This is an article I wrote which appears on the Car Dealer magazine website (www.cardealermagazine.co.uk).
WHENEVER I am introduced to someone for the first time, I avoid where possible the subject of my occupation…
It is not because I am embarrassed or ashamed of a job I love, it is because more often than not I get told a horror story about a bad car retailing experience that person has suffered.
‘I went into xxx showroom on a Saturday afternoon in a pair of jeans and tee shirt, the salesman looked me up and down and decided I could not afford it so I walked out in disgust,’ or similar is a sentiment most of you would have heard in your careers.
‘I would have bought the car but they would only give me half of what my part exchange is really worth,’ is another well worn gripe.
In all cases I feel duty bound to defend my car selling brothers and sisters with sweeping statements like ‘if you didn’t make an appointment on a Saturday they were probably busy’ or ‘I am sure they would have done the deal if they could’.
However, at the weekend, my best friend asked me to buy a used car on his behalf. He has a specific need for a large German estate and likes to buy with the confidence of a manufacturer backed used car warranty. I located two examples on the manufacturer website and thus moved from gamekeeper to game.
The first choice car had been sold, the salesman took my number in the event that the buyer shed his skin so it was on to number two.
The dealer who owned the second car claim to be a ‘vibrant company with a fresh approach’. I called and asked to be connected to a used car salesman. ‘One moment,’ came the curt reply and that was to be it. The phone rang and rang to the point I had to hang up. I called an hour later with the same outcome.
Undeterred I left an enquiry for the specific car on the manufacturer website. I know what some of these ‘hot’ leads are like. You get everything from brochure collectors, 10 year olds doing their homework and in one extreme case that I experienced, an inmate of the local prison planning which car to buy on his release two years hence.
With this in mind I left a mobile number and a little message – ‘please can comeone contact me urgently about this car’.
Three days have passed and I am still without a call. I feel like Cheryl Cole might if she registered on a dating website with an artistic library photo and the phrase ‘liberal attitude to non committal sex’ only for her to get no interest.
I urge you all to think about your most basic of processes. Can a receptionist take details? What happens if you have a temporary receptionist? Who handles the portal for your web enquiries? How are they distributed? These are hardly challenges to test the boffins of Nasa.
Oh, and for the record, I called on a Saturday and I was wearing jeans…..
Saturday, 17 July 2010
Friday, 12 March 2010
Scrappage - Papering over the cracks - Part II
Jerry Maguire has to be one of my favourite films of all time. The context is sport which I love, I am not afraid to admit to a man-crush on Tom Cruise and I have huge empathy for the business and human themes which are central to the plot.
'Less is more' should have been the mantra for the motor trade for the last twenty years but sadly corporate big wigs getting fat on the bonus culture have meant a chronic issue of over production.
Unfortunately for the people of motoring towns like Birmingham, Antwerp, Trollhatten and Luton (not to mention Detroit) this issue is now being addressed in a more violent way than anyone could have predicted with job culls in the thousands.
The glutenous nature of the business then manifests itself in retailers. Targets, stretch targets and ad-hoc incentives mean that the primary concern for any dealer is volume. Forget profit retention, forget customer service and quality of business, it is all about the numbers.
Please do not think this is purely a car sales issue. Parts and hours are as important as the very things that start it all off.
As a result the need for space is huge. Bigger showrooms and used car display areas, bigger car parks, more parts storage and administration space and a number of workshop and valeting bays. This leviathon cannot be in any old location, it needs to be in a retail viable space and most importantly, the site needs to be corporate. Manufacturers (most of the time) dictate the architect, builders, design and even the type of chairs you sit on.
To pay for this you need some serious money. The most extreme case is West London Audi which is owned by the Sytner group, no change from £45 million pounds. The majority of retailers are debt funded so are precariously placed when times are hard (as in 2008).
So with scrappage about to end, the question being floated about the trade is 'what are you doing post scrappage?' as though the trade will cease to exist. For some weak dealers this maybe the case.
Like the macro-economic issue of over production, I believe there are many core micro-economic issues that overshadow many franchised dealers ability to perform profitably.
I will deal with these issues on an individual basis in later blog postings.
Friday, 12 February 2010
Autotrader - Where it's going wrong
I make no secret of my current disliking for the Trader Media Group. Here is the body of the e-mail I recently sent to their sales director:
Who are Autotrader to me?
I should add that I am referring to the digital side of the business, not the magazine.
From what you said to me earlier, I believe some of your colleagues may have lost sight of the pure essence of the company. Essentially you are the means in which I broadcast the cars I have to sell to the public at large. You own nothing more than a domain, some servers and what appears to be a patented search system.
This facility is available to me from a number of your competitors, eBay, motors, carmony, vcars, pistonheads to name but a few.
Where you have an advantage is your branding, your heritage and your technical superiority. This was important to me when I chose your company as a partner for me in 2007 when I started my business.
Where has it gone wrong?
The catalyst for much of my unhappiness comes from a lack of an Autotrader representative for a period of some eighteen months. There is no excuse for this, during this time I spent over £10k and had no relationship with which to speak of.
I cannot recall exactly but I would imagine there has been at least three rate rises within this period. Each time, a colleague of yours in your call centre would explain the new technology which was being launched to mitigate for each increase.
It is important to consider the car market at the time of these increases. We have seen dramatic falls in the number of new car sales which naturally have a knock on effect to the market as a whole. This is without considering the worsening wider economic climate.
Product Weaknesses
When I was asked to comment on the new artwork and beta concept a few months ago, I reported back saying something like 'looks like a five year old has done it'.
When it was launched, the functionality of the site was appalling. How a company like Autotrader can launch a site with so many technical flaws is incomprehensible.
The most concerning part for me was the reaction of the most important people in the whole process, the users. If you have not seen this then I would urge you to look at it:
http://tinyurl.com/y8wrf24
Then there is the new 'technology'.
Launching products like enhanced advert sizes, pay per click and promoted listings is hardly driving the market. I accept BETA is a great product in concept but as referred to earlier, that was not ready at launch.
I do not want to see advertisements for breast enlargement alongside my cars. As lovely as my friend's wife is to look at, I do not want to see any form of advertising next to mine. You are a classified car site, that is what I want to see, that is what customers want to see.
I notice from your latest dealer panel, you expect us to be amazed by telling us we can have a 'fully branded' display if a customer clicks into our car. That is exactly what we should have in the first place.
Cost
I have just used some of my saving in my package reduction by signing up to a 15 car agreement with motors.co.uk. The cost of this is £81.25 + VAT. Autotrader is approximately £500. I cannot confirm exactly as I am waiting for a new invoice.
I can list a car on eBay with nine pictures for 28 days for £12.99 including VAT. Some £150 for fifteen cars, if I sign up for an eBay motors package it would be less.
Can you honestly say you believe Autotrader is worth that much more?
One of my biggest issues is the lack of product flexibility. I cannot use itemised pay per clicks, I cannot chose not to have video, I have to sign up to a specific number of cars. If I had the ability to be more precise with my spend, I might spend more.
Motor dealers are notorious for spending money at advertising as a knee jerk reaction, this used to be done through an advert in the paper but dealers are not using this any more for obvious reasons. Here is a glaring business opportunity for Autotrader to take yet it fails to do so.
Lack of Proactivity
I had a phone call from Vodafone when my contract was close to the end saying that they had reviewed my deal and they had a new one which would save me a lot of money. I now spend a third of what I did but I am still with them. I could have spent a third with O2 or Orange but they kept me on board.
I have been overspending for six months or so, I am sure you have the technology to write reports which isolate dealers in my position but where is the outbound call?
I had been a subscriber to Autotrade Mail since we started in 2007 and was very happy with the product. I received a letter a month ago telling me the cost of the service was increasing by 25%. I asked Laura (sales manager) why, 'because we have not had a price rise for ten years' she replied, 'yes, but what about all the extra subscribers you have now, shrinking margins etc etc'......silence. Exactly the sort of blatant profiteering that we are seeing with Autotrader.
I finally met my local representative some two weeks ago. When I told her that I had heard you had a retention team that was cutting deals to existing customers, she told me she could do nothing about it and had to liase with someone else.
What is her function? As lovely as it is to see a nice girl with a pretty smile asking me what business is like, I am afraid I am too busy to indulge in meaningless chit chat. She said to me 'there is a brick wall up and I can't get over it' during her visit, 'that is because you don't have any ladders' I replied.
The irony of it all
What makes me laugh the most is the new CRM hat that everyone at Autotrader is wearing. You are telling me that I will get monthly visits and reviews and that essentially you want to cuddle me.
The current pricing and product actions do little to reassure me your long term goals include building customer relationships.
You now want to put prices up from March the 1st.
This is not a good start for the new regime......
Who are Autotrader to me?
I should add that I am referring to the digital side of the business, not the magazine.
From what you said to me earlier, I believe some of your colleagues may have lost sight of the pure essence of the company. Essentially you are the means in which I broadcast the cars I have to sell to the public at large. You own nothing more than a domain, some servers and what appears to be a patented search system.
This facility is available to me from a number of your competitors, eBay, motors, carmony, vcars, pistonheads to name but a few.
Where you have an advantage is your branding, your heritage and your technical superiority. This was important to me when I chose your company as a partner for me in 2007 when I started my business.
Where has it gone wrong?
The catalyst for much of my unhappiness comes from a lack of an Autotrader representative for a period of some eighteen months. There is no excuse for this, during this time I spent over £10k and had no relationship with which to speak of.
I cannot recall exactly but I would imagine there has been at least three rate rises within this period. Each time, a colleague of yours in your call centre would explain the new technology which was being launched to mitigate for each increase.
It is important to consider the car market at the time of these increases. We have seen dramatic falls in the number of new car sales which naturally have a knock on effect to the market as a whole. This is without considering the worsening wider economic climate.
Product Weaknesses
When I was asked to comment on the new artwork and beta concept a few months ago, I reported back saying something like 'looks like a five year old has done it'.
When it was launched, the functionality of the site was appalling. How a company like Autotrader can launch a site with so many technical flaws is incomprehensible.
The most concerning part for me was the reaction of the most important people in the whole process, the users. If you have not seen this then I would urge you to look at it:
http://tinyurl.com/y8wrf24
Then there is the new 'technology'.
Launching products like enhanced advert sizes, pay per click and promoted listings is hardly driving the market. I accept BETA is a great product in concept but as referred to earlier, that was not ready at launch.
I do not want to see advertisements for breast enlargement alongside my cars. As lovely as my friend's wife is to look at, I do not want to see any form of advertising next to mine. You are a classified car site, that is what I want to see, that is what customers want to see.
I notice from your latest dealer panel, you expect us to be amazed by telling us we can have a 'fully branded' display if a customer clicks into our car. That is exactly what we should have in the first place.
Cost
I have just used some of my saving in my package reduction by signing up to a 15 car agreement with motors.co.uk. The cost of this is £81.25 + VAT. Autotrader is approximately £500. I cannot confirm exactly as I am waiting for a new invoice.
I can list a car on eBay with nine pictures for 28 days for £12.99 including VAT. Some £150 for fifteen cars, if I sign up for an eBay motors package it would be less.
Can you honestly say you believe Autotrader is worth that much more?
One of my biggest issues is the lack of product flexibility. I cannot use itemised pay per clicks, I cannot chose not to have video, I have to sign up to a specific number of cars. If I had the ability to be more precise with my spend, I might spend more.
Motor dealers are notorious for spending money at advertising as a knee jerk reaction, this used to be done through an advert in the paper but dealers are not using this any more for obvious reasons. Here is a glaring business opportunity for Autotrader to take yet it fails to do so.
Lack of Proactivity
I had a phone call from Vodafone when my contract was close to the end saying that they had reviewed my deal and they had a new one which would save me a lot of money. I now spend a third of what I did but I am still with them. I could have spent a third with O2 or Orange but they kept me on board.
I have been overspending for six months or so, I am sure you have the technology to write reports which isolate dealers in my position but where is the outbound call?
I had been a subscriber to Autotrade Mail since we started in 2007 and was very happy with the product. I received a letter a month ago telling me the cost of the service was increasing by 25%. I asked Laura (sales manager) why, 'because we have not had a price rise for ten years' she replied, 'yes, but what about all the extra subscribers you have now, shrinking margins etc etc'......silence. Exactly the sort of blatant profiteering that we are seeing with Autotrader.
I finally met my local representative some two weeks ago. When I told her that I had heard you had a retention team that was cutting deals to existing customers, she told me she could do nothing about it and had to liase with someone else.
What is her function? As lovely as it is to see a nice girl with a pretty smile asking me what business is like, I am afraid I am too busy to indulge in meaningless chit chat. She said to me 'there is a brick wall up and I can't get over it' during her visit, 'that is because you don't have any ladders' I replied.
The irony of it all
What makes me laugh the most is the new CRM hat that everyone at Autotrader is wearing. You are telling me that I will get monthly visits and reviews and that essentially you want to cuddle me.
The current pricing and product actions do little to reassure me your long term goals include building customer relationships.
You now want to put prices up from March the 1st.
This is not a good start for the new regime......
Thursday, 7 January 2010
Scrappage - Papering over the cracks - Part I
Eighteen months ago, many franchised dealers were left hanging over the financial precipice with only the thinnest of credit lines or reserves preventing their doom. Inevitably there were some casualties and most towns saw at least one familiar dealer face disappear.
The scrappage scheme is forecasted to end next month and unless there is another form of respite, some of the dealers who survived by their fingernails could again be left dangling on the edge.
So why are many in this unfortunate position?
The noughties (I cannot get my head round this expression but for lack of a better term) was the period of excess in all industries and the motor trade was no exception.
Record registration figures, easy credit and a spend culture meant manufacturers of all sizes went on the offensive for market share and it was down to the dealer network to deliver it.
Most franchised dealers are independently owned by groups of differing sizes or in some cases owner drivers. Manufacturers reluctantly get involved in motor retailing but central London locations are often manufacturer owned.
European competition legislation saw a change of margin structure for dealers in the noughties. Whereas in the past a dealer bought a car for a typical wholesale cost of some 15% less than retail, front end margins reduced to between 5-8% with an additional 7% or so subject to both target and dealer standards.
The term 'dealer standards' will cause dealer principles or company directors up and down the land to shudder. Essentially a large operating manual exists for most manufacturers, usually taking the form of an acronym. This 'bible' covers everything from colour of the showroom carpet to how an enquiry is managed.
Using the target and dealer standard payments as a form of carrot, manufacturers encouraged many motor businesses to invest in new premises or redevelop existing sites. Again, examples of this will be evident anywhere across the country.
It should be noted that average returns for dealers had dropped from somewhere like 10% in the 1990's to around an average of 2%. Porsche retail consistently led the market with returns of 4-5% so increasing volume was paramount to retain profitability.
So armed with large mortgages and loans from manufacturers, many dealers embarked on relatively large scale developments using market projections which to say were ambitious would be an understatement.
And then the wheels came off.
Scrappage has limited the impact of large scale volume reductions for many dealers but those searching questions are soon to be asked of the industry again.
The next part will concentrate on the weakness of the retail motor industry.
The scrappage scheme is forecasted to end next month and unless there is another form of respite, some of the dealers who survived by their fingernails could again be left dangling on the edge.
So why are many in this unfortunate position?
The noughties (I cannot get my head round this expression but for lack of a better term) was the period of excess in all industries and the motor trade was no exception.
Record registration figures, easy credit and a spend culture meant manufacturers of all sizes went on the offensive for market share and it was down to the dealer network to deliver it.
Most franchised dealers are independently owned by groups of differing sizes or in some cases owner drivers. Manufacturers reluctantly get involved in motor retailing but central London locations are often manufacturer owned.
European competition legislation saw a change of margin structure for dealers in the noughties. Whereas in the past a dealer bought a car for a typical wholesale cost of some 15% less than retail, front end margins reduced to between 5-8% with an additional 7% or so subject to both target and dealer standards.
The term 'dealer standards' will cause dealer principles or company directors up and down the land to shudder. Essentially a large operating manual exists for most manufacturers, usually taking the form of an acronym. This 'bible' covers everything from colour of the showroom carpet to how an enquiry is managed.
Using the target and dealer standard payments as a form of carrot, manufacturers encouraged many motor businesses to invest in new premises or redevelop existing sites. Again, examples of this will be evident anywhere across the country.
It should be noted that average returns for dealers had dropped from somewhere like 10% in the 1990's to around an average of 2%. Porsche retail consistently led the market with returns of 4-5% so increasing volume was paramount to retain profitability.
So armed with large mortgages and loans from manufacturers, many dealers embarked on relatively large scale developments using market projections which to say were ambitious would be an understatement.
And then the wheels came off.
Scrappage has limited the impact of large scale volume reductions for many dealers but those searching questions are soon to be asked of the industry again.
The next part will concentrate on the weakness of the retail motor industry.
Thursday, 17 December 2009
What will happen to the car market in 2010?
Starting a used car business in 2007 was like opening a tanning salon in Pompeii the day before a few natives started to wonder why, after a giant plate of pasta, they thought they could hear their stomach's rumbling.
However, despite the very challenging trading conditions we turned a profit. 2009 has been rewarding as we have learnt from painful mistakes made in 2008 and the market has returned in force.
So having experienced the euphoric highs and depressing lows, what on earth is 2010 going to throw at The Internet Car Lot?
The market starts with new car sales.
The scrappage scheme is forecast to run out of funds in February and there is no sign yet that the Government will extend the scheme. Despite the end coming close to election time, with Government spending likely to be the key campaign issue, throwing money at shiny new cars could be difficult when so many cuts are likely in public spending.
VAT returns to 17.5% and there are many (myself included) who thinks it could rise to 20% post election. As VAT is payable on all new cars this will add further cost to the price of a new car.
The weakness of the pound has already seen Daihatsu pull out of the UK car market and most manufacturers have implemented price rises through the course of this year. Whilst there a number of manufacturers who build cars in the UK, only certain models (with the exception of JLR and MINI) are positively affected with the majority still coming from primarily the Eurozone.
Therefore I think we will see a very tough new car market and one which will be under severe financial pressure. I was speaking to a German manufacturer dealer principle yesterday and his 2010 target is the same as this year so I am concerned some car makers will be in for a shock.
Lest we forget that the forecast for the 2010 economy in general is not good. The term 'w-shaped recession' is being bandied about regularly and it is difficult to argue against given economic data.
So, how will that affect us?
Positively I hope and using common sense there is no reason to be doubtful.
There is still no overall surplus of used cars. The majority of registrations in 2009 have been genuine retail or business customers, not hordes of pre-registered vehicles like we saw in 2008.
Dealers do not have the funding levels available for pre-reg to be openly available and as discussed already, many manufacturers will find it too costly to support this form of marketing activity.
Many people may be dissuaded from a new car if the average new car price rise is as much as 5% so may look for value in used cars instead.
In summary there is no way that cars will rise in price like they did throughout 2009 but I think it is fair to say the prices will remain very consistent.
Jamie
However, despite the very challenging trading conditions we turned a profit. 2009 has been rewarding as we have learnt from painful mistakes made in 2008 and the market has returned in force.
So having experienced the euphoric highs and depressing lows, what on earth is 2010 going to throw at The Internet Car Lot?
The market starts with new car sales.
The scrappage scheme is forecast to run out of funds in February and there is no sign yet that the Government will extend the scheme. Despite the end coming close to election time, with Government spending likely to be the key campaign issue, throwing money at shiny new cars could be difficult when so many cuts are likely in public spending.
VAT returns to 17.5% and there are many (myself included) who thinks it could rise to 20% post election. As VAT is payable on all new cars this will add further cost to the price of a new car.
The weakness of the pound has already seen Daihatsu pull out of the UK car market and most manufacturers have implemented price rises through the course of this year. Whilst there a number of manufacturers who build cars in the UK, only certain models (with the exception of JLR and MINI) are positively affected with the majority still coming from primarily the Eurozone.
Therefore I think we will see a very tough new car market and one which will be under severe financial pressure. I was speaking to a German manufacturer dealer principle yesterday and his 2010 target is the same as this year so I am concerned some car makers will be in for a shock.
Lest we forget that the forecast for the 2010 economy in general is not good. The term 'w-shaped recession' is being bandied about regularly and it is difficult to argue against given economic data.
So, how will that affect us?
Positively I hope and using common sense there is no reason to be doubtful.
There is still no overall surplus of used cars. The majority of registrations in 2009 have been genuine retail or business customers, not hordes of pre-registered vehicles like we saw in 2008.
Dealers do not have the funding levels available for pre-reg to be openly available and as discussed already, many manufacturers will find it too costly to support this form of marketing activity.
Many people may be dissuaded from a new car if the average new car price rise is as much as 5% so may look for value in used cars instead.
In summary there is no way that cars will rise in price like they did throughout 2009 but I think it is fair to say the prices will remain very consistent.
Jamie
Monday, 30 November 2009
Banger for your bucks...
In addition to the hordes of three year old Ford Foci (is this the correct pluralisation of a Focus?!), German machinery and other fine motoring specimens that you find on http://www.theinternetcarlot.co.uk/, there is another - dare I say it - almost dirtier side to our business.
Before you ask, nothing illegal, nothing sinister and certainly nothing that would involve a visit from those splendid civil servants at HMRC.
I am talking about the world of the 'banger'. To me, a 'banger' can be defined as a car which may be old or mechanically infirm but is definitely cheap.
We generate many cars in part exchange which fall into one if not all three of those categories. In order to maintain good relationships with franchised dealerships, we also take many of their cheaper cuts. Think of us as a Hilton hotel with a youth hostel in the basement.
These make there way either to http://myworld.ebay.co.uk/internet-carlot/ or through a 'spares/repair' advertisement on Autotrader.
Many dealers do not relish getting involved in this end of the car market but I - as has been said by many - am different to the rest.
My affinity to the banger started in 1998 when I joined the trade. As a reward (sic) for working many long hours, the sales manager agreed to let me use whatever delightful beasts we had lying around the back instead of using my own car.
One of my best mates Alec was already into this form of car buying. Recently he bought a 1985 BMW 316i for £800 from a man called Cheeki who lived in Wembley. The two hour journey to go ten miles on various TFL services meant he was somewhat committed to the purchase before he arrived. On the test drive Alec noticed that the speedo was not working. 'Cheeki', he said, 'how do you know how fast you are going?' Alec enquired, 'I imagine.' Cheeki replied casually...
I drove some serious sheds that summer including a Rover 820i that broke down as I put it back in the compound to such an extent that it had to be scrapped the next day, but none of them let me down......significantly.......or at least at rush hour.
When I worked at BMW, I often left my company car behind so that I could drive the 30 miles home in one of our part exchanges. You could say it was like choosing the Golden Girls over Girls Aloud.
The difference between then and now is that the bangers are ours and as a result I get more pleasure from the experience.
Yesterday I bought a 1998 (R) Mercedes C220CDi estate in doom blue (read 'the money of colour' post for a description) with dark blue cloth. It has only done 203,000 miles and is as square as Gordon Brown. OK, so an atomic cloud appears every time the old girl fires up but when she is running she purrs like a kitten.....with asthma. OK, when we are driving the dash is lit up like Oxford Street at Christmas but none of those warning lights are severe enough to worry about. It would be bad form to disclose how much I paid for her but suffice to say in true motor trade fashion it involved a small hairy primate.
Searching for the perfect banger is like searching for the perfect partner. You have many bad dates but keep coming back for more. To push this woeful metaphor to the dangerous edge, you could describe me as having Mormon-esque values when it comes to bangers.
The banger allows you to scratch any motoring itch. £1000 can buy an old MR2, a classic (although no doubt rusty as an anchor) Mini or an old Landie, the list is endless.
So am I here advocating that everyone should save their hard earned money and go and buy a banger?
No and not just because I sell some more expensive cars.
The banger can be a fickle friend.
Many are the time I have been stood up in a pub with a pint in my hand by a banger. Many are the times I have lent the banger some money only for the banger to disappear. Many are the times I have gone on holiday with a banger and we have fallen out.
You get the picture.
I am a great friend though and cannot help coming back for more.....
Jamie
Before you ask, nothing illegal, nothing sinister and certainly nothing that would involve a visit from those splendid civil servants at HMRC.
I am talking about the world of the 'banger'. To me, a 'banger' can be defined as a car which may be old or mechanically infirm but is definitely cheap.
We generate many cars in part exchange which fall into one if not all three of those categories. In order to maintain good relationships with franchised dealerships, we also take many of their cheaper cuts. Think of us as a Hilton hotel with a youth hostel in the basement.
These make there way either to http://myworld.ebay.co.uk/internet-carlot/ or through a 'spares/repair' advertisement on Autotrader.
Many dealers do not relish getting involved in this end of the car market but I - as has been said by many - am different to the rest.
My affinity to the banger started in 1998 when I joined the trade. As a reward (sic) for working many long hours, the sales manager agreed to let me use whatever delightful beasts we had lying around the back instead of using my own car.
One of my best mates Alec was already into this form of car buying. Recently he bought a 1985 BMW 316i for £800 from a man called Cheeki who lived in Wembley. The two hour journey to go ten miles on various TFL services meant he was somewhat committed to the purchase before he arrived. On the test drive Alec noticed that the speedo was not working. 'Cheeki', he said, 'how do you know how fast you are going?' Alec enquired, 'I imagine.' Cheeki replied casually...
I drove some serious sheds that summer including a Rover 820i that broke down as I put it back in the compound to such an extent that it had to be scrapped the next day, but none of them let me down......significantly.......or at least at rush hour.
When I worked at BMW, I often left my company car behind so that I could drive the 30 miles home in one of our part exchanges. You could say it was like choosing the Golden Girls over Girls Aloud.
The difference between then and now is that the bangers are ours and as a result I get more pleasure from the experience.
Yesterday I bought a 1998 (R) Mercedes C220CDi estate in doom blue (read 'the money of colour' post for a description) with dark blue cloth. It has only done 203,000 miles and is as square as Gordon Brown. OK, so an atomic cloud appears every time the old girl fires up but when she is running she purrs like a kitten.....with asthma. OK, when we are driving the dash is lit up like Oxford Street at Christmas but none of those warning lights are severe enough to worry about. It would be bad form to disclose how much I paid for her but suffice to say in true motor trade fashion it involved a small hairy primate.
Searching for the perfect banger is like searching for the perfect partner. You have many bad dates but keep coming back for more. To push this woeful metaphor to the dangerous edge, you could describe me as having Mormon-esque values when it comes to bangers.
The banger allows you to scratch any motoring itch. £1000 can buy an old MR2, a classic (although no doubt rusty as an anchor) Mini or an old Landie, the list is endless.
So am I here advocating that everyone should save their hard earned money and go and buy a banger?
No and not just because I sell some more expensive cars.
The banger can be a fickle friend.
Many are the time I have been stood up in a pub with a pint in my hand by a banger. Many are the times I have lent the banger some money only for the banger to disappear. Many are the times I have gone on holiday with a banger and we have fallen out.
You get the picture.
I am a great friend though and cannot help coming back for more.....
Jamie
Tuesday, 17 November 2009
Remember remember to buy in November
Sometimes you cannot help when you need to change your car.
The sight of people stranded by the roadside with their arms folded staring demonically at a hazard light flashing car is not uncommon.
Exasperation leads to the purchase of a new car. Ironically in most cases it follows a large bill to fix the catalytic problem which in our experience rarely manifests itself again but once that seed has been sown it is very hard to ignore.
There is also the circumstantial need. A lady with a bump, a set of L plates and a puppy are all welcome sights at any car dealership as these are sure signs of a new car requirement.
Emotional factors conspire to drive (excuse the tacky pun) other people to a car change
. I once sold a Rover 216i cabriolet to a couple on a glorious Sunday morning. Not unusual in itself but the fact they were wearing paint splattered overalls, had a car full of paint and the fact our dealership was next to Homebase suggested it may have been something of an impulse purchase.
Some people however have the steely resolve to look for a car when they feel the market is ripe for the best deal.
It was often considered that the best time to buy a car (new or used) was in August when dealers were chasing new car targets and many more used vehicles hit the market. The motor trade forced a change eight years ago to March and September plate changes so the significance of these dates has been reduced.
I now believe November is the best month to buy a used car specifically. Why?
Primarily it seems the retail public hide away in November. The looming expense and lack of holiday before Christmas has a massive impact.
The seasonal change of reduced daylight and colder weekends can also affect the psychological prospect of going to examine used cars.
The supply of used cars increases as many large fleet operators and dealer groups try to reduce stocking levels before year end so the disposal process starts in November.
Manufacturers are starting to review their year activities and pressure is applied to their dealers to hit targets which has a knock on affect to their used car buying activity.
All of these factors outlined above conspire to force an abnormally higher reduction to both wholesale and retail prices alike.
Be warned though, mid December normally heralds a return for car buyers as they reconcile their Christmas expenditure with the purchase of a new car.
Many savvy dealers are also very active with purchasing as they aim to counter the strong wholesale prices often seen in January so supply can dwindle.
Jamie
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