""The wrong kind of oil can ruin the fuel economy"" - Tony Roberts, Magna

Deciding which oil supplier to sign up with is getting progressively trickier for dealers because of two trends that are well established and becoming more influential in the sector.

One is that cars’ engines and transmissions are becoming more complex as they grow more efficient, and the other is that oil companies have consolidated greatly over the past two decades.

The big groups have become larger and more powerful because of the need to save or share costs as a result of the huge expense of finding reserves and installing equipment to pump it out of the ground.

Tony Roberts, managing director of the Magna Motor Group, said the starting point in making a choice had to be the diversity of lubricants: “Because one size – or rather viscosity – no longer fits all cars, your supplier has to be able to meet the demands of car owners.”

Magna has a lengthy understanding with Elf oils. There is still no formal contract – it’s more a rolling monthly agreement built on mutual trust to ensure car owners are well looked after.

"Some dealers might not find such an informal arrangement to their liking, but Roberts says it works for his company.

“We all have to be so careful now with the choice of oil,” he said.

“The wrong kind can ruin the fuel economy designed into the engine. We’re happy with what Elf provides and that’s probably because it has been a Formula One supplier.”

Roberts feels strongly that the choice of lubricant should extend beyond the workshop.

“It’s essential to be able to sell a litre of the right oil so that the customer is topping up with the right one. Otherwise it’s rather like pouring in a fine wine and topping up with a cheap one.”

Elf has a tie-up with Renault that has lasted more than 40 years. The value of agreements between oil companies and carmakers is based on testing and marketing.

Dealers can benefit from both. Extensive advertising and marketing activity associates the benefits of a particular brand of oil with motorsport, and this adds a touch of glamour to a product that you do not want to buy.

One dealer group executive said: “It is difficult to recruit staff good at selling lubricants. This is not an easy product to sell because, as they do with tyres, owners resent spending the money.

“Many drivers believe all oils are much the same and are acutely aware of prices – they want to spend as little as possible while convincing themselves their cars are protected.”

He said selection of an oil company should in part be based on belief in the value of its national marketing programmes to win loyalty from customers.

“If aftersales staff are given the right training they can demonstrate that it is worth spending a little extra on superior oils.”

Dealers have mixed views over the value of training programmes and other incentives offered by oil companies. Some say the additions to the supply of oil are valuable.

“There is a positive financial element for us in what oil groups provide for dealers in exchange for their loyalty,” said one.

“But new dealers, or others who decide they want to appoint a new supplier, should be careful not to get carried away by the extras.

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