before it is processed. So, if a car is too old to be eligible for PCP, or has covered too many miles, figures will not be returned. But, where they ARE returned, the customer can be safe in the knowledge that those quotes are ‘real’. At the end, customers can either apply for finance through a secure server, or drop Marshall a line asking for further information. As their data will already be there, the salesman on the other end will have lots of information on that customer, helping them form the deal in their head before they call. Marshall also have the ability to hone things, too. They can use finance rate and APR controls, or even a monetary amount modifier, to adapt the sell-out price of the finance offer – on a car-by-car basis. And once it’s set up their end, it’s fully automatic. So, challenge your own web developer with making your site more sticky, and see what they come up with. You only need to worry if what they come back with resembles a sweet shop…

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

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Lexus top of the satisfaction polls Henstock Auction stations Scrap scheme is changing the face of our industry

ith the undoubted success of the scrappage scheme generating increased numbers of new car sales for the first time in 15 months, and average used car values continuing to rise for the ninth month running according to BCA’s own figures, the recovery is looking even stronger in the car market. However, commentators are now suggesting that the turmoil of the past 18 months is likely to shape the car market for years to come. Many new car buyers – tempted by the scrappage scheme – have opted for smaller or base model cars to limit the cost even further. Many fleet operators have also extended the period their cars remain on fleet – which means they are buying fewer high-specification manage- ‘Maybe some ment and executive cars. buyers have The key issue is that looked at the smaller numbers of new cars have been sold, which return on their means fewer used cars to savings and choose from in the future. decided to buy We are also changing the mix of cars available by a prestige car choosing a greater number instead?’ of small new cars and fewer bigger cars. In fact the available ‘pool’ of used cars is shrinking because we are scrapping more cars than are being sold new. All these changes will combine to impact the stock mix and value in the used car arena. With continued demand from motorists for ‘value for money motoring’, this is likely to intensify pressure and competition for certain types of used cars for the foreseeable future. Already this year at BCA we have seen prices for used prestige, 4x4s, and executive cars rise sharply, despite the country still being in the throes of a recession. These are the cars that just a year ago some dealers considered too risky to take in part-exchange, let alone stock. Lack of supply is certainly a factor as some financial liquidity flows back into the marketplace and demand has been growing as potential buyers have switched out of prestige new and into prestige used, for example. When money is tight and many motorists are concerned about running costs and fuel economy, you would not expect bigger-engined executive and luxury cars to do so well, but prices have rallied strongly after falling heavily last year. Maybe some buyers have looked at the return on their savings and decided they’d rather have a prestige car instead – and who could blame them?

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.

WHICH? Car’s annual dealer satisfaction survey has rated Lexus top of the class for the fifth year running. The consumer body says Lexus dealers are virtually untouchable, both in sales and servicing. Indeed, one customer reported that ‘even the coffee was great’. But equally praised was Daihatsu in second place; showing, said Which? Car, ‘that size isn’t everything’. Honda was a reliable third, fittingly its cars top the reliability tables. And the last-place brands for sales and service? Well, it’s bad news for Chrysler, Jeep and Fiat car dealers… The survey doesn’t just rate owner satisfaction,

But not every car maker is happy with Which? surveys though. It also looks at prices too. Which? Car editor Richard Headland said: ‘After a house, a car’s the next biggest purchase you’re likely to make in your lifetime, so you’ve a right to expect a high level of service. ‘Lexus works hard to give its customers what they want, and staff go out of their way to be helpful. If they can do it, there’s no reason why other brands can’t follow suit.’

Audi hits back at Which? claims A5 is ‘unreliable’ SOME manufacturers have hit out at consumer group Which?’s findings. Following our story in last month’s issue on a separate survey by the organisation that claimed the A5 was the ‘UK’s most unreliable car’, Audi has decided to hit back. The manufacturer dismissed the survey saying it has so far sold more than 8,000 A5s in the UK – and the reliability score Which? gave for the car equated to a total of just SEVEN faults.

‘We do not acknowledge the Which? findings as valid indicators of the level of A5 reliability,’ a spokesman for the firm told Car Dealer. The very small sample size means the data is ‘simply misleading’. ‘We believe that sample sizes of below 500 cars do not generate useful or workable data,’ he added. ‘Audi is world renowned for building extremely high quality cars, and in the vast majority of cases, very strong reliability scores reflect this.’

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enough space to display 50 used cars. There is even a huge bike rack on the site, too. In an innovative policy, Gravells Kia is providing courtesy bicycles for customers to ride into the nearby town, Narberth. ‘As a group, we are investing more than £5m in the development of our sites,’ said chairman David Gravell.

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GRAVELLS Kia has opened the doors to its futuristic new £2m Pembrokeshire site. Manufacturer standards have dictated the design, which will also house a Renault franchise – Gravells is actually the UK’s oldest Renault car dealer. It consists of an eight-car showroom and a six-bay workshop, and is surrounded by

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YourCarLoan

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

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Dealer gets to sell Jenson’s Veyron!

Rapp Marketing Why it’s so important to keep track of what was said...

ommunication. It’s so easy to get wrong, isn’t it? You spend plenty on advertising and marketing, taking great care to craft words and images to send just the right messages about your business. But all it takes is a simple misunderstanding to scrub your advantage back to zero. Suddenly, a sale that you thought was in the bag is most definitely off. The customer is angry, thinking that you’ve said one thing and done another. Meanwhile, you’re puzzled, perhaps not knowing quite where it all went wrong. Why does it happen? Simple. Selling a car can be, as we know, pretty involved. There’s the vehicle, the part-exchange, preparation, finance, a part-ex, an agreed delivery date and insurance. That’s a lot to take in. And there’s a fair few opportunities to go ‘off-message’ along the way. We understand how badly poor communication can hold you back. So that’s why Motors.co.uk offers its dealers voiceSafe. This, put simply, is a system which allows any dealer to listen to every call that comes into – or is made from – your business. And when our research shows that 27 per cent of all sales begin with a buyer ringing you, that matters. The benefits are huge. You can listen back to a call to check exactly what has been said – and agreed. This can be vital in ensuring that sales happen as they should. No matter how many calls you make or take, it will all be there. All for £199 to set up, and £199 a month thereafter. We think that the peace of mind that’s there is terrific – there’s nothing better than to check back – easily – on exactly what was said. If you’ve made a mistake, you’ll spot it early and there’s the chance to nip in and put things right. And if your customer changes his or her tune, it’s much easier to gently put them back on song by reminding them just how the conversation went. Listening back to a call can be a real ear-opener, particularly if at least one of the voices is your own. It’ll give an insight as never before into how you present yourself, how welcoming you sound and how slickly you present the sale. It’ll also point up quickly where and how improvements can be made. Try it. We think that you’ll like it. For more information call Alistair Farrow on 0845 265 5502.

CAR broker steve Hurn has taken in Jenson Button’s Bugatti Veyron 16.4 – and has it up for sale at £899,995. The suffolk dealer has been in contact with the F1 World Championship leader for some time now. A need to manage his ﬂeet of cars is cited as the reason for the sale – Button simply has too many! Currently the F1 star has a Ferrari Enzo and 550, TWO McLaren F1s, Audi Rs6, BMW M5, Mercedes C63 AMG, s600 and CLK DTM, several classic Minis, and a smart (amongst others)! However, the 1,500-mile Bugatti – similar to the one pictured, but in black – is a two-owner car, with Button covering all that distance. The first owner bought the 2008 model, but never drove it. Button acquired it a year ago and is willing to authenticate it – either with a signed document or a photograph next to the car. ‘I’ve sold several of Jenson’s cars,’ Hurn told Car Dealer. ‘But this is the first time we’ve been able to publicise it.

Car Dealer chats to the man selling F1 star’s Bugatti ‘Previously, there have been conﬂicting manufacturer issues, due to him driving for Honda. That’s not an issue now he’s in a private team.’ Hurn has much experience of the premium market, borne through a decade at Lancaster Colchester, retailing high-end Ferraris. ‘I’ve been broking cars for several years now, but the Ferrari world is a small one, where everyone knows each other. People remember me – I think, because of my unusual name.’ Hurn says he already has four ‘serious’ people interested in the Bugatti, and doesn’t expect it to hang around for long. We checked whether he still had it available at the time of going to press. Hurn confirmed he did with much of the interest so far coming from ‘timewasters’! RICHARD AUCOCK

‘Our research shows that 27 per cent of all sales begin with a buyer ringing you.’

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

Hi Dave (A personal headline for ‘most’ of you) IS your name Dave? If not, chances are you probably know someone called that. A survey has found it is the most popular bloke’s name in the motor trade, beating Paul and Mark for top slot. Contracthireandleasing.com discovered this random fact, to prove the theory that ‘everyone knows a Dave’. How fitting, then, that Dave is the name of

the boss of contracthireandleasing.com’s parent company, Really Good Domains. ‘It is something that I have long suspected was the case,’ said Dave Timmis. ‘Our research just goes to show that being called Dave gives you a helping hand in the motoring world!’ As for girls’ names, it was Sarah, Emma and Karen taking the top three slots.

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Hunter More revenue Are you maximising revenue in the car leasing arena?

he car leasing market is continually growing as more and more people become aware of the process and understand that, for those of us who like to have a new car every two or three years, it is without doubt the most cost-effective way. Feedback suggests customers prefer to lease directly through franchised main dealerships as this gives peace of mind and a quality after-sales service. While many dealerships are using contract hire to drive sales there are many that keep it on the back burner. Have you sat back and considered the extra revenue that could be generated on your site by pushing contract hire sales? In today’s world, it is a fact that the majority of both business and personal users access the internet as their first port of call to obtain the information on what they are looking for. Internet visibility will, most definitely, be key to generating sales within the up-and-coming generation and dealerships need to take the relevant steps now to make sure they gain both a local and nationwide audience. Whoever said that you can only sell on your doorstep? In the current climate obtaining a strong internet presence is difficult and can be costly to optimise and manage. This is where we can help at Compare Click Call. Our website LeaseCarsDirect.co.uk delivers leading results in all of the top search terms relevant to the industry and our customers are buyers who are in the market to purchase. We all want to make as much money from each sale as we can to ensure profitability, so our team will work alongside yours to supply the best prices available by using our finance systems. We encourage upsell and cross selling, allowing you to increase your profits and in a lot of cases this ‘seals the deal’ on the basis that the customer feels they are getting more car for their money. If you would like to join our team or you would like an information pack sent out, please get in contact either by calling 0845 1700 888 or email sales@compareclickcall.co.uk. LeaseCarsDirect: The Detail, page 54

‘Have you sat back and considered the extra revenue available from contract hire sales?’

Who is Gary Hunter? Gary is product development manager for CompareClickCall.co.uk. For details of what his company can offer you contact 0845 1700 888

Success of scrap scheme blamed for used car crash Biggest decline in a decade is all down to the popularity of scrappage, explains Experian sCRAPPAGE is being blamed for the biggest decline in used car sales since the start of the decade. sales fell by 6.6 per cent in Q2 – an unprecedented fall, says Experian, even after further declines in Q1. Between January and March, sales fell by 1.1 per cent. That really does make the further declines between April and June all the more extraordinary. Experian is blaming scrappage because of the declines in key sectors. Used mini cars were down a huge 12.4 per cent, for example. simply because buyers have been choosing new instead of used. ‘The fortunes of the new and used car sectors are very much linked,’ said Experian boss Mark Nuttall. ‘The scrappage scheme has had an impact on the industry as a whole.’ There were positives, though. ‘Although focus on small cars shifted from used to new, the scrappage scheme has helped increase footfall and enquiries to all dealerships.’ What’s more, values have held up. ‘Although used car sales fell in Q2, used car values have been at their strongest, and are likely to remain buoyant over the next

Scrappage has hurt used car sales

couple of years. This should help offset some of the decline in volumes. ‘This has been confirmed by dealer feedback that strong used car values have helped profits either increase or remain stable, despite the fall in sales. There’s further good news. Used sportscars leapt, by six per cent year-onyear, and 19.5 per cent compared to Q1. Why? The promise of a long, hot summer… Money-saving car buyers have been helping diesel win, too; Q2 2008 to Q2 2009 saw the biggest increase in used diesel car sales since 2005.

Auctions, p74; HPI Valuations, p80

Carcraft’s new location

F1’s Herbert at dealer event

CARCRAFT has opened its latest ‘Carcraft Outlet’ next to Manchester’s Trafford Centre. The Rochdale firm now boasts 11 outlets in the UK. Trafford Centre visitors will get to choose from more than 350 cars on the spacious new site – which the firm says spans every popular make and model.

HOnDA car dealer Avonvale hosted F1 winner Johnny Herbert and loads of buyers, in a unique event for the Listers firm. The northampton dealer held the latest round of ‘A Question of Motorsport’, headed by BTCC TV commentator Tim Harvey. Car Dealer Magazine was there to capture a video and a full gallery of the special event, which we’ve posted on our website. Just search for ‘Avonvale’ at CarDealerMag.co.uk. With the two teams also including other current BTCC stars, it was ‘a dream event’ for brand manager Andrew Hamer. But how did it come about? ‘Honda contacted us to see if we’d be interested in holding the event. They spoke of Mugen, BTCC, filming it… oh, and said they’d also pay for it,’ he told us. ‘Well, why wouldn’t we?’ For several weeks, the dealer ran an all-inclusive marketing campaign, covering email, SMS, telephone and, this week, radio campaigns. ‘Word also spread on the internet, with Honda Type-R and BTCC forums spreading the message, too. We ran out of chairs half an hour before the competition started!’

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

Sell cars online at

Sell more cars. Over 3.3 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 CarDealerIss19.indd 19

You take the wheel ™

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...Richard Aucock’s Frankfurt Motor Show preview

Saab reveals vital new 9-5

Mad MInI concept set to wow crowds

THIs is Mini’s latest take on its popular city car – a Coupe concept that will star at Frankfurt. The low-slung twoseater will be based on the current MINI platform, and use its engines – including the 211bhp 1.6-litre turbo. It’s a bit longer than the hatch, but a lot lower to the ground: 1,356mm is comparable with an Audi TT. It also has an aluminium roof to lower the centre of gravity and boost handling. some panels are shared with the MINI Convertible, and it has the family front-end look. But it also has plenty of unique features, not least the steeply-raked windscreen, totally bespoke rear end and lack of rear seats that have been dumped to create a 250-litre boot.

More details of Citroen’s funky DS3

CITROEN will reveal the first production model from its upscale Ds line next month – the MINIrivalling Ds3. It will be on sale from spring 2010, with prices to be announced before the end of 2009. BMW has worked with Citroen to develop three petrol engines, and there are also two HDi turbodiesels. The greenest of the oil-burners will emit just 99g/km. Citroen promises space inside for five, within a bodyshell similar in size to a Ford Fiesta. The 285-litre boot sounds competitive too. Stay up to date every day at CarDealerMag.co.uk

PORsCHE has unveiled its £100k 911 GT3 Rs racer special that will be in UK dealers in February. The firm says the lightweight special is so pure, it’s comparable with the iconic 1973 Carrera Rs 2.7. A 3.8-litre ﬂat-six produces 450bhp, 15bhp up on the standard GT3. That equates to 118bhp per litre – incredible for a non-turbo engine. Internals have been revised to help it rev both faster and higher, and it’s mated to a six-speed manual gearbox with a special short-throw shift. The ratios have a shorter transmission ratio, too.

the GT3 Rs, which has wider tracks both front and rear – this has necessitated new, wider wheelarches. That huge carbonfibre rear wing also means downforce is considerable. How else can you spot the GT3 Rs? By the Oh, and there are ‘active’ lower ride height, twin tailengine mounts, which pipes, exclusive body parts change in stiffness accord– oh, and squint closely, to ing to how the car’s being driven. Why? To counter the spot some, er, ‘distinctive’ movement of the drivetrain, side graphics. Porsche has not released and make it handle better! Active suspension has also any technical details, only a price: £100,760. Gulp! been specially honed for

Bentley takes fight to Phantom BEnTLEY has pulled the covers off its all-new Rolls-Royce Phantom rival – the Mulsanne luxury saloon. It was unveiled at the super-posh Pebble Beach bash in California recently and stole the show. Dr Franz-Josef Paefgen, chairman of Bentley, revealed the firm hadn’t approached the new car lightly. ‘The challenge we set our engineers was to create a new grand Bentley that would stand as the pinnacle of British luxury motoring, offering the world’s most exclusive driving experience,’ he said. The Mulsanne name draws upon Bentley’s Le Mans success, and indicates the new luxury

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not for the shy and retiring, new 911 GT3 RS boasts 450bhp engine

model will offer a distinctly sporting alternative to the easy-going Phantom. Bentley calls it a ‘pure’ grand-touring model. no figures have yet been released, but we expect towering performance. The Mulsanne has been inspired by the last ‘all Bentley’ model, the 1930 8-litre. After that, Bentleys owed their roots to other car firms, such as Rolls-Royce and Volkswagen. It will be built from next year at a hi-tech new plant at Crewe. Cult Car: Bentley Arnage, p42

Seat’s Cupra grrr-R sEAT will unveil an ultrahot-hatch version of the Leon Cupra R at Frankfurt – punching out 265bhp. The tuned 2.0-litre TsI motor sees it yelp to 62mph in 6.2 seconds, yet it can still average nearly 35mpg – not bad for the firm’s ‘most powerful car ever’. so powerful, in fact, it matches the poke of sEAT’s World Touring Car racer! Helping this transfer to the road is an electronic limitedslip differential for the front-wheel-drive motor. It’s also jam-packed with standard equipment, befitting of its range-topping status. Marking it out will be R logos outside and in, huge 19-inch wheels and 17-inch brake discs behind them!

SAAB has officially revealed its most important car in decades: the all-new BMW 5 Series-rivalling 9-5. Debuting at Frankfurt, it will go on sale in 2010. Striking looks give the new model an almost concept car look, but Saab promises plenty of technology below the surface, and a ‘driver focused, sporty driving experience’. Technological highlights include a head-up display, adaptive xenon headlights and cruise control, keyless entry and all-wheel-drive with electronic differential. There’s also an all-turbo four-cylinder engine line-up, which will include a 53mpg diesel emitting 139g/km of CO2. This 2.0-litre engine will be the same unit Vauxhall has just unveiled in the Insignia Ecoﬂex.

Saab’s radical new 9-5

Visually, the steeply raked saloon rear end is striking. There is a bold window line with black pillars, giving a ﬂoating roof look (harking back to the original Saab 900) while rear exhaust outlets also look smart. news of the latest 9-5 comes just weeks after it was confirmed Saab is to be bought in its entirety by Swedish supercar maker Koenigsegg. The deal has been signed and will be completed by the end of the year. The offer depends on the Swedish government meeting financial promises, and GM helping Saab turn into an independent car maker. As part of this, GM and Saab will continue to share engines and technology, for a tightlydefined time period. GM Europe president Carl-Peter Forster reckoned the deal was good for all concerned. ‘Saab’s great cars, its unique design, safety and engine-technology, as well as its excellent brand image, combined with Koenigsegg Group’s unique combination of innovation and entrepreneurial spirit, bode well for a successful future.’

More: Car Dealer is heading to Frankfurt. Visit CarDealerMag.co.uk from Sept 15 for news 4/9/09 13:48:29

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Take the wheel and shift enquiries up a gear.

Sell online at

You take the wheel ™

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

• Desperate Seller

• Mail Online

• The Sun

• Parkers.co.uk

• Teletext cars

• Cars By Mail

• Carsource

• ‘This is’ sites

• The Independent

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 3.3 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 Parkers.co.uk, Carsource.co.uk, Carsbymail.co.uk, Teletextcars.co.uk, Desperateseller.co.uk, the ‘This Is’ sites, The Independent, The Sun and the Mail Online.

Sell more cars. Over 3.3 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 CarDealerIss19.indd 21

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BIG MIKE T-SHIRTS! We’ve been bullied by the big Man to put the illustrations his Mutterings inspired on your chest...

Love Big Mike? Help pa y for his pies...

£14.99 Per T-sh irt, plus £.3 reco rded postage and pack ing

Fire up the Quattro!

BoyRacer.

Geek Chic.

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I am B igMik e.

PrangedIt. you say? 29% APR,

ged It 4. Pran

the phone hasn’t stopped ringing since we published big Mike’s anatomy of a car buyer asking for us to put the brilliant illustrations on t-shirts. oK, that’s a lie, but we really wanted one and thought you might like one too...

5. I

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the big Man has made sure we’ve cut him a deal for using his name – the fact his rottwieler was off his lead and drooling on our desk didn’t help – so after tense contract negotiations we’ve ﬁnally been able to offer these designs.

if you want to look big Mike cool, and trust us (he’s forcing us to type this), you really do want to, ﬁll in the form below and get your order in. he’s promised us he’ll send his valeting boy out to personally deliver every one. but don’t believe that...

style (insert design number here): ............................................................................................................................ siZe: all t-shirts come in white and cost £14.99 per item, with small postage and packing via Medium recorded delivery £3 on top. if you’d like more than one, please large insert a note with your order. We Xl aim to deliver in seven days. if we don’t, big Mike is to blame. XXl

please send cheques made payable to blacKball Media ltd to car dealer, po box 227, gosport, po12 9de. if you’d like to pay by credit or debit card enter your email address below and we’ll send you an invoice for online payment: ......................................................................................................................................

ORDER FORM... naMe:................................................................................................................. address: ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................

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? es...

big mike

The auction hall tricks and how they sometimes fail I

get most of my stock these days through the trade, by underwriting trade-in stock through main dealers. However, just recently I’ve had a real shortage of decent cars, partly because of the lack of steady business caused by economic uncertainty, partly due to the scrappage programme and its ability to eat up most of the sub£3k stuff that for years has been my stock-in trade, and partly because used car values have rocketed in recent months, meaning quite a few punters are taking advantage of the upturn in values to shift their cars privately. This left me with no option but to go back to what used to be my second home – the car auction – in order to battle with other traders to find decent stock. The thing with auctions these days is that they’re actually quite tricky to get good stock from. Established local used car emporiums much like my own have earned good relationships with supplying agents, which means we’re used to stock finding us rather than the other way round. The deal is that if you have a couple of good sources you underwrite the lot, take the crud with the good and generally make a decent living out of it. Or that’s the theory, at least… All very well, but these days even the crud is sought after, and that makes a reputable chap like myself a little bit wary, as for years I have prided myself on supplying good quality cars to people who, a few years down the line, I would quite like to sell another vehicle to. Get enough return customers, and you’ll soon find word of mouth is the most effective marketing tool there is. What’s more, it’s this same theory that makes me wary of auctions. Back in my early years, I used them to source most of my stock. But now I’ve been round the block a few times myself, I tend to use them instead as a kind of garbage disposal unit. If I buy, say, 10 cars from a main agent, there’s a good chance I’ll shove three of them through the

They don’t always work at reputable auctions, but Big Mike has tricks that can get results at others...

‘The deal is if you’ve a couple of good sources you underwrite the lot, take the crud with the good and generally make a living out of it.’ block and get back less than they stand me in at, but find myself duly compensated by the profit I make from the others. It’s business, and that’s the way it works. And so it was that I was down the auction house the other day, watching all of the old tricks of the trade at work. The sheepskin coat brigade were still using some of the oldest tricks in the book to get the best prices, and it reminded me of my youth. I think it’s important to mention here that the auction house I went to was a very small independent one – the big boys these days (who tend to have rebranded themselves as ‘remarketing consultants’) are very professional, and have chased some of the rough end of the trade out of town, but the old ‘let the buyer beware… very beware’ adage still stands true among the murky backstreets. One bloke I saw clearly damaging

three of the side panels on a blue Peugeot 106. In the car park was a Mitsubishi Shogun, on the back seat of which were three Peugeot 106 panels in the same shade of blue. Might it just have been coincidence, or had said Rottweiler just been down the scrappie to buy some parts that, until he went near it, the car didn’t previously need? One of the old tricks of my youth, back in the heady days of external bonnet releases, was to pop the lid and remove the rotor arm in the hope a potential purchaser would be sold on as a non–runner, but it got to the stage where this was so rife the auction house used to keep an Oxo tin full of Lucas ignition parts behind the rostrum just in case. Which leads me to the source of my rant. My trip down the auction was rather exciting, as being someone who knows the trade well I can often see past these little scams. Which got me rather excited when a rather tasty V6-engined Alfa Romeo rolled into the hall, with every single warning light on its dashboard aglow. I remember from selling these things new that you could get them all to illuminate by simply pressing a ‘Test’ button on the instrument binnacle, and the auction hall trick of the trade was to wedge the ‘Test’ button in before the car went through the room, making less-informed punters think that the thing was so poorly it had it tripped all its onboard diagnostics into action. Smugly, I bid against one other rather surprised individual who gave in £600 under book because he probably thought he was up against someone so naïve they’d go all the way to the car’s retail value, blindly unaware of his little trick. It was only when I got home that I realised Alfa Romeo had long since deleted the ‘Test’ button, and the bloody thing really was lit up like a Christmas tree. Anyone know a good auto electrician? Who is Big Mike? Well, that would be telling. What we do know is he’s had 30 years in the car trade and picked up some seriously funny tales along the way.

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SPECIAL REPORT

Hi, Mac

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hen McLaren launches a new road car the world sits up and takes notice. Make no mistake, this is THE most important launch of 2009. Perhaps even the decade. Car Dealer Magazine was one of only a handful of publications to be given early access to these pictures and details of the incredible new McLaren MP4-12C. Here you can read about the groundbreaking technology debuting on the stunning road car, get views from McLaren Automotive chairman Ron Dennis and the team behind the project, as well as read a World Exclusive interview with the man leading the hunt for dealers across the globe. Enjoy the ride.

James James Baggott Editor, Car Dealer

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Y SPECIAL REPORT

his is the McLaren MP4-12C – the first model in a range of road cars from the manufacturer that plans to rewrite the supercar rulebook. With a host of clever new technology, taken straight from Lewis Hamilton’s World Championship winning F1 car, the breathtaking sportscar doesn’t just break the mould, it takes a sledge hammer to the production line. The MP4-12C is the first car from McLaren since the £634,500 F1 exited production in 1999. By the end of its run, McLaren had made 107 examples of that groundbreaking car and even now they still sell for in excess of £2.5m – if you’re lucky enough to find someone who’ll sell you one. But now McLaren is writing a new chapter in its history with this incredible new machine. Designed from the ground-up with McLaren’s legendary attention to detail, the new supercar is packed with innovation. Powering the car will be a twin-turbocharged 3.8-litre V8 unit – dubbed the M838T. Pumping out a mind-blowing 600bhp and 600Nm of torque, performance figures are likely

to be as record-breaking as the original F1. There’s no official word just yet, but expect sub-four seconds for the dash to 60mph and a top speed in excess of 200mph. The dry sump unit has dual variable valve timing and a flat plane crankshaft that allows the engine to be mounted very low in the chassis, lowering the centre of gravity and improving handling. Driving the rear wheels, the engine revs to an ear-piercing 8,500-rpm and McLaren has worked hard to get the soundtrack symphony right. Using a special exhaust manifold and intake system, it will have an engine note that’ll set the hairs on the back of your neck on end. McLaren’s philosophy from the outset was to build a supercar that wouldn’t just be an also-ran, but the best. And with Ron Dennis at the helm, it’s unlikely it will be released with performance that won’t just beat the competition, but trounce it. Although there’s currently no word on a price, the MP4-12C will be launched to compete in what McLaren believes to be the ‘core’ sportscar market – the £125,000 to £175,000 segment. This >

‘Performance ﬁgures are likely to be as record-breaking as the original F1. There’s no ofﬁcial word just yet, but expect subfour seconds for the dash to 60mph and a top speed in excess of 200mph.’

F L c A w

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SPECIAL REPORT

‘What drives the people at McLaren is passion - if you cut them, they bleed McLaren’ McLaren boss Ron Dennis on the new MP4-12C

‘I

t is a long-held dream of mine to launch high performance sportscars that set new standards in the industry. We began designing and building cars for aficionados of thoroughbred sportscars almost 20 years ago. Incorporating the leading edge technologies that the McLaren Group has built up within its various companies, I believe we are now perfectly placed to open up this new chapter in McLaren’s history as well as play a part in the regeneration of high-tech manufacturing in the UK and global automotive environment I am confident that now is the right time for McLaren Automotive to become a full line high performance sportscar manufacturer. Worldwide demand for high performance cars is strong, in large part because of great cars from great competitors. With McLaren joining that list,

it will grow stronger still. What we are offering is a new approach to the market, through a skilled, solid, debt-free and risk-managed company. McLaren is right to take this step now and support future growth of high-technology manufacturing and engineering jobs in the UK. We are very proud of the McLaren MP4-12C and all the teamwork, intelligent thought and sheer effort that has gone into developing this car. What drives people at McLaren is passion – if you cut them, they bleed McLaren. And there is no doubt in my mind that the 12C fully reflects that focus, drive and determination in its performance, style and ownership potential. We respect and admire our competitors in the high performance sportscar market, just as we do in the world of Formula 1, but I also believe that fierce competition drives technology and innovation and produces ever better products.

With the McLaren MP4-12C we are determined to deliver the best car in its sector by almost any measure. It is our philosophy to push what is possible in car design and engineering and bring innovation and engineering excellence to the performance car world. We have an incredibly dedicated team at McLaren who continue to drive this company to ever greater achievements, and the 12C represents the passion within, as the first of this new range of performance cars from McLaren. This is the start of an new chapter in McLaren’s history, in British high-technology engineering and manufacturing, and in global sportscar design. We aim to be the best, but will leave that ultimate judgement to our first customers in 2011. Until then, we will strive to put one name at the top of the ‘most wanted’ list for buyers of high performance sportscars: McLaren.’

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‘McLaren’s philosophy from the outset was to build a supercar that wouldn’t just be an also-ran, but the very best out there.’

means key rivals will include the Ferrari 458 Italia and Lamborghini LP560-4 – and gives a good indication of the kind of performance the new car will produce. That 3.8-litre V8 unit is mated to a seven-speed Seamless Shift dual clutch gearbox – or SSG. Much like the DSG system on a VW Golf, but far more advanced. Again, taking technology honed on the marque’s F1 cars, shifts are made by steering wheelmounted ‘rocker’ levers. Like the F1 cars, they can be made by pulling or pushing the rocker. But where things really get clever is with ‘Pre Cog’ technology. This primes the gearbox for a change the second the driver applies pressure to the rocker, thus saving crucial time. The second bit of pressure actuates the shift, which takes just milliseconds to complete. Think of it as priming the shutter on a digital camera and you get the idea. It’s certainly clever stuff. The SSG box also offers variable programmes

for shifts, from normal for road use, through to quicker changes in sport, and lightening shifts in high performance mode. There’s also an automatic setting, launch control and winter mode. The fact the car even has the last setting goes to show McLaren expects owners to actually use their cars, not preserve them just for sunny Sundays. Usability has obviously been high on the agenda, with McLaren saying ride quality will be on a par with executive saloon cars. But that’s not to say it won’t be sporty too. The maker says it will be breaking new ground with the levels of roll control and grip – but the combination of sporting credentials and occupant comfort will be unsurpassed. The technology behind this blend is quite complex. Suspension is based on double-wishbones with coil springs and hydraulic dampers that can be adjusted depending on road conditions and driver preference. >

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SPECIAL REPORT

Continuing the F1-inspired technology is Brake Steer, an innovation that debuted on the 1997 McLaren MP4/12 Formula 1 car. It’s a system that helps reduce understeer by braking the inside rear wheel when the car enters a corner too quickly for the turn. Instead of the front washing away from the apex, Brake Steer brings the nose back in line in the same way a limited slip differential would – but without any of the weight penalties that would bring with it. An air brake, as seen on the SLR, is also fitted to the MP4-12C while lightweight composite brakes, with electronic brake force distribution, ABS and traction control keep things under control. At the heart of the new car though is a truly unique carbon MonoCell. Five years in the making, this forms the epicentre of the whole 12C, drastically cutting weight and boosting performance in the process. Building on the

carbon composite technology McLaren took from the aerospace industry for the original F1, the new MonoCell weighs just 80kg and offers superb safety to its occupants. One of the major advantages of using this material is the fact it doesn’t degrade over time, so whereas metal structures can fatigue, the MonoCell will remain as rigid as the day it was built. Looks wise, the new car has been designed so every part, every scoop and every slant has a purpose. McLaren are keen to stress the 12C is not a modern-day reproduction of the F1, but does build on its ‘functionally-driven engineering and design’. Put the cars side-by-side and you can certainly see they’re siblings, but any similarities between the two cars are for a reason. There’s no doubt the 12C is a stunning machine though. Bi-xenon headlights with LED daytime running lights, inspired by the McLaren logo, >

What’s in a name? MP4-12C might not be the mouthful Lamborghini’s latest monikers are, but it’s still a bit of a tongue-twister. Thankfully, McLaren has already started referring to it as simply the 12C. A lot of this is to do with the fact the ‘MP4’ part has been designated to all chassis built by McLaren since 1981 when Ron Dennis’ Project 4 organisation merged with McLaren. The ‘12’ in the name is a bit more complicated. It refers to the maker’s internal ‘Vehicle Performance Index’ which rates performance criteria of competitors and its own cars to give an overall figure. Criteria includes power, weight, emissions, and aerodynamic efficiency. The ‘C’ refers to carbon, and the extensive use of the material in the new car.

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SPECIAL REPORT

‘By the time the 12C is launched in 2011 we expect the economic conditions to be much improved’ How McLaren plans to market its new supercar

t might seem like the wrong time to be launching a sportscar – especially one that’s likely to cost in the region of £170,000. But Ron Dennis believes by the time the 12C hits the market in 2011, the economy will have recovered, bankers will be banking their bumper bonuses again and supercars will be selling. McLaren divides the supercar market into segments that encompass both more comfort–orientated GT cars and the hard-edged supercars for road and track use. It says the ‘core’ segment runs from around £125,000 to £175,000, featuring such cars as the Ferrari 458, Lamborghini Gallardo, Porsche 911 Turbo, Bentley Continental GT and Aston Martin DB9. A second segment is the ‘high’ category with prices

ranging from £175,000 to £250,000 and consists largely of front-engined GT cars such as Ferrari’s 599 GTB and 612, with just one mid-engined contender, the Lamborghini Murcielago. The final segment is the ‘ultimate’ group, a sector McLaren says it initiated with the F1 in 1993 and now populated by a select group of cars including the Mercedes-Benz SLR McLaren, Bugatti Veyron, and cars from the likes of Pagani and Koenigsegg that followed legends such as the Porsche Carrera GT and Ferrari Enzo. McLaren says it will bring the technology and performance usually only reserved for the ‘ultimate’ group into the ‘core’ segment. Essentially what they’re saying is the 12C will offer Bugatti performance for

Ferrari 458 money. Or at least that’s what we hope they mean! ‘By the time the 12C is launched in 2011 we expect the economic conditions to be much improved,’ explained McLaren Automotive managing director Antony Sheriff. ‘We have already seen significant interest in the car and the supply of the 12C will be relatively scarce; in its first year we plan to produce just 1,000 cars which represents only 3.5 per cent of the “core” market.’ Now the hunt for McLaren dealers begins. Find out what the brand is looking for in our World Exclusive interview with the head of network development on page 34.

‘The real talking point are the doors – just like the F1 the 12C features dihedral doors, that open forwards and upwards on a single hinge.’

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dominate the front end, the windscreen is deep and low for excellent driver visibility, and the twin rear exhausts are striking. But the real talking point are the doors – just like the F1 the 12C features dihedral doors, that open forwards and upwards on a single hinge. Not only do they look seriously smart, but they make getting in and out of the car in tight parking spots a whole lot easier. Inside, design has been dictated by function. There are no buttons or controls on the steering wheel for example, keeping it clutter-free. Even the design has been the result of extensive research into former F1 drivers’ grips, helping mould the thickness and feel of the wheel. This ‘clean’ approach dominates the cabin

too. There’s no abundance of switches, buttons or knobs to confuse the driver. Most controls are contained within a seven-inch touch-screen telematics system that has been mounted ‘landscape’. McLaren realised that humans prefer to read down the page, so set the screen like a mobile phone’s, so the driver can read it easier. It also helps keep the overall width of the car down. The driver and passenger sit closer together in the 12C than rival cars. This helps the driver place the car more accurately on the road, allows more space for arm movements during hard driving and also leaves room for a door console, where a number of controls have been placed. All the parts for the 12C have been made bespoke for

McLaren – there are no bits from the parts bin of another manufacturer here – even the stereo is being especially made by high-end audio experts Meridian. See what we mean about breaking the mould? The MP4-12C is groundbreaking in every sense of the word, and is set to change the face of the supercar glitterati. We can’t wait to get behind the wheel.

The MP4-12C is due to be officially unveiled at the Frankfurt Motor Show where more details including the price and performance figures are likely to be released. Car Dealer Magazine will be at the German show and reporting live on our website CarDealerMag.co.uk, so check it out for more details.

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SPECIAL REPORT

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‘I do not believe that laying down a set format for all dealerships around the world is logical, effective or even desirable. As a small volume manufacturer we can work with each dealer individually to find a proposal that is cost effective, meets both the brand and the dealer’s needs, is suitable for the local market, and is financially strong.’ David Lumley-Wood Head of network development McLaren Automotive Limited

Selling the dream

The MP4-12C is coming. James Baggott secured an exclusive interview with the man charged with building a dealer network to sell it

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SPECIAL REPORT

The Car Dealer interview:

David Lumley-Wood

o you hear that trembling? It might be a bit faint, but it’s the sound of fear wafting out of the boardrooms at Maranello and Stuttgart. One can only imagine the Ferrari and Porsche bigwigs are flailing arms/planning efficiently in the way only Italians and Germans can when they know something big is brewing. And worries don’t get much bigger than an all-new road car from the might of McLaren – especially one which Ron Dennis wants to be selling 4,000 of across the world by 2015. And it’s not just one car either – McLaren plans a whole range which has Ferrari’s 458 and Porsche’s 911 firmly within its sights. Scary stuff for them, but seriously exciting for the rest of us. Ron Dennis gave up mentoring Lewis Hamilton and the day-to-day running of his F1 team at the beginning of the current season simply because he wanted to lead the McLaren Automotive project from the top. As only Ron Dennis and his attention to detail can. A new factory, creating 800 jobs, is planned to be built alongside the current McLaren Technology Centre in Woking, Surrey. It is here where the spiritual successor to the iconic F1 will be built, a car that, according to Dennis, will be ‘the greenest most economical’ supercar on sale. But an all-new car means an all-new dealer network is needed to go with it. With a brand as ferociously protective over its image as McLaren, the partners the manufacturer chooses to retail its car will have a lot to live up to. To find out more about the plans for the brand’s worldwide network, Car Dealer Magazine secured an exclusive interview with the head of network development at McLaren, David Lumley-Wood. The 37-year-old is currently travelling the world searching for dealer partners, but found the time to sit down and answer a few of our questions. Here is the interview in full.

How is the hunt for McLaren dealers going? In short – our plans are shaping up really well. We have had a really positive and enthusiastic response to those with whom we have been speaking – they are absolutely endorsing our product, marketing and brand plans, and the fact that we are trying to come to market in a different way. From the outset we have been very clear that we should develop our strategy in conjunction with dealers, actively incorporating their input, and their contribution has been invaluable. Rather than preparing a ‘master plan from HQ’ and then set out to hunt for dealers to fit our pattern, I have been spending a lot of time visiting the best dealers in the segment all over the world, and really looking at a model that will work for both parties. That means that we are now much more closely aligned with the dealer perspective, and we can avoid some of the usual pitfalls we see in the market. We also have a huge advantage in that we carry no legacy in terms of systems or processes, so we can start in the best possible shape with a costeffective and efficient business model. So far we have built up a bank of dozens of contacts all over the world, some of whom have been working with us to fine-tune our plans for over a year. The best retailers will end up representing McLaren Automotive.

‘I would like to see all key staff at dealerships visit our facilities here at the McLaren Technology Centre to really get to understand our history and approach. I would also like to see dealers bringing customers to MTC for the same reason.’

What sort of dealerships are you looking for? Will they have to be built from scratch? I do not believe that laying down a set format for all dealerships around the world is logical, effective or even desirable. As a small volume manufacturer we can work with each dealer individually to find a proposal that is cost-effective, meets both the brand and the dealer’s needs, is suitable for the local market, and is financially strong.

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requirements that are appropriate, commercially viable, and that work in a dealer environment. That means we will have requirements around customer care and some elements of the physical space, but will not be going down the route of cookie-cutter or homogenous dealerships. I absolutely oppose excessive investment in furniture or buildings that do not generate commercial returns or increase the customer experience.

Will you consider luxury car specialists seeking their first franchise?

Curriculum Vitae Name: Job title: Age: Family? Drives: Lives?

David Lumley-Wood Head of network development, McLaren Automotive Limited 37 One son, two daughters, and the most supportive wife in the world Varies – at present Mercedes C Class and a BMW R1200GS Commute between Buckinghamshire, Woking and dealer locations all over the world

If they can demonstrate that they would be the most appropriate partner and can meet our requirements, then yes.

Are you quoting return on sales figures to dealers? No – we complete an individual business plan for each location to ensure that the return on the investment is good, and the cashflow and funding are solid. Return on sales is a really poor measure anyway – I hope one day to see the end of the focus on this KPI as an industry measure.

What sort of dealer numbers are you looking for? We expect to launch initially with 30 to 40 dealers globally, expanding on that as the parc and product range grows.

What sort of staff will you be looking for? I think if we select the right dealers with the credentials, professionalism and experience in their local market, and who really understand the McLaren brand, they will be best placed to determine their own staff. I would like to see all key staff at dealerships visit our facilities here at the McLaren Technology Centre to really get to understand our history and approach. I would also like to see dealers bringing customers to MTC for the same reason.

What funding will they need in place? That will vary depending on the local market, the location, and the size of the opportunity. I am sure that all dealers will want to develop a proper business model to assess the return on the investment and the adequacy of their individual funding solution. One size does not fit all.

Can you put a figure on the amount of investment needed? As I say, that will vary based on a whole range of factors. Our objective is to agree an investment with the dealer that shows a good return… if it does not make financial sense, we do not want to do it.

What is the target market for the new car? What geographical areas are you targeting? The cars will be globally homologated, and we will launch into all the key markets around the world.

The target market will be buyers who will appreciate something unique in the traditional performance car arena. The car combines >

Would you be happy for McLarens to be sold alongside other marques? Yes – provided it works for all concerned. Clearly, like any high value brand, we would like to see that brand protected and clearly communicated, but all the potential dealers we have been speaking to have strongly endorsed that approach too. The rules of customer service and common sense should guide us here, rather than ego or dogmatic manufacturer standards.

What sort of dealer requirements will there be in terms of manufacturer stipulations? Will you be imposing strict rules and regulations? Clearly there will be some guidelines and requirements – McLaren is one of the most exclusive and valuable names in the industry thanks to our Formula 1 World Championships, victories at Le Mans, Can Am and in Indy Racing, as well as our remarkable history in road cars such as the McLaren F1 and the SLR. That does mean that we have a clear picture of the McLaren brand values and attributes. Anyone who has visited the McLaren Technology Centre in Woking will see that we do place a value on the quality and feel of the environment. The challenge is to translate that into brand

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SPECIAL REPORT

attributes which you normally think of as opposing – practicality and beauty, comfort and shattering performance, power and environmental credentials. Everyone here at McLaren is hugely excited about the fact that it will fundamentally shift the boundaries of the segment when it is launched – much as the original F1 did in its segment.

What sort of numbers will the average dealership be selling? That is going to vary on the location. We are breaking away from the idea that there is a fixed average sales volume per location which drives coverage, and instead trying to shape individual dealer locations to suit the local market. We do have the concept of ‘Flagship’ locations which basically just means a slightly different dealership footprint set up for key higher volume locations.

What is the hope for total sales per year? We will produce one thousand cars in the first year, 2011. The range will expand quickly in the years to come, up to between 4 and 5,000 – very much lower than the competitive segment. The plan is to offer a more exclusive product, with much higher performance in all aspects – power, efficiency, dynamics – and a much better customer experience than our competitors.

What franchise would compare closest to McLaren? From what I know of our plans, I genuinely do not think there is one.

Will you (personally) be setting up the network across the world? McLaren will not be operating any dealerships anywhere – we will leave that to the experts! But I am working on establishing dealer locations all over the world. The car will be available globally via the network of McLaren dealers.

What is Ron Dennis’ vision for the McLaren dealership network?

‘I am working on establishing dealer locations all over the world. The car will be available globally via the network of McLaren dealers.’ Ron Dennis has said the McLaren Automotive revolution will stretch to how the cars are sold – what did he mean? We have taken apart all the aspects of retailing and we are seeing how we can put together the best possible model. We are trying to get rid of some of the old inefficient or low value activities, and work a lot smarter. It’s a benefit of the lack of legacy processes – we can build anything from scratch. We are adopting simple core philosophies around keeping demand high, reducing the cost of ownership through service and parts pricing, and trusting our retail partners to work with us. We are also building in some best practice from outside the sector, in particular around customer care.

As chairman of McLaren Automotive, Ron is closely involved in all major decisions, and he’s therefore had detailed input into our retail plans.

Will there be anything special as part of the buyer experience? I seem to remember a model being delivered with every McLaren F1. Is there anything like that in the pipeline?

Are you speaking to any major dealership groups that you can reveal?

That sort of thing is all the work in progress we are developing alongside dealers to get the customer experience right. I am certain it will be something special, and we do have a number of exciting potential plans.

It’s a little bit early to disclose that kind of thing. We are working with a number of the very best dealers in this segment from around the globe.

What is McLaren Automotive’s ultimate goal? Our goal is to design, build and supply the world’s best high performance sportscars that offer new technologies and a new ownership experience.

How is aftersales going to be managed? In broad terms, along the same lines as more mainstream franchise operations i.e. through qualified technicians at a franchised dealer. The simple fact is that customer loyalty is the powerhouse of dealer profitability. How did you get this job? I trained as engineer in order to join Army, then qualified as accountant. Ten years ago I moved into retail, then into the motor industry: first as Network Development Manager for Audi UK, then Network Business Manager for MBUK, finally to McLaren in 2008. I can genuinely say that I am doing the job I dreamed of – it’s the most challenging, interesting, demanding and exciting opportunity I can imagine. It’s a phenomenal brand developing the most incredible cars, with the opportunity to help shape the business from the outset. A dream job! [CD]

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forecourt

Sport’s DAY

New engines, fresh interior and exterior tweaks keep the Range Rover Sport at the top of its game

and Rover admits the Range Rover Sport has been a brilliant car for them. It boasts almost the cachet and allure of the bigger Range Rover Vogue, yet is derived from the more attainable Discovery 3 mechanicals. This keeps prices realistic – and demand high. Beefy profit margins on this hit model mean the firm’s been able to answer some of the criticisms of the original one, launched back in 2005. The outside style hasn’t changed much – a new grille here, touched-up bit of plastic there, but not much else – however the interior has been completely made over. Customers, it seemed, didn’t like the plasticky look of the Range Rover Sport. Too Discovery 3 derived, they said. They weren’t wrong, either;

it was a sharp contrast to the brilliance of the big Vogue’s cockpit. So, for 2010, Land Rover’s completely junked that, fitting something much more up to scratch. The dashboard is considerably more stylish,

0-100mph-0

See our man Aucock put the RR through the benchmark test in the editors’ blog section at CarDealerMag.co.uk

the button count has been reduced and it’s been given a cockpit-style look all of its own. Sitting in it, within deep seats, elbow resting on a tall centre console, the cocooned feel is not unlike that offered in a Bentley Continental GT –

despite the car’s outward appearance. It’s also of far higher quality than before, with detailing like that on posh mobile phones. The hi-res centre display screen is cool, and the world’s your buyers’ oyster when it comes to options choices. They’re more than happy to indulge too, it seems; the many new bespoke options offered with the 2010 version should make car dealers even happier. Under the bonnet are new engines, alongside the familiar (and top-selling) 2.7-litre diesel. There’s a brilliant new 3.0-litre diesel, which will take the 2.7’s crown. But there is also a mighty 5.0-litre V8 Supercharged version. Because, y’know, 5.0-litres alone isn’t enough. No, you of course need to strap on a supercharger,

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‘Some clips of it leaked out on to YouTube; we didn’t sanction it, but are pleased. Nothing like a bit of viral marketing!’ Range Rover marketing director Anthony Bradbury too. Meaning that Bentley feel continues out on the road. It has 510bhp plus a full 625Nm of torque available at almost any engine speed. Sure, Land Rover’s fitted steering shift paddles to the six-speed auto for the first time in its history – but they’re not really needed. This thing flies whenever you want it to, no matter what the gear. Despite being big, heavy, high off the ground and able to go further off road than any rival, the Range Rover Sport SC also manages to dip below six seconds to 60mph. It will go from 0-100mph-0 again in 16 seconds, ably slowed down by a monstrous set of Brembos. Performance is staggering, yet also extremely cultured and manageable. No matter how hard

to believe this sounds… It corners, too. Land Rover has bolted on the CATS-style suspension systems used in the same Jaguar XKR it nicked the engine from, giving this beastie unlikely finesse and ability. It proves anyone who says a big off-roader cannot be sporty wrong. Sharp steering, crisp handling, tight body control; honestly, what does it think it is? Some sort of sportscar? Uh, indeed it does. That’s why it’s called Range Rover Sport. The new diesel engine ticks the punchy eco box that dealers will make most hay from, but the new Supercharged model remains the one their most premium customers will be bling-jewellery-jangling towards. From an already high base, it’s now even

better. Given how the old one sold despite its flaws, it seems Land Rover dealers could about to get their rewards for seeing through some of the hardest times on record. Here’s hoping.

I SELL THEM… THE Supercharged is the dealer’s key weapon in the Range Rover Sport 2010 line-up. That’s why, says marketing director Anthony Bradbury, the firm launched it to car dealers in a unique way: by letting them test it in a 0-100mph-0 run! ‘We want dealers to take this story back to their customers, to generate interest in the whole range,’ says Bradbury. ‘Some clips of it have leaked out on to YouTube; we didn’t sanction this, but are pleased by it. Nothing like a bit of viral marketing!’

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[cult cars]

Nothing screams old money like an Arnage. Richard Aucock explains why the Bentley enters our Cult Car hall of fame

f Continental GTs are new-gen Bentley, this is very much the old money choice. Class, elegance, upstanding dignity – oh, and a huge great slug of none-too-subtle British beef. That’s the Arnage, alright. If Brunel were alive today, he would drive one of these. Some may be surprised to discover that, despite its stately appearance, it is not prehistoric. This version came along in the 1990s – originally, appearing as the Rolls-Royce Silver Seraph. Bentley soon got its way, though, and started chucking out the statesmanlike, sedate frippery, cranking up instead the famed Bentley Boy Boldness.

Ridiculous power outputs were matched by the sort of torque figures normally discussed in the context of hydrodams. Tidal wave, indeed, is an apt way of also describing how the mighty Arnage delivers its thrust (never power, dear boy). The right-hand pedal is as sturdy as a railway sleeper, and delivers go that just never stops. Perched atop high, decadent, plumply-stuffed leather seats, occupants are pushed into them with nothing more dramatic than a creak of the leather they’ve covered in. Like a butler, whatever your request may be, it’s there. No fuss, no histrionics, nothing but the old lady gathering

up her skirt and whipping the 100m sprint. The latest, Last Of Line model, is the most searing. Try this for size: 6.75-litres, two turbos, 500bhp and 0-60mph in 5.2 seconds. It doesn’t stop either, hitting 100mph in 12.1 seconds. And it won’t stop pinning you back until 178mph. Imagine, something this big and heavy, hurtling along so fast. It’s quite a sight. But the most dramatic figure is that which is key to its character – 1,000Nm of torque. Available with a mere tickle of the organ pedal throttle. It’s like no other experience you’ll have had in a car – sheer brute force, with so much grunt making such light work of so considerable

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a bulk of car. And all without ever breaking a sweat. Remarkably, it even handles. Sure, the body isn’t as dynamically brilliant as a Flying Spur, despite 6,500 spot welds ensuring it’s stiff and sturdy. But, accept that it’s one to be stroked rather than hustled, and there’s a lot of reward to be had. Steering is crisp, handling direct, grip considerable. It’s old-school sensations with decent levels of modern ability. The connection you have here is something newer cars just can’t offer. Mind you, it’s plain wrong to chuck it about with real gay abandon. Where’s the dignity, old chap? No, sit back and savour all the trees that

have been cut down to bestow decadence upon you. The best-of-breed cows that have given their life to cover almost every exposed surface. The combination of both this and cutting-edge technology. There’s even an 1,100-watt Naim stereo. In the rear, guests can tuck into the contents of a cocktail cabinet, and munch on the smoked salmon atop unbleached wood veneer picnic tables. Furthermore, if the British weather plays that typical British trick of peeing it down, there are no less than four umbrellas secreted within, to keep the well-maintained barnets just so.

Bentley says the 150 Last Of Line models are almost entirely sold out, despite a £200k price tag. Not that money puts Arnage buyers off – indeed, four-in-five of them happily spend even more, by fitting bespoke bits from the exclusive Mulliner catalogue. The Arnage is that sort of car, that sort of brand. There’s no doubting its passing is the end of an era. The days of old Bentleys are almost through. The company is thus wise to ensure the days of Bentleys for old money Bentley buyers are to be sated. The replacement Mulsanne (p20) sticks closely to this script. Bentley sure does know its buyers. New and old.

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forecourt

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It’s not a true convertible, but that hasn’t stopped buyers flocking to Fiat dealers in their droves...

Fiat with a waiting list? You bet. That’s the measure of success earned by the funky 500, which is sold in 51 countries and has won over fans in every one. Fiat’s take on the MINI is more than up to the task. Now it’s established, Fiat’s expanding the range. First key addition is an open-top version, which dealers have welcomed in the height of summer. They’ll be less delighted to quote a £3,000 price premium over the standard car, particularly when, in all honesty, the giant fabric roof is more of a huge sunroof than a ‘real’ convertible. But, don’t worry. Fiat car buyers will still adore it. Here’s the magic of the 500 – it’s utterly beguiling anyway, and that’s only enhanced by folding back the 500 C’s Citroen 2CV-style roof. Twisting a knob varies the opening position: even cooler is swinging it fully back via the remote key. It makes the car’s other trump card, a fantastic interior, even more appealing. Elegance abounds, rather than the glitzy bling of the MINI, while canny use of exteriorcoloured plastic is extremely pleasing. As a small city car, it’s cramped in the back, of course (although the fabric roof does mean boot space is unaffected, even roof down). But, up front, the comfortable seats offer bags of room, making it feel plush and grown up. It’s no performance car, though. We tested the base 1.2-litre unit, which produces just 69bhp. However, so willing is the little motor,

this actually proves fine – it’s eager, free-revving and a lot of fun to thrash. Similarly, the handling is also entertaining, despite steering that lacks feel. Just avoid speccing demonstrators with the

£11,300

Price the new 500 C retail for

large alloy wheel options. These spoil the ride quality substantially. Let customers do that instead: the range of choices available on the 500 C is literally huge, and include a deluge of body colours, alternative roof finishes, seat trim variations – and that’s all before you get on to the stickers, the bodykits, the equipment upgrades… Yes, it’s quite easy for car buyers to spend an absolute fortune on a Fiat 500 C to their exact wish-list. And this is just what Fiat car dealers find people do (and never mind the waiting list). Many are even billing it as a city car for Ferrari

buyers, something that canny Ferrari dealers are enhancing through smart courtesy car use. The £11,300 500 C is a car we like enormously and we can completely understand where they’re coming from. With an ultra-convenient roof that can’t offer full drop-top thrills but does counter with practicality, we reckon it’s pretty much spot on. Dare we say, Bravo, Fiat?

I SELL THEM Dave Beausire, Le Mont Saint Garage THE 500 C has had the best press for any vehicle we’ve ever launched. Fiat’s priced it right, made huge strides in build quality, but it’s the design compared to rivals that really sets it apart. Our order book for it is incredible. Half of our allocation for the year has already gone! But, what we’re finding with the 500 is that it’s helping the rest of the line-up, too. The interest for the whole range has increased – and showroom traffic is up by more than half thanks to it. That we’ve just taken in an SLK for a 500 C as part-exchange really does say it all… it’s something we could only have dreamt about five years ago.

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sales legends N issans didn’t used to be Nissans in the UK. They were Datsuns, and models such as the supermini-sized Cherry made the firm’s name here in the 1970s. Reliable, cheap and sturdy, they were pretty dire to drive, but reassurance-seekers didn’t care. The cars were fuss-free enough to establish the idea of Japanese cars in the UK. By the 1980s, the Cherry had grown. As had Datsun parent Nissan. Solving two problems in one swoop, the firm belatedly launched a crucial model in 1983 – the Micra. By Nissan. Designed to compete with supermini competition such as the Austin Metro and Ford Fiesta, it was an identikit three-door supermini. But one designed with Japanese values very much in place. The hi-tech 1.0-litre engine was all-alloy, and could punch out up to 55bhp. Servicing costs were low, reliability was bulletproof and, given how vital economy was back then (too), it had one magnificent claim. Britain’s most economical car. Constant 56mph? 67.3mpg. Wow. Datsun’s 400-odd UK dealers were, by now, being rebranded Nissan, which launched the Micra in two models. There was a base fourspeed DX, costing £3,750, or a more powerful GX with a five-speed gearbox. These prices compared well with rivals – a 1.1 Fiesta Popular Plus was £4,150, a 1.0 Metro L, £4,275. It was no surprise to drivers, who discovered a perfectly workable but otherwise unadventurous small car. The plain styling was reflected in plain dynamics. The interior was bland, space no better than average. There were no major flaws, but nothing to stand out, either. Even so, its simplicity ensured it became popular. The gearchange and clutch were totally foolproof, the engine reliable, all controls operated with little effort – goodness, there was even a standard automatic choke. Throw in other luxuries cuch as tinted glass, locking filler cap and rear wash wipe and the Nissan baby looked

Micra even more attractive. There was a minor facelift in 1986, where 6,000-mile service intervals became 9,000-miles. Here, trims were revised to L, Colette and SGL – available, a year later, in five-door form, too. By 1989, there was a 1.2-litre engine, plus a series of facelifts that took the dull but worthy Nissan through to replacement in 1992. This was where the next revolution occurred. The new car was ultra-competitive. Built in Britain. Attractively styled – charismatic, even. Yet it still boasted all the dependability of the

It’s been a winning formula from launch back in 1983. Richard Aucock explains why

original. Sales took off, it was voted the firstever Japanese Car Of The Year… Nissan was now a serious manufacturer of EU-friendly cars, rather than being a brand for corduroy trouser man. Nissan reinforced the cool-ness with the latest-generation car in 2003. Developed alongside the Renault Clio, it was as grown up as the Nissan brand itself now was. Forget the Cherry, this baby now shared floorspace with X-Trails and 350Z…. Oh, and aftersales car park space with the first-generation Micra. See, even in 2006, a UK car magazine discovered that, of the 340,000 original-shape Micras sold in the UK, 30 per cent of them were still on the road. 30 per cent! And how did the Metro fare in comparison? Well, there was a three in it. But nowt else. Yup, just three per cent of Austin’s baby had survived. Not only is this an incredible testimony to the Micra’s solidity, it’s also the reason why people still buy ’em. A new one is due next year, but you can be sure it won’t stray too far from the theme. This was Nissan’s first sales legend in the UK, and made the firm’s name here – literally. Why change a winning formula?

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interview Hyundai has gone from rags to riches under the scrappage scheme. Here, JAMES BAGGOTT talks to the ﬁrm’s UK chief about what made it work for the ﬁrm

SCRAPS THE WAY TO DO IT

is dealers hail themselves the ‘kings of scrappage’, so what does that make Hyundai UK MD Tony Whitehorn? Barack Obama? Simon Cowell? Well, take one look at the turnaround the marque’s sales figures have made this year and you would certainly think a higher force had been at work somewhere along the line. The Korean company has gone from zero to hero in the retail sales world, taking on the might of Ford and Vauxhall. What’s more, the Koreans have regularly beaten them to the top slot. The marque’s scrap star car is the city-segment i10. It’s leading the Hyundai charge and even managed to secure top slot in the retail sales charts in August – a record for the manufacturer. So why is the brand enjoying such unprecedented success as part of the UK scrappage scheme? Well, that’s down to one thing – a gamble; one helluva punt that just happened to pay off. Talking exclusively to Car Dealer Magazine at the firm’s modern High Wycombe HQ, smartly dressed Whitehorn has an air of confidence about him that only comes with results – and an order book that’s rapidly running out of pages. ‘We took a punt on scrappage,’ he admits, casually. ‘We ordered a lot of i10s before the scheme had even been given the go-ahead. Normally in a month we would order around 1,000 i10s, but in the run up to the Budget we ordered 7,000, and hadn’t sold a single one. It was a risk, but it paid off. ‘We did talk to the German distributor who had enjoyed great success with scrappage. Their i10 sales were up more than 600 per cent – it was phenomenal for them. They told us the key to success was to be prepared with stock. ‘Our view was that if scrappage didn’t come in then we’ve got the cars and just won’t have to order any for a while – but it worked.’ At the start of 2009 the manufacturer had scheduled to sell 10,000 i10s – now that total is likely to top 25,000. A huge increase, but it’s not all down to ordering enough cars – you’ve got to be able to sell them too. And it’s here, Whitehorn explains, that PR was key.

‘We took a bit of a gamble in terms of PR too,’ explained Whithorn, as we sit chatting on an Ikea-style bench sofa in the corner of his modest office. ‘On Budget Day we booked a studio and told all the radio stations and TV that if scrappage comes up we were there and ready to talk about it. ‘The minute it was announced we went straight into interviews. I did 17 on radio, BBC in the evening, breakfast TV, Radio Five Live – the lot. We were very prepared on the PR front, and PR is very important for this scheme.’ So, while other manufacturers were still deciding whether or not to take part, Hyundai was speaking to the nation, telling potential customers how they could get a car. Hyundai was the first brand to confirm its participation in the scheme, and

Name: Anthony Whitehorn Job title: Hyundai Motor UK Ltd managing director Age: 49 Family: Married with three children Drives: Grandeur Lives: Wokingham CV: Joined Rover Group in 1982 as a sales analyst. Joined Renault in 1984 as area sales manager becoming sales training manager in 1986. Joined Toyota in 1989 as national training manager, then ﬂeet sales and marketing manager in 1993, marketing programmes manager in 1995 and regional general manager in 1997. Sales Director 1999. Current position since November 2005.

crucially, tell its dealers how it would work too. ‘Here we took a bit of a punt again – this time on the details,’ admits Whitehorn. ‘No-one knew exactly how scrappage would work. But despite the fact the Budget was on the Wednesday we still invited our dealers to a breakfast meeting on Thursday morning and told them everything they needed to know about the scheme – as far as we knew – and that included prices. ‘We went to dealers with a price list on the Friday morning. That was a big risk. Ford even went public saying they weren’t even sure if they were going to do it. We didn’t. We went out there and told dealers the price of the cars, and confirmed we’d stand by that price. That meant dealers could deal that weekend on scrappage – and they went wild with it.’ Wild indeed. Hyundai has been blowing bigname rivals out of the water ever since. Whitehorn believes this continued success has been down to the simplicity of the marque’s offers. ‘What do dealers like?’ asks Whitehorn. ‘Well, they like a deal, but they also like something that is simple. And with our price list it was simple. Lots of manufacturers are good at making things complicated. The dealer network wanted to know what price they should advertise their cars at and to just get on with selling them. We told them and they did just that.’ i10 PROFIT Hyundai has been knocking out i10s at £4,995, including the £2,000 scrappage discount which has led to rumours the marque is making a loss on every one it sells. Not true, says Whitehorn, but close... ‘We make a few pounds – literally a few pounds – on i10s,’ Whitehorn explains, hinting that the actual figure wouldn’t buy a modest pub lunch. ‘Obviously that doesn’t cover the cost of the thing. But we see scrappage as essentially a marketing cost; our awareness now has just gone through the roof. ‘Our biggest issue prior to scrappage was if people were asked to name a car manufacturer Hyundai just wouldn’t feature. Now, all of a sudden, we’re there. >

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interview ‘I understand that scrappage has to come to an end, but what the government has to do is give the industry a soft landing.’ Hyundai UK managing director Tony Whitehorn ‘We have used scrappage as an opportunity for promoting ourselves and raising our awareness. ‘And it’s helped enormously. Dealers get a handling charge out of it, but more importantly it gives them the opportunity to have a customer in front of him to sell finance, warranties and other add-ons. And most importantly that customer is going to come back into that dealership in a year’s time for a service. ‘Our car parc has doubled this year compared to what we expected it to be – we were planning on selling 30,000 cars, but now we’re going to do more like 60,000. That means all of a sudden a dealer has got double the number of cars coming into his workshop in a year’s time – that’s where they’re going to make money.’ CONTINUE SCRAPPAGE The government has set aside £300m for the scrappage scheme – which equates to 300,000 cars – but the problem is that pot is rapidly running out. There are already calls from across the motor trade for the scheme to be extended and Whitehorn is pinning his hopes on the ‘tap not being turned off suddenly’. ‘Just look at car sales in July,’ he says. ‘They were up almost three per cent, but when you remove scrappage, the car market would have been down 19 per cent. That means it is still very fragile. ‘At the current rate the scrappage scheme will end the middle to end of October. That could mean we go from being up three per cent to down 20 per cent – that’s a massive drop. I understand that it has to come to an end at some stage, but what the government has to do is to give the industry a soft landing. ‘Look at ourselves, our dealer network has taken on 20 per cent more staff – when it ends, that could be a real hit to those dealers.’ So, if the Hyundai chief was in Alistair Darling’s shoes – and to be honest, who would want to be – what would he do to soften the blow? ‘The fact is, with the amount of VAT that is being generated compared to the government’s scrappage contribution, this is a self-funding scheme,’ said Whitehorn. ‘If I were Darling I would look at the fact this scheme is generating momentum in the economy, and it’s not costing me any money – there are lots of pros there. Why not simply reduce the scrappage allowance on offer? ‘Of course we’d love him to continue it, and from a political point of view we know there is

going to be a general election early next year, so he might run it until March – that would be a good political move. ‘As we reach the end of the £300m allocated by the government we will see a sudden rush of buyers clamouring to get their cars. You will get frenetic activity towards the end of September and some people might not get their car because the allocation has run out. ‘That’s why we are working with our dealer network now to put forward a post-scrappage scheme. This will look at what scrappage does and the benefits and capitalise on the opportunities that it produced. Post-scrappage needs to be an opportunity for those that couldn’t get a car under the scheme because their car wasn’t eligible, but probably wanted to. ‘It has been an awareness thing – people realised they could afford a new car, whereas

60,000

The amount of cars Hyundai now expects to sell in 2010

before they thought it was out of their reach. That is why scrappage has worked.’ It’s quite clear Whitehorn has been blown away by the success of the scrappage scheme for Hyundai. But what’s hard to understand is just how the brand has managed to take on big-name manufacturers and beat them – surely the bigger manufacturers should have had this scheme sewn up? And there in lies the problem, explains Whitehorn – the bigger the manufacturer, the harder it is to react to something like this. ‘When scrappage came in a number of makers had to refer their decisions to head offices in Europe,’ says Whitehorn. ‘We made all our decisions here in the UK. We didn’t have to refer anything to Korea or to Europe. That just shows how important flexibility is to us and I think this is key to our strength. ‘A lot of Hyundai dealers are independent, owner operators. We’re not in with a lot of big groups and with that comes flexibility. That’s where the dealer network has benefited. ‘Dealers have been able to expand their teams easily to cope with this demand and react to it.’ But with that flexibility comes the brand’s biggest weakness, says Whitehorn – the lack of clout some of the smaller dealers have. The MD admits that although small dealers

Whitehorn took a gamble on i10 orders for scrap; And there’s some exciting new cars ahead like the ix35

can react quickly, when the amount of cars they are selling triples there can be all sorts of funding problems that have to be overcome. FUNDING ISSUES ‘Big dealer groups find credit and funding facilities are much more easier to come by,’ says Whitehorn. ‘With small independent dealers, where historically in the month of September they would have been selling 50 cars and now they are selling 150, funding becomes an issue. It all creaks because you are a small independent. ‘That’s why regional groups are such a good fit for us. They have the funding and the processes that a larger PLC has, which is what we need. Our biggest weakness is that we don’t have enough regional groups.’ Whitehorn is certainly a man who knows what he wants. As you have already read on page 13 he is using the brand’s scrap success to ‘reconfigure’ his network – and that’s meant axing dealers that don’t meet his standards. ‘My pet hate is that some dealers misunderstand

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Why dealer profit levels are soaring W

ith rumours of cars selling for a loss, but the volume of cars finding homes rocketing, just what is the truth around Hyundai’s profit levels? ‘At the moment we’re making two per cent return on sales,’ Whitehorn tells Car Dealer. ‘In the month of June, which was really the first full month of scrappage, the Hyundai dealer made more than three per cent return on sales. ‘This year I would love to see the dealer network make three per cent return on sales. That would be phenomenal. If they can do that I think this franchise will be the franchise to have. ‘I think three per cent is absolutely achievable for this franchise this year. But to sustain that at two per cent would be good.’ Dealers anticipated a hard year at the end of 2008 and cut overheads accordingly – and Whitehorn believes that was absolutely the right thing to do. What’s more it has meant they are reaping the rewards all the more now. ‘When we went into recession dealers cut costs. They cut everything to the bone – and good for them – they were anticipating a hard year. But now their overheads have been cut down and revenue has increased. That’s put dealers in a very good position.’

Future of the motor industry… E

what a showroom is,’ says Whitehorn. ‘Some dealers think that a showroom is an opportunity to display as many cars as possible. Actually a showroom is a mini motorshow, cars need to be displayed so that they can be walked around. ‘A lot of dealers haven’t realised the benefits of aftersales either, and the profitability it can bring. Historically too many people have looked at it as the dirty part of the business, but actually that’s where they make the money. ‘If you can have good processes and a good sales environment in the aftersales arena, dealers can make a serious amount of money. Too often the best salesmen sell cars, actually one of your best salesmen should be your service advisor. ‘He can sell service plans, add-ons – and he can do this to every single customer that comes in. He can make £8-900 extra profit for that dealer per day. The dealer network needs to look at the calibre of their service advisors as that can make a serious difference to their profitability.’ These are obviously exciting times for Hyundai

and its dealer network. But with uncertainty over the end of the scrappage scheme, what is Whitehorn’s advice for his dealer network? ‘Capitalise on the opportunity now, but remember there are huge opportunities coming in terms of the new product in the future,’ he says. ‘What we have now is a market opportunity with scrappage, but what we have coming tomorrow is a product opportunity with Hyundai. ‘There’s a brand new Tucson coming out at the end of the year, two more MPVs next year, a facelift in terms of the i30. In the year after that (2011) we have a facelift i10, a brand new Coupe, a small coupe, a new i30 at the end of the year, a new D-segment vehicle – we’ve got six all-new cars coming out in the next 18 months. Plus around five or six facelifts. ‘We’re having the market opportunity now, so dealers can capitalise – but they need to get ready, because there is a product opportunity coming. These are unbelievable times for Hyundai.’ [CD]

Shock SMMT August Sales rise, p81

lectric cars are not the future of the motor industry, believes the Hyundai UK MD. With many manufacturers showing their electric plans for the future at the Frankfurt motor show, Whitehorn explained these and hybrids are simply a bridge to the industry’s ultimate goal – fuel cells. ‘The ultimate panacea is fuel cell – that is clearly where the industry is going. It’s achievable, it’s sustainable, and it is within people’s grasp. But when is it going to be ready, that’s the question,’ explains Whitehorn. ‘The answer is probably in the next 10 years. The issue is infrastructure and having hydrogen pumps around the UK. So fuel cell is where we are going, so now we need a bridge from the internal combustion engine we have today to that fuel cell. ‘I think it’s fascinating how manufacturers are going different routes. Toyota for example have gone down the hybrid route, others like Nissan have gone down the electric route, while others are trying to make the internal combustion engine as efficient as possible. All of these are bridges to fuel cells and have got to last about 10 years.’ So what does Whitehorn believe is that ‘bridge’? ‘Well, I think it’s making engines as efficient as possible,’ he says. ‘People are getting 60 or 70mpg out of these engines and CO2 levels are better than a hybrid. Hybrids are an answer in stop-start city centre driving, but on a long journey – the sort of journey many of us do all the time – they’re just not that efficient. ‘Hyundai has got a hybrid engine – the iBlue – which has been launched in America and Korea. America has really embraced hybrid technology. Prius does really well out there that’s why we launched our hybrid technology there. But in the UK, hybrid hasn’t taken off enormously. Why? Because they only really work in London. When you’re driving up the M1, actually a hybrid vehicle is not that good at all.’

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feature

Auction STATIONS Getting hold of used cars isn’t easy at the moment. Enter two former car dealers with one brilliant idea – Dealer-Auction.com Richard Aucock explains how the website works for buying and selling cars without leaving your desk

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oyota, in the past, has ranked among the most profitable companies in the world. How did it get there? Through analysing every opportunity, and then maximising them to the nth degree. This philosophy runs throughout the company – even to its car dealers. That’s guys such as Gavin Smith and Clive Colyer, who started working as sales executives at Toyota Leicester back in 1991. A decade alongside one another not only cemented a firm friendship, but also saw them both fully understand the Toyota way of doing things. Eventually, their paths diverged. Colyer moved on to become a used car buyer, specialising in sourcing main dealer stock, while Smith became new and used car sales manager. But then, pretty soon, the inevitable happened: Toyota methodology, plus experience across all areas of the business, oh and a firm friendship? Smith soon spotted a business opportunity… And this is how Dealer-Auction.com came about. ‘I realised there was massive potential for main dealers to maximise their trade car profit,’ he explains. How? ‘By exposing their trade cars online to a far greater audience than the handful of local buyers they would normally use.’ Smith’s big idea? Go nationwide. Such trade buyers ‘would never normally have the opportunity to buy and source these cars.’ But, ironically, ‘chances, are, they’re probably far better, more eager potential buyers than a dealers’ local contacts – ensuring higher profits per car.’ Thus, eBay for car dealers was born! The format works just like the world’s favourite online auction site: search for the stock you like the sound of, pop in a maximum bid, then wait as the days and hours tick down. If your bid is highest, you win. Bidding increments are in £100 jumps – until the last 12 hours of the auction. This is where you can indulge in ‘auction frenzy’, and chip up in £50 increments if you get outbid. Helping you calculate full costs for each bid here, the car’s location is clearly listed – so you can factor in collection expenses.

If yours is the winning bid, but the reserve on the car is not met, you can then liaise with the vendor through the site, to see if you can still strike a deal. Again, similar to eBay’s ‘second chance’ offer tool. Unlike eBay, though, explains Smith, there is far more vetting and pre-approval here. ‘We’re a trade-only site,’ he explains. ‘Only franchised main dealers and trade buyers pass our strict qualification tests – which really are a hands-on process. ‘Buyers can be confident the stock is being

‘There is massive potential for dealers to maximise their trade car proﬁt by exposing their cars online to a bigger audience.’ offered from another main dealer.’ With this vetting comes a list of guarantees. ‘We charge no listing fee, no monthly subscription, no tie-in contracts, operate a no-sale no-fee system and charge a set fee for any car that meets the reserve price.’ And the cost itself? £40. Yes, really. ‘We reckon it’s a no-brainer. For buying stock, we really feel this is the way forward. If buyers are prepared to travel nationwide, we appeal because we charge no buying fees whatsoever. Also, payment is made direct to the selling dealer, by whatever means their business accepts.’ All this is helping quickly establish the firm.

The site launched in January 2009. ‘Since then, we have sold nearly 3,000 trade cars,’ reveals Smith. ‘This includes more than 1,500 for a single main dealer group! ‘Indeed, another dealer group with an auctiononly policy trialled us at two of its branches. We were able to generate a substantial increase on trade profit, way above what they had been making at general auctions. We are now their first port of call.’ Smith hasn’t forgotten good housekeeping, either. Part of the reason online car auctions are becoming more popular is because car dealers’ trust in them is growing. Dealer-Auction.com is helping foster this by adopting the industrystandard vehicle appraisal form. ‘This is one with which the whole motor trade is familiar. There are full images and descriptions, while a complete condition report means they can bid with confidence.’ Further tidying up loose ends, Smith claims cashflow is increased. Now this IS interesting – but how? ‘Cars are paid for and collected within 72 hours of the auction closing.’ Simple! There’s also the benefit of cars moving off site fast – because they’re not hanging around waiting to go to auction… But the big Dealer-Auction.com difference comes with the personal touch. Yes, it uses cutting-edge online systems, but, says Smith, there’s more. ‘We actively remarket vehicles, to any potential buyers of that type of car. ‘Rather than just hoping that users login and access the site, we speak to EVERY user who has registered with us. Then, when a car is added, we email or call anybody we think might be a good buyer, to generate even more interest.’ It all makes so much sense. Join an auction site, find cars of interest – retailed by fellow car dealers in the trade – and only pay a fee if your bid wins. Your options extend nationwide, you can make clued-up business decisions fast… basically, just operate that bit more efficiently. Commonsense, efficient and money-saving? Yet another good Toyota lesson the guys behind Dealer-Auction.com have put to good use… Log on to the website to find out more. [CD]

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Leasing IS THE KEY

Want to unlock more revenue potential? Then you need to think about leasing. RICHARD AUCOCK meets a man who can help you on your way

etting to the top of Google is great. The car buyer in Sheffield will type in ‘used Ford Sheffield’, and there you will be, right at the head of the rankings. The leads this can generate are almost unquantifiable. And free! But getting there? That’s the bit that can cost. Such is the sophistication of the SEO market now, achieving good Google rankings means you have to call in the experts. And they don’t come cheap. Then there’s online marketing initiatives, again intended to boost your search rating – but again, potentially pricey. Fear not, though, says Gary Hunter. His firm, Compare Click Call, is to the rescue – and maybe just get you to the front page of those Google search results, without costing you a packet. The idea behind the new firm is pretty straightforward. Perfect your website to get best lead generation, rather than spending loads on online marketing. It does this by honing on certain industries key to you, to achieve top positions there. Such as, well, car dealers who offer leasing; indeed, the firm’s first major success is a tool to help dealers cheaply boost qualified leasing leads. ‘LeaseCarsDirect.co.uk is the first UK main dealer only comparison advertising website,’ says Hunter. ‘The economic climate forced us to think long and hard about it at the start of 2009; we knew we would have to find a niche in the market and a service that delivers. ‘We’ve spent a huge amount of time developing it, and reckon it’s a revolutionary product within the car leasing industry. It will deliver more enquiries, more business and, best of all, more revenue to car dealers.’ The idea behind LeaseCarsDirect.co.uk perfectly illustrates the Compare Click Call ethos: only one official UK franchised dealership from

each brand is allowed to advertise their contract hire and car leasing deals in a specified area, or territory. This guarantees local customers in each area will be delivered straight to their local dealer – with the option of searching for prices on the same car nationwide if they so wish. Simply put, this guarantees a good Google

£149

Price territories with LeaseCarsDirect start from for dealers

ranking for qualified customers. If someone types in, say, ‘lease Vauxhall Dudley’, chances are they’ll see the Compare Click Call dealer shown prominently. This car dealer will even get its own pull-out, separately-branded website, optimised for that area, listing only that dealer’s offers. ‘This is fully optimised for their local area, to attract local customers without seeing the

comparison site deals,’ says Hunter. Within that captive area, traders are guaranteed access to the people most likely to deal with them. These are high value leads, alright. All this comes without a pricey middle man, says Hunter. ‘We are strong believers that middle men who work for commission dilute product distribution, create confusion and unclear selling techniques, and ultimately cause inflated prices.’ That’s bad news for the customer – and bad news for you, as your models are then not priced as competitively as others in the market. ‘The best customer to have contact you is one who has searched for your product and made contact.’ Of course, the car buyer also has the option of extending the search nationwide. This is a bit of a price comparison gadget, but also allows them, if they’re willing, to travel to save more cash. And, for you, it means you can quickly find out

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‘We reckon it’s a revolutionary product within the car leasing industry. It will deliver more enquiries, more business and, best of all, more revenue to car dealers.’ LeaseCarDirect.co.uk’s development manager Gary Hunter

what your rivals are charging for leasing, too. Mind you, he adds: ‘To put yourself in the best position to deal once you have the attention of the customer, you must have the tools to complete and secure the deal.’ Compare Click Call has covered this base, too – this, says Hunter, is where the firm’s real difference lies. ‘We provide a team of experts to

ensure laborious tasks don’t distract the dealers from converting the sale. We also provide bespoke software, designed by ourselves, to manage the deals and customers efficiency.’ Hunter says if, for example, a dealer is constrained by the limited finance offers of their franchised provider, then Compare Click Call can offer access to independent finance, too. Eight finance firms have joined the company to offer quotations – and, as it’s directly operated by them, it means no broker fees to pay, either. So, again, no middleman. Oh, and there aren’t even any admin hassles. There’s an in-house support team on hand, to run these quotations… and help you convert more business! If the customer chooses to take the direct route, calls are fielded straight to the car dealer – that’s phone calls and emails straight to you, rather than through a middleman.

This insistence is great for you – and, Compare Click Call’s rules, stating that it’s only franchised dealers that can join, also boosts validity to the customer. In the leasing example, Hunter has also imposed strict advertising guidelines. This means the service will gain authority over the ‘back bedroom’ guys, too – which, in time, can only enhance its reputation with customers further. ‘Our dealerships are required to upload deals that conform to our advertising rules, using the “3+” system that’s recognised throughout the leasing industry.’ This insists that certain key facts on each leasing deal are clearly displayed. Hunter says the overall premise is to put the customer first. This drove initial planning for the site, and has resulted in something highly beneficial to both dealers and car buyers. Both are happy, which he reckons is an absolute win-win. Territories, he says, start at £149 per month. ‘And they are no more than £499 per month for any manufacturer or territory. This represents less than one sale per month to pay for the service – great value, I reckon. Indeed, add in the extra services, and it becomes a bargain!’ Don’t worry if you reckon your needs are particularly bespoke or specialised, either. ‘Our lead programmer is obsessed with contingency,’ jokes Hunter. ‘He has made sure all our systems can be adapted to any process.’ LeaseCarsDirect.co.uk is Compare Click Call’s first big car dealer project, but the firm is currently working on plenty more. ‘I never say never; we own some exciting domain names that would allow us to move into other markets, should we decide the time is right.’ It’s certainly worth speaking to Hunter, to see how he might be able to help you, too. ‘The first stage is to contact us and book an appointment for us to sit down and explain exactly what we do.’ Which is, in short, a great opportunity to get high in Google – and what better advertising could there be, than to sit at the top of search rankings for everyone looking for the specific deal you’re offering? For more details see LeaseCarsDirect.co.uk or call 0845 1700 888. [CD]

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IS YOUR DEALERSHIP MISSING A £400,000 OPPORTUNITY IN 2009? Castrol Professional’s Electronic Vehicle Health Check Programme will help drive traffic through your Workshop WHY DO I NEED EVHC? Typical findings during implementation uncovered inconsistency in a number of areas, which has lead to a significant missed profit and crucial touch point opportunity with your customers. Inconsistent • Application of Vehicle Health Checks • Reporting and pricing of additional work opportunities • Conversion of sold work • Deferred work follow up process

WHAT IS EVHC? New and used car sales down, pressure on margins, need to drive cost out of the business? Does this sound familiar? Probably. The focus on Aftersales profitability and Customer Satisfaction has never been greater, and yet you could be missing a fantastic opportunity to drive significant additional profits to your bottom line. In July 2008 Castrol Professional launched a next generation Electronic Vehicle Health Check (EVHC) Aftersales system following successful six month trials at a number of Franchised Dealers across the UK. Dealerships involved in the trials demonstrated a revenue opportunity in the region of £300,000 - £400,000 per annum* – directly attributable to the EVHC process.

Alone it is just a SYSTEM, embedded with the correct processes it is a SOLUTION The EVHC system is internet based for instant data sharing between aftersales staff, offers wide IT compatibility, and includes tools to improve upsell and conversion of deferred work. EVHC is guaranteed to deliver tangible benefits to your Dealership: • Improves Dealer profitability • Improves Customer Satisfaction scores through fulfilling Duty of Care • Improves workshop efficiency • Provides real time management reports • Schedules all work identified as deferred

Dave MacGillivray, Aftersales Manager, Kings Volvo Southampton

“In my service reception, I’ve had to recruit – yes, even in this recession! – two new outbound bookings staff to follow up deferred work because EVHC has so improved our capabilities. In addition, EVHC has generated sufficient retail activity in the workshop that it has more than absorbed the decline in PDI work caused by the downturn in new car sales. This is predominantly due to the deferred work we’re now successfully following up.”

All this in a simple to use system

Chris Knight,

In addition to this, Castrol Professional’s industry leading Consultants and Business Development team will deliver onsite training to ensure that workshop technicians and service staff can exploit the full functionality of the system from the first day of its implementation. We also provide ongoing support to your Dealership to ensure you are maximising your profit opportunity.

Make sure you take advantage of this profit opportunity and join the hundreds of dealerships that have signed up to Castrol Professional’s EVHC programme.

*Based on an average Dealership employing 10-12 technicians

CarDealerIss19.indd 56 70655 Car Dealer Mag Ad A4.indd 1

“Since implementing Castrol Professional’s EVHC system in January, I’ve been amazed at just how much additional work the system has generated. It’s been so successful, in fact, that we’re rolling it out across all of the sites in the Kings Volvo group. The results we’ve seen so far from EVHC show that the system has identified 24 per cent more work on every vehicle. Its real strength, though, has been in bolstering our deferred work follow-up procedure. The step up in efficiency and professionalism helps us further differentiate ourselves from the competition.”

Dick Lovett BMW & Mini, Bristol

For more information contact your local Castrol Business Development Manager or telephone 01793 452921

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9 13:49:41

profits

...in association with Really Good Domains

Growing YOUR PROFITS

It’s not as hard as you think... a few processes here and there, and giving your staff the incentive to upsell at every opportunity can reap huge rewards, explains Richard Aucock

f you’re selling less, how can you still make money? By selling more. Que? Ah, this is the beauty of upselling: maximise every prospect you deal with, by exploring every profit avenue going. Easier said than done? Not with the help of the experts, it’s not. The perfect illustration of upsales opportunities is lubricants. Anyone familiar with a car dealer’s

balance sheet will know that premium lubricants can be among the most profitable retail lines going. Note the word ‘premium’ here – that’s products such as those offered by Castrol. Lines that, simply, cost a little more to buy, but make a lot more when sold. David Watson is head of Castrol Professional Services, and says it’s full of opportunities for dealers. Don’t make the mistake of thinking we’re talking the full multi-litre oil change route here, either; you can offer something much more convenient,

to every single customer. How? By selling one-litre oil top-up packs which represent one of the most effective profit-generating activities for dealers. ‘With modern cars’ increased service intervals and vastly improved reliability, customers are visiting the dealership less frequently,’ explains Watson. ‘Yet, between services, cars WILL need topping up.’ Really, this should be an easy sell, he says: contrast to the customer the £10 top-up pack cost, against a £1,500 engine rebuild. >

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profits ‘Lubricant sales should be a precautionary purchase not an emergency one. By the time the light has come on damage has already occured.’

The sale is more likely, research shows, if a technician takes five minutes to show a customer how to check and top-up their oil. Indeed, adds Watson, correct handling of valueadded products like top-up packs can actually increase customer satisfaction, too. It’s easy to get staff on board. ‘An effective way to ensure total buy-in from frontline staff,’ he adds, is to ‘operate incentive schemes for aftersales staff, whereby employees are rewarded on a regular basis for identifying and converting genuine upsell opportunities on retail items.’ Scale it up, too: insist that every car you sell be sold with a top-up pack. You can soon see the potential of the profits… There’s no end of help on offer for incentivising this. Castrol, for example, last year ran competitions for aftersales staff, to tie in with Euro 2008. Prizes were awarded for legitimate upsell opportunities on profitable lines such as lubricants – something aided by prizes for customers, too. It’s something, confirms Watson, that Castrol is doing for the 2010 and 2014 World Cups, too… And if staff reckon they simply can’t compete with the big boys such as Halfords for upselling, consider this: upsale can be massively boosted if they set out strict approaches for aftersales, including full briefings on the reasons why. For example, why are petrol stations so big on oil sales? Because they’re distress purchases – in

Castrol’s David Watson response to the glowing red oil light which is lit to say the damage has already been done. Turn it the other way, says Watson. ‘Lubricant sales should be a precautionary purchase, not an emergency one. Many people don’t understand that by the time the oil warning light has come on, damage to the engine has already occurred, so it is often too late.’ It’s also worth exploring whether brands offer any more add-on schemes to push up aftersales. Castrol, for example, has its Professional Offer for dealers, which includes a web-based healthcheck system.

£300,000

Extra profit selling lubricants can add to your bottom line

This ‘allows aftersales staff to identify and capture upsell opportunities on every car that enters the workshop’. It’s all noted down, says Watson, and the customer advised. Then, even if they say they don’t want the work carried out, reminders will be set for service reception staff to drop them a line in the future, ‘thus ensuring minimal work is lost to the competition’. A perfect example of how upsales in one area can boost revenue for many areas of the business. After all, initial trials showed it could add £300k a year to a dealers’ bottom line…

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Staff need to spend time with customers explaining the benefits of buying quality lubricants But upsale opportunities are not just found in physical products. Black Horse says another way car dealers can compensate from declining returns is to boost finance and insurance sales. ‘They can go a long way to offsetting the lower volume sales of the past 12 months,’ says Black Horse MD Chris Sutton. SMARTER SELLING Immediately, this is a smart way of doing things. That’s because customers focus on driving down the sticker price of the car. Dealers can let them do this, safe in the knowledge that finance and insurance packages will help reimburse the difference. Only, though, if car dealers are fully aware

of the potential, says Sutton. ‘Dealers should ensure their sales staff are mindful of these add-on products when speaking to customers, and receive the necessary training in order to be able to maximise these opportunities.’ It’s also important to use point-of-sale material well. It’s no good just dotting a few shabby leaflet holders around the showroom, says Sutton. Much more is required; indeed, ‘the importance of POS material, prominently displayed, cannot be over-emphasised’. Again, as with Castrol, this is particularly so for big brands such as Black Horse, he says – car dealers can benefit from the positive association this brings, helping make the sale of finance

more likely. ‘The Black Horse brand is one of the most recognised and trusted brands in the market. Dealers’ association with us can give customers that extra confidence to make a purchase using finance.’ But, again, says Sutton, only if sales executives have been trained to best utilise such resources. Take a look; does each desk contain a tidy leaflet flyer for finance? Are they well displayed in the showroom? Is car finance kept AWAY from the areas where the brand association could be cheapened – such as, on the aftersales parts counter? Finance is a product, just like the cars themselves are. Manage it well and it really can work for you, says Sutton. Indeed, some are already benefiting: ‘There are some signs that the market is improving, and the mood among many of the dealers we speak to is becoming increasingly upbeat. ‘Used car sales in particular are performing much more strongly, and the scrappage scheme has also served as a much-needed catalyst to restore customer confidence and buying power.’ Upsales can work for you in other ways. Dealers cover themselves by offering used car warranties, explains Warranty Management Services’ Chris Brooks, helping them get around the six-month burden of proof law. However, smart dealers will see this as merely an open >

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Reaso

profits

door into further upsales. At minimal expense, for instance, why shouldn’t the customer extend this to a year, or two years? Comprehensive warranty policies such as those offered by WMS provide strong, saleable packages that really engage customers’ interest. ‘Most customers appreciate this,’ reveals business development director Eric Stone. ‘Car dealers rarely see negative reactions to such offers.’ It’s not just plain warranties the firm offers, either. Car dealers can upsell MOT failure protection to customers, which gives them up to £750 towards repairs on the failure sheet. This is particularly attractive to former new-car buyers, who may have switched to used models. The firm also offers service plans and other products – which, with ‘a wellstructured and consistent sales process, strengthened with high-perception added-value products, will help lead the customer to a natural conclusion to buy,’ says Stone. Several dealer principals have endorsed this, by using WMS products to plug the profit hole and increase the margin on every vehicle. One customer told Stone he could not emphasise enough the importance of his firm’s products for the profitability of his dealership – particularly through customer retention of repair and servicing. ‘It is vital that we keep the customer in the loop to present more products and ultimately a new vehicle,’ he said. ‘The cars bring the people through the

‘We offered sales executives a cash bonus for every service plan they sold. Now we’re selling 40 of them a month.’

Avondale Honda’s brand manager Andrew Hameer

door – but it’s the additional products that keep the customers and add to our bottom line.’ But to get a team totally drilled into the idea of upsales, you need to make sure it can be managed. It’s all very well doing great business on parts, for example, but if you have little control over stock levels, profit margins or availability, the system can soon descend into chaos. Result? Brassed-off employees, hitting brick walls in their efforts to upsale. DEALER MANAGEMENT That’s why you perhaps need to consider DMS add-on packages, such as Dragon2000’s parts module. This can monitor stock levels, check low stock lines, work out profit per part, see how long parts have been in stock, and if they’re low… all to help aftersales advisers get a better handle on the opportunities in the system. These can be allocated to individual customers or service jobs, giving a one-page view as to just what can be offered to each customer. Smart aftersales operators, for example, will look at a customers’ record, see what’s been allocated to the job –

know that other customers have welcomed the offer of associated parts, and consider offering those, too. It’s all about enabling your staff to help manage the upsales impetus you’re encouraging and make the process as simple as possible. But maybe the best way of handling upsales is to incentivise staff. That’s what brand manager Andrew Hamer, of Avondale Honda, did for service plans. ‘At the start of the year, we offered sales executives a cash bonus for every service plan they sold,’ he said. ‘It was a simple, straightforward incentive scheme, that directly rewarded them for each sale they made.’ Result? The firm is now selling 40 plans a month! ‘The effect this will have on aftersales is massive,’ says Hamer. ‘And it’s cumulative, too – it just keeps on growing. Then there’s the additional future sales opportunities of all these customers coming back… it’s a winner for everyone concerned. Particularly the customer, who gets a cracking deal on servicing bills.’ When done right, upselling really does work. Everyone benefits, your business expands, even the buzz around the dealer grows as executives do more trade and make more money. Give them the tools to do it, as Hamer proved, and they will respond. [CD]

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Reason 107 Ad A4:Layout 1

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When the future comes - you’ll find us there

Black Horse + Bank of Scotland = Double Strength Even though it’s been galloping ahead as the UK’s No.1 independent provider of point of sale finance for years, Black Horse has now strengthened its leading position even further. The business has joined forces with Bank of Scotland Dealer Finance, to create a stronger Black Horse, which offers more to dealers than ever before. Our combined sales force and support functions will take the cream from both businesses, to form a UK-wide team with unequalled expertise.

For our dealers, this signals the beginning of a bright new chapter in our relationship. Not only will they gain from our enhanced industry knowledge and premium levels of service, they will also continue to benefit from our ongoing pledge to look after the little things that matter.

As the clear leader in the market, you can rely on Black Horse to support you into the future.

Benefiting from our increased expertise is just one of over 100 reasons why you should do business with Black Horse. For more information please contact Mike McPartlin on 02921 386 338 or e-mail michael.mcpartlin@blackhorse.co.uk All customers’ applications for credit are subject to status and indemnities may be required.

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AT082_PrimeStock_CarDealer

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Run by dealers for dealers Est 1999

15,000 prime used cars for sale every month *

Relevant prime used stock ‘pops up’ from the toolbar instantly as it is offered by other dealerships across the country. * Based on average cars offered per month in 2009.

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Furthermore I could have sold it 10 more times in the space of 10 mins (obviously it was too cheap) well done Autotrade-mail.” David Green, TheMotorHouse@Prestbury July 09

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“This week alone, bearing in mind we are only on Thursday, we have sold 24 cars through Autotrade-mail and taken a profit out of each. Over the last 6 years we have enjoyed the speed and quality of the response by reliable dealers. Autotrade-mail.com is an elite portal where professionals meet to do business.” Colby Breegan, Dace Motor Company July 09

Over 4500 dealers subscribe to Autotrade-mail.com If you aren’t already one of them, we’re certain we can help you make more profit!

Call us on 08444 702513 for a FREE two week trial to experience the full range of Autotrade-mail subscriber benefits before investing in your £40 monthly subscription. The UK’s leading online real time used-car trading network CarDealerIss19.indd 62

4/9/09 13:52:47

right click

...in association with G-Forces

s Taking the iPod approach

to web usability

Apple’s iPod might not be the cheapest or the best MP3 player, but that hasn’t stopped it being a sales success. And that’s all down to its user interface, explains G-Forces

n a competitive market with thousands of automotive sites vying for attention, the key to turning visitors into customers is to make it easy for them to use your site, find what they want and, ultimately, contact you. When consumers are spoilt for choice, it’s this convenience that proves decisive. In a world driven by shorter attention spans the easier something is to use the better. No more War and Peace instruction manuals – if it’s user friendly and convenient product it will prove a winner. Take Apple’s iPod for example. Whenever there’s music in a portable sense on television or film it’s invariably accessed via the latest iPod. This isn’t solely due to a nice productplacement deal, it’s because this particular piece of technology is more popular than any other MP3 player and more of the audience are likely to recognise and associate with it. In sales terms it’s a monster; even during the recession Apple reported a best-ever quarter. Why? Not because it’s the greatest-sounding MP3 player on the market, nor is it close to being the cheapest. Its success is due to its user-friendly design. From touch-screens to the ‘wonder wheel’ and clear, bright displays, everything about it screams ‘use me’. Usability is proving a vital element online too. Websites designed with user-friendliness in mind prove more successful for both traffic and enquiries. Cluttered websites with poor

‘In sales terms the iPod is a monster. Why? Not because it’s the greatest, but it’s due to its user-friendly design.’ navigation are, thankfully, becoming thinner on the ground as they see significantly lower conversions. It’s comparable to high-street retail: In a packed, crowded shop with little space between the shelves, consumers feel hurried and hampered, far less likely to look around than in a bright and airy store where you have the space to move and browse at leisure. For automotive dealers, ensuring websites are user-friendly is key in turning visitors into enquiries and, ultimately, sales. However, usability goes beyond simply refraining from information overload. Usability is the measure of your website’s poten-

tial to accomplish the goals of your visitor. Every aspect of the site, from navigation to content, needs to be geared towards this. One of our clients, a large automotive dealer in Scotland, recently redressed their digital dealership with a strong focus on usability. Changes were made that ensured visitors could find what they were looking for easier and quicker across a clean and easy-to-navigate site with a call to action on every single page. Prior to the change, their online conversion rate averaged at just over one per cent. The minute the first batch of improvements went live, the conversion rate shot up to well over three per cent. The bottom line: Potential customers would rather head back to a search engine and find an easier-to-use site than trudge through a dozen pages before finding what they’re looking for. Prioritise usability, and those visitors will promptly become customers.

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4/9/09 13:53:34

...in association with Really Good Domains

dot com

...in association with Really Good Domains

Life after scrappage scheme There are already calls for it to be extended, but if it’s not have you got plans in place to cope with falling demand?

ith the news in August that the scrappage scheme is now more than 50 per cent subscribed, and remember this figure is before the traditionally busy month of September and the new ‘59’ plate has taken a big bite out of the remaining pot of money, the latest estimates indicate that early to mid-October will see the £300m government pot run out. Those calling for the scrappage scheme to be extended, including Lookers and Pendragon, could be disappointed as Lord Mandelson has remained tight-lipped over calls to extend the scheme. However, even if an extension is granted, car dealerships should look now to life after the scrappage scheme, and take on board some of the lessons that the scheme has taught the industry since Alastair Darling announced the plan back in April. With the signs beginning to look promising that the UK economy in early 2010 will start to strengthen as the country comes out of one of the deepest recessions in recent history, car dealerships should be putting into place strategies to improve sales, as the growing economy should lead to the land of opportunity for the canny car dealer! The car industry has changed, with the move to more fuel efficient and greener models now more apparent than ever. A case in point is the current Frankfurt Motor Show taking place in germany, with seemingly every car manufacturer now firmly on the ‘green car’ trail. Furthermore, looking at the make-up of new cars sold under the scrappage scheme, while undeniably the £2,000 discount was more

‘Even if an extension is granted, dealerships should look now to life after the scrappage scheme.’ conducive to smaller models, the trend is clear that the major sales volumes will remain for city cars and superminis, with customers looking to drive greener, more fuel efficient cars such as the highly popular Hyundai i10. Even cars like the Alfa Romeo MiTo, pictured above, have done well under the scheme. No-one would argue with the fact that the car industry has changed in respect to how customers are researching and looking for their next set of wheels. The recovering economy will witness a further shift in consumer behaviour away from traditional media to the online arena, and those

car dealerships that understand this unrelenting march will reap the rewards. As the end of September fast approaches, now is the time to finalise advertising for the rest of 2009 and beyond into 2010 to continue the momentum you have hopefully built up with the scrappage scheme and subsequently the number plate change. Websites such as ContractHireAndLeasing. com, SaveMoneyOnCars.co.uk and TheVan Website.co.uk provide the perfect platform to communicate with large, highly targeted audiences looking for leasing deals, new/ nearly new cars, and light commercial vehicles respectfully. Furthermore, the online arena allows advertising to be managed in real time, no more out-of-date adverts appearing in the local press and disappointed customers expecting something you can’t give them!

SELL MORE CARS

Phone 0161 482 7650 for your three-month trial

reallygooddomains “Number 1 in Marketing for Motoring...”

CarDealerMag.co.uk | 65 CarDealerIss19.indd 65

4/9/09 13:53:38

ATTENTION ALL

PRESTIGE CAR DEALERS... Bridford Financial Solutions are market leaders in the provision of prestige car finance to car dealerships.

As one of the fastest growing and truly independent finance brokers, working with some of the largest finance houses across the world, Bridford Financial Solutions provides bespoke finance for the acquisition of prestige motor vehicles.

Bridford Financial Solutions provide:

With over £200million of funding provided to date, we are ideally placed to manage the provision of vehicle finance for your customers.

Deal turnaround in 24 hours

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With rates from as low as 5.9% apr and dealer finance commission packages from 2.95%, can you afford to miss out on working with a completely independent vehicle finance company.

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CarDealerIss19.indd 66

4/9/09 13:53:40

...in association with Warranty Management Services

warranties

...in association with Really Good Domains

Profits from selling smartly In the first of a series of columns, WMS looks at why dealers need to perfect the art of upselling to help improve profit margins

s you’ll have read elsewhere in this issue, the secret to profits and increasing your bottom line is upselling. So, in our first column for Car Dealer, we decided to give you our take on the art of making every last penny out of your deals. When the margins in the metal are squeezed, the importance of selling quality products as part of a consistent sales process will undoubtedly help to produce a healthier bottom line. So why do so many dealers struggle to deliver in this vital area? Well, it’s true you need confidence, credibility and consistency in this arena – get all three under your belt and you really can pave the way for greater results, improved penetration and increased profitability. We were speaking to a general manager at a large dealer group recently and were pleased to report sales figures that showed warranty penetration for June was 100 per cent and gAP /RTI penetration had reached 80 per cent. This has led to a healthy additional profit per unit that was in excess of £195. He asked us: ‘In this current market who can possibly afford to ignore additional profit of around £60,000 per year from the sale of one extra product?’ And he was right – who can? I wanted to delve a little bit further, so asked him what this exceptional performance was attributed to? He was quite adamant it was down to the commitment of our regional manager in the area who had helped deliver the product and sales training as well as support when the dealership sales manager needed it. This highlighted to me the importance of being close to the figures as well as the people who have to create the interest and desire in the customer.

We always strive to be innovative and creative in product design and incentives that offer quality at fantastic value. So often the focus in a dealership can be on selling the car and this means that the other products are forgotten. You don’t need me to remind you of the age old saying: A customer has never bought anything that was not offered to them! WMS offers everything that you would expect from a leading warranty provider including electronic registration, invoicing and claims handling, but the role of our regional managers is vital. They assist the dealership sales manager in focussing the efforts of the sales team in producing more profit from each deal and help put in place a structured approach that is proven to deliver results. We are happy to be measured in producing

‘In this current market who can possibly afford to ignore additional proﬁt of around £60,000 per year from the sale of one extra product?’

results and not just collect policies electronically with no real added value to the dealers’ business. The F&I controller and salesman have to be confident in the product offering, the process, the price and the support structure – after all, if you do not believe in it, how would you expect the customer to buy it? Our underwriter is QBE and is recognised as a company with tremendous financial strength and expertise that means you will be offering a product from one of the largest global insurers with net written premium of more than £5bn and an S&P rating of A+. WMS has 30 regional managers and serves more than 2,000 dealerships of varying style and size. We are well placed to deliver drive and focus on the products that we have designed to suit your business. In many ways we like to think WMS managers will become unpaid members of your staff and deliver result-focussed training as well as report on penetration and profitability. We are continually looking for high calibre people to join our sales team as we are experiencing unprecedented growth as the market changes and customers see the increased benefit in protecting their vehicle which is a significant purchase. With customer retention and additional revenue created by service and repair work and asked where their success lies, many of our dealers would agree with us: It’s all down to upselling.

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4/9/09 13:53:44

£2.00 DOESN’T GET YOU MUCH THESE DAYS DOES IT? Many used car dealers consider Auto Trader as the be all and end all of their internet advertising. As the market leader it’s certainly a good place to advertise if it’s going to bring in sales. But is it enough? You want to spread your net wider and reach a bigger audience, but you don’t want to blow your entire advertising budget. What else can you do? Try BuyYourCar.co.uk. Eﬀective doesn’t need to cost the earth.

FOR LESS THAN THE PRICE OF A PINT OF BEER A DAY, YOU CAN PLACE YOUR ENTIRE STOCK ON THE BUYYOURCAR.CO.UK WEBSITE. What does that mean to you? Let’s assume you’re a dealer who holds about 50 cars in stock.

DBST b QFS DBMFOEBS NPOUI "-- ZPVS TUPDL b QFS DBMFOEBS NPOUI *Based on a dealer with a typical stock of 50 cars. Assuming a cost of £5 per week per car =

= £1,080 per calendar month

THAT’S LESS THAN 6% OF THE COST TO ADVERTISE ON AUTO TRADER. ALL stock your for on ly

£60 a month

Can you aﬀord NOT to advertise on a site that attracts 25,000 unique daily visitors and 3 million searches every month, but only asks you to pay less than £2 per day? That’s not per car, that’s £2 for all your cars - whether you have 10, 50 or 500.

Call Dave on 0845 644 8220 and make the easiest decision you’ll have all year. Cheers!

CarDealerIss19.indd 68

4/9/09 13:53:47

...in association with Vansunited.co.uk

LCV insight

Van’s a bit of all white! Ford releases special edition Transit SportVan as SMMT figures show LCV market is still down a worrying 44 per cent

ord has unleashed a limited-to-80 special edition of the Transit SportVan, costing £22,030. The frozen white model has massive 18-inch snowflake pattern alloys, twin exhausts and a full brace of spoilers. Even the wheelarches have been extended. And if that’s not enough, it has extra-wide bonnet stripes too. Powered by a 140bhp version of the 2.2-litre TDCi engine, the six-speed manual Transit 260 is strictly limited to 80 models. That, says Ford of Britain CV director Steve Kimber, is to really set it apart in the premium van market. ‘The first Performance Blue limited edition Transit SportVan has been an enormous success, with more than 1,000 sold in 18 months,’ he said. ‘Transit SportVan is all about style and individuality, and hits a sweet spot with many of our customers.’ If buyers aren’t quick enough to get a white one, Ford van dealers will point them in the direction of a black model with silver stripes, or grey variant with silver stripes. While new car sales may have recovered, news reaches us that van registrations still remain depressed. Only 13,830 vans were sold in July 2009 – that’s more than a 37 per cent decline on July 2008. The year-to-date picture is even worse, with van sales down more than 44 per cent. This is a huge decline which, says SMMT chief Paul Everitt, comes as firms continue to avoid buying new vehicles. That’s despite the deals on offer being almost unprecedented. ‘With truck makers and their dealers holding some stock, and Sterling still weak, there has seldom been a better time to do a good deal, especially with the 59-plate just released,’ he said. ‘Truck prices are bound to rise, probably quite sharply and quite soon, particularly for new-build models. We don’t expect any truck registration rises until those 59-plate trucks go

to work.’ At least used values have stabilised. Data from BCA reveals that average returns have remained around the £3,500 mark for five months running now. BCA boss Duncan Ward says this is good news. ‘Following the turmoil of last year, it seems a sense of balance has returned to the used LCV marketplace. While values have moved little over the past five months, this is by no means a suggestion that prices have stalled indefinitely. In fact, the current price levels could be said to be outperforming the traditionally slow summer holiday season market. ‘With the new September plate, it will be very interesting to see if there is another spike in values similar to that experienced in March when used values rose sharply.’

New Transporter revealed

olkswagen has released the first images of its forthcoming new Transporter range of van, kombi, chassis cab and window vans. Brand-new common-rail TDI diesels make it 10 per cent more economical than before, while the interior is fitted with creature comforts from the new Golf. The new Transporter goes on sale in January, with a choice of four 2.0-litre TDI diesels. All meet Euro V emissions standards, and there is a gearshift change-up warning light to help drivers be more eco-friendly. Not that the new models will be easy to spot. Changes outside are limited to restyled grille and headlights, with wind-cheating new door mirror caps.

CarDealerMag.co.uk | 69 CarDealerIss19.indd 69

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If you’re paying more than that for your car dealer website then you need to talk to us. Car Dealer Web Design has built a clever system that puts YOU in control of your website, not some geek It’s easy to use, easy to understand and in conjunction with our partners HPI Dealer Exchange lets you upload your stock to loads of sales channels like eBay Motors, Auto Trader and Exchange & Mart. Sound too good to be true? Well, it’s not. Get n touch to ﬁnd out how we can help you

E: info@cardealerwebdesign.co.uk BROUGHT TO YOU BY CarDealerIss19.indd 70

4/9/09 13:53:53

servicing

in association with the Motor Industry Code of Practice

Volvo goes mobile with new service

Richard Aucock chats to the team behind Volvo London’s mobile servicing initiative VOLVO has launched an innovative mobile service for London owners. The smart idea is taking the capital by storm, but how does it work? To find out, Car Dealer Magazine spoke to the man behind it – Volvo London director Frank Fisher – and he admitted customer convenience was a big factor. ‘Central London is incredibly congested, so having a Volvo technician come to you is a real boon,’ he told us. ‘We’re unique in what we can do, too – we really can do small repairs at a time and place of the customers’ choosing.’ Audi, he says, piloted a customer assistance scheme, but this was only for breakdowns. It’s all managed by the service adviser at Volvo London HQ. They book cars in one-hour time slots. If it’s a small job, they’ll use their discretion to ask the customer if they’d like to use the mobile service. Customers are allocated a time slot, and given the mobile technician’s telephone number, in case of problems or changes. As Volvo’s DMS runs ‘live’, even out on the road, logistics are far from the issue some may fear. ‘On board the mobile V70, we are able to fit small parts, we have a full web-based Volvo

Volvo London has launched a unique service diagnostics system – in fact, the only routine thing we can’t do is fluids.’ Fisher says the technician has even arranged to meet a mum on the school run, and fit a new door mirror while she waited for the kids! It’s a free service to Volvo London car buyers, or anyone who’s had a service there in the past year. Otherwise, it’s £49. That’s still cheap. How on earth does the firm make any money from it? Well, partly through the increased loyalty it brings. ‘If we do this, we make money,’ says Volvo London chief Tracey Perry. ‘But also,’ adds Fisher, ‘it frees up space in workshops. We are congested in London – if you can free up the space of six or seven cars a day, you’ve a big increase in productivity.’ Out in the sticks, he says, the financials probably wouldn’t stack up. But, in busy central London, it makes a huge amount of sense – both from a relationship and branding point of view.

Why I signed up... CB Motors Golder’s Green COLIN PARLETT is chief of CB Motors Golder’s Green, and believes the Motor Industry Code of Practice for Service and Repair is paving the way for independents to compete on equal terms with franchise dealers. ‘Manufacturers are beginning to realise that good independents are satisfying customers,’ he says. ‘Particularly owners of older cars, who can’t afford the prices a main dealer has to charge. Their hands are tied, because they need to invest in order to maintain high

Cracking the Code Chris Mason, explains why he’s seeing a boom come renewal time for members

standards… yet some brands are seeing retained values of older cars suffer, due to prohibitive oldermodel servicing bills.’ This is where independents could benefit, through working closely with a franchised dealer to, perhaps, take on servicing of older models on a semi-official basis. But, how to ensure consistency of standards? That’s where the Motor Industry Code comes in. Giving reassurance to franchise owners, car manufactures and customers alike.

Besides, he says: ‘It’s not hard for good garages to adhere to the standards of the Code. It’s below the standard I insist upon here, for example. But it does give all parties a huge peace of mind.’ Indeed, it could even lead to official licencing in the future. ‘Longer term, I believe the government is going to have to look at some form of licencing and accreditation for service centres,’ he adds. ‘Those who comply with the Code now could stand themselves in good stead.’

t is hard to believe that it was 12 months ago we launched the Motor Industry Code of Practice for Service and Repair and the team is currently busily engaged in processing our first annual subscriptions renewals – with more than 4,000 garages back on board at the time of writing. In the current economic climate most organisations look to see how they can save costs and evaluate what unnecessary expenditure can be cut. These are also exactly the conditions that produce clear winners and losers based on the decisions made at the top level. So we are delighted to see so many businesses renewing their commitment for a further year as a clear vote of confidence in the value to be gained by subscribing to the Code. If these garages see it as a sure-fire way of driving customers through their doors in these difficult times, it must surely make sense for others to recognise the benefit of using it to bolster their business too. While many will already have robust systems in place to handle queries, they still see value in using the Code logo as the hallmark for customers to look out for. I’ve stated before that it is not overly difficult to meet the requirements – the important thing is for a business to demonstrate its willingness to commit to doing the right thing by its customers. For just a £75 annual subscription, consider the edge it gives you in the eyes of the consumer. Priceless may be overstating it, but it’s certainly excellent value for money. Don’t be left behind – you have too much to lose. Subscribe today.

‘For just a £75 annual subscription consider the edge it gives you in the eyes of the consumer. Don’t be left behind. Subscribe today.’

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

trade_ad190x30a.indd 1

CarDealerIss19.indd 71

For more information see motorindustrycodes.co.uk

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

19/12/08 16:58:00 CarDealerMag.co.uk | 71

4/9/09 13:53:56

Nicholas Collier talks to the man who’s fast, flexible ‘instant’ building system is proving a big hit with dealerships...Ideal for these ‘tighter-belt’ times...

ith new vehicle sales and plummeting, dealerships focussing more than ever on ‘backend’ sales, help is at hand if you thought you couldn’t afford to expand and capitalise on the growing after sales market ...

I’ve been speaking to a guy who’s firm seems to have an answer more and more dealerships really like. They supply their range of ‘instant’ buildings as a fast and cost-effective alternative to traditional bricks and mortar constructions. “The reason they’ve been so successful is because they look and perform like a real building, but in a fraction of the time...And...For a fraction of the cost”, said Antony Hunt, Managing Director. “We supply them as valleting bays. Smart-repair units. Workshops. MOT stations, and we’ve recently supplied a brand new showroom to Kia, in Glasgow”, he said. One factor behind his success must be speed. Because the buildings he supplies are made here in the UK, they can have you up and running in as little as 28 days from the time you order – sometimes less. The other is price. They cost a fraction of a permanent building. Any size you want no ground preparation Another advantage is because their buildings bolt to the floor, (as opposed

CarDealerIss19.indd 72

to needing footings and foundations), they are classed as temporary. And so more and more councils are looking on them favorably in terms of planning permission. Therefore, this speeds up the process too, because it can drastically reduces the hold-ups and delays associated with applying for planning. They regularly put up brand new temporary buildings all over the country, in any size from 500 to 25000sq ft Designed to your own bespoke size and specification You can have your building designed to your own bespoke size and specification, and you get to choose exactly which colour you want your building clad in, which is ideal if you have a corporate colour theme to work to. As well as which, you can specify your building with any wall height up to 7mtrs tall. Which will be especially useful if you are working on lorries , coaches or buses. But maybe the best part is, as long as you have a level hard-standing surface, there’s absolutely no ground preparation needed. Warranted for up to 35 years Some ‘temporary’ buildings they originally used were made in 1984 are still going strong. “I’m quite surprised myself,” admits Mr. Hunt. “But they keep going and

going because they are tremendously robust. “Something else which has proven successful is our own scrappage scheme. It’s quite timely the government introduced their scheme for cars, but we’ve been doing this for three or four years now, with our buildings….I’m sure they stole the idea from me!!” he said.. So if you do already have makeshift or home made structure installed, he will arrange for his team of installers to remove it for you, ahead of having your new smart-space ‘instant’ building, installed.. Introductory Offer To find out more about how you can use a smart-space ’instant’ building to increase your capacity for a fraction of the cost of building, go to www.smart-space.co.uk/motors now... There’s a detailed explanation about your options to hire or buy a building, along with a link where you can request a free information pack. This also entitles you to take advantage of a generous introductory offer they have made available to Car Dealer subscribers.. Or, feel free to call 01827 330000 to discuss your ideas, or to arrange to go to Smart-Space’s premises in Atherstone, Warwickshire, to view their display centre of buildings, without obligation,.

4/9/09 13:53:57

en ge

nt ut ur m he

ift he to ng d-

an to of

.. ut g, e-

ner er

to go rir ut

Peering into the lives of the motor trade...

On The Spot Name: John Tordoff Age: 45 Work for? JCT600 Job title? Chief executive How is your business made up? We have 44 retail outlets and represent 20 franchises, all within a two-hour drive of our base in West Yorkshire. Owned by? JCT600 is 100 per cent owned by the Tordoff family. What was your ﬁrst job? Articled clerk at a local firm of chartered accountants. So what got you into the motor trade? I avoided it for as long as possible until the call came to assist with creating accounting systems in readiness for flotation in the late 80s, something we never actually did in the end. What was the ﬁrst car you ever sold? Coming from an accounting background I never worked in sales, so technically have never sold a car from start to finish. What’s your best ever deal? Buying VW York and Hull, two very successful and profitable dealerships. How many cars do you sell a month? Approx 1,500 retail and 500 fleet. What do you love about your job? The variety of it – no two days are ever the same. I love the taste of success and work hard to ensure JCT600 are successful in everything we do. What do you hate? Politics and being unsuccessful – I hate criticism, even when it’s justified. What’s your best sales tip? Create a resolute sales process – and stick to it every day. What car would you buy for £30,000 and why (but it can’t be one you sell)? Difficult. We sell the best cars in the world, there isn’t one car we don’t sell that I’d want to buy! What car would you buy if money was no object? A Ferrari 250 LM – the most beautiful car ever created. What would be your best tip for someone starting in the motor trade? Unless you’re prepared to work hard – don’t do it. And when you get into management, surround yourself with talented people.

‘Best tip for someone starting in the motor trade? That would be: unless you’re prepared to work hard don’t do it. And when you get to management level, surround yourself with talented people.’ Who do you look up to? Successful people – business leaders and sportsmen. Definitely NOT politicians. What is the biggest threat facing car dealers? A lack of talented people joining the industry. What’s your mobile phone ringtone? Philipe Massa’s Ferrari F1 car driving past me in the grandstand at the Monaco gP. What’s the ﬁrst record you bought? Marc Bolan & T Rex – Solid gold Easy Action. What magazines/newspapers do you

read? Yorkshire Post, Motorsport News and Autosport. What is the most expensive thing you’ve bought after your house? A Ferrari California. Have you got any ambitions? To run a successful company and be a great father, someone who my kids enjoy spending time with. And ﬁnally... what’s your motto in life and business? In life it would be ‘enjoy every day’. And in business: ‘We don’t want to be the biggest, just the best!’

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 | 73 CarDealerIss19.indd 73

4/9/09 13:53:59

auctions Thai takeaway for Portsmouth dealer

PORTSMOUTH car dealer Paul Taylor used BCA’s Live Online auction service to bag two motors from Blackbushe… despite bidding from the border of Thailand and Laos! The eager car dealer didn’t let the mere issue of 6,000 miles get in the way of his two soughtafter cars. The power of mobile internet allowed him to do the deals. It’s the most graphic illustration yet of the ‘buy from anywhere’ nature of online car auctions, says BCA.

RAA signs up for online auctions

MANHEIM has signed up the Retail Automotive Alliance to its Simulcast online auction service. This means 600 vehicles per week will be offered over the web, as well as at physical auctions in 13 Manheim centres. Manheim says it’s now transmitting Simulcast from more than 50 car auctions a week.

More than half of dealers say sales up SOME 53 per cent of UK car dealers have seen sales rise in the first half of 2009, reveal new Manheim findings. For 72 per cent of dealers, it’s been the scrappage scheme that’s led to the sales boost – and nearly half reckon the boom will continue. This is despite a majority of dealers saying the crunch has had a big effect on sales and why they’re stocking 85 per cent fewer cars. Stay up to date every day at CarDealerMag.co.uk

Get real with pricing, SMA tells car dealers Exceptional year and buoyant conditions has led to some setting unrealistic reserves

ar dealers should make sure they set realistic reserve prices for car auction stock, says the Society of Motor Auctions. SMA head Louise Wallis has warned dealers not to become complacent as the market may soon soften. ‘Sellers at motor auctions have enjoyed the best possible conditions over recent months, with reduced supply and good demand from buyers, resulting in high conversion rates and strong prices,’ she said. ‘Inevitably, the rising prices must impact on consumer demand, and it is likely that this will affect prices in the wholesale markets.’ Throw in more September part-exchange models, and it means far more choice and competition at car auctions. That’s why, says Wallis, car dealers should ensure they speak regularly with their car auction partner, to ensure stock isn’t just sitting around, unsold, losing money. ‘Re-appraise your stock if necessary, manage your inventory through the appropriate channel, be prepared to invest in pre-sale preparation and get it sold for true market value first time,’ she says. ‘This year has been exceptional so far, so it would be understandable if sellers got a little over-confident with their pricing. ‘But it is still critical to maintain good remarketing practice and accurate pricing, even more so if conditions are

The SMA has advised dealers to set sensible reserve prices at auction

‘This year has been exceptional so far, so it is understandable if sellers get a little over confident with pricing.’ to change.’ The advice comes in the same month BCA says used car values have risen for three full quarters – and reached a record price level. Never before has the average used car value topped the £6,000 barrier. Yet, in July, it stood at £6,028 – a three per cent rise on June values alone. This represents a massive 21.8 per cent increase on June 2008 values.

What’s causing it? Once again, the finger is pointed at supply and demand. This time it’s BCA director Tony gannon, who says demand for used cars is keeping prices firm. ‘Average values at auction have risen by nearly £400 over the past three months, despite the market now entering a period where prices have traditionally softened,’ he explained. That’s why SMMT figures showing the new car market is picking up too are so encouraging. ‘These are the cars that will feed the used market in the years ahead,’ he added. But they’re not going to filter through to soon, – meaning used prices are going to remain high for a long time yet…

Alfa Romeo 166 is UK’s ‘worst depreciating car’ ALFA Romeo’s 166 is the worst depreciating car in Britain, retailing just 14.4 per cent after three years! The staggering loss has just been revealed by Glass’s, which says the Alfa Romeo is by far the worst of a bad bunch. This gathering of cars was dominated by Rover Group models, though. The Rover 25, 45 and 75, plus the associated MG ZR, ZS and ZT, took the next three slots at the head of the list. You’re not even safe from well-respected

Japanese brands, either; both Nissan and Mitsubishi figured in the top 10, while the disastrous reputation of Renault’s Laguna II also ensures a lowly placing. The reason for these results is because either the cars or the company are now dead. Glass’s editor Adrian Rushmore said: ‘The used-car market has been offering these models for many years and they have been overtaken by a younger generation of cars with more stylish, modern designs.’

GLASS’S WORST-DEPRECIATING CARS: 1. Alfa Romeo 166 14.4% 2. Rover 45 / MG ZS 20.3% 3. Rover CityRover 20.4% 4. Rover 75 / MG ZT 21.3% 5. Proton Impian 22.0% 6. Mitsubishi Space Star 22.5% 7. Nissan Terrano 22.9% 8. Alfa Romeo 156 24.2% 9. Renault Laguna 24.3% 10. Cadillac CTS 24.8%

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Motor Trade & Commercial Insurance

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competition

Win... shampoo. Yes, really. W

ant to treat your valeting department, but can’t be bothered to spend a fiver? Or you ARE the valeting department and want some decent car shampoo instead of that washing-up liquid from Lidl the boss keeps buying. Either way, we’ve got something for you! We’ve clubbed together with car cleaning experts Mer to offer three dealerships a pack of car shampoo that’ll see them through a winter’s worth of road grime. You already know this, but Mer says: ‘When it comes to the requirements of modern motoring, the maintenance and protection of your car’s bodywork against the elements is of paramount importance.’ To combat harsh elements such as sun, rain, dirt and pollution, Mer has developed this Super Advanced Car Shampoo in a special high-tech cauldron (probably). Mer’s new generation of car shampoo is said to quickly penetrate the layers of dirt and traffic film present on vehicle bodywork, providing a deep, efficient clean and water-repellent finish to enhance protection from the natural rigours of driving. Sounds impressive doesn’t it. Really, all you need to

know about is does it do the job quickly? Yes. Enough said? We thought so. Anyway, as part of agreeing to give us a crate of shampoo, Mer also asked us to point out that Super Advanced Car Shampoo contains no wax or salt, and can therefore be applied to the entire exterior of any vehicle, including both vinyl and cloth convertible roofs. Neat, eh? Oh, and the shampoo is neutral in pH, fully biodegradable and can also be used to clean all windows. Shiny! The recommended retail price is £5.49 per 500ml bottle, but to be in with a chance of winning one of three packs of five bottles, you need to do one of the following: 1. Send an email with the subject title ‘I love Shampoo’ to james@blackballmedia.co.uk with your name and address (so we know where to send the prizes). 2. Or send a text starting with the word DEALER, then your name and address to 82085. Texts cost no more than your standard network rate. Further details on all Mer products can be found at MerProducts.com or by calling 01992 512680. We’ll pick the winners out of the hat (trilby) on October 2.

Fill up with the '56 plate at mfldirect.co.uk MFL

MY56 M FL 21st Aug ust 2009 on

L F M 6

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irect

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Get your 3 year old, single owner '56 plates early only at mfldirect.co.uk from 21st August

mfldirect.co.uk is unique in offering cars for sale 7 days before they are handed back. During August, for a strictly limited period, we are extending this window to 11 days giving you more time to buy low mileage, single owner, fully franchised dealer maintained cars. This means that from 21st August you can go online to www.mfldirect.co.uk anytime day or night to make the most of our huge variety of stock - and as usual you don't have to pay until the cars are handed back.

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76 | CarDealerMag.co.uk CarDealerIss19.indd 76

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