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Issue 54 | September 2012 | CarDealerMag.co.uk | ÂŁ3.50
gg
Bi
BRAWN
COCKTAIL
Group test
Featuring the new Vauxhall Astra VXR, Ford Focus ST and some old favourites
Awards special in association with G-3 GLasscoat
Who did you rate as the best in the business?
Has Toyota killed the hot hatch with its new GT86?
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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 Advertising EXECUTIVE Natasha Smith natasha@blackballmedia.co.uk Twitter: @CarDealerTash
Contributors Mike Jones, Big Mike, James Litton, Tim Naylor, Tim Smith, Tim Heavisides and Jonathan Such
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the top of the Welcome. At Spinnaker Tower in
Portsmouth, the great and the good of the UK automotive world celebrated their Car Dealer Power Awards victories last month with us – and it’s all thanks to you. Our awards are the only gongs voted for by those who matter most – you, the dealers – and this makes winning one for the successful manufacturers and suppliers even sweeter. Running a car dealership is a tough job, so ensuring you’re working with the very best partners is extremely important. It can help things run smoothly and bolster profits – which, in tough times like these, is vital. This year our Car Dealer Power survey attracted 1,000 responses from dealers both large and small. It was run online for five months and many car manufacturers took it very seriously by actively promoting it and pushing it out to their dealers. There were some interesting movements in this year’s survey. Some manufacturers have plummeted from the dizzy heights of the podium, while several remain languishing at the bottom. Even after a year of being able to address the problems our survey threw up last year, manufacturers such as Chrylser are still propping up our table. That’s extremely disappointing. There’s a new manufacturer taking first place this year too. In fact, the top three manufacturers have all superseded last year’s podium placers. Meanwhile, for 2012, we also expanded the Suppliers section. There were a number of reasons for this. Firstly, we wanted to split up some of the main categories to better represent the diverse services that the different
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3,260 people have it – have you?
companies offer. Secondly, Car Dealer’s 12,000 readers are not all franchised outlets so the Suppliers category is the part of the survey every one of you can relate to. We have absolutely no say in the awards whatsoever – we simply give the manufacturers and suppliers your good news! And the feedback on the night was that they were all very grateful for the votes you gave them. Find out who received our coveted gongs from p61 onwards. SPEED THIRLLS I love hot hatches. Always have done, always will. Which is why testing the corkers on our cover made my birthday a very pleasant one indeed. Hot hatches have always offered thrills with some practicality thrown into the mix, which means they appeal to a wide range of buyers. But now Toyota – and its development partner Subaru – have thrown a spanner in the works. Ok, so the GT86 and BRZ sports cars might not be practical, but they’re around the same price as these hot hatches and offer rear wheel drive fun and a fine chassis too. Many hot hatch buyers will be considering one of these fun machines too – so we wanted to see whether it had the minerals to take on the established elite. The problem with this test was it was nearly impossible to work out a winner. Read Batch, Dunc and I argue about our favourites from p44 onwards. Enjoy the issue.
James Baggott, Editor
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CarDealerMag.co.uk | 03
Join Car Dealer Club by visiting CarDealerClub.com Members get free legal advice worth £195 for a £39.99 subscription
INSIDE. ISSUE 54 I september 2012
dashboard
44
New contender
Is GT86 a hot hatch alternative?
27
36
Honda monster Firm’s biggest dealership
Rapid
Dealers are setting themselves up for a disaster.
£50 Car Challenge Is Brewer bouncing back?
08
Pre-reg investigation
10
Holiways in administration
16
Audi’s digital dealership
19
New look Bangers4BEN
21
That Was The Month
22
Honda’s huge dealership
27
Finance
28
Around The World
30
Big Mike
33
Car Dealer Club
34
forecourt
Inside story on new Skoda
‘‘ 89
Chevrolet plans scaled back
Special pre-reg investigation
10
Skoda Rapid
36
Chevrolet Cruze SW
38
Volvo V40
40
Mito & Prius Plug-In
42
features Hot hatches v Toyota GT86
44
Kia’s car park dealership
58
Car Dealer Power
61
Guide to a Better Workshop
85
£50 Car Challenge
89
DATA FILE
61
Car dealer power Winners and losers revealed
a month in A picture...
Can you spot the epic journalistic fail in this tracking shot of the legendary Golf GTI? Batch was despatched to bag some moving shots of the model as part of our cover feature and sort of forgot his little Moleskin notebook was on the roof. Unbelievably, it clung on up to about 50mph before committing suicide under the wheels of a 40-tonne artic. Batch managed to find it, but it’s now a bit scarred.
Top Tips: Team work
91
The Statistics
92
Right Click
95
Auctions
97
Auto Trader
99
Net Gains
101
Suppliers Guide with Batch
102
Trader Directory with Litton
104
Long Termers
106
Workshops
108
Shares
110
Time is Money
114 CarDealerMag.co.uk | 05
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Car Care Plan Limited is authorised and regulated by the Financial Services Authority.
feedback. Your comments via email at james@blackballmedia.co.uk | From our website at CarDealerMag.co.uk | And from Twitter: Follow @CarDealerEd
Horror of the crusher loomed THIS morning I was shocked to find a clamp on one of our vehicles, with a leaflet from the DVLA stating our vehicle had been clamped for not being taxed or having SORN. We dived into our paperwork to check the vehicle had been marked passed to trade with the yellow V5 slip, which of course it had. I got on with my normal day of appointments, thinking I would call the DVLA later to have them remove the clamp. As I was finishing with a customer I saw a DVLA tow truck ready to take my car to the car pound or crusher. I jumped in and sat in the car as I knew they wouldn’t lift me. After a heated discussion with the DVLA chaps about how motor dealers don’t have to mark cars SORN, I got out my iPhone and Googled ‘do motor dealers have to SORN’ which took me to a DVLA document INF55 which says: ‘How does a SORN affect me as a motor trader? You do not have to make a SORN if you keep vehicles temporarily in the course of your business. You would qualify as a motor trader if you are a motor dealer (including the holder of a trade licence).’ I pointed out my showroom and forecourt, with 30 or so cars. ‘We shall have to call the police if you don’t get out of the car,’ they said. I said that’s fine. The DVLA team seemed shocked at my willingness to have the police called and that I was willing to call them myself to report trespass. After a 60-second call to their boss, they removed the lifting machine and said sorry. The clamping team seem not to have checked to see if the car had been passed to trade or seen it had a sales board, or that it was next to a few other cars parked outside a showroom. I hope in a few weeks I don’t receive some automated fine or come back in the morning to an empty forecourt. Nicolas Raimo Luigi Motor Services, Disley, Stockport
twitter comments The Twittersphere’s reaction to news dealer group Holiways has been placed in administration. Full story on p18. Possibly geographical? Two towns not exactly on the up, in need of investment. Shame, well known name of a long time. Newton Aycliffe. A small town, lived in the shadow of Darlington. Hartlepool not so bad. Via @NeillWatson Up here we have Evans Halshaw Ford in Darlington, too, and in boro near H’pool. Too much competition? Via @John_Slavin
have tried to broker a deal with the big boys rather than let them go. Must be insurmountable. Twitter DM, identity withheld on request
Ford normally intervene and move the business onto to a large group, as do most mfrs bar the French. Via @gazthevanman
These days it only takes missing your support bonus to send you over the edge. I went for a job as sales manager for a big Ford dealer. They structured deals to lose £30 on each Fiesta sold! Twitter DM, identity withheld on request
Bad advert for Ford, would’ve thought they would
Quick change and an award Attending the Car Dealer Power Awards, we at Contact Advantage were nominated for Best Dealer Management System. Often these awards are fairly dreary but last night not so. We arrived at the Spinnaker Tower in Portsmouth in the nick of time to change into a dinner suit and an evening dress in the highly illuminated car park! At the top of the tower, we enjoyed the company of the two Jameses and along with Dave, Duncan, Jade and Natasha, we were in prestigious company with BMW, Kia and Skoda all in for awards. Mike Brewer from Wheeler Dealer fame was present, along with a magician who forked about
with Jade’s cutlery creating a new implement which looked capable of teasing a Rastafarian’s dreadlocks to good effect. A good evening was had by all and thanks go to all at Car Dealer magazine and everyone who voted for us at Contact Advantage. Bob Feltham Contact Advantage Ltd I wanted to thank you for a great evening on Tuesday. It was well organised and an ideal venue. Of course winning the award made it a very special night for us. Thank you and well done. Tony Whitehorn President and CEO, Hyundai Motor UK Ltd High Wycombe
MY CONFESSION
Getting the message AS WE all know, some days drag a little. Think about those long Tuesdays during the winter months when no-one comes in. There is only so much eBaying and Facebooking you can do. In my dealership, we try to pass the time by playing practical jokes and generally messing around. Yes, I know, we should be going through the DMS system and calling people, trying to actively sell, etc. But some days, that’s just not on the agenda. There is a service provided by telecoms people that allows you to send text messages to landlines. It reads the message out Stephen Hawking-style to whoever picks it up. Hours of fun! One day we thought we’d try it on the parts
manager – anything to interrupt his constant staring into the workshop, reminiscing about his recent holiday to Spain. I prepared the text. It basically said that it was an automated message from the ‘clinic’, that his results were in and they were positive. We sat in the tea room and watched out the window. He answered, getting the joke off to a good start, then stood and listened to the news from our makebelieve clinic. Then, however, things took a slightly darker turn. He dropped the phone from his ear, held his head in his hands and started crying uncontrollably. Everyone in the workshop turned to see what was going on as he shouted: ‘Why???!!!! Please God, don’t
let this be true!!!!’ We stopped laughing and held our hands over our mouths in shock. He ran out of the workshop, straight to his car and sped off. ‘Hmmm, I saw that going a bit differently in my head,’ I said. It turned out that his recent holiday to ‘Spain’ was actually a cover for his annual seedy trip to Thailand. After an hour or so, he came back with an angry look on his face. He’d been to the local clinic where he had been tested a week before to find out they don’t do automated messages. Thanks to that phone call, we all found out the truth about Dave’s ‘holidays’ and he gained a new nickname – seedy Dave. DG, Bolton CarDealerMag.co.uk | 07
DASHBOARD.
Heavisides
warranty wonders
Dealer community has something to celebrate
Tweet: Peter Vardy opens training academy bit.ly/Vardyacademy
Unlucky number 13 puts brakes on Chevy’s Irish plans
A
s you’ll read elsewhere in this edition, the Car Dealer Awards were another great event from the team and our congratulations go to all who were nominated and to those who won an award. On behalf of those shortlisted, I’d like to thank all the dealer teams who voted in this year’s survey. Without the support and input from the dealer community it wouldn’t be the success it has become. The outstanding levels of response that James and the team achieve each year are a tribute to the passion and enthusiasm that exist at all levels of our industry and it’s encouraging to see people getting involved and giving their feedback. Car Care Plan was delighted to pick up the Innovation of the Year Award this year for cosmetic warranty, in a market that’s already packed with innovation and fresh products. We’re particularly pleased to have brought a concept to dealers that stands out and genuinely offers something different. Away from the awards themselves, the real success of this event is the level of feedback that dealers provide to Car Dealer about manufacturers, suppliers and partners. As a key provider in the industry, we’re constantly changing our approach to make sure our products and services meet with dealer and manufacturer expectations and are able to support our dealer partners when they talk to car buyers. Feedback mechanisms such as the Car Dealer Awards are key to this process. In uncertain times, it’s encouraging to celebrate success in the industry. New car sales might be down and the used car market is still a little bit quiet but there are dealers and manufacturers who are able to make the best of the situation and there are more of them than you might think. It’s encouraging to see that there are suppliers who can help improve those positions further. The market might be unsteady but there are plenty of products and services from some outstanding providers that can help make up some of the shortfall. And that’s cause for celebration.
‘Tribute to the passion at all levels of our industry.’
Who is Tim Heavisides?
Tim is CEO of Car Care Plan, the UK’s leading provider of motor warranty and GAP products. 08 | CarDealerMag.co.uk
Chevrolet UK’s desire to take over Ireland operations on hold
C
hevrolet UK may need to ‘back off a little bit’ in its move into Ireland, the firm’s boss has told Car Dealer. In March, the American brand announced it would be taking on direct responsibility for selling Chevy cars and parts in Ireland, and the current sales network would be fully backed by Chevrolet UK and not a private importer. But a difficult Irish economy and superstitious buyers may be a problem for Chevrolet in 2013, believes the firm’s MD. ‘We are ready to go from a technical, government and registrations point of view, and the dealer network is in place,’ Mark Terry, exclusively told Car Dealer. ‘We have continued to a partnership with 10 of the existing dealers that were there before but, honestly, the Irish market is very tough. ‘This year the Irish new car market is not reaching anywhere near the forecasted predictions. Next year, given the numberplate change to ‘13’ and the superstitious associations with that, the industry governing body is suggesting that 18 per cent of customers will decide not to buy a car next year just because of the 13-plate. ‘That is on top of an already depressed market. Is this the time to be making a
heavy investment in this market? Well, we’re not sure.’ However, Terry did offer some comfort to Irish customers, adding: ‘We will certainly continue our ambitions in making sure we have a service network and we take care of our existing customers, but it maybe the case where we need to back off a little bit, make sure our dealers are okay, weathering the storm, and waiting for the market to come back. ‘That may not be next year – we will have to keep an eye out on the economics and market dynamics. My overall message is we’re still serious about getting into Ireland, but we will be watching it very closely due to it taking a bit of a turn that I don’t think anyone was expecting.’ Chevrolet Cruze SW, p38
Volt coming soon? INITIALLY just four Chevrolet models will be available from Irish dealers – Spark, Aveo, Cruze and Captiva – but Terry hinted that he could see the Volt E-REV being added to that soon. ‘We would introduce Volt if the investment is right. Ireland is interested in EVs, but not to the same extent as the UK,’ explained Terry. ‘Once we get a sense that the investment is worth making and we can ensure the dealer can supply the right technical services to customers, we would go ahead.’
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.
Pre-reg problems? Pre registrations have always happened, but recent murmurs have thrust the practice back into the limelight. James Baggott investigates what all the fuss is about
I
t was a small but significant statement, tucked away in Vertu’s trading update to the stock market, that saw the scourge of pre-registering cars rear its ugly head again. The chairman of the ninth biggest dealer group in the UK, Paul Williams, told the City: ‘The market is witnessing increased levels of self-registration by UK dealers, which is inflating registration data compared to sales levels.’ What Vertu was referring to was the monthly SMMT sales data, which has led many to believe new car sales have risen for the last five months. In June, the SMMT reported sales up 3.5 per cent and last month it rose again even further by 9.3 per cent. But it’s these official figures that many are beginning to doubt. There are claims that unreported pre-registrations by dealers are artificially inflating the numbers and skewing the view that many – including the government – have of the motor industry. Glass’s Guide editor Adrian Rushmore has spotted the trend and warned that dealers preregistering cars to hit targets could be setting themselves up for a ‘disaster’. ‘We could be going back to the situation in 2007, when there were more one-year-old cars being advertised than three-year-old cars,’ Rushmore said. ‘If the market does go into reverse, it would be a crying shame because we would then start to see the value of used cars tumbling as well. And it would be a disaster for dealers because there is less margin in a one-yearold car than in a three-year-old.’ But these fears haven’t stopped many dealers pre-registering cars to meet manufacturer targets. Car makers set quarterly sales targets for dealers and the margin on the cars they sell rises in proportion to the units shifted. Dealer group boss Peter Vardy told us: ‘Manufacturers set big quarterly targets and the bonus they pay if you hit them goes all the way back to the first unit sold. ‘So, if your target is 300 cars and you get, say, £250 per car if you register X, or only £200 a unit if you register X under it, for some dealers it is worth pre-registering the remaining cars to hit 10 | CarDealerMag.co.uk
Buyers are being faced with tough decisions in showrooms now target – especially if they’ve banked on getting the £250 a unit from the beginning of the quarter.’ While Vardy said there’s nothing wrong with that initially, it’s the knock-on effect that gets many traders into trouble. ‘The problem is the manufacturer sets another target for the next quarter but the dealer then has a field full of cars that they need to get rid of – it’s an ever-worsening circle. It’s short-term gain for long-term pain,’ he said. Vardy – who said he never pre-registers cars – told Car Dealer he believes the only way to get out of trouble is to step out of the new car campaigns for a quarter. ‘But that takes a very brave business decision,’ he told us. ‘Both dealers and
manufacturers are to blame. The manufacturer targets are a bit strong – they think the market is a lot better than it is – but the dealers shouldn’t be taking the bonuses either.’ Of course pre-registrations are not a new phenomenon – they’ve been going on for years – it’s just now, with the economy as it is and many dealers struggling, that it’s been highlighted again. It’s such a thorny issue at present that many contacts Car Dealer spoke to didn’t even want to be named. One such contact was a new car broker who was vehemently against the way the SMMT reports new car ‘sales’. ‘The problem is the SMMT take on trust the manufacturers’ reported official pre-reg figures
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Audi may have cleaned up at Le Mans, but did the Nissan DeltaWing steal the limelight?
and they are laughably low – in the last stats I saw they reported something like a total of 260 preregs across all brands. I think if you multiplied that by 20 or so you may be nearer a believable figure,’ the broker told us. ‘When challenged about the inclusion of such laughable figures and about the dealer-derived pre regs, the SMMT give a feeble response. They say they can only report what manufacturers feed them and therefore journalists report that to the public as fact, as
‘‘
It will be a disaster for dealers as there is less margin in a one-year-old vehicle.
they trust the SMMT. ‘Yet the SMMT makes no effort to validate this data. Of course a manufacturer won’t report large figures of pre reg – it would kill residuals and brand credibility. ‘The total lack of dealers’ own pre-regs in the figures is something which the SMMT again shy away from as they have no measure. The view at the moment is that if they cannot measure a large part of the numbers needed to compile
the stats then don’t issue them as UK stats – they are meaningless. The public and journalists are getting a pile of crap in the form of official car sales statistics.’ The broker added that the unauthorised pre-reg problem is ‘huge’ and that they believe it always will be when manufacturers are turning a blind eye. Pre-registrations come in two forms. The first is supported by the manufacturer and is usually used to shift large volumes of cars in a hurry – such as a run out of old stock before a new model arrives. The second, and most common, according to our broker, was the unauthorised type. These are easily spotted as the dealer has to hang on to the V5 for typically between three to six months. Our broker source explained: ‘Pretty much anyone can register a company purporting to be a car rental/hire company. That company then applies to manufacturers for fleet discounts. The discount is given freely on the basis of the size of the “fleet” the company claims they’ll be ordering. The people setting these companies up are usually brokers or even dealers under an assumed name. ‘The manufacturer says in the contract that the company promises not to re-sell them within the first three to six months. As the company was never really going to hire them out, those cars then appear at mega cheap prices on a broker site, but hidden in the small print (or sometimes not even declared at all) is that the logbook will have to be “withheld for auditing purposes” for – you guessed it – three to six months. It’s laughable.’ OK, so it’s been going on for years and distorts the view others have of our industry, but what’s the problem? Well, there isn’t one, according to some. Kevin Watson, of trade-to-trade site Autotrade-mail.com, said he’d like to see MORE pre registering! He told Car Dealer: ‘The market needs more used cars in it – and pre reg is one way of getting those cars. Manufacturers have huge factories that they can’t have idle so the supply continues, but they simply need to incentivise dealers more to take pre-reg cars. ‘The SMMT figures have always been out – they’ve never been a true reflection on the market. So I can’t see the problem – at the end of the day, a pre-reg sale is a servicing customer for the future… and one less that is spending with a rival.’ He’s got a point. So what do the SMMT say? Are they worried they are reporting figures that look up when in reality those new car ‘sales’ may in fact be sitting in a field? SMMT chief executive Paul Everitt said: ‘The extent of dealer self-registrations CarDealerMag.co.uk | 11
dashboard. is clearly the subject of much discussion and its impact on the total market is particularly emotive during the regular commercial negotiations undertaken by vehicle manufacturers and their dealer networks. ‘I understand that our presentation and interpretation of the monthly registration data may not always suit all players, but it is accurate and reliable. ‘The SMMT publishes monthly data that is sourced from the DVLA and captures all vehicles registered during the month. I am confident this provides an accurate record of all registrations. SMMT figures do capture all the vehicles that Buyers have to a dealer or manufacturer registers either for decide between customers or on their own behalf.’ new and nearly Everitt added that manufacturers were subject new cars to the conditions of the Supply of New Cars Order (2000), which provides a ‘clear definition of classifications: Private, business or fleet.’ a pre-registered car’ and requires manufacturers And it’s this last bit that worries some in the to report monthly on the number they have industry. If dealers can choose which channel registered that meet these criteria. they report registrations in, the retail car market, He added: ‘The SMMT publishes this data which the government keeps a close eye on, looks monthly. In most months this is a relatively low better than it actually is. number of vehicles. A chief executive of a top 10 dealer group – ‘Vehicles that may be self-registered by who didn’t want to be named for fear of reprisals dealers will be included in the data, but they are – told Car Dealer: ‘The issue is not the level of prenot separately identifiable. Dealers choose to reg but the way a lot is being classified as retail ADVERT FOR PRINT.pdf 1 10/07/2012 12:25 allocate themLOOP to one of the three main sales-type and not fleet. This overstates consumer demand
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for the government and leads to high targets for dealers in the future – there is then a cycle of pre-reg entered into. It absorbs cash and has a major negative impact on the used car mix.’ What do you think? Is pre-registration really a problem? Are dealers to blame or is it manufacturers setting too high targets that is causing issues? Let us know by tweeting the editor @CarDealerEd or emailing james@ blackballmedia.co.uk. Litton on pre-reg, p104
No better recommendation than word of mouth Satisfied customers? Shout about it. Download and display your real-time ratings. www.motorcodes.co.uk
DASHBOARD.
Mason
CRAcKING THE CODE
Now it’s time to deliver a return for all your effort
I
n the six months I’ve been giving my layman’s perspective on using the web and associated marketing tools effectively, talking about how to benefit from things like the trickery of search engine optimisation, I’ve seen staggering results. All the talk of link-building, widgets, online ratings, profile page promotions, the lengthy list of requests made of dealers to change the way you work with Motor Codes and the efforts put in by a huge number of you uploading, downloading and the like . . . it’s worked! Primarily, in the shape of increased traffic to motorcodes.co.uk but, more importantly for all of you who have taken time to get your Motor Codes profiles up to date, in the shape of increased service and repair business. Buoyed by the sharp increase you’ve been able to help us generate in terms of traffic to your garage profile pages, I mentioned a new call monitoring service that we are bringing in last month. Bristol Street Motors, who volunteered to trial the service with us, can attribute £117,000 worth of new business over the past few months to referrals from Motor Codes – people seeing a dealer’s profile page, reading customer reviews, picking up the phone and making a booking. Driving business to committed subscribers to the codes is our primary objective – we’ve proved to the government that the service and repair industry is a sound one – now we move to delivering a return for all of you who’ve invested in the effectiveness of Motor Codes. As a result of the success of the Bristol Street trial, we’ve rolled out the call monitoring scheme to the whole Motor Codes network. You’ll all have received notification and instructions on how to track the number of calls that your Motor Codes profile page delivers to you. If you make use of Motor Codes – asking customers to complete our survey, reviewing your customer service via our website, updating your profile page – you’ll be able to use this marketing tool to quantify what Motor Codes is worth to your bottom line.
‘Quantify exactly what Motor Codes is worth to your bottom line’
Who is Chris Mason?
Chris is managing director at Motor Codes, the government-backed, self-regulatory body for the motor industry. 16 | CarDealerMag.co.uk
Dealer Holiways in administration as recession bites Despite selling two sites to Vertu, dealer group hits the wall
D
ealer group Holiways – which runs Ford sites in Bishop Auckland and Newton Aycliffe – was placed in administration in the first week of August. The company’s website was taken down and instead a statement from the administrators was displayed. It read: ‘Mark Firmin and Howard Smith of KPMG LLP were appointed joint administrators of Holiways Limited on 7th August 2012. ‘The affairs, business and property of the company are being managed by the joint administrators.’ Ford is currently riding high in the new car sales registrations figures – its Ford Fiesta alone commands a 5.6 per cent share of the new car market in the UK, which makes this announcement even more shocking. The dealer group sold sites in Durham and Hartlepool to Vertu Motors in the weeks leading up to the administration in an attempt to shore up the business, but
Special badge offer DEALERS are being invited to take advantage of a very special offer from the UK’s largest badge manufacturer. Badgemaster is currently celebrating its 20th anniversary, and to mark the occasion the firm is offering a 20 per cent discount off list prices for all orders placed by September 20. Name badges are an important tool for dealers. Making sure staff wear professional branded badges can pay dividends in terms of customer service. Many changes have happened since Badgemaster started trading from a portable cabin in July 1992. Most notably, founders John and Vicky Bancroft have steadily grown their workforce to 88 full-time staff at the company’s state-of-the-art facility in Newstead, Nottinghamshire. To receive the 20 per cent anniversary discount off list prices for name badges, customers just need to quote 20YEARS on their order before September 20, 2012. Call 01623 723112 or visit badgemaster.co.uk.
it appears not to have worked. Newspapers in the area reported the dealer group – which is likely to make many of its 81 staff redundant – slashed the prices of its cars in the weeks leading up to the collapse. Administrator Firmin said: ‘It is unsurprising that during a recession, a relatively rural car retailer has struggled. ‘Despite a restructure, which saw Holiways sell two dealerships in recent weeks, the significant losses incurred by the business through the summer means it simply could not continue to trade.’ Car Dealer contacted Ford for comment but a spokesman from the manufacturer said he couldn’t comment further.
Dealers desired SSANGYONG Motor UK wants to add at least another 15 dealers to its network by the end of the year, the firm’s CEO has told Car Dealer. SsangYong Motor UK CEO Paul Williams said his team was looking for more dealers to add to its expanding franchise network, and he is aiming to add another 15 outlets, at least, by the end of the year. Williams said dealers joining the network would need to invest around £10k and could select their incentive bands. In August the firm announced it had appointmented 10 new dealers, bringing the current total to 48 sales and service sites and 11 service centres. Williams said: ‘We offer dealerselected objectives, competitive and straightforward margins, all backed by a good parts supply. We like to keep things simple.’
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Audi cam brings servicing to the small screen bit.ly/Audicam
Audi dealer goes digital New site uses technology to showcase huge range, reports James Batchelor
A
n ever-increasing model range is just one of the reasons why Audi has turned to the virtual world to present its new dealership in central London, the firm has told Car Dealer. The brand has opened a new retail space in the capital that relies not only on car models on display, but large digital screens to present a virtual Audi world. ‘There are three key reasons around the creation of Audi City,’ an Audi spokesperson exclusively told Car Dealer. ‘The first is that due to the expansion of the Audi range, it is not possible even in our largest showrooms to display the whole range. ‘Secondly, our target market often lives and works in large cities like London and it is not possible to build large showrooms in central metropolitan areas. We therefore need to be innovative in the use of space which Audi City allows us to do. ‘And finally, people are now very familiar with digital content creation and Audi City allows people to engage and interact with the brand in a way they would expect.’ Inside, visitors can digitally select their vehicle from several hundred million possible configurations and experience it in realistic 1:1 scale on huge screens. The new showroom is also as much about giving people ‘the Audi experience’ as it is about selling cars. ‘Audi City is staffed and set up in a way that tries to give a great experience for every guest, whether they are coming to buy a car, take a photo
or simply enjoy the space,’ said the spokesperson. ‘The host team are not sales people and are there to welcome visitors and guide them in whichever way is appropriate. The host team can help a prospective customer learn more about the model or models they are interested in, and find out some more information.’ It is only then that a member of the sales team will be introduced to the guest where customer details and car configurations can be transmitted downstairs to the private rooms. It’s here where a more traditional sales process can be mixed in with the Audi City technology and dealership systems to complete an order as in any other Audi Centre. But what about test drives? Audi City has that
covered too. ‘Test drives can be offered from Audi City or from the customer’s choice of home or work, whatever is most convenient. Audi City London is a sister site of West London Audi and Victoria Audi, from which any model can be brought along for a customer to test.’ The firm is currently running research and analysis of Audi City to decide whether there is viability for other Audi Centres across the UK, but Audi City will always remain unique, explained the spokesperson. ‘London is unique within the UK context. However, as technology becomes more affordable we will look to applying this technology to our network,’ added the spokesperson. Audi aims to open more than 20 stores worldwide by 2015.
Special track event boosts retention Audi may well be carving a new path in the world of car sales, but it’s also introducing new ways for its dealers to interact with customers. The German firm has created a new interaction campaign that allows dealers to talk to their customers like never before. In June, the Audi Showcase took place at Rockingham Motor Speedway, Corby, Northants. Dealer Group Vindis welcomed around 500 customers to the venue, and it was an opportunity for the Volkswagen Group dealer to communicate with customers in ways the showroom environment does not allow, group sales manager Peter Toop told Car Dealer. ‘The event was brilliant for us as it got the Audi range into a different environment from that of the showroom,’ says Toop. ‘We had nearly
500 customers there – and they were a mixture from our prospecting database, our most loyal buyers and customers who have recently taken delivery of an Audi. It really allowed us to build and nurture relationships with customers.’ Customers were treated to a wide range of special activities. From driving demonstrators on road routes, to testing their competitiveness on Audi-provided game simulators, there were plenty of activities to keep customers interested. And while the fun took place, customers’ cars were valeted by the Rockingham team. However, of greater note was the chance to experience high-performance Audis on and off the track on Rockingham’s specially-created wet grip facility. ‘Especially with the S-line and RS models, it was a great chance for customers to
fully experience what these cars can do in a safe environment,’ added Toop. ‘We received overwhelmingly positive feedback from our customers. The point of the event was not to sell 500 cars, rather to build 500 relationships.’ The event was supported in full by Audi UK, but allowed the Vindis Group to mould the event to their requirements. ‘We hold many manufacturer events here,’ said Rockingham’s senior business development manager, Natalie Rees. ‘But few have such a high level of dealer involvement. It was really great to see dealers in a different environment – they were really energised when communicating with customers as they had been taken out of their comfort zone.’ CarDealerMag.co.uk | 19
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Bangers4BEN is out, The Big BEN Rally’s in
You asked so we’ve taken action... now it’s time to bag a place on our charity rally
w
e’ve listened and acted – now we can reveal Bangers4BEN has been given a major revamp for 2012. Although there was a huge amount of interest in this year’s event, the fact it was going to take seven days out of car dealers’ busy lives put many people off. And it’s for that reason we’ve decided to revert to the popular four-day format of previous events. And while we’re giving the event a revamp, we’ve also changed the name – Bangers4BEN will henceforth be known as The Big BEN Rally. Why the change? Simple really – car manufacturers and some dealers were put off the event because they didn’t want cars from their marque being associated with a ‘banger’ rally. A number of manufacturers we spoke to suggested a name change, so that’s exactly what we’ve done. OK, so down to the details. We start on the same date as before – Saturday, October 13 – but now we arrive back on Tuesday, October 16. Romania is out and instead we’re heading to Barcelona, Spain. However, the concept of helping two charities in the process is still very much in. We want participants to fill their cars with shoeboxes, which we’ll then deliver to a charity in Spain, which will hand out the supplies to the homeless and poorest people in the country via the Salvation Army. In previous years our rallies have been thoroughly enjoyed, but many participants suggested we make the trip for an additional reason (rather than just a jolly), hence this year’s idea of helping out another charity on the way. The panel, right, explains what sort of things the charity would like our competitors to take. On the way to Barcelona we’ll drive over the famous Millau Viaduct – the world’s tallest bridge – and then, when we get to Spain, we’ll make our aid drop. Once that’s sorted and we’ve had a celebratory beverage, we’ll head back again. Back in Blighty, the car you made the trip in will be sold in a charity auction at BCA’s Blackbushe site and all the proceeds will be handed to BEN. So not only will you get four fantastic days away, but you’ll also get that warm glow that comes from helping not one, but two charities. You have up to £500 to spend on your car, but it’s worth remembering that BEN makes its money from the sale of these cars so if you spend a bit more, it doesn’t really worry us – and it certainly won’t worry BEN!
SHOEBOXES We suggest participants hook up with their local paper or radio station to help fill their cars with goods for the charity. We’ve done exactly that and expect members of the public to help support our cause. It will be a great bit of publicity for your dealership – ask them to drop off goods at the showroom and you’re likely to get some decent footfall too! The charity we’ll be supporting in Barcelona is called the St George’s Church which will distribute the goods to two causes. Firstly, any second-hand clothing will go to needy families in Spain. And then the festive-care packages The good news is we’ve managed to get the entry fee back down to £500 for a team of two. This covers your hotels, evening meals and breakfast – plus your ferry crossings. You’ll have to pay for fuel, tolls and the terrible jambon sandwiches and pieces of dry quiche the French call service station lunch. THE PLAN Day one will see teams cover 471 miles from Dover to Limoges, France. Day two is a 446-mile schlep to Barcelona, then we do the same mileage back again on days three and four. In total that’s roughly a 1,300-mile round trip.
will be distributed to the homeless via the Salvation Army at Christmas. Here’s what they need: 1. Any second-hand clothes 2. Toothbrushes 3. Razors 4. Soap 5. Shampoo 6. Deodorant 7. Scarves, gloves and hats 8. Treats (sweets, chocolates) Place these in shoeboxes and ensure the contents are clearly marked on the outside to avoid issues at borders. Once again, the AA will be sending two patrols with us, just in case teams break down (like we did last year) and that’s bound to come in extremely useful. Now we’ve modified the event, we’re sure places will sell out as quickly as they have done in the past. Last year, we sold out the 36 places we had available in a matter of days. We already have 10 teams signed up, so if you want a place we suggest you get in touch with Kelly Neal at BEN on 01344 294720. Places are only secured upon payment of the £500 entry fee. We look forward to joining you on the start line! CarDealerMag.co.uk | 21
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That Was The Week – our roundups are posted online on Fridays CarDealerMagazine.co.uk
The month, digested We keep an eye on the motoring must-knows so you don’t have to. Here’s what’s been happening in the auto industry this month
JULY 9-13 THE BMW GROUP announced a further £250m investment in its UK manufacturing operations in Oxford, Swindon and Hams Hall by the end of 2015. Hodgson Mitsubishi has relocated to a new state-of-the-art building in Gateshead, the Japanese car firm has announced. Benfield, the north-east’s largest motor group, was chosen by Maserati to operate its first official solus dealership in the UK. Kia’s facility at Zilina, Slovakia, set a new car production record during the first six months of 2012, building 149,000 vehicles – a 10 per cent year-on-year increase. Vauxhall released its first official pictures of the Adam – the firm’s new premium three-door car. Like Citroen with its DS3, Vauxhall is keen to point out the Adam is not retro. Ford’s Dagenham factory clocked up its 40 millionth engine – enough to stretch 20,000 miles, or four fifths of the way around the globe, when placed end-to-end. Chevrolet UK revealed it’s discontinued the Cruze four-door saloon. A decline in the four-door saloon segment’s popularity with UK buyers was to blame.
JULY 16-20 SEAT released pictures of its all-new Leon. It’ll debut at the Paris Motor Show sporting five petrol options and four diesels, but prices will be announced later this year. Long-established Cheshire car dealership, Mangoletsi, teamed up with Subaru following a £1m investment to create a state-of-the-art showroom. Dealer group Inchcape raised more than £26k for BEN after completing the UK Three Peaks in 24 hours Challenge. Great Wall dealers can now take a deposit of just £1 on a brand-new Steed pick-up. The plan is available for business users only, through all 45 dealerships in the Great Wall dealer network, and continues until September 30, 2012. Nissan extended its fixed-priced servicing offer to include cut-prices on common repair items. The servicing offer is available on models which have passed their third birthday. Audi announced it managed to acquire a further 250 build slots of the RS3 Sportback. Steve Zanlunghi was appointed managing director of Fiat Group Automobiles UK.
JULY 23-27 DEMAND remains strong for upper executive, 22 | CarDealerMag.co.uk
Clockwise: Zanlunghi; new Leon; Hodgson; and Vauxhall Adam
IN ADMINISTRATION
Story of the month DEALER group Holiways – which runs Ford sites in Bishop Auckland and Newton Aycliffe – has gone into administration. The company’s website has been taken down and instead a statement from the administrators is displayed. It reads: ‘Mark Firmin and Howard Smith of KPMG LLP were appointed joint administrators of Holiways Limited on 7th August 2012. ‘The affairs, business and property of the company are being managed by the joint administrators.’ Full story p16 sports and luxury cars said BCA, as buyers continue to support the company’s programme of Top Car and Executive sales. Chevrolet announced it is to enter into a four-year agreement with Liverpool Football Club to become its official automotive partner. The partnership runs to the end of the 2015/16 Premier League and European campaigns. Volkswagen added two new engines to its new Beetle range: A 2.0-litre 137bhp TDI turbodiesel engine, and a 2.0-litre 197bhp TSI turbocharged
petrol engine. Ford dealers explored new ways to improve efficiency and customer communication through the use of cutting-edge technology, thanks to Google and GForces. Seat added a super-eco version to its Exeo range. The 117bhp Ecomotive S is now the cheapest model in the Exeo range with a starting price of £20,040.
JULY 30 – AUGUST 3 MERCEDES-BENZ upgraded the C-Class for 2013. There are three new trims: Executive SE, AMG Sport and AMG Sport Plus, and prices start at £25,915 for the saloon. Motorists will have to live with the dreaded ’13’ on their number plate if they want a new car in March 2013, said CAP. Despite reports that drivers could choose to retain the ‘62’ plate after March 1, the DVLA said this is not the case. SsangYong Motor UK wants to add at least another 15 dealers to its network by the end of the year, the firm’s CEO told Car Dealer. Lancashire-based Bowker Motor Group confirmed plans to open its first non-franchise dealership in Osbaldeston. Seat launched online service booking in an attempt to make the process as convenient as possible for customers. [CD]
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Honda celebrates 1,000th apprentice bit.ly/Hondaapprentices
Honda’s biggest dealer New showroom is the firm’s largest in Europe, reports James Batchelor
T
he opening of any new dealership is exciting, but even more so when it’s something a bit special. And Bracknell Honda certainly is out of the ordinary. Owned and operated by the Cloverleaf Group – itself part of Jardine Motor Group – the dealership has the largest selling space of any Honda dealer in Europe. The showroom is able to cater for 14 new cars – and that’s not forgetting the forecourt which has space for around 60 approved used vehicles too. There’s a seven-bay workshop that provides service and repair work too, with further dedicated bays offering MOT testing and wheel alignment. General manager Gary Peters threw open the doors in the spring, and hosted a launch weekend. ‘We tried to have as many events as possible to bring in the customers,’ Peters told Car Dealer when we visited the showroom. ‘There was Peppa Pig for children, Honda Racing bikes for the dads and a nail bar for the mums. But it was really fantastic to engage with our customers on the basis of actually having a conversation with them. Normally we talk to customers when they want to buy or when they’re having a service. We don’t often get the chance to get customers to come down and have a chat. ‘We had around 25 people in the showroom at any one point, throughout the day. One thing we offered customers was the chance to bring their car into our new workshop and let them walk around with one of our technicians to show them what we do.’ The new dealership is just three miles away from the old premises in Ascot. That showroom was a Honda dealership from 1995, and its 22 staff relocated to the new Bracknell site. In fact, the new dealership is built on the same site that used to build Honda F1 engines. And the good news is that the customer enthusiasm at the launch weekend has continued. ‘We have been really surprised with the amount of service work that has come in,’ revealed Peters. ‘When we moved from our old premises, we moved three miles closer to our Reading business, and one of the things we have been conscious of is losing customers from one site to another. We decided to monitor the migration of customers, and we’re pleased to say there has been very little. ‘What we have noticed is we have created 10 to 15 brand new customers – most of them used to use independents. If we can keep this up our absorption rates will really improve here. ‘We expected to see an almost instantaneous improvement in our used cars. We haven’t and that was probably a bit naïve. But, in contrast, the opposite has happened with new cars,
New Bracknell Honda dealer is biggest in Europe; Gary Peters is the boss
Message to dealers Nick Campolucci, Honda UK’s head of dealer development, has a simple message to Honda dealers: ‘It’s not all about having the latest product and having a big shiny facility. In the last two years, with the car parc declining, the network has done a fantastic job in countering this by all of the incentives and activity they have done to increase their part penetration on the service side ‘As we all know, keeping the absorption rate up in tough times is absolutely critical. What we now need to look at is how we work with the network in focusing on getting new product successfully launched, and get back to where we were.’ which is just brilliant.’ Peters certainly knows the importance of having such an important dealership under his command. ‘We see this as a real opportunity,’ he said. ‘We’re at a stage where the current product cycle gives us the confidence that this size of facility can
be justified. We’re on the cusp of new CR-V and the new diesel engines, and that will open us to new corporate markets which we have been closed off.’ Bracknell Honda is a good example of the firm’s future confidence, believes Nick Campolucci, Honda UK’s head of dealer development. ‘Honda as a business is very interesting,’ he says. ‘I look after the four Honda groups – cars, motorbikes, marine and power equipment. When I talk to a bike dealer, they are in completely different place to a car dealer. Their situation is great and is moving forward. ‘When I talk to a car dealer, they say where is the range? When is it coming? Let me tell you it is coming – but at the moment Honda cannot give its dealers what they want.’ But Campolucci says the future is looking good and he won’t be cutting dealers. ‘We used to sell 104,000 cars a year – now we sell half that. Our dealers are asking are we going to slash the network. The answer is no. We want to get back there. We’re in a lull at the moment – we can see the product coming and those days will be back.’ CarDealerMag.co.uk | 27
FINANCE. FIGURES
PCPs popular as finance forges ahead QUARTER two 2012 saw double-digit growth in the new car finance market, reports the Finance & Leasing Association (FLA). In Q2, the value of new car finance increased by 38 per cent and the number of cars bought on finance by 27 per cent, compared with Q2 2011. More than £2.2bn was lent to consumers to fund the purchase of more than 155,000 cars. FLA statistics show that PCPs remains the most popular product, accounting for 61 per cent of all consumer new car finance agreements. HPs accounted for 26 per cent, and leasing for eight per cent of the market. Personal loans from motor dealers accounted for the rest. Over the last 12 months, 67.9 per cent of new cars bought by consumers were purchased using finance sold in car dealerships. Paul Harrison, head of motor finance at the FLA, said: ‘2012 has been a great year so far for motor finance providers, with the total market up by 18 per cent in Q2 and the new car finance market posting doubledigit growth every month this year. ‘The used car finance market fell for the first time in 12 months in June, but was still up over the quarter and the year. The small dip can probably be explained by the range of incentives available.’
Males more likely to finance their next car Men realise that a good car is important while women still feel uncomfortable in a dealer environment
D
ealer finance is most likely to be used by males in the 35-44 age bracket, says Main DealerOffers.co.uk. New research from the firm reveals some 19 per cent of drivers in this age group said they would use dealer finance, compared to the overall average of 13 per cent, in a study which sought to discover the consumer’s most popular route to a new car. This contrasts with the older generation who are most likely to buy a car using cash, with more than half (52 per cent) of car buyers aged 65+ preferring to acquire their next car this way. Overall, 44 per cent of motorists said they would buy a car using cash, while 13 per cent said they would use some form of dealer finance. Nine per cent said they would use other forms of finance such as a bank loan, and three per cent
‘‘
said they would buy their next car with financial help from friends or family. Unfortunately for the car industry, the remaining 37 per cent said they had no plans to buy another car at the moment. Regionally, this lack of interest in a new car rises to 50 per cent of people in the congested city of London, compared to just 29 per cent in cardependent Scotland. The Scottish and the Welsh (both polling 19 per cent) are also the most
Some 19 per cent of drivers in this age group said they would use dealer finance.
likely to use car finance to get their next car compared to just eight per cent in London and nine per cent in the south-west. Women showed a greater reluctance to use dealer finance than men with 40 per cent compared to 47 per cent of men expressing an interest in using this method to get their next car – perhaps hinting that women still feel less comfortable in a dealer environment. MainDealerOffers.co.uk’s Richard Lawton said: ‘Men in their middle years appreciate that a good car can make life so much easier. Likely to be heavily dependent on their cars to get to work, they don’t want to deal with an old banger and realise that dealer finance is a great way to secure their next car.’
Tempting range of finance offers as DS3 sales success continues CITROEN is celebrating the success of its stylish DS3 model by offering a special finance offer on the car. In the first seven months of 2012, a total of 10,206 DS3s were sold taking it firmly to the top of Citroen’s sales chart. This volume means an impressive 66.8 per cent increase over the 6,118 DS3s delivered during the
same period last year. More than 27,000 DS3s have now been sold since the car’s launch two years ago. The model can be financed for £199 per month on Citroen’s Elect 4 Personal Lease plan. Up to £1,500 deposit contribution on selected models is given with Elect
3 PCP & Elect 4 finance, while three years’ free servicing and roadside assistance is also given. The French firm is also making tempting finance offers available on the Citroen C1 city car, C3 supermini, C3 Picasso, Berlingo Multispace, C4, C4 Multispace, and the stylish DS4 and DS5 models.
Valuing Service – Valuing You! First Response Finance is the first choice for the UK’s small to medium sized dealer market. 28 | CarDealerMag.co.uk
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DEAL FINDER
Latest finance deals on small hot hatches SWIFT SPORT SUZUKI has arguably defined this sector since the launch of its back-to-basics small hatch, the Swift Sport, in 2006. The new model – launched earlier this year – aims to continue this trend. Armed with a pokey 1.6-litre petrol engine that packs 133bhp, a racy bodykit, 17-inch alloy wheels and metallic paint as standard, it’s a hit with small hot-hatch fans. And Suzuki has a tempting deal on the car to tempt potential purchasers. A deposit of £1,335 is needed to start the deal, and this is followed by 43 monthly
payments of £239 at 8.7 per cent, plus a £10 purchase fee and £290 credit facility fee. A final payment of £4,698 is required to finish the deal, bringing the total amount payable to £16,071.
payable is £18,642.40. The deal includes Mini’s tlc package (five years’ or 50,000 miles servicing), and a Pepper pack which includes Bluetooth and USB audio.
RS TWINGO 133 OF all the cars listed here, this is the one that can claim to be the ‘hottest’ if not the most ‘hardcore’. The Twingo is a favourite among customers and motoring journalists alike. And to keep it ticking the right boxes, Renault has given it a makeover, just like the ‘normal’ Twingo variants. The deal is offered on the Twingo Renaultsport 133 fitted with the desirable Cup chassis, 16-inch alloys and air con. A deposit of £499 is all that’s required by the customer to begin the deal with a £99 acceptance fee, followed by 49 monthly payments of £299 at 9.1 per cent APR. A
time is money
Check out your rivals
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MINI COOPER YOU can’t talk about small hot hatches without mentioning the Mini Cooper. It holds classic status among customers who are looking for a sporty hatchback which has a bucket load of style. And customers can slip into the British icon for as little as £199 per month. A deposit of £2,699 starts the deal after a dealer contribution of £594.05. This is followed by 48 payments of £199 at 6.8 per cent APR, plus a £10 option-topurchase fee. The optional final payment comes to £5,986.35, meaning the total amount
Meldrum
credit facility fee of £139 is also required, as is a £10 option-to-purchase fee. The final amount is £4,200 bringing the total to £15,939. The Twingo 133 also comes with Renault’s 4+ package.
ast month I wrote about how important it is that your Unique Selling Points are discussed at every opportunity to ensure your business has the best possible chance of making every sale. This month I’d like you to consider how you should address your competitors’ USPs and ask yourself why customers buy from them and not from you. Finding out what benefits customers get when they buy from your competition is priceless because you can use this knowledge to offset these benefits with some competitive advantages of your own. What are your competitors offering that is truly better than you? How many sales do you lose because customers say they want to look elsewhere before buying, but then they don’t come back? How well do your salespeople describe the competitive advantage that you have over the dealership around the corner? In the current economic climate, every major sales and marketing decision needs to be made with the full knowledge of what and who you are competing against because nowadays everyone needs to get their strategy spot-on. Discussing the prime and near-prime markets with First Response’s CEO, Don Brough, recently we agreed that no matter what the future holds we’ll stay close to our core sub-prime business because we add real value that many of our competitors do not. We are very proud of the fact that at an award ceremony hosted by Car Dealer magazine in July, First Response achieved the title of ‘Best Sub-Prime Lender in the Motor Industry’. This prestigious award is a clear indication that a great many car dealers feel First Response offers a level of service that consistently outperforms the other players in the sub-prime market.
‘Why do customers buy from your rivals, not you?’
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 | 29
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Around the world Dealer news from somewhere other than here
Spanish brand Seat reveals all-new Toledo hatchback bit.ly/newToledo
MICHIGAN
Legendary American dealer group Penske saw its secondquarter net income jump by 24 per cent as it sold more new and used vehicles. The car dealer, based in Bloomfield Hills, said its net income rose to $49.1m (£31.3m) for the three months that ended June 30.
BRAZIL
A Brazilian Chevrolet dealership is helping out stranded motorists with brand new Chevrolet Cobalt cars. The retailer has teamed up with a local recovery company – and when a breakdown is reported, a new Chevy Cobalt follows the tow truck and a test drive is offered to the stranded motorist. The dealer says it is trying to turn a negative situation into a positive one.
CHINA
Dealerships in China may be involved in a price war between each other soon if the country’s automobile situation does not change. Retailers are experiencing swollen inventories as manufacturers are pushing excess stock onto them and customers are not buying cars. As a result of a slowing economy, wholesale vehicle sales in China fell short of expectations by rising only 2.93 percent year-on-year to 9.6 million units in the first half of this year, according to the China Association of Automobile Manufacturers.
INDIA GERMANY
Three in 10 new car sales in Germany are self-registered by dealers, it has been revealed. Official statistics show that nearly half a million self-registrations were made in the six months through to June 2012 – that’s more than the entire new car market in Spain.
Industry groups in India are calling for the Government to update unfair labour laws. Last month the Maruti Suzuki plant was ransacked and set on fire by workers fed up with outdated workplace legislation. One member of staff was burnt alive while vast parts of the factory were torn to the ground. Honda and Hyundai have experienced similar riots at their factories.
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warranty sales
with WMS Group’s Eric Stone
Q. Do you have any new products or services? A. Yes we have many! Since the start of the year we have launched a family of ‘Safe and Sound’ products all endorsed by Sir Stirling Moss OBE (‘SmartShine’ paint and fabric protection; car and motorhome Guaranteed Asset Protection available as pay-monthly or straight payment; and MOT cover). We also recently introduced four levels of motorcycle warranty (guarantee schemes) for dealers that are non-FSA registered, and motorhome warranty products for dealers that are FSA registered. Our portfolio is now extensive and we have products for every single FSA and non-FSA registered business, including warranties for cars, CV’s, motorhomes and motorcycles; GAP; MOT cover; paint protection; breakdown cover and wheel & tyre cover for starters. Having partnered with the Unipart repairer network at the start of the year also means that if our policy holders experience problems away from home they can book the vehicle in at their nearest Car Care Centre - Unipart are renowned for offering the highest possible service and customer care. Q. How should dealers be looking to use warranties during 2012? A. With drivers now hanging onto their vehicles for between five & seven years, and repair costs reaching an all time high over the last few years, for dealers the spotlight is now on going above and beyond the call of duty if only to protect their margins. Buyers now expect to be able to walk away with the best warranty cover that their vehicle qualifies for, but this doesn’t necessarily mean that dealers have to pay for a 12, 24 or 36 month product. In fact many of our dealers include a comprehensive three or six month plan within the sale, but then upsell to the customer with some achieving a conversion rate of around 60%. Q. Anything else you need to mention? A. Yes, for dealers it’s no longer about looking for big margin opportunities, but instead concentrating on increasing the volume of products sold (product penetration) and choosing to make a sensible margin instead, Industrywide, the focus is now on customer care and satisfaction, and if that means spending ten minutes of your time to explain a product at the point of sale, offering the very best deals/ products/services that you can, providing an exceptional sales/support service and a pleasant environment which customers will want to come back to, you are automatically going to increase your business referrals and retention levels, which will add substantially to your bottom line.
In short, it’s all about delivering a high perceived value in products that will actually protect the motorists, and this trend that the industry is embracing is certainly set to continue at least for the next handful of years. The bottom line is that if your customers leave the showroom with the best possible products available to them then you are automatically going to improve your retention levels, whilst generating countless profit opportunities such as the servicing required to keep the warranty valid, repair work carried out under the terms of the product, extension plans and renewal.
Eric’s Top Tips... Explain the product included with the vehicle without misleading them to avoid disappointment when the customer submits a claim. Explain the importance of a warranty during their ownership to avoid expensive repair bills. Outline the key benefits of the product - in our case, no excess to pay; no restriction to the number of claims allowed; care hire, tow-in expenses, hotel accommodation and EU cover are all included; claim limits which include the costs of parts and labour; and no incremental reductions in the amount we pay out regardless of the age and mileage that the car reaches during the term of the policy. Draw the customer’s attention to the special offers you have available when they extend their cover. To help dealers maximise the chance of making the sale, we have a fantastic range of incentives such as receiving up to 50% extra warranty or recovery free of charge which represent fantastic value for money for buyers, and a great profit making tool for you.
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Eric Stone - 07789 682502 Sales@WMSGroupUK.com www.WMSGroupUK.com
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big mike.
All Big Mike’s columns are on our website. Enjoy here bit.ly/bigmike
Contraflow cretins and a confession I shouldn’t have made
W
ell, I guess it had to happen at some point. After 12 years of squeaky cleanliness, at least as far as my driving record is concerned, I have finally been zapped by a man in a van, my crime being a heady 56mph in a 50mph zone, at the wheel of a highly exotic Skoda Fabia 1.2. Now, I’m not going to turn into one of these people who suggests the police go out and catch some real criminals, or who jumps up and down and shakes it all around just because I was absent-minded enough to drift over the speed limit – I’m guilty, simple as that, and I’m not going to spend the next three months whingeing about it to anyone who’ll pretend to listen. Indeed, I was one of the lucky ones. Rather than cop three points and a fine, I was given the option of attending a speed awareness course, albeit closer to the scene of my crime in Bedfordshire, 100 miles away from my lot. And so it was that, one damp and rainy morning (it was summer, after all), I pointed my trusty Toyota Camry towards the A45 and headed off to serve my time, leaving to cheery jibes of ‘don’t rush back’ and ‘slow and steady wins the race’ from my car cleaning boys, with whom I’d foolishly entrusted my business for a day. As per the advice that was doled out to me later that day, I’d left plenty of time to cover the journey, thus reducing the pressure on me to put the pedal to the metal and instead enjoy a relaxed, comforting drive down the M1. To be fair, given the V6 Camry’s prodigious thirst and my parsimonious approach to emptying my wallet, I need very little encouragement to rein it in. What I hadn’t accounted for, though, was the imbecilic behaviour of some other motorists. Those who use the central Bedfordshire stretch of the M1 regularly will no doubt be rolling their eyes at me at this point as they, clearly, know better – but thanks to the most ridiculous set of roadworks I’ve ever seen, the whole thing grinds to a halt at junction 13, at which point you may as well apply the handbrake, get out of the car and take your dog for a walk, while the blithering idiots around you try to work out how to negotiate a contraflow. Admittedly, it looks like a lorry has tipped over on its way from the cone factory (where are they made, as a matter of interest?) and scattered its contents liberally across what has become
Big
mike Our man on the inside spills the beans on the car business...
the spine of Britain’s road network. However, the clumsy automotive chiropractors are less to blame than the drivers who, happily bombing along at 80+ mph, suddenly see a roadworks sign, a dreaded average speed camera, and decide that rather than slow down and calmly negotiate the immediate hazard they should instead slam on the anchors not quite hard enough to avoid ploughing into the inexplicably stationary car in front of them, leading the nanny-state authorities to close the motorway for three hours while they sweep up bits of broken headlight lens. But I digress. Having finally crawled off the motorway three junctions before the one I needed, I found myself running a bit late. And despite their first and foremost commitment to ‘road safety’, the speed awareness people had made it quite clear that if you did arrive late, you’d be going home with a big
‘I’m not going to spend the next three months whingeing about it...’ black mark on their register and three more points on your licence for not turning up. So I did the only thing I could in the circumstances, and mash the accelerator pedal into the threadbare Japanese carpet and admire the way the Camry sagged down onto its haunches and launched itself down some country lanes that were narrow enough for the foliage to clean its door mirrors. It may be 17 years old, but it still gets a pedal on when it needs to. I arrived with minutes to spare. Enough minutes, in fact, to pop out for a fag before the course (four hours of intense, disconcerting propaganda seeing as you ask) was to begin. Suitably haggard from my manic dash for the finish line, I was pleased to see a similarly ragged-looking bloke standing beside me in the smoking shelter. ‘I hope there were no speed cameras between here and Bedford,’ I said to him. ‘I had to drive like a bat out of hell to get here in time. I even saw three figures on the clock at one point.’ ‘Really,’ he said. ‘My name’s Steve. I’m the bloke who’s running today’s course...’ Oops.
Who is Big Mike?
Well, that would be telling. What we do know is he’s had 30 years in the car trade and picked up some seriously funny tales along the way. CarDealerMag.co.uk | 33
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Q
A customer has contacted me saying the police have been round and seized the car he bought from me because it was stolen. They returned the car to the person who reported it stolen. Needless to say the customer is irate and wants his money back. When I bought it, I checked its HPI and it was clear. What should I do? DA, Oxfordshire Cases like this are very rarely straightforward for a number of reasons. Firstly the criminal law regarding theft and fraud means that there may be a guilty criminal in the picture who has used either deception or in a more simple way actually stolen the vehicle by physically taking it from the owner. Confusion then arises. The police’s role is to apprehend the criminal. Their role is not primarily to deal with the issue of who is the rightful owner. Secondly, civil law relies very much on case law to establish whether good title has or has not passed. If a car is stolen by physically being taken without authorisation, the title will not pass. In legal terms we say the contract is void. However, there are many situations where a rogue can fraudulently get a vehicle, sell it on, and the original owner cannot get title to the vehicle back. In these circumstances the contracts of sale are called voidable. That means that, when the person believes they have been duped, they can declare to the world that the contract has been
A
ADVICE
What are the odds of getting into trouble? Q. We had a few sweepstakes for our staff during the Olympics and for other sporting occasions this year. Could these have caused us any problems? TT, Lincolnshire A. While sweepstakes are commonplace in most working environments, employers must be careful that they are not in breach of the Gambling Act 2005. There is an exemption within the act for ‘workers’ betting’, whereby people at the same workplace (this differs to being in the same company, ie, all work at the same site) may hold a sweepstake. avoided, and anyone who is a buyer after that point in time won’t get title. Such a declaration would generally involve reporting it to the police, DVLA and HPI/ Experian registers. In reality of course, though, by that time the rogue has sold the car, pocketed the money and someone has in fact got good title. Once that good title is there then the vehicle can be legitimately sold on. If faced with the customer seeking money back, don’t agree to that straightaway. They may have had the car removed unlawfully
This must be done as an internal matter and should not be advertised at any time within or outside of the premises. Furthermore, there must be at least one prize given, and the employer must in no way profit from such an event. As long as these rules are met, you should not fall foul of the Act.
by the police, and if you give the money back you may only be transferring the loss to yourself. If a car is genuinely stolen and you are obliged to refund the price then, of course, you may be able to sue the person who sold it to you. From experience though there is a benefit of requiring the customer to sue you in the first place. They are forced to get all the evidence to prove the case, only if they have enough evidence will they win their case but if they do then you have a valid claim to pass on to the person that sold the car to you.
Wet weather has led to complaints Q. As you might expect with the wet weather, I am getting a few complaints about water ingress. A particularly troublesome one is about water seeping onto an ECU, which is going to cost an arm and a leg to repair. Other problems are coming in from soft-top owners. What’s the best way to deal with them? CV, West Yorkshire A. Cars, these days, are a lot better at keeping out the rain. But the things that seem to give most problems are wear and tear on the various seals on soft tops, allied with build-up of leaves and other debris in drainage holes. Then there is the general problem of driving
too fast in deep water leading to excess water driven up into the engine and the exhaust. The problem you have as a dealer is getting an answer to the problem that you can rely on. With the ECU problem, you need a motor engineering consultant to take a view on whether the water has arisen from driving in deep water, whether someone has been over-hosing the bodywork/engine or whether there has been a problem in dispersing rain water off the car through bunged-up drain holes. Regarding the deterioration of seals then you might like to remember that a customer cannot complain of a defect they have accepted when
agreeing to buy the car. So, if you are selling a soft top/cabriolet, BEFORE you put it up for sale make sure it gets a good soaking and see if there are any leaks. If there are, then get the customer to sign as accepting it has leaks before buying the car. In my experience, people that like to drive around in soft top cars are generally happy to accept some water ingress so it would be unlikely it would put them off the purchase. If you don’t get an agreement to a water leak and it happens relatively soon after you sell the car then you stand having a claim for lack of satisfactory quality/not fit for purpose.
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 £39.99 per year. Sign up at CarDealerClub.com 34 | CarDealerMag.co.uk
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forecourt.
Vicky Magill
Skoda’s product manager for Rapid and Octavia explains the thinking behind the firm’s new family hatchback – and says the company has ‘fans,’ not customers Putting the Rapid to one side for a moment, how are things going for Skoda? Well, we’re a growth brand and we’re actually very successful. We’ve had a record-breaking first half of the year and have filled a lot of open points with new dealers recently, so we’re clearly an attractive proposition. Anecdotally, and talking to the dealers I come into contact with, they all seem quite happy and content with the fact that they are Skoda dealers. Yeti’s doing well, and Citigo was Auto Express’s car of the year. Superb has won its share of awards too. All our cars are being really well-received at the moment. Onto the Rapid then, and Skoda obviously have high hopes for it. The Rapid is amazing and something for dealers to get excited about. Last year we launched our new corporate identity so dealers got a hint as to what their showrooms of the future would look like and we started using the new logo, which is clean and modern. The Rapid is the first car that embodies that look from a product point of view – it’s modern, fresh and dynamic. The car has strong shoulder lines and this new design is something we’ll be seeing again and again. And the price list will be revealed a bit later on… We’re looking at a sub-£13k starting point and the idea with Rapid is that it is going to create a ripple effect within the model line-up. It’s going to be like throwing a little pebble into a pond and watching everything move around it. It’s possible there may be some initial confusion about where it sits in relation to Octavia, but when we get the new Octavia, which will be slightly higher-priced and much higher-specced, people will be able to see how Rapid will plug that gap. I think it will make a lot of sense. The amount of space in the Rapid, particularly the rear legroom and the boot, is bound to appeal, isn’t it? When we talk about Rapid it is about having lots of space without having to pay the earth for it. It will appeal to families who only want to run one car. Maybe they are very practical thinkers who just want the largest amount of space at the best price. That’s what Rapid is. It’s very cleverly done. All the solutions are very clever to maximise the space available. The Skoda jokes are just a distant memory now. You only have to look at the awards we’ve won. 36 | CarDealerMag.co.uk
‘‘
So with your cars repositioned in the range, you’re obviously hoping Skoda can go from strength to strength in the UK. Yes – not only will this car itself be important, but the impact it will have on the whole range is really key. When Octavia comes in that will be a really big seller. In the A segment, we will have Rapid, Octavia and Yeti. In 2010, we did something like 21,000 vehicles in that segment. By 2015 we will be doubling that to 42,000. That all has to come from somewhere. It will come from Rapid but it will also come from the repositioned range so we’ll be putting more people into our other cars too. We’ve got to hit those figures so everyone needs to be on board.
When we talk about Rapid, it is about having lots of space without having to pay the earth for it.
How many Rapids will you be looking to sell? The figure we’ve set ourselves is 6,000 a year. The SE trim will be the most popular. We’ve got really great equipment on that car and we think it’s where the price and equipment come together to create a really fantastic proposition that will appeal to retail and fleet customers. We anticipate getting quite a lot of volume there. Can you say precisely when the UK launch date will be?
We know it’s ‘later this year...’ In the UK we will be looking at launching around November time. Skoda’s always been a very rational, logical choice. We offer fantastic value. You do not have to pay the earth to get it and now with the new design language, we’ve not only stuck to those core values but we’ve also introduced more desirability. There’s more heart attached to it. It’s more emotional and not just about a very practical decision. And of course the car is true to Skoda’s ‘Simply Clever’ philosophy... The Simply Clever approach is brilliant – and one of our core brand values is roominess. That’s true of all our cars – we have class-leading levels of space. It is so nice to see the Simply Clever brand value embodied in the Rapid and the car has 19 ‘simply clever’ features – a couple of which are the ice scraper in the fuel filler cap and the nets on the sides of the front seats. ...perhaps explaining why you say you have ‘fans’ rather than customers. When Skoda designers design a car, they design it to match what people will want to use that car for. All our cars are famous for that. Buyers can instantly see how they will be able to live with our cars and that’s why we have so many fans amongst our customers. We don’t just have customers, we have fans because they can see how much effort we have put into our cars.
in association with INTERIOR
The car boasts 19 ‘simply clever’ features – including an ice scraper handily stored next to the fuel filler cap and a double-sided covering for the boot floor – one upholstery, the other wipe-clean rubber.
STORAGE
As well as the cavernous boot, there are many storage solutions inside the car for items such as multi-media players and parking tickets.
DESIGN
Skoda Rapid Skoda have high hopes for their all-new family car, the seventh member of their award-winning range. Dave Brown drove one What is it? It’s an all-new family car that sits between the Fabia and Octavia. With a hatchback body style, it has a huge amount of interior space (the boot capacity is particularly impressive) and features Skoda’s new design language. It’s equipped with a range of efficient petrol and diesel engines, has no shortage of clever safety features and will be on sale here later this year.
What’s under the bonnet? Four petrol and two diesel engines are available, mated to five- and six-speed manual transmissions and seven-speed DSG. Selected versions of the Rapid will be available with Skoda’s pioneering GreenTech suite of environmental technologies from early 2013. Greentech models will benefit from engine stop/start, kinetic energy recuperation and tyres optimised for low rolling resistance.
What’s the spec like?
What do the press think of it?
Considering the price (buyers will be able to get behind the wheel for less than £13,000), we think it’s a very good package. Skoda’s three familiar trim levels will be available: S, SE and Elegance. Depending on which is chosen, standard features will include a new multi-function steering wheel with soft-touch keys, cruise control, Bluetooth, MDI (multi-device interface), air con, trip computer and central locking. There will be other extras too.
Concentrating on the inside of the car, What Car? said: ‘There’s certainly no faulting the layout of the controls, the amount of stowage up front or the fine driving position.’ Auto Express said: ‘It all feels very durable – and what the car lacks in styling flair it makes up for with clever ideas.’ They added the Rapid offers ‘class-leading space and great value’.
What’s it like to drive? Again, we were impressed. The cabin is spacious, airy and unfussy and the dash is well laid out. Skoda say the Rapid’s chassis has been engineered to tackle the UK’s demanding roads and it certainly provided us with a comfortable, stable ride.
What do we think of it? This car will do well for Skoda. It’s very much of its time in that it’s a very decent family car at a price that will appeal to many in these recessionary times. There’s so much space inside, it’s almost Tardis-like – and of course being part of the Volkswagen family won’t harm its chances of reaching the 6,000 UK sales a year that Skoda are after.
We would agree that the car looks good, if a little on the conservative side. It’s wellproportioned with clean lines.
the knowledge Model: Skoda Rapid S Price: TBA but from less than £13,000 Engine: 1.2-litre, petrol (tested). Power: 73bhp Max speed: 109mph 0-60mph: 13.9s MPG (comb’d): 46.3 Emissions: 137g/km Residual values (three years): tbc
target buyers: In a word – families.
the rivals: Ford Focus, Vauxhall Astra, MG6 GT.
Key Selling Points: 1. Lots of space for a reasonable price. 2. Stable handling thanks to its long wheelbase. 3. Safety features galore.
Deal Clincher: At the risk of repetition, it’s VERY roomy. Monthly AutoTrader.co.uk searches: n/a CarDealerMag.co.uk | 37
forecourt.
Mark Terry
The managing director of Chevrolet UK and Ireland talks about his dealer network and the American brand’s partnership with Manchester United Tell me about the dealer changes occurring at the moment. We are appointing enthusiastic dealers. I’d rather appoint a dealer who’s enthusiastic about customers and Chevrolet as a brand, than one that is a gin palace and is not interested in what they sell. We’ve had some dealers who look great on paper, but when that is teamed with motivated staff, their performance accelerates massively. I think that’s where the real future of business lies. How’s the network? We’re at just over 90 dealers, but within that there are four segments – those who meet our future size requirements and have the right attitude; there’s a group who have got the attitude but may have some space constraints and we are talking to these in terms of investment plans in finding new premises or building more space. We’ve also got a set of dealers who, honestly, haven’t got the space or the attitude so we are saying let’s end it now. There’s also a whole new group who really want the franchise and who have approached us. Some of them will be new open points. Did the dealers you lost earlier this year not have the right attitude? It was a blend. There were some dealers who we would have chosen not to have walked away and who we would have preferred to stay. But given the previous strategy where it was very much about dualling with a Vauxhall operator and whereby the Vauxhall operation would be 90 per cent of their business, when the new block exemption rules came into play, clearly an operator had to make a decision on where they were going to stake their future. So some larger operators said ‘we’ve got to get out – not because we want to, but we cannot make the choice to stay with you and keep our other large partner happy’. In other cases it was us that said it just isn’t working, let’s part amicably.
‘‘
Tell me about the Manchester United partnership. What were the reasons behind this? Chevrolet is a global brand and partnerships with Manchester United really give us the sense that we are very serious about global partnerships with global brands. Chevrolet and Manchester United is one of those significant steps to show people how serious we are in 38 | CarDealerMag.co.uk
being global. Dealers who are into football or not, and dealers who watched us winning the World Touring Car Championship (WTCC) or not – all of these things build up a jigsaw that begins to fall into place to create something that’s special. Our partnership with Manchester United is the next step in our brand’s direction. First it was product, then it’s sponsorship, then the dealer network, and then media and advertising. Taking the recent announcement that Chevy are quitting WTCC, do you think car makers are having to move away from motorsport to different arenas to market themselves? Very much so. It’s a bit like the staff we employ. There was a day when you would put your best technician on service reception, because customers wanted to talk technically. The service receptionist now needs to be like a hotel receptionist in facilitating the ease of the customer. Similarly with sponsorship terms – because we’re into engineering, it’s very easy for us to get into motor racing. But now we can see that for a brand to appeal to a much
For a brand to appeal to customers, you have to reach them not through cars, but through what they’re interested in.
wider level and audience, you have to reach them not through cars but through what they’re interested in. You told us earlier this year that you couldn’t get enough Volts into the UK. Is that still the case? It is, yes, but the dealers are not fully up and running. Cambridge Chevrolet has sold 30 Volts, for instance, and Phoenix are doing very well too. They are both on track to meet our forecasts. We are still looking to the factory for more allocation. Certainly, we would like more – it has really captured the public’s imagination, and the kind of customers we are dealing with really understand the technology and have been waiting for this type of car. But restrictions are still in place, and we still have to buy for every month. Are you frustrated at the Cruze SW coming later than other Cruzes? I’m never frustrated with new products. Any new product is good for us, and it’s great to be a part of a brand that is continually bringing new vehicles to market. How can I complain on the back of 10 new car launches? Is the SW important for dealers? Absolutely, as it’s a new segment for them. It’s going to suit motability, private and fleet buyers. For us it is a vehicle which will suit a number of channels in the market.
in association with CABIN
Up front it’s typical Cruze with its distinctive fabric on the dash and durable plastics. But, in the rear, there’s 1,478 litres of boot space with the seats down – 500 litres with seats up – and an array of clever storage solutions.
OUTSIDE
The SW variant is the most handsome of the Cruze range. SW also brings in a slightly tweaked nose with a new grille and fog lamp surrounds.
ON THE ROAD
Chevy Cruze SW Chevy has sold more than 1.3m Cruzes worldwide. Now they’ve added an estate model to the range. James Batchelor reports What is it? This is the Cruze that dealers have been waiting for. Last year Chevy dealers received the much-needed five-door hatch, but they have been unable to provide a competitive offering in the popular C-segment estate sector until now. It’s practical, with 1,478 litres of boot space with the seats down, and it also brings in a facelift for the Cruze range, new technology and the death knell for the Cruze four-door saloon.
WHAT’s under the bonnet? Quite simply, the choice is limited to two petrols and a diesel. The petrols come in the flavour of a 128bhp 1.6 and a 139bhp 1.8. The majority of buyers will opt for the 128bhp 1.7-litre diesel as it’s the best all-rounder. We also tried a 1.4-litre petrol and 2.0-litre diesel at launch, but there’s no current plans to introduce these to the UK yet.
What’s the spec like?
What do the press think of it?
Just like the five-door hatchback, Chevrolet is generous with the list of standard equipment. The range kicks off at £15,375 for the 1.6-litre LS which comes with air con, MP3 connectivity and electric mirrors. Prices top out at £19,785 for the 1.7-litre LTZ Nav model. This is very reasonably priced and boasts alloy wheels, climate control, sat nav, cruise control and rear parking sensors.
The Independent said: ‘Most parts of the world like it and buy it in big numbers. Now that the Station Wagon has arrived, more UK buyers can be expected to join in.’ Auto Express, however, concluded: ‘The Cruze SW makes plenty of sense as a family choice, thanks to its spacious, clever boot and refined, comfortable drive. But the Ford Focus estate is sharper and much more fun to drive.’
What’s it like to drive?
What do we think of it?
When it comes to the test drive, customers would be advised to try different versions. Why? Petrol versions are soft, wallowy and aren’t involving to drive. However, the 1.7litre diesel version – thanks to more weight over the front wheels – is far more pleasurable to drive. The sixspeed auto (1.8-litre LT) is not the best.
We’ve never been huge fans of the Cruze range, deeming it to be the Astra’s poorer cousin and not that attractive. But the SW changes that – yes, a Focus may be more fun to drive, but few rivals match the SW’s package of attractive styling and great value for money. The Cruze is no longer a left-field choice.
Feels like an estate should – comfortable. That said, heavier diesel versions handle far better.
the knowledge Model: Chevy Cruze SW LTZ Price: £19,785 (as tested) Engine: 1.7-litre, diesel Power: 128bhp Max speed: 124mph 0-60mph: 10.4s MPG (comb’d): 62.8 Emissions: 119g/km Residual values (three years): tbc
target buyers: Mostly fleet buyers but also private family buyers.
the rivals: Ford Focus Estate, Kia Cee’d SW, Hyundai i30 SW
Key Selling Points: 1. Decent storage space with the rear seats down. 2. Impressive range of standard equipment. 3. Well-designed interior.
Deal Clincher: Clever and thoughtful storage features. Monthly AutoTrader.co.uk searches: 25,843 CarDealerMag.co.uk | 39
forecourt. the knowledge Model: Volvo V40 D2 SE Price: £21,345 (tested), range from £18,495 Engine: 1.6-litre, diesel Power: 115bhp, 270Nm Max speed: 118mph 0-60mph: 11.7s MPG (comb’d): 78.5 Emissions: 94g/km Residual values (three years): tbc
target buyers: Mostly fleets for D2 model, petrol versions aimed more at retail buyers.
the rivals:
No Volvo for the last two decades has been as important as this V40, but does it impress? James Batchelor has driven it What is it? This is the most important new Volvo launch for the past 20 years. Despite its V40 badge – last seen on the estate version of the S40 – this is the first five-door hatchback Volvo to compete in the C-segment since the days of the 400 in the 1990s. The Swedish firm is pitching the V40 against the brand new Mercedes-Benz A-Class, BMW 1 Series and the big daddy – the Audi A3. It replaces both the S40 and V50 and around 2,500 will be sold in 2012.
Audi A1, BMW 1 Series, Mercedes-Benz A-Class
What’s under the bonnet?
Key Selling Points:
A Quality Street-like assortment. Diesels come in the flavour of a 1.6litre four-cylinder with 115bhp badged D2, and two 2.0-litre five-cylinder diesels with 150 and 177bhp both badged D3 and D4. Petrols consist of a 150bhp or a 180bhp 1.6-litre fourcylinder, and a 2.5-litre five-cylinder coming later this year. The D2 will take 70 per cent of UK sales.
1. Continues Volvo’s trend of excellent build quality. 2. Low BIK tax for company car drivers. 3. Class-leading safety.
Deal Clincher: Entry level model is 7-12 per cent cheaper than rivals. Monthly AutoTrader.co.uk searches: 66,165
in association with
What’s the spec like?
What do the press think of it?
It’s simple and all versions are wellequipped. The range kicks off with the D2 ES for £19,745 which comes with 16-inch alloys, leather steering wheel and gearknob, electronic climate control and Bluetooth. SE versions add keyless start and cruise control and kick in at £21,345, while the range tops out with the T4 SE Lux at £26,680, which offers leather upholstery and 17-inch alloys. All come with City Safety and a pedestrian airbag as standard.
Auto Express was very complimentary, saying: ‘The V40 deserves to be a huge hit. Stunning looks and decent performance combined with safety innovations and low CO2 emissions make it a talented all-rounder. However, Autocar felt: ‘Unfortunately, the Volvo V40 remains a car that you will buy because you want to be different rather than because it is the best of its kind.’
What’s it like to drive?
We are very impressed by the V40. For years Volvo has stated it’s an alternative to premium German products, but that has never really rung true. The V40, however, is a car that really takes the fight to the Germans and is a serious alternative. Whether the buying public will be as enthusiastic as us has yet to be established of course.
This is a very competent car. It must be remembered that the V40 is based on the Ford Focus platform – it’s also the last Volvo to use Blue Oval underpinnings – so you can imagine how well it handles. But Volvo has added some of its own style to the way the V40 drives.
What do we think of it?
Volvo V40 STYLING
The V40 is a looker and features a smooth shape and subtle creases.
EQUIPMENT
V40 features the world’s first pedestrian airbag. There’s also City Safety and park assist. 40 | CarDealerMag.co.uk
HANDLING
This car has Ford Focus underpinnings – so it’s not bad on twisty country roads.
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forecourt. the knowledge Model: Alfa MiTo Twinair Price: £14,150 or £15,350. Engine: 875cc twin-cylinder turbo-engine. Power: 85bhp, 145Nm Max speed: 108mph 0-60mph: 12.3s MPG (comb’d): 67.3 Emissions: 98g/km Residual values (three years): TBA
target buyers: Drivers who find the Fiat 500 TwinAir too small.
the rivals:
Chrysler Ypsilon TwinAir, Fiat 500 TwinAir, Audi A1.
Key Selling Points:
1. Five-year warranty for retail buyers until September 30. 2. That clever TwinAir engine. 3. No London congestion charge or road tax.
Deal Clincher: Green credentials mean lots of financial benefits. Monthly AutoTrader.co.uk searches: 82,783
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Alfa MiTo TwinAir
Will more drivers be tempted now MiTo has been given Fiat’s award-winning TwinAir engine? Dave Brown reports What is it?
full of fizz, the MiTo is a real handful. We tried it out on the go-karting circuit at Thruxton, Hampshire (as well as on local roads) and although we didn’t set any records on the track, we had great fun behind the wheel. Hard to believe we were driving a car powered by an 875cc engine.
It’s Alfa Romeo’s sporty supermini equipped with Fiat’s multi award-winning 85bhp TwinAir engine. Alfa says the introduction of the two-cylinder engine into the range reinforces the MiTo’s image as a hi-tech, sporty, compact car.
What’s under the bonnet?
£14,150 and £15,350 respectively. A generous standard specification on That acclaimed 875cc twin-cylinder the Sprint trim level includes 16-inch turbo powerplant with electrosports alloy wheels, cruise control, hydraulic valve control technology. It manual climate control and Alfa’s delivers impressive fuel economy – although Alfa’s figures might be a tad Blue&Me hands-free connectivity on the optimistic side – and sub-100g/ system. The Distinctive trim level km CO2 emissions. Alfa’s DNA system also benefits from standard premium features including 17-inch sports alloy means drivers can select Dynamic, wheels and red Brembo brake calipers. Normal or All-weather mode.
What’s the spec like? It’s available in two trim levels – Sprint and Distinctive – priced at
What’s it like to drive? Great fun. Sporty, sprightly, agile and
Toyota Prius Plug-in Toyota has slipped some lithium-ion battery technology into its Prius. Does it make sense? James Batchelor finds out What is it?
What do the press think?
Following the launch of the seven-seat Prius+ MPV, this is the second model which enlarges the Prius family. This is Toyota’s first rechargable full hybrid, and becomes the flasghip of the Prius family. It’s on sale now.
What’s under the bonnet? The Plug-in features the same 1.8-litre petrol engine as found in the ‘normal’ Prius, but a lithium-ion battery offers 15.5 miles of pure electric power. The car can operate in petrol, electric modes alone or both. Total power is 134bhp, with emissions of 49g/km of CO2 and combined MPG is 134.5.
What’s the spec like? There’s just one spec customers can choose. Standard equipment includes Toyota Touch & Go Plus system with sat nav, rear-view camera, Bluetooth, 42 | CarDealerMag.co.uk
eight-speaker JBL sound-system, rainsensing wipers and cruise control. It’s priced at £27,895 after the £5k government grant.
Autocar said: ‘As a future mode of transport that allows for zeroemission town driving yet still with the ability to drive hundreds of miles on a tank of fuel, it’s perhaps the most viable solution yet.’ If customers ‘mainly do short trips and also value the option of tackling occasional longer journeys... the likable plug-in Prius could be an attractive option,’ concluded The Independent.
What’s it like to drive?
What do we think of it?
Don’t think of this car as a gimmick. Our test route allowed us to experience electric power (we still had nine miles left), and the switch from electric to petrol is smooth. Around town, the Prius Plug-in is zippy and agile, on the motorway it was only a tad noisy.
With other manufacturers joining the green party, it was obvious Toyota needed to improve its, let’s be honest, lacklustre Prius. While that car is still on sale, the Plug-in makes far more sense. It’s pricey compared to some eco diesels, but if customers want a Prius, it’s the best one on offer.
What do the press think of it? Autocar said: ‘The car now sounds brilliant under heavy throttle loads and accelerates particularly smoothly all the way to its 108mph top speed. Inside the TwinAir’s cabin, the seating position is good thanks to plenty of adjustment to the seats and the steering wheel.’
What do we think? Different and distinctive, MiTo ticks a lot of boxes, but we’ll take Alfa’s fuel economy figures with a pinch of salt.
the knowledge Model: Toyota Prius Plug-In Price: £27,895 (after £5k government grant) Engine: 1.8-litre, petrol and 60kW electric motor Power: 134bhp, 349Nm (engine and electric motor comb’d) Max speed: 112mph 0-60mph: 11.4s MPG (comb’d): 134.5 Emissions: 49g/km Residual values (three years): tbc
target buyers:
Fleets, conquest buyers and existing Prius owners.
the rivals: Chevrolet Volt, Vauxhall Ampera.
Key Selling Points:
1. 15.5 mile EV range is enough for most commutes. 2. Well equipped. 3. Boot is just 31 litres smaller than ‘normal’ Prius.
Deal Clincher: Very low CO2 emissions of just 49g/km. Monthly AutoTrader.co.uk searches: 150,989
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Feature.
Game se Hot hatches
Picking a winner out of this lot wasn’t easy – so we have no idea how buyers will decide between the latest hot hatches. James Baggott, James Batchelor and Duncan Chappell row about which will be the showroom star Bag: Hot hatches. Brits love them and so do dealers. There’s nothing quite like a few extra horses up front, some modified suspension and a body kit to get buyers flocking to showrooms. So the arrival of two steroidinjected hatchbacks from the two biggest-selling manufacturers in the UK – Ford and Vauxhall – was a great excuse to get together the very best on sale today for some Hampshire road terrorising. Ford has ruled out an RS version of the Focus (for now), so the ST is the hottest we can expect, but is it enough to take on its bitter rival, the Astra VXR? Let’s see. Batch: It’s not all about the boys from Dagenham and Luton, though. Like owls, there are many species of hot hatches to spot and we’ve got together the very best currently on the market. There’s the Renaultsport Megane 265 Cup, for instance. When confronted with the Focus’ mad looks or the huge power of the Astra, the Megane gives a Gallic shrug. And to show the Spanish can do hot hatches and not just paella, we’ve brought the Seat Ibiza Cupra R along, too. A hot hatch shoot-out wouldn’t be complete without the godfather – the perennial Golf GTI. And to champion fun on a shoestring we’ve got Toyota’s new GT86 sports car. Dunc: Hot hatches have always had a simple philosophy: Go fast, look good and have enough room for two kids and a flatpack from Ikea. Easy, eh? These days, there is a long and mouth-watering list of these welterweights to choose from. Hot hatches provide a cheap(er), real-world alternative to expensive sports cars, and, in some cases, just as much performance. A hot hatch is a loyal companion for the road, it doesn’t demand oil every week, nor high servicing costs and only 44 | CarDealerMag.co.uk
Pictures: matt richardson
t HATCH
The alternative
CarDealerMag.co.uk | 45
Feature. the knowledge Model: Astra VXR Price: £26,995 Engine: 2.0-litre, four-cyl turbo Power: 276bhp, 400Nm Max speed: 155mph 0-60mph: 5.9s MPG (comb’d): 34.9
very rarely will it attract abuse from onlookers. Don’t get me wrong though, there are a lot of homemade ‘hot hatches’ out there with massive wings, big wheels, silly stereos and farty exhausts – usually found in McDonald’s car parks. These are not what I am talking about. I’m talking about well-sorted, focused drivers’ cars for the real world – usually found at Ikea. Bag: And the well sorted models are exactly what we’ve got here. For this test we’ve decided to stay local and tackle the cracking A272 which bisects Hampshire, flowing from Winchester to Midhurst. The roads are a mix of fast sweepers, tight twisties and full-throttle straights – it’s a corker and right on our doorstep. What makes this test even more interesting is Dunc actually owns a previous-generation VXR and I used to have a previous-gen Focus ST. Batch had some French thing that was brown and bits of the door fell off, but we’ll ignore that. But why the GT86 too? Well, it’s £25k (about the same as the hot hatches here) but offers rear-wheel drive and sports car looks on a budget – and many hot hatch buyers will be considering one alongside the assembled fun machines we have here. But more on that later – for now, let’s start with the VXR. Batch, your thoughts? Batch: I’m going to rise above that slightly slanderous comment and start taking this seriously. The VXR is one of the cars I’m not allowed to drive as my youthful years worry Vauxhall’s insurance company. So my opinion is based purely on looks and how it feels from the passenger seat. The VXR gets a very high score 46 | CarDealerMag.co.uk
The business case VAUXHALL ASTRA VXR Unlike some of its rivals, the VXR badge does not have a long and glorious heritage. However, GTE, GSI and SRI badges have led the way before it. Vauxhall describes the VXR as a car that ‘shortens straights, straightens corners’ and thinks the typical buyer will be aged between 24-50, and have a penchant for B-roads. Around 900 units of the previous VXR were sold by dealers last year (7,000 since it was introduced in 2005) and it hopes to smash its 1,200-a-year target with the new model. Most cars will be specced with the Aero Pack (like ours) at £995 and the £790 Premium Forward Lighting Pack.
in the looks category. As opposed to Dunc’s old VXR, this new one is a more successful hot hatch interpretation of the standard car. Whereas the old car was a spiced-up version of an already smart looking machine, the new VXR throws away all traces of the current dreary Astra and is pleasingly muscular and outrageous. With its 20-inch wheels (part of the optional styling pack), the VXR is in proportion, while every crease and bulge looks natural. The same cannot be said for the interior. I’m sorry Vauxhall but a bit of fake carbonfibre here and some VXR badges there does little to lift the Hyundai-esque style dash. The seats are fab, but that’s about it. And a square gearknob? That’s just wrong. DUNC: Batch, don’t be upset by that vicious remark about your old car, it’s not your fault it was made of Dairylea! And James, when you say ‘I used to have the previous gen Focus ST?’ you can’t count driving your wife’s car (twice) as ‘owning’. It is true, I do have a MK1 VXR, and I love it, or at least I thought I did. The new one is such a huge step forward that it leaves me thinking just how unruly mine is. There’s not much difference in the power (although mine has been tuned to about the same as the new one) but it is the way it handles that I find amazing. You have to drive it like a four-wheel drive car to extract the true performance. The LSD allows you to plant your foot in any part of a corner and it will just grip and pull you through. Speaking of LSD, what were Vauxhall’s design team on when they came up with that extra rear spoiler? Overall I think the VXR has taken the hot hatch game to another level. It is, in short, brilliant.
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Feature. Bag: You would say that Chappell. Before I start moaning (I know, not unusual), I’m going to state I like the VXR, which for a Ford owner (Fiesta XR2), takes some saying. It’s blisteringly fast, comfortable and grips like a four-wheel-drive rally replica. But, I can’t get on with the looks. It’s like a cartoon character of an Astra, all chunky cheeks and stupid I-can’t-believe-I-paid-for-this-portrait grin. I prefer the interior of the VXR over its Blue Oval rival. The buttons are bigger and easier to use, and it feels far more spacious. However, why has it got a Sport button AND a VXR button? One is bad enough. If I’m buying a hot hatch it should be sporty all the time. End of. Otherwise I’d buy a diesel or something equally boring. From what I could tell, all the VXR button did was make the clocks a bit road-ragey red. Pointless. Anyway, let’s move on to the Tangerine Scream (really?) Focus ST. Yet another car you couldn’t drive Baby Batchy... Batch: I know, it’s depressing being 23, isn’t it? Surely you remember that far back Baggott? Sorry I forgot, that’s a whole two decades ago. Anyway, I have to say I am a trifle upset at not being able to drive the ST – again for insurance reasons – so take the following opinion as you will. You couldn’t call me a typical Fast Ford fan but I do have a rather large soft and squidgy spot for them. Why? Well, we all like a working-class hero don’t we? But that is my problem with the ST. For me it doesn’t give off that balls-out sports special feeling like the old one. The lack of Volvo’s five-cylinder warble aside, I just get the sense that Ford have stuck as much plastic and honeycomb on what is, essentially, an already fine-handling hatchback in Edge trim. There’s none of the technical precision of the VXR or the classic styling of the GTI. It doesn’t fit as neatly in the hot hatch sector as the others here. The only thing that’s really getting my eyebrows raised are the looks we receive from the people in my village as we pass through. An orange Ford on GERMAN plates? Shocking. I probably sound a bit harsh, but I haven’t had the luxury of driving it. Dunc, what’s it like old chap? Dunc: Bag, you’re wrong, the VXR’s looks are the best here. Anyway, the ST, Batch, is very good. If you have to drive the VXR like a four-wheel drive car, there is a certain way to driving the ST too – blindfolded until you’re in the driver’s seat! In fact, it’s so ugly that when driving slowly in traffic with the window down, I actually heard a few ‘errrs’ and ‘yucks’. And no, they weren’t talking about me. It feels a bit more fun than the VXR on the road. It’s looser, more playful and feels every bit as fast. I just don’t like the simulated feel of the thing. A manufactured noise pumped into the cabin to make you think it sounds better than it does. Not right. And I find it too busy inside. If it takes a lot of concentration to drive, don’t fill it with gadgets. When having a blast on some A-roads, I don’t want to be shouted at by the dash with speed limit signs, wing mirrors lighting up when you pass a tree too close, full beam coming on so you get flashed by other drivers (happened 48 | CarDealerMag.co.uk
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the knowledge Model: Ford Focus ST Price: £21,995 Engine: 2.0-litre, four-cyl turbo Power: 247bhp, 359Nm Max speed: 154mph 0-60mph: 6.5s MPG (comb’d): 39.2
THE BUSINESS CASE FORD FOCUS ST Fast Fords are a hit with customers, and the ST is no exception. Dealers have been selling Focus STs since 2002 when the name first appeared on the ST170 hatchback and estate. The previous gen arrived in 2006 and was fitted with the Volvo 2.5-litre five-cylinder engine. Last year dealers shifted 4,000 of them and that’s the figure Ford wants to match with the new model. The Blue Oval believes the share of the new car’s sales will be 80 per cent hatch and 20 per cent estate, and the target buyer will be a hot hatch enthusiast ‘with hobbies’. Whatever that means. Anyway, around 60 per cent of STs will be the ST-2 model and that adds equipment such as partial leather, dual electric air con and a nine-speaker Sony audio system.
a lot) and the wheel vibrating when you drift over a line or two. This is supposed to be a driver’s car. Not the other way around. I felt like the ST was telling me how to drive! But, it doesn’t detract from what is a very good hot hatch with plenty of fun to be had. Bag: Dunc, Dunc, Dunc... those driver aids you’re referring to are called ‘progress’. What do you want? Drum brakes and four on the floor? I agree some of the ‘extras’ on the Ford are a bit too helpful, but I love the fact it has the sound from one bank of cylinders piped in through the dash. It sounds great and means you don’t have to be driving like a loon to feel like you’re enjoying yourself. The ST is brilliant to drive and I love the way it involves you. Yes, there’s some torque steer but that makes it feel alive. It’s not as planted as the VXR either, but again I like that because it feels more involving. And the fact of the matter is, it’s just as quick as the VXR – and, importantly, it’s £5k cheaper. That’s a hell of a big price difference for not a lot of extra bang. Orange and a bit tacky it might be, but bleeding good fun to drive and entertaining it is too. Anyway, let’s move on to another car that insurers won’t touch the quiffed one on... the Megane. Over to you tweed boy. Batch: My wide assortment of tweed jackets would clash horribly with the Megane’s yellow
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Feature.
‘‘
The Megane is an absolute cracker to drive. It sounds great, has monumental levels of grip and even lifts a wheel in tight corners. My only concern is it looks a bit boring.
‘‘
seat belts. In fact, it’s really only the aforemetioned safety belts and a pair of super – no, scrub that: totally wonderful – sports seats which mark out the interior of the Megane 265 Cup over lesser, conservative models. And that’s a feature I adore. It’s a bit of a stripped-out special in that respect. Again, as Baggott so gleefully mentioned, the Megane was another car the insurance companies prevented my tweed from gracing the driver’s seat of, and this upset me. Before buying my new car a few months ago, I dangerously flirted with the idea of buying a Clio RS 197 – but the tweed thing came up once again, and I ran to the nearest Mini dealer. I understand the whole cult, owner club and enthusiast thing with Renaultsport models. It’s a feature that only the GTI can rival. At just under £25k the 265 Cup is reasonably priced and it misses out on being the fastest to 60mph by a meagre 0.1 seconds. One thing I don’t like about Megane RSs these days, though, are the vast number of models. Perhaps it’s just me, but there seems to be so many Cups and Trophies that the Megane 265’s integrity has been lost a little. Dunc: Bag, I just think that when you pass your driving test, that gives you the right to drive a car. All this so-called progress is in danger of making drivers lazy and forget how to drive. Anyway... the Megane packs a mighty punch, but I think it could do with more time in the gym, at least another 20bhp, please, Renault, it can handle it! The grip is close to the level of the VXR and is just as much fun as the ST, but it just feels a little too basic. Remember, the hot hatch theory is an everyday car that goes fast. My missus moaned like hell about the seats after a two-hour motorway journey! But get it on the A272 and you can see why you need them. It dares you to go faster and faster, like being dragged by a bulldog on a lead. It’s great fun. Bag: For once we agree. The Megane is an absolute corker to drive. It sounds great, has monumental levels of grip and even lifts a wheel in tight corners. My only concern is it looks a bit boring. It’s all a bit mono – grey here, black wheels there. Only the yellow seat belts bring life to the inside. And while I’m on the subject of the interior, where has everything gone? I’m all for simplicity, but this thing is entry-level-spec basic. And why is the stereo hidden away under the dash? It’s a pain to use. But, to be honest, I didn’t really care about that when the engine is such a corker. It sounds brilliant with a rat-a-tat-tat as it hits the limiter and there’s loads of feedback from the steering. The brakes, unlike some here, do a decent job of shedding all that speed. If it didn’t look so much like a hunchback from the rear it would very nearly take my top spot. So let’s move on to a car Batch can actually drive (or attempt to when not leaving his notebook on the roof), the Golf GTI. Surely that’s a bit of you twiglet boy? Batch: Ah, yes, the GTI. I won’t dwell on its importance: Unveiled in 1976; only available in Germany; lashings of tartan, created a revolution; had its fair share of iconic adverts; got fatter; became obese and slow; and then went on a 50 | CarDealerMag.co.uk
THE BUSINESS CASE Renaultsport Megane 265 Cup WhereAS Volkswagen call their GTI ‘The Original’, Renault call the Megane 265 Cup ‘The Benchmark’. Last year the French firm shifted around 500 of the hardcore Meganes through its dealer network but, despite us asking, giving out sales estimates for 2012 ‘is against company policy’. Which is both weird and annoying. Anyway, like all the hot hatches here, the Renaultsport Megane 265 Cup appeals to a very select customer. That punter is normally male and in his mid- to late 30s, but it does appeal to cash-rich buyers in their 40s too. The most popular model selected is the ‘normal’ 265 with the Cup chassis fitted, with the Renaultsport monitor (a realtime data tool), 19-inch alloys and Recaro seats being the most common options selected.
the knowledge Model: Megane 265 Cup Price: £24,840 Engine: 2.0-litre, four-cyl turbo Power: 261bhp, 360Nm Max speed: 158mph 0-60mph: 6.0s MPG (comb’d): 34.4
CarDealerMag.co.uk | 51
Feature. Davina McCall fitness programme in 2004. I love this car. It epitomises everything that’s good about hot hatches. Of all the sporty five-doors here, it’s the slowest to 60mph, has the least amount of power, and ‘only’ does 149mph – but it’s more charming for it. This is a car customers can live with – it’s a little bit softer and more comfortable, but can set fire to their trousers once in a while and still looks classless in every situation. Dunc: What are you on about? The Golf isn’t important any more, maybe in a ‘this is where it all started blah, blah, blah’ Antiques Roadshow kind of way. I do agree on one point though, it fits into every situation. As long as that situation is the car park of a knitting club, middle-aged badminton on a Wednesday evening, or the local village amateur dramatics rendition of ‘Allo ‘Allo. The only people I see driving Golf GTIs are ladies-what-lunch and old businessmen whose company car allowance doesn’t stretch to a 3 Series or a C-Class. I’m not going to talk about how it drives, because it’s so dull. Need I remind you that this is £29,600? I’m sorry, but it doesn’t belong in this category any more, it’s been knocked out by far better contenders. No wonder all the ladies driving them look so miserable. And it’s not a five-door by the way. Bag: Now, now ladies... I see, we’re back to disagreeing again then Chappell. I know it hasn’t got eight million bhp, but I like that. Firstly,
THE BUSINESS CASE VOLKSWAGEN GOLF GTI GTI – three letters that have been uttered by customers in Volkswagen showrooms for more than 35 years. In fact, since its introduction, the German firm has sold more than 231,000 GTIs in the UK, and it was the MKII version that wooed buyers the most, shifting 80,307 units between 1984 and 1992. It’s for this reason Volkswagen use the tagline ‘The Original’ for selling the car, and it’s this tradition that appeals to so many buyers. 80 per cent of customers are male, and six out of 10 of them are married. 70 per cent have more than one car, have no children and are under 50 years old. The typical GTI sold in the UK is a five-door manual, and the most popular optional extras are 18-inch ‘Monza Shadow’ alloys, parking sensors, sat-nav, cruise control and the luxury pack.
I think it looks superb still. Those wheels – although reminiscent of our Kia Rio long termer – look classy, the new driving lights are striking and in this red with the tartan interior, it’s iconic. I know it’s down on power (210bhp) on the rest of them here, but I didn’t really notice. It still sounds good, the steering is sharp and the gear changes spot-on. Inside it’s a little clumsy and the seats are dreadfully uncomfortable, but it’s good fun to drive on the twisty roads. VW dealers love them because they sell – and if that’s to those middleaged ladies and company car drivers, who cares? They’re the ones with the disposable income after
all. Yes, the image may have changed, but possibly to the benefit of dealers pockets. Let’s move on to one of my favourites: The Leon Cupra R. Batch, shock horror, they let you drive this one too? Batch:: I know, how lovely of Seat. This is the type of car that I could not ride up to my twee village hall and be expected to play the part of the policeman in ‘Allo ‘Allo. I shall say this only once: This is the hatch here that has motor racing running through its brake hoses, and is loud and lairy in suitably equal measures. Whether it’s the World Touring Car-like brakes, Tarmac munching straight-line speed or the noise from the exhausts, you’d need a heart of steel not to be affected by this car in some way. This is an enthusiast’s car – but, I’m sorry, I can’t get enthused by the limp steering or the dated dashboard layout. It’s an excellent car, yes, but I fear it lacks finesse. Dunc: I completely agree with you on every point Batch. The Leon is an excellent car, but I feel a little underwhelmed by it. It looks so dated in this company, too. It almost looks like a crossover, sitting high on those Nike-Air-Max-white wheels. On the twisty stuff it takes a bit more planning when entering a corner than the others. It will understeer, then give you a handful of liftoff oversteer, but that is what makes it fun. The power comes in lardy cake lumps, akin to the old Renault 5 GT Turbos. And it’s huge fun. The Leon has loyal, Cupra-enthusiast buyers. This, plus the
the knowledge Model: Golf GTI Price: £25,650 Engine: 2.0-litre, four-cylinder turbo Power: 210bhp, 279Nm Max speed: 149mph 0-60mph: 6.9s MPG (comb’d): 38.2
CarDealerMag.co.uk | 53
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Feature.
‘‘
‘‘
We brought the GT86 along to see if it could take the fight to the hatches but sadly I don’t think it did. Yes it was good fun, but even the GTI wiped the floor with it
the knowledge Model: Toyota GT86 Price: £24,995 Engine: 2.0-litre, four-cyl Power: 197bhp, 204Nm Max speed: 140mph 0-60mph: 7.6s MPG (comb’d): 36.2
racing success, must be the reason that dealers are still selling this somewhat dated car, albeit in small numbers. All in all, it is a hoot! Bag: I love the Leon. It reminded my of an R5 GTT too. The noise it makes when you stick your foot down is like someone’s popped a hot air balloon. All gushing and sucking air. It’s rapid too. Bleeding rapid. The power delivery is savage – and it feels so linear, with punch all the way through the rev range. It handles superbly, the brakes are brilliant – easily the best here, although a little sharp at first – but the steering is over-assisted. If I were buying, it would certainly be on my shopping list, despite the dated interior. However I’d go for a DSG box. And £450 road tax? Ouchy. Anyway, how about the odd-one-out then Batch – what do you think of the GT86? Batch: The GT86 is exactly my sort of performance car. I’m not interested in this RevoHiPerDSG nonsense, I just want an engine with character, precise handling and a modest price tag. That’s all. Apart from the MX-5, customers have been deprived of a traditional sports car for decades. In fact, the Golf GTI (here I don my history teacher’s tweed jacket again) killed off such sports cars, that the GT86 is replicating, 35 years ago. The GT86 is proper, old-school motoring in the best British sports car tradition. Heavy steering, suitable power for the chassis, a rear end prone to waggling, and the odd bout of transmission shunt. It’s totally glorious. Having said that, the ‘86 is slightly over-styled in places and there’s some frankly horrid 1990s switchgear in the cabin. Whether customers will opt for this or the Subaru BRZ is down to brand loyalty. But I’m a total fan. Dunc: I have listened to your history lesson,
THE BUSINESS CASE TOYOTA GT86 Toyota’s ‘real deal’ sports car has only been on sale for a few months, but already the firm has sold 180 of them. Next year the Japanese giant expects to shift around 2,000, and then 5,000 more in 2013. For customers, there’s only one spec on offer and all they have to choose is whether to have their GT86 as a manual or auto. Around 80 per cent of customers will choose the former, and the majority of buyers will opt for Toyota Touch and Go sat-nav system for £750. Those buyers are likely to be male, but unlike the hot hatches here, the GT86 will appeal to a wide range of ages. Toyota says the GT86 will appeal to customers in their early 20s who are new to the brand, through to men in their 50s who may have owned an MR2 or Celica previously. Batch, taken onboard what you say, and I agree. Just not quite as enthusiastically. This is where the GT86 will find its hardest fight – getting a breed of driver out of the turbo-charged frontwheel-drive hooligan machine into something that is altogether much more of a purist driver’s car. It takes a lot of guts for a manufacturer to say ‘that’s enough power’ when putting together a sports car, but Toyota did and got it spot-on here. They could chuck another 50 or 60bhp at it, but then it would be a real handful and lose its character. Keeping up with the hatches on the twisty stuff took a lot of input and skill. You don’t need to think too much when you have a big turbo and fancy LSD to help you out, but to jump in a pure sports car after these hatches makes your senses come alive and you feel a real hero. It is a breath of fresh (unforced) air and for the money, an absolute bargain. Get prepared for the rush, lucky Toyota dealers. CarDealerMag.co.uk | 55
Feature.
THE BUSINESS CASE SEAT LEON CUPRA R YOU couldn’t call the Cupra R short of spec. It’s loaded with it and for that reason there are few options for customers to choose from. Seat tells us the only real option customers choose is more lairy paint. However, even with its successes in the British Touring Cars and the World Touring Car Championship, the Cupra R does not fly out of dealers’ showrooms. Seat sold just 119 Cupra Rs last year, and 330 since this MKII version was launched in January 2010. When the Cupra R name was first used on the sportiest Leon available back in 2002, Seat dealers have shifted 4,000 units. The typical buyer is one who’s an enthusiast and who wants ‘outstanding performance at an affordable level’.
the knowledge Model: Cupra R £26,010 Price: Engine: 2.0-litre, four-cylinder turbo Power: 261bhp, 350Nm Max speed: 155mph 0-60mph: 6.2s MPG (comb’d): 34.9
Bag:: I’m not so sure. In isolation I loved the GT86. It was the first car of the bunch I drove and I agree it is great fun. The driving position is great, the steering sublime, and the handling entertaining. Oh, and I love the gear change. But I think it lacks power and in this company it’s not really a rival. I appreciate many potential GT86 buyers will also be looking at hot hatches, but they’re very different breeds. We brought it along to see if it could take the fight to the hatches and sadly I don’t think it did. Yes it was good fun, but even the GTI wiped the floor with it – and I actually think those front wheel drive cars were more fun. I think dealers who pitch the GT86 as a hot hatch rival will be making a mistake. As a replacement for the traditional British sports car it makes sense, just like the Mazda MX5 did, but as a hot hatch alternative, it’s a no from me. I don’t know about you chaps, but even after trying them all I’m struggling to work out my top six. 56 | CarDealerMag.co.uk
But I think I’ve got a final order. Batch, I’ll let you go first... Batch:: Thank you so much. Now, if some of the manufacturers’ insurance companies had let me drive their cars, perhaps I might have been able to come to a more reasoned conclusion. As it is, I probably have the hardest task of all: Choosing between an icon, a racing car, and an old school sports car. Let me start with the bottom three. I hate to have to do this but in last place it’s the VXR. While it is a cracking looking car and showcases how capable hot hatches can be these days, that’s about it. One car that does little to move the game onwards is the Focus ST. In some ways it is lacking the excitement of the old car, but in other areas it’s a typical Fast Ford. While it’s clear why the Focus is £5k cheaper than the VXR – it has no fancy suspension, for instance – it just feels more of a likeable hot hatchback.
Fourth goes to the Megane – simply for the reason little can match its terrific cornering abilities. Third is the Seat for me. The Leon is a truly mad car. But, even when I was de-tweeded, I just didn’t have the confidence to drive it quickly. It’s a little old too, and, in this company, looks just a little like last week’s lettuce. Regrettably second goes to GT86. To me this is a five-star motor and is the best car the Japanese firm has made for decades – it is that good. It’s also a car that will provide much-needed sparkle to Toyota showrooms. And the winner is the GTI. Yes, it’s the softest hot hatch on the market; yes Duncan it’s not exactly the most technically accomplished; and yes there are elements of sincere dreariness, but nothing, nothing offers such a complete package – and it’s still a class act nearly four decades on. Over to you sir... Dunc:: This is like trying to decide who is my
favourite member of The Saturdays... Anyway, for me, last place, purely because it is not the cool performance car it should be, is the Golf GTI. Fifth goes to the GT86. I do like it, however, I am of the front wheel drive, big power, in-yourface breed. Fourth, and just out of the medals, is the Focus ST. Shock horror I know, but it is just too ugly. Taking bronze is the Leon. This is what I would have wanted when I was 17. Loads of power, white wheels, lairy paint and a big exhaust. It’s great fun to drive, but a little dated. Silver goes to France: The Megane RS265 Cup is brilliant. So much so that I want one. And this hot hatch actually warrants a yellow paint scheme. It is a racing car for A-roads with bucket seats, crackling exhaust and tramline-like handling. And the winner is – yes, obvious for me – the Astra VXR. I’m sorry, but it is time to stop putting the VXR down purely because everyone else does. This second-generation VXR is a corker
and not only hits the mark, but has created a whole new target. It goes like a rocket, handles like a four-wheel-drive car, it’s got the gadgets and looks like a drawing you would do when you were 10. THAT is what a hot hatch should be. Bag: Sorry, you’re both wrong. And as I’m the editor I get the final say. Which would be handy if I could decide a winner too. My top six has changed three times – and that’s just in the few minutes I’ve been thinking about what to
AND THE WINNER IS...
BAG
BATCH DUNC
Total
1. Megane 265 CUP
8
4
8
20
2. Leon Cupra R
6
6
6
18
3. Focus ST
10
2
4
16
4. Astra VXR
4
0
10
14
5. GOLF GTI
2
10
0
12
6. TOYOTA GT86
0
8
2
10
write here. But here goes, and I’ll start with my winner. The Ford Focus ST gets number one spot in my book. It’s blisteringly quick, entertaining to drive and although it’s cramped inside and I’m not 100 per cent convinced on the looks, I enjoyed driving it hugely. Second place goes to the Megane. Its grip levels astounded me, I loved the noise it made and the smile it put on my face behind the wheel made up for the frown it gave me when looking at it. Third place goes to the Leon. Another great car to drive with awesome pace and brilliant brakes. Fourth is the Astra VXR. I can’t get past those comic book looks and ridiculous go-faster buttons. Fifth is the Golf GTI – don’t get me wrong, I like it a lot, it’s just I like the others more. Which leaves the GT86 in last place for me. Shame, as I liked driving it, and it’s exactly what Toyota dealers need in their showrooms, but it’s just, in this company, it was way out of its depth. [CD] CarDealerMag.co.uk | 57
Feature.
Parked up
In Issue 50, we began the story of a brand new Kia dealership. Humming Bird Kia’s Colindale site has come to life from the ashes of a concrete car park. Now work is almost complete and an opening date is scheduled for September. Car Dealer caught up with the group’s customer service and marketing director, Lucie Herman, who talked us through the £1m transformation.
Putting the signage up can disrupt the traffic. The dealership is on the edge of a major retail park so we’re grateful our neighbours are putting up with the work going on.
At more than 60ft high the dealership takes up five levels of the old multi-storey car park. Several of the levels have a dedicated use, such as customer parking and service areas.
Work continues on the exterior of the dealership – once home to a multi-storey car park. The site will give us more than 20,000 square feet of space - quite a jump from our previous showroom that was only 5,000.
A vision in red! The frontage extends to over 215ft in length, longer than an Olympic sized swimming pool! With such frontage we can display more than 50 new and used cars, showcasing all that Kia have to offer. With each letter over 3ft tall, you can see why it takes at least two men to put them up – once finished and in place the letters will be illuminated – you definitely won’t miss us!
58 | CarDealerMag.co.uk
This is the real centre point of the showroom – once it’s finished we will be able to showcase 12 cars in here with space to spare!
First fix of the electrics goes in… because the roof of a multi-storey car park isn’t high, making sure all of the ducting and electrics are neatly tucked away is vital at an early stage.
The service and parts area has six service bays and holds stock for all Kia models. We will be able to look after, on average, 20 cars a day in our state-of-the-art department.
It’s definitely been a challenge to turn a dark and dingy car park into a light, bright showroom but the team have managed to do it.
Big and beautiful! The Kia logos on the front of the dealership are more than 6ft tall making sure that everyone can see that Humming Bird Kia has arrived!
Our presence continues round the back – but it’s not a tradesman’s entrance! This is the way all new cars will come in and out of the building. We are fitting out the showroom to Kia’s latest standards which will give a clean and dynamic feel to the building.
From the centre of the showroom you get a panoramic view out to Edgware Road. It will look really slick when all the work is finished and our new stock arrives.
In this picture you can see the showroom before we laid the floor. By the time it’s complete there will be 15 cars in this space allowing customers to see our entire range. We can’t wait! CarDealerMag.co.uk | 59
G-3 IS DELIGHTED TO HAVE WON THE CAR DEALER POWER AWARD FOR THE UK’S BEST PAINT PROTECTION PRODUCT 2012
OVER 1000 CAR DEALERSHIPS SUBMITTED THEIR VOTES IN THE CAR DEALER POWER AWARDS 2012 AND WE WOULD LIKE TO SAY THANK YOU TO ALL OF THEM If you would like to join the network of UK Dealerships who are already on board with the award winning G-3 Paint Protection Programme please contact the Paintseal Europe Team on 01753 2153111.
www.g-3glasscoat.com
SURVEY.
in association with G-3 GLasscoat
E
very year our Car Dealer Power survey gives those people that matter the most – you, the dealers – the chance to tell those firms you do business with what you really think. Our survey is 100 per cent confidential and allows respondents to tell it like it really is. As usual, we asked our readers to rate the manufacturers they represent on a huge variety of topics. From the support they get from head office to the marketing their manufacturer produces, we quizzed you on every aspect of this vital dealer-manufacturer relationship. And you didn’t hold back. As usual, the comments from some of the 1,000 dealers that responded to our survey were very interesting indeed. In fact some of the remarks about the car makers languishing at the bottom of our survey could never be repeated. But what’s encouraging is the steps many makers have taken to improve relationships with their networks. There were some clear winners in these stakes, not to mention the survey’s overall pole sitter which hauled themselves up 11 places in this year’s survey to take the top spot. But our survey isn’t just about the car manufacturers – in fact, probably more important to most of you, are the suppliers results. Car dealers do business with a number of different companies every day who help them with everything from websites to finance. But finding a good company can be tough. A Car Dealer Power Award win is a hallmark of quality. Voted for by you, the gongs are handed to those companies that truly excel in their area of our industry. To show the importance of these suppliers we included more awards this year and split many categories up to give more firms a chance of glory. Voting in many categories was fierce. In fact, in some, only a few points separated the top three firms. We’ve highlighted the winners and two Highly Commended places in each category. The winners were invited to a special awards night in mid-July at the top of the Spinnaker Tower in Portsmouth. Car Dealer Power Awards are the ONLY industry gongs voted for purely by the dealers, so a win in these gongs is something to be truly proud of. Read on to find out who has made our hall of fame this year.
Coming up . . . Part One
The best and worst car manufacturers to represent
P62
Third place
P68 Find out which car maker made it on to the podium this year
Second place
P69
Which maker was pipped to the post in 2012? Find out here
The Winner
P70 Which manufacturer have you voted the best to represent?
A top trio
P74
Revealed: the car of the year; best manufacturer initiative; and best manufacturer marketing scheme
Part Two
P75 Find out which motor trade suppliers you should be doing business with
James Baggott, Editor CarDealerMag.co.uk | 61
SURVEY.
27 Chrysler
Faultless
Excellent
Finance offers Warranty Aftersales support OVERALL SCORE Marketing Brand awareness NON MOVER Accessibility A dreadful result for the American brand. Its Internet position is the same as in 2011. Despite new New car supply products such as the svelte Ypsilon and curvy Used cars Delta, dealers aren’t happy. Comments include Forward planning ‘Chrysler’s planning is OK but implementation is Requirements made on you questionable at best,’ and the firm sets ‘unrealistic Bonus structure targets’ for its dealer network. Return on investment
Good
OVERALL SCORE NEW ENTRY
49%
This is the first time the Korean car maker has appeared in our survey – but it’s not particularly good news. Even though dealers gave ‘good’ scores for new car supply, used cars and the bonus structure, it seems Proton is failing miserably at brand awareness and return on investment – things that really matter to dealers.
25 Kia OVERALL SCORE tDOWN 22
✔ ✔ ✔ ✔ ✔
Kia has plummeted from third place in 2011 to 25th – a shocking result. Kia is doing an excellent job with warranties, accessibility and used cars but underperforming in new car supply, bonuses and return on investment. Comments included: ‘There’s little support for dealer advertising’ and ‘availability and lead time could be better’.
24 Volvo OVERALL SCORE tDOWN 9
52%
Volvo bosses won’t be pleased to hear they’ve dropped nine places this year. Dealers gave the Swedish marque a verdict of ‘excellent’ in accessibility and a rating of ‘good’ in seven areas. But the overall result was marred by four ‘average’ scores and dealers said the firm’s brand awareness and used car strategy is ‘poor’. 62 | CarDealerMag.co.uk
✔ ✔ ✔ ✔ ✔ ✔ ✔
Faultless
Excellent
Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment
Average
Poor
✔
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment
Excellent
Good
Average
Poor
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
Faultless Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment
Good ✔ ✔
Faultless
51%
Poor
✔
38%
26 Proton
Average
Excellent
Good
Average
Poor
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
in association with G-3 GLasscoat
23 Fiat
Faultless
Excellent
Finance offers Warranty Aftersales support OVERALL SCORE Marketing Brand awareness tDOWN 12 Accessibility Fiat narrowly missed out on a top-10 finish in last Internet year’s survey – what a contrast 12 months on. In New car supply 2011, Fiat rose 16 places and scored ‘excellent’ Used cars in four categories but it seems the hard work Forward planning has been undone. Dealers gave Fiat a fairly Requirements made on you uninspiring mixture of ‘good’ and ‘average’ Bonus structure scores this year. Return on investment
✔
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
Faultless
58%
Citroen won’t be too happy that they have dropped a few places this year. The French firm recorded two ‘excellent’, eight ‘good’ ratings and three ‘average’ scores. Dealers told us they think finance deals ‘are too weak’ and find displaying both C range and DS line is ‘confusing’, but they like the maker’s fixed price marketing.
20 Mitsubishi
60%
Good
Average
Poor
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
Faultless Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment
Finance offers Warranty Aftersales support Marketing OVERALL SCORE Brand awareness sUP 5 Accessibility This is a company who can feel satisfied that they Internet are heading in the right direction. Mitsubishi has New car supply climbed five places over last year’s position. The Used cars majority of respondents were ‘very’ happy, but Forward planning some comments included gripes about brand Requirements made on you awareness that’s ‘almost non-existent’ and a Bonus structure bonus structure that’s ‘too complicated’. Return on investment
Excellent
✔ ✔ ✔
57%
OVERALL SCORE tDOWN 4
Poor
✔ ✔
Finance offers Warranty Aftersales support OVERALL SCORE Marketing Brand awareness sUP 1 Accessibility Despite slashing the network by a third last Internet December, it seems Renault dealers are generally New car supply happy. Up one place from last year’s survey, Used cars the French firm received a mix of comments Forward planning including: ‘The 4+ message is strong’, ‘we get an Requirements made on you awful lot of warranty work’ and ‘there’s no supply Bonus structure of the new Twingo’. Return on investment
21 Citroen
Average
✔ ✔
54%
22 Renault
Good
Excellent
Good
Average
Poor
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
Faultless
Excellent
Good
Average
Poor
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ CarDealerMag.co.uk | 63
SURVEY.
19 Peugeot
Faultless
Finance offers Warranty Aftersales support OVERALL SCORE Marketing Brand awareness tDOWN 1 Accessibility Peugeot has dropped slightly in Car Dealer Power. Internet Despite important new products like the 508 New car supply and HYbrid4 models, dealers aren’t happy and Used cars gave requirements made on them, the bonus Forward planning structure and return on investment all ‘average’ Requirements made on you scores. But the continuation of the ‘Just Add Fuel’ Bonus structure programme and used cars were rated ‘excellent’. Return on investment
OVERALL SCORE tDOWN 1
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
16 Seat OVERALL SCORE tDOWN 15
64 | CarDealerMag.co.uk
Poor
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
Excellent
Good
Average
Poor
Average
Poor
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
Faultless
Last year’s winner has dropped 15 places which will be extremely disappointing. The Spanish maker notched up three excellent and one faultless scores with dealers highlighting the PCP offers as ‘great’. But they were unimpressed with ‘decision making from Spain,’ and a new website which ‘doesn’t generate leads’.
Average
✔ ✔
Faultless
68%
Good
✔
Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment
Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment
Excellent
✔ ✔
63%
The Blue Oval might be a little disappointed – it has dropped a place over 2011’s survey. Except for ‘excellent’ ratings in three categories, including brand awareness, they were ‘good’ across the board. However, not all dealers are happy. Comments included: ‘They’re a dictatorship’, and the bonus structure is ‘far too complicated’.
Poor
✔
Faultless
65%
Average
✔ ✔
Finance offers Warranty Aftersales support Marketing OVERALL SCORE Brand awareness tDOWN 5 Accessibility Alfa Romeo was one of the success stories of Car Internet Dealer Power 2011. But it seems the brand has New car supply neither improved or got worse in its dealers’ eyes Used cars – its results are almost the same as 2011, but the Forward planning price of standing still is a drop of five places. The Requirements made on you Italian firm is still rated ‘excellent’ in a number of Bonus structure areas but falling short in return on investment. Return on investment
17 Ford
Good
✔
62%
18 Alfa
Excellent
Excellent
Good
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
in association with G-3 GLasscoat
15 Toyota OVERALL SCORE sUP 4
69%
Some pleasing progress this year from the Japanese company. And although roughly halfway up our table, Toyota dealers seem reasonably satisfied. The firm has improved in many areas, earning itself an ‘excellent’ score in six categories. Good scores were netted in seven categories including accessibility and internet.
14 Honda OVERALL SCORE tDOWN 4
71%
Down four places on 2011, Honda, it seems, is taking on board dealers’ concerns. An encouraging range of ‘excellent’ and ‘good’ scores were given. Comments were generally good but one of our survey respondents said: ‘Adverts are the biggest clanger. Customers still think Honda is new to hybrids’.
13 Land Rover OVERALL SCORE tDOWN 9
72%
The British marque was a new entrant last year but 12 months on, Land Rover’s performance has dropped off somewhat. Dealers are still generally happy, feeling Land Rover is providing excellent service in a number of areas. But strong demand for the Range Rover Evoque has meant that new car supply is suffering a bit.
12 Vauxhall
Faultless Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment
74%
Good
Average
Poor
Average
Poor
Average
Poor
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
Faultless Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment
Excellent
Good
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ Faultless
Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment
Finance offers Warranty Aftersales support Marketing OVERALL SCORE Brand awareness tDOWN 3 Accessibility Despite slipping back three places compared Internet with 2011, Vauxhall dealers are happy and rated New car supply the company ‘excellent’ in six categories, ‘good’ Used cars in a further four areas, and ‘faultless’ in brand Forward planning awareness and forward planning. One dealer Requirements made on you said: ‘There’s good support to generate showroom Bonus structure traffic.’ It would seem Vauxhall dealers are happy. Return on investment
Excellent
Excellent
Good ✔
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
Faultless
Excellent
Good
Average
Poor
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ CarDealerMag.co.uk | 65
SURVEY.
11 Isuzu OVERALL SCORE NEW ENTRY
Faultless
75%
It’s the first time the Japanese maker has appeared in the Car Dealer Power awards, and the maker is doing a better job than some of the big boys. Dealers voted Isuzu as ‘excellent’ in 10 categories – no small achievement – and ‘good’ in three important areas. Isuzu should be happy with these results.
10 Mercedes OVERALL SCORE sUP 16
77%
We’re into the top 10 – and Mercedes-Benz can feel very satisfied at their ranking. The high-end German marque went up a staggering 16 places. New cars such as the C-Class coupe and the important B-Class were very welcomed by dealers, and the network gave the firm 11 ‘excellent’ scores, and two ‘good’ ratings.
9 Nissan OVERALL SCORE tDOWN 7
78%
Nissan’s bosses won’t be too happy about this result – the Japanese brand has dropped from second to ninth this year. Dealers applauded excellent marketing schemes for the British-built Qashqai and Juke, and good dealer training, but said accessibility, new car supply and the company’s bonus structure could all be better.
8 BMW OVERALL SCORE sUP 16
80%
Like Mercedes, BMW has risen from the lower reaches of last year’s table. The German giant grabbed a spot in the top 10 with a range of ‘faultless’ and ‘excellent’ scores. But it was in marketing, new car supply and the company’s bonus structure which let BMW’s overall score down. This is still a very commendable result. 66 | CarDealerMag.co.uk
Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment
Average
Poor
Average
Poor
Average
Poor
Average
Poor
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment
Excellent
Good
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
Faultless
Excellent
Good
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
Faultless Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment
Good
✔ ✔ ✔ ✔
Faultless
Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment
Excellent
Excellent
Good
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
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7 Audi OVERALL SCORE tDOWN 1
Faultless
82%
Only a slip of one place here for the German marque. It seems Audi is providing excellent support and services in a large number of crucial areas, and its dealers believe Audi is ‘faultless’ in accessibility and new car supply. However, Audi dealers believe the firm is only ‘good’ in requirements they make on their dealers.
6 Skoda OVERALL SCORE sUP 15
83%
Skoda has clearly listened to its dealers this year – it’s up 15 places on 2011’s survey. Marketing, brand awareness and accessibility all earned ‘faultless’ scores while other areas, apart from the brand’s bonus structure, all returned ‘excellent’ scores. From this year’s survey, it certainly seems to be a good time to be a Skoda dealer.
5 MG OVERALL SCORE NEW ENTRY
85%
4 Jaguar
86%
It’s the first time we have welcomed Jaguar to the Car Dealer Power survey, and the British marque can be content in having happy dealers. The company received a score of ‘excellent’ ratings in several categories and is deemed to be ‘faultless’ in warranties, aftersales, accessibility and in the supply of new cars.
Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment
Average
Poor
Average
Poor
Good
Average
Poor
Good
Average
Poor
✔ ✔ ✔ ✔ ✔ ✔ ✔
Excellent
Good
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
Excellent
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
Faultless Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment
Good
✔
Faultless Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment
Excellent ✔ ✔ ✔ ✔ ✔
Faultless
Another new entrant into the survey and it’s another British marque. It’s been a bit quiet from MG over the last few years, but now more dealers have joined the network and the MG6 GT and Magnette models have appeared in showrooms. The company has received a set of results it should be proud of.
OVERALL SCORE NEW ENTRY
Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment
Excellent ✔
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ CarDealerMag.co.uk | 67
SURVEY.
3 Volkswagen OVERALL SCORE sUP 5
T
88%
he German giant has risen five places over its eighth-place finish in last year’s survey, and takes third place on this year’s podium. ‘Excellent’ scores were notched up in a range of crucial areas, with finance offers and new car supply all rising. One respondent said: ‘Low-rate PCP offers across all models are great.’ Aftersales was one area that was really applauded by dealers, with one declaring: ‘Volkswagen provides a fantastic level of service when it comes to aftersales.’ Long a Volkswagen speciality among consumers, it seems VW’s television and print advertising hits the right notes among the dealer network. One dealer said ‘they’re the best of any manufacturer’ – and brand awareness is among the highest. However, not all dealers were happy. Concerns were raised over return on investment. One said: ‘The return is awful, and is predominantly a direct result of the manufacturer’s actions.’ Another respondent criticised the requirements made on dealers – ‘the standards are ridiculous’ – and someone said ‘the franchise is high-cost and high commitment’. The overwhelming reaction was positive, however.
68 | CarDealerMag.co.uk
Faultless Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment
Excellent
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
Good
Average
Poor
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2 Suzuki OVERALL SCORE sUP 5
L
91%
ike Volkswagen sitting in third, Suzuki has also risen five places. The Japanese maker missed out on the top spot by only a few points, showing it really is on the rise. In fact, the maker is consistently improving its market share and selling more cars to happy customers. Dealers are happy, too. Warranties, marketing, brand awareness, the internet, used cars and forward planning all netted ‘excellent’ scores, while all the other categories achieved a ‘faultless’ rating. Supply of new cars was one area that generated a lot of comments – of particular note was one respondent who said: ‘New car supply is certainly better than most. ‘Generally you won’t wait any longer than one month, and dealer transfers are very easy to do.’ Return on investment was applauded too: ‘We have been a dealer for two years, and it is starting to pay back already!’ However, concerns were raised with Suzuki not keeping dealers up to date with new products, and one dealer highlighted a lack of support from Suzuki as far as used cars were concerned.
Faultless Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment
Excellent
Good
Average
Poor
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
CarDealerMag.co.uk | 69
SURVEY.
1 Hyundai OVERALL SCORE sUP 11
94%
Y
ou’ve got to admit Hyundai has gained a lot of momentum lately. It has a host of new dealers on its books and plenty of new product in the form of the new i30, i40 saloon and tourer, refreshed i20 and the sporty Veloster. But momentum does not equal contented dealers. Without clear strategies, good bonus structures and a strong supply of product to satisfy customers, that wave of confidence is worthless. Happily, however, it seems Hyundai has got just the right balance. The Korean firm received a stunning set of ‘faultless’ and ‘excellent’ scores – that’s no easy thing to do. And Hyundai dealers were the most vocal of all our respondents. In regards to finance, comments included: ‘With the launch of the 6.9 per cent APR PCP combined with finance deposit allowances of
Faultless Finance offers Warranty Aftersales support Marketing Brand awareness Accessibility Internet New car supply Used cars Forward planning Requirements made on you Bonus structure Return on investment
70 | CarDealerMag.co.uk
Excellent
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
£1,250, we have seen a massive uptake in finance.’ The five-year warranty was described as ‘a benchmark’ and ‘possibly the best in the industry’. Major football sponsorship and different tactics like Piccadilly Circus marketing activities were said to be ‘pushing the brand forward – great news for dealers’. Concerns were raised over new car supply however. One respondent said: ‘Hyundai is suffering from huge increases in volumes. The systems controlling build and supply are not adequate.’ Another mentioned forward planning: ‘There’s too much focus on monthly target achievement and not enough on forward planning and dealer profitability.’ However, gripes were few and far between. Our congratulations go to Hyundai.
Good
Average
Poor
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CarDealerMag.co.uk | 71
66%
OF PEOPLE CHECK REVIEWS BEFORE PURCHASING A CAR
BOOST YOUR SALES BY 18%* ON AVERAGE BY QUICKLY COLLECTING HIGH VOLUMES OF ENGAGING, GENUINE AND SHARABLE CAR REVIEWS AND PUBLISHING THEM ACROSS YOUR SITE, ADVERTISING MATERIAL AND THE SOCIAL WEB.
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SURVEY. CAR OF THE YEAR
W
e asked our readers to put their franchise and personal prejudices to one side, and vote for the car that has really brought the biggest change to the UK market in 2012. We say it time and time again, but the maker of this car really is changing brand perceptions. It all began in earnest in 2010 with a certain SUV, and since then the momentum hasn’t stopped. Our readers said that this car is not only a dramatic step forward over its predecessor, but it also manages to take on the best-selling
THE WINNER: KIA RIO car in the UK – often beating it in magazine road-tests – while also undercutting it on price. The winner of the Car Dealer Power 2012 Car of the Year is the Kia Rio.
Kia UK MD, Michael Cole, accepts his award from Mike Brewer
MANUFACTURER INITIATIVE OF THE YEAR
THE WINNER: BMW OLYMPICS
C
Mike Brewer hands over the award to BMW’s Gavin Ward
ar manufacturers spend millions of pounds a year on initiatives to drive more customers into dealers’ showrooms. These can range from product placement in films to sponsoring our national football team. However, our winner is a car company that has managed to seal a very high-profile deal, guaranteeing its products and brand will be beamed around the world on televisions this summer. Off the back of this deal, its dealer network has sponsored local athletes, arranged a variety of
BEST MANUFACTURER MARKETING SCHEME
M
anufacturer marketing schemes can make or break a car. If it’s a good one, customers are sure to walk through the door, but get it wrong and customers will stay away. Our winner has long been at the cutting edge of advertising and marketing activities. Whether it was through humour or selfcriticism, they’ve really shaken up how a car can be advertised. This firm’s latest marketing activity centres around the notion of fun – a key characteristic of its all-important city car that’s aimed 74 | CarDealerMag.co.uk
special events, and can look forward to selling some uniquely branded models too. Our survey respondents voted for BMW and its Olympic sponsorship programme to be the winner of 2012’s Manufacturer Initiative of the Year award.
THE WINNER: SKODA CITIGO
at young buyers, and it’s really caught the attention of our readers. Our readers voted overwhelmingly for one clever Czech brand and the marketing campaign surrounding its new city car. The winner for 2012 is Skoda with its new Citigo.
Skoda UK’s Michelle Henniker and Camilla Scanes accept their award
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The SUPPLIERS I
t’s now the time for the suppliers to bask in their glory. Dealers couldn’t run their businesses without them as they not only make their lives easier but help to make them more money too.
This year was not only the largest in terms of survey respondents, but we also increased the number of categories to 29. We asked our survey respondents to tell us which companies they used in the respective categories, and how they rated them – and we were inundated with responses. And to prevent the big boys from cleaning up, we let the smaller firms have their right to shine by weighting the results. Service, it would seem, is key as the vast majority of our winners were described as being great providers of customer service. In each category we’ve awarded a winner and two runner-up places. Considering the level of competition, the companies and products listed as runners-up should be proud of themselves. More than 250 companies are mentioned in the Car Dealer Power survey 2012. And the final result was judged by YOU. Those winners were invited to our special awards night.
Success was on the cards for many guests at the awards!
THE EXTRA MILE AWARD Winner: National Car Cleaning Company Highly commended: Autotorq Highly commended: Trusted Dealers THIS is a new category for the Car Dealer Power Awards 2012 and one that looks for the company, product or service that, well, goes that all-important extra mile. Like all of our categories, we left it to our readers to choose who they thought was worthy, and we received a wide range of nominations. But the winner was selected because they come top in an area of the car retail business that often gets overlooked. Their team of operatives are ready to be dropped into a dealership to deliver the very best service, and they have a large number of happy clients – both large and small – across the UK. The winner is National Car Cleaning Company. Finishing closely behind and taking the highly commended places were Autotorq and Trusted Dealers.
Mike Brewer presents the award to Justin Macal from National Car Cleaning Company CarDealerMag.co.uk | 75
SURVEY. warranties
GAP
Winner: WMS Highly commended: Car Care Plan Highly commended: Mondial
Winner: Autoprotect Highly commended: Mapfre Abraxas Highly commended: Santander Eric Stone accepts the award from James Baggott
Warranties have always played an important role in the car-buying process. Car manufacturers have finally followed in the footsteps of independent warranty companies in realising that an excellent warranty can influence a customer’s buying decision. Customers want to feel as though they are being looked after by the dealer and the warranty company
and they want peace of mind. That’s not forgetting the upsell opportunities for car dealers. You said our winner offered excellent products that made your customers feel safe and sound and, with the backing of Formula One legend Sir Stirling Moss, dealers could take advantage of some fantastic marketing opportunities.
WEb design – franchised
Autoprotect’s Michael McVeigh receives the award from Duncan Chappell
It’s the last thing customers want to think about on picking up a new car, but accidents and thefts do occur and if they’ve bought the car on finance, they need to ensure they are protected against the financial shortfall. Hence why GAP products are a popular route for customers to make up that gap. Our survey respondents said the winner’s GAP product was
web design – independent
Winner: GForces Highly commended: Spidersnet Highly commended: Motorcommerce
Winner: Razsor Highly ccommended: Spidersnet Highly commended: GForces
Guy Howland of GForces receives the award from James Baggott
One look at our annual Ewards will show that the bar in franchised dealer websites is continually being raised. Customers expect more and more from a franchised dealer website. They expect them to be bold, informative, and packed with useful facts, images, and tools – and they expect the website to be simple and easy to navigate. Our winner is one that has 76 | CarDealerMag.co.uk
simple to sell and – thanks to the option where customers can transfer their protection to a new car – high levels of customer satisfaction were guaranteed. Our winner is Autoprotect. Our highly commended winners were both said to offer outstanding products to their customers and ensured they were well looked after should the worst occur.
won countless Car Dealer Ewards. They continually attract new dealer customers to their business by offering a great service and transparent pricing. You voted the winner to be GForces. Following closely were two firms dealers loved doing business with, who offered great support and keen pricing. Spidersnet and Motorcommerce were highly commended.
Razsor’s Andy Hill is presented with the company’s trophy by Duncan Chappell
Like the franchised dealer category, the independent sector is incredibly competitive. We’ve seen competition to offer the best service to dealers grow immensely over the past 12 months with new firms coming into the sector promising to offer dealers extra clout when it comes to web design. We’ve also seen that, as customers demand more from franchised dealer
websites, their expectations have risen for independent dealers. An independent dealer’s website used to be forgiven for offering less visual bang than a multi-brand franchised dealer’s site, but those days are coming to an end. You said our winner has a friendly way of doing business, and provides unrivalled support from the beginning to the website’s launch.
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SeO services
pr agency
Winner: Spidersnet Highly commended: Google Highly commended: GForces
Winner: Golley Slater Highly commended: Staniforth Highly commended: BIG Marketing Raphael Millin from Spidersnet accepts the company’s award from James Baggott
It’s one thing for dealers to have spent their money on a bold, flashy website that customers love, but there’s little point if their website is lost among the thousands of other dealer websites offering the same types of products. Dealers are starting to realise the huge benefits having a decent SEO programme can offer, and they are hunting down the companies that can
help them in their droves. Our winner clinched the award because dealers said they experienced more traffic thanks to this company’s work, while their offer of a free consultation on how to improve SEO really sweetened the deal. The winner is Spidersnet, while survey respondents praised our two highly commended companies for their friendly approach.
recruitment
Anna Shackleton and Phillippa Holmes with Duncan Chappell
Dealers need to do all they can to get customers into their showrooms, and creative campaigns and special events can bring great results. But how do they spread the word? Through press releases and good PR in the hope that it’ll get picked up in local newspapers or publications like us. This is why dealers need a PR agency – professional people who
training
Winner: JGA Highly commended: CARS Highly commended: Perfect Placement
Winner: Fourmative Highly commended: BVDB Limited Highly commended: Symco Training
No-one from JGA was present at our awards night but we made sure their trophy was safely delivered to them Finding the right staff to be the face of a dealer’s business, is one of the hardest things they have to do. But many dealers do not have the time or the expertise to advertise, interview and employ the right member to join their team. This is when a recruitment company can help. These firms can help find and analyse the perfect applicant, saving
know how to make news of a dealer’s VIP event sound like poetry. Our winner is one who respondents said was ‘helpful’, ‘easy to do business with’ and turned around ‘interesting and creative’ press releases quickly. Our winner, as voted for by you, is Golley Slater. Followed closely by two firms praised for their great work ethic and ability to write a good story!
dealers time and effort. But there are many companies out there who do this – finding the right company is tricky. A poor company who employs the wrong person could cost the dealer a lot of time and embarrassment. You said our winner, JGA, is a specialist in the field, has built up an enviable reputation in the industry and can count many of you as clients.
Colin Gleghorn from Fourmative receives the award from Duncan Chappell
Employing the right staff and making sure they’re armed with the tools to do the job go hand in hand. Even the best and most able employee needs to be trained properly. A dealer’s workforce needs to deliver the best customer experience or the customer will be heading straight for the door. What’s more, staff need to be
versatile, too. Customers are using various means to contact a dealer, so employees need to be adept at all forms of customer contact. Survey respondents said Fourmative always went the extra mile in ensuring they have the best trained staff. And their well-thought-out and thorough training programmes were also praised. CarDealerMag.co.uk | 77
SURVEY. DEALER MARKETING AGENCY
PRIME FINANCE
Winner: Wyndham Leigh Highly commended: Grovewood Highly commended: Staniforth
Winner: Black Horse Highly commended: Santander Highly commended: Barclays Malcolm Hay from Wyndham Leigh receives the award from James Baggott
MUCH like the services of a dealer PR agency, dealers need help when it comes to the world of marketing. Marketing is completely different from advertising a car. It’s all about attracting the reader with interesting and original adverts. So whether that’s placing a fullpage advert in the local paper or getting a dealer’s message out there
on a billboard, a marketing agency is a crucial ally to have. Survey respondents said our winner is ‘extremely professional’ and ‘highly adept at getting the message to a dealer’s audience’. The winner, as voted for by you, is Wyndham Leigh. The well-deserved highly commended places go to Grovewood and Staniforth.
SUB-PRIME FINANCE
Tim Ward, business development manager at Black Horse, accepts his award from Duncan Chappell FINANCE is another crucial part of the car-buying process, and one that can literally make or break a sale. Indeed, the number of customers turning to finance to fund car purchases is up, and it doesn’t look as though this trend is likely to stop. But with more customers turning to dealers for finance, dealers need the right products to ensure they
FINANCE SErviCES AND TOOLS
Winner: First Response Highly commended: Black Horse Highly commended: Moneybarn
Winner: Motonovo Highly commended: Black Horse Highly commended: Santander Jon Such (centre) and Ben Garside receive First Response’s award from James Baggott
SUB-PRIME finance is a tricky area for dealers to be involved with as there’s often a lot of risk, but by investing in a partnership with a good sub-prime finance company, dealers will ensure they do not lose the opportunity to capitalise on a very lucrative area of the car market. Competition was fierce in this category this year. 78 | CarDealerMag.co.uk
are as competitive as possible, and know they have a reliable finance partner as their side. Respondents said our winner is not only easy to communicate with, but quotes quickly and makes decisions with minimal hassle. The winner for 2012 is Black Horse. Highly commended are Santander and Barclays.
Respondents said the winner offers tempting finance deals, is always happy to answer their questions and is extremely flexible. The winner is First Response. Taking the highly commended spots were Black Horse and Moneybarn. Respondents praised these firms’ excellent customer service and speedy decision-making.
Neal Holder and Gary Manghan from Motonovo with Car Dealer’s Duncan Chappell DEALERS tell us it’s not just the finance products that help seal the deal on a car purchase. Customers need certain other things to help them along the way. With the rise of the internet, customers have turned into the virtual equivalent of the forecourt tyre-kicker. Useful finance tools on dealers’ websites are helping to eliminate
these virtual tyre kickers, and are also helping customers realise that those dream motors could become a reality with the right finance deal. Our winner – Motonovo – has made this area their own. Taking their well-deserved highly commended places are Black Horse and Santander.
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FINANCE MARKETING INITIATIVE
ONLINE ADVERTISING (NEW CARS)
Winner: Bridford Winner: Auto Trader Highly commended: Black Horse Highly commended: Motoring.co.uk Highly commended: VW Financial Services Highly commended: Exchange and Mart Bridford weren’t at our awards ceremony – but we made sure they received their trophy!
FINANCE marketing is a crucial area dealers need to focus on. We all know that finance is not the most exciting thing to tell customers about, but if the message isn’t out there, customers are highly unlikely to turn to finance to buy their next car. The winner of this category is one that is creative with its campaigns.
Our dealers said one example of this firm’s creativity they particularly liked was a sales incentive to win a trip to Monaco last year. Dealers also said the firm is a ‘pleasure to do business with’. The winner for 2012 is Bridford. Marketing initiatives from Black Horse and Volkswagen Financial Services won praise too.
ONLINE ADVERTISING (USED CARS)
Auto Trader’s Sharon Randall with Duncan Chappell
ADVERTISING new cars by dealers used to consist of a full-page advert in a local newspaper or magazine. It used to work and was a practical use of a dealer’s marketing spend. But those times have now passed. Thanks to the internet, dealers can advertise brand new cars as in the same way they would a used car. Dealers can now advertise their
DEALER-FRIENDLY ADVERTISING PORTALS
Winner: Motors.co.uk Highly commended: Auto Trader Highly commended: Exchange and Mart
Winner: Trusted Dealers Highly commended: Auto Trader Highly commended: Motors.co.uk
James Baggott presents the trophy to Stephen Jury from Motors. co.uk
AS WITH new cars, advertising used cars has changed hugely over the past few years. With the rise of the internet, the opportunities for dealers to advertise their prized stock have grown enormously. But it is not simply a case of typing a few words and throwing some pictures onto the internet. Dealers need to be able to use online
latest new car deals on a range of car classified websites. Our respondents said the winner’s new cars section is bold and easy to use, and boasts engaging videos that educate their customers. The winner is Auto Trader. Motoring.co.uk and Exchange and Mart took the highly commended spots in this category.
advertising portals with confidence and feel as though they are getting the best experience possible. This was a closely-fought category, but our winner – Motors. co.uk – won because of their creative marketing campaigns and excellent customer service. Highly commended were Auto Trader and Exchange and Mart.
Trusted Dealers is a consortium of some of the UK’s largest and bestknown car dealers
A USED car classified site may be okay for Joe Public or even a dealer who sells a car a month, but what about independents and franchised groups? They need services that are personal to them and are suitable for their vast uploading sprees and lead generation. Car dealers need dealer-friendly portals. These are websites that are designed to cope
with dealers’ needs and, naturally, be as friendly as possible. Our winner, Trusted Dealers, is unique in being a consortium of some of the UK’s largest and bestknown car dealers. Survey respondents said it’s ‘refreshing in a crowded market’. Taking the highly commended spots are Auto Trader and Motors.co.uk. CarDealerMag.co.uk | 79
SURVEY. SPECIALIST ONLINE ADVERTISING SITE
USED CAR VALUATION SERVICES
Winner: Dealer Auction Highly commended: Autotrade-mail Highly commended: Auto Trader
Winner: Glass’s Guide Highly commended: HPI Highly commended: Experian
Dealer Auction’s Gavin Smith receives the award from James Baggott
IN THE same vein as the previous category, the internet welcomes a variety of different advertising techniques. But one solution does not fit all, and what may suit one dealer may not suit another. Some used car classified sites are more than suitable for some car dealers, but there’s a vast number of there who require more bespoke
services and packages. This is where our Specialist Online Advertising Site Award comes in. It aims to search and celebrate the platform that is away from the mainstream, but still produces important leads and delivers the goods. This year’s winner is Dealer Auction. Highly commended were Autotrade-mail and Auto Trader.
PROVENANCE CHECKS
Vik Barodia receives the award from Duncan Chappell
THE importance of accurately valuing stock cannot be emphasised enough. When valuing a partexchange or buying a car, if a dealer gets it wrong, profits will vanish. And if they put a car on their forecourt at the wrong price, dealers may as well give up hope of a customer walking in. Dealers don’t have to thumb
LUBRICANTS
Winner: Experian Highly commended: HPI
Winner: Mobil 1 Highly commended: Fuchs Highly commended: Castrol Andrew Williams from Experian with Car Dealer editor James Baggott
AS ANYONE in the motor industry knows, this market is dominated by two big names. And it’s these two companies that make up our shortlist: HPI and Experian. It’s wrong to say customers are getting more picky about the car they’re choosing because they’ve always been like it. Selling a car with good provenance 80 | CarDealerMag.co.uk
through a fat valuations guide anymore. While they can do just that, there’s an array of online services that are far more accurate and can be accessed anywhere. This year’s winner is Glass’s Guide. Our highly commended winners, HPI and Experian, were also praised for their ‘fast results’ and ‘simple-touse systems’.
doesn’t just make good business sense, but also shows a dealer’s business is a transparent one. A provenance check can also give both the dealer and the customer peace of mind. Survey respondents praised our winner’s ‘quick responses’ and ‘straightforward paperwork’. Our winner is Experian. Highly commended is HPI.
Nick Trew, left, and Rebecca Gander from Mobil 1 with Duncan Chappell
IN THESE times of ever-stricter emissions, maintenance of a car is probably more important than ever. But, in order to convey the benefits of using the right oil, dealers need not only the right product, but also effective marketing tools to reach their customers. Our winner this year won in 2011 too. Respondents this time around
said the firm’s marketing activity on the race track was ‘second to none’, their vast range of quality products are competitively priced, and they love to display the strong branding in their showroom. Our winner is Mobil 1 Our highly commended winners were Castol and Fuchs – two firms who received warm praise.
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PAINT PROTECTION
ONLINE REMARKETING
Winner: G-3 Glasscoat Highly commended: Diamondbrite Highly commended: Supagard
Winner: BCA Highly commended: Dealer Auction Highly commended: Manheim
Graham Higton and Andy Bradbury accept G-3 Glasscoat’s award
IF THERE’S one product dealers really love, it’s paint protection kits. Why? Because they offer fantastic commissions, they’re a valuable upsell, and are an excellent way of generating repeat business. Customers, meanwhile, like the fact their cars are protected from the elements, and that they’ll never have to touch a polishing cloth
ever again. With so many products on the market offering their own benefits, you won’t be surprised to hear competition was fierce. Our winner – G-3 Glasscoat – sealed the deal due to its ‘can do attitude’, knowledgeable representatives and quality products. Diamondbrite and Supagard were awarded highly commended.
PHYSICAL AUCTION
Tim Naylor from BCA accepts the firm’s award from Duncan Chappell
MORE and more dealers are choosing to buy or sell from the comfort of their own offices – especially when we’ve been enjoying a ‘hot’ summer this year. And with a number of auction firms turning their hand to online buying and disposal, it’s becoming the savvy way to do business. Dealers said they voted for this
TRADE-TO-TRADE LEAD GENERATION
Winner: Manheim Highly commended: SMA Highly commended: BCA
Winner: Autotrade-mail Highly commended: Tradeouts Highly commended: Dealer Auction Sarah Marley and Gary Johnson accept Manheim’s award
WHILE it’s true that many dealers are turning to their computers to buy and sell stock, there’s still a vast number of them who prefer to do it the traditional way. Whether it’s the buzz of the auction hall or the feeling of doing battle against rival dealers in person, we can understand why so many dealers still make the trip to
company due to its well constructed online system, friendly points of contact, and for the fact they make buying and selling online as easy as if they were in the auction hall. In this highly competitive category, respondents voted BCA as the winner. Our highly commended winners were Dealer Auction and Manheim.
a traditional sale. Again this was a tight battle to decide the victor, but the winner received heaps of praise from dealers. Respondents said the firm offers a modern, pleasurable and friendly auction room experience. This year’s winner is Manheim. Taking highly commended places were SMA and BCA who both won high praise too.
Kevin Watson from Autotrademail receives the company’s award from Duncan Chappell WHEN dealers are looking for a particular car, they can reasonably assume that there will be another dealer selling it somewhere in the UK. Trade-to-trade leads can give decent returns for dealers and can boost their bottoms lines. Our respondents said they wanted a service that guaranteed a large trade audience, and was a pleasure
to do business with. The winner, as voted for by you, is Autotrade-mail. With nearly 5,000 subscribers and the ability to advertise more than 1,000 cars a day, respondents said Autotrade-mail is a ‘class above’. Our two highly commended winners also provide solid and trustworthy leads. The places went to Trade Outs and Dealer Auction. CarDealerMag.co.uk | 81
SURVEY. in association with G-3 GLasscoat
CONSUMER LEAD GENERATION
DMS SYSTEMS
Winner: Contract Hire and Leasing Highly commended: Auto Trader Highly commended: Motors.co.uk
Winner: Contact Advantage Highly commended: Close It Highly commended: DMS Navigator
Craig Cooke with Car Dealer editor James Baggott
IT’S AN easy thing to say, but when sales are slow, dealers need to keep leads flowing. Every lead is important these days and shouldn’t be dismissed as anything other than crucial, but generating those leads is a hard thing for dealers to do. That’s why they need a firm that can work out when customers are ready to buy and how to prospect
them properly. Respondents said our winner is the best placed to help them in this sector, have extremely high levels of customer service, and are constantly revamping their stable of popular websites. The winner for 2012 is Contract Hire and Leasing. Taking the highly commended places were Auto Trader and Motors.co.uk.
INNOVATION OF THE YEAr
Bob Feltham from Contact Advantage, left, collects his award from Duncan Chappell
ANY NEW technology dealers introduce into their showrooms needs to make their lives easier. Whether that’s keeping track of customers past and present, ensuring the workshop is running at its optimal level or simply logging phone calls – it has to be of major benefit to the business to get the nod.
NEWCOMER OF THE YEAR
Winner: Car Care Plan Highly commended: Gemini Systems Highly commended: CitNOW
Winner: Bluecycle Highly commended: Tradeouts Highly commended: Trusted Dealers
Car Care Plan’s Jessica Balkow accepts the award from TV’s Mike Brewer
WE ASKED dealers to name the one company, product or service they thought had truly blown the competition away in 2012. We received a whole raft of entries that ranged from cars to nifty products, clever marketing schemes, and some old favourites. Dealer respondents told us they voted for this winner because it 82 | CarDealerMag.co.uk
Respondents praised this category’s winner for being both highly usable and easy to get to grips with. Dealer principals told us they also loved the fact it helped them keep a close eye on exactly what is happening. This year’s winner is Contact Advantage. Our highly commended places went to Close It and DMS Navigator.
brought something new to the market. The winner is Car Care Plan and its ‘Cosmetic Warranty’. The warranty covers cars involved in knocks and scrapes and offers dealers great levels of commission. Highly commended were Gemini Systems’ clever ‘EVHC’ – or Electronic Vehicle Health Check System – and CitNOW video products.
Mike Brewer presents the trophy to Stuart Atkinson and Andy Latham
FOR OUR Newcomer of the Year award we asked our readers to name the company that has achieved something truly outstanding. Dealers voted for the winner because of its novel service, professional attitude, and because it offers something totally different. This year’s winner is Bluecycle’s ‘Retail Ready’ scheme. Survey
respondents like the service from the car salvage experts that offers cars that are completely ready to be sold on dealers’ forecourts. Taking the highly commended spots were the UK dealer group consortium Trusted Dealers, and Tradeouts – a trade-only dealer network. Respondents said these two services really appealed. [CD]
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focus on.
Guide to A BETTER WORKSHOP TRIBOS
The paint protection system that leaves others in its wake . . . W: Triboscoatings.com T: 01202 757785
W
hen it comes to the workshop, there are many products and services that are perfect to improve bottom lines and profit margins. However, one type of product could well be overlooked: paint protection. Typically a favourite among new car sales people, paint protection can be a really useful product for workshop and aftersales staff. But while the market is well catered for these types of products, perhaps dealers should be taking a look at one company that really strives to deliver the very best. Meet Tribos, whose provenance in the paint protection world takes some beating. ‘Our products were originally developed for the marine market,’ says Tribos national sales manager (automotive) Alan Graham. ‘The product was really born for use on superyachts which is a very difficult environment to survive in. The product needs to be of top quality for those harsh conditions.’ Tribos, part of Hielaman Ltd, then entered the
‘‘
Dealers will be selling something that is as profitable or offers more profit than our competitors.
aviation world, and 18 months ago decided to make their entrance into the automotive sector. ‘In the motor trade, we pitch our products not as a luxury offering, but as a quality one,’ says Graham. ‘Our products have proven durability in the world’s harshest environment.’ The first car manufacturer approval has come from the Japanese giant Nissan. Tribos provides protection products for every Nissan – from the Pixo city car right up to the GT-R supercar. But, as we all know, there are many protection companies out there. What makes Tribos different? ‘That’s easy to answer,’ says Graham. ‘We’re different in two key areas. Firstly, where the product has come from really marks us out, as protection products in the marine world need to be extremely tough as they have to cope with very harsh conditions. The provenance of the product is very different from anything else on the market. ‘Secondly the way the products are applied also makes us different from our competitors. A lot of products on the market tend to be wipe on, wipe off. Importantly, we also have a very quick process and it is comprehensive, but the results are truly jaw-dropping.’ The firm’s paint protection product is a polymer coating specially designed to give the very best durable protection. It also contains titanium oxide to protect against UV damage, while their glass protective coating is innovative in creating a strong hydrophobic chemical barrier to keep a customer
car’s glass cleaner and clearer. Tribos also offers alloy wheel and fabric protection. ‘Tribos is a very credible feature on a used car from an aftersales perspective,’ says Graham. ‘It is very well suited to the aftersales side of the trade; rather than on an 18-month old car where a ‘conventional’ product is applied on top, which makes no real difference to the car, our process really does make a difference.’ There are many other benefits for dealers, too. For those dealers who really get to understand the product, they will then get enthused by the product’s quality and therefore sell more of it, believes Graham. And also, thanks to a large product range, the margins are greater. ‘Dealers will be selling something that is as profitable or offers more profit than our competitors, and they will be safe in the knowledge they are selling something that is genuinely of a high quality.’ Need support? Tribos has that covered, too. ‘We have a nationwide team who are IMI accredited but we can also train dealer’s valet staff on how to apply the products. With Nissan, dealers apply the products themselves to the ‘‘normal’’ cars, but we supply a trained applicator for GT-Rs,’ explains Graham. ‘We have a field-based team of 25-30 years of combined experience that offer support to dealers. We offer bespoke training and workshops to service staff, so they can advise customers about the product in the very best way.’ CarDealerMag.co.uk | 85
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focus on.
GUIDE TO A BETTER WORKSHOP PRO-ALIGN
Get in line for bigger profits! W: pro-align.co.uk T: 01327 323007
D
ealerships looking to boost their Paul Beaurain, Pro-Align managing director. aftersales profitability should head Apart from the attractive profit margins, ‘straight’ to professional four-wheel dealerships can also benefit from an excellent return alignment, advises Pro-Align, one of the on investment, plus increased customer satisfaction UK’s leading alignment specialists. and retention. Indeed, compared to services such as brakes, While for customers, a professionally-aligned exhausts and tyres, wheel alignment offers the best car can result in reduced tyre wear, better fuel profit margin by far – around 80 per cent. consumption, improved vehicle handling, plus safer What’s more, with nine out of 10 cars in the UK and ‘greener’ driving. suffering some form of misalignment, there are Choosing the right aligner is critical. With plenty of opportunities. advances in vehicle steering and suspension ‘If you’re looking to improve aftersales systems, and in alignment technology itself, it’s profitability, then professional four-wheel alignment important to select an aligner that is not only has to be one of the best services for this,’ explains capable but also meets the motor manufacturers’
approvals. Dealerships can be rest assured that they are dealing with a world leader when selecting from the Hunter equipment range supplied by Pro-Align. Hunter four-wheel aligners not only meet but exceed standards set by all motor manufacturers from around the world. Hunter has also worked closely with MercedesBenz, BMW and VW Group to build and customise equipment to meet their exacting requirements. Pro-Align works closely with all of its customers, offering full support and guidance to ensure best practice in line with motor manufacturer recommendations.
*
*Based on 5 year lease figure, Subject to Status, Written quotations available on request
Link to our ALIGNMENT PAYBACK CALCULATOR to see how you could achieve this level of return on investment with a Hunter HawkEye Alignment Bay!
86 | CarDealerMag.co.uk
THATCHAM AUTOMOTIVE ACADEMY
It’s time to repair, not replace W: thatcham.org/r2r T: 01635 293174
W
hen it comes to cars that have been involved in accidents, the trend over the past few years has been to replace damaged parts rather than repair them. After all, the construction methods used in vehicle manufacture are far more complicated and hi-tech than they were a decade or so ago. But if you can break that pattern and consider repairing BEFORE replacing, you and your workshop could be reaping significant benefits – saving time and increasing profitability. All it takes is the acquistion of some specialist knowledge – and that’s where Thatcham Automotive Academy comes in. Its new
Ready2Repair training programme can equip staff with the crucial know-how they need to repair parts on a vehicle – not replace them. We spoke to Lesley Upham, commercial director with responsibility for the repair community at Thatcham, who explained the Ready2Repair programme works in two ways. Firstly, assessors are trained so they can decide whether parts on a car can be repaired rather than replaced – and then workshop staff are taught how to carry out the work. She added: ‘We’re providing that training route and we’re supporting that with something new to Thatcham – repair recommendations.
‘We’ve looked at the top 12 most estimated vehicles in the UK car parc and produced recommendations on how you repair the panels without replacing them. So we’re giving knowledge to those who are deciding if a vehicle can be repaired, knowledge to the person who is doing the repair and the training to back all that up.’ The benefits for a dealer workshop are that repairs can be carried out more quickly and economically. Lesley said: ‘It is quicker because obviously there’s less intrusion into the vehicle. For the customer, the car is being repaired without being pulled around too much. And it means more work is going through bodyshops. It’s a win-win situation.’ [CD]
CarDealerMag.co.uk | 87
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Feature.
£50 Catch up carchallenge
Baggott’s made a bit of a boob and Brewer is on the comeback trail as our duo attempt to turn £50 into as much money for automotive charity BEN as possible. Here’s the latest...
James’ story
O
k, I fudged up. I admit it. Buying that hideous blue shopping cart with the dreaded Daewoo badge was a mistake. I’ve learnt my lesson, had my fingers burnt – now it’s onwards and upwards. After a hiatus last month – very short deadlines meant we had little to tell you – there’s been some action on the £50 Car Challenge front. First a quick recap. I started with a Peugeot 406 which I sold very quickly to a friend of a friend for £1,400. Tasty. I then bought a Daewoo rot box for £400 from Richmond Hyundai. Stupidly, I made a mistake with the paperwork and found out it had only a few days’ MOT left, instead of the few months I’d thought it had. Unsurprisingly it failed its MOT and I was faced with scrapping it, shelling out to repair it or selling it as spares or repairs. After weighing up my options I decided to choose the latter. Repairing it just didn’t make
sense – it had failed on emissions so I could have thrown a wedge of cash at it and not had any chance of making that back come resale time. So I listed it on eBay with an honest description (It’s shagged) and hoped for the best. I had absolutely no idea what it would make. In fact I was preparing myself for the worst and a major loss. But then the bids started to appear. By the time it had run its seven-day course it was up to £275 which is what it eventually sold for. That’s a £125 loss I’ve got to suck up and a rather expensive lesson in the used car trading game. Anyway, with £1275 in my kitty I’m still head of you Brewster, and that’s the way I plan to keep it…
‘‘
I was preparing myself for the worst – a major loss.
Mike’s story
S
lowly, slowly, catchy monkey. Or catchy a tall, lanky car magazine editor. Before I tell you about how I’ve started to claw back the deficit, let’s take a look back at the dodgy hand Car Dealer Ed has handed me so far with this monumental challenge. First he stitched me up with the crappiest Clio I’ve ever seen. University students have refused to drive better cars and I had to find a dole-dweller to flog it to. With a Blackpool £20-a-night B&B specification level I really did have my work cut. Fortunately they don’t call me the best car dealer in Britain for nothing. After a quick wash and blow dry it looked a bit more Saturday night than Sunday morning and I managed to find a victim, sorry buyer, for her on that trusty purveyor of tat website, eBay. I love that site – it’s the only place you can guarantee you’ll find
a buyer for whatever crap you’ve got to sell. I’m thinking of listing some belly button fluff just to see if I can get a bid… But that’s another story. Back to this one. The Clio sold for £410 and I managed to bag a bleeding bargain of a Ford Ka from a dealer mate for £400. It needed an MOT, but I was confident someone (Edd) could help me get a ticket on it. It passed. But then disaster struck. After a few weeks of using it as a shopping trolley at the weekends, steam started seeping out of the engine bay on the dual carriageway. It was the sodding head gasket. Great. I could have got it repaired, but decided instead to trade it on. I called a mate who’s got six Ford Kas out the back of his site in varying states of corrosion and he offered me £500. I did the deal and banked the cash. So, Baggott, I manage to flog a Ka with a busted engine for a profit and you make a loss on a Korean rollerskate. I may still be behind, but keep on like that son and I’ll be overtaking pretty soon. See you next month.
CarDealerMag.co.uk | 89
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DATA FILE.
TopTips n
Our helpful feature that gives you hints and tips to improve your business
It’s all about teamwork
It often seems hard to get everyone pulling in the same direction – but it can be done. Dave Brown reports
T
eamwork: A vital component of a business’s success? Or a rather outdated concept in these cut-throat recessionary times? Well, even those of us who tended towards the second of those two views must have had their perceptions changed by Team GB’s stunning success at the Olympics. Our impressive haul of gold medals showed what can be achieved with everyone pulling together in the same direction, with a common goal and determination to get there. Imagine if you could harness that spirit and transfer it to your business! The results could be astounding. As usual in these ‘top tips’ features, we consulted a number of experts in the field for their help and advice on the subject – and we have some very interesting ideas for you. All our experts highlighted the importance of effective communication. Kay Saunders, campaigns manager, business sales at Volvo Car UK, confirmed: ‘Communication is key to good teamwork and with an emphasis on listening to its employees and stripping communication methods back to the core, Volvo
Car UK proves that when everyone has the same vision, large corporations can all work well together. ‘To ensure everyone in Volvo’s team, from the head of communications to the sales person in the showroom, is pulling in the same direction, Volvo works directly with its dealers. Eliminating PowerPoint slides and middlemen avoids the possibility of miscommunication and ensures messages are being communicated effectively between dealer staff and the management team. This ensures feedback can be acted on more quickly.’ Jonathan Such, regional sales manager at First Response Finance, said: ‘As a team, knowing and agreeing how you are going to work together is a fundamental foundation. Far too many times managers agree this by themselves, and expect their teams to come into work motivated and ready to do a good job. Unfortunately this approach does not create ‘‘buy in’’ or ‘‘commitment’’ from the team and ultimately leads to many characteristics of a dysfunctional team. ‘Following on from this, team members like to be
TAKE AN INTELLIGENT APPROACH
Avoid conflict, prioritise trust CAR DEALER spoke to Maureen Bowes, a relationship management coach at People Intelligence. The Hampshire-based company delivers coaching and training with the specific aim of helping people fulfil their potential, as individuals and as part of a team. She had the following advice for us. 1. Minimise conflict: Working well as a team takes time and energy. It also means dealing with conflict along the way. All too often people duck conflict or try to flatten it: neither approach works. Instead make time and space to find the right solution. 2. Proiritise trust: Compare how you perform when trust is high to when it’s low. Trust keeps
the wheels turning – without it you’ll struggle. 3. Focus on solutions: Don’t get pulled into negativity when things go wrong. Great teams build resilience by focusing on solutions, looking at what is to be learned, what good can come from the problem and then they take action and move on. 4. Build on what works: Take stock and reflect on what works. Who’s good with what issue? Who’s the ‘go to’ person? Find your winning formula and use it. Renew your success. 5: Notice and give recognition: Reward effort as much as success. The danger with only recognising success is that people stick with what they know and don’t take chances.
Team GB showed us what successful teamwork can achieve with a huge haul of gold medals at the Olympics listened to, and rarely appreciate a leader who acts as though they are in an ivory tower. Accept that you do not know best and seek the opinions of others. Show a genuine interest in a person’s development and progression. Team members like to focus on themselves and feel like they are being looked after and you have a genuine and thorough care for their futures.’ Tim Smith, commercial director at website design company GForces, said: ‘Effective communication and collaboration are key to maintaining healthy organisations, but nurturing this sort of culture requires an investment of time and effort. ‘At GForces we hold regular events which help the whole staff gel into a cohesive unit, and also encourage teams to undertake activities which will help them work collaboratively. ‘In order to add a little something to our quarterly meetings, we don’t just do the usual round of presentations, rather we make it an event where staff at all levels within the business will be able to meet their peers and enjoy themselves. ‘For one of our meetings we tasked each team with making a short video as a contribution to help get them even more involved. Individual teams take it in turns to dictate what they do with regards any teambuilding exercises. We put the teams in charge of their own budgets for such exercises, as they’ll know how to best direct the money.’ With thanks to... Maureen Bowes, peopleintelligence.com Jonathan Such, firstresponsefinance.co.uk Tim Smith, gforces.co.uk Kay Saunders, volvocars.com
CarDealerMag.co.uk | 91
DATA FILE.
Thestatistics Used Cars n SMMT Sales Data
Positive trend continues with new car sales up 9.3 per cent Encouraging news is mixed with a note of caution as economic turmoil continues
N
ew car registrations rose 9.3 per cent in the month of July, the latest figures from the SMMT reveal. The number of cars registered was 143,994, up 9.3 per cent – the fifth monthly gain in a row and the best of 2012. The SMMT has also revised its full-year forecast for 2012 to 1.97m units – up from 1.94m in 2011. ‘New car registrations rose 9.3 per cent in July, continuing the upward trend seen during recent months,’ said SMMT chief executive, Paul Everitt. ‘SMMT’s full year forecast is for 1.97m cars to be registered during 2012 suggesting a slight slowing of demand in the second half of the year. ‘International economic stability remains a concern for vehicle manufacturers and the UK market, but intense competition and new fuel-efficient products are creating great opportunities for motorists.’ ‘New car sales
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Dealer profits are generally healthy – this puts the industry in good shape.
1,100 new jobs JAGUAR Land Rover (JLR) has announced it’s to expand its workforce at its Castle Bromwich facility to support the launch of new Jaguar models. More than 1,100 new jobs have been created as part of JLR’s ambition to deliver 40 significant product actions over the next five years. The Castle Bromwich plant will this year manufacture the new 2013 Model Year XF and XJ ranges, and the XF Sportbrake derivative. 92 | CarDealerMag.co.uk
increased again in July with a boost to private registrations of 26.4 per cent,’ said Sue Robinson, director of the RMI National Franchised Dealers Association (NFDA). ‘Considering current economic data, it is encouraging that sales were up in July. However in light of speculation about the new car market, the NFDA feels that some caution should be made viewing the figures. ‘The Olympic Games may have caused distraction for consumers with the press reporting a drop in retail sales during the first week of August. Therefore, in order for the market to remain stable, the government should offer support by reviewing schemes that boost spending.’
The Ford Fiesta was the best-selling car in July
John Leech, partner in KPMG’s automotive practice, said: ‘This is a surprising result, particularly given that it is the UK consumer who is powering this recovery, with car sales up 10.5 per cent so far this year, offsetting a 15 per cent decline in car sales to UK companies and businesses. ‘Although consumer confidence in the UK remains at a low level, car makers are offering a higher-than-normal release of new models and large discounts to consumers. ‘Dealer profits are generally healthy and put the industry in good shape to respond to any future shocks to consumer confidence from the ongoing Eurozone crisis.’
Ford’s Fiesta continues to woo UK customers MARKET leader Ford continues to build on its UK market lead through 2012 with increased car sales and share to the end of July, compared with the same period in 2011. For the year-to-date (end July) total, UK car sales were 1,201,564 up, 3.5 per cent compared with 2011, while Ford car sales for this period in 2012 were 168,905, up 3.8 per cent compared with 2011. Ford’s strong car sales performance is headed by the Fiesta, which was again the best seller for the month as well as for the year-to-date. Fiesta sales for the yearto-date have increased from 58,338 to 67,103, compared with the same period in 2011, and its car market share
is up from 5.1 to 5.6 per cent. Putting the Fiesta’s performance into perspective reveals some interesting figures. In July the Fiesta had a margin of nearly 30 per cent over the month’s next top-seller and the Fiesta’s arch rival – the Vauxhall Corsa. The Blue Oval has sold more of the UK’s favourite supermini than Mercedes-Benz has sold of its entire model range so far in 2012 – 67,103 versus 54,405. The same goes for Peugeot – 59,624 units sold – and the Japanese giant Toyota which has sold 51,039 cars. In fact, the Fiesta accounts for 5.6 per cent of Ford’s total market share year-to-date.
SMMT sales data July/year to date July 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
69 496 67 9,094 118 7,302 846 422 5,344 0 3,712 18,527 3,619 5,226 33 892 127 5,593 3,436 578 17 15 1,825 6,615 23 2,914 319 8,313 27 7,142 702 19 2,547 24 2,388 4,238 333 84 130 1,398 5,740 17,999 13,435 2,016 54 66 143,884
% market share
0.05 0.34 0.05 6.32 0.08 5.07 0.59 0.29 3.71 0.00 2.58 12.88 2.52 3.63 0.02 0.62 0.09 3.89 2.39 0.40 0.01 0.01 1.27 4.60 0.02 2.03 0.22 5.78 0.02 4.96 0.49 0.01 1.77 0.02 1.66 2.95 0.23 0.06 0.09 0.97 3.99 12.51 9.34 1.40 0.04 0.05
SEAT -12.46%
LEXUS +84.08% Year to date (YTD) 2011
% market share
2012 % Change
86 694 80 8,041 93 8,064 998 53 4,540 1 2,639 18,245 2,866 3,937 27 966 140 4,466 2,113 314 45 44 1,569 5,950 36 2,438 486 7,289 52 6,582 497 24 3,625 173 2,728 3,371 315 0 73 1,172 4,586 16,202 13,639 2,191 127 57 131,634
0.07 0.53 0.06 6.11 0.07 6.13 0.76 0.04 3.45 0.00 2.00 13.86 2.18 2.99 0.02 0.73 0.11 3.39 1.61 0.24 0.03 0.03 1.19 4.52 0.03 1.85 0.37 5.54 0.04 5.00 0.38 0.02 2.75 0.13 2.07 2.56 0.24 0.00 0.06 0.89 3.48 12.31 10.36 1.66 0.10 0.04
-19.77 -28.53 -16.25 13.10 26.88 -9.45 -15.23 696.23 17.71 -100.00 40.66 1.55 26.27 32.74 22.22 -7.66 -9.29 25.24 62.61 84.08 -62.22 -65.91 16.32 11.18 -36.11 19.52 -34.36 14.05 -48.08 8.51 41.25 -20.83 -29.74 -86.13 -12.46 25.72 5.71 0.00 78.08 19.28 25.16 11.09 -1.50 -7.99 -57.48 15.79 9.31
676 4,654 549 75,099 781 71,816 9,657 2,028 42,674 0 29,197 168,905 31,130 40,394 329 7,999 1,308 39,071 29,511 5,329 99 186 16,859 54,405 553 27,528 3,868 62,290 272 59,624 4,641 174 22,122 200 21,574 32,314 3,015 504 1,364 14,166 51,039 133,931 109,240 19,313 599 577 1,201,564
%market share
0.06 0.39 0.05 6.25 0.06 5.98 0.80 0.17 3.55 0.00 2.43 14.06 2.59 3.36 0.03 0.67 0.11 3.25 2.46 0.44 0.01 0.02 1.40 4.53 0.05 2.29 0.32 5.18 0.02 4.96 0.39 0.01 1.84 0.02 1.80 2.69 0.25 0.04 0.11 1.18 4.25 11.15 9.09 1.61 0.05 0.05
2011
Figures supplied by SMMT
%market share % Change
780 7,182 665 69,962 680 68,670 7,940 366 40,525 3 25,765 162,726 28,889 35,513 189 7,854 1,187 31,747 22,073 4,428 263 257 19,032 47,642 163 27,058 6,598 55,960 347 57,849 3,456 311 40,439 3,682 21,228 27,605 3,113 10 1,567 11,771 42,898 143,661 107,971 20,022 662 563 1,161,272
0.07 0.62 0.06 6.02 0.06 5.91 0.68 0.03 3.49 0.00 2.22 14.01 2.49 3.06 0.02 0.68 0.10 2.73 1.90 0.38 0.02 0.02 1.64 4.10 0.01 2.33 0.57 4.82 0.03 4.98 0.30 0.03 3.48 0.32 1.83 2.38 0.27 0.00 0.13 1.01 3.69 12.37 9.30 1.72 0.06 0.05
-13.33 -35.20 -17.44 7.34 14.85 4.58 21.62 454.10 5.30 -100.00 13.32 3.80 7.76 13.74 74.07 1.85 10.19 23.07 33.70 20.35 -62.36 -27.63 -11.42 14.20 239.26 1.74 -41.38 11.31 -21.61 3.07 34.29 -44.05 -45.30 -94.57 1.63 17.06 -3.15 4,940.00 -12.95 20.35 18.98 -6.77 1.18 -3.54 -9.52 2.49 3.47
Smmt Has Removed The Following Brands As They Registered No Vehicles In The Uk In 2011: Cadillac, Corvette, Daimler, Dodge, HuMMER CarDealerMag.co.uk | 93
Are we serious about the automotive industry? Take a look below...
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..in association with GForces
Let’s not forget: the phone is crucial too How dealers can increase profitability by getting the most out of every sales call.
F
or most customers and prospects, the telephone remains the primary and preferred means of contact, and the challenge for dealers is to ensure that telephony doesn’t get left behind in fast-evolving customer contact strategies that rightly place emphasis on web-based contact. Car dealers’ time is increasingly taken up by day-to-day operations. In fact, 45 per cent of employees now work only 15 minutes or less without getting interrupted, and 53 per cent can end up wasting up to an hour a day on other tasks (according to callcenterhelper.com). Managing time, as well as inbound enquiries, is more important than ever. Maximising profitability across their business is a key factor for dealers, but telephony is an area that is often neglected, meaning leads can go unnoticed. Making changes to a well-established telephone infrastructure can also be daunting, but there are agencies and products that can help. Nowadays, digital agencies can undertake a full audit of a dealership’s existing telephony arrangements. From this, recommendations of how best to improve from a baseline situation are made. One real-life situation saw a dealer group save nearly £40,000 simply by upgrading to a network
solution, optimising contracts and reducing their number of redundant lines – simultaneously creating a platform ready for more sophisticated inquiry management solutions. This initial audit can ensure that telephony becomes part of a wider digital marketing strategy for car dealers. Introducing a modern phone system allows dealers to track leads as they move through the business, thereby merging with all forms of inquiry such as webmail and Live Chat. Trackable numbers and missed call alerts ensure that the productivity of inquiry handling staff is maximised. For example, with trackable numbers for individual departments, a dealership’s ability to effectively answer a customer’s query is greatly enhanced. This applies equally to an answered call or a call-back – all highlighted to the relevant staff through missed-call notifications or software that can transcribe the call and automatically email it to a specific person. Ensuring that calls are directed to the right individuals is only the first step, and the most advanced systems help dealers look at the bigger picture. Monitoring how calls are handled is a natural and necessary evolution of the process. For example, ‘call critiquing’ can be
undertaken, where the agent’s calls are recorded in order to better inform staff training. By evaluating these it is much easier to base training around real-life situations, ensuring it is applicable to the particular dealership and the type of inquiries typically being dealt with. It is this kind of holistic perspective that adds value to the most advanced systems. The ability to track an inquiry throughout its lifecycle can help dealers better structure both their marketing and sales strategies. Software which monitors leads of various online and offline sources help agents handle inquiries in a more effective manner, improving productivity and lead conversion rates. With all the recent – and well-justified – emphasis on online lead management, it is easy to forget the value of telephony solutions. Taking a strategic approach to the use of appropriate modern telephony technologies is key, enabling dealers to increase their profitability by getting more from every sales call.
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.
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CarDealerMag.co.uk | 95
auctions.
Buyers choosing carefully, says Shoreham Vehicle Auctions bit.ly/Shorehambuyers
Top-level remarketing takes time to get right Nine out of 10 cars over £20k sell the first time they are offered
auction stations
Used car buyers are focusing on fuel costs
W
D
emand remains strong for upper executive, sports and luxury cars, says auction firm BCA. Buyers are continuing to support the programme of Top Car and Executive sales, with BCA selling 8,356 cars valued in excess of £20k – worth a combined £231.4m – in the first half of this year. Across the board, BCA has averaged 102.57 per cent of CAP Clean for cars sold for £20k or more in 2012. The highest value vehicle sold this year to date – a Bentley Continental GTC W12 Supersports that realised £129,500 – achieved more than 103.5 per cent of CAP Clean. Top Car sales are staged regularly at BCA Blackbushe and Nottingham, with executive car sales taking place throughout the BCA network and 91 per cent of cars valued at £20k and over sell the first time they are offered. BCA’s communications director, Tony Gannon, said: ‘Successfully remarketing luxury prestige and sports cars calls for a different approach from dealing with bread and butter fleet cars. Because of the additional activity required, it is worth
Henstock
consigning cars for sale early to give your remarketing partner time to get the message across. Few can afford upwards of £20,000 on a whim, and with such specialist highvalue vehicles, the pre-sale marketing is critical. ‘BCA uses online and traditional media to attract the right mix of buyers for these prestige car sales – specialised trade buyers and the non-trade – typically small business owners or self-employed professional people, who want their own prestige company car and can benefit from buying in an offset tax position. ‘Demand for high-value cars has remained on a high over the past two years. Despite the difficult economic conditions, the market for high value prestige vehicles is exceptionally buoyant, with buyers prepared to invest six-figure sums for the right vehicle.
Manheim delight at appointment down under MANHEIM has appointed Tim Hudson as the company’s UK operation. CEO of its remarketing and automotive John Bailey, to whom Hudson will services business in Australia. report, said: ‘I am delighted that we Hudson joins Manheim from Aston have been able to secure Tim in this Barclay where he was managing important position. He’s the ideal director for almost two years. His person to lead Manheim’s exciting global experience includes time as developments in Australia.’ managing director for LeasePlan Manheim has nine locations International. Prior to that, he was throughout Australia, New Zealand and Project3 23/4/12 17:03 commercial and operations directorPage for 1 Thailand offering a range of services.
No cowboys. Just Just trade trade professionals. professionals.
hat’s the biggest day-to-day concern for motorists in 2012? According to a BCA poll, the cost of fuel remains top priority for over 60 per cent of respondents. Motorists have been changing their driving behaviour to combat rising motoring costs. The research reveals that 63 per cent of motorists said they have cut back on car usage in the past year due to the cost of fuel, with nearly 45 per cent opting to walk more. Over half share their car usage, usually with a family member. Using more public transport was a popular alternative to save on fuel at 33 per cent. At BCA, we have seen more demand for smaller, fuel-efficient vehicles so values have tended to rise for more economical cars. The manufacturers are pushing the benefits of low-CO2 technology and this is having some impact in the used sector but numbers reaching the remarketing arena remain low. Economy is nearer the top of the want-list for many used car buyers, whatever the make, model, specification or colour might be. From the dealer’s viewpoint, access to a wide range of stock makes this less onerous. In the wholesale sector there has been increased demand for more fuel-efficient vehicles, and there is plenty of competition for smaller hatchbacks and city cars. There has also been an uplift in interest for this type of stock on BCA’s Bid Now, Buy and e-Auction channels, suggesting dealers are increasingly buying to order and like the immediacy and efficiency the online channels afford.
Who is Simon Henstock?
Simon is UK network operations director for BCA. Visit british-car-auctions.co.uk or call 0845 600 6644.
Strictly Trade only (VAT No. and verified bank details reqd). Purpose built 12 acre auction complex . Enclosed and heated auction halls. Fleet Car Sales every Monday & Thursday. Excellent variety of weekly stock from premium sources. Collection of vehicles 24 hours a day. Fixed cost buyer’s premium. Excellent on-site restaurant. Call now for account applications. Brindley Road, Stephenson Industrial Estate, Coalville, Leicestershire LE67 3HG T: 01530 833535 email: info@fleetauctiongroup.com www.fleetauctiongroup.com
CarDealerMag.co.uk | 97
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TRADER TALK
..in association with AutoTrader
Trust the data, not just your judgment Automotive industry is awash with information – much of it lying unused
H
igh street supermarkets do it, Amazon does it, the travel industry does it, but car dealers don’t seem to want to do it. Using dynamic market intelligence to support decisions is second nature for most successful retailers. They all invest time and money in making sure they know what consumers want, when they want it and how much they are willing to pay for it. This is an essential and well-proven ingredient in any successful retail business. The automotive industry is awash with data yet it is surprising how little of it is used. It seems that old habits die hard and data is seen by many as a threat to their tried and trusted instinct, experience and judgment. Dealers should use this instinct, experience and judgment to complement the data and not to try to second-guess it. We do know that dealers who use market intelligence products to support their decisions are more profitable. A recent survey of more than 6,000 dealerships with more than 20 used cars in stock found that 54 per cent of their stock has low current regional demand and only 40 per cent of their vehicles are priced to deliver a strong internet response and a good margin – the
‘Intelligent use of data should underpin the business on a daily basis.’ remainder are either priced too high or too low. Intelligence on market trends, pricing and local demand when buying, selling and retailing stock is invaluable but also readily available. Understanding which are the most soughtafter makes and models and what price should be paid for them will help a dealer stock the right product and buy it at the right price. Furthermore, having an effective pricing strategy once cars are on the forecourt to maximise stock turn will have a significant effect on overall profitability – the objective of any successful used car retail operation. The average UK stock turn is five to six times per year, but there are used car operations achieving significantly better who clearly benefit from the increased opportunities in F&I,
servicing, repeat business and return on capital invested. Analysing the available market data and making intelligent use of this to influence pricing and purchase decisions will not only provide a competitive advantage, it will also set the benchmark for other dealers in the area. But the intelligent use of data isn’t just an occasional activity – it should underpin the business on a daily basis. Those dealers who start to act like retailers in their attitude towards data will be the winners of the future, managing to evolve from traditional dealers to become internet car retailers. Those that don’t will continue to struggle as consumers’ power continues to increase given the on-going transparency created by online.
Who is Tim Peake?
Tim is group strategy director at Trader Media Group,‚ publishers of Auto Trader, the UK s largest car marketplace. Visit autotrader.co.uk
YOU. ARE. NOT. A. RO. BOT
Manage your pricing quickly and easily It’s not always easy to know what to pay or charge for stock. And with so many sources to consult, it can be difficult to stay on top of prices. Our Intelligence Packages are run by clever robots that quickly provide you all the answers you need to know. Including Profit Indicator and Market Tracker, you can check what’s profitable before you buy and stay competitively priced before you sell. So, why not give the Ro. Bots. A. Try. To find out more about our Intelligence Packages, just call us on 08433 088 875 or visit www.dealerportal.co.uk CarDealerMag.co.uk | 99
47% of Ferrari dealers subscribe to Run by dealers for dealers Est 1999
SHOULDN’T YOU?
NET GAINS.
..in association with Codeweavers
Tweak your online efforts Your new finance offers can drive improvements in penetration
H
ave you ever bought a new gadget and felt let down by the results? I bought a rather expensive digital SLR camera and the initial results were poorer than I expected. I could at this stage have sent the camera back to the (online) shop I bought it from, complaining that this expensive bit of kit didn’t work. However, I know that many people can make this camera produce stunning photos – that’s why I bought it. I saw their results and wanted to join their club. So I practised, tested, read-up and generally experimented and the results gradually improved. Sure, I will never be a David Bailey, but through experimentation and gradual improvement the tool I had purchased demonstrated that it was more than capable of doing the job. Finance calculators on the web are no different. Shiny and new on your site, you will have high expectations of the results. However, much like my adventures with the camera, quality results are by no means guaranteed out of the box. Like all other offers on the web, the effectiveness of your finance offer is significantly linked to the quality of presentation and visibility of that offer. You may well have the strongest finance on the web but if it’s hidden away eight clicks from the home page, deep on the site, then few people will find and interact with it. When your customers eventually find the calculators,
‘If it’s eight clicks from the home page few people will interact with it.’ if it is not obvious how to use them or if the information is unclear or poorly presented, you will again alienate them and prevent interaction. Use best practice to present the finance offer. Test the layout on real customers and use their feedback. Increase the visibility and accessibility of your finance offers by providing explanatory content and even product videos. Check your offer. Try out different rates to find the best compromise between lower rates which will lead to more enquiries and higher rates which will potentially result in fewer. Selectively display your products putting your best foot forward. Perhaps show PCP if available, if not show lease purchase and fall back to hire purchase. Only showing one product at a time may make the information clearer to your customers and encourage interaction. You could
also experiment with the default offer (the offer your customers see before they adjust any figures). When making changes try adjusting a single factor at a time. Monitor the results for long enough to get data. If you have a busy site, a change over the weekend may well provide enough time. If, however, your site attracts fewer visitors it may take a little longer before the effects of any changes can be accurately measured. Remember that what works today may not work tomorrow, so I suggest continually tweaking your offers. With effort, practice and experimentation your gleaming new finance offers can drive real improvements in finance penetration and significantly increase vehicle enquiries. Remember, it’s not what you’ve got but what you do with it!
Who is Roland Schaack?
Roland is managing director at Codeweavers. Learn more about how he can help you at Codeweavers.net or call 0800 021 0888.
DO YOU WANT TO DOUBLE YOUR ONLINE VEHICLE ENQUIRIES?
0800 021 0888 www.codeweavers.net contactus@codeweavers.net
CarDealerMag.co.uk | 101
data file.
Batchelor
BACKFIRED
Porsche show why you must try before you buy
M
rs. Ingamells must have hated me. There she was, a fully-qualified violin teacher, who was just doing what she was paid to do by my parents. But I never turned up to my lessons with my £400 violin. That supercilious face topped with a bouffant quiff thought he knew how to play said instrument, and deemed it a waste of his time to turn up to a lesson hosted by a woman who always wore bottlegreen skirts. Fast forward 10 years and that same supercilious face is all hot and sweaty as a nice man called Mark is teaching me how to power slide the brand new Porsche 911 Carrera S. With the PSM (Porsche Stability Management) completely turned off. ‘Right, when I say SPIKE, floor the throttle,’ said Mark. ‘Turn in to the apex… that’s it… and SPIKE. SPIKE. James, SPIKE it. SPIIKKEEE’ Two seconds later I’m in a cloud of tyre smoke, and have somehow ended up on the grass facing a marshal eating a Scotch egg. I’m the perfect example of someone who thinks they know what they are doing, but in actual fact has absolutely zero competence. I was lucky enough to spend one sunny Saturday afternoon at the Porsche Experience Centre at Silverstone last month, mastering some better driving techniques and how to spin… I mean drive at the limit… the new 911. Here Porsche hosts a wide range of experience and tutorial days. I was there to try the Youdrive@Porsche programme which, with a combination of my own car and the 911, aimed to make me a better driver. There was the aforementioned 911 masterclass, and tutorials on the centre’s Ice Hill and Kick Plate. Every customer who places a deposit on a new Porsche at a dealer is offered a half-day at Silverstone to test the car they have purchased. I cannot recommend trying before buying more highly enough. Think about it. If dealers – whether Porsche or not – are selling a high-performance product, they should be doing their utmost to persuade the customer to try it out in a safe environment. Doing this may avoid the customer selling the car a short time later, or, worse, crashing their beloved motor. I’m so taken with this bout of good sense, I’m employing it in my everyday life. Anyone want a violin?
‘I’m in a cloud of tyre smoke and have ended up on the grass.’
Who is James Batchelor?
Award-winning Car Dealer writer James is one of the fastest-rising new talents in motoring journalism. Read him here every month. 102 | CarDealerMag.co.uk
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FOR too long, Vauxhall has been absent from the larger MPV market, but the firm now aims to put that right. The seven-seat Tourer will be going up against rivals such as the Ford S-Max and the Volkswagen Sharan, while sitting alongside the smaller Zafira. Two petrol engines and three diesels are available and there are five models. Vauxhall predicts the best-seller will be the 128bhp 2.0-litre diesel version. The car has notable levels of front-end grip and minimal body roll but parking can be tricky due to its size. We liked
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the car and were impressed with the quality of its interior. Our only quibble was that it seems a little pricey. Price: £25,065, tested in Issue 48.
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This car’s predecessor was a budget B-segment offering that traded largely on value and very little else. Value is just one part of this all-new Aveo though, as are butch looks, sharper handling and good equipment levels. The styling scores top marks with us, with just the wheezy engines and a few cheap plastics spoiling what is generally a car that finally gives the Hyuindai i20 a run for its money.
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Netcars.com
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Price: From £10,995, tested in Issue 48.
Finance
Warranties
Finance
Auctions
These listings work!
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Moneybarn
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W: your website address T: 023 9252 2434 (that’s us!) E: adverts@cardealermag.co.uk Info: The Suppliers’ Guide helps dealers find the companies they need to help them improve their business. Make sure you’re here!
Prices for 12-month listings: £29 per month. Single months are £49 per month
Prices exclude VAT. Adverts are invoiced after it has been included in the magazine. 12-month bookings are payable up front.
CarDealerMag.co.uk | 103
data file.
James Litton TRADER TALES
Pre-registration, a matter of survival for most . . .
F
or me, pre-registration is a matter of survival for the majority of manufacturers and greed for the minority. I have sympathy with those car makers who are desperate to retain any form of market share, yet still trying to deliver profitability to their dealer network. Many mainstream manufacturers have been struggling in the face of product onslaught from the premium sector and improved quality from the cheaper segments. There are wider economic implications for failure to hit target that go way beyond whether a retailer gets paid their extra percentage of volume bonus. The year 2008 was catastrophic for most car manufacturers and now many are beholden to their respective Governments following unprecedented bail-outs. French car makers are desperate to reduce and streamline the scale of manufacturing but the required job losses do not meet the political agenda of the new socialist president. The impact on many smaller firms across Europe would also be fatal. From a retailer respective, margin pressure is so significant that the only way to deliver any form of acceptable financial performance is to release the monies attached to achievement of target. These are issues which affect the very existence of some manufacturers but the remedy for them is simple. Design cars which have a volume niche. Ten years ago, only the bravest soul would have bought or opened a Fiat franchise yet with the launch of just one product, the 500, their fortunes changed for the better. Similarly Kia have brought a number of excellent cars to the UK. For the minority, and we all know who they are, preregistration is a battle for ego. The products are desired the world over, these factories cannot produce enough cars to meet worldwide demand, yet in the UK, these manufacturers are forcing the registration issue in the same way that their cars might fight it out for first place in a touring car race. This has affected the way that their retail networks have traded in the last few years. My key phrase for this change is ‘more for the same’. Individual dealers are working harder, with more investment for the same kind of financial returns as they were getting in the mid-nineties. You have to question the logic of this in the long term. In my next article I will explore the reasons…
‘Kia have brought a number of excellent cars to the UK.’
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
Bryan McMorran bryan@hwm.co.uk 01932 240611 07767 660285
www.hwm.co.uk
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. 104 | 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
Jon O’Donoghue 0208 420 5100 07976 177 959
Lee Gilmour 01923 263700 07768 367085
Richard Walker 07748 177889
Mark Littler/Tim Barnes 0161 767 9500 07920 599 394 07787 921 222
Andy / Neil 01925 570800 07891 531129 07825 311 297
Brayley Honda Kevin Adams 07900 986095 kevin@brayleys.co.uk
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: Volvo V60 Drive
Lotus
Maserati
Beadles Land Rover
Car dealer says HHHHH
Murray Motor Company
Meridien Modena
Greg Wilcox g.wilcox@beadles-landrover. co.uk 07740 717209
WE like the looks and the specification and we think customers will be very happy with it.
Brandon Ware 0131 200 8888 0750 326 0186
Warren Butt 02380 283404 07860 530703
Price: £24,920, Issue 47.
Maserati
Mazda
Mini
Mazda
Nissan
HR Owen
Lifestyle Mazda
Vines Group
Brayley Mazda
Nissan
Toyota
Volvo
General
Hyundai
Kia
Currie Motors Toyota
Sturgess Volvo
Barry Freedman
Sturgess Hyundai
Brayley Kia
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
Kevin Adams 07900 986095 kevin@brayleys.co.uk
Perry Beaver perrybeaver@sturgess cars.co.uk 0116 2541717
Sturgess Nissan Perry Beaver 0116 254 1717 perrybeaver@sturgesscars.co.uk
Kevin Adams 07900 986095 kevin@brayleys.co.uk
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 | 105
the fleet.
iMiEV: Second report Dave Brown takes a turn with Mitsubishi’s electric city car... and actually rather likes it.
T
he look on my 18-year-old daughter’s face was one of barely-concealed contempt. ‘If you think I’m arriving at the party in an electric car being driven by my dad...’ Her voiced trailed away in disgust before she could finish her sentence. Tempted though I was to tell her she could walk, I collected the keys to our mighty Mazda 6 and took her in that instead. A typically ungrateful teenager? Of course, but my youngest’s reaction did highlight an important point for the makers of electric cars and it’s something they all need to work on. The problem is, electric cars aren’t cool. My family and I went to see the comedian Alan Carr a few months ago and a central theme of his stand-up routine was that he had been invited to be the face of electric motoring but had declined. There was no shortage of jokes to ridicule EVs and all who choose them as their preferred mode of transport as he warmed to his theme. And the problem with the iMiEV is that its design actually does give it the proportions of a buggy for disabled or elderly people. This is because it’s rather tall, and rather narrow. Not helpful in any kind of bid for street cred. Having said that, I’ve never been one to worry about my image too much (shut up, Batch). And I have genuinely loved driving the iMiEV. If you can put its slightly questionable design to one 106 | CarDealerMag.co.uk
side, it is just perfect for city driving, with its compact wheelbase and rear view camera making it extremely easy to park and a turning circle that means you can do a U-turn almost anywhere. But as anyone with any experience of electric cars will appreciate, it’s all about the range. And as with other electric cars I have driven, I found myself playing a game to try and maximise the number of miles available at any given time, by driving gently and slowly, not overdoing the use of the air-con and so on. After charging it up, the highest number of miles I’ve ever had available is 86... but that soon dropped if I drove at all aggressively or fired up said air-con. One major plus point is a surprisingly roomy boot. This came in very handy when I went on a sailing trip with my pal, nautical Nige. There was plenty of room for our maritime paraphernalia such as sails, oars and so on. Nigel’s an aviation engineer and was fascinated to learn a bit more about the car. I was impressing him no end until I mentioned the price. Incidentally, he forgot the anchor, which was probably just as well – the extra weight might have affected the range! I was interested to see a Nissan Leaf in the sailing club car park when we arrived there... and one that looked as though it was being put through its paces too. In conclusion, apart from the slight image problem that electric cars seem to be stuck with at the moment, I’m always reminded of the Wonga sliders when I drive one (you know, the payday loan people). For EVs to really take off, the range needs to go up and the price needs to come down. That really would be cool.
second opinion
No really, it’s a Lotus POOR old iMiEV. The little Mitsubishi – or the ‘mobility carriage’ as my ‘really witty’ neighbour has called it – only lasted five days at the Batchelor household before it was passed onto Dave. Why? Well, I have the longest commute to Car Dealer and one which involves fast flowing country lanes, and a handful of steep hills. The iMiEV just isn’t suitable for this and the stress involved in driving at 18mph the whole time has got just too much. I’ve totally convinced myself it looks like a Lotus (it’s black with gold stripes, you know), but I’m not a fan of the leather dashboard that is beginning to lift and peel away, and the sat-nav that has the smallest buttons in the world. Just like a Lotus then. JAMES BATCHELOR
the knowledge Model: Mitsubishi iMiEV Price: £23,990 (with £5k govt grant) Engine: Electric Power: 66bhp, 180Nm Max speed: 81mph 0-60mph: 15.9s Range: 93 miles Emissions: 0g/km Mileage this month: 164 Costs this month: £0
This month’s highlight: Packing a whole load of sailing gear into its surprisingly capacious boot.
longtermers
Kia Rio: Fifth report S
ince Dave has been more than happy driving the Lotus... I mean iMiEV... the job of racking the mileage on our Rio has fallen to me. First up was a jaunt to Heathrow to catch my flight to Munich to drive Chevy Cruze SW. And then, later that week, I returned to exactly the same car parking space to hop on a plane to lovely Manchester for the Volvo V40 launch. And I can happily report the Rio is a delight in airport car parks. In all seriousness, though, it was on the way to Heathrow when a slight incident occured with the Rio. I was on the M25, and in glancing down at the speedo to check my instantaneous fuel consumption, I noticed a message saying: ‘Check tyre’. It then disappeared as quickly as it had appeared. Well, you can imagine what happened. I screamed, tensed up, and the quiff wilted due to excess perspiration erupting on my forehead. But there was no vibration or anything to suggest I had a puncture. Even a bit of wiggling and swerving gave no hint. Stopping, I consulted the manual. But I didn’t understand it. A quick call to our local Kia dealer, Fine Cars,
second opinion ANOTHER month and another trip to London in our trusty Rio. I struggle to fault this little car and it wasn’t until I spotted an exact same model – three door, in red – on the other side of the road that I realised just how good it looks on the road. It’s a stunning looking car and makes the previous gen an embarrassment! JAMES BAGGOTT revealed all was okay. It was just a message to notify me he tyres need rotating at the Rio’s 10,000-mile service. Why do I need to know that now? In 2,000 miles’ time, I ask you? And the auto stop/start light – normally of a delightful green hue – is starting to flash amber intermittently. It’s not a major problem, by any means, but a rather strange one. These are minor gripes on what has been a faultless car since its arrival some time ago. It’s still impressing us, and is regularly returning impressive fuel economy figures in excess of 50mpg. Not quite the claimed 70.6 but... I’m moaning. Again. JAMES BATCHELOR
the knowledge Model: Kia Rio 1.4 CRDI ‘3’ Eco Price: £14,295 Engine: 1.4-litre, 3cyl Power: 89bhp, 90Nm Max speed: 107mph 0-60mph: 13.7s MPG (comb’d): 70.6 Emissions: 105g/km Total mileage: 8,737 Costs this month: £0
This month’s highlight: The absolute joy at knowing the Rio did not have a puncture. Little things...
Skoda Yeti: Fourth report J
uly is holiday month in the Collins household and this year despite the exceptionally wet summer weather, we decided to spend a week in Somerset. So, the Car Dealer long-term Yeti was pressed into service as transport for our trip. Firstly, I was impressed by how the practicallyshaped 405-litre boot swallowed all of our luggage without compromising the Yeti’s interior space. Then, there’s the Skoda’s excellent cruising ability which gobbled the 150-mile trip with ease. When the roads got twisty, this small SUV entertained and we got to our destination in a surprisingly relaxed state even after the best efforts of the M25 and M4. The weather wasn’t going to stop us, so we kept busy with days out. The first trip, was to Lord Bath’s residence – Longleat. The Yeti mixed it with the best of the animals on the safari, not once but twice. Although after last month’s trim incident we didn’t brave the monkey enclosure. The Yeti’s big rear windows and tall seating position were appreciated by our toddler, as he got a great view of the lions and tigers. The rain got heavier throughout the day and we ended up having our picnic in the Skoda’s interior, which proved to be warm and dry.
second opinion YET another month and yet another story of how fantastic the Yeti is. In fact, it’s starting to get a little embarrassing spouting out the same old words about this super Skoda. One thing though that’s new: I’m starting to like the red paint. Even if it does clash with the Greenline logo. JAMES BATCHELOR Later in the week, again the Columbus sat-nav earnt its keep by getting us to Sparkford, to fuel my inner petrol head at the Haynes Motor Museum. It was nice to get close to super cars such as the Jaguar XJ220, but it only has two-seats and couldn’t have got down some of the tracks that the Yeti took in its stride. Sadly despite trying, we still aren’t getting any closer to the combined fuel figure of 61.4mpg. In fact, the mpg is down this month. Still, I thought the 523-mile range and 47.5mpg fuel figure wasn’t too bad considering the changeable driving conditions during the week. Perhaps in protest, the replacement roof cap has fallen off again! Skoda have promised a fix, find out more next month. MARTYN COLLINS
the knowledge Model: Skoda Yeti Elegance GreenLine II Price: £22,670 Engine: 1.6-litre, 4cyl Power: 103bhp, 250Nm Max speed: 109mph 0-60mph: 12.1s MPG (comb’d): 61.4 Emissions: 119g/km Total mileage: 3,150 Costs this month: £0
This month’s highlight: Even when parked outside a stately home, the Yeti still looks classy.
CarDealerMag.co.uk | 107
workshops.
Thousandth apprentice for Honda Teenager will start his three year training programme soon
H
onda UK is celebrating its one thousandth apprentice to start its acclaimed apprenticeship programme in its 11-year history. Andrew Chambers, 17, who works for Yeomans Honda in Littlehampton, will start his training at the Honda Institute – Honda’s bespoke training facility near Slough – this summer. It will take him three years to complete the Honda Apprentice Programme (Car), during which time he will be employed by Yeomans Honda and attend block training at the Institute. To celebrate this milestone, Yeomans Honda hosted a special ceremony at which Honda UK managing director, Dave Hodgetts, presented
Chambers with a gift of a Blue Point mechanics starter tool kit. ‘I am thrilled to have the opportunity to be a Honda apprentice and can’t wait to get my hands dirty. I’m over the moon with the tool kit – I will certainly make good use of it in the years to come,’ said Chambers. Honda UK’s Apprenticeship Programme was recently awarded an ‘outstanding’ grading from Ofsted and scored an impressive 91 per cent for its completion rates (14.4 per cent above the national average), and 90 per cent for its ‘timely success’ score
by the Skills Funding Agency SFA. Dave Hodgetts, Honda UK’s managing director, said: ‘Over the past 11 years we have seen this programme consistently deliver the best-prepared apprentices of any industry in the UK. ‘To get to the 1000th apprenticeship start is a significant achievement and with graduates from the Honda Apprentice Programme making up 25 per cent of Honda UK’s car and motorcycle technicians the programme is critical to our success in delivering the best customer experience.’
ÜÜÜ° °V 108 | CarDealerMag.co.uk
Want to be included in our new section? Call (023) 9252 2434
New offer ‘to remove uncertainty’ Saab Service Club offers a host of exclusive benefits
S
aab Parts UK’s authorised service centres are offering all Saab owners a complimentary MoT in conjunction with an oil or annual service. When booked in August or September, Saab owners can take advantage of improved customer value fixed-price services from £129 and qualify for a complimentary MoT. All owners need to do is register on-line with Saab Service Club. Free to all Saab owners, Saab Service Club is a loyalty scheme that provides a host of exclusive benefits, including free visual health checks, discounts on parts, servicing and Saab accessories. All Saab fixed-price services are carried out by factory-trained technicians, who have the experience
and expertise to maintain customers’ cars in the best mechanical condition, and use Saab genuine parts that are covered by a two-year parts and labour warranty. David Leighton, business development manager at Saab Parts UK, said: ‘At Saab we are continually looking at ways to provide Saab customers with improved value services. ‘With an extensive national network of 89 authorised service centres, we want to ensure that Saab owners can keep their Saabs in perfect running order with the best quality and value maintenance packages developed through the Saab Service Club.’ SAAB Parts UK has also said it has launched a new national broker service for the pricing and placement
of used Saab vehicles. The service was launched on August 1, and the unique brokerage facility for Saab trade enquiries is administered by a dedicated and highly experienced Saab used car expert based at Saab Parts UK’s HQ in Cranfield. The service will work directly with selling dealers (trade) to ensure they get the best and true valuation of the Saab they are part exchanging, and matching the car to a buyer offering the highest price from the national network of 88 Saab Authorised Repairers. Corin Richards, managing director of Saab Parts UK, said: ‘This new service we are offering will remove any uncertainty that may remain in the Saab used car market.’
20% fuel savings
Time is money. Save both with our new compact hot water pressure washer The new, compact HDS 6/12 C is packed with innovations to make cleaning faster and cheaper, without compromising results. With its eco!efficiency mode, the 6/12 reduces diesel consumption by 20%, making the cleaning power of hot water even more affordable, whilst its highly ergonomic chassis design puts the simple, intuitive controls at your fingertips. And with tough, proven components throughout, and the peace of mind of a three-year burner coil warranty, the 6/12 sets a new benchmark for compact hot water pressure washers. For further information on how the new HDS Compact range can make a difference to your business visit www.hdscompact.co.uk, call 01295 752 142, email hdscompact@karcher.co.uk or scan the QR code.
www.karcher.co.uk
CarDealerMag.co.uk | 109
SHARES.
..in association with ASE-global.com
Fascinating half-year figures
Optimism for Inchcape; Lookers busy on the acquisition trail
W
e are now firmly into half-year results announcements for the listed motor retail businesses and they provide interesting reading. During the first six months of 2012 Pendragon have reported significant revenue growth of eight per cent over the prior year. However, margins dropped such that profit before tax was slightly ahead of the comparative result for 2011. The results also provided news of a drop in underlying operating profit, which is clearly an issue. The turnover growth was driven largely by an increase in low margin fleet business and it was interesting to note that Pendragon’s Quicks used car division increased its losses. Given the current market conditions, where used cars are
providing the salvation for many businesses, this is concerning. The results appeared broadly in line with market expectations with initial share price movements being only slightly downward with the share maintaining most of the gains banked during July and the start of August. Pendragon has also, somewhat embarrassingly, had to restate its accounts for 2011. Whilst the adjustment only affects the cashflow statement presentation, it is not a desirable action to have to take. Inchcape have also released their half-year results. Whilst reporting smaller revenue growth than Pendragon, the improvement in underlying operating profit was much more impressive at 10 per cent growth over 2011. These results have helped bolster the recovery in the Inchcape share price, which has now gained nearly 20 per cent from the halfyear position. The company is reporting good results in both the UK and overseas and shows significant grounds for optimism.
Lookers has been busy on the acquisition trail, purchasing Lomond Motors, the Audi retailer in Glasgow and Edinburgh. Whilst the price paid suggests they have paid very significant goodwill, the share price surged in advance of the announcement and has settled down since. Vertu shares jumped at the start of August reversing recent losses. The business has announced a number of acquisitions in the last month and its broker has re-iterated a target price of nearly double the current market price. Caffyns has moved in the opposite direction, disposing of a Volvo dealership and a small property with the resulting cash being used to pay down borrowings. HR Owen dropped significantly at the start of July. However, the share price movement appears to have settled down after the losses of recent months. Cambria is another share which looks to have found its level and has started to show small gains.
Who is Mike Jones? He‘s executive chairman of ASE Global. If you want to talk to him about his column call 0161 493 1930
A big thank you to all of our customers who voted for us to become the proud winners of the Car Dealer Power Award for Training in 2012 BUSINESS TRAINING
BUSINESS CONSULTANCY
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BUSINESS OUTSOURCING Off Head-Count Learning Centre Management Sales Team
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For more information call us 01280 828100 or visit fourmative.com 110 | CarDealerMag.co.uk
The gold standard The JGA Gold Standard is the envy of automotive recruitment; it’s the catalyst which has kept us at the forefront and ahead of our competition.
We believe in delivering the vital difference between mediocrity and excellence. And to prove our on-going commitment to delivering a standard of service our clients and candidates deserve, we’ve been voted Automotive Recruiter of the Year for 2012 by those that matter – professionals in the Motor Industry. Thank you! Whether you’re seeking to recruit outstanding talent or your next career step, contact John Gibson Associates today on 0845 644 3003; speak to one of our Automotive Professional Consultants and see how we can help drive your ambitions forward.
Web: www.jgauk.com
Tel: 0845 644 3003
THE LOCAL, REGIONAL, NATIONAL AUTOMOTIVE RECRUITERS
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Only need apply! Marshall Motor Group is part of a unique family owned group of companies with a turnover approaching £1bn (35% growth), with interests also in the aerospace and ground systems sectors. We celebrated our Centenary in 2009 and we are still growing in size. At Marshall, wherever we work, we all play a big part in ensuring that our sales and profit targets are met, not least by providing our customers with a fantastic level of service which means identifying their needs, and responding to them quickly.
marshallweb.co.uk
With our strong customer centric and people focus it is not surprising that we have received some enviable accolades including "Dealer Group of the Year" and being shortlisted for "Employer of the Year" and we are committed to building on our achievements to date. We are looking for talented automotive professionals to join our team. If this is you and you share our passion for being the best then you can look forward to a great benefits package, the chance to build on your skills and experience with ongoing training, plus all the encouragement and support you need to develop a rewarding, long-term career with us. Please go to
www.marshallcareers.co.uk
to find out more about the Group and see our current vacancies.
WE’RE RECRUITING... PETER VARDY IS NOW RECRUITING IN MANY AREAS FOR ALL OF OUR DEALERSHIPS. We’re looking for people with drive, passion and retail sales or customer experience. You don’t need a motor industry background, just the desire to succeed. We’ll give you all the world class training you need... plus a great financial package, and every Sunday off. If you want the chance to build a career with Scotland fastest growing motor retail group then apply today.
We are recruiting for the following roles...
t 4"-&4 "%7*403 t 4&37*$& "%7*403 t 5&$)/*$*"/ t 4"-&4 $0/530--&3 For more information call 0141 773 5300 or visit www.petervardy.com/recruitment
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THE GREAT SALES EVENTS! At Pete Roberts Development Ltd. we have helped many dealerships to achieve unprecedented sales results within just 4 days, and you can do the same. We assist you in all planning and preparing for success, and provide bespoke Events to meet the requirements of your business which appeal to both your existing customers and new prospects alike. We specialise in attracting new conquest business customers to your centre and do not just rely on your current database to achieve results.
Full Event marketing and process support with solutions to cover: ~ ~ ~ ~ ~ ~ ~ ~
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All Events are tailored to your requirements and are extremely cost effective.
Pete Roberts Development Ltd. Home of the Great Event
Over 35 years Motor Trade Sales Experience
For more information visit www.peterobertsdevelopment.co.uk Or call Pete Roberts on 07791 600006
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Find out how we can help Call Pippa on (023) 9252 2434
data fiLe.
Treat your customers as individuals if you want their business W
e had just parked the car following our fun-packed day of dealer visits and made the short journey from the garage to the house. Upon walking through the door from the hallway to the kitchen we were met with my business development manager’s son, who was standing at the breakfast bar rolling a cigarette. Being a 21-year-old student, and having risen from his bed an hour or so before (the time being 5pm!) he was just about to head into town with one of his friends. Following a brief conversation with this young gentleman it became very apparent that he possessed some striking qualities. He was completely different to both of us and demonstrated a totally different level of thinking. Imaginative, creative and artistic are all words which could be used to describe this particular individual, who continued to roll away in his own unique manner. In contrast, structured, results-driven, competitive and challenging are words which could best be used to describe myself and his father, the business development manager. We continued to drink our coffee, looking on bemused as we tried to work out the differences between this person and ourselves. Of course, there are other personality types too. Some individuals have a real eye for detail and evaluate and reflect on matters before coming to a decision in a true logical sense. And lastly, there are those who are very interpersonal, emotional and all round agreeable people who are social animals with a genuine dislike for staying at home on their own! The truth is we meet and communicate with people
Jonathan
Such TIME IS MONEY
either face-to-face, or over the telephone, who are different to us every day of the week. How effective we are when communicating with people who are different to us is the key question, and in particular how tailored our sales tools and presentations are in this particular area. Suppose we look in a bit more detail at the personality type who has a real eye for detail, and specifically, what this type of buyer needs when making a decision. When viewing a website and looking at a particular car they will want to know every piece of technical specification, and have a mass of images to view, which need to have been taken in a systematic way, while
‘There are those who are very interpersonal, emotional and all-round agreeable people...’ comparing the price of the vehicle to a well-known valuation guide. Your car will need to be extremely competitively priced to attract their interest. That, unfortunately, is even before they walk onto your forecourt, when the real need and desire for information and detail will prevail. Unless as an organisation you are able to supply this type of buyer with what they need, I suspect the chances of making the sale will diminish somewhat. Ensuring your value proposition meets your customers’ thinking type may sound like nonsense to a hard-nosed salesperson, but more and more people like and expect to be treated as individuals and this includes understanding how and when they want to buy.
Who is Jonathan Such? Jonathan is regional sales manager for First Response Finance. You can contact him on 07917 781608 or email jons@frfl.co.uk
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