F&I Management & Training

According to the motoring organisation's latest fuel price report diesel now costs 123.07p a litre, compared to the year high of 123.08 in May

Over the past decade the popularity of diesel powered cars, which offer 15-20 per cent greater fuel efficiency than petrol models, has grown.

Approximately 40 per cent of cars on the road and new models sold have diesel engines.

Diesel is also crucial for the haulage industry and dearer fuel will eventually result in shop prices rising as well.

"Fuel accounts for a third of the cost of running a truck, and it's not as if commercial vehicle operators have the option of using public transport, so increased prices become a real problem for businesses struggling out of dire trading conditions," said a spokesman for the Freight Transport Association.

"With pretty much everything on our shelves having made its journey at one stage or another on a lorry, the impact of higher oil prices and successive, above inflation tax hikes could make it more difficult for the logistics sector to deliver Christmas this year."

However the comparative strength of sterling has provided some respite for motorists by preventing the cost of petrol reaching a new all-time high.

The average price is now 119.08 pence a litre. Had the pound been as weak as it was in May, then drivers would have been paying more than 122 pence a litre - exceeding the current record of 121.61 pence.

Nevertheless petrol is now 10.44 pence a litre more than it was a year ago, meaning that drivers are now paying an extra £5.22 to fill a tank than in November last year.

Edmund King, the AA's president, however. feared that motorists could be hit with dearer fuel in the near future.

"Knife-edge, dread and uncertainty are the words describing the state of UK fuel prices at present," he said.

"The oil price hit a two-year high last week, spurred on by market speculators, before falling back into the $75-$85 range that has set the tone for most of this year. The wholesale petrol price touched $800 a tonne again last week before dipping down once more."

"The stronger pound has shielded drivers and consumers from the worst of these market changes. However, the fallout from next January's increase in fuel duty and higher VAT doesn't bode well for inflation figures and sterling, if this week's market reaction is anything to go by."

"At street level, a steady increase in pump prices, impending higher domestic energy bills, and even reduced reward points for supermarket fuel purchases, add to the sense of dread for the coming months."

The US car giant General Motors (GM) says its offer of shares to the public could raise $18bn (£11.3bn), $5bn more than first hoped.

Investor interest in the sale means demand has rocketed and increased the price the company can charge.

The company is currently more than 60% owned by the US government which is keen to return it to the market.

It plans to sell 365 million common shares for up to 18% more than first estimated at a price of $33 each.

It will also now offer $4bn in preferred stock - four times the original value planned.

Preferred stock carries different rights and will help to pay off the company's pension debt - one of the concerns of potential investors in the share sale.

According to the Reuters news agency, a price for the common stock of $33 per share would give GM a market value of about $63bn - close to the $66bn value that GM needs in order for US taxpayers to break even, based on the US Treasury's remaining common stock holding and a share price projection by the Treasury's special inspector general.

More independent used car dealers are starting to view warranties as a potential profit opportunity, says RAC Warranty.

The company says that many are starting to introduce structured warranty sales programmes to help them sell longer and more comprehensive cover with used cars.

Ian Simpson, sales and marketing director at RAC Warranty, explained: "Independents are learning that customers are very receptive to the idea of increasing warranty cover at a time when many people remain worried about their jobs and money in general.

"Warranties are a way for these used car buyers to safeguard against the possibility of future unexpected motoring bills - and also, of course, for dealers to increase the profitability of each used car sale.

"We are starting to see more and more independents taking a structured approach to the whole business of warranties. Rather than viewing a standard three month warranty as a cost that needs to be added to a used car before it can be sold, they increasingly perceive it as a starting point for potential additional profits, ensuring that it becomes introduced into the sales process in a disciplined fashion and that results are tracked carefully."

Simpson added that independent garages that had aftersales facilities were also starting to recognise the role that warranties had to play in retaining future aftersales business and repeat car purchasing.

He said: "Independents are starting to think along the same lines as franchise dealers - that capturing future warranty claims is a good way to ensure that your workshops are busy in the future and that keeping the customer coming back builds a relationship that could lead to a repeat used car sale in the future.

"It is all about moving away from a mindset where a used car sale is a single profit opportunity to one where it is the starting point of a long term customer relationship."

Now Motor Retailing has expanded its representation with Vauxhall within the M25 with the acquisition of West End Vauxhall in Staples Corner.

The business was bought from Lang West End for an undisclosed fee and brings Now’s representation up to five sites.

The site is on London’s busy North Circular and is a newly built brand centre. Lang had occupied the site for 19 years.

“We’ve always wanted to grow within the M25 and in the current market this was an ideal opportunity,” said Jon Taylor, talking to Motor Trader.

Taylor said the site is being rebranded as Now and most of the staff are expected to be retained.

“There’s room to grow the business and the showroom’s only five years old,” he said.

Now formed in 2006 as a joint venture with Vauxhall to acquire the assets of the Lance Owen Group. The group employs around 160 staff and has a turnover of £32m

DATED: 18.11.10

FEED: MT

Automotive new-entrant Fisker is hoping to convince UK dealers of its potential as a greener alternative in the luxury and sports car markets.

The business was launched in America in 2007 but hasn’t yet put a car into production. At the Paris Motor Show it revealed its Karma hybrid-engined executive saloon, which will be built from March by contract manufacturer Valmet in Finland. Fisker says five more models will follow within five years.

Vic Doolan, its retail development director, told AM Fisker wants five or six dealerships in the UK. He said it is “very close to concluding arrangements in the UK” and would announce these by the end of the year. AM understands the partners will all be experienced in the prestige car market.

The first right-hand drive Fiskers will be developed from late 2012. “We believe the British market could be a great opportunity for us,” added Doolan, a former BMW and Volvo US executive. Fisker wants to appeal to premium car customers seeking individuality. It expects the emissions-based company car tax structure to make its plug-in hybrids even more attractive.

Automotive new-entrant Fisker is hoping to convince UK dealers of its potential as a greener alternative in the luxury and sports car markets.

The business was launched in America in 2007 but hasn’t yet put a car into production. At the Paris Motor Show it revealed its Karma hybrid-engined executive saloon, which will be built from March by contract manufacturer Valmet in Finland. Fisker says five more models will follow within five years.

Vic Doolan, its retail development director, told AM Fisker wants five or six dealerships in the UK. He said it is “very close to concluding arrangements in the UK” and would announce these by the end of the year. AM understands the partners will all be experienced in the prestige car market.

The first right-hand drive Fiskers will be developed from late 2012. “We believe the British market could be a great opportunity for us,” added Doolan, a former BMW and Volvo US executive. Fisker wants to appeal to premium car customers seeking individuality. It expects the emissions-based company car tax structure to make its plug-in hybrids even more attractive.

DATED: 16.11.10

FEED: AM

Car dealers enjoyed a good September, as figures from the Finance & Leasing Association showed an increase in new and used car finance compared to September last year. The number of new cars sold on finance to consumers was up by 5% and the number of used cars by 6%, despite a fall of almost 19% in the total number of private new car sales in September.1

And, consequently, the percentage of new cars sold to consumers on dealer finance over the last 12 months rose by more than two percentage points, from 47.5% in August to 49.6% in September, showing that dealer finance remains a popular choice for consumers.

However, despite the welcome growth in the consumer market, business usage of financing for cars dropped by 17% for new cars, and by 4% for used cars in September.

Commenting on September’s motor finance figures, Paul Harrison, Head of Motor Finance, said:

"The rise in the use of motor finance is great news for dealers, coming as it does in such an uncertain and volatile economic climate. Over the year we have seen ups and downs in the number of people using dealer finance for both new and used cars, so it is encouraging to see a strong performance in the important month of September.

"But we still have some concern about the business cars sector, where new loans have fallen. Businesses are still cautious about investment and this is likely to continue while the economic effects of last month's Comprehensive Spending Review remain unclear."

Glass's has launched a dedicated mobile website giving dealers access to a full range of tools to check and value vehicles while they are away from their desks. GlassNet Unlimited Mobile, which goes live this week, is an extension of the highly successful GlassNet Unlimited system.

Vik Barodia, Glass's Dealer Sector Director, said: "GlassNet Unlimited Mobile marks a real step forward in bringing the latest technology to vehicle retailing, and puts the full power of Glass's valuation services in the palm of dealers' hands.

"Digital mobile technology is revolutionising the way dealers buy and sell cars. Mobile web use has tripled in the past 12 months and we expect to see 50 per cent month-on-month growth in dealers accessing our new service. The application will save time and money, helping to maximise profitability."

Dealers using the dedicated mobile website will benefit from features including an instant VRM lookup facility and repair costs calculated using Glass's comprehensive parts and labour database. Unlike other mobile valuations platforms, dealers on GlassNet Unlimited will not incur any additional costs for carrying out a valuation using GlassNet Unlimited Mobile.

Glass's is also offering the gift of a market-leading touchscreen tablet to any dealer who places an order for the GlassNet Unlimited Mobile package including Glass's Guide from launch until 31st December 2010, whilst stocks last.

In customer trials the feedback on the new service has been outstanding. Adam Richardson, director at J Richardson & Sons Ltd commented: "We are very impressed with the ease of access and the visibility of the straightforward data brought up instantly by each search. Thanks to GlassNet Unlimited Mobile, wherever my sales manager is, he only needs his mobile phone with him to carry out accurate valuations."

The service features a thorough valuations process plus the ability to input data regarding the mileage, date of first registration and VIN. Dealers can check the vehicle's technical data, making adjustments for features such as optional equipment, colour and MOT due date.

Dealer sales of new and used car finance increased year on year in September, according to the latest figures from the Finance & Leasing Association.

The number of new cars sold on finance to retail customers increased by 5 per cent and the number of used cars by 6 per cent, despite a fall of almost 19 per cent in the total number of private new car sales in September.

The FLA said the percentage of new cars sold to consumers on dealer finance over the last 12 months rose from 47.5 per cent in August to 49.6 per cent in September.

Dealer finance for business cars dropped in the month by 17 per cent for new cars and by 4 per cent for used cars.

“The rise in the use of motor finance is great news for dealers, coming as it does in such an uncertain and volatile economic climate,” said Paul Harrison, the FLA’s head of motor finance.

“Over the year we have seen ups and downs in the number of people using dealer finance for both new and used cars, so it is encouraging to see a strong performance in the important month of September.

“But we still have some concern about the business cars sector, where new loans have fallen. Businesses are still cautious about investment and this is likely to continue while the economic effects of last month’s Comprehensive Spending Review remain unclear.”

DATED: 15.11.10

FEED: MT