umesh

Just read this article , not sure if everyone has see it by Glass's Guide -AM interesting Reading , but what do you think? By Dr Richard Parkin It’s a competitive world in the used car sector, but despite the more positive news that the industry is predicted to grow this year, many dealers are still too focused on used car margins and aren’t paying enough attention to stock turn. Richard Parkin, Glass's Dr Richard Parkin is director of valuations & analysis at Glass’s, where he coordinates the editorial and analysis team. Prior to joining Glass’s in 2012, he spent six years as a strategy consultant at Ernst & Young, with a focus on the automotive industry. To maximise profitability, dealers should be focused on the profit made per forecourt space each week rather than on the margin made on a vehicle. Glass’s studied a basket of vehicles over the course of 2013, monitoring the trade and retail prices in each month for a three-year-old/36,000-mile example, along with the average selling days. Astonishingly, the typical difference between trade and retail prices in any given month varied by as much as 25%, or about £500 for a typical B segment car. However, once the average time elapsed between trade purchase and retail sale was allowed for, the actual achieved gross margin showed a more consistent picture. Such findings reinforce our view that trade and retail guide prices need to be derived from independently moving sources of data, otherwise this true behaviour is not captured. Why used car margins do not give dealers the full picture The chart, below, shows the trend in both the actual achieved gross margin and the profit per forecourt space per week for typical B and D segment cars. Glass's stock turn graph Notably, despite a broadly flat gross margin, the financial return on the B segment car to the dealer appears to have declined by about 40% over the course of 2013, from a rate of over £500 to just under £300 per forecourt space per week for a Ford Fiesta Zetec petrol as a consequence of a steady lengthening in the time needed to secure a buyer for such a car, most likely caused by the plethora of great new car deals for private buyers in that segment. By contrast and despite greater volatility, a typical D segment vehicle did not show the same level of decline, with a gross margin potential for a Vauxhall Insignia Exclusiv remaining around £600-£700 per week throughout 2013. However, “hidden discounting†through retail PCP deals has been less aggressive in this segment. It appears that dealers are unaware that the level of profits from certain vehicle segments has been in decline, and many have not adapted. This really brings into question what a dealer should be stocking; however, it will be necessary to stay ahead of the game as once enough dealers make the connection, prices and selling days will become less attractive as retail supply increases and consumer demand shifts elsewhere. Without the right data and systems, there is a real chance that the less informed dealer will be left with only the weaker opportunities.

Anyone got this? who could it be ? any thoughts? We are conducting a confidential and anonymous survey of people who use classified online car advertising sites. We're asking for a 'no holds barred' response to a questionnaire which will take just a minute to complete. Just click here: https://www.research.net/s.aspx?sm=OW2otRNoz5UKXvSM8HfwmA_3d_3d If we hear what you think - confidentially - we think we can improve services to you - cost, response, service levels. Just click here https://www.research.net/s.aspx?sm=OW2otRNoz5UKXvSM8HfwmA_3d_3d This survey is blind. You don't know what company is asking for the information because we want your honest and frank opinion. Once you complete the survey, we won't know who completed it. That means you can say what you really feel about online car advertising sites. So please, click here and do the survey online. https://www.research.net/s.aspx?sm=OW2otRNoz5UKXvSM8HfwmA_3d_3d Thank you! Please note: If you do not wish to receive further emails from us, please click the link below, and you will be automatically removed from our mailing list. https://www.research.net/optout.aspx?sm=OW2otRNoz5UKXvSM8HfwmA_3d_3d

I'm sure many have read this rich list - Sunday times? Arnold_Clark_250 Motor traders enjoyed a strong showing in the 2013 Sunday Times Rich List, the annual review of personal fortunes in the UK. This year’s survey identified 28 multi millionaires from the car sales and wholesaling among the top 1,000 richest people in Britain. Once again Sir Arnold Clark (pictured) was the highest rated dealer group boss at number 172 (2012: 191), based on a family fortune of £508m (2012: £467m). Profits at Arnold Clark Automobiles, rated number three in the Motor Trader Top 200, saw profits rise from £50.5m to £51.7m. Next in the listing at number 209 (2012: 219) was Lord Edmiston, founder and owner of IM Group, the UK distributor of Subaru, Isuzu and Great Wall. The company also operates a property business. Edmiston’s fortune was estimated at £440m (2012: £400m). The Sunday Times also acknowledged him as one of the country’s top 16 charity donors with recent donations estimated at £25.6m. Jack Tordoff, chairman of Bradford-based JCT600, and his family were rated at number 261 (2012: 279) on a fortune of £330m (2012: £290m). The group is rated 13 in the Motor Trader Top 200. Sir Peter Vardy and his family were rated at number 504 (2012: 482) based on a fortune of £155m (2012: £155m). After selling the Reg Vardy Group to Pendragon in 2006 Sir Peter helped launch the Scotland-based Peter Vardy Group, rated 43 in the Motor Trader Top 200. The report estimated the Vardy family donated £2.5m to charity last year. Elsewhere Tony Bramall, whose dealer group businesses have included CD Bramall and Bramall and Jones was rated at 417 (2012: 527) based on a fortune of £192m (2012: £144m). The Sunday Times estimated he holds a £92m stake in Lookers. Sukhpal Singh Ahluwalia, the founder of Euro Car Parts, was rated at 277 (2012: 339) on a personal fortune of £300m (£225m). Ahluwalia sold the business in 2011 to the Chicago based LKQ Corporation for £225m but remains as chairman and managing director. While F1 supremo Bernie Ecclestone, who started his career as a used car retailer, saw his fortune remain at £2.5bn making him the 26th richest person in the UK. - I'd like to know why none of my twitter friends are not on here ! Come on guys - or do we need to stop tweeting and get selling ! Buy for now

We do get them all - don't we ! think Gavin you're right some of them don't have the social skills so communicate and that's where the message comes over wrong ! we try to defend the attack - its in our nature ! The strange thing with saying its not for me the sellers sometime don't like it to their face ! Had it this week where a company made an appointment for the sales rep to call in and see me , the information give to me was not what the salesman was told - he was selling me what he thought I wanted - I told him I'd told the girl I 'm not in the market but she obviously didn't care - just making appointments ! the salesman was most put out when I kept telling him sorry but I do not want what you're selling ! 'your' appointment rep mislead me and YOU!

Jim & the boys put on an awesome routine ! YOU'VE GOT TO IT GUYS ....... I'm just wondering if to sign them up ! 1D Step aside ! its time for No-D

I never knew this and thought it was worth sharing ..... Anyone noticed your data being used up quickly lately? Well it is because facebook has changed your settings and as videos now auto play in your feed...that's huge data and costs you £. On iPhone, go into your phone settings, go to FB icon, click on that, then on settings and select "auto play on wifi only". On desktop go to the little triangle top right of your FB page, go to settings, down the bottom is videos, click on videos and move the slider to off On android go into ap settings and do the same On Samsung while in FB press the left button next to home key on the phone then press settings and it comes up with the auto play option.

Stolen parts being sold : A Few years ago I went to an Audi dealer to pick a car up and saw the top part of the parking area all cordoned off with crime scene tape ! I asked the sales manger looks very serious what happened ! the place has security cameras / night watchman / heavy flood lights ..but these cleaver thieves knew exactly what to do - disarm the alarm on the 'Brand New Audi' all the front end Bumper/ bonnet , front wings carefully taken off - can you imagine the shock next morning! 2nd twist to this a few miles away ..... another Audi dealer - same model car - same colour - yeap rear bumper and back lights/ boot gone ! now that's very cleaver 'parts sourcing' down to the colour match too !!

I'm sure most of you heard this on the news yesterday about self employed earning less than employed people? Most on here ( I guess) are S/E - What are your thoughts on the survey? Nearly one in seven Britons are now self-employed and earn 40% less than a typical employee, a major new report has found. The Resolution Foundation's new study sheds new light on the state of job security in Britain as the number of self-employed has risen by 650,000 to 4.5 million since the recession started five years ago, which represents 15% of the active workforce. The recession has hit self-employed Britons especially hard, as their average weekly income is 20% lower than it was in 2008, with a typical self-employed worker now earning 40% less than a typical employee. An Ipsos-Mori survey commissioned by the Foundation as a part of the report found that 27% of those who became self-employed in the past five years to do so because they had no other choice, an increase from 10% five years ago. The Resolution Foundation report warns: “The analysis paints a worrying picture of the security and vulnerability of self-employed people on both a short and long term horizon. "Only 30 per cent of self-employed people are contributing to a pension, compared to 51 per cent of employees. Our survey also indicates that a minority of self-employed people are experiencing difficulties getting mortgages, tenancies and accessing personal credit and loans, specifically due to being self-employed." Gavin Kelly, chief executive of the Resolution Foundation, said: “Self-employment is often a highly precarious existence which isn’t that well supported by public policy. High levels of self-employment seem likely to be here to stay and policy-makers have some catching up to do.†“The growth in self-employment over recent years has been astonishing – but the reasons for it are complex. Some of it can be explained by a workforce that is getting older and putting off retirement for longer, some of it may be down to our growing appetite for being our own boss, and clearly much of it is due to weakness in the jobs market meaning there are fewer other options.†Labour’s shadow business Secretary Chuka Umunna said: “This report shows that the cost of living crisis facing the self employed is often more acute than for others. “That is why, unlike this Tory led Government, we will reduce the cost of doing business for the self employed by reducing the average small business’ energy bill by £5,000 with Labour’s energy price freeze, by improving access to finance with a British Investment Bank and regional banks, and by setting up a UK Small Business Administration to champion their interests at the heart of Government.†A Department for Work and Pensions spokesman said: "Of the 691,000 extra people who have found work over the last year nearly three fifths are employees of firms. But small businesses and entrepreneurs are the heartbeat of the continuing success of the country and as the economy grows, these self-starters may well become the employers of the future. “The truth is the number of people in work has increased by 1.35 million since 2010 - over a million of these jobs are full-time. We now have the highest employment rate for five years and record numbers of people are in work.†Does this apply to the motor trade ? Or is it some of the 'cottage industry ' distorting the stats? would be interested to hear your thoughts?

Over the years I've been offered the odd bike or two! I don't really understand the market and as usual the customer always wants retail price! I've always tried to place the bike to a Bike dealer - but failed pretty much every time! Not to say I haven't sold the customer a car - they've decided the offer was too low bought the car and tried to sell the bike them selves ! Last time it was a very special American import that I placed on ATM - Got couple of ( I thought) sensible bids but customer was expecting retail ..... He's still got the bike as he's not willing to as he says " Give it away " !!

I've read this article, and wondered how many 'dealers' check every cars history with the servicing dealer stamped in the book? A car dealer has been fined £5,000 for selling a car with a false service history. Presley Ogbondah, director of MPH Cars Ltd in Billet Lane, Hornchurch, failed to check the history of a car he sold, which turned out to be falsified. After the vehicle had been purchased, its new owner noticed loud knocking noises coming from the engine. Following some attempts to have the vehicle repaired, it was discovered that a replacement engine was needed at considerable cost. The owner contacted the main dealership and discovered the service history supplied with the vehicle was false and the car had not been serviced by them at all. Although Ogbondah had not falsified the history himself, he pleaded guilty to engaging in a commercial practice which was a misleading action contrary to the Consumer Protection from Unfair Trading Regulations. Appearing at Snaresbrook Crown Court on April 7, he was fined £1,000 and ordered to pay £1,000 costs, as well as £3,000 compensation to the consumer. (Source: Romford Recorder) Any thoughts on this ?

Bacon Sarnie !! What about me Don't like bacon !! Guess just a black coffee then ..... !

Will, I'm sure your web developer can do this quite easily ! and I think motors do offer this facility too. Not as hard as you may think? just think what are you going to do with all that time saved !

Posting Pictures / information/ Registration numbers on Social Media. I’ve been thinking about this for a quite a while and the recent story about Paul Weller made me wonder even more. I’m always cautious about what information I post on social media, I always ask customers if they are OK with their picture being posted on FB / Twitter when they’ve bought a car from me. It’s all too easy to snap away without thinking and post pictures /information which could cause an issue for some one. The Paul Weller situation is a bit different as it’s his children, but what if you spotted a car with an unusual registration number , snapped away posted it on twitter , and the car shouldn’t have been there for whatever reason ??? I nearly did that say a car with ‘GOK’ ( Don’t think it was Gok Wan !) But was just about to take a picture and thought ‘what if’ ... I didn’t bother! We all do these things on spur of the moment and its for fun , but in reality are we asking for trouble ? lawsuit ? any thoughts ?

Not sure if everyone has seen this ? the adverts will now show CAT C & D , But as we all know if the 'person- dealer' doesn't use registration number they will still be able to 'by pass' the system ! but at least they're listening ... https://dealerportal.autotrader.co.uk/features/cat-c-d-changes1

This has just been posted on #TCDUK : http://twittercardealers.ning.com/ But I though just in case some of you are not on there its worth re-posting on here. Original post by Joe o'kane. Thanks Joe this has been doing the rounds for awhile but always a reminder of how vulnerable we can all get , especially with new /untrained/ gullible sales staff wanting 'that deal' ! "Below is a notification I received this morning from usedcarsni.com - this has happened in Northern Ireland, but I suppose it could happen anywhere ...... Dear all, Please be aware of a credit card fraud operation that is going on at the moment, targeting local car dealers. it's a very serious scam because the whole thing sounds plausible enough and they have already been successful in stealing some cars in Northern Ireland. The cases we have been told about were 'customers' phoning from Birmingham and surrounding area, looking to purchase vehicles via credit cards. The payments cleared via card terminal but were flagged up as fraudulent later by the real card holders. Apparently it often takes 2 or 3 weeks for this to happen and the money is still charged back, resulting in a huge loss to the car dealer. The fraudsters provided a copy of a fraudulent driving licence and insisted on a quick vehicle transfer to the mainland. Below are some mobiles, names and email addresses already used within this scam. Note : they will very likely be changing the names and numbers often, so this is not at all an exhaustive list. Adam Joe - 07466596667, 07440470664, email details – nonstop121@live.com Hashi Musse - 07835203811, 07562695129, 07704375782, email details – du07@hotmail.com If you have had this happen to you or have had this attempted and have any names, addresses, phone numbers, drivers licences or any details, please contact the investigating officer below. The PSNI are trying to find as much information as possible to help the police in GB to find the vehicles that have been stolen. Investigating officer to contact in PSNI is Constable Roger Williams &n dash; 07584282317 or emailroger.williams@psni.pnn.police "

Now if you could tell me the 'hottest' seller next month I'd be even more impressed ( only so that I an go out and buy a field full! ) always interesting to see - BMW 3 SERIES & Golf's always up there !

it is weird i think sometimes 'us' motortrade get massive hangups on 'base' spec cars ... there are so many people who want , wait for it 'manual wiindows' , cloth seats , no alloys ...... they just want value ! and to be honest I've had a few 'low spec cars and sold them reasonable quick ' because there buyers were wanting 'no spec' #Bizarre !! Goes with colours too! Bought a BMW 320d coupe last week or so , all the guys next door laughing at me, its GREEN !! Who's going to buy that ha, ha ha - 1st ad - customers BUYS it because its 'different' whos laughing now

just read this on another platform , thought it may be of interest to all on here just in case anyone else has the same situation. Car Sales Vs The Law. Just a heads up guy's we lost a court case 2 weeks ago. A customer purchased a car & within a week we had to replace the clutch. After doing the work the customer did not pick the car up as he wanted his money back, we thought this was unfair as we had repaired the fault. The courts found in his favour, the reason given was we can resell the car and the customer was sold a car that developed a fault early in his ownership! So what do we do next time not even bother doing a repair? Crazy!

Thanks Kevin again for acting so promptly to this situation. I hope by bringing this to your attention and your response, it may stop them doing this to other fellow dealers. After all the system can only work if WE all play by the rules, once the rules start to get broken the system will lose its integrity.

James, I know Kevin is very passionate and to be honest he has over the years got involved with the odd one or two dealers who've not played the game. At the end of the day not much Kevin can do, some dealers simply do not understand the frustration of what they do or the consequences of their actions. In the above situation - I've lost a sale , wasted valuable time and effort ( whats that's worth? £££ ) luckily the driver managed to get diverted in time and has not 'billed' me for his wasted time. This time I've not spoken to Kevin- .....

Interesting question not sure if anyone has done the sums or ‘invested’ in LED Lights. Every 4/5 years I replace all my showroom lights (tubes) last year I thought I’d check out the world of ‘LED’ seems the way forward. Found a great company via twitter – a fellow #SBS Winner who to be fair have been very helpful and had some different demos’ PLUS they’ve just designed a new tube that will fit my lighting system. The question is to replace with normal tubes around £500+vat , to go LED £2500+vat savings of allegedly 65.7% compared to normal tubes? Are these figures realistic? Does anyone have any personal experience? And you have to remember , although they say ‘life’ for led tubes the guarantee is the same as normal tubes – 12 Months ! Would love your thoughts ?

Very , very annoyed with a fellow motor dealer on ATM this morning! BIG group – 308 Favourites (IF That means anything these days! ) Typically they always put ‘offers over’ never a price, cars are physical – never get through on the phone to give a price and buy so have to simply email a bid and hope for the best. Very annoying at times as a conversation would be easier and you know if you’ve bought it or not. I’ve never had a reply back even when I’ve asked a couple of days later if I own or not! Last week I bid on a Passat and on the email I put ‘Offer is valid until close of business 17th March’ yesterday afternoon I got an email ‘ is it too late’ I replied No , is the car down to me? “Yes – here are the contact details of the branch where the car is†I emailed both (Group seller & sales manager at branch) so say I have a driver who can collect this morning, please email invoice, bank details etc. This morning no emails or faxes ! rang the dealer left message with receptionist to say PLEASE – can someone organise invoice etc as I don’t want the driver hanging around. Just got a call to say “ the group buyer had jumped the gun – they got a lot more than I’d offered –sorry†!!! Apparently they had a conversation last night /late pm about it ? so why not make a call or email me then – WHY wait until I’m chasing them ? The driver could have been there this morning at 8.00am waiting as I have a confirmation it’s down to me! How unprofessional ? and as for the 308 Favourites ..........

Thanks guys I did wonder about Dragon 2000 ! may have to give them a call!

Just wondering what accounts packages other smaller dealers are using? Have been using Pegasus but its needs to be changed and not so helpful people since local supplier closed. is there a 'cloud based' one out there? thanks umesh

Philip , wait and see but here's a clue .. U-M-E-S-H