Car Dealer Magazine: Issue 7

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CarDealer.

Issue Seven October 2008 www.cardealermagazine.co.uk

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Driving the future of the motor trade

Are you rewarding staff?

Why it’s vital to look after your employees when times are tough

Going For Broker

Why using Jigsaw’s services is win win

The Super Rich

How to get finance for the well-heeled

Road Tested

Elise

GETS THE GO FASTER TREATMENT But will supercharger excite enough buyers?

PORSCHE 911 GT2 – A CULT CAR LEGEND PLUS: Lancer Sportback ■ Ford Kuga ■ WIN: Handsfree kits

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start Issue seven | October 2008

WHEN times are tough, sales low and overheads high it’s easy to forget just how hard the people under you are working. While you’re stressing over bottom lines and sales figures, your team will be facing similar pressures.

Recognising the effort staff are putting in is vital when times are tough – after all these ground-troops are the real key to revitalising your business. So, instead of moaning and groaning about the state of the market, this month we’ve decided to take a look at how you can get the most out of your staff in this turbulent economic climate by rewarding them.

I’m getting a bit cheesed off with the whole credit crunch saga – it’s all a bit depressing isn’t it? And I bet you and your team are fed up too.

So what better way to show your staff how much they mean to you than treating them to a day in a race car, learning how to drift a Caterham or hoist the spinnaker in a yacht on the Solent? As we demonstrate it won’t cost you the earth – and the positive message it’ll

send out to your staff is priceless.

As we all know, sales teams perform at their very best when they’re working to achieve a goal. So why not use these reward programmes as a carrot? Staff will want to sell more to get the treats and you’ll be more than happy to shell out a few quid if your bottom line has benefited as a result. Everyone’s a winner!

Check out our ideas on pages 46-55.

Meanwhile, you might have noticed point of sale finance is enjoying somewhat of a renaissance. The deals out there are so tempting, and often much better value than the high street lenders are offering, that buyers would be fools to miss out. That’s why now is the time to make sure your finance partners are the very best. This month we’ve highlighted two such firms.

Firstly, Bridford – the finance firm to the rich and famous – tells us how it can help dealers get their customers into supercars. The story is in our Agenda slot on pages six and seven.

Secondly, Jigsaw Finance explains how it can offer franchised dealers a profitable income stream without replacing their existing funding

firms. It’s an interesting proposal and one you can check out on pages 41-45.

This month we just had to give our Cult Car not only an extra page in the magazine, but also a place on our cover. I was fortunate enough to be treated to a high speed spin in a GT2 with a racing driver earlier this year and have never been quite so amazed at what a truly sorted supercar can do. The GT2 is without doubt worthy of a place in our Cult Cars hall of fame. You can find out what deputy editor Richard Aucock has to say about it on page 36.

And finally, last month we put a slug on the cover shouting ‘Our biggest issue so far…’ It’s taken us a month to better it again with even more pages for you to enjoy this issue – and during the credit crunch, something this big for nothing surely must put a smile on your face. I truly hope so! Happy selling…

James Baggott, Editor

‘Porsche squeezed more power out of the engine by exploiting “unexplored avenues”. What that means is beyond us, but it sure worked.’ Cult Cars, p36

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ignition Issue seven | October 2008

dashboard 06

Agenda

08

Mini’s M division

10 13 14

Limo drivers’ demands Are you missing profit?

New Ewards judge

16 18 20 22 24

Cat thefts worrying rise Why LPG is booming The Abarth invasion Big Mike heads to France Ewards: Latest entrant

How Bridford funds dreams Why buyers always want more

CAP expert joins our team

41

forecourt 26 31 32 35 36

Lotus elise sc VW touareg r50 ford kuga lancer sportback Cult Cars: 911 gt2

features 41

47 57

Jigsaw finance

What specialist can do for you

reward your staff

Best ways to keep them happy

LCV insight

06

35

New column for commercials

59

DOT COM

60

Auctions

62

Recruitment section

65

ON the spot

67 69 71 72 74

More bang for your buck Why auction fees may be rising PLUS: Hot Automotive column Interview with Affiniti boss

COMPETITION

Win posh Jabra handsfree kits

Gadgets Trading places

The latest dealer picks up our baton

used cars

Tyre kicking epidemic takes hold

don brough

or

Subscribe to

CarDealer.

It’s totally free!

Details, p68

26 CarDealer

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‘The Elise may be 13 years old, but it’s still brilliant, still affordable and at journey’s end you’ll feel like Senna, Hamilton and Raikkonen all rolled into one.’

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agenda

Even the rich and famous want to spread the cost of car ownership – Bridford Group are the experts at finding a deal that suits

DREAMS

A

Mercedes SL 55 AMG. No it’s not, that’s an SL 63 AMG. Oh, and a Ferrari. And an Aston Martin. And a… well, you get the picture. It’s hard to concentrate on what Tim Marlow’s saying, when such blinding motors surround him. But then this is the man who makes owning them that bit more realistic.

And he’s enjoying good business in doing so.

‘People keep asking me how the credit crunch has affected things,’ says Marlow. ‘Well, while it is harder to get some deals done, the guys we deal with are just not affected in the same way.

They have such a high net worth, a few per cent here and there just doesn’t affect them. Dealers are still coming to us with lots of supercar finance needs.’

The only trend Marlow has spotted is the company director or small business owner, keen not to rub his employees’ noses in it, scaling pack for now. Otherwise, the Premiership footballers, the city boys, the high-rollers are still using Bridford to get them into the stuff we all dream about.

Marlow, pictured right, therefore lives in something of an exalted world – but, he says, it’s vital he keeps his feet on the ground. It must be easy to get carried away in the high-rolling lifestyle, but doing so would ruin the sort of service he needs to offer – when you’re dealing with people at this level, service is all.

‘Our usual fare costs well over £70k,’ says Marlow. ‘We provide top-level dealer finance on high-end, specialist cars: our bread and butter is supercars.’ It certainly is a dream job, but Marlow has the professionalism to match. This is a premium world that calls for premium service.

And that includes – rarely for those used to more mainstream finance – speaking to the client direct. Putting together a finance package for a £125k Ferrari is, as you’d perhaps expect, not the work of a moment. Such communications with those taking out the package – and the dealer having the confidence in Marlow calling up the Barclays Player of the Month with their say-so – is crucial, he says. ‘We need to find out exactly what they want, so we can tailor the package to suit,’ adds Marlow.

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The Bridford team are experts at financing the cars most of us only dream of driving This really is bespoke finance, dependent on what the customer wants. If they want a low deposit, a big balloon payment is set up. If they’re a city boy with a big bonus, then they can place a large deposit instead. They can even agree just to pay off the interest for 18 months.

Marlow reveals, perhaps surprisingly, that he rarely needs a huge amount of detail. ‘You don’t have to carry out proof of earnings and such like – simply running a price check on the house they own, or the net worth of the company they run, can be enough to assure lenders.’ Don’t forget, we’re speaking seven-figure sums here. At least.

‘If the assets are there, and someone is putting down a healthy deposit, that’s enough reassurance.’

In the end, though, the success always comes down to the relationship with the dealer. ‘This is crucial. The dealer has to be confident I can speak to their top guys,’ explains Marlow. ‘I’m here to help them sell more cars. We only get paid for the deals we put through, so it’s in all our interests to make sure the deal is right.’

As Marlow rightly points out, you only have to sell a few six-figure motors to make quite a tidy profit.

So if the market is holding up as he says, maybe it’s an extra profit avenue worth investigating? Give Bridford a call on 0844 815 8888.

Cult Cars: Porsche 911 GT2, p36

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‘The guys we deal with just aren’t affected by the credit crunch in the same way.’

CarDealer

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07 5/9/08 09:38:28

dashboard Gold roof the latest for the bling kings

HOW about this for a bit of bling? London-based Alchemist is showing off its latest ‘finishing touch’ at this year’s MPH Show – a 24-carat gold roof!

That’s right. For prices starting at £12,500, customers after the best can cover their car’s roof in the purest gold leaf.

Just in case they have any doubts, each roof is signed, numbered and comes with a certificate of authenticity.

SsangYong gets a slice of Motability MOTABILITY status has been granted to the full range of SsangYong models. This presents dealers with a whole new sales opportunity, says Paul Williams, MD of SsangYong distributor Koelliker UK. ‘Motability accounts for a significant slice of the total car market and our dealers want to support what is a worthwhile and very successful scheme,’ said Williams.

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

MINI can’t build models expensive enough for its customers, Car Dealer has learnt.

That’s why the John Cooper Works brand has been taken in-house by the marque – to develop it into a BMW M-type subdivision.

The manufacturer has told us that customers are crying out for dearer, more bespoke MINIs. The list price of a Cooper S Works is already pretty high, at around £21k, but that’s not too much for many buyers. Some are delighting dealers by speccing up their cars to, in some cases, not far shy of £30,000!

‘The people buying MINIs want a sports car, but with more economy and less CO2,’ a spokesman for the manufacturer explained. ‘We’ve a foot in the door of the premium market.’

The spokesman also reported MINI buyers’ insatiable appetite for accessories. It seems that no matter how expansive the dealer brochures, customers still have a thirst for more.

And what’s even more interesting is the part exchanges MINI dealers are taking in. Many buyers are chopping in expensive sportscars and high-end saloons – even Porsche Cayennes are making an appearance in MINI showroom trade-in corners!

RICHARD AUCOCK

MINIs M division

Manufacturer reveals it can’t make MINIs expensive enough as buyers are crying out for bespoke models

White on cue, a new set of vivid hues!

WHITE used to be the colour to avoid – unless you were buying a police car fleet! In 2007, SEAT sold just 24 white cars, but a year later the story is rather different – so far it’s shipped out 886 in 2008, an incredible sales increase of 3,592 per cent!

Canny SEAT marketing men are taking the credit (well, they would wouldn’t they). At the start of the year, they say they identified white as the ‘next big

thing’. And going on such success, maybe we should be listening to their predictions for the future.

Namely, the bespoke bonkers hues that form part of SEAT’s £550 ‘custom palette’ range.

Vivid Orange is being earmarked for success; as seen here on the Leon Cupra. Then there’s equally intense metallic blue and an alarming Kiwi Green. But we particularly like the idea of Furia Grey – for the ultimate stealth effect!

Supercar club’s price cut IF you want to drive a supercar there’s no better way than with a supercar club. CLUBGT has a range of exotica and has just cut its rates. Membership starts at £2,250 and for a limited time doesn’t include a £500 joining fee. For more details on how the club works see www.clubgt.co.uk.

“I talk to dealers across the UK every day and appreciate how difficult it is at the moment. Perhaps we can help in a small way?”

Laura Cannon

“I sold 4 cars within minutes of placing them, it never ceases to amaze me” FULL DETAILS ON PAGE 30

08 CarDealerIss7.indd 8

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Limo drivers’ demands Richard Aucock discovers chauffeurs can be quite a picky bunch when it comes to their car of choice

Burgess Just checking The winners and losers in a changing used car market

A

t a time when we are all reflecting on the strength of the September plate and wondering if the continuing credit crunch will see 2009 bringing the worst levels of new registrations since the new plates were introduced, I found myself debating the future of used car sales over a beer with the HPI Valuations boys, otherwise known as industry stalwarts, Martin Keighley and Alan Senior who previously took CAP to fame.

They tell me the economic climate is bringing a tide of change, as people not only look to save money in terms of running costs, but invest in cars that will hold their value. Winners will be anything small, economical and with low CO2 ratings. Mmm, well, I could have worked ‘The economic that one out myself.

However, after their second climate is beer, Martin and Alan bringing a tide agreed that their top picks include the Citroen C1/Peu- of change as geot 107/Toyota Aygo, Fiat people look to 500 and Hyundai i10.

No surprises, image con- save money on scious drivers will plump running costs.’ for the Mini, which I am told is a bullet-proof buy as long as you stay away from the high end models. When it comes to medium-sized cars, the boys agreed again that the latest eco-friendly models will win the day.

It is commonly recognised that many drivers have been panicked into downsizing their vehicles in a bid to cut their fuel bills. This is where, embarking on their final beer of the day, the guys failed to agree. A definitive list of undesirables could not be reached but basically, any large petrol engine tops the no-no pile.

We all agreed, as times get tougher, we need to be aware of all the factors that impact on vehicle values.

Although common sense has a lot to do with buying decisions, don’t forget that desirability can also rule the day. You’ll be hearing more from Martin and Alan in future issues of Car Dealer, but let me leave you with their recommended top 10 sound buys: 1. Mini; 2. Citroen C1/Peugeot 107/Toyota Aygo; 3. Fiat 500; 4. Hyundai i10; 5. Audi A3 diesels; 6. BMW 1 Series Efficient Dynamics; 7. Ford Focus diesels; 8. VW Polo; 9. Golf Bluemotion; 10.

Seat Leon 1.9 Ecomotive.

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

10 CarDealerIss7.indd 10

HOW do chauffeurs and high-end limo drivers choose their cars? No, it’s not the start of a poor joke – but a very serious question and one that was answered by BMW on the launch of the new 7-Series recently.

BMW revealed details of its typical 7-Series buyer to Car Dealer when the maker let us drive a pre-production version of the new model. The maker said that, as expected, most 7s are sold to fleet, corporate and business customers – and these guys are actually quite picky!

These buyers look at the price first and foremost. No surprises there, but more interesting was the fact running costs are just as important – including the cost of servicing, tyres, insurance ratings and repairing (inevitable) minor damage, as well as the obvious major consideration of fuel economy.

With all this info, buyers then see what

they like driving most for their budget.

And it’s important not to underestimate this. These guys can spend eight hours a day behind the wheel and in many ways they’re the most demanding, exacting customers you’re ever likely to meet.

‘It’s a very different way of looking at things,’ admitted a BMW spokesman. And volumes in this sector, despite the credit crunch, are predicted to remain pretty level. Despite being luxury cars, they’re just as much of a business tool, and BMW expects to maintain its average of 2,500 sales a year quite comfortably.

The launch of the 7-Series range in the UK won’t include a long-wheelbase diesel model just yet though – it will arrive next March.

‘China and the US take the most longwheelbase models, so they get priority over the UK,’ added the spokesman.

...as 7 Series arrives, BMW reveals X7’s been axed AS one new BMW luxury model arrives – another gets the boot before it even hits showrooms!

The marque’s plans to make a super-luxury rival to the Range Rover have hit the buffers due to the credit crunch.

Chief executive officer Norbert Reithofer has confirmed that plans to develop the X7, a bigger brother to the successful X5 and X3, have been shelved due to deteriorating economic conditions, particularly in the US and Europe.

BMW recently issued a profit warning saying it does not expect to hit its financial targets this year, but Reithofer said the marque

believes 2009 will be a little better.

The company has been particularly badly hit in the US where it has been aggressively targeting sales in recent years by offering discounts and low-cost leases.

BMW says it has reduced the number of cars it planned to sell in North America by 40,000 units, either by selling them elsewhere or by cutting production.

Chief financial officer Michael Ganal explained that if current foreign exchange rates persist, particularly for the dollar and the British pound against the Euro, then 2009 will be a ‘major challenge’ for the company in terms of its impact on earnings.

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&2%% #/ EMISSIONS CERTIFICATE WITH EVERY (0) #HECK (ELPING YOUR CUSTOMERS HELP THE ENVIRONMENT AND SAVE THEMSELVES MONEY AS WELL !S YOU KNOW CLIMATE CHANGE AND ENERGY EF½CIENCY ARE KEY ISSUES OF CONCERN FOR MANY INDUSTRIES AND CONSUMERS 0ROVIDING YOUR BUSINESS AND YOUR CUSTOMERS WITH THE (0) #/ EMISSIONS CERTI½CATE IS OUR WAY OF HELPING YOU DO SOMETHING POSITIVE TOWARDS ADDRESSING THESE ISSUES )T´S A FREE SERVICE THAT ADDS VALUE TO YOUR OWN OFFERING AS YOUR CUSTOMERS ARE GIVEN AN INSIGHT INTO THE ENVIRONMENTAL IMPACT OF THEIR CHOICE OF VEHICLE

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Environmental Information: In addition to the fuel efficiency of a car, driving behaviour as well as other non-technical factors play a role in determining a car’s fuel consumption and CO emissions.

2 CO2 is the main greenhouse gas responsible for global warming.

Registration (VRM): KM05XME Engine Number: BKC618323 Fuel Type: Diesel Engine Capacity (cc): 1900

Make/Model: VOLKSWAGEN GOLF TDI SE Colour: BLUE Transmission: 5 Speed Manual Date of First Registration: 27/07/2005

Carbon dioxide emissions (g/km): Important note: Some specifications of this make/model may have lower CO2 emissions than this.

Check with your dealer.

Vehicle Excise Duty: The CO2 bandings provided are intended as a guide to the emissio ns of this vehicle and equate to the current Vehicle Excise Duty bandings. Older vehicle may use alternative VED / RFL bandings based on emissions or engine size. Please check www.direct.gov.uk/en/motoring for the VED relating to this vehicle

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11:10

Tyred of the credit crunch? Try this!

Continental is warning dealers of failing to offer a tyre-fitting service, as the potential for profit could really make a difference WHEN times are tough the last thing you want is to let potential profit opportunities walk straight out of your door – but that’s exactly what many dealers are doing, says Continental.

Tyres are a superb way for dealers to increase their bottom line, believes the tyre manufacturer, but motor traders are letting fast-fit operations snap up this business.

In the first three years of a car’s life, some 70 per cent of owners visit their franchised dealer for servicing requirements, but many fail to offer customers new rubber.

‘During the first three years of a vehicle’s life, on average three tyres will need changing,’ explained Angus Smith, sales director at Continental.

‘Although a huge percentage of these cars could be in a retailer’s workshop with tyres that need renewing, dealers just aren’t looking out for those that need replacing.

‘Car dealerships are trusted with a high level of confidence in the work done and consumers believe they give good advice.

So dealers should really start advising drivers on the condition of their tyres – trading on their good reputation to do business.’

But what about the perception among motorists that tyres are pricier at a main dealer? Utter rubbish, says Smith. ‘There is a misconception that franchised dealers’

Tew Net gains Video on your site can give you the edge over rivals

W

tyres are more expensive, but our research shows that actually the prices are competitive with fast-fit stations.

‘Dealers should not be shy about giving a price. They should really be saying “whilst doing your service we noticed that the tread on your tyres is approaching the legal limit. This is the price to replace a tyre that matches your existing fitment”.

‘The customer is still free to choose but you have given them the option.’

There are healthy profits to be made from selling tyres and with customers passing through the dealership it makes sense to look at a tyre strategy. Dealers interested in finding out more can contact Continental on 01895 425900 and ask to speak to a member of the car dealer team.

Cayman S Sport ramps up the power IF you thought the Cayman S was fast enough, hold on to your lederhosen because Porsche is pushing up power!

The new limited edition Cayman S Sport smashes the 300bhp barrier and looks absolutely stunning.

Hitting dealers this month, the car will be individually numbered and feature a 3.4-litre flat six powerplant.

Porsche always said the Cayman would never challenge the 911 for power – but as the latest 911 has recently received a power boost, a window has been opened for a faster Cayman.

Porsche hasn’t released performance figures yet, but we’re expecting low-5s to 60mph.

CarDealer

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dashboard

Visually, it’s a feast too, with lots of 911 GT3 RS cues. Orange or green paint is pure GT3 RS, as is model designation in black side graphics. Black extends to the wheels, mirrors and grilles too. Only problem is, just 700 will be available worldwide!

ant to set yourself apart from your rivals, and gain that vital competitive advantage? Then it’s time you started looking into video. Broadband and YouTube have massively increased the potential of the medium – it’s not new technology and doesn’t even have to be expensive.

For you, it means a video of your used car stock, hosted online. This can cost from £6 per car, which really is nothing in terms of marketing spend. And that cost is fixed, whether the car takes a week or two months to sell.

So what exactly can it entail? Well, Auto Exposure is the current leader in the technology side. Those guys can take video footage either shot by you or themselves, ‘Buyers are then use their expensively- after greater developed (and unique) transparency software to self-generate and will a bespoke voiceover. This gives full technical inforappreciate the mation on the car – and novelty factor we’re not taking Stephen of video on your Hawkins-style commentary here. website.’

The voiceover can also be a more general one on what your dealership can offer, such as finance and servicing, with a printed spec sheet of the car alongside the video footage.

Remember, people will travel to buy the right vehicle – but won’t spend time travelling to search for one. I’ve seen stats that say the ratio has dropped from seven visits to one purchase, down to less than two. Therefore, the better ‘show’ you can offer on your website, and the more you can reveal of the car, the more chance you have of making a sale. In a crowded marketplace, buyers are after greater transparency… and will appreciate the novelty factor!

Video can also allow you to show a subjective view. If a car has a big boot, why not show this off? I saw a video of the new Blackberry by one of the magazines. This has a much faster interface – and I could see how fast from the guy’s demonstration on the video. Such subjectivity is a great help to buyers.

If you do offer video though, don’t forget to measure the response. How many are using it, and what are the analytics of those who are? If you have a used stock of 100 cars, consider trying video on 10 of them first.

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 5/9/08 09:38:35

dashboard Broughtons becomes only Zagato dealer in uk

Henstock Auction stations Could estate cars be more socially acceptable than 4x4s?

W

ith the pressure growing on larger-engined 4x4s as well as models with high CO2 emissions, is there an opportunity for the humble estate car to enjoy a renaissance? The estate has never really gained the acceptance with UK motorists that it has in some Continental markets – there’s no real heritage of Grand Tourers and Shooting Brakes in the UK, for example. And, of course, the rise of the mini-MPV has given motorists another set of choices if they want a car that can carry big loads or lots of children.

As a demographic, estate car drivers are a fairly restricted target market – around seven per cent of cars on UK roads are estates, according to BCA’s Used Car Market ‘It may currently Report. However, premium be a niche models are always much market but it’s sought after if they have the right combination of a sizeable one colour and specification, so that could be the demand is out there.

It may be a niche market, worth exploring but it’s a sizeable one that for switched-on could be worth exploring for the switched-on dealer. dealers.’

Work around the lingering perception of the estate as just a working tool, and focus on its flexibility and usefulness as a family car. As always, motorists make their decisions based on price and quality – they buy the best used cars they can afford – so source sensibly priced, well-specified examples in good colours.

BCA’s experience is that estate buyers/owners are often older motorists and they expect a good degree of comfort and specification. Diesel estates are also popular with caravan owners, who need the torque and pulling power as well as the extra space. The Kennel Club crowd are also big fans of estates – walk around the NEC car parks during Crufts for proof of that.

However, the high-spec premium models could be an alternative for well-heeled family buyers as they make a statement and could make a real resurgence with the pressure being experienced in the 4x4 market. And what with used car buyers expecting even more for their money, the estate car could be about to enjoy a purple patch – maybe it’s time to make room for a few on your forecourt.

Auction Directory, p60

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.

14 CarDealerIss7.indd 14

EVER wanted to pick and choose who you sell your cars to? Well, if you’re lucky enough to be a Zagato dealer that’s exactly what happens. But it’s not just the dealer principal that gets the say so – Zagato gets to choose too!

Car Dealer was let in on the amazing practice at the unveiling of Broughtons as the only Zagato ambassador in the UK. The Cheltenham

dealer already represents legendary marques Spyker and Koenigsegg, and has now added Zagato to its range.

The new showroom’s impeccable finish is evidence

of the need for luxury trappings when attracting billionaire buyers. On the night, the Bang & Olufsen salesman was almost as busy as the Broughtons staff.

The hypercar business is one that is relatively untroubled by the credit crunch.

Billionaires don’t seem to have the same financial concerns as normal car buyers.

And that’s certainly good news for Broughtons!

CAP joins our Ewards IF YOU want to tackle the credit crunch you need a cracking website – that’s the opinion of the latest judge to join the Car Dealer Ewards in association with Motors.co.uk.

CAP business development director Peter McCullough is the latest expert to join the judging panel and says the Black Book publisher’s latest research proves his point.

McCullough believes that despite the fact car sales have fallen there is still a huge number of potential buyers using the internet to look for their next car.

‘Now is the time to really examine your website,’ he told Car Dealer. ‘Despite the consumer caution, there is a great deal of evidence that people are still doing a lot of window shopping while they wait for more confident times.

‘Hook them in now, with all the information they need – presented in a smooth and professional way – and they will come back when they are ready to buy.’

McCullough will now use his expertise to help find the best motor trade websites on the internet as Car Dealer looks for the top franchised, independent and car manufacturer sites. The Car Dealer Ewards, in association with Motors.co.uk, are totally free for dealers to enter.

So why else does McCullough think dealers should take time putting a decent website together? ‘Well, the most important factors that affect a buyer’s decision to

As more and more dealers enter inaugural Ewards, CAP joins our judging panel purchase can all be displayed on a comprehensive website,’ says McCullough.

‘CAP research tells us price, running costs, performance and features are all vital statistics for buyers in their decision-making process and a good dealer website will display all this information.

‘Cars are the second most popular product researched online and 38m people now use the web in Britain so it is hardly rocket science that you need to give them exactly what they are looking for.

‘Consumers are ever more hungry for information and they are prepared to hunt around for it. What that means is that if your website isn’t up to scratch in terms of the information it offers you will lose them in the time it takes to click on to someone else’s link.’ Wise words indeed...

Enter our Ewards, p24

The sunny side of solar kits!

RISING energy prices means interest from businesses in self-generated energy is growing, reports Euro-line.

The company which sells solar powered energy generation kits, was featured in our green feature last month. Since then, a dedicated GoSolarKit has been selling well.

The kit incorporates solar

panels, and an inverter creating a ‘Go Solar’ magic box, that converts sunlight into energy that’s fed straight into your mains electrical system. It is also scalable – you can start off small, expanding it to generate more power as needed. Euro-Line’s Chris Aloise explained that with the one Kilowatt GoSolarKit, a firm

can realise a saving of up to £41,000 over 30 years! And as energy prices increase these kits are even more tempting! More details at www.me2solar.com.

CarDealer

5/9/08 09:38:36

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dashboard

Thieves just love cats

Rapp Marketing Happy hunting and fantastic farming in troublesome times

I

n a challenging economic climate being brilliant at the basics has never been more important. This applies as much to the internet as your forecourt. So when it comes to hunting for customers online what should you do? Well, here at Motors.co.uk we’ve given it some thought and come up with our top tips for maximising your web enquiries. Firstly, make sure you’re fishing in a well stocked pond – just like Motors.co.uk! You can then make sure your bait is the very best to attract your ‘fish’ – the price, quality of spec and in particular imagery should be spot on.

Make sure you’ve got multiple photos and the video used is the very best quality. In this game average is only ‘best of the rest’ and we’ve found you’ll get a staggering 20 per cent less enquiries without decent pictures.

Even at this point you can start to farm your leads.

Capturing the customer’s details to maximise conversion is essential and you can do this before the enquiry, during the sales process and then bank up a store of potential leads for the future.

Give customers the chance to sign up to regular stock updates before they enquire with a service like the Carfinder used on many leading sites. This literally glues people to your stock.

Then, when the leads do come through, make sure your team are prepared to be accountable for them, whether that’s via email, telephone or instant messaging. Perhaps now is the time to mystery shop your team to cut down on fees and maximise your profit.

Next, ask all your prospects and customers for their email addresses and get them to opt in to receiving promotional updates. This gives you an extra channel to go at with promotions – and you’ll find this is highly cost effective, particularly when times are hard.

And finally don’t neglect your offline database or dealer management system - you can append this database with email addresses, matching emails on our database with the people on your own database.

‘We’ve found you’ll get a staggering 20 per cent less enquiries without decent pictures on your listings.’

Who is Helen Rapp?

Helen is UK product manager for Motors.co.uk.

For details of the services Motors offer traders you can call 0845 265 5502.

16 CarDealerIss7.indd 16

Rise of scrap metal prices means dealers face new threat CAR dealers are being warned about the worrying rise in catalytic converter thefts.

Police are recommending motor traders take a serious look at their security as soaring scrap metal values make the exhausts a tasty target for thieves.

Cats can be removed in minutes and replacing them can cost hundreds, even thousands, of pounds, especially on high-end cars.

Police are recommending security markings to make it much riskier for unscrupulous scrap dealers and metal reclaimers to take the parts in.

Ford is one maker taking an especially proactive approach – it has decided to work with a security marking company to launch a solution to cat thefts.

Card fraud’s worrying rise THE RMIF is warning dealers about the dangers of card fraud. With some £567bn spent on credit and debit cards in 2007 – the federation says losses topped £535m.

That’s a worrying trend and up by a quarter on 2006!

‘With fraudsters still more than active, the RMIF urges members who have not done so already to upgrade to Chip & PIN to protect themselves,’ said a spokesman.

Retainagroup has launched a simple marking system for cats (pictured below) giving each a unique identity. Every cat casing is marked with a logo, a seven-digit code and a telephone number which allows any thieves caught to be instantly collared.

DC Ian Elliott, of the Metropolitan Police stolen vehicle unit, said: ‘Such a proactive approach by Ford and Retainagroup to something that is heading towards epidemic levels in the UK ought not to go unrecognised. Due to the items being traceable, they are less attractive to thieves because the perpetrators stand a significant risk of being caught and charged.’

Ford dealers are even selling the marking packs now to worried customers for £11.87. Fleet packs for 30 cars are also available for £136.85.

At last, something we can thank the credit crunch for SELLING more cars on finance? Then you’re not alone. Times might be tough, but more buyers than ever are leaving showrooms with finance deals.

In July, exactly half of all new car purchases were bought using POS dealer finance – up from 46 per cent the year before. And it’s the credit crunch that’s driving this.

Increasing attractiveness of dealer finance, coupled with banks clamping down on their lending criteria means the auto industry is becoming more competitive in terms of lending.

Specialist motor financiers can be more flexible in the terms and products they offer because the cash is secured on the car.

The Missing Piece, p41

CarDealer

5/9/08 09:38:39

w w w. m o t o r t r a d e - m a i l . c o m

WE’VE SPENT MONTHS COMING UP WITH AN ALL-NEW SITE - DESIGNED TOTALLY BY YOU! Dealers told us they wanted to trade commercial vehicles, caravans and motorbikes as well as cars on our site - so now you can!

You don’t have to be a geek to use the site - it’s as easy as email and with a TWO WEEK FREE TRIAL there’s no excuse not to have a go.

There’s no better way to get MORE money for your part exchanges.

Check out the site at www.motortrade-mail.com or call us on 020 8800 1118

CarDealerIss7.indd 17

5/9/08 09:38:39

dashboard

LPG booms as prices rise With petrol prices hitting record levels, LPG is enjoying a resurgence LPG is booming – that’s the word coming into the Car Dealer office, from both motor traders and LPG convertors.

One convertor we spoke to has seen a tenfold increase in enquiries, and a quadrupling of sales.

This popularity is being seen on the showroom floor, too – it seems dealers and customers can’t get enough of them.

‘It’s the only thing that’s really shifting,’ one dealer told us. This has been confirmed by BCA which is also seeing this trend at auction.

Alternative-fuel models such as LPG sold, in June, for 115 per cent of CAP clean – compared to the average 92 per cent for diesels, and 90 per cent for petrol.

‘There is a groundswell of inter-

est in alternative-fuelled vehicles, and this is reflected in the strong performance being recorded against guide values – in a market that is otherwise seeing values in decline,’ said BCA’s Tony Gannon.

Fuel prices are the main reason behind the interest. Motorists converting their cars from petrol to LPG can save up to 60 pence per litre, claim Autogas. LPG currently costs 51 per cent less than petrol – and 56 per cent less than diesel.

The Government has also committed to LPG duty until 2018, so it’s going to retain its relative affordability compared to petrol for a while yet. It’s certainly an area dealers should be investigating.

You can either join the rush for the few LPG cars at auctions – or consider converting models yourself, with the help of a specialist. Just make sure there’s an LPG filling station near you first!

RICHARD AUCOCK

Have you noticed an LPG boom?

Buyers worrying about green issues HALF of all motorists say they worry about their car’s environmental impact – and a quarter reckon it will be a factor in choosing their next vehicle.

The results of a study by Experian shows that it’s women who are more worried than men – 65 per cent against 45 per cent. Nearly a third of women will use the environment as a key buying decision.

‘Our research shows that the environment is clearly becoming a bigger concern for car owners. In our opinion, this is more likely to continue to grow rather than diminish – and needs to be factored into the sales process,’ said Kirk Fletcher, boss of Experian’s Automotive division.

‘Dealers need to have environmental information to hand to enhance the possibility of a sale.’

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CarDealer

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To find out more or to advertise your stock call 0845 265 5502 or email sales@motors.co.uk CarDealerIss7.indd 19

You take the wheel ™ 5/9/08 09:38:47

dashboard Fiesta won’t have navi option on list

FORD’S all-new Fiesta will go on sale without a sat nav option, Car Dealer can reveal.

This is in response to market reality, says Ford.

Choosing nav on a £10k supermini can cost up to 15 per cent of the list price – a plain and simple economic no-no.

‘More people own Tom Toms now meaning they simply have no need for factory-fit sat nav,’ said Ford’s Chris Muers.

Masterlease signs Ford repair deal

AUTHORISED Ford repairers have been given a boost with contract hire and leasing specialist Masterlease appointing them to service and repair its models.

That’s business from nearly 7,500 Ford cars and light commercials worth £2.5m. ‘5,000 extra units will now be handled by our authorised repairer network,’ said a spokesman.

Daihatsu dealer will be a Shaw thing!

LINCOLNSHIRE has a new Daihatsu dealer – N. T. Shaw of Louth. One of eight new dealers the importer has signed up this year, it’s part of the brand’s plans to boost its network from 120 to 140. Proprietor Nigel Shaw said: ‘We are delighted to be appointed.’

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

20 CarDealerIss7.indd 20

Abarth invasion

Fiat’s Abarth boss tells Car Dealer how he’s hand-picking dealers across the country GET set for an Abarth invasion! The Fiat performance division is rapidly expanding in the UK with hand-picked dealers taking on the brand.

The UK boss of the specialist arm is Ivan Gibson and he’s told Car Dealer that each wannabe Abarth outlet has been ‘very carefully vetted’. Currently there are 10 across the UK, but by the end of next year Gibson hopes to have doubled that figure.

‘We have 10 in operation now but are well on course to further expand,’ he told us in an exclusive interview during the North Yorkshire press launch of the Grande Punto Abarth.

‘Our dealers are wholeheartedly behind representing this great brand which is much more than just an attractive badge. We are talking about a total rebirth. It is all very exciting and I am proud to be behind the retail, sales

and servicing operation which will focus heavily on the customer satisfaction factor which Fiat has taken under its wing. Abarth is about absolute and discerning representation. We are not about total volume push – we are much more about appeal.’

Fiat hopes some 800 Grande Punto models will find homes in Britain this year and around 1,500 Abarth models in total in 2009. This will be helped by the eagerly-awaited 500 Abarth, a MINI Cooper rival.

Currently, Abarth sites are located in Glasgow, York, Chesterfield, Stoke, Nuneaton, Corby, Aylesford, Romford, Plymouth and Bournemouth. All are at locations with Fiat franchises where UK penetration is currently up by almost two per cent year to date in a declining all-makes market. Some will have Alfa Romeo to hand as well.

Dealers will be subjected to a ‘constant check and double check programme’ to get the very best from the marque. The key words are satisfaction, success, power and passion, adds Gibson. Typical buyers, he told Car Dealer, will be aged 30 into their late 40s, with some user/choosers, but mainly private overall.

‘Fleet will definitely not be a factor but value for money will which is why the Grande Punto Abarth comes in at just £13,500 which is so tempting pricewise for this specialist market,’ adds Gibson. ‘I see the marque as all about tough, spirited cars with a passion for thrills high on an affordable agenda.’

RICHARD GIBBON

Aston Martin release first picture of its new £1m supercar IF you thought a Bugatti Veyron was a bit pricey – look away now.

This is the Aston Martin One-77 and will set buyers back an incredible £1m!

This is the first official image of the new car that will be strictly limited to just 77 models.

The Aston features an all-aluminium chassis clothed completely in carbon fibre. It has a 7.0-litre V12 under the bonnet that can easily top 200mph and propel it to 62mph in 3.5 seconds.

Needless to say, for this sort of money the interior will also be totally bespoke.

Many reckon the super-rich car sector has been pretty much unmoved by the credit crunch, and that billionaires are queuing up to buy the world’s most expensive cars. This should shoot

straight to the top of their lists!

The One-77 has taken many completely by surprise, but some insiders believe it will be officially unveiled at October’s Paris Motor Show.

CarDealer

5/9/08 09:38:59

n

CarDealerIss7.indd 21

5/9/08 09:39:03

the insider

How the French do it...

I

’ve just returned from my annual sojourn to sunnier climes – after all, what’s a pre-loved vehicle merchandiser to do at this time of year, when every car lot throughout the country is reminiscent of the decks of the Marie Celeste, there’s chuff all stock coming through the block and Britain has descended from spring into autumn without the warm bit in between?

My destination of choice this year, as ever, was the south of France, where despite the pound’s weakness against the Euro, a chap can still enjoy red wine and the odd cigar at a fraction of the UK price while watching the sun (that’s the big yellow thing above us that you can occasionally glimpse between showers) setting against a molten sky. Each year I promise I’ll pack up shop and live down there; but then I also promised myself a Lamborghini Miura before I hit 40, and that never materialised either.

But I digress. One of the things that struck me as most unusual about the French way of life is the workings of the country’s used car market – after all, I’ve been pushing tin since I flunked my O-levels, and it’s much more of a way of life than it is a job to a chap like me. Which is why, on my much beloved’s obligatory ‘shopping day’ of the holiday (for which her favourite phrase is: ‘It didn’t cost me anything, I put it on the credit card’) I left her very much to her own devices and went for a wander around the used car ghetto.

Wherever you are, anywhere in the world, you’ll find an area like this, usually at the back of an industrial estate, or underneath a flyover or some equally inadvisable place for property developers to throw up a block of identikit ‘starter homes’.

On this occasion, the used car ghetto was alongside a leather goods processing plant, with lorry loads of dead cows going in one end, and trucks full of handbags and wallets departing the other.

The smell alone would be enough to make you seek a car with velour upholstery, even if you were in the market for a Bentley.

Yet, nestled between the factory’s waste treatment plant at one end and the Hotel Formula One at the other, was a sea of metal as bright and shiny as any row of car lots in the UK – with two notable differ-

22 CarDealerIss7.indd 22

‘The used car ghetto was by a leather goods factory with lorry loads of dead cows going in one end and handbags coming out the other.’ ences. The first is that, to the French, bodywork repairs are something you do with a jig, not a tub of Ispon P30 and a spray gun, and the second was the sheer price of the cars on offer.

Even if you could look beyond the battlescars, cracked bumpers and crumpled wings of the average ‘voiture d’occasion’, some of the prices being charged were phenomenal.

I give you a petrol-engined Citroen Xantia estate of 1999 vintage, 157,000 kilometres (that’s a shade under 100k miles to you and me) and finished in meter-reader’s white by means of an example. The price, 6,500 Euros. In British money, that’s a shade under five grand at the current exchange rate – the last time a 1999 Citroen Xantia was worth that much in the UK, I dare say, was around about the turn of the millennium.

Or how about 14,999 Euros for a 2005 Megane diesel? That’s 10 grand!

In other words, about two thirds of its

cost new. And then there was the really old stuff. Dubious special editions such as the Renault 21 Manager, Citroen BX Cottage, and the tantalisingly tempting Ford Orion Airbag (all legit, look them up!) languishing folornly at the back of the lot. In the UK you’d have weighed the lot of them in, especially given current scrap rates, yet each one of the traffic-battered stinkers had a four figure price sticker.

All of which left me baffled. After all, car prices in France aren’t that much greater than in the UK – indeed, before the pound performed its spectacular nosedive, they were marginally cheaper at the new end of the market – so why the incredible lack of depreciation? Answers on a postcard please, and meanwhile I’ll be shipping the entire contents of pooh corner (the bit of my lot where I store the trade-ins) to France, where I’ll try and convince potential customers that the steering wheel on the right-hand side is purely a cosmetic blemish, caused perhaps by a traffic skirmish...

Who is Big Mike? Well, that would be telling. What we do know is he’s had 30 years in the car trade and picked up some seriously funny tales along the way.

CarDealer

5/9/08 09:39:05

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

CarDealerIss7.indd 23 COS00000_Ssang Dealer Recruit_A4_MV02.indd 1

5/9/08 09:39:05 3/28/08 12:24:31 PM

car dealer ewards

re: Ewards Entry Subject: Independent Dealer URL: hardiecars.com 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

A

ppearing on the first page of Google is absolutely vital if you want customers to find you. If potential buyers drive past your showroom and spot a car they like, there’s a good chance that when they get home they’ll type the name of your site into a search engine and see what comes up.

As Codeweavers boss James Tew points out in his comments in the judging panel below – search engine optimisation can be the difference between making that sale or it wandering off to a rival… and no-one wants that!

Our latest entrant to the Car Dealer Ewards, in association with Motors.co.uk, knows exactly how important it is. Falkirk-based Hardie Cars has placed high importance on appearing in listings when customers hunt for their site.

The family-run business has entered Hardie cars.com for the Independent Website of the Year category. The site represents the firm’s used car centre which runs in conjunction with the company’s three Peugeot dealerships.

‘Hardiecars.com sells all makes and models and therefore has no allegiance to any one manufacturer,’ explained Rachel Hardie, the group’s marketing manager.

‘The site is fresh, easily navigated, uncluttered and always up-to-date in terms of stock and special offers. The name itself is testament to

the importance we have placed on the internet.

All branding is Hardiecars.com not .co.uk even though we have purchased this to redirect to the .com site too.

‘The site is accessible via Yell.com and appears on page one of Google when “Hardie Cars”, “used cars Falkirk” or “Hardie used cars” is searched for.’

The site was produced by Auto Exposure following detailed slides from the Hardie Cars marketing team and the group is very proud of the website.

We asked some of the Ewards judging panel to take a look at the site and they were impressed with the results.

Katie Armitage, marketing manager for Ewards headline sponsor Motors.co.uk, said: ‘I really like the stock lists on this site – they’re clear and simple and the contact details are easy to find. The flash pictures on the homepage are

smart too, but it would be even better if they were the latest offers.’

Hardiecars.com also received praise from the Really Good Domains team. ‘This website provides a strong visual statement and ties in well with Hardie Cars’ showroom branding,’ said Richard Lawton, from RGDs. ‘The site is easy to navigate, stock information is up to date with a good selection of images for each car, and the downloadable PDF option is a nice touch.

‘On a technical level the website scores well in reducing DNS look-ups and avoiding redirects.

Improving visibility of the enquiry form links on the vehicle details page to drive more enquiries, and using integrated Google maps on their loca-

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

24 CarDealerIss7.indd 24

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

5/9/08 09:39:06

....sponsored by Motors.co.uk

Ewards headline sponsor and judge... helen rapp

Motors product manager 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.’

Still time to enter!

I The Hardiecars.com website is a great example of a clear and concise online showroom tion page would help them too.

‘Overall it’s a website that gives the impression of a family-run independent dealer where developing and maintaining a relationship with the customer is the objective.’

Daniel Burgess, director of Automotive at HPI, said it was clear a lot of thought had gone into Hardie Cars’ site.

‘Our own research has told us that buyers definitely favour dealers who can provide a personal service,’ said Burgess. ‘Professionalism is key, but we know that a perception of being small enough to care is what keeps buyers coming back for service and repair, long after the original purchase –

and that’s what we like about this website.

‘While it is clean and concise, easy to navigate and packed full of sexy images of stock, it places a big emphasis on the team.

Featuring the staff welcomes in the prospective buyer even before they’ve entered the showroom and begins to establish a relationship at the earliest opportunity.’

If you think you’ve got a website that rivals Hardiecars.com, there’s still time to get your entry in – to find out how, check out the panel on the right. Every issue we’ll be featuring one of the entrants from the previous month, so the sooner you send in your details the higher the chance your site could be featured here.

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

CarDealerIss7.indd 25

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!

James Tew

Peter Mcullough

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.’

0870 122 2211, cap.co.uk ‘Customers want more information so they are looking for dealers’ websites to tell them everything they need. If all the information they need for every vehicle is on the site, they will not go elsewhere and be potentially distracted. And information does not simply mean technical specifications and options because they also need to understand the entire cost of ownership, which means including finance options too.’

Codeweavers Md

CAP

25 5/9/08 09:39:08

forecourt

26

Power

CarDealerIss7.indd 26

CarDealer 5/9/08 09:39:11

The Elise is getting a bit long in the tooth, so can a supercharger breathe new life into the ageing model? Richard Aucock squeezes in to find out

L

otus Formula 1 made Ayrton Senna a hero by giving him a great chassis powered by a blinding Japanese engine.

The company is now using its 26 UK dealers to offer similar sensations to car buyers, by applying the same philosophy to its road cars. Driver’s car? The Elise SC almost defines the term.

This time, the engine is sourced from Toyota, not Honda. It used to be seen in the Celica. That died, because it couldn’t meet emissions regulations, but thanks to a Lotus-designed ECU, this does. With variable valve timing, the Celica engine put out 189bhp. It still does, in the Elise R, but by bolting on a

C CarDealer

CarDealerIss7.indd 27

whopping great supercharger in the SC, Lotus has ramped the output to 218bhp.

Unfortunately that isn’t a massive increase given the extra complexity, and the torque figure of 211Nm is still very limp.

What makes matters worse is the fact peak power doesn’t arrive until – wait for it – 8,000rpm! It’s here that some will start to have doubts about the validity of the SC. Sure, 60mph in 4.4secs is flippin’ fast, and 150mph is about as quick as I’d ever want to go in an Elise, but shouldn’t it have, well, a bit more ‘go’? Only one thing for it… grab the keys for the SC sitting in the Car Dealer car park and find out.

Crawling inside is still as awkward as ever – the Elise is certainly feeling smaller and smaller as the years pass. >

razy

27 5/9/08 09:39:14

forecourt It’s still great, sitting nearly in the middle of the car, tiny, firm steering wheel perfectly positioned for bent-elbow hands to caress. But the passenger… well, they’re a bit close. The door sill seems to take up half the car’s width and it’s all a bit cosy.

It’s as mechanically intimate too. Wobble the gearlever and the selector forks transmit clonks throughout the aluminium chassis. Firing it up allows you to almost hear the electricity flow to the starter, before a whirr drowns it out. Then an anodyne four-cylinder grumble emerges from behind, sounding as mundane as Lotus cars always have. Will the Evora be the first aurallysatisfying Lotus? We live in hope.

Dear oh dear, I seem to be moaning. And it’s a good job I wrote those grumbles down while I was sat in the car because every single one disappeared the moment I selected first, turned the wheel and pulled away. The Elise is defined by its utterly incredible steering, and even writhing around a car park reminded me how much I must get this system, somehow, into my life.

The feel you have is just incredible. It writhes, tweaks and twitters in your hands – not like, say, a torque-steering Astra VXR, but like a race car.

Indeed, I’ve raced cars on full-bore slicks with less feel than this road-going Elise SC. You are always aware of exactly what is going on underfoot: and, as your only contact with the road is through the tyres, such direct communication with half of them does amazing things to the

confidence you have in the car.

The steering is still heavy when parking, but not over-weighty on the move and don’t confuse heft for feel. There’s a delicacy here that Worrall-Thompson would struggle to create; and although it is deliriously direct and accurate, it’s never nervous. There we go. That’s me sold.

Lotus, I’ll take one of the 220 you plan to shift annually.

Ah, but the rest of it? Well, frankly, it felt little different to a regular Elise. That is, of course, until the throttle met the floor. What should erupt, but the most mighty feral wail from behind me. The supercharger! Like an electrocuted cat getting more brassed off and scrabbly as the realisation dawns, it rose in pitch and threw in extra excitement in spades. This is entirely dependent on throttle position: more noise means more throttle means more go.

As it’s forcing extra air in by being driven from the engine, rather than the exhaust gases it expels, the response is immediate. This is something you really appreciate in gearchanges. Basically, it’s wail – bam – wham. Power is delayed only by the speed of your left hand.

Letting it rev gives out its all, but really, the 860kg Elise is so bantamweight you don’t need such dizzying heights. As there is no lag when you mash the throttle, you can keep it cooking on twisty roads at exceptional speeds without working either it or yourself all that hard.

Yes, you’re kept absolutely in the loop, and the steering, plus the quality of the damping, means it feels like you’re covering roads with the finesse of silk sheets over sexy contoured anatomies (hell-ooo), but the muscle and brainpower called from you isn’t huge.

The Elise has blinding grip and an even more dazzling ability to go round corners with haste and composure. The Yokos never run out of grip, and if somehow you’re brutal and force the rear tyres out, the Sport’s optional traction control reigns it all in with mesmerising finesse.

In short, it’s still brilliant. No, the power isn’t that massive (a Ford Focus ST has more go) – but drive it and you’ll be shown it doesn’t need it.

The Elise may be 13 years old, but it’s still superb.

Still affordable. Still uncommonly economical.

At journey’s end, you’ll be feeling like Senna, Hamilton and Raikkonen all rolled into one. And that’s why it’ll sell.

Lotus Elise Supercharged Price: £32,550 Engine: 1.8-litre, supercharged petrol Power: 218bhp, 211Nm 0-60mph: 4.4s Max: 150mph

‘What should erupt but the most mighty feral wail from behind me – like an electrocuted cat getting more brassed off and scrabbly as the realisation dawns.’

28 CarDealerIss7.indd 28

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5/9/08 09:39:19

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5/9/08 09:39:20

cult cars forecourt

TORQUE SPORT

S

UVs are taking a hammering in the trade, as you no doubt know – when was the last time you had an ounce of interest in some of your more affluent stock?

The situation has changed so quickly it really is alarming, and that’s why we felt a little uneasy taking delivery of the mighty Volkswagen Touareg R50.

This is the ultimate VW off-roader – £61,985 of pure pulling power. R50 points to the capacity of the engine where you’ll find VW’s awe-inspiring V10 TDI diesel, which now produces 345bhp and a massive 850Nm of torque. That’s amazing – it is literally enough to pull a jumbo jet, as VW proved a few months back.

It’s also enough to fire this hulk of heavy metal to 62mph in 6.7 seconds and on to 146mph. On the move, it’s pretty amazing.

Pure force. Sledgehammers and nuts come to mind – though surprisingly, despite its mammoth capacity, the engine is also smooth and sweet plus, dare we say it, even quite tuneful.

This is in direct contrast to how it looks.

With 850Nm of pulling power, the R50 is undeniably powerful, but has interest in 4x4s dwindled too far?

There, it’s out and out attitude, and no mistake. 21inch wheels bulge from beneath wheelarch extensions, a matt chrome grille adds intent and there’s also darkened rear glass, a body-colour rear spoiler, new back bumper and menacing oval tailpipes.

Inside, you’ll struggle to count all the ‘R’ logos.

Suffice to say, the R-branded Nappa leather seats are quite something, and we love the Bentley-style milled aluminium-look dash trim. With a really special set of dials, the R50’s cabin is quite a special place to be.

However, despite computer-controlled suspension, it’s not quite the livewire through corners. There is no getting over this vehicle’s huge kerbweight, and through the bends it feels the heavy machine it is.

Judged in isolation, it’s still a pretty decent performance; it’s just that next to, say, a BMW X6, there’s no denying which is the sportier machine.

The VW also dulls your sensations, in particular through over-assisted steering that’s low on any sort of feedback. It needs lots of twirling in town, too, where the ride from those gigantic wheels also proves irritable. Such is the torque, it’s even possible to get the wheels scrabbling, despite four-wheeldrive. Mind you, you’ll probably rip up the Tarmac if you really do get this hooked up.

What about economy though, the bane of all SUVs? Well, the combined average is 22.4mpg, and CO2 emissions a predictably high 333g/km. But packing such an understressed engine saw us, on a steady motorway cruise, achieve more than 30mpg.

Not bad at all. But would it sway us? Mega though the Touareg is, we’d probably look elsewhere.

Towards, say, BMW’s aforementioned X6. Well over £60k is just a bit too startling for us. Is the R50 all torque? Maybe…

NEXT MONTH

Inspect a dealer gadget

There’s a whole raft of gadgets out there to help dealers strike gold. From computer software to call recording we’ll be looking at how you can use technology to better your business If you’d like to highlight your products to Car Dealer readers call us now on (023) 9252 2434

CarDealer CarDealerIss7.indd 31

31 5/9/08 09:39:23

forecourt Ford Kuga £22,500

Cat’sBetter

R

emember the Maverick? Didn’t think so. Not many people do. The Ford 4x4 was introduced in 1997 and binned not many years after that. Problem was most buyers looking for a mid-sized SUV went for a Freelander instead and that pretty much killed the Ford.

That’s why the maker carried out far more taste tests with this, the cheeky Kuga. It should sell like hot cakes for on-the-shelf appeal alone – there’s no doubt it’s a looker and with Ford undergoing something of a design revolution at the moment, is this the best-looking of the lot?

It is, as you can probably tell, an SUV. A compact SUV, of the soft-roader, CR-V-competing, RAV4challlenging sort. But it’s a damn smart one at that. The muscular toning gives a ready-for-action appearance, while there are bold wheelarches, sculpted sides and an angular face. Some SUVs are boxy and square; this is anything but. Derived from the C-Max compact MPV, it’s roomy too, though the tailgate-in-tailgate is a bit gimmicky.

Ford is only offering two trims – Zetec or Titanium. Both are fairly high-end; no toning things down with Studios and Styles here. They are both absolutely stacked with equipment too; the one main difference is that, in the Zetec, you get blue or orange interior trim detailing within the well-built, funkier-C-Max dash. In the Titanium, it’s more subtle graphite. A difference of £2k is what people will pay to take their choice – Zetec is £20,500, Titanium is £22,500.

It’s even easier with engines – there’s only one.

A completely predictable 134bhp 2.0-litre four-

32 CarDealerIss7.indd 32

After the disaster that was the Maverick, Ford is hoping the Kuga can claw back some 4x4 success

cylinder turbodiesel. Ford will offer a detuned version of the Ford Focus ST’s 2.5-litre five-pot turbo in time, but we can’t see anyone buying it. Diesel is what drives this sector.

And, to be fair, it drives perfectly well, revving smoothly and giving all its 320Nm of torque at 2,000rpm. Acceleration to 60mph in 10.7secs won’t win any records, but it’s perfectly adequate – and there’s even an amusing upshift light for gearchanges.

There is a benefit to this, too: remarkable economy. Efficiency plus a six-speed gearbox yield 44.1mpg combined. This puts it straight to the top of the SUV class for fuel efficiency, while emissions of 169g/km are admirable.

And this is despite Ford including standard

four-wheel-drive. Factor in the Focus-derived underpinnings that we know perform so incredibly well, and you’ve one of the keenest-driving SUVs around. It’s not over-firm but still has real balance and confidence, with the all-wheel-drive allowing you to corner really hard in confidence.

You can even alter the weight of the steering via the dash computer, which is quite amusing. Off-road? It’s immaterial, but we’re sure it won’t bog down in a muddy field.

All told, it’s a class act, and one that’s likely to be much in demand. Ford only having 6-7,000 to sell in the UK this year won’t change that, either. Tasty? You betcha. A Maverick this is not!

RICHARD AUCOCK

CarDealer

5/9/08 09:39:25

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5/9/08 09:39:25

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5/9/08 09:39:29

B F ack

W

e all know of Mitsubishi’s off-roaders and mental Evo performance cars, but regular largish family cars? The Japanese company has not really been a big player in this sector before, despite the obvious mainstream appeal of the high-performance Evo FQs (FQ standing for, well, ‘something’-quick).

Here’s the car the firm hopes will change all that. The Lancer Sportback aims to bring some of the Evo glamour to the five-door hatchback sector, without the running costs. Certainly, on looks alone, it’s got FQ clout, with hints of the Evo up front and a massive wing at the back.

It’s not quite a direct Focus rival though, with dimensions placing it midway between Ford’s hatch and a Mondeo. Indeed, Mitsubishi itself claims the car straddles the gap between the two – but we wonder if prices aren’t likely to confuse here because they’re pretty competitive.

From £14k means it represents a lot of car for the money. Especially as that base car uses a

TO THE

forecourt

uture

Mitsubishi hopes the Lancer Sportback is its ticket to sales success in the hatch market. Richard Aucock checks it out

punchy 141bhp 1.8-litre engine, with MIVEC variable valve timing. It hits 60mph in 9.8 seconds, and is willing enough on the move – there is a noticeable kick over 4,000rpm.

Shame it’s a bit noisy at higher revs.

There is also a 2.0-litre turbodiesel, an engine sourced from Volkswagen, and that low entry price will drop even more, to just £12,499, when a 1.5-litre petrol version arrives, too. Buyers focused on economy may be a bit disappointed by the 1.8’s 36.7mpg average, but the diesel is rather better: it does 47.8mpg and emits 157g/km of CO2.

But does it drive like an Evo? Well, it’s certainly crisp, with fast, accurate steering and

proper composure thanks to expensive multilink rear suspension. GS3-spec and above cars get full sports suspension, enhancing things further, which includes 18-inch wheels and even a strut brace in the engine bay.

Alas, the quality of the interior lags behind the class. Much of the dash is made from cheap plastics that are hard and tinny to the touch. At least it’s well equipped, while there is a decent boot which expands to 1,394 litres with the seats down.

So is it a viable alternative to a Focus or a Golf? Well, it’s certainly different, with plenty of Evo kudos, but it can’t quite match the Focus for overall class honours.

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Lancer Sportback £13,999

CarDealer

CarDealerIss7.indd 35

35 5/9/08 09:39:34

cult cars

PGT2

orsche

The sheer power of the mighty GT2 would earn it a place in our Cult Cars hall of fame alone, but it’s the complete package that really impresses

M

otorsport is a Porsche obsession.

We’re not talking Formula 1 here, either. No, what keeps the Stuttgart engineers busy is racing their beloved 911 road cars by turning them into race track world-beaters. And the very pinnacle of their engineering nous is this – the mighty 911 GT2.

To fans of the pure, delightful GT3 RS, it seems like overkill. Taking the fastest, most powerful 911 – the Turbo – and ramping it up further still. Giving it 200mph ability. Throwing in an eye-watering £131k list price in the process. I have absolutely no problem with that, but strangely some do. Why is hard to fathom, because the result is something quite extraordinary – and very, very special.

Look at it. It’s pure, snarling evil. Aerodynamics dominate, with massive air intakes at the front, more at the side and even more outlets at the rear. The GT2 badge is fitted to a glassfibre engine cover that sits beneath a gigantic fixed wing, and

there’s even a motorsport aero feature at the front: an air outlet has been cut into the front bumper. Why? For excess air to escape, which has the effect of nailing the nose to the ground. The faster you go, the more this thing is pinned to the floor.

Power to the 19-inch 325/30-section rear tyres is a gob-smacking 530bhp at a delirious-sounding 6,500rpm. That’s more even than the mighty Turbo – and good for, ready for it, 62mph in 3.7 seconds. The car even helps you achieve such stunning go with a launch assist system.

And that’s even with a regular six-speed manual, rather than a fancy auto. You do get a helping hand though – clutch down, wind on some revs and when 0.9bar is showing on the dash, simply bang out the pedal as fast as you can. The GT2’s ECU modifies the fuel injection, throws more fuel in to ensure boost pressure doesn’t drop and, simultaneously, it alters the traction control profile, so you get every last ounce of forward motion possible. Who

needs the Turbo’s four-wheel-drive? Not the GT2 that’s for sure. Squeezing more power from the 3.6-litre flat-six wasn’t easy, mind. Porsche did so by exploiting, it says, ‘unexplored avenues’. Quite what that means is beyond us, but it sure worked.

The GT2 has adaptive suspension and stability control as standard, but the latter can be turned off, in two levels. Do so, and it’s 530bhp, your right foot and two rear wheels that dominate proceedings.

It’s rare that you’re afforded such leniency in a car as uber-powerful as this, but if anything’s going to make it safe, it’s the tuning of that chassis. This car has all the 911 hallmarks of traction, agile front end and ballistic turn-in – but ramped up to a level that ensures both you and it can cope with two turbos’ worth of power.

It’s not for everyone. It takes talent to master. But possess this, and it’s pure genius. That’s why the GT2 is worthy of obsession equal to those who created it.

RICHARD AUCOCK

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CarDealer 5/9/08 09:39:48

Porsche GT2

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37 5/9/08 09:39:49

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5/9/08 09:39:50

cult safe cars voice

Advertising 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...

A

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 – Voice Safe.

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 effect 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 seven 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 simply 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

John Clark Motor Group rates VoiceSafe IAN HARRISON, group IT manager of John Clark Motor Group, was tasked with finding a way of recording calls.

He stumbled across VoiceSafe – and was struck with its simplicity and effectiveness.

A few months on, he’s finding the call recording bit is almost of secondary

importance. ‘It’s the stats behind it – the analytics on missed calls, time to transfer and so on. This really helps optimise our call utilisation.’

The sites’ general managers also love it, as it gives them visibility as to what’s happening downstairs.

‘I also plan to give salesmen access to it. They can

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

then use it to, say, review a previous call to a customer before making another one, reminding them of what was discussed.’

There was some resistance at first. ‘People thought it was Big Brother.

You need to handle staff carefully here: all ours are on board now, as they see it’s not a threat, but a tool.’

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 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

CarDealerIss7.indd 39

39 5/9/08 09:39:51

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e

finance

M P

The

issing

iece

Finding a finance partner that slots into your business is crucial. RICHARD AUCOCK investigates exactly what Jigsaw Finance can do for car dealers

Q

uality motor finance partners are becoming increasingly important in the current economic climate. Customers are finding it harder to get money, you’re finding it harder to get money on their behalf and cash is, generally, in short supply.

Well, that’s how it may seem. However, if you have an experienced partner working alongside you, chances are you’ll still be able to get finance for your customers. Experienced opera-

CarDealer

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tors who can do this are going to find themselves increasingly advantaged in being able to make sales others can’t. This is where specialist motor finance houses such as Jigsaw Finance come in. Top dealer groups and franchised retailers normally have several finance partnerships. There’s the manufacturer’s scheme, which will be the first port of call for new car deals, and a fair proportion of used ones, too.

Then, there’s the dealer’s other key inde-

pendent motor finance relationships such as Santander Consumer or Black Horse who will probably provide used car stocking facilities as well. These are core relationships.

But as Jigsaw’s Kurt Bradbury explained, dealers should also consider using a specialist motor finance brokerage to add an extra string to their bow. Jigsaw is one of the key players. So what’s the appeal? Simple. ‘We can provide solutions that the others can’t,’ says Bradbury. >

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finance ‘We’re not there to substitute existing arrangements, but to provide incremental opportunities to dealers.’

‘We’re not looking to substitute the manufacturer’s finance, nor the dealer’s favoured independent motor finance house. The fact is that even with these arrangements in place, it’s impossible for a dealer to deal with every finance company and consequently place every deal.

‘There are more than 20 finance companies out there and, increasingly, dealers are finding customers who don’t meet the criteria of their main providers or situations where the products they do have don’t meet their customers’ needs.’

It is this aspect that is key. Customers who would previously have been absolutely fine for finance are now finding they’ve being refused – simply because lenders have tightened up their underwriting criteria or their product range. In many cases the customer’s situation hasn’t changed at all: they remain in employment and still have the same credit score. But the goalposts they’re aiming for have shifted.

‘We’re not there to substitute existing arrangements, but to provide incremental opportunities,’ explains Bradbury. ‘If you can’t satisfy a particular customer’s requirements, with your core finance products, Jigsaw has a solution. To dealers this means another vehicle sale. I can bring more than 20 extra avenues to the dealers’ existing panel.’

Many of these specialist lenders are actually closed to dealers, anyway. Only organisations such as Jigsaw can gain access to their products, and the extra range they provide.

The catalogue of products Jigsaw offers is extensive. Bradbury has one offer he’s particularly proud of – PCP. Most manufacturers have their own PCPs, and many independents’ products are weak, inflexible or non-existent. What’s more, many manufacturers don’t offer PCPs on cars older than six months! Jigsaw can do them up to four years old – and, instead of the regular three-year period, can offer five-year packages. ‘This is a real strong point,’ adds Bradbury.

It all combines to substantially reduce customer’s monthly payments. As household

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Whether it’s at Jigsaw HQ, above, or out at dealers, right – Jigsaw Finance makes sure dealers get the most out of its financial services budgets tighten, this could generate considerable sales. ‘Monthly payments on PCPs can be up to 40 per cent cheaper than HP schemes – or, the dealer can place customers into a newer, higher spec, more expensive car for the same monthly payment. It’s a very potent proposition,’ explains Bradbury.

Providers such as Jigsaw have a further advantage, too – buying power. ‘A dealer may themselves be able to source these products directly; even a PCP scheme, but they can only give the provider a few deals a month. We can, cumulatively, offer these lenders hundreds of deals a month. Such huge volume at low acquisition cost means we’re able to get lower rates, increasing dealer profits and making it more attractive to customers, too.’

Bradbury shows an example of this buying power by revealing that Jigsaw’s penetration of residual value (RV) products such as PCP and lease purchase is more than 50 per cent.

‘Many finance companies would kill for 50 per cent penetration on these products.’

Additionally, Jigsaw is one of the few that can make such products work for all parties, too. We’re all familiar with some real RV >

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finance ‘We offer the ability to increase sales and make deals happen that otherwise wouldn’t.’

shocks this year. ‘Consequently, some lenders shy away due to the guaranteed future value risk,’ said Bradbury. ‘But for us, the values are not up in the air. Not only do we have the systems to get these products to market, we’ve also got the experience to ensure this works: our guys do it for a living.’

Surely this makes behind-the-scenes operations pretty complicated? ‘Certainly, but that’s our business to sort,’ he says. ‘What keeps us busy is getting the product in front of the dealer, ensuring they don’t have any of the complexity.’

Ample training is provided to further reduce this. Induction training is conducted on site for dealers, followed up by one-on-one desktop training by local account managers.

‘No matter how good your product, it’s worthless if the dealer doesn’t understand it,’ explains Bradbury. In practice, this training covers all bases. ‘We’ll show dealers how to prepare applications, so that the process runs smoothly.

This ensures there are no snags at the payout stage. Investment such as this in the front end quickly pays off.’

Jigsaw has an automated point of sale system, which trained-up dealers can use to provide quotes. That’s for all products, in the showroom, right away. Documents are available online to print out, so the whole process can be set in motion in no time at all.

‘If you can’t get your product out there and in front of customers and dealers, it’s all futile,’ says Bradbury. ‘Talk is cheap. We have the evidence that we do as we promise.’

This is in return for the dealer’s exclusive commitment. Why is this crucial? ‘It takes sales pressures out of the equation. By offering this commitment, we’ll reciprocate, with full support from our guys on the ground who can concentrate on managing the business, rather than selling it to the dealer.’

This commitment to Jigsaw doesn’t come at the expense of any manufacturer and level two financiers, though. Bradbury’s Jigsaw team simply takes up all the extra business that the core lenders don’t want or can’t do – and this extra buying power for them has various advantages. Not least in being able to secure lower finance rates.

‘Sometimes, dealers have informal relationships with local brokers. They’ll offer nibs of business to them here and there. With us, we

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tidy up all those nibbles into one meaningful chunk.’

And not one word about sub-prime. That’s because such finance providers are becoming more and more important for all types of lending. Banks will always err towards spotless credit histories, but there are problems creeping in for more and more people – who even now are far from being labelled as sub-prime.

Banks are currently operating tight lending criteria, some tighter than others.

‘Dealers should see us as their central funding house,’ says Bradbury.

‘In an ideal world, they’d have personnel dedicated to looking at every deal, knowing exactly who to place it with and how to get the best

possible package. In reality, dealers don’t have the time, nor will lenders show the interest because of the low level of the business.

‘Finance houses such as us are, effectively, a dealer’s central funding house. We’re an extension of the business. By augmenting a dealer’s existing arrangements, we offer the ability to increase sales and make deals happen that otherwise wouldn’t.’

And with some considerable success, too.

Jigsaw has been operating since 2000, and growth has largely been through word of mouth. ‘The reasons why are simple – we do as we promise,’ adds Bradbury. Maybe, it’s time you found out what Jigsaw can do for you...

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The Jigsaw Finance team is dedicated to helping dealers – the firm has invested heavily in training its staff to make sure they offer traders the very best service

Sunwin: We’d lose out without Jigsaw on board I

an Beardmore of Sunwin has been using Jigsaw Finance since the start of the year.

‘They’re our third-string financier in the Midlands region,’ he explains. ‘We’ve found their 48-month PCP and lease purchase products have proven particularly popular. They’re ideal for customers with a low-payment need. It matches manufacturer’s low payments, on either new or used models.

‘It’s really helping to sell cars in the current climate.’

More customers are able to be financed, too, explains Beardmore. ‘Jigsaw is finding finance for customers who wouldn’t previously, but may be now, turned down by the main financiers.’

Indeed, this is a key advantage of using a company such as Jigsaw, says Beardmore.

‘Credit search ratings worsen the more times a customer is turned down. Therefore, if we have to try many different providers to find finance, and most turn down the customer, this really hurts their credit score.

‘Jigsaw, however, has the experience and systems to know which financiers will fund that customer, and can go straight to them.’

Beardmore also rates the company’s online proposal system, reckoning it’s one of the keys to the company’s success. ‘It’s easy to use, quick and accurate,’ he says.

‘Certainly, we would lose out if we didn’t have Jigsaw on board in the Midlands region.’

‘Jigsaw finds finance for customers who may have been turned down.’

Pentagon pleased with service

A

lan Smith of Pentagon Group is another senior dealer impressed with Jigsaw. ‘They deal with anything outside our suite of prime financiers, by being able to fit a huge breadth of scenarios,’ he says.

‘Our standard providers are good, of course, but they are also limited. Jigsaw gives us far more tools in the box, to meet the needs of such increasingly varied customer needs.

They’re specialised in a huge breadth of areas that we may not need every day, but do call upon every once in a while.

‘Better still, it’s a one-stop shop. It’s nice to have it all in one place, rather than having to visit six or seven different providers.’

With Pentagon, though, the integration goes much deeper. Jigsaw Finance is used by the company’s chosen internet partner to supply online finance quotes – which, as Smith explains, has transformed how they do things. ‘We always used to struggle selling finance to internet customers, as they’re so well-researched,’ says Smith.

‘We were told by our internet developer that we needed to develop a ‘sticky’ site. Therefore, on the site, we can offer both – which helps massively with retention. Customers are now running quotations for finance on our site.’

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passionate about sailing TEAM BUILDING & EVENTS

Mixing Business with Pleasure Get the full experience even with no experience Charter yachts for races and regattas Great social events that leave an impression Conference facilities in stunning surroundings The ultimate activity for team building Get branded, get noticed WHY NOT JOIN US FOR THE MOTOR TRADE REGATTA - 29TH JUNE 09 Sunsail and Car Dealer Magazine have joined forces to bring you the Motor Trade Regatta. Open to all in the trade providing you with an opportunity to blow the competition out of the water. A fantastic day of yacht sailing, racing and socialising with colleagues and friends, for all abilities.

A great way to reward your top sellers and a superb way to build your team with this fun and challenging day out on the water - test your team skills to the limit.

Learn...Race...Relax Whatever you're looking for we can create it!

Call 0844 463 6518 and quote CARD Email: events@sunsail.com www.sunsail.co.uk/cardealer CarDealerIss7.indd 46

5/9/08 09:40:10

rewards

WAnted: A Happy, Motivated Workforce Answer: Time to invest in a rewards programme...

Finding new staff is expensive and time consuming – far better then to look after the ones you’ve got! Deputy Richard Aucock HUNTS DOWN the best wayS to reward staff

S

taff working hard during such trying times deserve their rewards. People who feel appreciated work harder, achieve more and get better results. All the evidence is there to confirm this.

It’s far better to see rewards as a business expense that will serve to

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improve things rather than an unnecessary expense.

Such rewards are all about geeing up staff and providing motivation.

The current situation in the industry is rather bleak, yet this is a cyclical business. Things will, hopefully, take an upturn in time. In the meantime,

you need to retain the staff you have and make them perform at their absolute peak to help get the business through such lean times.

Expenditure in a reward activity may just, in the long run, make the business far more than it costs.

Question is, where do you start? >

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cater

rewards

1. Tracks the way to do it C

ars are, of course, our lifeblood. So why not take to the track? Because, well, that could end up just being a glorified trackday, and company chiefs will never sanction that would they? No, what’s needed is some structure.

Rockingham Motor Speedway in Corby is not only Europe’s fastest racing circuit, but one of the leaders in corporate packages. The circuit’s Sarah Thomson explained that providing businesses with exciting opportunities is just as important as the on-track action.

The circuit has some of the best facilities around, and conference rooms are available for staff meetings before and after any activities. ‘Driving days like ours can help companies improve business relationships and woo new clients,’ she explained. ‘They’re the perfect way to enhance a company’s status and express the high regard in which they hold

their guests or staff. Our events are designed to keep employees and customers talking.

‘Days can include team building, or simply utilising conference rooms for business meetings or AGMs.’ What better way to draw people to an AGM, than to hold it at a facility like Rockingham?

Certainly, if you want to guarantee a decent attendance, it’s a cracking way to attract people. Everyone always wants a broad cross-section of people at such gatherings, but many will argue the idea of a wet Wednesday in Woking won’t really help drag key associates along. But Ferraris at Rockingham? Just you try and stop them!

Packages start at £369 per person – this centres on head-to-head off-track activities.

Staff can try their hand at Ferrari 360s, rallying, off-roading, auto-tests, wet-track drifting and a pit stop challenge. Good for friendly

inter-team competition – especially as, says Thomson, team leaders are well versed in fostering the right spirit of competition.

For £1,999 per person, Rockingham offers the Ultimate Driving Day. This really is something: just like in a real race, there are no pace cars on track, keeping speeds down. It’s up to participants to show they can handle progressively faster cars as they move from road cars, to F3 racers, to… a real Formula 1 racer! And if driving an F1 car isn’t something to wow participants, we don’t know what is…

All this can be packaged up into a bespoke day. Thomson says Rockingham does not demand companies follow a menu structure if they have specific needs: ‘We can also offer trackside branding opportunities around the circuit.’ This really would be impressive – your company logo on a crash barrier, just like you see on the TV in F1. >

‘Driving days can help companies improve business relationships and woo new clients.They’re the perfect way to enhance a company’s status.’

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cater_CDX_CorpAD_FIN2

3/9/08

2:29 pm

Page 1

DRIVE EXPERIENCE

A sideways approach to saying...

“thank you”

Finding a new way of saying “thank you” is always difficult. The Caterham Drive Experience Corporate Hospitality events are the ideal way to reward your best clients, most reliable suppliers or long suffering staff. After all, how could you possibly expect anyone to enjoy a so-called “fun day out” that doesn’t involve the use of a Caterham 7, tyre smoke and daft amounts of opposite lock?!

So, whatever your business and whoever you want to thank, we have the solution: The Caterham Drive Experience – like corporate hospitality, but more fun. � Events run across the country at a number of locations � Days can be tailored to suit any bespoke requirements � Suitable for anyone with a driving licence and a sense of humour � Plenty of driving time in a relaxed environment, leaving time to chat, laugh and build relationships with your guests and them with each other � DVD’s, T-shirts and other goodies are available to add on to your day � Breakfast, lunch and refreshments can be tailored to your requirements.

For more information or to view a video of the Caterham Drive Experience in action please visit www.caterham.co.uk T: 01883 333700

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E: CDX@caterham.co.uk

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rewards 2. Catch our drift...

CARS can be sampled in other ways, too. ‘It’s great to see how people get on without the pressures of work,’ says Caterham’s Andy Noble. ‘The pressures of work mean people can often snap at each other. Take away that pressure, if just for a day, and it’s wonderful to see how people get on.’

That’s why, of the 160 days the Caterham Drift Experience run every year, more than half are corporate days. ‘There’s nothing like getting bums on seats. We’re wise enough to know that people can’t understand a Caterham without driving it,’ says Noble.

Particularly as Caterham operates a ‘roots’ day. ‘We’re not into silver service and fourcourse meals here. Driving is what people want, so we get them into cars – but don’t spend big on food and helicopters. A buffet, biscuits, tea and coffee… and loads of time in the cars. That’s how 20 people can be entertained on a Caterham day for £5k, rather than £25k.’

Caterham events include a slalom, which challenges drivers to weave between cones as fast as they can. ‘Great for inter-group challenges.’ Then there’s the drift school, which is more instructive, and is all about getting the back end out – and keeping it out. From the activities available, you can decide what you’d like people to get from the day. What better way to sort out that inter-office dispute, than to have a face-off in a Caterham?

And the Caterham Experience is an even more detailed one-on-one experience around a racetrack, a proper individual reward; Caterham tours the country with its roadshow, taking in Silverstone, Brands Hatch, Oulton Park and many others. Three people are assigned to a car, with 20-minute runs. Over a whole day, that’s a lot of time in the car.

‘With our corporate customers, we sit down and discuss exactly what they want, then tailor a package to suit,’ explains Noble.

‘The typical corporate package costs £175 a head, which is a lot less than some of our competitors charge.’

And you don’t need to take huge groups, either. Incentives for two or three people can be catered for on one of Caterham’s mixed corporate days.

3. A mini adventure

if your idea of a team-building reward involves getting out, down and dirty, there are plenty of options, too. Dave Firth runs Adventure 21, an outdoor pursuits and adventure company.

Team building is a key aspect here, explains Firth. ‘We try to make people relax, have fun – but not take them too far out of their comfort zone,’ he says.

This is important: remember it must be a reward for all. Being thrown into whitewater rafting is probably not the stuff of dreams for the quiet admin person upstairs.

Good companies such as Adventure 21 will appreciate this, and ensure all are catered

50 CarDealerIss7.indd 50

Caterham’s corporate days offer maximum drive time for little cash for. Don’t let your thrills take precedence over others!

Firth touches upon a familiar theme too.

‘We don’t sell a standard package – we want people to get the most out of their time with us, help company staff progress. Some people will be more suited to some things than others – we try to get it right for everyone.’

As for accommodation, companies can choose from camping outdoors, to five-star hotels, and anything in between...

4. Life on the ocean waves

If you’re keen on something completely different, how about trying a lifestyle only high-rollers can normally lead? A slice of the jet-set that will both build teams and give everyone a day out to remember? Yes, we’re talking yachting.

Sunsail are a hospitality, team building and corporate events specialist based in Port Solent, Portsmouth. They have a dedicated corporate hospitality team, who offer programmes of the very highest order. For prices that may just amaze you.

You can hire a yacht for the day – not just any yacht, either, but a Sunsail Sunfast 37; and it’s pretty flash. Bacon rolls greet you and your guests in the morning at Portsmouth Harbour Yacht Club, before Sunsail shows you the ropes (literally, of course) and you set sail towards the Isle of Wight. Lunch will be taken anchored off the Isle – before you and your team take charge of the boat and sail it back to base!

A team-building event like no other, we’re sure you agree. And the price? From £995 per yacht, plus VAT. Yes, really – per yacht, not per person. The company even offers overnight events, where you sleep on the yacht, for £1,270 plus VAT. ‘Individuals get a real sense of achievement from the day,’ says Sunsail’s Fiona Rigby.

‘They develop confidence from learning a new skill – and companies benefit from the relationship-building that this encourages.’ >

Taking to the high seas with your staff isn’t as costly as you’d imagine

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5. Rub shoulders with the rich and famous at Cowes Week...

C

owes week is a world famous event held in the Solent. In fact it’s the world’s longest-running annual regatta, dating back to 1826. This year, nearly 1,000 entries raced for a week around the Isle of Wight, with people flocking from across the globe to watch events.

It’s even a staple of the ‘social calendar’ – every year, it comes after Glorious Goodwood, from the first Saturday after the last Tuesday in July, until the following Saturday. It’s one of THE events to be seen at – and you and your team can take part!

This really would be a reward like no other – hiring a yacht for the week, in which you can do as you want, including actually race it in a Cowes Week event.

Up to eight people can be catered for from lunchtime Friday to lunch the following Saturday, on board a Sunfast 37 yacht, which are among the best on the seas.

Hang on, you’re thinking. Not so fast.

How much, before you indulge me? Well, this is the most incredible part! Sunsail will hire you a yacht for the all-in sum of… £8,500 for the week!

That’s for the yacht, not per person, and includes VAT, race entry fees, overnight marina berths in Cowes (the heart of the action), full support – pretty much everything.

It could be one of the best, most productive reward programmes you’ve ever run. Just think how hard your sales staff would work with a Cowes Week treat to look forward to in the back of their minds!

Sunsail offers you the opportunity to go the extra mile with corporate branding, too, while you can even be a title sponsor of a day’s racing by hosting one of the evening drinks receptions.

We’re talking a super-slick, professional week of events here, which would absolutely blow away your best customers or highest-performing staff.

‘We get a real range of individuals on our corporate events,’ says Sunsail’s Fiona Rigby. ‘From big blue-chip organisations to small, family-run companies. Our sailing events ensure that all participants have an exhilarating and challenging day, but equally, the events are not intimidating and are open to everyone.

The day itself can be tailored to the party’s needs, too.’

‘Just think how hard sales staff would work with Cowes Week to look forward to.’

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The complete and exciting solution for all your reward and recognition needs

GIFTS

EXPERIENCES

EVENTS

So much more than the best experiences Amazing experiences, gifts and events Tailor made solutions to suit your business First class customer service, handling the entire booking journey

Dedicated account management No management fees For all other benefits, please contact: 0845 600 7610 mike.bartlett@redletterdays.co.uk www.redletterdays.co.uk/corporate

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rewards

6. Points really do mean prizes

M

ike Bartlett is Red Letter Days’ automotive expert, handling corporate clients and ensuring they can offer staff something to get excited about. He is well versed in the importance of reward schemes, too.

‘It’s vital staff get behind them – the emotional buy-in is crucial.’ Bartlett explains they’ve carried out lots of research on how best to incentivise staff. ‘When we ask them, 99 per cent say more cash,’ he explains. ‘But, when you look into it, from where does motivation come? It’s rarely money. For smaller bonuses, which is likely to have more effect – £20 cash or £20 in vouchers?

The perceived value of vouchers is much higher.’

Rewards, you see, don’t have to be big one-off events or activities and needn’t necessarily cost a fortune. You can work them into day-to-day jobs and achievements, too.

‘You can buy a DVD player for £20, reward it to a staff member, and they’ll take a positive link to your business with it. People will visit, ask where their new DVD player came from – “I got it for hitting a monthly sales target” will be the reply

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– this is really positive stuff.’

That’s why Red Letter Days, which we know for its famous experiences events, has started to specialise in the corporate world, too.

‘This side is different, it’s a lot more tangible – electronics and jewellery. And it’s through this change in focus that we developed our online incentive system,’ said Bartlett.

Red Letter Days offer dealers the ability to brand a computer-based rewards system, via Red Letter Rewards. Here, points can be awarded to staff members, who can track their points total on their PCs. These points can be redeemed against a catalogue of goods – from toasters to trinkets to TVs. It’s a bit like an online bank account – points balance is shown, along with a leader board function (great for inter-staff competition).

So how do staff use them? Well, they buy products from an online catalogue, all of which are priced in ‘points’ value. Red Letter Rewards recently sent out its first plasma-screen TV to someone who had responded to his company’s

‘It’s a bit like an online bank account with a leader board function built in.’ call to increase sales of GAP insurance, paintwork protection and such like. For each warranty he sold, he was awarded points – so, for nine months, he drove all these products with customers. And now he’s enjoying a new TV! It’s a real positive bond and the company gets a healthy boost in profits: – everyone’s happy.

‘The cost is simply in buying the points from us, which can be pre-ordered or done on an ongoing basis,’ explained Bartlett. >

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Love2choose aims to offer the ultimate in choice and flexibility.

The love2choose pre-paid gift card means you don’t have to make the choice of reward in advance for your recipients. They can make this decision in their own time, enhancing the reward experience.

Love2choose – One card, a world of choice • Offers access to a superb range of vouchers including our own Love2shop multi-option gift voucher, Marks & Spencer, Argos, John Lewis, Debenhams and many more • Discounts available for larger requirements • No additional service or fulfilment fees • Personalised branding of cards, wallets and redemption site • Innovative reward delivery options utilising sms and email

To find out more about Love2choose, visit www.love2reward.co.uk or call us on 0845 313 0341.

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rewards

7. reward long service

If action is your thing, Adventure 21 has something to suit. See page 50 for details

R

obbie Davies at Love2reward offers another idea – long-service awards. ‘It may seem like an unfashionable subject, but the reality is that many employees still clock up long-service with a single employer. Long-service awards are a good way to recognise this loyalty, and letting staff know their commitment over many years has been valued.’

Things have come a long way since the dreaded carriage clock. Staff now look for a far wider reward option to choose from – hence the emergence of multi-option gift vouchers such as those offered by Love2reward.

Cash is seen as unimaginative and isn’t considered by employees to be as ‘valuable’. There are also tax implications – ‘Non-cash gifts take advantage of Inland Revenue exemptions,’ explains Davies. ‘Providing there is at least 10 years between awards, employers are allowed to reward staff with at least 20 years’ service with tangible gifts, worth up to £50 in value for each year of service, tax-free.’

They’ll get further incentives along the way from the company’s incentive system. Here, staff build up points online using a virtual incentive points system.

The VIP scheme again rewards both gifts and experiences, to all levels. Efforts have been made to ensure that even smaller tallies of points can be redeemed with plenty of choice.

And have you considered rewarding customers? Davies says the company offers a service called Love2saythankyou – which arranges delivery of gifts such as flowers and champagne.

‘This can be an ideal proposition for car dealers who may want to send a bouquet of flowers to customers who have just purchased a car from them.’

What’s more, it can also be used for disaster recovery. ‘From a customer service recovery perspective, a box of chocolates accompanied by a letter of apology can go a long way to retaining a dissatisfied customer.’ Bad customer service is regrettable – but by being creative you can help you turn a negative into a positive.

‘Long service rewards are a good way to recognise loyalty and let staff know they are appreciated.’

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55 5/9/08 09:40:32

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5/9/08 09:40:33

...in association with Vansunited.co.uk

cars LCVcult insight

how to boost van sales When times are tough it’s vital to take a fresh look at your business and work out the best ways to get more potential customers looking at your stock

F

or every person who tells you that sales of LCVs are increasing, another will tell you the opposite. So, in a time of economic instability, focusing on how the credit crunch can benefit your business is the key to future growth.

The fact of the matter is that 80 per cent of buyers search for their next vehicle online, and while they might not be searching for the latest models, ultimately people are still searching for vans. That’s why it’s so important to maintain the right price for your top vehicles.

Think positive – feedback from Vansunited. co.uk advertisers reveals that selling vans has become increasingly difficult. For example, the construction industry slowdown has impacted on van sales to builders. So it’s important to focus on using this information as a way to challenge your product.

You need to maximise your enquiries too.

Pick your most popular vans and price them deliberately cheap to help generate enquiries.

For example, if you have three different VW Caddy models to sell, like the one pictured, why not price one cheaper to gain more interest from buyers? But make sure your sales team are ready to handle and respond to an influx of phone enquiries and emails immediately.

Keep customers one step ahead by taking advantage of the Chat to Dealer instant messaging service offered by Vansunited.co.uk which stimulates online leads from your vehicle listing direct to your sales executive’s PC. By micro-managing sales enquiries, Vansunited.co.uk aims to generate the best outcome possible for clients – response generation that culminates in quality sales leads.

CarDealer

CarDealerIss7.indd 57

‘Pick your most popular vans and price them deliberately cheap to help generate sales enquiries.’

crunch. Volume has remained constant so this presents an opportunity to buy vehicles cheaply, and if you sell at the right price you can still make money.

And by advertising your stock on reliable traffic portals such as Vansunited.co.uk, your stock will automatically be displayed on a host of addiGoing back to basics can help too. Study your tional sites too like Vansbymail.co.uk, Transitsby vehicle stock advertising closely and ask yourself mail.co.uk, Vanweb.co.uk, Contacthireweb.co.uk, the following questions: Have your vans got reg- Carsource.co.uk and Teletextcars.co.uk. Good istrations for CAP red book /Glass’s Guide look-up descriptions and photography, and better still, on advertising sites? Are you actively updating video, will also guarantee quicker sales. advertised vehicles’ pricing? How much detail are And finally, prepare your staff for the calls. you giving in terms of the spec on your vans? All Make sure your teams are briefed properly and these questions are key. are ready to handle enquiries quickly and efBusinesses that don’t turn stock around quickly ficiently. Vansunited.co.uk has more than 3,000 enough will end up having to trade out what vans for sale and generates more than 95,000 are probably good retail vehicles in the credit visitors per month. Call 0845 265 5510 for details.

57 5/9/08 09:40:34

13th November 2008 Where will your business be?

ATE R R E BOOK ER 10th Y L R A B E OCTO L I T UN

In Association with

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CarDealerIss7.indd 58

5/9/08 09:40:35

dot cultcom cars

...in association with Really Good Domains

More bang for your buck Advertising survey reveals consumers’ staggering switch to the internet is growing at a remarkable pace – but how can dealers tap into this?

T

he second Institute of Practitioners in Advertising Touch Points survey results were released at the start of July, revealing some very interesting insights into consumer media consumption behaviour, in what was the most ambitious piece of media research undertaken for a generation.

During late 2007 and early 2008, the institute surveyed 5,400 adults through a substantial questionnaire. Interestingly, the guinea pigs also kept a PDA-based diary to record their daily media intake over the course of a week.

The findings were varied and widespread from its coverage of digital media, their moods, and retail activity. When looking at media consumption the headlines were as follows: as expected television is still the medium the average adult consumes the most of with 24 per cent of their waking time spent passively watching it. However, more surprising was the news that in homes that had internet access 10 per cent of waking time was spent using it.

The penetration of the web in all adults has now hit 73 per cent, a figure predicted to further grow. In absolute terms, the average adult spends 1.07 hours a day on the net, a rise of 43 per cent from the figures published by the institute in 2005.

The survey also revealed the main drivers for people using the worldwide web. Unsurprisingly, ‘accessing information’ came out top at 60 per cent, above communicating with friends and family and purchasing goods and services.

This indicates that adults are actively searching for information, perhaps researching their next holiday destination or car purchase.

This Touch Points survey further reinforces a



‘The penetration of the web has now hit 73 per cent and the average adult spends 1.07 hours a day on the net.’ whole raft of recent media studies all indicating the rise of the internet as the fastest growing media format. Knowing how to capture this interest is key to driving your leads and enquiries and in turn increasing sales – if you aren’t, you can be sure your competitors are!

So what can be done? It goes without saying that a high quality, modern website is an absolute must-have. The next challenge is getting large numbers of the right audience to see your deals and noticing you in an industry where

there is a plethora of competing rivals.

This is where websites such as ContractHireAnd Leasing.com, SaveMoneyOnCars.co.uk (above), or TheVanWebsite.co.uk can take your online exposure to another level by putting your deals and company name in front of hundreds of thousands of people that matter.

Another excellent way of increasing a dealership’s exposure is through publishing regular press releases. Publications like this one are always interested in relevant news. Websites such as FleetDirectory.co.uk and TheGreenCar Website.co.uk also offer opportunities to publish news stories based on your press release.

Finally, do not forget that online banner advertising is a proven way to increase the exposure of your dealership – just make sure you advertise on the most popular, relevant websites!

SaveMoneyOnCars.co.uk

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CarDealer

CarDealerIss7.indd 59

reallygooddomains “Number 1 in Marketing For Motoring...”

59 5/9/08 09:40:39

auctions

Classics defy the crunch As the SMA warns auction prices are on the increase, BCA reports there’s one sector still performing well – classics

A

uction house charges could be on the up, the RMI Society of Motor Auctions has warned. The SMA says auction firms can not continue the price-freezes that have been in place for the past few years and that means one thing – cars bought at auction could become more expensive.

‘Energy and business rates have both increased, as has the cost of insurance, labour and consumables for auction houses,’ explained Louise Wallis, head of the SMA. ‘The 50 per cent increase in fuel prices since December last year has also made a significant impact on margins.

‘The vehicle remarketing industry is a low margin, high turnover business, which is only sustainable from a low cost base.’

Auction houses have made big steps in becoming more efficient over the past few years, says the SMA. New and additional services have also been introduced, including specialist collection services, vehicle preparation, and IT-based bidding and similar internet services.

But this is a low-margin business, reports the society – and many can no longer hold off increasing their charges.

But it’s not all bad news in the auction world.

At BCA is seems classic cars are immune from the tightening financial pressures that are infecting much of the industry.

BCA’s latest specialist classic auction recorded yet another good month, with 37 cars selling on a 65 per cent conversion rate.

What sort of money are we talking? How

A stunning Sierra RS Cosworth, like this one, went for £6,950 at a recent BCA classics sale

‘At BCA it seems classic cars are immune from the tightening financial pressures that are infecting much of the auto industry.’ about a 1979 Ferrari 308 GTS for £18,425 – the top price recorded on the day. It had, however, done only 27,000 miles.

Slightly more affordable was a 1967 Volvo

P1800S. ‘The Saint’ model sounded like something to be avoided – it had no paperwork or history – but great condition helped it make £8,050. That’s more than twice the top estimate.

Our favourite of the day had to be the 1986 Ford Sierra RS Cosworth which went for £6,950 – sadly not to us!

‘A number of cars sold for well above their estimate, which suggests there is a ready market for interesting and unusual vehicles, despite the current economic conditions,’ said BCA classics manager Robin Lawton.

Huge Carillion fleet set to be remarketed by Manheim

Manheim Auctions have won Carillion deal

60 CarDealerIss7.indd 60

CARILLION’S 18,000-strong vehicle fleet will largely now be remarketed by Manheim Auctions.

The support and construction firm’s fleet compromises one-third cars, twothirds commercials and Manheim’s been given the responsibility of remarketing 70 per cent of it.

This deal extends to 2010, with the possibility of a 12-month extension.

Logistically, Manheim’s dedicated CV centres will handle the commercials, with the cars selling through Birmingham, Colchester and Manchester.

There will also be a central car defleet operation in Birmingham, where cars will

be inspected and reconditioned prior to transport onwards to sale.

Here, re-allocated vehicles will also be appraised, repaired and cleaned before delivery to customers.

Carillion’s supply chain manager Steven Danks said: ‘The growth of Carillion in recent years has resulted in the need for a well-managed and structured vehicle remarketing programme. Manheim’s wealth of experience and expertise will contribute greatly to this process.’

Martin Potter, corporate sales director for Manheim Auctions, added: ‘I am confident that the team will meet all of Carillion’s requirements and expectations.’

CarDealer

5/9/08 09:40:40

FLAG feeling - Car dealer

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Brindley Road, Stephenson Industrial Estate, Coalville, Leicestershire LE67 3HG T: 01530 833535 F: 01530 813425 email: info@fleetauctiongroup.com www.fleetauctiongroup.com

WHEN WHE N THE THE HAMMER GOES DOWN

WE ASK ASK ‘WHAT ‘WHAT NEX NEXT?’ T?’ At BCA we never stop. As soon as one vehicle rolls out, the next one rolls in. It’s how we sell hundreds of thousands of vehicles at our auction centres and online each year. And because we never stop, you can be sure you’re getting the best choice, always.

www.bca-europe.com

We never never stop stop

Why should you advertise your business in CarDealer. ? Don’t ask us – we’ll let our happy clients tell you instead...

‘The response from our Car dealer adverts was immediate and appropriate, after only a few hours of the edition being read, i received more quality calls than ever expected. The publication gained us an invaluable springboard to which to reach our audience.’

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www.hbc.co.uk 5/9/08 09:40:43

recruitment

How to pick the best staff wonders to get the interview off to a good start.

You will probably have a list of questions prepared and when asking them, do take time to listen to responses. It is possible that you have already benchmarked another candidate but by asking key questions, you may well see different characteristics that are just as appealing.

First impressions count, and factors to look here are many ways to attract candidates out for are that the candidate turned up on to apply for your positions. From advertistime and well groomed, displayed positive body ing in the local rag to using specialist language and was genuinely interested. automotive agencies – there are lots of routes Asking questions that give a yes or no answer to getting a candidate in for interview. won’t give you the insight on the individual or But what happens next? What do you do their skills, so you need so ask questions where a when they actually turn up for a chat? Well, full reply is the only answer. firstly the most important thing to remember At the end of the interview, shake the candiis setting out the brief for the person you want Making sure you get interviews right is crucial date’s hand and thank him or her for the time to employ. Make sure you state the job title, the and also give the jobseeker a better idea of what spent attending and explain what will happen salary, benefits, any bonus and perks – this will next and when they will know the outcome of it would be like to work for your company. give a clear description of duties and the type of the interview. After they have left, add to the Prepare the structure of the interview in environment the candidate will work in. notes you made during the interview with your You then need to handle the responses and it is advance, as much as the candidate should want assessment on their suitability, bearing in mind good practice to let jobseekers know as quickly as to impress you, it also works vice versa. The candidate is likely to be nervous on meeting with their experience and personality. possible whether their application is going to be Next month… stop staff being poached taken further. Interviews further assess suitability you, so a handshake and welcoming smile will do

So you’ve got to the interview stage, how can you make sure the candidates are right for you? Hot Automotive reports

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CarDealerIss7.indd 64

5/9/08 09:40:49

Peering into the lives of the motor trade...

On The Spot

Name: Craig Rutherford Job: Affiniti Motor Finance managing director What was the first record you bought? I dread to think, something by Queen probably.

Name: Craig Rutherford Age: 37 (mentally 21, but with the hairline of 65) Lives: Essex Any family? Not yet What do you drive? Audi Q7

What’s your favourite film and the last one you saw? My favourite would have to be Gone in 60 Seconds or Fight Club. The last one I actually watched would most likely be some horrible girly film that my girlfriend made me sit through!

What was your first job?

Working in Top Man selling terrible drainpipe trousers.

What was your first car?

A beautiful MKI Fiesta in a dodgy orange colour.

Favourite football team?

Newcastle United of course!

Who do you work for now?

Affiniti Motor Finance.

Have you got any superstitions? Not really, but I did trip over a black cat whilst walking under a ladder on Friday the 13th if that means anything?

What does this involve?

Working far too hard for a living! Visiting motor dealers and listening to exactly what they want/need in terms of lending and service, and then I just have to provide it somehow!

What are your job’s biggest challenges? That would have to be providing top quality service and a calming influence to dealers when lenders are changing daily.

Any downsides? Just the pay, the hours, the lack of holidays, apart from that, it’s all good!

How much do you earn?

Nowhere near enough I can tell you!

Do you have an average day and how does it pan out?

No day is average at the minute, as I write this another lender has dropped out of the market so it’s a day of making sure we have

‘I did trip over a black cat whilst walking under a ladder on Friday the 13th.’ the best available panel of lenders to offer dealers. Normally, however, I like to visit dealers at least three days a week and keep in touch with the real face of the industry.

What newspapers/magazines do you read? I would love the chance to sit and read the papers during the week! On a Sunday however I do like something high-brow like the News of the World!

What is the most expensive thing you’ve ever bought (excluding your house)?

My fiance’s engagement ring!

I refuse to say how much, but I still wake up in cold sweats thinking about it!

What’s your mobile phone ring tone? A good old fashioned ‘ring-ring’. You cannot visit a dealer and be interrupted by something like ‘Barbie Girl’ can you?

What is the biggest challenge car dealers face? For prime motor dealers it has to be maintaining levels of service and profitability while we are in these very uncertain times. However if you are a dealer specialising in non-prime, I would have to say simply surviving is the biggest challenge!

What would be your number one tip for car dealers? Push your customers for as big a deposit as they can afford, it may mean the difference between an acceptance and a decline, a big deposit gives a lender much more confidence to do a deal!

And finally... what’s your motto in life and business?

Never eat yellow snow!

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

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5/9/08 09:40:56

competition

WiN! Posh Jabra handsfree kit Y

OU work hard, so why not enjoy the finer things in life – especially if you don’t have to pay! That’s right, to get your hands on this luxury Bluetooth handsfree kit you don’t have to pay a penny.

All you need to do is send us an email with your name and address and we’ll enter you into the draw to win one of two of these cool £100 headsets we’ve got to giveaway.

You might be worried about looking a plonker with something clinging to your ear – but these are quite a bit smarter than the ones your average minicab driver sports. This is the Jabra JX20 Pura and has been designed by leading style house Jacob Jensen.

The tiny headset is about the size of a 10 pence piece and weighs just 13g!

That’s thanks to the titanium material used in the kit. The earpiece maximises comfort when worn and simply rotates to turn the headset on and off.

It comes with an ear hook too that can be easily removed so you can wear it like an MP3 player headphone in your ear.

Sound quality is crystal clear thanks to digital signal processing technology and it offers an impressive six hours talk-time.

Charging is simple via a PC with the USB cable and when we tried out a test model the volume control that automatically adjusts worked brilliantly.

You even get a desktop stand for charging and when not in use you can wear it around your head on the supplied necklace… if you really want to.

The Jabra JX20 Pura is available from the Carphone Warehouse – but if you want to get yourself one for nothing simply send an email, with your name and address on, so we know where to send it, to james@blackballmedia.co.uk Winners will be picked out of a hat on Friday, October 3, so make sure you get your entries emailed over before then.

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CarDealerIss7.indd 68

5/9/08 09:41:01

products 1. Go Pro Hero Camera

Price: £100 Contact: goprocamera.com HOW many times have you got back from a legendary drive only to wish you could have captured it on camera? Well now you can! Ideal for track day enthusiasts, the makers of the GoPro claim the tiny unit is the smallest on-board wireless video camera in the world. It has 16mb of internal memory but you can expand that with an SD card – our test unit came with a 2gb card that could capture 56 minutes of footage complete with sound and worked superbly!

2. Apollo Transition

Price: £270 Contact: halfords.com YOU might ignore folding bikes for their weird looks – but if you’re a stressed-out commuter a collapsible cycle is worth a look. The Apollo Transition will stash away in your car with ease and features V-brakes, six speeds, 20-inch alloy rims and a luggage rack for your briefcase!

3. Silva L4 Headlamp

Price: £20 Contact: silva.ltd.uk IF you don’t care what you look like, a head torch can be one of the handiest gadgets you ever buy. The Silva L4 is a lightweight model that you hardly notice you’re wearing. It features an adjustable, elasticated headband and five bright LEDs. It is all operated by a single rubber button which toggles between power save, medium, bright, blinking and red ‘night vision’ modes.

4. Goodmans GHDAB101

Price: £45 Contact: goodmans.co.uk THIS dinky new hand-held radio is currently the smallest stand-alone DAB/FM radio in the world.

It comes with quality headphones, which double up as the aerial, and requires just two AAA size batteries to provide more than 10 hours of DAB radio listening or 15 hours of FM.

5. Garmin Nuvi 205

Price: £140 Contact: garmin.co.uk THIS is the latest entry-level Garmin and is one of the simplest sat nav units we’ve ever used.

Boasting a host of fresh features and some smart design touches for the on-screen graphics, the Nuvi 205 really impresses. Its built-in speed camera-spotting software was accurate on test and it offered excellent route guidance too.

6. Meguiar’s Tech Wax 2.0

Price: £16 From: meguiars.co.uk THIS Tech Wax 2.0 Paste is a fully synthetic product that is said to glide on and off whatever the temperature. The makers say it features Hydrophobic Polymer Technology that increases surface tension and creates a barrier that makes water bead and slide off.

7. Road Atlases

Price: £11 Contact: philips-maps.co.uk THIS new range of road atlases offers something a bit different. The Philip’s offerings list all the UK’s fixed speed camera sites with speed limits, all known mobile traps and there are even tips for better driving from the IAM. Handy.

CarDealer

CarDealerIss7.indd 69

69 5/9/08 09:41:06

K62851-GH BEN_297X210 x2

12/11/07

10:50

Page 1

www.ben.org.uk.

Luckily over 18,000 members of her family were able to help out.

At times you really need your family. That’s where BEN can help.

As the automotive and related industries’ own charity, we’re here to offer vital help and support to all members of our family when they need it most. BEN is your charity, so whether your need is financial, physical or emotional we’ll be on hand to help – for however long you need us.

Our family includes everyone from cycle manufacturers to motor insurance clerks, past and present, even their immediate family.

For more information or to request BEN’s help simply call 01344 620191 or log on to: www.ben.org.uk

To make a donation to BEN simply call

01344 620191 CarDealerIss7.indd 70

5/9/08 09:41:07

used cars

Trading Places

z

...in association with BEN

Date

9/11/07

Initials

GH

Riverside raises the bar stepping forward and taking up the baton for BEN is James kahn from riverside Autos – and he’s already invested our cash in a tasty Megane

RBH Job No: 8399 / Vers 1 Date: 9/11/07 File Name: K62851-GH BEN_297X210 x2 Finished Size: 297X210 Notes:

0

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RBH Amends

Studio Production: Copywriter: Art Director: Client Services: Client:

Client Amends

SIGN OFF

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ike a seamless Olympic relay, the Trading Places baton has been passed on – to James Kahn, of Riverside Autos. He is our latest recruit looking to bolster the BEN fund bank.

It currently stands at a healthy £1,650, so what does our man have in mind to push it towards the £2k mark? Well, we’ve altered the rules slightly. This is not some sort of dubious twist, but a reflection of how things are out there.

To give us the best possible chance of maximum returns, we’ve said to Kahn that he doesn’t have to buy one car for the total amount – but can instead invest the £1,650 into something more expensive, topped up by his cash, then give us a percentage of the profits.

‘I’ll be happy to do this,’ Kahn told us. ‘I’ve been following the progress of you guys, and am keen to see how I get on!’ Just the sort of attitude we like. But even we were surprised to hear back from Kahn just a few days later. ‘I’ve got a car!’ Blimey – no hanging around there. ‘It will be the transporter in the next a 55-plate Renault Megane Sport few days.’

The French model has 40k diesel, which will be arriving on

James Kahn of Riverside Autos has invested our BEN cash in a 55-plate Renault Megane diesel. He plans to hand us a chunk of the profits

on the clock, and Kahn is going to put it on his forecourt for £6,495. That’s a fair chunk of

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. Mark Boyt, Tim Stentiford and an added bonus from Kevin

Griffin mean we’re up to £1,650. That cash is now with James Kahn in a Megane.

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.

three-year-old car for the money, which hopefully should shift pretty quickly.

Kahn seems confident it will sell on soon. ‘I don’t think the market has slowed down much at all. So long as the cars are presented correctly, they will sell,’ he told us. ‘Customers have so many different opportunities to find cars now, and their expectations are so high, then if cars are not presented in order, they will leave them

It wouldn’t have been possible without...

CarDealer

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71 5/9/08 09:41:10

used cars

More tyre kickers, less

As buyers take a wait and see policy, CAP predicts values will fall even further this year

T

he ‘wait and see’ strategy of retail customers has continued during the summer, with the rate of showroom traffic looking healthy. Problem is there’s more tyrekicking going on than buying.

There are signs that the rate of decline in the current used car market was easing a little in August, with a slightly smaller fall in values.

Although this could only be good news it would be unwise to attribute it to anything more than the natural variations that occur from month to month in an unstable market.

There remains no reason to anticipate any fundamental change in fortunes for the medium term. Most commentators in the economics and wider business community remain

confident that conditions across most markets will not see any significant improvement until 2010. Those bearing the full brunt of this are large-scale disposers, principally in the business car sector. Their pain, however, is leading to a gain for dealers. This is because contract hire businesses are extending leases in an effort to avoid taking the current hit on disposal values.

Without this trend, supply in the used market would be greater still and this would inevitably push values back further.

To give a flavour of conditions this year, analysis of Black Book reveals that used car prices fell between January and July more substantially than during entire years in recent times. CAP has been reluctant to forecast short term value falls this year, in view of the sensitivity of the market and the risk of causing alarm and prompting even further caution. However, widespread publicity around other commentators’ views, growing customer demand for a CAP response and an increas-

Do you feel that the Credit Crunch is eating up your profits?

C sector values are taking a serious battering ing amount of marketplace evidence means CAP is now prepared to offer a view on used values going forward.

Based on performance this year, CAP thinks additional depreciation over the norm this year will be 7-8 per cent, based on the benchmark of three years, 60,000 miles.

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CarDealer

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...in association with CAP

s buyers However, such a headline figure is of limited value in the sense that it disguises the fact that there will be winners and losers in terms of car types. It does not take an expert to predict that large, heavy, big-engine vehicles will lose more value than economical cars that can be sold on value for money.

One area of concern is the C sector (Focus/Astra type) which is very much the mainstay of retail dealers with family car customers.

The contracting retail market may well lead to more pain here than in the D sector (Mondeo/ Vectra type) where falling values have been established for some time.

One factor that may come into play is a realisation among existing owners of larger vehicles that it may make more financial sense to stay in the car and put up with growing running costs rather than take the increased size of the hit on disposal. However, whatever is in the minds of retail customers, the coming months will be difficult for dealers.

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Downsizing drivers offer dealers opportunity THE current market downturn is painful, especially as it was never foreseen and therefore could not be prepared for, but it should not be assumed that things are grinding to a halt.

People still need to buy cars, but they are now in a position to pick and choose and drive harder bargains than ever. The downsizing trend offers the greatest opportunities. Dealers who are able to convince potential buyers that they will be best protected from ever-increasing fuel costs by choosing a newer, more efficient vehicle will be best placed to maintain their cash flow.

Looking at research in the retail used car market, it is clear that little significant change was seen during July into August. When comparing their monthon-month performance, only 14 per cent of dealers noted an improvement.

The real story now lies in exactly how tough life is for dealers at the moment.

According to a nationwide panel of dealers, 34 per cent saw little or no change in conditions during July while another 33 per cent felt that the market

Buyers downsizing offers dealers the biggest profit opportunities had deteriorated a little further. Most worryingly 18 per cent described market conditions as ‘considerably worse’.

Research for Black Book has indicated that showroom traffic is in relatively good shape, indicating that many wouldbe buyers are keeping an eye on the market without committing. This supports the view that the biggest problem at the moment is that people are afraid to spend, rather than unable to.

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tail light

Sub-Prime Time T

here does seem to be some light at the end of the tunnel, and I don’t think it’s a train charging towards us. It’s early days, and I haven’t seen enough movement in the market for me to say categorically that things are picking up, but recent signs are encouraging.

It’s been clear for some time that customers have been putting off buying for as long as they can, both from a ‘if we don’t really need to change our car, then let’s not’ viewpoint, and also a lot of customers are holding off to see what deals can be had when things get really tough. It’s certainly fair to say there are a lot of good deals out there!

It may simply be that those customers that have been putting off buying are now getting to the point where they ‘need’ to change their car. At First Response, we’ve had a steady year so far, with volumes up (but only slightly) on 2007.

Of course we had expectations of volumes well in excess of last year, but the credit crunch and our own actions to mitigate risk under the current economic climate have had an impact, as in many organisations.

As mentioned above, while it’s still early days we’re now starting to see an upward lift in business, which gives me hope for a strong finish to the year.

From around March to June application levels were falling, but so was the quality of these applications.

Application levels have now been fairly steady for some time but the quality is showing a distinct improvement, which leads me to believe that those customers that have been putting off purchases are now starting to buy again.

As First Response only deals with non-standard applications, I can’t speak for the industry as a whole. I’ve been expecting an upturn in the non-standard market

‘There does seem to be a light at the end of the tunnel, but it’s a non-standard light and I really think that’s where the margins and growth will be.’ anyway, with a lot of previously prime customers now being classified as non-standard. For me, it was never a question of if the market would lift this year – it was always a question of when.

The non-standard population will have increased significantly during this year, to the detriment of the prime market, and I suspect that prime customers (who have much younger and better quality cars) will continue to put off changing their cars for some time because their cars are still ‘okay’, or until the deals get so good they can’t resist – but there will be little margin to be gained from these deals.

In contrast, in the non-standard market, I now feel we are starting to see the long-awaited uplift, both in terms of customers needing to change their cars and also in an overall increase in the population.

So, there does seem to be light at the end of the tunnel, but it’s a non-standard light, and that’s where the market opportunities, margin and growth will be in the short and (I think) the medium term.

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.

Editorial Director James Baggott E: james@blackballmedia.co.uk T: 023 9252 2434 Deputy Editor Richard Aucock E: rich@blackballmedia.co.uk T: 023 9252 2434

74 CarDealerIss7.indd 74

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by Blackball Media Ltd (Company No 6473855) Duncan Chappell, Dan printed by WarHarris, Bob Hume, Mike Hind, and ners. All rights reserved.

Conditions of sale and supply include the fact Car Richard Gibbon, Simon Evans Dealer shall not, without our consent, be lent, and Chris Jervis resold, hired out or otherwise disposed of in a mutilated way or in any unauthorised cover by Sales Executive Thanks to... way of trade or affixed to or as any part of a publication or advertising, literary or pictorial matter Fiona Russell Justine Hoadley, Tim Marlow, whatsoever. Car Dealer is fully protected E: fiona@blackballmedia.co.uk Danny Lee, Tim Naylor, Dave by copyright and nothing may be printed T: 023 9252 2434 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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