Car Dealer Magazine: Issue 3 by Blackball Media

Issue Three June 2008 www.cardealermagazine.co.uk

Driving the future of the motor trade

Maserati Quattroporte Ferrari firepower, BMW luxury, but is Italian a real rival?

Scam!

Crooks’ latest con revealed

Interweb

How to boost profits online

HPI sight

Why you should check every car

TESTED: AUDI RS6 + BMW M3 DROP TOP Plus! The inside story on luxury brand Infiniti’s UK launch plans

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Issue three | June 2008

HEN I first got a job writing about cars it was, and still is, the best job in the world. You can keep your Premiership football and professional beer tasting careers – playing with other people’s cars and then tapping a few hundred words out on a computer is by far and away the best. But there is one drawback: when you get to sample some of the best around, some can be a little, how can I put this… well, dull. When you’ve experienced Caterham acceleration it’s hard to get excited about a supermini. But there are still cars out there that can make me go weak at the knees; machines that I’d like to drive around a track until I’ve run down the nation’s super unleaded supplies to panic-buying levels. Unless you’re lucky enough to be sat in a supercar showroom, chances are cars like the

Maserati Quattroporte on the cover and the Lambroghini Gallardo below perk you up. They remind us why we really got into this business. How many times have you sat there replying to an endless stream of email enquiries for your mind to wonder off into a supercar dream. I know I have, more than once today already! To help, this month we’ve packed the issue with road tests of some of the most exciting cars around – the new Audi rS6, BMW’s convertible M3 and that stunning S-Class baiter the Quattroporte GT. Just try and do some work! It’s not just supercars though – as always we’re got some serious features to help you improve your business. On page 33 we give you the low-down on the amazing array of services on offer from HPI. renowned for its HPI Check, the firm offers all manner of clever products to help car dealers every day. And, while you’re struggling to think of a launch event for your next new model, spare a

thought for Inifiniti – they’re unveiling a whole new brand. What caught my eye was how the manufacturer is planning to take all new staff away to a luxury five-star hotel to show them what their customers expect! Nice start to a new job... And talking of new jobs, we’re planning a new recruitment section that will launch next month in the magazine and online. So if you’re thinking about your next move, or want to know how to attract top personnel to your dealership, make sure you subscribe to get next month’s mag (see page 50) – remember Car Dealer is totally free of charge. Happy selling!

james baggott, Editor

‘The Gallardo may look like a wedge of Cheddar, but that doesn’t stop every man wanting one with all his being.’

CarDealer

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Subscribe to

CarDealer. It’s totally free! Details, p50

Issue three | June 2008

dashboard 06

SEARCH & RESCUE

features 27

lambo gallardo

CHRISTMAS PRESENT

DOT COM

RING MASTER

hpi insight

SKODA AWARDS

On the spot

Tried and Tested

infiniti launch

Gadgets

USED CARS

Trading Places

How to get the best on the web Benham BMW’s £7m dealership Vauxhall VXR special edition Manufacturer rewards its dealers

CARD SCAM REVEALED

We uncover crooks’ latest scam

forecourt 18 21

quattroporte gt

Is Italian a real German rival?

bmw m3 drop top Ruthless, roofless

jaguar xf

audi rs6

The next generation big cat The estate in supercar company

Our latest Cult Car column Get in on the leasing gold rush How HPI’s amazing array of products can help your business AA Warranty’s Simon Tennyson The latest collection of top ideas The inside story on maker’s plans to launch luxury brand in the UK What to spend your profit on How VED tax bands will hit prices Our mission to raise cash for BEN moves into the hands of the pros

‘Exercise your right foot and licence-losing territory comes up in an instant, but the delivery of those horses is so refined.’

CarDealer

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agenda

Some dealers aren’t making the most of the web – but BuyYourCar.co.uk can help

PARTY

hese days just about anyone hunting a car turns to their computer as a first step – even before they’ve decided what sort they want. And of course any car dealer interested in more business is on the internet. Problem is, that’s not enough, according to independent sales site BuyYourCar.co.uk, which has pointed out that more than three quarters of those customers looking for cars on the net go to a single starting point – Google. ‘Latest figures show that the Google search engine is the first port of call for 77 per cent of consumers, whether they are looking for a new or used car,’ Daniel Phillips, marketing manager of BuyYourCar.co.uk, told Car Dealer. ‘So a dealer has not only to be on the net, they have to ensure that Google finds them, and that they rate sufficiently highly in its search results. Otherwise they can remain a very small insignificant drop in a very large ocean.’ Achieving such recognition, Daniel says, is immensely complex – Google constantly sends out ‘spiders’, effectively automated electronic programs that analyse each site they find, but they don’t just check whether a site has been recently updated. ‘There are some 200 algorithms Google uses to rate each site it finds, ranging right across the way a site is built, its links etc. All count towards where the site will appear on the results when a customer performs a search.’ Dealers, of course, know how to sell cars, not how to attract electronic spiders. So the simple answer is to partner with specialists in achieving consistently high search results – and BuyYourCar. co.uk rates at the top. While only 18 months old, the company has used its expertise to ensure it appears in the first page of results on virtually any car search made using Google – as well as on the other UK search engines, many of which actually use Google to present their results. Wide-ranging searches are consistently heading straight to BuyYourCar.co.uk, whether the customer types into Google fairly vague entries such as ‘used Jaguar in midlands’, specific details of the make and model they are looking for, or even all-embracing terms such as ‘used car’. Used dealers who have put their stock on the site have seen particularly impressive results –

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BuyYourCar.co.uk gives each dealer specific pages on the site, not just a classified listing, and the results of even especially specific searches for a particular car held by a dealer have listed its entry on BuyYourCar.co.uk several places above the dealer’s own site. The cost to a dealer of putting their cars on the site is less than many think – a maximum of £60 a month whether the outlet offers 10 or 500 cars. ‘It’s around the cost of selling two or three cars a year, to place your entire stock in front of everyone who might be interested in a purchase, 24 hours a day, 365 days a year,’ Daniel explains. Dealers are discovering other, less obvious, advantages to being on BuyYourCar.co.uk – they are benefiting from leasing and contract hire too. ‘Dealers are benefiting from cross-selling,’ said Daniel. ‘Many visitors to the site are hunting their next car but haven’t necessarily decided how to buy it. So they start off looking at the used cars section, but then they realise that instead of paying out for monthly finance on a used car they can actually have a new car on a lease programme for less money a month.’ More recently the site has expanded to offer a service where dealers can purchase new car leads on a pay-as-you-go system. The site – www.new carleads.co.uk – is still very new but many dealers are already discovering that they can hand-pick quality leads, right down to specific manufacturers in a particular region – and all from £2 per lead. Scott Stenning of Arbury has been using the system to effectively turn the internet on its head, winning back local business that has come under threat simply because those customers are going first to the net. ‘Local dealerships have to make sure that they recognise the threats and opportunities of the web,’ said Scott. ‘Using the newcarleads.co.uk system we can buy leads and win business from local people who might have gone further afield in their search.’ Daniel is in no doubt that all dealers, no matter what size, can gain big benefits from the net – but they can’t do it on their own. ‘They need to ensure they are always at the top of a very large pile – and by far the most effective way to do that is to use a site such as ours which is committed to remaining on that first Google page no matter what the customer is looking for.’

Daniel Phillips of BuyYourCar.co.uk has helped hundreds of dealers make more money

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BuyYourCar.co.uk continuously gets higher rankings in Google for dealers’ listings than their own sites

BuyYourCar.co.uk’s Daniel Phillips chats through the site with a Bentley Birmingham salesman

‘Dealers know how to sell cars not attract “electronic spiders”, so the simple answer is to partner with the specialists.’ Thanks to BuyYourCar.co.uk customer Bentley Birmingham for assisting with photos

CarDealer

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dashboard Nissan celebrates three more gongs

NISSAN is celebrating picking up another three industry awards. The Qashqai added to the seven honours it has received so far when it picked up the What Diesel medium family car of the year award. And the same judging panel also named the Navara as the best pickup. The two gongs were backed up by Professional Van & Light Truck magazine which voted the Navara best pickup too.

Cardif Pinnacle’s warranty deal CARDIF Pinnacle has acquired a majority shareholding in Warranty Direct Ltd. Both companies operate through affinity partners and motor dealers. Warranty Direct will continue to operate as a stand-alone business building on its excellent reputation for providing first-class warranty products and services. Cardif Pinnacle CEO Paul Glen said: ‘The acquisition will significantly improve the service and product proposition we can offer to our dealer customers.’

Visit Us: Unit 5 Heron Court Quarry Hill Ind Est Merlin Way Ilkeston Derbyshire DE7 4RA

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HOW about this for a Christmas present – a £7m new dealership! That’s exactly what Benham BMW bosses are looking forward to as work begins on its Wolverhampton city centre site. Due for completion in time for the festive season, the new site is set to create 30 jobs and will be one of the largest MINI dealerships in the country. The site will be located next to Benham’s existing premises in Raby Street, which in turn will undergo a full refurbishment ready for MINI early in 2009. The total site will extend to three-and-a-half acres with 200 metres of frontage to Wolverhampton’s Ring Road and the A4123 Birmingham New Road (pictured). Benham has been established in the same location for 15 years and currently employs 90 staff. Directors Nigel Payne and Steve Mills acquired Benham in 2005. Dealer principal Steve said: ‘Our present site is one third of the size it needs to be to cope with our increased sales and services. We sell more than 2,000 cars a year and deal with 60 service customers every day. ‘When Nigel and I acquired the dealership, we committed to building it into one of the best in the country. We are fortunate to have a very loyal

Job section to launch! CAR Dealer magazine is set to launch an all-new recruitment section which aims to help you find the best jobs in the motor trade! Every month we’ll be promoting the top jobs available across the country in the magazine and on a cool new online search engine on our website. Next month we’re planning a special feature to launch the section. If you want to find out how to advertise your positions in this, contact Darren Stokes on 023 9252 2434 or email him at darren@blackballmedia.co.uk.

£7m site plan

Benham BMW bosses look forward to a happy Christmas as huge new site begins to take shape customer base and we treat our customers as friends, spending time with them so that they purchase exactly what they want. ‘We have an excellent team, with many staff having been here for more than 10 years. They are looking

forward to the opening of the new flagship development.’ Talbot Construction started a few weeks ago on the new dealership. It will comprise over 40,000 square feet of accommodation, with a 21-car showroom and a 21-bay workshop.

Credit crunch has hidden financial benefit THE credit crunch doesn’t have to be all doom and gloom – clever dealers could use it as an opportunity to make more profit! That’s the message from RAC Warranty who have spotted a chance for traders to up-sell their inhouse finance products. RAC Warranty believers these tighter economic conditions have already prompted better penetration of warranty products and that a similar effect could be seen when it comes to used car finance. ‘Dealers have had a tougher time selling their own finance products in

recent years because the high street lenders have provided extremely cheap loans,’ explained sales and marketing director Ian Simpson. ‘However, that is beginning to change. Dealer finance packages are not only looking more attractive from a competitive point-of-view but the convenience and face-to-face nature of dealer-based lending could easily gain customers.’ Simpson added that many used car dealers were currently rediscovering the benefits of selling a range of financial products to customers.

Tel: 0845 257 8105 Fax: 0845 257 8106

www.flagpoleexpress.co.uk Email: sales@flagpoleexpress.co.uk

CarDealer

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22/4/08 11:11:37 2/5/08 10:55:42

dashboard Soft top sales go through the roof

CARCRAFT has found that Brits can’t get enough of topless driving, with the company’s latest sales figures showing a 33 per cent sales increase. Despite our notoriously unpredictable summers, sales figures reveal an increase in the volume of convertibles sold between 2006 and 2007, meaning that they now account for almost five per cent of the firm’s total used car sales.

judges say fiat 500 is black magic

THE Fiat 500 – the Car of the Year 2008 – has been crowned Best Small Car in the annual What Diesel Car Of The Year awards. This latest industry recognition is yet another top honour to be collected by the popular city car. The 500 impressed What Diesel’s panel of judges with its blend of style and modern diesel engine. The Jaguar XF (see p22) was the overall winner.

1m motorists are looking for cars NEW research by Auto Trader reveals that currently nearly one million motorists are looking to buy a new car within the year. According to the new research, nearly 10 per cent of respondents are looking to buy a new car, with one-in-five looking to spend more than £30,000. When asked what was the most important thing to look for when buying a car, all of them said price was key.

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Vauxhall’s ring master

Special VxR Nurburgring Edition is white hot and ready for road HOW about this for a bit of all white? Meet the Astra VXR Nurburgring Edition – a special version of the popular hatchback. Don’t get too excited – there are no changes under the bonnet, but that doesn’t mean it isn’t still highly desirable. The VXR looks absolutely stunning in all-white trim and each car features embossed leather seats and Nurburgring graphics. And before you think Vauxhall have simply jumped on the German track’s burgeoning bandwagon, the VXR actually has a link with the famous circuit – much of the hot hatch’s development work was carried out lapping the ring. The special edition is based on the standard VXR but does get a fruity Remus sports exhaust. Power is still

240bhp, which is enough to fire it to 60mph in 6.2 seconds and on to an electronically-limited top whack of 155mph. The Nurburgring Edition has a sixspeed gearbox and lowered, uprated suspension with ESP as standard. The dynamics have been altered slightly with wider front and rear tracks and lower un-sprung weight offered

by the new alloy wheels. Inside there’s carbon fibre detailing on the door trims and fascia, bespoke leather seats with the Nurburgring circuit graphic and an individual numbered plaque telling you which of the 835 cars available you’ve got to sell. The car’s sure to appeal to buyers who want a VXR that’s a little bit unique – and at £21,295 it’s attractively priced.

...as marque’s Vectra replacement signs in too MEET the new Vauxhall Vectra... but just don’t call it that! The all-new model has an all-new name – Insignia! And with a dramatic design, the family car has Ford’s Mondeo firmly in its sights. We have to say it looks superb – but can’t help thinking there’s a hint of the VW Passat in there. Still, that’s no bad thing and with five engines available at launch and all-wheel drive, the Insignia certainly seems to boast the right credentials. Vauxhall plans to unveil the new model officially at the British Motor Show in July. ‘We’ve redesigned our design vocabulary,’ said Mark Adams, vice-president of design for GM Europe. Quite what that means is beyond us, but he went on to add the Insignia is supposed to be ‘muscular, lithe and curvaceous’. Quite.

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GardX signs deal to supply Citroen outlets GARDX Protection has signed a deal with Citroen UK to provide its dealer network with paint and fabric protection. The GardX paint system protects bodywork and has been tested in some of the world’s harshest environments. It shields against the effects of the sun’s UV rays, acid rain, sea salt and comes with an eight-year warranty. The deal means all of Citroen’s outlets in the UK will now offer GardX Protection. Bob Lenton, Citroen’s director of parts and services, said: ‘We were very impressed by the GardX Protection system products and the undeniable profit GardX can generate for our dealers.’

HPI’s National Mileage Register has broken the 125m mileage reading barrier – providing valuable intelligence for dealers to combat clocking. The NMR has grown by a staggering 25m records since this time last year and these days one in every 12 vehicles checked with HPI shows a mileage discrepancy. While many inconsistencies are innocent, in other cases there is a very clear intention of someone trying to increase the value of a car. ‘Legitimate dealers need to ensure they are protected,’ said a spokesman.

Q5 takes fight to BMW

German manufacturers set to do battle in midsized SUV market as Audi reveal all-new Q5 GET ready for a fight BMW – Audi is on the warpath! Not content with stealing sales with its Q7 SUV, the German rivals are set to do battle in the midsized SUV sector with this, the new Q5. Set to hit dealers later this year, the smaller off-roader will be priced from £30,000. And, judging by these pictures, it’s certainly got looks on its side! The new model will launch with three engine variants – one petrol engine and two TDI units. All are direct injection

CarDealer

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and turbocharged. The petrol is a 2.0-litre TFSI which has been entirely redesigned with a clever valvelift system. It offers torque of 350Nm from just 1,500rpm with power peaking at 210bhp – enough for the Q5 to hit 60mph in 7.2 seconds. The diesel units will come in 2.0-litre and 3.0-litre sizes with power outputs of 170bhp and 240bhp respectively. Both will offer impressive fuel economy and refinement. Also featuring on the new model is a sevenspeed S tronic gearbox.

Meet the Smaaaaaart car that’s 17 foot long! REMEMBER the stretched Ferrari limousine you may have seen in the papers a few weeks back? Well here’s the latest creation from the same guys – a stretched Smart! Carbonyte UK – led by exMcLaren man Chris Wright – took the Smart Fortwo and stretched its chassis by 2,700mm, creating a 17-foot vehicle. Despite growing to over twice its normal length, the Smaaart’s lightweight alloy chassis allows the vehicle to be powered by its original 600cc engine and still comfortably reach motorway speeds of 80mph. It took just 300 man hours over four weeks from the initial chassis cut to the final paintwork to put together. ‘We think the Smaaart will make a great promotional vehicle – combining head-turning looks with the practicality of a van. We’ve already had incredible reactions on the road – in fact the same reaction we had with the stretched Ferrari,’ said Wright.

Auto Trader offers vehicle checks

AUTO Trader has announced a new partnership with Experian to provide a white label vehicle provenance product called Vehicle Check. The new product is available through Auto Trader on any used vehicle and checks if the motor has been stolen or salvaged, had a number plate change, has outstanding finance, clocked mileage, or has been involved in a major accident and is an insurance write-off. Auto Trader’s Tom White said: ‘We are confident that this will increase the number of motorists running vehicle checks.’

Foray celebrates magnificent March FORAY Motor Group had a magnificent March sales result with more than 1,000 new vehicles delivered to buyers. Group sales manager Tom Croft reported that around 75 per cent of them went to private retail customers. ‘While the largest individual volume was processed by our Salisbury and Andover dealerships we also had a magnificent result from newlyacquired English Ford at Poole,’ he said.

What’s your best sales gimmick? WHAT’S been your best ever sales gimmick? We’ve heard of a dealer that offered free helicopter flying lessons to buyers and that got us thinking – there must be some corking ideas like that out there. Email us at james@blackballmedia .co.uk as we’re planning a special feature.

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dashboard

Burgess Just checking Keep your eyes peeled for those fake V5 documents

n the wake of yet another Driver and Vehicle Licensing Agency (DVLA) alert listing serial numbers of stolen vehicle registration documents, dealers are being asked to keep their eyes peeled. The documents are being used by criminals to help them shift stolen vehicles that have had their identity changed to match that of a legitimate vehicle. These cloned vehicles are then sold on to unsuspecting dealers and members of the public who will be seriously out of pocket when their vehicles are found to be stolen and confiscated by the police. The V5 documents in question bear serial numbers in the ranges BG8407501 to BG8431000 and BG9282001 to BG9305000. ‘It’s hard enough They also have a different managing a busy background colour on the Notification of Permanent dealership Export (V5C/4) tear off slip without the on the second page, which added worry of looks mauve on the front dodgy documents and pink on the reverse. on the loose.’ On legitimate documents they should be mauve on both sides. We are the UK’s leading independent vehicle information specialist and the only one that includes a stolen V5 document check as standard. It’s difficult enough managing the pressures of a busy dealership without the added worry of dodgy documents on the loose. This means it’s more important than ever that dealers stay vigilant and don’t accept any V5s on face value. Take the time to have a good look at them and, most important of all, get them checked out. We are urging dealers to be the eyes and ears of the industry to protect themselves and their customers. With these stolen documents doing the rounds, dealers could come a cropper at the hands of criminals dealing in stolen and cloned vehicles. As criminals get ever more resourceful, dealers should be reassured to know that HPI offers a free V5 document check, offering them a safeguard against all types of vehicle fraud. Don’t let the car criminals win. Instead stay sharp and make sure you use all the tools at your disposal to close the net on thieves. Find out more about HPI’s array of services, page 33

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

Simply the best

Skoda names its top retailers at special bash in London as Silbury Skoda take home a coveted gold award

SKODA has named its best performing dealers at a glitzy awards ceremony held in London. The much-coveted gold awards were handed out to three dealers in the small, medium and large categories. Cramlington-based Silbury Skoda took the award in the large retailer section; Capitol Skoda in Newport sealed the win in the medium-sized section and Morecambe dealer David Ian & Son picked up gold in the small retailer category. This is the second year the awards have been held and they are part of Skoda’s retailer incentive programme that is designed to reward the company’s top achievers. It also aims to encourage competitiveness and help share best practice across the network.

To add to the fun of the evening, and reinforce the brand’s message that Skoda manufactures ‘happy drivers’, Skoda’s head of operations David Ovenden went to the extent of singing the winners on the day! ‘This year has seen a record number of businesses actively participating in the awards, which shows that our retailers are hungry for success,’ said Ovenden. ‘As well as rewarding the best performers, the awards are helping us drive retailer profitability and stimulate competitiveness within the network. We have ambitious growth plans for our network, supported by the increasing popularity of our cars and the personal approach to customers that is displayed by our retailers.’

Values made even easier A NEW product package from EurotaxGlass’s will make the job of valuing commercial vehicles even easier and more affordable for the trade in the office and on the move. Combining Glass’s Guide to Commercial Vehicle Values and Glass’s Evaluator (the company’s DVD-based valuation product), i-Value for Commercial Vehicles gives users access to the broadest model coverage available, at a preferential rate. The package brings a sizeable saving over the cost of individual subscriptions to the company’s Guide and Evaluator, with prices from just £750.

No, we’ve the oldest! LAST month we told you about Subaru Impreza fan Ron Billingham (above) who, at 77 years old, is thought to be the oldest WRX buyer in the UK. Not so, says Constitution Motors of Norwich. They got in touch to tell us about Donald Wadman who bought a Subaru WRX STi PPP at the age of 89! ‘He came in for a service and asked us to look at it – he thought it could run even faster!’ explained sales manager Gary Bilton. We want to know if you can top that – email james@black ballmedia.co.uk with your oldage, fast car fan pensioners.

CarDealer

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2/5/08 10:56:12

dashboard

Card scam warning

Car Dealer uncovers serious con that’s catching out traders CAR Dealer has been alerted to a serious scam that could leave traders seriously out of pocket. The con has already caught out several dealers and has the potential to sting loads more. The fraud was brought to our attention by dealer Mark Boyt, of HS Cars, Chichester, who was alerted to the con by a colleague. And the scam was confirmed as a problem by a number of our trade sources. The scam involves payment for cars over the phone and the cases we have heard of were very similar. Boyt explained: ‘A spoof leasing company contacted this dealer over the phone and said it wanted to buy three cars advertised online. He took payment for all three over the phone via card, with the authorisation number, and the funds were placed in his account. Drivers were sent over to pick the cars up and away they went – the dealer thought all was fine as the funds had cleared in his account. ‘However, two weeks later his bank told him the card was stolen and that the money

would be removed from his account. The police were involved and it transpires the cash is only safe in your account if the customer enters their pin via a terminal.’ Boyt explained the cars had been found but are still in a police compound while the banks argue over who is liable. Car Dealer has also been told of company’s calling up offering ‘trade deals’ for cars in the same way. Again they are paid for by card over the phone and a driver picks up the vehicle only for the dealer to later discover that the card was stolen. ‘Remember you are only covered if the customer presents their card to you in person,’ explained one trade source. ‘If not, you could lose the car and your money.’ We spoke to Barclays about what dealers can do to protect themselves. A spokesman said for added protection motor traders can look into password security which only card holders know. This can be set up with the firm that arranges your transactions. Want to warn other dealers about a scam? Call Car Dealer on 023 9252 2434.

Caterham’s mental r500 WE’VE got a bit of a soft spot for Caterhams – especially mental ones! And the pocket rockets don’t get much madder than this – the new R500. Boasting an incredible 520bhp per tonne, the tiny tearaway can hit 60mph in an eyeball-popping 2.8 seconds. It weighs in at just 506kg and produces 263bhp from a 2.0-litre Ford engine. The original R500 was a legend, with the old Rover K-series powered machine rewriting performance records for 0-60mph and 0-100-0mph times. This new variant has been equipped to supersede its predecessor with the very

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latest in lightweight engineering techniques and technology. The new car’s all-alloy 2.0-litre Ford engine is tuned by Caterham Powertrain and the relentless acceleration is transmitted through each ratio by either the standard six-speed gearbox or the optional Caterham Motorsport sequential transmission.The R500 costs £36,995 and is available now.

Tew Net gains It’s not just you that is feeling the squeeze...

hese are challenging times – money is scarce. Not only are we feeling the squeeze, but crucially our customers are too. So if we are to have any chance of selling them a car, we have to tell them not how much it is, but how affordable it could be. Putting a car on your website and saying it costs £10,000 is far less effective than saying it will cost 48 payments of so much. Today nine out of 10 of your customers will simply want to know ‘how much will this car cost me?’. So you need to ensure your site includes full details of the finance options on each car you are trying to sell, whether the customer organises finance through you or perhaps gets a personal ‘If you’re to sell loan from their bank. Not that you want them to go them a car, you off to the banks of course, because the revenue from need to tell organising finance is some- customers thing you want to keep not how much it within the dealership – and is, but how let’s face it we have the affordable it money to lend customers where right now it seems could be.’ many a High Street bank doesn’t… It’s essential you get all the financial information right, because it’s governed by the Consumer Credit Act and mis-quoting is illegal – you can say a car is slashed in price from £10,995 to £9,995 but you can’t for example say a car will cost a customer from £10 a day. Doing so could get you in a heap of trouble with Trading Standards so you need to deal with people who know what they are talking about. The best bit is that by correctly quoting financial information, you can actually make a car more affordable to the customer, particularly with regard to lease purchase, not a lease but a form of hire purchase, and personal contract purchase or PCPs. Both these include an element of residual value calculation in their quote – German brands do particularly well here but there are some surprises too, such as Chrysler’s big 300C which scores very highly on its rVs. In such cases, many a customer who thought they could afford a £10,000 car suddenly finds, because of the lower payments courtesy of strong rVs, they can actually afford a £12,000 car. And that, of course, is good news for you!

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

15 2/5/08 10:56:14

dashboard

Henstock Auction stations Dealing with the here and now of used car prices

hat is happening to the used car market in 2008? Even though we are nearly four months into the year (at the time of writing) there are so many mixed messages from various sources that the only thing that appears to be clear is we have no consensus. In the wholesale auction market we tend to deal with the here and now, but the recent publication of BCA’s new Pulse data allows us to see where we have been. The report shows that used values have generally shown some modest growth early in 2008, although not every sector has improved over the figures recorded in quarter four last year. If you were buying fleet and lease cars in quarter one, then on average you will have been ‘While quarter paying a little more than you were before Christmas one 2008 as a as average values rose by whole showed £116 to £6,688. improvement, But looking at the monthly figures, fleet and prices are in fact lease values rose by 4.9 per under a bit of cent between December pressure.’ and January, then the growth stalled in february and values fell back in March. Within the fleet and lease sector, it is notable that values for budget cars have shown some significant growth over the past six months, peaking in february, equivalent to a month-on-month 4.1 per cent rise. Values are now 10.6 per cent up on December and 13.5 per cent higher than November’s figures. This suggests there is plenty of demand for the smaller, more economical car and this demand must be coming from the retail customer on the high street. Values have been remarkably consistent over recent months, peaking at £2,449 in January, but were static in february, then fell in March by £77 to a level on a par with those seen in December. Once again, budget values saw the biggest gains. This gives further impetus to the view that there is an underlying softness in demand and while quarter one 2008 as a whole showed improvement, prices are in fact under a bit of pressure. With Easter now out of the way, April and May values will perhaps give a better indicator of how the market may perform over the rest of 2008.

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.

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Lexus dealers No 1

Auto Express names Toyota’s luxury arm as the best dealers in UK yet again in its Driver Power 2008 survey

AUTO Express has dished the dirt on the best and worst dealers in the UK in its annual Driver Power survey. Just weeks after naming the Skoda Octavia as Britain’s most reliable car, the biggest selling weekly car magazine in the UK has rated and slated dealers. Lexus topped the pile with a score of 90.95 per cent. The magazine said Toyota’s luxury brand was ‘head and shoulders’ above the rest and that no other marque can match it. But the result came as no surprise – Lexus has won the accolade every year since the Driver Power survey started! ‘The message is clear – if you want the best possible service for your car, Lexus has the greatest dealers you could ask for,’ said the magazine. ‘It’s a remarkable and

well deserved result, but not an entirely unexpected one.’ More than 32,000 readers responded to the Driver Power survey and they were asked to give dealers ratings for value for money, standard of workmanship, technical knowledge, helpfulness and attitude, communication, cleanliness and atmosphere and an overall score. Lexus nudged Skoda into second place. Skoda were praised for offering the best value for money. ‘If it wasn’t for the total domination of one luxury Japanese manufacturer, Skoda would have been walking away with a dealer trophy to match the first place Top 100 finish for the Octavia,’ remarked Auto Express. Renault came last in the poll, closely followed by Fiat and Peugeot.

San overwhelmed by response from dealers

Win amazing absorber

SAN importers Dream Machines have been overwhelmed with dealers looking to sign up to sell their convertible Storm model. The Indian brand announced it was looking for franchisees in last month’s Car Dealer magazine and has since been inundated with traders looking to sell the £9,995 two-seaters. San Motors’ UK marketing chief Richard Harfoot said he was due to visit a host of potential dealers and start choosing who’ll be selling San’s soon. And he praised Car Dealer for helping the brand: ‘The response we received was immediate – I received more quality calls than ever expected.’

GIVE your valeters a treat – win them one of these brilliant synthetic chamois leathers! The Absorber has one helluva drink problem and can soak up 50 per cent more water than a natural leather. We’ve been using one on our test cars recently and have found it’s absolutely brilliant. It comes in a tube that keeps it damp so it’s always ready to go and it’s staggering just how much water it can pick up. Made in America, the Absorber is safe to use on all paint surfaces and is totally lint free. It costs £7.99 and more information is available from 0117 902 4249. Or, if you’d like to get your hands on one of 10 we’ve got to giveaway, simply email your name and address – or your valeter’s name and address – to james@blackball media.co.uk with ‘Absorber’ in the subject bar and we’ll pick the winners out of a hat.

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2/5/08 10:56:22

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2/5/08 10:56:27

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T N O FR HE T OF

Maserati has big plans to double sales in the UK in 2008. BOB HUME finds out if the Quattroporte GT has what it takes to steal sales from the German marques

uxury saloons are more common than you’d think. Take a short drive and make a mental note of how many S-Class and 7-Series models you come across. It sometimes feels like we’re up to our necks in them – have the wealthy really got no imagination? The appallingly rich don’t seem to get it at all; they may be comfortable in the neutral boardroom-inspired cabins of their large and expensive, yet still incredibly good German saloons, but how many times do they draw level with an almost identical saloon at the lights? They must hate

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that, bless them. So what should you buy if you’ve reached the upper echelons of the motor trade? Well, you could go down the well-trodden path to your nearest Mercedes or BMW dealership, or if you wanted to be a bit different you might consider a Lexus or a Jaguar. But if you’re really feeling wacky you need to hunt down a Maserati showroom. Stick with us – it’s not as mad as it seems. Maserati is a brand clawing its way up the corporate ladder. Offering Ferrari firepower and BMW luxury, the Italian manufacturer >

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2/5/08 10:56:31

Maserati Quattroporte GT £83,415

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forecourt Quattroporte GT Price: £83,415 Engine: 4.2-litre, V8 Power: 400bhp, 460Nm 0-60mph: 5.6s Max: 167mph Ins: Group 20

The big Maserati’s unique selling point is the fact it’s just that – unique. Offering a very real alternative to BMW and Mercedes, the Quattroporte combines driving pleasure with luxury and actually pulls it off. certainly offers cars with the right credentials. So why are they about as common on our roads as someone fixing potholes? Well, there’s no hiding the fact Maseratis are dogged by disappointing residuals (check out the prices of used 3200GTs if you want to know what we’re talking about). But when you’re buying a 100 grand luxury limo you’ve got to take losing a few quid as a given – even the Germans aren’t much better. At least if you pick a Maserati you know the chances of another pulling up alongside you is slim – finding Bin Laden slim. Make no mistake, if you opt for the traditional German route you’ll end up with an incredible car for your 80 to 100 grand, but so will a lot of other ‘nouveau riche’. The Maserato Quattroporte not only has a seriously cool name, but it’s a little less obvious. It’s not audacious, and it’s a brand that communicates your affluence, but says a little more about your sense of good taste. The legendary Italian manufacturer has a strong tradition of competition and sportscar building and has fused its technology and sporting pedigree into the opulence of this luxury saloon. Car Dealer slipped behind the wheel of the new 2008 Executive GT; the flagship variant of the luxury four-door five-seater Quattroporte to get a taste of life in the boardroom without having to go face to face with Sir Alan Sugar. Styled by noted Italian automotive designer Pininfarina, the Quattroporte takes design cues from the 70s. There’s a nostalgic nod to the rear quarter of the car; the C pillars and boot area are reminiscent of some of the sports saloons of 30 years ago. The front and grille are aggressively styled and the combination of athletic curves and muscular lines combine to make the entire end product achingly handsome.

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At cruising speed, the big car is unflustered, dignified and sweeps along motorways and A-roads with grace. Inside the sumptuous leather cabin, everything’s calm. The famously immoderate way Maserati furnishes its cars is obvious wherever you look, and the driver’s seat is a very pleasant place indeed. Engine noise is on another level – it is simply fantastic. The big Ferrari-sourced V8 produces a deliciously thunderous growl when you goad it. It’s worth just sitting and gunning it, listening to the big twin exhausts barking in symphony with the roar of the tuned motor. On the over-run there’s a lovely series of muffled cracks. And the performance figures read like those of an expensive coupe; the 4,244cc V8 multivalve engine will propel almost two tonnes of Italian luxury from rest to 60mph in 5.6 seconds,

beating several of its direct rivals. Keep you right foot down and the Quattroporte will reach a maximum speed of 167mph. The Maserati is astonishingly quick from standstill and through the automatic gears, especially in the tighter-geared and more throttle-sensitive sport mode, roaring to the national speed limit with incredible urgency. There is a huge amount of lateral grip too; you can throw it into almost any corner at speed and be fairly confident that it will deal with it. The real key to the Quattroprote’s success, though, is all down to its delivery. It’s not German in its efficiency and that’s the point – it’s inspiring and involving to drive and has a badge that trumps even the finest in the corporate car park. Just don’t go buying one thinking of it as an investment…

‘The big Ferrari-sourced V8 produces a deliciously thunderous growl when you goad it and on the over-run there’s a lovely series of muffled cracks.’

CarDealer

2/5/08 10:56:39

irst there was the BMW M3 – surely one of the most famed, desired yet paradoxically practical performance coupes out there. It serves up 414bhp from a 4-litre V8 engine developed directly from F1 technology, yet also provides room for five adults in comfort. Then the M3 became even more practical with the launch a few weeks ago of a four-door saloon variant. Now the summer season model is here – no less power, and no roof either. In fact the new M3 Convertible is the fourth generation of BMW’s power-pumper to include a drop-top model, but it is also one that differs significantly from its forebears. Of course, it has seriously more power – the original M3 Convertible of 1988 offered only 200 horses from its 2.3-litre four cylinder unit – but it also has, for the first time, a folding metal roof, abandoning the fabric set up of previous models. Roof up, the car looks just like – and as comfortable and cosy to be in – any other M3. Drop the roof, a matter of moments using buttons in the cabin, and it becomes just about the quickest open-top cruiser around. And if we get a nice warm summer this year, you will have no qualms about leaving that top down, because this is the first M3 to offer BMW’s very clever Sun Reflective leather technology, which means even after hours catching rays you won’t burn your nether regions on overheated hide when slipping back into those seats. Such niceties are worth having, but all M3s are bought for one reason, because they go – and boy do they go... Naturally the Convertible

BMW M3 Convertible £54,655 comes with the same engine fitted to its Coupe and Saloon sisters. A unit with 105bhp per litre and a power to weight ratio 10 per cent better than its predecessor. Using the latest manufacturing techniques it tips the scales at 202 kilos and that’s 15 less than the six cylinder unit in the old car. Mind you the engine does have to work a little harder in this environment thanks to the extra 200 kilos or so of strengthening added to compensate for losing the roof. BMW does try to keep the weight down, courtesy of aluminium wing panels and the like as part of its ‘Efficient Dynamics’ program designed to make even its most powerful cars a little more environmentally friendly.

Another of these systems, standard on all M3 models, is Brake Energy Regeneration. It activates the alternator when the engine is not under power, to charge the battery with what would previously have been wasted energy. Efficient Dynamics helps the M3 Convertible achieve – nearly 22mpg… Weirdly, the M3 is a delight to drive around town. But that is of course because BMW’s clever engineering types have thought about that, realising that with family-sized space some owners might want to use it as an everyday car. At £54,655 it’s a lot of money, but then again it’s also a lot of car. The ultimate performance drop-top? Well, it’s certainly a contender. STEWART JAMES

TOP THAT

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2/5/08 10:56:46

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Top cat F

inally it’s happened – the deal that has been talked about for the best part of a year has been done, and those most revered of British badges, Jaguar and Land Rover, are no longer in American ownership, but Indian. The deal, clinched at the end of March and worth $1.15bn, saw Ford sell off its two British subsidiaries to the rapidly expanding Tata. And the arrival of the Indians was welcomed by just about everyone connected with the two brands, including the unions. Tata fully appreciates what it’s buying, and head man Ratan Tata has already announced he intends the two companies to ‘preserve and build on their heritage and competitiveness, keeping their identities intact’. Mr Tata has clearly spent some time in the XF – Jaguar’s newest, most significant and most exciting car for some time. The XF actually replaces the S-type but is nothing like it. The

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The Jaguar XF is the start of a new beginning for the marque, reports STEWART JAMES

S-type might have been a good car but it was also a clear example of a Jaguar design rut, a conviction that owners of cars bearing the famous leaping cat badge liked to hark back to a glorious past. The XF, however, is a thoroughly modern machine that looks like a coupe yet has four doors, space for five adults and the biggest boot Jaguar has ever offered. The cabin will force a smile into the hardestset face. Not only is it of excellent quality and bang up-to-date, but also oozes care and sophistication, along with a pleasing lack of Ford general components. Then you notice the fun parts, the start button pulsating red like a heartbeat, and once pressed the gear selector rising to meet your hand as the air vents rotate smoothly from their closed to open position. That gear selector is a big aluminium knob, allowing a simple selection of the six-speed auto gearbox and making for a much cleaner

console arrangement. Every XF comes with the auto, but it’s combined with steering wheel paddles for manual commands when you feel like some fun. They shift swiftly, and so smoothly, as we proved on a challenging route around mountain roads close to Monte Carlo. At the launch we tried three of the four engines available, these being the 2.7-litre V6 diesel, the 4.2 V8 petrol and its awesome supercharged sibling. We missed out on the entry-level 3-litre petrol. Of course the supercharged car impressed the most, its 409 horses pumping this Jag through 60mph in just over five seconds – but we particularly like the diesel. You get just over 200bhp, a sub-eightsecond 0-60mph time but also 38mpg fuel economy and a 199g/km emissions figure. In the XF, Jag has laid down its plans for the future – plans to seriously shake up the premium sector – and long may it continue!

CarDealer

2/5/08 10:56:51

COS0

Grow your business with the award winning new SsangYong range. ‘It will work for you’ Under new ownership, SsangYong in the UK are relaunching the brand with a new award winning range of competitively priced 4x4s and MPVs backed up by a multi million pound marketing campaign. To support this investment they are looking to recruit entrepreneurial dealers who can help form part of a successful national sales network. Become a SsangYong dealer and benefit from: t An innovative dealer development programme that will help you make more, sell more and deliver a better customer experience t Low cost of entry t Business driven achievable franchise standards t Extensive local marketing support including a new dealer web portal t A full programme of after sales support covering competitively priced parts, warranties, training and technical support t A comprehensive used car programme t All backed up by generous dealer commercial terms

Find out more The pulling power of the new Rexton

The versatility of the new Kyron

The space of the new Rodius

Call Ian Nicholson on 01252 619100

www.ssangyonggb.co.uk

CarDealerIss3.indd 23 COS00000_Ssang Dealer Recruit_A4_MV02.indd 1

2/5/08 10:56:51 3/28/08 12:24:31 PM

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SUITED BOOTED

It may look like an estate, but the all-new Audi RS6 is pure supercar, as STEWART JAMES finds out

MAGINE opening a garage door and finding inside a line-up including the Bentley GT Speed, Ferrari 599, Pagani Zonda F, Lamborghini Mucielago, and that F1-inspired quarter-million pound device the Mercedes SLR. You would know this was supercar land – but would you then park among those desirables an Audi estate? Well you would if you were driving Audi’s new RS6. You see all of the cars we’ve mentioned above belong to a rather exclusive club – they all pump out power in excess of 570bhp – and so, remarkably, does the Audi. What makes this car all the more remarkable is the fact it combines stunning acceleration and speed with the ability to lug serious loads about. And this in a machine that when crawling around town behaves far, far better than anything this powerful has the right to. For a car dubbed the most powerful production estate on the market, the RS6 is frankly un-prepossessing to look at – sure it appears purposeful, with its big arches flaring into the doors, the more dramatic bumpers supplying vital extra cooling air to the bigger brakes, the subtle matt aluminium styling touches and the equally innocuous rear spoiler. All of this car’s real secrets, however, lie under the bonnet. Contained within is a 5-litre V10 petrol engine, using the TFSI technology that Audi developed in its 24-hour-race-winning Le Mans sportscars. The direct injection system makes the RS6 an efficient beast – okay, it will never come near to appearing on the shopping list of the eco-warrior, but with a 20mpg fuel rate and 333g/km emissions level it qualifies as the most economical

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and cleanest car in its class. And yet as well as those 570 horses, you get almost 650Nm of torque, which will see the RS6 through 60mph in around 4.5 seconds and on to the electronic limit of 155mph that virtually all supercars are anchored at – except that Audi instead allows you to have it limited to 175mph, if you wish... This car will outpace a BMW M5 or Mercedes SL63 AMG estate, and while they vainly chase the Audi they will burn more fuel and produce more CO2. Driving the RS6 is a somewhat surreal experience. There is no doubting its

power – exercise your right foot and licencelosing territory comes up in an instant, though the delivery of all those horses is so refined that it oozes confidence, and you really do need to watch the speedo to alert yourself that you may be straying into illegal territory. Yet come into a village, relax that right pedal, let the ratios drop through the silky smooth, yet so swift, auto gearbox and the car will purr along at 20mph without a murmur of complaint. It handles too, greatly helped by that Audi

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2/5/08 10:56:58

Audi RS6 £77,736

essential quattro four-wheel drive. There are some superbly twisty roads around Audi’s favoured continental test location, where the RS6 was launched, and tackling them in the mighty estate was a blast, using the gearbox in its manual mode and performing instant changes through the steering wheel paddles, each accompanied by an intoxicating grunt from the powerplant. The RS6 is a real, proper, top per-

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formance car, which makes the fact that it’s also a five-door estate all the more remarkable. It really can be a family runabout, if you are the kind of affluent family that can pay to put fuel in it. Audi admits that buyers for the car will be of a very particular type – probably loaded enough to add it to that fleet of desirable cars we listed at the start!

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AT048 Tried&Tested FP_AMA4

28/3/08

16:52

Page 1

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Who following their free trial clearly saw the benefits for their business of full membership

17,055 prime used cars offered by dealers in February 08 5,099 requests from dealers looking for specific cars in February 08

But don’t take our word for it! Ian Mossop, Sales Manager, Lexus Isle of Man “I placed a ‘Wanted Ad’ and immediately received a call from a fellow dealer who offered me the vehicle and a deal was done. I have struggled for a long time through my usual sources but within 15 minutes I had it sourced through yours and it will definitely satisfy the customer I have waiting, thank you” Mar 08

Norman Smith, Sales Director, Mertrux “Autotrade-mail – a true credit to the modern Motor Trade. We successfully source over 30% of our used car/commercial stock from the system with so much ease and reliability. Being a main supplier in the north for the Mercedes Commercial market, this tool has proved itself invaluable day after day” Feb 08

Brian King, Dealer Principal, Ames Nissan “We had a Nissan Terrano we needed to trade, put it onto Autotrade-mail at 3.00pm this afternoon, it was sold by 3.15pm!! What more can I say except that I am absolutely delighted! Excellent!” Mar 08 Steve Bradley, Proprietor, Campden Road Garage “I placed a car on to Autotrade-mail, clicked ‘send advert’, turned away from my PC to answer the phone to someone wanting to buy it!!! Also had a further 30 phone calls in the next 2 hours. I couldn’t believe it, Brilliant!!” Mar 08 Ian Bird, IBM Motor Solutions “Autotrade-mail simply knocks the spots off the competition.” Jan 08

Damien Smith, Sales Manager, Skipton Ford “It’s a brilliant site, it couldn’t be easier to use and we cannot believe how powerful it is. We had a Zafira we needed to trade, put in on the website and had in excess of 10 calls within the first hour. We trade loads through Autotrade-mail now (approximately 50 so far this year alone and it’s only February) and love it. Keep up the good work!” Feb 08 Paul Garratley, Sales Manager, Mike Thompson Peugeot “I advertised a BMW X3 yesterday and received a bid of an extra £500, that enabled us to close the deal with the customer, thank you.” Jan 08

Call us on 0870 2000 848 for your FREE two week trial and experience the full range of Autotrade-mail subscriber benefits before investing in your £40 monthly subscription. CarDealerIss3.indd 26

2/5/08 10:57:07

cult cars

Lamborghini Gallardo

amborghini’s Gallardo may look like a wedge of Cheddar, but that doesn’t stop every man and boy with a slight trickle of petrol in their veins wanting one with every ounce of their being. I know I do. Yes, its looks might be a little futuristic for some – but I’d argue there really isn’t much out there that can cause more neck creaks than a Gallardo pottering down a high street. The baby Lambo really is one amazing car and one that’s meant writing this Cult Cars column has been somewhat of a battle with that new fangled website, the You Tube. You see, every time I go to write another paragraph I can’t help but want to watch an awesome video of Tiff Needell wringing the thing’s neck in a time trial with another one of my favourite machines – the Ducati 999. In the clip from Fifth Gear (don’t let that put you off), Tiff is hammering around a track in a bright yellow Gallardo. The sound the 520bhp

V10 makes when it’s being whipped into submission by the drift king himself is worth every penny of your broadband connection. Deeper and more soulful than a Ferrari, it even sounds good through my PCs tinny little speakers. I won’t spoil the results of the race – I’ll post the video with this story on our website so you can see the clip yourself – but it’s safe to say that if you don’t want a Lambo after you’ve seen it you probably shouldn’t be selling cars. The fact the video’s been viewed over half a million times gives you some idea of the cult status the Gallardo has achieved. It’s quickly become a legend and rightly so. With the company now in the safe pair of hands that is Audi – and the engineering brilliance that comes with the German firm – these Italian supercars are no longer tempremental pieces of automotive art simply there to be stared at and never driven.

No, these days they’ve got Italian flair; they still look a million dollars (and are not shy of costing it too), but under the skin there’s German DNA – and that’s no bad thing. Ok, so they might still be a little uncompromising – but then what did you expect? This is a supercar after all. Those compromises will soon be forgotten on the road. With four-wheel drive and that stonking V10, the Gallardo is as good to drive as it is to look at – pulverising the 0-60mph dash in 4.3 seconds and powering on to a prison sentence-inducing 193mph. The Gallardo has all the qualities of a cult car – the looks, the desirability, and the performance. And now, with the name being consigned to history as the LP560/4 takes over, the baby Lambo moves into legendary status. If you don’t believe us, go view that video on our website – I guarantee you’ll be convinced. JAMES BAGGOTT

Lamborghini Gallardo Price: £142,502 Engine: 5.0-litre, V10 Power: 520bhp, 509Nm 0-60mph: 4.3s Max: 193mph Now finance one with Bridford: Option one: £37,250 deposit, 24 x £825 per month, final payment Option two: £15,000 deposit, 48 x £1,745 per month, final payment

o ul e,

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...in association with Really Good Domains

Weathering the storm The credit crunch might be making all the headlines, but for the canny dealers it is breeding opportunity

redit crunch this, tightening of belts that – anyone would think the world was about to implode. OK, so there might be some reigning in of spending in some quarters, but that just means opportunities for canny dealers are opening up elsewhere. With profit margins becoming tighter for main dealers it is certainly true that it is becoming increasingly harder to maintain profit levels within retail sales. However, the clever traders out there have caught on to the considerable additional revenue that the burgeoning contract hire and leasing market place offers. And the best bit is contract hire sales can be made to customers from all over the country, expanding your potential client base greatly. Really Good Domians has found a lot of contract hire customers are business users and a relationship can be built between the business and the dealership very easily. This means when other vehicles need to be replaced, the supplying dealer of previous contract hire vehicles will more than likely be approached to supply the replacement. ‘It really isn’t important which franchise you represent as franchised dealers from Chrysler to Audi have reported huge additional sales,’ explained Really Good Domains’ chief Dave Timmis. ‘Hatfields Chrysler for instance started using ContractHireAndLeasing.com for the reduced rate trial for their fleet department. In their very first month they sold 44 units and reported additional profit of £36,000. ‘And that figure is even more impressive when you consider it was achieved by one fleet sales specialist who managed to outsell the whole of the retail department!’ A large Cheshire Audi main dealer also re-



‘The contract hire and personal leasing market place is becoming a modern day gold rush.’ ported that it had enjoyed £70,000 of additional revenue from their three-month trial – £40,000 out of the metal and £30,000 from finance income. ‘There are a lot of main dealers who have noticed the amount of units car leasing companies are ordering and they want to know how they are achieving that level of sales success,’ added Dave. ‘In plain terms, if you are looking for a contract hire offer on the internet it is almost impossible

not to come across our ContractHireAndLeasing. com site. Try typing into Google “contract hire”, “Audi contract hire”, “Audi A3 contract hire” and every time you will find our site at the top of the search results.’ And this high Google ranking means potential customers are then directed to the site. ‘Some franchised dealers are missing out on this lucrative fleet market, or even worse are giving all their margin out of the vehicles to gain volume bonuses by supplying the vehicle to a car leasing company to supply to the end user,’ said Dave. ‘This will also mean lost F&I sales and the repeat business will go to the car leasing company and not the supplying dealer.’ Many main dealers are already advertising on the ContractHireAndLeasing.com website. Some trade under an alias, some don’t – but both are finding they’re benefiting hugely. ‘The contract hire and personal leasing market place is becoming a modern day gold rush and dealers who recognise this and position themselves early are well placed to weather the credit crunch storm ahead,’ added Dave.

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feature

afety check

Getting your fingers burnt by a car with hidden history is avoidable with an HPI Check – Richard Aucock finds out the details

CarDealer

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HPI E

veryone knows HPI. Especially your customers. When they’re buying a used car, what do they ask – whether you’ve carried out a provenance check, or an HPI Check? Quite simply, it’s a generic term. It is not so by accident, either, but because the company has refused to rest on its laurels. It may have been the first to provide comprehensive vehicle history checks (since 1938, can you believe?) and over the years has constantly kept ahead of the game to ensure this leading position is retained. Of course, everyone knows the benefits of carrying out an HPI Check. It’s how you confirm vehicles are legal and really will belong to the people who buy them (with all information backed up by a £30,000 guarantee, for total peace of mind). Most manufacturers actually now incorporate the HPI Check as part of their approved used car programmes. It’s an everyday part of the industry that we all take for granted: don’t forget, nearly two in every three of your online customers is worried about the risk of fraud. Steve Reynolds works at dealer group Stoneacre – and he’s a happy HPI customer. ‘The HPI system is the best bar none,’ he told Car Dealer. ‘We’ve used other systems before, and looked at all the other offerings: nothing beats the HPI checking system. It’s fast, efficient, easy to use and, above all, accurate. In the past, we’ve been caught out by HP agreements that checking systems have not picked up. This is simply not an issue with HPI.’ But how do you exploit the myriad other features offered by HPI? As automotive director Daniel Burgess – pictured right – explained to us, the standard HPI history check really is just the gateway into a legion of services, all of which can help make you money – and keep you fully protected from the strong arm of the law. The core element, the hub of the system, is Exchange. There are two key services – Manufacturer Exchange, a stock locator service used by major manufacturers, and Dealer Exchange, which is of interest to us. Why? Because if you carry out an HPI Check you can automatically load the vehicle on to Dealer Exchange at the same time. It operates like a huge database, which pulls all the specific vehicle information from Glass’s and the DVLA. All you need to do is upload a series of digital images, and it’s ready to publish and therefore go to market – on eBay, Auto Trader, Fish4… over 20 outlets in fact, all of which can be specified precisely by you. It really couldn’t be simpler. Don’t just take our word on the value of the system, though. HPI has recently signed up exhange andmart.co.uk, which will use Dealer Exchange as its premier loading partner. Online manager Debra Healy can’t speak highly enough. ‘It stands head and shoulders above other offerings in the marketplace. Not only is it easy to use, but it’s free to our dealer customers.’ Can’t say fairer than that – as exchangeandmart.co.uk’s one million serious browsers per month will surely agree… Our focus last month was SsangYong, and they’ve since signed up to HPI’s Manufacturer Exchange service, too, joining other makers such as Suzuki, Fiat, Alfa Romeo and Lotus. Again, this allows dealers to instantly market their vehicles

34 CarDealerIss3.indd 34

‘Nothing beats the HPI checking system. it’s fast, efficient, easy to use and above all accurate.’

online, something that certainly convinced SsangYong’s Ian Nicholson: ‘One of Exchange’s many advantages is its independence, meaning our dealer network has complete flexibility over where to market their stock.’ But the offerings from HPI stretch yet further and wider. Dealer Steve Reynolds has been streamlining HPI’s various other services into his business for some time now. ‘If there’s one word that sums up HPI, it’s integrity,’ says Steve.

He’s a happy customer indeed – particularly with the new services offered. ‘I’m confident, when HPI launches a new service, that it will be easy to use and, more importantly, beneficial to me. Everything that they introduce, I know, will make my life easier.’ Did you know, for example, that HPI offers on-screen car valuations? Both CAP and Glass’s used car values are offered online, meaning it’s easier to get an idea of where a vehicle is

CarDealer

2/5/08 10:57:31

From CO2 guides for used cars to V5 document checks – HPI covers all bases. And left, HPI’s automotive director Daniel Burgess

according to your favoured trade guide. What’s more, as Daniel adds: ‘We also offer HPI Valuation, an alternative to CAP and Glass’s that is lower-cost but equally as good. Everyone has their favourite book, but want a second opinion. Since October last year, we’ve been able to say, why not us?’ This service is reinforced by the fact that it’s so easy to use. Full integration means it’s no more hassle for the dealer to use HPI Valuation than

CarDealer

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their other valuation source – Steve again confirms that a key aspect here is ease of use. ‘Like everything HPI brings to market, it’s something that is beneficial to dealers.’ Which brings Steve on to HPI’s ‘Godsend’ for his business: Driveaway. This is a service HPI’s ownership by Norwich Union facilitated – and, in a nutshell, is seven days’ free insurance, which can be arranged immediately from the dealership. And it is no mere headline-grabber.

‘Quite simply, it massively speeds up the deal,’ explains Steve. ‘A decade ago, people were prepared to wait. Not nowadays. People want things straight away – including cars. As they’re already prepared and readied before they go on sale, why shouldn’t this be the case? ‘The hold-up has always been taxing the vehicle. We used to have to do it in the dealers’ name, send it off to Swansea, get it changed to the customer’s name – it took weeks. With Driveaway, we can generate a cover note right away, in the customer’s name, so tax it while they sip coffee and run through the handover process. It’s an excellent system.’ Benefits, however, stretch further even than fast turnaround, more intensive (and profitable) use of floorspace and happy customers. ‘Admin also love it, as they’re freed up from chasing communications with the DVLA and all the other associated hassles. It’s a one-step process for them.’ And anything that keeps Admin happy… HPI’s Daniel adds another benefit. ‘It’s a good way of eliminating buyer remorse. There are no more phone calls from the customer during the lengthy waiting period, saying they’ve changed their mind.’ There are other subtle and smart services on offer, too. Such as V5 Document Check. This ensures the cloning risk is a thing of the past, by validating the V5’s authenticity. ‘We check the V5 serial number and issue date,’ explains Daniel. ‘Crooks struggle to get the issue date, so it’s harder to forge a form from a stolen V5. They actually need to have seen the original V5.’ This service is unique to HPI, too. Oh, and all HPI certificates are available by e-mail. So, if a car is clean, the dealer can run the check and immediately give customers the forms. This is immensely beneficial: there are times when it could even be a deal-clincher. >

35 2/5/08 10:57:36

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• UK-wide network of 40+ business managers keeping you up-to-date with new products and services • UK-based call centre ensures that all your customer enquires and claims are handled efficiently and professionally • Product training for your staff at our training centre or on-site • Efficient IT and administrative backroom systems to facilitate the sale and management of policies Find out more about becoming an AA Warranty dealer today. Call Paul Hanna on 0114 263 7769 or visit www.aawarranty.co.uk/dealers for more information AA Warranty is a trademark of The Automobile Association Limited and is used with their permission under licence to Motorway Direct Plc. AA Warranty is provided by AA Mechanical Insurance Services Limited, an appointed representative of Motorway Direct Plc who are authorised and regulated by the Financial Services Authority, authorisation number 311741. AA Mechanical Insurance Services Limited, 1 Waterside Court, Bold Street, Sheffield, S9 2LR. Registered in England & Wales No. 5987949. Group VAT registration: 804 0501 84.

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Call 0114 263 7769 2/5/08 10:57:37

HPI

‘I’m confident when HPI launches a new service that it will be easy to use and, more importantly, beneficial.’ CLOCKING ON HPI’s National Mileage Register has been running for over a decade now, with one stated aim – eliminating clocking. Records come from a wide array of sources, but HPI has recently clinched some fantastic relationships with major manufacturers. This has taken the records held from 80m to an amazing 125m. ‘We’re sourcing warranty data from major manufacturers such as BMW, Toyota, Ford and Land Rover,’ explains Daniel. ‘This is good quality data, too, as dealers are very careful about using the right mileage for warranty data, in case of auditing. Warranty information is a good source of 0-3-yearold details, though we also use data from Mondial, Warranty Group, Car Care Plan and so on, for older cars.’ Prestige car retailer Sytner has also just come on board. Employed across more than 100 dealerships UK-wide, Sytner will use all aspects of HPI’s provenance checks, including the National Mileage Register. HPI will provide all manufacturer-approved checks and mileage investigations. What convinced them? HPI’s ability to offer a tailor-made service. And staying on the luxury theme, Bentley

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Motors has just been given HPI ‘Approved’ status. That means all Bentley’s dealers can use HPI for provenance checks. Offering added reassurance to Rooney, Lampard and legions of other Premiership football players… It’s not something that’s a problem with Wayne, but for most other customers a problem remains in the industry: finding out who they are and getting their vitals. ’30 years ago, when I worked in the industry, taking down names and addresses was a real issue,’ explains Daniel. ‘And this remains the case! My partner and I were buying a new car recently: we went round 15 dealerships and only one took our details.’ Which is why HPI offers the CRM (customer relationship management) sheet. It’s ingenious. A print-out sheet that the dealer can fill in as they talk to the customer, for uploading later. It brilliantly has a box for the car’s registration, too. Take five seconds to fill this in, and a mass of data will be back-filled, saving further time and proving even more useful to the dealer. ‘It’s not sophisticated, but it’s a really practical tool,’ says Daniel. Even for former conquests, HPI has an offering, which saves time and money, and

improves lead management, too: Customer Watch. ‘This uses DVLA data to see if former sales have since changed hands,’ explains Daniel. ‘Privacy laws means we can’t say who the new owner is, but we can tell dealers if the car is still owned by their customer – so they can target proactive marketing and also not send out service reminders to vehicles that have since changed hands.’ This is an ingenious tool that the switched-on dealer will find many more uses besides the most obvious. Indeed, that’s something which sums up the entire arsenal offered by HPI – particularly as you can be sure that it’s all powered by the largest, most accurate and most powerful database in the business. Look at HPI not as a mere provenance check provider but, if you’re canny, an entire toolbox of tools to help you speed up sales, better serve existing customers, target new ones... and ensure the dodgy ones out there are quickly wheedled out before they cost you a penny of precious profit. With another battery of new products due before the end of the year, the strength of the offer will only increase, too. You certainly know HPI – but maybe now it’s time you got to know it better.

37 2/5/08 10:57:48

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2/5/08 10:57:53

Peering into the lives of the motor trade...

ON THE SPOT Name: Simon Tennyson Age: 43 Job: AA Warranty, managing director wrong with that!

Name: Simon Tennyson Age: 43 Lives: Wakefield Any family? Married with two sons, aged three and eight. What do you drive? I have a couple of cars including a classic – it’s my one indulgence.

What was the first record you bought? The Sweet – Blockbuster. What’s your favourite film and the last one you saw? My favourite film has to be Leon. The last film I saw was Die Hard 4.0.

What was your first job? Claims assessor for CIS Insurance.

Favourite football team? Sheffield United all the way!

What was your first car? 1977 Skoda S100 something or other!

Favourite holiday destination? I have a villa in Spain, up in the hills of the Costa Del Sol. It’s a great place to go with the family while they’re still young.

Who do you work for now? I’m the Group managing director of Motorway Direct. AA Warranty is part of the Motorway Direct group of companies.

Have you got any superstitions? I live in quite an old house so it can be rather eerie, particularly at night when there’s no-one else in.

What does this involve? I’m responsible for the overall management and profitability of the Motorway Direct group, so as you can imagine I’m very rarely out of work mode, or off my mobile phone! What would you say are your job’s biggest challenges? Predicting changing market conditions and distributions. Any downsides? I’m never off my mobile phone and it’s long hours! How much do you earn? No comment. Do you have an average day and how does it pan out? Usually up at 6.30am, in the office by 9am. My day generally

‘As the credit crunch bites, making decent margins has probably never been so challenging.’ consists of the gym between 7-8am, meetings, team management meetings, client meetings and strategy planning.

What is the most expensive thing you’ve ever bought? Next to my house, a flash car (or two).

What newspapers/magazines do you read? I love vintage car magazines, so all of those!

What’s your mobile phone ring tone? Beethoven’s Fifth Symphony – and there’s nothing

What is the biggest challenge car dealers face? The tightening of FSA regulation is a tough one for dealers. Sales of new cars are down as the credit crunch starts to bite, so making decent margins has probably never been so challenging. What would be your number one tip for car dealers? Understand the value of GAP insurance in order to communicate the benefits to customers. Especially in the current financial climate, people can ill afford to stand the loss between what they paid for a car and it’s preaccident worth, for instance.

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

CarDealer

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39 2/5/08 10:57:59

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2/5/08 10:58:00

cult cars tried and tested

...That was a good idea, with Autotrade-mail’s Kevin Watson

Survey’s a corking idea E

VERY month Autotrade-mail’s Kevin Watson recalls those good ideas, hints and tips that can really help you. If you’ve got a good idea that other dealers should know about, get in touch with Kevin using the details below or call him on 0870 2000 848 – he’s offering £100 for the best idea every month!

Lifestyle questionnaire A good idea that paid dividends at my old dealership was the lifestyle questionnaire. We would ask our prospective customers to complete this while we would be carrying out the appraisal on their part-exchange. Before the introduction of this form it seemed that when we went out to the customer’s car they would simply wait in the showroom with a sense of trepidation, almost fear, of what my sales manager and I would find wrong or offer invite. We had a fantastic turnout and replicated for their vehicle. However, when we left them this process with various open weekends/events with this tick box form with a champagne comwith garden centres, wine tasting and golf clubs petition, they seemed much more at ease having without once suffering a low turnout. As an something to preoccupy their minds. added bonus, the answers to the question ‘what As soon as we returned, I would simply whip prompted your visit to our showroom?’ were away the lifestyle form that they had completed extraordinarily precise. ‘I saw your rear window thanking them for their trouble and re-confirming that it would be entered in our end-of-month sticker in a car at Tesco’s car park,’ was not undraw. At this point I would glance at the box near typical of the answers we received! the end that asked about their funding choice for Booked up their next vehicle, further helping me with my qualification. The majority of the tick boxes were I have been talking to a car sales manager recently who recounted a story of the time he was very light-hearted and were far from conveying out shopping for a high quality music system that that we were only interested in their money. We he had decided to treat himself and his family to. had a favourite hobby section so, even if we did He had visited a number of shops and, follownot sell the prospect a car, we could invite them ing a good demonstration with his questions and their partners to future dealership events satisfactorily answered, he made the decision to that we knew would be of interest. One time we decided to hold a culinary evening purchase in the knowledge that delivery would be within a week to 10 days. Assuming that he at our showroom, so we went back through our lifestyle questionnaires accumulated over the pre- would now have to wait for a week staring at his vious 18 months. If there was a relevant tick from receipt in eager anticipation, he was delighted ATO45 Car Dealer Ad 20/2/08 15:21 Page 1 a prospect or their partner then they received an when the salesman said: ‘We have a copy of the

instruction book for the model you have just ordered. Would you like to take it away with you?’ Naturally he jumped at the chance and admitted that this was the first time he had ever really read through an instruction book cover to cover – his normal approach being to unpack the goods, try and set it up and then refer to the instructions out of frustration when it didn’t work! When his Hi-Fi was delivered the following week and, having had the benefit of reading the instructions in advance, the whole process of installation went like a dream with the added bonus that he understood additional features he would never normally have found out. From that point forth, wherever possible, he ensured his customers were provided with a loan copy of the owner’s book at the point they ordered the car. They really did appreciate this gesture and, while his team would invariably receive the odd phone call from the customer with a question between order and delivery on something they had just read, the benefit they got out of it was definitely of value to them.

That was a good idea!

Kevin Watson FIMI is a Director for Autotrade-mail and has worked in Franchised Motor Dealerships for over 30 years.

Run by dealers for dealers Est 1999

CarDealer CarDealerIss3.indd 41

“I am not trying to re-invent the wheel, I cannot give you a simple solution to profitability but it does occur to me that over the years we have all introduced good ideas in our businesses but sometimes stop using them. Why? They are still good ideas! I speak to dealers right across the country on a daily basis and therefore “Car Dealer” magazine has invited me to run a

monthly article to simply remind us of these good ideas. I thought this in itself was a good idea! This is not a profit clinic, nor really a best practice plan. They are not my ideas, simply a monthly page to remind all of us of what we probably used to do anyway! I hope you find it of some value.”

If you want to remind us of a good idea then please contact: kevin@autotrade-mail.com and I will send £100 to the best idea that is published.

41 2/5/08 10:58:02

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2/5/08 10:58:03

feature H

will be key. That’s why we’re being so uncompromising.’ By 2013, the UK will be Infiniti’s main market in Europe, accounting for a large proportion of the region’s aimed-for 25,000 annual sales. In the build-up, though, he admits the unique challenges of the UK are presenting Infiniti with real issues to overcome. ‘When we brief our agents, we say we want an arterial road location, with good visibility, good access. You and everyone else, they tell us!’ Despite this, Gray stresses how important location is to Infiniti’s plans. ‘We want locations where, six months after opening, the traffic is so high a big percentage of the local population know where it is.’

ow do you launch a new car brand in the UK? That’s the challenge faced by Infiniti. Nissan’s luxury division is truly massive in the US, but until now has not been seen in Europe. That will change next April, when the Lexus-like brand takes its UK bow. It’s a daunting task. Premium is where it’s at nowadays, with the might of BMW, Mercedes and Audi looking fearsome challenges for anyone, never mind a brand completely without establishment. But this, explains regional director Angus Gray, is very much to Infiniti’s favour. And dealers are to play a vital role in this. ‘Our legacy will be the appointments and locations we make now,’ says the Scot. ‘When we look back in 10 years’ time, this

THE DEALERS Infiniti plans 14 sales points in the UK by the end of the European launch roll-out in 2009: across the region, there will be 78. We have already seen Russian-style supersized ‘boutique’ dealers, with showrooms of around 3,000sqm. They won’t be so large in the UK. Gray reckons on around an acre of footprint, fitting the brand’s initial sales targets, and also reflecting the cost of land in the UK. ‘It is a unique issue for this country,’ he explained. They will all be built to the same global standard, developed two years ago. Called ‘IREDI’ – Infiniti Retail Environment Design Initiative – the dealers are guaranteed to >

If you thought launching a new model was a big job, try a new brand. Richard Aucock gets the Infiniti lowdown

Infiniti

& CarDealer

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beyond

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infiniti be dramatic and stand-out (the Infiniti ‘wall’ is said to be a particularly outstanding focal point, especially at night). They will be more like luxury hotels than traditional car showrooms, with lots of light and natural materials. Synergies with the cars are not just coincidental: the whole design concept was signed off by the same guy responsible for the cars, too. Whether it’s a brochure, the car, the dealership – all have the same subliminal feel. Infiniti interviewed premium customers, and discovered a key frustration was, with such a huge variety of model and trim choice on offer, the unlikeliness of the exact spec of car they’re looking for being in stock. Solution? A huge plasma screen, which ‘virtually’ shows the chosen trim and colour of car, with the chosen wheels… then the customer can choose from 1.5-metre rectangular sections of leather, cover a seat in the showroom, replicating their choice of pew, too. ‘It’s something we’ve taken from high-end furniture shops,’ said a spokesman, and proof of the innovative thinking Infiniti is implementing. Taking them through the process will be Infiniti staff following the ‘Total Ownership Experience’ philosophy. This is, says the brand, a promise to customers that they can buy their car in a welcoming environment free from pressure, with expert advice and freedom from worry afterwards. TOE, in short, is part of the brand’s DNA, underlining how crucial the experience is to Infiniti’s message and success. High-line stuff. However, the challenge of having so few sites remains. How do you overcome this, when Audi and Mercedes have 10 times as many outlets, and BMW, 12 times? Work smarter, reckons Gray. ‘Look at IKEA – it is interesting where they have sites: it is not dissimilar to our plans. Obviously, they are more mature, but the model is similar. The initial level of investment is high, but this high cost of entry is offset by an enormous proportion of the population being able to easily access them. We will enlist our originating footprint in a similar way.’ There will be just one dealer in Scotland, though. Surely this is a problem? Gray admits the Glasgow-based dealer will demand huge distances from customers. ‘Here, in particular, we will have to operate cleverly,’ he says. ‘History shows people are prepared to travel to buy a car, not to get it serviced. We will therefore put great emphasis on looking after them once they have acquired.’ Gray says Infiniti will impose a strict programme of car collection, of chauffeuring services and other work-smart means of eliminating the issue of a small footprint. ‘We will simply take the problem away for customers,’ he added. Gray says it is unusual for such a scheme to be offered generically too: ‘Individual dealers often look at the value of a customer before offering such services. With Infiniti, it will be standard.’

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‘Inifiniti will be a performance brand with no cars producing less than 300bhp.’

A luxury look and experience is key to Infiniti’s plans in the UK

CUSTOMERS AND THE LUXURY MESSAGE Customers will, of course, come predominately from the establishment. So that is indeed BMW, Mercedes and Audi, with the bulk of buyers coming from the Munich marque. ‘We are compared to BMW all the time: like them, we make either rear-drive or 4WD drivers’ cars,’ explained Gray. ‘Even so, we’re still surprised about where some are coming from. The volume will follow a standard distribution curve and, naturally,

come from the established brands – but on the fringes there are some real eye-openers.’ Price wise, Gray says Infiniti is up against a lot of extremely competent cars. Buyers who are spending this sort of money, he says, are very aware of what’s going on. Hence the decision to position Infiniti as a performance brand, with no car producing less than 300bhp, and no pesky four-cylinders diluting the message. Diesels will follow, but not until the second phase of the launch, in 2010: the V6 unit will

CarDealer

2/5/08 10:58:08

The infiniti cars EX37

Billed as the world’s most powerful compact crossover, Infiniti hopes this machine will do in the luxury sector what the smash-hit Nissan Qashqai has done for family hatches. The 306bhp 3.7-litre V6 is petrolonly for now, it’s avant-garde and features much of the hi-tech-never-seen-before equipment offered in Infiniti SUVs. Paint that, when scratched, selfheals itself? You’ve got it…

FX37 Infiniti regional director Angus Gray

This will be Infiniti’s topseller, taking 80 per cent of European sales. The brand-new machine was unveiled at this year’s Geneva Motor Show, and uses a 315bhp 3.7-litre V6 petrol, coupled to a seven-speed auto and intelligent four-wheel drive. Even this doesn’t want for equipment, with 20-inch wheels, active damping and, goes the promise, one of the most luxurious SUV interiors around.

FX50

If your customers want the best Infiniti, steer them towards this: the 385bhp, 5.0-litre V8 range-topper. It has 21-inch wheels. DVD sat nav. ‘Around View’ monitor (which makes for idiot-proof parking). Even rear-wheel steering, for goodness sake. It arrives in October, and has just been launched to the press – who, on first evidence, seem rather impressed by it.

G37 Saloon

Infiniti is targeting the German four-door saloon here, and has taken the G37 to the Nurburgring in order for it to do so. Diesels will follow but it’s the 3.7-litre V6 only, for now, in six-speed manual or seven-speed auto guise. A rear-steer option is available here, for hi-tech driving dynamics that may attract former Mitsubishi Evo buyers who love their Japanese machinery but have grown up. No German car will pack this much equipment for the money, either.

appear in the EX and FX, along with a Jaguar XF rival that is more Merc CLS than Audi A6 in appearance and style. But it is not just customers who are going to be pampered. It sounds like Infiniti sales staff are in for a treat, too. ‘We plan to take staff away for initial training – we are running an event in Berlin, in September, where they will all stay in a five-star hotel. Indeed, all staff are to experience this, so when they’re back at the dealership they will understand what

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the luxury difference is, the types of customers they will experience and the exacting expectations they will have. ‘We want to raise awareness for what good looks like, reset what the perception of it is. That’s why all staff, including technicians, will get the same five-star treatment and experience.’ Gray says the service ramp-up will be made easier for those technicians as, obviously, Infiniti is starting from a parc of zero. >

G37 Coupe

If a Merc CLK is too commonplace, Infiniti’s rear-drive two-door coupe hopes to attract with lots of luxury, lots of equipment and, again, lots of ccs; its 306bhp from a 3.7-litre V6. The lack of diesel will be less of an issue here; more relevant will be all that trick drivetrain kit that may make it a surprise hit with keen drivers after upmarket luxury. Again on the Mitsubishi theme, you can’t get an Evo coupe…

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infiniti

Infiniti dealerships will look like top-class hotels

The service department will not be rushed off its feet, and this soft landing will help it perfect looking after customers. Increasingly, premium brands are operating service departments on volume car levels: Infiniti hopes to differentiate itself with a much more personal – and, so the thinking goes, higher – level of service. AND FOR DEALERS? The qualifier for dealer recruitment and the levels of customer service Gray expects them to offer is, simply, premium-brand experience. As such, actual rules and guidelines are, despite what you may fear, few. ‘It is more about delivery than hugely exacting standards,’ he said. ‘We are keeping things simple: it is all about the execution.’ Look at the artists’ impressions of Infiniti’s centres, and you could be swayed into thinking costs will be massive. Gray refutes this: ‘Investment will be similar to any other premium brand – it’s not off the scale.’ Property acquisition is running in parallel with the launch: Gray says that if this was done sequentially, it would take much longer. ‘We’re at an advanced stage here, but confidentially means I can’t say much more at the moment.’ Gray is keen not to jeopardise current plans. ‘But it is not over until the dealerships actually open.’ Indeed, if all of this sounds of interest, Infiniti may reciprocate. Gray admits he’s still

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‘It is more about delivery than hugely exacting standards. We are keeping things simple: it is all about execution.’

open to proposals from those interested in carrying the Infiniti franchise. Initially, Infiniti wanted to follow its European model, and recruit a single dealer group for the whole country. However, here again, the UK is different, so the decision was made to select multiple partners. However, says Gray: ‘We want to keep the number of partners to a mini-

mum – this is healthy for the business. Therefore, we’re looking at multiples. But the drive distances for some outlets on the periphery are huge – Newcastle to Glasgow, for example, is three hours. Thus, some can sit on a freestanding basis. If someone has premium experience and the capability to add more business, there may be potential for discussions.’

CarDealer

2/5/08 10:58:22

If you had more leads, could you sell more cars? With 9 out of 10 car buyers doing some or all of their research online, the Internet cannot be ignored as a source of quality leads. Is your site coming up on the first page of results on Google for the searches these potential customers are actually doing? BuyYourCar.co.uk does. Call BuyYourcar to find out how you can be part of the fastest growing independent car sales site in the UK.

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WE’VE INVESTED £15 MILLION TO DRIVE BUSINESS THROUGH YOUR DOOR. We’ve launched our biggest ever advertising campaign. It will reach 92% of UK adults and be seen everywhere, from television screens to fuel pump nozzles. And why are we doing this? One reason - to increase footfall to your dealership. To find out how we can help you sell more cars more profitably, simply call us now on 08444 706 760 or visit www.yourworldmadeeasy.co.uk

CarDealerIss3.indd 48

2/5/08 10:58:23

products 1. Clarion FB278RBT

Price: £149 Contact: www.clarion.co.uk HAS Clarion killed the CD! The firm’s latest stereo doesn’t even come with a slot to play discs. Instead, the unit uses Bluetooth streaming from your mobile phone to play tracks or you can insert an SD memory card. It connects to your mobile via wireless technology so you can access music stored on your handset and it’ll let you make and receive calls handsfree too. If you don’t have a Bluetooth phone you can listen to digital MP3 tracks stored on a memory card.

2. Autoglym Wheel Care Kit

Price: £25 Contact: www.autoglym.co.uk WHEN it comes to cleaning wheels you need all the help you can get if you want to get them looking tip-top! This Autoglym kit combines four of the firm’s popular products to help you get the job done. It all comes bundled together in a handy carrier bag and you save £4 by buying the items together rather than individually.

3. Knight Rider R/C Car

Price: £30 Contact: www.firebox.com FORGET David Hasselhoff, the real star of 80s cult show Knight Rider was KITT – the talking car! Knight Industries Two Thousand – to give the machine its full name – was a customised Pontiac Trans-Am and the stuff of many boys’ dreams. Now, you can get your hands on your very own remote control version.

4. Princeton Tec Apex

Price: £70 Contact: www.blacks.co.uk TRY fixing something under the bonnet and you’ll soon realise you need both hands free to get the job done. This professional-quality Princeton Tec Apex attaches to your head with an easily-adjustable elastic strap and features a microprocessor that constantly regulates output for optimum battery life.

5. Sonic Scrubber

Price: £15 Contact: www.sonicscrubber.co.uk IT’S time to get tough with your wheels – and tackle them with a sonic boom! The Sonic Scrubber is like an electric toothbrush using a hightorque motor to help you shift the slime from those hard-to-reach places.

5 7

6. AutoPod

Price: £345 From: www.hamiltonclassic.co.uk GOT a classic you want to protect? Then the AutoPod is perfect. It’s a fully-enclosed outdoor shelter that’s weather and UV resistant. It has a tough PVC floor and vents to keep air circulating inside.

7. CarPlan EcoCar Range

6 CarDealer

CarDealerIss3.indd 49

Price: from £5 Contact: www.carplan.co.uk THERE are loads of ways to make your car dealership more eco-friendly – including in the valeting bay! This new CarPlan EcoCar range has been specially formulated to be as natural as possible. All the cleaning agents are derived from vegetable and plant extracts with ingredients picked from sustainable resources.

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2/5/08 10:59:02

used cars

...in association with CAP

CO2 squeeze on drivers will impact on car values Motorists are just getting used to the idea of paying VED based on CO2 emissions. But what will it do to prices?

he recent budget announcement of intended hikes in vehicle excise duty for the highest polluting engines from next year was another reminder of the CO2-based squeeze on motorists. It seems almost certain that ever-rising costs associated with CO2 will impact on demand for cars, with customers increasingly looking to mitigate their costs by choosing lower emission vehicles. That is what prompted CAP to incorporate CO2 figures and VED bandings in the Black Book, from the May edition. But, as previous research into fuel economy has shown, there does remain a hard core of drivers who will choose performance first and worry about the associated costs later. To assess where the market is right now – and where it is heading – dealers were asked their views on the impact of increased taxation for higher CO2 vehicles. A 58 per cent majority believe customers will move towards lower CO2 vehicles as the tax increases begin to bite. A further 13 per cent believe it is already happening, with increased demand for lower emission cars, in comparison with others. Interestingly, however, the ‘hard core’ drivers who put performance and the specific car they like ahead of other considerations remains significant. A third of all the dealers questioned reported an opinion that their customers

‘It sometimes seems used car buyers have lost sight of the economics of fuel.’ would not be changing their vehicle choices on the basis of CO2 output any time soon. Dealers in the north east gave the biggest indication that vehicle choices may already be changing on the basis of CO2-based taxation measures, with 36 per cent reporting they are already seeing the change. This contrasts with three regions where no dealers reported that customers were already moving away from higher CO2 cars – Northern

Ireland, Wales and the north west. At the same time, diesel has grown in popularity and it sometimes seems the retail used car buyer has lost sight of the economics of fuel. It clearly makes sense to a high mileage family car driver to pay the additional retail premium in return for enjoying the benefits of improved fuel economy, provided they drive enough miles to re-coup the initial front-end cost of choosing a diesel. For the small-car driver, front-end retail price premiums have also been strong. But in the case of small cars it is unlikely fuel cost savings will truly justify paying up to £500 or even £1,000 more for the diesel variant.

How far will customers travel? Now they’ll want even more ONE of the well-chronicled impacts of the internet has been the ability of customers to research offers from further afield than before. This is again confirmed in the latest research by CAP, which reveals customers are now travelling significant distances to buy used cars. Dealers were asked what percentage of their used car customers came from outside a 25-mile radius. Taking the national dealer sample as a whole, 42 per cent reported that between 21 and 30 per cent of their customers travel more than 25 miles to buy. A third put the figure even higher, at 41 to 50 per cent of their customers.

52 CarDealerIss3.indd 52

‘Customers can research deals from further afield online.’ The results were broken down and revealed that the area of Britain which sees dealers reporting the furthest travelling customers is the south east. This region saw the highest percentage of respondents reporting that customers routinely travel significant distances to the dealership. In this region 55 per cent of dealers reported that 41-50 per cent of their customers came from outside a 25-mile radius.

TRADE values have so far this year remained strong, despite concerns about consumer credit. A reasonable assumption in the current climate would be customers are even more demanding in terms of price and the overall deal on offer. If that is so, dealers are caught in a tough place between strong trade values and squeezed margins. To test the anecdotal evidence, CAP asked dealers whether strong trade values were putting a squeeze on margins. The answer was an unambiguous yes from 74 per cent of those questioned. But not all dealers are succumb-

ing to the squeeze. According to 24 per cent, they are simply increasing their prices to maintain margins. Only two per cent responded by saying they had not noticed any particular issue. When the results of this research are broken down by region it seems dealers are having a significantly tougher time in some areas than others. For example, compared with the national average response of 74 per cent, Scotland saw 93 per cent claiming that they could not raise their retail prices to account for strong trade values.

CarDealer

2/5/08 10:59:04

Trading places z

...in association with BEN

We pass the baton on... Our elaborate bid to raise as much money for BEN by trading cars moves into the hands of the pros – James Baggott reports on the latest

T’S time to bring in the professionals! We always knew there was only so far Car Dealer could take the Trading Places feature before we needed help, and now we’ve got it. The first firm ready to take on the challenge of turning our initial £1,000 baton into even more money is HS Cars of Chichester. Headed up by Mark Boyt, the dealer specialises in sports and prestige motor cars, selling to customers across the Hampshire and Sussex area. Our helpful friends at Autotrade-mail put Mark in touch with us and he was more than willing to help raise some cash for automotive industry charity BEN. ‘I’ve been reading the feature in the magazine and when Kevin from Autotrade-mail got in touch I knew I could help,’ explained Mark. ‘It’s for a good cause and we’ll be doing all we can to increase the pot of cash.’ Mark already has a car lined up for the feature and is in the proc-

The Kia Clarus – our next ‘baton’ for BEN – and below, HS Cars who’ll be selling it

‘It’s the right kind of car at the right kind of price that’ll catch someone’s attention.’

ess of preparing it for sale. ‘I’ve take in a Kia Clarus saloon, in part exchange for a Mondeo diesel, and it’s perfect for this challenge,’ explained Mark. The

car is a V-reg, 70,000-mile, one owner example and Mark thinks it’ll be snapped up by an older buyer. ‘It’s just arrived so we’re in the process of cleaning it up,’

You can help raise cash for BEN too! THE plan is simple – raise as much money as possible for automotive industry charity BEN. How? With a motor industry-inspired relay race and your help. Autotrade-mail donated our first car and we tried to sell it for as much money as possible. We managed to get £695 for it, and impressed with our efforts

Autotrade-mail made it a round £1,000. Now Mark Boyt holds the cash in the Kia and will be attempting to make even more! We still need willing dealers to take up a leg of the relay. Call Car Dealer on 023 9252 2434 or email james@blackballmedia.co.uk if you’re willing to help out a worthwhile charity.

added Mark. ‘It’s a very tidy model and only needs a decent clean to make it saleable. It’s got an MOT until September, but I’ll put a year on it to make it even more attractive.’ Mark plans to put the Kia on his website – www.hscars.co.uk – and he’s pretty confident he can get £1,495 for it. ‘We get a lot of passing trade and it’s the kind of car at the right kind of price that will catch someone’s attention,’ added Mark. ‘I’m sure we’ll sell it in a week.’ We’ll catch up with Mark next month to see how he’s got on and find out who’ll be taking up the baton next. It could even be you!

It wouldn’t have been possible without...

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53 2/5/08 10:59:06

tail light

Sub-Prime Time

s I write this, it looks as though we’re entering a completely new era in non-standard lending in the motor finance market. By the time you read this, all the rumours that are circulating at the moment will have been confirmed, denied or qualified. However, it is clear to me that the majority of nonstandard motor finance providers are either withdrawing their facilities from the majority of mainstream dealers and are concentrating on lending to their in-house dealerships, or just to one or two key relationships, leaving the main market unsupported. This comes on the back of Ernst & Young’s recentlypublished 2008 Car Dealership Report which noted that 49 per cent of small to medium-sized dealers (sales less than £100m) posted annual losses in 2007. That’s a huge percentage of small to medium-sized dealers who didn’t manage to break even, and who are now going to find it increasingly difficult to place business. This obviously is a concern, and poses a significant risk to the future sustainability and wellbeing of independent car retailers. Surprisingly, these non-standard finance providers are withdrawing their support from the market just at a time when point of sale finance is being seen as more competitive and more attractive to the customer, as unsecured lenders tighten their belts. Moreover, nonstandard lending is predicted to grow rapidly this year, as the credit crunch pushes previously prime customers into this market. By the time Car Dealer is published in May, I’m wondering if First Response will be the only finance provider offering facilities to the whole of the small to medium dealer market. It certainly seems to be going that way. As a well supported, funded and resourced business First Response will be continuing to support our target

‘Non-standard lending is predicted to grow rapidly this year, as the credit crunch pushes former prime customers into this market.’ market, but the impact of the recent changes may put some strain on our service turnaround times, but we’ll try to maintain our normal standards as we gear up to meet the needs of our dealers. The finance market is clearly changing, but so is the dealer market. I’ve mentioned a number of times that there’s a need for dealers to carefully consider their current stock. We’re starting to see a strong stocking shift towards cars that are cheaper to maintain, insure and tax, and away from the gas guzzlers, 4x4s and prestige cars. This year clearly isn’t going to be an easy one, but with the right stock, good customer service, support from your finance providers and a focus on F&I, dealers can – and will – weather the storm. Let’s face the facts – the immediate future looks tough, but as the economy stabilises and customers regain their confidence, sales volumes and margins will increase once more. If you need support or advice in regard to stocking for the non-standard market, or how best to ensure your customer gets an appropriate offer of finance, please contact us and we’ll be glad to help.

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

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Maserati Quattroporte Ferrari firepower, BMW luxury but is Italian a real rival?

Scam!

Crooks’ latest con revealed

Interweb

How to boost proﬁts online

HPI sight

Why you should check every car

TESTED: AUDI RS6 + BMW M3 DROP TOP Plus! The inside story on luxury brand Inﬁniti’s UK launch plans

54 CarDealerIss3.indd 54

CarDealer.

PO Box 227 | GOSPORT | PO12 9DE Tel: 023 9252 2434 | www.cardealermagazine.co.uk

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

Sales Executive Darren Stokes E: darren@blackballmedia.co.uk T: 023 9252 2434

Advertising Manager Jon Baggott E: jon@blackballmedia.co.uk T: 023 9252 2434

Picture Editor Mandy Taylor E: mandy@unp.co.uk T: 01274 412222

Contributors Mike Askew, Stewart James, Richard Aucock, Bob Hume, Tom Scanlan, Mike Hind and Kevin Watson Thanks to... Karen Hughes, Sarah Harlow, Justine Hoadley, Tim Marlow and Danny Lee

Car Dealer is published by Blackball Media Ltd (Company No 6473855) and printed by Warners. All rights reserved. Conditions of sale and supply include the fact Car Dealer shall not, without our consent, be lent, resold, hired out or otherwise disposed of in a mutilated way or in any unauthorised cover by way of trade or affixed to or as any part of a publication or advertising, literary or pictorial matter whatsoever. Car Dealer is fully protected by copyright and nothing may be printed wholly or in part without permission.

CarDealer

2/5/08 10:59:17

0115 946 6370

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

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