Car Dealer Magazine: Issue 48

De & a im le Car pr ov r ed fo Cl r 20 u 12 b P

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Kahn design

Social media

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w

Entrepreneur’s next big plan P44 Top tips from the experts P56

Issue 48 | March 2012 | CarDealerMag.co.uk | £3.50

Chill seekers Five roadsters for Buyers on austere budgets p36

in association with G-3 GLasscoat

Our search for the best car maker and suppliers is back! full details – P8

Join Car Dealer Club by visiting CarDealerClub.com Members get free legal advice worth £195 for a £34.99 subscription

Blackball Media Endeavour Quay Mumby Road, Gosport Hants, PO12 1AH T: (023) 9252 2434 W: CarDealerMag.co.uk

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 Car Dealer Club sales Executive Natasha Smith natasha@blackballmedia.co.uk

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

Subscriptions

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that time again when Welcome. It’s we ask for your help. Last

year Car Dealer Power rattled quite a few cages in the automotive industry.

Your responses to our survey meant some manufacturers didn’t end up where they wanted to in our list of the best car makers to represent.

In fact a couple even took it upon themselves to ring me up and dole out an ear-bashing. ‘Why are we so low?’ They grumbled (mostly screamed). And fortunately, for once, I could honestly say it was nothing to do with me. Well, not directly. That’s because Car Dealer Power winners are voted for by you, the dealers – all we do is report the results.

But I quite like the fact they had a moan. It meant the press offices who called had been given a flea in their ear from above, and that means those that matter are listening to our survey – and what you’ve got to say.

We’ve given Car Dealer Power a bit of a revamp. Part one is the same – this year sponsored by G-3 Glasscoat – with a couple of added categories. It’s here where we aim to name the best car maker (and worst) to represent in the UK. Part two is all about the suppliers; the people and firms you do business with on a daily basis. There are some brilliant suppliers out there helping dealers and this is your opportunity to ensure those that really shine get the recognition they deserve. We’ve split a number of categories up to give even the smaller firms a chance of winning too.

We’ll be inviting the winners to an awards evening in July to receive their gongs, but they won’t get there without you first telling us why they’re good. Simply name the company you use in the respective categories and then rate their services in the areas we’ve highlighted.

Oh, and there are some bribes to get you to do it too.

We’ve got more than £1,000 worth of kit to give away to

random respondents. You’ll have already found one such bribe in the bag that this mag came in – it’s an Armor All wipe and you could win a boat load of them as part of our prize draw. There’s an Alfa Romeo bike, signed Red Bull shirt

by Vettel and Webber, and tickets to a brace of motoring events to win too.

Just make sure we have your mobile number so we can let you know you’ve won. And remember, Car Dealer Power is 100 per cent confidential so don’t be afraid to tell it how it really is. See p8 for more details, or go to CarDealerPower.com now to fill in the survey.

ROADSTERS As you’ve seen on the cover, and in the wintry scene above, we’ve been having ‘fun’ in five roadsters this month. When we booked them in it was a bit chilly, but sunny. In true Car Dealer fashion, however, by the time we finally made it to the top of a Welsh mountain to shoot the cover it was blowing a snow storm that would have made the Alps look like Barbados. In fact, we were rather lucky to get off the hill at all once we’d shot the pics.

One thing that did stick in my mind though was the difference a set of winter tyres can make. Only the German pairing had rubber designed for the cold stuff fitted and they were noticeably easier to drive. While the Nissan and Lotus slid around and nearly ended up in countless ditches, the Bavarian duo simply breezed past. It transformed me from winter tyre cynic to fan boy in seconds. I hope you enjoy the test… I’m still trying to warm up now.

James Baggott, Editor

CarDealerClub.com Free iPhone App Free legal advice for members, p34-35

Thousands have it. Do you?

CarDealerMag.co.uk | 03

Driveaway Putting Dealers firmly back in the driving seat

Features Comparison

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INSURANCE SCHEMES w w w. l l s c h e m e s . c o. u k Aviva Insurance Limited.

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Join Car Dealer Club by visiting CarDealerClub.com Members get free legal advice worth £195 for a £34.99 subscription

46

INSIDE.

911 for 2011

Our BEN car is for sale

ISSUE 48 I MARCH 2012

dashboard

33

08

coming soon

A look at the 458 Spider

power survey

Social media has really come of age in business.

Kahn

Meet the man behind the designs

08

Peugeot boss won’t cut dealers

16

That Was The Month

17

Motors’ meteoric rise

18

Mercedes director quizzed

21

Finance

24

Toyota lashed by Sunday Times

26

Around the World

26

Big Mike

29

Car Dealer Club

34

forecourt

Enter our prize draw

‘‘ 44

Car Dealer Power

Why and how you can get social

56

Vauxhall Zafira

30

Chevrolet Aveo

31

Ferrari 458 Spider

33

features Roadster Road Test

36

Kahn Design

44

911 for 2011 Update

46

WMS Profile

48

Suppliers Guide Special

51

DATA FILE

36

Roadsters

Rear wheel fun machines

a month in A picture...

Top Tips: Social Media

56

Right Click

59

Net Gains

61

Auctions

62

Shares

63

The Statistics with Motors.co.uk

65

Suppliers Guide with Alex Goy

68

Trader Directory with James Litton 70 Jobs

72

Time Is Money

74

We love our jobs here at Car Dealer. We get to drive some cool cars, chat to inspiring people, and report on one of the best industries in the world. But it’s always nice when you meet someone who loves their job just as much. That happened at Autoglym where we met Barney Dobbs. He spent nine – yes nine – hours cleaning our 911 and the results were amazing. And he was still smiling at the end of it. See p46.

CarDealerMag.co.uk | 05

Times are tough. You’ve got to make the most of every business opportunity.

As the UK’s no 1 warranty provider, Car Care Plan can also give you all the GAP Insurance, paintwork protection & service plan products you need for smarter returns.

Find out how easy it is to switch to us.

Call 0844 573 7591 or visit carcareplan.co.uk

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

feedback.

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

Toyota hits back at claims Toyota refutes claims in Sunday Times article

bit.ly/Toyotarefutes Their humiliation in the States following the investigation into dozens of deaths due to unintended acceleration. Were they not fined 16 million dollars for withholding information?

Suicide mission or what?

Daveboy, via CarDealerMag.co.uk HW Moon Wigan changed my engine without me complaining or even really noticing there was anything wrong. The ST story isn’t reflective of my experiences as a Toyota owner.

Rav4Driver, via CarDealerMag.co.uk Daveboy, dozens of deaths? Really? Dozens? As for this article in The Sunday Times, I would say it is down to disgruntled dealers who maybe had their status as a Toyota dealership terminated?

I have nothing but praise for my local dealer, they have never quibbled with any repairs under warranty, mostly stuff that my limited mechanical knowledge would never had seen me spot. In the article it says that Toyota is the world’s largest car manufacturer, it was the same when it was GM – kick them until they ruin the reputation of the company then mourn its decline into bankruptcy and get the government to bail it out! The human race no longer celebrates success, instead it loves to see failure!

AvensisTR, via CarDealerMag.co.uk

twitter comments

Skoda comes to the rescue of editor’s car dilemma Skoda came to our rescue with a test car for the editor after he ironically moaned on Twitter he was car-less. It turned up five hours after he tweeted. Here’s the web’s reaction. Read the editor’s blog about it here: bit.ly/skodablag Love this, well done Skoda!

Via @nataliekitcher

Nice post James, not bad at all from Skoda! ;)

Via @catchamonkey That is brilliant PR. Really brilliant.

Great job by Skoda!

Via @asadd Via @stoneclip

Avensis: ‘They have never quibbled with any repairs under warranty.’ You are wilfully or ignorantly refusing to take the point. No one suggested Toyota quibbled with repairs under warranty. The Sunday Times article gave examples of corroded alloys which were entitled to be

Fantastic real life story of the new world of #socialmedia & embracing it through #Twitter.

Via @PhilipN_CAP As you say power of #twitter is fantastic - it can work for you or against you. Hope you enjoyed the lunch :)

Via @specialistcars1

replaced under warranty. But if the customer didn’t request the change, and the dealer went ahead anyway because he knew they were sub-standard, then Toyota would refuse to pay the cost and in addition fine the dealer.

Guy, via CarDealerMag.co.uk

MY CONFESSION

The trouble with answer phones is...

It was my better half’s birthday and I needed to be out of the dealership sharpish. I work in a car supermarket which opens until silly-o’clock every night and that makes taking the missus out for dinner a bit of a task.

Problem was my figures for the month were looking pretty disappointing so I’d been hitting the telephone leads list hard. We deal in, let’s just call them, the less than well-off end of the car buying market where getting finance usually makes or breaks the deal.

One lead was particularly hot (he’d probably walked in). He’d been in earlier in the week and I’d found him a suitable motor. This guy obviously wasn’t scared of a Big Mac or 10 and needed something with a bit of grunt – and space – to haul his JCB-sized backside to the nearest drive thru.

Unfortunately I couldn’t find a forklift, but instead had the next best thing – a Jeep Cherokee.

After shoving him into the driving seat for a test drive we deduced the suspension had enough travel

not to make it look like it was carrying a lard ass around and the diesel had enough torque to get the 4x4 moving when he was on board. He was happy and wanted it. As I suspected, a tramp could probably raise more money than this NHS-worrier, but I said I’d try and get him finance and call him back.

After a day on the phone, which involved shuffling more documents than a law firm’s hostile takeover department, I managed to negotiate a deal that made a bank bail-out look simple. OK, the APR level would probably have given a researcher on Watchdog an orgasm, but Chunk wouldn’t care – he could get to McDonalds after all.

So back to my bird’s birthday and I’m waiting for Fat Man to show to sign the paperwork. The 5pm appointment rolls by and Mr Waddle isn’t here.

6.30pm and I’m beginning to worry he’s choked on a chicken nugget. I’m supposed to be going home at 8pm, so at half seven I give him a call, only getting his answer phone.

‘Hello Mr X, it’s X from the dealership about your

car. We’ve got your finance documents ready to sign and the car ready for you. I’m just wondering what time you’ll be here – can you let me know?’ and with that I put the phone down. Or so I thought…

Turning to my mate I said – and I know this accurately because my boss played it back to me the next day: ‘I can’t believe Chunk has stood me up. Cheeky fatty. He’s probably too busy eating. I’d loved you to have seen him – he’s so big he leaves footprints in concrete. Hopefully he hasn’t had a heart attack – I could really do with the commission from this one...’

It was only then I looked back at my phone and spotted the red light was still on. Balls. The next day was interesting. Pavarotti’s big brother did finally manage to make it into the showroom – I was amazed at how fast he moved when he was angry – and I had to make an apology (without laughing). My boss gave the guy the car at cost, and I received a lovely handwritten note with figures and stuff on it… my P45.

Mr X, Bristol CarDealerMag.co.uk | 07

SURVEY.

‘‘

08 | CarDealerMag.co.uk

Seat will be looking to hang on to their Car Dealer Power title.

Car Dealer Power in association with..

Your chance to tell it like it really is...

Our Car Dealer Power survey is back and we need your help to find the best suppliers and car manufacturer to represent – and we’ve got bribes to encourage you!

O

ur survey, which puts you in the driving seat, is back – and this year it’s bigger and better than ever!

Car Dealer Power are the only awards voted for by the people that matter most – you, the dealers – and this year we’re giving you the chance to celebrate even more of the very best companies that help you do business.

Now in its third year, Car Dealer Power – this year supported by G-3 Glasscoat – aims to find the best car manufacturer in the UK to represent by quizzing its dealers about how it performs on a variety of levels. Last year, Seat just pipped the previous year’s winners, Nissan, to the top spot and will be looking to retain the title once again.

For 2012, we’re giving even more prominence to the suppliers that support dealers on a daily basis too. We’ve split a number of the categories up to give the smaller firms more chance of recognition in these important awards.

We want you to rate the firms you use in all manner of areas of your business so we can celebrate the very best – and invite them to our special Car Dealer Power Awards night to be held in July. We’ve also managed to secure a number of prizes which will be handed out to random respondents to the survey (see right).

Car Dealer Power is 100 per cent confidential too. We don’t even ask for your name, only your mobile phone number and this is only used to inform winners of our prize draw that they’ve won. If you don’t want to include your number, that’s fine – it just excludes you from the prize draw.

We want to know the good and bad things about what it’s like to represent your car manufacturer, so please feel free to give the most honest opinions possible. Car makers take our survey very seriously and a number have implemented changes to their processes directly off the back of comments made in previous years’ surveys.

Filling in Car Dealer Power shouldn’t take longer than a few minutes. You can do it on the following pages and send them back to us (photocopies are fine). Easier still is visiting our online version at CarDealerPower.com.

Awards Night

Just like last year, we will be holding an awards night for the winners of Car Dealer Power. Once voting is closed we’ll notify the lucky companies who need to book a table at our event.

Winners will receive access to Car Dealer Power awards artwork, will bag a stunning trophy to take away with them, and will receive fantastic publicity in Car Dealer Magazine and our website. Just take a look at how many advertisers are using their winners’ logos in our magazines… and others!

One small tip though – we advise all suppliers and car manufacturers to ask their clients and dealers to fill in the survey. A friendly nudge towards the online survey can work wonders...

THE BRIBES

Fill in the survey... and you could win!

Every respondent who gives their mobile number will be entered into our prize draw to win one of these fantastic prizes. Remember, Car Dealer Power is 100 per cent confidential and your number will ONLY be used to inform you if you’ve won a prize.

Alfa Romeo Stradale Touring Bike Worth £540, this Alfa Romeo bike will bring some Italian style to your commute to the showroom! The Alloy 7005 tig welded framed bike has low profile tyres for road riding, v-brakes, and suspension.

Signed Red Bull Shirt

by Vettel and Webber Renault has donated a Red Bull team shirt signed by Formula 1 World Champion Sebastian Vettel and his team mate Mark Webber. Pictured is the shirt before it was signed. We’ll make sure the winners get the one with pen on it.

Tickets to Cholmondeley Pageant of Power We’ve got five pairs of tickets to this year’s Pageant of Power – the Goodwood of the north. You’ll see supercars and displays at the Cheshire event held from June 15-17. Winners get tickets for the Sunday worth £60.

Box of Armor All Cleaning Kit Armor All have put together eight boxes of cleaning products (worth £40 each) for us.

Inside each box are Dashboard Wipes, Carpet and Seat Wipes, Quick Shine Wipes, Glass Cleaner, Wheel Foam, Tire Foam, Protectant and a Multipurpose Cloth. A sample of the wipes comes free with this magazine!

Pair of tickets to Beaulieu Visit the National Motor Museum’s fantatic exhibitions which this year includes a Bond In Motion display. It’s filled with 50 cars from the films. We have one pair of adult tickets. worth £38.

Thanks to: Alfa Romeo, alfaromeo.co.uk; Renault, Renault.co.uk; Cholmondeley Pageant of Power, cpop.co.uk; Armor All, Armorall.eu; Beaulieu, beaulieu.co.uk

CarDealerMag.co.uk | 09

SURVEY.

Car Dealer Power in association with..

in association with G-3 GLasscoat

The easiest way to fill in the survey is online at CarDealerPower.com

Your Mobile Number (needed to be entered into prize draw)…………………..........................................

CAR MANUFACTURER 1. Which car manufacturer do you represent? If it’s more than one, please fill in the survey again. You can do this online at CarDealerPower.com  Abarth  Alfa Romeo  Aston Martin  Audi  Bentley  BMW  Chevrolet  Chrysler  Citroen  Corvette  Ferrari  Fiat  Ford  Honda  Hyundai  Infiniti  Isuzu  Jaguar  Jeep  Kia  Land Rover  Lexus  Lotus  Mazda  Mercedes-Benz  MG  Mini  Mitsubishi  Nissan  Perodua  Peugeot  Porsche  Proton  Renault  Saab  Seat  Skoda  Smart  Ssangyong  Subaru  Suzuki  Toyota  Vauxhall  Volkswagen  Volvo  Other (please name) 2. How do you rate your manufacturer with regards to its finance offers?  Poor  Average  Good  Excellent  Faultless Comments: ............................................................. ...................................................................................... ...................................................................................... ......................................................................................

10 | CarDealerMag.co.uk

3. How do you rate the warranty your manufacturer offers? Does it cover everything it needs to and is it easy to administer?  Poor  Average  Good  Excellent  Faultless Comments: ............................................................. ...................................................................................... ......................................................................................

4. How would you rate your car manufacturer on its aftersales support?  Poor  Average  Good  Excellent  Faultless Comments: ............................................................. ...................................................................................... ...................................................................................... ......................................................................................

5. How do you rate your car manufacturer’s marketing overall?

Consider the support it offers you for advertising, the offers it comes up with and the marketing schemes it has developed.  Poor  Average  Good  Excellent  Faultless Comments: ............................................................. ...................................................................................... ...................................................................................... ......................................................................................

8. How good is your manufacturer with regards to the internet? Consider the support it gives your online offering, how leads are fed down to you and the quality of its website.  Poor  Average  Good  Excellent  Faultless Comments: ............................................................. ...................................................................................... ...................................................................................... ......................................................................................

9. How do you rate the supply of new cars from your manufacturer?  Poor  Average  Good  Excellent  Faultless Comments: ............................................................. ...................................................................................... ...................................................................................... ......................................................................................

10. How well does it manage used cars?

Consider how it manages stock and its used car scheme.  Poor  Average  Good  Excellent  Faultless Comments: ............................................................. ...................................................................................... ...................................................................................... ......................................................................................

6. How do you rate your car manufacturer’s brand awareness?  Poor  Average  Good  Excellent  Faultless Comments: ............................................................. ...................................................................................... ......................................................................................

11. How do you rate your manufacturer’s forward planning?  Poor  Average  Good  Excellent  Faultless Comments: ............................................................. ...................................................................................... ...................................................................................... ......................................................................................

7. How accessible is your manufacturer?

Can you get hold of the right people at head office? Do they listen to what you have to say?  Poor  Average  Good  Excellent  Faultless Comments: ............................................................. ...................................................................................... ......................................................................................

12. How do you rate the requirements your manufacturer imposes on you?  Poor  Average  Good  Excellent  Faultless Comments: ............................................................. ...................................................................................... ...................................................................................... ...................................................................................... ......................................................................................

13. What do you think of the bonus structure put in place by your car manufacturer?  Poor  Average  Good  Excellent  Faultless Comments: ............................................................. ...................................................................................... ...................................................................................... ......................................................................................

14. Finally, how do you rate the return on investment from your manufacturer?  Poor  Average  Good  Excellent  Faultless Comments: ............................................................. ...................................................................................... ...................................................................................... ......................................................................................

15. Which car – from any manufacturer – do you think deserve the title of the Car Dealer Power Car of the Year? ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ......................................................................................

16. Which manufacturer do you think has come up with an initiative this year that deserves recognition? ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ......................................................................................

17. Which manufacturer has produced the best marketing scheme this year? ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ......................................................................................

If you represent more than one manufacturer you can fill in this survey again online by visiting CarDealerPower. com, photocopy these pages or email james@blackballmedia.co.uk for a copy. All requests will be treated confidentially. Any comments you wish to make will be most welcome. These may be used in the magazine but will be attributed anonymously.

motors.co.uk The used car site that’s used more.

With over 3,500 dealers advertising 160,000 cars, motors.co.uk is the UK’s second biggest used car network. Every month, 1.35 million car buyers use it to search for a car, plus it reaches a further 19 million readers weekly via our regional news partners. Now, isn’t that useful?

There are many ways to search at

Your search ends here.

Traffic figure: comScore October 2011

SURVEY. The SUPPLIERS

This section is about finding the best suppliers. The winners will not be decided solely by being the most popular, but by how good they are at providing you with a service. We’ll be naming a winner for each category and two highly commended places which will be announced at the Car Dealer Power Awards ceremony. For each category, first tell us who you use, then how you rate their service and finally add any comments you have.

1. Warranty Supplier Who do you use?................................................................................

How do you rate the service in the following categories?

Poor Average Good Excellent Service     Product     Website     Admin     Price     Comments:.............................................................................................. ...................................................................................................................... ......................................................................................................................

2. GAP Supplier Who do you use?................................................................................

How do you rate the service in the following categories?

Poor Average Good Excellent Service     Product     Website     Admin     Price     Comments:.............................................................................................. ...................................................................................................................... ......................................................................................................................

3. Website Design For Franchised Dealers Who do you use?................................................................................

How do you rate the service in the following categories?

Poor Average Good Excellent Service     Product     Website     Admin     Price     Comments:.............................................................................................. ...................................................................................................................... ......................................................................................................................

4. Website Design For Independents Who do you use?................................................................................

How do you rate the service in the following categories?

Poor Average Good Excellent Service     Product     Website     Admin     Price     Comments:.............................................................................................. ...................................................................................................................... ......................................................................................................................

5. Search Optimisation Services Who do you use?................................................................................

How do you rate the service in the following categories?

Poor Average Good Excellent Service     Product     Website     Admin     Price     Comments:.............................................................................................. ...................................................................................................................... ......................................................................................................................

12 | CarDealerMag.co.uk

6. Dealer PR Agency (press releases etc) Who do you use?................................................................................

How do you rate the service in the following categories?

Poor Average Good Excellent Service     Product     Website     Admin     Price     Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

11. Best Finance Marketing Initiative Who do you use?................................................................................

How do you rate the service in the following categories?

Poor Average Good Excellent Service     Product     Website     Admin     Price     Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

7. Dealer Marketing Agency (advert design, concepts) Who do you use?................................................................................

How do you rate the service in the following categories?

Poor Average Good Excellent Service     Product     Website     Admin     Price     Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

12. Online Advertising (New Cars) Who do you use?................................................................................

How do you rate the service in the following categories?

Poor Average Good Excellent Service     Product     Website     Admin     Price     Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

8. Prime Finance Who do you use?................................................................................

How do you rate the service in the following categories?

Poor Average Good Excellent Service     Product     Website     Admin     Price     Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

13. Online Advertising (Used Cars) Who do you use?................................................................................

How do you rate the service in the following categories?

Poor Average Good Excellent Service     Product     Website     Admin     Price     Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

9. Sub-Prime Finance Who do you use?................................................................................

How do you rate the service in the following categories?

Poor Average Good Excellent Service     Product     Website     Admin     Price     Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

14. Most Dealer Friendly Online Advertising Portal Who do you use?................................................................................

How do you rate the service in the following categories?

Poor Average Good Excellent Service     Product     Website     Admin     Price     Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

10. Best Finance Services & Tools Who do you use?................................................................................

How do you rate the service in the following categories?

Poor Average Good Excellent Service     Product     Website     Admin     Price     Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

15. Specialist Online Ad Site (contract hire, leasing, etc) Who do you use?................................................................................

How do you rate the service in the following categories?

Poor Average Good Excellent Service     Product     Website     Admin     Price     Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

Car Dealer Power in association with..

16. Used Car Valuations Services Who do you use?................................................................................

How do you rate the service in the following categories?

Poor Average Good Excellent Service     Product     Website     Admin     Price     Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

21. Training Company Who do you use?................................................................................

How do you rate the service in the following categories?

Poor Average Good Excellent Service     Product     Website     Admin     Price     Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

26. Dealer Management Product (DMS systems) Who do you use?................................................................................

How do you rate the service in the following categories?

Poor Average Good Excellent Service     Product     Website     Admin     Price     Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

17. Provenance Checks Who do you use?................................................................................

How do you rate the service in the following categories?

Poor Average Good Excellent Service     Product     Website     Admin     Price     Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

22. Online Remarketing Who do you use?................................................................................

How do you rate the service in the following categories?

Poor Average Good Excellent Service     Product     Website     Admin     Price     Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

27. Product Innovation of the Year Who do you use?................................................................................

How do you rate the service in the following categories?

Poor Average Good Excellent Service     Product     Website     Admin     Price     Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ..................................................................................................................... .......................................................................................................................

18. Lubricants Who do you use?................................................................................

How do you rate the service in the following categories?

Poor Average Good Excellent Service     Product     Website     Admin     Price     Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

23. Physical Auctions Who do you use?................................................................................

How do you rate the service in the following categories?

Poor Average Good Excellent Service     Product     Website     Admin     Price     Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

28. Supplier Newcomer of the Year Who do you use?................................................................................

How do you rate the service in the following categories?

Poor Average Good Excellent Service     Product     Website     Admin     Price     Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

19. Recruitment Agency Who do you use?................................................................................

How do you rate the service in the following categories?

Poor Average Good Excellent Service     Product     Website     Admin     Price     Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

24. Best Trade-to-Trade Lead Generation (leads for disposal of your trade cars) Who do you use?................................................................................

How do you rate the service in the following categories?

Poor Average Good Excellent Service     Product     Website     Admin     Price     Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

29. The Extra Mile Award (The company that has gone the extra mile for you somehow this year) Who do you use?................................................................................

How do you rate the service in the following categories?

Poor Average Good Excellent Service     Product     Website     Admin     Price     Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

20. Paint Protection Who do you use?................................................................................

How do you rate the service in the following categories?

Poor Average Good Excellent Service     Product     Website     Admin     Price     Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

25. Best Consumer Lead Generation (leads for people to sell cars to) Who do you use?................................................................................

How do you rate the service in the following categories?

Poor Average Good Excellent Service     Product     Website     Admin     Price     Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

If you represent more than one manufacturer you can fill in this survey again online by visiting CarDealerPower.com, photocopy these pages or email james@blackballmedia.co.uk for a copy. All requests will be treated confidentially. Any comments you wish to make will be most welcome. These may be used in the magazine but will be attributed anonymously.

Please send completed surveys to: Car Dealer Mag, Endeavour Quay, Mumby Road, Gosport, PO12 9DE

CarDealerMag.co.uk | 13

0800 021 0888

DASHBOARD.

Heavisides

warranty wonders

Encouraging signs as we hope for stable conditions

I

t was encouraging to see that in January, new car registrations stabilised and I sincerely hope that this is the start of better times to come for our industry.

While it’s not a surprise that when the economy takes a tumble consumers rein in spending on cars and houses, we could all use more stable conditions.

At the same time, research from Motors.co.uk suggests that a quarter of motorists are struggling with the costs of keeping their cars on the road. They discovered that eight out of 10 drivers were worried about rising fuel costs, 38 per cent were worried about insurance and almost one-in-five was concerned about the state of the roads.

As a sector, we should see this as an opportunity. None of these major concerns relate to products or services provided by dealers and we’re ideally positioned to offer customers a helping hand to keep their motoring affordable. With drivers worried about what the future holds, there’s never been a better time to make sure customers are able to budget for their monthly motoring costs by taking away as much uncertainty as possible.

The obvious starting point is extending warranty cover to help against unexpected repair bills but customers are also eager for help with scheduling maintenance costs. The recent growth in service plan sales shows that there is strong customer appetite for budgeting for future costs. Canny customers have an eye on the long-term value of their car too, so protecting bodywork through cosmetic warranty or paint protection is another opportunity.

What do all these products have in common? Well, aside from the fact that they can all add to a dealer’s profitability per retail sale, they all provide customers with protection against rising future costs and that’s precisely what drivers are looking for.

At a time when good news can be thin on the ground, it’s good to know that as an industry we can help give something back to our customer base and still make a return in the process.

Now that’s what I call encouraging.

‘We’re ideally positioned to offer customers a helping hand to keep their motoring affordable.’

Who is Tim Heavisides?

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

16 | CarDealerMag.co.uk

Peugeot chief: We won’t axe dealers to keep costs down Zimmerman tells us he won’t be following his French rival’s lead by axing sites

P

eugeot’s MD has revealed he won’t follow Renault in slashing his dealer network by a third.

Speaking to Car Dealer, Tim Zimmerman said his firm is looking at ways of cutting costs – but that won’t mean axing dealers like French rivals Renault.

‘Every manufacturer needs to be looking at its strategy for two key reasons’ Zimmerman told us.

‘Firstly, emerging markets are exploding and European manufacturers have to invest in these. Secondly, mature markets are getting more difficult. In reality, all manufacturers are doing this. We’re looking at how to cut costs.’

In October it was announced that Peugeot Citroen planned to cut 6,000 jobs to save 800m euros in 2012.

‘We are also investing 3.6bn euros in developing markets and we need to finance this – so we are looking at how we need to cut our cloth in Europe. But that doesn’t involve cutting dealers,’ said Zimmerman.

‘Although we are looking at ways of streamlining our business.’

Zimmerman explained how the French firm is reducing costs for dealers by cutting unnecessary expenditure.

‘It’s a lean management approach, but not at the cost of offering value to

customers,’ he said. ‘We are looking at reducing the number of demonstrators dealers have, for example. By optimising the use of them, dealers can save £10k a year as demonstrators are the biggest cost after premises and salaries. We are being practical in this area – we are already providing customers with online demonstrator booking.’

Zimmerman also explained that along with cutting expenditure, Peugeot is freezing costs for dealers. Despite national inflation of five per cent, Peugeot is freezing charges to the network ‘wherever possible’ such as training.

Neil Moscrop, Peugeot UK’s sales director, added: ‘If you anticipate growth in the future, then you will need those dealers. Our dealers believe the Peugeot investment still remains a good one.’

‘There will be no cut-price 207 alongside 208’ PEUGEOT’S 207 will not be offered as a budget alternative to the new 208, the firm’s UK boss revealed.

While the brand-new 208 arrives in June, Peugeot MD Tim Zimmerman has ruled out offering the 207 as a cheaper alternative, as Ford did with the Focus.

‘When the 207 was launched, we offered a 206 Plus for a short time,’ said Zimmerman. ‘But with the 208 we will not be doing a similar thing for two reasons.

‘Firstly we think the

207 would not be complementary with the brand-new 208. And secondly we’ve got models in A, B and C-segments, and doubling up in one segment is just too much for us.’

However, Zimmerman did reveal the 207 CC and the SW will continue for a period of time and added that Peugeot UK has a lot of confidence in the new car.

‘We are aiming at the 25 to 35year old market as they are economically active,’ he added.

Harratts expands Nissan network bit.ly/HarrattsNissan

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

January 16-20 NISSAN announced it’s testing a brand new product – a scratch-resistant iPhone case. It could go on sale later this year if trials among journalists are successful.

The government announced it’s extending the plug-in grant to cover vans. Electric vans will benefit from an £8k discount.

The most powerful SLK – the 55 AMG – was made available for order, priced at £54,950. The 421bhp sports car takes 4.4 seconds to get to 60mph, is limited to 155mph, and emits 195g/km of CO2.

Citroen confirmed prices for its extra special DS3. Badged ‘Ultra Prestige’, the car went on sale priced from £20,700.

UK car production was up 5.8 per cent in 2011, revealed the SMMT. Total car production rose to 1,343,810 units, while UK engine production was also up by 4.9 per cent to 2,504,054.

Renault released their pricing structure for the new Twingo. The range begins at £10,350 for the Dynamique 1.2-litre.

It was revealed Vauxhall’s Luton and Ellesmere Port factories accounted for 57 per cent of LCV production in 2011.

January 23-27 HYUNDAI’S all-new i30 hatchback will cost from £14,495 when it arrives in showrooms in March.

The entry-level model will be the 98bhp 1.4-litre petrol Classic while the range will top out at £20,295 for the 1.6-litre CRDi Blue Drive Style Nav. Jaguar announced it is making its XF range even more broad by adding SE Business and Sport trims. They start at £31,500 and £34,950 respectively.

Japanese firm Mitsubishi announced volumes increased by seven per cent in 2011 in Europe compared to 2010. Sales were up to 149,967 compared to 140,311 for the previous 12 months.

Audi added a technology pack to its high-end A6 and A7 ranges. It costs £3,250 and includes added safety and multimedia features.

With a year-long TV campaign, Alfa Romeo announced it will be highlighting the rational reasons why people should buy their cars.

Subaru launched a new three-year aftercare package called ‘Everything Taken Care Of’.

It includes a vast range of cover – from key protection to winter tyre storage – and is worth £7,000. It can also be passed onto subsequent owners.

January 30–February 3 FORD stated it plans to cut landfill waste by 70 per cent, and cut water use by 30 per cent in its

Luton’s booming; as is UK car production; Twingo and Panda prices are out too

MERCEDES

Story of the month

MERCEDES tuner AMG has been an untapped opportunity for the German maker, the firm’s sales director has said.

Speaking exclusively to Car Dealer, Mike Whittington told us the AMG brand has been a chance waiting to be exploited up until now, and Whittington plans to double AMG sales this year. Full interview, p21.

European plants within five years.

The safest cars of 2011 were revealed by Euro NCAP. 53 new cars were tested including 11 electric cars.

Subaru announced pricing and specification levels for its new crossover, the XV. It’s priced from £21,295 for entry level 1.6-litre S models, and rises to £29,995 for the 2.0-litre diesel SE Lux Premium.

Nissan added another special edition to its Juke range. The Shiro boasts white detailing and prices start at £17,695.

The government decided to scrap controversial plans to change the MOT. The decision not to elongate the frequency between tests was widely welcomed by motoring organisations.

Citroen issued prices and specifications for its

brand new DS5 model. A variety of engines will be available including the Hybrid4 model which emits just 99g/km of CO2. Prices start at £22,400 and rise to £28,000.

February 6–10 SEAT unveiled the five-door version of its Mii city car. The range incorporates the fuel-sipping Ecomotive version, although pricing is yet to be announced.

New car registrations rose 0.03 per cent in January (p66). Despite the small rise, it was welcomed by the SMMT who said the figures showed the market was stabilising.

To celebrate its 10th anniversary on sale, Westminister, Autobiography, and Supercharged Autobiography special editions were created of the Range Rover. Extras include more entertainment features and styling.

Mitsubishi revealed it will not allocate a new model to its subsidiary plant in Belgium from 2013 onwards.

Sales of Isuzu pick-up vehicles rose by 11 per cent in 2011, it was announced. The result put the UK at the top of the firm’s European sales chart.

Fiat published prices for its new Panda.

When it goes on sale at the end of February, the car will be priced from £8,900 for the 69bhp 1.2litre Pop model.

CarDealerMag.co.uk | 17

DASHBOARD.

New partnerships boost Motors network Online classified portal has worked hard to boost its advertising web to put your stock in front of thousands more buyers, reports JAMES BATCHELOR

U

sed car advertising website Motors.co.uk is helping make dealers feel more confident in selling cars by having the right attitude.

‘Last year was very important for us as we made a number of investments and went to market with a number of initiatives,’ says Phill Jones, Motors.co.uk’s commercial director. ‘We feel we have real momentum at the moment.’

Along with growth in traffic, vehicles and dealers, the initiatives included new messages to the public and new deals with the car advice website Honest John – the latter of which joined another of Motors.co.uk’s partnerships, namely Parkers.co.uk.

New partnerships are good news for dealers using the Motors.co.uk platform. Such associations reach further into consumers’ research habits, and by Motors.co.uk appearing on websites consumers use when they are finding out what the experts think of a car, consumers are more likely to be directed to a dealer’s classified advert on Motors.co.uk. That’s not to mention the fact the firm is powering the used car search engines on Mail Online, LocalPeople and Thisis.

‘Our partnerships with regional newspaper groups also grew as did our sales teams,’ explains Jones. ‘Regional newspaper groups are very important to us as they provide a local audience and a sales team, and the more newspapers we’re in, the more promotion we get.’

And more promotion means more potential customers for dealers. Motors.co.uk currently has partnerships with more than 200 local newspapers, touching 38 per cent of the UK population. And only in November the firm announced it had partnered with Trinity Mirror Regionals – one of the UK’s largest publishers.

The firm introduced a new advertising campaign that focused on buyers’ emotions, and a nationwide search to find local heroes – people in communities who went above and beyond the call of duty – was also created.

Jones is confident that Motors.co.uk can be the perfect partner for dealers in 2012 too.

Although always high on their agenda, the firm will be concentrating on maximising dealer spend as much as possible. ‘Dealers need to know where their marketing spend is going,’ says Jones.

‘Marketing spend should be a revenue generator – so I would recommend dealers have a mix. This 18 | CarDealerMag.co.uk

Motors Network

can be different portals, online adverts and local press. It’s okay to be getting a response, but where is it coming from and at what cost?’

Dealers who use Motors.co.uk’s software are notified on how often their cars are searched for, viewed, the details printed off, and how many times a customer calls. That means a dealer can price up exactly how much they are spending on advertising. The firm also predicts that there will be a growth in the number of consumers using mobiles to view dealer stocks, and says there will be even more research carried out online by consumers.

Another big goal in 2012 for the Car Dealer Power winning firm is very much Google-related.

‘The last 12 months have been tough for dealers,’ says Jones.

‘Not least in the online arena.’

Major changes to the way Google functions have seen many dealers fall by the wayside; and with more changes on the way with the advent of Google+ (see right), dealers need a service they can rely on.

‘‘

This is where services such as Motors.co.uk’s very own Autoexposure can help. It’s a service that can build websites for dealers simply and in a bold way, and, crucially, work with Google’s technology in the most effective way possible.

It’s also a service that has won a number of key profile accounts in 2011.

‘We will also be putting live a social media strategy this year,’ adds Jones. ‘Social media is always high in our minds as we feel social media embraces much of what we stand for. But it’s growing, and we plan to run some fun stuff with videos and competitions. We want to be touchy feely with the consumer – but, above all, we want to interact with them.

‘With social media you have to stay flexible. We have spent a lot of money and time on social media and that speaks to the buyers we are trying to tempt – and that is the nervous buyer. We all own a car, but not all of us are petrolheads.’

Dealers need to know where their marketing spend is going.

Motorists are struggling with expense of running their car bit.ly/priceycars

paper partners

GOOGLE WARNING

Beware of the importance of Google+ to search results MOTORS.co.uk is warning dealers to review their SEO strategy, as Google seeks to closely integrate Google+ into their search index.

The search engine giant has been accused by various analysts of ‘warping’ its search results by boosting posts from its Google+ social network in its standard search results.

The changes – which are presently only being implemented in the US via google.com – mean that when people search for information, particularly about individuals, while logged in to Google+, results from the social network will be prominently displayed on the first page of results, along with other results from the wider web.

That is likely to have the effect of making existing Google+ users more likely to use the network, says Motors.co.uk, as they will see fewer results from outside it when they search for information. This is particularly important as around 90 per cent of clicks from search originate

from the first page of results.

There has been a gradual shift from Google to introduce personalisation, meaning that there is no longer a single ‘correct’ result from search. It means that dealers need to be more thorough in investigating the traffic gains from any SEO strategy – just because something ranks highly on their own computer, doesn’t mean that is what the rest of the world will see.

Motors.co.uk’s Phill Jones said: ‘Google seems to be forcing Google+ into search, making it vital for dealers to consider integrating Google+ into their site. The threshold for relevancy will be higher, so dealers need to make sure that the site has relevant content and any links pointing to the site are complementary. This should apply anyway, but the rewards and penalties will be higher.

‘This is a landmark statement from Google that could change the way search works forever. The change is being trialled in the USA first, so is not immediately applicable today, but should be considered in any SEO planning.’

Motors.co.uk has a popular iPhone app for searches CarDealerMag.co.uk | 19

Why Parrot hands-free?

PARROT CK3100

PARROT MKi9200

Maps

s Compatibility: All Parrot products are compatible with every brand of mobile phone.

Regular free software updates ensure the highest possible compatibility at all times. s Discreet, Easy Installation: Parrot strive to ensure compatibility with all models of vehicles. Steering wheel controls are also available.(1) s Simple, automatic connectivity: Once paired the Parrot system will automatically recognise and connect the mobile phone. s Wireless music: The MKi & ASTEROID ranges have advanced music playback functionality and can play music from a variety of sources through the vehicle’s speakers. s Advanced voice recognition and excellent audio quality from the World leader in Bluetooth hands-free systems.

To find out how Parrot can help your business generate more revenue contact us at sales.uk@parrot.com Available as an optional extra on the Parrot CK3000, Parrot CK3100 and MKi Series. “Made for iPod” and “Made for iPhone” mean that an electronic accessory has been designed to connect specifically to iPod, iPhone, respectively, and has been certified by the developer to meet Apple performance standards. Apple is not responsible for the operation of this device or its compliance with safety and regulatory standards. iPhone and iPod, are trademarks of Apple Inc., registered in the U.S. and other countries. The Bluetooth word mark and logos are owned by the Bluetooth SIG, Inc. and any use of such marks by Parrot is under license. COYOTE, iCOYOTE and COYOTE logo are trademarks of COYOTE. LIVERADIO, ORANGE LIVERADIO and ORANGE LIVERADIO logo are trademarks and/or registered trademarks of France Telecom. Parrot trademarks figuring on this document are the property of Parrot SA. Other trademarks and trade names are the property of their respective owners. Parrot SA - RCS PARIS 394 149 496.

(1)

www.parrot.com

DASHBOARD.

Aston Martin dealer expands business bit.ly/AstonExpands

We are in a great place

Mercedes Benz sales director Mike Whittington isn’t referring to the firm’s UK base in Milton Keynes, rather the fact that he has high hopes of a successful 2012

Y

ou sold more cars in 2011 and your market-share was up compared to 2010. What was the reason for this?

There were a number. Firstly we had a renewed focus in pushing for volume after a record year in 2010. We set ourselves a target of four per cent market share during 2011 and we returned 4.2; so we were very happy with that given the market.

We also had stronger retail and fleet programmes during 2011 that contributed. We did a lot of work surrounding our fleet strategy in making it a better platform for our business moving forward.

And we also had great successes with our volume models – C-Class performed very strongly in both retail and fleet sectors and that allowed us to grow our volumes.

Was there a particular model that, in its overall performance, took you by surprise?

There wasn’t one particular car that took us by surprise, so to speak. But, if you look at previous years, we weren’t getting enough out of C-Class and E-Class so we worked hard in 2011 on where we should position them for retail and fleet customers. We also had a good year on some of our bigger models such as the R-Class and the G-Class. They weren’t massive volumes but they certainly showed double-digit growth which was good. 2011 was also the best year for C-Class estate.

Isn’t growth in R-Class and G-Class surprising considering the current market?

Well, when I look back at the year, pretty much across the whole model range, we saw good growth. The only models we saw a decline on, interestingly, were down to supply. We had a challenge throughout the year where we didn’t have enough supply of M-Class, A-Class – because we are ramping up towards the production of the new model – and B-Class as that is on run-out too.

That gave us a bit of a constraint – nevertheless we were able to pick that up with C-Class and above models.

‘‘

What are your expectations for 2012?

We have an ambition to achieve 90,000 vehicles, and a 4.5 to 4.6 per cent market share – but that’s dependent on where the market ends up, and that is a whole other

crystal ball. Our assumption is that the 2012 market will be around the two million vehicles mark. I will be looking for growth across all model lines but there are a couple of exceptions, for example the C-Class coupe will have its full year, and the new B-Class will be arriving. But my biggest focus will be our performance in growing our fleet business.

How will you grow your fleet business?

Firstly, I want our growth to be across the model range – from B-Class, through to C-Class and E-Class, to S-Class. We have now restructured our fleet team and I now think we have systems in place to grow, and we will be launching a few new exciting initiatives this year to get us back on the fleet map within the marketplace.

Our plea to our network is to continue to support our new programmes around marketing, fleet and our retail strategy.

Would you ever consider producing a fleet-specific model?

That is interesting because we were discussing this a lot internally. We haven’t produced a specific fleet model in the past, but what we have done recently – and we are looking at in the next 12 months – is around high-value product propositions.

For example, on our E-Class, we have an Executive SE model that is largely designed around the fleet market but we do make it available for retail customers.

That’s probably as close as you can get in terms of price,

positioning and equipment, and it is something we are hoping to drive our fleet business forward with – and we will be looking to do this with B and C-Class too.

Do you plan to add more dealers to your network in 2012?

We currently have around 125 dealers, across 32 market areas, and run by 25 partners, but we’re not looking to grow the number of sites. We have a very stable network at the moment and, due to the 25 partners often covering different areas, we have a very close working relationship with them. We have done all the hard work in terms of investment over the last 10 years, and even with our predicted growth and new models over the next five years, we don’t see the need to expand or invest.

What is your message to your dealers for the year ahead?

We are in a great place with our network. They have seen a change within the market and they are on a journey with us. I think, if you look back over the last 10 years, we have been pretty steady as a business, but we now have the product, the brand, and the support from Stuttgart to grow significantly.

Our network has worked very hard during 2011 and are very excited for 2012, and our plea to our network is to continue to support our new programmes around marketing, fleet, and our retail strategy, and to keep an eye on the opportunities available within the market place.

We’ve allowed our competitors to grow over the last 10 years – we now need to regain market share and win that back. [CD] CarDealerMag.co.uk | 21

IT AIN’T ROCKET SCIENCE

A STREAMLINED, FLEXIBLE AND HASSLE-FREE ONLINE SERVICE BOOKING SYSTEM. GForces’ NetDirector Service Booking removes the need to speak to a service advisor, enabling customers to conveniently book online by entering their registration details, choosing their nearest branch and adding any additional options. For example, MOT, oil change or air-con recharge. Customers can also define which type of transport options they want – collection, delivery or ‘while you wait’, and can even book a courtesy car. The system shortens the service booking process for dealers and reduces admin costs.

The system is fully flexible and boasts an array of benefits for dealers: f Active 24-7

f Offers full reporting

f Allows for seasonal promotions

f Integrates into any website

f Tailored responses via email to both customer and branch

f Lead times can be set to avoid over booking

f Facility to book under warranty

Call GForces on 0845 658 9290 or visit www.gforces.co.uk to find out more.

FINANCE. APPOINTMENT

Ssangyong selects its preferred provider SSANGYONG Motor UK Ltd has selected GMAC UK plc, a subsidiary of Ally Financial Inc., to be its preferred financing provider for SsangYong vehicles in the UK. GMAC UK will provide wholesale financing for dealers and retail financing for customers.

Paul Williams, CEO of SsangYong Motor UK, said: ‘We are delighted to have appointed GMAC after a rigorous selection process. Working with GMAC will support the growth of our business and help our dealers fund their inventory, while giving SsangYong customers the opportunity to obtain retail financing through a trusted company.

‘This agreement allows us to offer a competitive range of retail finance products.’

Ed Paulat, GMAC UK managing director, said: ‘We look forward to establishing a strong relationship with SsangYong Motor dealers and offering attractive financing programmes for their customers.

‘This new affiliation represents another step in GMAC expanding its customer base and further leverages our core competency in auto financing.’

Clients on a budget want affordability, not ownership Dealer finance has never been more popular, according to FLA figures

Car buyers are favouring dealer finance options

T

he finance route to purchase new cars is as popular as ever.

The latest figures released from the Finance and Leasing Association (FLA) show that the proportion of consumers using dealer finance to buy new cars in 2011 was 62.9 per cent.

That’s the highest since FLA records began, and almost 10 percentage points higher than 2010’s proportion, which was 53.3 per cent.

It’s good news for dealers as it means that more people are going to dealers for their finance, rather than using personal loans or savings.

Personal contract purchase remains the most popular motor finance product, but leasing grew by 48 per cent in the new car market in 2011 compared with 2010, although it is a very

‘‘

small part of the market, now accounting for 6.5 per cent of all new car dealer finance (up from 4.6 per cent last year).

Between the business and consumer car markets, FLA members financed 1.67m cars in 2011, with 19.8bn of funds.

December 2011 was also a good month as the number of cars financed was 33,090 – up four per cent on December 2010. Meanwhile, in quarter four as a whole, 113,994 cars were bought on

Value-formoney offers and flexible finance deals have attracted customers.

finance – up four per cent.

Paul Harrison, head of motor finance at the Finance & Leasing Association, said: ‘Despite some of the gloomy headlines on retail confidence, growth in the 2011 car finance market was driven by consumers.

‘Value-for-money offers and flexible finance deals have attracted customers to showrooms and led to an almost 10 percentage point increase (to 62.9 per cent) in the popularity of forecourt finance for new cars.

‘Consumers are looking for finance that suits their budget, and often turn to leasing or personal contract purchase, which suggests that affordability is a greater draw than ownership.’

Who’s best at negotiating a deal on a new car? Men or women?

A BATTLE of the sexes has recently broken out at BMW Financial Services, with two of the senior figures there debating who fares better on the forecourt when buying a new car – men or women?

Speaking up for women, Sophie Grimshaw says: ‘Women are more than able, and not afraid, of negotiating a tough deal; and they

are often more cautious and better prepared as they have taken the time to do their research.

‘We recently conducted an independent survey with British car owners and the results showed that women take almost two months to consider and research the purchase, as opposed to men who take two weeks.’

However, Joe Pattinson believes:

‘I’m the first to admit that gender roles are increasingly blurred but there is nothing wrong with admitting where your weaknesses are, both men and women alike – and there’s no harm in turning to the man in your life for advice. Studies show that women tend to agree with this sentiment and many feel uncomfortable buying a car.’

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

24 | CarDealerMag.co.uk

..in association with

DEAL FINDER

Latest finance deals on compact MPVs FORD C-MAX THIS is the newest car featured here and incorporates the new global Ford Focus looks with the practicality of an MPV. In five-seat trim it’s a striking-looking car, and, just over 12 months since it was launched in the UK market, the Blue Oval has a new finance offer on it.

Available on the 104bhp, 1.6-litre petrol Zetec model – which comes with 16-inch alloys, quickclear windscreen and front fog lamps – customers can get into a C-Max five-seat for 24 monthly payments of £269 at 4.9 per cent APR, after a deposit of £3,324.42 and Ford also contribute a

further £1,000. Mileage is limited to 9,000 per annum and charged at 9.60 per mile if the quota is exceeded, and the optional final payment comes in at £6,583. The total amount payable is £16,373.42.

A credit facility fee of £139 and an option-to-purchase fee of £10 is also charged, and the optional final payment figure stands at £4,378 – meaning the total amount payable is £20,747.

SEAT ALTEA THIS is the oldest model featured here, but it’s still a looker, we feel.

The Spanish firm has slapped a tempting finance deal on its SE model fitted with the 1.6-litre, 103bhp Ecomotive diesel unit.

The car comes with 16-inch alloys, dual zone climate control and cruise control.

A deposit of £3,787.86 is required from the customer, and this is followed by 41 monthly payments of £269 at 8.9 per cent APR, along with an acceptance fee of £125.

An option-to-purchase fee of £60 also applies to the car, and the optional final

time is money

Keep looking for growth

H

RENAULT SCENIC WITH the Scenic being its only MPV contender, Renault has decided to give the car a bit of a refresh stylistically.

There’s also a new finance deal available on the 1.6-litre, 108bhp Dynamique TomTom model.

As well as boasting TomTom sat-nav, the car comes with LED lights and rear parking sensors.

Customers can jump into the car after making a deposit of £329, and after Renault has thrown in a £2,180 deposit contribution. An acceptance fee of £99 is charged, and 48 monthly payments of £329 follow at 11.3 per cent APR.

Meldrum

amount payable comes to £4,500.

The total amount payable by the customer is £19,501.86 and three years’ free servicing is also thrown in.

ave you set out your business plan for 2012 with survival in mind or are you looking to grow your business this year?

I read recently that ‘seeking security is the low road to failure’ and I have to say that I fully agree with that statement.

I believe true leadership is about continually looking for growth in all its forms: business volumes, market share, ROI and profit margins as well as personal knowledge and many other life experiences (I’m planning some flying lessons this year).

Remember however, it is not enough to simply set out your growth plans then sit back and expect others to deliver the increase on their own – as leaders we must lead by example and we should show the way by how we act and not merely using bold words alone.

So having set out the goals, objectives and the vision for our businesses, we ought to take an active part in the pursuit because without the will to personally chase down business growth we are likely to condemn our organisations to the inevitable ‘low road to failure’.

As leaders we must understand the future needs of the market in which we operate and be willing to adapt our sales and marketing functions to ensure we make the very best use of any positive changes that are happening around us.

Let’s take non-prime lending for example: There are some car dealers who are unable to estimate the enormous growth potential that will come from servicing this increasing customer base.

I’d suggest that most would be far too conservative in their estimate which is why the few, astute, car dealers who have already adapted their strategy are enjoying the benefits today. Contact us anytime to find out how we can help you grow.

‘It is not enough to simply set out your plans, then sit back.’

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 | 25

dashboard.

Golf gives dealers a chance bit.ly/Golfchance

Toyota slammed in Sunday Times article

Council says

Toyota dealer council hits back at claims

Dealers blow the lid on ‘cover up’, claims paper

T

oyota has refuted claims its dealers were told not to fix defects under warranty unless a customer complained.

The Sunday Times published an Insight investigation on February 5 in which Toyota dealers and technicians lashed out at the Japanese car giant’s ‘policies’.

The dealers claimed that they had been asked to ignore defects on cars they spotted during servicing – and only fix those that a customer had complained about.

In a statement, Toyota said: ‘Toyota GB completely refutes the accusation that it or its dealers act unethically or seek to deceive customers by failing to notify them of non-safety or reliability manufacturing defects whilst a vehicle is under warranty. All manufacturing defects, however identified, are covered by the Toyota warranty.’

The Sunday Times investigation claimed there was a ‘secret policy’ – detailed in a confidential manual only given to dealers – instructing them to only fix defects to new cars if customers alerted them to the problem, or if they affected a car’s reliability or safety. Dealers said they were also fined if they fixed something they shouldn’t have.

Around the world

But Toyota says this is not the case. ‘Toyota GB does not have, and never has had, a “secret policy” that prevents dealer staff notifying customers of faults with their car,’ the statement said.

‘The warranty policy manual is distributed to all dealers and authorised repairers (more than 200 in the UK, all independently owned) which details warranty administration procedures. The terms and conditions of the warranty are also described within the owner’s service and warranty handbook supplied with every new car.

‘As acknowledged in the article, all items which may affect the safety or reliability of the vehicle, whether covered by warranty or not, are identified and repaired by our technicians.’

THE National Toyota Council of dealers has issued a statement following the damning report in The Sunday Times.

The paper claimed – on its front page and over two pages inside – that Toyota technicians were penalised if they spotted a fault on a car during servicing and fixed it when the customer hadn’t complained about it first.

‘The National Toyota Council, which represents the interests of the whole independent network, is unanimous in its belief that these allegations are without foundation,’ said the statement.

‘In fact, we consider the Toyota warranty and recall policy to be among the best in the industry, to the extent of being both proactive and supportive in dealing with outof-warranty, goodwill issues with customers.’

In our Car Dealer Power survey for 2011, Toyota dealers voted the firm’s warranty as ‘excellent’. The manufacturer finished 19th in our survey which asks dealers which is the best manufacturer to represent. The maker dropped 16 places on 2010 though – from a top three position to 19th.

The statement from the council added: ‘Toyota has a robust but fair audit process to check that Toyota Centres are following the warranty procedure correctly. The Toyota network acts with integrity and exercises a very strong emphasis on its customer relationships.’

CANADA

FISKER Automotive has announced it is expanding its operation to Canada. The firm has announced it is to open dealerships in Toronto, Calgary and Vancover, and will be working with the big Canadian car dealer Dilawri Group as well as Fields Automotive Group.

Dealer news from somewhere other than here

LAS VEGAS

GENERAL Motors has said that most of its 4,400 dealers have agreed to have their dealerships upgraded with new technology over the next four years. The new dealerships will have new signage, interiors and lounges with free Wi-Fi. Cafes and coffee bars could also be added to certain dealerships. But the news has received a mixed response. The costs could exceed $1m per site.

26 | CarDealerMag.co.uk

VIETNAM ARGENTINA

Total new car sales in Argentina in 2011 were up 30 per cent compared to 2010 to 857,983 units – and 2012 could surpass last year’s figure too. Registration figures for the month of January indicate that 2012 could be a good year for the country, with new car sales rising 8.2 per cent compared to January 2011 at 112,607 units.

JAPAN

NEW car sales have rocketed by 40 per cent in Japan after the government reinstated subsidies for eco-friendly cars. Sales of vehicles with an engine capacity of 660cc and more totalled 263,267 in January – up by 40.7 per cent on the same month in 2011. The subsidy slashes thousands off the list price of eco-friendly vehicles, and has been brought in to boost car sales in the country.

DEALERSHIPS in Hanoi, Vietnam, have opened after the country’s new year – but customers are still few and far between. Analysts have said the automobile market has become frozen after the car ownership registration tax increased to 20 per cent on January 1, 2012, along with a rise in registration fees. However, dealers and manufacturers including BMW, Renault, GM and Mazda are running promotions to encourage buyers.

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Peace of mind for motorists

big mike.

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

The very cool car I managed to find for my driving daughter

W

ell, I guess it had to happen sometime.

First it was the school disco, then the regular boyfriend. But now the absolute worst has happened. Big Mike’s favourite female has passed her driving test, yet it only seems like a year or so since I stopped changing her nappies (something my first wife, conveniently, never seemed to notice were full…).

As a parent, nothing quite prepares you for when your offspring takes to the road. I remember being absolutely paranoid when Chardonnay first got on a pushbike and that was bad enough, so to think of her at the helm of something doing 60mph, or maybe more, leaves a sickness in the bottom of my stomach that I fear will always be there. When she told me she wanted a Caterham for her 18th, I positively soiled myself, until I realised she was joking.

It also got me thinking about the driving test itself. This has recently been revised. It now includes a bit where drivers can go off and drive themselves rather than follow a prescribed route.

I think they call it ‘free driving’, which is something we’ll never get from the current government ! Yet despite all these assurances, the driving test is just that – a test – and like all new drivers, Chardonnay has passed it without venturing onto a motorway. And I’m fairly sure that when all her Facebook mates (or at least the handful of clever ones) bugger off to universities and colleges all over the country, she’s going to find herself on them quite a bit.

If French, German and Italian learner drivers aren’t even allowed a licence until they can prove they can drive on a motorway, how on earth can our own novices be banned from using them until they’re allowed to venture onto them untrained and unaccompanied? Madness.

Our Chaz will be up and down the motorway network like a tart’s knickers just as soon as she has wheels, for when I tried to get her insured on my cherished 3.0-litre Nissan QX daily smoker, I could hear the call centre bod’s coffee coming out of his nose in astonishment that I’d even asked.

So, like all good parents who are twisted around their offspring’s little fingers, I decided to make it my task to find her a set of wheels. For most parents, that’s a challenge enough. It has to be affordable. It also has to be modern and safe, which often makes it unaffordable.

And in my view, it’s a funny set-up where insurers

Big

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

give affordable (as in, not really affordable but at least not mortgageable) quotes on small, buzzy tin boxes that you wouldn’t want to crash. I’m sure I’m not the only parent who’d rather his daughter spent a grand on a V6-engined Nissan QX than a rusty Ford Ka. For me, there was an extra conundrum. Being in the trade, I don’t actively buy cars. I just turn them round in cycles, so whatever she would get as her first car had to come to me either through the trade or part-ex.

Having established that Chazza would be better off owning her own car than being named on my trade policy (it would have increased in premium by 40-fold!)

I crunched some numbers to see what I could come up with. A 0.9-litre Fiat Seicento potentially fitted the bill as it was in insurance group one, despite the fact it has about the same crash protection as driving down the road on a

‘When she told me she wanted a Caterham for her 18th, I positively soiled myself...’ motorised chair. Vauxhall Corsas are dearer to insure than you’d think for youngsters – and that’s because statistically they’re involved in more accidents than equivalent superminis. The price of cool, surely, rather than anything dangerous about them, but show some stats to an insurance actuary and they’ll make life tough for you.

The only other thing vaguely insurable on my lot was a Morris Minor Traveller and I didn’t want to let her loose in one of those on the grounds that a) the brakes are crap, b) it’s half made out of wood and c) they’re usually driven by odd folk in NHS specs and Parkas (much like the creature who traded it in, having finally succumbed to the otherworldly comforts of a Mitsubishi Colt).

As ever, the answer fell into my hands after a chance conversation with my tree surgeon. With his first sprog on the way, he was in the market for a family-friendly 4x4, and I just so happened to have a Toyota Land Cruiser diesel on the forecourt.

His trade-in? A 20-year-old Land Rover 90 Defender pick-up, dented to glory and with a starship mileage, as slow as Britain’s defecit reduction plan, and as a sturdy as the Houses of Parliament. Yet somehow extremely cool as well. Chardonnay loves it.

God knows what she’ll do with the winch.

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 | 29

forecourt. the knowledge Model: Vauxhall Zafira Tourer SE Price: £25,065 (as tested) Engine: 2.0-litre, diesel Power: 128bhp, 300Nm Max speed: 119mph 0-60mph: 10.6s MPG (comb’d): 54.3 Emissions: 137g/km Residual values (three years): 27 per cent

Vauxhall Zafira

To take advantage of the MPV-D segment, Vauxhall has introduced a larger Zafira. James Batchelor reports.

What is it?

the rivals:

For too long, Vauxhall has been absent from the larger MPV market, but the firm now aims to put that right. The sevenseat Tourer will be going up against vanguards such as the Ford S-Max and the Volkswagen Sharan, while sitting alongside the smaller Zafira.

Key Selling Points:

What’s under the bonnet?

target buyers: Large families who require extra space and practicality.

Ford S-Max, Volkswagen Sharan, Chevrolet Orlando.

1. Spacious interior means there’s room for seven.

2. Nicely designed interior is also well built and sturdy.

3. A big car but handles well.

Deal Clincher: Revised Flex7 seating system is better than ever

Two petrols and three diesels. The former comes in 138bhp 1.4-litre turbo and 138bhp 1.8-litre guises, while the 2.0-litre diesel comes in three power outputs – 108bhp, 128bhp and 163bhp. It’s the 128bhp which Vauxhall predicts will be the bestseller. There’ll be a 128bhp ecoFLEX version soon after launch.

What’s it like to drive?

The car has notable levels of frontend grip and minimal body roll, but parking can be tricky due to its size.

We agree with Vauxhall’s prediction – there’s little reason for buyers to opt for the larger diesel as the 128bhp is more than adequate.

What’s the spec like?

There are five models and, as you’d expect, specifications are spread out. The entry 1.8-litre ES has air con, DAB radio, cruise control, and steel wheels for the round figure of £21k, while the range tops with the 2.0-litre 163bhp diesel in Elite form at £28,465. That model has leather, panoramic sunroof, sport seats and 18-inch alloys.

What do the press think of it?

Auto Express said: ‘This new model looks great and has a classy interior.’

What do we think?

The Tourer is yet another Vauxhall that is trying to change the brand with better interior quality, stylish good looks and good handling. Our only quibble is that it’s a little pricey.

Unlock your potential

30 | CarDealerMag.co.uk

themanual

Chevrolet Aveo

the knowledge

We drove an early production version of the Aveo last year; now James Batchelor takes the UK version for a spin.

What is it?

– that’s the Fiesta’s title – but it’s good enough. Well-weighted steering is spoilt by very little turnin, but the ride is pleasant enough, and there’s little body-roll. Only the 1.4-litre petrol and diesel units have anything in the way of go.

This car’s predecessor was a budget B-segment offering that traded largely on value and very little else. Value is just one part of this all-new Aveo though, as butch looks, sharper handling and good equipment levels make up this Ford Fiesta rival.

What’s under the bonnet?

keenly-priced LS at £9,995. Even this model gets air-con and electrically Buyers have a choice of two petrols – a adjustable and heated door mirrors, 1.2 and a 1.4-litre – and a diesel unit while the range-topping LTZ in two power guises. The latter also model boasts 15-inch alloys, fog comes in an ‘Eco’ form that emits just lamps, parking sensors and auto 95g/km of CO2, but it’s the 1.2-litre lights at £13,615. petrol that’s the predicted best-seller.

What’s the spec like?

What’s it like to drive?

There are three trims starting with the Dynamically this is no class-leader

What do the press think?

Autocar felt: ‘It won’t be remembered as one of Chevy’s greatest efforts but it’s a competitive car.’

What do we think of it?

The styling scores top marks with us, with just the wheezy engines and a few cheap plastics spoiling what is generally a car that finally gives Hyundai’s i20 a run for its money.

Model: Chevrolet Aveo LT Price: £10,995 (as tested) Engine: 1.2-litre, petrol Power: 85bhp, 115Nm Max speed: 107mph 0-60mph: 13.4s MPG (comb’d): 60.9 Emissions: 111g/km Residual values (three years): 27 per cent

target buyers:

Conquest younger buyers and brand-loyal customers.

the rivals: Vauxhall Corsa, Hyundai i20, Kia Rio.

Key Selling Points: 1. Bold, aggressive and athletic good looks.

2. Pleasing road manners and a comfortable ride.

3. Good equipment levels and a spacious boot.

Deal Clincher: Chevy now has a sub99g/km city hatchback.

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CarDealerMag.co.uk | 31

TEST DRIVE OUR EXCLUSIVE 3.95% RATE TODAY

FINANCE FERRARI 458 SPIDER EXAMPLE: DEPOSIT: £50,000 48 X £2,099 AVERAGE MONTHLY PAYMENT FINAL BALLOON PAYMENT OF £75,000

DEALER COMMISSION: £8,500

EVEN THOUGH WE LEND AT RATES AS LOW AS 3.95% APR, BRIDFORD STILL PAY INCREDIBLY COMPETITIVE COMMISSION TO THE DEALER. WHY NOT GIVE US A TRY ON YOUR NEXT DEAL? The above rate is specifically for business users/owners , limited companies, or high net worth individuals. Finance is subject to credit status and full underwriting from the finance companies we pass business to.

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COMING SOON.

..produced by TUNED

STYLING

Suspension and steering retuned to suit style of Spider drivers

Ferrari has managed to keep stunning looks of 458 and lose roof.

Ferrari 458 Spider

ENGINE

No major changes here, but buyers can opt for ‘Hele’ pack that adds stop start.

In the first of a new series, finance firm Bridford talks us through the much-anticipated drop-top Ferrari 458

I

t was to be expected. A Spider version of the brilliant Ferrari 458 Italia.

What was not expected was a deviation from the traditional soft top produced by the Maranello firm.

September’s Frankfurt Motor Show saw the unveiling of Ferrari’s first mid-engined convertible with a twopiece folding metal (aluminium) roof inspired by the 575 Superamerica, but radically improved.

To start with, it takes just 14 seconds to open and close under a flip-up cover. And to put the development of the roof into some context, it is 25kg lighter than the F430’s fabric version.

The 458 Spider has been designed so it’s not a traditional drophead.

The two flying buttresses house the rollover protection at their outer B-pillar ends and the vertical rear window doubles as a wind deflector when the roof is stored and it results in more of a scooped rear not dissimilar to a Lotus Elise.

Another new feature is the option of lowering the rear window with the roof in place so the security and privacy of the coupe is coupled with the Spider’s incredible soundtrack that

comes whistling through the cabin.

There are no changes to the 4,499cc 562bhp direct-injection V8 unless you opt for the £800 ‘Hele’ (High Emotion Low Emission) package, which includes stop-start, plus intelligent radiator fans, fuel pumps and air-con compressors to cut CO2 from 307g/km to 275gkm, and boost economy from 21.2mpg to 23.9mpg.

Technically, the men from Maranello say the springs and tyres and super-quick steering are identical and that it purposely retuned the magnetorheological dampers to suit the more traditionally laidback driving style of the likely Spider owner.

It’s naturally stiffer than the Italia too by around 30 per cent but that’s to be expected and it’s a significant improvement from the outgoing F430 which really suffered from being around 45 per cent more rigid.

It means there’s an ever-so-slight drop in the top speed with the coupe’s 202mph trimmed to 198mph but that’s hardly going to be noticeable and there’s no difference in the 0-60mph sprint which takes an impressive 3.3 seconds thanks to its 9,000rpm redline limit.

With some 540Nm of torque, there’s

plenty of pull to provide an incredible driving experience on a day-to-day basis without having to really work the engine too hard.

It should be pointed out that the 458 is a completely new car. It’s not an evolution like the F430, which, in truth, was a revitalised 360. As such, it has set a new level for other supercars to aspire to effortlessly marrying performance, enjoyment, sound and style together.

It all sounds great, so what’s not to like? Perhaps the only slight complaint would be the engineering of the folding aluminium roof. It sits on top of the engine and means the glass cover has bitten the dust so you don’t get to ogle the V8 which is a shame as it loses some of its theatre as a result.

And the roof doesn’t open or close on the move – for safety reasons, says Ferrari. Of course these are mere niggles and it’s without doubt another masterpiece from the Italians.

Price-wise it comes in at £25,675 more than the coupe at £198,856, but Ferrari expects the Spider to comfortably outsell it with a prediction that 60 per cent of UK buyers will prefer the convertible.

We think, it’s clear to see why.

the knowledge Model: Ferrari 458 Spider Price: £198,856 Engine: 4.5-litre, V8 Power: 562bhp, 540Nm Max speed: 198mph 0-60mph: 3.3s MPG (comb’d): 21.2 Emissions: 307g/km Residual values (three years): TBA

target buyers: High net worth individuals, Ferrari enthusiasts and collectors

the rivals: McLaren MP4-12C Spyder, Lamborghini Aventador Spyder.

Key Selling Points: 1. Arguably better looking than the 458 Italia.

2. Spider lets you enjoy soundtrack of that glorious V8.

3. It’ll rapidly become bestseller in the 458 stable.

Bridford verdict: A potential classic made more affordable with finance from 3.95% APR CarDealerMag.co.uk | 33

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Q

I have been contacted several times by a large finance company demanding repayment (clawback) of finance commission paid to me when I proposed customers for finance buying my cars.

I haven’t proposed any customers to them for several years now, however, because they didn’t want to deal with me any more.

They have supplied various sheets showing commissions paid and codes which give a very broad reason why they believe the commission should be repaid. I have replied saying that it seems unreasonable to look for repayment given they have stopped doing business with me and I have asked them for a copy of a signed agreement to confirm I would repay the commissions.

They have not been able to provide one and I know I have never agreed to the repayments. They have argued back that they don’t need to have a signed agreement.

I have contributed to their profits in the past through proposing customers to them and I feel I have earned any commissions received.

They have earned interest on the finance deals.

They are trying to claim back the commission because they have had problems with customers.

In my view this is part of the risk when they assessed the customer for finance. Should I pay back the commission?

RR, Sunderland We agree with you that the finance companies want to have their cake and eat it. As you say, the motor dealer has been a critical part of their business profit by introducing customers to them. They

A

ADVICE

Why should I pay?

Q. We operate a small retail showroom forecourt and workshop. Recently we received a demand from organisations such as PPL and PRS claiming that I need to have a licence for the music I play off the radio in the showroom, in my workshop and even for the music on hold with my telephone system. I can’t understand why I should pay because the radio stations must pay their fees and the telephone music must be covered too. Are there alternatives?

BV, South Wales A. We receive a burst of enquiries periodically when these organisations, the Performing Rights Society (PRS) and Phonographic Performance Ltd (PPL) have a purge on motor traders using music in the workplace/customer areas. The reason you are asked to make the payment is because as a business you are using other

people’s ‘intellectual property’ and they want paying for that use. The PRS collects its licence fees for the writers, composers and publishers (the owners) of the music.

PPL collects licence fees for record companies and performers. There are alternative solutions!

Use a search engine to look for Si Bee Records, IMS Radio, Creative Commons and Royalty Free. You won’t get what you might consider are the latest releases on the radio but the music can still be pleasurable.

have earned money from the interest they have charged. They have financially assessed the customer when the deal has been proposed.

From that point on, you are out of the loop and if a customer defaults in any way then the finance company needs to use the due legal process to get repaid by the customer. To penalise you hardly seems fair.

But, more to the point, they are trying to argue that there is a contract in place between you

and them, which contains terms and conditions which allow them to claw back commission when the customer hits repayment problems.

We have seen very poor paper trails and very ambiguous wording in documents which finance companies have used to argue such a contract is made.

The simple answer is, if you don’t feel you have ever agreed to clawback terms then you are entitled to defend that position.

A. The general rules of contract would say that when someone puts a deposit on a car they are committed to the purchase of the vehicle.

The problem in your case is that the sale appears to be a ‘distance contract’. If your business regularly sells ‘at a distance’ ie the contract is made before the customer has seen the car, then the Consumer Protection (Distance Selling) Regulations will apply. Those regulations require you to make it clear to the customer what they are buying, how the transaction will proceed and how they can cancel if they are not happy.

Unless you have complied with the specific requirements of the regulations then the customer will be entitled to change his mind and get the purchase price back.

A better way to deal with these situations is to make it clear, when someone rings, that you are not tying them into a contract at that point.

Get them to come down and see the car and make it clear that if anyone else decides to buy it in the meantime then you will sell it. In this way the contract is only concluded when you are with the customer, and the regulations do not apply.

Dilemma over a ‘distance contract’

Q. I specialise in particular marques and models.

I am down south and a customer from Durham saw my advert and was interested in a particular car. He asked me lots of questions about the vehicle and decided to buy it over the phone.

He paid a deposit over the phone by credit card and we arranged for him to pick up the car. He arrived, paid the balance and went back home.

He rang me a few days later and said he felt he had made a mistake. He asked if we could reverse the deal. Am I obliged to do so?

SA, Dorset

Let Lawgistics help you Lawgistics are extremely experienced when it comes to helping car dealers with legal matters. The firm has a reputation for assisting the motor trade with customer complaints, health and safety issues, trade-to-trade problems and much more.

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forecourt.

priceFREEZE

When times are tough there’s solid evidence that buyers still want to have fun. Here, we put five roadsters that won’t break the bank to the test to prove drop-top thrills don’t have to cost the earth Words: James batchelor

Porsche Boxster

Mazda MX-5

36 | CarDealerMag.co.uk

manualSPECIAL

A

usterity motoring is, broadly speaking, grey motoring. It’s the cars that are ubiquitous; that fill Sainsbury’s car parks; the cars that come in colours such as ‘graphite’, ‘charcoal’, and ‘sandstone’ beige. It’s the cars that are designed for purpose rather than pleasure, that ditch individualism for conformity.

But austerity motoring needn’t be like this.

These days, customers needn’t spend £80k on an Audi R8 Spyder as there’s a whole range of cheaper sports cars sitting in your showrooms that can offer just as much fun for a fraction of the price.

But, apart from the price, there’s something else that’s adorable about a cheaper sports car. They offer that glimmer of hope that life can be just a little bit better with the top down and power being delivered to the rear wheels. With ever-tightening budgets, there’s still a large number of buyers out there who want fun on a smaller budget. They’re the sort of people who don’t want to be ‘seen’ to be driving a sports car, but ‘want’ to drive a sports car – if you get our drift.

That’s why we’ve brought together five sub£40,000, two-seater, rear-wheel drive roadsters.

It’s to prove that customers needn’t be swayed by the grey austerity motoring that comes with hatchbacks, but can instead still be tempted by something a little more enjoyable.

From Britain we’ve got the stripped-back Lotus Elise Club Racer; from Japan there’s the iconic Mazda MX-5 and Nissan’s 370Z; and from Germany, there’s the new SLK – in 1.8-litre BlueEFFICIENCY trim – and the perennial Porsche Boxster in 2.9-litre guise. In typical Car Dealer style, we took them to Wales in the snowiest week of the year. Well, at least it made the pics interesting…

Nissan 370Z Mercedes SLK200

Lotus Elise CR

Car Dealer Club members get free legal advice worth £195. Sign up at CarDealerClub.com| 37

forecourt.

S

napper Don is cautiously beckoning me into position. We’re in a car park used

by Car Dealer for the 2009 Road Test of the Year because it looks out over a vista that could only be Welsh. However, today, it’s snowing, it’s minus four and our photographer has the devil’s own job of organising five cold and miserable road-testers into an arrangement that will become our front cover.

I’m driving the Lotus and the snow and ice are proving to be too much for the Elise’s soft summer tyres. After a bit of sliding, the Club Racer is finally in position and forms one piece of our cover shot.

Next, nosing into the camera’s viewfinder, is Jade in the Mazda MX-5. With the roof up and the heated leather seats turned up to five, she’s nice and toasty and it requires only a little thumb waggling from Don to get her into the shot.

Splitting the Elise and the MX-5 is the bruiser of the shoot. The 370Z, with lights ablaze, is being a little bit stubborn to inch backwards and forwards to shuffle into the right pose.

While Baggott is trying to get out of the Nissan amid a force-10 snow storm that would make the Alps look mild, the two Germans are, naturally, gracefully gliding into shot. Duncan jumps out and makes for the shelter of what’s normally a picnic area, while Natasha is sliding back down the hill courtesy of some inappropriate plimsolls. How different things were just 24 hours earlier...

Like serious journalists we had made a recce the day before. While it had certainly snowed, the roads were clear apart from some rather cold sheep and ponies, and our five roadsters were getting more than their fair share of looks from passing motorists. Parked up, we took it upon ourselves to try out each other’s machinery.

Jumping out of the Mazda and into the Merc proves that while they may share the same front engine and rear-wheel-drive layout, and a folding hard-top roof, two sports cars can still be very different indeed.

It’s not that the Mercedes was bad – far from it. Natasha, who for the entire time we were in Wales drove around with Jessie J at full blast on the optional £645 Harmon Kardon sound system – was heard to say, at one point, she wanted to ‘lick the car all over’ she loved it so much, while Baggott remarked he thought the SL-style make-over had been ‘very successful’.

Along with the 370Z, the SLK scored highly in the specification stakes. Our test car’s price tag was an eyebrow-raising £38,315 but, for that, there was every conceivable luxury save an in-built Jeeves in the dashboard.

Sadly, to come in under our £40k ceiling, we had to opt for the SLK 200 BlueEFFICIENCY model that sports a four-cylinder 1.8-litre petrol unit, and churns out a more-than-reasonable 181bhp – but in this company, the SLK’s performance can best be described as Michael Winner doddery with a 0-60mph time of 7.1 seconds. Due to a portly gross weight of 1,750kg, an engine designed with eco driving in mind and steering that seemed to have a close relationship with a rubber duck. The SLK was not the sporting driver’s choice.

38 | CarDealerMag.co.uk

SECOND OPINION Mazda MX-5 I know it’s boring to read and this model is getting a bit long in the tooth now, but the MX-5 is still staggeringly brilliant. Great fun to drive with a peppy little engine, what it lacks in aesthetics, it more than makes up for with charm. It’s a bit soft – something to do with the added weight of the hard top – but on a twisty B road is plenty of fun. Add the fact it’s the cheapest here and it’s hard to argue against it. BAGGOTT

‘‘

Meanwhile our attentions turned to Nissan’s 370Z finished in a capitivating ‘black rose’ paint scheme. Sporting the biggest lump here, a 3.7-litre V6 quad cam petrol unit which produces 325bhp, the 370Z could get to 60mph the fastest in 5.6 seconds, and was very much the ‘man’s choice’. Mated to a sevenspeed auto box with steering wheel mounted paddles, the car had a lot to shout about.

Inside it was impressive too.

Looking past the cheap-looking dashboard plastics and parts from Nissan’s humdrum models, the 370Z more than matched the Stuttgart SLK for spoiling the customer. Electric heated and cooling seats, an excellent sat-nav set up, Bluetooth and climate control all made Baggott’s cruise to Wales an enjoyable one.

Faced with Welsh roads, the 370Z still performed ably too.

‘It’s so good I’m seriously contemplating buying one,’ said the ed. But opinions were mixed, with Duncan admiring the car’s qualities but feeling the car lacked that last bit of polish.

In fact, the 370Z nearly won this feature thanks to its power and equipment levels.

But some stern criticism was dished out by the rest of the team, snatching victory away from the £38,350 Nissan.

Natasha complained it looked ‘nowhere near pretty enough’, while I moaned a sports car is not about power, and certainly not about a luxurious interior. It was also the one that emitted the most CO2 – a shocking 254g/km – and returns, if buyers are lucky, 25.9mpg.

The 370Z more than matched the Stuttgart SLK for spoiling the customer.

manualSPECIAL SECOND OPINION Mercedes SLK I love the looks of this SLK – from the front and back it looks like a miniaturised SL, and that’s no bad thing. The build quality of our test car was superb, and the kit level impressive (but buyers will pay for that).

However, with the wheezy lump fitted to our test car it could hardly be called sporting and the steering was lacking in feedback. Too much style over substance in my book. BAGGOTT

SECOND OPINION Nissan 370Z This was my choice for the test and the car I spent the most time in. I know it’s not everyone’s cup of tea – and I think the 350Z looks better – but I seriously enjoyed driving this car. The engine doesn’t sound amazing, but is packed with torque, it’s great fun to drive and is brimming with excellent kit. I even grew to love the sevenspeed auto gearbox. Just don’t drive one in the snow. Ever. BAGGOTT

CarDealerMag.co.uk | 39

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T

he Lotus had the smallest engine in our group test, but that didn’t stop Jade from not wanting to hand the keys over to anyone else. Despite being locked out of Norfolk’s finest even before we had left for Wales – thanks to a door lock that seemed to operate as if it was from 1968 – Jade was totally in love with the car. ‘I just love the noise, the gearbox – everything really,’ she said, every 15 minutes, to anyone who’d listen.

It was hard to argue with her enthusiasm, though. After wrestling the keys off her, I happened to come to the same conclusion – it’s extraordinary.

Once you’ve clambered over the ridiculously wide door sills and slipped into the body-coloured plastic seats, the dashboard’s nakedness is striking.

Apart from a handful of air vents and an instrument binnacle, it really is an alcantara covered steering wheel and an aluminum gearknob that you’re left with. There’s a bizarre start-up sequence to contend with first – turn the key while pressing the immobiliser then, with your other hand, reach for the starter button that’s near the door. Then it’s all about that gloriously enthusiastic 1.8-litre Toyota-derived four-pot. It only churns out 134bhp, and 149g/km (the lowest here), but as it weighs just 876kg the Elise can still crack 60mph in 6.4 seconds.

40 | CarDealerMag.co.uk

SECOND OPINION Lotus Elise CR Stripped back to the bare bones, we were lucky this Elise even came with a steering wheel. It’s fun to drive, but the lack of kit makes driving it on long journeys a chore – it hasn’t even got a stereo! It also had an annoying habit of locking its keys inside with the engine running. We called the AA the first time it happened, the second time we knew how to break into it ourselves. And that was far too easy… BAGGOTT Our particular car was no normal Elise, either – it was the Club Racer. The firm’s engineers have managed to shave a further 24kg off the car by ditching items like the radio. A sports button has also been fitted as well as an adjustable anti-roll bar to give an even more responsive experience for track-day goers.

The car’s party piece is the way it corners, for it does so in a deliciously retro fashion. Turn in, squirt the throttle and the wheel thrashes in your hands sending a thousand messages to your brain. It seems like no small mechanical part buried within the car cannot be felt when you’re at the wheel of the Club Racer – the whole driving experience is immediate, intense. Add a popping exhaust,

deafening sound levels, a fabric roof and a baby blue paint scheme, and you’re transported back to a bygone age of sports cars when driver comfort was simply aspirational.

‘It reminds me a lot of the Caterham we had for last year’s RTOTY,’ said Duncan, as he ballet-danced out of the car after a quick spin. ‘It has all the elements we loved of the R400, but the Elise is just slightly more practical and civilised.’

But, even with its stripped-out interior ambience and more practical persuasions, the Elise Club Racer is not a cheap car. While, admittedly, it is the second cheapest car here at £27,500, you can’t help but feel slightly ripped-off. Couple that with poor visibility and a chronic ride on anything but smooth Tarmac, and the Elise is just a little too compromised to be the definitive austerity motoring sports car.

Contrasts don’t come much greater than that of the Elise and Porsche Boxster. You can’t really have a sports car test without having something with the gold and black shield on its nose, so despite a new one just around the corner we had to include the baby of the Porsche range.

Anyone knows that a car wearing that badge means handling, balance and poise are going to be high on the agenda. On the snowy Welsh hilltop, the Boxster was a much sought-after car with

manualSPECIAL

Baggott, Duncan and Jade all fighting over it.

To come in on budget, we plumped for the 2.9litre version. But it still had a not-unreasonable 255bhp, could crack 60mph in 6.5 seconds, and top 163mph – the highest top speed here.

Picking a winner from our roadster collection was harder than we thought it would be – and the winner even surprised us

But it was the way the Boxster coped with those undulating and daunting roads that really impressed. The car’s standard six-speed gearbox is one of the best, with quick shuffles between gears child’s play. Terrifically direct steering is both well-weighted and provides impressive levels of feedback, meaning the Porsche could be pushed as hard as the driver felt comfortable with.

Our test car had an eye-watering £8,396-worth of options. Those five-spoke wheels? £732. Painted black? A further £1,012. Black interior will relieve buyers’ wallets of £745.

Want yellow seat belts? Those will cost £165.

A worthy investment though is the £1,465 sports exhaust system. A switch on the dashboard turns what is a loudly painted car with little to shout about into Pavarotti. In most cases it was the Porsche that was the loudest car on test; its flat six howling in the upper rev range in a way that the other cars could only dream of.

Along with Mercedes, the Porsche press office had fitted our test car with winter tyres resulting in a car that often out-handled the others on test.

‘It can’t win, though, because it’s just too old – and about to be replaced,’ said Baggott, while throwing a snowball at me.

‘I’m not saying our winner has to be brand new, but a car that’s newer than 15 years old would be

SECOND OPINION Porsche Boxster Derided by many as a poor man’s Porsche, I wasn’t expecting much from the baby of the German firm’s range. However just how good it really was shocked me. The engine feels far bigger than 2.9 litres, in fact it makes our 911 for 2011 Porsche (p46) look slow. It handles superbly, especially with winter tyres, still looks good despite its age, and is very comfortable. Spec and price let it down though. BAGGOTT nice.’ While that statement’s technical accuracy instigated heated discussions, no matter how decent a sports car it makes, the fact the Boxster is about to be replaced with an all-new model is an important point to consider.

‘There’s no denying it is cracking to drive. It’s probably the most poised car here, and is one of the most rewarding,’ added the ed.

‘But what really annoys me is that virtually everything on it is an option – and that shouldn’t be the case.

‘Why hasn’t it got electric seats? And if I’ve just spent £36k on a car, I would like a set of mats. And those yellow seat belts? What were they thinking?’

Case closed, for him at least...

CarDealerMag.co.uk | 41

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Y

ou don’t have to be a nuclear scientist with a brain the size of Cleethorpes to work out the one that’s our winner then.

It’s the Mazda MX-5 because it’s simply rollicking good fun at a knockdown price.

The Mazda had been my car for the majority of our time spent in Wales, and I quickly came to realise what a fantastic model it is.

Our test car was the top-of-the-range Sport Tech version costing £22,990 and boasted a large proportion of the 370Z’s equipment, with Bluetooth, a Bose stereo, heated leather seats and climate control – but we weren’t too interested in that.

It’s the way this thing drives that’s the reason why it wins. Slip into the driver’s seat and you’re confronted with an old-school style, large diameter, thin-rimmed steering wheel that just begs to be gripped and fondled.

Your legs stretch out to touch the pedals and, in so doing, you’re in a driving position that rivals the Lotus for perfection.

To the left there’s a stubby little gear-leaver that can dance between gear ratios with just two fingers, and that’s pretty much it.

When the car was delivered to Car Dealer HQ, I at first lamented it being the Roadster Coupe version. In other words: Sacrilege. Before now I always believed an MX-5 should be a fabric-roofed 42 | CarDealerMag.co.uk

Clockwise: 370Z rims look cool; Elise’s were shod in summer rubber (eek); Merc’s were a bit dull; Boxster’s pricey; and MX-5’s a classic convertible. But faced with Arctic conditions, the fact it only takes 12 seconds to lower, and it being prettier than its convertible sibling, the Roadster Coupe soon won me over.

That roof is at the cost of handling though.

Mazda’s engineers played around with the suspension set-up, making it softer to cope with the extra 30kg gained from the folding tin-top. But that hardly matters.

While it’s true the MX-5 does lean too much towards wallowy rather than pin-point poise, it all adds to the fun.

Bury the throttle and the car leans slightly as a prelude to a bit of rear-end looseness. Throw in 160bhp and a roarty exhaust note and you have a classic sports car.

Our team did fight for the Mazda’s keys once Baggott had come back raving about it. He’d criticised it for days for its clichéd status in the motoring book of greatness, but even he conceived – all six foot four of him – that ‘it’s tremendous fun’. Even the Elise’s new lover Jade liked the sporty Mazda.

And that’s exactly what the Mazda is. It’s often said the MX-5 is the modern-day British sports car – taking off where the Lotus Elan and MG Midget left off.

It trades on good fun without wanting to pose and, best of all, shows that fun needn’t cost the Earth. With the winner decided, thoughts turned to how get off a mountain, in five rear-wheeldrive sports cars, in the snow ... without calling Prince William and his helicopter back from the Falklands. Frankly, we just about made it ... [CD]

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Feature.

laboratory

Welcome to my

From a modest start selling alloy wheels, Afzal Kahn has become known around the world for his stunning personalised cars. JAMES BATCHELOR reports.

S

et back from one of Bradford’s busiest thoroughfares, Kahn Design sits among a seemingly endless assortment of car dealerships.

But to mistake the building for a car dealership would not be doing justice to the work that takes place inside. Indeed, the outside does not reflect its automotive persuasions either; clad in smoky blue panels with deep black tinted windows, Kahn Design has an attitude which makes the Volvo dealership opposite look just a little ordinary.

‘It’s a laboratory,’ says the owner, Bradford-born Afzal Kahn, in complete seriousness. ‘We are a laboratory that focuses on innovation and design – and that is what this business is all about.’

Sitting in the dark grey office that he shares with his employees, Kahn is the mastermind of this slick operation. The business is a design house for wheels, interiors and cars – in fact, it is more than that: it is a tailor’s shop where the most personalised cars can be clothed.

The business’s roots date back more than 20 years with Kahn owning his own alloy wheel business selling fashionable aftermarket wheels.

His design breakthrough came with the wheel named RS-R in 1996 – now perceived to be a design classic.

‘I was 17 years old and had a successful business selling other people’s alloy wheels,’ he says. ‘I became good at what I did and I knew what design of alloy wheels would work. I went back to basics and designed a very simple fivespoke alloy wheel and soft-lined it. At that time there was no such thing as soft-lining, so I created one and designed it in a way that made it look bigger than it actually is.

‘I saved up and bought the tooling in a factory in Italy and had them make 1,000 wheels.

‘I took out two small adverts in Auto Trader and Top Car and had the wheels sold before I even landed back in the UK.’ Since then, Kahn has developed a famous range of alloy wheels that can adorn a Rolls-Royce or a Renault, not mentioning his flair for stylising cars.

He can count celebrities such as Simon Cowell, Katie Price and Amir Kahn as his customers.

‘I begrudgingly went into styling cars,’ he says, straight-faced. ‘Clients and customers urged me into stylising and personalising cars for them and I have never really looked back.’

44 | CarDealerMag.co.uk

THE NEXT STEP

Great opportunity Kahn certainly hasn’t. To his left sits a showroom of supercar exotica that ranges from a gold Aston Martin Cygnet to a pair of Bugatti Veyrons – one of which is awaiting collection by its new French owner who paid £790,000.

‘We don’t touch the Veyrons,’ says Kahn. ‘Well you can’t can you? You can’t better perfection.’

One brand Kahn most certainly does try to improve for his customers is Range Rover. It’s arguably his bread-and-butter product and is one that has attracted many a rich customer for its range of personalisation options.

It’s not just Range Rovers and Sports that get the Kahn treatment, though; the Evoque does too.

It’s another addition to his product portfolio

THE next step in the Kahn dream is to roll out the Kahn brand through dealers with the Jeep Wrangler. ‘This is the perfect opportunity for dealers,’ says Kahn. ‘We are going to licence the brand. We are looking for 25 dealers throughout the UK to take on our brand – Chelsea Truck Company.

‘The first 15 dealers will come on board for free, and each one will hold two Wranglers – a two-door and a four-door – and they will be a centre of excellence. Under the umbrella of Chelsea Truck Company will be the Land Rover Defender which will be coming along shortly. The dealers will get the cars at a certain price and if the dealers upsell they will get a percentage of that.

‘Interested dealers need not build their own dealership for the franchise either. We ask for a space in their current dealership and we will provide Kahn branding.’

TRANSFORMATION

Making it big THE Wrangler is the car that could see Kahn go from a design house into a notable car manufacturer with franchised dealers across the UK. It’s a product fully endorsed by Chrysler Jeep and comes direct from the American maker to Kahn. Using workshops who are fully trained by Kahn, the Wrangler is transformed from a retro 4x4 into an offroader with attitude. Kahn can build up to 200 of them a year and owners can choose from a 2.8-litre diesel or a 3.8-litre petrol, and two models: Sport and Sahara.

We got behind the wheel of the latter with the diesel unit which was finished in dark grey with black Kahn RS wheels. The car we tried also had the special order luxury interior package that comprised of quilted and perforated leather in red. Dials in the instrument binnacle were embellised with the words ‘Chelsea Truck Company’.

Buyers are still treated to the Wrangler’s unique characteristics – upright driving position, high entry, and scratchy but sturdy dashboard plastics – but the Kahn version has a dose of much-needed aggression.

Our test car retailed at £28,875.

Afzal Kahn’s designs are very popular

and one that has already seen customers clamouring to buy one. ‘The showroom’s example has been treated to Bugatti red paintwork, a brand new leather interior, and wheels worth £5,000,’ says Kahn.

‘The thing I am most proud of is the brand, as these days it is the hardest thing to create one and get it global. I could have shut up shop years ago but I am proud of what I do.’

Just looking at his desk reveals that passion – it is adorned with various design ideas including a miniature bidet – naturally designed by Kahn himself. Kahn is also playing with a gold metal badge. ‘That’s our next adventure – we’ve got an association with Harris Tweed and will be

introducing it to our Range Rovers. I am trying to get people to understand that we are not a customise shop like you see in the USA. We are more of a fashion business.’

But these are not just ideas; Kahn is putting them into practice. ‘We are starting with Harris

Tweed because it is the core of this country and we are bringing it all the way to being modern.

‘I will be talking to a lot of fashion houses and will introduce a range of nice products and cars under that brand.’

Kahn is as bold in talking about the future as he is when he’s speaking about the present. This year’s major focus is his brand new product – the Jeep Wrangler (see panel).

Through his subsidiary The Chelsea Truck Company, it’s the next step in Kahn’s business and one that could see his firm become a manufacturer with a dealer network.

‘I could also see Kahn dealerships in the future and this is something we are discussing,’ says Kahn. ‘We are currently looking for a flagship dealership to show off what we can do for our customers.

‘We’ve demonstrated in this market and in this recession that people who want something different come to us. We’re not like some of our competitors who are a car sales business and sell cars with bodykits on them. We are a true manufacturer.’

To emerge from humble beginnings to become a world famous manufacturer is a true tale of success.

It is, however, a little more than that – Kahn Design is a British success story and shows that when it comes to innovation, it’s to Britain that the world comes.

And with the possibility of even greater plans to come to fruition, the future looks even more exciting for this British innovator. [CD]

Car Dealer Club members get free legal advice worth £195. Sign up at CarDealerClub.com| 45

Feature.

For sale

Our charity Porsche has been back to the manufacturer for the once over, had the clean of its life and is now at a dealer ready to be sold. JAMES BAGGOTT reports.

O

K, I know how this looks. It looks like I’ve been enjoying a Porsche 911 for three months. And you’d be right – I have. But during that time our 911 for 2011 motor has been having some work carried out in an attempt to make it even more saleable.

For those of you that need one, here’s a quick recap: For 15 months we traded up from £0 to a Porsche 911 in aid of automotive industry charity BEN. It took 12 cars and some interesting moves along the way, but in October we managed to secure the Porsche – a very early 996 R-Reg model – from a dealer in Birmingham.

Service history was a little patchy and there were a few issues that needed sorting before we put R97 RRK up for sale, so a pleading phone call was made to Porsche GB. Our friends in the press office took a little while to give our request to take a look at the old girl the nod, but to be fair they eventually did.

However, before agreeing to do any work they wanted to get the 911 into their workshops at their Reading HQ for a once over. Porsche offers a 111-point check for £216 which, when passed, can mean the 911 is eligible for its extended warranty scheme. The thorough inspection takes two hours and our car was eventually described by engineer Darren Pannell as ‘a good ’un’. There were a few issues that needed addressing though, a couple of which were given immediate attention.

The engine was topped up with Mobil 1 and it was noted the brake fluid was a little old.

The windscreen scratching was highlighted, a 75-amp instead of 80-amp battery noted and the Goodyear tyres weren’t N-rated (Porsche’s preferred tyres).

However, the biggest problem was spotted when the car was put on the ramp. A peek under the engine revealed a small oil leak from what looked to be a breather pipe. And finally the reversing lights weren’t working.

After a test drive Pannell said: ‘It’s in very good condition for the age and mileage. It’s stood the test of time well. It doesn’t creak where others can do and the interior is in pretty good nick.

‘There is a slight knocking from the front which I think is a joint on the suspension. We can investigate that when you’re back. Overall I think you’ve done well – maybe you should give up the 46 | CarDealerMag.co.uk

Porsche GB kindly paid for work on our car

day job and buy cars!’

Pannell then drew up a list of suggested remedial work, which was submitted to Porsche’s press office for approval.

Three weeks later we got the nod to take her back and they even lent us a spanking Panamera 4S while the work was carried out. Nice.

As Porsche were doing us – and BEN – a huge favour, we weren’t really worried how long it took (especially as we had the Panzer to enjoy). So, three weeks after I dropped R97 RRK off we went to pick her up. Shining and with £2,500 worth of work to her name, our 911 was running like a dream. And with a Porsche GB stamp in the service book we’d hopefully added a few pounds to the price tag.

The big problem with 911s of this age is that most buyers are worried about their provenance.

Service histories get patchy as owners scrimp on bills – these things are expensive to look after – and with those missing stamps, worries in buyers’ minds creep in. Hopefully with this work carried out by the experts we won’t have to worry about that.

So what did Porsche do for us? Well, the major cost came from replacing the rear main shaft seal.

We’d been told this had been done by the dealer we bought it from, but the engineers could find no evidence of that and changed it anyway. This requires the engine and gearbox to come out, which pushes the cost up.

The non-standard battery was replaced with a new one, the knocking from the off-side front suspension fixed, and the fans sorted (they were

only blowing on the second setting). The remedial work was topped off with a service, including new oil, brake fluid and the replacement of the rear exhaust pipe clamps.

CLEAN TEAM With the car now in tip-top condition mechanically, thanks to Porsche GB, we headed to Autoglym for a full makeover. The clean team professionals at the firm’s Letchworth HQ never offer their cleaning services out to the public, but as a special showcase for BEN they threw open their doors for us.

There we met Barney Dobbs who teaches members of the trade all about Autoglym’s impressive range of cleaning products. After inspecting our car and noting the swirls deep in the paintwork you could see he was actually excited about getting started – it was clear Dobbs loved his job and saw our 911 as a challenge.

We only got to spend a couple of hours watching Dobbs work, but after a simple clean and hose down, it was already looking stunning.

Before

We returned the next day and after nine hours’ careful attention the difference was simply staggering.

The paint looked like new. A clay bar had been used to remove all impurities and the surface polished and buffed back to showroom condition.

Inside it was just as incredible. Car Dealer Dog’s hairs had been removed, the leather smelt fresh again and the dash was shining.

AFTER

The transformation Autoglym managed to achieve really was incredible and we’re convinced their hard work has added a few hundred pounds at least to the price tag.

Once the clean had been completed we delivered the car to 911Virgin.com. Specialist Porsche dealer Henry Firmin, based near Uxbridge, has been following our progress closely in the magazine and when he spotted we’d finally

completed our mission, he offered to help us sell the car.

Firmin sells around 300 Porsches a year and was confident he could get a decent return for ours.

We bought it for £9,900 but were hoping the work we’ve put into it will make it even more valuable – the target is £11,000, which we’ll hand to BEN. ‘I’m sure we’ll do better than that,’ said Firmin, when we dropped the car off. ‘They’ve done a great job cleaning it and the work by Porsche GB will certainly help. All we need now is to get a warranty put on it and it’ll fly out the showroom.

You leave the selling to me and get on with your scribbling.’

We like his confidence. At the time of going to press the car was about to be advertised on the 911Virgin.com site. Now we’ve got everything crossed it’ll sell quickly – and for a decent amount. Wish us luck. [CD] With thanks to...

Porsche GB, porsche.co.uk Autoglym, autoglym.co.uk 911 Virgin, 911virgin.com

Car Dealer Club members get free legal advice worth £195. Sign up at CarDealerClub.com| 47

focus on.

SPOTLIGHT ON...

WMS

You’ll be Safe & Sound with us W: WMSGroupUK.com T: 0800 021 3030

E

xciting times is the most appropriate phrase to describe the current climate at WMS Group. The Buckinghamshirebased firm has had an extremely successful 2011, and with new products coming over the course of the next 12 months, dealers using WMS products are in the hottest seat in the house.

‘This is particularly exciting time for us,’ the firm’s marketing manager Steph Colinswood told us. ‘As we continue to grow, we are looking to increase our brand and product awareness across the used vehicle industry, while helping to remove the ageold stigma that warranties aren’t worth the paper they are written on – and dealers and customers are recognising that.

‘Our multi-faceted marketing and products are appealing to both independents and franchises, and as the networks grow, we are currently recruiting account managers nationwide to support the development. We also have a dealer care department which adds another dimension to our business.’

One reason for WMS’ growth in 2011 was the successful introduction of their Safe and Sound warranty. It was branded as ‘the ultimate used car warranty’ and has proved to be a hit with dealers.

‘Safe and Sound is developing very well,’ added Eric Stone, WMS’ business development director.

‘We’ve got about 60 dealers on the scheme now, and I originally said I would be very happy if we had 30 by the end of 2011. We’re currently talking to around 60 more, and dealers are coming on board more frequently now. What we are finding is more franchised dealers are wanting to use Safe and Sound – that’s something we didn’t think would happen.’

It’s little surprise so many dealers are taking advantage of Safe and Sound. That’s because it covers every conceivable area of used cars, and is made up of seven elements that include a safety inspection, wear and tear cover, an HPI check, mileage check, rescue and recovery package, and an independent price verification from the Used Car Expert.

48 | CarDealerMag.co.uk

‘In fact, we are currently talking to a major dealer group who is looking to move away from the manufacturer-approved programme because it is too expensive,’ said Stone, pictured above.

‘Safe and Sound is as good, if not better than, the approved programme as it is all singing and dancing.

The dealers are telling us that customers are buying Safe and Sound and it is helping us create extra income and profit. It’s also generating sales, retaining customers and attracting customers because, naturally, customers are drawn to a warranty that offers the most and that adds value.’

By the end of this year, it is Stone’s prediction to have a network of 150 dealers, and by the end of 2013 a network of up to 250 or 300.

‘But Safe and Sound and its development will be just one of our main focuses this year,’ adds Stone.

‘The other concentration is our new monthly-rolling GAP product, also called Safe and Sound. It is designed to offer great protection for the customer, something that is affordable during these austere times, and something that will comply with the voluntary code of practice that exists from the ABI and FSA regarding giving customers back a proportion of unused risk.

‘They pay £15 per month on a rolling basis and when they stop – cover ends, therefore customers

Amari Supercars in Preston – a Safe & Sound dealer only pay for what they use. We have built-in commission that will not invoke a claw-back.

We’ve given it the Safe and Sound name because we feel the branding is very strong.’

Stone says there has been a lot of excitement from early meetings the firm has had with dealers.

He said: ‘Dealers can see regular monthly income building, and they can see today what they are going to earn next month, and the month after that because we are building in the commission that we are going to pay for the first seven months.’

So why the simple approach? ‘We decided to do this instead of offering a whole new menu of different types of product because we have looked at the market and 99 per cent of the cars sold and 99 per cent of our dealer network will use this product,’ says Stone. ‘It won’t necessarily cover a Ferrari – although it can – it is designed with the

SUPPLIER PROFILE

‘‘

Dealers can see regular monthly income building, and they can see today what they are going to earn next month, and the month after that because we are building in the commission.

mainstream buyer in mind who is purchasing anything up to £25k.

‘It’s very fair to the dealer as there is no clawback of commission, and it’s affordable and fair for the customer as they can stop and then start with another vehicle.’

However, WMS Group is not content with launching just one product this year. The firm has progression in the forefront of its mind as it has just partnered with the parts firm Unipart to offer something extra special to their Safe and Sound warranty customers.

‘We have got a tie-up with Unipart where we are able to offer a service to customers who can’t get back to their own dealership.

‘A customer will be able to get repairs carried out at a Unipart centre without invalidating the warranty. Unipart have approximately 1,000 outlets in the UK and they boast that customers are never

far away from a centre, so this is a great news for our dealers.’

There’s another benefit too – the partnership does not affect the dealership’s ability to retain the customer, and takes advantage of future business from the customer.

Stone adds: ‘One thing that the dealer wants with a warranty is that it gives customers peace of mind.

‘We appreciate dealers want to get the customer back for a service under the warranty – the Unipart centre is not there to take money and profits from our dealer. It is to add another layer of service.’

The partnership will be of great benefit to dealers who do not have their own service set-ups too.

‘It is a big coup for us and one which we are very proud to offer to our dealers,’ added Stone. [CD] For more information email Sales@WMSGroupUK.com CarDealerMag.co.uk | 49

‘‘

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focus on.

Suppliers guide MARTEC

Training for success W: Martec.co.uk T: 0844 854 9670

D

‘‘

Martec helped Toyota Dealer of the Year Yeomans. Martin Mortimer (centre) accepts the award from chairman Naoya Taniguchi and MD Jon Williams

We can talk to customers and then build a training programme for dealers up around that.

‘‘

ealers are being faced with customers who are more discerning than ever.

That’s the view of Martec Europe’s managing director Neil Pursell.

‘The economy does not create more tough customers, but it does bring out customers who are more discerning about how they spend their money,’ he says.

‘These days there is a lot of choice available to customers, and the discerning ones will take more trouble to ensure they are getting the best value.

But, no matter how hard or easy a customer is, they are all looking for a good experience and one that has value. The quality of service is more important than ever.’

However, matching up good customer service with dealers managing their workload can be tough.

‘Generally sales and service managers have pretty stretched job roles,’ says Pursell. ‘And when times are tough, they perhaps have even more on their plate which means they don’t have the time to coach the people themselves.’

This is how Martec can help out dealers. They are a car sales training and coaching firm who can assist dealers with a variety of courses and resources, and are specialists in this arena – they have, after all, been doing it for 21 years.

‘In fact, 2011 was the best year yet in Martec’s history,’ says Pursell. ‘That’s mainly because our client base is really keen to make sure their skills are as sharp as they can be as the market becomes tougher.’

Martec can help out in a variety of ways and offers several programmes designed to get the best out of dealers and their staff.

Pursell added: ‘The longest established one is our telephone monitoring and training programme which we have been doing for our whole 21-year existence. In essence it ensures that the enquiries dealers are getting can be kept at a manageable level of conversion. It’s a bit of a safety net from marketing and enquiries, and makes sure that dealers get the results they deserve.’

The firm also has a training team which operates both in and out of dealerships and who do skills training for service advisors and sales people.

‘We have been particularly successful with that this year,’ says Pursell. ‘For example, one of our big projects last year was with Yeomans Toyota who became Toyota Dealer of the Year. Clearly they did not win that award solely because of us, but we were

glad to be associated with that.’

Martec also has a small contact centre that does consumer research for clients.

Pursell adds: ‘Where dealers might not be experiencing the results either in customer satisfaction returns or in profit returns, or in net sales returns, our contact centre often does research on behalf of dealers to find out how they can improve, which has been working really well. We

can talk to customers and then build a training programme for dealers up around that.’

There’s an enquiry management system too.

‘For the last two years, we have introduced management and leadership training which has been very instrumental in turning around some dealers’ performances.’

Sometimes managers need a little more help than sales people, so the firm added a leadership training programme to bring out the best in managers. ‘Now we have a set of training that goes from people’s very first day in a dealership right up to business owners,’ he said.

‘Over the year we will be launching a new version of our telephone success website, continuing with a project of expanding overseas in Australia (Martec originates Down Under, and has 16 customers there) and Ireland, and will be increasing its management training, not just the ‘‘coalface’’ training.’ Perhaps it’s worth giving them a call to see how they can help your business too?

CarDealerMag.co.uk | 51

20,397 prime used cars offered on Autotrade-mail last month P E RC E N TAG E O F F R A N C H I S E D D E A L E R S W H O A R E S U B S C R I B I N G M E M B E R S

53%

60%

17%

45%

25%

27%

65%

51%

37%

48%

77%

30%

27%

39%

34%

30%

31%

42%

47%

20%

38%

19%

24%

59%

29%

34%

29%

42%

30%

41%

27%

57%

50%

20,397 prime used cars offered by dealers last month Run by dealers for dealers Est 1999

Call 01243 523000 for a FREE TWO WEEK TRIAL

to experience the full range of benefits

With 5000 subscribers advertising more than 1000 cars a day, Autotrade-mail subscribers enjoy first choice of the prime stock offered by other members across the UK. Run by dealers for dealers – it works so well because we understand your business.

Only professionals welcome – every month we turn away 30% of applicants who wish to join.

The UK’s leading online real time used-car trading network

focus on.

Suppliers guide Autotrade-mail.com

Golden service W: Autotrade-mail.com T: 01243 523 000

A

‘‘

We are passionate about serving the industry to whom we serve, and serving it well.

‘‘

lways a company that likes to listen to its customers, Autotrade-mail has introduced a tiered membership off the back of subscriber feedback.

The firm, which was established in 2000 and is now part of Trader Media Group, has taken yet another step in making its service as useful as possible to members.

Tiered membership – a move that will reward Autotrade-mail’s most loyal subscribers – will see the introduction of ‘gold’ membership.

‘We want to recognise the loyalty our members have shown to us over the years – that’s why we have introduced gold membership,’ says Kevin Watson, Autotrade-mail’s operations director.

As of the beginning of February, 4,500 of Autotrade-mail’s subscribers have become gold members because of their loyalty to the service.

They are now entitled to unique benefits such as additional supply lines, and twice the number of vehicle registration look-ups.

Gold membership costs nothing and is given to dealers who have subscribed for six months or more. The gold membership is reflective of Autotrade-mail’s attempts at making its subscribers feel satisfied.

Watson says: ‘Our Net Promoter CSI score question asks: “How likely is it that you would recommend Autotrade-mail to a friend or colleague?” And we score 91 per cent. We also asked: “How likely are you to remain an Autotrade-mail customer one year from now?” and we returned 93 per cent.

‘We are proud of these numbers. When members place that amount of responsibility on a business, when they are benefiting and saying such good things, it would be crazy for Autotrade-mail not to listen to their constructive suggestions.’

Autotrade-mail does not only have constructive subscribers, either – they are some of the most professional in the market place too, adds Watson.

‘It encourages us to constantly evolve the business with new innovations such as introducing membership tiering and, only last year, add optional services such as Escrow, a collection and delivery service, and other features that really benefit our subscribers in such a demanding industry.’

And it’s not just anybody who can join Autotrade-mail either. The firm receives an average of 200 requests per month from dealers for a 14-day free trial, but more than 30 per cent of them are

turned away due to the firm’s strict vetting criteria.

‘We are passionate about serving the industry to whom we serve, and serving it well. Therefore we will not have someone on our system that hasn’t got the experience,’ says Watson.

Looking to the future, Autotrade-mail wants to encourage and attract more dealer groups – even though they advertise 20,000-plus fresh vehicles each month and the retention of their members is high.

It’s Watson’s belief that, with the difficulties on the horizon for dealers, Autotrade-mail could be the perfect service for them. With Autotrade-mail, what dealers want to buy can be bought and what they want to sell can be sold. And with a diminishing vehicle parc going forward, securing stock is going to be tough.

‘This is where the dealer groups could really benefit with their unwanted part-exchanges with Autotrade-mail,’ explains Watson. ‘Some manufacturers should wake up and recognise that repatriation of stock oils the wheels of the industry and most importantly for themselves and the profitability of their dealer network.

‘For example, if an Audi sales manager takes in part exchange a Mercedes, surely Mercedes dealerships should get the opportunity of buying that car?’ asks Watson.

Autotrade-mail has 31 per cent of the Mercedes network subscribing to its service, meaning Autotrade-mail can be the perfect solution to moving on unwanted part-exchanges.

Watson continues: ‘Only last week I received this message from a Jaguar dealer: “Thought I would send you a short email to say that, having being one of the first subscribers many years ago, your service is still as good as ever, or dare I say it, even better. Put some partexchanged cars on Tuesday morning at 10am, and all sold within 20 minutes. With lots of other similar sites popping up now, Autotrade-mail is, and will always be our preferred medium”.’

Doesn’t get better than that, does it?

CarDealerMag.co.uk | 53

focus on.

suppliers guide BCA

First for used vehicles W: british-car-auctions.co.uk T: 0845 600 6644

I

n a marketplace that is increasingly starved of good retail quality stock, it makes more sense than ever to source vehicles through the UK’s leading remarketing company, British Car Auctions, says the firm.

BCA has a huge buyer and seller base, offering a range of services that include sophisticated vehicle inventory management and inspection, appraisal, delivery, collection and preparation. For buyers, the BCA Account Card scheme delivers online account management, reports and other benefits.

The company continues to develop services that streamline and improve the remarketing process at every stage. The BCA website is the hub and the starting point for all customers and is a dominant

54 | CarDealerMag.co.uk

force in the remarketing arena, taking 65 per cent of all traffic late last year according to Experian Hitwise.

On any typical day, BCA will have around 13,000 vehicles on offer – that’s more than twice the volume that the nearest competitor has available.

The BCA stock locator quickly refines the search by make, model, location, or any combination of criteria and includes detailed images, a condition rating, pricing data and a comprehensive appraisal report, generated by BCA’s unique Auto Grade software and process.

This means more choice for BCA’s professional buyers and more ways to buy – physical auction, Live Online, Bid Now, Buy Now and e-Auction.

With used vehicles becoming an increasingly

vital profit source for dealers, it is inevitable that both physical auction volumes and specialist online channels will continue to grow in importance for stock acquisition.

Dealers are both buyers and sellers in the remarketing arena and have different needs in both regards. BCA offers a range of services that deliver real benefits when dealers need to remarket partexchange and overage vehicles.

To complement the physical auction programme and online channels, BCA has introduced a new offsite selling mechanism that means dealers can offer their stock direct from their forecourt, getting all of the benefits without any logistics or downtime costs and later this year will introduce a new integrated valuation and appraisal tool for sellers.

W: g-3glasscoat.com T: 01753 215311

I

t’s never easy to stand out in a big group.

Paintseal Europe was founded just three years And perhaps one of the most crowded ago but has already made great strides in the UK areas of the automotive industry at the paint and interior protection market. Its products are moment is paint protection, where there designed to appeal to both the dealer and motorist, is certainly no shortage of operators. and the company has developed a range of ownHowever, there is one product that is different label products with car manufacturers and financial from the rest, enjoying brilliant feedback from institutions. Some big name OEMs have taken this dealers and customers and delivering a longroute to market, including Renault UK, Renault SA lasting, showroom-standard appearance that you (France), Hyundai UK, Suzuki International Europe, and your customers will love.

SsangYong and Mitsubishi UK. G-3 Glasscoat is a top-quality product from The simple truth, says the firm, is that no other Paintseal Europe Ltd and totally unique in that it uses paint protection system can compete with G-3 ceramic technology, which is far more durable than Glasscoat, Paintseal’s flagship product. anything else on the market. In fact it is a staggering Director Rob Collins said: ‘We can substantiate 10 times more long-lasting than many other offerings our claims with video and technical evidence and the company has the stats to show it.

– and of course, we wouldn’t say anything that 77722 Car Dealer Advert 190x142_Layout 1 30/01/2012 12:45 Page 1

It’s so tough it’s even used on spacecraft. And it’s resistant to birdlime.

‘‘

Stand-out service ‘‘ G-3 Glasscoat

wasn’t true. The trouble with a lot of systems is that people are asked to pay hundreds of pounds for them... then see them popping up for much less on eBay. That damages those products’ credibility and you just don’t get that with us.’

Among the features that make the G-3 system different are the facts that it is guaranteed for five years; 9H pencil lead hard; and completely solvent resistant. It’s so tough it’s even used on spacecraft.

And it’s resistant to birdlime.

Collins says the sales executives currently working with G-3 enjoy a very high level of support from the company, and love the feeling of confidence they experience from working with ‘a controlled chemical, not a posh polish’.

G-3 Glasscoat really is out of this world. [CD]

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CarDealerMag.co.uk | 55

DATA FILE.

TopTips n

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

Are you into

social media?

Should dealers be busy on Facebook and Twitter?

Or is it a waste of time and effort? Dave Brown reports

F

acebook and Twitter. They’re for kids, right? Or if not kids, maybe soap stars and other minor celebrities with nothing better to do but spend their days bickering online while the rest of us try to get some work done.

But have you ever thought how you could harness the two main social media sites to generate sales for your business? There’s no cost – all it takes is a bit of time setting up a Facebook page or a Twitter account and you’re away. It might sound simple, but there are pitfalls. And avoiding them is key.

Nikki Jolley, group marketing manager at dealer RRG Group Limited, based in the north-west, said: ‘There isn’t a specific right or wrong way to go about your social media strategy but if done well it can have positive benefits.

‘Someone within the dealership needs to ‘‘own’’ the strategy – nominating someone to tweet and

TOP TIPS EXTRA

Google+ advice 1. Put your customers into Circles.

Different people have different interests, and on Google+ the way you talk to them can reflect that. Circles let you group customers by location, interest and more.

2. Engage with your customers with face-to-face Hangouts. Hangouts let you set up one-click video conversations with customers and colleagues alike.

3. Recommendations can benefit your business. When someone clicks the +1 button on your Google+ page or other web pages, their friends can see their recommendation and comment on it, and spread the word about your content.

4. Notifications help you keep up with your customers. Your notifications panel lets you know when people are engaging with your brand on Google+.

56 | CarDealerMag.co.uk

post on behalf of the dealership who has no interest in Facebook or Twitter is absolutely fruitless.

‘Make content relevant and timely and try not to be too salesy! Keep personal opinions – particularly about football, religion and politics – to yourself.

Anything that you wouldn’t discuss in a showroom or put in print is probably best left off.

‘And go for quality not quantity – don’t bombard your followers. A few relevant and interesting tweets throughout the day are more favourable than a flurry of 10 just after lunch when you’ve thought of something to talk about.’

Daksh Gupta, chief executive of Marshall Motor Group, won Car Dealer’s Social Media User of the Year award at last year’s Ewards.

He told us: ‘Social media in the business environment has really come of age in the last 12 to 18 months and we got on board from the beginning with Facebook, YouTube and Twitter among many others. We encourage every dealership to engage with this new channel of communication and I also get involved directly, on behalf of the whole company, with regular tweets at @marshallmotorgp. At a branch level we tweet about special offers, manufacturer announcements, dealership events and so on.’

Daksh has identified the following four steps to make social media work in a dealership: 1. Look around to see what others in the industry are doing, including your own manufacturer partners.

2. Treat it as a business activity, so set goals and work out what you have to do to get there.

3. Put someone in charge who really understands your business and social media.

4. Once started, keep it going and remember to listen as well as transmit.

Josh Sadler, the founder of the independent Porsche specialists Autofarm, added: ‘In the last three months we have started to place a greater emphasis on our Twitter and Facebook accounts.

‘We are already engaging with more customers

on a one-to-one basis with a growing number seemingly more happy to pose a question on Twitter than call us up! The downside is the time taken to monitor a further two customer inquiry streams and ensure that the content we put out is relevant and specific to Porsches.

‘For the latter, we have weekly round-ups with the workshop and project teams to find out what interesting cars or jobs are coming in and we try to get pictures of the cars if our customers are happy to allow us to do that.

‘One example is a car rebuild that customers can follow updates on via Twitter. Our verdict on its real value is still out but even at our size and scale, it seems like it is worthwhile to trial.’

Building your reputation by doing the basics well is key, according to Al Clarke, chairman of the Motor Industry Public Affairs Association.

He said it was vital to have a clear purpose and that car dealers should ask themselves the following question: ‘Are you offering valuable information, connecting with customers, seeking new prospects or building a reputation?

DataFile CONTENTS.

Right click 59 Net Gains 61 Auctions 62 Shares 63 The Statistics 65

SMMT sales figures 66 Suppliers guide 68 Trader directory 70 Jobs 72 Time Is Money 74

NOT EVERYONE’S KEEN

What Citroen says WE would say to our network not to get massively involved in social media/Twitter communication at local dealer level, unless they are very clear about the amount of time and commitment that this creates.

It’s better to allow us as a manufacturer to run a credible, content-rich Facebook site and let us create the ‘demand’ that then drives the prospect to seek out a Citroen dealer.

Dealers who get involved in social media may find the amount of time and effort involved keeping it relevant and up-to-date in relation to the amount of likely contact cannot be economically justified.

Autofarm’s Twitter followers are tracking the progress being made rebuilding this Porsche 911

‘This is evolving territory and new opportunities emerge all the time.’

‘Be focused,’ he urged. ‘Don’t just broadcast sales offers. Build contacts – develop a good reputation and brand advocacy by having a dialogue, offering valuable content and being human.

‘Tailor your content – different social media have different approaches. And keep learning – this is evolving territory and new opportunities emerge all the time.’

Mannheim Retail Services said being involved in social media would enable car dealers to get involved in ‘reputation monitoring’ and make them more aware of what people were saying about them.

‘Even if you are not participating in any sort of social media activity, it’s likely that conversations about your business are already taking place,’ said Neil Packham, Manheim’s sales director.

‘Google now indexes content driven by social media channels, meaning if people are posting comments about your business, they may start to appear on the first page of Google.’

Packham said there were a number of free things you can do to start to be ‘socially aware’. Firstly, you can Google yourself: If anyone is posting anything about your business which is generating a level of interest, you should be able to view this in Google.

Then you can set up Google alerts: go to google.com/alerts and set up alerts so you get notified if anything is posted and picked up by Google around your business. And thirdly, start using some of the hundreds of social monitoring tools on the market that allow you to keep an eye on what is being said about your business.

When embracing social media, car dealers need to ask themselves a vital question: ‘How can I be different from the manufacturer?’ That’s the view of Tim Smith, commercial director at GForces.

He told us: ‘If a customer wants to find out about a car brand, they tend to follow the manufacturer – not the local dealership. Manufacturers integrate

their social activity into every marketing campaign, gaining huge visibility.

‘Car dealers need to be different, and vitally, Facebook and Twitter should not be considered as direct sales tools. Trying to shift that car which has been on the forecourt for the last six months is unlikely to wash with your followers!’

Kevin Meeks, network and business development director for Volvo Car UK, also highlighted the connection between the dealership and the brand.

He said: ‘Twitter can be a powerful marketing tool for dealers, but it’s important to remember you’re also promoting the brand, not just your dealership.

It demands a subtle approach, (it is meant to be a conversation after all), so try and keep it human.’

Ford UK is one manufacturer that has embraced social media.

The company currently operates a successful Twitter page, an active YouTube site and a recently launched Facebook page, gained more than 15,000 ‘likes’ in little over one month.

Kim Male, Ford community manager, said: ‘Being a friendly, approachable face of the business is key to striking a good relationship with fans. Social media channels can be great interaction tools that offer an alternative to ‘‘help’’ emails and phone calls.’

So, maybe social media isn’t best just left to the kids after all... We look forward to tweeting you! [CD] With thanks to...

Josh Sadler, autofarm.co.uk Nikki Jolley, rrg-group.com Al Clarke, mipaa.com Neil Packham, manheimretailservices.co.uk Kim Male, ford.co.uk Kevin Meeks, volvocars.com Daksh Gupta, marshallweb.co.uk Marc Raven, citroen.co.uk Anoek Eckhardt, google.co.uk Tim Smith, gforces.co.uk

CarDealerMag.co.uk | 57

RIGHT CLICK.

..in association with GForces

Looking forward to a seamless experience Franchised dealers need to play catch-up when it comes to online booking... and help is on the way so they can do exactly that

W

ith profits from new car sales under continued pressure, dealers are scrutinising every corner of their businesses to find ways to further reduce costs and optimise established revenue streams.

Adding urgency to the process, the same factors that are undermining new car demand are contributing to reduced income elsewhere in the dealership. Dealers consequently have to streamline their processes and maximise customer loyalty – just to protect their profits.

Nowhere is this more relevant than in the service department. A recent study by an aftermarket research body indicates that a significant number of customers will shun franchised dealers for aftersales work in the coming few years – indicating upwards of £80m of lost business in a market worth around £2bn in total. Motorists are migrating to independent and fast-fit outlets.

Slow adoption of technology has not helped franchised outlets. Most large fastfits offer an online booking function on their websites. Hardly any franchised car dealers in the UK offer even the most basic online booking function. Given

Dealers need to maximise customer loyalty in their service departments

that 45 per cent of people locate a car dealer online, this is a glaring omission.

However, systems are now becoming available that can quickly and easily be built into a dealer’s website, providing functionality and userfriendliness, both for the dealer and customer.

With such software solutions, customers enter their vehicle registration number (via VRM lookup), mileage and postcode on the dealer’s website, locating their nearest dealership.

The system then returns a price, based on the manufacturer’s service schedule, or the dealer’s fixed-price matrix. At this stage a customer can add extra options (such as an MOT) and then they will be presented with the total price.

Customers can even choose a ‘while you wait’ appointment or a courtesy car, select from available service time-slots, and, enter their details to confirm the appointment. The final stage is an email, sent to both customer and branch as confirmation. These systems are in the final stages of development and, once finished, will provide a seamless user experience.

From an administrative perspective, online service booking holds many benefits. Dealers can offer prices based on a manufacturer’s schedule

or set service options. Labour hours are in-built, so the system knows how many services can be booked that day and booking a service removes that timeslot from the system.

Systems are also customisable for what a dealer can offer, and what they wish to upsell.

Seasonal or locational offers can be added through additional price matrices to help increase transaction values.

Perhaps the main benefit is the way a webbased system connected into a DMS saves on costs and administration. Rather than staff disseminating booking details into the DMS, the customer’s input is entered directly into the system from the internet. This way, a service department will know what vehicles to expect, the work required and the time when the vehicle will be in the workshop.

In an age when consumers expect to transact via the web, online service booking gives dealers an edge in the battle for custom.

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.

‘From an administration perspective, online service booking holds many benefits.’

IT AIN’T ROCKET SCIENCE A STREAMLINED, FLEXIBLE AND HASSLE-FREE ONLINE SERVICE BOOKING SYSTEM. Call GForces on 0845 658 9290 visit www.gforces.co.uk to find out more.

CarDealerMag.co.uk | 59

List your entire stock for free

The new way to sell used cars List your entire stock for free Only pay when customers visit your website

We’ll never tie you down with a contract Track sales with our postcode tracker

Visit netcars.com/dealers or call 0800 138 9135

NET GAINS.

..in association with Codeweavers

Get the rice right before you make the sushi!

In other words, the first step in web marketing is making sure the basics are in place

M

arketing blog posts, magazine columns (even this one, from time to time!), articles and seminar speeches can sometimes make the mistake of assuming that the audience already knows the basics of web marketing.

By basics, I mean things like: n a deep-seated empathy for what your customers want. n how to create a compelling case for why people should buy from you. n copywriting and design. n measuring response rates and web traffic effectively.

Take a look at this list. How comfortable are you that your website demonstrates a strong performance in each of these areas? If you are comfortable that you have these boxed off, then I would indeed agree that going for the very latest in web technologies should indeed be your next goal – you have obviously got the basics in place, and are refreshing them regularly.

If you require some help with the basics, then of course you can engage web marketing consultants and/or read up on the subject yourself. Just bear in mind that unless the basics are right, then the rest will be built on shaky foundations.

A good analogy is that of the sushi chef. When they first start training, they are sometimes

‘Many customers will have had bad experiences of the motor industry.’ simply tasked with making the rice for the head chef – sometimes for months or even years. The idea is that if the rice isn’t right, then it doesn’t matter what you do – your sushi will be hopeless.

One suggestion for making a real improvement in this area is to concentrate on small incremental improvements to your web strategy, rather than wholesale changes implemented together.

When you implement a single change you can monitor its effect on your business. If you were to implement a series of changes at once, then you may struggle to measure where any success or failure is coming from. Sounds like common sense, but it is rarely done.

Also, try to make your customer’s web experience as difficult to imitate as possible.

Many dealers will look at other sites and try to adopt or plagiarise ideas or functionality, but

if every site offered exactly the same then there would be no differentiation at all.

It would be much better if you enhanced your site by being able to demonstrate what makes you different, and what shows you care.

These are the aspects of your web offering that then become very hard for anyone to replicate.

Remember, many customers will have had bad experiences of the motor industry, and this is a real opportunity to show you are customer focussed. How about a short website video from the MD, highlighting what you do differently from anyone else?

It puts a human face to your business that becomes difficult to copy.

Of course, you need to make sure you live up to the promises that are made, but that’s another story.

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.

IF OPPORTUNITY DOESN’T KNOCK, BUILD A DOOR

0800 021 0888 | www.codeweavers.net | contactus@codeweavers.net

CarDealerMag.co.uk | 61

auctions.

Henstock

auction stations

Accurate appraisals are more important than ever

T

here are already signs that 2012 is going to be a tough market to sell cars in, and the wholesale markets are no exception.

This means it is going to be even more important to accurately appraise and value the vehicles that are traded and part-exchanged in the day-to-day running of the dealership business. This starts with introducing effective processes that are followed every time a used car is appraised.

BCA is currently field-testing a sophisticated webenabled tool that can work in the dealership via a PC or tablet to generate consistent, auditable appraisals and provide a trade valuation. A further element allows vehicles to be remote entered for sale in BCA’s online Bid Now, Buy Now and e-Auction programme making the whole process seamless.

When margins are tight and profit opportunities are at a premium, it is critical to instil good practice into used car appraisals, however you carry out the process.

Overvalue a part-exchange and the chances are that vehicle will be traded at a loss. Undervalue it and a potential retail sale may walk away.

Everyone knows this, but when dealing with the daily minutiae of running a dealership it can be easy to lose sight of the important principles that underpin the business.

Sometimes a ‘back-to-basics’ approach can reap rewards and conducting an accurate cosmetic appraisal is about routine and procedure.

Always walk around the car you are appraising in the same way and complete the required checks in the same order. Take your time and don’t be hurried.

BCA recommends that all inspectors and appraisers should have some formal training and that should be followed up with refresher courses.

Getting control of the appraisal procedure will help every dealer to keep in tune with the marketplace.

In today’s professional used car environment, benchmarking cars from a price guide is not enough.

Dealers should avail themselves of every tool in the box and that means conducting thorough appraisals to generate accurate valuations that lead to profitable business.

‘Dealers should avail themselves of every tool in the box.’

Who is Simon Henstock?

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

62 | CarDealerMag.co.uk

Seat commits to fleets bit.ly/SeatFleets

Double boost as BCA retains two contracts Company praised for consistently high service levels

B

CA has announced the retention of two major volume contracts.

Jardine Motor Group and UKcargroup.com have committed to sell the vast majority of their combined volume with BCA into 2012. The UKcargroup.com and Jardine agreements are for 12-month periods.

Sales director Mark Hankey said: ‘These two accounts represent a substantial volume of vehicles – well into the tens of thousands – that will be available to BCA buyer customers this year. With the continued squeeze on supplies of good-quality stock generally available to the wholesale markets, this is good news indeed.’

BCA will handle nearly all of the available stock for remarketing from UKcargroup.com, and the majority of stock from Jardine, with the balance being benchmarked through other remarketing suppliers.

Noel McKee, managing director of UKcargroup.com, said: ‘BCA are geared to delivering a consistently high level of service across our account and generate excellent returns for the widest range of stock – whatever the age, mileage or condition.

‘We conducted stringent benchmarking

ARVAL on board AUCTION company Aston Barclay has announced the addition of the fleet and fuel management firm ARVAL to the Monday fleet sale programme at its site in Chelmsford.

The sales, which will feature a mix of models and makes, will run on the first and third Mondays of the month throughout the first quarter of 2012.

Aston Barclay say they expect at least 60 vehicles to be entered in each sale.

In addition, all of the vehicles available in the sale will be offered live online, allowing vehicles to be easily accessible for customers of Aston Barclay’s other two sites in Westbury and Prees Heath, and giving the sale national coverage for those buyers not yet catered for by a local Aston Barclay auction centre.

exercises with a number of remarketing companies and while some suppliers may look cheaper on paper, when it comes to positive outcomes BCA are the best in class.’

Simon Everett, group operations director, Jardine Motor Group, said: ‘BCA have provided an excellent service over many years, but in view of the current economic conditions it is both timely and good business practice to test the market and benchmark results.’

Hankey added: ‘We welcome the challenge of benchmarking our performance against our competitors and have complete faith that our comprehensive remarketing package will continue to outperform the market on an end-to-end basis.

‘BCA’s enhanced marketing capability, multi-faceted service provision and dominance in the online sector are powerful arguments when pitching for business and we are delighted to have secured this volume for our buyer customers to choose from.’

RSPCA’s solus deal for South Coast auction site THE RSPCA recently awarded Shoreham Vehicle Auctions a solus deal to handle the remarketing of all of its ex-fleet vehicles.

Having worked with the RSPCA for over a year, the South Coast-based auction house will now take care of all the RSPCA’s 740 ex-fleet vehicles. The company was chosen as part of a tendering process, due to the high level of personalised services it offers and its strong track record in remarketing ex-fleet vans and cars.

Tony Branch, RSPCA fleet manager, said: ‘From the companies tendering for our business, Shoreham has always delivered on personal service levels, as well as achieving the best prices for our ex-fleet vehicles.

‘Shoreham is a great help with the challenges of running a fleet and always comes back with solutions not problems.

We’re pleased to be working with them.’

SHARES.

..in association with ASE-global.com

We’re relying on bid rumours to provide short-term gains Pendragon has moved up by 50 per cent in a month as the market awaits developments

MANUFACTURERS MAKE A STRONG START TO 2012 A total of 4,282 Kias found new homes in January.

Left, the Kia Optima

I

t has certainly been an entertaining start to the new year among the automotive retail stocks. Prime mover has been Pendragon which has climbed from an opening position of 8p per share to 12p, a nice gain of 50 per cent in the month.

The price gain has been driven by takeover rumours, with the market standing by for a bid following share purchases during the month.

At the end of January, Odey Asset Management emerged as the buyer of shares, converting CFDs to equity leaving themselves with more than 27 per cent of the company.

At 30 per cent, according to Takeover Panel Rules, they would have to make an offer for the remaining 70 per cent.

The rumour mill is rife as to whether Odey have acquired the shares for their own use to mount a takeover, as they see that their portion could help someone else mount a takeover in the future, or on behalf of a client who is planning on mounting a bid.

Putting two and two together, some speculators

‘All eyes will be on any rumours regarding Vertu’s full-year performance.’ have gambled that the stake has been acquired on behalf of Lookers. This has led to a spike in the Lookers share price, which has jumped from 50p to 58p.

Whether this represents the building of a stake to make a bid or the building of a significant position in a company Odey deem undervalued will be one to watch over the coming months.

Another significant riser since the start of 2012 has been Inchcape, which has seen the share price increase by 18 per cent.

Rather than being based on a gamble on bid rumours, this appears to be based on revised assessments of the fundamentals of the business.

Investors have made the assessment that the share price fell too far during the latter part of 2011 with Inchcape remaining a sound,

THE first month of 2012 has proved to be a successful one for a host of car manufacturers.

German firm Mercedes-Benz reported registrations had jumped a massive 20 per cent in January compared to the same month last year, to 6,249 cars. That means their market share, so far in 2012, is 4.85 per cent – currently beating their sales director’s predictions for 2012, as revealed to Car Dealer on p21.

Top performers for the three-pointed star were the E-Class estate with 327 registrations – up by 82 per cent on January 2011 – and the Smart Fortwo that returned a rise of 89 per cent with 385 new cars.

Kia has also got off to a strong start in 2012 with registrations up 38 per cent compared to 2011. Kias found 4,282 new homes in January with both the retail and fleet markets up significantly – retail sales rose 33.6 per cent (to 2,010 units) while fleet sales rose 42.4 per cent (to 2,272 units). Market share in January was 3.32 per cent – up from 2.41 per cent in 2011. geographically diverse business.

This view was supported by a JP Morgan who see scope for a similar further increase in the share price.

The start to the year among the other UK listed motor retail stocks has been considerably steadier.

Vertu have added a Vauxhall dealership to their portfolio and have given back some of the gains earned in December.

All eyes will be on any rumours regarding their full-year performance. Cambria has seen a small gain since the start of the year, with HR Owen and Caffyns staying largely steady.

Aside from the bid rumours we have not seen

Peugeot declared January’s total rise in new car registrations of 0.03 per cent as ‘remaining static’, and referred to its 6.4 per cent rise as ‘a good start’. Retail sales were up 3.2 per cent and fleet up by 8.8 per cent, and its 207 model sneaked into 10th spot in the January bestsellers list.

Nissan’s sales also rose in January.

Registrations in the UK jumped 21.5 per cent year-on-year for the Japanese brand, and its Sunderland-built Qashqai sat in eighth place in the new car registration figures for the month of January.

Meanwhile Isuzu has published its sales figures. Registrations of Isuzu pick-up vehicles in the UK rose by 11 per cent last year, putting the UK market firmly at the top of the brand’s European sales chart. A total of 2,431 Isuzu Rodeo pick-ups were sold by the 97-strong UK dealer network, up by 11 per cent compared to 2010 and equivalent to 17 per cent of all Isuzu registrations across the continent. any significant changing of sentiment in the market over the performance of the UK motor retailers during 2012.

The good start to the year within the used vehicle market would likely have to be sustained throughout the first quarter for any of the listed businesses to deem it worthy of commentary.

It could provide some potential upside to 2012, however performance will principally depend on the results for March.

In the absence of any significant movement in the fundamentals and long-term trends we are left with bid rumours to drive short term gains for investors.

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 | 63

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DATA FILE.

..in association with

Thestatistics Used Cars n Top 10 Searches n SMMT Sales Data

Why size matters for dealers as Chevrolet’s range gets bigger A

growing product range could present problems for Chevrolet’s dealer network, Car Dealer can report.

This year will see Chevrolet’s product range grow to nine models as the American brand increases its presence in the UK market.

But this growth could be a problem for some of Chevrolet’s 87 dealers as their premises might not be big enough.

‘It certainly is a problem and it is something we are taking a look at,’ Chevrolet’s managing director Mark Terry (pictured) exclusively told us.

‘We have got a number of dealers who will not have the space to display our growing product range – and we are in talks on how we can work with them on this.’

Terry said Chevrolet will be looking at each dealer individually to create a solution, but no decisions will be broad and sweeping.

‘We will not take a lofty position and write-off a number of dealers who do not fit our growth plans in one swoop.

Inevitably there will be a few dealers who we will have to part with, but we will be as

flexible as possible in order to keep them on board.’

One option could be moving dealers to a separate site in order to give them more space.

‘We have done this with a large dealer group,’ said Terry. ‘Their Chevrolet site used to be a dual-franchise with Vauxhall, but there was no chance to grow the Chevrolet side. They will now be moving Chevrolet to a separate site.’

It is Terry’s plan to increase the network to 110 over the next 12 months with North West London being his number-one open point. Stockport, Woking/Aldershot, Milton Keynes and Slough/High Wycombe are the other four of Chevrolet’s top five most desirable places to open dealerships.

Motorists facing a struggle to pay their car bills A QUARTER of motorists are struggling with the expense of running and maintaining their car, according to new research.

New findings from the second ‘Driver Satisfaction Index’, commissioned by Motors.co.uk in partnership with YouGov, reveals that motorists are making severe

cutbacks to their spending, so they can fund the running and maintenance costs of their car.

More than a quarter of motorists (26 per cent) said they have reduced their weekly grocery shopping as a result of the rising costs of owning and maintaining a car.

Kelleher

Market insight

Question of perception

A

ccording to TGI.net data, 54 per cent of used car buyers in the UK in the last six months were female, a significant statistical bias relative to the gender split within the population as a whole, made even more interesting by the fact that most motoring websites have a slight 53 per cent male bias in terms of user base.

Furthermore, according to recent research we conducted with 1,000 ‘in-market’ UK car buyers, while 39 per cent of the sample overall expected to buy their next car from a franchise dealer, there was a clear difference in terms of male/female split, with 45 per cent of men expected to buy using this route compared to just 34 per cent of females.

As you might expect, of the 21 per cent of respondents who expected to buy privately, the opposite gender split was apparent, with private buyers nine per cent more likely to be female.

In terms of the reason that a higher percentage of women wanted to buy privately next time, the most cited reason was because they believed they would get the car at lower price, a data point that appears to support anecdotal evidence of women fearing being overcharged by franchise dealers more than men.

While there was also plenty of evidence in our survey that men and women were motivated by many of the same factors in terms of their next car purchase, there appear to be some perception issues that franchise dealers need to overcome to ensure they capitalise on the whole of the market.

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 | 65

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

An ‘exciting year’ starts with a small rise in registrations New car market is expected to remain stable in 2012

N

ew car registrations rose 0.03 per cent to 128,853 units in January, according to the latest figures from the SMMT. Diesel and alternatively-fuelled cars increased volumes by 6.3 per cent and 17.7 per cent respectively.

The new car market is expected to remain stable in 2012, dipping by just one per cent to 1.92m units, before recovering in 2013.

‘The January new car market held firm with 128,853 registrations, marginally up on January 2011, a welcome sign of stability in uncertain economic times,’ said Paul Everitt, SMMT chief executive.

‘2012 is set to be an exciting year with record numbers of new models coming to market filled with innovative technology that will save the motorist fuel, enhance comfort and further increase levels of safety and security.

‘However, to maintain market stability, the government must act decisively and deliver much-needed confidence to businesses and consumers.’

January typically accounts for around seven per cent of annual registrations, ahead of the key March market, which typically

represents 18 per cent of the annual market and approximately 65 per cent of volumes registered in quarter one.

Sue Robinson, director of the RMI National Franchised Dealers Association (NFDA), added: ‘The growth in sales last month shows some sign that the market is finally beginning to recover.

‘However, the government still needs to look at schemes that could improve consumer confidence and boost spending to ensure the growth continues. This is a message we relayed at our recent MP and ministerial meetings.’

January’s rise in registrations was a surprise for John Leech, partner in KPMG’s automotive practice.

He said: ‘Despite a gloomier macroeconomic picture than a year ago, more new cars were sold in the UK in January 2012 than

in January 2011.

‘This is surprising because almost 200,000 cars were pre-registered by the industry in December 2011 which will have depressed January 2012 new car registrations compared to January 2011.

‘This should give confidence to the car industry as demand is likely to be more resilient than previously thought and this combined with inventories being close to their longrun average gives rise for cautious optimism about the industry’s prospects over the coming months.’

The Ford Fiesta (above) was the best-selling model in January.

Four of the top sellers were superminis and the segment showed the largest rise in volumes during January.

Growth in demand for luxury, dual-purpose, executive and sports segments was also evident.

sales@motors.co.uk

0845 265 6000 www.motors.co.uk/mediacentre 66 | CarDealerMag.co.uk

..in association with

SMMT sales data Jan/year to date January Marque

Abarth Alfa Romeo Aston Martin Audi Bentley BMW Chevrolet Chrysler Citroen Daihatsu Fiat Ford Honda 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

2012

49 538 63 8,563 107 6,249 2,064 98 4,041 0 2,886 20,061 3,263 4,066 33 915 158 4,282 3,492 741 23 36 1,784 6,273 107 1,595 555 6,285 35 7,282 409 23 2,802 4 2,430 3,718 385 43 224 1,185 5,756 12,110 11,589 2,373 64 94 128,853

% market share

0.04 0.42 0.05 6.65 0.08 4.85 1.60 0.08 3.14 0.00 2.24 15.57 2.53 3.16 0.03 0.71 0.12 3.32 2.71 0.58 0.02 0.03 1.38 4.87 0.08 1.24 0.43 4.88 0.03 5.65 0.32 0.02 2.17 0.00 1.89 2.89 0.30 0.03 0.17 0.92 4.47 9.40 8.99 1.84 0.05 0.07

BMW -28.39%

SMART 89.66%

Year to date (YTD) 2011

% market share

2012 % Change

78 595 55 8,302 75 8,726 939 56 5,126 2 2,488 19,657 3,957 3,974 31 856 80 3,100 2,530 469 19 37 2,189 5,195 2 1,614 760 5,174 31 6,842 360 34 3,867 452 2,400 3,061 203 3 181 1,069 5,557 15,311 11,041 2,116 114 83 128,811

0.06 0.46 0.04 6.45 0.06 6.77 0.73 0.04 3.98 0.00 1.93 15.26 3.07 3.09 0.02 0.66 0.06 2.41 1.96 0.36 0.01 0.03 1.70 4.03 0.00 1.25 0.59 4.02 0.02 5.31 0.28 0.03 3.00 0.35 1.86 2.38 0.16 0.00 0.14 0.83 4.31 11.89 8.57 1.64 0.09 0.06

-37.18 -9.58 14.55 3.14 42.67 -28.39 119.81 75.00 -21.17 -100.00 16.00 2.06 -17.54 2.32 6.45 6.89 97.50 38.13 38.02 58.00 21.05 -2.70 -18.50 20.75 5,250.00 -1.18 -26.97 21.47 12.90 6.43 13.61 -32.35 -27.54 -99.12 1.25 21.46 89.66 1,333.33 23.76 10.85 3.58 -20.91 4.96 12.15 -43.86 13.25 0.03

49 538 63 8,563 107 6,249 2,064 98 4,041 0 2,886 20,061 3,263 4,066 33 915 158 4,282 3,492 741 23 36 1,784 6,273 107 1,595 555 6,285 35 7,282 409 23 2,802 4 2,430 3,718 385 43 224 1,185 5,756 12,110 11,589 2,373 64 94 128,853

%market share

0.04 0.42 0.05 6.65 0.08 4.85 1.60 0.08 3.14 0.00 2.24 15.57 2.53 3.16 0.03 0.71 0.12 3.32 2.71 0.58 0.02 0.03 1.38 4.87 0.08 1.24 0.43 4.88 0.03 5.65 0.32 0.02 2.17 0.00 1.89 2.89 0.30 0.03 0.17 0.92 4.47 9.40 8.99 1.84 0.05 0.07

2011

Figures supplied by SMMT

%market share % Change

78 595 55 8,302 75 8,726 939 56 5,126 2 2,488 19,657 3,957 3,974 31 856 80 3,100 2,530 469 19 37 2,189 5,195 2 1,614 760 5,174 31 6,842 360 34 3,867 452 2,400 3,061 203 3 181 1,069 5,557 15,311 11,041 2,116 114 83 128,811

0.06 0.46 0.04 6.45 0.06 6.77 0.73 0.04 3.98 0.00 1.93 15.26 3.07 3.09 0.02 0.66 0.06 2.41 1.96 0.36 0.01 0.03 1.70 4.03 0.00 1.25 0.59 4.02 0.02 5.31 0.28 0.03 3.00 0.35 1.86 2.38 0.16 0.00 0.14 0.83 4.31 11.89 8.57 1.64 0.09 0.06

-37.18 -9.58 14.55 3.14 42.67 -28.39 119.81 75.00 -21.17 -100.00 16.00 2.06 -17.54 2.32 6.45 6.89 97.50 38.13 38.02 58.00 21.05 -2.70 -18.50 20.75 5,250.00 -1.18 -26.97 21.47 12.90 6.43 13.61 -32.35 -27.54 -99.12 1.25 21.46 89.66 1,333.33 23.76 10.85 3.58 -20.91 4.96 12.15 -43.86 13.25 0.03

Smmt Has Removed The Following Brands As They Registered No Vehicles In The Uk In 2011: Cadillac, Corvette, Daimler, Dodge, HuMMER

CarDealerMag.co.uk | 67

data file.

Alex Goy

all torque

Steer clear of ‘slightly used’ cars to avoid pain

I

just watched a video. It was of a man having a rather spectacular off in a Cobra.

He was on a track day, hooning around (as is the way these things go, I’m told) and his car veered right for no reason.

He wasn’t being a tool, just enjoying his car. Shortly after he veered off, he spent rather a long time upside down, on his side and skidding. The video proclaims that, post-off, there was 500 feet of debris and probably a giant insurance claim. I mean, Potters Bar rail crash big. ‘What was the cause of the crash, sir?’

‘Erm… there was a lion..?’

It did get me thinking, though. About buying used cars, more importantly ones ‘wot have been in a smash’.

You see, the chap in the video is now selling his ‘almost new’ car. Perhaps he’s going to buy a slightly safer MX-5 to build his confidence back up. Anyhow, it made me think about looking for a new car.

Scouring the likes of Auto Trader and Pistonheads is all well and good when you’re playing with imaginary megabucks, but when you’re looking for something to actually live with, there are a few things that almost instantly put off your average punter/lazy person. The first is the obvious scam (though an alarming number of people still turf over £5k to a ‘shipping company’ to deliver a £12k 59-plate TT from Spain) about which very little can be done and the other is a cat C/D motor that’s been restored.

Yes, budgets can be limited, but very few people will go for a used car that’s been fixed by anyone other than a main dealer. Myself included, for that matter.

So what can be done to circumvent any fears?

Dishonesty is not an option. Even if that detail is left off the listing and there’s a perfectly good alternative on the forecourt, why would anyone stay to see it? Fool me once…

No, be honest. Really honest. Detail the damage, display pics of the paperwork to say it’s fixed and legal, make people trust you not only to sell them a car, but that you’ll fix it in case it goes wrong.

Alternatively… don’t stock any ‘slightly used’ cars.

You might save yourself a world of pain.

‘Shortly after he veered off, he spent a long time upside down...’

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 68 | CarDealerMag.co.uk

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CarDealerMag.co.uk | 69

data file.

James Litton trader tales

A protracted process can help me keep the cash

I

n the last few weeks I have been confronted with two customers attempting to cancel orders for cars which were built at the factory to their specification.

Our dealership is not one which encourages the receipt of a deposit subject to the world being round. I have never adopted this approach.

While some may argue it is a way of eliminating someone from the market, it only really serves as a potential customer service issue further down the road. Therefore when I am notified of a cancellation I take it personally.

In the first instance I was able to retain the deposit. The customer had sent through an insurance certificate so the car was taxed.

As he then attempted to change the terms of the contract, I was able to retain his deposit.

In the second case – as for many manufacturers last year – the tsunami had delayed the availability of certain parts and as a result the car was late. When the customer was notified of the change of delivery date, he was fine.

Two months later when the car was delivered the customer disappeared. The next communication was to tell us he was ‘thinking about it’.

I told him that his deposit was forfeit and that if he had any legal representation that they should contact me.

Three days later the letter appeared. I told them in my reply that I would be deducting storage, interest charges and a loss-of-profit sum. I then received another letter saying that the customer wished to leave the amount ‘on deposit’ against another order.

The legal position is such that the retention of a deposit cannot be used as a punitive measure against a customer for cancelling an order.

You can deduct any costs which may have been incurred as a result of the cancellation but these are very hard firstly to itemise and secondly to prove.

I find it frustrating that we can order a car for £45,000 and yet still have absolutely no recourse if the customer decides against it. However, I have learned that if I protract the process for as long as possible, invariably the money stays where it rightfully should.

‘When I am notified of a cancellation, I take it personally.’

Traderdir Alfa Romeo

Alfa Romeo

Alfa Romeo

Sturgess Alfa Romeo

Benfield Alfa Romeo

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

Mangoletsi (Holdings) Ltd. London Road (A50), Allostock, Knutsford, Cheshire, WA16 9NS Tel: 01565 722899 Fax: 01565 722229

Aston Martin

Audi

Audi

HWM Aston Martin

Wimbledon Carriage Company Limited

Walton & Epsom Audi

John Crisp 07885 211872

Mark Loughnane 01932 220404 07739 519306

BMW

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

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

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

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

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 is sales manager at Tony Purslow Mercedes Benz, Guildford. He always has something to say about the industry he loves.

70 | 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

Ford

Ford

Honda

Honda

Benfield

Benfield Alfa Romeo

Lifestyle Ford

Honda

Thames Honda Group

Honda

Hyundai

Hyundai

Jaguar

Jaguar

Holdcroft Honda

Bushey Heath Hyundai

Hatfield Hyundai

Sturgess Jaguar

Charles Hurst Jaguar

Jeep

Kia

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

Richard Walker 07748 177889

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

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

Jon O’Donoghue 0208 420 5100 07976 177 959

Lee Gilmour 01923 263700 07768 367085

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: NISSAN MICRA DIG-S

Lotus

Maserati

Beadles Land Rover

Car dealer says HHHHH

Murray Motor Company

Meridien Modena

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

The performance of a 1.5 litre with the economy of a 1.0 litre thanks to a clever new engine from Nissan. We like.

Brandon Ware 0131 200 8888 0750 326 0186

Warren Butt 02380 283404 07860 530703

Price: £11,150, tested in Issue 44

Maserati

Mazda

Mini

Want this spot?

Nissan

HR Owen

Lifestyle Mazda

Vines Group

Your advert here

Nissan

Toyota

Volvo

General

Get noticed

Want this spot?

Currie Motors Toyota

Sturgess Volvo

Barry Freedman

This slot has caught your eye...

Your advert here

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

Dave Cooper / Steve Gurr 07831 704134 07921 408983

Mark Spowage 01293 845045 07974 770020

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

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

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

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

Making sure you’re in front of other dealers when they need to trade their cars on is vital. And for £30 per month you’d be mad to miss out!

... and thousands of your customers could be reading this too. For £30 per month, can you afford to miss out?

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

Making sure you’re in front of other dealers when they need to trade their cars on is vital. And for £30 per month can you afford to miss out?

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

Payments can be made online via credit or debit card. Or send your cheque made payable to Blackball Media Ltd to Car Dealer, Endeavour Quay, Mumby Road, Gosport, Hants PO12 1AH. Your details will appear in the next issue.

CarDealerMag.co.uk | 71

give yourself a head start…

On average it usually takes around 10 seconds for someone to make a first impression…

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Dynomec Ltd · Unit 5 · School Street · The Potteries · Castleford · West Yorkshire · WF10 1NZ

08450 212123

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AS USED

BY THE AA & RAC

Putting your pieces in place

data fiLe.

Build empathy and understanding into your sales process

A

t the tender age of 18, during the summer months of a degree course I was taking, I encountered one of the biggest challenges I’ve faced in my life. I did some temporary work at a foundry in South Wales where my dad headed up the accounts team.

Fortunately for me, my spell of early mornings combined with heavy-duty manual work only lasted a few weeks and I returned to student life. Unfortunately for the workers, and the local community, the plant closed in May 2004 because sales of the castings it produced had fallen significantly over a period of several years.

I received an email last week from my dad with a picture attached and, to my amazement, what was once a 200-year-old production business is now a two-year-old supermarket, covering 80,000 square feet, not forgetting the petrol station!

Tesco, Britain’s biggest retailer, has prospered through excellent sales combined with impressive overall profits.

However, more recently, ‘flat’ sales have caused share prices to drop and billions to be wiped off the company’s value.

Not surprisingly, these figures have not gone unnoticed.

Decreases in sales (particularly those from the festive season and early part of the year) continue to make headlines with major companies reporting percentage decreases or even worse, job losses.

The need to maintain sales and, where possible, grow them in 2012 is more paramount than ever before.

What is also important however, is the method by which this is achieved with particular focus on how a customer feels when they are travelling through your sales process.

Value for money, needing a product or service as

Jonathan

Such TIME IS MONEY

opposed to wanting it, a cautious or sceptical outlook towards the future, wanting to make the best possible decision, all need to be thought about when considering things from the customer’s perspective, as they will be considering them.

On a recent visit to a main franchise dealer, to look at purchasing a car for my wife, the salesperson made it quite clear that the sale was the primary objective to him with no signal given to me that care was being given to our feelings or situation.

I assume that following a brief needs analysis, test drive, and quick negotiation of the deal that the numerous

‘No signal was given to me that care was being given to our feelings or situation.’ closing techniques he attempted were designed to get us to go ahead with the deal there and then.

Had we not felt pressurised to make a quick decision, and the dealer had investigated what was holding us back from saying yes, maybe our visit would have converted into a sale.

Have a good look at your sales process as you strive to maintain and increase sales in 2012. Build in empathy and understanding so that a customer feels appreciated and fully in control of any decision to be made.

As the old saying goes, ‘you can lead a horse to water, but you can’t force it to drink’.

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 74 | CarDealerMag.co.uk

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