CAR DEALER CLINIC: TOP TIPS FROM SUPPLIERS YOU SHOULD BE WORKING WITH
Issue 139 | October 2019 | CarDealerMag.co.uk | £5
FRANKFURT SPECIAL ISSUE
F O S R A T S THE SHOW RMANY IN PLUS: OUR EPIC DRIVE TO GE ONDAS H A PAIR OF HEAD-TURNING
BIG STORY
TORRID TIMES FOR ASTON MARTIN
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HEAD OF DESIGN Graeme Windell
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Welcome.
WELL, here we are in October! Strictly’s back on our screens and the Christmas cards are in the shops. At Car Dealer Magazine, we’re in the middle of our busiest time of the year. By the time you read this, Car Dealer Power will just be a day or two away, while shortly after that our Bangers4Ben teams will be heading across the Channel for our annual fundraising rally in aid of the automotive charity. A little later in the month, our second annual go-karting challenge will be in full swing and the Used Car Awards won’t be far behind. Phew! Not a bad calendar of events there and hopefully you’re going to be involved in at least one of them. Talking of the Used Car Awards, have you entered yet? It’s the eighth time we’ve staged the ceremony and this year’s looks set to be the biggest and best yet. I’ve had various tasks to perform for the awards at The Brewery over the years. Last year, my job was to interview the winners after they had collected their trophies, and talking to our newly crowned champions was a real pleasure. As you can imagine, everyone was in a fantastic mood after having picked up a gong, and as they walked down the flight of stairs from the stage to the interview/video room where I was waiting to greet them, you could tell they were over the moon. It could be YOU picking up a trophy this year – so please don’t think the awards are the preserve of other dealers. On page 18, we talk to Scott Sibley from Redgate Lodge in Newcastle upon Tyne. His dealership picked up two accolades last year and he’s entering again for 2019. Good luck to Redgate Lodge and all our entrants this year. It really could be you!
FRANKFURT FROLICS YOU can probably tell by the cover that we feature one of the year’s main motor shows within the pages of this edition of the magazine. Our man in Frankfurt was Darren Cassey and you can read his coverage from pages 20-27. There are signs that some manufacturers don’t attach the same level of importance to these shows as perhaps they once did, with some major carmakers deciding not to get involved. Nevertheless, there was still plenty to talk about, with the familiar themes of autonomy and electrification to the fore. The two biggest reveals were the new Land Rover Defender and Volkswagen’s ID.3 – but as Jack Evans notes on page 22, apart from those, the show halls were mainly populated by cars we’d either already seen or outlandish concepts that’ll never grace our roads. NEW FACES EAGLE-EYED readers will notice a little bit of a shakeup in our ‘people panel’ on the left. I seem to be at the top (although I’ve no idea why!) and we welcome a new member of the team – account manager Dion O’Brien. Events manager Amanda Philp is also included now. As I indicated at the start of this piece, our fantastic events help to set us apart from other publications and are increasing in importance and popularity every year. Right, I’d better get back to preparing for the Car Dealer Power awards. No rest for the wicked! Enjoy the issue.
Dave Brown Production Editor CarDealerMag.co.uk | 03
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Jaguar XE SV Project 8 Touring This extremely limited-run power saloon downplays certain elements but definitely not its performance, as Jack Evans found out A round-up of news from across the nation
ISSUE 139 I OCTOBER 2019
Dashboard. Big Story: Aston Martin Around the UK JCB Group’s 20th anniversary Go-Karting Challenge Big Motoring World jobs boost Used Car Awards 2019 Big Mike Feedback Around the World Finance
06 10 12 14 17 18 29 30 32 34
Features. Frankfurt Motor Show Best warranty providers
Data File. The Statistics Fully Loaded Aftermarket Car Dealer Club Auctions Taking Stock Market Insight
Forecourt. Jaguar XE SV Project 8 Touring Mazda CX-30
38 41
Suppliers Guide Long-termers James Baggott
20 47 58 60 64 66 68 69 73 76 79 82
Want a chance of go-karting glory?
We check out the finest metal on show at Frankfurt
Our events... As voted for by you, Car Dealer Power is unique. This year’s winners are revealed on September 26, with a full report and pics in Car Dealer issue 140.
The Car Dealer Used Car Awards, sponsored by Black Horse, celebrate the used car industry. Get involved and you could be a winner! Turn to page 18.
Car Dealer’s automotive trade expo features the Live Stage, workshops and much more. The 2019 event took place at Farnborough – and we’re returning there on April 28, 2020! CarDealerMag.co.uk | 05
Dashboard. MINI
Factory to close for two days in event of no deal
MINI will close its Oxford factory for two days should a no-deal Brexit happen at the end of October, one of its bosses has said. It remains possible that the UK could leave the European Union without an agreement on October 31 – despite a new law passing through Parliament blocking such a scenario – which would result in the BMWowned car manufacturer halting production at Cowley temporarily and the workers not being paid for the duration. The firm cited ‘logistical issues’ as its reason for the possible closure. Speaking to The Times at the Frankfurt Motor Show, Nicolas Peter, BMW chief financial officer, said: ‘Let us assume no-deal Brexit; it has been decided we shut down Oxford [on] October 31 and November 1 to avoid logistics issues.’ The firm is due to begin producing its first massmarket electric car – the Mini Electric – in November.
THE BIG STORY
Aston Martin looks to have the last laugh Luxury marque has been having a tough time on stock market but boss Andy Palmer is determined to prove doubters wrong.
‘Gentleman and legend’ motor group founder John Mulholland dies at 55 JOHN Mulholland – the founder and boss of the Northern Ireland motor group that bears his name – has died from kidney cancer at the age of 55. Established more than 30 years ago and with showrooms in Randalstown and Campsie, the successful firm scooped Skoda UK’s top retailer award for the third year last year. Mulholland, who had fought against the disease for 14 months and passed away on August 17, was also a renowned rally racer. John Mulholland Motors posted a tribute to him on its Facebook page, saying: ‘He turned his Matchbox cars into a real-life, award-winning, thriving car showroom, which he filled with love, energy and enthusiasm. 06 | CarDealerMag.co.uk
‘He rallied most of the roads in Ireland and further afield. He applied perfectionism and professionalism to everything he did yet somehow managed to have more fun than anyone. Most importantly, he was a father and husband. Everything he did, every deal he made, every late hour spent at work was for his family who are now completely heartbroken. ‘He thrived on bringing the best out in people, always rooting for the underdog and developing people to be the best versions of themselves. ‘John lived by the mantra of “support those who support you” and the
Mulholland family would like to thank everyone that has supported them in the past 14 months, be it through well wishes, prayers or with his allegiance to Friends of the Cancer Centre. A gentleman. A husband. A father. May he rest in peace.’ The British Rally Championship paid tribute, saying: ‘A gentleman and a legend. We are saddened at the loss of John Mulholland, a massive supporter of the BRC and rallying as a whole. Our thoughts are with the Mulholland family at this difficult time.’ He is survived by his wife and their four children.
What were the best-selling new cars in August?
Top 10, p10
I
t’s providing no fewer than three cars for the next Bond movie No Time To Die – a film franchise it’s been linked to for more than 50 years – and is an icon of the British automotive industry. It’s converted a former RAF base in south Wales into a state-of-the-art manufacturing complex for its luxury sports utility vehicle and revealed last year that it would work on its electrified powertrains there too. So when Aston Martin joined the stock market last October, it seemed a foregone conclusion that the luxury car maker would be the darling of the share-trading world. The first pre-production versions of the DBX started rolling off the assembly line at St Athan in June this year and everything seemed rosy. However, just a few weeks later the company issued a profit warning and said it was cutting production levels. Having opened at £19 a share last October, in what was widely regarded as the most keenly anticipated flotation of 2018, the stock began heading south straightaway. Investor confidence was damaged even further when Aston Martin’s stock entered ‘junk’ territory in ratings compiled by investment experts Moody’s. The company blamed the ‘more challenging global economy’ when it revealed at the end of July that it had swung to a £78.8m pre-tax loss in the first half of the year against a £20.8m profit for January to June 2018. News of the out-of-the-blue drop in demand from dealers panicked investors, and led to its share price plummeting by 26 per cent in one day, meaning that by the end of this July it was less than half its initial value. It wasn’t too surprising then when, in an interview with The Detroit Bureau towards the end of August,
‘We rely on selling cars today to fund the development of cars for the future.’ Andy Palmer Aston Martin Lagonda president and group chief executive Andy Palmer described those choppy waters as ‘some of the most difficult weeks of my career’, adding: ‘Nobody likes to hear their child being called ugly.’ But the 56-year-old’s message
is clear: Aston Martin is going to prove to the naysayers that it knows what it’s doing. ‘There are people out there who don’t believe our story, don’t want to believe our story, want to bet against us, and worse, use the media to drive us down,’ he told the website. ‘The only way you can work against that is to demonstrate they’re wrong.’ Turning to the forthcoming arrival of the DBX SUV, he said: ‘It will probably become the most important car in our history, because it will become the car that transforms us as we try to address all parts of the high-luxury market. ‘It will target the US and China, two critical markets, and it will change the dynamics of the company.’ Commenting on the cut in production for 2019 from 7,250 to 6,400 cars, Palmer pointed out that Aston Martin had actually enjoyed a 26 per cent increase in sales year-on-year. However, it cut its sales forecast to 6,500 from between 7,100 and 7,300, as a result of low orders placed by dealers. On the plus side, though, sales to car dealers in the Asia-Pacific region and US rose by six per cent in the first six months. He added: ‘We’re confident about what we’re doing. But we rely on selling cars today to fund the development of cars for the future and that’s what (critics) point to and question whether we can do that. I think we can.’ Car Dealer approached Aston Martin for a comment but didn’t get a response by the time we went to press. However, Palmer’s sentiment to dealers seems clear and resounding: ‘Keep calm and carry on.’ As this edition of the magazine went to press, the manufacturer’s share price was rallying slightly from its downward trajectory, at 579.81p, so could the tide be turning for the brand? Only time will tell.
Contactless car vending machine that eliminates haggling goes on show BRITAIN’S first contactless car vending machine has been tried out in public to offer motorists a haggle-free way to buy a new car. A new study by Auto Trader of 2,000 British motorists found that more than nine in 10 (92 per cent) admitted they were bad at haggling when it came to buying a car and 89 per cent said they found haggling embarrassing and uncomfortable. On the back of the research, Auto Trader installed the machine in Spitalfields Market, London, allowing purchases of up to £21,000 and showcasing how consumers can ‘buy and go’ without having to worry about haggling.
The car vending machine attracts attention A team of six engineers spent three months designing and building the dispenser. A custommade point-of-sale system and key release function was created, alongside an integrated
payment and door-release mechanism. It featured a new Renault Zoe from Lookers, as Auto Trader said the Zoe was one of the most searched-for electric cars in the country. The vehicle was available for £16,000 – against the recommended retail price of £22,470, which was already agreed with the dealer. Ian Plummer, commercial director at Auto Trader, said: ‘Price transparency is a real pain point according to our 2019 Car Buyers Report, and we wanted to demonstrate that not only will consumers be able to buy a car haggle-free, but the price will be fully transparent too.’ CarDealerMag.co.uk | 07
Dashboard. SUCCESSFUL YEAR
Cambria announces boost in profit, revenue and aftersales
C
ambria has seen its revenue, gross profit and aftersales contribution increase. In a pre-close trading update and notice of preliminary results, the group – which has a portfolio of high luxury, premium and volume car dealerships – said its trading performance during the first 11 months of the current financial year to July 2019 was ‘significantly ahead of the corresponding period in 2018 and is therefore expected to be ahead of current market expectations for the financial year ended 31 August 2019.’ Total new vehicle unit sales for the period were down 15.5 per cent like-for-like but the change in franchise mix significantly enhanced the profit per unit, it said, meaning the total profit from the
new car department of the business improved significantly year on year. Similarly, total used unit sales were down 5.1 per cent compared with the same period last year, but the reduction was offset by a continued improvement in gross profit per unit and, as a result, the total and like-for-like profit from the used car department of the business improved year on year. Overall, revenue rose 1.8 per cent like-for-like, gross profit was up 1.1 per cent like-for-like, and the
aftersales contribution increased by 1.9 per cent like-for-like. Chief executive Mark Lavery, pictured, said: ‘As a group, we have had a successful year, reaping the benefits of our significantly enhanced property portfolio and our excellent, diversified brand mix. The franchising changes undertaken in previous years have given us a strong platform from which to build, with our increased representation in the high luxury segment positioning the group for future growth. ‘Whilst the current economic environment remains uncertain, we continue to make good progress and remain well placed to take advantage of any opportunities.’ Cambria’s preliminary results for the year to August 31 will be announced on November 20.
LATEST FIGURES
Car production falls again, says SMMT CAR production in the UK dropped by 10.6 per cent year on year in July. Publishing the data, the Society of Motor Manufacturers and Traders renewed its calls for a Brexit deal to be completed swiftly to aid the British auto sector. It was the 14th successive month of decline, the SMMT said, citing as causes the ‘ongoing weakness in major EU and Asian markets coupled with some key model changes’. SMMT chief executive Mike Hawes said the statistics showed an acute need for a Brexit deal to maintain the UK’s competitiveness and to boost investment. ‘Another month of decline is a serious concern,’ he said. ‘The importance of maintaining the UK’s global competitiveness has never been more important so we need a Brexit deal – and quickly.’
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Dashboard.
News from around
What’s been hitting the headlines on the home front? Here’s a PETERBOROUGH
Film screening gives hospice a reel boost
MOTORPOINT’S first ever drive-in movie event in Peterborough has raised more than £1,100 for charity. The UK’s largest independent car retailer, which is based on Edgerley Drain Road in the city, teamed up with Sue Ryder’s Thorpe Hall Hospice to put on a special screening of The Greatest Showman starring Hugh Jackman at the Serpentine Green Shopping Centre. Over 200 people attended the event, raising a total of £1,132. Nilesh Patel, senior community fundraiser at the hospice, added: ‘I can’t thank Motorpoint enough.’
NORTHERN IRELAND
Two managing directors open pair of Isuzu outlets A PAIR of Isuzu dealerships in Northern Ireland have had their new premises officially declared open by two of the brand’s managing directors. The manufacturer bosses flew in from Germany and England to launch the sites being run by John Barr Cars in Antrim and Eakin Bros in Maydown. Mikio Tsukui, the managing director and CEO of
NORFOLK
NELSON
Desira Suzuki helps appeal with Swift
Important new site for Perrys Motor Sales
A SUZUKI dealership group is supporting a hospital’s fund-raising appeal by donating a new Swift SZ3 supermini for a charity raffle. Desira Suzuki, which has dealerships in Norwich and Lowestoft, is helping the Norfolk and Norwich University Hospital’s Boudicca Breast Cancer Appeal. The raffle, with tickets costing £5 each, runs until December 6. Stuart Stone, Desira Group MD, said: ‘We are very proud to be supporting the appeal and wish it success over the next few weeks.’
PERRYS Motor Sales Ltd, which has over 50 car dealerships nationwide, has officially opened the doors to a new showroom in Nelson, Lancashire. The dual-brand Citroen and Peugeot dealership is the result of the merger of two showrooms, bringing the pair of sites into one integrated location. Denise Millard, executive director at Perrys Motor Sales, said: ‘This is an important development for Perrys in the region.’ General manager Mark Leighton is pictured outside Perrys Nelson.
10 | CarDealerMag.co.uk
Isuzu Europe, flew in from Germany and said: ‘It is a great honour to have our dealers investing in their futures with Isuzu.’ UK MD William Brown said: ‘I’m personally delighted with this huge double leap forward. Customers old and new will benefit greatly from the bigger and better facilities.’
Best-selling new cars in August August 2019
Source: SMMT
Ford Fiesta
3,978
Volkswagen Golf
3,439
Tesla Model 3
2,082
Ford Focus
1,886
Mercedes-Benz A-Class
1,880
Ford Kuga
1,770
Volkswagen T-Roc
1,685
Volkswagen Tiguan
1,632
Vauxhall Corsa
1,592
Ford Ecosport
1,477
The statistics, p58
LINCOLN
Everything under one roof for Nissan team
MARSHALL Group has opened the doors of an all-new dealership in Lincoln combining sales, aftersales, servicing and used car facilities in one modern, state-of-the-art facility. David Crooks, dealer principal, said: ‘The brand new site is a huge reflection on the culture of growth and progression at Marshall. ‘Working alongside construction consultants APSS, we have not only increased the size of the showroom, but have also been able to upgrade our customer waiting areas with the latest facilities available.’
The future is unique; the future is personal
Focus on Bluesky Interactive, p45
the UK
First drive:
Mazda CX-30 ‘Well kitted out and impressively refined’
round-up of stories
Forecourt, p41
EXMOUTH
CREWE
READING
Hendy donation hits right note for band
Grenson Motor Co. joins MG network
Suzuki showroom soon proves popular
EXMOUTH Town Concert Band has become one of the first beneficiaries of the Hendy Foundation which was set up to support good causes. The band has been given £1,470 to buy jackets for new members. Hendy Foundation is a charity that provides grants of between £500 and £5,000 to local projects, people and charitable organisations in the areas in which it operates across the south of England. The firm is donating £2 for every retail car it sells which is set to add up to £50,000 in the first 12 months.
MG MOTOR UK has welcomed Grenson Motor Company to its expanding dealership network. The firm’s bright and modern showroom is new to the MG brand but has already seen an excellent response from new and existing customers. Sean Pattinson, sales director at Crewe-based Grenson, said: ‘Although we had no previous history with MG, we had been keenly watching its impressive sales growth over the past few years and it is clear that the brand has a great future.’
‘We’re already seeing the rise in online ordering for new cars; I can see this growing into the used market over the next year or so.’ Ben Garside, p35
PETERSFIELD
Pictured from the left at Motorpoint’s new head office in Derby are digital marketing manager Scott Greensmith; brand manager Sarah Taylor; Trevor Raybould, principal of commercial property consultants Raybould and Sons; HR director Cat Moseley; and content manager Rebecca Lowton
SsangYong recruits another new dealer
SSANGYONG has a new dealership in Hampshire. Rogate Ssangyong will offer the manufacturer’s range of 4x4s and SUVs from its premises near Petersfield. Nick Laird, above, managing director of SsangYong Motors UK, said: ‘The focus on the expansion of our dealer network is of paramount importance to our customers.’ Mike Luff, dealer principal at Rogate SsangYong, said: ‘We were attracted to the SsangYong brand by the exciting new product making its way to the UK, especially the allnew Korando.’
SUZUKI is pleased to announce the opening of a new showroom in Reading, operated by WLMG. The dealership is in Rose Kiln Lane, one of the main automotive retail thoroughfares in the Berkshire town. Neill Jackson Smith, group sales operations manager at the business, added: ‘We are very pleased to be adding Suzuki to our existing portfolio. It made perfect business sense to represent the brand in Reading. Since we opened our doors, the showroom has proved extremely popular.’
DERBY
New home, sweet home for happy Motorpoint team MOTORPOINT has moved its head office to the Wyvern Business Park in Derby. The independent car retailer, which was founded in the city more than 21 years ago, has taken 7,000 sq ft of office space on one of Derby’s premier business locations next to the Wyvern Retail Park and the A52. The building has subsequently been named
Champion House. The two-storey offices, which were extensively refurbished, house the accounts, finance, HR, learning and development, marketing and stock control teams, encompassing more than 60 employees. Cat Moseley, HR director of Motorpoint, said: ‘We really couldn’t be happier with our new home.’ CarDealerMag.co.uk | 11
Dashboard. CELEBRATIONS
JCB Group marks two decades in business with exclusive offerings A south-east motor group is celebrating 20 years in business. Originally launched as a single Volkswagen dealership in Gillingham, Kent, the JCB Group has experienced many ups and downs over the years, but through effective management, hard-working staff and a vision for the future it has gone from strength to strength while remaining a privately owned, family-run business. Managing director Jonathan Bischoff set up the JCB Group while he was working for another dealership. He wrote to Volkswagen, explaining that he was desperate to be given the opportunity to run one of its outlets. To his delight and surprise, Volkswagen replied, offering to be the guarantor behind the new venture. Fast-forward to 2019 and Bischoff’s team has now sold more than 250,000 vehicles. Moreover, the business has grown to include representation for 11 different manufacturer brands, car, van and campervan rental, parts supply, van and campervan conversion plus contract hire and vehicle management. All of this sees Bischoff’s team of more than 500 staff transacting with hundreds of customers and businesses every day. Reflecting on the past two decades, he said: ‘I’ve been very much centred on developing a regional dealership group which is customer-focused
Jonathan Bischoff says his company has seen rapid expansion recently and financially robust. We’ve seen rapid expansion in the last five years in particular. investing £2 million in showroom improvements. buying out two motor groups. adding 11 new showrooms with additional repair centres to our portfolio, and introducing partnerships with automotive brands Mercedes-Benz Vans, Skoda, Kia, Citroen, Suzuki, Mitsubishi and SsangYong. ‘Along the way, we’ve collected many different accolades from manufacturers, business analysts, workplace surveyors and professional bodies for customer service, cementing our reputation as Kent and Sussex’s leading automotive retailer.’ As part of the celebrations to mark its 20-year milestone, the JCB Group has introduced two exclusive customer
‘I look forward to the next 20 years of taking care of customers old and new.’ Stephen Bischoff
service offerings. The first is the launch of Platinum Special Edition vehicles on key models across all its top brands. These feature top-quality specifications and trim levels, all enhanced with platinum livery to make them look and feel extra-special. Meanwhile, customers who don’t have much spare time to test-drive a vehicle can take advantage of the new JCB concierge service. As well as offering convenience, the service aims to alleviate any nerves some customers may have when driving in unfamiliar areas by allowing them to stay close to their home or workplace. Bischoff added: ‘Our continued innovation helps make us an industry leader, but without the support of all our customers, partners, staff and friends over the past 20 years, we wouldn’t be the business success we are today, and for that I am very thankful. I look forward to the next 20 years of taking care of customers old and new.’
Marshall buys Honda Reading and Newbury outlets MARSHALL Motor Holdings has completed the purchase of Honda Reading and Newbury from Jardine Motor Group. The acquisition of the Berkshire showrooms, for an undisclosed sum, extends Marshall’s relationship with Honda and sees it 12 | CarDealerMag.co.uk
become the maunfacturer’s secondlargest franchise partner in the UK with eight locations – the others are in Harrogate, Hull, Leicester, Peterborough, Scarborough and York. Daksh Gupta, chief executive of Marshall, said: ‘We have a long-
standing relationship with Honda and have worked closely with them in consolidating the territory and securing these two retail locations in markets we know very well. I am delighted to welcome all our new colleagues to the Marshall family.’
WAYLANDS
New showroom opens following £1m investment
WAYLANDS Oxford has opened the doors of its new showroom following a £1m investment. The Volvo retailer’s new home on Cumnor Hill is adjacent to its previous premises, with the newbuild featuring a range of models from the recently refreshed range by the Swedish manufacturer. It also includes a greater display of Approved Used Volvo Selekt models on the forecourt, as well as increased parking. Designed to make customers feel relaxed and at ease, the 10-car showroom features a signature lounge area, with Scandinavian furniture, free wifi, plus coffee and cake for a Swedish ‘fika’ break. General manager Dominic Gouldsborough said: ‘The team and I are delighted that our new showroom is now open. The investment demonstrates the high level of importance we place on making the Volvo customer experience as individual and as enjoyable as possible.’
ASTON BARCLAY
Richard will direct sales ASTON Barclay has appointed Richard Cross as its new group sales director to drive physical and digital sales growth. He brings with him more than 20 years’ automotive industry experience with retail dealerships, suppliers and remarketing companies.
Join the Go-Karting Challenge
Car Dealer Magazine and Close Brothers Motor Finance have teamed up to host the 2019/2020 Go-Karting Challenge. 5 regional qualifying rounds
(Stockton, Manchester, Reading, Harlow and Cardiff)
Free to enter – either as an individual, or as a group of up to four people Food and refreshments also available 90 minutes endurance race Top two teams go through to the final in Leicester in March 2020
Please visit cardealermagazine.co.uk to register your interest for the Stockton event which takes place on Wednesday 16 October. Stockton: TeamSport, Bluehouse Point Road, Porttrack Industrial Est, Proctrack Lane, TS18 2QX
CarDealerMag.co.uk | 13
Dashboard. GO-KARTING CHALLENGE
Gripping stuff as roar-some contest makes thrilling return to the tracks!
The heats are on... Chequered flag is poised as our fabulous free race event is staged again
I
t was a massive hit first time round and now it’s back! Yes, get ready to don your racing gear for the great Car Dealer GoKarting Challenge! This thrilling and free-to-enter event – made possible once again by the sponsorship of Close Brothers Motor Finance – sees dealerships competing in 90-minute endurance races at fantastic indoor tracks operated by TeamSport Karting for a place in the final. We were inundated with requests to take part in the inaugural challenge, such was its popularity, so the good news is that this year we’ve added a qualifying round to enable more of you to join in the fun! Twelve teams of four drivers compete in each regional qualifier, and the fun will start on Wednesday, October 16 with the first round at TeamSport’s Stockton-on-Tees venue. It continues the next day – Thursday, October 17 – at the Manchester Trafford Park track. There will then be one more round this year – in Reading on Wednesday, November 13 – before there’s a pause and things rev up again in the new year at Harlow on Thursday, January 16. The fifth and final qualifier takes place in Cardiff on Thursday, February 6, with the grand
Teams battle it out earlier this year at the final – if you fancy rising to the new challenge it’s easy to apply for a place
final being held in Leicester on Wednesday, March 4. At each qualifier, the top two teams – and a couple of other top performers – will be awarded a place on the grid in the final. Amanda Philp, events manager at Car Dealer Magazine publisher Blackball Media, said: ’Everyone had amazing fun on the first gokarting challenge and such was its appeal that we had loads of requests to hold it again, so we’re delighted to be bringing it back, thanks to Close Brothers Motor Finance. ‘In fact, it proved so popular that to cater for the demand this time round we’ve increased the number of regional qualifiers. ‘It promises to be another spectacular event and we can’t wait for it to get under way!’ Thanks once again to our friends at Close Brothers Motor Finance, without whose support this event would not be taking place.
Q&A What time does the racing start? Teams will need to arrive at the venue before 7pm. Free parking is available at every track. Before the race begins at 8pm, there’s a mandatory drivers’ briefing plus a 15-minute practice session, which will get you used to the layout, kart and pit stops. Who can drive? Every driver in your team needs to be a part of the motor trade – no professional racing drivers will be allowed to take part, nor will any non-motor traders. If you’re unable to put together a team of four from your staff, you can combine with other local dealers. As long as they work in the motor trade, they can be part of your team!
Feel the need for speed? Apply for a chance to be part of this great event by 14 | CarDealerMag.co.uk
PHOTOGRAPHY: JON REAY
Avoid trouble with trading standards officers
Car Dealer Club, p66
See more pictures from last year’s challenge at bit.ly/cardealeralbums
Below: The first challenge’s top three teams
Will I need any gear? No. TeamSport provides helmets, race suits and gloves at each track, so there’s no need to buy any gear you don’t have. Can I take part in any qualifying round? No. You can only apply to take part in the regional round closest to you. Multiple applications will be deleted. Will there be prizes? Yes! There will be a podium ceremony at each regional round and trophies for the top three finalists next year. How do I sign up? Any dealership can apply to enter this
spectacular free event by emailing us at karting@cardealermagazine.co.uk – please put ‘Go-Karting Challenge’ as the subject line. The names of teams will be drawn out of a hat at random for each qualifier and you’ll be informed if your entry has been successful.
Dates and tracks
How long do we have to sign up? There’s not long now until our first two regional heats take place, so get your applications in asap if you’d like to join the action. The deadline for the Reading round is Friday, October 4, while Harlow’s cut-off is Friday, December 6. Those wanting to compete in Cardiff must apply by Monday, December 23.
Wednesday, November 13: Reading
emailing karting@cardealermagazine.co.uk
Qualifiers Wednesday, October 16: Stockton-on-Tees Thursday, October 17: Manchester Trafford Park Thursday, January 16, 2020: Harlow Thursday, February 6: Cardiff
Final Wednesday, March 4: Leicester
CarDealerMag.co.uk | 15
Join the Go-Karting Challenge
Car Dealer Magazine and Close Brothers Motor Finance have teamed up to host the 2019/2020 Go-Karting Challenge. 5 regional qualifying rounds
(Stockton, Manchester, Reading, Harlow and Cardiff)
Free to enter – either as an individual, or as a group of up to four people Food and refreshments also available 90 minutes endurance race Top two teams go through to the final in Leicester in March 2020
Please visit cardealermagazine.co.uk to register your interest for the Manchester event which takes place on Thursday 17 October. Manchester: TeamSport, Trafford Park, 4 Wharfside Way, Manchester, M17 1NF
16 | CarDealerMag.co.uk
Dashboard.
What’s been getting dealers talking?
Feedback, p30
BIG MOTORING WORLD
Hundreds of jobs created at car dealership’s new vehicle preparation centre O ne of Britain’s leading independent car retailers has created 300 jobs with the opening of a National Vehicle Preparation Centre in Peterborough. The new facility represents an investment of £14 million by Big Motoring World, an award-winning dealership group that specialises in the sale of quality pre-owned cars from prestigious manufacturers such as BMW, Audi and Mercedes-Benz. It has been equipped with an array of specialist equipment to ensure that vehicles marketed and sold by Big Motoring World are prepared to the highest of standards before being dispatched to the company’s sales sites in Kent and east London. And the project to create the preparation centre was completed in double-quick time. Big Motoring World sealed the deal to purchase the 170,000 sq ft warehouse in Peterborough’s Morley Way just a few weeks ago and work soon got under way to make it fit for its new purpose. The scale of the operation now running at the centre is certainly impressive and demonstrates Big Motoring World’s ambitions for growth – as well as its determination to exceed industry standards when it comes to vehicle preparation. The building is equipped with a full production line, more than 70
The scale of the operation now running at the centre is certainly impressive ramps for maintenance work and predelivery inspections to be carried out, and 15 MOT bays. There are 14 ovens so that paintwork can be made as good as new and even three photobooths so pictures can be taken for the purposes of online advertising. Big Motoring World has certainly come a long way since the days it was founded on the driveway of its CEO, Peter Waddell, 30 years ago. It typically has around 3,500 high-quality vehicles in stock and sold a staggering 22,000 cars during 2018. The new preparation centre will ensure the ongoing high quality of the cars it supplies to customers and provide a springboard for future growth. Bob Ruprah, operations director
‘This is an exceptional facility of which any dealer group would be proud.’ Peter Waddell
at Big Motoring World, said: ‘I’m delighted to have been involved in the creation of our national preparation centre. We received the keys to the building on June 1 and got the site operational exactly two months later – it was a phenomenal team effort. ‘Everyone in Peterborough has given us the warmest of welcomes and the staff we have recruited are of the highest calibre with exactly the skill sets we need.’ Waddell, Big Motoring World’s chief executive, said: ‘I’m proud of the whole team and Bob in particular who has played a key role. ‘This is an exceptional facility of which any dealer group would be proud and shows that even after 30 years in business, we never stand still. We have even more exciting plans for the future – watch this space!’ There are still some vacancies at Big Motoring World’s National Vehicle Preparation Centre. To find out more, go online to bit.ly/jobs-sept19
Shelbourne Motors’ 28 per cent rise in pre-tax profit SHELBOURNE Motors saw its pre-tax profit rise by 28 per cent to £1.2m last year. The Portadown-based vehicle retailer attributed the year-on-year increase to a strong sales performance in new and used cars as well as aftersales services.
Financial director Caroline Willis said: ‘Shelbourne Motors is delighted with the company’s financial performance in 2018. We are operating in a challenging and competitive environment, and to record a 28 per cent increase in annual profits reflects
the strength and growth of our brand. ‘Our 2018 performance has strengthened our position as one of Northern Ireland’s leading vehicle retailers, built upon an ethos of delivering exceptional choice and service to our customer base.’
‘BORING BRIGADE’
Complaint sees cheeky ‘69’ banner removed
A CAR dealership was forced to remove a cheeky sign promoting its 69-plate offers after a complaint was made to the business. Kendal Seat in Cumbria put up a banner that read ‘Come inside for your 69’ in anticipation of the new number plate being launched on September 1. On August 28, it announced the news on Facebook, saying ‘Oh look, our new banners are up!’ But the following day the dealership posted an image of the sign being removed. Referring to the complaint received, it said: ‘The boring brigade have been out in force – down she comes.’ Dealership marketing manager Kerry Hatton told the Daily Mail the sign was ‘a bit of fun’ and that no offence had been intended. Picture: Kendal Seat/Facebook
REBRAND
Over and out for Westover WESTOVER dealerships in Dorset and Wiltshire are to be rebranded Hendy Group to bring all of the motoring giant’s franchises under the one name. Chief executive Paul Hendy said the dealerships would take its name from October as part of the acquisition of Westover, which was completed in March. ‘We look forward to having everyone operating under the Hendy name. This is a major milestone in our 160th year of operation,’ he added. CarDealerMag.co.uk | 17
Used Car Awards. TIME TO ENTER
It’s great to grab a gong at the best awards night! I t’s the best night out in the industry and winning a Used Car Award delivers genuine benefits to your business! That’s not us saying so but Scott Sibley, director of Redgate Lodge in Newcastle upon Tyne. The dealership picked up the gong for Best Use of Video at the 2018 event and will be hoping for more success this year. We caught up with Scott recently and he told us: ‘We had a fantastic time at The Brewery last year and it’s amazing to win – it’s incredible!’ The company managed to gain some useful newspaper coverage after its triumph and has been shouting about its success online. Flags on the dealership’s forecourt also highlight the amazing achievement. Asked if the win had done anything for the business, Scott replied: ‘Yes, I would think so. I think it’s really important to win an award. We really make a big thing of it if we’re fortunate enough to win – it’s definitely good for business.’ As well as the video accolade in 2018, Scott’s fellow director and wife, Jane, was highly commended as a Dealers’ Dealer of the Year – and the team are hoping for success in other categories this year as well. Scott told us: ‘We’re going to enter the Over 100 Cars category, and we’re going to try for the Best Service and Repair Outlet too – we operate a Bosch service centre. We’re working on our entries now.’ Apart from the business benefits a Used Car Award delivers, the ceremony itself is a fantastic evening. ‘It’s a great night,’ said Scott. ‘We come down on the train, we stay over and it’s a good event. We really enjoy it.’ If you’re thinking of entering for the Used
Scott, second left, and Jane Sibley, of Redgate Lodge, picked up the Best Use of Video trophy last year from host Mike Brewer, right, and Oliver Parsons of category sponsor CitNOW Car Awards, there’s no time to lose! Although there might still be two months or so until the ceremony takes place, the countdown is definitely under way. As you probably know by now, the event shines a spotlight on the best, brightest, smartest and downright nicest across the full spectrum of the trade. And winning a Car Dealer Used Car Award is BIG. Dealers and sponsors are proud to let the world know about their successes, because the awards show how highly
‘We had a fantastic time at The Brewery last year and it’s amazing to win – it’s incredible!’ Scott Sibley
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18 | CarDealerMag.co.uk
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regarded they are within the industry. The event, sponsored by Black Horse, honours all parts of this vital backbone of the motor trade, too. From the smaller independents to the larger groups, it’s for every dealer in the used car business. This year, the awards are being held on Monday, November 25, with the fantastic theme of ‘The Goodnight Cabaret’. We’ll be handing out gongs in a variety of categories, and if you reach the final shortlist you’ll be invited to our glittering ceremony, hosted by TV’s Mr Wheeler Dealer, aka Mike Brewer, at The Brewery, London. You’ll be able to enjoy a terrific meal, free drinks and – if you fancy it – lots of dancing! It’s always a grand night out, so don’t delay, enter today!
Award categories Used Car Dealership of the Year: Up To 50 Cars We’re looking for the best dealership that stocks up to 50 used cars.
Used Car Dealership of the Year: 51-100 Cars
Used Car Dealership of the Year: 100+ Cars
Behind every great dealership there’s a great sales team – and that’s who this award is for.
Used Small Car of the Year
We’re looking for DPs who absolutely excel at running a successful used car dealership.
Best Used Car Customer Care
Used Sports Car of the Year
Canny dealers know that cultivating a used car customer can create a punter for life – a loyal supporter who’ll return time after time.
The above five category winners will be chosen by taking into account which make and model has the best residual value in its sector after three years or 30,000 miles. These awards are something that no individual dealer can influence – it’s all about the market figures for the vehicles concerned.
Used Car Dealership Group of the Year Aimed at those with more than one site, this award marks the best used car group.
Used Car Supermarket of the Year
Social Media User of the Year
This award is for supermarkets that provide great cars and great service on a major scale.
This award will mark the achievements of a dealer that has mastered their digital direction. Inquire
This award recognises the best dealership established during 2018.
Service & Repair Outlet of the Year
Inquire
We’ll be looking for the garage that excels in repairing and maintaining used cars.
Specialist Used Car Dealership of the Year If you sell specialist used cars, you need to have something special yourself to take this home. The UK’s Best Used Car Warranty
Honouring the best official manufacturer-backed Used Car Scheme of the Year.
Used Car Dealer Principal of the Year
Used Executive Car of the Year Used SUV of the Year
This one is for the larger dealers stocking more than 100 cars.
Manufacturer Used Car Scheme of the Year
Used Car Sales Team of the Year
This winner will be selected from the following five category winners, based on the absolute chart-topping vehicle whose value has stood the test of time against all the others.
Used Mid-Sized Car of the Year
This award is for the best dealership that stocks between 51 and 100 cars.
Newcomer Dealership of the Year
Used Car of the Year
To nominate yourself or anyone else, go to bit.ly/ucanom19
Manufacturer Used Car Website of the Year We’re looking for interactive sites that are easily navigable and present used vehicles clearly.
Dealer Used Car Website of the Year Our judges will be looking for the ease of use, design and functionality of the website. Inquire
Recognising the dealer or dealership personality who has achieved something truly remarkable.
Recognition from your peers is what makes this award extra special.
Lifetime Achievement Award Inquire
Spotlighting dealerships that have made the best use of video technology to present their products and services.
Inquire
Whether it’s a brilliant online sales portal or a clever warranty scheme, this award will celebrate the very best of suppliers.
Outstanding Achievement of the Year
Dealers’ Dealer of the Year
Best Dealership Use of Video
Used Car Product of the Year
Approved Dealer
For this trophy, the judging panel will be looking for a big hitter in the motor industry.
Rising Star Award The spotlight here is on a person under 25 years old who is tipped to be one to watch in the used car sector.
Inquire
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CarDealerMag.co.uk | 19 28/06/2019 13:55
Dashboard.
PICTURES: DARREN CASSEY
B
est-laid plans and all that. With the 2019 Frankfurt Motor Show looming into view, Honda invited us over to check out the production-ready ‘e’ and chat to the bigwigs behind the scenes who’d brought this retro-future all-electric supermini from concept to reality. However, Balpa – the trade union that represents British Airways pilots – decided to go on strike on the very day we were due to fly out. BA, to its credit, offered to change the flights on this day – but not for the return journey, meaning we would have to fly out of London City Airport and back into Heathrow. Rather than figure out the logistics of parking at one airport and getting a train to and from the other, we decided to take Honda up on the offer of driving the 600 miles to Frankfurt in a 2019 Honda Civic Type R and 2005 Honda NSX. A simple and obvious solution I’m sure you’ll agree. So, at 6am, with the darker mornings of autumn beginning to take full effect, I slotted myself into the bucket seat of the Civic Type R and pointed its angry snout towards Folkestone and the Channel Tunnel. As a night owl, it’s not often I’m out and about that early, but as a car enthusiast, there’s no better time to hit the road. With few other vehicles on the country roads that lead to the M25, I could complement the caffeine in my veins with a little spike of adrenalin to fight my bleary eyes. The go-faster Civic has been out for a while now, so I’ve had no need to drive it for a couple of years. In the meantime, I’ve driven rivals such as the Hyundai i30 N and thought them just as capable and worthy of ownership. However, after a hard charge in the morning light I’m reminded just why this Japanese hatchback is still top dog in the hot hatch world. The engine buzzes through the body work and 20 | CarDealerMag.co.uk
Road trip to Frankfurt
Seeing off the BA strike in a couple of rapid Hondas On a mission to witness the beginning of a new future for Honda, Darren Cassey tackles the journey in two of its most exciting cars. makes it feel alive. The power delivery is violent too, so planting your foot into the throttle sees a frantic surge of revs accompanied by an angry engine note that makes you want to just keep charging on into the next gear. As I hit the mundanity of commuter traffic on the M25 and M20 en route to the tunnel sous la Manche, the other side of its character became apparent. It’s no Mercedes S Class, but considering its ability to tear along the A285 like it’s the Nürburgring, it settled into an impressively quiet cruise. At 9am I pulled into the swanky FlexiPlus terminal on the British side of the Channel Tunnel to join John from Honda, with whom I’d be convoying through Europe. The road to Frankfurt was long – nearly six
hours without a break. And our drive would be punctuated by a stop at the aforementioned Nürburgring Nordschleife, because it’s kind of on the way and it’d be rude not to, wouldn’t it? Northern Europe passed by without fuss, characterised by the flat plains of France, the last of the late-braking Belgians and the mesmerising wind turbines of Holland. Into Germany and off the autobahn, the scenery became otherworldly. Every time I head into the Eifel forest, within which the Nordschleife winds its 16 miles of tarmac, I’m blown away afresh by its beauty. Tall trees loom over the roads that carve an undulating path across the region’s hilly terrain, and every break in the bark reveals stunning vistas that remind me of the South Downs times one thousand.
Our drive was punctuated by a stop at the Nürburgring
‘Our swift progress fights the weariness of eight hours on the road. Or is that the Red Bull kicking in?’ Honestly, the only difference between the roads surrounding the circuit and the circuit itself are the red and white kerbs – you could have an awesome time behind the wheel here without ever putting a tyre on the track. After seeking out a ludicrously expensive currywurst with chips and watching camouflaged SUVs corner hard during an industry test day from ‘YouTube corner’, it was time to hit the road again. This time I jumped into the NSX, which, being a 2005 model, feels ancient inside. The design was relatively unchanged between its introduction in the ’90s and production end in 2005, so although a lot of the mechanicals underneath were updated throughout its life, it certainly feels like an older car inside. The first thing that hits you is that the cabin feels like a time machine – you’re sat low to the floor, but the low dashboard, large windows and thin A-pillars make you feel like you’re quite high. Unlike many modern supercars, visibility is excellent, and it feels surprisingly airy inside. There are plenty of ’90s plastics in there too, with large old-school dials in the instrument binnacle and even a cassette player. It’s glorious. And then you find yourself heading down an empty slip road with an inviting, derestricted autobahn ahead of you. The throttle pedal is firm, and you get a real feeling that you’re truly connected to the car through every input. You have to mean every muscular push of the pedal. The 3.2-litre engine makes 280bhp, which doesn’t sound like much by today’s standards, but the way VTEC kicks in at about 3,500 revs gives it real character. The engine note completely changes to an aggressive rasp intermingled with the rush of intake sound. It’s real and raw and allencompassing and just begs you to keep charging on – just like the Civic. It feels faster than the
Both cars performed admirably on the journey
Fuel’s pricier than it was in the NSX’s heyday!
Under the sea and bound for Frankfurt
figures suggest, too. With no speed limit, we’re cruising at three figures with ease – and our swift progress fights the weariness of eight hours on the road. Or is that the Red Bull kicking in? Either way, another driver change just outside Frankfurt sees me back in the Civic. The light clutch makes heavy traffic easy to deal with, my smugness at picking the right car for the final stretch matched only by sympathy for John’s left leg on the heavy NSX clutch. As we crawl the last couple of miles to the Sofitel Frankfurt Opera hotel, we’ve taken two cars from the Land of the Rising Sun from dawn in England until said orb sets behind tall, glass skyscrapers in Germany. The orange hue in the sky matches that of the supercar’s paint job. Looking in the rear-view mirror at this iconic orange supercar, hunkered low to the ground and flanked by black, grey and silver German SUVs, it looks like an alien spaceship. And it’s fantastic. Both cars have performed admirably, never skipping a beat. The Civic Type R proved the appeal of a hot hatch, offering blistering performance and the ability to settle into sensible duties when required, while the NSX proved that its reputation for showing Italian rivals exotics don’t have to be unreliable was well-founded. We’re here to see the beginning of a new future for Honda, with the all-electric ‘e’ supermini taking centre stage at the show. So it seems fitting to have journeyed here in two exciting models that represent the manufacturer’s present and past.
Turn over page for full coverage of the Frankfurt Motor Show CarDealerMag.co.uk | 21
Dashboard. No shortage of talking points... and two big reveals
Mercedes-AMG GLB35 AMG’s mission to increase the number of semi-fast performance cars MercedesBenz offers continues with this, the GLB35. The 2.0-litre turbocharged fourcylinder engine makes about 300bhp, which should make for brisk if not ballistic performance in a vehicle this size.
by JACK EVANS @jackrober
T
he Frankfurt Motor Show is traditionally a key event in the motoring calendar, promising eyecatching concepts and visions of the future face of the way we drive. This year felt different. Traditionally a tidal wave of new metal, this year’s Frankfurt show didn’t feel quite as jam-packed. Two big reveals stood out – the Land Rover Defender and Volkswagen’s ID.3 – but apart from those it was mainly populated by cars we’d either already seen or wild concepts that’ll never grace our roads. And even our man on the ground Darren Cassey noticed more space in between the stands, with key manufacturers such as Nissan, Bentley, PSA Groupe and even Ferrari all noticeably absent. There were definitely some cars that provided interesting talking points, however. We’ve picked out the key cars at this year’s show – and why they’re so important.
Porsche Taycan It seems like an age since Porsche first revealed plans for an all-electric sports car, but Frankfurt saw it deliver the production car at last. The Taycan could be the first genuine ‘Tesla killer’ – boasting an impressive range that’s said to be upwards of 300 miles while delivering big on performance.
Inside
22 | CarDealerMag.co.uk
Land Rover Defender
Frankfurt
The new Land Rover Defender project has been leakier than an old Defender after a particularly audacious river crossing. There will be three body styles – a short and long wheelbase plus a slightly longerbodied version – with five-to-eight-seat versions, and six engines including a plugin hybrid. See p26
show stars Here are the cars that grabbed our attention at Frankfurt this year – some of which could be causing a stir in your showrooms soon... Volkswagen ID.3 Said to be the third most important car in VW’s history, after the Beetle and Golf, the ID.3 could be a revolution for the new car market. It’s not the firm’s first fully electric vehicle but its first real attempt at making the technology rival internal combustion-powered options. See p25
Hyundai 45 concept showcases future of the firm p24
Audi Beauty and a beast – the new RS 7 Sportback p24
Honda e
Cupra Tavascan Concept
Honda’s cutesy all-electric supermini made yet another public appearance in nearly-but-not-quite production form. Designed for the urban environment, and originally called the Urban EV, the Honda e has a competitive range of up to 136 miles. The manufacturer’s recommended prices start from £26,160 OTR. See p24
The Tavascan Concept is the latest model to come from Cupra – the performance brand which is now very much its own thing, rather than a part of Seat. This latest car is all-electric, with motors at each axles, showing the electrification that Cupra is trying to integrate into its line-up.
Audi RS6 Avant
BMW X6
Volkswagen T-Roc Cabriolet
It’s the performance car we’ve been waiting for – the all-new RS6 Avant. The previous-generation RS6 proved to be a turning point for Audi, with brutal performance and rock-solid handling combining to create a car that was both practical and savagely quick, and this latest version ups the ante.
BMW’s X6 has long been a chalk-andcheese option in the firm’s line-up. It’s now been updated, and the big coupestyled SUV gets new tech and a refreshed design. A special-edition ‘Vantablack’ model has been created too, using ‘the darkest colour’ possible. It’s still likely that the X6 will divide opinion.
When Volkswagen first showed off the T-Roc crossover, it was in ‘Breeze’ concept form – a drop-top look at what would become a hard-top car. Nobody was ever quite sure if a convertible version would happen – and yet the T-Roc Cabriolet was born. It made its public debut at Frankfurt.
Lamborghini Sian There was a lot of mystery surrounding Lamborghini’s big reveal in Frankfurt. In the run-up to the show, we just had a teaser that showed a sinister silhouette of a supercar with a wild headlight design reminiscent of those on the otherworldly Terzo Millennio concept.
BMW Bold Concept 4 boasts a dynamic new look p26
Alpina All-new B3 Touring is an underground hit p26 CarDealerMag.co.uk | 23
Dashboard. HYUNDAI
45 concept showcases the future of the firm
HYUNDAI revealed its future design direction at this year’s Frankfurt Motor Show with this – the 45. It pays homage to the firm’s Pony Coupe Concept, revealed in 1974, taking on an angular and almost wedge-like design. Viewed from the side, the electric concept car has a boxy silhouette, as well as striking Z-shaped design details along the bodywork. Up front, small chopped rectangle LED headlights feature in a slim grille, with a similar approach for the car’s tail-lights. Hyundai has designed the interior with the concept’s autonomous functions in mind, creating a spacious area that’s described as a ‘unique living space’. Said to be inspired by traditional house furniture, it’s splashed with wood, fabric and leather trimmings. Lounge chair-esque seats are implemented in the rear, with the front seats able to be swivelled around to allow front occupants to interact with other passengers when the car’s autonomous features are in use. Don’t expect the Hyundai 45 concept to enter production, although it could well inspire future cars from the firm.
Audi AI:Trail AUTONOMOUS cars don’t have to mean the end of off-road adventures – at least that’s what Audi reckons with this new concept. The AI:Trail all-electric driverless vehicle is built purely to take on the tough stuff. Its mapping system is said to be extensive for perfecting routes off the beaten track and it even has drones in place of headlights.
24 | CarDealerMag.co.uk
HONDA
It’s not all about the range – balance is key too, says chief Japanese manufacturer wants to ‘minimise the space used by the mechanicals to maximise the space and the freedom for the customer’
E
lectric range is ‘not the only attribute that reflects the value’ of the upcoming Honda e, the boss of the project has said. Speaking to Car Dealer at the Frankfurt Motor Show, Kohei Hitomi, large-project lead at Honda, explained why the car has a 136-mile maximum range between charges – despite other new EVs boasting 200-plus. Hitomi said: ‘Our base research results showed that electric vehicles made the most sense in an urban environment, where we want to reduce the levels of local pollution. So our grand concept was that we wanted to build a city commuter as an EV, meaning the size of the car was a very essential aspect. That in some ways determines the size of the battery. ‘Honda follows the man maximum, machine minimum principle, so we want to minimise the space used by the mechanicals in order to maximise the space and the freedom for the
by DARREN CASSEY @darrencassey
customer. So the size of the battery, the weight of the car, it is all balanced out in order to not waste energy. ‘How often do you drive with more than one person in the car? How often do you travel long distances? Normally, you do not require such high battery capacity, so if you’re not utilising it you’re just wasting energy. ‘The other thing is that we have to be careful with resources – mining the lithium, but also the recycling of the battery. It all requires energy. ‘So the size of the battery also takes that into account, so as not to overdo it and have a battery that’s too big, instead finding a balance that treats our resources carefully.’ Hitomi compared the e to smartphones, saying
AUDI
VOLKSWAGEN
Distinctive-looking Audi RS 7 Sportback breaks cover
First ID.3 UK deliveries to take place next summer
AUDI dropped the performance car hammer at this year’s show with the RS 7 Sportback. Powered by a 4.0-litre twin-turbocharged V8 with 592bhp and 800Nm of torque, it’s capable of hitting a top speed of 155mph – although an optional upgrade can lift this to 174mph, or 189mph if the ‘Dynamic Package Plus’ option is selected. The RS 7 also incorporates a new mild-hybrid system as well as active cylinderon-demand technology. It sees a 48-volt electrical system linked to a belt alternator that can actively recover energy and use this to power auxiliary functions. This means that when using higher gears, the engine can shut down cylinders 2, 3, 5 and 8 in order to improve fuel consumption.
The RS 7 has been given a distinctive look compared with the regular A7. It sees a front added that is 40mm wider than the standard car, while new 21-inch alloy wheels only bolster the car’s visual appeal. A new rear bumper features too, housing two large exhaust pipes. Inside, the cabin is similar to that of the A7, albeit with a set of leather sports seats and a flat-bottomed steering wheel added to give the car a sportier feeling. In addition, the RS 7 gets two driving modes – RS1 and RS2 – which allows drivers to tailor the car’s settings to their needs and access them via these two dedicated buttons. The RS 7 is slated to arrive in the UK early next year, although no official prices have been released as yet.
VOLKSWAGEN’S all-electric ID.3 made its world debut at the Frankfurt Motor Show. Arriving as the firm’s first purpose-built all-electric vehicle, it’s based on a bespoke pure-electric platform destined to underpin several other models. Initially offered in ‘1st Edition’ specification, it’ll come with a 201bhp rear-mounted electric motor linked to a 58kWh battery. It means that the ID.3 will be able to travel between 186 and 261 miles on a single charge, according to Volkswagen. All of those ‘1st Edition’ cars have already been reserved, with first deliveries expected to arrive in the UK next summer. It’ll be around the same time that the remainder of the ID.3 models go on sale. A lower-powered 148bhp variant will be available – with a range of between 143 and 205 miles – along with a more powerful version with 201bhp and a 77kWh battery. It’s this version that Volkswagen says will be able to travel for up to 342 miles between trips to the plug. UK prices are yet to be revealed, but the ID.3 1st Edition is claimed to be ‘under €40,000’ (circa £35,900).
Mercedes-Benz Vision EQS Tom Gardner, Honda Motor Europe senior vice-president, presents the Honda e that battery size was dictated by the need for it to fit in your hand, adding: ‘No one buys an iPad instead of an iPhone just because they don’t want to charge every day. They buy the phone because it fits the way they use it and change their charging habit to fit.’
‘The size of the battery, the weight of the car, it is all balanced out in order to not waste energy.’ Kohei Hitomi
He admitted that for those who needed longer range it might be a difficult sell, but said he believed that driving range wasn’t the only attribute that reflected the value of the car. ‘There is another smartphone analogy here,’ he added. ‘I remember my old Nokia, the charge would last a week or more, but now I rarely get through a whole day without needing to charge. But the added value my smartphone gives me is a totally new dimension. Also, as infrastructure improves and we introduce new energy management and charging solutions, we believe driving range will become less of a talking point.’ Honda will bring the e to market in 2020, with order books now open. Prices start at £26,160.
MERCEDES is grafting hard to push its allelectric EQ sub-brand, and this new concept shows its take on EV luxury. It boasts an elegant design, futuristic technology and a plethora of premium materials. Don’t expect it to go into production, but it could easily inspire future road-going models.
CarDealerMag.co.uk | 25
Dashboard. BMW
Concept 4 showcases striking new design direction for range ONE OF the most striking concepts to arrive at Frankfurt was this – the BMW Concept 4. Showcasing a dynamic new look, it points towards the design of the next generation of the 4 Series. The huge kidney grille at the front of the car is the most noticeable design feature, dominating the nose of the Concept 4. It follows on from a similar design seen on the X7 SUV and 7 Series saloon. Domagoj Dukec, head of BMW Design, said: ‘The kidney grille has always been a signature feature of BMW cars. The BMW Concept 4 presents a confident and classy take on this iconic feature. At the same time, the BMW
Concept 4 offers a look ahead to the expressive face of the 4 Series range.’ BMW says the Concept 4 takes inspiration from the classic 328 and 3.0 CSL models, which it references in its sweeping exterior lines. Currently, the LED lights have no glass cover but are worked into the body instead – this is a feature that will be an unlikely touch on the production model, though. There are no images of the car’s interior as yet, with the show car’s dark tints precluding any view of the cabin. However, given the car will be based on the new 3 Series, it’s likely that the upcoming 4 Series’ interior will be largely the same as the saloon version.
ALPINA
LAND ROVER
All-new B3 Touring is an underground hit
ONE OF the underground hits of the show was Alpina’s latest performance estate – the B3 Touring. Based on the latest BMW 3 Series Touring, it packs a 3.0-litre straight-six engine with 462bhp and 700Nm of torque. The manufacturer claims that it can push the B3 Touring to a top speed of ‘over 300km/h (186mph)’. Power is driven through an eight-speed ZF gearbox and sent to all four wheels through BMW’s xDrive all-wheeldrive system. An electronically controlled rear-axle limited-slip differential should help with cornering, too. It comes with 19-inch alloy wheels as standard, although these can be upgraded to 20-inch versions as an optional extra. As a result of being based on the regular BMW 3 Series Touring, the interior of the B3 is largely the same. The most noticeable exterior changes are the quad exhaust outlets and large front splitter. It’ll be available to order in the first quarter of 2020, with deliveries expected to start from the middle of the year. 26 | CarDealerMag.co.uk
Reborn Defender ‘has something for everyone’ says boss JLR is looking to woo premium buyers as well as appeal to traditional demographic – and interest in the range is high
E
arly interest in the newly revealed Land Rover Defender has been more than double what the Range Rover Evoque received ahead of its reveal in November last year. After the covers were pulled off the all-new off-roader at the show, Jaguar Land Rover UK managing director Rawdon Glover told Car Dealer that the firm was pleased with the reception the Defender had received. ‘It’s difficult to quantify whether the response has been bigger than we expected,’ he said. ‘We know there’s a lot of interest and pent-up demand, and it’s arguably one of the biggest car reveals of the year, but it’s hard to know how that will translate. ‘That said, we’ve had 14,000 people say they’re interested and want to be kept informed. Considering we had about 6,000 for Evoque and we sell about 20,000 Evoques a year, it’s an orderof-magnitude different.’
by DARREN CASSEY @darrencassey
He also reported that following the reveal, JLR was feeding about three leads per minute through to its retailers. The Defender has traditionally been seen as a workhorse model, favoured by those who need a simple but effective off-roader. However, this new version also wants to appeal to urban buyers looking for a premium and practical SUV. Glover said the company wasn’t targeting one demographic and thought there was ‘something for everyone’ in the range. To reach new premium buyers while appealing to the traditional Defender demographic, JLR is offering a highspecification urban-focused version as well as a £35,000 commercial vehicle. Widening its appeal appears to be working, as
HYUNDAI
N Line adds sportier touch to i10 line-up
‘The BMW Concept 4 offers a look ahead to the expressive face of the 4 Series range.’ Domagoj Dukec
HYUNDAI showcased a sportier variant of its i10 with an edgy new N Line version. Already available on the larger i30 hatch and Tucson SUV, N Line brings a look inspired by the firm’s ‘N’ performance models to its range – and that’s the case with the i10 too. Up front, it takes a revised bumper sporting a triple-slash, offset red design detail with a matching bottom lip and N Line badging to distinguish it further. At the back of the car, a diffuser is present to enhance the racy visual. Inside the city car, an N-branded steering wheel and gear stick feature, as well as red air vent rings and metal pedals. Sports seats are included too. Full pricing and specification are yet to be confirmed, although the model will feature trim-specific 16-inch alloy wheels and LED daytime running lights as standard. Powering it is a 1.0-litre three-cylinder engine producing 99bhp and 172Nm, sent to the front wheels via a five-speed manual gearbox. Performance and efficiency figures have yet to be confirmed, though. Hyundai is bringing the i10 N Line to the European market next summer.
VW’s leaner logo VOLKSWAGEN revealed a new logo at the show – marking the first time the firm has had a major rebrand since 2000. It retains the same stacked ‘VW’ that’s been a mainstay of the firm’s badging since its 1937 inception but now takes on a 2D effect rather than the previous 3D form, along with thinner lettering. [CD]
The Defender refuses to die...
he confirmed that about 70 per cent of interested buyers were coming from other brands. The original iconic Defender went out of production in 2016. The new version is as instantly recognisable as its predecessor thanks to its boxy silhouette, punctuated with modern features such as LED headlights. The 2019 Defender is based on a new aluminium platform and gets a configurable terrain-response system that adapts the 4×4’s drive settings for the surface. Meanwhile, the
interior combines a traditional spartan look that’s true to its rugged roots plus a modern infotainment system and over-the-air updates.
‘It’s arguably one of the biggest car reveals of the year, but it’s hard to know how that will translate.’ Rawdon Glover CarDealerMag.co.uk | 27
Happy Customers
The direct route to happy customers Award-winning warranty and motor related add-ons from AutoTrust www.weareautotrust.co.uk 28 | CarDealerMag.co.uk
Big Mike Our man on the inside shares his thoughts on the car business
The customer who hit the roof over a dent I’d never seen before
T
hey say in retail that the customer is always right, but after several years in the motor trade, you and I know for definite that this is not the case. Please forgive me, then, for having a bit of a rant. For the first time since my last divorce, I found myself in court last week. Luckily, this time around I didn’t lose my house, but I very much lost my patience. Now, the Consumer Rights Act is all well and good in terms of the protection it offers people who buy stuff. And by stuff, I mean things like televisions, mobile phones and toasters. If they go bellyup, the law will help you get your money back – at least if you don’t throw said item through a first-floor window in a fit of rage, which is the fate that befell my most recent smartphone. It works with new cars, too, as by virtue of being new they should be fault-free – at least in terms of their overall condition rather than their styling, namby-pamby driver aids and things that bing and bong at you for the first 10 minutes of every journey. However, I’ll save that particular soapbox for a different day. With a used car, the act is a greyer area. Yes, there are things that, as a used car dealer, you have to do. The car has to be safe, fit for purpose and as described, and it should at least get down the road without too much hassle. The days of putting ‘px to clear’ in an advert to get away with selling a death trap are long gone, but by virtue of being a used car (the clue is in the name), it doesn’t have to be perfect. However, some buyers don’t seem to realise this and often the noise made by a complainant is inversely proportional to the value of a car. The cheaper the car, the more likely you are to get a ‘screamer’, as I like to call them. And that’s exactly what happened last week. A few months back, I had a 2001 Audi A4 on the lot that I’d taken in part-ex and I decided to ship it down the road at the ‘works every time’ price of £795 – the default price tag I apply to any half-decent banger, which tends to filter out the knuckle-dragging mouthbreathers who often populate the lower branches of the used carbuying tree. Well, usually. This time, though, I got stung on the bum. The lady (and I use that term very loosely) who bought the car was a bit frosty from the start, but a sale’s a sale, and she seemed happy enough with the car after a good nose around it, a random check
of the dipstick and a drive round the block. She handed over £700 in crumpled banknotes and I took the other £95 on the chin, as I needed the space for more valuable stock. Plus, it stood me at £450 anyway, so I still had a bit of beer money. Fast-forward seven weeks, and the first I heard of the owner being dissatisfied was a strongly worded legal letter. Apparently, there was a big dent in the roof, one of the tyres was ‘dangerous’ (or, to be more precise, needing topping up with air every couple of weeks) and the key didn’t operate the passenger door lock. That last one was quite a surprise, as last time I looked, Audis of this vintage only have a manual lock on the driver’s door. However, I don’t like being bad-mouthed as word of mouth sells cars better than any newspaper ad, so I offered to inspect the car and put right any faults I could find. Mrs Screamer made it quite clear when I called her that it was my ‘bloody problem’ to sort out and she wasn’t going to waste any of her time bringing the car over, especially as it was ‘dangerous’, so I offered to pop round and have a look. When I arrived amidst the sprawling concrete jungle in which she lived, I could clearly see the big dent in the roof. It looked as if somebody had jumped up and down on it, which given the shady behaviour of the local youths was quite possibly what had happened. The tyre was flat (although the hastily discarded valve cap was still next to it, suggesting that, like the buyer, it was a bit of a let-down) and there was, as I expected, no passenger door lock. In order to intimidate me further, she brought her son (early 20s in age and stone, sleeveless vest, bad tattoos) along with his pitbull terrier and promptly pointed to the bleeding obvious and said I had to sort it. I refused. So she took me to court. Alas, the burden of proof falls upon the vendor in such circumstances, and while I knew for a fact that the Audi didn’t have a great big dent in the roof when I sold it, I hadn’t taken any photos of it either – it sold before I even got round to listing it. I could have defended my position and maybe even won, but I was too busy and too stressed out already to deal with the hassle, so in the end I had to give her ladyship the money back. It’s childish of me, I know, but seeing as I now knew her address, I’d have loved to have seen the look on her face when she had 14 cash-on-delivery takeaways delivered that evening… Every car dealer goes down fighting, after all.
‘Often the noise made by a complainant is inversely proportional to the value of a car.’
Who is Big Mike? Well, that would be telling. What we can say is he’s had more than 40 years in the car trade so has probably forgotten more about it than we’re likely to know. CarDealerMag.co.uk | 29
Feedback. Your comments via email to dave@blackballmedia.co.uk
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Anything with a year’s JUST wondered how everybody else deals with the sort of customer who asks questions like the one above? I get really bored of these people appearing in the doorway with a long list of ‘requirements’ and literally bugger all to buy anything with. I think the worst one was a few months back. This old dreamer turned up, told me he wanted something really nice, it had to be in excellent condition, he wouldn’t accept any rubbish, and was prepared to pay £300. I told him the guy in the workshop with one arm has a pushbike that cost £3,500, go figure. I had a call today from a customer who has got up to £2,000 to spend. Told them I had nothing. They asked me to find them something, to which I said no, it’s not worth the hassle. To me, a £2,000 retail car will probably end up owing me about £1,995 by the time its prepped. Am I just in a bad mood, or do people really bother searching for sub-£2,000 cars for customers?! CRW If it’s there, they can have it. I keep a little list of people and if something crops up that I would’ve bought anyway, then I’ll ring them. No special effort goes into it but when it does work out, it makes them feel all nice and glowy... and I tend to earn £200-£300 more than I would’ve normally sold it for. Mojo121 I love those sorts – *not*. We all get them. Usually with us, it’s ‘what autos do you have for less than £500?’ or ‘what £20-tax cars have you got under £500?’ I keep meaning to buy one and park it up. It’s over there mister, it’s the green one covered in dents, rust and bald tyres. Yours for £400 and a skip comes with it. David Horgan
Picture of the month
We recently got together three of the most highly sought-after sports cars on the planet – the Alpine A110, Porsche 718 Cayman T and Toyota Supra. While Darren took photos and Ryan filmed some video, Jack made the most of the Japanese car’s spacious boot to take notes. (Or, more likely, scroll Twitter.)
The other one I had a couple of weeks ago was a family friend who wanted a Fiat 500 for their daughter for between £1,000 and £1,500. I think some people just pick a car and pick a number and imagine it will magically happen. Unless they are a total tool, I do keep their number ‘in case something comes in’. I then file it and tend to just forget it! CRW On the other hand, you do sometimes get a clean 44,000-miles, one-owner Polo/Corsa etc in part exchange – or a little auction gem that you put up at between £995-£1,995 dependent on year etc. And you then get the punter who wants the four matching Michelin tyres and full main dealer service history. Or they want it absolutely mint
out of the box and moan about the touchedin bumper corner scuff on a £1,295 Polo. They might walk away but then you might get another customer who says it the best they have seen and just part with the cash without any hassle. It’s a funny old world! Casper A request I had today was, ‘can you do it for £2,000 cash trade sale?’ (car was up for £2,495). I replied, ‘Sorry, we have prepped it past trade sale specs – shall I keep your number and if anything pops up, we’ll be in touch? We always like to trade something on.’ To which he replied, ‘What does trade mean as regards to what I get?’ I replied: ‘The full details will be in your trader’s guide.’ He replied: ‘Of course, I forgot about that – will check later. Cheers for your help.’ justina3 Sometimes they try to chat to you, ‘yeah mate, it is what it is’, trying to be cool despite the fact they are sweating their nuts off trying to rake up £250 to pay for it. I feel like saying that when it implodes going up the road or the rear end collapses with rot, it will still be ‘what it is’ – totally knackered! They also like to tell you they have sold loads of cars over the years as if I should be impressed. The fact they are penniless, middle-aged and stinking suggests they weren’t very good at it. CRW
Would you do anything different? You are at the start of your trade career. In hindsight, would you do anything different? stockedup! Gone into politics – have you seen the money some of these people earn? justina3
Top plate-change day tweets Our #WessexPenarth #Cardiff salesman, Jamaul White, is super excited for the new 69 plate! #whatasmile Wessex Garages @wessexgarages Another 69 plate @LandRover #RangeRover #Evoque delivered to a very happy customer this morning. Thank you for your business, Jo, enjoy your new car. Bywater Motor Group Ltd @BywaterMotors Mr and Mrs Goodwin collected their brandnew 69-plate #MGZS today and it looks absolutely stunning! Pinkstones MG Stoke @MGStoke
30 | CarDealerMag.co.uk
Wow! What a busy week we’ve had handing over all your new 69-plate cars! Tates Cars @tatesforcars Our customers, Julie and Steve, are owners of the popular ‘Stamens Florists’. They use their Transit Connect van to deliver fabulous fresh flowers all over the UK. Today, they added to their collection and picked up their brand new 69-plate Transit Connect from our team. Peoples Ford @PeoplesFord Mrs Borland is the proud owner of a new 69-plate Fiat 500X thanks to our sales executive Ellie. Sturgess Motor Group @SturgessCarsLtd
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MOT and about £300? TRADING TROUBLES
I’ve offered to repair or refund – so what’s next? ABOUT two weeks ago, I sold a car for £3,000 to a customer. The customer collected the car at 7.30pm. He had around a two-hour drive home. At around 11pm the same night, I got a message saying he was having a few minor issues that needed repairing. I offered to repair the car which I’m always happy to do if there is a genuine issue. I then got a message saying he had repaired the issue himself but now there was another little fault. Again, I offered to carry out the repair if the car was brought back and I even offered to cover the cost of fuel. After a few days without a response I got another message saying that now this issue has been fixed by himself (not a reputable garage so I can follow up to check the work has been carried out, and no receipt for proof of repair). You can guess where this is going next; the customer is now saying he has found more faults and I need to pay for the repairs. As I’ve said, I’ve offered to repair the car for him and even cover his fuel for him getting to and from my premises. Now he’s stating I should repair a chip on the windscreen which wasn’t there when I sold the vehicle.
He’s also stated he has done in excess of 100mph in the car and there is a slight shake when braking at that speed. Again, I offered to repair at my expense as I have with everything else but he doesn’t seem to want to bring me the car to do the repairs. I got yet another message saying there were even more issues with the car. (I’m now getting suspicious the faults don’t actually exist.) I’ve offered a refund for the full sale price of the car – now he’s saying he wants extra money for the repairs he has done (which there’s no proof of). Now I’m being threatened with trading standards. Where do I stand? Jordan
trading standards, in my opinion, you fulfilled your legal requirements by offering repairs or a full refund, in fact more so by offering fuel money. As far as I’m aware, it’s down to the customer to return the car to you. I would offer him the refunds but only the full price he paid for the car – no fuel, no repairs etc. If he’s not happy, stand your ground. If you play by the book, trading standards are pretty fair and you will have nothing to worry about. After all, you have offered a full refund. If you have photos of the car showing the windscreen at the time of sale, you will be able to prove there was no chip. Casper
I would say your customer is not entitled to any money for repairs as you offered to get these carried out. If he doesn’t have any receipts for parts or repairs, where is the proof? As for
Under the Consumer Rights Act 2015, you have the right to inspect. He either brings the car back as per your returns policy or you go and get the car (ideally with a trailer). When an occasion like this arises, it is crucial that you take control of the situation by getting the car back to inspect. I am sure you are a very nice person and want to do the right thing by your customers, but don’t be a soft touch. stockedup!
‘I got a message saying he had repaired the issue but there was another fault.’
Choosing a finance provider – any ideas? JUST got registered with the FCA and need to choose a finance provider. Planning to sell at around £4-£6k. Who’s best? Is it worth going to a broker as you can access a number of lenders? Thanks in advance. Hamski It’s always good to have your fingers in a couple of pies Hamski. I use two brokers, one for prime customers and one for customers that might not look so good on paper. They have different advantages and disadvantages. My prime broker pays more commission but the paperwork involved is a ball-breaker and is probably responsible for the lack of wood in the Amazon with all
It’s nice to deal with a smaller broker as you get to speak with the main man which can be helpful when things get a bit tricky. Good luck anyway. J.T
the printing of documents and getting the customer to come back in to sign. Then I have to create a special invoice for them and rescan everything and send it all back to them. My other finance company is more efficient and calls the
customers themselves to sort out all the documentation with them directly. I literally just reply with their V5 doc ref and sign an email and return it and it’s all done, though they pay much less in commission.
I would recommend a broker until you understand the breakdown on what to do with applications and have some experience. When you’ve had a fair bit of experience, go direct to lenders. You’ll need three to ensure you cover all the bases of ‘credit scores’. I wouldn’t recommend any more than that as remember, each search goes against your customer’s credit score so you have to be responsible with what you do. Earunder
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CarDealerMag.co.uk | 31
Dashboard. Around the world Dealer news from somewhere other than here
IRELAND
CONNOLLY Motor Group has acquired a Hyundai dealership in Ballybrit, County Galway, expanding its workforce to 280, reports the Irish Times. The deal will also mean Connolly Motor Group takes over a Hyundai service centre in Oranmore, about five miles away. The firm expects to take on more members of staff as it continues to expand. The managing director of Hyundai Ireland, Stephen Gleeson, said: ‘We are delighted to welcome Connolly Motor Group to the Hyundai family.’
AMERICA
MORE than half a million Ford cars and trucks are being recalled in the US, Canada and Mexico because of possibly faulty seat-back recliner mechanisms. Vehicles with improperly assembled mechanisms may not securely restrain an occupant in a crash, increasing the risk of injury, reported the website TFL Car. The Blue Oval is quoted as saying ‘most vehicles are expected to pass the inspection and not require repair’.
SOUTH AFRICA
A CAR dealership was razed as violent protesters went on the rampage in a district of Johannesburg on the night of September 1. Forty cars at Salbro Auto, in the Malvern area of the city, were destroyed, leaving owner Abdallah Salajee distraught. He said: ‘Last night there was not a minute of sleep. We feel terrible and we can’t handle it.’
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32 | CarDealerMag.co.uk
VIETNAM
AUSTRALIA INCHCAPE has sold three retail sites in Australia for £63m. In a statement issued via the London Stock Exchange, it said they had been bought by Sime Darby Motors – historically operated under the Trivett banner, selling Volkswagen, BMW, Mini and Jaguar Land Rover vehicles. The transaction is expected to complete in the final quarter of the year and is conditional on final OEM partner approvals and regulatory approval. The move will herald a streamlining of the Australasia business around the distribution activities of Subaru and Peugeot Citroen.
VINFAST’S aim of establishing itself as the national car brand has taken a step forward with its first deliveries. The company manufactures a saloon, SUV and the Fadil compact hatchback. Not everyone’s convinced, though. Jonathan Nguyen of Ho Chi Minh City said: ‘It will take me at least two years to consider buying anything from them as I don’t trust the quality.’
ADVERTISING FEATURE
Carworld are on the road to success How Carworld is powering up its next phase of growth with RAC Warranty and Assurant. Going from strength to strength As one of the 100 fastest growing businesses in Cambridgeshire and with a history dating back almost two decades, Carworld has become one of the motor industry’s most respected car supermarkets.
The future is bright To power up its next phase of growth, Carworld is working with RAC Warranty and also Assurant, the Fortune 500 company that partners with the RAC in the warranty sector. Both are brands that fit Carworld’s business ethos and provide high levels of expertise and stability. Mahmood Fazal, Founder and Director of Carworld, said “Our intent is to offer customers a different buying experience and we have grown over the years to operate a supermarket and a superstore, both in Peterborough, stocking over 1,500 units in total. This has happened organically through trying to be the best car retailer that we can. We have a mantra for the customer mindset – ‘find it, try it, love it, buy it’ – and we see ourselves very much in the business of satisfying that need.”
“Fundamental advantages include not just the quality of the warranties themselves but the high degree of customer recognition and trust that the RAC brand delivers alongside the corporate expertise and capabilities of Assurant” Mahmood explained.
A true partnership In implementing RAC Warranty at Carworld, Mahmood worked very closely with Tom Binley, Business Development Director at Assurant, who said:
“Carworld is an excellent fit for us. We partner with around a quarter of the Top 50 Independent Dealers and what we always seek is a commitment to customer service that is commensurate with the RAC brand.
Earlier this year, Carworld underwent a comprehensive refresh of its branding and, over the next 3 to 5 years, has ambitious expansion plans both for its existing sites and to increase the number of outlets it operates across the UK.
“A key element of Carworld’s desire to work with us is based on our ability to help them grow, a responsibility we take seriously. We carry out exercises helping to maximise the benefits of the RAC brand and to meet the needs of those customers who wish to upgrade to a longer warranty or more comprehensive cover.
“We believe that there is considerable potential for growth and, as part of pursuing that opportunity, we want to make sure that we have the right partners in place. RAC and Assurant are now a central part of that strategy.
“An essential part of our support are extensive marketing resources which included a review of the Carworld website as well as strengthening their forecourt presence. It is a genuine partnership approach.”
Supporting expansion
You can join the RAC Dealer Network RAC Warranty products are sold exclusively through the RAC Dealer Network, which now numbers 1,400 used car retailers across the UK including independents, franchises and car supermarkets. The RAC Warranty is provided by Assurant*, a Fortune 500 company. We have a core ethos of providing excellent products, high quality training, dedicated account management and focused marketing support. Our warranty proposition is focused on delivering customer value. We provide a choice of 4 levels; Silver, Gold, Platinum and Platinum Plus to suit every customer and additional benefits such as no customer excess to pay.
Do you want to find out more about joining the RAC Dealer Network? By joining the RAC Dealer Network, you’ll have access to both high quality products and expertise from Assurant and the RAC. For further details call 0330 100 3807, e-mail dealernetwork@rac.co.uk or visit rac.co.uk/joinournetwork *Warranty is provided by The Warranty Group Services (Isle of Man) Limited and administered by TWG Services Limited which are both Assurant companies.
CarDealerMag.co.uk | 33
Finance. CARGURUS
2019 ‘could be year of the used car thanks to PCP’ U sed car buyers could take advantage of an influx of ex-PCP models three years after the peak in finance packages, according to CarGurus. The online automotive marketplace has indicated that there is a surge in dealer stock of good-condition, lowmileage, three-year-old cars. New car sales reached a record high of 2,692,786 registrations in 2016, according to SMMT figures, with an estimated 86 per cent bought on finance contracts, the most common of which were three-year personal contract purchase (PCP) and personal contract hire (PCH) plans. This means that many of them will be hitting the used car market in 2019, offering savvy buyers the opportunity to find a great deal on the forecourts. Figures from CarGurus revealed that the number of low-mileage, three-year-old used cars listed on its site has more than doubled, with an increase of 137 per cent since 2016’s PCP bonanza. Chris Knapman, editor of CarGurus UK, said. ‘While 2016 proved to be the
year of the new car, 2019 could very much be the year of the used car, with a vast swathe of ex-finance contract vehicles heading back into dealer stock. ‘Buying a three-year-old car now makes sense, as there will be a consistent turnover of high-quality
vehicles that are being returned or traded in by their original owners at the end of PCP contracts. ‘The bonus of buying ex-finance vehicles is that they are often well maintained with comparatively low mileage because of the finance contract terms and conditions.’
PARAGON
Car buyer confidence ‘crushed by Brexit and diesel’ CUSTOMER confidence is low as Brexit, uncertainty over fuel types and the recently published FCA report highlight challenges for the motor industry. However, a growing sentiment for greener vehicles shows the need for government support. That’s according to Paragon Motor Finance’s most recent survey of 45 leading UK brokers, which revealed that all of them blamed Brexit for weak car-buying confidence. Paragon’s Headlight Summer
34 | CarDealerMag.co.uk
2019 report was published one month after the FCA’s Motor Finance Report advised brokers to be more transparent with customers. Julian Rance, Paragon’s director of motor finance, said: ‘This transparent approach supports Paragon’s long-held belief that being honest and upfront builds trust and loyalty among customers and this in turn encourages repeat business and referrals. It is by no means all doom and gloom. We operate in a cyclical industry and
we will see business start to rev up again when some of the uncertainties holding us back are resolved.’ He added, though: ‘Demand for diesel cars has all but crashed, and while demand for petrol remains strong, we have seen increasing demand for greener alternatives. ‘However, we urgently need action from the government, which needs to invest in a nationwide network of charging points and general infrastructure upgrades.’
GROWTH
MotoNovo platform hits sweet spot
MOTONOVO Finance has attributed falling car values and the Financial Conduct Authority’s review of motor finance in early March as two key drivers behind stock listed on findandfundmycar.com seeing a 10 per cent uplift in just three months. Deputy chief executive Karl Werner, pictured, said: ‘The immediate pressure on margins created by falling stock values and action to address costs is an understandable reason for dealers to be challenging their operating costs. ‘However, the move by some early-adopter dealers to start looking at the implications of any FCA changes has been arguably more encouraging. ‘The additional potential for margin pressure and the threat of action for failure to comply with regulatory standards are all too clear. In this respect, breaches of online finance promotion requirements are very public. In findandfundmycar.com, we’ve built a service with finance compliance at its core. The positive trend in stock levels is fantastic; the more choice we can offer customers, the better.’
IN ASSOCIATION WITH
Time is money BEN GARSIDE
A monthly look at the world of automotive finance and marketing
Keep an ear out for the next big thing poised to shape buying patterns
T
he world is changing and for the better… Digital transformation is upon us all and we need to be awake and ready to accept it. Over the past couple of decades, we have seen a complete shift in consumer behaviour, buying habits and technology. If we go back a little over 20 years, you’ll remember mobile phones that only made calls. Then there were pagers that received very limited communications in text format. You would never have used such a device to buy a car. Around the same time, Apple had just released the iMac G3 – a desktop Mac that was bright, bold and futuristic in design. The see-through casing was eye-catching and forward-thinking. Younger users loved the colours and the older generations could see the way the iMac was put together. Before this, Apple was in trouble financially, and as we know, it has since gone from strength to strength. No-one would have foreseen its next step with the ‘1,000 songs in your pocket’ iPod. This revolutionised the way we bought, stored and listened to music. Things have changed significantly since then. We’ve lost deep screens because of moving to flat screens, and now most portable music devices are on your phones. The way we buy/keep music has also changed again, with a large number of consumers choosing to subscribe to a music stream. This has meant people can listen to what they want, when they want and at one cost for the month – usually about the price of a CD. Car technology itself has changed from tapes to CD players and now we have full
connectivity with Bluetooth technology, meaning the ‘1,000 songs in your pocket’ are in your car and significantly more than 1,000. We have seen parking sensors and now rear-view cameras, too. The used car sales market has also changed along this timeframe. Websites have been improved to assist consumers in viewing vehicles on desktops and mobiles. Videos are becoming the norm, with in-car views and detailed commentary. You can calculate finance agreements based on the vehicle you want to buy, and run checks to make sure it is as advertised. New car sales have really moved on, with full buying capabilities online. Now we can visit a car manufacturer website and buy exactly what we want, all done on the website or mobile. We can tweak the engine size and power, pick the colours and trim, choose from different alloys, add sport features such as spoilers and intakes, the list goes on… Once finished, you can do a full 360 digital visual of what your vehicle will look like, then confirm the purchase. Finally, you can choose to pay for your vehicle upfront or pick a finance package on your chosen vehicle with add-ons. What does the future hold for us? Well, mobile use is sure to continue to grow for larger purchases. We’re already seeing the rise in online ordering for new cars; I can see this growing into the used market over the next year or so, with full purchase availability online (no showroom visit). There’s also a high probability of voice search being used by consumers who want to know things like ‘What is the best car for…’ and these searches could shape future buying patterns.
‘No-one would have foreseen Apple’s next step with the ‘‘1,000 songs in your pocket’’ iPod.’
Ben Garside is marketing manager for First Response. Call him on 07817 518739 or email ben.garside@frfl.co.uk
Turn over the page for more finance stories
CarDealerMag.co.uk | 35
Dealfinder.
Finance. YOUR ESSENTIAL GUIDE TO SMALL SALOON CARS
Audi A3 Saloon
Mazda 3 Saloon
THIS A3 in best-selling S line spec brings sporty looks with its bodykit, LED headlights, lower sports suspension and 18-inch alloy wheels, along with a powerful petrol engine – a 187bhp 2.0-litre unit, which is badged as the 40 TFSI. On top of the customer’s £3,450 deposit, Audi will contribute £3,000. Following this are 35 monthly payments of £449.88. This means that, at the end of the three-year term, the customer will have spent £19,195.80. Should they choose to own the car, a final payment of £15,577.15 plus £10 fee need to be made – bringing the total amount payable by the customer to £34,782.95. Despite the generous deposit contribution, a relatively high 6.8 per cent APR rate means this is still £1,237.95 more than the £33,545 cash price.
THIS is an all-new generation car, introducing a bolder look and lengthy standard equipment list – particularly on the flagship GT Sport Nav+ trim here, which includes a 360-degree camera, black leather seats and Bose sound system. We’ve also chosen the allnew 177bhp Skyactiv-X petrol engine, which promises to combine the performance of a petrol with the efficiency of a diesel. Being such a new model, there are no contributions yet – meaning the customer puts down a deposit of £3,350, followed by 36 monthly payments of £422.80. At the end of the three-year agreement, they will have shelled out £18,570.80. A payment of £12,937.50 can then be made if they choose to own the car – taking the total to £31,508.30. With a 4.1 per cent APR rate, this makes the 3 Saloon £2,413.50 more expensive to finance than if it were bought outright.
SPECIALIST MOTOR FINANCE
Online decision times for credit are cut to 10 seconds S pecialist Motor Finance says it has now reduced online credit decision times to under 10 seconds – without discriminating against some borrowers often declined elsewhere. The Chester-based company, which employs 75 people, has partnered with auto-decision software specialist LendingMetrics to launch a new customer application that delivers ultra-fast decisions. Specialist Motor Finance managing director David Challinor, pictured, said the system aimed to let brokers reach a wider sector of borrowers while still ensuring customer affordability was key. ‘Many brokers now require a sub-10-second response from their panels of lenders, and an easy way to achieve this is to guess affordability
36 | CarDealerMag.co.uk
by DAVE BROWN @CarDealerDave
from a historic credit score,’ he said. ‘However, this doesn’t distinguish between people suffering from chronic financial difficulties and others who have overcome past problems, hold a regular job and carry no great burden of debt. ‘In conjunction with LendingMetrics, we can now much more readily identify such applicants, based on our own unique profiling systems and current national statistical data. ‘Crucially, the tool allows us to make a decision based on how an applicant is likely to conduct themselves in the future, rather than on what has happened in their past.
‘The process takes just seconds but delivers a much fairer outcome.’ David Wylie, managing director of LendingMetrics, said he believed the new platform delivered a ground-breaking approach to automated car finance decisioning. ‘The system is the result of a 12-month working partnership between our companies to create a highly detailed and real-time picture of applicants,’ he commented. ‘Specialist Motor Finance is now able to provide a secure and scalable technology solution through its brokers which allows them to help more customers than ever before.’
IN ASSOCIATION WITH
DID YOU KNOW THAT YOU CAN PROPOSE TO US
Mercedes A-Class Saloon THIS saloon offers an interesting alternative to models such as the larger C-Class and is proving to be surprisingly popular. It’s selected here in A220 form and AMG Line trim level. This brings 18-inch alloy wheels, microfibre and leather upholstery, keyless start and climate control to name but a few features. As it’s also an all-new model, there aren’t any contributions – leaving the customer to put down a deposit of £3,400, which is followed by 36 monthly instalments of £457.33. After three years, they will have paid £19,863.88. If they then choose to buy their A-Class, a payment of £14,650 needs to be made, along with a £10 ‘purchase activation fee’. With all things considered, the total paid is £34,523.88. A relatively high 6.4 per cent APR rate means, though, that this is nearly £4,000 more expensive than the £30,540 cash price.
FLA
DEAL
Consumer car finance market grows for first time since February
Hagerty agrees partnership with auction house
LATEST figures from the Finance & Leasing Association show point-of-sale consumer car finance new business volumes grew by five per cent in July compared with July 2018, while the value of new business rose by six per cent over the same period. The POS consumer new car finance market reported new business up one per cent by volume and four per cent by value. The POS consumer used car finance market reported new business in July up seven per cent by volume and eight per cent by value, compared with the same month in 2018. Geraldine Kilkelly, head of research and chief economist at the FLA, said: ‘In July, the point-of-sale consumer car finance market reported growth for the first time since February 2019. ‘New business volumes in the first seven months of 2019 held steady compared with the same period in 2018. The consumer used car finance market was the main driver of headline growth in July as new business volumes increased at their strongest rate since October 2018.’
SPECIALIST car insurer and valuation expert Hagerty UK has partnered with international auction house Bonhams to provide valuation and insurance services. Hagerty, which provides market reports and data and stages events such as the Festival Of The Unexceptional, will provide Bonhams with free valuations, drive-away insurance and support at the auctioneer’s UK-based sales and MPH events taking place at Bicester Heritage. Buyers who successfully bid on a road-legal car at any Bonhams MPH auction will be able to drive away, fully covered, once they have bought the vehicle, eliminating the need to arrange transport. The first five days of insurance will be free, with the buyer having the option – but no obligation – to then move into a full Hagerty policy afterwards.
ONLINE? SAY YES TO A
PROCESS THAT IS: QUICK EASY EFFICIENT
CarDealerMag.co.uk | 37
Forecourt. FIRST DRIVE
Jaguar XE SV Project 8 Touring The Project 8 Touring is a limited-run performance saloon from Jaguar. What is it like to drive? Jack Evans finds out.
What is it? The XE SV Project 8 is a limited-run, flat-out hard-core version of one of Jaguar’s most well-known saloon cars, packing a 5.0-litre supercharged V8 and a set of dynamics that adhere it far better to a track than motorway jaunts usually associated with the run-of-the-mill five-door on which it is loosely based. But the big wing and roll cage aren’t attributes that everyone wants on their performance saloon. That’s why Jaguar has released this – the Touring – which deletes the out-there styling characteristics while retaining the same earthshattering performance. We’ve been out to see what it’s like.
What’s new? If you thought that the standard XE SV Project 8 was limited in number – just 300 have been produced – then things take another step towards exclusivity with the Touring, as only 15 are ever going to be produced. As we’ve already mentioned the key appeal of this model is the fact that it downplays the car’s performance, which could appeal to those who prefer their performance saloon to look a little more under-the-radar. The performance hasn’t been watered down at all either, although because that rear wing has been removed, the top speed is now a ‘lowly’ 186mph – down from the regular car’s 200mph.
What’s under the bonnet? The Touring uses a 5.0-litre supercharged V8 with 592bhp and 700Nm of torque. Together, that manages to push the Project 8 from 0 to 60mph in just 3.3 seconds and, as we highlighted earlier, flat out it’ll manage 186mph. It has an all-wheel-drive system as well to help manage all of that outright 38 | CarDealerMag.co.uk
‘There’s a titanium exhaust system, which gives the Jag an even more raucous note.’ power. When it comes to gearing, that’s sorted by an eight-speed automatic ’box. There’s a titanium exhaust system here too, which gives the Jag an even more raucous note. There are continuously variable dampers as well, an electronic rear differential and big, effective carbon-ceramic brakes. Jaguar really has thrown all of its performance know-how at the Project 8, and that seems to be somewhat reflected in its price.
What’s it like to drive? The Touring remains largely unchanged over the standard Project 8, and that’s no bad thing. The experience is dominated by that engine; plant the throttle and you’re met with an otherworldly bellow as the car punches its way through the air in front of you. And because it’s supercharged, you’re only rewarded for however long you keep the right pedal pinned. But the Project 8 isn’t only accomplished on the straights. In the beds, its stiff suspension combined with aggressive Michelin Pilot Sport Cup 2 tyres mean the car clings on. A by-product of this is that it’s quite jostly to drive on the road at low speeds, but that’s part and parcel of being a car such as this. The eightspeed gearbox may not be the sharpest, but it switches cogs effectively enough.
Aerodynamics
The Touring version lacks the regular car’s rear wing.
THE KNOWLEDGE Model: XE SV Project 8 Touring Price: circa £160,000 Engine: 5.0-litre supercharged V8 Power: 592bhp Torque: 700Nm Max speed: 186mph 0-60mph: 3.3 seconds MPG: Not available Emissions: Not available TARGET BUYERS: Those who want a limitededition Project 8 without the ‘look at me’ touches.
Exhaust
The Project 8’s titanium exhaust produces an extraordinary racket.
Tyres
Aggressive Michelin Pilot Sport Cup 2 tyres sit on all four corners.
The seating position is also excellent; our car came with traditional leather seats, but we tested another regular Project 8 with carbon, fixed-back bucket seats – and we’d definitely choose the latter, as they’re by far the most supportive, even if they aren’t quite as padded.
How does it look? The regular Project 8 is menacing, and the Touring version still has more presence than most sports saloons. The removal of the rear wing does reduce the look-at-me factor, but that’s the ethos of the model – it’s meant to be a performance car that doesn’t have to shout about it through looks. The proportions are excellent too; the car has a strong, muscular stance without being overly large. The front section is particularly smart, with its Swiss cheese-style air intakes giving it a distinct visual change over the regular XE.
What’s it like inside? The interior of the Project 8 does, for the most part, just resemble that of the regular XE – and
THE RIVALS: Porsche 911 GT3, BMW M4 GTS, Mercedes-AMG C63. KEY SELLING POINTS: 1. Limited-edition nature. 2. Brutal exhaust note. 3. Supremely dynamic. DEAL CLINCHER: The Project 8 Touring may be mad, but it’s a car we’re glad exists.
that feels like a bit of a shame. Yes, it’s been garnished with plenty of carbon-fibre trim pieces, but for the most part it’s regular Jaguar. We’d like to have seen the latest dual-screen set-up fitted to other Jaguar Land Rover cars used here – particularly given the car’s circa £160,000 price tag. The rear seats are comfortable and spacious, and there’s a decent-sized boot too – so this is a performance that you really could use every day.
What’s the spec like? The Project 8 gets all of the luxury items that you’d expect. There’s satellite navigation, air conditioning and a full speaker system, all combining to help make a car that’s comfortable to simply sit in and drive around like a usual saloon. As we’ve mentioned, the carbon-backed sports seats are the ones we’d be choosing if we had the option – they’re brilliantly supportive and actually help to make the car feel a little more special inside. It doesn’t feel lacking in creature comforts but, as we’ve mentioned, it’s just not a cabin that
seems all that special, and given the presence the car has from the outside, that’s a bit of a missed opportunity. Unfortunately, too, all Project 8 models are left-hand-drive only. Although some buyers might not be bothered by this, it is a bit of a pain here in the UK.
What do the press think? Autocar said: ‘A big part of the XE SV Project 8’s appeal is that powerhouse of a supercharged V8.’ Pistonheads said: ‘Special mention must go to the suspension and its infallible ability to retain total composure.’
What do we think? The Project 8 Touring is an attractive prospect. Certainly, any car with close to a 600bhp V8 engine under the bonnet and proper mechanical upgrades gets our vote – it just struggles when you consider it within a wider context. It’s a great showcase of what Special Vehicle Operations can do – we just hope it trickles down into cars that more people can buy, and therefore enjoy. CarDealerMag.co.uk | 39
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Forecourt.
FIRST DRIVE
Mazda CX-30
THE KNOWLEDGE
Mazda has built a new small SUV to slot into another niche. Ryan Hirons headed to Girona to find out if it’s killer or filler. What is it? SUVs play a strong role in Mazda’s current line-up, with the CX-5 first introduced in 2012 now one of its best sellers, followed by the compact CX-3. With this area of the market growing both in audience and niches, there are more gaps to fill – leading to this, the Mazda CX30. Slotting between the CX-5 and CX-3, think of the CX-30 as akin to a Mazda 3 hatchback on stilts.
What’s new? Breaking with convention as regards the current CX list of names, the CX-30 is an all-new model for Mazda – and its third UK SUV offering. Mechanically similar to the 3 introduced last year, it borrows a lot of new technology from that car – namely its Skyactiv-X engine technology and the firm’s latest and refined infotainment system. Other new highlights include mild-hybrid technology and a firstfor-Mazda navy blue interior option.
What’s under the bonnet? We tried out one of the two petrol engines available here in the UK: a 2.0-litre naturally aspirated unit producing 120bhp and 213Nm of torque. Drive is sent to the front wheels via a six-speed manual gearbox, contributing to a 0-60mph time of 10.4 seconds and a 116mph top speed. It also incorporates a 24v mild-hybrid motor. If refinement and ease of use
are high on your shopping list, this might be a strong option. Power delivery is impressively smooth, while the engine can barely be heard even when wringing it out – perfect for those long-distance journeys. But it’s fair to accuse it of feeling gutless and it really has to be worked to make the most of its output.
What’s it like to drive? Mazda has built a reputation for creating engaging cars, and that’s the case with the CX-30. It feels stable even under harder cornering and can quite comfortably deliver some fun on tighter roads. Around town, it’s a dream. Its impressive agility makes darting around easy, while excellent all-round visibility takes extra stress out of driving. We touched on its low engine noise above, and this, combined with a supple ride and low cabin noise in general, allows the car to be very relaxing when coasting along at motorway speeds.
How does it look? The CX-30 uses the latest iteration of Mazda’s ‘Kodo’ corporate design, meaning slim headlights flank a large grille. At the back, a narrow single-circle tail-light design features, while smooth bodywork is present around the rest of the car, rather than the more angular approach taken by some rivals. We’d almost claim to be big fans
of the overall design of the CX-30 – although the masses of plastic cladding let it down at the last hurdle. Mazda will tell you it’s to invoke a proper SUV spirit, but we’ll tell you it makes the car look cheap.
What’s it like inside? Hop inside the Mazda CX-30 and you’re met with a fairly minimalistic but very well laid-out cabin. Controls fall perfectly to hand, while materials used throughout really look the part. Touch the dash and they don’t feel quite as nice as you’d expect, although to Mazda’s credit it uses these lower-quality materials in places where you’re rarely likely to make contact.
Model: Mazda CX-30 Price (as tested): £27,995 Engine: 2.0-litre four-cylinder petrol/24v electric motor Power: 120bhp Torque: 213Nm Max speed: 116mph 0-60mph: 10.4 seconds MPG: 45.6 Emissions: 116g/km CO2 TARGET BUYERS: Young families looking for a high rider. RIVALS Honda HR-V, Volkswagen T-Roc, Toyota C-HR. KEY SELLING POINTS: 1. Enjoyable to drive. 2. Comfortable even at high speeds. 3. Lots of kit. DEAL CLINCHER: Puts bags of kit into a spacious and enjoyable-todrive package.
What’s the spec like? As standard on the Mazda CX-30, equipment highlights include LED headlights, radar-guided cruise control, a head-up display, 16inch alloy wheels plus an 8.8-inch infotainment display with support for Apple CarPlay and Android Auto. Safety features coming at no extra cost are blind spot monitoring, rear cross traffic alert, driver attention alert, lane keep assist, lane departure warning and hill start assist. Pricing for the SUV starts at £22,895, although our GT Sport Tech-equivalent test car weighs in at £27,995. Luxury additions here include 18-inch alloy wheels, all-round parking sensors with a reversing camera, automatic
headlights, a heated electric driver’s seat, a hands-free tailgate, a brown and black leather interior plus the impressive Bose audio system.
What do the press think? Auto Express said the new CX-30 is ‘a bit of a gem’ while Autocar added: ‘It’s more enjoyable to drive overall than most jacked-up hatchbacks.’
What do we think? Mazda is on to another winner with its CX-30. It takes the firm’s ability to build an impressivedriving car and sticks that into a well-kitted, spacious and impressively refined package. CarDealerMag.co.uk | 41
All-New
Renault CLIO Coming this October
To find out more
search All-New Renault CLIO The official combined fuel consumption figures in mpg (l/100km) for the All-New Renault Clio S for comparability purposes; only compare figures with vehicles tested to the same technical conditions, driving styles, vehicle load or any accessories fitted after registration. WLTP is a new based on the outgoing (NEDC) test cycle which will be used to calculate vehicle tax on first 42 | CarDealerMag.co.uk
Edition TCe 100 are: 54 (5.2). The official CO2 emissions are 118g/km. WLTP figures shown are procedures. Actual real world driving results may vary depending on factors such as weather test used for fuel consumption and CO2 figures, however until April 2020 the CO2 figures are registration. Please visit renault.co.uk/configure for WLTP figures for any selectedCarDealerMag.co.uk options. | 43
AutoEdge Cutting edge website personalisation. Don’t assume everyone is the same. Show different content to different website visitors and boost your relevance, which will in turn, create more leads.
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The future of online car buying. The AutoTransact Car Buying Platform is truly future proof and fully customisable to your dealership’s requirements
www.blueskyinteractive.co.uk 44 | CarDealerMag.co.uk
Focus on. Bluesky Interactive
The future is unique, the future is personal BLUESKY INTERACTIVE
AutoEdge Cutting edge website personalisation.
W: blueskyinteractive.co.uk
Don’t assume everyone is the same. Show different content to different website visitors and boost your relevance, which will in turn, create more leads.
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ar dealer websites are set to get personal and adaptive, thanks to Bluesky Interactive’s intelligent AutoEdge technology. In a competitive and challenging marketplace, it is more important than ever to make sure your website is cleverer than those of your competitors. While one step is to avoid looking the same as everyone else by ensuring you don’t have a template website, Bluesky believes that you need to go a step further and ensure that your website personalises its content and layout to meet the needs of individual visitors. Is website personalisation like this possible? Thanks to the innovative AutoEdge product developed by Bluesky Interactive, websites can now change their content and layout dynamically as visitors navigate around your site. Showing an interest in new cars? The website can personalise the homepage to focus on new car search and offers rather than used. Demonstrating an interest in the Audi A7? AutoEdge can highlight key A7 offers and introduce some quick shortcuts to get you where you want to go faster. Were you going to book a service last time you visited but didn’t in the end? Pull out some information about your amazing facilities and great coffee in order to encourage them to complete that booking. Put simply, AutoEdge website personalisation is the future of automotive websites. No longer do you have to balance the needs of all your departments on one over-crowded page – instead, you can ensure that the most relevant features are shown to the most relevant people, boosting your inquiries and improving the experience of your visitor. How does AutoEdge work? The AutoEdge product is a future-focused piece of software that is applied to your new Bluesky Interactive dealer website. Using the latest Microsoft Azure technology combined with cloud-based visitor tracking, it knows what people do and understands their focus and priorities. It can then trigger changes on almost any part of your website – from colours, to test, to banners
01926 651 000
www.blueskyinteractive.co.uk
and images and much more. The only real limit is your imagination! Can you have AutoEdge on your dealer website? If you have a cutting-edge bespoke website by Bluesky Interactive, then yes. We’ve customdeveloped this impressive technology ourselves
to meet the unavoidable need for dealers to differentiate themselves from competitors. With it now live on websites like Drive Vauxhall’s new boundary-pushing site, you too can take advantage of this technology. l Get in touch with Bluesky on 01926 651000 or at blueskyinteractive.co.uk
An AutoEdge visitor example KAREN has been on your dealer website once before – and on her last visit she conducted some used car searches, looked at a selection of vehicles within her budget, and also looked at a single new car of a comparable model. Our clever software understands her behaviour and knows what cars she is most interested in. As she returns to the site, the AutoEdge solution ensures the site is as convenient as possible by auto-populating the used car search with her favourite make and model and pulling through some of the most relevant
‘Manager’s Specials’ to catch her eye. It also shows her a key offer on the new model, with the aim of converting her over to new. She quickly finds her way into a car she loves, and AutoEdge changes the details page just a little – bringing in more reassuring content about how great your dealership is. Thus reassured, she submits an inquiry and comes into your dealership the next day. Because of AutoEdge, your website was more relevant, more personal, and more likely to deliver you a lead. CarDealerMag.co.uk | 45
NO NAME CARRIES MORE WEIGHT The future is bright for the Pick-up Professionals.
If you’re looking for a pick-up franchise, becoming a Pick-up Professional is a brilliant opportunity:
With ten awards and counting, the Isuzu D-Max is class leading. With such a strong product, it’s an exciting time for the Isuzu brand. As the Pick-up Professionals, Isuzu are proud of their unwavering focus; manufacturing hard-working vehicles, built to go the distance, sold by a network of dealers who are truly experts in their field.
There no better time to become a Pick-up Professional, call Rebecca Lamsdale on 0121 730 8190 or email rlamsdale@isuzu.co.uk for more information.
Trade Van Driver 2018 ds awar
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46 | CarDealerMag.co.uk
• Plug-in franchise, simple to operate • Extensive training and marketing support • Healthy margins and opportunity for growth
BEST MODEL
Focus on. Warranty providers Featured suppliers The WMS Group The company that’s won an amazing four Car Dealer Power awards! W: www.wmsgroup.co.uk T: 01844 293810
P49
Autoguard Warranties
Warranty sales: Good for you, good for your customers The dealers who look after their customers are the ones who stay in business – and providing top-quality warranties is a great way to do that.
W
elcome to the world of warranties! Car Dealer Magazine has got together with some of the best-known operators in the warranty arena who, over the following pages, tell us what they can offer dealers and their customers. Of course, warranties are all-important in the sales process, and as we’ve mentioned before in this magazine, they can help you boost your bottom line while adding extra value and peace of mind for customers. The WMS Group is one of the companies featured, and as well as explaining the benefits of working with his team (see page 49), managing director John Colinswood has some excellent general advice for all dealers when it comes to explaining and providing warranties. One of his key points is that clarity and communication are vital when talking to your customers. He confirmed: ‘Clarity is key and everything we do is, of course, based on treating customers fairly. Something else we specialise in is communication with the customer, telling them what’s going on in the process so they’re fully aware at all times.’ Turning to the vehicles for which his products
by DAVE BROWN @CarDealerDave
provide cover, Colinswood said: ‘Every car seems to have its possible faults, and this is really where the purpose of the warranty comes in. ‘We offer training to dealers on how to explain the warranty, what it covers and what it doesn’t. We also explain how to introduce the subject of warranties in the sales process and why it is so important for customers to obtain the extra cover over and above the free offering from the dealer.’ Colinswood is certainly a man who knows what he’s talking about. He’s been in the business for 40 years and told us: ‘What I’ve found in my career is that the dealers who remain in business are the ones who look after customers. The ones who don’t look after customers – they’re not with us any more. It really does come down to that.’ We asked him if he thought increasing numbers of EVs and autonomous vehicles would make warranties more important in future. ‘We don’t see either of those as an issue as far as warranties are concerned,’ he told us. ‘Whatever comes forward, we will warranty it anyway.’
A provocative question that could help you double your vehicle margins. W: autoguardwarranties.com T: 0343 227 1499
P51
Car Care Plan Find out how to make customers for life and cultivate loyalty in your dealership. W: carcareplan.com T: 0344 573 8000
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Warrantywise We chat to the company that says it’s the best choice for you and your business. W: warrantywise.co.uk/dealer T: 0800 001 4551
P54
Other suppliers AA Warranty W: aawarranty.co.uk T: 0330 055 5259 AutoProtect W: autoprotect.co.uk T: 01279 456500 Bluechip Warranty W: bluechipwarranty.co.uk T: 0800 404 5814 Car Protect W: www.carprotect.co.uk T: 03300 555 260 Centurion Warranties W: centurionwarranties.co.uk T: 0800 368 7420 Momentum Warranties W: momentumwarranties.co.uk T: 0344 770 4541 RAC W: rac.co.uk T: 0330 159 1111 The Auto Group W: theautogroup.co.uk T: 0800 148 8339 Warranties 2000 W: warranties2000.co.uk T: 0113 271 1180 Warranty Administration Services W: warrantyadmin.co.uk T: 01522 515600
CarDealerMag.co.uk | 47
The warranty experts
The Automotive industry’s best kept secret...
www.
WMSGroup.co.u
k
Does your current warranty product still suit your business and customer needs? For over 15 years the WMS Group has been providing extended warranty cover and other motoring products to over 3,500 dealerships across the UK. Our warranty products are proven to help attract and retain customers, increase workshop revenue and maximise profitability.
Award-winning warranties
Our warranty products have been voted best in class by UK dealers
24/7 telephone support
Your customers can receive assistance any time of the day
24 hours claims settlement
All valid claims within 24 hours of receipt of invoice
Warranty Provider of the Year 2018 For the fourth year in succession! 48 | CarDealerMag.co.uk
Focus on. Warranty providers
Get on board with The WMS Group – and feel the power! THE WMS GROUP
O
nly the most highly regarded suppliers of goods and services in the automotive sector win the Car Dealer Power awards handed out by this very magazine – so the fact that The WMS Group has won FOUR such accolades should tell you all you need to know about the company. It’s an incredible achievement and points to consistently high standards of product provision and customer service over a period of several years. The WMS Group thinks of itself as the automotive industry’s best-kept secret but it seems as though word is reaching more and more people! For more than 15 years, the company has been providing extended warranty cover and other motoring products to over 3,500 dealerships across the UK. Everything The WMS Group does is geared towards helping you to attract and retain customers, increase workshop revenue and maximise profitability. And even though many parts of the automotive industry are suffering from a severe case of Brexit-related jitters, it seems as though The WMS Group is determined to ‘keep calm and carry on’ – by providing peace of mind for thousands of car buyers and a valuable extra income stream for dealers. ‘Things are going really well,’ managing director John Colinswood told us when we caught up with him recently. ‘We’ve grown considerably over the past 12 months and we’ve expanded continuously over the past 10 years or so, too.’ Asked what the secret of the firm’s success was, Colinswood said: ‘Customer service. We look after our customers, who are the dealers, and their customers too. It’s simple, really – we do what we say we’re going to do. We pay within 24 hours. ‘If an invoice comes in today, there will be a cheque in the post tonight. We don’t have a lot of forms to fill in, it’s all done over the telephone with our fully qualified motor engineers. ‘They all know what they are talking about and we can very quickly establish whether something is covered or not. If it is, we can authorise it and
W: www.wmsgroup.co.uk
T: 01844 293810
What our dealers say Sascron Car Supermarket ‘The support we have had from The WMS Group has been excellent to say the least. We have weathered good and bad times together to ensure our customers have had the best possible service.’ Kalem Chodha, director
get the customer back on the road pretty much immediately. It’s that sort of service that is separating us from the others, I think.’ The WMS Group offers different levels of cover for customers’ vehicles. Colinswood told us: ‘The dealer tends to choose what level of cover is suitable for the type of stock they are selling. We do a range from almost bumper-to-bumper cover to restricted items on vehicles that are older – obviously, the older a vehicle, the less cover you can provide.’ For a new dealer looking to get on board with The WMS Group, the process couldn’t be easier. An account manager, useful training and eyecatching point-of sale material can all be provided very quickly. And in the online-first era, The WMS Group certainly hasn’t been left behind. A fantastic ‘Dealer Zone’ on its website has just been added and is proving to be a boon to partners old and new. You can register policies there, find out how to make a claim, access POS materials and much
Underwoods Motor Group ‘If you want a warranty partner that will implement the best solutions for your business and pull out all the stops to ensure that KPIs are met and exceeded, I cannot recommend The WMS Group highly enough.’ Matthew Waylett, sales director more besides. Colinswood is justifiably proud of the new functionality. ‘Yes, we’ve revamped our website and invested in a whole new IT infrastructure,’ he told us. ‘We have spent about £500,000 upgrading our systems. We’ve got nice, new, slick systems which are better than before.’ One thing that Colinswood is convinced of is that a warranty is not something that’s ‘nice to have’ for a customer, it’s absolutely vital. ‘The way to look at it is this – can somebody, in the middle of the month stand a £3,000 repair bill? That’s what brings it home to a lot of people – they would be in dire straits faced with that situation.’ That’s why dealers shouldn’t be shy about raising the topic of warranties early on in the sales process. ‘A warranty isn’t a superficial add-on, it’s essential,’ he told us. ‘There’s a definite need for it, and by providing a warranty a dealer is giving the customer what they want. I feel dealers sometimes get concerned about giving the customer too much information, but they are actually protecting that customer’s investment, making sure they are not in financial trouble in 18 months’ time. ‘The biggest concern for most buyers is this – have I bought a lemon? In most cases, they don’t really know the dealer, they don’t necessarily know the car, so a good, solid warranty is the element of the deal that can convince them to go ahead. And you can’t work with a better provider than us.’ With four Car Dealer Power awards under its belt (it might even be five by the time you read this!) and thousands of satisfied dealers and motorists on its books, maybe you should get on board with The WMS Group. by Dave Brown (@CarDealerDave) CarDealerMag.co.uk | 49
WANT TO GROW? We can help...
•
Dedicated Business Consultant
•
Motor Industry Leading Solutions
•
Easy-to-use online system
•
Supporting 1000+ businesses nationwide
Did you know we have an App? Scan the QR code or visit our website for more information
WE HAVE YOU COVERED...
03432 271 499
WINNER enquiries@autoguardwarranties.com www.autoguardwarranties.com
50 | CarDealerMag.co.uk
MOTORTRADER
INDUSTRY AWARDS 2019
Warranty/Added-Value Insurance Products Provider of the Year Award
Focus on. Warranty providers
The important question that we can help you answer AUTOGUARD
H
E: enquiries@autoguardwarranties.com T: 0343 227 1499
ow are you going to improve your vehicle margins? Apologies for the provocative question. Many motor dealers are having a tough time at the moment. A potent mix of increasing competition, customer acquisition costs and stock purchase challenges is making vehicle margins increasingly difficult to maintain, let alone improve. Many in the motor industry predict that more dealerships will cease trading in 2019 compared with 2018. Put a date in your diary now in order for you to allocate some time to answer the above question. Too assertive a statement? Possibly, but every business failure starts with eroding margins. Take action and accept that the problem will not disappear on its own. Better this article encourages you into action than a cashflow crisis. Perhaps it is time you let a third party come in and review your business. After all, there could be a dealer a few miles away from you who is selling at a higher margin even though they are selling the same vehicles as you. There are many third parties to choose from. You could hire an independent business consultant, an industry guru or someone who offers staff training and consultancy advice. However, if you want good, free advice from a third party that works with over 1,000 motor dealers in the UK, then there is only one award-winning name in town and that is Autoguard Warranties Ltd. At Autoguard Warranties, we have become a one-stop shop for dealers of all vehicle types who
want to improve their vehicle margins. Each one of our dealerships has its own dedicated, fully trained business consultant and they have one objective: to help your business grow. What’s more, our advice and support are completely free. Here’s just a taste of what we can do for you: • Improve your Income Per Unit Development (IPUD). • Update you on industry trends and how to utilise the internet to drive customers to your forecourt. • Inform you of buyer habits and how they are changing. • Appreciate what your customers value the most. • Help you thrive despite reduced chassis margins. • Suggest improvements on how you can dress your forecourt. • Recommend ways you can buy in stock for less money. • Highlight areas where your face-to-face sales techniques can be enhanced. • Help you reduce your marketing costs. • Stay compliant with the latest rules and regulations. Having the ability to easily include or upsell Autoguard Warranties products in your aftersales process has helped many of our dealers more than double their vehicle margins. You are in very safe hands if you decide to choose Autoguard Warranties to grow your
business. We have a 98 per cent dealer retention rate. This says a lot about how much our existing dealers value our support. We also spend more than £100,000 per year on point-of-sale materials to help drive more customers to your forecourt. We can even provide you with a zero per cent interest-free credit facility so that your customers can spread their warranty or GAP purchases over 10 months. Our easy-to-use online dealer portal and customer app make it simple to manage any aftersales and ensure you spend more time in front of your customers rather than your computer. You can monitor any claims in real time and take the risk out of managing your own in-house vehicle warranty programme. The benefits don’t stop there. If you offer vehicle repair services and your customer brings their broken-down vehicle in for repair, then providing the fault is covered we will pay you to get the customer’s vehicle back on the road. What is the best way forward? If you are struggling to answer the question at the start of this article, then give Autoguard Warranties a call. There is no upfront cost, no obligation, no capital investment and no risk required. • Book a free business consultant appointment now either by calling 0343 227 1499 or sending an email to enquiries@ autoguardwarranties.com
CarDealerMag.co.uk | 51
Drive more business Collaborate with us to shift your sales up a gear. As experts in warranty and asset protection programmes, Car Care Plan know how to drive sales in the automotive market.
For products that lead to bigger deals, visit
www.carcareplan.com 52 | CarDealerMag.co.uk
Focus on. Warranty providers
Making customers for life: cultivating loyalty in dealerships CAR CARE PLAN
W: carcareplan.com T: 0344 573 8000
I
t’s no secret that a loyal customer base is a sign of a business running as it should. The same is true for dealerships; retaining customers demonstrates successful business practice and is ultimately better for the dealer’s bottom line. Loyal customers also have a tendency to be bigger spenders than your average customer, and their loyalty exists for a reason, meaning they’re more likely to make good recommendations to friends and family. So the question is, aside from simply hoping customers had a good experience and will return in the future, is there anything dealers can actively do to boost retention? To answer this question, it’s helpful to look at some statistics surrounding customer loyalty, as well as ways that Car Care Plan’s 40 years of experience in warranty protection can be of assistance to dealers looking to improve customer loyalty. Great customer service can cut lost customers by 67 per cent1 Customer service is obviously a significant reason for buyers to stay loyal. Positive and memorable interactions between customers and staff, alongside speedy problem resolution, can reduce the loss of potentially loyal customers by 67 per cent. One way to create a fantastic customer experience is to help buyers protect their investments. Car Care Plan offers tailored extended warranty products that give customers peace of mind and award-winning protection for their vehicles. Dealers can rest assured that they’re doing right by their customers and presenting an enhanced customer experience, going a long way towards creating a valuable service customers will want to return to again and again. Emotionally connected customers have a 306 per cent higher lifetime value2 Getting customers emotionally connected with either a commodity or with the company selling the commodity can be challenging for many businesses. Dealers, however, occupy a prime position regarding emotional connections between customer and product. People generally feel emotionally invested in their car – it’s one 1ThinkJar
Customers are keen to show loyalty to brands they like customers returning to your dealership, establish relationships and keep disappointment at bay. Selling warranty products alongside vehicle purchases can also establish loyalty – customers will keep returning to your dealership for repairs and assistance, meaning service goes beyond car sales to establish better customer care. of their largest and most valuable possessions, after all. To increase loyalty, dealers can make the most of a customer’s emotional attachment to their vehicle by offering ways to ensure their investment is protected. Offering Car Care Plan’s warranty products has many benefits, including introducing new revenue streams, enhancing the appeal of vehicles sold and the availability of programmes for both FCA- and non-FCA-authorised dealers. All this and more helps inspire an emotional connection between customer and car to improve loyalty to dealerships. Seventy-seven per cent of Brits are members of a loyalty programme3 From this statistic, it’s evident that customers are keen to show loyalty towards brands they like. This is good news for dealers – if customers are looking to remain loyal, the task to build retention is slightly less daunting. On the flip side of this, however, 47 per cent of disappointed customers stop doing business with a brand.4 How can we keep those customers on the side of loyalty rather than disappointment? Introducing a loyalty programme can keep
Evidently, quality personalised contact with each customer can go a long way to improving loyalty among existing customers, in turn increasing profitability. Car Care Plan offers dealers the opportunity to improve customer service and increase profit. Through tracking when a customer’s warranty is due to expire, sending them a renewal email to extend their policy and offering additional products to help protect their investment, loyalty can be cultivated. Furthermore, warranty products can be tailored to the needs of each dealership so dealers can offer the best products to buyers and improve retention. With customer loyalty being such an important part of running a successful business, every effort should be made to ensure that expectations are met and customers leave feeling satisfied. With unexpected vehicle faults causing stress, frustration and potentially high costs to customers, expert warranty protection offered by Car Care Plan can ease these burdens. To find out more about award-winning warranty protection products, visit carcareplan.com l
Research; 2Motista; 3YouGov and partnership and Mando-Connect; 4 Accenture CarDealerMag.co.uk | 53
Focus on. Warranty providers
Why Warrantywise is the best choice for your dealership WARRANTYWISE
F
ounded in 2000, Warrantywise is the UK’s leading car warranty company that you should be looking to work with if you want to protect your customers’ vehicles, enhance your reputation and increase your profits. This wellknown business has more than 6,000 used car dealerships and 750,000 warranty customers on board – figures which speak for themselves. With a great product to its name and a host of famous faces delivering ringing endorsements, there’s no doubting the company’s credentials. Every year, more than 1,000,000 cars are left unprotected when the manufacturer’s warranty expires. Such vehicles have the potential to cost their owners millions of pounds in repair bills during the vehicle’s fourth year and beyond. As a car dealer, it is your duty to offer your customers the highest level of cover, not only to protect them from unexpected breakdowns but also to protect yourself. Selling warranties has never been more beneficial and provides a great extra revenue stream for your business. The company offers five different levels of cover, based on the age and mileage of the car. These are: Bronze, Silver, Gold, Platinum and Platinum Plus.
54 | CarDealerMag.co.uk
W: warrantywise.co.uk/cardealer T: 0800 001 4551
‘Why should your dealership be using Warrantywise over other warranty providers? The reasons are plentiful.’ Warrantywise couldn’t be more welcoming to new dealer partners. A new business adviser will introduce you to the product and help you become familiar with it, before a personal account manager is introduced to look after you for the rest of your time with Warrantywise. But why should your dealership be using Warrantywise over other warranty providers? The reasons are plentiful. Endorsed by industry figurehead Quentin Willson, Warrantywise covers every single make and model of car on the market. All repairs are handled in-house for your peace of mind and the company has higher single repair limits than any other. Repairs can also be done at any VAT-registered
garage of your choice, meaning there are no customer limitations. Flexible labour rates are available, and roadside assistance and recovery are included free of charge. Warrantywise also offers bespoke tailored packages to suit your exact needs, along with competitive pricing and enhanced profit margins for extra dealer revenue. The company covers the cost of parts in pairs, wear and tear, and cover from day one, with no Insurance Premium Tax charged. Warrantywise aims to take all the hassle away from you, so you can focus on the business of selling cars and running your dealership. As if all this wasn’t amazing enough, Warrantywise is currently running an offer for new business customers, where if you switch to Warrantywise, you’ll receive £1,000! (Terms and conditions apply.) If you’re looking for a warranty company to work with, Warrantywise is the obvious choice. [CD]
CarDealerMag.co.uk | 55
Ask the experts.
Six of the best: Top
News, updates and guidance from some of the companies FINANCE
REFRESHMENTS
ACCIDENT MANAGEMENT
Focusing on education and accreditation is vital
Quality coffee will make customers feel welcome
Add revenue streams to your aftersales operation
CAR dealers and finance brokers are facing unparalleled levels of scrutiny from the Financial Conduct Authority and consumers regarding the promotion and sale of vehicle finance. It is, therefore, particularly important that retailers have the skills and knowledge necessary to qualify properly a customer’s needs, and deliver the facts about finance products in a clear, transparent manner. Every retailer should be enabling customers to make an informed decision about how they finance their car. Education and accreditation of standards can help finance retailers to do this. Alphera Financial Services has partnered with the Institute of the Motor Industry (IMI) to promote their new accreditation scheme for finance and insurance specialists, to improve sales standards and enhance transparency. A well-trained, accredited salesperson won’t just help to ensure regulatory compliance – but they can garner higher levels of customer trust, too. This high level of customer trust is becoming more of a necessity and not just an advisory in the car financing journey of a customer. Alphera is embracing this with their high standards and specialist salespeople at the forefront of that change. With the development of crucial skills and knowledge, Alphera is ensuring every financing agreement is signed by customers with confidence.
THERE are so many innovative solutions for making your car dealership experience an enjoyable one. Rule number one is to always be friendly with your approach to sales. No more pushy sales talk. Give them all the advice they need on their new car purchase and ask them questions about their financial budget or what type of car they are looking for. Let your customers know where your client facilities are on arrival to make them feel comfortable. Rule number two is to make your car dealership showroom a place to enjoy. Always offer your customers a hot or cold drink on arrival. Invest in a reliable coffee machine and water dispenser so your customers can serve themselves while they wait and discuss their options with you. Keep your customers hydrated at all times. Coffee machines are a great way of offering premium-quality coffee in-house. Rule number three is to provide nonstop entertainment and facilities that your customers can thrive in. Supply them with plug sockets to charge phones and laptops with, iPads with newly installed games to keep young ones occupied and provide lots of desk space for those that wish to work on the go. So, always remember to provide decent entertainment facilities, good in-house coffee, be friendly in your approach and make your showroom a place to remember!
WITH the automotive industry in a period of some uncertainty, competition is fierce among dealerships. While it’s tempting to focus on beating rivals to new sales, it could be more effective to concentrate on post-sale income; integrating a high-quality First Notification of Loss (FNOL) service to add valuable revenue streams to the aftersales department. A high-quality FNOL programme can deliver a significant commission for each customer that converts to a hire, but that is just a fraction of the possible business benefits – it’s simple to set up, too. FNOL can be one of the most important elements of the aftersales business, bringing in additional revenue opportunities, helping to retain customers and improving customer service in the process by redirecting both fault and non-fault accidents. Credit hire referrals can guide additional custom back into the aftersales team for parts sales and bodyshop referrals if repairs are needed during the claims process, keeping revenue within the business. Operating more closely with dealerships, white-labelled FNOL services can go beyond traditional programmes, handling calls on behalf of dealerships as a seamless extension, enhancing its customer service and even helping deliver new car sales leads back to the dealer in the event of a total loss.
Contact Alphera Financial Services on 03705 050 115 or go to alphera.co.uk
Telephone: 01473 384960 Email: sales@liquidline.co.uk
Contact AX on 01675 435216 or salessupport@ax-uk.com
56 | CarDealerMag.co.uk
Exploring the value of driver data.
Key Notes with Traka, p72
suppliers at your service who do great work with dealerships of all shapes and sizes TYRE SAFETY
CUSTOMER EXPERIENCE
SOFTWARE
New profiler indicates wheel alignment needs
Invest in initiatives to boost your business
Integration is the key to greater profitability
ABSOLUTE Alignment, the UK’s leading supplier of wheel-alignment equipment, has introduced to its range a new drive-over Tyre Profiler which instantly assesses tyre wear as vehicles enter the workshop. Customers receive a professional printout regarding the condition of their tyres, which also indicates whether a full wheel alignment is required on the vehicle. This quick and easy ‘health check’ is extremely popular with both motorists and garage owners. Suitable for small or large workshops, a floor or in-ground mount is available to suit every outlet and with no moving parts it ensures a safe working environment. Chris Dear, Absolute Alignment’s technical director, said: ‘The Tyre Profiler is an efficient way to work, giving customers peace of mind and workshops the ability to easily identify any potential problems on a car, such as the need for a four-wheel alignment, often before it becomes an issue. ‘With the Tyre Profiler, any under- or over-inflated tyres are also picked up on, so that tyre pressures can be corrected, to make sure stopping distances are exactly what they should be for maximum safety on the road.’ Fully integrated with the Bluetooth 3D wheel aligner, the Tyre Profiler works with a registration look-up system and as part of the remote two-minute quick check that the 3D wheel aligner offers.
THE need to increase sales is primarily driven by the creation of new products and services. But customers no longer buy just products or services; their purchases buy into an idea or an experience. Expectations for customer experiences continue to increase across every sector. As one of the UK’s leading CX consultancies, Douglas Stafford recommends investing in customer experience initiatives to improve your business. Your customer experience needs to be convenient, immediate and seamless across every touchpoint that your business provides. Taking an objective look at your business and its customer experience is the first step: Did you receive a positive experience? Which elements worked, and which need work? How does your customer experience compare to your competitors? Which touchpoints ran smoothly and which didn’t? Douglas Stafford offers services for all aspects of customer experience management, from market research, mystery shopping and customer journey mapping, to brand standards audits and evidence-based training. A positive customer experience will lead to increased sales, inspire brand loyalty and encourage repeat custom. It takes time and commitment to invest in your customer experience, but it has become an essential practice.
WORKING in car dealerships, there was always conflict between choosing a system that specialised in one area compared to our Dealer Management System (DMS) that did a great general job. For example, it was difficult to get meaningful enquiry reports out of my DMS, but I could add a great showroom system that would. I knew sales would increase but there was always internal conflict to keep everything in one place using our DMS. The extra work double-keying, and additional charge, was the resistance that was hard to overcome. What is encouraging in recent years is the openness for DMS providers to integrate to enable a business to benefit. The advice I have is to look at areas you would like to improve. Do not make do with what you have. Firstly, check your DMS. It might have moved forward since it was installed and could have functionality you have not unlocked. Secondly, there are some great tools out there that can help. Some, like ours, can improve profit by over £100k so are worth 30 minutes to review. At Vautostock we will always look at your current systems and are open to integration. It can be a showroom system, valeting system or DMS. If it can reduce log-ins, improve vehicle preparation and sales, we know it is worth it.
Visit www.absolutealignment.co.uk for further information.
Email: info@douglasstafford.com Phone: 02392 830011 Website: www.douglasstafford.com
More information at www.vautostock.co.uk
CarDealerMag.co.uk | 57
Data file.
Thestatistics
| SMMT SALES DATA | TAKING STOCK | CHALLENGES AHEAD
New car registrations hold steady ahead of September’s 69-plate
T
he UK new car market remained steady in August, with just 1,521 fewer cars registered than in the same month last year, according to the Society of Motor Manufacturers and Traders. Registrations dipped by 1.6 per cent as falling demand for diesel and plug-in hybrid vehicles continued to affect the overall market. Private and fleet sector registrations declined in the month – down 1.7 per cent and 3.5 per cent respectively – as demand in the small-volume business segment increased by some 962 units. Meanwhile, diesel registrations fell for the 29th month in a row, albeit at a slower pace than recently experienced (12.2 per cent), while petrol demand remained stable – up 1.0 per cent. Zeroemission cars saw the biggest percentage growth – up 377.5 per cent – to 3,147 units as new models and some pent-up demand boosted registrations, while 4,014 hybrid-electric cars also joined UK roads: an uplift of 36.2 per cent. However, the decline in plug-in hybrid registrations continued – down 71.8 per cent to just 907 vehicles. Although new powertrain technologies are now rapidly coming
to market, the SMMT said much more needed to be done, and quickly, to address consumer concerns over cost and infrastructure to make the emerging technology more accessible, as demand was still lagging behind ambitious government targets. Mike Hawes, SMMT chief executive, said: ‘August is typically the new car market’s quietest month, so the huge increase in EV registrations is very visible but especially welcome. It’s great to see consumers respond to the massive industry investment made over many years. While this is encouraging, these figures also show the scale of the challenge ahead. It’s a long road to zero, and while manufacturers can deliver the technology, they can’t dictate the pace of uptake. ‘To support a smooth transition and deliver environmental gains, we need a long-term government commitment to measures that give consumers confidence to invest in the latest technologies that best suit their needs.’ Sue Robinson, director of the National Franchised Dealers’ Association, said: ‘The minor decline in new car sales was highly anticipated, as these figures were
against a record August in 2018 boosted by the introduction of the WLTP emissions regulation. ‘Although the introduction of the new Real Driving Emissions testing from September should not have as strong an effect on the market as WLTP last year, the market may remain slightly distorted over the next months.’ Noting that sales of pure-electric vehicles had continued to rise, Robinson added: ‘Retailers are making important efforts and investments to meet the fast-growing consumer demand for EVs despite supply constraints. There are attractive deals on the market for vehicles of all fuel types, but the current uncertain political climate undermines consumer confidence.’ Echoing her comments, Ian Plummer, commercial director at Auto Trader, said: ‘We shouldn’t be focused on August. More importantly, it is about how the market fares in September – a key platechange month. The market will have to continue to contend with the ongoing Brexit negotiations, and as things heat up politically, uncertainty remains, which is not helping business or consumer confidence.’
SMMT sales data Aug/year to date
5
Top
Most-improved manufacturers in August
Chevrolet +3,100% DS +113% Porsche +86% Jeep +77% Lexus +57%
5
Bottom
Worst-performing manufacturers in August
Alpine -89% Suzuki -52% Subaru -48% Bentley -40% Abarth -37%
Electric vehicle milestone as Tesla Model 3 shakes up data TESLA’S Model 3 was the third most popular new car in the UK in August – the first time an electric car has appeared in the top 10 best-selling car charts. The Model 3 was officially listed as ‘other’ behind the Ford Fiesta (3,978 registrations) and VW Golf (3,439). Tesla registered 2,082 Model 3s in August after what is likely to have been a huge delivery from America. The car has been thwarted by numerous delays in 58 | CarDealerMag.co.uk
production after Elon Musk’s firm struggled to ramp up manufacturing to cope with demand. Most of the UK Model 3 buyers would have placed £1,000 deposits when Tesla put it on sale in March 2016. By August 2017, there were more than 450,000 reservations worldwide. Tesla doesn’t officially register its sales data with the Society of Motor Manufacturers and Traders.
Smart
Volvo
-23% August 2019 Marque Abarth Alfa Romeo Alpine Audi Bentley BMW
2019
+20%
August 2018
% market share
2018
Year-to-date (YTD)
% market share
% change
2019
% market share
2018
% market share
% change
118
0.13
187
0.20
-36.90
2,226
0.15
3,531
0.22
-36.96
208
0.22
155
0.16
34.19
2,305
0.15
2,953
0.19
-21.94
12
0.01
109
0.12
-88.99
126
0.01
120
0.01
5.00
9,062
9.79
7,581
8.06
19.54
100,513
6.62
110,304
7.02
-8.88
96
0.10
160
0.17
-40.00
1,062
0.07
1,239
0.08
-14.29
4,853
5.24
5,998
6.37
-19.09
104,072
6.85
108,372
6.89
-3.97 89.66
32
0.03
1
0.00
3,100.00
55
0.00
29
0.00
Citroen
1,798
1.94
1,786
1.90
0.67
35,655
2.35
33,464
2.13
6.55
Dacia
1,031
1.11
811
0.86
27.13
21,044
1.39
15,794
1.00
33.24
DS
187
0.20
88
0.09
112.50
2,286
0.15
4,200
0.27
-45.57
Fiat
881
0.95
1,099
1.17
-19.84
20,105
1.32
23,331
1.48
-13.83
Chevrolet
10,764
11.63
11,208
11.91
-3.96
155,602
10.24
172,777
10.99
-9.94
Honda
2,592
2.80
3,612
3.84
-28.24
30,641
2.02
36,905
2.35
-16.97
Hyundai
Ford
2,686
2.90
2,689
2.86
-0.11
54,251
3.57
59,696
3.80
-9.12
Infiniti
34
0.04
44
0.05
-22.73
275
0.02
623
0.04
-55.86
Jaguar
1,049
1.13
1,242
1.32
-15.54
23,312
1.53
21,628
1.38
7.79
411
0.44
232
0.25
77.16
4,099
0.27
4,032
0.26
1.66
Kia
3,452
3.73
3,552
3.77
-2.82
63,799
4.20
62,427
3.97
2.20
Land Rover
0.94
Jeep
1,677
1.81
2,202
2.34
-23.84
47,922
3.15
47,477
3.02
Lexus
424
0.46
270
0.29
57.04
8,974
0.59
7,962
0.51
12.71
Lotus
19
0.02
18
0.02
5.56
162
0.01
163
0.01
-0.61
54
0.06
49
0.05
10.20
665
0.04
896
0.06
-25.78
Mazda
1,509
1.63
1,589
1.69
-5.03
25,724
1.69
25,992
1.65
-1.03
Mercedes-Benz
5,040
5.44
4,868
5.17
3.53
110,086
7.25
107,605
6.85
2.31
MG
663
0.72
586
0.62
13.14
7,989
0.53
5,685
0.36
40.53
Mini
1,819
1.96
1,867
1.98
-2.57
38,052
2.51
39,343
2.50
-3.28
Maserati
715
0.77
781
0.83
-8.45
11,504
0.76
12,425
0.79
-7.41
Nissan
2,328
2.51
2,480
2.64
-6.13
61,262
4.03
68,373
4.35
-10.40
Peugeot
3,608
3.90
3,966
4.21
-9.03
53,618
3.53
54,516
3.47
-1.65
Porsche
646
0.70
347
0.37
86.17
8,208
0.54
9,979
0.63
-17.75
Renault
1,872
2.02
1,871
1.99
0.05
36,172
2.38
39,703
2.53
-8.89
Seat
3,610
3.90
3,624
3.85
-0.39
46,779
3.08
45,209
2.88
3.47
Skoda
2,802
3.03
2,772
2.95
1.08
49,368
3.25
50,715
3.23
-2.66
Smart
212
0.23
277
0.29
-23.47
3,742
0.25
4,643
0.30
-19.41
SsangYong
80
0.09
62
0.07
29.03
1,251
0.08
1,819
0.12
-31.23
Subaru
52
0.06
100
0.11
-48.00
1,518
0.10
1,839
0.12
-17.46
Suzuki
2,092
2.26
4,336
4.61
-51.75
25,919
1.71
29,319
1.87
-11.60
Toyota
4,205
4.54
3,620
3.85
16.16
69,023
4.54
66,651
4.24
3.56
Vauxhall
4,864
5.25
5,078
5.40
-4.21
109,826
7.23
114,809
7.30
-4.34
Volkswagen
11,334
12.24
11,255
11.96
0.70
137,408
9.05
141,402
9.00
-2.82
Volvo
1,268
1.37
1,059
1.13
19.74
35,545
2.34
29,045
1.85
22.38
121
0.13
221
0.23
-45.25
1,774
0.12
1,928
0.12
-7.99
2,293
2.48
242
0.26
847.52
5,097
0.34
3,063
0.19
66.41
-1.62
1,519,016
Mitsubishi
Other British Other imports Total
92,573
94,094
1,571,986
-3.37 Figures supplied by SMMT
CarDealerMag.co.uk | 59
LCV news.
Fullyloaded
| LIGHT COMMERCIAL VEHICLES | FLEET | REVIEWS |
SURVEY
TASTE TEST
Transit Custom proves top of the regional pops
Brown is triumphant in the battle of the sauces by JOHN BOWMAN john@blackballmedia.co.uk
HIGHER-SPEC vans are finding favour with buyers in the secondhand sector, according to Click Dealer, with new data showing that the Ford Transit Custom is the most popular model in most of the UK’s regions. Analysis of 411 of its dealers from January 2018 to the second quarter of 2019 showed that the Ford van was the best seller in five of the 12 regions – which include Scotland, Wales and Northern Ireland – and the second best seller in another five. The Custom is a smaller version of the Transit, and generally speaking, where the Custom wasn’t the best seller, the standard Transit was, so Ford has a stranglehold on the top sellers’ spot, said the automotive software provider. Sophie Bates, data analyst at Click Dealer, said: ‘Although we see variation in make-models in the top 10s for each region, it’s interesting to see that Ford Transit/Transit Custom are the highest selling models for our dealers in 80 per cent of UK regions.’ Smaller vans such as the Citroen Berlingo or Transit Connect did reasonably well but the Vauxhall Astra appeared just once in the top 10 sellers, in the Newcastle region. Bates added: ‘Greater London sees the greatest number of regional van sales, accounting for 37 per cent of all van sales.’ 60 | CarDealerMag.co.uk
T
he answer to one of life’s most perplexing questions has finally been revealed – thanks to a ‘crowd-saucing’ campaign by Fiat Professional. The company polled 1,000 UK professional van drivers to find out which sauce was the more popular companion to a bacon sandwich ahead of a hard day’s graft – red or brown – and brown was crowned the nation’s fruity favourite, leaving red sauce playing ketch-up… According to the survey data, 40 per cent of van drivers said brown sauce was the daddy, while 37.5 per cent rated tomato sauce as their condiment of choice. The remaining 22.5 per cent of respondents bottled it, saying they preferred their bacon with no sauce at all. But younger drivers relish the red stuff, with ketchup streaking ahead among those under 30, leaving brown sauce in its wake. Forty-eight per cent of those under 30 said red was best, with only 30 per cent favouring the traditional brown alternative. The no-sauce option was more popular among female drivers, with
30 per cent saying they liked their bacon without as opposed to just 19 per cent of male drivers. Of the female van drivers surveyed, 36 per cent preferred brown sauce and 34 per cent preferred red. Richard Chamberlain, country manager from Fiat Professional, said: ‘Many van drivers like to start their day with a traditional bacon butty, so we’ve made life easier for the transport cafes and roadside traders that fuel the nation’s tradespeople by finding an answer
to a question that has divided the nation for years. ‘Brown sauce is king, but only by the smallest of margins – although with younger drivers favouring red, it could be that the bottle gets tipped the other way in the not-toodistant future.’ Fiat Professional is the commercial vehicle arm of Fiat Chrysler Automobiles and has four core models in the UK – Fiorino, Doblo, Talento and Ducato – along with a range of approved conversions.
Top-selling LCVs in August Mercedes-Benz Sprinter 3,104 Ford Transit Custom 3,074 Ford Transit 2,118 VW Transporter 1,560 Renault Trafic 1,118
Source: SMMT
Mercedes-Benz Vito Ford Transit Connect Citroen Berlingo Ford Ranger VW Crafter
1,029 800 696 695 632
LCV registrations, p62
‘Another month of growth for the new van market is welcome news.’ SMMT chief Mike Hawes on the latest LCV registrations, p62
Sliding doors WITH CRAIG CHEETHAM
A look at the world of buying and selling vans and pick-ups
Vans are leading the EV charge, but we need better infrastructure
A
ccording to official government figures, the UK’s electric vehicle market grew by 19 per cent last year, with a new EV being registered every nine minutes on average. Leading that charge has been the van market, with one in every 50 new vans being an EV in 2018 – a trend that looks set to grow further this year. Indeed, it’s vans that often make the most sense. Delivery companies working in urban areas need to be seen to be green, and a plug-in van is an obvious choice when it comes to offsetting carbon emissions. There are cost savings too, with operators benefiting from reduced fuel bills and lower maintenance costs. Yet even now, businesses running a fleet of EVs face a challenge. For the 135,000 EVs on the UK’s roads, there are a mere 13,000 public charging stations. That’s not an issue for private motorists, many of whom have a home charger installed when they first buy an electric car, but for van fleets that operate around the clock, the lack of infrastructure still remains a barrier. With diesel-powered vans, the need to drive around the clock, on demand, and to wherever the load needs to go is straightforward. You need a van and a driver, and that’s it. But with electric deliveries, charger locations, charging downtime and overall range need to be considered upfront. It’s all very well offsetting the carbon emissions of a delivery, but customers still want their goods delivered in a timely and efficient manner. In terms of widespread adoption, though, the signs are there. Parcel giant UPS has already confirmed that its entire London delivery fleet will be electric by the end of this year and to do so it has created its own ‘charging grid’, operating from a depot in north London. Peter Harris, director of sustainability at UPS Europe, said: ‘We certainly believe this to be groundbreaking. The development will herald a new generation of sustainable urban delivery services both here in London
and in other major cities around the world.’ The company’s new ‘intelligent’ charging technology works by spreading the same amount of electricity between vehicles more efficiently. Although all can be plugged into charging points simultaneously, a computer staggers which vehicles charge when, ensuring that the vans that are needed soonest will be the ones that are ready to go. It’s complex technology, but rooted in a blindingly simple idea – and one that other delivery companies will be watching closely. One major fleet that will be keeping a close eye on the UPS evolution is Boots. The Nottingham-based chemist has just begun a trial of five Renault Kangoo EVs operating from its base in Beeston, delivering prescription medicines to patients’ homes across Nottinghamshire and Derbyshire. Boots UK’s head of pharmacy supply chain, Eddie Storr, said: ‘Over the past six months, we have achieved significant mileage reductions through better route planning, and the next step on our journey to reduce our carbon footprint is to introduce zero-emission delivery vehicles. ‘Following the launch in Nottingham, we are looking at other locations around the country to expand our electric fleet.’ Boots – along with many others – will only commit, though, if electric vans can be used without any sense of compromise, and in major urban areas such as Greater London a UPS-style depot system works well. In less densely populated areas, the infrastructure needs to catch up. With a comprehensive charging network, there’s no reason why short- to medium-distance deliveries can’t all be electric, with the air quality benefits that brings. The van manufacturers know this, as the top three UK sellers – Ford, VW and Vauxhall – all have plug-in vans on sale or imminent. And that’s just the tip of the iceberg, with broader EV ranges to come from all three. It’s about time the public infrastructure caught up so electric vans become more common – and cheaper as a result.
Craig Cheetham is an experienced automotive journalist with specialist knowledge of the LCV sector.
Turn over the page for the latest LCV registrations CarDealerMag.co.uk | 61
LCV news. AUGUST REGISTRATIONS
New LCV market soars by 41 per cent helped by deals THE UK new light commercial vehicle market rose by 41 per cent in August, according to the latest figures from the SMMT. The market has grown in every month of 2019, with 23,120 new vehicles registered in August for use on UK roads, as operators respond to regulatory changes and take advantage of some
compelling deals on the latest models available in what is usually one of the year’s quietest months. The only segment that experienced a decline was 4x4s – down 34.7 per cent – while pick-ups, small, medium and large vans all experienced double-digit growth. Mike Hawes, SMMT chief executive, said:
‘Another month of growth for the new van market is welcome news for the automotive sector as it faces multiple challenges simultaneously. It is important to remember, however, that any percentage increase will be on a much smaller volume market in August, given it is arguably the quietest month of the year.’
Registrations of new commercial vehicles less than 3.5 tonnes August 2019 Marque
2019
August 2018
% market share
2018
Figures supplied by SMMT
Year-to-date (YTD)
% market share
% change
2019
% market share
2018
% market share
% change
Ford
7,259
31.40
5,685
34.68
27.69
82,084
33.45
78,189
35.48
4.98
Mercedes
4,751
20.55
2,095
12.78
126.78
26,166
10.66
15,415
6.99
69.74
2,966
12.83
1,839
11.22
61.28
28,283
11.53
26,472
12.01
6.84
Renault
1,776
7.68
557
3.40
218.85
14,185
5.78
9,430
4.28
50.42
Citroen
1,413
6.11
1,011
6.17
39.76
18,397
7.50
17,303
7.85
6.32
Vauxhall
1,211
5.24
1,193
7.28
1.51
19,173
7.81
15,697
7.12
22.14
Peugeot
1,206
5.22
1,704
10.39
-29.23
21,365
8.71
23,064
10.46
-7.37 14.22
Volkswagen
Fiat
603
2.61
449
2.74
34.30
6,448
2.63
5,645
2.56
Isuzu
436
1.89
197
1.20
121.32
2,981
1.21
2,907
1.32
2.55
Nissan
378
1.63
508
3.10
-25.59
7,862
3.20
8,383
3.80
-6.21
Mitsubishi
295
1.28
291
1.78
1.37
7,309
2.98
6,435
2.92
13.58
Toyota
274
1.19
287
1.75
-4.53
4,977
2.03
6,206
2.82
-19.80
Iveco
173
0.75
222
1.35
-22.07
1,811
0.74
2,029
0.92
-10.74
MAN
96
0.42
120
0.73
-20.00
974
0.40
381
0.17
155.64
Renault Trucks
92
0.40
65
0.40
41.54
913
0.37
981
0.45
-6.93
LDV
74
0.32
56
0.34
32.14
397
0.16
291
0.13
36.43
Isuzu Trucks
52
0.22
41
0.25
26.83
536
0.22
406
0.18
32.02
Land Rover
32
0.14
31
0.19
3.23
914
0.37
779
0.35
17.33
SsangYong
18
0.08
32
0.20
-43.75
433
0.18
202
0.09
114.36
Fuso
12
0.05
4
0.02
200.00
128
0.05
100
0.05
28.00
Hyundai
3
0.01
0
0.00
0.00
64
0.03
25
0.01
156.00
Dacia
0
0.00
7
0.04
0.00
0
0.00
55
0.02
0.00
0
0.00
0
0.00
0.00
0
0.00
4
0.00
0.00
23,120
100.00
16,394
100.00
41.03
245,400
100.00
220,399
100.00
11.34
Great Wall Total light CV
Registrations of new commercial vehicles 3.5 tonnes to 6.0 tonnes August 2019 Marque
2019
Peugeot
August 2018
% market share 144
2018
Figures supplied by SMMT
Year-to-date (YTD)
% market share
% change
2019
% market share
2018
% market share
% change
1,844
30.75
-16.92 -8.10
32.07
205
33.23
-29.76
1,532
31.70
Mercedes
113
25.17
184
29.82
-38.59
1,066
22.06
1,160
19.34
Fiat
110
24.50
79
12.80
39.24
1,311
27.13
1,249
20.83
4.96
Ford
37
8.24
76
12.32
-51.32
149
3.08
1,259
20.99
-88.17
Iveco
22
4.90
48
7.78
-54.17
338
6.99
228
3.80
48.25
Citroen
12
2.67
2
0.32
500.00
129
2.67
75
1.25
72.00
Volkswagen
5
1.11
4
0.65
25.00
56
1.16
47
0.78
19.15
MAN
2
0.45
4
0.65
-50.00
61
1.26
14
0.23
335.71
Vauxhall
1
0.22
8
1.30
-87.50
122
2.52
61
1.02
100.00
Renault
1
0.22
5
0.81
-80.00
49
1.01
50
0.83
-2.00
Isuzu Trucks
1
0.22
1
0.16
0.00
13
0.27
8
0.13
62.50
Nissan
1
0.22
0
0.00
0.00
2
0.04
0
0.00
0.00
Renault Trucks
0
0.00
1
0.16
0.00
5
0.10
2
0.03
150.00
Total heavy CV
449
100.00
617
100.00
-27.23
4,833
100.00
5,997
100.00
-19.41
62 | CarDealerMag.co.uk
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Workshop.
Aftermarket
SERVICING & REPAIRS | PRODUCT NEWS | PEOPLE & PLACES
MOTs
New connection rules are hailed
POWER OF THREE
Bracknell site is added to Quick Lane network by JOHN BOWMAN john@blackballmedia.co.uk
MOT garages will soon see the benefit of equipment that connects directly to the testing service, according to the DVSA. From October 1, anyone buying a roller brake tester must ensure it can connect to the service. The DVSA has worked with roller brake tester manufacturers to develop software that will let their products connect to the MOT testing service. Connected equipment will save time, reduce the risk of error in entering MOT results and help to reduce the risk of fraud, it said. Chris Price, DVSA head of MOT policy, said: ‘We’re bringing in connected equipment to modernise testing in MOT garages and reduce the potential for mistakes. It will make testing quicker, more accurate and give motorists greater confidence in the quality of testing. Garages already using this equipment have seen benefits to their business.’ David Garratt, chief executive of the Garage Equipment Association (GEA), said: ‘The main concern for GEA members is to improve the quality of MOT equipment and remove any possibility of human error in the reporting procedure. ‘Connecting MOT test equipment is a very logical step for us as it removes any miskeying by the operator and speeds up the process.’ 64 | CarDealerMag.co.uk
Quick Lane’s new site in Bracknell
Q
uick Lane Tyre & Autocentre has opened a site in Bracknell – its third franchised site in the UK. The 7,257 sq ft operation started up just weeks after Quick Lane’s Prestwich workshop began welcoming customers, and it will be followed by a fourth in Colchester later this year. Based on the Western Trade Centre, it has seven bays including a dedicated MOT area, and has taken over the site of a newly converted trade counter warehouse unit with a glazed entrance plus designated parking. The new site is owned by the same franchisee behind Quick Lane Reading, which opened in January 2019. John Dines, UK operations director for Quick Lane, said: ‘As Quick Lane continues to grow across the UK and Europe, we are committed to bringing our highly professional, transparent service to our customers in areas with high retail footfall. ‘Quick Lane Bracknell is ideally situated to deliver convenient automotive servicing and
maintenance that fits around the busy lives of local people, giving them back the one thing they value most – time.’ The Reading base recently invested £40,000 in new MOT equipment, and Quick Lane said it planned to further expand its network in the UK and Germany. Quick Lane is a global fastfit operation with around 1,000 workshops worldwide operating on a licence and franchise basis. The company was born out of consumer research regarding motorists‘ needs from automotive repair centres. It said that drivers cited transparency, convenience,
confidence and a stress-free environment as their key priorities. This created the Quick Lane business ethos: to provide ‘convenience with confidence’. Quick Lane offers 13 maintenance and light repair services with tyres and MOT tests as the catalyst to the repair and/or replacement of key parts around the wheel. The centres place technology at the heart of the customer repair journey, offering a unique and integrated online customer experience with a dynamic digital presence. As Quick Lane continues to expand globally, the company is consistently seeking new franchise opportunities.
Poor weather helps to drag down Halfords sales HALFORDS suffered lower-than-expected summer sales because of poor weather and weaker consumer confidence, it said. The retailer added that it expects ‘political and economic uncertainty’ to affect customers making bigger purchases over the rest of the year. It saw like-for-like group revenues slump by 3.2 per cent for the 20-week period to August 16 after it was
weighed down by weak motoring sales. The company also warned investors that profits would be at the lower end of market expectations, pulling down pre-tax profit forecasts to a range of £50m-£55m after previously stating a £50m-£59m range. However, the company also said that it had seen ‘encouraging signs of progress’ after introducing a new strategy last year.
IAAF EVENT
Golf challenge is a very close contest THE Independent Automotive Aftermarket Federation (IAAF) successfully hosted its second Team Golf Challenge at The Abbey Hotel, Redditch in aid of automotive trade charity Ben. More than 10 teams navigated the championshipstandard course in the heart of Worcestershire. In what was a very close contest, the team from West Midlands-based motor factor Midwest Motor Factors emerged as winners, with the Robert Bosch team runners-up. In addition to the winners and runners-up trophies, there were prizes for ‘longest drive’, which went to Tom James from the sales-i team, and ‘nearest
the pin’, which went to Andrew Tuby from the Sogefi team. The best individual score was recorded by Martin Gardener of the Robert Bosch team and Tom Irving from Melett picked up the winner’s prize in the hotlycontested putting competition. The Sogefi Filtration team emerged the overall winners and were granted four free places at the IAAF annual awards dinner in December. IAAF chief executive Wendy Williamson said: ‘We were extremely fortunate with the weather and the camaraderie among the teams was clear to see. Our popular golf events offer fantastic networking opportunities, in addition to raising much-needed funds for our industry charity, Ben.’
From left, Fuzz Townshend, prize winner Danny Martin and Matt Neal at the Cheltenham trade show
EVENT
Racecourse debut for show is an odds-on hit T
he Parts Alliance has heralded its third trade show of 2019 as a major success. The event brought customers and suppliers in the Cheltenham area together to socialise and network. Held on September 5, it was the first time the trade show had been to Cheltenham Racecourse. Seminars and technical content were provided by Mann Filters, Yuasa and Comma. There were exclusive show offers and prizes to be won, with complimentary food and drink served as special guests Fuzz Townshend, Matt Neal and Daniel Rowbottom mingled with the crowd. All that guests had to do to be in with a chance of winning was get a card stamped as they made
by DAVE BROWN @CarDealerDave
their way round all of the suppliers. Townshend and Neal announced the winners and presented the prizes during a draw at the end of the show. Among the goodies was £2,495-worth of EAE workshop equipment, which included an EE-488OID tyre changer and EE3096AV2 wheel balancer, and was won by Danny Martin of Auto Boss in Swindon. Danny said: ‘We came to see the suppliers and what we’ve learnt just by talking to all the different manufacturers here made it a really worthwhile night, and then my
name was pulled out of the hat for this amazing prize – you can’t top that! The new kit from EAE will replace our tired old machines, so we can’t wait to get this new equipment installed and start earning some money from it.’ Simon Moore, head of marketing at The Parts Alliance, said: ‘We’re delighted by the positive feedback we’ve had for this new venue, as well as the training sessions on offer.’
IPO highlights IGA’s counterfeit parts campaign THE Independent Garage Association has collaborated with the Intellectual Property Office to highlight the dangers of counterfeit and consumer-supplied car parts. The IGA’s section of the IPO’s Crime and Enforcement Report 2018-2019 explains how proving the authenticity of a part can be difficult if it isn’t bought directly from the original equipment manufacturer, and the risks posed by consumers asking a garage to fit a part of unknown origin.
The report also highlights the IGA and IPO’s counterfeit car parts campaign that provides advice to consumers on how to identify fake vehicle parts, tips for buying online, and how to report counterfeit goods. Frank Harvey, IGA head of member services, said: ‘We are continuing to work with the IPO to raise awareness of the dangers to both garages and consumers, and we maintain that garages should always supply and fit parts themselves to guarantee provenance.’ CarDealerMag.co.uk | 65
Data File.
Ask Lawgistics .com
Car Dealer Club lawyers at Lawgistics answer dealers’ legal questions. Join for £49.99 a year to get advice like this when you need it
Simple ways to keep yourself out of trouble Q A
I am a car dealer who also has a workshop that does MOTs. Are there any legal compliance issues that I need to be aware of? We can answer that in two parts. Firstly, second-hand car sales. Local trading standards officers seems to be taking a keen interest in cars advertised for sale with outstanding safety recalls issued by manufacturers. They argue that by failing to mention in any advert and at the point of sale that the vehicle has such a recall, the seller is committing an offence under the Consumer Protection from Unfair Trading Regulations 2008. They say it is a misleading omission and that if it were disclosed, it would materially affect the decision of a potential buyer as to whether to purchase. However, it’s a 30-second job to see if a car has a safety recall, so Lawgistics advises making the check before taking a second-hand car into stock. Simply log on to the gov.uk website to check a car’s MOT and the MOT history check will
tell you if there is such a recall outstanding. This check can be done either from a laptop in the showroom or on a mobile at the auction site. If there is a recall, then you MUST disclose it, or have it corrected prior to advertising (ideally) and sale (certainly). Of course, knowing this in advance could save you a lot of wasted time. Some manufacturers have long waiting times for recalls to be undertaken. Certainly, you will not want a consumer rejecting a car – sometimes long after the sale – simply because they were not made aware of an outstanding safety recall. Nor do you want to be interviewed by trading standards or be standing in the magistrates’ court facing a hefty fine and bad publicity. This is serious because here at Lawgistics we are seeing traders getting prosecuted. Secondly, the DVSA is coming down hard on MOT testers and the authorised examiners for errors made when recording chassis numbers and
ADVICE
number plates. A tester MUST read and record each number directly from the vehicle at the point of an MOT and not rely on documentation or computer records. We have had four such instances where numbers have been recorded incorrectly because of mistakes on paper or electronic records – mistakes that were created by others and not the tester. And from what we are told, the DVSA turns up unannounced, interviews both the tester and the examiner, and gives the impression that it is nothing to be hugely concerned about. However, in each case, the proposed sanction was the suspension of the tester and examiner, which can have serious implications for the business. Don’t rely on being able to subsequently persuade the DVSA to impose a lesser sanction. Simply ensure that the numbers are recorded when undertaking the MOT and such errors/ trouble can be easily avoided!
JOIN CAR DEALER CLUB AND GET ALL THESE BENEFITS WORTH £1,000s FOR Claim your dealership’s FREE website audit! Save £100 on your first bill when you join Click Dealer! Click Dealer is a performance partner for dealerships, with over 15 years’ experience and a portfolio of award-winning, integrated products and services, including websites, SEO, DMS, lead management, online sales software and a reputation management platform. As the digital dealership experts in an industry in which inertia has been a long-standing problem for forward thinking, Click Dealer has continued to innovate to stay ahead of its competitors and provide products and services for used vehicle dealers before
they even know that they want them! n Make 2019 your year by ensuring that your website and digital showroom is the very best that it can be! Click Dealer’s team of in-house experts will look over your website and advise on any recommended changes to improve your visibility online! n At Click Dealer, we ALWAYS put our customers first! That’s why we’d like to offer Car Dealer Club members £100 off their first bill when they take out any of our products or services!
Offers will be running until the end of the year
66 | CarDealerMag.co.uk
A free telephone consultation and other great benefits, too n A free telephone consultation worth £100. n Lawgistics’ Basic package worth £95. n Twenty-five per cent off the ‘pay-on-use’ legal helpline and casework service. n Up to 25 per cent off any stationery or warranty products. n Upgrade the Basic package and receive £100 off the Small Business package or £250 off the Professional package.
Buy and sell trade stock quickly and profitably Cartotrade.com is the new online trade-to-trade platform set up by the ex-management team of Autotrade-mail. Cartotrade’s focus is on the integrity, security and accessibility of stock, complemented by a simple yet innovative platform that allows its members to buy and sell trade stock quickly and profitably. To see the benefits, Car Dealer Club members can have an extended, no-obligation, four-week free trial*. If, after the free trial, a Car Dealer Club member wishes to subscribe, they then get their next month completely free, without contracts and never a price increase. * Subject to vetting
WANT TO UPGRADE?
WHY I LOVE LAWGISTICS
Any legal worries are over now we’ve decided to sign up WITH the law as it applies to car dealers seemingly getting more complicated and changing all the time, it can be difficult knowing what your rights are. That’s exactly why Route 57, based in Warrington, Cheshire, signed up to the service around six months ago. The firm specialises in wheelchair-adapted vehicles and has done so for around five years, although the family-run business has been going for 50 years.
Ian Gibson, a partner at the firm, said he joined Lawgistics after worrying about whether the business was fully legal and compliant. ‘We had nothing in place in terms of legal representation, but I took out the plan with Lawgistics after years of worrying,’ he said. ‘The law is now so extensive – particularly in relation to selling cars – and it changes all the time. You would need an HR team just to keep you
legal, whereas I can use Lawgistics and should there be any changes in the law, it will contact us.’ Despite not having had to use Lawgistics yet, Gibson described the decision to sign up as a ‘no brainer’. He said: ‘Lawgistics is great and it just gives us reassurance and the knowledge so that we can remain law-abiding and protected. You only have to have one case go wrong and it can be expensive. It really is a nobrainer signing up to Lawgistics.’
The law on title and possession is complicated...
Q A
Can good title pass in a stolen car? The general rule is ‘no-one can give what he does not have’, so legal title, or ownership in goods, can only pass from one who has the right to pass it on per section 21 of the Sale of Goods Act 1979. In the case of Rowland v Divall (1923), a car dealer bought a car from a seller. He painted the car, placed it in his showroom and sold it to a customer for a higher price. It turned out the car had been stolen; the police seized
it and returned it to its original owner. Neither the car dealer nor the seller had any idea the car had been stolen. The dealer returned the customer’s money and brought a claim against the seller. The court held the seller did not have the ‘right’ to sell the goods, as he did not obtain ‘good title’ from the thief. Therefore, ownership remained with the original owner. In turn, this is reflected in section 12 (1) of the 1979 act, which states ‘…there is an implied term on the part of the seller that in the case of a sale he has a right to sell the
goods…’ However, conferring good title and the ‘right to sell’ can prove problematic. So, in the case of a stolen car sold to an innocent purchaser, it must follow that good title does not usually pass. Thus, the original owner’s interest in the goods is protected, often leaving the innocent purchasers without redress. That said, the law on title and possession is complicated and there are certain exceptions and caveats to the general rule. If in doubt, speak with Lawgistics.
JUST £49.99 Exclusive 10 per cent discount on your tailormade trade insurance
Discount on software and free health check app from Dragon2000
Personalised promotional warranty material from the WMS Group
At Unicom, we’ve been safeguarding our clients with the best protection policies for more than 20 years – so, no matter what role your business plays in the motor trade, we can have you covered for every possible risk. From road risks to legal cover, your motor trade insurance can be tailored to suit your individual needs. It’s our job to make sure that you get the best price for the cover that you want.
Dragon2000’s dealer management system is one of the most versatile and easy-to-use products on the market. The software can help manage supplier and customer details, help you keep on top of your costs, and ensure that your business is running as smoothly and as profitably as possible. Car Dealer Club members are eligible for a 10 per cent discount on their first year of a Dragon2000 software subscription – and they get the free Vehicle Health Check app too.
WMS Group are one of the UK’s leading business-to-business car warranty suppliers, providing extended warranty cover and other motoring protection to more than 3,500 dealerships across the UK. Club members who sign up to our flagship used car scheme Safe and Sound (endorsed by former Stig and Hollywood stunt driver Ben Collins) will receive a promotional warranty video, starring Ben and tailored round your dealer’s needs, at zero cost. We’ll even come out to your dealership to film it!
Dragon2000
LAWGISTICS’ Basic membership – which you receive as a member of Car Dealer Club – is a cracking deal, but what if you need something that has extra clout? Larger dealer groups or a dealer embroiled in a big legal battle may require some more firepower, and the good news is that club members get discounts on Lawgistics’ other packages. You’ll receive a £100 discount off the Small Business package (normally £795) – perfect for sole traders, a partnership or a small dealer group – and £250 off the Professional package (normally £1,595). This is ideal for franchises, a dealer group or a car supermarket and covers all relevant legal areas and documentation. There really is a package for everyone with Lawgistics.
To join go to cardealerclub.com or call 023 9252 2434 and speak to one of the Car Dealer team Fifty per cent off your first video shoot or PR package Video has become a must-have for dealers, with branded, broadcastquality video for corporate messaging and social media outlets now the industry standard. Automotive PR and video expert OnCue Comms, which works with the likes of Glyn Hopkin, Nissan, Mitsubishi, Skoda and Motors.co.uk, is offering club members 50 per cent off their first video shoot or PR package. For more information, please call 023 9252 2434.
ON CUE .
PR
LISTS
CIA
SPE
CarDealerMag.co.uk | 67
Auctions.
Can Cazoo succeed?
James Litton, p76
Pearson
AUCTION STATIONS
Get a vital competitive edge with BCA Partner Finance
F
PARTNERSHIP
Aston Barclay wins two-year Endeavour Automotive deal
E
ndeavour Automotive has appointed Aston Barclay as its remarketing partner in a two-year contract that will see 4,000 part-exchange vehicles sold physically and digitally. It is offering used cars every Wednesday at Aston Barclay Chelmsford from its 15 dealers that represent Volvo, Hyundai, Lotus and LEVC across London, Buckinghamshire, Hertfordshire and Essex. In addition to the physical auctions, Endeavour is using Aston Barclay’s e-Xchange wholesale online used vehicle trading platform to sell its part-exchange stock 24 hours a day, seven days a week. Unsold vehicles are automatically entered into the weekly physical sale. Individual dealerships can also use the e-Valuate vehicle appraisal app to
accurately appraise incoming vehicles and generate standard appraisals and imagery for use on the e-Xchange platform, while simultaneously generating a vehicle collection request to Aston Barclay. Adrian Wallington, Endeavour Group’s managing director, said: ‘Aston Barclay impressed us with its dynamic physical and digital proposition. ‘The seamless integration of physical auctions and an online platform coupled with strong relationship management were key factors in our decision.’ Neil Hodson, Aston Barclay’s group chief executive, said: ‘Our buyers will welcome the great mix of part-exchange stock. This is further proof that the suite of products and services we have developed are increasingly being seen as the future of remarketing.’
Free seminar to examine key issues THE challenges facing the remarketing sector next year will be the subject of a major free seminar organised by the Vehicle Remarketing Association. ‘2020 Vision’ will take a wide-ranging look at issues likely to affect the used car Car dealer new strip ad Revised and van markets next year, ranging from
a possible recession and Brexit through to the latest in online retailing and dealer margins. The one-day event, sponsored by Cazana, takes place at The Slate, Warwick University, on Wednesday, November 27 and there are free places for up to 150 4/4/18 12:01 Page 1 delegates. Register online at bit.ly/vra2711
Fixed cost buyers premium User friendly website & stock locator. On-line bidding
Professional Vehicle Auctions for Professional Vendors & Buyers
68 | CarDealerMag.co.uk
Stuart Pearson is BCA UK’s chief operating officer for remarketing. Visit bca.co.uk or call 0345 600 6644.
Excellent variety of weekly stock from premium sources
The Fleet Auction Group
www.fleetauctiongroup.com
lexibility is critical in the dynamic used vehicle market and BCA works closely with dealers to ensure we continue to innovate to meet their needs. With competition always intense for the best used vehicles in the wholesale sector, dealers need to make quick decisions when stock opportunities present themselves. BCA Partner Finance affords customers greater flexibility in the stocking decisions they make and frees up capital to enable them to invest in growth elsewhere in their business. BCA Partner Finance gives dealers working capital to increase their stock holding and build their sales volumes. This makes it easier and quicker to replenish stock and control cash flow. Dealers can choose to upgrade their stock profile with higher-value vehicles and potentially increase the profit per unit. BCA Partner Finance funds the whole auction purchase, including fees and VAT applied to both cars and LCVs eligible for funding using the scheme. The service offers both franchised and independent dealers of all sizes up to 120 days funding on vehicles purchased at BCA auction centres. To make stocking decisions even more accessible, customers can also appraise part-exchanges through the Dealer Pro application and determine whether they want to retain and fund vehicles for retail stock or remarket them. At the push of a button, a dealer can decide to fund and retail a part-exchange, retain within the group or remarket through digital or physical auction. Thanks to a series of data integrations, the vehicle can be loaded into the UK’s largest lead management and DMS providers. Dealers also benefit from accelerated payments as BCA Partner Finance now provides next day payments compared to the usual BACS method, which can take up to three days. BCA Partner Finance gives dealers a competitive edge.
Fleet Car Sales every Tuesday at 1pm & Thursday at 10am Van sales every Wednesday at 10:30am Wheelchair Accessible Vehicles fortnightly, Wednesdays at 10am Truck, Trailer & Plant fortnightly, Wednesdays at 12noon Collection of vehicles 24 hours a day, 7 days a week Purpose built 15 acre auction complex Enclosed and heated auction halls and viewing area Vehicle refurbishment facility The UK’s finest auction restaurant Central UK location (Leicestershire) NAMA Vehicle Grading
Call 01530 833535 or go online for account application
Taking Stock. Remarketing specialist BCA analyses its latest Pulse report to give its thoughts on matters that dealers need to consider in the months ahead.
Market stabilises and demand rises despite holiday season July was notable this year because of a shift in the mix of product entering the market, says Stuart Pearson, chief operating officer for BCA’s UK remarketing operation.
T
he headline value of a used car at BCA fell by £310 in July to £9,153, according to our latest Pulse report. Always a month during which the summer holiday season gets under way, July was notable this year because of a shift in the mix of product entering the market. After a number of consecutive months of falling book values, we saw the market stabilise in July and demand lifted in spite of the commencement of the summer holiday season. We’ve continued to work closely with our customers over recent months to keep them informed of factors influencing trading conditions and keep stock churning. Our unique real-time BCA Valuations pricing intelligence continues to help customers value stock to sell first time and provides an additional layer of confidence during what has been a challenging period in the industry. The cleanest and best-presented stock continues to attract buyers, and those customers who have invested in intelligence-driven vehicle
preparation during this period have continued to benefit from the demand and value that has been created. Fleet & lease values averaged £11,294 at BCA in July – down by just £78 (0.76 per cent) compared with June but up by £193 (1.7 per cent) compared with a year ago, despite age and mileage rising slightly. Similar to June, the retained value against original MRP (manufacturer’s retail price) was down by around two percentage points when compared with 2018, largely as a result of both age and mileage at the time of sale rising compared with a year ago. Dealer part-exchange average values fell for the first time since April of this year. However, the average value of £5,009 was broadly in line with last year, with a very similar profile of age and mileage. Values for nearly-new vehicles at BCA fell to £22,106 – a £1,375 (5.8 per cent) decline from the June value. Model mix has a significant effect in this sector, with brand-specific winners and losers.
Headline used car value :
£9,153
Van-tastic result! MERCEDES-BENZ Vans achieved strong sale values in its first e-auction staged by BCA. The event saw over 90 per cent of the stock available sold and achieve 103 per cent of reserve as buyers competed strongly online. The sale is part of a broader partnership with BCA that spans collection, de-fleet and remarketing from its operation in Doncaster. BCA opened a new high-specification refurbishment facility for Mercedes-Benz Vans in Doncaster that manages 3,200 LCVs a year through the end-of-term process, including inspection, refurbishment and pre-sale imaging. BCA developed a selfcontained operation there and has recruited trained mechanics and vehicle inspectors to ensure a consistent level of service for Mercedes-Benz Vans. Matt Bristow, OEM commercial director at BCA, said: ‘The strong results are a testament to both the quality of the product and strength of the partnership we have.’ CarDealerMag.co.uk | 69
Extra Cover.
...in association with Gallagher
Protecting your dealership and staff from social engineering Think before you click – that’s the key to preventing your employees from becoming victims.
M
ore and more dealerships are becoming concerned about the threat of social engineering, and with GDPR requiring you to report a breach within 72 hours, this concern is understandable. Social engineering is more than just poorly written phishing emails, with scams becoming increasingly sophisticated and harder to detect. In this article, we break down the risks of social engineering, the different guises it can appear in and how to educate your employees and protect your business. What is social engineering and how does it work? Social engineering involves some form of psychological manipulation, usually tricking an employee into handing over confidential data or making a financial transaction. It can involve emails, telephone calls or malicious websites and usually preys on human desires to please by putting the victim into a situation where they need to respond quickly, eg, an email pretending to be from their CEO. What forms does it take? Social engineering takes many forms, but only three per cent of them involve exploiting gaps in technology; the rest bank on tricking a user1. By far the most common are phishing attempts, which make up 93 per cent1 of social engineering bids. It could come as a text or email from a seemingly legitimate organisation such as your bank or a delivery service, yet if you click the link it will download malware or ransomware to your computer. Social engineering could come from an email which appears to be from within your department – ITTechTeam@AJG.com for example – but this doesn’t mean you should automatically disclose personal data such as your username and password.
This is a common way of gaining access, as the frequent deliveries and off-site staff coming and going from the building make it hard to identify who is genuine and who isn’t. Technology such as swiping cards to use lifts or open doors does help with deterring this but only if people are aware never to let someone without a pass into a secure area.
Typical types of scams As well as email and text scams, scams can also come from unexpected places. One common route to phishing data is the fax scam, where a link to a fraudulent fax installs malware on to your PC. This is especially common in document management, insurance and other financial services companies. Another often-used scam is the Dropbox link. This can involve either a fake password reset phishing email, or a link that redirects those who click to malicious software. But it’s not always via your inbox While phishing emails are the most common form of phishing, cyber criminals can also use employees’ social media posts to gather information that can help them to work out passwords or company confidential information. Most employees won’t think twice about posting their pet’s name, date of birth, favourite place or similar, as they just don’t think that cyber criminals are watching. Raising their awareness of online footprints can help to combat this, as can disciplinary action for repeat or serious incidents where necessary. Social engineering can happen face to face too, through a process known as tailgating. Tailgating is where an attacker attempts to gain access to the premises by pretending to have forgotten their access pass, for example.
‘An effective training programme can help to keep security at the forefront of employees’ minds.’
Think before you click The key to preventing your employees from becoming victims of social engineering is to teach them to think before they click. An effective training programme can help to keep security at the forefront of employees’ minds and prevent them from becoming complacent. It is important that employees can identify a phishing email and know the correct channels for reporting it. If your employees are not expecting an email from an outside source then they should take the time to fully type out a link address before clicking it, or call the person to check the email is from who it says it is. The same strategy applies to phishing calls. Hang up the phone and offer to ring the caller back, making sure it is the correct number before doing so. Insurance is still the bottom line As important as employee training and awareness are, you cannot prevent every instance of social engineering. That’s where an effective cyber insurance policy comes in. A cyber policy can help ensure that your business keeps trading with minimal financial and reputational damage if ransomware does lock your systems. Our cyber insurance offers a 24-hour hotline response, speeding up the important step of reporting the breach to the ICO. Post-event, we can help you with disaster recovery costs, pay for forensic investigations into the cause of the breach and help to mitigate the damage by engaging PR specialists and legal advisers. If you would like to discuss cyber insurance in more detail or have any questions related to your policy, simply contact your usual Gallagher representative to find out more. l
Source: 1 online at http://bit.ly/SE-risks
The managing director of the automotive practice at commercial insurance broker and risk management specialist Gallagher is Leon Bosch. Contact the automotive team on automotive_enquiries@ajg.com or 01582 542330. Arthur J. Gallagher Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered Office: Spectrum Building, 7th Floor, 55 Blythswood Street, Glasgow, G2 7AT. Registered in Scotland. Company Number: SC108909. www.ajg.com/uk
70 | CarDealerMag.co.uk
Gallagher Automotive Specialist Motor Trade Insurance
Helping protect businesses across the country for over 50 years - from independent repairers and small garages to larger franchise dealerships Contact us to find out more: T:
+44 (0) 800 612 2284
E: automotive_enquiries@ajg.com
GST-225260264
ajginternational.com Arthur J. Gallagher Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered Office: Spectrum Building, 7th Floor, 55, Blythswood Street, Glasgow, G2 7AT. Registered in Scotland. Company Number: SC108909. FP04-2018 Exp. 04.01.2019 Š2018 Arthur J. Gallagher & Co.
CarDealerMag.co.uk | 71
Key Notes.
...in association with Traka
Explore the value of driver data before the OEMs beat you to it! Delivering the services prized by your customers will help encourage them to stay loyal, says Paul Smith.
I
wrote about the potential to offer value-added services to your customers on the back of the emergent connected car revolution in Car Dealer about a year ago. In that article, I looked in detail at Smart Driver Club, which already offers dealers a number of customer-ready services, all based on collection and analysis of telematics (or driving) data, delivered by Onboard Diagnostics (OBD) 2 devices, which provide ready access to all data coming from engine control units. We are talking a lot of data. As we transition to fully autonomous driving and need to collect and analyse multiple sensor and LiDAR data, cars could be generating 5,100TB of data each year. According to consultants McKinsey, the overall revenue on offer from monetising all this driving data might reach $750bn (circa £607.5bn) globally by 2030 and there will be 380 million connected cars on the world’s roads by 2021. The opportunity is very real, and the data mountain associated with it is growing very fast! This time, I thought I’d look more closely at what OEMs and other suppliers to our sector might use this car usage data for. Firstly, you can look at Tesla’s big data model, which aims to tap and analyse driver data to deliver driving behaviour insights and personalised experiences directly to their drivers. Tesla is also using drivers’ data to cut their motor insurance premiums by up to 30 per cent (only on Teslas sold in California right now), as all that rich driver behaviour data, combined with location-tracking data, enables them to assess any driver’s risk of accidents, theft and so on more accurately and price accordingly. Tesla understands that giving up personal data needs to be a worthwhile transaction – in other words,
palpable value needs to be returned to the data owner (ie, the driver). As cars become increasingly high-tech, enhancements will increasingly be delivered via software upgrades deployed via the cloud. But what if vehicle feature upgrade recommendations can be offered to drivers based on analysis of their driving behaviour, mileage levels, acceleration stats, average speeds and maintenance records? Clearly, the opportunity to improve customer loyalty while delivering more personalised experiences are manifold. Everything that Tesla is doing today to get closer to customers by amassing and analysing driver data and then offering value-added services to customers in return can also be offered by enterprising UK car dealers right now. The danger of not exploring the value of your customers’ driver data today is that your OEMs are (or will be very soon). Arguably, you are happy that today your OEM is routing servicing requests, made increasingly direct from a connected car’s dashboard or mobile app, through to you as the nearest main dealer to the registered owner of that vehicle. However, by the same token you are handing over more control to your OEMs by not accessing your customers’ data yourself.
BMW Group is already offering new BMW drivers a BMW CarData service via its BMW ConnectedDrive customer portal. BMW CarData promises BMW dealers, once they’ve obtained the customer’s data permission, access to general status, mileage level and service requirements data, which can then be used to send servicing alerts to the customer, proactively offering parts changes before they wear out, and much more besides. As well as franchise dealerships, it’s also possible for insurance companies, fleet managers and other authorised third parties to register with BMW CarData, so that with the car owner’s permission, it’s possible that many of the benefits mentioned above will be offered via the manufacturer itself if a customer buys a new ‘connected’ BMW. So, the only other question to consider as connected car services are rolled out by your OEM is: ‘Do I want to retain control of my customers’ driving data and the services I am able to offer them to help retain them, or am I comfortable with leaving that control to my OEM(s)?’ It may depend what your OEM offers via their connected car service and how much you trust them not to share the information (about the cars your dealership has sold) with other third parties. If the majority of the cars you are selling are approved used or mainstream brands, then the Smart Driver Club model is the one for you. The key is to get in early to offer these services; learn what services your existing customers most value and which positively impact customer loyalty the quickest. By getting ahead of your OEMs, you will be able to call the shots when they offer you their equivalent of BMW CarData.
Paul Smith heads Traka Automotive, part of the Assa Abloy Group brand Traka. Assa Abloy bought the electronic key management software provider eTag Solutions, which was founded by him. Traka is a leader in intelligent access control, key management control solutions and keyless electronic lockers.
Keys can make you money… Find out how at www.traka-automotive.com The only viable key management solution for automotive Email automotive@traka.com or call 0845 225 2910 72 | CarDealerMag.co.uk traka-auto 1-6pg.indd 1
15/12/2016 09:56
Market Insight.
...in association with ASE-global.com
Lookers regains some losses but Pendragon slide continues Aside from the movements affecting those two, August was a relatively quiet month, says Mike Jones.
A
fter a rocky few months with the UK motor retail groups coping with numerous shocks, we saw a divergence between share price performances during August. The slide at Pendragon continued, with the stock down another 20.9 per cent in the month on the back of a delayed results announcement and the continuing uncertainty over future direction. In contrast, after a rough couple of months on the back of the FCA investigation, Lookers recovered nearly 12 per cent of its value. However, it is still practically 50 per cent down on the share price at the start of the year. Share price movements Aside from the movements at Lookers and Pendragon, August was a relatively quiet month for UK motor retailers. The overall sector is still down significantly on the prior year as a result of the continued market uncertainties, compounded by the management changes and strategy uncertainty at Pendragon and the FCA investigation at Lookers. Outside of the franchised retailers, we witnessed the first check on the strong growth we have seen at Auto Trader as a result of competitive challenges and share price growth at Motorpoint on the back of market performance.
Share price movement during Aug 2019
Share price movement since the start of 2019
Pendragon
-20.9%
-54.7%
Vertu
-6.9%
-4.7%
Lookers
11.9%
-49.6%
Inchcape
-7.4%
4.8%
Cambria
-7.8%
-2.8%
Caffyns
-8.5%
0.0%
Marshall
2.1%
-6.5%
Motorpoint
15.4%
22.4%
BCA
-0.1%
9.8%
Auto Trader
-1.9%
16.9%
Financial performance During the month, we saw a strong set of interim results announced by Marshall for the first six months of 2019. Underlying profit before tax fell 5.3 per cent, principally on the back of the tough new car market. Used volumes were up 7.2 per cent, albeit with some margin pressure in used and aftersales. In addition, Lookers announced its results for the first half of 2019. Underlying profit before
tax was down 27.5 per cent, despite a small increase in revenue. The results included a one-off investment of ÂŁ10m for a restructure and strengthening of its regulated activities on the back of the FCA investigation. Other announcements Pendragon announced that it would publish its interim results for the six months ended June 30, 2019 on September 18. Based on previous announcements, this will also be when it will provide an update on its strategic review. In addition, Pendragon said that it had completed the sale of its Puente Hills Chevrolet site in California. This was not one of the disposals previously announced, albeit it does fall within the general strategy to exit from its US operations. There has been no word on the completion of the disposal of the Newport Beach JLR dealership since the initial announcement at the start of May. During August, we also saw Lookers nonexecutive director Tony Bramall increase his stake in the company to over 10 per cent through his investment vehicle Guernsey Investments. In addition, Inchcape announced that Gijsbert de Zoeten was joining the group as chief financial officer.
Mike Jones is chairman of dealer profitability specialist ASE plc. You can read his column here every month. CarDealerMag.co.uk | 73
EVERY 40 MINUTES WE FIND ONE OF OUR CLIENTS A NEW MEMBER OF STAFF BECOME A VALUED CLIENT TODAY 01603 701 077
74 | CarDealerMag.co.uk
Recruitment. NETWORK ENGAGEMENT
Peugeot names its new head of business sales PEUGEOT has named Matthew Weston as its new head of business sales following the departure of Louise Neilson, who has moved to a different role within Groupe PSA. He steps into the position following three years of success as LCV product manager for Peugeot and Citroen. Weston brings 25 years of experience working within the automotive sales sector, including almost 15 years with Groupe PSA. His new job will involve close engagement with Peugeot’s dealers, helping the brand to continue to grow through the UK network. The dealer network is an integral part of Peugeot’s ambition to establish itself as the best high-end generalist brand and to provide an electrified derivative for every model by 2023. Weston, pictured, said: ‘It will be great to get closer to the dealer network and support them in achieving our brand ambitions.’
SSANGYONG MOTORS UK
Mark set to build upon ‘excellent foundations’
S
sangYong Motors UK has appointed Mark Burrows as director of aftersales. He has been in the motor industry all his working life, starting as an apprentice technician with Mitsubishi Motors and rising to several senior roles within the company, including regional sales manager and field sales manager. Burrows then signed up with the Mitsubishi Ralliart team in 1999 as national sales manager before moving to the thenemerging brand Kia. Switching to two wheels, Burrows left Kia to join Triumph Motorcycles in 2003, then worked with Harley-Davidson for a spell. Latterly, he was with global brand Tesla as regional service manager responsible
Mark Burrows for emerging markets before going to Jaguar Land Rover Classic, where he oversaw parts, accessories and lifestyle portfolio products. As director of aftersales at SsangYong, Burrows will be in charge of the brand’s aftersales strategy, meeting volume and profit targets and delivering a high level of customer satisfaction. He will also be
responsible for the firm’s port operation at Avonmouth and the personal development and coaching of a diverse team. ‘I’m looking forward to joining the SsangYong UK team in the next stage of its development,’ he said. ‘I have an array of experience across the automotive sector, so I hope that I can help build upon the excellent foundations that are already in place.’ Nick Laird, managing director of SsangYong Motors UK, said: ‘We are absolutely delighted to welcome Mark to the team at SsangYong.’ Burrows added: ‘There is gratification in seeing a brand such as SsangYong evolve, so I’m delighted to be joining this growing company at this stage in its development.’
The only viable key management solution for automotive dealerships Traka Automotive creates hundreds of opportunities every day to: • Reduce costs • Be more productive • Sell more cars • Improve customer satisfaction • Know more about how your business is performing
Email automotive@traka.com or call 0845 225 2910 traka-automotive.com traka-auto IMI half-pg.indd 1
CarDealerMag.co.uk | 75 15/12/2016 10:04
Data file.
James Litton
TRADER TALES
Can Cazoo succeed where Branson and Tesco failed?
C
an you remember where you were on April 3, 2011? Probably not, but I remember something about that date. ‘Tesco starts selling used cars online’ read the BBC headline. Twitter was awash with concern about the impact of the retailer’s decision to enter the car market, and I had a spicy exchange with Ling Valentine from Ling’s Cars. In the blue corner was Ling. It was her opinion that Tesco, with its financial might and huge goldmine of data, would disrupt the UK car industry significantly. I occupied the red corner, my feeling being the used car market (one in which I was operating as an independent at the time) was too nuanced for a non-specialist retailer to enter and succeed in. I also reminded her that Richard Branson, another heavyweight consumer champion, had tried but failed to do the same thing years earlier. Tesco wound the business up after just a year, citing an inability to offer a wide range of cars as the primary reason for closure. Fast-forward to September 2019 and here comes Cazoo. Cazoo is not your average start-up independent. It could be argued that it offers more potential for disruption than Branson and Tesco could muster combined. ‘Why?’ I hear you cry. The founder of Cazoo is Alex Chesterman. You might not know who Chesterman is but you are more than likely to have used one of his previous online businesses. Chesterman started ScreenSelect, but you might remember it as LoveFilm. That business was sold to Amazon for £200m. Some tech entrepreneurs might be tempted to disappear to a Caribbean island with a bevy of supermodels, but in 2007 he founded Zoopla, which raised £1bn during its IPO and then was bought by a private equity firm in a £2.2bn deal. It seems that Cazoo will have a similar model to that of Tesco Cars. Greenhous is involved, as is BCA. This is not an attempt to disrupt Auto Trader’s dominant used car listing monopoly (Heycar and Cinch are coming for that), but appears to be listing and supply within 24 hours. I am still deeply cynical. I don’t doubt Chesterman’s ability to identify an opportunity; if I had just one per cent of his entrepreneurial spirit then Mrs Litton (don’t worry, darling, no supermodels for me) might be sunning herself on a beach in Barbados, but I cannot see Cazoo being any more disruptive than Big Motoring World or Car Giant. Unless there are some partnerships with marquee OEM brands (and God help the traditional retail model if there are), the sources of cars will be the same as for everyone else. Most dealers can deliver within 24 hours, and while many buyers hate the traditional sales process, the value attached to physical inspection, test drive and negotiation by consumers is often undervalued.
‘Sources of cars will be the same as for everyone else . . .’
James Litton is general manager – director of Volvo Cars Poole. He always has something to say about the industry he loves. 76 | CarDealerMag.co.uk
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The cassette went AWOL – we couldn’t believe it!
E
veryone knows a customer they have dealt with who is a bit of a pain in the bum – and at a dealership workshop I was employed at in the Nineties, it seemed as though all the punters were deliberately trying to wind me up with general rudeness and unreasonable demands. I would always do my best to help people, even if they were being exceptionally annoying – after all, the customer is always right, I suppose. At the time, I was a huge fan of the TV sitcom One Foot In The Grave, starring Richard Wilson as Victor Meldrew, of course. There were many hilarious moments in that series – but the funniest for me were always the scenes in which he was trapped in a car with his wife driving and Mrs Warboys in the back seat. Who could forget the two girls who were chatted up by a flashy hairdressing boss in a queue of traffic, leading Victor to shout: ‘This is my airspace if you’ve quite finished conducting your sex life through the middle of it!’ My favourite episode was the one – again set in a traffic queue – when Victor puts a cassette in the tape deck only to hear the mechanics at his local garage singing a rude song about him to the tune of Guide Me, O Thou Great Redeemer. I can’t remember all the lyrics but it starts something like this: ‘There’s a bloke we can’t stand any longer, always on the bleedin’ moan. Every time we mend his bloody Honda, he starts groaning on the phone.’ The song goes on and on and gave me the idea to do something similar. We singled out a particularly grumpy individual for treatment – and his name had the potential for some rather rude rhymes, which we thought would help things along. Sure enough, we went through the same motions as Victor Meldrew’s mechanics, singing along to our hearts’ content and generally having a whale of a time. Then – horror of horrors – the cassette went missing! We’d left it lying around the workshop somewhere and it simply went AWOL. The original recording was of a variety of country and western music – what would the owner say when he realised he’d been deprived of the warblings of Tammy Wynette and Dolly Parton? We needn’t have worried. He didn’t even notice the tape had disappeared. And perhaps it was for the best that he never got to hear our silly song after all...
‘The song goes on and on and gave me the idea to do something similar.’
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Long-termers. LATEST FROM THE FLEET...
BMW i3 He’s a major advocate of electric vehicles but can James learn to live with one of them for a while? by JAMES BAGGOTT @CarDealerEd
M
aking the decision to buy and run an electric car is currently one of the trickiest for those in the market for a new motor. Everywhere you turn, headlines are demonising diesel and calling for the end of combustion engines as we know them. So, while more buyers are working out whether they could live with an EV, I decided it was about time I took the plunge and tried one for myself. Now, let’s get this straight: I’m a big fan of electric cars. I love the way they drive, the silent motoring and the lack of emissions. However, I’ve had more than my fair share of problems with public charging points over the years, even being left stranded for hours waiting for electric test cars to charge at service stations while I angrily drank yet more coffee. So, when our BMW i3 arrived, I decided the only real way to test the system would be to throw myself headlong into electric car ownership and use it as my only car. The first problem with that, though, is the fact I don’t have a charging point at home, while the office charging solution is a three-pin plug. As I’ve rapidly learnt, the latter isn’t really a solution. Dripping charge into the car, it fully replenishes the battery in the i3 in a positively pedestrian 15 hours. I’ve found it’s OK for keeping the hatchback topped up after my daily runs around town, but anything longer needs a beefier solution. That has come in the shape of a public charging point at the local supermarket. Recently, a Genie fast charger appeared at the local Morrisons, which is handy as I frequent its aisles probably a little too often. I’m sure some days I spend more time at the check-outs than do their staff... The Morrisons Genie Point is very easy to use. There’s no app to download (which is unusual), just a mobile web page that lets you sign up for an account in a few simple steps and then every time you use the charger, it simply bills your bank card. There’s a £1 connection fee and then you pay per kW used. But the important thing is it pumps it into the battery in super-quick time. A few days ago, I needed a big top-up and managed to add
BMW’s electric hatchback is proving great to drive and seriously quick off the mark
THE KNOWLEDGE Model: Engine: Price (as tested): Power: Torque: Max speed: 0-60mph Range: Emissions: Mileage:
BMW i3 120Ah Electric motor £40,310 168bhp 270Nm 99mph 7.2 seconds 223 miles 0g/km CO2 767
THIS MONTH’S HIGHLIGHT: Receding range anxiety, thanks to the accurate information provided on the dashboard. 100 miles of range in just 20 minutes for about £7, all while I had a particularly slow browse of the courgettes. For comparison, adding that amount of range with a three-pin plug would take more than eight hours. It’s not cheap, but it’s certainly quick and convenient. I’ve been very impressed with the range of the i3. When it arrived, a full charge would offer me 148 miles. Not bad, not amazing, but usable. A few weeks in and the car ‘learnt’ my driving style, and the range slowly crept up after every charge. Then I went on holiday and lent the car to a particularly frugal colleague, and when I returned, the fully charged i3 had increased its range to 210 miles. I didn’t believe it, but it turned out to be accurate.
And that’s another thing I love about the i3: the range it says on the dash is spot-on. When it says you have 50 miles left, you have exactly that – and when you’re trying to ease your concerns about ‘range anxiety’, accurate information like that is very important. Since the 210-mile-range day, the i3 has settled into around 190 miles of range after a full charge, but I’ve never got close to the 223 miles promised by BMW. Overall, I’m beginning to really get the BMW. It’s great to drive, seriously quick off the mark and surprisingly easy to live with. There are a few little things that bug me – the rear suicide doors that open the wrong way and only when the front doors are open are a particular annoyance, but I find the good bits are outweighing the bad. So much so that I’ve asked BMW to extend our short-ish three-month loan to a slightly longer six-month one. Partly because I love it so much and partly because I really want to see if I can live with an electric car for longer. Fingers crossed they say yes. CarDealerMag.co.uk | 79
Long-termers. LATEST FROM THE FLEET...
Honda CR-V The Car Dealer team got busy with Honda’s configurator earlier this year... and this is the result. by RYAN HIRONS @RyHirons
N
ormally when we take delivery of a new press car it’s one the manufacturer has specified with two things in mind: its relevance in terms of what customers might go for and its probable resale value when it’s time to move it on. So, when presented with the words ‘send us your desired spec through’, things get really exciting for we motoring journalists. That’s exactly what happened when Honda offered us a CR-V to run for six months – as long as we were happy with its purely petrol offering. Of course, there was no chance of turning this opportunity down. So, after a bit of an afternoon discussion on a sunny May day on the editorial desk, we flicked through the Honda CR-V configurator and got a little bit carried away with the offerings. Spec sheet sent back to the firm, we expected Honda to come back shaking its head at us and never letting us behind the wheel of a car again. ‘The order’s gone in’ wasn’t something I was 100 per cent confident of seeing in my emails a few days later, but that’s exactly what happened. Which brings us to the present day and the arrival of RY19 XRP. This is the Honda CR-V we will be running for a few months which, if you couldn’t tell by looking at it, has had a fair few of the Japanese firm’s accessories thrown on to it. I’ll get to those in a bit, though. As hinted at earlier, it’s powered by a 1.5-litre turbocharged petrol engine – rather than the model’s flagship hybrid powertrain – here producing 171bhp and 220Nm. That’s sent to all four wheels via a six-speed manual gearbox. The result is 0-60mph in 9.8 seconds with a 130mph top speed possible. Honda claims it can return 42.8mpg on the combined cycle (although we’ll be testing that for ourselves) while emitting 151g/km of CO2. Our CR-V is also the range-topping EX model, which starts at £34,780. Luxury highlights here include 19-inch alloy wheels, heating elements for both the front and rear seats along with the steering wheel, an opening panoramic glass roof, a hands-free tailgate, full LED headlights, a seven-inch touchscreen infotainment system with Garmin sat nav and a rear-view camera complete 80 | CarDealerMag.co.uk
Initial impressions of the car have been good. It’s spacious and the driving experience is pleasant
THE KNOWLEDGE Model: Honda CR-V EX Price (as tested): £39,175 Engine: 1.5-litre turbocharged petrol Power: 171bhp Torque: 220Nm Top speed: 130mph 0-60mph: 9.8 seconds MPG (combined): 42.8 Emissions: 151g/km CO2 Mileage: 770 THIS MONTH’S HIGHLIGHT: Welcoming RY19 XRP to our long-term fleet. with parking sensors. In terms of safety kit, there’s adaptive cruise control, lane-keep assist, lane departure warning, automatic emergency braking, forward collision warning and traffic sign recognition – all standard across the range. So, that’s how an EX would come before ticking some more boxes – but at £39,175, our car has a few more goodies. Its ‘Premium Crystal Red Metallic’ paint job makes up £850 of that, with items from Honda’s accessories list accounting for the other £3,545. Most notable is its opinion-dividing £2,250 ‘Aero Pack’ – adding large front and rear bumpers, metal-finish side running boards and a large rear spoiler. I think it looks pretty mega, although on the flip side editor James Baggott took one glance and said: ‘You’re never speccing a car again’. It’s a bit like Marmite, really. Body-coloured rear parking sensors account for an additional £215, illuminated door sills add a further £445, a chrome decoration at the back throws £110 more into the mix, its windowmounted visors are a £185 add-on while a £340 boot organiser rounds out the package.
Is any of this worth it? That’s what I’ll be looking to find out over the next few months. Initial impressions of the car have been good. It feels incredibly spacious, the driving experience is pleasant and its (albeit few) journeys so far have been comfortable. The outdated infotainment system proves to be a sticking point though, and a few controls come across as fiddly. Will it continue to be a joyous affair? Time will tell – it always does.
OTHER CARS WE’RE DRIVING
Audi A6 Avant Mileage: 8,585 This executive load-lugger has been lovingly welcomed by the video team, says our Nigel, as it offers comfort on long trips as well as plenty of capacity for their equipment.
Cupra Ateca Subtlety is very much the name of the game here – and that’s why our sports SUV is so cool. by JACK EVANS @jackrober
I
quite like an undercover performance car. There’s something to be said about being able to travel in a vehicle that has boatloads of performance but doesn’t shout about it too much. And this is the case with our Cupra Ateca. I’ve seen a few other examples on social media and, by and large, they’ve been finished in quite jazzy colours. Some even have bronze wheels – you don’t really see those very often, and that makes those particular Atecas stand out a fair bit. (You can probably see where I’m going with this.) Our car, in flat silver with matching wheels, looks just perfect in my eyes. It’s because, for the most part, it looks just like a regular Ateca. However, appearances can be deceptive. Thanks to its 296bhp 2.0-litre turbocharged engine, KR19 VCC picks up rather quickly, and I’ve found on multiple occasions that it’s left other cars trailing in its wake. That includes sports cars, whose drivers have looked at our subtle exterior and believed us to be in just another SUV, rather than a four-wheeldrive with the beating heart of a Volkswagen Golf R under the bonnet. I think that’s quite cool, don’t you? And it kind of reflects the overall driving experience that you get with the Ateca. When you’re not driving quickly and would rather potter around,
Our silver Cupra Ateca has plenty of performance but prefers not to shout about it the Cupra is happy to oblige. The ride is a little harsher than the regular Ateca, that’s for sure, but it’s not horrendously firm. Likewise, the steering feels a touch heavier than the Seat upon which this car is based, but it’s not so weighty that you feel like you’re wrestling with it every day. On a recent trip into Southampton I was able to drive into, park, and drive out of a multistorey car park without shouting, worrying about kerbs or cursing a large turning circle once – and this is often the case with performance SUVs. Furthermore, once we were all done, there was plenty of room in the boot for shopping bags. And once the shopping is finished and you’re free of the car parks, it’s still a car that you can use to exploit a twisty road. The performance is more than enough for the UK’s highways, and the suspension is judged just well enough that the car’s bulk doesn’t hold you back in the bends. I’d like a little more exhaust noise if I’m honest (and I’m aware that this goes against the whole
‘undercover’ ethos), but when you’re pushing on a bit, it’d be nice to have a car with a bit more audible character. Overall though, things are going well with our long-term Cupra. The brand has recently announced a new concept – the all-electric Tavascan – and I’ll be interested to see how that fits in with the brand as a whole. Ideally, I’d like them to introduce an all-out hot hatch, but I think that the push towards electrification means that it might not be a viable prospect. Still, we’ll have to wait and see.
THE KNOWLEDGE
Ford Focus Vignale
Skoda Kodiaq SE L
Mileage: 5,982
Mileage: 1,946
Car Dealer Dave has been trying out the Active Park Assist system that our long-term Focus is equipped with – and found it worked a dream after he’d actually bothered to read the manual.
The Kodiaq is a zero-hassle affair. Comfy, quiet and – when driven economically – not a gas-guzzler. Resident detailer Ted gave it a proper clean, so it’s now the shiniest vehicle in the car park, too!
Model: Engine: Price (as tested): Power: Torque: Max speed: 0-60mph: MPG (combined): Emissions: Mileage:
Cupra Ateca 2.0-litre TSI petrol, seven-speed automatic £35,915 296bhp 400Nm 153mph 5.0 seconds 34 168g/km CO2 3,434
THIS MONTH’S HIGHLIGHT: Surprising the drivers of sports cars by being quickest away from the traffic lights. CarDealerMag.co.uk | 81
The last word JA M E S B AG G OT T
Against our better judgment, we give our CEO the final say each month
The numbers don’t add up – and that’s clearly not good for business
N
ow, I’ve been told more than a few times over the past few months that times are tough out there. Car dealer bosses I’ve spoken to have painted a tale of woe as sales dwindle, buyers dry up and new car buyers become few and far between. But it wasn’t until recently, when I got out there to visit a few sites with my new-car-buying mother, that I realised just how bad things were. My mum has been in new cars for six years now, having bought into the cheap PCP cycle that allowed her access to a modern motor for not huge amounts of cash after I convinced her it was a good idea. In fact, I helped her buy her first new Skoda Citigo a few years back after pulling together the best cars on offer for under £100 a month as a cover feature for this very magazine. It was that process that saw her driving around in a lime green Skoda for not much more than a mobile phone contract. Two and a half years later, the dealership called her up, knowing her PCP was coming to an end, and offered her the chance to upgrade to a Fabia for £169 per month. This time it was an automatic 1.2 petrol, a bit bigger and, importantly, a five-door. Mum snapped up the offer and has been enjoying that one for the past three years. Now, with that PCP coming to a conclusion she wanted something new, and asked if I could help her find something. The criteria were pretty simple: something a bit bigger, automatic again, and apart from that there were few other restrictions. The PCP did what it was designed to do and forced her back into the hands of the Skoda dealer who – and it’s at this point I should have realised something was up – offered her a six-month-old demonstrator for more than she was currently paying. She quite rightly turned them down. I had a good think, asked the team in the office for their thoughts, and did some reading up of our reviews. With a shortlist in mind, we set out one Saturday to visit a few dealerships and started at the local Kia site. I thought the Stonic would be ideal – mum liked its slightly jacked-up looks, driving position and the equipment. There was a cool special edition in the showroom that took her fancy too. With that in mind, we sat down to crunch some numbers – and it was at this point we got a bit of a shock. A three-year PCP deal on the £19k car was coming in at £286 per month. Worryingly, the equity in my mum’s 8,000-mile Skoda was just £300 too – I hate to think how much negative equity she’d have been in if she’d done normal
mileage in it. Mum was putting in a few hundred quid more to the deal, but I was still shocked at how much it was. The Kia dealer was a little embarrassed too – he knew what mum was currently paying and guessed that without getting it under £200 a month there wouldn’t be a sale. It was the same at Citroen. We looked at a C3 Aircross – a funky car with cool styling and lots of space. The sales manager was even doing me a mates-rates deal but still couldn’t get anywhere near the price mum wanted to pay, his deal coming in at £260 per month. I asked the salesman what was going on. He explained that a combination of price rises – of which he’s seen five this year alone – and finance companies catching a cold on guaranteed future values had shocked the market. One dealer told me he’d seen just three customers this year who had been on the right side of the future value on their car – all the others had simply handed their cars back to the finance company and walked away. ‘It’s a very difficult conversation to have with a customer when they come in and their car is worth £2,000 less than the value written into their deal and you have to ask them to stump up another deposit for their next car – and at the same time pay more a month,’ said one clearly frustrated dealer. ‘The customers at this point have understandably lost faith in PCPs.’ As you well know, PCPs were designed so customers ever so slightly overpaid each month so when they came around to changing it they had the money in the car’s value for the next deposit. But with values plummeting on used cars – thanks to a toxic mix of diesel demonisation and Brexit – finance companies are running scared. The future values I saw written into those deals offered to my mum were poor and overly cautious – consequently serving to push the monthly payments out of mum’s reach. And all this at a time that consumer confidence has taken a tumble. So, what did mum do? After much wrangling, she decided to keep her Fabia. With just 8,000 miles it was barely run in and she owed £7,500 on the finance. She took out a loan, paid off the balance and will keep it until it doesn’t work any more. Another new car buyer out of the market. What’s worrying is that I’m sure she’s not alone and that there are many more conversations like this one happening in dealerships like yours every single day. No wonder the new car market is so tough.
‘With values plummeting on used cars, finance companies are running scared’
James Baggott is the founder of Car Dealer Magazine and chief executive officer of parent company @BaizeGroup, an automotive services provider. He now spends most of his time on Twitter @CarDealerEd and annoying the rest of us. 82 | CarDealerMag.co.uk
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