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Wed
Aug 27 2008

Recession bites: a tale of two dealers

James Ruppert

Not all of the motor trade is in trouble. Last week I went to two dealerships in one morning.

The first had the glorious whiff of recently ignited petrol, occupied ramps and nowhere to sit in the reception area. Less than a mile away, the other had lots of polished plate glass and floor tile, but no life, soul or customers. It was the contrast between a dealer getting it right in a recession, and another stuck up a blind alley.

Both were Jag dealers. The first is a solidly independent operation with a busy workshop and affordable cars getting sold. The other was a main dealer with tumbleweed under the ramps and a showroom with all the bustle and atmosphere of a crypt.

Ask any motor trade professional and they’ll tell you that, since the August 1st number plate change was abolished, this is the one of the quietest months of the year. We’ll have to wait until September to see just how bad things really are.

The independent had noticed a downward dip recently, but it was keeping busy doing what it does best. It’s staffed by a friendly crew who know what they’re doing, and who can do it cheaper than a main agent, even if they have to buy in the same diagnostic boxes and elec-trickery. And value still sells, with tidy XJs, S-Types and XKs looking great and attracting sensible customers. 

At the main agent there was less atmosphere than on the surface of the moon. In a way, you can’t blame the franchisee: what can they do about VED, credit crunches and the fact that you can even get money off an XF these days? It was a depressing place to be - and just so eerily quiet. And behind their fixed, professional smiles, there was precious little for the staff to be keen about.

So there you have it: whatever the Government says about successive quarters of negative expansion being necessary to justify the ‘R’ word, there’s already a recession in the nation’s showrooms.

But there’s also hope that, if they are prepared to adapt, they might just survive. I mean, why was the main dealer so quiet and empty? Surely this is the perfect time to get a bit of passion and enthusiasm going on: a Sir Williams Lyons diorama, some Le Mans Scalextric and maybe some baby Jags for the kids to play with.

Come on guys: the ship might be sinking, but you don’t need to go down with it.

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About James Ruppert

Used to sell BMWs, but he's no yuppie; has a '64 Mini Cooper in his garage and a '57 BSA Bantam in his house. Has bought and sold hundreds of used cars, and he isn't finished yet.

Comments

The Colonel August 27, 2008 2:43 PM

My mother has just bought a 320d.  Pre reg, no miles to speak of, nice spec, 22% below list.  Plenty about if you are looking for a bargain...relatively speaking.

I went with her on Saturday to the (main) dealer, 9:00am and the place was busy from the off.  The salesman selling the car to my mum even complained that he'd booked off Sunday and Monday and was about to spend the day doing handovers and so missing out on what seemed to be many potential new sales.

ThwartedEfforts August 28, 2008 9:49 AM

^^ BMW dealers are busy because they sell the country's most popular cars. The 3-Series is a top ten seller and the MINI can only gain popularity in a recession - it's cheap, economical, and also the slowest depreciating car on sale. No surprise that a Jaguar dealer offering the dullest range of any manufacturer today (and that includes the nasty Chinese-knock-off-alike XF, of which I've seen perhaps three since March) is such a stark contrast.

So many people clamouring for a 3-Series does mean one thing though: BMW dealers have become the least helpful. Salesmen there don't even have to stand up to sell cars, it's that easy for them, and while you tend to forgive an unconcerned, overtly lazy attitude from them when the whiff of a new car is clouding your mind, it quickly becomes tiresome just getting the chummy guy who sold you your car to answer the phone any time after you've signed the contract.

No two dealers are the same, of course, but BMW manages to be surprisingly consistently awful.

The Colonel August 28, 2008 10:43 AM

For what it's worth, I've only ever owned BMWs and never have had a problem with the service I have received.  Yes there have been the odd dicks about and I've had cause to complain, but you'd expect that to happen in any 19 year relationship with an organisation, but would never describe any experience as awful.  What's your experience?

The particular dealership I was at on Saturday (that doesn't have a Mini dealership attached) I'd never been to before, seems to be no exception, and, surprisingly, one of their particular big sellers at the moment is the X6 - though I suspect that is very local.

sierra August 28, 2008 10:47 AM

SMMT YTD sales figures to July:

BMW    +11.79% (+3.75% in July)

Jaguar +14.46% (+29.42% in July)

If that's a recession - bring it on

Think the first two words of the headline should be deleted.

Black Night August 29, 2008 2:57 AM

just a quick word to Thrawted Efforts, i really do feel that for you to say that the Jag XF is a cheap chinease knock off if a massive wrong doing, having been inside the car and driven myself i can safely say that this comment is completely unjustified. The car exudes a sense of individuality from the moment you set foot inside, its nothing like any other car of its class especially chinease. Maybe however I would agree with you if you said German, but whats bad about that at the end of the day??

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