West London Motor Group (WLMG) welcomed Mega Dealer to discuss their finance and insurance (F&I) strategy. WLMG has 12 sites and sells over 4,200 new and 7,800 used vehicles annually, with an annual sales turnover of £89 million including £4.9 million from F&I income. WLMG's F&I strategic approach includes having a business manager introduce F&I products to customers early in the sales process and incentivizing all staff. They negotiate package deals with finance providers that include volume bonuses, dealer commission incentives, and insurance incomes to maximize profits from F&I. External factors like manufacturer standards, regulatory changes, and new competitors pose ongoing challenges to

1. West London Motor Group
Welcomes Mega Dealer
Mohammed Ashraf – Sales Manager

2. 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 Management
F&I In the UK - 2010

3. Our Business
© Copyright Megadealer Best Management
F&I In the UK - 2010

4. Our History
2008 –
2007 – Introduction
Acquires Dan of Kia and
2006 – 3rd Perkins Peugeot
Site at Mill
Hill
2004 – 2nd
Site
1996 - 1st
Site
© Copyright Megadealer Best Management
F&I In the UK - 2010

5. Our Structure
• No ‘Large Group’ structure
• All activity monitored daily by Naeem
• Each site responsible for staff, recruitment, quality
etc
Naeem Hanif
Managing Director
& Owner
Peter Dickey Eddie Freydon
Naeem Hanif
Head of Financial Group F&I
Head of Sales
Control Manager
12 x Site General 12 x Site Business
Managers Managers
© Copyright Megadealer Best Management
F&I In the UK - 2010

6. 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 Management
F&I In the UK - 2010

7. 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 Management
F&I In the UK - 2010

8. 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 Management
F&I In the UK - 2010

9. 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 Management
F&I In the UK - 2010

10. 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 Management
F&I In the UK - 2010

11. 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 Management
F&I In the UK - 2010

12. 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 Management
F&I In the UK - 2010

13. 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

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

15. West London Motor Group
Welcomes Mega Dealer