F&I Management & Training

The fleet industry could be sitting on a residual value timebomb because some leasing companies are over-estimating the future values of their cars. Many leasing firms are still using the record used values of the last 24 months as a guide to what will happen in the next couple of years. However, rising interest rates could lead to less used car buying activity, affecting leasing firms' financial results which, in turn, will lead to higher leasing rates for fleet customers. Ian Tilbrook, managing director of ING Car Lease, said: 'Fleets want competitive prices but also continuity of pricing and the actions of some leasing firms are a danger to that. 'This practice of setting inflated residual values could be extremely damaging to the sector, particularly at a time when money markets are in turmoil and there is a distinct lack of clarity as to the highs and lows of interest rates and inflation.

DATED: 25.08.07

FEED: AW

CAP has appointed Claire Treloar to the newly created post of key account manager - consumer media. CAP data already underpins a wide range of consumer-facing new and used vehicle information sources, including Autotrader, Which? Motors.co.uk and Jamjar. The creation of the new Consumer Media sales post represents CAP's ambition to grow in this area. Treloar joins CAP from Emap Radio, where she was a regional account manager.

DATED: 25.08.07

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A survey of labour rates at franchised and independent workshops have revealed a north-south divide in prices. The Warranty Direct Labour Rates Survey 2007 reveals Greater London is the most expensive region in the country with an average labour rate of £89.78 per hour when combining both franchised and independent garages. The capital was also home to the most expensive dealer in the country charging £183.30 an hour. The 10 highest counties were all from the south of England, including Hertfordshire (£86.68), Essex (£80.20) and Berkshire (£78.76).

DATED: 25.08.07

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Kia Motors UK's new managing director has signalled an end to the pile 'em high, sell 'em cheap adventure that saw the South Korean brand become the fastest growing car company in the country. It was a strategy which worked well when the Koreans took over the UK sales operation from importer MCL at the end of 2002. Last year sales started to decline, however, and this year has seen sales nosedive 27 per cent as Paul Philpott and his new management team re-align Kia's image. 'We have got to be more confident in our products and the sales and marketing message that we put out,' said Philpott, who has been in the Kia hot seat for six months. 'The brand grew quickly off the back of cheap vehicles which were well put together. But since the end of 2005 we have seen sales decline around 40 per cent as our price advantage has been gradually closed down.'

DATED: 25.08.07

FEED: AW

Car dealers generate an average of £375 in revenue for each warranty sold in the dealership, according to new research.
On a 12-month warranty period based on a one in four claims ratio, a dealer generates around £235 on each claim and a further £140 on a driver getting their car serviced at the dealership.

Research by insurance company MB&G found that the two transactions generated around £185 in profit for the dealer and also provided the basis for an on-going relationship with the customer.
“Dealers should focus on selling any value added package that encourages regular communication between them and the customer and that gives them a reason to come back again,” said Kevin Pearce, MB&G’s operations director.
“Too many dealers are looking for a quick profit fix and choose to sell items that only give a one-off benefit to their bottom line.”

DATED: 23.08.07]

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Automotive manufacturers must deliver greener vehicles if they are to cope with future demands from the lucrative fleet market, according to accountancy firm Deloitte.
Businesses with higher CO2 emission vehicles in their fleet face higher taxation costs in the future, which ultimately will lead to an increase in demand for lower emission vehicles.

Toyota Prius: Could become a fleet favourite
At present the average carbon output for a company car in the UK is around 170 – 180g/km.

DATED: 23.08.07

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Motorists are losing almost £500 in value from their cars every month.
New research from uswitch.com found that the Ford Focus - the UK’s best selling model - is the car which retains its value the least.

Out of focus: UK's best-seller loses most money
The car, which sold 137, 694 units in 2006, dropped in value by almost 48 per cent within 12 months.

DATED: 23.08.07

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£2,000 tax on gas-guzzlers 'would make Britain carbon neutral'.

The Liberal Democrats would raise taxes on the most polluting cars to up to £2,000 a year as part of a package of measures designed to combat global warming. The tenfold increase in vehicle excise duty for the worst offending cars would provide a 'real incentive' for consumers to switch to more environmentally friendly cars, the party's climate change group has said. The Lib Dems propose that zero-carbon vehicles should pay no road tax and claim their plans would ensure road transport emits no carbon by 2050.

DATED: 23.08.07

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Monthly statistics on Britain's used vehicle markets to June 2007 show a 99,953-unit or 2.5% decline in used car transactions to 3.793m in the six months to June. However, figures from the Society of Motor Manufacturers and Traders' shows June used car changes of ownership increase by 4.1% year on year to 656,954.

DATED: 23.08.07

FEED: AW

Car insurance is set to rise sharply because of the summer floods. Insurance companies face an estimated £3.3 billion claims from customers whose homes were inundated. This means they cannot afford to follow the usual practice of subsidising motor insurance with profits from property insurance. As a result the cost of motor premiums must rise by as much as 10%, says Europe's largest firm of non-life actuaries, EMB. Its annual review shows that for every £100 insurers received in motor insurance premiums, they paid out £106.

DATED: 23.08.07

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The improvements in car safety and electronic driving aids are making many drivers believe they are invincible, causing them to take unnecessary risks. Technological mod-cons can increase a driver's sense of security which can then lead to risky behaviour, according to fleet management firm Masterlease. But the Society of Motor Manufacturers and Traders (SMMT) feels that falling accident numbers disprove that theory.

DATED: 23.08.07

FEED: AW

Mercedes-Benz may take legal action to stop China Automobile Deutschland's plans to launch a Shuanghuan Noble mini to be shown at the Frankfurt Motor Show next month. The Noble has a design very similar to the smart ForTwo, except that it has four seats, and its German importer expects to sell it as the EU's cheapest new car at around ?7,000 (£4,800). A spokesman for the Mercedes Car division, which recently took legal action to prevent misue of its branding in the UK aftermarket, said: 'We take intellectual property very seriously and we reserve the right to pursue legal action. (The Noble) is a blatant attempt to copy a product of ours that has achieved cult status worldwide.'

DATED: 23.08.07

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A high-spec, Sat Nav-equipped version of the Civic Hybrid has been launched by Honda (UK) to meet customer demand. The Civic Hybrid EX is now available to order from authorised Honda dealers, with the first customers due to receive cars in November. The EX also features leather upholstery and Honda's Hands Free Telephone (HFT) equipment, which uses Bluetooth technology to allow mobile phone calls to be made safely on the move. It's the first time a Hybrid has featured factory-fitted Sat Nav as standard equipment, meeting a growing demand in the sector - particularly from corporate customers - for high-spec, low emission cars.

DATED: 23.08.07

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Lotus Group is developing a full range of cars for China's Jinhua Youngman Automobile, a privately owned Chinese coaches and truck maker partnered by MAN. Jinhua Youngman will being selling cars in China early next year under the 'EuropeStar' brand, manufactured initially by Lotus Group's owner Proton, which has contracted to supply 30,000 Gen 2 models to YoungmanLotus Group is developing a full range of cars for China's Jinhua Youngman Automobile, a privately owned Chinese coaches and truck maker partnered by MAN. Jinhua Youngman will being selling cars in China early next year under the 'EuropeStar' brand, manufactured initially by Lotus Group's owner Proton, which has contracted to supply 30,000 Gen 2 models to Youngman.

DATED: 21.08.07

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MB&G Insurance, the UK's largest privately owned motor trade warranty specialist has revealed the true cost benefit of a dealer selling a warranty on a used car. The results show that warranties provide a good medium to long term revenue opportunity for dealers by keeping them in regular touch with their customers.

MB&G has estimated that during an average 12-month warranty period based on a one in four claims ratio, a dealer generates around around £235 on each warranty claim and another £140 on a driver getting their car serviced at the dealership. These two transactions generate around £185 in profit for the dealer, but more importantly start an on-going relationship with the customer.

Bearing in mind there are 19 million used cars on the UK roads, customer communication and loyalty must be a dealer's main consideration for long term profitability. "Too many dealers are looking for a quick profit fix and choose to sell items such as paint protection cover to a customer that gives a one-off benefit to their bottom line. They may sell a used car with paint protection without a warranty and risk never seeing the customer again, which is a very short term approach," explained Kevin Pearce, MB&G's new operations director. "Selling a warranty generates revenue and profit, but also gives the dealer regular contact with a driver and an opportunity to develop a long term relationship which will generate more revenue. Why not sell paint protection cover and a warranty and benefit from both opportunities?" he added. Other packages that are worth a dealer selling, according to MB&G, are MOT insurance which covers any work that may be needed in the driver's next MOT, GAP Insurance and Vehicle Replacement Insurance. "Dealers should focus on selling any value added package that encourages regular communication between them and the customer and that gives them a reason to come back time and time again," said Pearce.

DATED: 21.08.07

FEED: AW

Longer, lower and lighter than its five-door sister car, the new Kia pro_cee'd - to be debuted at the Frankfurt International Motor Show on 11 September - brings yet more style and more sportiness to the C-segment in Europe. "The new Kia pro_cee'd offers consumers sensationally stylish looks with a truly sporty feel to the driving experience, while also retaining most of the practicality and versatility of the popular cee'd five-door hatchback," enthuses Jean-Charles Lievens, Senior Vice President Kia Motors Europe. "With performance, ride and handling that is even more responsive, the pro_cee'd will attract European consumers who find three-door cars particularly appealing."

DATED: 21.08.07

FEED: AW

EurotaxGlass's, the publisher of Glass's Guide to Used Car Values, reports that many used prestige-brand estate cars have become increasingly affordable over the past year, with the price premiums being paid over equivalent used saloon models falling markedly. In the case of the BMW 320d, the premium for a one-year-old Touring (estate) model over the comparable saloon version stood at £1,275 in August 2006, but by this month that premium had fallen to just £625, a drop of 51 per cent or £650 year-on-year.

DATED: 21.08.07

FEED: AW

Audi is set to launch a new ‘green’ trim A3 model later this month, specifically designed to escape the London congestion charge.
Available in three-door and five-door variants, the new A3 1.9 TDI is priced from £16,660 OTR and will fall under the proposed 120g/km CO2 limit, which permits exemption from the congestion charge.

The new A3 emits 119g/km of CO2
Audi said the measures taken to minimise emissions in the A3 would also be employed in the creation of more efficient versions of other models in the “near future”.
The new A3 delivers 62.7 mpg-plus fuel economy with CO2 output of 119g/km and has a top speed of 120mph.


DATED: 21.08.07

FEED: MT

The National Franchised Dealers Association has warned car dealers they are missing out on a major revenue stream if they neglect the sales of finance products.
Some car dealers are giving up on finance sales, blaming a perceived unpopularity with consumers, according to the NFDA.

Louise Wallis, head of business development, said: “Dealers believe that in-showroom finance is perceived by consumers as expensive.

DATED: 21.08.07

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Pendragon, the UK’s largest dealer group, is not performing as strongly in a tough market as key rivals such as Lookers and Inchcape, according to a motor industry analyst.
Mike Allen, an analyst from stockbroker Panmure Gordon, claimed Pendragon was lagging behind its competitors in both the new and used sectors and also “has issues with staff leaving”.

“In financial terms Lookers has a better used car business,” said Allen.

DATED: 21.08.07

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New Volvo C30 Efficiency model with sub-120g/km CO2 emissions
New diesel automatic transmission with Powershift technology As well as a focus on biofuels and hybrid technology, Volvo is also making energy-efficiency improvements to conventional drive trains. This work has led to the development of two new innovations which will be introduced during 2008 - a low CO2 emitting Volvo C30 and a new diesel Powershift transmission for the Volvo C30, S40 and V50.

DATED: 21.08.07

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A raft of measures to 'get Britain moving' have been proposed by the Economic Competitiveness Policy Group established by Conservative Party leader David Cameron. The measures, contained in the group's report 'Freeing Britain to Compete', will now be discussed by the Shadow Cabinet to decide which recommendations form part of the Conservative manifesto. The group was chaired by former Conservative cabinet minister John Redwood and the chief executive of Next fashion group Simon Wolfson.

DATED: 21.08.07

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Car dealers are increasingly moving to boost business by taking control of their finance operations.
With margins under pressure in the new and used car sales markets some dealers have opted to shift focus into the fleet broker sector rather than outsourcing the work to third parties.Fish Brothers, which has 12 franchises in the Swindon area, is one group to have taken contract hire and leasing arrangements in house. It set up a new division, FB Contracts, in late 2006, which then entered into a partnership with Network Vehicles, part of the LeasePlan Group.

Boosting the bottom line
Simon Bradbury, sales manager of FB Contracts, said: “We realised the opportunity was there. If brokers could do it by themselves what was stopping us from setting up our own finance arm and acting as a broker directly to our customers?”Bradbury said the wealth of contacts built up through the group's dealerships had helped in establishing the broker business.“A key advantage to dealers entering this market is the resources they have already built up,” he said.


DATED: 20.08.07

FEED: MT

Showroom finance remains a popular means of purchasing a car despite the rise in alternative funding methods.
Almost a quarter of car buyers claim they would be most likely to opt for a finance package from the retailer at the point of sale, compared with just 15 per cent who would choose a personal loan from a high street bank.

Dealer finance remains popular
According to a study by car financing company GMAC, car dealers appear to be holding their own in the finance market as only 7 per cent of consumers would consider borrowing from an online loan provider.


DATED: 20.08.07

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New car sales across Europe increased by 5.6 per cent year-on-year in July to 1.31 million.
The healthy rise meant that over the first seven months of the year sales edged marginally ahead of the same period in 2006 to 9.68m.

According to Jato, of the big five markets France posted the most spectacular rise last month – up 21 per cent to 183,340 units.

DATED: 20.08.07

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Nissan’s luxury brand Infiniti has announced the first details of its European product roll-out that will begin with the new EX next year.
The EX, unveiled earlier this month, will form part of a four model premium range that will be launched alongside the G Saloon, G Coupe and a successor to Infiniti's FX.

The Infiniti EX will kick start the launch

The car will first be on display in Europe at the 2008 Geneva Motor show.

DATED: 19.08.07

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Honda is to pour another £13.1 million into its dealer Business to Business Programme over the next five years, after achieving unprecedented success in the first two years of the scheme.
The brand’s Dealer Fleet Programme was started in 2005 with 20 franchises, and this figure was planned to expand to 50 within two years. In fact 90 dealers have now signed up to the scheme.

The Honda initiative, pitched as a long-term investment in local business sales, offers the dealer recruitment support, a comprehensive eight-day training programme for local business staff, and salary support in the first three years while they establish their customer base.

DATED: 19.08.07

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Hundreds of owners of £225,000 Bentleys, including a host of celebrities including footballer David Beckham, has been urged to take their cars into their dealer for a check-up after the carmaker admitted the wheels had not been screwed on properly. The luxury car manufacturer ordered the worldwide recall on its Azure and Arnage R, T and RL models after customers complained their plush new cars were rattling at speed. The cars affected are the Azure and the Arnage R, T and RL produced between February 2005 and August last year. It is believed that more than 500 cars worldwide are affected. Owners should take their vehicles to dealerships to have new bolts fitted, free of charge. There have been no incidents of wheels falling off.

DATED: 19.08.07

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Aston Martin will unveil the most eagerly anticipated car of the year when the new DBS is revealed at the Pebble Beach Concours d'Elegance on August 16th, where the company takes a starring role as the featured marque. Aston Martin Chief Executive Officer, Dr Ulrich Bez, said: "The DBS is the ultimate expression of Aston Martin's engineering and technical ability. It offers pure performance without compromise. "The DBS delivers the complete driving experience and bridges the gap between our road and track cars - the DB9 and DBR9."

DATED: 19.08.07

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Thirteen motorists have been summonsed to appear in court as part of a police campaign to crackdown on illegally-tinted car windows in Stoke-on-Trent. Officers said they fear fatal accidents have been caused as drivers have been unable to see properly in the dark because of the tinted windows. The law states any vehicle windows must allow at least 70% of light through. Police have been testing windows with light monitoring equipment at the city's Festival Park.

DATED: 19.08.07

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