Car Dealer Magazine: Issue 12 by Blackball Media

CarDealer. Issue 12 | March 2009 | CarDealerMag.co.uk

Behind the scenes at ﬁrst Paragon auction [p43]

Driving the future of the motor trade

FoRD Ka

WHY BABY FORD’S ARRIVAL IS PERFECTLY TIMED aLSo tEStED: alfa Mito | New Vw Golf | New Porsche Cayman | alfa 8C

aRY JaNu

T SMM S E L

Sa ES FIGu6R5 p

FINANCE

Cashing in [It’s not as hard as you think to ﬁnd ﬁnance]

Why VAT cut has FAILED car dealers

EXCLUSIVE: Our survey reveals Chancellor’s carrot for buyers has NOT worked

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start

DON’T MISS IT NEXT MONTH!

Issue 12 | March 2009

IT’S BEAUTIFUL, isn’t it? It’s gone straight to the top of my Favourite Cars of all Time chart. In fact, if those American weirdos on that Five documentary that liked to, er, have ‘fun times’ with their cars were found humping the side repeater of an Alfa Romeo 8C I might – and I stress might – just have understood. As it happened they were making sweet music with a VW Beetle which, let’s face it, is just plain weird. Anyway, I’m off topic. Normally in this column I like to guide you, like a loyal sherpa, through the current issue – but this time I’m not. Instead I’m going to tell you all about something that’s coming up next month… You have probably worked out by now that we like to have a bit of fun here at Car Dealer – the idea is to give you a trade publication you actually want to read every month rather than something dull and lifeless (I mention no names). So, over the weekend just gone, the Car Dealer team took on a challenge. In true Top Gear-style, four of us were given £200 each to go out and buy a car. That car had to be road legal and capable of transporting us from our HQ near Portsmouth to

John O’Groats and back. Along the way there were a series of challenges – including a trackday and an MPG marathon – not to mention getting to the tip of the British Isles. The plan is – if they all made it back – to sell the cars for as much as possible and give the cash to BEN, the automotive industry charity. To make things interesting we got together a varied bunch of challengers. They were Chrysler car salesman Duncan Chappell, who planned to use his trade connections to get a car; Dan Harris, a Sky fitter and friend of the mag, who planned to plunder eBay for wheels; plus deputy editor Rich and myself. We planned to do the same thing – beg, borrow and tease a motor out of our Car Dealer contacts books. Unfortunately, Rich had to drop out at the last minute so, not wanting to lose any money for BEN, we found a stand in at the last minute in the shape of baby brother Baggott. As with all good challenges there was an element of competition. Points were awarded for spending under budget, completing tasks and not breaking down. And the winner will be decided once we’ve all sold the cars. As you can imagine, there’s been a fair amount of rivalry already – from who’s got the coolest car, to who’s going to win. By the time you read this you’ll be able to log on

to our special website – Bangers4BEN.com – and find out if we managed the task and read our blogs from the weekend. Or, if you want a surprise, hang on until next month when we’ll be running a special feature on the trip. And the month after we’ll reveal the winner. Me. Or so I hope. Until then you’ll have to make do with this issue which is packed with goodies. There’s a brilliant behind the scenes look at the auction revolution that is Paragon Remarketing (p43), road tests of the Alfa 8C you see below, Ford Ka, new VW Golf and Alfa MiTo. Oh, and to prove we can do serious – just take a look at our survey (p39). In conjunction with HPI we sent questions to 10,000 car buyers and the answers they gave really are astonishing. Please forgive the pie charts – as much as I hate them, it really was the only way to display the information without a bunch of numbers, which I’m sure you’ll agree would have been worse! Happy selling…

James Baggott, Editor

‘The roofless 8C is a teeny bit slower, but almost as gorgeous and has two benefits: you can hear that delicious engine and it means Alfa has to make 500 more.’ Cult Cars: Alfa Romeo 8C, p34

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ignition Issue 12 | March 2009

‘The Cayman is almost too good, presenting Porsche with a tricky conundrum if it’s to stop it pinching sales from its £30k-dearer big brother.’ Road Test, p32

dashboard

CarDealerIss12.indd 5

Cash is out there

forecourt

Clear-out is complete

24 29 31 32 34 36

Volvo sites sold £2.3bn lifeline

features

Crisis? What crisis?

Taxing issues

How firm could save you £81k

VAT Cut has failed

Exclusive survey’s shock results Exclusive chat with Fiat chief

Mandy steps in to help makers

Autotradebid launch Golf = happy dealers

Uk launch chief talks to Car dealer

Big Mike on crap cars

Ford Ka New VW Golf Alfa Romeo MiTo Porsche Cayman Cult Cars: Alfa 8C Sales Legends: MK1 VW Golf Shock survey Full analysis of Car dealer and HPI’s shock car buyer report

Fly on the wall We sit in on Paragon’s big launch

49 51 52 53 54 58 61 63 64 65

Right Click Attitude is the key to success

Servicing

Car dealer columnist honoured

Dot Com

Why you should chase down-sizers

LCV Insight

Aston Villa’s new signings

Auctions Products On the Spot Trading Places HPI Valuations SMMT sales figures January results in full

Sub-Prime Time don Brough’s finance column

CarDealerMag.co.uk | 05

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agenda

Puzzlingtimes Crisis? What crisis? It’s all a matter of attitude, according to Jigsaw Finance’s Kurt Bradbury. We catch up with the man who takes his inspiration from none other than Stoke City...

urt Bradbury of Jigsaw Finance has had enough. ‘I don’t know about you, but I am sick to the back teeth of hearing people talk themselves into a depression. It’s absolutely relentless!’ Surely, he poses, you agree? All this constant negative talk is doing us no good whatsoever. His particular gripe is with doom-mongers. ‘These lurk like viruses in our business and industry,’ he moans. ‘They make all the excuses – but really, what’s new?’ Their whinging is relentless, says Bradbury.

Weather’s too hot. England football team is rubbish. Their customers are all cash-rich so don’t borrow any money. Nobody’s got any money. They can’t get customers accepted on finance. It’s the school holidays and everyone’s away. Their customers don’t buy PCP – and they don’t believe in it, anyway. And so they go on. ‘on this basis, I think october 4 is the only day they can sell a car – so long as it’s mild and it falls on a weekday!’ Bradbury stresses he is not being flippant or making light of the situation. It is, however, how we all react to difficult situations or slow trading periods that is key. ‘What is absolutely true is that people want to buy new cars,’ he explains. ‘It’s almost embedded in our dNA. We have a love affair with our cars, whether it be an Astra or an Aston, a Cooper or coupe.’ The key to success, he says, is to prey on this love affair. Sure, many customers are going ‘cold turkey’ and resisting change. However, official figures state that 1.7m people will still buy a new car this year! ‘All we have to do is throw temptation in their way,’ he says. ‘Cars have never been cheaper. Money has never been cheaper. Fuel prices haven’t been this cheap in a long while.’ oK, but what about the real issues that the doom-mongers say is stopping them selling cars? ‘What about them?’ says Bradbury. This, he says, is where companies such as Jigsaw Finance can help. ‘Negative equity? Jigsaw has specialist negative equity loans to cater for this. We can even source loans up to 150 per cent of retail. ‘Threat of negative equity in the future? Jigsaw can offer a guaranteed future value on PCP – on terms from 24 to 60 months, to make monthly payment lower. ‘Lenders tightening up on underwriting? As well as Jigsaw’s own finance, we have most of the finance houses on our panel. These provide dozens of

Kurt Bradbury (top) reckons many dealers are blaming everybody but themselves for the downturn in sales. He says his team have the products to drive sales forward

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Specialist M otor Finance Solutions Helping you sell more ca rs more ofte n

Products Service Technology Marketing Training Support Setting your business apart

different options. Basically, if anyone can get a deal accepted, we can.’ In short, Bradbury reckons he has the answers to the nay-sayers, and can help the industry fight even the toughest times. Intriguingly, he says this optimism maybe stems from being a Stoke City fan! ‘Even the most ardent supporter didn’t think Stoke had a shout of promotion to the Premiership in 2008. We did – and then, to go on to craft a victory against the mighty Arsenal in the first few games… well, I can say with authority: if Stoke can do that, then this credit crunch should be a breeze! ‘What’s set Stoke apart,’ he continues, ‘is rory

delap’s now infamous long throws.’ Hmm… what on earth has this to do with selling cars, Bradbury? ‘Like rory, we need to develop new tactics, as well as develop old ones. We don’t have to be the biggest or the wealthiest to succeed. We just need to be smart and play to our strengths. ‘A former boss of mine had a saying. Knowing him, he probably borrowed it, but it’s still always stuck with me – and is very true today: ‘There are three things that will guarantee you

success: 1. Attitude 2. Attitude and 3. Attitude. ‘If your attitude is negative and full of gloom, what chance do you have? Particularly when companies like us have answers to even the trickiest problems you may face.’ Be positive! or else you may have Bradbury to answer to… give him and his team a call on 0845 680 0111 or log on to jigsawfinance.com/puzzle to register your interest. [CD]

WORDS OF WISDOM: JIGSAW’S KURT BRADBURY ‘I don’t know about you, but I am sick to the back teeth of hearing people talk themselves into a depression. It’s relentless!’

‘What is absolutely true is that people want to buy new cars. It’s almost embedded in our national DNA.’

‘Yes, some customers are resisting change. However, ofﬁcial ﬁgures state that 1.7mpeople will still buy a new car this year!’

BRADBURY ON... The financial ‘crisis’

BRADBURY ON... The demand for cars

BRADBURY ON... The bright side

CarDealerMag.co.uk | 07 CarDealerIss12.indd 7

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dashboard Ford and Vauxhall hike up their prices

Ford and Vauxhall are to raise new car prices. Britain’s two biggest car makers are blaming the weakness of the Euro for the rises. The increases will see five per cent added to Vauxhall prices, and an average of 4.7 per cent added to Ford models. It’s because cars built by the two brands are made in the ‘Eurozone’ and that means sales in sterling are worth less. Ford Ka tested, p24

TAX ADVICE SPECIAL

Experts could find you £81k Tax specialists secure thousands of pounds back from the revenue

pecialist tax areas are enough to strike fear into anyone. The mysteries of the standard tax system are bad enough, without going into detail. But what if using such specialist knowledge could earn you an average of £81,000? And that simply finding out if you could benefit wouldn’t cost you a penny? Well, you’d rightly be interested! And you wouldn’t be alone – you’d be joining one of the 100-plus claimants that Baker Tilly have helped claim off the Inland Revenue. It’s all down to Capital Allowances, and how they affect property owners. Dealers, notably, are restricted in the AUCTION prices for used claims that they can make on buildcars rose by nearly six ings expenditure. In particular, for ‘Inper cent in January, as dustrial Buildings Allowances’ which post-Christmas demand cannot be claimed for showrooms. boomed. Manheim ‘But not many know,’ explains found that the first few Melanie Orriss, ‘that workshops could weeks of 2009 have seen have qualified for tax relief, subject an increase way beyond to a number of conditions being met.’ any normal seasonal upWhat’s more, neither do some of lift with buyers fighting these car dealers’ accountants. over the best cars. Orriss does though. She knows the Auction news, p54 intricacies of what’s involved. And also knows the IBAs are being phased out. In short, if you want to claim, you need to get on to it – now. TOYOTA is now the ‘Our work involves maximising the world’s biggest carclaim to capital allowances in respect maker after stealing the of property expenditure – thus number one title from reducing the tax bills of clients,’ she General Motors. explained. She does this by researchLast year’s global sales ing the tax history not of people, but for Toyota were just property. In short: ‘We find any lost under nine million, a fall allowances for clients’. of four per cent. GM, As well as the IBA opportunity, meanwhile, declined motor dealers can also claim capital even further by 11 per AT063_CarDealerQtr_Gee 24/11/08 17:19 Page 1 allowances for some aspects of their cent – to 8.35m.

Auction prices on the up in January

Toyota takes world number one spot

Baker Tilly have identified potential savings for dealers with workshops other buildings. Maximising these claims is where the real savings are. ‘For construction projects, such as new-builds and refurbishments, claims are generally made for items such as boilers and lifts – their cost is readily identifiable from suppliers’ invoices,’ she added. The trick to her work is to find the areas that are commonly overlooked. ‘Claims are missed for the full cost of

£96,000

potential savings indentified for one car dealer

fixtures integral to the building, as these are less apparent. Without specialist assistance, it can be expensive and time consuming to identify these.’ All accountants are pretty good at trawling through a list of invoices to find the cost of an air conditioning unit. But for the best tax relief, you also need the cost of installing that unit – including electrical, ducting and joinery work, and the associated construction work. ‘This is where traditional analysis

methods fall down,’ says Orriss. ‘Our approach is so different because we’ve developed our offer in conjunction with a firm of specially trained quantity surveyors.’ You can even claim on property you’ve brought from a previous occupant. ‘If they missed or didn’t maximise claims, you could take advantage,’ she added. Orriss points to a recent case, where Baker Tilly identified an extra £345k in allowances. Potential tax saving? £96k. Not bad… ‘All commercial property owners can benefit – including offices, retail and industrial,’ she explains. ‘It is applicable to any taxpayer, be they corporate, individual, partnership or LLP. The only proviso is the property must be held as a fixed asset. It doesn’t apply to property traders or developers – which shouldn’t be a factor for most car dealers, anyway. ‘Time is no bar,’ affirms Orriss, ‘so it does not just relate to recent spends. Much of our work is looking at situations going back years.’ Got to be worth a call – (01284) 763311. RICHARD AUCOCK

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

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Brown’s VAT cut has failed dealers EXCLUSIVE: Car Dealer and HPI find government’s VAT cut has failed to encourage motorists to buy a new car THE government’s much-hyped 2.5 per cent cut in VAT has failed! An exclusive Car dealer survey, in association with leading vehicle information organisation HPI, reveals the government’s carrot to get consumers buying has flopped. Less than 15 per cent of new car buyers told us it would make them more likely to buy a new car – despite the VAT cut having the biggest impact of all on big-ticket items such as cars. In contrast, 41 per cent said it is ‘unlikely’ to make them buy in 2009, and 10 per cent told us it was ‘very unlikely’ to work. damningly, 36 per cent of respondents said they would ‘definitely not’ buy a new car, despite the VAT reduction to 15 per cent. They’re just not swayed by the saving on a £20,000 car being £500 – and, on a £50k motor, £1,250. Initial evidence, late in 2008, suggested that the VAT reduction may have an effect. Some dealers reported November was extremely quiet, as buyers wisely held off buying a new car. Chris Hayden, Md of Ford retail, described November as being dead. ‘But december was a superb month, against trends of it normally being quiet,’ he told Car dealer.

Burgess Just checking Here are five simple steps to survive the downturn Survey suggests VAT cut isn’t working However, despite this initial flurry, it seems customers’ enthusiasm has faded. The realisation that the saving on an average supermini is less than £250 is undoubtedly having an effect. This is easily shadowed by many of the special offers and promotions car dealers are running. What’s more, if someone is struggling to afford a new car, such a small reduction in list price is unlikely to sway them. daniel Burgess, automotive director at HPI, said: ‘Confirming our worst fears, measures by the government to incentivise buyers to the new market are well and truly failing. In total, a staggering 86 per cent of those we surveyed reported that the VAT cut had not motivated them to consider a new car purchase.’ The damning survey in full, p39 January new car registrations, p65

Volvo: We’re not taking part in recession VOLVO will not be taking part in the recession – according to the company’s MD Peter Rask. In an exclusive interview with Car Dealer he declared the Swedish brand was bucking the downward trend. His comments come on the back of sales up nearly 11 per cent in 2008 – one of the few makers not to suffer big losses. And 2009 has started equally positively too, says Rask. ‘We are on a par with 2008 so far this year,’ he said. ‘This is in a market that is down by 37 per cent. Volvo UK is doing a sterling job.’ Rask says the improvements are down to the brand changing with a more cautious economic climate. ‘Something happened in 2008,’ he commented. ‘We were riding the wave of economic growth. Suddenly, that changed, into doom and gloom. At the same time, Volvo

UK started picking up.’ Volvo plans to reinforce sales by launching a range of green DRIVe models in 2009. These cars feature cost-effective economy boosts to conventional diesel engines. Volvo sites buy-out, p14

he economic downturn is hitting the new car industry hard, but the silver lining is that the used car market is offering new opportunities. Buyers are thinking smarter and being choosy, but they are spending. Meeting the demands of this new breed of customer could be a challenge, so these survival tips will protect your business and reap you rewards: 1. Keep stock fresh and maintained. By using a combination of comprehensive valuations services you can price your stock realistically to catch the eye of a buyer. Clean and tidy cars will also help, but displaying additional information, ‘The new car such as CO2 details, is especially important industry has so that VED and been hit hard, environmental impact can be taken into but the silver consideration. lining is that the 2. Give reassurance. A recent survey of car buyers used car market revealed a whopping 95 per is offering new cent would have greater opportunities.’ confidence in a dealer if they displayed an HPI certificate. It’s true! Our Dealer Support Pack gives you the promotional tools to reassure customers and secure sales. 3. Know your customers. Have they moved or their needs changed? Data cleansing and prospect targeting will help you stay in contact with your existing customers, while discovering new ones. 4. Don’t let warm leads turn cold. My partner and I visited some 15 dealers recently to look at what was on offer. Only one dealer actually bothered to take our details for future reference. It was this dealer that got my business, not just for one car, but two. 5. Act quickly to complete a sale. Up your sales by utilising tools that streamline the buying process. A seven-day free insurance offering, which you can provide without being FSA-regulated, means buyers can drive their purchase home on the same day, leaving you to count the revenue. At HPI we can help you make all of these steps and more. And throughout 2009 we will be launching new services that will further help you ride the economic storm. Car Dealer and HPI survey, p39

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

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Fiat chief: Our dealer clear-out is complete Humberstone tells Car Dealer he’s now looking forward to the future

Tew

FIAT UK chief Andrew Humberstone says he is delighted with his clear-out of dealers – and is now looking forward to the future. The group’s managing director said he has shed 40 sites and has managed to visit 85 per cent of his retail network. In an exclusive interview with Car dealer last year, Humberstone, pictured below, told how he was ‘mystery shopping’ Humberstone spoke to us at Qubo launch sites across the country to find out which Humberstone predicts to have 200 dealers were up to scratch. Now he has parted on board in Britain come 2010. company with the ones he wasn’t happy ‘our overall aim is to create a strong, with, leaving 120 dealers on board. sustainable Fiat business in the UK that At the launch of the new Qubo – a mini makes good money for us and our retailMPV – he explained how important small ers,’ he told Car dealer. ‘We seriously cars will be to the brand in the next year. believe that this is possible for two very ‘Small is the new big,’ he told launch basic reasons – our cars and our brand. attendees, revealing that 15,000 new Fiat ‘Today we see a sea change in people’s 500 models were sold in the UK last year. attitudes and expectations of cars. These This is expected to remain changes will only increase in the future. the same in 2009 even ‘People have become much more interthough the overall market ested in brands and design and here – as is depressed. But it will be the 500 has shown – the fact we are an further boosted by the Italian brand is a terrific advantage.’ addition of 3,000 Qubo sales are expected to hit 1,000 convertibles when units this year. ‘Fuel figures are particularly the new 500C impressive,’ Humberstone stressed. arrives. ‘dealers can point out to customers All of which 62.8mpg for the 1.3-litre Multijet turbodiemakes Fiat one sel which means the car can cover up to 625 of the best miles on a single 45-litre tank of fuel. The franchises of future is with Fiat!’ the moment rICHArd GIBBoN and explains why

Fiat Group makes best ever profit in 2008 FIAT Group has reported that 2008 was its most profitable year EVER – despite the credit crunch! The group made a trading profit up four per cent on a total revenue of nearly 60bn Euros – itself up 1.5 per cent. Fiat Group incorporates many different companies. The automobile side sold 2,152,500 cars, to achieve a trading profit of 691m Euros. Sales up by nearly a third in France played a big part in this. Luxury car arm Maserati sold 8,759 cars, for a new record revenue of 825m Euros. Supercar division Ferrari provided further proof that it had escaped the recession, by delivering 6,527 cars and raising revenue by more than 15

per cent. The supercar maker brought in 1,921m Euros! All this cash means Fiat is very well placed to capitalise on its recent announcement to partner up with lossmaking American giant Chrysler.

691,000,000

...profit Fiat Group’s car arm made in Euros last year

It’s been a real month of coups for Fiat. It pulled off a sensation in January by buying up the front and back pages of the Daily Express newspaper. In what is believed to be a first for a national rag, Fiat paid to wrap news of the 500’s birthday around the paper the day after Obama’s inaguration.

Net gains Does your site reﬂect the fact more buyers are going online?

was very interested to hear about Car Dealer’s exclusive survey this month – particularly the bit about where customers will go to research their next car. This almost exactly ties in with findings from the CAP Gemini survey, which states that four out of five car buyers will use the internet for research. Now, does this reﬂect what you do? Because, if that’s what your customers want, it’s what you need to be doing. And I know what some may say. Five out of 10 customers at my dealership use the local press – that’s way more than the Car Dealer survey says. And yes, I’ll respond, that may well be true. But is that because ‘Car Dealer’s others can’t find you on the web? What’s more, if survey ties in they can’t find you, how with CAP’s which many can’t find you? For anyone who says their found four out of customers don’t use the five car buyers internet, I’d say… hmm… well, put it this way. If use the internet you’re selling virtually any car, your customers DO use for research.’ the internet. Indeed, if you’re selling anything remotely unusual, then there’s even more likelihood that they’ll be using the net. One Mercedes dealer in Hertfordshire I know of sold a very special used SL to a guy… from Aberdeen! That’s the thing with used cars – every one is unique. Customers will therefore be willing to travel. But if they can’t find the car in the first place, what chance do you stand? Remember, local press is just that. Local. Encouragingly, I’ve had lots of dealers telling me that, contrary to perceptions, they’ve had a good January. Particularly those selling ‘on money’ cars – smaller, efficient, tax-friendly models. This therefore begs the question: if you haven’t had a good month, why is it? Could it be you’re doing something that’s not right? Maybe this is where you spend your money? Of course, this leads on to a further point I made a few months ago: you need to maintain marketing spends. Once you start cutting back, then it becomes a vicious circle. Customers are less aware of you, less money comes in, you have to cut back accordingly… so it goes on. It’s therefore vital you keep marketing going. In short, stop assuming. You may not believe me when I say that focusing more on the web attracts more customers. So, give it a go, and start asking them. Believe me, instead, when I say you will be surprised…

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

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Management buy-out at London Volvo sites

Henstock Auction stations Why auctions should be a part of your firm’s plans

f your business is buying and selling used cars then auctions should be part of your business. And by auction, I mean traditional, physical auctions where buyers and sellers meet head on to set the value of used vehicles. Even in the midst of what many see as the worst economic downturn in generations, auction halls remain busy and active. Since the turn of the year, the halls have been particularly hectic, with sold volumes and values rising. There are many new buyers attending for the first time and others, who have come back as other sources have proved less profitable. As a case in point, I spoke to an experienced dealer at BCA Measham last week, ‘In a competitive on his first visit to a ‘proper’ auction for some business arena 12 months. He told me he you need to had been sourcing stock online, but felt increasingly make the most disconnected from the of every tool market reality, particularly as prices had moved in the box – so quickly during recent especially the months – both down and up. While bidding from his useful ones.’ laptop was convenient, in the auction hall he could see other dealers and how they were reacting. Online, he added, just didn’t give him the feel for the market. Of course, convenience is one thing, but market knowledge is also important. I’d argue you get a better idea of the market place by just attending one physical auction than logging on to a dozen exclusively online sales. This is because auctions can offer up to 1,000 vehicles ready to be sold to the best bidder on the day. It’s the biggest wholesale source with the widest range of makes and models, ages, mileages and price bands. And this isn’t just a special event, but is available every day of the working week. And if you can’t get to the auction, then Live Online provides an alternative half-way house. You bid online from the comfort of your office but you are bidding in real-time against the auction hall. You hear the auctioneer, you see the car, you gauge the interest – and of course you read the detailed catalogue listings and inspection reports. It’s the next best thing to being there. My personal view is that if you are not using auctions, you are missing profit opportunities. And in a competitive business arena you need to make the most of every tool in the box… particularly the useful ones!

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

Three former HR Owen sites bought out as Volvo Cars London is formed at Marylebone, Colindale and Chiswick REGENT Automotive has bought three of HR Owen’s London Volvo dealerships in a management buy-out. The Marylebone, Colindale and Chiswick sites will now trade under the Volvo Cars London name. It is the latest move in HR Owen’s commitment to dispose of all its non-specialist brands. Regent MD Tracey Perry lead the buy-out with funding from Barclays Bank and Ford Financial. It secures the jobs of 110 people across the three sites, which will turn over £40m in 2009. The deal includes Volvo’s UK flagship site in Chiswick – pictured above – which opened in October and impressed Car Dealer when we attended the launch. Also joining Perry, who’s had a 26-year career with Volvo, are aftersales director

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DAIHATSU has launched a bespoke motor trade insurance policy for its dealer network. The new scheme has proven a success in a trial period where annual savings of up to 25 per cent were projected. ‘We are pleased to be able to offer this initiative in these difficult times,’ said a spokesman.

Frank Fisher, plus fellow directors Barry Green and David Jaggar. ‘This is a fantastic operation with excellent potential, a loyal team of staff and a great brand in Volvo,’ said Perry. ‘The four directors involved also bring a wealth of industry expertise to this venture, and with Volvo sales bucking national trends and increasing in the UK, this is a great opportunity for Volvo Cars London to flourish.’ Last year, Volvo sales increased by almost 11 per cent, in a market where many makers have suffered. So, what sets the new team apart? ‘We have experience, knowledge and enthusiasm of both the brand and the market place,’ said Perry. ‘We are really excited about applying this in our own way.’ RICHARD AUCOCK

Motorpoint’s record sales MOTORPOINT’S stunning 2008 success has rolled over into 2009 – with record results. In one week in January, the car supermarket sold 786 cars – to put that into context, it’s a car every 5.49 MINUTES. The previous record was 758 cars in a week – and that was also set in January! These figures mean Motorpoint is well on course to sell 35,000 vehicles in 2009. It has already shifted more than 3,000 in January, and recorded website traffic up 63 per cent. MD David Shelton said: ‘January is traditionally a quiet time for dealers. But this month has been anything but for us. Our sales clearly show that if you offer the right product at the right price, there will always be a market for you.’

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Mandy throws car firms £2.3bn lifeline As the economic woe deepens, the government steps in to help struggling manufacturers

Rapp Marketing Public relations help is on offer for dealers using the Motors.co.uk ad network

verything we know tells us that, in the coming months, buyers will be more cautious than ever. They’ll be researching purchases carefully, doing even more looking before they leap. With eight out of 10 people searching online for their next car, Motors.co.uk has refined its car search to help consumers find exactly what they are looking for. With a few clicks, buyers can see all the cars they’re interested in, and none of the ones they’re not. Advertising on portals like Motors.co.uk will help to maximise your online potential. Your stock will automatically be listed on the Motors.co.uk network which consists of more than 100 sites including Yahoo! Cars, Carsource.co.uk, Carsby mail.co.uk, Teletextcars. co.uk and Fifthgear.co.uk. You know that we can advertise your latest deals, but how else can we promote your showroom when budgets are stretched and you can’t fund a huge advertising burst? Well, how about a sustained public relations campaign? It will certainly help and cost you next to nothing. It doesn’t require the costly help of professionals, or lots of time-consuming work and effort. With a little planning and effort, it can reap huge rewards. And, for Motors.co.uk customers, the task is made simple. If you sign up to advertise your stock you will receive a free service to make public relations easy. Send us details of the event or business activity that you’d like to see publicised. Whether it’s a promotional event, sales success, charity fund-raiser or long service award – whatever you need to shout about. Tell us what is going on and we will write a press release for you to issue to your local newspaper, local radio and TV station, trade publication or online news site. Meanwhile, we’ll publish it on Motors.co.uk, and on our dedicated press releases pages which are viewed by thousands of used-car buyers each day. Our service will make things far easier and, if you’re a Motors.co.uk advertiser, it’s absolutely free!

‘It doesn’t require the costly help of professionals, and with a little time and effort it can reap huge rewards.’

THE bail-out we all knew was coming has arrived with the government offering car firms £2.3bn in aid. Business secretary Lord Mandelson has outlined a range of packages that will help struggling carmakers. Part of the deal will see £1.3bn worth of loans unlocked from Europe which will go towards helping manufacturers and suppliers to the industry. A further £1bn in loans has also been guaranteed, but there are green caveats to the cash. Unveiling the plan, Lord Mandelson told the House of Lords that the UK car industry was ‘vital’ and that it had huge bearing on regional economies across Britain. The moves come amid a host of cuts at factories, with staff being laid off and tools downed for prolonged periods. The problem is demand has dried up just as credit has evaporated, backing makers into a corner. There are a number of green clauses that makers have to meet before they get their hands on the cash, such as investing in ecofriendly technology, but the moves have

Business secretary Peter Mandelson on a recent visit to Ford Bridgend Engine Plant been generally welcomed by the industry. ‘This is an important announcement that recognises the strategic contribution of the motor industry and follows action in other EU member states, the US and Japan,’ said SMMT chief executive Paul Everitt. Sue Robinson, director of the Retail Motor Industry Federation, added: ‘Consumer confidence in car-buying could receive a boost as a result of the government’s public show of support for the motor industry. ‘This investment in the industry should send the right message to consumers, endorsing the availability of credit and the excellent deals in the showroom.’

Credit the key to getting cars shifted again GETTING credit for buyers is a vital step the government must take to help the industry, ministers have been told. At a summit between industry leaders and the government last month, ministers were told tens of thousands of jobs are at risk if more help isn’t given to the car industry. ‘It was a serious and constructive meeting underlining the strategic importance of the UK motor industry,’ SMMT chief Paul Everitt said.

‘As an industry, we emphasised the lack of specific proposals to stimulate demand in the market and ease consumer credit. ‘We acknowledged the positive steps set out in the business secretary’s statement and have agreed to work together to ensure that companies of all sizes are able to access the various government support schemes.’ Stay up to date on the crisis every day at CarDealerMag.co.uk

Porsche adds new 911 GT3 to its awesome line up THIS is the new 911 GT3 that will debut at the Geneva motor show in March. Power is up 20bhp on its predecessor to 435bhp and it can hit 99mph in just 8.2 seconds! Top speed is an incredible 194mph. Costing £81,914, deliveries will begin in the autumn.

Who is Helen Rapp? Helen is UK product manager for Motors.co.uk. For details of the services Motors.co.uk can offer motor traders you can call 0845 265 5502

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New trade portal launch Autotradebids kicks off with star-studded launch in Manchester CoroNATIoN Street glamour starlet Michelle Keegan has helped get Autotradebids.co.uk off to a star-studded start. Stunning Keegan, who plays david Platt’s girlfriend Tina in the hit soap, was the star of an event that went off with a bang! The online vehicle auction site held a celeb-packed launch bash at Manchester’s top radisson Edwardian Hotel – masterminded by Autotradebid founder Paul Fisher. Fisher already has a celebrity client list of stars for his bespoke SUV businesses – and this success has led him to be tipped as the next ‘face’ of young business in the North West. The pioneer, who also runs vehicle leasing and fuel economy modification companies, boasts

property investments to his name, too. And now Autotradebids. ‘I’ve no doubt our system is the best,’ Fisher told us. ‘We spent months carrying out competition analysis – we’ve included everything a dealer could want, in one place. ‘The motor trade, like many other businesses, has to cut its operating costs without cutting out quality, choice or value. Autotradebids is an effective tool to assist them in this.’ Fisher says the site, which launches

this month, is the UK’s first ‘multifunction dealer support and trade resource’. In short, it’s somewhere dealers can advertise and buy cars, goods and services. The core is the vehicle listings section, which is where dealers manage cars they buy and sell. For every used car listing displayed, there’s a comprehensive list of features telling you everything about it before you bid. The bidding process is ‘sealed’, ensuring both buyers and sellers get a mutually agreeable deal. It’s great for management, too. You can set up 10 salesmen on the system, and monitor all their activities. ‘As conventional remarketing businesses such as auction sites struggle to move stock, we are having to employ more staff,’ said Fisher. It’s exciting times for the young man – who was blown away by turnout on the launch night. ‘The appeal of meeting Michelle was no doubt a help for the excellent turnout,’ added Fisher.

Honda halts work for four months HONDA has halted vehicle production at its Swindon factory for four months. The global collapse has led the manufacturer to call time at its Swindon plant just weeks after pulling out of F1. The shut down, from February to May, means the carmaker will have closed the plant for four months in total.

Corsa top choice VAUXHALL’S Corsa is the people’s choice for top supermini, reports a car review website. The Corsa received 35 per cent of votes by readers of roadtestreports.co.uk. Second place was the Honda Jazz and the Ford Fiesta in third.

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Harrison Specialist Automotive Finance

Knowledge is vital to gaining buyer confidence

e are now – according to official statistics – in a recession. But those statistics merely confirm what our industry already knows. Business and consumer confidence has fallen. New car demand is forecast to be at 1.78m units for 2009, down 16.5 per cent on 2008. It is all too easy to focus on the negatives. But we must look at the positives. Last month I talked about how the downturn has led to more consumers turning to their local dealership for finance. I recently attended a meeting between lenders and retailers, and although everyone acknowledged ‘Professionalism the tough market condiis the key if tions, the group believed consumers are that the new car forecast represented 1.78m finance to have the opportunities. That’s the confidence to spirit! I believe the way finance part with their is presented to consumers hard-earned is very important. Professionalism is key if cash.’ consumers are to have the confidence to part with their hard-earned cash. Consumers need to understand why a product has been recommended to them by dealership staff and its specific benefits. Specialist Automotive Finance (SAF) is the FLA’s initiative to raise standards on the sale of finance. Dealership staff can register for the free-of-charge competence test at SpecialistAutomotiveFinance.org. uk. It’s convenient and takes a maximum of 40 minutes to complete. If you pass the test, you get a certificate to recognise your competence. The FLA is working with dealers to integrate SAF into their training programmes and there’s lots of SAF reference material that helps dealerships prepare for the test. The material describes, in detail, the features and benefits of the most popular products and the surrounding regulation. Anyone with internet access can download the material, free-of-charge, via the SAF website. Whether you are new to the industry or an experienced hand, we all need the occasional refresher course to remain abreast of the latest information. Our material provides just this and I recommend that you check it out.

Who is Paul Harrison? Paul is head of motor finance at the FLA. Find out more at www.specialistautomotive finance.org.uk or call 020 7420 9613.

Launch boss: Golf has dealers fired up VW’s head of planning tells Car Dealer that retailers are desperate for new model THE launch of the new VW Golf has dealers ‘fired up like nothing before’ says the man behind the UK launch. Adam Chamberlain, head of planning for the entire VW group in Britain, gave an exclusive interview to Car Dealer at the launch of the vital new model which has just gone on sale. ‘We are delighted with the response to this newcomer,’ he said. ‘It is bigger, better equipped, more fuel efficient, quieter, offers added value and will be offered on finance deals for less than £200 a month.’ There are currently 222 VW dealers in Britain, with no open points – and these outlets plan to shift 50,000 variants of the new Golf by the end of the year. Chamberlain, pictured above, expects that figure to rise in 2010 as more models join the fray, but much will depend on economic conditions. ‘The Golf is iconic and has always done well when the market is flat,’ he said. ‘This shows its endearing appeal and, indeed, in the last two years we have enjoyed record penetration with a 13.5 per cent segment share.’ Last year the Mark 5 Golf achieved 62,800 registrations. In 2007 the figure was as high as 67,000 cars. Chamberlain believes a maximum five-star Euro NCAP rating plus seven airbags

will ‘greatly help the cause’ as will a knee airbag fitted on a Volkswagen for the first time as standard. ‘The feedback we have had from dealers has been so positive,’ said Chamberlain. ‘The seven-speed DSG automatic gearbox has proved particularly popular as has the economy which can be as high as 47.1mpg on the combined cycle.’ Chamberlain, who is 35, has been with VW for 13 years and has worked for SEAT and Audi. He lives in Oxford and is married with two children. Meanwhile, CAP has added to the good news for the new Mk6 model. Martin Ward, price assessor, told Car Dealer that the 1.4-litre TSI three-door should achieve a 41 per cent down-the-line value after three years and 60,000 miles with the 2-litre TDI SE as high as 45 per cent over the same period. Richard Gibbon New Golf tested, p29 Sales Legends: Golf, p36

Mag lays into dealers after undercover research CAR dealers have a bad reputation – and, according to Which? Car it is entirely justified. The shock findings are revealed in the consumer body’s latest issue, where it lays into motor traders. ‘Car dealers’ reputation for sharp practices could be justified,’ says the magazine. This followed an undercover investigation that discovered lots of bad examples. Some 12 out of 26 dealers made ‘dubious or vague claims’ and four of these could have broken Consumer Protection regulations. Which? even suspected some dealers of using ‘bait and switch’ tactics where a car is advertised despite traders knowing there is no stock with the aim of up-selling an alternative.

Other examples of bad practice were: • A Peugeot dealer saying he had a model that was advertised on its website. Later, the researcher was told the dealer didn’t have that model and was shown a different car.

12 in 26

...dealers made dubious or vague claims to Which?

• A Jeep dealer said an offer would finish at the end of the month despite the Jeep website saying it had months to run. Richard Headland, editor of the mag, said: ‘The ghost of Arthur Daley’s alive and kicking, unfortunately. Dealers have had time to get used to the rules, but too many let car buyers down.’

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big mike

Balls to the credit crunch, let’s talk crap cars instead W

ith the used car market as it is, I’m pretty sure you could all do with a little bit of light relief. So this month, instead of wittering on about the recession, lack of finance options or why the media’s barely concealed delight at the next round of job losses is really starting to wind me up (these are real people, guys, with real families and mortgages, not just statistics to boost your viewing figures), I’m going to talk about cars. Or more specifically, crap cars, and how they simply don’t exist anymore. Back in the 1970s, I worked as a sales manager for a Midlands-based Fiat, Lancia and Alfa Romeo dealer. For those of you well-versed in the anomalies of Seventies Italian tin, you’ll know that selling such cars was as easy as convincing political commentators that George W Bush was the best-ever US president. Welding up corroded jacking points was pretty much part of the pre-delivery inspection. After my spell with Italian metal, or whatever material it was that the Italians tried in vain to hold together with paint and plastic trim, I worked for British Leyland as it underwent its transmogrification to AustinRover (‘Now We’re Motoring’… remember?), followed by a stint with Lada, that led to a job flogging pre-VW Group Skodas at the height of the Blackpool comedians’ Skoda joke heyday. So, for a good 15 years of my career, I spent time knowing and learning to love automotive rubbish. If you’re a good salesman you’ll rapidly start to love the things you sell regardless of how rubbish they are. This is largely because, for the entire time my family was growing up, it was Lancia Betas and Morris Itals that paid my mortgage. Believe in what you sell, and it will sell itself. I know I must sound like The Office character David Brent, but it really is true. And the good thing about crap cars is that you can always promote their good points, as the rest of the

Crap cars – like the ridiculous Maestro Turbo – simply don’t exist anymore, says Big Mike

‘By the time they’d handed over the foldies they were past caring that by its third birthday the Sud would have more patches in its undercarriage than a dog show.’

car makes them look, well, really good. With an Alfa or a Lancia it was quite easy. The customer came into the showroom armed with the Daily Mirror’s latest rant about build quality, knowing it would hook them a discount. I’d tell them that this meant they’d be getting a cracking, thoroughbred car for next to nothing and take them out for a drive. A quick spin around the block would convince them that an Alfasud, for all its rorty exhaust note and cat-like handling, was a far better proposition than their clunky old Hillman Avenger, with its live rear axle and pushrod engine, and by the time they’d handed over the foldies they were past caring that by its third birthday the Sud’s undercarriage would feature more patches than a small-town dog show. With such automotive delights as the Austin Maestro, it was a little trickier. The phrase ‘Volkswagen Golf gearbox’ made a regular departure from my lips in reference to the HLE version, but talking dashboard aside, the Maestro’s single biggest selling point was its bendy ignition key. You could slip this into your pocket without fear of it becoming a threat to procreation. For anyone fortunate or unfortunate enough to have testicles (this largely depends on your birth gender I suppose, or possibly how

big they are) it really was a breakthrough, and one that meant that you might suffer the indignity of arriving at your next sales meeting in an Elastoplast beige Maestro, but at least you didn’t have to politely sit through it with a car key trying to puncture your left gonad. As for the Lada Riva, well its one saving grace was that, agricultural as it was to drive, it was based on a 1960s Fiat and that meant it was quite pretty. I know it’s easy to laugh at one now, but tell me honestly that a Lada Riva isn’t well proportioned. A bonnet 10 per cent longer than the bootlid and a neat cabin with a large glass area are still craved by car designers today. Which brings me neatly to today’s cars. There’s nothing fundamentally wrong with a Kia Cerato or a Toyota Auris, but tell me the one thing that each of them has that any other car doesn’t. You can’t, can you? It’s because they’re not crap, that’s why, and for that reason you’ll struggle to find a unique selling point. And as good old David Brent would tell you, everything needs a USP, otherwise nobody would buy one at all. Maestro Turbo, anyone? Who is Big Mike? Well, that would be telling. What we do know is he’s had 30 years in the car trade and picked up some seriously funny tales along the way.

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Ford KA 24 | CarDealerMag.co.uk

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It’s the small car with a huge responsibility, but is the new Ford Ka the saviour Blue Oval dealers need to get them through these tough times? Richard Aucock finds out

‘I

t’s ‘car’ now, not ‘kay-aye’ or ‘ka’,’ said one dealer to us, as he took delivery of his very first new baby Ford. ‘However it’s pronounced, though, I’m delighted to see it. This couldn’t have been better timed.’ Such is the excitement in the Ford dealer network over the brand-new, second-generation Ka. The old one lasted 12 years – too long, said our dealer friend, even though it still shifted incredibly well right up until the end. ‘It’s the style that it sold on.’ This model aims to replicate that, but bring the recipe bang up-todate. It’s got lots of airbags, advanced electric gadgets, a brand-new

petrol engine and, for the first time, a turbo diesel. ‘The premium here is only £700, too’, said our man. ‘On the Fiat 500, it’s £1,500! A real, real opportunity for us.’ Why does he reference the Fiat? Because it’s actually Fiat that builds the new Ka for Ford, on a platform also used by the 500 and Panda. Fear not, no external panels are shared, and it remains unmistakably ‘Ka’. Sure, fans of the old one may already be aghast at the slightly generalised looks – this is more modern Ford than second gen Ka – but it’s sharp, sophisticated, and decidedly premium in appearance. It is the exact same 3.62m length as the old Ka, but it’s 10cm taller. >

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forecourt Ford Ka 1.2 Zetec Price: £9,295 Engine: 1.2-litre, petrol Power: 68bhp 0-60mph: 13.1s Max: 99mph Ins: Group 2

Inside, the links with the Fiat are clearer. Basic dash architecture and layout is very similar. However, the Ford has totally bespoke switchgear and, for enhanced showroom appeal, far better quality of materials than before. The gearlever is high-set and the driving position, atop lofty seats, commanding. It feels like a much more mature, grown up car, rather than a miniaturised city runabout. It’s also spacious – four adults should fit relatively contently, for short periods at least. At 224 litres, the boot is 20 per cent bigger – and, for the first time, it even has a proper glovebox! There are four trim levels: Studio, Style, Style+ (which adds air con and Quickclear front windscreen), and Zetec. Standard kit is youth orientated – six-speaker stereo, USB port – and fair rather than generous. But the quality of materials and the switchgear is so much better than before. Dealers will also have three ‘Individual’ branded styling packages to up-sell – Grand Prix, Digital Art, and Tattoo – with coloured grill surrounds, mirror caps, decals, and matching interior features. All are rather unique. Under the bonnet, there’s either a 68bhp 1.2-litre petrol, or a 74bhp 1.3-litre turbo diesel. These are both superb units, each returning sub-

120g/km CO2 and notable economy. The diesel is especially stunning from a planetsaving perspective. But unless customers’ daily commute contains a lot of heavy uphill gradients, where its extra torque comes in handy, we’d take the petrol. It’s much zingier-sounding and enthusiastic. While the diesel has welcome extra shove, it is also rather noisy. On the road, Ford has done a fantastic job of redressing the Fiat 500’s chassis shortcomings. The Ka has much better bump absorption, particularly at speed, and fitting a rear anti-roll bar has enabled Ford’s engineers to soften the springs by 30 per cent and retune the dampers accordingly. Comfort levels, grip, and sheer involvement all benefit. Changes to the steering geometry also give the Ka more linear responses than the 500. It isn’t as communicative as its own predecessor, but for a

city car it’s brilliantly entertaining. Shame the safety kit isn’t better. Only two airbags are fitted as standard, which looks incredibly poor next to the Fiat 500. That car includes seven – somewhat negating the Ka’s slim price advantage. But it’s very economical – just the thing our dealer man wanted. An ECOnetic version is coming, but in the meantime the diesel returns 67.3mpg and emits just 112g/km CO2, the petrol 55.4mpg and 119g/km – completely thrashing the old Ka. Right car, right time? You bet. No, it’s not cheap – at £8,995 without air con, the Ka has been moved upmarket – but the package delivers on the road and further enhances Ford’s green car portfolio. So a winner, then? The answer is, it simply has to be. Whichever way you say the name. [CD]

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forecourt VW Golf £14,372

Same Difference? T he Golf is a top 10 seller in the UK. What’s more, it is also Europe’s best selling car. So you could say the launch of an all-new one is vital. But how many are going to notice? A common criticism with any new Golf is that it looks too much like its predecessor. But, even by these standards of gradual evolution, Volkswagen really has, with the Mk6, created a near-total clone of the Mk5. Vee dub has previous here. In 1986, we criticised the Mk2 for looking too much like the original. Motorists responded by… buying it in droves. So it’s previous, then – with good form. Part of the likeness is because this new Golf isn’t actually all new. The company has deemed the underpinnings of the old car more than good enough to see service in this one, too. The new model therefore has a new exterior (yes, trust us, it does!), plus a seriously enhanced interior and other high-tech features. But, as it’s also cheaper to build, it will make more money, for both VW and its dealers. Perfect! Needless to say, there’s a large range of engines. These have a core of sensible 1.4-litre and 1.6-litre petrols. The bigger unit is preferable, even if its £900 premium is steep. Also on offer is Volkswagen’s punchy 1.4-litre TSI – in 122bhp turbo guise, and a 160bhp twincharger version. But, being a Golf, it’s diesels that are key. New units are on the way here – a 1.6-litre TdI sounds promising to us, particularly as it offers excellent fuel economy. But, for now, it’s the familiar old 2.0-litre TdI, with 110bhp or 140bhp. on the road, that key 1.6-litre is torquey and powerful enough for most buyers. It has a very slick gearbox too, while the steering is accurate and well weighted for precision on twisty roads.

It might look similar to the old one, but then if it ain’t broke don’t fix it, eh, Volkswagen? We try the new Golf

Eco-conscious buyers will be pleased, if not overwhelmed, by the 39.8mpg average, but disappointed by the 166g/km Co2 figure. Choosing the dSG semi-auto sees this drop below the key 160g/km barrier. The 2.0-litre TdI claims 57mpg. But will that offset the £1,700 premium over the 1.6-litre petrol in buyer’s eyes? roll on this summer’s more fuel efficient 1.6-litre TdI. Suspension is a bit of a compromise. It’s comfortable enough, but it rolls a fair bit, meaning a Ford Focus is better in this respect. And the ride? Again, decent, but not quite up to the premium levels suggested by the rest of the car. Surprisingly, it’s the same for the interior. Yes, it’s all very solid, but it lacks flourishes to set it apart. Workmanlike best describes it. However, buyers jumping into it from the previous model will be much more aware of the changes. Seats, for example, are superb, even in the most basic S model. There’s great sideways support and the usual good Golf compromise between comfortable padding and firmness. Shame the unsupportive rear seats don’t follow suit,

although there’s lots of space back there. Unusually, Volkswagen is able to launch the Golf with its Euro NCAP test score in place. Needless to say, it’s picked up a full five stars – with standard stability control, plus seven airbags, including one for the driver’s knee. Pity VW can’t be similarly generous with the AUX-in socket, so buyers can plug in MP3 players. They’ll be disappointed to see it costs £83! S spec has air con as standard, but the £850 dearer SE is more on the money, with USB connectivity, alloys, a better stereo, cruise control and more. The extra seems well worth it. Needless to say, no Golf is cheap. It also doesn’t stand out, neither from the crowd, nor the one that went before it. However, it’s still a tempting model. It’s nicer inside, has some fine engines and is admirably quiet and comfortable. The 1.6 S version never remotely leaves you feeling short-changed, either in terms of performance or equipment. Worth the premium? Well, millions of buyers across Europe think so. And who are we to doubt them? Sales Legends: MK1 Golf, p36

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MiTo

Alfa Romeo’s clever new MiTo has its sights firmly trained on the MINI, reports CJ Hubbard

NA. Clever stuff. Genetic coding that relates one thing to another. Father to son, mother to daughter. Alfa romeo 8C supercar to Alfa romeo MiTo supermini… No, seriously. From surface-mounted headlights to circular LEd taillights, via slender glasshouse and curvaceous hips, this compact hatchback really does capture the spirit of its high-class, high-price Competizione cousin. The interior has suitable wow factor, too – if also some cheapfeeling plastics. As Alfa romeo’s debutant showing in the competitive supermini segment, the MiTo makes one hell of a first impression. But dNA is doubly important to this darling. You can just imagine the meeting where someone figured out those crucial characters could also stand for dynamic, Normal and All-weather. And therefore represent the three-setting adaptive chassis package that comes standard on every MiTo. It must have been high-fives all round. Anyway, clearly Alfa is gunning for MINI. Hard. The MiTo’s pricing starts at just £10,745 – £1,600 less than an entry-level MINI one. That cash gets Turismo trim and a 95bhp 1.4-litre 16v petrol – the only engine in the line-up that isn’t turbocharged. However, we tried the fully-loaded Veloce and the range topping 155bhp 1.4-litre turbo petrol and 120bhp 1.6-litre turbodiesel. A 90bhp diesel and 122bhp petrol are your other choices, plus a mid-range Lusso equipment level. The 1.6 turbodiesel needs dynamic mode. In Normal, it’s sluggish – Alfa says relaxed, we say apathetic; All-weather is understandably even worse – and the steering’s strangely spongy.

Flip the switch, though, and you’ve got a proper little performance car. The dampers stiffen, the steering gains welcome weight, and the MiTo surges forward. The more aggressive throttle map meaning you finally feel all 320Nm of torque, and 0-62mph in 9.9 seconds seems pessimistic. However, if you really want to be entertained, take the top dog turbo petrol. It’s much livelier immediately – the difference between Normal and dynamic is far less pronounced – and the engine is bursting with zingy, revvy character,

complete with low-key whooshing noises as the turbo spools on the boost. 0-62mph? Eight seconds dead, and a top speed of 134mph. The petrol is also lighter on its feet – the engine weighs less, and the MiTo responds with ever-so-slightly sharper reactions. However, both cover ground with confidence, and regardless of dNA setting the MiTo’s body control is beautifully tight. Impressively, the firmness here is only really uncomfortable on the very worst of British Tarmac – but the MiTo does thump a little over urban surface intrusions. So, we like. Actually, we like a lot. The entire concept of an Italian car with such complex electronics remains eyebrow raising from a reliability standpoint, but with such a complete package of value, performance, and style, the MiTo is easily MINI’s biggest challenger yet. Cult Cars: Alfa Romeo 8C, p34

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Porsche Cayman NEW

It may look unchanged from its predecessor, but Porsche has been to work under the Cayman’s skin, plus there’s a host of new kit, reports Richard Aucock

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hat’s the best car Porsche makes? The 911, surely? Well, look at where the smart money goes, and the Cayman is definitely in with a shout. It has always been great to drive, for thousands less than its famed icon – and now, freshly face-lifted, with direct injection and the 911’s PDK gearbox, it’s even more compelling. In typical Porsche style, you’ll be hard pressed to spot the changes. Outside, the detail mods are minimal in the extreme, pleasing the car-spotting aesthete rather than the gung-ho sort who wants everything to be ‘new’. Instead, Porsche has spent all its time drilling improvements into the bits beneath. As a range, it’s more powerful, economical and less polluting. The Cayman S gets direct fuel injection to further enhance these attributes too. Also available is Porsche’s mesmerising dual-clutch PDK gearbox. It’s like a VW DSG unit, with seven speeds and near-instantaneous changes. With any Porsche, you never stand around for too long looking at it. Time for that later. Instead, drop down into the superb seat (of which dealers can up-sell myriad options). You’ll briefly note that it’s brilliantly practical – strict two-seater it may be, but there’s a combined total of 410 litres of luggage room in the front and rear compartments, which on paper is more boot space than a Ford Focus! Quality is also top notch, but options are very expensive. The important bit is firing up that that mid-mounted flatsix engine and giving it full beans. The basic model gets a capacity bump from 2.7 to 2.9 litres and a consequent 20bhp boost to 265bhp. Now with a standard six-speed gearbox, 0-62mph is 5.8 seconds (down from 6.1) and 5.7 seconds with PDK – a whole 1.3 seconds faster than the old Tiptronic S car. The S stays at 3.4 litres, direct-injection and various other tweaks unleashing another 25bhp to give 320bhp and slash 0-62 from 5.4 seconds to 5.2. With PDK it’s even more impressive, the outgoing car’s 6.1-second sprint falling to 5.1 seconds, with 4.9 seconds possible using the launch control mode offered with the optional Sports Chrono package. That’s just 0.4 seconds slower than a similarly equipped 911 and the Cayman S PDK feels every bit as fast as the numbers suggest. In auto mode, PDK is almost too slick to be sporty, manual override is the answer with the optional Sports Plus slamming shifts home with a thump. As for handling, there wasn’t much wrong with it, so Porsche has wisely confined itself to detail changes for the chassis and suspension. Optional PASM suspension adds about £1,000 to the price, but offers two distinct settings via computer controlled adjustable dampers. Riding 10mm lower than the standard set up, in standard mode PASM is relatively plush, the Cayman riding with more composure than the 911 thanks to its centred weight distribution. Sport mode, however, is only really suitable for smoother Tarmac and when you’re really pressing on. There’s also now an optional limited-slip differential, which racks up the aggression another notch and offers keen drivers extra throttle adjustability and improved traction. But, as it stands, the £44k Cayman S’s sublimely weighted steering, brilliant brakes and inherent balance make it a delight to drive at any speed. It’s even more green. All models now slip under the 225g/km threshold, with big savings on VED and company car tax as a result. PDK has the most dramatic effect, when compared against the old Tiptronic S auto option. Previously 28mpg on the Cayman, PDK improves this to 31mpg, the S going from 25.7 to 30.1mpg. The basic formula remains as appealing as ever. Beneath those slightly lumpy proportions lurks quite simply one of the finest driver’s cars around. Indeed, the Cayman is almost too good, presenting Porsche with a tricky conundrum if it’s to stop it pinching sales from its £30k-dearer big brother. But, with 911 buyers apparently unwilling to trade down, we’re sure dealers will find it a welcome problem to have… [CD]

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cult cars

ALFA ROMEO 8C

lfa romeo stands at international motor shows are famous for one thing. The girls. Seriously, they are almost entirely staffed by supermodels. It is common for some journos to head straight over there, camera in hand (yes, we said camera) to get shots of ‘the latest model’. Ugh. It’s an ugly site at times, surrounding all this beauty. However, back in 2003, once the crowds of nylon jackets parted, onlookers were left with two objects of beauty – a supermodel... sitting in a supermodel. Frankfurt played host to one of the most beautiful cars in the world. The Alfa 8C Competizione. Which, four years later, made production virtually unchanged. This car is an absolute stunner, and no mistake. Is it any wonder Alfa designers were so heavily influenced by it when designing the new MINI-challenging MiTo? The sensuous curves are drawn in a delicate, yet sensuous, way that few thought was still possible on modern cars. It’s just gorgeous. Look at that smoothly rounded nose, and the flowing sides curving gently round inch-perfect hips. Can you believe it really is a production car? one of 500, which potentially could be one of the 41 UK-bound cars that could be exposed to the drizzle of a grim Croydon after-

found in the Maserati. With 450bhp at a wailing 7,000rpm, it’s not short of a horse or two – 62mph arrives in 4.2 seconds, and the top speed Price: £140,000 of this Alfa romeo is 181mph. Yes, 181mph. or, Engine: 4.7-litre, V8 rather, not. Apparently, the chief engineer said Power: 450bhp, 480Nm it would go even faster than that… 0-60mph: 4.2s A six-speed F1-style gearbox controls all this, Max: 181mph Now finance one with Bridford: with a limited-slip differential supplying the one: £42,000 deposit, 24 x £675 plus final payment* requisite power-oversteer sideways action. Two: £20,000 deposit, 48 x £1,735 plus final payment* Why anyone would choose black or yellow, instead of the other colour – Competizione noon. No, we can’t either. Yet the full carbon red – is beyond us. This is the hue that’s also fibre bodyshell really is there for the taking, if gracing all those MiTos you’re seeing in the ads you’ve got circa £140,000 spare. For this reason and on the launch circuit, and for good reason. alone, it’s a bona fide cult car. However, there’s Alfa can even paint other models in it. If, you far more to it than just that. Take what’s under- have (literally) thousands to spare. neath, for example. of more interest to us would be the Spider There, you have, no less, a Maserati Granversion – pictured, fittingly, on page three. Turismo platform, suitably tweaked for a car Basically a roofless version of the 8C, it’s a bearing the Competizione badge. This is a teeny bit slower, but almost as gorgeous, and name steeped in Mille Miglia history. James has two key benefits. You can hear more of Martin may not have finished, but Alfas with that delicious engine and it means Alfa’s this moniker did back in the 1950s. committed to selling another 500. Mind you, the 8C name goes even further And if you need any more proof that it’s a back – to the 1930s, and road, rally plus track cult car, know this: The maker famously ran ads racing stardom. 8C means eight cylinders. Back in the Sunday newspapers apologising for the then, it was a mammoth straight-eight. Today, fact the 8C was sold out – there are not many it’s a 4.7-litre V8 that’s built by Ferrari and also cars out there that you can say that about...

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sales legends Replacing the Beetle was no easy task, but dealers were delighted when they clapped eyes on the first-generation Golf. At last, they had a car that could compete with the best in the class...

Golf

VOLKSWAGEN T

he sixth-generation Golf is hitting dealer showrooms right now. Volkswagen’s most important car is ideally timed to help dealers through the gloom of the plunging new car market. Thing is, 35 years ago Volkswagen dealers were similarly doom-laden – and also looking to the Golf as the great white hope. Back then, the Golf was completely new – in so many ways. See, until then, Volkswagen dealers were one of the last air-cooled specialists around. The Beetle had dominated since the 1950s, and the business had built up around it. But, by the 1970s, it was sorely off the pace. Every attempt to replace it had failed. Models such as the K70 and NSU ro80 had left retailers reeling. Something revolutionary was needed. Vince Kinner is now VW’s head of fleet services. But, back then, he was also a VW employee – and was working in a dealer as the Golf was launched. Car dealer caught up with him to explain what a big step the Golf was for the company. ‘The culture back then was quite different,’ he revealed. ‘The air-cooled mindset was almost a

religion. Yet dealers were also pretty down in the dumps. The competition, such as Leyland, Hillman, Ford and GM had established a market, with cars like the Escort and Maxi. Alongside them, the Beetle was simply not as reliable or competitive.’ Kinner added in the 70s reliability was the thing everyone spoke about. ‘Cars were always compared to the datsun Sunny – that was the benchmark.’ Alongside this, the Beetle really struggled. other models also left dealers disillusioned. The K70 was ‘challenging’ and the ro80 unusual but had ‘no reliability’. Added to this were bigger things underway in the network itself. UK dealers were merging with Audi, selling them side by side. Staff had to be retrained, new premises invested in and substantial new equipment purchased. This change would broaden the two brand’s profile in time, but major league sales, including key fleet business, would have to wait until the 1980s. In the 70s, the network was still very much retail-focused. It was the Golf that heralded the change, from ‘Beetle’ VW into the giant we know today. A frontdrive model with water-cooled engines, clever

suspension and iconic Giugiaro design, it was an immediate hit. Sales were limited to less than 800 in 1974, the car’s launch year. But, by 1975, says Kinner, the model soon became the core of the UK dealer network. It shot up to retailing nearly 20,000 per year – talk about a comprehensive sea change! ‘Training for dealers was quite different,’ says Kinner. ‘dealers were already familiar with the engines, for example, due to the links to Audi. What was different was the big leap into modernity.’ Golfs were reliable from day one too. So much so that Volkswagen has since sold itself on the slogan ‘if only everything in life were as reliable…’ It may

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not have been the cheapest car on the market but, like today, it was probably the most solid and well made. Hence the sheer scale of that dealer sales ramp-up in less than a year. The car’s reputation was cemented, says Kinner, with the GTi. ‘This set the world alight,’ he says, and had a similar impact on the UK franchise. Here was Volkswagen leading the pack. And, since building its UK business around the core that is the Golf, it has not looked back. Now, of course, the sixth generation Golf is with us. Annual UK sales of 60,000 should be expected – and with an entire range of other cars to supplement it. Today, Volkswagen is a true global giant. And the car that helped it get there? Well, in our eyes, how could it be anything but an icon? rICHArd AUCoCK

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...in association with HPI

How about

survey

VAT?

The VAT rate may have tumbled from 17.5 per cent to 15, but an exclusive survey by Car Dealer and HPI reveals it has categorically failed to encourage motorists to buy. Richard Aucock reports on the results of our shock survey into car buyers’ plans for 2009

ar Dealer has quizzed thousands of new car buyers on their purchasing plans for 2009 – and the results make grim reading. The Zoomerang survey, which we ran in association with HPI, was sent to more than 10,000 people and is a fascinating insight into the minds of recession-hit Brits. It was well timed too – HPI director Daniel Burgess told us they were starting to see ‘small signs of increasing interest from buyers, who are being very cautious’. So, what did we discover? Well, you’ve already read on page 11 how our respondents categorically told us the VAT cut had not made them want to buy a new car. Other headline points include the fact that nearly a third said only job security would see them definitely buy a car in 2009. This is a clear indicator of the effect >

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survey the recession is having on people’s buying decisions. That’s why we also posed another key question – what WOULD make them buy a car? Unsurprisingly, nearly two in five confirmed that only lower prices would work. Car Dealer delved further. What sort of offers could dealers introduce to get people into showrooms? Value was again paramount here, with four in every five respondents saying bargain prices would draw them in. The most popular incentive was an unlikely one – ‘buy one, get one free!’ While this is unlikely, cheap finance was encouragingly just one point behind – significant in credit crunch Britain. ‘No-one will be surprised that price is the key driver,’ said Burgess. ‘It always was when times were good – now, more than ever, price will be the carrot. However, what dealers should be encouraged by is that if they can offer a competitive finance deal they could be attracting more business. Whilst BOGOFs are unlikely, if dealers can be innovative in deals, they could be in for a real winner.’ Speaking of the credit crunch, it is also the reason why 69 per cent of people say they are more likely to buy a used car in 2009, rather than a brand-new one. ‘With job losses hitting the headlines, many people are worried whether they will be in work this time next week, let alone this time next year,’ said Burgess. ‘2009 will see a tide of change in terms of forecourt stock, the attitudes of dealers and manufacturers alike – and a new breed of buyer, who will demand much more than ever before.’ Could this also be the reason why nearly half of respondents say their next car will be funded from personal savings? Either people have a lot of money, or they’re planning to trim back on their next car, by buying a cheaper used one. ‘It is surprising that nearly 50 per cent of people are considering using their own savings to finance their next purchase,’ admitted Burgess. ‘Especially given the uncertainty of how long we will be facing a recession.’ Bank loans will fund only 29 per cent of future car purchases. And dealer finance? Even less. Only one in five buyers say they will choose this route. It seems buyers still fully intend to have exactly the car of their dreams, too. 25 per cent say they will choose a prestige car next – the biggest proportion of all! In contrast, only five per cent will choose a ‘green’ model. There could, however, be a good reason for this. Burgess said: ‘In the used car arena, we have seen falling prices on higher ticket cars for many months now. Those consumers who are currently in a comfortable finance position are making the most of buying fantastic cars at fantastic prices.’ We also looked into research trends. Still advertising in local newspapers? You should review this right away, as only 11 per cent now use them. 45 per cent, however, use car magazines. And the internet? It’s a research tool for a staggering 86 per cent of car buyers! ‘Any dealer who isn’t currently advertising their stock online should do so today,’ said Burgess. ‘The importance of the web for buying and selling cars has risen dramatically over recent years, and shows no sign of abating.’ [CD]

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...in association with HPI

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VIBRANT NEW SALES CHANNEL REGULAR ONLINE LIVE AUCTIONS ONE STOP SHOP DE-FLEET, REFURBISHMENT, DISPOSALS REDUCED COSTS HIGH QUALITY CONSISTENT SERVICE REVOLUTIONISING THE WAY VENDORS PRESENT USED CARS TO MARKET Cost | Convenience | Credibility

To find out more, contact us at:

www.paragonremarketing.com No small print. No*. What you see is what you get!

CarDealerIss12.indd 42

6/2/09 09:45:54

feature

Paragon Going, going,

Following our insight into the launch of Paragon Remarketing’s online live auctions last month, Richard Aucock sat in on the very first sale to report, fly-on-the-wall style, on the day’s events

HE L T N CIA E FLY O P LS L A W

onths of work had gone into it. A decade in the military meant Md Peter davies knew everything had to be planned, all eventualities considered. ‘Preparation is everything,’ was his mantra. When Car dealer turned up on the day, the place had been transformed from when we visited just before Christmas. We were witnessing the launch of the UK’s first no-fee virtual car auction. Paragon remarketing opened for business on January 19. A corner of a former aircraft hangar in Bedford, home to Paragon Automotive, had been passed over to the UK’s newest car auction upstart. Yes, you read that right, a corner. And two rooms, plus a small kitchen… hardly the football stadia scale of usual car auctions, we know. But that’s the whole point. Because, while the tables are swish, the chairs comfy and the coffee really rather good, it’s all immaterial. You see, this car auction can be one as comfortable as your office chair or living room sofa – because you don’t have to be there to take part. Car dealer was, though. When we arrived, a few hours before ‘going live’ at 3pm, davies was relaxed. He led me into a room. An empty room. Boy, we were early. Still, gave us time to take in the BA Business Class ‘virtual’ auction house he’d promised us. >

‘What do you say to start here – £4,000? Who will give me £3,800? £3,500 – thank you… £3,500, £3,500, £3,500-£3,600, thank you…’ and so it continued – with the intensity of a real auction.’

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feature

Here, laid out, next to the Hob Nobs and afore‘Bids were clicking mentioned caffeine, were company laptops. All hooked into the net, they were proudly displaying up as fast as Joyce the Paragon Remarketing home page. Dealers, if they turned up in person, wouldn’t be raising their could call them. but clicking their mouse. What’s more, buyers hand, Football manager overcoats could be left in the car. Athsma-inducing inhalations of cold-start were utilising the diesel fumes were not even a consideration. And keeping in touch with the office (or Facebook) was ‘question’ process, a breeze. Indeed, potentially easier than ever. But more of that soon… too – which Joyce ‘Out there,’ said Davies, pointing to 100-odd cars up in the hangar, ‘is the first and last time was answering live lined you’ll see all the auction vehicles here. They’ve from the rostrum.’ been there for a week. Nobody has come to see them. We’re hoping that’s showing proof of the

confidence they have in our systems.’ The model is such that cars are transferred straight from Paragon’s reconditioning bays into the auction, rather than wasting time and money being transported around the country. I went outside to nose at the cars, to see how meticulous the standards were. The idea is, dealers will have so much confidence all the cars are on the money and honestly described, not seeing them in the metal to kick the tyres won’t be an issue. Within minutes, I was assured. All the cars really were spotless. They’d been reconditioned, cleaned, polished, then parked indoors and left to gleam in safety. The smell? Not sooty diesel, but sweet car polish. Gorgeous. Each one has been personally investigated by Davies’ fellow directors Paul Joyce and Malcolm Fryer. They then annotate notes to supplement the industry-established Paragon Condition report. We’re talking notes on stone chip locations here. It’s that exacting. If you see an A1 grade car, that’s ready to retail. On a dry day, you really could roll it off the transporter truck on to your forecourt. Back into the warmth of the lounge, for another coffee (see a trend here?) and a run-through of the trading screen by Joyce. It didn’t take long – a few pointers from him, and all is self explanatory. On it there are various windows. See our annotated notes on the screenshot to see what each one does. Suffice to say, there’s yet more information about this on the Paragon website – we soon became familiar with the mechanics of it. We sat down with a laptop. Three cars were put through a trial ‘training’ auction, with open bids. ‘It’s not real, gents,’ said Joyce. Which is how we ended up with something like a £40k Passat. Ahem. By now, it was just a few minutes to the start of the first auction. The room had a few more people in – mainly Paragon staff, curious to see how things were going. A buyer from one garage was there, and a representative from a manufacturer. But the laptops were mainly left unused. Davies was unperturbed. See, he’d been chatting to the tech support man, jetted in especially from New York to oversee the start of trading. ‘We’ve got hundreds of people logged on right now,’ he revealed to me. ‘People are joining all the time, too – see this list…’ He pointed out a screen, with bidders ‘joining’ proceedings. It was growing all the time…

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Paragon Live auction: How it all works... Streaming video – so you can hear and see the auctioneer

Send question/message – so you can communicate directly and instantly with the auctioneer!

Bid here – click it to place a bid!

Vehicle description – includes specifications, condition report and notes

Run list – includes lot numbers and what’s coming up

And then, 3pm came. ‘Welcome, ladies and gentlemen, to the first ever Paragon Remarketing online auction!’ Joyce explained how things would work. And then? Bidding commenced. Just like that. No drama, no fanfare. Straight down to business. Efficient. Fuss free. Davies beamed. He’d got this far. And just knew the rest would go to his plan. The first car auctioned was a silver Corsa. ‘What do you say to start here – £4,000? Who will give me £3,800? £3,500 – thank you… £3,500, £3,500, £3,500-£3,600, thank you…’ and so it continued –

Next item – the next car to be auctioned

with the intensity of a real auction. Yes, we were there, but for those online, the video image really was just like being there, too. The only difference here was clicking a button on the screen, rather than raising a dog-eared auction catalogue. Within a few minutes, it was clear that, despite being virtual, this auction was very real. The Corsa sold for £4,200. Then, straight on to the next – a maroon 206. The same process, the same professional proceedings. Joyce is a smoothly-practiced pro, and proceedings were ticking along nicely.

Bidding info pane – shows if you’re the highest bidder

But, while they were going smoothly, they were also moving perhaps a little more slowly than a real auction. What’s more, the silence in the room was palpable. We could see Joyce on TV – knew he was on TV – so were afraid to speak, just in case we spoiled things. Whispers abounded. Nobody dared even move, in case they walked in front of the camera. But, all the time, something very big was happening. Here was a room almost empty, yet the bids were flying in! Some cars saw a flurry of bids, reserve prices were being met – shut your eyes >

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feature and you could be in a live auction hall. Open them, and you were in a business class lounge. Or, your office, or living room. Half an hour in, and not a single flaw had cropped up. Peter was so relaxed, he left the room to get a coffee. He came back beaming, with water for everyone. ‘It’s the quietest auction room I’ve ever seen!’ he said. It broke the silence. And that relaxed everyone. Away from it, other things were happening. People were getting into the swing of things. Bid speed was increasing, intensity was going up. Prices were realistic, there were no eBay style ‘deadline’ bids – just, a gradual acceptance of the new process, and familiarity gaining speed, efficiency and smooth running. We were aware of this, too. Bids were clicking up as fast as Joyce could call them. What’s more, buyers were utilising the ‘question’ process, too – which Joyce was answering live from the rostrum. Anyone with a laptop in front of them could read these, and hear Joyce‘s reply. Talk about efficient. Even better, buyers who had bid enough started to use the ‘I’m done’ function – signalling a ‘head shake’ to Joyce electronically. He called these: ‘Loughborough, you’re out, Scotland, it’s between you and Birmingham...’ The bidding parties knew who they were, knew where they were. It brought newfound clarity to the process, and was impressive to watch in action. It was clear that, to best use the service, it was actually easier if you weren’t there. Yes, we had laptops in front of us, but we also had Joyce live – multiple feeds, like going to a real-life auction and simultaneously watching it on CCTV. Really, there simply was no need to be present, as there was nothing we could see there that we couldn’t find out away from it. And plenty more than the computer offered, not available to us. CAP prices, for example. Detailed notes on condition. Mileages. Even a complete set of high-res images before our very eyes.

Stephen Hucklesby, Paragon’s group managing director

I mentioned this to Peter. ‘Exactly! I’d be delighted if nobody turned up today – but 500 people logged on. It’s all designed to maximise efficiencies, and we’ve done our all to prove to people they don’t need to be here. ‘You can’t argue with what we’re saying – if you’re not happy with the car, simply send it back, and we’ll return your money. All this is here is to build trust in the system. Prove to dealers that it works. Given that there are only three people here today, it looks like we’ve already done our job. Because you’ve seen that, despite this, the auction is going just fine.’ He was right. What else was there to do, but to go home? I could even report that it was a bit of a waste of time, as I didn’t really find out anything that I couldn’t have done at the office. But that

very fact is the beauty of the success. Online auctions work. The Paragon system is robust, effective and, it seems, something dealers will quickly get the hang of. Suddenly, the smallish premises doesn’t seem like an issue. They’re not needed, and it’s thanks to efficiencies like this that Paragon is able to do it all for free. Indeed, even this offer is stretching for the first few months, to free delivery, too. Really, there are few cheaper ways on the market to source cars. I drove away, mindful of my bulging diary. Mindful that the afternoon I’d spent there could have been better used back at the office. I’d seen a revolution, alright. But I could have done just the same back at base… something that, right now, you can do, too. [CD]

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6/2/09 09:46:03

cultclick cars right

...in association with G-Forces

Attitude is the key to success Recessions aren’t all bad news, explains G-Forces’ Tim Smith. They also hold countless opportunities for dealers with the right positive attitude

he automotive industry, according to Business Secretary Peter Mandelson, is in the frontline of the economic downturn having fallen ‘faster and further than any other sector since the summer’. The media doesn’t help, playing up every market downturn and spewing continued negativity and uncertainty into the collective consciousness just to fill airtime. Uncertainty delays decisions and creates confusion around business. However, research shows that businesses that are pro-active and continue to advertise and increase their market share reap the rewards when the market bounces back. McGraw-Hill research, analysing 600 companies between 1980-85, found that after the 1981-82 recession, companies that had kept advertising saw sales rise 256 per cent over those who had not. My own experience is backing this up with many of our customers reporting record sales months. G-Forces have many delighted directors and dealer principals enthusing about the Christmas period and the start to 2009. This is national, too: a well-known Scottish dealer recording their best Christmas ever, a Midlands-based car supermarket breaking alltime sales records and many of our South East clients amazed by how good business is. So what differentiates them from their competitors and is responsible for such stellar performance in this economy? To my mind it’s their attitude and the way they run their companies. It’s no coincidence that G-Forces is employed by some of the most forward-thinking and progressive main dealers in the UK. It’s this attitude, combined with their belief in embracing every sales and marketing avenue available and delivering premium service levels that continually drives innovation in their businesses.

‘Recessions really offer opportunities to market in an environment of relatively less noise when others are cutting back.’

an environment of relatively less noise as others around you are cutting back’. While risk is ever apparent in business and spending on marketing is the last thing most want to do right now, if you aren’t moving forward, you’re sinking. Markets expand and contract over time for many reasons; be they economic, political, social Peter Vardy views his website as his fifth dealor technological. The automotive industry is ership. This philosophy has meant a commitment currently contracting yet everybody I talk to to building a quality service around the internet. is looking past the recession to brighter times His web team are very knowledgeable about ahead. This demonstrates belief in the long-term the site, monitor everything and are proactive viability of the market from business owners. in improving their web presence. They treat Logic dictates that if you don’t believe you can their website as a critical part of their marketmake money out of it, you’ll exit the market and ing armoury by complimenting print and other go and sell something else. Establish a commitoffline marketing with their online activities. The ment to the market then back it up. Generate internet means they can counteract a diminishsales, continue to improve your business and ing local market by reaching further afield. gain market share. This means performing the Advertising Age recently stated that ‘recessions same basic business functions even though times offer unprecedented opportunities to market in are tougher. If you don’t, someone else will.

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... or dents, scrapes, scuffs and chips for that matter. The Smart Effect is an innovative new way for you to make money from cosmetic vehicle repairs. The ‘smart’ market is growing fast. In just five years, it has more than doubled in value, from £30 million to £70 million. The Smart Effect is your chance to tap into this lucrative market.

What is The Smart Effect? The Smart Effect is an exciting new and totally flexible business package designed specifically to enable dealers to generate substantial smart repair revenues quickly, easily and very cost-effectively. With The Smart Effect you could be operating your own highly profitable cosmetic vehicle repair business in next to no time with services including repairs to body panels, bumpers, alloy wheels, windscreens, leather and interior trim.

We take care of everything for you Giving your business The Smart Effect is remarkably simple. We take care of everything. All you have to do is supply the space. You can choose from a full range of Smart Effect ‘packs’ to tailor your very own on-site cosmetic vehicle repair operation. These include:

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6/2/09 10:12:19 09:46:07 22/1/09

10:12:19

cult cars servicing

in association with the Motor Industry Code of Practice

Codes director wins gong Cracking the Code Chris Mason says you should demonstrate your commitment to the code

ar dealer columnist and Motor Codes director Chris Mason has been honoured at the CAT magazine awards. Mason fought off tricky competition to receive the Person of the Year award, beating five strong opponents. over the past three years, Mason has been persistently working hard to develop the new Code of Practice. ‘To be nominated in the first instance was unexpected, but appreciated,’ Mason said. ‘However, to go on to pick up the most votes in total has been very encouraging, I see this as an endorsement of what the industry has managed to achieve collectively. ‘I am proud to accept this award on behalf of everyone who is helping to make the Motor Industry Code of Practice for Service and repair such a success.’

‘The fact no judging panel is involved in the process of this award adds even greater value to the recognition.’ More than 5,000 garages have subscribed to the Code in less than a year. It has also completed the first stage of the office of Fair Trading’s Consumer Codes Approval Scheme, which sets the minimum levels for garage operators and provides customers with an easily accessible dispute resolution process. ‘The fact that no judging panel is involved in the process of this award adds even greater value to the recognition factor,’ added Mason. ‘And it should send the message to those not yet subscribed, that they have no reason to delay.’ NICoLA LINNINGToN

want to expand on the comments I made in last month’s column, when I said there are real-life benefits to be achieved by garages subscribing to the Motor Industry Code of Practice for Service and Repair. A code isn’t just about consumer protection – it is a valuable marketing tool and it is a powerful method by which a sector can regain some inﬂuence over ever-increasing customer expectations. For a responsible business operator, if that is ‘You are free actually what you are, the to market code merely confirms this your superior position through third position over party verification from Motor Codes Ltd and given your local time, the Office of Fair competition Trading. You are then free to customers.’ to use your subscription to the code to market your superior position over your local competition to the customers you are looking to attract to your business, and equally to other business you deal with. It’s reassurance for customers and, if used properly, increased status for a garage operator. Look at the garage finder facility on the service and repair code website. Motorists are already using this in increasing numbers every day. If you’re not on it, they can’t see you and all you have to do to be on it is subscribe to the code. The most basic of marketing opportunities, but given time our marketing plans for the code, and the website, will make it one of the best. Can you buy that anywhere else for £75 per year? For more information see motorindustrycodes.co.uk

Paddy Hopkirk hands out Garage of the Year award to Dakar GARAGE of the Year 2009 has been awarded to Dakar Cars, a Land Rover specialist. Rally star Paddy Hopkirk presented the award to MD Barry Chantler and operations manager Chris Barnett at the CAT Awards. The company has an interesting history. Doors first opened back in 1991 to build the Challenge Anneka off-roader! Today, the garage has a five-bay MOT workshop, and offers diagnostics, tyres and parts services for Land Rovers.

It employs 13 staff and is a member of the Good Garage Scheme. It is set to expand further too, with the launch of a trade parts delivery service planned for the coming months. ‘We are all delighted to officially be named Garage of the Year,’ said Chantler. ‘All the staff have worked hard to achieve this. ‘It’s also confirmation to all of our loyal customers that they really can be confident of getting the very best service when they come to us.’

Good for customers, good for our industry, good for your business.

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Find out more about the new Service and Repair Code at motorindustrycodes.co.uk

19/12/08 16:58:00 CarDealerMag.co.uk | 51

6/2/09 09:46:10

dot com

...in association with Really Good Domains

It’s time to give chase to the down-sizing motorists There is one market that will continue to tick over in the recession: the city car sector, reports Really Good Domains

everal automotive industry experts, including the SMMT and the boss of Toyota GB, have voiced their predictions for the total number of new car registrations for 2009 – and it’s roughly 1.7m. As you’ll know, that’s down from 2.4m in 2007 and 2.1m last year. What is most important now to dealerships up and down the country is the need to take steps to secure their share of that smaller market. This year will undoubtedly see the rise of the ‘down-sizers’. These buyers can take on multiple forms, but could well make the difference in this challenging environment. These are people from all demographics that are looking to change cars to something smaller, something with lower running costs, something easier to maintain, perhaps greener or maybe even all of the above. Taking a look at the UK’s new car registrations, perennial favourite the Ford Focus looks like it could lose the number one spot in 2009 to superminis in the shape of the Ford Fiesta and Vauxhall Corsa. The important aspect to remember is that they are looking to buy or lease a new vehicle, which is good, but will definitely be using their head over their heart when making the allimportant decision. These down-sizers will be looking to maximise fuel efficiency, while minimising overheads such as car payments, insurance, car tax (VEd) and maintenance costs. Business down-sizers will also be on the increase with the imminent arrival in April of the new changes to the capital allowance rules for company cars; effectively

‘Down-sizing buyers take on many forms, but could well make the difference in this challenging environment.’ meaning it will take much longer to get the tax relief on cars with emissions over 160g/km. So firstly you need to make sure you can satisfy the needs of the down-sizer. Most manufacturers have a selection of high quality, new superminis or city cars – such as the Fiat 500 above – and many now have a green badge available for those down-sizers that are looking to reduce their car tax and maximise their fuel efficiency. Think EConetic, EComotive, Efficient dynamics, drIVe, or Blue Lion. The carmakers have definitely cottoned on to the down-sizer with through-the-line advertising

campaigns based around these badges already in evidence. Secondly, these down-sizers are making their decisions using their heads so are likely to be heavily researching their next car more than ever, and this now means pretty much one thing: the internet. Advertising on websites such as SaveMoney onCars.co.uk and ContractHireAndLeasing. com are ideal ways of putting your downsizer-friendly deals in front of the maximum number people. Firstly by visitors going directly to these incredibly popular sites, but secondly visitors to roadTestreports.co.uk and TheGreenCarWebsite.co.uk (key websites popular with this new breed of buyer) will inevitably find their way to actual deals on SaveMoneyonCars.co.uk and ContractHire AndLeasing.com.

ContractHireAndLeasing.com SaveMoneyOnCars.co.uk CarSupermarkets.co.uk TheVanWebsite.co.uk CarAndVanAuctions.co.uk TheGreenCarWebsite.co.uk RoadTestReports.co.uk CarLeasingCompanies.co.uk FleetDir uk Cabrioletcar.co.uk ContractHireAndLeasing.com CarSupermarkets.co.uk TheGreenCarWebsite.co.uk VanLeasingSpecialOffers.co.uk SaveMoneyOnCars.co.uk RoadTestReports.co.uk TheVanWebsite.co.uk ContractHi fers.co.uk FleetDirectory.co.uk ContractHireAndLeasing.com SaveMoneyOnCars.co.uk CarSupermarkets.co.uk TheVanWebsite.co.uk CarAndVanAuctions.co.uk TheGreenCarWebsite.co.uk RoadTestReports.co.uk CarLeas CarLeasingSpecialOffers.co.uk Cabrioletcar.co.uk ContractHireAndLeasing.com CarSupermarkets.co.uk TheGreenCarWebsite.co.uk VanLeasingSpecialOffers.co.uk SaveMoneyOnCars.co.uk RoadTestReports.co.uk TheVa com CarLeasingSpecialOffers.co.uk FleetDirectory.co.uk TheGreenCarWebsite.co.uk Cabrioletcar.co.uk VanLeasingSpecialOffers.co.uk TheVanWebsite.co.uk CarSupermarkets.co.uk ContractHireAndLeasing.com SaveMo TheVanWebsite.co.uk CarAndVanAuctions.co.uk TheGreenCarWebsite.co.uk RoadTestReports.co.uk CarLeasingCompanies.co.uk FleetDirectory.co.uk CarLeasingSpecialOffers.co.uk Cabrioletcar.co.uk ContractHireAndL GreenCarWebsite.co.uk VanLeasingSpecialOffers.co.uk SaveMoneyOnCars.co.uk RoadTestReports.co.uk TheVanWebsite.co.uk ContractHireAndLeasing.com CarLeasingSpecialOffers.co.uk FleetDirectory.co.uk ContractH co.uk CarSupermarkets.co.uk TheVanWebsite.co.uk CarAndVanAuctions.co.uk TheGreenCarWebsite.co.uk RoadTestReports.co.uk CarLeasingCompanies.co.uk FleetDirectory.co.uk CarLeasingSpecialOffers.co.uk SaveMo tractHireAndLeasing.com CarSupermarkets.co.uk TheGreenCarWebsite.co.uk VanLeasingSpecialOffers.co.uk SaveMoneyOnCars.co.uk RoadTestReports.co.uk TheVanWebsite.co.uk ContractHireAndLeasing.com CarL co.uk TheGreenCarWebsite.co.uk Cabrioletcar.co.uk VanLeasingSpecialOffers.co.uk TheVanWebsite.co.uk CarSupermarkets.co.uk CarLeasingSpecialOffers.co.uk ContractHireAndLeasing.com SaveMoneyOnCars.co.uk co.uk CarAndVanAuctions.co.uk TheGreenCarWebsite.co.uk RoadTestReports.co.uk CarLeasingCompanies.co.uk FleetDirectory.co.uk CarLeasingSpecialOffers.co.uk Cabrioletcar.co.uk ContractHireAndLeasing.com CarS co.uk VanLeasingSpecialOffers.co.uk SaveMoneyOnCars.co.uk RoadTestReports.co.uk TheVanWebsite.co.uk ContractHireAndLeasing.com CarLeasingSpecialOffers.co.uk FleetDirectory.co.uk ContractHireAndLeasing.com kets.co.uk TheVanWebsite.co.uk CarAndVanAuctions.co.uk TheGreenCarWebsite.co.uk RoadTestReports.co.uk CarLeasingCompanies.co.uk FleetDirectory.co.uk CarLeasingSpecialOffers.co.uk Cabrioletcar.co.uk Contrac co.uk TheGreenCarWebsite.co.uk VanLeasingSpecialOffers.co.uk SaveMoneyOnCars.co.uk RoadTestReports.co.uk TheVanWebsite.co.uk ContractHireAndLeasing.com CarLeasingSpecialOffers.co.uk FleetDirectory.co.uk co.uk VanLeasingSpecialOffers.co.uk TheVanWebsite.co.uk CarSupermarkets.co.uk ContractHireAndLeasing.com SaveMoneyOnCars.co.uk CarSupermarkets.co.uk TheVanWebsite.co.uk CarAndVanAuctions.co.uk TheG co.uk CarLeasingCompanies.co.uk FleetDirectory.co.uk CarLeasingSpecialOffers.co.uk Cabrioletcar.co.uk ContractHireAndLeasing.com CarSupermarkets.co.uk TheGreenCarWebsite.co.uk VanLeasingSpecialOffers TestReports.co.uk TheVanWebsite.co.uk ContractHireAndLeasing.com CarLeasingSpecialOffers.co.uk FleetDirectory.co.uk ContractHireAndLeasing.com SaveMoneyOnCars.co.uk CarSupermarkets.co.uk TheVanWebs GreenCarWebsite.co.uk RoadTestReports.co.uk CarLeasingCompanies.co.uk FleetDirectory.co.uk CarLeasingSpecialOffers.co.uk Cabrioletcar.co.uk ContractHireAndLeasing.com CarSupermarkets.co.uk TheGreenCarWeb SaveMoneyOnCars.co.uk RoadTestReports.co.uk TheVanWebsite.co.uk ContractHireAndLeasing.com CarLeasingSpecialOffers.co.uk FleetDirectory.co.uk TheGreenCarWebsite.co.uk Cabrioletcar.co.uk VanLeasingSpeci Supermarkets.co.uk CarLeasingSpecialOffers.co.uk ContractHireAndLeasing.com CarSupermarkets.co.uk TheGreenCarWebsite.co.uk VanLeasingSpecialOffers.co.uk SaveMoneyOnCars.co.uk RoadTestReports.co.uk The ing.com CarLeasingSpecialOffers.co.uk FleetDirectory.co.uk TheGreenCarWebsite.co.uk Cabrioletcar.co.uk VanLeasingSpecialOffers.co.uk TheVanWebsite.co.uk CarSupermarkets.co.uk ContractHireAndLeasing.com Sav reallygooddomains co.uk TheVanWebsite.co.uk CarAndVanAuctions.co.uk TheGreenCarWebsite.co.uk RoadTestReports.co.uk CarLeasingCompanies.co.uk FleetDirectory.co.uk CarLeasingSpecialOffers.co.uk Cabrioletcar.co.uk ContractHire sales@reallygooddomains.com www.reallygooddomains.com “Number 1 in Marketing for Motoring...”FleetDirectory.co.uk Cont TheGreenCarWebsite.co.uk VanLeasingSpecialOffers.co.uk SaveMoneyOnCars.co.uk RoadTestReports.co.uk TheVanWebsite.co.uk ContractHireAndLeasing.com CarLeasingSpecialOffers.co.uk Cars.co.uk CarSupermarkets.co.uk TheVanWebsite.co.uk CarAndVanAuctions.co.uk TheGreenCarWebsite.co.uk RoadTestReports.co.uk CarLeasingCompanies.co.uk FleetDirectory.co.uk CarLeasingSpecialOffers.co.uk

Online advertising that works ...from a name you can trust If you’re interested in selling seriously more vehicles, call 0161 482 7650 now

ing.com CarSupermarkets.co.uk TheGreenCarWebsite.co.uk VanLeasingSpecialOffers.co.uk SaveMoneyOnCars.co.uk R 52 | CarDealerMag.co.uk TheVanWebsite.co.uk ContractHireAndLeasing.com CarLeasingSpecialOffers.co.uk FleetDirectory.co.uk TheGreenCarW car.co.uk VanLeasingSpecialOffers.co.uk TheVanWebsite.co.uk CarSupermarkets.co.uk CarLeasingSpecialOffers.co.uk CarDealerIss12.indd 52 6/2/09 09:46:12 ing.com CarLeasingSpecialOffers.co.uk FleetDirectory.co.uk ContractHireAndLeasing.com SaveMoneyOnCars.co.uk C

cult cars

LCV insight

...in association with Vansunited.co.uk

Villa signs Vauxhall vans Richard Aucock reports on Aston Villa’s new vans signing, free sat nav for Daily buyers and the good news that there’s buyers out there for LCVs

ston Villa FC has helped deliver Premiership football success for eight Vauxhall commercial vans! A Combo and seven Movanos have been put to good use at Villa Park and Aston Villa’s training ground, including kit transportation duties, ferrying academy players to matches and shuttling staff around on match days. Aston Villa partnerships activation executive (don’t ask us what that means) ronan Clancy said: ‘Aston Villa FC was proud to welcome Vauxhall as our new commercial vehicle supplier for the 2008-09 season. ‘We are looking forward to building on our strong relationship with Vauxhall over the rest of the season and are delighted to have the use of such fine vehicles, which are used on a daily basis around Villa Park and at our training ground.’ Meanwhile, Iveco dealers are handing out free sat nav to buyers. Iveco daily buyers registering a new van during the first quarter of 2009 will get a free Trafficmaster system. The offer, available in all Iveco’s UK dealers, is for a Smartnav system that also includes 12 months’ free subscription. Andrea Bucci, marketing director at Iveco UK, said: ‘Satellite navigation can really take the stress out of driving, and while it is booming in the car market, it still remains a luxury for many commercial vehicle drivers.’ She is hopeful it will generate strong extra sales for Iveco. ‘Combined with all of the regular features packed inside a

VW gains market share, despite falling sales VW is reporting that its UK van market share is growing, but that’s despite the maker selling 1,350 fewer vans. Total sales of 26,427 saw its share rise to 8.8 per cent last year – making it the UK’s number one commercial vehicle importer.

Globally, the brand still sold more than half a million vans, despite this total being some 47,000 less than in 2007. Successes include the new Caddy Maxi panel van and the seven-seat Life people carrier. These two models alone added nearly 2,000 sales to VW’s total.

daily, the inclusion of Smartnav ensures it is an even better proposition for light commercial vehicle operators.’ Van dealers are also in a prime position to provide canny small businesses with bargain-priced vans, says BCA. The auction house believes that,

The Sportline range was also extended to the Caddy range, for van drivers who want GTI styling and handling. Best selling of all UK VW vans, however, was the Transporter. This was followed by the Caddy, Crafter and that new Caddy Maxi.

after falls in values towards the end of 2008, vans have never been cheaper. And early results in 2009 suggest the commercial market may be bouncing back in response to this. BCA’s duncan Ward said: ‘With credit tight, there are plenty of buyers and lots of activity in the budget sector, but demand slows around £5,000 – this seems to be the upper limit that many buyers can afford without finance.’

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auctions

Auction halls heaving as dealers look to restock With some dealers moaning about a drought of quality used car stock, many are heading back to auction halls

ealer buying activity has increased dramatically as an upturn in consumer demand has caused used stocks to run drastically low. The happy news comes despite signs of a continued slowdown in consumer spending – but comes as a welcome relief for used car dealers nationwide. EurotaxGlass’s reports that a shift in dealer strategy is behind this. With income from new cars predicted to fall in 2009, many are looking to the used market to compensate. But fewer part exchanges, and concerted efforts by dealers to clear used stocks last year, mean reserves are at historically low levels. This means competition in auction halls is increasing – both for good quality used cars, but also the big gas guzzlers which received such a battering last year. This has meant prices have stopped falling. Indeed, in come cases they’re even on the up! ‘dealers have accepted – albeit reluctantly – that they need to pay the extra to secure the right cars,’ said EurotaxGlass’s editor Adrian rushmore. ‘Auctions have found their inventories dwindling. Even those problem cars, such as executive models and large 4×4s that struggled to find buyers in december, have been attracting bids. ‘The need to restock is great, and many of the large gas guzzlers now appear very good value for money.’ Even dodgy colours and cars in need of refurbishment are being fought over. ‘Although small and affordable cars to retail under £5,000 are

Auctions are busy places at the moment as dealers clamour to restock their forecourts

‘Dealers have accepted – albeit reluctantly – that they need to pay the extra to secure the right cars.’ still very much in favour, car dealers have been viewing everything else in a more positive light.’ The only cloud is that the upturn may be shortlived. ‘The challenges faced by the car market in 2008 have not gone away,’ said rushmore.

‘We are still in a price-driven market, and retail customers are likely to balk if higher trade prices are translated into higher forecourt prices. ‘The current trade buying frenzy will fizzle out within weeks. The chances that dealers will over-extend themselves as they did a year ago is unlikely, simply because the pain that was inflicted then would be too much to bear again.’ Read our blog about our day at BCA looking for bangers: tinyurl.com/d8y3bx

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54 | CarDealerMag.co.uk CarDealerIss12.indd 54

6/2/09 09:46:18

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WE’LL KEEP DOING WHAT

WE DO BEST No-one keeps the used car market moving like BCA. And 2009 will be no different. We’ll continue to sell hundreds of thousands of vehicles this year across 21 auction centres. And we’ll continue to offer you pioneering online tools like Auction View, Live Online and My BCA, to give you more ways to buy and view vehicles than ever before.

www.bca-europe.com

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automation

...Advertisement feature

Time to take pole position With two new products launched and a third just around the corner, we chat to WinWinWorld about how the firm can help dealers survive in these tough times

utomotive consultancy WinWinWorld has launched two new products that will provide dealers with the tools they need to survive. TrackIT and KeepIT have just arrived and the firm will make it a trio with WinIT shortly. So, what can these new products do for you and how can they help you battle these tough times? We caught up with WinWinWorld’s Mark TaylorJones for the low-down. ‘WinIT is the only missing link for the company at present,’ he explained. ‘It will be the best, the quickest and the least expensive lead management system available in the UK. And it will be the most integrated. It joins our product line-up in March.’ Sounds exciting, but what can these new products do for car dealers? ‘TrackIT is already the best deal optimiser on the market and KeepIT is all about managing customer and prospect contact,’ explained Taylor-Jones. ‘In simple terms, WinIT will sell you more cars, TrackIT will maximise your profit and KeepIT will retain customers ready for the next cycle – a true WinWin if ever there was one!’ WinIT is to have a totally different look and feel to anything currently on the market yet will use the same powerful database scripting engine as KeepIT, already in use with a number of dealers across the country. ‘This means that all products including our forthcoming releases are built on a solid, fully developed and tested base, ensuring maximum reliability,’ explained Taylor-Jones. ‘TrackIT is a unique product. Not only does it fully maximise profit – around £100 extra per deal as an average figure – but it also saves money by automating a number of very time consuming jobs around a sales manager’s office. ‘For example, it can offer very fast and accurate deal calculations every time, optimisation of every deal even at peak times, instant offer sheets and order form printing, it pulls GFV’s through from many finance houses and can even compare finance schemes so you make maximum commission.’ It’s a powerful product, that’s for sure. But this is only a fraction of what it can do. TrackIT can also send electronic proposals to many finance companies (offering immediate responses with no re-keying), electronic connection to Abraxas logs (again, no re-keying) and can automate

‘Dealers can use Cherry Picker to calculate the best time to make contact with a customer who originally purchased on finance and offer them a new car.’ calculation of sales commissions and bonuses. It will give dealers access to CAP, Glass’s Guide, HPI and Experian on the same screen – a very useful function – and can automate deal books to penny-perfection. If you need to find a bunch of very hot leads, the system can help again. ‘dealers can use Cherry Picker for this,’ said Taylor-Jones. ‘It calculates the very best time to make contact with customers who originally purchased using finance, allowing the dealer to make a fully calculated offer for around the same payments the customer is already making.’ Very clever indeed. And, to top it off, WinWin offers free access to de-fleeted stocks within the system. Companies like Hertz and National Car rental have signed up already and many more are set to follow. ‘This will let dealers find the customer, do the deal, then find the car,’ said Taylor-Jones. ‘To any dealer, that’s the ultimate vehicle sale. Sell

it without even stocking it or having to go to the auction. All stock being offered is available through a simple search facility that is built into the product even with pictures available to show customers in most cases.’ TrackIT will also connect seamlessly into all other WinWin products that can include a voice over IP telephone system and a dMS database overlay. This online database mirrors any dMS to give simple and effective marketing possibilities which can then be used by third party providers. ‘We believe that many dealer customer-facing systems are much more effective when provided by people who specialise in them,’ added TaylorJones. ‘The time to act is now! When business is good, cost saving and efficiency is often overlooked as rightly or wrongly they go down the order of priority with the rush to make hay. ‘But the flip side of that is when business is bad, businesses often look no further than cost cutting as they try to survive. This is what is happening now. WinWin not only has the products you need to survive, but for the forwardthinking dealer it will make you considerably stronger as well. Success in bad times, as we all know, is a great recipe for strong growth in the future.’ Email callmenow@winwinworld.co.uk or call (020) 7538 6688

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products 1. Turtle Wax Polish and Protect Price: £9.99 Contact: turtlewaxeurope.com IT doESN’T matter how long you spend cleaning your car – neglect the wheels and you might not have bothered. dirty rims ruin the look of your car which is why you need a helping hand like this Turtle Wax Polish and Protect Kit for wheels. It bundles together the car cleaning experts’ Wheel Protector, a tube of wheel polish and a cleaning cloth – and it works superbly.

2. Creative Zen X-Fi

Price: £150 Contact: uk.europe.creative.com IF LooKS alone are what you want out of a portable media player, this Creative offering will hit the spot! Its sleek and sexy casing is bound to impress – but sadly it’s no great shakes when it comes to performance. It can handle a host of music, video and picture files downloaded from your PC, has the ability to stream media from a home server and there’s an FM radio. It even has a built-in chat facility similar to MSN Messenger. But, compared to some rival portable media players, it is a bit lacking in space.

3. Tamiya Lambo Countach

Price: £170 Contact: 01908 605686 WHEN it comes to old school cool, it doesn’t get much better than a Lamborghini Countach! With more wings than BA’s fleet of Boeings, the 80s supercar is the epitome of bling. If you’d like to get your hands on a miniature version of the legendary Italian icon, model carmaker Tamiya has just released this 1/10th scale remote control version. It boasts four-wheel drive, working LEd lights and can hit a 28mph top speed.

4. Cordless Jump Starter

Price: £75 Contact: blackanddecker.co.uk ForECoUrT full of cars with flat batteries? Well, this cordless jump pack from Black & decker is the perfect solution. You charge it up from the mains and it stores car-jolting power to revive even the flattest of batteries. It also features a battery indicator light and a torch so you can see what you’re doing in the dark.

5. Digital Tyre Pressure Gauge

Price: £25 Contact: halfords.com CHECKING your tyre pressures regularly can be a great way to save money! Seriously, by making sure the air in your rubber is at the manufacturerrecommended level, you will use less fuel and your tyres will last longer. This is the latest offering from Michelin and it’s got a useful white LEd torch built in. We like the fact it stores the recommended pressure for your tyres, has BAr, PSI and kPa readings and the display is easy to read.

6. JVC KW-NX700

Price: £950 From: jvcmobile.co.uk THE KW-NX700 is a satellite navigation unit that’s packed with features. It has the ability to take an AV feed so you can hook up a reversing camera and there’s mapping for 30 European countries included on a built-in flash memory. New maps can be uploaded via an Sd card slot behind the front panel and the clever system even features traffic-jam spotting technology so you can route around jams. The unit plays most Cd formats and can show dVds.

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What is SAF?

Specialist Automotive Finance (SAF) was introduced by the Finance and Leasing Association (FLA) to raise skills and knowledge surrounding the sale of nance in car showrooms.

Where to nd SAF information?

www.SpecialistAutomotiveFinance.org.uk, the industry’s SAF portal. Includes a link to the competence test and supporting reference material. www.FinancingYourCar.org.uk, provides free advice to consumers on the products available to them in the showroom to help fund their next car purchase.

Why SAF?

www.SpecialistAutomotiveFinance.org.uk www.FinancingYourCar.org.uk

For dealership staff, the SAF competence test will be a real advantage. It will be clear recognition of your professionalism and expertise and will give customers condence in the quality of your advice on motor nance options.

Who should register for SAF?

SAF is free and open to anyone involved in the sale of motor nance. Companies should go to www.SpecialistAutomotiveFinance.org.uk for more information on how to register. For further information contact Amy Smith on 020 7420 9613 or email: amy.smith@a.org.uk

NEW FLA SEMINAR. WEDNESDAY 22 APRIL 2009. LONDON

Taxation for Business Cars: An update

The government has spent some time reconsidering the corporation tax treatment of business cars. A new regime with capital allowances linked to CO2 emissions is scheduled for implementation from April 2009. The nal design of this new regime is expected to be conrmed in the March 2009 Budget, with the details included within the Finance Bill 2009.

This brieng will cover: •

The new rules and how these differ from the previous regime

•

Which cars are affected by the new regime

•

Implications for pricing and product development in response to the new regime

To register call Linda Charles on 0207420 9626 book online at www.atraining.org.uk or email linda.charles@a.org.uk for full booking information.

Car Dealer - FLA Debt Recovery f1 1

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Peering into the lives of the motor trade...

On The Spot

Name: Jim reid Age: 39 ( although I still feel 20) Lives: Kemnay, a small village 15 minutes from Aberdeen. Any family? My darling wife of 18 years, Gail, and my two kids Laura, 16, and Liam, 12.

nesses to make sure our clients receive the best care. Any downsides? The long hours and the weekend work is always the downside with the motor trade – I’m sure everyone out there will agree with me.

What do you drive? A wee Corsa van, with Gail driving the family car which changes often. What was your first job? YTS in the parts department of a large Ford garage in Aberdeen. But I got my work ethic from helping out on the family farm when I was still at school. What was your first car? Toyota Corrola 1.3 estate on a Y-reg in bright red – not number one on street cred! Who do you work for now? Jim reid Vehicle Sales Ltd. Gail and I started up our business in February 2003 with 12 used cars – we are about to enter our seventh year in business with a

How much do you earn? We have a very good lifestyle, with a lovely house and a great Caribbean holiday each year – what more do you need? So, enough to pay for these would be the answer. stock of 55-60 vehicles. What does this involve? Very hard work, a lot of planning, non-stop phoning and talking to as many people as you can, as every person you talk to is a potential customer. What are your job’s biggest challenges? The fact that we have to rely on so many other people from other busi-

Do you have an average day and how does it pan out? Most days start at just after 6am, with me opening up the garage around 7.45am and locking up just after 6.30pm, with another hour of planning for the next day during the evening.

What is the most expensive thing you’ve ever bought? I hate spending money so, apart from cars, I can’t think. What’s your mobile phone ring tone? American Land by ‘The Boss’ Bruce Springsteen. What is the biggest challenge car dealers face? Survival. With the guide prices of cars dropping so quickly and less buyers out there it has been hard and will remain so for a few months yet. However, there is light at the end of the tunnel. What would be your number one tip for car dealers? Keep focused on delivering a top quality service and adopt a positive attitude.

And finally... what’s your motto in life and business? What newspapers/magazines Have a positive mental attitude and treat everyone as you would do you read? Local Aberdeen paper the P&J, Auto Express, and like yourself and your family to be treated. of course Car dealer.

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

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used cars z

Trading Places

...in association with BEN

The right man for the job Arron James plan to go one step futher in their fund-raising endeavour and will give a slice of profit from any extras sold to our BEN cause

‘I

’d rather sell Fiestas and drink Champagne, rather than fill my showroom with Ferraris.’ Wise words from James Brocklehurst – which is why Car dealer reckons he’s the perfect man to take on our Trading Places challenge! As you all know, the trail has run a bit cold here recently. Tough times mean dealers are focusing on their core activities, which up to now has left our BEN charity in limbo. But then, as reported last month, a call out of the blue – from Brocklehurst himself. ‘It sounds like a fun exercise – and it’s all for a good cause.’ We explained how it had fallen to pieces a bit recently. No problem, he said. Arron James to the rescue. They’re a partnership between Brocklehurst and Mark rodgers, and are based in dewsbury. ‘We were set up in 2000, and trade in used cars on an ex-main dealer franchise site. We’ve a showroom for 16 cars, and have space outside to display up to 100 used cars.’ He was keen to take on the Car dealer challenge, as he saw an opportunity to utilise a plan of action Arron James had recently focused on. ‘We used to sell cars up to £20,000. However, in the current

‘I’m not interested in vanity – I just want to make a profit. And this is for a good cause.’ market, we’ve decided that £10k seems to be working.’ Brocklehurst reports that busiwill be our ceiling,’ he said. ‘A few months back, we looked ness has been strong, with customat what was selling, and vowed ers responding to Arron James’ new efforts. to ensure our stock profile He admits the BEN challenge reflected this. Hence the £10k would have been an easier one limit; most cars sell in the £3k£7k bracket. I’m not interested in to take on six months ago, but is vanity – I want to make a profit. still keen to press ahead with the baton. What’s more, he’s going a That’s why we introduced the change in business. And, so far, it step further, too!

BEN – the automotive industry charity AROUND one in 10 people in the UK are eligible for BEN’s help. The charity provides assistance to more than 15,000 people, offering practical, emotional and financial support for issues ranging from disabilities to depression, loneliness and poverty. Support varies from providing advice and

assistance with practical help, offering emotional support and working with other agencies to give specialist advice on debt. BEN has a nationwide team of welfare officers who make home visits to offer help to individuals and families. They examine their needs and support people through tough times.

Arron James have found a car and are trying to sell it for as much as possible to help our BEN total ‘What about if I give you an extra donation for every add-on product we sell, too? Finance, GAP insurance and PPI schemes are all key to customers today… I’m willing to throw in some extra money for BEN, for every such product we sell.’ How about that! Further funds for the charity, from a dealer who knows just how to do the right thing. The car he’s chosen to sell is a Peugeot 307CC on a 54-plate, 36k on the clock and up for £6,695. He hopes it won’t be long before he can report back with a successful sale. Question is, just how much could BEN be about to make from this sale? Bangers4BEN challenge: Don’t miss it next month

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used cars

Encouraging start to ’09

Mr and Mrs Average could come to the rescue, says HPI’s Valuation Expert, Martin Keighley

Is the tide beginning to turn for the used market? It could be, according to HPI Used Car Valuations Index

he recession continues to challenge the motor trade. Dealers have no money left to see them through hard times as manufacturers previously pushed for funds to be invested in posh glass palaces when times were good. Nobody was surprised when government incentives failed to stimulate the market, with the VAT reduction and the cuts in interest rate making little or no impact on sales figures. The retail market, like the high street has plenty of window shoppers, but few actual buyers. Many can’t, or won’t, get the finance, while others are deferring new purchases in the face of current uncertainty and many could be waiting for prices to get even lower. With job losses hitting the headlines, people are worried whether they will be in work this time next year. On the other hand, Mr and Mrs Average could be feeling far more comfortable in their jobs. In addition, they now pay less for their mortgage, fuel, food and clothes, which means they haven’t been this well off for a while! So where should they put their cash? Savings accounts are now almost pointless, while the stock market is still unstable. So will Mr and Mrs Average come to our rescue and bag themselves a used car bargain? One thing’s for sure, 2009 is going to be a buyer’s market, so dealers would be well placed to focus their energies on this target audience.

lthough the outlook remains unsettled going into 2009, this is the first time in months that some used car values have gone up. The month-on-month figures for december to January show that on average values are up for all 12 and 36-month-old cars, however, the new year usually sees an increase – so the worst is not over yet. New car registrations were around 2.1 million in 2008, down from 2.4 million the previous year, but a great chunk of these were ‘self registrations’. Stocks of some new and nearly new cars and light commercial vehicles are growing, while fields, ports and old airbases are getting fuller by the day. Expect new car sales to fall to between 1.5 and 1.6 million in 2009. But is the tide changing for the used car market? New year lift January values are generally higher than they were in december. This year the 12-month petrol sector saw a rise of more than six per cent and diesel was up too. Looking at 36-month vehicles, the petrol sector was up nearly seven per cent and diesel is up by a similar percentage. Year-on-year used car values continue to depreciate though, with the fall increasing by one per cent to minus 28 per cent for all cars at 12 months and nearly one per cent to minus 33.9 per cent for all cars at 36 months.

Upper Medium sector 10 major ﬂeet players Rank

Model

Interestingly, the 12 and 36-month petrol sector saw values stabilise for the first time in many months. Looking back at the market in January 2008 though, things were still relatively buoyant, but a year on things are patchy to say the least. overall, some sectors show signs of improved confidence and it won’t shock anyone to hear that the city, supermini and small cars continue to lead the charge. But, unexpectedly, some luxury and 4x4 petrol models show signs of perking up too, with the industry seeing some firm evidence that some of these ‘undesirable’ vehicles are selling again. Smaller sales, smaller profits The massive used value falls, combined with falling fuel prices means some larger vehicles are now looking very cheap indeed to buy and run. Clean, sensible mileage stock will always be in demand, but ready to retail prices (rather than trade prices) are the norm for these in both auction and trade environments which consequently, is squeezing retail profit margins on these ‘desirables’.

Larger cars with sensible mileages represent great value for used car buyers

...in association with HPI Valuations

Models in range

Average new price

Average RV 36(60) £

5 6 7 8 9 10

Skoda Superb (New) Honda Accord (New) Mazda 6 Toyota Avensis Volkswagen Passat Vauxhall Insignia Volvo S40 Alfa romeo 159 Citroen C5 SEAT Toledo

25 26 23 24 29 130 40 23 15 4

£19,690 £23,192 £18,337 £20,225 £20,157 £21,226 £20,248 £24,863 £18,941 £16,479

£6,817 £7,832 £6,133 £6,696 £6,023 £6,244 £5,954 £6,849 £5,052 £4,319

34.8 33.8 33.5 33.1 30.1 29.6 29.4 27.7 26.8 26.2

358 427 339 376 393 416 397 500 386 338

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

Chevrolet Epica SEAT Toledo Mazda 6 Chrysler Avenger Skoda Superb (New) Toyota Avensis (New) Citroen C5 Volkswagen Passat Chrysler Sebring Volvo S40

4 4 23 5 25 24 15 29 3 40

£15,721 £16,479 £18,337 £16,648 £19,690 £20,225 £18,941 £20,157 £18,573 £20,248

£4,119 £4,319 £6,133 £3,980 £6,817 £6,696 £5,052 £6,023 £4,425 £5,954

26.2 26.2 33.5 23.9 34.8 33.1 26.8 30.1 23.8 29.4

322 338 339 352 358 376 386 393 393 397

Ranked by residual value % 1 2 3 4

Average RV 36(60) % Monthly depreciation cost £

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...in association with HPI Valuations

Tough times still ahead for new car sales, according to SMMT

he new car market remains depressed, with buyers cautious over spending on large items, according to the SMMT. Following the trend started in the last months of 2008, the market continued to decline sharply at the start of 2009, with volumes down by 30 per cent. Consumers remain concerned the general economic gloom will impact upon them directly. With jobs being lost, consumers appear unwilling to spend on large discretionary items like cars. The market is expected to decline by 19.3 per cent

in 2009 to 1.72 million units. This would be some 410,000 units off the 2008 total. The temporary VAT cut in December is one measure to help the market recover, but the impact is equivalent to a 2.1 per cent cut in prices. Manufacturers continue to offer finance, but are seeking further government support to kick-start demand. All sales types fell in January, although the fall in the private sector was less steep – perhaps reflective of the VAT cuts but more likely that the private sector had already begun to show signs

of decline in January 2008. In January diesel penetration rose to match its second highest level ever, but diesel volumes still fell by 29.7 per cent. Alternatively fuelled vehicle demand showed a particularly sharp decline, down 47.4 per cent, in part reflecting strong growth in 2008. All segments showed falling volumes in January, except the mini segment – which was up 40.8 per cent. Supermini demand slowed less steeply than in other segments to post a market share up almost five percentage points to 35.6 per cent.

SMMT sales data January / year to date

Figures supplied by SMMT

January Marque

Abarth Alfa Romeo Aston Martin Audi Bentley BMW Cadillac Chevrolet Chrysler Citroen Corvette Daihatsu Daimler Dodge Fiat Ford Honda Hummer Hyundai Jaguar Jeep Kia Land Rover Lexus Lotus Mazda Mercedes-Benz MG MINI Mitsubishi Nissan Perodua Peugeot Porsche Proton Renault Rover Rover MG Saab SEAT Skoda smart Ssangyong Subaru Suzuki Tata Toyota Vauxhall Volkswagen Volvo Other British Other Imports Total

2009

47 357 51 6,130 53 4,167 2 866 96 3,664 3 97 1 32 2,351 20,951 4,673 10 1,885 1,173 55 1,705 1,588 434 28 2,569 3,211 12 1,638 343 4,522 34 5,759 409 69 3,099 0 0 611 1,668 1,554 370 19 139 684 0 8,361 15,600 8,802 2,030 56 109 112,087

% market share

0.04 0.32 0.05 5.47 0.05 3.72 0.00 0.77 0.09 3.27 0.00 0.09 0.00 0.03 2.10 18.69 4.17 0.01 1.68 1.05 0.05 1.52 1.42 0.39 0.02 2.29 2.86 0.01 1.46 0.31 4.03 0.03 5.14 0.36 0.06 2.76 0.00 0.00 0.55 1.49 1.39 0.33 0.02 0.12 0.61 0.00 7.46 13.92 7.85 1.81 0.05 0.10 100.00

2008

0 626 95 9,625 132 7,047 24 2,079 419 6,173 2 313 7 368 2,789 26,490 7,734 8 1,784 757 266 2,007 3,327 914 42 4,175 5,232 0 2,516 1,263 4,666 34 8,883 582 115 7,609 0 0 929 2,631 2,341 592 157 346 992 0 8,487 21,676 13,141 2,339 101 262 162,097

Year to date (YTD % market share

0.00 0.39 0.06 5.94 0.08 4.35 0.01 1.28 0.26 3.81 0.00 0.19 0.00 0.23 1.72 16.34 4.77 0.01 1.10 0.47 0.16 1.24 2.05 0.56 0.03 2.58 3.23 0.00 1.55 0.78 2.88 0.02 5.48 0.36 0.07 4.69 0.00 0.00 0.57 1.62 1.44 0.37 0.10 0.21 0.61 0.00 5.24 13.37 8.11 1.44 0.06 0.16 100.00

% Change

0.00 -42.97 -46.32 -36.31 -59.85 -40.87 -91.67 -58.35 -77.09 -40.64 50.00 -69.01 -85.71 -91.30 -15.70 -20.91 -39.58 25.00 5.66 54.95 -79.32 -15.05 -52.27 -52.52 -33.33 -38.47 -38.63 0.00 -34.90 -72.84 -3.09 0.00 -35.17 -29.73 -40.00 -59.27 0.00 0.00 -34.23 -36.60 -33.62 -37.50 -87.90 -59.83 -31.05 0.00 -1.48 -28.03 -33.02 -13.21 -44.55 -58.40 -30.85

2009

%market share

2008

%market share

% Change

Get these figures first every month! New car sales figures revealed at CarDealerMag.co.uk on the fourth working day of every month. CarDealerMag.co.uk | 65 CarDealerIss12.indd 65

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tail light

Sub-Prime Time I

’m always careful that the columns I write for Car dealer aren’t an advert for First response, so I’m concerned that this may come across as such. The thing is I want to make a factual statement, and can only be confident of my own company’s abilities and strength within this market at this time. Non-standard finance for cars, bikes and light commercials is still available today, and while I can’t speak for other lenders, First response is able to offer strong and dependable funding lines throughout 2009 and beyond. This is not the message I’m hearing from the press, and in fact I’ve read quotes from the major news agencies which states categorically that non-standard finance is unavailable – this simply isn’t true. of course we’ve all seen the headlines about the cash flow difficulties that some non-standard providers are facing. dealers have also cut back on advertising spend to save money and have almost stopped advertising finance availability. As a consequence many non-standard customers believe they can’t change their car. This is a problem (or perhaps an opportunity) because the non-standard population is growing in this economy, and they think there’s nowhere for them to obtain finance. To my knowledge, there are a couple of non-standard providers that are continuing to lend as normal and who are also able to take up the additional volumes that will arise as a consequence of other provider’s difficulties. However, from a personal point of view, while I’m proud that First response is strong and capable even during a recession, I won’t let this pride cloud my views on maintaining our business focus and values. I could simply ‘open the doors’ to all the large dealers and be inundated by applications which would adversely affect the service we provide, but generate a huge increase

‘Evidence suggests that those dealers that are continuing to advertise finance availability are generating good levels of additional business and attracting customers.’ in new business volumes. However, we will continue to focus on providing an excellent service to mainly small to medium-sized dealers, and in this way support our current partners and market during a difficult time. dealers need to know they have finance providers that are dependable, and if they are assured of this they can advertise this fact to their customers. At a time when we have a growing population that feels unable to obtain finance, we need to get a clear message across to them that finance is available and that they can change their cars. our own evidence suggests that those dealers that are continuing to advertise finance availability for customers with financial difficulties are generating good levels of additional business and attracting new customers. So, it might be worth reconsidering your advertising spend and approach. Spread the word and attract new customers from a growing population that needs finance. This does sound like an advert, but in uncertain times you should only state what you know to be true.

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

CarDealer.

PO Box 227 | GOSPORT | PO12 9DE [ISSN 1759-5444] Tel: 023 9252 2434 | www.cardealermagazine.co.uk

Editorial Director James Baggott E: james@blackballmedia.co.uk T: 023 9252 2434

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Contributors Chris Jervis, dan Harris, Mike Askew, dave Timmis, duncan Chappell, Simon Evans and Nicola Linnington Thanks to... Justine Hoadley, Tim Marlow, Tim Naylor, Linda Baggott and Bernard McGranaghan

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0115 946 6370

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

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PI ay m w ro is H ea f on gh iv ce ni u Dr ran U hro su ich e t In rw abl l No vai a ly on

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