Car Dealer Magazine: Issue 42 by Blackball Media

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Chevrolet cruze

Good enough to put the boot into the Focus? P41

Issue 42 | September 2011 | CarDealerMag.co.uk | £3.50

MUM’s the word Recession-busting £99 per month cars tested - by the editor’s mum!

FEATURE

NEWS

the car dealer Guide to the sales process p61

AWARD winners

car dealer mag launches used car awards p11

YOU rate the best car manufacturer and motor trade suppliers

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The right cars for your forecourt browse and buy a wide range of ex-fleet cars! r e t s i g e R FREE

HPI iCar Trade offers you: A wide range of different age and mileage cars. New stock that is constantly changing and updating. Refurbishment options â&#x20AC;&#x201C; sold as seen, BVRLA fair wear and tear. A clear on-screen price, which includes buyers fees and refurbishment where selected.

HPI iCar Trade is an easy to use website which will give you access to quality ex-fleet stock. You will have the opportunity to source, view and purchase these vehicles as soon as they are available for sale.

hpi icar trade Buying and selling made simple HPI and the HPI logo are registered trademarks of HPI Limited. ÂŠ 2011 HPI Limited. All rights reserved. HPI is a Solera company. Registered in England No.4068979 E&OE: HPI pursues a policy of continuous product development. Product specification and pricing may be subject to change without prior notice. Terms and conditions apply. &alls will be charged at local rate and may be recorded and/or monitored. HPI_iCAR AD_0811

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

Blackball Media Endeavour Quay Mumby Road, Gosport Hants, PO12 1AH T: (023) 9252 2434 W: CarDealerMag.co.uk Editorial Director James Baggott james@blackballmedia.co.uk Twitter: @CarDealerEd STAFF WRITER James Batchelor james.batchelor@blackballmedia.co.uk Twitter: @jrrbatchelor ADVERTISING Manager Duncan Chappell duncan@blackballmedia.co.uk Twitter: @CarDealerAds Advertising EXECUTIVE Jade Simmonds jade@blackballmedia.co.uk Twitter: @CarDealerJade

Contributors Simon Evans, Dean Smith, Mike Askew, Mike Jones, Big Mike, Alex Goy and James Litton

IGNITION.

than 1,000 of you Welcome. More filled in this year’s Car Dealer Power survey giving us a unique and powerful insight into your daily life. When we launched the survey last year we had one primary objective – to give you the soap box to tell it how it really is. Representing a car manufacturer as a franchisee can be a difficult relationship. Manufacturers have their ideas about how they want their cars sold and you’ve got your ideas too. It’s obvious that this can lead to conflict and with some surprising manufacturers languishing at the bottom of our table it’s quite clear that even premium brands don’t always get it right. What is very clear, though, is that those car makers which treat this business as a partnership can be very successful indeed. Mutual respect, listening to each others’ concerns and communication are just some of the key attributes to getting the partnership right. Among all the thousands of comments we received, there was one that really stood out for me, and it was this: ‘At the end of the day we all want the same thing – to sell cars. Sometimes I think manufacturers forget that we’re in this together!’ Sums up our survey quite nicely, I think. To find out which maker took home the coveted Car Dealer Power Winners’ award and which won the title of

Car Dealers’ Car of the Year turn to page 45 where the top 27 countdown begins. AWARDS The Car Dealer Power survey has two parts – while the first is for you to have your say about the manufacturers you represent, part two is for every dealer to praise their suppliers. After crunching the numbers we held a winners night at the top of the Spinnaker Tower in Portsmouth where we handed the champions and those in highly commended places their awards. The night was a huge success and all those companies that had the honour of an invitation went home with gongs. These gongs are so powerful because they’re the only ones voted for those that matter most – YOU, their customers! A Car Dealer Power award is a seal of approval that they do what they promise and deliver the results for their customers. You can find out why our select few received the commendations they did on page 56. Enjoy the issue.

James Baggott, Editor

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

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

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

WE HAVE MOVED!

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Safe&Sound Dealer Newhall Cars

Stand Your Ground with ‘Safe&Sound’ Whilst the economy begins to emerge from a recession, the rate of inflation still remains high and the continued lack of consumer confidence has undoubtedly had a dramatic effect on sales in the used car business. With customer footfall down, car dealers will need to look at alternative ways in which to entice buyers into their showrooms. It is vital for them to stand out from the crowd. In these toughest of trading conditions successful used car dealerships need to present customers with something a little different, a package that separates them from the competition and enables them to offer their customers total peace of mind when buying a used car.

2011 AWARDS

Winner Identifying this need for a competitive edge, the WMS Group have designed the ultimate warranty package ‘Safe&Sound’ that is good for both the motor trade industry and the car buyer. Their research showed that the top three things that car buyers looked for were safety, value for money and reliability – ‘Safe&Sound’ was developed to cover these requirements, plus take care of those additional worries such as whether the mileage is correct and if breakdown cover is provided. This unique programme guarantees customers complete peace of mind when making the important decision to buy a used car, and has been personally endorsed by Sir Stirling Moss OBE who describes it as 'a winning car warranty scheme for motorists in the UK.'

Safe&Sound is only available from a network of appointed dealers who embrace the very highest standards of customer service. The programme includes a wear and tear 6 month all mechanical and electrical warranty*, 60 point vehicle inspection, 6 month comprehensive recovery package, provenance check (HPI), mileage verification, independent valuation from the UsedCarExpert.co.uk and a dealer buy-back guarantee. This market leading, value added car warranty package is automatically included with EVERY qualifying vehicle sold by a ‘Safe&Sound’ approved dealership. Until now there has been no other programme like this for dealers that combine all seven elements. Newhall Cars of West Kirby were one of the first dealerships to join the ‘Safe&Sound’ dealer network and report that their customers have been very impressed by the scheme which has assisted the sales team in converting prospects to actual sales. Nick Marrs Group Sales Manager for Newhall Cars comments: “Offering our customers the innovative ‘Safe&Sound’ warranty package has undoubtedly (re-enforced) customer confidence in our used car offering and given them the ultimate peace of mind in their purchase. The scheme has added great value to our sales package and has most definitely set us apart from our competitors, giving customers a compelling reason to choose their car from Newhall as opposed to one of our rivals”.

To find out more information about the scheme visit

www.safeandsound.co.uk

*Wear and tear applies to vehicles up to 6 years and 60,000 miles at the policy inception date that have not exceeded 85,000 miles at the time of claim. A support product is available for vehicles which have exceeded these parameters. Please note that service items are specifically excluded.

Nick continues: “We believe that the six month mechanical and electrical warranty and the comprehensive recovery package is definitely the key selling point in this package. In the past many of our customers have remarked that the vast majority of car warranties are ‘not worth the paper they are written on!’ However this warranty really does give the ultimate protection and our customers have recognised this, so it is safe to say that this has definitely been a deciding factor in closing the sale. We have found that the benefits of buying a ‘Safe&Sound’ car appeals to all customer profiles and the personal endorsement of the scheme by Sir Stirling Moss is the icing on the cake as it re-enforces the brand integrity. When customers see the ‘Safe&Sound’ flags on our forecourt they know they are going to buy a safe car and make a sound investment.”

The WMS Group are currently recruiting dealerships nationwide that would like to become part of the 'Safe&Sound' network. In a highly competitive market under tough trading conditions 'Safe&Sound' really can help your dealership to gain competitive advantage and maximise profit opportunities. For further information, please call Eric Stone on 07789 682502 or Malcolm McIntosh on 07770 343330.

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

INSIDE.

COVER STORY

Which cars can be had for £99 a month and are they any good?

ISSUE 42 I September 2011

dashboard Feedback

HPI launches new service

New Used Car Awards launched

Ssangyong’s brand-building plan 14

MANUAL

Chevrolet Cruze tested

22 61

dealer academy Hyundai’s training scheme

Sales process Tips to catch every deal

‘‘

The wait is over – find out who has won big in Car Dealer Power 2011

You pick your winners

BIG MIKE

Does motorsport sell cars?

Around the World

My First Sale

Good problems

Hyundai’s dealer academy

Helpdesk: Ask Lucy

Big Mike

Interview: New Nissan MD

Finance

forecourt £99 Cars: Fiat Panda

£99 Cars: Toyota Aygo

£99 Cars: Ford Ka

£99 Cars: VW Fox

£99 Cars: Hyundai i10

Chevrolet Cruze

features 911 for 2011 update

Car Dealer Power Part One

Car Dealer Power Third Place

Car Dealer Power Second Place

Car Dealer Power Winner

Car Dealer Power Part Two

Guide To The Sales Process

DATA FILE

a month in A picture...

Our Car Dealer Power Awards night was a night to remember – not just because it was our first event and lots of people went away very happy – but because the team were thoroughly entertained by TV’s Mike Brewer. That man has some GREAT stories. Find out why he was with us on page 11.

Right Click

Auctions

Net Gains

The Statistics with Motors.co.uk

Suppliers Guide with Alex Goy

Trader Directory with James Litton 86 Sub-Prime Time

CarDealerMag.co.uk | 05

200,000 WARRANTY CLAIMS A YEAR. AND RELATIONSHIPS HAVE NEVER BEEN STRONGER.

Customer relationships are safe with us. With a Car Care Plan warranty, you know that there’s no hiding behind small print. Or stalling over pay outs. Instead, you get rapid-response call handling, prompt and efficient claims processing and a friendly, professional service that gives you, and us, a good name. It’s not just car buyers who think highly of us. It’s Car Dealer readers too. They voted us warranty provider of the year in this year’s Power Awards. Why not find out more about our highly rated, after-sales programmes. Call 0844 573 7591 or visit www.carcareplan.co.uk It could be the start of a beautiful relationship.

Car Care Plan Limited is authorised and regulated by the Financial Services Authority.

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

Used car ads for free bit.ly/FreeUsedAds Having seen the tweet from you guys today re the new website usedcar.co.uk, I thought I’d have a look as I have a number of used car motor dealers as clients. The first thing that you notice is that the style and the layout of the site is very pleasing to the eye, easy to read and even easier to navigate. I therefore created an account for one of my clients and within minutes I had all his stock listed, along with photos. I’ve used Dealer Edit, Motors, eBay, Glass’s and more and this has to be the simplest site for car dealers to enter their stock. What’s even better for them is its free – YES FREE! I know a number of dealers who are fed up with the high costs involved with some portal sites (won’t mention names) but this site could be a great step in the right direction for car dealers and private sellers. I wish this site every success. I’m sure this will get 2m viewers a month in the not too distant future. Steve Smith, via CarDealerMag.co.uk

Fleets’ ‘no’ to electric

bit.ly/1in5electric The news that less than one-in-five fleets won’t even consider electric vehicles (MIB Data Solutions’ poll), is concerning for the future adoption of the technology. It is time to call on leasing companies to take a proactive approach to ensure fleet managers are educated to make an informed decision. Replacing petrol vehicles with electric vehicles (EVs) is a daunting prospect. Despite the wellknown tax, fuel and environmental benefits, the initial outlay and uncertain future of this technology is still a challenge for fleets. This is a great opportunity for leasing companies to step up and take an active role in demonstrating the potential of acquiring EVs through lease, and to lead by example within their own businesses.

twitter comments

Talking good first cars for teenagers Until insurance companies start behaving fairly, parents will continue to ‘front’ for their children; £3k premiums for £1k cars. Via @au_tom_otive There’s only one car for youngsters that is affordable to insure; Quantum sports kit car. Seriously. Been looking for 17yo son. Via @CimaRacing First car for teenager? Classic Beetle is one of cheapest cars to insure for youngster with A Flux. Deathtrap though. Via @GLambertAE Skoda Fabia, surprisingly when we’ve sold them most have been to buyers under 20 due to being roomy and cheap to insure! Via @KSMotorsSales My first car was a pale puke egg yolk coloured

EVs won’t suit every fleet, but for a business looking to replace a delivery fleet that operates on predicted routes or within London, it could be the perfect option. What’s required is a full evaluation of each business’ needs to ensure the full potential of EV technology is not dismissed out of hand, without understanding the real costs and benefits. Jon Lawes, via CarDealerMag.co.uk

Tesco shouldn’t scare you

bit.ly/TescoScare We’re all the same, we like to feel, touch, smell.

Austin Allegro – much better choices now! Via @lynntulloch For a boy a Clio for a girl Micra, Kia Picanto, Suzuki Ignis Via @Baumee Peugeot 106, 1.1 or the 1.5 diesel. Via @domrosato All cars for teenagers cost a fortune to insure! Try a pug 107 / cit C1. Via @quattroRR Fiat Seicento. I’m assuming they have the usual teenager’s budget, which is as much as their grandparents can afford. Via @BarrieCrampton

As said James Litton ‘used cars are very unique‘. Personally I’m not worried too much. Of course we’ll all lose some sales as someone new enters the market, but I don’t think it will make the waves that they are hoping to make. Umesh Samani, via CarDealerMag.co.uk It’s just another case of Tesco using their massive brand to earn more money by branching out. They have banks, sell pet insurance, you name it they do it. I can’t see this taking off. Mark, via CarDealerMag.co.uk

MY CONFESSION

A rainbow-coloured welcome We have all been there, in the dealership bright and early and very, very hung over. Well this particular Saturday morning I was feeling perhaps the worst I ever have. I could still taste the night before in my mouth, furry teeth, red eyes and literally sweating alcohol. It wasn’t good at all. A middle aged woman walked into the showroom, and made a beeline for my desk. ‘Please no, not yet, please….’ I thought, but God wasn’t on my side that day. ‘Hi, I’d like to look at the 3 Series you have – the convertible.’ I slowly stood up and went to get the keys. I wasn’t going to do the whole ‘taking details’ stuff today, I’ll just get her to drive

it. Maybe the fresh air would do me good? I opened the car, stuck a trade plate on the dash and we headed out for a test drive. I was resting my head on my hand as the woman asked if I was OK? ‘Yeah, yeah. I just had a bit of a late one.’ She was surprisingly understanding to my wasted state. I thought perhaps she was trying to be cool and seem like she still got up to that kind of stuff at her age? Anyway, we got on to the motorway, and things got worse. The noise of the wind, the motion of the car and the smell of her overpowering perfume was making me sick. I tried to forget about it and carried on with the small

talk. Then, I gave in to the feelings. I just shouted ‘Sorry…!’ turned my head to the side and threw up out of the window at about 80mph. Covering the side of the car in chunks of kebab and rainbow colored liquid. The lady pulled over, and actually started rubbing my back! ‘Are you OK luv?’ As I turned to face her, with sick down the side of my face, I think she gathered I wasn’t. The lady was brilliant and even took me to the nearest McDonalds so I could use the toilet and clean myself up. We went back to the dealership and sat at my desk. ‘So, do you want the car?’ I said. She laughed: ‘You know what, I think I’ll pass.’ RG, Lincs CarDealerMag.co.uk | 07

DASHBOARD.

Heavisides

warranty wonders

Code of practice is good for us and for buyers

t sometimes feels as though the car industry is a bit of a soft target for Watchdog-style reports on occasional lapses in standards and while there’s always room for improvement, with over 7m cars changing hands every year, I’d say we do a pretty good collective job of keeping customers happy. Our market has taken huge steps forward in the past 10 years and the prospect of a Motor Codes code of practice for used car retailers is the perfect chance to add even more credibility to those improvements and to differentiate between dealers who treat customers fairly and those who are just in it for a quick buck. We shouldn’t underestimate the reassurance Motor Codes membership affords a business and it’s all positive; putting your heart on your sleeve and showing buyers you mean business is a potent symbol in your confidence and is one that brings buyers back time after time. Your promotions can have all the spin and gloss you like but words are cheap and without the assurance of a viable code of practice they mean nothing to buyers if you’re not prepared to be held to account more formally. At Car Care Plan, we’ve been working with Motor Codes for some time and I’m proud that we not only subscribe to the Motor Codes Industry Code of Practice for Vehicle Warranty Products but our products are fully compliant. It doesn’t change what we do day-in, day-out but subscription lets us make a very public commitment to buyers of our products. Not all warranty providers subscribe to Motor Codes and I wish they would; I’m absolutely convinced that voluntary codes of practice raise standards and provide buyers with extra layers of protection without them having to resort to regulatory bodies. I’m convinced that a Code of Conduct for used car retailers will help customers identify the most responsible business operators and that can only be good for your business. It will also demonstrate how much our market has changed recently and will provide the media with something new to think about – which other industry to target for their reports!

‘I’m absolutely convinced that voluntary codes of practice raise standards.’

Who is Tim Heavisides?

Heavisides is CEO of Car Care Plan, the UK’s leading provider of motor warranty and GAP products. 08 | CarDealerMag.co.uk

Ferrari records stunning six month sales figures bit.ly/FerrariRecord6

Could this be the answer to your used stocking problems? HPI launches smart new service to help you find the right cars for your site

PI has launched a new website with an emphasis on bringing quality used stock to dealer forecourts. The site, called iCar Trade, provides access to a variety of quality stock, sourcing vehicles from contract hire, leasing companies, rental and vehicle replacement companies from across the UK. The launch marks a commitment by HPI to support dealers and the growing customer demand for premium secondhand stock. Through HPI iCar Trade, dealers reduce their stock holding time and increase the speed of sales by providing access to vehicles for their forecourt or as virtual stock. HPI iCar Trade can be used in the showroom environment with a customer where a joint search can be carried out to find the right car for them. Cars available can be bought ‘sold as described’ or can be purchased refurbished to BVRLA Fair Wear and Tear standard. Stock is sourced from a wide range of brands focussing on vehicles from six months to five years old, with varying mileages, giving dealers access to hundreds

Speaking the right lingo Polish drivers in Southampton can now purchase their new vehicle conversing entirely in their native language. That’s because Snows Group has appointed a Polish sales executive to meet the needs of car buyers from Poland who have settled in the city. Agnieszka Zytkiewicz has taken up her post as sales executive with Snows Toyota Southampton. She said: ‘The centre is selling increasing numbers of vehicles to the Polish community and as it can be a complex process, particularly if finance is involved, it can be very difficult if English is your second language. ‘Snows Group wanted to be able to provide this service to what has become a very significant portion of their customers; we are probably seeing two or three native Polish speakers in the showroom on a weekly basis and having a Polish sales executive means everything becomes more straightforward.’

of cars from a variety of vendors. Daniel Burgess, HPI managing director, said: ‘HPI iCar Trade supports dealers by reducing stocking costs and increasing the variety of stock available. ‘With access to a greater choice of cars, dealers can enhance customer satisfaction, whether they visit the showroom in person or make an email or telephone enquiry. ‘This is an exciting development for HPI with HPI iCar Trade moving us into another new market. Our platform offers dealers a unique service, which includes logistical assistance, as well as valuable remarketing intelligence. ‘iCar Trade illustrates HPI’s ongoing investment in new products and services designed to help dealers maximise retail opportunities in an ever-changing market.’ For more information on iCar Trade contact HPI on 0845 300 8901

aquisition

HR Owen expand HR Owen has announced it has acquired the entire issued share capital of Broughtons of Cheltenham Limited. Broughtons operates three Bentley franchises, in Cheltenham, Pangbourne and Byfleet, as well as an Aston Martin franchise and an Audi aftersales operation in Cheltenham. Chief executive Andy Duncan said: ‘The new Bentley businesses will extend our position with one of our principal existing marques, whilst the arrival of Aston Martin broadens our offering and is a very welcome addition to our portfolio.’

You want to sell a second-hand car At Motors.co.uk we’re doing all we can to help you sell your cars – like reaching 1.6 million* people with your stock every month and freezing our advertising prices until 2012. And you want your to ring with enquiries. Well, with Motors.co.uk being promoted in the Daily Mail, The Mail on Sunday, Metro and over 200 regional newspapers, as well as online with Parkers, Honest John, Desperate Seller and Teletext Cars, you’re sure to get some interest. To advertise your stock, call us on 0845 265 6000, or email sales@motors.co.uk

Your search ends here. *comScore Jan 11

ND|Service Plans can help you save more than 50% of the costs over your current provider...

Customer retention and aftersales revenue are key drivers in maintaining dealership profitability.

Based on a 10 branch dealer group selling a total of 3000 plans per year External Plan Provider

ND|Service Plans offer a flexible and easy-to-use quotation and management system without high individual plan set-up fees.

120,000

To find out more, call our Digital Solutions team on 0845 658 9290 or visit www.gforces.co.uk.

100,000

GForces ND|Service Plans

Total Saving £154,800

ND|Service Plans benefits: jÒ .OÒPLANÒSET UPÒFEESÒ Ò ÒLOWERÒTRANSACTIONÒCHARGES y Advance payments are paid straight into the dealer’s bank account to improve cashflow y Choice of customer payment methods to help to sell more plans

Cost £

80,000 60,000 40,000

Savings Year 1 £40,800

Savings Year 2 £51,600

20,000 0 Year 1

y Sell service plans online 24/7 y Easy plan set-up & management

0845 658 9290

Savings Year 3 £62,400

www.gforces.co.uk

Year 2

Year 3

DASHBOARD.

Mercedes C63 AMG Black Series revealed bit.ly/C63revealed

Car Dealer launches Used Car Awards with Mike Brewer Gongs will celebrate the unsung heroes of our industry

ar Dealer and TV’s Mr Wheeler Dealer Mike Brewer are launching a unique used car awards for 2012. Aimed at celebrating the very best in the used car industry, the Wheeler Dealer Used Car Awards will be powered by Car Dealer – and will be open for dealers of all shapes and sizes To be held in December next year, the gongs will aim to find the very best in the an area of our industry not always given the chance to shine it should be. We’ll be looking for the best dealers – from car supermarkets all the way down to those of you with small sites and a static home as an office. We’ll be looking for the best used cars and the best used car schemes. Entries will open next year, but we’re currently looking for sponsors who’d like to be a part of these exciting new awards. Mike Brewer said: ‘These awards are

like nothing else in the motor trade today, and will be the highlight of the year for the used car sector. ‘I started my career as a used car dealer and know how important the used car trade is for the industry – and how often it’s overlooked in terms of importance. ‘I hope you’ll take this opportunity to be a part of the Wheeler Dealer Used Car Awards powered by Car Dealer Magazine and help raise the bar in motor trade awards!’ If you’d like to find out how you can support the awards, contact the Car Dealer team for a media pack via email (see p3) or telephone us for a chat on (023) 9252 2434.

Demand for sub-£1k cars far exceeds supply DATA from AutoTrader.co.uk reveals that demand for cars under £1k now exceeds current levels of supply. The UK’s top 10 bargain cars receive more than 30,000 daily searches on AutoTrader.co.uk, yet there are only 4,000 cars available. The Vauxhall Corsa receives more than 5,000 daily searches but there’s only 500 available.

Used sales up for Vertu but new sales see a drop Vertu has announced its group trading profitability was ahead of their budget but remains below prior year levels. For its results for the four-month period to June 30, 2011, the dealer group cites ‘the fragility of UK consumer demand in the retail sector’ and the ‘devaluation of Sterling’ as causes of pressure on new and used car markets. Vertu’s like-for-like profitability in aftersales increased and like-for-like gross margins improved from 40.1 per cent to 43.1 per cent. However, volumes of new car sales to private customers for the group declined by 6.6 per cent on a like-for-like

basis – with heavier declines at franchises directly impacted by the Japanese earthquake. New acquisitions helped Vertu’s new retail sales volumes increase by 14.7 per cent, but new car like-for-like margins fell from 7.9 per cent to 7.4 per cent in the four-month period. The decline in used car like-for-like retail volumes also continued, falling 5.8 per cent. Paul Williams, Vertu chairman, said: ‘The board remains confident that acquisitions undertaken in recent periods will continue to show an improving profitability trend.’ Shares, p79

Winn Assist

accident management

Make sure your customer care is the best it can be

here is a lot of press currently about the rights and wrongs of how people are looked after following an accident and the potential monies that exchange hands for the chance to look after these customers. I would encourage you to look at your provider of accident management and, without wanting to be controversial here, that includes if you are using the manufacturer route. I have spoken several times previously about the need to understand the complete journey your customer undertakes. Remember the aim of your brand is to deliver a full customer journey across the experience of dealing with your company, ensuring that you deliver top level customer service at all times. So when your customer phones the number provided following an accident, what actually happens? If you cannot demonstrate the possible journey outcomes then you run the risk of not being in control of your customer destiny. The impact is potential of lost parts sales, lost repair hours sold, lost opportunity to provide a replacement vehicle, lost continuity of customer care to YOUR standard. The additional revenues that are being spoken about in the press are optional to you if, and how, you decide to be paid them. What is very clear now in the press is the fact that if you don’t run your own scheme and leave the customer to go through their insurance company there is a potential for that customer to be driven, literally, away from you. You really should be working with a company that can answer your questions face to face in their offices, demonstrate quality of care and a pre-determined route for your customer. Not just turn up in your office with a proposal and expect a signature. You are the customer, so ask the questions and demand the answers. At Winns we encourage office visits, we will demonstrate your customer journey and you can speak to the people that matter. To understand the details and increased revenue opportunities of this scheme speak to the sales team on 0191 2761000.

‘When your customer phones following an accident, what actually happens?’

What is Winn Assist?

Winn Assist Automotive provides branded full accident management for your customers and a host of other services. Call 0845 217 2542. CarDealerMag.co.uk | 11

DASHBOARD.

Hoggart

point of sale

Finance options don’t have to be deal breakers

s September approaches thoughts of new cars begin to stimulate the minds of many potential buyers. Even today my wife was admiring the new Evoque and imagining waving goodbye to her ML. No doubt there are many other people similarly strategising their own upgrades. Unfortunately many of these thoughts will be clouded by the spectre of negative equity that represents a perceived barrier for many people who want a more aggressive change cycle than the original term of their finance agreement suggested. Obviously a shorter change cycle is very attractive to the dealer community so the will to accommodate such requirements is surely there. But is the knowledge of how best to exorcise the Negative Equity problem widely enough known to avoid losing sales? It is certainly our experience that many customers are resigned to negative equity and prepared to wrap up the loss into a new deal as a price worth paying. We have also found that this isn’t matched by the creativity of some dealers in providing the facility to do it. As many captives and big-name independent lenders restrict the loan to value offered on their HP products, the options might look nonexistent. We see two options to deal with the problem. Each offers different benefits but ultimately both can get a deal done that looked unlikely. Our Motorloan product considers the customers ability to pay and certainly not the LTV. This provides a viable alternative to HP and removes VT debit back concerns for dealers. This keeps the customer on one agreement and still offers a good finance commission opportunity. Our standalone Top Up loan can be used in conjunction with any other lenders HP agreement and we use it to treat any excess borrowing requirement completely seperately, thus ensuring that leakage away from volume deals is minimised without jeopardising the sale. Negative equity needn’t be the size of problem it often looks. Our products can help rescue deals but miracle workers they are not, so no Evoque landing on our drive any time soon!

‘A shorter change cycle is very attractive to the dealer.’

Who is Richard Hoggart?

Richard is managing director of DSG Financial Services. For more information on what his firm can do for you call 0844 880 0660 or visit dsgfs.com. 14 | CarDealerMag.co.uk

Volkswagen Finance raise £19k for charity bit.ly/VWraise19k

SsangYong boss tells of brand-building plans with Korando CEO has hopes of breaking into the SUV sector with stylish addition to range

sangYong Motor UK’s boss has declared the new Korando is a critical car but it’s not a make-orbreak one. Speaking exclusively to Car Dealer, director and CEO of the newly created SsangYong Motor UK Paul Williams said that while the new SUV is an important car and entering a new sector for the brand, it is not a make-or-break model. ‘It’s not make-or-break for two reasons,’ explains Williams. ‘Firstly, we have got other stuff lined up in the future. Secondly, if you were to check the financial side of the company behind SsangYong Motor UK, you would find it is an extremely profitable organisation and the brand is a substantial addition to our current portfolio. If the brand takes a long time to build, it is not an issue.’ Last month it was announced that the new business had been created from the purchase of shares in Koelliker UK – the current UK importer – and the Korando is spearheading the brand’s return to the UK market. Prices are expected to start below £17k,

so the Korando will put SsangYong into the highly competitive cross-over market. The new car joins the Rexton and Rodius in the UK model range, but Williams does admit that Rodius and Rexton will not be the new face of the company – that role is very much reserved for the new Korando. ‘The Korando has been styled by Guigaro and it is very much the future for the brand. When you see the styling of our new cars, they won’t have the eccentricities models of old had. ‘I have seen a lot of the styling executions for the future,’ adds Williams. ‘And it is fair to say that the Korando is representative of where we are going in terms of style.’

Rask steps down at Volvo PETER Rask is no longer the managing director of Volvo Cars UK, Car Dealer exclusively revealed online in July. A source told us that Rask – who became Volvo UK’s managing director in 2008 – had been ‘relieved of his position’, and Volvo UK’s sales director Nick Connor had replaced him temporarily. Our source also told us of a new hatchback Volvo coming to the UK. Called the V30, the new hatchback is designed to compete with the likes of the Volkswagen Golf and will showcase Volvo’s new ‘simple, iPad-like design strategy.’ A Volvo spokesperson said: ‘Peter has left the business completely to pursue other interests. Nick Connor is acting managing director until a permanent appointment is made. We cannot comment on a V30 coming to the UK, but what we would say is that a fivedoor hatchback is a logical progression for us in the C-segment.’

charity

Scaling the peaks Southampton-based Snows Group’s chairman Stephen Snow and board director Neil McCue will be climbing Africa’s highest mountain later this month to raise money for local radio station Wave 105’s Cash for Kids charity. The pair will be joined by 10 other individuals including Wave 105’s managing director, determined to complete the 1,934ft mountain in 10 days. ‘There’s a great buzz going around our dealerships at the thought that we, as a group, are putting something back into the community,’ said Snow.

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Around the world

New Twingo revealed ahead of Frankfurt show bit.ly/NewTwingo

michigan

CHEVROLET is trialling solar panels to charge up Volts at a dealership in Michigan and another in California. Large canopies will be erected under the firm’s Green Zone Initiative to allow dealers to charge up to 12 cars a day. Any extra power will be used to supplement the dealership’s energy usage.

Dealer news from somewhere other than here north dakota

A FORMER car dealer in Grand Forks, North Dakota, has been arrested and charged with 15 counts of theft. In his time as a car salesman, the dealer allegedly carried out fraudulent deals and five counts of felony. In one case, the dealer, known as ‘Moe’, apparently sold the same car twice illegally to two people. The total maximum penalties on the 15 counts add up to nearly 30 years in prison.

THE

bahamas

BMW is set to return to the Bahamas. The German firm will return to the region in the fourth quarter of this year. One franchise dealer will be established, and will be tasked to sell between 50 to 60 BMWs a year from the site. It marks a return to the region for BMW. Other dealers have held the franchise in the past but have been unsuccessful with it.

CREEN YOUR S AND ON RS TO L A C T S HOTTE

MME THIS SU

hong kong

A PORSCHE dealer in Hong Kong has reported they will have to expand their business after experiencing unprecedented demand for the German brand. Jebsen Motors will have to open up further dealerships to keep up with demand for Porsche cars – but the cars which the Chinese are buying are not 911s or Caymans. The Panamera saloon and Cayenne SUV are proving to be the Porsches of choice among Chinese buyers.

INDIA

ROLLS is to open two more dealerships in India as part of large expansion plans for Asian countries. The luxury car maker already has two dealers in India but wants to increase this to four due to the country being an important market. Two new showrooms will be added in the north and south of the country. China is the biggest market for Rolls-Royce and India is the second, with the latter selling 80 cars in 2010.

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dashboard. awards

Car Dealer nominated CAR Dealer and its writers have been nominated in four categories for the Headlineauto Awards 2011. The prestigious awards celebrate outstanding achievements in motoring journalism and communications. Just being nominated is a big achievement in itself. The magazine will be vying for honours in the best business publication category, with first place going to the title that delivers the most consistently high level of editorial to its readers. Last year Car Dealer was also nominated and finished in third place. James Baggott has been nominated for two awards – news writer of the year and editor of the year. The latter of which applauds editors who can best juggle the demands of publishers, readers and staff. Last year Baggott finished second in editor of the year, narrowly beaten by Car’s Phil McNamara and was placed above Autocar’s Chas Hallett. Meanwhile staff writer James Batchelor is up for rising star (business) which recognises up-and-coming motoring journalists in trade and B2B media. Batchelor will be up against four other young writers, including Car Dealer columnist Alex Goy.

my first sale

Euan Cameron

Peter Vardy’s marketing boss learnt cars come with paperwork early on

can clearly remember the first car I sold – it was a 2001 Mercedes-Benz ML 320 and I can still recall the number plate too. The customer bought the car because he ran a stationary business and needed the space to carry his goods around. It was a used car and it was three years old at the time, but the customer was proving to be difficult in agreeing to buy it. It actually came down to me jokingly offering to throw in a box of Tunnock’s tea cakes to (literally) sweeten the deal. The box of cakes was sitting on the sales manager’s desk and I said to the customer ‘I suppose you’ll be wanting me to throw in these as well’, and he replied that yes, he would buy the ML if the Tunnock’s tea cakes were thrown in! But the really interesting thing about my first sale was that I didn’t realise I needed to get insurance certificates and documents, and it was only about half an hour before the customer came in to collect the car that I found out I needed

Cameron clearly remembers selling his first Mercedes these things. It involved a lot of running around at the last minute trying to get everything sorted before the customer arrived. The customer had to wait about 10 minutes for his car as I was still in the queue at the post office, and I then had to hurry up the cashier to process the tax disc too. And then the customer wanted to pay by Switch and our card machine packed up. The day went from bad to worse, but to his credit my boss completely understood because no one had ever shown me before. Luckily though, the customer went away happy and returned for years to come to buy more cars from us.

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Used Car Expert on quest for quality dealers bit.ly/ExpertQuest

A nice problem to have Make sure you have a good, not bad, business

n many respects running a business is just dealing with a series of connected problems. The question is, do you have good problems? Or bad problems? Put another way, are you running a good business or a bad one? BT, as far as I am concerned, is the worst run business in the UK. I never complain about their prices; the UK’s fastest business broadband is staggeringly cheap. But I have to regularly complain about the service. If anyone on the board did a mystery shop to get an extra phone line they would be horrified at the time they spend on hold, in phone menus, going round in circles getting the wrong advice, going round in circles, going round and round and round. Auto Trader, however, may well be one of the best-run businesses in the UK. I never hear people say: ‘Oooh their site was down.’ I hear people say: ‘They’re the biggest and the best but my gosh don’t they charge for it.’ As a dealer, you can moan about that, or you

Follow Auto Trader’s lead not BT’s can say to yourself, ‘I want problems like that.’ So, how do you get problems like that? How can you put prices up when everyone compares prices and wants to haggle? Well, as one dealer put it to me: ‘I used to spend nothing. Then I worked it out. You have to

spend some money to grow.’ Here are some of the simple but effective things I know dealers that are doing well in used cars, despite the economy, do: 1 Send an automatic text to customers as they leave the forecourt. 2 Sell cars with a warranty included. 3 Enter for awards and accreditations. 4 Advertise on as much of the web as you can. But, one way or another, only pay for profitable ads. 5 Deliver cars to customers – it impresses the neighbours. 6 Offer live help on your website. 7 Quote third party prices (such as Used Car Expert’s) to prove your car’s value. If you want to know if you can reasonably charge more for your cars, drop me an email. There are a few things we can do that might move you away from low-quality problems to some high-quality problems.

Who is Matt Tumbridge? Publisher of UsedCarExpert.co.uk. You can contact him on mt@usedcarexpert.com or on 07974 778 554 or @usedcarexpert

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Dealer on top of the world

MARUTI Suzuki can’t be accused of keeping its feet firmly on the ground - its new outlet’s in the clouds! Its new site, situated in north-east India alongside the highest petrol station in the world, is in one of the most remote areas and at the highest altitude of any car workshop at 3,740m (12,200ft) above sea level, higher than its previous highest workshop at which was 3,505 metres.

subaru

Changes at the top

SUBARU UK has appointed a new managing director. Darren James, 41, moves from his previous role as director of parts and service. James takes over from Paul Tunnicliffe who is appointed to the newly created position of UK operations director. Tunnicliffe heads up each of the three IM Group franchises at board level, and takes responsibility for IM Group functions.

ALPHERA

Halil moves down under

ALPHERA Financial Services’ Spencer Halil is set to take on a new role in Australia. He’ll be tasked with driving growth within the BMW Group and Alphabet. Halil has been with the BMW Group since 2006. 22 | CarDealerMag.co.uk

Subaru dealers raise money for Japan bit.ly/SubaruJapan

Academy aims to unite the Hyundai family under one roof H

yundai has officially opened its new training academy in High Wycombe – and Car Dealer was there to witness it. The 17,695sq metre academy will play host to the training of all Hyundai franchised dealers across the UK, and finally brings together all previous training sites located around the country once and for all. Taking just 12 weeks from the signing of the contract to the official opening, the new academy boasts classrooms and training rooms, workshop space for technicians to train on real cars, and even a mock-up showroom has been constructed complete with a welcome desk, merchandise cabinet and cars for the training of sales executives. The facility was officially opened by the president of Hyundai Motor Europe, Chang Kyun Han. Dealers from across the UK, as well as the mayor of High Wycombe and individuals from the Korean embassy, attended the unveiling ceremony. ‘This academy brings together all training of our staff at Hyundai Motors UK and our dealers together

High Wycombe’s mayor attended the grand opening

New Buckinghamshire training facility seeks to deliver customer service excellence on one site,’ Hyundai UK’s aftersales director Graham Lightfoot told us. ‘It’s very much of the family atmosphere – everyone can understand and take part in our standards which is simply delivering excellent customer service.’ Brand identity is a key area of development for Hyundai, too. ‘We have recently won awards for our good customer service from Which? who named us as best manufacturer of 2011,’ said Tony Whitehorn, Hyundai Motor UK’s managing director. ‘But we don’t just want to deliver good customer service, we want to deliver excellent customer

‘‘

service. We hope this new training facility will do this.’ The mayor of High Wycombe attended the opening and it is this local element which Hyundai also wants to build on with the new facility. ‘The Hyundai training academy is a great thing for the local community. It not only brings in new business to the area, but we are hoping local charities and organisations will be able to get involved with the site too.’ Up to 70 delegates a day and 12,000 a year will be able to train at the facility – from dealer principals, sales managers and workshop controllers, to sales executives and workshop staff.

This academy brings together all training of our staff at Hyundai Motors UK and our dealers together on one site.

Car buyers will have ultimate say over eco Veloster AN eco version of Hyundai’s forthcoming Veloster could appear in the UK if buyers want it, says the firm’s boss. Speaking to Car Dealer, Hyundai UK’s managing director Tony Whitehorn said that the car is not only a decisive step-change for the brand’s image, but it could spawn further derivatives including an eco ‘blue’ version. ‘Veloster is a tipping point for Hyundai,’ Whitehorn told us, ‘and it is a watershed moment. The ix35 was a watershed car and so will the i40,

but the Veloster is more than that. The i-range of cars is all about volume whereas the Veloster will be about profit for our dealers.’ The sporty coupe will propel the Korean firm back into the small sports

market – a sector it has been absent from since the demise of the Coupe in 2008. However, Whitehorn also revealed that the car could also appear in different forms if the UK public wants it to. ‘I can tell you we have had those discussions about a ‘blue’ or an eco version of the Veloster because Hyundai is the type of company who think outside of the box,’ he said. ‘We will be launching the car with a 1.6-litre petrol which will sit in the middle of what we can do.’

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

A car came in for a service and we were asked to do a valuation with a view to purchase. Our sales manager looked up the book price and said we were prepared to go to £12,000 subject to checks being carried out and condition. Unfortunately due to a mistake before the vehicle could be checked another salesman sent off the V5. When we did undertake a detailed check it was clear that two tyres needed replacing, all four wheels needed a refurb and the central locking would not operate. We thus revised our offer to £11,000 which has been refused. This morning we received a letter from a solicitor stating that we had entered into a contract to purchase and demanding we pay the full £12,000. We contend that the offer was conditional and hence we should be able to withdraw. Are we correct? JM, Tewkesbury

The basic legal guidance is to detail everything you do – including all your processes involved in buying, selling or repairs – to both parties in writing. In this case it’s all about whether a contract was established. For a contract there has to be offer and acceptance and agreement on the terms from both sides. Hence your sales manager calling and advising ‘that subject to going through the paperwork and inspection we would pay £12,000’ would imply that the deal was conditional on inspection and if it was not up to scratch the price might be lower. Had the car been delivered and no paperwork moved I would be suggesting you stuck to that line.

ADVICE

Is it our fault? Q. We sold a used car to a private customer which is less than three years old and hence is still covered by the manufacturer warranty. The car seems to have serious problems which cannot be repaired and the client is seeking to bring a legal case against us. We contend that the fault is with the manufacturer – and there is evidence to support this – however we are not a main dealer. The car has always been serviced within the manufacturer’s instructions. Who is liable? The vehicle manufacturer or us? TP, Blackburn A. You are responsible in law as you retailed the vehicle to the end-consumer but manufacturers now take problems with cars they have made very seriously. Even if the car was not sold by a manufacturer-approved dealer prior to

The complication in this case is that the paper was sent off which tends to suggest agreement to a contract. The courts take the view that there must be objective evidence that the parties had each entered into a contract. But this means that it is only necessary that somebody gives the impression of offering or accepting contractual terms in the eyes of a reasonable person, not that they actually did want to form a contract. My guess is that the best we can do would be

you selling it, then provided the car had been serviced in accordance with the manufacturers’ instructions I would expect most manufacturers would acknowledge some responsibility for any failure. If you sell a car which fails within manufacturer warranty there is a very good chance we can get the manufacturer to pick up the bill. We can write to them for you.

first to agree to transfer the £11,000 (which is not in dispute) but to dispute the £1,000 on the grounds that the offer of £12,000 was subject to inspection. The big advantage is that leaves them nowhere to go on legal costs as even if it went to court it will be a small claims dispute (and their lawyers will not be interested as they cannot recover costs). We can then offer to resolve the issue of the £1,000 through mediation or to unwind the deal and that they should take the car back.

Border issues with Mercedes Q. We sold an old Mercedes to a customer which we advised emitted smoke under load at time of sale. The price was ‘clearance’ at £1,700. We made the smoke problem clear to the customer from the outset and they decided to proceed with the purchase. The problem is detailed on the receipt. About a month after purchase the purchaser contacted us and said they had fitted a new turbo (at a cost of £450) but this had not cured the problem and they were advised by the fitting garage that the car needed a new engine – which they are demanding we supply and fit free of

charge. They have issued proceedings against us in the Scottish courts (which is where the vendor lives) despite us being based, and the transaction wholly taking place, in England. We have a court date for October. What do you advise? MM, Newcastle A. Jurisdiction is usually based on the location where the sale took place so if the car was sold/bought and paid for in England then in most circumstances it would be subject to the jurisdiction of the English rather than the Scottish Courts. The governing jurisdiction

should in any event be defined in your terms and conditions which define the terms of sale. My recommendation is that subject to a detailed examination we oppose the ability of the Scottish courts to deal with the case and that the case – if there is one – should be heard in England. On the facts, if you clearly declared the defect with the car at the time of sale then this should have been factored into the price and the buying decision. On that basis the buyer purchased the vehicle on the basis of a known risk and you cannot be responsible for repairs.

Who is Lucy Bonham Carter? She is a leading commercial lawyer specialising in automotive. She heads the legal team at AutoLaw, a multi-disciplinary insurance and legal practice which specialises in providing legal assistance on motor trade-related legal issues and she provides advice to Car Dealer Club members. To get advice like this (worth £199) join Car Dealer Club for just £25 per year. Sign up at CarDealerClub.com 24 | CarDealerMag.co.uk

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

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

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

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

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

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big mike.

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

Winning cars will persuade the punter every single time

ike most people, I remember my first car well. It was a 1964 Ford Cortina and it was finished in red. On its own fairly unspectacular, an icon of bread-and-butter British motoring, albeit one with pretty ‘ban-the-bomb’ tail lights. But there was a specific reason I bought the Cortina, and even more of a reason why I had a red one. And that was my love of motorsport. For while Jim Clark was cleaning up the British Saloon Car Championship (the forerunner of British Touring Cars) in his white Lotus Cortina and John Whitmore was kicking some European ass in his red and gold one, I was in my pokey little lock-up in Quinton, Birmingham, using gold Hammerite and a set of reverserim steel wheels to turn my Cortina 1200 into something resembling Sir John’s giant killer. It never did, of course, thanks to its puny but dutiful little engine, though the addition of some racing harnesses did have what today’s youth often refer to as the ‘Vicki Butler-Henderson effect’ on my then girlfriend’s cleavage – something for a thrusting young buck to admire as we negotiated the perils of rush hour on the Hagley Road. I was led on this rather indulgent jaunt down memory lane just the other day, when a twenty-ish fella-me-lad wandered on to the lot to look at a 2005 Chevrolet Matiz I’d picked up for a song – an ex-courtesy car from my local bodyshop, it appeared to have been in the custody of people who were used to bending their motors if the front and back bumpers were anything to go by. Nonetheless, it was cheap, and nothing my old buddy Rattle-can Ritchie couldn’t put right as soon as we got a day with not much wind and some sunshine. So cheap, in fact, I could punt it out for below the going rate, and that’s how this polite young chappie found himself on my lot. Ever sold a car off the It turned out he was motorsport mad, and was a back of one of these? big fan of Vicki Butler-Henderson’s TV colleague, Mr Potato-Head, who despite having the odd tantrum here and there is clearly an exceptionally talented driver. These days, Potato drives a Chevrolet Cruze, a car which even Big Mike had never really paid much attention to before it appeared on track. As a trader, it’s quite clear why I’d never paid it much mind – a four-door saloon, built in Korea, is never the most auspicious start in life for any car, but having seen the thing on ITV4 in BTCC and on Eurosport in the World Touring Car Series (I have a separate telly in the downstairs loo!) I have to concede it’s actually quite

Big

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

pretty, and if the Chevy hire car I had in Spain the other week is anything to go by, it probably drives okay too. Certainly, my walk-on punter was of that opinion. Okay, so the only car he’d driven before that was a 15-year-old Fiat Cinquecento with knackered brakes (I know, as I stupidly took it in part-ex and only found out about the brakes afterwards), but to see him grinning from ear-to-ear while hooning round the mean streets of Halesowen on a test drive left me under no impression that he was a) clearly a motorsport fanatic and b) surprisingly talented behind the wheel. It also reminded me just how much fun you can have in small and basic cars. It’s a failing of mine, really, that my daily smoker (recently acquired Nissan Maxima excepted, as that’s my future classic!) is usually the most opulent thing on the lot with a valid tax disc, when if you only live a few miles down the road you can have a barrel of laughs driving

‘Pre-BTCC, the Honda Civic was something blue-rinsers took to bridge club.’ home in basic tin boxes every now and again… But I digress. A deal was done (I rather suspect my young punter felt a duty to buy the car, given that he’d mullered the front tyres) and Big Mike’s Motors had another happy customer. So happy, in fact, that I saw the car in Tesco’s car park the other week bedecked with BTCC Chevrolet flags and pictures of his hero on the back seat. At that age, I have to say, I preferred girls, but nevertheless it’s fascinating to see exactly what motor racing can do for a car brand. Not convinced? Pre-BTCC, the Honda Civic was something blue-rinsers took to bridge club, Seats were for people who couldn’t afford Volkswagens, and for a short while even the Toyota Carina was cool. As for other forms of motorsport, in the days before Colin McRae, Subarus were oddball estate cars and farmer’s pick-ups, and Mitsubishis were used to steal trailers by people with too much jewellery. And back in the Sixties, Big (but far younger and better looking) Mike would never have entertained a 1200cc Cortina were it not for its track success. But then it was Henry Ford himself, wasn’t it, who came up with the adage ‘Win on Sunday, sell on Monday’? Alex Goy’s view, p84

Who is Big Mike?

Well, that would be telling. What we do know is he’s had 30 years in the car trade and picked up some seriously funny tales along the way. CarDealerMag.co.uk | 27

dashboard.

Volkswagen UK appoint new managing director bit.ly/NewVWMD

Jim Wright Nissan’s new MD talks to Car Dealer about his role

Nissan’s activities. But my perception of Nissan is a brand which is far more secure in the marketplace, more recognised for doing things differently and has a more secure network. The network and what it was saying three years ago is immeasurably different to now. And the franchise for retailers is far more desirable.

What are your objectives for Nissan? We have had a linear growth path in terms of market share and my aim is to get our market share above the current figure of 4.8 per cent to above five per cent. We also need to make sure the network is in the right position to make the best of the returning market and for our new products and to take advantage of that. What are your main challenges over the next 12 months? Paul Willcox has left me a business which is really quite secure. We need to respect that but need to push forward and plan for the recovery. With Juke, Leaf and Qashqai having been great successes, have you joined at a time when that could change for the worse? No, I don’t think so. Qashqai is very secure in its position, Juke is only around six months old, and Micra has just been launched – and the UK is a strong place for Micra. There is still a great opportunity to grow the brand in terms of share

in the next 18 months to two years. Where would you like to see Nissan in five years time? Consistently above five per cent market share and it is not unreasonable to expect a six per cent market share. Has Nissan changed since you were last at the firm? Let’s not forget that in my time with Infiniti, I was completely aware of

Have you any plans for the dealer network? Paul Willcox made big changes in the network as we went through a period of restructuring. I wouldn’t say that’s finished but a lot of this has been done. There will be some changes as we seek to grow, but no wholesale changes. We will need to develop the network we have so it is prepared for growth – but at the end there will be some changes because that is only natural. Are you going to bring anything you’ve learnt from Infiniti to Nissan? Infiniti was a start-up business so the ability to treat customers in the right way differentiated us – there is an opportunity to do that in the mass market. What I will bring is my knowledge of the business from a corporate perspective. [CD]

Join us at a Kärcher Professional Roadshow near you! Throughout September, Kärcher will be touring the country with its Professional Roadshow truck. We will launch several new Kärcher products from our professional ranges and demonstrate how Kärcher can make a big difference to your business. As well as product demonstrations and giveaways, there will be a prize draw at every event, where one visitor will win a Kärcher professional product up to the list price value of £2500! For further information on how the Kärcher Roadshow can make a difference to your business, please email roadshow@karcher.co.uk, visit www.karcher.co.uk or call 01295 752 142

02/09/2011 AMEX Stadium, Brighton 06/09/2011 Madejski Stadium, Reading 12/09/2011 The Etihad Stadium, Manchester 15/09/2011 Edgbaston, Birmingham 20/09/2011 & 21/09/2011 MechanEx, Stoneleigh Park, Warwickshire 27/09/2011 Hampden Park, Glasgow CarDealerMag.co.uk | 29

FINANCE. leasing

Dealer finance on the rise THE FLA’s latest statistics show that new car leasing and PCPs were up by 41 per cent and 10 per cent respectively. In contrast, Hire Purchase was down by 31 per cent. The number of buyers choosing to get finance through a dealer reached a two-year high, with 55 per cent of new car buyers in the past year choosing dealer finance. Paul Harrison, the FLA’s head of motor finance, said: ‘Car buying behaviour is changing. Motorists do not always want to be tied into an agreement to buy. Economic conditions also mean many people are choosing shorter-term contracts.’

financing

Vauxhall’s new deal VAUXHALL has launched a new finance package that allows customers to tailor their finance to suit their budgets. All buyers have to do is choose and spec their new model, decide on a deposit from zero upwards (Vauxhall will contribute at least £500) and select any term between 24 and 60 months. Customers can then use the website’s finance calculator and adjust the slider to match the amount they want to pay. Buyers also benefit from zero per cent APR until September 30. ‘We are delighted to introduce this highly competitive finance offer,” said Vauxhall’s Peter Hope.

Top marques sales up after royal wedding causes slump

Bridford Financial Solutions sees bounce back after slowdown

he prestige car market bounced back in June after a subdued couple of months, according to Bridford Financial Solutions. After record monthly (£4.4m in March) and first quarter returns (£10.2m) at the start of the year, Bridford experienced a slow down in April and May with sales less than 50 per cent down on finance arranged for luxury cars. June saw a return to the buoyant levels expected by Bridford, with more than £3m of finance arranged for cars such as a Ferrari F40 at £425k, a Porsche Cayenne Turbo at £97k and a handful of the new Bentley Continental GTs around the £140k mark. Owner of Bridford Financial Solutions Tim Marlow said the slow down in April and May was to be expected due to a number of external

factors: ‘April saw the royal wedding and an unusually high amount of Bank Holidays clustered together which resulted in a lot of people taking time off and not buying cars. This was something we predicted and the unseasonal good weather we enjoyed also played a part. ‘High-net worth individuals make up a significant part of our clientele. Footballers for example, all tend to go away on holiday at the end of the season which made May another slower than normal month and City trading still isn’t back to where it once was so the days of spending big bonuses happens less frequently.’ Car dealers struggling to obtain some of the latest supercars is also playing a part. ‘A lot of dealers are having difficulty

‘‘

physically getting hold of the most sought-after cars and are struggling to keep up with demand as a result,’ adds Marlow. ‘We recently arranged finance for a Ferrari 458 Italia but the customer had to wait 12 months to receive it so in the interim we organised funding for a Ferrari California. ‘The demand is recognised in the prices too, with one 458 selling for £199k compared to the £173,132 list price and others we’ve financed have sold for as much as £237k. ‘This is not exclusive to Ferrari either, it’s the same with all the prestige manufacturers.’ Bridford predicts June’s success to kickstart a busy summer ahead with the launch of the second phase of its free dealer calculator including a Balanced Payment Plan to increase business to £40m in 2011.

A lot of dealers are having difficulty getting hold of the most sought after cars.

Valuing Service – Valuing You! First Response Finance is the first choice for the UK’s small to medium sized dealer market. 30 | CarDealerMag.co.uk

..in association with

DEAL FINDER

Latest finance deals on Supermini MPVs Note THE Nissan Note has been a formidable car to beat in the supermini MPV sector for a number of years – and for good reason. A practical shape covered an even more practical interior, full of innovative ideas and features, and the car is even made in Blighty at the firm’s Sunderland plant. A facelift a while ago did wonders and allowed the car to remain fresh in a burgeoning sector. Nissan currently has a good finance offer on the 1.4-litre, manual model in top N-tec spec, which features among other things rain-sensing wipers and

climate control. A deposit of £5,124 is needed which is followed by 36 monthly payments of £239 at 6.9 per cent APR. The final on-the-road price is £13,728.

monthly payments of £165. With zero per cent APR, the Kia Venga 1’s final asking price is a very modest £11,930.

Jazz THE Honda Jazz has been around for longer than both the Note and the Venga and is one of the original supermini MPVs. An all-new model was launched a few years ago, building on its predecessors tried and tested formula, and the range now even boasts a hybrid version. The finance deals Honda has available on the Jazz are broad, but perhaps one of the best all-round offers is this one – a zero per cent finance deal on the 1.4 ES manual. Customers can get their hands on this Jazz which comes loaded with features such as alloy wheels and climate control.

time is money

Reflection is important

Venga ONE of the those models which has taken a leaf out of the Note’s book is the Kia Venga. This practical supermini MPV is the sister car to the Hyundai ix20, but we feel the Kia is the more attractive version of the two. In fact it was one of the earliest cars to show off Kia’s new design direction and has brought a whole new range of buyers to the manufacturer. The Venga 1 manual is on offer for zero per cent finance, and for this customers need to put down a deposit of £5,990 to start the agreement, followed by 36

Such

A deposit of £6,775.12 starts off the agreement, followed by 48 payments of £140. The final on-the-road price for the Jazz is £13,495.

n life are you somebody that looks at what other people are doing, pick fault with them and point out how they could do things better with a feeling that everything in your world is perfect? Or, on the other hand, do you look inwards at yourself and concentrate on the things you do well but also, more importantly, the things you do not do so well and make amendments where necessary to generate a better performance both personally and professionally? While on a recent family holiday I read a line in a book which made me place the book down and spend the afternoon reflecting, on my sun lounger, with regard to what the words meant to me, my life, my relationships, my teams in work and my colleagues. The book suggested that generally people look out of their glasses at others as opposed to inwards at themselves. The question is why? Maybe it’s easier sometimes to look at other people as opposed to looking in the mirror and seeing the reality of what is actually happening in our own lives, teams, and working practices. I have a belief that everybody has key strengths and can all do some excellent things in the working environment. But we all too have faults which unless we examine and identify will not be addressed. Without this action we will continue to achieve the same result we always have. At First Response Finance we are currently ‘looking in the mirror’ with regard to our outbound telephone calls to both car dealers and customers as we appreciate the number of occasions we speak to them the first time could be better improved. What area could you look at in your business in order to better understand a situation and make improvements?

‘I have a belief that everybody has key strengths and can all do some excellent things.’

Who is Jonathan Such?

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

Tel: 0844 8730819 Web: www.frfl.co.uk CarDealerMag.co.uk | 31

FORECOURT.

£99

CARS

They can all be had for that all-important monthly headline figure, so we asked the target buyer to rate them – the editor’s mum

Hyundai i10

Price: £6,995 Engine: 1.2-litre, petrol Power: 85bhp Max speed: 105mph 0-60mph: 12s

Toyota Aygo

Price: £9,195 Engine: 1.0-litre, petrol Power: 67bhp Max speed: 98mph 0-60mph: 13.7s

32 | CarDealerMag.co.uk

Words: James Batchelor | Pictures: matt richardson

rs Baggott needs a new car. Being the editor’s mother, she knows her onions – she did, after all, have a Kia Soul. But she has a strict budget she must conform to. She will pay no more than £100 per month on finance for a small, city runabout, and the car must be practical, have seating for some grandchildren and all of their things, be fairly zippy and have some style and interesting features to keep her petrolhead-ness satisfied. But on a budget of £100? Surely not, you’re shrieking. Two crisp 50s a month is the price of a fairly decent meal out, a microwave from John

Lewis, or a budget hotel room in Derby. Take note though – with new car sales down and small runabouts seeming to be more popular than they ever have been, Mrs B is the perfect customer you should be tempting in and filling out the order forms with. That’s because, for the price of a kitchen white-good, there are a whole host of manufacturers out there with finance deals for under £100 a month. Don’t think, though, that we’re talking about some cars from the Middle East with badges on from a manufacturer you’ve never heard of. We’re talking about cars with some of the biggest names

in the industry and popular models that sit on your shiny showroom floors. We’ve brought together city cars from Fiat, Volkswagen, Toyota, Hyundai and Ford not only for Mrs Baggott’s benefit, but for dealers’ too. If you’re a franchised dealer, these are the cars that you should be pushing in your showrooms, and if you’re a used dealer these five runarounds are the cars you will be competing against to win mothers’, such as the editor’s, hearts.

Fiat Panda

Price: £6,645 Engine: 1.2-litre, petrol Power: 69bhp Max speed: 101mph 0-60mph: 13.2s

VW Fox

Price: £7,295 Engine: 1.2-litre, petrol Power: 59bhp Max speed: 95mph 0-60mph: 15.7s

Ford Ka

Price: £9,545 Engine: 1.2-litre, petrol Power: 68bhp Max speed: 99mph 0-60mph: 12.9s

CarDealerMag.co.uk | 33

FORECOURT.

Fiat Panda Price: £6,645

f all of the cars featured here, it’s the Panda that is the oldest, but you really wouldn’t know it. That simple, squared-off styling is still remarkably good looking and has aged well, and the no-nonsense approach to motoring it has feels even better these days since the advent of the new 500. In its prime, a few years ago, there was a whole host of models. From a basic eco version right up to the fiery 100HP, there was even a 4x4 Crosser model with beige plastic body panels at one point, and many designer special editions. Now, though, there are only three models. And the one in the pictures is the Panda that is available for a special, stonking price of £6,645 and, better still, for our all-important £99 a month. That will get buyers the 1.2-litre, Active version under Fiat’s I-Deal. They are required to put down a reasonable £1,439 deposit to begin the three-year agreement. That is followed by 47 monthly payments of £99 at 8.69 per cent APR. If the customer wants to keep the car, a final sum of £2,029 is needed.

34 | CarDealerMag.co.uk

The Panda interior is a bit basic; Mum loved the looks; But boot was cramped That brings the total amount payable by the customer to £8,121. With the Panda, customers are treated to three different warranties and breakdown cover – all as standard. Firstly, there’s the two-year manufacturer and three-year dealer warranty, then there’s an eight-year corrosion warranty, and the Panda’s paintwork is also covered by a three-year warranty. One year’s AA breakdown cover is also included. Customers will enjoy the mini-MPV-like highup driving position, decent levels of space and little glass panels behind the rear windows that make parking a doddle. That’s not to mention the 69bhp, 1.2-litre petrol engine which zips around the town. So, for a shade over eight grand, customers will be getting one of the most characterful and fun cars here.

the knowledge Model: Fiat Panda Price: £6,645 (tested) Length: Four years Deposit: £1,439 Cost per month: £99 APR: 8.69 Final amount: £2,029 Total amount payable: £8,121

MUM’S VERDICT The Panda felt the most spacious here and I liked its simplicity. I especially liked the MPV-like feel it had and the way it was so easy to park. But, the seats don’t split to fold down which was very awkward, and I felt the dash was a little dated.

Toyota Aygo Price: £9,195

he Toyota Aygo has long been a natural choice for customers looking for a city car – and for good reason. It’s been around for six years and its good looks and quirky interior has aged very well. In fact, the Aygo on sale today looks better than it has ever done. That’s thanks to models such as this – the Aygo Go! This particular model not only has a name which is a bit of a mouthful, but also has a set of smart alloy wheels, privacy glass, air conditioning and a leather-covered steering wheel and gear knob. The Go! also has something which features as standard on no other car here – sat-nav. It’s a clever TomTom unit, which is removable. The good news for your customers is that this particular version is available for £99 a month on a PCP. Factor in a customer saving and a dealer contribution of £555, and the onthe-road price is £9,195. A deposit of £2,791.10 is required to get the ball rolling followed by 41 monthly payments of £99 at 6.9 per cent APR. If the customer wants to keep the car, the final amount payable is £3,515 or they can hand it back to the dealer.

Aygo interior is a little cramped; Five doors are a plus; And it comes with sat nav too The total amount payable by the customer is £10,365.10 which makes the Aygo Go! the most expensive car here but easily the one with the most equipment. It’s also the smallest car here, but that only makes it more fun to drive. The low-to-the-ground stance, wheel-at-each-corner set-up, and peppy little three-pot 1.0-litre unit make the Aygo a delight around town. But, while the price is a little steep, the Aygo does come well covered. The little city car comes with Toyota’s much applauded five-year, 100,000mile warranty, and if customers order an Aygo before the end of September they will be entitled to six months free fuel courtesy of the firm too. But is it enough to tempt buyers?

the knowledge Model: Toyota Aygo Price: £9,195 (tested) Length: Three years, six months Deposit: £2,791.10 Cost per month: £99 APR: 6.9 Final amount: £3,515 Total payable: £10,365.10

MUM’s verdict I loved the looks – it looked like a brand new model. It was very nippy and fun to drive, but the gearbox was difficult and I was worried about carrying my grandchildren in it because of its size. It would have won if this version hadn’t been so expensive.

CarDealerMag.co.uk | 35

FORECOURT.

Ford Ka Price: £9,545

f all the cars here, the Ka takes the prize for being the most desirable. It’s based on the Fiat 500 – which, in turn is based on the Panda – and while it is arguable whether the Ford kinetic design works on the little Fiat platform, there’s no denying the Ka feels the most grown-up compared the other cars here. It has a level of fit and finish that is just uncommon in this segment. Amazingly, customers can experience this excellence for £99 a month on a PCP. The car featured in the pictures is the much sought after Titanium with chunky alloy wheels, climate control, a rear spoiler and lashings of chrome fixings. The car available for the sub£100 a month deal is the 68bhp, 1.2-litre Edge model that still has powered and heated door mirrors, air conditioning, height-adjustable driver’s seat, and 50:50 split rear seats. The two-year deal is the shortest – and the simplest – agreement here and kicks off with a deposit of £2,936.24 which includes an allowance of £500 from Ford. From here on in there are 24 monthly payments of £99 at 4.9

36 | CarDealerMag.co.uk

Ford Ka has a funky interior; Boot is reasonably spacious; But alloys are optional

per cent APR with a final payment of £4,185 if the customer wants to secure the car – and that’s it. The Ka’s presence here is something dealers of the other brands, or used car dealers should be a little concerned about. Why? Well, it brings with it a package that is impressive and could sway customers to plump for the Blue Oval-badged city car, buyers who will be tempted to pay a little more for a vehicle which feels a class above the others here. Factor in a Ford dealer being on virtually every high street corner and a model name which buyers have come to love and the Ka is one of the strongest contenders here.

the knowledge Model: Ford Ka Price: £9,545 (tested) Length: Two years Deposit: £2,936.24 Cost per month: £99 APR: 4.9 Final amount: £4,185 Total payable: £9,497.24

MUM’S VERDICT As soon as I got into the Ka I felt like I was getting into something with substance and different to the other vehicles. I adored the looks and thought the interior was a really exciting place to be. Three doors and a high deposit put me off though.

Volkswagen Fox Price: £7,295

f the Panda is the characterful choice, the i10 is the best all-rounder, the Aygo the most equipped and the Ka the stylish one, the Fox is certainly the sober, conservative option. Last year was the best for Fox sales with more than 9,600 sold and, to its credit, it offers all of Volkswagen’s common sense which customers have come to expect in a package that’s small but very practical. The car tested is the 59bhp, 1.2-litre Urban Fox with colour-coded bumpers, electric front windows, opening rear windows, and sliding front seats for rear access. But the Fox for £99 per month is the standard car with the same engine – VW didn’t have that available to test. While it has unpainted bumpers and the bare basics, the on-the-road price has been slashed by a heart-warming £500 (until September) to a very respectable £7,295. If customers want to go down the finance route, they will be signing up to a three-year agreement, and will need to put down a £1,894,24 deposit plus a £125 acceptance fee to get started. From then onwards the customer will be

Fox interior is a little ‘scratchy’; But badge will sway buyers; Rear seats split 50:50 forking out £99 for 34 months at 7.9 per cent APR. If customers love their Fox so much that they want to keep it, they will need to shell out £2,795 plus a £60 ‘option-to-purchase fee’. Final amount payable is £8,240.24. While the car might not be graced with some extra-special features, the Volkswagen badge on the nose is the thing that will sway customers. Most buyers will look past the plastic bumpers, three doors, four seats, scratchy dashboard plastics and the lack of air conditioning simply because the badge has kudos that the others here can only dream of. Factor in the £500 reduction and that with each new Fox three years or 30,000 miles free servicing is included, the Fox becomes a very credible, £99-per-month city car.

the knowledge Model: Volkswagen Fox Price: £7,295 (tested) Length: Three years Deposit: £1,894.24 Cost per month: £99 APR: 7.9 Final amount: £2,795 Total payable: £8,240.24

MUM’s verdict It’s quite a neat-looking little car. It was roomy and I liked the simple, square dashboard. What I liked the most, though, was the Volkswagen badge on the nose. But its four seats, lack of air-con and the general uninspiring feeling I got from it put me off.

CarDealerMag.co.uk | 37

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Unlock your potential

FEATURE.

Hyundai i10 Price: £6,995

ver since it was launched in 2007 replacing the unusually-styled Amica, the i10 has become a phenomenal success for the Korean firm. Since its scrappage scheme stardom, it has undergone a restyle and a special 99g/km eco version called the ‘Blue’ model has been added. However, the Blue is only really an entrylevel i10 Classic with a smaller 1.0-litre engine, low-resistance tyres and a rear spoiler but yet it costs £1k more. Its zero road tax and congestion charge attributes are only worth the grand price hike if customers live in London. Happily, though, Hyundai knows this so while the Blue is available for £99 a month so too is the entry-level Classic. At the time of writing, the firm has also sliced on-the-road prices by £1,200, meaning customers can get the 1.2-litre Classic for £6,995 or the eco ‘Blue’ model for £7,995 – and the firm promises competitive PCPs later this year, too. For the moment – and with the £1,200 deduction – customers can pay £99 per month for 46 months at 11.9 per cent, after a deposit of £2,961.25 and a first-month payment

The i10 gets lots of kit; The front end has recently been restyled; And rear seats split of £180 is paid. At the end of the agreement, a final payment of £269.99 is needed to secure the car, meaning the final amount payable is £8,010.78. The deal is also the same for the eco ‘Blue’ model too, just a larger deposit of £3,961.25 is asked for. With a final price of just over £8k, the i10 is the cheapest here. It’s also the most practical in terms of people-carrying abilities as it is the only car here with seating for five. However, the biggest selling point is Hyundai’s Five Year Triple Care Package. This desirable deal comes as standard and includes a five-year unlimited mileage warranty, comprehensive breakdown assistance for five years and an annual health check for five years too. [CD]

the knowledge Model: Hyundai i10 Price: £6,995 (tested) Length: Four years Deposit: £2,961.25 Cost per month: £99 APR: 11.9 Final amount: £269.99 Total amount payable: £8,010.78

MUM’s verdict This is a really good car. I liked the interior, which had a good level of specification as standard like air conditioning and an iPod input, plus the fact it had five seats. It’s perfect and such good value for money I would say the i10 is my winner here.

CarDealerMag.co.uk | 39

Hampden Park Glasgow

Etihad Stadium Manchester

Edgbaston

Birmingham

Stoneleigh Park Kenilworth

Madejski Stadium Reading

AMEX Stadium Brighton

forecourt.

themanual Equipment

Hatchback

Buyers treated to high-level of standard equipment in contrast to mean rivals’ spec levels

Bold face remains but Coke-bottle shape from saloon hacked off and replaced by hatch

INSIDE

Nicely designed interior with a nod to Camaro. Features fabric on the dash too

Chevy Cruze The Cruze saloon is attractive but too niche for Chevrolet. Now a five-door hatchback has arrived. James Batchelor reports What is it? Chevrolet has high hopes for this car. The Cruze has become the most successful Chevy around the world in recent years, but the UK arm of the business has been crying out for a fivedoor version – and this is it. While the c-segment’s top names like the Focus and Astra now cost serious money, the Cruze hatchback comes to the sector boasting low prices and decent spec.

What’s under the bonnet? UK buyers will be able to choose from a simple range of two petrols and one diesel. The 124bhp, 1.6-litre petrol is gutless and has to be pushed hard, while the 1.8 petrol is far more acceptable. However, the 2.0-litre diesel is the best, providing decent performance for not a lot of money.

What’s the spec like? They may have very American names,

but the specs are very European – and generous too. The range begins with the LS 1.6-litre petrol for £13,995 which comes with air con, followme-home lights, and electric and heated mirrors. But this is the Cruze’s trump card – the top of the range LTZ Executive Pack 2.0-litre diesel, which has heated leather seats and sat-nav, only costs £19,295.

What’s it like to drive? The Cruze’s main selling point is offering a lot of car for the money, but it’s in the handling department where the car falters. While it’s perfectly acceptable on the motorway and easy to drive in the city, show the Cruze a country road and it becomes flustered. The steering lacks any type of feel often appearing worryingly light while turning. That said, the ride is very good even on 17-inch alloys.

What do the press say? Autoblog agreed that the 2.0-litre diesel is the only engine to really go for and praised the interior look and design. Autocar also agreed adding buyers ‘will save thousands on the purchase price’. Honest John liked the value-for-money proposition but felt the looks were less distinctive than the saloon, and the quality of construction was not on par with its rivals.

What do we think of it? We’re fans of the Cruze saloon as, like the Skoda Octavia, it offers something a little unusual. The hatchback version of the Cruze has lost some of its individuality in order to become more mainstream and the looks have suffered for that. However, for the majority of retail and fleet buyers, this won’t matter and the car will score highly with them by offering good spec and good prices.

the knowledge Model: Chevrolet Cruze hatchback LTZ Exec Pack Price: £19,295 (tested), range from £13,995 Engine: 2.0-litre, diesel Power: 161bhp, 360Nm Max speed: 127mph 0-60mph: 8.1s MPG (comb’d): 50.4 Emissions: 147g/km Residual values (three years): 26 per cent

target buyers:

Retails buyers but predominately fleet markets and user-choosers.

the rivals: Ford Focus, Vauxhall Astra, Kia Cee’d

Key Selling Points:

1. Features equipment as standard which would be options on rivals’ cars. 2. Rides very well on bad, uneven surfaces and pot-holed UK roads. 3. Nicely designed interior with hard but durable plastics used throughout.

Deal Clincher Top-of-the-range Cruze is £19,295. Vauxhall Astra – on which the Cruze is based on – is £25k plus. CarDealerMag.co.uk | 41

FEATURE.

911 for 2011

Used car supply hits our challenge C

ast your mind back to the last issue and you’ll remember our 911 for 2011 update saw us post a small profit off the back of three car sales. As the former car salesman of the Car Dealer team I knew there had to be more profit out there than that, so this month I took the lead in our challenge to turn £0 into a Porsche for charity. I know every penny really does help, especially for BEN, our nominated charity, so I needed a plan. Number one was to get the right cars – then get them fixed up and sold quick. Easy. Well, at least that’s what you’d think, but as the used car dealers among you probably already know, times are tough out there at the moment. What was soon clear was that there’s a real battle raging over decent used stock – and it seems our charity challenge has strolled right into the middle of it. In just a couple of months, the contacts and dealers that were helping us had changed their tact completely. Michael Nobes, Hyundai star dealer down here on the south coast, still has £900 of BEN’s money which was left over after we chopped in our Citroen with him for the aforementioned three cars. Problem was, when we went back to spend that £900 all the trade cars we fancied were out of our price range. Nobes’ used car manager had obviously been tasked with turning over some serious margin and the Lexus LS400 and Subaru Impreza which we wanted were both asking retail money. In fact, in one case he wanted over retail cash – and remember we’re trying to turn a profit on these cars, not lose BEN money… Nobes’ ‘part exchange manager’ said his V-plate Subaru Impreza Estate was worth £2,000, arguing that he could get that kind of money for it ‘all day long’. We’d already checked Auto Trader and seen they were going for around

Story so far....

Bought for... £0 Sold for... £250

Bought for... £0 Sold for... £790.03

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

Even cars like our former Volvo are hard to come by at the moment

Former car salesman Duncan Chappell takes the reins of our 911 for 2011 bid the £1,200 mark. Even though it was a tidy, 70k WRX model, it seemed well over priced and we left it well alone. I decided to head down to my old stomping ground, Ridgeway Portsmouth, where my old boss offered me a Dodge Ram 3500 LPG conversion. I always liked Kevin Christmas’ sense of humour, but saying we could ‘double our money on it’ was one of his better one-liners. The general reason for the lack of cars for us was that dealers are holding on to stock, because they really need it – now more than ever. We spent a day visiting dealers in the blazing sun feeling like lost souls. Dejected and out of our previous luck, we headed back to the office empty-handed. The thing is, we were kind of thinking we could rock up to one of our contacts’ forecourts, have a nice coffee and mull over the brace of cheap, low-mileage part ex’s that they had to choose from. The realisation is those days are long gone. Everyone is fighting over every decent car out there that’s got even

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

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

a few hundred quid profit in them while the real snotters end up down the auction. I suppose, with the money we have, we could try and find a cheap, high mileage 996. But it Bought for... £6,000 will be in a horrid pearl green with Sold for... £8,250 baby poo interior. And that won’t sell for a profit which is, of course, the whole idea! We need at least £2k from our next step to get the kind of porker we’ve been hoping for. And we need it quick! 996’s are on the rise in Bought for... £8,110 Sold for... £8,000 price, still nowhere near the 964 or 993, but still moving in the wrong direction for our feature. Next month, hopefully we’ll have some news. We might try and squeeze some manufacturer contacts for something or butter Bought for... £200 Sold for... £375 up some dealers – if you’ve got something you think would suit us please let us know (contact details on p3)! We keep asking in the office whether any of us can imagine doing this for a Bought for... £4,000 Bought for... £2,800 living? We tip our cap to you Sold for... £4,400 Sold for... £3,000 Mr Dealer. We can’t. [CD] CarDealerMag.co.uk | 43

Diamondbrite was Highly Commended in the 2011 Car Dealer awards in the Paint Protection category

THE COMPLETE PROFESSIONALLY APPLIED CAR PAINT AND FABRIC PROTECTION SYSTEM DESIGNED TO KEEP VEHICLES IN SHOWROOM CONDITION INSIDE AND OUT – GUARANTEED FOR LIFE The only paint and fabric protection to fully protect your vehicle against the rigours of life including road salts, traffic film, acid rain, bird droppings, tree sap, fading as well as interior spillages and stains FOR LIFE. t FANT"45*$ 130'*5 0110356/*5: o &"3/ 07&3 b 1&3 7&)*$-& t 1&/&53A5*0/ "$)*&7"#-& 64*/( 063 4611035 1"$,"(&

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FEATURE.

Empowering dealers

The results T

he relationship between car manufacturer and their dealers can often be a difficult one. Dealers are at the coalface of the business, dealing with customers up close and personal every day of the week. The last thing they want is a car manufacturer they represent wading in and telling them how to do their job… But look at it from the maker’s point of view. They are the ones supplying the products, they are the ones with the vision for the brand and so they need to be able to have a say in how their cars are sold. You can see why there are altercations… We know only too well that relationships can go sour quite easily. Some of the comments the manufacturers languishing at the bottom of our survey received could never be repeated. But just like a marriage – if they work well together and listen to each others’ concerns, it can develop into a long and fruitful relationship! This year, manufacturers really took our survey seriously with many insisting their dealer networks filled it in. That resulted in some makers improving drastically on their positions in last year’s survey. Some manufacturers are not included, though, and that’s because we didn’t receive the minimum number of responses for data to be calculated. This year’s Car Dealer Power survey received more than 1,000 responses from dealers both large and small. Part one is all about the franchises and we count down the top 27 on the following pages. Part two is the motor trade suppliers’ chance to shine where you have awarded the very best with the highest accolade – your recommendation!

What’s inside? Part One

The best and worst car manufacturers to represent

P46

Third place

P52 Find out which car maker made it on to the podium this year

Second place

P53

Which maker was pipped to the post in 2011? Find out here

The Winner

P54 Which manufacturer have you voted the best to represent?

Part Two

P56 Find out which motor trade suppliers you should be doing business with

James Baggott, Editor CarDealerMag.co.uk | 45

FEATURE.

27 Chrysler OVERALL SCORE tDOWN 2

42%

Times are still tough at Chrysler and the integration with the Fiat Group was always going to be a turbulent time. But with worrying comments which claim there’s a ‘lack of interest in its dealers’ and when help is needed people just ‘shurg shoulders’, there’s clearly a lot of work still to be done.

26 Mercedes OVERALL SCORE tDOWN 21 2

46%

A dreadful result for Mercedes which collects the unfortunate title of biggest faller in our 2011 survey. With ‘average’ scores in seven categories, including finance, warranty and marketing, the brand’s dealers aren’t a happy bunch. The manufacturer’s bonus structure was singled out as particularly poor by our respondents.

25 Mitsubishi OVERALL SCORE tDOWN 2

48%

Average scores in eight categories, including marketing, brand awareness and forward planning let Japanese firm Mitsubishi down. Dealers told us the brand had ‘limited appeal’, was let down by a lack of new products and that head office just ‘wouldn’t listen’. One said: ‘They try, but at the expense of the dealer’s margin.’

24 BMW OVERALL SCORE New Entry

Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment

49%

Excellent

Average

Poor

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

Faultless

Excellent

Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment

Good

Average

Poor

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

Faultless

Excellent

Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment

Good ✔ ✔ ✔

Good

Average

Poor

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

Faultless

It’s the German firm’s first appearance in our survey and shows there’s some work to be done to keep dealers happy. ‘Faultless’ scores were recorded for its used car scheme and forward planning, but it was ‘average’ marks in finance and marketing that dragged the brand down. Dealers do like the products they sell though.

46 | CarDealerMag.co.uk

Faultless

Excellent

Good

Average ✔

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

Poor

Empowering dealers

23 Renault OVERALL SCORE tDOWN 5

52%

The French firm falls a worrying five places in this year’s survey with brand awareness, internet, new car supply and the requirements forced on dealers letting the maker down. With nine ‘good’ scores it’s not all bad news, but our respondents said accessibility of the top brass and the return on investment could do with improvement.

22 Abarth OVERALL SCORE NEW ENTRY

53%

The performance specialists didn’t make our survey last year, but a debut in the bottom half won’t please many at head office. Despite that there are positives to take from the survey. Abarth dealers rate finance, warranty, aftersales support, accessibility and the use of the web all as ‘excellent’.

21 Skoda OVERALL SCORE tDOWN 11

54%

20 Mazda

55%

Another big faller in the 2011 survey is Mazda – dropping 12 places from a place in the top 10 last year. Dealers told us that they were worried the marque ‘hasn’t changed much’ and was ‘being left behind’. Also getting up dealers noses was marketing campaigns. One said: ‘They targeted our own customers but didn’t warn us.’

Excellent

Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment

Average

Poor

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

Faultless Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment

Excellent

Good

Average

Poor

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment

Excellent

Good

Average

Poor

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

Good ✔ ✔ ✔ ✔

Faultless

Skoda dealers have delivered the manufacturer a clear message – they don’t like to wait! The firm has been struggling with new car supply with long order times annoying customers and dealers. With a ‘poor’ score in this category and in return on investment, Skoda has been dragged down the table.

OVERALL SCORE tDOWN 12

Faultless

Excellent

Good

Average

Poor

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ CarDealerMag.co.uk | 47

FEATURE.

19 Toyota OVERALL SCORE tDOWN 16

Faultless

56%

A drop from a top three position to a woeful 19th isn’t a good sign for the Japanese giant. It was ‘average’ scores for used cars, forward planning, manufacturer requirements, bonuses and return on investment which saw the maker plummet. There was some good news – both warranties and aftersales support were rated as ‘excellent’.

Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment

18 Peugeot

60%

Leapfrogging its sister firm in this year’s survey, Citroen’s faultless scores in marketing, used cars and the internet were impressive. The manufacturer really does excel online, winning two gongs in our Ewards in 2010 for its websites. Its lowest score was a ‘good’ in the requirements dictated to dealers by the manufacturers.

16 Ford

✔ ✔ ✔ ✔ ✔

OVERALL SCORE NON MOVER

With a host of new products hitting its dealer showrooms in the past 12 months – including the vital new Focus – it’s no surprise new and used cars are given ‘excellent’ ratings by dealers. The Blue Oval notched up nine ‘good’ scores, but it was forward planning and bonuses which its network felt still needed improving.

48 | CarDealerMag.co.uk

Good

Average

Poor

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

Excellent

Good

Average

Poor

Average

Poor

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

Faultless

61%

Excellent ✔

Faultless

Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment

Poor

✔ ✔ ✔ ✔ ✔

57%

OVERALL SCORE tDOWN 2

Average

✔

Faultless

Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment

Good

✔ ✔

Finance offers Warranty Aftersales support Marketing OVERALL SCORE Brand awareness tDOWN 4 Accessibility Despite dropping four places, Peugeot received Internet some positive comments from respondents. New car supply These included praise for the maker’s PCP deals Used cars and the fact there was ‘lots of support available Forward planning when needed’. The maker posted excellent scores Requirements made on you in four categories, but ‘poor’ return on investment Bonus structure and four ‘average’ marks dragged it down. Return on investment

17 Citroen

Excellent

Good ✔ ✔ ✔ ✔ ✔ ✔ ✔

✔ ✔ ✔ ✔ ✔ ✔

Empowering dealers

15 Volvo OVERALL SCORE tDOWN 8

Faultless

62%

Volvo dealers were incredibly vocal in this year’s survey giving us the most feedback of any of the manufacturers. So why has the firm dropped eight places? Well, planning and new car supply let it down and a few dealers believed marketing needs to be more ‘consistent and frequent’. One area singled out for praise was accessibility.

14 Lexus OVERALL SCORE tDOWN 5

Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment

With the CT200 h arriving in dealers this year it’s no surprise that new car supply has been highlighted as ‘excellent’. Aftersales support also received an ‘excellent’ rating with the manufacturer notching up 10 ‘good’ scores. The only let down for dealers was the Japanese marque’s bonus structure.

✔ ✔ ✔ ✔ ✔ ✔

65%

For the second year running, Hyundai narrowly fails to crack the top 10. That being said, 12th place is still impressive and its dealers rate the maker as ‘excellent’ in five categories. Dealers told us they loved the five-year warranty, and the support they receive, but new car supply was slated as many dealers have had issues with ix35.

Good

Average

Poor

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

Excellent

Good

Average

Poor

✔ ✔

64%

OVERALL SCORE tDOWN 1

Excellent

✔ ✔

Faultless

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

Poor

✔

Finance offers Warranty Aftersales support OVERALL SCORE Marketing Brand awareness sUP 13 Accessibility One of the success stories of 2011, Alfa Romeo Internet has made a dramatic leap up the table. It proves New car supply the maker listened to its network’s concerns in Used cars 2010 and acted on them. Supply of new and used Forward planning cars, aftersales and forward planning were all Requirements made on you highlighted as ‘excellent’ while the maker picked Bonus structure up ‘good’ scores in seven other areas. Return on investment

12 Hyundai

Average

✔

Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment

13 Alfa Romeo

Good ✔ ✔ ✔ ✔ ✔

Faultless

63%

Excellent

Good

Average

Poor

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ CarDealerMag.co.uk | 49

FEATURE.

11 Fiat OVERALL SCORE sUP 16

Faultless

66%

Our second most-improved manufacturer, Fiat not only hauled itself off the bottom of last year’s survey but ever-so-nearly sealed itself a place in the top 10. With ‘excellent’ scores in four categories and ‘good’ in the rest, it’s clear the manufacturer has addressed the problems experienced last year.

10 Honda

Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment

OVERALL SCORE sUP 11

72%

Another big climber, Vauxhall has improved in a number of key areas. Only supply of new cars and return on investment let the maker down with ‘average’ ratings, but 10 ‘excellent’ scores saw the manufacturer seal its place in the top 10. The new 10-year warranty was highlighted by respondents for its ‘innovation’.

8 VW OVERALL SCORE sUP 13

An impressive rise of 13 places for VW and no less than nine ‘excellent’ grades certainly helped. Dealers told us they loved the in-house financial services and used cars with only the supply of new cars letting the side down, scoring the marque its only ‘average’. Forward planning and maker requirements have improved drastically.

50 | CarDealerMag.co.uk

Average

Poor

✔ ✔ ✔ ✔ ✔ ✔

Excellent

Good

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment

Excellent

Good

Average

Poor

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

Faultless

73%

Poor

✔

Faultless

Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment

Average

✔ ✔ ✔ ✔ ✔

71%

9 Vauxhall

Good

✔

Faultless

Finance offers Warranty Aftersales support Marketing OVERALL SCORE Brand awareness sUP 14 Accessibility Another maker that’s quite clearly listened Internet to dealers’ concerns in last year’s survey and New car supply addressed them. Its used car scheme was singled Used cars out as ‘faultless’ while it scored ‘excellent’ ratings Forward planning in seven of the other categories including forward Requirements made on you planning, new car supply and bonuses – all of Bonus structure which were slated as ‘poor’ in last year’s survey. Return on investment

Excellent

Good

Average

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

Poor

Empowering dealers

7 Suzuki OVERALL SCORE sUP 15

Faultless

74%

A meteoric rise for a Japanese manufacturer that was scraping the bottom of our survey in 2010. Forward planning, bonuses and dealers’ perceived return on their investment have all improved from ‘average’ to ‘excellent’ – something the marque can be really proud of. Overall, it scored nine ‘excellent’ ratings.

6 Audi OVERALL SCORE sUP 7

80%

Aston Martin

OVERALL SCORE NEW ENTRY

83%

This premium marque seals a premium place in our table. The manufacturer notched up an impressive set of results with ‘faultless’ scores in six categories. These included new car supply and used cars. Finance and warranties could do with improvement though, both of which only received ‘average ratings’.

4 Land Rover

Poor

Good

Average

Poor

Good

Average

Poor

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

Excellent ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

Faultless

Finance offers Warranty Aftersales support OVERALL SCORE Marketing Brand awareness NEW ENTRY Accessibility Improved residual values, excellent service from Internet head office and an exciting new car in the Evoque New car supply has got Land Rover dealers smiling. The used Used cars car scheme, forward planning and return on Forward planning investment were all said to be ‘faultless’, while Requirements made on you the maker scored ‘excellent’ ratings in nine other Bonus structure categories. Not bad for a new entrant! Return on investment

Average

✔

Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment

Good ✔ ✔

Faultless

The message from Audi dealers couldn’t be clearer – the manufacturer is doing an excellent job. Every one of the categories received an ‘excellent’ rating, which is not to be sniffed at. Dealers told us they love selling the products and new exciting RS models have certainly helped bring new buyers into showrooms.

Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment

Excellent

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

Faultless

Excellent

Good

Average

Poor

✔ ✔ ✔ ✔ ✔ ✔ ✔

84%

✔ ✔ ✔ ✔ ✔ ✔ CarDealerMag.co.uk | 51

FEATURE.

Kia ‘Excellent scores were notched up in the remaining categories with stock levels and bonus structure both improving on last year.’

aking third place on the podium is Kia, falling one place from last year. Despite the drop the manufacturer still has a lot to be proud of – it’s quite obvious from the plentiful responses we received that its dealer network is happy. Understandably, the firm’s seven-year warranty gets the maker a ‘faultless’ score in that category along with another in accessibility. Dealers told us they can always get hold of the top brass and they actually listen to what they’ve got to say. Excellent scores were notched up in the remaining categories with stock levels and bonus structure both improving on last year. Respondents to our survey told us they think Kia are ‘great people’ to work with, that they offer ‘fair trading terms’ and the overriding sentiment was that dealers hope the forward momentum continues long into the future. There were concerns among some respondents that waiting lists were increasing though, and better supply of late used cars would be appreciated by the network.

52 | CarDealerMag.co.uk

OVERALL SCORE tDOWN 1 Faultless Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment

Excellent ✔

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

Good

86%

Average

Poor

Empowering dealers

Nissan

2 I

t was an incredibly close call between Nissan and our winner this year – but unfortunately for the Japanese marque it was edged out of first place. That’s not to say the network is unhappy. With a host of innovative and exciting new products that are carving new niches for the maker, its dealers are incredibly excited about the future.

OVERALL SCORE tDOWN 1 Market share for the brand is improving all the time and dealer margins are following. Respondents loved the used car scheme, which has recently been revamped, the firm’s forward planning, bonus scheme and requirements needed by the manufacturer – all of which received ‘faultless’ scores. ‘Excellent’ marks were notched up in the

89%

remaining nine categories in the survey. Respondents sung the praises of the electric Leaf and branded it a ‘game changer’ for the network, while they loved the maker’s finance deals. However, with recent problems with supply there’s a need for the maker to tackle waiting lists so as not to upset the customers – and its network.

Car of the Year Faultless Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment

Excellent ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

✔ ✔ ✔ ✔ ✔

Good

Average

Poor

Winner: Nissan Juke We asked dealers to put their prejudices to one side and tell us which car they felt deserved the title of Car of the Year. Votes in this category were plentiful, but there was one manufacturer that secured not one, but two places in the roll of honour, showing just how far it has come. Not only has it been the creator of new segments, but it has pioneered new technology. Its Leaf electric car secured second place in our survey, but you voted the funky Juke as your Car of the Year. In third place was the Kia Sportage.

CarDealerMag.co.uk | 53

FEATURE.

Seat

Faultless

✔

Finance offers Warranty offers Aftersales support Supply of cars Forward planning Stock levels Requirements made on you Bonus structure Return on investment

54 | CarDealerMag.co.uk

Excellent

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

Good

Average

Empowering dealers

Excellent

Good

Average

Poor

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

Poor

et’s look at the cold hard facts: Not only did Seat win this year’s Car Dealer Power survey to be awarded the best manufacturer to represent title, but it did so in style as the most-improved maker too! That really is something to be proud of. A lowly 19th last year, the Spanish firm has clearly listened to concerns from its dealer network and tackled problem areas. Stock levels, bonuses and return on investment were all cited as problem areas in 2010 – but now all three receive either ‘faultless’ or ‘excellent’ ratings. Overall Seat scores eight ‘excellent’ ratings where last year no area achieved higher than a ‘good’. Feedback from the network in our survey was plentiful. Of particular note was the maker’s VAT free offer at the start of the year at a time the VAT rate was rising. This pulled in punters to showrooms and put a smile on

OVERALL SCORE

90% sUP 18

dealers’ faces. Marketing in print and on the radio was cited as impressive, but dealers did want more TV advertising. The Ecomotive range was another factor in the marque’s success, said dealers, as was the ability to talk to senior personnel at head office easily. Seat’s success in Car Dealer Power really is to be applauded - not just for being top of the pile, but because they listened to dealers’ concerns in 2010 and fixed the problems. Our congratulations go to the team.

CarDealerMag.co.uk | 55

FEATURE.

The SUPPLIERS N

ow it’s the motor trade suppliers’ chance to shine. You couldn’t run your business without them and many not only make your lives easier but make you more money too!

We asked Car Dealer Power respondents to let us know which companies they use in respective categories and how they rated them. But being the biggest company with the most clients didn’t grant them guaranteed wins. We weighted the results so that even the smaller companies had a chance to shine – it was all about the service they gave to you that saw our winners rise to the top. In each category we’ve awarded an overall winner and two highly commended places. Even the highly commended places were fiercely fought for and were stunning achievements for the firms placed there.

Above: The view from the top of the Spinnaker Tower wowed guests at our Car Dealer Power awards evening. Left: Wheeler Dealer star Mike Brewer congratulated winners

In total, more than 250 companies were mentioned in our survey but it was only those that YOU thought were the very best that were invited to our awards night. So, settle back and relax and find out if the firms you use were rated as the very best in our Car Dealer Power survey 2011.

2011 AWARDS

Empowering dealers

Winner Highly Commended Highly Commended

Warranties Car Care Plan WMS Group RAC Warranties

Warranties play a crucial role in helping dealers increase their bottom line and can be excellent profit centres if sold correctly. Respondents told us a good warranty supplier was one that supports them – and one that offers real help and advice on how best to sell cover to customers. You said our winning warranty company deserves the title for a number of reasons, but most common among the responses was the knowledge the team behind its products has. You said not only did the warranties offer outstanding coverage, but the back-end systems were simple to use and you always received excellent customer service. For the second year running, our champion is Car Care Plan! Our highly commended winners were both praised for offering ‘excellent support’ and were ‘always willing to come out and help when needed’. The highly commended gongs go to WMS Group and RAC Warranties. 56 | CarDealerMag.co.uk

Top: Car Care Plan’s Andrew Jackson, left. Above: Ian Cooper, left, from RAC Warranties and WMS Group’s Eric Stone

Empowering dealers

Winner Highly Commended Highly Commended

Digital Specialists

GForces DSG UK Websites

We constantly extol the virtues of the web. It’s revolutionising the way you do business and the firms that can help guide you along the way play a crucial role in that. Our Digital Specialists award is for companies that design websites, help manage them and provide online software to make your lives easier. Our winner has become a force to be reckoned with in the automotive digital arena. You told us you love their can-do attitude, transparent pricing and professional service. Winner of countless Ewards for its dealer clients, and last year’s winner in this very category, GForces secures the win for 2011. Our highly commended winners received impressive plaudits from our respondents – but it was the support they offered partners that saw them both rise to the top. DSG and Starkwood Media Group’s UK Websites secure highly commended places.

Top: GForces’ Jamie Dixon collects his award. Above: Richard Hoggart, left, from DSG picks up a Highly Commended gong

Empowering dealers

2011 AWARDS

Empowering dealers

Winner Highly Commended Highly Commended

Online Advertising Motors.co.uk Vcars.co.uk Motoring.co.uk

YOU told us you’re moving away from spending your advertising budget with the local newspaper and are instead ploughing more cash into online adverts. And with 90 per cent of all buyers admitting to starting their search for a new car online, it certainly makes sense. But it’s very easy to spend a lot of money and see very few results. Our winner, though, has consistently impressed its partners with its support, offers and ability to achieve results for your advertising spend. Respondents said they liked the site’s layout and the fact it combines off-line advertising into packages in their local areas. The winner for 2011 is Motors.co.uk. Our highly commended-placed firms secured their awards because they delivered quality leads to their dealer partners. With a tough market leader both have fought hard to gain a share of dealers’ business with innovative ideas. Motoring. co.uk and Vcars picked up highly commended places.

Top: Phill Jones and Ian Webber from Motors.co.uk Above: Michael Wenn from VCars.co.uk picks up his award

2011 AWARDS Empowering dealers

Winner Highly Commended Highly Commended

Lubricants

Selling top-up packs of oil is a great way for dealers to add a healthy chunk of cash to their bottom line. Offering a litre bottle of oil to keep in the boot of customers’ cars can make a real difference to aftersales departments’ performance, but they need your help. A good lubricant company provides excellent point-of-sale material, displays and literature that explains the benefits of using their brand of liquid gold over their competitors. Our winner, who was praised by our respondents as providing ‘first-rate products and service’, is Mobil 1. Our two highly commended winners were both said to offer their dealer partners a service to be proud of and were praised for their ‘competitive pricing’ and ‘excellent service’. The gongs went to Castrol and Total.

Rebecca Gander and Vyas Rakesh from Mobil 1 collect their awards from Car Dealer editor James Baggott, right, and James Batchelor

Top: DSG’s Mark Gow picks up the winners trophy. Above: Carlyle Finance’s Debbie Mckay and Alphera pick up their awards

2011 AWARDS

Empowering dealers

Winner Highly Commended Highly Commended

Mobil 1 Castrol Total

DSG Alphera Carlyle

No one would deny the recession hit our industry hard – and nowhere was it more prevalent than in the world of finance. As high street banks clammed up and refused to offer consumers loans, it was up to finance houses to ensure dealers could still offer customers competitive finance. Our winner has worked hard to mark itself out as an innovative player in the finance field. Dealers love their online system which they said gave them back control of their customers and they praised the firm’s clever web-based quoting software. Our winner for 2011 is DSG Financial Services. Following close behind in our highly commended spots were two firms praised by our respondents for their flexibility, availability and speed at turning around deals. Alphera Financial Services and Carlyle Finance picked up the gongs.

2011 AWARDS Empowering dealers

Finance

Recruitment Mirec JGA Connect HR

Many dealers turn to the expertise of recruitment companies to help them find the right members of staff. Their ability to track down, sort and analyse applicants’ credentials saves a huge amount of time and effort. Finding a good company can be tough though. Many dealers told us they’d had their fingers burnt with over-promises Motor Industry and poor-performing recruitment firms. But our winner Recruitment’s Richard wasn’t one of those! Gosling picks up his winner’s trophy This company specialises in providing the ‘low volume, high quality market’ and our respondents clearly thought they deliver the goods. One said they offer a ‘superb service’ and are ‘extremely professional’. Motor Industry Recruitment picked up the winners’ trophy for 2011. In the highly commended spots were two firms that dealers praised for ‘well-known brands’ and an ability to deliver the right results. The awards went to JGA and Connect HR. CarDealerMag.co.uk | 57

FEATURE. 2011 AWARDS

Empowering dealers

Winner Highly Commended Highly Commended

Provenance Checks Experian HPI AA Car Data Check

Our Car Dealer Club lawyers receive more questions about hidden history and outstanding finance than any other. Knowing a car hasn’t got any nasty skeletons in its closet is vital when you’re buying and selling so many, so often – which is why provenance checks are key. The provenance check market is dominated by only a few firms, but that doesn’t mean they can get away with second-rate service. Our winner is a dominant force that works hard on ensuring its dealers are well looked after and that they get the right results every time. Our respondents said above all else our winner ‘cared’ about their dealers and that was clear in our results. This year’s Car Dealer Power provenance check winner is Experian. Our highly commended winners were both praised for their ‘easy-to-use service’ and ‘fast results’. HPI and AA Car Data Check both picked up the gongs.

Mark Turnbull from Experian collects his winners’ trophy

2011 AWARDS Empowering dealers

Winner Highly Commended Highly Commended

Remarketing BCA Aston Barclay Manheim

There are few things that shout motor trade louder than a buzzing car auction hall. But the advent of the internet is changing the way many of you buy from auction with more and more choosing to do it from the comfort of your own offices – especially when the temperatures tumble over the winter months! But what makes a good remarketing company? Well, you told us you wanted the buying and selling process to be clear, a dedicated liaison at the firm and above all a first-class overall service. Our winner received heaps of praise from respondents including ‘they are good at selling difficult to shift cars’ and one of you saying: ‘The service is excellent, we have a great rapport with them and the website is top notch.’ Our Remarketing winner for 2011 is BCA. Our highly commended winners were praised for their efficiency and honesty. Manheim Remarketing and Aston Barclay both went home with awards. 58 | CarDealerMag.co.uk

Top: Tim Naylor, from BCA, collects the firm’s winners’ trophy. Above: Alan Henson, centre, from Aston Barclay and Manheim’s Alan Cureton, left

CAP Glass’s Guide Experian

Buying cars at the wrong price or valuing a part-exchange incorrectly is a surefire way to lose money. With the advent of online advertising portals, seeing what other dealers have priced the same car at is easy, but still the importance of the expert knowledge behind the valuation guides is key. Most of the big names are now offering online valuation software so dealers can access the right prices wherever they are, but the demise of the ‘trade bibles’ is still some way off yet. Our winner was praised for its analysis and commentary, its clear and accurate data and for ‘making its customers feel valued’. CAP is our Valuations winner for 2011. Our highly commended winners were praised for their ‘clarity of data’ and ‘ease of use’ with many respondents praising the move to online valuations. Glass’s Guide and Experian picked up the gongs.

Top: CAP’s Chris Crow collects Car Dealer Power trophy. Above: Experian’s Mark Turnbull gets his firm’s second award of the night

2011 AWARDS

Empowering dealers

Valuations

Empowering dealers

Winner Highly Commended Highly Commended

Lead Generation Autotrade-mail Auto Trader Manheim

WHEN deals are declining you need to keep sales flowing – and that’s where lead generation comes into play. Sweeping databases for old leads, working out when buyers are likely to want to change and prospecting properly are vital skills to have when new car registrations are on the decline. This category had a wide range of nominations from all different areas of the industry, but our winner is a company that specialises in putting buyers in front of sellers in a unique trade environment. It can boast of nearly 5,000 subscribers, of 1,000 cars a day offered for sale and 35 per cent of the UK franchise network as its customers. Our winner for the second year running is Autotrade-mail. Our two highly commended winners provide solid leads and an excellent service to their dealers, according to our respondents. The awards went to Auto Trader and Manheim.

Top: Laura Cannon, from Autotrade-mail, and James Batchelor. Above: Auto Trader’s Fiona Coles and Manheim collect their awards

Empowering dealers

2011 AWARDS

Empowering dealers

Winner Highly Commended Highly Commended

Top: Manheim Retail Services collect their gong. Above: Neville Briggs from Pinewood picks up his award

DMS & Technology Manheim Pinewood ADP

Every month we report on another new innovation in the technology world for car dealers. The pace of advances that aim to help make dealers’ lives easier is great, but what do dealers want? Well, our respondents said any new technology, above all else, needs to make their job easier. Our winner was praised for its excellent support and clever technology that you believed ‘helped make more money’. Not only does it capture and record telephone calls, but it has been proven to help increase test drives and, crucially, increase sales. The winner for 2011 is Manheim Retail Services. Our highly commended winners both produce suites of software that allow dealers to keep a close eye on their businesses. They were praised for their clever features such as SMS text messaging, remote access and smart designs. Pinewood and ADP both took home gongs.

2011 AWARDS Empowering dealers

Winner Highly Commended Highly Commended

Top: WMS’ Eric Stone collects the company’s second award of the night. Above: Tesco Cars’ Douglas Rotberg

Innovation of the Year

Top: Supagard’s Laurence McMorrow collects his firm’s Car Dealer Power gong. Above: Diamondbrite’s Neil Simmonds

2011 AWARDS

Empowering dealers

WMS Safe & Sound Winner Tesco Cars Highly Commended Codeweavers Highly Commended

We asked dealers to name the one company, product or service they thought had truly blown the competition away – and the entries were plentiful. Our winner is a company that’s rapidly becoming a dominant force in the motor trade supplier world. With a passionate team behind the ideas, they’ve come up with a truly innovative scheme in a part of our industry that innovation doesn’t always shine on. The scheme recognises the ‘best of the best’ of the UK’s used car dealerships and helps them provide a truly exceptional service to their customers. The winner of our Innovation of the Year award is WMS for Safe and Sound! Highly commended awards went to Tesco Cars for its approach to selling cars in a completely different way that puts consumers in the driving seat. And Codeweavers’ suite of software helped it secure a gong too.

Supagard Diamondbrite Autoglym Lifeshine

If there’s one product that you love to shift more than cars, it’s these and that’s in no small part down to the commissions on offer. Customers like the fact their cars are protected from the elements and the dealer principals are smiling all the way to the bank. This category was one of the most closely fought of all, but our winner secured the gong with a raft of feedback praising their ‘excellent service’, ‘top quality product’ and the fact the kits simply ‘sell so well’. Supagard is the proud winner of the Paint Protection category. Our two highly commended winners impressed you with their decent return on investment and the fact the firms’ teams were willing to travel to explain the benefits. The awards went to Autoglym Lifeshine and Diamondbrite.

2011 AWARDS

Empowering dealers

Paint Protection

Special Achievement Douglas Stafford Netcars Autosonshow

For the Special Achievement award we asked you to name the company that has achieved something outstanding this year. It could have been a service, a product, an initiative – we really left it open-ended and in the hands of you. Much like the Innovation category, this one received a whole raft of different entries but our winner is a firm that has been tirelessly working away at helping dealers better their business for 21 years. Behind the scenes, this company has dedicated its work to making showrooms more money – and the good news is their services have dramatic affects. The winner of our Special Achievement Award is Douglas Stafford! Netcars picked up a highly commended award for its pay-on-results charging policy, no contracts and a cracking design. And Autosonshow also received a gong for its rich and easy to implement video software. [CD]

Top: Ben Sargeant from Douglas Stafford. Middle: Netcars’ Reg Rix Above: Autosonshow’s Rachel Price

CarDealerMag.co.uk | 59

focus on.

guide to the sales process

Welcome T

he best car dealerships realise that selling a car is not just about persuading the customer to sign on the dotted line. In fact, signing on the dotted line is probably one of the smallest moments in the selling process. That’s because the actual car sale is part of a broad journey which involves a number of gradual stages. Each stage is a process with one following on from the other. Importantly, though, these stages will not only make your customers feel happier in the knowledge that you are taking their car purchase seriously, but it’ll make you more money along the way. There are opportunities to be had before the customer has even walked through the door with

online advertising and lead generation, when the customer wants peace of mind with a warranty, when the buyer wants to pay for the car and when they want to protect it from the weather. There’s even a chance to be had in training, too. Keeping your sales executives on the ball could make you extra cash without you even knowing it. In the following guide, Car Dealer has spoken to a selection of companies who are all experts in their profession, ready and waiting to help you out in the sales process. This is what they have to say.

James Batchelor, staff writer

Website design & lead generation

Scientific fishing W: blueskyinteractive.co.uk T: 08451 255 855 long-term support to help dealers have a strategic marketing digital offering – and crucially converting those website visitors into leads. ‘There are a number of different things we can do for dealers,’ explains Hilton. ‘One of these is to do with their web pages. If a dealer is running pay-per-click, for example, we can improve the quality of the page, and rearrange the page in a way called “conversion science”. This means more customers will enquire, and then we can look at the people coming into the site.’ For example, if a dealer was spending a lot of money on getting 100,000 people to their site, it may be that only 10 per cent will convert so dealers could save a lot of money by cutting out the 90 per cent that do not convert. This is just one example of how Bluesky Interactive can help dealers in the sales process. Hilton said he’d be delighted to talk to any dealers to show them what else they can do.

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If a dealer is running pay-per-click, for example, we can improve the quality of the page, and rearrange the page in a way called conversion science to make more enquiries.

‘‘

ealers have been battered with advice to get themselves online with their own dealership websites. While that is fine, once a dealer has got a website and it is attracting visitors, the next challenge is converting those visitors into leads. ‘It’s about results and not wasting them,’ explains Tony Hilton, Bluesky Interactive’s marketing director. ‘Everything that comes to dealers’ websites has a cost attached to it in one way or another. ‘You might say its free traffic because someone has tapped the dealer’s name into a search engine, but a dealer would have, in one way, spent money with them off-line. ‘We’re very much focused on the results side of things and how dealers can make the most for what they are spending,’ adds Hilton. Bluesky Interactive was set-up in 2002 and is a full-service digital agency working solely in the automotive industry. They can help dealers in a variety of ways and are committed to providing

CarDealerMag.co.uk | 61

Present your stock the way consumers want to ﬁnd it. At Carmony.co.uk, we understand consumers are looking for cars to suit their individual needs. Our unique lifestyle search provides a helping hand to find their ideal match, offering an improved online advertising channel for your quality Approved stock. At Carmony.co.uk we do things differently because: • We only list Approved Cars • We focus on your cars only • We have strong trackable calls to action • We provide monthly performance reports And our prices aren’t barking mad either! To find out why over 70% of franchised dealers are already advertising their cars on Carmony.co.uk and to see what we can do for you... Call us now on

01625 856000

or simply email: sales@carmony.co.uk

ONE OF THE UK’s FASTEST GROWING CAR WEBSITES

focus on.

guide to the sales process online advertising

Power of online ads W: manheimretailservices.co.uk T: 01625 300304 approved car websites. ‘We have taken a slightly different view from some sites,’ says Packham. ‘We’re looking to have an intelligent and considered way in generating enquiries. In the same way as placing the right stock in the right place works, Carmony is not about saying to a dealer we will generate you more enquiries than anyone else. What we’ll do is we will make sure we generate, through effective and considered use of advertising and marketing spend, good quality enquiries which will have a better chance of conversion. ‘Fundamentally, that is the most important

thing. It is the return-on-sale which has to be fundamentally important to a dealer in any form of advertising.’ Essentially, Carmony is about matching car buyers to relevant stock. With features such as a lifestyle search, Carmony takes a consumer that is looking for a car and who wants to buy a car from a franchised dealer’s used car programme, to find the most relevant cars for them. ‘We want to demonstrate to our dealers that they might have had a lower number of enquiries compared to other sites, but the quality of those enquiries is much better,’ adds Packham.

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We will make sure we generate, through effective and considered use of advertising spend, good quality enquiries.

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t is a common piece of advice that dealers need to be proactive in showing off their business online, but a better piece of advice is that dealers need to get their stock advertised on the web too. ‘From an online advertising perspective, it is beyond vital that dealers should be using the web because it markets their cars in a far more effective way,’ explains Manheim Retail Services sales director Neil Packham. ‘If you compare online advertising with more of the traditional forms of advertising offline, part of the challenge you have got with offline is that it is immediately in the past. ‘Online is always up-to-date and relevant, but also one of the challenges you have got offline is how do you make the relevant and exciting points of interest come through to the customer? ‘With online it can be through imagery, video and describing the car as it actually is. Online advertising allows dealers to do this in a far more compelling way. The other thing with online is that you are able to shout about your products and services all at the time.’ Packham is not blind to reality, though. ‘I wouldn’t say that it is the only form of advertising a dealer needs to do because he needs a mix, but it needs to form a significant part because the benefits that can come about are far greater than more traditional forms.’ There are a number of ways Manheim can help dealers with online advertising. It goes from something as relatively simplistic as building a website for a small independent, creating advanced used car locators, right up to building sites for large dealer group websites such as Sytner. Manheim Retail Services is a dab hand at social media too. They can provide dealers with all they need to navigate Facebook applications and search engines. In fact, the firm can do pretty much anything to enable dealers to be more effective with an online strategy. ‘We can also help dealers identify what their online marketing strategy is and provide the best solution for their needs,’ explains Packham. ‘For example, there is little point in having a great online advertising campaign if a dealer selling niche products has a strategy that is far more volume orientated.’ Manheim can not only help you build the perfect online solution, but they can provide an ideal way to advertise your stock separate from your site too. Called Carmony, it’s one of the UK’s leading

CarDealerMag.co.uk | 63

HELPIN SALES ANG SERVICE P D EOPLE TURN MO ENQUIRIE RE OPPORTUS INTO NITIES

A more REWARDING experience Your customers’ experiences cement success for you and your team. Martec provide progressive and impactful solutions to help you give much more rewarding customer experiences. Our proven solutions cover all 3 enquiry channels 1 The Web – converting web enquiries into sales 2 The Telephone – appointing more enquiries into sales 3 The Showroom – steering more showroom traffic into orders

Regardless of the communications channel, Martec’s tried and tested solutions highlight and hone the interpersonal skills of customer facing staff, giving them the confidence to convey trust, integrity and credibility, delivering positive customer experiences. The better the customer experience the more rewarding their purchase will be. “I have to say that Martec have made a significant contribution

to the success of the company. We brought them in to help us improve our performance and they’ve delivered. Our customer satisfaction ratings are very good and sales across the Group are strong. Our staff love them and our team is confident, self motivated and successful, and know how to give our customers a great experience, every time.” Gary Smith, Group Operations Director When you decide you want even more sales success, contact us on 0844 854 9669

0844 854 9669 Martec Europe Limited, 14 Chiltern Court, Asheridge Road, Chesham, Bucks , HP5 2PX

Email: training@martec.co.uk Twitter: martec_europe www.martec.co.uk

focus on.

guide to the sales process training

Born salesman? Not always W: martec.co.uk T: 0844 854 9670

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It strikes me that people don’t come born with an innate knowledge of how to sell cars. Some people have better communications skills than others

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ou have probably been in the motor industry for a while, and for you selling a car to a punter is probably as easy as riding a bike. But while you might be very good at it, new sales executives joining your team might not have the skills to cut the mustard. But that’s not their fault, believes Martec Europe’s managing director Neil Pursell. ‘It strikes me that people don’t come born with an innate knowledge of how to sell cars,’ he explains. ‘Some people have better communications skills than others, but they don’t necessarily have all of the raw material to be a fantastic professional car sales person. So when they join the motor industry they need to be trained how to do these things correctly. And they especially need to be trained if they have had sales experience in the past because it needs to be converted into the industry of selling cars and they need to be mentored into the emotional side of our business.’ Emotional? Absolutely so. The car industry is one of the few sales arenas where a part exchange is involved and where the customer has an emotional attachment to it. ‘People need to have training in how to translate their skills they currently have into motor industry applicable skills,’ says Pursell. But how about salesmen who have been in the industry for a long time? Surely they don’t need to be trained too? ‘When you’ve been in the industry for years, if you don’t practise your skills in a training environment then the only place you can practise them is live with customers,’ explains Pursell. ‘What tends to happen is that you only practise the things which seem to be working with the customers you are talking to at that moment. If we take the scrappage scheme as an example, the things that sales people did when they were talking to a customer about a scrappage purchase would have been quite different from how a sales person would talk to a customer now who’s not buying under the scheme. What they did was to

learn over a nine-month period how to sell cars on the scrappage scheme. And now, without the scrappage scheme, they have got to re-learn the tactics. ‘That’s not to mention the way dealers deal with customers’ expectations which are constantly changing – so unless dealers hone their skills, quite frankly, they will be left behind.’

Pursell can speak with authority here. He has been working with the firm for 16 of the firm’s 20-year existence – and in the past two decades, Martec has proved it knows what it’s doing. Their trainers, for example, used to be car sales people themselves so they understand dealer’s lives and they have done their homework, too. ‘One of the things we have done is to carry out customer research and listen to customer telephone calls,’ says Pursell. ‘Every year we are listening to around 500,000 customers on the phone to find out what they are asking dealers and what they want. Because we listen to this many people we can spot trends in consumer attitude quicker than anyone else.’ This enables Martec to train dealers in the customer of the here and now. ‘But our main thing is that managers can manage the process that we put in place. Simple and elegant sales processes – which customers enjoy being taken through – can only be simple and elegant if managers manage them. This results in a consistent and simple sales process.’ CarDealerMag.co.uk | 65

Need quick and

accurate valuations on part exchanges based on real-time market conditions?

Manheim Seller Advance can provide you with an end-to-end valuation and disposal service, maximising sales with minimum effort. Our award winning service successfully delivers results in 5 easy steps: 1 Instant valuations accurate online valuationâ&#x20AC;&#x2122;s in seconds 2 Minimal paperwork just a few clicks of the mouse needed, no need for any time consuming administration 3 Cash in the bank improve cash ďŹ&#x201A;ow with full valuation advanced the next working day by BACS 4 Maximising sales values by taking advantage of our pre-sales services and nationally branded auction programme 5 Rapid reconciliation of funds within one week

INTERESTED? To find out more about Seller Advance: Tel: 0844 856 4545 email: seller.advance@manheim.co.uk www.manheimremarketing.co.uk/selleradvance NM2039_219

MANHEIM Seller Advance

focus on.

guide to the sales process valuations

Sales-floor savvy W: selleradvance.com T: 0844 856 4545

elling a car is not only just about getting the customer to sign on the dotted line, there’s a whole number of factors linked to the deal. But there is one element that is often overlooked – the valuation of the customer’s part-exchange. If that wasn’t bad enough, the past few months have also been tricky for dealers. ‘The most important thing is getting the customer to the dealership,’ says Daren Wiseman, Manheim’s general manager of valuation services. ‘The feedback we get from dealers of all sizes is that footfall has fallen dramatically in the past few months. In the summer, this normally happens, but dealers are telling us this year footfall numbers have fallen more than in previous years. ‘Dealers are spending a lot of money on advertising to get customers into their dealerships and most of these customers have a part exchange to dispose of. ‘The accurate value of that part-exchange can be a deciding factor in whether the dealer does a retail deal or not. Obviously, this is one of a number of factors – but valuation is key. ‘Dealers are also telling us that accurate valuations will help them for the rest of the year

in terms of business,’ adds Wiseman. In light of the importance of valuations, Manheim has designed a system called Seller Advance. It is an end-to-end remarketing product, and is a simple five-step process from valuation to the car being sold at a Manheim auction. Step one sees an instant valuation carried out. The dealer appraises the part-exchange and then obtains an online valuation from Manheim. ‘One big thing that dealers are facing is motivating their sales people,’ says Wiseman. ‘This forces the sales person to go out there, examine the car and drive it. That in turn gets the customer more interested because they can see that the salesperson is taking their pride and joy seriously.’ Crucially the valuation from Manheim is 93 per cent accurate thanks to a clever VRM system, making the deal far more robust. There’s also another major benefit, as Wiseman explains: ‘Seller Advance also includes an accurate recognition feature. Dealers are facing up to 60,000 different model derivatives in the market place, and one of the biggest issues facing dealers in the valuation of cars is mis-identification. While a Ford dealer might know his Ford models

very well, that Ford dealer probably won’t know too much about a BMW and might misidentify the customer’s part-exchange. That in itself can create a inaccurate valuation – we are narrowing down the room for error in the valuation process.’ Once this has been carried out and the dealer decides the customer’s part-ex is not for retail, they can then set a projected delivery date for the customer. Step two occurs as soon as the customer has dropped off their part-exchange. The dealer can then ‘push’ the car into auction all online, therefore saving time. Step three happens once the car arrives at a Manheim auction – the firm inspects it and pays the dealer the agreed valuation. Meanwhile step four allows the dealer to set a reserve price for the car. Once the vehicle is sold, step five kicks in. If the vehicle made money above the advance payment, Manheim will pay out the difference. If the car loses money, Manheim will debit the dealer. ‘Seller Advance has been live for dealers for the past 18 months and we are finding that dealers are expressing more and more interest in it because of the help it can give to them.’

CarDealerMag.co.uk | 67

For finance. For insurance. For business growth.

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

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

focus on.

Guide to the sales process finance

Flawless financial solutions W: alphera.co.uk T: 01256 749236 So, why is Alphera the finance provider to use? ‘We are a champion of the compliant and customercentric sales process,’ replies Halil. ‘We firmly believe in putting the customer at the centre of that process. And we provide very good and readily accessible support to our dealers to make sure their sales

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Dealers should be asking ‘How much a month are you looking to spend?’

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lphera Financial Services’ director Spencer Halil is clear on the reason why finance is an important part of the sales process. ‘It’s key on a number of levels but first and foremost we strongly believe that finance sells cars,’ he says. ‘The vast majority of customers will need some form of funding one way of another, and while it is often the case that a customer hasn’t made any enquires into their actual finance solution or source, very soon after they will be – finance is an enabler, it facilitates the whole transaction.’ Alphera, who provide the financial services for both BMW and Aston Martin, find that dealers who have a very integrated approach to finance are able to lock that customer in and contact them more readily. That’s because the question of whether they could afford it is tackled at the same time as the purchase, rather than the customer having to go off and check with their bank. ‘To be fair, though,’ says Halil, ‘there are very few dealers out there who don’t have some form of finance provision, but what we find though is that the level of integration into the sales process varies quite dramatically. Those who have finance very much more integrated early on in the sales process are more successful in terms of their finance penetration, their income from finance, their ancillary and insurance product sales and ultimately, their car sales.’ Halil is clear that the sale of finance and the sale of a car are not two separate processes – if dealers sell the car and then sell the finance, the outcome is far less successful. ‘Finance needs to be present throughout the whole process and especially before the process – marketing and flyers on cars to show the customer that finance is available and what it will cost. The customer should not have to work hard to find out what the dealer can provide them with.’ Halil has some top tips on how best to intergrate and use finance in the sales process. ‘As soon as the dealers starts qualifying their customer, they should be qualifying the customer’s finance needs too,’ explains Halil. ‘Dealers should be asking ‘How much a month are you looking to spend?’ rather than ‘How much do you want to spend on a car?’, and should be sowing the seed for finance as well – using hooks like ‘If I could show you a way to have a new car more often and still keep the payments level with what you’re comfortable with, would this be of interest to you?’ That is great for PCPs.’

processes are fully compliant and that they have the right outward expression of the compliancy. ‘In addition to that, we also have one of the broadest range of products available which really helps the dealer to match the product to the customers’ needs. ‘We also have insurance products which allow the dealer to spread their income and we champion the F&I consultancy approach to developing the dealer’s performance. This is about how we as a business work with our dealers in order to improve their income and their ability to support their customers’ needs.’ The firm also has training modules to help dealers in the sale of financial products in the sales process.

CarDealerMag.co.uk | 69

200,000 WARRANTY CLAIMS A YEAR. AND RELATIONSHIPS HAVE NEVER BEEN STRONGER.

Car Care Plan Limited is authorised and regulated by the Financial Services Authority.

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Guide to the sales process warranties

Talk a good deal W: carcareplan.co.uk T: 0844 573 8000

Talking to customers about warranties is key to selling them

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It sounds very, very basic, but if dealers don’t offer warranties to customers, dealers will not make the sale.

But the most important tip is to make sure dealers offer warranties to every single customer who buys a car. ‘It sounds very, very basic, but if dealers don’t offer it to customers, dealers will not make the sale. There are still dealers who don’t offer extended warranties and are selective about who they sell them to. That is wrong. Every buyer is a potential warranty customer. Why not use that opportunity to sell extended cover?’ Car Care Plan is one of the leading warranty providers in the UK, and pride themselves on the

‘‘

f there are any absolute knowns when selling a car, one is that a customer will need a warranty of some kind or another. Cars might be more reliable these days, but they are also more costly to repair, and customers want to maintain their car throughout the ownership process. ‘Some customers will want a warranty to protect their investment, some will want to do it to minimise their costs, and some will do it to maintain their relationship with their dealer,’ explains Andrew Jackson, Car Care Plan’s head of marketing. ‘For dealers to captilise on that and to make sure they don’t miss out on subsequent repair and maintenance work, it is an absolute no-brainer really for dealers to sell warranties to every customer who walks through the door. ‘Due to every customer needing to maintain their car, every car buyer therefore is a potential warranty customer.’ Warranties should not be sold separately in the sales process – in fact they should be sold hand in hand. ‘The dealer has some statutory obligations under the sales of goods act, so why not formalise that?’ says Jackson. ‘Why not provide customers with absolute crystal clear protection through the sale of a warranty, and extend those obligations with the customer?’ Jackson makes a valid point. Warranties provide dealers with a lot of opportunities to make more money for deals. And the selling of warranties should be done all of the time, adds Jackson. ‘Sales of warranties are not seasonal, and it is not something that goes hand in hand with peaks and troughs of volume. What it is, though, is something that really, in the same way for a lot of supplementary products, should form part of the selling process to the customer. ‘Warranties are something that customers need all year around and it is a product which dealers can capitalise on and make money on all year.’ Jackson has some good advice for dealers on how best to sell a warranty and how to integrate them into the sales process. ‘Dealers should be asking a number of questions to qualify the sale,’ says Jackson. ‘The first is how long the customer expects to keep the car. If that goes beyond the existence of any previous warranty then there’s then an opportunity to sell extra cover. Secondly, what is the customer going to be using the car for? Customers have different requirements but a warranty can meet all of those.’

way they do business as every deal is bespoke to a dealer or manufacturer programme. ‘We talk to the dealer to make sure the cover is appropriate, and we make sure we are looking at the type of stock that they are selling, we make sure we are offering cover which is appropriate to the types of buyers they are selling cars to. ‘We don’t have off-the-shelf warranties – customers who buy a warranty from a dealer using Car Care Plan, are getting the cover they need, not the cover the dealer is selling.’ CarDealerMag.co.uk | 71

focus on.

Guide to the sales process PAINT PROTECTION

Shine on W: supagard.co.uk T: 0141 633 5933

n some circles the selling of paint protection is viewed with a little bit of cynicism. Compared to other services in the sales process spoken about in this guide, paint protection could be seen to be the poorer relative. But, if you have this view, then you’re not only unwise, but are missing out on a crucial revenue maker and a sure-fire way of keeping your customers happy. ‘It’s an integral part of the sales process,’ says Supagard’s head of sales and marketing Nick Horton. ‘It should not be overlooked.’ Horton’s words could not be more true. With consumer confidence seeming to be an ever-decreasing syndrome, selling products which can do some good to consumers’ prides of joy can be a real up-lifter. But how should you sell paint protection? Well, there’s two good ways, explains Horton. ‘The first is the qualifying stage,’ he says, ‘whereby the dealer explains and advocates the benefits paint protection bring to a customer’s car, gradually introducing the product in a step-sell way. This is a great way because the dealer is showing transparency in the process.

72 | CarDealerMag.co.uk

‘The other is more to do with part exchanges. On appraisal of the customer’s car, a dealer can subtly point out the benefits of paint protection if that car’s paintwork is dull or tarnished. If paint protection was used, the car’s part-exchange value would therefore be more.’ Don’t think of these as underhand tricks of the trade, though. Unlike a car, a customer has not entered the showroom to buy paint protection, so it needs to be sold in the best way for the customer’s and dealer’s benefit. However, as with many things, when selling cars there are mistakes that can be easily made. ‘They are all unwitting,’ says Horton, ‘but they nevertheless happen and there are ways to prevent them.’ The first of which is a very easy one to slip into and could persuade the customer to actually walk away from the whole deal entirely. ‘It is the assumption offer – a salesman who just assumes the customer will know what paint protection is and fails to explain it. This can reduce the importance of paint protection and devalue the product.’ A worse mistake is assuming that the customer will just agree to adding paint protection to the

deal while another is not demonstrating the product. ‘We understand that it is difficult to demonstrate what is basically an invisible product, but correct explanation of the product and of its benefits will make the customer better understand what has been done to their car. It will also make customers feel a lot happier knowing that the dealer has applied the protection after spending around £300 on it.’ Supagard understands that these mistakes don’t happen intentionally – far from it. The firm understands it so much that they offer a training service to dealers so that they can best understand how to sell paint protection. They offer one-day workshops to allow dealers to build their knowledge, their confidence and skills of the services and products Supagard offers, and these take place all around the country at dealerships and at conference centres. ‘It’s proven to be a help to dealers,’ says Horton. ‘We have proof that the average increase in performance in selling protection packs is 144 per cent.’ Surely shocking statistics like that are proof, if it was needed, that paint protection should be an integral part of your sales process? [CD]

RIGHT CLICK.

..in association with GForces

Tapping into the tyre market Are dealers ‘tyred’ of fighting with local garages and retailers, asks GForces’ Tim Smith Surveys suggest customers trust their dealer for tyre advice

ecent research shows the UK replacement tyre market was worth around £1.29bn in 2010, with business distributed between fast-fit chains, independent garages, online tyre specialists and franchised dealerships. A 2010 US Tyres Review, studying hundreds of independent dealers across North America, revealed a proactive and clear understanding of the importance of tyre sales in a dealership. The research further highlighted what could be perceived as a latent approach among many dealers in the UK. Results showed that, while 34 per cent of customers wanted a specific brand of tyre, 55 per cent would happily switch based on dealers’ recommendations. This is a clear indication that nearly nine out of 10 customers rely on dealers for the ’right’ tyre’. A 2010 Google Aftermarket report confirmed this. Of customers who shopped on the web for tyre prices and information, 89 per cent preferred to buy in person at a garage, citing installation, time and professional advice as vital considerations. It’s widely acknowledged that customers need to be regularly reminded when it comes to aftersales. That’s why most dealers must be active with their advertising. The US study reveals 51 per cent of

dealers advertise new tyres on their websites as well as via social media, aware tyre sales on the internet is encroaching on their market. With larger retailers – such as Tesco, AA and Costco – taking a greater slice of the automotive pie, many programs have been put in place to allow customers to purchase tyres online and have them fitted within hours. Operations such as ‘site to store’ and low warehouse prices mean the importance of independent dealers’ personal relationships is slowly being eroded. Quite simply, this advantage isn’t enough in an industry where consumers are driven by the convenience and perceived value of online shopping. No dealer wants to give their customers a reason to go elsewhere. With Google’s claim that 66 per cent of customers still purchase offline following online research, there still remains a third of customers to target. In January, Mark Crockett, director of service and quality at Renault UK, announced plans in Car Dealer to ‘help drive down’ the cost of motoring

by introducing its own high-quality, low-price tyre brand. ‘After servicing, tyre replacement is the second most frequent reason for a motorist to visit a dealership or workshop, and is also one of the highest-value items when maintaining a vehicle.’ It’s apparent that, with rising motoring costs, the threats posed by large retailers and cheaper alternatives are minute compared with the opportunities dealers can offer. Dealers would benefit from a program and simple quotation system that allows customers to shop for tyres and other parts. With an opportunity to compare prices and brands, consumers have the reliable functionality of finding the tyres they need and dealers can continue to build on customer retention.

Who is Tim Smith?

He is commercial director for serial award winners GForces. Learn more about how he can help you at gforces.co.uk or call 0845 658 9290.

‘Nearly nine out of 10 customers rely on dealers for the “right” tyre.’

ND|Service Plans can help you save more than 50% of the costs over your current provider... To find out more, call our Digital Solutions team on 0845 658 9290 or visit www.gforces.co.uk.

0845 658 9290

www.gforces.co.uk CarDealerMag.co.uk | 73

Trailblazing Auction Facilities Our vision has become a reality... See for yourself and visit our new state-of-the-art twin-glazed auction halls at Chelmsford. More changes are coming at our other sites, providing...

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auctions.

Ford Retail wins award from Motability Operations bit.ly/FordAward

Taking the fear out of buying at auction Auction house acts to help buyers overcome their concerns

Record truck sale MANHEIM Auctions Gloucester recently achieved a record sale worth nearly £1.5m. The sale saw 461 light commercial vehicles and trucks go under the hammer and attracted nearly 350 buyers, including 146 who logged on via Simulcast. Simulcast proved especially successful with 18 per cent of the vans and 58 per cent of the trucks sold on the day going to online bidders. Vendors included Arval, Hitachi Capital, Inchcape Fleet, Lex Autolease and Northgate. James Davis, general manager, commercial vehicles, said: ‘It was a great day for everyone.’

auction stations

Good, bad or indifferent for the used car market?

wo thirds of British motorists are ready to buy at car auctions if they are confident of the full history of the vehicle, research by Manheim Auctions has revealed. More than half of those surveyed would require a guarantee or warranty as reassurance, while 40 per cent would consider buying if they were confident the vehicle was a great deal. The research shows a shift in consumer opinion towards buying at vehicle auctions, compared with a similar survey commissioned in August 2010. Last year, Manheim Auctions revealed that 85 per cent of motorists never considered visiting a car auction, with more than half believing it to be an intimidating experience due to a lack of understanding of the auction-buying process. But while motorists now appear ready to buy at auction, there is still a need to educate the public to counter common misconceptions. In response, Manheim Auctions is running a series of Auction Awareness Workshops across the UK, inviting motorists to come along and learn about the workings of the buying process and dispel the auction myths. ‘It’s a common misconception that a car

Henstock

auction is an intimidating place. People mistake the car or van auction environment as a shady place where shady deals are done. But we know different and our research shows that consumers are now considering buying a vehicle at auction and opinion has shifted since August last year,’ said Craig Mailey, marketing director of Manheim Auctions. ‘To encourage more people to have confidence in the auction process, we’re running a series of workshops so that consumers can learn more about what really happens at a car auction. ‘Members of the public can come along, learn more about how an auction works and we can take them through the whole process; explaining where the vehicles come from, how to use the website, buying fees and top tips for what to look for in the auction hall.’

Dealers’ virtual bidding nets BMW a £9m profit BCA and BMW have combined for a special sale staged at BMW’s impressive headquarters in Munich. BMW flew 120 UK-based dealers to the massive complex, and BCA used online technology to stage a 350-car sale at the facility. The sale included the auction debut of the new 6-Series convertible models and BCA Live Online was used to take the bids from buyers in Munich in real–time. Every vehicle sold for a 100 per cent sale success that generated a turnover of £9.5m and an average selling value in excess of £27,100. BMW Group UK’s general manager of used cars Matt Bristow said: ‘Our dealers had a great opportunity to sample the BMW experience and buy direct.’

ith the ongoing economic gloom and a general air of resignation from much of the retail sector, how has 2011 been for the car markets so far? It’s certainly tough out there and, as far as the new car market is concerned, the latest SMMT forecast – revised in July – suggests a five per cent decrease year-on-year, underlining some of the marketplace difficulties post-scrappage. BCA’s half-year data suggests that the used car markets are steady and average prices across all used cars have been stable for the past 18 months. Values for fleet cars were higher in the first half of 2011 than those recorded when the market was accelerating in 2009 – which might surprise some. In the first half of 2011, the average used car value was £5,802, equivalent to a £47 decline from 2010, while year-on-year values are just £32 behind. That’s not to say there are no changes afoot. Looking at the half-year averages, the age of cars sold has been rising since the back end of 2008 and went above 61 months for the first time on record in 2011. Average mileage has also been rising and nearly reached 59k in the first half of this year, another market highpoint. This suggests owners are keeping cars for longer before selling. BCA suggests this may become a fact of life for the used market over the next few years, as the available car parc becomes ‘older’, due to lower sales of new cars. The quarterly data is also revealing. With the difficult start Q2 endured with multiple Bank Holidays in April, the final analysis shows average values fell by 3.4 per cent compared to Q1. Unsurprisingly, average used car sold values fell too, The markets recovered in May, but by June an element of seasonality saw values declining again. Average quarterly values are now at their lowest since Q1 2009 and are broadly on a par with those recorded just before the ‘credit crunch’ in 2008. The Q3 figures could provide an indication of where the market dynamics are going – a climb might indicate the used market is following seasonal patterns; a fall would set a worrying precedent of decline.

‘Average quarterly values are on a par with those from before the credit crunch.’

Who is Simon Henstock?

Simon is UK network operations director for BCA. Visit british-car-auctions.co.uk or call 0845 600 6644. CarDealerMag.co.uk | 75

NET GAINS.

..in association with Codeweavers

Don’t neglect your web customers Your dealership website should be much more than a mere shop window

f you were to ask 1,000 motor dealers the main reason they had a website and an online presence, there would be a broad range of answers. I’d imagine these would include reasons such as a ‘shop window’ to display their stock, or an ‘online brochure’, designed to communicate the dealer’s brand and image. There are, of course, many compelling reasons to have a credible web presence. In many instances dealers fail to list one of the most important ones – to give people a reason to buy from you as opposed to anyone else. This can be achieved in many ways, and this month I will list one or two examples. Firstly, highlight what’s different about your business. There are really only two strategies you can pursue here – cost leadership (ie. you are the cheapest) and differentiation (ie. you are different in some way). My suggestion is to pursue the latter, as being a cost leader is only viable until someone else comes along with a cheaper price, at which point your strategy is invalid. So how can you demonstrate you are different? Well, one way is to focus on the customer service angle, and to include testimonials from satisfied customers. These could take the form of video content for extra effectiveness. Also, you could focus on the aftersales side as well as the vehicle sales aspect of your business. Consider

STRENGTHEN YOUR SALES

0800 021 0888 www.codeweavers.net contactus@codeweavers.net 76 | CarDealerMag.co.uk

The Carshop uses video testimonials on its website

‘The web customer demands information before they contact you.’ complimentary wi-fi access for your web service customers – whether laptop or smartphone, it’s a safe bet that they would make good use of the wi-fi when they visit you. My number one tip is to ensure that your website provides as much information as possible to allow customers to justify contacting you, whether that contact is by e-mail, phone or walk-in. As you know, Codeweavers provides interactive F&I content for dealers’ websites, and every now and again I meet a dealer who tells me they’re not keen on placing finance information next to their stock. The concern they have is that there is ‘too much information’ being provided to customers. How on earth could providing

prospective customers with information on how affordable your cars are ever be a bad thing? I once illustrated this point by asking a dealer (tongue in cheek), if this was the case, would he consider displaying his stock with no prices! In reality, the web customer demands this information before they contact you. If you don’t provide it, they’ll just get it elsewhere. Please don’t confuse the web consumer with a captive traditional ‘walk-in’ customer that isn’t perhaps as well informed. Web customers like nothing better than to gather their information – so make it easy for them. I believe any progress you make in this area will result in increased web visitor times (which you can easily track) and better-informed customers.

Who is Martin Hill?

Martin is commercial director at Codeweavers. Learn more about how he can help you at Codeweavers.net or call 0800 021 0888.

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SHARES.

..in association with ASE-global.com

Poor retail outlook casts a shadow over motor stocks Rocky road ahead for dealers as share prices finally react to badly hit retail market

inchcape defiant despite share price fall

he current depressed retail outlook which is affecting the motor retail sector finally hit home within the prices of the listed motor retailers during July. There were two main catalysts that prompted the price falls. The first was the raising of concerns over Inchcape’s prospects as a result of a perceived weakness in Singapore and Australia, two of the company’s core territories. This prompted an eight per cent drop in the share price, effectively giving back the gains made over the past two months. These factors have limited impact on the other UK listed stocks given their majority (or total) focus on the domestic market. However, the recent sentiment that Inchcape stood to benefit from the fast growth in the rest of the world while the UK takes its time to emerge from recession has certainly been shaken. Closer to home, Vertu issued a trading statement ahead of its AGM. This statement placed into the public domain the situation car dealers have been facing since the end of the

‘July looks to have set the tone for the remainder of 2011.’ first quarter with the ‘fragility of UK consumer demand’ producing downward pressures on both new and used car markets. This saw the Vertu share price fall 15 per cent as the brokers re-priced their assessments of current-year profitability and the effect that weak consumer demand has on their volume-focused sales model. The Pendragon share price dropped nearly 30 per cent in July. Unlike Vertu and Inchcape the Pendragon price had not enjoyed a boost in June so the current price is approaching the 52-week low. The drop comes from the announcement that the company is to tackle its debt position through a rights issue to existing shareholders. While the introduction of capital funds to reduce the debt burden will strengthen Pendragon’s balance sheet the effective price of

DEALER group Inchcape has announced its half year results for the period ending June 30. Profits before tax amounted to £126.8m, up 10.1 per cent on 2010, and estimated profit per share is 19.6p, up 14 per cent. Operating cash flow totalled £73m. However, reported sales was £2.9bn; down 5.3 per cent in actual currency and down 6.7 per cent in constant currency. Two thirds of trading profit for Inchcape was generated from Asia Pacific and the emerging markets, and a tight control on overheads resulted in costs reduced by 8.6 per cent. Andre Lacroix, CEO of Inchcape, said: ‘We’ve delivered a good performance in the first half of the year which is a testament to the strength of Inchcape’s unique business model and differentiated customer first strategy. We’ve benefited from increased consumer demand for premium and luxury vehicles in Russia and the emerging markets and our operational 10p has naturally depressed an already falling share valuation. On the positive side it will remove the uncertainty over banking negotiations and leave the directors free to concentrate on improving business performance during the remainder of 2011. As expected, Lookers produced an immediate half-year trading update to quell some of the rumours as to the reasons Jack Petchey and his consortium downgraded their offer for the company before negotiations were terminated. The statement reassured investors that trading was ‘very close to the record first-half performance of 2010’ and that the matters uncovered during the due diligence which led

discipline on both commercial and cash initiatives has enabled us to deliver a healthy growth in profit before tax of 10.1 per cent and earnings per share growth of 14 per cent. ‘Our competitive position continues to improve through our strategic commitment to superior customer service and our operational focus on our top five priorities of growing market share, growing aftersales, improving margin, controlling working capital and selective capital expenditure investment. ‘While in some of our markets we’ll continue to experience a temporary supply restriction on new cars as a result of the earthquake in Japan, we believe the group will deliver a solid performance for 2011, in line with our expectations. We expect the uneven global economic recovery will continue as inflationary pressure and government austerity measures will affect consumer confidence.’ to the price revision were property and pensions related. Aside from the drop-off in price following the termination of sale negotiations, the price has remained relatively static with the strong aftersales focus of the business again mitigating some of the retail risks felt by other shares. Cambria and HR Owen both saw share price falls on the back of the general concern over the retail outlook. July looks to have set the tone for the remainder of 2011 with each retailer looking to convince the market their business model is holding up well in the face of a depressed retail market. There will be potential opportunities – but significant bid activity may have to wait until the markets show signs of improvement.

Who is Mike Jones? He‘s executive chairman of ASE Global. If you want to talk to him about his column call 0161 493 1930 CarDealerMag.co.uk | 79

3,000 dealers...and counting! Since its formation in 2003, the WMS Group have certainly continued to live up to their reputation as the dealer’s favourite used vehicle warranty partner in the F&I sector. More dealerships have come to us to help increase profit margins with some having reported a product penetration increase of over 60%, whilst retaining their customers for service and repair work. We have bespoke warranty products and solutions for all FSA and non-FSA registered dealerships - to see our product range, visit our website below or call our business development director Eric Stone on 07789 682502 or Malcolm McIntosh on 07770 343330 to find out how we can fit into your dealership. Whatever the shape of your business, we’ll provide comprehensive sales and compliance training under the FSA framework – it’s as easy as 1,2,3!

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DATA FILE.

..in association with

Thestatistics Used Cars n Top 10 Searches n SMMT Sales Data

Londoners lead the way when it comes to green motoring C

amden, Westminster and Islington are home to the greenest motorists in Britain, suggests new research. EcoVelocity studied vehicle registration data from the SMMT and found that more than one-in-four cars – 28 per cent – registered in the WC postcode have CO2 emissions of 100g/km or less, the highest proportion of ‘green’ cars in the UK. London postcodes dominate the 10 areas featuring the highest ratios of ecofriendly vehicle registrations, with SW (including Clapham, Wimbledon and Putney), EC (City of London, Hackney and Tower Hamlets) and N (Barnet, Haringey and Enfield) the next greenest boroughs. Portsmouth is the most environmentally friendly town outside the capital, with 5.9 per cent of cars registered in its PO postcode area low-carbon vehicles. EcoVelocity event director Giles Brown said: ‘It’s perhaps no surprise that drivers in London are cottoning on to green motoring quicker than anyone else – after all, the capital boasts more

charging points for electric cars than any other region of Britain and commerciallyavailable electric cars are all city cars. ‘So drivers in other towns potentially have less opportunity to go green but now the rest of the UK needs to take note and understand the fundamental need to fully support the drive towards cleaner, low carbon-emitting vehicles. ‘Through the EcoVelocity show, we aim to demonstrate to people that green motoring is here to stay.’ London is a haven for environmentally friendly drivers, with 93 charge points for electric cars. The region with the fewest charging points is Wales, with only three in the entire country.

Users turn to mobiles to visit Motors.co.uk Motors.co.uk has seen a 300 per cent increase in visits and a 550 per cent increase in page views from mobile devices in the past 12 months. ‘Now is the right time for car dealers to address how best to optimise their

websites for use via smartphone browsers. A really great mobile site can act as a clear acquisition channel to introduce new users to the desktop site,’ said Phill Jones, the firm’s commercial director.

Kelleher

Market insight

Don’t neglect Android

re you ready for the explosion in smartphone growth? According to new research, there has been a 68 per cent increase year on year in terms of smartphone sales, which now account for 37 per cent of all mobile phone sales, and are tipped to reach critical mass in the next twelve months. Some 77 per cent of smartphone owners navigate the internet via their handsets compared with just 39 per cent on non smartphones, while search on mobiles specifically grew by 247 per cent over the last 12 months – in the same period that search on desktop computers fell by 15 per cent. Clearly, the time would appear right for car dealers to address how best to optimise their websites for use via smartphone browsers. In a recent survey that we conducted, 85 per cent of respondents said that if they found a really good mobile site then they would check the ‘main’ desktop version of the site. In terms of the key question of prioritising your mobile and app development to get the most value, while it’s tempting to think the world starts and ends with creating an iPhone app, the real winners over the past year have been Android, who now enjoy a 37 per cent share of new smartphone sales. If you’re not ready to commit to building apps for all three of these eco-systems then our advice would be to focus on creating a pared-down, simple mobile version of your site that focuses on delivering prospective buyers the really important information they need.

Who is Dermot Kelleher?

He is head of research at Motors.co.uk. Find out more about how the portal can help you on their website or call 0845 265 6000.

sales@motors.co.uk

0845 265 6000 www.motors.co.uk/mediacentre

CarDealerMag.co.uk | 81

DATA FILE.

Thestatistics Used Cars n Top 10 Searches n SMMT Sales Data

The most searched-for cars on Motors.co.uk

Most popular manufacturer 1 Ford 2 Vauxhall 3 Volkswagen 4 BMW 5 Mercedes-Benz 6 Audi 7 Peugeot 8 Toyota 9 Mini 10 Renault Most popular models 1 Ford Focus 2 BMW 3 Series 3 Ford Fiesta 4 Volkswagen Golf 5 Vauxhall Corsa 6 Vauxhall Astra 7 Ford Mondeo 8 Peugeot 206 9 Audi A3 10 Renault Clio most popular sub £10k cars 1 Ford Focus 2 Ford Fiesta 3 Vauxhall Corsa 4 Vauxhall Astra 5 Peugeot 206 6 Renault Clio 7 Vauxhall Zafira 8 Peugeot 207 9 Volkswagen Polo 10 Peugeot 307

Second half of 2011 will be a challenge N

ew car registrations were down 3.5 per cent in July, the lastest figures from the SMMT reveal. Some 131,634 cars were sold in the month, and the SMMT says the market is still in line with its expectations of 1.9m units this year. SMMT chief executive Paul Everitt said: ‘New car registration figures fell marginally by 3.5 per cent to 131,634 units in July, reflecting the impact of slower economic growth and subdued consumer confidence. ‘Robust demand in the fleet sector helped to bolster weaker private demand. While the coming months remain challenging, performance in the second half of 2011 is expected to keep the market on course to reach around 1.93m units.’ Sue Robinson, director of the RMI National Franchised Dealers Association, added: ‘The 13th consecutive decline in the retail market proves that there is still a lack of consumer confidence.

Ford Fiesta still the best-selling car, but registrations fall by 3.5 per cent ‘Rising household bills and declining disposable incomes are making consumers cautious about committing to big ticket items such as cars. ‘The market is highly competitive at the moment with the best deals being sought out by the consumer. ‘Consumers are willing to buy if the price is right so there is a need for marketing and incentives that are attractive to the buyer. Also consumers need to be educated that a newer car may be cheaper due to better fuel economy and cheaper

‘‘

maintenance costs.’ The fleet market continued to improve in July. Private new car registrations fell by 9.2 per cent and have fallen by 17.3 per cent or more than 100,000 units over the first seven months of the year. The impact of the scrappage scheme predominantly influenced private volumes last year. The sluggish nature of economic recovery, high inflation and modest wage growth are acting as dampeners to consumer confidence. The Ford Fiesta was the best selling model in both July and the year-to-date.

Consumers are willing to buy if the price is right so there is a need for incentives.

sales@motors.co.uk

0845 265 6000 www.motors.co.uk/mediacentre 82 | CarDealerMag.co.uk

..in association with alfa romeo JUly 34.76%

SMMT sales data July/year to date

Mazda JUly -44.27% Figures supplied by SMMT

July Marque

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

2011

86 694 80 8,041 93 8,064 0 998 53 4,540 0 1 0 0 2,639 18,245 2,866 0 3,937 27 966 140 4,466 2,113 314 45 44 1,569 5,950 36 2,438 486 7,289 52 6,582 497 24 3,625 173 2,728 3,371 315 0 73 1,172 4,586 16,202 13,639 2,191 127 57 131,634

% market share

0.07 0.53 0.06 6.11 0.07 6.13 0.00 0.76 0.04 3.45 0.00 0.00 0.00 0.00 2.01 13.86 2.18 0.00 2.99 0.02 0.73 0.11 3.39 1.61 0.24 0.03 0.03 1.19 4.52 0.03 1.85 0.37 5.54 0.04 5.00 0.38 0.02 2.75 0.13 2.07 2.56 0.24 0.00 0.06 0.89 3.48 12.31 10.36 1.66 0.10 0.04

Year to date (YTD) 2010

% market share

2011 % Change

124 515 124 6,187 111 8,246 0 775 68 5,402 0 6 0 58 3,576 18,442 3,745 0 3,134 23 1,383 71 3,538 2,453 400 63 61 2,814 5,289 28 2,234 528 7,221 53 7,709 896 54 5,881 356 2,563 3,059 559 27 121 866 5,762 16,680 12,558 2,520 87 76 136,446

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

-30.65 34.76 -35.48 29.97 -16.22 -2.21 0.00 28.77 -22.06 -15.96 0.00 -83.33 0.00 -100.00 -26.20 -1.07 -23.47 0.00 25.62 17.39 -30.15 97.18 26.23 -13.86 -21.50 -28.57 -27.87 -44.24 12.50 28.57 9.13 -7.95 0.94 -1.89 -14.62 -44.53 -55.56 -38.36 -51.40 6.44 10.20 -43.65 -100.00 -39.67 35.33 -20.41 -2.87 8.61 -13.06 45.98 -25.00 -3.53

780 7,182 665 69,962 680 68,670 0 7,940 366 40,525 0 3 0 0 25,765 162,726 28,889 0 35,513 189 7,854 1,187 31,747 22,073 4,428 263 257 19,032 47,642 163 27,058 6,598 55,960 347 57,849 3,456 311 40,439 3,682 21,228 27,605 3,113 10 1,567 11,771 42,898 143,661 107,971 20,022 662 563 1,161,272

%market share

0.07 0.62 0.06 6.02 0.06 5.91 0.00 0.68 0.03 3.49 0.00 0.00 0.00 0.00 2.22 14.01 2.49 0.00 3.06 0.02 0.68 0.10 2.73 1.90 0.38 0.02 0.02 1.64 4.10 0.01 2.33 0.57 4.82 0.03 4.98 0.30 0.03 3.48 0.32 1.83 2.38 0.27 0.00 0.13 1.01 3.69 12.37 9.30 1.72 0.06 0.05

2010

%market share % Change

859 4,351 665 62,677 640 59,551 20 8,722 867 43,290 2 133 2 508 33,448 176,792 38,667 1 41,881 78 9,925 1,199 37,802 24,479 3,993 338 298 27,687 42,908 209 24,500 6,869 52,744 507 67,448 4,226 514 58,607 2,873 19,880 25,779 4,706 201 2,383 12,542 55,089 150,141 108,644 24,278 717 468 1,245,108

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

-9.20 65.07 0.00 11.62 6.25 15.31 -100.00 -8.97 -57.79 -6.39 -100.00 -97.74 -100.00 -100.00 -22.97 -7.96 -25.29 -100.00 -15.20 142.31 -20.87 -1.00 -16.02 -9.83 10.89 -22.19 -13.76 -31.26 11.03 -22.01 10.44 -3.95 6.10 -31.56 -14.23 -18.22 -39.49 -31.00 28.16 6.78 7.08 -33.85 -95.02 -34.24 -6.15 -22.13 -4.32 -0.62 -17.53 -7.67 20.30 -6.73

CarDealerMag.co.uk | 83

data file.

Alex Goy

all torque

Selling more motors with help from motorsports...

his month I’ve been watching far too much motor racing. Rallies, WTCC, F1, Scalextric (it counts, ok?) you name it and I’ve been gawping at it. But it led me to a question – how does it help to sell cars? I can see how Rally and BTCC/WTCC shifts units. You can see an approximation of a car you can go out and buy hooning around a dirt track/asphalt patch in the North. Which is great. What’s better is that dealers can borrow the previous year’s cars (or models of them) to show off on dealer events. When Audi first started winning Le Mans I was blown away at my nearest dealer because they had ‘the car’ that crossed the line first. Whether it was real or not doesn’t matter a jot – it was massively impressive and stuck with me to this day. But while the Le Mans car was very impressive, it didn’t make me aspire to buy an A4. It didn’t even make me want an RS4. And if you don’t want one of them (especially the Mk 1 2.7-litre V6 twin turbo) you’re essentially dead inside. What the Le Mans car made me do is think how awesome Audi is. I didn’t go – oh, the fuel injectors in the Le Mans racer are related to those on the shiny new A3. Such is the case with F1 cars – we won’t ever see the level of tech that goes on to an F1 car on, say, a Caterham. Come to think of it, you won’t get F1 tech on much other than an F1 car. Unless you buy a Ferrari or a McLaren – as they claim to be filtering various bits of tech from their GP racer to the road. Things like launch control, traction, etc. McLaren has extensive F1 tech at its disposal – so the MP4-12C was developed in an F1 simulator and uses brake tech developed for F1. Oh, and it’s full of McLaren’s carbon fibre wizardry. Which is pretty cool. But why does that matter to the ‘average’ punter? We won’t be able to afford an MP4-12C or a 458, but if we see the old Renault F1 car in a Renault showroom, we’ll know that they’re committed to being awesome. And, for some, that may be enough to get them into a Clio. If you can, it might be worth having a few days with ‘special’ guests.

‘We won’t ever see the level of tech that goes on an F1 car on, say, a Caterham.’

Who is Alex Goy?

He‘s a motoring journalist with a lot to say. He also produces a brilliant podcast. Check it out by typing bit.ly/alexgoy into a browser 84 | CarDealerMag.co.uk

Suppliers Video

Telemarketing

Call Solutions

C It Now

On Target

Intelegent

Auctions

Badges

BCA

Manheim Remarketing

Badgemaster

Cleaning Equipment

Online Trading

Health & Safety

Kärcher UK Ltd

Autotrade-mail.com

Connect HR & Recruitment

Digital Marketing

Web Design

Online Marketing

Autotorq.com

GForces

Webzation

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

W: british-car-auctions.co.uk T: 0844 875 3480 E: liveonline@bca-group.com Info: BCA offers more vehicles and more ways to buy them with physical sales, Live Online and Bid Now/Buy Now.

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

W: autotorq.com T: 020 7384 8501 E: enquiries@autotorq.com Info: Automotive digital marketing. Services include web platform programmes, social media campaigns, SEO, PPC & mobile marketing.

W: ontargettelemarketing.co.uk T: 0844 811 0483 E: sales@ontargettelemarketing.co.uk Info: Service & MOT follow up specialists. Rejuvenation sales calls, launch events, integration with your system or stand alone.

W: manheimremarketing.co.uk T: 0844 856 4545 Info: For further information please call sales support on 0844 856 4545 or visit the website.

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

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

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

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

W: connect-hr.com T: 0333 700 3030 E: info@connect-hr.com Info: Safety Management Systems, Risk Assessments, Policies, Training and Advice from as little as £195 per day.

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

FEATURED LISTING: Car dealer club FREE LEGAL ADVICE with every car dealer subscription CAR DEALER CLUB gives dealers of all sizes access to free legal advice from our motor trade lawyers worth £199. Members get a copy of Car Dealer Magazine every month as well as access to a host of discounts from motor trade suppliers – all for a paltry £24.99 annual subscription! This offer is only available to new subscribers, so if you haven’t renewed your subscription then you need to do so to gain access to this very special offer. Signing up is simple. Type CarDealerClub.com into a web browser

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

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

guide

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

mini test: Volvo XC90

Display Products

Cleaning Products

Car dealer says HHHHH

Portfolio Display

Drymotive

Online Advertising

Valeting Services

HugoFox.com

AutoKlean

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

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

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

Price: £38,095, tested in Issue 38

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

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

Insurance

Auctions

Key Cabinets

Vehicle Remarketing

Automotive CRM

Think Insurance

HBC

Keytracker Ltd

mfldirect.co.uk

Contact Advantage Limited

Finance

Smart Repair

Warranties

mini test: Superb Greenline II

First Response

Junair Spraybooths

WMS

Car dealer says HHHHH

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

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

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

W: junair.co.uk T: 01706 363 555 E: sales@junair.co.uk Info: Looking to increase revenue? Junair can supply a complete range of equipment at competitive prices for Smart and wheel repairs.

W: keytracker.com T: 0121 559 9000 E: sales@keytracker.com Info: No more lost keys. Best prices complete systems from just 10p per key! Seals, pegs & hangers from stock.

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

Finance

These Listings Work

Online Advertising

DSG Finance

More Sales For You

Netcars.com

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

The Skoda boffins have been working on their muchapplauded Greenline technology and have updated it with the Greenline II. Unlike with the previous Greenline range, Greenline II is not a specific trim level, rather a trim within trims. There’s no denying the 1.6-litre TDI isn’t the best engine for such a large car, but it makes a good go at it. We already know the Superb shows up other more expensive rivals. Now it shows being green needn’t be dreary either.

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

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

Finance

Warranties

Finance

Advertise Here

Black Horse

Car Care Plan

Duncton

Your company name

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

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

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

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

Price: £24,040, tested in Issue 38

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

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

Cheap Advertising It Really Works

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

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

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

CarDealerMag.co.uk | 85

data file.

James Litton trader tales

Shopping smart can net you a really decent deal

or the past year, more than half of my enquiries have been from people looking to swap their existing car for one of mine or have been looking for cash back. There is no doubt that rises in insurance premiums and regular increases in road tax have forced many to look hard at the cars they own and seek a change. A recent RAC report claimed that more than a third of all motorists had reduced the use of their car due to the price of petrol. While it is a natural step to want to change your car to reduce some of these costs, for many people the logic of this process is flawed. I am constantly hearing of deals where a low-mileage user shops in a perfectly serviceable petrol car for a new diesel to save themselves £100 a year on tax and gain 15mpg. However, the actual outlay of five figures plus interest if financed seems to escape their attention. Most of the swap deals I am offered are against my ‘part-exchange to clear’ cars. Some customers think it’s in their best interest to swap a 50k petrol family hatchback for a 120k small diesel car with no regard whatsoever to the actual cost of annual maintenance. Maintenance, too, is an area where people try to cut corners. How many people have stopped the routine service of their vehicle? How many cambelts are being replaced in this climate and if so with how many water pumps? The ostrich approach is common yet consequences are financially catastrophic when something goes wrong. Many of these cars are seen limping their way into dealers with the idea of passing the problem. So far the reduction in vehicle parc has managed to delay the reduction in residuals of less efficient cars but there are signs things are starting to change as evidenced by last month’s book drop. At what point the cost difference starts to encourage buyers back to these cars in big numbers remains to be seen, but there are some great buys out there for the canny individual...

‘The ostrich approach is common, yet consequences are financially catastrophic.’

Traderdir Alfa Romeo

Alfa Romeo

Aston Martin

Sturgess Alfa Romeo

Benfield Alfa Romeo

Aston Martin

Audi

HWM Aston Martin

Wimbledon Carriage Company Limited

Walton & Epsom Audi

John Crisp 07885 211872

Mark Loughnane 01932 220404 07739 519306

BMW

Bentley

Williams Rochdale

Vines Group

Harwoods

Bentley

Chrysler

Daihatsu

Jack Barclay Bentley

Horsham Car Centre

Alan Nicholas 07703199478 alan@horshamcarcentre.co.uk Best buyer for all late Chrysler/ Jeep

Stephen Barnard 0208 504 0017

Daihatsu

Ferrari

Proven Daihatsu

HR Owen Ferrari Nick Carey

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

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

Craig Fenlon 01706 717700 07808 092110

Derek Bennett 020 7629 7444 07713 887 88

Keith Pattison 01428 652554 07771 547406

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

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

Mangoletsi (Holdings) Limited Fraser info@mangoletsi.com 01565 722899

Simon Elkin 01798 877211 07803 088711

Woodford Motor Co Ltd

Monza – Ferrari

nick.carey@hrowen.co.uk 07824 362229

Andrew Ludlow ferraribuyer@ntlworld.com 07889 305 053

Ferrari

Fiat

Maranello Ferrari

Glyn Hopkin Ltd

Sturgess Fiat

John Dutton 07817 019 456

Glyn Hopkin 07730 711889

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

Who is James Litton?

James runs theinternetcarlot.co.uk. He's been in the business for 12 years and always has something to say about the industry he loves. 86 | CarDealerMag.co.uk

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

ectory

Finding the right cars at the right prices isn’t always that easy. On top of that, selling cars that you don’t necessarily want to put on the forecourt can be tough too. Our Trader Directory aims to alleviate these problems. Instead of thumbing through endless pages in

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

Ford

Honda

Benfield

Benfield Alfa Romeo

Lifestyle Ford

Honda

Thames Honda Group

Honda

Hyundai

Jaguar

Holdcroft Honda

Bushey Heath Hyundai

Hatfield Hyundai

Sturgess Jaguar

Charles Hurst Jaguar

Jeep

Kia

Lexus

Land Rover

Horsham Car Centre

Tower Hill Garage

Chapelhouse Kia

Lexus Twickenham

Sturgess Land Rover

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

Luke Regan / Chris Thursfield 07971 543884 07813 737 921

Alan Nicholas 07703199478 alan@horshamcarcentre.co.uk Best buyer for all late Chrysler/ Jeep

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

Jon O’Donoghue 0208 420 5100 07976 177 959

Lee Gilmour 01923 263700 07768 367085

Richard Walker 07748 177889

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

Andy / Neil 01925 570800 07891 531129 07825 311 297

Brayley Honda Mark Corr 07812 342 635

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

Dave Cooper / Steve Gurr 07831 704134 07921 408983

Jerome Chandiram 0208 845 3551

Stewart Begg 0208 938 1300 07534 927 821

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

Land Rover

mini test: VW Touran

Lotus

Maserati

Beadles Land Rover

Car dealer says HHHHH

Murray Motor Company

Meridien Modena

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

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

Graeme Robertson 0131 200 8888 07765 252745

Warren Butt 02380 283404 07860 530703

Price: £23,855, tested Issue 38

Maserati

Mazda

Mini

Mitsubishi

Nissan

HR Owen

Lifestyle Mazda

Vines Group

North City Autos (Chingford)

Nissan

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

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

General

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

Mark Spowage 01293 845045 07974 770020

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

Toyota

Volvo

General

Currie Motors Toyota

Sturgess Volvo

Sol Cars

Barry Freedman

Dave Cooper / Steve Gurr 07831 704134 07921 408983

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

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

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

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

Philip Wight Motor Co

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

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

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

CarDealerMag.co.uk | 87

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data fiLe.

Cheapness isn’t always the best way to get the customer

y wife and I have been looking for replacement windows and I continue to be fascinated by the different approaches companies take to promote their products. The first provider used the ‘turn the volume up to high’ technique, often used by those who believe that speaking loudly helps the listener’s understanding, and he wanted us to understand that buying his most expensive window was the correct thing to do. When I asked why, he told us it was ‘the best’ and he went on to dismiss every other product on the market using sentences that included the term ‘barge pole’; which wasn’t the most helpful insight. He then went on to try to qualify our budget capability, again dismissing those people who didn’t ‘invest in their property’ by buying ‘the best’ as clearly being quite stupid. We didn’t stay long. In contrast, the last company we visited spent a lot of time explaining their product’s evolution, the features and benefits of their ranges, and provided a tour of their factory to explain and demonstrate the quality, craftsmanship and service ethics that underpinned their business; and thankfully didn’t use the phrase ‘barge pole’ once. Even though this last company’s products are more expensive than the first we visited, we’re likely to buy from them because we felt comfortable in the way we were engaged and handled, and confident that the product meets our needs and expectations. I’m sharing this experience because I’ve always believed that great selling and great service go hand in hand. If you can make the customer feel both comfortable and confident in your approach and product, you’re 99 per

Don

Brough sub-prime time

cent of the way to securing a new profitable relationship; and you don’t have to be the cheapest to get the sale. With one-in-three customers unable to get prime finance rates, the non-standard population continues to expand. ‘New’ non-standard customers can get annoyed when they’re offered rates higher than they were expecting, and need more than ‘the best price available’ technique to be immediately persuaded to take out point-of-sale finance. Otherwise they’ll do what I did and continue to search for a company that handles their expectations and circumstances correctly. The aim is to make these customers feel comfortable in

‘I’ve always believed that great selling and great service go hand in hand.’ the way they are being dealt with and confident that they still have the opportunity to buy the car you’re selling. My advice is simple: Pass all potential non-standard customers on to a finance provider with the right service ethic, skills and experience to overcome the customer’s frustrations and concerns. Work directly with a non-standard finance provider who actually underwrites and books the deal, as this allows far more flexibility in getting the deal done and the customer into one of your cars. We’ve still to make a decision on our windows, but I can already say that I wouldn’t touch the first company’s products with… well, quite a short stick actually.

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

Coming next month road test of the Year

90 | CarDealerMag.co.uk

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

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