Car Dealer Magazine: Issue 2 by Blackball Media

Issue Two May 2008 www.cardealermagazine.co.uk

Driving the future of the motor trade

XKR-

Jaguar

New owners, new limited edition monster Supercharged V8 | 420bhp | £80k | and only 200 to be built

TRADING UP

SSANGYONG

The hunt for new dealers is on

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Two great franchising opportunities inside

SAN STORM

Make 20 per cent every Electric i onon the waycar!

4/4/08 11:04:05

0115 946 6370

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

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start

Issue two | May 2008

‘Mash your foot to the ﬂoor and the 135i Coupe hunkers down, lurching off towards the horizon.’

e all want to better ourselves. Getting bigger, growing our businesses, expanding – they have to be just some of the reasons we turn up at work every day. Mediocrity isn’t much fun, is it? That’s why this month we’re highlighting two fantastic franchising deals – offers that could potentially make you very successful indeed. SsangYong may have spent a few years in the wilderness; in your peripheral motoring vision – but not for much longer. There are big plans afoot. Since acquiring the brand in late December, Koelliker UK’s charismatic chief Paul Williams – the man who oversaw a 350 per cent sales increase during his time with Kia – is embarking on an ambitious rebranding. That means expansion and a hunt for new dealers. SsangYong aren’t the only ones. Chinese brand San, through its UK distributor Dream Machines, is also looking for dealers.

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The marque’s two-seater convertible Storm promises dealers £2,000 profit from every model sold. Yes, that isn’t a typo – they really are offering £2,000 per unit. And with plans for an SUV and a 650bhp supercar in the pipeline, San might just be one to get involved with now. Oh, and we haven’t got to the best bit yet – neither is looking for a huge outlet to take the leap from independent to franchised seller. Both are happy to work with you, whatever your size. You can find out more about San on page 15, read the road test of the Storm on page 24, and on page 43 get the lowdown on SsangYong. This month we’ve also been quizzing those specialist dealers who stick to selling one niche vehicle. One puts his money on supercars, another has placed his faith in that cheeky little Japanese convertible the MX-5 – their stock couldn’t be further apart, but their success is very similar. Read their story on page 33. Meanwhile, it’s been a turbulent month for Jaguar – and sister firm Land Rover – with Ford’s sale of the pair to Indian firm Tata

making headlines across the world. We’ve been trying to chat to some of the marques’ dealers to see what they think of the sale, but most wanted to remain tight-lipped – seems no-one wants to upset the new boss! Probably a wise move. One thing’s for sure, with Jaguar churning out desirable cars such as the XKR-S on the cover, we can’t help but think that, despite its past troubles, the big Cat’s a pretty good bet for the future. See page six for the full lowdown on the new XK. Oh, and we’ve also tried out the utterly brilliant 1 Series Coupe – it’s a mini 3 Series with twin turbos. We like. A lot. Happy selling…

James Baggott, Editor

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Issue two | May 2008

dashboard 06

JAGUAR XKR-S

Octavia wins again

WHAT NEXT?

Village people

SAN-SATIONAL!

COMPETITIONS

The fastest Jaguar since the XJ220 Skoda’s joy at Auto Express poll Reaction to Jag and Land Rover sale Benfield’s dedicated in-city site Why you should be a San dealer Win Jabra handsfree kits and DVDs

forecourt 18

135i Coupe

Volvo c70

th!nk

SAN STORM

18 ‘In a game of playground Top Trumps you’ve got to be pretty unlucky to be beaten with an F430 in hand.’

Small and perfectly formed A premium drop-top for summer Is the revamped electric car any good? ‘It’s got an air of the Mini about it’

features 27

Ferrari f430

DOT COM

THE SPECIALISTS

On the spot

Tried and Tested

SSANGYONG

Gadgets

USED CARS

Why it will become a cult car How to get it right online

The niche sellers making it big Caterham Cars’ Andy Noble quizzed The latest collection of top ideas How you can become a main dealer Steam cleaners, stereos and more Plus latest on Trading Places challenge

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05 4/4/08 11:05:06

agenda T

he glitz and glamour of motor shows deserves to be matched with stunning car launches. And the Geneva Motor Show last month didn’t disappoint. The huge halls were awash with pretty girls and cars covered in drapes as the world’s media gathered to take in the latest model launches. And Jaguar made no exception. Taking pride of place on the marque’s stand was this – the XKR-S. Billed as the fastest production XK ever produced, it features an incredible 4.2-litre V8 supercharged engine capable of punching a hole through the atmosphere to 60mph in just 4.9 seconds and on to 174mph. That makes the XKR-S the quickest Jaguar since the XJ220! Sounds superb doesn’t it? Indeed it does – so why then is Jaguar planning to sell only 50 in the UK? Making it exclusive certainly makes it more desirable, but we can’t help thinking the more you sell the merrier. The new model certainly has appeal. Equipment is plentiful with high-end fittings and advanced technologies abound. There’s an Alcon R Performance braking system with six-pot callipers and a Bowers & Wilkins surround-sound stereo system with 525W speakers. There’s even a clever exhaust system that keeps things quiet and refined below 4,800rpm, but when you throw the hammer down your aural pleasure is suitably catered for too with an enhanced V8 thrum. Revised exterior styling marks the S out on the road with a new front splitter, side sill extensions, rear spoiler and unique 20-inch alloys. So what was the thinking behind the £79,995 limited edition XKR-S? We’ll let Jaguar PR boss Raj Mann explain. ‘Jaguar’s vision for this project was to create a high performance sportscar based on the wellproven capabilities of the XKR,’ he told Car Dealer. ‘Available as a Coupe only, the Jaguar XKR-S has all the attractions and attributes of the XKR, but it is much more focused on performance – with a special dynamic package it is capable of reaching 174mph.’ There’s no doubt the XKR-S looks absolutely stunning. The Geneva launch was accompanied by a press mailing in the UK of a hard-back book which was of similar quality to the car itself. And the marketing of the car in the UK is equally plush – Mann explained a unique information pack has already been distributed to dealers. So to the big question – why only 50 in the UK? ‘We wanted to showcase the performance intent of Jaguar sportscars and felt that a limited edition such as the XKR-S was the right way to do this,’ explained the PR boss. ‘Given the unique nature of the product, we felt that 50 in the UK and 200 in total was an appropriate number.’ Mann described demand as ‘strong’ following the launch, but wouldn’t confirm to Car Dealer how many had been ordered. And he ruled out the chance of more than 200 being released even if demand was high. ‘The XKR-S will be built as a limited edition of just 200 for selected European markets,’ said Mann. ‘Germany and the UK are key.’ There’s no doubt the XKR-S is a stunning car. It’s not only beautiful to look at, but chances are it’ll go pretty well too – but, despite what the PR boss is telling us, we can’t help but think limiting it to just 50 is a mistake. At a time when Jaguar needs to be selling all the cars it can possibly get out the door to keep the bean counters happy, restricting one of the most desirable models it has ever launched could be seen as a backwards step. No-one wants to upset the new boss, p10

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Black Magic

The inside story on the fastest Jag since the legendary XJ220, by JAMES BAGGOTT

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JAGUAR XKR-S

Price: £79,995 Engine: 4.2-litre, V8 Power: 420bhp, 560Nm 0-60mph: 4.9s Max: 174mph Ins: Group 20

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07 4/4/08 11:05:39

dashboard

Octavia wins again Brough

Sub-Prime time

Are you protecting your repeat business interests?

HEN I took over as CEO of First Response, I closed down the retail side of the business and focused my team on our core competence of providing non-standard finance to our partner dealers. The reason for this is obvious – I don’t want to be in competition with dealers but want to create a true partnership. With the credit crunch biting, finance margins being squeezed and arrears likely to increase, I think those finance companies that have motor retail sites are likely to focus more attention on this revenue area to offset the impact on their finance income. During 2008 and beyond, we’ll increasingly see finance companies with retail sites trawling through their databases and aggressively ‘I’d advocate targeting dealer-sourced caution to customers with offers to dealers who change their existing car and buy a new one from send their one of their retail sites. applications to I’ve always advocated finance firms caution to dealers who with their own send their customer applications to finance retail sites.’ companies that have their own retail outlets, as I’ve always been uncomfortable with the risk that this creates for the dealer’s repeat business. I recognise the immediate need of dealers to maximise finance revenues if commissions available from these other finance companies are higher than our own, but I’ve often said that First Response could also offer higher commissions if we had an expectation of generating future ‘retail’ income from these customers. Last month I noted that some finance provider and dealer relationships were going to be stressed during 2008. This might have been an understatement. With competition hotting up to win customers, I would make the assumption that finance firms that have retail sites will target dealer-introduced customers during 2008. I would therefore suggest that dealers ensure they have their own pro-active marketing strategies and action plans to contact, re-appoint and keep the customers they have generated over the past few years, otherwise they may never see them again.

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

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Skoda celebrate for the second year running as the Octavia tops Auto Express Driver Power poll yet again AUTO Express readers have named the Skoda Octavia number one in the annual Driver Power survey – putting the Czech brand on top for the second year running! More than 32,000 members of the public voted in the reliability and satisfaction poll, making it a true reflection of how pleased people are with their cars. This year, as with last, Octavia owners are the happiest – and the latest report means that 2008 is the fifth consecutive year a Skoda model has finished in the top five. The survey asked respondents for their opinions on all aspects of car ownership. They were quizzed on reliability, build quality, running costs, performance and ease of driving – basically everything that contributes to a favourable ownership experience.

Skoda UK brand director Robert Hazelwood said: ‘Having toppled Lexus from the top spot in the Top Gear customer satisfaction survey last year, we’re delighted with the news that Octavia is the top car in this latest survey from Auto Express. This proves we’re the manufacturer of happy drivers. ‘We put customers at the heart of everything we do, from the design and quality of the cars that ensures they are easy and rewarding to live with, through to retailers who take pride in the service they provide throughout the ownership of the car.’ Auto Express editor David Johns added: ‘With great reliability and a strong set of results across our judging categories the Octavia will be tough to beat in next year’s survey.’

Sytner takes fourth in best companies poll

Tony the star at Vardy ball

SYTNER Group is celebrating taking fourth position in the Sunday Times 20 Best Big Companies To Work For 2008 guide. The guide is an annual assessment of employee satisfaction, and the motor retail group forced its way into the top category usually dominated by the financial services industry. Sytner Group managing director Gerard Nieuwenhuys said: ‘Our company aim has always been to be the best company to work for and the best company to do business with. ‘This is an incredibly strong message to live up to, but one that the whole team has embraced through an open and honest culture, within which all employees can flourish.’

PETER Vardy Ltd has held its first annual ball. Star of the year was Motherwell Vauxhall used car sales boss Tony Stevenson who picked up his gong from Sir Peter Vardy. The award was handed out to the employee who had made the biggest single contribution. ‘Tony’s leadership, passion and sense of fun are exactly in line with our culture,’ said Sir Peter.

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4/4/08 11:05:43

dashboard Finance firm backs motorcycle racer

FIRST Response Finance is backing an actor turned motorcycle racer in this season’s Triumph Triple Challenge. Andy Shim has been in a number of top movies such as This is England. The 24-year-old, from Nottingham has even acted alongside Bond baddie Robert Carlyle. ‘This would have not been possible without the help of First Response,’ said Andy.

BMw to consider an all-new brand

BMW could launch an all-new environmental brand within the next seven years. It has set up a new unit called ‘Project i’ which is working on a completely new car for driving in cities. BMW chairman Norbert Reithofer said: ‘The task of the Project i team is to present specific solutions. Whether this will require a fourth brand under Mini, will be decided at a later date.’

Keeping quiet

Dealers remain silent as land Rover and Jaguar sale is sealed JAGUAR and Land Rover dealers are remaining tight-lipped about the future following Tata’s £1bn takeover of the brands. Car Dealer approached more than 20 franchises for both marques to find out what they thought of the sale – but no one would go on the record with their thoughts. Off the record it was a different matter, as various dealers told us that the Tata takeover was great news, but admitted they had heard nothing from the manufacturers about the sale. One, who wanted to remain anonymous, added: ‘We’re predicting little difference to be honest. In the short term we are just cracking on with selling cars.’ A Land Rover press officer said there had been no edict sent down swearing dealers to silence, but that as each dealership operates as an independent

business, it was down to each dealer principal whether they wanted to speak out on the sale. Following the announcement that Ford had agreed terms for the sale Ratan Tata, chairman of buyers Tata, said: ‘We are very pleased at the prospect of Jaguar and Land Rover being a significant part of our automotive business. ‘We aim to support their growth, while holding true to our principles

of allowing the management and employees bring their experience and expertise to bear on the growth of the business.’ But just why are Jaguar and Land Rover dealers so against raising their heads above the parapet and speaking out – even favourably – about the deal? Presumably it’s a fear of saying the wrong thing and getting off to a bad start with their new bosses. Apparently the deal has not actually gone through yet, and its announcement initially forced Tata’s share price down by 7.3 per cent. Considering that its main successes have come in the budget sector, buying into these prestige brands must be seen as something of a risk for Tata, and although Land Rover is profitable, investors are concerned at Jaguar’s losses. Despite this, and worries about the decline of the luxury car market in the US, the deal was supported by the UK’s largest trade union Unite.

Is Ron oldest WRX buyer? COUlD 77-year-old Ron Billingham be Subaru’s oldest and most loyal Impreza turbo fan? Berkshire dealer Bulldog of Twyford thinks so, and with Ron taking delivery of the latest newshape Impreza WRX STI Type UK – his sixth sporty Subaru – there seems every chance he could hold the title. The sprightly septuagenarian who regularly canoes and occasionally cycles is one of the first new owners of the iconic performance flagship – now

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with a 300bhp ‘boxer’ engine giving a 155mph top speed and 0-60mph time of 4.8 seconds. He has previously owned limited edition Imprezas such as the WR1 and last year’s RB320 in memory of the late rally ace Richard Burns, also from Reading like Ron. The retired managing director of a furniture design firm said: ‘I’m no boy racer, but have been in the past. The new STI is so much smoother riding but still goes when you want.’

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4/4/08 11:05:48

‘new breed’ of women to buy Agila

Automotive training centre passes recruits AN innovative automotive training centre has seen its first recruits pass through the doors. Chloe Swycher, pictured above, was just one of the students to take the course. Kream aims to stem the flow of salespeople leaving the motor industry by boosting training levels. The academy is based in Wakefield, Yorkshire, and takes away the burden of training from motor dealers. A oneweek basic training course covers all aspects of car sales cycles and includes FSA accreditation. ‘If recruits don’t have the right training they can often find the industry a step too far,’ said Kream’s Nick Leech.

VAUXHALL’S marketing people think they have unearthed a new breed of women – ‘style conscious and confident who see their car as an urban accomplice’. Perfect, they say, for the new Agila. Barry Scott – not of Cillit Bang fame – is Vauxhall’s small car product manager. At the launch, he said the Agila will compete with the Fiat Panda, Renault Modus and Honda Jazz.

SLR smashes record

Mclaren SlR beats Manheim’s best-ever sale price as it goes under hammer for £160,500 A MclAREN Mercedes SlR achieved a record price for Manheim Auctions in Europe when it sold for £160,500 at the recent Prestige Sale at Manheim’s Colchester Auction Centre. The SlR beat the £158,000 paid for a similar car at Manheim’s Manchester Auction Centre in January. The sale attracted a huge amount of interest with more than 300 buyers registered on the day. The Mclaren Mercedes SlR was one of 45 vehicles at the first Prestige Sale to be held at

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Colchester’s four-lane facility. Other vehicles featured at the sale included two BMW 650i coupes, which sold for £30,200 and £31,500, a MercedesBenz Sl 5.4 AMG convertible (£31,200), a BMW M5 (£43,000), a Jaguar XKR (£49,400) and two Porsche 911s which sold for £48,000 and £57,000. ‘The atmosphere was really exciting especially when the Mclaren Mercedes SlR came into view,’ said Manheim’s Chris Cush. ‘To have broken the price record was a bonus.’

4x4 sales still falling as campaigners win pR war NEW research shows that while UK 4×4 sales continue to fall, British motorists are yet to be truly converted to the green cause. Figures based on more than 50,000 used car sales have been released by Carcraft, the UK’s largest used car hypermarket chain, showing that 4×4s – like the Range Rover, below – are the only category of vehicle where used car sales are actually falling. However, this doesn’t mean that buyers are turning green. Despite a falling demand for 4×4s, Carcraft also reported a rise in the number of larger engine cars (2,000cc and above) being sold in the same period. ‘It seems that people still want powerful cars, but they are less keen on being seen driving a 4×4,’ said Mike Walsh, sales director at Carcraft. ‘I believe this could be the result of effective lobbying activity by groups such as the Alliance Against Urban 4×4s, who appear to be winning the PR battle against manufacturers.’

Hyundai’s tasty finance deal for i10

HYUNDAI dealers will be offering the new i10 for just £99 per month with a low deposit and five year warranty to boot. All models come with air conditioning as standard and a wide choice of engines and trims. A customer who buys a mid-range i10 1.1-litre petrol Comfort could pay a deposit of just £1,250 and a first one-off payment of £254. This would be followed by £99 a month for 35 months. They will then have the option to make a final payment of £2,993 to own the i10 outright – or they can hand it back to dealers.

warranty Group’s gong for system THE Warranty Group’s customer relationship management software called ‘The Connection’ has been named CRM Implementation of the Year in The Times newspaper-backed National Sales Awards 2008. The online system is designed to simplify procedures for dealers by reducing both time and paperwork. ‘We aim to make our products as easy as possible to use for dealers,’ said a spokesman.

More Brits selling up as they flee UK AN online firm has found more people are selling their cars because they’re moving abroad. Car buying website Webuyanycar.com has found up to 100 cars a week are being sold by Brits fleeing the UK. ‘Over the last year we have seen a significant rise,’ said a spokesman.

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Burgess Just checking Fuel rises and confusing taxes equal tough times

ith the recent hike in fuel prices and other swingeing green taxes being once again thrust onto the UK motorist’s pocket, it’s perhaps no surprise that many within the used car sales industry are having tough times. Values of medium-sized cars and people carriers with petrol engines have been struggling, but this is now extending down to Focus/Astra-sized models and many of the smaller people carriers such as the Scenic and Zafira with anything above 1.6 engines. There’s plenty of higher mileage four, five and six-yearold premium end cars such as Audi A4, BMW 3 and 5 Series and Jaguar X and S Types that are struggling to find a home and values of these will be hit hard over the ‘The Budget will coming months. Add to this the everfurther depress confusing Vehicle Excise Duty bandings which many the value of buyers cannot get to grips dirty cars – with. Many of the above some may mentioned vehicles will even become fall into the higher bands, un-saleable.’ which could be another reason not to buy these. Most retailers and traders will be buying and selling smaller cars driven as always by consumer demand. This will put further pressure on larger-engined vehicle values as used car buyers downsize. This is why it’s more important than ever to value vehicles correctly. The Budget changes will further depress the value of ‘dirty’ cars. Some may even become un-saleable. This is not just a Chelsea tractor issue – vehicles such as petrolengined people carriers, saloon and hatches (including some hot hatches) will all fall into this bracket. Manufacturers will be forced into further changes, cutting down on their model range offering in the UK and diverting their ‘dirty’ cars to other markets such as China and Russia. On the flip side, green cars will be in greater demand leading to strengthening values. However, with all the doom and gloom the one area that will make your cars stand out from the rest is condition, and how well they are prepared. There is always a buyer for the best well-presented examples!

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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Village people

Dealer Benfield Motor Group has created a dedicated motor village to compete with growing out-of-town sites NORTH East motor dealer Benfield Motor Group has invested more than £200,000 in the creation of a dedicated motor village at its Portland Road site. The village will bring together the popular Kia, Nissan and Skoda dealerships at one site as well as trebling the size of the used and nearly new car sales facility. It will also be able to accommodate in excess of 80 vehicles from a wide range of marques, creating the largest used car lot in Newcastle city centre. A team of three additional used car and aftersales specialists have been appointed to work across the entire village. This team will bring expert advice to customers looking to buy used and near to new cars from a wide range of marques. Mike Clarke, general manager of the Benfield Motor Village (pictured above with MD Nigel McMinn), said: ‘We were looking to

create a facility within the city centre that could compete with the growing number of out-of-town motor retail parks and we think we have done just that. ‘The three brands all complement each other and the significantly increased used car facility, featuring cars from a wide range of marques, makes it one of the biggest in the area.’ The move comes at an exciting time for Benfield as the company continues to diversify its offering across the consumer and corporate markets. Mark Squires, Benfield chief executive, added: ‘The motor village represents a new style of dealership for the company and showcases our ability to adapt to meet our customers’ needs. The motor village marks our on-going commitment to investing in our existing 25 dealerships and expanding our used car offering across the group.’

Diamondbrite goes online JEWELULTRA has taken a leap into the future by turning its handwritten Diamondbrite guarantee form into an electronic format that can be completed online. Jewelultra is the first company to have evolved the guarantee system into an electronic set up. ‘We can now keep in touch with people who have had their cars Diamondbrited much more easily if they provide an email address. The whole system is much more efficient,’ said a spokesman.

Maserati looks to double its UK sales MASERATI wants to double its sales in the UK this year. Peter Denton, head of sales for Maserati GB, believes 1,000 cars a year are possible once the brand can rid itself of a perception of poor quality and re-sale values. ‘I’m not sure where that perception came from,’ he said. ‘We are working hard on pushing up our residual values and according to Glass’s we are now on a par with the Mercedes S500.’

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20 per cent profit!

Tew Net gains

Become a San distributor and make up to £2,000 per unit SAN distributor Dream Machines is promising new dealers an impressive £2,000 profit on each Storm model they sell! The sole UK importer for the Indian brand is on the hunt for 10 new dealers and is promising returns of 20 to 25 per cent on every model sold. Dream Machines boss Tony Waite says the two-seater Storm convertible is an amazing buy – and he’s found most customers are purchasing the £9,995 cars on a credit card. ‘We recently took out an advertorial in our local paper and, despite its somewhat lowly distribution, we received a large number of leads which resulted in four sales in a week,’ explained Waite. ‘The buyers seem to be either young people, probably part or fully funded by the bank of Mum and Dad, or over 45s who just fancy a bit of top-down motoring without the open cheque book prices usually associated with soft tops.’ The Storm – road tested on page 24 – features a 65bhp 1.2-litre Renault petrol

engine and Group 7 insurance. Dream Machines are now on the hunt for new dealers and are promising healthy returns on each Storm sold. There are also serious plans to expand the range, with an SUV costing just £13,000 due next year and a 650bhp – yes, 650bhp – supercar costing £40,000 in late 2009. All the cars, including the Storm, come with a full two-year manufacturer warranty and an SVA certificate of approval. ‘We are seeking to appoint 10 dealers this year and another 10 next year, culminating in a 50-dealer network within five years,’ added Waite. ‘The initial locations will be the major conurbations throughout England, Scotland and Northern Ireland. The dealers will probably fit into the smaller independent types, rather than a group, though we have no problem dealing with either.’ If you’re interested in becoming a San dealer log on to www.stormcar.co.uk or call Tony Waite on 01435 868456.

Convertibles in demand TWO new prestige compact convertibles will establish a benchmark for drop-top residual values, says EurotaxGlass’s. When the BMW 1-Series – pictured – and Audi A3 cabriolets reach the second-hand market later this year, they are expected to command exceptionally high prices relative to their original cost new. Initial demand for the German duo could see used examples selling for near-list price, just as is the case for ultra-exclusive convertible sports cars from the likes of Aston Martin and lamborghini. Even as supply of second-hand units increase, EurotaxGlass’s forecast remains strong, with the diesel models expected to hold on to 50 per cent of their list price after three years and 60,000 miles. ‘There is nothing else like the BMW

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or Audi on sale at present,’ said Jason King, head of market intelligence at EurotaxGlass’s. ‘Since the demise of the Volkswagen Golf, the market has lacked a small, desirable, fabric-roof convertible. ‘Many manufacturers have opted to launch coupe-convertibles with folding hard roofs instead.’ 135i Coupe road test, p18

The key is keeping it simple for results on the internet

ast month I discussed improving the photos on your website, but the best pictures in the world are worthless if the rest of the site is a turn-off. There is one golden rule in our business – keep it simple! One of my pet hates is when I come to a website from a search engine such as Google to be greeted by a button stating ‘Click here to enter’. Why? I’ve already chosen to enter your site via the search engine, why do I now have to do it again? No introductory flash movies, no buttons. All you need is an easy-to-navigate home page where potential customers can find what they want quickly. The web industry knows that if a site takes more than seven seconds to fulfil customers’ needs, ‘Don’t tart up they will go elsewhere – you don’t have long… your site with Your homepage is your pictures of 911s, shop window just like on the High Street, where the R8s and Aston only obvious businesses Martins unless that don’t make much that is actually effort with their windows what you sell.’ are sex shops and funeral parlours. Everyone else carefully dresses their window to catch the customer – you must do the same online. On one site recently, a large used-car business, I couldn’t find my way to the used car section – trying to get there was a huge turn-off. If you sell used cars, ensure that your site takes the user straight to them. And don’t – this is another pet hate – tart up your site with pictures of Porsche 911s, Audi R8s and Aston Martins, unless that is what you sell. Take a look at another site I recently found – www. burnettcars.co.uk is clearly not a large outlet with only around 20 cars to sell. But on this good-looking site one click takes you to the showroom where every car on sale is displayed with pictures and a neat video. Compare this with www.stratstone.com, from one of the biggest dealer groups in the UK, and incidentally one of the better websites around – but it actually takes three times as long to get to the used car selection. The internet is a great leveller – online, little Burnett Cars has an equal, maybe better, opportunity to sell its stock as does the might of Stratstone. And you could too – if you keep it simple…

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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dashboard

Henstock Auction stations The colour of money and what they mean to buyers

e’ve had a lot of interest in some recent research we published on the predominant colour of used cars. When BCA analysed the colour spread of more than 125,000 vehicles last year from a huge range of sources, we recorded hundreds of individual colours ranging from Antique Green to Zambesi Silver. And while silver is often quoted as the most popular shade for new cars, when it comes to used cars. Would it still be the predominant colour? Once we had sorted the hundreds of shades into broad constituent colour groups, blue was the most popular colour, but only by a fraction of a percentage from silver. In fact these two colours each represented around ‘There are no a quarter of the sample, with red and black both hard and fast representing around an rules, but eighth. The other large generally the colour groups were white and green at 9.5 and nine colour needs to per cent respectively and match the type grey at 6.7 per cent. of car.’ Other colours such as gold, mauve, beige and orange made up the balance, each representing less than one per cent. But does colour matter for used buyers? We know it is a critical factor for new car buyers, yet our research shows it doesn’t rate nearly as highly with used car buyers when it comes to making a purchase decision. Our annual Used Car Market Report shows that when motorists chose their last used car, price was the most important factor, with ‘make/model’ and ‘low mileage’ the next most important factors. In the wholesale market, however, whatever the age and mileage may be, the most important factors are condition, specification and presentation. Colour becomes important to professional buyers once other factors are satisfied and while there are no hard and fast rules, the colour needs to match the car. As used car buyers cannot specify the colour they want, they choose the best combination of model, specification, age, mileage and condition for their budget and get the most attractive colour they can. Good colours on used cars will always attract a premium, but remember beauty is always in the eye of the beholder!

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.

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Mobile laws failing Drivers are still talking on their phones behind the wheel despite jail threat

THE threat of a prison sentence isn’t enough to stop people picking up the phone while driving. That’s the shocking finding of a report commissioned by handsfree kit specialists Jabra. The survey found that 93 per cent of drivers were aware that talking or texting while at the wheel can be deemed as dangerous driving and result in a twoyear jail term. Yet still 75 per cent of them choose to ignore the law as they believe they won’t get caught! ‘Our survey highlights a worrying trend,’ said Jabra’s Andrew Doyle. ‘The government has stepped up multi-media advertising this year with £1.5m being spent on the TH!NK Mobile campaign warning of the consequences of using a mobile phone at the wheel, yet people are continuing to ignore the law. ‘The cost of a handsfree kit is definitely not a factor considering some can be had for as little as £20. Neither is the fear of technology as basic models are very simple to use – there’s simply no excuse for not driving safely.’ Reasons for answering the phone behind

the wheel cited in the survey included ‘I just couldn’t miss a call’ from 24 per cent of respondents and ‘I don’t know anyone who has been caught’ from another 12 per cent. We know car dealers are often in cars travelling from A to B and that it’s very hard not to answer the phone when it could mean business – so we’ve teamed up with Jabra to give away four cool handsfree kits. Worth £59.99 each, the Jabra BT8040 – pictured above – offers the latest digital audio technology in a tiny package. The on-ear design features six hours talk time, 200 hours on standby and digital signal processing for superb sound quality. For your chance to win one simply send your name, address and telephone number in an email with the subject title ‘Jabra comp’ to james@blackballmedia.co.uk by April 25.

BlatSafe driving aids up for grabs too! IF you’re anything like us, you’ll enjoy nothing better than a cross-country blast in an entertaining car. There’s nothing wrong with stretching a car’s legs on open roads, just as long as you do it safely. The BlatSafe DVD aims to improve your skills behind the wheel from the comfort of your own sofa. It is aimed at drivers who want to improve their prowess on the road using tried and tested driving skills.

BlatSafe is quick to point out that the road is no place to be exploring the limits of your car – and instead aims to arm viewers with life-saving planning and anticipation skills to make every drive more enjoyable. The DVD costs £17.99. For your chance to win one of five we have to give away simply send your name, address and telephone number by email with the subject title ‘BlatSafe comp’ to james@blackballmedia. co.uk by April 25.

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d a o r e h t r fo Now there’s an alternative to the fat-bottomed 1 Series hatch. JAMES BAGGOTT finds the Coupe to be small, perfectly formed and quite fiesty...

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BMW 135i Coupe £29,745

hoever thought up the marketing strategy that got everyone thinking smaller was better was very clever indeed. There was a time when everything launched had to be bigger to be considered an improvement: super-sized this, over-sized that – things were getting beyond control. But then some clever advertising type – and

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it could only be an advertising type – decided that enough was enough; we no longer needed to increase the size of new products to make them more appealing, but instead had to shrink them. One thing’s for sure – it didn’t start in the car world. Mobile phones might currently be the size of thimbles and MP3 players so thin

they’re in danger of blowing away, but cars are putting on pounds faster than an American at an all-you-can-eat buffet. And a lot of that’s got to do with Europe. Crash test requirements and safety systems have piled the weight on modern cars – just take a look at a current VW Golf GTI and its MK I counterpart and try telling us it hasn’t been the >

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forecourt victim of middle-age spread. But there are some new cars that have taken the size zero approach before hitting the market. Just take a look at the BMW 1 Series Coupe. Ok, so it might still look a little podgy in places, but compare it to the bloated 3 Series and it starts to make sense. It’s smaller, perfectly formed and, in the metal, positively gorgeous to look at. Pictures just don’t do this little BMW justice. It’s very hard to see the purposeful stance it has on the road on paper and the scaling is simply spot on. It’s a mini 3 Series plain and simple – and that’s definitely a good thing. The body shell may be smaller proportioned, but the 1 Series is certainly not lacking under the bonnet. Wedged between the front wheels of the flagship model is a potent 3.0-litre twin turbo powerplant producing a whopping 306bhp. That’s enough to propel the 1 Series to 60mph in 5.3 seconds – just half a second shy of an M3! Top speed is limited to 155mph. That engine is simply superb on the road, with real shove on offer throughout the rev range. Mash your foot to the floor and the Beemer hunkers down, lurching towards the horizon. It’s all matched with a soulful soundtrack, a deep rumble from the exhausts really makes you feel like you’re driving something special. And it’s planted. The steering is full of feedback and perfectly weighted for spirited driving; the suspension firm and set up for feel; and the sensation of grip, of really knowing what the rear wheels are doing, is always prominent. Switch the electronic safety aids off and the 1 Series can misbehave with the best of them – the rear wheels breaking grip with little provocation out of damp roundabouts or junctions.

‘The 1 Series can misbehave with the best of them – the rear wheels breaking grip with little provocation out of damp roundabouts or junctions.’ Inside it’s typical BMW. German in its efficiency and with clean lines, it’s a classy place to be – shame then that they’ve added the iDrive interface for the controls. Yes, it’s taken more than its fair share of criticism, but that’s for a reason. It just isn’t that easy to use. You do get used to it over time, but why should people have to ‘get used’ to tuning their car’s stereo? Good design is easy to use from the start – and that’s never more important than when creating a car control system. Specification is suitably impressive for a car costing nearly £30,000. Central locking, alarm, alloy wheels and air conditioning are all stand-

ard, as are electric mirrors, windows and CD player. Extras such as sat nav will set customers back £1,460 and leather interior is a not entirely unreasonable £965. So just who’s going to be buying the 135i Coupe? Good question. We’d hazard a guess at city dwellers who like the size of the 1 Series hatchback but can’t quite get their heads around the fat bottom behind. The Coupe is certainly slicker but at £30k it’s well into 3 Series money. In fact it’s about a grand-and-a-half shy of the 325i. One thing’s for sure the 135i buyer’s going to have to be pretty determined it’s what they want to sign the order form.

BMW 135i Price: £29,745 Engine: 3.0-litre, twin turbo Power: 306bhp, 400Nm 0-60mph: 5.3s Max: 155mph Ins: Group 17

The blistering performance and inspiring handling combine to make the 130i a perfect package. It’s diminutive proportions and BMW brand pedigree are only added benefits. Pricey though.

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ToP claSS

Premium drop-top for the summer? STEWART JAMES checks out the C70

OU might be staring out of your showroom window at rain falling in stair-rods but the fact remains that summer is on the way, and the thoughts of many car buyers will be swinging towards a convertible. We all love droptops in the UK and as a result there are plenty to choose from whichever sector you buy in. So how about an upmarket coupe-convertible? Chances are you’ll be thinking Audi, BMW, Mercedes – you probably won’t consider Volvo straightaway, but as Car Dealer recently discovered, that would be a mistake. For the past couple of years, Volvo has offered a very effective coupe-convertible in the form of

the C70. And because it is not the obvious choice, this car comes with that desirable extra of a good deal of exclusivity. But it’s much more than that, as we found when re-acquainting ourselves with this wind-in-the-hair machine, admittedly in the cold of a British winter. Volvo’s suits describe the C70 as two cars in one – convertible and coupe. The transformation is achieved by means of a complex folding metal roof, with three separate steel sections reclining electrically back into the boot in around 30 seconds. It’s an effective unit, giving the car very clean cabriolet lines when retracted and with the roof up adding rigidity.

Engine choices range between a 2.4-litre petrol motor of 168bhp, the familiar 2.5 turbo T5 unit, these days offering 230 horses, and a pair of diesels, these being the 2.4-litre 134bhp unit and the D5 of close to 180bhp. Our test car came with the T5, and what an engine it is, a high torque curve ensuring plentiful acceleration, while never dipping below the smooth refinement that has become a hallmark of recent Volvo products. Overall this is a well-built car and a serious rival to the likes of BMW’s 3 Series, the Audi A4 and Saab 9-3. As a summer drop-top that’s a little different to its rivals and arguably better value, it certainly fills the bill.

ducks_car_dealer.pdf 01/04/2008 11:15:38

Who takes care of the Independent Used Car Dealers?

CMY

Solutions for GAP Insurance, PPI, Motor Warranty and Tyre Protection from one of Europe’s largest insurance companies. To find out more Call: 07920 268748 email: ird@mapfreassistance-uk.com The Insurer is MAPFRE ASISTENCIA Compañia Internacional de seguros y Reaseguros Sociedad Anónima (”MAPFRE”). The administrator is ABRAXAS Insurance Administration Services Limited (which is a wholly owned subsidiary of MAPFRE) authorised and regulated by the Financial Services Authority.

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he electric car is a concept that fills many a motoring person with revulsion. Thoughts of trailing cables for charge-ups lasting hours on end, and then running out after no distance at all – surely a non-starter? Five years ago maybe. It was back then that an electric two-seater called the Think was first introduced to London. It had the backing of Ford, and London Mayor Ken Livingstone welcomed it with open arms. But it was horrible to drive, its range never got close to claims, and it looked a joke – not surprisingly it flopped. Half a decade later and Ford spent a lot of money on a complete redesign of the car. Then the American giant realised just how cash-strapped it was and sold the project to a far-sighted Norwegian group. At this year’s Geneva Motor Show, the Think made its return – to a world where economy and emissions are at the forefronts of buyers’ minds. The car looks a whole lot better, having gained the benefit of Ford design input.

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The electric car is back and this time it might just work, says STEWART JAMES It’s nicer to drive too, with a proper chassis. Crucially, the question of range has been addressed – doubled to between 100 and 125 miles. The car really will travel this far on a single charge and that’s not even considering the next generation of lithium-ion batteries, which will be fitted to the UK cars and go even further. And because it’s a zero-emission vehicle, the Think not only pays no road tax, but no congestion charge either. Transport for London even provides free recharging stations. The recharging process is still a major consideration. A full charge takes around eight to 10 hours, and is carried out simply by plugging the Think into a standard three-pin plug socket. The maker is even in negotiations with a major supplier of street furniture with a view to incorporate charging points in street lamps, which owners will be able to acquire juice from using a smart card.

So the drawback is? The price. When the Think goes on sale at the end of the year it will cost around £14,000, which is not cheap any way you look at it. There will also be a battery lease fee of around £100 a month. The batteries only have a life of around three years and the cost of replacing them would normally make the car worthless. With this scheme replacement is free. If you charge the car during off-peak times you will be able to clock up 10,000 miles of motoring for around £50, but you’ll want to know what it’s like to drive. Well, it’s swift – the instantly-at-full-power electric motor gives the car a 0-60mph time of 6.5 seconds, and makes the little device great for nipping in and out of busy urban traffic. It’s easy to drive too, with very light steering, and most weirdly of all it makes virtually no noise – paint it black and it would be a stealth car!

CarDealer

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COS0

Grow your business with the award winning new SsangYong range. ‘It will work for you’ Under new ownership, SsangYong in the UK are relaunching the brand with a new award winning range of competitively priced 4x4s and MPVs backed up by a multi million pound marketing campaign. To support this investment they are looking to recruit entrepreneurial dealers who can help form part of a successful national sales network. Become a SsangYong dealer and benefit from: t An innovative dealer development programme that will help you make more, sell more and deliver a better customer experience t Low cost of entry t Business driven achievable franchise standards t Extensive local marketing support including a new dealer web portal t A full programme of after sales support covering competitively priced parts, warranties, training and technical support t A comprehensive used car programme t All backed up by generous dealer commercial terms

Find out more The pulling power of the new Rexton

The versatility of the new Kyron

The space of the new Rodius

Call Ian Nicholson on 01252 619100

www.ssangyonggb.co.uk

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The hunt for San dealers is on – and the profit potential is absolutely huge

Season

HEN was the last time you made £2,000 on a car? We’d hazard a guess at never. But that’s exactly what San importers Dream Machines are pledging from every Storm model sold. With some of the biggest franchise dealer groups predicting a profit of just £330 per unit over the coming year, just think what six times that from every car out the door would do for your business! It sounds like a pipe dream, but one that the current distributor is living. And now they want you to get in on the act too (see page 15). But what exactly is the Storm and who’s it aimed at? Well, it’s a compact convertible that makes the perfect first car for style-conscious younger drivers. Its cute looks and walletfriendly persona make it an ideal car to start life on the road with. Costing just £9,995, Dream Machines are finding most cars are bought on a credit card for sons and daughters. And that’s because it’s low maintenance, low cost and cheap to insure. With a Renault-sourced 65bhp 1.2-litre petrol engine under the bonnet, the Storm needs few fill-ups, returning 68mpg on the urban cycle, and a lowly Group 7 insurance. It’s a sprightly unit that’s at its best when worked hard. Potter around and it’s just fine, but when you really stretch the unit’s legs you’re rewarded with one fun machine. Couple that with lively handling and a short

‘Lively handling and a short wheelbase mean the Storm’s got an air of the legendary Mini about it: small, compact and fun.’ wheelbase and the car’s got an air of the legendary Mini about it: small, compact and fun is what first cars should be all about. It looks good too. Those 14-inch alloy wheels are standard, there’s a rear spoiler and the paintwork in black has a stunning, deep pearlescent flip to it in direct sunlight. With the top down it’s even more impressive and certainly turns heads. Park it up just about anywhere and it’ll draw a crowd – some people want to know just what on earth it is, others just love the dinky looks. You can’t drive the Storm if you’re shy, that’s for sure. Inside it’s cosy, but not uncomfortable and the seats push back enough to give even the tallest drivers room. The dash is simple and logically laid out with a Kenwood CD player and speakers up front. Leather covers just about every surface and the red and black colour scheme in our test car looked funky. Just behind the seats is a deep parcel shelf with loads of room for your shopping, and there’s a decent-sized boot too. Putting the roof down takes a little bit of planning, but once you’ve tackled it a few

times you’ll have it sussed. Two clips at the front hold it in place and the roof is hidden by a tonneau cover that poppers on to the bodywork. With the top down the Storm turns even more heads. Out on the road, the San is entertaining. Yes, there might be a little bit of body roll in the bends but it still ploughs on round, putting a smile on your face at the same time. At motorway speeds it can get a little noisy, but then what do you expect from a drop-top? That 1.2-litre easily keeps up with motorway traffic and it’s amazingly economical over distance. Other extras for your money include air conditioning, central locking, electric windows and power steering. All added benefits for those in the hunt for a cool first car. You might not have heard of San before today, but if Dream Machine’s aspirations are anything to go by, lots more people will have by the end of the year. And with those impressive profit returns for dealers, can you afford not to find out how to get involved? See Dream Machines’ advert on p38 for contact details

San Storm Price: £9,995 Engine: 1.2-litre Power: 69bhp, 92Nm 0-60mph: 11s Max: 98mph Ins: Group 7

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Advertisement feature

San Storm £9,995

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AT048 Tried&Tested FP_AMA4

28/3/08

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Page 1

The professional’s choice Only professionals welcome

Every month we turn away over 30% of applicants who wish to join

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It works so well because we understand your business

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Within seconds our Subscribers know about prime stock being offered around the UK – it’s faster than email

The most active site of its type

145,697 website visits by dealers in February 08 (Not hits, actual dealers logging back in)

117 new dealers subscribed in February 08 alone

Who following their free trial clearly saw the benefits for their business of full membership

17,055 prime used cars offered by dealers in February 08 5,099 requests from dealers looking for specific cars in February 08

But don’t take our word for it! Ian Mossop, Sales Manager, Lexus Isle of Man “I placed a ‘Wanted Ad’ and immediately received a call from a fellow dealer who offered me the vehicle and a deal was done. I have struggled for a long time through my usual sources but within 15 minutes I had it sourced through yours and it will definitely satisfy the customer I have waiting, thank you” Mar 08

Norman Smith, Sales Director, Mertrux “Autotrade-mail – a true credit to the modern Motor Trade. We successfully source over 30% of our used car/commercial stock from the system with so much ease and reliability. Being a main supplier in the north for the Mercedes Commercial market, this tool has proved itself invaluable day after day” Feb 08

Brian King, Dealer Principal, Ames Nissan “We had a Nissan Terrano we needed to trade, put it onto Autotrade-mail at 3.00pm this afternoon, it was sold by 3.15pm!! What more can I say except that I am absolutely delighted! Excellent!” Mar 08 Steve Bradley, Proprietor, Campden Road Garage “I placed a car on to Autotrade-mail, clicked ‘send advert’, turned away from my PC to answer the phone to someone wanting to buy it!!! Also had a further 30 phone calls in the next 2 hours. I couldn’t believe it, Brilliant!!” Mar 08 Ian Bird, IBM Motor Solutions “Autotrade-mail simply knocks the spots off the competition.” Jan 08

Damien Smith, Sales Manager, Skipton Ford “It’s a brilliant site, it couldn’t be easier to use and we cannot believe how powerful it is. We had a Zafira we needed to trade, put in on the website and had in excess of 10 calls within the first hour. We trade loads through Autotrade-mail now (approximately 50 so far this year alone and it’s only February) and love it. Keep up the good work!” Feb 08 Paul Garratley, Sales Manager, Mike Thompson Peugeot “I advertised a BMW X3 yesterday and received a bid of an extra £500, that enabled us to close the deal with the customer, thank you.” Jan 08

Call us on 0870 2000 848 for your FREE two week trial and experience the full range of Autotrade-mail subscriber benefits before investing in your £40 monthly subscription. CarDealerIss2.indd 26

4/4/08 11:07:26

cult cars

Ferrari F430 Spider

HEN I was 10 my best mate Joe Jacobs collected model cars. And I was jealous. Not because he collected them – I had loads myself – it was because he had a niche: he’d only have Lamborghinis. Unless it had a raging bull on the front of it, Joe wasn’t interested. And he knew everything about them. He could reel off their specifications like he was remembering what he had for breakfast, he knew when they were built and even how many people it took to screw them together. Some would say it was a rather unhealthy obsession, but being Joe’s best mate I wanted in. So my search for another Italian supercar company to covet began. Thankfully, for a boy with the attention span of a goldfish, it didn’t take me long. One minute with my Supercar Year Book and I had the focus of my attention for many years to come – Ferrari. And when it comes to cult cars; cars we so desperately long to own for the rest of our

years, there’s no stronger bond than that formed in the dewy eyes of a 10-year-old. The car of my affections was the Testarossa. It was the mid-engined Ferrari of its day – just like the F430 is today. And just as the Testarossa did back in the late 80s, the F430 is stirring the emotions of Ferrari-fans-to-be across the world right now. It’s not hard to see why. Just look at those lines, the soft curves, the powerful haunches – it’s as good as top shelf exotica to an impressionable youngster. And then there’s the stats. In a game of playground Top Trumps you’ve got to be pretty unlucky to be beaten with an F430 in hand. With a top speed of 194mph, a 0-60mph of 3.9s and 490bhp tucked behind the seats, it’s more or less unbeatable. And in Spider guise we’d argue even more gorgeous. Not only can everyone see who’s driving it, but you’re treated to the most amazing soundtrack. The deep bellow from the V8 rises to a crashing scream as you thrash

up through the paddle shift gearbox – but it’s never nasty; more a pared down F1 car for the road. It’s all thanks to a clever valve system in the exhaust that opens to pump up the soundtrack to 11 every time you mash the go pedal to the floor. The system is mated to the car’s clever driver dynamic system that adjusts all manner of the car’s electrics, opening the valve depending on how sporty the setting you chose. Just to get some idea of this car’s cult status, think back for a moment about some of the mid-engined Ferraris that preceded it. At the forefront of my mind are the 360 Modena, the glorious 355 and then back to my boyhood dream car, the Testarossa. Now tell me which of those you wouldn’t want parked on your drive right now. Exactly. Cult equals desirability and there’s nothing more desirable than a Ferrari F430 right now. Especially one without a roof... James Baggott

Ferrari F430 Spider

Price: £142,502 Engine: 4.3-litre, V8 Power: 490bhp, 465Nm 0-60mph: 3.9s Max: 194mph Now finance one with Bridford: Option one: £25,000 deposit, 24 x £798 per month, final payment Option two: £15,000 deposit, 48 x £1,598 per month, final payment

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4/4/08 11:07:32

Dot cultCom cars

...in association with Really Good Domains

Getting it right online Really Good Domains offers dealers a host of online advertising opportunities – car Dealer finds out more

nternet years – like dog years – are somewhat longer than those in real life. It takes a special company to keep a business going online where others thrive and fall at the click of a mouse. But there are some factors that can keep a business going from dot com boom to dot com bust. First and foremost is a really good idea and secondly is providing the service you’re promising – with real tangible results. Really Good Domains is one of those internet success stories – and will pay testament to those facts. The company has been around since 1999 and was one of thousands launched in the late 90s internet business boom. With boss Dave Timmis at the helm the company’s success story has gone from strength to strength. Why? Well, that’s all down to one of those good ideas. Or, more accurately, several good ideas. ‘Early on we recognised the frustration that the motor trade had with copy deadlines with traditional printed media such as magazines,’ explained Dave. ‘These deadlines meant that companies were advertising either old stock or out-of-date car leasing prices when the magazine was published. This was equally as frustrating for the consumer. ‘We remedied this by being the first company to offer car leasing companies the facility to advertise changing prices in real time on the internet. As with any really good idea many have tried to copy our model, but none have ever equalled our successful formula.’ And that formula has just got bigger and bigger. The Really Good Domains portfolio now includes several websites: CarSupermarkets.co.uk,



The Really Good Domains office in Stockport, Cheshire, and popular website ContractHire Andleasing.com maximise their advertising, and new business managers that deal with the steady flow of new enquiries. ‘We also have a large team of IT developers who constantly improve our existing websites and of course develop new ones,’ added Dave. ‘And it’s all backed up by a great admin team that keeps all of the paperwork in order! ContractHireAndLeasing.com, FleetDirectory. Because of our loyal user base and reputation co.uk, SaveMoneyOnCars.co.uk, TheVanWebsite. in the motors industry we have been able to exco.uk and CarAndVanAuctions.co.uk. All hugely pand and launch new niche websites in areas not popular in their respective fields. covered. In 2007 we launched RoadTestReports. Dave added: ‘We have always enjoyed the co.uk and TheGreenCarWebsite.co.uk. Both sites benefits of an incredibly loyal user and advertiser have become incredibly popular.’ base. Many of our original customers from Really Good Domains now owns and maintains day one have also grown and evolved with us more motoring websites than any other internet and still advertise to this day on many of our advertising company in the UK. Each is indewebsites. We have steadily doubled in size every pendently recognised as the busiest and most year since launch and now operate from our own effective in its sector. £1m purpose-built offices in Stockport, Cheshire. ‘Our focus is now on reinforcing our position Our staff retention is exceptional.’ as number one in marketing for motoring by Really Good Domains now employs dedicated developing new websites and making the best account managers to help dealer customers even better,’ added Dave.

‘As with any really good idea many have tried to copy our model, but none have ever equalled our successful formula.’

SaveMoneyOnCars.co.uk

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

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4/4/08 11:07:40

feature

T C

he specialists

oncentrating your business on one type of car, or even a single, often niche, brand might seem a brave move – your fortunes are very much tied to the success or otherwise of your chosen model or manufacturer. But across the UK a host of dealers have found great success as specialists. They got into the business in different ways but all follow the same basic premise – know your product inside out. Richard Williams, founder of Aston Martin specialist RSW – pictured above – would have no difficulties on that one. Based at Cobham in Surrey, RSW is an Aston Martin Heritage Centre, recognised as selling and servicing all Aston Martins

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They sell one brand, some just one model, but is diversifying worth it? Stewart James reports

once they depart the dealer network. Aston-tinted blood certainly runs through Richard’s veins – he started his career as an apprentice with the marque, before running a race team for none other than comedian Peter Sellers. An Aston dealership followed, and then much motorsport during the 1980s including taking Aston Martins to world championships in Group C2 sports car racing.

Today, while still very much involved in motorsport, Richard’s day job is running RSW, and offering a wide-ranging service for all Astons from the earliest Feltham cars to latest models such as the DB7. According to Richard the secret of success as a specialist is attention to detail: ‘For example, when you’ve completed work on a car extensive road-testing before returning it to a customer is essential,’ he says. >

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the specialists ‘Such efforts as road testing the car like this help build the relationships with our customers that are so valuable.’ Surely being tied to the varying fortunes of a single marque can be challenging though? Richard thinks not. ‘We’ve never once considered expanding beyond Aston Martin. Specialist knowledge is something our customers appreciate – if a car comes in with a strange noise there’s a 99.9 per cent chance someone in the business will know what it is because they are so familiar with the cars. ‘We are very busy doing what we are doing – trying to provide the same level of service for two or three marques would be a nightmare.’ He also believes it would be hard to match the quality of Aston Martin’s parts service. ‘I can’t remember the last time we told a customer we couldn’t do their car because we couldn’t get the part. The parts are all available from the factory whether it’s for a current car, a DBR2 or a DB4.’ Changing economies do not seem to affect the business either, despite Aston Martins being very much motoring royalty. ‘Our customer base stretches from those who can just afford their car to those who simply add another to their collection. But they are all a certain type of owner, one who appreciates the unique driving experience offered by an Aston Martin.’ Richard is confident of continuing success for the RSW specialist approach, though he admits to one major challenge. ‘Selling our cars is never difficult. Finding high quality stock with potential is a different matter – it’s out there, finding it is the hard bit.’

Top555: supercar sellers

ou might find the odd Aston Martin in the showrooms of Top555, but you will also find a lot more to drool over. While Top555 is not a single-marque outlet, it is very much a specialist, in the kind of automotive exotica many of us only dream of driving. The company showroom, at Oakham on the side of Rutland Water, is packed with the products of Ferrari, Porsche, Lamborghini, Rolls-Royce – prestige motors one and all. And despite the tales of economic gloom dominating the daily media, sales director Charles Freimuth says the year so far has been very busy. Charles has always dealt in prestige cars – the family business was set up seven years ago and has grown very quickly. He says the secret to being a good specialist is to know the market very closely indeed: what’s good, what’s bad and who’s doing what. And while one might think that such a business would be greatly affected by any economic downturn, Charles believes that’s not so much the case. ‘You can’t be so naive to think none of your customers will be affected, but we do have a very wide customer base. Our customers work hard to make their money, and they want the rewards which include driving a prestige car.’ Repeat and referral business is essential to the success of Top555. ‘We have customers who first came to us for a Boxster or a 911, and are now driving around in Ferrari F430s or Lamborghini

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Charles Freimuth at the Top555 showroom which specialises in automotive exotica

Gallardos. People like to change their cars, and of course we work very hard to ensure we get that repeat business.’ And while the company admits to selling more Porsches than anything else, currently there is a big demand for a range of cars around the £70-£80,000 mark, suggesting not everyone out there is feeling the pinch right now. While Top555 is purely concerned with sales,

the business maintains an excellent relationship with prestige brand franchised dealers, and all its cars are serviced at such sites. Charles contends that being able to offer such a full service to the customer is essential to the success of the business, and a prime reason why he can proudly claim that for anyone in the UK looking for a prestige car, Top 555 is one of the top three phone calls customers will make. >

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Specialists agree on one thing – the net ONE aspect all our specialists agree on is the importance of the internet. With, by their very nature, a niche clientele to target, their business is very much nationwide and beyond, and the internet is essential for attracting those customers. ‘We have a comprehensive site with all our stock detailed on it, but it is also regarded as a source of general MX-5 information,’ says Bill lone of Dandycars.com. ‘We also have an online parts shop which has steadily grown in importance in recent years.’ At Top555, Charles Freimuth is equally convinced of the qualities of the net. ‘Over the last couple of years especially, our internet business has grown significantly,’ he said, adding that the site fulfils an essential role in displaying the company’s stock to a customer base that is prepared to travel a long way for the right car.

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35 4/4/08 11:07:55

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N )NDUSTRY PIONEER ESTABLISHED IN N 3TILL ³.UMBER ´ VEHICLE HISTORY CHECKING COMPANY WITHIN THE TRADE N 4HE CHOICE FOR MANY HIGH PROFILE DEALER GROUPS N (IGHLY ACCURATE AND COMPREHENSIVE INFORMATION HELPING PROTECT YOUR REPUTATION N 2ELATIONSHIPS WITH ALL MAIN INDUSTRIAL BODIES TO ENSURE THE HIGHEST DATA QUALITY IS MAINTAINED N 4HE .ATIONAL -ILEAGE 2EGISTER OVER MILLION MILEAGE READINGS N (0) %XCHANGE THE FREE PORTAL ENABLING YOU TO PUBLISH YOUR STOCK TO A VARIETY OF ONLINE SITES AT THE PUSH OF A BUTTON N $RIVEAWAY )NSURANCE $AYS COMPREHENSIVE INSURANCE FOR YOUR CUSTOMERS

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4/4/08 11:07:56

the specialists ‘We’ve never once considered expanding beyond Aston Martin – specialist knowledge is something our customers appreciate.’

Richard Williams of Aston specialist RSW

DANDYCARS: AZDA BE MAZDA

pecialising in a brand or type of car is all very well, but what about a specific car? Surely this is a huge gamble? That’s just what DandyCars.com, based in Essex, does. Its showroom is filled with examples of that much-loved convertible the Mazda MX-5. Bill Lone is joint-owner with Gary Notta of the company which had its beginnings in the earliest days of the MX-5 when the Mk1 cars coming into Britain were rather less well-equipped than their Japanese counterparts. Personally importing a Japanese car demonstrated to Bill how difficult a process this was, but also alerted him to a possible hole in the market. Of course, today’s Mazda MX-5 is a bit different to the first cars of the early 1990s. While import still forms an important part

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of the business, Dandycars has grown to become one of the biggest MX-5 showrooms in the country with plenty of UK-sourced cars in stock. At this time of year, moving into the peak sales period, some 40 to 50 examples are always on show varying from Mk1s to the latest Mk3s. The phrase ‘peak sales’ gives a clue to one of the biggest challenges to Bill’s business – the MX-5 is a convertible, and as a result the business is highly seasonal. ‘Around now, spring into summer, it gets manic, but the winter months are a different matter,’ he explains. Keeping the company busy in the winter has seen some diversification, but still centred around the MX-5, and particularly involving aftersales and servicing. DandyCars offers owners a complete package for looking after their car, and in the winter one

of the most frequent jobs is hood replacement. The company even manufactures its own. The enthusiasm of MX-5 owners has also contributed to the success of DandyCars. The MX-5 community is very good at passing on information and publicising the good dealers, and it’s no surprise that DandyCars appears many times on MX-5 forums. Bill also admits to allowing some cars that are not MX-5s into the premises, with the appearance of a quartet of sporty Honda Integra Type-Rs, but he won’t be expanding further – ‘To stock other cars would simply dilute what people know us for.’ Our highlighted trio are three very different companies, but in many ways they share a similar ethos. These specialists prove that what some would regard too narrow a focus can be widely successful if you get it right.

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Peering into the lives of the motor trade...

On the spot interview Name: Andy Noble Age: 44 Job: Caterham Cars UK sales & marketing director Name: Andy Noble Age: 44 lives: Caterham, where else could I live? Any family? Ever-suffering wife Anita and two great daughters; West Ham supporter Robyn and speedfreak Lauren! What do you drive? Not surprisingly, mostly Caterhams, especially when on company business. At home I have a Discovery for family matters and a big fat XJS convertible for those rare sunny days. I’m also a bit of a bike freak and have a Triumph and Honda parked away in the garage. What was your first job? I was fortunate to be sponsored at University by Leyland Trucks and spent my first year having graduated working in the sales and marketing department for them. I had a great time, learning the ropes and working on shows and launches. What was your first car? A Triumph Herald convertible, it looked so cool on the Haircut 100 video (Remember them?). Who do you work for now? Caterham Cars, as UK sales and marketing director. What does this involve? Well, good question. Of course my main role is looking after the sales and marketing function for Caterham. But working for Caterham always entails more than it says on the tin. Caterham is one of those companies where you get involved in so many different issues. What would you say are your job’s biggest challenges? I have a dream of providing a complete customer service, and I am always striving to achieve this. It’s never easy. There are always parts of the business that can be improved, and as a small company we have limited resources to throw at these areas. But we will never stop trying! Any downsides? It can be-

‘Try and make big money from your customers up front and you’ll lose them.’ come all-consuming at times, and it becomes difficult to draw a line between work and home life – but I certainly have no complaints. What could be better than playing with cars all day and getting paid for it? How much do you earn? I do it all for love, you know! Do you have an average day and how does it pan out? Up at six, work by seven thirty. Emails and mail comes first, which seems to take a large chunk of my time, but communication is a highly important part of my work. The remainder of a typical day is spent in various meetings, either with staff or commercial, looking after the press and, most importantly, making sure our customers are well looked after.

makes me cringe. Favorite one: there are many, but I’ll go with As Good as it Gets. Favourite football team? There is only one team, West Ham United.

What newspapers/magazines do you read? It seems like I get sent every motoring mag ever published, so most of my reading time is spent checking through those.

Favourite drink? I’m partial to a pint of Magners on ice.

What is the most expensive thing you’ve ever bought? It would have to be our house. Then probably cars and bikes.

Have you got any superstitions? None, touch wood.

What’s your mobile phone ring tone? Booker T and the MG’s. It’s the theme tune to the cricket coverage on the BBC.

Favourite holiday destination? I guess diving in the Maldives rates up among the best.

What is the biggest challenge car dealers face? Trying to earn a living, I guess.

What would be your number one tip for car dealers? Look after your customers and you’ll What was the first record you see them time and time again. Try and make big money up bought? Electric Light Orchesfront and you’ll lose them. tra’s Mr Blue Sky. What’s your favourite film and the last one you saw? Last one I saw; Borat, it was on Sky recently and still

And finally... what’s your motto in life and business? Treat others as you would expect to be treated.

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

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4/4/08 11:08:16

cult cars tried and tested

...That was a good idea, with Autotrade-mail’s Kevin Watson

The great parking close E

VERY month Autotrade-mail’s Kevin Watson recalls those good ideas, hints and tips that can really help you. If you’ve got a good idea that you think other dealers should know about, get in touch with Kevin using the details below – he’s offering £100 for the best idea every month! Here’s this month’s selection.

Know thy enemy

Whenever one dealer we spoke to recruits a new salesperson part of their induction process is for them to take a taxed part exchange around to a number of local dealers to see how they would be treated as a potential customer. The trainee is well briefed with a plausible story such as that he recently joined a company which would like to Fear of rejection update their pool car. The value of this exercise We have been told about a very successful is immense – the trainee encounters the same salesperson who found a way to overcome his feelings a customer would when approaching fear of asking customers if they wanted to buy a a large showroom, trying to park, receiving the particular car. It apparently became known as the meet and greet then the qualification. Upon their ‘parking close’. At the end of a test drive when immediate return to their car the trainee would the customer asked where he would like them to score the experience. park the car he would simply say: ‘If you want it The dealer always distinctively falls into one put it over there, if not just put it back where we of two camps – firstly, those that trainees would got it from.’ After a moment’s hesitation the consider to be of no threat (i.e. where the service customer would ultimately answer the all-imwas not great) which bolsters their confidence. portant question for him. Not necessarily an apSecondly and more importantly, those that their proach suitable for all salespeople or customers, potential customers would be impressed with, but it certainly seemed to transform this fearful them study their own product to pull out ATO45 Car Dealer Ad 20/2/08 15:21 Page making 1 seller’s rate of success! the strengths in comparison to the local competi-

tion, also recognising how strong they need to be to be a cut above them.

Sourcing your sales enquiries This topic is always a bone of contention with sales managers. The cost of getting this wrong can run into thousands of pounds yet it still appears that getting salespeople to source accurately is a battle. One sales boss told us that out of frustration he decided to give his salespeople his advertising budget to spend as a paper exercise. In the sales meeting he simply said we have an advertising budget this year of £100,000. Go away and work out where you would like to spend this money. Unsurprisingly, the next day he had a very varied list of suggestions from the salespeople and ultimately they confessed that they didn’t really know. He replied: ‘Well how do you think I am meant to know given that it is from your sourcing information I decide how to spend the money to earn your living!’ Apparently following this exercise there was a marked improvement in their sourcing…

That was a good idea!

Kevin Watson FIMI is a Director for Autotrade-mail and has worked in Franchised Motor Dealerships for over 30 years.

Run by dealers for dealers Est 1999

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“I am not trying to re-invent the wheel, I cannot give you a simple solution to profitability but it does occur to me that over the years we have all introduced good ideas in our businesses but sometimes stop using them. Why? They are still good ideas! I speak to dealers right across the country on a daily basis and therefore “Car Dealer” magazine has invited me to run a

monthly article to simply remind us of these good ideas. I thought this in itself was a good idea! This is not a profit clinic, nor really a best practice plan. They are not my ideas, simply a monthly page to remind all of us of what we probably used to do anyway! I hope you find it of some value.”

If you want to remind us of a good idea then please contact: kevin@autotrade-mail.com and I will send £100 to the best idea that is published.

41 4/4/08 11:08:24

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4/4/08 11:08:27

feature SsangYong is on the hunt for new dealers – and any outlet, any size can apply to get involved. Richard Aucock reports

Ambitious? Driven? Have the right attitude? Then SsangYong wants to hear from you. And if this sounds a bit like a job advert, well, that’s because it is. The Korean 4x4 and MPV expert is embarking on a ground-up UK relaunch, and part of its ambitious plans is to recruit a flurry of new dealers. What’s more, as MD Paul Williams explains, you don’t have to be part of a huge multifranchise outlet to be of interest to SsangYong. The company is just as keen to hear from independents looking to make the first step into the franchise world. So long as they have the right attitude, then all the building blocks are in place to help them succeed. Williams and his team at SsangYong have been working hard putting all these elements in place since acquiring the business in late December. It’s now part of the huge Gruppo Koelliker, Italy’s most profitable automotive group with an annual turnover in excess of £1.2bn. Koelliker UK is a new company and a securely-funded division of the group – proof,

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says Williams, that this is a strategic part of the business. Efforts to date have been huge, including repositioning the brand’s three models, relaunching the website, briefing the existing dealers and building an infrastructure for short, medium and long-term growth. ‘High potential v performance’ is the summary of past performance, and within this is a strong offer to dealers. Williams’ determination is to tap into this considerable potential. So what’s SsangYong all about? Think no-nonsense value. The brand’s strapline says it all – ‘It works for me’. This is now the company’s ethos, part of its vernacular. As brand after brand focuses on the ‘lifestyle aspirational’ approach, so SsangYong sees an opportunity to succeed in the value-orientated, functional end of the market. The three-strong model range opens with the Kyron SUV. A new 2WD 2.0-litre diesel variant brings a £14,995 headline price – comparable with base Korean rivals, and far below other compact SUVs for what is a much larger vehicle (with 4WD too, for £2,000 more). Sitting above this is the larger, more premium Rexton SUV – pictured above – described as the

perfect working vehicle for those who only have one car: it’s comfortable, roomy and wellequipped. There’s also the Rodius MPV, a truly gigantic seven-seater with, again, a £14,995 lead-in price. You can’t fail to see the attraction to compact MPV buyers with humungous room for Zafira money… All SsangYongs boast a massive towing capacity. The 4WD Rodius range-topper, for example, is that rare thing, a seven-seat MPV that can swallow all its occupants – and, courtesy of a 2.5-tonne towing weight, tug a caravan large enough to accommodate them all. Don’t doubt the engineering, either. Mercedes-Benz engines and gearboxes are among the boasts, plus the nous of a maker that, back in its home market, is seen as premium. These things are posher than Kias and Hyundais in Korea. Customers are business-minded, and a salesman’s dream, says Williams. ‘Prices are now so good, you’re selling the product, not the deal – and our customers are buying a car to do a purpose, be it off-roading, towing or other utility jobs. It’s a working vehicle.’ This fosters an insider-type relationship with customes – both parties know they’re part of a great deal. >

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ssangyong Like the sound of this? Williams admits it’s all common-sense stuff, an approach the engaging head has made his trademark in a career that’s spanned Chinese giant Landwind, Kia (where he oversaw a 350 per cent sales rise in three years), Daihatsu and Mitsubishi. He’s part of a four-strong management team that also includes former Ferrari GB Operations Director Ian Nicholson (now Finance and Operations Director), ex-Kia man Nigel Unwin (Marketing Director) and existing SsangYong man Doug Lincoln (Aftersales Director). Lines of communication are short. This is a team you can get in touch with, that’s receptive to new ideas, and one that wants to encourage ambitious retailers with similar attitudes. The benefits of becoming a SsangYong dealer are, explains Williams, numerous. The bottom line is clear. Dealers can expect a 10 per cent margin on sales, with bonuses of 1.5 per cent if they sell between 36-50 cars, up to 2.5 per cent if they sell over 76 cars. So, a potential overall margin of 12.5 per cent, per car. But SsangYong will set dealers no sales targets and offer no tactical incentives – the company doesn’t want any pre-registrations, or any heavy short-term daily rental, so will avoid setting arbitrary trading periods. ‘This helps precipitate the time needed for a dealer to trade profitably. We’re not forcing volume,’ says Williams. A demonstrator of each model that’s six months old or less, plus a courtesy car no older than 12 months old, is compulsory. And to help costs they’ll be available for 10 per cent base margin, with a 10 per cent rebate when de-fleeted. As for stock, dealers will have to have one unregistered example of each model; funding will be supplied for this, with a dealer stocking charge on top. ‘This is not a massive burden,’ says Nigel. ‘We’re interested in demand pull, and don’t want to stuff dealerships up with cars, or have smaller dealerships holding cars in the wrong locations.’ Dealers will be obliged to provide weekly operational information, such as how many people they’ve seen, how many demonstrations they’ve conducted, how many cars have been sold. This is all information SsangYong will use for advertising and the like. They inherited no customer database, and started direct mail campaigns using the existing warranty database! Financial information will be fed via a dealer composite package, which again will be used to plan commercial strategies and campaigns. A feed from the website will be used to master all this – with full training provided by SsangYong. Bank of Scotland provides the retail finance package, used car finance and a badged contract hire package. Meanwhile, SsangYong will supply signage, and the parts and accessory stock is only £2,000. Minimal special tools also help keep overall investment low. As Williams says, it’s all good, common sense stuff. ‘Our commercial terms are simple, but

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‘We will handhold independent traders if they wish – nobody will be put through the sausage machine.’

Managing director Paul Williams helped increase Kia sales by 350 per cent – now he’s got similar plans for SsangYong

there’s a clear business case behind each. We’re not asking for freshly-ironed newspapers to be displayed in the waiting area! We’ve structured the business so we can all make a reasonable return – and created a platform for the long term.’ The SsangYong franchise will add incremental profit, but the opportunity is also strong. Support will be there from the off, with money available for new dealers to launch marketing and awareness programmes – there will be an

allowance for a launch event, and direct marketing packages will also be supplied. Launch programmes will be conducted with two-way dialogue: the directors know the product, dealers know their prospects and customers. ‘We will hand-hold independent traders if they wish,’ says Williams. ‘But nobody will be put through the sausage machine. Our approach to every dealer will be tailored to their needs.’ Indeed, the company fully appreciates the

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The Rodius seven seater starts at £14,995

All SsangYongs offer superb towing capability

importance of training. Every new dealer who signs up will benefit from a visit where, over the course of a day, they’ll be immersed in the brand and brought up to speed with what’s on offer. There is also a more intensive four-day ‘phase two’ plan, again held at the dealership. Conducted by SsangYong’s three regional managers, who fully immerse themselves in the dealership to understand what it’s about, this intensive course is, in a nutshell, free advice on how to make more money – improve standards, sell

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more cars, streamline processes, the lot. The company sees the benefits to all parties in doing this, and already has four dealerships signed up for the first round of sessions. Much work has been put into aftersales. ‘We’ve got first-pick up to the right levels,’ says Unwin. ‘And reduced parts prices by up to 40 per cent to bring them in line with our rivals. Indeed, we’re cheaper than rivals – cost of ownership is now six per cent less than another South Korean competitor.’ This provides a fur-

ther bolster to residuals. Free servicing for three years/30,000 miles is a current incentive, and Nicholson appreciates dealers may be concerned at the thought of this, but allays their fears. ‘It’s value-enhancing – work is carried out at 90 per cent of retail – the warranty rate – which means it isn’t a huge cost,’ he explains. ‘More importantly, it guarantees customers in the network for three years, and also allows dealers to up-sell. Add on wiper blades, for example: As the customer’s getting a free service, they’re more receptive to paying for other parts.’ The company has also created a used car sales scheme, which it says is key to its brand positioning and retained value plans (while also offering value-hunting punters a more attractive offer). The website will incorporate a facility, supplied by HPI, whereby dealers can upload details and digital images of used stock, and print out professional POS material. This info will also be used to place the car on a national used car locator (which customers can search using postcode, model and price preferences). This will cost just £1.95 per car, or £2.95 with an HPI check. A used car programme will include a warranty (sourced by SsangYong as a ‘value proposition’), AA recovery, free MOT for life and free puncture repair incentives. A 101-point check plan will be part of it too. >

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ssangyong

The message will be spread to customers by an innovative marketing company, Cosmic ID, which the bosses say is not your usual big London agency. ‘Again, the whole issue is for us not to do what others are doing,’ says Williams. Already, campaigns and communications are in place which target people who will actually buy the cars. You won’t be seeing any wasteful, expensive blanket campaigns here – as Williams says, they’re pointless, because 99 per cent of people seeing them won’t be buying a SsangYong. It makes much more sense to advertise in, say, Farmer’s Weekly. There is also now a dedicated press office, with press fleet, which will guarantee broad media coverage. Dealers are encouraged to come up with ideas, too. There is a minimum model spend of £100 per unit, and anything over that will

‘We’ve structured the business so we can all make a reasonable return – and created a platform for the long term.’ be matched 50:50 by SsangYong, if it’s got legs. ‘There’s lots of potential for off-the-wall schemes,’ says Nicholson. The general plan is to achieve 100 sales outlets, with each selling an average of 100 units, by the end of 2009. This year, the aim is to achieve 60 sales outlets, a doubling of the current numbers. ‘If we can get more, we will do,’ says Williams. So what if you’re interested? ‘Pick up the phone to us – we’re happy to talk. Following an initial chat, the team here will conduct dialogue with our regional managers and, in

time, our to-be-recruited dealer development manager.’ Williams also says a dealer recruitment link on the website is planned. The carrot is not only healthy SsangYong sales, either. Williams says there are lots more products coming, both from SsangYong and other brands as yet to be seen in the UK. Pure speculation would suggest Chinese companies may play a part here. One thing’s for sure – SsangYong is growing, fast. A quick call to Williams and you could be part of it. Want a piece of the action? See the SsangYong advert on p23 for contact details.

The Ssangyong brand really is a franchise worth having... MICHAEL Latimer, from SsangYong dealer Michael Edwards Wigan, happily says things are turning round for the brand, after a trying 2007. Even recent reports that the maker has seen dealer numbers fall are considered positively. ‘The network is more sparse now, but the dealers remaining are very committed – and we sense this is a two-way thing from SsangYong too,’ he says. ‘Before, there was a lot of negativity from certain dealers – some didn’t even stock the full range of cars, as they reckoned they didn’t sell. It made no sense.’ This negativity carried through to dealer meetings, says Latimer, which had a de-

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pressing effect across the brand. ‘Now, new recruits will come to meetings and find a real positive feel,’ explained Latimer. ‘This fills everyone with confidence, as we all believe it’s a franchise worth having. There’s a buzz about the brand now.’ The launch of the new Kyron has helped too. ‘We were promised it a year ago, but Koelliker have brought it through. They seem a switched-on bunch – go to Italy and see the number of SsangYongs there. They must be doing something right.’ Opportunities presented by the appeal of the range help canny guys such as Latimer. ‘We sell to people who tow and need a workhorse – but also to those who

want an X5, but don’t have BMW money. A two-year-old Rexton for £12k is their X5 – particularly if we fit big wheels and privacy glass.’ And what about Latimer’s outlook for the future? ‘It will take time. I see the brand where Kia was a few years ago – back then, Kia had low start-up costs and was a niche brand that quickly started going great guns.’ But he is very upbeat and confident, even reporting that some other dealers, who aren’t seeing the returns they once did due to rising manufacturer standards, are looking towards SsangYong. It certainly seems a franchise worth having – isn’t it time you got involved?

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12/11/07

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www.ben.org.uk.

Luckily over 18,000 members of her family were able to help out. At times you really need your family. That’s where BEN can help. As the automotive and related industries’ own charity, we’re here to offer vital help and support to all members of our family when they need it most. BEN is your charity, so whether your need is financial, physical or emotional we’ll be on hand to help – for however long you need us. Our family includes everyone from cycle manufacturers to motor insurance clerks, past and present, even their immediate family. For more information or to request BEN’s help simply call 01344 620191 or log on to: www.ben.org.uk

To make a donation to BEN simply call

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products 1. Karcher steam cleaner

Price: £115 Contact: www.k-cleaners.co.uk SOME stains just require the need to ‘steam’ in! With the daily kicking car interiors take, you might find the usual cleaning methods just don’t work. If you’re struggling to shift ingrained stains both inside and outside your car, a steam cleaner can help. This Karcher model comes with all manner of accessories to help you tackle the job. You fill up the built-in water reservoir from the tap and within three minutes it’s ready to go.

Date

9/11/07 GH

Price: £140 Contact: www.panasonic.co.uk FORGET pimp your ride – now it’s time to ‘pod’ your ride! Panasonic’s latest headunit is designed to make listening to your iPod in the car a simple plug and play affair. The CQ-RX400N features a USB port that lets you connect your MP3 player straight into the front of the headunit using the supplied cable. It also boasts 4x50W of power, an 18-preset radio, front auxiliary port for other multimedia devices, and the ability to play back AAC, WMA and CD-R/RW discs.

3. Ety8 Earphones

Studio Production: Copywriter: Art Director: Client Services: Client:

Initials

2. Panasonic CQ-RX400N

RBH Amends

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Client Amends

SIGN OFF

Price: £199.95 Contact: www.etymotic.com BEFORE you baulk at the price, just think of the benefits of Bluetooth headphones – no more tangles, just wire-free listening! These headphones use Bluetooth technology to stream music from an iPod. Your MP3 player could even be in the boot and the headphones still work.

4. DEi Boom Mat baffles

Price: from £10.97 Contact: www.nimbus motorsport.com THEY might be hidden away in door panels and parcel shelves, but car speakers can be easily damaged. These Boom Mats not only act as acoustic baffles to enhance sound performance, but will protect speakers too.

5. Mishi Breakdown Bag

Price: £39.99 Contact: www.mishi.co.uk BEING prepared for an emergency means you’ll have the best chance of dealing with any problems that arise. This superb-value kit comes packed away in a handy bag and includes a warning triangle, reflective vest, tow rope and jump leads as well as loads of other handy bits.

5 6. Privacy Shades 7

Price: £99.95 From: www.a1motorstores.co.uk GET that tinted window look this summer, but stay on the right side of the law. These A1 Motor Stores Privacy Shades are tailor-made for each application and simply snap into place using patented clips from the B pillar back.

7. The Absorber

Price: £7.99 Contact: www.the-absorber.co.uk AS the name suggests, this is one synthetic chamois with a drink problem! The Absorber can hold 50 per cent more water than a natural leather and can absorb it 20 times quicker. The American product is said to be safe on all paint surfaces and can be stored wet in its plastic case.

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49 4/4/08 11:09:15

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Simply fill out the online form and we’ll send you 12 issues completely FRee oF cHaRge. no catches, no hassle. That’s a deal you can’t refuse! Just because you’ve got this issue doesn’t mean you’ll get the next, so register now... if the address carrier sheet that came with your magazine said ‘Address confirmed’ anywhere on it then your details are already confirmed – if it didn’t, log on and fill out your details now. Go on – why are you reading this small type? Go to www.cardealermagazine.co.uk and do it now! CarDealerIss2.indd 50

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4/4/08 11:10:03

used cars

...in association with CAP

Crisis? What crisis asks experts CAP The credit crunch might be hitting some quarters, but there’s little evidence of used car market problems

ot since the start of the decade, when the ‘rip off Britain’ campaign was in full swing, has the industry faced so much talk of crisis. With the world inter-bank lending fiasco leading the way, every day brings talk of impending economic doom. Even from within the new and used car industry there are gloomy predictions of markets grinding to a halt and accelerated decline in residual values. But does the evidence so far support such a pessimistic view? CAP’s research this year has consistently revealed a buoyant trading period in the used vehicle sector. Trucks are still flying out of the auction halls, vans remain in high demand and retail customers continue to buy used cars. Take the April edition of Black Book – this reports that the overall downward movement in values was 1.3 per cent. A year ago Black Book was reporting a reduction of just 0.4 per cent. However, improvements in the research and analysis processes at CAP means that this does not represent a true like-for-like comparison of overall market performance. The message here is that the difference in market performance

today, compared with a year ago, is slight and there is no significant evidence of current or impending crisis at present. When other factors are taken into account there is some real evidence that market conditions are, in some respects, better than the same period in 2007. For example, auction conversion rates during March this year were actually stronger than March 2007, at 79.5 per cent compared with 76.4 per cent in the same month last year. Indeed, this is the strongest disposals performance for 12 months. Another strong indicator of underlying market performance is the percentage against CAP Clean achieved by ex-lease cars at three years and 60,000 miles. A year ago this was 98.2 per cent while in March 2008 the average was 98 per cent. What seems to be underpinning the relatively strong performance of the used car market is a combination of more carefully controlled supply of raw stock into the marketplace and a determined attitude among dealers to maintain ‘business as usual’ despite the headlines. The supply factor is certainly important because nothing is guaranteed to create a mood of caution

more than auction car parks stuffed to the gills with unsold stock that has already been offered and passed over several times. But the current positive mood is not only attributable to controlled supply. It does not matter how much or little stock is in the marketplace if retail buyers are staying at home. But dealers are reporting increased sales, month on month, along with increases in enquiries and showroom traffic. There are no guarantees that such performance will continue. Nobody can dispute that the conditions for a slowdown are in place, with the credit crunch still claiming casualties, forecasts of global economic slowdown, more bad news to come from America, expected reduction in the growth rate of the UK economy and worries about record levels of consumer debt. But so far so good, as dealers themselves are saying...

Mini takes on the Ferrari Enzo in amazing residual battle One of the most common requests to CAP from the media is: which cars hold their value best? The problem with such a question is that it will inevitably reveal only exotic cars and not the ‘real world’. Therefore, the most recent analysis has now answered that question twice by identifying not only exotica, but also the highest value retaining models which can still be classed as mainstream cars. For this exercise the CAP Clean values of the absolute top five performers in March 2008 were

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identified. Because the list inevitably featured only supercars the exercise was repeated with exotica excluded, to reveal the best residual value performers driven by ordinary

motorists. And we can now reveal that the supreme residual value performer on today’s roads is – the Ferrari Enzo, retaining a stunning 96.7 per cent of its list price. It is followed by two Morgans. So far, no surprises. But in fourth place stands one of the most remarkable success stories of recent years – the Mini, with a percentage of list price retained of 67.4 per cent. For the Mini to rub shoulders with truly exotic cars in this list is testament to its universal appeal. As if that were not sufficient a

triumph the Mini’s performance was so far ahead of all its rivals when exotic cars were excluded from the exercise that the parameters of the analysis had to be altered to prevent it dominating all top five places. This is because the list of the top five residual value performers initially comprised the Mini One diesel, Mini One petrol, Cooper S convertible, Cooper hatchback and Cooper convertible – leaving no space for other models in the list! Mini has achieved something quite special for a mainstream car.

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Trading places z

...in association with BEn

Operation Make Money well you’d never have guessed it – but we’ve managed to sell the Fiesta. now it’s time for you to get involved in our charity cash drive

O be brutally honest – I was starting to panic. Six weeks after picking up our little Ford Fiesta from Autotrade-mail and it hadn’t moved off my drive. As you can imagine, launching a new magazine takes up quite a bit of time, so our Trading Places feature had slipped down the priorities list. But with the first issue put to bed, a window of opportunity arose – it was time for Operation Make Money. Our M-reg, one lady owner, 51,000-mile Ford was in good nick for its age, but needed a few cosmetic repairs. We needed to make the decision to tart it up or spend some cash and have a small rust patch repaired. Wanting to get the ball rolling as soon as possible, we decided to give it a decent valet and advertise it for slightly less money. So to work. Not wanting to spend any cash, we went on the blag and a whole range of car

Sold! Our Fiesta’s found a home, thanks to an HPI Check protecting yourself from hidden history. We knew there was nothing wrong with the Ford, but being able to prove that to our potential buyers would be very helpful indeed. One simple call and the check was made – clean as we expected – and seconds cleaning products soon flooded later the certificate dropped into our offices. One sunny Sunday we our inbox (see above). got to work with the Autoglym So preparation out the way it products and a shed load of was time to sell. With grand plans elbow grease and the Fiesta was to put the Fiesta in the Auto soon looking superb. Trader, local paper and if that Next up was a little bit of help failed on eBay, we got to work from our friends at HPI. It’s always penning an ad. That was the easy better to be safe than sorry and bit – with the only real thing an HPI Check is a great way of

‘We knew there was nothing wrong with the Ford, but wanted to prove that to buyers.’

How you can help raise money for BEn THE plan is simple – raise as much money as possible for automotive industry charity BEN. How? With an elaborate relay race and your help. Autotrade-mail donated our first car and we aimed to sell it for as much money as possible. The entire fund will then be handed to another trader who’ll put it into a car of their own, again trying to make as much

money as possible. Each month the baton – in this case the cash fund – will be passed on to another trader who’ll carry on the challenge. The aim is to make as much money as possible, and have some fun along the way. We still need willing dealers to take up a leg of the relay. Call us on 077 47 600 855 or email james@blackballmedia.co.uk to find out more.

missing being tax (we didn’t want to tax it and add another owner to the logbook), the ad wrote itself. But then we had a stoke of luck. Chatting about the feature with my football team mates one mentioned that he was looking for a runabout for his better half. They’d just had a baby boy and needed a five-door. A few days later he was round and taking it for a test drive. Being a car mechanic, he gave the Fiesta a thorough going over and found nothing wrong – testament to the corker our friends at Autotrade-mail found. A bit of bartering later and the deal was done – £695! Far more than we were expecting, but probably something to do with the fact said friend knew it was for a good cause! We told Autotrade-mail the good news and boss Marcus Kelland was so impressed he offered to make it up to £1,000. Good man! Find out who’ll be taking up the cause next month.

It wouldn’t have been possible without...

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tail light

Devine inspiration T

his year’s Budget looks set to be the latest stepping stone to radically alter the face of the forecourt and Britain’s roads. I expect to see a progressive move to smaller, economical cars (clearly what the Government is aiming for). Rapidly rising fuel prices, increasing insurance costs, VED increases, city charging regimes and now the new ‘showroom tax’ are all pushing the market to smaller, more economical cars. In a challenging market, there are opportunities for dealers – to help their customers into more economical vehicles for one. Alistair Darling’s first Budget has seen the Chancellor attempting to encourage motorists to move to lower CO2-emitting cars with the increase in Vehicle Excise Duty (VED) for large vehicles. His belief is that the reclassification of vehicles into six new VED bands will force motorists to choose lower-emitting vehicles. In reality, the savings in relation to the total cost of motoring are relatively small and on their own are unlikely to encourage buyers who really want a large car to trade down. However, when taken into consideration with the rapidly-increasing cost of fuel and to a lesser extent insurance then a general move to smaller, more environmentally-friendly cars seems inevitable. Looking ahead, the Budget is a relatively small part of the challenges we face. The biggest is unquestionably in generating consumer confidence. We must ensure we stick to good business fundamentals and make it easy for customers to buy the car they want. It is something we must do through good marketing in and out of the showroom and through good customer care. The economy is changing the value of cars in a way we have not seen for many years. Customers

‘A lower part exchange value is something customers clearly don’t want to hear.’ faced with higher motoring costs are also set to see the value of their own car tumble as well, especially if they are in a large petrol car. We have recently seen forecasts of an eight per cent fall in used car residual values from analysts EurotaxGlass’s, with big family cars and fourwheel drive vehicles likely to be worst affected. A lower part exchange value is clearly not something customers want to hear, but it is an economic reality and we must ensure that here we treat the customer fairly. The potential good news for customers is that, as we in the trade are aware it is the ‘cost of change’ that really matters. It is a message we must convey to customers in a candid high integrity fashion. It is an area where point of sale finance can help. In spite of the ‘credit crunch’, well-funded and resourced finance businesses such as GE Money are very able to provide highly competitive rates and fast service. Where lower accept rates and higher rates through ‘rate for risk’ underwriting are increasingly prevalent in the personal loan market, dealer finance remains very competitive and accept rates have held up well.

Devine is CEO of GE Money Motor Finance. Email Who is Brendan Devine? Brendan him at brendan.devine@ge.com or visit www.geauto.co.uk

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Jaguar

New owners, new limited edition monster Supercharged V8 | 420bhp | £80k | Only 200 to be built

TRADING UP

SSANGYONG

Two great franchising opportunities inside

The hunt for new dealers is on

CarDealerIss2.indd 54

SAN STORM

Make 20 per cent on every car! &MFDUSJD J PO UIF XBZ

CarDealer.

P0 Box 227 | GOSPORT | PO12 9DE | www.cardealermagazine.co.uk

Editorial Director James Baggott E: james@blackballmedia.co.uk T: 077 4760 0855

Sales Executive Darren Stokes E: darren@blackballmedia.co.uk T: 077 4760 0855

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Contributors Mike Askew, Stewart James, Richard Aucock, Maurice Hardy, Tom Scanlan, Mike Hind and Kevin Watson Thanks to... Karen Hughes, Sarah Harlow, Justine Hoadley, Tim Marlow, Graham Filmer and Danny Lee

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

4/4/08 11:10:24

GE Money Motor Finance

Transform your business At a time when the car market is tougher than ever before, we know we need to provide more than just finance. A global company, built on local relationships, we offer:

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Ring us today to find out how we can transform your business

call Craig Goold on 07747 008 087 GE imagination at work GE Money is a trading name of GE Capital Bank Limited, 6 Agar Street, London WC2N 4HR. Credit subject to status, available to UK residents aged 24 years and over. GE Money is a trademark of the General Electric Company. GE Money is authorised and regulated by the Financial Services Authority and whose registration number is 204572.

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WE’VE INVESTED £15 MILLION TO DRIVE BUSINESS THROUGH YOUR DOOR. We’ve launched our biggest ever advertising campaign. It will reach 92% of UK adults and be seen everywhere, from television screens to fuel pump nozzles. And why are we doing this? One reason - to increase footfall to your dealership. To find out how we can help you sell more cars more profitably, simply call us now on 08444 706 760 or visit www.yourworldmadeeasy.co.uk

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