inchcape
DESCRIPTION
Inchcape GroupTRANSCRIPT
VW West London
Welcomes Megadealer
Paul Jackson –
General Sales Manager
© Copyright Megadealer Best ManagementF&I In the UK - 2010
Agenda
• Welcome
• Introduction to Inchcape Group
• Overview of VW West London
• The Role of F&I
– Structure, Volumes, Income
– Impact of Group, Manufacturer & VWFS
– Product mix – PCP, HP, Personal Lease, GAP, CPI, Service Plans etc
– Customer Retention
– Challenges – CCD, FSA, TCF
© Copyright Megadealer Best ManagementF&I In the UK - 2010
Global operation
Retail & Distributor models
Represent 25 brands in 26 global markets
Chile & Peru in South America
127 UK dealers
23 VW dealers
Global sales revenues (2009) - £5.6bn
UK Sales Revenues - £2.1bn
Global Profit (2009) - £136m
UK PBT - £46.7m
Inchcape Group
© Copyright Megadealer Best ManagementF&I In the UK - 2010
Inchcape Group
Corporate Growth Drivers
Vehicle Sales
Finance & Insurance
© Copyright Megadealer Best ManagementF&I In the UK - 2010
VW West London
• 455 New Sales per Year
• 550 Used Sales per Year
• Total annual Sales turnover £12.8m
• 65 employees
• 12 within sales team
© Copyright Megadealer Best ManagementF&I In the UK - 2010
VW West London
Shaun Kirby
Head of Business
Paul Jackson
Gen Sales Manager
Paul Jackson
New Car Manager
4 x Sales Execs
Brett Wiggins
Used Car Manager
4 x Sales Execs
Nick LapthorneBusiness Manager
Glenn Smoker
Service Manager
Keith Carvalho
Parts Manager
Kevin Justice Accountant
© Copyright Megadealer Best ManagementF&I In the UK - 2010
VW West London- The Sales Process
Receive & Welcome AgendaRapport & Positive
Appraisal
Summary & Strategy Meeting
PresentationDemonstration/Test
Drive
Strategy Break Customer ProposalJustification &
Negotiation
© Copyright Megadealer Best ManagementF&I In the UK - 2010
VW West London- Point of Sale Optimsation
© Copyright Megadealer Best ManagementF&I In the UK - 2010
VW West London- Headline F&I Statistics
• F&I Sales Volumes
• Finance Balances £5.7m
• 900 Insurance Products pa
• Sales Penetrations
• 60% New Car Finance Penetration
• 30% Used Car Finance Penetration
• 0.9 Ins products per customer
• F&I Incomes
• £170k Finance Income – POS
• £165k Insurance Income – POS
• £335k Total F&I Income - POS
© Copyright Megadealer Best ManagementF&I In the UK - 2010
VW West London- The Role of F&I
© Copyright Megadealer Best ManagementF&I In the UK - 2010
VW West London- Finance Product Mix
© Copyright Megadealer Best ManagementF&I In the UK - 2010
VW West London- Insurance Product Mix
© Copyright Megadealer Best ManagementF&I In the UK - 2010
VW West London- Income
Key Measures
IPRU – Income per Retail Unit
Total F&I Income / Total Retail Sales
New, Used & Combined
FPU – Finance Income Per Unit
New, Used & Combined
IPU – Insurance Income Per Unit
New, Used & Combined
Insurance Sales Per Retail Sale
© Copyright Megadealer Best ManagementF&I In the UK - 2010
VW West London- Income
IPRU FPU - New FPU - Used IPU - New IPU - Used Ins/Retail
Q1 2010 £219 £79 £93 £144 £132 0.5
Q2 2010 £360 £101 £124 £153 £198 0.9
Q3 2010 £369 £113 £234 £171 £183 0.8
YTD 2010 £311 £95 £185 £154 £166 0.7
© Copyright Megadealer Best ManagementF&I In the UK - 2010
VW West London- Income
© Copyright Megadealer Best ManagementF&I In the UK - 2010
External Influences
Group control
Volkswagen standards
VWFS
F&I Reviews etc
Risk management
Underwriting (F & I)
FSA/TCF
© Copyright Megadealer Best ManagementF&I In the UK - 2010
Challenges
Introduction of CCD
Timetable
FSA oversight & control
TCF
Competition Commission Remedies
CPI
Direct Lenders
Supermarkets etc
© Copyright Megadealer Best ManagementF&I In the UK - 2010
QUESTIONS?....
© Copyright Megadealer Best ManagementF&I In the UK - 2010
Summary
F&I Income represents a significant % of total sales profit
Product mix has moved from F to I in terms of sales and income – 50%/50% split in income terms
Finance & Insurance are central to CRM strategy
VW West London
welcomes Megadealer
Paul Jackson –
General Sales Manager