InspectaCar extends its influence

A close-up look at “the home of pre-loved cars”– the only
WesBank and AA endorsed pre-owned motor franchise
Vol 1 No 2
InspectaCar extends
its influence
In the
by Tony Clarke
Managing Director
fast
lane
Four new InspectaCar dealerships have
opened their doors in recent months,
extending the brand’s reach across
South Africa.
InspectaCar grows
AA rewards
2
New dealer in Gezina
4
Good sports
5
The presence in Pretoria and Cape Town
has been strengthened with dealerships
in Gezina and Strand, respectively, and
the increasingly familiar tangerine
signage has made its debut in
Amanzimtoti and Vereeniging.
Look out for dealers opening in the
near future from Tzaneen to George
and Howick to Pinetown, InspectaCar
can now truly claim to be one of the
fastest-growing pre-owned car
brands in South Africa.
Win with Zoom In
Zoom In is offering five lucky readers
the opportunity to win an AA Auto Valet
car-care bucket. The bucket
contains shampoo, car and
tyre polishes, air freshener,
a molten cloth and valet
sponge – all essential items
for maintaining any vehicle!
A new InspectaCar
on the block, this time in Vereeniging (see page 3).
Simply tell us how many InspectaCar
dealerships have opened doors around
the country to date. Email your answer
to coosthuizen@wesbank.co.za.
Entries will be collected for a lucky draw
and winners will be notified by email.
Good luck and happy reading!
The smile says it all!
To share this customer’s
experience of InspectaCar,
turn to page 3.
At the wheel
How do used cars fare
in a new-car market?
The strong economy,
together with high levels of
growth in the used car market going
forward.
Africa, has contributed to the motor
industry achieving record vehicle
WesBank has analysed its book to
determine just how the used car
market is faring in a strong new car
market.
sales. This type of growth was last
seen in the 1980s.
With stagnant inflation on new cars,
the used car industry has been
under pressure to adjust retail
prices. This has resulted in the
narrowing of margins for many used
car dealers. The M&M guide is more
eagerly awaited than ever.
Adjustments to trading prices have
slowed down to between 1% and
1,5%, which will result in a gradual
general manager of the motor
division of WesBank
business and consumer confidence
currently experienced in South
A regular column by Brian Riley,
The used car market in South Africa
is currently sitting at a ratio of 1:1.
Ten years ago the ratio sat at 1: 4
(new to used). The challenges ahead
for the independent used car dealers
include:
• major dealer groups expanding
their businesses into their own
branded used car outlets.
• the need for highly skilled used car
people. This requires an
investment in people that will not
give immediate returns. There is,
unfortunately, no alternative.
• creating a customer awareness of
value in used cars versus new.
• after-sales peace of mind for the
consumer.
Finally, from a WesBank perspective,
how do we create a product to
entice the consumer to purchase a
used car?
Simply, we must work smart, whilst
focusing heavily on pricing and
ageing of stock.
Home of peace of mind motoring
The InspectaCar reward just grew a
whole lot bigger. AA Advantage
membership has been extended to
all customers and with it, further
peace of mind motoring.
The Automobile Association has
offered its highly reputable services
to SA motorists for nearly 70 years
and hundreds of thousands of
CONTACT INSPECTACAR:
Tony Clarke, managing director
tclarke@wesbank.co.za
Glenn Clarke, franchise manager
gclarke1@wesbank.co.za
members enjoy the wide range of
services on offer.
When InspectaCar was founded to
elevate the professionalism of the
used car market, the AA stepped in
to support the concept and endorse
the brand.
Accordingly, InspectaCar buyers
enjoy the assurance of vehicle
quality through a unique AA 101
point vehicle check, a roadworthy
certificate and membership to SA’s
premier motoring organisation.
AA Advantage membership
includes:
Chantelle Oosthuizen, communications manager
coosthuizen@wesbank.co.za
CONTACT DETAILS:
Tel:
011 509 7000
Fax:
011 326 4621
Physical address:
Second floor
WesBank House
196 Hendrik Verwoerd Drive
Randburg
Postal address:
2
Box 50611
Randburg
2125
Emergency rescue
services
• 24-Hour AA Mayday emergency
medical rescue*
• Emergency home assistance*
• AA Road Patrol roadside security
service
• AA battery service including
mobile battery sales
• Limited key lockout service
• AA recovery towing service
(electrical and mechanical
breakdowns)
• Flat tyre change
• Message relay service
• Fuel to reach a filling station
* These services are available over
and above the five emergency
roadside assistances
Value-added services
• Motor-related legal services
• Telephonic technical advice
• AA test and drive technical and
roadworthy tests
• AA travel - services and products
• Road information
• Maps, atlases and accommodation
guides
• Referral to AA quality assured
repairers
• AA autocheck.
InspectaCar buyers and AA
members also benefit from the AA’s
‘show your card and save’
programme that gives instant
cashback rewards.
Rising InspectaStars Rising InspectaStars Lou on the high road with InspectaCar
The team at Hansie
Roodt Vereeniging
(from left): Freddie
Putter (sales executive),
Anthony Hawkins
(manager InspectaCar),
Johan Jacobs (business
manager), Thys Botha
(sales executive) and
Elize Aucamp
(sales executive).
After 25 years of prominence in
the Vaal Triangle business community,
the Hansie Roodt group has made its
InspectaCar debut with Lou Roodt
transforming a section of his Hansie
Roodt Vereeniging dealership network
into a tangerine and blue landmark.
The 2 000 square metre dealership is
staffed by a team of 11, including four
sales executives.
Already there has been an increase in
floor traffic, says Lou. “We pride
ourselves on offering a good deal and
true value for money.”
the AA membership that goes with
every used car, we offer a 24-hour
emergency service, wheel alignment
and engine flush.
Having come from a motor business
family, Lou understands what is
important to his customers and tailors
his services accordingly. “Apart from
Communication with customers is
paramount, he adds. A monthly
followup call is made to each
customer to ensure continued
satisfaction, and customers servicing
their cars with the dealership receive
an sms reminder of their appointment, assistance with car collection
and delivery, and a courtesy car.
"We place great emphasis on
customer comfort and it has paid
dividends for us."
Another Oscar-winning performance from Benoni
Every car polished to a
glow at InspectaCar
Benoni.
One would be hard put to find
someone more passionate about his
career than Yusuf Ebrahim of
InspectaCar Benoni. Listening to Yusuf
talk, one gets the impression that he
feels a hint of sadness every time one
of his beloved cars leaves the
showroom for a new home. And that
happens between 40 and 45 times a
month.
Yusuf and his partner Mohammed
Rahman are “lifelong car fanatics”
whose love of all things motoring
brought them together, Yusuf from a
travel background and Mohammed
from the food retail sector. “We
opened shop in November 1997, with
just three cars and three staff
members,” says Yusuf. “Six years later,
we became part of the InspectaCar
family because we wanted to associate
ourselves with a national brand and
enjoy the credibility that the AA and
WesBank associations would give.”
The InspectaCar reputation,
underpinned by the dealership’s
philosophy of good, old fashioned,
honest dealings, has ensured its
Tshepo Tshabalala’s family has bought two cars from
InspectaCar Benoni this year. Here Tshepo (left)
prepares to drive away in his pre-loved BMW, sold to
him by Robert Kubeka.
continued success. “We believe that
buying a pre-owned car need not
compromise the customer’s good
taste. Our cars are as good as new
ones.
“We follow an extremely stringent
selection process. Every car is given a
valet and autoglazed, and we spare no
expense in reconditioning. Our cars
are our passion and the large number
of repeat customers is testament to
the success of our approach.”
Yusuf has this advice for prospective
dealers: “Make a concerted effort to
give each customer a new car service
experience. Let profit-taking take a
back seat to customer service and
watch the
business,
and the
industry as
a whole,
flourish.”
❝
If ever I need to buy another used vehicle,
it will be only from InspectaCar. The service
was unbelievable and very professional. The
experience was great and I will not hesitate to
refer potential buyers to InspectaCar. Both my
previous vehicles were bought new and the
service from those dealers was not close to
InspectaCar’s. Everything went perfectly, from
the first phone call to the delivery. We need
more companies like this in South Africa.
❝
The dealership has pride of position in
the heart of the Benoni city centre
and stocks up to 80 vehicles in its 1 400
square metre showroom.
Tshepo Tshabalala
3
Chris Brenkman (blue
shirt) with (from left)
salespeople Pieter
Conradie and Errol Holm,
cleric Elizabeth Thlaka,
and drivers John Msiza
and Walter Malau.
Chris’s wife Kobie
handles the
administration.
Chris Brenkman obviously hit
on a good idea when he opened his
dealership Auto Strada in HF Verwoerd
Drive, Gezina in 1987. It was the only
used car dealership in the street.
In 2004, he started noticing
InspectaCar and liked the concept.
❝
I saw the Pajero when passing the
showroom and fell in love with it,” says
InspectaCar Gezina customer Wimpie
Shuld. “My wife said the colour was right,
so that was that! I traded in my Nissan
Primera, arranged the finance and the sale
was closed. I didn’t even test drive the car
- the AA 101-point check displayed on the
window was enough for me.“
Sales have been positive, he says.
“The majority of our customers
are affluent and the cars sold to
date are mostly 2001 and 2002
models.
Wimpie is impressed by the relaxing
atmosphere and open and inviting
premises, as well as the people. “The
salespeople are very professional and went
out of their way for me, sorting out the
odds and ends with no hassle. If this is the
InspectaCar standard, I can see the group
going only from strength to strength.
t
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g
i
Br
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a
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s
As a teenager, the wild American
guitarist Ted Nugent had an
unusual hobby: slipping his car
into neutral and ‘driving’ with his
arm through the window – while
lying on the bonnet. On occasion,
he would get up and dance on the
bonnet while cruising down the
highway. “No one,” he later
recalled, “would drive with me.”
“One thing led to another and we
opened our doors under the
InspectaCar banner in
December 2004.
“Our aim is to provide high-quality
cars at market-related prices and
have satisfied customers who will
provide repeat business.”
❝
4
“Now it is ‘motortown’, with about
50 dealers operating,” he says.
Relaxed, happy and heading for
Sudwana Bay in his new preloved Mitsubishi Pajero is
Wimpie Shuld of Annlin,
Pretoria. “It’s the most beautiful
car on the road,” he says.
“We have had a very good
response from customers. The
InspectaCar link has gone down
well as it is a brand that is proving
very successful. We have a smart,
corporate image and a pleasant
environment. I am confident that
this will be well worth the
investment.”
Daan and Elma Chinner of Mountainview, Pretoria, took to the wheel of a
racy red InspectaCar Mazda MX5 earlier
this year and have been enjoying the
ride of their lives ever since.
❝
When I saw the car as I drove past,
I told the family that I would buy it, but
I was only joking,” says Daan. “A couple
of days later I came in and took it for a
drive. The deal was closed that day.
“InspectaCar’s service was really first
class, both before and after the sale.
There was a slight scratch on the
bodywork and it was sorted out
immediately.
❝
Rising InspectaStars Rising InspectaStars InspectaCar on the motortown map
A good deal well done, according
to Mazda buyer Daan Chinner,
seen here with dealer principal
Chris Brenkman.
sports•Good sports•Good sports•Good spo
InspectaCar Queenstown
on the ball with
rugby sponsorship
Selling cars is not InspectaCar Queenstown’s only
claim to fame. It also sponsors the local schools
rugby team from Queens College, gaining
tremendous exposure at matches for the brand and
its vehicles.
No strangers to the tryline, the team is currently ninth
on the South African schools rankings list.
Says the dealership’s Paul Coetzee: “It’s very exciting.
We display cars and banners at all matches. At the last
match, there was a crowd of 3 000 – awesome for such
a small town – and many thought our cars were brand
new. We are looking forward to the television coverage
of three of the games later this year, which will take
the InspectaCar brand into homes countrywide.”
sports•Good sports•Good sports•Good spo
THE INSPECTACAR ADVANTAGE
InspectaCar boasts several competitive edges that set it apart in the
used car market and ensure customer satisfaction.
•
•
•
•
•
•
•
•
•
•
Only franchised dealer network with AA and WesBank endorsements.
Unique AA 101-point mechanical check.
AA roadworthy.
Free AA membership for all buyers.
Total peace of mind motoring.
Premium quality stock is displayed – no models older than seven
years or with mileage over 150 000km.
A national franchised network.
Online vehicle search facility.
Online vehicle finance approval.
Responsible corporate
citizen, reflected in the
49,9% share held by
black-owned and
-managed Peu
Investment
Group.
The InspectaCar livery may be just a
blur as Rob Bygrave throws his
Porsche 944 into the bends of South
Africa’s racetracks, but it creates a
great impact between races. And
Rob, dealer principal of InspectaCar
Fourways, makes sure the brand is
kept where it belongs – he took top
honours in the 2004 Porsche
Challenge.
5
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Following the success of the Durban
InspectaCar franchise, Mike Cooke has
taken his considerable motor industry
experience southwards, opening a
dealership in Amanzimtoti.
InspectaCar ‘Toti enjoys a prominent
position in the main street and stocks a
variety of cars from entry level to
executive brands.
Says Mike: “I have been in the motor
industry since 1991, first with Toyota and
then VW, but I always wanted my own
pre-owned dealership. The run-of-themill used car shop did not appeal to me,
so I was delighted when InspectaCar
came along, with its AA and WesBank
associations.”
In Durban, the business has grown
steadily, with more than 70% of sales
being repeat business and referrals.
6
Now Mike and his wife Kelly plan to
extend all the successful elements of
the Durban business to ’Toti. These
include a computer system
containing all the customer’s details
and interests, and generating emails
and sms notices that continue for
five years after the sale. “Customers
receive licence renewal reminders,
birthday wishes, service reminders
and news on InspectaCar,” says Mike.
“These are the kind of touches that
make all the difference in a
competitive market.”
Elvis Presley was a car enthusiast,
as one would expect an American
hero to be. Cadillacs were his
preference – he owned about 100
during his lifetime. But in the ‘70s,
the talk among car buffs was of a
sleek, Italian-made sportscar called
the Pantera and Presley bought
one. One day when he fancied a
spin, the car would not start. He
took out a gun and shot it, twice,
possibly three times.
* The Pantera’s creator Alejandro de Tomaso
later explained that the car, like many
European prima donnas, could be
temperamental and should be treated with
kindness and patience.
Benchmarking your performance
In this issue of Zoom In we show the
fourth quarter benchmarks for 2004 to
enable you to track the trends.
The benchmarks for the fourth quarter
of 2004 show that profitability,
measured by profit before tax as a % of
sales at 2,98%, is marginally better than
in the third quarter.
Explanatory notes:
1. and 2. Sales are the sum of all
turnover related to the sale of used
vehicles.
3. The sum of first gross, accessory
gross and wholesale gross as a
percentage of the sum of all sales.
4. The total gross profit divided by
the number of units retailed.
5. Sales commissions divided by the
number of units retailed.
6. Pretax profit as a percentage of sales.
7. The sum of all expenses incurred
By John Templeton
of Sewells
Benchmarks
Third
Fourth
Your
quarter 2004 quarter 2004 result
Notes
Jul - Sep
Oct - Dec
Reconditioning costs % of sales
1
1,64%
1,51%
Over-allowance % of sales
2
1,34%
1,56%
Total used gross profit % of sales
3
7,48%
10,29%
Average gross profit/unit retailed
4
R9 772
R9 708
Sales commission/unit retailed
5
R962
R1 008
Profit before tax % of sales
6
2,92%
2,98%
Total expenses % of total gross profit
7
52,56%
48,58%
Average monthly gross profit
per salesperson
8
R75 204
R77 137
9
R25 415
R20 230
Average monthly profit before
tax per salesperson
after gross profit as a percentage of
total gross profit. This ratio shows
your spend of each rand of gross
WAXING LYRICAL
Benchmarking is a tool for comparing
your performance with that of other
operators in the industry. This allows
you to ‘rate’ yourself. Are you above,
equal to or below the benchmark?
Behind the benchmark result is an
excellent business process, set of
policies or controls. How do you rate?
Are your business practices happy-golucky or have they been carefully
thought through and implemented
with precision?
PART 2
profit earned.
8. and 9. An indication of the
productivity of the salesteam.
A vehicle’s colour is one of the primary attractions to a buyer. It makes sense, therefore, to
take care of the paintwork, not just for its aesthetic appeal but to maximise resale value.
Check the condition of the paintwork before treating. Look not only for any scratches, deep
or small, or dents caused by loose stones, but for the effectiveness of the protection/
preservation treatment. Do this by pouring some water over the paintwork. Small, round
droplets indicate that the paintwork is still sufficiently protected and paintwork treatment
is not necessary unless there is damage. Larger water surfaces means there is no longer a
protective coating. A treatment with car wax will protect the paintwork for several weeks.
Dull and weathered paintwork calls for a polish and paintwork cleaner.
Visit your nearest AA Autoshop for a variety of branded car-care products.
New online
It’s vibrant, visually appealing and full
of vital information. If you haven’t
yet visited the new-look InspectaCar
website, you’re missing out.
New features have been added to
enhance the site’s role in the
marketing mix and customer service
drive. Particularly exciting is the
vehicle search, which allows visitors
to search for a specific vehicle at the
touch of a key. Home page flashes
highlight special deals, whilst a
virtual showroom reveals the full
InspectaCar range.
Visit www.inspectacar.co.za now for
a new perspective on the
InspectaCar offering.
7
INSPECTACAR DEALERS
Dealership
Physical address
Telephone no.
Fax no.
Prima Motors 1
Wonderboom South
949 Voortrekkers Road
Wonderboom South
Pretoria
(012) 335 5526
(012) 335 5527
(012) 335 1831
Prima Motors 2
Mayville
676 Voortrekkers Road
Mayville, Pretoria
(012) 335 5526
(012) 335 5527
(012) 335 1958
Prima Motors 3
Menlyn
271 Bali Avenue
Menlyn, Pretoria
(012) 361 6420
(012) 361 7384
Auto Strada
Cnr HF Verwoerd and Adcock Street
Gezina, Pretoria
(012) 329 0474
(012) 809 1568
Pretoria North
243 Ben Viljoen Street
Pretoria North
(012) 546 3054
(012) 565 6706
Centurion
Cnr John Vorster and Oak Street
Highveld, Centurion
(012) 665 2244
(012) 665 2255
Fourways
Cnr Cedar Road and Uranium Street
Fourways
(011) 465 1900
(011) 465 7908
Randburg
211 Hendrik Verwoerd Drive
Randburg
(011) 787 8727
(011) 787 8738
Constantia
93 William Nicol Road
Constantia, Roodepoort
(011) 858 4200
(011) 858 4100
Morgan Motors
620 Kudu Avenue
Allensnek
(011) 675 1119
(011) 675 1119
(011) 472 7010
Edenvale
117 Van Riebeeck Avenue
Edenvale
(011) 609 1000
(011) 609 1100
Springs
19 4th Avenue
Geduld, Springs
(011) 811 1490/1/2
(011) 811 5074
Steering Auto
30 Ampthill Avenue
Benoni
(011) 422 6652/3/4/5
(011) 422 6703
Vereeniging
Hansie Roodt
Cnr Leslie Street and Grey Avenue
Vereeniging
(016) 420 1000
(016) 455 4545
Durban
31 Prince Alfred Street
Durban
(031) 332 2177
(031) 332 2179
Amanzimtoti
394 Kingsway Road
Amanzimtoti
(031) 903 8300
(031) 903 8330
Pietermaritzburg
302 Berg Street
Pietermaritzburg
(033) 392 8500
(033) 392 8510
157 Cathcart Street
Queenstown
(045) 839 7194
(045) 838 2327
180 Main Road
Strand
(021) 854 8864
(021) 854 8866
88 Market Street
Polokwane
(015) 297 8099
(015) 297 8199
(015) 297 3227
GAUTENG
KWAZULU-NATAL
EASTERN CAPE
Queenstown
WESTERN CAPE
Helderberg Rola
Motor Group
LIMPOPO
Polokwane
Customer helpline:
0860 371 371
One for the road
“My definition of a redundancy is an
airbag in a politician’s car”
Actor Larry Hagman
8
Website:
www.inspectacar.co.za