West London Motor Group

Welcomes Mega Dealer

Mohammed Ashraf – Sales Manager

© Copyright Megadealer Best ManagementF&I In the UK - 2010

Agenda

• Welcome & Introduction

• Overview of WLMG

• F&I Strategy within Independent Dealers

– Structure, Volumes, Income

– Finance partners

– Negotiating the right package

– Product mix – PCP, HP, Personal Lease, GAP, CPI, Service Plans etc

– Challenges – CCD, FSA, TCF

– Renewal

© Copyright Megadealer Best ManagementF&I In the UK - 2010

Our Business

© Copyright Megadealer Best ManagementF&I In the UK - 2010

Our History

1996 - 1st

Site

2004 – 2nd Site

2006 – 3rd

Site at Mill Hill

2007 –Acquires Dan Perkins

2008 –Introduction of Kia and Peugeot

© Copyright Megadealer Best ManagementF&I In the UK - 2010

Our Structure

Naeem Hanif

Managing Director & Owner

Naeem Hanif

Head of Sales

12 x Site General Managers

Peter Dickey

Head of Financial Control

Eddie Freydon

Group F&I Manager

12 x Site Business Managers

• No ‘Large Group’ structure

• All activity monitored daily by Naeem

• Each site responsible for staff, recruitment, quality

etc

© Copyright Megadealer Best ManagementF&I In the UK - 2010

WLMG- Overview

Group Sales Volumes

New 4,200

Used 7,800

SalesTurnover

£89,107,741 from Sales department

Of which £4,9444,000 from F&I Income

© Copyright Megadealer Best ManagementF&I In the UK - 2010

WLMG- F&I Strategic Approach

Business Manager structure at all sites

F&I central to the group sales process

Business Manager is introduced at the start of the process

Strong Used Car performance

YTD 59%, 2009 51%, 2008 63%

Strong Insurance performance

1.3 products per customer

Variations of approach by site/brand

Incentivised for all staff

© Copyright Megadealer Best ManagementF&I In the UK - 2010

WLMG- F&I Headlines

Finance Penetrations – 62%

New Penetration – 68%

Used Penetration – 59%

IPRD - £412

New IPRD - £210

Used IPRD - £580

Total Finance Balances - £55,246,800

© Copyright Megadealer Best ManagementF&I In the UK - 2010

WLMG- Finance Providers

1st String Provider

RCI Financial Services

2nd String Provider

Black Horse Financial Services (Lloyds Bank)

Carlyle Finance

Sub-Prime / Near-Prime provider

North Herts Credit

© Copyright Megadealer Best ManagementF&I In the UK - 2010

WLMG- Negotiating Group Package

Key Issues

Cashflow

Staff incentive

Incentivising higher balances

Driving product mix

Balance between New & Used cars

Customer value.

© Copyright Megadealer Best ManagementF&I In the UK - 2010

WLMG- Negotiating Group Package

Key Elements

Up-front signing on fees

Volume Bonus - % of balances

DIC - %

Debit Back - %

Insurance Incomes

Wholesale funding.

© Copyright Megadealer Best ManagementF&I In the UK - 2010

External Influences

Juggling Different Manufacturers

Manufacturer franchise standards

Franchise Finance Companies

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?....

West London Motor Group

Welcomes Mega Dealer