Car Dealer Magazine: Issue 8

KT M

CarDealer.

Issue Eight November 2008 www.cardealermagazine.co.uk

X-B ow

Driving the future of the motor trade

TECHNOLOGY

Inspect a gadget [The products and services that will make your life easier]

MARKET

The used car headache [What the experts think will happen] [HPI Valuations join Car Dealer team]

Electric dreams Tesla: the supercar YOU PLUG IN ROAD TEST

LAST CHANCE To ENTER EWARDS!

Just days left to enter your dealership website for a gong... p24

p2 6

start Issue eight | November 2008

‘Ok, so we might have only featured the GT2 last month, but I wanted my say on why I think the classic GT3 is better.’ Cult Cars, p36 THE rise of technology in our everyday lives has been meteoric in the past decade.

Take the internet, for example.

Rewind to the early 90s and noone could have imagined that one day we’d be reading the news, ordering our weekly shop or watching videos all on a computer screen!

But, in just a decade, the internet has risen from geek chic to a consumer must-have – and our businesses have had to change dramatically in the process. It’s for this reason that we decided to launch our Ewards, in association with Motors.co.uk.

The awards are designed to celebrate the very best automotive websites in the UK and in doing so help show you just what can be achieved online. We’re looking for winners in four categories – franchised, independent, car manufacturer and special achievement – and time’s running out if you want to enter!

Don’t worry, we won’t charge you for the privilege – entering is free. All you need to do is send me your website address and a couple of lines about what you like about your site to james@blackballmedia.co.uk and we’ll enter you into the mix. Just make sure you get your entry over by 5pm on OCTOBER 17.

So, what do you get for your trouble? Well, a visit from us for a start (do you need anything else?), a tasty trophy and the bragging rights of the industry. We can’t say fairer than that!

Full details can be found on page 24 and I look forward to checking out your site.

On the subject of technology, this month we’ve been taking a look at some of the clever products out there that can help you improve your business. There’s dealer management systems, call recording and even clever ways to transport your stock around the country, and they’ve all got one aim – to make your business more efficient and thus save you money. Find out what’s on offer on page 47.

James Baggott, Editor

03

CarDealer

WOW!

Other highlights in this issue include a clutch of exclusives – we’ve spoken to the justappointed Mazda UK boss about the popularity of the brand north of the border (p14); heard Nissan is set to wield the axe to its network (p11); and learned from an industry insider why manufacturers are more worried about this year, than next (p8).

However, my highlight of Issue Eight has to be Big Mike’s musings. I won’t spoil it for you, but it involves a Triumph, the mayoress and sleeping in a car. Ok, so it might not be in that particular order, but it’s still funny nonetheless.

Happy selling…

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ignition Issue eight | November 2008

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08 11 12

Agenda

The used car market mystery

Cashback comeback

2009 causes sleepless nights

Nissan to axe 30 dealers Chief: Improve or you’re out

Black Horse restructured

Finance firm changes to help you

14

Mazda’s Scot the lot

16 18 20 22 24

Volvo aiming high Honda’s open points Ford boys’ new toys Big Mike: The Apprentice Ewards: Last chance!

Exclusive chat with new UK boss

34 CarDealer

47

forecourt 26 31 33 34 36 38

KTM X-Bow Ford Fiesta BMW 7-Series Tesla Roadster Cult Cars: 911 GT3 Legends: 70s Fiesta

features 43

Motortrade-Mail

47

Inspect a Gadget

55

NEW! Right Click

06

38

Industry site’s big relaunch Technology to help dealers Unravel the internet mystery

57

LCV Insight

59

Dot Com

60

Auctions

Be savvy in tough times The pyramids of power Buyers take the summer off

62

Recruitment Section Plus: Hot Automotive column

65

On The Spot HPI’s Wendy Swaine quizzed

67

Competition 2.0 Win sat nav and handsfree!

69 70 71 72 74

Gadgets Used Car News Trading Places HPI Valuations Insight Sub-Prime Time

‘For those of you thinking invalid chairs and milk floats, here are two stats: 0-60mph in 3.9s and a range of more than 225 miles.’

05

agenda

The Used Car Market

MELTDOWN! What will happen to used car prices between now and Christmas? That’s the question Richard Aucock put to our panel of market experts.This is what they said

V

olatile doesn’t even begin to describe it.

What, the Stock Market? No, the used car market. Nobody could ever have predicted how ravaged things have been – it’s akin to a hurricane, leaving destruction in its wake. Only superminis, sensible-engined diesel cars and lower-end mainstream family cars have been left standing.

The rest – the SUV sector, the big-engined people carrier market, as well as anything expensive and luxurious – have all been felled. Even largerengined Mondeos are being hammered even more so than normal. It’s hell out there.

Will there be any respite? Is the storm over?

Will the cars doing well continue to do so? What are the future prospects for that feared 4x4 sector? Where, in short, should dealers be putting their money? All questions we, and you, want answered.

One thing’s for sure, people are certainly wary of making predictions. Things are changing so quickly, the main guides are finding it difficult to keep up. Volatile sectors can be out of date before the latest guide even hits dealers’ desks.

When panic is setting in across the board – witness the ludicrous swings in the FTSE 100, for example – it’s inevitable some may be wary of looking too far into the future.

But it’s essential we do. Livelihoods depend on it. So, we posed one simple question to some of the best industry brains in the business: What do you think will happen to used car prices between now and Christmas? This is what they told us...

Martin Keighley [HPI]

With continued financial uncertainty in most markets, including share prices, banks, housing and the motor industry, used car prices remain unsteady. Vehicles with high CO2 figures will continue to suffer. The price of them, notably 4x4s, is likely to plummet between now and the end of the year. In contrast, we are expecting small cars to hold steady and be in demand.

Also, some high-end, prestige marques are being bought, to export to eastern Europe and Russia.

06

This is likely to help stabilise prices in the short term. But it is likely that prices on the majority of used cars, including all fleet-type cars, will fall at a rate of around four per cent per month.

Richard Crosthwaite [EurotaxGlass’s] Values will continue to fall, although at a slower rate. Smaller cars may perhaps see the smallest moves and may even stabilise. Big-

engined cars are so cheap. It’s hard to see them falling much less. Diesel premiums are probably as high as they will get, and smaller petrol engines may have a brighter future relative to diesel: they are better value and more rare.

Luxury saloons, big coupe/roadster sportscars and 4x4s (the worst points in the market for the past few months) look likely to struggle until spring. The older end will come under pressure from late cars. ‘Why have a three-year-old car

CarDealer

...Used Car Market special report

‘The used car market is in a state of flux and it’s hard to predict which way prices will go.’

Sue Robinson, RMIF since early summer, at a rate of around four per cent per month overall. This is likely to continue. Despite the increasing talk of financial ‘meltdown’ and impending recession in the wider economy, evidence remains that there is ongoing demand for cars at the smaller, more economical end of the market. Inevitably, this means there will be wide variations in price performance – with large, less economical vehicles bearing the brunt of weakening values. There is no reason to expect any significant change in these factors for the remainder of 2008.

John Proctor [SMMT]

Falls in new car registrations are essentially down to a lack of consumer confidence, which will directly impact on the price of used cars.

If a person decides to keep their existing car for longer. Then, ultimately, its market value will diminish. This has wide-ranging negative effects. On a fiscal basis, it will become more difficult, and certainly more costly, to trade or sell their current car. This slows down the parc replacement of older vehicles. Unless consumer confidence is restored very soon, prices of used cars will undoubtedly drop further.

Simon Henstock [BCA]

September has brought some relief to the used car market, but the overall picture is far from rosy. Values have strengthened as you might expect following the summer months and professional buyers were certainly more active in September, both in the auction halls and via BCA’s internet-based Live Online service.

However, demand is much weaker than we have seen at this point in previous years. This reflects the current broader economic position and there is nothing to suggest there will be any great improvement during 2008.

Alex Wright [Manheim] and only save a few thousand, when you can have nearly new,’ is what the customer is saying.

Sue Robinson [RMIF] The used car market is in a state of flux, and it is difficult to accurately predict in what direction price trends will go. However, we know many consumers are looking to reduce their motoring costs along with other household commitments, which will stimulate demand for vehicles

CarDealer

perceived to have more economic running costs.

Consumers are looking for cars with low vehicle excise duty, good fuel economy, and low mileage. First and foremost, they are looking for a bargain. This provides dealers with an opportunity to stimulate business – if their used car portfolio matches consumer requirements.

Darren Kennedy [CAP] Used car values have been drifting downward

The tougher market for wholesale used cars first reported earlier this year, and further undermined by the pre-September seasonal downturn, looks set to continue for some time. However, reassuringly, interest in the lower priced ‘budget’ vehicles at auction remains high, confirming that there continues to be demand in the marketplace if the price is right. Superminis, small and large coupes are up, but average values in the main segments remain under pressure.

Don’t miss our revamped Used Cars Section – it starts on page 70

07

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Cashback comeback?

What will happen next year is car manufacturers’ biggest cause for concern THIS year’s sales are a concern for us all – but it is what’s going to happen next year that’s keeping manufacturers awake at night, Car Dealer can reveal.

An insider at a major manufacturer told us 2009 will be the crunch year for car makers as the effects of the financial crisis really begin to bite.

‘That’s when the effects of falling house prices will really start to dawn on people,’ said our mole.

‘Factor in tighter lending conditions, rising commodity prices and the higher cost of living, and we could be in for a tough time.’

Makers are already seeing clear evidence of changing buying patterns. People are now downsizing from larger cars into progressively smaller ones, and if they don’t change to a smaller car they pick a

Will cashback deals, like those favoured by Citroen, make a comeback smaller engine in the same class instead. Previously the runt of the litter, smaller petrol engines in larger cars are starting to win favour.

And this trend is expected to continue, especially once next year’s VED changes start to bite. It’s vital dealers study and understand the bandings carefully to ensure they’re not stuck with high-CO2 stock that simply won’t sell, our in-

sider warned. Our expert also said manufacturers will now be heavily targeting retail sales with cashback deals making a comeback.

‘When money is tight, the lure of buying a new car on finance and, theoretically, getting a couple of grand in the bank to boot, is a very compelling marketing trick,’ said our man in the know.

RICHARD AUCOCK

It’s not all white for used car buyers WHITE has been the colour to have for new car buyers recently. If you’ve been reading the editor’s blog on our website you’ll know even he’s been bitten by the bug!

But EurotaxGlass’s has reported that used buyers are much less convinced as to the colour’s merits.

High-performance and sportily-styled white cars are achieving trade-in values similar to those in fashionable metallics. However, in most instances, white remains a turn-off for car buyers. And the penalty can be as much as £5,000! Examples where white is right include Audi’s S3, RS4 and R8 or BMW’s 1-Series M Sport and M3.

However, a supercar or luxury grand tourer in white will still be penalised by five big ones.

‘If white falls out of favour with fashion-conscious buyers, values could fall sharply,’ warn the experts.

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Nissan set to axe 30 dealers across UK EXCLUSIVE: UK chief tells Car Dealer some dealers need to get their act together or move on NISSAN is set to cull up to 30 dealers across the UK. Nissan chief Paul Willcox has warned of major and sweeping changes in its retail network – and that means wielding the axe to under-performing sites.

‘At least 20 to 30 of our existing outlets will have to change big time,’ said the MD for the UK in an exclusive interview.

‘This means getting their act together or moving on. We have 189 dealers now and want to get to around 208 by 2010, but we will go through a process of cleaning up the network first.

‘There will be casualties. If I was a betting man I would say that 10 per cent of the entire network will depart. We have a lot more new and exciting products coming.

‘In fact there will be 16 new cars globally over the next five years and many more all-change technologies will be brought to the marketplace.

‘In keeping with this, every single dealer will come under the spotlight.’

Willcox’s stark words come at a time when Japan’s number two car conglomerate is showing a 16 per cent sales surge in Britain with market share now at 3.2 per cent. But there is no room for

Burgess Just checking Are FSA regulations starting to give you a headache?

T complacency and Nissan wants much more of a UK share which stood at more than six per cent 20 years ago.

‘I would say 60 per cent of our current dealers are perfectly capable of delivering what we want by 2012,’ Willcox added.

‘The other 40 per cent will have to change or go within the next three years.’

The bullish boss wants dealers to achieve 80 per cent conquest sales in SUV and MPV markets and revealed that average dealer profit through the network now stands at 34 per cent.

RICHARD GIBBON

Daihatsu dealer signed up HERTFORDSHIRE has a new Daihatsu dealer, in the shape of Baldock’s Quenby Bros Ltd. A family-owned business, it’s been going since 1919, and employs eight staff. The deal with Daihatsu will see it selling both new and used models. Dealer principal Donald Duncan said: ‘We are delighted to be appointed to a franchise synonymous with reliable, low-polluting and compact cars.’ The new site is one of eight signed up in 2008.

CarDealer

‘Give us peace and quiet over safety every day’ WHAT do buyers want? Peace and quiet! And they’re getting it from hybrid and electric cars, a new survey has revealed.

This is just another reason, apart from the obvious green credentials, why the eco-cars are becoming ever more popular with buyers.

Thegreencarwebsite.co.uk asked visitors: ‘Should the UK government introduce legislation to make it compulsory for manufacturers of electric and hybrid vehicles to add artificial noise for road safety purposes?’

‘No’ was the resounding answer from more than half of them. Given the choice between pedestrian safety or peace and quiet, refinement wins every time. Interesting.

imes are hard. Costs are rocketing, credit is crunching and a recession is looming fast. But you don’t need me to tell you that. However, despite all the problems, maybe things aren’t as bad as they seem.

Among all the doom and gloom recently, I noticed a survey Sainsbury’s Finance had released showing annual motor insurance premiums had topped the £500 mark for the first time. It caught my eye because it contradicted our own insurance information from our parent Norwich Union, who provide our much imitated seven-day insurance product, Driveaway.

In fact our figures show average premiums in August fell to their lowest level this year, and are ‘Costs are significantly lower than rocketing, credit those quoted by Sainsbury’s. Driveaway, as you is crunching probably know, allows and a recession dealers to provide seven days’ free comprehensive is looming fast insurance to their custom– but you don’t ers. Once the purchase of a vehicle has been agreed, need me to tell the customer simply rings you that.’ the dedicated call centre to initiate cover. Dealers then receive a cover note via email allowing them to tax the vehicle.

By removing the obstacle of customers having to obtain insurance cover prior to purchase, Driveaway makes the sales process quicker for dealers and customers alike.

With no administration costs or extra time filling out forms, it removes another barrier to completing that allimportant deal.

However, the real boon is that unlike similar offerings from manufacturers, dealers are seen as introducers and therefore do not have to be FSA regulated to introduce Driveaway. Daihatsu and SsangYong are the latest major manufacturers to sign up and Nigel Unwin of SsangYong told me his dealers couldn’t get enough of Driveaway as it removed a huge obstacle from closing a deal.

And on the subject of tough times – spare a thought for those struggling even more, as this joke reminded me: What’s the difference between a pigeon and a merchant banker? A pigeon can still leave a deposit on a Ferrari…

HPI Valuations join Car Dealer team, p72

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

11

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Tew Net gains How can you beat the crunch? Start spending...

I

got a phone call the other day, which showed something that may take you by surprise. You may not believe what I’m saying, but… it’s not all doom and gloom out there. No, really. OK, everyone’s cutting back.

It’s very much the environment at the moment – you can’t seem to turn nowadays without seeing mention of the credit crunch.

But that phone call? It was from a mate of mine, the chairman of a large dealer group. Now, he’s always one for winding me up. I take whatever he says with a pinch of salt, usually. And I was all ready to do so this time, too.

He said he’d been reading my column last month, and had to give me a call. Why? ‘People may Because he was on for a record August at the time! be downgrading Blimey, I thought. This to smaller, more could be one of his best economical yet. But you know what?

He was being straight up. cars – but the I know; I double-checked in triplicate. And you know fact remains: a sale is still a sale his secret? He’d increased his advertising spend, in after all.’ a market where everyone else is cutting theirs.

I could use all sorts of whizzo speak to describe what he was doing, but I think his reason for it cuts right to the chase: ‘I’m a bigger maggot in a smaller pond’. And, it seems, his customers are biting.

The fact that advertising rates have plummeted also means he’s getting much more bang for his bucks, too.

And it’s getting results! As he pointed out, people may be downgrading to smaller, economical cars – but that’s ideal for him. A sale remains a sale.

People want more mpg? Great, he said! Instruct the buyers to load up on the small-engined superminis, tell everyone in the vicinity about this, and his only struggle turns out to be dealing with the extra footfall he’s seeing.

Use your website intelligently, look at your search engine optimisation – can you be found on Google? Do you actually have anyone looking after your website? Effective advertising really can pay dividends. To be blunt, in this sort of market, it depends on the size of your testicles. My dealer mate? He may talk a load of balls to me sometimes, but his staggering results for August shows he’s got ’em!

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.

12

We’re ready for POS finance resurgence ECONOMIC downturns have led Black Horse Motor and Leisure to undertake a restructuring – which should mean more finance for customers.

The provider says this will boost its strategic focus, revise its rate-for-risk approach, and help dealers cater for rapidly-increasing demand for POS finance.

Emphasis will shift towards pricing, product development, support and sales distribution. Significantly for dealers, finance will be opened up through more flexible rate-for-risk criteria.

‘This gives our dealers the option of writing business for a much wider risk profile, which historically may have been declined,’ explained MD of Black Horse Motor and Leisure Chris Sutton.

It is a positive response to reports of credit-crunched lending criteria. But one Sutton’s Black Horse, financed by triple Arated Lloyds TSB, sees as an opportunity.

Black Horse MD says he has great optimism for a ‘talked down’ market ‘Traditional and internet lenders have become much more cautious, or have pulled out of the market altogether,’ he explained.

‘As a result, potential customers are actively exploring other options at dealer point of sale. It’s this potential that gives me a great sense of optimism about a market that’s being continually talked down.

‘In reality, we are seeing a resurgence in POS finance.’

Sutton says Black Horse will move to more aggressive promotion of its POS finance – including the many dealer profit-generating add-ons, such as payment protection. But the company will continue its dedicated teams for caravan, motorbike and car finance.

RICHARD AUCOCK

Dealers take 1,000 orders for Focus RS

Buyers queuing up to hand over cash deposits for hot hatch – and 40 per cent pick green hue of launch car ONE car certainly seems to be selling in these tough times – and it’s a model nobody’s even driven yet!

Ford has confirmed more than 1,000 orders have been placed for the new Focus RS, the superhatch that arrives early next year.

Although pricing and other details remain sketchy, enough punters have been convinced to hand over deposits to dealers in order to secure their place on the waiting list.

One thing’s for certain, though – 40 per cent of people are determined to have the Electric Green launch colour of the model! Other dramatic hues include white and blue.

‘We’re delighted by the reaction of performance car enthusiasts to the new Focus RS and that so many want to place orders even though it will not be available until early next year,’ said Roelant de Waard, chairman and MD of Ford of Britain.

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Henstock Auction stations A peek into the psyche of the typical used car buyer

T

he annual publication of BCA’s Used Car Market Report gives us a chance to step back and think about the industry we work in, which is always a refreshing opportunity. When you are dealing with cars in volumes of hundreds and thousands it can be easy to lose sight of the fact that all these cars will eventually be bought by motorists and, for them, it will be a hugely important purchasing decision.

With this in mind, the report spends a lot of time peeking into the psyche of the used car buyer and particularly on the relationship they have with dealers.

BCA conducts a survey with the help of BMRB to find out just why motorists behave the way they do when buying a used car. The results ‘The report gives are always enlightening us a chance to and this year’s survey – step back and conducted in April when think about fuel prices were sky-high and in the wake of the the industry announcement on higher we work in, VED for vehicles emitwhich is always ting more CO2 – didn’t disappoint. For example, refreshing.’ motorists have been extraordinarily resolute on what they want from a franchised or non-franchised dealer before striking a deal. They want the right car at the right price, a good deal, to buy locally and to deal with friendly, helpful and professional salespeople. This year, used car owners also underlined the importance of being able to trade in their old car.

Price, value for money and depreciation are exerting an ever-bigger influence on car owners’ decision to opt for a used car rather than a new one. Thirty-six per cent of car buyers cite ‘I couldn’t afford a new car’ as the chief reason for buying a used vehicle.

When it is time to buy their next used car, 49 per cent of motorists intend to buy it from a franchised dealer, with 15 per cent saying they will go to a specialist or non-franchised used car dealer.

There is a wide range of issues that might provoke motorists into thinking it’s time to change their vehicle too – age and reliability were mentioned by a fifth of respondents – followed by the need for a smaller or bigger car or changed family needs.

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

Mazda’s Scot the lot

UK managing director tells Car Dealer why Scotland is key GRIM up north? Not if you’re a Mazda dealer it’s not! Mazda’s new UK MD tells Car Dealer the brand has double the UK average penetration in Scotland.

‘Our Scottish dealer network is very welldeveloped,’ explained Jeremy Thompson, who has just been promoted. ‘There are many family-owned businesses, rather than PLCs. They often have strong relationships with customers, with repeat business going back years. Once you have a critical mass, people see the cars more, and sales develop.’

The sales chief believes the fact Mazda itself has been developing is also key to increasing sales. ‘As our portfolio has grown, volumes have become more viable for medium-sized businesses,’ he said.

Not only does Mazda retail the world’s best-selling sportscar, but it also has superminis, family hatches, large family cars and a compact MPV in its range. Concepts show directions for possible city cars and compact SUVs, too.

But those dealers won’t be selling cars like bags of flour if Thompson gets his way.

‘We need to offer a vanilla-flavoured sales

Offering silly prices for part-exes is damaging IF you’re knowingly undervaluing a customer’s part-exchange, you’re losing out. Glass’s says word-ofmouth reports about silly offers on part-exes are hitting dealers hard.

Some are even said to be offering below-scrap prices for perfectly decent, but old, cars. Such shortsightedness is leading some people to be venomous in their portrayal of dealers – adding the spread of negativity to the loss of a sale.

‘When it comes to valuing an older part-exchange vehicle, dealers should remember that many people are often emotionally attached to their cars,’ says Glass’s older car editor John Glynn.

experience. If customers are in the showroom, they’re already warm. That’s why we’ve invested so heavily in dealer training over the last six months,’ he said.

‘With sales staff churn, we need to slow the sales process and show our heritage.

Customers are disappointed if you sell cars like commodities. There is no brand benefit.

Retention levels are poor. Dealers need to become brand advocates.’

That’s why Thompson is encouraging dealers to learn Mazda ‘stories’ – three or four highlighters on each car, that can help colour in the model and the brand for customers.

‘To help this, we’ve been sending out booklets – A to Z of Mazda – and also helping dealers at training events,’ he said.

Dealers, for example, were told the Mazda 2, above, is 200kg lighter than a Peugeot 207. This has benefits for handling and driving fun. And to portray this, Mazda laid on a standard Mazda 2 for dealers to drive – plus one with two bags of sand in the back, for them to feel the difference.

RICHARD AUCOCK

Breckland signs up dealer THOSE mourning the loss of TVR and Marcos may have a two-seat 6.0-litre V8 roadster alternative – the Breckland Beira. And getting hold of one has now become a little easier as the manufacturer has just signed up a new dealer.

Dream Machines of Heathfield, East Sussex, is the latest appointment for the Norfolk manufacturer, which has designs on further expansion in the UK and Europe.

Dealer principal Tony Waite said: ‘From our long experience representing marques in this sector, there is a healthy demand for high-quality, limited-production, two-seat sportscars.’ The 155mph car is based on the Opel GT platform, the ‘Vauxhall VX220’ replacement that isn’t coming to the UK.

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dashboard

Volvo aiming for four per cent market share Product manager tells Richard Aucock why Volvo sales are on the increase

Rapp Marketing Is now the time to mystery shop your own dealership?

I

n the current economic climate, with sales enquiries becoming increasingly valuable, it’s important to ensure your team responds promptly and efficiently to all leads, especially emails. Now is probably a good time to ‘mystery shop’ your employees to make sure you’re providing prompt responses and not missing out on deals.

According to a recent survey conducted by Motors.co.uk, out of 134 dealers who were emailed with an enquiry, 74 per cent (99 dealers) responded to the first email.

The average (mean) response time for the 99 first-send responders was 13 hours and 32 minutes, with only 28 dealers responding within three hours and the slowest responding in 136 hours and 27 minutes.

Motors.co.uk has some tips to help ensure your team are making the most of their enquiries. Here are a few of them.

Be positive about relevant stock available and give the customer the option to part exchange, but don’t mention an exact value at this stage until you have further details.

Responses to emails should address all questions asked by the customer so be sure to comment on the level of detail they have provided. Better still, try to get the customer to agree to an appointment at your dealership to discuss their needs further.

Make sure you record a name and a contact number for the customer and ask when is best to contact them – your sales team then have the green light to take control.

Set up an automated reply service so customers have peace of mind and know their email has been received and is being dealt with.

Limit your follow-up emails to no more than three so the customers don’t feel pressured or their privacy intruded upon. And always refer to your website address in the email. Better still, send a link to the cars which you have available.

Plus, respond to all enquiries – you can’t be sure from one email which leads will turn out to be profitable so treat all of your responses equally until you have more detail from the customer.

‘You can’t be sure from one email which will turn out to be profitable so treat all of your responses the same.’

VOLVO is aiming to double its market share in the UK. That’s the word from the brand’s product manager, Chris Wailes.

He was speaking to Car Dealer as the brand celebrated huge increases in like-forlike sales. January-to-June volumes grew by a fifth, to more than 21,000 units, and are continuing to do so.

‘There’s nothing stopping us growing market share,’ he said. ‘We have 1.6 per cent – what’s to say we can’t get it up to three or four per cent?

‘We certainly see growth opportunities if the product is right. We’ve seen this with the C30 – bringing in the R-Design model has led to a massive jump in sales.’

Wailes wants to aim for a stable two per cent share in the near future, then for a sustainable three per cent in time. But his goals are higher still.

That TV ad, with the white C30, has also brought people flocking to dealers, he says.

And while the three-door hatch won’t suit all, the fact Volvo can offer R-Design S40s

and V50s, also in white, has been paying dividends. It was a bold campaign for the maker, but is working: ‘It’s getting people into showrooms. Once there, dealers can do their work,’ he said.

Wailes says this part isn’t rocket science.

‘Dealers simply have to listen to what the customer’s telling them.’ A former dealer himself, Wailes knows what it takes to sell cars – to happy, not bamboozled, customers.

‘Just work out what they want.’

Safety features are proving particularly enticing, says Wailes – who plans some intriguing ways for dealers to demonstrate this. Take the £1,300 Active Cruise Control on the XC60 with low-speed auto-braking function. ‘Wouldn’t it be great if dealers could demonstrate this by getting customers into an XC60, then driving it up to a parked car?’

Yes, it’s yet another MINI to tempt buyers NO, your eyes are not deceiving you, this is yet another derivative of the MINI. Like a mongrel that’s suffered from too much inbreeding, this is a MINI, SUV-style.

Shown at the Paris Motor Show, the ‘concept’ part of the model’s Crossover Concept tag is something of a misnomer, for this is essentially 2010’s MINI Cross. A little larger than a Clubman, the concept shows how the chunky, tough-looking SUV can be made socially acceptable, and thus an absolute must-have with custom-

ers. Shame it looks like it does…

Dealers, though, will likely have people queuing up to place orders well in advance when they see this baby up close. It’s the first four-door MINI, with four individually-sliding seats and yet more practicality inside. The interior is also unique and highly bespoke, with an innovative ‘globe’ in the middle of the dash for sat nav and other functions.

A four-wheel-drive platform will enhance on-road handling as well as muddy field capability too.

Who is Helen Rapp?

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

For details of the services Motors can ofer motor traders you can call 0845 265 5502

16

CarDealer

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dashboard

Honda chief loves Jazz ...and UK boss tells us there are open points available across Britain

Keir: Pleased with Jazz residuals

HONDA supremo Ken Keir says the Jazz is playing the right notes for residuals – to the tune of 37 per cent value after three years and 60,000 miles.

This is superb for the sector and the UK managing director says the new model will be even better with 40 per cent not out of reach in the future.

‘We are moving more and more towards a premium customer experience and we are getting a lot of buyers in the UK,’ he told Car Dealer at the launch of the new Jazz.

‘Building in Britain is part of the pride issue. It all rubs off across the range. The space factor is crucial too and here we are getting bigger all the time and it ties in with

our older customer profile.’

All this should help to give Honda – with 106,000 sales in 2007 and something like 110,000 registrations come the end of the year – well over four per cent of the UK total market.

And if you want to get in on the act, the UK boss revealed there are still open points across the country.

‘These are in south London, Hertfordshire, The Borders, Wales and Ulster,’ said Keir who also revealed that a number of sites are owned by Honda.

‘In total we own about 30 locations and there are another 30 with an upfront lease and these have been going well for the last eight years.

‘We try our best to get a good spread of family dealerships as well and the future is looking good in terms of evolution.’

RICHARD GIBBON

SsangYong reveals new compact SUV

SsangYong is unveiling a new model, to the undoubted delight of UK dealers. The compact SUV crossover vehicle debuted at the Paris Motor Show.

The company says the model is the first front-wheel-drive SsangYong, and also the first to use car-like monocoque construction.

Under the bonnet, a 2.0-litre turbodiesel, pumping out 175bhp promises impressive performance and there’s full-time four-wheel-drive too.

The name’s even pretty good – C200. A key element of SsangYong’s mid and longterm strategy, no launch date has yet been announced.

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18

a service from

CarDealer

‘We steer buyers to you!’

Sell cars online at

Sell more cars. Over 2.9 million visitors per month. Track leads.

Brand showcase. Link to your website. Content on 100 other websites.

Take control. Sell on the worldwide forecourt.

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

You take the wheel ™

dashboard Focus wins Used Car of Year accolade

FORD’S Focus is the Used Car of the Year, according to Auto Express and Glass’s. The family hatch snared top slot as Ford took home a hat-trick of awards in the honours.

The Focus also won the compact family car category, while the previous generation Mondeo was rated best family car.

Other victors include the Mercedes CLS taking the large exec car prize, and Hyundai winning the used car scheme gong.

Worried buyers push up warranty sales SALES of extended warranties are up, as people hold on to their cars for longer. Car buyers are still worried about the unknown and they want to avoid major expense, which means profit opportunities for dealers.

Warrtanty Direct says people would like to follow a three-year change cycle, but economic conditions mean they feel they can’t – hence, more warranty sales.

For daily news updates, editor’s blog and our job search engine visit cardealermagazine.co.uk

BOYS with new toys – that’s how Ford chiefs are describing their retail network. With the Kuga, refreshed Focus, Mondeo, and now all-new Fiesta, in showrooms – Ford dealers up and down the country are looking forward to a boom in sales.

‘There have been five different versions of the Fiesta since the original appeared.

It has been a Euro best seller for 32 years with more than 12 million customers and is a true global vehicle. Now it is even better and dealers are really excited,’ explained Darren Palmer, product development project manager for Ford in Britain.

‘Dealers have had big changes to contend with such as the Focus, Mondeo and the new Kuga, and Ka coming soon. These are exciting times for our network in this country.’

His optimism for the new B-Segment baby which will cost from just £8,695 – £155 less than the outgoing equivalent – comes at a time when Ford boasts more than 15 per cent of the UK market.

‘The New Fiesta is a premium feel, larger car with new levels of trim and safety plus lower insurance. That is the essence of its appeal to dealers and customers alike.’

His forecast for the Fiesta is shared by Ford’s marketing director Mark Ovenden: ‘The all-new Fiesta is set to take Britain by storm. Customers are excited about the technology, style and economy.’

Even more ebullient is Martin Smith, executive director of design, who added: ‘We have had tremendous feedback for Fiesta.’

New Fiesta road test, p31 Sales Legends, p38

Boys’ new toys

Ford is busier than ever with new models and its dealer network couldn’t be more excited

C3 Picasso joins sector tipped for major growth CITROEN is the latest maker to join a car sector Car Dealer tips for major growth over the next few years.

The C3 Picasso, below, made its debut at the Paris Motor Show and will be launched in 2009. It is the latest entrant into the expanding mini-MPV sector.

Sure, the Renault Modus – arguably the first mini-MPV – hasn’t really been a hit. But more

well-developed models such as the Vauxhall Meriva and Nissan Note have proven the sector has legs. It is now emerging as one many major European manufactures are targeting. Buyers are those seeking more practicality than a supermini, who would like a people carrier but also want something compact and, crucially, not as expensive as a Focus-sized family hatch.

The C3 Picasso is similar

in length and width to a supermini.

This is particularly appealing to women, who’ll adore the extra flexibility just as much as the easy ‘park-ability’.

Other attractions include a Mondeolike 500-litre boot (boosting to an estate car-challenging 1,506 litres), good fuel economy and low emissions: the family-friendly Citroen produces as little as 125g/km of CO2.

This alone could help ensure the sector thrives in the coming years. It’s definitely one to watch.

“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

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CarDealer

Take the wheel and shift enquiries up a gear.

Sell online at

You take the wheel ™

How can motors.co.uk steer car buyers to your dealership?

An estimated 4.9 million car buyers in Britain are using the internet to find their next car.

Question is, how can dealers hope to find them? A dealer’s website with wellphotographed, up-to-date stock, will help sell cars, but the large majority of buyers are unlikely to view it.

The answer is simple. Load your vehicles on to motors.co.uk and they will be automatically displayed on 100 websites including: • motors.co.uk

• The Independent

• Daily Mail

• Desperate Seller

• Yahoo! Cars

• Top Gear

• Teletext cars

• Fifth Gear

• Carsource

• Cars By Mail

• Orange.co.uk

• Parkers.co.uk

The top 10 dealer groups advertise on motors.co.uk – so it isn’t it time you thought about joining them? Here we answer some questions you may have about motors.co.uk.

1. Can I afford to advertise all my stock?

Yes. Incredibly reasonable rates mean you can advertise across the Motor’s network for an entire month for less than some other sites charge to advertise for a week.

2. Will my stock be on popular sites where the crowds are?

Definitely. The Motors.co.uk network has 2.9 million visitors per month and is backed by the Daily Mail General Trust, so it has national coverage and local strength in Northcliffe regions.

3. What is the quality of the audience on motors.co.uk sites?

High. Targeted online marketing and heavy print advertising campaigns enable motors.co.uk to deliver a more affluent, mature car-buying audience.

4. Okay, so it shifts cars, but will it build my brand?

Yes it will. Motors.co.uk offers you a bespoke page which reflects your whole business as well as our core business: delivering sales enquiries. You can also promote your brand, alongside your manufacturer, in your area with our ‘Brand Showcase’.

5. Can I track leads?

Yes, and easily. Our tracking system tracks phone calls, email leads, visitors and instant messages.

6. Is there any I.T. hassle setting it up?

No. Motors.co.uk takes stock feeds in almost any format from your DMS or aggregator such as, Trader Desk or Dealer Edit. We can even arrange for photos to be taken for you.

7. Will it shift sticky and specky stock?

No problem. We can reduce the price instantly to shift cars before they go over age. We also show the full spec including options of every car.

8. Can you show me the return on my investment?

Of course. Because Motors.co.uk tracks your enquiries, it’s simple to work out how much each lead costs.

9. But will it drive visitors to my website?

Absolutely. From Motors.co.uk and across our network you’ve the option of a link from our website to yours. Also, you can buy car to car clicks which take people directly to the car on your website.

10. Surely I need to advertise at more than one place online?

Dead right. Your stock won’t just be listed on Motors.co.uk, we’ll also promote it on Yahoo! Cars, Carsource.co.uk, Carsbymail.co.uk, Teletextcars.co.uk, Fifthgear.co.uk, Desperateseller.co.uk, the ‘This Is’ sites, Topgear.co.uk, Orange.co.uk and Parkers.

Sell more cars. Over 2.9 million visitors per month. Track leads. Brand showcase.

Link to your website. Content on 100 other websites.

Take control. Sell on the worldwide forecourt.

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

the insider

Young, gullible & stupid!

I

t’s the same in any trade when you’re an apprentice – you find yourself the butt of everyone’s jokes, the first in line for all the crappy jobs and the worst paid person in an entire workforce.

Yet despite their gullibility when it comes to sourcing left-handed screwdrivers and paint rollers to match, I’ve a great deal of affection for anyone who has worked their way up from an apprenticeship in any business.

Part of my reason for respecting them is that I, too, was once an apprentice. I know you might find it hard to believe given my obvious sharpness of wit and business acumen, but back in the days when Britain still had a fully operational indigenous motor industry, I cut my teeth selling new cars through a dealership owned by the lumbering nationalised corporation known variously as British Leyland, BLMC, Leyland Motors or Leyland Motor Holdings (it depended on whether you were a debtor or creditor…)

My boss was a jovial Midlander, who had worked his way up to DP of the company’s flagship site in Coventry. He frequently tried to catch me out with evil practical jokes, but only on one occasion do I remember him turning nasty, and in truth, he was perfectly justified.

It was a Friday morning, and I’d spent the previous night asleep in the boot of a Rover P5. I’d been for a few drinks with a mate, was in no fit state to drive home and figured it would be both cheaper than a taxi and safer, in terms of guaranteeing I wouldn’t be late for work. The boss never found out about my evening’s domestic arrangements, but what he did know was when I rolled into work I wasn’t my usual fresh self.

Realising I was best hidden away, he sent me out the back to work on a vehicle that, the following morning, was due to be picked up by the local mayoress. My job was to set up the carburettor to make sure the car was running properly. Thing is, the car was a Triumph 2.5 PI estate – which the more time-served among you may recall was the meaty one with the 150bhp TR6 engine and Lucas Fuel Injection.

After a two-hour snooze in the workshop, I returned to my boss looking much healthier, so when he enquired about the carburettor I

22

‘I was lucky to avoid hitting any other vehicles, but buried the nose of the Triumph in two big metal dustbins, wrecking the car.’ told him it was all sorted and the car was running as sweet as a nut.

That was when he exploded. How was I to know, in those early days of fuel injection, that the damned thing didn’t even have a carb? He’d caught me out and rather bluntly explained that if I didn’t stay on for at least three hours to clean and tidy the workshop, then there’d be no point in coming back the following morning.

The story doesn’t end there, though.

Once my boss had knocked off at 5.30pm and I was supposedly staying back for three hours, temptation got the better of me. As an irresponsible 19-year old, I couldn’t resist finding out what the mayoress’s 150bhp Triumph had to offer, so I decided to take it round the block and find out.

You’ve probably guessed what happened next, but if you haven’t, let’s just say it involved an unfortunate imbalance between what I perceived my driving skills to be, and what they

actually were. I was lucky to avoid hitting any other vehicles, but buried the nose of the Triumph in two big metal dustbins, wrecking the nearside wing, bumper and one pair of headlights.

Just 14 hours later, Ma’am was due to pick up her new motor. The problem was, I loved my job and didn’t want to lose it, so I called a few mates, all of whom were motor industry apprentices themselves.

To this day, I owe them all a huge debt of gratitude, as we worked through the night to rebuild the front end of the Triumph. By 6.30am, the car looked as good as new – I just hoped my boss wouldn’t notice the smell of paint, nor that the workshop hadn’t been tidied.

He didn’t. I still have the newspaper clipping from the local rag with two pictures of the mayoress at our dealership – one where she’s leaning against the nearside front wing for the cameras, and another where she’s walking away with a streak of still-tacky Trafalgar Blue up her dress. Great days…

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

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

car dealer ewards

Re: Latest entry Subject: Franchised Dealer URL: citygatevolkswagen.co.uk There are only days left to get your website entered for a gong in the Car Dealer Ewards in association with Motors.co.uk. Here we take a look at one of the entries

T

his month’s featured entrant in the Car Dealer Ewards in association with Motors.co.uk has one clear aim – to be the best in its class. It’s a bold target and one that Citygate is hoping will be proved right as the judges look for a winner in the Franchised Car Dealer Website of the Year category.

Simon Bennett, marketing and communications manager for Citygate, told Car Dealer the VW dealer group had a clear plan when it came to designing the site.

‘The principle objective for the website was to take it from an online sales brochure to an interactive communication hub for customers,’ explained Bennett.

‘We were determined to make our site highly relevant, informative and timely to ensure customers return again and again. With the increasing prevalence of internet use, it is perhaps no surprise that we sought to make our website the best in class.’

A plan was formulated before inception and sticking to this has helped Citygate come up with a smart site. A super slick, interactive bar with images scrolls through the latest deals on the homepage while flash pictures highlight other offers at the top of the page.

There’s even a scrolling news bar with the latest stories for motorists as well as the option to

book a service online and search for a used car from the homepage.

‘A crucial part of our plan was to make navigating the site clean and simple,’ adds Bennett. ‘Several main sections were created, the contents of which are clearly visible on the home page. The new cars section not only has information about current models and finance options but also lets customers book a test drive and learn about the latest concept cars from Volkswagen.

‘Booking a service is simple, with a choice of events and locations. But the piece de resistance of the aftersales section is the Citygate4Life members’ area. Here, after logging in, customers are taken to their own micro-site giving details of their vehicle’s service history, membership special offers, new benefits and much more.’

Clever stuff indeed, and the site’s proved its worth by making a real difference to the com-

pany’s bottom line.

‘In pure financial terms, the site provides an additional income stream of about £8,000 per month, but it is the customer engagement that is of far more importance,’ explained Bennett.

‘Traffic to the site has more than doubled, with more than 500 visitors every day and, importantly, 60 per cent of these visitors are spending more than two minutes on the portal.’

It’s certainly impressive stuff – and our judges liked it too. Katie Armitage, marketing manager for Ewards headline sponsor Motors.co.uk, said: ‘The Citygate site has nice, clear navigation and the contact details are very prominent. It has a logical and simple car search engine and some great pictures of cars. We particularly like the car

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

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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

L en chan ast ter ce ....get entries in by OCTOBER 17 Ew to ard s!

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.’

You better be quick!

Citygate’s website is packed full of offers and adds £8,000 a month to the dealer’s bottom line

of the day idea. Our only problem when using the site was that we found some of the “new cars” left-hand navigation panel jumped around a bit after rolling over the model range link, but overall the Citygate portal is a nice site.’

We also asked judge Peter McCullough, CAP’s business development director, to cast his eye over the Citygate entry.

‘Visually and technically the site works well and holds up in all modern browsers, reinforcing brand values,’ explained McCullough.

‘The home page is dominated with a collection of offers, but all areas are quickly available with almost a single click in every

case. There’s a good consistency throughout the site and I like the excellent user experience on the online service booking process.

‘The used vehicle search areas are fast and effective, with good images, though it was not possible to search for a specific derivative. The big weakness of the site is the lack of detail provided on the used vehicles – no environment, running cost or fuel performance figures and little specification or optional extra details – so vital on a used vehicle.’

The Citygate offering now goes forward with the other entries sent in this month to the short-listing and judging phases of the Car Dealer Ewards in association with Motors.co.uk.

If you think your website rivals the Citygate offering, there is still time to get your entry in. We’re excepting entries right up to 5pm on OCTOBER 17 so make sure you’ve emailed by then. For more details see the panel on the right.

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

T

ime is running out to get your entry in for the Car Dealer Ewards in association with Motors. co.uk. In 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: n Independent Car Dealer Website of the Year n Franchised Car Dealer Website of the Year n Special Web Achievement Award n 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 McCullough

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

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forecourt

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s k r t a o p mthe s

CarDealer

Two seats, no windscreen, made out of plastic. Is this the recipe for motoring perfection? KTM thinks so...

U

nless you’re a fully paid-up member of the biking fraternity, there’s a very good chance that you’ve never heard of KTM. If, however, you are aware of Austria’s only – and therefore biggest – motorbike manufacturer, you’ll know that it made its name in the mucky world of motocross before branching out into the kind of circuit racing you see on the telly every other Sunday. And we’re not just talking about taking part here. KTM has excelled in every branch of two-wheeled

CarDealer

motorsport it has entered and thanks to some canny marketing in recent years, has a roadgoing range that enjoys substantial waiting lists.

With a track record like that, it’s not surprising that KTM bosses felt the need to branch out from its core business. With motorcycling coming under increased pressure from European safety zealots (who would much rather we all drove cars), KTM figured that a four wheeler could be the way forward.

Rather wisely, they decided to call in a few mates to help with the design and engineering of the X-Bow. The looks are the work of Gerald Kiska – an Austrian designer who has penned everything from golf clubs to motorbikes – while the main chassis, or ‘tub’ in KTM-speak, is the work of renowned Italian racing car builder Dallara. The engine is an off-the-shelf Audi 2.0-

litre turbo unit, while the supension and brake components are sourced from the very best names in the business.

Looking like the lovechild of a Formula One car and the Batmobile, the X-Bow is jaw-droppingly handsome in the flesh. Short, wide and low, it makes a Caterham look like a school project. Essentially a composite tub with everything else hung off the sides, the X-Bow is about as close to a racing car as you’re likely to get for under £100,000.

The engineering is exquisite. From the stainless steel fasteners to the bespoke arms that carry the wobble-free mirrors, the X-Bow has the kind of detailing usually reserved for Formula One cars. It’s also substantial. The delicate-looking carbonfibre running boards, for example, are designed to be stood on when getting in and out, while all the winglets, fins and air-ducts that dominate the rear end feel incredibly solild.

Climb aboard and the racing car theme continues, albeit with one or two concessions to the real world. The X-Bow has a fixed seat (if you can call an inch-thick plastic foam >

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forecourt moulding a seat) so you have to move the pedal box and the steering colmunn to create the perfect driving position. The latter slides back and forth on a small carbon fibre sled and allows drivers of all shapes and sizes to get comfortable. And we’re not just talking about tall racing drivers here, we’re talking about six-footers with a pie belly and size eleven feet.

The ‘dashboard’ consists of nothing more than a wedge-shaped LCD display taken from one of KTM’s roadgoing motorbikes, while starting up requires little more than a prod of the waterproofed rubber switch on the centre column.

The X-Bow has a keyless-go system that negates the need for a traditional ignition barrel that would normally be at the mercy of the elements.

As mentioned earlier, it’s attention to detail like this that makes the X-Bow a truly special car.

Click the four-point seat harnesses into place and you’re ready for the off. And the first thing that strikes you is how easy the whole process is.

The clutch is light, the throttle is easy to modulate and the brakes have the same progressive feel you’d get in a normal road car. And while the mechanical clatter from the 240bhp fourcylinder turbo is quite the soundtrack you expect to hear, the gearshift is well-weighted and a doddle to master. In other words, any idiot can jump in and feel like a Formula One legend.

Pick up the pace and you can really start to appreciate the work that has gone into the X-Bow. With just 790kg to move around, the engine makes light work of acceleration, while the massive brakes scrub off speed with breathtaking efficiency. But it’s the chassis that impresses the most. The steering is fast, direct and brimming

with feedback while the ride is exceptionally civilised for such a performance-biased machine.

The balance is superb and the confidence it inspires makes you love it more with every corner that you dispatch. Even on the slimy Welsh roads and diesel-smeared roundabouts of our test route, the KTM never felt anything other than planted to the road. It is, quite simply, one of the most entertaining cars money can buy.

Of course, there are downsides to the X-Bow. There’s no concession to bad weather and unless

you’re a biker (and therefore used to it), the constant battering your head gets at 70mph, may come as a bit of a shock. It’s also a lot of money. Although prices start at £46,041, our test car was fitted with a host of options that pushed the price up to an eye-watering £81,132.

However, when you factor in the build quality and the fact that it can out-sprint and outhandle virtually every supercar in the world, the X-Bow starts to make sense. Just don’t forget your waterproofs.

MIKE ASKEW

KTM X-Bow Price: Engine: Power: 0-60mph: Max speed:

28 28

£46,041 2.0-litre turbocharged 240bhp, 310Nm 3.9 seconds 137mph

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Ford Fiesta £12,595

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P

rivate buyers. If you’re a franchise, you love ’em. Particularly if you’re one selling Fords – the Fiesta is the car more people spend their own money on than any other. Your excitement will be off the scale right now, too; the all-new model is starting to arrive by the transporter-load – and it’s brilliant.

Car Dealer has thus been over to Italy, for a fullon two days behind the wheel of what could well be this year’s most important new car. So what were our first impressions as we stepped off the plane to be greeted with a set of keys to a petrol three-door? It looks blinding. This could well be the best-looking supermini on sale, with proper athleticism and the sort of creases and curves makers usually reserve for coupes.

It’s a similar story inside, where the dash has a really modern and stand-out look to it. Ford has modelled the button layout on mobile phones, and it works well, looks good, and is logical. It complements fundamentals including a spot-on driving position (love the high-set gearlever and steering wheel placement), decent rear space and a 295-litre boot, the biggest the Fiesta’s ever had.

Indeed, it’s a fair bit more practical inside, given that it’s not that much bigger on the outside. Part of the reason for this growth control is to cap weights – the new model is actually lighter than the old. This, along with massive improvements to engine efficiency, means big improvements to economy. Most petrols nudge 50mpg, the diesels do well over 60, and there’s going to be an Econetic version that returns a remarkable 76mpg.

CO2 emissions should be below 100g/km.

CarDealer

Seller?

It won’t be long before this goes straight into the number one slot in the sales charts – probably. Meet the new Fiesta Best-sellers are expected to be the 1.4-litre petrol, and the 1.2-litre, which now comes in 82bhp guise, as well as cheapo entry-level 60bhp form (Ford expects few to buy the Studio, though: ‘not even fleets’).

We were lucky enough to try the only all-new engine, though – the 1.6-litre petrol, with variable valve timing pushing power up to 120bhp.

This is a corking unit, smooth and free-revving, with vim like few Ford four-cylinder units.

There’s a kick at high revs, it buries itself deep into the red-line, willingly, and is racier than the 9.9 seconds to 60mph dash suggests.

That’s probably because handling is plain brilliant. Ford knows how to make cars drive well, and the Fiesta is no exception. Even the

basic models are sporty, composed, incisive and rewarding, never mind the tuned Zetec S. Yet while that car can show ride stiffness, standard models display big-car smooth-running over bumps. It’s a cut above almost every other small car.

Ford is really on to something with the new Fiesta. It’s kept prices under control, launched a clear and logical range of trims and promised running costs below that of the outgoing model. You really can’t say fairer than that.

The company wants to keep hold of its leading retail position with this car. On first evidence, we suspect it’ll find the challenge not all that onerous.

Sales legends... the original Fiesta, p38

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TM

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forecourt

th eaven

H

igh-profit luxury cars are great business.

Amazingly, sales can even increase in bad times as many are bought as chauffeur cars. That’s why BMW expects to sell 2,500 new 7-Series in a year. And we can’t see why not – the latest model is an exceptional car.

We’ve come away amazed after driving one of the first off the production line. After the shock of the 2001 model, fears fade right away when you set eyes on it. Yes, the look is still related to one of Chris Bangle’s first and most controversial BMWs, but it’s immeasurably more elegant and cohesive. The interior, too, is decadent, inspired by luxury hi-fis, not video games machines. And that’s despite a feast of technology including world-first on-board internet. Dealers will delight in showing off Google searches in the showroom; particularly as the customer can, right away, take over themselves. That’s right. Completely overhauled iDrive is now child’s play to operate.

Behind, there’s ample room even in the standard model, never mind next year’s longwheelbase version. That will get air suspension, in the interests of ride quality. Let us tell you,

No Chris Bangle shocks here as BMW reveals a toned-down 7-Series replacement. Richard Aucock reports from the luxury limo’s launch

it barely needs it. Even the standard car has a magnificent, magic-carpet ability to absorb the bumps. It’s right up with arch-rival Mercedes’ S-Class.

But the Merc doesn’t handle anything like this. BMWs always steer tremendously, and the new 7 is no exception. Indeed, turn the computer-controlled suspension from ‘Comfort’ into ‘Sport’, and it’s like a 3-Series; front-led, agile, precise, super-stable, balanced and controlled. You can’t believe such a large car can be this dynamic.

It’s even more agile if you choose rearwheel steering – but interestingly, the biggest benefit here is to rear passenger comfort. As the rear ‘turns’ through corners, rather than ‘rolls’, those in the back are jostled about less.

It will be a must-tick option for chauffeurs.

Another must-have is the 3.0-litre turbodiesel. With 245bhp and nearly 542Nm of torque, this is a bit of a beast. The 60mph sprint takes 7.2secs, and it won’t give out (when in Germany, of course…) until 145mph. Yet it also

returns 39.2mpg, easily the best of any luxury car. Sub-200g/km CO2 emissions are bang on for company car tax, too.

The only slight jink in the 7’s repertoire is the six-speed auto – it is jerky at times, and really needs the forthcoming eight-speed auto. The diesel also sounds ‘dieselly’ at times – not a disaster, as it’s very smooth, just not as sophisticated as the rest of it.

Prices start at £54k; you can go up to nearly £70k for the staggeringly fast 750i turbocharged V8. And, while 85 per cent will limit themselves to the diesel engine, many will choose a welter of options in the process.

Think of the margins!

Despite what you may think, it could actually be a good time to launch a luxury car. Particularly when that car is, in our opinion, the best exec express money can buy.

BMW 7-Series £54,000 CarDealer

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forecourt

TCharge aking

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CarDealer

Electric vehicles haven’t caught the imagination of the buying public – but the new Tesla supercar might just change all that

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e’ve driven the future… and it’s three-pin plugshaped! In years to come, supercar owners won’t be zooming to the filling station, hob-knobbing with the hoi polloi as they sink yet another £150 of super unleaded into a bottomless tank. They’ll be molly-coddling it in their garages, polishing and cosseting it like a baby – then, before putting it to bed, plugging it into the wall, ‘filling the tank’ ready for another day of high-speed thrills.

This is the vision of Tesla, whose electric-powered Roadster Car Dealer was among the first in the UK to drive. An electric-powered sportscar is the premise, and for those of you thinking invalid chairs and milk floats, here are two stats: 0-60mph in 3.9secs and a range of more than 225 miles.

This is a superfast supercar, and a super-useable one, too – as it should be for £92k. Powered by the same battery technology that ensures mobile phone cells are both tiny and everlasting, the Tesla is the world’s first high-performance electric car, and innovative in as many ways as the Silicone Valley-based company itself is.

You may know that the Roadster is closely related to the Lotus Elise. In the back, instead of a Toyota engine, there’s a 250bhp motor, 53kW battery and an inverter. Bespoke bodywork is carbon fibre but the aluminium chassis is closely related. The interior, save for more leather and carpet, is virtually identical. But there is no gearlever, or clutch pedal.

There is an energy display next to the driver’s knee, but no conventional fuel gauge. Or a fuel tank. Or an exhaust. Or, alas, the class of a similarly-priced Aston. So what exactly are customers paying for?

Environmental flag-waving, that’s what. This is a zero-emission car, that rabbits will be cheering from the hedgerows, rather than coughing on the fumes. For the rich fund manager, who’s made a killing on investments in environmental stocks, it’s the only way to splash a green corporate image while still having fun. A Tesla is, of course, silent. This will be an issue for many, who’ll miss the blare of a rorty V8. Anyone who’s heard an Aston will mourn for that. But in the future we may not have the oil to indulge in this.

The Tesla is, instead, a taste of what’s to come, what we’re going to have to get used to. If they can dial out the clunks of the aluminium chassis, reduce the wind noise and jazz up the stereo, they may be on to something.

Because the performance of this car is incredible. Like all electric cars, it gives its all immediately – a stonking 379Nm of torque comes in at 0rpm. But here, there’s 250bhp to play with, too. In a car that, even with batteries, is bantamweight, the effect is sensational. It simply flies, the very nanosecond you press the accelerator.

The light, feel-packed chassis and steering are as great as they are in the Lotus, but it’s the rollercoaster-like response of the engine that really does it. The Roadster is like an electric shock (excuse the pun), but incredibly controllable with it. Really, it makes all but the fastest supercars feel a bit slothful. It’s quite bewildering.

Some 250 of this launch edition will be sold, before the series model arrives in 2009, for around £88,000. The single, Tesla-owned dealer won’t be in place until 2009, but orders can be taken now. The £92k list price might seem dizzy, but don’t overlook the Tesla – it genuinely is the future.

RICHARD AUCOCK

CarDealer

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cult cars

Porsche 911 GT3 Ok, so we might have featured the GT2 only last month, but here James Baggott explains why he prefers the original 911 GT3

B

ack in 2003 I was working for a wellknown national motoring magazine.

It was my first job writing about cars full-time and I loved it.

Well, when I say writing about cars, what I really mean was writing about the things that bolt on to cars. You see I was employed as the gadget geek, spending most of my time rehashing press releases about wiper blades instead of playing in supercars at a test track.

You can probably imagine it got pretty dull at times. Don’t get me wrong, I love a good gadget – still do – it was just penning piece after piece on polish got a little trying. So, much to the annoyance of my superiors, I’d try anything to get out on a road test.

One particularly dull Wednesday I got wind of a feature the road test desk were concocting – I can’t quite remember the premise, but it involved pitching a kart against a Caterham

and a Sinclair C5 (which was spectacularly crashed. Yes, that is possible…) versus something so dull I can’t remember. But the one that pricked my ears up was a 911 GT3 versus a Suzuki GSX-R1000 superbike. Being as mad about bikes as I am about cars this was close to being a dream day out of the office. Somehow – and I still can’t quite see how – I managed to wangle myself along.

The test was held at Bruntingthorpe Proving Ground, a former American airbase for long-range bombers, where we had access to a two-mile runway. The idea was to max the GT3 and the bike and see which was faster.

Tough job, but someone had to do it… As the only mentalist on the staff with a bike licence stupid enough to pin the thou in the damp I trundled out on to the concrete track, nailed the throttle and gripped for dear life. As the speeds rose above 150mph, the sidewinds

whipped the bike from side to side with such violent force I swear I saw Death himself.

Eventually the amber Gixxer topped out at an incredible 187mph and I got off – shaking.

Being the bike pilot for the day meant I had few chances to try the other cars, so it wasn’t until the pictures were in the can that I managed to snatch the keys to the Porsche.

Stepping off the bike, it was hard to imagine anything with four wheels could feel as quick.

But the GT3 did. Coming out of the long, sweeping right on to the runway the Porsche was pulling like Calum Best. In seconds it had cracked 125mph – the mark one GT3 covers a quarter mile from rest in 12.3 seconds and hits 60mph in four dead. It wasn’t long before silly figures were registering on the digital speedo: 164mph, 179mph, 184mph… and then, at full steam ahead, 1-9-2mph. Unbelievable.

What wasn’t made clear to me before jumping in was that at those sorts of speeds, fuel economy is, well, pants. The GT3 was draining its tank at a fair old rate, but I was having too much fun to notice the tell-tale coughs and splurts… As the power was suddenly sapped while attempting my third ‘v-max’ halfway down the runway, it quickly dawned on me I’d run out of fuel.

Feeling a bit sheepish the car limped to the side

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36

CarDealer

‘Feeling a bit sheepish the GT3 and I limped to the side of the runway and I waited for the wrath of the road testers.’ of the runway and I waited for the wrath of the road testers (fearsome) – but that still couldn’t stop me grinning like an idiot. It’s only cars like the GT3 that can have effects on you like this.

So, when CLUBGT – a supercar members’ club that takes the hassle out of owning these exotic machines in exchange for an annual fee – called and offered the chance to relive that memory, I jumped at the chance.

CLUBGT’s Porsche, like the one below, is a stunning example. Despite 50,000 probably very hard miles under its belt, it is in beautiful condition – the interior still fresh and the driving experience as raw as I remembered it.

Porsche introduced the GT3 to give petrolheads an undiluted driving experience like never before. Pretty much all luxuries were junked; as was most of the sound deadening and even the rear seats.

Buyers could even choose a no-cost Clubsport option that added a roll cage, fire extinguisher, and six-point harness to the bucket seats – this was, without doubt, a full-blown racer for the road.

Driving the GT3 on the road for the first time is an incredible experience. It’s small, ultra low and packed with explosive power. Some 385Nm of torque is available from just 2,000rpm with peak power an incredible 381bhp. And that stomp is truly intoxicating.

Threading the Porsche through the arterial roads that bisect the heart of Hampshire is an experience that came very close to matching that first Bruntingthorpe encounter. It is ferociously quick and devastatingly effective travelling at speeds that could put you in prison. This is a car for the track, but still thoroughly enjoyable on bumpy B roads. It’s here that it’s alive, steering wheel jiving around in your hands, with every bump felt through the seat of your pants.

This is a driving experience that’s raw – steak tartare raw – and all the more delicious for it.

Every month this Cult Cars column shows how you can fund machines like this using Bridford’s financial services. However, it wasn’t until I saw this month’s figures (below) that I seriously considered selling the house and spending the mortgage payments on one of these instead.

However, if you’d like the chance to experience a GT3, as well as a host of other equally amazing machines like the Lamborghini Gallardo, Ferrari 355 or Lancia Delta Integrale, contact CLUBGT on 020 7935 8485. Membership starts from £4,675 per year and for a limited time the £500 joining fee has been wavered.

See page 68 for the details. Right, I’m off to contact estate agents….

Porsche GT3

Price: £84,995 Engine: 3.6-litre, flat six Power: 381bhp, 385Nm 0-60mph: 4.0s Max: 195mph Now finance one with Bridford: Option 1: £20,000 deposit, 24 x £449.95, plus final payment* Option 2: £8,500 deposit, 48 x £1,095, plus final payment*

*The above options are specifically for applicants who do more than 2/3rds business mileage, limited companies or high net worth individuals. Contact Bridford for a written quotation and full terms and conditions.

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37

sales legends n 30 years and a th re o m r fo tion’s favourite e world. Car It’s been the na ave found homes around th ini star h over 12 million k at the birth of Ford’s superm ac Dealer looks b

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ou can’t have missed the launch of the latest Fiesta. Ford is undertaking perhaps its most co-ordinated campaign yet, incorporating TV, radio, internet, even local pubs and clubs. It’s the culmination of a process that started this time last year, with the unveiling of the dramatic Verve ‘concept’. Which, we now know, was actually the Fiesta, all but production-ready.

But such tricks aren’t new for Ford. Back in 1976,

38

it unveiled the new Fiesta - but we didn’t know it at the time. The Bobcat was meant to be just a ‘prototype’ for Ford’s entry into the small car sector. But savvy dealers found themselves, from February 1977, taking initial deliveries of a somewhat similar-looking three-door…

This was a crucial model for Ford. The small car sector was so new back then it wasn’t even called supermini. Makers, of course, had once sold

smaller-sized models, but with each new derivative they had progressively grown – leaving an expanding gap in the range (a similar thing has happened today, with the creation of the city car). Throw in a couple of oil crises, and suddenly you’ve a public crying out for more economical models, which just weren’t on sale.

Renault and Fiat were the first to get there, with the innovative 5 and 127. These were the first

CarDealer

front-wheel-drive cars, with a rear hatchback, into which you could pack parents in the front, kids in the back and luggage in the boot.

Oh, sure, British Leyland still sold the Mini, but even back then it was way out of date. Simply too small and compromised to be a viable family alternative, lacking the comfort to encourage people to trade down. The Renault and Fiat did – that’s why Ford simply had to get in on the act.

Following a very similar model, the Fiesta broke no new ground but was still a revelation for Ford – its first front-wheel-drive model, first hatchback, first ‘small’ car since the Anglia grew into the Escort. Engines ranged from 950cc to 1.3-litres, it was three-door only and was arguably the bestlooking, neatest Fiesta of all.

Dealers adored it from the off. Why? Because customers took to it in droves. It quickly became Europe’s fastest-selling car, with half a million sold in the first year alone. That was because it was simply bang on the money. It could do 35 to the gallon, was nippy enough and, crucially, dead easy to drive.

The trims were brilliantly configured. Base gave you little (PVC seats? Mmmm), L gave you all most would need, Ghia tempted an upgrade with chrome, faux wood trim and extra soundproofing. A later S variant had 70s upholstery and was a forerunner of the XR2.

And prices? None of today’s rounded-up linearity. A base car, £1,856. A 950 L, £2,079.

A 1.1 L? £2,179. With the lavish Ghia topping out at a mighty £2,757.

The maker later underlined the car’s valueled proposition with the Popular lead-in version. This didn’t even get a rear wiper or air vents in the side of the dash – such luxuries were saved for the Popular Plus.

A new model arrived in 1983, but really this was little more than an extensively revised version of the original. But still, it sold – because by then the Fiesta had become established as a supermini best-seller. Ford kept things simple, gave people what they wanted, and didn’t muddy the waters. And has built 12 million of them in 30 years as a result.

CarDealer

39

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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

Voice Safe lets us check and clarify Calling Andrea Foster at Town Centre Citroen, we’re greeted with a message, saying our call may be recorded. Then, while the call’s transferred, we’re treated to ads, telling us all about the latest offers from the Sunderland dealership. ‘They’re changed every month,’ says Foster, who reports Voice Safe has

proven very advantageous for their needs.

‘For training, it’s great, and has helped improve telephone standards. It’s also great for customer service. Where customers say, “you told us this on the phone”, we can go back and clarify.

‘Sometimes, too, when people are ringing up for

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

advice, it’s hard to write everything down. Voice Safe enables you to go back and clarify things.’

Town Centre also runs Close It, and has integrated Voice Safe with the system.

‘This is a real benefit,’ says Foster. ‘Every customer has a contact page and their phone calls are stored. It’s easy to review calls.’

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

41

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marketing

You’ve

mail

got

Thanks to its innovative approach to online sales management, Motortrade-mail is dragging the motor trade into the digital age

‘W

e want to bring the dealer-focused automotive website into the 21st century.’ So says Josh Berkovits, boss of fast-growing online buying and selling tool Motortrade-mail. ‘The UK is out of step with the rest of the world. With our new website, we want to bring a fresh new feel to the internet for car dealers.’

He was speaking as the company starts rolling out an all-new site. This has been designed as part of a year-long commitment by the buying and selling management tool company to ramp

CarDealer

up its ambitious expansion plans.

‘We’re a relatively new player, but we’re already winning plenty of word-of-mouth recommendations,’ says boss Berkovits.

Why is this? ‘Our approach is, I feel, pretty unique. So out of step with the rest of the world.

With Motortrade-mail, I want to make things much more lively. You can see that in the new site – the colours are fresh, and it’s really vibrant.’

That’s all well and good, but if the fundamentals aren’t there, a good look won’t go far.

Berkovits grins and explains. ‘User-friendliness

is just as big a part of it, and core to the whole project. We wanted to design it so it didn’t just look approachable, but it WAS approachable.

‘We spent a lot of time working with and interviewing dealers, to find out what they want from a resource. One of the biggest targets we took from this was to make it fast, straightforward and anything but confusing.’ He then guides me through the new site to point out its key aspects.

The premise is to offer dealers a one-stop shop for buying, selling or requesting cars. Well, not just cars – it also caters for commercial vehicles >

43

marketing

Click on this page and you can enter full details of the car, its mileage, colour, the exact trim level, even add any general comments as to what sort of condition it’s in, how flexible you are on price, and so on. ‘We encourage dealers to be candid about price here. It’s a site only used by the trade, so confidentiality here is assured. It’s the ideal platform for a more honest and open approach.’

But, as Berkovits underlines, there is also a ‘DVLA Search’ panel. ‘Here, simply type in the registration of the car. The website will then auto-fill the rest of the panels, with information held by the DVLA. This ensures it’s all accurate but, more importantly, is fast. You can therefore simply click through and it will be hosted right away. That’s on sale, on the market – immediately.’

Searching for cars is similarly straightforward.

This is done by manufacturers, with the number of cars listed by each shown alongside the maker’s name. All cars on sale are listed, and clicking on an individual car displays all the information on it, including price and dealer contact details.

Obviously, the more attractive ads here are the ones carrying images – but still, there’s no denying the clickability of an attractive price. The layout

Josh Berkovits (centre) reckons that Motortrade-mail’s classy interface and powerful position in the market will drive future success

bikes, caravans, motorhomes, even parts and private plates.

Simply put, dealers are presented with a navigation page, from which they select their chosen commodity. In our case, of course, cars.

Dealers can search the database, request specific models from other dealers (ideal if, say, your franchise stock pool doesn’t contain the car a customer’s after – helping win a sale you’d otherwise lose, perhaps?) or – and here’s the key one – sell a car.

444

So that’s the site – but what other advantages does Motortrade-mail offer? Well, Berkovits still underlines that the biggest selling point is the lively, modern, classy appearance, but then goes on to back this up with business fundamentals, too.

‘One huge advantage is that dealers are not capped to a daily or monthly limit of advertisements. They can load up as many cars as they want. This is why we developed the bulk load facility – something that we did with larger dealer groups in mind.’

This new feature allows hundreds of cars to be posted on to the site in one hit. Berkovits shows me a recent case, where 200 cars were uploaded, and an individual advert created for each, before all hit the site and thus went on sale; a

CarDealer

‘The UK is out of step with the rest of the world. With our new website, we want to bring a fresh new feel to the internet for car dealers.’

process, he explained, which took minutes.

It works by importing Excel files, exported in .csv format. Dealer groups can create a stock list, with the price, reg plate, mileage and other vitals of each car, in tabular form. The Motortrade-mail database uploads this file and utilises the DVLA search facility to do all the dirty work, simply popping out the ads at the other end.

It really is impressive, super-fast and could save larger groups hours, if not days. It also ensures the cars go to market right away.

‘Of course, this is something a smaller trader will have no use for. But here, we’ve catered for them with an extensive picture load facility,’ says Berkovits. ‘Pictures are vital: our site allows lots to be easily loaded – so, say, a car described

CarDealer

as having a scratch on one side can also show an image of that damage, for instant appraisal.

Rather than go through the process of calling the dealer, getting images sent over… people don’t have the time. This turns potential lost sales into considerations.’

DVLA searches are unlimited, too, but Berkovits says the main draw at the moment is a highly competitive price. The basic package costs £34.99 per month, he says. ‘However, sign up for a year, and you’ll only pay for 10 months – saving nearly £70.

‘Alternatively, those paying up front will be charged £230 for a year, instead of the full cost of £419. That’s £19 per month – which, I reckon, makes us extremely good value indeed.’

The package offer is part of Motortrade-mail’s drive to increase its coverage and profile across the UK. The year-long project has been working towards this big push, and the boss is determined to get as many people using the site as possible.

‘We have had sleepless nights over this, listening to dealers and giving them what they want. With the new website, the product is here.

And, with the financial package how it is, the costs to them are relatively negligible. It’s all been designed to make dealers simply think, let’s go for it!’

Indeed, so confident is he that dealers will like it, Berkovits is offering a free two-week trial period. See for yourself whether he’s right…

45

tech

I Gadget nspect a

There’s a host of products out there to help you better your business. Richard Aucock takes a look at a few of them

I

t wasn’t long ago that we were doing our job with no more tools than a telephone, local newspaper and spiralbound notepad. Oh, plus a calculator for the junior...

It’s very different nowadays. A franchise dealership simply can’t operate without a hi-tech computer, while retailers would struggle for any sort of used market representation without internet access. And that’s before you even consider the wealth of gadgetry and tools out there.

It’s all exciting stuff – making us more efficient than ever before, and helping open up sales channels that, a few years ago, simply would have been impossible.

As Jonathan Skinner, of Gemini Systems, says: ‘The purpose of any tool is to aid and improve a current operation or process.’

But the world isn’t standing still. Here, we’ve looked at some of the very hippest gadgets or technology on the market, all designed with one thing in mind – to make you more money. Be it through saving time, increasing efficiency, expanding your sales avenues or simply making your job easier, they’re all must-haves for dealers in the 21st century. >

CarDealer

47

tech Dealer management

Many of us are aware of how important dealer management systems are. For most, they’re an absolute fundamental. They’re de rigueur in franchises nowadays, and also key components of general retailers, too. A good DMS will streamline tedious operations and smooth the day-to-day processes that are vital to doing your job.

Gemini Systems has one of the most wellhoned DMS on the market. Evolution DMS has been in constant development since 1990 – indeed, the company was founded around it. And the driving force for developments?

‘Advancements in technology and, more importantly, our dealers’ willingness and hunger to embrace them,’ says Skinner.

Technology in this arena really has to be bang on the nail, he explains, simply because the need for development and change comes from all areas – not least the wider motor trade and potential new legislation.

‘Take the Duty of Care a dealership has when vehicles pass through the workshop. A visual safety check is required on each vehicle and there are, of course, cost implications here.

‘Evolution has a powerful tool in its workshop control process – you can print out a personalised visual safety check sheet, and digitally store the results, any recommendations, and a date against each for when the work should be done.’

Impressive stuff, but there’s more. ‘The system is reinforced by a robust, proactive marketing process. Once the recommendation is due, the automatic marketing suite sends a reminder to the client to get them back into dealers’ workshops – not their competitors!’

Sales enjoy similarly canny tricks. ‘Prospective clients give details of cars they are interested in to the sales team, Evolution stores this information. Then, as vehicles are bought into stock, they are automatically checked against customer requirements and flagged up immediately.’

A cute gadget indeed.

Meeting maker’s demands

Support for Skinner’s view that DMS is deeper than you think comes from Brian Welsh, business development manager at MMI Automotive – he says that now could be the ideal time to consider upgrading your DMS. Quiet times can be the ideal periods to enhance existing systems. ‘Actively investing time and money into streamlining operations is the best way of overcoming a period of consolidation,’ he says.

MMI retails a system called Automate, so is well versed on the benefits. ‘Greater efficiencies in all business processes, more effective marketing and enhanced credit control all help when the going gets tough – and this is exactly what a DMS offers.’

It ensures management has a clear picture of the business, across all departments, that’s as up-to-date as can be.

Welsh also points out something of sig-

48

Evolution, not revolution Dealer management systems are vital to keeping your business running smoothly. Here are just some of the key money-making benefits of Gemini Systems’ Evolution DMS software: n Duty of care traffic light system n Automatic reminder sending n Automatic matching of desired vehicles n SMS / E-mail messaging n Web enablement for sales and after sales n Bar-code functionality for parts and workshop n Links to third party providers including DVLA, Postcode, SMS and CAP n Live Key Performance Indicators CRM and Showroom system

nificance to the franchise world: increasing demands that dealer DMS integrate with the franchise’s own IT systems. GM, for example, has made this mandatory come the end of 2008. That’s Vauxhall, Chevrolet and Saab dealers, all requiring a DMS that can speak to GM’s own systems. And others are following – including VW Group, Peugeot, Citroen and Fiat.

Dealers need to look for the requisite Technical Vendor Assistance – TVA – certification for their manufacturer. Naturally, Automate offers such connectivity.

‘This is one of our key strengths, and continues to differentiate our business,’ says Welsh. And there are advantages to both parties, he adds. ‘Greater information exchange ultimately benefits both parties, as the dealer has greater access to manufacturer data, and the OEM is able to plan a more efficient and profitable dealer network.’

And the icing on the cake are touches such as Automate’s Target. This is an integrated customer relationship manager, which helps make the most of every sales opportunity.

How? Well, when new vehicle sales information is entered, a ‘thank you’ letter is automatically created – and further letters sent out, again automatically, at 11, 23 and 35 months. Genius. The system does the same with service reminders, by calculating service schedules and MOT dates.

This is the perfect illustration of how the benefits of software can extend to the customers buying the cars, too. You probably have a database of names and addresses.

Have you considered upgrading to the latest customer management software? When done well, such software allows you to easily build up a complete customer profile for each individual you can snare details for – honing their requirements before they buy, encouraging them to do so, then managing the relationship afterwards.

A good CMS can work on all levels – boosting retention levels, driving conversions, even ensuring every person you come into contact with gives you terrific word of mouth. >

Gemini Systems chiefs Carl Roberts and Simon Harrord offer dealers a clever DMS

CarDealer

The Gemini Systems Evolution DMS software is easy to understand with clear screens and useful bolt-ons

CarDealer

49

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tech Do you know exactly what your stressed-out salesmen are saying on the phone?

On the blower

MANY customers’ first point of contact with dealers is via the telephone. It’s the most essential first port of call, so high standards here are vital. Gadgets here can record every incoming and outgoing call to your dealer, for later retrieval and review.

Big brother? Not if it’s handled correctly – this sort of tool really can help improve your dealership’s telephone standards. Bringing issues to light that you never even knew were a problem – and didn’t even know were costing your dealership money!

Companies such as CA Solutions offer high-tech products like Voice Safe. These allow managers to monitor calls, improving telephone skills – but also give sales staff access; perfect for reviewing what they last told a customer.

Especially as all calls are stored by customer name, so can easily be recalled. The potential for resolving disputes shouldn’t be overlooked, either. The web-based Voice Safe, which requires no special software, even allows these recordings to be e-mailed to users – think of the opportunities here.

The best call management systems also come with a host of analytical tools. Missed calls, time to transfer, even who’s answering fast and who’s not – all are recorded and can be tracked and

CarDealer

‘If you can’t measure or monitor calls, you can’t improve – how do you know if staff are costing you money?’

Paul Cleverly, Voice Safe reviewed. Call utilisation, say those who use it, really does respond once it’s installed.

‘Dealers spend a fortune on marketing – on trying to get people to phone them up. The telephone is thus a fundamental. Indeed, more so than ever nowadays, with the reach of the internet meaning customers are spread far and wide,’ says boss Paul Cleverly.

‘If you can’t measure or monitor your calls, you can’t improve. And how do you know if staff are shortcutting processes, costing you money? One client of ours said, after Voice Safe was installed, he found the business was getting twice the number of sales enquiries staff were first telling him. With monitoring, staff become more professional and everyone benefits.’

As Cleverly says, the trick is getting customers to contact you. There’s trick marketing software here, too. These can help you plan, step-by-step, marketing campaigns. They help you form logical, step-by-step campaigns – to a timeframe,

budget and desired outcome. Often, within an hour or less. Marketing is such a broad subject, dealers often find such programmes really help them firm up their thoughts.

It’s easy to lose sight of the target customer you’re seeking, or the key differentiator that makes you different from the rest – or, plain and simple, the key message you’re trying to portray.

Marketing software will ensure none of this is muddled and that your campaign retains its focus from the off.

More advanced systems also link into the internet, for online campaigns, and allow you to easily send out marketing e-mails to clients held in your database (this is great for customer loyalty, too).

The days of all this being restricted to expensive, mysterious technobods are over. Anyone can do it now. And, given the effectiveness and importance of online marketing, can you afford not to? >

51

“...If we could reduce your vehicle movement costs, improve standards and simplify the process....”

would you be interested?

Of course you would....

The VMS system is an online portal that has been developed to help dealerships, manufacturers and distributors to manage and control the vehicle movement process. At the same time it has proven to bring about cost savings whilst improving standards on collection, delivery and handover. It also reduces time spent on the process, giving your staff more time to sell cars.....how does it do all this... ...give us a call on (01302) 344200

VMS Network Limited Cussins House Wood Street Doncaster DN1 3LW Telephone: (01302) 344200 Email: office@vmsnetwork.co.uk

www.vmsdemo.co.uk

tech Even transportation can be improved with technology Gadgets can help in areas you think may be out of your control. Take vehicle movements. These can be hit and miss at the best of times, such are the number of variables involved. But tools such as VMS’ online movement product helps bring order and control.

‘It’s an online portal based around reverse logistics,’ explains managing director Mark Fox. Basically, it involves centralising and streamlining vehicle transportation – which, in its purest form, ensures that trucks sent to a destination loaded with cars come back with cars, too.

The technology behind it, of course, is fearsomely complex, but extensive development

by Wilson Hannah means that the VMS has just gone live – and really is easy as pie to use.

‘Vehicle transporters are commonly running unloaded for 30-40 per cent of the time,’ says Fox. ‘Our system manages this, pooling dealer vehicle movements to bring real economies of scale to the process.’

It’s something high street retailers already do – if they have stores in similar locations, they’ll bundle goods onto the same truck, halving transportation costs. Car dealers can, through VMS, do this as well.

‘Dealers log in, enter the vehicles they need moving – and all the transportation partners in the VMS network quote for the job.’

‘An online map plans it all out, so users can see where there will be potential collaborations.’

This map also allows you to track exactly where your cars are, and once delivered can pop up with scanned-in delivery documents, too.

Think of it as a centralised vehicle planner – with the bartering of market forces thrown in, too. And it’s proving popular. ‘The largest dealer groups in the UK are looking at it, as are car manufacturers,’ says Fox. ‘Many of those large groups have their own distribution fleets. These often run at a loss.

‘With this system, we can help make them cost neutral, through much higher utilisation rates. Indeed, many may even find we can help them make a profit through vehicle distribution!’

Music to the ears of accountants…

‘Transporters are commonly running unloaded 30-40 per cent of the time.’

Working in the workshop

Down in the workshop, gadgets are simplifying life, too. Take Dragon2000’s Workshop Module – the breadth of which is quite something. Think software is just software just there to hold records of what’s come in and how much you can charge for it? Think again.

Among its arsenal this has an electronic diary for vehicle booking, which helps dealers master workshop loading. It’s colour-coded and easy to follow, even accounting for staff holidays.

What’s more, entering cars allows stock parts to be allocated before the vehicle even arrives in.

MOT and service reminders can be sent to customers. To their mobile phone, via SMS, if they wish. Service history of cars can be tracked by chassis number or registration. Invoices can be sent out to multiple departments, all with hourly and VAT rates included. Non-stock parts can even be ordered from factor suppliers.

It’s supreme technology to streamline workshops. It can even be linked in with an electronic clocking machine – technicians scan a barcode on the jobsheet, and the exact time spent on that vehicle is recorded. Absolutely perfect for assessing labour rates.

CarDealer

Conference call

what about if you prefer to be immersed in new technology before buying into it? Well, EurotaxGlass’s has just the thing – on November 13, it’s holding a conference at Birmingham’s Motorcycle museum.

Called ‘Driving Business – opportunities for profit and growth in an uncertain market’, it is to include two master classes, neither of which you can afford to miss.

The first is led by Adrian Joseph. He’s the head of automotive at Google no less and will be supported by Drayton Bird, who is ‘the world authority on direct response advertising’. The two will focus on making marketing work better for those with limited budgets. Perfect.

Other sessions will not only highlight the many challenges facing the industry at the moment, but also offer solutions on how to beat them – in many instances, using the latest new technology and gadgetry you may not even have considered. Tickets cost £299, which includes lunch and an evening networking event: even more of an excuse to head across!

Got a product you want to highlight to Car Dealer readers? Call us on (023) 9252 2434.

53

2009 Catalogue now available!

Call us now to receive your FREE catalogue... tel: 0845 260 2607 email: sales@directsupplyukltd.co.uk web: www.directsupplyukltd.co.uk

cultclick cars right

...in association with G-Forces

How to get it right online In the first of a series of columns for Car Dealer, G-Forces marketing director Tim Smith looks at what you should be aiming for when it comes to your website

M

ore often than not, the internet is seen as a box to tick by main dealers.

Many hope launching a website and performing a bit of online marketing means the internet is taken care of, but the reality is much different.

The leading online practitioners in the automotive main dealer market ensure the internet is a critical part of their business strategy encompassing sales, finance, servicing and parts.

They will have an online strategy that helps deliver business goals and is intrinsic to their overall business plan. A good web presence is an extension of the showroom and as such should reflect the level of service a dealer delivers when customers visit a showroom.

So how can you do this and what are the elements to a successful online strategy? Well, we classify them as ‘web platform’, ‘web management’ and ‘web marketing’ and you need all of them to get the most from the internet.

Your web platform is normally your website and it is your mechanism for reaching an online audience. Your platform must be capable of performing the main functions such as stock display, content management, compliance, brand consistency, data feeds and email marketing. It also needs to be easy and quick to update – no site should be out of date.

The internet is continuously evolving and web management ensures your online strategy evolves with it. From a technical perspective, things such as new applications, technologies and search algorithms impact the way your website can work.

The market will affect areas such as content, artwork, promotions, pricing and consumer

CarDealer

‘Of course you know what you sell, but you may not be aware of how people actually look for your products online.’

of your business focus, what your potential audience is looking for and how you can reach that audience in the most effective manner.

Of course, you know what you sell, but you may not be aware of how people actually look for your products and services online. For instance, what words do they type in to Google expectation. Often these factors work hand in to find you? You can generate traffic directly hand. As an example, video is now commonplace to your website by well-focussed search engine as technical advances have made it possible to optimisation (SEO) and pay-per-click (PPC) load pages with the speeds necessary. campaigns. The bottom line here is to measure This has meant that consumer expectation it correctly and to ensure what you are actually has moved on and they invariably appreciate advertising appears on your site. websites with video more than those without. EsNone of these elements work in isolation, and sentially, what works today may not work tomor- an investment and focus on one to the detriment row. Therefore, your online strategy must evolve, of the others leads to an unbalanced and much and your web platform must be able to evolve less effective online strategy. with it. Your web marketing should take account Enter the Car Dealer Ewards, p24-25

55

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cars LCVcult insight

Be savvy in tough times There are hard times ahead, but canny commercial dealers can prepare themselves by increasing their online presence, says Vansunited.co.uk

V

ansunited.co.uk is forecasting tough times ahead for the commercial market.

The prediction comes with the SMMT releasing figures for August that show van sales are currently down by 24.7 per cent for the month and 0.8 per cent for the rolling year.

We know from BCA’s Pulse report earlier this year that used van sales are also on the decline with fleet and lease vans averaging £3,827 in June, failing to break the £4,000 watershed for the second month running.

Taking the current financial climate into account, it has never been more important to turn your stock quickly and with eight out of 10 people now searching for their next vehicle online, the internet has become the key advertising medium for dealers.

Advertising on portals like Vansunited.co.uk will help to maximise your online potential as your stock will automatically be listed on the Vansunited.co.uk network which includes Car sources.co.uk, Teletextcars.co.uk, Vansbymail. co.uk, Transitsbymail.co.uk, Contracthireweb. co.uk and Vanweb.co.uk.

‘Chat to Dealer’, an instant messaging tool offered by Vansunited.co.uk, is designed to help dealers reduce their costs, taking communication to an entirely different level.

The service enables sales staff to ‘chat’ with customers online and receive leads directly to their desktop, while offering consumers an alternative method of enquiring and communicating to the dealer.

One third of email enquirers expect a response within just four hours when searching online so this function offers a great instant response tool for dealers.

CarDealer

Fiat’s Fiorino wins Van of the Year gong FIAT’S all-new Fiorino has just been voted International Van of the Year 2009. It did so with a pretty comprehensive score of 112 points from a possible 140.

And it’s the van’s many novel features that impressed a jury of journalists from 20

European countries.

Indeed, the key to its success, apparently, is the model’s effective creation of a new sector within the 1B light commercial vehicle segment.

Previous LCVs have grown, leaving a gap at the lower end of the market. The Fiorino responds

When advertising online, it is important to ensure the photography and the description of your vehicle is first class. After all, the better the photography, the more appealing the vehicle will be to the consumer. Professional quality images, better still video, will set you apart from

with bespoke functionality; loads of between 610 and 660kg can be carried, volumes of up to 2.5 cubic meters held, while basic internal length of 1.5 metres stretches to 2.5 metres with the passenger seat folded down. This gives a total potential capacity of 2.8 cubic metres.

your competitors. While the internet allows dealers to target a wider audience, it also increases competition, so it’s important your sales team are ready to respond quickly. Perhaps now is the time to mystery shop your team to make sure they don’t waste those important enquiries?

57

13th November 2008 Where will your business be?

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...in association with Really Good Domains

The pyramids of power!

A little knowledge can go a long way in these troublesome times – here Really Good Domains explains how you can get that competitive edge

T

his month we thought we would introduce a smidgen of ‘knowledge management theory’ into proceedings. Don’t worry, we won’t be grading anyone at the end of the article, more just give you food for thought when you assess any part of your car dealership.

This theory is known by a few different names – some call it the ‘DIKW model’, others the ‘knowledge pyramid’ and a few know it as the ‘knowledge hierarchy’, and one of the first recorded mentions of it was by TS Eliot of all people! It is a very simple, yet very effective theory, which all businesses should embrace.

The theory is a way of putting a structure to data, information, knowledge, and wisdom in an information hierarchy. Data is the most basic level; information is where this data has been given structure; and knowledge is where information has been interpreted and given a context. Finally, wisdom is when this knowledge is acted upon and provides experience.

Visualising it as a pyramid can help – with the largest layer at the bottom being data, further up the pyramid is information, still further is knowledge and finally the pinnacle being wisdom – your very own Mount Everest!

So now we know the basics, how does this simple theory relate to the everyday business of selling and leasing vehicles? Simple – businesses are swimming in data and usually have a means of collating this data into meaningful information (think customer relationship management software as a good start), this data and information can come from internal sources, such as sales figures, marketing budgets, number of online visitors to your website; to external

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Ford

Fiesta

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Focus

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Yaris

Top Searches performed: 22/09/08

‘These days, if you are not utilising the myriad of information sources online and offline then you are asking for trouble.’ sources such as car sales figures from SMMT, number of unique users on industry websites, to the latest government economic forecasts.

Perhaps wisdom is too high a pinnacle to reach for many of us, but there is no reason why we should not aspire to these lofty reaches. In this day and age if you are not effectively utilising the myriad of information sources online and offline then you are asking for trouble.

Many of the Really Good Domains stable of websites offer users and advertisers plenty of

9

Land Rover

Discovery

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BMW

1-Series

industry specific information: ContractHire AndLeasing.com, SaveMoneyOnCars.co.uk and TheVanWebsite.co.uk, to name but three, are the biggest and busiest websites in their respective sectors.

ContractHireAndLeasing.com and SaveMoney OnCars.co.uk give you the biggest sample search data in their respective sectors which means that when you click on the ‘most popular car searches’ performed in the past 30 days you can be sure that this accurately reflects the general public’s opinion – see the tables above for an example. Links to both ‘most popular searches information’ can be found on each websites’ homepage.

It isn’t rocket science, but it is valuable information which the knowledgeable can use to help their dealership through choppy waters.

SaveMoneyOnCars.co.uk

ContractHireAndLeasing.com

400,000 Monthly Users 1,300,000 Monthly Page Views

500,000 Monthly Users 2,000,000 Monthly Page Views

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300,000 Monthly Users 1,500,000 Monthly Page Views

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CarDealer

1

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59

auctions

Buyers take August off The market falls further in summer months, but are there bargains to be had for risktaking traders in 4x4 market?

B

CA has reported that average used car values fell 3.7 per cent in August alone – that represents an average loss of £200!

It is also means the average value is now well below the £5,000 benchmark with it currently standing at just £4,765. July saw values just dip below the threshold, and August has reinforced that fall.

Performance against CAP clean is now stuck at around 90 per cent. However, BCA’s monthly ‘Pulse’ update shows it’s not all bad news.

‘August is traditionally one of the slower months for used car trading and this, combined with the current economic conditions, meant we were unlikely to see overall values rising,’ said Simon Henstock, BCA’s UK network operations director.

‘However, it is notable that fleet and lease values fell slower in August than they have since the spring months, and there is increased interest in budget cars, where values stabilised and even began to climb during the summer.

‘Values in this sector have remained comparatively strong, providing further impetus to the notion that motorists are seeking to downsize as economic conditions tighten.

‘Fleet-sourced budget cars have also seen CAP performance rise for two consecutive months, the only part of the fleet and lease sector to do so.’

Budget part-exchanges also jumped in August by a significant 8.6 per cent. This may only be £74, indicating the average value of these cars, but even so, it’s still the third consecutive month of growth for the sector, with performance against CAP also rising by 4.3 per cent.

It seems low-priced cars are the place to be at

Terror may have struck the 4x4 market, but could there also be opportunity?

‘Big cars are starting to become attractive to buyers that always fancied a 4x4 but could never afford one.’ the moment – a fact that is entirely concurrent with the economic mood of the country.

Meanwhile, terror may have struck the 4×4 sector – but BCA says this cloud could be a potential opportunity for brave car dealers.

With 4x4s facing huge price falls, the big cars are starting to become attractive to those buyers

that always fancied an off-roader but could never afford one.

Henstock says: ‘Guide prices on many biggerengined executive and prestige vehicles are now much more in line with market sentiment, and even the price of fuel has fallen in recent weeks. We may well see a niche market developing to serve those “weekend” and leisure motorists, who always desired a bigger, more powerful premium model but couldn’t previously afford one. And if your annual mileage is below average, even the fuel costs might not be a deterrent.’

Fortune favours the brave. May your’s lie in getting back into the SUV sector?

Will you take anything to get that important deal done?

Don’t just think it’ll polish out – it won’t

60

BLASÉ about the condition of your partexchanges? Willing to take in anything in order to get the deal done? Then your profits are at risk, warns Manheim.

Dealers who fail to fully assess part-exchanges face serious shocks from poor vehicle condition. That’s because trade buyers are inflicting swingeing cuts on values for badly-presented models.

Devaluations include £100-£300 for cracked windscreen, £75-£150 for cracked headlights, and £50-£150 for damage to alloys – each. And these are all areas that can be easily missed during a rushed deal.

‘Apart from general consumer concerns over car running costs, the credit crunch is restricting the number of potential retail buyers in the market,’ explained Mike Pilkington, MD of Manheim Auctions and Remarketing.

‘This, coupled with the contraction of the sub-prime finance sector, is making trade buyers more conscious of preparation and stocking costs.

‘Vehicles in poor condition are much harder to retail and there is not the appetite to take them into stock, unless the price reflects it.’

CarDealer

FLAG feeling - Car dealer

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WHEN THE HAMMER GOES DOWN

WE ASK ‘WHAT NEXT?’ Those two little words are vitally important to us. They sum up our attitude, our ethos, our spirit. We always believe that even more could be done to improve the remarketing of your vehicles and to bring you even more choice of great used stock to buy. And we’re continually striving to find new and innovative ways to help. It’s one of the reasons why we’re Europe’s No.1 Vehicle Remarketing Company.

www.bca-europe.com

We never 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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recruitment

Stop staff being poached Losing your best salesmen to rivals would be a disaster, but Hot Automotive reports it could easily happen to you

I

t’s most employers biggest fear – your main rivals contacting your best salesman and snatching them away with the promise of more money and benefits. Poaching is rife in this industry, so what can you do to stop it happening to you?

You don’t need us to tell you that in these times of economic strife, retaining your valuable employees is vital. And the thing is, working out how to do this isn’t really that hard – happy staff can’t be poached, it’s as simple as that.

But you do need to minimise the impact of people moving on to better opportunities with your competitors. Focus on what it is that is making your employees consider leaving and try to change any problems.

Once you discover someone wants to quit, you need to protect your data and other team

Would more cash from rivals tempt your top salesmen away? members – and it is here that a different set of decisions need to be made. Make these decisions adhering to business principles not emotional responses. When an employee wants to leave, it’s not usually personal, simply a decision they have come to because it suits their lifestyle or financial requirements. Don’t make the mistake of dismissing an employee simply because you have found out they want to leave, unless you have a valid legal/breach of contract reason for doing so, oth-

IPU !

"650.05*7& 3&$36*5.&/5

erwise they will have a strong claim for unfair dismissal. Suspending them is not a good idea either. You could retain more control if you put them on garden leave which is where they serve out their notice period at home. During this time, they’ll still get their salary but cannot commence employment elsewhere until the ‘garden leave’ period comes to an end and, if they are leaving to join a competitor, their access to information or customers is restricted/denied.

Review your employment contracts and identify the data which is most likely to be targeted and make sure it is secured. Restrictive covenants aren’t generally worth diddly – your employees can join your competitors or set up on their own and it’s unlikely you will have any legal recourse unless it relates to confidential information or they were acting against your company’s interests whilst they were still employed by you.

It can be expensive to replace a good employee when you consider the costs of recruitment, so managing your labour turnover is important.

Next month… appraisals and resignations

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CarDealer

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Peering into the lives of the motor trade...

On The Spot

Name: Wendy Swaine Age: 38 Lives: Yorkshire Any family? A very understanding partner, two crazy sons, two stepchildren, one mad black cat and two fish – Ginger Tim and Big Fat Roger.

What do you drive? Lexus IS220 DSE. What was your first job?

Up-selling from the beginning – at McDonalds.

What was your first car?

D-reg white Vauxhall Astra, bought before I passed my test – to make me more determined to get on the road.

Who do you work for now?

HPI Limited.

What does this involve?

Responsible for the MT Top 35 dealer groups who use HPI, NMR or Driveaway; building and developing relationships with key strategic people; managing

accounts to full potential. Listening to client needs; meeting requirements or developing new products for clients; keeping existing contracts in place; and writing strategic proposals.

What are your job’s biggest challenges? Time and lack of it.

Any downsides? Only if a problem cannot be resolved quickly enough or it’s out of my

control other than that the job is now that will have to be Our Kid what I make it.

– I can’t live without your love, from the 70s.

How much do you earn?

Based on the hourly rate, rather What’s your favourite film and the last one you than a 35-hour week, definitely saw? The last one I saw was not enough!

What Happens In Vegas, very Do you have an average day funny. My favourite has to be and how does it pan out?

Pretty Woman.

Absolutely not. No day is ever Favourite football team? the same.

The Super Blues – Chelsea.

What newspapers/magazines What is the biggest challenge do you read? Oh dear, don’t car dealers face? Our governhave time for a daily paper – ment, taxation and ridiculous only time I read one is when I fuel prices. am on holiday!

What is the most expensive thing you’ve ever bought?

My house without a doubt.

What would be your number one tip for car dealers? Get more bright women on board in your dealerships, it makes the difference.

What’s your mobile phone ring tone? Only the true ’24’ fans will appreciate it but it’s the And finally... what’s your motto in life and business? ringtone of the phones in CTU. Treat everyone as you would like to be treated if you were your What was the first record customer. you bought? Oh my word,

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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

competitions

Two chances to win prizes!

2 x Navman S80 from Halfords

H

alfords has played no small part in the dramatic rise in popularity of portable sat nav units. The high street giant’s constant offers and deals on the navigation units has played an important role in the meteoric rise of the technology among normal motorists.

And the retailer’s latest offers are no different. Take this cracking Navman S80 Deluxe unit as an example – opt for one a few months back and you’d have shelled out £280, but now it’s half price!

To celebrate the fantastic offers Halfords has on at the moment, the retailer has agreed to give away TWO of the Navman units to Car Dealer readers. The gadgets have full European mapping and come pre-loaded with safety camera spotting software for a trial period.

The S80 has a sharp 4.3-inch screen and a 2GB internal flash memory. Traffic jam information is integrated into the unit so the system will pick up details of queues via an FM radio signal and display details of the hold-up on the screen. To keep you on the right side of the law there’s an integrated Bluetooth handsfree kit so you can make and receive calls too.

To find out how to enter our draw to win one of two we’ve got to give away see below, or if you can’t wait that long log on to www.halfords.com for details of where to buy.

The superb Navman S80, from Halfords, offers a host of special features including speed camera and traffic jam spotting technology

3 x Bury Technologies handsfree kits

H

andsfree kits are vital if you’re to stay the right side of the law, but if you want to stay the right side of the fashion police you don’t want one that attaches to your ear! Now there is another option – this clever new kit from Bury Technologies. Featuring a smart touchscreen and voice recognition, the CV9040 takes in-car calling to the next level.

The unit can download your phonebook, which then lets you dial by saying the name. The voice

dialling option works well, allowing you to call a number by speaking it out loud. Another clever touch is the unit’s ability to read text messages out loud – very handy on the road.

At £140, the CV9040 is a high-end piece of kit, and this shows in the quality of the materials used, especially the excellent touchscreen display. We’ve been given two units

by Bury to give away to Car Dealer readers (find out how to enter below), and for more information you can call 01206 500872.

Entry is easy, and free of charge T O enter either of this month’s competitions all you have to do is send an email with your name and address – so we know where to send the prize – with either ‘Halfords’ for the Navman

CarDealer

sat nav units or ‘Bury’ for the handsfree kits in the subject bar to james@blackballmedia. co.uk.

Winners will be picked out of the hat totally at random on Friday, October 24. Good luck!

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products 1. The Ovei

Price: £50,000 Contact: ovei.co.uk IF you’ve got a spare £50,000 lying around and are mad about Gran Turismo – this gadget is for you! The Ovei is a multimedia entertainment pod that cocoons the owner in a world of their own. Engineered by McLaren Applied Technologies, the capsule can be specified with the highest quality audio and visual equipment to make even the Fast and the Furious seem enjoyable!

2. Laser Magnetic Pickup Tool

Price: £10 Contact: lasertools.co.uk The Magnetic Pickup Tool from Laser has a super strong magnet, claw and torch. It’s designed for use under the bonnet when you’ve dropped a bolt deep into the engine cavity. The torch is useful for illuminating the wayward fixing and the magnet can be used to retrieve items weighing up to 3lbs.

3. Porsche The Essence

Price: £52 Contact: porsche-design.com DON’T worry, this aftershave might be produced

by Porsche, but it doesn’t smell like spent petrol!

It does, however, come in one of the coolest bottle designs ever to grace the bathroom cabinet and is said to have woody tones with a hint of myrtle and juniper. The fragrance is described as fresh and cool and will be here by Christmas.

4. LG DP391B

Price: £200 Contact: uk.lge.com IF you want to treat your kids to an in-car movie moment, this LG unit impresses. The picture quality is stunning and the sound from the builtin speakers is equally top notch. The LG has a 256MB on-board memory that lets you download films and music direct to the player and there’s a card reader slot too.

5. Snooper S290M Mobile

Price: £100 Contact: snooperuk.com You need a PDA-type phone for this sat nav with a screen size of around 2.8-inches running Win Mobile 5.0 or 6.0. The navi software comes on a 512MB Mini SD card which you simply slot into your phone. Mapping for western Europe, camera alerts and information on 2,000 golf courses (yes, really) is all included.

6. Dremel Stylus Lithium-Ion

Price: £60 From: dremeleurope.com/gb IF you’re working on a classic car, or simply making repairs to your current set of wheels, a Dremel can come in extremely handy. This is the latest model, the Stylus, and has a unique design that slots into the curve of your hand between thumb and forefinger.

7. Gerber Omnivore

Price: £30 Contact: gerbergear.com HAVING a ready supply of batteries to power all your gadgets can be an expensive exercise – which is why this clever torch is so handy. The Omnivore doesn’t just have to have one sized cell, instead you can power it with AA, AAA or CR123 batteries. Useful!

CarDealer

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used cars More dealers are pre-selling cars PRE-SELLING is paying dividends to those who focus their efforts on it, says Autotrade-mail.

Putting efforts into how they handle enquiries for vehicles not in stock is helping dealer profits, despite reduced footfall.

Dealers are using the site’s 4,000-strong network of sellers to search and ‘hold’ cars for customers. Dealers know they’ll get more if it’s pre-sold than they would if they traded it as general stock. And at the same time it avoids the recessionary risks of holding vehicles in stock, making for a much more dynamic, faster-reacting sales process.

Autotrade-mail director Kevin Watson said: ‘While lots of dealers have done this for many a year through our system, we have certainly seen a determined shift towards less speculation and more certainty that comes from buying to order.’

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Has rot finally stopped?

Market is still tough but dealers predict it won’t get much worse USED car dealers are reporting an increasingly tough market as economic uncertainty leads to ebbing confidence among car buyers.

The latest research by CAP among retail dealers reveals deepening problems, with all the measures of market performance showing a decline.

In the latest monthly analysis of dealer performance the proportion of dealers reporting a decline in used car sales rose from 51 per cent to 65 per cent. And year on year performance continues to worsen, with 76 per cent of dealers reporting a decline – up from 70 per cent in the previous month.

However, it is when we drill into the detail that the true nature of the economic situation is revealed.

In the latest research 26 per cent describe their year on year picture as ‘considerably worse’, compared with 18 per cent last month.

Recent months have been characterised by the frustrating situation of customer enquiries and showroom footfall remaining buoyant while conversion to sale has failed to materialise. But even customer enquiries are showing signs of drying up.

Given that the state of the market – and the wider economy – is universally understood now, it is perhaps the forward view which now matters most. Each month dealers are asked how they feel the business climate will change over the next few months and the latest results suggest a belief that conditions are not set to worsen dramatically.

In fact, there are fewer dealers forecasting further decline and more predicting little change.

Are your showrooms empty?

CarDealer

Trading Places

z

...in association with BEN

We need your help fast!

Riverside Auto’s James Khan has played a blinder and bolstered our fund, but we urgently need another baton holder to come forward for BEN

W

ell, James Khan has come up trumps once again. Not only did he source a very smart-looking Megane for us to carry on trading up for BEN, but he’s also sold it within the month, too!

This has helped him make another £150 for our fund total, taking it up to £1,800. Not bad for a few week’s work – although, as you will all know, it risked being a bit of a slow process.

However, the appeal of the black Sport Hatch won through in the end.

Goodness, it was something that looked so tidy we rather fancied a sniff round it ourselves – madness, of course. We don’t need any more cars.

But, you know, when it’s for charity…

That’s clearly what the buyers of it were thinking. Well, maybe not.

But they were seeking value, reports Khan. A young professional couple them, too.

‘While here, they also looked in their mid 30s, they were drawn to Whatever, it’s with relief that the at a couple of Mondeos and a the Megane because of one thing deal is done, and the tally keeps 407 diesel, but in the end the above all – fuel economy.

‘They travel to London every day,’ tidy looks of the Megane, plus its on rising. Trouble is, that’s where the story grinds to a halt. Because, superior mpg, did the deal.’ reports Khan. ‘So economy was Great stuff! We wonder if the shock horror, we haven’t recruited of utmost importance to them – anyone to take over the baton particularly with fuel prices the way sporty drive and a bounty of just yet! It seems current trading standard kit didn’t help sway they are.

‘Economy was important to the buyers expecially with fuel prices the way they are at the moment.’

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 were up to £1,650. Now James Khan has taken the total to £1,800.

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.

James Kahn of Riverside Autos and his team quickly added to our fund with this Megane conditions just aren’t conducive to this sort of thing.

Well, that’s what a cynic would think. But we know the high esteem you all, like us, hold our adopted charity in. So, let’s have it – who’s going to help us keep on pushing up the total funds raised?

As Khan has shown, it doesn’t have to be a whole car bought with the funds; while this option is still open we’re happy for you to approach it in any way you see fit, so long as the total keeps on rising.

Drop us a line if you have any great ideas – our details are in the story on the left!

It wouldn’t have been possible without...

CarDealer

71

used cars

...in association with HPI Valuations

Is the worst now over? petrol version recovered slightly in September, with its year-on-year fall at nine per cent. The diesel version performed even better, showing a total fall of 5.6 per cent. While neither are by no means great, they compare favourably against the average year-on-year fall for all 12-month vehicles of more than 20 per cent and the 33 per cent drop suffered by the three-year-old luxury sector.

While doubts linger over the Government’s vehicle excise plans, the city car will continue to benefit as people downsize to reduce their CO2 emissions and possibly their tax burden too.

However, there is no escaping from the fact that on the whole, year-on-year values continued to drop in September. And when the variances of year-on-year figures for August against September are compared, we see an average fall of around three per cent a month for all 12-month-old vehicles and 2.4 per cent for all three year old vehicles.

The maligned 12-month-old petrol luxury sector slipped the most, falling another 6.4 per cent, followed closely by 12-month diesel Small cars at 6.1 per cent.

September sees residuals start to stabilise for some three-year-old family cars

U

sed car valuations are down by more than 25 per cent year on year, according to the latest figures from the HPI Used Car Valuations Index. Despite the across the board falls, some sectors are performing better than others and a few are beginning to show very small signs of a potential recovery.

One sector that may have fallen as far as it can is the three-year-old family car group. Both petrol and diesel family cars saw values rally a little, with petrol cars rising 2.3 and 1.9 per cent respectively, when year-on-year figures for August are compared against September.

The 12-month diesel MPV is also steadying – perhaps a sign that family practicality is fighting back over image? The major sector to show shoots of recovery is the 12-month-old city car. The

Today’s used car market is not for the faint hearted, says HPI’s Valuation expert Martin Keighley

S

eptember saw car manufacturers cut back production in an effort to match falling demand. The ailing pound pushed UK new car prices even higher and the US finance market shored up Freddie Mac and Fannie Mae, only to be hit by the demise of Lehman Brothers days later.

With that as a backdrop, and with most cars manufactured outside the UK, the aforementioned falling pound should lead to a round or two of new car price increases in the coming weeks, particularly to those made in the US. Combine this with lower demand, high stocking costs and shrinking profit margins and you could have a recipe for insolvent dealerships.

Used vehicle values have suffered further falls in both the car and light commercial markets, but there is hope things may be about to bottom out.

Buyers continue to downsize, buoying demand for many city cars and superminis, which in turn is having a negative impact in the luxury, premium and 4x4 sectors.

Overall, though, things are bleak, but as we approach Christmas it is hoped values will level out as the rate of fall begins to slow. More and more of us are making the difficult decision to cut losses.

The time for sitting tight and hoping for the best has passed. Of course, it’s a bitter pill to swallow, but the alternative is even worse.

Values for diesel-powered family cars and MPVs showed signs of recovery in a tough September

Supermini sector 10 major fleet players Rank

Model

No models in range

Average new price

Average RV 36(60) £

Average RV 36(60) % Monthly depreciation cost £

Ranked by residual value % 1 2 3 4 5 6 7 8 9 10

Mazda 2 New SEAT Ibiza VW Polo New Fiesta Honda Jazz Skoda Fabia SEAT Ibiza Suzuki Swift Toyota Yaris Peugeot 207

10 10 42 40 9 21 19 9 40 42

£9932 £9975 £11362 £11848 £12144 £11185 £10329 £9587 £11739 £12614

£3940 £3815 £4285 £4343 £4406 £3849 £3405 £3136 £3784 £3806

39.8 38.3 37.9 36.7 36.3 34.5 32.9 32.7 32.3 30.2

166 171 197 208 215 204 192 179 221 245

Ranked by monthly depreciation cost 1 2 3 4 5 6 7 8 9 10

Mazda 2 New SEAT Ibiza Daihatsu Sirion Subaru Justy Chevrolet Aveo Suzuki Swift Ren Clio Campus Chevrolet Kalos Hyundai Getz SEAT Ibiza

10 10 7 1 6 9 6 4 10 19

£9932 £9975 £8712 £8995 £8845 £9587 £9060 £8876 £9210 £10329

£3940 £3815 £2439 £2675 £2421 £3136 £2325 £2013 £2305 £3405

39.8 38.3 28.1 29.7 27.4 32.7 25.7 22.8 25.1 32.9

166 171 174 176 178 179 187 191 192 192

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CarDealer

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!CCURATE VALUATIONS KEEP YOUR STOCK SELLING PROFITABLY /UR VALUATIONS ARE ACCURATE BECAUSE WE KNOW THE MARKETPLACE 7E TALK TO DEALERS AND WE USE FLEET AND AUCTION INFORMATION TO GIVE YOU VALUATIONS YOU CAN RELY ON 'ETTING OUR VALUATIONS COULDN´T BE EASIER JUST ADD THEM TO YOUR STANDARD (0) #HECK 4HEY´RE &2%% BUT THIS OFFER ENDS ST *ANUARY SO START USING OUR SERVICE NOW AND SEE HOW WE CAN SUPPORT YOUR BUSINESS

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tail light

Sub-Prime Time I

n 1966, I was four years old. Geoff Hurst went into the record books by becoming the first man to score a hat-trick in a World Cup final helping England to secure a victory over Germany, and Tom Jones held the number one chart position for seven weeks with The Green, Green Grass of Home. But that was more than 40 years ago...

You don’t expect many comparisons to be made in 2008 to a year four decades ago, but the level of new car registrations in August this year dropped to their lowest level in any August since 1966. This statistic really brought home to me the level of impact our current economy is having on the buying public.

Let’s just say ‘times are tough’ and the outlook for 2009 doesn’t hold much promise of a revival. Or does it… Only a few months ago, in this column, I shared my feelings of déjà vu about what’s happening now compared to what happened in the late 80s and early 90s. Now I’m convinced.

From my point of view, being a non-standard lender, I need to prepare my business for a huge increase in the non-standard population over the coming years. Currently, the non-standard population equates to about 24 per cent of the total adult population in this country, and if my projections are correct this will increase to about 32 per cent (almost a third) over the coming years.

Let me put this bluntly: one in three of your future customer prospects will not get prime finance. If you want to service this population you’ll need to make these customers feel comfortable in the way they are being dealt with and confident that they can still buy one of your cars.

Of course, you’ll have to carry stock that’s appropriate for these customers – but your attitude towards them will make all the difference. So, be prepared and try to

‘Let me put this bluntly: one in three of your future prospects will not get prime finance – and you will need to make these customers feel comfortable.’ put these customers quickly at their ease, as this is a situation a lot of customers are now facing for the first time with the general tightening of credit in the market. It’s nothing to be embarrassed about.

Pass non-standard customers on to a finance provider with the skills and experience to overcome the customer’s frustrations and concerns, as these customers need to be handled very sympathetically.

Be prepared to down sell the customer to a cheaper car if the non-standard lender isn’t able to offer the customer an advance in line with their initial expectations.

Of course, the lender should inform you before the customer that this is the situation, so that you’re well prepared.

Prepare for and handle these ‘new’ non-standard customers with care and respect, and you’re likely to get a very satisfied client and a positive sale. The prime and new car market is suffering at the moment, but on the other side in used and non-standard the grass is a little ‘greener, greener’ as Tom Jones might say.

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

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Contributors Duncan Chappell, Dan Harris, Mike Askew, Mike Hind, Richard Gibbon, Simon Evans and Chris Jervis Sales Executive Thanks to...

Fiona Russell Justine Hoadley, Tim Marlow, E: fiona@blackballmedia.co.uk Tim Naylor, Linda Baggott and T: 023 9252 2434 Bernard McGranaghan

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