Car Dealer Magazine: Issue 27 by Blackball Media

CarDealer. Issue 27 | June 2010 | CarDealerMag.co.uk | £3.50

[ Car Dealer Power – Last chance to have a say : p23 ]

Driving the future of the motor trade

we’re at it again...

911 for 2011 how we plan to turn these forecourt rejects into a supercar for Ben by the end of the year

CarDealer

attack of the apps

hot hatches

Does your dealership need an iPhone App? Our guide reveals all

We name the best and worst ever! Do you agree with our choices?

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start Issue 27 | June 2010

BEN is not only a fantastic charity, but it’s OUR charity. By that I mean it’s the motor industry’s, and every day it steps in to help those with a connection to our trade who have fallen on hard times. Having seen what it does with our own eyes, we never think twice about raising a bit of cash for BEN when we can. As our Bangers4BEN escapades last year showed, fundraising doesn’t have to mean sitting in a bath of beans. We like to try and have a bit of fun at the same time, so what could be better than an attempt to buy a supercar in aid of a good cause? That’s the reason you’re looking at two scrapheap dodgers on the cover instead of a shiny new car. Ok, so our snapper Dean Smith has made even these cars look pretty, but there’s a reason they’re here. You see we’ve got a plan – and it involves flogging them, and others, for a profit until we’ve got enough cash to buy a Porsche. Yes, really. The full details on our most ambitious project yet are on pages 40-43, but while I’ve got your attention I’d like to make a request for help. We do not pretend to be in any way professional retailers like you, so ANY help or advice you can give us in our quest for turning

cars into cash for BEN would be appreciated. We need to know what to buy, what to avoid and how to sell them – and if you’ve got any cheap part-exes you could let us have for a knockdown price that we could sell for a profit we’d love to hear from you! Give me, or my colleague Dunc, a buzz on (023) 9252 2434. LAST CHANCE! NEXT month we’ll be publishing the results of our first ever Car Dealer Power survey. Hundreds of you have been online to CarDealerPower.com and told us what you love and loathe about the car manufacturers you represent. But it’s not just your car makers you’ve been rating. Both the independent and franchised dealers among you have been telling us about the suppliers you think are worth doing business with too. The closing date to get your opinions to us is May 21 and if you haven’t yet taken the time to give us your feedback, we’d really appreciate it. To show our gratitude we’ll even enter you into a draw to win part of our £2,400 worth of prizes. And don’t forget, anything you tell us in the survey is 100 per cent confidential – we don’t even ask you to give us your name! Find out more on page 23.

SALES PROCESS IT’S the most fundamental part of what you do every day, but our special Sales Process feature isn’t trying to teach you to suck eggs. It’s about best practice and the companies that can help add profit to your bottom line every step of the way. Whether that’s by pricing part exchanges accurately so you don’t lose money, advertising your stock in the best possible way or making sure you offer paint protection to every customer, the Car Dealer Guide to the Sales Process aims to offer you some assistance. Also this month, we’ve had a chat with the firm that developed the Car Dealer Magazine App for the iPhone. Boss Russell Berry explains why dealers can’t ignore the importance of this new media and gives you some ideas on how you can utilise it in your business. Enjoy the issue…

James Baggott, Editor

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ignition

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Feedback

Electric future

Issue 27 | June 2010

Your views on our stories Renault opens its order books

Top results

JCT600 reveals bumper 2009 profit

Porsche exclusive Maker’s bespoke plans

Interview

Daksh Gupta chats to Car Dealer

18 20 21 23 26

Big Mike On The Spot Comment Car Dealer Power Finance

forecourt 28 31 33 35 37

BMW X5 Audi RS5 Alfa Romeo Giulietta Cult Car: Ferrari 288 GTO Sales Legend: Civic

features 38

Hot hatches

911 for 2011

The best and worst ever... Our ambitious challenge for charity

Apps in detail

Why you should take Apps seriously

The Sales Process

Our in-depth look at the sales process and the companies that can help out

Glass’s Guide

‘Ok, so we know this probably looks like an attempt for Car Dealer to put a Porsche 911 on the drive. And you’d be right. But we’ll also be doing it for a very worthwhile cause.’

A look at pricing’s move online

68 71 73 74 77 79 80 82

Auctions Right Click Dot Com Recruitment Trader Directory Suppliers Guide Used Cars Sub Prime Time

[ 911 for 2011: p40 ]

Reach more buyers

...sell more cars

with classified listings that reach 2million web visitors per month on great websites such as www.carpages.co.uk and www.channel4.com/4car with Smart Banners on the web that include your actual cars for sale on Banners and Skyscrapers

contact info@skupenet.com or 0208 610 6103 to include your vehicles today

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feedback Your comments via email at james@blackballmedia.co.uk| From our website at CarDealerMag.co.uk | And from Twitter: Follow editor @CarDealerEd

Social media gets you talking... Guest blog: Rob Queen on Twitter

Link: bit.ly/robqueen BEFORE I reply, I should stress that I am no expert, so my views should be taken with a pinch of salt. They are mainly theories, with no research to back them up. Unlike in the US, where the likes of Scott Monty have done an amazing job of changing the way social media is used in the automotive world, not many manufacturers in the UK have a large, and more importantly, active presence on the likes of Twitter/ Facebook. I have seen many dealers that have now got their toe in the water, but nobody that is really swimming. And the majority of those seem to have only got involved because they are told they should do by similar viewpoints to the one above. In my opinion, there are many factors why car dealers have not yet fully embraced or had success with social media, the main issue being that nobody is really sure on how it should be done. Social media is still a new thing, so no car dealer has really mastered the art of using social media channels to increase their sales, directly or just by raising their company profile, or handle customer service. When one dealer/ manufacturer has cracked the nut, others will follow. Anon, via CarDealerMag.co.uk I WANT all my sales reps to have a business Facebook page! The Johnny Londoff sales reps (in the US) who have Facebook pages are selling two to three units a month by posting hard to find pre-owned units… we have had some pre-owned units that have sold in hours of taking them in trade. We have not begun to touch the surface of the power of social media assisting Johnny Londoff Chevrolet sell more new and pre-owned cars and trucks with high customer satisfaction scores. It’s a win win for all: customers, sales reps and managers and… oh yes, the dealer! ElizabethL, via CarDealerMag.co.uk

Don’t be scared of Twitter & Facebook

Link: bit.ly/gforces LISTENING to consumers – whether they’re our customers or not – has been so helpful in our efforts to understand what they expect from their online and showroom experiences. The opportunities continue to open up as our experience in this space grows as well; customer service, additional communication lines, strengthening our off-line efforts, etc… Eric Miltsch, via CarDealerMag.co.uk GOOD advice and I agree with Tim’s views on the potential value of social media for the automotive world, but just as important is the need for effective ‘listening’ of what is being said in the broader market about the brands, the cars, the owner experience etc, and that isn’t all just about your own dealership or its local audience. This broader view doesn’t come from just setting up your own Twitter or Facebook page, but from effective monitoring across every digital channel of what the hot topics are (positive and negative) for the main

From the Twitterverse OUR Rolls-Royce feature went down very well with readers last month – more of you than ever got in touch via Twitter and our website to say how much you enjoyed it. Here’s what some of you had to say: This story is fantastic, I just had to comment! I have seen the video, the magazine and the online article too, ALL very good! I do not envy you guys for putting yourself through this, but, what fantastic reading. I have been a subscriber since last year and this is by far

the best thing you have done. I run a prestige dealership, dealing with cars such as these and my clients found it very entertaining too. I look forward to your next adventure! Christopher Stanley, via CarDealerMag.co.uk The video is great btw! Maybe you should extend the concept: Toyota IQ? Via @carpunk We can lend you an iQ for a sleep-in feature if you like mate? Via @valvo (Toyota PR)

There’s little point in the Autocar/ olde style top gear ‘lets trundle them around the block’ tests. Via @jonbradbury RR should have thanked you for finding a new USP - it works as house! I’’m sure people will soon take out mortgages for a Ghost! Via @thefirstgear What an awesome cover! Nice work! Via @AWBriefing Great article! Looked like a v long night! Ha! Via @EcoHeatCool

Get involved. Follow the editor on Twitter @CarDealerEd or @CarDealerMag to join the conversation brand (and your competitors) and applying this to your own marketing and customer engagement campaigns – turn their negatives into your positives and combat their positives with more targeted messaging to show you are better. As Tim says, none of this happens overnight and just playing at it can often cause more problems than it can cure! Stewart Niblock, via CarDealerMag.co.uk

Post-scrap plans knocked

911 for 2011

Aston Cygnet to set trend

Link: bit.ly/91142011 I WOULD watch out for that Audi, don’t think you will make much margin if those problems realise themselves…. Darren Porter, via CarDealerMag.co.uk THIS is a great idea best of luck with it, I’ll be watching with great interest! Simon, via CarDealerMag.co.uk

Link: bit.ly/postscrap I FORCASTED that the end of the scrappage scheme would lead to confusion for the customers, with no collective aggreement by the manufacturers. The Nissan offer is clear, and easy to follow, and is supporting British industry when it needs it most. Ron Gwilliams, via CarDealerMag.co.uk

Link: bit.ly/astoncygnet WE WILL certainly see many more luxury small cars but the Cygnet (especially when specced up to £50k) will surely be an extreme example. I would add the Lexus CT200h to your list. Hopefully, premium brands will also do some more moderate downsizing, not just city cars. For example, a Bentley version of an Audi RS5 would be interesting. John McGregor, via CarDealerMag.co.uk

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Renault opens its order books for electric vehicles Customers can register ‘pre-reservations’ on firm’s special website

RENAULT has started taking pre-reservations for the first raft of electric cars due in the UK next year. Interest in the zero-emissions vehicles can be registered on the firm’s special website. This does not fully commit customers to buying an EV when they become available. Instead, it lets early adopters get on to the priority availability list when cars are introduced in their market. As the launch date for the cars nears, customers will be contacted to see if they’d like to set up formal confirmation to buy one of the zero-emissions models. Importantly, in the run-up to that launch, they will be kept fully informed about ongoing plans – which, in the UK, will start next year with the electric Renault Kangoo van. This will have an 850kg payload and a 100-mile range. The following year, the Fluence electric saloon car will be launched. This is similar in length to a Ford Mondeo and will be another ‘serious’ electric car offer alongside Renault Alliance partner Nissan and its LEAF. Renault also plans to offer the Smart-style Twizy electric city car in 2011. A Renault spokesman told Car Dealer that network plans are not yet fully confirmed for the roll-out of electric vehicles – but discussions are well advanced. ‘Partner Nissan already has a strategy, as the LEAF comes to market sooner. But our

Hill

Net gains

Have you mystery shopped your firm’s response to emails?

The Renault Fluence will be one of the first electric cars from the manufacturer dealers will be kept fully informed when we formalise our strategy,’ said the spokesman. Initial EV dealers are expected to be centred around the three ‘Plugged In Places’ regions – London, Milton Keynes and the North East. Milton Keynes, for example, has already committed infrastructure including 430 charging points, with free electricity and free EV parking. Pre-orders for production models is planned to start around the Paris Motor Show in September. There, production versions of all the cars will be shown, as Renault’s electric car future in the UK rapidly approaches. By 2020, the company reckons 10 per cent of all new cars sold will be electric powered. This is why it is investing €4bn into their development, with the creation of a four-car EV range. [RA]

SEAT wants to expand its dealer network SEAT is looking to bolster its dealer ranks in the UK to 125, Car Dealer can reveal. The manufacturer, which is currently represented by 110 dealers, added eight sites around the country during 2009, but the marque is pushing for more. A spokesman for the manufacturer said: ‘The net effect last year meant we added eight new dealers but lost two to three. We have a number of open points around the UK that we’re currently looking to fill. These are mainly in or around large cities – London in particular.’ The manufacturer has recently opened sites in Leeds with JCT600 and

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Liverpool but, like many car makers, finds it tough to fill sites in large conurbations. The cost of setting up these locations can be expensive, but the spokesman did say ‘assistance was available’. ‘Our results in the recent Auto Express Driver Power survey certainly help make the franchise look attractive,’ added the spokesman. ‘We’ve got some exciting products, like the new range of sporty diesels in the Leon and Ibiza, and we’ll be working hard to get a good result in the Car Dealer Power survey too as this is important to us.’

his month, I want to highlight the issue that many dealer groups face once they have spent serious time and effort (and money) establishing a web strategy – how can you make sure that the initial contact the customer makes through your website is followed up? If you believe this is unlikely to affect your business, you may be surprised – recently, I was told by a large dealer group that approximately 40 per cent of their web leads never even got acknowledged, and at Codeweavers we ourselves have forwarded test emails to numerous sites asking for more information. The results were staggering – where we did receive a response (and this only happened 65 per cent of the ‘If the phone rang time), the average time to for more than respond was more than 24 24 hours and hours. Compare this to the no-one answered, recent CAP Gemini report stating that the standard I would imagine customer response time management needs to be nearer four hours, and you can start to would be jumping see that there could well be up and down.’ a problem here. Think about it – if the phone rang in the showroom for more than 24 hours and nobody answered, I would imagine that senior management would be jumping up and down! Emails and web leads shouldn’t be treated as any less important. Also, remember that these leads can come at you at any time. Recently, Codeweavers had a new milestone, with the record for the highest online finance balance being reached – it was for a customer with a £32,000 balance looking at a used range Rover, and the finance proposal was submitted at 2.20am! Before you ask, he wasn’t drunk, and the deal was successfully concluded. I know that this customer was delighted with the service received, and with the way the deal was expedited at such an early hour. As with this example, many customers today are time-poor. One way to check that your business is successfully acting upon such requests is to send a ‘test’ email from a specially set up account (such as Googlemail). Send an enquiry to your business and see how well (and how quickly) people respond. If the ground rules are laid out beforehand and your sales team are aware that this ‘mystery shopping’ is going ahead, then everyone knows where they stand. If you need our help in any way, just pick up the phone.

Who is Martin Hill? Martin is commercial director at Codeweavers. Learn more about how he can help you at Codeweavers.net or call 0870 443 0888.

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dashboard Dealers’ post-scrap plans lacking, say researchers REsEARCH into dealers’ post-scrappage plans has found many are missing a trick. Now the successful scheme has finished, traders must find other ways to incentivise customers into the showrooms – but some are doing this better than others. An rts researcher telephoned 50 dealers posing as a potential scrappage customer, with a qualifying vehicle, enquiring what deal they could offer him. Richard Wells, rts MD, said: ‘We expected to be told scrappage was over, so it was not a surprise to have that confirmed at every single dealer contacted. ‘What did come as a surprise, though, was the lack of a positive response of any kind to keep the customer interested. If dealers want to build on the momentum generated by scrappage, our litmus test suggests that many sales teams still have a lot of work to do.’

Mountune kit fills void left by sold-out RS500 Dealers can offer tuning kit upgrade to boost Focus RS to 350bhp FORD has sold all 101 UK-bound Focus RS500 models – but dealers will still be able to capitalise. That’s because the Blue Oval is now offering the RS500 engine upgrade as part of a £2,000 dealer-fit kit. This will enable selected Ford car dealers to ‘create’ 350bhp Focus RS models, using parts developed by Mountune. What’s more, as they’ve been fully tested by Ford, car warranties will be unaffected. To standard Focus RS models, the kit adds on a series of upgraded parts: • Larger intercooler and air filter box • Larger diameter exhaust downpipe • Higher-capacity fuel pump • Uprated software calibration Mark Simpson, Ford Britain marketing director, said: ‘The MP350 kit has been developed to meet some of this additional demand and allow enthusiasts with cars in standard tune to enjoy even greater performance, without endangering their warranty.’ The Focus RS500, incidentally, is

GADGETS

‘The Focus RS500, incidentally, is officially Ford’s fastest-selling new car ever.’ officially Ford’s fastest-selling new car ever. The entire allocation was sold out within seven days – Simpson

said the firm had ‘five times more customers than we had cars for’. It’s been some task allocating stocks to UK Ford RS dealers, too. In the end, the firm decided to divvy up the 101 cars based on each dealer’s share of Ford Focus RS sales. This suggests the MP350 RS upgrade kit, which costs £1,995 including VAT, should prove pretty popular…

...sponsored by car gifts and gadgets website Caagis.com

Get up to speed with your typing SO who really has got the fastest fingers at your car dealership? Are you a two-finger typer? Or a multidigit specialist? Well now you can really find out with this seriously cool gadget. The USB Speedometer plugs into your computer and works out just how quickly you’re bashing out the order forms. The faster you type the faster the needle moves around the clock! It even keeps a daily record so you can see if you’re getting quicker… or slower. £19.99, caagis.com MOBILE phone expert Motorola has launched two sat nav devices – the TN550 and TN765 – and they’re packed with intuitive technology that really works. Understandably for a mobile phone maker the ability to sync seamlessly with your handset via Bluetooth is very good. It downloads contacts from compatible phones for easy dialling and can even read out text messages. Better still, using voice commands you can send a pre-recorded text message back! This doesn’t work with iPhones though. Another clever function is its ability to let you choose ‘trusted contacts’ who can find out where you are by texting you. Your sat nav takes over and automatically sends a text back with your current location and where you’re heading. But again, only with compatible

phones. Destinations can be input using voice commands. In fact an impressive 80 per cent of the unit’s functions can be accessed via voice. Motorola has put a lot of thought into the mapping software. The widescreen 5.1-inch display always shows a map on the screen even when you’re in menus. In map view you also get a miniature overall bird’s eye look at your route which can be handy to gauge how far you’ve got left to go. This display can be changed to show a multitude of other read outs such as current speed, distance travelled and loads more. The speed camera spotting technology is excellent and the TN765T we tested also has the ability to guide you around traffic jams, tell you the weather, flight arrival times and navigate you to the cheapest fuel. This information is downloaded by making a minutelong phone call through your synced mobile phone to a

national rate number. You get a free 90-day trial with the unit, then these live services cost £29.99 a year after that. You can also opt to have the unit hard-wired into your car (from £100) giving you complete control of your phone’s music through the sat nav screen with sound played via your car’s speakers. £259.99, Motorola.com THEORETICALLY a Formula 1 car creates enough down-force at high speed to allow it to drive upside down. Ok, so this isn’t quite Fernando Alonso’s Ferrari, but this remote control car can drive on the ceiling! Using an in-built fan system the Gravity Defying Car creates enough suction to let you drive it upside down. Or, if you’re feeling less adventurous, flick a switch and terrorise the cat on the floor instead. £29.99, iwoot.com

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dashboard Car dealers can think about retirement again BUSINESS owners are once again able to think about retirement as the economy comes out of recession – but there is still a long way to go, warns Clifton Asset Management. Around 77 per cent of owners reckon their retirement is further away now than it was a year ago. Sounds disastrous? Well, this is actually an improvement – three months ago, four-in-five owners were delaying plans. The chief reason for this delay, said 55 per cent of owners, was tougher trading conditions. A fall in property and pension values is far lower down the list – less than one-in-four cited this as the biggest reason for their delay. Neil Greenaway, MD at Clifton Asset Management, said: ‘How people view their retirement prospects is a crucial part of our survey, so a fall – albeit small – in the number of business owners who see retirement moving further away has to be good news. We are now officially out of recession and no doubt this affects how people see their retirement prospects, although the wide variations between different parts of the country highlight how some regions are performing better than others.’ The picture is indeed inconsistent: 90 per cent of businesses in the East Midlands reckon they now have longer to wait until they can retire. In the South West though, that figure is just 68 per cent.

Golden garage inundated GOLDEN Garages inaugural winner Kinghams of Croydon says business is booming after winning the award. The Seat car dealer reports the visit by Vicki ButlerHenderson has seen it quickly become ‘inundated’ with enquiries! Owner Keith Kingham said: ‘We were obviously thrilled to have won the award. It’s a great honour and a source of real pride and excitement for us all. But I don’t think any of us could have foreseen the scale and immediacy of the impact that winning the title would have on our business. We’ve literally been swamped with calls from people wanting to book all makes and models in for a service. It has been amazing.’

Share watch

JCT600 announces profits rise in 2009 JCT600 has announced turnover for 2009 of £465m – which has led to buoyant profits of £8.2m for the year. Used car sales drove the performance, and were up an ‘exceptional’ 13 per cent over 2008. Some 48 JCT600 sites and 1,350 staff contributed to the performance, and also helped reduce costs while focusing big on customer care initiatives. JCT600 finance director Nigel Shaw said: ‘2008 was particularly tough for the car industry, but we successfully weathered the storm and believe that the worst is now over. ‘During the last year, we have strengthened our position by reducing costs and implementing creative marketing initiatives, with a particular focus on improving our online presence, as well as building our used car stocks to take advantage of the impetus provided by the scrappage scheme.’ JCT600 is continuing to

Despite the recession, group manages to make gains on 2008 as ‘worst is now over’ grow as well: Audi dealers acquired last year were bolstered last month with the acquisition of three further Audi car dealers in Boston, Lincoln and Grimsby. John Tordoff, chief executive of JCT600, said: ‘We were able to establish a strong platform from which to further expand the group and we took the opportunity of adding the prestigious Audi

marque to complement our existing offering as well as increasing our geographic coverage.’ And the picture for 2010? ‘We expect the addition of these established franchises to have a significant impact on further growing our sales.’ Backing this up is a ‘best week ever’ performance in March: JCT600 sold 632 retail cars with a value of more than £10m…

...in association with ASE-global.com

Market pauses for thought post scrap A

pril has proved a positive month for the majority of the listed stocks with a slight polarisation of results, albeit with there being very few press releases to justify price movements. Trading has been generally thin, with people holding their breath for both an indication of the first quarter’s trading results and how the retail environment is behaving post-scrappage. Looking at the year-to-date position, the current top performer is Pendragon which has risen 25 per cent during 2010, albeit with all of that gain having effectively occurred during April. Given the lack of official announcements this represents speculation over future trading performance and represents a return of the gains made during January. Lookers has continued its strong share price performance so far in 2010, producing slow and steady gains. Market sentiment is weighted towards Lookers as a result of the published focus on aftersales and it remains the UK dealer group with the second highest market capitalisation after Inchcape.

‘We will obtain greater clarity over relative performance within the next few weeks as indications of all-important ﬁrst quarter trading start to leak.’ Inchcape also saw steady gains during April, bolstered by the geographical spread of operations and the expectation that the remainder of Europe will recover faster than the UK. HR Owen also increased in share price during April. The big loser during the month from the established listed businesses was Vertu which saw a steady decline in share price. As a result of having a financial year ending in February, Vertu is yet to release full year financial statements, however the news is expected to be positive. In spite of this and a small acquisition announced in Scotland, the total company market

capitalisation remains below balance sheet net asset value. In fact, depending on the final financial results for the year, the market capitalisation may well be below the net asset value after writing off all capitalised goodwill. This is in marked contrast to other listed businesses that stand at a significant premium to their net asset value even with large goodwill balances already capitalised. April also saw the debut of Cambria Automobiles plc as a listed stock. During April the shares have fallen by circa 20 per cent from their initial listing price with the shares still finding their feet. We will obtain greater clarity over relative performance within the next few weeks as indications of all-important first quarter trading start to leak. This will be supported by data on post-April retail sales which will decrease current uncertainty over the impact which the removal of scrappage and the showroom tax is likely to have on trading for the remainder of 2010. If you have any questions on the above, call me on 0161 493 1930. Mike Jones, ASE director

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dashboard Gforces firm brings out iPhone App TIGER Commerce has launched its free new iPhone App to help improve car dealers’ efficiency on the move. The new ‘mCommerce’ App brings greater control to dealers’ online parts and accessory arms, giving them 24/7 control. Through it, dealers can access and respond to real-time data, for instant response – all through their iPhone! The Gforces-developed App is the first eCommerce platform to launch such a comprehensive offering.

Apps and you, p44

WinWin signs up new chairman LEAD management guru Michael Jackson has joined WinWin World as chairman in a major coup for the firm. The founder of e-Goodmanners takes on the role in his latest highprofile career move. WinWin MD Nigel Pates said: ‘No-one could be more qualified.’ Mat Hutchin is also director of sales. Why did he join? After a decade in the industry, he said: ‘WinWin is the first company that has everything the retailer needs in one place as a solution.’

New sales director for Mercedes-Benz MERCEDES Cars UK has said Mike Whittington will become sales director from June. He fills the vacancy created by the promotion of Simon Oldfield to MD of customer services. Whittington, who joined Mercedes three years ago, has worked at Peugeot, Toyota and Lexus. Stay up to date every day at CarDealerMag.co.uk

Porsche’s new strategy to create more exclusivity

PORsCHE is embarking on a new strategy to bring greater personalisation to its cars and better profits for dealers. The firm has bought its high-line options scheme under an umbrella offer – Porsche Exclusive – and is using the super-special 911 Sport Classic to promote this refocus. Porsche Exclusive chief Boris Apenbrink explained to Car Dealer the new strategy would be offered to customers through three business fields: Porsche Exclusive, Porsche Tequipment and Porsche Small Series. ‘Porsche Exclusive is the factory offer that we can fit to new cars. This is ultra-exclusive options, over and above the usual line of factory fit options.’ Here, Apenbrink explained, really extreme whims can be catered for. He lists leathercovered sat nav systems and trim so bright you need to wear sunglasses while driving as two examples! However, the world is not completely the customer’s oyster here. All Porsche Exclusive options still have to go through the

Booming demand CATERHAM is having to up production to full-capacity levels in order to meet booming demand for its cars. This is in response to calls from dealers to shorten delivery times which are currently standing at three-four months for some of its sports cars.

‘This model is an example of just what is available with Porsche Exclusive.’ same validation process as regular optional extras. This is to ensure they stay legal and still provide the usual Porsche quality and reliability. It is a key tool Apenbrink says car dealers can use to further drive the appeal of the operation.

Tequipment? Those are the options customers can buy at Porsche dealers, for retrofitting to models. Examples here include roof boxes and snow tyres. Small Series, meanwhile, is the ultra-special range of limited-production series cars Porsche is reintroducing to its line. There have been Small Series cars for several decades, exampled Apenbrink, but they haven’t really been promoted too strongly. ‘We plan to change this –

Could the Aston Martin Cygnet set a new trend?

and the 911 Sport Classic is the reintroduction of this special line.’ This model is being used as an example of just what is available with Porsche Exclusive. Porsche is already upping promotion of Exclusive and Techquipment lines with bespoke brochures. This should, in time, increase uptake and improve margins for dealers – both on new cars and in aftersales. [RA]

A 911 for 2011, p40

ASTON Martin might be on to a winner with its controversial Cygnet city car, says one industry expert. ‘The new car market is set for a size and prestige revolution,’ says Network Automotive boss Colin Bruder. ‘The Mini has paved the way for this as a mainstream hatchback that frequently carries a £20k invoice price, but now we are seeing further steps.’ Driving this are cars such as the Audi A1, Citroen DS3, potential sub-1 Series BMW and, yes, the Aston Martin Cygnet. ‘These are prestige small hatchbacks that will carry price tags around 40 per cent higher than a comparable mainstream car. Customers will be asked to pay a hefty premium for a prestige brand and, I believe, will do so.’ This will bring to an end the trend that’s been in place since the 1920s, where customers linked a car’s size with its prestige.

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Photo by Action Images

Castrol has renewed its commitment to top-flight football with the announcement that it will be a major sponsor of both the 2010 and 2014 FIFA World Cup™. Castrol Professional – a division of the company which provides lubricants and aftersales improvement services to the franchised dealer network – will be using these deals to raise awareness and drive profitability for its customer base.

Stay ahead of the game

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interview

Marching on Since taking over at Marshall Motor Group, Daksh Gupta has been snapping up dealerships. Here, he tells JAMES BAGGOTT about his plans for further expansion

t’s been a busy few months for Marshall Motor Group chief executive Daksh Gupta. Since taking over the family-owned firm at the end of 2008, the economy has been plunged into recession and the car industry has been on a rollercoaster of a ride. But that hasn’t stopped Gupta putting his ambitious growth plans into motion. While many car dealers were struggling he was aggressively snapping up dealers into the Marshall fold. Some 13 businesses have been added in just 12 months and Gupta is open about the fact he hasn’t finished yet. Here he talks to Car Dealer about his plans.

What are your hopes for 2010?

Name Daksh Gupta Job title Marshall Motor Group chief executive Age 39 Family One son Drives Jaguar XKR convertible Lives Buckinghamshire CV Marshall chief executive since 2008; Previously managing director of Ridgeway Group; Franchise director at Inchcape; Chief operating officer at Accident Exchange.

Continue the progress we’ve made in the last year and primarily focus on our vision to be regarded as the best motor retail group in the UK. For me that is concentrated on a number of key points, those being: customer satisfaction, operational excellence, relationship with our business partners and making sure we’re a great place to work. If I’m doing something that does not fit in with those priorities then we shouldn’t be doing it.

incremental because our records internally show that in the years before scrappage we were taking annually about 250-300 over 10-year-old cars in part exchange. In 2009 we took in more than 2,300 so how anyone could believe scrappage is not incremental is beyond me. For us scrappage was a huge success.

What about the market in general for 2010 – are you concerned about it? No, I’m not really, to be

Do you think it should have been extended or did it end at the right time? I don’t see why you can’t

honest. Quarter one for us – and most people, I expect – has been excellent. Quarter two has the potential to be tricky and challenging on the back of the election. When the date was announced of the election we saw a drop in the region of 16 per cent in orders. Then June will bring the World Cup and that, in my experience, can be a bit hit and miss as when games are on at the weekend the order take does drop. Then we’ve got the lack of scrappage that we’ve got to get used to as well. I’m very optimistic about 2010 though. I think we’ll see fleet companies come out and purchase again and that will help.

On the election theme, what steps would you like to see the new government take to help dealers? We have a policy at Marshall that we don’t comment on politics so I’d prefer not to get into that one please.

What about scrappage then? How did that treat Marshall as a group? Oh, scrappage was excellent. I’m a little surprised that some people in government didn’t believe that scrappage was

have scrappage there on a more permanent basis. Our average sale price on scrappage was about £15,000 so if you work out the VAT the government would have generated as a result of those sales, and the whole benefits to the environment as well, the scheme was clearly self-funding and better for the environment too. I can’t see why you can’t have it in place on a permanent basis.

What about your thoughts on the showroom tax – is that affecting Marshall in any way? I think it’s a little early to say to be honest. Order take has slowed down in April but then you’ve got Easter in there, so it’s difficult to make a judgment at this stage. I think the concept of what the legislation is trying to do, as in encourage people to buy more eco-friendly cars, is a good thing, but do I genuinely think it will stop people people buying the car they want to drive? My honest opinion is I don’t believe that to be the case. Just look at the 4x4 market in the first quarter after the snow we had – it increased substantially, that makes people think twice. If

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‘Whether you like it or not, right now conversations are taking place about your business online, be that on Twitter or Facebook. You can either ignore it at your peril or you can embrace it.’

people want to drive the car they want to drive, a showroom tax is not going to stop that.

What about the recession – are we out of it in the car market yet? I don’t believe we are. We limped out of recession and I do think quarter two and three and the rest of the year are going to be difficult. It’s a shame we can’t track order rate with the various manufacturers. We like to track registrations, but order rate would give you the true underlying market. I do think 2010 will be challenging.

What about Marshall as a group – will you continue acquiring dealers? We enjoy excellent relationships with our partners. And we are in lots of discussions with various manufacturers about different growth opportunities. You can expect us to be acquisitive this year and we are currently evaluating several opportunities, but we’ll do that only with the blessing of the manufacturer, when it meets our business plan requirements and when we can find a property solution. But the simple answer to your question is yes, we will continue to grow this year.

Is it a good time to be growing? Yes, I think so. I think it’s a fantastic time to be growing. If you look at some of the businesses out there to be bought, they represent really good value. Are there any brands you’d really like to represent? There are a number we don’t currently represent and we would dearly love to represent those partners. We are in discussion with all of those manufacturers and as and when the opportunity comes up we’d like to grow with them. I’d rather not get into which ones. The moment you start naming manufacturers I think that’s a little unprofessional personally. You don’t need to be a genius to work out which ones they are though.

What about the brands you currently represent – is there one you’re quite passionate about personally? I’m passionate about all of the brands we hold and wouldn’t say there’s just one I favour. We have got different ones that are performing at different levels.

What about personally? Is there a brand you feel an affinity towards? I must admit, having owned several Porsches, I do have an affinity towards Porsche. Having bought one in the past from a franchised dealer, the product is just fantastic. The 911 is a timeless, classic car in my opinion so I’m quite passionate about that brand. We haven’t got a Porsche franchise at Marshall – but I wouldn’t mind one though!

What about Marshall’s performance at the moment? In terms of 2009 we were ahead of the industry average. We haven’t had our AGM so I can’t give out specific numbers, but I would suggest we are upper quarter in terms of our performance.

Ok, so on a more general topic, what importance do you place on the internet? The internet is a massive area of focus for us. We have made a significant investment here. We’ve spent tens, if not hundreds of thousands of pounds on the whole web thing. If you’re not focussed on the web, you’re not focussed on your business. I was in the States recently at a convention and over there 30 per cent of all vehicles are sold on the web. I’m not sure what the stats are here, but I do know that if you’re not taking the internet seriously you are going to be left behind. There is a hell of a lot more we could be doing. Social networking, for example, is something we’re taking very seriously. We need to look at Twitter and Facebook. In America something like 25 per cent of enquiries to a dealer’s website comes from social networking sites – and if the UK market does end up imitating that you’ve got to look at it as an incremental profit opportunity. Whether you like it or not, right now conversations are taking place about your business online, be that on Twitter or Facebook. You can either ignore it at your peril or you can embrace it. We’ll have a dedicated person for social networking to deal with this. There’s an argument of ‘what happens if someone hijacks it and slates you as a company?’ Well, I see that as an opportunity to turn that customer around.

What are your thoughts on green cars – is Marshall geared up to cope with the shift to electric and hybrid cars? This is the biggest change to our industry for many years. I don’t think we have any idea as to the changes we’ll have to adapt to. I don’t necessarily have a view as to whether the future will be hydrogen, hybrid, chip fat or electric – but what I do know is that it is a revolution that will come to our industry and it will be here before you know it. At Geneva it was clear there are a large number of alternative-fuel vehicles that are about to come on to the market. We need to think about how we’re going to maintain these vehicles as some of the cars will need to have a special kit and the equipment to do this costs anywhere between £30-70,000. Can dealers afford this? What about the training requirements? What about the parts? How will the warranty work? How long will the batteries last? It’s hugely exciting, but I have no idea what to expect and the scary thing is, it is literally just around the corner! [CD]

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big mike

Fluffy was getting fruity but I couldn’t work out why R

emember the old saying ‘every dog has its day? Well, this month, I’d like to introduce you to my best friend – Fluffy – and a story of how he, most definitely, had his day… Fluffy is my pet Rottweiler, so called because he isn’t cute, and he certainly isn’t fluffy. I think they call it irony, though some people do still look at me agog when I tell them his name and point out the bleeding obvious – that he isn’t, in the slightest bit, fluffy. Guys, I know… Anyway, Fluffy’s main role in life is to preside over Big Mike’s Motors when the gates are closed. One of the reasons I’ve never had a car stolen or vandalised from my lot is, I’m sure, because of Fluffy’s rather commanding presence, for while I know that there’s nothing he like’s more than being tickled on the tummy while being teased with doggie treats, to the uninitiated Fluffy is a monster. He’s all bared teeth, woof-woof-woof and snarly snarly on the face of it because he believes his own PR – he thinks Rottweilers are there to be scary, so he lives up to his reputation like a good ’un. So it was quite a surprise, a couple of weeks ago, when I arrived at the lot and jangled my keys in the gate as per usual. Normally, this automatically makes Fluffy come bounding out of his kennel, to show the world he can leap nearly, but not quite, as high as the gates themselves, while making a hell of a racket. The neighbours love it. But on this particularly sunny spring morning, Fluffy made no appearance at all. I was quite concerned for his welfare, so it came as some relief when I found him, snuggled up asleep beneath the tailgate of a Citroen Xantia in the far corner of my lot. For the rest of the day, he was as right as rain, so I put it down to a one-off. That was until the next day, when the same thing happened. Fluffy was snuggled up against the same car again, peaceful as you like. The car in question had come in the previous week on a part-exchange against a Saab 9-5 estate, and was one of the traditional ‘px to clear’ cheapies that you stick at the end of your press advertisement, sold as seen on trade terms. It wasn’t a bad old thing, and being an estate it was probably not going to be too difficult to sell to a family buyer on a low budget. Indeed, within a day of the ad going live in the paper, £795 ono, I had a young couple come round to look at it – the lady was heavily pregnant, and they’d decided it was time to move up in size from their rotten old Ford Ka (nasty things, but that’s a topic for a different day). The thing is, they never got anywhere near it. As I walked them towards the Citroen, Fluffy went beserk, heckles up, baring his teeth and barking at them like crazy. In the style of News of the World

Poo Corner is looking bare, Big Mike sold his Favorit for an ‘obscene’ amount

reporters at a Premiership footballer’s cocaine orgy, they made their excuses and left… A similar thing happened two days later, when a local plasterer came to look at the car as a potential substitute for his works van. Built like the proverbial outdoor brick building, he was trembling at the knees by the time I got Fluffy to calm down again. Clearly, I had a problem to deal with. In desperation, I called the car’s previous owner to ask if she knew why Fluffy was so protective of it – and suddenly it all fell into place. The lady in question was a pedigree dog breeder, and the Xantia’s previous life was spent carrying upmarket bitches around from one breeding house to another in pursuit of puppy potion. A bit like the photo i saw in Heat magazine last week of a girl band emerging from an Audi A8… As a result, to Fluffy’s sensitive nostrils, the Citroen smelled like it was on heat, and he saw it as his opportunity to make a contribution to the canine gene pool. Having already removed that option from the poor old chap early on in his life, I couldn’t find it in my heart to sell his dream woman to a likely punter, especially when I reviewed the previous evening’s CCTV coverage to find that Fluffy had been, well, you get the idea... If nothing else, that would have put me off buying it. So I did the only humane thing – took the tailgate off, wrote the car off as a loss, and turned the loading bay into Fluffy’s new sleeping quarters. Anyone want to buy a second-hand kennel? 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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Peering into the lives of the motor trade...

On The Spot

Name: Nige O’Shea (Most people think it’s short for Nigel, but it’s not – it is actually Nige). Age: 44 Lives: Malpas, Cheshire.

with the weather!

Any family? Married to Anne and have three children. What do you drive? BMW 520d Auto. What was your first job? Washing cars at a small lot on Saturdays – full time I joined the RAF after school as an aero engine technician.

Europe, the Middle East and hopefully soon to be Africa.

Who do you work for now? MD of Professional Inspirations – an automotive training company.

What are your job’s biggest challenges? Managing the generation of new business while delivering the work we currently have – it can be easy to neglect the future when you are very busy today. You should always be prospecting as these are next week’s/month’s sales.

What does this involve? Running the business day-to-day, generating new business and delivering training throughout

Any downsides? Only if my wife asks – having to spend weeks out in the Middle East, staying in hotels and putting up

What was your first car? Triumph 1500.

standard, except when my wife rings, then it plays Londonderry Air recorded by my son on his keyboard.

How much do you earn? I earn what I’m worth – working for myself there is no such thing as a basic salary and commission! What was the first record you bought? I’m really showing my age now – Nottingham Forest – Do you have an average We’ve Got The Whole World In day? Either in the office Our Hands! writing workshops, speaking to clients or delivering a training What is the biggest challenge workshop where I’m up early car dealers face? I believe preparing myself and the room ready for the delegates to arrive. it’s themselves. Customers can choose where and when they Then the first hour is normally buy their next car. Therefore, the hardest, winning their sales executives need to be very attention and interest. The rest of the day is then what I do best, proactive in following up every delivering relevant material that enquiry that is generated. inspires! What would be your number What newspapers/magazines one tip for car dealers? Look after every customer. do you read? The Times. What is the most expensive thing you’ve ever bought? My car. What’s your mobile phone ring tone? Sony Ericsson

And finally... what’s your motto in life and business? The smarter I work, the luckier I get! Luck is winning the lottery, being successful in business is about working smarter.

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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comment

Can dealers learn anything from WeBuyAnyCar.com? Terry

Hogan F

irst let’s get it out of the way ‘any any any any any any webuyanycar.com’. You’ve all heard the tune, and maybe heard how successful this business has been over the last 12 months in buying cars direct from consumers. So can you replicate this model as a dealer or dealer group? No matter how annoying you find the adverts, you better get used to them, because this business is here to stay. They are buying your potential part-exchanges, and every customer who sells them a car is usually a buyer too. Remember the good old days, you opened the door at the weekend and sales just happened? Ill informed buyers armed with Parker’s Guide moping around the used car pitch hoping for a good deal. Well, they’ve been consigned to the History Channel. With the advent of the web, buyers and sellers have never been so well informed, so how do you combat a business with a catchy tune, peak-time TV advertising and national distribution points? If you are a Vertu or an Arnold Clark and have that distribution and marketing power, well with a bit of work, you can. The valuations given online by the ‘wewill, wedo, wemay’ buy your cars of this world are not fantastic, and most of the retail stock is sold to dealers anyway. Most retailers should therefore be able to compete on the price given and service, if not geographical spread. So why not take a leaf out of their book and

They might have an annoying advert but you can’t deny WeBuyAnyCar.com’s success

‘Remember the good old days when you opened the door at the weekend and sales just happened?’ offer to buy any car. With retail stock set to become more scarce over the next few months and years, the dealers who have the right quantity and quality of stock will be the winners. According to Glass’s Guide editor Adrian

Rushmore: ‘Dealers can expect a major reduction in the supply of one and two-yearold used cars this year and beyond due to the protracted downturn in new car sales.’ Dealers who react now have a chance of establishing a foothold in the market to buy cars. Brave souls may even go the whole hog and buy any car. But why not? How many customers do you know who sell a car don’t go on to buy another one? And I bet my right arm you’d all like a few more people through the door. Now if only you could think of a catchy tune...

1R IRU 1HZ &DUV

&DOO XV RQ RU (PDLO WUDGH#PRWRULQJ FR XN 'RZQORDG RXU EURFKXUH ZZZ PRWRULQJ FR XN EURFKXUH

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STAY AHEAD You want your website to shift gear and put you in front. But to do that, it needs to rank highly with Google and other search engines. And be easy to use. We’ve been building bespoke websites exclusively for the motor industry since 1999. A number of our sites for dealerships have won awards. And being automotive professionals ourselves, we know what your site needs to help you sell more cars. Find out more by calling 0845 2508820 or visiting www.ukwebsites.net Email: support@ukwebsites.net

Part of

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CarDealerPower.com This is your last chance to have your say and win some great prizes in our Car Dealer Power survey

L CHAAST TO NCE H A SAAVE Y!

his is your last chance to have your say on the manufacturers you represent! So far the survey is revealing some very interesting results – with some surprise manufacturers languishing at the bottom... If you want to make sure your voice is heard – good or bad – you need to log on to CarDealerPower.com before May 21 and register your opinion. Whether you’re a dealer large or small we’d like you to take two minutes out of your hectic schedule to give us some feedback. Car Dealer Power is about finding the best car manufacturers to represent and the best suppliers to do business with. And don’t forget, as a thank you for taking part we’ve got an incredible £2,400 worth of prizes up for grabs. Don’t worry though, Car Dealer Power is 100 per cent confidential as we want you to be free to really tell it how it is. All we ask for is your mobile number so we can call you and tell you you’ve won a prize!

EMPOWERING DEALERS Your details will NEVER be passed on to any other party and what you say will remain completely anonymous, so feel free to slate or rate your car maker and suppliers. Part one of the survey is for franchised dealers and part two is for both independents and franchised dealers too. The easiest way to take the survey is by visiting CarDealerPower.com which will take you

straight to the online version. Or you can tear out the following two pages or fill out the one printed on the reverse of the address sheet that came with your magazine and send it back to us. Remember, your feedback will help shape the motoring industry for the better – but hurry! We need your feedback by May 21 for it to count towards the results which will be revealed in the next issue of Car Dealer Magazine!

More than £2,000 of prizes to be given away! First Prize...

Three days in an ASTON MARTIN DB9… worth £1,400! YES, by filling in this survey you really can have one of the most beautiful supercars ever made sat on your drive for THREE DAYs! Our friends at AstonExperience.co.uk are offering one lucky respondent the chance to get behind the wheel of a DB9. You’ll be able to enjoy the incredible £120,000 supercar’s V12 on your favourite roads, stretch out every one of its 470bhp, and marvel at the spine-tingling sound that hefty lump makes. It’s glorious! The hire will be for three days, mid-week, and includes collection and delivery to your home or place of work and insurance. AstonExperience.co.uk offers a range of cars from the supercar manufacturer for hire – the DB9 costs £1,400 for three days. There are some stipulations to this prize though. You must be over the age of 25 and have no more than six points on your licence. An excess of £2,000 is also levied on the hire insurance policy too. The AstonExperience.co.uk fleet includes an AMV8, Vanquish, Vanquish S, DB7 and the stunning DBS. Give them a call on 0845 9000 007 (see what they did there), to find out how you can get one of those on your drive now!

Second Prize... A Halfords bundle… worth £600! OUR favourite High street store has put together a cracking bundle of prizes for the second survey drawn out of the hat. If you’re the winner, you’ll get your hands on the latest Garmin Nuvi 1690T sat nav unit worth £320, a Karcher pressure washer worth £150 and a Halfords Professional 150-piece socket and ratchet set worth £200! The Garmin sat nav unit is one of the latest to hit the shelves and features a wide touchscreen, traffic jam spotting technology as well as maps for the UK, Europe and Republic of Ireland. For more information on these log on to Halfords.com.

Third Prize...

Fourth Prize...

Adrenaline Voucher from MotorSport Vision… worth £180! EVER wanted to get behind the wheel of a seriously fast car on a track? Or how about throw a car sideways as you fly through the mud on a rally circuit? Well, if you’re the winner of our third prize then you could be doing it very soon! You can pick one of five experiences at either Brands Hatch, Oulton Park or Bedford Autodrome. The Adrenaline Voucher entitles you to choose either of the Race Master, M3 Master, Porsche Master, Rally Master or Mud Master experiences. If you want to book now, call 0870 950 9000.

Stunning Jenson Button F1 canvas… worth £175! IF YOU love Formula 1, last season was pretty special. Not only was it one of the most exciting for some time, but we had another British champion – Jenson Button in the Brawn GP car. To mark that occasion, CarsInPrint.co.uk has produced 100 of these stunning canvas artworks of Button in his world championship winning car. The print is 76cm x 50cm and is mounted on canvas with printed edges. The piece costs £175 and will be sent to the fourth survey drawn out of our hat. For more, CarsInPrint.co.uk or call 07970 020 895.

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CarDealerPower.com The easiest way to fill in the survey is online at CarDealerPower.com Car Dealer Power is 100 PER CENT CONFIDENTIAL. Anything you say in this survey will NEVER be passed on to anyone else and will remain securely with Car Dealer Magazine. However, if you want to be entered into the draw to win one of the four prizes detailed on

the previous page we need your mobile phone number – this is so we can call you and find out where to send the prize! If you represent more than one manufacturer you can fill in this survey again online by visiting CarDealerPower.com, photocopy these pages

or email james@blackballmedia.co.uk for a copy. All requests will be treated confidentially. Any comments you wish to make will be most welcome. These may be used in the magazine but will be attributed anonymously. Thanks for your help!

Your Mobile Number (needed to be entered into prize draw)…………………........

Part 1 1. Which car manufacturer do you hold a franchise for? (If it’s more than one, please feel free to fill in the survey again online or ask for another via email)  Abarth  Alfa Romeo  Aston Martin  Audi  Bentley  BMW  Cadillac  Chevrolet  Chrysler  Citroen  Corvette  Daihatsu  Daimler  Dodge  Fiat  Ford  Honda  Hummer  Hyundai  Infiniti  Jaguar  Jeep  Kia  Land Rover  Lexus  Lotus  Mazda  Mercedes-Benz  MG  MINI  Mitsubishi  Nissan  Opel  Perodua  Peugeot  Porsche  Proton  Renault  Saab  SEAT  Skoda  smart  Ssangyong  Subaru  Suzuki  Toyota  Vauxhall  Volkswagen  Volvo  Other (please name)

2. How would you rate your manufacturer with regards to its finance offers?  Poor  Average  Good  Excellent  Faultless Comments?

3. How do you rate the warranty your manufacturer offers? Does it cover everything it needs to and is it easy to administer?  Poor  Average  Good  Excellent  Faultless Comments?

4. How would you rate your car manufacturer on its aftersales support?  Poor  Average  Good  Excellent  Faultless Comments?

5. How do you rate your car manufacturers’ marketing overall? Consider the support it offers you, the offers it comes up with and the marketing schemes it develops:  Poor  Average  Good  Excellent  Faultless Comments?

6. How do you rate you car manufacturers’ brand awareness?  Poor  Average

 Good  Excellent  Faultless Comments?

7. How accessible is your car manufacturer? (Consider whether you can get hold of them when you need to? Do you get to speak to the right people at the right level?)  Poor  Average  Good  Excellent  Faultless Comments?

8. How do you rate your car manufacturer with regards to the internet? (Consider the support it gives you here, the way it feeds leads down to you and the quality of your manufacturer’s own site.)  Poor  Average  Good  Excellent  Faultless Comments?

9. How do you rate the supply of cars from your manufacturer?  Poor  Average  Good  Excellent  Faultless Comments?

10. How do you rate your manufacturer’s forward planning? (With regards to product launches, offers)  Poor  Average  Good  Excellent  Faultless

Comments?

11. How do you rate your manufacturer’s stock levels?  Poor  Average  Good  Excellent  Faultless Comments?

12. How do you rate the requirements your manufacturer imposes on you as a dealership? (Are they over intrusive and want the moon on a stick, or are they quite grounded and realistic?)  Poor  Average  Good  Excellent  Faultless Comments?

13. What do you think of the bonus structure put in place by your car manufacturer?  Poor  Average  Good  Excellent  Faultless Comments?

14. Finally, how would you rate the return on investment for your manufacturer?  Poor  Average  Good  Excellent  Faultless Comments?

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Part 2

MOTOR TRADE SUPPLIERS This section is all about finding the most popular suppliers to the motor trade – from advertising to web design – we want to know which supplier you use in each of these sections and why. We’re trying to gauge their popularity by measuring the amount of dealers using that supplier AND how good they are. We’ll only be naming the best in each category. If the supplier you use is not mentioned, please tell us who they are. 1. Warranties  1. WMS  2. Auto Protect  3. RAC Warranties  4. AA Warranty  5. Mapfre Abraxas  6. Car Care Plan  7. Warranty Wise  8. Other (please name) How to you rate them?  Poor  Average  Good  Excellent  Faultless Comments?

2. Web Design  1. Autotorq  2. Gforces  3. Codeweavers  4. SpidersNet  5. Viper Image Media  6. Silverdisc  7. Uk Websites  8. Other (please name) How to you rate them?  Poor  Average  Good  Excellent  Faultless Comments?

3. Online advertising  1. Auto Trader  2. Motoring.co.uk  3. eBay Motors  4. Motors.co.uk  5. Carpages.co.uk  6. Pistonheads.com  7. Makeandmodel.co.uk  8. Netcars.co.uk  9. Buyyourcar.co.uk  10. Reallygooddomains.com (stable of sites)  11. Compareclickcall.com  12. Other (please name): How to you rate them?  Poor  Average  Good  Excellent  Faultless Comments?

4. Finance  1. Santander  2. Blackhorse  3. Carlyle  4. Close MF  5. First Response  6. Barclays  7. Jigsaw  8. Alphera  9. Other (please name): How to you rate them?  Poor  Average  Good  Excellent  Faultless Comments?

5. Lubricants  1. Castrol  2. Mobil 1  3. Chevron Havoline  4. Other (please name): How to you rate them?  Poor  Average  Good  Excellent  Faultless Comments?

6. Recruitment  1. JGA  2. Steele & Dixon  3. REP  4. REMIT  5. Motor Industry Recruitment  6. Top Car Recruitment  7. Perfect Placement  8. Other (please name): How to you rate them?  Poor  Average  Good  Excellent  Faultless Comments?

7. Provenance checks  1. HPI  2. Experian  3. Other (please name): How to you rate them?  Poor  Average  Good  Excellent  Faultless Comments?

8. Used car valuations  1. HPI Valuations  2. Glass’s Guide  3. CAP  4. Experian  5. Other (please name):

How to you rate them?  Poor  Average  Good  Excellent  Faultless Comments?

L CHAAST TO NCE H A SAAVE Y!

9. Auction company  1. BCA  2. Manheim  3. Auction4cars  4. Wilsons  5. Paragon remarketing  6. Dealerauction.com  7. Mytradeauction.co.uk  8. Other (please name): How to you rate them?  Poor  Average  Good  Excellent  Faultless Comments?

10. Lead generation  1. Hook Logic  2. FindsYou.com  3. Autotrade-mail.com  4. Motorati  5. MFL-direct.co.uk How to you rate them?  Poor  Average  Good  Excellent  Faultless Comments?

11. Dealer Management Services and technology  1. Dragon2000  2. WinWin World  3. Gemini Systems  4. Kalamazoo-Reynolds  5. Autoview  6. Pinewood  7. Dealer Management Services  8. Portfolio  9. Other (please name): How to you rate them?  Poor  Average  Good  Excellent  Faultless Comments?

Please send completed surveys to: Car Dealer Power, PO BOX 227, Gosport, PO12 9DE CarDealerMag.co.uk | 25

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finance Finance news Car Dealer rounds up the latest stories from the world of car finance

Which? Car slams dealers WHICH? Car says car dealers are ‘taking customers for a ride over interest on finance scheme deals’. The consumer body carried out an undercover investigation and says that not a single salesperson revealed the total cost of interest on car finance. As a result, it has reported its findings to the OFT. Peter Vicary-Smith, chief executive of Which?, said: ‘When you take out a mortgage, the bank or building society has to clearly state APR rates up front, and explain terms and conditions fully. We think car finance deals should be conducted in the same way.’ What are your views on the findings? Get in touch using the details on page six to let us know.

Bridford enjoys record quarter BRIDFORD motor finance has announced its best-ever first quarter after securing £7.2m of funds. This comes on the back of a record month in March, where £3.5m of funds were secured! It means the company is well on track to beat last year’s £25m record – which, you guessed it, was a recordbreaking year. Growth is, says owner Tim Marlow, down to the flexibility of its products and taking on big new contracts with national car dealers selling Ferrari, Aston Martin and Rolls-Royce. ‘Last year we enjoyed considerable growth and we have carried on in the same vein with our best first quarter figures – and what is most pleasing is that the final month of the quarter has been our best ever.’ As such, Marlow is expanding offices across the UK. Oracle Finance, p57

Deal finder

Budget family cars

Skoda Octavia 1.4 S You can’t really say better than VAT-free! Skoda is making this very offer on all Octavias, and combining it with finance from Skoda Solutions to create an exceedingly attractive PCP package. The basic 1.4 S is, well, a bit on the basic side, but in return boasts a list price of just £10,781. For a car this big, roomy and practical, that’s little short of amazing. With a £1,900 deposit, it works out at £199 a month over 35 months, with a final guaranteed value of £3,131. The APR rate is 8.1 per cent. This genuinely could be just the car growing families on a severe budget could be looking

for. It is appreciably larger than the other two in the back and throws in the all-important air con. Just don’t expect it to be fast. 80bhp doesn’t go far – and the underpowered nature also means economy lags behind the other two. CO2 emissions over 160g/km will also eat up some of the savings from that top deal…

Model: 1.4 S 5dr Price: £10,781 Engine: 1.4-litre, 80bhp 0-60: 14.2s Max speed: 107mph MPG: 40.4mpg CO2: 167g/km

Kia cee’d 1.4 1 Kia is using its exceptional seven-year warranty to promote the sister car to the Hyundai i30, the cee’d. The 1.4-litre 1 variant has a basic price of £12,595 on the road: if the customer puts down £1,382, Kia UK will match this with a £777 contribution, on a PCP deal. This works out to be 36 payments of £227 a month, with a minimum agreed future value of £3,769. The APR rate is seven per cent, meaning less will be paid on interest than the Hyundai – and remember, customers will still have the attraction of four years’ warranty remaining at the end! The cee’d is a bit sportier than the i30, but

surprisingly, has a less powerful engine – even so, performance is nearly identical, economy is better and CO2 emissions dip below 140g/km. The interior has a racier, darker look but otherwise there’s little in it. Apart from, yes, the warranty. It’s a fascinating choice…

Model: 1.4 1 5dr Price: £12,595 Engine: 1.4-litre, 89bhp 0-60: 11.2secs Max speed: 112mph MPG: 48.9mpg CO2: 139g/km

Hyundai i30 1.4 Classic Trade & Upgrade is Hyundai’s promotion to capitalise on the post-scrappage UK marketplace. This bought a huge wave of new customers to the brand – and the company is aiming to snare further with a beefy £3k trade-in discount on the i30. For £12k, the basic 1.4 Classic still includes air con, iPod stereo and electric front wheels. The 1.4-litre engine is decent too, putting out 108bhp for acceleration to 62mph in 11.6 seconds. More importantly to these buyers, it averages more than 46mpg. The finance deal available is pretty sharp. Through Bristol Street Motors, a customer’s

£999 deposit is combined with the £3k Trade & Upgrade allowance, to leave £8,001 to finance on HP. Over 60 months, this equates to £159 a month, with an APR rate of 8.9 per cent. Terrific value family motoring (and styling a bit like a BMW 1 Series to boot…).

Model: 1.4 Classic 5dr Price: £12,000 Engine: 1.4-litre, 108bhp 0-60: 11.6secs Max speed: 116mph MPG: 46.3mpg CO2: 145g/km

Valuing Service – Valuing You! ervice – Valuing You!

the first choice for First theResponse UK’s smallFinance to medium is the sized first dealer choicemarket. for the UK’s small to medium sized dealer market. 26 | CarDealerMag.co.uk CarDealerIss27.indd 26

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...in association with

So you say you don’t do sub-prime finance?

hy not? That’s the question I ask car dealers who utter the classic one liner: We don’t do sub-prime. There are many answers to this question but they mostly boil down to the same thing: a lack of understanding. Maybe these dealers don’t understand sub-prime or what it really is. They certainly don’t understand what it would mean to their business if they found out more about sub-prime finance or looked around for help. Some car dealers invest time and effort in keeping abreast of the market beyond their postcode area but many don’t. The enlightened dealers are better prepared to take advantage of new ‘We have a opportunities because they see them coming long saying that before the rest. “bad things The fact that you are happen to good reading this magazine is proof that you are among people” and this those who take your is especially true business seriously enough to investigate the market in in a recession.’ which you operate. Just for you here is a quick ‘heads up’. During a recession the number of people who can easily access high street lending facilities goes down considerably and continues to stay down for many months (sometimes years) after the recession has officially ended. Put another way, the need for sub-prime finance will increase significantly and will continue to increase for a long time to come – you may want to be involved in servicing that growing market. We have a saying ‘bad things happen to good people’ and this is especially true in a recession as people are put on shorter hours, or worse, made redundant by employers who have to reduce costs. So, unlikely as it is – if there is anyone reading this magazine who still doesn’t want to ‘do sub-prime’ then I’d really urge you to call me so I can ask ‘why not?’

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

Tel: 0844 8730819 Tel: 0844 8730819 Web: www.frfl.co.ukWeb: www.frfl.co.uk CarDealerMag.co.uk | 27 CarDealerIss27.indd 27

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[Forecourt]

Road tests in association with

Small change

Even knowledgeable dealers will find the X5’s changes hard to spot – but there are some!

BMW X5 Price: £46,310 Engine: xDrive40d SE Power: 306bhp, 599Nm 0-60mph: 6.6s Max: 147mph MPG: 37.7 recommends ESP Formula 5W-30 top up packs for this vehicle. See Mobil-1.co.uk for more details

MW dealers sell 5,000 X5s a year: It is a profitable model indeed for the firm’s UK retailers. And it was quizzing those annual buyers that set the template for the mid-life facelift of the luxury five or seven-seat SUV. What did they want? Plenty more, it seems, of the same… Thus, the new X5 looks almost exactly like the old one. There are no metalwork changes, no dramatic new grilles, not even radically resculpted headlights. Nope, it’s modified bumpers front and rear, changed headlight lenses and the odd new metallic colour. Inside, there’s still less to note: without turning on the ignition, you won’t even spot the new-for-2010 sat nav and iDrive set-up. Discreet? That would be an understatement. It’s not a BMW cop-out, though. See, with this ‘Life Cycle Impulse’, plenty more has been happening below the surface. All the engines are new. The automatic gearbox is new. The suspension has been revised. A whole host of technical features have been added on. Appearances sure can be deceptive: The 2010 X5 is well worth a closer look. The key focus is on diesel. BMW dealers sell 95 per cent oil-burning X5s, with four in five of those being the xDrive30d variant. This gets a sprightly new engine, now with a healthy 245bhp for 60mph in a vibrant 7.6 seconds. It can do 130mph if you choose the SE; the M Sport, with higher-rated tyres, pushes on to 138mph. It is not slow. Nor inefficient. The new xDrive30d averages 38.2mpg and has CO2 emissions of just 195g/km. There has not yet been a non-hybrid model in the UK with such low emissions, which is why the X5 jumps straight to the top of the class here. BMW dealers with tax-conscious buyers will find this a big boost. That’s not the fastest diesel, though. The speed

honours are held by the xDrive40d, whose twin-turbo six-cylinder engine shoots it to 60mph in just 6.6 seconds. Pretty impressive. That’s what 306bhp can do for you – yet, despite this, the model can still average an implausible 37.7mpg. Even this doesn’t top the 200g/km CO2 mark, either. Like its xDrive30d counterpart, it is Euro 5 compliant as well. On the road, this engine is superb. The new eight-speed automatic ensures it is always in the right gear (not that you notice it shifting ratios), while eye-opening low-down torque provides nearinstantaneous shove to the throttle. It is a large, heavy SUV that still responds with speed, even at low revs. Fittingly, BMW has revised the handling so it is sportier, too. The firm has transferred the X5 M version’s electronic settings in the four-wheel drive system. This means it has a racier feel in corners, with more power being sent rearwards for sports car-like sensations (yes, really). It can be chucked around like a machine half the weight and height. Dealer feedback to BMW means the steering is now better as well. Standard Servotronic assistance makes it lighter at parking speeds, in response to customer complaints. And the optional Active Steering settings have also been changed so it’s more natural. Standard on all X5s is leather and Xenon headlights (which now have distinctive daytime running lights, to help mark the 2010 model out). Prices have risen, with the range starting at £43,795 for the xDrive30d, but BMW still reckons it is better value. The only questionable buy is the niche xDrive50i V8 petrol. Overall, it’s hard to knock BMW’s approach with the X5 facelift throughout. Some faces are better left as they are; if you can make what’s beneath the surface better too, then that’s all to the good… [RA]

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F L c A w

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- An Award winning motor Insurance facility with generous commission paid on every policy - Highly competitive monthly premiums fixed for up to three years - Unique shortened question set enabling customers to quote in less than 40 seconds - Lead generation tool enables follow up of quotations as soon as they are requested - No need to be Directly Authorised under the FSA – We manage this on your behalf - Fully integrate with your existing site or have a branded version to match your corporate identity - Ability to re-direct fault and non-fault accident repair work back into your bodyshop For all YourCarMotorInsurance product enquiries please call Lloyd Latchford on 01844 275 555 or for technical information call Codeweavers on 0870 443 0888. Alternatively email: enquiries@codeweavers.net or visit www.codeweavers.net/yourcarmotorinsurance for further information CarDealerIss27.indd 29

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BdW^a &# I]Z WZhi d^a ^h i]Z dcZ i]Vi Vahd Yg^kZh ndjg Wjh^cZhh#

With a proven record for performance, Mobil 1 is the World’s leading synthetic engine oil. But leading in technology is only one thing; Mobil 1 goes further to boost your business performance. Because meeting the high demands of today’s customer triggers a higher demand. Mobil 1: the surest way to make the most out of your lubricant business. To learn more, visit mobil1.com

CarDealerIss27.indd 0173_M_A4_livre 1 30

7/5/10 09:31:24 1/27/09 11:07:53 AM

n g e

07:53 AM

[Forecourt]

Road tests in association with

Fired up It’s the model we’ve been praying for ever since Audi unveiled the A5 – a fire-breathing RS version

udi launched the famous Quattro 30 years ago this year. Gene Hunt, among others, is most grateful that it did. Thing is, since then, it’s not really had a model comparable with the dramatic icon. The firm continued to develop the Quattro, but when it was dropped in the 1990s, there was nothing to take its place. Oh, sure, the recent R8 has taken Audi straight to the heady heights of supercardom – but in the more affordable sector, fast Audis have been conspicuously absent. But, no longer. Here, see, is the RS5: complete with 450bhp 4.2-litre V8 that will leave a BMW M3 trembling – for half the price of an R8. In Audi hierarchy, S models such as the S5 are the discreetly rapid ones. RS versions are the hardcore performance sister cars to them – usually in a totally different league. This one is no different. Engine? The RS5’s hand-built V8 motor is basically the V10 from the flagship R8 supercar with a couple of cylinders lopped off. That, right away, should give you an idea of where this car is coming from. It’s a pleasure to use, offering the low-down shove of traditional V8s but matching the M3’s crazed highrev madness too. The redline, for instance, does not cut in until 8,500rpm. And all the way there it sounds magnificent, a deep-chested V8 rumble erupting into a fierce bellow as the revs build. As standard, it uses a seven-speed S-Tronic automatic gearbox. This has been tuned to produce relentless acceleration – 0-62mph takes just 4.6 seconds, while the ‘limited’ 155mph top speed can be raised to 174mph if you so wish. This, note, is still limited… Befitting the Audi heritage, the company has treated the RS5 to a technical overload. There is a staggering amount of advanced-level hardware here, controlled by cutting-edge software. This includes a centre differential that can send power to pretty much wherever it wants, and

diagonally-linked dampers that lead to minimal body roll. There are also hi-tech adjustable dampers, which can be profiled using the Audi Drive Select system. And… plenty more. On the road, this makes for one exceedingly accomplished and competent machine. It’s incredibly fast, of course, with the engine supplying loads of power and a rorty noise. But it’s the way this power can be deployed that really impresses. On the UK’s oft-treacherous roads, this is a real advantage. However, just be careful you don’t go too extreme on the suspension settings if you’re planning to travel on the worst of our roads – it’s pretty stiff when set up to the max… Mind you, it fares better for economy: 252g/km CO2 and 26.2mpg will win no awards, but they’re not bad given the car’s pace. But despite all this clout and ability, Audi still hasn’t forgotten one of the most important aspects: How a car looks. Hugely impressive behind the wheel, there’s no missing the RS5 on the road either. It has squared-off wheelarches that reference the famed Quattro, while there are special spoilers, wheels and – of course – badges everywhere you look. RS Audis are cult Audis, and this one leaves onlookers in no doubt about it. S versions may be subtle, but these are anything but… It can’t fail to impress us, the mighty RS5. For technical ability mated to Germanic precision and the now-familiar Audi ‘cool’ factor, it’s well up there. The noise is delicious and the looks spot-on. Thing is, do we love it like we do the original Quattro? That’s another matter. For, while it’s amazing, we can’t help but feel it’s just that bit too clinical. Not that buyers will mind. Gene Hunt is the coolest man on TV right now: clinical he isn’t, making him the perfect sop to the original Quattro. The RS5 is our way of living a little of his life in real life…

Audi RS5 Price: £57,480 Engine: 4.2-litre V8 Power: 450bhp, 432Nm 0-60mph: 4.6s Max: 174mph Economy: 26.2mpg recommends ESP Formula 5W-30 top up packs for this vehicle. See Mobil-1.co.uk for details

DAN TRENT

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Who gets your vote? It’s not easy choosing the right warranty company. Are you fed up with hearing the same old promises time and time again? Take a look at our manifesto...we guarantee that we will: • • • • • • • • • • •

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If you are looking to increase your profit margins whilst eliminating the risk of providing your own guarantee then look no further. With the help of the WMS Group, you can join the 2,500 other approved dealerships in the UK that have generated more cashflow and gained repeat business simply by implementing strategic sales and marketing techniques throughout the sales process. So, if you want to work with a proactive organization that cares about you and your business then contact our Business Development Director, Eric Stone on 07789 682502 to find out what we can do for you. !

0800 197 0321 sales@wmsgroupuk.com www.wmsgroupuk.com ! CarDealerIss27.indd 32

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[Forecourt]

Road tests in association with

Sweet Giulietta

Alfa Romeo’s Giulietta plugs a gap between the MiTo and the rest of the range, but is it any good?

hat do you expect from an Alfa Romeo? The cynics in the audience are cat calling something about iffy reliability – we can hear them from here. But put that little chestnut to one side and what do you end up with? Passion. An Alfa isn’t a sensible purchase; it’s a heartfelt one. You are supposed to get emotionally involved with these cars. To love them, in spite of it all. It’s therefore curious to discover that the multilink rear suspension of the all-new Giulietta has been specifically designed so it doesn’t intrude into the luggage compartment. In the press conference there was much talk of ‘comfort’ as well as dynamics. And the Giulietta’s engines are exceptionally efficient – the MultiAirequipped 1.4-litre turbo petrol, for example, produces 167bhp yet emits just 134g/km CO2. All of which sounds remarkably rational. Weirder still, the engineers are absolutely convinced the Giulietta’s new platform will make it the safest car that Euro NCAP has ever tested. No kidding. Straight faces and everything – including a pre-crashed production model that we could not only look at but actually get into. Who is this impostor – and what has it done with Alfa Romeo? Gladly, the Giulietta still looks good, especially in ‘8C’ red, echoing Alfa’s gorgeous Competizione supercar. Notable exterior details include the curling rear LED light pattern, ‘floating’ grill and purposeful shoulders; it neatly bridges the gap between the MiTo and the rest of the range in both size and design. The lengthy wheelbase means interior space is fair – although rear knee and headroom rather

cosy – and that suspension design has indeed left a strikingly squared-off 350 litres of boot space. Your suitcases will be happy. Metal finish trim, Italian instrument labels, flippy switches and chunky dials do the cabin ambience proud. But your fingertips will tell you some of the plastics aren’t quite in touch with class leaders. Nice effort, though. Every engine offered is turbocharged. We sampled the aforementioned 167bhp petrol, an identically endowed 2.0-litre diesel and the range-topping Cloverleaf with 232bhp ‘1750’. Even restricted to Alfa’s Balocca test track the latter felt sure-footed and fast. So it should with 338Nm of torque at 1,950rpm and an official 0-60mph time of just 6.6 seconds. But then, the diesel dispatches the benchmark sprint in eight seconds flat – while emitting a low 124g/km CO2. The Giulietta’s engine quality isn’t in doubt. With the same DNA switch as the MiTo, you can even tune the car’s responses to your mood and the conditions, with a choice of Dynamic, Normal and All Weather settings. Out on the road, immediate impressions suggest the undemanding will enjoy the Giulietta’s deft steering and decent ride comfort. But more spirited drivers will be less thrilled by its ultimate composure – outright body control is looser than the best rivals, with a tendency to shimmer over bumps and through longer corners. A sensible Alfa? Well, it left us feeling slightly cold. But maybe that’s exactly what the brand needs to sell some more cars...

CJ HUBBARD

Alfa Romeo Giulietta Price: £24,495 Engine: 1.8-litre, petrol Power: 232bhp, 338Nm 0-60mph: 6.6s Max: 150mph MPG: 37.1 recommends New Life 0W-40 top up packs for this vehicle. See Mobil-1.co.uk for details

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AT093 Plate Advert A4

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The UK’s leading online real time used-car trading network CarDealerIss27.indd 34

7/5/10 09:31:36

[Cult Car]

Ferrari 288 GTO The arrival of the new 599 GTO reminded us of a legend of garages long forgotten...

mologazione is what the ‘O’ in ‘GTO’ stands for: homologation special. This is Ferrari’s name for its most extreme road cars – those that are built only to satisfy the legislators who run the racing championships. Want to enter GT racing? Build X number of road cars first, then we’ll let you in. Mad motors are thus guaranteed. The first, and most famous, Ferrari GTO was, of course, the 1960s 250 GTO. This is the firm’s most famous model, one which made more than £15m at auction just a couple of years ago. Pretty bonkers, huh? But it wasn’t this car that Ferrari’s reintroduction of the GTO name with the 599 GTO reminded us of. In between the two cars, there was another GTO: the oft-forgotten 288 GTO of 1984. Like the 599 GTO, it was built for racing. Here, it was the old Group B sports car championship. You’ll already know of the concept from Group B rallying days; it’s a bit of a cult thing itself after being banned for being too dangerous. Group B sports cars, though, barely made it that far. The series was binned soon after the first cars turned their wheels. The two makers who signed up for it still committed their extreme machines to production. For Porsche, it was the 959. Ferrari’s, though, was the 288 GTO. A machine based on the Magnum P.I. 308 GTB, but with the wick turned right up to explosive. Out went the existing V8 engine, and in came a slightly smaller 2.9-litre V8 unit, turned the other way round in the engine bay (so, no boot space) – and, oh yeah, cranked up with two turbos. Result? 400bhp. It thus became the first road car to hit 186mph – or, in Euro-speak, 300km/h. That 400bhp figure was big news in those days, particularly as Ferrari also put the 288 GTO on a serious

crash diet. The bodywork was entirely redesigned using glassfibre and Kevlar composite panels, which shed a huge 115kg from the kerbweight. It tipped the scales at just 1,160kg. Now, you can see why it was such a beast… It was so cool, Ferrari F1 dude Eddie Irvine used to rag one around the lanes near his Irish home; given the choice of anything from Ferrari’s catalogue, it was this beastie that he chose. Considering that just 272 of them exist, you can perhaps see why; this is a connoisseur’s car. Styling is why it is not more fabled, not more of an icon. Ferrari went to all the trouble of redesigning the bodywork, but it forgot to distance itself from the white-sock 308 GTB that it was derived from. That meant non-connoisseurs overlooked it. Indeed, it would take another couple of years for a Ferrari to capture their attention – the F40 had the supercar looks lacking in the 288 GTO. It also had its engine. Yes, the powerplant in the F40 was derived from the mad motor in the 288 GTO – and when you think that any Ferrari’s heart is its engine, you can see in what high esteem this car was held in at Maranello. Today, some people – probably the same who overlooked the 288 GTO – are grumbling that the 599 GTO is not ‘really’ a GTO, but a derivation of the existing 599 M. But of course it is! The 599 GTO is exactly what a Ferrari GTO should be: the standard car on steroids, mind-blowingly extreme and something that will hopefully be truly majestic to drive. Word has it, the 599 GTO is just that. Just, indeed, as the 250 GTO and 288 GTO were, too. For now though, our eyes are on the 1980s classic. It won’t be the biggest cult you’ll ever join, but if you want a cult car that only the most knowledgeable are drawn to, join us in dreaming of owning a 288 GTO… [RA]

Ferrari 288 GTO Price: £750,000 Engine: 2.9-litre V8 Power: 400bhp, 495Nm 0-62mph: 5s Top speed: 186mph

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[Sales Legend]

Honda Civic

The car that helped turn a bike maker into a global car giant

onda’s Civic is a stalwart of the innovative Japanese company’s model range – but even so, it’s still surprising to remember what a long-runner it is. Would you believe, it’s actually older than the Volkswagen Golf? Honda launched it back in 1972, making it the secondoldest Japanese car model line still running. Mind you, if you look back at that 1972 original, you’ll see the Civic has changed a lot in that time. Sure, the Golf has grown, and is now a lot bigger than it originally was. Thus, so too is the Civic – however, unlike the Golf, the Civic has actually jumped up a sector or so in its time. In the beginning, it was actually sold as a budget supermini… This was the car that helped turn Honda from a famed motorbike maker into a recognised producer of cars, too. Small, extremely economical, yet as large inside as some bigger saloons, it was notable in particular for taking the US by storm. American buyers were already well tuned to the compact ideas of the VW Beetle, as an alternative to huge home-grown machinery. With the Civic, a far more modern and hi-tech new alternative became available: Honda even wisely borrowed VW’s USP in the marketing tagline: ‘Gets You Where You’re Going.’ And so it did, with 40mpg potential. It was a massive hit, and set the ball rolling for all future Civic generations. Success in the UK and Europe came too, which meant Honda became established as a car brand in its own right. With such honours came the need to press on – and so the Civic was replaced in 1980, with a bigger and more sophisticated machine. Then again in 1985, with a bigger and more sophisticated machine. Then again in 1988, with a… well, you get the idea. By 1992, the Civic was sleek, hi-tech, offered in multi-body options and doing great high-margin business for Honda car dealers. Repeat custom was high, and the firm’s policy of frequent updates drew many more

buyers in besides. Being a Honda dealer in this era was good news thanks to the high quality Civic. The firm fumbled the ball with the 1996 dullard, but regained distinction with the wedgy 2001 model. Here, the car gained a cult sub-following too, with the wailing, high-performance Civic Type-R version. It was the everyman’s Honda NSX, and took the screaming Honda VTEC’s high-rev fame to new highs. Which brings us to the seventh generation Civic, on sale now, and still doing sterling business for the firm. It’s built in high numbers here in the UK, and the Swindon factory is so well rated, Honda even exports cars from here back to Japan! Believe us, praise comes little higher from Japanese firms. In its near-four decades, the Civic has turned Honda from a well-known motorbike manufacturer into a worldwide giant, a genuine global player. It is a sales legend that remains a legendary Honda – we can’t see them doing a Toyota and canning this popular name any time soon. It continues to keep pace with the times, too. OK, the IMA hybrid versions are not quite on the pace of the Toyota Prius, but they’re still innovative and are supplying Honda dealers with useful green buyer knowledge. This database of customers will prove useful in the future – particularly if Honda brings its cutting edge fuel cell models to the Civic range. Meanwhile, the 240bhp Honda Type-R MUGEN – a near-£40k super-hardcore hot hatch – takes the other extreme, and then some! Even at that price, Honda is probably losing loads on each one, given how bespoke it is. As there will only be 20, collector status is guaranteed. One of the longest-running car lines still on sale, the Honda certainly deserves legend status. It’s not hard to see why it breeds such loyalty and strong repeat business. [RA]

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hot hatches

▲Renault Clio Williams

It’s the father to a bloodline of hot hatches, but it’s the original Clio that gets the nod here. The Williams was named after the Formula One team and was originally limited to 500 in 1993, but the Williams 2 and 3 soon followed. The 2.0-litre 16v lump produced 150bhp – good for 140mph – and coupled with awesome handling created an absolute classic.

▲Volkswagen Golf GTI

It might not have been the first, but the Golf GTI MKI was the hot hatch that really kicked off the craze in earnest. Arriving in 1975, it boasted a fuel-injected 1.6-litre that produced 110bhp. That was enough to fire the front-wheel drive car to 60mph in 8.7 seconds, but it was the tight chassis and superb handling that really excited.

Good! ▼Ford Fiesta XR2

It wasn’t quite as potent as the Golf and 205 GTIs, but the Fiesta XR2 still managed to excite with its driving thrills. It used a 1.6-litre, 94bhp unit to propel it to 60mph in 9.4 seconds and on to a 106mph top speed. Spotlights, black bumpers and sideskirts marked the hot hatch out with the look topped off by classic pepper-pot alloys.

▲Peugeot 205 GTI

If the VW Golf GTI kicked the hot hatch game off, the Peugeot 205 GTI took the ball and scored a cracker! It featured a 105bhp 1.6litre powerplant and later a 130bhp 1.9-litre option was added, but the jury’s still out on which is the one to have. Many say the perkier 1.6, that hit 60mph in 8.6 seconds, is the better car to drive, but the 1.9 was ultimately faster.

Citroen Saxo VTS

For many, sprightly Saxos were the Golf GTIs of their day. Just as the VW was getting old and flabby, the Saxo VTR and VTS reignited the original concept. Small, planted and potent, the Citroen pairings were cheap to insure and exciting to drive. Both featured 1.6-litre engines, but the VTR was an 8v 100bhp and VTS a 16v 120bhp. The latter was the better of the two, hitting 60mph in 8.7 seconds.

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▼Proton Satria GTI

Proton’s idea was a good one: take a humble hatchback, hand it to your sister firm to tune – which happened to be Lotus – then sell by the bucket load. Unfortunately the reality was rather different. Lotus did a good job with the Satria GTI’s handling, but buyers struggled to see past the Proton badge and although performance from the 1.8-litre was reasonable, it failed to set sales figures alight.

VW Golf GTI MK3▲

After two incarnations as legendary as the MKI and MKII GTI, how Volkswagen got it so disastrously wrong with the third generation is hard to comprehend. It had put on weight in the wrong places and didn’t perform like its predecessors. Those changes appealed to a different, family buyer – meaning the GTI had grown up, leaving a nation of hot-hatch lovers to mourn its passing.

hot hatches are the affordable answer to performance thrills but, as JaMes BaGGott explains, they vary in quality...

Bad...

Fiat Uno Turbo i.e.▲

Here’s proof that bolting a turbo on to a car doesn’t always make it good. The Uno was a funky little hatchback that was actually quite decent in some engine guises, but the Turbo was resolutely poor. Priced to compete with cracking hot hatches like the Peugeot 205 GTI, the 1.4-litre Uno lacked performance – even with a blown engine – and poor handling let it down.

▲MG ZR

It might have been one of the best-selling hot hatches following its launch – but that in no way makes the ZR a good car! The ZR was based on the awful Rover 25, featured the less-than reliable K Series 1.4 and 1.8-litre engines and quickly picked up a following from hoodie-wearing drivers. It wasn’t particularly good to drive, nor particularly quick and there are few that could ever praise its plastic-fantastic looks.

Vauxhall Nova SR ▲

If you’re really unlucky you’ll still see one of these hateful Vauxhalls knocking around a council estate near you. It’s likely to now feature ‘phat’ alloys, an exhaust that’ll shatter windows and ‘choons’ which are inaudible to anyone over 25. Problem was the SR was a terrible hot-hatch to start with – it sported an underpowered 1.4-litre, awful body kit and handled like a ferry. That’s why most are now modified: Owners are just trying to make them bearable!

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1 1 0 2 r o a 911 f By James Baggott

us having p o st ’t n o w at th t u b , k? You bet it is rn two sounds like a tough asare we talking about? well, we plan to tu a good go at it. what a Porsche 911, by 2011. simple. ish. forecourt rejects into

e know selling cars isn’t easy, but it’s hard for us journalists to realise just how hard you guys have to work every single day to make a living. That’s why for our latest fundraising plan for automotive industry charity BEN we’ve decided to find out for ourselves. We plan to meet the tyre kickers, fend off the dodgy questions on eBay and insulting offers to keep increasing our pot of money until… we’ve got enough cash to buy a Porsche 911. Ok, so we know this probably looks like an attempt for Car Dealer to put a Porsche 911 on the drive. And you’d be right. But we’ll also be doing it for a very worthwhile cause – and no-one said raising money for charity had to be boring! Most of us have dreamed of doing it – starting off with a small budget and constantly increasing it with every car sold until you’ve managed to buy the car of your dreams. So that’s the plan. We set ourselves a budget of £250 for the first car and hit the phones. Obviously we were looking to call in a few favours. We’ve

got the advantage of being a trade magazine, so unlike our consumer colleagues who’ve tried this before, we’ve got a bulging contacts book of helpful dealers and motor trade suppliers who can assist. We are in the process of sorting out a trade account with some auction houses too (if you know of one who’ll help, let us know). That’ll mean we can source our other cars from trade channels and then sell them privately to make the most money for BEN. To get started we put the call out on our website and via Twitter (twitter. com/CarDealerEd) and were instantly contacted by two dealer groups. The power of social media never ceases to amaze... Firstly, franchised dealer group M25 Audi said it was up for supplying a car. Group marketing manager Sarah Norton emailed to say they would definitely sort us out with something – they just had to find one first. And how much did they want for this car? Nothing. Amazing. Then, within minutes, we had a call from Motorpoint’s PR chief Stephen Wright who said the firm’s Auction4Cars.com trade auction website would happily donate a car to the cause too. That meant we were left in a bit of a quandary – which one to take? Who to let down? So we decided not to let down either – both had been kind enough to offer us a car and by taking only one we’d be turning

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Pictures @dean_photo

down cash for BEN. So we decided to accept both. That obviously means more work for us – but at the end of the day it’ll mean our pot for the first car we actually have to buy will be rather substantial!

THE CARS A few days later we got a call from M25 Audi saying they’d found us a car. It’s an S-reg, 1.6-litre, Audi A3 with 100,000 miles. We picked it up from the firm’s impressive Watford dealership where Darren Guiver, managing director of M25 Audi, handed over the keys. ‘Hopefully it will get you off to a good start,’ he said. ‘i am well aware of what BEN does – it’s a great cause and helping you out this way is a great way for us to get involved.’ So what tips did Guiver have to help us get the most for the Audi? ‘You need to make sure you sell it in the usual places, but it has to be privately,’ he told us. ‘The A3 is a pretty good car – it’s a great entry level to the brand for people aspiring to own the badge – you just need to make sure you polish it to within an inch of its life! It won’t hang around.’ Encouraging words. But then we had a chance to drive it and it appeared all was not quite well with the little Audi. After a lengthy drive in it Duncan reported the engine has a hesitation under acceleration, there’s a

knocking noise from what we think is the manifold, the brakes are warped and it looks like it’s been in a minor accident. There’s a big scratch on the nearside rear wheel arch, some of the paint is flaking on the front bumper and the front passenger seat refuses to lock in place, creating an ejector seat James Bond would be proud of. Don’t get me wrong – this is NOT a moan, the car was free at the end of the day and that means profit for BEN. However, our plans to sell it privately for book retail price (around £1,500) have taken a knock. In this condition we’re not going to put it up for sale in the normal way and think repair work would be throwing money down the drain. So, on the advice of our dealer friends at The Internet Car Lot, we’re going to list the Audi on eBay as spares or repairs. A full detailed listing should probably raise more money for the car on the auction website than putting it through an auction. Our next car came from car supermarket Motorpoint. At the end of 2008 the firm set up trade-only website Auction4Cars.com to dispose of the thousands of part exchanges it takes in every month. The site has been a huge success for the car supermarket group, saving it £1m last year in auction fees and selling off 17,000 cars. Traders pay no fees for buying from the site. >

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911for2011 For this feature, Motorpoint pulled a MKIII VW Golf from the website for us to sell. It’s an L-reg CL model, 1.8-litre with a moon-and-back 180,000 miles on the clock. But, despite that, it’s in awesome condition, drives brilliantly and looks pretty good considering its age. We paid for six months’ tax and it has MOT until July, but we plan to increase that to a year. Again, on advice from our friends in the trade, the £50 it might cost to get it a ticket could add significantly to the value of the car for people looking for a cheap runabout. We’ve also been advised to steer clear of eBay with this one and list it on Auto Trader and in the local paper instead at £495. So that’s the plan. On the plus side at least neither was stolen or have finance outstanding – we know that because we checked their history with HPI. Both came back clean and we plan to use the certificates as sales ammunition. The best bit about the HPI Checks was the fact we could take advantage of the brilliant seven-day free insurance offer from Aviva. It meant we were covered to drive them back from the dealers and it was all organised in a matter of minutes. Every time I use the service I’m always staggered at just what a brilliant idea it is. There’s no doubt though, this is where the learning curve takes a steep climb towards the sky. We’ve actually got to sell these two cars – at a profit. That last bit shouldn’t be too hard considering they cost us nothing thanks to two very generous dealers and thankfully I’m not completely on my own. I’m

tapping into commercial manager and former car salesman Duncan’s expertise to see us through this challenge. He has, after all, been there and done that – and seems to have already taken the bull by the horns to get us started. You can follow how we get on in future issues, but if you can’t wait until then log on to CarDealerMag.co.uk and click on the Editor’s Blog section where you can follow our progress. We’re also after as much help as possible with this feature from you. So if you’re a motor trade supplier who can give us access to trade channels to buy cars, could help us with pricing, valeting, dent repair – anything really that could increase the value of the cars we buy then please get in touch. We’re also interested in hearing from any of you that have taken in a car you’re willing to do a bit of a deal on for BEN. If you’ve got something you’re willing to let us have for a knock-down price in exchange for helping BEN and some publicity in Car Dealer we’d love to hear from you. Contact either Duncan or me using the details in the back of the magazine. We know this isn’t going to be the easiest feature to do. We’ve already received more warnings from dealers about the joys of dealing with the Great British unwashed, but hopefully we can turn these two scrappage scheme dodgers into one of Germany’s finest supercars… by 2011. The clock is already ticking. [CD]

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A Porsche 911? Are you serious?

YES, deadly. We’re huge Porsche fans here at Car Dealer and spend most of our time with our heads buried in specialist titles dedicated to the marque. We’ve already chatted to Phil Raby, the editor of one of our favourites, Total 911, and he reckons we could pick up one of the unloved 996 models of the iconic brand for around £9,000 through trade channels. Enthusiasts aren’t so keen on the ‘fried egg’ headlights of this version and values reﬂect that. If we can blag ourselves the help of an auction house and take Raby with us when we go to buy, we reckon we can find the right car before the year is out. ‘The Porsche 996 has, unfairly, gained a reputation for being a bad buy,’ Raby told us. ‘Blame the internet – tales of exploding engines are enough to scare anyone off but Porsche sold shedloads of the things and the majority have proved problem-free. If you want a super-cheap 996, go for a Tiptronic Cabriolet with a Savannah (a sort of puke yellow) interior.’ So puke yellow it is then! Along the way to the Porker we want to buy some interesting stuff too, but anything that can help us raise that cash by the end of the year will do. If you can help, give us a call on (023) 9252 2434.

What the experts think…

Chris Smith, Car editor at Glass’s Guide AN UNUSUAL choice which could net a tidy profit would be a Land Rover Defender pick-up with a canvas back. Just within your budget of around £1,500 for the next car on a Y-plate if you buy online, it could fetch up to £4,000 at a specialist auction, such as Brightwells, as current market demand is strong. Johnathan Brown, car editor at Glass’s Guide WITH the right colour and spec, the Lexus IS200 could have real profit potential. A T-plate or V-plate example should be under £2k from auction and could sell for an additional £500-£600 to a retail buyer online. Tony Gannon, BCA communications director WHEN you’re buying, set your budget and stay with it. Don’t be frightened of buying something that’s not in perfect condition if you think you can add value to it. And, when selling, make sure it’s fully prepared with full documentation. Simon Henstock, BCA network operations director AS THE idea is to trade up it doesn’t matter too much what it is, as long as it’s at the right price. But I would suggest a small engine Focus/Astra/KA/Golf/Yaris.

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technology

highly appropriate

Apps are the next big thing for the automotive industry. Here, James Baggott talks to the man behind the Car Dealer Mag App and asks how dealers can make use of the technology

ar Dealer has recently launched an App for the iPhone, iPod Touch and iPad. Downloadable from the iTunes store now for 59p, the App digests content from our website in a user-friendly way for car dealers on the go. To celebrate its launch we chatted to the team behind the App to find out how car dealers should be utilising this new technology too. App Creatives chief Russell Berry was the driving force behind our App and here he talks to Car Dealer about how it was built and what the firm can do for you.

You’ve just finished making the Car Dealer App – are you pleased with it? Yes, we’re absolutely delighted with the CDM iPhone App. The aims and objectives were very specific. Provide an iPhone App that can deliver CDM unique content in real-time, while expanding CDM user base by reaching out to the iPhone community. By meeting the aims and objectives we are pleased to say CDM have been rewarded by fantastic download figures and positive reviews.

What obstacles did you have to overcome to make it? None, to be honest. Luckily we’ve got a great team here so the entire process was a seamless one. The main hurdle with any App development that contains regularly updated information is the source of the data. With CDM we simply used their xml feeds. Once the feeds were in place we were free to go and do what we do best, create the App and get it live on the Apple Store. Because we had a full understanding of the brief at the outset CDM needed very little involvement.

What makes a good App for the car industry? Updated relevant information is king. It’s also important that the App does what the user expects. So, a car news App should primarily deliver car news and a carsearch App should allow you to locate cars quickly. Just like a website the App should reflect the company and

the services it offers. Making use of the iPhone’s unique features will help the user engage with the service or product in a unique way. Finally, an App needs to be able to deliver content quickly and in a user-friendly manner.

How important will they be to the car industry and dealers? Hugely. More than two million iPhones have been sold in the UK in the past three years. This figure is set to grow to seven million in the next two years. Since the iPhone was launched more than two billion Apps have been downloaded worldwide. This is not market penetration; it’s more like market domination!

‘An App needs to be able to deliver content quickly and in a user-friendly manner.’ It is vital that the entire car industry embraces mobile Apps. In 2009, Mobile Internet Report (MIR) proclaimed that within five years more users will likely connect to the internet via mobile devices than desktop PCs. The move away from accessing content via PC’s and laptops is already evident. Auto Trader recently stated that in January 45 per cent of visitors used their phone to access further information about a car on a dealer forecourt. The fact is, people want to access information when and where they want it. Sitting at a desk is old news.

How can car dealers use Apps to generate business? What are other dealers using them for? First and foremost dealers can simply replicate the core services of their existing website. If your website generates revenue, an App will do exactly the same. A car dealer can immediately increase stock exposure by simply allowing people to access their cars via their App. Not only can users access all the images related to a particular vehicle, they can also view any videos, get directions and call the dealer within seconds with the simple click of a button. As this new market evolves we are getting more and more dealers asking us to create Apps with additional services such as booking a service and submitting a car part exchange valuation. It’s these additional features that will all help increase a dealer’s revenue.

How do you see the car industry evolving for the mobile community? Like any major industry the car industry needs to sit up and take the mobile world seriously or risk getting left behind. It’s vital that all companies from car repair specialists to franchised dealers include a mobile plan in their overall marketing strategy. Those that jump on board will reap the

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AppCreatives.co.uk chief Russell Berry helped build the Car Dealer Mag App

rewards. Rolls-Royce have been quick off the mark with their fantastic Ghost App. It allows users to interact with the car and configure their ideal Ghost specification. This approach engages Rolls-Royce with a new type of customer while creating a fantastic PR opportunity. We also envisage companies utilising innovative in-App advertising where they will encourage users to interact with their products in an augmented virtual reality.

Paid for or free? The decision of whether to charge for an App depends on its content. CDM App currently sits at 59p to download. This is a fair price as it delivers unique content which users will not find anywhere else. As a hard and fast rule you should ask yourself if you would be prepared to pay for the App yourself and whether the biggest revenue generation is in the selling of the App or the selling of your core product or service.

Is making Apps just for Apple products a good idea? We can deliver mobile Apps for all the leading handsets, such as Google Andriod, Blackberry and Nokia. The reason everyone is so focused on Apple is because they are the leaders, and by some distance. They are streets ahead in terms of Apps available and download volumes

and this is without mentioning the iPad which is due for release in the UK this month. The main advantage of mobile Apps against mobile websites is usability. Apps are built specifically for the phone and allow users to interact with the content using the features of the phone itself. A mobile website can tell users where a car is but a mobile App can tell the user how far away that car is in relation to where they are standing at that exact moment. We always recommend doing the iPhone App first and then creating Apps for the other handsets. The consumer’s mindset is changing. Just like websites everyone expects you to have one and use Google to find it. Apple’s App Store carries the same principle. Users expect you to have an App and be able to find it in the App Store.

What got you into making Apps? My co-founder Rodney Joseph and I are both Apple mad. We brought the first iPhone as soon as it was released and have never looked back. We love the whole concept of delivering information in a way that’s quick, sleek, innovative and always with you. Our very first App was for our sister company DesperateSeller.co.uk which went live in the App store way back in July 2009. We’re proud to say that it was the first UK car classified App, way before more established

brands such as Auto Trader and Motors joined the scene. As a consequence our download figures were phenomenal. Within days we created our company AppCreatives.co.uk which primarily allows anyone from individuals to multinationals to have an iPhone App.

What other Apps have you made? We have made a variety of Apps to date. Our portfolio is now expanding beyond the car industry and into other industries such as holidays, digital photography, games, art houses and even shopping centres. It’s now the must-have marketing platform. Have you got a favourite App (apart from the Car Dealer one of course!)? Of course, the CDM is our favourite! We have created some great motoringrelated Apps so far such as Fish4cars, HonestJohn, Carenthusiast, and Bristol Street Motors and there are even more exciting ones coming in the near future. However, from a personal point of view, if I had to chose one then it would have to be the Dialcaddy golfing App. Simply because I’ll use absolutely anything to up my golf game and this seems to be doing the trick nicely! [CD]

The Car Dealer Magazine App is available to download now for 59p from the iTunes store

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CarDealer

welcome A SALES TO THE

PROCESS

s we all know, the sales process is a series of stages, each of which is incredibly important. Fail to optimise one and progression to the others will be impacted – potentially big time. It is thus imperative you look at each one separately, to ensure you really are doing the best work possible. Easier said than done in a busy car dealership! Which is why, this month, we’re doing something really special. We’ve used feedback from those who know best of all what’s involved – you guys – to split up the process and focus on best practice in each. We have spoken to an unparalleled number of experts in the field, to draw out just how they think you should be optimising things. Follow through the advice in each and you really will see big gains in sales, profits and overall staff satisfaction. We promise! It’s all because you’ll get the ball rolling: as selling a car is a series of steps, boosting performance in one will inevitably improve things in the following ones, too. It all starts with optimising the fundamental of the business – pricing of cars, with help from the experts. Then, want more people through the doors? Improve your web presence, and lead generation. Once they’re there, sell more cars by optimising the sales process and finance generation – then up profits on each of these extra sales with more add-on sales. Finish off customers’ cars to perfection with protection solutions and smart repairs. Once you put these plans into action, an improvement in business will inevitably come. But if you’re not convinced, think about what will happen if you’re not fully proficient in one or all areas. Pricing not spot on? You won’t attract the people in the first place. That will hit the effectiveness of your web presence and lead generation – and also tie salespeople’s hands if they actually get people through the doors. How willing will they then be to take on extra features? How open to the idea of an extended warranty will they be? Chances are, they probably wouldn’t even think of using you for finance: after all, if the car’s too expensive, how competitive are your finance rates going to be? Getting the process wrong really can be disastrous… But we’re trying to teach you something you already know, anything but. Just a friendly push in the direction of some firms and processes that could really make a difference to your bottom line.

Richard Aucock, Deputy Editor

inside the guide p49 Pricing

p54 Training

p61 Warranties

Why a smart workforce will sell you more cars

Peace of mind and improved margins for all

p51 Web management

p57 Finance options

p63 Paint protection

How to find the right deal for every buyer

How to make your deals shine

p53 Lead generation

p59 GAP and PPI

p64 Smart repairs

Master the art of selling for the right price How to make your site work harder The secret to pulling in more buyers

The extras that can generate big profits

Making your stock look even more tempting

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CO UK

Do all this for a little over £1 a day* …when you upgrade to

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Standard terms apply, *Actual cost of subscription £1.16 per day Price excludes VAT which is payable at 17.5% on the GlassNet licence, Your current contract will be cancelled and your new Guide contract period will be 12 months from date of sign up ,This offer applies only to Glass’s customers classified as motor trade dealerships, Minimum subscription of 1 Car Guide required to qualify for GlassNet Unlimited

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Pricing

why pricing is key to making bumper proﬁts GlassGuide.co.uk

ricing: it is a key element to get right. If you falter here, your entire proposition is at stake! Few are better placed to provide advice than Glass’s managing editor Adrian Rushmore. But it’s not as straightforward as simply picking a price that sounds tempting, he explains. ‘The first thing to appreciate is that there is no such thing as a fixed price for a used car,’ he says. ‘The price will always depend on the trading circumstances – where the vehicle is being offered for sale, and what comes with it.’ Rushmore spells out the possible scenarios: the highest prices, of course, will be for cars offered by a franchised dealer. ‘The buyer will pay extra for the peace of mind afforded by a manufacturer-backed used car programme, as well as the high standards of preparation.’ A less expensive option are cars sold by an independent. ‘Here the buyer is getting the reassurance of a warranty, albeit one less comprehensive than that typically offered by a franchised dealer.’ More reassurance than private sales: they’re cheaper, but ‘the price will reflect the likely lack of preparation, and the very limited protection offered to the buyer by the law’.

Even cheaper, and far more variable, are cars offered to a dealer for cash, and cars sold at auction. ‘There will be huge variability in quoted prices, depending on how the dealer expects to extract profit from the subsequent resale. Auctions are also influenced in a large part by who is there to buy on the day the car appears in the auction halls.’ That’s not all. Pricing is also contingent on general trading conditions – is the market buoyant or weak? – and regional price variations (for instance, the North East and North West are often the cheapest places to buy). So complicated is the pricing picture, Rushmore actually ran through the entire criteria for Car Dealer, which we’ve listed below. ‘The bottom line is that it’s impossible to get the pricing of a used car spot on,’ he said. ‘Instead, the advice is to ensure that your research takes account of all the relevant variables, allowing you to pitch the price in the right ballpark to facilitate a rapid sale and optimise profitability. Referring to an authoritative valuation provider will give you a good idea of where your car stands versus the general market.’ Here is where companies such as Glass’s come in. Experts such as Rushmore do all this every day, using their decades of experience to ensure each car is placed exactly where it should be in the marketplace. To access this experience, all you need to do is… use their services! Systems such as GlassNet Unlimited are the easiest way of doing this. ‘The valuation information provided by Glass’s – through online solution GlassNet and Glass’s Guide – takes account of data from a vast array of third-party sources, including dealers, vehicle remarketers, auction houses and fleet organisations, to ensure the greatest possible accuracy. ‘Far from being a simple, automated process, valuing is driven by the editorial team, who use their market insight and industry experience to interpret the intelligence and deliver an unparalleled service to the motor trade.’ All that Rushmore has explained here? It’s accessed directly through GlassNet, simply by entering the registration of the car in question. Access to such knowledge has never been more straightforward! When the results are so fundamental to your entire business, is it wise to use any other route? >

More on GlassNet, p66

Glass’s valuations tips ANY one, or a combination, of these variables will have an impact on the price of a used car. Furthermore, each variable can be further sub-divided to give a variation in price: a black car, for example, will generally be worth more than a green car, and a one-year-old car with three previous owners will be more adversely affected than a three-year-old car with three owners. Price is influenced by: • Age • Plate • Mileage • Condition • Service history

• MOT (if applicable) • Number of previous owners • Options • Colour • Previous repaired damage

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Web management Bluesky

Reducing marketing costs, but increasing sales Blueskyinteractive.co.uk

t is impossible to escape the bald facts about the internet: 80 per cent of your customers will begin their search for their next car on the net. This is why Car Dealer launched our famed Ewards. In short, if you want to be in with a chance of getting a buyers’ custom, says web experts Bluesky, you need to be there. Optimisation here is an essential part of the sales process, as Bluesky’s Tony Hilton reveals. His firm helps by taking a logical, businesslike approach to the whole area of internet optimisation. ‘Nice designs are all well and good, but you also need solid results behind it – otherwise, it’s just expensive window-dressing,’ he says. ‘Rather than being a pure web design company, we employ fullyqualified experts as well, to deliver the expertise and results behind it. Only these guys will know the small changes that make a huge difference to websites.’ Such as? ‘Amazon changed the shape of a button on its site; it improved conversion rates by 20 per cent…’ Whoa! This is the thinking Bluesky uses, too, which starts by knowing what customers are doing as they approach your website. ‘Research shows that people start their hunt with a specific search, such as a Ford Fiesta, then diversify into small cars to see what else is out there,’ he explains. The second time, they will start with another specific search – but then start drilling down and focusing on that car in particular. You thus want to catch them the second time around – which is why Bluesky employs five qualified professionals to ensure you do just that. There’s more to it than just being top for search engine optimisation, though. This is important, ‘but you also want natural search. One of our dealers is top for those simply entering Used Audi into a web browser. By considering both alternatives, you will get more relevant visitors’. Firms such as Bluesky won’t just bring people to your website and abandon them, though. They’ll also help design the site to drive business once they’re there. ‘But this is not about showing off. If it’s flashy but doesn’t increase productivity or conversion rates, it’s useless,’ says Hilton.

‘We have three people dedicated solely to looking at websites, studying the analytics data, and seeing what things can be done to improve them.’ Bluesky did this for Eddie Wright used car supermarket – and yielded an 89 per cent increase in overall traffic, 28 per cent rise in sales, 38 per cent more telephone calls and a reduction in cost per enquiry of a staggering 96 per cent! ‘We like to make pretty sites but we also know people want to sell cars,’ says Hilton. ‘We therefore spend a lot of time looking at what’s working and not working for dealers, in order to fully maximise the value of all aspects of their site. We monitor everything, cut out the fat, and make websites both cheaper to run and a lot more effective.’ And this is just the approach you should be taking to your own site. Doing all this takes time and expertise; it’s akin to a game of chess, says Hilton, as you weigh up all the different areas, what changing them will do, and what impact they could have on other areas. This is where you need the experts. But don’t think it’s going to be expensive overall. ‘We have evidence that, following our work, one car dealer reduced their overall marketing spend by 21 per cent.’ More sales, then, for less spend; as Hilton adds: ‘Can you really say you’re getting enough out of what you have at the moment?’ >

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we drive sales We work for major dealers of 4X4, luxury, sport and mainstream cars as a specialist telemarketing and sales research company. We understand your business and what drives your customers. To discover how we can develop a winning programme for you call us on;

01825 766646 Read how we turbo-charged Harwoods sales >>

www.my-marketing.co.uk

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Lead generation Bluesky

a soft approach, that gets hard results My-Marketing.co.uk

hasing new customers, we all know, can be one of the most time-consuming aspects of car dealing. Prospective buyers are among the most demanding of all to deal with, and in many cases require kid gloves to treat right. In the daily machinations of a busy car dealer, this is easier said than done. Seriously, how many of us can invest the endless time prospecting for new clients demands? This is where MyMarketing come in. They can put in the time needed to find new business, so you don’t have to. Even better, their skill sets mean they are considerably more effective at doing it than many of us; decades of experience in people management means they can find the interest that often proves elusive. Yvette Beckett is head of the firm, and explains how it works. It all starts, she reveals, with the car dealer providing MyMarketing with a database of the contacts they’d like to be approached. ‘From here, we take over the prospecting for new clients, using our own highly-trained methods.’ The key is using the soft approach to get hard prospects. ‘This is far more than just telemarketing or remote prospecting – we secure confirmed sales opportunities for car dealers, and have a record of success recognised by many big car brands.’ In short, the firm does the prospecting, on your behalf. They make the calls, chat with past and potential customers and use a relaxed yet directed approach to get hard appointments. They are the conduit to honest feedback on the car dealer, too: see them as the managed go-between to your customers. MyMarketing gets the ball rolling by meeting with car dealers. Here, needs are discussed, and Beckett also determines whether they’ll get access to the right internal contacts so they can book appointments. This ability is key to getting the hot leads MyMarketing promises. ‘The dealer usually provides us with a diary of time lots. It is entirely

prescribed by them: we work within these guidelines and email confirmed appointments over to the dealer, usually every day.’ The firm can work faster, though – for particularly hot leads, they will personally call the dealer principal, to see what can be arranged. ‘Here, we’ll explain the situation for the dealer to take things from there,’ says Beckett. ‘In the past, this has led to the immediate sale of a Range Rover!’ The firm operates a simple pricing structure based on calls, time period and so on. ‘It is easy to budget for; dealers can compare to the number of sales they make. One of our clients paid for the entire campaign on the very first day of running it, after we secured 14 strong appointments for them…’ Harwood Group Land Rover marketing manager Jane saunders has seen the results in action. MyMarketing ran a campaign for her, during which, ‘they secured an average of over five appointments a day across the dealerships’. It was a campaign to incentivise test drives of the 2010 Land Rover Discovery 4. ‘150 appointments were made, bringing a new stream of customers to Harwoods. With a 10 per cent call to appointment conversion rate, conversion to sales figures were exceptionally high and a testament to both MyMarketing and Harwoods’ professionalism.’ An impressive recommendation. If you are a car dealer keen to face off the internet remoteness by meeting people face to face, you should consider MyMarketing’s offer as part of the sales process. ‘Your expertise is in selling cars, but ours is in making the initial bond with people,’ explains Beckett. ‘We are tenacious yet not intrusive, and get results as a consequence. For the many car dealers who just don’t have time to do follow-ups, we are a good solution to help drive their business on – putting their expertise to even greater use, and hopefully upping commission as a result!’ >

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Training

Bluesky

Making your sales team even better Mazda academy

o, you have buyers in the showroom, thanks to getting the prices right, along with fine work from your website and lead generation. Then what? Well, you need to make sure you don’t then lose them! This is where sales training comes in: ensuring car dealers are as well prepared as possible to convert interest into sales. A good training scheme will build upon the undeniable expertise that has got sales people into the strong position they all can claim at the moment. It will enhance these skills to drive them on to the next level – improving their returns and career prospects, while also ensuring the car dealership as a whole sells more cars. Done right, everyone wins. Experts such as Bram van den Berg are well placed to offer advice on the ins and outs of training. As director of the Mazda Academy, he knows only too well the perils and risks of poor training. ‘There is nothing worse than staff taking precious time out of the car dealership to attend a course, then coming back with nothing to show

for it,’ he says. They’ve lost out, you’ve lost out, nobody benefits and the customer will see zero benefit next time they visit. The Mazda Academy is an example of the new way of training. Forget old fashioned approaches where experienced salespeople were force-fed 10 rules of selling cars, which they already knew, then given an action plan to take back and, well, file in the bottom of their desk and forget. ‘We focus on training that gives the dealer network exactly what it wants,’ he says. ‘We do this by asking it!’ Car dealer input is everything throughout training schemes at the Mazda Academy – van den Berg places much emphasis on feedback, even from delegates who are attending the schemes. ‘We encourage them to challenge us: if we prescribe something, and they know it doesn’t work in their dealership, they’re encouraged to pipe up and tell us so, in order for us all to work out a solution.’ By doing this, everyone benefits. ‘In this way, we are not just a training centre, but a performance

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solution centre: by this, we mean creating an environment to strengthen brand and customer delight, while also sustaining dealer profitability.’ Contrast that with the sort of dreaded training you may remember from the past. Which was, on occasion, pointless. ‘You have a salesperson who sells 20 cars a month: he may wonder what’s the relevance of training for him. We, instead, ask him what he needs to know in order to sell even more. ‘This guy, he’s doing brilliantly at the moment: but why not get him to do even better still, and move up to 25 cars a month? Part of what we do will create that desire in his mind. You are capable, we’ll tell him: let us help you overachieve!’ When considering sending your staff on training schemes, it is, in short, vital you completely discount the old days of training: yes sir, no sir, then hometime. ‘We use EDI values – engagement, desire and inspiration,’ explains van den Berg. ‘In our sessions, people will sit at a desk for no longer than two hours, as we instead prioritise partnerships, sharing experiences and, well, having fun! It’s serious business, but with an element of fun that really helps trainees engage.’ This is what good training should be – not telling people how to suck eggs… Something to bear in mind when you’re researching the training schemes and asking questions before signing people up! At the Mazda Academy, training is focused around several areas – sales, aftersales and technical, with bodyshop schemes in the pipeline for the future. A flexible approach means most dealer needs can be catered for. For instance: ‘If you have a salesman who wants to become a sales manager, we can devise a two or three-year programme to help him get there. This is ideal for you but it’s also a carrot for him, too, and gives reason to the whole idea of training.’ The Mazda Academy is also embarking on a ‘Dealer Enhancement Programme’ series of training solutions. This is more ad hoc in approach, and sees the Mazda UK business managers work with the dealership management on site, to find out what sort of issues are pressing in their business. From this, they’ll talk with others in the dealership, from receptionist to sales manager, to see in what ways the

business could be maximised; development spreadsheets will provide action plans on how to improve the areas discussed. Like all good training schemes, this continues the ideal training ethos, of all parties working together. ‘Mazda Academy, Mazda UK and dealerships all combine under an improvement umbrella to help achieve the mission statement. By doing this, big business gains will be found.’ Van den Berg stresses another important part of training: that of the well-planned training follow-up. ‘We don’t just give the delegate an action plan. We take two copies, one of which stays with us. We’ll send this to both the dealer and dealership business manager, so Mazda UK can plan with the trainee’s line manager on how plans will be actioned. ‘On the business manager’s next visit to the dealership, they can then follow up on training progress of the trainee, with reference to the action plan we devised. This encourages dealerships to take ownership of formal learning, in order to ensure the whole organisation develops.’ Yet another example of training process management that help your key knowledge asset – your staff – to perform at the maximum. In short, training shouldn’t just be seen as something you’re forced to do, but a series of events that can solve identified problem areas and take your dealership to the next level. Done well, training is not just about an individual’s work methods; it also helps strengthen brand differentiation, which is becoming increasingly important as cars become ever more competitive. More and more strong models mean the brand is playing a bigger role in determining which car buyers choose. ‘Car firms differentiate their cars and engineer in a brand feel to drive themselves – but how do they do this for the sales process too? Well, through training; Mazda, for example, wants to challenge the rules with its sales process, to introduce a bit of fun into things.’ Everyone is talking about training nowadays. The complacency of the good days has gone – now, only the few fail to realise that, to actually grow business and make more money, you need to rely on the people doing the job, rather than the market itself. Without doubt, says van den Berg, it is an absolute fundamental of the sales process to perfect. Are you? >

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Finance

Bluesky

Get buyers the dream car they can afford oracleFinance.co.uk

ar finance is about turning dreams into reality. If you’ve been successful to this point, you will have a deal on the table, with a customer happy and eager to press ahead. Here is where finance comes in. Few will have the cost of a new car sitting in their bank account, so they’ll need to borrow money to complete the deal. This is how you seal the buying proposition. Problem is, in the current financial climate, it is harder than ever to do. Enter experts such as Oracle Finance. They are one of the UK’s leading premium vehicle finance company, underwriting a massive £200m every single year. This figure is so high because they cater for the really high-end of the car market: Porsches, Ferraris, Aston Martins, Rolls-Royce and, yes, Bugattis. Such finance experts will help you find the best, most suitable deal for customers, while also ensuring a good return for you, too. This is done using a bespoke approach to generate ideal solutions for car buyers; increasingly nowadays, there is no ‘one size fits all’ approach – finance is vital to the sales process, but it must be the right finance. Indeed, by doing this, finance can be used to actually nail the deal itself. Is the customer keen but unconvinced they can actually get into the new or used car of their choice? Does the deal still hover some way above the table? Enter car finance – with the best companies out there doing what could seem impossible, and getting people you thought you couldn’t place into cars they thought were out of bounds. As explained, with car finance, the trick is balancing the needs of both dealer and customer. It is a good source of extra revenue for you, but if the customer looks at the figures and thinks they’re being taken for a ride, they’ll walk away, Don’t forget, they’ll always use the stick of personal loans to challenge you, so it’s vital any deals you offer are sharp. FSA regulations also mean nothing can be hidden in the small print. You’ll have to tell the customer exactly what they’ll be paying and what they’ll be liable for. It’s crucial then you work with your loan provider to get the sharpest possible package for all concerned. Firms such as Oracle specialise in this. By taking their bespoke approach to deals, they tailor things to suit all concerned. An aim of such bespoke finance companies is to build up long-term relationships with both dealers and customers; do this, and customers will return to dealers time and again, to source more of the same. It’s great long-term business sense. It also helps offset the negative perception of car finance. The FLA reports finance uptake at car dealers is slipping, and it is an assumption that dealer rates are uncompetitive that is driving this. Therefore, make sure you work with your finance partner to make your deals as sharp as possible: again, partners such as Oracle will be active in this. Knaresborough’s Lawton Brook is one such car dealer that’s benefitted from Oracle’s expertise in supercar finance. The business teams up with Oracle to supply both finance leads and, in return, sourcing vehicles. It is a strong mutual relationship that proves the importance of having a strong finance partner. Here, ﬂexible deals from Oracle cover all bases – low monthly payments, or low deposit, or interest-only payments – even deals specifically including the ability to exit midagreement with minimal penalties. Why? Well, so people can change cars more frequently: a key priority for many supercar buyers… Tempted by some of the premium stock on offer at Lawton Brook, we checked out some of the PCP deals Oracle offers. Yes, they’re very much at the top end of the market, but the same principles apply when financing superminis: with car finance, you’re helping buyers access models they would not have the hard cash to do so otherwise. Who doesn’t fancy an Audi R8? If a six-figure price tag is a barrier, Oracle helps out: If buyers have a £30k deposit, they can have the Audi supercar for a decidedly family hatch-like £399 a month, over two years, with a guaranteed future value at the end. Deposit too steep? Oracle has an alternative: sell the family hatch, put down the £8,500 proceeds, and then pay £1,099 a month for four years. There’s more. Some customers have ample savings. Should they put £350,000 of that down, they can, unbelievably, get a Bugatti Veyron for a not-too-ridiculous £4,399 a month, over two years. If the house they’re selling is more of a two-bed terrace, then finance allows them to put £150,000 down, and pay £9,899 over four years. Admit it: you’re dreaming. That’s the beauty of car finance, and why it is of so much importance to the sales process… >

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Protect the things you love.....

MAPFRE ABRAXAS have the perfect match. Payment Protection Solutions, tailor made for your customers

Providing GAP, PPI, Warranty, Gaurantee,Tyre & MOT Protection, Compliance Solutions, In-dealer Trainig, Account Management and Helpdesk Support.

Call: 0845 1368430 email: info@mapfreabraxas.com or visit: www.mapfreassistance.co.uk The Insurer is MAPFRE ASISTENCIA Compañia Internacional de seguros y Reaseguros Sociedad Anónima (”MAPFRE”). The administrator is ABRAXAS Insurance Administration Services Limited (which is a wholly owned subsidiary of MAPFRE) authorised and regulated by the Financial Services Authority.

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GAP / PPIBluesky

they do the hard work, you bank the commission Mapfreassistance.co.uk

eal done? Don’t stop there! Because there are still opportunities to increase your profit margin – and a key one is in the sale of GAP and PPI insurance. Who better than Mapfre Abraxas to advise here? The huge firm’s commercial director, Nancy Rignall, says such tailormade solutions and products are its speciality – these are provided to dealers through the firm’s internal underwriting and IT departments, meaning dealers can actually personalise insurance products to their own customer database. Payment protection insurance covers car payments if the owner is sick or becomes unemployed. It takes the risk out of car loans – given how the average person owes over £12,000, and more than 1,800 people are made redundant every day, potential interest in PPI could well be significant. Indeed, in recognition of just how many Brits are exposed to debt, Mapfre Abraxas has a further alternative for car dealers – Credit Protect. This is not linked to a purchase, and provides standalone protection for outstanding credit. You can thus offer it to all of your customers; it costs less than regular PPI, yet it still provides a healthy revenue stream. Given the current economic climate, it has significant potential. GAP, meanwhile, is a product that recognises owner valuations and insurer valuations of cars that have been written off frequently differ. An insurer will pay a value based on depreciation, which can be significantly less than

it costs to get a replacement equivalent. GAP fills in that difference – or, if it is greater, pay off the amount outstanding on finance. It is offered for both new and used cars. Impressively, car dealers can promote GAP as paying the difference between the insurer’s value and the cost of a new car, even if the list price has risen in that time. This point is particularly relevant today, with new car prices generally on the up. It is a compelling ‘new for old’ product that eliminates the risk of writing off a new car. Both are two key revenue streams from Mapfre Abraxas’ vast product portfolio. ‘All of our products are designed and developed with focus on all areas of FSA guidance of treating customers fairly,’ says Rignall. This is crucial – PPI sales in particular have got something of a rough ride recently, which is why selling payment protection or insurance claim-focused GAP insurance products are not so straightforward these days. Getting a customer to sign there and then can often be tricky. Yet still, the big gains are there to be had if you can achieve it. Mapfre Abraxas’ solution? FSA-regulated telemarketing and resolicitiation sales programmes. Cost neutral to car dealers, they allow car dealers to approach buyers of their cars, even after the deal has been done, to drive sales of these profitable insurance schemes. The promise, says Rignall, is simple: ‘Sign a short confirmation contract, give us the data via secure upload, and we’ll do the work for you. All you do is bank the commission we make for you!’ Who can argue with that? Full monitoring and reporting is provided too, from the firm’s hi-tech, quality-controlled call centre. Could PPI and GAP insurance help protect and fill the gaps in your profit streams? >

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After scrappage? Aftersales? ...After thought? C

Replacing the lost profit from the scrappage scheme by adopting a consistent approach within the process.

Protection – not just for your customers, but also for your profit, beware the unexpected repair bills that you will have to pay for! Retention – keeping customers in the loop is vital for ongoing profit creation through repeat business and repair and service revenue. Opportunity – every retail and service customer is a valid target for an additional product and another visit to your showroom. Fact – our supporting dealers are making more money per unit by offering warranty, GAP and recovery products to everyone.

CMY

Innovation – we can design a product to suit your business and incentivise your customers to buy from you. Training – for your sales staff to maximise the profit potential through the sales process. If we continue to do the good things in a consistent and measured way, I can think of no reason why every customer should not buy from us. We’re one of the fastest growing warranty companies in the UK - if you would like to make more profits please call our Business Development Director, Eric Stone, on 0800 197 0321 or email sales@wmsgroupuk.com.

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Warranty Bluesky

Boost your proﬁts on car sales by 60 per cent wMsgroupuk.com

arranties can boost profits on car sales by up to 60 per cent: there are many more advantages to offering them, says WMS’ Eric Stone, but this is usually the one that grabs most attention! This means they are a key part of the sales process for you – but they are also just as important to those buying your cars, too. ‘Warranties are all about risk eradication,’ explains Stone, particularly when it comes to secondhand cars. ‘The customer will usually be more wary of buying a used vehicle, so a policy that is designed to insure against sudden mechanical and electrical failure could prove to be a very attractive option.’ Such reassurance, if promoted well, will also offer more ability to drive repeat business. This is the case even if a fault does subsequently develop; the customer will be dealt with smoothly, and you won’t face the impact on cashflow caused by committing to undertake future repairs. All WMS products cover all parts AND labour costs; even more compelling, for a small premium, there’s the option to use franchised repairers. ‘Car hire costs will be reimbursed if the repair takes longer than eight hours, hotel accommodation will be covered if necessary, and we also offer vehicle recovery contributions. ‘Our USP is that we guarantee ratified claim reimbursement within 24 hours. This means thousands of repairers and policy holders across the UK.’

What’s more, if you think a warranty is just think again. St about coverin one runs throug g a car itself, h some of the these include M options offere OT insurance, d by WMS – GA P insurance, fi recovery, alloy ve levels of brea wheel and tyre kdown warranty, HGV of motorcycle and coach cove cover, Dealer Fu r, five levels nd warranty pr Many of these od ucts… and plen products have ty more! been analysed detail: they all by Car Dealer combine to of Magazine in fe r a useful array by more than of options current 2,500 approved ly used car dealership further, WMS s. To boost this Group has rece presence nt ly been borne ou Management t of the former Services firm, wh Warranty ich was created in 2003. by three IMI Fe llows back With contempo rary branding and a compreh aims to sustain ensive new we WMS Group gr bsite, Stone owth by unde warranties are rlining just ho to profits gene w important ration and custo free training, th mer retention. e latest online ‘We offer systems, deale materials – I ev r support and en personally marketing write regular up market and of dates on the sta fer Best Practic te of the e advice to car ‘The right warra dealers,’ says St nty will ensure one. the car buyer lea the greatest pe ves the foreco ace of mind av urt with ailable.’ That wa far more in th rm feeling coul e long term th d be worth an the financial with selling a bonuses that, warranty… > yes, also come

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THE COMPLETE PROFESSIONALLY APPLIED CAR PAINT AND FABRIC PROTECTION SYSTEM DESIGNED TO KEEP VEHICLES IN SHOWROOM CONDITION INSIDE AND OUT – GUARANTEED FOR LIFE The only paint and fabric protection to fully protect your vehicle against the rigours of life including road salts, traffic film, acid rain, bird droppings, tree sap, fading as well as interior spillages and stains FOR LIFE. s &!.4!34)# 02/&)4 /00/245.)49 n %!2. /6%2 a 0%2 6%()#,% s 0%.%42!4)/. !#()%6!",% 53).' /52 3500/24 0!#+!'%

www.jewelultra.co.uk/diamondbrite Jewelultra Ltd, Diamondbrite House, Ewell Lane,West Farleigh, Maidstone, ME15 0NG Tel: 01622 815679 Fax: 01622 815321 E-mail: diamondbrite@jewelultra.com © Copyright Jewelultra 2009.

CarDealerIss27.indd 62 Diamondbrite A4 TRADE ad.indd 1

7/5/10 09:32:54 5/5/09 13:07:20

3:07:20

CarDealer

TO THE

SALES PROCESS

Paint protection Bluesky

Make an extra £200 on every car you sell... Jewelultra.co.uk

odern cars are so loaded with extras, car dealers must be more innovative in selling products in addition to the car. One area that’s a potential goldmine is paint protection. To what extent? ‘A dealer can make up to £200 extra per vehicle from it…’ So says Diamondbrite’s Lance Boseley, who reveals the firm’s most successful premium-margin dealers are selling more than 40 packs a month. That’s £8k a month extra revenue – and Jaguar Sevenoaks who provide the case study stats also reveal they’re regularly achieving 80 per cent penetration. That’s pretty exceptional penetration on high-worth cars, but most of Diamondbrite’s dealers achieve 50 per cent penetration: ‘Every other car they sell is paint-protected’. Every other car YOU sell could be making your dealer an extra £200… when you think that some of Diamondbrite’s biggest customers are actually car supermarkets – and that Motor Nation Darlington orders 120 packs every single month – it’s easy to see how fast returns will clock up. ‘Some of our more successful sales people make an extra £5,000 per year,’ adds Boseley. Yes, there’s big money in it for individual dealers, too! The promise you can offer customers is that they’ll never have to polish their car again. Pretty compelling, huh? The firm backs this up with, remarkably, a lifetime guarantee. This is in place so long as customers use the Diamondbrite conserver and car shampoo, while an annual inspection is also recommended. Aftersales opportunities are significant here. YOU should be selling the conserver and car shampoo, and YOU should be carrying out the annual inspection! If you’re trained and accredited, chances are you will be – meaning the customer has all the more reason to return and provide you

with the all-important customer contact. The protection is applied in a two-stage process by one of your technicians trained by Diamondbrite. This forms a tough glaze that halts fade and oxidation, shrugs off UV damage and can even protect against bird lime. It’s prime for the taking. ‘Most dealers are achieving lower penetrations than they should, because they are just relieved to have sold the car and want to move on to the next one, or they believe they have got the most out of the customer. Not so, as many of our clients prove. ‘It is all about process and belief. If the salesperson offers it to every customer and knows how to overcome objections, they will have a better chance of selling it. In addition, the more belief and commitment they show, the higher the chance of a successful sale.’ Much of this comes from training by the supplier, but there must also be commitment from the dealer management. ‘Use us, too,’ says Boseley. ‘We have an employed team of sales people who spend most of their time training the dealers to sell the product. ‘We do not charge for this service, but dealers do not always take full advantage of it. We also offer a comprehensive range of point of sale – again, free of charge to dealers.’ So, costs to set up and become a part of this high-return profit stream? ‘It only costs the price of a selection of packs for the dealer to get started. This can vary from £200 to £500 depending on the pack.’ Really, there’s little to lose in offering a paint protection service. Firms such as Diamondbrite will sell you everything you need, and train you, so all you have to do is present the opportunity to sales people. With a potential boost of £5k a year, the interest could well be significant… >

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CarDealer

TO THE

SALES PROCESS

Smart repair Bluesky

an extra proﬁt stream of £200,000 a year... aycesystems.com

ou probably suspect as much, looking at some of the cars rolling into your dealership, but research confirms it; more than two in three owners who visit a car dealer will be a potential smart repair customer. Owners, it seems, are happy to live with minor bumper scrapes, small cracks in windscreens, chipped paintwork and car park dings. Why? Because they fear rectifying it will cost them big! Not so, says Ayce Systems’ Paul Leather – if you are geared up at your dealer to provide a series of Smart repairs. Indeed, you probably already use them, to tidy up those minor jobs on used stock, or decent part-exchanges that are being sent to auction. Why not take this business in house? ‘It will mean you can prepare your own used stock to a higher level, at minimal cost; but also, more significantly, it is an offer you can put to your existing customers whose cars are in for a service, whenever they visit you.’ For a price low enough to really surprise car owners, you can offer to take their car back to how it was, quickly and effectively. And the result for you is potential clear profits that run into many tens of thousands. ‘As most smart repairs come in at less than £80, customers usually agree to have the work done,’ he says.

‘If you complete an average of 84 jobs a week – equating to the 70 per cent of customers who may have need for such services – there is a potential revenue stream of more than £200k per year! The added bonus is that this new business will attract new customers into your car dealer as well; to which you have the potential to upsell parts, services, MOTs, even new and used cars.’ It is new technology that means car dealers can explore such new business opportunities that previously could only be done by specialists. Leather says Ayce can offer all you need to get started in the smart repair business; all the latest systems (many boasting ‘while you wait’ speed), plus the training and aftercare in using them. ‘We are the only UK smart repair training centre to be approved by the RMI’s MVRA division, and are also a supplier to MVRA membership.’ Don’t worry about facilities, either, says Leather. Smart repairs are not restricted to dealers with bodyshop facilities. All you need is a vacant bay or undercover area for the operator to work. Just what can you offer? Well, Ayce products include paint and bumper repair, alloy wheel refurbishment, paintless dent repair, interior and glass repair, even UV ovens and deodorising systems. Buy the equipment and the training on using it is free; what’s more, you can also lease the equipment from Ayce, for even lower cost of initial implementation. The firm comes well recommended with manufacturer approval; both Peugeot and Renault grant it authorised supplier status for its bodywork rapid-repair systems. ‘It really is the perfect add-on to promote to customers during routine servicing or other ad-hoc visits, and represents a significant opportunity to grow business in a new way.’ Sounds smart to us. [CD]

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Alloy

feature

Book end?

A well-worn copy of Glass’s Guide will always be an integral part of the used car dealers’ toolkit, but more and more traders are now turning to the ﬁrm’s online valuation tools for pricing, reports RICHARD AUCOCK

icture a car dealership in your head and, chances are, there will be a scene involving thumbing through a well-used paper valuation guide. Nowadays, it’s potentially a familiar, oft-seen one: such is the complexity of modern car ranges, getting an exact price is often not the work of a moment… All that is about to change though, with the arrival of the new and improved GlassNet Unlimited. Given how 90 per cent of all car dealers use Glass’s for used car valuations, the introduction of the new system is very significant indeed. But what is it and how does it help car dealers? We spoke to Glass’s Vik Barodia to find out more. ‘GlassNet offers the simplest method for quickly generating an accurate and tailored

valuation for a specific vehicle,’ he told us. A bold statement, but one dealers are responding to as a result: ‘An ever-growing number of dealers are now adopting this new method for valuing cars.’ It really has quickly become a bit of a hit. The GlassNet system was only launched six months ago, he reveals, but a quarter of Glass’s subscribers are already using it on a daily basis. Ease of use and accuracy have driven the system’s subsequent development, he says. Key to this is utilisation of VRM lookup – this is where the really big revolution for many dealers lies. Thumbing through guides for hours on end becomes a thing of the past: instead, just enter the car registration number, adjust for mileage and fitted options, and bingo: out pops the EXACT value of that EXACT car… literally, in seconds! Using it really could not be simpler, or faster, and provided you have the registration correct, the result will be 100 per cent accurate. No more puzzling whether that Megane is a Privilege or Initiale, whether the Fiesta is a 1.25 65 or 82: let the computer do the work instead. Indeed, because of this car maker range complexity, the paper version of Glass’s Guide is able to feature only half of the UK car values available online: by doubling the valuation

count, Barodia reckons 95 per cent of the UK’s used vehicle parc is covered. Through the internet-based system, you can also adjust for light damage in another trick feature, again accurately and rapidly. GlassNet integrates with Glass’s Light Damage Estimator. If you’re an Experian customer, you can access provenance checks through the GlassNet system as well, saving even further time and making it yet more simple and inclusive. Clever stuff indeed. GlassNet Unlimited is the latest development of this, that’s rolling out right now; it’s the ‘Unlimited’ part that’s so significant. It allows valuation of as many cars as possible, without dealers racking up extra charges. ‘For the typical user, GlassNet Unlimited works out at just over £1 per day – and the solution’s costeffectiveness only gets better for dealers valuing larger numbers of cars.’ GlassNet Unlimited, then, really is just that… for something that’s as incredibly useful, efficient and accurate as this, having limitless opportunity to use it is set to bring massive improvements to car dealer processes, says Barodia. One of the first UK dealers to use GlassNet was Peter Brooks Honda in Rotherham. The dealer was drawn in because the system promised to bring together many of the day-to-day processes associated with valuations. The dealership started out using

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GlassNet 100, which provides 100 online valuations alongside a subscription to Glass’s Guide. So well did this go, the car dealer immediately signed up for GlassNet Unlimited, which offers a limitless number of valuations; it is now used to process the majority of its used car valuations. ‘We instantly found it very easy to use,’ says sales manager Andrew Morley. ‘The interface is very intuitive, and we can access it from any web-linked terminal in the dealership.’ It’s all the extra things the system does that has surprised Morley, though. ‘Before GlassNet, we would often carry out a provenance check to accurately identify the vehicle. Because GlassNet incorporates a VRM identification tool, we now only carry out a provenance check at the latter stages of the transaction. This shift has streamlined the valuation process and also saved us money.’ The damage adjustment facility in particular has been invaluable. ‘Our salespeople previously made their own assessments about how minor damage

‘For the typical user, GlassNet Unlimited works out at just over £1 per day – and the solution’s costeffectiveness only gets better for dealers valuing larger numbers of cars.’ would affect a valuation, wherever possible by also drawing on the expertise of our workshop team. ‘This was not as scientific a process as we would have liked. Because it involved some degree of subjectivity on the part of the salesperson, it was also an approach that could be challenged by customers who felt the downward adjustment was too severe.’ Enter GlassNet Unlimited’s features parts and repair data, as well as some core functionality from Glass’s Light Damage Estimator. ‘Our salespeople can now give the customer a printed valuation report that details how the valuation is affected by specific light damage. The report has the Glass’s name on it, and that instantly gives the customer confidence in the accuracy and independence of the valuation being given to them.’ This clarity is also useful when buying in used stock too. ‘When we’re negotiating with a seller we use GlassNet to evaluate how they arrived at a specific valuation, querying specific adjustments they might have made.’ It’s something Barodia picks up on. ‘Customer Valuation Reports can be printed off, detailing in full how each valuation was calculated,’ he says.

‘Carrying the dealer’s own details and those of Glass’s, these reports give the customer added reassurance that their part-exchange vehicle has been valued fairly by an independent and authoritative source.’ This hasn’t led to the abandonment of the paper guides, though. ‘We still use the Guide when out and about, such as when we’re at auctions. But GlassNet provides even broader coverage of the vehicle parc, is incredibly easy and quick to use, and is now our default valuation tool. We love it.’ As do Border Cars, in Carlisle, they piloted the system in its initial stages, and have remained a user ever since. The system is now used to identify and value all the used cars and light commercial vehicles it handles. ‘Accurate vehicle identification and valuation is crucial to the profitability of our business,’ says owner Mike Fusco. ‘Before GlassNet, we would rely on the customer and sales adviser to check the identity of a vehicle being offered in part-exchange. This sometimes proved problematical given that model badging is often less than obvious, and because of the very high number of different model range derivatives now available.’ This whole process identification process is now automated using GlassNet. Like Peter Brooks, Border Cars also uses the light damage estimator. ‘None of our team is equipped to provide a truly accurate estimate in those instances when replacement parts are required for a vehicle whose brand we do not represent,’ says Fusco. ‘If a customer comes in wanting to part-exchange a Mercedes-Benz and it requires a new windscreen or bumper, none of my team will know what these parts cost without making calls. This can have serious implications for us if we then under-estimate the parts cost and provide an inaccurate part-exchange price. GlassNet takes this problem away by giving us accurate parts replacement costs for all makes and models. It even alerts us if there are issues we should consider if we subsequently carry out the repair. He’s another happy customer. ‘GlassNet removes all of our identification and valuation problems, giving us speed, consistency and accuracy – seven days of the week. The system makes it much easier to produce accurate and up-to-date valuation for a specific vehicle, properly adjusted for the exact mileage, specification and condition.’ No wonder Barodia is chuffed. But he’s not resting on his laurels, either. Glass’s will continue developing GlassNet as more car dealers sign up. ‘We’re delighted that GlassNet is already attracting a wide variety of customers – from large franchised groups to small independent dealers.’ Will you be next to join in? [CD]

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auctions

Stunning sales success for Citroen

Henstock Auction stations Looking at the long-term legacy of scrappage

lthough plenty has been written on the scrappage scheme, I make no apologies for returning to the subject in the wake of an interesting report issued by Prof Peter Cooke and the Centre for Automotive Management (CAM) at Buckingham University. The BCA-sponsored report looked at the long-term legacy of scrappage on the used car market. In Cooke’s view, the decision to restrict scrappage to new cars and LCVs is likely to alter the shape of the market for some years to come. He says: ‘Unlike some ‘It’s likely that a programmes such as number of the Germany’s, the UK scheme scrappage scheme only covered new cars and LCVs. It’ll be some time beneficiaries before it is possible to would have determine whether the bought a used car scheme has changed the profile of the new car at some point market substantially for the longer term. ‘In the short term, the market has swung sharply towards smaller cars, from 35.5 per cent of the market in 2008 to 40.8 per cent for 2009 – a growing proportion of which are being imported from the Far East.’ The scrappage scheme also ‘took out’ several hundred thousand buyers who may have purchased used cars in the future. Cooke adds: ‘The majority of new cars sold under the umbrella of the scheme have been to motorists who wouldn’t ordinarily buy a new vehicle. In normal circumstances, these owners of older cars would buy a used car at some point, triggering sales up the supply chain until someone bought a new car, over time, generating more aftersales and finance business – probably more than a million transactions.’ In Cooke’s view, the steep fall in new car sales in 2008/2009, and the sluggish recovery predicted, will have an enormous impact on the UK car parc – which has contracted for the first time on record. For those who deal primarily in younger used cars there will be around three million fewer units ‘in stock’ by 2013, than at the high point of 2005. This raises the possibility of supply problems in the years ahead. Sourcing used cars will become the battleground for dealer profitability. The full report can be downloaded free from the Auction View portal on the BCA website.

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.

BCA held its biggest ever sale for Citroen last month – and scored a 100 per cent total sales record! All 409 cars offered were successfully bid for, in an auction that generated a total of £3.26m. Some 41 Citroen Approved dealers pushed the overall CAP Clean return up to 102.3 per cent – and it was the Nemo van that did best of all, hitting more than 110 per cent of CAP. Of the cars, the C-Crosser SUV did best, making 106 per cent of CAP. Interestingly though, although it was still ahead of CAP Clean, the C1 city car had one of the smallest margins of superiority, at 102 per cent of CAP. Could this suggest the city car sector is starting to cool a little bit? Michael Brown, head of remarketing

Auction4Cars set to offer proxy bidding AUCTION4CARS has launched a proxy bidding facility to help car dealers keep control of bids. The fee-free auction website – that is helping with our 911 for 2011 feature (see p40) – says the new function comes as part of numerous ongoing revisions. In short, it means dealers can set a maximum amount they will go to on a car bid, without having to wait until the auction ends. The auction computer will incrementally bid for the car dealer if competing bids are received – until the maximum is reached, in which case the dealer drops out. If no competing bids are received, the original amount is paid for the car, NOT the maximum limit set. Group disposal manager at parent firm Motorpoint, Neil Prescott, said: ‘We’re confident that the new features we have added to the website such as proxy bidding will make buying vehicles from Auction4Cars even easier.’

Citroen sets standard with BCA for Citroen UK, said: ‘This was the biggest single sale volume ever achieved by Citroen and BCA. ‘The strong attendance and the confident bidding throughout the sale demonstrates the commitment of our dealer network towards used cars. To sell more than 400 vehicles in one sale on one day is exceptional, particularly during a week when demand seemed a little softer.’ BCA’s Paul Dunn added praise of his own: ‘The 100 per cent conversion underlines that Citroen is sending the right messages to the marketplace about desirability, versatility and quality of the product range.’

Price drop sales shoot upwards UK Car Exchange hit four-figure stock levels less than four weeks after launching the unique price drop concept. The new alternative for car dealers, featured in last month’s issue, is already proving popular with traders. The service is also aiding car dealers in finding smart new ways to source stock, and ease current used car shortage issues. MD Tony Hinkley said: ‘In a very short period of time, our unique price-drop mechanism has demonstrated that it gives used car buyers the chance to pick up the right cars at the right price. ‘Registered sellers are enjoying faster stock turnover, thanks to the daily price drops, as well as benefiting from the chance to not only advertise cars but also to sell them through the site.’ In further news, the site is also launching an email service to further help car dealers. This delivers all the latest and most striking cars offered on the site, in a daily email round-up bulletin.

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We never stop CarDealerIss27.indd 69 

7/5/10 09:33:06 

DRIVE TRAFFIC Your website is your online forecourt. So it needs to work as hard as you do. It’s also got to be easy to navigate and rank highly with Google and other search engines that will drive traffic to your website. We’ve been building bespoke websites exclusively for the motor industry since 1999. A number of our sites for dealerships have won awards. And being automotive professionals ourselves, we know what your site needs to help you sell more cars. Find out more by calling 0845 2508820 or visiting www.ukwebsites.net Email: support@ukwebsites.net

Part of

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...in association with GForces

right click

The online video revolution T

he internet is an information minefield. It’s a 24-7 barrage of communication consisting of websites, news articles, social networks, images, videos and more. It can be daunting to look at this massive platform and grasp the overwhelming potential of any one of these information sources, but each holds value and untapped potential for the innovative car dealer. Take, for example, the potential of online videos: the Association of Online Publishers is predicting a 90 per cent growth in online revenue in 2010 (nma.co.uk, 2010). This communication channel is still in its infancy, however its potential power is already being explored by early adopting dealers keen to get out there and connect with customers through the use of online videos. While the potential of video may be huge, the big questions to ask yourself are: how can my dealership benefit from online video and which online video tools should I use? Online video allows salespeople to virtually display their vehicles in a way that negates the need to visit a showroom. If a picture is worth a thousand words, a video is worth a million. A number of forward-thinking car dealers have already introduced live video presentations of their cars on to their websites, giving the customer the chance to view the car before even setting foot on a forecourt. CItNow allows car dealers to harness the power of online videos on their own website while the customer is on the phone. Live video presentations of your car stock allow dealers to engage in a new, more contemporary level. Imagine being able to talk to a potential customer while they’re sat at home and being able to show them every detail of a car with the ability to zoom in and out to show the quality of the cabin, the tread of the tyres or the space in the boot in a way that photos alone cannot do. Another benefit can be found in the way that online videos fit very naturally into the realm of social media. A massive 626 billion videos were viewed online in

GForces’ Tim Smith takes a closer look at the way video is transforming the world of online car sales

‘Imagine being able to talk to a potential customer while they’re sat at home and being able to show them every detail of a car.’ 2009, therefore if you can offer viewers video content that is either entertaining or informative, the chances are they will watch it and wish to share it with others, comment on it or contact you about it. This is where videos, social networking and viral marketing can so often overlap. If you haven’t heard of YouTube you must have been living under a rock for the past few years. This video-sharing website has revolutionised the way that videos are watched, shared and rated. With more than 24 hours of video content posted on to YouTube every minute, this is a truly mammoth videosharing site with global appeal. If you are producing vehicle videos for your website,

take the next step and post those on to sites like YouTube. You can get useful feedback from viewers and can link these video posts to your existing social media strategy. As car dealers assess PR tactics that yield the greatest return on investment, online video should not to be overlooked. It has grown in popularity and is widely tipped to be the principal force driving growth in display advertising this year. Eight out of 10 internet users access online video in the UK on a regular basis, that’s 10 per cent more than the year before and that number continues to grow (IABUK.net, 2010). Therefore car dealers should give any online video campaign plenty of thought as simply shooting a video and posting it online will not guarantee results. The key to a successful video campaign is compelling content so get creative and use online video to generate exposure for corporate activities, events, used car stock, customer testimonials... the sky really is the limit.

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WHO GIVES A TOSS? Recently my nephew wrote an article for his university about a cup final football match that was abandoned because of snow and it was agreed that the only way to decide on the winner would be to toss a coin. It made no sense and I could not help thinking that there must be other examples of decisions and outcomes being decided by nothing more scientific or logical. You may choose a horse for the Grand National or even decide which political party to support in the forthcoming general election based on tossing a coin, but your choice of a business partner would surely be built on real commercial values driven by the need for a company that can deliver solutions for your customers and ones that are designed to create additional profit and retain those valuable customers for the future. On the 22nd April 2010 there was a choice of what programme to watch on TV that evening and it was all the more challenging because of the political leaders debate being shown at the same time as a soap opera, a consumer programme and a football match. In other words you had to choose between watching some sweaty men running around trying to trip each other up at every opportunity, or a group of desperate people living in a made up place with made up lives where they have to struggle for approval from their peers or a programme that is dedicated to exposing dodgy claims and false promises. On the other hand you could have watched Eastenders, Watchdog or the Atletico Madrid / Liverpool match. Fortunately our business decisions are not based on entertainment value alone. Make sure that yours is based on the ability of your business partner to work with you for your customers and the benefit of your business. Decisions are important and made easy when faced with compelling facts and supported by testimony and example from others. We have a supporting dealer base approaching 2,500 throughout the UK and their decisions to work with us has been based on sound commercial criteria. • • • •

Flexibility – able to deliver a product that fits your customers profile Profitability – fairly priced products that are attractive to your customers Reliability – ratified claims paid within 24 hours improving your cash flow Consistency – training and development for all your staff

It makes tremendous sense when a well structured sales presentation creates an environment where your customer is compelled to buy a product because it would just seem illogical and foolish not to. Warranty Management Services have a range of products and services designed to increase sell up opportunities and profit, retain customers for repair and service work and deliver an attractive proposition to your customer and based on their specific needs and requirements. We are looking for the opportunity to demonstrate what we can do for your business. No spin, false promises or attacks on the opposition, we don’t need to because we know what we can deliver.

If you would like to find out more, please email us at sales@wmsgroupuk.com or call our Business Development Director, Eric Stone for an informal chat on 0800 197 0321 or 07789 682502

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...in association with Really Good Domains

Leasing to play key role in success of electric cars A

fter many false dawns the critical momentum for the widespread take up of electric cars appears to have been reached. There is a real buzz about electric cars at the moment with most car manufacturers investing huge sums of money into their electrification programs. The UK’s leaders are playing a key role in the push too, the first three ‘Plugged-In Places’ winners have recently been announced which will see the North East, London and Milton Keynes as the first regions to benefit from significant investment in building a recharging infrastructure. To further aid the uptake of electric car ownership the government has also announced that all qualifying zero-emission cars will benefit from a grant of up to 25 per cent of the value of the car, capped at £5,000. While in a bid to support fleet and business procurement of electric cars, all zero-emission vehicles will have their benefit-inkind set at zero per cent for five years. With several small-scale trials currently taking place up and down the country, including cars such as the Mini E, Mitsubishi i-MiEV, Ford Focus BEV, and the Nissan LEAF, it will be 2011 which will see the real start of the race for electric car sales. And this is where leasing is sure to play a key role in their uptake. Running both TheGreenCarWebsite.co.uk and ContractHireAndLeasing.com, Really Good Domains is in a stronger position than anyone to comment on just how important business and personal leasing will be to this important new sector of motoring. Obviously, there are a number of obstacles that need to be removed to aid the switch to battery power. Firstly, and vital for the leasing industry, will be the accurate setting of residuals for electric cars. Over the coming months, companies such as CAP will be working hard to provide precise information to leasing companies and manufacturers to allow contract hire and leasing deals to be built for the first electric cars to come to market.

‘There are a number of obstacles that need to be removed to aid the switch to battery power.’ This first wave of electric cars is expected to include the Mitsubishi i-MiEV, Citroen C-Zero, Peugeot i0n (effectively the same car with a different badge), and the Nissan LEAF. The second hurdle to remove – and this will involve all car makers and dealerships – will be the need to help consumers get over ‘range anxiety’ fears. People need to be convinced that an electric car will be suitable for the majority of their journeys. Business users, fleets, and consumers living in ‘Plugged-In Places’ catchment areas will naturally be the early adopters, and leasing is widely expected to be the major source of sales to combat the initial high price. The i-MiEV is the first electric car from a major maker to have its UK price confirmed, and at

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almost £34,000 it will likely be out of reach of the majority of buyers. However, a competitively structured leasing proposition for both personal and business users will surely help shift more metal. And let’s not forget that leasing is currently the method for consumers involved in the Mini E trials. For a subsidised £330 per month a few Oxfordshire residents are helping the BMWowned company trial its electric-powered Mini. The trial has been so successful that many Mini E drivers have been desperate to keep hold of the cars longer than agreed! It is inevitable that over the coming months, not only will the buzz surrounding electric cars amplify, but also contract hire and leasing will increasingly become a prominent way for people and businesses to fund their travel requirements. Make sure your dealership captures more contract hire and leasing business by advertising on the number one website for contract hire and leasing in the UK. see ContractHireAndLeasing. com or call 0161 482 7655 to see how you can sell more cars.

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CarDealerMag.co.uk | 73 CarDealerIss27.indd 73

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Recruiting Success in the Automotive Industry

“Successful relationships are the result of successful recruitment” John Gibson Associates – The UK’s largest and leading Automotive Recruitment Consultancy. Our Head Office in York supports a national network of genuine Regional Offices, each run by experienced Motor Trade Professionals who know the local market inside and out; this ensures that we are the only providers of National coverage on a Local basis. Specialists in working confidentially; respecting the identities of all our clients and candidates meaning that there are no embarrassing situations. Each candidate we put forward has been interviewed by JGA so that we are certain that not only do we find exceptional candidates for the job but also for the business environment. We take pride in our reputation for expertise and an outstanding personal service and ensuring we do the job correctly every time. Each and every vacancy we handle is a genuine client requirement and every candidate we put forward has been contacted, giving their consent to be considered for a vacancy We have been established for over 25 years and our track record speaks for itself; enjoying at least 85% repeat business and placing more candidates in more jobs than anyone in motor trade recruitment. All this means that John Gibson Associates are the recognised and trusted brand in Automotive Recruitment. And because we are confident that you will be more than satisfied with our client services – all this comes with a six month guarantee.

he most valuable recruitment processes succeed when both the client and the consultancy have invested time in building a partnership and knowing each others’ business objectives. Using multiple suppliers merely creates an administrative overload with no added value – typically with agencies simply sending a candidate’s details without their consent, or having not met them to ascertain if they are the right person not only for the job but also the company ethos. Building a strong relationship with a trusted supplier who understands the business needs and culture, will reduce the amount of time the recruitment process takes and significantly reduces the amount of inappropriate paperwork sent and negate the risk of not finding the right person for the job. The dynamics in the market is beginning to expand, showing a noticeable increase in activity. We know of companies desperate to recruit but can not find the quality staff. A good recruitment consultancy has access to anonymous individuals that are not willing to broadcast their availability and that trust our opinion, confidentiality and expertise. It is imperative that clients trust that the success of their business is also of fundamental importance to the consultancy.

When employers truly recognise the necessity of recruiting the right people, there is a realisation that they should devote adequate time to the process of building a mutually supportive relationship. Dealing with numerous companies where the recruitment is spread across multiple agencies means the process will be transactional rather than strategic. This is detrimental, time consuming and potentially damaging to the future success of the business. Working with a well-placed organisation, where both sides have invested time in the relationship proves to be far more fruitful and cost-effective. All recruitment is costly, the most expensive form is the recruitment that fails to meet expectations resulting in the whole expensive procedure having to be repeated. The benefits of working in partnership with a quality recruitment consultancy continue to manifest long after the fee is forgotten. Our ability to build lasting and mutually beneficial relationships with all our Candidates and Clients is just one of our major strengths – Contact JGA today, speak to one of our Industry Experts and see how working with the trusted brand in Automotive Recruitment can benefit your success.

JGA cover all positions in the Motor Trade and it’s related industries – below is a selection of the different vacancies currently being handled by our network of Regional Offices – visit www.jgauk.com to see a complete list of genuine client requirements and take the next step towards your future success. Job ID Job Title 13999 13968 13909 13793 13578 13362 13388 13102 13784 13478 13875 13835

Location

Local Business Sales Mgr Newcastle Warranty Admin Lincs/Humber General Manager Essex Used Car Buyer Covering SW Bodyshop Mgr West Yorks Aftersales Mgr Herts Sales Exec TN Postcode Business Coach Nationwide BM/Sales Cont Middlesex HGV Technician Swindon Sales Manger North Manc Project Engineer N’hampton

Regional Office North Yorks/North East SW Yorks/Lincs Essex/Norfolk/Suffolk Bristol/South West Cumbria/Lancs/West Yorks N.London/Beds/Herts E.Sussex/Kent/SE London Surrey/W.Sussex/SE London Berks/Bucks/Oxon Dorset/Hants/Wilts Manchester/Stockport Cambs/Leics/Lincs/N’hants

Tel: 0845 644 3003

THE LOCAL, REGIONAL, NATIONAL AUTOMOTIVE RECRUITERS

Web: www.jgauk.com Email: info@jgauk.com

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[Recruitment]

Just the

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CAR DEALER MAGAZINE has relaunched its recruitment section with one amazing offer! We always strive to help the trade out whenever we can, so have decided the best way to do that is to give you the most affordable advertising in the motor trade. As part of that, we promise to beat any recruitment advertising price you’ve been given for motor trade print advertising. Simply show us a copy of an

invoice or quote and we will beat it – guaranteed! This offer is open to any car dealership, motor industry supplier or recruitment agency that wants to place recruitment advertising for positions they currently have available. To find out the details, just give us a call and we’ll explain how you can get an advert in our new section – we’re on (023) 9252 2434.

CarDealer. Recruitment ad.indd 1

4/5/10 12:49:06

The UK’s Number 1 Choice For Motor Trade Recruitment

www.justcarjobs.co.uk

08450 212123 Steer Your Business In The Right Direction

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