Car Dealer Magazine: Issue 45 by Blackball Media

De al Ca er r ice fo rm C em l be u rs b P

cash Conscious

Madder GT-R

CarDealer. Yes, it’s now even faster P34

le ga la dv

Our Guide to Saving Money P62

Issue 45 | December 2011 | CarDealerMag.co.uk | £3.50 Got stuck in lift. People laughed.

Made car look like ship. It sank.

Met The Stig. And his shorter cousin.

Batch was tempted by the dark side (it was the uniforms).

h s a c o t s r e g n a B m or team of intrepid travellers made £25,000 for BEN Fr ow ou p42

ACF financed their 850 at a very reasonable 35% APR

Tried Pigeon English in Italian auto factors. Failed. Thanked the motoring Gods, these guys were along for the ride

Join Car Dealer Club by visiting CarDealerClub.com Members get free legal advice worth £199 for a £34.99 subscription

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IGNITION.

Editorial Director James Baggott james@blackballmedia.co.uk Twitter: @CarDealerEd STAFF WRITER James Batchelor james.batchelor@blackballmedia.co.uk Twitter: @jrrbatchelor Sub Editor Dave Brown dave@blackballmedia.co.uk Twitter: @CarDealerDave ADVERTISING Manager Duncan Chappell duncan@blackballmedia.co.uk Twitter: @CarDealerAds Advertising EXECUTIVE Jade Simmonds jade@blackballmedia.co.uk Twitter: @CarDealerJade

Contributors Mike Askew, Mike Jones, Big Mike, Alex Goy, James Litton, Tim Naylor, Tim Smith, Martin Hill, Tim Heavisides, Richard Hoggart and Jonathan Such

Subscriptions £34.99 per year (UK) £59.99 (EU) £79.99 (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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won’t profess to be an Welcome. Ieconomic genius, but I do like

to keep an eye on the bigger picture and try to work out what it means for the world of motoring. Euro zone debt crisis, soaring household bills and gloomy GDP figures all add up to one very worrying factor for the car industry – plummeting consumer confidence. When the public is worried there’s another credit crunch on the horizon, or that we’re about to fall down the hump of a double-dip recession, the last place they want to be heading is your showroom to shell out on a new car. Take a peek at the monthly car sales figures and you’ll see that anecdotal evidence is ringing true. It’s hard out there. The 61-plate in September saw sales fall nearly one per cent, while October managed to register a slight, albeit pleasing, rise of 2.6 per cent. Despite this, the SMMT and RMIF both predict we’re in for a long period of flat sales and the market is going to be extremely tough. With this in mind it’s worth taking steps to cut your costs as much as possible and focus on every sales opportunity that presents itself now. To give you some tips on where cuts can be made we’ve produced The Guide to Saving Money. It details a whole host of firms who can help and starts on p62. In the first instalment of a new regular feature in Car Dealer, we also look at ways you can weather the storm with expert analysis and advice in our Top Tips section. Read their advice on p78. And that’s not the only new feature we’ve introduced this month. On p25 you’ll find That Was The Month, a digest of the last four weeks of motoring news in bite-sized chunks. If you like what you see and want a more regular fix we publish its sister column, That Was The Week, on our website every Friday.

difference it makes – and it’s huge. That’s why we’re always trying to raise as much money as we can for the charity, whether that’s by trading up from nothing to a Porsche, or leading a team of bangers halfway across Europe. In this issue we report on the latter. Our Bangers4BEN rally took place in October and was the most popular ever with 31 teams taking part. It was also our most eventful trip and the first time we didn’t manage to make it to our destination under our own steam. Read about how members of the motor trade joined forces to raise a whopping amount of money on p42. If you want to join the rally next year get in touch now – we’ll make sure those that do get first dibs on booking places. ARE YOU IN? Car Dealer Club has been very successful since its launch this year. Hundreds of dealers have joined and are now benefiting from free legal advice from our team, headed up by columnist Lucy Bonham Carter (p28). Members also get access to discounts from a host of motor trade suppliers. This month we’ve launched a new website at CarDealerClub.com, which explains the benefits, and we’ve also taken on a new member of staff – Natasha Smith – to administer things. So if you’ve got a query, give her a shout on our normal number. And finally, we’ve recently made our popular iPhone App free to download. You’ll get daily updates from the motor trade direct to your phone – search for ‘Car Dealer Magazine’ in the iTunes store to get it. Some 556 of you downloaded it last month alone! Enjoy the issue.

QUIDS IN The work motor industry charity BEN does for our motor trade colleagues is very important to us. We’ve seen the

James Baggott, Editor

CarDealerClub.com Free iPhone App Check out our new website for members

556 downloads in October alone! CarDealerMag.co.uk | 03

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INSIDE.

Bangers4ben 31 teams take to Europe’s roads in bangers in aid of BEN

ISSUE 45 I DECEMBER 2011

dashboard

Green awards

Red Dwarf star’s backing

Money saving

How to weather the storm

Nissan GT-R

Godzilla is now even faster

‘‘

Supermarket Carcraft rapped by OFT

Oil’s vital role at McLaren

OFT raps Carcraft’s knuckles

MG looking for more dealers

Motability changes

Mobil 1’s winning formula

Ewards: Our latest entrant

NEW: That Was The Month

Around the World

Helpdesk: Ask Lucy

Finance

Big Mike

forecourt

Carcraft gave some customers a misleading impression.

Formula WON

Buyer sought for Southgate

Nissan GT-R

Vauxhall Astra GTC

Audi Q3

Nissan Qashqai 1.6dCi

Hyundai i20 Blue

VW Amarok

40 41

Infiniti FX

features Bangers4BEN

Green Apple Awards

The Guide To Saving Money

Focus On: Traka

DATA FILE NEW: Top Tips to weather storm 78

a month in A picture...

Seasickness. It comes to us all. Unfortunately it came to Batch whilst eating a baguette, on a ferry, dressed as a sailor. Why was he dressed like that? Well, our Bangers4BEN steed this year was an homage to the killed-before-its-time HMS Ark Royal. Sea legs were luckily not required for the rest of journey. An AA membership, however, was.

Right Click

Net Gains

Auctions

The Statistics with Motors.co.uk

Suppliers Guide with Alex Goy

Trader Directory with James Litton 92 Shares

Time Is Money

CarDealerMag.co.uk | 05

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

Motability got you talking... bit.ly/motabilitychanges Whilst welcoming the tightening up of the scheme, I have reservations. They seem to assume that disabled people should not drive an expensive car, but surely if they have the means to pay a large deposit, it is discrimination for them not to be able to drive what they like. Also, the five-mile rule could be difficult, as with an ageing population, lots of disabled people are driven around by grownup offspring, and people no longer live close by their relatives. Ron Gwilliams, via CarDealerMag.co.uk This is one of the most unbelievable knee-jerk reactions in history by an organisation that has fought tooth and nail for disabled drivers to drive what THEY want (if they can afford the advance payment). The trustees should be thoroughly ashamed that they are effectively saying disabled drivers shouldn’t be seen to be enjoying themselves in ‘nice’ cars. Question is: What are we going to do about it? I suggest we go to a Motability board meeting and make our case. Who’s with me? Persuader, via CarDealerMag.co.uk Totally agree Persuader. Let’s turn up at the board meeting. You can drive! Simonsays, via CarDealerMag.co.uk

AutoPlanet goes bust

bit.ly/AutoplanetBust I have just read your report on AutoPlanet and thought I’d share with you the details of being one of their customers. I recently purchased a BMW X3 for my family to use. I have owned it for four months and it has been in the garage for about two. It’s back in there currently and I’m sitting on a bill of £1,500 and the car is still not working correctly.

twitter comments

What women want

Guest blogger Jackie Bond wrote about what women want from car dealers. The post generated a lot of feedback. Read it by typing bit.ly/womenwantdealers into a browser. Interesting blog. Shows that anyone wants to be treated by a car dealer as a human being (with a wallet), not a complete idiot. Via @HFShakespeare The dealers to go for are the enthusiastic ones, I look for ones recommended by owner clubs. Via @Jon404 Absolutely! Nothing worse than a condescending prat who tells you you’ll never be able to afford the Skyline you’re looking at. Via @lynntulloch It’s a shame that women aren’t treated equally on It would appear that I have been sold a faulty car by AutoPlanet and I was intending to take them to court if they refused to help with the repair bill. I now have a £9,000 credit agreement, a car that is unusable and unsellable and a repair bill of £1,500 which is increasing by the day. I will be taking AutoPlanet to court and contacting Watchdog. Gavin, via CarDealerMag.co.uk Gavin, you pay yer money and you take yer choice! You chose the cheap option of buying a second-hand car. You did not buy a brand new

forecourts, surely it’s time sales staff recognise it’s 2011 not 1955. Via @A1GOY My other half went on her own to buy a Saab convertible - completely ignored at dealership and bought a 330i convertible instead. Via @Steve_Carman Amend point one to ‘don’t ignore the second person if there is one’ and the principles apply just as solidly to ANY customer... Via @torquespeak car. You bought a car that at the time of purchase did not have any issues. The problems that you encountered happened after you bought the car home, right? Why are you blaming people for you apparently buying a ‘lemon’? Just because a car starts to have reliability faults, it is not the seller’s fault for you buying a second-hand vehicle.  If you read your warranty booklet which I doubt very much that you did, you would have read of what is and is not covered. You are a victim of circumstance and have NOT been victimised by any person or company. David Drury, via CarDealerMag.co.uk

MY CONFESSION

What a lock-up cock-up! I GOT a job as a trainee salesman at a large BMW dealership. My mate Tony managed to get me an interview and put in a good word for me. I’ve known him for years and was grateful for the opportunity... to spend my working days mucking about with nice beemers! Anyway, I’d been there about two months and already had my own set of keys to the showroom, a company phone and the reputation of being a cheeky bugger. All in all, things were going well for me. One thing I hated though was doing a ‘late’. Manning the phones ’till seven at night, then locking up once a week, was a drag. One summer night,

I was on a late and Tony was on a test drive ’til late too. We decided to meet in the pub after and treat ourselves to a cold one. The clock hit 7pm, and I was out of there. Tony wasn’t back yet, so I assumed I’d meet him at the pub later. I was at the pub, sipping beer when I got a text from Tony. ‘You didn’t lock up, you are in serious trouble.’ I’d forgotten to lock up. ‘So what! Just lock it up yourself then, no big deal is it, I’m already half way through my first pint!’ My phone went again. ‘I don’t think you realise the seriousness of this. There is well over £200,000 worth of cars in here, anything could’ve happened.

‘I’m NOT happy.’ So I replied, ‘Yeah, yeah. I’d have just blamed you ’cos you were there after me LOL. Now who is in trouble? Eh?’ This went on for a few texts, with me basically telling Tony that he was in trouble, not me... ‘You do know who you are talking to don’t you?’ said Tony eventually. ‘Der, yeah, Tony. I’m not as thick as you, ha ha.’ I replied. As I put my phone down, I realised it was my work phone that I was using. A cold sweat flooded my forehead. The only ‘Tony’ in that phone was Tony Stevens – the dealer principal... so it really was me in trouble. DR, South Wales CarDealerMag.co.uk | 07

dashboard.

Alan Day Volkswagen raises £4,000 for charity bit.ly/AlanDay4k

Buyer search goes on Struggling Southgate group’s future uncertain

ttempts to find a buyer for the stricken dealer group Southgate were continuing as Car Dealer went to press. At the time of publication, administrators revealed that the group – which operates Peugeot, Mitsubishi and Subaru dealerships across Hampshire and Dorset – would go into administration on November 11, after a possible buy-out failed. ‘We have been actively looking for a buyer,’ Julie Palmer of administrators Begbies Traynor told us, ‘but so far no-one has come forward. We expect the business to go into administration on November 11, and then a buyer to come forward and purchase the business.’ Palmer said Begbies Traynor expect a buyer to acquire the business and for the franchises to begin operating again later in November. She was confident a buyer would be found. In the meantime 111 employees will be made redundant. Car Dealer broke the news on our website

08 | CarDealerMag.co.uk

that Southgate was in trouble on November 3 after discovering that the company’s Mitsubishi outlets in Andover, Romsey, Poole and Bridport, plus a Subaru and a Peugeot site in Blandford, had closed. However, the group’s Peugeot sites in Southampton, Winchester and Andover were still operating while a buyer was found. A Peugeot spokesman told us: ‘There has been some healthy interest in acquiring the Peugeot sites, but discussions are ongoing.’ A Mitsubishi press release also confirmed that the Japanese firm is looking for a new partner: ‘We are now working with customers who have been affected by this unfortunate situation and are also searching for new representation across all four open points.’

CHARITY

Grateful BEN thanks Car Dealer for its efforts BEN has thanked Car Dealer for its fundraising efforts – and congratulated the magazine on finally buying a Porsche 911. The challenge, which saw us trade up from £0 to a Porsche 911, came to a conclusion in last month’s issue, and has led BEN’s chief executive to thank the team for its charitable work. As well as raising money for BEN with the Porsche challenge, Car Dealer has helped boost the charity’s coffers to the tune of £25,000 with its annual Bangers4BEN rally. David Main, BEN chief executive, said: ‘The team at Car Dealer Magazine has, from the day they launched, championed the cause of BEN. They have set in motion many crazy fundraisers that deliver much-needed funds and do it in a way that creates attention and improves awareness. ‘This, their latest endeavour, has inspired many in our industry to get involved and spread the message. It has also generated income that will help to improve life for a number of automotive people.’ Bangers4BEN, pages 42-56

No better recommendation than word of mouth Satisfied customers? Shout about it. Download and display your real-time ratings. www.motorcodes.co.uk

Christmas is coming... Have you wrapped up your Aftersales?

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Autotrade-mail service is a hit with customers bit.ly/transportservice

Carcraft’s knuckles rapped after probe by trade watchdogs T

There has been concern over selling practices at Carcraft Cavendish Elithorn, senior director of the OFT’s goods and consumer group, added: ‘Carcraft promised customers that it aimed to help them ‘‘find the perfect car with confidence’’, but we don’t think its practices ensured that it always lived up to expectations or met its legal obligations. We welcome Carcraft’s undertakings which should ensure customers are treated fairly. ‘The industry should take note of our action against Carcraft as it shows that dealers will face enforcement action where their practices cause serious problems for consumers.’ Consultations are currently taking place within the industry about a voluntary code of practice. Motor Codes director Chris Mason believes the Carcraft case highlights the need for such an initiative. He said: ‘There’s an obvious need to provide consumers with clear guidelines, advice and information on customer service level expectations when buying used cars. We’re happy to work with the OFT on campaigns that help the consumer find responsible businesses.’

Thousands of complaints over faulty cars THE Office of Fair Trading-managed Consumer Direct has published new statistics revealing it has received complaints from more than 56,000 people in the year to date. More than 70 per cent of the complaints concerned faulty used cars, more than 13 per cent were about misleading claims or omissions by the seller, and nearly seven per cent were about substandard service. Meanwhile an OFT study published last year found that consumers were being left

warranty wonders

Why would any dealer try to intimidate customers?

OFT believed firm did not always meet legal obligations he Office of Fair Trading has taken enforcement action against car supermarket Carcraft over the way it sells cars. The OFT was concerned about the group’s practices when selling vehicles, finance and after-sale guarantees. Carcraft currently operates 11 car supermarkets across England and Wales. Following its investigation, the OFT said Carcraft was not always properly carrying out pre-sale inspections, as it had advertised. Customers often complained vehicles suffered problems shortly after purchase. They believed the firm did not always meet its legal obligations to repair or replace cars when those that were sold were not of satisfactory quality either. The OFT statement said: ‘Carcraft did not make clear to some customers the terms of motor finance, such as the level of repayments or that they were signing more than one finance agreement. ‘It gave some customers a misleading impression about the scope of the after-sale vehicle guarantee, or that the guarantee was free when in fact it was being charged for and allowed some customers to drive vehicles off its premises without valid road tax.’ The OFT said Carcraft fully co-operated with the investigation and said it believed ‘its business practices complied with the law’. Carcraft has now made changes and given undertakings about its future conduct, which address the Office of Fair Trading’s concerns.

Heavisides

out of pocket by an average of £425. ‘We continue to receive a high number of complaints which are often due to some traders refusing to deal with legitimate complaints or provide appropriate compensation,’ said Consumer Direct’s Michelle Shambrook. ‘We want to help people understand their rights when buying a used car from a dealer. Dealers who fail to treat customers fairly or sell cars that are defective could face enforcement action.’

couple of research reports have been published recently that looked into the car-buying and servicing processes. Female motorists who were involved in both of them said they were more likely to be ripped off by dealers because of their gender. Both research projects were very well-grounded and extensively surveyed but I honestly believe that the real issue is that some of the perceptions held about our industry are seriously outdated and don’t actually relate to reality out there in dealerships up and down the country. Consider the evidence. The financial investment needed to run a dealership, regardless of size, is enormous compared to most other industries – the capital tied up in stock, the investment in buildings and branding, rates, taxes, wages… and the returns available on that investment are usually pretty slim, so it would be a fairly short-term strategy to take some of your customers for a ride price-wise when selling or servicing a car. I’m not saying it never happens, but I can’t believe that any of the buying population should feel intimidated by either process. I think a lot of these perceptions come down to stereotyping by the public; they believe they might be ripped off so feel they could have been regardless of the actual outcome. But at the same time, the car industry is just that – an industry – and making a return is the reason we’re all here. Clearly the industry needs to help change those perceptions and I think we’ve already done a pretty fine job. The sales processes are usually much more transparent than they were even a few years ago and through qualification when the car is sold, customers can be offered extended warranty and servicing packages to help smooth the ownership experience into the longer-term. What better way to remove the perception of being ripped off than by taking out the need to pay for maintenance later on? There’s probably more to be done but I’d like to think that in our market, it’s the perceptions that need to catch up with the reality.

‘The financial investment needed to run a dealership, regardless of size, is enormous. ’

Who is Tim Heavisides?

Heavisides is CEO of Car Care Plan, the UK’s leading provider of motor warranty and GAP products. CarDealerMag.co.uk | 11

DASHBOARD.

Ferrari’s record year set to continue bit.ly/Ferrarirecord

Winn Assist Revealed: MG tell us accident management

Enhance your brand and help your customers too

his month we are going to focus on how you can ensure your chosen accident management company produces the promised revenue, enhances your brand and gives great service to your customers. n You must ensure that your customer realises the Accident Management Service is an integral part of your service and will benefit them. n Train staff so they know what to do and make sure they are aware of the benefits for everyone in the organisation. n Sales staff need to know and understand: That if the AMC is effective, customers will be in the market for a replacement like-for-like branded model and are more likely to purchase a new vehicle. The AMC always seeks retail value if a vehicle is written off. This gives the sales staff a selling opportunity. The AMC always pursues diminution if the vehicle is less than three years old. This provides a sales opportunity where a vehicle has been repaired. Likewise, the bodyshop staff need to be clear that it is worth making the enquiries with potential customers to identify non-fault work, as the much higher credit repair rates make it worthwhile. (Some bodyshops/dealerships have found it difficult to get their estimators/reception staff into this way of thinking and they have a sales person in this role.) n Keep it simple: - Have short script. - Have a direct button link to the Accident Management Service, so one push of a button puts the call straight through to the correct person. n Management buy-in is essential. Staff are reluctant to see this as core unless they are told it is core by management. Once the service works effectively, fine-tuning can occur. Good AMCs can provide legal assistance policies to fleets helping to tie in the repair and purchase work for you. They can assist in joint marketing and sales visits if you have fleet customers you wish to tie in. For more information please speak to the Winn Assist sales team on 0191 276 9865.

‘Train staff what to do and make sure they know the benefits for everyone.’

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. 14 | CarDealerMag.co.uk

top 10 open points

...and other car makers list their target areas as well

G has revealed to Car Dealer the 10 most important towns and cities it wants to find new dealers for. The UK car manufacturer, which was relaunched in 2008 with the backing of Shanghai Automotive Industry Corporation, wants to establish showrooms in the following eight locations in England: Birmingham, Derby, Leeds, Liverpool, Nottingham, Northampton, Swindon and South London. The firm, which has recently launched a new range of models that have been designed and engineered at its 69-acre site in Longbridge, Birmingham, also wants to establish outlets in Glasgow and Edinburgh. MG’s list of potential dealership locations also includes more than 20 medium-priority locations, including Brighton, Exeter and Guildford in the

south of England, and Blackpool, Burnley and Carlisle further north. And at the bottom of the list are six low-priority spots, including in England, Barnstaple; in Wales, Swansea; and in Scotland, Inverness. MG recently opened a new sales centre onsite at the famous ‘Elephant House’ at Longbridge. Customers are able to testdrive vehicles from the new MG6 range there and can also buy vehicles from the home of MG.

OTHER MANUFACTURERS CAR Dealer approached all manufacturers represented in the UK and asked them if they’d be willing to share information about their open points. The other automakers who took us up on our offer are listed below: MERCEDES, DAIMLER and RENAULT said they had no open points at the moment. Vacancies: Seat, above, and Renault CITROEN reported that they had opportunities in the following locations: Wolverhampton, Solihull, Guildford, Hemel Hempstead, Macclesfield, Stourbridge and in various locations across London. LOTUS told us their open point locations were Belfast, Bristol, central London, Reading And if you’re interested in and Newcastle. representing MITSUBISHI, you’ll need SEAT were looking to gain a presence to be based in one of the following in Wimbledon, south-west London and locations: Sutton Coldfield, Romford, Epsom in Surrey; Chingford and Barnet, Erith, Sunderland, Solihull, Watford, north-east London; Maidstone and York, Wigan, Southend or Bishop’s Ashford in Kent; Guildford in Surrey; Stortford. Bedford, Kings Lynn and Solihull.

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

DASHBOARD.

Hoggart

point of sale

At last, could there be a recovery on the horizon?

f anyone can still remember early 2008, there was a nervousness around the industry that was eventually justified with the collapse of funding for several companies who were at the heart of the motor finance industry. That period has been well documented and there is no need to reopen old wounds. What is more interesting, in my opinion, is to remember that just prior to this collapse, we had an absolutely thriving non-prime motor industry that was dominated by the broker community, who acted as the perfect sales vessel for a number of players, such as British Credit Trust, Welcome and Park Motor Finance to name but three. Products from lenders such as these were enabling a huge volume of car sales to the creditimpaired customer. The brokers had fine-tuned their delivery to make the procedures painless and customers had a choice of product despite their frailties. As we know, this disappeared overnight and left a gaping £1bn funding hole that meant dealers couldn’t sell the cars and the eager punters were left declined and disappointed. Many questioned whether non-prime had been a brief flash in the pan and wondered if we would ever be able to work in this area of our sector with anything like the positive approach we had once been able to take. Over three years on, it is a good time to review the landscape. And if you stare hard enough, you just might like the look of the horizon. Now let’s not get too excited. The halcyon days are behind us, however, what I am certainly beginning to see is the shape of a stout, although slightly limited, recovery. Non-prime is about options. The challenges are many, not just bad credit. There are deposit and LTV issues, affordability considerations and also the actual cost of the loan to consider. The ability to counter each of these challenges and often in one deal is the key to creating dealer confidence in non-prime. Our product range can now handle this. We are really looking forward to demonstrating this to our dealers and creating a new sustainable approach to non-prime sales.

‘The challenges are many, not just bad credit.’

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. 16 | CarDealerMag.co.uk

New manager for Mercedes-Benz Southampton bit.ly/MercedesManager

Major changes made to Motability in bid to crack down on abuse ‘Clearer parameters’ introduced after review of scheme

raft of changes has been made to the charity Motability scheme in a bid to halt some consumers abusing the offer. In a statement, the chairman of Motability Lord Sterling said: ‘Despite meeting the mobility needs of disabled people for over 33 years, it is very important that we are not complacent. ‘We must continuously strive for excellence by examining and refining all aspects of the scheme. ‘During 2011, we have reviewed a number of issues including the range of cars available on the scheme and the clarity of our policies on how the cars are used and by whom.’ The changes specifically relate to the recommended retail price of Motability cars, how the cars will be used and by whom. The range of cars through the scheme will be ‘rationalised’ with only cars offered with an advance payment of £2k or less – approximating the RRP price limit of £25k. The change will rectify the current situation of more than 50 per cent of cars offered having advance payments above £2k, and will be implemented in December 2011. ‘We will, of course, ensure that customers whose disability-related needs require a car above this level can be accommodated,’ said Lord Sterling.

Motability: ‘We need to avoid complacency’ Another key change will be how the Motability car may be used and by whom. The scheme will now only accept nominated drivers who live within five miles of the customer in order to reduce the risk of the car being used for purposes other than by the disabled person. ‘The principle of the scheme remains as it always has been – that cars must be used for the benefit of the disabled person. However, we have identified a need to refine our processes and communications around this principle, with clearer parameters so that customers can use the car appropriately and with confidence,’ added Lord Sterling. Age of nominated drivers will also change. Citing the cost of motor insurance rising, as of January 2012, Motability will no longer accept nominated drivers under the age of 21 on the scheme ‘unless they reside with the disabled customer’. The changes will also place new restrictions on the way drivers under the age of 25 can use the scheme.

Shake-up could see prices reduced – Nissan MD NISSAN MD Jim Wright believes the changes to the Motability scheme will see car firms reducing some list prices. Writing on Nissan Insider, a website for the firm’s dealers, Wright reveals he’s of the view that because Motability is so important to the motor trade, car manufacturers will be forced to change list prices of certain models to allow them to be eligible for scheme users. ‘Those changes will mean a big shakeup in the way the motor industry’s biggest

customer buys cars,’ said Wright. ‘With 575,000 cars on its books, Motability is the only single customer which has the ability to change the way the entire industry sells cars. My crystal ball sees a number of manufacturers re-speccing models to make entry-level models priced at £24,999.99.’ Wright is confident that the Japanese brand is well-placed to make the most of the changes. Page 35, Handbook: Nissan GT-R

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Winning formula

It’s not the most glamorous element of Formula 1, but lubrication plays a vital role in the quest for Grand Prix glory. James Baggott travelled to the US to find out more

hen Lewis Hamilton crossed the finishing line in Brazil to seal his first F1 World Championship in 2008, there was one unsung hero who played a vital role in his success. At the back of the pit garage, nestled by the coffee machine, was an engineer focussed on one part of the engine the McLaren team could improve as much as it liked – the lubricants oiling the V8 engine’s internals. The demands on technology are never greater than in the pinnacle of motorsport where shaving a fraction of a second off lap times can be the difference between winning a place on the podium or not. And when you’re at the forefront of motoring technology, engineering the lubricants inside the car is just as important as designing a new wing for downforce. Mobil 1, the performance oil arm of the world’s biggest company, ExxonMobil, has been helping Hamilton and his teammate Jenson Button achieve faster and faster lap times every season with its golden liquid. The petroleum giant’s team of motorsport engineers works directly alongside the McLaren engineers to produce oils and greases which help the Formula 1 cars perform to their very best. But how can an oil help shave tenths off lap times? Well, in quite a number of ways, explains Bruce Crawley, Mobil 1’s motorsport technology manager. ‘At every grand prix our team works alongside the McLaren team to ensure our products are performing as they’d expect,’ he says. ‘Oils can be engineered to help performance on a number of levels. ‘We’ve looked at the make-up of the oil to try to help reduce the mass carried around by the cars. And we’ve looked at creating a formula that enables the engines to run at higher temperatures which in turn means fewer ducts are needed for cooling which in turn improves aerodynamics. ‘Mobil 1 oils and greases play a vital role in the McLaren team’s success and the drivers know that. We work closely with Lewis and Jenson to explain how our products are helping them win and they give us direct feedback.’ The lessons learnt on the F1 circuits around the globe have a direct effect on the products you sell in your showrooms too. Car Dealer was recently invited to Paulsborough, Pennsylvania, for an exclusive tour of the Mobil 1 research and development facility. We were the only UK publication invited, and it was here where the link between the world’s most demanding motorsport and the drums in 18 | CarDealerMag.co.uk

GREEN TECH

Electric shock? The advent of electric cars might be good news for the environment, but surely it can’t be positive for fossil fuel firms like ExxonMobil? We wanted to know if the oil giant felt threatened by what would be a diminishing need for its products. ‘We don’t feel electric cars are the future,’ said Doug Deckman, a researcher for the firm. ‘Our studies suggest that up to 2030, the majority of the cars on the road will be powered by the internal combustion engine. ‘That’s not to say alternative powertrains

will not become popular, but there will still be a need for lubricants in these products, bearings will need grease and there are moving parts that need oil. We will work to develop these. We don’t see them as a threat, more as an opportunity.’

Franchised workshops losing out to independents, says Castrol bit.ly/CastrolSurvey

MOTORSPORT

Oil: The forgotten star of the race track?

your workshops was made clear. ExxonMobil invests an incredible $1bn a year in developing new oil formulas and the sprawling American facility is spread over countless buildings with a refinery as a backdrop. The firm’s constant quest for improvement is explained as I’m given a tour of the analytical labs, blending facilities and rigorous testing programmes housed at the site. PERFORMANCE So what’s so special about Mobil 1? It’s a question many dealers are asked when customers demand justification for paying a premium over rival products and one that not all can easily answer. ‘Performance,’ explains Doug Deckman, the

firm’s senior research associate for passenger vehicles. ‘That and protection for the engine. Our slogan is “keeps engines running as new” and that’s an important point to stress to customers.’ Mobil 1 has been around in one formula or another since 1973. The first batch was created to protect diesel engines in trucks when they started travelling to the Arctic Circle. This ‘synthetic’ blend flowed around engines even in sub-zero conditions, protecting the mechanicals from wear and tear in the bitter conditions. A synthetic oil is made from crude, dug up from the ground, but it has to be then pulled apart and improved on a molecular level to be given the synthetic label. And it is the scientists in ExxonMobil’s labs who

SO how can an engine oil help McLaren’s drivers on to the podium? Bruce Crawley, the head of Mobil 1’s motorsport programme, gave us the full explanation. ‘Regulation changes which saw refuelling banned made our job even more important. Focus has shifted to fuel efficiency and oil can play an important part in that. ‘Our oils have helped McLaren run the race car’s engine at higher temperatures which meant they could reduce the size of the radiators which in turn reduced drag. ‘We’ve also developed gearbox oil which dissipates heat better which has required less cooling and ducts and has also reduced drag. ‘We are always looking to reduce the density of the oil so McLaren can reduce the mass they carry around. All these factors improve lap times and efficiency. If we can improve fuel efficiency with oil, less fuel needs to be carried around making the cars lighter and more competitive.’ Crawley and his team of 10 engineers travel the world working at the cutting edge of oil development. His lubricants play a vital role in reducing friction in the Formula 1 cars and the pay-off is more power. With engines now frozen for the season, lubricants are one of the only components where improvements can be made, making Crawley’s crew a vital part of the McLaren weaponry. ‘With the engines sealed, the team’s ability to get more out of them is restricted,’ added Crawley. ‘Lubricants are still a free area so we are always working on ways to help them get more power. We also work hard to ensure no power is lost over the life of the engine, so we keep a close eye on power degradation.’ New Mobil 1 formulas are developed for every season. Typically it takes six months for an oil to reach the race track from the laboratory, but the firm’s multi-million-pound investment in the sport ensures a constant quest for improvement. ‘Jenson and Lewis realise the importance of the work we do,’ added Crawley. ‘It helps that our mobile lab is by the coffee machine in the garage so they have to walk past us on the way there!’ CarDealerMag.co.uk | 19

DASHBOARD.

are largely responsible for the rapid advances lubricants are making. Now around 40 makes and models – including Mercedes and Porsche – are factory filled with Mobil 1 as the makers trust the lubricants’ abilities to protect their engines. To prove just how well they work, Mobil 1 ran an E46 BMW 325i 24 hours a day, seven days a week for an incredible four years clocking up one million miles as an ultimate test for its products. At the end of the test the engine was stripped bare and no excessive wear was discovered. Mobil 1 doesn’t rest on its laurels though. Millions of dollars are spent every month testing future blends in the field, such as in Las Vegas taxis, or in its laboratories where fleets of cars are run on rolling roads for thousands of miles every week. In the labs in the Paulsborough facility, countless tests are carried out. One machine we saw heats samples to 10,000 kelvin (the sun is 6,000 kelvin). It’s at this temperature where the formula is broken down to mere atoms and electrons and these can be analysed to assess the lubricant’s molecular make-up. The lab technicians receive new blends every day from the scientists creating formulas on site. We got the chance to ‘mix’ a few of the base compounds used in Mobil 1 ourselves – there are up to 20 ingredients – and it soon became clear that the yellow liquid has come a long way from the black goo dug up from the ground. It’s obvious that a huge amount of development goes into Mobil 1’s products on an ongoing basis, but getting this across to customers in your showroom can be hard, especially when price is probably the only thing they’re interested in. ‘Dealers need to explain the importance of motor oil to customers,’ adds Deckman. ‘If they know that it helps F1 engines last longer and that it helps clean their engine and makes it last longer, they might start to see the benefits of filling their cars with it. ‘Our blends are also helping to improve fuel economy, something that’s very important at the moment, and they reduce oil consumption too. We’re focussed on keeping engines running like new for the duration of their life and our tests prove that they work.’ What he’s trying to say is that by explaining to customers that spending a little more on decent oil can make their engines more reliable, less prone to failure due to build-up of deposits and improve their fuel economy, they will have something they can relate to. So next time you’re staring at those Mobil 1 top-up packs on the shelves in your workshop, it’s worth remembering the work that goes into creating them. Not only does it help the world’s fastest drivers in the world’s fastest cars circumnavigate the greatest race tracks, but it also plays a vital role in ensuring every car you sell lasts that little bit longer. [CD] 20 | CarDealerMag.co.uk

The oil blend is formulated in a lab (top); tests on rolling roads are completed and engines taken apart

SCARE TACTICS?

Oil will be around for a while yet, says Mobil 1 It’s the news all petrolheads want to hear – oil doesn’t look like it will run out any time soon. During our tour, a spokesman for ExxonMobil told us fears the black stuff would run out soon were unfounded. ‘In 1994 we were told the oil reserves would run out in 20 years,’ said the spokesman for the petroleum giant. ‘But advances in technology and new discoveries now put estimates at oil reserves lasting for another 100 years.’ He explained that ExxonMobil’s technical advances have meant reserves of oil that were previously impossible to tap, are now accessible. ‘We can now drill horizontally for up to 10 miles,’ he explained. ‘That means we can drill down and then along giving us access to reserves we could never have imagined accessing 15 years ago. ‘We have also factored in the advances in hybrid and electric technology which will mean the demands on oil reserves are slightly less as we go on. The estimates of oil reserves lasting have quadrupled since 1994 – just imagine what technology advances could extend these predictions to in the future.’ The admission that oil reserves may last at least another century is an interesting one, especially as many green vehicles and alternative fuels are marketed on the basis that fossil fuels won’t be around forever. While ExxonMobil isn’t claiming they’ll last forever, they are predicting it’s a problem that’s a long way off yet.

EWARDS 2011.

THE JUDGES Autotorq.com

Autotorq

hy hy

This year I will be looking for dealers who are ready to satisfy customers’ needs when they go online. Very few businesses are able to do this – and that is especially true in our industry – so a good web presence will be one which supplies consumers with information to allow them to make better decisions.

Stewart Niblock Gforces.co.uk

GForces

hy hy

I will be looking for evidence of a website that makes the consumer journey as effortless, rich and relevant as possible. Well-displayed stock and good offers and relevant content are a starting point but I want to experience a cohesive approach between the web and showroom.

Tim Smith Codeweavers.net

Codeweavers

hy hy

I am looking for sites given the love and attention that demonstrate that they sit at the centre of the dealer’s marketing strategy. I would like to see evidence of on-going reviews, checks and improvements to the site and that all features work correctly and are presented to their best effect.

Roland Schaack 22 | CarDealerMag.co.uk

Clean and functional, this entry for our 2011 Ewards has already caught the judges’ eye. James Batchelor reports.

n his entry for Ewards 2011, Jason Harwood sums up what frequently occurs every year in our search to discover and celebrate the best dealer websites. ‘We think that as a small independent dealer our website has extra points that a lot of dealers’ websites do not offer,’ says Harwood. Small independents doing battle against larger

CarCarePlan.com

Car Care Plan

hy hy

I’m really looking forward to reviewing this year’s Car Dealer Ewards entrants. If the variety and quality of the submissions is anything like last year then we’re going to be awarding some excellent websites. Personally I’ll be looking for attractive and engaging websites that are innovative whilst retaining a high degree of usability.

Matthew Strudwick

competition is great to see, and Harwood’s own site, constructed by Digital Lane, is a good example of tools and features being used by the big boys but on an independent’s website. Its simple, clear design is something all of our judges were agreed upon. Stuart Niblock from Ewards headline sponsor Autotorq.com remarks: ‘A simple and clean website. User goals are

Webzation.COM

Webzation

hy hy

As a business that continues to innovate, we want to see a like-minded approach with the entrants. Use of more engaging content and functionality will be paramount to fulfill the requirements of a rapidlyevolving consumer market. The victor will need to demonstrate enhancements beyond last year’s winners.

James Tew

blueskyinteractive.co.uk

Bluesky

hy hy

I am going to be looking for websites and digital innovations that don’t just look flash but also deliver real results and functionality. We see it as crucial that technology used within a website works both for the customer and the website owner to help generate long-standing relationships.

Alan Crane

CarDealer. Ewards

2011

I n a s s o c i at i o n w i t h

autotorq.com

clearly visible and valuable content and functionality is on the whole above the fold. Good used car imagery and video is essential for any independent business and this is impressive on this site. Well done for verifying and personalising Google Places.’ Clear website design also appeals to Tim Smith of GForces, who says the website ‘boasts simplicity with clear calls to action, ease of navigation and large visuals making it aesthetically pleasing.’ Harwood says he has tried hard to make sure his site boasts video content of all of his stock – something ‘which shows real attention to detail. It’s clean, functional and encouraging to see they’ve integrated their eBay shop,’ adds Smith. Roland Schaack of Codeweavers also liked the website’s design, adding: ‘The Harwood site looks basic and it is a relatively simple website but it really works.’

‘It’s personal and friendly,’ adds Car Care Plan’s Matthew Strudwick. ‘Combined with the ‘‘Driven by Service’‘ slogan, it generates a favourable impression. Each vehicle listing has plenty of information, and the inclusion of a comprehensive ‘‘video walkaround’’ is useful feature.’ New to Ewards 2011, Experian’s Andrew Ballard liked the site’s ‘clean look’ which ‘emphasises personal service’. Meanwhile, Spidersnet offered some top tips to other dealers on how to make a good site. Ashley Hitchcock said: ‘Make sure you have ‘‘social buttons’’ next to all of your car listings so users can quickly share these pages. Also if you have a Facebook or Google+ business page or Twitter account you should ensure that you have visible links to these. ‘You do however need to make sure you keep these up-to-date with fresh content and also answer any queries quickly.’

HOW TO ENTER EWARDS 2011 To enter, you need to register your website with the following details by emailing ewards@cardealermag.co.uk. 1. Your name and position 2. Company name 3. Website address 4. Name of the agency who designed the site, or if in-house state this 5. 100 words (or more) saying what makes your site an Eward winner. Think about what you considered before building the website and the reasons for adding its functions. If you’ve entered before that

ProgressDMS.co.uk

Progress Automotive

hy hy

I will be looking for websites that strike the right balance between clean, functional design, ease of navigation and the use of the latest, innovative technology. I’ll also be looking for sites that demonstrate an understanding of today’s car buyer, and the means they have for accessing websites.

Alex Knight

doesn’t mean you can’t enter, but you will need to send us details of your website again. We will also consider nominations made by other parties and our judges will get to nominate some of their favourites too. We’ll look through all entries and shortlist 10 in each category and these will then be handed to the judges. Each judge uses their own set of criteria, with our guidelines, to mark the websites and we tot up their points to find our winners. We look forward to seeing your entry!

Autosonshow.tv

Autos On Showhy hy I’ll be looking for websites that put the forecourt at potential buyer’s fingertips. To do this a site needs to embrace innovative technology, it needs easy navigation, interactivity, strong visuals, ideally video, a relaxed design and easy-tosee specifications. It should also communicate the brand personality of the dealership.

Adam Price

Niblock

Ewards insight

Channels to choose...

wo must-have channels for an effective online presence are Google Places and a mobile version of your website. The results speak for themselves: Google Places can deliver hundreds or even thousands of visits to your website each month and it’s free. As for a mobile site, it caters for a small proportion of your overall traffic but it’s high-quality traffic. Our insights show these customers are typically very close (hours and days) from making a decision so let’s not upset them at the last hurdle. And if you run mobile paid search advertising on top of your natural position one listing then you’ll dominate the small screen on a mobile device. You will also be delighted to know you can generate lots of click-to-call enquiries from as little as 5p per call. Back to Google Places. It’s an extension of the search engine results for your business and it includes a map, driving directions and lots of other information. You can personalise it and include photos, videos, downloadable coupons and even integrate your paid search advertising. It will harvest customer reviews from around the web and some dealers fear this but there are ways to manage good and bad reviews. Your agency can advise here or there are lots of blogs to tell you how. Obviously, reviews are hugely insightful when prospects are researching your business and between the sales and service departments there are dozens of customers that are completely satisfied, so just ask them to write something!

Who is Stewart Niblock?

He is chief executive officer of Autotorq.com, one of the leading digital agencies in the UK. Find out how he can help you at autotorq.com

Spidersnet.co.uk

Spidersnet

hy hy

By now all dealers should be displaying multiple images and well written unique descriptions of their used cars. This year I’ll be looking for sites that really engage with visitors and embrace the phenomenon that is social media. I’ll be looking for dealers that have a blog attached to their website and embedded Facebook, Twitter and RSS widgets for greater engagement.

Ashley Hitchcock

Experian.co.uk

Experian

hy hy

A WEBSITE in this context is a business tool that needs to serve the needs of the business and their customers. I will be looking for websites that are clear, functional and informative. A logical user journey and the ability to provide an ‘on-line’ representation of the business and their propositions and services is vital.

Andrew Ballard CarDealerMag.co.uk| 23

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That Was The Week – our roundups are posted online on Fridays CarDealerMagazine.co.uk

The month, digested We keep an eye on the motoring must-knows so you don’t have to. Here’s what’s been happening in the auto industry this month

October 10-14 HPI warned customers about a new scam in Scotland where non-existent vehicles are offered for sale using suspect documentation. The VRA declared the used car market in September and October was ‘quite strong’ adding values reflected retail demand. September saw Kia sell 217,736 cars globally, returning 16.3 per cent year-on-year growth. Top markets were China, North America and Europe. Hyundai announced prices for its Veloster coupe. The range starts at £17,995. Ssangyong is continuing to grow with the appointment of new dealers in Peterborough, Breaston and Shrewsbury. Motor finance recorded its highest ever share of the private retail market for four years, said the FLA (full story, p30). Seat announced its ‘Pay No VAT’ offer was back, meaning customers can get into an Ibiza Copa for £10,699 and a Leon Copa for £14,909. Czech brand Skoda started production of its VW Up-based Citigo small car. It’ll have two petrol engines and arrives next summer.

Clockwise: Veloster; Stuart Kerr; Jeremy Hicks; Kangoo ZE

October 17-21 Renault has announced its electric Kangoo Van ZE will cost from £16,990. Customers will need to take out a subscription for the batteries. It’s on sale now. Vauxhall is set to launch a new van. Its Combo is based on the Fiat Doblo and is priced from £14,703. The British firm also declared it will not produce a Ford ST-rivalling Astra VXR estate, saying customers ‘wouldn’t like it’. Peugeot launched their Cold Weather Tyre Programme allowing customers to swap their summer tyres for winter ones, while their warm weather rubber is securely stored. Manheim Auctions found that less than five per cent of motorists were planning to buy winter tyres this year, despite the snow in 2010 (full story, p85). The Venga is the latest model to be built at Kia’s Zilina factory in Slovakia. A third shift has been introduced to help build it. Infiniti’s sixth dealership in the UK opened. Leeds is the latest location to get a taste of the luxury brand (FX tested, p41). The SMMT revealed the standard fitment of digital radio has jumped by 184 per cent in the first nine months of 2011. RMI chairman Colin Parlett called on the government for a clarification on the proposed MOT changes ‘as soon as possible’.

MOTABILITY

Story of the month

CHANGES to the Motability scheme (p16) prompted Nissan’s MD Jim Wright to predict manufacturers will change list prices to make models eligible. The changes have been made after concerns people were cheating the system, and the amendments include prices ‘rationalised’, and a clampdown on who can drive Motability cars and the ages of drivers.

October 24-28 Nissan unveiled a six-year environmental plan. By the end of 2016, it expects to be number one in zero emission motoring. JCT600 opened its new Lotus dealership in Leeds. More than 150 customers attended the event, and were treated to exclusive test drives of the new Evora S IPS. Some 59 Subaru dealers raised £20k for victims of the Japanese tsunami. The dealers took part in a national cycle relay and covered more than 3,500 miles. Audi hinted that it will produce a spiced-up version of its new Q3 model, if Range Rover does the same with the Evoque.

Ford announced prices and trims of its new Ranger pick-up. Prices start at £15,515. The UK operation of EuroTaxGlass’s Group has been renamed Glass’s. The move comes as part of a re-branding. The future of Saab looks to be safe. The Swedish car firm has been rescued by two backers – Pang Da Automobile Trade Co and Zhejiang Youngman Lotus Automobile Co. Motor Codes revealed consumers want clear, accessible advice. Of the 6,000 calls it has received this year, 93 per cent were consumers asking for advice, not registering a complaint.

October 31 – November 4 TOYOTA built its two millionth Yaris at its factory in Valenciennes, northern France. Bentley secured a £3m government grant to develop a new powertrain, safeguarding 200 jobs. Mini revealed its fabric-roofed Roadster. Prices for the basic Cooper model will start at £18,015. Former Audi chief Jeremy Hicks has been appointed MD of Jaguar Land Rover. BMW Group sales rose by nine per cent in quarter three of 2011. The 5 Series was the firm’s best-seller. Ford Retail announced the appointment of former Volvo man Stuart Kerr as CEO. [CD] CarDealerMag.co.uk | 25

dashboard.

Around the world

Inchcape plans new Volkswagen showroom bit.ly/InchcapeVW

BRAZIL

Brazilian dealers sold 280,608 vehicles in October, 7.4 per cent less than the same month a year ago and 19 per cent less than predicted. The country has a population of 190m and is a manufacturing site for Fiat, Volkswagen, General Motors, Ford and Mercedes Benz.

Dealer news from somewhere other than here

PANAMA

A CHEVROLET dealer in Panama City has celebrated 100 years of the legendary American brand. Bill Cramer Chevrolet put on a special show featuring classic Chevrolets from the past, and served food and beverages. The dealer has been selling Chevys for the last 46 years, and is considered by Panama residents to be a ‘staple’ of their city.

26 | CarDealerMag.co.uk

ALABAMA

A TOYOTA dealer in Alabama described as ‘Taliban Toyota’ by a rival showroom has been awarded £4.6m in damages. Iranian-born Shawn Esfahani of Eastern Shore Toyota sought £20m in compensatory and punitive damages. One salesman at the competitor’s business claimed Esfahani put his brother’s and other soldiers’ lives at risk in Afghanistan.

UAE

CHINA

GENERAL Motors has plans to double its annual sales to five million vehicles in China by 2015. GM has been outperforming the market so far this year thanks to the Chinese buying Buicks and Chevrolets in their droves. The country’s car market has downsized to 3.6 per cent growth in the first nine months of 2011, after 32 per cent and 46 per cent rises in 2008 and 2009 respectively.

DEALERS in the United Arab Emirates are facing everincreasing waiting lists… for used cars. One Honda dealer is experiencing a flurry of customers saying if the dealer can find a used car at the right price they will buy it. It’s predicted the situation will have a massive effect on the used car market in the state, with some believing used cars will make up 15 per cent of all cars sold in 2012.

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@DouglasStafford

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A customer took a test drive and paid a £500 deposit on a car. She signed an order and said the remaining balance would come from pre-arranged finance. We took the car off sale and prepared it for delivery. A month later she emailed us stating that her circumstances had changed, she would not be taking the car and asking for her deposit back. We explained that she had entered into a binding contract and that legally, her deposit was forfeit but we would talk to her about how best to accommodate her. She, however, has issued court proceedings for the return of the deposit. What’s the legal position? Are we right? SH, Bridgwater

ADVICE

Problems with a Porsche Q. We bought (or thought we had bought) a Porsche 911 through a well-known trade intermediary. The price was listed, we accepted it and the trade vendor raised an invoice which was sent to us. I had an established retail customer ready who has dealt with us before and who paid a deposit unseen against the car which detailed the terms of the sale and would have shown us a £5,500 profit. We made several attempts to contact the trade vendor to arrange payment both directly and through the intermediary but all lines of contact seemed dead. After some persistence they finally came back and admitted they had sold the car to their own retail customer after they had invoiced us (and we believe had sold us) the vehicle. Do we have a legal case against them? DM, London

A. These cases are called ‘loss of chance’ cases as you missed the ‘chance’ of a profit rather than a proven profit. Court cases in this area can be protracted, expensive and risky so the place to start is to make a complaint about the vendor to the intermediary to see if some settlement can be mediated. If that fails to resolve the case we would need to take a detailed look at the buying process and the terms and conditions of the trade sale and take a view on the certainty that the retail deal would have proceeded before we could advise on court action.

The potential danger is not the contract (which we can probably establish) but the finance position. If the deal is ‘subject to finance’ the customer can withdraw whether they are organising the finance or you are. The question is whether that was true in this case – and more particularly whether the customer’s withdrawal was because of finance being failed to be approved. The case turns on whether the deposit was to secure a binding contract or whether it was to confirm an ‘expression of interest’ prior to a contract being signed. They are clearly seeking to bring the case on the latter grounds. I think the court would wish to establish quite firmly that the grounds for withdrawal were on the grounds of the ‘refusal or inability’ to get finance, rather than for any other reasons. In my view the claimant appears to be trying to

wriggle out of a binding agreement. Even if credit had been refused, you were not given the opportunity to arrange credit on her behalf. Furthermore you incurred clear losses as you took the vehicle off sale and prepared it on the assumption that the deal would be carried through. I believe that were the customer to testify that she had not sought finance, or finance had been offered but she had withdrawn from the finance process or some other reason had been the cause

of withdrawal from the sale, then the court would conclude that she had broken a binding contract and the deposit would be forfeit. The best route is to probably seek to draw these matters to the attention of the court by filing a defence and then seek to conclude a negotiated and/or mediated settlement, the latter of which should be offered as part of the court process. In short I think – aside from the possibility of the refusal of finance which we can verify beforehand – we have a strong case.

Q. We sold a customer a car for £3,000 which we had taken as a trade-in. It was subsequently shown to be lacking power in hard acceleration. The first time we took it back, a number of apparent defects were corrected but this failed to clear the fault. We took the car back again, provided the customer with a courtesy car and located the problem (turbo) but it needed a main dealer to fix it. From sale to resolution was less than a month and the customer was not disadvantaged as we met all the costs of the repair and they had a

replacement vehicle at all times. We have now had a solicitor’s letter demanding the return of the vehicle and a full refund. I thought that resolution in these cases was a fix, not a refund? KP, Cheltenham A. The car should be fit for purpose and provided that is the case, a fix is the resolution providing the repair is completed in a timely manner. ‘Lacking power in hard acceleration’ would not suggest the car was unfit for general road use – and unless you sold it for rallying, I would tend towards the view that the problem needed to be

fixed rather than the car being subject to a refund. There is an Appeal Court case (Bernstein v Palmerston Motors, 1987) specifically relating to the supply of a motor vehicle where it was held that the supplier must be given three chances to rectify the fault for which the goods are rejected. I think given case law, the timeliness of the fix and the fact that the customer was not significantly disadvantaged would mean that the court would agree that you have done all that was necessary – and a fix rather than a refund is appropriate as a resolution in this case.

Surely a fix, not a refund, is enough?

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 £34.99 per year. Sign up at CarDealerClub.com 28 | 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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FINANCE. SUCCESS

Bridford busy with Evoque purchasers

More private buyers opting for motor finance, figures reveal It has the edge over other purchasing options, according to FLA spokesman

BRIDFORD Financial Solutions has already funded £1m-worth of Range Rover Evoques. Premiership footballers, WAGs and company directors are so desperate to get their hands on the new model they have inundated the firm with finance requests. Bridford has so far funded 30 Evoques – at an average of more than £43,000 – and there are plenty more buyers lining up to be next. Boss Tim Marlow said: ‘We knew demand would be high but we have been pleasantly surprised at just how strong interest has been.’ The most popular model has been the 190bhp 2.2-litre diesel Evoque Dynamic (threedoor coupe and fivedoor). The demographic of buyers has been mainly company directors aged between 35 and 45. ‘Another large group is high net worth individuals including a lot of Premiership footballers and we are expecting more interest from this sector, especially among their wives and girlfriends given Victoria Beckham’s role designing and promoting the Evoque.’

otor finance has achieved its highest recorded share of the private new car sales market for four years, according to latest FLA figures. The trade body for the motor finance industry found that in the last 12 months, 57.9 per cent of people buying new cars used forecourt finance. The number of new cars bought on finance was also up – by 17 per cent in August – and the number of used cars was up by 80 per cent compared with August last year. In the new car market, recent sales trends continued. Leasing was up by 38 per cent and Personal Contract Purchase (PCP) by 24 per cent compared with the year before. Use of both forms of credit rose in the used car market. Paul Harrison, head of motor finance at the Finance & Leasing Association, said: ‘These figures show that forecourt finance continues to be extremely popular. ‘Motor finance has an edge over other purchasing options in current economic conditions as customers are able to negotiate a finance package to suit their budget, whether it is

Car buyers can negotiate a forecourt finance deal to suit their budget a leasing, PCP, hire purchase or a loan agreement. ’The FLA’s Specialist Automotive Finance scheme for dealers, which has been presented to MPs in Westminster, means consumers can be even more confident when buying cars

‘‘

Forecourt finance continues to be extremely popular.

using finance. The scheme tests dealers’ knowledge of the products they are selling. 1,500 showrooms are signed up to SAF, and the strong sales figures are consistent with continued improvements in customer service.’

Awards handed out at Alphera’s fifth dealer and broker forum ALPHERA Financial Services has announced the winners of the company’s fifth annual dealer and broker forum. The awards, which are divided into three categories – Dealer, Broker and BDM of the year – were decided from criteria based around the quality and efficiency of financial activity

over the past year. Kirk Franks, sales manager at Alphera, said: ‘Despite recognising 2011 as a tough year, we have seen some great success amongst our dealer and broker partners which we felt was important to share and recognise.’ The Dealer Partner of the Year Award went to Richard Sanders,

while the Broker Partner for 2011 was awarded to Meridian Finance. Finally, the Business Development Manager of the Year Award was presented to Nick Edwards. The forum also included an industry update from the FLA and information on used car pricing trends from CAP.

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 city cars FIAT 500 YOU can’t really talk about city cars without including the Fiat 500. The svelte, retro-styled car has been a runaway success for the Italian firm. And one of Fiat’s most successful models has been the one fitted with the 875cc TwinAir unit. Perhaps unsurprisingly, Fiat has a couple of finance deals not on the two-pot motor but the 1.2-litre version. Customers can get into the Lounge model – which boasts 15-inch alloys, Blue&Me hands-free, glass roof and air con – by paying out a deposit of £1,250 after a Fiat contribution of £250,

followed by 36 monthly payments of £179 at 5.4 per cent APR. An optional final payment of £4,537 is required plus a fee of £285 bringing the total amount payable to £12,231.

secures the car and an acceptance fee and a purchase activation fee of £140 and £95 respectively are required, bringing the total amount payable to £10,095.55.

TOYOTA IQ IF THE Smart is the car that was effectively the first 21st Century city car, this is the car that aims to take things forward. It boasts more seating than the Smart and looks that are just as quirky, and has a tempting finance deal attached to it at the moment. It comes with alloy wheels, air conditioning and heated door mirrors, and is fitted with Toyota’s trusty little 1.0-litre VVT-i engine. A £1,575.59 deposit after a £500 finance deposit allowance starts the deal, followed by 35 monthly payments of £179 at 5.1 per cent APR.

SUB-PRIME TIME

Still money to be made

SMART FORTWO IT COULD be argued Smart invented the modern-day city car, as its two-seater fortwo coupe has become a symbol of 21st Century urban transportation. The firm has currently got a tempting finance deal to get more buyers into the car, and is offered on the Pulse (71bhp) micro hybrid drive model which features air conditioning and alloy wheels. A deposit of £1,995 is required by the customer to get the deal rolling and Smart dealers will also contribute £581.55, then 36 monthly payments of £99 at 5.9 per cent APR follow. An optional final payment of £3,720

Meldrum

An optional final payment comes in at £4,149.90 making the total amount payable £12,490.49. The car also comes with two years’ free servicing to sweeten the deal.

was discussing business plans with some of my friends in the motor industry recently and was pleased to discover that most of them actually had their plans for 2012 in place already. Some had introduced their plans early so they could be fine-tuned as 2011 draws to an end. One adventurous plan includes expansion through acquisition as well as the opening of a new site in a town a few miles away. Expansion is a strong indication that this dealer is looking to grow next year and not just simply hope to hold onto previous business levels. Other plans were more basic and involved what could be considered a bit of early ‘spring cleaning’ – looking at how effective certain marketing plans had been in 2011 and either replacing those that didn’t offer the best value or at the very least negotiating discounts for next year. But what about the business plans for the rest of this year? In the past, dealers would say that customers don’t buy in the run-up to the festive holidays but that just isn’t true and we all know it. There are deals to be done this side of Christmas and I really can’t see why 2011 has suddenly come to an end just because the clocks have been moved back an hour. Can you imagine what it would be like to be the one motor dealer in your area who decides not to close the doors for the rest of the year and instead invests time and effort into generating some last-minute deals? Think about how much difference a good couple of final months would make to this year’s profits. There’s little point in having great plans for next year if you can’t survive the end of this one.

‘Think about how much difference a good couple of final months would make to profits.’

Who is Jim Meldrum?

Jim is regional sales manager for First Response Finance. Call him on 07917 460 111 or email Jimm@frfl.co.uk

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

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big mike.

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

He got his new car... and he’ll need it to get a new girlfriend!

ood taste isn’t something you’d normally associate with an overweight middle-aged car dealer from the West Midlands, but even I draw the line somewhere. I may live in a house that has more than its fair share of mock in its Tudor, and I might spend my weekends with my beer belly stretching the stripes on my West Bromwich Albion shirt until they’re a little bendy in the middle (it diverts the eyes from my fetching sock/sandal combo), but when it comes to cars I tend to prefer them absolutely stock, bog-standard. Okay, so I drive a Nissan Maxima as my daily smoker and there aren’t many off-the-shelf bodykits available for those, but even if there were, I’d steer well clear. The reason I mention this is because such horrific modifications can absolutely destroy a car, as evidenced recently when a young chap came onto my lot to have a look at a Focus I had for sale. The car was a smart, clean 1.6-litre three-door example on a 2002 ‘02’ plate, metallic black, fairly nice spec, and was priced at a not-unreasonable £2,195. The young man in question was smartly dressed (it must have been his lunch hour from work), articulate and seemingly quite intelligent – certainly not indicative of the type of pond-life you associate with doing burnouts in the Asda car park on a Friday evening. He told me he’d just turned 21, had four years’ driving experience behind him and was looking for something a little bigger and faster than his current 60bhp Fiat Punto, especially as his girlfriend had just started uni a couple of hundred miles away, and he was still under the illusion that she’d remain monogamous beyond the end of freshers’ week, which in my day was about as likely as a middle-aged couple who lived in a static caravan winning £100m on the Euromillions. So possible, I guess, given recent events. But I digress. Laddie told me he had a 2000 W-reg Punto which his mum had bought him when he passed his test. Miles were sensible at less than 80k, it was metallic blue, it had a reasonable history and he’d kept up the service schedule himself, as he was coming to the end of an engineering apprenticeship in the motor industry and knew his way round an engine bay. I twigged this early on as a matter of fact, because unlike most punters, he actually knew which bits of the engine bay to look at when inspecting the car – unlike some of the clowns who whip out the dipstick, but then

Big

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

Accessories left Big Mike feeling blue...

don’t know how to put it back. On the basis he clearly knew how to look after a car, and seemed to take immense pride in it, I did the deal there and then. £1,300 plus the Punto would buy him the Focus, so we shook paws, he left me a pair of fifties as a deposit and he arranged to come back on Saturday, bright and early in the morning, so he could take his new car off to Durham to show it to his dearly beloved. If only I’d asked to see the car first… Yes, I know that was rather silly of me, but I’ve always been a maverick. I go out of my way to ignore sage advice, instead preferring to do things the risky way. In many ways, it makes life more interesting. And interesting was certainly one word you could have used to describe the metal-flake blue chavved-up

‘I go out of my way to ignore sage advice, instead preferring to do things the risky way.’ shopping trolley that was waiting outside my gates as I unlocked that Saturday morning. Somehow, the young lad had managed to decorate the thing with every ridiculous accessory known to man. The distasteful paint job (for which he confessed he’d paid two grand) was the icing on a particularly unpleasantly-flavoured cake. It had fake chrome spinners, neon floor lights, a steering wheel the size of a £2 coin, rally car seats, illuminated windscreen washer jets and a prolapse of multicoloured wiring hanging from the dashboard like projectile vomit, where he’d hastily uninstalled his in-car entertainment. Nice. Now any sensible dealer would at this point have given the boy his fifties back, made his excuses and carried on as normal. But Big Mike’s a softie at heart, and I knew the poor lad was on a promise with a girl who probably wouldn’t even remember his name by Christmas, so I did the decent thing and went through with it. At least with a more tasteful motor, he’d find it a little easier to find a replacement girl… In the meantime, if you know anyone who wants to look like an extra from The Only Way is Essex, and doesn’t mind the fragile reputation of an ageing Fiat, send them my way… £995 ono.

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 | 33

forecourt.

Andy Connell

Nissan’s category manager for 4x4s and sports cars speaks to James Batchelor about the reasons why customers are attracted to the GT-R Why did you decide to give the GT-R a special launch? This launch is not just for journalists but also for 80 GT-R owners and potential customers to try out the new car. We’ve done this to expose our guests to the new car so that they experience the changes that have been made to the GT-R and to meet Katzutoshi Mizuno. He’s very much the father of GT-R – he’s the chief design engineer and chief project engineer. He is the father of the GT-R project and Mizuno visiting the UK is a big deal in itself, as it is the first time he has visited this country to meet journalists and customers. Is the GT-R customer loyal? Very much so. The majority of customers attending this launch already own a GT-R. Around 1,850 GT-Rs have been sold in the UK since the car was launched in 2007, and many customers have had three GT-Rs, deciding to have one after the other as the car has improved. We are also hosting some potential customers who own Porsches and BMWs and who are now seeing the GT-R as a real alternative to those cars. That must make you happy having customers buying one GT-R after the other? Oh, it makes us very happy! With the continual changes to the car, there’s always a reason to jump into the next one. Our customers also experience a very close relationship with their Nissan High Performance Centres, and there is a very developed owners’ club structure. Customers are very passionate about their cars; they’re very loyal, very knowledgeable and there is a strong community culture with GT-R. It’s very unique and it is brilliant to have a customer base like that. Is the UK an important market for GT-R? Very much so. There is a very strong GT-R community here, and we have many customers who have been through the whole 20-year history of GT-R. The thing that is sometimes overlooked is that we are very much the third biggest market in the world, and represent about a half of all GT-R sales in Europe. The car has an iconic position in the UK motoring culture and that is something very special. I suppose with the GT-R R35 (the current GT-R) being 34 | CarDealerMag.co.uk

‘‘

officially sold here, it is a recognition of the UK being a key market? Absolutely. We sold around 100 GT-R R34s officially here in the UK and slightly fewer R33s and there were lots of imported cars. But with R35 being sold here in larger numbers, it shows how important the market is. You must remember, within the R35’s segment, we drive a significant share of that subsector of premium sports cars, and our share is growing in a slightly declining market. The GT-R is one of the Nissans which is really driving up people’s perceptions of the brand.

The GT-R is one of the Nissans which is really driving up people’s perceptions of the brand.

Will the number of Nissan High Performance Centres rise in the future? At the moment we have 21 – soon to be 22 – Nissan High

Performance Centres, going from 13 to 21 in the last 12 to 14 months. We are not seeking to radically increase that but we have two to three we want to open in the fullness of time. It’s got to be viable for the dealer and we look at each case on its merits. The majority, but not all, are existing Nissan dealers. What is the idea behind Nissan High Performance Centres instead of allowing every dealer to sell GT-R? The customer needs to have a sales and service experience which befits the car. The GT-R is a very complex machine and demands special tooling and specialist technician training, and there is a requirement to have specialised people looking after the car. Realistically, with around 190 dealers, it wouldn’t be right for us, the dealer, or the customer if every dealer became a high performance centre. We will sell around 400 GTRs this year and for some dealers there will be a viability issue, and a lack of customer focus if every dealer sold GT-R.

themanual HANDLING

STYLING

The GT-R is a stunningly composed car – no doubt helped by the new suspension set-up.

Purposeful looks remain unchanged to the 2011 car – the changes are underneath.

ENGINE

Even more power has been strained from Nissan’s glorious 3.8-litre twin-turbo V6.

Nissan GT-R With four years still to go before the GT-R is replaced, are the 2012 upgrades worth the wait? James Batchelor tests it What is it? The GT-R was always an impressive car both on the track and off it, but unbelievably it’s been improved for model year 2012. Taking the headlines is a 20bhp hike in power, while the suspension has also been set-up asymmetrically to cater for the added weight of the driver in RHD – aiding stability and ride comfort. Gear changes have also been refined.

What’s under the bonnet? Nissan’s glorious twin-turbocharged 3.8-litre V6 which now packs 542bhp, and is cleaner and more economical. As you’d expect with more power extracted from the V6 lump, the car’s performance figures have noticeably improved too. The 0-60mph dash now takes a more than respectable 2.7 seconds, no doubt helped by a delightfully smooth six-speed double clutch ‘box.

What’s the spec like?

What do the press think of it?

The GT-R now comes with a rear view camera as standard making an already useable sports car just that little bit more practical. The camera joins leather upholstery, climate control and daytime running lights as standard equipment. Better quality materials and a more premium Bose sound system have also been added. Customers will also be able to choose a hard-core performance pack too – deleting the rear seats and increasing the car’s cooling.

All the top car publications are agreed here – the GT-R has got even better. Autocar said: ‘An extraordinary car just got even better still – for a surprisingly small increase in price.’ Auto Express said: ‘The GT-R remains peerless’, while Evo felt the GT-R remained one of the most characterful and mindscrabbling experiences available’. Octane said: ‘Nothing came close to the 2011 GT-R. And they’ve made it just that bit better.’

What’s it like to drive? The GT-R’s designer and engineer has spent time increasing the suspension’s spring rates by 50kg on the right-hand side for right hand drive cars (vice versa for LHD) to give the car perfect balance. Couple that to more power and the GT-R drives better than ever.

What do we think of it? It’s difficult to come to terms with how Nissan has managed to improve what was already an astounding car. But somehow they have, and Nissan’s High Performance Centres will be pleased as there’s no doubting what owners of the 2011 GT-R are going to do.

the knowledge Model: Nissan GT-R MY12 Price: £73,500 (est) Engine: 3.6-litre, twin-turbo V6 Power: 542bhp, 632Nm Max speed: 196mph (est) 0-60mph: 2.7s MPG (comb’d): 24.0 Emissions: 275g/km (est) Residual values (three years): tbc

target buyers: Mostly current GT-R owners but also first-time customers.

the rivals: Porsche 911 Turbo S, BMW M3, Lotus Evora.

Key Selling Points: 1. Power upgrade allows 542bhp to be unleashed through four wheels. 2. Suspension changes make the GT-R more balanced. 3. 2012 car takes the GT-R package that next stage further in terms of desirability.

Deal Clincher: Despite a price hike, the GT-R will still probably cost a lot less than its competition. CarDealerMag.co.uk | 35

forecourt. the knowledge Model: Vauxhall Astra GTC SRi Price: £22,430 (tested), range from £18,495 Engine: 2.0-litre, diesel Power: 163bhp, 350Nm Max speed: 131mph 0-60mph: 8.4s MPG (comb’d): 58.9 Emissions: 127g/km Residual values (three years): 30 per cent

target buyers: A 50:50 split between fleet and private buyers.

the rivals: Volkswagen Scirocco, Renault Megane Coupe, Volvo C30.

Key Selling Points: 1. GTC has been tuned on Britain’s unique, undulating and rutted roads. 2. Head-turning looks are distinctive. 3. Excellent space in the back means it’s a genuine five seater with decent boot.

Deal Clincher: Around £1k cheaper than Scirocco – roomier and better-looking too.

STYLING

Only the aerial and door handles remain from the five-door hatch. The rest is bespoke.

Vauxhall have re-entered the small coupe market in fine style with the new Astra GTC. James Batchelor has driven it What is it?

What’s the spec like?

This is the replacement to the swish-looking Astra Sports Hatch and marks Vauxhall’s re-entry into the burgeoning small coupe market. The firm is keen to point out it’s no three-door version of the humdrum hatchback, for only the aerial and door handles are the same. The UK will be the biggest market for the car in Europe with 10,000 sales a year. The top-of-the- range, £22,430 SRi 2.0-litre diesel is the predicted best-seller

There are only two – and it’s the most expensive one that most customers will opt for. The range kicks off with the 1.4-litre Sport at £18,495 and for that, buyers will get 18-inch alloys, air con and cruise control. SRi begins at £19,945 and tops out at £22,430 for the 1.4-litre and comes with sports seats, leather steering wheel, fog lamps, hill start, and electric parking brake. There’s also a plentiful range of costly option packs.

What do the press think of it?

What’s under the bonnet?

What’s it like to drive?

What do we think of it?

Two turbo-charged petrols and two turbo-charged diesels. First up is the entry-level 1.4-litre petrol in 118bhp and 138bhp guises followed by the 178bhp 1.6-litre turbo. The 2.0-litre diesel is the best all-rounder packing 163bhp and emits 127g/km of CO2, while a 1.7-litre diesel comes later. A fire-breathing VXR version and green ecoFLEX models are also on the horizon.

A large part of the GTC’s development was carried out in the UK, and it shows – the car deals with tricky corners and unforgiving surfaces with tremendous ability. Clever new HiPerStrut suspension affords a very pleasant ride, and overall it’s agile and grippy. But not too sharp and involving to take the forthcoming VXR’s limelight.

This is one of prettiest and finest driving Vauxhalls for as long as we can remember. There’s no doubt Vauxhall engineers’ hard work has paid off for the GTC is mightily adept on British roads, and British designer Mark Adams’ design is probably class leading. The only downside is that we feel the entry-level Sport trim is a bit too basic.

Top Gear confidently said: ‘No modern Vauxhall has looked (or driven) better.’ Autoblog UK felt the GTC ‘looks great, offers a keen drive, and is more practical than rivals’. Against the GTC’s rivals, Autocar ‘heartily recommends’ the Vauxhall, The Sun says ‘it may be the best Astra Vauxhall have ever done’, while Honest John feels that it’s much more zesty than the old Sport Hatch.

Vauxhall Astra GTC

SPACE

The GTC can easily swallow up six-footers with room to spare, even in the back.

36 | CarDealerMag.co.uk

HANDLING

Chassis development took place in Britain, and it shows as the car handles nobly.

themanual LOOKS

The Q3 shares looks with the larger Q5 and Q7 but is smaller and aims for X1 and Evoque.

HANDLING

Q3 is solid and well balanced, but it’s forgettable to drive. Light steering spoils it too

SPEC

You couldn’t say the Q3 is short of equipment, but buyers will be ticking an expensive and long options list.

Audi Q3

the knowledge

Audi are seeking to lure Range Rover and BMW drivers with the new Q3. Duncan Chappell had a stint behind the wheel What is it?

What’s the spec like?

The Q7 and Q5 are now followed by the Q3. Billed as an affordable entry level into the world of Audi SUVs, the Q3 will entice buyers from the forecourts of Range Rover and BMW. It will fight it out on the streets of fashionable Kensington to win the hearts of the style- and badgeconscious townies. Approximately 100,000 Q3s will be built in the first full year of production.

Not bad, although the buyer will have to look long and hard at the options list to get everything they want in the car. We drove the 2.0-litre TDI S-Tronic in SE spec with a starting price of £27,650. Add sat nav, leather, xenon lights, sunroof (and other stuff) and it ends up with a price tag of more than £40k! So, the spec is good if you want to spend the money to get it.

What’s under the bonnet? There are two engines available so far, a diesel and a petrol. The 2.0-litre TDI quattro S-Tronic produces 175bhp and from December will be available with 138bhp and with manual gears. The 2.0-litre petrol delivers 168bhp with the manual and 208bhp in S-Tronic spec, both are quattro. There are firm rumours that the 2.5 litre unit from the TT-RS and RS3 will be dropped into a top spec S-Line model in approximately 18 months, producing up to 300bhp!

What’s it like to drive? It’s like… an Audi. Solid and well balanced but with a subtlety that makes it almost forgettable to drive. Visibility is slightly hampered by the flip-up screen in the middle of the dash, and getting in and out could see you dropping your posh coffee as you catch your shoes on the high sills. Very light steering means you’re kept guessing through the corners, but – once used to it, you can chuck it about and it copes well. This will help when nicking a space in the car park at Marks & Spencer.

What do the press think of it? WhatCar.co.uk said: ‘With style-led cars such as SUVs, your choice will probably come down to which one you like the look of most. We think the Q3 will appeal to plenty of buyers, but we also think the slinkier Evoque will appeal to even more.’ And the Telegraph adds, ‘the entry-level 138bhp 2.0-litre TDI is by far the best model’ and ‘for now you’re best off buying the most basic Q3.’

What do we think of it? Audi now has 38 models in their range – from a supermini to a supercar, and all have their rightful place. It is the same story for the Q3. It isn’t quite as pretty as the Evoque and will have to fight hard to steal BMW faithfuls from the X1, but it is in with a shout. Cheaper running costs make it a good buy, but does the premium small SUV buyer think about that? Or is it more what badge it has on the bonnet?

Model: Audi Q3 SE S-Tronic Price: £40,040 as tested. Range from: £24,560 Engine: 2.0 litre, diesel Power: 175bhp, 380Nm Max speed: 132mph 0-60: 8.2 secs MPG (comb’d): 47.9 mpg Emissions: 156 g/km Residual values (three years): 45 per cent

target buyers: Style conscious young families. Buyers looking to get into the Q range on a budget.

the rivals: Range Rover Evoque, BMW X1.

Key Selling Points: 1. Styling that is understated and subtle but unmistakeably Audi. 2. Highly competitive pricing structure that competes well with the rivals. 3. Cheaper way into the Audi ‘Q’ range.

Deal Clincher: Cheaper to run than the rivals. CarDealerMag.co.uk | 37

forecourt. the knowledge Model: Nissan Qashqai Price: £16,495 Engine: 1.6-litre, dCi Power: 128bhp, 320Nm Max speed: 118mph 0-60mph: 10.3s MPG: 62.8mpg Emissions: 119g/km Residual values (three years): 44 per cent

target buyers: Fleets and user chooser company car drivers.

Nissan Qashqai 1.6dCi

Nissan has added a new diesel unit to its unstoppable crossover. Is it up to the job? James Baggott finds out What is it?

journalists on the launch that it lacked a little low-down grunt, but this wasn’t something we experienced. More noticeable was the refinement. We just weren’t that keen on the light steering.

A new low-emissions, frugal diesel unit of 1.6 litres which all but replaces the 2.0-litre dCi in the hugely popular Qashqai range.

What’s under the bonnet?

the rivals: Kia Sportage, Hyundai ix35, Ford Kuga.

Key Selling Points: 1. It returns 31 per cent better mpg than the 2.0-litre. 2. The Around View Camera is a great option. 3. It’s the Qashqai, but with a more sensible engine.

Deal Clincher: 62.8mpg is not to be sniffed at.

An all-new 1.6-litre dCi lump that offers 23 per cent lower CO2 emissions and a 31 per cent improvement on fuel economy over the lump it replaces. With stop start tech it emits 119g/km, while serving up 128bhp and 320Nm. Fuel economy of 62.8mpg will be a winner.

What’s the spec like? An Around View monitor camera, normally found on cars in much higher classes, is now available on

What do the press think of it? the Qashqai. Using four cameras it uses a computer to generate a 360-degree bird’s eye view of the car. It’s very useful for parking and works a treat. It’s standard on NTEC+ and Tekna trims.

What’s it like to drive? There were a few complaints from

Autocar were impressed, claiming the new unit is the ‘pick of the bunch’ in the Qashqai range. Auto Express said: ‘The 1.6-litre dCi engine is the perfect companion for the already impressive Qashqai.’

What do we think? There will be few who’d bet against the 1.6dCi adding a fair few more sales to the Qashqai’s already impressive tally. It’s our pick of the range.

Unlock your potential

38 | CarDealerMag.co.uk

themanual

Hyundai i20 Blue

the knowledge

Hyundai has added another variant to its popular i20 model â&#x20AC;&#x201C; but this time itâ&#x20AC;&#x2122;s a green one. James Batchelor investigates What is it?

Itâ&#x20AC;&#x2122;s easy and accomplished on the go and is more than a match for Vauxhallâ&#x20AC;&#x2122;s Corsa. The car also has an impressively tight turning circle.

Itâ&#x20AC;&#x2122;s what happens when Hyundai takes one of its i20s and gives it the eco treatment. 98g/km and no road tax and congestion charge are the benefits buyers will enjoy.

What do the press think?

Whatâ&#x20AC;&#x2122;s under the bonnet? A trusty 1.4-litre diesel unit. You couldnâ&#x20AC;&#x2122;t call it refined but itâ&#x20AC;&#x2122;s capable enough and offers low emissions and high fuel economy. 0-60 comes up in 13.3secs, while MPG is a very pleasing 76.4. This is aided by stopand-go technology.

Whatâ&#x20AC;&#x2122;s the spec like? The Blue is based on the mid-range Comfort model, so for buyersâ&#x20AC;&#x2122; money, itâ&#x20AC;&#x2122;s pretty decent. For ÂŁ13,195, buyers

$'9(57 QHZ ORRN 35,17 LQGG

get 15-inch alloys, air-conditioning, Bluetooth connectivity with voice recognition. and MP3/Aux In. There are also electric heated and folding door mirrors, a trip computer and steering wheel audio controls.

Auto Express concludes â&#x20AC;&#x2DC;itâ&#x20AC;&#x2122;s definitely worth a lookâ&#x20AC;&#x2122; while What Car? reminds customers they should only by the diesel Blue if their mileage warrants it.

What do we think of it?

For a no-nonsense supermini the i20 is more than up to the job â&#x20AC;&#x201C; we like it. But unfortunately, its advancing years Whatâ&#x20AC;&#x2122;s it like to are having a negative effect on image drive? Rather good despite it getting on a bit. and therefore desirability.

Model: Hyundai i20 Blue Price: ÂŁ13,195 Engine: 1.4-litre, diesel Power: 89bhp, 220Nm Max speed: 108mph 0-60mph: 13.3s MPG (combâ&#x20AC;&#x2122;d): 76.4 Emissions: 98g/km Residual values (three years): 28 per cent

target buyers: Retail and fleet, but mostly city drivers in London.

the rivals: Ford Fiesta ECOnetic, Volkswagen Polo Bluemotion, Skoda Fabia Greenline.

Key Selling Points: 1. Decent levels of equipment. 2. Economical and flexible. 3. No London congestion charge and free tax.

Deal Clincher: Rival models are considerably dearer.

CarDealerMag.co.uk | 39

forecourt. the knowledge Model: VW Amarok Trendline 163 Price: £13,195 Engine: 2.0-litre, diesel Power: 161bhp, 400Nm Max speed: 112mph 0-60mph: 11.1s MPG (comb’d): 35.8. Emissions: 209g/km Residual values (three years): 38 per cent

target buyers:

Commercial market, fleets.

the rivals: Mitsubishi L200, Nissan Navara, Toyota Hilux.

Key Selling Points: 1. Brings Volkswagen build quality to the pick-up market. 2. Can cope with all terrains. 3. Excellent range of practical options to suit buyers’ requirements.

Deal Clincher: Widest load area in its class.

VW Amarok Trendline 163 Volkswagen has returned to the pick-up market for the first time since the 1980s. James Batchelor takes a look What is it? This is Volkswagen’s offering in the pick-up market and trades upon the firm’s strong brand perceptions among consumers of durability, reliability and competitive pricing.

What’s under the bonnet? There’s only one engine available – a 2.0-litre TDI unit available in 120bhp and 161bhp forms. VW is the first in the pick-up market to introduce a 2.0-litre diesel.

alloys, aircon, and selectable 4WD. Trendline kicks in at £24,943 for the 161bhp version which features 17-inch alloys, cruise control, leather steering wheel and automatic air conditioning. What’s the spec The range tops out at £28,039 for like? The Amarok is available in three trims the Highline 161bhp which boasts permanent 4WD, leather, 18-inch – Startline, Trendline and Highline alloys, privacy glass, heated front seats – with prices starting at £22,543 for and a chrome rear bumper. Startline 122bhp which features

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What’s it like to drive? It’s refined and feels dependable if a bit too dull. But the Amarok is let down badly by a poor steering feel and engines that feel too underpowered.

What do the press think of it? Autocar thinks Nissan, Toyota and Mitsubishi ‘should be concerned’ while Honest John concludes it’s ‘solidly built, impressive and easy to drive off road’.

What do we think? This is a quality product from Volkswagen and shakes up a sector dominated by the Japanese. There are a few gripes but otherwise it impresses.

themanual

Infiniti FX30dS

the knowledge

Can the addition of a 3.0-litre diesel engine make Infiniti’s flagship SUV any more desirable? James Batchelor reports What is it?

well as it looks, for the ride is far too hard, and the 3.0-litre lump feels a little strained. That said, the gear changes are smooth, and the 360-degree camera is very useful.

Infiniti has slipped a turbocharged diesel unit into the flagship SUV and it joins the 3.7litre V6 and 5.0-litre V8 versions. Think of it as the economical choice.

What do the press think?

What’s under the bonnet? The 3.0-litre V6 diesel manages to haul the large car to 60mph in 8.1 seconds and onto 132mph via a seven-speed auto ‘box. Fuel economy is reasonable at 31.4mpg, and emits a slightly disappointing 238g/km CO2 emissions.

The GT starts at £46,840 and comes with leather, electric seats, xenon lights, and 20-inch alloys. Prices top out at £53,390 for the S Premium which features 360-degree camera, lane departure prevention, 21-inch alloys, and Bose sound system.

What’s the spec like?

What’s it like to drive?

There’s three to choose from for the diesel – and all are well-equipped.

It’s a shame the FX doesn’t drive as

Autocar says the engine is ‘a welcome addition’ but the 5.0-litre V8 petrol is ‘truer to its sporting character’, and Car Magazine said ‘if you want something different, the FX won’t disappoint’.

What do we think of it? The driving experience is neither luxurious nor sporty. But the diesel lump does make a lot of sense in a car of this size – we managed 35mpg.

Model: Infiniti FX30dS Premium Price: £53,525, range from £46,845 Engine: 3.0-litre, diesel Power: 235bhp, 549Nm Max speed: 132mph 0-60mph: 8.1s MPG (comb’d): 31.4 Emissions: 238g/km Residual values (three years): 33 per cent

target buyers: Buyers who value style over substance, and who want something different.

the rivals: Range Rover Sport, VW Touareg, BMW X6.

Key Selling Points: 1. Economical diesel unit. 2. Distinctive styling. 3. Lots of equipment.

Deal Clincher: Buyers will get plenty of admiring glances!

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PART OF

CarDealerMag.co.uk | 41

FEATURE.

Shiphappens

42 | CarDealerMag.co.uk

That’s our Bangers4BEN challenger – HMS Ark Royal – tied up alongside a French Autoroute. It broke down leaving us stranded and topped off a day of serious misfortune... but at least it made for an interesting tale. Here JAMES BAGGOTT reports how we, along with 30 other teams, helped raise a whopping amount of cash for BEN.

CarDealerMag.co.uk | 43

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FEATURE.

Far left, the Car Dealer team hitch a ride with the AA after disaster strikes the Ark. Below: Editor escapes stuck-in-lift drama

‘‘

Sadly, the Mighty Ark – the subject of a two-week refit in the boat shed below our offices – was torpedoed south of Reims.

‘‘

t’s 11.36pm. I’m in a lift in a hotel in the middle of France with four shattered AA men. James Batchelor and I are dressed as sailors, complete with Jean Paul Gaultier-style sailors’ hats. And we’re stuck between two floors. To say today hasn’t gone well would be a bit of an understatement. The series of unfortunate events that has led to this bizarre and, quite frankly, rather sweaty encounter is one that if it hadn’t happened to me, I simply wouldn’t have believed it. But unfortunately it did happen to me – and I’ve got the claustrophobia and pictures on Facebook to prove it. It’s the end of day one of Bangers4BEN, Car Dealer Magazine’s annual rally in aid of automotive industry charity BEN. We started this morning at 4.30am in Gosport and have driven 507 miles to Bourg-en-Bresse in a T-reg Volvo S80 which has been made to look like HMS Ark Royal. I use the term ‘driven’ in the loosest possible

sense. Sadly, the Mighty Ark – the subject of a two-week refit in the boat shed below our offices – was torpedoed south of Reims. A failed alternator was at fault for the decommissioning (not a penny-pinching Tory this time) and we were left languishing at the side of a French Autoroute, just 150 miles into our journey on the French side. But before I get to that, there’s a lot to tell you. Now in its fourth year, this year’s Bangers4BEN rally has been the most popular ever. After two trips to John O’Groats and an excursion to Monaco under our belts, 2011 saw 31 teams of intrepid travellers embark from Dover on an adventure that would see countless service station espressos despatched, the Mont Blanc tunnel penetrated and the home of Ferrari, in Maranello, Italy, explored. Perhaps it was the draw of visiting the supercar mecca that is the northern industrial hub of Italy which saw our event sell out in just two weeks.

But more likely it was the opportunity to buy shonky cars costing less than £500 and subject them to an epic 1,700-mile road trip with other like-minded charitable folk that was the real draw. Day one of Bangers4BEN is always an interesting experience. For weeks, and in some cases months, teams have been busy ‘improving’ their chosen chariots in secret. A few teaser shots via Twitter gave some teams’ games away prior to the event, but the majority kept their themes close to their chests. And we were firmly in that camp. As always, Team Car Dealer had let deadlines, vet visits, grannies’ birthdays and anything else we could muster as an excuse get in the way of finding a car for the trip. It wasn’t until we received a worried phone call from the B4B organiser-in-chief Kelly Neal from BEN demanding our non-existent car’s reg for the ferry booking that we really started to panic. CarDealerMag.co.uk | 45

2011 BANGERS4BEN

FEATURE.

CarDealerMag.co.uk | 47

FEATURE.

Fortunately, a call to Rob Kemp, sales manager of Richmond Cars in Portsmouth, proved fruitful. He’d just taken in a T-reg S80 with 120k on the clock. It had tax and MOT for four months and a decent service history. More important for our endeavours were the sumptuous leather seats (which sadly looked like the former owner had worn chain mail his entire driving life), recently re-gassed air con and a working stereo. A test drive threw up no concerns – it drove beautifully, smooth and silky thanks to a 2.4-litre petrol lump – so we handed over 500 notes and headed home. With a car finally sorted and just two weeks to go until the off, we rapidly needed to decide what to turn it into. Options included an Ikea delivery car which would have seen us paint it blue and yellow and labelling everything inside weird-sounding names like dashokla and radio casettkela with price tags that ended in .23p.Other ideas involved beards, Batch in a blonde wig and Abba while another involved turning it into a jam sandwich of the police variety. All were dismissed for numerous reasons despite Batch’s disappointment at not being able to wear the wig. However, on the way home from work one evening, I had a brainwave. Having recently moved office into a former ship-building yard, 48 | CarDealerMag.co.uk

‘‘

where neighbouring businesses still service Navy patrol boats, it made sense to turn our cruise-liner of the roads into an homage to arguably the greatest flagship the Royal Navy fleet has ever seen – the recently decommissioned HMS Ark Royal. Why? Well, being based opposite Portsmouth Naval Base, it’s hard not to be moved by the unceremonious axeing of the ‘Mighty Ark’. When it slipped back into harbour one foggy morning back in March, there was a distinct air of sadness around the South Coast – so it felt only right to transform our Volvo into a fitting tribute. It was clear we’d need help with our creation though. Fortunately for us, TSL Marine Services, based below our offices, were up for the challenge. Bosses Charlie and Phil asked staff if they’d be happy to stay behind after hours to help us complete our project and they all agreed. In fact they were quite excited by it all.

With HMS Puncher as a backdrop, our S80 was subjected to two weeks of after-hours treatment. The dark blue paint was sanded back and two tins of Navy-grade battleship grey paint, liberated from the store room, were rollered on. A black runway was applied, then an MDF bridge and ski ramp, fashioned in Handy Andy style. While this was taking place, my eBay watch list had been taken over by Dinky Harrier models and Airfix kits which soon arrived and were applied to the bodywork with the same glue used to stick boat hulls together. These things weren’t going anywhere fast. In fact, they weren’t going anywhere ever again. The night before the off, HMS Ark Royal slipped out of Endeavour Quay’s number one boat shed, watched by some open-mouthed yachties and Friday night pub goers who probably thought their Stella was a little strong. Little did I realise the significance of Phil’s final words as he saw us back out: ‘Give her a good run – we’ve had to jump-start the battery twice as we’ve left the doors open to let the paint dry and it went flat a few times.’

It was clear we’d need help. Luckily for us, TSL Marine Services were up for the challenge.

Team Klarius were our knights in a shining Renault; centre, GForces team’s fancy dress beards impressed

D-DAY To ensure I didn’t forget the landmarks of this year’s B4B, I wrote three-word notes in my book to refer back to when I wrote this. The fact the first point seems so insignificant now, goes some way to explaining the sheer magnitude of bad luck we encountered. Forgot Nav Cable, it reads. Not a major disaster on a normal trip, but when you’ve got up to 500 miles a day to cover on foreign soil, a sat nav you can only turn on for a few minutes at a time can become a bit of an issue. Especially when Batch gets lost trying to escape a John Lewis multistorey car park. Fortunately I knew the way to Dover from Gosport (right, left, right, straight on until you hit water again) so we settled into the first few hundred miles in our polyester navy get-up as best as you possibly can in polyester navy get-up. On arrival at Dover it was only right our car was subjected to a thorough cavity search in one of those garages you always drive past and wonder what’s going on inside. Of course, if you were going to smuggle red squirrels or Earl Grey tea out of the UK it would make perfect sense to do so in a car as inconspicuous as the Ark Royal, but then ‘rules is rules’. At least the border brigadier did have a sense of humour. ‘Permission

to come aboard,’ he joked, as he poked around under the bonnet. My, how we laughed. After no contraband (apart from two Costa lattes and a half-eaten bag of Haribo Starmix) was discovered we were sent on or way. Joining the Bangers4BEN line to board the ferry is always an occasion and this year’s competitors hadn’t let us down. Costumes and accompanying themes were on full display and while it’s impossible to list them all, every single entrant had made a cracking effort. Favourites included the Sturgess Baywatch Frontera, complete with The Hoff’s distinctive boat race adorning the spare tyre cover. One Marshall Motor Group team had gone all in with a Darth Vadar and Stormtrooper outfit combo and a Seat Toledo covered in modified Star Wars sayings. Pick of which had to be ‘Syth Happens’. How easily that could have become our motto... Autotrade-mail had invested in a Jaguar XJ and added a Union Flag roof decal and the driving duo had dressed as Austin Powers and Dr Evil, while Blackbird Communications had turned a ropey old Escort into a Moo-stang. Cow print exterior and cowboy costumes topped off the look. Two teams had gone for a Ghostbusters theme, one an homage to the A-Team with a Renault

Espace, another car was driven by a pair of Stigs, while a worrying number of competitors had opted for Fiats and Alfa Romeos. It would soon transpire that perhaps that was actually a stroke of genius. After a rather surreal channel crossing with an assorted cast of characters, we were soon rolling off the ferry onto the autoroutes heading south. Batch and I decided to pick up the pace – we wanted to get to the hotel sooner rather than later to ensure coverage on our website was comprehensive and we quickly latched on to the BEN team near the front of the pack. Settling in for the long haul I began to educate the quiffed one in popular music culture with a reptoire from the King of Pop. Unbeknown to many, Batch is actually a 1950s throwback and thinks Doris Day and Elvis are still in the charts. Torturing him with S Club 7 would therefore become my entertainment for the trip. Then disaster struck. Around 100 miles south of Reims the stereo stopped working, and before I could blame Batch for sabotage, the electrical gremlins spread to the instruments. The rev counter bounced back and forth, lights flickered on and off, then the speedo stopped. Then the rev counter stopped. Then the engine stopped. As we steered our stricken vessel towards the side of the road it was clear that now the fun had stopped too. EMERGENCY CALL The AA has been a huge supporter of Bangers4BEN since the event was launched. This year not only had it entered two teams to compete, it had also sent two CarDealerMag.co.uk | 49

FEATURE. patrol vans and four engineers to assist with any breakdowns. It had even given all competitors complimentary European breakdown cover, a European driving pack and a map. Nice chaps. ‘Andy, it’s James,’ I was making the call to the head of the four-man patrol team with the embarrassing news the organisers had been the first to breakdown. ‘The Ark’s dead – there’s no power and it won’t turn over.’ Even with my poor mechanical knowledge I had a horrible feeling it was the alternator. Due to our swift progress, we’d managed to put 50 miles between our ship and the AA teams, so warning triangle in place and yellow jackets donned, we got comfortable at the side of the road and did what any good journalists would do – wrote a blog and made a video (watch it by typing bit.ly/arkroyalbreaks into a browser). After an hour’s wait, those comforting orange lights illuminated the hard shoulder and we breathed a sigh of relief. Andy and his team confirmed my fears (much to Batch’s amazement) that it was in fact the alternator. For those of you with as much mechanical knowledge as me, this vital component charges the battery and without it, power is sapped so quickly from the cell you’ll run out of juice, and thus power, in less than 100 miles. To get us moving, the experts rigged up spare batteries in the boot next to the original to help us back to the hotel. The first got us 100 miles, flanked by the two AA patrols laughing and joking at our misfortune over walkie talkies. By the time we’d depleted the second battery it was beginning to get dark and starting to rain. The combination of lights and wipers ruined the third battery in less than 30 miles and a decision was taken to tug the Ark Royal the final 150 miles. The hunt then began to find a replacement alternator, which on the continent at the weekend wouldn’t prove to be an easy task. Those 150 miles did give Batch and I the opportunity to chat to AA patrolman Brian Evans. A Welsh legend, Brian, along with all the other patrolmen on the trip, had given up their time for free to assist with our charity challenge. His stories were plentiful and it was clear he was AA to the core. With a collection of classic AA service vehicles, including two motorbikes, in his garage, Brian was in the process of convincing his wife

The AA came to our rescue but even they couldn’t fix a busted alternator. Sad face.

that building a classic wooden AA hut in his front garden was a good idea. And, amazingly, it sounded like he was winning. It was well past 11pm when we finally rocked up at the first night’s overnight stop to rapturous applause, camera flashes and sniggers from our fellow Bangerers. The guffaws quickly turned into belly-aching laughs too when my phone call to Kelly was relayed, word for word, to a now quite merry bar. ‘Kelly, I can confirm this is not a joke. I repeat not a joke. We are stuck in the lift with the AA men. Get help. Quick.’ I’ve never been stuck in a lift before. But then I’ve never driven a car that looks like an aircraft carrier, dressed as a sailor, halfway across France before either... Hitchhiker’s Guide to the XG Despite a sense of humour failure at 1am, a

The glorious XG in all its, er, glory. And right, our view for many, many hours.

50 | CarDealerMag.co.uk

prison-rivalling dinner of bread and cheese, and five hours’ sleep, moods were lifted after a chat with Team Klarius. Klarius operates a network of parts distribution centres across Europe and since hearing about our situation had been working overtime trying to find us a replacement alternator. With help enlisted back home, they’d even managed to convince the French manager of a local parts centre to get out of bed on a Sunday morning to check the shelves for a replacement. And anyone who’s ever encountered a Frenchman knows just how incredible that is. Unfortunately there wasn’t one to be found and it was unlikely a solution would be found until the next day (Monday) when Europe went back to work. That meant Batch and I needed a lift. Surprisingly, we had several offers, but knowing the next leg would be seven hours spent in the back of a car, it made sense to pick the comfiest option. So it was with grateful thanks we accepted Wags Firmin and Rob Brendon’s offer of a lift in their Hyundai XG. The one-owner, V6 engined barge had a leather interior and acres of space in the back that looked like it had never been sat in. We got comfortable and settled in for the long haul. As we headed towards the Mont Blanc tunnel it began to dawn on me that for the first time in Bangers4BEN history we wouldn’t be making it to our destination under our own steam. With that came a wave of disappointment, but a renewed fight to ensure we found that elusive alternator and sailed back home in the Ark. The lift was also a blessing in disguise.

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FEATURE. On previous B4B events we’ve only really had the chance to chat to other competitors over dinner or breakfast, so seven hours in a car with two motor traders who’ve taken time out of their busy schedules to raise money for such a vital cause was a pleasure. Rob told us about how he made his living. Yes he bought and sold cars, but he doesn’t have a pitch, doesn’t have a website, and he certainly doesn’t advertise. You see Rob classes himself as a ‘car finder’, someone people who don’t like cars go to when they want a new motor. Over the years he’s built up a loyal band of buyers who simply tell him they want ‘a silver one’ or ‘an Audi’. Rob knows them, knows their lifestyle, so simply sets about finding them the right car. ‘I use the usual channels to find the cars,’ he tells Batch and I as Wags guides the Korean limo past some tooting colleagues in an Omega dressed up to look like the General Lee. ‘They trust me, they know I’ll find them the right car and then they tell their friends. I buy a lot over the internet from auction. It’s not stressful and that’s the way I like it.’ One thing is perfectly clear, Rob is certainly not stressed. There are no phone calls from frantic bosses or angry customers while we’re away. Just camaraderie between him and his lifelong friend Wags. Once Firmin gets chatting we soon learn he’s had an equally fascinating life. After 16 years service in the RAF as a Nimrod navigator he regales tale after tale of life at 36,000ft. The Nimrod role during the Cold War was to track

Russian nuclear submarines so they were ready to destroy them the minute war was declared. ‘The moment they left base we were tracking them,’ Firmin tells us. But how did you know they’d left base at all? I asked. ‘Oh, I can’t tell you that.’ Some secrets always stay that way... When Firmin left the service, he decided he wanted to do something completely different so bought a service and repair site, Combe Down Garage, near Bath. Now he has a team of mechanics working for him and likes nothing better than to send a customer away happy. ‘That’s why you’re always so busy,’ says Rob. ‘Once a customer came in and his car wasn’t firing on all cylinders,’ Firmin tells me. ‘I looked under the bonnet, saw a lead was loose, reattached it and sent him on his way. He wanted to pay me for it, but how can you charge for something as simple as that?’ ‘Actually, forget what I said before, THAT’S why you’re always busy,’ jokes Rob. And so the banter continued for the next few hundred miles. The pair’s stories were so plentiful, and their interest in our jobs so great, we travelled the entire seven hours and 300-odd miles without turning the radio on once. Who said the art of conversation was dead? Before long we were rolling into Maranello and seemingly on cue, a brace of Ferraris buzzed us and lapped the roundabout in

‘‘

front of our hotel. Savvy businessmen have set up Ferrari experience drives right next to the factory gates and convince countless petrolhead tourists to part with their Euros for a spin in a Prancing Horse. They’ve obviously got an agreement with the local plod too as their speeds would worry a few road safety campaigners. Ferrari North Europe, the UK-based arm of the supercar manufacturer, had kindly supported our event and they’d suggested their preferred hotel, the Hotel Maranello, which was adorned with memorabilia on every wall, should be our home for night two. Ferrari had also convinced the Cavallino Ferrari, the restaurant just across the road from its factory, to open especially for us, which was pretty good going considering it was a Sunday. Apparently Enzo Ferrari himself would eat in a dedicated room at the Cavellino every day and countless drivers have gorged themselves on cured meats and fine pasta in the typically Italian eatery. Our teams enjoyed a fantastic meal, complete with sparkling red Ferrari wine (they should stick to the cars) and Batch and I spent the evening chatting to the guys behind Dealer Auction and their friends, the Baywatch Sturgess team. Then, on the walk back, things took a surreal twist. ‘Oh my God, someone has parked a Frontera like ours on the roundabout!’ exclaimed Anthony

We got comfortable and settled in for the long haul in the back of the Hyundai XG.

Competitors’ cars were varied; and some were even light enough to ‘repark’...

Right: Batch, Baggott, Firmin and Brendon at the Ferrari gates 52 | CarDealerMag.co.uk

Museo Ferrari A look at the Prancing Horse legends of past and present IT wasn’t just the Cavallino restaurant that gave us a taste of the legendary Italian sports car maker. Ferrari North Europe’s UK team had also paid for all of the Bangers4BEN teams to have a nosey around the Museo Ferrari. This place is the most potent celebration of Ferrari imaginable, for within its four walls the marque has managed to archive the most important models in the firm’s history. There was a vast collection of cars from Ferrari’s racing history – everything from a 1948 example through to a very special display of Formula 1 cars from 1998 to 2009. Here the cars were displayed in a special room with subdued lighting, celebratory music and a wall crammed full of trophies. Complete with seating, it was like a chapel – and the visitors, clearly of Italian origin, sat transfixed and quietly mumbled, and treated the room as such. But the Museo was just one part of a town totally in love with the colour red – even the bus shelters were daubed in rosso corsa. I loved it.

The teams, were treated to a look around the stunning Museo Ferrari

James Batchelor Staff writer

Kennedy. He was referring to his bright red and yellow Vauxhall which had been thoughtfully parked slap-bang in the middle of the busy roundabout next to our hotel. ‘We’re in the middle of Italy, the chances of someone parking another red and yellow Baywatch Frontera on the roundabout are rather remote, that’s YOUR car!’ I told him. Turns out Kennedy had left the keys in the door and the first team back from the meal had helpfully decided to valet park it, lock it back up and hand the keys into reception. Genius. Alternative alternator Just as the previous evening had ended with a surreal incident, I really shouldn’t have been so surprised at the site that greeted me as I opened the balcony doors at what was another ungodly hour. There, parked horizontally between two cars, was the Cambridge Jaguar Fiat Sciento, wedged tightly between the XG and a Honda Accord. Clearly, the combination of Becks beer and a car that was light enough to lift had been too much of a temptation to resist. Still, it made me smile nearly as much as the Frontera incident. As well as arranging the meal, Ferrari had treated our teams to free entry at the Museo Ferrari, its museum documenting its incredible history. Chock-full of cars from the manufacturer’s

amazing back catalogue as well as priceless artefacts from its endeavours in motorsport, it was a real treat for our teams. Unfortunately, while everyone else was enjoying the collection, I was 200 metres down the road, talking pigeon English to a chainsmoking Italian auto factors product picker trying to explain why we needed a Volvo alternator in a country full of Fiats. It was thanks to our Klarius friends that I was here. As they’d promised, first thing in the morning they’d extended their hunt for our part and one just so happened to be found a stone’s throw away from the Ferrari museum. Some 270 Euros lighter we finally had our solution – now all we needed was to transport it back to France and persuade the AA men to fit it. Once again we hitched a lift with Wags and Rob. The pair didn’t mind putting up with us as long as we didn’t mind stopping for a leisurely Italian lunch along the way. Sounded agreeable to us, so that’s exactly what we did. Our jinx, though, was following us. Only a few miles out of Maranello, the faultless XG developed a strange shuddering that we could all feel through the floorpan. It was like a loose wheel, or a bulging tyre, but after stopping to check we couldn’t find a fault. Wags soon realised it was actually a sticking brake pad, which was why it came and went. Some Schumacher-style

weaving was just enough to loosen it from the disc and alleviate the judder. Meanwhile, we could only apologise for breaking another car. Back in France, the AA patrols had our car fixed in a matter of minutes. The alternator on the S80 is easy to get to so it was replaced with ease. ‘It was just one of those things,’ explained AA man Andy. ‘You could fully service a car and still not spot a faulty alternator. ‘It’s impossible to know when one will fail. You were just unlucky.’ With the heavy lump of metal now doing its job and charging the battery, our trip home was looking up – The Mighty Ark may make it back after all! Stowaways An evening meal and awards presentation to the best-dressed car – Aston Barclay’s graffiti-covered Alfa 147 – and best fancy dress (GForces’ 70s Cops) – was followed by a night drinking the French bar dry. Oh, and some more mechanical gremlins. While most of the teams were enjoying dinner, the AA patrols were at it again, trying to fix yet another Volvo. Mark Cranmer and Leyton Cooper of ACF Car Finance hit trouble in their Ghostbusters 850R when it stalled in the middle of a tunnel. With the help of a Marshall team they managed to narrow CarDealerMag.co.uk | 53

FEATURE. down the issue to the fuel pump. When I joined them outside, the assembled mechanics were trying to make the Volvo a new pump from a motorcycle one found on the back of one of the AA trucks. It’s all a bit Scrapheap Challenge and unfortunately doesn’t have the desired result, despite some valiant efforts. The following morning, the ACF team, with the help of a French hotel receptionist, call around some local Volvo dealers to try to find a part. One is eventually located, but at 570 Euros (more than the team paid for the car) Mark and Leyton decide the game’s up, agree to the Volvo being towed home and ask to hitch a lift with us. Mark is dealer principal of ACF Car Finance’s Manchester site. With five salesmen and sales of around 20 cars a week, he deals with a very busy subprime market. His stories are fascinating and from the back seat of the Ark Royal he gives us an amazing insight into his world – one that’s completely alien to anything I’ve ever heard about before. The company operates six sites across the UK and specialises in getting buyers into cars who wouldn’t normally be able to get credit. No cars are advertised on the firm’s website, only calls to action to draw customers into the showrooms. It’s there they’re found the right car and a finance package to suit. Needless to say these are normally sold on a ‘price per week’ basis with average rates of APR that start with a four or in some cases even a five. Mark’s sales techniques are pretty legendary too. ‘One that never failed to work was when I was walking up to a car with a customer I’d say “What car’s car of the year”,’ he explained, seemingly referring to the consumer magazine’s annual accolades. ‘It didn’t matter if it was a Daewoo or Proton, I’d always say it. It impressed them and they thought they were buying a winning car. Only once did a buyer question me and asked if it really was. Then I simply replied, “No, I was asking you, what car’s car of the year?” It’s not what you say but the way you say it...’ Mark kept us entertained for hours with

Aston Barclay, left, won best-dressed car for their Alfa 147 and GForces won best fancy dress.

tales like that, many of which are completely unprintable, but all gave Batch and I an insight into a very different world of car sales. His colleague Leyton is the company’s used car buyer. Responsible for stocking the firm’s sites with cars its target market can not only afford, but will want too. Buying stock around the £3k mark to be sold at prices up to £6,000, Leyton spends his days at auctions, talking to remarketing firms and keeping an eye on market trends. As we approach Calais his phone rings with an offer of a trailer-load of Renault Clios on 58-plates for around £3k. ‘They are perfect for us, we’ll buy the lot,’ he tells me. ‘My job is all about reacting quickly and making sure the guys have the cars to sell.

Wedded bliss Bangers4BEN: The honeymoon BANGERS4BEN usually encourages some mad entries from people doing something special for charity. But we couldn’t have made up one team’s entry in Bangers4BEN 2011 – a newlywed couple! HPI’s operations director Andy Entwistle and his wife Toni ditched the normal protocol of going somewhere sunny and hot for their honeymoon. Instead the couple chose to spend their special honeymoon with us. ‘Toni was the one who said we should treat Bangers4BEN as our honeymoon,’ Entwistle said. ‘Taking part in Bangers4BEN on your honeymoon is definitely going to make a special event even more special.’ 54 | CarDealerMag.co.uk

The newlyweds competed the 1,700-mile trip in a 17-year-old BMW 520. Entwistle’s plan was for the pair to go dressed up in a wedding dress and suit. ‘But Toni was having none of it, so we scrapped that and we went as the Wacky Races,’ he added. The Entwistles did turn up at Dover with the car dressed with white ribbons and a ‘Just Married’ sign on the boot-lid though. We wish them a long and happy marriage.

‘We can be a little reactive at times, but we’re getting better.’ At Calais there’s a final chance to chat with the competitors and in the ferry queue talk quickly turns to what we’ve got planned for 2012. Bangers4BEN has become a hugely popular event and with the support it’s received this year it makes sense to try to make it even bigger and more beneficial next year. And it was our ride with Wags and Rob that gave us the initial idea for next year’s challenge. Wags is a huge supporter of children’s charities in Romania, a country where the poor are still desperately needy. He suggested we burnt all the fuel for a reason, filling the cars taking part with toys, clothes and other supplies and delivering them to those that need it most in Romania. The cars will still be sold in aid of BEN, so we’ll be supporting two great causes in the process. So that’s the plan, and if you’re interested get in touch with me ASAP to be first in line for information when we have it. Rolling off the ferry back in Dover there’s a moment of quiet in the Ark as the four of us reflect on what’s been an eventful adventure. I start to think about the amount this mad road trip will raise for BEN, both in terms of sponsorship, and when the cars are finally sold by Aston Barclay. I also can’t fail to smile at thoughts of the cracking camaraderie, the incredible highs of finding an alternator buried deep in an Italian parts warehouse, and the devastating lows of realising we really were stuck in an ancient French lift. All will make this year’s rally one that’ll be very hard to forget. Well that, and the rash a £15 polyester sailor outfit gives you after four days on the road... Overleaf: The bangers go to auction

FEATURE. THE AUCTION This was the last part of the colourful jigsaw puzzle. Behind the fun, the breakdowns and the camaraderie, the auction is the serious part of Bangers4BEN – as cars are converted into cash. Aston Barclay had kindly offered to host the event at their Chelmsford site and had 26 Bangers4BEN cars queued up and waiting to go under then hammer. Only BCA’s Alfa Romeo 147 and Crystal Communications’ Alfa 145 failed to turn up – the former was sold at another auction and raised £1k, and the latter will be sold separately. Team Klarius decided to keep hold of their Safrane and entered a Scenic of the same vintage. Even ACF Car Finance’s 850R made it. Some of the teams had washed and prepped their cars to look their best in the busy auction hall one, while a few – including our Ark Royal – had turned up still wearing a blanket of dead French flies and dirt. That didn’t seem to stop the bidders. To the tune of B4B competitor David Scarborough’s voice on the mic, punters crammed themselves into the snazzy auction room.

Fundraising A special thank you Special mention must go to the teams that took the time and effort to raise additional sponsorship for Bangers4BEN. Most notable of the lot was Marshall Motor Group’s Mountsorrel Honda outfit who handed over a whopping £3,481.71 extra to BEN! Close behind were ACF Car Finance raising an additional £3,065.45, while another Marshall Motor Group team, Cambridge Jaguar, added £1,080. Aston Barclay chipped in with £862, Sturgess Jaguar £800 and Blackbird Communications a further £240. All their efforts are applauded. The team that made the most money was Marshall Motor Group Bury Ford for the second year running. Devoid of its Star Wars-inspired stickers, the team’s Seat Toledo, piloted by Dez Thompson and John Cook, made a fantastic

£1,625 prompting many competitors to wonder how the duo can be beaten. Following closely behind was BCA’s Alfa Romeo which made £1k, while GForces’ Volvo V70 – the only car that managed to live up to the Swedish brand’s good reliability perception – followed with £650. Rob and Wags’ Hyundai XG wiped its face at £500, Aston Barclay’s three cars all returned profits, and honeymoon couple Andy and Toni Entwistle’s BMW 520 sadly made a loss of £125. However, the biggest shock was our Ark Royal. Even with Scarborough handing the mic and gavel to James Batchelor we struggled to generate interest and had to let it go for £225. That was a bitter pill to swallow. But we took comfort at even the hardest faced members of the motor trade failing to contain a smile as it rolled into the auction hall, Ensign flowing. However, perhaps next year we won’t go quite so mad... [CD] Thanks to... TSL Marine Services for helping us prepare the Ark Royal, Aston Barclay for hosting the auction, the AA and everyone who took part.

The Results Company Team Vehicle Bought For Sold For Profit Bury Ford A New Hope Seat Toledo £500 £1,625 £1,125 BCA BCA Group Alfa 147 £0 £1,000 £1,000 GForces GForces 2 Volvo V70 £0 £650 £650 GForces GForces 1 BMW 528i £0 £600 £600 Cambridge Jag Jag Mafia Fiat Seicento £500 £1,025 £525 ACF Car Finance ACF Car Finance Volvo 850R £300 £775 £475 Aston Barclay AB Westbury London Taxi £500 £925 £425 Knebworth Vauxhall Not too Fast Renault Clio £500 £900 £400 Peterborough Toyota So FARrari so good Vauxhall Omega £0 £400 £400 Klarius Group Ltd QH Dragons Renault Scenic £300 £500 £200 Bayliss Cheltenham Baylis (Vauxhall) Vauxhall Astra £200 £350 £150 Aston Barclay plc Aston Barclay plc Alfa 147 £400 £525 £125 Sturgess Jaguar Sturgess Jaguar Vauxhall Frontera £400 £500 £100 Aston Barclay Barclay Bangers Mazda MZ5 £400 £500 £100 North Oxford Garage NOG BMW 520i SE £397 £450 £53 Autotrade-mail Autotrade Mail Jaguar XJ £500 £550 £50 MMG Harrogate The Phoenix Honda Accord £400 £425 £25 RC Brendon Dodgy Motors Hyundai XG £500 £500 £0 Mountsorrel Honda Great Place to Work Honda Accord £300 £275 -£25 The AA The AA.com Fiat Coupe £400 £350 -£50 The AA AA VW Sharan £300 £225 -£75 Dealer Auction Dealer Auction Volvo V40 £500 £400 -£100 SJRA Consultancy Blackbird Comms Ford Escort £450 £350 -£100 HPI Ltd HPI BMW 520 £400 £275 -£125 York Honda The Lost Boys Renault Espace £400 £250 -£150 Car Dealer Magazine Car Dealer Magazine Volvo S80 £500 £225 -£275 Enterprise Rent-A-Car Smokey & the Banager Toyota Avensis £500 £150 -£350 Crystal Communications Crystal Communications Alfa 145 £200.00 Not sold CARS & BUYER’S FEES TOTAL £15,324.96 SPONSORSHIP MONEY RAISED £9,529.16

Grand total: £24,854.12

56 | CarDealerMag.co.uk

You can see a video of the auction on our YouTube channel by typing bit.ly/ b4bauction into a web browser

Calling all car dealerships! Get rewarded for your environmental and sustainable best practice?

Launching 15th November 2011 Awards dinner to be held at the

Heritage Motor Centre July 12th 2012 Hosted by Robert Llewellyn

Do you have a green policy? Are you green and want to be seen? If you would like to raise the profile of your dealership then enter the Green Apple Awards for Car Dealerships.

Enter online NOW:

www.greenappleawards.com/CD2012 Our supporters and partners

AWARDS.

58 | CarDealerMag.co.uk

Green Apple awards

Robert Llewellyn

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My interest in green motoring wasn’t from the standpoint of hating cars and that they should be banned. It was simply a gut feeling that something wasn’t right.

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The Red Dwarf star and EV evangelist is the face of the Green Apple Awards for Car Dealerships. James Batchelor chats to him about why you should enter the gongs

wning, buying and driving an electric car is no bohemian dream for Robert Llewellyn, comedian, actor, electric car fanatic and the face of the Green Apple Awards for Car Dealerships. If anything in the world of cars is hippie-ish it’s the thought that the black stuff is going to run out, believes the Red Dwarf star. ‘If you take someone like Renault-Nissan CEO Carlos Ghosn and call him a hippie, you’d be really stretching it,’ jokes Llewellyn. ‘I don’t think I have met someone less hippie-ish. Ghosn is a tremendous guy who is very realistic and knows what he is doing, as are the other car manufacturers who are involved with green motoring. In fact, if you had to call something hippie-ish it would be oil and the people who keep saying it’s going to run out. It isn’t – it’s just going to become phenomenally expensive.’ Beneath the jokes, green motoring is a deep-rooted interest for Llewellyn. ‘It’s been a life-long interest,’ he says. ‘It’s probably due to me coming of age at the time of the oil crisis of the ’70s and it became very apparent to me then that the way we were organising our world wasn’t sustainable. I couldn’t put my finger on this interest. ‘I grew up loving cars, no doubt fuelled by living so close to Silverstone, me go-karting and my brother involved in motorsport, so my interest

in green motoring wasn’t from the standpoint of hating cars and that they should be banned. It was a gut feeling that something wasn’t right.’ Llewellyn admits he couldn’t do much about this gut feeling at the time. In his own words, if he wanted to drive an electric car he would have had the choice between a mobility scooter or a milk float, but the feeling still remained. ‘I cycled a lot, caught the train and bus and there was a period of time when I refused to get into a car. But a ride in a very powerful prototype electric car about 10 years ago in California was the pivotal moment for me as I realised that an

Green Apple awards

What are they?

Car Dealer is the official media partner for the Green Apple Awards for Car Dealerships which aim to find and celebrate the greenest dealers in the country. The hunt is on for dealers who are embracing green thinking and endeavour – whether it is remembering to turn the lights off or installing a roof full of solar panels. There are a number of categories dealers can enter to show off their green stripes, full details of which are overleaf. For more information on how you can enter, type bit.ly/GreenDealer into a web browser.

electric vehicle needn’t be a milk float. ‘I did some research about electric cars, how the car running on oil became popular and the industry around it, and disruptive technology. Electric cars have changed my life – there’s no doubt about that. They’ve changed my life in the same way the internet has changed television.’ That ride in an electric car has resulted in Llewellyn driving them for the past two years. He’s never run out of power, claiming it would be ‘very awkward to ask a stranger for some electricity in the middle of Wales’ and uses solar panels to charge up his Nissan Leaf. ‘With the panels I think I will generate between 50 and 60 per cent of the electricity my Nissan Leaf uses over the course of a year,’ he says. ‘In fact, today I have generated 5.94 Kw hours!’ But it’s not just electric cars that enthuse Llewellyn. In fact any type of green motoring, including hybrid and efficient petrol engines, is of interest. ‘I said that ride in a prototype car was the life-changing moment, but perhaps it was the Toyota Prius,’ he adds. ‘My first experience with the Prius was in America. I came home and I had to have one. I’ve always been a Volkswagen Golf fanatic and have had a GTI, a VR6 and a V6 4Motion, and at the time I had a chipped Golf R32. I traded that in and even the Toyota dealer couldn’t believe what I was doing.

Car Dealer Club members get free legal advice worth £199. Sign up at CarDealerClub.com| 59

FEATURE.

Green Apple awards Pic: Carpool on Dave

‘There was a moment of “what am I doing?” but as soon as I started passing petrol stations without having the need to fill up, I loved it.’ Llewellyn may well be a well-known figure and an evangelist of green motoring, but many other consumers are making the same lifestyle changes and feel as strongly as he does. He explains: ‘I very much approached green motoring from energy efficiency and the cost of driving because I feel I am not scientifically literate enough to defend the climate change position – although I am in complete agreement with it. I cannot be bothered to get into the “Clarksonian” argument that climate change isn’t happening. It is and we have to do something about it – it’s obvious.’ It’s one thing that car manufacturers and consumers are embracing green motoring, but car dealers should be doing the same, says Llewellyn. ‘Car dealers are in a prime position to lead the way – in fact I think they could be at the forefront of it,’ he says. ‘Certainly Nissan dealers are moving in the right direction as I use their dealerships to charge up my Leaf. The people who work at those dealerships are really enthusiastic, and that is really important. But even they have not fully embraced the advantages of installing solar panels as this is an easy way for dealers to start becoming more efficient. ‘Fitting solar panels to the roof is a brilliant way to save money, and considering a lot of dealers have a large site and therefore large roofs, this is a way of saving money and embracing green thinking. ‘I also think that this enthusiasm would filter down through the staff and on to the customer. In the next few years, most manufacturers will have electric cars or hybrids. The challenge for dealers is how to communicate this effectively to customers.’ With advice like this, it’s clear Llewellyn has a passion for the motor industry becoming green. But meeting dealers and those involved with green endeavour is his reason for backing the Green Apple Awards for Car Dealerships. ‘I wanted to get involved with these awards because it is an area I am fascinated in and I am intrigued to meet the people and dealers involved. I’ve hosted many awards in the past and I have been told not to mix with the audience or the people involved. But that’s what I want to do – try to keep me away from them!’ Llewellyn is supporting the Green Apple Awards for Car Dealerships for the same reasons we have put our name to them – we want to celebrate the dealers who are embracing green thinking and endeavour. The motor trade needn’t be a sector that is stuck in the dark ages by having an ignorant attitude to caring for the environment. Being green doesn’t just have to be bulldozing your used car lot and installing a wind farm – sticking a few 60 | CarDealerMag.co.uk

Green Apple awards

The categories

There’s a whole variety of categories dealers can enter. They are: 1. Best eco building – retrofit or new build 2. Best eco vehicle facilities 3. Best internal campaign to green the dealership and improve sustainable business processes 4. Most innovative recycling of automotive materials initiative 5. Green motoring advice 6. Energy efficiency 7. Green innovation 8. Best green marketing campaign 9. Best local community initiative 10. Greenest small dealership group – under 10 outlets 11. Green Car Maker of the Year 12. Best Electric Car 13. Best Eco City Car 14. Best Eco Family Car 15. Best Eco Executive Car 16. Best 4x4 Eco Car solar panels on your roof or making sure that the lights in the finance department are switched off are just as important. However, it is not just about dealers having the correct morals – dealers need to start making their businesses more environmentally friendly. Take the Kyoto treaty as an example or the government’s targets to produce 15 per cent of the country’s energy from renewables within nine years, or Europe’s objective stipulating that of the energy produced per country, 20 per cent will need to be renewable by 2020. ‘There are tens of thousands of franchised and independent dealerships across the UK, most of which run large dealerships with a lot of glass and light. They are a prime target for reducing the carbon footprint, in line with key governmental targets including the Kyoto Protocol treaty,’ says the Green Apple Awards for Car Dealerships’

event organiser Richard Collins. ‘So we have also decided to create these awards due to discussions with the British Research Establishment, and we thought this was a good time to specifically concentrate on the automotive industry. We also feel now is the right time – people are receptive towards looking at and making their businesses green and are financially rewarded for that. ‘There are some dealers who are dealing with these issues head-on, there are some dealers who are having eco retro refurbishments, while others are having complete rebuilds. Everyone is falling over themselves to try to tell everyone what they are doing, and what we have noticed is that consumers are starting to make purchase decisions based on the green credentials of the dealer they are considering buying from.’ With consumers beginning to know more about hybrid, electric and more fuel-efficient motoring, and starting to want to get involved with it, now is the time dealers should be getting their green thinking caps on. There are benefits for dealers who enter these awards. A large amount of PR and marketing will be generated about their businesses, and there’s also the possibility of winning more business from impressed customers. There’s a wide range of categories dealers can enter (see left). Both the awards ceremony and the judging will take place at Gaydon’s Heritage Motor Centre. Car Dealer, along with an expert panel of judges, will be deciding what the greenest cars currently on sale in Britain are and the winners of the other awards. Entries are being accepted now, and any dealer, whatever size of operation, can enter and be at the forefront of a motor industry that’s got its eyes firmly fixed on changing for the better. For more information type bit.ly/GreenDealer into a web browser. [CD]

focus on.

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FINANCE

Taking a positive and imaginative approach W: carlylefinance.com T: 0844 7704438

t would be accurate to say that right now is the best time to save money. Paying attention to where you can save cash and improve your bottom line is a win-win scenario whether the economy is tough or not. It’s simply good business practice. Finance firm Carlyle is of the same mindset too, and they believe dealers should be adding value to their businesses. ‘Now is always the time to focus upon best value, a subtle difference to just cutting costs,’ says Carlyle Finance’s head of sales and marketing Karl Werner. ‘It is certainly true that in austerity Britain, consumers are ever mindful of their expenditure, but there are certainly car buyers in the market and it is in reaching them and serving their needs more effectively that best value can be extracted.’ Dealers have already shown how they can nimbly adapt to market demands by offering the type of stock that buyers want, but there remains scope to reach the market and finance has a key role to play when used imaginatively. We are all aware of research that reveals 94 per cent of consumers look into their planned purchase online before ever contacting a dealer. ‘It is a simple reality that means that online is where dealers must spend their marketing money, pulling away from traditional media, unless on occasion that can be proven to work more effectively,’ says Werner. ‘Vitally, when it comes to marketing online, there must be a strong finance presence. Consistently, research informs us that before searching for their chosen car, consumers research their finance options, and with bank finance in short supply, having a high-impact finance offer on-line, a dealer can create more customer interest, inquiries and sales.’ However, this does not mean just mentioning finance being available when the customer is sat in front of you during the deal, or the logos 62 | CarDealerMag.co.uk

of suppliers adorning your showroom stock’s windows, it means providing high-quality information. And, an even simpler way is to offer it to every customer. Carlyle Finance can speak with some authority when it comes to saving money. During the credit crunch, the 40-year-old business grew and increased its finance provision with lending almost doubling between 2008 and 2010, and the company took on more dealers. ‘Until the credit crunch, point-of-sale finance had been declining as personal loans from banks and direct lenders took increasing market share,’ explains Werner. ‘Although it is worth pointing out that while the wider market fell, Carlyle Finance grew consistently, demonstrating that a different approach clearly could deliver a better performance. ‘The credit crunch has changed this, at least for the short term. The availability of personal loans remains restricted and increasingly rate for risk underwriting means that the rate offered is certainly not always the rate the customer will get. ‘In short, many consumers need finance at the point of sale, or they will not be buying the car!’ And Carlyle has the products to offer. There’s hire purchase, a lease purchase agreement called ‘Breeze’, ‘Time Out’ which allows customers to take a one-month payment break during each year of the agreement, and another hire purchase product called ‘Motor Select’. The firm also offers carloanadviser.com, which is a unique approach that can really show the way for customers. In essence, it provides dealers of all sizes with a virtual business manager, and can help customers decide how they would like to finance their car on a dealer’s website. While these products can save money in the long run, Carlyle Finance also has a product that takes the process of saving cash to the next level. ‘My Carlyle Discount Shopping’ is a service available to dealer staff and their Carlyle Finance customers, and

offers discounts on a vast array of domestic and leisure services – from Marks & Spencer to Thomas Cook with discounts of between five and 10 per cent. ‘The pressure on the consumer’s disposable income is a real issue that will inevitably impact the customer’s decision to change,’ says Werner. ‘Dealers need to provide demonstrable means of easing the financial burden, making it easier for customers to change car when they really want to – and this is now very achievable and it costs nothing. ‘This was brought into stark context by research published for the BBC Panorama programme that highlighted the issue,’ continues Werner. ‘Today, the average employee takes home £1,088 a year less than two years ago when the sum is adjusted for

‘‘

The pressure on the consumer’s disposable income is a real issue that will inevitably impact the customer’s decision to change car. Dealers need to provide demonstrable means of easing the financial burden.

‘‘

inflation. A fall in real income is meeting significant rises in motoring costs, notably insurance and fuel costs. My Carlyle Discount Shopping can enable dealers’ customers to save a typical customer £1,183 per year. This is the type of innovative thinking that the industry needs, to make it easier for customers to make a buying decision.’ Another example of Carlyle introducing services to help dealers save time and, more importantly money, is MyCarLocator. Launched this year, the service enables dealers to electronically add their stock to the Carlyle website and make it available to more than 100,000 Carlyle customers for a small monthly fee. It’s also fully searchable and provides a valuable new facility that enables customers to see both the cars on offer through Carlyle dealers, but also the monthly finance payments to make a purchase. Werner is clear why dealers should be using Carlyle Finance to help them save money. ‘Carlyle Finance has grown by combining innovation with the very highest quality of service,’ he says. ‘The marketplace is highly dynamic and success requires a positive and imaginative approach. ‘Simply offering traditional finance in a traditional manner will achieve a certain level of results, but by being more imaginative and offering a wider proposition, so much more can be achieved. ‘Just one motor finance company is offering that extra level of support and imagination with products that are right for today’s operating environment and economic conditions and it is a business that is growing rapidly – Carlyle Finance.’ CarDealerMag.co.uk | 63

focus on.

guide to saving money

DEALER MANAGEMENT

Turn to new technology and reap the rewards W: pinewood.co.uk T: 0121 697 6600

ou don’t need us to tell you that it’s a tough market out there at the moment. You have probably taken some steps already to save money and improve your bottom line, and they are probably some of the commonest measures people are turning to in order to weather this post-recessionary climate. But, in the words of the teacher you hated at school, more can always be done – and perhaps a new approach is the best way. Dealer management systems are the lifeblood of dealers’ businesses. A good one can make your operation a stress-free one and can improve overheads. A bad one can make you lose money and can, in fact, be more of a bad thing than an invaluable tool. There is one company that believes it can help dealers though – Pinewood. It’s been helping dealers for two decades with dealer management systems, and has pioneered the delivery of softwareas-a-service for more than five years. In other words, they know what they’re talking about. ‘A DMS is only a small percentage of dealer costs, but some providers are costing dealers because they are unsuitable, and dealers are having to ‘‘plug the gap’’ with expensive fill-ins,’ said Pinewood Technologies’ managing director Neville Briggs. ‘Often it is all too easy to focus on running costs, when other contributing factors show the full extent of the cost of a dealer management system.’ These additional costs that are paid to facilitate the use of a DMS can include paying for core functionality, hardware support and associated sundries to run, communication technology – such as internet and phone lines – and human costs to manage the system – although these are often hard to quantify. Possibly worse is when a DMS does not suit a dealer and they have to put their hand into their pocket to plug the gap. ‘Costs associated with filling gaps that a core DMS fails to provide include paying for other systems to boost dealers’ 64 | CarDealerMag.co.uk

access to functionality,’ explains Briggs. ‘In some cases this includes vehicle health check systems (VHC), internet lead management and credit card processing. It can also include duplication costs of data input due to multiple systems (including cost of fixing errors). For example, without integrated VHC or manufacturer integration, how does a dealer feedback the information into the system? The human cost involved and associated time can become a large wasted cost.’ But perhaps the most difficult to quantify in terms of dealers losing money, says Briggs, is the cost associated with not performing actions that would improve the effectiveness of a dealership. ‘For example: VHC – this is a lost revenue by effectively identifying required work, and the service that VHC provides to your customers knowing their car has been fully serviced. Another is feedback and the cost of not knowing what your customers think of your dealership – this can result in a clear reduction in overall satisfaction, and risk of losing future business. And also, missed targets – efficiency losses have an impact on effectiveness, and the ability to hit targets set.’ Happily for dealers, there is a solution. Pinewood’s Pinnacle product can provide dealers with the right DMS that suits their business and can help them stop losing money. It was the first and is one of just a handful of cloud/SaaS DMS systems and, in cost terms, it can deliver a number of money-saving solutions. ‘First of all it’s an easy, low-cost option,’ explains Briggs. ‘It’s scalable and reliable, and can grow or contract as dealers need it to. It’s a single source solution – it does everything your dealership/dealer group needs with no bolt-ons, includes hosting and security – and installation and training is fast and effective.’ The latter can really save money, as Pinnacle is a pay-as-you-go service meaning low

upfront and ongoing costs are tailored to dealers. There are regular releases – achieved automatically with the minimum of dealer work – and hosting and security are included in the price. But, it’s not just about saving money – Pinewood’s Pinnacle DMS can maximise revenue too. The Pinnacle system provides integrated, flexible marketing and prospecting which is fast, low-cost and effective and has customer feedback mechanisms to meet issues head-on – letting dealers identify and tackle problems as early as possible. It also has a continuous and accurate realtime view of dealers’ businesses by putting them in control, and has better service levels through better technology. ‘It’s a DMS that makes a difference to the customer experience,’ says Briggs, ‘and has features including revenue maximisation tools such as VHCs – bringing more business into the dealership and benefiting customers too. ‘There are dashboards and spend mapping –

running costs, dealers’ technology-gap costs, and avoidance costs. Pinewood foresaw years ago that hardware would become a commodity and that dealers would be best placed to buy technology from hardware retailers, in order to control or reduce adoption costs.’ The second strategy stream is the firm’s continual investment in a fully integrated product that increases dealership effectiveness. ‘This is the checking for recalls at the point of booking, automatically, from the manufacturer – thereby removing inefficient use of time in checking separate systems which can be better used in improving the overall customer experience simply by spending more time with each customer.’ By working with a DMS provider who are as thorough and switched-on as Pinewood, taking the next step in cutting costs might not seem so daunting…

The Pinnacle system provides integrated, flexible marketing and prospecting which is fast, low cost and effective. It has customer feedback mechanisms to meet issues head-on.

‘‘

new technology that delivers real benefits.’ Pioneering new technology is a trait of Pinewood, it is fair to say. ‘Pinewood is a results-driven technology leader. The message is that this is a leading-edge DMS product but the technology is not frivolous – it very much focussed on minimising costs and maximising revenue,’ remarks Briggs. So, there are innovative technologies such as integrated Chip & PIN payments, Facebook integration allowing dealers to reach more customers at a lower cost, iPhone incorporation so a dealer’s message can reach a customer on the move, and iPad compatibility for a seamless customer experience. Why should dealers be using Pinewood’s Pinnacle system? Simple, believes Briggs: ‘Pinnacle is a DMS that uses commoditised technology to reduce costs to the dealership. Our strategy includes two key streams, and they are reducing dealer

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CarDealerMag.co.uk | 65

focus on.

guide to saving money SUPPORT

Fine-tune your sales data W: experian.co.uk T: 0844 481 8000

‘‘

What we’re able to do is provide, at no cost, an audit of the dealer’s data.

‘‘

ith new car sales fluctuating every month and customers being fussy about how they spend their pounds, having a business partner who can assist with the nitty gritty details is a necessity in improving dealers’ businesses and helping them save money. Luckily Experian can help out. In the UK, the firm supports a host of businesses and firms across a raft of different industries in strengthening their offering to customers, and making sure they don’t fall foul of headaches like credit risk and fraud. One of their key strengths is helping out dealers in customer retention and with vehicle information. ‘Dealers are very interested in a number of dimensions around the acquisition of new clients, but more importantly, the retention of existing clients,’ explained Andrew Ballard, head of product – automotive, at Experian. ‘That might be across service, aftersales and part sales – so, once the client is a vehicle purchaser new or used, dealers are interested in making sure they are not losing out on that retention opportunity.’ But dealers’ efforts might be thwarted by old data, believes Ballard. ‘What we see among dealers is a reliance on out-of-date information which is used to try to keep in contact with previous customers. Certainly from our point of view, one of the big things for dealers is the intelligent use of data the dealer has already spent time and money acquiring. ‘That and making sure they don’t waste that investment by not doing things like making sure the customer lives at that address, they’re not deceased, or they still own the car the dealer might have sold to them two or three years ago.’ Out-of-date information might not sound that crucial, but it can be. Have you got a special offer you want to shout about to your customers? Do you have a new car you want a certain proportion of your customers to take interest in? That campaign can lose money if you contact the wrong people. ‘What we’re able to do is to provide, at no cost, an audit of the dealer’s data,’ explains Ballard. ‘That can either be data that they are thinking about running a campaign with, or it could be a sweep of a dealer’s entire database.’ The latter could be on a number of fronts, says Ballard: ‘It could be making sure the data is compliant from MPS and TPS screening, but also what we can do is to exclude people from a

suppression point of view that perhaps don’t own the car the dealer thinks they do. ‘That audit can go back to the dealer with no up-front cost – it is purely saying we have assessed your data, and these are things we have found, and within that there will be a quotation to progress further with that cleanse to suit their needs.’ It’s proving to be a very popular option with dealers who can see value in Experian’s help and realise that they will save money by targeting their

campaigns to the correct audience. They can also supplement the campaign too to make it even more effective. ‘If in cleansing a dealer’s data we have removed a quantity of people a dealer would otherwise have marketed to, we can supplement that campaign with names and addresses of people in their geographic area, and with propensities – people who have a stronger propensity to buy a new or used car. We can not only cleanse the data they already own, but supplement it with additional information so they can get the maximum value out of that marketing activity.’ That’s not to mention Experian being able to help dealers save money with vehicle history data and credit risk management by providing services such as provenance checks to make sure dealers can make the best business decisions in uncertain times. CarDealerMag.co.uk | 67

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focus on.

guide to saving money Online advertising

No results, no charge W: netcars.com T: 0800 138 9135

‘‘

We want to help dealers realise that they can really harness the power of the internet.

‘‘

o outlay, no investment, just results. That’s what Netcars.com is offering car dealers… so it’s no surprise that more and more of you are getting involved. It’s been a hectic year for the team behind the attractive and effective website, which pushes highly-targeted traffic through to specific vehicles on dealers’ own sites, and only charges by results. But Netcars aren’t just interested in the success of their own website, although that is obviously at the heart of what they’re all about. They are busy working with dealers to encourage them to harness the power of the internet and make it work to their advantage – saving them money and making money at the same time. Marketing director Louis Rix told us: ‘We’re a new brand, but in the last 12 months we seem to have got a foot in the door and we have been working hard to get our name out there. ‘The key thing about us is that we’re different. Other websites offer the same business model: You pay per car per week, or a set amount per month. ‘Our business model is a no-brainer for the dealer. There is simply no investment for the car dealer to make. We list all their cars for free and there are no contracts. The dealer only pays when we deliver highly-targeted traffic to their website. ‘It’s a unique business model and is based on how Google have been operating.’ That’s all pretty impressive stuff, and Netcars walks the walk as well as talking the talk. Five of the top 10 dealer groups in the UK are working with the company. For smaller, independent businesses, Netcars offers something more: Free websites – and an impressive 50 of these have been established so far. It’s all part of Netcars’ mission to establish itself as the dealer’s friend, and this goal extends to working with dealers to help them take advantage of the internet in other ways. ‘Our industry is a long way behind other sectors,’ said Rix. ‘We want to help dealers realise that they can really harness the power of the internet and make it work for them.’ Social media is of course part of the communications revolution, and Facebook and Twitter have emerged as the two main players. ‘Imagine, if you as a customer tweeted that you were in the market for a Vauxhall Vectra, say, and then your local Vauxhall dealer got in touch with you after seeing that tweet,’ said Rix. ‘A sale could

be made purely because of Twitter. Social media can have a massive impact on a dealer’s bottom line so we really try to encourage dealers to use Twitter and Facebook.’ There are other tools that are available such as Google pay-per-click and Google Analytics which are free and can be used by dealers to track the

performance of their website. Rix is a fan of both. ‘Google Analytics can tell you how many hits a website has had and where they have come from. It can also highlight potential problems. For instance, if you found out that a specific page had a high rate of abandonment, you could deal with that. It’s a very good piece of software. ‘Email marketing is something else that dealers should be doing. It’s quick and cheap, although some still prefer the big red book! Dealers ideally should be emailing their customers on a quarterly or half-yearly basis.’ But back to the main site and it certainly seems to be going from strength to strength. Rix concludes: ‘Here at Netcars we have passion and enthusiasm for what we do. We’re different, we’re new and we believe in what we’re doing.’ Maybe it’s time you tried something new too... CarDealerMag.co.uk | 69

focus on.

guide to saving money BUYERS

W: overdrivenortheast.co.uk T: 01670 789 292

f youâ&#x20AC;&#x2122;re a joiner, you need tools to do your job. If youâ&#x20AC;&#x2122;re a car dealer, you need cash. Thatâ&#x20AC;&#x2122;s the phrase Jason Miller, director of Overdrive North East, uses to illustrate the role his company plays in making sure the wheels of the motor trade keep running smoothly. And if you operate in south-west Cornwall, or maybe on the remote west coast of Wales, donâ&#x20AC;&#x2122;t be put off by the name. Although the company is based in Morpeth, Northumberland, it covers the whole of the UK, offering an efficient and reliable service wherever you happen to be. Overdrive buys vehicles from car dealerships, franchises, companies and private individuals, and supplies them too â&#x20AC;&#x201C; although it doesnâ&#x20AC;&#x2122;t sell

â&#x20AC;&#x2DC;â&#x20AC;&#x2DC;

to members of the public. The firm was launched 10 years ago by North East businessman Jason Miller and his wife Niki and provides an invaluable service to motor dealers large and small. Youâ&#x20AC;&#x2122;ll certainly be in capable hands if you choose to use Overdrive as Miller is not short of experience. He started selling cars when he was 19, with his first transaction being a Nissan Cherry Turbo which he had bought from his uncle. Overdrive can help your business in many ways. For instance, if an order for a car is cancelled at a dealership, Overdrive can step in to buy the vehicle; or if a salesman is three or four cars short of hitting his target, the company can

If a salesman is short of hitting his target, the company can take up the slack to ensure that target is reached.

(after negotiating a discount) take up the slack to ensure that all-important target is reached. All makes and models are handled by the company and if you engage the services of Overdrive, you will avoid hefty auction fees and transport costs too. The company doesnâ&#x20AC;&#x2122;t source any of its vehicles from auctions and you can avoid having the time and expense of going to auction yourself as Overdrive will buy your partexchanges with quick payment and collection.

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Oiling the wheels

Paint protection

W: jewelultra.co.uk T: 01622 815 679

onfidence is key, and weâ&#x20AC;&#x2122;ll help you every step of the way. Thatâ&#x20AC;&#x2122;s the message from Lance Boseley, the UK sales and marketing director for Jewelultra, the name behind Diamondbrite paint and fabric protection. Diamondbrite is one of the motor industryâ&#x20AC;&#x2122;s tried and tested ways of increasing your bottom line. By simply introducing Diamondbrite products to every customer throughout your business â&#x20AC;&#x201C; in vehicle sales, aftersales and your accident repair centre â&#x20AC;&#x201C; amazing results can be achieved. After all, making money is as good as saving it! Jewelultra puts a great deal of effort into making sure sales staff are confident in the product they are selling, with online videos providing a wealth

â&#x20AC;&#x2DC;â&#x20AC;&#x2DC;

of useful hints and tips. As with so many things in life, timing is key and Diamondbrite can be mentioned during a part-exchange appraisal or perhaps during a telephone call a few days before a customer is due to pick up their new car. Training can be provided in overcoming objections from potential clients too, helping them see the benefits of a product that protects their vehicleâ&#x20AC;&#x2122;s exterior from bird lime, tree sap and fading â&#x20AC;&#x201C; and the inside from spills and stains. Then thereâ&#x20AC;&#x2122;s the technique of actually applying the product correctly, and a useful video can help there too. Boseley is keen to stress the strength of the relationships Jewelultra has with participating dealers: â&#x20AC;&#x2DC;We try to work as closely as possible with

We see ourselves as an extension of the sales team and almost become part of the business.

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Part of the team

the dealer. We see ourselves as an extension of the sales team and almost become part of the business.â&#x20AC;&#x2122; Another service Jewelultra provides is feedback for its network of dealers so they can compare their performance against that of their rivalsâ&#x20AC;Ś a useful motivational tool and another driver towards increased profits. So working with Jewelultra wonâ&#x20AC;&#x2122;t just improve the appearance of the cars youâ&#x20AC;&#x2122;re sellingâ&#x20AC;Ś your balance sheet will soon be looking a lot healthier too.

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guide to saving money Online advertising

Save, yes, but spend wisely W: advertising.autotrader.co.uk T: 08444 706 761

t is not just about saving money, but how you can make the most of what you are spending. That’s the view of Trader Media Group’s commercial head of B2B Alistair Jeff: ‘Times are very hard for everybody in the motor trade, but there still seems to be a big divide between those who seem to do well and those who don’t seem to do well. In a lot of ways, people look at times like these and think it is a time to save money, when often the best thing to be doing is not necessarily save money by way of spending less, but saving money as in spending more wisely. ‘I think that while we can all turn around and say ‘‘don’t advertise here, and don’t spend money by cleaning the windows or the cars’’ the trouble with that is I think a lot of dealers have already taken a lot of cost out of their businesses. ‘I certainly remember when I started selling cars 20-odd years ago costs in a dealership now are probably hugely less than they were once. Dealers have taken out an awful lot in staff overheads and advertising costs, and so on, it is really difficult for dealers to say, ‘‘where can I actually spend less?’’ I think it is sometimes a case of ensuring dealers understand return-on-investment, and spending the money dealers are already spending as wisely as possible.’ Interesting thinking, but Jeff has a point. The firm – which is behind big guns such as Auto Trader and Autotrade-mail – can help dealers in this approach. Advertising packages on Auto Trader can be

what they are getting for their money. But there are things dealers can do themselves, though. ‘Dealers should be analysing their leads as much as they can by going onto sites like Google Analytics or social reporting tools like HootSuite, and making sure that they are using all of the digital opportunities available to them,’ says Jeff. ‘It is very difficult to monitor local press advertising or regional advertising because dealers would have to use their salespeople. But, then again wherever possible, dealers need to make sure that their salespeople are reporting correctly where the leads are coming from. ‘Dealers need to be asking themselves – are they really getting anything out of advertising in local papers every week instead of every other week? Here they can save money more wisely. ‘If dealers can only answer this by guessing, it shows they are not spending enough time analysing where their leads are coming from. It is not down to quantity always, but quality – and you can only quantify that quality if you spend time analysing what you have done.’

Dealers should be analysing their leads as much as they can.

‘‘

tailored to suit dealers, so that their money is spent effectively – and their platform works too. ‘Recently I was in a meeting with the group marketing manager of a leading dealer group,’ explains Jeff. ‘He showed me their website stats in reference to their advertising, and they were spending a lot of time and effort on their analytics to understand exactly where their site traffic was coming from. ‘They believed wholeheartedly that their advertising revenue and their marketing revenue was best spent in a proportionately large amount through the web – so that’s either through their own website, SEO and SEM, or with web advertising.’ Average time spent on the website from a lead like Auto Trader? ‘Forty per cent higher than our competitors,’ says Jeff. ‘For example, in October the average lead was three minutes 50 – our competitors were two minutes.’ For dealers who already use Auto Trader and who want to save money, Jeff urges them to speak to their Auto Trader representative and understand

CarDealerMag.co.uk | 73

focus on.

guide to saving money Marketing

W: bamboomarcomms.co.uk T: 020 8979 1607

aving money is not just about making sure the customer vending machine is switched off at 6pm, but it’s the unseen things too. Like marketing. Getting systems in place to improve ‘back office’ duties such as customer contact can save money for dealers while improving customer service. This is how Bamboo Marketing can help. Run by managing director Steve Tweedle and sales and marketing director Annalisa Walker, the firm is an expert in marketing communications and is ideally placed to help out dealers. ‘We can assist in providing dealers with a virtual marketing department in their dealership,’ explains Tweedle. The firm can ensure back office jobs are minimised by taking care of such duties,

VHC

‘‘

allowing staff to focus on customer facing and improving customer service. ‘Bamboo can help out in proactive customer contact and that can be prospecting, car servicing, upselling, warranties, service plans and more,’ explains Tweedle. ‘We can carry out those activities in a way that probably dealers don’t have the ability to focus on. There is always what I call the day-job which is the running of the dealership, and that can get in the way of the nice things to do like sending out birthday cards to customers. What we do is provide an engine behind the scenes, and the dealer only pays for the specific activity – so there’s none of the cost associated with recruitment and paying staff. ‘All the infrastructure – the hardware, the

MOT

PROMOTION

We can assist in providing dealers with a virtual marketing department in their dealership.

‘‘

Back-up plan

software, the renewals, inbound and outbound calls reporting, maintenance, support, energy bills – associated with having people in support functions, we take on all of those costs and literally provide a ‘‘pay as you go’’ service.’ Bamboo will provide a dealer with a bespoke service and will analyse what they require and what they aspire to. ‘There’s no one-sizefits-all solution, but there are certain core activities which are around predictive marketing activities which is to maximise all profit-making opportunities within the customer ownership life-cycle.’

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74 | CarDealerMag.co.uk

PAINT PROTECTION

A partnership, forever T

hey say that nothing lasts forever. Not true. One thing that does stand the test of time is Platinum Protection, the core product from Dealer Option, and which is guaranteed to mean that your customers’ vehicles will keep their showroom-standard looks. All that is required is a simple application process that takes just 30 minutes and any car is protected for its entire life. It’s something that customers are sure to love, can boost your bottom line, and is hassle-free. All the car owner has to do is wash their vehicle once the product has been applied and the showroom appearance will be maintained… and that’s guaranteed! ‘We have a product and commodity that will

work and stand the test of time,’ says Dealer Option director Sebastian Belardo. ‘The technology is from the US. We brought it to the UK and we are the sole distributors for the UK and Europe. ‘So the technology is right up to date and we are cheaper than our competitors.’ Belardo is quick to point out that Dealer Option is dedicated to its customers, by which he means dealerships involved in promoting the product and vehicle owners themselves. Just in case there are any concerns from customers, Dealer Option guarantees to provide a response within 48 hours. ‘We want to become known as the most reputable paint and fabric protection company,’ he says. ‘And we’re happy to talk to customers direct.’

‘‘

We have a product and commodity that will work and stand the test of time.

‘‘

W: dealeroption.co.uk T: 01367 246011

Dealers are trained online with the product and register the protection while the customer is sitting in front of them at the point of sale, providing peace of mind for the customer. So to sum up, Belardo’s two-pronged message to cash-conscious dealers is: ‘Our packs are cheaper in the first place and application can be done in 30 minutes. Let’s not forget, time is money!’ [CD]

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feature.

SPOTLIGHT ON: Traka

Key-ping track

A safe and secure way to store keys in your dealership has arrived. James Batchelor reports on how Traka can help save you hassle

t’s funny to think that a car dealer’s business relies upon looking after little pieces of metal. Misplacing or having keys stolen can cause disaster to a car dealer’s business as losing them means stock cannot be sold or a customer cannot have their car back. That’s not to mention the fact that insurance companies are tightening up their rules, stipulating that if a car key is stolen as a result of a dealer being lax, they won’t pay out. Luckily, there is one firm, based in Britain, who can help out. Traka was started by John Kent two decades ago and has provided key management to everyone ranging from Tesco to the Metropolitan Police’s Royal Protection Squad – and now they are launching a major drive to assist car dealers too. ’Around 20 years ago British Airways came to me to solve a problem they had in managing the keys of their support vehicles at airports,’ explains Kent. ‘Employees would start work in the mornings by grabbing the keys to the cleanest and newest vehicles, stick them in their pocket or desk drawer and at some point in the day use the vehicle. ‘This, naturally, starts a habit with everyone

else doing the same thing so there ends up being not enough keys due to this private reservation habit. What followed was a pressure to acquire new vehicles – but BA didn’t need new vehicles, it was just that they weren’t being used properly.’ British Airways ended up buying 40 systems from Kent’s firm as they found that the Traka system enabled them to better utilise their fleet of vehicles, and their vehicles remained in service longer because they were in better condition. So, what is Traka? Put simply, it’s a vending machine for electronically-tagged keys. At the heart of the whole process is the iFob or ‘silver bullet’ which, once attached to car keys, becomes electronically tagged. It’s then placed into a very secure cabinet that can only be opened by a key, swipe card or a finger print – it’s usually the latter in car dealerships – and as a key is taken from the cabinet it is recorded by the electronics in the silver bullet and by the software in the cabinet. The advantages? Well, the most important one is there’s a history of who has taken the key – and there’s knowledge of who has the key at any given moment. ‘For instance you might be a small to midsized dealership in London and you could have

‘Silver bullet’ is the brains behind system

Fingerprint recognition releases keys

76 | CarDealerMag.co.uk

one of our 50-key systems which could cover all of your vehicles and perhaps your service vehicles,’ explains Kent. ‘If you were a bigger dealership, you might have a multiple number of our cabinets. You might even have them spread around the dealership, so there could be a cabinet in the service reception area, one in the sales department and another in the valet bay and so on. The idea is that this allows the dealership staff to move the keys around the dealership securely, and the process is all logged and managed by our Traka32 software system.’ Modern cars are built in a way to make it difficult to hot-wire them, and the key is needed to start them. While this is to be celebrated, thieves now realise that it’s the key they need to steal the car. ‘If you don’t look after keys, they will get stolen and thieves are becoming wiser on how to steal car keys. Insurance companies are now

Traka key cabinets can be operated by fingerprint recognition and will help keep a log of who has the keys to which vehicle

Key vending How it works in dealerships A good example of a dealer using Traka is Wollaston BMW. They’ve been using the Traka32 audited software, are impressed by it and find it a straightforward system to use. Their experiences have been improved by the BMW Key Reader which, by inserting a customer’s key, can pull out the VIN number, mileage, colour and any other relevant details, and populate that straight into the Traka32 database. The dealership also uses the iFob reader which can link the database to the iFob, and finds the process streamlines vehicle movements. Watch the video at bit.ly/TrakaBMW to find out more.

telling dealers if the keys are stolen, we cannot cover you,’ says Kent. The process of looking after keys needn’t be mentioned to customers as it can form another part of your excellent customer service. But Kent believes it should be marketed to customers: ‘With customers, there’s always that worry ‘‘who was driving my car at lunchtime?’’ and ‘‘I’m sure my car had less miles than it has now’’. Traka gives an audit of who had the key – and if that staff member knows that their boss knows they’re driving a customer’s car, they are far less likely to be irresponsible. If I was a customer and I knew there was an audit trail, I would feel a lot more comfortable.’ A number of large dealership groups already use Traka products. ‘Jardine uses our product in almost all of their sites, so does Dick Lovett, Sytner and a McLaren dealership. Kia, Fiat and

Ford dealers use it too, but predominantly it has been the premium brands. Cargiant also uses our product and Carshop currently uses our product in four of their five sites and will soon be installing it in the fifth,’ says Kent. You might think there isn’t a price on security, but with Traka there is. Prices for the product are dependent upon the number of keys a dealer wants to look after. The firm now has a rental scheme in place that works out at around five pence per key per day. ‘That is a very variable number but for about five years the all-in costs are five pence per key per day,’ explains Kent. ‘Historically, in other sectors businesses pay out a capital amount of money for our product, and they might spend anything between £5-50,000, with the average cost per key being 40p. But it’s the rental scheme we think dealers will be interested in.’ [CD] CarDealerMag.co.uk | 77

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TopTips n

Our helpful feature that gives you hints and tips to improve your business

Survive the downturn

With new car sales static and business tough, Dave Brown reports on how you can prepare for the worst

irst, the bad news. We don’t appear to have left the recession behind us yet. If you can survive, let alone thrive, in these tough times, you deserve a whole heap of credit. Now for some rather better news. Even in in the middle of an economic firestorm, there are still plenty of chances to make money. And there’s nothing like a slump to get people thinking about saving a bit of hard-earned cash too. We’ve been asking leading figures in the motor trade to come up with ways you can give your balance sheet a boost. A common theme to many of the contributions was a simple message: Make the most of existing customers. Jonathan Such, regional sales manager for First Response, said: ‘After the car is handed over, keep a record of the customer’s name, address, phone numbers and email. Keep in contact with your customers so you can prospect them for future MOTs, servicing and potential car sales. ‘Spend some time ‘‘reality checking’’ the experience that the customer receives when they enter your premises,’ he added. ‘Look at the monthly running costs of your business and understand what percentage of these costs could be either predictable or fixed. Getting to know your costs thoroughly means you can then determine what you need to do each month in

order to generate a profit.’ Such’s colleague, Ben Garside, marketing manager at First Response, added: ‘Dealers must see marketing as an investment and not as a cost. Dealerships must improve and increase their visibility to consumers with well-targeted marketing communications. ‘Consumers must feel welcomed and invited. I have attended dealerships where the forecourt is overgrown with weeds, has overflowing bins and vehicles that have flat tyres. ‘I have also observed offices with dirty pots on the side and newspapers mixed up with customer documents cluttering the dealer’s work desk. Take a look around. Could you spruce up your surroundings with just a little bit of work?’ Steve Johnson, principal at autoproactive, PR and market communications consultants to the driver training industry, continued the theme of customer retention. He advised: ‘Communication is everything. Keep in touch with existing sales, service and bodyshop customers on a monthly basis. Send out a brief email to them telling them about new initiatives, products, promotions and deals. Don’t push the hard-sell too much. Make it light and informative. Always remind them that you appreciated their custom in the past. Yes, suck up to them, but with a light touch!’ Tim Heavisides, CEO of Car Care Plan, the

GForces commercial director Tim Smith

SMMT chief executive Paul Everitt

78 | CarDealerMag.co.uk

Empty showrooms: Don’t let a lack of buyers get you down, use the time instead to plan ways to save cash UK’s leading provider of motor warranty and GAP products, agreed: ‘Generating higher footfall can be very expensive so it’s usually much more cost effective to make sure the sales processes accommodate those customers already visiting. ‘It’s not necessarily about completely re-engineering what you do or what you say, but asking every customer about how they’d like to finance their car or how long they plan to keep it opens the door to a whole host of opportunities. ‘Customers buy but they also expect dealers to sell. Asking a few basic questions when someone purchases a car is a sure-fire way to open up sales potential – finance, warranty, service plans, the list is endless. Selling the car is half the story but it’s amazing how many customers don’t buy any add-ons which could be bringing them back into the dealership for years to come. ‘A quick review of the sales process can yield huge benefits and make a huge difference without having

DataFile CONTENTS.

‘More than half of all visits to UK dealer websites take place outside of hours.’ to spend more on generating higher footfall.’ Making the most of existing contacts is one thing, but it helps if you’re open for business when potential purchasers are thinking about their next car. And that’s one area where technology can help. Tim Smith, commercial director at GForces, said: ‘More than half of all visits to UK dealer websites take place outside traditional showroom opening hours. ‘You can log on to most supermarket websites and inquire about products and potential orders very late at night. Car dealers still have a nine-to-five mindset and they’re missing out as a result.

Right click 81 Net Gains 83 Auctions 85 The Statistics 87 SMMT sales figures 89

‘Conversion rates for leads registered between 7pm and 11pm will be higher than for those made during the day, as people with disposable incomes will be at home researching their next vehicle at this time. Where dealers have put live chat systems in place, the benefits have been felt almost immediately, with an average of 15 qualified sales enquiries waiting for staff in the morning each day.’ Paul Everitt, SMMT chief executive, drew attention to the boost a business can get from saving money as well as trying to maximise income. He said: ‘Reducing waste, cutting energy bills and tightening internal processes can make a significant impact. Environmental awareness can be a positive message for customers and local stakeholders in addition to improving a dealer’s bottom line. ‘Maximising aftersales opportunities creates another useful touch-point for retailers. Winter tyres are a great example, as dealers can help

Suppliers guide 90 Trader directory 92 Shares 95 Jobs 96 Time Is Money 98

customers to be safer, while offering sales, storage and fitting services alongside add-ons like winter health checks and goodwill-boosting cold weather driving tips. Free publicity, quality reassurance and third-party endorsement are money-can’t-buy bonuses for any dealer.’ Michelle Flower, automotive credit services campaign manager at Experian, said canny spending was crucial: ‘Good business in tough times isn’t just about cutting costs – it’s also about making sure the money you spend isn’t wasted or worst of all loses you business or damages your reputation. ‘This can happen if you have a database of customers you regularly send MOT reminders to or contact about changing their car. Make sure the money and time you spend doing this is well spent and that your return on investment is maximised by ensuring the data is up to date.’ Andrew Ballard, also an automotive industry expert at Experian, continued the theme, adding: ‘Data is a commodity that can help win and retain business but can quickly decay and become inaccurate so it is vital to re-invest in this valuable asset by following some simple steps. ‘Record all relevant prospect activity – that lost Post-It note could have been the next new car sale! Consider all channels – adapt your inbound and outbound communication strategy to suit your customers and prospects. ‘Capture and record data accurately and in a timely way – an incorrect phone number or email address will waste time and could lose business. ‘Keep your data updated by adopting a regular data hygiene strategy on customer and vehicle records. Inform your customers and prospects – and always do what you say you are going to do, when you say you are going to do it. ‘To illustrate the importance of a data hygiene strategy consider the fact that on average in the UK, every day 18,000 people move home, 1,600 people die and 20,000 vehicles change hands. If one of those statistics is your customer – how will you know about it?’ Taking the time to sit back and think about ways to save money isn’t always easy when you’re busy running your business. But when new car sales are static, handy tips like those shared here can be vital to take on board – and act upon. [CD] With thanks to... Tim Heavisides, carcareplan.co.uk Jonathan Such, Ben Garside firstresponsefinance.co.uk Steve Johnson, autoproactive.co.uk Tim Smith, gforces.co.uk Paul Everitt, smmt.co.uk Michelle Flower & Andrew Ballard, Experian.co.uk

CarDealerMag.co.uk | 79

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Integration will give you a big advantage An aftersales suite enables dealers to store all their data in one place, and this will bring a whole range of benefits

ver many years, most dealer systems have evolved to improve operational efficiency which is an honourable intention. The problem is, these systems don’t directly improve consumer experience, rather it is assumed the benefits will be applied by staff saving time hence being able to devote greater resource to customer-facing tasks. Much of the software common in the field of aftersales is based on antiquated manual systems such as T-Cards, menu pricing, customer loyalty and service reminder systems. In short, software has been developed without taking into account the bigger aftersales picture. With the growth in use of dealership software systems, providers have focused on their own particular area of expertise. This has presented dealers with the problem of having to utilise several software platforms to undertake the dayto-day operations of booking, tracking of balances and up-selling aftersales services. Another problem exists in that with several different programs being used to manage a dealership, ‘islands’ of information are created where data is incompatible, or simply cannot be streamlined into one output.

Have you thought about a software solution for aftersales?

Dealerships are becoming ever-more dependent on electronic data documentation with vehicle health checks, service plans and electronic accounting all increasingly common. To avoid processes and tracking becoming disjointed, it is important for dealers to have a system which is integrated, easy to use and able to be tailored to the needs of a business. In creating a central aftersales suite which incorporates the various aspects of dealer operations, a slicker and more robust operation is possible. Integrated systems are already being developed which allow dealership employees to log in to a single application using a single set of log-in credentials within which they can access a complete aftersales suite. Service plans, online bookings, CRM software and a customer’s history can all be kept in this central location. There are other benefits on top of ease of use for staff: Having one provider for an aftersales suite means that there is one point of call for training and support. Perhaps the most important benefit to a dealership is that the data is located in one place and can be fully integrated into online tools

and directed promotional activities. Islands of information which have previously hindered the development of a streamlined aftersales system could be utilised as a holistic information bank. Customer retention also becomes enhanced with an integrated aftersales suite. Those who have purchased service plans, parts and accessories can automatically have any loyalty scheme bonuses added to their account. Service reminders could be sent automatically by email, allowing customers to book a service online. The multiple advantages that an aftersales suite could bring to a dealer cannot be ignored. From ensuring that information is centrally located and can be called upon for targeted marketing, to improving customer relations and retention, when such systems are fully developed they will give dealers a tangible strategic advantage.

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.

‘The multiple advantages that an aftersales suite could bring cannot be ignored.’

Christmas is coming... Have you wrapped up your Aftersales? 0845 658 9290

www.gforces.co.uk CarDealerMag.co.uk | 81

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It makes sense to add video content Increase the popularity of your web pages and share your message effectively

deally, I’m sure you would have your best sales executive sat in front of every customer you were trying to sell a car to. Similarly, your best business manager would be perfectly suited to present your F&I offering to every customer. However, this isn’t possible in most instances – especially if you have retail sites that are spread over a wide area. So is there a way of making sure that every customer who visits your website gets a clear and consistent message every time? I believe that this is possible, and one of the best ways to ensure this consistent approach is to use bespoke video content. In an earlier column I discussed my thoughts on adding video from a search marketing perspective (research shows that you are 53 times more likely to appear on the first page of Google if your site has relevant video content, and that customers spend 20-40 per cent more time on sites with video) but this month I would like to build the case from a customer education and customer engagement angle. When you think about it, video content tailored to your business makes so much sense. How much more effective would a presentation of your service plans or GAP insurance be if you could dictate the message rather than someone else?

‘Customers are viewing the content on many different platforms.’ Also, by being forced to concentrate on the main features and benefits of your business, you should end up with a more focused message. But controlling the message that reaches your existing and potential customers is not the only benefit. You can also track the number of customer views of the video, and how long it has been watched for. Also, you can also use video tactically – for special offers and important announcements, for instance. However it is used, tailored video content will assist in providing the customer with genuine reasons why they should buy from you. At Codeweavers we have successfully been producing bespoke video content now for nearly a year. The results from some of our clients are

extremely encouraging – some have hundreds or even thousands of views per month, with nearly 70 per cent of customers watching the video all the way through. (My video colleagues assure me that this is a very impressive figure!) We have also noticed that customers are viewing the content on many different platforms – iPhones, iPads, laptops – even Playstations and XBoxes! Quite simply, when you have tailored video across your site you can increase the popularity of your web pages. Most people prefer to watch rather than read, so share your message and create a dynamic website that attracts and keeps visitors. Codeweavers can help you make this a reality, so get in touch with me to further explore the possibilities that video can bring.

Who is Martin Hill?

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

CarDealerMag.co.uk | 83

auctions.

CAP Black Book goes mobile bit.ly/BlackBookApp

Henstock

auction stations

Keeping in contact with existing clients is crucial

he annual BCA Used Car Market report contains a wealth of information about the marketplace we all work in, from the number of cars sold and their combined value, through to the types of vehicle being purchased and the numbers of cars in every household. But it is the consumer survey, conducted with BMRB, which generates the most interesting data. The survey asks some 4,000 motorists what they think about used car issues and some of the most illuminating responses come in the section that looks at the relationship between dealers and their customers. Even in these more financially-straitened times, motorists still prefer to buy from dealers, accepting that while this will be more expensive, there are benefits in security and confidence in the ‘product’ that outweigh the cost and hassle factors of sourcing a car privately. But if a dealer has been successful in getting the customer through the door and selling him or her a car, what happens next? This year’s survey showed that 44 per cent of car owners had not heard at all from their selling dealer since they took delivery of their used car. While the number of used car buyers contacted ‘about servicing their car’ edged up from 32 per cent to 35 per cent year-on-year, the number who had been asked ‘if they were satisfied with their car’ dropped five per cent to 27 per cent in this year’s survey. More worryingly, just 15 per cent of previous customers had been contacted to see if they might ‘think about changing their car’. Dealers’ track record of keeping in touch regularly with their used car customers has not improved over several years, as shown by ongoing research for our Used Car Market Report. It’s an expensive and time-consuming business continually searching for new customers interested in buying a car. Keeping in touch with existing customers and, at the right time, discussing the possibility of them changing their car, is likely to be a far more rewarding approach.

Price movements not surprising, says NAMA The first bid is very often the best bid, vendors are advised

rice movements in the used car market between September and October are ’significant’ but ‘unsurprising’ says NAMA. In September, cars of all ages increased in price by just over two per cent, with three-year-old fleet cars faring slightly better at three per cent. However, interim figures issued by the National Association of Motor Auctions (NAMA) show that by the end of the second week in October, the three per cent gain in the fleet sector had been completely reversed. Average conversion rates reached a fourmonth high of 77 per cent last month, but by the second week of October a combination of additional auction supply and a reduction in demand eroded this figure to close to 70 per cent and falling. NAMA says that due to continued poor trading conditions, vendors should be realistic in their prices, adding that ‘the first bid is very often the best bid’.

‘It’s expensive and time consuming to keep searching for new customers.’ Snow thanks!

Who is Simon Henstock?

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

LESS that five per cent of motorists are planning to buy winter tyres this year, a new survey has found. Manheim Auctions has discovered that 95.5 per cent of respondents are not planning to buy winter tyres despite the chaos caused by snow and ice last year. Reasons for not buying include cost (41 per cent said they could not afford them); weather (28 per cent didn’t think driving conditions would be bad enough); and ignorance (16 per cent didn’t really know what winter tyres were). ‘Winter tyres are an investment in safety. ‘They will help to keep you on the move and on the road, reduce the risk of accidents and can be used over several winters,’ said Craig Mailey, Manheim marketing director.

Andrew Hulme, NAMA chairman, said: ‘Professional wholesale and auction buyers have more choice than at any time since the late spring and demand has become increasingly polarised. ‘Values remain healthy for grade one and two cars largely due to the ongoing shortage of retail-ready stock, but there is little appetite for grade four and five stock unless it is realistically valued to sell. ‘Buyers factor in the real cost of refurbishment and downtime financing and simply deduct that from their bidding, because they want cars to retail today, not to sit in refurb shops for up to 28 days. ‘Vendors must focus on their least attractive vehicles and invest in appearance re-conditioning and refurbishment to generate buyer interest.’

Now dealers can get a very Quick Response from BCA BCA has introduced QR codes to marketing and point-of-sale material. QR (‘quick response’) codes allow anyone with a smart phone/mobile device to scan the code, which then loads data onto their device. BCA is producing codes on printed monthly sales guides, daily catalogues, sales centre posters and banners – and once scanned, the codes direct mobile devices to the BCA website where the appropriate sales programme or catalogue information is displayed. QR code reader software is widely available for most mobile devices and is generally free to install. CarDealerMag.co.uk | 85

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.

DATA FILE.

..in association with

Thestatistics Used Cars n Top 10 Searches n SMMT Sales Data

Unhappy customers going online to moan O

ne in five consumers will share bad dealer experiences with their friends on Facebook, according to new research. Motors.co.uk has found that only half of consumers who have complained directly to a dealer on Facebook have received a response. The age groups most likely to complain about a dealer experience on Facebook are 18-24 year olds with a whopping 36 per cent, followed by 25-34 year olds (29 per cent) and 35-44 year olds (25 per cent). London is the most active in using social media to share praise and complaints. A third of consumers in the city have shared their good and bad dealer experiences with friends on Facebook, while 15 per cent have used Twitter to post complaints. One in 10 consumers has Tweeted or ‘Facebooked’ a dealer with a complaint and received a response, while three per cent of consumers have received no response. Phill Jones, commercial director at Motors.co.uk, said: ‘It’s good news that when consumers make contact with dealers via social media, about half of them are getting a response – but this

Market insight

The Facebook factor

could be much improved. ‘Increasingly, unhappy customers are bypassing traditional customer service channels and using Facebook, Twitter and forums to log their complaints. ‘It’s a very public place and because of that, many companies are quicker to act on those complaints than through traditional customer service channels. ‘It is important for dealers to engage with consumers, via social media channels, so they can listen to customer feedback and act swiftly, if necessary. ‘A social media presence provides dealers with a cheap and easy way to resolve issues. Since other Twitter users can see both sides of the conversation and that issues are being resolved, it can also boost the company’s reputation online.’

The most (and least) reliable 4x4s revealed THE UK’s most and least dependable 4×4s and SUVs have been identified. Warranty Direct has found that Honda’s HR-V (1998-2006) performed best, with only three in 100 recording a fault in the last 12 months, followed by Suzuki’s Grand Vitara (2005 onwards), the Honda CR-V (2007-) and the Subaru Forester.

Kelleher

In stark contrast, Land Rover’s Range Rover (2002 onwards) was shown to be the most breakdown-prone off-roader – two thirds of its reported faults were suspension or electrical hiccups. The Jeep Grand Cherokee (1999-2005) and Volkswagen’s Touareg (2003 onwards) were the second and third worst for reliability.

ith more than 31 million unique visitors per month, it seems the whole of the UK internet population is on Facebook. Our new research reveals that the percentage of consumers using social media in some aspect of the car-buying process is now 43 per cent, up from just 27 per cent back in February. The research, which was conducted last month amongst 1,000 used car buyers, also shows that nearly a quarter of consumers will use Facebook to ask their friends for advice on buying their next car and will post the details of a car they are selling on their wall. The increasing use of social media in the car-buying process since earlier this year has in part been due to the steady rise in the number of users of Facebook and Twitter but also due to the increase in the number of dealers effectively engaging with social media. Clearly it is becoming increasingly important for dealers who are not currently using social media to build an effective strategy to engage consumers across blogs, Twitter, Facebook and forums. If dealers ignore social media, they could be missing out on a great way to engage potential and existing customers. We recommend that dealers start by ensuring they create a Facebook fan page for their business, either by doing it themselves or engaging an agency to do it on their behalf. Once you are up and running (remembering to tell all your friends, family, employees and customers to ‘like’ your page), with a modicum of effort to keep the content up to date, you can create a really effective advertising channel for your dealership.

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 | 87

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 Audi 6 Peugeot 7 Toyota 8 MINI 9 Mercedes-Benz 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 Volkswagen Polo 8 Vauxhall Zafira 9 Peugeot 207 10 Ford Ka

Fiesta’s in pole position as Ford’s great year continues Blue Oval’s boss in tribute to strong dealer network

he Ford Fiesta once again dominated the October new car registration figures as the Blue Oval’s 2011 success continued apace. Overall, sales in October rose 2.6 per cent on 2010, according to figures released by the Society for Motor Manufacturers and Traders. The rise followed a small fall of 0.8 per cent for the first month of the 61-plate change in September. The Fiesta notched up 7,308 sales last month taking its tally for the year to a whopping 84,506. The Vauxhall Corsa was the second best-selling car with 6,300 sales, but Ford claimed another place on the podium with the Focus finding 5,203 homes. ‘October’s new car sales rise is a positive result despite the uncertain economic climate,’ said Paul Everitt, SMMT chief executive. ‘Vehicle manufacturers and their dealer networks are working hard to offer consumers value for money through improved fuel efficiency, low running costs and innovative finance. We expect market conditions to remain challenging and hope the Chancellor’s Autumn Statement later in November will help to boost economic growth and consumer confidence.’

Sue Robinson, who represents dealers at the RMI National Franchised Dealers Association, explained it was strong fleet sales which buoyed the October market. ‘Private registrations were in fact down 4.3 per cent on October 2010,’ she said. ‘The economy remains very fragile with external factors such as the European debt crisis affecting its stability.’ She also called on the Chancellor to boost consumer confidence in his speech. The October rise was only the second month this year where a positive result has been posted. The SMMT explained that in the past three months sales have increased 0.9 per cent and said this relative period of stability followed a weak start to the year when registrations fell a worrying 4.5 per cent. Rounding off the top 10 best selling models was the VW Golf in fourth (4,400), Vauxhall Astra in

fifth (4,159), BMW 3 Series (3,664) in sixth and VW Polo (3,289) in seventh. The third Vauxhall in the top 10, the Insignia, charted at number eight with 2,923 sales, followed by the British-built Qashqai (2,789) in ninth and Honda Jazz 10th with 2,472 driving off forecourts. However, the clear winner so far this year has been Ford, with its Fiesta and Focus accounting for an incredible 157,381 combined sales in 2011. That’s very good news for the recently appointed Ford of Britain boss Mark Ovenden. ‘Ford comfortably beat the positive trend in the UK car market in October, which is a great credit to our strong dealer network,’ he said. A total of 134,944 cars found homes in October with the supermini segment up 17.4 per cent on last year and the mini segment up 4.7 per cent – both pointing to the fact that more consumers are downsizing to cut their bills.

sales@motors.co.uk

0845 265 6000 www.motors.co.uk/mediacentre 88 | CarDealerMag.co.uk

..in association with

SMMT sales data Oct/year to date

LOTUS -93.44%

SSANGYONG 290.00%

Figures supplied by SMMT

October 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

71 786 57 7,577 70 8,985 0 794 41 4,654 0 0 0 0 2,849 18,476 4,889 0 4,877 56 713 122 4,272 3,044 551 4 36 1,153 5,916 15 3,302 500 6,385 42 6,253 545 20 6,358 60 2,204 2,944 362 39 176 786 4,655 16,008 12,106 2,051 59 81 134,944

% market share

0.05 0.58 0.04 5.61 0.05 6.66 0.00 0.59 0.03 3.45 0.00 0.00 0.00 0.00 2.11 13.69 3.62 0.00 3.61 0.04 0.53 0.09 3.17 2.26 0.41 0.00 0.03 0.85 4.38 0.01 2.45 0.37 4.73 0.03 4.63 0.40 0.01 4.71 0.04 1.63 2.18 0.27 0.03 0.13 0.58 3.45 11.86 8.97 1.52 0.04 0.06

2010

Year to date (YTD) % market share

2011 % Change

75 843 96 6,616 85 10,034 1 719 82 4,965 0 3 0 19 3,548 16,344 3,146 0 3,057 37 806 104 2,755 1,864 303 61 27 2,303 4,967 16 3,183 776 5,935 44 6,295 599 47 7,495 377 2,083 2,833 375 10 206 926 5,284 15,970 12,814 3,202 77 88 131,495

0.06 0.64 0.07 5.03 0.06 7.63 0.00 0.55 0.06 3.78 0.00 0.00 0.00 0.01 2.70 12.43 2.39 0.00 2.32 0.03 0.61 0.08 2.10 1.42 0.23 0.05 0.02 1.75 3.78 0.01 2.42 0.59 4.51 0.03 4.79 0.46 0.04 5.70 0.29 1.58 2.15 0.29 0.01 0.16 0.70 4.02 12.14 9.74 2.44 0.06 0.07

-5.33 -6.76 -40.63 14.53 -17.65 -10.45 -100.00 10.43 -50.00 -6.26 0.00 -100.00 0.00 -100.00 -19.70 13.04 55.40 0.00 59.54 51.35 -11.54 17.31 55.06 63.30 81.85 -93.44 33.33 -49.93 19.11 -6.25 3.74 -35.57 7.58 -4.55 -0.67 -9.02 -57.45 -15.17 -84.08 5.81 3.92 -3.47 290.00 -14.56 -15.12 -11.90 0.24 -5.53 -35.95 -23.38 -7.95 2.62

1,156 10,266 909 99,901 921 99,712 0 10,867 839 59,621 0 3 0 0 37,041 233,104 44,453 0 53,968 280 12,050 1,791 47,525 31,728 6,713 281 347 28,223 70,987 242 41,449 8,883 83,569 491 84,153 5,141 395 59,699 4,106 31,066 39,241 4,391 71 2,350 17,737 62,773 204,121 155,565 28,166 988 755 1,688,038

%market share

0.07 0.61 0.05 5.92 0.05 5.91 0.00 0.64 0.05 3.53 0.00 0.00 0.00 0.00 2.19 13.81 2.63 0.00 3.20 0.02 0.71 0.11 2.82 1.88 0.40 0.02 0.02 1.67 4.21 0.01 2.46 0.53 4.95 0.03 4.99 0.30 0.02 3.54 0.24 1.84 2.32 0.26 0.00 0.14 1.05 3.72 12.09 9.22 1.67 0.06 0.04

2010

%market share % Change

1,229 6,949 941 88,355 891 92,083 24 11,942 1,266 64,183 2 168 2 756 47,405 246,770 55,421 4 54,872 158 13,939 1,718 50,278 32,654 5,629 448 410 40,113 64,187 266 36,003 10,586 77,113 684 95,529 5,568 686 83,286 4,554 28,235 35,360 6,730 230 3,284 18,627 77,231 214,593 151,025 33,112 944 711 1,767,154

0.07 0.39 0.05 5.00 0.05 5.21 0.00 0.68 0.07 3.63 0.00 0.01 0.00 0.04 2.68 13.96 3.14 0.00 3.11 0.01 0.79 0.10 2.85 1.85 0.32 0.03 0.02 2.27 3.63 0.02 2.04 0.60 4.36 0.04 5.41 0.32 0.04 4.71 0.26 1.60 2.00 0.38 0.01 0.19 1.05 4.37 12.14 8.55 1.87 0.05 0.04

-5.94 47.73 -3.40 13.07 3.37 8.28 -100.00 -9.00 -33.73 -7.11 -100.00 -98.21 -100.00 -100.00 -21.86 -5.54 -19.79 -100.00 -1.65 77.22 -13.55 4.25 -5.48 -2.84 19.26 -37.28 -15.37 -29.64 10.59 -9.02 15.13 -16.09 8.37 -28.22 -11.91 -7.67 -42.42 -28.32 -9.84 10.03 10.98 -34.75 -69.13 -28.44 -4.78 -18.72 -4.88 3.01 -14.94 4.66 6.19 -4.48

CarDealerMag.co.uk | 89

data file.

Alex Goy

all torque

Honda don’t offer a lot to set the pulse racing

t’s not a great time to be a Honda dealer, is it? I’ve been having a think about what I’d most like to sell if I got the readies, time and resources together to do it. And the answer wasn’t what I’d expected – Perodua, anything Chinese or even Dodge – it was Honda. Honda used to be a byword for reliability. You’d buy one if you had many miles to travel and didn’t like spending money at the mechanics. You’d also buy one if you were old, but that was probably because of the reliability thing, as well as the safe line-up of cars. Even ‘da kidz’ had something to love about the range – both the loony S2000 roadster and Nike-shaped Civic Type-R were a wannabe Vin Diesel’s wet dream. Both were affordable enough to be at the top of most petrolheads’ must-buy lists, too. Which is rare for a firm not from Germany, Italy or the UK... But now there’s very little to look forward to. Last year saw the launch of the CR-Z – a car that was supposed to make hybrid vehicles appeal to those too ‘cool’ for the Prius. It’s small, good-looking, and looks like it goes rather quickly. Much praise was heaped upon it at launch, then people drove it more and found it was impractical and not fast enough. Its hybrid drive, like the shiny Insight’s, isn’t CO2friendly enough to qualify for free entry to the middle of London, rendering both of them largely pointless as eco-cars. The same goes for the new Jazz Hybrid. Admittedly, Honda recently managed to squeeze the Insight to below the 100g/km CO2 barrier – but it seems to be a case of too little, too late. And what else would I have to sell? Nothing to get the pulse racing, that’s for sure. The Accord is a very well put together bit of kit, but won’t hold the attention like a German auto... The CR-V still appeals primarily to the elderly, the Jazz is smart(ish) but nothing groundbreaking. An all-new Civic was launched in Frankfurt and it looks as though someone’s gone crazy with a glue-gun and a parts catalogue on the old model. It’s a worrying time to be a Honda dealer – though the promise of a new NSX is certainly a good thing, you’ll have to wait a few years until you have window-bait. Until then... good luck.

‘Accord is very well put together but won’t hold the attention like a German auto.’

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 90 | CarDealerMag.co.uk

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James Litton trader tales

Highs and lows that have turned me into an addict

uring the 911 for 2011 campaign, I have observed the behaviour of James and his deals in the way an anthropologist might view a previously-undiscovered Amazonian tribe. The results of my study are that regardless of how developed your culture or business may be, there are patterns of behaviours and outcomes that we can do little about. Lesson One: You have nothing to lose with cheap cars. James was disappointed when the A3 turned out to be a lemon but even if he had paid money for it, the loss would have been minimal. Scrap value and reduced vehicle parc mean that any car worth less than a grand is, in sports parlance, a free shot. Lesson Two: Patience is a virtue. When James told me about the Fiesta and Ka I knew they were gold bricks but sometimes you have to wait for the best deal. Lesson Three: Do not fear the unusual – one man’s meat is another man’s poison. I have to confess the i10 scared me at first. Despite the fact that the car was cheap for the age and mileage, it was covered in grass and had footballs stuck on it – but when you scrutinise the deal closely, the Hyundai garage got a great deal. How many cars have they sold from it? How much would it have cost them to do something similar? The value to them is obvious but to others may look insane. Lesson Four: Cars and customers let you down. The Mercedes was an approved used car but the hood failed. The Ka’s faults were described to the new owner yet they still tried it on. Lesson Five: The first profit is the best profit. I make this mistake more than any other yet James did well in this regard. The Scenic, Fabia and Volvo were all tight deals but they were sold for an earn. The most interesting subject of research has been James himself. James has experienced the jubilant highs and depressing lows that I feel every week. My problem is I am addicted. One Fiesta deal will make up for 10 C4 Picasso deals. I just wonder whether James has caught the bug...

‘There are patterns of behaviours we can do little about’

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. 92 | 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: PEUGEOT 308

Lotus

Maserati

Beadles Land Rover

Car dealer says HHHHH

Murray Motor Company

Meridien Modena

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

What lets the 308 down is that it doesn’t stand out in any one area – looks, style, driving, comfort or handling.

Brandon Ware 0131 200 8888 0750 326 0186

Warren Butt 02380 283404 07860 530703

Price: £15,245, tested in Issue 40

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

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

Want this spot?

Currie Motors Toyota

Sturgess Volvo

Sol Cars

Barry Freedman

Your advert here

Dave Cooper / Steve Gurr 07831 704134 07921 408983

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CarDealerMag.co.uk | 93

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We’re still waiting for that light at the end of the tunnel Outlook for listed stocks is mixed: some of them are set to prosper while others will struggle

BEST-EVER OCTOBER RESULT FROM BMw

here has been a series of announcements over the past month – yet little convergence over the direction in which most of the motor retail stocks are heading. The most significant announcement was arguably from Vertu who released their half-year results to the end of August. The results themselves were decent enough with revenue up and profit in line with board expectations. What was slightly more concerning was the summary of September trading which was ‘behind the board’s expectations for the month’. In an effort to head off any detrimental effect on Vertu’s shares, the board were at pains to analyse their balance sheet and confirm that the company’s tangible net assets per share stood at 41.4p. The current share price stands at a significant discount to this, fluctuating between 23p and 25p during October. As the business is profitable and cash-generative it would normally carry a significant goodwill premium in addition to its asset base; however, Vertu is currently trading at a large discount.

‘The most significant announcement was arguably from Vertu.’ There is clearly value in the stock, whether to stock market investors or to a venture capitalist – however, investors appear to be trying to predict the timing of any upturn before investing in the company (particularly if they are already sitting on significant losses). Amongst the other listed retail businesses, Pendragon also provided an interim management update for the third quarter. Despite the current challenging trading conditions, performance was reported as remaining ‘in line with expectations for the full year’. The company again focused on a successful used car performance and outperformance of a declining new car market – however, the share price has continued to drift downwards. The Inchcape share price has moved upwards

BMW Group has achieved its best ever October sales result – 139,276 BMW, Mini and Rolls-Royce cars were delivered. The number of cars delivered in October was up 8.3 per cent on the same month last year. A total of 1,371,863 vehicles have been delivered to customers since the start of the year – an increase of 15.2 per cent compared with the first 10 months of the previous year (1,190,796 in 2010). The BMW brand sold 115,136 vehicles worldwide in October and grew at a rate of 6.8 per cent year-on-year. More than 1.1m BMW vehicles have been delivered to customers since January 2011, with the 5 Series maintaining its position as the clear segment leader with strong sales of more than 25,000 units in October. October was also a record month for Mini. Volumes rose 16.2 per cent to 23,839 units,

during October as investors have reassessed the impact of the international news which had been hitting the share value over the previous months. We are due an interim trading announcement and it will be interesting to see what management make both of current performance and the immediate outlook. HR Owen has taken a recent drop in price to a 52-week low, having lost significant value since the summer. There has been upheaval at the top with Andy Duncan leaving as chief executive not long after having joined and the company rushing out a succession announcement and trading update.

and in the year to the end of October, 232,056 units – up 23.3 per cent – were sold. The Countryman continued to report strong sales with 8,645 vehicles sold last month, up 145.2 per cent. Ian Robertson, member of the board of management of BMW AG, responsible for sales and marketing, said: ‘Our vehicles continue to be in strong demand worldwide and once again we achieved record sales for the month of October. ‘The BMW Group is well on its way to reaching its target of more than 1.6m units and achieving an all-time high for sales in 2011. ‘The new BMW 1 Series has had a successful start and we have had an excellent customer response to the new BMW 3 Series sedan, which will be launched worldwide on February 11, 2012. We are very confident that this new model will continue the success story of the BMW 3 Series.’

The company is continuing with its growth strategy and could well produce positive trading numbers based on the resilience of the premium end of the market to the current recession. It has been a much quieter month for Cambria and Caffyns, and Lookers has continued its steady share price growth since the cessation of bid negotiations in the company. The outlook for the listed stocks is mixed with some being favoured to prosper in the current recession and others being picked to struggle. Everyone appears to be waiting for the light at the end of the tunnel signalling the end of the recession before any significant moves are made.

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 | 95

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Advice

cars

data fiLe.

Yes, the future might look gloomy, but we can make it brighter A

s time passes, the world that we live in continues to evolve; the picture today is not as it was 10 years ago. House prices were on the increase meaning some parts of the population were benefiting from increased equity in their homes. Credit was becoming more readily available – particularly with the emergence of sub-prime lending – and people were able to live extremely good lifestyles, even if that was largely due to credit card spending, increased loans to values on mortgages, second charges and other personal loan facilities. It’s hard to escape the reality of how things are in the UK and world economies at the moment. Dark clouds continue to make the headlines on all fronts. The truth though is that these stories are only supporting the experiences that large parts of the country have had over the course of the past few years. Yesterday’s spending has certainly caught up with us and we are now starting to see widespread effects. The Institute for Fiscal Studies predicts that living costs are going to continue to rise with pay decreasing; ensuring customers have less disposable income month-on-month and unfortunately a knock-on effect meaning higher levels of child poverty. UK unemployment is reported to have hit a 17-year high of more than two-and-a-half million and we continue to see high-profile organisations announcing job losses which only increase this figure. Due to the current conditions there has been a fundamental shift in how a customer approaches any possible future purchase.

Jonathan

Such TIME IS MONEY

Gone are the days when the average customer would go out and buy a car without thinking about what that means to them in the future. Previous experience of finance agreements where they were unable to change their car, fuel-drinking machines and higher tax brackets have led to a situation where customers are being more cautious. From a business perspective this does not have to mean the end of the world and there are decisions we can take that will shine some light on the dimness that seems to be the future. Having the right stock which combats customers’

‘There has been a fundamental shift in how a customer approaches future purchases.’ concerns in terms of running costs is now more important than ever before, although I appreciate that this kind of stock is now more closely linked with supply and demand. Ensuring that the finance companies you are associated with do not expose the customer to extreme loan to values is essential if you are to put in place a system where you prospect your customer database for repeat sales. Do not feel like you are alone, because ultimately you aren’t and you shouldn’t have to be. Choose the right partners to work with who have your interests at heart for today and tomorrow and also ones who are willing to offer advice where needed.

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

Coming next month

If there’s something you think we should be covering get in touch. Our details are on page three 98 | CarDealerMag.co.uk

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