CarDealer. Issue 35 | February 2011 | CarDealerMag.co.uk | £3.50
[ INTERVIEW: Inifiniti chief chats to Car Dealer p32 ]
Driving the future of the motor trade
Chrysler hits back Re-badged Lancias heading for Chrysler dealers Boss on why the worst is over Plus: Marque’s hunt for new dealers p16
Reasons to be Cheerful Why it’s not all doom and gloom for dealers p49
Profitable Cars Which models do car makers make most on? p36
Car dealer Club
our lawyer on how taking free legal advice could save you thousands! p38 CarDealerIss35.indd 1
EMPOWERING DEALERS Our hunt for the best car maker to represent is back! p44 Plus: Nominate your favourite suppliers 8/1/11 13:56:29
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Issue 35 | February 2011
‘Our results ruffled a few feathers last year – some car manufacturers didn’t like to be told how it really is, and for us to report it – but that wasn’t going to stop us running the survey again.’
LAST year we launched our hunt for the best car manufacturer to represent in the UK. Called Car Dealer Power, the survey put you, the dealers, in charge and asked you to rate the maker you represent on a host of different criteria. Selling cars is a partnership between you and the car manufacturers, but all too often those makers think YOU are lucky to be representing THEM! Car Dealer Power is your chance to tell them what you really think. Our results ruffled a few feathers last year – some car manufacturers didn’t like to be told how it really is, and for us to report it – but that wasn’t going to stop us running the survey again! Anything but. Others were delighted to be topping the poll though – especially Nissan which was voted your winner. This year we’ve added more questions and are asking you to name the Car Dealer’s Car of the Year – your choice of model, from any manufacturer, which you believe deserves the gong (think of it as a bit like the Football Writer’s Football Writer of the Year). Part two of our survey is about celebrating those motor trade suppliers that provide you with the very best service. You’ll be naming the companies to do business with in 12 key categories as well as your picks for special achievement and innovation of the year. Your favourite companies will then be invited to a gala dinner at the top of Portsmouth’s Spinnaker Tower where your choices will be handed their gongs. This is your way of saying thank you to the suppliers that help you do business.
We also want to thank you for taking the time to fill out the survey – which can be done online at CarDealerPower.com or on paper (p46) and sent back to us. To do this we’ve lined up some incredible prizes to give away over the next few months. In this issue we’re giving away three Garmin sat navs to random respondents to the survey. But, as Car Dealer Power is anonymous, if you want to be in with your chance of winning one make sure you give us your mobile number. Thanks for supporting Car Dealer Power – the only awards that empower you!
CarDealer.Club Free legal advice worth £199 with a £25 mag subscription p38 CAR DEALER CLUB SOME people might be wondering what the catch is with Car Dealer Club. We give you free legal advice worth £199 from a top class lawyer and all it costs you to join is a £25 subscription to Car Dealer Magazine. Sounds too good to be true, I know. But, believe me, it’s not. Our legal team – headed by Lucy Bonham Carter – really will give club members free, no obligation advice when they need it. She does this in the hope that if you need court representation or a legal letter
sent on your behalf some day then you’ll use them. Simple. In this issue Bonham Carter tells us a horror story about one dealer that failed to get advice when a customer complained about a faulty car. He ended up shelling out thousands of pounds unnecessarily – if he’d been a club member he wouldn’t have had to… Find out the full details on p38. END OF AN ERA WHAT you have in your hands is the end of an era. After 34 issues we’ve decided to can Car Dealer and produce something else. Car Dealer MKII. We’ve been hidden away in a cupboard for the past three months redesigning the magazine. Don’t worry, all your favourites will still be here – it’s really a mid-life facelift – but we’re sure you’ll love it. Make sure you’ve subscribed at bit.ly/dealerclub so you don’t miss it. And lastly an apology. Due to that weird white stuff that fell from the sky and refused to disappear for weeks in December, deliveries of last month’s issue were severely delayed. It didn’t help that Santa got in the way either. Normal service will now resume. Well, it will if the white stuff stays away… Roll on summer.
James Baggott, Editor
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There are other ways to retain customers and make more profit!
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WMS have been helping dealers to keep their customers in the loop for sales, service and repair work by offering a range of Warranty, Gap and MOT insurance products so that the 1st profit isn’t the last profit. We appreciate how hard you have to work for each sale so it makes sense to retain your customers with value for money protection that provides your customer with confidence and peace of mind and brings them back to your dealership when they need a service or an MOT – it’s simple we make you money! No wonder we are the dealers favourite warranty company with over 3000 product re-sellers throughout the UK.
If you would like to discuss the products and services available from WMS Group, please contact me, Eric Stone, on 07789 682502 or email sales@wmsgroupuk.com
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ignition Issue 35 | February 2011
36 dashboard 06 Feedback
your comments from the web and Twitter
09 40-car buyers
Couple purchase 40 cars from one dealer
10 Overfinch saved
Car dealer steps in to buy specialist
12 Paceman
Mini unveil another concept
13 hyundai boss
Tony Whitehorn on hopes for 2011
16 Chrysler’s back! Manufacturer’s relaunch plans
20 Finance 22 MG & social media
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49
Car maker ramps up interest
25 Big Mike 26 VAT insight
The deals to beat the tax rise
29 Eco hopes
Why green tech is car makers’ priority
30 Car Dealer on TV
find out about our new video channel
32 Infiniti chief
Boss talks exclusively to Car Dealer
forecourt
34 Kia sportage insight 36 Most profitable cars
20
features
38 CAR DEALER CLuB
Our lawyers on the dealers that got it wrong
42 Ask Lucy
Latest club members’ questions answered
44 Car Dealer Power
16 38
Have your say and win sat navs!
49 Reasons to be Cheerful Why you should be smiling in 2011
57 Right Click 58 Auctions 61 Recruitment 64 used Cars 65 sMMT sales figures 66 sub-Prime Time
44
EMPOWERING DEALERS CarDealerMag.co.uk | 05
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feedback Dealer to pay buyer’s bill
Link: bit.ly/dealerpaysbill WELL, if anyone needed a reason to have some legal advice or representation, this is it! I really feel for the dealer here, it’s like the ref blowing the whistle for half time, and one team playing on and scoring and letting it stand! As if it isn’t hard enough for us at the moment. I run a 35-car site and managed to stay open through the recent tough times. But, if I was to deal with what McGrath had to, I probably wouldn’t be here anymore! And what if it was to happen to a dealer more than once? Or even on a regular basis? Independents will be going out of business even more regularly than they are now! Carl Chambers, via CarDealerMag.co.uk
Couple by 40 seats
Link: bit.ly/40Seats GREAT story. Again, it shows looking after the customer pays off. Well done to the dealership. Umesh Samani, via CarDealerMag.co.uk
Dealer administration Link: bit.ly/dealerinadmin SAD fact of today’s market. Many of
Your comments via email at james@blackballmedia.co.uk| From our website at CarDealerMag.co.uk | And from Twitter: Follow editor @CarDealerEd
the dealers have been squeezed by the scrappage allowance and a lack of credit in the marketplace. The advertising options are often too expensive and can drive dealers into administration. It is worth trying local free ads for a much cheaper deal. Karl Wilson, via CarDealerMag.co.uk
Tweeting about last month’s random cover picture
Renault MD admits quality disaster
Link: bit.ly/renaultdisaster IT’S a shame that the Vel Satis and Avantime - especially the Avantime - flopped. The Vel Satis wasn’t in the mould of other big French saloons and should have performed better. I have had a few Vel Satis at my dealership and they have proved to be a popular used car, despite their rarity. The Avantime was another great car - as Sybord said - but Renault wasn’t unlucky - they were just too adventurous! It would be wonderful to see Renault return to this bold styling as many of their current cars are just too dull. The new Megane was a poor replacement of the old one, and the Laguna was a big disappointment. Despite Sybord’s optimism, I don’t think we will see Renault return to their old ways. Not yet anyway! Malcolm Taylor, via CarDealerMag.co.uk
Got to love our European creative. You should see the ideas that got rejected! #lostintranslation Via @GJ_WRX Quite inspired, really. I mean, you can’t NOT look at it, can you? Via @torquespeak
My model selection process would be lengthy (oo-er) and thorough and be based purely on the candidates’ personality… Via @internetcarlot Looks a bit fishy to me :O Via @Zuffle
It seems I’m the only ‘normal’ person on the front cover of the Jan issue. Via @JRRBatchelor
Who needs Max Power? Via @massimopini
Follow @CarDealerEd or @CarDealerMag to join the conversation
to buy some new stock? Get online at www.mfldirect.co.uk – it’s the best place to find the cars you want, when you need them, without missing out.
the source of ex-Motability cars. online. every day PART OF
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One of the simplest, most innovative and accessible solutions for the Consumer Credit Directive from the UK’s fastest growing motor finance company. Visit www.ccdsorted.com to learn more Lambourne House, Lambourne Crescent, Cardiff Business Park, Llanishen, Cardiff, CF14 5GL Telephone: 0844 770 4438 Facsimile: 0844 770 5120 www.carlylefinance.com Carlyle Finance, a division of FirstRand Bank Limited (London Branch) Registered in England Branch Registration No. BR010027 at 20 Gracechurch Street, London, EC3V 0BG Authorised and Regulated by the Financial Services Authority
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ARE YOU MISSING A VITAL COMPONENT? FIND OUT WHY 60% OF DEALERS TRUST US.
Everyone wants to boost their business performance, and choosing the right warranty provider can do just that. At Car Care Plan we know how important it is to keep your customers’ trust, that’s why we pay all valid claims with our no-quibble policy. It’s service like this which means we now work for 6 out of 10 dealers and have more than a million customers across Europe. And it’s why we’ve been voted the UK’s no.1 warranty provider*. To see what we can do for you call 0844 573 7591 or visit www.carcareplan.co.uk
*Voted Car Dealer Power Winner 2010, Warranties. Car Care Plan Limited is authorised and regulated by the Financial Services Authority.
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Couple buy 40 cars from same dealer
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They’re the buyers EVERY dealer wishes he had...
THIS car-azy couple are so addicted to SEATs they’ve bought 40 of them in 20 years – all from the same dealer! Retired couple Robin and Margaret Hemmant, of Drayton, Norwich, are so in love with the Spanish brand they’ve owned nearly every one of the maker’s models – some even more than once. Since buying their first – a SEAT Toledo – back in 1991 from Castlegate in Mile Cross Lane, Norwich, the new car nuts have bought at least two new motors a year! On one occasion, the pair drove away from the dealership with a new car at 6pm one evening and returned to trade it in for another at 9am the following morning! ‘People always tease us and say that we must love the new car smell and I guess there’s some truth in that,’ explained Robin, 76, a former print administrator for a firm of legal stationers. ‘Sometimes we’ve changed our car because we’ve needed to for practical reasons and other times we’ve just fancied a bit of a change.’ The pair have owned pretty much everything from a city car Arosa to the seven-seat Alhambra – with most models in between. Robin and Margaret, who only drive around 5,000 miles a year, have stuck largely with a variety of Altea and Altea XL models – their favourites in the range – with one notable exception, a black Ibiza, which John managed to prang twice in the space of a fortnight. Their only affair with a non-SEAT model came recently when they were drawn to a
Martin Hill
Net gains
used Skoda – and they even bought that from their favourite dealer. But the couple, who are showing no signs of slowing down their car-buying habits, are now looking to switch back to their brand of choice and have their eyes on a SEAT Exeo ST estate. Obviously all this is great news for Castlegate’s sales manager, Robert Bradford, who has sold them most of their cars down the years and become a close personal friend in the process. He said: ‘I guess Robin and Margaret may seem like a dream come true for a car salesman, but we’ve been dealing with them for so long now that they just feel like part of the family. ‘They’re well aware that the way they chop and change their cars isn’t the best approach from a financial point of view but that’s just not the way they operate. ‘We always try to give them a good price for their trade-in and the best deal on the new car they’re after but so long as they get the car they want the rest doesn’t really matter to them.’ Robert added: ‘I’d recommend SEAT to anyone and I have. Members of our family have had eight SEATs between them!’
Car Dealer Mag handed host of accolades CAR Dealer Magazine’s features have been recognised as among the best in the business with editor James Baggott recently taking THREE Highly Commended places in the prestigious Guild of Motoring Writers awards. Held at the RAC Club, in London, Baggott was recognised in the feature writer of the year, editor of the year and journalist of the year categories with Highly Commended places in each. The success comes on the back of a runners-up place in the Headline Auto Awards in the editor of the year category, where he was placed ahead of Autocar’s editor, losing out only to CAR editor Phil McNamara. Car Dealer was also recognised in the trade magazine of the year category too. ‘We’re a small team here at Car Dealer so this recognition means a lot to us all,’ said
Editor Baggott with BCA’s Tim Naylor
Baggott. ‘I missed out in the editor the year categories in two sets of awards, but only to two of the biggest motoring magazines in the country – Evo and CAR. To be honest, I feel that’s really a great achievement for Car Dealer – the fact a trade title was even considered alongside those great mags means a lot to everyone here.’
Here’s what you really should NOT be doing on your website
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ith the start of a new year, I thought I would take the opportunity to reiterate some of the common issues that I see with regard to websites in general, and dealer websites in particular. My suggestion is that you take a good look at your own site and ensure that none of the following apply to you... Firstly, ensure the customer journey makes sense. If they click on a link or button, does it actually take them to where they would expect to go? This sounds common sense but still remains a real thorn in the side of web users. The usual problem is that content or web items are left to rust or are not updated in some way, with the inevitable outcome being that the content is either irrelevant, out of date or ‘Too many sites not even present at all. I recently came across one just get tested franchised dealer website with in Internet three links to ‘Finance and Insurance Offers’ - all three of Explorer, and which directed me to content forget others.’ that was not even slightly F&I related. When was the last time that you asked friends or colleagues that are independent of the industry to go through the web experience of your site? I strongly suggest this is something that you do at least once a year, as the results can be eye-opening. Ask people if they managed to find the information they were looking for easily and intuitively. We have a client whose initial strategy appeared to involve making it as difficult as possible for customers to obtain certain information on used vehicles – it was simply a case of not making the information visible enough and in the right place. Next, make sure your site is tested across different web browsers. Too many sites just get tested in Internet Explorer, and forget others such as Firefox, Safari or Google Chrome. Internet Explorer does not have the market dominance it had several years ago, especially with more and more people using mobile devices such as iPads or iPhones to view web content. And while we are on the subject, have you considered how customers on such handheld devices can be catered for by your website? Finally, may I suggest that you take a lot of time and effort to write the copy that appears on your site? I’m not just talking about grammar and spelling, but try to make sure that the content is geared towards what the customer needs rather than what the writer thinks is important. Sounds simple, but all to0 often the basics get overlooked in the quest to be different!
Who is Martin Hill? Martin is commercial director at Codeweavers. Learn more about how he can help you at Codeweavers.net or call 0870 443 0888.
CarDealerMag.co.uk | 09 9:40 AM
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dashboard Winn Assist
Accident management
Questions to ask when looking for accident management
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dealership must pick the right accident management company to provide the service, and the dealership must ensure buy-in at every level within the company to the service. Get this wrong and there is a dribble of revenue and intermittent service. Get it right and revenues improve dramatically and consistent customer service enhances your brand. Sounds good doesn’t it? But how do you pick an effective accident management company? Well, you need to consider a few things first. Do they arrange and provide a full range of accident management services themselves? Do they undertake the legal aspect, arrange the credit hire/credit repair and arrange physiotherapy? ‘Conversion Most don’t – most will sell rates amongst different elements of the claim to different providers and this accident causes complications and management annoys the client. companies vary What are their conversion rates for hire, repairs and between 15 per injuries? These rates give an cent and 90 per indication as to the level of cent!’ trust which customers have in the quality of that service. Conversion rates amongst ACM’s vary between 15 per cent and 90 per cent! And what about customer protection? Are there hire/ insurance policies to cover the risk if the customer’s case fails or there is a shortfall on recovery? Is the provider of the service regulated by the Law Society? That means there will be £2m to £3m insurance cover automatically in place, while the Ministry of Justice means a minimum level of regulation applies. Do they operate a branded service where one decision is taken on the case? This is a situation where the claim is automatically accepted for legal, hire, repair and physio without there needing to be different decisions by different companies. And is the injured customer referred for immediate physiotherapy? This is popular with customers as their main aim is to recover from their injuries as quickly as possible. They usually can’t get rapid physiotherapy on the NHS. So consider if the service is provided on the basis that the costs are recovered from the other side’s insurers. And finally will they get a like-for-like branded vehicle available? This is important and can help them see the benefits of a new car!
What is Winn Assist? Winn Assist Automotive provides branded full accident management for your customers and a host of other services. Call 0845 217 2542.
Lexus CT 200h takes over Harrods windows SHOWROOM windows don’t come any more special than Harrods – and Lexus bagged four of them. Throughout December up to January 15, Knightsbridge shoppers were among the first to enjoy a close-up view of the new CT 200h. Intrigued shoppers were able to get up close to Lexus’ new hybrid and the RX 450h SUV, while another window was devoted to the latest Mark Levinson audio technology – as featured in a number of Lexus models.
A ‘Lexus Lounge’ completed the display, designed by Lexus and Harrods’ own creative team. Belinda Poole, Lexus director, said: ‘Bringing Lexus and the new CT 200h to Harrods across the entire holiday period gave us a fantastic opportunity to present our new luxury hatchback in a perfect environment and to introduce the quiet revolution of Lexus hybrid drive. ‘It helped us target key customers who value our quality, attention to detail and unmatched levels of customer service.’
Car dealer saves bespoke Land Rover specialist Overfinch bought out of administration LEADING prestige vehicle supplier Autobrokers has bought out Overfinch Bespoke Vehicles. Trading as Overfinch Leeds, the firm has had a long-standing and successful relationship with the bespoke Land Rover specialist. Autobrokers was the UK’s largest retailer of Overfinch products for the past five years, playing an instrumental role in raising the profile of the brand. Autobrokers intends to make substantial investment in key operational and product development areas. As well as a return to engineering enhancements and limited edition vehicles, the firm will introduce a new range of styling enhancements for the full range of Land Rover vehicles. Kevin Sloane, chairman of Autobrokers, said: ‘Overfinch’s 35-year history of producing high quality enhancements, for customers across the globe, represents a strong platform to expand sales and
broaden the product range. ‘There were a number of bids for the business and the level of interest in acquiring the Overfinch brand is testament to its popularity and global appeal. ‘We are committed to investing in the business to enhance the product range and our customer service and expansion of sales with both existing and new customers. ‘We would like to thank the customers and suppliers of Overfinch Bespoke Vehicles, for their support of the business over the recent past and their confidence in the workforce and future of the business.’
911 for 2011: Nothing to see here. For now... If you’re wondering where our 911 for 2011 update is, well, it’s here. You may remember we were gifted a Mercedes Benz CLK 240 convertible from the kind people at Marshall Group. The 53-reg model was bought for just £6,000 and we plan to get it up for sale for around £9k in our quest to turn nothing into a Porsche by some time this year. Problem is, that annoying cold stuff got
in the way at the end of December, then turkey dinners, presents and a man with a beard and red suit delayed things further. In short, we haven’t put it up for sale yet. But we are going to list it on Auto Trader this month at a competitive price so we hopefully shift it pretty quickly. For now, it can stay on the drive impressing the neighbours. I promise there will be more to report next month. JAMES BAGGOTT
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Why not go 24-7 in 2011? 51% of visits to dealer websites occur outside working hours
A staggering 51% of visits to dealer websites occur outside 9-5 working hours, with peak activity between 7pm and 10pm*. Using GForces 24-7 Live Chat, Peter Vardy Group wakes up to an average of 15 qualified enquiries every morning and so could you. Enjoy a fruitful 2011 and capture your missed opportunities with GForces 24-7 Live Chat. GForces works with more of the country’s Top 200 auto dealers than any other rival and has the experience, talent and technological experience to turn your websites into a key sales and lead generating tool.
* Study of 50 Top 200 dealer groups in month of September 2010
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dashboard Dealer group marks its 10th birthday with new site FORAY Motor Group has celebrated 10 years of business by acquiring its 10th Ford dealership. The timing could not be better for the firm as 2011 also marks Ford of Great Britain’s centenary. The Salisbury-based business will be integrating the former Reed of Trowbridge business into the group and has already changed the trading name to Trowbridge Ford. Foray managing director Chris Yoxon said he will be undertaking a makeover of the former Reed site. ‘There will be major refurbishment of the premises which is good news for the 25 existing staff,’ said Yoxon. ‘I’m pleased that we will be representing Ford in Wiltshire’s county town – we already hold the franchise in Wiltshire’s only city, Salisbury, where we started our business in 2000 with a management buyout of Edwards Ford and the neighbouring Andover Ford. ‘On the same day, we also acquired Ford dealerships in Yeovil, Taunton, and Bridgwater and we have become the Ford franchise holder in Poole, Dorchester, and Chard before adding Shaftesbury at this time last year. ‘As far as Foray is concerned, there’s no better way to start the celebrations of Ford’s centenary.’
Mini Pace-s itself FURTHER proof that BMW is committed to developing the Mini brand comes with the news of a coupe SUV concept. Called the Paceman, the car showcases the firm’s interest in entering the fashionable coupe SUV market – arguably the domain of Range Rover’s Evoque. The concept debuted at the North American International Auto Show (NAIAS) this month – and the timing is deliberate says BMW. ‘It is 10 years exactly since the new Mini was launched to the US market so there is a happy symmetry in presenting an all-new concept at the Detroit Show,’ said Jochen Goller, Mini director
Share watch
for BMW UK Ltd. ‘Following last year’s launch of the Countryman and the forthcoming launches of the Mini Coupé and Roadster, the Paceman Concept shows once again not only the innovative spirit and adventure among its design team, but also the potential breadth of the Mini brand as it grows and develops.’ Growth and development are the right words as the Paceman builds on the Countryman. That car’s grille is retained for the concept, as is the traditional Mini high shoulder line. But the roof
and glass treatment is new for this model and is referred to as the ‘helmet’ roof. Whatever that means. The firm says the concept has been ‘designed’ for the 211bhp, John Cooper Works 1.6-litre twin-scroll turbocharged engine, coupled with permanent allwheel-drive system. According to Auto Express, if the Paceman became a production reality the car would sit alongside the Countryman. However, BMW says there are no plans for the model to go into production. Yet.
...in association with ASE-global.com
Split between winners and losers T
here was a mixed end to trading for the listed motor retail stocks in December, capping what has been a volatile year for most. While 2008 produced large losses for most based on trading and debt covenant issues and 2009 large gains once the debts were refinanced and trading improved, 2010 proved an unstable year for share prices as the sector struggled for market affection. The star performer over the year was HR Owen which gained 67 per cent over the course of the year. 2010 produced a significant amount of change at the retailer, with a strategy review leading to a complete overhaul of the senior team and the departure of the chief executive Nick Lancaster. Another success story from an investment viewpoint has been Lookers, which gained more than 26 per cent. In contrast to some of its competitors this was a result of a strong second half of the year as the share price was buoyed by acquisition speculation at a price still well above its current trading price. While the buy-out rumours appear to have quietened it has not completely disappeared and could be something to watch.
‘The motor trade’s most volatile stock over recent years has been Pendragon and this rollercoaster ride continued during 2010.’ The other dealer group in significant positive territory was Inchcape, which rose nearly 20 per cent during the year. As with Lookers, all of this share price growth was focussed in the second half of 2010, with the share gaining more than 50 per cent from mid-year lows. The company’s geographic diversity has been viewed as an overall positive in the current economic climate helping to boost overall sentiment. Caffyn’s has showed a small share price increase over 2010 of five per cent. However this remains a very thinly traded stock with the recent gains being triggered by a company repurchase of shares. The market for the recently listed dealership consolidators has been considerably more rocky. Vertu closed the year 25 per cent down on its opening price
with the positive kick from strong earnings numbers released in the autumn now having largely been given back. Despite this the company has strong cash reserves and continues on the acquisition trail. Suffering a similar fate is Cambria which has dropped 30 per cent from the flotation price despite recording a slight rally in late December on the back of an acquisition of shares by the finance director. The motor trade’s most volatile stock over recent years has been Pendragon and this rollercoaster ride continued during 2010. Despite gaining more than 50 per cent during the first five months of the year, all of these gains were given up during the remainder of 2010, with the stock coming under increasing pressure as the market digested the post-scrappage sales environment. It looks like this trend will continue this year with the market waiting to see volume and profit levels before backing any sustained growth across the sector. Even with improved general sentiment and enhanced profits, there are still likely to be significant winners and losers. If you have any questions on the above, call me on 0161 493 1930. Mike Jones, ASE director
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Couple won’t share a Clio – so buy two! NEWLY appointed Renaultsport specialist SJ Cook & Sons has turned its hand to matchmaking. The Bristol-based dealership, which became the UK’s 12th Renaultsport specialist at the end of 2010, has handed over the keys to two new Clio Renaultsport 200 Cups to husband and wife Paul and Teri Arpino. Despite being married for 17 years, Paul and Teri from Yate didn’t fancy sharing a hot hatch so they decided to buy one each, both with personalised number plates
beginning with CL10. ‘People probably think we don’t like sharing but that’s not the case at all,’ said Paul. ‘We often use each other’s cars and we just love how much fun they are!’ SJ Cook & Sons Renaultsport sales expert James Bealing said: ‘It’s great that we’ve been able to help out Paul and Teri and to also meet a couple who are so passionate about Renaultsport.’
Has your dealership got any mad car sales stories? We’d love to hear them. Email james@blackballmedia.co.uk
James Litton
Trader Tales
Hyundai boss: We D will match record sales again in 2011
All PR is good PR... or is it?
Tony Whitehorn predicts another year of growth Hyundai Motor UK’s managing director Tony Whitehorn predicts the maker will match last year’s record figures again in 2011. The UK-arm of the Korean firm sold 62,000 vehicles in 2010 – 5,000 more than it did in 2009 at the height of the government’s scrappage scheme – but Whitehorn believes Hyundai can match that again this year. ‘It took us a little by surprise to be honest,’ Whitehorn exclusively told Car Dealer. ‘We were planning to do about 55,000 vehicles in 2010 – less than the 57,000 we did in 2009. By doing 62,000 we really showed that the Hyundai brand has taken a bit of a step-change. ‘On that basis it does bode well for us in what’s going to be a very tough year. It is going to be hard – 2011 will see the market down around seven or eight per cent. I am a bit of a doom and gloom merchant! ‘So how are we going to maintain 2010’s figures? Well, mainly with new product – ix20, i40, facelifted i10 coming in March – and then other areas such as Motability which is going to be a growth area for us, and fleet will be too.’ Hyundai will also be spearheading a new marketing campaign to ensure it meets 2010’s record figures. ‘We’re going to be changing our marketing strap-line. We’re going to be spending a fair few million pounds on a brand-new global brand strategy,’ Whitehorn added. ‘We are changing the face of Hyundai, pushing the
Hyundai is expecting the Veloster coupe, top, this year as well as the i40 brand, and that will happen in March/April.’ Whitehorn was also of the opinion that 2011 would see the growth of the corporate market too. ‘Corporate – by that I mean small businesses – is where the growth is going to come in 2011. ‘Small businesses aren’t quite so affected by the VAT rises as they can write it off, so they will grow rather than the retail customer – that’s where dealers should be fundamentally concentrating their efforts.’ Hyundai is also certain it will gain more dealers in 2011 too. ‘By the end of the year we plan to have 165 dealers,’ he added.
uring my motor trade sales apprenticeship, I acquired the affectionate nickname of ‘the geek’ long before it was cool. This was purely down to the fact that I had been to university while my colleagues were alumni of the university of life and would be lucky to scrape a pass. Back then, a geek was someone who had their name sown into their socks, wore the sort of glasses that could withstand an IED and who actually knew that a Bunsen burner was for something other than setting pencil cases on fire. However, two years ago I bought a left-hand drive Mercedes and I turned into a REAL geek... My website designer, for the sake of this article I will call him Adam (that is actually his real name, so my apologies for the lack of creativity) had introduced me to the world of Google Analytics so I could see where traffic to my site was ‘Cue a slag coming from. This Mercedes was a minter, fest where he 25 years old, one owner, questioned my primrose yellow and proper history. Analytics told me that credentials and I – humble as ever there was a large interest in the car from a motoring forum – questioned his and my daily web traffic went human worth.’ bananas. I set up a log in and password to the forum and I officially started wearing trousers which were too short for my shoes. If you have had no experience of motoring forums, they are like the masonic lodges of the car industry. Weird. Anyway, over the next few months I observed, read and occasionally commented on various threads and gradually got to know the terms and inside jokes. Then I started a thread called ‘What planet do some car buyers live on?’ With hindsight this is probably the most incendiary title I could have written. In my OP (original post) I posted an email conversation with a guy who had bid me £1,500 off a £6k car which had gone a little unsavoury. To be fair to the customer, he was as polite as could be before he hammered my twig and giggleberries, but I bit and sent him a rather flippant email back. Cue a bit of a slag fest where he questioned my business credentials and I – humble as ever – questioned his human worth. Anyone who has ever sold cars for a living will hopefully understand the point of my question but the motoring masons did not. In metaphorical terms I was stripped naked, tied on horseback and paraded through the streets of London with the angry townsfolk hurling flaming turnips in my direction. In three days it drove literally thousands of people to my website though. All PR is good PR. I think...
Who is James Litton? James runs theinternetcarlot.co.uk. He‘s been in the business for 12 years and always has something to say about the industry he loves.
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[dashboard]
Chrysler’s new dawn Fiat boss Andrew Humberstone talks exclusively to Car Dealer about his plans to turn Chrysler around, reports JAMES BAGGOTT
F
iat Group boss Andrew Humberstone thinks the ‘worst is over’ for the car industry. And the man now responsible for steadying the Chrysler ship in the UK believes dealers should be investing their cash in preparation for the upturn. In an exclusive interview with Car Dealer, Humberstone said he hoped the market will look resolutely more positive in quarter three of 2011 and continue upwards from there. He said: ‘I am very confident the worst is over. We’ve weathered the storm. Now it’s a time to regroup, refocus and seize the opportunity. It’s those that plan today who will succeed tomorrow. ‘I would argue that 2008/2009 was where the market crashed and 2011 will be where you’ll start to see a recovery. ‘It will be a difficult year, absolutely, but by the back end of the year, certainly by 2012, we’ll be on the way up again. That’s why now is the time to get in, not get out.’ Humberstone did admit that Chrysler – now part of the Fiat Group and under his control in the UK – would be lucky to end 2011 with sales figures on a par with 2010. ‘I’m not convinced we’ll see growth,’ he said. ‘I see a market of between 1.85-1.9m, the SMMT sees a market of 1.95m. But I think that really depends on how the big makers react. ‘Sales are declining so if I’ve got the same volumes in 2011 then by definition I’ve grown in a declining market. If I can maintain the status quo then I will feel I’ve achieved something.’ NORMAL So when does he think things will get back to normal? ‘Well, I think that normal is a big word,’ he said. ‘2013/2014 will see volumes increase, but in quarter three I think things will be looking a lot more positive. A lot depends on what happens with interest rates and the appetite of banks to lend money. We need the feel-good factor back. People have got money – they’ve just got nowhere to invest it.’ Humberstone expects to grow the Chrysler dealer network from 48 dealers to 70 by the end of 2011 (see story far right). But with sales expected to be tough for the first half of the year, does he think this is the wrong time to be
Chrysler’s image drive CHRYSLER Jeep dealers are the key to improving customers’ perception of the brand’s reliability – and training will help. Nigel Land, brand director for the marque, said: ‘There has been very little investment in training and this has to change. The dealer network has an important role to play in this and we will invest hugely in CSI, sales and technical training.’ Fiat Group boss Andrew Humberstone added: ‘I don’t think we actually make a bad car now. We just have to improve our perception among customers – our dealers are key to that.’
‘If I had the money, I’d start buying up dealerships now because some are getting into trouble.’
looking for new retailers? ‘No, I’d say on the contrary,’ he said. ‘I’m an eternal optimist and would say now is the time to get in. If I had the money, I’d start buying up dealerships now because some are getting into trouble. I think it’s a good time to invest.’ Humberstone is pinning his hopes on a range
of fresh cars convincing new partners to get on the Chrysler Jeep bandwagon. The marque will launch four models in the UK in 2011 – two are rebadged Lancias, the Ypsilon and Delta, and there’ll also be a new Grand Cherokee and Compass. These will help the firm achieve ambitious sales targets it has set itself. >
Fiat Group’s Andrew Humberstone
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CHRYSLER DELTA The Lancia Delta will be rebadged in the UK as a Chrysler. A new grille and specification tweaks will mean it can arrive in June.
Recruitment drive now on as boss aims to find 22 new dealers CHRYSLER Jeep has begun a major dealer recruitment drive to boost its network in the UK. Unveiling plans to dramatically increase sales with a host of new models in 2011, the firm said it plans to add around 22 new dealers to its network. Currently the brand has 48 sales points across the UK, but the maker expects to increase this to 70 by the end of 2011 and up to 90 by the end of 2014. These will include ‘brand centres’ where both Chrysler and Jeep models will be sold alongside Fiat models. ‘We will expand our current sites and welcome new partners,’ said Chrysler Jeep brand director Nigel Land. ‘London, Birmingham and Bristol are key areas we plan to fill.’ DODGE DEAD
Land also confirmed the Dodge brand has been canned in the UK as of the end of 2010 but revealed plans for four new Chrysler models next year. This will include the Ypsilon city car and Delta in June. ‘There is no doubt the market will be tough in 2011. We’ve set ourselves modest targets, but it will still be difficult,’ he said. Currently the firm’s dealer network covers 67 per cent of the UK – 90 dealers would give the marque 90-95 per cent coverage which will help it achieve its ambitious sales targets. Chrysler Jeep will launch a host of new models in 2011. From far left, Compass, Grand Cherokee, Patriot, Delta. Right, the ypsilon, and, below, a side profile of the refreshed Grand Cherokee
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[dashboard] Jeep Wrangler has been given a fresh look In 2009 the firm sold just over 5,000 models. It hopes to increase that to 15,700 models in 2012 – made up of 11,500 Chryslers and 4,200 Jeeps – and by 2014 increase again to a combined total of 23,800 units. Humberstone said: ‘Chrysler represents a huge opportunity in the uK. At the moment the important thing is getting the models into dealers for them to sell. ‘We have to have the volume of vehicles for the dealer network so that they can make our 29,000 target a reality. ‘We need to support our network and that means getting new product to market quickly. We have a five-year plan and the new cars planned for 2011 are aimed at bolstering the network.’ So what does this mean to fiat dealers? Well, they certainly won’t all be given the opportunity to sell Chryslers. Only when there’s a business case for a franchise outlet selling both marques will this be considered. ‘It’s about where there are open points,’ said the fiat Group MD. ‘It’s about where there is a geographical gap. If a fiat dealer happens to be in that gap and puts his hand up then, yes, that would obviously be preferable. But still then it Andrew Humberstone will come down to whether the location and size allowed to continue. of showroom is right.’ He added: ‘We don’t want to start terminating And Humberstone confirmed that where dealers and upsetting the network. We want as there is currently a fiat dealer and Chrysler much stability in the network as possible. The dealer in the same town they would still be OnTarget_MT_1302:Layout 1 10/2/09 11:18 Page 1
‘Chrysler represents a huge opportunity in the uK. We need to get models into dealers now.’
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idea is to grow, not cleanse. ‘feedback from the network suggests that ypsilon and Delta will be the biggest sellers. We think those cars will give dealers the critical mass they need to improve their economics.’ So it seems there are exciting times ahead for Chrysler under the stewardship of Humberstone’s fiat Group. As to whether the marque will be able to achieve those ambitious sales targets, only time will tell. [CD]
Reasons to be Cheerful, p51
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STAY AHEAD You want your website to shift gear and put you in front. But to do that, it needs to rank highly with Google and other search engines. And be easy to use. We’ve been building bespoke websites exclusively for the motor industry since 1999. A number of our sites for dealerships have won awards. And being automotive professionals ourselves, we know what your site needs to help you sell more cars. Find out more by calling 0845 2508820 or visiting www.ukwebsites.net Email: support@ukwebsites.net
Part of
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finance Finance news Car Dealer rounds up the latest stories from the world of car finance
More dealers SAF Approved A CLUTCH of dealer groups have achieved SAF Approved status. Under the FLA’s Specialist Automotive Finance initiative, Stratstone, Listers, Robins & Day and Agnew are now approved, joining two thirds of the top 20 UK dealer groups. The inclusion of training on the Consumer Credit Directive in the SAF reference material and free online test has helped create a surge in demand from dealers, says the FLA. The firm introduced a CCD training module to support industry compliance and help dealers prepare for the new legal requirements. ‘There has been a marked increase in commitment from the big UK dealer groups to raise the bar on the standard of service that they offer customers,’ said Paul Harrison.
Used car finance rises yet again THE number of used cars sold on finance rose for the fourth consecutive month, reveal FLA figures. Used cars sold on finance rose by seven per cent in value and 11 per cent in volume compared to October 2009, while new cars dropped 11 per cent. The FLA says that this rise is due to a shortage of used cars after the ending of the government’s scrappage scheme and the 15 per cent VAT rate. Consumers have turned to the used car market when replacing their cars. Meanwhile the number of new cars bought on finance by businesses fell by 11 per cent, and the business used car finance market reported volumes down by 34 per cent over the same period. Paul Harrison, head of motor finance, said: ‘The continued revival of the used car market reflects a return to ‘traditional’ buying habits.’
Deal finder New year deals
Nissan Juke IT seems customers can’t get enough of the Juke crossover. In Issue 34 we revealed that Nissan had received an incredible 3,000 pre-orders for the car, and dealers have been struggling to satisfy demand ever since. Nissan’s latest round of finance offers includes the Juke – which is only bound to add to the desirability of the car. To start with the customer must put down a deposit of £7,683.66 on the attractive 1.6-litre Acenta Sport. Then the customer must find 36 monthly payments of £205 charged at 5.9
per cent APR. The total amount payable for the customer is £15,063.66, and then they can drive away in one sought-after motor.
Nissan Juke 1.6 Acenta Sport Price: £15,063 Engine: 1.6-litre, petrol 0-60mph: 10.6s Max speed: 111mph MPG: 44 CO2: 147 g/km
Mini Clubman ALWAYS the quiet, unassuming member of the Mini range, the Clubman has been blighted by controversial looks, an expensive price-tag, and one awkward rear passenger door. So it comes as a little surprise to learn that the Clubman is part of Mini’s new raft of finance deals designed to make Mini ownership just a little more affordable. If registered by March 31, the customer is entitled to the deal that consists of an initial deposit of £2,999 with a dealer contribution of £708.
Then 35 monthly payments of £219 at 6.8 per cent APR, with an optional final payment of £6,571 is charged if the customer wants to secure the car. The total amount payable by the customer is £17,235.
Mini One Clubman Pepper Price: £17,235 Engine: 1.4-litre, petrol 0-60: 11.2s Max speed: 114mph MPG: 52 CO2: 130g/km
Kia Soul All the deals here are for cars that are a little… different, shall we say. Arguably the most different of all is Kia’s Soul – is it an MPV, and SUV, or a just an estate car? We’ll leave that for you to decide, but Kia have built a car that gets a reaction from customers. Bought by young people and old alike, it has been a real success for the maker – and decent finance deals have helped! Kia has done it again as their latest offer on the Soul will give even more of a reaction from customers. Available on the Soul ‘1’ an initial deposit of £6,105 is needed, followed by 36 monthly
payments of £165. But this is the best bit… zero per cent APR is charged. Total amount payable for the customer is £12,045 meaning the customer drives away in a ‘different’ car and enjoys a seven-year warranty to boot.
Kia Soul 1 Price: £12,045 Engine: 1.6-litre, petrol 0-60: 10.6s Max speed: 110mph MPG: 43 CO2: 153 g/km
ervice Valuing – Valuing Service You! – Valuing You!
the first choice for First theResponse UK’s smallFinance to medium is the sized first dealer choicemarket. for the UK’s small to medium sized dealer market. 20 | CarDealerMag.co.uk CarDealerIss35.indd 20
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!
...in association with
Jim
Meldrum A few questions to ask yourself as we face 2011
I
hope 2011 turns out to be a prosperous one for you and your business. Unfortunately, it looks like it is going to be an uphill struggle for a great many car dealers – so to find out if you are ready to take on the challenges ahead I have put together a few questions. With unemployment now more than two and a half million (and looking set to go much higher), how are you going to counteract the inevitable reduction in potential buyers in the marketplace? With rising inflation and the likelihood of increased interest rates depressing the economy, how are you going to ensure customers will want to buy from you rather than your nearest competitor? With the introduction of ‘How many the irresponsible lending of your repeat guidelines shifting the way customers will finance companies look at customer’s ability to repay struggle to come their car loans, how many of back again this your repeat customers will struggle to come back again year?’ this year and how many will have to stay away for another year or two? With VAT now at 20 per cent and squeezing every household budget, what business changes do you propose making to meet the growing demand for cheaper cars? With the high street lenders continuing to hold a tight leash on non-prime lending, who are you talking to about providing finance to the ever expanding customer numbers with that credit profile? If you have managed to answer all of the questions easily and you have robust plans in place to tackle these issues then I’m sure you’ll have a great 2011. However, if you answered too many of these questions with ‘I don’t know’ then I suspect you might very well be looking for a new job before the end of the year. Call us anytime for free and impartial advice. Read Sub-Prime Time with Don Brough, p66
Who is Jim Meldrum? Jim is regional sales manager for First Response Finance. Call him on 07917 460 111 or email Jimm@frfl.co.uk to respond to this column
Tel: 0844 8730819 Tel: 0844 8730819 Web: www.frfl.co.ukWeb: www.frfl.co.uk CarDealerMag.co.uk | 21 CarDealerIss35.indd 21
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dashboard
Alex Goy
All Torque
What is it about snow that turns drivers into complete idiots?
T
ime for a change, everyone. December’s snow showed the public just how dicey driving can be if you’re not well prepared and it was shocking to see just how quickly normal drivers turn into complete muppets when the white stuff starts falling. Bless them. Why do people become so automotively inept at the first sign of snow? Lack of experience is one factor (we can’t all grow up in Finland, you know) and so is over confidence in your car. In the average driver’s mind owning a 4x4 = godliness in bad weather. This, sadly, is not true. Because, like some other things I dare not mention in print, it’s all down to the rubber. Many people (including my mother, scarily) keep their cars shod with summer tyres all year ‘Whether they’re round. This suits low mileage drivers (the elderly, etc) because in a hatchback or they don’t have to venture far a Range Rover if beyond the corner and if the weather’s bad they simply their boots aren’t won’t bother. up to scratch But commuters have to go they’ll slither a little further afield. Funnily enough ‘I’ve got the wrong over the road tyres’ isn’t a decent excuse like a freshly for missing a week of work, so tasered student many just keep on going with summer shoes through the protester.’ powder. And you know what? Lots of them crash. Whether they’re in a hatchback or a Range Rover if their boots aren’t up to scratch they’ll slither over the road like a freshly tasered student protester. So winter tyres are the way forward. It’s legislation in Germany. In October they swap their wheels for something more suited to low temperatures and carry on trucking through all conditions with (in some cases) 40 per cent more grip than summer tyres. This means Germany buys an awful lot of winter tyres. However, that creates a problem for UK motorists because, until recently, British drivers didn’t care about changing tyres. So there hasn’t been much demand for cold temperature shoes at all. As such, when the weather turned nasty and people decided to panic buy them, there were precious few to go round. This leads me to my point. For next winter get as many in stock as possible, you’ll need them. Trust me. Also, why not swap your stock to winters from October-March? It’ll show the cars in a better light during chilly test drives and when spring rolls round your customers’ cars will need some new shoes. And I wonder where they’ll go..?
Who is Alex Goy? He‘s a motoring journalist with a lot to say. He also produces a brilliant podcast. Check it out by typing bit.ly/alexgoy into a browser
MG uses Facebook to chat to buyers ahead of launch Q&A session online used to promote firm’s new cars MG MOTOR UK has ramped up interest in the brand by holding an online chat on Facebook. Using the popular social media website, as well as Twitter, the company held an online question and answer session where members of the public could pose questions to MG Motor’s sales and marketing director, Guy Jones. Over a period of 45 minutes, he was inundated with questions ranging from details about the new MG6 to how MGs would be sold in the UK. By far the most popular question posed was for a definite date of the launch of MG’s first car since the marque’s demise in 2005 – the MG6. ‘The full launch is planned for April to allow us to hold all the launch activities in the UK clear of the bad weather – we hope!’ said Jones. ‘There will also be some VIP previews at dealers starting from January.’ Details about a diesel version of the MG6 were also discussed: ‘The diesel version of the MG6 is planned to be launched 12 months after the petrol model. ‘With the recent increases in the price of diesel, we are seeing an increase in interest in the petrol model from buyers who do not use their vehicles for high mileage.’
European availability of the MG6 was also confirmed. ‘The launch into continental Europe will take place when we have availability of the diesel models in the second half of 2012. ‘We already have detailed launch plans with a number of European importers that will be developed and communicated over the coming months,’ said Jones. It was also revealed that MG Motor UK is actively looking for new dealers. Jones said: ‘We are actively recruiting retailers to add to our current network of 40 dealers as we speak. ‘There has been significant interest and we have around 25 new dealers planning to take the franchise at the moment. We will have new dealers in many key areas where we currently do not have a dealer before the launch of MG6.’
Network Q gets Vauxhall’s lifetime warranty VAUXHALL is making second owners feel just as looked after with a new lifetime warranty for used cars. After the introduction of its Lifetime Warranty to new car owners earlier this year, the firm is now making the warranty available on used cars. The lifetime cover applies to the second owner of any Vauxhall purchased through Network Q that has covered less than 30,000 miles and is under 12 months old. Warranty coverage continues until the car reaches 100,000 miles. Vauxhall MD Duncan Aldred said: ‘Vauxhall is so confident of the high quality levels built in to its current range of cars that it is now offering its new ground-breaking lifetime warranty on used cars. ‘The Network Q Lifetime Warranty is designed to protect our customers against unexpected costs and to give reassurance and peace of mind long after they’ve taken
delivery of their used Vauxhall.’ The powertrain, steering system, brake system and electrical equipment are all covered by the Network Q Lifetime Warranty. To keep the warranty valid, owners need to visit a Vauxhall retailer annually for a free vehicle inspection and sustain the manufacturer service schedule. The news came two days after Vauxhall were forced to issue a press statement denying reports that the Advertising Standards Authority had banned its Lifetime Warranty advert. Vauxhall said: ‘The ASA requested that a small number of amendments to the advertising creative should be made to clarify the terms and conditions. In line with this ruling, the Vauxhall Lifetime Warranty Advertising creative was amended in line with ASA recommendations prior to Christmas and this very successful campaign continues to run on all media platforms.’
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big mike
Saluting Freds in sheds – heartbeat of the car trade I
f there’s one thing a recession does for a nation’s conscience, it brings out peoples’ survival instinct. Especially when jobs are going left, right and centre and nobody is really quite sure, two years in, when it’s all going to end. We’re becoming ever more dependent on our ability to keep on going, and that can only be a good thing for a nation that, until now, has only been concerned with problems like Maria, or who will win X-Factor, or which erstwhile unheard-of pseudo-celebrity next gets to eat a bucket of earwigs. In my line of work, survival is everything. In 2011, I celebrate my 40th year of pushing tin. I’ve done the lot, from main dealer sales manager through to car wash/Ispon P38 boy on a grubby little car lot. I have to say, too, that I prefer the grubby car lot to the glass-panelled gin palaces so beloved of franchised dealers. To me, they’re just a little bit more real – for every shiny showroom, there’s a bloke with a favourite layby and a big box of fluorescent cardboard. Cut through the crap, and we’re all the same. Which brings me to the unsung heroes of the used car industry. Freds in Sheds. Often grubby, more often than not, little (though I’ve no idea why) and uniformly dressed in blue boiler suits with carefully cultivated five o’clock shadows, Freds are the real stalwarts of the used car market. Unless you’ve got the might of a franchise behind you, and all the diagnostic equipment that goes with them, it’s guys like this that keep the industry going. My own Fred is a cracking little chap by the name of Dodgy Tony. I’m not sure if that’s the name on his passport or birth certificate, I suspect not, but to me he has always been known as such and always will be. I don’t even know his real name, as, in the seven years I’ve used him (which began one day when I had to find a cheap van, quickly, and he happened to have a shabby but mechanically perfect Citroen C15 in his favourite layby) he’s never accepted a cheque. There are good reasons for this. A few years back, his wife ran off with a builder at the same time as he had a VAT inspection on the car dealership he then ran. No man can survive both a VAT Inspection and a divorce without going bankrupt, so that’s exactly what he did – and since then he’s worked out of a shed on the back of a farm, payment strictly cash terms within seven days. I’ve never found out what happens if you go beyond those seven days. I suspect nothing, as Dodgy is too nice a bloke to send the boys round, but I wouldn’t do it to the poor chap anyway, as he’s so unbelievably cheap. The main reason he’s so valuable, though, is his resourcefulness. With no expensive diagnostic equipment, if a car isn’t running right he’ll simply go to a scrapyard and get all the bits he thinks could be on the blink, and patiently work through them until he finds out which bit it is that’s playing up. Then he’ll charge you a random amount – not an hourly rate, just £50 here or £100 there. The biggest
It’s dealers like Fred who are the real heartbeat of the motor industry and we all know one too
‘For every shiny showroom, there’s a bloke with a favourite layby and a big box of fluorescent cardboard.’ bill I’ve ever had from him was £350, and that was to replace the entire front hub assembly on my trusty old Land Rover Discovery tow vehicle – a job that would have been £1,250, or the car’s entire worth, at my local Land Rover specialist. If you’re running a small business, as I am, then guys like Tony are invaluable. Okay, so you might not get a receipt off them, but for the trifling amount of cash you have to take on the chin, compared to the equivalent ‘official’ bill, you’ll save a fortune. And if you’re lucky, you’ll even end up with a working relationship, as we have, where said Fred-in-a-Shed buys broken cars, fixes them and sells them to you more cheaply than you can get them down the auction. And even better, you know they’re in good working order as the Fred-in-a-Shed’s reputation depends on it. And when you can’t advertise your business or your whereabouts, reputation is everything. Word-ofmouth rules, and to Freds in Sheds everywhere, Big Mike (and most probably Dodgy Tony) salute you!
Who is Big Mike? Well, that would be telling. What we do know is he’s had 40 years in the car trade and picked up some seriously funny tales along the way.
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s we enter a new year, no doubt everyone has different priorities when it comes to business development. Every year brings new challenges but hopefully new opportunities come with them. Increased sales are going to need increased lead generation, which usually means increased spending. Just getting customers interested in car buying is quite a challenge... Clearly websites are absolutely pivotal in capturing customer attention – an area given deserved attention by this magazine. It has become apparent that as the internet experience becomes more sophisticated, then so does the expectation of the car buyer that dealers will keep up. After all, we are expecting them to spend thousands of pounds based initially on what’s displayed on a website. My concern is that the spending can be unnecessarily ‘If finance inflated in this area, and integration consideration needs be taken on how it is spent and certainly seems a sensible who with. step for you, No doubt one way to please get in improve a site is to integrate touch because finance calculators that give the customer an interactive we will work experience, and allows them with you for to thoroughly examine the power of their budget by free! Spend self configuring PCP options the money on directly in the comfort of something else.’ their home. Realistically this is going to be a requirement of all customers soon, but it doesn’t mean that large sums should be invested in it. While it certainly helps the customer appreciate what is possible, there is little evidence to suggest it will help sell enough extra units to make the financial investment in it worthwhile. The question would still remain as to how software companies can create a joined-up environment that allows the user to quote, apply and have the application dealt with efficiently. This is surely easier if the provider of the technology also provides the finance product. It is certainly more attractive if the provider of both doesn’t charge a penny for the privilege. At DSG, finance is our background but technology our speciality. We can integrate, provide the calculators and we will deliver on the finance side, therefore helping the understanding of how such technology is best used on an ongoing basis. If finance integration seems a sensible step for you, please get in touch because we will work with you for free! Spend the money on something else.
Who is Richard Hoggart? Richard is managing director of DSG Financial Services. For more information on what his firm can do for you call 0844 880 0660
Makers roll out VAT-busting deals to boost sales As tax rises to 20 per cent, car firms move to keep sales flowing WITH VAT just gone up, car manufacturers have been doing their best to make dealers’ lives easier by enticing customers through the door with new deals. Since the beginning of winter there has been a whole host of mainstream manufacturers competing with each other to offer the best deals. Land Rover got the ball rolling with its ‘VAT freeze’ offer that aimed to protect its customers from the rise. Available across the range right from the Defender to the Range Rover, if the vehicle can be delivered by the end of March, the maker pays the VAT. The 2.5 per cent difference is jointly funded by Land Rover and its participating dealerships. Another manufacturer vying for customers’ money is Vauxhall which announced a VAT discount in early December. Called the ‘Vauxhall Countdown’, the firm is offering a 20 per cent discount off list price, before options, on the majority of its most popular models valid until January 31, 2011. ‘We’re committed to reducing the pain of the latest VAT rise as much as possible,’ said Peter Hope, Vauxhall’s marketing director. ‘Vauxhall Countdown is a no-nonsense 20 per cent discount that applies across almost all models in our range. It has instant appeal for all our customers and makes ownership of some of our latest, award-winning cars even more attractive than before.’ Typical offers include the price of an Astra 1.4 (100PS) Exclusiv dropped by £3,190, while the Insignia VXR plummets by £6,165 to £26,150. Honda has also launched a VAT offer to ease dealers’ cash flows with deals available on selected models. All CR-V, CR-Z, Insight and Accord models and selected Civic
variants were available at the 17.5 per cent rate, if ordered by January 31. Meanwhile Subaru has not passed on the VAT rise to its customers, stating that they would ‘absorb the rise in sales duty itself in most cases’. Seat began 2011 by announcing a raft of ‘refreshed’ VAT-free offers which originally began in 2010. The offers were complemented by another half VAT deal that amounted to a 10 per cent discount on selected models, and also zero per cent finance deals on selected Seats. The cut-off date was also extended until March 31 to give customers the best opportunity to take advantage of the offers. Seat UK’s head of operations Richard Harrison said: ‘The exceptional success of our VAT offer towards the end of 2010 meant we were understandably keen to continue the momentum into 2011. ‘Our dealers up and down the country have been busier than ever and now, with the announcement of these great new retail offers, I’m sure they can look forward to a fantastic start to the New Year.’ And always keen to give its retailers a good deal to offer customers, Hyundai has been the latest manufacturer to keep the buyers coming. The Korean firm has announced it will pay the 20 per cent VAT on selected i10, i20 and i30 Comfort models. And we’re pretty sure these deals won’t be the last as makers clamour to keep sales flowing. Reasons to be Cheerful, p49
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Survey: Green tech is car bosses’ biggest priority CAR executives say growth in 2011 will come from developing new products and technologies, a survey has revealed. Accountancy firm KPMG’s automotive executive survey quizzed more than 200 global car makers. It revealed that investment in new power train technologies – such as hybrid and electric – remains a key priority for 93 per cent of those asked. Some seven in 10 executives said they would enter into ‘strategic alliances’ to fund the costs or to secure the necessary technology. That means more car manufacturers could be working together to develop this expensive technology. However, more than half of the respondents believe an ‘affordable’ electric vehicle will not be available until after 2015 without
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Lexus LS600h
government subsidies. Mike Steventon, automotive partner at KPMG, said: ‘One factor is common worldwide – the need to continue to develop the technology that will produce efficient, affordable electric vehicles. The challenge is whether, in this period of fiscal belt tightening, governments can afford to subsidise the introduction of electric vehicles.’
Around 80 per cent of respondents also said that hybrids – like the Lexus LS 600h, pictured – and electric vehicles would be the biggest growth category in the next five years, many believing that continued support from government will occur. Four in 10 surveyed expected government subsidies to tail-off in the future, with only a quarter expecting it to rise. It was also revealed that 80 per cent of respondents expected Chinese auto brands to increase global market share by 2015, while two in five expected Chinese cars to break into other markets in two to five years. The majority of respondents, however, said China would take the lead as the world’s largest car market by sales volume and production in just five years time.
BEN ball raises £260,000 THE 76th annual BEN Ball resulted in £260k being raised for the automotive industry charity. The night saw more than a thousand industry leaders and guests dig deep for their industry charity, raising the highest amount for four years. BEN’s chief executive David Main said: ‘Every aspect of the ball was incredible. We saw the number of attendees increase dramatically, showing how much the industry is behind their charity. ‘With your help the night made a wonderful £260,000 – an amount which will make a huge difference to the lives of our colleagues in need.’
New Saab dealer
SAAB has opened a new dealership in Inverness. Ness Motors will offer the full range of Saab vehicles as well as providing full servicing, MOT testing and an after sales department. Chris Rankin, managing director of Ness Motors, said: ‘We are pleased to open this new franchise and see great potential for it.’
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Car Dealer on TV! Well, sort of... Log on to our website to see what we’re talking about
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ar Dealer magazine has launched a new video portal on its website – hosted by Autos On Show. The clever software is used to display our featured videos which have been produced to coincide with some of the biggest features we did last year. There are separate channels in the portal – which is accessed by clicking on the mini video on the homepage – including ones for news, features and road tests. In the features channel you’ll find the Making of Project Stealth, the car we took to Monaco for Bangers4BEN, the auction of the cars for the charity, as well as our Banger Racing in a Hyundai i10. Also on the portal is our road test of the Audi R8 V10 Spyder vs Porsche Boxster Spyder and the editor’s drive in the incredible Lexus LfA at last year’s Goodwood festival of Speed. Autos On Show, a firm which offers dealers the same portal so they can display their stock online, helped integrate the video software into our website. It was very easy to do and our web team had it up and running in just a few days.
‘It has been great working with the Car Dealer Magazine team to get our TV platform on to their website,’ said Adam Price, MD of Autos On Show. ‘It is also a fantastic way for us to demonstrate that our system can be used for much more than just vehicle spins. Businesses can stream full videos about their services and products and, in this case, car reviews. ‘The platform works extremely well on the Car Dealer website and really enhances their offering to their readers. Their videos are lively, colourful and informative and we are very excited to be their streaming media partner.’ Dealers can utilise the software on their sites to display their products in a unique way. With a simple set-up, dealers can get a full 360-degree spin of stock visible on their website in under 60 seconds. Prices depend on the number of vehicles you want to get on to your site – less than 500 per month is just £3 per car; more than 500 is £2 per car. It’s as simple as that. We’ll be adding more videos throughout the year to our portal – which can be found by typing bit.ly/cardealerTV into a web browser – so make sure you keep checking the site out!
For more information on the software visit autosonshow.tv or call 0800 644 6894
Cambria Wins 5-Star Used Car Expert Dealer Award Over 2m used car buyers visit UsedCarExpert.co.uk every year. The Used Car Expert Dealer Awards are a clear and simple way to help those buyers tell quality dealers from dodgy dealers. Is your dealership eligible for an award?
Find out at www.UsedCarExpert.co.uk/dealer
Ian Godbold accepts the award for Cambria’s Motor Parks.
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Infinite possibilities MARTYN C0LLINS speaks to Infiniti VP Jim Wright about his plans to expand the brand in the UK
‘It can be easier to establish a certain level of customer service when you have no history, than it is when you do.’
With the first UK Infiniti Centre opened in Reading over a year ago, how is the brand performing? It’s quite a slow start, but we have just opened in Birmingham, Piccadilly and another site in Glasgow. This year will see us going to 10 or 11 sites across the country. We’re targeting a very small segment of the market – six-cylinder engines only. Roll out in the uK is specifically a function of two things. One, as it is in the rest of Europe, the introduction of new product – we’ve been progressively introducing new cars and new powertrains. The second one is because we have such a small network that finding the right site is really critical – it’s like finding any proper retail unit, its location, location, location that’s key. Where we open is very important to us and, despite what’s happening in the economy, finding that type of property is still quite challenging.
Can you tell me Infiniti’s strategy for the UK for 2011? We launched a new segment Sedan – M, with petrol and diesel engines last October. In April we’ll launch this car in hybrid form as well. So, it will have three powertrains. In terms of our communication activity, we’ll start to build the awareness of the brand. Also, I think the other significant thing for the uK is the availability of diesel engines. This is very important as the petrol engine segment is very small and obviously the fleet market is a big part of the uK industry. Secondly, a B-segment sedan is still a big part of the marketplace – this will help us get more cars on the road.
Are you concerned about the VAT rise and how do you think this will affect the UK’s new car market? I hope it will affect us less. I have to say, a lot of the business in our segment of the marketplace is leasing. So from that, I guess in the customer’s mind he’s worried about the monthly running costs of his vehicle. So I think the impact of that additional 2.5 per cent will probably be less. The more expensive the car, the less price conscious people are becoming. I think what you’ll see happening to the market will be the same as across the continent where the premium market is well, and recovering, at a different timeline to the mass market. Scrappage incentives and so forth, mean manufacturers have been selling a lot of smaller cars. Now that’s stopped, that part of the marketplace is declining. The premium market, which was more badly affected at the start because of lack of scrappage support, I think will continue to increase.
How do you see the Infiniti brand developing in the UK over the next year, taking into account the changes in VAT? I think what is more important for us is our network coverage, introducing the cars to more people and a product line-up expansion. This will have significantly more impact on our business than we expect VAT to have, as the rise is affecting everybody equally.
Where did the idea for the ‘Total Ownership Experience’ come from? Was it an idea driven from the experience gained from rolling out the brand in the US and Europe? yes, this has always been one of the pillars of the Infiniti brand. I think that for Europe, because we’re starting from a blank sheet, our available market is really very, very small and our network roll out will take many years. The amount of people walking through a dealer’s door is relatively small in comparison to other brands, so this gives us and the dealer an opportunity to treat every customer like a king. We have the luxury of more time and I think it can be a real key differentiator. Obviously in the uK, Lexus are always scoring very highly in JD Power surveys, in terms of customer satisfaction. Some of this is coming from product, but a lot is coming from the dealer experience. If you can combine more exciting vehicles with that level of customer service, then you have something unique in the marketplace. Whilst there are many problems at the start of a new car brand, particularly in the current economic environment, there are some benefits. It can be easier to establish a certain level of customer service when you have no history, than it is when you do.
With more Infiniti centres coming on stream in the UK, do you see any changes being made to the ‘Total Ownership Experience’ in the UK? Is the idea of each customer having their own customer account manager quite labour intensive? If it is one of the key pillars of the brand, then you have to keep investing in it. But I think it’s not just about the amount of cars we’re selling that particular year, it’s about how many cars you have in the car parc, so how many cars you’ve sold historically. We come from a small base and we’re not at the point where customers are standing in a queue to have their car booked in for a service. We offer a pick up and delivery service – if the car needs work done or needs a service, we’ll come and collect your
car and bring it back to you. This is unique and we offer this to every customer. It will take time for us to reach that level, where we have so many customers that this becomes a problem.
With the introduction of diesel and petrol hybrid Infiniti models, you’re expecting an increase in UK sales, but do you expect these sales to be from private buyers or the lucrative fleet market? Both. But I think it is more dependent on the type of vehicle. If we’re selling fleet vehicles it will still be to customers who are behaving like retail customers, because our cars are quite distinctive and an individual choice. We’re not going to be selling 500 cars to a bank or a leasing company. I don’t think that’s how our brand is positioned.
How do you view the Lexus brand? What do you think Infiniti could learn from its 20 years in the UK? If I take their work as an example, we’ve chosen to do it a very different way. The Lexus network is very much part of the Toyota brand but we’ve decided to separate from Nissan. I’m responsible for the Infiniti brand, as are the rest of my team. Our cars are very performance orientated, so the relativity between Nissan and Infiniti in terms of the product offering is very diverse, whereas in Lexus and Toyota my perception is that it’s somewhat similar. So therefore our customers, and their expectations, are different and the way we speak with our customers is different. It would have been easier for us to go to every Nissan dealer, which is how Lexus did it with Toyota. We’d have got a quicker return on our money if we’d done that with the Nissan network, but we decided to do it separately, because I think you’re getting the benefit of that over a longer period of time. you separate the brands and position them as something different. I guess many customers know that Infiniti is the premium brand of Nissan but not automatically so. Establishing a new brand is a long game in order to build long-term value. [CD]
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[Forecourt]
Sport’s Day KIA’s MOST WANTED
Unprecedented demand at Kia dealers is down to one car – the Sportage, reports JAMES BATCHELOR
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f you’d told a Kia dealer five years ago that customers would be posting deposits through their letterboxes so they were the first to own one of their new models, you’d have been laughed out of the showroom. But that’s exactly what happened when the marque unveiled the new Sportage. After benefiting from copious column inches in magazines and newspapers, customers were desperate to be the first behind the wheel. ‘When the First Edition was launched we did have customers posting deposits through dealers’ letterboxes,’ revealed Ian Mathews, Kia UK’s head of product planning and marketing development. ‘They had only seen the car on posters, not for real, and they were still desperate for the car.’ With such interest in the new model, the Sportage 2.0-litre CRDi First Edition became a bit of a classic in the now 16-strong model range. But that was not the intention. ‘The primary reasons for the First Edition was that the factory had started building the Hyundai ix35 earlier in the year, and our planned launch date for the Sportage was always going to be quarter four,’ explained Mathews. However, a shortage of the 2.0-litre diesel units shared by the Sportage and the ix35 meant that only a small number of Kias could be built. ’We were given an opportunity to have a limited, finite number of cars – around 1,000 units – two to three months before the planned launch,’ says Mathews. ‘We immediately put our hands up for that because we knew that this was going to be a popular car. ‘We thought we would be better placed and it would give a clearer message if we went with one, single version. We also wanted to have the opportunity of catching the September plate-change.’ Launching a new car with only one model might sound a bit mad – especially a car as important to Kia as the Sportage – but it was a decision that the firm was happy with. ‘If we had a better supply of Sportages, then we would have launched all the 16 derivatives initially. But, under the circumstances, we took the decision – and in hindsight we think that
The Sportage range is now complete. The First Edition, middle, was hugely popular with buyers
‘When the First Edition launched we had customers posting deposits through letterboxes.’ Ian Mathews, Kia it was the correct decision to launch a single version. It meant that the model was easier to communicate to dealers and for dealers to communicate to customers rather than saying we have got 30 of these units and 40 of those units. We got a lot of attention from it.’ FULL FLEET Now there’s a strong supply of engines and the full range has been launched, Kia has high hopes for the car. ‘The Sportage is a significant car for Kia,’ added Mathews. ‘In terms of 2011, the Sportage
will make up around 15 per cent of our mix. 2011 is also the first full year of Sportage being on sale, and we are looking to deliver more than double the volumes we delivered with the last full year of the previous generation Sportage. ‘With its smaller displacement engines and more of a focus on front-wheel-drive – a primary focus of the SUV sector – we are much better placed with the Sportage to capture a greater share of the SUV market.’ But it is not just new technologies and a greater focus on the SUV market which will make the Sportage successful – its design is just as important too, added Mathews. ‘It is a bit of a design icon for us as it is one of the first clean-sheet, Schreyer-designed cars. We believe it showcases the design direction of Kia into the future. ‘The new car is about aspiration and design, rather than the case a few years ago which was
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Our view... Verdict: Kia Sportage 1.6 GDi 1 2WD This two-wheel-drive-only £16,645 ‘1’ specification is the cheapest Sportage money can buy. But that doesn’t mean to say it’s short of equipment. 16-inch alloys, all-round electric windows, electric door mirrors, day-time LED lights, fog and cornering lamps, a rain sensor, Bluetooth with voice recognition, leather steering wheel with controls – the list goes on. In fact, all those toys just make the driving experience even more pleasurable as the 1.6-litre unit is pretty decent to drive. It’s not hair-raising by any means, but its 133bhp and 165Nm of torque delivers adequate grunt. Well-weighted steering, a precise gearbox and quick to react stop-start system makes the entry-level Sportage a fine car. Verdict: Kia Sportage 1.7 CRDi 3 2WD Step up two trim levels and the driving experience only gets better. We normally prefer petrols to diesels, but Kia’s new 1.7-litre oil burner is a treat. It’s down on power by 18bhp to the petrol but up by nearly 100Nm of torque, ensuring a more refined turn of speed. The diesel unit also feels better suited to the car compared to the petrol, as you don’t need to work the ‘box as hard and just feels generally smoother. This being the top of the range model means the ‘3’ boasts full leather interior, both front and rear heated seats, Xenon lights, dualzone climate control, auto-dimming rear view mirror and 18-inch alloys – all for £21,595. Our test car had a seven-inch in-dash sat-nav screen too pushing the price up to £22,570. The 1.7-litre diesel is the pick of the bunch, with the mid-range 2 model offering the best specification for the money.
just about being cheap with lots of spec. We are currently at the tipping point of changing people’s perceptions of Kia, and the Sportage is a good representation of this.’ But how important are the new 1.6-litre petrol and 1.7-litre diesel models? ‘They are extremely important to the Sportage range,’ says Mathews. ‘We are still holding
strong with the 2.0-litre four-wheel-drive because that sector has had a resurgence due to us having three bad winters. ‘But the 1.6-litre and 1.7-litre variants with new technologies – low CO2, direct injection on the petrol – are important in the fleet markets, and to customers who are looking to downsize and reduce their CO2 and taxes. Overall these
two new derivatives are significant because they give us a big, and virtually new, opportunity in a market that we weren’t present in with the old Sportage.’ Judging by its performance so far, since November, the 1.6-litre petrol and 1.7-litre diesel models are taking off from where the First Edition finished. ‘November and December is normally a quiet time of the year, but the Sportage performed extremely well,’ added Mathews. So which will be the best selling in the range? ‘It’s a little early days to be conclusive,’ believes Mathews, ‘but our forecast is the 1.7-litre diesel Sportage 2 model will be the most popular derivative. We think customers will be tempted by the standard panoramic sunroof, and the growing importance of low CO2 emissions in a front-wheel-drive format will make the 1.7-litre diesel the popular choice.’ Perhaps dealers will have to get used to deposits being pushed through letterboxes… [CD]
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feature
Meet most profitable cars Which models do the makers take the most on? James Baggott investigates
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ar companies turn over billions of pounds every year and bank millions in profits – but which cars are the most profitable? It’s a question we’ve been pondering for some time. All car manufacturers can flog a car, but what makes the difference between a bumper profit margin and a tiny one? Well, we asked a host of industry experts, professors and insiders to help us come up with this list. They told us cutting costs and maximising returns in the automotive world is all about sharing expertise and platforms – do that and car manufacturers can dramatically increase their profits. Here are some of the cars that our experts believe are real cash cows for their makers. BMW 3-Series It’s the salesman’s mile-muncher, but its premium price and relatively cheap production costs mark the 3-Series out as a winner for the marque. Our experts said it was mostly down to excellent cost control, the fact cars are often highly specified and usually sold for a premium over similar-sized cars like the Ford Mondeo. McLaren MP4-12C One of the shock cars to emerge from our research was the new McLaren. Although development costs are high, the actual car is relatively inexpensive to make in relation to the high retail price. Our experts said the carbon chassis could be the cheapest to produce ever while many physical components have been replaced by more cost-effective electronics. If they sell the numbers forecast at between £160-170k it could be one of the most profitable cars ever! Citroen C1 / Toyota Aygo / Peugeot 107 The French are experts at sharing platforms between sister firms Peugeot and Citroen, but on the C1/Aygo/107 they drew in the help of a third party – Japanese giants Toyota. The cars were all
3-Series
Focus C1
Range Rover Sport
Mini
911
MP4-12C built in the same factory in the low-cost Czech Republic and each was essentially a rebadged version of the other, with slight styling tweaks. The shared development costs make this a profitable car, despite the low retail price.
VW models. Many are sold for a premium but cost no more to make, adding a healthy balance to VW’s bottom line every year.
Range Rover Sport The Range Rover Sport benefits from all factors that make a model profitable: It’s based on an existing chassis (Discovery) which keeps build costs low. It’s sold for a premium with lots of added extras. And it’s been kept on sale for a long period of time without a major redesign. All these add up to a holy grail in terms of profitability.
New Mini Targeting premium buyers with a small car is a profits winner. You only have to look at how Fiat with the 500 and Citroen with the DS3 are trying to get in on the act to see that. Many Minis are highly specified – we’ve heard of some costing £40k – and it’s made in the UK so transportation costs are low. However, our experts said it’s a pricey design to manufacture so, although profitable, BMW would still prefer it to be better.
VW Golf Described by our experts as ‘the daddy’ of platform sharing, VW isn’t one of the most profitable makers without good reason! The Golf is responsible for two million units a year and currently provides underpinnings for a huge array of Seat, Audi, Skoda and other
Ford Focus Another platform that appears underneath the skin of a huge array of cars on our roads is the Ford Focus. Providing underpinnings for Volvo and Mazda models, the platform is now also being used for some American cars, helping the Blue Oval spread
the R&D costs even further. Cars like the Kuga, C-MAX and Grand C-MAX – all also based on the Focus – will be the real money-spinners for the marque. Porsche 911 (996) / Boxster The platform sharing achieved by Porsche with the 996 model of the 911 effectively saved the maker in the mid-90s, say our experts. The chassis spawned the Boxster which was a huge success for the manufacturer, adding healthy wads to the makers bank balance. Its premium pricing and significant volumes also helped. Aston Martin Cygnet Ok, we know this hasn’t arrived yet, but the baby Aston has the potential to be a real profit centre for the maker. Essentially rebadging a Toyota iQ and charging £30kplus for it – before extras – could spell happy times for the marque. However, despite its potential, our experts warned this would only be possible if buyers like it… [CD]
Thanks to… John McGregor, Professor Emeritus Garel Rhys CBE, Andy Coulthurst from dealer group JCT600 and Nick Hull, senior lecturer at Coventry School of Art & Design
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Delivering promises CarDealerIss35.indd 37
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[Feature]
Lucy Bonham Carter ‘One dealer contacted me too late and ended up paying thousands out to a customer that he didn’t need to.’ Knowing where you stand legally when a customer complains is essential. James Batchelor chats to our Car Dealer Club lawyer about how she can help
B
eing a car dealer is fraught with difficulties. Not only do you have the trouble of finding the right stock, but you have to buy those cars at the right prices in order to sell them at a profit. Then there’s the risk of picking up a lemon, the taxman’s countless letters and the worldwide web to worry about. But there’s one problem we all have to contend with – and it’s the biggest – the one which gives you the most sleepless nights and can make your life hell: Customers. As much as we love them, they can be a real pain, especially when they think all of us are out to ‘get them’… The smallest niggle, the quietest squeak, the stone chip ‘that wasn’t there when I bought it’, can all come back to haunt you in the form of the customer demanding a new car or for you to pay for the repairs. As a caring dealer you want to do the best and keep them happy, but it’s not always easy – especially if it could end up costing you a fortune! What’s more, it doesn’t help that there’s a host of consumer legislation that’s weighted in their favour either. The Consumer Protection from unfair Trading Regulations 2008 (CPR) and the Sale of Goods Act 1979 (as amended) have done their best to make dealers’ lives a lot harder, and has tipped the balance very much in the buyer’s favour. Amendments to the Sale of Goods Act in particular mean that if the vehicle fails in the first six months after purchase, it is assumed that the failure was there at the time of sale. Clearly this isn’t so bad for new car dealers, but for those of you selling used vehicles it can cost you dearly. Remember that cheap hair dryer you bought the missus at Christmas? The Sale of Goods Act says if it goes wrong you are entitled to a like-for-like new replacement. The same legislation is applied to second-hand vehicles, so, in some cases, dealers are occasionally under the impression they must stump up more than the price for which they sold the car! But there is a way of covering your back – by joining Car Dealer Club! Launched last month, membership comes
as part of the £24.99 a year subscription to Car Dealer Magazine and you’ll get access to advice from top industry lawyer Lucy Bonham Carter worth £199. She specialises in helping dealers like you fight cases against consumers – and has a habit of winning! Along with helping Car Dealer Club members, Bonham Carter provides legal advice for The Daily Telegraph’s Honest John. She heads a legal team for an insurance company, and her department at AutoLaw encompasses lawyers, engineers, loss adjusters and insurance people. All this means Bonham Carter is well placed to access information relevant to a case within a few minutes. ‘I first started dealing with motor industry cases as a junior on the Mercedes “rust” group action and went on from there. The vast majority of my work now involves consumer cases involving the motor trade and my team probably handles more work in this area than any other office in the country,’ Bonham Carter says. ‘We are very hands-on. We have three preferred counsel on retainers who we use if we need to go to court.’ That’s all great news for Car Dealer Club members who get access to Bonham Carter’s advice when they need it on a confidential 24-hour help line. STITCHED UP It’s this advice which can help you avoid problems like that experienced by one dealer based in the Midlands. He contacted Bonham Carter too late after already paying a large and, crucially, unnecessary amount of money. The dealer sold a one-owner, 2001 Audi TT quattro 225 with only 46,000 miles on the clock to a London buyer. It was immaculate in every way with a full service history and was also sold £1,250 below retail value. The buyer was told it needed two new tyres, which were low but not illegal, and seemingly left for London happy with his purchase. At some point he took it into his local garage to have it checked over. The list of diagnosed ‘faults’ ran to several pages, with some ‘immediate and urgent’. >
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CarDealer.Club
Lucy’s top tips to keep Trading Standards off your back
1
Don’t get the description or features wrong. Check and recheck any advertising and any descriptions you give for a vehicle on the factsheet or online.
2
Don’t gild any descriptions – however tempting. If a vehicle is one owner but that one owner was Hertz you need to say so.
3
Don’t Bait and Switch – advertising a cheap vehicle you don’t have to sell up to a vehicle you do is a real no-no.
4
Don’t claim to be a private seller if you are not. If you are not selling it for your granny, don’t say you are. If you aim to make a profit from the cars you sell then you are a trader.
5
Don’t put a car into a sales area until it has been cleared and thoroughly checked out. Pre-sale checks are an essential, not an option. And a mileage disclaimer will not clear your legal obligations if there are obvious discrepancies.
6
A new MOT is always a good idea. Don’t try and rely on one six months old. A new MOT doesn’t cost much, increases customer confidence in the vehicle and strongly suggests it was roadworthy at the time it was tested.
7
A warranty won’t get you out of your Sale of Goods Act responsibilities. The warranty sits on top of your Sales of Goods Act responsibilities so while you can use a warranty to offset expensive failures you still remain responsible if the warranty does not count.
8
Price the occasional failure into your margins. No matter how good you are there will be the occasional failure – so make sure that the cost of this is offset into your successful sale margins.
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[Feature]
CarDealer.Club
Some of the best cases Bonham Carter has helped in
Common misconceptions Dealer required to fix any fault
[FALSE] which occurs in first six months The bill to rectify these problems came to £1,400 with a further £1,700 needed to be spent. And the bad news continued for the dealer as the garage then diagnosed a possible failing turbo which, naturally, meant another very large bill. Tellingly, nobody fitted the required new tyres. It was at this point that Trading Standards and the Citizens Advice Bureau got involved who pointed out that the vehicle was not roadworthy at the time it was sold – all because it needed those two new tyres. The vehicle was deemed not of ‘satisfactory quality’ and a refund was said to be required. The customer was also told that he could demand ‘betterment’ – so in addition to a refund there should be an additional payment for the improvements he had made. Presumably exhausted and frightened by Trading Standards and Citizens Advice, the dealer refunded the money and in addition paid 60 per cent of the cost of the repairs. Still not satisfied, the customer returned demanding further compensation for the 30 per cent cancellation fee on his insurance premium. At this point, the dealer contacted Bonham Carter for advice – just as he would have been able to do for fREE as part of being a Car Dealer Club member. So did he really have to pay that additional fee? ‘The answer is of course not,’ rebuffed Bonham Carter. ‘It would have been sensible to replace the tyres before the dealer sold the car, but most of the other work was of dubious necessity and it was questionable whether some of it had been done at all. In fact there are some suspicions that the customer and the repairing garage had some connections beyond those disclosed.’ A telling case, you would agree? If the dealer had contacted Bonham Carter and her team earlier, he could have saved thousands of pounds... HELP One dealer who did contact Bonham Carter in time was selling a BMW X3. The customer returned the car complaining it had failed. Both the dealer and BMW were concerned that because the vehicle was still under warranty, they would be liable for a large financial contribution to repair it.
will win if vehicle fails [FALSE] Consumer within six years of sale shields dealer from [FALSE] Warranty implications of Sale of Goods Act can avoid liability by [FALSE] Dealers describing a sale as a trade sale Enter Bonham Cater who discovered that no service history of the car could be found. The customer believed that a service was only due when ‘a light came on’. Due to the fact no maintenance had been undertaken, the £4,500 worth of repairs was wholly payable by the customer, and not the dealer. Even a contribution of repair on behalf of the dealer was refused. It’s cases like this, where the dealer has contacted Bonham Carter and her team early, that show how she can help save you not only thousands of pounds, but valuable time, unnecessary stress and unpleasantness with the customer. ‘We settle the vast majority of cases to everyone’s satisfaction without recourse to court,’ says Bonham Carter. ‘In fact we only have had one case that has gone to court in the last year. We do this because, although we are instructed by one side, we will advise both parties on the legal framework in which the case will be handled.’ you may be wondering what’s in it for Bonham Carter. Supplying you with free legal advice just for being a Car Dealer Club member does sound too good to be true. But it’s not. The free legal advice is available via email or on the phone – and if you need Bonham Carter to take any case further she can represent you and give you 20 per cent off any fees thereafter. If you’re happy with just the basic free advice then that’s fine. There’s no obligation at all. you can’t say fairer than that... >
To join Car Dealer Club, type bit.ly/dealerclub into a web browser and fill in your details. The £25 subscription to Car Dealer Magazine includes club membership
BENTLEY BALLAST Two-year-old Bentley bought by quarry owner returned to dealer because of ‘corrosion’ as an advisory on subsequent MOT and ‘poor handling’. Car was in filthy condition when returned and had 12 bags of lime in the boot, two of which had burst ‘some time ago’. There were several ‘dings’ in panels. He used to drive it every day up a muddy track to his site in the Peak District. He said the lime was in the back for ‘ballast’ to aid traction for his journey. Verdict: Refund/replacement refused.
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SNAKES ALIVE Northern Ireland trader bought and turned CM over ex-hire car very quickly. On driving home MY a small (seemingly tame) snake fell from behind front dash on to driver’s feet. No CY accident but driver traumatised. Verdict: On advice, full refund given along with very large CMY bunch of flowers and vehicle fully searched K for further snakes before resale. VOSA’S DIM VIEW Trader sold vehicle and was contacted by VOSA prior to trial in respect of illegal condition relating to tints on windows on Corsa. Car had been sold without window tints. When inspected windscreen had been fitted after sale with a stick-on tint which permitted only 20 per cent light transmission and large sound system. Arresting police officer reported them for resisting arrest but court ruled they had probably neither seen nor heard the police vehicle which was attempting to stop them. Verdict: Customer convicted of Construction and Use offences. Trader exonerated. HUSH, PUPPIES Single mother insisted she wanted a ‘good family car’ and was sold a Mondeo estate. Sale was subject to a private agreement between dealer and seller as regards payments which were not made regularly. Consequently the trader attended their address in the early morning to find the purchaser and her boyfriend asleep in the caravan, three children asleep in the car and a dog and six puppies in the boot. Verdict: Car was not repossessed and a puppy for the dealer’s children was part of the resolution. MY BIG MOUTH Trader sold Fiesta diesel describing it as ‘good for 100,000 miles’ to purchaser’s father, who it subsequently emerges was a Trading Standards officer... Verdict: What do you think?
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advert1.pdf
07/01/2011
16:56:37
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[Feature]
CarDealer.Club
AskLucy...
Lucy Bonham Carter is a leading commercial lawyer specialising in automotive cases. Every month she answers Car Dealer Club members’ queries. Here are just some of the recent cases where she’s helped out dealers. Get advice like this by becoming a club member for a bargain £24.99 a year. Can I advertise a vehicle I don’t have to create an ‘interested buyers’ list
I have access to ex-hire cars in some considerable numbers which are particularly of interest to private hire drivers, one or two of which are base specification and most of which are better than that. I was thinking of advertising and selling one of the base spec vehicles at cost price and then repeating the offer, trying to sell the others up to the better vehicles. Would this be okay even if I no longer had the base spec vehicle?
DD, Sleaford
LBC says: This is called ‘bait and switch’ and falls under banned practice six of the Consumer Protection Regulations. There is nothing to prohibit you ‘selling up’ if you have the lower specification vehicle available at the price you claim. But you cannot advertise a vehicle which you don’t have at a lower price with a view to selling a vehicle you do have at a higher price. Well at least you cannot and comply with the law.
Regulations (CPR) which covers ‘misleading omissions’. Under this regulation it is a breach of the CPRs to mislead consumers by failing to give them the information they need in order to make an informed decision before the sale. This might, for example, be by omitting or hiding important information you are aware of or providing important information in an unclear, unintelligible, ambiguous, or untimely manner, where this is likely to cause the average consumer to take a different decision. Although these cases can usually be dealt with by agreement, if a customer is adamant that they would not have bought the car were they in possession of the full information the best option is usually to refund or replace and to train your staff not to make the same mistake in future.
TB, Salisbury
LBC says: Ex hires form the majority of the newer cars sold in the UK and while there is nothing wrong with them at all if you tried to conceal that the car was a hire car or failed to declare it then the chances are you fall foul of Regulation Six of the Consumer Protection
NP, Monmouth
LBC says: Most cars of this age have had some form of minor damage. If the accident damage was only minor and was rectified, for example a paint job was undertaken to remove a scratch or filler applied to fill a dent then it is unlikely to be important information that the consumer needs to make an informed choice as to whether to buy the car. You need a polite but firm letter from us pointing this out and they will almost certainly withdraw any claim. If they fail to do so we can point out the legal issues and their very remote prospects for success should they choose to take their claim further.
Sold as seen and trade sales
I sell mostly older cars for people to take a chance on and run until they fail under the principles of Bangernomics. Is there any form of words I can add to my terms and conditions which will enable me to restrict the rights of buyers to a refund or a replacement? OP, Truro
Necessity to declare a vehicle as a former hire car
We have a vehicle which was owned by Volkswagen but was supplied to Hertz and Hertz is on the V5. A buyer came in the showroom and one of the sales staff explained who owned the car but never referred to the rental connection. The buyer now has received the logbook and has gone bonkers saying he would never buy an ex-hire and wants a refund. Obviously there is now another name on the logbook. The car was owned by Volkswagen (whatever the V5 says). Do we have to comply and refund as the care is obviously worth less with two owners than it was with only the manufacturer on the logbook?
What are our legal rights?
Requirement to disclose minor vehicle damage to buyer
We took a vehicle in as part exchange at three years old having sold it originally. The mileage is genuine and it has a full service history but it is relatively high (reflected in the price we sold it for) and there was some wear and tear so we resprayed the bonnet and filled and sprayed two shallow egg-sized dings on the driver’s door. The buyer has since had another low impact collision in a supermarket car park and the people doing the work have told him about the previous work. There is no question being raised over the quality of the work but he says because we failed to disclose that it had been involved in ‘a previous collision’ as he insists on calling it, we should give him £500 back on the price of the car.
LBC says: ‘Sold as Seen’ or ‘Trade Sale Only’, ‘No Refund’ and ‘Spares or Repair’ will not restrict your customer’s rights if they are a retail buyer – even if the statement ‘this does not affect your statutory rights’ is included. However the Sale of Goods Act is not blind to the age, purchase price and condition of the vehicle and the more information you give to the buyer the better. Make sure you price a decent margin into your sales to cover the occasional failure but on a car sold for under £1,000 the court – if it got to court – are not going to expect too much by way of redress as it would be ‘reasonable’ for any buyer to factor in the possibility of a failure of a vehicle of this age which makes the vehicle uneconomic to repair. Want to get expert advice like this for FREE? Then all you need to do is join the Car Dealer Club. A year’s membership is just £24.99 and you’ll get access to free legal advice from Bonham Carter. Log on to bit.ly/dealerclub for more details.
Lucy Bonham Carter is a leading commercial lawyer specialising in automotive. She heads the legal team at AutoLaw, a multi-disciplinary insurance and legal practice which specialises in providing legal assistance on motor trade-related legal issues and she provides advice to Car Dealer Club members 42 | CarDealerMag.co.uk CarDealerIss35.indd 42
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CarDealer.Club Join Car Dealer Club and get FREE legal advice worth £199! Membership includes subscription to Car Dealer Magazine Enjoy exclusive access to discounts from key suppliers Membership is just £24.99 per year What is it? Car Dealer Club is Car Dealer Magazine’s unique offering that gives motor traders of all sizes access to some brilliant benefits. The biggest one of all is access to the country’s top motor trade lawyers, 24 hours a day, for free legal advice connected with your business. The service usually costs £199 per year, but we’ve managed to arrange an exclusive offer. When you take out a subscription to Car Dealer Magazine for the unbelievable price of £24.99 you’ll be covered! There are no strings attached. What else will I get? We’ve also managed to negotiate some tantalising discounts from motor trade suppliers so you can enjoy being part of a select band of car dealers. When you join you’ll be given a club membership number and details of how to get access to these unique offers. I already get Car Dealer Magazine, am I a member? No. This special offer only applies to new subscribers so if you haven’t renewed your subscription then you need to do so online to gain access to this very special offer, or fill in the form below and send us a cheque.
CAR DEALER CLUB SUBSCRIPTION FORM Your Name: ......................................................................................................................................................................... Company Name: ......................................................................................................................................................................... Postition: ......................................................................................................................................................................... Telephone Number:
Circulation audit question: Please tell us the LAST digit of your year of birth (born 1969 would be 9): ........... Please make cheques payable to BLACKBALL MEDIA LTD and send them to:
Car Dealer Club Offer, PO BOX 227, Gosport, PO12 9DE
......................................................................................................................................................................... Company Address: ......................................................................................................................................................................... ......................................................................................................................................................................... ......................................................................................................................................................................... ......................................................................................................................................................................... .........................................................................................................................................................................
CarDealerIss35.indd 43
Or you can pay for your subscription online – simply fill in your details at CarDealerMagazine.co.uk/subscribe.htm – and you can pay by credit or debit card. Once we have received payment you’ll be sent a Car Dealer Club membership pack with the latest issue of the magazine, plus details of how to take advantage of all the offers.
8/1/11 13:58:49
S R E L A E D G IN R E W O P M E Our survey that rates the car makers you represent and the suppliers you do business with is BACK. James Baggott reports on how you can get involved
L
ast year your opinions on the manufacturers you represent and the suppliers you do business with really shook up the motor industry. We asked you to rate the firms you have contact with on a daily basis with one sole aim – to highlight the very best in the motor trade. And you responded in your droves. Response to our survey was incredible and with your opinions logged we were able to rate the car manufacturers from best to represent to the worst! We also asked you for your opinions on motor trade suppliers you do business with – we wanted to know who was the very best in key categories from finance to online advertising. With your opinions counted we named the very best companies for dealers to do business with. These Car Dealer Power Awards were the only seal of approval worth celebrating because they were the only gongs voted for by the people that matter most – you! Now, this year we’re doing it all over again. Nissan will be looking to retain its title as the best manufacturer to represent while fiat, Alfa Romeo, Chrysler and Honda will be looking to haul themselves off the bottom. And there will be countless motor trade with Car Dealer Magazine – you have our word! suppliers vying for one of the most important However, if you want to be considered for one awards in the trade – a Car Dealer Power seal of of the brilliant monthly prizes we have up for approval as voted for by you. grabs you’ll need to give us your mobile phone number. This is so we can call the winners and find CONFIDENTIAL out where to send the prize. Now, because we want you to give your honest feedback our survey is 100 per cent confidential. WHy FILL IN THE SURVEy? you can fill in the survey on the following Because it can make a difference, that’s why. pages and post it back to us or simply go to When we launched Car Dealer Power last year not CarDealerPower.com and tick the virtual boxes every car manufacturer took it seriously – some online. Nowhere will we ask your name or your didn’t think we really were going to publish the company’s name. shocking results in full. But we did. And they Anything you say in the survey will NEVER be passed on to anyone else and will remain securely didn’t like it. Some car makers didn’t like the
fact that you were allowed an opinion and that we voiced it. Now’s your chance to tell us if they listened to what you had to say – did they do anything about your gripes? And are the best still great? We won’t know unless you tell us. These awards are so powerful because they’re the only ones that put you in the driving seat – and because it’s confidential you can give your honest feedback without fear of reprisals. THE PRIZES We know you’re busy and we want to show our appreciation for you taking the time out of your hectic schedule to give us your opinion. That’s why
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AWARDS NIGHT
T ‘Nissan will be looking to retain its Car Dealer Power title as the best manufacturer to represent and suppliers will be vying for our coveted gongs chosen by you.’
his year we’ll be hosting a special Car Dealer Power awards night to celebrate the ‘towering’ success of our high achievers. A special dinner and awards ceremony will be held 170 metres above the ground on the viewing deck of the Spinnaker Tower in Portsmouth! With views that stretch 26 miles in each direction, the contenders for gongs in each of the Car Dealer Power categories will enjoy a sumptuous dinner and find out who’s won what. No-one will be going home empty handed from the special night either – as only award winners and those with highly commended places will be offered tickets. The awards will be held on July 13 and details of how tickets can be purchased will be released nearer the time. But for now, if you think you’ve got a good chance of winning, make sure you put July 13 in your diary!
We’ll be holding the Car Dealer Power awards here
we’ve got a host of fantastic prizes to hand out. Every month we’ll be picking random respondents who have filled out the Car Dealer Power survey to hand prizes to. Remember, if you want to be in with a chance of winning, we’ll need your mobile number on the form overleaf or when you fill in the survey at CarDealerPower. com. This month we’ve got THREE Garmin 1310 sat nav
systems to give away worth £130 each. The slimline navigation device is packed with technology to help make your journey smoother and safer. The 1310 boasts lane assist information to help ensure you always make the right turn, speed camera alerts and clever ecoRoute software that encourages you to make more eco-friendly trips. It comes with mapping for the UK and Republic of Ireland and even has Bluetooth so you can make handsfree calls on the go.
Where Am I? software can detail what services are around you while the smart City Explorer mode lets you use the unit as a guide while walking with information on restaurants and public transport. It’s got a 4.3-inch display, speaks out the road names you need to take and is compatible with the optional traffic information system. For more information on the 1310 log on to garmin.com. Everyone who fills in a Car Dealer Power survey before January 27 will be in with a chance of winning one of these amazing systems. >
Win one of three Garmin sat navs by filling in our survey at CarDealerPower.com
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EMPOWERING DEALERS
The easiest way to fill in the survey is online at CarDealerPower.com
CAR DEALER Power is 100 PER CENT CONfIDENTIAL. Anything you say in this survey will NEVER be passed on to anyone else and will remain securely with Car Dealer Magazine. However, if you want to be entered into the prize draw we need your mobile phone number
– this is so we can call you and find out where to send the prize! If you represent more than one manufacturer you can fill in this survey again online by visiting CarDealerPower.com, photocopy these pages or email james@blackballmedia.co.uk for a
copy. All requests will be treated confidentially. Any comments you wish to make will be most welcome. These may be used in the magazine but will be attributed anonymously. Thanks for your help!
your Mobile Number (needed to be entered into prize draw)…………………........
PART ONE
Excellent faultless Comments:
1. Which car manufacturer do you represent? (If it’s more than one, please fill in the survey again)
Abarth Alfa Romeo Aston Martin Audi Bentley BMW Cadillac Chevrolet Chrysler Citroen Corvette Daihatsu Dodge fiat ford Honda Hyundai Infiniti Jaguar Jeep Kia Land Rover Lexus Lotus Mazda Mercedes-Benz MG Mini Mitsubishi Nissan Perodua Peugeot Porsche Proton Renault Saab Seat Skoda Smart Ssangyong Subaru Suzuki Toyota Vauxhall Volkswagen Volvo Other (please name)
2. How would you rate your manufacturer with regards to its finance offers? Poor Average Good
3. How do you rate the warranty your manufacturer offers? Does it cover everything it needs to and is it easy to administer? Poor Average Good Excellent faultless Comments:
4. How would you rate your car manufacturer on its aftersales support? Poor Average Good Excellent faultless Comments:
5. How do you rate your car manufacturer’s marketing overall? Consider the support it offers you for advertising, the offers it comes up with and the marketing schemes it has developed. Poor Average Good Excellent faultless Comments:
6. How do you rate your car manufacturer’s brand awareness? Poor Average Good Excellent faultless Comments:
7. How accessible is your manufacturer? Can you get hold of the right people at head office? Do they listen to what you have to say? Poor Average Good Excellent faultless Comments:
8. How good is your manufacturer with regards to the internet? Consider the support it gives your online offering, how leads are fed down to you and the quality of its website. Poor Average Good Excellent faultless Comments:
9. How do you rate the supply of new cars from your manufacturer? Poor Average Good Excellent faultless Comments:
10. How well does it manage used cars? Consider how it manages stock and its used car scheme. Poor Average Good Excellent faultless Comments:
11. How do you rate your manufacturer’s forward planning? Poor Average Good Excellent faultless Comments:
12. How do you rate the requirements your manufacturer imposes on you? Poor Average Good Excellent faultless Comments:
13. What do you think of the bonus structure put in place by your car manufacturer? Poor Average Good Excellent faultless Comments:
14. How do you rate the return on investment from your manufacturer? Poor Average Good Excellent faultless Comments:
15. Which car – from any manufacturer – do you think deserves the title of the Car Dealer Power Car of the year?
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Please send completed surveys to: Car Dealer Power, PO BOX 227, Gosport, PO12 9DE Part Two – The SUPPLIERS This section is about finding the best suppliers to do business with. The winners will not be decided solely by the most popular, but by how good they are at providing you with a service. We’ll be naming a winner for each category and two highly commended places which will be announced at the Car Dealer Power Awards ceremony on July 13. For each category, first tell us who you use, then how you rate their service and finally add any comments you have.
1. Warranties 1. WMS 2. Warranty Wise 3. Auto Protect 4. Car Care Plan 5. RAC Warranty 6. AA Warranty 7. Mapfre Abraxas 8. Other (please name): How do you rate the service? Poor Average Good Excellent Faultless Comments: 2. Digital Specialists (design, software) 1. Autotorq 2. GForces 3. Spidersnet 4. Codeweavers 5. Viper Image Media 6. UK Websites 7. Webzation 8. DSG Financial Services 9. Other (please name): How do you rate the service? Poor Average Good Excellent Faultless Comments: 3. Online Advertising 1. Auto Trader 2. eBay Motors 3. Motoring.co.uk 4. Motors.co.uk 5. Netcars.co.uk 6. Carpages.co.uk 7. Pistonheads 8. Makeandmodel.co.uk 9. Buyyourcar.co.uk 10. Reallygooddomains.com (stable of sites) 11. Compucars.co.uk 12. Carmony 13. Other (please name): How do you rate the service? Poor Average Good Excellent Faultless Comments: 4. Finance 1. Black Horse 2. Carlyle 3. Close MF 4. Santander 5. First Response 6. Barclays 7. Alphera 8. Other (please name): How do you rate the service? Poor
Average Good Excellent Faultless Comments: 5. Lubricants 1. Castrol 2. Mobil 1 3. Total 4. Chevron Havoline 5. Comma 6. Other (please name): How do you rate the service? Poor Average Good Excellent Faultless Comments: 6. Recruitment 1. JGA 2. Steele & Dixon 3. Perfect Placement 4. REP 5. Motor Industry Recruitment 6. Top Car Recruitment 7. Square Peg Recruitment 8. Connect HR 9. Other (please name): How do you rate the service? Poor Average Good Excellent Faultless Comments: 7. Provenance checks 1. HPI 2. Experian 3. AA Car Data Check 4. Mycarcheck.com 5. CarTextCheck.co.uk 6. Other (please name): How do you rate the service? Poor Average Good Excellent Faultless Comments: 8. Used Car valuations 1. Glass’s Guide 2. CAP 3. Experian 4. Auto Trader 5. What Car? 6. WeBuyAnyCar.com 7. HPI 8. Other (please name): How do you rate the service? Poor Average Good Excellent Faultless Comments: 9. Remarketing 1. BCA 2. Manheim Remarketing 3. SMA 4. Auction4cars.com 5. Wilsons 6. FLAG
7. Autotrade-mail.com 8. Trader-Net.co.uk 9. G3 Remarketing 10. Other (please name): How do you rate the service? Poor Average Good Excellent Faultless Comments: 10. Lead generation 1. Autotrade-mail.com 2. MFL-direct.co.uk 3. Hook Logic 4. FindsYou.com 5. Motorati 6. Motoring.co.uk 7. AutoTrader.co.uk 8. BuyYourCar.co.uk 9. Manheim Lead Management 10. Other (please name): How do you rate the service? Poor Average Good Excellent Faultless Comments: 11. Dealer management and technology 1. Dragon2000 2. WinWin World 3. Gemini Systems 4. Kalamazoo Reynolds 5. Autoview 6. Pinewood 7. Dealer Management Services 8. Manheim Retail Marketing 9. Other (please name): How do you rate the service? Poor Average Good Excellent Faultless Comments: 12. Paint protection 1. Supagard 2. Autoglym Lifeshine 3. Diamondbrite 4. Ventureshield 5. 3M Scotchgard 6. Paintshield 7. GardX 8. Smartgard 9. Other (please name): How do you rate the service? Poor Average Good Excellent Faultless Comments: 13. Special Achievement Name the one motor trade supplier you feel has achieved something special this year. Reasons why would be appreciated:
14. Innovation of the Year What product or service has blown you away this year? Reasons why would be appreciated:
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Reasons to be Cheerful... :)
I
t’s all too easy to look on the dark side of life. With your showrooms empty, VAT rising and car manufacturer bosses warning of a tough year ahead, it’s hard to stay upbeat.
We know the last few issues may have been a little bit depressing. That’s why, with a new year upon us, we decided to lighten the mood and throw the doors open only to those who could give you a reason to be cheerful. What’s quite clear is that 2011 is going to be tough – but with a host of new model launches, new technologies to help you promote your offerings, and suppliers fighting to give you the best possible deal, things start to look a little bit rosier. It’s all about being positive. Even when your dealership is punting out cars left, right and centre, and you’re enjoying holidays in Barbados, things can still look depressing. If you’re in the wrong frame of mind you’ll be worrying about when the good times will come to an end... By seeing you pint glass as half full and focussing on the brighter side of life, the weight will be lifted. It’s easy to moan and groan – instead try putting that effort into cheering your staff up and working out how you’re going to make 2011 a success. To give you some inspiration, we’ve spoken to car makers, suppliers and dealers, like you, about their reasons to be cheerful. We’ve also highlighted two companies’ fantastic offers to help you keep stock moving – one helps you buy stock at the right price, the other helps you get them shifted. Both are waiting to put a smile on your face by showing you what they can do. Happy reading...
Batch James Batchelor Staff writer
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[Reasons to be Cheerful]
Taking
stock Beating the weather and the competition – JAMES BAtchelor looks into the easiest way to restock your showroom
B
eing a dealer is hard at the best of times – we all know that. But buying stock and selling it on to punters during one of Britain’s coldest winters in recent times makes the job even harder. Only the most hardcore dealers can bear to spend their days in cold auction houses, most are now using the many online offerings to buy their cars from the comfort of their own offices. G3 Remarketing is an online trade arena that’s the perfect place for dealers to stock up when the temperatures tumble. It’s an electronic route to market for many fleet and finance companies. The business platform is simple, and so too is buying stock from G3 Remarketing, explains Jason Smith, dealer principal of Evans Halshaw York Citroen and Peugeot, who uses the site. ‘The system is really very good,’ he told us. ‘It’s incredibly simple to use and I enjoy using it. G3 Remarketing is just one of a number of auction firms I use – both online and physical auctions. ‘Most of those auction houses have an online facility, but G3 is better than the other firms because they publish a catalogue which you are able to browse two or three days before the auction. It’s more laid-back; you are able to do your research, and then submit your bid – a bit like eBay. ‘The other difference with G3 Remarketing is their personal service. The team are friendly; I speak to them every week, and if I haven’t got the time to go to the site, they will ring me about stock that would interest me – you just don’t get that with other firms.’ Simplicity was the main aim of the operation, explains G3 Remarketing director Matt Dale. ‘From our perspective, we feel that electronic auctions are a much quicker route for purchasers to buy stock,’ he explains. ‘The ability we have got with G3 is that we have a bespoke platform that has been tailored over the last 18 months to buyers’ needs – it is currently in its third incarnation. ‘But dealers should really use us because of the service we offer and the quality of stock that we bring to market. We have a personal account manager for each buyer that uses our services, and that manager contacts the buyer
about stock, handles any payments, documents and paperwork, and arranges delivery of the vehicles. It is very much a part of the high-quality, personal service we offer. ‘The quality of the stock we have all comes directly from leasing and finance companies, and the majority of the stock is one owner, has history and a V5. From a buying perspective, dealers are buying quality stock which they can buy 24/7 – if need be.’ Sounds incredibly simple doesn’t it? That is down to the firm’s business model. ‘We are agents, not purchasers,’ Dale says frankly. ‘It is not a case of us buying stock from a company, make a mark-up and then sell it. It is a case of whatever the vehicle achieves in the auction, that is put forward to the vendor and they decide whether they want to sell it or not.’ How does the firm make any money from this simple operation? Dale replies: ‘We have a standard fee that covers the majority of stock we sell, which is £105 plus VAT per vehicle. That covers about 95 per cent of the stock we sell and we charge it to the buyer, and we charge a small fee to the vendor as well.’ A wide spectrum of dealers have already used G3 Remarketing and found it to be a winning decision. ‘We have a selection of dealer groups; from the large groups who buy in bulk, right down to the smaller dealerships that we specifically target. ‘So, for example, if there is a car that is a little bit different – or a car that a large main agent wouldn’t appreciate and therefore wouldn’t achieve its real value – we’ll select specific vehicles and market those to specific smaller dealership groups or sites. Our platform allows dealers to buy one car or 100 cars, so we encourage as many dealers to use our platform as possible,’ explains Dale. And those dealers are buying cars that are checked to ensure they are of high-quality. ‘All vehicles are sold as seen,’ says Dale. ‘However, if we know there is a mechanical issue with the vehicle, we do our utmost to declare that to the buyer. We also do electronic appraisals of the vehicles, and if the vehicle is delivered and is not as described, we then take that vehicle back – no
questions asked.’ G3 Remarketing also has some exciting developments lined up for 2011. The firm has recruited a number of new staff who will be handling dealer relationships – a development that came about by listening to retailers. ‘That is the good, old-fashioned going out and speaking to dealers, seeing what their requirements are and allocating stock directly to them,’ says Dale. ‘We also have a new off-site, online auction programme that we are launching with a major vendor which will bring a wealth of new stock in. This will be vehicles all under 30,000 miles, and up to 18-months old. It is aimed at dealers;
‘Our platform allows dealers to buy one car or 100 cars, so we encourage as many dealers to use it as possible.’
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enforcing the high-quality product we are offering them. We are also offering an online auction located at our premises which will go up from one auction a week, to two a week in February.’ G3 Remarketing opened its doors in October 2009 just as the market was becoming quiet. ‘We opened at perhaps the worst time you could,’ reflects Dale. ‘But we have attracted a wealth of new buyers, because they have seen that in contrast to our services, going to a physical auction wastes time. ‘With the way the economy is at the moment, dealerships just can’t afford for staff to be out
of the office. Our system allows them to buy the stock, it is with them within 48 hours, and they can do that within 10 or 15 minutes either by going on to the internet or by bidding by text. It is a simple process which saves dealers time,’ he says. But why should dealers use G3 Remarketing in 2011? Dale has the answer: ‘Because they will receive a personal service – a personal account
manager will look after them – the selection of stock we bring to market is growing, and the vehicles can be delivered within 48 hours. ‘Our system speeds up the time between buying the car, and the car sitting on your forecourt ready for retail.’ >
For more information call 0845 190 6363 or visit g3remarketing.co.uk
How it works Dealers visit g3remarketing.co.uk and will fill in a simple form to register their details, which arrives at the firm’s admin department. If you are a non-franchised dealer then your references are checked, usually within 24 hours, and then you’re allocated an account, username and password, and that then gives you full access to the website. If you are a franchised dealer you will be set up within an hour. To buy cars you find the one that interests you, place a bid on it and if you are successful that vehicle is usually delivered within 48 hours. G3 founders Matt Dale and Amanda Holtby
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[Reasons to be Cheerful] Getting the
net working Are your adverts getting the results you want? JAMES BAGGOTT finds out how Motors.co.uk can help turn more of your precious leads in to sales
W
orking out where to advertise your stock on the worldwide web can be fraught with difficulties. It seems a number of new online advertising platforms are launched on a regular basis with a fanfare about how many potential buyers will see your cars. But how do you really know the cash you’re spending on putting your cars in front of buyers is actually working? Well, one way is to track the leads you get from adverts and find out which ones really worked. But, in all honesty, do you really have time to do that? We suspect not. That’s why so many people stick with advertising their stock on the tried and tested channels. And we all know who we’re talking about… But if you’re fed up with paying the same old companies for the same old services, why not try something different in 2011? You never know, they could give you that reason to be cheerful we’re all looking for – more sales! Motors.co.uk was launched four years ago and has certainly had an interesting journey so far. Backed by the Daily Mail General Trust and with partnerships with a number of local newspapers across the UK, Motors.co.uk gives you access to an unprecedented multimedia offering for online and offline advertising. But that’s not all – Motors.co.uk is not just about advertising your stock. With software and service companies Auto Exposure and Complete Automotive Solutions as part of its stable it can offer you a bespoke website, photography solutions, uploading tools and call recording systems. We spoke to the firm’s CEO, Garry Hobson, and newly appointed commercial director, Phill Jones, about what makes Motors.co.uk different. ‘We aim to please,’ states Garry Hobson confidently. ‘In fact, we strive to over deliver for our dealers, providing them with powerful advertising tools and a transparent, honest service. With so much choice for dealers out there, we know how important great customer service is. ‘We have a team of support staff who are at the end of a phone to talk to dealers about any technical issues or queries, and offer full support to get dealers’ cars loaded quickly onto the
site so they can start generating leads as soon as possible. Our search functionality is unique allowing consumers to search from a number of perspectives, including multiple make/model, colour, style all the way down to CO2 emissions! ‘We devote significant resources to deliver the best user experience possible. We also offer free history checks on cars listed on our site so consumers can purchase with more confidence from our dealers. We believe that building consumer confidence and empowering them to find what they want quickly increases the likelihood of leads being generated. ‘We offer dealers access to an audience of more than a million users across Motors.co.uk and our partner sites.’ So which type of dealer would be interested in using Motors.co.uk? ‘We offer great packages for all dealers ranging from top 200 dealer groups down to smaller independent dealers who maybe only have 10 cars,’ explained Jones. ‘We can tailor the most cost effective package to suit a dealers’ needs and inform them of any special offers or products that may help in improving the effectiveness of their advertisements.’ Jones explained that uploading cars to the site is simple. Motors.co.uk has developed its ‘Autoedit’ tool to allow dealers to upload straight to the site and then use this method to export their stock to other advertising portals at no cost. He said: ‘The best bit is this is a totally free and easy to use service which we offer to all our dealers, making it a really cost effective alternative to other services.’ Hobson reiterates that dealers get fantastic exposure for their stock with Motors.co.uk because of the relationship it has with local newspapers around the UK. He said: ‘Your cars get in front of potential buyers from both a local and national audience. The local audience comes from our relationship with the local newspapers and our national audience comes
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A different app-roach MOTORS.co.uk has launched its very own iPad App. The firm has already benefited from the success of its iPhone and Android Apps with 84,000 people downloading the handy software and plans to boost that further with the new iPad offering. The App features the site’s innovative search system that allows buyers to hunt for their ideal make and model from a database of around 150,000 used cars spanning retailers and private sellers across the UK. In addition, on the iPad App, buyers can browse the site’s online car reviews and catch up on the latest motoring news. It can be downloaded for free.
Motors.co.uk’s Auto Exposure service can modify pictures dealer’s take of stock to make them look their best. As seen here, before work, bottom, and top, after
‘We offer dealers access to an audience of more than a million users across Motors.co.uk and our partner sites.’
Cars listed on Motors.co.uk are also, automatically, listed on these sites too: Desperate Seller Parkers.co.uk MailOnline Teletext Cars Carsbymail AutoExposure Below, Motors.co.uk’s Motor Sensei
from our partnerships and our online audience.’ The website has recently undergone a major relaunch with the addition of a new brand icon ‘Motor Sensei’ promoting the site’s many benefits which centre around safe buying for consumers. ‘We know how valuable it is listening to feedback from consumers and dealers and we take pride in using this information to continually improve our offerings,’ said Hobson. ‘Consequently, the major overhaul of Motors. co.uk last year reflected the desire from consumers for a more flexible search tool. We are continuously listening to feedback on our search and adjusting the site to take account of this. For our dealer customers, we are rapidly expanding our product set to provide dealers with powerful tools for improving the effectiveness of their marketing spend. Ultimately we can be matchmaker for consumers and dealers as we understand both parties’ needs.’ So what about those other services Motors. co.uk can offer dealers? Well, these are quite intriguing in themselves, as Hobson explains: ‘Our Auto Exposure team have a wealth of experience in providing dealers with all things digital. This covers photography, including photographers taking pictures of dealer’s stock for them, advanced vehicle imaging (see left) which allows us to digitally enhance photos and make stock stand out online. ‘We also offer a host of website products, including fully managed sites, websites which dealers can update themselves or just a simple static site to enable a dealer his own presence online. ‘Complete Automotive Solutions (CAS) provides intelligent call recording and reporting (Voicesafe) and customer relationship management (CloseIt) software to the motor trade, both of which offer dealers the chance to improve the effectiveness of their business.’ Sounds like it’s a busy time for Motors.co.uk then? ‘Absolutely,’ adds Hobson. ‘We’re a fastgrowing business, in fact, it’s hard to believe we have achieved so much in the four years since Motors.co.uk launched, but it doesn’t end there. We are planning another step change in our market presence to deliver cost-effective lead generation and a great marketing channel for dealers with more exciting products on their way this year, so it’s set to be another exciting year.’ >
For more information visit Motors.co.uk, autoexposureproduction.co.uk or call 0845 265 6000
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[Reasons to be cheerful]
More reasons
to smile
We asked the trade for their reasons to be cheerful – and here’s what they had to say, reports JAMES BATCHELOR Chris Mason
Motor Codes, managing director Trading conditions are tough but remember that the motorist is feeling the pinch just as much as dealers. One natural area of growth for franchised and independent garages is service and repair. People are keeping cars longer and need to maintain them but reputation is vital to pulling in new and repeat business.
Paul Everitt
SMMT, chief executive
age of the vehicle parc, 2011 is the perfect opportunity to increase customer spend at each vehicle visit. This, combined with the correct tools to enforce tight workshop controls, increase workshop efficiencies and a robust and measurable follow-up process will provide dealers the potential to ‘buck the trend’.
Nigel Head
Castrol, OEM and franchised workshop marketing manager
While next year will continue to be challenging for the automotive sector, dealers can look forward to strong support from industry as well as efforts by manufacturers to provide attractive incentives to increase retail demand in 2011. New focus on the development of skills through an emphasis on training and apprenticeship schemes will encourage many to seek careers in the automotive industry.
2011 doesn’t have to be as gloomy as some of the headlines predict. Demand for efficient, professional aftersales operations will arguably be stronger than ever in quarter one, due to damage sustained to vehicles during the recent bad weather. Dealers need to treat every customer contact point as an opportunity – both for upsell on the day, and for retaining valuable business long-term.
Tim Smith
Mark Cameron
2011 looks set to be a tough year for new and used car sales. More than 50 per cent of dealer website hits occur when showroom doors are closed, peaking between the hours of 7pm and 10pm. Therefore, effective out-of-hours processing of sales enquiries could make the crucial difference for many dealerships. Our new ‘Live Chat 24x7’ facility ensures dealers are always open for business.
With the economy stabilising, the private sector starting to create jobs and interest rates forecast to remain low I believe there are reasons to look forward to 2011 with some optimism. Mazda will continue to take a pragmatic and partnership approach with its dealers, facilitating above average returns. We will continue to drive interest in the Mazda brand but also protect the value of our customers’ investment for the future.
GForces, commercial director
Kenyon Neads
Subaru UK, marketing director Subaru UK will not be passing on January’s VAT increase to the majority of our customers. Rather, we are to absorb the 2.5 per cent rise in sales duty ourselves, in most cases. This means that prices for 80 per cent of the Subaru range will remain unchanged for 2011.
Tim Baumfield
Manheim aftersales solutions, managing director With extended fleet terms and the increasing
Mazda UK, sales director
Peter Wyhinny Seat UK, director
At Seat UK we’re well prepared for what we believe will be a tougher market environment than what we ended up seeing in 2010. We have one of the newest product ranges, the latest addition being the all-new Alhambra. In fact we have the right range for our times, with plenty of low emission models (especially our Ecomotive range), all benefiting from a sporty character and stacked with high levels of standard equipment.
‘The year may be one of uncertainty for new car sales but dealers have to remember that every new vehicle sale lost is an aftersales opportunity to be won.’
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Jon Burgess
Mondial, head of business development The year may be one of uncertainty for new car sales but dealers have to remember that every new vehicle sale lost is an aftersales opportunity to be won, so take advantage of the rising interest in Service Plans for both new and used vehicle stock, use every opportunity to promote extended warranties, and work with established, online-based product providers.
Michael Cole Kia Motors (UK), managing director
Going into 2011 it does appear that the concerns about a possible double-dip
recession are fading and while recovery will clearly be slow, we are on the right road to see the economy grow. Compared to a year ago we have a larger – up by more than 10 per cent – dealer network giving us better geographical coverage and both our new and existing dealers are in a strong position to make the most of that recovery.
Steve Godrich
XPart, all-makes manager Selling a wider range of all-makes parts is a good opportunity for dealers to increase their profit per trade customer in 2011. The XPart AllMakes programme allows dealers to create an extra revenue stream.
Tony Whitehorn
Hyundai Motor UK, managing director A reason to be cheerful is having the right, new products, which we have. The budget could also be good because if the austerity measures are working it will give the market a feel-good factor.
Peter Vardy
Chief executive, Peter Vardy I think there are plenty of reasons to be cheerful. Manufacturers have been working hard to manage production levels sensibly and improve offers available on new cars with things like absorbing VAT rises and lifetime warranties that is creating demand in the market place. [CD]
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WMS_Egg_AD_0910.pdf
29/9/10
12:01:38
?
?
What comes first in your business? The story of unrequited love. Profit can be a by-product of a robust sales process. Get the process wrong and it could all end in tears. C
M
Meet and greet can be just like romance - awkward and rushed, avoided completely to save embarrassment or satisfying for all parties and the perfect start to an enjoyable process. There’s no need to be selfish, all you need to do is ask your customer if it was good for them!
Y
CM
MY
CY
CMY
K
Many years ago I carried out a mystery shop at a car supermarket and it turned out to be exactly that. It was a mystery why anyone would shop for a car at that dealership. As soon as I arrived a salesman who never introduced himself shouted at me from across the car pitch – “Are you going to buy a car today?”, “Have you got the money to buy a car today?”, “Are you ready to buy a car today?” No, but I was considering committing a homicide. He had destroyed any pleasure that could be found in buying a new car in less than 30 seconds. Yet this was important to me and I wanted to be wooed and enjoy the thrill of the chase, after all I wanted to be treated properly. Any thought that this could ever be a long lasting relationship just evaporated so I felt completely deflated. I decided to see the whole thing through, which lasted approximately 2 hours and included a low down on the disastrous love life of the salesman (now there’s a surprise), a test drive designed to frighten me into submission and the immortal words “yea mate this motor is well nice, know what I mean?” I left without buying and he never asked me my name once. He’s never written or phoned and I’m devastated. A well structured and practised sales process will help every business to build a strong relationship with the customer who is about to make one of their biggest purchases and needs your help and guidance every step of the way. It’s no surprise that the most successful salesmen stick closely to a logical process and this includes creating customers for life through after sales opportunities. We’re not talking flowers and chocolates here, just building a relationship for the future. The sales process doesn’t have to end when the customer drives away from the forecourt. It’s never too late to re-kindle the spark of a fulfilling relationship. WMS have a range of warranty and protection products designed to fit into your sales process from meet and greet right up to delivery and provide all of your customers with reasons to keep coming back to your dealership. It’s simple we make you money!
If you would like to discuss the products and services available from WMS Group, please contact me, Eric Stone, on 07789 682502 or email sales@wmsgroupuk.com
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0844 477 4909 www.wmsgroupuk.com 8/1/11 13:59:19
right click
...in association with GForces
Digital is more than simply joining Twitter and Facebook Tim Smith on harnessing the power of social media
2
010 was the year social media eclipsed search, Facebook became mainstream and mobile started its journey to pre-eminence. In the light of these enormous cultural shifts, the technologies actually change the way societies behave. I am often asked how the new consumer patterns directly affect the motor industry and how motor retailers can generate revenue out of them instantly. Doing digital is more complex than just getting a new website, creating a Facebook page or moving marketing budget to online media. We all know there has been a huge change in the way consumers interact with media and hence absorb and react to advertising and marketing. The shift is away from offline media to digital: search, pay-per-click, digital display advertising, social media marketing and email to name the most common. Dealers know this. They understand the world around them is changing often because their family and friends are interacting with this new media so often. I was at a regional manufacturer conference earlier in the year attended by senior managers from the motor trade and I posed a simple question: how many of you have a Facebook account? The answer was less than 10 per cent of the attendees. Now this is neither wrong nor right – I am not judging here. However, it goes to the root of the reason why there is a fundamental misunderstanding of the internet. Forrester claim the average household spends 13 hours a week online with peak times between 7-10pm. Our own latest research has shown 51 per cent of dealer visits were recorded outside of normal working hours yet only two per cent of the Top200 dealers in the UK were using some form of live contact response to answer queries real-time. It is unthinkable Tesco or EasyJet would close
‘Doing digital is about delivering service, response and convenience the way the modern-day car buyer desires.’ at this time. Asda was the first supermarket to open 24hrs a day and used technology to improve its market reach in light of changing consumer attitudes to early hours shopping. E-tailer ASOS managed to triple their sales in the first year by focusing heavily on the functionality and usability of its site and by listening to their customers and their 24-7 customer-care line on Facebook deals with burning questions from consumers in minutes. Dealers would do well to follow suit. Having worked in technology across many
industries, I have seen banks, supermarkets, law firms and retailers hunt technology that will improve their operations, open up new markets and deliver real competitive advantage. They leverage this technology and adapt their cultures and operations to deliver to their consumers. In the motor retail industry, technology tends to be applied with an operations perspective, so, if it doesn’t make life easier for a dealer, it’s not really worth doing it. Doing digital is about re-engineering your thinking, your DNA and hence your dealership in line with the modern-day consumer, not your own personal preconceptions. It is about delivering service, response and convenience the way the modern-day car buyer desires. It is time dealers understood the real value of internet technology in that it helps deliver consumer service 24-7.
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auctions
Henstock
Pointing to future with social media appointment
Auction stations The future of motoring is firmly in the hands of the consumers
D
espite rising fuel prices and other motoring costs, it would be misleading to think that all motorists are now concerned with is buying smaller, more economical cars. In fact there is demand across the broadest selection of vehicles – from small city cars to prestige sports cars that are anything but fuel-efficient. The recent cold snap saw values for used 4x4s climb sharply and there are fewer less environmentally-friendly and more expensive ways of getting from A to B than in a ‘The key issue big off-roader. However, the writing is for EVs is on the wall that we need acceptability to make motoring more efficient and ‘greener’. The with the general last few years have seen motoring public, a range of eco sub-brands because they will launch, all using branded technologies to deliver low drive the demand.’ CO2 and impressive fuel consumption figures. These have proved attractive to fleet buyers and user-choosers who have shown a preference for smaller, more fuel-efficient models. But there has also been a real buzz about electric vehicles (EVs) in the past 12 months. They’re seen by some as logical heirs to the current carbon-based motoring model. So are we standing on the brink of a brave new world or another false dawn? Some would point to the relative success of the hybridelectric market as a model for the pure EV to follow. However, an electric car with the safety net of a petrol engine neatly avoids the need to establish an alternative fuelling infrastructure. The key issue for EVs is acceptability with the general motoring public, because they will drive the demand in both the new and used market. In the early days, these will be relatively expensive cars so it is likely to be the well-heeled, environmentally aware, professional demographic that will be buying them. And what about used EVs? Currently, pure electric vehicles remain such a small part of the used vehicle market in terms of volume, it means few benchmarks have been set in terms of desirability and therefore price. Selling a used electric car in the current market is a combination of remarketing and missionary work! But just to place everything into context, when BCA asked motorists what type of fuel their next car would run on, just three per cent said they would buy an electric-hybrid or electric car – compare that to the 45 per cent who will buy a used or nearly-new petrol car. The revolution may be coming but it has a long way to go…
Who is Simon Henstock? Simon is UK network operations director for BCA. Find out more at bca-europe.com or call 0845 600 6644.
M
otorpoint is embracing the current and increasing trend of appointing a social media
specialist. The Derby-based business – which also runs Auction4cars – is believed to be one of the uK’s first motor retailers to appoint a social media specialist. The car supermarket has recruited 24-year-old Keele university graduate Ian Stanley to steer the company’s voice online. A former blogger, he will help to grow Motorpoint’s social media presence through facebook and Twitter, using exciting new initiatives such as TwitPic Thursday, to increase the firm’s ‘following’. He will also oversee the roll-out of the firm’s brand new website. Called ‘Inside Motorpoint’ the new site will incorporate all of the latest news, views, photos and videos relating to the company’s various
sponsorships in sport. Stanley says: ‘I am absolutely delighted to be joining Motorpoint. The company has always striven to be an innovator, and I am looking forward to continuing that tradition, using Motorpoint’s social media channels to develop closer relationships with our customers – past, present and future.’ Motorpoint’s managing director Gary Warren said: ‘We launched Motorpoint over a decade ago determined to revolutionise the way in which we bought both new and nearly new cars. We believe we have gone a long way towards achieving our goal. ‘We have never been ones to rest on our laurels though, and the arrival of Ian is just another example of our continuing efforts as a company to show that Motorpoint is anything but the norm when it comes to car retailing in this country.’
Prices on the rise
BCA lists bizarre sales
AUCTION4CARS has said that November experienced average used car prices rising slightly. New figures from the car auction website revealed average prices had risen to £2,782, a jump of 1.4 per cent, evidence that prices are levelling off after a series of recent price hikes. Dealers on the search for used stock is keeping up sales volumes, say the firm. At the moment, the site is selling a vehicle every 20 minutes. Neil Prescott, group disposal manager at Motorpoint, said: ‘We expect this trend to continue into 2011, in spite of the continued shortage generally of used quality cars.’
BCA has drawn up a top 10 list of the most unusual cars to have been sold in its auction rooms in 2010. The list ranges from a bizarre diesel powered road train to the sublime Bugatti Veyron. ‘This year’s big ticket items were a 2006 Bugatti Veyron, which went for £625,000 and a 2008 Rolls Royce Phantom, which realised £195,500,’ says Tim Naylor at BCA. The Nissan 100 NX ‘rabbit car’ which famously competed in Car Dealer’s Bangers4Ben also formed part of the list. It, along with the other bangers, went under the hammer at BCA’s Blackbushe site and raised funds for the automotive charity BEN.
58 | CarDealerMag.co.uk CarDealerIss35.indd 58
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Q quoteware
CarDealerIss35.indd 59
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Trader d i r e ct o r y
F
inding the right cars at the right prices isn’t always easy difficult. On top of that, selling cars that you don’t necessarily want to put on the forecourt can be tough
Alfa Romeo Sturgess Alfa Romeo Scott Allen 0116 275 8800 scottallen@ sturgesscars.co.uk Buying used Alfa Romeos up to five years old Benfield Alfa Romeo Dax Pearce dax.pearce@Benfield motorgroup.com Alfa stock wanted up to 40,000 miles. Call for immediate bid. 07501 257220 or 0191 211 2200
Aston Martin Mangoletsi (Holdings) Limited Fraser info@mangoletsi.com 01565 722899 HWM Aston Martin Paul Spires paul.spires@hwm.co.uk 01932 240611 07850 326755
Audi Wimbledon Carriage Company Limited John Crisp 07885 211872 Walton & Epsom Audi Mark Loughnane 01932 220404 07739 519306
BMW Williams Rochdale Craig Fenlon 01706 717700 07808 092110 Vines Group Dominic McConnon Buying used BMWs up to 5 years old 07776 246905 dominic.mcconnon@ vinesguildford.bmw-net. co.uk
Bentley Harwoods Simon Elkin 01798 877211 07803 088711 Jack Barclay Bentley Derek Bennett 020 7629 7444 07713 887 886
Citroen Marlborough
too. Our Trader Directory aims to alleviate these problems. Instead of thumbing through endless pages in price guides looking for the right trader, you can consult the Trader Direc-
Ferdi Khab ferdik@marlborough. uk.com 020 8225 5840 07949 219 830
Hyundai
Daihatsu
Hatfield Hyundai Mark Littler/Tim Barnes 0161 767 9500 07920 599 394 07787 921 222
Woodford Motor Co Ltd Stephen Barnard 0208 504 0017 Proven Daihatsu Keith Pattison 01428 652554 07771 547406
Ferrari HR Owen Ferrari Nick Carey nick.carey@hrowen.co.uk 07824 362229 Monza – Ferrari Andrew Ludlow ferraribuyer@ntlworld. com 07889 305 053 Maranello Ferrari John Dutton 07817 019 456
Fiat Glyn Hopkin Ltd Glyn Hopkin 07730 711889 Sturgess Fiat Ian Callis 0116 254 1717 icallis@sturgess cars.co.uk Buying used Fiats up to five years olds
Ford Benfield Des Sammon des.sammon@benfieldford.co.uk 07831 828024 Lifestyle Ford Richard Walker 07748 177889
Honda Brayley Honda Mark Corr 07812 342 635 Thames Honda Group Jerome Chandiram 0208 845 3551 Holdcroft Honda Luke Regan / Chris Thursfield 07971 543884 07813 737 921
Bushey Heath Hyundai Jon O’Donoghue 0208 420 5100 07976 177 959
Jaguar Sturgess Jaguar Chris Allen chrisallen@sturgess jaguar.co.uk 0116 282 6868 Buying Used Jaguars up to five years old
Murray Motor Company Graeme Robertson 0131 200 8888 07765 252745
Maserati Meridien Modena Warren Butt 02380 283404 07860 530703
Lifestyle Mazda Mark Spowage 01293 845045 07974 770020
W R Davies Neil Swan 07739 625958
Jeep
Mercedes-Benz
John Holland Sales John Holland / Mark Holland 07836 690818 07831 824644
Hughes of Aylesbury Tony Oblein 01296 319600 07785 781623
Chapelhouse Kia Andy / Neil 01925 570800 07891 531129 07825 311 297
Lexus Lexus Twickenham Dave Cooper / Steve Gurr 07831 704134 07921 408983
Land Rover Sturgess Land Rover Chris Allen chrisallen@sturgess jaguar.co.uk 0116 282 6969 Buying used Land Rovers up to five years old Beadles Land Rover Greg Wilcox g.wilcox@beadles-landrover.co.uk 07740 717209
Lotus Dick Lovett 07808 940777
Nissan
Mazda
Mitchell Mazda Brian Blanchard 07826 817850
Lee Gilmour Tower Hill Garage 01923 263700 07768 367085
North City Autos (Chingford) Ed Tyrrell Interested in low mileage FSH vehicles 020 8524 8855 07736 610285
Sturgess Nissan Ian Callis 0116 254 1717 icallis@sturgess cars.co.uk Buying used Nissans up to five years olds
HR Owen Nick Carey nick.carey@hrowen.co.uk 07824 362229
Charles Hurst Jaguar Stewart Begg 0208 938 1300 07534 927 821
Kia
tory, either in the magazine or online, and find them right away. If you’d like to be included you can submit your details in the Directory find out how at the bottom of this page.
Tony Purslow Ltd Simon Sneath 07810 771 161 Mercedes Benz of York Darren Hewitt-Craft dhc@rybrookmercedes. co.uk 01904 694000 07701 001491
Mini Vines Group Dominic McConnon Buying used MINIs up to 5 years old 07776 246905 dominic.mcconnon@ vinesguildford.bmw-net. co.uk Sytner Mini Matthew Jones 07870 688793 Specialist Cars Stevenage – Mini Jason Ayriss jason.ayriss@specialistcars.co.uk 01438 760303 07918 680445
Mitsubishi Livery Dole Mitsubishi Nigel Clegg 07836 516945
Peugeot Robins & Day Guildford Julian Mills 01483 414 311 07795 291087
Porsche Paragon Mark Sumpter 01825 830424 07778 968911
Renault Sunwin Renault Preston Sean Dean 01772 329900 07790 253827 Renault Retail Group Ian Millichip 07718 967026
SEAT Hobin Group Ltd – Seat Alex Cullen 07950 566427 Kings Seat Mike Read 07789 956937
Skoda Mitchell Skoda Richard Macklin / Ross Thompson 07500 539791
Smart Smart of Exeter Darren Webber 07940 756063
louis.jones@sparshattsgroup.co.uk 01489 785111 07775 508255
Suzuki Glyn Morgans Ltd Glyn Morgans 07836 240059
Toyota Currie Motors Toyota Dave Cooper / Steve Gurr 07831 704134 07921 408983 Toyota World Jamie Whitmore 07553 358404
Vauxhall Monorep - Vauxhall Andrew Ringer 020 8836 3031
Volkswagen Ridgeway Newbury Andy Jones 07917 635534
Volvo Sturgess Volvo Scott Allen 0116 275 8800 scottallen@ sturgesscars.co.uk Buying used Volvos up to five years old
General Buyers Sol Cars Tim Hancock Wanting part exchanges of all types up to 4k 07973722243 timfoxhancock@btopen world.com Barry Freedman 01753 543105 07836 338694 barry.freedman@virgin.net Trade buyer of PX vehicles anything up to £8k Philip Wight Motor Co Philip Wight Sensible buyer of hatch and estates up to £4k please. 01923 220000 phil@click4cars.co.uk
Subaru Cheam Subaru Richard James 07836 549553 Sparshatts Subaru Louis Jones
To have your details included here log on to CarDealerMagazine.co.uk/trader-directory.htm There’s also a more comprehensive list of traders on the website, updated throughout the month.
Prices for six month listings: £29.99 On Website | Or £39.99 for Magazine & Website Prices inclusive of VAT. Payments can be made online via credit or debit card. Your details will appear in the next available issue
60 | CarDealerMag.co.uk CarDealerIss35.indd 60
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[ Recruitment ]
Want to advertise here? We’ll beat any quote. Call (023) 9252 2434
MANAGEMENT POSITIONS GENERAL MANAGER – North West – Multi Franchise – £90k OTE GENERAL MANAGER – North West – Niche Franchise – £80k OTE FINANCIAL CONTROLLER – North West – Multi Franchise – £50k FINANCIAL CONTROLLER – Kent/ Surrey – Volume Franchise – £50k SALES CONTROLLER – North London – Volume Franchise – £45k OTE PARTS MANAGER – S/West London – Volume Franchise – £40k OTE PARTS MANAGER – AREA TRADE SALES (MANUFACTURER) – Surrey/ Sussex Region – £37k OTE TELESALES * (AUTOMOTIVE PARTS) – Kent/ East Sussex – £28k OTE (* MUST have Motor Trade parts experience)
Due to the confidential nature regarding some of the assignments we are handling, they are not all able to be advertised. So if you are a successful manager, anywhere in the UK motor trade, in any department discipline, call us now in the safe knowledge that your approach will also be completely confidential.
CALL HARDING RECRUITMENT NOW: 01692 500198
Highfield House, Yarmouth Road, North Walsham, Norfolk, NR28 9AU | Tel: 01692 500198 | E: consult@hardingrecruitment.co.uk | W: hardingautomotive.co.uk
Want to DRIVE TRAFFIC to your website? Find out more by calling
0845 2508820 or visiting www.ukwebsites.net
Email: support@ukwebsites.net
Part of
CarDealerMag.co.uk | 61 CarDealerIss35.indd 61
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silver lining in the uk motor trade jobs market
They say every cloud has a silver lining but cloudy skies, with cold, dark, slippery conditions are something we have had to get used to over recent weeks both inside and outside the jobs market. Sometimes bad visibility can obscure good things ahead and jobs in the automotive industry are a case in question. Automotive recruiters John Gibson Associates have no shortage of jobs in the car industry for experienced
people, their shortage is finding the people for their outstanding vacancies. “Despite the doom and gloom portrayed in the media, the problem we have is finding good people for our clients in the car business” explained John Gibson of John Gibson Associates automotive recruiters. “The industry now recognises the value of dedicated, experienced staff and we are trying to lure back into the industry casualties of recessionary cuts in the past to fill today’s and future demands. Car sales may be volatile but after sales, service and bodyshop facilities still remain buoyant and skill shortages are dire. Good people currently not working or employed in the industry are our life blood and we need to hear from them.” $BS%FBMFS 1PXFS
Winner 2010 Recruitment
2010 Automotive Recruiter of the year
CarDealerIss35.indd 62
Based in York but with Associate Directors across the country reporting similar problems with sourcing people, it appears a nationwide opportunaity to get people back into employment or advance their career. Being a free service to applicants means there’s no cost, no obligation and nothing to lose! “Perhaps we cannot find everyone’s ideal job, but bringing employees and employers in the car business together over the last 25 years means we can learn of opportunities that are never advertised, giving applicants the best chance of landing a new position” John concluded. For more information email John or visit his website at www.jgauk.com.
Tel: 0845 644 3003 THE LOCAL, REGIONAL, NATIONAL AUTOMOTIVE RECRUITERS
Web: www.jgauk.com Email: info@jgauk.com
8/1/11 13:59:27
New year... New job?
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www.justcarjobs.co.uk
MAKING THE RIGHT
connection
As an EMPLOYER in today’s highly competitive market, you need real talent in your business. Don’t just choose any recruitment agency. Choose Connect - automotive recruitment specialists in Yorkshire and the North East. As a CANDIDATE, if you stand out from the crowd and are looking for a new challenge we want to speak with you today!
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Technicians Parts Advisors Sales People Sales Administrators Warranty Administrators Service Receptionists Sales Managers Service Managers Parts Managers Accident & Repair Centre Managers Aftersales Managers General Managers Directors
Call 01430 473053 for a confidential discussion Or email your CV to: admin@connect-hr.com You can also upload your CV at: www.connect-hr.com CarDealerIss35.indd 63
8/1/11 13:59:28
used cars
Quarter three sales give hope for future
A change for the better Autotrade-Mail has launched a new facility giving dealers greater flexibility in doing business. Members will now be able to collect and deliver vehicles between themselves at the touch of a button. The 2010 Car Dealer Power award winner for Lead Generation has introduced the service to ease ever increasing time pressures on dealerships and showroom staff. Autotrade-mail’s operations director Kevin Watson said: ‘Efficiency when buying and selling trade stock can make a massive difference to stock turn and profitability of a business. ‘The introduction of the delivery service in association with BCA is just one of the steps we’ve taken this year to assist dealers. BCA has a national reach with its drivers and therefore was an obvious choice to partner with.’ The service is already seeing successes – hundreds of quotes for deliveries have been given, with many cars moved says the firm.
EXPERIAN has published its UK used car sales statistics for the third quarter of 2010 – and the results are good. 1,801,258 used cars were sold during July, August and September; a four per cent increase on quarter three 2009 and 1.1 per cent higher than quarter two 2010. This makes quarter three, 2010, the first quarter to see sales increase both annually and quarterly since quarter one 2006. The mini, MPV and 4×4 categories saw rises of 9.2 per cent, 14.1 per cent and 7.7 per cent respectively. The south east was the best performing region in the UK for used car sales, with a total of 382,697 cars sold. This was an 8.4 per cent increase compared to quarter three 2009. Joe Myers, director of commercial for Experian, said: ‘Quarter three is historically a slow period for used cars sales, which makes this improvement in sales volumes very positive news for the used car industry. ‘By taking advantage of market intelligence around car sales, dealers can use the surge in transactions to uncover the latest
Prices rise as stocks fall HIGH-quality used cars will command stronger prices in early 2011 as availability of stock dwindles says CAP. Figures reveal the fall, compared to 2009, slowed in December. Small family cars and large family cars are now trading around five per cent and 4.1 per cent less than last December. However, 4×4s continued their remarkable performance to end the year – they are worth almost 10 per cent higher than in December 2009.
buying trends and adapt their stock offering to meet market demand and maximise sales opportunities.’ Giving a dealer’s view, Trevor Finn, chief executive of Pendragon, said: ‘Our national representation concurs with this view of a strengthening used vehicle market in quarter three of 2010 versus the prior year and quarter two of 2010. ‘Interestingly, our statistics indicate that within our premium Stratstone division consumers are switching to cars over three years old as opposed to cars under three years old. Furthermore, when comparing quarter three 2010
with quarter two 2010, within our volume Evans Halshaw division our average sales price has fallen by 2.1 per cent indicating that consumers are still seeking value in these tight economic conditions.’ Ford remains the top-selling make with 14 per cent (260,067) of all used car sales during quarter three. While Vauxhall’s Corsa becomes the best selling car by volume in quarter three 2010 with more than 76,000 units sold, Mercedes Benz saw sales rise by 14.3 per cent increase year-on-year. Sales of electric and hybrid models continued to increase, rising by 36.7 per cent and 46 per cent respectively.
Glass’s depreciation busters list topped by VW Tiguan GLASS’S has revealed the top 10 cars that have held their value the best over the past three years. Volkswagen’s Tiguan (168bhp) SE 4Motion 5d topped the list retaining 68 per cent of its value, or lost £2,394 annually. SUVs and 4x4s made up the majority of the list with the Mini, Audi A5 and Audi TT being the only
exceptions. Glass’s managing editor Adrian Rushmore said: ‘The VW Tiguan is blessed with all the right ingredients to give it great residual values. ‘Apart from having the cachet of the VW badge, it has never been marketed hard as a new car and there have been prolonged periods of very limited availability.’
The most searched for cars in December on... Compucars
Motoring.co.uk
Motoring.co.uk (bodystyle)
ContractHireAndLeasing.com
1 BMW
3 Series
1 Suzuki
SX4
1 4x4
1 Audi
A3
2 Mercedes
C Class
2 Skoda
Yeti
2 Hatchback
2 Volkswagen
Golf
3 Ford
Focus
3 Daihatsu
Terios
3 Supermini
3 BMW
3 Series
4 VW
Golf
4 Ford
Fiesta
4 MPV
4 Mercedes-Benz
C Class
Astra
5 Vauxhall
Corsa
5 Saloon
5 Audi
A5
6 Ford
Focus
6 Estate
6 Audi
A4
5 Vauxhall 6 Land Rover
Range Rover
7 Mercedes
E Class
7 Vauxhall
Astra
7 Green
7 Mercedes-Benz
8 BMW
1 Series
8 Volkswagen
Golf
8 Coupe
8 Land Rover Range Rover Sport
9 BMW
5 Series
9 Volkswagen
Polo
9 Convertible
9 Audi
Q7
10 Audi
A4
10 Renault
Clio
10 Audi
Q5
E Class
64 | CarDealerMag.co.uk
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Weak December ends year of recovery S MMT figures reveal that the 2010 market rose by 1.8 per cent compared to 2009’s figures. 2,030,846 units were registered – 35,847 up on 2009’s market. The fleet market also rose by more than 10 per cent, but due to the ending of scrappage scheme, private volumes slipped back. However, December saw registrations fall by 18 per cent – the sixth successive month to see registrations down. Paul Everitt, SMMT chief executive, said: ‘2010 was a year of recovery for the motor industry with new car registrations up 1.8 per cent on 2009. Economic
conditions remain extremely challenging, but industry expects demand to strengthen in the second half of the year. ‘Competition in the retail sector will intensify as the industry seeks to re-balance demand across its new and used car and service and repair business. UK motor manufacturing recovered particularly well in 2010 and the outlook is for further steady growth this year.’ Ford’s Fiesta topped the charts as 2010’s best selling car for the second successive year with 103,013 units registered. The Vauxhall Astra, Ford Focus and Vauxhall Corsa followed with the
Volkswagen Golf rounding off the top five. December, however, saw the Vauxhall Astra taking the top spot with the manufacturer shifting 5,377 units of its sixth-generation model. The Corsa followed while the Fiesta dropped to third place in the table. The Mini and Ford Focus – which makes way for an all-new model in March – were ranked as fourth and fifth respectively. Looking forward to the 2011 market, the SMMT predicts a decline of five per cent to 1.93m units with ‘difficult market conditions’ being the quoted reason.
SMMT sales data December / year to date
Figures supplied by SMMT
December Marque
Abarth Alfa Romeo Aston Martin Audi Bentley BMW Cadillac Chevrolet Chrysler Citroen Corvette Daihatsu Daimler Dodge Fiat Ford Honda Hummer Hyundai Infiniti Jaguar Jeep Kia Land Rover Lexus Lotus Mazda Mercedes-Benz MG MINI Mitsubishi Nissan Opel Perodua Peugeot Porsche Proton Renault Saab SEAT Skoda smart Ssangyong Subaru Suzuki Toyota Vauxhall Volkswagen Volvo Other British Other Imports Total
2010
87 1,077 71 5,075 48 7,373 0 894 91 3,556 0 0 0 23 2,839 13,953 3,828 0 3,108 44 1,092 186 2,464 2,236 218 51 2,443 5,324 10 4,774 855 6,403 0 37 6,178 613 38 6,007 750 2,039 2,895 443 3 424 1,590 4,853 16,548 10,828 2,332 55 61 123,817
% market share
2009
0.07 0.87 0.06 4.10 0.04 5.95 0.00 0.72 0.07 2.87 0.00 0.00 0.00 0.02 2.29 11.27 3.09 0.00 2.51 0.04 0.88 0.15 1.99 1.81 0.18 0.04 1.97 4.30 0.01 3.86 0.69 5.17 0.00 0.03 4.99 0.50 0.03 4.85 0.61 1.65 2.34 0.36 0.00 0.34 1.28 3.92 13.36 8.75 1.88 0.04 0.05
113 599 69 5,014 36 7,866 62 1,516 193 6,600 0 59 1 208 5,459 21,732 4,046 0 3,335 4 1,507 317 4,858 2,053 247 30 4,716 6,688 14 3,859 536 6,284 0 70 6,762 360 64 5,208 309 2,477 4,878 1,029 25 488 1,672 6,095 14,920 14,948 3,464 58 88 150,936
Year to date (YTD) % market share
0.07 0.40 0.05 3.32 0.02 5.21 0.04 1.00 0.13 4.37 0.00 0.04 0.00 0.14 3.62 14.40 2.68 0.00 2.21 0.00 1.00 0.21 3.22 1.36 0.16 0.02 3.12 4.43 0.01 2.56 0.36 4.16 0.00 0.05 4.48 0.24 0.04 3.45 0.20 1.64 3.23 0.68 0.02 0.32 1.11 4.04 9.88 9.90 2.30 0.04 0.06
2010
%market share
2009
%market share
1,425 8,834 1,080 99,828 993 109,418 24 13,678 1,392 73,317 2 170 2 789 53,093 280,364 63,652 4 61,752 232 16,417 2,078 56,114 37,272 6,202 577 45,449 74,977 282 43,894 12,209 89,681 0 761 109,324 6,784 767 95,608 5,898 32,935 41,240 7,651 242 3,897 21,484 87,396 247,265 174,655 37,435 1,049 1,254 2,030,846
0.07 0.43 0.05 4.92 0.05 5.39 0.00 0.67 0.07 3.61 0.00 0.01 0.00 0.04 2.61 13.81 3.13 0.00 3.04 0.01 0.81 0.10 2.76 1.84 0.31 0.03 2.24 3.69 0.01 2.16 0.60 4.42 0.00 0.04 5.38 0.33 0.04 4.71 0.29 1.62 2.03 0.38 0.01 0.19 1.06 4.30 12.18 8.60 1.84 0.05 0.06
1,381 9,067 1,183 91,172 761 98,683 177 18,660 2,692 72,450 36 2,306 18 2,672 60,337 316,369 74,819 46 56,726 45 18,234 2,502 50,637 29,185 7,266 485 47,934 72,281 374 39,866 11,074 77,924 193 650 102,574 5,280 960 63,174 7,486 29,987 37,253 8,363 787 3,730 28,539 102,612 237,840 161,137 34,857 902 1,313 1,994,999
0.07 0.45 0.06 4.57 0.04 4.95 0.01 0.94 0.13 3.63 0.00 0.12 0.00 0.13 3.02 15.86 3.75 0.00 2.84 0.00 0.91 0.13 2.54 1.46 0.36 0.02 2.40 3.62 0.02 2.00 0.56 3.91 0.01 0.03 5.14 0.26 0.05 3.17 0.38 1.50 1.87 0.42 0.04 0.19 1.43 5.14 11.92 8.08 1.75 0.05 0.07
% Change
-23.01 79.80 2.90 1.22 33.33 -6.27 -100.00 -41.03 -52.85 -46.12 0.00 -100.00 -100.00 -88.94 -47.99 -35.80 -5.39 0.00 -6.81 1,000.00 -27.54 -41.32 -49.28 8.91 -11.74 70.00 -48.20 -20.39 -28.57 23.71 59.51 1.89 0.00 -47.14 -8.64 70.28 -40.63 15.34 142.72 -17.68 -40.65 -56.95 -88.00 -13.11 -4.90 -20.38 10.91 -27.56 -32.68 -5.17 -30.68 -17.97
% Change
3.19 -2.57 -8.71 9.49 30.49 10.88 -86.44 -26.70 -48.29 1.20 -94.44 -92.63 -88.89 -70.47 -12.01 -11.38 -14.93 -91.30 8.86 415.56 -9.96 -16.95 10.82 27.71 -14.64 18.97 -5.18 3.73 -24.60 10.10 10.25 15.09 -100.00 17.08 6.58 28.48 -20.10 51.34 -21.21 9.83 10.70 -8.51 -69.25 4.48 -24.72 -14.83 3.96 8.39 7.40 16.30 -4.49 1.80
CarDealerMag.co.uk | 65 CarDealerIss35.indd 65
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tail light
sub-Prime Time J
anuary is traditionally the time to review the year ahead. So here’s a brief overview on my thoughts regarding 2011 in terms of the motor trade and motor finance. Consumer spending has been deflated for some years even with the various government-backed schemes to stimulate growth, so generally speaking we’d be expecting to see a growth rebound following the last three years, but this isn’t likely to happen. We’re set to face increased VAT, deep cuts in public spending, low levels of consumer confidence (we’ve already seen rioting on our streets during 2010) and the various impacts from the global economy and, for the uK in particular, the Eurozone’s faltering attempts to underpin and strengthen its overall fiscal structure. So the level of volatility in the economy is still a major concern and will continue to knock consumer confidence, meaning even if customers have the ability to change their car we’ll continue to see lengthening retention cycles as customers keep their cars well beyond their finance terms; which will also mean a continued shortage of quality retail stock. The overall volume of business will probably shrink when compared to 2010, and with it the overall levels of motor finance. With the continued reluctance of finance companies to provide unsecured finance, point-of-sale finance penetrations will continue to increase and will be the key finance facility for customers in the car buying cycle. Manufacturer-owned finance companies will increase incentives to stimulate purchases of their own brands, and we’ll also see these finance companies start to participate in the general motor finance point-of-sale market in an attempt to maintain their business levels and to seek new areas of growth potential during the continued market slow-down.
‘Continued increase in retention cycles makes maintaining customer relationships between sales an imperative.’ So I predict a fierce battle to be fought in the ‘middle-market’ prime motor finance arena in the coming years which is likely to mean more finance company consolidation and/or withdrawal from the market as margins get squeezed and arrears come under further pressure. for dealerships I think 2011 will be much the same as 2010, but there are a number of key points to consider and to focus upon. firstly, the continued increase in retention cycles makes maintaining customer relationships between sales an imperative; and effort expended on this area in 2011 will be time well spent. Secondly, consumers will be experiencing a new wave of austerity and as such dealers will need to ensure their stock matches the desires and needs of their local customer base at this time; so don’t assume, and make sure you investigate and fully understand what your target market is looking for at this time and place. Lastly, competition across motor finance providers is going to be fierce so make sure you’re getting value from your chosen finance providers. I think the market and consumer confidence will ease towards the end of 2011, but then I thought that last year. We’ll just have to wait and see.
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
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