The document summarizes a presentation given by Paul Jackson, General Sales Manager of VW West London, welcoming Megadealer. The presentation provides an overview of VW West London, including key statistics on sales, staff, and finance and insurance (F&I) products. It notes that F&I income represents a significant percentage of total sales profit and that the product mix has shifted to a 50/50 split between finance and insurance sales and income.

1. VW West London
Welcomes Megadealer
Paul Jackson –
General Sales Manager

2. Agenda
• Welcome
• Introduction to Inchcape Group
• Overview of VW West London
• The Role of F&I
– Structure, Volumes, Income
– Impact of Group, Manufacturer & VWFS
– Product mix – PCP, HP, Personal Lease, GAP, CPI, Service
Plans etc
– Customer Retention
– Challenges – CCD, FSA, TCF
© Copyright Megadealer Best Management
F&I In the UK - 2010

3. Inchcape Group
 Global operation
 Retail & Distributor models
 Represent 25 brands in 26 global markets
 Chile & Peru in South America
 127 UK dealers
 23 VW dealers
 Global sales revenues (2009) - £5.6bn
 UK Sales Revenues - £2.1bn
 Global Profit (2009) - £136m
 UK PBT - £46.7m
© Copyright Megadealer Best Management
F&I In the UK - 2010

4. Inchcape Group
 Corporate Growth Drivers
 Vehicle Sales
 Finance & Insurance
© Copyright Megadealer Best Management
F&I In the UK - 2010

5. VW West London
• 455 New Sales per Year
• 550 Used Sales per Year
• Total annual Sales turnover £12.8m
• 65 employees
• 12 within sales team
© Copyright Megadealer Best Management
F&I In the UK - 2010

6. VW West London
Shaun Kirby
Head of Business
Paul Jackson
Glenn Smoker Keith Carvalho Kevin Justice
Gen Sales Accountant
Service Manager Parts Manager
Manager
Paul Jackson Brett Wiggins Nick Lapthorne
New Car Manager Used Car Manager Business Manager
4 x Sales Execs 4 x Sales Execs
© Copyright Megadealer Best Management
F&I In the UK - 2010

7. VW West London
- The Sales Process
Rapport & Positive
Receive & Welcome Agenda
Appraisal
Demonstration/Test Summary &
Presentation
Drive Strategy Meeting
Justification &
Strategy Break Customer Proposal
Negotiation
© Copyright Megadealer Best Management
F&I In the UK - 2010

8. VW West London
- Point of Sale Optimsation
© Copyright Megadealer Best Management
F&I In the UK - 2010

9. VW West London
- Headline F&I Statistics
• F&I Sales Volumes
•Finance Balances £5.7m
• 900 Insurance Products pa
• Sales Penetrations
• 60% New Car Finance Penetration
• 30% Used Car Finance Penetration
• 0.9 Ins products per customer
• F&I Incomes
• £170k Finance Income – POS
• £165k Insurance Income – POS
• £335k Total F&I Income - POS
© Copyright Megadealer Best Management
F&I In the UK - 2010

10. VW West London
- The Role of F&I
© Copyright Megadealer Best Management
F&I In the UK - 2010

11. VW West London
- Finance Product Mix
© Copyright Megadealer Best Management
F&I In the UK - 2010

12. VW West London
- Insurance Product Mix
© Copyright Megadealer Best Management
F&I In the UK - 2010

13. VW West London
- Income
 Key Measures
 IPRU – Income per Retail Unit
 Total F&I Income / Total Retail Sales
 New, Used & Combined
 FPU – Finance Income Per Unit
 New, Used & Combined
 IPU – Insurance Income Per Unit
 New, Used & Combined
 Insurance Sales Per Retail Sale
© Copyright Megadealer Best Management
F&I In the UK - 2010

14. VW West London
- Income
IPRU FPU - New FPU - Used IPU - New IPU - Used Ins/Retail
Q1 2010 £219 £79 £93 £144 £132 0.5
Q2 2010 £360 £101 £124 £153 £198 0.9
Q3 2010 £369 £113 £234 £171 £183 0.8
YTD 2010 £311 £95 £185 £154 £166 0.7
© Copyright Megadealer Best Management
F&I In the UK - 2010

15. VW West London
- Income
© Copyright Megadealer Best Management
F&I In the UK - 2010

16. External Influences
 Group control
 Volkswagen standards
 VWFS
 F&I Reviews etc
 Risk management
 Underwriting (F & I)
 FSA/TCF
© Copyright Megadealer Best Management
F&I In the UK - 2010

17. Challenges
 Introduction of CCD
 Timetable
 FSA oversight & control
 TCF
 Competition Commission Remedies
 CPI
 Direct Lenders
 Supermarkets etc
© Copyright Megadealer Best Management
F&I In the UK - 2010

18. QUESTIONS?....
© Copyright Megadealer Best Management
F&I In the UK - 2010

19. Summary
 F&I Income represents a significant % of total
sales profit
 Product mix has moved from F to I in terms of
sales and income – 50%/50% split in income terms
 Finance & Insurance are central to CRM strategy
© Copyright Megadealer Best Management
F&I In the UK - 2010

20. VW West London
welcomes Megadealer
Paul Jackson –
General Sales Manager