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Fri
Nov 30 2007

A test drive? For a fleet customer? Sorry; computer says no

Julian Rendell

Just how difficult should it be to arrange a test drive before buying a new car? Not as difficult as it is if you happen to be dealing with Hexagon BMW in north-west London, I can tell you.

The Rendell household will change its car next spring, so enthusiastically I filled out the contact form on BMW’s web site to arrange a road test of the new 177bhp, sub-140g/km 520d SE Touring.

A bod from Hexagon rings back keen-as-mustard. But as soon as he discovers the car will be supplied by a lease company, talk of a test drive is off the agenda. Staggering considering that fifty per cent of new cars sold in the UK go to fleets, and I’m guessing that the percentage is much higher in the premium segment.

In some ways I can’t blame the young salesman. He’ll set aside an hour of his time and any sale, along with a commission, is likely to slip through his hands, unless I can persuade the lease company to put the deal through his books.

But dealers are there for other reasons than to fill salesmen’s pockets with commission. What is the point of BMW or any other car-maker having a high profile, nationwide network of dealers if they can’t offer the most basic of services to customers? Surely a test drive is one of those basic services?

BMW’s response to all this is illuminating, too. To keep dealers on their toes, they follow up web requests at the customer service department. When I relate my experience, I’m told to expect a ring back from Hexagon. But there’s only silence. And no further interest from Customer Service.

This is not the first time I’ve been snubbed by a dealer when the dreaded words ‘company car’ are mentioned. A couple of years ago I approached HR Owen for a V70 test drive to replace an Audi A4 lease car and got the same bum’s rush from a bored salesman.

To its credit, HR Owen’s fleet sales team redeemed the situation, although only after I got persistent. And in fact that overnight test drive secured the sale.

Later when I related my experience to cheeses at the Volvo importer they rolled-their-eyes skywards and shook their heads.

The arrival of the new V70 has already sharpened Volvo’s game and now we’re on HR Owen’s database, it’s all we can do to bat-off enthusiastic salesmen.

Car industry experts will tell you that it’s much more difficult and expensive to win new customers than retain existing ones. Now I can see why.

I’d like somebody to tell me what is the justification for assembling a nationwide dealer network, asking entrepreneurs to invest millions of pounds in high-cost facilities, if they then ignore fifty per cent of the UK new car market? Puzzling indeed.

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About Julian Rendell

The man with the legendary contacts book. Once went 'under the wire' to scoop a secret Honda; also navigated a Fiat 127 in a road rally. Says the latter was only marginally more risky.

Comments

Gee1986 November 30, 2007 5:39 PM

Being in Sales I'm not surprised the sales person didn't want to complete a test drive as commission is all important and to do that you need hot leads, sorry but I wouldn't waste my time for 45 mins where I could be dealing with a customer looking to purchase a vehicle that will earn me money. The lease company needs to own a demo for customers to try or the Dealer Network needs to pay for C.C Test drives, so might have some interest then... And name and shaming Hexagon isn't right as I know all sales managers dislike Company car test drives.

James Ruppert November 30, 2007 9:08 PM

I have to agree with both Julian and Gee. It is very frustrating for the potential buyer who can't understand why the dealer isn't interested. Yes they will be wasting their time as there is no guarantee they will get the deal as company cars are sourced from another dealer. It is the responsibility of the fleet manager to sell the employee where to go, but it is probably laziness and the fact that the supplying dealer may be in Scotland when the employee is in Southampton. Best not to admit it's a company purchase then. Not an ideal state of affairs all round and I Julian's incredulity at the whole nationwide set up is fully justified.

Julian Rendell December 3, 2007 9:34 AM

Interesting responses - expert analysis from James and insiders view from Gee. Picking up Gee's point, I think the critical thing here is the gap in expectation between the factory-owned importer and the franchise dealer. And what the factory-owned importer, who spends tens of millions on brand advertising  and such, expects from its franchised dealers. I'd wager that when BMW picks up on this, I'll get the same reaction from cheeses as I did Volvo . James is right, spreading the enormous cost of a nationwide dealer network, across fifty per cent of the market is a burden all car, parts and service buyers have to bear.

James Ruppert December 3, 2007 10:26 AM

Yes Julian I hope that BMW and the rest take note of this. I had exactly the same issue when selling in the early '80s as the qualification questions were, 'is this is a company purchase and if so who is supplying the vehicle, because if it is a lease/contract hire job then it won't be me. So here's a brochure, but I can't help you any further.' It's not good customer relations is it?

Julian Rendell December 3, 2007 10:42 AM

Considering the advances made in technology and car engineering since the 1980s, not to mention the quality of car dealerships, it's interesting to reflect that staff and managements of these glass-and-chrome palaces are still operating with a 25-year old mindset when it comes to customer service. Many times car-making bosses have privately, to me, revealed their despair at the actions of their dealers (no doubt reciprocated by the dealers of their importer bosses!). Comes back to my point that in the noughties car-dealers are not meant to be devices merely for stuffing car salesmen's pockets with commissions. It'll be interesting to see if Infiniti's new dealer network is any better.

David Harrington-Wright December 3, 2007 12:34 PM

When we purhcased a new company Mondeo in July, we had the same problem. However, I dealt with it thus - the local dealer, who had serviced our cars (average 120K in two and half years) for some six years, was approached for a test drive. Met with the response that it was a company lease purchase so they would not help beyond giving out a brochure. I explained that they get all the servicing and warranty work (even tyres on occasions) but they were still not in the least bit bothered.

Surely they could have seen how much we have spent with them = they made far more on this side then any purchase profit. Needless to say the car was purchased, and is not serviced at that dealership.

I even had a letter from them the other day inviting the old car in for its MOT and 140K service!! Strange, but who has lost out here? Not me that is for sure, and not our company either. Whilst Ford are not bothered, the invidual dealer has probably lost about £2K worth of work over the next couple of years!

cw47 December 3, 2007 1:01 PM

I have had recent experience of this situation when looking for a replacement company car.  In fact the BMW (1-series) and Audi (A3) dealers both had specific sales agents for dealing with company car and personal lease plan customers, and I was directed to them by the receptionist.  Both were every helpful - for the A3 test drive I was allowed to take the car home for the night abd bring it back the following morning.  The BMW was a conventional accompanied drive, but the sales exec has phoned me regularly afterwards to see if I have made my choice yet.  Frankly I  was impressed, but it might have been because I used the carrot of the service and repair business to get their interest (I am a 30,000 miles a year driver). Neither of these dealers knew me or my employer prior to these encounters.  

For the other, more mainstream brands (VW, Toyota, Honda) I had a similar experience to David - mentioning that you are not a private buyer is like turning the lights off!

Jon Hardcastle December 3, 2007 2:12 PM

I have had this several times, but in all cases I have told the Lease company that I want to name the dealer from which the car must come. In my experience, as long as the dealer agreed to the lease companies terms, they could supply.

To me, whether my own purchase or a company lease car the buying experience is there to establish a trust and future relationship with the dealer. Having said that, I have always dealt with smaller independant dealers as opposed to larger organisations.

The makes I found most interested were Honda and Skoda. Both could not have done more and both got orders to supply cars.

Julian Rendell December 4, 2007 11:27 AM

Great that this blog has unearthed so many comments, although dispiriting that the general picture mirrors my experience so closely.  cw47's comment fits in with my Volvo experience a few years ago. There's no doubt an overnight test drive can be a clincher. But the BWM dealer left me with the impression that even their fleet team were disinterested unless some sort of link with my lease company could be guaranteed. I'll take this up with BMW customer service at some point, I guess. I remember them suggesting that I try another dealer in my last telecon with them.

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