Car Dealer Magazine: Issue 38 by Blackball Media

Boss tim Abbott on key car for dealers p38

NISSAN LEAF

Ground-breaking electric car hits UK roads p42

le ga la dv

DE Al CA ice E r fo r rm C em l be U rs B P2

BMW 6 SERIES

Issue 38 | May 2011 | CarDealerMag.co.uk | £3.50

AnAlYsis

tEsCO: WHY WE’rE nOW sEllinG CArs p11

GReAT PlUs

The Chinese are COMing... CAr DEAlEr has The sTOrY On The Year’s Big laUnCh p48

eXpeCTATIOnS

FinAnCE sPECiAl WhY 2011 isn’T all BaD neWs p60 CarDealerIss38.indd 1

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BLACKBALL MEDIA 2A CHUrCH rOAD GOSPOrT, HAnTS PO12 2LB T: (023) 9252 2434 W: CarDealerMag.co.uk EDITOrIAL DIrECTOr James Baggott james@blackballmedia.co.uk Twitter: @CarDealerEd STAFF WrITEr James Batchelor james.batchelor@blackballmedia.co.uk Twitter: @JRRBatchelor ADVErTISInG MAnAGEr Duncan Chappell duncan@blackballmedia.co.uk Twitter: @CarDealerAds ADVErTISInG EXECUTIVE Jade Simmonds jade@blackballmedia.co.uk Twitter: @CarDealerJade

Contributors Graeme Windell, Dean Smith, Mike Askew, Mike Jones, Big Mike, Alex Goy and James Litton

IGnITIOn.

and is quite a story. We were given exclusive first drives of NOT very often you WelCOMe. IT’S experience something truly the two cars that will lead the charge – the first time I’d different – but this month I’ve been lucky enough to be treated to more than one unusual experience. The first involved the revolutionary Nissan Leaf, a shopping centre and some rather perplexed grannies. Let me explain. Nissan managed to persuade the management of Milton Keynes’ mk:centre to let them hold the press launch inside. This involved a lot of taped off areas and no less than 40 ‘health and safety executives’ to stop mums determined to get to Boots crossing the paths of a silent Leaf. Us hacks got to drive the Leaf out of the centre, past the shop fronts and squeeze it through one of the pedestrian exits – this was of course only allowed as the car emits no emissions. It really was quite an experience, as was driving my first electric car. Overall I found it very impressive, but am still unsure as to how many buyers are out there... The second unusual moment happened on the outskirts of Birmingham at IM Group’s headquarters. There, the Car Dealer team got the exclusive inside line on a new manufacturer poised to enter the UK market for the first time. Chinese brand Great Wall’s entry is spearheaded by former Daihatsu top man Paul Hegarty

ever experienced a Chinese car. Fortunately I can report it was quite a pleasant surprise. TeSCO mOVe NOW, I’m not one to say I told you so, but, well actually I am – I TOLD YOU SO! We’ve been covering Tesco’s move into the used car market since February and now you can read in this issue all about how the supermarket has launched an online-only sales website in partnership with Carsite, just as we predicted it would. If you’re an avid user of our website, CarDealerMag.co.uk, you’ll know we’ve been covering the story extensively in between issues so you’ve been kept up-to-date with every move the conglomerate has made. Now we’ve had the chance to digest the news, find out the trade’s reaction to it and quiz the people behind the launch – you can read the full story on p11.

James Baggott, Editor

Thanks to... Chris Jervis, Linda Baggott, Simon Evans, Tim Naylor, Tim Smith Martin Hill, Tim Heavisides, Richard Hoggart and Don Brough,

Subscriptions £24.99 per year (UK) £39 (EU) £49 (rest of the world) You can pay by credit or debit card on our website – visit bit. ly/dealerclub – or send us a cheque to the address above made payable to ‘Blackball Media Ltd’. Subscriptions include membership to Car Dealer Club. Members get free legal advice worth £199 a year as well as access to a host of discounts from key motor trader suppliers.

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Now there is a used car warranty company that says yes How, you might ask? The WMS Group are launching a new initiative to recognise the ‘best of the best’ in UK used car dealerships with the Safe and Sound programme. Based on our ‘YES’ used car warranty product, we are focusing entirely on customer satisfaction - providing a product that takes away the fears, confusion and complexities currently out there for customers wishing to safeguard their cars against unforeseen mechanical and electrical failures. Simply, we say YES to warranty holders when they buy a car from our approved dealership network - and include wear and tear claims (terms & conditions apply*). We will also continue to pay all authorised claims within 24 hours. To be a part of this new generation of dealership network and learn more about it, please call Eric Stone on 07789 682502

The WMS Group, Thame House, Thame Road, Haddenham, Bucks, HP17 8HU

sales@safeandsoundcars.com www.safeandsoundcars.com *Ultimate warranty applies to vehicles up to 6 years and 60,000 miles at the time of purchase that have not exceeded 85,000 miles at the time of claim. The policy does not cover negligence i.e. insufficient oil or water, overheating or failure to ensure that minimum damage is incurred by taking preventative measures. A support product is available for vehicles that have exceeded 6 years and 60,000 miles at the time of vehicle purchase.

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Join Car Dealer Club by visiting CarDealerClub.com Members get free legal advice worth £199 for a £25 annual subscription

InSIDe.

COVeR STORY

low down on Great Wall’s entry into the UK marketplace

issUe 38 i May 2011

DAsHBOArD 07

Feedback

WeBuyAnyCar.com investigated 09

38 59

MAnuAl

BMW 6 series Convertible

feATuRe

Why Audi’s so successful

MAnuAl

nissan leaf tested

‘‘

We believe that Tesco Cars offers the best solution for customers

tesco’s used car launch

leXuS CT 200h

Marque’s vital new model

Tesco launches used car sales

Autoquake goes bust

Scheme a sales success

Japan earthquake: Crisis looms

Honda MD promises more hybrids 19 BMW M cars are changing

Around the World

My First Sale

Car Dealer Club’s latest signing

Helpdesk with Car Dealer Club

More of Google’s top tips

Finance

Interview: Paul Tanner

Big Mike

FOrECOUrt BMW 6 Series Convertible

Volvo XC90

nissan Leaf

Lexus CT 200h

Skoda Superb Greenline

Hyundai ix20

renault Clio Gordini

Volkswagen Touran

FEAtUrEs Great Wall special

911 for 2011

Audi: The success story

Finance Showcase

DAtA FilE

A MOnTH In pICTuReS...

March saw us head to Birmingham for our exclusive first drives at great Wall. it was all going so well until Batch parked one like this. We made him try again. And again. We also headed to Milton Keynes to be treated in the Leaf clinic. See what they did there? No, we didn’t either... but it was fun all the same.

right Click

Auctions

SMMT Sales Figures

Suppliers Guide with Alex goy

Trader Directory with James Litton 76 Shares

78 CarDealerMag.co.uk | 05

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ARE YOU MISSING A VITAL COMPONENT? FIND OUT WHY WE WORK WITH 60% OF THE UK’S DEALERS.

Everyone wants to boost their business performance, and choosing the right warranty provider can do just that. At Car Care Plan we know how important it is to keep your customers’ trust which is why we pay all valid claims with our no-quibble policy. It’s service like this which means we now work with over 60% of the UK’s dealers and have more than a million customers across Europe. And it’s why we’ve been voted the UK’s no.1 warranty provider*. To see what we can do for you call 0844 573 7591 or visit www.carcareplan.co.uk

*Voted Car Dealer Power Winner 2010, Warranties. Car Care Plan Limited is authorised and regulated by the Financial Services Authority.

CarDealerIss38.indd 6 104035 CarCare_CarDealer 17_03_11.indd 1

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11:08 AM

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

Autoquake’s demise Link: bit.ly/halpinautoquake Interesting piece and 10/10 for Dermot for setting the record straight. It’s easy to feel righteous in situations like this but they dared to be different, shook up the market and nearly made it work I know as a Car Dealer Ewards judge they were always held in high regard for their online presence. Sorry to see them go. rob Queen, via cardealermag.co.uk

ofT against WeBuyanycar

Link: bit.ly/ofTwebuy I run an independent dealership of around 60 cars. I bet if you spoke to all of my customers, you would find that 96 per cent of them are/were unhappy with their part exchange price too. If not 100 per cent! When has a customer EVER been quoted/ given a price for the car and jumped up and down with happiness? Never....! If they want retail price for their car, sell it direct to someone. We are all in this to make a living, I don’t condone what WeBuyAnyCar does (probably because I didn’t come up with the idea first) and know that they do (usually) end up nowhere near what they quote, but does any dealer give retail money for a part ex? Customers need to sell their car quick, they

tWittEr COMMEnts

Talking Tesco’s entry into the used car market Tesco world domination marches on Via @car211 Could drag dealer attitudes into at least the 90’s if not up to current day Via @vardra i assume you’ll get a whole heap of clubcard points too? Via @ratonedge Fantastic, Tesco strike again. £43.88 for an MOT? Bit steep! and at near 72 quid for oil and filter it best be gold plated Via @matt_Waxdaddy if the model was so good aQ would have get a price, they don’t HAVE to accept it.... It’s not like they’re telling them to put all their gold in an envelope and send it off in the post! carl chambers, via cardealermag.co.uk A fancy TV ad campaign (well, annoying any, any,

survived

Via @internetcarlot

Dealers should up their game in terms of customer service and retention, also have huge historical sales data and need to use it Via @chriscarsgreen They got 87 pages of testimonials quite quickly then in one day of trading?! Via @countrymanvehic Tesco will so make a mess of it Via @pas7272 Tesco, the full story, p11 anyway) does not cover up the fact that they have just hit the motor trade where and when it hurts. Although, thinking about it, they may have done us REAL dealers a favour. Who is going to trust them now? sean cleverly, via cardealermag.co.uk

MY COnFEssiOn

lesson 101: Don’t leave a car running... i WOrK at a large vW franchise. it is situated on a large retail park, surrounded by other dealers. One quiet Thursday morning i was preparing an ex-demo golf for a test drive. My customers were due in the showroom at about midday, so i set about getting it ready half an hour before. it had been on the forecourt for about a month so needed a jump start. i got the jump pack, and started the car. it was quiet in the motor park, so i left the car running while i

went back into the showroom to sort out the paperwork and CrF form. about 20 minutes later, my customers turned up ready for a drive. i quickly sorted out the insurance and took a copy of their driving licence. as i got back to my desk, i saw the black golf tear out of the forecourt entrance in a cloud of tyre smoke. i instantly knew it had been nicked. The customers watched me as i slowly came to terms with what had happened. i ran to

the boss’s office, shouting ‘it’s gone, it’s gone!’ Telling my boss the car had just been nicked was the most humiliating thing i’ve had to do in 25 years of car sales. he called the police and reported it, and i went back to my desk. What could i do apart from explain that i would find another one for the customers? at least the car was used for something other than spares – it was later used in an armed robbery! PW, Lancashire

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the solution. Especially if you’re looking to brand new building, which they will make minimise your capital outlay. for from just 250sq ft to 25000sq ft. The firm, Smart-Space will create all Free Information And Quick Quote. the space you need with none of the usual Go to www.smart-space.co.uk/motors delays you get with building because with to see their range of ‘instant’ buildings, or their range of ‘instant’ buildings, they do call 01827 330000 for a courteous prompt not lay a single brick! reply, and to get a no-obligation ‘quick’ As long as you have a level hard standing quote, or to arrange to view their display “The ‘Instant’ Building System Which Costs A Fraction surface, there is no ground preparation buildings without obligation . Of Building And Extending - In A Fraction Of The Time” required either.

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GET SOCIAL . GET REWARDING . GET LOYALTY . BE LOVED FOR THE NEXT GENERATION LOYALTY SCHEME VISIT W W W. I L O V E M Y D E A L E R . C O . U K

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DASHBOARD.

Original vW Beetle with just 47 miles sells at auction bit.ly/tastybeetle

WeBuyAnyCar.com Martin Hill investigated by OFT from dealer’s rap for ‘misleading public’ Learn from trading standards

neT gains

Buyers sometimes offered hundreds less than website promised them

he OFT has taken enforcement action against WeBuyAnyCar. com over misleading valuation concerns. An OFT investigation found that nearly 96 per cent of customers who sold their car to the used car buying company received less than the original website valuation – sometimes by hundreds of pounds. Consumers were given the impression that they would be paid the online valuation if the company’s onsite inspection matched the condition entered by the seller online. But, once at the appointment, some customers found that other factors reduced the final price from the headline valuation, including ‘market conditions’. The OFT also found that vehicle inspectors were set targets regarding the purchase of vehicles, sometimes to reduce the valuation offered by up to 25 per cent, upon reappraisal. Moreover, sellers were given the impression that the online quote was valid for seven days, so were encouraged to make an appointment quickly. The OFT was concerned that, once at the firm’s premises, consumers might accept a reduced valuation, even if they were unhappy with it, because of the time and expense already incurred, or because their circumstances dictated a quick sale. The OFT has pointed out the company fully cooperated with its investigation. While the company and its directors believe that their business practices complied with

CAr DEAlEr POWEr

WeBuyAnyCar.com has been investigated by the OFt the law, they have agreed to make changes in light of the OFT’s investigation. Richard Harrison, chief operating officer of WeBuyAnyCar.com, said: ‘We’ve implemented a huge amount of changes over the past 12 months to improve our customer experience, and the feedback from the OFT has helped to shape some of the changes we’ve made. ‘Today, sellers come to us because we offer a valuable alternative to part exchange or private sale, a fast, safe and fair way to unlock the real value of their car. ‘As a young and dynamic business, we’ve grown very quickly to become the largest buyer of second-hand cars and offer the nation a third way to sell their car. ‘As the largest business in the market, we take our responsibility as customer champion incredibly seriously which is why we’ve invested so much in improving our online valuation tool, tightening up our procedures, investing in training and asking our customers how we can improve our service. ‘In the early days we didn’t get it right for every customer, but that was a long time ago.’

Fill in the survey now!

sOMe car manufacturers could be in for a nasty shock if our preliminary Car Dealer Power results are anything to go by. hundreds of dealers have been extremely vocal in our survey, which aims to find the best manufacturer to represent as well as the best suppliers to do business with. if you haven’t taken the time to fill in the survey, there’s still time to let those you do business with know exactly what you think of them.

The only way to do that is if you log on to our survey and let us know your thoughts. The survey can be found at CarDealerPower.com and takes just a few minutes to fill out. The survey is totally anonymous – all we ask is that you include your mobile telephone number. The Car Dealer Power survey closes on May 28 and we’ll be holding our awards ceremony on July 20 (note the changed date).

n last month’s issue I outlined the main changes to how consumer finance advertisements needed to be displayed on your website. You may recall that these new rules saw the end of the familiar ‘typical APR’ measure, and replaced this with the introduction of a new ‘representative example’. I invited readers to contact me directly and I’m glad to say that several of you did. The questions you all asked related to the display of credit advertisements on websites, with some of you expressing particular concern about ensuring compliance with the new rules. I happily provided guidance and ultimately gave the same advice to everyone – as the rules only came into force on February 1, unfortunately there have been no test cases or precedents at the moment. I also mentioned that although this lack of clarity is unhelpful, it wouldn’t be long before the regulator starts to actively police the new regime. That process appears to have started. A large used car dealer group has informed me that Trading Standards Officers have recently approached him following a complaint from a consumer regarding the relatively innocuous ‘offence’ of having the spec of a car on their website not as 100 per cent described. Trading Standards officers went on to examine several aspects of the dealer’s website. This included looking at the finance calculators and finance examples (which before you ask were NOT provided by Codeweavers!). The outcome? The dealer was instructed to remove the examples from the website with immediate effect. The dealer has also been informed that the regulator will be commencing formal court proceedings in this regard. What the outcome of the case will be is anyone’s guess. However, one thing seems likely. The regulator has plenty of people on the ground to police these rules, and they will be looking to examine a dealer’s web advertising as well as print. To reiterate one of my main points from last month, there is no transition or grace period – the rules apply now. The good news? My background is in legal and I’m still happy to help. Email me at martin.hill@codeweavers.net.

‘Trading Standards went on to examine several aspects of the dealer’s website.’

Who is Martin Hill?

Martin is commercial director at Codeweavers. learn more about how he can help you at Codeweavers.net or call 0800 021 0888. CarDealerMag.co.uk | 09

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DASHBOARD.

What Car? signs deal with Motoring.co.uk bit.ly/whatmotoring

Tesco to sell used cars The man behind Tesco’s entry into the used car market tells Car Dealer what attracted the supermarket to the sector

Dealers should up their game in terms of customer service and retention. They have huge historical sales data and need to use it. Customer feedback about Carsite was they didn’t buy because they couldn’t part-exchange their car. Chris Green, sales director

Glass’s

upermarket giant Tesco has launched a used car sales website as Car Dealer Magazine predicted – and the team behind it has said it is not trying to put dealers out of business. Tesco rebranded Carsite’s existing website at the start of April as its own and is now offering buyers the chance to reserve their choice of car online with a £99 deposit. Once they’ve chosen, Tesco organises a 167-point RAC report, which includes a video and picture gallery. If the customer is happy they can collect it or have it delivered to their home for just £149. Tesco even offers buyers the chance to return cars they are not happy with, however it won’t accept part exchanges or allow test drives. By not selling at physical locations Tesco is able to sell for less. A VW Touareg on a 58-plate with 18k miles was priced at £25,250 on the Tesco website – similar models with more miles were on sale at the same time for around £750 more on Auto Trader. The trade has reacted with understandable suspicion to the move. When we revealed the news on our website our Twitter feed was flooded with ‘they’re taking over the world’ remarks with many wanting to know why the supermarket ‘was targeting dealers’. Daksh Gupta, chief executive of Marshall Motor Group, said: ‘You will get 2,000 club card points which I think is worth £20? Reading the terms and conditions, Tesco are not the seller they are agents on behalf of fleets. And there are no test drives. Would you buy a used car without test driving?’ Tesco has taken an equity stake in Carsite with an option to purchase the business if all goes well. At the same time the supermarket rolled out Tesco Autocentres, a business that will service cars too. Andrew Higginson, CEO of retailing services at Tesco, is the man behind the move. In an exclusive interview with Car Dealer he said he was confident the Tesco brand would not put buyers off. ‘As one of the most trusted organisations in the UK, Tesco Cars has been created to correct an overtly negative public impression of the used car industry among a significant number of consumers,’ he said. But why has the supermarket targeted the used car market, especially as similar businesses such as Virgin Cars got their fingers severely burnt? ‘It is important to remember that the Tesco Cars business model has been successfully operational for the past five years in the guise of Carsite,’ said Higginson. ‘Tesco has recognised three principal consumer concerns when buying a used car: Trust, value and service. Currently, the online used car

Motoring

This is a brave step for Tesco, but a positive one for the industry, providing an established benchmark against which to be measured. However, the current approach somewhat undermines the transparency of the customer offer by selling virtual stock via pre-order. Overall volume potential will be limited due to the lack of facilities for test drives and part-exchanges. Andy Carroll, MD

Motors Tesco will used cars at big discounts online

market is expanding rapidly but it is still small. We’ve spent the last 18 months planning our entry and creating a buying process that protects the consumer, and keeps them firmly in charge throughout.’ So is he trying to put traditional used car dealers out of business? ‘No, absolutely not,’ he states. ‘There has been a lot of market hype on what a new entrant like Tesco will do to the market place but at the moment approximately 70 per cent of customers opt for the traditional forecourt method of buying a car. ‘As a result, some consumers will always want physical dealers to “kick the wheels”. However, online sales may grow over the coming years but it will not change the model we know overnight. The used car sector will continue to evolve as it always has done and maybe Tesco Cars will be one of those leading the way. ‘Our prices will be lower than high street retailers, where showroom costs and commissions might add to a car’s sale price. However, Tesco Cars is not directly looking to undercut other retailers of used cars – pricing is by virtue of the business model.’ Higginson says he believes the Tesco Cars approach of no ‘hard sells’ or salesman on commission will give buyers ‘peace of mind’. He added: ‘Car sales – like any other retail sector – is in a constant state of evolution. The traditional model has already been changed by the advent of car supermarkets, manufacturers selling direct to the public and, of course, the internet. ‘We believe that Tesco Cars offers the best solution for customers who may be intimidated by the traditional process of buying a used car.’

Tesco’s entry demonstrates my belief that consumers want to search and browse for cars online. Their business plan will be well researched and planned and I suspect them to be able to provide consumers with more confidence to buy online. Dealers should respond by making offline and online complement each other. Garry Hobson, CEO

HYUNDAI A growing number of customers are choosing their used cars via the web. However, research shows that few of them know exactly what they want until they see a specific car and most will want to drive them. The Tesco business model does not facilitate either of these as they do not hold any cars. Tony Whitehorn, MD

KIA Given an approved Kia comes with the seven-year warranty topped up to its original level we are not sure why anyone would want to pay a fixed-price for a car they can’t touch or test-drive and with just a one-month guarantee. But we welcome competition – it makes our dealers look even better! Stephen Kitson, director

What do you think? Get in touch and tell us (p7)

CarDealerMag.co.uk | 11

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MyCarl

DASHBOARD. sErViCE

Hyundai’s free loan cars

hYUnDai has seen such demand for its ix35 it’s had to offer alternative cars to UK buyers due to delays. The firm says demand for the ix35 has been ‘unprecedented’ resulting in long waiting lists for the 2.0-litre diesel model in particular. To keep the 200 longest waiting customers happy, hyundai is offering the 1.7-litre diesel model to them as a loan.

CHAritY

Dealers pimp their cars

Dealers have helped Kia Motors UK raise more than £29k for Comic relief through a special sale of ‘pimped up’ motors. an impressive 28 Kia dealers ‘pimped up’ 31 old trade-in vehicles into something hot enough to be auctioned for charity, and in the process helped raise a final sum of £29,625.

rEliABlE

Peugeot tops charts

WarranTY Direct has revealed that the UK’s most reliable car is not german, nor Japanese – it’s the Peugeot 207. The company analysed more than 20,000 live policies on cars aged between three to seven years and found that only one in 17 207s break down.

Only a few places left on this year’s Bangers4Ben... bit.ly/cometoitaly

Autoquake boss explains why online retailer went bust F

ormer Autoquake CEO Dermot Halpin has spoken out about how the online retailer went into administration last month. Speaking at an exclusive Google conference, which he’d been booked to appear at months before his firm went bust, Halpin said the cause of Autoquake’s demise was not due to the internet or the business model – he said Autoquake went under simply due to a ‘financing issue’. Autoquake – which sold used cars online – was placed in administration in March with Matthew Bond and Jason Godefroy of MCR appointed joint administrators. A statement on the website read: ‘If you are a customer or supplier of the company and have any queries, please direct these to the company’s call centre on 0844 800 9406, in the first instance. If you are interested in purchasing any of the assets of the company, including the company’s domain name and e-commerce, please contact MCR.’ It is understood there are currently two serious bidders for the assests at present, but no further information has been released. At the Google event, Halpin praised his team and the business model Autoquake initially set out on, but explained that expensive paid-for searches, low acquisition costs and a lost deal resulted in the company

CEO speaks out after website forced to call in the administrators calling in the administrators. ‘We came into the market and punched totally above our weight online,’ explained Halpin. ‘That’s because of the way we approached customer acquisition. It was entirely online, we bought demand in line with inventory, we had acquisition costs of around £90 per vehicle which compared to around £300 per vehicle from our competitors. ‘This caught us out as we grew very quickly from this. Growing quickly and the economics of paid search meant that because we wanted incremental traffic, we didn’t pay incrementally, we paid on all of the traffic. So very quickly it became a very expensive exercise to get more reach in a hurry. ‘The advice I would give,’ added Halpin, ‘is that you should make sure you diversify how you access different pools of demand. So you still need TV, off-line media, and

‘‘

Dermot Halpin picks up his Car Dealer Eward from editor James Baggott (complete with dodgy tache)

you definitely need online integrated into your marketing campaign.’ What ultimately caught Autoquake out though was a deal that did not go through. ‘We were negotiating two deals. One buying something and the other was that we were merging with something. We were hedging our bets and that can fall apart very quickly. ‘One of the deals fell apart and the financier said that the risk of giving us the bridging loan was too high so we didn’t get it. Game over.’ Halpin joked that Autoquake obviously did something right before it went bust though. ‘Just as we were sending out the administration notice, we were notified by Hitwise that we had won an award – we were in the top five for online in 2010.’ Autoquake’s excellent website picked up one of our Ewards in 2010 with judges praising its excellent search and usability – looks like someone will bag a bargain from the administrators...

The risk of giving us the bridging loan was too high so we didn’t get it. Game over.

More buyers than ever concerned about their car’s emissions A NEW survey by HPI has revealed the growing importance of CO2 emissions on consumers’ buying decisions. The survey of UK car dealers shows a 52 per cent increase of dealers confirming that CO2 emissions influenced customers’ decisions in 2010, compared to 2007.

In 2010, 71 per cent of dealers confirmed that emissions did influence the purchasing decision of car buyers, compared to 45 per cent in 2007. In addition, the survey revealed that in 2010, 59 per cent of dealers reported that customers asked about emissions for the vehicle they were

buying – this compared to 44 per cent of dealers saying the same in 2007, a 34 per cent increase. HPI says that many dealers are choosing to download the HPI CO2 Certificate, which can provide customers with clear ‘at a glance’ information on the running costs.

12 | CarDealerMag.co.uk

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DASHBOARD.

Former mechanic lands his dream job bit.ly/landedjob

Winn Assist ‘it’s like an extension accidenT managemenT

There’s so much to be gained by taking control

re you missing out on both revenue and customer sales by relying on your current credit hire provider? Do you realise that there is an alternative to the standard model of letting another company provide a vehicle for your customer? Are you in control of what make or what model of vehicle your customer is getting from the credit hire company running your accident management programme? Do you know the advantages of you being in control? By taking control of the hire vehicle side of the credit hire scheme you are able to place your customer into the vehicle model of your choice. As long as any upgrade goes through at the correct rate for the model the customer currently drives, you are not contributing to additional costs for the insurance companies. With even the most reduced and managed hire days, it will mean that your customer gets to drive the vehicle you decide is best for them on the longest test drive they will probably ever have. You have the ability through utilising your hire division vehicles to achieve both a good rate of hire revenue as well as putting the customer into a vehicle that they will be more interested in purchasing from you after the hire spell than previously thought. After having the use of the additional specification / space / comfort or improved fuel economy over their current model, you will be in a strong position to talk to that customer on vehicle handover day about the potential deals on trade-in you can offer. Most vehicle owners are not satisfied with their vehicle following an accident and especially where major structural repairs have taken place. These customers are going to look at alternatives and with you controlling the options before the return of their vehicle, you will be in a much stronger position to satisfy the needs of your customer and generate another sale. To understand the details and increased revenue opportunities of this scheme speak to Ian Meachin, key accounts manager at Winn Solicitors, on 07525 986 854.

‘You will be in a strong position to talk about the potential deals on trade-in you can oﬀer.’

What is Winn Assist?

Winn assist automotive provides branded full accident management for your customers and a host of other services. Call 0845 217 2542.

of our business, they work on our behalf’

How a brand new sales scheme could get more customers into your showroom

ealers can reconnect with past customers and potential purchasers with a brand new sales scheme. Douglas Stafford’s own highly-trained team of automotive customer service advisors contact customers on a dealership’s behalf and bring them back into the showroom, creating extra sales opportunities. Guy Penfold, pictured, Renault Nissan brand manager at Crawley Down Group, Copthorne, West Sussex, has seen the benefits of the scheme. ‘In the first two weeks that we were up and running with Douglas Stafford their team got us 20 appointments in our diary,’ said Penfold. ‘Fourteen of those customers came in for their appointments and, of those, we sold five cars and bought two for part exchange. The scheme is working really well and it has more than paid for itself. ‘Contacting customers by phone requires an entirely different skill set from selling cars face-to-face. My team are car sales advisors – they want to deal face-to-face with people. That’s what they are strong at. ‘I’m sure there are a lot of people in the industry who would disagree with me – they would say: ‘‘No, you should get your salesmen to do it’’. And in fairness we were, but we weren’t getting anything like as effective results as Douglas Stafford are

achieving. Douglas Stafford’s telephone contact centre staff are specialists at what they do – and they are very professional in the way they do it. It’s like having an extension to our business – they are working on our behalf. ‘I get a lot of people coming to see me with marketing ideas and web solutions but I’ve never had something like this – it really has delivered in getting customers to come into my showroom in difficult and demanding economic times and that’s all I can ask. ‘We had a big sales target in March and I don’t think I would have got there without them. It’s certainly working very well. If you need more showroom traffic then I couldn’t recommend Douglas Stafford highly enough.’ Douglas Stafford’s Madelaine Cook, added: ‘The Showroom Appointment Initiative is delivering great results for our clients who are benefiting from our ability to bring past customers back into their showrooms. A large proportion of those customers are buying new cars.’ Find out more at Douglasstafford.com.

nine-to-five mindset means dealers miss out SOME 51 per cent of dealer website hits occur when showrooms are closed, peaking between 7pm and 10pm, says GForces. The firm says that despite this, a ‘paltry’ three per cent of the UK’s top 200 dealers have any kind of out-of-hours inquiry management service – either in the form of telephone call handling or ‘live chat’. GForces commercial director Tim Smith explains: ‘We live in a 24/7 age. These days you can log on to most supermarket websites and inquire about products and potential orders very late at night. By contrast, car dealers still have a nine-tofive mindset and they’re missing out.’

Marshall Motor Group snaps up four dealerships Marshall Motor group has said it has agreed to buy another four dealerships. subject to contract, Marshall will snap up the businesses from the privately-owned Pilling Motor group.

14 | CarDealerMag.co.uk

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D b a M

K m y a

O p y

A p i

C w C

D T E

ARE YOU GETTING ENOUGH OF YOUR SERVICE CUSTOMERS BACK INTO YOUR DEALERSHIP?

Douglas Stafford can increase your aftersales revenue by communicating with your past service customers on a regular basis and booking their cars in for services, MOTs or other aftersales related appointments. Keeping in contact with your past customers is essential in today’s competitive market. If you don’t, somebody else will. Not only will this initiative increase your aftersales revenue, it will also help to increase customer satisfaction and loyalty. Our contact centre customer service advisors will communicate with your past customers, create service bookings and keep accurate records enabling your clients to be contacted again at the right time in the future. As the majority of the charges for this initiative are performance related, it provides your dealership with a very cost effective additional resource to increase aftersales revenue. Contact Douglas Stafford today and one of our business development managers will come and show you how cost effective this aftersales initiative can be. Call Madelaine on 0800 783 1913 or email: madelainecook@douglasstafford.com

@DouglasStafford

Douglas Stafford Limited 1000 Lakeside Western Road Portsmouth PO6 3EN Telephone: +44 (0)23 9283 0011 Fax: +44 (0)23 9285 2900 Email: info@douglasstafford.com www.douglasstafford.com

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DASHBOARD.

Online portal netcars.com wins top award bit.ly/netcaraward

Japan earthquake: industry braced for production chaos

WarranTY Wonders

The whole market will suffer insurance ruling

James Baggott reports on the problems that could be coming

s Japan counts the cost of the earthquake and tsunami, the UK motor industry is bracing itself for the worst. Crisis meetings were this month being held in manufacturer boardrooms across the country as the ramifications of what the disaster could mean here becomes clearer. Production lines of most Japanese manufacturers were seriously affected by the earthquake, but although they’re largely back on line, it looks likely the problems could deepen. Huge numbers of parts manufacturers and suppliers were lost in the disaster and it’s this supply chain that’s vital to car production which could lead to problems across the world. Mazda stopped taking new car orders in America for a period in March. It was the first manufacturer to take action, but it’s unlikely to be the last. ‘I don’t think the UK car industry has woken up to just how much of a problem this could become,’ one manufacturer insider told us. Most makers have remained tightlipped about what effect the disaster could have on their business. But Car Dealer discovered production of Land Rovers was affected because it couldn’t source sat nav units, Honda has halved production in the UK, while there are rumours diesel models have been hit by delays in France. ‘Some parts are vital to car production,’ said one source. ‘From what we can gather a factory that makes chips to make cars Euro 5 compliant was completely wiped out. It was the only one that made these chips. That will affect car plants across the world, not just those in Japan. New suppliers can be found, but that takes time.’ One of the issues is the fact many manufacturers scaled back the number of new cars they held in stock during the recession, moving instead towards building on demand. Martin Ward from CAP has been looking into the problem and told us the disaster could lead to a number of issues in the UK. ‘Firstly, many manufacturers have made

Heavisides

Factories across the world could be hit by production problems right-hand drive cars for Japan and will now not ship them – that could lead to an influx of models with weird specs in the UK,’ he explained. ‘Then there’s used cars. Part supply doesn’t just affect new cars, what if your car needs a part and it can’t be supplied because it was made in Japan – cars could be off the road for months. ‘Of course new suppliers could be found, but testing for these parts takes months. We all hear about manufacturers testing their cars in South Africa and the North Pole for the tiniest of parts. Will they be prepared to put untested parts on their cars?’ Ward added many manufacturers don’t actually know what parts go into, say, a wiper assembly, because they buy the unit ready made. This is why manufacturers are so unsure as to whether they’ll be affected or not. There is even a rumour circulating in the industry that bitter rivals Renault and Peugeot/Citroen are working together to source parts, such is the scale of the seriousness. Professor Garel Rhys CBE, an expert on the motor industry and director of Automotive PR, said: ‘At the moment it is a case of the industry holding its nerve. The lack of production from component makers at the tier two and three level is a bigger problem down the supply chain, so it is important that the chain is reconnected before the supply pipeline is emptied.’ Last word from Ward: ‘What this means to the market is unclear. Some makers may stop taking orders so prices are pushed up in the used market for some models. Or it could go the other, if boat-loads of cars destined for Japan are shipped here instead flooding the market prices could tumble. We’re watching it closely.’

he news that the European Court of Justice has ruled that motor insurers can no longer differentiate between men and women for their car insurance beggars belief. I sometimes wonder what planet those who pass our legislation live on, because it obviously isn’t the one you or I are from. What comes next? Will it soon be ageist to charge a 50-year-old with 30 years’ faultless experience less than a 17-year-old who’s just passed his test? Will it be discriminatory for a sales rep to pay more for his 60,000 miles a year than a housewife doing 5,000 because he can’t help what he does for a living? The same logic could equally apply to GAP Insurance. Will it be illegal to charge variable rates for cover based on the value of the vehicle when it’s bought? The ramifications for our market are potentially enormous and motor insurance could well be just the tip of the iceberg. Regardless of how you view general insurers, their business is based on the assessment of risk and that assessment is made from fact. This isn’t sexism or an argument about whether women are better drivers than men, it’s cold hard fact – women have fewer and lower cost motor insurance claims than men and they represent a lower risk as a result. Insurance premiums are calculated based on extensive modeling and experience of risk – it’s not numbers plucked out of thin air, but the recent ruling seems to take the view that 350 years of insurance market experience counts for nothing and is unfair in the grand scheme of things. Of course, don’t think for a minute that half the country’s drivers will suddenly be paying less for their insurance than they do now. The whole market will suffer as a result of this ruling from Luxembourg and it will be the customer who foots the bill. Legislation is meant to be there to protect us as consumers, but just who’s being looked after here?

‘Women have fewer and lower cost motor insurance claims than men, it’s cold hard fact.’

Who is Tim Heavisides?

heavisides is CeO of Car Care Plan, the UK’s leading provider of motor warranty and gaP products. CarDealerMag.co.uk | 17

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The carindustry.com loses Millions! A spokesperson for thecarindustry.com revealed, “We didn’t realise that for years and years our customers would have paid more if we had only asked them”. “Without a ‘checkout till’ helping us control our sales this mistake has probably cost us more than £60 million in lost profit over the last 10 years”. WinWin

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DASHBOARD.

a round-up of the car maker’s april Fools jokes bit.ly/quitefunny

Why more Honda models could soon be going green H

the European market and it is something which we are concentrating heavily on. ‘We recognise that we have had a gap in the small diesel engine market for too long, and we haven’t been able to capitalise on this sector – this new engine will combat this.’ Meanwhile, Hodgetts has revealed that the demise of the Civic Type-R is a ’sign of the times’. Hodgetts said not having a Type-R halo model in the current UK range was unfortunate, but was a sign of the times we live in. ‘The Civic Type-R conflicted with the environmental image we are trying to improve,’ said Hodgetts. ‘However, the Type-R product is very synonymous with Honda and we want to have that image of being sporty and fun. ‘But that image must match an economical image too. That is something that most manufacturers are having a problem with and it is something we are trying to work out. ‘Without a Type-R halo model, it is very difficult for us to demonstrate this sporty side to our business and we are reluctant not to have a Type-R model on sale at the moment,’ Hodgetts said.

We’re not taking a Leaf out of Peugeot’s book NISSAN considered a rental concept to allow Leaf owners to drive a ‘normal car’ for longer journeys when needed. The scheme – similar to Peugeot’s Mu concept which allows owners to chop and change their cars depending on their needs – didn’t get the green light because the manufacturer has moved away from rental cars. However, Nissan’s EV product manager David Jackson said there was no reason why dealers couldn’t set up their own

PoinT of saLe

The importance of talking finance early with buyers

Other cars could follow the four-door Civic on the road to hybrid technology onda could be considering adding more hybrids to its current model range, says the firm’s MD, David Hodgetts. The Honda boss exclusively revealed to Car Dealer that the current four-door Civic hybrid hadn’t been a successful enough seller, so the firm might add the green technology to already popular models. ‘There is a possibility of having other cars in our range being available with a hybrid power-train,’ said Hodgetts. ‘We have a four-door Civic model with hybrid technology, but that has never been a big seller in Europe – the non-hybrid three and five-door models are.’ If Honda introduced a hybrid version of its Accord saloon, the maker would be bringing new technology to an otherwise conservative sector. Hodgetts agreed, but added: ‘There’s a possibility with the Civic and with the Accord, but they wouldn’t be top-sellers, merely a proportion of what we would sell. ‘We know there’s a maker out there that sells hybrids at more expensive prices, but we feel we have the best range. ‘We will continue to make hybrid cars – from plug-in hybrids to electric cars.’ Hodgetts also revealed the maker will be selling a new diesel engine next year. ‘We will be introducing a new smaller diesel engine which will be here by the end of 2012,’ he said. ‘This engine is being specifically built for

Hoggart

similar scheme to entice more buyers to switch to electric motoring. ‘The Leaf is for certain types of owners who make suitable journeys,’ explained Jackson. ‘The Leaf’s 100 mile-range is suitable for many drivers. ‘We did consider a concept that would allow drivers to hire conventional cars as part of their lease of a Leaf but we didn’t go ahead with it. There is no reason why dealers can’t do their own scheme.’ nissan leaf Manual, p42

n my role as sales director for DSG Financial Services, I take great interest in the sales process employed by all our key dealer clients and of course our target dealers. Studying how dealers differ in their approach to finance and insurance activity has revealed a wide variety of fixed processes and sometimes an unstructured attitude towards this key area of overall income. My concern is that many dealers still see finance as an income stream and only that. Enhancing profitability on car sales is absolutely critical and F&I certainly does that, however, many dealers are not realising the role that finance has to play in securing the car sale in the first place. How much income is lost or indeed how many customers leave forecourts or fail to be closed on the sale because they were not introduced to the concept of point of sale finance much earlier on? It is very difficult to know. In my experience, the dealers currently getting the best results are recognising the huge role that POS finance has to play. This can start with creative pricing of stock on both websites and in the showroom and by displaying PCP pricing that can evoke a greater sense of excitement in the customer as to what they can actually afford to buy. Alternatively just seeing a cash price can lead to silent wondering about how the cash price converts into affordability to them, a silence that they may not break and simply wander away. Bringing finance into the sales process earlier, perhaps by introducing the business manager at an earlier stage, can increase the conversion of customers who are on the fence in the buying decision, and of course convert more customers that feel they are best served seeing what Tesco can do for them. I am certainly not suggesting there is only one process to follow, but one surely not to follow is introducing finance options post-sale. Purchasing finance is a big part of the transaction and therefore combining the decision with the car much earlier on has to be better for both sales and profitability.

‘Just seeing a cash price can lead to silent wondering about affordability.’

Who is Mark gow?

Mark is sales director of Dsg Financial services. For more information on what his firm can do for you call 0844 880 0660 or visit dsgfs.com. CarDealerMag.co.uk | 19

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DASHBOARD.

range rover evoque to start at under £28k bit.ly/evoqueprice

BMW: M cars not dead

COMPEtitiOn

and the winners are

Boss Tim Abbott says sports models will just be changing

We had a fantastic number of entries in our Cars of the Future drawing competition and after much Tony hart-style debate in the office we’ve picked the winners. in the seven and over category, James Jervis, 10, from Portsmouth picked up first place with his raptor scorpio (above). Judges loved the detailed specification he provided. and in the under seven category, Oliver Bateman, six, from Worthing, won with his car that could drive on one wheel. Both get a £150 halfords voucher to spend on a bicycle!

MW’s M cars are not dead – they’re just changing. That was the positive message from the firm’s UK MD Tim Abbott. Performance fans will be pleased to hear that rising petrol prices and austere times have not sounded the death knell for BMW’s M cars – but they do mean what’s slotted under the bonnet will change. At the launch of the new 6 Series convertible in Spain, Abbott hinted that there will soon be an M6 joining the line-up, but that it might not have a booming V10 under the bonnet like the last one. ‘There’s still a place for M cars – even in these times,’ he told us, a few days before the M5 concept picture here was revealed. ‘But it’s now about getting maximum performance with maximum efficiency. ‘The smart way of doing that is not all about raw power, but how you deliver that power. Cars can perform and still be economical. We will build future cars that have M Power pedigree, but they might not necessarily have V10 and V12 engines. Ok, so the

purists might not like it, but we have to change the way we do things.’ The brand’s Efficient Dynamics programme has seen its cars become more and more economical but still have a focus on driving enjoyment. But what about that M6? Is it definitely coming? ‘Well, if you look at all the other generations of the car there has been,’ Abbott said. ‘I can’t say officially there will be one, but you only have to look back through the records to see the chance of there being one is very high.’ 6 Series Manual & Tim Abbott interview, p38

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DASHBOARD.

Around the world Dealer news from somewhere other than here

lexus CT 200h a sales winner in new Zealand bit.ly/CT200hWinner

DuBAI

a general Motors dealer for Chevrolet and gMC is further enhancing the customer experience by building a new showroom. The Dubai dealership will build a new 35,000 sq. ft showroom space dedicated to offering the full ranges of Chevys and gMCs. seventy-one vehicles will be on display from the Tahoe to the Camaro, and will open this month. sales of gM vehicles in the Middle east grew 5.5 per cent in 2010.

JApAn

JaPan has reported sales of cars down 37 per cent in March – the largest decline since 1968. sales of cars, trucks and buses have dropped to 279,389 due to the recent earthquake disaster. excluding lexus sales, Toyota sold 110,667 in March. Between March 14 and 26, Toyota lost 140,000 units of production due to parts shortages. sales of nissans fell by 38 per cent.

DeTROIT

The United states’ largest dealership chain, autonation inc, has declared Japanese cars will be in short supply in american showrooms this spring and summer. Customers will see shortages of vehicles made exclusively in Japan, and a slowdown in production of neW YORk pHIlIppIneS Japanese-brand cars Us consumers bought more cars in March, as a FOrD group Philippines has reported its strongest quarterly assembled in north recovering economy and continued low interest rates sales on record. First-quarter results revealed sales had reached america, said the firm. pumped up demand for new cars. Car sales in March 2,387 units – a growth of 74 per cent compared to 2010. The The shortages will last totalled more than 1.2m vehicles in the Us, an increase of group has also announced its One Ford Plan. Within five years, anywhere from two to almost 17 per cent from March 2010. small, fuel-efficient the group will introduce nine new products (eight of which will four months. vehicles led the charge. be global products), and will double its network capacity. Car_dealer_mag_142X190_Autoguard:Layout 1 24/3/11 09:46 Page 1

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22 | CarDealerMag.co.uk

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DASHBOARD.

MY fIRST saLe

Amanda Holtby

G3 remaketing’s director blames a Ford Orion for her career path

he first car I ever sold was a lovely turquoise Ford Orion in 1991. It was a J-reg example and came in desirable Ghia spec, and I particularly remember that car because I saw it queuing up waiting to go into auction. I thought it looked really smart, and remember saying to myself that one day I would own one myself. At that time I worked for Manheim Auctions but I wasn’t an auctioneer. I used to work in the sales office, and I was the person who processed the bid in the back office, did the legal bit, and effectively sealed the deal between the vendor and the bidder. The Orion sold for more than the vendor expected, and I recall telling the vendor this and how delighted he was. That first sale was very exciting. It was largely because I had come from a very dull and mundane nine to five admin job at Leeds City Council. The only exciting bit about working there was getting a social services referral – such

A Ford Orion, like this one, started G3 remarketing’s Amanda Holtby on a motor trade path

was the joy of the job! When I switched to the motor industry, I never looked back. The sheer joy and buzz of selling a car was something that I had never experienced before and it’s something that has led me to continue in the motor industry. That Ford Orion was responsible for me being where I am today. Sadly, I never managed to buy one – the closest I ever got was a Fiesta!

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helpdesk.

What’s up? Doc Car Dealer Club has secured another great service for dealers – a free Business Doctor to help you make more money

ar Dealer Club is a unique offering for motor traders of all sizes to gain access to a host of brilliant services. As regular readers will know, we recently signed up expert lawyer Lucy Bonham Carter to provide all club members with free legal advice as part of their £25 annual subscription to Car Dealer Magazine. Now, this month, we can announce another top signing – WinWin World’s Mat Hutchin as a business doctor. Hutchin and his team of experts are offering free, no-obligation advice for dealers that want to know where they can eek out an extra slice of profit from their deals. Don’t worry, it’s not a sales push – Hutchin will simply sit down with you and your team and cast a fresh pair of eyes over your business. He has more tried and tested methods of making extra money out of deals than anyone else and will share his exclusive hints and tips with you. You’ll be surprised what you can learn. Here, he explains why he wanted to help out Car Dealer Club members. Club members are naturally pretty business savvy, why would they need your help? WinWin World accepts that Car Dealer Club members are astute business people but we take a different approach as to why retailers should work with us. Formula 1 race drivers use professional coaches and telemetry to transform them from being just drivers into champions. We know Car Dealer readers can run a dealership but what WinWin World can do is turn them from good into great retailers.

How can you help club members? WinWin World is happy to work in any department within a member’s business to remove inefficiencies and make business improvements. It’s by doing this that you can make a real difference to your bottom line. We have four main objectives and these are: Help you sell more cars; help you increase the profitability on each unit; help you increase customer retention and help you retain more spend through the customer’s lifecycle. Are there any catches or is it really completely free? Our consultation for Car Dealer Club members and advice is free and will result in a free diagnostic telemetry report of how the member’s business is performing. We will also show members where they could take their business performance and profits if they shifted up into top gear. Top gear? Yes, our advice isn’t a sales pitch, but we will explain how our software solutions are proven to help improve dealers’ bottom lines. We have four different modules that link together to produce one unique solution. The difference in working with WinWin World is that we can either enhance your current systems, integrate with them to provide a holistic solution or upgrade them. Our four modules are focused around lead management, offer and sales optimisation, finance management and customer lifecycle management. We like to work consultatively with our customers.

‘‘

Our consultation for club members and advice is free and will result in a free diagnostic telemetry report on their business.

26 | CarDealerMag.co.uk

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Join Car Dealer Club by visiting CarDealerClub.com Members get free legal advice worth £199 for a £25 annual subscription

Is it just advice you offer or will you work with the Car Dealer Club member? We can diagnose what is required in a detailed report, but we can also assist the retailer in improving performance. We have a toolbox of services and processes that can be implemented by our team of business consultants following the initial diagnostic report. We’ve got a 50-strong list of ways to improve a motor retailer’s performance – the diagnostic report simply tells us where we need to begin! And the best bit? If a dealer wants to engage our services they would simply pay us from the incremental profits they make.

This advice is free, so can members expect the same level of service you would normally provide? Of course! We only offer one standard of service – and that’s first class. That is our commitment to Car Dealer Club members – they can expect that same level of first class service. What is your background in the motor industry? Company chairman Michael Jackson made his name worldwide as chairman of leading consultancy firm Jackson Consultancy where the paper-based diary system GoodManners was born. Before Goodmanners, structured sales process control was almost unheard of in the motor industry. Goodmanners was later developed into e-Goodmanners. WinWin World is made up of a highly professional and experienced team. Nigel Pates, technical mentor, masterminded the software; customer services director Mark Taylor-Jones has a background in software design before establishing WinWin World; while I was intrinsically involved with the launch of e-GoodManners to several motor manufacturer networks.

What prompted you to get involved with Car Dealer Club? As usual, I opened my copy of Car Dealer as soon as it came through the post and saw the offer of free legal advice and thought that added great value to the club. I then picked up one of James Baggott’s tweets and saw that the service had helped a member to win a court case. We came up with the idea of wanting to help Car Dealer Club members and it snowballed from there. We can’t wait to get our first patient!

To take advantage of the Business Doctor’s services, you simply need to join Car Dealer Club. Membership costs £25 per year and includes a subscription to Car Dealer, free legal advice worth £199 per year as well as access to exclusive services and discounts. You can join online at CarDealerClub.com or pay by cheque and fill in the panel over the page. Members receive a welcome pack with full details of how to take advantage of all the offers, including the new Business Doctor service, within a week of signing up.

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HelpDeSk.

Join Car Dealer Club by visiting CarDealerClub.com Members get free legal advice worth £199 for a £25 annual subscription

Ask lucy Car Dealer Club lawyer Lucy Bonham Carter answers dealers’ legal questions. Join for £25 a year to get advice like this when you need it

We are a main dealer for a Japanese manufacturer. Last December, a salesman sold a car to a doctor at a discount because the model had been stored. The model was registered as a 60 plate. There were various problems with the car as a result of the storage which we have fixed. However, it since transpires that the doctor has done some investigation work and the car we sold was not ‘less than a year since manufacture’ as the salesman had claimed but was made in 2007. The salesman has since left and the doctor is claiming either: a) a full refund for the vehicle less an allowance for the 4,750 miles done in the car since then; or b) us to buy the car back in the manner the vehicle was sold – ie at the value of a 2009 model with 4,750 miles. What do we do? PB, Pickering

If the doctor can show (or convince the court) that representation was made as to the age of the car then they probably did not buy the car they thought they were getting. The salesman represents and works for you and hence the assurance is as good as if you had given it yourself. This would apply to verbal information so if you are selling an older car you need to get the details of the sale precisely outlined in the bill of sale for your own protection. As you say, the salesman has left so without that

HElP!

are we right to say pump failure is wear and tear? Q. We are a Ford dealership and we sold a Ford s-Max three years ago second-hand. it is now nearly four years old so out of manufacturer’s warranty but it has only done 25,000 miles. The customer is attempting to bring a claim under the sale of goods act (1979) saying that the aBs pump shouldn’t fail at 25,000 miles regardless of age, especially as Ford give a three-year 60,000-mile warranty with new cars. We state it is fair wear and tear and hence not covered by the sOga. are we right? dmf, salford A. You may well be right and some failures are time, rather than mileage related. You are correct he is outside the warranty and hence Ford have no liability under the terms of the

warranty which is a contract. There is very little sOga responsibility on a four-year-old car. if you approach Ford the chances are they will agree a deal of around 40-50 per cent of the parts. You can then agree a contribution to the labour. if the customer refuses this and is determined to take it forward it is very unlikely they will get a better deal in court. as a Car Dealer Club member we can correspond with them on your behalf to this effect if you like.

information you are in a sticky situation. If it ever got to court the doctor would be likely to be accepted as a credible witness and the car would not be ‘as described’. In this situation the sale can be reversed and so you need to work out which

resolution will most limit your loss. The deduction for mileage in the event of ‘A’ very much depends on the age and model. If you come back to me with this information I will be able to give you a figure as to the mileage-based depreciation.

He’s threatening to sue

Could police seize this car?

Q. We have a customer who agreed to pay a £250 deposit for a new vW Polo 5-door 1.4 Dsg in white. We never took the payment as we needed to check availability. none was available so we offered him a red one on the same terms. There are now no other white cars in the UK except for ones with fog light and parking sensors as extras which would require additional payment. The customer is refusing to pay this and is threatening to hold me to the original deal stating he will sue us through the small claims court for the loss of a bargain. ms, Wimbledon A. he won’t win and it’s not worth him trying. You did not enter into a contract.

Q. We bought in a car from a dealer we know and then resold it to a customer – who happens to be a relative. There was not a massive amount of profit in the car. The police have been to see the buyer and are claiming that the car was originally bought by a company who claim they lent an employee the money to purchase the car with deductions to be made from his wages. He left and didn’t pay. The car was never registered to the company but the police have said they are prosecuting and are threatening to seize the car pending trial. Between when the chap sold it and our buying it the car has been traded between dealers four times. How do we work this all out? dd, Leeds

A. This is a civil dispute between two parties, not a criminal issue. I am surprised it has got so far. In the meantime any attempt to seize the car can probably be resisted if we intervene. There is a possibility of civil action between the company and the employee but this sounds very much like an informal unregulated loan arrangement. The resolution is thus much more likely to be a money judgment for the employer rather than an order to take back the car. In the unlikely event that the court orders the return of the vehicle then the deal unravels so you refund your customer, you obtain a refund from the dealer who sold it you and he from the person who sold it to him. And so on and so forth.

Who is lucy Bonham Carter? she is a leading commercial lawyer specialising in automotive. she heads the legal team at autolaw, a multi-disciplinary insurance and legal practice which specialises in providing legal assistance on motor trade-related legal issues and she provides advice to Car Dealer Club members. To get advice like this (worth £199) join Car Dealer Club for just £25 per year. sign up at cardealerclub.com 28 | CarDealerMag.co.uk

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Your advert said this car had air con but it hasn’t. I want you to pay for it to be retro fitted. What are you going to do about it?

My head gasket has gone on the car you sold me after just a year – I want my money back. What are you going to do about it?

The car you sold me has been clocked. I want compensation for the money I’ve spent on insurance and my money back. What are you going to do about it?

You sold me this car and I’ve found out it’s had an accident repaired. It’s not worth as much as you said it was. What are you going to do about it?

The clutch has gone on my new car. I’ve only had it eight months. You should pay for the repairs. What are you going to do about it?

PROBLEMS?

Let us help you solve them. Car Dealer Club members get free legal advice worth £199, access to exclusive discounts and a copy of this excellent magazine every month for an annual subscription of just £25 CAR DEALER CLUB SUBSCRIPTION FORM Your Name: ......................................................................................................................................................................... Company Name: ......................................................................................................................................................................... Position: ......................................................................................................................................................................... Telephone Number ......................................................................................................................................................................... Email Address ........................................................................................................................................................................ Address ........................................................................................................................................................................ ......................................................................................................................................................................... ......................................................................................................................................................................... ......................................................................................................................................................................... .........................................................................................................................................................................

CarDealer.Club Circulation audit question: Please tell us the LAST digit of your year of birth (born 1969 would be 9): ........... Please make cheques out for £24.99 made payable to BLACKBALL MEDIA LTD and send them to:

Car Dealer Club Offer Blackball Media 2a Church road Gosport, hants po12 2lb Or you can pay for your subscription online – simply fill in your details at CarDealerClub.com – and you can pay by credit or debit card. Once we have received payment you’ll be sent a Car Dealer Club membership pack with the details of how to take advantage of all the offers.

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ENGINEERED FOR EXCELLENCE

As the UK’s No.1, Black Horse is more than just a point-of-sale finance company. We have a proven commitment to supporting motor dealers in new and innovative ways, providing bespoke service and tailored products that are second to none:

t Superior online technology, for easier processing, quicker response times and fewer rejections

t Dedicated, highly-skilled sales force with expert knowledge of motor industry requirements

t First-rate point-of-sale material and dealer support t Approved Dealer Support Programme and Q-points rewards incentive scheme.

With all these resources in place, we’re looking forward to powering your sales in 2011 and beyond. Black Horse is the motor industry’s No.1 supplier, as voted for by the readers of Automotive Management.

Call 02921 386338 for more details or visit

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Finance available subject to status. Indemnities may be required. Black Horse Limited, St William House, Tresillian Terrace, Cardiff CF10 5BH.

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11 17:08:27

DASHBOARD.

JCT600 invest £700k in Mini dealership bit.ly/jct600cash

upwardly mobile James Batchelor reports on Google’s second web conference where the importance of mobile was top of the agenda

Ford social media guru Scott Monty’s top tips

elling a car is no longer a nine-to-five, Monday to Friday job. Gone are the days when customers came to dealerships wanting to have a brochure or some information about a car. Instead it’s all about customers being mobile and dealers recognising this and embracing it. That was just one of the issues that are facing dealers, advertising companies, and car manufacturers at this present time, according to the experts at Google’s Think Gearshift conference. Dealers have known for years that customers are using the internet to do their research about their next car, even comparing dealer against dealer for the very best offer. Importantly, though, customers were doing this in their free time in the comfort of their own homes. However, times have changed – and changed fast. ‘As of 2011, there are more than 16m mobile phone users in the UK alone,’ said Google’s mobile industry manager, Stephany van Willigenburg. ‘One-in-five people have mobile internet access on their phone, and one out of every four internet minutes is spent on a mobile phone. ‘It’s only going to grow too. We’ve already seen in quarter four of 2010 smart phones outselling PCs for the first time ever. By 2013 mobile internet users will exceed desktop users, and by 2015 mobile searches will overtake desktop searches.’ That’s not all, either. The UK will be the hot-bed for all of this mobile internet action, with Google predicting that by 2015 the UK will lead the way in smart phone penetration in Europe. The UK’s penetration figures will far exceed those of Holland, Italy, Spain, Germany and France.

Get into video content gOOgle’s video site YouTube was on hand to give dealers advice too – and had some impressive figures to hand. ‘Online video is a phenomenon,’ said Bruce Daisley, YouTube’s director. ‘an incredible 35m people in the UK watch online videos every month. While this figure includes platforms like BBC iPlayer and iTv Player, it is YouTube that leads the way – 30m unique video viewers compared to BBC iPlayer’s 4.4m.’ and it is YouTube that dealers should be investigating using. Daisley added that online video is free to use – it has massive opportunities and, because it’s free, if using video ultimately doesn’t work for a dealer, it hasn’t cost them a penny. ‘Dealers with video will see their website is 50 times more likely to appear on the first page of google,’ said Daisley.

tWittEr

Mobile phone searches are overtaking PCs

The result of this is inevitable – customers can access dealers’ websites and do research at any time and in any place. ‘We’re already seeing mobile phone usage being greater at times when desktop computers are off. Early in the morning, during the morning and evening commutes, and late at night mobile phone usage far exceeds that of desktop computers, meaning that consumers are online virtually all of the time.’ And do not think van Willigenburg is just talking about consumers surfing for jeans, shopping, and online music. Automotive searches on mobiles in the UK has risen by a whopping 134 per cent year-on-year since 2007, and automotive smart phone searches are 426 per cent higher than those made on WAP phones. She adds: ‘Interestingly – quite against what we expected – mobile users are far more likely to make two-word searches rather than desktop users. The latter users favours one-word searches, which means they are less likely to find what they are looking for as quickly as mobile users.’ Perhaps, more worrying for dealers though, is that Google estimates 40 per cent of mobile users have used a mobile app on a dealer’s forecourt. This means that if they are not happy in what they’re seeing on your forecourt, they will go online on their mobiles to find a car or dealer that does make them happy. However, van Willigenburg did have some good advice for dealers to make themselves more mobilesavvy. ‘Make sure your website is mobile-compatible and that it works for online users – if it doesn’t, consumers will just go elsewhere. And embrace Google Places.’ Do this and you’ll be helping yourself in an increasingly mobile world.

One of Think gearshift’s speakers was Ford’s head of social media, scott Monty who gave a fascinating speech. ‘With trust in companies at all time low, how can a brand like Ford earn this trust back?’ he asked delegates. ‘Well, one way we’re doing this is through social media – to improve the company’s reputation and to back purchase consideration. ‘By using social media, we are engaging with our customers and listening to what they’re saying. humans have two ears and one mouth for a reason.’ an expert in social media, Monty exclusively gave Car Dealer some top tips that dealers should be using too. ‘set up a Twitter account and just start chatting to people,’ he said. ‘By doing this you’re showing customers that you are human – this dramatically increases trust between them and yourself. ‘also, dealers should set up a google alert account. enter their dealership name and the products they sell, and google will monitor these terms. This allows them to see what people are saying about them and their dealership. ‘This is one thing, but more crucially is that dealers must react quickly and use real words – not “we apologise for the inconvenience” for example – to what customers are saying about them. Customers love to be acknowledged and know that you’re treating what they say seriously. it’s about building relationships – not just selling cars.’ right Click, p70 CarDealerMag.co.uk | 31

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FINANCE. CRIME

Fraudsters targeted MOTOR finance fraud cases fell 14 per cent in 2010 says the FLA. Its latest quarterly report reveals that the value of motor fraud cases overall in 2010 was £14.6m, down by 13.5 per cent on last year’s value. Finance companies recovered 40 per cent of all cars acquired through fraud thanks to their own investigations and to partnerships with police forces, including the industry-funded ACPO vehicle fraud unit. FLA head of motor finance Paul Harrison said: ‘It is near impossible to prevent all fraud, but the industry continues to work hard to stay ahead of fraudsters. Even if a fraudster manages to acquire a car on credit, our industry has a good vehicle recovery rate.’

SUCCESS

Mechanic lands top job A FORMER mechanic with a passion for cars has landed his dream job – spending millions of pounds every year buying cars. Leyton Cooper, 33, has now become the divisional group buying manager of ACF Car Finance, heading up the company’s team of preowned vehicle purchasers. Leyton is responsible for keeping the company’s national showroom network stocked with thousands of makes and models. With business currently at record levels, his role is crucial to ensuring that customers always have a wide choice ranging from compacts to estates and performance cars.

Numbers of cars bought on finance continues to increase

Latest FLA figures paint a positive picture for dealer finance schemes

ars being sold on dealer finance is up according to the latest figures from the Finance and Leasing Assoication. Finance sold on new cars was up six per cent, while used cars was up 20 per cent A large proportion of dealers offering low and zero per cent finance deals on cars in January – the latest figures, just released – helped people to buy new and used cars and reduce the impact of the VAT rise. However the FLA warned that this growth needs to be seen against the

particularly low level of sales seen in January 2010, in both the new and used car markets. Dealer finance is still the most popular way to buy a new car, says the trade body. It believes that 53 per cent of buyers chose the finance option in the last 12 months, up 0.9 per cent and the highest penetration rate since June 2009 Commenting on January’s motor finance figures, Paul Harrison, head of motor finance at the FLA, said: ‘New and used car finance sales in January exceeded

‘‘

market expectations. In addition to the flexibility offered by dealer finance, there were good, low-interest rate deals available, which contributed to the unexpected growth. January’s figures should, however, be viewed with caution, as the economic outlook in 2011 remains uncertain. ‘More and more customers are turning to personal contract purchase agreements because of the flexibility this provides. PCP deals accounted for 60 per cent of the credit advanced for new cars in 2010.’

PCP deals accounted for 60 per cent of the credit advanced in 2010

Finance special, p60

Oracle takes the pain out of benefit in kind legislation ORACLE Finance has launched a new initiative to help company directors and business owners beat the blow of impending tax changes. New government legislation coming into effect removes the £80k cap used to calculate the benefit in kind paid on

prestige company cars. However, Oracle Finance has announced a solution. Its service works around Oracle taking the vehicle out of the company and then instantly re-financing the car back to the end user at today’s market value. Peter Brook, managing director at

Oracle Finance, said: ‘Directors now won’t have their hand forced into disposing of their vehicles just because new legislation dictates that tax is based on a high original list price when in reality the car could actually be several years old and have depreciated.’

ervice Valuing – Valuing Service You! – Valuing You!

the first choice for First theResponse UK’s smallFinance to medium is the sized first dealer choicemarket. for the UK’s small to medium sized dealer market. 32 | CarDealerMag.co.uk

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..in association with

DeAl fInDeR Latest finance deals on superminis CliO ALWAYS high on buyers’ lists of desirable superminis, the Renault Clio has been a runaway success in the UK. Having tempting special editions in the line-up helps, and especially when finance is available – like on the Clio Dynamique TomTom 1.2-litre 75. Coming as standard with alloys, ‘sport front wings’, TomTom sat-nav, automatic headlights and front windscreen wipers, the Clio is currently available to customers on a zero per cent APR finance deal. The deal gets simpler too – the customer puts zero pounds down as a deposit, only having

to find £344.58 per month for 36 months, meaning the total on the road price is £12,405. The car is part of Renault’s eco2 range too – finance deals on green Renaults has never been so simple.

rolling, followed by 36 monthly payments of £219, at zero per cent APR. The final on the road cash price for the new-look Corsa comes in at a more than reasonable £11,595.

sWiFt THE Suzuki Swift is a firm favourite at Car Dealer. It’s subtle good looks, lively 1.2-litre petrol engine, and more than capable handling earns it a justified place in the list of fine superminis. From its packaging to its pricing, the Swift is all no-nonsense. The same can be said for Suzuki’s latest finance deal on the car, too. Available on the SZ2 three-door model, Suzuki’s new tempting finance deal of 6.9 per cent APR means that customers can have a car which comes with steering wheel-mounted audio controls, remote central locking, a leather steering wheel, ABS

Time is moneY

Change for the better

COrsA IT’S only just been launched but Vauxhall has already stuck a mightily attractive finance deal on the updated Corsa. Boasting a new corporate face and plenty of underneath modifications, the already popular Corsa is just about to become even more in demand. An interest free finance deal is now available on the 1.0-litre Excite three-door model, which comes with 16-inch alloys, Bluetooth, air conditioning, front fog lamps, and electrically adjustable and heated door mirrors. With £730 from the dealer and a customer deposit of £3,711 the ball gets

Such

with EBD, and a radio/CD, all at an attractive price. A deposit of £1,900 is required from the customer, followed by 36 monthly payments of £165. A final payment of £3,626 secures the car. Total payable is £11,466.

aking a change to the way we currently do things can seem very difficult and a big step to take, even if we know that this change is something that we should be doing and will ultimately make an improvement. Because we perceive it to be a ‘big step’ this then leads to common human behaviour of procrastination, excuses and telling ourselves that it’s ok, we will get around to it next week, month or year... or not, as is so very often the case. On the other side of the coin there are people who see the benefits of change and are willing to take the ‘big step’ in order to bring about a better performance as they appreciate that if they continue to do the same things, they will achieve the same results. Customer retention is a very good example of this. There are some car dealers who are exemplary at ensuring a customer comes back onto their pitch the next time they wish to buy a car as they maintain excellent contact with them and have an existing system in place to increase the chances of this taking place. Other dealers think about the sale for today and nothing more. And then there is the rest, those who are good at running a customer through a sales process while providing a good level of service but have no system in place for repeat business, they appreciate its importance but are put off by the ‘big step’ perceived with change. Last week a car dealer contacted First Response Finance to ask for help in looking at several years’ worth of previous customers. If you want to take the ‘big step’ there is help available, all you have to do is ask.

‘If you want to take the big step there is help available, all you have to do is ask.’

Who is Jonathan Such?

such is regional sales manager for First response Finance. You can contact him on 07917 781608 or email jons@frfl.co.uk

Tel: 0844 8730819 Tel: 0844 8730819 Web: www.frfl.co.ukWeb: www.frfl.co.uk CarDealerMag.co.uk | 33

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INTERVIEW.

Paul Tanner From delivery driver to MD, Alan Day Volkswagen’s boss has had a remarkable career path. James Batchelor chats to him

aul Tanner joined the motor industry 24 years ago and has remained in it ever since. ‘I joined Alan Day Volkswagen as a parts driver in 1987 when I was 19 years old. In actual fact, my wife-to-be had been working there for one year in the admin department before I joined. We also went to school together,’ Tanner, now managing director of the same firm explains. That decision to become a parts driver started a path that has led him to eventually taking the top slot at the firm – quite a career path... ‘After a short while as a driver, I moved on through the business into the parts department. I then spent two years in an apprenticeship in the service department doing electrical work, then I went back into the parts department as supervisor, and then I was asked to jump straight past parts manager to service manger. Later I took on the whole site as aftersales manager.’ Tanner describes his career in a very modest fashion. What he doesn’t tell you initially are the really impressive bits, like the fact he combined them with sporting talents on a national level. ‘I played football for Watford up until the age of 18, and I was also quite good at athletics.’ Quite good is an understatement as Tanner represented Great Britain at hurdles at the European club championships in his late teens. However, at the age of 19, disaster struck in the form of an injury that immediately ended his sporting career. It’s clear he finds it a difficult subject to talk about. What is clear, though, is the accident forced Tanner to pick himself up and put his efforts into something other than sport. ‘I had always had a strong work ethic. When I was an athlete I trained every day, and only ever had one day off a week. When I joined Alan Day Volkswagen, I most certainly wasn’t your typical driver. You would never find me just sitting around waiting for the next job – I was up cleaning shelves in the parts department! I’m just like that. I can’t sit still and I have to be doing something. That was something that Alan Day himself noticed and gave me the opportunities he did.’ It was this attitude to his job that saw Tanner work his way up through the business so quickly. After his time driving the firm’s vans, Tanner began an apprenticeship in the workshop. ‘I was your typical boy in that I loved electrics, and enjoyed

taking things apart and putting them back together again,’ he says. ‘I spent six months with the vehicle electrician, working alongside him to learn the ropes, and then I was doing my own electrical repairs to vehicles.’ This was early 1990s London. It was a time when expensive luxuries in cars in the previous decade started to filter down to mere mortals who desired these comforts in their Volkswagen Golf GLs. It was a moment when the fitment of aftermarket radios, CD and cassette players, central locking, alarms, electric windows and cruise control systems to customers’ cars were in extraordinary demand. ‘There was a huge market for it,’ says Tanner. ‘Cars would come in without electric sunroofs, and such was the demand for them, I remember standing on top of the cars with a saw cutting out a hole for the sunroof to go into. If that happened today, health and safety would have a fit!’ But standing on top of a VW Jetta and cutting holes into the roof to slot in a tilt and slide was 20 years ago. Now he’s managing director of Alan Day Volkswagen which has four sites, and is one of Volkswagen’s most forward-looking dealership groups. The story of Tanner becoming the big boss began in 2006 when Alan Day wanted to retire. Tanner had been running the Volkswagen sites for Day for a number of years, but then decided to join Volkswagen’s sponsored retailer programme. If successful, Tanner would have been in charge of a VW dealership, but VW could give him the keys to a dealership anywhere in the country. In an extraordinary stroke of luck, Alan Day decided to retire in 2006. Tanner seized his opportunity and bought Day’s Volkswagen dealerships, and was granted permission by the Day family to use the Alan Day name. In many respects, it was quite fitting that Tanner took over the Volkswagen side to the Alan Day business. Not only had Tanner joined when he was 19, but he was mentored by Day in the art of dealership management. ‘When Alan Day was running the business, he was a very driven man,’ explains Tanner. ‘He was a stickler for detail who settled for nothing less than perfect. The showroom had to look and feel right, and the cars outside had to be spotless. Everything that I know about the motor trade, I learnt from

‘‘

I remember standing on top of the cars with a saw cutting out a hole for the sunroof to go into.

34 | CarDealerMag.co.uk

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Brayley Honda makes it a family affair bit.ly/familyteam

him – he was a great mentor.’ One significant piece of business acumen Tanner learnt was customer service. ‘Back in the days I was starting out, Volkswagen had a programme called Blue Ribbon and it was something that Alan Day Volkswagen won six times on the trot,’ Tanner recalls. ‘It was given in recognition of excellent customer service and the deliverance of a quality service from sales through to parts, and was much respected by the network.’ So what’s the secret to good customer service? ‘Employing the right staff,’ says Tanner. ‘For me it is all about getting the right people who have the right mind-set, and we work really hard in delivering the best customer service. An example of our attitude towards customer service is us bringing back “host” staff. I’ve recently been interviewing the candidates myself to make sure that we get the right staff to do the job – a job which I see in the same vein as air hostesses on first class flights, or a maitre de in a restaurant.’ It’s not just bold plans like this, though. Tanner is also at the forefront of Volkswagen UK’s drive to make its dealers more ‘green’. A new site under the Alan Day name will be built by 2012 and will be the ‘greenest car dealership in the country’. While the future is bright (and green) for Tanner, the present is nevertheless a far cry from being a delivery driver all those years ago. ‘That is the very thing,’ says Tanner. ‘I have 10 to 15 people that have been with me right from when I was a driver who recognise that I am still the same guy now as I was when I was driving vans. ‘I play football with six of my technicians once a week, and we regularly have nights out to enjoy ourselves. I don’t think I am different from anyone – they know that and there’s a strong connection between all of us.’ Thanks to his father being a lorry driver, Tanner has always had transport running through his veins. But it’s sport that is the real driver in his life – and it’s a theme that is present in the next generation of Tanners too. ‘I have a boy and a girl,’ Tanner remarks. ‘My son is a gymnast. He’s 12 and trains 25 hours a week. He was national champion at the age of nine – the sport and the commitment has definitely run through. But my wife is pushing towards the academic side.’ Like father, like son then – only time will tell if he’ll be the next safe pair of hands for the Alan Day Volkswagen business. [CD] CarDealerMag.co.uk | 35

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big mike.

All Big Mike’s columns are on our website. Enjoy here bit.ly/bigmike

White lightning means I’m down with the kids

never knew it, but apparently I’m sick. ‘Sick’, that is, as in ‘down with the kids’, ‘happening’ or ‘groovy’, not chronically poorly. Well, perhaps not groovy, as the word itself derives from a different era, but whichever way you look at it, Big Mike is a lot cooler than he ever could have imagined. Why’s that? Simple. Because I’m ‘retro’. And retro, as far as any marketing type will tell you, is a Very Good Thing. Clothing labels, record companies, furniture stores, you name it – retro is the way to go. That is, boldly, but where lots of people have gone before. This age of retro-cool suits me down to the ground. As regular readers of this column may have noticed, I have an incurable fondness for vehicles of a certain era – mainly late seventies through to the mid to late eighties, when I could realistically get away with the nickname Medium Mike, and when I had youth and energy on my side. Nobody with a Black Country accent could ever quite pull off being a yuppie properly (at least not once they’d opened their mouths) but I came as close as a Wolverhampton boy could get, red braces and all. It was inevitable, then, that when I heard of a lovely – and I mean really, really lovely – 1986 BMW 320i going begging, finished in Rick Astley whiter-than-White, I had no option but to do a deal. Like all good car dealers, I ignored every rule the consumer magazines and price guides suggest, and bought it blind, over the internet. Let it be my fault, then, that the fuel gauge doesn’t work and it hunts for revs on idle… Even so, it was well worth the paltry Monkey-and-a-bit I coughed up for it, as I hope the photo illustrates (yes, Big Mike has a digital image capturing device too). When was the last time you saw one of these in such condition? Even more fabulous was the ultimate confirmation that I was a cool dude, which came when I went to pick the car up. No doubt some of you upper class dealers are rolling your eyes in bewilderment at this point, but here at the down-and-dirty end of the motor trade it’s not uncommon to spend half your week on the railways, chasing down bargain stock. And so it was that I rolled into the railway station in Ipswich (I blame eBay, and its wonderfully optimistic proximity references to

Big

mike Our man on the inside spills the beans on the car business...

your postcode) on a bright and chilly morning to meet the bloke who was selling it. It’s funny how you imagine what a person looks like when you talk to them over the phone, and prior to collecting the beefy Beemer I’d had a chat with the seller, Nick, a couple of times on the phone. He was polite, articulate, very genuine sounding and generally a nice bloke (I put the fuel gauge not working down to an oversight). I imagined both from his name and the timbre of his voice that Nick would be in his forties, and the kind of bloke to wear jeans and a golf jumper. So when the BMW pulled up at the station, sun gleaming off its icy white panels, I was amazed when Limahl stepped out of it. Wedge-shaped haircut, drainpipe trousers, narrow tie, beefed up jacket shoulders and a pair of spectacles that, at one time, you could only have got through the NHS. If ever there was anyone to find behind the wheel of an eighties BMW, this guy was it. Indeed, the only reason he was selling it was because he’d acquired a red Porsche 944. Nick, it turned out, was a salesman in his mid 20s, immaculately groomed and really quite handsome, though I say as much in a manly, firm-wristed kind of way. You know, a David Beckham type. The kind of bloke you aspire to be, rather than that you fancy… or maybe you don’t. Grooming aside, he was also pure comedy. For a moment, I thought I was lost in an episode of Life on Mars as he reached inside his jacket pocket and pulled out the biggest mobile phone you’ve ever seen, to bell his boyfriend for a lift home (at which point I lost all my aspirations). I enquired about said object, from the days when a phone was a phone and not a ‘personal communicator’, as it proclaims on the owners manual of my own latest widget. Apparently, Nick ran a sideline in buying old Eighties mobiles from car boot sales and re-equipping them with the innards of modern ones, so they can take pictures and receive emails, but still look like something from decades ago. Which, he assured me, was very cool indeed. On the basis that I can take pictures, send emails and look like something from roughly the same era, that makes me the definition of cool too, doesn’t it? Especially with my Beemer!

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. CarDealerMag.co.uk | 37

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forecourt.

Tim Abbott

Former car dealer and now BMW boss talks to us about the arrival of its ‘brand changing’ 6 Series Convertible and the state of the UK market Is this a key car to the dealer network? Yes. For me it’s a brand changer. A lot of them are corporate sales and what we tend to find is it’s high net worth company owners who buy a 6 Series. Possibly on contract hire. That sets a benchmark for the employees as an aspirational car. Then, some way down the line, we sell 3 Series and 1 Series to other employees. The 6 is the one that people aspire to own. A lot of dealer principals drive a 6. They like to be seen in it as it’s a car people want to own. Is it a problem not having a diesel available from launch? We have to accept certain cars will not come to the right hand drive market first. If we had our way we’d always have an M Sport car, a diesel and a four wheel drive car at launch. But you can’t always have that so you have to sell what is available. A lot of the early adopters will buy petrol. The diesel will come later this year and gives us another impetus to have another push. It’s always a frustration though. Is that why you’re launching the convertible first too? Well, to me, we’ve actually got it the right way round because now is a great time to launch a convertible. Invariably you launch the coupe and everyone asks where’s the roadster. So this time we’ve got it right and the dealers are very pleased they’ve got the car now to take advantage of the spring and summer. How do you expect dealers to market this car? About 50 per cent of current 6 Series are on contract hire and most will finish this year so there’s a chance to get those customers straight back in the new model. The new model has better RVs which help contract hire deals so the good dealers will be saying ‘you pay X amount a month already, now you can have the new one for X’. The cost to change isn’t too great. It’s important that they stress this is a brand new car and get them to drive it. We are hoping conquest will come into it too.

‘‘

You’ve just had your most successful year ever. How did you manage this? The business sales and fleet were up considerably. The 320d Efficient Dynamics car sold very well indeed in the corporate sector as it hit all

the right spots. 5 Series played a big part so I’d say it was down to having the right cars. We had the network in very good shape too coming out of the recession. It was a combination of dealers being good at what they do and us supplying the right product. What about this year? Well, we’ve had a good start to the year but now the austerity measures are kicking in, I think all of us will look at our pay packets and think differently about our spending. Everyone will have a bit of a wake-up call and with petrol going up people will look at the efficiencies of their cars too. The second quarter was always going to be a challenge but the good news is we’ve got product coming through and good availability of 5 Series across the range. It’s the same for Mini too with Countryman coming through in good production numbers. Product will pull us through, but overall it’s going to be tough.

We had the network in very good shape coming out of the recession

What about in terms of numbers? The SMMT predicts 1.95m. Do you agree with that? I do. But I think it’ll be a year of two halves. The first is going to be tough, but the second half will be stronger. I was at the SMMT recently and all the manufacturers were saying the same. It could get to 2m, but

1.95m is more likely. Economic forecasts say we’ll start growing again in 2012 but that depends on whether people will be able to borrow money from the banks. And I think the Olympics will have a big effect on confidence too. Talking of the Olympics, how will dealers be getting involved in BMW’s partnership? We’ve asked our dealers to get involved at a local level. It’s important the Games are not just seen as a London thing. So we’ll be supporting Olympians and Paralympians in all different sports. It’s about being recognised by future Olympians too. Every dealer has identified a local athlete to get involved with. We will obviously get tickets and we want to share those with our dealers. We will be supplying 4,000 cars for the fleet and those will be recycled out to the network. They’ll be a specific Olympic spec too and I think highly desirable. We will showcase some electric cars there too. What messages are you trying to get across to dealers at the moment? Firstly it’s about BMW i and how that works as a sub brand. We’re explaining what it means and how it fits and what their role will be. We also talk about electrification as there are a lot of issues around training and health and safety. We believe in dealerships but we want dealers to think more like retailers than car dealers. We want BMW to be seen as a progressive brand and one that can deliver excellent service.

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tHeMAnuAl TArGETS

EnGInES

BMW thinks it will sell around 1,000 convertibles in its first full year on sale. a coupe will join the line up in October.

Two engines are available at launch – both of which are more economical and have lower emissions than those they replace.

LOOKS

BMW has toned down the original Chris Bangle design and we’d have to say it looks all the better for it.

BMW 6 Series Desirable, powerful, refined... BMW’s 650i has come in for plenty of praise. James Baggott delivers his verdict WHAT IS IT? BMW’s aspirational car for executives high up the food chain who like to bronze their heads. The firm sold 14,000 examples of the previous generation model and hope that success will continue with the new model. With two new petrol engines, a new chassis and tempting specification it’s likely to attract more buyers to the fold. BMW expects to sell 1,000 convertibles in its first full year. A coupe is due to arrive in October.

WHAT’S unDeR THe BOnneT?

WHAT’S THe SpeC lIke?

WHAT DO THe pReSS THInk Of IT?

Impressive. Although both test cars we had the pleasure of driving had a staggering £11k’s worth of extras, standard spec is still generous. There’s leather upholstery, 18-inch alloys, twin-zone air con, xenon headlights, stability control and parking sensors front and rear. Tempting options include a colour head-up display, cruise control and side view cameras.

Despite thinking it was a little pricey, What Car? thought the big petrol engines were powerful and made a great noise and added: ‘With a good motorway ride and strong refinement, it’s a great way to thunder across continents.’ Autocar, meanwhile, thought the new model was ‘clearly more competent than the one it replaces’ and said it was a more worthy rival to the Jaguar XKR. And Auto Express thought it was ‘great to drive and hugely desirable’.

WHAT’S IT lIke TO DRIVe?

Great fun. The eight-speed semi-auto There are no diesel options yet. These gearbox has paddle shifts that are come later in the year. Buyers can entertaining to use. Activate sport choose the turbocharged six cylinder mode and buyers’ grins will just get 640i with 320bhp, 450Nm of torque, bigger. Shifts are super quick and in 35mpg and a 60mph time of 5.7 the 650i are accompanied by a subseconds. Or there’s the range-topping woofer like boom from the exhaust. twin turbocharged 650i V8 lump that’ll The car feels a lot more nimble than hit 60mph in 5.0 seconds thanks to its predecessor, gripping the road 407bhp and 600Nm of torque. It’ll tenaciously. Steering feel is perfect return 26.4mpg. Both are limited to a and it doesn’t feel like you’re driving a 155mph top speed. big car at all.

WHAT DO We THInk Of IT? We loved the last 6 Series and with the new version’s toned-down looks we think it’s even more appealing now. Not only is it great to look at but it’s rewarding to drive and packed with extras buyers are sure to appreciate. With cars like this in the range it’s little wonder BMW is enjoying such a purple patch in its illustrious history.

tHE KnOWlEDGE Model: BMW 650i Price: £73,430 (tested), range from £65,680 Engine: 4.4-litre, v8 twn turbo Power: 407bhp, 600nm Max speed: 155mph 0-60mph: 5.0s MPG: 26.4 Emissions: 249g/km residual values (three years): 35 per cent

tArGEt BUYErs: The boss. BMW is clear that buyers will be at the top of the tree.

tHE riVAls: Mercedes sl, Jaguar XK, Maserati grand Cabriolet

KEY sEllinG POints: 1. standard specification is extremely generous. 2. it’s more economical than the outgoing model. 3. residual values are up considerably on previous car.

DEAl ClinCHEr: it’s efficient and performs. Buyers can have their cake and eat it. CarDealerMag.co.uk | 39

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forecourt.

Kevin Meeks

Volvo’s network development manager explains why it’s so important to maintain an open dialogue with dealers Could Volvo grow in 2011? We could possibly stretch as we have a great product range at the moment. After selling 37,500 cars last year, we should be able to crack at least 40,000 cars this year. I know other manufacturers will be saying the same thing, but the important thing for us is to capture our fair share of the business out there. Corporate rather than retail will give us a better opportunity to do well, and if the market does suffer another set-back, providing we have reached our two per cent market share target we will have done the job that is expected. While it is tough at the moment, I can’t see customer confidence getting any worse. How can dealers help this? Well, it’s down to us selecting the right dealers to represent us. The dealers that perform the best are the ones who understand the brand and who have a passion for penetrating the local area – for instance advertising on local radio, on the backs of buses, and on billboards. We will do our bit of making sure we play to each model’s strengths, and by building a great showroom for them that shows off the whole product range, but it is down to them to show off the cars at fairs and shopping malls. Take the XC90 for instance which in 2010 recorded its best-ever sales – that was partly due to dealers showcasing the strengths of the car in their local areas. In 2010, you lost some dealers. Why was that? What’s important for me is that all of our dealers are performing at an acceptable level, and it is only if they are not or we feel as though we cannot work with them, we will put another dealer in or replace them. We have an open dialogue with our dealers in which we measure them in quartiles; we’re currently focusing on the lower quartile. Frankly, in this area, it is up or out. We will give every dealer as much help and support as they need to get out of this quartile, but if they cannot or are unwilling to work with us then we will have to part company. How have things changed from 2007 when Volvo was in the doldrums? Three years ago, we were not in a position to manage our network like I’ve explained, as we had dealers knocking on the door asking to hand back the franchise. They simply weren’t making any

‘‘

money… I actually feel embarrassed talking about it because it is so obvious that if it doesn’t work for the dealers, it’s not to going to work for us. We gave them too much stock, which the dealers had to off-load cheaply, meaning that while customers got a good deal on a new car it wasn’t quite what they wanted, and the dealer lost out. Consequently, in both 2007 and 2008 the network made a loss and that was a huge wake-up call. We realised that we had to treat dealers like partners and get them back to profitability, and in 2009 the network made a two per cent return on sales. In 2010 we sold more new and used cars than 2009, at better margins.

It is so obvious that if it doesn’t work for the dealers, it’s not going to work for us

You sold 14,000 XC models in 2010. Are there more models in the pipeline? There’s definitely room for at least one more. The XC range is so well perceived by customers

in the UK that we have said to VCC (Volvo Car Corporation) it is important that we offer the cars that customers want. There is definitely room below XC60 but not above XC90. Will there be any challenges that dealers will have to overcome with this car? My message to dealers is quite boring, actually! It’s focus on your local area, used cars, new cars and after-sales. While dealers did well in new and used cars and held well with profitability last year, it’s masking a problem with service retention. We’ve got a very strong independent network with Volvo, and we need to make sure we’re capturing back the aftersales business that we’re losing. We will work hand in hand with you to help you achieve this; that is why I am signing up all of our dealers to the Motor Codes programme, mainly because we can see how well our dealers are doing compared to the independent network. It is only when we can see that customer satisfaction with our network is at least as high as independents, we can genuinely say that we are performing at an acceptable level.

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tHeMAnuAl LOOKS

InTErIOr

The XC90’s nine-year-old body is still good-looking and embodies the sevenseat family sUv market it was once king of.

The interior is showing its age. everything is well built but the design is looking just a little long in the tooth.

EnGInE

range is now only made up of the revised 2.4-litre D5. it’s better than the old unit, but still a little harsh.

Volvo XC90

The XC90 is nine years old but it’s still a hit. For 2011, it’s been revised with a new engine. James Batchelor reports. WHAT IS IT? The Volvo XC90 is a car that needs little introduction. That’s because it’s been on sale for the past nine years. Over that time we’ve seen new lights, splashes of chrome, and even a V8engined XC90 at one point. But 2010 was the best ever year for sales totaling approximately 7,000 units. Now the range has been simplified with five trims and one engine.

WHAT’S unDeR THe BOnneT? The perennial 2.4-litre D5 engine; but thanks to some fettling it’s been uprated from 182bhp to 197bhp, and can haul the large SUV to 60mph in a shade over 10 seconds and on to a top speed of 127mph. The new unit is also more eco-friendly with 219g/km emitted from its exhausts, a reduction from the ‘old’ engine’s 224g/km.

WHAT’S THe SpeC lIke? The XC90 allows families to travel in seven-seat comfort. Even the entry

£34,795 Active model has a leather gearknob and steering wheel, cruise control, automatic dimming rear-view mirror, heated mirrors and rear park assist, while the range tops out at £44,230 for the Executive. Volvo’s slick Geartronic is standard on all models, as is IC, WHIPS, SIPS, ROPS, and RSC.

behind’, although it acknowledged that the XC90’s cabin ‘is terrific, especially for kids, and quality is beyond complaint’. What Car? agree with us saying that the XC90 is ‘a hugely impressive package that’s both comfortable and well built though it’s starting to feel its age’. Overall it gets a four-star rating by the press.

WHAT’S IT lIke TO DRIVe?

WHAT DO We THInk Of IT?

Surprisingly good. The XC90 is an effortlessly comfortable cruiser which, even when pushed hard, handles competently. Of course it rolls in the bends, but if customers plump for the £39,885 R-Design SE they get a stiffer, more responsive chassis. Although the engine is a tad noisy and harsh, and the XC90 is just – just – starting to feel a little old in terms of dashboard ergonomics.

The XC90 has become as famous among families as the V70 has because it is a genuinely excellent car that has all the space, comfort, safety and style wrapped up in a body that is as durable and classless as a Barbour jacket. It’s a well-built car that looks stylish, and can carry seven in comfort and safety. While we might miss the petrol-engined variants, the new diesel makes sense even if it is a bit noisy. Prices are a tad steep, but most customers in this sector are prepared to pay for a good car. We’re looking forward to its replacement due soon.

WHAT DO THe pReSS THInk Of IT? Autocar felt that the XC90 was ‘once the class leader, but now it’s been left

tHE KnOWlEDGE Model: volvo XC90 se Price: £38,095 (tested), range from £34,795 Engine: 2.4-litre, diesel Power: 197bhp, 420nm Max speed: 127mph 0-60mph: 10.3s MPG (comb’d): 34 Emissions: 219g/km residual values (three years): 36 per cent

tArGEt BUYErs: affluent 35 to 55-year-olds, families usually with more than two children who need flexibility of seven seats.

tHE riVAls: BMW X5, audi Q7 and Mercedes Ml

KEY sEllinG POints: 1. seven seats as standard 2. Class-leading safety systems for all occupants 3. size. it’s very ‘car-like’ to drive, aiding manoeuvrability and enjoyment

DEAl ClinCHEr: The XC90 is a proven sales success and offers families comfort, safety and class. CarDealerMag.co.uk | 41

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fOReCOuRT. tHE KnOWlEDGE Model: nissan leaf Price: £25,990 (including £5,000 government grant) Engine: electric motor Power: 107bhp, 280nm Max speed: 90mph 0-60mph: 11.9s MPG: 109mile range Emissions: 0g/km residual values (three years): 37 per cent

tArGEt BUYErs: Most buyers will have a second car in the household, will like technology and will have off-street parking.

tHE riVAls: Toyota Prius, Citroen C-Zero, Mitsubishi i-Miev

1. £1 will take you 73 miles – in a Focus diesel £1 is good for 11 miles. 2. On a PCP (most popular buying method) it costs £399 per month. 3. Company car drivers will pay no benefit in kind.

DEAl ClinCHEr: You can fuel it at home for just £2 a fill-up.

The leaf can cover 109 miles on a full overnight charge. nissan says 95 per cent of UK daily travel is just 25 miles.

WHAT IS IT?

WHAT’S THe SpeC lIke?

Nissan would have you believe it’s a revolution for the car industry. It’s the first five-seater, all-electric car in production, produces zero emissions and costs just £2 to ‘fill up’. The benefits don’t end there. Buyers enjoy zero road tax and company car drivers won’t be clobbered by any benefit in kind. That means someone driving a 1.6-litre diesel Ford Focus, paying £4,000 company car tax a year, would see that amount back in their pay packets.

Well, Nissan made little noise about spec on the launch, concentrating more on the technology. But customers will be pleased to hear there’s lots to entertain. Headliners include sat nav and reversing camera as standard as well as central locking, alloys, climate control, a CD player and electric windows and mirrors. The only option is a solar panel on the spoiler that tops up the 12v battery. That costs £250.

WHAT’S unDeR THe BOnneT?

KEY sEllinG POints:

rAnGE

It’s the first five-seater mass-produced electric car, but James Baggott finds out the Leaf isn’t for everybody

A big fat electric motor. Show any non-petrol head the unit and most will be convinced it’s a standard engine. To the uninitiated it certainly looks that way. The power cables give the game away. That motor produces 108bhp but it’s the dollop of 280Nm of torque, available immediately, which really makes the difference.

WHAT’S IT lIke TO DRIVe? Nissan says the Leaf’s range is 109 miles and believes that 95 per cent of daily car travel is less than 25 miles. There are two power modes, a normal and an eco. In eco, power is seriously reduced but the range improved and in normal the Leaf’s surprisingly swift. What’s immediately apparent is how quiet the car is and how well it rides over bumps.

WHAT DO THe pReSS THInk Of IT? Autoblog said the Leaf could possibly be the most impressive car it has driven all year. The Green Car Website loved it and said owners would claw back the higher purchase price with lower running costs. And Autocar said that despite the ‘real world range’ being only about 80 miles it was ‘easy to see its huge potential’.

WHAT DO We THInk Of IT? We like it a lot, but the 26 dealers currently selling it will need to heed the maker’s advice and ensure the right buyers are snapping them up. It’s true that at £25,990, with the government’s £5,000 grant thrown in, the Leaf looks expensive but we’d liken it to a new Apple Mac: It might do the same thing as a normal computer, but knowing you’re at the forefront of technology and slightly wacky-cool for owning it, will make that extra cash worth spending.

nissan leaf FILLInG

it takes 12 hours to recharge from a standard socket, but fast chargers can boost a battery from 30 per cent to 98 per cent in just 20 minutes.

DESIGn

nissan had to modify the headlights to channel wind around the car to reduce noise. They even had to find quieter wiper motors!

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tHeMAnuAl HAnDLInG

POWErTrAIn

The CT 200h is far from being a driver’s car with numb steering and less than engaging drive.

CT 200h’s powertrain is closely related to that other eco-hatchback – the Toyota Prius

InTErIOr

Posh and luxuriously appointed. Dash looks very much like the BMW 1 series’

lexus CT 200h It’s one of Lexus’ most important models ever and enters previously un-trodden territory. James Batchelor reports WHAT IS IT?

tHE KnOWlEDGE Model: lexus CT 200h se-l Price: £25,200 (tested), range from £23,485 Engine: 1.8-litre, petrolelectric hybrid Power: 134bhp, 207nm Max speed: 112mph 0-60mph: 10.3s MPG (comb’d): 68.9 Emissions: 94g/km residual values (three years): 39 per cent

WHAT’S THe SpeC lIke?

WHAT DO THe pReSS THInk Of IT?

The CT follows in its bigger brothers’ footsteps by being luxuriously appointed and generously equipped. Lexus is making a big thing of the CT being £1,500 cheaper than an equivalent A3 or 1 Series but the nowessential sat-nav is a costly extra on the mid-grade SE-L model and lesser SE-I. There are three trims: £23,485 for SE-I, £25,200 for SE-L, and £30,635 for SE-L Premier.

Auto Express wasn’t too impressed with the CT 200h’s styling saying that it was both ‘bland and fussy’. However, the magazine added its low emissions would make it a strong seller. Autocar was of a similar view believing that the low ownership costs would make it a winner with company car drivers, but said its ‘one-dimensional’ drive-train was out of step with drivers used to modern diesels.

WHAT’S unDeR THe BOnneT?

WHAT’S IT lIke TO DRIVe?

WHAT DO We THInk Of IT?

KEY sEllinG POints:

The main provider of the power is the 98bhp 1.8-litre four-cylinder petrol engine, mated to an 81bhp electric motor through a ‘hybrid transaxle transmission.’ What all of this actually means is that the CT 200h only produces 94 g/km of CO2 resulting in free road tax and London congestion charge, and qualification for the 10 per cent benefit-in-kind company car tax.

There’s no getting away from the fact that the CT 200h is closely related to that other eco-hatchback – the Toyota Prius. That means a relaxing 0-60mph time of 10.1 seconds, a leisurely top speed of 112mph and even more leisurely acceleration. When Sport mode is engaged, a tad more power is available but the chassis is not geared up for enthusiastic driving and nor is the numb steering.

There’s no denying that the CT 200h is an impressive package in an otherwise boring market. The car is far more posh than its Prius cousin, but that family relationship also means that the CT is not that enjoyable to drive. Impressive ownership costs will make the car appealing, but if customers are interested in driving, the faster but slightly costlier BMW 118d is far more tempting.

DEAl ClinCHEr: Impressively low emissions and running costs.

It’s the world’s first full hybrid in the premium compact sector. In other words it’s Lexus using its much admired and tested hybrid drive, slotted into a medium-sized hatchback, and garnished with all the luxury and refinement of more expensive Lexus cars. It’s going to be the most popular Lexus ever, with some dealers saying the car will account for 50 per cent of their sales.

tArGEt BUYErs:

a mixture. Traditional lexus buyers wanting a second car, and new lexus customers. Will mostly appeal to company car drivers, though.

tHE riVAls: BMW 1 series, audi a3

1. On average £1,500 cheaper than market-leading BMW 1 series and audi a3. 2. it’s refined and ultra-quiet. 3. successful transfer of lexus qualities to a premium hatchback.

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fOReCOuRT. tHE KnOWlEDGE Model: skoda superb greenline ii elegance Price: £24,040 (as tested) Engine: 1.6-litre, diesel Power: 104bhp, 250nm Max speed: 119mph 0-60mph: 12.4s MPG: 64.2 Emissions: 114g/km residual values (three years): TBa

tArGEt BUYErs:

Company car drivers and family buyers.

tHE riVAls: Ford Mondeo eCOnectic, volvo v50 Drive.

KEY sEllinG POints:

1. road tax is just £30 a year. 2. Combines all the good elements of the superb with a greener package. 3. it is seriously huge.

DEAl ClinCHEr: lots of space and care of the environment too.

$'9(57 QHZ ORRN 35,17 LQGG

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Superb Greenline II

With updated technology, Skoda are showing that being green doesn’t have to mean being dreary. James Batchelor reports. WHAT IS IT? The Skoda boffins have been working on their much-applauded Greenline technology and have updated it with the Greenline II.

WHAT’S unDeR THe BOnneT? A 104bhp 1.6-litre turbo diesel unit that emits 114 g/km of CO2. Due to aerodynamic modifications, the car manages an MPG figure of 64.2 mpg.

WHAT’S THe SpeC lIke? Unlike with the previous Greenline range, Greenline II is not a specific trim level, rather a trim within trims. So customers can have the green model in any trim level; starting at £19,790 topping out at £24,040 for the Elegance Greenline II.

WHAT’S IT lIke TO DRIVe? There’s no denying the 1.6-litre TDI isn’t the best engine for such a large car, but it makes a good go at it. It’s perfectly adequate but customers shouldn’t expect lightning-quick acceleration when overtaking.

WHAT DO THe pReSS THInk Of IT? What Car? felt the Superb Greenline II makes sense financially, while Autocar said ‘it’s an excellent way to travel’.

WHAT DO We THInk Of IT? We already know the Superb shows up other more expensive rivals. Now it shows being green needn’t be dreary either.

8/4/11 12:59:51

tHeMAnuAl

Hyundai ix20

Hyundai is trying to emulate the success of the Kia Venga with its new ix20. Does it succeed?James Batchelor investigates. WHAT IS IT? This is the sister car to the superb Kia Venga, but comes with added Hyundai-ness. That means a different, bolder nose, restyled rear, and a glitzier dash.

WHAT’S unDeR THe BOnneT? Three simple engine choices on offer here: a 1.4-litre petrol five-speed manual, a 1.6-litre petrol automatic, and a 1.4-litre diesel sixspeed manual.

WHAT’S IT lIke TO DRIVe? Like its other Hyundai brothers, the ix20 is a delight to drive; easy in the city, and it’s also rather capable on the motorway. The 1.4-litre petrol is perky too.

WHAT DO THe pReSS THInk Of IT? The Independent said it’s ‘a pleasingly designed utility object’, while Autocar said ‘it comes highly recommended’.

WHAT’S THe SpeC lIke?

WHAT DO We THInk Of IT?

Again, three choices. £11,845 gets customers into the well-equipped Classic, just over a £1k more is the Active, while Style starts at £13,990 and rises to £15,420.

Hyundai have entered a highlycompetitive market place with a car that really delivers. But we prefer the cheaper, better-looking and seven-year warranted Kia Venga.

tHE KnOWlEDGE Model: hyundai ix20 style Price: £13,990 (as tested) Engine: 1.4-litre, petrol Power: 89bhp, 136nm Max speed: 104mph 0-60mph: 12.9s MPG: 50.4 Emissions: 130g/km residual values (three years): 35 per cent

tArGEt BUYErs: Young family drivers and downsizing mature buyers.

tHE riVAls: Citroen C3 Picasso, Kia venga.

KEY sEllinG POints: 1. all engines are refined. 2. interior is solidly built and rather attractively styled too. 3. superb rear passenger and boot space are high on the ix20’s plus points.

DEAl ClinCHEr: a genuinely competent car that’s more than a match for its rivals.

Unlock your potential

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fOReCOuRT. tHE KnOWlEDGE Model: renault Clio gordini 200 Price: £20,220 (as tested) Engine: 2.0-litre, petrol Power: 197bhp, 214nm Max speed: 141mph 0-60mph: 6.7s MPG: 34.4 Emissions: 195g/km residual values (three years): 36 per cent

tArGEt BUYErs: affluent youngsters.

tHE riVAls: Mini Cooper s, abarth Punto evo, alfa MiTO Cloverleaf

KEY sEllinG POints:

1. along with Twingo, revives the gordini name from the 80s. 2. luxurious interior. 3. stripes, alloys and white spoiler make gordini look different from lesser models.

DEAl ClinCHEr: exclusivity guaranteed. Only 500 for the UK.

Renault Clio Gordini 200

renault is reviving an iconic name. Gordini is back, but this time on the renaultsport Clio 200. James Batchelor reports. WHAT IS IT? It’s the Renaultsport 200 with added glitz. White stripes, leather interior, special alloys and a load of Gordini badges adorn what is an already renowned hot hatch.

WHAT’S unDeR THe BOnneT? It’s the ‘standard’ 197bhp, normally aspirated, 2.0-litre unit beloved by so many Renaultsport Clio fans over the past few years.

WHAT’S THe SpeC lIke? Impressive compared to the normal supermini – with full leather, diamond alloys, white mirrors and ‘front bib’, body-coloured spoiler, and gloss-black rear diffuser.

WHAT’S IT lIke TO DRIVe? If customers like the raw RS 200, they’ll love the Gordini. Great chassis and slick gearbox all feature, but the engine has to be worked hard to perform.

WHAT DO THe pReSS THInk Of IT? Autocar says most customers would ‘be best served sticking with the entry model’ while Evo says the car is ‘insulting’ to Amedee Gordini’s memory.

WHAT DO We THInk Of IT? There’s no doubt the Clio Gordini is a great car to drive but the Gordini ‘look’ is contrived and nasty.

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tHeMAnuAl

VW Touran

tHE KnOWlEDGE

Volkswagen has treated the Touran to a visual and mechanical overhaul. James Batchelor investigates. WHAT IS IT? A revised version of Volkswagen’s compact MPV. The new Touran wears a new face, plus has a restyled rear and interior. Eight thousand are expected to be sold in 2011.

WHAT’S unDeR THe BOnneT? What you’d expect from a modern Volkswagen. So there’s a diminutive but quite punchy 1.2-litre TSI petrol, a 1.4-litre TSI petrol, a 1.6-litre diesel available in 89bhp and 104bhp guises, and a 2.0-litre petrol in 138bhp and 166bhp forms.

WHAT’S IT lIke TO DRIVe?

Model: volkswagen Touran se 2.0-litre TDi Price: £23,855 (as tested) Engine: 2.0-litre, diesel Power: 138bhp, 320nm Max speed: 125mph 0-60mph: 9.9s MPG: 53.3 Emissions: 140g/km residual values (three years): 37 per cent

The Touran drives just the way you’d expect; it’s dependable and predictable, but has stiffer suspension than most other rivals which ensures less body roll. Ideal if dad wants to plough on through the twisty stuff.

tArGEt BUYErs:

WHAT DO THe pReSS THInk Of IT?

tHE riVAls:

Auto Express felt that the Touran was reasonably priced while What Car? thought the dull interior didn’t match the classy exterior.

KEY sEllinG POints:

WHAT’S THe SpeC lIke?

WHAT DO We THInk Of IT?

In typical VW style, spec comes in three levels and all have appropriate equipment befitting the trim level.

It’s hard to get excited about the Touran because it is gets quietly on with the job. But that’s its very appeal.

Primarily families who want more space than a golf Plus, but less room than a sharan.

renault grand scenic, Ford grand C-Max. 1. smart looks and image. 2. simple folding seat mechanism. 3. interior is well laid out.

DEAl ClinCHEr: it’s probably the best in its class.

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FEATURE.

China FINE

A new franchise is coming. With the backing of the mighty IM Group, Great Wall will arrive in the summer. Car Dealer has the exclusive inside line on the cars, the dealers and the people behind the launch Words: James Batchelor & James Baggott. Pictures: Dean Smith

aul Hegarty wants to shake up the UK motor industry. He plans to do this by introducing a Chinese car brand to a country that is steadfast in buying German, French, Japanese, Italian, Swedish and one notable American brand. Hegarty knows that the UK is a difficult marketplace to penetrate, though if done successfully there are strong rewards to reap. The company that Hegarty will be launching is the Chinese manufacturer Great Wall. Armed with two products – an attractive supermini and a no-nonsense pick-up – Hegarty aims to create a nationwide dealer network that will deliver extraordinary levels of customer service, and will make the buying process for customers a simple and straightforward one. The company has been established in its home market since 1976 and already sells its products in more than 100 countries. The UK is the next market Great Wall wants to conquer, and will sit under the IM Group umbrella, with Hegarty at the helm. ‘We want to offer the customer more for less,’ says Hegarty, managing director of Great Wall Motor Distributors (UK). ‘The quality of the cars is very impressive with many Germanic associations. We will be launching with specifications that most people would not expect. ‘The Koreans would be the most obvious competition, but it doesn’t matter what you compare Great Wall products to, the spec will be higher. I don’t think we will have a base spec – our “base” spec will be higher than many of our competitors’ top specs.’ It is, however, the dealer which will be the biggest point of difference, says Hegarty. ‘For us, the dealer is very important in the overall proposition,’ he explains. ‘Over the years the dealers’ contribution to how a brand is perceived has become secondary to the brand itself. ‘For us, the dealer is part of the brand because we really want to nail this issue of customer service, and deliver an experience beyond what customers would expect from us and the dealer.’

Hegarty and his team have drawn up a Customer Charter – specific ways in which dealers can both deliver outstanding customer service and keep Hegarty and Great Wall happy. ‘We will go to dealers and say this it what the charter looks like as far as we’re concerned in demonstrating your commitment to extraordinary levels of customer service, compared to standards already appreciated in the industry,’ explains Hegarty. ‘Our Customer Charter is not rocket science – if we’re honest, most dealers are probably doing 80 per cent of it already. But we want to go further and exceed all previous expectations with extraordinary service.’ Discussions with some dealers have already taken place, many of whom appreciate Hegarty’s back-to-basics methods of selling and looking after customers. ‘We’ve got a lot of interest from dealers – about 250 so far and rising every day,’ he says. So, how many dealers is Hegarty going to kick off with? ‘That’s not really for us to say. That’s because it is up to the dealers in whether they feel comfortable in going to market with the offering that we’re going to have,’ he explains. ‘If they’re happy in implementing all of the things in our customer charter, then they’ll opt into the franchise. That means if we start out with 60 dealers, we start out with 60. If it means 40, then it’s 40 – we just don’t know.’ Nevertheless, for those dealers who agree with Great Wall’s proposition, they can be assured there will be benefits in holding the franchise. ‘The financial rewards will be linked to the customer’s opinion on how he was served by the dealer,’ says Hegarty. ‘So each dealer will have to satisfy their own customers’ requirements and if those customers score that dealer highly, the dealer will enjoy rewards, benefits, incentives and bonuses that relate to the customer service they offer. ‘These bonuses won’t be related to registration targets but customer service, because we feel that if customers are enjoying the buying experience one of our dealers is offering, they will be advocates for that dealership and spread the word. By being good, you will get more sales and earn

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PrODUCTS

There are plans to bring 1.3-litre and 1.5-litre versions of the C10 supermini to the UK. Then, in 2012, a honda Cr-v sUv rival could follow with 2.0-litre petrol and a 2.0-litre diesel units. at the Beijing motor show, last year, great Wall launched nine new cars, so there’s plenty of metal still to come.

The name game iM group had the opportunity to change the name great Wall before launch, but decided not to. We asked boss Paul hegarty why. ‘in some markets great Wall is known as gWM,’ explained hegarty. ‘We could have adopted that name for the UK, but we felt it was anonymous. gWM does nothing to build an image of a new car company – whereas great Wall does. it’s strong sounding and looks good in the brochures. great Wall is probably the strongest image of China too. Bearing in mind we don’t think being Chinese is anything but a positive, the name great Wall is ideal.’

more money. But in addition to that, there will be a bonus structure implemented by us to reward the dealer if they are keeping their customers satisfied.’ Hegarty’s plan for dealers sounds refreshingly different, but surely the Chinese name and associations of the country producing inferior products in the past will be a problem? ‘That is part of the challenge ahead of us,’ replies Hegarty. ‘But our research shows there are certain profiles of customers where the Chinese thing is nothing less than a positive. These people see buying a Chinese car as a great opportunity to buy something that has outstanding value for money and great specification, but clearly there are other people who will dismiss it.

‘Let me put it like this: Most cars are built these days in places where you would never expect them to be made – it could be BMWs from South Africa, a Honda Jazz from China, or Nissan Micras from Thailand – and I think the idea that a car being built in location X is better than it being built in location Y has eroded over the last few years. ‘We really don’t believe the Chinese association is going to be a barrier to the majority of customers. The only customers who aren’t going to buy a Chinese car are the ones who just buy because of a brand. The customers who buy a prestige German brand, for instance, buy because of the badge, regardless of where it is built.’ CarDealerMag.co.uk | 49

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feATuRe. JUST AnOTHEr MG?

he majority of UK consumers are driven to buy a particular car because of the way it looks, the quality of its construction, the specification and the customer service they will receive when buying it. And Great Wall matches all of these requirements. However, Hegarty can see one drawback. ‘The problem we might have is that Great Wall isn’t known by consumers at the moment,’ he admits. ‘But with our strong proposition and by working with our dealers, this is only a shortterm problem.’ Hegarty can say this with some guarantee – he does have a history of bringing in Far Eastern brands to the UK, after all. He joined the IM Group in 1989 as regional manager with Subaru/ Isuzu, then became dealer development manager, then famously progressed on to the role of operations director of Daihatsu, responsible for overseeing the relaunch and development of the Japanese brand in the UK. It was a role that only ended recently when it was announced that the importing of Daihatsu models had become too expensive. ‘But there is no link at all between our talks with Great Wall and the demise of Daihatsu in the UK,’ he says firmly. ‘They’re only linked in that we are the group who represents the brands and other franchises.’

History lesson Behind the story The history of great Wall stretches back further than you might think. The company was established in 1976, but serious production only started in the early 1990s with the firm specialising in vehicle conversion. The firm quickly became known as one that could turn a conventional truck into a fire engine or even an ice cream van. however, great Wall’s real breakthrough came when it turned its hand to building vehicles itself. Using engines from one supplier, components from another, and putting them together into its own bodies, great Wall quickly grew in its domestic market. in 1997 the first exports of pick-ups began, and by 1998 great Wall pick-ups ranked number one in sales volumes in China. By 2010 the company could boast sales in more than 100 countries, and celebrated building its 700,000th pick-up. But that’s not all – great Wall wants to be the biggest seller of both sUv and pick-up sales in China by 2015. and by 2020, great Wall is confident it will become number one for sUv and pick-up sales in the world!

Conversations between the IM Group and Great Wall started 10 years ago shortly after the group set up an office in China. The team was inquisitively looking for a new brand to market, and the IM Group believed Chinese firms were where the opportunity was going to lie in the future. So, why has it taken so long to bring Great Wall to the UK? ‘That’s because there are 160 manufacturers of cars, trucks, buses and motorcycles in China,’ replies Hegarty. ‘It was always going to take a long time to work through and then work out which one was going to work best within our group, culturally and with the dealer networks we have an association with. ‘Two things really struck us about Great Wall, though. Firstly it was the passion for quality and the nature of the cars and the company,’ explains Hegarty. ‘The company has a motto ‘‘Improving little by little every day’’ – and they do. Great Wall has a benchmark manufacturer which they want to emulate; and that is a top-end, high-quality company. We were impressed by where the cars sat in the market, and when conversations began between them and us, it was the pickup/SUV market they were sitting in. That was obviously very attractive to us as that is where we traditionally sit if you look at our franchises and our dealers. ‘The second,’ continues Hegarty, ‘was that they were also an export-orientated company and committed in coming to the UK. This is unusual in itself as the Chinese domestic market has a growth that is substantial, but they also realised that for a private company to carry on trading successfully, they needed to look further afield. Great Wall is unusual in China as it is not stateowned, so they are able to be aspirational and look outside of China.’ And they’re aspirational to say the least. Successful too – they have 500 dealers and 800 aftersales dealers across the world. The major European market for Great Wall is Italy, which started in 2006 and has been hugely successful with the Italians taking to the Hover SUV and the Steed pick-up. But the market which Hegarty and his team are most interested in is Australia where more than 1,000 Great Wall cars are being sold a month. You could say that Hegarty is an authority

We asked Paul hegarty whether he was worried about the other Chinese brands looking for market share in the UK. ‘Mg is a brand that is very unlike us because not only are its products different, it is more concerned in the heritage of British engineering at longbridge rather than using the strong image of China as we’re doing,’ he said.

on launching a new brand. ‘There are two fundamental problems when you launch a brand,’ he says. ‘The first is that you make too many assumptions about who’s likely to buy your products, and the second is that you don’t concentrate enough on the things that are really going to make a difference. ‘On the first point, it isn’t up to us to say who is going to buy Great Wall products and direct that market towards our cars. ‘That’s ill-advised. We see little pockets of customers who will be interested in our cars.

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nO SALES TArGETS

‘We don’t have sales targets,’ Paul hegarty says. ‘When you have a manufacturer who is as obsessed with quality as great Wall is, and a management team (in the form of us) which is totally committed to delivering a customer-orientated experience, sales targets do not matter. For us, the volume is relatively insignificant at this point compared to getting great Wall into the market and doing the job correctly.’

Courting China Behind the story ‘On the second point,’ continues Hegarty, ‘we are making sure we are concentrating on the important thing – the buying process. We want to make it easy for people to buy these cars, and how do we make it easy? By having good dealers who appreciate that it is the customers who call the shots in the transaction.’ While Hegarty is concentrating on the traditional ways of doing business and dealers looking after customers, he’s not foolish enough not to embrace the buying habits of modern customers. With many consumers wanting to buy cars online, there is a real opportunity for

manufacturers to capitalise on new ways of selling cars. ‘We haven’t ruled anything out,’ Hegarty says frankly. ‘This is 2011 – not 1985. So we’ve asked ourselves: What makes it easy for customers to buy one of our cars? ‘Anything is possible. But what we end up doing must be complementary to and not undermine what the dealer can do and is doing. Through the dealer, we would make the process of buying a car straightforward – and whatever way it would be it would always be through the dealer.’

We’ve been in China since 1994 when we opened our representative office there. With only two frontiers left for the automotive industry to enter – China and india – we thought it would make good business sense to explore the avenues available with China. at that time there was little in the way of an export market in passenger cars, so we started to look at the truck industry. This sector was interesting, so we set up a production line in Zimbabwe building trucks which was very successful. With most of our customers being in the agricultural sector, and with the political difficulties between farmers and the state, we had to pull out in 2003. This ultimately led us to look at other markets. realising that we needed a massmarket pick-up, we eventually ended up at the doorstep of great Wall in 2001. great Wall was, and is, a leading player in the sector, and a partnership between us and them started immediately. great Wall is especially exciting to me because of its can-do attitude. nothing it seems is impossible to them and they are continually changing and growing.

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feATuRe.

The Cars

Great Wall will launch in the UK with two new cars in 2011 – the first will be a pick-up, the VOleeX C10

WhaT’s most shocking about the great Wall city car is just how good it actually is. any preconceptions of what a Chinese car would feel like are lost the minute you slip into the driver’s seat of the firm’s smallest model, currently dubbed the voleex C10. great Wall is unsure what they’ll eventually name the city car when it’s launched in the UK in the fourth quarter of 2011 but, whatever its name, all potential dealers will want to know is will it sell? and, if you want our honest opinion, that’s a definite quite probably. The C10 has got a lot going for it. Firstly, it’s actually rather good looking. The front grille gives the car real presence on the road and, although it has a shade of Toyota Yaris about it, we think the five-door is eminently striking and stands out in a rather bland sector. When you’re launching a new brand these are the kind of attributes you need. inside it’s a similar story. The plastics quality is impressive and the layout sensible. specification

on this early car includes air-conditioning, electric windows all round and a CD player with UsB and aux in. The cream cloth interior gives the cabin a real light feel, but sadly this is unlikely to feature on the production car. in fact much of the specification could change – importers iM group are still in the process of finalising details. On the move, the driving position is comfortable, the seats supportive and the dash well laid-out. it has a simple feel to it, but a smart one at that. steering, gearbox and pedals are pleasantly light to operate – perfect for a city car – and although it doesn’t feel quite as refined as, say, a vW Polo, it’s more than a match for a hyundai i20. and that’s handy because great Wall says the car will be priced to compete headon with its Korean rivals. The C10 will initially be offered with 1.3-litre and 1.5-litre petrol engines. We tried the larger of the two and, although it won’t blow you away, performance is more than adequate. Pick up was quick and although a little strained at higher rev

ranges, it was punchy enough for town driving. There are no official performance figures yet, but we’d estimate 60mph will be reached in around 12 seconds with a top speed of around 110mph. The 1.5-litre unit produces 105bhp and 138nm of torque – as yet there’s no word on emissions or economy figures, as they’re yet to be tested. however, expect it to return at least 40mpg. There is quite a bit of body roll in the bends – the C10’s height doesn’t help here – but the pay-off is decent visibility of the road. Brakes lack feel, but are up to the job and we found the ride a little firm for some British roads. again, that being said, this is an early car and is likely to undergo some refinements for the UK market. Overall, the C10 is the perfect model to attract buyers to a new franchise. smart looks, an enticing specification and attractive price, coupled with dealers focused on customer service, is close to the magic formula for a new franchise.

InTErIOr

Our test model had a cream cloth interior, but this is unlikely to feature on cars that are eventually sold here.

LOOKS

The C10’s chrome front grille gives the little city car real road presence. it’s got similar overall dimensions to a Yaris.

EnGInES

1.3-litre and 1.5litre petrol engines will be offered at launch. We found the 1.5 impressive.

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second a city car. James Baggott takes them both for exclusive first drives STeeD

COnsTrUCTiOn workers, business owners and the leisure market are all being targeted with great Wall’s initial foray into the UK market – the pick-up steed. hugely successful in italy, the only other european market great Wall has launched in, the steed boasts an impressive specification and work-horse ability for a price that won’t break the bank. Pick-ups are actually a great Wall speciality – currently the maker has five in its range, which are offered in a variety of markets across the world. so it certainly knows its stuff. Parked up next to similar models from one of importer iM group’s other franchises, isuzu, the great Wall steed certainly holds its own in the looks department – especially with the extra ‘bling’ attached to this early model. Climb on-board the road giant and one thing is immediately striking – the steed is big. in fact it feels like a giant american pick-up on the road. Up-front the driver and passenger’s leather seats

are comfortable and behind them three more can sit in comfort. Then there’s the gigantic load space at the back. Our test model had an optional, lockable hard top and it’d have no issues holding buyers’ work kit – or jet-ski apparel in there. inside it feels a little agricultural, but by that we mean built to last. Plastics aren’t of the highest quality in terms of feel, but they’d certainly stand the test of time, however hard a life they have. The dash is basic, but controls are well placed and the read-outs clear. The steering certainly makes it feel like you’re driving a big vehicle – it’s a little choppy and has a few turns to each lock. and we found the gearbox to be equally utilitarian in feel. it’s got switchable two- and four-wheel drive and while we treated it to a little soft-roading, it tackled rutted gravel paths without a sweat. The steed will be offered with just the one engine in the UK when it arrives in late quarter three. That’ll be a 2.0-litre diesel lump that offers power and torque outputs that will be a match

for rivals’ 2.5-litre units. Producing 150bhp and around 310nm of torque, it’s estimated the steed will hit 60mph in 12.5 seconds and go on to a top speed of around 100mph. The six-speed gearbox feels bullet-proof and the ride is decent too. specification hasn’t been confirmed yet, but our test model had air conditioning, a CD player, electric windows and mirrors fitted. Optional extras installed included that hard top for the pick-up, side steps, chrome bull bar and a lockable compartment – all extras dealers will be able to up-sell to buyers. and the bit that’ll excite potential franchise holders the most is the pricing strategy – great Wall plans to be aggressive here and could offer the steed for around £16,000. That would undercut rivals, pulling in punters who’ll then be hooked in further with excellent customer service. although a pick-up is a relatively niche model to launch a brand with, we think the steed’s got what it takes to capture the imagination of buyers.

LOOKS

The steed features several aftermarket extras like the chrome side rails and front bar. Dealers will be able to up-sell these.

BUYErS

leisure users who need towing capability as well as construction workers are likely target buyers.

EnGInE

The 2.0-litre diesel lump will produce 150bhp and around 310nm of torque.

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feATuRe.

Potential dealers MArTIn CHArleS DIreCTOr, BOB gerArD WE HAVE embraced IM Group’s franchises with great enthusiasm over the years, with their attitude to their dealers being very appealing to us. For that reason we’re very pleased to know that IM Group is bringing Great Wall to the UK, as the launch of a new car brand is very exciting. We are an Isuzu dealer at the moment, having done very well in the past with Daihatsu, and we have ended up being fairly near the top of the tree in the IM Group league tables. We are specialists in importing Hondas from Europe too, and we’re hugely looking forward to the Great Wall management team, representing Great Wall in the UK should we clockwise from top, Martin Dalton, natasha be given the opportunity to do so. Judging by Campbell, Paul Hegarty and steve Battle IM Group’s attitudes to customer service and also of the products we sell. We’re only interested its strong relationship it already has with its in building relationships with customers, not dealers, I am sure that the group will make a the hard-sell. Customers interested in Great Wall success of Great Wall in the UK. cars will be more likely to buy them if they feel Great Wall has already shown us the products the dealers are knowledgeable. I’m of the view they’re going to be bringing to the UK, and I have that Great Wall being Chinese won’t be a problem to say they’re very impressive. The key to Great to UK customers. Buyers are not only more Wall being a success in the UK, I think, is dealers’ knowledgeable these days, but they’re also more product knowledge. Here, we’re a small team with open-minded. Times have changed. a lot of knowledge of not only the industry, but

grAHAM HeATHMAn MD, lIFTOn BrIDge CAr SAleS WE ARE hugely excited by Great Wall – the brand, the products and the fact that it will be apart of the IM Group. We are currently a Proton and Perodua dealer, but because they are well established and Great Wall is a new and exciting proposition, we are looking forward to representing the maker – if we are lucky enough to be given the opportunity to. With a clear strategy, IM Group’s good history of looking after and working with its dealers, and some exciting products, we would very much like to be part of Great Wall’s entrance to the UK market. I think Great Wall would complement our Proton and Perodua products because they seem to be a niche brand, but we would push Great Wall a lot in the local area. The badge and colour scheme are all strong, so we think there would be little problem in getting customers interested. We are also based in an area that loves pick-ups – Great Wall’s Steed pick-up not only looks great, but its competitive price should mean it’ll be very popular. [CD]

Now have your say... G

reat Wall is so committed to shaping its franchise into one of the best for dealers to represent, it has decided to let YOU decide what it should look like. Boss Paul Hegarty is determined to make Great Wall a brand that puts not only its customers at the top of the agenda, but it’s dealers too. He believes happy dealers will give customers the best service and wants to ensure that all dealers have a hand in helping him shape the Chinese brand’s franchise offering.

‘It’s only by listening to dealers about what they think is important to offer customers and what they think is important we offer them that we’ll shape the franchise in the right way,’ explained Hegarty. ‘That’s why I wanted to use Car Dealer’s readers as a sounding board for our ideas and canvass their opinion on what makes a franchise work and what doesn’t. We will listen to what they say – this is a dealer’s chance to directly shape the Great Wall franchise and we’ll be taking the feedback very

seriously indeed.’ And, as an incentive for you to take your time to fill out the survey, the maker is offering you an exclusive branded Great Wall jacket. We’ll pick the winner out of the hat at random from one of the survey’s respondents. You can cut out this page, fill it in and send it back to Car Dealer & Great Wall, 2a Church Road, Gosport, Hants, PO12 2LB or fill in the survey on our website by typing bit.ly/ greatwallsurvey into your web browser.

As a dealer what three things do you want most from a manufacturer

Thinking about your customers now, what three things would you say are

relationship to help you sell more cars?

most important for them for you to provide when it comes to sales?

....................................................................................................................................................................

And in terms of aftersales, what three things from a manufacturer would

And again, thinking about your customers, what do you think a dealer

help you do your job better?

should be oﬀering customers in the aftersales department?

....................................................................................................................................................................

...................................................................................................................................................................

....................................................................................................................................................................

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We’re new. We’re Chinese. We’re different. Why? Because we aim to make it as easy for customers to buy our cars as it will be straightforward for our dealers to sell them. If you are looking for a no-nonsense, low cost and potentially lucrative franchise which sees dealers at the heart of its business, we’d love to hear from you. We’re sure you’ll see the difference!

To find out more, please contact Paul Hegarty on 07721 399965 or email phegarty@greatwallmotor.co.uk

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It all adds up to the same thing! Do you want the best warranty on the market? Are you looking for a way to generate more profit? How can you improve customer retention? And how can you increase workshop absorption? What makes you stand out from the next guy? If none of the above applies then please turn the page. On the other hand, why not take a closer look at a brand new initiative from the WMS Group called Safe and Sound. It’s designed to promote the highest level of customer protection so that they can feel confident that the car they are buying is a Safe car and a Sound investment. Nothing new there you may say, but it’s surprising how many dealers do not demonstrate any of the elements of preparation to their customers in order to eliminate any fears or concerns about what to most people is their second largest purchase after their property. Amongst the top five prerequisites for the discerning car buyer is safety, reliability and value, and the Safe and Sound programme demonstrates this to the customer in a visual and practical way, but the programme has so much more to ensure that the customer does not need to leave your forecourt and visit one of your competitors. There are seven elements from safety inspection to a warranty that covers just about everything including wear and tear, hpi check, mileage check, a full rescue and recovery package and there is an independent price verification from the Used Car Expert to prove that your prices are fair. If you can tick all of those boxes you will have happy customers and happy customers will remain your customers and tell other people. WMS are looking to build and appoint a network of specialist Safe and Sound dealerships throughout the UK where they will be recognised as the best of the best and stand apart for their high level of customer care. With dedicated point of sale you will not only look different but you will be different, and you will have a fantastic marketing platform to advertise the fact to millions of potential car buyers. Sir Stirling Moss has endorsed the programme and will be the voice and face of Radio and TV advertising that is planned during the next year. There is additional advertising support from the Safe and Sound and Used Car Expert website (currently 6.5 million hits per year). The new Safe and Sound scheme will only be available to a limited number of dealerships within each territory in order to provide a real commercial advantage so make sure that you don’t miss out. It’s our ambition to make this a household name and the preferred way for a member of the public to buy their next car, safe in the knowledge that they have made a sound decision. Q. Where can a customer buy a Safe and Sound car? A. Only from a Safe and Sound dealer. Great opportunities only come along once in a lifetime and you don’t need a calculator to work that one out. To find out more about the network and profit opportunities as a Safe and Sound dealer, please contact the programme creator Eric Stone Business Development Director on 07789-682502.

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Tel: 0800 197 0321 sales@safeandsoundcars.com www.safeandsoundcars.com 8/4/11 13:01:28

feATuRe.

911 For 2011

Ship-shape and ready for sale

THe STORY SO fAR Of OuR QueST TO TuRn £0 InTO A pORSCHe 911 In AID Of Ben

nusually for us, things are going quite smoothly with our 911 for 2011 challenge. When we signed off last month we had just taken delivery of a Citroen C4 Grand Picasso VTR+ with the economical 1.6-litre diesel engine. Marc Raven, Citroen’s communications boss, had sourced the car for us, and we planned to turn it around for a quick profit. But first it needed a new set of boots. Three years spent on Citroen’s contract hire fleet had taken its toll on the Michelins. Enter Continental. A few phone calls and emails resulted in the tyre firm offering to pay for a new set of Continental ContiEcoContact 5s. This was very generous as the tyres are not only brand new to the market – boasting improved fuel economy, braking distances and noise reduction – but they retail for around £155 per tyre. Continental booked us into the Portsmouth branch of National Tyre Centre, where the rubber was duly fitted by manager Carl Page and his team. ‘These tyres are so new I haven’t got them in stock yet,’ said Page. He and his team set about the transformation while we watched, drinking coffee and tweeting. Within 40 minutes they had finished the job and balanced the wheels. An off-hand mention that we thought the tracking was out resulted in Page rectifying that free of charge too! It might sound obvious but it’s incredible how much better a car drives with new tyres. Not only is the rather wallowy handling now less hair-raising, but the Picasso

Bought for... £0 sold for... £250

Bought for... £0 sold for... £790.03

Our Picasso gets a new set of boots thanks to Continental

Bought for... £985.25 sold for... £2,150

new tyres and a lick of paint means our Picasso is ready to find a new owner stops better too. But in our quest to raise as much money as we can for BEN, we still weren’t satisfied. Years spent on motorways and in office car parks had resulted in the Picasso picking up a few ugly chips and dings. This time ChipsAway offered to help. The smart repair specialists kindly stepped in and collected the car to take to their head office workshops where it got the very best attention. The team tackled three chips and scratches. Usually this would cost around £250 (plus VAT). ChipsAway is a franchise business so its operators are free to set their own prices. However, Ali Ball from ChipsAway head office said a single

job would usually cost around £140. ‘As we were doing three chips on the same car and had the paint mixed up it’s actually cheaper (overall) to do the three jobs,’ he said. ‘More often than not, a customer will ask for a single job to be done but the franchisee will sometimes do a second job while they are there as they do have to wait for the paint to dry so can be getting on with the second job at the same time.’ Now the Picasso’s looking good, we’ve got it up for sale on Auto Trader for £10,495. At the time of writing, we haven’t had any interest, but then things had been going a bit smoothly for our liking! Continental, 01895 425900 ChipsAway, 0800 145 5118

ChipsAway kindly donated their expertise to rid our C4 of some unsightly dents and dings

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Bought for... £2,000 sold for... £5,005

All bought for... £500 All sold for... £2,720

Bought for... £6,000 sold for... £8,250

Bought for... £8,110 sold for... £? In the pot... £860 CarDealerMag.co.uk | 57

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CMY

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FEATURE.

Special report

How did Audi manage to make it so big? Last year was the German firm’s most successful ever, but why?

rom a dusty corner of Volkswagen dealerships to hogging the limelight as their cars ferry the stars around at the Brits, Audi’s meteoric rise to auto industry superstardom was cemented in 2010 – its most successful year ever. The manufacturer delivered a whopping 1.09m cars across the world and raked in the cash. In fact, Audi is one of the most profitable arms of the mighty VW Group which includes (deep breath) Seat, Skoda, VW, Lamborghini, Bugatti, Bentley, Scania and, very soon, Porsche. This year is unlikely to be any different. With 13 product launches planned in the UK it’s got one of the busiest calendars in the car world – and that will only lead to even more new cars leaving showrooms. But how has Audi managed to do it? Well, to find out, we quizzed the experts. ‘The thing to remember is that Audi’s rise to this position has been an ongoing process for 25 years and has cost the VW Group a huge amount of money,’ explained Professor Garel Rhys CBE, an expert on the motor industry and director of Automotive PR. ‘Things began to move for Audi when it widened its model range. Audi found new niches in the market and now other brands are trying to keep up.’ Prof Rhys added that the cars, despite their ‘premium’ cache, are still seen as good value for money, and buyers like the fact they hold their value well. ‘It goes without saying the cars are reliable and well-built and are very much seen as German cars with all the benefits they bring,’ he added. Prof Rhys explained that the shared R&D costs Audi benefits from as it’s part of the VW Group means each car can be sold for more profit than rivals. He explained: ‘Shared R&D costs mean overheads are spread much more thinly than they

are for Mercedes-Benz or BMW. The result of this is usually lowering the unit cost base, meaning larger margins and more profit are achievable. ‘Dealers are very supportive of the brand as they are getting very good margins and consumers realise that Audis are very strong in the used market in terms of residual value and desirability too.’ Car Dealer got in touch with two of those dealers to see what troops on the ground thought the maker’s success could be attributed to. Andrew Shaw, head of business at Boston Audi in Lincolnshire, has worked for the marque for 20 years and says in that time he’s seen its popularity grow ‘tremendously’. ‘The brand has now gained a firm identity and has evolved into a true prestige marque,’ he said. ‘First there was Audi’s

‘‘

strategy of brand separation in the nineties. Next came the product. ‘In the early nineties Audi had only two models, however, since then, they have launched one fantastic new model after another in different sectors of the market. First came the original A4 followed by the A3, A8 and A6. The TT was iconic from launch and the A5, A7, Q5 and Q7 have all been extremely popular. Audi now have the fantastic R8 and the new A1 is already proving to be a hit!’ Fellow Audi dealer Steve Russell, operations director at the Poole franchise, agreed it was the product that had been the real key. ‘To represent a range which has class-leading cars in all the market sectors we operate in gives us real strength,’ he told us. ‘When we have a customer in the showroom, no matter what they need we have a really attractive car to show them.’ [CD]

Audi found new niches in the market and now other brands are trying to keep up

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focus on.

FINANCE Carlyle Finance

Making money work W: carlylefinance.com T: 0844 770 4438

arlyle Finance says it’s probably one of the most forward-thinking motor finance providers in the market, both in embracing the future, and recognising it needs to look after its dealers in order to succeed. The business began more than 40 years ago, but its acquisition by FirstRand Bank of South Africa in 2006 has seen Carlyle Finance experience impressively high levels of growth in the motor industry. ‘We have achieved this through a commitment to being best in class in terms of service, competitiveness and convenience to dealers and customers,’ Carlyle Finance’s CEO Mark Standish tells us. One of the firm’s most appealing attributes to dealers, which has contributed to Carlyle growing so strongly, is its attitude to the motor trade. The company operates exclusively through dealers and has its eyes set only on providing finance to dealers. ‘Every one of the 150 people at Carlyle work solely on the motor trade,’ explains Standish. ‘This means we have a deep understanding and empathy with the motor trade. We have real personal insight into the showroom, the issues regarding unit stocking and the pressures on the bottom line. ’Our job, our expertise, is in working to deliver all the core finance requirements and then

imagining and delivering new ideas, products and processes to help drive footfall, enhanced CSI scores and better retention.’ It seems to be working, too. Carlyle consistently receives satisfaction ratings of above 90 per cent from its dealers – in March alone, dealers rated Carlyle’s speed of service at 89 per cent, the telephone support they received at 88 per cent, payout at 94 per cent, field based support at 93 per cent, and product satisfaction at 89 per cent. It’s easy to see why product satisfaction is so high. Along with its industry leading PPI and GAP insurance products, there are four finance products that Carlyle specialises in. Hire purchase, ‘Breeze’ – which is a lease purchase agreement and funds vehicles up to five years old and terms of up to 48 months – ‘Time Out’ – which allows dealers’ customers to take a one-month payment break during each year of the agreement – and Motor Select which is a no-fee, APR-driven hire purchase agreement. These four products are all accessed through Carlyle’s point-of-sale system called Nexus. With dealers’ lives being far from relaxed, the Nexus technology speeds up the process of preparing quotes, processing applications and print documentation. ‘Technology will play a growing

role in car retailing as the industry moves forward,’ says Standish. ‘Naturally, dealers can rely on us to help them make the most of the changes we are seeing all around us.’ One of the changes that dealers saw all too clearly in 2008 was the slowing down of finance provision due to the financial crisis. However, throughout ‘the crunch’, Carlyle Finance not only sustained its activity, it actually increased it dramatically, with lending virtually doubling between 2008 and 2010. ‘That was because we invested in creating a model which added greater value to the dealer and the customer for the long-term,’ explains Standish. ‘That challenge was to re-energise dealer finance online, in the showroom, face-toface, and in marketing.’ It’s certainly working. Over the past 12 months volumes grew by more than 42 per cent and profitability by 618 per cent, and Carlyle added more than 500 new dealer customers and gained record high levels of dealer satisfaction. ‘A key success was being the first motor finance provider in the post credit-crunch era to finalise a securitisation project,’ says Standish. ‘This has ensured that we have significant funds for future growth, and acted as a key positive barometer for the confidence that investors have in the business model and approach adopted by Carlyle Finance. ‘As well as these key business performance measures, I’m also very pleased with the progress we have made in developing systems, processes, products and services that are now breaking cover and which we believe will help to make point of sale even more attractive. ’It is this type of investment that will be required to meet the needs of customers and secure the long-term future of dealer F&I,’ Standish adds. Carlyle’s commitment in continually growing and launching new products will be seen clearly in the next 12 months. A key focus for the company is leveraging web-based technologies to make it easier for dealers to create a long-term, sustainable relationship with their customers. Developments include ‘My Carlyle Finance Discount Shopping’ which provides all registered users, both consumers and dealers, with access to discounts on high street shopping brands and even discounted fuel at nominated supermarket forecourts. ‘Although MyCarlyle is a major step forward,’

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explains Standish. ‘It’s only the tip of the iceberg as far as our new innovations are concerned. Before the end of the year we would also have taken to market MyCarLocater and Dealer Dashboard.’ The first is a new service whereby every dealer can advertise their stock to customers, through Carlyle’s website that includes finance calculators, interactive videos and a unique search and selection system, while Dealer Dashboard is a ‘one-stop shop’ dedicated dealer area at carlylefinance.com. ‘It will give each dealer detailed performance statistics, commission details and trend analysis to enable them to have the information needed to drive their business forward,’ says Standish. ‘Another Carlyle first.’ So why should dealers use Carlyle Finance?

Standish explains: ‘Energy, insight, integrity and appetite are the hallmarks of the Carlyle Finance dealer dedicated approach. Forward looking, the Carlyle business has grown rapidly through these traits to help dealers maximise the opportunity available from finance, harnessing innovation with service. ‘We have four core values: we believe in our people as individuals, in profitable growth, the customer comes first, and we believe in quality

in all that we do. ‘A big part of our culture of success is due to our fifth and unwritten value,’ Standish adds. ‘We believe in having fun. We like to think we make our work fun for both our employees and our business partners and our experience has shown this is a quality that really sets us apart from the competition. But perhaps the best way to answer this question is to not ask us – ask any Carlyle Finance dealer.’ > CarDealerMag.co.uk | 61

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fOCuS On.

fInAnCe DSG FInAnCIAL SErVICES

Byte-size finance W: dsgfs.com T: 0844 880 0660 (England and Wales), 01698 740 100 (Scot-

t’s fair to say that having the right approach to finance has probably never been so important. Not all customers can pay for cars outright, so they rely on dealers to offer affordable and effective programmes to help with their finances. More importantly, though, dealers should be doing everything possible to make sure their customers are happy. Offering tempting and straightforward financial offers is one of the best action plans to follow. But with many finance providers out there all offering largely the same type of service, it’s understandable that dealers can get more than a little intimidated, let alone confused. This is where DSG Financial services can help. It is in the ideal position to help dealers with financial products by making the whole process transparent. Its products are innovative and effective, and its online offering is so remarkably straightforward. DSG Financial Services sales director Mark Gow has met with many a dealer who has been taken aback by what his company can do for dealers. ‘When we meet dealers for the first time,’ he says, ‘most are generally quite surprised about the range of different areas we can help them with – whether that is increasing finance penetration, generating extra vehicle sales through the range of our niche products, or even helping dealers spend less money on their IT expenditure.’ Dealers are probably surprised because of DSG’s professionalism. They have been helping dealers and have been in the game of selling finance for more than two decades. With experience like that, it’s easy to see why dealers are impressed.

First established in 1989, DSG is one of the longest-serving motor finance brokers and has become renowned in the industry. Only last year fellow finance provider Alphera awarded DSG with their ‘Financial Services Broker of the Year Award’ establishing the company as one of the key motor finance providers both for funders and for dealers. ‘We try to help place any dealer’s out-of-terms business that existing lenders can’t,’ says Gow. ‘What we look to do is to complement any existing relationships that might be in place.’ And the best way of complementing original relationships with other financial products is by offering effective and innovative products that compliment those products that dealers might already have.

‘We specialise in niche products, and our facilities have been designed to compliment dealers existing products they might have with other providers, but with more flexible parameters. This will be maximum advances, longer term PCPs on used cars where we help our dealers get the competitive edge over their competitors, and, as with any broker we look to place their noncompliant business.’ But it’s technology and their expertise in this field that really marks DSG Financial Services out from the competition. With two decades of experience, the company has seen many changes to the motor finance industry due to the rise of technology – ultimately meaning that they are at the forefront. ‘Technology is extremely important to us,’ says

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Gow, ‘because it is the way we give dealers access to our range of niche products. It also allows us to give what we like to dealers. That is a commitment that we will offer complete and utter transparency to the information that is most important to them. This is obviously finance commission, and the customer’s monthly payments.’ Technology is not only important to DSG too. Its Maia Online system makes the process of viewing and choosing finance packages simple, and because it’s free to register, it’s quick and immediate too. Gow says: ‘If you take, for example, our PCP, and low payment calculator this is a piece of technology that a dealer can go on to our website, enter the vehicle’s details, and on the same page we will display numerous PCP and low-payment quotes. The quotes will be ranked in order of expense,

‘‘

With two decades of experience, the company has seen many changes to the motor finance industry due to the rise of technology – ultimately meaning that they are at the forefront.

and will be the ones that offer the best monthly low repayments in the market place. Quotes can be compared all on one screen and this will help dealers give a competitive edge. ‘This is what makes DSG Financial Services stand out so successfully from the competition as the system offers complete transparency.’ With such a strong and successful product range, it would be reasonable to assume that DSG Financial Services is concentrating on the products they have already got this year, and not considering introducing any more. ‘Actually, we are,’ replies an enthusiastic Gow. ‘One of the things we are always looking to do is to constantly, through innovation, add more products which can add value to a dealers’ existing portfolio. So we’re looking to introduce higher value vehicle plans, and we are also looking at introducing a

range of facilities for commercial vehicles in the next 12 months. ‘DSG Financial Services is always looking to add value,’ adds Gow. ‘We strongly believes that there is little point in offering something that dealers can get already through mainstream lenders. So we will try and increase our value to that dealer by generating extra finance commissions, extra vehicles sales, and possibly just adding extra value to their business and helping them reach their targets.’ And adding value to dealers’ businesses seems to be the primary pursuit of DSG. They recognise that in a market full to the brim with finance companies, lenders, and brokers there is little point in presenting a business model and offering products that do nothing new – and that’s what marks DSG Financial Services out. > CarDealerMag.co.uk | 63

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For finance. For insurance. For business growth.

Proactive support and industry leading products. As BMW Group’s multi-brand motor nance company, we’re committed to helping our Dealer and Broker Partners grow their businesses. Offering proactive support, alongside opportunities to generate more income through additional services such as insurance products and a lead management system. Your success is our primary motivation.

For full details on working with Alphera, call now on 01256 747 824 or visit www.alphera.co.uk

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18304_Alphera_Ad_Growth_A4_v4_aw.indd 1

27/10/10 16:00:11

10 16:00:11

focus on.

finance ALPHERA

Time to cash in? W: alphera.co.uk T: 0870 5050 150

here’s never been a better time for dealers to be selling finance. By taking a quick glance at the statistics, you’ll find that point of sale finance is particularly strong at the moment. With PCPs being in vogue, and consumer confidence looking as though it might be turning a corner, dealers should be smiling. That’s certainly the view of Spencer Halil, Alphera Financial Services’ director. ‘The percentage of customers paying for their cars on finance is higher than ever before,’ says Halil. ‘Dealers shouldn’t be afraid of the new regulations and the heightened formality of selling finance. They should embrace it – not shy away. If they embrace it, customers will view the dealer as being professional and trustworthy – and trust is a huge factor that customers rely upon, and can only help customers’ confidence.’ So, how can dealers make the most of this popular trend and not get left behind? ‘One way is adopting a creative and a proactive approach to finance,’ explains Halil. Dealers should be getting their finance provider to prepare strategic short-term, low-rate campaigns, and engaging with their finance company’s marketing resources to help them in producing CCD-compliant advertising. Dealers shouldn’t be afraid of asking their finance company to do something different – if anything, dealers should be challenging them to create a different spin on the products. ‘Finance companies should be willing to get their hands dirty and engaging with their dealers when times are though,’ continues Halil. ‘Dealers and finance companies should be engaged together, and, frankly, if a finance company isn’t willing to engage with them at that level, they should be looking for one that is.’ Another important way dealers can make the most of the current boom is the art of retention. Now is the ideal time for dealers to try and retain their customers, believes Halil. ‘Customers who have just come off the end of an HP agreement, or potentially a PCP agreement, should be reached out to before they go somewhere else.’ But the key to retention is dealers’ relationships with customers. ‘If a dealer keeps in contact with a customer throughout the life-cycle of that contract, they are much more likely to re-deal because they see you as the person for their new car purchase.’

Spencer Halil’s top finance • Get your finance provider to be proactive and help sell you. • Continue relationships with customers throughout life-cycle of finance plans. • When you re-deal a customer, make sure the new plan is attractive. • Invest in simple finance calculators on your website.

Halil’s last recommendation is an online offering. More and more customers are doing their research online – this is dangerous as this research could tempt them away from you. ‘Dealers need to be very canny in their online engagement,’ says Halil. ‘It’s not just about placing a finance deal next to a vehicle, but finance needs to feature more prominently on your sites in general. Simply adding a finance calculator to your site immediately puts you 10 steps ahead of a lot of dealers out there at the moment.’ This type of advice is exactly what Alphera presents to dealers. ‘We strongly disagree with the notion that finance is a can of beans or just another commodity,’ explains Halil. ‘The quality of our beans is what makes you buy, not just the price of them. We differentiate ourselves firstly by being competitive and having a broad range of products, but most of all we offer a consultative approach to your business. ‘I would expect my field sales mangers to be looking at dealers’ stock and performance and

• Explore every opportunity to make finance feature in the dealership – signs and leaflets. • Make sure your finance quotes are attractive; use a PCP quote on a desirable car. • Offer finance on used cars as well. • Put a finance quote on the visor hangers of EVERY car.

saying “None of these cars have a finance offer on them. Why don’t I work with you and put together some offers and some adverts?” They will give dealers the basics of how to do that, support them in the process, and show them how to do it in the future. We will supply legal content and advice free of charge, too.’ Alphera’s products range from a hire purchase plan, a lease purchase, contract hire and finance lease, and commercial finance, to the popular PCP called Select. >

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fOCuS On.

fInAnCe PrOTECT YOUr PAYMEnT

Serve and protect W: protectyourpayment.co.uk T: 0845 644 4207

hen buying a car on finance, perhaps the last thing on customers’ minds is payment protection. But, if that customer becomes sick or unable to work, they can falter on the payments for their finance. This is where Protect Your Payment from the Marmalade group comes in. It is a simple policy for dealers to market and customers to opt for, but the rewards are essential. The policy covers customers who become too ill to work, have an accident or become unemployed for more than 30 days, and protects the cost of a car loan or vehicle finance payments for 12 months. The Protect Your Payment policy is also underwritten by Brit Insurance Limited and is administered by 3XD Limited – both trusted names.

Sounds simple, doesn’t it? Well, it’s even simpler for dealers to market and make a quick bit of dosh on it too. ‘All dealers have to do,’ explains Nigel Lacy, ‘is market the leaflets in their showrooms and register their dealership with us. It’s free for dealers to register and to display our leaflets, and all customer have to do is tell us where they bought their car from when they apply. As long as the dealer is registered with us, we will send the commission straight through to them. It’s very simple.’ Simple indeed. ‘Dealers receive 25 per cent from Protect Your Payment of the monthly premium paid by the customer throughout the life of the policy, and for the first year Protect Your Payment will give dealers the premium once the second direct debit

has gone through,’ says Lacy. In other words it’s a year upfront. An example would be a customer takes out finance of £300 per month over 36 months, the PPI premium would be £17.85 per month, meaning the dealer would receive £160.65 commission. It’s not often dealers can get so much for doing so little.

Earn income from Payment Protection again - with

Protect Your Payment You advertise the leaflets, we do the rest

Accident, Sickness and Unemployment PPI at just 5.95% of monthly payment

Commission Example: £300 instalments over 36 months PPI premium is £17.85 p/month x 36 Dealer commission £160.65*

Dealer’s commission is 25% of premium

pyp

www.protectyourpayment.co.uk/dealer

The policy is provided by 3XD Limited, a leading provider of payment protection products * Commission of £53.61 for the 1st year will be paid upon receipt of 2nd premium, thereafter £4.46 per month from month 13 for the duration of the policy. Protect Your Payment is a trading style of Provisional Marmalade Limited, an Appointed Representative of 3XD Limited, which is authorised and regulated by the Financial Services Authority number 469379. This can be verified online by checking the FSA’s register at www.fsa.gov.uk or by telephoning the FSA on 0845 606 1234

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FIrST rESPOnSE FInAnCE

Flexible friends W: firstresponsefinance.co.uk T: 0844 873 0809

t’s a good time to be working for First Response Finance – and that means it’s a great time to be working with them too! The finance provider has recently been classed as ‘outstanding’ in the Sunday Times Top 100 Companies To Work For list, achieving two out of a possible three stars. First Response won the award in recognition of providing an outstanding working environment for its employees, and treating its workers development as a key priority. It’s a big accolade, and means that First Response is also a great finance provider for dealers to work with too – they’re transparent and flexible in the service they provide. ‘Most of our competitors use a credit score, but we don’t,’ explains Jim Meldrum, First Response’s regional sales manager. ‘What would normally happen at the point of sale, the dealer would fill out a

form and the finance company would make a decision on whether or not they would finance the customer based on their credit score. ‘It’s not like this with First Response. When we receive an application, we assess the risk involved with the deal, then call the customer and discuss the application with them. This ranges from why they need the car and what are they going to be using it for, to asking customers about their credit history,’ says Meldrum.

Having to do an ‘interview’ during the exciting process of buying their new car might sound a little too formal, but it isn’t. In many ways, it makes perfect business sense for the dealer – the customer drives away happy knowing they’re being looked after properly. First Response is also unique in recognising that dealers do not always encounter customers who have impeccable credit histories. They can help these customers who would normally be turned away by other finance providers and high street lenders. ‘We deal with a lot of customers who have already gone through the mainstream, high street lenders, and have been refused by these lenders because the customers might have a bruised credit history,’ says Meldrum. ‘The problem here is that a piece of paper outlining the customer’s credit history doesn’t show the full-story. ‘We believe that bad things happen to good people and that just because a bad thing has happened to a customer in the past, it doesn’t necessarily mean it will happen in the future. We look into and try and understand why a customer has this history, and if we have a better understanding we can then assess the true risk. ‘We specialise in helping customers who have had financial problems in the past. Even when a customer subsequently experiences financial problems after we’ve started working with them, we will support the customer, using repossession as the very last resort. ‘We have this attitude because we recognise that customers buy a car for a reason – because they need a car. There is no point in repossessing a car when it is not necessary, so dealers should reassure their customers that, if financial difficulties arise, we will do as much as we possibly can to help them out of that situation. Repossession is always the final, and last, resort.’ So, what products are there? ‘Just the one actually,’ says Meldrum. ‘It’s a hire purchase product which is where most of our business is, and it is a competitive product in the non-prime market. We also have other insurance products including a payment protection plan, a life insurance policy, accident and sickness policies, and GAP insurance. These are all important to customers because they cover the important risks, and are all competitively priced.’ [CD] CarDealerMag.co.uk | 67

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Datafile COnTenTS.

Right click 70 Auctions 71 The Statistics 72 SMMT sales figures 73 Alex goy 74

Suppliers guide 75 James Litton 76 Trader directory 77 Shares 78 Sub-Prime Time 82

Advice n Data n Analysis n Facts n Figures n Comment

Dealers: Save £10k a year! SMMT reveals how you could slash your bills and go green at the same time

n partnership with the RMI and the Carbon Trust, the SMMT has published the Dealer Energy Efficiency Guide which promises real cost-saving solutions. Working with 30 dealerships, the guide shows how dealers could save up to £10k per year, 10 per cent of which with zero cost, plus save a further 25 per cent with ‘modest investment’. Car Dealer was at the launch of the guide to bring you the numbers.

SeVen-STep plAn The SMMT’s key recommendation is a seven-step plan to help dealers take action and address energy use. Dealers should appoint an ‘energy champion’ by identifying a staff member to drive and oversee energy management. An ‘energy policy’ should be written which is signed by management and communicated to employees. Dealers should ‘monitor and target energy use’ by regularly reading meters, plotting their consumption and identifying waste. Regular energy ‘walkabouts’ should be made too, and energy saving measures should be ‘implemented’. Dealership staff should also be fully aware of the action plan, and customers should know too – objectives and successes should be communicated to the public.

fIVe TOp ReCOMMenDATIOnS The SMMT has five top recommendations on saving energy. They are simple, but can help dealers unnecessarily putting their hands into their pockets every month. The first concerns lighting – when bulb and strip lighting blows, either replace them with more efficient equivalents, or invest in LED

lights. Dealers should consider replacing hot-air heaters with radiant heating in their workshops, and insulate pipework, valves and flanges. The monitoring of energy use is a top recommendation, too. Realistic targets for reduction should be made, and dealers should be sure to act on any findings. The controls of heating, electrical, hot water and lighting systems should all be set correctly. It sounds obvious but does the air con have to be on overnight, for instance? Lastly, think about compressed air. Dealers should ensure that air compressors are switched off overnight and regularly maintained.

nO COST MeASuReS The 30 dealerships that were surveyed for the guide ranged from small independents to large franchises. It was found that by resetting air con settings on dealers’ sites saves £6k a year, resetting the showroom’s boiler can save £8k a year, and reducing showroom lighting levels can save £775 a year. All of these cost nothing to implement, but can save you a wedge of money every year.

CASe STuDIeS In 2007, Issac Agnew Group decided to drive down its energy costs. By appointing an energy representative who conducted showroom walkabouts, and monitored electricity usage. By 2010 the group had saved £170k a year! Ford has

also decided to implement energy saving in its dealerships – it’s encouraging its dealer network to install LED lighting. LED rafts use up to 60 per cent less energy, and over a six-year period a single raft can deliver an estimated reduction of two tonnes of CO2 emissions. Meanwhile, Mercedes-Benz of Watford has embraced new lighting techniques. Part of its ‘green dealer’ project saw the dealership only light the cars in the showroom at night, instead of the whole showroom. It has reduced costs and attracted customers. ‘The retail side of the motor industry is still at the beginning of saving energy,’ said Paul Everitt, SMMT chief executive. ‘But one of the most exciting things we found when we started this initiative was the good number of dealerships who had already begun in this area and had made a lot of progress. ‘But what we found was that their methods were not packaged in a way that every dealer could get access to them and start saving money, hence our efforts in this guide. We are also looking at other ways dealers can move forward in addressing energy efficiency, areas such as water usage and waste management.’ To download the full guide, log on to smmt.co.uk/dealerenergyeﬃciency CarDealerMag.co.uk | 69

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RIGHT ClICk.

..in association with GForces

The true value of social loyalty

GForces’ Tim Smith explains why social media is gathering momentum as a marketing force

‘Scott Monty’s message, as you can imagine, was clear and informative.’

cott Monty is an interesting guy. As well as being the Global Head of Social for Ford Motor Company, he is also a classics major, holds a fascination with psychology and human behaviour, is a husband, father and a rather nice guy. I don’t know him, but I know a lot about him. He has more than 50,000 followers on Twitter and writes one of the most informative blogs on the automotive industry and social media. He popped up to speak at Google’s recent Think Gearshift event as a headline speaker. His message, as you can imagine, was clear and informative. For the past couple of years social media has been gathering momentum as a marketing force within the automotive industry, with Ford leading the pack. His case for the importance of social media was not to do with return on investment, lead generation or direct response; his case was simply the human desire to be acknowledged. Ford practise this approach via their Ford Story (fordstory.com) website, their Facebook strategy and numerous other outreach projects. They are all designed to give customers access to what is perceived as a global mega-organisation. The example of Alan Mulally, Ford’s CEO,

actually contacting a prospective Ford buyer was brilliant. The story goes, a GM customer asked Monty via Twitter whether he could get Mulally to call him and help him make up his mind about buying a Ford. He did! It was a supreme example of social media at work. This was one the purest expressions of accessibility corporate culture could have exhibited. If the guy at the top with the One World, One Ford vision message can be bothered, surely the company is pretty cool. In fact, this principle used to be practised by many other business leaders including the legendary Jack Welch, CEO of GE, who often used to get a phone call from a customer put straight through to him, just so he knew what problems they were facing with his 3m-employee corporation. Social media is as much about acknowledging your customers as it is keeping in touch with

them. The whole issue the motor retail industry faces is that it has put social media well and truly in the marketing box, meaning every dollar spent on it comes out of the marketing budget. Eighty-three per cent of the top 200 dealers in the UK are practising some form of social media, predominantly funded as a marketing activity, but very few, if any, are using it as an integral form of their contact strategy. I think it’s time for an adjustment to this mentality. Social media will be core to a motor retailer’s contact strategy as it will enable them to maintain a dialogue with their customers outside of the typical buying hotspot. After all, if you can generate some kind of loyalty from your customers, they are easier to retain and keep happy than to acquire all over again. Perhaps that is where the true return on investment with social media will lie.

‘Social media will be core to a motor retailer’s contact strategy.’

GET SOCIAL . GET REWARDING . GET LOYALTY . BE LOVED FOR THE NEXT GENERATION LOYALTY SCHEME VISIT W W W. I L O V E M Y D E A L E R . C O . U K 70 | CarDealerMag.co.uk

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AuCTIOnS.

sales executive of the year celebrates bit.ly/salesexec

Buying online is still a Henstock step too far for many

aucTion sTaTions

Potential purchasers are happy to research cars on the internet, but stop short of sealing a deal

otorists lack the confidence to buy a car online, new research by Manheim Auctions has shown. The firm has found that despite spending an average of 18 hours online researching a car before they make a purchase, taking the plunge and buying online is still a step too far for customers. Two thirds of motorists admitted they wouldn’t have the confidence to buy online, while 25 per cent said that although they’d be happy to find a car and agree a price online, they wouldn’t part with any cash until they’d seen it. Craig Mailey, marketing director

Values rising BCA says average values rose marginally in February, largely due to a richer model mix in the nearly-new sector. Its Pulse report shows that values across the board increased by £11 compared to January’s figure to reach £5,985 and are at the highest point recorded since December 2009. Performance against CAP Clean dropped by over a point to 97.4 per cent, down from the 98.6 per cent achieved across the board in January. Year-on-year, February 2011 was ahead of the same period last year by just £26 – less than half of one per cent.

at Manheim Auctions, said: ‘There is no question that the internet has become the primary research tool for motorists looking for a car. But when it comes to actually buying online, without seeing the vehicle first, consumers are just not ready to take the plunge. ‘Motorists are wary and despite the rise in the number of used car websites, we’ve found that consumers are not confident enough to make this sort of purchase online. ‘As a search and research tool the internet is second to none and there’s a wealth of information out there. As well as the traditional car websites, motorists can also search the Manheim Auctions website or access the mobile version on their smart phones to see what vehicles are coming up for sale. It’ll help consumers to get a feel for the used car market as a whole and pick up a bargain.’ The research also showed that motorists spend hours trawling the internet researching their next car, looking at the best deals on the market, comparing makes and models on a variety of websites and checking out insurance, tax brackets and fuel consumption figures. More than half of motorists even admitted to surfing car websites just for the fun of it.

Hospice to benefit from G3 charity partnership g3 remarketing has pledged to donate £1 per vehicle sold through its auction to the Prince of Wales hospice charity. each week, the online vehicle disposal company auctions more than 400 vehicles direct from fleet, financing, manufacturer and leasing companies online from its base in Castleford, West Yorkshire. Matt Dale, director, said: ‘after personally experiencing the fantastic work that the Prince of Wales hospice in Pontefract does, there was no difficult decision to make when deciding what charity partnership g3 would take. ‘We hope that our regular donations will go some way to help other families at particularly difficult times.’

Why it’s so crucial to value used cars correctly

ith used car retail activity remaining the battleground for dealer profitability, I make no excuses for returning to a favourite theme – the continuing importance of an accurate appraisal of part-exchange vehicles. The ability to value a used car is always essential – particularly in the current economic climate. Appraisal is the key element of valuation, whether you end up valuing the vehicle from a guide or by your own market knowledge, if you are armed with an accurate appraisal you have everything you need. BCA holds training events for motor retailers, advising them over a half-day, structured course on the best way to instil good practice into their part-exchange appraisals. Good practice starts with routine, so always walk around the car you are appraising in the same way and complete the 20-point check in the same order. We recommend starting with the bonnet release and checking full lock on the steering, walking around the off-side to the rear bumper, then up the nearside finishing with the windscreen and roof. Remember to have a final walk around and check badges, logos and number-plates match – not just the registration number, but are both carrying the mark of the original supplying dealer for example? Unmatched plates might not mean anything or could be a sign of repaired accident damage. Check the VIN – that can give you a wealth of information. Take your time and don’t be hurried. Flitting from one part of the car to another will increase the chances of missing something. It’s good practice to take the customer with you on the appraisal, but never openly criticise the car as you are carrying it out. Do the appraisal as soon as possible in the sales process. Make sure you test-drive the vehicle and always ask to see the documents. Do the task professionally and you have every chance of getting the valuation right first time and doing a deal that will profit the business and keep your customers happy.

‘If you are armed with an accurate appraisal you have everything you need.’

Who is Simon Henstock?

simon is UK network operations director for BCa. visit british-car-auctions.co.uk or call 0845 600 6644. CarDealerMag.co.uk | 71

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DATA FILE.

Thestatistics Used Cars n Top 10 Searches n SMMT Sales Data

The most searched-for cars LAst month on..

Netcars.com 1 Ford Focus 2 Vauxhall Astra 3 Ford Fiesta 4 VW Golf 5 Audi A3 6 BMW 3 Series 7 Land Rover Discovery 8 Vauxhall Corsa 9 Audi A4 10 Land Rover Freelander

Motoring.co.uk 1 Renault Clio 2 Vauxhall Corsa 3 Ford Focus 4 Ford Fiesta 5 Mazda 2 6 Seat Ibiza 7 Citroen C1 8 Vauxhall Astra 9 VW Polo 10 VW Golf

ContractHireAndLeasing.com 1 Mercedes-Benz C Class 2 Audi A5 3 Mercedes-Benz E Class 4 BMW 3 Series 5 Audi A3 6 VW Golf 7 Audi A4 8 Nissan Qashqai 9 Audi TT 10 BMW 1 Series

March figures reveal a mixed picture M

arch saw new car registrations fall by 7.9 per cent, the latest figures published by the SMMT reveal. A total of 366,101 new 11-reg cars were registered in March, representing a 7.9 per cent fall on 2010. March represents the ninth month to have seen registrations fall. However, March’s figures were higher than those predicted by the SMMT – up 1.4 per cent. Also beating the SMMT’s predictions were quarter one’s figures. While registrations were down 53,212 units or 8.7 per cent to 558,336, this figure was higher by some 11,000. Registrations in quarter one fell 8.7 per cent to 558,336 units. The 2011 market is forecast to drop five per cent to 1.93m. Paul Everitt, SMMT chief executive, said: ‘The UK saw 366,101 new cars registered in March, demonstrating sustained demand in what is traditionally the biggest month of the year.

New car registrations fell again, but numbers were ahead of expectations ‘Despite a dip versus 2010, the market remains on course to meet SMMT’s forecast for the year with motorists buying increasingly fuelefficient and low-emitting vehicles across every segment.’ SMMT figures also reveal that fleet and business registrations have shown ‘modest growth’ in the first quarter, while private demand has weakened post scrappage scheme. However, the SMMT says the decline in private demand was in line with industry expectations. March also saw average new car CO2 emissions fall to

‘‘

140.3g/km in quarter one, a 3.4 per cent reduction on a year ago. Diesel car volumes rose by 7.9 per cent in quarter one, as their market share rose from 41.1 per cent to 48.5 per cent, while alternatively-fuelled cars achieved a record 1.4 per cent share of the total market in the quarter, after volumes rose by 27.3 per cent. The Ford Fiesta regained its number one place in the sales figures with 19,676 registered in March, and the Ford supermini is the new leader in the year-to-date sales with 27,924 units.

Despite a dip versus 2010, the market remains on course to meet SMMT’s forecast for the year

Spring has sprung and UK buyers are getting sporty UK buyers are getting ready for a sporty spring with more than one in 10 drivers looking for a sports car, says Autotrader.co.uk. Searches have grown month-on-month by 75 per cent for the Dodge Viper; 50 per cent for the Bugatti Veyron; 31 per cent for Lotus models; and 25 per cent for the Pagani Zonda.

Matt Thompson, group marketing director for Auto Trader, said: ‘Brits are renowned for their attraction to the speed and performance associated with sports cars and ahead of an exciting spring sports season, both on and off the track, it’s great to see this passion is still alive and well.’

72 | CarDealerMag.co.uk

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Ford grabs top two sales spots

THE Ford Fiesta has regained its position as the nation’s best-seller, lastest SMMT figures reveal. More than 19,600 units were sold in March. The Ford Focus followed in second with 14,370 sales, and sales of 13,556 gave the Vauxhall Corsa third place in the March table.

Fourth place was earned by the Vauxhall Astra with 10,704 sales, while February’s sales winner, the Volkswagen Golf, dropped to fifth place with 10,282 sales. The Vauxhall Insignia was the third griﬃn-badged car to get into March’s top 10, registering

SMMT sales data March/year to date

7,826, while the VW Polo and the Peugeot 207 came in seventh and eighth with 7,634 and 7,189 sales respectively. The Mini returned to the top 10 with registrations a little over 7,040, and the BMW 3 Series rounded off the table with 6,103 sales.

aLfa feB 66.35%

chrYsLer feB -51.74% Figures supplied by sMMT

March 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 Perodua Peugeot Porsche Proton renault saab seaT skoda smart ssangyong subaru suzuki Toyota vauxhall volkswagen volvo Other British Other imports Total

2011

288 2,269 223 20,736 165 17,987 0 2,514 125 12,921 0 0 0 0 8,509 52,829 11,021 0 11,337 47 2,951 335 10,007 10,083 1,734 55 6,981 14,776 8 9,319 2,503 16,951 104 18,597 884 98 14,717 1,766 7,251 6,421 1,116 4 742 4,968 16,183 41,578 28,069 6,585 139 205 366,101

% market share

0.08 0.62 0.06 5.66 0.05 4.91 0.00 0.69 0.03 3.53 0.00 0.00 0.00 0.00 2.32 14.43 3.01 0.00 3.10 0.01 0.81 0.09 2.73 2.75 0.47 0.02 1.91 4.04 0.00 2.55 0.68 4.63 0.03 5.08 0.24 0.03 4.02 0.48 1.98 1.75 0.30 0.00 0.20 1.36 4.42 11.36 7.67 1.80 0.04 0.06

Year to date (YTD) 2010

% market share

2011 % Change

287 1,364 230 19,136 175 16,478 14 2,729 259 13,025 1 51 2 169 10,709 62,075 14,076 1 15,241 6 3,054 558 12,277 10,514 1,372 63 10,384 13,943 52 7,919 2,254 14,780 163 21,288 930 153 20,919 1,158 6,386 6,754 1,474 102 1,090 5,430 18,033 43,119 29,209 7,683 127 167 397,383

0.07 0.34 0.06 4.82 0.04 4.15 0.00 0.69 0.07 3.28 0.00 0.01 0.00 0.04 2.69 15.62 3.54 0.00 3.84 0.00 0.77 0.14 3.09 2.65 0.35 0.02 2.61 3.51 0.01 1.99 0.57 3.72 0.04 5.36 0.23 0.04 5.26 0.29 1.61 1.70 0.37 0.03 0.27 1.37 4.54 10.85 7.35 1.93 0.03 0.04

0.35 66.35 -3.04 8.36 -5.71 9.16 -100.00 -7.88 -51.74 -0.80 -100.00 -100.00 -100.00 -100.00 -20.54 -14.89 -21.70 -100.00 -25.62 683.33 -3.37 -39.96 -18.49 -4.10 26.38 -12.70 -32.77 5.97 -84.62 17.68 11.05 14.69 -36.20 -12.64 -4.95 -35.95 -29.65 52.50 13.55 -4.93 -24.29 -96.08 -31.93 -8.51 -10.26 -3.57 -3.90 -14.29 9.45 22.75 -7.87

401 3,148 317 32,821 253 30,290 0 3,763 199 20,546 0 2 0 0 12,340 80,028 17,027 0 17,343 93 4,034 459 14,670 13,264 2,276 133 10,452 22,632 18 12,106 3,574 25,006 153 28,491 1,354 157 20,391 2,378 10,471 11,172 1,489 7 1,006 6,857 23,696 66,701 46,679 9,441 317 381 558,336

%market share

0.07 0.56 0.06 5.88 0.05 5.43 0.00 0.67 0.04 3.68 0.00 0.00 0.00 0.00 2.21 14.33 3.05 0.00 3.11 0.02 0.72 0.08 2.63 2.38 0.41 0.02 1.87 4.05 0.00 2.17 0.64 4.48 0.03 5.10 0.24 0.03 3.65 0.43 1.88 2.00 0.27 0.00 0.18 1.23 4.24 11.95 8.36 1.69 0.06 0.07

2010

%market share % Change

388 1,962 309 29,985 282 24,837 20 4,341 398 20,675 1 100 2 220 16,433 94,118 20,070 1 25,520 19 4,361 818 20,673 13,836 2,107 107 14,833 20,037 82 11,027 3,192 22,631 249 33,200 1,496 270 30,321 1,370 9,582 11,182 2,234 133 1,377 7,269 28,818 67,072 51,308 11,707 288 287 611,548

0.06 0.32 0.05 4.90 0.05 4.06 0.00 0.71 0.07 3.38 0.00 0.02 0.00 0.04 2.69 15.39 3.28 0.00 4.17 0.00 0.71 0.13 3.38 2.26 0.34 0.02 2.43 3.28 0.01 1.80 0.52 3.70 0.04 5.43 0.24 0.04 4.96 0.22 1.57 1.83 0.37 0.02 0.23 1.19 4.71 10.97 8.39 1.91 0.05 0.05

3.35 60.45 2.59 9.46 -10.28 21.96 -100.00 -13.31 -50.00 -0.62 -100.00 -98.00 -100.00 -100.00 -24.91 -14.97 -15.16 -100.00 -32.04 389.47 -7.50 -43.89 -29.04 -4.13 8.02 24.30 -29.54 12.95 -78.05 9.79 11.97 10.49 -38.55 -14.18 -9.49 -41.85 -32.75 73.58 9.28 -0.09 -33.35 -94.74 -26.94 -5.67 -17.77 -0.55 -9.02 -19.36 10.07 32.75 -8.70

CarDealerMag.co.uk | 73

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DATA fIle.

Alex Goy

aLL TorQue

Why do small ads tell me absolutely nothing?

t’s time for an eight-year relationship to end. And I need some help cutting the chord. You see I’ve been driving a Lotus Elise around this month and I’ve learned that they’re everything I’d hoped they would be. So I have to have one. In all seriousness – all cars should be like the Lotus. It was just as good as I’d been hoping it would be. So, I’ve been hunting for one in all the usual places – Auto Trader, Pistonheads, etc – but I can’t find one that suits. Do I go with the mental R? Or the slightly more subdued S? Who knows, it’s early days yet. But I’ve a bigger problem. You see, classified ads tell me nothing. At all. Not just private ads (though some of them are pretty ropey) but a few of the trade ads I’ve found are equally shocking. While it’s wonderful to know that you’ll offer me finance on a new car (which I’m sure is very reasonable indeed), I’d quite like to know how many people have owned it. Or maybe state, honestly, whether it’s been parked in a wall at some point in its life. Because when I decide to head up to various bits of country to have a look at one I don’t want to travel for three hours to find out that it’s been fully garaged, apart from a brief spell in a hedge. When someone’s searching for something a bit... special (i.e. not a Corsa – which you can, at the time of writing, find 9,158 of on Auto Trader) there’s no need to point out that there’s finance on tap – they know that’s going to be the case anyway. There may be a better way. When looking at a dealer ad I want to know how the car came to them – this may be a shot in the dark, but why not see if the previous owner can pen a few words about it? And, if there are any flaws, point them out. Travelling to see a pup isn’t fun, and do you really want to be ‘those guys’ who mislead people? Take a moment to empathise with customers (especially those who aren’t just looking for ‘a car’) – they’re looking for their transport for the next few years (or, in my case, decade). I don’t care that it’s a ‘future classic’, I know that. I want to know if it’s knackered. Help a brother out, eh?

‘When looking at a dealer ad I want to know how the car came to them.’

Who is Alex goy?

he‘s a motoring journalist with a lot to say. he also produces a brilliant podcast. Check it out by typing bit.ly/alexgoy into a browser

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W: zype.co.uk t: 0118 912 2256 E: donna.barradale@zype.co.uk info: easy to use, effective video tool for dealers. Turn web browsers into customers with live and personalised video.

W: british-car-auctions.co.uk t: 0844 875 3480 E: liveonline@bca-group.com info: BCa offers more vehicles and more ways to buy them with physical sales, live Online and Bid now/Buy now.

W: karcher.co.uk t: 01295 752142 E: auto@karcher.co.uk info: high pressure cleaners, vacuums, parts cleaners, floor cleaners, sweepers and carpet cleaners – for automotive needs.

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W: autotrade-mail.com t: 01243 523000 E: sales@autotrade-mail.com info: UK’s leading online real time used-car trading network. The original and the best. Call for your free two week trial.

W: gforces.co.uk t: 0845 658 9290 E: info@gforces.co.uk info: Multi award winning car dealer website design and digital marketing. Find out why we keep winning awards.

W: intelegent.co.uk t: 0844 811 7273 E: info@intelegent.co.uk info: Full telephone answering and service booking with full recording of every call. Overflow calls or full reception service.

W: badgemaster.co.uk t: 01623 723112 E: customerserivces@ badgemaster.co.uk info: Call for advice, brochure, samples, fixed price quotation and our no quibble best price guarantee.

W: connect-hr.com t: 0333 700 3030 E: info@connect-hr.com info: safety Management systems, risk assessments, Policies, Training and advice from as little as £195 per day.

Webzation

W: webzation.com t: 0845 2260503 E: info@webzation.com info: Web enable your showroom sales process. lead generation, online finance and product videos. see why dealers are choosing us.

feATuReD lISTInG: car DeaLer cLUB FrEE lEGAl ADViCE WitH EVErY CAr DEAlEr sUBsCriPtiOn CAR DeAleR ClUB gives dealers of all sizes access to free legal advice from our motor trade lawyers worth £199. Members get a copy of Car Dealer Magazine every month as well as access to a host of discounts from motor trade suppliers – all for a paltry £24.99 annual subscription! This oﬀer is only available to new subscribers, so if you haven’t renewed your subscription then you need to do so to gain access to this very special oﬀer. Signing up is simple. Type CarDealerClub.com into a web browser

CarDealer.Club to be taken straight to the section on our website where you can find out more and join up! Alternatively you can send us a cheque for £24.99 made payable to Blackball Media ltd to Car Dealer Club, Blackball Media, 2a Church Road, Gosport, Hants, PO12 2lB and we’ll send you details of your Car Dealer Club membership by return post.

To have your details included here call (023) 9252 2434 and ask for Suppliers Guide listings

74 | CarDealerMag.co.uk

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s guide

If you’re looking for a motor trade supplier you can find the details of selected companies here

mini test: Nissan Micra

Display Products

Cleaning Products

Car dealer says HHHHH

Portfolio Display

Drymotive

Online Advertising

Valeting Services

HugoFox.com

AutoKlean

W: portfolio-display.co.uk T: 0845 8543210 E: sales@portfolio-display.co.uk Info: Automotive display products, pricing units, car-top display, flags and poles, key tags, tax discs, stickers and keyrings.

Well, the new Micra is not our cup of tea, but then we’re not 55-year-old women. This car is aimed at our mums and if you put one of them in the driving seat we’re sure they would love it. The controls are light and easy to use, it’s great to drive around town and comfortable too. We found the cabin layout a bit fussy, but the fact it’s cheaper than all its main rivals to buy and the cost of ownership has been dramatically cut will do it a lot of favours. The manufacturer believes 70 per cent of buyers will be existing owners. We say it’s another sales winner.

W: hugofox.com T: 01635 291271 E: team@hugofox.com Info: This up-and-coming new kid on the block offers 6 months advertising (unlimited number of vehicles) for £49. Essential.

Price: £9,250, tested in Issue 36

W: drymotive.com T: 0845 8540057 E: sales@drymotive.co.uk Info: Suppliers of waterless car cleaning products that are quick and easy to use and produce an amazing quality finish.

W: autoklean.co.uk T: 0845 408 2975 E: dave@autoklean.co.uk Info: Competitive pricing, a service made to your requirement and all chemicals and equipment to carry out the best job.

Insurance

Auctions

Key Tags

Vehicle Remarketing

Automotive CRM

Think Insurance

HBC

I B Scott

mfldirect.co.uk

Contact Advantage Limited

Finance

Advertise Here

Warranties

mini test: KIA SPORTAGE

First Response

Your company name

WMS

Car dealer says HHHHH

W: think-ins.co.uk T: 0844 573 2850 E: enquiries@think-ins.co.uk Info: Trade insurance experts. Road risks and/or combined. Instalments. 10% new client discount. Liabilities. Up to 75% bonus discount.

W: frfl.co.uk T: 0115 946 6370 E: Visit bit.ly/firstresponse Info: We always encourage our returning customers to visit the same dealer for their next car leading to Many Happy Returns!

W: hbc.co.uk T: 01268 696444 E: info@hbc.co.uk Info: The safest hands in salvage, HBC are prompt & efficient and operate in accordance with current industry guidelines.

W: Your website address T: 023 9252 2434 (that’s us!) E: adverts@cardealermag.co.uk Info: You’re reading this and so could thousands of dealers too! A slot like this is £49 per month or £29 per month if booked for the year.

W: keytags.co.uk T: 0870 2406359 E: sales.ibscott@btconnect.com Info: Plastic key tags that can be used with an ordinary Biro! Supplied with metal rings or plastic ties.

W: wmsgroupuk.com T: 0844 477 4909 E: sales@wmsgroupuk.com Info: Experience, expertise, leadership and innovation. The nation’s favourite. The dealer’s preferred partner.

Finance

These Listings Work

Online Advertising

DSG Finance

More Sales For You

Netcars.com

W: mfldirect.co.uk T: 0870 6000 288 E: sales@mfldirect.co.uk Info: For the largest selection of low mileage, single owner, dealer maintained vehicles available to the UK trade see mfldirect.co.uk

THE two-wheeldrive £16,645 ‘1’ specification is the cheapest Sportage money can buy. But that doesn’t mean it’s short of equipment: 16-inch alloys, electric windows, electric mirrors, day time LED lights, fog and cornering lamps, Bluetooth with voice recognition – the list goes on. The 1.6-litre petrol is pretty decent to drive. It’s not hair-raising, but its 133bhp and 165Nm of torque delivers adequate grunt. It’s got well-weighted steering and a precise gearbox.

W: itsabsolutelyfree.co.uk T: 0844 880 0660 E: absolutely@dsgfs.com Info: Give your customers an improved online experience by presenting finance options that they can configure themselves.

W: Your website address T: 023 9252 2434 (that’s us!) E: adverts@cardealermag.co.uk Info: The Suppliers Guide helps dealers find the companies they need to help them improve their business. Make sure you’re here.

Finance

Warranties

Finance

Advertise Here

Black Horse

Car Care Plan

Duncton

Your company name

W: blackhorse.co.uk/Motor T: 02921 386338 E: michael.mcpartlin@blackhorse.co.uk Info: We’re the specialists in finance, offering vehicle finance at point of sale though our network of over 7,000 dealers.

W: carcareplan.co.uk T: 0844 573 7591 E: salesinfo@carcareplan.co.uk Info: Choose the market leading supplier of vehicle warranty and GAP insurance – 1m customers every year can’t be wrong!

Getting your company featured here is more affordable than you imagine. Here’s why

W: netcars.com T: 0800 138 9135 E: info@netcars.com Info: Only pay for enquiries with the UK’s fastest growing car sales website.

Price: £16,645, tested in Issue 35.

W: duncton.com T: 01730 715300 E: mail@duncton.com Info: Leading finance provider for your non-prime customers requiring quality new and used vehicles with quick and efficient decisions.

Cheap Advertising It Really Works

W: Your website address T: 023 9252 2434 (that’s us!) E: adverts@cardealermag.co.uk Info: Making sure you’re in front of dealers when they need your services is vital. And for £29 per month can you afford to miss out?

Prices for 12-month listings: £29 per month. Single months are £49 per month

Prices exclude VAT. Adverts are invoiced after it has been included in the magazine. 12-month bookings are payable up front.

CarDealerIss38.indd 75

W: contact-advantage.com T: 08452 26 26 50 E: info@contact-advantage.com Info: Use Contact Advantage to drive efficiencies, enhance service, increase profitability and improve customer retention.

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DATA fIle.

James Litton Trader TaLes

Why Tesco doesn’t scare me and shouldn’t scare you

o, after months of speculation, it has happened. Tesco is taking us on and I, for one, am not worried in the slightest. The talk of Tesco bringing about a revolution in the used car world is nonsense. Can anyone remember Virgin Cars? Do Chevrolet still sell from Halfords? No. This business is unique. Tesco is just Carsite rebranded. Carsite operated in a similar fashion to the recently departed Autoquake. For those who are not aware, essentially TescoCars.com will be a remarketing channel for leasing companies who are able to return improved residuals on end of contract cars. The benefit to Tesco will be a handling fee but most importantly the opportunity to up-sell finance and insurance. In theory the buying process is easy, effective and allows Tesco to tap into the millions of customers they have stored on their database. So why am I not worried? Well, because the purchase process allows for no test drive, no inspection or no part exchange. Three of the most fundamental parts of the used car buying decision. I know there are descriptions and virtual test drives and this will be good enough for some buyers, but enough to change the market? I think not. The used car business has, is and always will be about the cars. They are unique, one of a kind. After a week of ownership from new, no two identical cars will ever be the same again. Therefore, Tesco will only ever be as good as their stock, which in their case is limited purely to ex-lease, Motability returns and daily rentals. Then there is the post-purchase experience. I thought the website was a little ambiguous but from what I gather there is a seven-day cooling off period. If you don’t like the car just send it back, less your £99 deposit plus the delivery fee. Great from a customer’s perspective but what will leasing companies think when they have had a car returned three times and are still awaiting payment? You can never understimate the power of being a local garage in a local town. If you have the same car as Tesco (it may even be £250 more), the fact that the person can touch, feel, drive and part exchange their car will be enough to make it a futile exercise.

‘The talk of Tesco bringing about a revolution in the used car world is nonsense.’

Traderdire Alfa romeo

Alfa romeo

Aston Martin

sturgess Alfa romeo

Benfield Alfa romeo

Aston Martin

Audi

HWM Aston Martin

Wimbledon Carriage Company limited

Walton & Epsom Audi

John Crisp 07885 211872

Mark loughnane 01932 220404 07739 519306

BMW

Bentley

Williams rochdale

Vines Group

Harwoods

Bentley

Citroen

Daihatsu

Jack Barclay Bentley

Marlborough

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

stephen Barnard 0208 504 0017

Daihatsu

Ferrari

Proven Daihatsu

Hr Owen Ferrari

scott allen 0116 275 8800 scottallen@ sturgesscars.co.uk n Buying used alfa romeos up to five years old

Paul spires paul.spires@hwm.co.uk 01932 240611 07850 326755

Craig Fenlon 01706 717700 07808 092110

Derek Bennett 020 7629 7444 07713 887 88

Keith Pattison 01428 652554 07771 547406

Dax Pearce dax.pearce@Benfield motorgroup.com alfa stock wanted up to 40,000 miles. n Call for immediate bid. 07501 257220 or 0191 211 2200

Dominic McConnon 07776 246905 dominic.mcconnon@ vinesguildford.bmw-net.co.uk n Buying used BMWs up to five years old

Mangoletsi (holdings) limited Fraser info@mangoletsi.com 01565 722899

simon elkin 01798 877211 07803 088711

Woodford Motor Co ltd

Monza – Ferrari

nick Carey nick.carey@hrowen.co.uk 07824 362229

andrew ludlow ferraribuyer@ntlworld.com 07889 305 053

Ferrari

Fiat

Maranello Ferrari

Glyn Hopkin ltd

sturgess Fiat

John Dutton 07817 019 456

glyn hopkin 07730 711889

ian Callis 0116 254 1717 icallis@sturgess cars.co.uk n Buying used Fiats up to five years olds

Who is James litton?

James runs theinternetcarlot.co.uk. he‘s been in the business for 12 years and always has something to say about the industry he loves.

To have your details included here log on to CarDealermagazine.co.uk/trader-directory.htm

76 | CarDealerMag.co.uk

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rectory

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

Ford

Honda

Benfield

Benfield Alfa Romeo

Lifestyle Ford

Honda

Thames Honda Group

Honda

Hyundai

Jaguar

Holdcroft Honda

Bushey Heath Hyundai

Hatfield Hyundai

Sturgess Jaguar

Charles Hurst Jaguar

Jeep

Kia

Lexus

Land Rover

John Holland Sales

Tower Hill Garage

Chapelhouse Kia

Lexus Twickenham

Sturgess Land Rover

Land Rover

mini test: VW PASSAT

Lotus

Maserati

Beadles Land Rover

Car dealer says HHHHH

Murray Motor Company

Meridien Modena

Des Sammon des.sammon@benfield-ford. co.uk 07831 828024

Luke Regan / Chris Thursfield 07971 543884 07813 737 921

John Holland / Mark Holland 07836 690818 07831 824644

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

Dax Pearce dax.pearce@Benfield motorgroup.com Alfa stock wanted up to 40,000 miles. n Call for immediate bid. 07501 257220 or 0191 211 2200

Jon O’Donoghue 0208 420 5100 07976 177 959

Lee Gilmour 01923 263700 07768 367085

Richard Walker 07748 177889

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

Andy / Neil 01925 570800 07891 531129 07825 311 297

The seventh-generation Passat is highly competent. It’s just a shame it doesn’t have the sparkle to match.

Brayley Honda Mark Corr 07812 342 635

Chris Allen chrisallen@sturgess jaguar.co.uk 0116 282 6868 n Buying Used Jaguars up to five years old

Dave Cooper / Steve Gurr 07831 704134 07921 408983

Graeme Robertson 0131 200 8888 07765 252745

Jerome Chandiram 0208 845 3551

Stewart Begg 0208 938 1300 07534 927 821

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

Warren Butt 02380 283404 07860 530703

Price: £23,585, tested Issue 36

Maserati

Mazda

Mini

Mitsubishi

Nissan

HR Owen

Lifestyle Mazda

Vines Group

North City Autos (Chingford)

Nissan

Ed Tyrrell 020 8524 8855 07736 610285 n Interested in low mileage FSH vehicles

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

General

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

Mark Spowage 01293 845045 07974 770020

Dominic McConnon Buying used MINIs up to 5 years old 07776 246905 dominic.mcconnon @vinesguildford.bmw-net.co.uk

Toyota

Volvo

General

Currie Motors Toyota

Sturgess Volvo

Sol Cars

Barry Freedman

Dave Cooper / Steve Gurr 07831 704134 07921 408983

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

There’s also a more comprehensive list of traders on the website, updated throughout the month

Tim Hancock 07973722243 timfoxhancock@btopen world.com n Wanting part exchanges of all types up to 4k

01753 543105 07836 338694 barry.freedman@virgin.net n Trade buyer of PX vehicles anything up to £8k

Prices for six month listings: £29.99 On Website Or £39.99 for Magazine & Website.

Payments can be made online via credit or debit card. Or send your cheque made payable to Blackball Media Ltd to Car Dealer, 2a Church Road, Gosport, Hants PO12 2LB. Your details will appear in the next issue.

CarDealerIss38.indd 77

Philip Wight Motor Co

Philip Wight 01923 220000 phil@click4cars.co.uk Sensible buyer of hatch and estates up to £4k please.

CarDealerMag.co.uk | 77

8/4/11 13:02:41

SHAReS.

..in association with ASE-global.com

progress hampered by ‘wait and see’ approach Positive financial results bring little share price momentum, explains ASE’s Mike Jones

a sTeP in The righT direcTion

ver the past month we have had the confirmation of strong trading results from the majority of the quoted motor retail companies. This has, however, had little impact on their relative share prices with no clear momentum in valuation movements. This underlies the overall picture, where the market is adopting a ‘wait and see’ mentality as to how each business is going to fare with the predicted lower volumes of new vehicle sales during 2011 and into 2012. The market has also been digesting the implication of wider news stories, particularly with regard to the effect that the Japanese tsunami will have on new vehicle availability during 2011. This could well slow already lengthy lead-times, hampering the efforts of motor retail businesses to hit new vehicle targets. During March, Lookers announced a strong set of results as expected, delivering record pre-tax profits. Once again the performance of the aftersales business was stressed during the public announcements with the strong implication that, as 60 per cent of the profits are generated in the aftermarket, the company will be well placed to ride out the drop in new vehicle sales. In addition Lookers announced the acquisition of Get Motoring, a short-term leasing business, again emphasising the diversification away from new retail sales. Despite the positive results and the acquisition, the share price has dropped steadily during March. Another share which has given up its early 2011 gains is Inchcape. With the UK and Western Europe only contributing a third of the company’s income, unlike other UK listed retailers, the share price is much more dependent on international sentiment. As a result of the tsunami, Inchcape shares dropped 10 per cent, reflecting the market’s assessment of the company’s exposure to Japanese brands. This overshadowed any assessment of Inchcape’s expansion into China following a series of successful pilots. HR Owen announced a return to operating profit and a continued restructuring of their business with the decision to part company

hr OWen chief andy Duncan has described the firm’s strong end-of-year results as ‘a step in the right direction’. in March these luxury retailer posted results that showed its revenue was up 26 per cent to £158m in 2010, with a net exceptional gain of £0.3m. Talking exclusively to Car Dealer, Duncan said: ‘The major factor in us posting good results, if i’m honest, was an element of market recovery. ‘Top-end customers, where we do most of our business, felt happy spending their money again. ‘The other factor was that we grew our share in that market, out-performing the market in both new and used cars.’ Duncan sounded a note of caution though. ‘let’s not get carried away. it was a good

set of results and a good improvement on a difficult 2008 and an especially challenging 2009. it is a step in the right direction and gives us foundations to build upon.’ new developments such as hr Owen’s partnership with Ferrari to create a bespoke ‘atelier’ at The Berkeley hotel, and the closure of its alfa romeo dealership in Parsons green, london, are all signs that hr Owen is growing and becoming stronger, Duncan said. ‘i do, however, remain relatively cautious about the rest of the year as the economy is still struggling a bit, but that will settle down. ‘looking at 2012 and beyond i am pretty confident, actually.’ JAMEs BAtCHElOr

with Alfa Romeo and the opening of a Ferrari boutique. The shares bounced back 10 per cent to their 2011 opening position – however, there is little real momentum in the price. It will be interesting to see whether the impending group strategic review of operations, which may well be announced at the company’s AGM in May, will produce a shift in market sentiment. Pendragon has remained largely steady during the past month. Interestingly, the share price has managed to hold on to the gains made following

the acquisition rumours during February. Pendragon remains highly dependent on new vehicle sales, although used vehicle operations have been opened under the Quicks brand at some of the company’s empty retail sites. There has been little movement in Vertu, Cambria or Caﬀyns during the month. There is unlikely to be any real momentum in the share prices of the listed retailers until it becomes clearer how profits are holding up during 2011.

Who is Mike Jones? he‘s executive chairman of ase global. if you want to talk to him about his column call 0161 493 1930 78 | CarDealerMag.co.uk

CarDealerIss38.indd 78

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BTC is one of the country’s leading suppliers of Profit Solutions into the

retail motor profit through our range of- * innovative % industry / + delivering & & *% &+ * * *% % % % % % , *$ Sales and Marketing Director – Main Board products and services.

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Negotiable Salary plus Equity Stake

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Our client is a large, highly respected and well established business in the BTC is one of the country’s leading suppliers of Proﬁt Solutions into the retail Vehicle Contract Hire and Fleet Management sector. This award winning motor industry delivering proﬁt through our range of innovative products and Company have prospered by innovative thinking and putting original ideas services. into practice. To continue this trend they are seeking a Sales and Marketing % / + && * +* & & % , *$ % &&$ who is a high achiever and will lead from the front with an entrepreWe are looking recruit National Account Manager our sales / +% % a& & &+ * * - * to work *% with % % % % Director / + & & *% &+ * * - * % to*% *% % % % , *$ neurial approach to providing practical solutions to customer needs. team to grow existing business from larger dealer accounts and develop new product streams. % / + % - * % * % % +& & & - * As &+% % % +% *&$ % / + & & *% &+ * * *% / +% % % % , *$ a dynamic leader of your New Business Sales strategy you will thrive % are / + *% & & % && - * to* +*&* % % &+ && * % * * % +&*%/$ & % && - * If +*&* % % &+ && % * * % +&*%/$ you sales orientated with ambition succeed in a*% market leading on continuous improvement. You will foster and drive a proactive team by the measures and processes to deliver positive results organization then you be to' us……. && * * * - % & * & - , putting -into * place, * &* % * & # / + % * & & * % && - * * & +*&* % % should &+ && talking * % * * % +&*%/$ % * */ + , $ ' *% , , $

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Vehicle Contract Hire – Vehicle Fleet Management – Car Rental Services • Comprehensive Training % % / + / + && * +* & & % &&$ % * % * +& / +% & & - * &+% % % +% *&$ % * +& / +% & & - &+% % % +% *&$ • Company Car & & * & % * - &+ && + * & - % ,

- * An - &+% % % +% *&$ / + % % * +& / +% & &• * &+% excellent remuneration package % % +% *&$

The role therefore calls for experience or a broad understanding of the con-

stituent% * & # parts of the business and a person who has successfully managed * & & && * / + % + % * & * & - # - * !) 0 000 * &* & * * * / + - % & * * * * - % * &* % * & # . * %" a National sales force in a similar field. Career * & && * * *- * / + & * & opportunities -- * * * &* % * & # - % &+ *& # - % • - development % &+ *& # - * • - % &+ *& # that cares about The opportunity to work in a business This & * & & * & % - * - &+ && + * & - % , is a Main Board appointment and the rewards are commensurate with & & * & % * - making &+ && + % , a difference to the retail motor trade that status; to endorse the importance placed on this position an equity & & * & % * - &+ && + * & . * . * % + % * # !) 0 000 % + % * %"- % , # !) 0 000 %"

* & - - * * &* % * & # - % &+ *& # . * % + % * # !) 0 000

stake in this significant business forms part of the reward package as well as an appropriate Basic Salary + Bonus + Executive Car.

&+ && + * & - % , * # !) 0 000 %"

For a confidential discussion about this role please call Derek Webb direct on 01889 591554.

' $ ' $

' $ ' $ ' $' $ " " " ' ' " ' $ ' $ " ' " % % % " $" $ " $ " " " " $" $ " " " $" $ " " # $ " $ " ' & $ & $ " " # $ " " # ' & $ & $ "

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' $ " ARC R e c r' $ u i t m e n 't "

Jobs in the Automotive Industry – % UK & International

" $" $ " "

Recruiting Nationwide from a network of 6 Regional Offices using a and staffed by people who have database $ " " #of over 24,000 $ " candidates ' & $ & worked in, or run dealerships, we understand what our clients and our candidates are looking for.

Recruiting?

Call us today on 01206 515 148 or email recruit@arc-uk.net

Looking for a new job?

Call us today on 01206 515 148 or email newjob@arc-uk.net

Relocating?

Call us today on 01206 515 148 or email relocate@arc-uk.net Some of our current vacancies:-

                       

Business Manager – Birmingham, ref 2802 Sales Manager – Stoke-on-Trent, ref 2809 Business Manager – Lincoln, ref 2821 Service Manager – Preston, ref 2816 Technician – West London, ref 2664 Sales Executive – Surrey, ref 2793 General Manager – Kent, ref 2820 Aftersales Manager – Essex, ref 2819 Service Advisor – Bucks, ref 2779 Sales Executive – Herts, ref 2756 Service Advisor – Wakefield, ref 2823 Sales Executive – Huddersfield, ref 2740

Details on these roles, and many more, can be found on our website. We also have a number of territories for new business opportunities with a zero cost start up model – email ch@arc-uk.net for details.

Visit www.arc-uk.net today! CarDealerIss38.indd 79

8/4/11 13:02:45

There’s a change on the horizon…

We take pride in our reputation… John Gibson Associates have been established for over 23 years and have a reputation that’s envied through out the industry for providing a recruitment service not only that we’re proud of, but that others strive to achieve.

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CarDealerIss38.indd 80

Tel: 0845 644 3003 THE LOCAL, REGIONAL, NATIONAL AUTOMOTIVE RECRUITERS

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

8/4/11 13:02:46

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Your business Your move fOR JuST £25 A YeAR Sign up online at

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Celebrating 50 years as the leading provider of automotive recruitment.

R C E IV E R

General Sales Manager - South West - £50K

Group Fleet Workshop Manager – London - £42K

Management Accountant – Milton Keynes - £30K Regional Parts Manager – East Scotland - £33K Sales Controller – Heathrow - £50K Sales Executive – Reading - £30K

Sales Manager – South Wales - £40K Technicians – Ireland - £Neg

Training Manager (Aftersales) – South – £Neg

More vacancies at www.steele-dixon.co.uk or by telephoning 01235 536440 CarDealerIss38.indd 81

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99164 D

DATA fIle.

To provide a really great service staﬀ have to be happy

llowing a forensic examination of your company’s workplace culture by an outside organisation and a national newspaper seems like a fairly wacky thing for any CEO to allow, but that’s exactly what happened towards the end of 2010 when we put our company forward as being a potential candidate for the Sunday Times 100 Best Companies to Work For awards. We were simply looking for feedback and benchmarking that would allow us to identify opportunities for further improvements to our environment and company culture. I believe that to provide a really great service you need a really great team that’s well motivated, committed and empowered to deliver, so we’re always looking for ways to improve. We didn’t enter the awards for the potential glory, but that said we’re really pleased to be one of the top 100 companies to work for in our category. I write about the need for constant review, reassessment and incremental or wholesale change where appropriate more than any other topic in this column, and therefore it probably comes as no surprise that entering these awards was the latest way we could think of to create opportunities for learning and improvement. Of course every leader has to determine where and what to develop or change within their own business, and what mechanisms they choose to gather useful data and insight. I suggest that every leader needs to keep a constant focus on their team as this is the foundation upon which you build a winning formula and a successful business, and at a time when every business wants to be able to do more for less you

Don

Brough suB-Prime Time

need great people to help you achieve this. In the past, I’ve seen many leaders pro-actively seek opportunities for learning and advancement but then fail to embrace the findings from this effort, and often this is because there’s some fundamental element that needs changing but which the leader holds dear. As a leader, it can be hard to embrace change when you realise that it’s you that needs changing, but if you truly want to be the best you have to be willing to listen, learn and adapt to the changing needs and evolution of your business. When we entered the Best Company to Work For awards,

‘It can be hard to embrace change when you realise it’s you that needs changing.’ I could have received some really negative feedback and learned many things which as the leader of my business I could have found quite unpalatable, but I think that if you’re not prepared to listen and learn from the feedback you’re getting you shouldn’t bother to look for it – and you’ll remain average for the rest of your days. There are no quick fixes when building a great company environment and team, and with today’s pressures to succeed (or survive) the need for potential cultural changes can be easily overlooked or put off until later. Don’t let this happen in your business; constantly look, listen, learn and then act on this learning.

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

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99164 DSSP First Response magad 28/02/2011 12:07 Page 1

Our people think we’re a ‘best company’ and we know you will too! First Response Finance has been working with our people on their development, and providing them with great working environments so they can focus on providing the ʻbestʼ possible service in our market. We are proud to have achieved a 2 Star accreditation out of a possible 3, and be classed as an ʻOutstandingʼ company In the Sunday Times Top 100 list. If you want a ʻbest companiesʼ service in offering non prime motor finance, call us today on 0115 946 6317

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