Car dealer Pendragon profit warning as consumer demand wanes

Car dealer Pendragon profit warning as consumer demand wanes

Author
Discussion

The_Open_Road

Original Poster:

13 posts

28 months

Monday 23rd October 2017
quotequote all
Pendragon has warned on full-year profit, blaming a decline in demand for new cars and the consequent price correction in the used car market.

http://www.telegraph.co.uk/business/2017/10/23/car...

RDMcG

13,926 posts

155 months

Wednesday 25th October 2017
quotequote all
Lots of stuff coming off lease. Might be a fair dip

ElectricPics

758 posts

29 months

Sunday 29th October 2017
quotequote all
Their astonishingly appalling reputation can't have helped.

jamoor

10,446 posts

163 months

Sunday 29th October 2017
quotequote all
This is just the beginning of their troubles.

Good and bad times ahead for the car industry

gizlaroc

13,200 posts

172 months

Wednesday 1st November 2017
quotequote all
ElectricPics said:
Their astonishingly appalling reputation can't have helped.
Agreed, Evans Halshaw and Stratstone are becoming like Big Motoring World and Motorpoint dealerships in regards to 'ones to avoid'.

Wish

689 posts

197 months

Thursday 2nd November 2017
quotequote all
gizlaroc said:
ElectricPics said:
Their astonishingly appalling reputation can't have helped.
Agreed, Evans Halshaw and Stratstone are becoming like Big Motoring World and Motorpoint dealerships in regards to 'ones to avoid'.
I totally agree. I’m suprised Pendragon are still going. They had a terrible name in the trade years ago.

Now when looking for a car if it turns out to be at a stratsone dealer I don’t even bother to read the ad.

Turn7

16,511 posts

169 months

Thursday 2nd November 2017
quotequote all
Pendragon have been on the brink for years, Im stunned they are still still trading.

RDMcG

13,926 posts

155 months

Thursday 2nd November 2017
quotequote all
http://www.telegraph.co.uk/business/2017/11/02/new...

Still...there may be something to it.

Fermit The Krog and Sexy Sarah

7,459 posts

48 months

Thursday 2nd November 2017
quotequote all
gizlaroc said:
ElectricPics said:
Their astonishingly appalling reputation can't have helped.
Agreed, Evans Halshaw and Stratstone are becoming like Big Motoring World and Motorpoint dealerships in regards to 'ones to avoid'.
And I third. I had the misfortune of working for them (Stratstone) for 6 months 8 years ago, selling Volvo. I'll say initially that car selling is not for me, even though I have had a very successful sales background, so it not working out is nothing to do with them - this said, the induction/training I received was worse than any other job I've had.

I would not trust them an inch, the dealership I worked at was more wideboy than Derek Trotter.

A prime example; there was a P/X Avensis needing to be cleared on the cheap. The DP marked it up by a shocking (read greedy, I recall £3000, when bought for a 3 figure P/X) amount. An old dear, probably in her 70's came in, she really liked it, said she wanted it, and that she'd be saving for ages for a new car. The thing is the car was a dog. There was more white smoke coming from it than one of Jimmy Saviles cigars, the head gasket was about to go.
I said to him how can you sell that car to her, it's a piece of crap. He simply replied 'well we best just hope it gets past 90 days' (the warranty)

A second example. During my time there my mums sister died very suddenly, out of the blue, so I needed a day off for the funeral. Wrapping up work the evening before the DP said something along the lines of 'we can get back on this tomorrow', to which I advised I was not in, Aunts funeral. A normal person would say something like, 'oh I'm sorry to hear that, I'll sort it, don't worry'. His only words were 'have you filled in a holiday form'. I replied 'are you fking stting me right now?!'

I could cite many many more examples. A hateful company.



Edited by Fermit The Krog and Sexy Sarah on Thursday 2nd November 20:59

Andy-H

2 posts

155 months

Monday 13th November 2017
quotequote all
I've got news for you all, most of the main Pendragon protagonists now sit in Inchcape seats.

Will the manufacturers ever learn.............perhaps when the market has been destroyed.

vwfanatico

42 posts

122 months

Monday 20th November 2017
quotequote all
Fermit The Krog and Sexy Sarah said:
gizlaroc said:
ElectricPics said:
Their astonishingly appalling reputation can't have helped.
Agreed, Evans Halshaw and Stratstone are becoming like Big Motoring World and Motorpoint dealerships in regards to 'ones to avoid'.
And I third. I had the misfortune of working for them (Stratstone) for 6 months 8 years ago, selling Volvo. I'll say initially that car selling is not for me, even though I have had a very successful sales background, so it not working out is nothing to do with them - this said, the induction/training I received was worse than any other job I've had.

I would not trust them an inch, the dealership I worked at was more wideboy than Derek Trotter.

A prime example; there was a P/X Avensis needing to be cleared on the cheap. The DP marked it up by a shocking (read greedy, I recall £3000, when bought for a 3 figure P/X) amount. An old dear, probably in her 70's came in, she really liked it, said she wanted it, and that she'd be saving for ages for a new car. The thing is the car was a dog. There was more white smoke coming from it than one of Jimmy Saviles cigars, the head gasket was about to go.
I said to him how can you sell that car to her, it's a piece of crap. He simply replied 'well we best just hope it gets past 90 days' (the warranty)

A second example. During my time there my mums sister died very suddenly, out of the blue, so I needed a day off for the funeral. Wrapping up work the evening before the DP said something along the lines of 'we can get back on this tomorrow', to which I advised I was not in, Aunts funeral. A normal person would say something like, 'oh I'm sorry to hear that, I'll sort it, don't worry'. His only words were 'have you filled in a holiday form'. I replied 'are you fking stting me right now?!'

I could cite many many more examples. A hateful company.



Edited by Fermit The Krog and Sexy Sarah on Thursday 2nd November 20:59
I have very similar storied from when I worked for Pendragon in the late nineties.

best was a salesman who would add TUP to all his order forms as agreed by the DP. This normally cost £200 or £300 and the TUP stood for Tuck Up Pack. Most customers didn't even notice as the salesman would constantly distract them.

Dispicable

Vitaly789

10 posts

24 months

Sunday 24th December 2017
quotequote all
I worked for Pendragon for about 3 years. And still have friends who have climbed through the ranks and all say the same thing. They have been making very questionable decision in regards to day to day operations and its having a knock on effect on the basic principle of selling cars.

I think the company has lost its way. Considering in 2008-2009 they pionered the way forward with every day low pricing strategy amd recovered very well from the recession where they were on the brink of closing


Sheepshanks

18,605 posts

67 months

Monday 9th September
quotequote all
More problems: https://www.cityam.com/pendragon-called-on-restruc...

New CEO only stayed 3 months.

Big Robbo

275 posts

94 months

Wednesday 18th September
quotequote all
You would think manufacturers would want a dealer network that works as it should. I think multi franchise groups are on their way out, people want to feel valued, something that smaller dealerships seem to understand. You could add Marshall s to the list of shame

jamoor

10,446 posts

163 months

Wednesday 18th September
quotequote all
Big Robbo said:
You would think manufacturers would want a dealer network that works as it should. I think multi franchise groups are on their way out, people want to feel valued, something that smaller dealerships seem to understand. You could add Marshall s to the list of shame
The only way to have a dealer network that works is to own it.

I think the future of car retail is most likely direct to retail rather than through middle men that don't add value

poolsman

15 posts

23 months

Saturday 28th September
quotequote all
And now the axe falls on the majority of Car Store outlets, with Brexit uncertainty cited as affecting customer confidence. Nothing to do with poor service, uncompetitive pricing wrapped up in buy now pay much later PCP and the overall attitude that the consumer is a mug whose pockets should be dipped at every opportunity.

cardigankid

7,671 posts

160 months

Tuesday 19th November
quotequote all
jamoor said:
The only way to have a dealer network that works is to own it.

I think the future of car retail is most likely direct to retail rather than through middle men that don't add value
If you now have a high quality but not too specialist consumer product which isn't going to cause trouble in the warranty period, and you have a support structure that can handle recall, marque trained servicing, change tyres etc. then it makes sense, because all the big manufacturers are under cost pressure, and their biggest single cost is the dealer mark up. The increasing use of leasing is taking them in that direction, because the car can come direct from the manufacturer. At the end of the lease, it is the finance company which now tries to sell you your new car, not the dealer.

They can run experience centres, give you a nice day out for the family, and sell you cars on that basis. What manufacturers can't do, in my experience, is run a dealership. However bad you think Pendragon is. And at the high end of the market, the customer needs a point of contact and enhanced service which the factory can't give him.


Edited by cardigankid on Tuesday 19th November 12:40

jamoor

10,446 posts

163 months

Tuesday 19th November
quotequote all
cardigankid said:
jamoor said:
The only way to have a dealer network that works is to own it.

I think the future of car retail is most likely direct to retail rather than through middle men that don't add value
If you now have a high quality but not too specialist consumer product which isn't going to cause trouble in the warranty period, and you have a support structure that can handle recall, marque trained servicing, change tyres etc. then it makes sense, because all the big manufacturers are under cost pressure, and their biggest single cost is the dealer mark up. The increasing use of leasing is taking them in that direction, because the car can come direct from the manufacturer. At the end of the lease, it is the finance company which now tries to sell you your new car, not the dealer.

They can run experience centres, give you a nice day out for the family, and sell you cars on that basis. What manufacturers can't do, in my experience, is run a dealership. However bad you think Pendragon is. And at the high end of the market, the customer needs a point of contact and enhanced service which the factory can't give him.


Edited by cardigankid on Tuesday 19th November 12:40
At the high end which is a fraction of the market. At the mass market people want 0 hassle which is exactly what direct to retail is.

Keyar

1 posts

1 month

Thursday 21st November
quotequote all
I think this is just the beginning, closing 22 Car Stores following 188% H1 profit decline is a big figure.

Maybe I should just go and check my travel checklist and lets just see what will pendragon become in the near future.

Edited by Keyar on Monday 2nd December 12:59