Geneva uncovered
Issue 49 | April 2012 | CarDealerMag.co.uk | ÂŁ3.50
15 car industry bosses tell us why the future has never looked brighter Range Rover Evoque Cabrio
Ford Fiesta ST
Ferrari F12 Berlinetta
Why new outlander is key
Honda: Excitement is back
DRIVEN Skoda citigo
Jaguar XF Shooting Brake
Kia Cee’d
Dacias to be sold online?
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IGNITION.
Editorial Director James Baggott james@blackballmedia.co.uk Twitter: @CarDealerEd STAFF WRITER James Batchelor james.batchelor@blackballmedia.co.uk Twitter: @jrrbatchelor Sub Editor Dave Brown dave@blackballmedia.co.uk Twitter: @CarDealerDave ADVERTISING Manager Duncan Chappell duncan@blackballmedia.co.uk Twitter: @CarDealerAds Advertising EXECUTIVE Jade Simmonds jade@blackballmedia.co.uk Twitter: @CarDealerJade Car Dealer Club sales Executive Natasha Smith natasha@blackballmedia.co.uk Twitter: @CarDealerTash
Contributors Mike Jones, Big Mike, Alex Goy, James Litton, Tim Naylor, Tim Smith, Martin Hill, Tim Heavisides and Jonathan Such
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shows. We hacks Welcome. MOTOR love them and hate them
in equal measure. As car nuts, there’s nothing better than seeing the latest models displayed under the bright lights of a sweaty exhibition hall. And as many of the top brass I spoke to at the show pointed out, it’s new products that drive sales in this business. New metal from Ferrari, Lamborghini and a hideous Chelsea tractor from Bentley were always going to grab the headlines, but I spent my time taking in the volume sellers and chatting to the key car executives behind them. As nice as the new F12 is to look at and as staggering as the numbers may be, what really drives the motor trade are volume sellers like the Ford B Max, Vauxhall Mokka and Kia Cee’d. Press day at the Geneva Motor Show for me consisted of no fewer than 14 interviews. I spoke to nine UK car manufacturer MDs, including an exclusive first interview with the new director of Audi UK. There’s simply no other time I’d manage to chat to that many car firm bosses in one day, so I decided to make the most of it. What was fascinating was the fact many were singing the same tune – car orders are on the rise and the March order bank is looking strong. There was a lot of positivity around and that wasn’t only focussed around the new car launches. I also got the chance to speak to some real big cheeses such as the bosses of Peugeot and Citroen. OK, so much of what they said was flowery emotional stuff about the brand, but both knew the important role dealers play in shifting their stock. I also chatted to European directors from Kia and Mazda, both of whom told me some very interesting news about their forthcoming products. Our
comprehensive Geneva show coverage starts on p28-29 and continues on p42-51. My fingers are still hurting from the tapping… DEFENSIVE At the end of press day, I was invited to a small gathering of UK media by Renault group marketing director Stephen Norman. The Brit is one of the most outspoken and refreshingly honest executives I’ve ever had the pleasure of chatting to. There was no PR chaff, just straight-talking facts. However, during a discussion about the idea of selling Dacia models online instead of just through dealers, I was forced to stand up for the motor trade as hacks from Top Gear Magazine and What Car? gave it a kicking. The Top Gear writer was especially scathing. It staggers me to think that influential magazines like these still have such a negative impression of the motor trade. They still think many dealers are out to stitch buyers up. I obviously tried to put them right. My argument was that if customers are buying cars online, they won’t have the chance to benefit from the expertise members of our trade have to offer. While upsales are often frowned upon by the consumer media, many offerings such as GAP insurance offer huge benefits to buyers – and if they don’t get the chance to visit a dealer, how will they ever be offered it? Time will tell if Renault decide to sell Dacias online in the UK, but I for one have my concerns if they do. Enjoy the issue.
James Baggott, Editor
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CarDealerMag.co.uk | 03
THE TESTS
Diamondbrite vs Untreated vs Autoglym Lifeshine vs Glasscoat Between January 2011 and January 2012 Diamondbrite was tested against untreated metal panels and panels treated with Autoglym Lifeshine and Glasscoat. Two parameters were monitored, specular gloss and the height of the water bead on the surface. Each sealant was applied to six test panels, three painted black and three painted red. The panels were sheet steel approximately 300mm x 300mm x 1.5mm which had been painted by a car body paint specialist. The specular gloss of a paint film can be measured using a glossmeter which consists of a light source which directs a parallel beam of light on to a surface under test at an angle of 60 degrees.
®
Specular Gloss Test
Water Bead Height Test
Glossiness of Black paint after 12 months
Black paint after 12 months 5
BEAD HEIGHT MM
4 3
59.83
2 1
72.77
59.93
61.17
SG score 59.93
SG score 61.17
AUTOGLYM LIFESHINE
GLASSCOAT
0
UNTREATED
DIAMONDBRITE
AUTOGLYM LIFESHINE
GLASSCOAT
SG score 59.83
SG score 72.77
UNTREATED
DIAMONDBRITE
BEST
BEST
ON TEST
ON TEST
Glossiness of Red paint after 12 months
Red paint after 12 months 5
BEAD HEIGHT MM
4 3
28.73
25.07
SG score 24.5
SG score 28.73
SG score 25.07
SG score 24.4
UNTREATED
DIAMONDBRITE
AUTOGLYM LIFESHINE
GLASSCOAT
24.5
2 1
24.4
0
UNTREATED
DIAMONDBRITE
AUTOGLYM LIFESHINE
GLASSCOAT
BEST ON TEST
The height of a water bead applied to the paint surface is a guide to the effectiveness of the paint protection. In the water bead height test Diamondbrite held up much better than the other products, all of which had fallen back to levels similar to the untreated panels.
BEST ON TEST
In the specular gloss test, at the end of the test period (12 months), Diamondbrite produced the best results for both the black and the red panels. They were much better than both Glasscoat and Lifeshine. Interestingly the levels for Gloss on the red panels were lower for Glasscoat than on untreated panels at the end of the test. So these results prove once and for all that Diamondbrite IS worth having and performs better than Lifeshine and Glasscoat.
Test carried out by Interteck Testing & Certification Ltd. A full copy of this report is available on request.
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18
INSIDE.
SAAB’S DARK DAYS But who’s to blame?
ISSUE 49 I APRIL 2012
dashboard
25
56
PRODRIVE EFFECT Burnishing the brand
09
Car Dealer Power
10
Around the World
17
The sorry state of Saab
18
That Was The Month
21
The Prodrive effect
25
Finance
26
Geneva stars
28
Big Mike
31
Car Dealer Club
32
forecourt
ADVERTISING Your online options
‘‘
There’s a chance we’ll lose dealers in 2012.
64
Grab a Lead Generation place
TRAINING
Get your people up to speed
Ford boss Mark Ovenden looks ahead
42
Renault Fluence
34
Skoda Citigo
36
Fiat Panda
38
Audi A4
39
Corsa VXR Nurburgring
40
Skoda Octavia vRS Estate
40
features 10-page Geneva special 911 for 2011 update
42-51 54
DATA FILE
28
SHOW STARS
Geneva’s top debuts
Top Tips: Staff training
64
Right Click
67
Net Gains
69
Auctions
70
Shares
71
The Statistics with Motors.co.uk
73
Suppliers Guide with Alex Goy
76
Trader Directory with James Litton 78
a month in A picture...
Covering motor shows usually means making a few sacrifices. There’s the odd bit of skin lost to blisters and putting up with foreign journalists’ weird moustaches to deal with. But hardest of all is finding a quiet place to work. Fortunately this year I didn’t need to battle the press room as I was a guest of Mitsubishi. That meant writing the 10,000-plus words for our Geneva special in a chalet in the foothills of Mont Blanc. It also gave me the chance to get the inside line on the firm’s sale of 11 dealers direct from the boss. Read it on p48.
Jobs
81
Time Is Money
82
CarDealerMag.co.uk | 05
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feedback. Your comments via email at james@blackballmedia.co.uk | From our website at CarDealerMag.co.uk | And from Twitter: Follow @CarDealerEd
Worst of recession over? Editor’s blog: Car industry points to an economy on the move
bit.ly/industrymove Yes, I can also report my own sales are well up on 2011 (although that was a record year for my profits anyway). My gross profits have comfortably exceeded £50,000 for each of the past two months and I hope to climb towards £100,000 in March. Bear in mind that is with absolutely £0 spent on marketing, and no money spent on car stocking etc. Power of the internet, eh? Usual story though – sales are crippled by not enough new car stock. I’ve simply stopped selling some cars like Evoques, as the cost of maintaining customers in my system for a whole year while the cars arrive exceeds the benefits of the sale. Need more cars to sell in a timely manner, please, manufacturers. I think Robert Forrester at Vertu (just 500m from my own office) and Daksh at Marshall are entirely correct. Economy is on the way up. Ling Valentine, via CarDealerMag.co.uk
Mazda CEO says next MX-5 may not be RWD
bit.ly/Mx5RWD I am in my 30s, have a splatter of grey hair and prefer the gentle chat of Ken Bruce to Chris Moyles shouting in my ear. I am, in fact getting old. Now, I can come to terms with most changes in life. The fact that it costs over £3 for a take-away coffee, that footballers get paid up to £150,000 a week, pop stars wear dresses made of meat or that it is now possible to speak to your mobile phone and it will tell you what you are doing today – how the hell does it do that? Anyway, as I said, I am getting old, but I still have blood pumping through these veins. So, when I read that the icon that is the MX-5 might
twitter comments
Internet goes down with a bad case of Geneva fever... There was much for Twitter to get excited about at Geneva – both in terms of good and bad cars – and it would seem Porsche’s all-new (it really is new, honest) Boxster was the favourite. For a round-up of the show’s stars turn to pages 28 and 29, or flick straight to p.42 for our 10-page Geneva special. Ruf RT35 (individual perfection), new Porsche Boxster (looks great, should go well too), Morgan Aero Coupe (cool). End of. Via @stuart917 Volkswagen Up, Skoda Citigo, Seat Mi, Jaguar XF Sportbrake, Peugeot 208, Mazda Takeri, Weismann, Lexus LF LC, Toyota GT 86, Opel
be front wheel drive next time around, has shaken me up. What on earth will compel me to buy one now? Would it be deemed as dangerous? Against health and safety? Come on Mazda, don’t take away one of the last pure motoring highlights! If you have to change it to keep ‘the rest of the world happy’ or to keep up to date, just do what the rest of them do – call it the iMX-5. Sorted. Dave White, via CarDealerMag.co.uk
Audi’s profits soar £60m
bit.ly/Audiprofits Usually when I read about a company or person doing really well in a tough time, I think “what on
Mokka, Ford B-Max (sliding door conduit aside), Renault Zoe, Fiat Panda, Opel electric bike. Via @WalsheDav My favourites: Porsche Boxster, Volvo V40, Peugeot 208’s interior, Infiniti Emerg-E. Geneva fails: Mercedes-Benz A-Class, Bentley turd (EXP 9 F) – Bertone Nuccio. Via @JoeSimpson
earth are they doing so different to everyone else?” How has Audi done so well? It’s simple – they are good at what they do! They have a range that covers all areas, people from all walks of life can own one and they are great cars too. The reason why I am not annoyed to read about their success is that it is a clear message to other manufacturers and dealers. It’s not all bad you know! I am a dealer that has had great success over the last 3 years. How? I stick to what I know, use the right companies for my services, embrace new technology and make sure I am running with the right stock. If you run a dealership like Audi would, you will be fine. Again – it’s not all bad! Gemma Waterman, via CarDealerMag.co.uk
MY CONFESSION
The role play that ended in tears I WAS having a very bad week at my VW garage, and the feelings of ‘I wish I’d done better at school and got a real job came thick and fast as the boss gathered us round the new Golf for a briefing. Seriously, how am I supposed to get wet about a car that is the same as the last one? ‘So as you can see, these are the new lights, they continue the theme of the new range.’ he said. Blah, blah, blah... After a while, with my head in my hands looking at the brochure for the Mark 6 Golf, I heard a voice say, ‘Can you tell me more about the new Golf, please?’ Now my boss loves a role play, but I don’t. So as
soon as I heard the man’s voice, I lost it. I jumped up out of my seat and stomped over to the car in the showroom. ‘Well, as you can see, it looks exactly the f***ing same as the last one, here are the lights, it needs them so you can see at night. ‘It’s got wheels look, so it can move. A roof so you don’t get wet when it rains. Doors so you can get in and out. It’s made of really hard stuff like metal (as I kicked the sill) – that means it will last longer than ones made out of cheese...’ By now my voice had risen to shouting, and my face was a bit red.
‘You put petrol in this hole so you can make it go. You can even drive it all the way to the edge of a cliff and sit there thinking where did my life go so f***ing wrong!!?” Out of breath from my somewhat aggressive review of the car, I turned to look at my boss... only it wasn’t my boss who had asked me, it was a man stood with his wife and two young kids. Yeah, they were crying after seeing a 30-year-old man have a breakdown in the middle of the showroom… I left there soon after… CarDealerMag.co.uk | 07
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
DASHBOARD.
Jeep’s Compass falters bit.ly/CompassNCAP
Chris Mason of Motor Codes addresses delegates at our Profit Clinic in December
Grab a FREE place at Lead Generation Event Come along, hear our speakers and take home some brilliant ideas!
C
ar Dealer is holding a special Lead Generation event for dealers on May 18 – and you can bag a free place! We’re offering readers the chance to register for a free place at the event – sponsored by Trader Media Group’s Razsor – where you can hear some clever hints and tips to make the most of your leads. Ensuring you track, utilise and find every single sales lead in your dealership is vital when times are tough – and delegates will hear some brilliant ideas on how to do just that. Not only will you get the chance to hear from our exciting band of speakers, but there’s also a chance to win an iPad2 on the day in our free prize draw, enjoy a free buffet lunch and look around the amazing collection of cars at the Heritage Motor Museum, Gaydon, where the event will be based. The event starts at 9.30am with coffee, then delegates will hear from our speakers, which include headline sponsors Razsor, trade-to-trade specialists Autotrade-mail, search giants Google, MediaHawk and C It Now. Once the presentations are over and the
great ideas absorbed, the iPad draw will be made, then lunch will be served and delegates will be free to chat to the speakers further. We expect the event to wrap up around 2pm and you’ll be free to spend the afternoon exploring the museum. Also attending the event will be former Inchcape marketing director Allen Scott who will be explaining how lead generation helped his former dealer group during his reign. His expertise in this sector will be extremely insightful. The event follows Car Dealer’s successful Profit Clinic, which was held in December, and was attended by more than 100 dealers, one of whom was Darren Williams, MD of Grants Seat who said he gained a lot by attending. ‘If the Profit Clinic was anything to go by, this Lead Generation event will be very worthwhile for anyone attending,’ he said. Registration to the event is open now. To book a delegate’s place, which is completely free of charge, simply email the editor at james@blackballmedia.co.uk – he will confirm that you’ve secured a place and joining instructions will be sent out nearer the time.
Opportunities for suppliers to get involved too There is a limited number of opportunities for suppliers to the motor trade to get involved in our Lead Generation event. We have two places left for speakers who wish to address our audience. There is also a number of options for suppliers to display in the exhibition
area of the event and add gifts of information to the goodie bags which will be handed out on the day. Get in touch with any member of the Car Dealer team on (023) 9252 2434 or email the editor at james@blackballmedia.co.uk to find out more details.
Heavisides
warranty wonders
A great contribution and a fantastic cause as well
B
y the time you read this, I hope that the Porsche the Car Dealer team are selling on in aid of the automotive industry charity BEN will have found a new home and will be proudly owned by a new keeper, having raised valuable funds for an extremely worthy cause at the same time. I’m sure you know that BEN does some sterling work for our industry and if you aren’t lucky enough to buy this particular Porsche you can make a donation online at ben.org.uk. The guys at Car Dealer have done a cracking job of getting from a standing start to a Porsche in just 15 months. They’ve pulled in favours and used the collective know-how of our industry but hats off to them – they’ve managed to bag one of Stuttgart’s finest in just 12 moves. For those who’ve been following the story, if it’s reinforced anything, it’s emphasised just how much hard work and dedication is involved in generating a profit by trading cars. They’ve experienced the lows as well as the highs of motor dealing but the result has been well worth it. For those of us lucky enough to work in the industry every day, it’s a great example of how we need to balance our activities between selling cars and promoting associated products to build a profitable business. Buying low and selling high sounds great in theory but it’s much harder to achieve in reality when buyers seem to expect the deal of the decade on every car you retail. As the market takes its time to get back on its feet, it’s more important than ever to support car sales with profitable upsell products on every vehicle retailed. I’m sure the Porsche’s new owner and BEN will both benefit hugely from their hard work and commitment. I know the team at Car Dealer don’t like to shout too loudly about their achievements but we should all applaud their efforts in getting to a great contribution for a fantastic cause. Update, page 54
‘The guys at Car Dealer have done a cracking job of getting from nothing to a Porsche in just 15 months.’
Who is Tim Heavisides?
Heavisides is CEO of Car Care Plan, the UK’s leading provider of motor warranty and GAP products. CarDealerMag.co.uk | 09
SURVEY.
Still plenty of time to fill in our survey... Our Car Dealer Power survey is back and dozens of you have already joined our quest to find the best car manufacturer to represent. We’ve even got bribes to get you to join in!
T
his year’s Car Dealer Power Awards survey has got off to a storming start! Dozens of you have already completed the form we published in last month’s magazine – and many have filled in the online version too. 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 of a 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. 10 | CarDealerMag.co.uk
THE BRIBES
Fill in the survey... and you could win!
Can Seat win again? 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...
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 is 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
Car Dealer Power in association with..
in association with G3 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: ............................................................. ...................................................................................... ...................................................................................... ......................................................................................
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.
CarDealerMag.co.uk | 11
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
DASHBOARD.
Chevy appoints manager bit.ly/Chevymanager
Mason
CRAcKING THE CODE
Using SEO to attract more customers to your website
S
earch engine optimisation. A term we hear with increasing frequency. What used to be ignored as the trickery of IT geeks – how to get our websites further up search-engine pages – is now top of the marketing agenda and for very clear reasons. At Motor Codes, we’ve seen traffic that arrives at motorcodes.co.uk from search engines rise massively – 72 per cent of visitors now get to us via Google. This is an increase of 100 per cent compared to two years ago. This suggests that it’s vital for all dealers to be looking, right now, at their marketing methods. We all know that pulling in the punters is about so much more than the ad in the local paper. We need to look beyond the traditional ‘fishing’ marketing method – the scattergun approach – and concentrate more on active, online customers so that we can be sure we’re fishing in a well-stocked pond! Thankfully, getting started with SEO is fairly straightforward and, for the Motor Codes subscribers out there, the good news is that your Motor Codes profile pages, your independent online advertising portals, are geared up to attract motorists in your area. I say ‘in your area’. Locally-focused marketing, albeit strange when considering the vast expanse of the web, is exactly how we’ve developed the web strategy at Motor Codes. Our postcode-driven Garage Finder is hugely effective at getting businesses to the front page of Google for location-based searching – certainly for those who’ve optimised their profile pages. Forget generic search terms such as ‘car service’ – far too much competition. Put yourself in the position of the customer. Their search is going to relate to their specific vehicle – Vauxhall service Norwich, for example. Try it and see. SEO is not about how to make websites look good. It’s about attracting customers. Over the next few issues of Car Dealer, I’m going to spell out exactly how you can make the most of your presence on our site and attract the floating motorists near you, boosting service and repair business without spending money and, hopefully, proving that basic SEO ain’t rocket science!
‘Pulling in the punters is about more than the ad in the local paper.’
Who is Chris Mason?
Mason is managing director at Motor Codes, the government-backed, self-regulatory body for the motor industry. 16 | CarDealerMag.co.uk
Troubled times for Seward (Wessex) as administrators arrive Sales of Vauxhalls and Chevrolets are continuing, however
D
ealer group Seward (Wessex) Limited has been placed into administration. Administrators Smith & Williamson were appointed on February 22 to the group that holds Vauxhall and Chevrolet dealerships in locations across Poole, Bournemouth, Christchurch and Blandford Forum as well as two Hyundai and one MG franchise. A statement, released to the press from Smith & Williamson, said: ‘The administrator is pleased to confirm that whilst Seward (Wessex) Limited is in administration, both Vauxhall Motors and Chevrolet UK have agreed to allow vehicle sales and servicing to continue while buyers for one or more parts of the business are identified.’ Seward (Wessex) will continue to sell
both new Vauxhall and Chevrolet cars and parts, buy and sell used cars and perform workshop services. ‘As with sales of vehicles by any other Vauxhall or Chevrolet dealer, the manufacturer will honour valid manufacturer warranties in the usual way,’ the statement added. A Chevrolet spokesman confirmed the statement of the administrators when we contacted them. Hyundai has confirmed its sites are not affected by the administration as has Seward Accident Repair Centres. Ian Clark, chairman of Seward Accident Repair Centres Ltd, said: ‘Although we share the same Seward name there are no other connections with Seward (Wessex) Ltd. ‘Seward Accident Repair Centres Ltd has its own contracts and relationships and is a totally independent organisation with its own financial arrangements and client base. ‘This administration will have no effect on the accident repair side of the business now or indeed in the future.’
Parts distribution and auto centre is closed RESTRUCTURING specialists at Seward (Wessex) Ltd decided to close a parts distribution and auto centre. Twelve people will be redeployed, with 26 redundancies, at Grange Road, Christchurch. It was stressed that the dealership at 20 Bailey Drive, Christchurch, three miles away, is not affected. Greg Palfrey, the joint administrator at Smith & Williamson, said: ‘We had no choice because the Grange Road site in Christchurch was not
economically viable.’ The Grange Road site is used for the storage of spare parts and vehicles. Customers who have been using the service and MOT facilities there will be redirected to Seward (Wessex) Ltd’s operational dealerships at 20 Bailey Drive, Christchurch, and 400 Poole Road, Branksome, Poole. Palfrey stressed that the dealership at 20 Bailey Drive, Christchurch, is running as normal and should not be confused with the Grange Road site.
dashboard.
Around the world
Saloons ‘fall out of favour’ bit.ly/SaloonsOutdated
CANADA
DEALERS in Canada say sales were up in February. Chevy, Buick, GMC and Cadillac dealers announced 14,258 deliveries, an increase of 16 per cent compared to February 2011, while BMW Group Canada reported its best figures ever in February with 2,181 sales – up 7.2 per cent.
Dealer news from somewhere other than here USA
DESPITE consumers facing rising fuel prices, dealers say car sales rose in February in the US. Total industry sales rose 15.7 per cent over February 2011 – the highest year-on-year rise since February 2008. American buyers are turning to more economical cars – and with the ‘Detroit Three’ starting produce such vehicles, their sales and profits are on the rise after years of watching their Asian rivals gain ground in the sector.
INDIA
AUDI sold more than 600 cars in India in February. The month’s performance marks a 33 per cent sales growth compared to the same month in 2011 – and such growth is imperative if the German marque wants to achieve its sales targets in the subcontinent. Audi has set its sights on selling 8,000 cars in India this year – 2,500 units more than they sold there last year.
CHINA
DEALERS of Chinese brands in the country are poised for growth now the Chinese government has removed German marques from its official cars list. The Chinese government spends roughly £8bn on official cars a year and has mostly opted for posh BMWs and Audis. But they have faced calls from the public to stick with Chinese-brand cars to stop a ‘them and us’ culture. Audi dealers are said not to have heard of the news yet – but the German manufacturer has announced it is not too concerned.
MALAYSIA
MALAYSIAN customers want more Rolls-Royces – but the British marque’s dealer there is struggling to meet demand. Rolls-Royce’s only dealer in the country reported record sales in 2011 – a performance that helped the British luxury firm post record total sales for 2011. Last year, Rolls-Royce’s sales were up 31 per cent, with sales in Asia Pacific up 47 per cent. Asia is now the number-one region for Roll-Royce sales.
CarDealerMag.co.uk| 17
DASHBOARD.
‘Saab’s not another Rover’ After the iconic Swedish firm suffered times of turmoil during 2011, Graeme Lambert asks whether its fortunes can be revived in 2012
P
inpointing just where it all went wrong for Saab is tricky. It’s easy to point the finger at Victor Muller, the Swedish government or even some of the decisions made in the brand’s early days. And of course there’s always GM, viewed by Saab enthusiasts as the automotive Beelzebub. The blame is often laid at GM’s door, and many observers would argue that’s justified. In 2009 the troubled American giant switched the lights off after a last-minute deal to sell the company to Koenigsegg fell through. Step forward ambitious Victor Muller, who walked in and flicked the switches back on, embarking on a plan to rejuvenate Saab and its product line-up. The new 9-5 was quickly launched in a bid to bring in some money, and 9-4X production started in America thanks to Saab’s old owner. Changes to the existing 9-3 saw it become the most powerful sub-120g/km car on sale, and even super-cautious fleet managers were flooding back to the brand. In March 2011, the UK enjoyed sales of nearly 1,800 cars (56 per cent up on March 2010) and things were looking up. But then, in April, Muller’s grand plan faltered and Saab ran out of money. Suppliers stopped delivering, the production line ground to a halt and no amount of brave faces could hide that Saab really was in trouble. A brief re-start brought a glimmer of hope seven weeks later, but since last May, no cars have been produced at the firm’s Trollhattan factory. Talks with the Chinese ranged from the provision of sizeable cash injections to full-scale takeovers before GM stepped forward at Saab’s 11th hour and announced it would co-operate with no-one. Not allowing its technology licences to be sold means that the 9-5 and 9-4X will never be built again, and the next generation 9-3 (originally slated for 2013) will never see the light of day. As Martin Lyons, assistant sales manager at Concept Saab, put it: ‘They (GM) have nailed Saab to the cross.’ But that hasn’t quashed interest in the firm, Youngman recently announcing a bid of more than £188m for the company, with plans to spend six times that on developing new models. It’s not the only interested party either, with numerous bidders including Mahindra and Mahindra as well as an un-named (inexplicably rumoured to be BMW) European automotive manufacturer. Time is running out though, with the thousands of Saab workers in Trollhattan scrabbling to find work elsewhere as the Government covers their pay packets. The town itself has found itself reeling from this economic downturn too, while of course the situation has 18 | CarDealerMag.co.uk
a knock-on effect for all those around the world who are involved with the brand. In the UK, Saab GB struggled on, believing the firm would make it through the events as it had before, before voluntarily filing for administration on the November 19, 2011. Its flagship Saab City dealerships were closed, staff were lost and the near 800 new and used cars it had on its inventory seized by main creditor GMAC. Other dealers relying on the support of this central organisation, and whatever new cars were still filtering through from Sweden, suddenly began to disappear as customer confidence rapidly ebbed away. Within weeks a number of the UK’s main sites closed their doors, and with it Saab lost
‘‘
a huge amount of expertise and the reputation that its dealers and dedicated staff had worked so hard to build and maintain. But with 188,000 Saabs on UK roads the story simply couldn’t end there – and on December 30, an entirely new company was formed. Saab Parts UK Ltd has been set up with the specific intention of keeping cars on the road, and keeping this once-proud brand alive. Owned wholly by Saab Automobile Parts AB, itself nationalised by the Swedish national debt office, it is subject to none of the restrictions enforced on its once parental company. MD of Saab Parts UK Ltd, Corin Richards, said: ‘It’s business as usual from an aftersales point of view. We’re keeping Saab owners totally reassured that they will be looked
Last year was a year of turmoil and this is a year of excitement.
Thurlow Nunn Vauxhall acquires two new sites bit.ly/ThurlowNunn
TOUGH CALL
The Saab man amazed by his customers’ loyalty
Owners of cars such as the Saab 9-3 can at least rely on a supply of parts in uncertain times for the company
after and continuing to be creative with new ideas and new offers.’ And the remaining dealers have been the backbone of this, as Corin added: ‘They are very entrepreneurial. The brand hasn’t been mainstream. It’s had a quirkiness factor associated with it for a number of years, but it’s a great business opportunity. All our customers are fantastically loyal, they are nice people to do business with and that’s actually been a pleasure for us and the dealer network.’ And so despite its right, as a new company, to walk away from previous agreements and warranty offerings the firm felt it was only correct to stand by its previous agreements. ‘We made a conscious decision that we would support our dealers as far as we can with the various programmes,’ said Alan Cowan, sales director for Saab Parts UK Ltd. And so the dealer network has been authorised to continue with
the 1,700 service plans already retailed and is also offering a competitive and individually tailored warranty package on all Saabs sold. Cowan continued: ‘We spent a considerable amount of time on this; it’s an honest package and is in the spirit of the Saab brand. Of the customers that have contacted us, 95 per cent of them have been more concerned about Saab not being here, rather than losing their original warranty. We’ve been hardened by that in all honesty, and that’s why we’ve introduced it.’
A YEAR OF EXCITEMENT
Richards believes that as long as Saab Parts UK Ltd and its network can maintain a ‘footprint of convenience’ it’ll all be OK. ‘Last year was a year of turmoil for us and this year is a year of excitement,’ he said. And with around 800 GMAC cars to be sold, the network is ideally placed to offer this service, maintaining a level of support and professionalism customers are used to.
AFTER Concept Saab in Cardiff closed down, assistant sales manager Martin Lyons decided to go it alone – continuing to offer previous customers a familiar face from whom to buy used Saab and non-Saab cars. Working for Saab for 37 unbroken years from the age of 17, it was a tough decision to make, but one he believes is right. ‘I needed to think about this financially, and support my family. If there was an option to go back with Saab in the future, I would be hesitant, but never say never.’ But although a handful of (usually larger) dealers have fallen, more have continued with their businesses. Their long-standing status in their community is helping them, as Jerry Peck, MD at Astley’s Saab, explains: ‘I am amazed at how loyal people have been. Most have been more concerned about our well-being than the loss of their warranties.’ With only a handful of new stock left to shift, Peck plans to continue with the parts side of the business while maintaining his reputation as the place to come for used Saabs. ‘This business will last for at least four to five years, I’m confident we can ride it out.’
Everyone at Saab Parts UK Ltd is confident the brand will survive, and Richards stressed: ‘The one thing this situation is not, is another Rover. They had tens of thousands of cars to shift at the end, and values were affected accordingly – we have less than 2,000 across the whole network.’ Cowan added: ‘We genuinely believe the brand will come back, in the interim we are custodians and we need to keep it alive in people’s minds.’ Will it survive in reality though? That’s an even tougher prediction than deciding where to point the finger. One thing’s for sure, those who currently drive a Saab will be able to continue doing so for some time yet. What’s not so clear is the brand’s long-term capabilities – but management, dealers and customers alike are confident. With any other firm Car Dealer would scoff at their misguided belief, but with Saab anything really does seem possible and those lights are still on. Just. [CD] CarDealerMag.co.uk | 19
DASHBOARD.
That Was The Week – our roundups are posted online on Fridays CarDealerMagazine.co.uk
The month, digested We keep an eye on the motoring must-knows so you don’t have to. Here’s what’s been happening in the auto industry this month
FEBRUARY 13-17 AUDI revealed its all-new RS model – the RS4 Avant. The 4.2-litre machine delivers 448bhp and gets to 60mph in 4.5 seconds. Pricing is yet to be finalised. Nissan reported a 174 per cent increase in sales of its LCV range in 2011 compared with 2010. UK customers could begin placing orders for the new 6.2-litre, 430bhp Chevy Camaro coupe for £34,995 or £39,995 for the soft-top convertible model. January sales for Skoda worldwide rose 10.2 per cent to 75,400 vehicles, compared to the same month last year. It was the best January figure in Skoda’s 117-year corporate history. Citroen recruited a new partner, Richard Sanders Ltd, to operate sales, service and parts contracts in Northampton. Mini has opened a pop-up shop – Westfield Stratford City – to showcase its Coupe and Countryman models. It’ll be open for a year.
Clockwise: Ashley Andrew; Vauxhall Ampera; Kia training centre; Audi RS4
FEBRUARY 20-24 RENAULT put a price on its new Renaultsport Megane 265 range: The Cup will retail at £24,825 and the 265 at £26,025 when it arrives in April. Vauxhall introduced a fixed pricing structure on consumable car parts through its MasterFit programme. The government revealed the first vans eligible for the Plug-In Car Van Grant. They include the Ford Connect Electric, Mercedes Vito E-Cell, and the Renault Kangoo ZE. Convertibles, the BMW 6 Series, and late-plate Bentleys were the hottest cars in the used car market in February, said Glass’s. HPI announced the sad passing of its industry relations director, Alan Bishop. Spanish marque Seat appointed ex-Rolls-Royce man Ashley Andrew as head of operations in the UK. Mercedes will launch its high-performance version of its new SL later this summer. Along with more power, the new SL 63 AMG will be 30 per cent more fuel-efficient than its predecessor.
FEBRUARY 27-MARCH 2 SUBARU gave its Legacy a refresh – it now features a more efficient Boxer diesel engine, uprated sixspeed gearbox and retuned suspension. Soaring depreciation levels of a range of luxury vehicles led to a spike in finance deals, said Bridford. GM and Peugeot Citroen have created ‘a longterm and strategic alliance’ which will see, most notably, vehicle platform and component sharing.
SEWARD (WESSEX)
Story of the month DEALER group Seward (Wessex) Limited was placed in administration. The group held Vauxhall and Chevrolet dealerships in locations across Poole, Bournemouth, Christchurch and Blandford Forum as well as two Hyundai and one MG franchise – but the Hyundai dealerships were ‘unaffected’ said a Hyundai spokesperson. A parts centre in Grange Road, Christchurch, also closed resulting in twelve people being redeployed and 26 made redundant. Full story, p16 Chevrolet UK announced it is taking on direct responsibility for selling Chevy cars and parts in Ireland. Audi announced its operating profits soared 60 per cent to 5.3bn euros in 2011 – its best ever figure in more than 100 years. Nissan introduced fixed-priced servicing to its network meaning their customers receive dealership standards of work, at independent garage prices. Services cost from £109. Only 500 coupe and cabriolet versions of the BMW M3 Limited Edition 500 will be arriving to the UK in March. Prices start from £55,690.
MARCH 5-9 MITUSBISHI Motors UK announced the Japanese business VT Holdings bought the Colt Car Retail Group – the deal invloves 11 Mitsubishi dealerships. The number of mobile unique users on Autotrader.co.uk was up 150 per cent in January compared to the same month last year. BCA’s latest Pulse report showed that average used car values increased in February, climbing 3.7 per cent month-on-month. General Motors’ eco-pair – the Vauxhall Ampera and Chevrolet Volt – won the ‘Car of the Year’ award. The panel of judges gave the title to the Ampera and Volt ahead of the Volkswagen W Up and Ford Focus. New car registrations fell 2.5 per cent in February, the latest figures from the SMMT revealed. (p.74) Subaru said it was enjoying a great start to 2012 with sales up 86.6 per cent during February when compared with 2011. Kia opened a training centre in Ruddington near Nottingham which comprises four workshops, six technical training rooms, a non-technical training room and a replica Kia showroom. The 17,500 sq ft facility is the first Kia-dedicated centre in the UK to provide both technical and non-technical training courses. 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.
DASHBOARD.
The Prodrive effect
What DO car buyers want? If anyone knows, dealers do, and there’s a great way they can put this knowledge to good use. Dave Brown reports
H
ave you ever looked at the cars in your showroom, and thought they were, well, just a little bit dull? Of course, we all know that the major manufacturers are making great strides forward in terms of technology and efficiency, but news of a 10 per cent reduction in CO2 emissions doesn’t exactly set the pulse racing, does it? It’s amazing what an injection of excitement could do for your brand… and that’s where Prodrive might be able to help. Prodrive is one of the world’s leading motorsport and automotive technology businesses, employing 700 people in the UK, India, China and Australia. The company, formed in 1984, works with vehicle manufacturers and their suppliers to help them create cars consumers want. But there is more to it than that… Prodrive can add that spark of interest to your brand, creating a buzz and getting people talking. A vehicle with a Prodrive-engineered twist might not actually be practical or affordable for the average buyer – but it grabs the attention. Although not a Prodrive project, perhaps the best example of this approach recently is the Juke-R, Nissan’s GT-R powered concept crossover. The car, dubbed ‘Jukezilla’, has been trending on Twitter and finding friends on Facebook bigtime as a huge number of people take an interest in its exploits. And some of that interest is bound to have translated into showroom inquiries about the Juke in general, and maybe other Nissans. Prodrive is probably best known for its Subaru connections, but has worked with manufacturers such as Alfa Romeo and Mazda too. Vehicles like the Alfa Romeo Brera S and the Mazda RX-8 PZ, both engineered by Prodrive, can help to burnish their respective brands, extend the appeal of a model range and solve overstocking or end-of-life issues. In addition, the company can help provide a model that appeals more specifically to buyers in a target country or segment… and crucially, increase dealer footfall and therefore sales. Vehicles are typically engineered to be very tactile, delivering a bespoke feel and driving experience. This can be emphasised through special interior and exterior styling, a range of high-margin personalisation options and possibly through use of the Prodrive brand. That all sounds great, but do dealers really have the power to press their importer or manufacturer to offer such options? Roland Cherry, pictured, commercial director at Prodrive,
MAZDA RX8 PZ
MAZDA and Prodrive worked together on this car, which was created with outstanding dynamics tailored to British driving conditions. Just 800 of the fully-homologated vehicles were created for the UK market. The car featured an upgraded chassis package including springs and dampers and unique 18inch lightweight alloy wheels. With a unique front grille and rear spoiler, believes they are in a position to do just that. He told Car Dealer: ‘Dealers are always looking for something that can give them a bit of oneupmanship. The problem for them is that they are very much at the end of the supply chain and may feel that they cannot influence what they are given to sell. ‘But if dealers can work together and agree amongst themselves what would be an interesting derivative, they can go to the importer or manufacturer and put the point across. ‘The lesson for dealers is to think creatively about what can be done and feed that back to the manufacturer. They are at the coalface and are talking to real customers all day. They are ideally placed to spot a gap in the market.’ If Prodrive get involved in enhancing the cars you sell, you know they’ll be in good hands. The company has substantial experience working closely with in-house engineering teams and has good contacts across the industry. They also know what works well on UK roads – and of course, they have an
the car went from concept to production in just nine months with modifications being made at the Prodrive-managed conversion centre at Rotterdam. The benefits for Mazda? Well, the range appeal was extended, the sporting credentials of the brand were enhanced and extensive coverage in the press and motoring mags led to increased interest in Mazda generally. impressive track record, having worked with a number of major vehicle manufacturers. Subaru for instance reaped the benefits when Prodrive created the RB320, a limited edition of 320 vehicles to commemorate WRC champion Richard Burns. The driver, who won the World Rally Championship in 2001, tragically died at the age of 34 after a long illness, and on the fourth anniversary of his title win. The cars were assembled at Subaru’s UK import centre and featured a Prodrive-developed suspension, unique anthracite 18-inch GT1 alloy wheels and a front chrome mesh grille. They attracted plenty of attention and Subaru dealers experienced a noticeable increase in footfall as a result. Cherry said: ‘As the saying goes, win on Sunday, sell on Monday. ‘However, you don’t have to win all the time, you just have to compete with credibility. UK buyers are very keen on sports cars – the GTi segment has done well here. OEMs might not necessarily get that or see that as necessary. ‘This is where dealers have a role to play so they and their manufacturer reap the rewards.’ [CD] CarDealerMag.co.uk | 25
FINANCE. MAZDA
Navigation upgrade TO WELCOME its first SKYACTIV technology vehicle to the UK, Mazda is offering retail customers of the all-new Mazda CX-5 compact SUV a free upgrade to the Navigation version of their selected model. In addition, a low-rate, 5.9 per cent APR finance package, and three years’ complimentary European roadside assistance are on offer. The 5.9 per cent APR representative finance package is available to customers purchasing this new model on a PCP or conditional sale, over a period of 12, 24 or 36 months.
VOLKSWAGEN
Customers’ van options VOLKSWAGEN Commercial Vehicle Finance is allowing customers to slip into a VW van from as little £199 a month (plus VAT), and is offering hire purchase from 3.99 per cent with free servicing for three years or 30,000 miles. In addition, contract hire and finance lease rates for vans range from £199 a month (plus VAT) for a Caddy to £309 (plus VAT) for a Crafter, or for people carriers from £319 a month (plus VAT) for the Transporter shuttle.
Car finance applications up as buyers hunt for bargains Dealers can boost sales with ‘instant decision’ facilities on their websites
N
ew research from creditplus.co.uk reveals car finance applications have risen by nearly 40 per cent over the last two years as cash-strapped motorists look for lower interest loans and lower monthly payments for their next car. The number of car loans accepted has increased by 58 per cent year-onyear, partly helped by the fact that a variety of lenders are providing finance for prime and sub-prime consumers. The average loan value has also increased over the last 12 months by almost 10 per cent to £7,714. While London and Birmingham provide the highest number of car-finance applicants in the UK, Glasgow closely follows them for the first time, replacing Manchester. Recent research also shows that almost one in 10 motorists plans to
‘‘
Cash-conscious motorists are looking at ways to save money finance their next car with a dealer loan or a car finance loan and only 10 per cent of consumers are delaying buying a car. Shaun Armstrong, managing director of creditplus.co.uk, said: ‘Motorists are looking at ways to save money on their motoring costs and we have seen a growth in demand for asset-backed finance, which enables motorists to leave their cash in the bank and secure
The greatest growth is in online car finance applications.
a low-interest loan and low monthly payments. ‘While the Finance & Leasing Association’s latest figures show that motor finance provided through dealers was up by 10 per cent on November 2011 year-on-year, the greatest growth is online car finance applications. ‘Consumers are shopping around for the best package online and dealers can boost sales by having a car finance calculator and instant decision facility sitting on their websites. ‘If dealers aren’t able to provide information on finance solutions on their websites, they are in danger of losing the customer.’
Firm helps clients who have just minor blemishes on their files ACF Car Finance says the percentage of customers accepted for car-buying loans after being referred to them by motor dealers, finance companies and brokers has reached a ten-year high. The Chester-based company reports that in the last two years, approval rates for applications from people introduced via such intermediaries grew by eight per cent, accelerating the continuing upward trend. ACF Car Finance’s head of new
business, Lorna Rossi, says the main reason for the increase is the rising number of Britons now being declined by banks and mainstream lenders despite earning top salaries. ‘Although consumers are able to demonstrate an ability to afford loan repayments, they are often being refused borrowing because of minor blemishes on their credit files,’ said Rossi. Car dealers and other
intermediaries who refer declined customers to ACF Car Finance earn commissions which currently average £300 per sale. For any business interested in joining its introducer programme, a new guide has just been published. It outlines the full training provided to referrers, and explains how each receives the services of an account manager to help them operate the programme.
Valuing Service – Valuing You! First Response Finance is the first choice for the UK’s small to medium sized dealer market. 26 | CarDealerMag.co.uk
..in association with
DEAL FINDER Latest finance deals on coupes VW SCIROCCO VOLKSWAGEN has come to dominate this sector with its sleek Scirocco in recent years, but the coupe Golf is starting to age a little due to it being on the market for nearly four years – and the German firm now has a tempting offer on it. Available on the 1.4-litre TSI model, customers can hop into the Scirocco after a deposit of £4,780.92, a £1,000 VW deposit contribution and an acceptance fee of £125. After that, it’s 35 monthly payments of £235 at 4.9 per cent APR. If the customer wishes to keep the car, an optional final payment of £7,574 and an
option-to-purchase fee of £60 is required, bringing the total amount payable to £21,639.92. Customers are also entitled to up to three years or 30,000 miles servicing for the sum of £99.
Get growing with us! ow is 2012 turning out for you so far? I expect most of the people reading this will be happy with their YTD results and will be quietly looking forward to staying happy throughout the months ahead. There will of course be a few who will not want to believe that anyone is doing well because they are still waiting for the economy to pick up. Maybe they need to wake up to the fact that there is always business to be done no matter how good or bad the economic conditions are and they are probably being left behind by their closest competitors. In recent articles we have looked at how all great business leaders tend to have the ability to anticipate the future needs of their market and are willing to adapt their sales and marketing strategy to tap into any opportunity that would achieve incredible business growth. I’m pleased to say that I have enjoyed speaking with an increasing number of car dealers wanting to talk about what non-prime finance can do for their businesses. (Many have called me after reading these articles and I’d like to thank them for their kind comments.) This sizeable increase in interest confirms the growing demand from customers of both new and used car dealerships around the country. The volume of non-prime demand being experienced is set to grow enormously in 2012 and so too is the number of leading dealers looking to meet that demand. I would think that the vast majority of these dealers will call First Response for help and advice because we understand the unique needs of non-prime customers and we are well-placed to offer them an exceptional level of customer service. Please feel free to call us anytime.
‘Volume of non-prime demand is set to grow in 2012.’
cent APR. The optional final amount payable comes to £6,375, which brings the total amount payable by the customer to £20,458.
VOLVO C30 VOLVO’S C30 is the oldest car here – but that is no bad thing. There’s no argument in the looks department, as the C30 is contemporary piece of design – especially after its facelift a while back – and owners have come to appreciate the car’s well-built and typically Swedish interior. Volvo has placed a finance offer on the most desirable trim of them all. Available on the sporty 2.0-litre petrol R-Design – which comes with a body-kit, special interior and a tuned chassis – customers can begin their finance deal after a deposit of £3,499.50, followed by 36 monthly
time is money
H
HYUNDAI VELOSTER THIS is the car that’s on a mission to steal the Scirocco’s crown – and it aims to do it by boasting an extra door in its armoury. The Veloster tries to be more practical by being a 1+2 door car with an extra door for rear-seat entry. And even though the car has been launched, the Korean firm is already offering a finance deal to get buyers into the new model. Available on the 1.6-litre petrol model – which comes with 17-inch alloys, Bluetooth and climate control – buyers can put down a deposit of £3,679 followed by 36 monthly payments of £289 at 7.9 per
Meldrum
payments of £199 at 7.9 per cent APR. A balance of £6,460 is all that’s left after that period, meaning the total amount payable by the customer is £17,123.50.
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 | 27
DASHBOARD.
Geneva show’s top debuts James Batchelor rounds up the stars of Swiss event
F
errari undoubtedly stole the limelight at the 82nd Geneva Motor Show by revealing their most powerful road-going car ever. Called the F12 Berlinetta (no 1), it replaces the 599 Fiorano, and sports an astonishing 730bhp from its 6.3-litre V12. The 12-cylinder unit is part of a new generation of engines from the Italian firm, and, in the F12 Berlinetta at least, it will allow owners to get to 60mph in a around three seconds. Order books are now open for the 599replacement, but word has it the Italian firm has already taken more than 350 deposits for the car even before it made its debut at the Geneva show. Prices are mooted to be around the £250k mark, but with no confirmation yet, the price tag could be higher. 2 Keeping with the Italian flavour, Lamborghini unveiled the Aventador J at Geneva. Essentially it’s a one-off version of the muchrespected Aventador, with no roof and, bizarrely, no windscreen.
As it’s a one-off, it is unlikely to go into production, but does hint at what a convertible version of the Lambo supercar could look if the firm builds one. The J still uses the glorious 690bhp 6.5-litre V12 and four-wheel-drive system, and was sold at an undisclosed price. 3 The industry has known of Bentley’s yearnings to add an SUV to its luxury range for more than 10 years. Now the British marque has finally shown off what it has in mind in the EXP F 9 Concept. If such a car goes into production it should become Bentley’s best-selling model and continue a theme that began with the Continental GT in bringing increased revenue to the firm. It’s powered by Bentley’s 6.0-litre W12 petrol unit – but rumours are circulating that due to the poor reception the car received at Geneva, the company is already working on another SUV concept. 4 Another British firm was showing off an SUV concept at Geneva, and that was Range Rover. Since the Evoque’s prices were announced this time last year, the Evoque has easily become the most fashionable car and has had customers queuing out of the door for a slice of the action.
Range Rover is continuing interest in the car by revealing a drop-top version. It is a concept and whether it’ll be built or not hasn’t been confirmed – but it is predicted to get the nod. 5 Ever since the XF was launched in 2008, Jaguar has been promising more models would join the range. Four years on and an estate variant called the Sportbrake has debuted and looks set to make the modern Jaguar even more appealing to customers. Naturally it boasts more practicality than its saloon sibling but, in terms of rear space, both the BMW 5 Series and Mercedes E-Class have the Jag beaten. The Sportbrake will launch in November with 2.2-litre and a 3.0-litre diesel units. 6 In typical Porsche evolutionary standards, the new Boxster looks similar to the outgoing model – but this is an all-new model. It’s now built entirely out of aluminium, therefore saving weight, and a loss of 200cc improves fuel consumption. However, the Boxster’s new 2.7-litre heart is more powerful than the outgoing motor and will crack 60mph in five-and-a-half seconds. An S version is mooted to have 315bhp. Geneva special, pages 42-51
Are you worrying or hiding from Social Media and Online Reviews? Don’t! Call us and we’ll make them work for you! Used car customer satisfaction. Testimonials & Reviews. Share on social media, the web and in your showroom. Call Dale Woodley on 07968 223685 or email Dale@judgeservice.com www.judgeservice.com 28 | CarDealerMag.co.uk
Rawlinson Mitsubishi opens doors bit.ly/Mitsubishidealer
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The stars of the Geneva Motor Show
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We’re first for variety... ...so you’ll always be on track for the right car for your customer. Log on to mfldirect.co.uk to find seven of the latest plates from 39 manufacturers.
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CarDealerMag.co.uk | 29
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
big mike.
All Big Mike’s columns are on our website. Enjoy here bit.ly/bigmike
Moving the clocks forward doesn’t just happen in spring!
L
ike most of those involved in the previously cherished motor carriage relocation industry, I am rather looking forward to spring this year. It may have been one of the milder winters of the past few years, but for some reason I’ve also found it one of the darkest. Whether there’s a specific reason for that, like it always being cloudy on days with a full moon, or whether it’s just down to that pestilential man off the BBC News delivering yet more made-up guff dressed up as economic doom and gloom I don’t know, but I, for one, will be glad to see the back of the short days and long evenings. By the time you read this, the days will be getting that little bit longer – there’s an Equinox of some sort going on, but not being somebody who avoids personal hygiene, eats flowers and smokes weed, I don’t know whether its vernal, northward, southern or vegetable. What I do know is it means the clocks will go forward. And that, you might think, is the only time you’ll ever find a car dealer winding the clocks forward. But you’d be wrong. And to tell you why, I’ll wind the clock back – to 1992. Back then, a thirty-something car dealer who wishes to remain anonymous, so for the purposes of this column we’ll call him Michael Bigg, worked for a small independent sales site on the outskirts of Birmingham. His boss was rather matey with a couple of lads who worked up at the Rover plant in Longbridge, which often proved useful when we needed parts for stock vehicles that were small enough to fit in his lunchbox. Indeed, even now, it’s a standing joke around these parts that the designers changed the size of the clutch plate in a Metro in order that it might fit more neatly between two slices of bread. Anyway, I digress. One day in the summer of ’92, the aforementioned Mr Bigg turned up at work to find not just one, but seven G-plated Montegos jostling for position on the forecourt, all finished in delightful shades of beige, white or ready-faded red. Rover’s Cavalier-rival was a tricky enough beast to sell at the best of times (there’s a reason RAC patrols used to call the hard shoulder of the M6
Big
mike Our man on the inside spills the beans on the car business...
‘Montego Bay’, after all), but to find seven of them, all in solid colours in miserly ‘L’ spec lined up on the forecourt showed that Mr Bigg’s boss was clearly unsound of mind. On closer inspection, he noticed that each car, despite being at least two years old, still had plastic wrapping on the seat covers and those knobbly furry bits on the tyres that have all but disappeared from today’s modern, injection-moulded rubber. The highest mileage on any of them was 000,007 – mechanically, a Montego would easily beat the magic 100k providing you never left it out in the rain. (It was the soluble bodywork that was the Monte’s downfall, so the six-figure odometer was a tad optimistic.) The two-year-old motors arrived on the lot thanks to
‘He noticed that each car still had plastic wrapping on the seat covers...’ a tip-off from the boss’s mate at Rover – they were cars that had been pre-registered by the company to go on the employee car scheme, but had been so unpopular following the launch of the acceptably decent Rover 200 and 400 the same year that they hadn’t even been able to foist them off on the caretaker. Instead, matey boy had offered them out to the trade at a price too difficult to refuse. Either that, or he’d upgraded to a bloody big lunchbox. The problem was, who’d want to buy a two-year-old car that, quite clearly, had been sitting in a field and had never turned a wheel? And so it was that Michael Bigg was forced by his boss to clock not one, but seven cars that August. But instead of the traditional ‘haircut’, the trick was to advance to odometers to between seven and 12,000 miles – while for the next month or so he also had free transport home every night, providing he (in the words of his boss) ‘spanked the arse off it to put a bit of wear on the tyres’. And that, my friends, is a story I remember every time I put the clocks forward in my house. Enjoy the longer evenings!
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 | 31
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Q
In November 2011, we sold a car to a customer, for which payment was made in full by credit card over the telephone. The customer duly collected the car. Two weeks ago we were contacted by the credit card company and informed that the purchase was made on a stolen credit card, and we would have to reimburse the original holder of the card with the full payment. We immediately contacted the police so they could trace the car, which they have now done. However, the car has since been sold onto a local resident, who was oblivious to the transaction involving us. The vehicle is now being held by the police, who refuse to release it until it is decided who the legal owner is. The local resident is insisting the car is returned to them. Where do we stand? We have reimbursed the credit card company but have not had the car back so we can sell it on and recover our loss. RR, Devon Firstly, it is never advisable to take payment over the telephone as the element of PIN protection is removed. Where possible take a ‘holding deposit’ over the phone and take remaining payment in person. Also ask for photo identification to be provided when paying with a credit card. For the purposes of explaining your position, consumer A will be the person who purchased the vehicle from you with the stolen card and consumer B will be the person who purchased the vehicle from consumer A. From the viewpoint of you, the dealer, the question here is, did legal ownership of the
A
ADVICE
A right royal dilemma Q. I have been questioned by a member of staff about the Queen’s Diamond Jubilee, as there will be an additional bank holiday to mark the occasion. Where do we stand with regard to this holiday? Our contract states that employees are entitled to 28 days which includes ‘all usual bank and public holidays’. DJ, Liverpool A. As your contract makes specific reference to the ‘usual’ holidays, it is at your discretion whether you choose to treat the extra bank holiday as an additional day’s holiday or not. If you will be continuing to trade on that day, you can enforce it as a normal working day. You may, if you wish, provide an additional day in lieu vehicle ever pass to consumer A? In contract law, a contract is voidable where one party is in breach. In this case, consumer A breached the contract by not intending to pay for the vehicle by their own means. It can be argued that a valued contract of sale was never present between you and consumer A, and thus the vehicle title never passed from you to them. This would mean that you remain the legal owner of the vehicle and thus have full rights to its possession. However, there is another side to the coin. In the case of consumer B, the vehicle has been wrongfully sold on to them without consumer A having the title to sell it. In this instance the Tort
should your staff work on this day; however, it is up to you. Had your contracts stated ‘you are entitled to 20 days’ holiday plus all bank and public holidays’ you would have had to give your staff the additional day’s holiday as the contract would not be specific as to the number of holidays allowed. (Interference With Goods) Act 1977 comes into play, which regulates the unlawful interference of a person’s right to property and dictates how title to property can be decided. Thus if the vehicle is sold on by consumer A to an ‘innocent purchaser’, that person, in this case consumer B, will obtain full title to the vehicle and be able to claim the right to possession of it. The matter will need to be settled at court. It would be advisable for you to issue proceedings to your local county court, which we aid our members with, so you can stake your claim to the vehicle. Meanwhile, check that the police aren’t charging you for storing it.
Nine points already so what should he do? Q. We recently received a speeding fine under the company name. One of our company vehicles was clocked doing 37mph in a 30mph zone. We have identified the employee who was driving the vehicle at the time. He already has nine points on his licence. However, three of the points are due to come off next month. What are his options? WA, London A. Due to the low percentage your employee was over the speed limit, he may be offered the chance to take a speed-awareness course and
pay a fixed penalty of £60. However, it is at the discretion of the particular constabulary as to whether this is offered. It is not compulsory for them to offer it. If this is not offered, which it may not be as it is not your employee’s first offence, he may be issued with a fixed penalty fine and three points on his licence. As it is a fixed penalty offence, the points will be valid from the date of the incident and not the date of the conviction.
This creates an issue as your employee already has nine penalty points. Due to a rule called ‘totting up’, your employee will not be able to accept the points as this will take him to the maximum points limit (12). Should he accept the points, he may face a six-month driving ban. Your employee will thus need to apply for the matter to be heard at court and plead his circumstances in the hope that the court takes into consideration the fact that three points are to be removed from his licence in the near future.
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. To get advice like this (worth £199) join Car Dealer Club for just £34.99 per year. Sign up at CarDealerClub.com 32 | CarDealerMag.co.uk
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forecourt.
Andy Heiron
The head of Renault’s electric vehicle programme says that affordability is key as the French firm begins its assault on the growing market for EVs In a full year, how many Fluences are you expecting to sell? We don’t give out sales predictions, but I can say that it will be in the hundreds rather than the thousands. Our volume aspirations for 2013 will sit with Zoe because it is in the B-segment and we believe it to be the definitive EV. So, from the point of view of Fluence, it is our first electric car, it is a derived product, and the big question mark is whether there will be an appetite for a C-segment EV. Even for the Nissan Leaf which has been a success, consumers get to a point where it is a big leap of faith for them to treat a C-segment EV as their primary car. Our smaller EVs will be more popular because their usage pattern will be different – they will often be used as a second car. In contrast to the quirky Nissan Leaf, do you feel you’re at a disadvantage in having a ‘derived product’? I could put a counter argument to you here and say that I think for the number of people who are attracted to the look of the Leaf, the more conservative styling of the Fluence will still appeal. It is horses for courses – you are not making a big lifestyle statement by driving a Fluence, but if you are slightly more conservative and want value for money the car will appeal. Why is the Fluence noticeably cheaper than other EVs? It is due to Renault’s attitude of affordability for all. For the same price, customers will be able to have a similarly-specced Megane because we see it as an equivalent. A lot of people love to highlight that the price of the Fluence is ‘battery not included’, but £70 is also the price of a tank of fuel. Do you think you will be selling more Kangoo ZE vans than Fluences? Much more. I think with the Kangoo, the market has been in a period of suspended animation for the last three months while everyone has been waiting to see what the Government incentive will be. I am now expecting some large orders to come in – we won’t be talking thousands and thousands, but I am hoping to sell a four-figure amount this year.
‘‘
How many EV dealers do you now have? We have recently appointed our 22nd and each one has two 34 | CarDealerMag.co.uk
trained sales people – commonly a showroom person and a fleet person. We have done this because the Kangoo makes more sense as a B2B sale – and there are two workshop people. Even though dealership staff have been to Seville to get their training, we will be dealing with the most informed customer we’ve ever dealt with. Because of this, we will have to continue to bombard them with training and sales messages. This year we are inviting dealers to come on board with our EV programme – next year it will be a franchise standard. For our current 22 dealers, we only expect them to have a Fluence demonstrator, but for the dealers who are coming on board, we would like them to have a Kangoo demonstrator, and next year we would expect our dealers to be running a Kangoo and a Zoe demonstrator. For the Twizy, most of our dealers will have one as a demo because of its sexiness.
The goal is that by 2013 every dealer with us will be selling electric vehicles.
Will you be installing charging points at every dealer? Ultimately the goal is that by 2013 every dealer with us will be selling electric vehicles, and for us the definition of selling EVs is technical and sales knowledge, plus charging facilities. It may or may not be three 22Kw chargers that are expensive to install, but there may be a tailored charging point system so that every dealer can afford them.
Is the quirky Twizy a good example of the future direction of Renault EVs? I don’t think it’s just a Renault thing, but a market trend. Nano, or ultra-compact cars, will become more popular in the future and will join already established products by Tata, Gordon Murray and Smart. There is an increasing number of products coming into that sector because they are perfectly designed for the city, and consumers are beginning to realise that they don’t need to lug around five people and 300 litres of luggage. All we are doing is getting in at the start of something that is happening in the market, and we are doing it in a affordable way – and, more importantly, we are doing it all-electric. Your Alliance partner Nissan has been in the EV market for more than a year. Are you joining late or at the right time? I think we’re joining it at the right time. Eighteen months ago, before the Leaf was launched, someone asked me whether I would like to swap places with the guy at Nissan as, on the face of it, he was launching a very good-looking car nine months ahead of me launching a conventional electric van. Although I made a brave statement at the time saying ‘No, I would not’, deep down I probably did envy him. But in reality I would rather be where I am today as Nissan had to do a lot of trailblazing and had to deal with a lot of scepticism when they launched the Leaf. As the EV market gains momentum, I think 2012 is a good year to be joining it – 2014 is too late as the runners and riders will have started to establish themselves.
themanual CABIN
STYLING
Inside there’s no Nissan Leaf wizardry – it’s traditional Megane – but it’s logical and the build quality is good.
Fluence (Megane saloon) is no looker – in fact, it borders on being ugly.
POWERTRAIN
Renault Fluence
Renault are planning an onslaught on the EV market and this is the vehicle leading the charge. James Batchelor reports What is it? One year on from alliance partner Nissan and the launch of its Leaf, Renault now brings us its first electric car – and it’s a whole £8,500 cheaper than the Japanese firm’s offering. The Fluence is the first of Renault’s electric cars to be launched, joining the Kangoo ZE van, and is the most sensible of the lot due to it being based on a normal Fluence (a Megane saloon not for the UK).
What’s under the bonnet? The ‘engine’ bay contains a 95bhp electric motor, while the battery pack sits behind the rear seats; the range is 125 miles on a 10-hour charge. Unlike Nissan, the asking price does not include batteries – dealers will lease the batteries to customers on 12, 24, 36, 48, or 60-month contracts and prices will vary on mileage. A 36/48/60-month, 6,000-mile contract will cost £76 per month (inc. VAT) and rise to £153 per month (inc. VAT) for a 12-month/18,000-mile contract.
What’s the spec like?
What do the press think of it?
Customers can choose between two models. After deducting the £5k Government grant, buyers can slip into the Expression+ for £17,495, which comes with an alarm, hill start, cruise control, automatic dualzone air con, and TomTom that can navigate to charging points. The top-of-the-range Dynamique features 16-inch alloys, parking sensors, and a leather steering wheel and gearknob for £900 more.
Autocar were enthusiastic saying the Fluence ‘is a solid way of kicking off Renault’s commitment to an allelectric range of vehicles, and bodes well for the Twizy and Zoe’, while Auto Express said: ‘Those that do opt for a Fluence ZE will be rewarded with an electric car that comes with very few compromises. And unlike most other electric vehicles it doesn’t carry an astronomical price-tag.’
What’s it like to drive? The Fluence is nowhere near as interesting to drive as a Leaf, but it’s far more of a normal car compared to Peugeot’s iOn/Citroen C1/Mitsubishi iMiev. It boasts light steering, a comfortable ride, and bags of interior room. The 95bhp electric motor packs 226Nm of torque, and, because it’s an EV, that torque is always available meaning its 13.5 second dash to 60 always feels faster.
What do we think of it? It’s clear that Renault-Nissan have tapped into the EV market with both verve and common sense. The Fluence sits firmly with the latter and provides a relaxed attitude to EV motoring and one that’s free from the quirky flair shown by the Nissan Leaf. If this was Renault’s only EV, it would be a disappointment – but with the eccentric Twizy and Zoe on the way, the French firm may well have cracked it.
Customers will pay £17,495 just for the car – the batteries are leased. Contracts start at £76.
the knowledge Model: Renault Fluence ZE Dynamique Price: £20,324 (as tested, after Government grant) Engine: 70kW electric motor Power: 95bhp, 226Nm Max speed: 84mph 0-60mph: 13.5s Range: 115 miles Emissions: 0g/km Residual values (three years): tbc
target buyers:
Green-minded families who require space for five occupants.
the rivals:
Nissan Leaf, Peugeot iOn, Toyota Prius
Key Selling Points: 1. Feels like a normal car to drive 2. 115-mile range is classleading 3. Comes with Renault 4+ package
Deal Clincher: The cheapest, full-size electric car on the market. CarDealerMag.co.uk | 35
forecourt.
Robert Hazelwood Skoda UK’s brand director says his network of dealers is braced for years of growth – and that the firm can continue to do things a bit differently With new models on the way, are your dealers ready? We’ve been really consistent with our network. About three years ago we said to them they needed to start planning for future product and volume. We have been talking to them about a seven-car showroom – the range already has five cars, but Citigo and the Mission L concept will take that up to seven. We are telling our retailers to start preparing the ground now for increased capacity in their showrooms, in their workshops, and for their used cars. A couple of years ago, the average Skoda dealer would have had a £5m turnover – you are now going to be seeing £7m£10m businesses. How was 2011 for your dealers? It was fantastic. We had a record year in 2011 – not to mention a record year in 2010, and an unbelievable January 2012 – and a lot of this is due to the product getting better, but we have also been very consistent with the way we have developed the network. We have been a very blended network with our Volkswagen partners. We appointed 12 new dealers, and we had more than 20 major redevelopments take place. With the new Skoda badge, will dealerships be getting the new look? The new look for our dealerships is radically different to what dealers have at the moment. It is a very clean, modern look on the inside, and the outside will be just as clean and modern. We have a pilot dealership currently being developed in Leicester that shows off the new brand identity. The new logo shows off a very bold image of Skoda, but it still represents something that is very special to Skoda – and that is the human touch. We are working very hard on our dealerships and giving them car configurators, customer waiting areas and children’s areas. While our new look may well be very modern, bold and clean, we still want our dealers to have a close relationship with customers. With Skoda’s recent successes in mind, is there ever a danger of becoming complacent? During 2010, we spent six months working on a growth strategy. At that stage we had about 58,000 cars to be sold in the long-term plan, but with all of the new cars coming in new segments, we’ve built a very detailed business plan to get us to 2015 and to sell 78,000 cars. This 36 | CarDealerMag.co.uk
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is a plan that we call ‘Simply Grow’, and this has become more than a mantra. Everyone within the Skoda organisation and dealers knows what this is and it is a journey we are on. Therefore we are not complacent – we are self-critical and focussed on KPIs. There are no surprises within Skoda. Would you agree Skoda has turned a corner in terms of brand perception? The hardest thing within any business is changing brand perceptions. It is a journey Skoda is on and we are still not there, but it is fascinating to see how Skoda’s perception has changed. I have been with the brand for four years and I have seen the brand evolution over that period – Superb was fantastic; Yeti was fundamental. Great product is one thing, and having a great network is good – but every so often we need to challenge the status quo. That’s why we went to the Goodwood Festival of Speed for the first time last year because it is the place where motoring enthusiasts go; and if we were serious in wanting to change our perception, we had to be there – even if Goodwood is Audi’s ‘thing’. We were on TV with five campaigns, and we did about 60 major outdoor events last year. And of course we went to Bonneville Salt Flats and did 200mph in an Octavia.
The new look for dealers is radically different to what dealers have at the moment.
You say Goodwood is
Audi’s ‘thing’. Does that mean Skoda can now do things that other, higher-placed members of the VW Group can do? Yes, very much. It is great being a challenger brand but, as in any business, you get to a level where you become a mature business. Skoda and Skoda UK are not a mature businesses. We have got new cars going into new sectors, we’ve got new dealers – but we can continue to be a bit barmy, be a challenging brand, and do things a bit differently. What are your expectations for Citigo? We plan to sell 4,000 this year and 7-8,000 in a full year – and that would account for 11 per cent of our total volumes. And it will have the most comprehensive campaign I’ve seen since I’ve been with Skoda. We are currently showing our dealers our strategy with the car, and each dealer will have two demonstrators – one in the green launch colour, and another one in white wearing the optional sports package [which consists of body stripes, and 14, 15 or 16-inch alloys]. Do you think it will be a problem that customers will have to choose between the Citigo, the Mii or the Up? No I don’t – we have about eight Skoda/Seat dealers, and if you talk to every one of the dealer principals, they will say that when a customer enters the dealership they either turn left into one showroom or right into another. By the time they have made that decision, they have made their mind up about whether they are looking at a Skoda or a Seat.
themanual EQUIPMENT
LOOKS
Skoda promises that, from launch, the Citigo will offer value for money to the customer. So expect equipment to be spread evenly between the three trims.
The Citigo receives Skoda’s all-new badge and grille. Front-end was styled by the Bugatti Veyron’s designer.
DRIVING
Skoda Citigo This may be a VW Up with a different badge, but it’s also Skoda’s first full-production three-door car. James Batchelor reports. What is it? This is the car that makes up the final part of the Volkswagen Group’s onslaught on the A-segment – and could well be the best all-rounder. That’s because it sits between the bold VW Up and the more masculine Seat Mii, while it is rumoured to have prices comparable with the Spanishbadged sister car. Around 4,000 units will be sold this year – and between 60 and 70 per cent of UK sales will be of the five-door. It arrives in June.
What’s under the bonnet? There are two 1.0-litre three-cylinder engines; in 58 and 74bhp forms. Both are surprisingly high-geared requiring liberal use of the throttle to get moving, but while the 58bhp version is darty, the higher-powered version is a little more at home on the open road. Greentech technology can also be ordered.
What’s the spec like?
What do the press think of it?
Customers will be able to choose from three models – S, SE, and Elegance. At the time of writing, specifications had not been finalised – but we managed to try a European top-of-the-range model at the press launch which boasted heated front seats, parking sensors and a portable sat-nav system.
Autoblog UK said ‘as long as Skoda UK price the Citigo right, it might be just the pick of the [VW Group] three’, while Auto Express felt ‘it’s not as distinctive as its VW cousin’ but added it will come down to consumers’ preferences towards badges. MSN Cars remarked: ‘The bottom end of Skoda’s range had a city car-shaped hole in it for too long but the Citigo has filled it, and then some.’
What’s it like to drive? You won’t be surprised to hear it drives no differently to the Up and Mii. But that’s good as buyers will be treated to a car that feels grown-up and mature. The Citigo is a composed car in town but can be fun on twisty roads – no doubt helped by a grippy little chassis that resists understeer heroically. Visibility is good; so too is the steering – it’s well-weighted if lacking a little directness. The 74bhp is the best all-rounder.
What do we think of it? The Citigo is proof that manufacturers are taking the A-segment as seriously as ever, realising it’s the sector where consumers are spending their money. The Citigo may well be just a VW Up with a Skoda badge, but it works well. We can believe Skoda UK’s prediction that it will bring a new customer to the Czech marque’s dealerships.
To drive, the Citigo certainly feels like the previous-generation Polo – yes, it feels that grown up.
the knowledge Model: Skoda Citigo Price: Range from £7,500 (est) Engine: 1.0-litre, petrol Power: 58bhp, 95Nm Max speed: 99mph 0-60mph: 14.4s MPG (comb’d): 62.8 Emissions: 105g/km Residual values (three years): tbc
target buyers: Conquest female buyers with small families. Older couples and traditional Skoda buyers.
the rivals: Seat Mii, Ford Ka, Citroen C1.
Key Selling Points: 1. Feels bigger than it really is. 2. Five-star NCAP safety rating. 3. Quality materials used in the cabin.
Deal Clincher: Best in class for boot space and interior width CarDealerMag.co.uk | 37
forecourt. the knowledge Model: Fiat Panda Pop Price: £8,900 Engine: 1.2-litre, petrol Power: 69bhp, 102Nm Max speed: 102mph 0-60mph: 14.0s MPG (comb’d): 54.3 Emissions: 120g/km Residual values (three years): 35 per cent.
Thirty-two years on from the launch of the original Panda, here’s the third generation version. James Batchelor reports What is it?
What’s the spec like?
In a nutshell, an all-new version of Fiat’s much-loved supermini. Under the bigger, more sculpted body lies a revised version of the previousgeneration Panda platform, but in comes the 500’s TwinAir unit and a range of personalisation options. Think of the Panda as agricultural transport that can be blinged up if required. Fiat expects to sell 9,000 in a full year.
Customers can slip into the new Panda for £8,900. That’s for the entry-level Pop 1.2-litre which comes with 14-inch steel wheels, MP3 connectivity and electric front windows. Mid-spec Easy comes in at £9,550, and Lounge at £10,050. Prices top out at £12,250 for the Lounge 1.3litre MultiJet which boasts front fog lamps, 15-inch alloys and electricallyadjustable and heated mirrors.
Skoda Citigo, Ford Ka, Peugeot 107.
What’s under the bonnet?
What’s it like to drive?
Key Selling Points:
There are few surprises – except the addition of a brand-new normallyaspirated TwinAir variant that’s coming later this year – so there’s the perennial 69bhp 1.2-litre Fire unit, the 0.9-litre TwinAir Turbo from the 500, and a diesel variant in the form of the 1.3litre MultiJet 2 unit. The fashionable TwinAir Turbo may grab the headlines, but it’s the 1.2-litre that’s more in keeping with the Panda’s character.
The Panda may well have grown up a little with a better interior, but the previous generation’s charming driving qualities remain. Handling is predictable, and well-weighted steering makes for confident driving. The 1.2-litre is our favourite. It is noticeably cheaper than the TwinAir and just as economical. It also better suits the Panda’s personality. The diesel is a little too noisy.
target buyers: Small families who live in the city, will also appeal to young and old.
the rivals:
1. Good amount of space for occupants 2. Interior fit-and-finish is of a quality standard 3. Vast range of interior colour combinations
Deal Clincher: 99g/km CO2 TwinAir Turbo is road-tax and congestion charge free
INTERIOR
Fit and finish are better than ever – entry-level’s grey plastic dash is still appealing.
LOOKS
Boxy, goofy looks of the secondgeneration Panda have been softened to give a more cutesy image. 38 | CarDealerMag.co.uk
What do the press think of it? Auto Express was complimentary, saying: ‘As cars become increasingly complex, the Panda remains a refreshingly simple choice,’ while Autocar said: It’s certainly got all the appeal of the old Panda, and as such should prove one of the best options in the class.’ Car Magazine remarked: ‘It’s an absolute joy’, adding ‘city car customers have never had it so good.’
What do we think of it? With its cutesy curves, we were worried the new Panda would have lost its individuality and would have had too much of the 500-treatment. Luckily we were wrong as the new car continues where the old car left off – but it’s better made, as fun to drive, and gives other small city cars – such as the Skoda Citigo – a serious run for their money. It’s sure to prove a hit for dealers.
Fiat Panda
ENGINES
Familiar Fiat line-up of zesty 1.2-litre petrol and frugal 1.3-litre diesel – and now with fashionable TwinAir Turbo.
themanual TECHNOLOGY Wi-Fi hot spot option and Google Earth navigation mapping available.
WELL-MADE
Very high build and component quality consistent with all Audi models.
STYLING
Re-profiled bonnet and front bumper, plus reshaped radiator grille and headlamps give the A4 a fresh, new look.
Audi A4
the knowledge
Refreshed for 2012, it’s the most technologically-advanced and efficient Audi A4 yet. Dave Brown took one for a spin What is it?
What’s the spec like?
A complete refresh of Audi’s bestselling B-segment contender. With the brand flying high (operating profits soared 60 per cent to 5.3bn euros in 2011), the German marque is oozing confidence and offers potential purchasers a staggering 110 variants from which to choose (rising to 111 when the iconic RS4 makes a return later this year). Efficiency is very much the watchword with C02 emissions reduced by up to 21 per cent.
Good – it’s not too hard to see why more than five million A4s have been sold since 1995. Standard equipment includes three-zone climate control, cruise control, Bluetooth interface and light and rain sensors. Unique-inclass multitronic CVT transmission is optional on most front-wheel-drive versions and a seven-speed S tronic twin-clutch automatic optional on quattro versions. There’s a host of other hi-tech gadgets and gizmos too.
What’s under the bonnet?
What’s it like to drive?
Three petrol and six diesel engines, all turbocharged and featuring stop/start technology. The petrol range includes a powerful 1.8 TFSI lump which has been completely redesigned to include ground-breaking innovations in many areas including control of the valves and their lift, fuel injection and turbo-charging. But most of the engine changes are reserved for the TDI contingent, which includes units featuring four or six cylinders.
Enjoyable in many ways but perhaps just a little unforgiving on the bumpy roads of the UK after they’ve been ravaged by three months of frost and council grit. There’s no question we felt safe and sound inside and there’s no mistaking the high build quality. The driver information system will help buyers save energy as of course will Audi’s start-stop system. And there’s no shortage of choice when selecting a model from the range!
What do the press think of it? WhatCar.co.uk said: ‘The A4 is significantly cheaper than the BMW 3 Series. However, the BMW is quicker, cleaner and much more enjoyable to drive.’ AutoExpress said: ‘Our biggest complaint concerns ride comfort. To help the A4 TDIe cut through the air more efficiently, Audi has fitted it with some familiar sports suspension, which lowers the car by 20mm. The firm set-up isn’t very good at taking the sting out of ruts and bumps, especially at low speeds.’
What do we think of it? It’s hard not to be impressed by what Audi has achieved in recent years. As the company says, it has gone from being a ‘challenger brand’ to one of the big three German high-end marques. However, the A4 couldn’t really be called an exciting car to drive. Competent, assured, superblyengineered, of course. But does it set the pulse racing? Not really.
Model: Audi A4 Saloon 2.0 TDIe 136PS SE Price: £25,910, as tested. Range from: £23,625 Engine: 2.0-litre, diesel Power: 134bhp, 320Nm Max speed: 134mph 0-60: 9.1 secs MPG (comb’d): 65.7 mpg Emissions: 112g/km Residual values (three years): tbc
target buyers: Both private and fleet buyers, with company car drivers looking for tax breaks finding plenty to attract them.
the rivals: BMW 3 Series, Mercedes-Benz C-Class, Volvo S60.
Key Selling Points: 1. Highly competitive BiK with three models best in class. 2. Lowest CO2 emissions in class. 3. Distinctive new front end is both smart and stylish.
Deal Clincher: Price increase for new models of only £200. CarDealerMag.co.uk | 39
forecourt. the knowledge Model: Vauxhall Corsa VXR Nurburgring Price: £22,295 Engine: 1.6-litre, petrol Power: 202bhp, 280Nm Max speed: 143mph 0-60mph: 6.5s MPG (comb’d): 37.2 Emissions: 178g/km Residual values (three years): 33 per cent
target buyers: VXR fans and 30-somethings who can afford the running costs.
the rivals:
Renaultsport Clio 200 Cup, Mini Cooper S JCW, Citroen DS3R.
Key Selling Points:
1. Tuned at one of the world’s most fearsome tracks. 2. Impressive, grippy chassis. 3. Exclusive – only 250 units are coming here each year.
Deal Clincher: It’s the fastest Vaxuhall Corsa ever made.
themanual
Corsa VXR Nurburgring Vauxhall has made its lairy Corsa VXR even madder with a performance makeover. James Batchelor has driven it What is it? It’s the result of Vauxhall modifying the already-potent Corsa VXR with Bilstein springs, a 13bhp power-hike, adding a limited-slip diff, lowering the ride-height by 20mm at the front and 15mm at the rear, fitting Brembo brakes, and giving it a final development sign-off at the fearsome Nurburgring.
What’s under the bonnet?
What do the press think of it? The Daily Telegraph says ‘it’s something of a sensation’ while Autocar feels the car pulls off the £22k pricetag ‘with ease’. Auto Express reported: ‘A car with this name has to deliver – and the Corsa does’, and added that despite the £3,395 price hike over the standard VXR, ‘it is money well logos on the sill plates, centre console spent’. Autoblog UK said: ‘Exclusivity and handbrake lever. Recaro sports is assured for fast Vauxhall fans with seats are also fitted, and the car comes just 250 coming here per year.’ in red or green.
A breathed-on version of the ‘normal’ Corsa VXR’s 1.6-litre turbo. Power is What’s it like to now 202bhp thanks to a modified engine-management and turbocharger drive? The Nurburgring drives in a way system, and a new sports exhaust. That means 0-60mph comes up in 6.5 the original Corsa VXR should have done. It handles fantastically with seconds; top whack is 143mph. steering that’s almost too direct and What’s the spec like? a chassis that has bags of grip. It’s The Nurburgring weighs in at £22,295 almost on a par with the benchmark: and features a number of Nurburgring Renaultsport’s Clio 200.
What do we think?
Vaxuhall has finally nailed its Corsa VXR and now offers something that really does rival hot-hatches from Mini and Citroen. Normally, we would say dealers would be hard-pushed to justify to customers the £4k premium over a Clio 200 Cup. But with just 250 units coming to the UK, sales should be strong.
Skoda Octavia vRS Estate The Octavia vRS is a cult car for many owners and a cop car favourite. But can it still impress? James Batchelor reports What is it?
gearbox. It was a little too notchy and spoilt what was otherwise an impressive package.
The Octavia was the first Skoda to wear the now-familiar vRS badge, and is now known as the thinking man’s alternative to the VW Golf GTI. In estate form, it’s the most practical car in its class – and one of the cheapest.
What’s under the bonnet? There are just two engines available – Volkswagen’s 197bhp 2.0-litre turbocharged petrol and 168bhp 2.0-litre turbo diesel, and both are available in either six-speed manual or DSG variants.
What’s the spec like? This being the sportiest Octavia available, it’s packed full of kit. Inside, there’s dual-zone climate control, CD changer, Bluetooth and vRS sports seats, while on the outside the vRS gets a sports bodykit, 18-inch alloys, 40 | CarDealerMag.co.uk
What do the press think?
fog lamps, lowered suspension, LED day-running lights and projector headlamps.
What’s it like to drive? This is a good and fun car to drive. Due to its Golf origins, the Octavia vRS is direct and agile to steer but its ride is not compromised. Our test car was the diesel variant, which proved to be torquey, refined and impressively economical. Interior and boot space were exemplary – however, we did not like the six-speed manual
Autocar said buyers should certainly consider it, adding: ‘The vRS is still good value — as a wagon it has more space than a Citroen C5 Tourer — and offers a decent if not thrilling drive.’ What Car? concluded: ‘Pace aplenty, great handling plus a healthy dose of practicality – and all for a pocket-friendly price.’
What do we think of it? The Octavia vRS was one of the first Skodas to really change perceptions of the Czech marque. With good looks, impressive performance, and value-for-money qualities, the Octavia vRS is one of the most potent Skodas around.
the knowledge Model: Skoda Octavia vRS estate Price: £22,195 Engine: 2.0-litre, diesel Power: 168bhp, 350Nm Max speed: 140mph 0-60mph: 8.4s MPG (comb’d): 49.6 Emissions: 149g/km Residual values (three years): 35 per cent
target buyers:
Typical hot-hatch buyer who requires a little more space.
the rivals:
Volkswagen Golf GTD, Seat Leon FR+, Volvo V50 R-Design.
Key Selling Points: 1. Racy details but generally an understated yet stylish look. 2. Well-made and spacious interior; 605 litres of boot space. 3. Strong residual values.
Deal Clincher: Like-for-like, it’s noticeably cheaper than its rivals.
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Feature.
Some dealers at risk, admits Ford’s boss Ford of Britain MD Mark Ovenden says tough times may mean the marque loses dealers, but he won’t be forcing any out. James Baggott reports
Mark Ovenden, and clockwise, Fiesta ST, B-Max, Kuga
F
ord of Britain MD Mark Ovenden believes there’s a chance his brand may lose dealers in 2012. Despite being the top-selling manufacturer in the UK, he told Car Dealer that he wouldn’t be ‘telling tales’ when he said some of his dealers are finding things tough. ‘There’s a chance we’ll lose dealers in 2012,’ he said. ‘But we won’t be forcing them out. We’ll look at the sites that do become available and take a pragmatic approach as to whether to fill them again. ‘There is a huge difference between the best-performing dealers, who make five per cent return on sales, to those that make well below zero. ‘Clearly with the market so tough that will get more difficult. ‘Some have been making a loss for five years. It’s these that we are talking to and saying this year will be tough too, so if you haven’t
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been able to make a profit in the past, it’s really not going to happen now.’ Ford has around 500 dealers in the UK – the most of any manufacturer – but Ovenden insists that the marque’s volumes can support this. He certainly won’t be forcing closures, like Renault.
It’s like when a cricketer is batting well, you don’t mention it because you fear the next ball will see him fail.
42 | CarDealerMag.co.uk
B-MAX
FORD unveiled the B-Max at the show, a replacement for the Fusion. With sliding doors and an innovative interior he believes it will lead to incremental sales for his network. ‘It will be popular with Motability customers, but I’m convinced there is a very good opportunity for retail sales too,’ he explained. ‘It will arrive in September and we’ll be doing all we can to market the car to ensure we can get the most out of it.’ Ovenden said he was also quietly confident with the way his brand was performing so far this year with a positive order take
for March in the bag. ‘It’s like when a cricketer is batting very well, you don’t want to mention it because you fear the next ball will see him fail,’ he said. ‘That’s a little how we feel. ‘The orders are positive, the market is looking good, but it’s hard to pinpoint why.’ Ovenden said he was also looking forward to getting the Fiesta ST in showrooms. The sporty halo model for the Fiesta range is key to driving sales of Britain’s best-selling car forward. ‘It’s the perfect time in the Fiesta’s lifecycle to be getting it in dealers,’ he said. ‘We needed the model to help continue keeping it at the top of its game, and sporty models are what Ford are all about. I grew up with the Fiesta XR2 and a sporty Fiesta in our current range is vital. It will make up a decent proportion of the 90,000 we expect to sell too.’ However those out there hoping for an even sportier version of the Fiesta – one which mimics the rally car and sports an RS badge – will sadly be left wanting. ‘This will be the sportiest Fiesta we see,’ confirmed Ovenden. ‘I don’t think we’ll see anything hotter in the future – so enjoy this one!’
10-PAGE GENEVA SpeciaL STARTS HERE Skoda planning a larger SUV to follow in Yeti’s footsteps SKODA is working on an Audi Q5sized SUV as it looks to expand its range even further. Skoda board member for technical development, Dr Eckhard Scholz, right, told Car Dealer that for the brand to move on to the next level it needed to expand its range of SUVs. Following in the hugely successful footsteps of the Yeti, Scholz believes there is room for a larger, affordable off-roader for the marque. ‘I see space above and below the Yeti for more SUVs,’ he explained.
‘Skoda has to sell cars in volume segments – we are not a niche brand – and there is no doubt the SUV segment is a volume one worldwide.’ Scholz explained that discussions were currently taking place as to the size of the car, but he doesn’t want it to be ‘a Tiguan rival’. ‘That would not make sense,’ he explained. ‘We need a car with an attractive design and an attractive price. We’re working on a concept.’ Scholz also ruled out a vRS version of the firm’s new Citigo, but there may
still be sporty versions of the car. ‘We have a problem with engines in the Citigo which restricts us,’ he said. ‘But that doesn’t mean we can’t have an emotional model that is sporty. We’re also considering an electric version.’ Scholz did rule out Skoda ever producing a sports car though. He said an Mazda MX-5 or Honda S2000 rival just wasn’t right for the brand. ‘A sports car is not a volume model so isn’t right for us,’ he said. ‘We are not a sports car brand.’
Dr Eckhard Scholz
Let’s get excited again! Honda’s UK MD promises passion will be returning to the brand – and soon
H
onda UK boss Dave Hodgetts is promising to bring the excitement back to the Japanese brand. The firm has suffered in recent years with dull cars that few people have wanted to buy which translated into dramatic sales drop of 20 per cent in 2011. However, that could all be about to change with the unveiling of a new NSX at the Geneva Motor Show and positive talk about a Type R version of the new Civic. ‘We haven’t officially announced the Type R is coming back yet, but we would very much like that to be the case,’ Hodgetts told Car Dealer. ‘We’ve had discussions about it. Honda is keen to get the sporty image back and the Type R is important to help us achieve that. Over the next couple of years we will be pushing very hard to get that model back in the line-up.’ That will be music to the ears of dealers who have struggled to find buyers for what is essentially a passion-free range. ‘If we are honest, during the recession, Honda decided to slow down activities and sporty models are the ones that suffered,’ said Hodgetts. ‘During that time, fuel economy and efficiency were core things we had to deliver, but I think that was done at the expense of a sporty image. ‘Clearly it is possible to combine both – just look at the new NSX.’ Hodgetts believes Honda has a strong sporting pedigree in the UK and he is keen to see that back and exploited by the network. ‘We need the cars in the showrooms to sell though,’ he said. ‘The NSX won’t be sold in every dealership when it arrives in three years’ time – we hope it
Dave Hodgetts; NSX, above and left; and new CRV
will be sooner – but it will have a fantastic halo effect on the brand. It could also lead to more affordable sports cars in the range too.’ The new Civic is just arriving in dealer showrooms and a new CRV was also showcased at Geneva – both, Hodgetts hopes, will help to turn around the brand’s sales fortunes. He said: ‘The Civic has only just been launched in the UK dealer network and that’s a huge car for our network. It is going down very well. ‘We are certainly aiming to turn around the 20 per cent fall in sales from last year.’
Hodgetts did add though, that despite that significant drop, dealers were still ‘well in profit’ and said that this was something that needed to be built on in 2012. He added: ‘Finally we are in the year we deliver new products after lots of promises. ‘They are leading-edge, they match our competitors and we are refreshing the range with two new models in a year. ‘Over the next four years every one of our models will be refreshed and this product offensive shows we are on the move again.’ CarDealerMag.co.uk | 43
Feature.
The cake has to come before the icing at Kia Firm has ambitions to add a two-seater sports car to its range, but the brand needs to be more firmly established first, says its European chief Paul Philpott
Above: Paul Philpott; left and bottom: the new Cee’d. Right: Track’ster
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ia Europe’s chief operating officer Paul Philpott has confirmed his desire to see a two-seater sports car in the maker’s line-up – and says it’s a case of not if we’ll see one, but when. However, he has refused to give a timescale on when the car will arrive in showrooms. ‘Until we’ve baked our cake there is no point putting icing on it,’ he exclusively told Car Dealer. ‘We’re in process of baking our cake now with all the products we have in volume segments. When that cake is strong enough we’ll put the icing on it. That will come, but it’s just a case of when it is right for the brand. ‘It’s something I’d love to have in the range. But I won’t be drawn on when though. From 2010 to 2013 we have to get a strong presence in the A, B, C, D and MPV sectors – that is where the volume is. Sports cars won’t change volume or profitability.’ Philpott said that a sports car could only be introduced when the brand is well-established and the manufacturer’s focus at the moment is on ensuring volumes are increased. ‘Some sort of sports car in our range is critical,’ he added. ‘Whether that is a roadster or the Track’ster concept, who knows. But it does have to be a niche product that has global appeal.’ Philpott said Kia needs to ‘walk before it can 44 | CarDealerMag.co.uk
run’ and that means making a success of core cars like the new Kia Cee’d, unveiled at the Geneva Motor Show. ‘Cee’d is critical to us,’ he said. ‘It has been our best selling car since it was launched in 2007, so for the last five years it has been our top-selling car. ‘The new car will remain critical to Kia. It is what started the “new Kia” in 2007. But at the same time we cannot afford to be a one-car franchise. That’s why Rio and Sportage are very important too. You can’t have a profitable network
A MARKET IN DECLINE
Sedona set to go
THE Kia Sedona will be killed off when the replacement for the Carens MPV arrives next year, confirmed Paul Phillpott. He explained that the large MPV market is in decline with Renault’s decision to axe the Espace proof of that. ‘The market is declining for large MPVs with the exception of Ford and their S-Max,’ he said. ‘The replacement for the Carens will be about maximising space inside but it won’t be big on the outside.’ Philpott wouldn’t say whether the new model would retain the Carens name or not.
without a successful B-segment car. And Sportage is doing well in the SUV market where the margins for dealers are very strong.’ Philpott added success for Kia is about having a successful family of cars, not just one or two popular models: ‘Picanto is a great car, but selling an extra 10 is never going to make a huge difference to profitability for a dealer,’ he explained. ‘Dealers need to sell a range of cars, and that includes the new Cee’d.’ A QUANTUM SHIFT The new Cee’d debuts a dramatic design and is unique in that it is the first of the new Peter Schreyer models to be refreshed. Philpott said the important messages to get across to buyers was about refinement, interior quality and driveability. He added: ‘The evolution of the Cee’d is important. Old Rio to new Rio was a quantum shift, as was Sportage. The changes to these cars was dramatic. But with Cee’d we already have a strong customer base, so dealers have to concentrate on the evolutionary improvements. ‘The design is a good step forward. It is more premium and aspirational and it puts us among mainstream competitors. ‘Nothing is a revolution with the new Cee’d – but there have been steps forward in every area which is important to get across to buyers.’
GENEVA SpeciaL
Citroen boss: Why DS range is great news for dealers CITROEN chief executive officer Frederic Banzet has ruled out a spiritual successor to the Saxo VTR/ VTS in his current range of cars. The small, hot hatchbacks once played a key role in Citroen’s fortunes – and more recently, but less successfully, in the C2. However, Banzet told Car Dealer that the time for these models has passed. ‘I see the DS3 as that spiritual successor,’ he said. ‘It is more sophisticated than a sporty version of a Saxo or AX, but that is the way
Citroen has moved on. It may be less affordable, but those are the changes we have made as a brand.’ Banzet, pictured, added that the new DS range of cars are great news for dealers as they are more
profitable than the models that came before them. ‘Our strategy is quite clear, and that is to upscale the brand,’ he explained. ‘The most visible way we are doing that is with the DS line. DS3 is working very well in the UK and we’ve just launched DS5 in France where we took 8,000 orders in just two months.’ The Citroen chief said next on the DS agenda will be a DS3 convertible – which will be unveiled in Paris – then a large SUV DS for China.
‘DS models are great news for dealers as they are more profitable and are attracting different types of customer into the network,’ he added. ‘For years Citroen had only one element which was distinctive and that was being affordable. ‘We have now moved away from that and towards another territory where we see more demanding customers. These customer don’t just want to talk about price first, but are happy to talk about the car and the options which is great.’
Is this the roadster nowhere? Mazda Europe boss tells James Baggott the MX-5 might lose iconic attribute
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azda have not yet decided whether the replacement for the iconic MX-5 – due in two years’ time – will retain rearwheel drive. Mazda Motor Europe chief operating officer Philip Waring said that conversations were currently taking place about what size and characteristics the new model would carry over. Ditching rear-wheel drive – one of the MX5’s core attributes – would be seen by many as sacrilege. Even the very fact the firm is discussing it will worry a huge number of roadster fans. ‘We are considering what the options are at the moment,’ said Waring. ‘We all love the MX-5, but we need deep thought on it going forward. We almost are the entire segment. ‘It’s a great car, a popular car, but there are questions as to what’s right for the next generation of open-top enthusiast. ‘I’m certainly not talking about killing the MX-5 off, but we need to think about what size it should be and whether it retains rear-wheel drive. It all needs to be considered.’ He added: ‘We need to go through the thought process about rear-wheel drive. It would be my argument that it has to have it, but there is the
From the top, MX-5, CX-5, Takeri Concept rest of the world to think about.’ Waring said he is more focussed on ensuring sales across Europe start to bounce back. Figures have dropped from 330,000 units to 190,000 recently and new products will be key to seeing this turned around. ‘Part of our sales decline was because of the industry, but there has been a product ageing effect too,’ he said.
PRODUCT IS KEY
‘As a company we made the decision not to make small steps but to focus our resources on a sea change – and we have that in the CX-5 SUV. ‘The UK dealer network needs to focus on this car and the opportunity it represents. Then there’s the Mazda 6 to look forward to. ‘Product is key. The whole industry recognises
that and it is at the cornerstone of the whole industry. Customer demand equals profit.’ Waring said he would remind dealers of the good times between 2001 and 2005 which saw the manufacturer grow its sales in the UK from 15,000 units to more than 50,000. Last year Mazda shifted just over 30,000 cars and Waring wants to see it cracking 50k again soon. ‘Dealers can look forward to having great products that are right at the front of their classes,’ he added. ‘We have a powerful product story and a history as a brand of having shown we can go places with the right product. Dealers need to have faith. Remember the good days of 20012005 and look at the product we’ve got coming and see we’re on the same journey again.’ CarDealerMag.co.uk | 45
Feature.
Volvo needs an Evoque rival to really compete Acting Volvo UK chief tells James Baggott why the new V40 is key to turning around the marque’s sales fortunes – and reveals his hopes for an ‘XC30’
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olvo needs a Land Rover Evoque competitor if it is to do battle in the burgeoning premium SUV market, says acting Volvo UK boss Nick Conner. Conner – who has been in the hot seat since previous MD Peter Rask left the business in July 2011 – told Car Dealer that a car below XC60 would be a fantastic proposition for dealers. Conner said the vehicle – which could potentially be called XC30 – would be suitable for buyers downsizing from the firm’s XC60 and ageing XC90 products. ‘I think the car we are missing is a small SUV – maybe Nissan Qashqai sized,’ he said. ‘It’s not in the current plan, but it is something we’d like in an ideal world. ‘It is a sector that is rising. People are downsizing from larger SUVs and you can see how the Evoque has created a premium element to the segment and I think that will continue. ‘If buyers don’t have a need for seven seats there will be a natural move downwards with something below XC60. And an XC30 or XC40 would be great. ‘The XC products have almost become a brand in themselves.’ Holding the project back, though, is a suitable platform on which to build the car. Currently there isn’t one available, which would mean sharing with another manufacturer. However, this isn’t concerning Conner too much. He is currently focussed on the new V40 and the ‘fantastic opportunity’ it represents for his network. The new car was unveiled at Geneva and will be arriving in showrooms in July. ‘The V40 is critical to the network,’ said Conner. ‘It is the car the dealer network has been waiting 20 years for. This is the second biggest sector in the UK and is an opportunity to really drive interest in the Volvo brand and get traffic in showrooms.’ Conner explained sales will be limited this year by supply with only 2-2,500 cars available. However, 2013 is expected to see 12,000 find homes in the UK. ‘We held a dealer conference recently and had an interactive digital poll which asked them about our sales targets for the V40,’ he explained. ‘Some thought we were being too conservative with 12,000. A lot will hinge on pricing but we will be very competitive in the premium segment.’ Conner expects to steal sales from BMW 1 Series and Audi A3 buyers, while potentially capturing Honda Civic and Ford Focus buyers from below. 46 | CarDealerMag.co.uk
Clockwise, Nick Conner, XC60, V40
‘Honda buyers are naturally pre-disposed to Volvos,’ he said. ‘They want premium but don’t necessarily want a German car. Volvo is a good alternative.’ Conner is also hoping the new model will turn around the brand’s sales figures which slumped last year to 33,000 units – against a target of 40,000 units. ‘We are aiming to sell 36,000 cars this year,’ said Conner. ‘Last year was a disappointing one. The
market deteriorated quicker than we anticipated. We had a good start, but it fell away and we didn’t respond as aggressively as our competitors. ‘By the middle of the year we decided not to throw endless sums of money at the problem and said to dealers we were going to look at numbers and scale it back and try to retain margin. ‘This year we have the new product to change our fortunes and we will be working hard to ensure we do.’
‘DEALERS PREFER CERTAINTY’
Why hasn’t Conner got the top job yet? NICK Conner has been acting MD of Volvo Car UK since July last year – so why hasn’t he got the top job yet? Does he not want it? ‘Of course I want it, but as to why I haven’t been appointed yet, well maybe I’m not the right person to ask,’ he told Car Dealer. ‘There are a number of positions globally that need to be filled and then it will cascade down. I’m in a similar position to colleagues around the world. ‘Dealers prefer certainty, but I’ve said to them that I will be here for some time and that I will make decisions regardless of whether I’m
here for a month or a year, or 10 years.’ So has the ‘acting’ title restricted Conner on what he can and can’t do? Absolutely not, he says. ‘No, it hasn’t affected my decision-making or discussions with the dealer network,’ explained Conner. ‘I’ve been in the UK for 15 years; I have a bit of legacy. They know me as sales director, aftersales director and network director so I’m a known entity and they know what to expect. ‘I’ve made a point of saying to dealers that we won’t stop doing things because my position has not been confirmed.’
GENEVA SpeciaL
Alpine will be coming to the UK if the figures stack up RENAULT group marketing director Stephen Norman has confirmed the maker has bought the Alpine name to use in the UK. He said the name would be used on a ‘lightweight, high-performance sports car’ – but that it would only be launched if the manufacturer could get the ‘figures to add up’. ‘We wouldn’t have bought the Alpine name – which was owned by a non-car company in the UK – if we weren’t deadly serious about this project,’ said Norman, pictured.
He explained the car would not be basic and stripped out like a Lotus Elise, but would come with ‘creature comforts’. Norman said a car could be launched in less than 30 months if they can work out how
to make money on it – something they are still struggling to do. ‘We won’t launch a car to lose money on,’ he said. ‘This has to be a worldwide car sold in numbers. ‘It won’t just work in Europe. And we may have to join with another manufacturer to make it.’ Norman added that the UK will be a key market for the car and that he was extremely excited about the prospect. The Renault Nissan Alliance has recently joined forces with Daimler to develop joint
projects. Norman alluded to this during our meeting saying the next Twingo would be ‘radically different mechanically’ to the current model. Perhaps this points towards a tie-up with the next Smart. With this in mind a lightweight sportscar could well be jointly developed with Daimler – maybe a replacement for the Smart Roadster. However, this wasn’t confirmed by Norman. Car Dealer, for one, has its fingers crossed the French can get their sums to add up.
Online option for Dacia Company chief is confident his brand will have a third coming in the UK – and new budget brand Dacia could play key role. James Baggott reports
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enault is considering selling Dacia models directly to the public online when it launches the brand here at the end of this year. Renault marketing director Stephen Norman said a system was already in place in other countries for the budget models to be bought on the web. Buyers then simply turn up at the dealership and are given the keys. But a spokesman for Renault UK said a decision as to whether this would be introduced here had not yet been taken. Dacia models will have fixed prices and a ‘no-haggle’ policy, meaning dealers will have to change the way they sell the cars. However, Norman believes they will rapidly become a major part of the remaining UK Renault dealers’ business. ‘Dealers will make a very good margin on Dacia models,’ he explained. ‘Some 75 per cent of buyers will never have had the opportunity to buy a new car before.’ The strapline for Dacia is likely to be ‘Shockingly Affordable’ and dealers will have to invest a minimum of £3,000 to get hold of a demo and signage before they can sell the cars from their current Renault sites. Solus Dacia sites may even be considered later. Norman said research had shown 37 per cent of buyers would consider alternative methods of buying a car – including online – as opposed to visiting a dealer. But he admitted the options for dealers to upsell could be limited.
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Norman also spoke about the drastic measures in the UK at the end of last year which saw its range slashed and a third of its dealers axed. ‘We could not stand by any longer and watch the UK haemorrhage cash like it was,’ explained Norman. ‘We asked the UK management team to devise a plan – and that plan was put in place. It was very courageous. ‘We want the UK to break even by 2013. We have to let that plan play out now and not fiddle with it.’ Asked if he thought competitors, such as Peugeot and Citroen, would have to axe dealers and their ranges in a similar fashion, Norman tried to remain tight-lipped, but did let slip: ‘We know what our competitors’ situations are, at least we think we do. We are not stupid. Time will tell what they decide to do in the UK too.’ So why did Renault get into
There are only three markets in the world – everywhere, the US and the UK.
trouble in the first place? Well, Norman says that’s simple: It was down to poor products. ‘When the financial crisis hit in 2008 we scaled back new car projects and that has hurt us,’ he said. ‘Car design is key to success and we just didn’t have it.’ Norman said the new Clio 4 does have what it takes to succeed though and explained a new Laguna (2015), Juke-based crossover (2015), new Megane (2014) and new Espace (2016) are all cars to look forward to. ‘We have to get back to being the alternative to VW,’ said Norman. ‘If we can’t succeed then we will only have ourselves to blame. ‘In my opinion there are only three markets in the world – everywhere, the US and the UK; it’s that important. People in the UK are honest and love cars. Success in the UK will be a barometer of our success as a company. ‘Clio 4 is a make-or-break car for the Renault brand – but I am absolutely convinced it will make us. We will have a third coming in the UK.’ CarDealerMag.co.uk | 47
Feature.
Mitsubishi boss on Colt Car Retail Group deal Mitsubishi have sold their 11-strong dealer group to Japanese firm VT Holdings. Here, MD Lance Bradley explains in his own words how the deal came about
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got a call on my mobile out of the blue last summer. It was a foreign number and I almost didn’t take it, but I’m glad I did. It was from a company in Japan who told me they wanted to expand into Europe. They’d heard we had our own dealer group and asked if I would be interested in selling it. That’s not a call you get every day. We were not looking at selling the group. But it was such an unusual call I checked it out to see if it was genuine and who the company was. It was from a firm called VT Holdings and when we investigated, we could see they are a big dealer group in Japan with 125 dealers and lots of different brands. They are the 13th biggest by volume, but third biggest by profit, so they are enormously successful. We met with them and talked to them about their plans, because what we didn’t want to do was to damage the group. We’ve had it for 30 years after all. It was soon clear they wanted to get into Europe and that they were interested in the UK and they liked our products. So the conversations went further. We visited them in Japan and then they came here. They saw the sites and it was clear they wanted to turn it into a successful dealer group as part of their entry into the UK. It was a too good an opportunity to turn down. But it was not a case of a blank chequebook. I’ve been MD of Mitsubishi for three years now and I’ve always had a philosophy that you
should stick with what you are good at. We are good at importing and distributing cars and parts. How good are we at being dealers? Not as good as VT are. It was too good a deal to turn down for everyone. They want to use this as their first entry into Europe. The pound is so weak it is dead cheap. All the problems we’ve been having with buying things from Japan, are the opposite for them. It’s twice as expensive for us to buy cars from Japan, but half as expensive for them to buy companies here.
I was sad to see the dealerships sold as it’s been part of our business for a long time, but you can’t let that emotion get in the way of something that I think would be best for both companies. We’ll invest the money in marketing cars in the UK and supporting the dealer network through what is a difficult time. This makes it easier for us to continue that. I’ve had a number of calls and texts from people since it was announced – most of them wanted to know how we kept it so quiet. To be honest, even I’m surprised we managed to do that!
NETWORK HAS SUFFERED RECENTLY
‘We know times are tough but things WILL get better’ MITSUBISHI boss Lance Bradley knows times are tough for his dealer network, but he promised: Things will get better soon. A combination of a tough economy and run out models has seen the Mitsubishi network suffer in 2011 with sales down 19 per cent. However, Bradley is convinced the new Outlander – unveiled at the Geneva Motor Show – will help his dealers bounce back. ‘Outlander is very important to our dealer network,’ he said. ‘In the UK we are famous for four-wheel-drive vehicles. This is our second best-selling four-wheel-drive vehicle after the L200. So to get a new version, especially as
48 | CarDealerMag.co.uk
good as this, falls right into the heartland of what our dealers are best at. Times are tough at the moment so to get a new car that they all know they can sell is very important.’ The new Outlander arrives in November, but Bradley is convinced it will still add to the 3,000 units he expects to sell of the run-out model. ‘Volume will come from the L200 pick-up as the market for this is increasing at the moment,’ he said. ‘ASX is also growing and we have the new glocal small car arriving around the same time as the new Outlander.’ Bradley also explained how vital the Evo brand is to Mitsubishi in the UK and explained
he had high hopes for the next version. ‘The Evo is the most important car in our range,’ said Bradley. ‘A new version is being studied based on the next Lancer. No decisions have been made yet as to the powertrain, including hybrid options. ‘The performance of a hybrid would be fascinating, but one of things being weighed up is what will the reaction be from Evo fans to it. The UK is a key market for Evo so we’ll certainly be having a say as to how it looks. ‘In my opinion it has to be mad and you have to get out of it laughing manically. As long as the new one is like that then we’ll be fine.’
GENEVA SpeciaL Main picture: Audi’s new A3; and left, from top: Q5; Martin Sander; and the A1 quattro, unveiled by Audi at Geneva
RS versions of Q unlikely Audi’s two model types wouldn’t sit together well, UK director tells James Baggott
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udi is unlikely to build RS versions of its Q models because it believes that would be at odds with what the performance brand stands for. Well, at least that’s the opinion of recentlyappointed UK director Martin Sander. In an exclusive interview with Car Dealer, Sander explained that RS versions of its SUV models would certainly sell and could become potent rivals to BMW’s X6M and X5M, but he said he didn’t believe the two sat together comfortably. ‘For me, RS stands for the most extreme models for the race track,’ he explained. ‘An SUV has a high centre of gravity and that does not provide the same driving dynamics that our RS models usually have. ‘This is a challenge for the RS philosophy.’ Sander said it was his job, as part of the management team, to consider what is right for the premium brand and that at the moment combining Q models and RS was too much of a contradiction. ‘This is an interesting balancing act that we have to manage as a premium brand,’ he explained. ‘They would sell I’m sure. But then we could also easily sell 50,000 more cars a year simply by bringing the price down, but that is not a good business case. ‘It is tempting to combine RS and Q, but we have to ask, is it right for the RS brand? These cars need to be emotional and aspirational and have
ELECTRIC CARS
Hybrid technology is the stepping stone SANDER also believes that electric car technology is the future – but he said the technology isn’t right for the mass market yet. ‘We see hybrid technology as a stepping stone to EV technology,’ he explained. ‘Range is still a major concern. When you only have 100 miles and have to recharge for several hours this becomes a huge concern for buyers. That is why we will first launch hybrids as we think that is the best of both worlds. By next year you will see hybrids from us and it will start with an A3 plug-in hybrid. ‘But in the long run EVs are the future.
racing performance.’ Sander said he is enjoying his new role as the head of Audi UK. He replaced Jeremy Hicks who departed for Jaguar Land Rover at the end of last year. ‘I’ve been with the company for 17 years and I know the market,’ he said. ‘There is so much more we can do to continue the success of Audi in the UK. ‘We have not capitalised on all the opportunities that the new products offer yet. ‘Our brand is also going from strength to strength. It is extremely strong and is driving demand. Over the next couple of years you will really see a combination of a fantastic brand and
Battery tech needs to change, with more range. We need 500 or 600kms and the ability to recharge in a couple of minutes. ‘But you also need to consider infrastructure to recharge these cars or swap the batteries in them quickly. ‘And lastly the other concern is how do you make all this electricity? ‘When there are millions of electric cars on the road how do you find the power to charge them in an environmental fashion? ‘That will be the challenge as we move towards electric cars more than anything.’
a level of interest that will take our sales to the next level.’ Despite the economy looking tough and an expected flat new car sales market, Sander still believes Audi will grow in 2012. ‘We expected the market to be a struggle,’ he said. ‘But now sales in the first few months are up, order intake is strongly up for March. ‘We will be growing our sales significantly this year.’ However, despite this success Sander ruled out adding more dealers to his network. He said the established franchises are more than well placed to cope with the increased sales. CarDealerMag.co.uk | 49
Feature.
Can the 208 GTI do it for Peugeot? Buyers now want more from performance cars, says chief
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f you’re hoping the new Peugeot 208 GTI will recapture the magic of the iconic 205 GTI then don’t hold your breath. Peugeot director general Vincent Rambaut said that while harking back to the historical success of the 205 version was important, there was also a need for the brand to move on. And if that means losing some of the things that made the 205 GTI great in favour of luxuries, then so be it. Peugeot unveiled the Peugeot 208 GTI concept on its stand at the Geneva Motor Show and it was met with a mixed reaction from the press. With two lukewarm offerings in the shape of the 206 and 207 that went before it, many fans are hoping Peugeot can finally recreate the magic once more. Rambaut said: ‘First of all it’s a concept car, but let’s imagine that it becomes reality. We have to realise this is not 20 years ago – it’s today and
‘Time for us to push the Nismo message’ NISSAN GB boss Jim Wright believes Nismo can do for his brand what AMG has done for Mercedes. The performance models from the Japanese maker were confirmed for launch in the UK at Geneva and Wright is confident they can work wonders for the manufacturer. ‘It will support the overall brand image,’ he told us. ‘If you look at what other makers have done, Mercedes with AMG for example, you can see it supports the heritage of the brand. ‘Our job now is to educate customers as to what Nismo is. Unless you’re a car geek you won’t know, so it is up to us to push that message.’ Wright added the Nismo brand will be extended across the range in the future. He also believes the new Invitation Bsegment model, unveiled at the show, will compete head on with the Fiesta and is a ‘fantastic opportunity’ for his dealers. 50 | CarDealerMag.co.uk
Peugeot’s 208 GTI Concept received a mixed reaction. Right: Vincent Rambaut
the world has changed. What makes our brand special is that we have a history to look back on and part of that is the 205 GTI. In the UK this was a car that was very special and something big. It’s understandable people look back on this favourably, but we can’t dwell on the past.’ Rambaut explained that buyers now want something more from performance cars – it’s not just about speed, they want creature comforts and a few luxuries too. ‘We have to think about generation X and generation Y – what do they want from a new GTI?’ he added. ‘We need to have a strong link to history, that’s for sure. We are thinking about that – and hopefully we can come up with the right answer.’ Many hot hatch fans fear this could lead to another watered-down GTI, like the 207 version that preceded it and which was received poorly.
SEAT
A trio of launches SEAT dealers can look forward to three new model launches in 2012 – and boss Peter Whinney has high hopes for them all. The linchpin will be the new Ibiza, unveiled at Geneva, which will be tasked with increasing the 19,000 sales notched up by the current model in 2011. ‘It is our biggest seller,’ Whinney explained. ‘In terms of importance to the brand, it is number one. ‘And I think there is more growth to come especially in retail sales.’ Whinney added that the three and five door Mii models, also arriving this year, will be important as they see the maker enter a sector it left in 2005 – and one it was successful in. And a new Toledo will arrive at the end of the year with a sales target of 4,000 units a year on its shoulders. ‘These are exciting times for our dealers,’ he added.
‘We didn’t succeed with the 207 GTI,’ conceded Rambaut. ‘I had one and I was extremely happy with it, but it didn’t succeed with buyers. I hope we can get it right with the 208 version. There was something magical about the 205 GTI – it attracted men and women in equal measure. I hope the new version will do that again.’ Rambaut said the new 208 – which arrives in showrooms in a few months – has been extremely well received with those dealers who have driven it. ‘Many of them get out with a big smile on their faces and know we have recaptured what made our B-segment cars great in the past,’ he said. ‘The new car is fun and exciting to drive – you get in it and grip the steering wheel and it just makes you want to drive. Dealers, from all over the world, say the new 208 has just got it. We have a lot of years ahead of us with this car.’
March orders looking good for Hyundai HYUNDAI UK chief Tony Whitehorn has been pleasantly surprised by the new car market so far this year – and hopes the new i30 will boost sales even further. ‘March orders are looking good,’ he said. ‘It is better than I expected and a surprise considering a lot of people thought 2012 would be tough. All of a sudden people are out buying cars – corporate and retail. I’m cautiously optimistic, but then last year started strongly then dropped off a cliff.’ Whitehorn said the new i30 has had the tough job of being the first i car replacement, but he feels it has taken the game on enough to attract retail sales. ‘When replacing an i model we needed to make a significant difference and I think this is,’ he said. ‘Quality is comparable to a Focus and Golf.’
GENEVA SpeciaL
Vauxhall dealers told of Mokka’s huge potential New SUV is being pitched against Nissan’s British-built Juke... and it’s set to become a big-seller for the Griffin-badged brand. James Baggott reports
V
auxhall’s Nissan Juke-rivalling Mokka SUV will rapidly become its third best selling model, says boss Duncan Aldred. The Vauxhall UK chairman and MD says the car will soon outsell the Insignia and sit just below Corsa and Astra in the marque’s sales charts. ‘It is the most important car on our stand for dealers,’ explained Aldred at the Geneva Motor Show. ‘It’s a small SUV that has huge potential for us. The industry and consumer preferences are moving towards this type of car. It’s practical, but fun and fresh in an affordable package. ‘I expect next year – in its first full year of sales – it will become our third best selling model. Buyers will mostly be incremental sales but there will be some cross over from buyers considering Insignia, Astra and some downsizing from Antara.’ Aldred said the new model may even spawn a VXR version in the future, but at the moment that badge focus is on the new Astra VXR, which was also unveiled at the show. WE CAN’T WAIT ‘The Astra VXR is a pinnacle model for us,’ said Aldred. ‘It is a car that is perfect for the UK marketplace and the fact that Ford has chosen not to do a three-door version of the ST somewhat opens up the opportunity for us. ‘We expect to sell more Astra VXR models than Volkswagen will manage with the Golf GTI three and five door models and Scirroco R combined. The VXR has a real place in buyers’ hearts.’ Aldred said he had already put his order in for his and expects to be driving it in eight weeks. He will be stepping out of a Corsa VXR Nurburgring. ‘Cars like the VXR are what dealers live for – they are enthusiasts at heart and while the Mokka will keep the tills ringing, it is cars like the VXR that will keep them motivated,’ he added. ‘We can’t wait for it to hit the streets.’ Mokka and the VXR are the start of a seven new model cycle for Vauxhall in the next 12 months, all of which Aldred believes will help close the gap on market leaders Ford. ‘It’s always nice to be number one and the gap has closed over the last eight years quite significantly,’ he explained. ‘We can close the gap in three
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Above: Vauxhall VXR; right, the new Mokka, and left, UK chairman and MD Duncan Aldred
ways. Firstly in retail with our lifetime warranty being a paramount proposition. Secondly we make it affordable to purchase a Vauxhall with flexible finance products. And then thirdly we have amazing new products with seven brand new cars coming in 12 months and that is a product gain that is unrivalled by anyone ever. Certainly in our 109-year history it’s the most exciting time for us.’ Aldred said he has taken the decision to move out of some fleet channels in 2012 though which will see his brand’s market share drop from 12 per cent to 11. He said: ‘The reason for this is because it is not profitable business and it can have a downward impact on the resale value of vehicles. So by selling less to fleet we can drive the value up for retail customers’ cars. That is a firm plan which will help improve the cost of ownership.’
Cars like the VXR are what dealers live for – they are enthusiasts at heart and it will keep them motivated.
ELLESMERE PORT
Fight on his hands VAUXHALL boss Duncan Aldred says he’ll fight for the future of the Ellesmere Port factory when the current Astra’s run comes to an end. Although he couldn’t confirm whether another car would be built at the plant he did say that he’d be doing all he can to ensure his bid to build another model there is successful. ‘Everything goes through its deliberations, but at this point in time Astra still has a few year to run and as with any product we have to go through a bidding process,’ he said. ‘And that’s what we will do. In terms of UK manufacturing we built more than we expected to last year and both our plants (Luton is the second) are performing well. ‘We’ll fight for the future of Ellesmere Port. Building in the UK is a core part of the Vauxhall brand so we always like to see it retained in the UK.’ CarDealerMag.co.uk | 51
focus on.
OFFICE OF FAIR TRADING A FAIR DEAL
Helping dealers stay on the right side of the law W: oft.gov.uk/cd-soga-print T: 08457 22 44 99
T
he letters OFT may sound intimidating to car dealers large and small, but dealers should not be afraid. That’s because the government body wants to help dealers carry out business better and, more important, to stay on the right side of the law. Consumer and sales law is one such area where the OFT is keen to help dealers. It’s important to brush up on these laws now and again to make sure everyone gets a fair deal. Most dealers want to provide a high standard of service, so it can be easy to assume you’re already ticking all the legal boxes. But advice line Consumer Direct continues to receive tens of thousands of complaints from customers about used car sales, with some dealers refusing to deal with complaints or fix problems that are their legal responsibility. The Office of Fair Trading’s 2009 probe of the used-car sector found that one in 11 dealers relied on illegal disclaimers such as ‘no refund’ or ‘sold as seen’. It also found one in four dealers failed to supply enough information to customers about the vehicle. Practices like this leave many customers unhappy and give the trade a bad reputation. Out of the 56,000 complaints received by the OFT-managed Consumer Direct last year, more than 70 per cent of the complaints were about faults with cars, while 13 per cent were about misleading claims or omissions by the seller; and nearly seven per cent were about sub-standard services. An OFT study published in 2010 found that consumers are left out of pocket by an average of £425 each, or £85m per year in total, because they have to fix unresolved faults that are the dealers’ obligation to correct. Michele Shambrook from Consumer Direct said: ‘We continue to receive a high number of complaints which are often due to some traders refusing to deal with legitimate complaints or provide appropriate compensation. ‘We want to help people understand their rights 52 | CarDealerMag.co.uk
when buying a used car from a dealer and we are working with the industry and local authority trading standards to get this message across. ‘Dealers who fail to treat customers fairly or sell cars that are defective could face enforcement action.’ Figures like these have prompted the OFT to launched a Know Your Consumer Rights campaign. As part of the campaign, the OFT has produced a short online film – oft.gov.uk/kycr-carvideo – to inform people about their basic rights when buying a used car, and what to do if they encounter any problems after purchasing it. It is also working with local trading standards and the motor industry to make information on consumer rights more readily available. But don’t think the OFT is just on the side of the consumer. They are also focussing on helping dealers from having to deal with unhappy customers. Dealers can keep their customers happy, stay on the right side of the law and avoid the headaches that come with dealing with complaints by following a short checklist developed by the OFT. It gives practical tips to help dealers comply with the law including: n Dos and don’ts on pre-sale history and mileage checks, such as checking whether a car is subject to outstanding finance, has been previously written off, or clocked. n Examples of legally important information to give to customers before a sale, such as telling them about any problems you have found, and drawing their attention to key warranty terms. n Tips on after-sales service issues such as complaint handling, faulty vehicles and warranty claims. Having a fair after-sales procedure that all staff understand will help you deal with all complaints quickly. The OFT’s checklist covers two important laws, the Consumer Protection from Unfair Trading Regulations 2008, and the Sale of Goods act 1979,
that affect how dealers treat customers. It’s available from oft.gov.uk/cardealerschecklist. Dealers can also register for free on the OFT’s Sale of Goods Act hub for up-to-date guidance, training and promotional materials at oft.gov.uk/cd-soga-print. Every car dealer knows that happy customers lead to word-of-mouth recommendations and repeat business. A good reputation is essential for any business wanting to grow in difficult economic times, and meeting your customers’ needs within the law is an important foundation for growth.
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Dealers can keep their customers happy, stay on the right side of the law and avoid the headaches that come with dealing with complaints by following a short checklist developed by the OFT.
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A wealth of information for dealers
Improving standards Peace of mind for the consumer IN NOVEMBER, Motor Codes’ Motor Industry Service and Repair Code received OFT approval for its code of practice under the OFT’s Consumer Codes Approval Scheme (CCAS). The OFT only approves codes that have proved effective in safeguarding and promoting consumers’ interests, going further than the basic requirements of the law. Colin Brown, director in the OFT’s Goods and Consumer Group, said: ‘Getting your car repaired and serviced can be a daunting experience. Today’s announcement is good news for drivers, who can be confident that where they see an OFT-approved code logo
they will receive a high standard of service and will be treated fairly if problems arise. ‘I congratulate Motor Codes on its work in driving up standards for consumers in the car repair and servicing sector.’ Chris Mason, managing director at Motor Codes, said: ‘Motor Codes set out to improve standards in the car service and repair sector and raise consumer confidence, highlighting responsible businesses. This announcement sends a clear message that we offer a comprehensively-backed code of practice and our large network of garages delivers real peace of mind for the consumer.’
THE OFT has put together a special portal called The Sale of Goods Act (SOGA) Hub allowing dealers to have comprehensive and up-to-date information about the Act – oft.gov.uk/cd-soga-print. One useful area of the Hub gives scenarios where SOGA comes into play. Here’s an example... Q: We sold a five-year-old car to a gentleman a month ago. It was in good, clean condition with low mileage for the year of manufacture. The only fault was a loose rear door window handle, which was pointed out to the customer during negotiations. The customer said he was sure he could fix this himself so we offered him a slight reduction and made a note of the faulty handle on the sales receipt. He has now come back to us saying he can’t fix it after all and has asked us to repair the door handle at no cost. Is he entitled to this repair? A: You are not liable to repair the window handle as you pointed the fault out to the customer before he bought the vehicle. Your legal obligation is to make sure the vehicle is of satisfactory quality taking into account factors such as age, mileage, history, safety and description, whether made verbally or in writing. By informing your customer of the fault on the window handle before the sale, you are not liable for its repair. It is good practice to make a note of any faults in writing at the time of sale. [CD] CarDealerMag.co.uk | 53
Feature.
End of a long journey
It’s up for sale at last! JAMES BAGGOTT reports on the penultimate stage of our 911 for 2011 campaign, and confesses to being tempted himself.
F
inally – after nearly two years of hard work – our Porsche 911 is up for sale in aid of charity BEN. For those of you who’ve been following the quest, apologies, but here’s a quick recap: We started with nothing, traded up 13 used cars with the help of the industry and finally managed to buy R97 RRK in October from a Brummie dealer. Told you it’d be quick... Anyway, since then we’ve twisted the arms of our industry contacts, starting with Porsche GB who gave it £2k’s worth of servicing, then the clean team at Autoglym spent nine hours making it look like new. Our 90k-mile 996 Carrera 2 was then dropped off at Porsche specialists 911Virgin.com. There was one slight hold-up though. Before Henry Firmin and his team were
prepared to put her up for sale he wanted us to arrange a warranty. Henry is selling the car completely commission-free so we can hand over the entire proceeds to BEN – so he was understandably worried that, as the selling dealer, any comeback would see him out of pocket. So we set about trying to find a warranty. Enter stage right, Car Dealer Power warranty award winners Car Care Plan. It isn’t normally the sort of car they’d be able to provide cover for – it’s too old – but they promised they’d find a way. The firm’s Andrew Jackson was soon back in touch with a year’s cover that satisfied Henry and meant our car could finally go on sale. R97 RRK went up for sale on 911Virgin.com for £11,995 and we’ve got everything crossed she finds a home soon. To be honest, it’s an absolute
Some of the cars we bought and sold as we traded up from £0 to our Porsche 54 | CarDealerMag.co.uk
cracking buy. There aren’t many 911s of that age and mileage that can claim to have been given the once-over by Porsche GB – and with the Car Care Plan warranty to put buyers’ minds at rest too, it shouldn’t hang around. Having spent three months with the car myself, while we were getting everything sorted, I’m even rather tempted myself. I loved the way it drives, the steering is incredible (it’s so true what they say about 911 steering), and it’s quick enough to be very entertaining. It’s already started to attract some attention on PistonHeads.com too – a thread has already popped up about it – following the advert going live on the site. Let’s hope the next update about this story features me in local newspaper pose handing over a giant cheque to BEN. [CD]
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ONLINE ADVERTISING
AUTO TRADER
Why standing still is never an option W: autotrader.co.uk T: 0208 544 7041
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uto Trader is on mission to help dealers get in tune with customers who are becoming increasingly influential when it comes to buying cars. ‘For a car dealer to just have a website is not enough these days,’ says Auto Trader’s group director Nathan Coe. ‘We want to turn dealers into internet car retailers.’ A dealer with a website telling customers about their business does not cut the mustard any more. Dealers need to be embracing online advertising, mobile, social and video chat – they need to offer everything. To dealers who are just coming to terms with the possibilities the online arena can bring, that may sound like a dream that could never come true. However, look at the market dynamics and consumer behaviour and Coe’s vision is the right path to be taking. Consumers are becoming more and more pricesensitive by the day. Auto Trader reports 62 per cent of consumers say a dealer offering a fair price for a car is the most important criterion in choosing which dealer to spend their money with. ‘Consumers are becoming more knowledgeable too; buyers will spend on average 11 hours online researching online cars. And they are competitive, with 24 per cent of buyers admitting that they will travel more than 100 miles to buy the car that is the one for them. The figures suggest consumers turn to Auto Trader above other online advertising means. Auto Trader is not only the number one in the sector, but also the seventh most searched-for brand in the UK. But being the number one doesn’t mean complacency – the firm is totally focussed on leading from the front. ‘We have a responsibility to lead the market,’ says Coe. ‘We have to invest in our business, and if you look at the changing behaviour of the consumer, it is beholden on us to identify how those changes apply in our market. The likelihood of anyone 56 | CarDealerMag.co.uk
Busy, busy, busy! Auto Trader by numbers n The UK’s seventh most searched for brand n 1bn page views per month n 10.8m unique views per month n 1.7m mobile unique views per month n 160m-plus searches a month n 219,000 searches an hour n Plays a part in two thirds of UK car sales n 10.3m unique visits in January n 2.2m people accessed Auto Trader on a mobile in January – up 138 per cent else really focussing on that in the way we can is relatively small.’ A good example of Auto Trader’s attitude is with the subject of mobile online advertising. For some of its competitors, mobile is not a primary focus of their businesses – but for Auto Trader it is very much at the forefront of their minds. ‘People are saying ‘‘the mobile net is the next big thing’’ – it’s here already,’ says an adamant Coe. ‘Those who are saying this, have missed the boat already, but there are a number of dealers who are just not able to take the big leap on their own. ‘Before mobile online advertising, consumers were empowered at their computer desk and then went to the dealer – but that has changed. Now a consumer can be looking at a dealer’s stock online while they are the forecourt of another dealer. Mobile web is changing the way people buy cars, and at the moment we have 2.2m people using our mobile site – a 150 per cent rise year-on-year.’ Coe also believes that if dealers do not reply to a customer on live chat within 16 seconds, the customer is lost. ‘It’s amazing to think that five years ago, a reply to an email within 24 hours was the norm. Now, that’s just not the case.’ Live Chat is
one area where Auto Trader is helping dealers; they are currently trialing the system on advert listings allowing customers to make instant decisions on whether that car is the right car for them. Auto Trader can help here in all things mobile and online advertising – but being just a famous name is not enough. In times where dealers can choose to spend their money, Auto Trader has to provide solutions and services that can really tempt dealers to their way of business, and, more importantly, help them. ‘We provide a big marketplace for lots of consumers to buy a car, and dealers can advertise there,’ says Coe. That may be the simplest service they provide, but there’s more. ‘What the web has done to car retailing is more than change the way a car is advertised – it has changed the way cars are sold. People are making buying decisions immediately and taking 3.7 months looking for a car, and 84 per cent are actively researching in a month. ‘Due to the consumer being able to look on Auto Trader and see the prices asked for a car, they are savvier than they may have been 10 years ago. And that means dealers are as competitive as ever,’ remarks Coe. ‘We can really help dealers with the bespoke stuff and tell them what cars to stock and what prices to pay and how they should price them on Auto Trader. We’ve got a product called Market Tracker that basically says in a dealer’s local area what are the most popular cars and how demand there is on Auto Trader for those cars. ‘We are effectively identifying consumer intelligence to give them help.’ Coe stresses that although the firm effectively
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Due to the consumer being able to look on Auto Trader and see the prices asked for a car, they are savvier than they may have been 10 years ago. And that means dealers are as competitive as ever.
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moved from a being solely a print publication to an online medium, Auto Trader is still a people business. One such initiative that proves this point is Auto Trader’s support centre is now open seven days a week, ‘because dealers are always dealing; they don’t switch off at 5pm,’ and the firm has created what can only be described as a social network purely for dealers. ‘We genuinely have a great relationship with our dealers,’ says Coe. ‘We recently launched Dealer Community which is a private social network for dealers, and we thought at launch this is going to be quite interesting. But 7,100 dealers have been onto it – and they are not using it to specifically talk about Auto Trader. They are using
it to talk about general matters in the industry.’ Dealers have also used it to voice their concerns about the service they are getting from Auto Trader, and the firm has listened to these and put systems in place to rectify them. For instance, through Dealer Community, Auto Trader recently received 103 ideas for change in total, implemented nine of them and 20 of them are in development. ‘We’ve gone through a huge listening exercise and made tangible changes to way Auto Trader operates – changes which have come directly from our customers.’ Standing still is not an Auto Trader option – they are always looking for the next thing. Perhaps you should be joining them on that journey… CarDealerMag.co.uk | 57
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.
ONLINE ADVERTISING AUTOTRADE-MAIL
Passionate about helping the industry W: autotrade-mail.com T: 01243 523 000
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he message is clear at Autotrade-mail – speed of response should be dealers’ number-one priority. Part of the Trader Media Group, Autotrade-mail is the UK’s leading online used-car trading platform – so it knows what it’s talking about. The platform advertises more than 20,000 fresh cars per month, has been serving dealers since 1999, and has seen years of continuous month-on-month and year-on-year growth of quality stock. The number of members has been growing too and recently the firm clocked its 5,000th member – all safe in the knowledge that they have secured some exciting additional supply lines. However, Autotrade-mail is not just a used car trading platform. The service has introduced a number of measures to ease the process of acquiring stock and help dealers respond quicker. ‘Speed of response is key in this day and age,’ says Autotrade-mail’s operations director, Kevin Watson. ‘We love innovation and are passionate about helping the industry we serve, we understand how difficult it can be for dealers, and how marginal the market has become. ‘Most recently we have introduced a service called Escrow to provide extra fast safe payment transfer, and we now provide a transport facility to aid collection or delivery. ‘Dealers cannot afford to have stock sitting around taking up space or burning interest, or locking up cash that can be working.’ Watson is clear why dealers should be investing in online advertising, and using Autotrade-mail. ‘With 5,000 members you can start to understand why we are responsible for quite a bit of online email traffic – we typically send out 15 million emails a quarter to dealers, for instance. ‘There will always be a place for traditional trading with auction houses, but you would have to have done the deal before you can place the vehicle into an auction.’ Autotrade-mail has a variety of stock available and dealers using it. For instance, in addition to physical cars advertised, Autotrade-mail has a large number of dealers who are ‘trying to deal’. ‘Can you imagine me standing in the middle of an auction hall getting a bid for something I’m
trying to do a deal on? It just wouldn’t work,’ says Watson. ‘Yet online it is one of the most popular facilities among not only our independent specialist dealers, but also the more proactive dealer groups – in fact more than 35 per cent of the franchise network subscribe as members of Autotrade-mail.’ And Autotrade-mail’s members are happy. ‘Recently Underwood’s Motor Group told me how pleased they were with our service. They said their first response to the first vehicle published on Autotrade-mail arrived before our operative had finished explaining the various facets of the service. ‘It was followed by a significant number of other interested parties – impressive! They told me they
may have to re-evaluate how we dispose of vehicles we don’t wish to keep.’ Along with the addition of an extra fast safe payment transfer and a transport facility, Autotrademail has another feature that reduces stock-sourcing time. ‘We have a smart free toolbar app, where our computers can present a vehicle advert pop-up to a member’s PC screen within 120 seconds max. ‘It just makes finding stock that much quicker and easier; a section of our group buyers have been loving it for years,’ added Watson. Still not convinced? Autotrade-mail offers a free two-week trial to try out their service meaning there’s never been a better time to try something new. CarDealerMag.co.uk | 59
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ONLINE ADVERTISING TRADEOUTS
Tailor-made technology saves money and time W: tradeouts.com T: 01327 589589
W
Trad e 5IF U SBEF out POMZ TJUF GP s.com S EFBMF ST
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We respond to dealer requests. We are competitive, innovative and we listen to ideas.
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hy should dealers have to be chained to their desks to have a chance of getting hold of the best stock? That’s the question one Northamptonshire business is asking. Car Dealer featured Tradeouts late last year as a start-up business, but now, three months on, the company is flowering. ‘We’re doing very well,’ says an optimistic David Brown, Tradeouts managing director. ‘We’ve got 700 dealers signed up, which is just fantastic. When we launched, we had hopes of signing up some of the biggest names in the industry, and we have begun that journey by now having Lookers, Europcar and Avis coming on board.’ It’s not just large organisations that have turned to Tradeouts, but smaller dealers and independents too. ‘Dealers have turned to us for several reasons,’ explains Brown. ‘The most obvious is the site’s ease of use as it’s well set up for the modern dealer. I say modern dealer because dealers these days do not have the time, nor the inclination, to stay at their desk and wait for the right car to come along. Desk-bound services are frustrating for dealers as they are not mobile – but Tradeouts is mobile.’ In essence, the site is a platform for dealers to purchase stock from other dealers and sell their cars – but while the website can turn an unwanted part-exchange into pound notes, Tradeouts’ real attraction is the ability to source exactly the stock a dealer wants. ‘Imagine you’re a dealer who only trades in BMW 1 Series,’ says Brown. ‘There are two scenarios that can happen – you receive a Volkswagen Polo as a part-exchange and that car is not suitable for your forecourt and you want to get rid of it; or you’re looking specifically to source 1 Series stock. Tradeouts can help in both respects.’ The Polo can be advertised quickly and simply on Tradeouts and other users are notified of the new listing – but it’s sourcing the stock that’s the really clever part. Users can carry tailor-made searches on the site by filling in their requirements such as age and price and will be notified as and when such specific stock becomes available on Tradeouts. So, for that 1 Series dealer, they will only receive updates about a 1
Series that falls within their search criteria, and such listings all have the seller’s contact details meaning the 1 Series dealer can strike while the iron is hot to get that deal. One major attraction for dealers to Tradeouts is how they are notified of stock becoming available. Not only can users receive free text alerts, but the firm has a smartphone app allowing dealers to be
in constant contact with Tradeouts meaning they’re never far away from a tempting deal. Surely such time-saving technology costs a fortune? ‘No, it doesn’t,’ says Brown. ‘Per outlet it’s ÂŁ40 per month – but that’s only after a dealer’s free, no-obligation two-week trial. ‘For a dealer who is investigating online advertising or thinking of switching their service, Tradeouts can be really helpful. A dealer can sign up today, and if they find they don’t like our service, they do not have to take it any further.’ And the firm is offering up to 12 months’ free through a referral scheme. Brown is clear why dealers should be using Tradeouts. ‘We are responsive to dealer requests,’ he says, ‘We are competitive, innovative and we listen to ideas.’ And if that isn’t enough, Tradeouts is also opening up its service to commercial vehicles meaning there isn’t a better time to see what Tradeouts can do for you. CarDealerMag.co.uk | 61
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ONLINE ADVERTISING TRUSTED DEALERS
The vital difference: Dealers can invest W: trusteddealers.co.uk T: 01423 506272
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They are standards that make the cars advertised on Trusted Dealers the best quality.
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unique used car classified website is celebrating one year of trading, proving that it’s created a winning formula. ‘Trusted Dealers is a used car classified site but it’s owned by 35 of the UK’s dealer groups,’ says the firm’s managing director, Neil Addley. ‘Our purpose is to generate used car inquiries at the cheapest prices we possibly can.’ The site operates like any other used car classified website – but there’s a crucial difference. Dealers can invest in the website if they choose, becoming part of a special and trusted dealer network. ‘It is a bit like a co-operative, and was conceived by Perry’s chairman Ken Savage and Lookers’ chief executive Peter Jones, with help from Vertu’s Robert Forrester,’ explains Addley. ‘They then got together with a number of other heads of dealer groups and came up with the concept of a dealer-backed used car advertising platform, partly in a response in the frustration of the continued price rises of some classified websites. Our focus is very much in delivering the cheapest leads we can to our members.’ To join the website, dealers have two options. They can become a full member by making a capital investment in the business and then pay an advertising fee, or become an associate member where an upfront investment in not needed. The latter is how other online advertising platforms work, and associate members pay an advertising fee, and sign up to Trusted Dealers’ standards that are called the 10 points of difference. ‘These 10 points mean that every car that is uploaded to Trusted Dealers has a theft and written-off check, an outstanding finance check, a mechanical check, has a minimum of three months’ MOT on it, a warranty, is valeted, and the dealer welcomes a part exchange and is able to offer finance and service plans,’ says Addley. ‘They are standards that make the cars advertised on Trusted Dealers the best quality that anyone could get.’ Addley adds: ‘We have created the two-pronged membership offer because, in these toughened times, putting a capital investment in is not always possible. We feel we have the best consumer proposition as a website, and the 10 points of
difference give the best peace of mind to the consumer that you can get. ‘But we need to make sure we are building the inventory on the website, so people can continue to find what they are looking for.’ That is one area Addley and the team are concentrating on over the next 12 months. The site can already boast 25,000 cars on its website – and with the advertising fee being £1.05 per car
per week for all members, the firm is planning to increase the number of members this year. However, signing up to Trusted Dealers does not mean that’s the only place dealers’ cars will be advertised. ‘We spend as much as we can on marketing our members’ stock which, includes investment with Google, but also distribution partnerships with websites such as Exchange and Mart, BuyYourCar. co.uk, and Compucars.co.uk which deliver extra value to our members. ‘We give our dealers complete transparency on the number of calls and emails generated from our site. Our focus is entirely on delivering the best quality and best-priced leads to our members.’ And Addley is just as clear on why dealers should be using Trusted Dealers for their online advertising too: ‘Really, if dealers are looking to advertise online, Trusted Dealers is the website that is focussed on bringing them value – and they should be working with us either as a full member or an associate member.’ [CD] CarDealerMag.co.uk | 63
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with training? Let us (or rather our experts) help. Dave Brown finds out the best ways to propel your team towards excellence
T
raining. We’ve all been there, done it and got the certificate. Sometimes a training session can be invigorating, rewarding and leave the person on the receiving end with the feeling that something real and lasting has been achieved – something that will help their performance in the workplace and in short, make them better at their job. But on the other hand, we’ve all attended training sessions that, frankly, were a waste of time. What’s not in doubt is the importance of effective workplace training. The first of the experts we consulted for this month’s Top Tips feature, Nigel Head, Castrol professional OEM and franchised workshop marketing manager, said: ‘Improved training for customer-facing staff equips them with necessary skills to successfully deal with customers, helping service advisers win their trust and repeat custom.
TOP TIPS EXTRA
Make it fun! STEVE Baker, the technical training expert at MG Motor UK Ltd, had the following advice for us: 1. Never assume everyone is at the same knowledge level. Always aim to satisfy the least experienced learner. 2. Presentations are a wonderful tool when used in moderation 3. If you can, always try to put your learners in a familiar environment – practical people don’t necessarily take to virtual worlds. 4. Prepare well, always know more than you think you need – remember all the Ps – poor personal preparation leads to poor personal performance! 5. Never try and bluff your way through with answers you are not sure of. 6. Above all make learning fun! Everyone remembers a good joke. 64 | CarDealerMag.co.uk
‘Service advisers are able to boost customer confidence in the dealership if they are more confident in handling queries or upselling additional products or services.’ Greg Rigby, of Pendle Consultants, had an interesting perspective on the nature of training. He told us: ‘Training is the process that an airline pilot goes through, sitting in a simulator being prompted by a variety of alternative scenarios. ‘He pushes buttons and pulls levers over and over again until eventually all the right actions and reactions become spontaneous. It is the same process that a professional footballer follows when he spends hours kicking a ball in a particular set-up on the training ground or a golfer carries out when hitting thousands of balls on the driving range. ‘Dealer personnel have none of the luxuries available to professional sportsmen. Because of that they are obliged to attend short courses offered by the manufacturers, by dealer training departments or by independent specialists.’ COACHING AND ENCOURAGING However, Rigby says car dealers should be more like Tiger Woods or Fernando Torres: ‘Training should take place daily at the beginning of the employee’s shift and should involve the team of people carrying out similar work. ‘It should involve repetition and a review of one of the elements of that group’s working practices, duties and responsibilities. ‘The session should be run by a different member of the team each day and that person can bring role play, video, description and/or illustration to the session. It should be supervised by the team’s manager and/or controller who will introduce it and summarise it at the end. Thereafter, they will work with the team during the day, coaching them and encouraging them to do all those things that were identified in the training session. ‘The processes that each person is supposed to follow should be split into key stages and the performance of each person monitored in relation
to these stages. A fall-off in performance in any one of these stages will indicate a training need for that individual. This will give management the opportunity to do one-to-one sessions aimed at eliminating the shortfall. Where there is a general shortfall in one of the stages by the entire team then the training session should be run by the management and they should invite the team to comment on any shortcomings or failings of the management team in their support of the group.’ One thing that’s not in doubt is the fact that car buyers are increasingly turning to technology to plan their next automotive purchase. And this is where Tim Smith, commercial director of GForces, had some wise words about the training needed for car sales professionals to adapt to this growing trend. ‘Ninety-four per cent of people begin the search for their next car online,’ he said. ‘To capitalise on this ready-made market, you need staff that can use every tool in your digital arsenal in the most effective possible way. ‘Most importantly, you should use a training
DataFile CONTENTS.
Right click 67 Net Gains 69 Auctions 70 Shares 71 The Statistics 73
SMMT sales figures 75 Suppliers guide 76 Trader directory 78 Jobs 81 Time Is Money 82
VOLVO’S VIEW
Brief them well... A COUPLE of ‘before and after’ tips from Volvo Car UK training manager John Pitts: n Never send anyone to be trained without a thorough briefing to ensure they understand what they are expected to learn and be able to do when they return to work. If you don’t do this, prepare to waste your money on the actual training event. n Always carry out a post-training meeting with the learner to establish what they have learnt, what they intend to practise and how they can be supported in making the change. Here again, without this you reduce the effect of the training dramatically.
Follow the advice of our experts to make your training sessions more effective
‘You need staff who can use every tool in your digital arsenal effectively.’ scheme which targets relevant information at the correct staff. Thirty-three per cent of consumers will choose another dealership if response times are poor, so sales staff need to be briefed on effective – and timely – lead management, using live chat or call-back facilities for example. ‘Marketing managers, on the other hand, need to be able to look at website statistics from tracking software and understand the data. Without this, online marketing strategies will be disjointed. ‘Employing the right training consultancy is just as important as the training itself. Staff shouldn’t be spoon-fed best practice; they need to be taught how to stay ahead of the curve. Trainers who have worked in the industry and either used, or developed the systems about which they are teaching will give you a serious advantage from
the outset. If your staff can’t effectively engage with customers, on their terms, they will simply go somewhere that can.’ The online approach was one shared by Mazda. The company believes that staff training doesn’t require hotel meeting rooms and lengthy trips away from the business. Instead, online training and video conference calls should be considered. ‘Online training gives our colleagues focused and useful insight into everything, from ‘‘soft’’ skills to technical and product knowledge, and it cuts the time that they spend away from the business,’ says David Orriell, multi-franchise site manager at CoOperative Motor Group’s Lincoln Mazda branch. ‘A number of manufacturers insist on inviting you to a specific location, which often requires one or even two days away from the business and is simply not practical. ‘At the same time, video conferencing allows managers to benefit from focused knowledgesharing sessions that don’t last more than an hour or two. Sharing best practice over a conference call keeps managers on their toes, and opens them up
to ideas that have worked at other dealerships.’ Neil Pursell of business improvement and training specialists Martec Europe, said: ‘As coaches we talk to a lot of managers who often tell us that they have to repeat themselves over and over again and still their people do not get the message. ‘Often, the person they are training is not tuned into receiving the message at that particular time. ‘There has to be a planned and communicated training moment with time set aside for nothing else but the training, regardless of what’s going on in the business at that time. You’ll find that when this happens awareness is heightened, students are looking to learn, they become more receptive and what you are teaching has a better chance to stick.’ Les Hammond, training director of Peak Performance, a leading supplier of corporate driver development, made an interesting point that perhaps is overlooked by many dealers. He said: ‘An important aspect of dealer operation, which rarely makes the training requirement list, is how to conduct a safe and productive road test in the company of a customer. Over recent years there have been several write-offs in these circumstances and at least a couple of fatalities. ‘Managing a demonstration drive well is a big responsibility and can hold the key to a successful sale. There are specific training courses for this crucial element of the sales process and it’s a wise investment.’ With thanks to... Steve Baker, mg.co.uk John Pitts, volvocars.com Greg Rigby, pendleconsultants.com Tim Smith, gforces.co.uk Neil Pursell, martec.co.uk Les Hammond, peakperformance.net David Orriell, mazda.co.uk Nigel Head, castrol.com
CarDealerMag.co.uk | 65
I’m delighted with the level of service I receive
As suppliers go, I have always found them very reliable
There were a few teething issues but we have a good relationship now
I’m always being let down by my manufacturer
It’s a great company to work with
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Get it off your chest with the awards scheme that puts YOU in the driver’s seat. Car Dealer Power gives you the chance to vote for the best manufacturer to respresent and share your thoughts on a whole range of suppliers to the motor trade. Find out more on pages 10-13 of this month’s magazine.
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Embracing the web is a culture thing Who’s ahead in the digital revolution, the UK or our cousins across the pond? The answer might surprise you...
I
t’s a common view that motor retailers in the UK are behind the US when it comes to exploiting digital technology. The USA embraces technologies more quickly and to a greater extent, with many innovations having been developed there. However, research undertaken by GForces highlights a rather different trend. Reviewing the top 50 auto retailers in the UK and the US showed that with 10 core digital technologies, the UK top 50 outperformed their US counterparts in all but two. The areas where the UK lags behind are video and blogging. In all other instances, the UK is ahead. This sounds good, but in reality, many UK dealers fall behind the US example. Deployment is only part of the picture; UK dealers must develop a cultural acceptance and effective utilisation of technology. Implementation does not give any advantage; quantifiable success only occurs when dealers use technology effectively. In the USA there is a better understanding about interaction with, and impact of, technology. This puts US dealers ahead of their UK counterparts. US consumers are also more likely to utilise the internet – especially social media –
so US dealers are deploying budgets to suit. The US AutoNation group has exploited Facebook – their Chevrolet arm building 14,000 ‘likes’ – trumping the UK where the top performers have fewer than 9,000 ‘likes’. Focused social marketing has helped, but technology has been crucial. Tools such as comment syndication and centralised social media control for automotive OEMs or multi-franchise chains haven’t truly emerged in the UK. In the USA they are widely used. Additionally, the US has a much better grasp of integrating internet and real-world sales experience by passing data seamlessly between websites and DMS or CRM systems. Despite numerous software providers in the UK, few look at how dealership systems (web, showroom, DMS) should interact. In the USA, dealership systems that are mutually compatible are far more widespread. Mobile technology has also been embraced by US dealers. The ‘always on, always available’ nature has fuelled mobile success, and the importance of this is understood in the USA’s car retail space. This maybe due to the OEM, region and dealer
hierarchy and enormous geography, but mobile search and the drive to localised search is a hot topic. The UK is only just coming to terms with this concept. This is made more relevant as a greater proportion of UK adults have a mobile phone – 91 per cent UK (Ofcom) against 85 per cent USA (Pew Internet) – and an ever-increasing number have smart platforms (42 per cent US and 51 per cent UK). This creates opportunities for advancing social interaction and, given the access to App stores, revolutionising how mobile automotive technology is exploited. UK dealers have embraced the technology perhaps faster and more aggressively than US dealers. However, the effective utilisation of the internet and its tools comes down to a cultural acceptance that they need to form part of everyday working life. This is where the US leads the UK.
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.
‘Mobile technology has been embraced by US dealers.’
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 | 67
NET GAINS.
..in association with Codeweavers
Explain exactly how you can help Finding out what your customers want – and giving it to them – is vital
S
urely the whole purpose of having a website is to try to capture the web customer’s attention and get them to contact you? After all, your website is available 24/7, whereas your premises are not. The easiest way to get customers to contact you is to give them what they want. However, there are still many dealer websites that don’t do this. I still meet dealers who won’t show the age, mileage or even the cash price of a vehicle, as they think it will encourage customers to call. It doesn’t. Customers have too much choice, and are faced by too many other similar ads. To stand out from the competition, I would recommend a different approach. Firstly, find out what your customer wants, and then give it to them. If you directly address their needs in this way then you are more likely to get contact from customers. Give them a reason to visit and then stay on your site by telling them precisely how you are going to help them and how they will benefit from dealing with you. This message should be jumping out at them. I’ve seen this done really effectively on some non-automotive websites – one site promoting outdoor clothing and apparel promised that ‘We’ll help you find great gifts for everyone this Christmas’. The need being addressed? The
Audi’s car configurator
‘Most car buyers will be more likely to buy if they can personalise their deal.’ annual problem over what to buy the family. It certainly made me click further, and that’s the whole point. Another way to increase leads is to add the proven Codeweavers services to your website. Designed to engage your customers and provide them with information on the affordability of vehicles, this is a service that customers value and make use of. It works because it allows customers to establish which cars they can afford and cars they can’t afford, as well as allowing them to make the most of their monthly budget. It’s giving people what they want and addresses a key need. Studies show that 65 per cent of car buyers will be more likely to buy if they are given the ability to personalise their own deal. It’s why every car manufacturer website has a
new car configurator – if you want to spec a car from scratch, you can do so, and this is always referred to as ‘My Audi’ or ‘My Ford’ – not anyone else’s, but mine. Again, another example of giving the customer what they want, and satisfying a need for consumers to form their own deal rather than the one they are given. The Codeweavers service allows the new car configurator approach to be extended to the financing of the vehicle. By allowing a customer to specify their own annual mileage, deposit and term of agreement the customer can establish the extent of their purchasing power and research the affordability of vehicles. They also stay on your website longer, which isn’t a bad thing, is it?
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.
FINANCE CALCULATORS PAYMENT SEARCH EMAIL LEAD GENERATION VIDEO CONTENT 0800 021 0888 www.codeweavers.net contactus@codeweavers.net
CarDealerMag.co.uk | 69
auctions.
Cabriolets hot in February, says Glass’s bit.ly/Cabrioletshot
Now vendors can be at more than one sale New online service from Manheim gets positive feedback
Silver’s still top BCA has released data on the most popular colours for used cars sold at auction at the beginning of 2012. Analysis of a sample of 40,000 vehicles sold during January reveals that silver remains the most popular colour, accounting for 29.5 per cent of the total, ahead of black at 25 per cent. Ever-popular blue cars accounted for 20 per cent, with grey in fourth place at 13 per cent. Red cars represented eight per cent of the total, with white and green each accounting for just under three per cent. More obscure colours such as yellow, orange, bronze, mauve, turquoise and even pink also featured but with very low volumes. Of the more popular colours, white cars achieved the highest value on average, selling for £9,752, compared to the overall average of £6,040, reflecting the fact that white is a fashionable choice on higher-value executive cars. The white cars were also younger (37 months) and had lower mileage (43k) than the average of 60 months and 58k miles. 70 | CarDealerMag.co.uk
auction stations
So what’s causing van prices to rise so sharply?
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M
anheim Remarketing has launched a brand new service that enables vendors to attend auctions even if they are not there! Called Vendor Online, Manheim’s latest piece of technology allows vendors to log on and ‘attend’ more than one auction at once to represent their vehicles as if they were standing on the rostrum with the auctioneer. The new service is designed to increase the participation of vendors who find it hard to attend auctions, and also improve buyer satisfaction thanks to quicker decisions and a reduction in provisional sales, says the firm. Vendor Online also provides audio and video of the auction as it happens and gives the vendor the option to click ‘On Sale’ once the bidding has reached an acceptable level. Andy Conde, group auctioneer, Manheim Remarketing, said: ‘Anything that can help the sales process at an auction is to be
Henstock
welcomed and Vendor Online does just that. Vendors who are unable to get to the auction can still represent their vehicles and make timely decisions as if they were there in person and that certainly meets with buyers’ approval.’ Mike Pilkington, managing director, Manheim Remarketing, added: ‘This enhancement to Simulcast is another first from Manheim and places us a step ahead of the competition. ‘It has been designed to integrate with existing sale-day operations so that auctions with attending vendors and auctions with remotely-attending vendors operate in the same fashion. We have already trialled this service with a number of vendors with very positive results and feedback.’
Twice as many franchised dealers visiting Manheim THE number of franchised dealers attending Manheim’s open auctions has doubled in the past 12 months. The auction firm says franchised dealers are attending open auctions in their droves in an effort to source used cars for their customers. However, dealers are having to adjust their normal age and mileage policies to justify attending auctions just to source stock. Mike Pilkington, managing director, Manheim Remarketing, said: ‘The increase in the numbers of franchised dealers attending Manheim’s open auctions has been evident since the beginning of 2010, but last year saw a significant jump. ‘It seems that franchised dealers may have realigned their age/mileage policies to justify attending open auctions in such numbers in an attempt to source stock to meet increased demand for used cars. ‘If the numbers of franchised dealers attending open auctions continues to grow at this rate then independent dealers will find they are facing more competition in the auction hall and online.’
he wholesale used van sector is going through interesting times. Our latest sales data for LCVs shows prices are rising across the board with values improving in January by £208 or 4.8 per cent month-onmonth, compared to average car values which declined by 6.3 per cent over the same period. The January average figure of £4,483 for LCV sales was the highest since May 2010 and continued the trend for rising values seen in the final third of last year. So what is driving the interest in vans currently? There is a range of factors, but all are linked to the economy and the fallout from the banking crisis. The used van market is directly affected by the activities of the major fleets and leasing companies, who buy vans new, operate them for a three- or fouryear period and then sell them into the used market. Following the crash, vans have generally stayed in service longer, been replaced less frequently and new sales fell as a result. Between 2007 and 2009, annual new van sales fell from 338,000 to 186,000. Although volumes have climbed back slowly (reaching 260,000 last year), it is estimated that the new van market will be around 350,000 units ‘light’ between 2007 and 2012. This means there will be 350,000 fewer desirable one-owner used vans reaching the market. This will have a number of knock-on implications for the LCV marketplace for years to come. The average vehicle age will certainly increase significantly and there may be a reduction in the overall numbers of vans on the road. As there will be fewer ‘first-time’ used vans coming to market, this will affect price and impact used LCV supplies further down the supply chain. The declining availability of cheaper, good-quality used LCVs is likely to have a direct effect on small businesses, partnerships and sole traders. Quite simply, there is a significant shortfall looming in the number of younger used LCVs destined for the market. And, as the economy improves, demand will, at times, probably exceed supply considerably. So vans could be a good profit prospect in the short to medium term.
‘The average vehicle age will certainly increase significantly’
Who is Simon Henstock?
Simon is UK network operations director for BCA. Visit british-car-auctions.co.uk or call 0845 600 6644.
SHARES.
Confidence at Vertu as order take runs 10 per cent ahead Pendragon too is making good progress despite continuing turbulence affecting the economy
BEST-EVER FEBRUARY FOR BMW
BMW has delivered nearly 240,000 cars to customers around the world since the start of the year
V
ertu’s order take for the March private retail market is 10.3 per cent ahead of last year, it has been announced. The good news comes in the dealer group’s trading update that was published ahead of its preliminary results for the year ended February 29, 2012. ‘While there is clearly significant work to do during the month to deliver a strong March performance, this order take position gives the board confidence,’ said the trading update. ‘In addition, progress continues to be made in delivering an enhanced performance from dealerships acquired in the last two years.’ The five months to January 31, 2012, also saw the dealer group grow its market share of the UK new car market. In contrast to a 8.5 per cent fall in new car registrations, that five-month period saw Vertu’s new sales volumes fall only 4.2 per cent on a like-for-like basis, and maintain its gross profit per unit on private new car sales. ‘CLEARLY DEFINED INITIATIVES’ Used car volumes also grew for Vertu’s dealers – in the five-month spell, volumes grew by 14.7 per cent overall, and 1.4 per cent like-for-like. Gross profit per unit was above £1k – a key industry benchmark – and generated a return on investment in used cars of 129 per cent. But it’s not just good news for Vertu’s dealers in the new car arena as fleet and commercial vehicle sales volumes rose 10.1 per cent like-for-like, and the gross profit per unit achieved on these vehicle sales was above the norm of £350 per unit. Aftersales was also an area Vertu grew its gross profits thanks to implementing ‘clearly defined initiatives’ in customer retention and workshop efficiencies. Training is also an area the dealer group is investing in to increase levels of customer service. Gross margins in service, however, have suffered in the five-month period. They declined in line with the strategy to attract more price sensitive customers with older vehicles into Vertu’s dealerships. Gross margins in the group’s bodyshops and parts supply operations strengthened, though, resulting in a higher overall aftersales margin of
BMW Group has reported its best-ever February sales result with 127,634 BMW, Mini and Rolls-Royce cars delivered worldwide. The figure is 14.2 per cent up on February 2011, and a total of 239,800 vehicles have been delivered to customers since the start of the year – an increase of 10.5 per cent compared with the same period last year. ‘February was another record month for the BMW Group,’ said Ian Robertson, member of the board of management of BMW AG, sales and marketing. ‘We aim to exceed our 2011 record sales in 2012 and to maintain our position as the number-one premium car company worldwide. ‘The new BMW 3 Series, which was launched worldwide in mid-February, will play an important role in driving further growth for the BMW Group. It has had an excellent start. Additional new models such as the luxurious BMW 6 Series Gran Coupé, which we unveiled at the Geneva Auto Salon, will also provide for
44.3 per cent compared to 43.0 per cent last year. Looking ahead, Vertu is confident of delivering growth in the year ending February 28, 2013. Pendragon, the UK’s largest dealer group, has reported pre-tax profits of £24m in its end-of-year announcement – more than double 2010’s profit before-tax figure of £11m. The group says the results reflect their ‘strong focus on strategic goals and internal operational initiatives’. Operating profit saw a 23.4 per cent increase from £63.2m in 2010 to £78m, while underlying profit totaled £30.8m– a rise of 22.2 per cent from £25.2m in 2010. Used car volume also grew; 2011 grew 14.4
further impetus in the second half of the year.’ Arch-rival Mercedes-Benz was keen to publicise its February result too. In the UK the German firm maintained its record 4.8 per cent market share in February and year-to-date. February 2012’s new car registrations showed an 11 per cent increase for Mercedes-Benz, to 2,933 new cars. The year-to-date figure of 9,182 vehicles is a rise of 17.2 per cent, compared with the first two months of 2011. Sales success has been shared by private retail customers and fleet users alike. A total of 28.5 per cent more Mercedes-Benz cars have been registered by private buyers YTD, while the fleet sector has risen 39.4 per cent. The new UK-only E-Class Executive SE has proved its popularity, contributing to a YTD increase of E-Class Saloon registrations of 21.2 per cent, to 1,400 new cars. Smart has seen improvements of more than 38 per cent for both the Fortwo coupe and Fortwo cabriolet.
per cent of a like-for-like basis, while basic earnings per share stood at 3.7p - 2010 was 0.6p. Underlying earnings per share were 2.3p in 2011 compared to 1.8p in 2010 : 1.8p. ‘Pendragon made good progress in 2011 despite turbulent economic conditions, achieving underlying profit before tax of £30.8m, an increase of 22 per cent over the prior year and over three times the underlying profit of 2009,’ said Pendragon’s chief executive, Trevor Finn. ‘The group has benefited from strong focus on maximising returns and the success of its self-help initiatives within its three key business sectors: aftersales, used and new.’
‘This order take position gives the board confidence’ CarDealerMag.co.uk | 71
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DATA FILE.
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Thestatistics Used Cars n Top 10 Searches n SMMT Sales Data
What’s hot and what’s not in used car sales G
lass’s has published its views on ‘what’s hot’ and ‘what’s not so hot’ in the used car market. Cabriolets, the BMW 6 Series, and late-plate Bentleys are the hottest cars in the used market at the moment, while luxury cars, 4x4s and cars fitted with an automatic gearbox are faring badly. Glass’s prestige car editor Richard Crosthwaite said: ‘Cabriolets are on the move and selling at quite a pace. The likes of TT, Z4 and SLK roadsters are seeing moves of two per cent. ‘However, it’s the 1 Series, 3 Series, A3 and A4 models that are showing the biggest leaps with sales up by an impressive four per cent. ‘Like last year, this spurt in the market may be over early by May or June, but if the sun comes out and the Olympic feelgood factor kicks in, we may return to the good old days.’ With high depreciation, a two-year old BMW 635d Sport auto ‘booking at at £28,600, 46 per cent of original cost new’ is Crosthwaite’s hot bargain of the month, while values are improving on late plate Bentleys due many new cars being allocated abroad and late plate stock being thin on the ground. However, luxury saloons sales are still
Market insight
Running costs are key
A
floundering. ‘Whether you’re looking at a 7 Series, an XJ, an S class or an A8, this sector continues to be one of the least loved and most pointless in the UK market. The one exception however is the Porsche Panamera, which after being on the car scene for two years can claim significantly better RVs than its competition,’ said Crosthwaite. ‘4x4s are also seeing significant erosion in values – most obviously to do with the lack of disruptive snow this year. Most are experiencing falls of between two and five per cent depending on model, and it seems the season is most definitely over. ‘Automatics have also hit the not list this month. With more automatic cars being registered than ever before, the volume is filtering on to the used car park, and whilst they continue to be a popular choice extra availability means premiums are falling back against manual counterparts.’
New vans channel is launched by Motors.co.uk MOTORS.co.uk has just launched a new vans channel, which replaces the firm’s sister site, vansunited.com. The moves comes in the wake of increased van registrations in 2011 and a bumper year for commercial vehicles, and traffic will be re-directed to the new vans channel on Motors.co.uk. New search
Kelleher
functionality has been developed, along with SEO landing pages and a new vans homepage, which is a simplified version of Motor’s used cars website. The new vans search tool utilises the same functionality as the used car and dealer searches on Motors.co.uk, via two tabs – Vans and Van Dealer.
ccording to the latest SMMT new car registration data, the Ford Fiesta was the best-selling vehicle in January 2012. Four of the other top-10 sellers were also superminis and the segment showed the largest rise in volumes during January. Interestingly, this consumer demand for superminis can also be seen clearly within the used car market. Whilst overall used-car advertised prices on our site are broadly stable, looking at the average price of Ford Fiestas advertised for sale in February 2012 relative to January 2011, we can see an increase in the advertised price of 16 per cent. This increase is significantly larger than the increase in the average advertised price of some of the Fiesta’s larger siblings. It’s the same at Vauxhall. The Corsa is up eight per cent over the last 14 months, but its larger stable mates, the Astra and Zafira, are up just four per cent and two per cent respectively. Indeed, for dealers selling Vauxhalls, whilst ‘small is beautiful’, selling larger vehicles would appear to be more difficult. This picture of increased demand for smaller, more fuel-efficient vehicles (and a relative decrease in the desirability of larger, fuel-hungry vehicles) is similar when looking at Volkswagen. The average advertised price of a Polo has increased by nine per cent between January 2011 and February 2012 whilst the advertised prices for the larger Passat and Touran are up just three per cent. Clearly in these economically uncertain times, everyday running costs are having a significant influence in new and used car purchases.
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 | 73
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 Mercedes-Benz 8 Toyota 9 MINI 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 Audi A3 9 Renault Clio 10 Audi A4 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 Peugeot 207 10 Renault Megane
‘Chancellor must use budget to give confidence a boost’ A further squeeze on living standards ‘must be avoided’
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ew car registrations fell 2.5 per cent in February, the latest figures from the SMMT reveal. Registration figures fell to 61,868 units – but the SMMT is still optimistic saying that although the market is ‘flat’, it is only 0.8 per cent down on last year. ‘The February new car market was broadly in line with expectations with a welcome increase in private retail activity,’ said Paul Everitt, SMMT chief executive. ‘The March market will provide a much better indicator of industry health than the relatively low volumes traditionally seen in February. It is extremely important that the Chancellor uses this month’s Budget to strengthen consumer and business confidence by encouraging private sector investment and avoiding any further squeeze on living standards.’ The SMMT says the private sector of the market ‘appears’ to have stabilised, up 2.1 per cent over the first two months of the year after a modest 0.6 per cent rise in February.
‘‘
The number of diesel car registrations rose by 4.9 per cent in the month, which pushed their market share to 53.9 per cent, up on 50.1 per cent a year ago. ‘Although the new car market was down last month, it is positive to see an increase in private registrations highlighting that consumers are slowly coming back to the market,’ said Sue Robinson, director of the RMI National Franchised Dealers Association (NFDA). ‘February tends to report a low market in unit numbers, particularly in retail sales, as consumers
Consumers are slowly coming back to the market.
wait for the plate change on the March 1. Encouragingly we have reports from dealers that there has been a small increase in footfall during February which we are hopeful will translate to an increase in sales during March. John Leech, UK head of automotive at KPMG, said: ‘Ahead of the forthcoming plate-change, fewer new cars were sold in the UK in February 2012 (year-on-year) which suggests that the UK economic picture remains somewhat uncertain and is making dealers more cautious than usual before taking investment decisions in staff and facilities.’ The Ford Focus, above, was the best selling model in February, ending an 11-month run at the top for the Ford Fiesta.
sales@motors.co.uk
0845 265 6000 www.motors.co.uk/mediacentre 74 | CarDealerMag.co.uk
..in association with
SMMT sales data Feb/year to date February 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
31 231 33 3,983 24 3,248 475 50 2,549 0 1,443 8,957 1,350 1,980 9 198 80 1,751 828 207 2 15 1,055 2,969 103 1,260 130 3,210 17 3,160 159 13 1,415 5 837 1,653 131 19 154 585 1,972 7,102 7,528 865 51 31 61,868
% market share
0.05 0.37 0.05 6.44 0.04 5.25 0.77 0.08 4.12 0.00 2.33 14.48 2.18 3.20 0.01 0.32 0.13 2.83 1.34 0.33 0.00 0.02 1.71 4.80 0.17 2.04 0.21 5.19 0.03 5.11 0.26 0.02 2.29 0.01 1.35 2.67 0.21 0.03 0.25 0.95 3.19 11.48 12.17 1.40 0.08 0.05
VAUXHALL -27.62%
CHRYSLER +177.78%
2011
Year to date (YTD) % market share
2012 % Change
35 284 39 3,783 13 3,577 310 18 2,499 0 1,343 7,542 2,049 2,032 15 227 44 1,563 651 73 59 11 1,282 2,661 8 1,173 311 2,881 18 3,052 110 25 1,807 160 820 1,690 170 0 83 820 1,956 9,812 7,569 740 64 45 63,424
0.06 0.45 0.06 5.96 0.02 5.64 0.49 0.03 3.94 0.00 2.12 11.89 3.23 3.20 0.02 0.36 0.07 2.46 1.03 0.12 0.09 0.02 2.02 4.20 0.01 1.85 0.49 4.54 0.03 4.81 0.17 0.04 2.85 0.25 1.29 2.66 0.27 0.00 0.13 1.29 3.08 15.47 11.93 1.17 0.10 0.07
-11.43 -18.66 -15.38 5.29 84.62 -9.20 53.23 177.78 2.00 0.00 7.45 18.76 -34.11 -2.56 -40.00 -12.78 81.82 12.03 27.19 183.56 -96.61 36.36 -17.71 11.57 1,187.50 7.42 -58.20 11.42 -5.56 3.54 44.55 -48.00 -21.69 -96.88 2.07 -2.19 -22.94 0.00 85.54 -28.66 0.82 -27.62 -0.54 16.89 -20.31 -31.11 -2.45
80 769 96 12,546 131 9,497 2,539 148 6,590 0 4,329 29,018 4,613 6,046 42 1,113 238 6,033 4,320 948 25 51 2,839 9,242 210 2,855 685 9,495 52 10,442 568 36 4,217 9 3,267 5,371 516 62 378 1,770 7,728 19,212 19,117 3,238 115 125 190,721
%market share
0.04 0.40 0.05 6.58 0.07 4.98 1.33 0.08 3.46 0.00 2.27 15.21 2.42 3.17 0.02 0.58 0.12 3.16 2.27 0.50 0.01 0.03 1.49 4.85 0.11 1.50 0.36 4.98 0.03 5.48 0.30 0.02 2.21 0.00 1.71 2.82 0.27 0.03 0.20 0.93 4.05 10.07 10.02 1.70 0.06 0.07
2011
Figures supplied by SMMT
%market share % Change
113 879 94 12,085 88 12,303 1,249 74 7,625 2 3,831 27,199 6,006 6,006 46 1,083 124 4,663 3,181 542 78 48 3,471 7,856 10 2,787 1,071 8,055 49 9,894 470 59 5,674 612 3,220 4,751 373 3 264 1,889 7,513 25,123 18,610 2,856 178 128 192,235
0.06 0.46 0.05 6.29 0.05 6.40 0.65 0.04 3.97 0.00 1.99 14.15 3.12 3.12 0.02 0.56 0.06 2.43 1.65 0.28 0.04 0.02 1.81 4.09 0.01 1.45 0.56 4.19 0.03 5.15 0.24 0.03 2.95 0.32 1.68 2.47 0.19 0.00 0.14 0.98 3.91 13.07 9.68 1.49 0.09 0.07
-29.20 -12.51 2.13 3.81 48.86 -22.81 103.28 100.00 -13.57 -100.00 13.00 6.69 -23.19 0.67 -8.70 2.77 91.94 29.38 35.81 74.91 -67.95 6.25 -18.21 17.64 2,000.00 2.44 -36.04 17.88 6.12 5.54 20.85 -38.98 -25.68 -98.53 1.46 13.05 38.34 1,966.67 43.18 -6.30 2.86 -23.53 2.72 13.38 -35.39 -2.34 -0.79
Smmt Has Removed The Following Brands As They Registered No Vehicles In The Uk In 2011: Cadillac, Corvette, Daimler, Dodge, HuMMER
CarDealerMag.co.uk | 75
data file.
Alex Goy
all torque
Safety rating will lead to plenty of Jeep questions
I
like being safe. It’s a nice feeling. Wondering whether the roof of my office is going to cave in on me isn’t a mental place I want to go to and I’m glad that thanks to building codes I don’t have to. I also like to know that if some moron decides that the laws of physics don’t apply to his driving or he has a sudden attack of narcolepsy at the wheel that my car will keep me safe in a cocoon of twisted, not-stuck-inme metal. We’ve all seen pictures of horrific crashes. Be they in the paper, on the web or right in front of us, they’re never fun. Such an image makes you think of your mortality and how to keep your own world intact. Having children also adds to the mix – how do you keep young Evisu as safe as possible? Naturally you’re going to be a brilliant driver, so Evisu will remain safe as long as you’re at the wheel. But, as a former editor’s other half used to say, never under-estimate the power of human stupidity. It’s human stupidity that will be keeping owners of shiny new Jeep Patriots awake at night. In a crash, according to various exaggerated news stories, your entire family is going to be killed if so much as a fly dings the offside wing mirror. In reality, it scored two stars in the increasinglydifficult-to-win Euro NCAP tests. I’m not dismissing the tests by any means – I’d sooner a five-star car than a two-er any day. The point of my diatribe on Evisu’s potential fate is this – if you’re a Jeep dealer you’re about to have lots of people asking lots and lots of questions. It’s time to bone up and offer some serious discounts if you want to shift some, chaps. In other news – this’ll be my last column for Car Dealer magazine. A job change is forcing me to work sillier hours and I’m afraid I won’t be able to keep scribbling and keep sane at the same time. Thanks to editor James for giving me the space to be me in the first place and to those of you who read and commented on my ramblings. I’ve had lots of fun, I hope you have too.
‘Jeep dealers are about to have lots of people asking lots of questions.’
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 76 | CarDealerMag.co.uk
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mini test: NISSAN GT-R
Auctions
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Central Car Auctions
Drymotive
Additional Income
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AutoProtect (MBI) Limited
Martec
The GT-R was always an impressive car both on the track and off it, but unbelievably it’s been improved for model year 2012. Taking the headlines is a 20bhp hike in power, while the suspension has also been set up asymmetrically to cater for the added weight of the drive in RHD – aiding stability and ride comfort. Gear changes have also been refined. It’s difficult to come to terms with how Nissan managed to improve what was already an astounding car. But somehow they have, and Nissan’s High
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Performance Centres will be pleased as there’s no doubting what owners of the 2011 GT-R are going to do. Price: £73,500, tested in Issue 45
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Finance
Valeting services
Warranties
mini test: INFINITI FX30dS
First Response
National Car Cleaning Company
WMS
Car dealer says HHHHH
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Infiniti has slipped a turbocharged diesel unit into the flagship SUV and it joins the 3.7-litre V6 and 5.0-litre V8 versions. The FX doesn’t drive as well as it looks. The ride is far too hard, and the 3.0-litre lump feels a little strained. That said, the gear changes are smooth, and the 360-degree camera is very useful. The driving experience is neither luxurious nor sporty. But the 3.0-litre unit does make a lot of sense in a car of this size – we managed 35mpg.
Finance
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Price: From £53,525, tested in Issue 45
Finance
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CarDealerMag.co.uk | 77
data file.
James Litton trader tales
Mystery shopping: Is it a worthwhile exercise?
D
espite having a reputation as being rather an egotistical bunch, car sales professionals do not enjoy watching themselves on television. I am not talking about appearances on Crimewatch – although there is no doubt that one or two deserve to be discussed by Nick Ross! I am referring to mystery shops. Mystery shops – when executed correctly – are an invaluable tool to monitor the performance of your sales team, business managers and the general showroom environment. For those unfamiliar with the concept, mystery shopping involves someone from within the company in question, or maybe a separate organisation, approaching a salesman or woman with the intention not of actually buying a car, but evaluating the level of service offered to potential purchasers. However, when mystery shops are poorly conducted, they provide no insight, waste time and perhaps most importantly, undermine the credibility of the whole idea. I have seen many recently where the content of the conversations is so general and predictable that the mystery shopper is easy to spot. The sales person then acts unnaturally as they try to remember the cues and scoring points. Whilst I do not expect an Oscar-winning performance from the shopper, I would expect the buying behaviour to reflect that of a serious enquiry. To take this one step further, I would like to see mystery shoppers target weak areas of the respective business. For example, there is little value in sending a mystery shopper in to talk about a general used car purchase if the dealer concerned has poor finance penetration. Similarly, having your star performer shopped is less important than having the inquiry directed at a consistently poor performer. Regional representatives should work with directors or dealer principals in developing briefs to improve weak business areas or individuals and I am sure the value of the exercise would grow dramatically.
‘I would like to see mystery shoppers target weak areas.’
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
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
Perry Beaver 0116 254 1717 perrybeaver@sturgesscars.co.uk
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. 78 | 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
Lookers Park Royal
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
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
Richard Walker 07748 177889
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
Dave Cooper / Steve Gurr 07831 704134 07921 408983
Jerome Chandiram 0208 845 3551
parkroyaljaguar@lookers.co.uk 0208 938 1300 07534 927 821
Mike Mongiello mikemongiello@sturgess cars.co.uk 0116 282 6969
Land Rover
mini test: VW AMAROK
Lotus
Maserati
Beadles Land Rover
Car dealer says HHHHH
Murray Motor Company
Meridien Modena
Greg Wilcox g.wilcox@beadles-landrover. co.uk 07740 717209
This shakes up a sector dominated by the Japanese. There are a few gripes but otherwise it impresses.
Brandon Ware 0131 200 8888 0750 326 0186
Warren Butt 02380 283404 07860 530703
Price: £22,533, tested in Issue 45
Maserati
Mazda
Mini
Want this spot?
Nissan
HR Owen
Lifestyle Mazda
Vines Group
Your advert here
Nissan
Toyota
Volvo
General
Hyundai
Want this spot?
Currie Motors Toyota
Sturgess Volvo
Barry Freedman
Sturgess Hyundai
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
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!
Perry Beaver perrybeaver@sturgess cars.co.uk 0116 2541717
Sturgess Nissan Perry Beaver 0116 254 1717 perrybeaver@sturgesscars.co.uk
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 | 79
Your success is our reputation
2012 has seen JGA entering our 25th anniversary; the ethos on which we built our business and which has been instrumental to our success is probably truer today than it ever was. Going the extra mile, paying attention to the details and understanding the needs of our candidates and clients – it’s these principles that have kept us at the forefront of automotive recruitment and ensure our commitment to providing excellence.
We take pride in your business
Web: www.jgauk.com
Tel: 0845 644 3003
THE LOCAL, REGIONAL, NATIONAL AUTOMOTIVE RECRUITERS
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Need a Key Piece?
Dynomec Ltd · Unit 5 · School Street · The Potteries · Castleford · West Yorkshire · WF10 1NZ
08450 212123
www.justcarjobs.co.uk
data fiLe.
Consider sub-prime and your business will reap the rewards W
ho would have thought the majority of Brits would be too cynical to turn down free cash? Particularly at a time when the cost of living is going up and disposable income is decreasing. These were the findings when a group called Ice (a consumer reward programme) completed an exercise where people were positioned at bus stations up and down the country wearing sandwich boards reading ‘Ask me to pay your bus fare, and I will’ in an attempt to get commuters to stop, talk to them and take up the offer. The response rates countrywide were poor, which left them concluding that as a nation, when something seems too good to be true, we are cautious and suspicious, often to the detriment of the pennies in our pockets. Now this is only one piece of research, but something which is appropriate to the opportunities and offers which lie ahead for you over the coming years. First Response Finance has been lending within the sub-prime market for more than 14 years, working with dealerships and groups all over the country in an attempt to offer them a different option to sell a vehicle when their first or second line of finance will not approve the customer. Unfortunately sub-prime lending has always had the ‘dirty word’ connotations, and this has not been helped by some irresponsible actions within the industry. But that level of thinking does not have to exist any more! Regrettably, for large parts of the population, nasty things have happened to nice people which makes purchasing necessity items such as cars harder, as banks and prime lenders have tightened their purse strings.
Jonathan
Such TIME IS MONEY
First Response Finance not only gives you the facility to attempt to gain an approval on this customer, where others in the marketplace wouldn’t, we also want to help your business grow. Our superb relationship with Car Dealer magazine enables us to communicate to the industry with two published articles each month, where we publicly offer our help and assistance to car dealers nationwide. Only last month a dealer group responded directly to us asking for support so we gladly sent one of our business development managers to see them to understand how we could help increase their sales in 2012.
‘When something seems too good to be true, we are cautious and suspicious.’ As a partner with this group, we have worked together to launch a new marketing campaign which includes a new website and paper advert aimed at sub-prime customers, explaining how easy it is to obtain a new vehicle. This new strategy is aimed at complementing their existing business, and the success is easily measurable. The offer of sub-prime lending and support from our sales teams does seem too good to be true, but more dealers are beginning to believe and are letting the suspicions and caution disappear. Don’t give up the offer of additional cash... contact us today.
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 82 | CarDealerMag.co.uk
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