H861:s aftersales clinch Mem award
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III With Mercedes-Benz's Dealer of the Year award to display, and an expanded territory, thanks to the recent network reorganisation, things are looking good for Lincolnshire-based H&L Garages.
It's been almost 18 months since it took over the former Humberside Motors Mercedes-Benz commercial vehicle operation. That gave it a site in Brough, on the north bank of the river Humber just outside Hull, and a territory that extends up to Whitby.
It now has a branch in Lincoln to add to sites in South Killingholme, Boston and Scunthorpe. But the established sites have not been neglected: South Killingholrne's bodyshop has just gained a £30,000 chassis straightening pit.
So how did H&L scoop the dealer award? Its sales figures undoubtedly helped, says dealer principal Roy Reed: it finds homes for more than r,000 new and used units annually, compared to 5oo to Goo four years ago. "We were above the national average in most sectors of our business, and we've got particularly strong aftersales," he says.
That's reflected in the number of vehicles under repair and maintenance contracts. "The Mercedes rates are competitive, and we're looking after well over 300 units under their agreements," he says. "We have our own contracts too, but their rates are more competitive than ours." As a consequence, the number of vehicles maintained under H&L's own agreements has fallen from roo to around 30. The success of Vito and Sprinter vans has had an impact on the dealership, says Reed. "The first 50 or Go Vitos we sold were to buyers we'd never seen before," he says.
"Atego has been well received— there's a bit of a supply problem, but customers seem willing to wait—and Actros is starling to win friends after a false start."
"We sold 149 in 1998," says Reed. Nowadays it's offering healthy fuel returns, he says, with one operator recently switching from Renault Premiums to Actros because they offered o.75mpg better economy.
Signed up
Reaction to Mercedes' CharterWay's pence-per-km contracts among his customers has been mixed. Nobody has signed up yet, but Reed believes they'll start soon.
H&L was one of the first dealerships to enroll with Mercedes' Signature approved used trucks programme. Reed is happy with its success to date, although it's clearly early days.
While he points to a healthy new van and truck forward orders, he reports that trading conditions are hard. "It's as difficult as it has always been to make money selling new trucks, and it could become more difficult in the future," Reed comments.
The Vehicle Excise Duty rise is prompting a growing number of hauliers to switch away from 4x2s to 6x2s, he says. "We're going to be seeing a lot of used two-axle tractors coming onto the market for silly money," he predicts.