Opinions please...

[Dan]

Please give me your honest opinions :

 

Ok, your looking for a nearly new 350z, say about £20k.

You start on Auto Trader, then follow the link to the dealers website.

The website looks good.

You phone the salesman, and he is polite and courteous, all goes well.

You decide to make the trip to view the car.

 

How important is the image of the site when you arrive ?

 

Imagine it's an old petrol station, with a canopy covering the area where the pumps used to be and a tiny office which used to be the cash office where people paid for their petrol. It's tidy, freshly painted etc, but just an old petrol station with a concrete forecourt.

Does that matter ?

 

Would it stop you buying the car, or would you prefer to buy from more upmarket premises ?

Thanks in advance.

[Stew]

I would probably prefer something kind of upmarket however I really don't think it matters too much. Some upmarket looking dealers are crap! I always look at all the stock to gauge the general nick of the cars before looking at the one I'd be interested in. I think if all the cars are clean and well presented (not just the one you came to veiw) it says more about the dealer than their premises.

 

It wouldn't stop me buying if I felt right and at ease in the place.

 

One of the good dealers up here (take in prestige stock only) is based in an old petrol station and they are always busy!

[Beavis]

Please give me your honest opinions :

 

Ok, your looking for a nearly new 350z, say about £20k.

You start on Auto Trader, then follow the link to the dealers website.

The website looks good.

You phone the salesman, and he is polite and courteous, all goes well.

You decide to make the trip to view the car.

 

How important is the image of the site when you arrive ?

 

Imagine it's an old petrol station, with a canopy covering the area where the pumps used to be and a tiny office which used to be the cash office where people paid for their petrol. It's tidy, freshly painted etc, but just an old petrol station with a concrete forecourt.

Does that matter ?

 

Would it stop you buying the car, or would you prefer to buy from more upmarket premises ?

Thanks in advance.

 

Would say that it would not matter, if the car is right and the one you want then i would not let it put me off. At the end of the day you pay for the smart premise's

[Sarnie]

Would make hardly any difference to me. As long as the person I was dealing with was honest and upfront and not a delboy car salesman trying to blag me.

 

Also, as long as the price was right, car was in the desired condition then I'd have no problem with it.

 

 

One thing to add, having more upmarket premises would perhaps inspire conficence in me that the compnay is prosperous and not out just to make a quick buck from a street corner type pitch. I would perhaps be more inclined to pay a little more for a car from a company that had smart premises. I would expect to pay less for a car from a smaller dealer with say, less cars and a lower standard of premises.

 

[sinbad]

Hi Dan, long time no speak, hope things are going well!

 

It would certainly put me off but not entirely, the more im paying the more id want it to look professional. If i was paying a coupe of grand for a car then it wouldnt be a problem but when you start thinking 10-15k + you want it to look more like a real showroom where some money has been spent. So that it looks like the owner is in it for the long run and not a quick buck. If it looks like your there to stay then it means your willing to work through issues you have with customers and therefore hopefully have good customer service wher if i had a problem with my 20k car i could go back and get it sorted, where the dealership isnt scared of forking out for warranty work to be done..

 

It wouldnt put me off buying but it would make me more sceptical and hesitant on buying..

[Chesterfield]

As long as the car checks out OK and everything about the vehicle is in order then it wouldnt concern me.

 

I know that councils can be awfully funny about planning permission for car lots, and a converted petrol station is probably one of the easier locations to get permissions for.

 

The business probably just decided to spend more money on stock than they did on building new premises.

[Digsy]

Hi Dan, long time no speak, hope things are going well!

 

It would certainly put me off but not entirely, the more im paying the more id want it to look professional. If i was paying a coupe of grand for a car then it wouldnt be a problem but when you start thinking 10-15k + you want it to look more like a real showroom where some money has been spent. So that it looks like the owner is in it for the long run and not a quick buck. If it looks like your there to stay then it means your willing to work through issues you have with customers and therefore hopefully have good customer service wher if i had a problem with my 20k car i could go back and get it sorted, where the dealership isnt scared of forking out for warranty work to be done..

 

It wouldnt put me off buying but it would make me more sceptical and hesitant on buying..

 

+1

[sinbad]

I would probably prefer something kind of upmarket however I really don't think it matters too much. Some upmarket looking dealers are crap! I always look at all the stock to gauge the general nick of the cars before looking at the one I'd be interested in. I think if all the cars are clean and well presented (not just the one you came to veiw) it says more about the dealer than their premises.

 

It wouldn't stop me buying if I felt right and at ease in the place.

 

One of the good dealers up here (take in prestige stock only) is based in an old petrol station and they are always busy!

 

+1 have to agree with this aswell. Company image and how your dealt with also plays a big part in my buying decision.

[GIXXERUK]

if the same car was in both premises then it would come down to reputation

 

the premises you describe is exactly the same as a car sales near me, old petrol station forecourt etc and the guy is now in prison for clocking cars, this is more likely to occur with a small independent trader

 

BUT if the place had a good rep with a knowledgable salesman then i would rather give him my money than a faceless upmarket Co

 

it really depends on that initial contact, i have had poor experiences with both - a small trader was not interested in the problems i found with the car and gave me the impression "if you dont buy it someone will !!" and at arnold clark i was buying a brand new clio and a Z off them (best part of 30k) and the guy wouldn't let me leave to consider his offer unless i left him a credit card to ensure i returned !! i walked away from both

[Trev-the-Rev]

I would probably prefer something kind of upmarket however I really don't think it matters too much. Some upmarket looking dealers are crap! I always look at all the stock to gauge the general nick of the cars before looking at the one I'd be interested in. I think if all the cars are clean and well presented (not just the one you came to veiw) it says more about the dealer than their premises.

 

It wouldn't stop me buying if I felt right and at ease in the place.

 

One of the good dealers up here (take in prestige stock only) is based in an old petrol station and they are always busy!

 

+1 have to agree with this aswell. Company image and how your dealt with also plays a big part in my buying decision.

 

+2. £20k is still quite a lot of money to spend and I wouldn't feel that comfortable shelling out that amount to an organisation that doesn't relect the desired image. And that's from someone who spent 14 years in the motor industry.

[MrLizard]

I would probably prefer something kind of upmarket however I really don't think it matters too much. Some upmarket looking dealers are crap! I always look at all the stock to gauge the general nick of the cars before looking at the one I'd be interested in. I think if all the cars are clean and well presented (not just the one you came to veiw) it says more about the dealer than their premises.

 

It wouldn't stop me buying if I felt right and at ease in the place.

 

One of the good dealers up here (take in prestige stock only) is based in an old petrol station and they are always busy!

 

+1 have to agree with this aswell. Company image and how your dealt with also plays a big part in my buying decision.

 

+2. £20k is still quite a lot of money to spend and I wouldn't feel that comfortable shelling out that amount to an organisation that doesn't relect the desired image. And that's from someone who spent 14 years in the motor industry.

 

+3

 

20k is a lot of money for anything, i would want the surrounding and the rep to reflect the amount of money i was spending, i got my 350 from a sports car specialist, sat next to a 911 and an rs4, i paid 20k for a 56 plate gt with 5k miles on it, if your looking at spending 20k on a car you will find one at an outfit that makes you comfortable.

 

gluk

[nixy]

I think for me it would depend on the knowledge etc of the guy selling the car. If the place was a bit of a dump but the car was immaculate with history and he knew his stuff then it wouldn't bother me. What bothered me more was when I bought my last car from a big prestige car supermarket type place - loads of flash cars etc but the salesmen were all dressed in long woollen coats and looked like bouncers - it really put me off and made them look like they probably didn't know much about cars.

[Zedrush]

I would probably prefer something kind of upmarket however I really don't think it matters too much. Some upmarket looking dealers are crap! I always look at all the stock to gauge the general nick of the cars before looking at the one I'd be interested in. I think if all the cars are clean and well presented (not just the one you came to veiw) it says more about the dealer than their premises.

 

It wouldn't stop me buying if I felt right and at ease in the place.

 

One of the good dealers up here (take in prestige stock only) is based in an old petrol station and they are always busy!

 

+1 have to agree with this aswell. Company image and how your dealt with also plays a big part in my buying decision.

 

+2. £20k is still quite a lot of money to spend and I wouldn't feel that comfortable shelling out that amount to an organisation that doesn't relect the desired image. And that's from someone who spent 14 years in the motor industry.

 

+3

 

20k is a lot of money for anything, i would want the surrounding and the rep to reflect the amount of money i was spending, i got my 350 from a sports car specialist, sat next to a 911 and an rs4, i paid 20k for a 56 plate gt with 5k miles on it, if your looking at spending 20k on a car you will find one at an outfit that makes you comfortable.

 

gluk

 

+4

 

but then if you had a stunning pole dancer on the forecourt as well as the cars, then that would be all the confidence I need to purchase any car off you

[Trev-the-Rev]

I would probably prefer something kind of upmarket however I really don't think it matters too much. Some upmarket looking dealers are crap! I always look at all the stock to gauge the general nick of the cars before looking at the one I'd be interested in. I think if all the cars are clean and well presented (not just the one you came to veiw) it says more about the dealer than their premises.

 

It wouldn't stop me buying if I felt right and at ease in the place.

 

One of the good dealers up here (take in prestige stock only) is based in an old petrol station and they are always busy!

 

+1 have to agree with this aswell. Company image and how your dealt with also plays a big part in my buying decision.

 

+2. £20k is still quite a lot of money to spend and I wouldn't feel that comfortable shelling out that amount to an organisation that doesn't relect the desired image. And that's from someone who spent 14 years in the motor industry.

 

+3

 

20k is a lot of money for anything, i would want the surrounding and the rep to reflect the amount of money i was spending, i got my 350 from a sports car specialist, sat next to a 911 and an rs4, i paid 20k for a 56 plate gt with 5k miles on it, if your looking at spending 20k on a car you will find one at an outfit that makes you comfortable.

 

gluk

 

+4

 

but then if you had a stunning pole dancer on the forecourt as well as the cars, then that would be all the confidence I need to purchase any car off you

 

Jay, trust you to bring a serious deabate down to pure lust

[lomoto]

Very rarely do I buy a used car from a dealer (generally always go for private sale ) on the odd occasions I have, I wouldnt buy from any dealer that didnt have workshop facilities, the size of showropom or amount of potted plants and fancy decor just leaves me cold (I know I would be paying for them in the deal ) The workshop aspect is paramount in my opinion when buying a used car from a dealer..or else who is going to fix it should problems occur...Obviously I wouldnt buy from somewhere if the forecourt resembled a gypsy site no matter how nice the workshop..

 

Also the public aren't so gullible as to think they wont be paying for salubrious surroundings and it may deter people from even entering if you make it too posh

[Dan]

Some very good points there lads, thanks for all that.

Some differing points of view there too, but all appreciated and it's good to see how people see things differently.

I think it's important to mention that there wouldn't just be the one car at £20k sat among a load of cheaper stuff, the general level of stock would be quality so it would be surrounded by similar cars.

 

Ok, I'll give you the background in a nutshell. I operate from an ex-Nissan Main Dealer. I have a large forecourt with approx 70 cars, a showroom which takes 6 cars, large workshop with 5 ramps, reception area etc. I still attempt to maintain the main dealer type image, but we offer friendly service and we are down to earth people. I'm a car enthusiast at the end of the day, thats why I got into this business. This site is my dream, it really does look the part. So whats the problem ?

 

Ok, bottom line, the overheads are killing me. My break even is just under £20,000 per month, I have to make £20k to stand still. Thats my bills paid, staff wages, etc. Anything after that is profit, but to be blunt it is very little. I am basically treading water. I have been here for 18 months and basically drawn wages, and not had a return on my investment. Prior to this I had six years on a much smaller plot with a break even closer to £6k. And I made a lot of money.

 

I have found, almost by accident, this new site which I mentioned. It wants a lick of paint, new fence, cosmetic tidying. It is for sale ( my current site is leased, and the owner will not sell ) or to lease. The owner will do me a 3 year lease and let me buy it at any time, at the market price ( circa £300k now ). It's appearance does not compare to my current site, but neither do the overheads. I have decided that I would take 3 of my staff and with them my break even would be around £8,000. Instead of £20,000. I intend to sell the same cars I am selling now, off the same website, with the same company name and the same salesman, so in theory we would continue to do a similar level of business, and I would be making money again.

 

It's a big step leaving this site, but I think from a financial viewpoint I am never going to make a lot of money here, I'm always going to be paying the silly bills. I think I have to swallow my pride and lose the image, in return for putting some money in my pocket.

 

Thanks once again for all the feedback and viewpoints, it's very much appreciated

[Stew]

Could you in theory Dan, operate locally a 'prestige dealership' with independant staff at the big showroom selling cars put forward by surrounding dealerships. This would allow you to share the costs,

 

4 x dealers using it - overheads 5k each. or operate it with a commision, they pay a % of the sale price to operate.

 

You buy the small place and keep selling bread and butter higher profit motors.

 

 

 

Not sure if you have a clue what I'm on about or if it's possible.

[GIXXERUK]

you seem to have answered your own question really

 

tread water or make some profit !

 

plus you have your reputation so many existing customers will move with your business

 

unfortunately its a no brainer Dan, although i can see it would initially be a difficult choice to downsize

 

needs must and your in business to maximise your profit

[Sarnie]

Some very good points there lads, thanks for all that.

Some differing points of view there too, but all appreciated and it's good to see how people see things differently.

I think it's important to mention that there wouldn't just be the one car at £20k sat among a load of cheaper stuff, the general level of stock would be quality so it would be surrounded by similar cars.

 

Ok, I'll give you the background in a nutshell. I operate from an ex-Nissan Main Dealer. I have a large forecourt with approx 70 cars, a showroom which takes 6 cars, large workshop with 5 ramps, reception area etc. I still attempt to maintain the main dealer type image, but we offer friendly service and we are down to earth people. I'm a car enthusiast at the end of the day, thats why I got into this business. This site is my dream, it really does look the part. So whats the problem ?

 

Ok, bottom line, the overheads are killing me. My break even is just under £20,000 per month, I have to make £20k to stand still. Thats my bills paid, staff wages, etc. Anything after that is profit, but to be blunt it is very little. I am basically treading water. I have been here for 18 months and basically drawn wages, and not had a return on my investment. Prior to this I had six years on a much smaller plot with a break even closer to £6k. And I made a lot of money.

 

I have found, almost by accident, this new site which I mentioned. It wants a lick of paint, new fence, cosmetic tidying. It is for sale ( my current site is leased, and the owner will not sell ) or to lease. The owner will do me a 3 year lease and let me buy it at any time, at the market price ( circa £300k now ). It's appearance does not compare to my current site, but neither do the overheads. I have decided that I would take 3 of my staff and with them my break even would be around £8,000. Instead of £20,000. I intend to sell the same cars I am selling now, off the same website, with the same company name and the same salesman, so in theory we would continue to do a similar level of business, and I would be making money again.

 

It's a big step leaving this site, but I think from a financial viewpoint I am never going to make a lot of money here, I'm always going to be paying the silly bills. I think I have to swallow my pride and lose the image, in return for putting some money in my pocket.

 

Thanks once again for all the feedback and viewpoints, it's very much appreciated

 

where exactly will the £12,000 per month reduction come from? How many staff will you be cutting?

[Trev-the-Rev]

I've always believed that when you offer a specialised product, so long as it is well advertised, potential buyers will seek you out wherever you're located. The caveat, however, is the appearance of the premises needs to reflect the quality of the product if you are to instill confidence in the buyer. This doesn't necessarily mean that an up-market, prestigious showroom is required, just a reasonably smart-looking place that will make a favourable first impression.

[Dan]

 

where exactly will the £12,000 per month reduction come from? How many staff will you be cutting?

 

The main difference is rent, rates, electricity, water rates and 3 wages.

The rates are a killer, apparently it goes off the square footage of your buildings. This place is big, the petrol station has a tiny office so the rates are practically zero. The difference is £1800 per month on rates and £3000 a month on the rent.

My electicity here is £900 per month, my water is £450 per month. The rest is the wages and bits and pieces.

[Dan]

GIXXERUK and Trev-the-Rev, thanks lads, that sounds spot on.

[Sarnie]

your in business to maximise your profit

 

Thats the bottom line. Profit. Thats what its all about. Fancy surroundings don't pay the bills. I used to work for a massive broker, swanky offices and facilities etc. i now work out of my spare room and earn more than twice what I used to.

 

[H5]

As long as the place was clean and it looked like you cared about the place, I wouldn't care if it was an old petrol station. Cleanliness and quality of the cars would be what swayed me. It does start coming into it more when you are spending more than, say, £25k on a car. But if the place is smart, freshly painted, and organised, it gives the impression of a well run business.

 

Some of the poshest looking restaurants I've eaten in have served the worst food!

[sinbad]

As long as the place was clean and it looked like you cared about the place, I wouldn't care if it was an old petrol station. Cleanliness and quality of the cars would be what swayed me. It does start coming into it more when you are spending more than, say, £25k on a car. But if the place is smart, freshly painted, and organised, it gives the impression of a well run business.

Some of the poshest looking restaurants I've eaten in have served the worst food!

 

I've always believed that when you offer a specialised product, so long as it is well advertised, potential buyers will seek you out wherever you're located. The caveat, however, is the appearance of the premises needs to reflect the quality of the product if you are to instill confidence in the buyer. This doesn't necessarily mean that an up-market, prestigious showroom is required, just a reasonably smart-looking place that will make a favourable first impression.

 

Got to agree with both of them. I think you know the answer and youve just got to do it...