We’re Seeing a Lot of Growth Online: Pendragon CEO

Your next video will start in

Recommended Videos

  • Info

  • Comments


Aug. 5 (Bloomberg) –- In an exclusive interview, Pendragon CEO Trevor Finn discusses his company’s earnings, what people are buying and the state of the auto market with Caroline Hyde, Manus Cranny and Mark Barton on Bloomberg Television’s “Countdown.” (Source: Bloomberg)

Interview is their ceo.

What are we buying, the brits?

What do we love?

Across-the-board, people are importing new cars.

The car market is running at near record levels.

A lot of that is across the water, from ford to for ari -- to ferrari.

Is there an age group?

What are the young buying versus the old like me?

[laughter] you have got to sell me a car, trevor.

You are buying something that is more fuel-efficient.

We are seeing people, certainly economy-conscious.

They are changing the way they are buying cars.

A lot more people are buying on a payment.

Young and old.

Our ownership is turning into car use.

The way we are buying them, you are big in terms of websites, online purchasing of cars.

Talk to me about the disruption of the car market.

You are a big online player already.

People now with car sharing.

Is this a risk?

There is a lot of noise about car sharing.

The reality of it is not in the u.k. most people him a perhaps from central london, need a car to go to work.

There is a lot of noise around these things.

Fundamentally, there are 7 million used cars sold a year.

And you can buy more online via you.

The online space has changed.

Most people go online, whether it is young or old.

They will be going online, looking at cars, distilling the sentiment out there.

We positioned ourselves and we have seen a lot of growth and a lot of activity on the website.

Talk to me about the phenomena.

I go to the states and see i can pick up a bmw three series on lease.

I come home and i say, how much?

It is phenomenal.

We are adopting leasing as a model.

I think you have not bought a car for a while.

If you go today, you will be hit with a proposition based on what you would describe as a lease.

Today, over 80% of the new fords that we sell will be sold on a monthly basis.

So not actually taking ownership of it.

You look after the whole package.

We have some businesses in america for well over 10 years.

When i first went to the states, i was amazed everyone was not buying a jaguar because it was $400 a month.

Then you realize that you can buy a mercedes for a similar amount as well.

There has been maybe a structural shift at the way people are looking at buying new cars.

There have been some finance offers in the market which make it very attractive to take that finance.

What about the major car manufacturers?

How do you insulate yourselves from the different cycles of the major car manufacturers?

We describe our business as an eight cylinder engine.

Always one piston rising in the engine and another one going down.

Our head is our scale, really.

You represent everything from ford and gm and the volume side to mercedes and bmw.

We pretty much cover everyone.

If you look at a lot the releases we have had from renaultm, peugeot, etc., it is the small, compact model.

This has come through for a lot of the players.

Is that what you are seeing when people come in?

What is the most important thing when they come in to purchase?

How much a month.

That is the most important thing.

Rice, price, price.

Four years ago, for every car sale, you would just -- you would have just over four visits from a customer.

Today, it is 1.3. they want more efficiency and the right price.

Continental carmakers have been slashing prices throughout the years.

What is the price reality here in the u.k.? the u.k. consumer, if you consider this is the only european market that is really on full mode.

The other economies might be in recovery mode.

It is the second-largest in europe.

It is a combination of a little bit of an uptick in confidence in sumer-wise and the market being receptive to moving towards payments.

Interestingly enough, even though we have had a couple of years in recovery mode, there are still more cars in use on brick roads than ever before.

I have one of those.

In terms of regions, are we seeing the house pricing bubble?

Are we seeing the car bubble?

I think it is evenly spread.

Enter london is a very stretched place.

Out there, it is evenly spread and there are no particular patterns with respect to product types.

You mentioned it earlier.

How do we had ourselves against the various rounds?

News from bmw this morning, they are proliferating their engines.

Nobody is just a sports car manufacturer.

Your favorite car?

Personally, i have a jag.

What would you have?

I would be leasing, definitely.

Lex we are going to have to leave it there.

Thank you so much for joining us this morning.

Pendragon is just one of the

This text has been automatically generated. It may not be 100% accurate.


BTV Channel Finder


ZIP is required for U.S. locations

Bloomberg Television in   change