Car Dealer Magazine: Issue 30 by Blackball Media

CarDealer. Issue 30 | September 2010 | CarDealerMag.co.uk | £3.50

[ Bangers4BEN 3 – Who’s signed up so far? p9 ]

Driving the future of the motor trade

Net profit? Hyundai pitches in with our 911 for 2011 challenge

ALSO INSIDE From Porsche to BMW to Motoring.co.uk Peugeot MD admits his dealers aren’t making enough money The firms you should be talking to this summer

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start

Issue 30 | September 2010

THIS column is always the last thing I write for the magazine, which means I can give you an update on the Hyundai i10 World Cup car auction you may or may not have read about yet. if you’re anything like me, this boring editor’s column is probably the last thing you read, which could work in my favour. If not, pop along to page 42, then come back... Right, that’s the complicated introduction out of the way and brings me to today. It’s the day before the issue you’re holding in your hands goes to the printers and the i10 has been on eBay for four days. And things have gone a little bit mad. The PR offensive we said we’d initiate has been executed with the efficiency of a German undertaker and the story of our unique i10 has gone global. So far it’s featured on websites in America, Italy, France, New Zealand and quite a few in the UK too. Needless to say that’s helped the visitor numbers to the auction page increase quite considerably. We’re closing on 1,000 now and it’s rising every hour. But the really good news? Well, it looks like the car’s

going to at least make us our money back. As of now – which is the Friday morning I’m pushing the button on the press for this issue – our little i10 has five bidders who have pushed the price up to £2,500. Perhaps this little motor could actually add substantially to the pot of cash we’re looking to accrue for our Porsche 911, and ultimately industry charity BEN. It really is amazing how viral the internet can be and just goes to show how powerful a medium it is. If we can flog a car covered in fake grass by utilising the wonder of the web, it’s clear to see why it’s become so important to dealers... EWARDS THAT last point brings me quite neatly on to a plug. This month we focus on one of the very first entries in this year’s Car Dealer Ewards, being held in association with Autotorq.com. Wirral Small Cars are only a relatively small dealership but they’ve produced a very professional and unique site. It’s seriously impressed our judges and goes to show competition for this year’s seven gongs is going to be tough.

If you haven’t sent us the details of your website yet, remember the sooner you get them to us the better. That way there’s a chance your dealership could be featuring in one of our round-ups before the big event too. To find out more, turn to page 48. SUMMER FUN THIS is a weird time of year in showrooms. Most people are on holiday / about to go on holiday / have just got back from holiday and, as such, their minds aren’t 100 per cent on the job. That means buyers aren’t plentiful and you might be left with a bit of time on your hands. So, this month we’ve highlighted seven firms that could be worth spending a bit of time investigating this summer. Each has a sizzling proposition to help you boost profits and make your business more efficient – maybe this holiday season it’s time to give them a try? Enjoy the issue.

James Baggott, Editor

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ignition Issue 30 | September 2010

dashboard 06 Feedback

Our guest blogger gets a reaction

09 Bangers4BEN 3 Who’s signed up so far?

10 Social media key

Peugeot chief on Twitter and Facebook

12 Inchcape profit

Firm celebrates 76 per cent rise

14 Interview: Jon Goodman

Peugeot MD talks exclusively to Car Dealer

18 On the Spot HPI’s James Edwards

21 Comment

Motoring.co.uk on making money from fluff

23 Big Mike

Missing Roger the bodger and his tricks

25 Finance

forecourt

28 Abarth 500C 30 Porsche Turbo S 33 Mitsubishi Shogun 34 Kia Sportage 39 Cult Car: Lotus Esprit 41 Sales Legend: Vauxhall Nova

features

36 South coast to Scotland We tackle epic drive in an unlikely car

42 911 for 2011

The story behind our wacky Hyundai i10

48 EWARDS 2010

A look at one of the latest entries

50 Kevin Gaskell

Why industry legend joined Motoring.co.uk

55 What’s Hot?

The firms that can help you this summer

67 Auctions 69 Right Click 71 Best BMWs

Our five favourite BMW models

73 Win Win World 74 Trader Directory 75 Recruitment 79 Suppliers Guide 80 Used Cars 82 Sub-Prime Time

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feedback Your comments via email at james@blackballmedia.co.uk| From our website at CarDealerMag.co.uk | And from Twitter: Follow editor @CarDealerEd

Our guest blogger strikes a chord Sell cars? No, not me...

Link: bit.ly/Sellnotme Our new guest blogger James Litton wrote his first Trader Tales piece for us and it seems like what he said struck a chord with members of the public. Here’s an abridged version of the blog and what web visitors said. To read the full article follow the link above. WHENEVER I am introduced to someone for the first time, I avoid where possible the subject of my occupation… It is not because I am embarrassed or ashamed of a job I love, it is because more often than not I get told a horror story about a bad car retailing experience that person has suffered. In all cases I feel duty bound to defend my car selling brothers and sisters with sweeping statements like ‘if you didn’t make an appointment on a Saturday they were probably busy’ or ‘I am sure they would have done the deal if they could’. However, at the weekend, my best friend asked me to buy a used car on his behalf. He has a specific need for a large German estate and I located two examples on the manufacturer website and thus moved from gamekeeper to game. The first choice car had been sold, the salesman took my number in the event that the buyer shed his skin so it was on to number two. The dealer who owned the second car claimed to be a ‘vibrant company with a fresh approach’. I called and asked to be connected to a used car salesman. ‘One moment,’ came the curt reply and that was to be it. The phone rang and rang to the point I had to hang up. I left a mobile number and a little message – ‘please can someone contact me urgently about this car’. Three days have passed and I am still without a call... I CALLED a certain car supermarket about a 56-reg Mondeo Titanium X estate, the dealership was 65 miles away but it was the only car nationally that fit the bill so I called them and enquired about it. I told them that I would be calling the next day and as I would be travelling so far I would want to take it away the same day, this was no problem was the reply. The next day I called them at 9am and told them I was on my way to them and would get there about 2pm. When I got there at 2pm, a salesman approached me and I told them which car I had come for. They told me that car had been sold the night before. I was furious, one of the sales reps had spoken to me and told me it was available a few hours earlier. I had even been to the building society and had a building society cheque for the car. All he could do was apologise but I was not happy. When I got home I reported them to trading standards as they were still advertising the car on their website after it had been sold which is against the law. It remained on the website for several days after it had been sold. Karl Dobbs, via CarDealerMag.co.uk I KNOW exactly what you mean – sometimes I actually wonder if they want to sell the car at all. I emailed a gentleman once about a vehicle he had for sale and he promptly responded with a few answers to my questions. I then gave him a call and discussed it and said I’d like to come and see it. He said he’d get back to me – I was pretty keen so sooner, rather than later, was better for me. A few days later, still nothing. Emailed him again. No reply. Rang. No answer. Two weeks later I see the

Talking grass covered cars on Twitter Rather than selling it on eBay why don’t you have a penalty competition for motor traders? Obviously it will end up going abroad. via @BarrieCrampton

front? That must be a similar feeling to being a dolphin caught in a Japanese whaling net. via @motormorph

I think that’s a great car... Does it come with a blind ref in the boot? via @sf4d74

That’s certainly made things interesting. I’ll look forward to seeing what you can do with it. via @perrysmotors

Do you drive it with the net on the

James you’re officially mental for

buying that, but I’m behind you all the way. We shall chat about it in the next podisode! via @A1GOY Some mentalist will buy it, I’m sure! via @Dear_Blank The wife is definitely going to kill you! Looks great though haha. via @ferraridave 911 for 2011 latest, p42

Get involved. Follow the editor on Twitter @CarDealerEd or @CarDealerMag to join the conversation advert relisted, nothing’s changed. Er? Lewis, via CarDealerMag.co.uk

Lost leads for dealers

Link: bit.ly/Lostleads I AGREE with Tim and think live chat is a great tool. It’s part of the comms mix and influences conversion but is the issue not more fundamental – lead management? As Tim says: ‘People who engage with a business through Live Chat are 4.1 times more likely to convert than visitors who don’t.’ That may be valid but that’s the user, how effectively do the dealers respond where the channel is Live Chat, web leads, phone ringing etc. Our insights and analysis showed that with a particular brand over a certain period 22 per cent of their dealers took longer than 48 hours to respond to their web leads! Customers won’t hang around that long regardless of the channel! Tina de Souza, via CarDealerMag.co.uk

Audi headcams

Link: bit.ly/Headcams KNOWING that the customer is watching your every move, should ensure less mistakes are made and greater care is taken with every car. The headset link would also prove useful when the customer is trying to diagnose or show a particular problem to the technician. Sounds like a great idea! Justin Seymour, via CarDealerMag.co.uk

Buyers travel further

Link: bit.ly/Travelfurther IF YOU are a reputable dealer, then customers will have no problem travelling further to buy their car, whether it be used or brand new. Ford Direct ensures that your new used car will meet all original specifications and that any replacement parts are Ford approved. Tim, via CarDealerMag.co.uk

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Have you joined our Bangers4BEN adventure yet?

dashboard

Hill

Net gains

It’s not about what you’ve got but how you use it!

M HAVE you signed up yet? We’re talking of course about Bangers4BEN3 – our madcap rally to Monaco! The event will take place from September 12 to 15 and will see 30 teams driving from Dover to Monaco and back in bangers costing no more than £500. So far we’ve had 18 teams sign up to the event including some from the biggest dealer groups in the UK. Marshall Motor Group has signed up five teams to the event – just as it did last year – and they will be joined by bangers piloted by teams from Pentagon Toyota, Inchcape, North Oxford Garage as well as two teams from Nissan Motor (GB). Suppliers to the motor trade have also been quick to reserve their places. HPI will be fielding a team along with Shine! – last year’s winners by a country mile – Enterprise Rent-A-Car, Carlyle Finance and WinWin World. At the time this issue went to press, these teams, along with the Car Dealer and BEN outfits, meant 18 places have now been snapped up. How does the event work? Well, firstly you have to buy a banger for no more than £500 (we’ve upped the price this year to take into account the longer trip). It can

18 teams have signed up so far to take part in our trip to Monaco in £500 bangers cost less, it can cost more, but you must get a receipt that shows you paid less than £500 for it. Once we’ve completed our epic adventure we’ll sell all the cars in a special charity BCA auction and hand all the cash over to BEN. There’s a £500 entry fee that covers accommodation for two people (sharing), ferry crossings, evening meals and breakfast. You’ll have to cover the cost of fuel, tolls and insurance but that shouldn’t break the bank. There are also prizes to be won. There will be a gong for the overall winners as well as prizes for the best fancy dress and the best themed car. To reserve your place simply log on to ben.org.uk/Bangers4BEN where you can pay your entrance fee. This reserves your team’s place. If you’ve got any questions give the Car Dealer team a call on (023) 9252 2434 and we’ll do our best to help. We’re looking forward to seeing you on the start line in September!

Volvo officially in Chinese hands VOLVO is now officially owned by Chinese giant Geely following the acquisition of a 100 per cent stake from Ford. The completion of the deal was announced in a London ceremony on August 2. Volkswagen Group of America chief exec Stefan Jacoby will take over the role as president and CEO of Volvo Cars. He replaces Brit Stephen Odell, who’s heading for a senior role in Ford of Europe. Importantly though, Volvo and Ford will maintain close component and supply

relationships, ensuring continuity in areas such as platform and engine sharing. Geely chief Li Shufu said: ‘This is an historic day for Geely. This famous Swedish premium brand will remain true to its core values of safety, quality, environmental care and modern Scandinavian design as it strengthens the existing European and North American markets and expands its presence in China and other emerging markets.’ Geely paid $1.8bn for Volvo.

ost of you won’t know that in my spare time I’m a musician in a semi-pro band – mainly because I need a hobby and I can’t play golf. Musicians can be like golfers in that the temptation to buy all the tools or the latest gear can sometimes be overwhelming. From my experience, this can also be true of dealer websites – the latest technologies and tools are a ‘must have’. But a note of caution... Many amateur golfers think they need expensive clubs, but it’s the swing that matters, not the club. If you give Tiger Woods a set of beginner’s clubs he’ll still thrash you. Likewise, you can spend a fortune on the exact guitar set up of Eric Clapton, but when you begin to play it will still sound like you. With dealer websites, it is ‘With dealer very tempting to obsess over the tools and technologies websites, it is rather than what to do with very tempting them. So we end up with lots of irrelevant video or images, to obsess over or trying to pack the site the tools and with functionality that isn’t technologies.’ user friendly or helpful to the customer journey. In some cases leads are generated that are never followed up because no thought has gone into how to cope with customer enquiries from the web channel. I can understand the lure of this approach – it appears to offer short cuts to success on the web. To go back to the golfing analogy; it’s the equivalent of not wanting to spend ages on the driving range so you spend a load of money in the pro shop. The equipment is used as a crutch. In reality, you don’t need the best gear to be successful. It’s the content that really matters. For instance, you can spend a fortune on your website, but if the content is weak then your site will struggle. So don’t obsess with the latest tools too much. What really matters is how you can use your website and your wider web strategy to gain customers and make profit. The upcoming Ewards in this magazine will see the panel of judges (including yours truly!) examine the entrant’s websites using methods such as those outlined above. Content and customer journey will always win over bells and whistles. Look at the content on your site. Spend time evaluating it. Ask friends or family members that are unconnected to the industry to evaluate your site. Get independent opinions. Concentrate on fine tuning this aspect of your game and don’t just rely on spending a fortune in the pro shop... Ewards latest, p48

Who is Martin Hill? Martin is commercial director at Codeweavers. Learn more about how he can help you at Codeweavers.net or call 0870 443 0888.

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dashboard Going green with a bout of wind... power! PRESTIGE used car dealership Roy Humphrey Group will soon have wind – but don’t worry, it’s in a good way! The dealership, in Brome, Suffolk, which specialises in used prestige cars including Porsches and Bentleys, has just been given planning permission for two wind turbines. They will generate enough electricity to power the equivalent of 2,500 homes allowing the company to operate completely on its own power! ‘Even though the car industry is regarded as potentially a high carbon emitter, we all have a contribution to make,’ said Carl Humphrey, from Roy Humphrey group. ‘Our wind turbines could save more than 7,000 tonnes of carbon every year.’ Construction of the turbines at the Eye Airfield Industrial Estate will commence in 2011.

JAMES BATCHELOR

Twitter and Facebook key to dealers’ future success

If you’re not into social media you need to be, says Peugeot UK boss Jon Goodman DEALERS need to embrace Twitter and Facebook if they want to be successful in the future, says Peugeot’s MD. Jon Goodman told Car Dealer he believes social media is only going to be more important to dealers in the years to come. And he says by engaging now, dealers can steal a march on their rivals. In an exclusive interview with Car Dealer, he said: ‘Social media is very important. The way we interact with our customers is changing and that means it has to change for our dealers too. Dealers have to be aware of social media and about what their customers are writing about them locally online and how they interact with that. ‘This is one of the biggest challenges for the industry – how to deal with social media like Twitter and Facebook and use it to our advantage.’ He explained that the web has grown in importance drastically for Peugeot UK and that marketing spend will rapidly move away from

GADGETS

‘Dealers have to be aware of social media.’ traditional routes like newspapers. ‘The internet makes the job of the customer easier and that’s something that we have to do,’ said Goodman. ‘We’ve seen with used cars that leads are mostly generated online. More are coming from the web than the old three-page advert with loads of cars listed in the local paper. The web is light years ahead of the old press advert and that will only

continue to expand. When I look at the level of enquiries via our website and the way we can talk to customers through social media then I can only see it growing steadily in importance.’ Goodman added he’ll be working closely with his dealer network to improve their websites and added he wanted them to ‘promote themselves more’ online. ‘Some our our dealer websites are excellent,’ he explained. ‘But dealers need to focus on helping get across the services they offer and sell themselves a little bit more online.’

Full interview, p14-16 Ewards latest, p48-49

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Wake up with a bump to your favourite radio station Get up in the morning with a smile on your face with this Bumper Car Alarm Clock! Simply set the analogue alarm, tune it in to your favourite station and it’ll wake you up by flashing its headlights, a beep and your chosen breakfast show. And if you want an extra few minutes in bed, you can hit the bonnet to activate the snooze function. £24.99, caagis.com Video review: bit.ly/bumpercar At this time of year your air conditioning system really gets a workout – but when was the last time you cleaned it? The cooling system in your car is a hotbed for bacteria and viruses to grow, so you need to use a product like Comma Air Con Cleaner to tackle it. The can is placed in the passenger footwell of your car, you turn the air con to re-circulate and leave the cleaner to work its magic for 10 minutes. The product cleanses the system as well as deodorises the seats and carpets, bringing back that new car smell. £11.73, halfords.com

Who said Minis had no luggage space? These little city cars have loads of room – 2GB of room in fact! They’re USB memory sticks made to look like the classic and new Minis. The detail on them is superb, especially the classic Mini Cooper version in Monte Carlo rally spec. The USB stick is tucked away in its boot and you press a button on the bottom to eject it. Both come with extension cables for computers with hard to reach slots. Classic £28.99, New £23.99, autoregalia.co.uk Video review: bit.ly/italianjob Choosing a baby seat for your car is difficult – the choice is huge and the options baffling. But you can’t go far wrong with this offering from Britax. Called the Maxi Cosi Cabriofix it’s a rearward facing design that’s suitable from birth up to 13kg. It has an integrated sun canopy, built-in adjuster to suit your baby’s weight and boasts side impact protection. It can also be used with Isofix but will need an additional base that has to be purchased separately. £94.99, halfords.com [ Reviews James Baggott ]

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dashboard Vertu agrees to take on Seat site in Derby VERTU Motors has exchanged contracts to take on Seat’s Derby car dealer through a trade and assets purchase. The leasehold car dealer is being bought from GK Group Ltd, for a sum not exceeding £750k. This consideration mainly represents stock. It will complement Vertu’s existing Bristol Street Motors outlets in Derby, Nottingham, Leicester and Burton. Vertu CEO Robert Forrester said: ‘This new dealership in Derby is excellently located and adds to our brand’s presence in the region. ‘We are delighted to expand further with Seat, which we believe is very well positioned with its exciting and expanding product range. ‘The group has made a substantial number of acquisitions and are on track to provide a significant boost to the group’s long-term profitability.’

Inchcape’s profts rise 76 per cent in first half of the year INCHCAPE has reported a 76 per cent increase in profits before tax for the first half of 2010. This, says CEO Andre Lacroix, is proof of Inchcape’s broad geographic portfolio and diversified revenue streams. Many markets have experienced market share gains and strong vehicle revenues. What’s more, there is a lot of momentum in the aftersales business – which accounts for HALF the group’s gross profit. Profits before tax stand at a healthy £115.2m up to June 30, 2010. Compare this to the same period last year, where profits were £47m, for proof of how Inchcape has recovered. In bald terms, it is a 76.1 per cent rise, thanks to an 11.1 per cent rise in reported sales, which are up to £3.1bn. A clear strategy is helping the group deliver, said Lacroix, pictured right. ‘Inchcape’s competitive position continues to improve through our strategic commitment to superior customer service enabled by our operational focus on our top five priorities,’ he said. These are: • Growing market share • Growing aftersales

Share watch

‘The group has started to benefit from the industry recovery.’ • Reducing costs • Managing working capital • Selective capital expenditure investment. ‘The group has started to benefit from the industry recovery in several of its markets.’

Not that Lacroix is getting overbullish: ‘We expect the continuation of an uneven global recovery and so remain cautious for the second half of 2010. Austerity measures implemented by a number of European governments including the UK may affect consumer confidence and slow down the global recovery that is being driven by strong growth in Asia Pacific and the emerging markets.’

...in association with ASE-global.com

Caution persists in car industry T

he listed motor retailers have produced a mixed performance during July, mirroring the concerns in the sector over the future. The overwhelming message has been along the lines of ‘we’ve had a good first period, we are cautious about the remainder of the year, however we have structured our business to ensure that we prosper during what may be a difficult new vehicle sales period’. The share prices appear to be heavily driven by the day-to-day swings in expectations as to when we will emerge from the current slowdown, twinned with how successful the companies have been in delivering their message around their reliance on UK new vehicle revenue for overall profitability. This is allied to an overall concern over the debt reliance and balance sheet gearing of the motor retail sector. During July we have seen a very positive performance from Inchcape with the results for the first half of 2010 making attractive reading. The company delivered strong revenue and profit growth but remained ‘cautious’ over the second half of the year. The market has reacted well to the results along

‘The share prices appear to be heavily driven by the day-to-day swings in expectations as to when we will emerge from the current slowdown.’ with the strategic positioning of the company which has seen the share price rise nearly 30 per cent during July. Through having a widely diversified geographic portfolio Inchcape should be able to benefit from a global economic recovery faster than its UK peers who will be impacted by our current austerity environment. Having said that, the recovery in the Inchcape share price still leaves it behind the value achieved at the end of May, reflecting the dependence on whims regarding the pace of economic recovery. HR Owen has also reported trading ahead of budget for the first half of the year. This, along with the group

restructuring, which has taken place during the year, has seen the share price hold gains earned earlier in the year and rank as the top performing motor stock during 2010. Vertu has again been the most active business in the marketplace continuing the policy of a steady acquisition of underperforming dealers and working to turn them around. The share price has seen a continuation of falls suffered during July with the overall stock currently at a discount of more than 25 per cent to the 2010 opening position, albeit with limited volumes being traded. The remaining listed businesses have shown limited price movement during the month of July indicating that the market is operating a ‘wait and see’ approach to the recovery speed. A slower second half to the year has already been priced into the valuations and only a faster than expected recovery, or a dive in registrations should shake the prices from this pattern. If you have any questions on the above, call me on 0161 493 1930.

Mike Jones, ASE director

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interview

Good times He’s only been in the job a year, but has already made some big changes. JAMES BAGGOTT chats to Peugeot UK managing director Jon Goodman

We’ve just come out of a buoyant year for the car industry and a rise in VAT is looming – what are your thoughts on this strange in-between period?

1.9million units for 2010 – that’s a lot higher than many were predicting at the start of the year. What makes you think it’ll hit that? Around 1.75m

Like you I’d have probably made the conclusion scrappage ends and it’s a tough back end to the year. But what we’ve seen in May and June – the first months after scrappage – is a fairly buoyant market. I don’t think VAT will make a huge difference. We didn’t see a sudden upsurge when everyone knew it was rising again after the cut and I don’t think we’ll see a huge surge this time. It will just be a testing market and we’ll have to be at our best in terms of product offering and the service we give to the customer. I think there will be enough money around – people will just need to have the confidence to spend it.

was where most people were at the start of the year, but the first half has been much stronger than anyone anticipated and we’ve seen that continue. We’re expecting a small drop-off but I think we’ll certainly see 1.92m units this year. It is a hugely competitive market. What will be interesting will be how things pan out next year. I think March next year will be, for me, a key indicator as to where the market is going in 2011.

I hate to be gloomy, but a lot of dealers are saying to me that although the SMMT figures say the market is up, showrooms are empty. Is this something you’re seeing? Certainly traffic has lessened but I don’t think that’s just the last six months. I think traffic into showrooms now is very different. We, and the dealers, have to accept that. The customer now does their research on the internet, compares deals, then comes into buy. That means the conversion rates are much higher – but there are less people. We, as a manufacturer, do have to do a better job in terms of marketing and generating traffic for dealers. I’m not all doom and gloom – there’s just a big discrepancy about the dealers that are performing very well and those that are performing at a lower level. In a difficult market that gets worse.

Does that mean you think 2011 could be a tough year? I think it’s going to be a competitive year. But a lot will depend on what happens economically. The UK is intrinsically linked to confidence and that’s related to housing. If the housing market remains reasonable and we don’t see big declines in house prices, then that gives people the equity and potential to spend. By the same token I think the days of the credit splurge we had two to three years ago are gone. People aren’t simply going to whack it on a credit card then move on to the next one. Personally I don’t think that’s any bad thing. I’m not a profit of doom though saying that we’re in for a horrendous marketplace. I’m not going to say it’s going to be fabulous but I’m probably more optimistic than the average car manufacturer MD.

Would you like to see the scrappage scheme come back? I think the scrappage scheme was absolutely critical at that period. We got retail traffic coming into showrooms and the way

Some people are mooting a double dip recession – do you think this is likely? You pays your money, you takes your choice. What’s quite interesting is, having worked abroad, seeing the level at which the UK tends to talk things down. Why should there be a double dip recession? I don’t think there should be but we’ll just have to deal with it if it does come. The key thing to me is giving the people the confidence in the cars, in the offers that are available and the confidence to come out and look at them. We’re predicting a market around 1.9 to 1.95m this year. The June market was 20 per cent up, and the July market opened about level so the 15-20 per cent declines that everyone says might happen we haven’t seen yet. I think it will get increasingly difficult but we won’t see the massive drop this year that was predicted.

Name Jon Goodman Job title Peugeot UK managing director Age 46 Family Married, two children Drives Peugeot RCZ Lives Warwickshire CV Joined Peugeot UK in 1986 from university as a graduate trainee. Previous roles within the company include regional sales manager and marketing director. Was managing director of Automobiles Peugeot Belgium & Luxembourg from 2007, became MD of Peugeot UK in June 2009.

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‘The Peugeot dealer network isn’t making enough money right now, but it’s far better than it was 18 months ago.’ it was done – on 10-year-old cars – it meant we weren’t replacing the standard new car buyer, it was bringing in people who hadn’t bought a new car in years. It sustained the industry and got dealers back to retailing new cars but I think you have to get to a point when you say that’s it, because otherwise you’re living on false promises. I don’t think it has a place now, and I don’t think the government can afford it now. It’s down to us to drive forward the industry in a sensible way.

Is there a car from another manufacturer that you would put a Peugeot badge on? That is a question and a half! There are cars from other manufacturers that I admire. I like the Mini, but I wouldn’t put a Peugeot badge on it. I think a lot of the Audi range is very good. I like the fact there’s clarity and consistency in the range, but they’re Audis and I’m very focussed on what we do, and how we can do it better. For the moment I’m delighted with the range we’ve got and, knowing what’s coming through, making sure our dealer network has got a range they can move forward with. For me our dealer network is the customer face of the brand, they are the people who deliver our brand and what they’re interested in is knowing they’ll have Peugeot cars that they can be excited about presenting to their customers. We’ve given them a glimpse of that lately with three brand new cars which have done exactly that and they know there’s a whole host of new product coming every six months for the next two-and-a-half years.

Your dealers must be delighted with the RCZ. Have you had to cope with demand outstripping supply? We could certainly do with some more. We’ve been given an allocation of 2,500 for this year and we might get a few more than that, but we’ve already sold in excess of 50 per cent of that. We do need to be aware though that this is a different type of car and that buyers will be prepared to place an order and wait. It’s not a car necessarily that you will sell straight out of stock so we’ve taken a different approach. It’s great to see the excitement on the face of the dealers and see the fabulous job they’re doing with the car. It’s given them a great shot in the arm. >

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interview What do you think the Peugeot brand stands for now? For me it’s about style, it’s about passion, inspiration. The French element to it incorporates all of those things. But a modern Peugeot is also about the quality. Perhaps in the past that hasn’t been its strongest forte. Our new cars are not only great to drive but they’re well put together. Now we need to keep that passion, excitement and inspiration as that’s what differentiates Peugeot from any other manufacturer. I want people to look at a Peugeot and go ‘wow’, when they drive a Peugeot to go ‘wow, that’s a fantastic car to drive’. And I think our three recent cars: 3008, 5008 and RCZ are absolutely bang in line. If I had to pick the car that summed up Peugeot and where we’re going it would be RCZ.

That’s a car fighting for sales alongside the Audi TT, does it mark a move towards the premium end of the market? No, I think we are a generalist manufacturer and we always will be, but there has to be some standouts in our range. I want people to realise we’ve got a stand-out car but that does not mean premium prices. We want to have a brand that has general appeal.

What do you think your dealer network does really well? I’ve known the Peugeot dealer network in the UK for 24 years, I grew up with the network and it was these dealers that got us to 8.5 per cent market share. And it’s this network that has suffered as we went down to 5.19 per cent last year. They are great ambassadors for the brand when they believe in it. But I think perhaps, in recent years, that’s taken a hit. The primary challenge for me was to reinforce the fact we work hand-in-hand with the network. We’ve seen a great reaction to the new product and the dealers are taking those to market in a good, aggressive way and their belief in the brand is coming back. When they believe in the brand they’re as good a network as there is out there and will turn that belief into sales.

What are your dealers focusing on this year? Well I think there are three big challenges for the network. One is aftersales. Cars are more and more reliable and the number of visits with two-year service cycles, mean dealers are seeing customers less. The challenge has to be how can they increase their servicing hours with marketing. I think the network undersells a little bit the expertise it can offer. Second big challenge is to get back into the good habits of retailing. In the past two or three years we’ve been too involved in used – I think we got the balance wrong and were far too focused on used retail. Used will remain an opportunity but I want dealers to get back into the habit of selling new retail. The third big challenge is improving service quality. We have to accept that while we’ve improved in levels of service quality we haven’t improved enough. We have half of the network doing a good job and half that aren’t. We have to improve here if we want to retain customers and get them buying their second, third and fourth Peugeots. We can’t rely on 60 or 70 per cent conquests every year as that just isn’t sustainable.

How do you rate Peugeot’s performance so far this year? At the end of the day we all want the

‘We have half of the network doing a good job and half that aren’t. We have to improve if we want to retain customers.’ same thing – for Peugeot to progress in the UK. I will not succeed in my aims to get Peugeot’s market share up without the dealer network coming with me. So far this year we’ve had a good first six months, sales are up and market share is up. Having had six years of market share declining it’s important to take a moment and say ‘hey, look we’re back on the move’. We haven’t got everything right, there are many things we’ve still got to work on, but we’ve actually broken the cycle of moving backwards – now we’ve got to keep that momentum going. This year I think we’ll be somewhere in the region of 5.5 per cent market share but it all depends what happens to the retail market. Some manufacturers seemed to have a flurry of customers at the end of June, but I’m not going to get into the pre-registration exercise. If we achieve 5.5 or maybe 5.6 that will be up from 5.19 last year and a very good progression for us.

What sort of return on investment are your dealers making? It varies. For the first six months of this year it’s just over one per cent, but a portion of the dealer network are losing money and at the top end some are making exceptionally good money. If you look at the upper quartile they’re up there with the best in the industry with well in excess of two per cent. Some are making three, three-and-a-half per cent. But those dealers

that are losing money have to be a key focus of our attention. We’ve just spent a whole period renovating our dealer network. We’ve chosen our 250 partners and some of those aren’t making enough money. We need to look at every part of the business to ensure they are generating enough money which enables them to invest. The Peugeot dealer network isn’t making enough money right now, but it’s far better than it was 18 months ago. Dealer numbers have been cut from 320 three years ago to 250 by the end of this year. We had too many dealers which made it very difficult for profitability.

You’ve recently announced the 508 – what are your hopes for it? The key factor for me is making sure we get residual values right and that our dealers are geared up to selling it to local businesses and retail customers. The ride and drive of the car is very Peugeot-esque and build quality is remarkable. I’m hugely confident this is a car that can get us back into the M2 segment in a big way. Our range of cars is expanding at a rate that Peugeot has never seen before. Our next car is 508 and we’ve got a diesel hybrid after that which makes a completely different statement about where we’re going.

And finally, what’s your one message to the Peugeot network? Believe in the franchise. We’re going forward, but we need our dealers to do that with us, and focus 100 per cent on the level of customer service they offer. If we can bring that level of customer service up we’ve got an exceptional future ahead of us. [CD]

See a video of our interview with Jon Goodman by typing bit.ly/Goodmanchat into a web browser

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Peering into the lives of the motor trade...

On The Spot Name: James Edwards Age: 33 Lives: Coventry Any family? Wife, Nicki and son Tom-Ellis, six years of age.

What do you drive? Ford Mondeo. What was your first job? Travel consultant for Thomas Cook.

What was your first car? Austin Metro. Who do you work for now? HPI. What does this involve? I look after the HPI Finance Gateway product. My main areas of focus are managing the strategic and operational relationships with our finance company partners and other suppliers as well as managing the Gateway account managers in the field.

What would you say are your job’s biggest challenges? As a consequence of the diminishing number of lenders and lack of liquidity in the automotive sector it is important that I understand the needs and desires of all of our lender partners and ensure our on-going strategy dovetails into each of theirs.

Any downsides? No – the team at HPI are extremely supportive of one another and I never come across any issues that between the team we haven’t been able to resolve.

How much do you earn? Well, all I would say is that providing I grow revenue and profit I am happy. I’m delighted with the way 2010 has started! Do you have an average day and how does it pan out? No, every day is different. One day I may be visiting some of our dealers, the next meeting with one of our lenders and then back at headquarters in Salisbury with the Gateway Team. The variety of things I am involved in is a huge appeal of my role.

‘I believe there is a very real need for dealers to have access to competitive car finance for their customers. ’ What’s your mobile phone ring tone? Nothing exciting I’m afraid – whatever the factory default setting was when I got it.

What was the first record you bought? What newspapers/magazines do you read? Occasionally in the week if I have time the Daily Mail, but I always have the Sunday Times at the weekend. I am a Formula 1 addict and enjoy reading any publications on the sport, in particular Autosport.

What is the most expensive thing you’ve ever bought? Since the day I could drive I have always had access to a company car so have never had the need to buy a car, so it would probably be holidays. Before my son was born, the Indian Ocean region was a regular haunt for me and my wife.

A F 6

I do remember this – it was Don Henley the Boys of Summer.

What’s your favourite film and the last one you saw? I tend not to watch many films but

What is the biggest challenge car dealers face? Having spent 12 months talking to all sizes of car dealers, the fact that many automotive finance companies have either merged or exited the market has left little or no options for many dealers. I believe there is a very real need for dealers to have access to competitive car finance for their customers.

I can say that my favourite film is the Green Mile. I’ve watched that a fair few times.

What would be your number one tip for car dealers? One from my days of selling cars,

Favourite football team? Swansea City.

but I still think it’s the case today – always make sure you allow sufficient space for your customers to park.

Favourite drink? A simple Midlands lad... a cold Carling!

And finally, what’s your motto in life and business? Accept what you

Favourite holiday destination? For a family

can’t change and change what you can’t accept.

holiday, as I do now, I love Menorca.

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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comment

Making money out of fluff Terry

Hogan W

hen many decisions in PLC environments are made by the financial director and the board, how do you convince them to spend good money on fluffy stuff like social media? It’s hard to measure, it’s risky and can blow up in your face. In fact it’s not even real – what does it mean anyway? Is it just chatting online with your mates, or can you show actual results that make money and build your brand? We’ve been investing a lot of time and energy in social media, or social search as we tend to focus on, and we thought we’d share a little of what we’ve learnt. The first thing we’ve learnt is that Twitter doesn’t send you many visitors... yet. Does this mean you should ignore it? Absolutely not. While you’re not going to be able to use it to sell hundreds of cars, you can mine it for useful information, like searching for people who are using terms like ‘ buy car’ or ‘buy Ford Fiesta’ in your locality, and direct messaging them. You don’t have to be a tech wizard to do this, just go on twitterfall.com and use a bit of common sense. If you sell a car or two you can then show that it works in real time. You can also impress your board by following your competitors and reporting back on what they are doing. People often let slip a little too much when they are being social online. Social sites and general search are converging, with Twitter having just launched a ‘hot deals’ feed in the US – twitter.com/earlybird – and Facebook has started to do contextual pay per click adverts, although the matching up of ads to content is not fantastic, it will only take a little time until they get it right. Try out a few services like this, and see if you can get a return.

‘It’s hard to measure, it’s risky and can blow up in your face. In fact social media is not even real.’ It’ll be easier to combine paid social search with social media and get agreement when you have factual data from these sites. We’ve also found that budget is still king. If you want to establish a presence, you’ll have to spend money. It’s no surprise that the biggest brands have the largest followings on Facebook, when you can place an advert, get people to click it, and they ‘like’ your page and get instant paid followers. But at circa 50p per click, it’s not

cheap when they may not be even necessarily visiting your site. Perhaps the simplest way to show how social media can make money is just to do the basics on your own site. Add a Facebook login so users who are already logged into Facebook can log into your site with one click. With younger users permanently logged into this social giant, you can increase your CRM database easily, and show the powers that be numbers they understand. ‘We gained 500 new email addresses and sent 1,000 emails earning the business £400 pounds this month,’ sounds much better than ‘everybody else is doing it’ as a justification. You can then slowly integrate more deeply, growing your user base, and get buy-in from the board over time.

Kevin Gaskell interview, p50

1R IRU 1HZ &DUV

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big mike

How I miss Roger the Bodger and his tricks of the trade C

all me old-fashioned, but I lift the bonnet of a car these days and short of working out where to put the various fluids, I’m at a complete and total loss. I know the principle’s still the same – an internal combustion engine sucks, slurps, bangs and blows no matter whose posh badge is on the bonnet – but to someone like me, who was bred on points, plugs and condensers, a multiplex of wiring not dissimilar to the London Underground map is well beyond the scope of my comprehension. On the plus side, of course, modern engines are generally much more reliable. Poor running is usually down to a faulty sensor or two, and if you can’t afford expensive diagnostic equipment (which most car makers deliberately make different in order that you can’t) the best thing you can do is borrow an identical car from another trader to plug and unplug them all until you find the one that’s gone on the blink. Then nick the part from him, and return the car. All this is very well, but it does mean that one of the arts of the used car trade is dying out – the good oldfashioned bodge. If I’m honest – and very occasionally I can be, even if it’s not a car dealer’s style – this is probably a good thing. It protects the customer, and it protects the dealer, as the days when you could punt out any old knackered heap of metal and wash your hands of it straight afterwards are long gone. But gone, too, are some of the stories... I had a mate, more of a father figure, really, when I first started out, who I called Uncle Roger. Roger was known to his mates as Roger the Bodger, for reasons soon to become apparent. And he was nothing if not resourceful. Sometimes, Roger’s solutions to problems were ingenious. He had a particular trick with overhead cam BMW engines that I used on many an occasion myself on cars bought from the auction, from which most traders walked away as they heard the dreaded camshaft rattle for which the breed became infamous. The fault normally lay in the camshaft oil spray pipes, which would become blocked through poor maintenance and irregular oil changes. Don’t try this at home, but the technique was to simply overfill the car with oil and, in Roger’s parlance, rev the hooters off it for a good 10 minutes, whereupon the build-up of oil pressure would blow any blockage out of the way. It didn’t do much for the breathers, admittedly, and occasionally would blow holes in exhaust systems, but only once did I ever see the trick fail to work. Some of his other bodges, though, were less successful, and offered a little less in the way of mechanical sympathy to the car. Back in the Seventies, good old direct-drive live rear axles were still very much in vogue, and the kings of the cost-cutters – Ford and GM – always ensured they were built to a price. After a few years of use, the rear axles would get progressively more noisy as their inner workings came slowly apart, to the extent that in extreme cases the movement would create static interference on the

‘An irate customer returned a Vauxhall Viva that had a mysterious white substance on the differential casing, which looked not dissimilar from a fried egg...’ radio (quite why the BBC’s third most popular station, Five Live, is still on Medium Wave is beyond me, but that’s a rant for a different day). Roger’s trick was to split the rear diff and fill it up with a substance other than oil, that would hopefully limit some of the movement and make the thing quieter to sell. The move would dramatically reduce the axle’s service life, but once it was out of the gates, Roger didn’t care. But this bodge did spectacularly fail him once, when an irate customer returned a Vauxhall Viva that had a mysterious white substance on the differential casing, which looked not dissimilar from a fried egg. When Roger offered little in the way of assistance the owner took the car to a garage for a second opinion, which concluded that the substance actually was, in fact, fried egg. Inside the differential housing was not Roger’s usual supply of sawdust and grass, but a clump of hay that was conveniently lying around outside his workshop. Little did he know that inside it was a bird’s nest... Happy days. Anyway, I have to dash as there’s a Honda Accord on my lot with a cracked coolant expansion tank, and I’m mulling over whether to try melting it back together with a fag lighter, or plugging the hole with chewing gum…Toodle pip. Who is Big Mike? Well, that would be telling. What we do know is he’s had 30 years in the car trade and picked up some seriously funny tales along the way.

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3/2/10 17:00:15

finance

...in association with

C New dealer directory showcases finance FLA chiefs are promoting the advantages of dealer finance with a new online Dealer Directory contact guide. Made up of all car dealers who meet the SAF Approved accreditation system, the Dealer Directory is aimed at helping car buyers seek out the best type of finance deal for them. The flash new web aid does this by pointing buyers to dealers whose staff are proven to understand the world of car finance. The criteria? Success in the SAF test devised by the FLA. The idea behind it is to improve consumer confidence in car finance. All too often, negative stories of finance gone wrong make the consumer headlines – and in so many cases, greater understanding on the customer’s part could have helped avoid such sticky situations. By fully explaining car finance, the FLA is facilitating better and more informed discussions between dealer and buyer. It’s a simple online gadget to use. Car buyers enter their postcode into the directory. It calls up the names, addresses and telephone numbers of the five nearest SAF Approved dealers – with an interactive map with each dealership’s location. How many are in it at the moment? Nearly 500 SAF Approved dealerships across the UK – where nearly 10,000 SAF Approved finance experts are on hand to advise car buyers about the many different types of car finance. Paul Harrison, head of motor finance at

the FLA, underlined the message: ‘Because the Dealer Directory only lists dealerships that have reached the SAF Approved standard, if a car buyer visits a listed dealership they can be confident they will speak to knowledgeable staff that can provide reliable advice on their options. I hope the standard of car finance advice will continue to improve as more and more dealers sign-up to SAF. ‘Our new directory will help raise consumer awareness of what the SAF brand stands for in helping people to get the best possible car finance deal.’ Don’t forget the SAF test is central to the Dealer Directory tool. The test does not teach staff how to sell finance but aims to improve their overall finance knowledge A demand for (free) annual retests by all members is consistently growing the reputation of the car finance business. Car buyers know SAF Approved dealers will not only have proven financial understanding once, but will have done it on a rolling basis. It’s why Harrison is encouraging customers to look out for the SAF Approved logo in showrooms and local advertising. ‘The SAF logo is a kite-mark, letting consumers know that the advice they receive is of the standard set by the FLA – the representative body for the UK motor finance industry.’ Naturally, all this is giving those dealers a competitive advantage, as well as a highly creditable form of advertising from an independent source – for free!

Sutton

Money talks

Change is coming – be ready!

e’re just over half-way through 2010, but it’s already shaping up to be a pivotal year. In the last couple of months alone we’ve had a general election and the UK’s first ever post-war coalition government. In sport we’ve had the World Cup, Andy Murray once again raised and then dashed our hopes at Wimbledon, while the young South African, Louis Oosthuizen, won a thrilling Open Golf Championship in St Andrews. Clearly all these events have winners and losers. External factors of course play their part, but winners seldom succeed by chance. One of the key components of achieving success is preparation. Forward planning is always a wise move, but it’s even more essential when there’s a change on the horizon. I’ve spoken before in this column about the forthcoming change facing the industry in the shape of the Consumer Credit Directive (CCD). We’re making sure our dealers are kept up-to-date on this subject every step of the way and will continue to do so throughout this year and next. The new regulations will introduce a requirement for dealers to provide customers with greater pre-contract information and to include a verbal explanation of the contract at this stage. There will also be new forms of credit agreements and clearer guidance about the risk a particular agreement carries, as well as the consequences of failure to pay. It’s no understatement to say that this major piece of EU legislation will have a huge impact on the industry when it comes into force at the start of February 2011. Although that might seem some time off, it’s essential that dealers take steps to implement this change now, as we have done at Black Horse. We will offer our dealers an informed and helpful interpretation of the new legislation, and we are aiming to minimise the level of disruption to dealers’ businesses. We’re implementing the changes laid out in the CCD at the end of November, which gives you December’s quiet period to acclimatise to the system. Our sales teams will undergo training at the end of September, so they will be fully up to speed on the impacts of the legislation. Then in October and November they will support you to prepare for these changes to ensure that you’re on the winning side.

Who is Chris Sutton? Chris is managing director of Black Horse Motor Finance

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/10 17:00:15 CarDealerIss30.indd 25

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finance

Deal finder

Finance news Car Dealer rounds up the latest stories from the world of car finance

Don’t risk losing your credit licence CAR dealers who do not implement the European Consumer Credit Directive risk losing their credit licences. Car industry consultant rts says the deadline has been extended to February 2011 – but car dealers who are not already working on implementing it could be putting their credit licences at risk. ‘The new directive is significant and means dealerships will have to make changes to the way they enter into agreements with their customers, as well as the agreements themselves,’ said John Brannigan, MD of rts’s financial arm FIMTRAC. ‘Rather than wait until the 2011 deadline we would urge lenders in the industry to start giving the additional rights to consumers as soon as possible.’

Late payments causing problems CAR industry business failure rates have continued to fall in June 2010, reports information firm Experian. However, the number of late payments has actually RISEN to the highest point since December 2008. This is stemming the improving financial health of the car industry, says Experian’s Joe Myers. ‘Although the insolvency rate is much better than this time last year, there’s no doubt poor payment performance in June had an adverse affect on the financial strength of the industry,’ he said. The number of insolvent businesses in June was 31 – a big drop on 2009’s figure of 44. But the number of ‘days late’ after finance payments were due has increased to 17.01 – and that hasn’t been this high since December 2008. As an indicator of business confidence, this has caused a slight decline in the year-onyear financial strength of the industry. So, what can car dealers do about this, to help themselves and others? ‘Stay within their payment terms,’ is Myers’ simple answer.

Sportscars

Nissan 370Z Roadster GT Nissan really has stolen headlines recently, by none-too-subtly challenging the German establishment! Its ‘Kaiser Chiefed’ viral ad campaign was all about showing off how much more powerful the 370Z is; that 3.7-litre V6 is certainly pretty effective, albeit thirsty! It doesn’t cost that much less than the BMW or Mercedes, mind, although it does make up for this in GT trim with a welter of standard equipment. It is the odd one out here in having a folding soft-top roof, but this only adds to its classic sporting air. Nissan knows how to put together a finance special offer package, too. On Nissan

Preferences, £349 a month for two years is pretty impressive – particularly when not a single penny is charged in interest! Customers need to put down £8,732 to get the zero per cent APR PCP deal, with an optional final payment of £16,997.

Specification Model: 370Z Roadster GT Price: £33,745 Engine: 3.7-litre V6 0-60: 5.5s Max speed: 155mph MPG: 25.2mpg CO2: 262g/km

Mercedes SLK 300 The SLK is the oldest car in this trio, but it doesn’t look it. A discreet facelift has kept it looking fresh, complementing the pretty lines that carry ample SLR and SL kudos. Its folding hard-top was the reason why BMW had to follow suit, and works as well as it’s always done. The rear-drive chassis is biased towards comfort and cruising ability, but it is nevertheless well balanced and satisfying to drive. Quick, too, with the 3.0-litre V6 helping it outpoint the BMW (though it also consumes more fuel while doing so). Mercedes also sweetens things with some keen finance offers. The SLK 300 is available on 5.8

per cent APR PCP finance, with a headline £379 monthly payment if the customer can put down £4,599. This time, Mercedes dealers match it with a £3,107 sum. After 36 payments, the customer can purchase it outright by paying £16,575.

Specification

Model: SLK 300 Price: £34,500 Engine: 3.0-litre V6 0-60: 6.3s Max speed: 155mph MPG: 29.7mpg CO2: 220g/km

BMW sDrive23i M Sport BMW is on its second generation of Z4 – throw in the earlier Z3 too, and it’s third time lucky for the brand. The previous two versions of the two-seat rear-drive roadster have been disappointing; the first, too soft, the second, much too firm. This time round though, BMW has got the balance just right. It’s sportier than an SLK and TT, but not as focused as a Porsche Boxster. And thus strikes the ideal balance for BMW’s customers. BMW packages it up with a 9.5 per cent APR PCP offer. 34 monthly payments of £419 are on offer if buyers put down £6,500 – dealers will throw in an extra £2,817 here. With a final

payment option of £16,489, the total amount payable by the customer is £37,828; future values will be more secure too, thanks to the M Sport trim’s desirability and BMW’s special-offer inclusion of Extended Kansas leather upholstery.

Specification Model: sDrive23i M Sport Price: £34,945 Engine: 2.5-litre straight 6 0-60: 6.6s Max speed: 150mph MPG: 33.2mpg CO2: 199g/km

MOTOR FINANCE MADE SIMPLE blackhorse.co.uk

Finance subject to status. Indemnities may be required

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...in association with

Finance news Car Dealer rounds up the latest stories from the world of car finance

ACF Car Finance is backing BEN ACF Car Finance is the latest big firm to sign up for the Dealers Backing BEN charity fundraiser scheme. Already a strong BEN supporter, the sub-prime car dealer will now further formalise donations to BEN under the scheme. ACF’s Norman Beaumont said the simplicity of the scheme was a key reason why he’d signed up. He said: ‘This is a very well structured initiative and we would encourage those dealers who don’t currently support their industry charity to take a look at this and support the people in our industry who need it the most. ‘Collectively, dealers working together on this would make a huge difference to BEN.’ The scheme sees auction houses deduct £1 from the sale proceeds of each vehicle sold and handing that cash to BEN. 911 for 2011 latest, p42

Dealer finance up 15 per cent CAR dealer finance was up 15 per cent in May as more than half of car buyers took it up. This has allayed fears from the FLA that the end of scrappage would lead to a drop-off in buyers. Indeed, a tentative economic improvement has also seen the number of businesses using dealer finance grow too by 21 per cent in May, the latest figures available show. Furthermore, 52,000 used cars were bought on dealer finance. Paul Harrison, head of motor finance at the FLA, praised dealers for their proactive role here. ‘Dealers are offering value-for-money deals, which have kept customers coming through the doors,’ he explained. This has meant that the amount of dealer finance provided to consumers for new cars has grown by a fifth in the past 12 months compared with the previous 12-month period. He nevertheless sounded a word of caution: ‘We expect to see sales of new cars on finance drop off later in the year while used car finance sales will pick up as second-hand stock becomes more available.’

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[Forecourt]

RoaD TesTs iN associaTioN WiTH

Open for BUSINESS The lid’s been lifted on the Abarth 500C, but is the spicy hot hatch better sans roof?

f you like your motoring with wind in the hair and lashings of excitement, then the Abarth 500C will be right up your street. The maker – Fiat Group’s performance arm – has just unveiled the drop-top version of its potent little city car and we’ve climbed behind the wheel. Packing a 1.4-litre 16v turbo-charged engine with 140bhp, the 500C may look small but punches well above its weight. That T-Jet unit is capable of propelling the car to 60mph in just 8.1 seconds and on to a top speed of 127mph – all while you soak up the rays with the top rolled back. Abarth has stiffened the windscreen pillar to cope with the fabric roof, which folds back electrically like a long sunroof. It concertinas away, bunching up above the rear tailgate when not in place. The problem is, with the roof down, noise levels are high and the buffeting at speeds the little Abarth is capable of reaching can be uncomfortable. The electrical mechanism works quickly and at town speeds can still be operated, but for fast paced roads and motorways you’ll need the lid shut. The 500c really is a true hot hatch though – it feels a lot quicker than the 8.1 second to the 60mph time suggests. On the road, two roarty exhausts sing the car’s intentions and the engine has a pleasing growl to it when stretched. It grips superbly too and on a race track – where professional drivers demonstrated to us what the Abarth was really capable of – it was clear the car is entertainingly quick. But it’s not all good news. From

launch only a semi-auto flappy paddle gearbox will be available and sadly it’s not up to the job. In automatic mode, changes are slow and irritating. Flicking the sport button on (a button you should rarely turn off) and using the paddles will see things get a little better – but you need to lift off the power every time you change. And even then it’s still jerky. The good news is a manual gearbox – which is good in the hard-top Abarth 500 – will be available from November. Despite those impressive performance figures, the 500C is still quite frugal – it’ll do 43.4mpg on the combined cycle and emits 151g/km. Specification is high too with xenon headlights, parking sensors and Blue&Me connectivity all standard. Abarth told us that an Essesse performance upgrade will be made available in November. This will boost power to 165bhp and reprogram the gearbox for faster shifts, but we can’t help thinking the standard car needs the upgrade already. It really is hard to see past that annoying gearbox and that’s a real shame as there’s little else wrong with the £17,500 Abarth 500C. It’s fast, comfortable inside and most importantly isn’t a Mini Cooper S – and for buyers looking to stand out from the crowd that could be just the hook Abarth needs to find it homes. [JB]

Abarth 500C Price: £17,500 Engine: 1.4-litre, turbo Power: 140bhp, 206Nm Max: 127mph 0-60: 8.1s Combined: 43.3mpg recommends Mobil 1 New Life 0W-40 top up packs for this vehicle. See Mobil-1.co.uk for more details

F L c A w

See a video of the 500C put through its paces by a pro by typing bit.ly/abarthontrack into a web browser

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[Forecourt] Porsche ramps up the pressure with a showroom-pleasing Turbo S

emember how we were incomprehensibly blown away by the Porsche 911 Turbo? 500bhp of awe-inspiring performance, handling to similarly astound and an overall desirability that plain hurt? Well, Porsche has only gone and done it again… How? By giving the 911 Turbo even MORE power! Making it EVEN faster and EVEN more expensive. This means it will be EVEN better and EVEN more inaccessible for us. And, having driven the 911 Turbo S, that leaves us in plain agony. The stats are stark. 530bhp. 50 per cent more turbo boost than standard, torque up to 700Nm. It means the mighty Turbo S, which comes fitted as standard with the PDK semi-auto gearbox, launchcontrols its way to 60mph in 3.3 seconds. We seem to remember repeating the standard Turbo’s acceleration stats in awe. This, though, is something else again. It’s probably the closest we’ve yet got to finding out just what it must have been like to drive a McLaren F1. It is no wonder Porsche expects 75 per cent of 911 Turbo sales to soon be the Turbo S model. As the marque’s dealers already know, most Porsche buyers fit a load of options that come on the Turbo S as standard to their new cars. Such as, well, the PDK gearbox, Porsche Torque Vectoring system, Sports Chrono lap-timer, adaptive sports seats, flashy leather and so forth. Conveniently, all are fitted as standard here, taking the list price up to £123,263. This is a fair chunk more than a standard Turbo, but as nobody ever buys a mere ‘standard’ one, it’s much Porsche 911 Turbo S closer to the actual transaction Price: £123,263 Engine: 3.8-litre, twin-turbo price for many. Which means, as Power: 530bhp, 700Nm Porsche points out, the power and 0-60mph: 3.3s performance boost is effectively Max: 195mph for free! How’s that for a Economy: 24.7mpg showroom sales proposition… Particularly when the results recommends Mobil 1 are so dazzling on the road. New Life 0W-40 top up packs for This car feels incredibly fast, as this vehicle. See Mobil-1.co.uk you’d expect. This performance is for more details deployed with more rawness as well. At low revs, you are aware of some turbo lag, but that’s partly due to the intensity of the power once there. It comes with not just a rush, but a dragon-like roar. It ‘feels’ more heavily turbocharged; more like an older, classic 911 Turbo. Choose high revs and there’s much less delay, just a staggering ability to leap forward and very, very quickly close on its 195mph top speed. Deploying it is fearless thanks to the four-wheel-drive. For some, it will be too easy – they’ll yearn for a GT3’s involvement, but there’s no doubting it’s impressive. The PDK gearbox helps, too. Porsche says nine in 10 Turbo buyers choose it anyway, so it’s an obvious standard fit. Porsche even fits steering wheel paddles, for the first time in its history. Suspension is the same as the regular Turbo. All Porsche has done is fit lightweight RS Spyder-style wheels, plus ceramic discs. These cut weight, so help the suspension work more effectively. It’s extremely composed and stable, the ride is sportingly decent and the steering feel is, of course, superb (if not GT3-intense). Already a must-have, the clever torque vectoring system is standard here as well – it is this that makes the Turbo S so agile and so able to use its massive power. Quelling understeer, the system enables you to turn in and feel the front end bite; even better, power on hard through bends and the car really digs in and grips. Good job the bolstered sports seats are standard, then. Indeed, in some ways, it might be too ‘easy’ for dealers to remember. Visually, changes are restricted to the wheels, the badge on the back, and the ‘Turbo S’ script dotted here and there on the inside, too. Those who think their £123k will buy something totally bespoke-looking will be disappointed. This is a tuned-up model for driving enthusiasts first. People such as us. Which means it’s amazing that it’s here – but, at the same time, made writing this all the more painful!

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Road tests in association with

From every angle, the Turbo S looks menacing – and this is one car that’s got the go to match the show

PORSCHE

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07:53 AM

[Forecourt]

Road tests in association with

Show boating It’s the staple fodder of Mitsubishi dealers for all the right reasons. We try out the lightly refreshed model

Mitsubishi Shogun Price: £34,999 Engine: 3.2-litre, turbo Power: 193bhp, 441Nm Max: 111mph 0-60mph: 11.1s Economy: 33.2mpg recommends Mobil 1 ESP Formula 5W-30 top up packs for this vehicle. See Mobil-1.co.uk for details

n a world dominated by ever-softer, ever-more lifestyle-focused SUVs and crossovers, it is good to see one brand still makes a ‘proper’ off-roader. The Mitsubishi Shogun may not be the flashest kid on the block – and certainly not the newest – but there’s no denying the smack-in-face non-subtlety of its impact. Mitsubishi dealers swear by the Shogun. Out of all their models, it is this that breeds some of the fiercest loyalty from customers. Since the inception of this bodystyle in 2001, some buyers have gone for one new one after another: to them, it is the only 4x4 that really matters, which is music to the ears of a local dealer. Not that Mitsubishi is resting on its laurels. Fair enough, the Shogun is for those who put function before fashion. They are bought by people who need a tough, dependable tool for hauling horseboxes as much as mixing it on the school run. They’re not bought by mugs though. That’s why Mitsubishi has given it a power hike and an all-round polish in time for the 2010 winter season. It doesn’t look much different, mind. It was facelifted, successfully, a few years back, getting a new outside look and transformed interior. This continues for 2010, offering clear reasons for drivers of the old one to trade up. Beneath the surface is where the changes have been focused this time around. The 3.2-litre four-cylinder diesel is agricultural compared with the V6s you’ll find in many mainstream rivals but tough, powerful and dependable; even more so now, with a power increase to 193bhp. Torque is even more colossal – it is now a thumping 441Nm. Acknowledging the fact Shogun buyers are more interested in substance than style, news that the extra power extends the towing capacity by 200kg to 3,500kg is likely to be of real interest to customers. It’s also now paired to a new five-speed auto box in all but the basic Equippe versions, for much improved emissions and fuel economy. Economy has actually been transformed. Fuel consumption improves thanks to engine revisions including low friction oil and an ‘intelligent’ alternator, official figures improving from 26.7mpg on the outgoing car to 33.2mpg on the new one. Keep it in two-wheel drive for maximum economy too – it’s three per cent

more efficient in this mode! CO2 is down by a fifth on auto versions, from 280g/km to 224g/km. Mind you, from the moment you turn the key and feel the big four-cylinder engine send a shudder through the Shogun’s frame you just know the driving style is going to be somewhat unsophisticated and so it proves. There’s plenty of power but the engine is gruff, the steering slow and heavy and the overall weight is telling. If buyers are looking for a more refined and dynamic car-like experience they’ll buy a Touareg or something along those lines. Five-up, it’s a comfortable and relaxing cruiser though, the weight smothering the worst of the bumps and the ride acceptable. Its real strengths lie elsewhere. The ride height has been dropped slightly to help improve the aerodynamics but what the Shogun lacks in fancy pants variable ride height suspension it more than makes up for in good, old-fashioned toughness. It sure does the business off-road. Owners are happy to use it as such, too: they swear by its reliability and toughness – worth bearing in mind given the Discovery’s recent slating in a Which? Cars reliability survey. At just shy of £35,000 for our tested long-wheelbase Elegance spec test car the Shogun is bang on the money compared with the Discovery, Land Cruiser and Jeep Cherokee. The Nissan Pathfinder is cheaper but feels it. The Shogun is very well specced too, getting climate control, heated seats and keyless entry with Elegance adding a fancy Rockford Fosgate 30GB hard drive-based touchscreen music and nav system, panoramic sunroof and more besides. Just as well there’s a standard reversing camera on Elegance models too, because rearward visibility with the boot-mounted spare is awful. It also makes the rear door very heavy. Interior trim is plasticky in places and way behind mainstream premium rivals but it’s likely to be hardwearing enough. In this age of swanky, in-your-face ‘premium’ SUVs there’s something refreshingly honest about the Shogun – it’s not trying to be anything it’s not and does what it does exceptionally well. Seems there’s life in the old toughie yet…

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[Forecourt]

Road tests in association with

Sport’s day One of the best-looking Kias ever, but what’s the new Sportage like on the road?

Kia Sportage Price: £20,777 Engine: 2.0-litre, CRDi Power: 134bhp, 320Nm Max: 112mph 0-60mph: 10.9s Economy: 47mpg recommends Mobil 1 ESP Formula 5W-30 top up packs for this vehicle. See Mobil-1.co.uk for more details

eet the Sportage – a Kia that costs £20,777. We can hear the sucking of air through teeth from here – and we agree: Yes, that does sound a bit rich. But the manufacturer has form here. Take Kia’s recently launched Sortento SUV as an example. The BMW X5-sized model is selling out in the top-of-the-range K3 specification – and that costs nearly £30,000! Suddenly the Sportage doesn’t look so over-priced… It helps that the new Sportage is a stunner too – it’s the first model completely penned by former Audi designer Peter Schreyer, and it shows. What a job he’s done! From every angle the Sportage looks great – the front is purposeful with LED daytime running lights catching your eye, the side profile slopes with sashes and cuts in the right places and those alloy wheels, with black inserts, really are gorgeous. How far Kia’s have come… The First Edition Sportage is available in just the one flavour: 2.0-litre CRDi with 4WD. That diesel unit is good for 134bhp and produces 320Nm of torque. It’s pretty clean too, emitting 156g/km and returning 47mpg on the combined cycle. On the road, our test car did feel a little wheezy as the revs rose, but the low-down grunt was impressive. It hits 60mph in 10.9 seconds with the manual gearbox and will go on to 112mph. That sixspeed box is pretty decent compared to rivals – the Peugeot 3008’s shift is like stirring a bowl of soup in comparison – while the Kia set-up is precise and pleasantly notchy. Steering is well weighted, but can feel a little devoid of feedback at motorway speeds. We’re not so keen on the pedals either – they’re angled high and have a tendency to make your shin muscles ache. Inside the quality of materials has come on leaps and bounds from Kias of old. The seats – although

a little short on thigh support – are comfortable on long-distance journeys, the controls for the stereo and dual zone climate control are easy to operate and the dash layout’s fresh and clean. The First Edition comes with aux-in for your iPod, a USB slot for other MP3 players and there’s built-in Bluetooth for handsfree calling with voice command system. The latter is very easy to set up and the sound quality impressive. There’s even a reversing camera with screen built in to the rear-view mirror that works wonderfully. On the road, it feels like a big car – the driving position is pretty lofty, but despite this there’s surprisingly little room inside. The driving position is cosy and that sloping roof makes it feel like there’s little headroom. It’s also a little on the loud side – road roar from those big 18-inch alloys is quite high and we’re surprised it rides as hard as it does. You expect a 4x4 compact SUV like this to soak up the bumps more, but it’s actually quite jarring. Still the plus side is handling in the bends – the Sportage doesn’t roll like rivals when pushed. Kia dealers will only have 800 of these First Edition models to sell until November when the range expands. Incoming then will be a 1.7-litre diesel and 1.6-litre petrol – both of which will be sub-140g/km cars and will cost under £17,000. Kia predicts the 1.7litre diesel will be the best seller. Despite the price and our minor gripes, we really do like the Sportage – it’ll sell on its looks alone and when the cheaper models arrive, buyers will snap them up. Kia is determined to move the brand further away from its budget roots and closer towards the ‘reasonably-priced premium’ market. And with cars like this new Sportage, few would bet against it. [JB]

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[Eco Cars]

Smart

move

It’s not the first car that springs to mind when you’ve got a 900-mile round trip to tackle, but then we don’t like doing things the normal way. DUNCAN CHAPPELL reports on a road trip with a difference

ealers often use the phrase ‘gets you from A to B’ when talking about an economical, small car. But what if ‘A’ is Portsmouth and ‘B’ is Edinburgh – would you use a typical A-to-B car? Well, being cost and environmentally conscious, we thought we’d give it a go. Could we cover the 450 miles north in the UK’s most economical car? We’d certainly give it a crack... The Car Dealer team gets about all over the UK every month in our quest to bring you an interesting mag. New car launches, interviews and events all need to be attended, but usually for distances over 300 miles we fly – it’s often the most time efficient and can mean the difference between doing a trip in a day or an overnight stay. But when we needed to hop up the country to bonnie Scotland for an event, we left booking the flights a bit late. That meant, when we checked, the cost took us by surprise – £700 for two people! No chance. Surely you can get there and back for a fraction of the cost in a car, we thought. Unfortunately the editor overheard us and concocted a plan. Just how much cash would we save by driving there instead in a Smart diesel – a car capable of 85mpg? It fell to Jade – the newest member of our team – and myself to find out. To be honest, Jade was somewhat reluctant to make her first official Car Dealer road trip in a pocket-sized Smart, but surely it wouldn’t be THAT bad? Perhaps I was blinded by my time selling these little cars when I worked at a Mercedes main dealership. I love Smarts. Yes, they’re small, but surprisingly roomy, easy to drive, and actually quite a laugh to drive. Talk about rose-tinted glasses! When the car arrived at Car Dealer HQ two days before departure we all went out to take a look at what we’d be spending a good

few hours in. ‘It’s a great little thing,’ said the editor, a man who’d be spending no time behind the wheel whatsoever… Around town, I agree it is, without question, brilliant. Nippy, economical and fun to pilot. It is as spacious as I remember, has decent legroom and fantastic vision. Driving it home, I actually thought I could get used to one of these as my own car. The world seems to be a happier place when you’re behind the wheel. Knowing you’re being kinder to trees and polar bears, not taking up too much space and saving yourself money all add to that feeling of smugness. The day of the Big Trip meant an early start. Excited, I turned up at Jade’s house early and eager to get the road trip going. Not impressed by the time of the morning and what lie ahead of her, Jade was a bit upset to say the least. ‘Why aren’t we going in an Aston Martin, or a Bentley?’ Well, that kind of defeats the object

of saving money, I tell her, and this will be more fun! Sort of... An hour into the journey, it is clear that this is not much fun at all. The Smart (bless it) is struggling to keep up with the traffic and overtaking can’t be carried out without wedding-style levels of planning. Having said that, the little 799cc, 54bhp unit is quite capable of sustaining the national speed limit, providing there aren’t too many hills. Oh, I forgot, we’re going to Scotland… ah. After five hours, I’m getting some serious pain in my back. I’m not sure what the seats are made out of, but I’m pretty certain it’s not anything soft. Saying that, I’d still rather be in the Smart than sat on a train opposite some smelly stranger, or on a plane and £700 worse off! Every time we pass a signpost for a town more northern than Portsmouth, we giggle and say: ‘We’ve just driven a Smart all the way to

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THE FRUGAL FIVE SMART cdi – 85.6mpg AS eco cars go, the little Smart diesel is certainly frugal. With an official combined fuel economy level of 85.6mpg it is the leading fuel sipper on sale in the UK today. Our test model was the £9,440 Pulse. The tiny three-cylinder 799cc unit produces 54bhp and 73Nm of torque. Around town it’s perfect: Nippy and fun to drive, we even like that semi-auto gearbox. But as you’ve read, it doesn’t really lend itself to be a motorway mile muncher. Don’t get us wrong, we love the little city car – just don’t think that because it does 85mpg it’s the perfect car to transport you around the country on the cheap! Volkswagen Polo BlueMotion - 80.7mpg VW was one of the first makers to launch a green range of cars, dubbed ‘Bluemotion’. The 1.2-litre TDI Polo is the most economical of the lot and boasts an extra set of seats over the Smart. It emits 91g/km, benefiting from free road tax and is great fun to drive. It costs £14,445.

Seat Ibiza Ecomotive - 76.3mpg Part of the problem with the Polo is the VW badge keeps prices high. Opt for the sister car from Seat and you can bag a bargain. The 1.4-litre TDI Ecomotive is well within the free road tax bracket with emissions of 98g/km and the three-pot engine is still entertaining. Cost? £12,790.

Volvo C30 1.6D DRIVe - 74.3mpg Using aerodynamic tricks like lowdrag wheels and rear air-diffuser, the Swedish hatchback offers style, comfort and impressive fuel returns. Standard equipment is generous and the 99g/km is well within the free road tax bracket. It’s not cheap at £17,365 though. Leeds...’ Although that game did get a bit old quite quickly! After what felt like a day in the car, we arrived at the Scottish border. With a quick pit stop and driver change, we headed into the green hills for the final leg. The little Smart struggled a little on long hill climbs, and at one stage actually gave up. The revs dropped to 3,000rpm and it switched to ‘limp mode’. We pulled over (not the easiest thing on those roads) switched the car off, and waited for it to catch its breath. Any other car that had done that would have been met with some Father Jack style cursing, but the Smart just makes you say a few words of encouragement and give it a little pat: ‘Ah, come on little Smarty, that’s it, see you can do it…’ Told you I was a bit strange… To be honest, you can’t help but feel pretty good about things when you’re driving a Smart, especially when you stop to fill it up. The tank’s

‘To be honest, you can’t help but feel pretty good about things when you’re driving a Smart, especially when you stop to fill it up.’ pretty small – it takes just £40 of diesel to fill up – but we only had to do that twice on the way there. Amazing really. Still smiling, despite the back pain, we reached the hotel in Edinburgh. To say I ached at the end of the journey would be an understatement. I looked at Jade and she was much the same. But still, we managed to cover 450 miles, for just £80! Yes, it may have taken 10 hours, was likely to cost about the same in chiropractor’s bills when I got home, but there’s no doubt it was a bargain way to travel! Only problem was we had to do the return leg the next day… [CD]

Toyota Prius - 72.4mpg Mention green cars and most people immediately think of hybrids. Although, as our comparisons above show, small diesels are more fuel efficient, the Toyota Prius is still right up there in the economy stakes – plus it’s the choice of celebrities too! It costs £19,504.

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STAY AHEAD You want your website to shift gear and put you in front. But to do that, it needs to rank highly with Google and other search engines. And be easy to use. We’ve been building bespoke websites exclusively for the motor industry since 1999. A number of our sites for dealerships have won awards. And being automotive professionals ourselves, we know what your site needs to help you sell more cars. Find out more by calling 0845 2508820 or visiting www.ukwebsites.net Email: support@ukwebsites.net

Part of

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[cult car]

Lotus Esprit With rumours of a replacement Esprit debuting at Paris we look back at the iconic sportscar

t’s the 35th year since Lotus debuted the Esprit at the Paris Motor Show. It marked a real change in the brand’s approach, moving upmarket into the higher echelons of supercardom. How fitting, then, that the firm should be doing the very same thing this year, too – at, yes, the Paris Motor Show… If the unveilings this year are as dramatic as the original Esprit, Lotus will be set for a bright future. For, out of all the cars it has ever made (and there have been many) the Esprit is probably the most time-honoured. The majority of people know the distinctive wedge shape for one reason: James Bond. The Esprit was the car that swam. That it was seen in The Spy Who Loved Me – actually quite a decent Bond film – has helped its immortality, and given it plenty of cred to even the most passive car buffs. Mind you, Lotus helped such prosperity along here: the Esprit was sold from 1976 to 2004, and the wedge profile was not really changed during that time. Giugiaro designed the original, as a British rival to continent-crossing cars such as Porsches, Maseratis and Lamborghinis. Ever the entrepreneur, engineering genius Colin Chapman utilised lots of off-the-shelf parts to keep the costs below those icons, which helped the Esprit gain viability in the marketplace. Sadly, this approach also saddled it with a four-cylinder engine that was to burden it for pretty much the rest of its life. Rivals offered six-pots or V8s; the roughness of the Esprit’s mid-mounted 160bhp 2.0-litre didn’t really cut the mustard. Thankfully, most forgave it this failing, because of one thing: its utterly brilliant handling. Even in original Series 1 guise, this big Lotus drove impeccably, with among the best steering systems of any car in the world – ever. Rave reviews followed, praising Lotus’ approach, and even celebrating the fact it had kept the kerbweight so low. Thanks, in part, to that fourcylinder engine, of course. The glassfibre construction was another reason here. Again, this kept construction costs reasonable but also gave marketable advantages the firm could really exploit.

And how it did; enough to justify an improved S2 model a few years later, with a punchier 2.2-litre S2.2 arriving in 1980 to ease some of the powerplant gripes. An S3 came in due course, but what really gave the Esprit a timely boost (if you’ll forgive the pun) was 1980’s Esprit Turbo. 210bhp doesn’t sound much by today’s standards but it turned this into a 150mph car that could hit 60mph in 5.6 seconds. At last, supercar performance had come to Lotus’ supercar. By the late 1980s, it was looking dated. This could have signalled the end of the Esprit – but instead, it was given its first (and only) major facelift. McLaren F1 designer Peter Stevens did the honours, transforming the Esprit into something modern again. It received more power, but the biggie came in 1989: Lotus bolted on an intercooler, pushing the Turbo up to 264bhp, with 280bhp available for short (ahem) bursts. 0-60mph fell to 4.7 seconds and a top speed of more than 160mph meant Lotus had to fit a rear spoiler and flash side skirts. Result? The Lotus Esprit Turbo SE, a model so iconic, it even had a computer game named after it. And so it continued, through ever-more focused iterations based on Lotus’ success in sportscar racing with its long-running stalwart. So able were the Sport 300 and GT3 models, it was therefore a bit of a surprise when a long-awaited V8 engine arrived in 1996. Yes, 20 years on, the Esprit got a bespoke 3.5-litre V8! With 350bhp, 175mph and 0-60mph in 4.4 seconds, it should have been magnificent. Alas, being based on a racing design meant it didn’t really ‘sound’ quite as it should, lacking the aurals of a fizzy Ferrari. The Esprit carried on for another eight years with it in the back, but the expected image lift we’d seen in the past didn’t really arrive. It was killed off in 2004; since then, rumours have swirled around a replacement. Now, though, they may at last be about to come true, if the excitement around the Paris announcement is anything to go by. In what form, we do not know, but it certainly won’t be cheap – rumours say this could be the £100k-plus Lotus… As the Esprit proved, though, it can be done, if the car is right. Will it be? Lotus dealers the world over will certainly be hoping so. [RA]

Lotus Esprit V8 Price: £49,995 Engine: 3.5-litre, V8 Power: 349bhp, 400Nm 0-60mph: 4.8s Top speed: 175mph

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Car Dealer Magazine’s App for the iPhone, iPad and iPod touch brings you the latest car industry news, features and road tests in the palm of your hand Breaking industry news every day New car launches, news and pictures Road Tests, Blogs and our Car Dealer TV channel Updated every working weekday, the Car Dealer App is a must for forward-thinking motor trade professionals keeping you up to date with the news that matters

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[sales Legend]

Vauxhall Nova

It wasn’t the prettiest supermini but that didn’t stop it selling

he year was 1983 and it was set to be an iconic one for superminis. The iconic Peugeot 205 was launched that year, as was the iconic Fiat Punto. There was another launch that year as well, though whether you’d call it an icon is a bit more debatable. One thing’s for sure, though: the Vauxhall Nova is certainly a sales legend. It originally came in a sensible three-door hatchback bodystyle, taking Vauxhall dealers straight into the modern era of the supermini arena. After the Chevette, it was a breath of fresh air. Mind you, it wasn’t all fresh, for there was also a maddeningly dull twodoor saloon. Can you imagine such a contraption today? Surprising thing was, though, many people back in the day did, meaning the two-door was a fairly decent seller. So much so, a four-door saloon came in 1984, along with a far more useful five-door hatch. It was the model with the most doors that really got things going for the Nova though. Now, with the flash Cavalier and Astra ranges supplanted by the modern and inclusive Nova, they had a full and competitive line-up that really did enable them to take on Ford. Just a cursory glance at the contemporary SMMT sales charts confirms this: Vauxhall was now a firm top 10 brand. If you’re a driver of the Car Dealer Magazine staff era, there’s another reason to love the Nova, though. Yes, the Nova SR – first as a 1.3, and later as a 1.4. This was one of THE ‘first cars’ to have, with street cred in droves and performance good enough to see off (what felt like) anything on the road. Those Vauxhall engines really were fast and totally unburstable, as many of our peers proved; chuck in tartan seats, well-stocked dial pack, sporty steering wheel and ‘that’ black rear boot spoiler and designation sticker, for the sort of appeal that kept car dealers going back to auctions

time and again to source more. Many got pranged, of course (if rear wheelarch rot didn’t see to them first), but even this wasn’t the issue it could be. Despite it being the first car to be seen in, the Nova SR was surprisingly affordable to insure. It took insurance companies a surprisingly long time to cotton on… The GTE was an obvious trade-up, but for the heady insurance premiums the 100bhp 1.6-litre fuel-injection car carried. It was a further example of how Vauxhall was pressing on with technology; the Nova may have looked dull, but there was no questioning some of the mechanical engineering that went into it. This is why the model even today carries a reputation in rallying circles; many a big-name star began their career in a Nova – it was the ultimate learner machine on the special stage as well as the highway. It wasn’t all perfect for Vauxhall. It kept the Nova on sale too long. The rival Ford Fiesta was well established by the time it was replaced in 1989, which gradually hit sales – but despite this lesson, Vauxhall wouldn’t have an all-new supermini until 1993. That was when the Corsa arrived; a lame facelift in 1991 may have introduced a posh new dash, but it wasn’t enough to fully lift the Nova. This was a rare chink in the record of a car that crept under the headlines at launch, but quickly turned into a UK top-10 best-seller mainstay. By the time it was replaced by the Corsa, Vauxhall had sold nearly half a million in the UK alone, and you’ll still see the odd one or two on the road today. They’re still not an icon, but perhaps deserve to be; today’s Corsa wouldn’t be the high-selling success it is without the Nova. We’ll always carry a candle for it here at Car Dealer, too: Bright blue Nova SR 1.3 with Kenwood stereo and sub in the boot? Bring it on… [RA]

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911for2011

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Pictures: Matt Richardson

Own

goal? Our bid to turn £0 into a Porsche 911 has taken a leftfield turn with this, our latest step on the ladder. JAMES BAGGOTT explains what was going through his mind when he shelled out on this Hyundai i10 >

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911for2011

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n answer to the two questions that are currently swilling around your head: Yes, we really have bought it. And no, we’re not mad. Well, ok, maybe just a little bit mental, but we do have a plan. Sort of. When we launched our 911 for 2011 challenge – where we attempt to turn £0 into a Porsche by trading up cars in aid of automotive industry charity BEN – we knew it would be eventful. What we hadn’t bet on was buying a car covered in grass with a giant football and goalposts bolted to the bodywork. Well, we did say we wanted to buy something a bit different... When we signed off last month, we were still in possession of an 02-plate Ford Fiesta which we’d secured from dealer Lifestyle Europe for £985.25. The task of selling it fell to former car salesman and Car Dealer commercial manager Duncan who listed the car on Auto Trader for £2,595. Without any bites in three weeks we dropped the asking price to a more realistic £2,250, in the hope we’d get £2,100 for it. It wasn’t long before the phone started ringing. One lady was particularly eager and Dunc decided to take the car over to see her, but there were a few issues to sort first. Remember us mentioning we’d lost the Fiesta’s wing mirror to vandals and that we weren’t too bothered as it would ‘soon by fixed’? Well, turns out we spoke a bit too soon. The Fiesta was just on the cusp of a model change so finding a replacement bit of glass wasn’t easy. In fact, finding another Fiesta for £985.25 would have been easier. After we’d ordered two replacements from eBay, both of which turned out to be the wrong size, we headed to the local Ford dealership and ordered an OE replacement. For some reason this didn’t fit either and the parts manager said we’d need a whole new unit costing £100 plus. We gave up and tried the local breakers yard instead where a stroke of luck helped us secure a complete replacement mirror unit, in the right colour, for just £25. Problem was we couldn’t pick it up until after the buyer wanted to see the car. Dunc was confident the missing mirror ‘didn’t matter’ – he was more worried about the absent documents. Somehow he’d managed to lose the V5 and MOT somewhere either in the office or at home, so systematically set about tearing his desk, filing cabinets and even the office bins apart in a desperate search for them. After an hour, nothing had turned up and panic began to set in. This was not good. Not good at all. With no other options, and time running out, Dunc drove off to meet our potential buyer where his sales technique would need a serious workout. I mean would you buy a car with one wing mirror, no V5 and a missing MOT? Didn’t think so. An hour later he called. ‘She bought it,’ he said. Surely he was kidding? He wasn’t. ‘She did negotiate on the price though,’ he added. Oh no, how much did we have to knock off? ‘£100,’ came the reply. ‘She’s paying cash tomorrow – £2,150.’ Seriously, I don’t know how he did it. But he did. Twenty minutes later the phone rang again – this time with even better news. ‘Found the documents! They were in a plastic bag at home,’ said a rather relieved Dunc. My heart rate was now beginning to return to normal. The next day we drove to the buyer’s house after fitting the new wing mirror and letting the Polish polishers give the Fiesta a once over. An hour later we were homeward bound with a wad of £50s and huge smiles on our faces. I still can’t believe he managed to pull it off.

KICK OFF And so to the disaster/potential stroke of genius you see here. A few days after the Fiesta sale we got chatting to our 911 for 2011 mentor, James Litton of the Internet Car Lot, about what we should do next and he suggested a trip to the auctions. ‘You’re bound to get a good story there,’ he said. ‘Spend a day at Blackbushe, get your eye in, and see what you can pick up – whatever happens it will make a good read.’ So that was the plan… Well it was up until a direct message popped up via Twitter in my inbox. ‘Spent your cash yet?’ asked Tom Barnard, PR manager of Hyundai UK. ‘Not yet,’ I replied. ‘Why have you got an i10 you want to flog us?’ ‘Well, now you come to mention it,’ said Tom. ‘I have. It’s just had a few modifications…’ Then a picture of the car you see here appeared on my screen. When I’d stopped laughing I called Tom and asked if he was serious. Deadly, came the reply. It’s fair to say my colleagues didn’t have quite the same level of enthusiasm as I did for the Hyundai i10 and in some respects you can see why. They eventually came round to the idea though. Well, when I say came round to the idea, obviously what I really mean is I pulled rank and bought it anyway, but when you hear the story behind the car you’ll realise why. This i10 is just one of two in the world. Produced by car artist Andy Saunders – whose work has previously been bought by DJ Chris Evans among others – it is more of a masterpiece than simply a car. Our particular i10 has got a famous background too. It was used by Jeremy Clarkson in his Duel video last Christmas and was driven by The Stig and Tiff Needell as part of a special feature. We’re hoping that fact alone will add pounds to its worth. When the cars were returned to Hyundai they were in need of some TLC, so instead of simply repairing them and flogging them on, the manufacturer decided to use them to promote the World Cup. Andy Saunders took the pair away, attached the giant footballs to the roof, added the goal posts and covered them in astro turf. >

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911for2011

‘And before you think we’ve scored the biggest own goal of the 911 for 2011 campaign, we’ve managed to get the car underwritten for the price we paid for it too.’

The interiors on each car were a little different – ours has plastic grass-effect seats, football boot air fresheners, footballs for rear headrests and a football-shaped cup holder. The other has a leather Hyundai interior and is being kept by the manufacturer for promotion. The i10 underneath is an 09-plate 1.2-litre Classic with just 1,000 miles on the clock and it drives perfectly. Hyundai assures us the modifications are road legal and Andy, who is also an MOT tester, says the only thing that would raise eyebrows is the net, which you simply hook up out of the way when you drive it. It really is an absolute traffic stopper. It’s been on my drive two weeks at the time of writing this and every day someone stops to take a picture of it. Plus, there’s nothing like a nagging wife as an incentive to sell something quickly. Needless to say Her Indoors does NOT like the new garden ornament. But that attention-grabbing ability is the whole point – as an advertisement for a dealership or business connected to football this i10 is perfect. We’ve listed the car on eBay – type bit.ly/worldcupcar into your browser

to see the listing – because we think that’s the perfect place for it to get noticed. With Tom’s help we’re also going to market it to the Hyundai dealer network, we’ve got press coverage planned in the local rag, on car blogs and websites and hopefully from some other car and football-related magazines too. And before you think we’ve scored the biggest owngoal of the 911 for 2011 campaign, we’ve managed to get the car underwritten for the price we paid for it too. Which was? £2,000. Not bad for an 09-plate i10, eh? Yes, we know there are few people that’ll buy it to drive it, but if we can’t double our money on this one I’ll be very surprised. If you want to know how it got on, type that bit.ly link into your web browser which will take you straight to the eBay listing which finished on August 10. Hopefully we’ll have managed to score (sorry) by turfing it out (sorry again) without getting a red card from the missus (ok, that last one was bad)…

You can watch a video about the World Cup Hyundai by typing bit.ly/watchhyundai into a web browser.

CASH Cash List Incoming Audi A3 VW Golf Ford Fiesta

£790.03 £250 £2,150

Outgoing eBay fee eBay fee Auto Trader Hyundai i10

-£36 paid by us -£36 paid by us -£40 -£2,000

In the pot

£164.75+

Thanks to... Hyundai UK and Gosport Borough Football Club

THe sToRy so FaR... Bought for... £0 Sold for... £250

Bought for... £0 Sold for... £790.03

Bought for... £2,000 Sold for... £??

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CarDealer.

Car Dealer Ewards 2010

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

autotorq.com

Entry: WirralSmallCars.co.uk Entries to this year’s Car Dealer Ewards are already ﬂooding in – here James Baggott and a selection of our judges look at one entry

he wonder of the worldwide web means even small dealerships can fight with the big boys. You only have to look at one of the very first entries in the Car Dealer Ewards 2010 for proof of that. Paul and Roz Kepke-Smith run Wirral Small Cars and have managed to produce a brilliantly unique and attractive website. ‘We are only a small concern and wanted our website to be an honest reflection of the company we are and the personal service that we offer,’ said the couple in their Ewards entry. ‘We did not want an Auto Trader-style website that looks just like thousands of others.’ Instead the couple approached Click Creative with a bespoke request – and the company produced the site online today. Wirral Small Cars also has a Twitter and You Tube presence and invests a lot of time and effort in producing videos of cars for the website. It certainly impressed our judges. Stewart Niblock from Ewards headline sponsors Autotorq.com said it was a ‘great, clean and uncluttered website’. ‘It focuses simply on the cars (rather than too many confusing offers and options) and shows they have worked hard to bring their brand alive online,’ explained Niblock. Car Care Plan’s digital marketing manager

Matthew Strudwick spends his working week analysing web offerings and loved Wirral Small Cars’ ‘attractive site’ too. He added: ‘It is clearly laid out, simple and easy to navigate. I like the good selection of exterior images for each vehicle listing, and it’s helpful that contact details are always to hand. With a Twitter feed, You Tube video walk arounds of each vehicle and an embedded Google Map it’s clear that Wirral Small Cars are really embracing online to drive business.’ Impressive stuff. Serial Eward winners and Car

Dealer Power favourites GForces know a thing or two about building a good site, so praise from the firm’s Tim Smith is high praise indeed. ‘The most impressive element for me is the amount of video they have for stock which shows they care and attention they have for their business and subsequently their target market. Most dealers don’t have the time, resource or more often inclination to do this and this reflects they will look after you.’ BCA’s Keith Rountree was most impressed with what the small dealership had managed to produce

The judging panel. Stewart Niblock

Keith Rowntree

Tim Smith

Martin Hill

Matthew Strudwick

James Tew

Autotorq

BCA

british-car-auctions.co.uk Gforces.co.uk

GForces

Codeweavers codeweavers.net

CarCarePlan

carcareplan.co.uk

Webzation webzation.com

FOR me, the challenge will be on finding websites that focus on giving the consumer what they want, when they want it. Too many websites now seem to be intent on crowding as many buttons, banners and widgets as possible on to the home page, which often results in higher drop-out rates. You wouldn’t push all your products, marketing material and advisors to the front door of your showroom, so why do it on the web?

I’LL be looking for sites that really engage with visitors in this year’s entries. Engaging also means two-way communication: give consumers plenty of relevant content and information but allow them to provide their details or optin. Allowing visitors to comment is vital in today’s age where online recommendation is as important to brand reputation and perception as advertising and marketing.

INNOVATION, execution, integration and results are what I will be looking for. Innovation displays a forwardthinking attitude and a willingness to embrace new technology. Execution is about how well everything is put together; how well it works and how simple it is to use for the visitor. Integration is demonstrating how the business has adapted to meet the expectations of today’s ‘internetempowered’ customer.

I’LL be looking for solid evidence of a well thought out customer journey – one where the constituent parts of the website work together to provide a true ‘pre-Dealer contact’ interface. The best sites will be intuitive to use and the winner will effectively demonstrate a differentiated approach to web customers. If it caters for the web customer by not trying to force them down a sales process or route they don’t want to go down.

I’M looking for websites that focus on making it easy for customers to navigate, that are simply and effectively laid out and that help drive their owner’s bottom line. The best sites load quickly without overloading users with unprompted data and they generate business by encouraging repeat business. They’re as much a window on the dealership as the forecourt frontage so we’re looking for fresh, uncluttered and tidy sites with intuitive usage.

I SIMPLY want to buy a car through your website! How much of the experience can be undertaken online? The sites getting my vote will be those that enable either all or part of the buying process to be fulfilled online. I would expect to see everything from product presentations to the ability to handle part exchanges. A site should also demonstrate the affordability of the vehicle and a way to ‘shop and collect’.

autotorq.com

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in association with autotorq.com

Stewart Niblock

How to enter... Submitting your website is a piece of cake. All we need is an email to ewards@ cardealermag.co.uk with the following details: 1 Your name and position 2 Company name 3 Website address 4 Name of the agency who designed the site 5 100 words (or more) saying what makes your site an Eward winner. If you’ve entered before that doesn’t mean you can’t enter, but you will need to send us details of your website again. We will also consider nominations made by other parties and our judges will get to nominate some of their favourites too.

on a small budget compared to some franchised dealers. He said: ‘It’s encouraging to see a small family-run business making their own mark online. Wirral Small Cars’ website reflects the proposition of the business: small, uncomplicated, personal and good value.’ And finally Martin Hill, from Car Dealer Power web design runner up firm Codeweavers and regular columnist, added his praise to the site. ‘They obviously understand the importance of social media and social marketing – both Twitter and You Tube feature prominently on their site, which tend not to be standard offerings on small used car websites,’ said Hill. If you think your site could be a potential winner make sure you get your entry in soon. This year we’re looking for winners in seven categories. We’ll be accepting entries for the following categories in 2010: 1. Single Franchised Dealer – this is open to all franchised dealers that represent just one manufacturer 2. Multi Franchised Dealer – open to all franchised dealer groups that hold franchises for more than one manufacturer 3. Car Supermarket 4. Independent Dealer 5. Car Manufacturer (automatic entry) The Web Innovation category is nominated and voted for by the judges and then the panel will pick a winner during our judging day. This Eward can be handed to any business connected with the motor trade which the panel feels has done something truly innovative in the past year. The Special Achievement Eward will also be nominated by individual judges and decided upon by our panel at the judging day to be held at headline sponsor Autotorq’s Fulham HQ. For details of how to enter, see the panel above.

Eric Stone

Terry Hogan

Rob Queen

Anthony Doherty

autotorq.com chief executive officer

CAP

CAP.co.uk

t’s that old chestnut we all keep reciting – ‘90 per cent of car buyers start their research online’ – but how many of us really realise the implications of this for our business and actually do something about it? There was a time when having a website was an option, and even more recently you could get away with having one and maybe once a month finding an hour to update it or open the leads. However, consumers have decided those days are gone and only those dealerships that recognise the web is an integral part of their overall business strategy will attract, convert and retain these online customers. Changes in online buying behaviour and the rise of search engines as the primary means of finding car dealerships, means that your website is not just the first point of contact most prospects have with your company, but all too often it’s the last! Typically in the UK, for every 1,000 visitors to your website, up to 950 leave without making an enquiry or giving you their contact details – have you ever looked closely at your website and wondered why? Like it or not, your website is becoming the most important shop window for your business – it puts your brand, your offering and your personality in front of thousands of potential customers each year. If it doesn’t reflect every bit of care, attention to detail and passion you have put into building your ‘real world’ image, then you are turning away thousands of potential customers. Consider how much time, effort and money you spend training all your customer facing staff on what your brand stands for, how they should greet, engage and build relationships with your customers and how best to convince them to buy from you? Now think about how little time, effort and money you put into doing the same thing for your website… Does the person who looks after the branding, content, messaging and layout of your website really understand your business objectives and do they get the same attention, support and training? Remember, your competitors are now only a click away…

Daniel Burgess

Alan Stewart

WMS Group

wmsgroupuk.com

Motoring motoring.co.uk

Starkwood Media Gp

starkwoodmediagroup.com

HPI hpi.co.uk

Spidersnet

I WILL be looking for the site that compels me to stay online and provides a simple and straightforward path to my goal. How easy and attractive is it for me to buy other products like warranty and GAP protection with the relevant information? A website can reach millions of people but sometimes we forget that it’s often ‘one at a time’ so make it a good experience through my eyes. Above all, it has to deliver.

THIS year we’ll be focusing less on the fine detail and more on consistent branding, ease of use for consumers and a clear message as to why a user should buy from this vendor. We’re also looking for Kerb Appeal. And we’re hoping for more innovation in the new car offering. Certain manufacturer websites have made leaps and bounds this year – but can retailers follow through on this brand experience on their own sites?

THIS year I am looking for something different, but I’m not sure what! The world of the web is changing so quickly with new innovative features being introduced all the time that I guess it’s a motor retailer’s ability to adapt to this speed of change that I am looking for. However, any innovation needs to fall within the parameters of good, solid web design that is easily navigable and will be prominent within the major search engines. It’s a tall order!

IT IS all too easy to get carried away with detail and clever applications in an attempt to draw buyers in, particularly with social media complicating matters. We will be looking for simplicity both in terms of navigation and well chosen information. That said, we are big advocates of adding value to websites. This could be as simple as partnering with other brands. Too much or too little? Striking a balance is not as easy as we all think.

ATTRACTIVE and well laid out design, but most importantly a site where the dealer has fully embraced the technology that is available to them. I will be looking for latest deals, all vehicles with images, and good quality ones. Interesting content about the dealership with images of the site, with a customer feedback area that is again ‘up to date’. I would also like to see video integrated into the site, either a profile of the business as well as individual vehicles.

FOR me ‘creativity’ is the key ingredient in site design. When applied well it ensures that the design and implementation successfully deliver on the purpose of the site. The user experience should be intuitive, providing clear signposts to the journeys through the site and interactive to keep the journey interesting and entertaining but without being intrusive.

Shaun Armstrong Dealer Plus

dealerplus.co.uk I WANT to see sites that have embraced technology to give the users the best possible experience. This means I’m looking for sites which offer innovative online tools with an attractive and engaging user experience. Sites should be intuitive to use and the information has to be presented in a way that the user will enjoy the experience. Getting the right mixture of information, technology and usability will provide the best results for the customer.

autopromotor.co.uk

Also judging IN ADDITION to all the judges profiled here, entries will also be rated and reviewed by Car Dealer editor James Baggott. James said: ‘I’ll be looking at the websites with both a trade and consumer hat on. I want sites to be easy to use but most importantly I want to find car prices. So often on franchised sites it’s so hard to find a car’s price. That should be simple.’

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interview

Kevin Gaskell

‘People forget the power of the internet. Motoring offers dealers something different’ From top dog at Porsche UK to the top of the world’s highest mountain. John Slavin finds out what makes Motoring.co.uk’s chairman tick

ounded in 2007, Motoring.co.uk is one of the fastest-growing UK motoring websites. But with the rapid rate of the site’s expansion, founders Chris Green and Terry Hogan needed a helping hand. That’s where Kevin Gaskell came in. He turned around the fortunes of Porsche GB in the early 90s, and has been UK head of both BMW and Lamborghini. He’s also spent seven years at the top of the EurotaxGlass’s group, and in his time there increased operating performance by 250 per cent. Now he’s on board with the Motoring. co.uk team. He took on the position of chairman in April last year and has spoken to Car Dealer about his role there. ‘When I stepped down from the position of CEO at EurotaxGlass’s I was looking for things to invest my time and money in. That’s when Chris and Terry knocked on my door,’ he explained. ‘I first met them at a EurotaxGlass’s conference in Birmingham. I told them how I’d got fed up with the retail world not fully understanding or appreciating the power of the internet, and that I wanted to do something about that. ‘They showed me their business plan and asked me what I thought of it. I laughed, because I had a business plan just like it that had been sat on my computer for years. I hadn’t gotten round to it yet, and they were doing it already!’ But what made Motoring.co.uk stand out? After all, Gaskell has worked with some of the

biggest automotive companies in the world. ‘I get approached with business plans a lot, but what I liked about Motoring.co.uk was the fact Chris and Terry had thought it through. It was a working platform, and it wasn’t too expensive. I thought we could make a go of it.’ In the newly formed position of chairman, Gaskell is responsible for introducing Motoring. co.uk to franchised dealers and major manufacturers, as well as giving general business advice. ‘I liked Chris and Terry’s enthusiasm, but they were trying to cover about a hundred bases. So, since I joined them, we’ve narrowed down the focus of Motoring.co.uk and set real, achievable targets. Chris and Terry come from a retail background, so my strategic and manufacturing knowledge and their retail knowledge makes for a powerful combination.’ Motoring.co.uk is proud to guarantee there are no brokers on the site. Gaskell told us that this inspires confidence in buyers. ‘Motoring.co.uk set out to provide sales leads to dealers and we’re now achieving that. What we do is capture buyer interest and channel it through to the most appropriate offer for the buyer’s needs. This enables manufacturers to take their tactical marketing campaign and deliver it right to the buyer. ‘People forget the power of the internet,’ he says. ‘It can show a buyer the offer they require, as they specify it, and direct them straight to >

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interview

Motoring.co.uk’s Kevin Gaskell has climbed many mountains, and not just in a business sense who can provide it. Looking at the numbers of sales we’re driving to dealers, for very little investment they can expect their sales to double.’ Gaskell has high hopes for Motoring.co.uk, and believes that in five years the site will be the number one online destination in the UK motoring market. Getting Gaskell onboard was a real coup for Motoring.co.uk too, especially when you consider his illustrious past. After leaving a job at a chemical company, Gaskell spotted a role at Porsche in The Times, he explains. ‘They wanted someone who was financially aware, but with a sensitivity to manufacturing. I was also attracted by those three words: Company car provided! ‘They offered me a job, and I joined them in 1987 as a regional sales consultant. For my company car I picked an ocean blue metallic 924, with grey pinstripe cloth interior. OK, so it wasn’t a 911 Turbo, but I was 27, so I thought it was amazing.’ The early 90s saw the last big recession and Porsche suffered huge losses. ‘Sales had dropped from their peak of 5,700 per year down to only 650.’ Problem was, nobody wanted to cut production – then things got worse. The main board in Germany relieved the UK manager of his responsibilities and eventually Gaskell was called into a meeting with a colleague. ‘When we went into the room, the board laid into us. I told them what had happened was predictable and could be fixed, and they gave me a flip chart to write on,’ he says. Over the next four hours Gaskell stood and wrote out a full business plan. ‘They asked us to

‘I was attracted to Porsche by those three words: Company car provided.’ leave, and then 10 minutes later they called me back in and told me I was the new MD!’ Gaskell set about restructuring Porsche GB, removing administration and expense that were not needed. ‘We set ourselves the target of placing fifth or better in dealer satisfaction surveys. At the time, we were 32nd.’ By the time he left, Porsche were first in the surveys, and were making 15 per cent on sales. ‘I left shortly after we launched the Boxster. I’d been with Porsche for 10 years, so I wanted a change.’ Shortly after leaving Porsche, BMW came to Gaskell and offered him the position of MD. BMW were already a strong brand, but they wanted to grow further. He spent six months restructuring the company. ‘The goal was to increase sales from 48,000 to 57,000 in five years, which is quite a modest target, and we made a start by restructuring the PR image of the brand. We wanted to move away from the negative, yuppie image and concentrate on the technical side of the cars,’ says Gaskell. Next on the agenda was an overhaul of

the fleet market. ‘We tried to make sure that fleet buyers varied their choices with different specifications, colours, and options to keep residual values high. That way, they’d have more to spend down the line when the time came to buy again.’ Gaskell’s approach worked. Instead of growing to 57,000 sales, BMW grew to 70,000 in just four years, and profitability increased by 250 per cent. Once he reached 40, he decided he wanted to do something new. ‘My wife told me I was turning into a boring old man, so I decided to do something more interesting, and I ended up climbing Mount Everest in November 1999. Sitting in a tent, halfway up the highest mountain in the world, I decided I didn’t want more of the same. When I got back, I started quietly looking for a new job.’ In 2001, Gaskell joined EurotaxGlass’s. ‘I stayed there for seven years. Now I am chairman for Motoring.co.uk and I am chairman for a company called Achilles. I also have my own training and development company. So I’m 50 years old and I still don’t have a proper job!’ With Gaskell’s wealth of experience to help them, the future looks bright for Motoring. co.uk. ‘We have a clear vision, we’ve written a plan, and we have the building blocks to make it happen. In the past six months things have picked up dramatically, despite the recession, and I am convinced they will improve even further when manufacturers realise the power of Motoring.co.uk. If I can add to the strength of the team with my past experience, then that’s great.’ [CD]

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AT095 Car Dealer

1/7/10

11:12

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WHAT’S

HOT

Phew...

eat rules in the summer – the hotter the better. Given the obvious distractions of summertime, business can risk taking something of a back seat as you savour the scorchio. What’s needed are attention grabbers that are hotter even than the sun-burnt nose of the dealer principal who forgot his suncream on the summer Ride & Drive… car Dealer Magazine has hit the hotspot here. We’ve trawled the summer streets to find seven companies for whom things really are hot at the moment. Their businesses are booming, in each case because of one key proposition that is doing the full works for them. We’ve spoken to each to find out just what they’re doing to keep things boiling, and to learn more of just what the attraction is to car dealers. Why are so many breaking into a sweat to sign up? Read on to find out. of course, there’s one thing all have in common: an unbeatable proposition that is enough to have their competitors steaming. To beat the rest, it seems you must come up with something good enough to have the others breaking into a cold sweat – be it new ways of buying secondhand stock, generating strong aftersales profits with add-on extras, or simply exploring a whole new way of doing business. To overcome the obvious distractions of summertime, we’ve boiled down exactly what each is offering. even if you’re hot under the collar, you won’t have to sweat too much here to find a potential goldmine. so, here are seven fascinating business propositions that will lead to sweltering sales – and maybe, just maybe, raise enough in the bonus fund to buy a winter break in the sun and carry on the heatwave…

Richard Aucock, Deputy Editor

inside the guide p56 WMS

p62 TraderNet

p64 Supagard

p60 MFL

p63 JGA

p65 EDT

Finding the right warranty package How to get great stock at a low price

Trader-only auctions that get results How to track down the right sales team

Boost revenues with car care kit Train your way to dealership success

p61 Auto Protect

The benefits of service packages

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WHAT’S

HOT

Bluesky

Undercover agent WMS

wmsgroupuk.com

ome brand experts say you build your most satisfied and loyal customers not when everything goes right, but when something goes wrong. Well, that’s just what happens when a customer comes back with a warranty claim. So instead of a groan, should you go ‘great! An opportunity to win a friend for life’? Well, yes you should – but only if you have the right warranty claim partner on board… Enter WMS Group. ‘We talk your language,’ says business development director Eric Stone. ‘We have had years of experience in the motor trade,

as have our trained engineers who handle the claims. We can give your business a competitive advantage.’ Okay then, we asked Stone, tell us more: how do you help car dealers turn grumbling customers into brand ambassadors? Stone starts out by laying the WMS Group USP out for all to see: ‘We guarantee ratified claim reimbursement within 24 hours.’ This promise is fundamental to everything the group does, across all its products, which immediately means increased profit and cashflow for the dealer network. Getting cash in fast is fundamental to a healthy business. With WMS

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‘We do have state of the art electronic tutorial, training and registration systems… but in addition, when you need a face-to-face we are there to deal with any queries’

Group, this is simply not in question, plain and simple. And with that basic promise on the table, we sat back to hear more of why he calls WMS Group ‘the dealers’ favourite warranty company’. The firm has been trading since 2003, and incorporates Warranty Management Services, Vehicle Guarantee Services plus Freeplan & Used Vehicle Warranty. These are the three key acronyms dealers see in communications – WMS, VGS and UVW, which combine to form WMS Group. If that sounds a comprehensive portfolio, you’d be right. ‘We are a specialist warranty and protection product supplier, with innovative designs, created for the dealership and offering value for money customer protection. We provide a range of products including FSA and non-FSA solutions; whatever your shape of business, we deliver profit making opportunities.’ Stone explains that the WMS Group product portfolio is suited to both independent and franchised vehicles suppliers, be they selling cars, light commercials, motorcycles or HGVs. To help dealers through this vast selection of products, WMS Group employs more than 30 regional managers across the UK, each with both a

detailed knowledge of the firm’s product offers, and how they might be applicable to the particular locality they operate in. You might not know what schemes will work for you, but Stone’s men will, he says. Give us a flavour of what you can do, then, we challenge him. WMS RANGE Well, certainly all the fundamental areas are covered; that’s warranty, RTI, GAP, Rescue and Recovery, Wheel and Tyre insurance, dealer fund and administration programmes. ‘These products are backed up with full point of sale and marketing support, for participating dealerships, plus web and telephone re-solicitation opportunities to ensure that your customers remain your customers,’ explains Stone. He delves deeper into one of the WMS Group key offers – used car warranty. Dealers can offer this in a range of levels, from two star to fullon five star. Period of cover for each level stretch from one to 36 months, while customers can choose from claim liabilities of £200 right up to the current market value. It starts with two star cover. This is available on all cars costing more than £1,000, and covers certain component breakdowns in areas such as engine, drive system, electrical, brakes, steering and so on. It’s a good, basic warranty, the likes of which you’re no doubt familiar with. But even this benefits from the WMS Group extras of fulsome support and nearimmediate payouts. At the other end, there’s the five star cover. This is suitable for cars and LCVs that have covered no more than 60,000 miles, and are up to five years old. It’s more restrictive and more expensive – but its remit is a damn sight broader, too. ‘During the period of insurance, all non-modified mechanical and electrical items will be insured against breakdown.’ Naturally, there are exclusions, but these are clearly listed – customers can >

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WHAT’S

HOT

basically have the confidence nearly everything is covered. ‘This product is a superb way of building peace of mind into the sales process – particularly when you add in the fact the insured will be permitted to make unlimited claims throughout the duration, including parts, labour and VAT.’ On the dealer side, setting such products up is done via a simple electronic policy registration and invoicing process. ‘Our showroom system is designed to ensure that your sales staff never miss a sales opportunity, and will also provide you with a real-time check on sales made throughout the month so that you know who’s delivering consistently. ‘I like to tell clients that, with us, they will attract more customers, retain more customers and create more profit with our special customer incentives.’ WMS Marvel And there’s more in the kitbag, continues Stone. 30 days’ free warranty cover, insured heavy commercial vehicle warranty (including HGVs and coaches), alloy wheel and tyre warranty, MOT insurance, combined Finance GAP/Return to Invoice insurance…’ Stone pauses. But only for breath… ‘We’re particularly proud of the RTI and GAP product; with this, you can offer customers a promise that the shortfall between the car’s original invoice price and the market value in the event of a total loss write-off being suffered.

‘What’s more, you can say that if the amount required to settle the finance agreement is actually higher than the original invoice price, finance GAP will pay the higher figure.’ You have to admit, it’s a pretty compelling form of additional peace of mind, particularly on higher-value purchases. ‘RTI applies for up to 48 months and GAP applies for up to 60 months,’ he adds. ‘You can even include an optional road-risk insurance excess contribution of up to £250.’ Frankly, we were amazed. A chat with one of the regional managers would almost certainly be vital, we mused – no fear, chuckled Stone. ‘I personally speak to all dealers who enquire about our products and services.’ In the process ensuring they are put in contact with just the right person to maximise potential opportunities specific to them. Stone is proactive here because many of the people he speaks to, he says, ‘are either unhappy with their current provider on service levels, or are looking for a better profit opportunity from an experienced company. ‘We don’t believe in a faceless approach and have a team of managers on hand to provide the level of support that’s right for the dealership. We have innovative products, and because many of our sales team have dealership experience, we are well placed to understand the dealership dynamic and can deliver training and support free of charge. ‘It’s far better than speaking to a computer.’ WMS Group doesn’t eschew technology, he adds: ‘We do have state of the art electronic tutorial, training and registration systems… but in addition, when you need a face-to-face we are there to deal with any queries.

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‘We’re particularly proud of the RTI and GAP product; with this, you can offer customers a promise that the shortfall between the car’s original invoice price and the market value in the event of a total loss write-off being suffered. ’ Eric Stone, WMS

‘Simple products, straightforward processes combined with customer retention and real profit opportunities – that’s why we are known as the nations’ favourite warranty company.’ And one that is experiencing much growth across all areas, says Stone – ‘especially in the motor dealer sector’. We’re probably preaching to the converted here, mind. WMS Group already has in excess of 2,500 supporting car dealers. These include car dealers such as Chris Hulme of LPG Autos. He said: ‘We find WMS to be the best in terms of service, prompt payment and assistance in dealing with our customers’ claims. We feel the best interests of both parties are considered in the process of dealing with claims. Long may it continue!’ Time-poor Grant McCubbin of Dumfries Proton dealer Klic Cars adds: ‘The WMS showroom online website is simple and straightforward, saving us a lot of valuable time – this is important to us in such a busy dealership.’ Meanwhile, Cottage Cars Aberdeen’s Ian Matthews feels the attraction is this: ‘I can provide my customers with a comprehensive warranty and breakdown cover at the same time, giving them total peace of mind when buying one of my vehicles.’ St Albans-based Kinsbourne Cars Ltd is led by Richard Burrows – who, like all the four WMS Group directors, boasts FIMI branding. ‘WMS has been a first class asset to our business,’ he reckons. ‘They offer warranty products and services second to none. We have only ever dealt with two

account managers, the previous manager only leaving due to retirement. ‘In the event of a claims payment, this has always have been by return of post, while queries and technical information are only a phone call away (not an answer phone).’ Indeed: he, like the others, is a happy car dealer. But fear not. There’s still room for more, says Stone. ‘Our objectives for 2011 are to continue our growth, continue to deliver the products and the support our dealer network have come to expect, and to gain a greater brand awareness across the UK.’ The group already provides a clear means for dealer sales teams to deliver optimum results, with proven success in delivering greater product penetration and more profit per unit over time. It has the feedback and figures from dealers to back this up. But only by getting on board can you become part of both the initial profit uplift and subsequent profit growth. Everyone has to start somewhere! Show a customer how well you can handle a warranty claim, and there’s a fair chance they’ll stay with you for other service and repair work. Do this at the point of sale, and profits can be boosted by as much as 60 per cent – and that’s from proven research, not finger-in-air estimates. Sure, it’s appealing to lessen dealer exposure – but it’s not all about removing the risk of giving your own guarantee, there’s money to be made, too! For more details, get in touch with Stone on 0844 4776 4909.

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WHAT’S

HOT

Stocking ﬁllers MFL

mﬂdirect.co.uk

hatever the hot used car of the moment, you’ll probably find it on mfldirect.co.uk. That’s because the firm is perhaps THE trade-only source for one-owner, three-yearold used stock. And we know how hot such cars always are… It’s the trade source for ex-Motability cars – you know, the oftencosseted motors driven by some of your most loyal customers. A lot of these cars you’ll know well simply because they’ve been under your careful watch all their life. The story is the same around the country: these cars are hot stuff. Buying them is no sweat though, as mfldirect.co.uk is internet based and geared up for ease of use. Indeed, it’s so well managed you can even plan your day around it! The company gets so much stock, explains the firm’s Bart Day, that a weekly upload of stock is just not enough. The firm actually uploads new

Chris Brooks Warranty Management Services

Stock

Low on mileage Warranty Management Services

Warrantymanagementservices.co.uk 0844 477 4909

stock DAILY! And not just once a day, either. Oh no – at least THREE fresh stock uploads are carried out every working day, to manage the neverending supply of new motors. ‘The first is from 0745,’ says Day. This is for imminents and early returns. We run a second from 1330, with a third upload for forecourt cars following from 1400. Mind you, if it’s a particularly busy period, we can run even more than this – that’s how fast our turnover is.’ In practice, this means savvy dealers plan their day around the mfldirect. co.uk upload times. Dealers will maybe log on in the morning, while they eat breakfast (in the summer, done al fresco, naturally…), picking out stock that may be of interest to them. ‘We make searching for cars as easy as possible, so dealers can quickly get into the habit of regularly scanning the listings.’ Most do this again later on, setting aside time to check out the new additions before rivals do. You don’t have to be chained to the computer though. If the beach is calling, you can set up alerts for specific models, and be pinged when they are added to the system. ‘Such is the volume of our stock, these can be as detailed and as specific as you like: there is a fair chance that car will be handed back soon,’ says Day. The site is particularly good if you’re hunting for popular used cars of the moment. Because it follows the best-selling and most significant new car trends so closely, best-sellers three years ago will automatically be widely available in the used pool, too. Mfldirect.co.uk allows you to search for the cream of these – once again, with low mileages, one owner, full history and a clear record of dealer maintenance to their credit. Fill your boots, in other words. And then get back to the beach…

before anyone else

single owner, dealer

maintained 57 PLATE

s you know, the burden of proof for fixing any fault developing on a car within the first six months of purchase is on the car dealer. Your Low Low only way of avoiding expensive payouts is by proving itmileage wasn’t there mileage at the time of the sale. ‘In most cases,’ says Warranty Management Services’ Chris Brooks, ‘this ZONE ZONE is impossible. The best thing for the car dealer to do is transfer the risk, through the purchase of a warranty policy.’ This means that the insurance company will pay for fixing any fault that’s not down to wear or tear, or inherent at the time of purchase. So, Brooks, that’s a clear saving – but just how much can it save?

the source of ex-Motability cars. online. every day PART OF

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WHAT’S

HOT

Going to plan Autoprotect

autoprotect.net

ervice plans are one of the most discussed topics of the motor industry in 2010 – but shouldn’t the one that you offer be more than just another me-too service plan? What about if it could become a complete customer retention tool for your dealership? AutoProtect’s new Service Plan aims to do just that. It has everything that you would expect from a service plan product but also offers much more. John Morter, sales manager of Service Plan at AutoProtect, explained: ‘What we have done is look closely at what dealers want and built on those key factors. We believe the AutoProtect Service Plan beats every other product available in the market today in every key area.’ Morter summarised the key benefits AutoProtect offers for dealers: Easier to sell The AutoProtect Service Plan is based around an online system that

means flexible quotes can be generated quickly and easily, making the sales process fast and slick. Also, all quotes can be followed up for the dealer by AutoProtect’s own UK call centre – a unique service. Superb customer retention Once an AutoProtect Service Plan is in place, service reminders are automatically sent to the customer from our online system by text or e-mail without the need for dealers to take any action. Also, in a major innovation, the system includes a built-in, dealer branded loyalty scheme, designed to enable dealers to incentivise customers to return again and again. Flexible management Your AutoProtect Service Plan scheme can be set up exactly how you want it. For example, either you can hold funds or AutoProtect can manage them on your behalf while each AutoProtect Service Plan can be set up around existing warranty and other products such as MOT Insurance. Part of the family of AutoProtect products AutoProtect is one of the leading providers in dealer finance and insurance in the UK today, providing a complete range of products including warranties, GAP insurance, MOT insurance, paint protection and more. The new Service Plan fits neatly into this portfolio. For further details visit AutoProtect.net, e-mail sales@autoprotect.net or call John Morter on 0871 384 3507

 

Much more than JUST a Service Plan.

As you would expect from AutoProtect, the leading provider of F & I products to the European motor industry, our service plan system stands out from the crowd and includes a whole host of extra benefits helping dealers of all types to focus their customer retention efforts. • Customer reward and loyalty programme management • Automated email and SMS text communications • Integration of products other than servicing • Dealer fund holding option • AutoProtect call centre back up • Personalised keyfob • The software to back it all up • Extensive system training and support

If you want more from your customer retention programme than JUST a Service Plan call John Morter on 0871 384 3507 or email: sales@autoprotect.net www.autoprotect.net

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WHAT’S

HOT

Netting the perfect car TraderNet

trader-net.co.uk

ar sales at your dealer can be as hot as you want if you use TraderNet, says boss James Buxton; sourcing and selling costs will not risk boiling over. That’s all thanks to the unique new trading model devised by the firm, which for car dealers means one thing: ‘A single monthly subscription fee of £45 plus VAT. And that’s it.’ What, really? You bet. Whether you sell one car or 1,000 through the trade-only car auction site, your charge will remain £45. Forget hot or not, that’s plain amazing! Indeed, it’s almost too good to be true… but worry not. If you remain to be convinced by the young firm, Buxton offers to prove the fact it means business. ‘We offer users a 60-day free trial to demonstrate our model works. Any registered user can auction their vehicles – and within two weeks of launch, we’ve seen stock as diverse as a Fiesta to a Ferrari 599 added. ‘It’s not just for selling, either. Registered users can naturally also buy vehicles of interest, from subscribers that include a wide range of independent and franchised dealers. It’s guaranteed trade-only and operates 24/7.’ The site can boast such a diverse range of members through being totally independent of any dealer group. This means the range of cars on offer, and the range of buyers signed up to view them, will be inherently comprehensive. By joining, the aim is to create a high calibre audience to sell to, plus a rich mix of cars to bid on. The unique revenue model offered by TraderNet is relatively new to the market, explains Buxton. But this isn’t stopping dealers signing up. You may already have seen it, of course. TraderNet is currently running a big advertising campaign – and Car Dealer ran a feature about the firm in our last issue. This is helping the trade audience to grow by the day, says Buxton. ‘It is a significant audience too, as we can boast a high calibre of subscribers. As such, we’ve ensured all the expected professionalism is built into the site, too.’ By this, he means simple sophistication; users determine the start price, reserve, and auction length – the site even allows you to adjust the exact time the auction finishes, in order to avoid busy periods or outside of working hours. In the summer months, this means you can account for the fact business will be quiet at many key times, which makes choosing high-activity spells to showcase your cars of utmost importance. It gives you a fighting chance of minimizing the effects of the heat-haze market lethargy. Each user can auction or purchase an unlimited number of vehicles per month. ‘The MyTraderNet back end facility records selling vehicles as well as vehicles you are watching or bidding on. Through it, you have the ability to ask or answer questions as well as informing a user when their

item has hit reserve, been outbid, or when an item is ending soon.’ Cool stuff, we reckon; not only can it save on auction fees, but it also speeds up cashflow, and basically makes for a much less sweaty auction process. Operated entirely from your laptop, the purchaser collects direct from your premises, meaning no heated arguments with auction truck drivers. That’s a bonus in itself… All of which leaves just one final question. How hot do you want to make things?

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WHAT’S

HOT

Staff vroom JGA

jgauk.com

ecruitment is currently hot – but it’s not the fact things are so busy right now that JGA’s John Marrison is so keen to talk about. It’s the reality that recruitment is ALWAYS hot that is of real interest to car dealers! Forget talk about the recession killing the recruitment market stone dead. Car dealers will always need a means of finding the best staff possible. Just because you are cutting back doesn’t mean you stop hiring outright. No, says Marrison, you simply alter your focus to finding the best single individual you can. This is where Car Dealer Power winners JGA come in. Well, potentially, it could be JGA and you. The big news right now is a huge upturn in franchise business, reveals Marrison. JGA compromises locally run recruitment divisions across the country, and these are all staffed by ex-motor industry professionals. People such as, well, YOU. Maybe you work in a car dealer’s HR department and fancy setting up

on your own? With Marrison’s help, you can do this, utilising those contacts you’ve made in the dealer world to really offer something bespoke. There’s big money to be made. ‘Two or three of our operators report excess free income of more than £250k,’ he reveals. ‘If you are a successful and enthusiastic individual, we offer you a clear route of using these attributes to make money. ‘It actually makes little difference what your background is. If there’s one thing all our most successful operators have in common, it’s enthusiasm. If you think this in your own mind, then nothing will stop you.’ Indeed, it’s so hot, Marrison offers a word of advice. ‘Our open points are diminishing fast! We are talking to seven or eight firm prospects right now; our consistency of service is creating a big polarisation between our type of recruitment and those at the lower end of the job market. ‘We have a very strong brand and the current car market development is strengthening this. With more and more car dealers finding the prospect of self employment very appealing, it won’t be long before our open points list is filled.’ If you want to get in there and use your car dealer expertise to make big money, don’t hang around!

Why choose JGA…? An unrivalled reputation built on the continuous placement of top calibre candidates across the Automotive Industry. Specialists in tracking the talent that ensures the success of your business. We take the time and the effort to understand a clients’ expectations and a candidates’ needs. Our network of regional offices ensures national coverage. Each one is run by experienced Motor Industry Professionals. We were recently voted 2010 Automotive Recruiter of the Year.

These are just a few of the reasons why we continue to be the natural choice and set the standards. Web: www.jgauk.com Tel: 0845 644 3003

$BS%FBMFS 1PXFS

THE LOCAL, REGIONAL, NATIONAL AUTOMOTIVE RECRUITERS

Recruitment

Winner 2010

2010 Automotive Recruiter of the Year

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WHAT’S

HOT

On guard Supagard

supagard.co.uk

hen you get OE approval from one car maker, it’s good news. Add a few more and things look even better. So what sort of a profile can Supagard boast, which is approved and recommended by more than 20 car brands? Well, the sort of profile that owners of two million cars in the UK alone have bought into. That’s equal to a whole year’s worth of new car sales, and is why Supagard has long been a hot proposition. Even more so in the height of summer: What was it Will Smith sang in Summertime..? Yup – ‘all day waxing…’ Having a clean car in the summer is a prerequisite for many car owners, and it is here that Supagard offers you a good opportunity of boosting your aftersales revenues. Now, despite what The Fresh Prince may have said, the reality is,

most people don’t want to spend all day waxing. Certainly not when it’s 30 degrees and the cricket’s on the telly. They’d much rather their car possess an independently tested, manufacturer-approved series of protection products that allowed them to get a mirror finish without the legwork. Products such as those offered in the Supagard range, which are professionally applied by a nationwide array of car dealers that could include you. If you already run a vehicle preparation area, this is the perfect way to sweat that asset, while also offering your staff commission-based incentives, too. What’s to lose? Of course, Supagard covers all the usual paint protection offers. But there’s a whole host of other protection packages too, including fabric, carpet, vinyl and leather. Supagard has products to clean and protect cabriolet roofs, ones that stop car dashboards cracking in the sun, even micro carbon sponges that shift summer bugs in a flash (but not a scratch). You name it, the firm can, with your help, offer a protection solution. There’s even a really innovative scheme – Supagard KeyFinder. Designed for customers who fear losing their car keys, it carries the promise of returning nine in 10 of all keys lost! Pretty amazing, and thanks to a £10 finder’s fee that ensures its success. How cool would it be to offer this alongside the other products, too? You don’t even have to believe us when we say they’re worth a look. Instead, just listen to Jaguar. To Mercedes. To Lexus. To… well, you get the idea. Will you get on board?

Does your current paint sealant supplier offer you the opportunity to also make profit from products that have nothing to do with paint protection? Supagard GAP Fall Back – coming soon Chris Brooks Warranty Management Services

Warranty Management Services Warrantymanagementservices.co.uk 0844 477 4909

s you know, the burden of proof for fixing any fault developing on a car within the first six months of purchase is on the car dealer. Your only way of avoiding expensive payouts is by proving it wasn’t there at the time of the sale. ‘In most cases,’ says Warranty Management Services’ Chris Brooks, ‘this is impossible. The best thing for the car dealer to do is transfer the risk, through the purchase of a warranty policy.’ This means that the insurance company will pay for fixing any fault that’s not down to wear or tear, or inherent at the time of purchase. So, Brooks, that’s a clear saving – but just how much can it save?

For further information, please contact Supagard Ltd on 0141 633 5933 or email info@supagard.co.uk

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WHAT’S

HOT

The train gang EDT

edt.uk.com

t’s all very well getting the hottest initiatives for car dealers to utilise, but how much attention are you paying to the system as a whole? You may have glittering offers but they won’t turn to gold if your business is not operating at its peak. Here is where expert outsiders come in. Consultants such as Essential Dealership Training have the decades of car dealer experience. EDT gives even the unconvinced good reason to give them a go. The firm offers dealers a free of charge consultation on current business practices. Here, they’ll take a look at how you do things at the moment, to see if their many schemes and initiatives would be of benefit to you. If they reckon there’s room for improvement, they’ll then give you a KPI audit, comparing your car dealership to industry benchmarks. This will offer a guide ‘potential benefit’ to getting them on board – with

the added reassurance of a money-back guarantee. All that’s designed to ensure there is no stopping you signing up. So, if there IS no stopping you, what can you expect? First of all, a drive: to a mutually independent location. The idea here is for EDT to meet in a ‘neutral’ base, so both parties can be as free-spoken as they need to be. Then, EDT will visit you and conduct a series of observational work, to see how you operate and just where extra help can be provided. This is a sort of Apprentice-style ‘Margaret and Nick’ reporting session. Here, many areas will be watched, such as overall dealership personality, employee characteristics, management styles, inter-dealer relationships, site and stock presentation, marketing, even customer behavioural patterns. From this will develop the means of training up your dealership for improvements. Each case is different, explains the firm. There is no ‘one size fits all’ – it is this bespoke approach that they reckon makes them so effective. Any evidence of this? Well, they were called into a Midlands car dealer, which was selling 20 cars a month. Although the plan was to hit 300 a month, after a year, sales were up to 425 a month. Profits and CSI scores were up, the dealership was transformed… and a big-money takeover was concluded soon after. Result? And then some! By training your staff, you’ll make sure they’re as hot as the constituent parts of your offer. This will help you sell more cars, make your customers happier and make it a happier and more efficient place to work. Something, we’re sure, many of you will warm to… [CD]

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DRIVE TRAFFIC Your website is your online forecourt. So it needs to work as hard as you do. It’s also got to be easy to navigate and rank highly with Google and other search engines that will drive traffic to your website. We’ve been building bespoke websites exclusively for the motor industry since 1999. A number of our sites for dealerships have won awards. And being automotive professionals ourselves, we know what your site needs to help you sell more cars. Find out more by calling 0845 2508820 or visiting www.ukwebsites.net Email: support@ukwebsites.net

Part of

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auctions

Auctions are easier on revamped site BCA is making it easier for consumers to buy at auction with a user-friendly redesign of its website. The free service is now easier to search through, helping potential buyers find cars of interest from BCA’s nationwide listings. It is powered by a new stock locator system that allows criteria-defined searches of BCA auction stock. This uses category definitions such as make, model, bodytype, fuel and age. Results can be displayed by BCA site location, and also include details of when the car is going to auction. Full images of the car are provided, with the specific details on that car. Buyers can even set up automatic searches with email alerts. Tim Naylor, PR manager at BCA, said: ‘Our redesigned website makes it much easier for buyers to find out exactly when and where the precise vehicle they are after will be on sale at BCA. Our goal was to create a website that makes it easy for buyers to find the vehicles they want to buy.’ Which is, he adds, good news for all concerned – including sellers. With a jargon-buster and special BCA Showroom section for top motors, the site has never been more consumer friendly. Meanwhile, rival Manheim has opened its online trade sales division and promised up to 1,000 cars a day will be offered through it. Called Manheim Direct, it allows buyers to purchase both over the phone and online. To give it an edge, the service is also backed

SMA take top award from ITM SMA Group has been awarded Best Independent Vehicle Remarketing Company 2010 by the ITM. The Institute of Transport Management handed over the gong in a special ceremony. SMA MD Bob Anderson was pleased, crediting the company’s infrastructure both before and after a sale for the big win. He said: ‘We feel we offer our customers the perfect environment to buy and sell their vehicles and we thank the Institute for recognising all the hard work and dedication that goes on behind the scenes at SMA.’ The oldest – and largest – independent vehicle auction company in the UK, SMA’s technical services director Ronnie Stewart added: ‘This award has come about through many people’s hard work and dedication to getting the vehicles right for the clients.’

Henstock Auction stations Don’t forget the paperwork or it could cost you at auction

by a remarketing-industry first – ‘Live Chat’ functionality. It replaces the former vrs vehicle remarketing solutions set-up. MD Mike Pilkington promised it would be trade-only, and said it has been introduced in response to customer demand. ‘We set out to restructure an already successful business and have created a simple to use, online proposition that offers buyers not only a significantly increased choice of stock, but also the widest choice of purchase options,’ he said. ‘Close collaboration with sister company, Manheim Auctions, and the excellent support received from a range of key vendor customers has delivered an exciting and truly complementary offering for trade buyers looking to source quality used cars.’

New way to track down insurance deals

MOTORPOINT has become the first car supermarket to offer a money-saving customer car insurance deal. Autonet Insurance has developed a search engine just for Motorpoint. This allows customers to search from a range of car insurers, ‘Comparethemarket’ style, through a new section on the Motorpoint website. Paul Winfield, ops director at Motorpoint, which also runs trade-only website Auction4Cars.com, said the partnership with Autopoint is further evidence of the firm’s determination to save car buyers money, ‘enabling customers to benefit from great savings on their insurance’. He added: ‘We chose Autonet for their experience, consistency, and levels of service – values we share at Motorpoint – and look forward to working with them in the future.’

he launch of the new V5 document in August is a timely reminder of the importance of a car’s documents in the remarketing arena. The presence of the V5 means no delays in onward selling, while a full service history shows the vehicle has been well maintained by the previous owner and helps confirm the mileage is correct. The trick for the seller, of course, is to make sure both vehicle and history file are together at the point of remarketing. BCA catalogues ‘Without it [full all consigned vehicles online service history] and states whether the service history is present – if you’ll fail in it is missing that might just convince a potential buyer to attracting bids. look elsewhere. Even a part-history But why wouldn’t is better than documents be present at the time of sale? If the car’s nothing there, surely the paperwork should be with it? With many cars reaching auction from fleet and lease sources, the car might have spent the last three years at one end of the country, while the paperwork has been kept at the other. When we conducted research in 2005 we found that up to half of all vehicle documents held by fleets may be incorrect. A lot of this was caused by the introduction of the new V5 document but not all. Up to 15 per cent of documents were simply missing and around 10 per cent were mismatched with the wrong registration number on the paperwork, for example. BCA estimated that up to 50 per cent were likely to contain minor errors on detailed verification. It prompted us to launch our own automated document storage solution – DocuSafe – which holds details of some 500,000 vehicles for clients and retrieves documents in seconds. The value placed on a service history will depend on the vehicle mileage. On a typical three-year old, 60,000-mile ex-fleet car this could be £300 to £500 on an average value of around £7,000. It could mean the car not reaching reserve introducing further – often hidden – holding costs for the seller. The potential to lose money increases with higher value cars. Prestige models should ideally have a FSH – without it you’ll fail in attracting bids – even a part-history is better than nothing. If you’re selling, pay service to the service history – you can be sure potential buyers will!

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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“ARE WE NEARLY THERE YET?”

Schools out, it’s one of the best summers on record, your customers are heading for the coast with the family and suddenly the car grinds to a halt, right in the middle of a game of I spy – THIS IS A DISASTER! AND IT COULD BE HEADING BACK TO YOUR FORECOURT. An irate family stuck in 90 degrees heat, miles from anywhere, and carrying a potentially volatile load (yep, bored, tired, thirsty and hungry kids). Still, at least you can be satisfied that as a dealer you did your best and in the spirit of customer care, your stranded customer has a good warranty and a rescue and recovery package. All they need to do is call the recovery company and decide if they want to continue to their destination or go back home whilst their broken vehicle is taken to a garage for repair and this could all be covered under the warranty at no cost to your customer. They can re-arrange the day out and will be glad that you provided the protection for them. And you don’t need to fire up the recovery truck to bring this mobile disaster back to your garage... at your costand then pay for the repairs whilst the kids redecorate your showroom with chocolate ice cream – nice! If you want to avoid this scenario it’s about time you spoke to WMS and arranged for one of our experienced regional managers to talk you through our fantastic range of customer (and family) friendly warranty and recovery packages for peace of mind and protection. This can also have tremendous benefits for your business by providing additional profit from sell up opportunities as well as keeping your customers on the move and your recovery truck free for your own work. If you want to avoid getting hot under the collar when your customers reach boiling point then let us take the heat out of the situation and help you add some seriously cool profit to your bottom line. That’s why we are the nations favourite warranty company. It’s your choice, protect your customer and protect your profit or pray for rain! To find out more about our products and services please contact our business development director, Eric Stone on 07789 682502 or visit our web site www.wmsgroupuk.com..

If you would like to discuss the products and services available from WMS Group, please contact me, Eric Stone, on 07789 682502 or email sales@wmsgroupuk.com

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0844 477 4909 www.wmsgroupuk.com 6/8/10 10:31:56

right click

...in association with GForces

Keep your customers satisfied Finding new buyers is costly, which is why GForces’ Tim Smith says keeping existing clients happy is key

oday dealerships are one-stop-shops for buying, trading and servicing cars. However, emphasising all three of these entities to customers can be difficult. Developing customer loyalty has the ability to battle a recession by promoting a wide range of services and incentives. A good client loyalty programme will be able to effectively and efficiently gather information to target particular spending habits. Building customer faithfulness is an essential component in developing consistent revenue, as well as the overall growth of a dealership. Peter Isted, managing director of Lifestyle Europe, told Car Dealer in Issue 28 that the biggest threat facing car dealers today was ‘getting customers back through the door after a purchase – dealers are all being reminded of this reality and how we must focus ever harder on existing customers, now that scrappage has run its course’. Dealers can now activate and track rewards cards, gift cards, and service packages. With service packages, dealerships can now electronically track something as simple as the first oil change, to full-blown packages or other common services, directly on a consumer’s card. Not only does this provide dealerships with the ability of knowing how many customers return for their first oil change, but they can also generate additional revenue by pre-selling maintenance packages to their customers. A good customer incentive programme can be tailored to meet specific needs and parameters. By tracking, auto dealers can learn buying habits of particular customers and gain the ability to adapt a rebate, or points program. For example, if a customer has come to the dealer only once to get an MOT, it can be assumed that the customer went elsewhere to get the service done. A point programme will establish incentives for the customer, allowing them to earn points or return to the dealer for all of their maintenance needs and possibly lead to more. Essex Auto Group introduced its loyalty scheme in March 2008. The card entitles every new and used car customer to £1,000 of accrued benefits

‘It’s 35 times as costly to find new customers as it is to keep your existing ones happy.’ pre-loaded on to it following their purchase. Since then 14,000 cards have been issued, with 40 per cent of customers activating them. They can be redeemed for special offers on new cars, an extra £500 off a used car, five per cent discount off servicing or parts and accessories or four car valets per year. Fiat dealers have also launched a new initiative called myFiat. The two main elements are myAccount, where customers build a profile so offers can be tailored to them, and myRewards,

which allows them to earn points towards future discounts. As another means of maximising ongoing customer interaction and fostering greater loyalty, dealers can integrate an online parts shop with a live parts enquiry facility to help increase lead generation and turnover. EAG group marketing director Matt Brown believes retaining customers using the loyalty scheme is as important as seeking new business. ‘It’s 35 times as costly to find new customers as it is to keep your existing ones happy,’ he said. ‘Our programme is about keeping customers happy and, as a result, loyalty is having a beneficial impact on our business.’ Your loyal customers pay, stay and refer to others. This in turn brings more profit into your dealership therefore it’s vital to keep your friends close but your customers closer.

Are you all talk or do you Live Chat? Live chat enables dealerships to generate hotter leads, qualify customers and decide what the customers’ needs are before they ever see them at the dealership. Let GForces re-introduce the "human element" into your online interaction and start converting at least 25% more site visitors into leads.

0845 658 9290

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Embrace THE INTERNET

It’s the bread and butter of our business – get it wrong and you’re in trouble, but nail your sales patter and you’ll be flying. Here are a collection of top sales tips

The internet isn’t something to fear, it’s something to love and cherish, explains Gforces’ commercial director Tim Smith. And for the savvy dealer it holds the key to great riches, but you need to get it right!

FEATURING

IN ASSO CIATI ON WITH

echnology breeds contempt. At least it does with the vast majority of the mass market late adopters of all things new and innovative. It is human nature to resist change, to seek a state of security and safety and fend off disruptive influences of the status quo. This attitude was presented in The Diffusion of Innovations by a sociologist named Everett Rogers who coined the phrase ‘early adopters’ and described a very neat and now famous curve to illustrate his theory. Paradoxically, this attitude is at odds with the way of the world and Mother Nature herself. See Mother Nature embraces evolution and change. Civilizations either adapt to survive or commit themselves to the ashes of history. And so it is with technology of all types. At first I was afraid, I was petrified… of mobile phones that is and the perception I had of an incessant interruption to my daily routine. Now I can barely operate without my iPhone (otherwise known as my life support system). Most of us absorb technology once it’s settled in and we feel comfortable using it. Furthermore, it often takes us time to become accustomed enough to technology to use it to its full potential. An example would be using a PC for word processing initially, then getting to grips with spreadsheets, gaming and email. So we turn to the twin worlds of digital and automobile, the now entwined realms of the motor trade and the internet. Roger’s diffusion theory holds true. The dealership owners, entrepreneurs and directors are often the type of people who either embrace change or see it as a necessary evil in order to survive and thrive. Whatever their angle, the common factor is they factor it into their business days. These people have often identified the need to utilise the internet for the good of their business and unlock its potential. They may recognise this simply because their competitors are doing it, or they recognise that the web is now integrated with society. The delays to a widespread adoption within a dealership often rests with the personnel who find either their

08 ] $BS%FBMFS.BH DP VL

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‘Don’t let your ego get in the way of the process – people don’t buy from people they don’t like.’ Joanne Barber

Regional sales manager, Volvo Cars London PRESENTATION is important. This includes ourselves, our dealerships and most importantly, our products. If every step of the sale is presented to the customer at the highest possible level, this breeds confidence. First impressions are vital and should exceed expectations throughout the customer journey. Everybody should take pride in themselves, their surroundings and what our products are capable of delivering.

John Wadeson Andrew Jeffery

Dealer principal, Hatfields Sheffield ENGAGE in small talk to put the customer at ease. Find out as much as you can about the customer. Sit down at a desk alongside them. Obtain contact details and write directly on to an enquiry form. Write down places and people mentioned by the customer during the conversation. Take a genuine interest in the customer and address them by name. Ask: ‘What are you driving now?’ and ‘What are you looking for in your new car?’ But above all make the customer feel valued and special.

role changing and feel threatened or those that fail to see the value in the new forms of lead generation and communication. This is natural. If you’ve been successfully selling cars face-to-face for 25 years and someone tells you that emails or live chats or enquiry forms are as important as pressing the flesh you are going to question their rationality. In fact, you may do a bit more than that and simply not respond to emails at all, or delay sending that brochure out from the online enquiry by a week. The excuse is that there is always something more

Brian Blanchard

‘The internet has flourished in the automotive trade because it delivers information on consumer terms, not dealers’.’

Mazda sales manager, Mitchell Group ALWAYS give the true facts and believe in your product. If need be, you can bring in a team member to back up the information you are giving and the customer will feel confident and reassured.

Paul Fox

important to do in the showroom. This behaviour is to be expected. It is not the salesperson’s fault. It is natural. The internet is perceived as a threat to many within the motor trade. A series of expletives is the standard accompaniment to internet commentary. The culture within the dealership needs to encourage the adoption of new techniques to deal with the internet as a lead generating and sales tool. The internet has developed the means of communication and transaction on a global scale like no other technology but it has been driven by the consumer. If there is a market, technology will be invented to fulfil it. The internet has flourished in the automotive trade because it delivers information on the consumer’s terms, not the retailer’s. This seemingly minor point is the driver of change. The rules of engagement have developed to suit the buyer with a baseline of convenience. The power now rests with the consumer and if you do not make it easy for them to engage with you, they will go elsewhere. Tim Smith is a director at GForces, the leading web management and marketing specialists

Used car sales manager, Volvo Cars North London GREET the customer. It might seem very basic, but asking for and using a customer name is often overlooked. This is a very positive way to engage a customer, build a long-term relationship, gain a contact and potentially disarm any negativity that might be heading your way!

Ian Butler

Manager, Volvo Cars London International Customer Sales RESPECT: Treat every customer in the manner that you would be expected to be treated if you were the customer. Ask, listen, qualify, listen (again!). Communicate with the customer, don’t just talk to them. Never assume anything. Identify the buying signals and always ask for the business. Do not apologise for the fact that your role is to sell them your product. If they have chosen to enter your place of business in order to discuss your products, then they should expect you to try and sell to them.

Tony Hinkley,

Sales executive, Guildford Mazda FIRST impressions are the most important; a warm, friendly, confident and sincere welcome is a necessity.

Ben Llewellyn

Managing director, UK Car Exchange FIND out about the customer, to ensure the products and features you highlight match their individual circumstances. Don’t fall into the trap of engaging with the ‘wrong’ buyer. If more than one person is involved in discussions, quickly establish who the decision-maker is, engage with them and aim to fulfil their needs. And don’t let your own ego get in the way of the process – people don’t buy from people they don’t like.

Kam Shokar

Mahmood Karmali

Sales director, Romford Mazda KNOW your stock before your customers do. If your customers know more than you do, you have little chance of selling to them.

$BS%FBMFS.BH DP VL ] 09

Business centre manager, Volvo Cars London SHOW the customer commitment and demonstrate credibility through keeping promises and understanding customer attitudes. Remember continuity goes a long way in retaining business, as does the consistency in delivering excellent service through continuous innovation, creativity, improvement and always taking into account your customers views and expectations.

Sales manager, Volvo Cars Central London PRODUCT knowledge is vital. Being able to answer customers’ questions straight off inspires confidence and confirms to them that they are dealing with a professional.

Katherine Ward

New car sales manager, Volvo Cars West London NEVER give up, always be closing, enthusiasm is infectious, demand a premium for quality of service and always have integrity in everything you do.

Alex Purdie

National groups manager, Kia Bolton OUR sales staff really find it easy to sell! Why? Well, if they have done the process from meeting their customer, establishing the wish list, showing and demonstrating the product, and explaining the benefits of dealing with us, then it’s easy. It is easier for the salesperson to do this in our sales environment, which presents our product in a crisp, professional, business-like environment and feel confident that we can fulfil the expectations of our customers.

Jerry Horwood

Managing director, 10ACT DON’T assume you know what your salespeople are doing. It’s human nature to leave the harder sales to last – but that’s the exact opposite of what you need to do. Selling is about understanding customer needs and having the determination to show them you are the best person to fulfil them. Consequently every business needs to ensure their salespeople are making the difficult calls.

Jeremy Worthington

Director of security, SBD OFTEN sales reps pitch features when it comes to technology upgrades. But prospects only care about what these features will do for them. For example, our surveys reveal 80 per cent of drivers who have a smart key would specify it on their next car, yet the option take-up is below five per cent. If you explain the benefits of this technology like not having to fumble for keys while carrying shopping, luggage or children and the safety to female drivers in a dark car park of having instant access to their car, then you could get the option sale and a happy repeat customer.

Tony Gannon

Communications director, BCA LOOK after the business you’ve already won. BCA’s annual Used Car Market report suggests that used car dealers have room for improvement when it comes to following up with existing customers. Only 15 per cent of previous customers are approached by their dealer to see if they might consider replacing their car or buying an additional vehicle.

12 ] $BS%FBMFS.BH DP VL

$BS%FBMFS.BH DP VL ] 13

6/8/10 10:32:00

feature

Brilliant Beemers

We take a look at BMW’s back catalogue to come up with our favourite M cars

ILLED as the ultimate driving machines, BMWs capture the very essence of what a drivers’ car should be. Rear-wheel drive, glorious engines and

handling to die for mean pretty much any Beemer is worth a look. But then there are the M-badged glitterati of the range; the real performance monsters that have

car nuts salivating at the mere sight of that famous tri-colour badge. But which of those icons are true greats? Here, JAMES BAGGOTT picks five.

1. M1

BMW’S first and only stab at a true supercar was this wedge-shaped slice of motoring goodness. The only mid-engined Beemer ever to be massproduced, it had rear-wheel drive and a 3.5-litre, six cylinder powerplant. That lump pumped out 276bhp and was enough to help it crack 160mph. Only 456 examples were sold between 1978 and 1981, making it a rare, and equally very collectable, car now.

2. M3 CSL (E46)

By the time the E46 came along, the iconic M3 had gained a mid-life paunch and other hot saloons were making nasty ‘chubby’ jibes at it. BMW wasn’t going to take any of that so put its super saloon on the Atkins diet – out went 100kg of flab with lightweight parts taking their place, such as a carbon-fibre roof, while ‘useless’ extras like air-con and electric windows were junked. Although the CSL wasn’t that much quicker to 60mph, it was better to drive and with only 1,400 made, more desirable.

3. M Coupe (E36)

It was the odd-ball, hard top brother of the top-of-the-range Z3M, but the M Coupe has become a performance demi god among car fans. Lairy tail-sliding action was a given from this hooligans’ favourite and that’s no surprise with the 3.2-litre, 321bhp unit slotted under the bonnet. The looks weren’t to everyone’s tastes, but that hard top made it stiffer than its droptop brother and the better car to drive.

4. M635CSI (E24)

The M1 might not have set the sales charts alight, but that glorious engine at its heart soon found another home – in this. At the 1983 Frankfurt Motor Show, BMW unveiled the M635CSI which featured the same 3.5-litre lump but now producing 282bhp. The sprint to 60mph was completed in an impressive 6.4 seconds and even now it looks incredible.

5. M5 (E60)

Picking the best M5 is like choosing which one of your kids you like the most, but the V10 engine in the E60 helps it get the nod here. The awesome unit produces 500bhp, 520Nm of torque and fires it past 60mph in 4.7 seconds. Following in a bloodline of great M-badged 5 Series, the E60 was packed with technology such as a head-up display, seven-speed SMG gearbox and launch control.

‘Don’t let your ego get in the way f the process – people don’t buy from people they don’t like.’

Volvo Cars London t. This includes nd most importantly, of the sale is presented est possible level, impressions are vital tions throughout the y should take pride dings and what our ivering.

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mer in the manner that be treated if you were ualify, listen (again!). omer, don’t just talk thing. Identify the sk for the business. Do hat your role is to sell have chosen to enter der to discuss your expect you to try and

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Katherine Ward

New car sales manager, Volvo Cars West London NEVER give up, always be closing, enthusiasm is infectious, demand a premium for quality of service and always have integrity in everything you do.

Alex Purdie

Jerry Horwood

Jeremy Worthington

Tony Gannon

$BS%FBMFS.BH DP VL ] 13

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...in association with Really Good Domains

Make your incentives count Are you making the most of manufacturer incentive programmes? WinWinWorld can help you do just that

our manufacturer is probably offering you thousands of pounds to help you sell cars. Nothing new, they have been doing this for ages. But WinWin World now have the key to unlocking this cash for you. Do you take full advantage of all your manufacturer’s marketing programs to sell more cars and increase profit? Okay, it’s a simple question and should have an obvious answer but... it’s complicated, and therein lies the problem. Manufacturers have very good reason to keep their programmes in a constant state of flux – it’s all about availability, strategy, competition, stocking, shipping, long-term planning, demographics, budgets and much more. Marketing programmes change each quarter as a general rule but are often tweaked monthly, minor changes being made weekly, even daily, as the more pro-active marketing professionals respond to daily trading conditions. Communicating this constantly changing message down to sales staff and ultimately to customers should be relatively simple with the high-level, high-impact quarterly campaigns. But, communicating the changes and much of the detail can be virtually impossible. Even so, many salespeople and controllers are just not aware of what is on offer as it’s just too complicated to work out, especially when under pressure or at busy times. This results in lost opportunities, sales and profit for the dealer. For the manufacturer the effect can be even worse as the same lost opportunities and sales are magnified and the damage can be longer lasting with long-term strategies and alliances affected. The WinWin dream solution is for sales controllers and managers to be presented with the very latest marketing opportunities as soon as they start to talk about finance options with a customer. No more thick marketing booklets to wade through, no more updates and amendments to check, just the best, most accurate and most profitable price immediately. WinWin World’s product TrackIT has been well known as the industry’s leading deal optimiser. The TrackIT system has proven over many years its ability to generate surprisingly large amounts of additional profit for dealers by automating the complicated sales calculations required to sell cars. TrackIT uniquely allows the sales controller to make multiple offers and adjustments in a very short space of time with a constant eye on profit optimisation. Manufacturers’ marketing programmes have been a part of the TrackIT

system for a while but they have been something that the controller adds on to the deal at the end. They say the simple things are the best and most effective in any process and this new change to the TrackIT system by WinWin is both of these. TrackIT now identifies the correct and qualifying manufacturer marketing programs as soon as the vehicle is selected. It then transfers any marketing contribution to the deal directly and ultimately to the order form. Sounds simple doesn’t it? Well, the benefit to the dealer is huge, especially if your manufacturer or manufacturers offer lots of marketing support in this area. Almost as a by-product this further benefits multi-franchise sites where the problem is multiplied and also keeps a handle on any marketing claims with the manufacturer. Would you like to promote your programmes to a wider world? Simply stack some test deals and use the results in your local advertising. Want to know more? Call WinWin World on (020) 7538 6688 and arrange to visit the WinWin showroom in Tring Hertfordshire where you will be able to see all of the systems running in real time. Alternatively, attend one of the firm’s race days at Brands Hatch or Silverstone in August and September. They will be a great family day out where you can combine business and pleasure, meet the team and see for yourself what WinWin can do for your business. Race days have limited availability so call asap.

WinWin can help you maximise all manufacturer benefits on offer by keeping you up-to-date with all the marketing programme changes on offer from the different car makers

‘Many salespeople and controllers are just not aware of what is on offer as it’s just too complicated to work out.’ CarDealerMag.co.uk | 73

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Trader directory

inding the right cars at the right prices isn’t always easy difficult. On top of that, selling cars that you don’t necessarily want to put on the forecourt can be tough

Alfa Romeo Sturgess Alfa Romeo Scott Allen 0116 275 8800 scottallen@ sturgesscars.co.uk Buying used Alfa Romeos up to five years old Benfield Alfa Romeo Dax Pearce dax.pearce@Benfield motorgroup.com Alfa stock wanted up to 40,000 miles. Call for immediate bid. 07501 257220 or 0191 211 2200

Aston Martin Mangoletsi (Holdings) Limited Fraser info@mangoletsi.com 01565 722899 HWM Aston Martin Paul Spires paul.spires@hwm.co.uk 01932 240611 07850 326755

Audi Wimbledon Carriage Company Limited John Crisp 07885 211872 Walton & Epsom Audi Mark Loughnane 01932 220404 07739 519306

BMW Williams Rochdale Craig Fenlon 01706 717700 07808 092110 Vines Group Dominic McConnon Buying used BMWs up to 5 years old 07776 246905 dominic.mcconnon@ vinesguildford.bmw-net. co.uk

Bentley Harwoods Simon Elkin 01798 877211 07803 088711 Jack Barclay Bentley Derek Bennett 020 7629 7444 07713 887 886

Citroen Marlborough

too. Our Trader Directory aims to alleviate these problems. Instead of thumbing through endless pages in price guides looking for the right trader, you can consult the Trader Direc-

Ferdi Khab ferdik@marlborough. uk.com 020 8225 5840 07949 219 830

Hyundai

Daihatsu

Hatfield Hyundai Mark Littler/Tim Barnes 0161 767 9500 07920 599 394 07787 921 222

Woodford Motor Co Ltd Stephen Barnard 0208 504 0017 Proven Daihatsu Keith Pattison 01428 652554 07771 547406

Ferrari HR Owen Ferrari Nick Carey nick.carey@hrowen.co.uk 07824 362229 Monza – Ferrari Andrew Ludlow ferraribuyer@ntlworld. com 07889 305 053 Maranello Ferrari John Dutton 07817 019 456

Fiat Glyn Hopkin Ltd Glyn Hopkin 07730 711889 Sturgess Fiat Ian Callis 0116 254 1717 icallis@sturgess cars.co.uk Buying used Fiats up to five years olds

Ford

Bushey Heath Hyundai Jon O’Donoghue 0208 420 5100 07976 177 959

Jaguar Sturgess Jaguar Chris Allen chrisallen@sturgess jaguar.co.uk 0116 282 6868 Buying Used Jaguars up to five years old Charles Hurst Jaguar Stewart Begg 0208 938 1300 07534 927 821

Jeep John Holland Sales John Holland / Mark Holland 07836 690818 07831 824644

Kia Lee Gilmour Tower Hill Garage 01923 263700 07768 367085 Chapelhouse Kia Andy / Neil 01925 570800 07891 531129 07825 311 297

Lexus

Benfield Des Sammon des.sammon@benfieldford.co.uk 07831 828024

Lexus Twickenham Dave Cooper / Steve Gurr 07831 704134 07921 408983

Lifestyle Ford Richard Walker 07748 177889

Sturgess Land Rover Chris Allen chrisallen@sturgess jaguar.co.uk 0116 282 6969 Buying used Land Rovers up to five years old

Honda Brayley Honda Mark Corr 07812 342 635 Thames Honda Group Jerome Chandiram 0208 845 3551 Holdcroft Honda Luke Regan / Chris Thursfield 07971 543884 07813 737 921

Land Rover

Beadles Land Rover Greg Wilcox g.wilcox@beadles-landrover.co.uk 07740 717209

Lotus Dick Lovett 07808 940777

tory, either in the magazine or online, and find them right away. If you’d like to be included you can submit your details in the Directory find out how at the bottom of this page.

Murray Motor Company Graeme Robertson 0131 200 8888 07765 252745

Maserati Meridien Modena Warren Butt 02380 283404 07860 530703

North City Autos (Chingford) Ed Tyrrell Interested in low mileage FSH vehicles 020 8524 8855 07736 610285

Nissan

Mazda

Sturgess Nissan Ian Callis 0116 254 1717 icallis@sturgess cars.co.uk Buying used Nissans up to five years olds

Lifestyle Mazda Mark Spowage 01293 845045 07974 770020

W R Davies Neil Swan 07739 625958

HR Owen Nick Carey nick.carey@hrowen.co.uk 07824 362229

Mitchell Mazda Brian Blanchard 07826 817850

Mercedes-Benz Hughes of Aylesbury Tony Oblein 01296 319600 07785 781623 Tony Purslow Ltd Simon Sneath 07810 771 161 Mercedes Benz of York Darren Hewitt-Craft dhc@rybrookmercedes. co.uk 01904 694000 07701 001491

Mini Vines Group Dominic McConnon Buying used MINIs up to 5 years old 07776 246905 dominic.mcconnon@ vinesguildford.bmw-net. co.uk Sytner Mini Matthew Jones 07870 688793 Specialist Cars Stevenage – Mini Jason Ayriss jason.ayriss@specialistcars.co.uk 01438 760303 07918 680445

Peugeot Robins & Day Guildford Chris Dabb 01483 414 311 07768 336306

Porsche Paragon Mark Sumpter 01825 830424 07778 968911

Renault Sunwin Renault Preston Sean Dean 01772 329900 07790 253827 Renault Retail Group Ian Millichip 07718 967026

Saab Ealing Used Saab Specialists Peter or Matthew 020 8579 2969 07836 336 338

SEAT Hobin Group Ltd – Seat Alex Cullen 07950 566427 Kings Seat Mike Read 07789 956937

Skoda Mitchell Skoda Richard Macklin / Ross Thompson 07500 539791

Mitsubishi

Smart

Livery Dole Mitsubishi Nigel Clegg 07836 516945

Smart of Exeter Darren Webber 07940 756063

Subaru Cheam Subaru Richard James 07836 549553 Sparshatts Subaru Louis Jones louis.jones@sparshattsgroup.co.uk 01489 785111 07775 508255

Suzuki Glyn Morgans Ltd Glyn Morgans 07836 240059

Toyota Currie Motors Toyota Dave Cooper / Steve Gurr 07831 704134 07921 408983 Toyota World Stuart Smith 07966 172397

Vauxhall Monorep - Vauxhall Andrew Ringer 020 8836 3031

Volkswagen Ridgeway Newbury Andy Jones 07917 635534

Volvo

CMY

Sturgess Volvo Scott Allen 0116 275 8800 scottallen@ sturgesscars.co.uk Buying used Volvos up to five years old

General Buyers Sol Cars Tim Hancock Wanting part exchanges of all types up to 4k 07973722243 timfoxhancock@btopen world.com Barry Freedman 01753 543105 07836 338694 barry.freedman@virgin.net Trade buyer of PX vehicles anything up to £8k Manor Hill Cars Danny Jay The best buyer in the UK for low mileage hatchbacks 01707 642 007 07931 317 007 danny@manorhillcars.co.uk

To have your details included here log on to CarDealerMagazine.co.uk/trader-directory.htm There’s also a more comprehensive list of traders on the website, updated throughout the month.

Prices for six month listings: £29.99 On Website | Or £39.99 for Magazine & Website Prices inclusive of VAT. Payments can be made online via credit or debit card. Your details will appear in the next available issue

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AutoquakeFullPage-final2.pdf 1 30/07/2010 10:50:10

Be part of London’s internet car buying revolution.

www.autoquake.com/jobs

CMY

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Recruiting Success in the Automotive Industry

$BS%FBMFS 1PXFS

Winner 2010 Recruitment

Open All Hours… John Gibson Associates – The UK’s leading Automotive Recruitment Consultancy. With a Head Office in York supporting a national network of Regional Offices, each run by experienced Motor Trade Professionals who know the local market inside and out; ensuring we are the only providers of national coverage on a local basis. Specialists in working confidentially; respecting the identities of all our clients and candidates meaning that there are no embarrassing situations. Every candidate we put forward is pre-interviewed so that we are certain that not only do we find exceptional candidates for the job but also for the business environment – we take pride in our reputation for expertise and an outstanding professional service. Every vacancy we handle is a genuine client requirement and every candidate we put forward has been contacted, giving their consent to be considered for a vacancy. We’ve been established for over 20 years. Our track record speaks for itself; we enjoy an 85% level of repeat business and place more candidates in more jobs than anyone in motor trade recruitment. All this means that John Gibson Associates are the recognised and trusted brand in Automotive Recruitment. And because we are confident that you will be more than satisfied with our client services - all this comes with a six month guarantee.

ormal working hours do not always apply in the Recruitment Industry - A good Consultancy will take the time to be available when the candidate or the client needs them. Often the most convenient times for a candidate or a client are before the start of the working day or for a few hours after. It will more often than not be easier and more convenient for them to talk openly without being distracted or having to be cautious about what they say and the environment they are in. It is imperative that clients and candidates consider their recruitment consultant as a confidant, someone who will do their utmost to ensure their best interests... After all, it’s your future that is being entrusted, whether its career progression, or the continued success of your business. A Recruiter has to have the highest level of honesty and integrity and be in regular contact to continually reassure all parties that everything is running smoothly and is being dealt with by professionals. Candidate and Client Service is just one of many important factors when considering representation

by a recruitment consultancy; whether it’s finding a new job or the staff needed to take your business forward. Their ability to react quickly to changing situations is equally as paramount – for example; rearranging interviews due to changing circumstances or alterations to a vacancy brief, client’s expectations or any other situation that may arise. The message that we continually strive to make is that recruitment is not a numbers game... it’s about finding the right people for the right job, those that fit into the business ethos and will make positive contributions to take a client’s business forward. It is equally important therefore to understand which direction a candidate wants to take their career and offering the best possible guidance to achieve their respective goals and the right steps to take them there. We at JGA are perfectly placed to offer these levels of service – we make them part of our core beliefs. Contact John Gibson Associates today and see how working alongside the Automotive Recruiter of the Year will benefit your future success.

JGA cover all positions in the Motor Trade and it’s related industries – below is a selection of the different vacancies currently being handled by our network of Regional Offices – visit www.jgauk.com to see a complete list of genuine client requirements and take the next step towards your future success. Job ID Job Title

Location

JGA Regional Office

14721 13184 14740 14752 14670 14743 14662 14748 14678 14750 14708

National Leicester Herts Lancashire Sheffield SE Postcode Plymouth North London Leeds Area Gloucester IP Postcode

East Anglia Head Office Thames Valley North West South & West Yorks South East Dorset, Hants, Cornwall London North East South Midlands Essex

Retail Sales Trainer Bodyshop Site Manager Inspector / Assessor Sales Controller Dealership Accountant Customer Appointment Cont Sales Executive Sales Controller - Dual Brand Workshop Controller Team Manager/Controller Prestige Technician

Tel: 0845 644 3003

THE LOCAL, REGIONAL, NATIONAL AUTOMOTIVE RECRUITERS

Web: www.jgauk.com Email: info@jgauk.com

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www.octanerecruitment.co.uk Fuelling the Industry Be it sales or aftersales, trainee or experienced, permanent or contract, retail or commercial vehicle we have the clients and the know-how to develop you as an individual and put on the right track to your ultimate career goal, Below is a brief description of the roles that we currently have available, however please do send in your CV even if you cannot see a role of interest as we are a very fast-moving organisation and we have an excellent portfolio of clients who could well be requiring your experience and skill sets. Please send your CV in the first instance to: info@octanerecruitment.co.uk Maintenance Controller - Manchester - to 24k with benefits Service Call Centre Executive - Bristol - 16k + bonus Workshop Controller - Bristol - Negotiable Parts Advisor - Westbury - 16/17k+ bonus Service Advisor - Birmingham - 20k OTE 30k Service manager - Banbury - 30/35k OTE 50k Technician - Bristol - 17k-19k + bonus Fleet Sales Executive - Wiltshire - 18k OTE 40k+ Qualified Mechanic - Guilford - to 28k plus bonus Branch Manager Parts - Birmingham - 30k + Benefits Parts Advisor - Salisbury - 16k + bonus Service Advisor - Lichfield - 16/17k OTE 21k Technician - Salisbury – Negotiable Sales Manager (LCV) – Bristol - 35k OTE 50k+ & benefits VAG Technician – South West - 18/21k + bonus Business Manager – Darlington – 17k OTE 40k Sales Executive – Crewe – 12k OTE 45k Technician – Crewe – 14/17k + bonus Local Bus Executive (Car-retail &fleet) – Salisbury – 15k OTE 40k Service Advisor – Crewe – 18k + bonus Sales Executive – Chester – 12k OTE 40k

Octane Recruitment The Triangle Exchange Square Manchester M4 3TR

0161 838 5700

Time to think about your next move

08450 212123

www.justcarjobs.co.uk CarDealerIss30.indd 77

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[ Jobs & classifieds ]

Want to advertise here? Call (023) 9252 2434

0844 243 5319

recruitment@autotorq.com

autotorq.com is Europe’s leading digital automotive web service provider. We deliver digital marketing services, web platforms, insights, training and support to the major manufacturers, dealer networks, dealer groups and individual dealers across the globe. We operate in over 50 countries and 24 languages and help our clients attract, convert and retain their customers through the digital channel, to increase their efficiency and profitability.

FBMFS $BS% EXCLUS IVE DEAL!

Car Dealer subscribers’ guide to the best offers from suppliers

FEATURING

IN ASSOCIATION WITH

All new subscribers to Car Dealer are sent a copy of our special Car Dealer Exclusive booklet free of charge

HAVE YOU SUBSCRIBED? If you like CarDealer.and want to keep receiving it you need to subscribe. Just because you’re getting it now doesn’t mean you always will UNLESS you’ve signed up...

£17.24

PER YEAR!

As we look to further strengthen our team in supporting growth across our business to help us achieve our goals with clients, we are currently recruiting for Account Managers, Account Executives, Senior Developers and Product Support Administrators, Project Managers, Analysts, Customer Support Administrators and individuals seeking to gain relevant work experience. Interested? Then send your CV with a covering letter, indicating current salary and availability to recruitment@autotorq.com or call 0844 243 5319. Closing Date: 31st August 2010.

WinITShowroom lead management TrackITDeal optimisation KeepITAwardorwinning CRM by luck e” “You can win choic y b n i w n a c u yo Call NOW 020 7538 6688 callmenow@winwinworld.co.uk www.winwinworld.co.uk

“Building the future the time is now”

Want to DRIVE TRAFFIC to your website? Find out more by calling

0845 2508820 or visiting www.ukwebsites.net

Email: support@ukwebsites.net

Part of

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[suppliers guide] IF YOU’RE LOOKING FOR A MOTOR TRADE SUPPLIER YOU CAN FIND THE DETAILS OF SELECTED COMPANIES HERE AUCTIONS Auction4Cars W: auction4cars.com

FEATURED ENTRY...

BCA T: 0845 600 6644 W: british-car-auctions.co.uk

Dealer-auction.com W: dealer-auction.com T: 0844 3350174 E: info@dealer-auction.com

Dealer Auction W: dealer-auction.com T: 0844 3350174 E: info@dealer-auction.com Info: The Uk’s fastest growing online trade auction. Franchised dealers can offer physical trade cars to over 1500 registered trade buyers nationwide.No monthly subscriptions, No Buying fees and No Sale No Fee makes us the most profitable option for franchised dealers wanting to maximise their dealerships trade car profit.

AUCTION CAR BUYING SERVICE AuctionCarBuyer.co.uk T: 07768 338585 W: auctioncarbuyer.co.uk E: joe@auctioncarbuyer. co.uk

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

FINANCE Bridford T: 0844 815 8888 W: Bridford.co.uk E: sales@bridford.co.uk Black Horse Motor Finance T: 02921 386 338 W: Blackhorse.co.uk E: michael.mcpartlin@ blackhorse.co.uk Info: Black Horse is the market leader for point of sale motor finance in the UK and has been supporting the industry for more than half a century. To find out what Black Horse can do for you contact us today. Car Finance Company T: 0800 023 2440 W: thecarfinance company.co.uk E: Via website Clements Car Credit T: 08444 142100 F: 08444 142200

W: aawarranty.co.uk E: paul.hanna@ aawarranty.co.uk Info: AA Warranty offers peace of mind to customers, with comprehensive cover for mechanical and electrical breakdown lasting up to three years. Full training is given to ensure you add value to your profile and profits. A range of Products are available, including mechanical breakdown, GAP, tyre, Key and MOT insurance. We provide telemarketing, data services and dealer finance.

DEALER AUCTION is the latest firm to be included in our not-tobe-missed guide. It’s the most affordable way to get your company in front of thousands of car dealers every month. Simply call the number above to find out how your company’s details could be included in next month’s issue!

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

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

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

ONLINE ADVERTISING Compucars T: 0845 667 6000 W: compucars.co.uk E: Via website Motors.co.uk T: 0845 265 5502 W: Motors.co.uk E: sales@motors.co.uk Really Good Domains T: 0161 482 7650 W: reallygooddomains.com E: sales@reallygood domains.com Skupenet T: 020 8610 6103 W: skupenet.com E: info@skupenet.com

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

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

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

TEXT SERVICES Any Text T: 0845 638 1421 W: anytext.co.uk E: info@anytext.co.uk Info: Established 1994, AnyText specialises in text SMS

services. Keep your customers informed by text from your PC. Send full vehicle details, including pictures. MOT reminders, service follow ups. Customer satisfaction surveys. Free account set-up. No minimum billing or monthly charges. Full, free support. Just buy bundles of texts as needed.

TRADE BODIES Motor Industry Code of Practice W: motorindustry codes.co.uk

WEB DESIGN

TRAINING Rapport Training T: 07793 612401 W: rapporttraining.co.uk E: rapporttraining @fsmail.net Info: Specialising in car finance and insurance sales training for managers, owners and sales executives. Our realistic and interactive approach to the learning experience helps increase both skills and profitability in these key business areas.

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

WARRANTY AA Warranty T: 08707 559 614

Warranty Management Services T: 01844 290536 W: warrantymanagement services.co.uk E: sales@warrantymanage mentservices.co.uk Info: Warranty Management Services offer a full range of unique products designed to increase profits. Bespoke programmes to suit your requirements and fit electronically into your sales process. With over 2,000 supporting dealerships throughout the UK, supported by 30 dedicated field managers delivering sales and FSA compliance training.

Autotorq.com T: 020 7384 8501 W: autotorq.com E: enquiries@autotorq.com CDWD T: 0844 880 1630 W: CarDealerWeb Design.co.uk E: info@cardealerweb design.co.uk Info: Fed up paying web designers to do a job you can do yourself? CDWD can help. We’ve collaborated with HPI to offer a unique product. Codeweavers T: 0870 443 0888 W: codeweavers.net E: enquiries@code weavers.net G-Forces T: 0845 055 9040 W: digitaldealership.co.uk E: info@gforces.co.uk

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used cars Bleak outlook won’t damage used car prices USED car prices will follow their usual patterns over the second half of 2010 despite the risks of falling demand. Glass’s says the trend set in the first half of 2010 will continue, even though the outlook’s on the bleak side – and despite steeper-thanaverage falls in May and June, monthly changes will only be marginally worse than they’ve been for the past five years. ‘Lacklustre consumer demand for used cars would be expected to impact on prices up to the end of 2010,’ said Adrian Rushmore, managing editor at Glass’s. ‘But ongoing low levels of newcar registrations are generating reduced volumes of part-exchange vehicles, leading to a shortage of used cars. ‘Even though the supply of used cars is likely to be lifted by the influx that accompanies the new September plate, the consequential fall in prices should be little different to that experienced in the years prior to 2008.’

Asian cars lead the way in reliability survey The most reliable used car in the UK is also the one with the longest new car warranty, reveals a new survey. The Kia Picanto has come out top in what Which? Car describes as ‘the UK’s largest reliability survey’. It has a reliability score of 98.1 per cent, half a per cent ahead of the next most reliable car, the Mazda3. Like all Kias, the Picanto now comes with a seven-year warranty – but it sounds like this will be little-used! The Consumers Association title also revealed the least reliable car in the UK. It says the Land Rover Discovery 3 came out bottom, with a reliability score of 67.8 per cent. Peter Vicary-Smith, chief executive, Which?, said: ‘You don’t expect a new car to go wrong – but our rigorous research shows there’s a big difference between the best and worst. ‘Some small cars, particularly Korean and Japanese superminis, run like clockwork. ‘Whereas some bigger cars, which you might expect to be more robust, aren’t all they’re cracked up to be.’ Which? rated reliability according to three criteria: Breakdowns, faults and niggles. The highest priority was given to breakdowns as these are the most inconvenient.

Kia’s Picanto tops the reliability charts Top 10

Bottom 10

1 Kia Picanto 2 Mazda3 3 Daihatsu Sirion 4 Honda Insight 5 Honda Jazz 6 Toyota IQ 7 Toyota Prius 8 Volkswagen Golf Plus 9 Mercedes-Benz SLK 10 Mazda2

1 Land Rover Discovery 3 2 BMW 3 Series Convertible 3 Hyundai Santa Fe 4 Renault Megane CC 5 Range Rover Sport 6 Volkswagen Eos 7 Jaguar S-Type 8 Ford Focus CC 9 Citroen C4 Grand Picasso 10= Ford S-Max/Volvo S80

The most searched for cars in July on... Compucars

Motoring.co.uk

Motoring.co.uk (bodystyle)

ContractHireAndLeasing.com

1 BMW

3 Series

1 Renault

Clio

1 Hatchback

1 Mercedes

2 Mercedes

C Class

2 Mazda

2 4x4

2 Volkswagen Golf

3 Ford

Focus

3 Volkswagen Polo

3 Supermini

3 Volkswagen Scirocco

4 Honda

Civic

4 Volkswagen Golf

4 Convertible

4 Audi

5 Vauxhall

Astra

5 Ford

Fiesta

5 MPV

5 Nissan

Qashqai

6 VW

Golf

6 Citroen

6 Saloon

6 Land Rover Range Rover Sport

7 BMW

5 Series

7 Mazda

7 Estate

7 BMW

8 Audi

8 Mercedes

SLK

8 Coupe

8 Volkswagen Touareg

9 Ford

Fiesta

9 Audi

9 Green

9 BMW

5-Series Saloon

10 BMW

1 Series

10 Audi

TT Coupe

sh a fre h to a o r c app nance car fi

C-Class Saloon

3-Series Saloon

Need a new finance provider? hpi finance gateway A fresh approach to car finance

Talk to us today on 0845 301 1811

HPI is authorised and regulated by the Financial Services Authority in respect of insurance mediation activities. Ref 502487. Calls will be charged at local rate and may be recorded and/or monitored. HPI and the HPI logo are registered trademarks of HPI Limited. HPI is a Solera company. E&OE: HPI pursues a policy of continuous product development. The Tree design is a registered trademark of Julius Sämann Ltd., and is used with permission. CD_FG_04.10

80 | CarDealerMag.co.uk

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...in association with HPI

Sales dip for the first time in a year S MMT July new car sales show a big FALL for the first time in a year with registrations down more than 13 per cent. Figures released by the SMMT reveal the market declined 13.2 per cent in July 2010 – although the year-to-date total is still up 15.1 per cent. Further falls are expected over the rest of the

year, warns SMMT chief exec Paul Everitt. A rest-ofyear decline of 15 percent is predicted. The SMMT did admit, though, ‘the outlook is difficult to predict due to uncertainty over the state of the economy, impact of VAT changes, levels of pent-up business demand and manufacturers’ ability to build on the past growth momentum’.

Despite this, the overall 2010 new car market is still expected to be up on 2009, with 2.018m car sales representing a 1.2 per cent increase. The end of the Government-backed scrappage scheme is blamed for the fall. The Ford Fiesta regained the top slot as overall UK best seller in July.

SMMT sales data July / year to date

Figures supplied by SMMT

July Marque

Abarth Alfa Romeo Aston Martin Audi Bentley BMW Cadillac Chevrolet Chrysler Citroen Corvette Daihatsu Daimler Dodge Fiat Ford Honda Hummer Hyundai Infiniti Jaguar Jeep Kia Land Rover Lexus Lotus Mazda Mercedes-Benz MG MINI Mitsubishi Nissan Opel Perodua Peugeot Porsche Proton Renault Saab SEAT Skoda smart Ssangyong Subaru Suzuki Toyota Vauxhall Volkswagen Volvo Other British Other Imports Total

sh a fre h to a o r c app nance car fi

2010

124 515 124 6,187 111 8,246 0 775 68 5,402 0 6 0 58 3,576 18,442 3,745 0 3,134 23 1,383 71 3,538 2,453 400 63 2,814 5,289 28 2,234 528 7,221 0 53 7,709 896 54 5,881 356 2,563 3,059 559 27 121 866 5,762 16,680 12,558 2,520 87 137 136,446

Year to date (YTD)

% market share

2009

0.09 0.38 0.09 4.53 0.08 6.04 0.00 0.57 0.05 3.96 0.00 0.00 0.00 0.04 2.62 13.52 2.74 0.00 2.30 0.02 1.01 0.05 2.59 1.80 0.29 0.05 2.06 3.88 0.02 1.64 0.39 5.29 0.00 0.04 5.65 0.66 0.04 4.31 0.26 1.88 2.24 0.41 0.02 0.09 0.63 4.22 12.22 9.20 1.85 0.06 0.10

90 901 119 7,042 97 7,294 30 2,321 213 5,664 2 264 3 276 5,216 24,679 5,583 1 6,011 0 1,218 96 3,719 1,582 559 31 2,829 4,870 54 2,816 1,157 7,365 0 45 8,173 611 82 5,150 424 2,387 2,943 697 99 217 2,135 7,547 18,604 13,282 2,362 126 163 157,149

% market share

0.06 0.57 0.08 4.48 0.06 4.64 0.02 1.48 0.14 3.60 0.00 0.17 0.00 0.18 3.32 15.70 3.55 0.00 3.83 0.00 0.78 0.06 2.37 1.01 0.36 0.02 1.80 3.10 0.03 1.79 0.74 4.69 0.00 0.03 5.20 0.39 0.05 3.28 0.27 1.52 1.87 0.44 0.06 0.14 1.36 4.80 11.84 8.45 1.50 0.08 0.10

2010

%market share

2009

%market share

859 4,351 665 62,677 640 59,551 20 8,722 867 43,290 2 133 2 508 33,448 176,792 38,667 1 41,881 78 9,925 1,199 37,802 24,479 3,993 338 27,687 42,908 209 24,500 6,869 52,744 0 507 67,448 4,226 514 58,607 2,873 19,880 25,779 4,706 201 2,383 12,542 55,089 150,141 108,644 24,278 717 766 1,245,108

0.07 0.35 0.05 5.03 0.05 4.78 0.00 0.70 0.07 3.48 0.00 0.01 0.00 0.04 2.69 14.20 3.11 0.00 3.36 0.01 0.80 0.10 3.04 1.97 0.32 0.03 2.22 3.45 0.02 1.97 0.55 4.24 0.00 0.04 5.42 0.34 0.04 4.71 0.23 1.60 2.07 0.38 0.02 0.19 1.01 4.42 12.06 8.73 1.95 0.06 0.06

702 4,813 742 53,972 514 51,040 94 11,110 1,273 36,963 34 1,666 17 1,233 27,556 183,769 44,030 43 25,810 0 10,336 1,207 22,783 14,974 4,311 280 23,320 39,415 184 20,238 5,928 38,607 0 315 57,246 3,355 572 29,142 5,528 16,042 17,908 4,573 462 1,807 16,208 54,806 140,617 88,735 16,465 576 783 1,082,104

0.06 0.44 0.07 4.99 0.05 4.72 0.01 1.03 0.12 3.42 0.00 0.15 0.00 0.11 2.55 16.98 4.07 0.00 2.39 0.00 0.96 0.11 2.11 1.38 0.40 0.03 2.16 3.64 0.02 1.87 0.55 3.57 0.00 0.03 5.29 0.31 0.05 2.69 0.51 1.48 1.65 0.42 0.04 0.17 1.50 5.06 12.99 8.20 1.52 0.05 0.07

% Change

37.78 -42.84 4.20 -12.14 14.43 13.05 -100.00 -66.61 -68.08 -4.63 -100.00 -97.73 -100.00 -78.99 -31.44 -25.27 -32.92 -100.00 -47.86 0.00 13.55 -26.04 -4.87 55.06 -28.44 103.23 -0.53 8.60 -48.15 -20.67 -54.36 -1.96 0.00 17.78 -5.68 46.64 -34.15 14.19 -16.04 7.37 3.94 -19.80 -72.73 -44.24 -59.44 -23.65 -10.34 -5.45 6.69 -30.95 -15.95 -13.17

% Change

22.36 -9.60 -10.38 16.13 24.51 16.68 -78.72 -21.49 -31.89 17.12 -94.12 -92.02 -88.24 -58.80 21.38 -3.80 -12.18 -97.67 62.27 0.00 -3.98 -0.66 65.92 63.48 -7.38 20.71 18.73 8.86 13.59 21.06 15.87 36.62 0.00 60.95 17.82 25.96 -10.14 101.11 -48.03 23.92 43.95 2.91 -56.49 31.88 -22.62 0.52 6.77 22.44 47.45 24.48 -2.17 15.06

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tail light

Sub-Prime Time G

eneral Motors announced recently that it was buying AmeriCredit Inc, a US sub-prime (or nonstandard) car finance lender to help boost its flagging car sales. In the US around 40 per cent of potential customers have below prime credit ratings and dealers and GM executives have complained for months that they’re losing business because many customers can’t get loans. GM’s chief financial officer Chris Liddell said: ‘Clearly there’s an opportunity to bring more people into our showrooms and help them with finance.’ The US is a bit ahead of us in terms of their economic cycle and today in the UK the percentage of customers unable to get prime finance has risen in recent years but is still below 30 per cent at this time. However this percentage continues to rise and it won’t be long before one-in-three potential car buyers will be unable to source prime finance. So we’re not quite in the same situation as in the US; at least not yet. GM has woken up to the opportunity in the nonstandard market but they’re not the only ones. Perhaps not surprisingly as one of very few non-standard lenders still actively operating in the motor finance market we’re receiving more and more interest from new dealers who are beginning to also recognise the opportunities ahead and want to prepare for and service this growing market. So, we’re currently reviewing how best we can work more closely with our dealer partners to ensure they are ready and able to target this market. If a dealer wants to service this non-standard population they’ll need to make these customers feel comfortable in the way they are being dealt with and confident that they can still buy one of their cars, and for this reason non-standard customers head to small to medium-sized dealers. Of course they’ll have to carry stock that’s appropriate to these customers but their

‘The percentage of customers unable to get prime finance has risen in recent years... it won’t be long before one-inthree potential car buyers will be unable to source prime finance’ attitude towards them will make all the difference. My advice would be to work closely and directly with a non-standard finance provider, like First Response, which specialises in this type of lending and has the skills and experience to overcome the customer’s frustrations and concerns, as these customers need to be handled correctly. Dealers should be prepared to downsell the customer to a cheaper car if the lender isn’t able to offer the customer an advance in line with their initial expectations and this is happening quite a lot at this time as more and more customers realise that it isn’t easy getting prime finance and big advances. Of course the lender should be able to manage this situation and should also inform the dealer, before the customer, that this is the situation, so that the dealer is well prepared. There are quite a few dealers that have already started to think about servicing this market, and if you’re thinking about building sales strategies that include a third of the population we’d be happy to help.

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

CarDealer.

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Thanks to... Chris Jervis, Mike Askew, Linda Baggott, Terry Hogan, Simon Evans, Tim Naylor, Martin Hill, John Slavin, Dean Smith, James Batchelor and Matt Richardson

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

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0115 946 6370

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

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