Car Dealer Magazine: Issue 6 by Blackball Media

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Issue Six September 2008 www.cardealermagazine.co.uk

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Audi

Green issue

How to make your dealership eco-friendly Plus! Green tips and tests

Introducing Big Mike

Car Dealer’s new secret man in the trade spills the beans

THE STARS OF THE BRITISH MOTOR SHOW Focus RS ■ Lotus Evora ■ Vauxhall Insignia ■ Flying Spur Speed

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start Issue six | September 2008

f you’re anything like me, chances are you’re getting pretty sick of ‘green’. Don’t get me wrong, I have what some describe as an unhealthy obsession with recycling. Before you ask, I haven’t got ‘a thing’ for green bins, but I am rather unhappy if I find a piece of paper in with the leftovers. But my real problem is this – I just seem to find green a little bit dull. Give me a 500bhp, twin turbo, oil-rig emptying supercar any day of the week over a 1.0-litre, 70mpg snore-mobile. I know we should all be doing our bit to save the world, but can’t I leave it to someone else? Apparently not. Despite my slight annoyance at the green issue, I know it’s playing a huge part in your business right now. I was chatting to one dealer recently who told me sales of anything that even look like they might be a bit juicy

had simply dried up – ‘everyone wants more mpg,’ he told me. And if you stepped inside the Excel centre for the British Motor Show (p6) you couldn’t fail to notice that pretty much every new car had some tinge of green running through its fuel pipes – even if it was a rather ironic shade of pea on the Focus RS below. Thing is, when you’re selling these treefriendly models, you can’t do so from a showroom that burns more power than the Blackpool Illuminations. So, this month we’ve looked at how you can make your dealership more eco-friendly. Just think of the marketing benefits of selling green cars from an eco-site – with the right image you might even end up selling cars to Greenpeace. Ok, so that might be pushing it, but check out the feature on page 43 anyway. The Nice Guys – if you’re looking for a franchise from a manufacturer that won’t dictate the colour of your tie then take a closer

look at Proton. The car maker is looking to heavily expand its dealer network and wants you to get involved – and all for an initial investment of just £8,000. Sound good? Find out more on page 38. And finally, this month we welcome a new columnist to our ranks – Big Mike. Every month, The Stig-like figure (we’ve agreed to keep his identity secret, not let him loose on the test cars) will take a light-hearted look at the auto industry. In these depressing credit crunch times, his first column (p21) certainly made me chuckle. I hope you enjoy it too. Happy selling…

James Baggott, editor

‘The stunning Focus RS will have 300bhp, a limited slip diff and styling harder than Vinnie Jones. We can’t wait to try it out.’ British Motor Show review, p6

CarDealer

WOW!

NEW SITE LAUNCHED!

w w w.mo t o rt r ade-mail. com

COMMERCIALS, CARAVANS, MOTORHOMES, MOTOR BIKES AND CARS

ALL ON 1 SITE. SEE PAGE 17 FOR FULL DETAILS

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ignition Issue six | September 2008

21 38

33 dashboard 06

British motor show

All the news for dealers from Excel

ultimate scirocco

Why VW believes UK market’s tops

you’ve got mail

WINNERS in the CRUNCH

BIG MIKE

CAR DEALER EWARDS

Motortrade-mail launches new site Budget makers see sales rocket

Our new mystery dealer columnist Find out who’s entered for a gong

forecourt 24 29 30 32 33

Audi Q5 seat ecomotive VW passat cc corsa vxr ‘888’ Cult Cars: Conti GT

features

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‘After years of BMW’s X3 soaking up all the sales in a sector it invented, finally Audi is here with a premium compact SUV. But is now really the right time? Audi certainly thinks so.

Proton dealer hunt

Gr££N DEALERS

Tried & tested

DOT COM

Auctions

55 56 59 60 63

Products Recruitment section WIN! A Gerber multitool on the spot Trading places

Why you’ll want to sell Protons Make your site more eco-friendly That was a good idea column The rise in green internet searches NEW: The latest remarketing news

An unexpected bonus for our BEN fund

Used Cars

05 31/7/08 19:10:10

british motor show concept points to a green s2000

IS the next S2000 going green? Honda’s OSM concept – Open Study Module – is a pretty two-seat roadster that caught many people’s eye on the stand. The Japanese maker was sketchy about what was actually powering it, revealing only that it is ‘low emissions and only a design study’… but we wouldn’t be surprised if elements of the look made production soon.

Dealers tell Bentley buyers want more

BENTLEY sales are on target despite the credit crunch, UK regional director Richard Gordon told us – and it’s thanks to the maker’s close relationship with its dealers that this is so. This is what’s led to enhancements for the 2009 Continental Flying Spur, which gets a Speed edition, too. ‘Customers told dealers they wanted even more luxury. Who then told us,’ he said.

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richard aucock reports from the British motor show where vauxhall’s insignia stole the show VAUXHALL stole the show in more ways than one. The headliner, of course, was the new Insignia. Here was a true UK debut: never before had anyone been able to get up close with it. This was a real coup for the show, and proof of how important Vauxhall feels the UK is – after all, as GM Europe boss Carl-Peter Forster told Car Dealer, nearly half of all Vectras built are sold here and we take a quarter of all the cars GM Europe produce. For three out of the first six months of 2008, Vauxhall has been UK number one. The Insignia looks the business, with curvaceous lines and a super-quality interior. Most models will be frontdrivers, but four-wheel-drive is also available, while trim lines include S, Exclusiv, SE, Elite and SRi variants. It will cost from £15,935 when it goes on sale in December, with engines all meeting Euro V emissions standards.

There will be three versions of a new 48mpg 2.0-litre diesel, including a 160bhp ‘Eco’ version. That’s not the only way GM is considering the environment, though. A visit from PM Gordon Brown on Press day of the show raised the possibility of the Chevrolet Volt plug-in electric hybrid being built here. This stole all the headlines in the newspapers the next day. Ellesmere Port is in the running, it seems, if the Government introduces

the right environmental initiatives. And there was plenty of incentive for them to do so at the show. Every maker had an ‘eco’ car of some description – from electric cars, to hybrids, to hydrogen-fuelled concepts. The cars heading to your showrooms are going green, that’s for sure. Indeed, we don’t think there was a single press conference where the environment wasn’t mentioned. That’s how important the industry is taking the issue.

Evora challenges Cayman IT’S E for… Evora at Lotus. That’s what the maker’s Cayman-challenger will be called, when it goes on sale from circa £45k in spring next year. The 2+2 packs a 3.5-litre Toyota-sourced V6 that does 170mph and 0-60mph in under five seconds. It’s light weight means the 300bhp motor will still do 30mpg too. That’s despite luxuries such as lavish interior trim and all the latest gadgets. Lotus reckons it will be the most

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comfortable cabin it’s ever created. But what about the styling? Well, there’s no denying it’s a Lotus, with the lithe lines showing clear links to the Elise. We like the clever C-pillar line, plus the visor-style glass profile, and praise Lotus for the cleanliness. And if this has given you a thirst for more Lotus, fear not – it’s not the only new car in the wings. A three-car, five-year plan will see a mid-engined ‘Esprit’ arrive and a new Elise too.

CarDealer

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Kahn you believe SsangYong stunner?

Order books open for new Ibiza Sportcoupe SEAT pulled the covers off a world debut – the three-door Ibiza. Sorry, the Ibiza Sportcoupe. Don’t, whatever you do, call it a three-door. Mind you, looking at it, this is far from just a five-door Ibiza with two fewer entry points! Rather, it’s a car that will sell on its looks alone. It’s pumped and much more muscular than the more practical five-door, and should make for a fantastic supermini hot hatch in FR and Cupra guise. Value pricing hasn’t been forgotten, either. A 1.2 S starts at £8,595, £400 less than the five door. Handsome value. SEAT UK head of marketing, Steve Robertson, said ‘dealers have opened their order books in anticipation’.

SsangYong pulled off a minor-league shock when it unveiled its own Kahn! Previously the doyene of seriously-tuned Range Rovers, the Project Kahn Rexton 270 SPR caused a bit of a stir. The Rexton R-Line, from the Bradford tuning house, has 22-inch alloys, lowered suspension and a bespoke exhaust. It’s available now at £30k.

Green in more ways than one!

Ford launches two very different green machines in the Prius-beating Fiesta and 300bhp monster Focus FORD announced it’s to sell the greenest family car in Britain. As the all-new Fiesta took its UK bow, the maker revealed an ECOnetic version will average more than 76 to the gallon, enjoy free road tax, and emit just 98g/km of CO2 – all for an £11,845 list price. On all counts, these figures hammer the Toyota Prius, which stoked up interest in the Fiesta even more. Not that the new supermini really needed it. Set for an October launch,

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the three and five-door Fiesta range is set to be the sharpest supermini around, with real verve in its curves. Prices are also eye-opening. It starts at £8,595. By way of contrast, the stunning Focus RS was also on show. With 300bhp, a limited-slip diff, clever front suspension and styling harder than Vinnie Jones, it’s a car we can’t wait to try out. We’ll be doing so next year – hopefully, in one this mad shade of green.

FLA reveals dealer finance is on the rise Good news for buyers seduced by all the new metal at the motor show. The Finance & Leasing Association reported that car dealers are selling more new cars on finance than a year ago – showing that credit is out there. POS car finance for the year to date is up by six per cent, from £11.3bn to £11.9bn. That’s funding for just under 50 per cent of all new retail car sales, compared to 47 per cent in 2006-07. ‘In current market conditions, buyers may worry about getting a good deal on their next car,’ admitted FLA director general Stephen Sklaroff. ‘Dealerships can help by offering competitive finance packages to fit all pockets.’

Faster Imprezas

Subaru has responded to dealers’ calls for faster Imprezas – in dramatic fashion! From September, two new editions will be available: the £22,495 WRX-S, with 251bhp, and the 325bhp, £30k WRX STI 330S. Nice.

World debut the night before show

Chevrolet beat everyone at the show, by revealing a true world debut the evening before. Production details of the Camaro muscle car were shown – with details emerging that it’s coming to the UK! From 2010, around 500 of the V6 and V8 retro coupes will be sold here annually, at a bargain price. ‘By then, our entire product line will have been renewed,’ Chevy marketing manager Les Turton told Car Dealer. He also revealed 2008 sales are 12.5 per cent up (see p18).

NICE on the hunt for new dealers

NICE, the electric car company, launched the £8,995 MyCar – a smart fortwo alternative – and the £13,995 Ze-0. The what? ‘The world’s first family electric car,’ apparently. What’s more, while the main electriccar benefits are still in London, the company does have plans to expand and is interested in speaking to dealers.

Stunning MiTo to take fight to MINI MINI, watch out. Alfa gave the MiTo its UK debut – a supermini we think looks the absolute business. Priced from £10,975, the Grande Punto-derived three-door takes all the cues from the 8C Competizione supercar, and brings them bang into the premium small car sector. The range-topping 155bhp 1.4 turbo Veloce costs £14,975.

07 31/7/08 19:10:17

dashboard SEAT poaches top bod from Vauxhall

SEAT UK has a new head of aftersales – poached from rivals Vauxhall. Nigel Griggs takes over from Gary Wells, who’s off to India with Volkswagen. Griggs joins SEAT from leading the UK Vauxhall aftersales operations team since 2006. He said: ‘I think the next few months are set to be a particularly exciting time for the SEAT brand.’

Motorseeker site can help traders START-UP vehicle sourcing platform motorseeker.com plans to help dealers and retail buyers find cars in seconds. The web-based new and used car business launched on July 1 and promises to source any model of car or van. Non-franchise affinity partner dealers can access the service as well as members of the public. Find out more on the website or call 0845 331 3482.

For daily news updates, editor’s blog and an all-new job search engine visit cardealermagazine.co.uk

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UK top spot for Scirocco

THE comeback of a sportscar legend – that’s what VW product marketing director Ludger Fretzen thinks of the new Scirocco. And the good news for dealers? The marketing chief believes Britain is the ‘ultimate’ market for the twodoor, four-seater sports coupe. ‘British buyers should top 9,000 customers in 2009 and you could even see Scirocco sales exceed those, even, of Germany,’ Fretzen exclusively told Car Dealer. ‘I know British dealers are very, very excited about the prospects of this newcomer. It is the most dynamic and technologically advanced production coupe VW has ever built. I am very proud of the vehicle.’ A total of 795,650 Sciroccos were originally built and the new third generation model, costing from just £20,940 will, argues Fretzen ‘be the last word in affordable sporting luxury’. He also revealed that more than 11,000 people in the UK have signed up to

receive email updates on the new car. Fretzen says the typical buyer will be aged 25 to 45, and that 40 per cent of dealer sales will be to the fleet market. More good news comes from Martin Ward, the price specialist at CAP, publishers of the Black Book. He told Car Dealer: ‘I believe residuals will be something like 10 per cent stronger than the Golf GTi which has a smaller length and width but an identical wheelbase size to the Scirocco. The price is perfect.’ RICHARD GIBBON

320bhp GT24 edition IT might have only just been launched, but already it’s been given the go-faster treatment. The Scirocco below is the GT24 which made its UK debut at the Goodwood Festival of Speed. It focuses heavily on cars that took part in the Nurburgring 24hr race with a 320bhp 2.0-litre turbo engine and six-speed DSG gearbox.

Credit crunch sees warranty sales rise Birds cost millions a year CAR buyers’ credit crunch worries are leading to renewed interest in used car warranties. Vulnerability to unexpected bills means dealers selling models older than five years are seeing increased demand for warranties. ‘Buyers at this end of the market often have less flexibility in their personal finances than those spending more on a vehicle – so, in many ways, a warranty is more important to them,’ said RAC Warranty’s Ian Simpson.

VALETERS nationwide will no doubt testify to this – birds are hard work! But did you also know they’re costing motorists £57m a year? That’s the price of repairing damage caused by bird droppings – something that nine out of 10 drivers have been on the receiving end of over the past year, says Zurich Insurance. While this may sound lighthearted, there is a real issue here. Barely one-in-five drivers remove it immediately, with a third waiting until they next wash the car. That’s despite 38 per cent of motorists reporting permanent paint damage from droppings – something that will seriously hit values of used cars. Better get cleaning...

Tel: 0845 257 8105 Fax: 0845 257 8106

www.flagpoleexpress.co.uk Email: sales@flagpoleexpress.co.uk

CarDealer

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Hybrids way forward New RX model will be available exclusively in hybrid guise as Lexus admits sales of petrol variant are poor

Burgess Just checking An attack of the clones is the latest worry for dealers

t won’t shock you to hear that cloners – car thieves who hide the true identity of a stolen car with that of another similar vehicle – are a bit partial to a posh set of wheels. We’ve checked out claims on the HPI Guarantee over the past four years and Mercedes and BMW are easily clear favourites. Looking a little closer we know that the Mercedes C Class and BMW 3 Series are prime targets, along with the Audi A4 and the Volkswagen Golf and Passat. While the industry as a whole is constantly warning buyers to keep their eyes peeled for these crafty cloners, you wouldn’t believe how many clone claims we get from consumers who have paid less than 70 per cent of the market ‘Even white value for the car. Why didn’t alarm bells ring? van man needs Equally, there are hunto watch out dreds of people out there for criminals willing to hand over thousands of pounds in cash to trying to earn a complete stranger. As we all know, criminals a fast buck are opportunists and will from a cloned exploit any weakness, vehicle.’ whether it’s in a car’s security system or its identity. But together we have worked hard to improve the quality and accuracy of the data the industry holds on used cars. Inevitably, this has made selling a stolen vehicle without changing its identity all but impossible. Today, cloning is believed to be one of the biggest, if not the biggest, threat to buyers. What I was personally surprised to learn is that the Ford Transit, Mercedes Sprinter and Nissan Nivara all appear on our top 10 most commonly cloned list. The white van man needs to watch out for criminals trying to earn a fast buck, particularly in today’s economic climate. The last thing a sole trader needs is his essential set of wheels to turn out to be a clone. While we can also see that the thieves seem to focus on targeting one model from a particular manufacturer, and then moving to another, it’s not clear if this is because they are shifting their tastes to suit the market or if they just move on when security measures are improved on their current favourites.

Who is Daniel Burgess? Daniel is automotive director of HPI. Find out more about HPI‘s services by logging on to www.hpi.co.uk or call 01722 422 422

LEXUS will only bring in hybrid versions of its RX sport utility vehicles when the new model is launched next year. Miguel Fonseca, UK managing director of Lexus and Toyota in the UK, said sales of petrol-only versions of the current model were disappointing. And he admitted that Lexus sales in general are suffering as consumers shy away from luxury vehicles as they tighten their belts. ‘The luxury market is down and the only part of it where sales are increasing is in the medium-size C-segment,’ said Fonseca. ‘Unfortunately we do not have a C-segment car and our year-on-year Lexus sales in the UK are 20 per cent down and

are expected to fall to 12,500 sales this year against 15,000 in 2007. ‘It’s a difficult time and we are working with our dealers to get the balance right for the franchise and concentrate as much as we can on our service and aftersales business. We do have very good customer loyalty in terms of people bringing their cars back to dealers.’ Toyota is doing well though with demand for the Prius outstripping supply. Fonseca said the company will sell a record 9,351 of the eco models this year. ‘We could sell more, but we can’t get enough of them,’ he said. Downturn winners, p18

70% plan to hold off buying

A POLL has found nearly 70 per cent of drivers plan to delay changing their car – and it’s the credit crunch that’s the root cause (surprise, surprise). Motorpoint carried out the survey online and an impressive 4,500 people responded. The poll revealed that one reason for drivers holding off is the difficulty in obtaining credit. By way of contrast, sales at Motorpoint are actually up, but the supermarket says this is through people turning to its own finance packages instead.

Profit areas ‘ignored’ DEALERS should identify areas where they can increase profitability in order to beat the credit crunch. Motor industry consultancy Network Automotive says there are many profit areas being ignored. MD Colin Bruder said: ‘For most dealers, it is becoming clear that they will not ensure future profitability by doing more of the same. They need to find new avenues to maximise their potential. ‘It is not enough to just tell staff that they should be doing more,’ he explains. ‘You need a credit crunch plan.’ Areas to target include F&I, selling more service hours, cleansing databases, redoubling Motability sales and targeting local firms.

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Simplified margins for Ford dealerships Blue Oval marketing chief says manufacturer is making it easier for dealers to get on with the job of selling cars FORD dealers can look forward to a total market share of 15 per cent with more activity planned for the Blue Oval than ever before. UK marketing director Mark Ovenden, right, said Ford has made things easier for dealers with simplified margins and is now working hard on producing more products that will attract even more buyers. In an exclusive interview with Car Dealer, Ovenden, who joined Ford back in 1985 straight from university, said Ford dealers are currently enjoying ‘the best product range for 15 years’. The 44-year-old added: ‘Dealers have never been more active and are now much stronger relative to the competition. Our marketing process is much more simple. Residuals have been boosted, specification levels enhanced and our outlets are happy to be selling Fords for what they get on them rather than what they get off! ‘We have simplified margins, made it easier for dealers to trade, worked hard on staff training and they now have strength right across the range. ‘The New Mondeo and Focus have done

Tew Net gains Use these quiet times to improve for the good times

extremely well with diesels the star of the show, we have the new Kuga to look forward to, the New Ka and a total replacement for the Fiesta soon to be launched.’ Ford currently boasts more than 400 main dealers in Britain and Ovenden says these main agents will be tasked with focusing on ‘niche as well as volume’. ‘Traders are very happy with the way things are going,’ added Ovenden. ‘There is still more work to do, but we are very much on the right track. We are not a one-trick pony. I am really proud of what we have achieved – and the growth will go on!’ RICHARD GIBBON

£1bn worth of fuel is wasted by wrong cars FUEL worth £1bn a year could be saved if motorists chose the greenest car possible. But buyers are making the wrong choices because they are completely in the dark over what CO2 is! The Energy Saving Trust has found that people are making poor choices, both environmentally and ecologically, despite there being plenty of ‘green’ motors out there. The trust blames marketing citing the fact more desirable cars in ranges are often the ones that produce more CO2. That, as we all know, is because they’re faster – but never mind that… However, consumers not understanding the relevance of CO2 is not helping the situation, though. And that’s where you come into the equation – dealers need to explain the relevance of CO2 to prospective buyers especially in these ‘green’ times, says the trust. Car Dealer Green Special: Seat Econetic, p29; Gr££n dealers, p43; Dotcom, p51

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New £1.5m Skoda site creates 18 jobs SKODA has created 18 jobs in the Midlands, with the opening of a new dealership. Central Skoda Birmingham opened last month on the Tyburn Road, following a £1.5m investment. Innovations include a priority servicing scheme, which reduces costs as vehicles get older. There is also a tyre, exhaust and MOT centre on site. A full range of new models is housed, with more than 100 used cars on site, too. Dealer principal Mike Byrne said: ‘The Skoda brand keeps growing due to its focus on customer satisfaction and I’m really pleased to be a part of that.’

f showroom traffic is slowing, don’t panic and don’t let it get to you! Use the time to chase custom in other ways. We did some email marketing to dealers recently and only 25 per cent of the emails we sent out were actually opened. Disturbing? You bet. Think about it – if the phone rang and nobody answered, what would the dealer principal say? Emails shouldn’t be treated as any less important. Remember, customers today are time-poor. They could be researching at 11pm, sending out enquiries that are still completely valid. A while back, I enquired about an Audi and it took the dealer three months to get back to me! Funnily enough, the car ‘If the phone was sold – just as somebody else sold to me. I rang and actually emailed them back nobody – it came as no surprise answered it they didn’t… Is there anyone in your what would the business reviewing the response rate of emails? Test boss say? It’s this by sending an email to the same with ‘yourself’ via an easily set- emails...’ up ‘hotmail’ account – see how quickly your staff respond. It’s the only way to really test these things. Even with best-practice initiatives, the impetus tails off with time. Remember to look at what’s actually in the email, too. If someone is putting in a phone number, this is an open invitation to call them. So do it! As for other information, the Data Protection Act means you should be careful about what you do with it. But clue up on the Act: so long as you say how you’re using it, and the person has agreed, this great-quality data is free for you to use. Ensure you’re covering yourself fully here – this data is extremely valuable! You pay a lot of money to get it, yet here it is, given to you! I’d recommend you measure conversion rates. This is a biggie – if 70 per cent of your marketing spend is on print, yet 70 per cent of customers are coming via digital, have you got your sums wrong? We find that dealers who do measure this are generally astounded at the traffic their website generates – typically, well over two-thirds of leads. Ignore it at your peril…

Who is James Tew? James Tew is managing director of Codeweavers. Learn more about how he can help you at www.codeweavers.net or call 0870 443 0888.

13 31/7/08 19:10:31

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Fleets’ one-stop shop

henstock Auction stations Green car values rise as consumers tighten belts

ising fuel prices and the effects of the credit crunch seems to have given a boost to alternative fuels. Alongside news that motorists are driving less, car sharing and even downsizing due to fuel costs, it appears there is a sudden but blossoming interest in eco and alternative fuels. The key issue for ‘green’ alternative-fuelled cars is acceptability with the general motoring public, because they will drive the demand in the used market. It would appear demand is on the rise because average values for hybrid/ electric and LPG-powered cars are well ahead of expected guide prices – and have been for much of 2008. Values from the latest Pulse report for June show ‘There appears that the small number of LPG vehicles entered for to have been a sale by fleet operators have consistently outperformed sudden but blossoming guide prices. Comparative average values for LPG cars interest in cleared 115 per cent of CAP eco-friendly cars Clean in June, for vehicles and alternative that are four-and-a-half years old and have covered fuelled vehicles.’ nearly 70,000 miles. Look at some individual models and average values can be astounding – five-year-old Vauxhall Vectra 1.8 LS Saloon Bi-Fuel models are averaging 154 per cent of CAP Clean at 66,000 miles. In comparison, average fleet values for petrol and diesel have been in decline compared to CAP Clean and currently are hovering around the 92 per cent mark. Demand is also high for hybrid electric/petrol cars such as the Honda Civic and Toyota Prius and average prices on BCA’s Auction View service are well ahead of CAP Clean values. Admittedly, one factor that ties all these alternative-fuelled models together is their scarcity but there still has to be demand to record such strong average values. It all reflects a growing interest from motorists in more economical driving that we first monitored around a year ago. This time last year, BCA asked nearly 3,000 UK motorists what they might do to reduce their carbon footprint – 32 per cent said they would walk more and 25 per cent said they would cut their journeys. Some 19 per cent said they would consider a car with lower emissions and 16 per cent that they would buy a smaller car.

Who is Simon Henstock? Simon is UK network operations director for BCA. Find out more at www.bca-europe.com or call 0845 600 6644.

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vrs automotive opens new garage which offers dealers state of the art facilities and ﬂeet servicing VRS Automotive have opened a state of the art garage in Coventry. The one-stop shop for fleets has been described as ‘the most impressive MOT test station in the UK’ by the Ministry of Transport and can provide dealers with a full range of services. ‘We are the garage’s garage, with above dealer-level products and services for trades and businesses,’ explained a spokesman for VRS Automotive. ‘Dealers can let us handle bookings and we bill lease companies directly.’ The new facility can cope with all makes of cars and vans including light commercial vehicles and has modern service bays and a huge auto-electrical fault finding facility to help pin down those problems that can be impossible to find!

credit crunch could push car prices up! CAR sales are slipping as the credit crunch starts to bite but don’t expect prices to come down as a result – if anything they could be going up! Makers at the British Motor Show said a discount war to try and move the metal is unlikely, especially as profit margins are being squeezed. Simon Thomas, European sales chief for Nissan, said he believes the industry will see price inflation. ‘The cost of materials is going up as are fuel and logistics prices and not everyone will be able to absorb this. The costs will have to be passed on,’ he said. His views were echoed by Vauxhall chief Bill Parfitt, who said: ‘While we may see some discounting on a small scale. Prices are more likely to move up as raw material costs increase.’

‘Our technicians use the latest in dealerlevel diagnostic kits to test every car from any marque,’ added the spokesman. Fleets benefit from fast ‘drive-thru’ service and MOT bays with online booking systems for fast turnaround times. ‘We are RAC and AA approved,’ added the spokesman. ‘We are also part of the Good Garage Scheme as well as members of both the NSN and 1Link Network. Our goal is to continually strive to improve on our high quality and customer focussed service. There are future plans to open facilities in major cities across the UK offering more fleets the convenience we can offer.’ For more details log on to www.mot. uk.com or call 024 7630 5501.

invest in service staff training HAVE your service advisers had enough training? If not, they are hitting your profits for six. Castrol Professional’s ongoing survey into franchised service departments reveals that more than half of advisers have received less than the industry-recommended minimum of five days’ training. This has a direct link to profits: the more training they’ve had, the better they are at upselling. ‘Dealers must ask themselves if they can afford not to invest in better training,’ said Castrol.

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31/7/08 19:10:39

dashboard Ferrari 500s are a stroke of genius

Ping! You’ve got new Mail

FERRARI dealers nationwide have just taken on a fleet of new courtesy cars. They’ve ordered 200 Fiat 500s – 60 of which have been built exclusively for the dealer network! The special models are finished in Ferrari red with a specially-tuned 1.4-litre petrol engine and bespoke exhaust. As a marketing tool, we think this is little short of genius!

Arsenal sign deal with French firm CITROEN is Arsenal’s official car supplier for the coming season. The three-year deal will see the Gunners take delivery of a range of vehicles from the company. Models will include the C1, C4, C4 Picasso, C5 and Berlingo Multispace. We also wouldn’t be surprised to see Arsene and the boys chauffeured around in the odd C6 too. Citroen will also be supplying LCVs, including the Berlingo, Dispatch and Relay.

For daily news updates, editor’s blog and an all-new job search engine visit cardealermagazine.co.uk

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C M

L W

Basic checks missed in between services OVER half of Britain’s motorists don’t know when their next service is due. What’s more, one in 10 carry out absolutely no basic maintenance or safety checks between services. The findings come from a survey conducted by Automotive Technician Accreditation, which warns that drivers must become more ‘service savvy’.

Motortrade-mail launches new site with a host of improvements for traders HOW many companies actually listen to what you tell them? Not very many. But it’s those that do listen to customer feedback that really thrive. Motortrade-mail.com knows that and has used extensive dealer feedback in a total relaunch. The all-encompassing redesign focuses around a new-look website, above, as well as a host of additions to the services the firm offers its subscribers. Motortrade-mail is a website that allows dealers to trade cars with each other over the internet. Traders upload their stock and it’s quickly snapped up by fellow dealers using the online network. But now it’s not only cars that you can market on the site. The makers

have added commercial vehicles, caravans, motor homes, motor bikes and even private plates. It’s a one-stop shop for trading! ‘After months on the road meeting with the likes of Cattles Group, GRS, Infinity Motorcycles and VanMonster. co.uk we have listened to what dealers had to say and re-launched with these comments in mind to bring dealers the first trade site with all these different elements,’ explained Motortrade-mail chief Josh Berkovits. Motortrade-mail.com has also included a dealer directory that lists details of products and services traders are likely to need in their daily business. These include listings for warranty providers, insurance and finance.

Let’s discuss the merits of bio-fuel CLAIMS that growing crops for bio-fuel is causing a food shortage are misleading – that’s the view of car makers who are calling on the government to discuss the issue. Bentley’s marketing chief Stuart McCullough said the stance the government is taking on

bio fuels was unhelpful, adding: ‘We need a proper debate on bio-fuels to get some clarity. Bio fuels are not causing food shortages, the issue is much greater than that – for example China is eating more.’ Vauxhall chief Bill Parfitt was in agreement. He said: ‘There is certainly a place for bio-fuel as an alternative to oil.’

‘We even offer free, unlimited DVLA searches that helps speed the process of adding stock to your site,’ added Berkovits. ‘It’s not a time-consuming process and can really help you make that sale.’ You can add up to four pictures with every listing and even video to help get your stock shifted. The new site means a new pricing structure, but it’s still highly affordable at just £34.99 per month. To thank loyal customers, Motortrade-mail.com is offering existing users the chance to continue using the site at their current rate – very decent of them indeed! For more information log on to www.motortrade-mail.com or call 020 8800 1118.

Virtual dealership launched SKODA in St Albans has launched an initiative called ‘Skoda2U’ – it gives customers the full range of dealer services... in their home. Palmers take their business to customers including test drives, brochures, appraising part-exchanges, even the salesperson. It’s essentially a dealership without the constraints of, well, a dealership!

CarDealer

31/7/08 19:10:44

WOW!

HAVE YOU HEARD? COMMERCIALS, CARAVANS, MOTORHOMES, MOTOR BIKES AND CARS ALL ON 1 SITE. LOG ON NOW TO FIND OUT MORE WWW.MOTORTRADE-MAIL.COM

CarDealerIss6.indd 17

31/7/08 19:10:44

dashboard Ford chief’s worries at new car sales

Budget buying boom!

30% Kia

ECONOMIC worries may lead to a slowdown in new car sales, warns Ford of Britain chairman Roelant de Waard. People are also looking for more environmentally-friendly cars, said de Waard at the opening of a new Ford dealership in the West Midlands. De Waard spoke of a concern in the market about demand and that we might see a ‘slowdown in car sales’.

...but survey says buyers are out there EXCHANGE & Mart has found nearly two-thirds of people surveyed intend to buy a car within the next six months. And this points to a promising September plate change. However, fuel costs and the credit crunch means buyers will be thinking even more carefully than normal about splashing the cash. ‘Buyers will be looking to find the best package, as well as the best price,’ said the firm’s Debra Healy.

For daily news updates, editor’s blog and an all-new job search engine visit cardealermagazine.co.uk

12.5%

6.1 % Perodua

Chevrolet

Richard Aucock reports on the budget car makers enjoying a sales resurgence BARGAIN hunters are pushing sales of budget makers’ cars up. Kia are 30 per cent to the good, Chevrolet is enjoying a 12.5 per cent increase and Perodua sales have risen 6.1 per cent. In a market seemingly down across the board, price savvy customers are the reason for these jumps. Just as people are switching from M&S to Lidl, similar downtrading is happening in the car business too. ‘In tighter economic times, quality and value become more important than in buoyant times,’ Kia boss Paul

Philpott told Car Dealer. ‘If house prices are going up, you go and buy something flash. When they’re not, people start to look at brands with a better value proposition.’ Les Turton, marketing manager of Chevrolet, echoes these sentiments. He told Car Dealer on the marque’s stand at the British Motor Show: ‘Today’s conditions, where buyers are watching what they’re spending, really favour Chevrolet. We’re drawing people seeking better value for money. ‘We find customers often can afford

Honda dealer on an HP-high note! Alan Day Honda has signed a three-year deal with HPI to provide provenance and mileage data on its used car stock. ‘HPI delivers a costeffective service designed with the customer in mind,’ said financial director Steve Fossey. HPI’s Daniel Burgess said: ‘We are delighted to have won this contract.’

a dearer car – they simply prefer to use their savings in other ways.’ The brand also notes that multi-franchise outlets, which form two-thirds of their footprint, are helping as well. Buyers are visiting more expensive brands to look for used models are actually seeing they can afford a brand-new car instead. ‘We find customers are surprised – they often do a double take at our quality,’ says Philpott. With no let up on the economy woe in sight, this shift looks set to only continue.

SsangYong signs MB&G SSANGYONG has found a new warranty provider for approved-used vehicles. Mechanical Breakdown and General Insurance Services – MB&G – has won the extended warranty deal. Warranties for approved used models up to seven years/70,000 miles will be offered and a partnership with the AA provides breakdown cover, too. This covers mechanical and electrical breakdowns. ‘This will enhance our relationship with our dealers and their customers,’ said SsangYong’s Ian Nicholson.

NEXT MONTH IN CAR DEALER MAGAZINE...

How to reward staff Although it helps, looking after your staff is not just about paying them well! Next month, we’ll be looking at the best ways to attract, and keep, the very best employees If you’d like to highlight your products and services in this feature call us now on (023) 9252 2434

18 CarDealerIss6.indd 18

CarDealer

31/7/08 19:10:47

COS0

Grow your business with the award winning new SsangYong range. ‘It will work for you’ Under new ownership, SsangYong in the UK are relaunching the brand with a new award winning range of competitively priced 4x4s and MPVs backed up by a multi million pound marketing campaign. To support this investment they are looking to recruit entrepreneurial dealers who can help form part of a successful national sales network. Become a SsangYong dealer and benefit from: t An innovative dealer development programme that will help you make more, sell more and deliver a better customer experience t Low cost of entry t Business driven achievable franchise standards t Extensive local marketing support including a new dealer web portal t A full programme of after sales support covering competitively priced parts, warranties, training and technical support t A comprehensive used car programme t All backed up by generous dealer commercial terms

Find out more The pulling power of the new Rexton

The versatility of the new Kyron

The space of the new Rodius

Call Ian Nicholson on 01252 619100

www.ssangyonggb.co.uk

CarDealerIss6.indd 19 COS00000_Ssang Dealer Recruit_A4_MV02.indd 1

31/7/08 19:10:47 3/28/08 12:24:31 PM

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31/7/08 19:10:49

the insider

Getting shot of old stock W

ith more than 30 years in this cutthroat industry, I’ve learned a few tricks – and I know that sometimes, whatever your intentions, the cards aren’t always stacked in your favour. For that reason, I have a very strict rule when it comes to stock: If it’s been on my lot for 20 weeks, it goes no matter what. You’ve all had them – cars that you just can’t shift. They sit on the lot until the tyres are the shape of toilet seats, there’s moss growing in the roof gutters and a bunch of weirdy beardies have established an owners club in the blasted thing’s honour. I had one the other week that caught me with my pants down – a tidy previous-shape Mercedes C-Class diesel, finished in sales rep silver, six figures on the clock but only just, and the good book fully stamped by the same Mercedes dealer up to 86k. You’d have thought it would have flown out the door! In normal circumstances, I might have been tempted to hold on and wait for someone to come and buy it, but if you set yourself targets you have to be ruthless and the Benz’s time had come. So I drove it down the auction, took a bop on the nose to the tune

of £350 against its stand-in value, and came back in a three-year-old Corsa – easy meat on a lot like mine. Regrets? Well, it was a bit tragic letting the Merc go without a profit, and it smarted to take a hit, but I’m a man of principle, and fresh stock equals a fresh-looking lot. Otherwise you’ll end up like my mate, Don – a man so parsimonious with the pennies that in a previous life I swear he was Silas Marner’s financial adviser. Don simply won’t take a loss on anything – he’d rather not sell a car at all than sell it for less than it owes him, which is why on his lot you’ll see an intriguingly incongruous collection of metal at prices that make Zimbabwean inflation rates easy to understand. I jest not – when I went round to Don’s for a cuppa last week (he pegged the teabag out on the line afterwards, lest it yield

another brew) he had three cars in a row, all at £1,995. They were a ‘51’-plate Mondeo, an S-reg Rover 75 and an N-reg Renault Laguna 1.6 base model. The Mondeo looked good value, the Rover had a fighting chance of giving a return if he pushed it quickly, and the Renault was pretty much ready to be weighed in. Somewhere out the back, he probably had a Montego with a four-figure sticker in the screen... I tried to explain to Don how he was doing the rest of his stock a disservice by persisting with shocking old rubbish. I showed him the flat spots on the tyres, the cobwebs in the interiors, the peeling lacquer and the expired tax disc. He listened politely, to the extent I thought I was actually getting through, but I should have known better. I went round again the following week for another brew (it tasted a bit earthy, like the teabag was on its second cycle) only to find the Laguna with its tyres inflated, paintwork polished and interior nicely hoovered, but still with no signs of a price reduction – a bit like putting lipstick on a pig. Sometimes in business, you just have to take a hit – then you might be able to afford fresh tea bags...

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a service from 31/7/08 19:10:55

Car dealer Ewards

re: ewards entry subject: Franchised dealer uRL: morrisons-garage.co.uk As our search for the best motor trade websites continues, our judges take a look at one of the latest ﬁrms to enter the Car dealer Ewards in association with Motors.co.uk

etting things right on the internet is all about simplicity – as one of our first Ewards entrants will testify. Archie Morrison, of Morrisons Garage, is one of the first to submit his firm’s website in the Car Dealer Ewards in association with Motors.co.uk. Morrison holds franchises for Land Rover, SEAT, Fiat and MG Rover and all are taken care of on the morrisons-garage.co.uk site. The garage chief said he wanted his site to be eye-catching and have an interesting layout – but at the same time be easy to use. ‘We wanted to give people information about our business as well as contact information, news and our location,’ said Morrison. ‘The site was not too expensive to produce, but is easy for us to maintain and update as we’re mostly non-technical web people.’ The website is updated daily by Morrisons Garage staff with the latest used car stock and this is also posted on Motors.co.uk, Auto Trader and eBay Motors, among others. ‘Customers can book services online as well as join our VIP Owners Club which displays special offers to members who can access a password-

protected area of the site,’ added Morrison. ‘Our site has achieved our objectives in a very cost effective manner.’ Every month in the run up to the Ewards we’ll be asking our judges to take a look at one of the sites from that month’s entries. This will help other dealers find out exactly what the judges are looking for. Katie Armitage, marketing manager of Ewards headline sponsor Motors.co.uk, liked the clear navigation on the Morrisons Garage site. ‘It’s great to have a special offers section as that page is likely to generate a lot of interest from users,’ explained Armitage. ‘The news section is up to date and the fact you don’t have to hunt for contact information is a boon. However, we think the email us should be a form rather than a “mailto” as this is difficult for webmail users to use.’ We also asked G-Forces sales director Jamie Dixon to take a look. ‘The Morrisons Garage site is a positive step for the business as it has provided the group with a gateway to presenting themselves online,’ he said. ‘One problem, though, is that the website

allows you to “leave” it to read car reviews, which shouldn’t be encouraged.’ Josh Berkovits, from Motortrade-mail, was impressed with the Morrisons Garage site. ‘It’s very easy to use and is healthily maintained with current content,’ said the Ewards judge. ‘I also like the fact it is clear and concise. Some might say it’s plain but others would describe it as practical. I’m in the latter camp.’ The Morrisons Garage site will now go through

NOW MEET THE JuDGEs Jamie Dixon

Dave timmis

0845 055 9040, gforces.co.uk ‘Your website should reflect the experience a customer receives from your business, so the care and attention you invest in your showroom(s) should be delivered online. Ultimately your website needs to generate and support sales: it needs to be easy to find, it needs to be focused on your customers’ requirements, and it needs to be engaging. It is about delivering a personal service and complementing your business methods.’

0161 482 7650, reallygooddomains.co.uk ‘We will be looking for websites that capture enquiries and generate business. Our developers, designers and search engine optimisation experts will be looking for eye-catching, easy-to-navigate, quality websites which are quick to load and simple to use. Clear navigation, cross browser compatibility (including mobile technology) and features like RSS feeds will be very important.’

g-Forces sales Director

22 CarDealerIss6.indd 22

really good Domains mD

Josh Berkovits

motortrade-mail mD

020 8800 1118, motortrade-mail.com ‘Our business is totally designed around the internet and helping dealers make that sale online, so we have a good idea of what people like to see in a website. It’s not just about your name – we’ll be looking for ease of use, contact details that are simple to find and other handy features. Sites should look smart, but not flashy – we’ll really be judging winners on the end user’s experience.’

CarDealer

31/7/08 19:10:57

....sponsored by Motors.co.uk

How you can enter

n an attempt to help you make the very most of the web, we’ve launched the inaugural Car Dealer Ewards in association with Motors.co.uk. Our aim is simple – to find the best car dealer websites on the net! We’ll be handing out gongs in four categories – so first you need to pick which one suits you. They are: ■ Independent Car Dealer Website of the Year ■ Franchised Car Dealer Website of the Year ■ Special Web Achievement Award ■ Car Manufacturer Website of the Year Once you know which category best suits you simply send an email to james@blackballmedia. co.uk with the name of the category – ‘Independent’, ‘Franchised’, ‘Special’ or ‘Manufacturer’ will be fine – in the subject bar, your website address and no

more than 250 words as to why you think your website should win. We’ll come up with a shortlist of entries which will be put forward to our expert judging panel – see details below – who will vote for their favourites. To ensure things are fair, each judge will have a set allocation of points to award to the shortlisted websites and then the judges’ scores will be totted up to give us our winners. We’ll announce the results in our December issue which is published in the middle of November. The deadline for entries is OCTOBER 17 but we want as many entries as possible now – remember, the sooner you get your entry in the better the chance of being featured in one of our monthly previews. Good luck!

ewards headline sponsor and judge... helen rapp

motors product manager Our judges liked the clean and simple layout of the Morrisons-garage.co.uk website to the next stage of the competition. If you think your site is better or a match for the Morrisons Garage send us the details. Every month we’ll be picking an entrant out at random to feature on these pages, so the sooner you get your entry in the higher the chances of a featured slot in Car Dealer. For full details of how to enter check out the story at the top right of this page.

Daniel Burgess

hpi automotive director

0845 300 8928, hpi.co.uk ‘Priding ourselves on our successful online stock publishing system, we know the power the internet holds in building brand recognition and increasing sales. We will be looking for a rounded online offering to the consumer which not only delivers a valuable service, but true peace of mind. Your website will ultimately be your virtual showroom for your stock, but it should also mirror your business culture and customer experience.’

CarDealer

CarDealerIss6.indd 23

0845 265 5502, motors.co.uk

‘At Motors.co.uk we’ll be looking at your website from a used car buyer’s perspective. Therefore the things we think are important are ease of use of the search, quality of stock and quality of response. We’re interested in how the stock is described and presented (specification, quality of photography, number of images and videos) and

in terms of response how many ways can a customer contact you and how quickly and well do you respond? Finally, we’ll be looking for a website which stands out from the crowd and will stick in the minds of its audience.’

James tew

James Baggott CarDealer.

0870 443 0888, codeweavers.net ‘I won’t just be looking at your website – I’m interested in “outside” it, too. I’ll be seeing how easy it is to find, by running a Google search for it! Think about the bloke walking past a dealership one night with his wife. All he’ll remember is the garage name… and how will he find that car he’d convinced her was worth a look? By Googling the dealer name. If your search engine optimisation isn’t up to scratch, people won’t find your site.’

‘I don’t profess to be an expert on the web, which in some weird way qualifies me to be a judge. I’m babbling, so let me explain. I’m really going to be looking at sites from a consumer’s point of view. I’ll be looking to see if they’re easy to use, and assessing them like your clients would. Plus, being the editor, I get the final say in the event of a tie!’

codeweavers mD

car Dealer editor

If you think you should be on the judging panel, call Car Dealer on 023 9252 2434

23 31/7/08 19:11:00

Q forecourt

Could this be the face of socially acceptable 4x4s?

Answer? Quite possibly. Now might not be the best time to launch a 4x4, but the new Audi Q5 has genuine green credentials. But will it sell? words: Richard Aucock

fter years of BMW’s X3 soaking up all the sales in a sector it invented, finally Audi’s here with a premium compact SUV rival, but is it really the right time to be launching another SUV? Well, Audi certainly thinks so. This is a sector manufacturers have eyes on for success in the future. They believe as large SUV sales dry up, customers will downshift into more economical, publically-acceptable cars like these. These are the friendly face of 4x4s – if there really is one! It’s one of the reasons Audi instructed its design team to come up with anything but a conventional SUV. No squared-off edges or bluff, boxy, InterCity train-like fronts here. The Q5 has a wellprofiled and proportioned nose that has more in common with an A6 Avant than a traditional off-roader. We particularly love how all the vertical lines rise up then rush rearwards; it’s a subtle effect, but really striking once you notice it. As you move to the back, instead of Tonka-toy wheelarches, you get a smoothly flowing shoulderline that blends in and out

24 CarDealerIss6.indd 24

of them, not unlike the same feature on the A5. It’s elegantly subtle. And the roofline gently arcs rearwards, flowing into the tailgate rather than stopping then plunging vertically down. Audi makes a big deal about its wrap-around tailgate, taken from the Q7. It may well be – but here, the effect works. Subtle contouring means, from dead-on rear, there are obvious links with the TT roadster, and if this sounds implausible, wait until you see it. You may not instantly be drawn to it, but give it time. This is a real grower. Of course, it’s not really a true SUV. It’s heavily based on the A4 and A5 underpinnings – they’ve been suitably spec’d up, to give 200mm of ground clearance, a wading depth of 500mm and class-leading cross-axle wheel articulation, but few are likely to discover this. Audi admits that only two per cent of drivers will ever stray off the Tarmac. That’s why it’s been biased to being used on it. Using the A4’s clever new flexible platform, quattro four-wheel-drive >

CarDealer 31/7/08 19:11:03

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forecourt Audi Q5 Price: £29,950 Engine: 2.0-litre, TDI Power: 168bhp 0-60mph: 9.5s Max: 126mph

is standard, and both ride and handling tuned, according to Audi, to match not only rival machines, but the best from the compact executive sector, too. This is crucial. A large chunk of sales will be from those who’d otherwise buy a BMW 3-Series Touring or Audi A4 Avant – people who want more flexibility and, crucially, want to stand out from the crowd. If it were inept to drive, all the hard work done by the stylists would be for nought. It’s far from it, though. No sooner do you stray on to urban roads, do you appreciate one big advance over its X3 archrival: a much better ride. Yes, the BMW is way too firm, but even so the absorbency Audi has engineered in is impressive. City centres are a much more comfortable affair, and upping the speed doesn’t introduce excessive roll or lurch, either. Going faster also shows off the fast-responding steering. The variable-assistance rack has a big disparity between low-speed lightness and higher-speed heft (particularly in sportier models), but there’s no denying its accuracy, even if overall feel is lacking. You also can’t argue with the stability of the chassis, nor the confidence it breeds. The quattro system constantly shifts its torque split front to rear: the nominal bias is 60 per cent to the back, but it can send up to 85 per cent rearwards. If you time it right, you really can get a whiff of oversteer! Ok, it’s not as flat and roll-free as the BMW, but levels of roll are far from excessive, and again, it’s all so well controlled. It’s even more impressive if you choose the ‘Audi Drive Select’ option. This throws in electronic dampers, plus variable settings for the steering throttle and gearshift points. It makes the Q5 both a better-

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‘A large chunk of sales will be from those who’d otherwise buy a BMW 3-Series Touring or Audi A4 Avant – people who want to stand out from the crowd.’

controlled, more roll-free machine, as well as a better-riding one, too. And the new S-tronic semi-auto gearbox is good too. This is like VW’s DSG unit, but boasts seven speeds and peerless shifting. It’s brilliant, and standard on the 2.0-litre TFSI petrol and 3.0-litre V6 TDI. Both are cracking engines, but it’s the 2.0-litre TDI four-cylinder that will take nearly four in five sales. Luckily, this is good, too. Mated to a six-speed manual gearbox, it produces 167bhp. And, while not a rocket ship, is usefully punchy on the road. It’s quiet, too – the lack of clatter is almost unnatural for a diesel machine. An 1,800kg kerbweight is, of course, weighty, but not uncommonly so by sector standards, and doesn’t hinder economy. The 2.0 TDI cracks

42mpg and emits 175g/km of CO2, superb figures that help make the Q5 justifiable. Buyers will be appreciating these good road manners from the best cabin in the business, which feels anything but downsized. Ok, the BMW is certainly no great shakes; we’ve always moaned about its plasticky interior, just as we’ve always griped about the ride. But Audi has still pushed the game on – a Freelander doesn’t know where to look either, such is the quality of the smooth-finish plastics. Seats are set high, intentionally, but are extremely comfortable, and the dash design, while very Audi, is also quite exceptional in places. Three in the back (there won’t be a seven-seat model) will also enjoy equal comfort, and split seats that slide back and forth. All told, then, quite some on-road performance. So how do the finances stack up? Well, an SE, with leather, 18-inch alloys and daytime running lights, in 2.0 TDI guise, costs a smidgen under £30,000. For something with the best retained values in its sector, we reckon that’s far from excessive. And full justification in it earning a slot on our front cover. Green, good-looking and financially sensible, Audi dealers should have no trouble selling the 8,000 they’re being given to shift next year… Perhaps this could be part of a new breed of socially acceptable 4x4s!

CarDealer

31/7/08 19:11:12

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31/7/08 19:11:14

cult cars forecourt

M G

ean reen

reen cars don’t come much more penny pinching than this little SEAT. In fact the only motor which can compare with its 74.3mpg combined average, or 99g/km CO2 figure, is the Volkswagen Polo Bluemotion. But the thing is – this SEAT is better! Yes, it draws from the Polo platform, so the two are pretty much identical beneath the surface, but SEAT has managed to not only include air con as standard, but also do so for a much lower list price than the VW. An Ibiza Ecomotive can be yours for just £10,940 on the road – and by eco car standards, that stands alone as being pretty remarkable. As mentioned, it has exactly the same mechanicals as the Polo – for that, read 1.4-litre threecylinder turbodiesel, tuned for high efficiency and mated to a standard diesel particulate filter. Throw in stretched ratios from third to fifth, and you’ve got one very parsimonious unit indeed. It starts to a right old clatter, and sounds pretty horrifying at first, especially when cold. But, on the move, it has that usual triple-cylinder trait of smoothing out almost completely. Give it a few revs and you’ll soon be keen to pile on some more, so effervescent does it feel. No, it’s not dormousesilent, but it’s revvy and entertaining nonetheless. Ecomotive gains elsewhere see a subtle weight

reduction to just over a tonne. With 80bhp and 144lb/ft of torque, you’ll be surprised to find this is actually a pretty eager performer, despite its eco credentials. It responds well to the throttle even at higher speeds, and generally proves that what’s good for economy is also good for efficiency. Namely, making the most of what you have. Through the bends, it’s a hoot. Why? Not through any special tuning to the suspension – it’s still pretty soft – but because the narrow, eco-section tyres offer so much involvement! The limits aren’t high and it’s easy to get it scrabbling around, but this somehow adds to the appeal of thrashing an Ecomotive. Give it a light touch and it’s a really sweet little thing to pile on in. Again, it benefits from that

reduced weight. Inside, it’s no great shakes. The new Ibiza shows SEAT’s learnt plenty in interior quality and finish – the old-shape Ecomotive, along with the rest of the slimmeddown Ibiza range, will serve as a reminder of this, well into 2009. But it’s still roomy, has all the kit you need, and offers tangible economy gains without the piety of some other models. Revised aerodynamics, a subtly modified engine and detail changes elsewhere show that current technology still has plenty to offer. And when it means you even get free road tax, well, who’s to argue against the total savings on offer? Hopefully, not many of your customers! RICHARD AUCOCK

Seat Ecomotive £10,940

CarDealer

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forecourt

I P

mage roblem

hat’s the Passat’s problem? Well that’s quite simple – image. Whereas many will place it a cut above the Mondeo and even the new Insignia, there are just as many who see as it as a positive step down from an Audi A4 or BMW 3 Series. The Passat saloon and estate are upmarket enough, but the trouble is many just simply don’t give them a second glance. So if ever a model needed an eye-catcher in the range it was the Passat. Enter then, the gorgeous coupe-convertible – a car that no buyer will have an excuse to bypass on your forecourt. Firstly to that roof – it swoops down gracefully to the rear, covering four doors and creating a profile that brings one car to mind: the Mercedes CLS. That was the world’s first four-door coupesaloon and this is the second. The Passat CC really is Volkswagen’s alternative to the BMW 3-Series and it matches up courtesy of a bespoke and stylish body that sets it apart in the company car park. And it does it all for a price that bears direct comparison with base 3-Series – we reckon VW might just be on to something here. Take our test car, for example – it costs £21,040 on the road, in 1.8 TSI petrol guise. A base BMW 318i ES? For you, that’s £21,145. There is also a 2.0 TDI 140 model, which is up at £21,870, and is expected to take the bulk of sales. BMW’s 318d costs £23,870. Suddenly, the Passat CC makes a whole lot of sense. Seriously stylish looks help too. While clearly Passat-derived, there’s angularity to the curvaceous, flowing lines that’s not normally seen in this sector. It’s low too – rear passengers have to duck – which adds to the special feel. Inside, the dash is again derived from the saloon, but that’s

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Passat CC £21,040

Placed in an awkward slot between some attractive rivals, the Passat CC needs to offer something more. So does it? a good base to build upon. Volkswagen fits higher-quality trims though, plus indulgent bespoke seats that are superb over distance. With chrome detailing and tasteful wood trim (yes, it really is), it feels uncommonly special for £21k. In the rear, though, fleet managers may get itchy feet. It might be perfectly spacious – but there are only two seats. Yes, they’re individually shaped and, again, comfy but they’re also separated by a big cubby box meaning there really is only space for two. This may preclude it as an option for those whose fleet lists insist on three-seat capability. However, the boot is a good size and the coupe lines don’t encroach too much on to the saloon-style opening. On the road, comfort is the watchword. Superb refinement and an excellent ride set

it apart, despite large alloy wheels. It’s safe, steady and composed through corners, but not as dynamic as a BMW. Volkswagen has a solution here – alongside base models, there’s a GT variant, with ‘Adaptive Chassis Control’. This is an electronic setup that makes it more responsive and dynamic. And that 1.8-litre turbo engine is an absolute delight, with impeccably smooth manners and superb response from very low revs. It’s almost like a diesel in its low-down punch, yet with twice the rev range. Economy is also good, averaging 37.2mpg and producing 180g/km of CO2. Can you tell the Passat CC surprised us? Really special to look at and be in, it seems more a bargain the closer you look. Now, watch eager buyers snap up the 5,800 they’re importing in 2009. RICHARD AUCOCK

CarDealer

31/7/08 19:11:29

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31/7/08 19:11:31

forecourt VXr ‘888’ £18,000

C V 888 orsa xr

nce the lubricants had warmed through, I did as instructed – not change gear until I met the rev limiter. Until then, the Corsa VXR had been, frankly, pretty unsurprising. The standard VXR is a blinding bit of kit – at last, a small Vauxhall hot hatch that’s almost up with French rivals for handling and entertainment. But the 888’s fitment of an aftermarket exhaust had totally transformed the standard car’s somewhat mild aural demeanour into one that burbles, splutters and rasps in direct relation to your right foot on the throttle. The exhaust was always there, always throbbing away. And to me, this was a Good Thing. The ride was a tad harsh in places, but generally tolerable, despite the 888’s lower suspension and 225/35 ZR18 tyres (yes, 35-profile. On a Corsa). Shame they couldn’t do something about the floppy gearshift, slightly grabby brakes and revhold between gearshifts, I was thinking, when I remembered what I’d been told... Right: hard on in second. Blimey! What’s that? A ferocious roar from the exhaust, throatier than a fan after an Iron Maiden gig. The VXR hurtled forward, front wheels scrabbling a touch but reigned in well by admirably discreet (and standard) ESP. The wheel squirmed just enough to let me know all’s alert at the front end, but it wasn’t unruly. Not like the noise. Is something this loud actually legal? Then, finally, just past 7,000rpm, the rev limiter cut in – and I saw what he meant. Fuelling to the 1.6-litre turbo was cut: and the whapwhapwhap

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If any car didn’t need a performance upgrade it was the Corsa VXr. But it’s got one anyway. We ﬁnd out what’s new

from the exhaust was pure, pure Motorsport. It’s outrageous! So I slammed another gear in – and more noise, as a truly explosive crack snaps from the exhaust. This thing is madness! I lift off to do it all again, and burbles, pops and splutter from the central pipe give it further edge. This thing is hardcore, alright. It’s also pretty damn fast with it. It’s all part of the 888 kit Vauxhall offers from its Performance Centre. There’s no such model as a ‘VXR 888’, but there are VXRs treated to the various upgrade options the centre offers. Like our test car’s exhaust, wheels and suspension. Dealers sell the bits (for a suitable markup) or owners can take them to the Oxfordshire centre, to have the same job carried out.

There’s even an ECU remap. That takes power up to 217bhp – which is pretty amazing in a supermini hot hatch. No performance figures have been released, but the standard 189bhp car is already rapid (0-60mph in a sportscarhumbling 6.8secs and on to 140mph). But this thing feels another league. Superbly huggable Recaro seats from the standard model remain, as does a cool steering wheel, BMW M door mirrors plus ample VXR detailing to make you feel special. Our test car creaked and groaned a bit over bumps, but it had done 15,000 hard miles in the hands of hacks. And if they had half the blast I did, no wonder it was starting to feel a bit tired! RICHARD AUCOCK

CarDealer

31/7/08 19:11:35

cult cars Bentley continental gt

here’s a new rumble starting to bellow through Hull, West Brom and Stoke. That of, ooh, 16 W12 engines being given their head. Why’s that? Well isn’t that obvious? Their respective football teams were all promoted to the Premiership and part of the footballers’ kit is this – the Bentley Continental GT. It’s a staple – like Mottie, like six-pointer games, like votes of confidence in soon-to-be-sacked managers. Indeed, it’s hard to imagine exactly what populated club car parks before Bentley launched the mighty Conti back in 2003. It’s even harder to remember the state of the Crewe-based maker before its beefy four-seat coupe came to market. Virtually overnight, it went from a quaint British maker of leftfield anachronisms, into producer of

one of the world’s best luxury GTs. Just look at it. Is there an upscale machine more in keeping with the times? Massive panels ooze premium muscularity. Truly impeccable paint covers proper British beef. It starts with an imposing front with a trad Bentley grille, flows back via huge biceps, to a swooping, bug-like rear. There, poke out oval exhausts that small children can (probably) poke their heads in. And it’s from these that the noise bellows, of a truly mighty engine – 6.0-litres, twin turbos, 552bhp. It’s colossally fast. At 4.7secs to 60mph, it’s got the pace of an Agbonlahor, yet 195mph all-out gives it the stamina of Ferdinand. Inside, it’s sumptuous – like, you’d imagine, the boardroom was at Highbury. Wood, chrome, leather and Wilton abound, the dials are like

watchfaces, there’s more glinting here than a footballer’s wife and details such as organ-stop air vent controls show the finesse of touch that new Brazilian striker boasts in abundance. Behind the brilliant front seats are two more. Not that they’ll be occupied much. This is a machine for getting to training and getting to the ground. And how does it do it? In total silence, with simply amazing comfort. Footballers drive these because they’re sportsmen, who need to be cosseted after 90 minutes of English warfare. And because it’s more than quiet enough to Bluetooth the orders across for the 3.30 at Epsom. Premiership standards are another league: that’s why the £125k list price isn’t an issue for them, either. It’s a Cult Car in every sense of the word… RICHARD AUCOCK

continental gt

Price: £124,995 Engine: 6.0-litre, W12 Power: 552bhp, 650Nm 0-60mph: 4.7s Max: 195mph Now finance one with Bridford: Option 1: £24,995 deposit, 24 x £629 plus final payment* Option 2: £12,995 deposit, 48 x £1,440 and final payment*

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33 31/7/08 19:11:41

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31/7/08 19:11:42

cult safe cars voice

Advertisement feature

Why you should listen... A revolutionary call recording system is not only improving dealer productivity, but keeping them safe. Here’s why you’ll want it for your dealership...

s a dealer principal it’s hard to keep track of everything that’s happening in your showroom – let alone worry about what sales staff are saying on the phone. However there is a solution – VoiceSafe. It’s an intelligent call recording system and, according to director of the company Paul Cleverly, it can save dealership directors from big trouble. ‘We’ve discovered examples of sales people on the phone describing £30,000 Audis as “a clocker’s dream” while in one group several members of male staff at various outlets were sexually harassing the group sales administrator at the main centre,’ Cleverly told Car Dealer. Call monitoring using VoiceSafe soon revealed these incidents, along with others that, while less disturbing, were still having an affect on dealers’ bottom lines. The system’s ability to display the top numbers called from, or to, each phone at the dealership, whether the top 10, 50 or 100, has proven particularly illuminating. ‘We discovered a business manager in one company was receiving six to seven hours of calls a week from one single number, and when we checked the number out it turned out to be his wife calling – for six to sevenw hours a week he wasn’t working for the company,’ said Cleverly. These may be extreme examples, but the VoiceSafe chief points out that the system has proven very effective in more basic ways, improving the professionalism of the business. ‘We piloted the system with six dealerships and one of the first things we discovered was that 11.7 per cent of their incoming call traffic was not even being answered,’ he explained. ‘They had spent good money on advertising yet they were immediately losing 12 per cent of the generated leads by simply not even talking to them.’ By recording and analysing the call traffic at their centre, dealers have been able to improve the professionalism of their staff and increase productivity. ‘The system cuts the traditional bull-factor that sales departments have long been renowned

Do you know exactly what your staff are saying on the phone? With VoiceSafe you will

VoiceSafe ‘the best thing we’ve done’ LouIse Hill is group training and development manager at Vines Gatwick BMW, and says VoiceSafe is the best thing they’ve done in the past few years. ‘We use it for training purposes, as it encourages people to listen to their own calls. I can listen to newer staff, and offer tips on how they can improve. Often, it’s the small things that make all the

difference,’ she said. Hill also believes it’s good for calling customers back after a lost call – increasingly common as more people become reliant on mobiles. ‘The system both records the call and allows us to retrieve numbers.’ Its speed and user-friendliness here is a boon. Customer discrepancies are an area where VoiceSafe has clear use.

for,’ added Cleverly. ‘Quite quickly 100 outgoing sales calls can be turned into 200.’ VoiceSafe uses an entirely web-based interface, enabling management to listen to calls from anywhere on its network that has an internet browser. Staff response to calls can be monitored and training improved as a result, while the staff themselves can listen to calls they have taken to confirm such aspects as address details and crucially any commitments they might have made to the customer. Cleverly adds that dealers are seeing a whole range of benefits from VoiceSafe, and at surprisingly little cost, particularly if dealers make

Indeed, Hill says the system really has saved the company money here, as information can be quickly clarified. The company had a few teething problems when installing the system, but Paul Cleverly’s response, says Hill, was phenomenal. ‘I would highly recommend them on this basis alone. Indeed, I already have – to one of my neighbours!’

use of yet another feature which allows outgoing calls over a mobile phone network, dialling out via a SIM card and saving the dealer great amounts in call charges. And he thinks analysing the true effectiveness of a dealer sales force is something that is very overdue. ‘Dealers have been monitoring productivity in their workshops for years but the sales department have been getting away with it,’ explained Cleverly. ‘In these days of ever more difficult sales environments the best productivity is ever more essential and VoiceSafe offers a highly effective way to achieve this, at little or no cost to the dealer.’

For more details on what VoiceSafe can do for you

0845 421 5050 | voicesafe.co.uk CarDealer

CarDealerIss6.indd 35

35 31/7/08 19:11:45

motors.co.uk

Rapp Motors.co.uk videos Do video advertisements make selling cars easier?

ith money getting tight and fuel costs rocketing, there has never been a more important time for dealers to ensure they have their stock as visible as possible on advertising portals with good images and spec. Good quality photographs and words are all well and good, but now a video service is also being offered by Motors.co.uk – that’s the nearest a customer can come to driving a vehicle without getting in it. Having selected specific vehicles and ‘Customers viewed them via the have already video link, prospective buyers are far more seen the car likely to close deals quickly when they visit they want. the showroom. When they go Motors.co.uk’s to the showphotography and video experts, Autoexposure room they offer various different are serious packages of video for buyers.’ dealers. Video footage is taken of the cars and then a voice-over is added, complete with details taken from market industry experts CAP. This is then uploaded to Motors.co.uk. Motors.co.uk has so far had a great response from dealers who have signed up to this new service. Helen Rapp, product manager of Motors. co.uk, said: ‘Our new video product has been well received by dealers. ‘With video adverts customers have already seen the car they want to test drive or buy before they visit the dealer, so when they go to the showroom they are serious buyers. ‘This makes it easy for the sales team to convert an enquiry into a sale.’

Who is Helen Rapp? Helen is UK product manager for Motors.co.uk. For details of the new video service you can call 0845 265 5502

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Advertisement feature

Big blue Motors on 4.9m buyers are looking for vehicles online – can UK dealers afford NOT to join Motors.co.uk?

otors.co.uk is ramping up its commitment to helping the UK’s car dealers sell more vehicles with a smart new advertising campaign featuring a 10-foot high blue steering wheel. The eye-catching campaign, which is rolling out across the country during the summer, goes under the banner: ‘You take the wheel’. It’s the result of extensive consumer market research learning what customers really look for when they are buying a car and what their likes and dislikes are when purchasing a car. Katie Armitage, marketing manager at Motors.co.uk (pictured right) said: ‘Our new campaign underlines the Motors.co.uk guiding principle of giving the car buyer reassurance and empowering them with the information and advice they need to get a great deal, under the theme “You Take The Wheel”. ‘It further underpins the important security features, such as free history checks, that we offer at Motors.co.uk.’ The campaign’s timing is perfect with an estimated 4.9m car buyers turning to the worldwide web to find their next vehicle and those dealers who don’t take advantage of the opportunities the internet offers will soon find themselves losing business. Today, the internet plays such an important role for customers searching for a new car. The average car buyer looks at more than six websites as part of their search process before buying a vehicle. Go-ahead sites such as Motors.co.uk are in the driving seat of this buying revolution. With so many buyers using the internet to find their next car, it’s vitally important dealers have their stock displayed with good photographs and on advertising websites such as Motors.co.uk to ensure their vehicles are visible to all those people

‘It further underpins the important security features, such as free history checks, that we offer at Motors.co.uk.’ searching online. In just one year, Motors. co.uk has seen a meteoric rise in its fortunes, so much so that network traffic is now ranked among the top three car portals with Auto Trader and eBay Motors, with the number of visitors to Motors.co.uk increasing every month. The site’s unique search function enables buyers to refine their search spanning make, model, colour and transmission, which means leads are filtered to ensure they are totally relevant to the cars a dealer has in stock. Motors.co.uk offers free history checks to purchasers, checking if vehicles have been previously scrapped, exported or stolen, before they are offered for sale which reassures users and means they are more likely to buy from dealers. To find out more or to advertise your stock on Motors.co.uk, call 0845 265 5502 or email sales@motors.co.uk

CarDealer

31/7/08 19:11:58

CarDealerIss6.indd 37

31/7/08 19:12:05

proton

T N he

ice

Want a franchise without the hassle? Then you should be considering Proton. Consistently a top scorer in dealer surveys, the maker is looking to expand again

roton’s dealer development manager, Simon Parker, is a realistic kinda guy. The attraction of the Proton franchise? ‘It’s probably the easiest franchise out there to run. And that’s not just because we’re all really nice people! It’s because our demands from dealers are realistic.’ And the good news? Proton is looking for more dealers to impart this warm glow upon. All this is music to our ears. After all, how much time and effort can you sometimes

38 CarDealerIss6.indd 38

find yourself putting into the colour of the customer waiting room, or layout of the newspapers? There’s none of that with a Proton franchise. ‘We simply let dealers get on with the business of selling cars and making money,’ says Parker. ‘They don’t have to worry about mystery shoppers or getting the plants just so in the showroom. Our aim is to impose very little ongoing costs on dealers. ‘Our levels of sales is sub-3,000 a year. It’s easy to get carried away with demands if

you’re a manufacturer. But, the person who knows best is the dealer. Makers who are trying to be dealers? The graveyard is littered with them. It’s a different skill.’ The dealers currently signed up clearly like this. If you want evidence of satisfaction, look to Proton’s results in the NFDA survey. Consistently, over the past decade Parker has been with the company, Proton has been in the top handful for fairness and administration of warranties, for parts prices and for technical

CarDealer

31/7/08 19:12:10

uys

training. Field sales and marketing is another strength, and Proton even came top in several categories in 2006. This is, according to the NFDA, easily a top five company for satisfaction. ‘This is not down to sales,’ says Parker, ‘but how we treat our dealers.’ Parker is overseeing the Malaysian maker embark on a major UK dealer recruitment drive. Numbers currently total 77 (with 19 more service and parts outlets), but more are needed and it’s the appeal of the offer which gives Parker confidence that new recruits will be drawn. ‘Overall, we have a really low cost of entry. This is something that can be more than covered in the first year of operation. All we ask

CarDealer

CarDealerIss6.indd 39

is that dealers always hold four cars in stock, that they take an initial parts order of £500, and order some essential special tools. And even here, we can offer additional support on margins in the first year to make doubly sure it’s all covered.’ Proton will sort out frontage signs for you – ‘and this is a substantial £8,000 expense for us’ – and provide all the training you need. ‘All technical training in the first year is free, and there are only two mandatory courses, covering airbags and brakes.’ The company also provides point of sale material, full service and marketing support, a call centre, database marketing – all you need to become a professional-looking franchise

by richard Aucock

dealership. In terms of expenditure by you, the company reckons you can be up and running as a Proton franchise for an investment of less than £8,000 – and this includes all start-up requirements, parts stock, tools and diagnostics. As for technical considerations, Proton runs a helpline. This is manned by an expert team, which dealers can call with any specific issues. The guys on the other end of the phone will run through, step-by-step, the problem, helping the dealer resolve it. Proton’s team know the cars like the back of their hand, and are keen to impart that knowledge on retailer technicians. ‘And if that still doesn’t solve things, we’ll send someone out,’ says Parker. >

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proton

The big question, of course, is how you make money with a Proton dealership. ‘Simple,’ says Parker. ‘You sell cars. On our models, there is up to a £1,000-£1,200 retained margin on offer. The trick to best exploit this? Use all of the services we provide.’ New cars are coming to help here, too. Soon, Proton will be importing a seven-seat large MPV, and there will be a replacement for the Savvy later in 2009 or early 2010. Next year, there will be another mid-range C-segment four-door: this is called Saga, and can be viewed on Proton’s parent website, www.proton.com. (‘But we may well rename it before it arrives in the UK,’ says Parker). Parker also admits Proton is currently restricted through not being able to offer either diesel engines or larger petrol engines. ‘We are looking to acquire a diesel engine, and should have something for 2009.’ Traditionally, Proton has sold mainly to males – 85 per cent of its buyers are men. They’re in the C1/C2/D income bracket, and are generally 55+ (though up to 2004/05, this was 65+). Respectable people from mature housing estates, they’re not poor, and are conservative with a small c. ‘There’s a fair mix of white and blue collar, and they see Proton as offering value – it’s almost an inverse brand statement to them,’ says Parker. ‘They brought into Proton in the late 1980s – and have continued to repeat-purchase. Our database totals 27,000 people who have repeat-purchased – they just keep on coming back. Indeed, up to 2006, 85 per cent of our business was repeat purchase.’

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‘We work well alongside hyundai franchises – compare the Gen2 with the i30: we can do one for £7,000 and the cheapest i30 is £10,500. That’s a big difference.’

These are exceptional figures indeed, and music to the ears of sales staff. ‘It changed in 2006, though. That was when we were on TV for the first time, and that generated a lot of new interest in the brand,’ explains Parker. Proton is gaining increasing conquest business nowadays, from people who have experienced used Protons, and want to sample a new one. The Savvy city car was also a turning point – and this also brought women strongly into the brand for the first time. Nearly half of Savvy buyers are women – and the average age is a much lower 44 years old. And don’t overlook the fact that Proton owns Lotus – and is not only based over at the sports car company’s British base, but also has lots of Lotus engineering in its models.

With the tools and model mix on offer, Parker says it is possible to broaden Proton’s audience. ‘But it’s down to the dealer to work at it, while also crystallising their margins.’ What sort of franchises will Proton consider? Parker admits the brand works best on its own: ‘But we do find we work well alongside Hyundai franchises. Compare the Gen2 with the i30: we can do one for £7,000, whereas the cheapest i30 is £10,500. This is a big difference – indeed, one of the successes we’re currently having is from Hyundai Accent buyers of three or four years ago. They go back to the Hyundai dealer, and are given £500 for their Accent, then asked for £9k to get anywhere near an i30! Proton dramatically cuts that cost to change.’ Parker thinks the credit crunch is a little overegged, but does say there’s been a distinct slowdown. Buyers, he says, are more interested than ever in value for money, and reckons Proton is well placed to take advantage of this prevailing mood. As times get tougher, dealers appreciate more the way they trade. ‘As the market gets depressed, there will still be winners. For our dealers to win, they don’t have to sell a great deal – simply, capitalise on the better value we can offer them. Pre-credit crunch, customers wanted the best. Now, value is their overriding concern. And that’s where we hope to come through.’ Yet more realism: if the franchise is a realistic consideration for you, give him a call.

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Dealers

Green is no longer just a shade of paint – it’s a way of life. But promoting the eco message isn’t just about stocking the right cars, it’s about your dealership too. Here’s how to give your showroom tree-hugging kudos Words: Richard Aucock

reen is the colour Brits are racing to. Never before have we seen such a drive towards environmentally-sound motoring with nearly every car manufacturer offering at lest one ecologically-focused motor. Cars are cleaner than ever, the industry is making unparalleled steps towards saving the world and the future looks bright – and green! But is your dealership up to the same

CarDealer

CarDealerIss6.indd 43

standards as the cars you sell? Hear us out. We know, times are hard. Tougher than they have been for years. But part of going green is about being efficient and ‘eco-ness’ doesn’t just mean saving trees and cutting emissions. It means saving money too, slashing what you spend on running your dealership. As a direct consequence of being ecological, you’re also being economical. So

going green can actually help keep you in the black. But where do you start? Ideally, with knowing what you currently spend on energy, says Andrew Carrington of Go Solar Logic. ‘Your first step should always be to work out what your current carbon footprint is,’ he says. ‘Going green is all about reducing this, so you need a base to work from. It’s crucial you appoint a CO2 Champion >

43 31/7/08 19:12:32

going green

You might be selling eco cars like this Ford Focus, but is your dealership as green? who should spell out a commitment to reduce CO2. There are many ways you can do it, but to achieve the best gains, you need to follow a structured process. If you don’t have a commitment to it in the first place, you won’t realise the reductions you could make.’ So how are these reductions made? Well, that’s the exciting bit. There are endless eco practices and products out there – and the most visible of all are on-site optimisation of renewable sources. Namely, the sun, the wind, rain – via solar panels, windmills and water harvesting. The attraction of these high-vis structures is obvious. Your showroom is full of ‘green’ cars. Why not have an equally prominent green message wowing customers even before they set eyes on the showroom floor? Residents around Dagenham Motors Barking nowadays offer directions according to the huge Perpetual Energy wind turbine that’s been erected there – you can see it from miles around. It also generates 80,000kw a year. That’s 35 tonnes less CO2 (and 10 per cent less spent on electricity). Solar power has potential, too. Electricity generated by photovoltaic (PV) panels means you can generate up to five per cent of your electricity on site. Imagine – a further five per cent off your annual electricity bill. Sure, the up-front investment would be large, but once it’s been made it won’t be decades until you make it all back. And there are also grants available from the Carbon Trust to offset some of it, too – around 10-20 per cent seems to be the going rate, says Jonathan Parker of Wowwow. Carrington explains these silicone panels really do just attach to the roof (he, like all green kit retailers, can recommend installers). Molecular reaction feeds direct current to an inverter, which feeds a/c into the grid. Sounds great… and there’s even means to go further. Chris Aloise is from Mobile Energy-2, which sells a ‘Go Green Kit’, allowing you to make money from the electricity you generate. As in, produce more than you actually use, which you can then ‘sell’ to your electricity company. ‘It’s simple,’ he says. ‘Install the solar panels on your roof, fit one of our fully approved invertors, and plug it into the mains. This means that

44 CarDealerIss6.indd 44

whenever you’re generating more power than you’re using, you can feed it back into the grid – and get paid for doing so. The meter literally spins backwards!’ For every sunny spell when the dealership’s shut, you’ll be quids in… As the kit has full approval, it’s legal for use in the UK, and as Aloise says, it’s a great marketing tool. ‘It’s so new, you can be the first in your area to be ‘solar’ – and, with rebates, we’d envisage the investment cost will eventually pay itself back.’ Aloise suggests hooking the system up to a monitor, for ‘live’ information about how much you’re generating – this would be great to put in the window. We say again, whenever the showroom is closed, it would be earning money for you… The kit is German-made, and has been on the market for more than a decade. And, as it can be used as an educational tool, there’s also the opportunity to hook up with local schools, for great product placement. Canny dealers will put together marketing packs, which parents can get involved with

‘Whenever you’re generating more power than you’re using you can feed it back into the grid – and get paid for doing so.’ too… there are marketing opportunities abound not to mention a guaranteed slot in your local paper! But there are a multitude of other clever marketing tricks. Water harvesting involves collecting the rainwater from the roof, storing it in a tank, filtering it then using it for loo flushing and cleaning cars. How much water you harvest depends on two things, says Bywater, a company that has all manner of water-saving solutions – the size of your roof and the size of the tank you buy. And it’s the perfect way to beat a hosepipe ban – canny marketeers will see a real opportunity here. How about a ‘green car wash’ with every service, for example? Or banners flagging up the

CarDealer

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fact that all those shiny new cars are made so via ecological means? This is especially useful if you switch to ‘eco’ car cleaning products, such as those now offered by Ecover. Of course, if you don’t have to turn on lights in the first place, you’ll make total savings. How about a sun pipe? This is a reflective tube with a solar plastic prism at one end. This bit pokes out your roof, like a skylight, capturing light and flooding it down to an outlet you can install on the showroom floor. They provide a high ‘voltage’ of light just from natural daylight – some are the equivalent of 50-60 halogen bulbs. For around £300 each, they literally are free lighting. They can also work well for windowless offices – areas where, otherwise, lights would literally be burning money whenever the dealership is open. This is much healthier for the staff, too. Imagine the added positive message you could spread here. There are recycled rubber floor tiles, which you can use in service areas and >

FORD’S biggest retail dealer in the UK was borne out of a compulsory purchase order on its old site. The firm saw this as an ideal opportunity to go green and that certainly helped when it came to convincing the local planners. The dealership’s 30m-high wind turbine is its most striking feature, but there is also a central heating system that uses waste engine oil. Perpetual Energy’s 145kw warm air heater means no heating costs for the 14-bay workshop, and no oil disposal costs, either. There’s a rainwater harvesting system as well – holding 18,000 litres (thanks to underground storage), it filters rainwater for car washing and use in the toilets. As water is metered at Barking, the cost savings are clear here, too. The building, pictured left, has been ecologically designed, using the latest insulation, energy-efficient lighting and low energy equipment. The bodyshop ovens are a third more efficient than before, while the showroom glass area lets in so much light no additional lighting is required on sunny days. The eco-friendly dealership has the seal of approval from the highest level. ‘We are seeing a market shift in consumers wanting greener cars,’ said Ford chairman and MD, Roelant de Waard. ‘I am delighted that Ford customers are able to buy their low CO2 vehicles from a dealership that is so environmentally-friendly.’

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31/7/08 19:12:37

going green

Dagenham Motors Barking’s wind turbine, above, has become a local landmark

parts shops, while showroom floors can be decked out in wood from renewable resources. As for furniture, try to source it locally, using RSE-certified wood. A locally-produced wooden desk at the front of the showroom is a great community message and can also lead to possible counter-advertising with other ecological local businesses. If you’re seen to be going green, you can often find advertising streams in areas previously off-bounds. After all, even environmentalists need to drive cars! And when you get into the nitty-gritty of running the dealership, potential green schemes spiral. Of course, you already have access to HPI’s Environmental Report data sheets. Ensuring these are prominently displayed on all used stock, as well as new, will firmly underline your green commitment. LED light tech is probably not there for showrooms yet, but can do for other areas, including

CarDealer

CarDealerIss6.indd 47

‘At the end of the day, saving cash is a direct consequence of saving the environment.’ offices. They are available in all sorts of styles, including downlighters, strip lights and outdoor lights, and consume 80 per cent less power. Naturally, all paper should be both recyclable and recycled. Get your promo material done this way, too – including using vegetable inks. Hunt down an eco-printer – they are out there and can help you with ideas. And have you tried hippos in your loos? They cost pennies and reduce water usage – great if you’re on a meter – and you can also get nozzles that screw on to the ends of taps, limiting water flow. You could even buy a standby buster. This is a centralised remote control: press it at the end of the day, and everything in the building that’s been left on standby will be turned off. Pure genius. Don’t forget, simply leaving an average home entertainment system on standby for a year costs £40. And your showroom is full of them… Then, of course, there’s good

old fashioned tree-planting. That’s something Lifestyle Europe Ltd is doing, for every new car sold to a retail customer. The buyer even gets a certificate in their name when they take delivery – for firm proof that the tree will be absorbing 3,000 tonnes of CO2 during its lifetime, thanks to them buying that car! After all, as HPI points out, for every 6,000 miles the average car travels, it produces its own weight in CO2 emissions… If all this is a bit too much, Carrington advises you employ consultants who can devise a structured CO2 reduction scheme for you. They’ll identify how much power you’re using, how little you could be in the future, and all the tasks you need to do to achieve this. It will cost money, but they’ll identify savings. Because, at the end of the day, saving cash is a direct consequence of saving the environment. The less you use, the less you’ll spend. Do it smart, and the bottom line will reflect this.

47 31/7/08 19:12:39

HOW EFFECTIVE IS YOUR FORECOURT SECURITY?

he price of platinum, a key material in catalytic converters, has risen by 64%* during the last twelve months. This is just one reason why, with the economy slowing, now is the time to review your security arrangements. As Europe’s largest CCTV monitoring company with widespread experience of car dealerships up and down the UK, we know the scams, the attacks, and how best to protect against them. Whether you currently employ security guards, use CCTV or simply lock up and hope, the chances are that Camwatch can improve your security and save you money into the bargain.

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Freephone 0800 294 2826 Email: cars@camwatch.co.uk CarDealerIss6.indd 48

31/7/08 19:12:44

cult cars tried and tested

...That was a good idea, with Autotrade-mail’s Kevin Watson

clever idea reaps rewards E

very month Autotrade-mail’s Kevin Watson recalls those good ideas, hints and tips that can really help you. If you’ve got a good idea that other dealers should know about, get in touch with Kevin using the details below or call him on 0870 2000 848 – he’s offering £100 for the best idea every month!

Wheelie good One dealer has told us they were so poor with car accessories sales that they had to come up with some good ideas to improve the dire situation not only for the sales department profit, but also for the service and parts departments’ profitability. Their ranking within various leagues was not that great and the buying commitment they were under from the manufacturer was beginning to create problems. The dealer had tried all the old chestnuts of buying the alloy wheel stands, dressing up the demonstrators, and giving the salesmen incentives, but none of them seemed to fix the problem. They then took a different approach. When the customer sat down to sign the order form there is normally a sigh of relief at having made the final decision. From then on their anguish changes to excitement at the prospect of visualising themselves in their new car, or picturing it parked on their drive, so this seemed a good time to offer them the shoe shining of the models the dealer sells, but it is staggerpolish tactic. ing that every customer to date has ticked at Between every one of the dealer’s order forms least one item; albeit even if on rare occasions it is a single sheet of paper that they ask the is simply a touch up stick. The dealer’s average customer to have a look at while the salesman accessory sales per unit are now running at more completes the order form for the car. than £200 from less than £50 previously! The opening sentence on the page explains that this is a list of the top 20 most-requested Fun 50 accessories with special prices only available at On the occasional Saturday our dealer principal the point of order. At the foot of the page is a used to pull out of his wallet five crisp £10 notes box where customers are asked to sign to conand give it to the very first sales executive that firm that they have been offered these sold a car on that particular day. It invariably introductory offers. ATO45 Car Dealer Ad 20/2/08 15:21 Page 1 would be Samantha (she seemed to be so much The form simply has six columns, one for each

more alert first thing than anyone else). The £50 was handed over to her but on the understanding that she would have to hand it on to the sales executive that sold the next car and so on. By the close of play whoever had sold the last car on that particular Saturday would retain the cash. The fun that this generated throughout the day coupled with the eagerness to take the money off each other was immense – there was no doubt that we sold more effectively by being motivated to be on our toes and trying to secure the slightest opportunity given.

That was a good idea!

Kevin Watson FIMI is a Director for Autotrade-mail and has worked in Franchised Motor Dealerships for over 30 years.

Run by dealers for dealers Est 1999

CarDealer CarDealerIss6.indd 49

“I am not trying to re-invent the wheel, I cannot give you a simple solution to profitability but it does occur to me that over the years we have all introduced good ideas in our businesses but sometimes stop using them. Why? They are still good ideas! I speak to dealers right across the country on a daily basis and therefore “Car Dealer” magazine has invited me to run a

monthly article to simply remind us of these good ideas. I thought this in itself was a good idea! This is not a profit clinic, nor really a best practice plan. They are not my ideas, simply a monthly page to remind all of us of what we probably used to do anyway! I hope you find it of some value.”

If you want to remind us of a good idea then please contact: kevin@autotrade-mail.com and I will send £100 to the best idea that is published.

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31/7/08 19:12:48

dot cultcom cars

...in association with Really Good Domains

Green revolution is here When buyers are looking for greeners cars the first place they turn is the internet. Here Really Good Domains looks at the eco internet explosion

f you were to rewind back about a year to the spring of 2007 and looked at the number of times internet users searched for the term ‘green cars’ you would see that virtually no-one was looking. Funny thing was, those that did were more likely to be looking for British Racing Green rather than an environmentally friendly motor! But fast forward a year and that picture has significantly changed – green cars and issues, as this edition of Car Dealer highlights, is one of the latest buzz words to sweep the motor industry. And it is one that’s likely to become increasingly more important as the tide moves in favour of leaner, more efficient and cheaper-to-run cars than ever before. High emissions vehicles that gulp down fuel are fast becoming unpopular – but the good news is this new breed of machine is taking their place. But the question is, should this move towards green cars be met with trepidation from dealers or seen as an opportunity? Well, while it’s true the current credit crunch is tightening customer belts, there is a golden opportunity to show these same consumers that substantial running-cost savings can be achieved by considering the switch – lower CO2 emissions, higher mpg, regenerative braking, and alternative fuel sources like the LPG Volvo (pictured) can all help in reducing monthly costs – potentially music to buyers’ ears in the current climate. Websites such as TheGreenCarWebsite.co.uk, run by Really Good Domains, provides a ‘onestop shop’ for all things environmental. ‘Our aim for TheGreenCarWebsite.co.uk was

‘It’s true the credit crunch has seen some tightening of belts, but green cars can offer consumers substantial running-cost savings.’ to bring together hundreds of suppliers that sell and lease new and nearly new green cars – it is unique in that sense,’ explains RGDs chief Dave Timmis. ‘We also felt it was vital to really give the consumer as much information on every aspect of green cars, and in this respect we’ve added a huge amount of information on super-efficient diesels, electric cars, LPG conversions, hybrids, and even hydrogen-fuelled vehicles. ‘People aren’t ditching their cars, they are carefully planning their next purchase and are looking to avoid being stung by higher tax rates and escalating fuel bills and they are using the

internet to aid their decision-making and to look for the best deals on greener alternatives. Equally, increasing numbers of fleet managers are looking to reduce their running costs and to swap expensive-to-run models with a green alternative. In the past 10 months we have seen a 500 per cent increase in traffic.’ Manufacturers are making the move towards greener cars, with some scaling back and even ceasing production on some of their ‘gas-guzzlers’. But dealers could still benefit. ‘Wrongly, some businesses decide to cut back on their advertising budgets in the face of a more difficult trading environment,’ explained Timmis. ‘But if you scale back your advertising you are guaranteeing a downturn in business. There is a thriving, growing market for green cars and for the more astute dealership there are plenty of opportunities to defy the economic downturn.’

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CarDealer CarDealerIss6.indd 51

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51 31/7/08 19:12:53

auctions

Flying the trade-only Flag The Fleet Auction Group has a strict policy for business users which is good news for you!

e all love trade-only services – they’re a key driver to making our businesses work! That’s why the Fleet Auction Group – or Flag as it’s commonly known – is such a breath of fresh air. The company is the UK’s only just-for trade auction centre and has a no-cash sales policy. All buyers have to pre-register their VAT and bank details for verification before even being allowed to bid. It’s strict policies like this that lets Flag really help motor dealers. How? Well for a start it means only bona fide motor traders, dealerships and franchises can attend – and you won’t be competing with the public who drive prices up. Cars are sourced direct from manufacturers, major finance, hire and rental firms and recognised fleet vendors, so quality of stock is high. ‘We are the only vehicle auction and remarketing firm that truly partners the retail motor trade and champions their cause,’ says Flag chief executive officer Andrew Walker. And the Flag boss believes the ‘trade-only’ principle is the only way that vehicle auctions should be operated. ‘Retail customers belong in retail showrooms and on retail forecourts,’ he argues. ‘There are a number of reasons why the general public should be kept out of vehicle auctions. One, professional motor vehicle retailers are those in the best position to meet the specific needs of private buyers, in terms of vehicle sourcing, finance and on-going service. ‘Two, registered trade-only buyers means that vendors have full accountability and on-going traceability for vehicles they remarket, a factor

The Fleet Auction Group is for traders only so you won’t compete with the public for cars that is becoming ever more important as corporate social responsibility headlines boardroom agenda. This in turn means Flag attracts the vendors who tend to take better care of their vehicles and are more concerned with presentation and condition at resale – all of which is good news for dealers. ‘And three, which is related to point two, no-cash/trade-only eliminates an easy money laundering route, something all within the motor industry are keen to work towards.’ A further benefit to dealers lies in the fact that Flag operates a fixed buyers premium system

obviating the need for its trade buyers to continually be calculating the potential true cost of their purchases. Add to all this best practice commercial principles, a state-of-the-art defleeting and remarketing complex in central UK with fully enclosed pre-sale viewing area for 350 vehicles, a quality on-site restaurant, leading edge conference and meeting facilities and 24/7 collection and delivery operation, and you can see why The Fleet Auction Group is such a hot topic among motor dealers around the country. Maybe it’s about time you paid them a visit?

Citroen shifts 128 cars as BCA breaks online record

BCA sold an impressive 128 Citroens

52 CarDealerIss6.indd 52

An impressive 128 cars in a single sale saw a new online record set for BCA’s Live Online system. The impressive tally happened at Citroen’s Super Sale at BCA Bridgewater last month and more than half the cars were sold online to remote bidders. Some 84 buyers registered digitally for the sale, with 76 dealers logging on to take part in the sale. Michael Brown, head of remarketing for Citroen UK, said: ‘This was another remarkable record-breaking result for us, and comes at a time when many in the used arena are experiencing difficult trading conditions.

‘In partnership with BCA, we are seeing the benefits that integrated online sales channels are delivering to buyers and sellers alike.’ BCA Live Online uses web browser technology to deliver live video and real time audio to remote bidders, allowing them to compete with buyers in the auction hall. Screens in the auction hall display online bids, meaning the system is transparent for both sets of buyers. Of the 277 cars entered, an impressive conversion rate of 89 per cent was achieved – generating revenues for the car maker of £1.5m. This was equivalent to 99 per cent of CAP Clean!

CarDealer

31/7/08 19:12:55

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LET US HELP YOU TOO – (023) 9252 2434 CarDealerIss6.indd 53

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31/7/08 19:14:12

products 1. autosafe

Price: £10 Contact: autosafeproducts.co.uk KEEPING you children safe in the car is every parent’s number one priority. But when they reach that difficult age when they need to use an adult’s seatbelt that doesn’t quite fit, you’re in dangerous waters. This clever invention is a simple strap that wraps around the back of rear seats and lowers the point at which the belt pivots. Maker Peter Sesay won backing for his idea on BBC hit show Dragon’s Den from Peter Jones and Duncan Bannatyne.

2. leatherman skeletool

Price: £60 Contact: whitbyandco.co.uk LEATHERMAN make no bones about it – this is a ‘size zero’ multitool! Measuring just 10cms long, it tips the scales at 142g. Goodies include needlenose pliers, wire-cutters, a bit driver, two Phillips and two slotted driver bits, caribiner/bottle opener and a removable pocket clip.

3. laser pressure washer

Price: £90 Contact: lasertools.co.uk CLEANING your car is undoubtedly easier with a pressure washer – but what if you’ve got nowhere to plug it in? This unique unit from Laser solves the power problem by connecting straight to your car’s 12v cigar lighter socket.

4. Nano-tech carpet protector

Price: £8 Contact: turtlewaxeurope.com CARPETS are tough to clean as dirt embeds itself deep in the pile. This new fabric protector from Turtle Wax claims to use Nano technology to keep the material spotless. Special resins and nano-particles are used to create a protective seal, which is said to repel dirt and spills.

5. revolution

Price: £25 Contact: mayhemuk.com NEED a bit of help getting revved up in the morning? Then try this wacky alarm clock that’ll wake you from dreaming about sportscars to the sound of a real-life V8 engine! The Revolution is shaped like a rev counter and has a digital clock display. We think it’s seriously cool...

6. Jellyphish lamp

Price: £80 From: firebox.com IT looks like something out of Dr Who, but the strangely-named Jellyphish is actually a rather cool lamp. Stick on your favourite CD and the lamp will match the colours and intensity of the light to the music. It features processor-controlled digital LED technology that gives the dome a huge array of hues.

7. supertooth

Price: £70 Contact: kondor.co.uk THIS clever Bluetooth handsfree kit says the name of the contact whenever you receive a call. The SuperTooth unit clips on to your sunvisor, so it’s tucked up out of the way, and uses wireless technology to connect to your phone. The first time you hook your mobile up to the kit it downloads your address book so it can recognise calls from your contacts.

CarDealer

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55 31/7/08 19:14:16

recruitment

So why are you recruiting? why else is there a revolving door compared to your other departments or branches? If people keep leaving, you need to review the management structure and uncomfortable as it may be, could it be the case that a manager or senior staff member is the problem? Could it be there is bullying going on and there is no anonymous reporting policy or procedure to deal with it? t might be great news hunting for staff if you Your line manager must be able to pinpoint are expanding your team or replacing a longexactly why there is an issue with holding on to standing member of staff that has moved up good people. If they haven’t got answers then a level – but what if you’re recruiting for the you need to ask more questions! same position all the time? Well, that should tell There are only five main reasons why people you something! leave their jobs: money, working conditions, It’s worth taking an overview of the departprospects, job satisfaction or people environment involved as a whole and see if there is a disproportionate amount of replacements being If you’re always recruiting, is there a problem? ment. What you need to do is observe, question and remain objective. made in the past year or so. It might be worth Once you have found the source, you need to simply asking yourself if the package you provide change it. Now. Too many staff changes reduces find the solution and this may involve bringing morale and wastes time money. You’ll spend on is market competitive. No-one will stay in a job in new methods, incentives or people. You don’t where they are underpaid as this often equals un- an agency, advertising, induction costs and even dervalued. Refilling the role with an experienced the most experienced ‘newbies’ will need time to want your best employees moving to your competitors after all! It really is worth remembering, be shown how to do things your way. person will prove notoriously difficult if the pay ‘No, it’s not the money,’ I hear some of you say. it’s the people that make your business... isn’t what your competitors are offering. Next month… Selecting the right employees ‘We pay above and have more perks.’ Ok, so And the only way to solve this – sadly – is to

Are you looking for new staff? Have you stopped to ask why? Hot Automotive’s Linda Meehan investigates

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31/7/08 19:14:20

recruitment WARNING: TOP CAR JOBS HERE

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www.cardealermagazine.co.uk

Check out our online jobs search engine – it’s updated daily so you won’t tire of it!

To get your jobs in the Car Dealer recruitment section call (023) 9252 2434

58 CarDealerIss6.indd 58

CarDealer

31/7/08 19:14:22

competition

WIN! Gerber Flik multitools I

f you’re anything like us you’ll love your gadgets just as much as fast cars! But while sat nav and Blu Ray players are all very well, there’s still something very satisfying about a good, simple multitool. We’ve tested hundreds of multitools over the past few years and use them for just about everything. Granted, most stay on the desk and are used to open letters and boxes, but a good multitool can be a livesaver in the car too – especially in the event of a breakdown! Stashed in the glovebox and forgotten until an emergency, their raft of tools can make the difference between getting you back on the road or a few hours’ wait for the recovery services (or more if you’re unlucky!). In our experience there are no better models than those made by Gerber. The firm’s new Flik is the latest from the manufacturer and the clever model features a unique way of opening the pliers. You simply squeeze the two buttons on the handles with your thumb and forefinger and with a flick of the wrist the pliers shoot out of

the end. This enables you to open them onehanded, which can make a big difference when you’re juggling parts working on your car. The Flik is superbly made and is packed with other useful functions. As well as those needlenose pliers there are wire cutters, saw, scissors, fine blade, serrated knife, small, medium and crosshead drivers, all hidden in the handles. What we really like is the fact you don’t have to open the Flik to access any of the tools either. All the useful accessories are housed on the outside of the handles and they lock securely in place for safety. It comes in a ballistic nylon sheath, has a lanyard as well as can and bottle openers tucked away too. They cost £54.95, but we have THREE to giveaway to Car Dealer readers. It’s simple to enter. All you have to do is send an email to james@blackballmedia.co.uk with ‘Gerber’ in the subject bar and include your name and address in the main body of the email so we know where to send the prizes. If you’d rather buy one now, log on to www.gerbergear.com or call 01506 406277.

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59 31/7/08 19:14:23

Peering into the lives of the motor trade...

On The spot

Name: Debra Healy Job: Exchange & Mart digital director What’s your mobile phone ring tone? Latino Salsa – I defy anyone not to start tapping or jiggling a little bit!

Name: Debra Healy Age: A woman is the age she looks, which puts me at 32 Lives: Weybridge, Surrey Any family? Twins Oliver and Sophie, aged five, and a very caring husband. What do you drive? Mercedes ML, lots of boot space, and a VW Golf, for getting here and there quickly.

What was the first record you bought? Boom-Town Rats; I Don’t Like Mondays – parents took no notice of the lyrics and promptly sent me to school! What’s your favourite film and the last one you saw? Favourite: Casino Royale – Daniel Craig in swimming trunks – need I say more! Last movie: for the 14th time – Madagascar, the kids love it.

What was your first job? A wedding silver service waitress, get it out hot and quick… I still use this one! What was your first car? At 17, a white Ford Escort that I bid for at auction, I found the whole process exhilarating, there’s clearly a car dealer in me, although I was too poor to fill it with fuel! Who do you work for now? Exchange & Mart, as the digital director. What does this involve? Operating the online business, development of the website, internal systems and investing in our people. Our purpose is to create and deliver efficient and effective advertising solutions that meet or exceed our customers’ expectations. What are your job’s biggest challenges? Growing our audience to keep up with the growing number of dealer customers. Any downsides? Too much opportunity to explore in the time available.

Favourite football team? There is only one team, near the Kings Road… Chelsea. What is the biggest challenge car dealers face? The automotive industry in the UK is constantly changing, with challenging commercial and technological trends as well as new regulations coming into play within the marketplace; car dealers need to keep up-to-date and aware of these development team and finding that bit of good news to share. Home for ments. occasional dinner with the husband then an hour or so at work What would be your number one tip for car on the laptop. Bed by 11.30pm. dealers? Advertise your busiWhat newspapers/magazines ness effectively, get the most do you read? Daily and Sunday for your money and monitor response – know what works Telegraph, CondeNast Traveller best for you. and of course Hello when I’m

‘What’s my motto? laugh – a day without laughter is a day wasted!’ How much do you earn? Just enough to fund a growing family and their hobbies which stretch from camping under the stars to the Monaco Grand Prix. Do you have an average day and how does it pan out? Up at 6.30am, family breakfast and handover to the nanny and then reach for the sat nav as I spend every day in a different location, reviewing projects with team members and suppliers, daily catch up with the manage-

getting the grey covered up! What is the most expensive thing you’ve ever bought? Our house.

And finally... what’s your motto in life and business? Laugh. A day without laughter is a day wasted.

Want to face the Car Dealer questions? It’s not as bad as it sounds. Email james@blackballmedia.co.uk for details

60 CarDealerIss6.indd 60

CarDealer 31/7/08 19:14:25

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31/7/08 19:14:31

The fastest way to make your stock more affordable A full range of motor finance calculations ready to be integrated into your website and vehicle stock. This unique web service also includes electronic proposal forms for a complete online finance solution, virtually out of the box.

- Easy to integrate into your existing web stock module - Calculations available from many of the UK’s leading finance companies - HP, Motor loan, Lease Purchase and PCP quotations based on your chosen sell out price - Proposal forms for all customer types which integrate into your preferred lenders systems - Lucro – Part of the service that gives you access to our unique multi-lender point of sale system - Pre-built solutions from both Codeweavers and our media partners

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31/7/08 19:14:36

used cars

Trading Places

...in association with BeN

Sold! And a bonus too... gone. it didn’t take tim stentiford long to find and shift a Zafira for our BeN challenge and we had a surprise phone call that swelled the coffers too!

nother month, and another success! We’re delighted to announce Tim Stentiford has done sterling work for BEN – by not only sourcing us a really attractive diesel Zafira, but selling it on in super quick time too! ‘It was a really cheap seven-seater,’ admitted Stentiford, who clearly knows exactly what the market wants. ‘We sold it to someone in London.’ And in doing so he helped boost the Car Dealer Trading Places fund to the tune of £300. There are a few issues to sort with the VAT, but it still sees us go forward with a healthy total – £1,550 in fact. Well, that was the total until we got an unexpected phone call out of the blue that further swelled the coffers! On a quiet day just after publication of the last issue, Kevin Griffin of Kevin Griffin Cars in Billingshurst, West Sussex, called in and said he’d been following our progress with interest. And, would you believe, when he took in an old banger of a Rover 416 as a part-ex, he pledged to give us whatever it raised for scrap as an additional boost to the

Tim Stentiford did sterling work shifting a Zafira for a £300 profit and we got a surprise bonus from Kevin Griffin this month too fund. The final amount was £100. annual ladies night in the Sussex Not bad for simply answering the area. I used to take control of telephone – BEN will be pleased! the tombola – the group down ‘I used to do a lot for BEN,’ here has always tried to do its bit. he told us. ‘We used to run an When I saw Car Dealer’s scheme, I

will you take up the baton for BeN? THE plan is simple – raise as much money as possible for automotive industry charity BEN. How? With a motor industry-inspired relay race and your help. Autotrade-mail donated our first car and we aimed to sell it for as much money as possible. Now we’ve just sold our latest machine thanks to Tim Stentiford

and had an added bonus from Kevin Griffin, we’ve got £1,650 to pass on. If you think you can help raise cash for a very worthwhile cause get in touch. Call Car Dealer on 023 9252 2434 or you can email james@blackballmedia.co.uk to find out how you can take up the baton for BEN.

was only too happy to help.’ As we say, a pretty successful month. Can it be followed up next month? Tough times mean we haven’t chosen the best time to press on, but we will nevertheless. First we need someone to take up the baton, then we need them to find just the right car to continue our good work. We’re on a roll with £1,650 in the pot so hopefully there’s someone out there to keep it going – if you’d like to help please get in touch!

It wouldn’t have been possible without...

CarDealer

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63 31/7/08 19:14:39

used cars

Any light at the end of CAP finds market deteriorates further as credit crunch begins to filter down to used traders

ot wanting to pile on the doom and gloom further, but there really does not seem to be any light at the end of the tunnel for the used car trade. As the market deteriorates further, dealers are struggling to even maintain weak sales from month to month, let alone grow their business. The latest edition of Black Book reflects further price falls on used cars for August and a steeper drop than even during the previous two difficult months. The market is continuing to decline, with a more pronounced downward movement in prices than during the previous two months. Close observation of individual models reveals an upswing in interest once they reach a

certain price level, although this varies widely according to the car in question. This means 100 per cent of CAP can be achieved when the vehicle reaches a particular psychological price band. This lends weight to the belief that there is a large element of waiting and seeing occurring among retail buyers who have now absorbed enough news about the downturn to anticipate further price reductions. This belief is also supported by the fact that showroom traffic has not reduced compared with last month, which was itself improved on May. Evidence from recent months suggests that, when they do buy, consumers are tending to move down the price brackets if they are going to purchase at all this summer. This supports other analytical evidence that older cars are losing value more slowly than newer stock. Key to the value of cars at the moment is engine size rather than brand or even body type as buyers seek stronger fuel economy

When will trade see light at end of the tunnel?

        

         

     

  

 

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  

    

CarDealer

31/7/08 19:14:44

...in association with CAP

tunnel? and lower VED bands. CAP remains cautious about short-term prospects, with no real sign of improvement in the foreseeable future. Average conversion rates in the leasing sector were 62.9 per cent in July and the average performance against CAP was 93.2 per cent – the worst for several years. Sales were again reduced on the previous month and dealer sentiment was the lowest since this measure was introduced by the Black Book team. In a bleak market there is, however, one silver lining in that hybrid and bi-fuel vehicles are significantly outperforming every other fuel type. Fuel costs, meanwhile, continue to take a heavy toll on used car sales. This suggestion is supported by dealers, half of whom believe they are losing sales because people are holding back as a direct result of the cost of petrol and diesel. An additional 14 per cent say they believe ‘a lot’ of would-be customers are not buying at the moment, principally for that reason.

CarDealer

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Are cheaper cars the answer to falling sales? RESEARCH among retail used car dealers revealed that 74 per cent found June tougher than May and only 11 per cent believed it was ‘about the same’. An impressive 14 per cent, however, reported improved sales. So what are dealers doing in response to the ever-declining market? According to the latest research by CAP in the retail used car sector, 30 per cent of dealers are now stocking cheaper cars in an attempt to attract financially cautious customers. More worryingly, a further 27 per cent are stocking fewer cars. Another 38 per cent say they have not changed their stock profile at all. This is particularly surprising, in view of the number of dealers who report that their customers are generally seeking cars in lower price brackets this year compared to 2007. Some 30 per cent of dealers say that some of their customers have moved down into a lower price bracket while 33 per cent say ‘a lot’ of their customers are looking to buy cheaper cars.

Used car dealers have reported June saw tougher trading conditions than May However, another 32 per cent of traders suggest that their customers have not changed their preferences in terms of price this year. Without deeper research it is impossible to know what is really going on at forecourt level, but these figures suggest that a large minority of dealers are aware of the need to change their stock profile in terms of price bands but are either unwilling or unable to.w

65 31/7/08 19:14:46

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Sub-Prime Time F

or those of us that worked through the 80s and 90s, there’s a distinct feeling of déjà vu about at the moment. Redundancies are on the increase, house prices are dropping rapidly, and it’s only a question of time before the Bank of England starts to increase base rates. Some analysts are now predicting that car sales will drop to the levels seen in the early 90s, and if you’re old enough to remember working through the 90s you’ll also remember the numerous businesses that went bust. Perhaps you’ll also remember that many dealers took decisive action: cut costs, reduced overheads, changed stock to mirror the needs of a changed market, advertised to a new target audience and focused on maximising additional F&I income. These were the dealers that came through the tough decade intact and ready for the growth that followed it. Perhaps you were even one of them? I’ve mentioned the need for change many times recently and today this need has never been clearer. Some of the big players in the market are already taking action with the likes of Pendragon cutting 500 jobs and restructuring their used car strategy to focus on offering a wider age profile on used cars. For me, it’s just a question of time before other large dealerships follow suit, and each will determine its own set of actions to weather the coming storm for its own markets and for its own niche within the overall market. At First Response we predominately service the small to medium-sized dealer market, and within this marketplace there are numerous factors that have to be taken into consideration in regards to what action can be taken today to ensure success over the coming years. Each dealer has a different local population with different financial abilities and expectations, different local

‘Some of the big players in the market are already taking action, like Pendragon cutting 500 jobs – other large dealerships will follow.’ economic pressures, different stock profiles and sources, different cash flow needs, different levels of customer loyalty and access, different sources of finance, different marketing strategies – you get the picture! While I obviously can’t offer individual advice within the context of this column, I suggest that you talk through the areas where you could make change with your staff and also your local sales representatives. Note down the things that may affect you, and if you weren’t around in the 90s – dig out the old address books and phone some of the guys that were. Ask them what they did, why they did those things and find out what was successful. Note down all the areas that you could change and examine each thoroughly in the context of a hardening market. It’s not going to be easy and if, for instance, you do decide to re-stock you’re likely to experience a reduction in margin in the short term. But, some short-term pain is often necessary for long-term success and sustainability. My feeling of déjà vu is strong at the moment, and I hope that in a year’s time it won’t be strengthened by the same levels of business failure that I saw in the 90s.

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

CarDealer.

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Car Dealer is published Contributors by Blackball Media Ltd (Company No 6473855) Duncan Chappell, Dan printed by WarHarris, Bob Hume, Mike Hind, and ners. All rights reserved. Kevin Watson, Richard Gibbon Conditions of sale and supply include the fact Car Dealer shall not, without our consent, be lent, Simon Evans and Chris Jervis resold, hired out or otherwise disposed of in a mutilated way or in any unauthorised cover by Thanks to... way of trade or affixed to or as any part of a publication or advertising, literary or pictorial matter Justine Hoadley, Tim Marlow, whatsoever. Car Dealer is fully protected Danny Lee, Tim Naylor, Dave by copyright and nothing may be printed Timmis, Bernard McGranaghan wholly or in part without permission.

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0115 946 6370

Many Happy Returns 17% of our business comes from returning customers – and we always encourage people to visit the same dealer for their next vehicle (or point them towards a supporting dealer from our network). To help your business benefit from our many returning customers, join our dealer network by calling 0115 946 6370 today. First Response Finance Limited, Chetwynd Business Park, 5 Regan Way, Chilwell, Nottingham NG9 6RZ

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