Car Dealer Magazine: Issue 4 by Blackball Media

Issue Four July 2008 www.cardealermagazine.co.uk

Driving the future of the motor trade

ATTRACT THE BEST STAFF

Job section launch issue: Experts’ top tips to get the best people working for you

HEARING VOICES?

Why you should be recording every call

Lexus

IS-F

417bhp, eight gears and M3 rival’s ready to race

NEW FERRARI CALIFORNIA + BMW X6

Plus! We’ve got two Route 66 SAT NAV systems to give away

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start Issue four | July 2008

hen someone hands in their notice, what crosses your mind? ‘Brilliant, good luck to them in their new career’, or is it more like ‘Bugger, that means another round of coffeeringed CVs, sweaty-palmed interviewees and an expensive call to the local paper’s advertising department’. I’m putting money on the latter. Finding the best staff for your dealership is absolutely vital if you’re to make the very best of your business – but I know that’s not easy. With recruitment agencies and manufacturers offering alternatives to the local rag and tapping up the staff from your rivals, it’s hard to know where to turn. Which is why when we decided to launch a recruitment section we wanted to do it in a way that would help you. This month we’ve spoken to the experts in the jobs market who have given us all manner of handy hints and tips to recruiting your next

top salesman or talented technician. And for those of you hunting for a new job, there’s a low-down on the dos and don’ts too. The recruitment section is matched with a brilliant new job search engine on our website which is updated daily with the latest positions in the motor trade. Log on to www.cardealermagazine.co.uk to check it out. Full details on this are on page 11 and the recruitment section starts on page 37. So, what else have we been up to this month? Well, the Car Dealer team headed to Millbrook proving ground for the annual SMMT day. It’s one of the best days of the year for me as all the manufacturers roll up with their latest cars and throw you the keys. It’s a great chance to try out cars back to back when usually there would be months between road tests. Our cover car, the Lexus IS-F, was tested there, and after screaming it around the challenging track I got the chance to take the Mercedes C63 AMG for a similar blast. Both cars feature V8 engines and are awesome to drive – but I actually preferred

the Lexus. I can’t quite believe it either, but check out our road test on page 20 and judge for yourself. We’ll print more tests from the day next month. And I’ll leave you with one final thought – our Cult Cars column this month features the incredible, warship of the road, the Rolls-Royce Phantom. It’s a car revered by boardroom brawlers across the corporate kingdom as much as the likes of you and me. So, just how much would it cost if you wanted one on finance? We asked our friends at Bridford to crunch the numbers and the answer’s quite a considerable sum! Turn to page 33 to find out exactly how much. Happy selling...

James baggott, editor

‘Looking like he was about to smash the window and steal the stereo, the baseball-capped one strolled up, pulled out the key and hopped in.’

CarDealer

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Issue four | July 2008

dashboard

Crunch Time

RULE CHange

CUlt Cars

ALL change

dot com

JUST REwards

REcruitment launch

new ferrari

On the spot

need for speed

Hearing voices

08 10 12

You need to hear this... HPI’s low-down on new regs 4x4 and sportscar sales to be hit Why keeping staff happy is vital Why we’re California dreaming Close reveals new dealer system

forecourt 20 24 25 27

Lexus IS-f VXR Nurburgring bmw x6 Peugeot 4007

features

Why crisis could be a good thing We’re in love with the RR Phantom Web’s no longer just for geeks Get the best people; find a job Signs Express boss interviewed

Tried & tested

That was a good idea column

competition

gadgets

trading places

used cars

WIN one of two sat nav systems! New Tom Tom sat nav That was a good idea column

‘It looks like it’s been thrown into a gym, subjected not to body building, but chassis building.’

CarDealer

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agenda

Want to improve sales and find out what your staff are saying on the phone? Then you need VoiceSafe

o you really know what your sales staff are saying on the phone? What if they were making criminal claims about rival car manufacturers? How would you know if they were harassing another member of staff or simply wasting hours of the working day chatting to friends and family when they should be working? Unfortunately, these examples aren’t made-up incidents, but typical horrors discovered by dealers who have recently signed up to the intelligent call recording systems provided by VoiceSafe. And, according to director Paul Cleverly, cases like these are just the tip of the iceberg. ‘We’ve discovered examples of sales people on the phone describing £30,000 prestige cars as “a clocker’s dream” while in one group several members of male staff at various outlets were sexually harassing the group sales administrator,’ Cleverly told Car Dealer. Call monitoring using VoiceSafe soon revealed these incidents, along with others that, while less disturbing, were still having an effect on dealers’ bottom lines. The system’s ability to display the top numbers called from, or to, each phone at the dealership, whether the top 10, 50 or 100, has proven particularly illuminating. ‘We discovered a business manager in one company was receiving seven to 10 hours of calls a week from one single number, and when we checked the number out it turned out to be his wife calling – for seven to 10 hours a week he wasn’t working for the company,’ explained Cleverly. These may be extreme examples, but the VoiceSafe chief points out that the system has proven very effective in more basic ways, improving the professionalism of the business. ‘We piloted the system with six dealer-

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HERE

Paul Cleverly, left, with Cardiff Audi’s Craig Walters ships and one of the first things we discovered was that 11.7 per cent of their incoming call traffic was not even being answered,’ he explained. ‘They had spent good money on advertising yet they were immediately losing almost 12 per cent of the generated leads by simply not even talking to them.’ By recording and analysing the call traffic at their centre, dealers have been able to improve the professionalism of their staff and increase productivity. ‘The system cuts the traditional bullfactor that sales departments have long been renowned for,’ added Cleverly. ‘Quite quickly 100 outgoing sales calls can be turned into 200.’ VoiceSafe uses an entirely webbased interface, enabling management to listen to calls from anywhere on its network that has an internet browser. Staff response to calls can be monitored and training improved as a result, while the staff themselves can listen to calls they have taken to confirm things like address details and any commitments they might have made

to the customer. Of course, one of the biggest issues for any centre is customer complaints and VoiceSafe proves particularly effective by analysing how such complaints are dealt with. ‘An average service manager costs around £50,000 a year to a dealer and a large proportion of his role will likely involve dealing with complaints. If he can deal with them faster and more effectively it will save the dealership time and money,’ said Cleverly. Cleverly also says that dealers see a whole range of benefits from VoiceSafe, and at surprisingly little cost, particularly if dealers make use of yet another feature which allows outgoing calls over a mobile phone network, dialling out via a SIM card and saving the dealer great amounts in call charges. And he thinks analysing the true effectiveness of a dealer sales force is something that is very overdue. ‘These days, the best productivity is essential and VoiceSafe offers a highly effective way to achieve this, at little cost to the dealer,’ added Cleverly. More details from 0845 421 5050

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System revealed some staff were poor on the phone MICHAEL Low is sales director at major Vauxhall, Chevrolet and Saab dealership Whitmore’s in Bromley, Kent, and he admits installing the VoiceSafe system produced some surprises. ‘It painted a somewhat blacker picture in certain areas than perhaps we expected,’ he told Car Dealer. ‘Some of our staff who were excellent at face-to-face customer contact proved to be rubbish when talking on the phone, alerting us to areas where we needed to instigate training.’ Staff who were initially suspicious of the system have seen the benefits of it too. ‘It’s very good for resolving disputes with customers, and we have used it to disprove customer theories of what they were told by our staff,’ he added. ‘There were some fears of big brother watching at first, but that’s life. When I’m spending money on marketing and advertising I need to know those generated leads are not being lost once they arrive here. VoiceSafe has certainly benefited our business.’

The VoiceSafe system lets you keep an ear on what your staff are saying when they’re on the phone

CarDealer

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dashboard Renault and Nissan to take on the Nano

CAR giants Renault and Nissan have linked up with Indian motorcycle manufacturer Bajaj Auto and plan to build a £1,270 car. The vehicle is set to compete with Tata Motor’s £1,250 Nano model – the world’s cheapest car, above, when it hits the roads earlier this year. The new car – codenamed ULC (ultra-low-cost) – will be manufactured and sold in India, with the first models due to come on to the market in early 2011.

Hamilton to attend Festival of Speed F1 race ace Lewis Hamilton has been confirmed for the Goodwood Festival of Speed. The event takes place from July 11-13 and if you’ve never been, make sure you go! The awesome event is a must for petrolheads and Hamilton will be there screaming his F1 car up the famous hill. For tickets log on to www. goodwood.co.uk/fos

For daily news updates, editor’s blog and an all-new job search engine visit cardealermagazine.co.uk

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With new regulations coming into force to protect consumers, HPI can help dealers meet obligations THE biggest shake-up of trade description laws in decades could have a serious effect on dealers. The legislation changes, introduced on May 26, cover unfair practices by traders of all consumer goods and services, protecting customers against practices that can mislead them. But for motor traders looking to cover themselves and meet the new criteria, help is at hand from HPI. The firm’s HPI and NMR checks can ensure dealers provide the level of protection they need. ‘Under the new legislation, misleading the customer in any way is being clamped down on as unfair and this includes misleading actions or omission of any information,’ explained Daniel Burgess, HPI’s Director of Automotive, pictured right. ‘What you don’t say about a used vehicle becomes as critical as what you do say. It’s well known that ignorance is no defence, but the introduction of “professional diligence” makes this truer than ever.’ Professional diligence is defined as ‘the standard of special skill and care which a trader may reasonably be expected to exercise towards the consumer, which is commensurate with either honest market practice or the principle of general good faith’. Burgess added: ‘The good news for dealers is that early indications suggest the HPI Check, NMR Check and NMR Investigation may be considered the minimum for meeting professional diligence.’

Ready for new rules?

Diamondbrite launches warranties

Trader offers five-year deal

IT’S not only paint that Diamondbrite can protect – now it’s engines too! The firm behind the protection system has got together with warranty administrator MB&G to offer a range of mechanical and electrical breakdown warranties too. The new partnership gives dealers a double profit opportunity as they can sell both products side by side. Following the initial launch, there will be a dealer recruitment drive during the summer.

FREE servicing for five years and a warranty for the same period – sounds like a deal too good to be true! But it’s not. ARD SsangYong in Knedlington Road, Howden, has launched the offer on all new models from the South Korean firm. The exclusive ARD initiative was the brainchild of boss Russell Dykes who came up with the plan to match the marque’s relaunch. ‘SsangYong is being revitalised this year and this is our way of giving the brand a real boost,’ said Dykes. ‘The cars are better value than ever, but with five years’ free servicing and a five-year warranty, customers know that there won’t be any nasty surprises.’

Tel: 0845 257 8105 Fax: 0845 257 8106

www.flagpoleexpress.co.uk Email: sales@flagpoleexpress.co.uk

CarDealer

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dashboard dealers beat crunch with online spend MOTORS.CO.UK is investing in a major consumer promotional campaign. The move follows findings that dealers plan to ride out the credit crunch by investing more cash in online marketing. A survey found nearly half of the UK’s biggest car dealer groups plan to increase their online spend. The new adverts feature a big blue wheel and will span press, outdoor and TV media.

citroen adds new Tourer to c5 range

All change for dealers IT’S all change for dealers as the slowing economy and credit crunch begin to bite. Despite rising interest rates, growing debt and environmental concerns, 4x4s and sportscars have managed to ride out the problems of recent years – but that’s all set to change. With a squeeze on consumer spending these areas of growth are likely to be feeling the strain very soon too, warns market analyst Experian. The firm’s latest Regional Planning Report has highlighted a significant downturn in the housing market over the past six months and has forecast a decline in UK house prices of 7.6 per cent over the next two years. The report has also forecast UK GDP growth to slowdown to 1.8 per

Luxury off-roaders and sportscars no longer the safe haven for sales they once were, warns report cent in 2008 and further still to 1.5 per cent in 2009, affecting the level of job creation in the UK and this is likely to hit the car market. ‘A car is arguably the second biggest purchase a consumer will make and financial concerns were already affecting used car sales, which have been falling since 2005,’ explained Kirk Fletcher, managing director of Experian’s Automotive division. ‘More and more consumers have been delaying their car purchase decisions, but we have still seen pockets of growth in the 4×4, MPV and sportscar segments. Sales do not appear to have been slowed down by financial worries or en-

vironmental concerns. In fact, our analysis shows that the effect has been a growing demand for diesel versions of these cars. ‘But while sales are still strong in these segments, they are not as strong as in previous years. The introduction of higher tax on these vehicles and the consequences of the global credit crunch, highlighted in the latest Regional Planning Report, could finally be the factors that push these segments back.’ Experian says dealers must be able to make informed decisions to grow and protect their businesses by ‘targeting the right customers, with the right products, at the right time’.

CITROEN has added a Tourer version to its C5 range. On sale from June 17, the new model is billed as one of the most ‘luxurious’ estate cars in its class. The car features self-levelling suspension and a motorised tailgate as well as optional massaging seats. The same engines as the saloon version are available in the C5 Tourer which starts at £16,695.

Range Rover may have enjoyed sales success in recent years but will buyers now shy away from large 4x4s?

production figures best ever in april

Production of TT Clubsport not ruled out

THE SMMT’s latest car production figures have revealed the best April volumes since 1998. Chief executive Paul Everitt said the growth was across home and export markets with more than 75 per cent of production heading off our shores. ‘Commercial vehicle production in April showed the best monthly growth since August 2007 and continues to grow,’ added Everitt.

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PLANT one of these on your forecourt and you’ll have buyers queuing around the block! It’s the Audi TT Clubsport Quattro, produced for the annual gathering of Audi and VW nuts in Austria.

You won’t be able to get hold of one for a while though – and at the moment it’s just a concept, but Audi hasn’t ruled out full-blown production of the car. The Clubsport is fitted with a

296bhp 2.0-litre T-FSI engine, the most powerful variant of the firm’s popular powerplant to date. The stunning looks come courtesy of virtually invisible A-pillars that make the window strip appear to be a single casting. A spokesman for Audi said: ‘The Audi TT Clubsport Quattro is a purist driving machine combining the performance of a sportscar with the unique design language of Audi. ‘Small-scale production of this model hasn’t been ruled out.’ Let’s hope he was telling us the truth...

CarDealer

6/6/08 10:58:09

‘we need to stop relying on the ibiza’

daihatsu defies crunch with new appointments SOME manufacturers may be feeling the squeeze from the credit crunch but not Daihatsu! The marque has increased sales 32 per cent in the year to date and has appointed a new dealer every two weeks. The Coleshill-based Japanese importer has signed up eight new dealers so far this year and aims to grow its 120-strong network to an eventual 140 showrooms. The latest dealer appointments are Newark in Crewe; Cist and Rattle of Bristol; Eastbourne Daihatsu; Chariton Motor House of Folkestone; Hammonds Halesworth; Downey’s of Newtownards in Northern Ireland; Lime of Leamington and Donnelly in Belfast.

SEAT needs to reduce its reliance on the Ibiza and Leon models, says the firm’s vice president. And how does he think that should happen? By getting dealers to do a better job! Frank Bekemier said the two models account for more than 70 per cent of total SEAT sales. ‘We have to be able to offer our customers more so that they will come back to us,’ he added. The Spaniards plan to double annual sales from 400,000 to 800,000.

new recruitment section is complemented by clever search engine on car dealer website

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SSANGYONG’S hunt for new dealers – launched in Issue 2 of Car Dealer – has been significantly bolstered with the appointment of former Bank of Scotland executive David Foster as dealer development manager. Foster, 45, joins importer and distributor Koelliker UK (KUK) at a crucial time in its relaunch of the brand and franchise. The marque has attracted significant interest from dealers following our feature.

Less complicated audi a3 range due

Making your hunt for a new job even easier FINDING your next job in the motor trade has just got easier – thanks to Car Dealer Magazine. We’ve launched an all-new interactive search engine at www.cardealermagazine.co.uk that lets you search for the best jobs in the motor trade. When you log on to the website, click on the ‘jobs’ tab on the left-hand side of the homepage and you’ll be taken directly to our search engine – pictured right. Here you can look for jobs across the country by searching by category, region, distance from your current location or postcode, and salary range. The clever search engine allows our recruitment advertisers to update their jobs daily – so you know the jobs you’re looking at are the very latest. And when you’ve found a job that catches your eye you can click on the mini description to launch a window

ssangYong’s new dealer manager

AUDI is reducing complexity in its new A3 range, due for introduction in August, to make showroom choice easier for customers and dealers alike. The revised range will feature four reworked or all-new, petrol and two diesel engines, but there will be fewer trim levels to choose from. There will also be small price jumps up the scale. Audi UK expects to sell 28,000 A3s in a full year, 9,000 3-door and 19,000 5-door Sportback models.

warrington are off on a european tour

with full details. The Car Dealer job search engine has been launched in conjunction with our magazine recruitment section which starts in this issue on page 37. ‘We decided to launch the section with a feature on how dealers can attract the best quality staff to their site,’

explained editorial director James Baggott. ‘And there are also some handy tips on how to get your next job in the motor trade too.’ If you’re interested in advertising your dealership positions in the new section and search engine contact Car Dealer on 023 9252 2434.

WARRINGTON Volkswagen achieved what their England heroes couldn’t – they qualified to play at UEFA Euro 2008. The dealer team beat five-a-side teams from franchised dealers across the country in the climax of the national Castrol 5s Championship, held at Villa Park in May. The win earned them a trip to Euro 2008 and a place in the five-a-side European finals.

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dashboard

Rewards are the key

Burgess Just checking Credit crunch is biting in more ways than one...

ur latest review of ‘hits’ against the HPI registers has revealed that outstanding finance is the biggest risk facing used car buyers today. Indeed, an alarming 30 out of every 100 cars checked by HPI are still subject to an outstanding finance agreement, and this is a worrying sign as the credit crunch bites down. Perhaps more concerning is that many of you are still unaware that if you unwittingly buy a car on outstanding finance, there is a very real chance that you will lose both the car and the money you paid for it. Overall we know that information against 43 in every 100 cars we check could threaten a car’s title, value or safety. ‘These statistics For example, one in four cars checked by are a wake-up HPI had at least one call for us all and platechange, which could underline the be crooks trying to hide a dodgy vehicle. importance of Once again, clocking rears its ugly head. Digital checking the validity of a odometers are proving no deterrent against clocking. vehicle before In fact, the number of vehicles being clocked is on you buy.’ the rise, with seven out of every 100 cars checked against the NMR showing mileage discrepancies. In addition, nearly one in 100 vehicles is identified by HPI as stolen. The increasing problem is that many stolen vehicles now tend to be ‘cloned’ to disguise their identity so that they appear legitimate. We will actively investigate any stolen hits with the police to verify the status of the vehicle. If this is confirmed as correct, dealers are then advised to contact their local police force. These statistics are a wake-up call for us all and underline the importance of checking the validity of a vehicle before you buy it. More and more dealers are recognising HPI’s role in helping them protect themselves and their customers. Arnold Clark, Drive Motor Retail, Koelliker UK (SsangYong) and Jemca are the most recent names to choose the HPI service as a seal of quality.

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

Keeping your staff happy with a trip to the fair or some vouchers can help boost business when times are tough MAKING sure your sales staff are rewarded is a great way to keep business booming in a downturn. Shelling out a few quid on a treat for employees can keep staff motivated and drastically improve revenues, according to company Love2Reward. Research has found that only a worrying 39 per cent of private sector businesses have a reward strategy in place. And when you factor in the cost of finding new staff – keeping your existing employees happy can be seen as wise investment. ‘One of the main objectives for investing in a reward and recognition scheme is to encourage staff loyalty and thereby reduce attrition,’ explained Martin Cooper, from Love2Reward. ‘Achieving this results in well-

accepted benefits to the employer such as consistent service levels, improved customer retention and up-selling performance.’ Sales incentives are well established in the motor trade, but the firm is urging dealers to think about rewarding loyalty too. Handing over a thank you such as tickets to a theme park or champagne for 20 or 25 years service is a nice gesture, but one that’s rapidly becoming a thing of the past. ‘While rewarding long service may still be the case within the public sector, the private sector’s idea of a long-server is shrinking,’ added Cooper. ‘Prevention really is better than the cure here and the act of recognition is just as important, if not more so, than the reward itself.’

Smaller is better for buyers TWENTY million car buyers plan to downsize next time they buy – that’s the dramatic shift detected by Motorpoint. The car supermarket has found more than two thirds of buyers will be downsizing with their next purchase. Industry watchers have been highlighting a surge in both new and used supermini sales recently. But even the highest small car sales figures have not broken the 30 per cent market share barrier. ‘These figures show a potential massive shift of more than two thirds of the motoring population – about 20 million people – into smaller vehicles,’ said Motorpoint.

Training falls into place JIGSAW Finance has invested in its staff to truly set it aside from the competition. In association with Axia Solutions the finance firm has implemented training based on the FSA’s Treating Customers Fairly regulations. But that’s not all. Jigsaw bosses wanted to boost staff training further and introduced a course of National Vocational Qualifications too. ‘We felt this would send a message to our customers that their contacts at Jigsaw were now qualified to offer excellent service,’ said Jigsaw’s Kurt Bradbury. ‘We have received many complimentary comments from customers.’

CarDealer

.EX

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California dreaming new ferrari features marque’s first-ever folding hard top WE’RE California dreaming! These are the first pictures of the Ferrari California – the new Prancing Horse with a folding metal roof. Unveiled in the most unusual way on the internet, the V8-engined GT is the latest addition to the Maranello line-up. Knowing that interest in a new Ferrari would create quite a buzz, Ferrari built up to the unveiling with a unique website. The first address announced to the press was ferrarigtcountdown.com and simply contained a timer and some smart buttons that let you hear what the all-new car would sound like. A few days later the marque released these first pictures and another web address – ferraricalifornia.com – which shows an awesome video of the new car. It was certainly a unique way to unveil a new car, if a little prolonged. The California features a 4,300cc V8 engine installed, for the first time in Ferrari’s history, in the mid-mount position. The unit has direct fuel injection and a ‘flat’ crankshaft that helps generate a torque curve that enhances vehicle dynamics and provides ‘maximum driving

Tew pleasure’. As per the traditional Ferrari transaxle layout, the engine, which propels the Ferrari California to 60mph in less than four seconds, will be coupled to a seven-speed dual clutch transmission. Brembo brakes with carbon-ceramic discs are standard as is the exclusive ‘F1-Trac’ traction control system which made its debut on the 599 GTB Fiorano. ‘The new car will satisfy even the most demanding of owners in term of its superb vehicle dynamics and driving pleasure,’ said a Ferrari spokesman. The car will be officially unveiled to the public at the Paris Motor Show and is likely to cost around £130,000.

Out with the new, in with the old WHAT’S the most you’d ever spend on a car? £20k? £50k? How about £5m? It might be enough to buy you a small island, or a dealership of your very own, but that’s what Radio 2 DJ Chris Evans recently spent on this 1961 Ferrari 250 GT. At an RM Auction held at Maranello, Italy, Chris shelled out €7,040,000 – £4,970,000 – for the SWB California Spyder. Collectors from across the globe descended on the Prancing Horse birthplace for the second annual ‘Ferrari Leggenda e Passione’ event held in association with Sotheby’s. Chris, accompanied by his wife

CarDealer

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Natasha Shishmanian, attended the gala reception where he fell for the considerable charms of the 250 GT. The following day, he made a successful bid for his dream machine, which will now take pride of place in his collection.

Net gains Is it time for dealers to cut those needless links?

o you have spent good money getting your website to look the business, and then more hard-earned cash on marketing to get the customers to surf their way to your domain. And just to ensure they have all their needs fulfilled you provide lots of useful links to such firms as personal loan companies and insurance providers – wrong! The worst thing you can do having achieved the goal of getting that customer on to your site is to then send them off it again to another firm. Oh yes there might be the revenue such links bring you, the odd pound or two paid out by the site you are linked to might be tempting, but for short-term gain you really ‘The revenue are setting yourself up for long-term pain. such links bring It’s quite possible, you you might be see, that once you send your customer off your site, tempting, but you will never get them you’re setting back. All the big players yourself up for in such areas as motor long-term pain.’ insurance boast large call centres with lots of staff, professionally trained in data capture, and have their websites similarly configured to grab all that essential information from your customer. They then sell this data on – often they will directly pass said customer on to other sites – sites that include car dealers. Personal loan pages in particular are a major no-no, masters of punting customers towards where they want them to go. So by taking that pound for a referral today, you really could be failing to sell a car in a few days’ time. Don’t get me wrong, I’m not saying that you should have no links at all on your sites. As I’ve said before, giving the customer everything they need to buy their car once on your site is the major key to a successful online presence, but there are ways of doing it without losing them. It’s called ‘whitelabelling’ and something we at Codeweavers are highly experienced in. Basically white-labelling involves taking the customers to the information they need – finance, insurance and the like – while never giving the impression they’ve left your site. The design of the pages needs to reﬂect your site so customers aren’t sent out into the big pool where all those data-grabbers are waiting…

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

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dashboard

Henstock Auction stations There’s good news and bad news for the used car trade

t has to be said there is not a lot of good news about in the used car market at the minute, but despite everything not all is doom and gloom. Our latest Pulse data for April shows that average used car values moved very little in the month, which indicates an element of stability that many were not expecting. Across the board, April auction values averaged £5,406 – virtually unchanged from March at £5,400 – on stock that was of a similar age and mileage profile. In reality, prices on well-presented and nicely specified retail-quality cars were maintained in April, but with little else selling price alone is not telling the full story. Conversions fell noticeably in April and there is ‘For the motorist now a lot of unsold stock remaining in the market, on a budget, which is continuing to depreciate. This will inevi- any squeeze on finances must tably be sold at what the market will realistically pay have an effect and that’s when we will see the average selling price re- on their plans to ﬂect the true market condi- purchase a car.’ tion. Anecdotal feedback from our dealer customers suggests that retail buyers are just not around in any great numbers, with many struggling to raise finance for any potential purchase. However, with used cars being the principal form of transport in 75 per cent of homes, if a car needs replacing then that purchase will be made. The past few years of low interest rates will have seen many car buyers releasing equity to fund their purchase when they negotiated their latest mortgage deal, because it was the cheapest way of raising the money. That avenue is likely to be restricted going forward. For the motorist on a budget, any squeeze on finances must have an effect on their plans to purchase a car, whether that means a potential purchase is deferred until ‘better times’, a used car is chosen instead of a new model, or a cheaper used car is selected from the many available. There’s no doubt the market is tough, but as always the switched-on businesses will take the rough with the smooth. With plentiful supplies of older, good value cars about, is it time to look at your retail stock profile and reﬂect that availability a little more?

Who is Simon Henstock? Simon is UK network operations director for BCA. Find out more at www.bca-europe.com or call 0845 600 6644.

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See-through Subaru Unique dealer demonstrator is really pulling in the punters

SEEING is believing – and that’s certainly true with this special Subaru! Inventive dealer Stan Palmer Sales of Carlisle came up with the see-through Subaru to promote the benefits of the manufacturer’s new Boxer diesel engine. And the unique promotional vehicle is not only turning heads but drastically boosting showroom footfall too. The car appears to have a bonnet made of glass, with every engine detail meticulously replicated on a vinyl wrap. Equally startling is the side of the car which shows the engine plus Subaru’s famous symmetrical all-wheel drive system and even the exhaust silencer. ‘Being the world’s first boxer diesel engine, we thought we should come up with something equally revolutionary to get the car noticed,’ said dealer principal Ian

get involved now with our dealership security special HOW safe is your dealership? With crime on the rise in many areas across the country, protecting your business from criminals is bound to be at the forefront of your mind. Next month we’ll be highlighting the products and services available to dealers who want to beat the stickyfingered brigade. From CCTV to security guards, anti-spyware software to security bollards we’ll be rounding up the must-haves. ‘We know dealers are always on the look-out for products and services to protect their sites and this feature aims to highlight the very best,’ said editor James Baggott. If you’ve got a product or service you think our readers should hear about, call Car Dealer on 023 9252 2434.

Armstrong. ‘We saw a cutaway picture of the engine in the brochure and that got us thinking about taking it one step further. The reaction has been fantastic, with people almost tripping up as they walk past. Customer footfall has gone up dramatically and while it may not mean a sale today, some will come back when it’s time for them to change their car.’ The car was stickered up in one day after a photograph was taken of the engine using a high-resolution eight mega-pixel camera. Lawrence Good, managing director of Subaru (UK) Limited, said: ‘This car has become quite a talking point back here in head office and is a fantastic and cost-effective advertising initiative. It should inspire other dealers to either copy the idea or come up with their own campaigns.’

makers moves to help dealers TWO car firms have appointed new remarketing managers to help their dealer community. Fiat and Kia have announced new appointments as the brands move to support franchises across the country. Fiat has appointed Simon Wheeler, right, to the role of used vehicle remarketing manager. Meanwhile, Kia has appointed Andrew Sellars as the company’s new head of fleet and remarketing. Andrew, 39, will spearhead the company’s recently re-focused sales efforts in the fleet and business sectors.

CarDealer

6/6/08 10:59:00

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Telephone: 020 8800 1118 6/6/08 10:59:00

dashboard demand surge for prius after report

Super-speedy Close finance close motor finance to launch new dealer proposal system

TOYOTA’S success in the recent JD Power satisfaction survey has caused a peak in demand for the top scoring Toyota Prius. The UK’s largest car hypermarket chain, Carcraft, has reported that demand immediately after the publication of the report led to a temporary shortage of the Prius, with many customers requesting to be placed on a quickly growing waiting list.

smashed smart proves a point

SMART’S new ad campaign sees one of the mini vehicles smashed with a wrecking ball. The ad challenges people’s preconceptions and shows Smart’s marketleading safety credentials by smashing a onetonne ball at 25mph into the car. During filming, a stuntman sat in the car and got out unharmed despite declining to wear a helmet or harness!

The wombles want new cars WANT to supply the Wombles? The Highway Patrol need a new fleet of cars and are inviting bids from suppliers. The Wombles – named so by Jeremy Clarkson because they go around picking stuff up after an accident – want approximately 195 vehicles on a contract hire basis, with maintenance and support services. Prospective suppliers can attend a pre-tender seminar in Birmingham in June.

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SPEED is of the essence when you’re trying to close a deal – and one finance company has the answer. Close Motor Finance is set to launch a radical new dealer proposal system that will help traders turnaround finance deals in super-quick time. This new system, developed in conjunction with Codeweavers, has added benefits over the existing dealer proposal systems used by many finance houses. These include a sophisticated calculation system that is embedded in the web-based system and the ability to generate bespoke quotes based on vehicle information. Using a speedy internet link, quotes are submitted to Close branches for underwriting and are set to result in impressive turnaround times for dealers. ‘The provision of smart point-ofsale software, integrated with internal and partner systems, is fast becoming a necessity,’ explained Close managing director Janet Wilson. ‘Through this system, Close is able to provide dealers with access to a fast, flexible, customer-focused quotation system, delivered

over the internet, and we are better placed to turnaround credit decisions.’ The web-based proposal system – the homepage of which is pictured above – will allow a dealer to capture the basic customer details, select the appropriate vehicle and model, and then choose a payment profile to suit the customer’s specific financial requirements.

garages signing up in huge numbers to new code of practice for servicing MORE than 5,500 garages have said they’ll sign up to the new Motor Industry Code of Practice for service and repair. Any UK garage can sign up to the voluntary code that aims to promote and safeguard the interests of consumers by helping them find reputable garages. The scheme will provide customers with a dispute resolution scheme when needed while providing garages with an excellent marketing tool to attract new business. ‘Industry response to the code has been extremely encouraging, with thousands of outlets already committed to signing up prior to launch,’ said Chris Mason, Motor Codes director. ‘The website will act as the gateway to the industry signing up to deliver accountable business. We expect many more garages to log-on and subscribe over the next few months before we launch to consumers in the summer.’

Any UK garage can sign up to the voluntary code, which is currently progressing through the Office of Fair Trading (OFT) Consumer Codes Approval Scheme (CCAS). To comply, a business will need to commit to meet the requirements for completing service and repair work while engaging with their customers. ‘We want to see unnecessary and unfair practices driven out of the motor industry service and repair sector, and the code aims to do exactly that,’ said Alec Murray of the Retail Motor Industry Federation. While Paul Everitt, of the SMMT, added: ‘Considerable effort has gone into developing this code to make it affordable.’

‘Our well-designed system presents the dealer with all the information necessary to assess the customer and identify the profitability on the deal,’ added Wilson. ‘And all of this is available while easing the customer through the transaction with relevant online content and visual aids.’ To find out more about the system, call Close on 01302 646500.

‘We’re still growing’ ONE of the UK’s major dealership groups says it is confident of growth in 2008 despite the challenging financial climate. Lookers says its diversified business model, which includes franchise dealers, used car supermarkets and an aftermarket parts business is key to its confidence. At the company’s AGM, chairman Phil White said: ‘We are clearly mindful of the current uncertainties within the UK economy but, provided there is no further significant deterioration in the economy, we are still confident of delivering another year of growth in 2008 in line with market expectations.’

CarDealer

6/6/08 10:59:15

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6/6/08 10:59:20

Lexus IS-F £51,105

un machine

It was only a matter of time before Lexus got hardcore, but is the new IS-F good enough to topple the M3? James Baggott finds out

ighth gear clicks into place and the acceleration is unrelenting. The noise from the 5.0-litre V8 is penetrating the cabin through the floor, shaking my kidneys as the speedo climbs past the 100mph mark. And I can’t quite believe I’m in a Lexus. This IS-F is good. Very good. The revs are still rising as the IS-F slips into the fifth lane of the concrete-surfaced high speed ring and the speedo’s touching a mph mark that could have me thrown out of this Vauxhall-owned test facility faster than a spy photographer. With the suspension compacted into the ground by the banked surface, the Lexus is controlled and planted – going fast has never been quite so easy, or addictive.

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The IS-F represents a milestone in Lexus history and has been designed to be an out-and-out driver’s car. This is a real rival to the V8-engined BMW M3 and is quite evenly matched in the performance stakes. With 417bhp and 505Nm from the 32-valve V8 block, the Lexus is just 3bhp shy of its German rival. But that output is enough to propel the IS-F to 60mph in 4.6 seconds, trumping the Munich monster by a slim margin of two tenths of a second. We can’t, for fear of repercussions, reveal quite how close we got to the car’s 168mph top speed, but you’ll be pleased to know it again beats the M3’s 155mph (albeit limited) top speed. Ok, so it might be close to the Beemer on paper, but can it beat its driving experience? >

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forecourt Lexus IS-F Price: £51,105 Engine: 5.0-litre, V8 Power: 417bhp, 505Nm 0-60mph: 4.6s Max: 168mph Ins: Group 20

The IS-F is an intoxicating and highly addictive piece of machinery that stirs the emotions with a fabulous blend of driver enjoyment and outright power. We predict it’ll be a popular seller – well, we want one! Well, one thing’s for sure, it’s certainly a close run competition. The IS-F is an extremely competent machine and capable of exciting even the most ardent Lexus haters. This test took place at the SMMT’s annual driving day for hacks. Pretty much all manufacturers roll up to the impressive Millbrook test facility with a selection of cars for the press to enjoy on the variety of circuits the huge Bedfordshire proving ground has to offer. One of the most challenging is the hill route. Fashioned on an Alpine pass, it is littered with hairpins, twisting off-camber corners and dips that can have you revisiting breakfast. The route was even featured in the famous scene from the James Bond blockbuster Casino Royale when 007 flips his DBS to avoid his conquest in the road – if you’ve seen it you’ll know the scene. Needless to say it’s an exciting and challenging course and one that the IS-F excelled on. With so much power in reserve the Lexus punches out of corners like a nuclear explosion, and with a separate set of baffles that open in the stacked exhausts as the revs rise, it’s all accompanied by a deep bellowing soundtrack. It’s a heady mix that really makes driving the car feel like an occasion; it feels truly special. The driving position is spot on and multi adjustable; sat low in the cabin with a chunky sports steering wheel it’s like driving a touring car. And the paddle shift eight-speed gearbox is seriously good. Often these semi-automatic boxes can be restrictive (like in the new Evo X) and others can be a true revelation (like the Golf GTI DSG), and thankfully the IS-F unit sits in the second camp. Changes are rapid and punchy and don’t hamper acceleration in any way. Down changes are matched with a blip of the throttle too and it works superbly on the challenging hill route. Lexus says the Sport Direct Shift auto transmission – to give it its long name – can

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swap cogs in 0.1 seconds on upshifts, with downchanges taking just three tenths. And there’s no reason to disbelieve it. Safety gear – as you’d imagine in a car that’ll crack 160mph – is liberally applied. A vehicle dynamics management package combines ABS, electronically-controlled brake slip differential and traction control. After two hard laps, there’s no fade in the massive 360mm Brembo brakes – power is consistent despite the demands of hard braking on steep descents. The ride is firm, but perfectly set up for spirited driving, and with love-handle hugging seats it’s a comfortable place to up the pace. As with most Lexus (Lexi?), the IS-F is slightly on the complicated side of things when it comes to the interior – it’s like the dash has been shot with an AK47 and the holes filled with buttons. Ok, so it might be a bit more organised than that, but you get the point – there are lots of controls. Style wise, the Lexus has a daunt-

ing road stance. Steroid-pumped flanks, twin double-stacked exhausts and deep bumpers mark the IS-F out as a performance machine and the lightweight, 19-inch bespoke BBS alloy wheels are a great finishing touch. The fact the IS-F copes so well with our track test is of little surprise – the F stands for Fuji Speedway which is where most of the car’s honing took place. Track time is in the car’s DNA and is apparent as soon as you slot behind the wheel. Unfortunately, we didn’t get the chance to try the Lexus out on the road. How well it’ll cope with our potholed streets, and the temptation to floor the throttle at every stretch of open road, is unclear. And with a tank of petrol currently costing more than a house, buyers will have to have deep pockets to satisfy its thirst. We’d suggest dealers gloss over the economy (16.8mpg!) and instead point them towards the performance figures, chances are that’s why they want it after all.

‘We can’t, for fear of repercussions, reveal quite how close we got to the car’s 168mph top speed, but you’ll be pleased to know it again beats the M3’s 155mph.’

CarDealer

6/6/08 10:59:31

COS0

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

Find out more The pulling power of the new Rexton

The versatility of the new Kyron

The space of the new Rodius

Call Ian Nicholson on 01252 619100

www.ssangyonggb.co.uk

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6/6/08 10:59:32 3/28/08 12:24:31 PM

forecourt

W N hite

oise VXR Nurburgring £21,295

f you’re anything like me, these pictures will be giving you flashbacks of car tuning mags, 90s Brit pop and some misspent teenage hours whiling away hours pricing up performance upgrades. Ok, so not everyone was a wannabe boy racer like me, but I bet there aren’t many of you out there not turned on just a little bit by this white-bodied beauty. Back in the 90s, when I was just getting my first whiffs of petrol, the fight for the best hot hatch title was one of the bloodiest battles on the roads. GTI, SRI, GTE, RS – those letters were a code that meant big time excitement for small time money. Now, things are little different. Yes, the latest contenders might weigh more than a baby whale and have more gadgetry than a London bachelor pad, but the fight for the hot hatch crown is still one of the most hotly contested out there. Which brings us to the new contender – the Astra VXR Nurburgring. Some would say a poor marketing attempt to cash in on the fact the hot hatch was ‘developed’ on the legendary German track; others, like me, say who cares, just give us the keys! Packing the same engine as the standard VXR, the Astra pumps out 237bhp from its turbocharged 2.0-litre unit. And costing £21,295 it’s got some stiff competition from the likes of the Golf GTI, Honda Civic Type R and brilliant Ford Focus ST. So what’s the Nurburgring got up its sleeve? Well, a shovel load of torque steer, unfortunately. Yes, it packs one almighty punch, but on a twisting A road it takes some fighting. This, depending on which side of the fence you sit, is a good/ bad thing. I quite like it – it’s entertaining and certainly gives the car some soul.

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Inside, you’re met with an abundance of carbon fibre, big leather sports seats and a chunky sports steering wheel. Climb inside and you don’t even have to take the key out of your pocket to fire it up – just hit the silver start button and you’re away. On the road, the first thing you notice is the noise. To say the sports exhaust is loud is an understatement – it’s positively operatic. Keep below the power band in town and it’s easy and actually quite civilised. However, fortunately, I had the pleasure of putting the Astra through its paces at Millbrook proving ground on the challenging hill route – a miniNurburgring road-cum-track, which is quite fitting for the Astra. Bury the throttle and it’s like someone has rear-ended you at 100mph. The turbo feels like it’s trying to detach the front of the car, lurching you forward at a pace no hot hatch has the right to. A bit like bullfighting – if you let this beast control you, you’re going to

get skewered. Instead you need to tackle it with some force, let it know who’s boss, then you’ll start to enjoy yourself. Hammering through the precise six-speed box as I thread corners together like conkers on a string, the exhaust lets out a bark on the over-run and I’m transported back to my teenage years, lusting not after Pamela Anderson, but an Astra! Couple the driving experience with that so-the-darling-of-the-moment white paint scheme, equally pearly alloy wheels and chequered flag graphics and I’m smitten. The VXR certainly demands respect – it’s not the easiest of hot hatches to drive quickly that’s for sure, but it is one of the most entertaining. So, who’ll be buying it (apart from me)? Well, let’s put it like this – if he comes in with gold chains, tattoos of his Rottweiler on his arms and missing teeth, you’ve got a sale. The VXR is mean with a capital M. DUNCAN CHAPPELL

CarDealer

6/6/08 10:59:42

BMW X6 £41,965

ould breaker

emember when BMW launched the X5? Most people thought they were mad, then tried not to watch as the 4x4 sailed up the sales charts. So, when rumours started surfacing that the men from Munich were working on a seriously sporty 4x4, this time those same people took them a little more seriously. The X6 is a car that merges a coupe bodyshell with SUV all-wheel-drive ability. There is nothing remotely like it on the road, and if this wasn’t a BMW you would think it’s a big risk. But it is a BMW, and it is already sold out for the first year – around 1,600 owners already eagerly awaiting their new toy. The X6 is certainly a head-turner. BMW’s suits claim they have simply given the X5 line-up a coupe option, just as all the saloon ranges have their own coupe variants. In truth, though, it looks like one of those saloon coupes has been thrown into the gym, subjected not to body-building, but chassis-building. This car doesn’t sit, it perches, high off the ground, on gargantuan 19-inch wheels, looking truly menacing.

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It looks like something from outer space, but the X6 is by no means a gamble for BMW, reports Stewart James

The X6 boasts a four-way engine range at present, all of which are turbocharged – a first for any BMW line-up. Likely to be bestselling will be the 3-litre diesel of 235bhp, while the 35d uses a 286bhp version of the same engine, but adding a second turbo. Petrol units begin with the 306bhp 3-litre unit named International Engine of the Year both last year and this. And topping the range is the 400bhp, 4.4-litre twin-turbo V8 of the 50i, which will send this car through 60mph in 5.4 seconds – that’s faster than a Porsche Boxster... We tried the entry-level diesel and a very impressive unit it is too, barrelling the car along in assured fashion. There are hidden benefits too, whichever X6 you buy, because every version is a member of BMW’s Efficient Dynamics program designed

to cut CO2 and stretch fuel mileage. This is achieved in clever ways such as harnessing the wasted electrical energy generated under braking, and using lightweight materials for various body panels. Driving the X6 is slightly surreal, because while one sits high up, it really handles, almost as impressively as, well any other BMW. There is a secret to this prowess – it’s called Dynamic Performance Control, and uses a rear differential to stabilise the car even at high, rapidly changing, cornering speeds. One thing’s for sure, BMW is taking no gamble here. What they have produced is a vehicle that has all the dominant road presence that makes SUVs so popular, with the performance one expects from a prestige performance saloon, and clothed in a suitably sleek shell. It’s a very impressive piece of kit.

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6/6/08 10:59:53

cult cars forecourt Peugeot 4007 £22,890

Late arrivaL

n 2007, Peugeot launched its first-ever Sports Utility Vehicle – something that might surprise the average motor industry watcher. Because, let’s face it, SUVs are no longer the darling of the roads. While not long ago it seemed every manufacturer was adding a big, chunky, road-dominating 4x4 to its range, now more and more are turning to less in-your-face Crossovers, in the face of constant haranguing from the environmentalists and ever higher tax regimes from those in authority. The Peugeot 4007 is by no means a Crossover – it is very much a big, in-your-face SUV. So surely, it’s a vehicle that Peugeot has launched too late? Well customers don’t seem to think so, if the 4007’s sales figures are anything to go by. Peugeot tells Car Dealer that its newcomer is selling well, and while it was never likely to become one of the most common vehicles on the roads, it’s meeting its expectations even in today’s environment. The reason becomes clearer once you climb up into the 4007. You see people still like

With the tide turning against 4x4s, has Peugeot’s 4007 arrived at the off-road party a bit too late?

SUVs, and this is an effective one. No surprise really as the 4007’s hardware comes from a manufacturer that knows a great deal about making 4x4s – Mitsubishi. First and foremost the 4007 is designed as a road machine, because it is on the blacktop where most SUVs spend their entire life. And on the road, whether country lane or motorway, the 4007 proves very capable indeed. While the Mitsubishi equivalent – the Outlander – comes with three engines, its French sisters come with only one. Peugeot (and Citroen) present the vehicle as an upmarket model, so you get a 2.2-litre diesel of 156 horses, which sees the car through 60mph in a shade under 10 seconds. It also returns fuel economy close to 40mpg and emissions of under 200g/km, which for something of this capability is impressive. The power comes in smoothly and confidently, bolstered by a slick six-speed gearbox (there’s no auto option surprisingly), while the handling is

equally confidence-inducing. The Peugeot scores equally well on its detailing. This vehicle is targeted at family buyers, and such features as the third row of seats that can be simply hidden under the floor when not needed will no doubt appeal. There are two versions of the 4007 – the SE starts at £22,890 and includes such niceties as alloys, automatic air conditioning, an electronic stability program and even cruise control. The GT adds, among others, leather to the seats, heating and electric adjustment to the driver’s, parking sensors, xenon headlamps and a six-disc CD changer. The rear windows gain a dark tint, the alloys grow in diameter by two inches, and the price grows by £2,700. It’s not the cheapest full-size SUV out there, but the 4007 is worthy of serious consideration – particularly as it has rather a lot of proven Japanese technology under its skin…

NEXT MONTH

security special How safe is your dealership? with crime on the rise car dealer will be featuring the firms that can make your dealership a thief-proof property. don’t miss it ADVERTISERS: If you want your crime-fighting products put in front of CAR DEALER readers call 023 9252 2434

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6/6/08 10:59:59

finance

The credit crunch will begin to sort the men from the boys, believes Affiniti Finance boss

Time

HE evidence is clear – the credit crunch is biting and more and more dealer principals are staring depressingly at sliding sales figures. Some have already gone to the wall, and not just the small, backstreet outlets. The reason, however, is not so obvious. There is no shortage of customers out there wanting to buy cars. But now when they try to secure their desired new model, they find they simply can’t get the finance to pay for it. According to Craig Rutherford, managing director of Affiniti Finance, the credit crunch has seen a number of high-profile lenders drop out of the market. ‘These disappearing has in turn had the effect of closing down small and in some cases large dealers. They can’t get the money for their customers to buy cars, and they can’t get the money to buy stock themselves,’ he explained. Rutherford, however, believes firmly that dealers can survive the downturn and come out stronger on the other side – the crucial key is their levels of customer service, and that includes not only finding the customer finance, but a package that they will feel safe in accepting. This, he says, is where Affiniti can help. He should know – it is through his many years in the industry that the idea that became Affiniti was born. Rutherford started as a salesman on the showroom floor, progressed to business manager level, then went on to work for lender

Craig Rutherford, left, chats to Jamie Porter Advantage Finance. Running the broker side of Advantage’s business, and dealing with major lenders Halifax and Bank of Scotland, Rutherford saw swathes of applications coming in for car finance: ‘In many cases the banks couldn’t help, and these applications simply went straight in the bin.’ So he set up Affiniti as a complete service for customers. Firstly a suitable loan would be found, and then the car they wanted sourced from a reputable dealer: ‘It was a complete service, and very hard work to do, but it got results.’ Before long, personal loan brokers who couldn’t get finance for their customers were

turning to Affiniti for help, while the dealers who were seeing their cars sold for them were very happy. Now the wheel has turned full circle, with the dealers relying as much on Affiniti as customers previously have. ‘We’ve looked outside the box,’ Rutherford told Car Dealer. ‘How can we help dealers sell cars? If they do they become stronger, which generates more business for them and for us. It is a self-fulfilling prophecy.’ Firstly, and crucially, Affiniti has the product, enabling a dealer to obtain the finance that will allow a customer to buy the car they want even in today’s difficult market – and these days that

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Affiniti Finance boss Craig Rutherford – above, and left chatting to Kerri Porter of Concept Car Credit – believes the tough trading times will ‘force out the sharks’

‘The crunch is weeding out the cowboys both at finance house and dealer level.’

is often achieved effectively by the dealer applying for a personal loan on the customer’s behalf. Rutherford explains: ‘While we started off on an HP basis, these days lots of customers are in negative equity, they can’t get the finance and have to look at other ways. Because of our association with the banks we are in what I believe is a unique position to offer a full range of personal loans to customers, with deeper levels of acceptance – we can place a sub-prime customer with the products that are out there.’ Rutherford contends, however, that offering the means to buy is only a part of what the dealer needs to do to secure the sale.

‘Today’s buyers are shopping around more and the experience the customer gets from the dealer is ever more important,’ he explained. ‘That level of customer service has to be complete, from the physical experience when they walk into the showroom to the confidence in the financial product the dealer comes up with. ‘In the past, customers have gone into showrooms having already been to their bank for finance, which suggests they were sceptical of the financial package the dealer offered – that has to change. To get the business the dealer has to make the customer feel safe in sorting their finances in the showroom.’

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This is where Affiniti really scores, Rutherford adds, because it offers the highest levels of service at both customer and dealer level. ‘My company is actually called Dealer Support, trading as Affiniti Finance, because I’ve been there, I’ve sold cars and I will happily stand in a showroom and help the dealer sell cars.’ Rutherford also believes the current tough times will have a long-term positive effect. ‘The crunch is weeding out the cowboys both at finance house level and dealer level. The strong, those that provide the highest levels of service, will survive, because you and I will always need to buy cars. The sharks will be forced out.’

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

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

Call us on 0870 2000 848 for your FREE two week trial and experience the full range of Autotrade-mail subscriber benefits before investing in your £40 monthly subscription. CarDealerIss4.indd 32

6/6/08 11:00:07

rolls-royce phantom

t was in Knightsbridge (as if it could be anywhere else), where I saw my first Phantom. Sat parked up outside a Costa coffee shop in a bus lane, I couldn’t help but stop and stare. The good ship HMS RollsRoyce, berthed next to a lamppost, might have been illegally parked, but not even the traffic wardens seemed to care. Combining a love of coffee with the need to admire the Roller for just a little longer, I sat in the window waiting for the owner to return. And return he did. Looking like he was about to smash the window and steal the contents of the glovebox, the baseball capped 30-something strolled up, pulled the key from his baggy jeans and hopped in. I nearly choked on my Americano. How on earth could he afford it? And why, if it was his, was he driving it himself? Both questions I’ve struggled to find answers for ever since the capped one pulled away, cutting up a taxi driver as he hurtled off towards Mayfair. It might not have been his, but he sure did look cool and it was from that day forth I became a fan. Wherever you catch your first Phantom sighting, you’re unlikely to forget it. The sheer size of this royalty for the road is staggering – at nearly six metres long, there is nothing that commands more presence. The front end, with its squinty little head-

light eyes and swallow-you-whole grille, brushes lesser road users aside like an overenthusiastic doorman. The Roller is certainly imposing. The problem is some would say a little too much so, perhaps even bordering on the ostentatious. Nothing says ‘I’ve got more money than you’ like a Phantom. And in some cases that’s what appeals. Rolls-Royce’s most famous customer – and one that’s given the brand more free advertising than any marque could wish for – is The Apprentice head honcho Sir Alan Sugar. He’s interviewed in the back of it every week on the show, there are gratuitous shots of it sweeping through the capital’s streets, and he usually pulls up like royalty at the beginning of each show in it to address his wannabe workers. A masterpiece in PR, from RR. But it’s this image as a corporate must-have, something top-flight businessman aspire to owning, that has made the brand such a success for present owners BMW. I, like many other humble drivers, absolutely adore it. From the badges in the alloy wheels that are weighted so they’re always the right way up, to the fact it doesn’t have a rev counter, instead just a gauge that indicates how much power is in reserve – it’s full of touches that mark it out from the competition.

cult cars If you’re interested in what’s under the bonnet, you’re probably not in the market for one – owners don’t want to know about the business end. But if they do feel the need to investigate they’ll find a 6.75-litre, 48 valve V12 with a whopping 453bhp and 720Nm of torque. All more than capable of whisking ‘sir’ along in comfort. The Phantom is unashamedly luxurious; a power statement like no other that marked the brand’s new dawn under its Bavarian ownership. And it did so in style – and it’s for that reason it claims a place in our Cult Cars hall of fame. Now, I’ve just got to work out how I can afford the monthly repayments… JAMES BAGGOTT

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6/6/08 11:00:13

dot cultcom cars

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he internet is an unknown entity to many traders, yet it plays such an important part in selling cars these days. In its dramatic rise from geek chic to ultimate business tool in little over a decade, the information super-highway is a road every car dealer needs to travel. But what do you need to think about? Well, the important thing to remember is pretty much every car buyer starts their buying process online. So, during this critical research phase, you need to put your products in front of those potential buyers. There are countless web firms out there offering dealers the ability to do this – all of them promising they’re the best, but the reality is the results can be mixed. So how can dealers really get the best out of the web? For a start, you need to take into account the popularity and relevance of the website carrying your advertising. It is very easy for car dealers to be distracted by the plethora of sites that seem to be launching every week, but if you remember you need to be where the largest groups of potential customers are, you’re in with a good shout. Highly-targeted portals and websites such as AutoTrader.co.uk, TheVanWeb site.co.uk, ContractHireAndLeasing.com, Save MoneyOnCars.co.uk and search engines like Google make sense to use. ‘Focusing on other smaller automotive portals is generally a waste of time and effort,’ explained Really Good Domains chief Dave Timmis. ‘They simply don’t have the traffic and your potential customers won’t find your site or offers. This is equally as wasteful as advertising contract hire on a site targeted at retail customers or advertising vans on a site that attracts car buyers.’ Timmis believes dealers should look at the major automotive websites for each of their respective sectors and choose a selection of the ones that give you the most targeted traffic. Don’t make the mistake of only picking one portal as they all have different audiences. ‘Try ContractHireAndLeasing.com for car leasing offers, SaveMoneyOnCars.co.uk for

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The internet may baffle many car dealers, but with most buyers starting the sales process online you need to learn the way of the nerd...

‘It’s all too easy to delegate web responsibility to the resident geek, when a talented sales executive would be far better placed.’ new and nearly new cars, TheVanWebsite.co.uk for vans and AutoTrader.co.uk for used cars,’ explained Timmis. But it’s not just the websites you use. The way you present your site is also very important and can dramatically affect the amount of visitors that make enquiries. ‘Think about where the link takes the visitor – deep-linking, where the visitor lands on the most relevant page of your website, is very effective,’ added Timmis. ‘Ideally, you need to link to the actual offer or vehicle being advertised.’ Also think about how easily a customer can get your contact details and whether you list directions to your showroom. And, as with all enquiries, internet-generated leads need to be handled promptly with ultimate professionalism and

knowledge. Emails need to be answered quickly – ideally immediately, or within two hours. Timmis’ stable of sites offers dealers the chance to advertise their stock to relevant customers. ‘Main dealers who advertise on our websites receive thousands of high-quality visitors per month to their websites, in addition to the same number of requests for contact details, telephone calls and emails,’ explained Timmis. ‘Many dealerships achieve more than 50 additional sales per month from advertising on our websites. Our most successful clients follow common sense advice by giving most exposure to their best deals.’ It’s also important to make sure all staff dealing with internet enquiries are aware of current special offers – it’s all too easy to delegate web responsibility to the resident ‘geek’, when a talented sales executive would be far better placed. ‘Successful dealers are those that educate and train every person in their business on how to use the web,’ concluded Timmis. ‘It’s everyone’s job to understand the different portals and how they can differentiate you from competitors, particularly for staff at the point of sale.’

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6/6/08 11:00:21

recruitment

uzzled?

You will be... finding the right people to slot into your business can feel like an impossible task. So how do you find the right employees for your dealership? Richard Aucock quizzed the experts for their top tips

ow do you tackle recruitment? Get your secretary to place an ad in the local paper and hope for the best? If so, here’s a message: you are missing out on the best people for the job. Just as customers come to you for expert advice, so too should you source word from the experts to tackle your recruitment challenges. This month, we’re launching a

new recruitment section, to help professionals like you find the best people for your jobs. To mark the launch, we’ve gone out and spoken to the country’s leading recruitment experts. These folks are the best around. All have pearls of wisdom to guide you towards sniffing out the best people for the job. All promise to save you time, money, frustration and the sheer despair

of seeing wrong person after wrong person. And all have spent their careers doing so. We’re not recruitment experts. These guys are. In the coming months, they’ll help us help you solve your recruitment problems. But in the meantime, here’s some thoughts on that perennial question. How do you get the best people to work for you? >

Finding the right candidate to slot into your empty positions is a tough task

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recruitment Many people in the industry believe the route guaranteed to get the best people is to use a recruitment agency. Linda Meehan, from Hot Recruitment, explains that agencies save time and boost the quality of the applications that land on your desk. How? ‘We carry out thorough initial screening, analyse CVs and interview candidates – all of which the client doesn’t have to do,’ explained Meehan. Kerri Farringdon turns the question around. ‘If you were, say, a senior finance director looking for a new job, would you apply to a job in the paper, or would you go to a specialist recruiter in that field?’ Don’t forget, says Meehan, that specialist agencies can call upon powerful databases. ‘We have cultivated these over years – ours is the golden nugget of the company, which gives us access not only to every form of media, but exactly the right areas within that media to get the best results. We can quickly pinpoint the best the market has to offer for each candidate – something that would cost a dealer, if they did it on their own, thousands of pounds.’ Colin Morgan, from Auto Allocations, strongly recommends you choose a local agency. These guys, he explains, are best placed to understand the local dealerships and applicants. ‘I’ll always go along to new clients and meet them face-toface. This means I understand how they operate, what they’re all about, what they’re looking for.’ A good recruitment agency will do this, and help you find more suitable candidates as a result. Speak to fellow local businesses about recommendations, says Farringdon. Word of mouth is worth a great deal in this industry – ‘people will always recommend a good service. If you’re not sure which way to go, try asking around. It’s a good sign if the same names keep cropping up.’ If you’re a main dealer, check out the manufacturer’s own recruitment system. Ben Kilpatrick, from Renault Resourcing, says the maker’s UK-subsidised recruitment tool follows the same rules as a conventional agency, but specifically for Renault dealers. Bringing it in-house removes commercial frustrations such as competition on cost and with other brands. It also raises the profile of a career with Renault, and enables a much more targeted recruitment process. As manufacturers improve quality standards, says Kilpatrick, so the need for skilled technicians

‘If you were a senior finance director looking for a new job, would you look in the paper?’

has levelled out. The recruitment demand today is for skilled salespeople, and a good recruitment agency will appreciate and respond to this demand. It will also ensure it has the knowledge base to manage salespeople in the right way to ensure all parties benefit. Here’s one to ask yourself, though. Have you considered apprenticeships? Lee Acton, from Autoskillnet, promotes them as a great way of attracting school-leavers into the industry.

‘It’s incredibly competitive – schools want kids to stay on, and the market for 16-17 year olds is keen. But it is a great way of sourcing those after a career in the industry,’ he says. ‘After a few years, these people are often the ones on a committed and accelerated career path in the business.’ A great way to discover potential apprentices, says Acton, is to take on 14-16 year olds for Saturday jobs or holiday work. If they’re ap-

Motortrade-Mail > Area Sales Managers > OTE £70,000 Working for a national remarketing internet company based in London, you will be supplying a new innovative web-based concept to the motor industry. Responsibilities include developing a dynamic client base to the demographic area you are designated. You must be self-motivated with strong sales management and organisational skills. The position is on a self employed basis. Full comprehensive training will be supplied on appointment. Motor trade experience would be an advantage but not essential. You must be computer literate, own car and mobile phone are essential. Interviews will be held nationwide. CVs to: National Sales Manager, Motortrade-Mail, 32 Heathland Road, London, N16 5NH. Or email jon@motortrade-mail.com

38 CarDealerIss4.indd 38

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Top Tips for candidaTes KNOW YOUR SKILLS Just what are you great at? It’s not necessarily what you’re doing now. If you’re looking for a new job, try to work out what you’re seeking. Don’t be afraid to sound people out – discreetly, of course… TAKE YOUR TIME You won’t find the right job straight away. Once you’ve made the decision to start looking, don’t get irritated after a week and jump into the first position you’re offered. You’ll only end up going through the same process again in a few months. POLISH YOUR CV Keep it simple, keep it up to date, keep it neat and tidy. There is loads of advice on how to write a great CV out there: follow it. TAILOR YOUR CV TO EACH JOB Every position is different, so your CV should reflect this. You won’t impress potential employers if you witter on about aspects irrelevant to the job. PREPARE FOR THE INTERVIEW Apart from knowing exactly why you want to work for the company, spend time finding out more about them. This will show the interviewer just how serious you are. DRESS RIGHT Business-like, clean and tidy clothes with polished shoes, tidy hair and (for blokes) a shave. You don’t have to dress like you’re getting married – be sensible, be smart but be comfortable. And don’t go overboard on the aftershave or perfume.

When you’ve got applicants lining up for a job at your dealership, how can you be sure you’re getting the very best?

proaching you, it’s because they’re keen to work in your business. That’s one hurdle out the way right away. Giving them work means they get to know the business, the staff, and you get an extended period to judge their potential. Often, the apprenticeship is a natural progression – and a fantastic way of getting top-drawer trainees. However, the recruitment process starts before you even think about placing ads and the like. Jimi Matthews, from Perfect Placement, stresses

how important it is to know what you’re looking for. ‘Don’t fall into the trap of simply saying that, well, the last guy was awful. You need more to go on, in order to find exactly the right person.’ It’s also important you know the timescales you’re looking at, he explains – so you know whether to include people with longer periods of notice with their current employer. Consider the job ad carefully – all applications will stem from it, so it’s vital you get it spot on. >

TURN UP ON TIME Sounds obvious, but do you know how bad the traffic is around interview time? Do you know exactly how to get there, and where to park? 20 minutes early is FAR better than five minutes late. HAVE SOME QUESTIONS IN MIND The dreaded ‘do you have anything to ask us?’ should see you asking why has the position become available, where does my job sit within the team structure, how will my performance be measured. Not, ‘I think we’ve covered everything’. THINK POSITIVE You’re in with a shot, not there on a whim. The job could be yours by the end of the interview. So think that way and calm yourself with deep breaths. Nerves are inevitable.

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recruitment

‘Considering someone with a strong record from outside the industry may just give you a better person with lower salary demands.’ Don’t mis-sell, but do give an overview of the company and the job, what responsibilities someone will have, what they’ll be doing and the experience they’ll need to bring. Remember, applicants may be basing their next career move on this advert. It has to be correct. It’s a good idea to speak to the person currently doing the job, and get their input on just what’s needed. Remember why people move, says Kilpatrick – money. Recruitment is thus very competitive and very salary-driven. ‘People move for pennies, despite the investment you may have put in people,’ he explains. ‘Some also use job offers as a way of improving their current position.’ You should therefore be savvy when dealing with recruitment, and don’t become blasé or confident that, once you’ve advertised a job, your work is done. But what if you go the agency route – how should you deal with them? Treat them like a consultancy, advises Meehan and Matthews. Meehan says: ‘We’ll have a chat to find out just what you want – only then will

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we go to market. We fully appreciate time is money, and will ensure our approach reflects this.’ ‘Ask about preferred status,’ adds Matthews. ‘Sometimes, we can offer reciprocal promises, such as the availability of candidates.’ Sarah Aldous, from Top Car Recruitment, observes automotive recruitment is far different to conventional recruitment, and that only agencies with the right experience will appreciate this subtlety. ‘It is less pushy, more measured: experts know dealers prefer to work at their own pace, whereas non-specialists are a lot more aggressive. There is an unwritten bible in the trade, as to what everyone does, what to look for and so on. Only specialists appreciate this,’ says Aldous. ‘I know what to look for in applicants, so will only send quality to interviews, rather than quantity. You may not hear from me for a while – but the people I’ll send through will certainly measure up.’ Meehan warns of an undesirable practice. Beware the ‘spray and pray’ merchants. This

lot simply take a CV from an internet site, and send to every possible dealership, completely unsolicited. Only if the dealer responds will they contact the candidate – who, of course, won’t be screened by the agency, which leads to a mass of irrelevant CVs and can pump up pointless interviews of unsuitable candidates by a quarter. They are to be avoided like the plague – the recruitment industry is trying its hardest to stamp out such dodgy methods, but we should all be on our toes. When job applications start to come in, be open-minded when viewing them. Kilpatrick says that many dealers simply say ‘I need a salesperson – they’ve got to have been doing it somewhere else first’. This can compound the spiralling salary problem – whereas considering someone with a strong record from outside the industry may just give you a better person with lower salary demands. ‘This is something a good recruitment agency can help you with, if you’re willing to be flexible. Longer-term, this is a smarter approach,’ explains Kilpatrick. When studying CVs, Michelle Hall, from >

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recruitment ‘Long periods out of work could signal a criminal background, and watch out for date overlaps too – they might not be telling the truth.’ Automotive HR can’t overstate the importance of a stable work history highly enough. ‘A candidate with several short-term employers (say, less than a year) could mean a lack of commitment on their part. Look for gaps in employment and ask for an explanation,’ she explains. ‘Long periods out of work could signal a criminal background. Watch the employment dates for overlaps, too. This could be a simple error – but might also indicate that the candidate is not being truthful about previous employers. Ask the person to explain it, and be sure to call those employers and verify dates of employment with them.’ So you’re ready to call people in for interview? Matthews advises you ask the agency to set it up. ‘This means the candidate has the best chance of being prepared. Some clients, especially those higher up in the company, are used to autonomy – but the agency has the expertise to give everyone the best possible chance.’ Don’t make your pool of people shallower unnecessarily. Also try not to contact people as applications come in. Rather, wait until the closing date. This will give you a much clearer

42 CarDealerIss4.indd 42

picture of what’s out there. Don’t forget your instincts either, says Farringdon. You can generally tell from the first phone call whether a person is of the right calibre to call in for interview. Of course, a recruitment agency will already have done this, she explains – ‘we always conduct a telephone interview first, before asking people in for interview’ – but it is still something to consider at the interview stage. However, during the interview, consider your gut feeling, but also remember it’s meant to be an environment to bring the best out of the candidate. Keep it relaxed and non-confrontational – you want clarity and understanding, and nervous candidates sometimes need help here. You’re not playing cop shows, trying to catch people out. Remember this – at some point you’re going to have to make a decision. You won’t be doing your job if you’ve conducted a poor interview that left you with no idea what someone was about. And the business could suffer as a result. Meehan advises you to adopt a professional attitude, remembering the need to be welcoming. ‘Who’s the scared, nervous one? The candidate. You want them to relax through

this traumatic experience, so you can discover their best points. After all, the CV should have shown if they were technically up to the job. The interview will establish whether they’re a good brand ambassador for your company or not. Only by getting them to relax will you see the real them.’ And Matthews advises you use B-R-A-I-N. Simply, consider the Benefits of the applicant to your business, the Risk attached with them, whether there is an Alternative already in the business who could be promoted, your Intuition before, during and after an interview (remember, salesmen are there to sell – including themselves)… and how much the business would suffer through doing Nothing. And to turn all this completely on its head, can you afford not to recruit? Matthews advises you work out the cost of, say, a technician’s ramp sitting empty – two weeks’ work will easily cover a month’s wages for an employee. ‘I spoke to a dealer once who admitted he was banned from recruiting. I worked out how much the empty bay was costing him, how much we’d cost to fill it – the difference was four times in our favour!’ There you have it. Recruitment. Not as daunting as it sounds…

CarDealer

6/6/08 11:00:33

Headroom? ...We’ll show you headroom

If your current role feels cramped, with no sign of development, maybe you should see what we have to offer?

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0845 601 3778 Applications directly to dealerships will not be accepted

CarDealerIss4.indd 43

6/6/08 11:00:35

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Peering into the lives of the motor trade...

ON THE SPOT Name: Craig Brown Age: 40 Job: Signs Express managing director my mouth is and buying Signs Express Ltd.

Name: Craig Brown Age: 40 Lives: Norwich Any family? Wife and 2.2 kids (0.2 = the two puppies that have recently joined the Brown household). What do you drive? BMW 5 Series and ride a KTM 990 Adventure.

What’s your mobile phone ring tone? Mission Impossible. What was the first record you bought? Adam and the Ants, Prince Charming. What’s your favourite film and the last one you saw? No one favourite film but I do like the old John Wayne westerns and if we are talking about the last film I saw at the cinema I think it was Hot Fuzz.

What was your first job? My first job was as a shop assistant in a men’s outfitters. Started on the Monday, had another job interview on the Wednesday, handed in my notice on the Friday and started at a sign company in Norwich the following Monday… and have been in the sign trade ever since! What was your first car? A Triumph Spitfire – which cost me more to insure than it did to buy! It was a dog of a car but it looked cool and my memories of the car are much fonder than the actual reality of owning it. Who do you work for now? Signs Express Ltd. What does this involve? Dealing with our 80 plus franchisees and their day-to-day business issues. Negotiating and extracting information from our key suppliers, while keeping a great team of support staff on the straight and narrow. What are your job’s biggest challenges? Having enough time to make sure that everyone in the organisation feels valued and an important part of the

Favourite football team? Norwich City. Favourite holiday destination? I love Spain in the summer, the French Alps in winter, the States in the fall and the UK all year round!

‘My top tip? Look after your customers or someone else will.’ company’s development. Any downsides? Not really. As a whole I get to deal with people who are self motivated and driven to make their businesses successful.

ment style! I like the hands-on approach to management and will try to make sure I understand how everything works.

How much do you earn? Enough to be getting on with but not enough to be obscene.

What newspapers/magazines do you read? Any newspaper lying around, but I regularly read the Eastern Daily Press (local paper), sign trade magazines and bike mags.

Do you have an average day and how does it pan out? It can be very reactive rather than proactive, but that might be more to do with my manage-

What is the most expensive thing you’ve ever bought? The obvious answer would seem to be my house but in reality it was putting my money where

Have you got any superstitions? In business no; in sport, too many to list. What is the biggest challenge car dealers face? If you don’t know you’re in trouble. What would be your number one tip for car dealers? Look after your customers or someone else will. And finally... what’s your motto in life and business? Stolen from one of my business mentors who doesn’t believe in problems – ‘We are where we are, now what are you going to do about it?’

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

CarDealer

CarDealerIss4.indd 45

45 6/6/08 11:00:39

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6/6/08 11:00:41

cult cars tried and tested

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

Wish you were here... E

They also had the incentive to earn from the end-of-year pot and so there was a real financial benefit to them taking the trouble to claim warranty items rather than the easier route of simply billing sales. The benefit to the sales management was they could spend more time focused on selling rather than querying invoices. Plus it was much easier to calculate the day-today department profit. Believe it or not, at the end of the 12-month period the actual average real cost of prep and aftercare per unit spent by the service department had come down slightly on the previous two years plus our CSI had increased. As they say ‘a customer with a problem sorted efficiently is a more loyal customer than one who never has a problem!’

very month Autotrade-mail’s Kevin Watson recalls those good ideas, hints and tips that can really help you. If you’ve got a good idea that other dealers should know about, get in touch with Kevin using the details below or call him on 0870 2000 848 – he’s offering £100 for the best idea every month!

Personal postcards One dealership has told me of a very simple, cheap and effective marketing solution. All of the sales team have a stack of seaside postcards with the words ‘Wish you were here’ on the front and when they have spoken to a customer that they have not closed on the day they simply hand write – and that’s important – on the reverse: ‘Thank you for your visit to our showroom today.’ Then they pop it in the post. The sales team still let the dealer management system, along with the database operator, do their stuff, but the simple immediate action really seems to hit the button. In this day and age when so many consumers are bombarded with printed automated matter, it’s quite refreshing to receive a light-hearted, hand-written communication that someone has dealt with so immediately.

Morning shout

Price fixing As a very busy general sales manager I used to we agreed that for the forthcoming year I would find myself at the end of a month signing off a give the service manager a flat £350 per unit to huge amount of used car internal invoices from prepare and look after our used cars (including my service department and more often than any aftercare). not questioning some of the logic and costs Any money left in the ‘preparation pot’ at the applied. This was terribly frustrating which neiend of the year could be posted to the service ther pleased the service team, the salesman or my department profit (less a ‘bit of fat’ to cover superiors. aftercare in the new year). To come up with a solution, we looked at the The benefit to the service department was that previous two years’ reconditioning costs and were they could look after the sales customers more struck by the fact that as an average it was very efficiently. If there was a problem they could consistent. With used car mechanical preparation make a decision there and then and did not have ATO45 Car Dealer Ad 20/2/08 15:21 Page 1 and aftercare averaging around £300 per unit, to refer it to the sales department.

I have been told about a sales manager who was one of the best their group had ever witnessed (apparently she would have wiped the floor in The Apprentice). Before being headhunted she increased the showroom performance tenfold. Every morning, without exception, she would conduct an 8.55am ‘shout’ – basically she stole this idea from one of her buddies who worked in an extremely successful high street retailer. The sales team would gather around the scoreboard – which would display numbers of the previous day’s activity such as enquiries, demos, sales and bolt-ons – and one of the team would say what they had considered they had done poorly as a team and another would highlight what they had done well. The obvious rationale was to do less of the poor stuff and more of the good. The amazing thing was this was achieved within five minutes, leaving the team refreshed and knowing what they needed to do that day. Initially they all found it a bit ‘USA’, but it soon became a real team bond – a ‘haka’ which provided true tangible benefits.

That was a good idea!

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

Run by dealers for dealers Est 1999

CarDealer CarDealerIss4.indd 47

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

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

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

47 6/6/08 11:00:43

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w: www.codeweavers.net/yourcarloan e: enquiries@codeweavers.net t: 0870 443 0888 f: 0870 443 0889 CarDealerIss4.indd 48

6/6/08 11:00:49

cover up

Advertisement feature

find the perfect partnership I

N these uncertain times for car dealers, it’s important that the companies you choose to do business with can offer you something more – and here’s one that can! Mapfre Assistance is a new division from Mapfre Abraxas, one of Europe’s leading insurers. The new subsidiary has a whole stable of products to help motor traders better their business. Providing insurance, reinsurance and financial services in 46 countries across the world – Mapfre is the ideal partner for your business. ‘Our global background and 10 years’ experience on the automotive pecuniary losses market gives us the knowledge to provide cutting-edge products to car dealers in the UK,’ explained a spokesman. ‘Mapfre Assistance has been set up specifically for the independent used car dealer, and offers an extremely competitive range of warranty, GAP, PPI, tyre and MOT insurance products.’ One example of the firm’s high-tech solutions is the way it issues polices via the web. The internetbased system allows dealerships to register all Mapfre Assistance products and is easy to use. It will produce the Certificate of Insurance and other documentation required by the ICOBS which includes policy terms and conditions, policy

of being permanently unable to return to work due to accident or sickness, Mapfre Assistance will keep paying the monthly installments until the end of the policy. Mapfre Assistance has warranty products too. It offers three and five star levels of cover, with or without roadside assistance and with policy terms from three to 24 months. ‘There will be a warranty that fits all your customers’ needs and budget,’ added the spokesman. ‘Our warranties are even transferable to a new private owner.’ Tyre insurance from the firm protects against the most common reasons for rubber damage. In MOT insurance could boost your profits the event of a tyre being punctured or vandalsummary and the statement of price. ised, the policy is designed to pay for the tyre to Other products include GAP insurance. If a vehi- be repaired. If this is not possible the policy can cle is written-off by an insurer the customer won’t pay for a replacement. usually receive the amount they paid for the Finally, MOT insurance can protect your customvehicle or took out the finance for – GAP provides ers against their cars failing the all-important test. a solution whereby this shortfall is bridged. Total If a vehicle flunks, the insurance provides cover Loss GAP and Finance GAP are available. for up to a certain limit per MOT test of parts and Payment Protection Plan Insurance is on offer labour, thus helping the vehicle pass the retake. too and this pays the monthly finance re-paySo in these times when profits are being ments instead of the policyholder if they lose squeezed, isn’t it about time you looked into their income due to an accident, sickness or invol- collaborating with someone new? The profit untary unemployment. In the unfortunate event potential could be huge.

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

CarDealer

CarDealerIss4.indd 49

49 6/6/08 11:00:51

competition

WIN! Route 66 sat nav system D

ON’T say we never give you anything! With summer just around the corner, and the chance of snatching a few days away in one of your favourite demonstrators a distinct possibility, we’ve got together with Route 66 to give away TWO portable sat nav units! Unlike some magazines that make you text a

premium rate number or dig out a postcard from the back of your drawer, all you have to do to get your hands on one of these £200 units is email james@blackballmedia.co.uk with your name and address and ‘Route 66’ in the subject bar. It’s as simple as that. So why would you want one of these cracking kits? Well, the top class portable sat nav units feature high definition super sharp maps displayed on a 4.3-inch touchscreen. Based on the award winning navigation software from Route 66 that made its debut on smart mobile phones, the Maxi units feature mapping for the whole of Europe. Destinations can be input via postcodes or standard address entry and there’s a decent list of points of interest including hotels, restaurants and petrol stations among a variety of other useful attractions that you can navigate to at the touch of a button.

The Maxi comes with a power lead that plugs into your 12v cigar lighter socket and has a built-in rechargeable battery too. For those of you that sometimes stray over the speed limit, the handy speed camera spotting software will help. The unit alerts you when fixed traps are coming up and can warn of well-known mobile speed camera sites too. There’s photo viewing software included, so you can store pictures and show your friends when you’re out and about, while Lonely Planet travel guides give you mustread information on local culture, activities and accommodation at your destination. It’s a unique extra and can provide details on more than 500 locations across the globe. For more information on the Route 66 Maxi log on to www.66.com or for your chance to win one of two we have to give away simply send that email to the address we mentioned earlier and we’ll add your name to the draw. Winners will be picked out of the hat on Friday, June 27.

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CarDealer

6/6/08 11:00:56

If you had more leads, could you sell more cars? With 9 out of 10 car buyers doing some or all of their research online, the Internet cannot be ignored as a source of quality leads. Is your site coming up on the first page of results on Google for the searches these potential customers are actually doing? BuyYourCar.co.uk does. Call BuyYourCar to find out how you can be part of the fastest growing independent car sales site in the UK.

CarDealerIss4.indd 51

6/6/08 11:00:57

Record every phone call in & out of your business VoiceSafe offers complete call recording for any business in the UK. This revolutionary solution provides your business with an affordable, secure and simple to use tool to monitor and develop activity... ! Make sure that new business enquiries

are recorded and followed up ! Use calls to train and develop your staff and their telephone skills ! Monitor levels of customer service and even score calls! ! Listen to telephone conversations to verify that orders or information are correct ! Listen to the last call you made to a customer to remind yourself of any commitments you previously made ! Reduce personal use of the business phone system ! Improve compliance with Regulatory Bodies ! Save money on your phone calls to mobile numbers

Call 0845 421 5050 www.voicesafe.co.uk

Call us now to arrange your demo CarDealerIss4.indd 52

6/6/08 11:00:59

products 1. TomTom One T (Version 4)

Price: £150 Contact: www.tomtom.com THE TomTom One isn’t the world’s best selling sat nav for nothing! This new version four model has just arrived on our shores and boasts a host of clever technologies. Most impressive of the lot is the traffic jam spotting software. Using a TMC receiver, the unit picks up hold-up announcements and warns you of those that are relevant to your route. Also new is a clever collapsible windscreen sucker that folds flat to the back of the unit making it easier to carry in your pocket.

2. Jabra BT3030

Price: £40 Contact: www.jabra.com IF you can’t face wearing a Bluetooth handsfree kit on your head, then how about this? The BT3030 is designed to look like a dog tag and hangs around your neck. The key fob-sized unit is simple to set up and connect to your phone and calls come through clearly via the supplied noise-cancelling headphones.

3. Gear4 Duo

Price: £150 Contact: www.gear4store.com THE Gear4 Duo is no ordinary iPod speaker system – this one has a clever trick up its sleeve – a detachable speaker! It means you can keep the unit in your living room and still listen to music in the garage or in the garden. The satellite speaker simply pulls away from the base unit and a tough metal stand pops out.

4. Black and Decker Pivot Auto

Price: £40 Contact: www.blackanddecker.eu THE new Dustbuster Pivot Auto has been designed specifically with car cleaning tasks in mind. It features a clever swivelling head that can pivot into 10 different positions, plugs into your 12v lighter socket and has a five-metre cable to reach around your car.

5. Gerber Flik

Price: £55 Contact: www.gerbergear.com THIS clever new multitool from market leaders Gerber features a unique way to open the pliers. You simply squeeze the two buttons on the handles with your thumb and forefinger and with a flick of the wrist the pliers shoot out of the end. There are wire cutters, saw, scissors, fine blade, serrated knife and small, medium and crosshead drivers hidden in the handles too.

6. Armor All Heavy Duty Wipes Price: £3 From: www.armorall.co.uk OIL, grease and grime collected by your car can be a real pain to shift – especially if you’re nowhere near a tap. These Heavy Duty Hand Wipes from Armor All are designed to shift the slime quickly and easily.

7. CarPlan Power Plus

Price: from £5 Contact: www.carplan.co.uk THE new Power Plus range from Car Plan has a host of solutions to your power problems. Our pick is the 12v Multi Socket which splits one cigar lighter point into three and has a sticky pad so you can attach it to your car’s interior.

CarDealer

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53 6/6/08 11:01:31

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6/6/08 11:01:33

used cars

Trading Places z

...in association with ben

Kia’s still hanging about our current baton holder’s still waiting for the clarus to find a home – but Hs cars chief mark boyt’s confident it’ll be gone soon...

hen we launched our bid to raise as much money for automotive industry charity BEN by trading cars we always knew it wouldn’t go quite to plan! The car trade is a strange old beast and we’re certainly finding that as the Trading Places feature rolls on. With the industry taking a turn for the worst as the credit crunch bites, we know most traders are trying hard to concentrate on the job – paying the bills has to be at the forefront of any businessman’s mind. So when we called for an update on how our current baton holder – Mark Boyt of HS Cars in Chichester – was getting on, we had a funny feeling we knew the answer already. ‘She hasn’t gone yet,’ explained Mark, referring to the Kia Clarus that currently represents our baton. ‘But I’ve got no worries she won’t go soon. To be honest, it’s a little bit different to what we usually sell so it’s proving to be a somewhat different beast.’ The Clarus is a V-reg, 70-000-mile one owner example of the Korean saloon and was taken in by Boyt in part exchange for a Mondeo.

The Kia Clarus – our next ‘baton’ for BEN – and below, HS Cars who’ll be selling it

The gold-coloured Kia is quite a change for Boyt’s site which specialises in niche cars. Recent additions to HS Cars include a twin-turbo V12 Mercedes CL600 and a supercharged Range Rover.

‘A lot of people are trying to get out of these big-engined gas guzzlers,’ Boyt told Car Dealer. ‘Fuel costs are beginning to hurt people, not to mention the tax implications. However, these specialist cars make

You can help raise cash for ben too! THE plan is simple – raise as much money as possible for automotive industry charity BEN. How? With a motor industry-inspired relay race and your help. Autotrade-mail donated our first car and we aimed to sell it for as much money as possible. We managed to get £695 for it, and impressed with our efforts

Autotrade-mail made it a round £1,000. Now Mark Boyt holds the cash in the Kia and will be attempting to make even more! We still need willing dealers to take up a leg of the relay. Call Car Dealer on 023 9252 2434 or email james@blackballmedia.co.uk if you’re willing to help out a worthwhile charity.

great buys for local people who don’t do many miles and want something a little bit different.’ Boyt admitted market conditions were tough, but that he was still enjoying a decent run of sales. ‘Last month looked rough, but then really picked up towards the end and we’ve had a cracking start to June,’ he said. But back to the Kia. ‘I think I’ll stick it in Auto Trader or list it online and that way we’ll get some interest.’ Boyt’s aiming to get £1,495 for the Kia. As soon as he shifts the saloon our next baton runner is poised to take over. Tim Stentiford of Tailored Vehicle Leasing, also based in Chichester, West Sussex, has agreed to run the next leg. We’ll be catching up with Stentiford next month as our quest for BEN cash continues…

It wouldn’t have been possible without...

CarDealer

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55 6/6/08 11:01:36

used cars

Used car dealers starting t cap’s latest research shows dealers are starting to feel the effects of the credit crunch

hile the deterioration in used car market conditions this year has been well chronicled, automotive media focus tends to be on car values and stock volume rather than the experience of those at the ‘coal face’ – the professional used car dealer. But dealers are going through a traumatic time at the moment, as nationwide research reveals. During the spring period, which is usually buoyant for retail dealers, almost every measure of performance revealed problems. Asked to compare the period this year with the same time during 2007, 73 per cent said it was more difficult to sell cars during April and May. Just 16 per cent reported that they felt conditions were not significantly

different this year while a die-hard nine per cent reported an improvement. Research for CAP Black Book indicates dealers remain determined to work through this period of uncertainty and caution among consumers and this is signalled by a resolutely positive outlook. The majority of dealers remain realistic about the challenges they face in the current market but continue to express expectations that conditions are about to improve. What seems to mark this particular period apart from other difficult times in recent years is the determination of dealers not to ‘talk the job down’. In an industry where sentiment is a strong driver for performance, this is to be welcomed. This is especially relevant in the case of current conditions which, CAP believes, are largely caused by consumer mood and caution, rather than fundamental underlying problems in the market itself. For example, personal insolvencies are down on last year but 2008 is seeing

Consumers are putting car purchases on hold

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Wild child’s back and even more mental

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Check Mate

Avoiding burnt ﬁngers

Wonder Web

Maserati Quattroporte Ferrari firepower, BMW luxury but is Italian a real rival?

How you can sell insurance

Geneva Show

What you’ll be selling soon

Scam!

Crooks’ latest con revealed

Interweb

How to boost proﬁts online

New owners, new limited edition monster

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Supercharged V8 | 420bhp | £80k | And only 200 to be built

Why you should check every car

TRADING UP

FIAT 500 It’s hit the UK, but

can Fiat’s new baby out-mini the Mini?

LOTUS EUROPA Think of it as an Elise with a &MFDUSJD J PO UIF XBZ roof. But who’ll buy it?

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The hunt for new dealers is on

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TESTED: AUDI RS6 + BMW M3 DROP TOP Plus! The inside story on luxury brand Inﬁniti’s UK launch plans

if the address carrier sheet that came with your magazine said ‘address confirmed’ anywhere on it then your details are already confirmed – if it didn’t, you need to log on and fill out your details now.

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CarDealer

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...in association with CAP

g to feel the pinch consumers playing a waiting game. While there is some evidence that finance is becoming more difficult to obtain for ‘big ticket’ purchases, in general consumers are tending to hold on to their cash while they await the outcome of the credit crunch and general economic worries. For the best chance to thrive in such conditions, dealers will need to be mindful of the trends which have been developing over some time. Principally these relate to engine size, fuel consumption and the growing costs of CO2 emissions in the changing tax regime. People have not stopped buying used cars. However, indications are that increasing numbers are adopting a wait-and-see attitude due to concerns around the economic climate. Those that have to purchase are increasingly likely to vary their choice to suit their individual budget or to mirror their own confidence in the future. We expect many consumers to possibly revise their choices due to their own

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individual economic circumstances rather than desert the market altogether. This view is supported by research among used car dealers. For example, 69 per cent of dealers report that rising fuel costs are encouraging their customers to move into smaller engine cars while a further five per cent say this has not happened yet, but that they expect it will. Only one-in-five believe motorists will continue to choose the type of vehicles they do today. Another expectation at CAP is that customers will increasingly seek slightly older cars rather than cease buying at all. Again this is supported by research in which a significant proportion of dealers report that it is already happening. Just seven per cent report a desire among customers for newer cars and around half say they are detecting no change. The challenge dealers face in the current market remains the same as ever. It is a case of meeting demand and if that means changing stock profile then that is what dealers will do.

Irish eyes aren’t smiling RESEARCH by CAP indicates that market performance is not currently uniform and that dealers in some areas are having a better or worse time than their colleagues elsewhere. For example, dealers in Northern Ireland seem to be suffering the toughest trading period of all in comparison with the rest of the UK. When they were asked whether the recent period was more difficult than the same time last year the overall response saw 73 per cent of dealers saying that it was. However, when the figures are broken down by region this figure climbs to 90 per cent in Northern Ireland, where no dealers at all reported an improvement. Compare this with Scotland, where the figure is 62 per cent, or the south east where it falls to 60 per cent, and regional variations in used car sales performance become evident. Dealers have also been asked whether their customers are moving toward smaller-engine cars, in view of CO2-based taxation and rising fuel costs. While the national figure is 69 per cent of dealers reporting a definite move toward smaller engines, in the north west that figure climbs to 100 per cent.

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Sub-Prime Time

he Chinese have a saying: ‘May you live in interesting times.’ And never has it rung more true. Some finance companies have withdrawn from the main market already, we’ve seen changes of finance company ownership and some large dealers are already trimming back for the hard days ahead. Considerable changes are being made to underwriting policies, and we’re seeing a significant shift to the categories in which customers are being assessed for risk, with a growing number of customers being given a non-standard status, while prime customers are putting off purchases if they can. So, we are indeed living in interesting times! One thing is for certain, change is inevitable and necessary. It’s not for me to say what changes you should be making to your businesses, but if I can provide you with an overview of what I think will happen in regards to finance and make some suggestions, perhaps this may help you make some important decisions. With concerns over customer stability, finance companies will focus on known good risk customers for renewal opportunities, and will be targeting these directly. Why not consider your own marketing strategy to contact customers you dealt with 18 to 36 months ago (especially if you sourced funds from a finance company with their own retail sites). I urge you to re-establish relationships, let your customers know you’re ready to help them again, and if the customer is not renewing yet, get a diary date to contact them about the time they will be renewing their car. With the non-standard customer market growing and prime customer market slowing, you need to decide what customer type you’re attempting to attract, where you’ll be able to finance them and stock accordingly. Be careful of advertising directly for customers with

‘With the non-standard customer market growing, dealers need to decide what customer type they’re trying to attract.’ credit problems as many finance companies are now loath to take these customers on. Frankly, a lot of customers that were previously prime will not consider themselves to have had credit problems, and will be turned off by this type of marketing. With unsecured lending continuing to tighten, pointof-sale finance and in particular HP is having a resurgence, so make sure all your sales staff are making the most of this and offering every customer this competitive source of funds, and generating much-needed F&I income for your business. On F&I income, some finance providers will be cutting commissions back, so review your existing finance suppliers and change them if appropriate to ensure you’re maximising your income. This might be the time to consider direct relationships, especially if you’ve allowed a third party to place your business in the past. This is just a brief overview, but your finance providers should be able to help you with the detail, from enhancing sales techniques for POS, clarifying finance provider stock preferences, offering you forecourt marketing materials, and even re-contacting previous applicants on your behalf. As I said, interesting times...

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

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Car Dealer is published Contributors by Blackball Media Ltd (Company No 6473855) Richard Aucock, Stewart and printed by WarJames, Duncan Chappell, ners. All rights reserved. Conditions of sale and supply include the fact Car Dan Harris, Bob Hume, Mike Dealer shall not, without our consent, be lent, Hind and Kevin Watson resold, hired out or otherwise disposed of in a mutilated way or in any unauthorised cover by Thanks to... way of trade or affixed to or as any part of a publication or advertising, literary or pictorial matter Justine Hoadley, Tim Marlow, whatsoever. Car Dealer is fully protected Danny Lee, Tim Naylor, Dave by copyright and nothing may be printed Timmis, Bernard McGranaghan wholly or in part without permission.

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0115 946 6370

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

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