Car Dealer Magazine: Issue 123 by Blackball Media

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Issue 123 | June 2018 | CarDealerMag.co.uk | £5

QUICK SWIFT FIRST DRIVE

SUZUKI CHANGES UP A GEAR WITH ITS LATEST HOT HATCH

The big story

ARE CLASSICS IN A BUBBLE THAT’S ABOUT TO BURST?

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Editorial HEAD OF EDITORIAL Rebecca Chaplin

rebecca@blackballmedia.co.uk Twitter: @believebecca

HEAD OF DESIGN Graeme Windell

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PRODUCTION EDITOR Dave Brown

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FEATURES EDITOR Jack Evans

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STAFF WRITER Ryan Hirons

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STAFF WRITER Tom Wiltshire

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Advertising SALES MANAGER Jon Hickey

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ACCOUNT MANAGER Michelle Searle

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MANAGING DIRECTOR BLACKBALL MEDIA Andy Entwistle andy@blackballmedia.co.uk Twitter: @CarDealerAndy Contributors Felicity Bestwick, John Bowman, Jess Ernerth, Ted Welford, Sophie Williamson-Stothert

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Welcome.

AS YOU read this, we could be in the final stages of CDX, it might all be over, or you could have grabbed this copy of the magazine at the show. If you’ve become tired of our stories about the event, you’ll be pleased to read that this edition is pretty much a CDX-free zone. It’ll be back next month, however, when we’ll be bringing you coverage of our two-day spectacular in Manchester. I’m tempted to write that we’re moving into event season for Car Dealer Magazine but, if I’m honest, from where we’re sitting, it feels as though it never ends! So what’s next? Well, we’re fast approaching the deadline of May 24 for Car Dealer Power nominations – and again, that date might have passed by the time you read this! Shortly after that, we’ll be accepting nominations for the Used Car Awards. In the blink of an eye, that’s the first half of the year gone and we’re into what seems to be a bright and warm summer. That means we’ve started to see some more results come through for the first quarter and first half of 2018. While things might seem positive compared to a dire April 2017, the outlook still doesn’t look fantastic. I’ve seen comments online that accuse the press of painting a picture of doom and gloom that doesn’t really exist. I’d say those remarks are unfair because figures being released do show a severe drop in sales. A lot of companies have been bolstered by the growth in used cars – but someone has got to be missing out. One of the areas that we thought would be safe – as prices only seemed to climb month by month – was classics, but even they seem to be suffering from a decline in demand or at least buyers being more reserved when spending big.

This month, Tristan has been diving into the figures around classic cars and speaking to some experts in the field to find out who is still buying and what they’re spending their money on. But in the new market we’ve seen more franchises shutting down – Hylton Motors and Now Motor Retailing – although others have been prepared to step in and take on these sites or franchises nearby. Then we’ve seen that Vauxhall has decided to reduce its network, bringing it back into the news again and under renewed scrutiny – we’ve got all of the details on page 8. Could this be the first stage of a new beginning for the motor trade or is it just the survival of the fittest? Meanwhile, we’ve got a feature of epic proportions for you from pages 46 to 51. Jack and Tom have been taking a look at a growing consumer market – commercial vehicles. They check out a couple of everyday workhorses – the Volkswagen Transporter and Amarok – but purposed to suit your customers’ lifestyles and hobbies. The Transporter is transformed into Volkswagen California, which Tom has been testing in… California. However, Jack’s adventure is a little bit more rugged and more suited to the Amarok’s off-road abilities, as he heads out to Oman for a camping trip with a difference. Overall, I think it’s fair to say the industry is going through some ups and downs right now. Times are changing fast and this is an issue you can’t afford to miss. I hope you enjoy it.

Rebecca Chaplin Head of Editorial CarDealerMag.co.uk | 03

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Find out more. Call 020 3897 2500 or visit www.glassbusiness.co.uk/valuations 04 | CarDealerMag.co.uk

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Suzuki Swift Sport Latest incarnation of Japanese manufacturer’s hot hatch is put through its paces by Ryan Hirons

Best of the Beijing Motor Show

ISSUE 123 I JUNE 2018

Dashboard. Big Story: Classic car prices Around the UK A Perfect Partnership Lookers Electric Car Challenge Rebecca Chaplin Big Mike Around the World So You Wanna Be A Car Dealer? Feedback Finance

06 10 18 22 27 29 30 32 34 38

Features. Exploring in iconic VWs

Data File. Car Dealer Club The Statistics Market Insight Auctions Taking Stock Real Deals Recruitment Suppliers Guide

Forecourt. Suzuki Swift Sport Mercedes A-Class

42 44

Key Notes with Traka Long-termers James Baggott

46 60 62 65 66 69 71 73 74 77 79 82

Lookers all set for a carbon-neutral fund-raising fundraising challenge

Audi SQ5 joins our fleet of long-termers

Our events... As voted for by dealers, Car Dealer Power is unique. Details of our 2017 winners are online at bit.ly/ winners-2017 – and this year’s awards ceremony is on June 28.

The Car Dealer Used Car Awards, sponsored by Black Horse, celebrate the used car industry. Go online to bit.ly/UCA-winners to find out who won what in 2017.

The UK’s biggest automotive trade expo features the Live Stage, breakout sessions, workshops and much more. Coverage of the 2018 event will appear in the next edition of Car Dealer. CarDealerMag.co.uk | 05

Dashboard. THE BIG STORY

Is the classic car bubble starting to burst? New data published by Auto Trader paints a mixed picture when it comes to the values of vintage vehicles. Tristan Shale-Hester reports.

lassic cars can fetch big money – that’s not news to anyone. Last year, a 1956 Aston Martin DBR1 became the most expensive British car ever sold at auction when it was bought for the staggering sum of £17.5 million. Other examples of mega-expensive cars sold at auction include a 1962 Ferrari 250 GTO that went under the hammer in the USA for the equivalent of £28.18 million and a 1954 Mercedes-Benz W196 that fetched £17.7 million in the UK. But the extremely positive run of luck this marketplace has seen over the past few years may be about to come to an end if certain trends in the latest data continue. In recent times, putting your hard-earned cash down on something old, unreliable, impractical and potentially unsafe, all in the name of investment, has been worthwhile. Data from Auto Trader shows that classic car values have been steadily on the rise over the past few years. In March 2011, the average price of a car aged 06 | CarDealerMag.co.uk

more than 20 years old was £5,939, decreasing 2.4 per cent in 2012 to £5,797 and then another 0.7 per cent in 2013 to £5,793. However, there was a sharp turnaround in March 2014, when the figure shot up 29 per cent to £7,477. After that, the climb continued – the average value increased by 9.9 per cent in 2015 to £8,217, 34.7 per cent in 2016 to £11,066, and 15.1 per cent in 2017 to £12,737. Although this paints an optimistic picture for prudent investors looking to make a pretty penny from strategically buying and selling older models, the landscape of the marketplace could be about to change if some ominous warning signs are to be believed. By March 2018, classic car values had risen again, but only by 4.9 per cent. This may not sound so bad, but it’s the smallest increase seen since the value started going up four years ago. But does this mean those soaring values of older vehicles are about to start a downward spiral, similar to the one they were in pre-2014?

Nick Whale, managing director of Silverstone Auctions, told Car Dealer that some sort of decline is natural for the market, even if it isn’t an overly dramatic one. He said: ‘The market during the second half of 2017 was in decline and values of classic cars did fall some five to 10 per cent. The worst-hit brands were Porsche and Ferrari, which probably declined 10 to 15 per cent across the range in value during that time. ‘However, this was a market that had shown 10 years of continual growth in values and was becoming unsustainable in the long term. It was therefore a normal market correction. ‘As values started to decline, a lot of short-term investors decided to sell, which only added to the decline, until the natural forces of supply and demand redetermined the correct price level. ‘By early 2018, that period of hiatus and market adjustment had settled down and the more normal pattern of true classic car enthusiasts buying and selling classic cars had returned.’

Elon Musk’s ever-growing fan base

Rebecca Chaplin, p27

Auto Trader Retail Price Index (classic car – growth by age) 350% 350% 300% 300% 250% 250% 200% 200% 150% 150% 100% 100% 50% 50% 0% 0%

2017 2017

JanJan

2016 2016

Jul Jul

JanJan

2015 2015

Jul Jul

JanJan

2014 2014

Jul Jul

JanJan

2013 2013

Jul Jul

JanJan

2012 2012

Jul Jul

JanJan

2011 2011

Jul Jul

JanJan

2010 2010

Jul Jul

JanJan

(100%) (100%)

Jul Jul

20 - 25 years 25 - 30 20 25 years 30 - 30 35 years 25 All - 35 years 30 All

(50%) (50%)

2018 2018

74% 74%

£13,091 £13,091

55.5% 55.5%

£11,878 £11,878

37% 37%

£10,665 £10,665

18.5% 18.5%

£9,452 £9,452

0% 0%

£8,239 £8,239

(18.5%) (18.5%)

£7,026 £7,026

(37%) (37%)

He added: ‘Values are now stable and desirable, with the speculators largely gone. ‘Cars with good provenance are once again both selling well and rising in value. There will always be a demand for the very best of breed for all makes of classic cars and a relatively limited supply, keeping values strong.’ Looking again at Auto Trader’s data, we can see that classic Ferrari values have consistently been on the rise since 2012, when they were at £27,995, to March 2018 (£87,756). Meanwhile, values for Porsches more than 20 years old did see a couple of dips, but still rose from £11,213 to £45,399 over the same period. The statistics from Auto Trader also show that the values of classic Fords, Jaguars, Aston Martins and Bentleys, although rising overall since 2012,

JanJan

2017 2017

Jul Jul

2016 2016

JanJan

2015 2015

Jul Jul

JanJan

Jul Jul

2014 2014

all saw a total decrease between March 2017 and March 2018. In September last year, private banking company Coutts released a ‘passion survey’ which suggested that classic car values had been down 10.4 per cent in 2016 following years of strong investment. The bank’s managing director, Mohammad Kamal Syed, told us the trend had continued with some models but not others. ‘The trends seen in 2017 are continuing in 2018. Cars with unblemished provenance are still rising and there are plenty of buyers,’ he said. ‘Overall, sales volumes are down but the gap is widening between the very best and the not so good. In 2017 there were a number of record-breaking car sales, and of the top 100 most expensive cars sold, about half were Ferraris from the 1950s and

‘The market during the second half of 2017 was in decline and values of classic cars did fall some five to 10 per cent.’ Nick Whale

JanJan

2013 2013

Jul Jul

JanJan

2012 2012

Jul Jul

JanJan

2011 2011

Jul Jul

JanJan

£4,600 £4,600

Jul Jul

Price change from a change in mix Like-for-like Price changeprice fromchange a change in mix Average price Like-for-like price change Average price

£5,813 £5,813

Year-on-year Year-on-year growth growth

£14,304 £14,304

JanJan

Average Average asking asking price price

Auto Trader Retail Price Index (classic car)

(55.5%) (55.5%) (74%) (74%)

2018 2018

1960s. We are now seeing some more modern models becoming collectors’ cars, such as the McLaren F1, which sold for £11.49 million.’ The divergence in the market isn’t just to do with types of classic car but also the demographics of people buying them. Going back to Auto Trader’s data, we can see that the group of people purchasing the most vehicles more than 20 years old are those aged 30 to 35 years old, while those aged 20 to 25 and 25 to 30 lag behind quite significantly. However, 10 years ago, it was the 20-to-25 age group that bought most classic cars, which are the same people who are now in the 30-to-35 demographic. In short, the continual increase in classic car values we’ve seen over the past few years is starting to slow down, with some models doing better than others. That said, there’s a demographic of people who are continuing to invest, so this particular section of the industry won’t necessarily have a massive crash – just a lull that’s been a long time coming. CarDealerMag.co.uk | 07

Dashboard.

The greatest honour I have received in my life

Big Mike, p29

NETWORK

Terminated: But who will survive the great Vauxhall shake-up of 2018?

auxhall has served notice on all its UK dealers in a huge shake-up of the network. Stephen Norman, managing director of Vauxhall, recently revealed that he had been in talks with dealer groups and that it would be issuing notice to all of them on April 30, sparking a two-year termination period. He said: ‘All of the Opel and Vauxhall countries, that’s basically all of Europe, have been in contact with the investors (dealer groups) to announce that the decision has been taken to refranchise. ‘We’re terminating all of the current contracts with two years’ notice with effect from April 30 this year, and so the termination will come into effect on April 30, 2020. ‘Then, obviously it’s different by market, but in the vast majority of cases we will be proposing in the next few weeks new contracts to the majority of those retail dealers who

by REBECCA CHAPLIN @believebecca are currently with us.’ Currently, there are 326 Vauxhall dealerships in the UK, owned by 93 different groups, with more than 11,000 people employed within them. It is not known how many will remain after the shake-up. Effectively, this move is Vauxhall putting all its dealers under threat of redundancy so it can rehire the ones it wants to keep and shed the ones it wishes to lose. Norman added: ‘Each and every one of these cases will be subject to individual negotiation. Nobody is being sacked. The profitability of the network is positive in quarter one last year and the full year last year, but the amount of money being made is – in our opinion – insufficient. We want to protect the profitability of the franchise.’

The timescale given suggests that dealers will know by the summer whether they can continue with the brand. Norman said that registered letters were being sent to investors to advise them of the manufacturer’s intentions. He added: ‘In quarter three, we will be sending out the contracts to those investors who we are proposing new contracts for, and of course, the end of the process will be in 2020, when the two-year notice period comes to an end.’ Vauxhall’s sales have been falling dramatically in the UK over the past year – they were down a hefty 22 per cent in 2017.

Go Vauxhall rescues four outlets in London area NOW Motor Retailing has gone into administration, with Go Vauxhall buying four of its sites. Administrators Smith & Williamson were brought in to handle the affairs of Now Motor Retailing, which ran into financial difficulties in a ‘tough marketplace’. The group, which had a turnover of £83 million, employed more than 250 staff and operated seven Vauxhall dealerships – five in the London area and two in Wiltshire – with a head office in Surrey. The four sites – in Kingston, Heathrow, Hayes and Staples Corner – have now been taken over by Go Vauxhall, while its Swindon dealership has been 08 | CarDealerMag.co.uk

acquired by Eden Motor Group. The administrators are selling the head office to a third party. However, the company’s showroom in Marlborough wasn’t bought by anyone and nine jobs have been lost as a result. The additions to Go Vauxhall’s portfolio mean the dealer group now has 12 showrooms across the UK and an increased presence in the London area. Go Vauxhall is part of Go Motor Retailing, which is owned by PSA Group, Vauxhall’s parent company. Also under the Go Motor Retailing umbrella is Robins & Day, the manufacturer-owned PeugeotCitroen retail group.

Go Motor Retailing as a whole now comprises 27 Peugeot, 14 Citroen, seven DS and 12 Vauxhall franchises – and has a turnover of £885 million. James Weston, a director of Go Motor Retailing and CEO of Robins & Day, said: ‘Our first-quarter results across Go Vauxhall and Robins & Day have been promising and we have been able to maximise the opportunity from the four PSA brands to further improve our commercial results and ability to expand. Our relationship with Vauxhall has just begun, yet we can already see the opportunity with the brand and the model range – especially the new Grandland X.’

‘Each and every one of these cases will be subject to individual negotiation. Nobody is being sacked.’ Stephen Norman PSA Group took ownership of the Vauxhall brand in March 2017 and has dramatically changed its sales tactics. It has pulled back from daily rental and pre-registrations and in doing so has relinquished second place in the UK sales charts to Volkswagen.

Lookers axes pair of dealerships LOOKERS, one of the UK’s largest dealer groups, has elected to close two of its Vauxhall franchises in light of the brand’s decision to terminate all existing contracts with franchisees. The dealerships are in Yardley and Warrington. A spokesperson for Lookers said: ‘There are no plans to close any other Lookers Vauxhall branches. We are looking to minimise the number of potential redundancies. ‘The decision will safeguard jobs at Lookers’ other Vauxhall dealerships.’

CarDealerMag.co.uk | 09

10 | CarDealerMag.co.uk SUNDERLAND: Nissan has announced a ‘short-term’ reduction in production at its Sunderland factory. The Japanese firm declined to say if jobs would be lost. A statement said: ‘As previously communicated, we are transitioning to a new range of powertrains over the next year. As we make the operational changes required to support this, we will be managing a planned short-term reduction in powertrain supply and plant volumes at NMUK (Nissan Motor Manufacturing UK) in line with our 2018 Business Plan. We are discussing these operational changes with our employees.’ Around 7,000 workers work at the Sunderland site, which builds the Juke, Leaf and Qashqai.

Short-term reduction in production

BURY: Used car supermarket Cartime has reported 20.5 per cent growth over the past year, with profit of £1 million on turnover exceeding £34 million. The Burybased business said the year-on-year growth to the April 2018 year-end had been achieved alongside significant internal investment. It has plans for a second site, whose location will be revealed soon, as well as further expansion. The firm has reinvested £150,000 of the profit in stateof-the-art technology and operations to accelerate its ambition to achieve turnover of more than £50 million in the coming financial year. Cartime’s sales and customer staff numbers have also swelled by more than 40 per cent this year to a current team of 67.

Investment and expansion at thriving Cartime

EGLINTON: A new DS Store has opened its doors. Located in Courtauld Way, Eglinton, near Londonderry, it is a complete new-build, conceived from the ground up to represent the expanding premium French car brand. Embracing the very latest technology, the showroom provides new and used car buyers with a special environment to explore, experience, specify and purchase their next DS car. Andrew Miller, dealer principal of J C Halliday & Sons, Eglinton, said: ‘The opening of DS Store Eglinton is a great moment for all at J C Halliday & Sons. We share the vision of DS Automobiles that their premium and stylishly distinctive new cars reflect their owners’ status and vehicle aspirations. A DS Store has a very different feel to a traditional car showroom.’

DS Store opening ‘a great moment for us all’

What’s been hitting the headlines on the home front? Here’s a round-up of stories

SHEFFIELD: Bristol Street Motors in Sheffield is supporting local charity Africa’s Gift with a donation of footwear to its Shoes for Africa campaign. Over the past few weeks, colleagues at the Atterfield Road dealership, and operating company Vertu Motors’ headquarters in Gateshead, have collected everything from children’s school shoes to pairs of football boots. Rotherhambased Africa’s Gift was launched by Ken Dunn in 2010. The charity mainly supports business, educational and individual volunteer trips out to Africa to work on making a difference in rural communities in countries such as Lesotho, Tanzania, Zambia, Malawi and Uganda.

Dealership staff donate shoes to Africa

LEEDS: McLaren Automotive, the British creator of luxury sports cars and supercars, continues to expand its UK network of retailers with the appointment of McLaren Leeds, the brand’s eighth location in its home market. Catering for customers in Yorkshire and north-east England, McLaren Leeds joins the existing UK retailer network of facilities in Ascot, Birmingham, Bristol, Glasgow, Hatfield, London and Manchester. The new location will be operated by Park’s Motor Group, which also manages McLaren Glasgow. David Gilbert, managing director at McLaren Automotive Europe, said: ‘This new addition to the McLaren retail network is another key step in our growth plan.’

New McLaren outlet is ‘another key step’

News from around the UK

Dashboard.

CarDealerMag.co.uk | 11

WORTHING: The Worthing Suzuki team are celebrating their commended status in the category one group (up to 40 handovers) in the annual Motability Scheme Dealer Awards. The commendation recognises the great service they provided to customers of the Motability car scheme during 2017. The awards reward best practice and ensure customers receive exemplary service across the nationwide car dealer network. Peter Wilson, general manager for dealer relations at Motability Operations Ltd, said: ‘We are really impressed with the achievements of all our winners and commended dealerships including, Worthing Suzuki.’

Worthing Suzuki team are Motability marvels!

CHESTER: Swansway Peugeot Chester is one of just 14 Peugeot dealers in the UK to be named as a Lion’s Share 100 Club member. The club is restricted to dealers where 100 retail new cars have been sold during February and March. Thanks to a massive effort by Jay Dougan and his team, the centre achieved its goal. Delighted brand director Andrew Wakelin commented: ‘What a brilliant achievement by Jay and his team. All their hard work and effort has paid off and I’m incredibly proud of their achievement.’

Dealership is enjoying lion’s share of success

ELLESMERE PORT: Workers at Vauxhall’s car factory have overwhelmingly backed a pay deal worth a lump sum of £750 and a 1.5 per cent rise in January 2019. The agreement mirrors one accepted by workers at the firm’s van plant in Luton. The Unite union said Vauxhall’s owner, PSA, should repay the commitment of workers at Ellesmere Port with investment in new models at the facility. Unite general secretary Len McCluskey said: ‘Unite’s Vauxhall members at Ellesmere Port, like their colleagues at Luton’s van plant, have overwhelmingly backed the pay deal. Our continued focus is to secure investment from PSA in new models at Ellesmere Port and guarantee the plant’s long-term future.’

Call for investment after pay deal acceptance

KENT: BMW has opened its first UK Urban Store at Bluewater Shopping Centre. Following the template of BMW Urban Stores around the world, the Bluewater store provides casual browsers and serious shoppers with a fresh and enjoyable way to experience the latest models from the BMW range. Managed by Stephen James BMW, the store has eight product geniuses – specially trained staff members who can demonstrate the latest features and are highly knowledgeable on all aspects of BMW vehicles and offers. Visitors can also use the latest technology to enhance their car-buying experience.

‘Fresh and enjoyable way’ to experience BMW

NOTTINGHAM: BCA has announced the start of a major development programme at its Nottingham remarketing and defleet centre, with the construction of a new auction lane complex that will add significantly to the facility’s volume and throughput. A new building featuring back-to-back auction lanes and a central barista bar is now under construction. Work commenced immediately after Easter and the new facility will open in the autumn of this year. Stuart Pearson, managing director of BCA’s UK remarketing operation, said: ‘We are delighted to announce that this major development programme to further improve facilities at our Nottingham centre is now under way.’

Major development project gets under way

LONDON: H.R. Owen’s Rolls-Royce Motor Cars London dealership hosted the ultimate luxury drive-out event for its aftersales customers in and around west London. To celebrate being part of an exclusive H.R. Owen Rolls-Royce owners’ club, clients gathered at the aftersales department in Acton to begin their convoy around the west of the capital, starting at Cliveden House Hotel. From Cliveden, the drive-out moved on to the 18th-century Winning Post pub in Winkfield for refreshments to complete the luxurious and memorable experience.

The ultimate luxury drive-out experience

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Dashboard.

News from somewhere other than the UK

Around the World: p30

Harrison

MORE FROM LEASING

Production issues help non-EU hybrid makers SAFETY FIRST: Nobody has ever died in a Volvo XC90 in the UK since the firstgeneration model was launched in 2002, according to Thatcham Research. The vehicle safety technology research company says that the five-star Euro NCAP rated SUV has a number of factors that have helped it achieve this. Both the first and second generations of the car have a comparatively large mass, which means it’s physically tougher in a collision. However, it also has a lot of passive safety features, such as a solid structure, good restraints and airbags. This helps keep occupants safe when the car is involved in a collision with a larger vehicle. The second-generation model, manufactured since 2014, is fitted with helpful technology too, such as autonomous emergency braking (AEB) and lane-keep assist as standard, giving the car the ability to actively avoid a collision.

New survey highlights the declining popularity of diesel-powered cars

ust 13 per cent of drivers in the UK would opt for a diesel as their next car, according to research from Close Brothers Motor Finance. The shocking figure, which comes after Ford’s UK managing director Andy Barratt told the BBC that consumers are buying fewer diesel cars, was revealed by the finance firm’s survey, in which it spoke to 200 car dealers and 2,000 motorists in November and December 2017. The data also revealed that 67 per cent of drivers are less likely to buy a diesel vehicle as a result of industry scandals such as VW’s dieselgate in 2015. According to industry body the SMMT, diesel cars were the UK’s vehicle of choice five years ago, taking a 54 per cent market share compared with petrol’s 45 per cent. That’s no longer the case though, as consumer confidence in the fuel type has been damaged by dieselgate and the British government’s announcement of a ban on the sale of new petrol and diesel vehicles in 2040, with the market share for diesels now having dropped to 38 per cent. According to Close Brothers’ ‘Britain Under the Bonnet’ report, 45 per cent of car dealers say their customers are now shunning diesel cars as a result of the 14 | CarDealerMag.co.uk

by TRISTAN SHALE-HESTER @tristan_shale

negative publicity surrounding them, as well as the vehicle excise duty increase that came into force earlier this month. Although the 13 per cent figure is a dramatic one, it’s likely that it will be some time before this affects the used car market, with the SMMT showing that new car sales have declined in comparison with used car sales. Sean Kemple, director of sales at Close Brothers Motor Finance, said: ‘The number of days it takes to sell a car has remained static for petrol on used forecourts, with diesel suffering and alternative fuels becoming the forecourt heroes. ‘The ongoing decline in new diesel car registrations since the VW scandal in 2015 and the government’s increased commitment to clean air through banning all fossil-fuel cars by 2040 has made for a volatile trading environment, but dealers remain confident. ‘Until this deadline draws closer, there will still be demand for diesel cars, particularly from high-mileage customers who value the fuel economy.’

s the automotive sector struggles with declining new car diesel sales and economic fluctuations, there are two distinct pockets of growth emerging – new car hybrid registrations and personal leasing. Combine the two, and there’s a prime opportunity for retailers and brokers to get ahead. According to the latest data from the SMMT, alternatively-fuelled new car sales grew 49.3 per cent in April compared to April 2017. FLA statistics show that the value of consumer new car leasing grew by four per cent in February, accounting for 12 per cent of total new car consumer finance. On our online marketplace, the competitively-priced Hyundai Ioniq is the most inquired about hybrid to lease so far in 2018. It’s closely followed by the Kia Niro and Toyota C-HR. Notice anything about the top three? Not a European manufacturer in sight. The recently introduced Mini Countryman PHEV and refreshed Mitsubishi Outlander PHEV make up the top five most popular hybrids to lease. However, our data shows that an interesting story is also unfolding further down the top 10, with Volkswagen’s Golf and Passat GTEs. At the time of writing, order books for both models were closed. The reason? ‘Unprecedented demand’, which has led to long delivery lead times, according to Volkswagen. The popularity of the Golf and Passat GTEs up to this point showed consumers are willing to transition to a hybrid if they’re offered a hybrid drivetrain in a popular and recognisable existing model. Until the production issues are resolved, this will continue to push new customers (and those with soon-toend finance agreements) either towards fresh models like the Ioniq, Niro or C-HR, or back towards pure petrol variants of the Golf and Passat. For dealers and brokers looking for the sweet spot for hybrid leasing, 70 per cent of hybrid offers on our marketplace are offered with rentals of less than £400 per month with most inquirers opting for three-year agreements combined with an 8-10,000 per annum mileage allowance. So far this year, most of the growth in hybrid leasing has benefited non-EU manufacturers. Is this an early indication of broader trends to come post-Brexit?

‘Hyundai Ioniq is the most inquired about hybrid to lease so far in 2018.’

Paul Harrison is head of strategic partnerships at ContractHireAndLeasing.com

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Dashboard. FAR EASTERN PROMISE

Spotlight on the best of Beijing

hile European motorists will hold up Paris, Geneva or Frankfurt as the most important automotive shows to visit, it’s impossible to deny the role played

by the emerging Chinese car market. Put simply, the Chinese just can’t stop buying cars, and their tastes influence us here in the west. Check out these cars from the recent Beijing Motor Show.

MSO McLaren Cabeen Collection Based on McLaren’s Sports Series machine, the Cabeen Collection car boasts a bespoke Obsidian Black paint finish with a hand-painted gold dragon on each door. Just five will be made exclusively for China.

Lexus ES The mid-sized executive saloon class is hotly contested and the Lexus ES could be the car to take the fight to the BMW 5 Series and Mercedes E-Class.

BMW iX3 China is the world’s leading market for electric vehicles, so the Beijing Motor Show was a suitable place for BMW to unveil its iX3 concept car, which comes with the marque’s fifth generation of eDrive technology.

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16 | CarDealerMag.co.uk

Skoda Kamiq

Mercedes-Maybach Ultimate Luxury Concept

Details on the upcoming Skoda Kamiq are still scarce, but we do know that it’s designed to be a ‘mainstream city SUV’. Skoda increased its sales in China by 2.5 per cent to 325,000 units in 2017.

With current market trends heavily favouring SUVs, Mercedes has decided to test the waters with a concept uber-machine. This concept is the last word in huge luxury vehicles.

Mercedes A-Class saloon China prefers saloons to just about any kind of car – even SUVs – so Mercedes decided to unveil the latest version of its A-Class in saloon form to Chinese punters.

Electric Toyota C-HR Although not actually revealed at the show, Toyota did confirm an all-electric C-HR is due to arrive in 2020 as part of its aim to retail 10 electric vehicles in China.

MG-X Motion The all-electric MG-X Motion concept could well be the basis of a major assault on the large vehicle market. It brings a sharp aesthetic that looks as though it’s punching well above MG’s usual weight.

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Dashboard.

New car registrations up 10 per cent

Latest SMMT figures: p62-63

New COO takes the reins at BCA’s remarketing arm BCA has announced that Stuart Pearson has been promoted to chief operating officer for its remarketing division. Pearson takes over from Simon Henstock, who has retired from the business and the industry after a 40-year career with BCA. Pearson has been with BCA for nearly 25 years, starting as a management trainee. Avril Palmer-Baunack, BCA’s executive chairman, said: ‘We are delighted to appoint Stuart Pearson to this significant role. ‘His experience and passion for the industry will be critical as we continue to drive our business forward and meet the increasing demands of a fast-moving marketplace. ‘We also wish Simon Henstock all the very best as he enjoys his well-earned retirement.’ Auctions, p66

A PERFECT PARTNERSHIP

Used car dealers still rule – but for how much longer?

Marshall is a great place to work – for the eighth year in succession!

arshall Motor Holdings is the highest ranking automotive company in the 2018 Great Place to Work list for the UK. The dealer group, which employs 3,978 people, ranked 21st in the competition’s category for large companies with more than 500 members of staff. This is the eighth consecutive year that Marshall has achieved Great Place To Work status, being recognised for having a high trust and high engagement workplace culture. The methodology behind the ranking involves a survey of all of a company’s employees, as well as an audit into the business’s management and HR practices. Helen Burrows, director of HR at Marshall, commented: ‘Our culture is built around a core set of shared values. Our commitment to upholding these values, encouraging our colleagues to share their valuable opinions and ideas and then us acting on what they have said, creates the foundation for our Best Workplaces culture. ‘We are very proud to have achieved Best Workplaces ranking for the fourth consecutive year and be the number-one automotive company. This is testament 18 | CarDealerMag.co.uk

Greenyer

by TRISTAN SHALE-HESTER @tristan_shale

to the high levels of engagement we have from our colleagues, evidenced by the 76 per cent participation rate and our trust index scores, and to our ongoing commitment to ensure Marshall is a great place to work. ‘We are particularly proud that our last survey results included, for the first time, our 1,200 colleagues from the Ridgeway acquisition. This reassured us that the integration programme enabled them to settle in and embrace our culture. Finally, I’d like to take this opportunity to thank all our colleagues for their commitment to the company and to our customers.’ Ben Gautrey, chief operating officer at Great Place to Work, added: ‘We are delighted to see Marshall on our Best Workplaces list again this year. ‘It is a validation of the strength of their leadership and their commitment to creating the kind of culture where employees enjoy coming to work and want to do their best.’

ccording to recently released data from electronic vehicle health check provider autoVHC, UK motor dealers are under pressure in their aftersales businesses. The company’s research of 500 UK franchised dealers found a 19 per cent drop in vehicles presented at their service departments. While, of course, there will be a number of reasons for this decline, it does highlight the importance of giving customers a great experience at the very start of their journey with a dealership in order to engender loyalty that will bring them back. This is underlined by findings from recent research commissioned by Raphael Finance . Despite the growing presence of online platforms for used car sales, the dealer still rules when it comes to used car purchases. There is, however, an important age divide to recognise amongst used car buyers. The largest proportion of used car buyers opting for a franchised dealer came from the 55+ age group (47.8 per cent), closely followed by 45- to 54-year-olds (38.2 per cent) and 35- to 44-year-olds (32.4 per cent). The younger car buyers – aged 16-24 – favoured an independent dealer (40.4 per cent). Buying privately was also favoured by the youngest car buyers, with 39.6 per cent of 16- to 34-year-olds opting for this route. Clearly price – and the range of choice on the forecourt – will have an influence on where the car buyer goes. 63.7 per cent of respondents said they chose the seller they did because they had the right car, at the right price. And budgets are definitely tighter for younger car buyers, with 65.4 per cent of 16- to 24-year-olds saying they chose the seller based on price. The old marketing adage of ‘getting them young’ therefore still has merit. And this makes even more sense when looking at the buying habits of the new generations of car buyers. It has already been well documented that millennials favour online routes for many aspects of their lives, from how they bank to where they live and their holiday choices. And with over one in 10 car buyers aged 16-34 saying they bought their last used car via a car sales website, this is likely to be a growing trend. Any good salesperson knows they can’t stand still. And now, more than ever, the motor retail sector has to adapt and change, to ensure they capture – and keep – the used car buyers of the future. Offering a ‘complete’ customer experience will continue to play an important role, with add-ons such as finance, insurance and warranties helping dealers to add value to their proposition.

‘The motor retail sector has to adapt and change.’

Darren Greenyer is deputy head of lending at Raphael Finance.

Car buyers spend more time on Auto Trader

For every 60 minutes a buyer spends looking for a vehicle, 45 of them are spent on Auto Trader 5

5. comScore MMX Multi-Platform, Media Trend, October 2017, U.K.

CarDealerMag.co.uk | 19

Dashboard. RESULTS

Profits and revenue fall at Cambria C ambria Automobiles saw profit before tax fall by 14.3 per cent to £4.8m for the six months ending February 28, 2018. Revenue fell by 4.5 per cent to £295.1 million compared with the same six months in 2017, as revealed in the group’s interim results. As expected in the current market, new vehicle sales fell by 16.2 per cent but profit per unit increased slightly to offset this. Used vehicles sales also took a slight hit, down by 0.8 per cent, but profit per unit increased by 7.8 per cent to offset this. Overall, units were down by 6.7 per cent but this was slightly counterbalanced by a 9.7 per cent increase in the profit per unit. Aftersales remained a strong area for the group, with revenue up 6.1 per cent compared with the same period last year, and up 1.1 per cent overall. In January, Cambria bought Bentley Essex and Kent, and relocated it to the group’s newly refurbished facilities at the existing Chelmsford and Tunbridge Wells sites. It also took on a Lamborghini franchise at the Chelmsford site.

The group’s first McLaren dealership opened in January, operating at its Hatfield site. Chief executive Mark Lavery commented: ‘We’re actually only seeing one area of our business that’s dropped and that’s new cars. ‘Used cars is a significantly improved contribution year-on-year in profit terms and aftersales is seeing significant growth. ‘If you take a look at some of our brand partners, particularly on the volume side, they’re the ones that have dropped most dramatically. In premium and high luxury – which we’ve been very active in, introducing Lamborghini, McLaren and Bentley to the group – they have produced good, strong results.’

He added: ‘In new car market terms we’ve gone through 12 months of decline, so technically we’ve been in recession for six months now. April has shown some growth, which is encouraging. ‘I think that current government clean air policy is bordering on farcical and we need to get some clarity as to what the government expects. ‘They also need to listen to automotive engineers rather than people who are less qualified, in my opinion.’ Lavery explained that he believes the demonisation of diesel cars has put people off buying new. However, with a strong used car presence in its portfolio, he also believes that Cambria can grow in this area. ‘I think we can do more on used cars. If we could just sell one more used car a week in each franchise it gives a very different look to our economics,’ he said.

Cambria has added McLaren to its portfolio of manufacturers

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Dashboard. A GRAND TOUR

Lookers fully charged and all ready to go

Motor retailer is heading along Electric Avenue to raise as much money as possible in Ben’s Industry Leader Challenge.

xcitement is building at national motor retailer Lookers as it launches one of the biggest charity drives in its history. The motor group has grabbed tight hold of the Ben Industry Leader Challenge baton, which is passed on every year by a business or organisation within the motor industry to raise vital funds for the charity. This year the challenge is being shocked back into life with the Lookers Electric Charge, which will see people from the dealership chain, including senior directors, travel more than 2,000 miles to over 180 stops around the country, including its 155-strong network, in a glorious relay of electric cars, including a Jaguar I-Pace. As well as raising money for motor industry charity Ben, the carbon-neutral challenge will also promote some of the benefits of electric motoring. as well as showcase the wide range of EV cars now available from most of the group’s 31 franchised brands. 22 | CarDealerMag.co.uk

Lookers CEO Andy Bruce There will be a number of headline-grabbing events along the way, including charity skydives and the ultimate showdown between an electric car and bike in a race across London. Lookers will also be going one step further in its commitment to the environment by adopting areas of woodland en route, as well as buying up carbon credits to ensure it hits its environmental target. Each stop along the way will also include everything from EV test-drive events, carbonneutral days and school visits, which will help to

educate the next generation of motorists about the future of EV motoring. It’s a huge initiative and one that will last all the way through to October, with Lookers raising vital funds for Ben, all of which will be collected in its travelling ‘Lucky bank’, modelled on the group’s newly launched four-legged mascot Lucky. Previous challenges have seen a skydive by Marshall Motor Group chief executive Daksh Gupta and a cross-Channel swim by a team from Jaguar Land Rover, including UK managing director Jeremy Hicks. While Lookers chief executive Andy Bruce is keeping his feet firmly on solid ground, he’s nevertheless well aware of the scale of the challenge. ‘We are very excited to be launching the Lookers Electric Charge and have lots of activities planned, all of which will enable us to shine a light on a number of

Edinburgh

Glasgow

Newcastle Sunderland

Belfast

Carlisle

Blackpool

Dublin

Liverpool

START

Middlesbrough

Blackburn

Leeds

Manchester

Sheffield

Crewe

Wolverhampton Worcester

Birmingham Braintree Colchester

London Canterbury Guildford Eastbourne Brighton

FINISH

The route

A special children’s book will be launched to promote the Lookers Electric Charge and help the next generation of motorists learn about electric cars important topics and join timely conversations, whether that’s assessing where the electric car industry is at the present moment, the actions we can all take to reduce our carbon footprint and, of course, the fantastic work that Ben is doing within the motor retail community,’ he said. ‘It really is a huge undertaking, one that will engage so many of our people across the business and require them to think creatively. It’s a challenge which I think our people will be very keen to get involved in.’

The Jaguar I-Pace

THE Lookers Electric Charge kicked off on May 14 at Audi Dublin before travelling to the sprawling 30-acre Charles Hurst site in Belfast, where colleagues from all 18 brands based there were ready and waiting to do their bit. It was then due to go up to the team at Renault Newtownabbey for one of the EVs to be transferred over the Irish Sea to Audi Ayr. The relay will then travel down the length of Britain until it reaches Mercedes-Benz Eastbourne in October. En route, the relay will also be stopping at a number of race days, the Electrification Suite at Jaguar’s Castle Bromwich facility and Ford’s iconic factory in Dagenham. And it will be what happens inside the cars during this mammoth journey that will be just as important as what happens along the route.

As well as being sponsored by local businesses, each leg of the journey will feature a variety of in-car entertainment from staff at Lookers, which will be uploaded to the company’s social media channels using the hashtag #LookersEC4Ben. People from across the business, including directors and technicians, will be helping to raise extra funds as well as enjoying themselves in the process. There’ll be reviews of the EVs they are driving, industry discussions and, just to ramp up the fun factor, a spot of carpool karaoke. (We’re expecting one or two renditions of Electric Avenue by Eddy Grant!) But why exactly would Lookers’ people be so keen to throw themselves into a rendition of the electro-reggae classic? Well, apart from wanting to show off their vocal range, the fact that they are supporting Ben will be the biggest motivator.

Showing our appreciation FOUNDED in 1905, Ben is a charity that has become a lifeline for many people within the motor industry. It provides tailored, holistic care and support services focused on the four main pillars of health and wellbeing: financial, physical, mental and social. Last year saw Ben help more than 3,000 people from all corners of the industry. Andy Bruce says: ‘Ben works tirelessly to support many of our colleagues, friends and associates, so it is fantastic that we now have the opportunity to show our appreciation through the Lookers Electric Charge. ‘With so much planned and so much participation expected from colleagues right across our brands, I’ve no doubt that we’ll be able to do the charity proud.’ Zara Ross, chief executive at Ben, said: ‘We

are delighted that Andy Bruce and the team at Lookers are taking on this year’s Industry Leader Challenge to fundraise for Ben. We really appreciate their support.’ It will be at the charity’s flagship Ben ball in December that Lookers will announce the total raised by the Electric Charge, as well as hand the Ben Industry Leader Challenge baton to the next recipient. But there’s lots to cram in before then and you can follow it all on the Lookers Electric Charge microsite at lookers.co.uk/ec4ben, the Lookers YouTube channel LookersWebTV, and Lookers’ Facebook and Twitter pages @ lookersgroup, all of which use the hashtag #LookersEC4Ben. Altogether now... ‘We’re gonna rock down to Electric Avenue...’ CarDealerMag.co.uk | 23

Dashboard. KIA

Marathon effort nets £50k for charity

ith enough training miles under their belts for a round trip to the manufacturer’s factory in Slovakia, Team Kia raised £50,000 to support a children’s charity at the 2018 London Marathon. President and CEO Paul Philpott ran for the second year and was joined by seven colleagues from across the company tackling the course on one of the hottest days of the year. Coping well with the high temperatures, the members of the team were spurred on by the massive crowds lining the route. Team Kia were running on behalf of the company’s UK charity partner, the Children’s Trust, which provides specialised care and support for young people affected by brain injury – often sustained in road traffic accidents. The charity has its head office and national care centre near Kia’s base in Walton-on-Thames, Surrey. Philpott said: ‘Running this year’s London Marathon in record temperatures was tough but an incredibly positive experience. ‘I’m so proud of the team in taking the time to train and compete in the marathon. Knowing

that we have raised £50,000 for the Children’s Trust makes every step worth it. This money will make a huge difference to the lives of young people with brain injuries.’

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Behind the scenes REBECCA CHAPLIN

Blackball Media’s head of editorial is never afraid to tell it like it is

How Musk is winning the marketing war for millennials’ hearts and minds

ow do you compete with a car brand led by a celebrity? It would be like trying to market your headphones better than Dr Dre’s Beats or your music service better than Jay Z’s ‘Tidal’ brand (well, maybe not the latter). There’s something admirable about a business owner who is happy to completely rip up the rule book and do things their own way, but then there is Tesla owner Elon Musk who is taking things to extremes. I started writing this column in early May, when things were looking bad for Tesla. If you were watching rolling news broadcasts on the day, you would have seen that his conference call with analysts was the talk of the town. There has always been the cult of personality surrounding Elon Musk but now it seems as though he is becoming almost a caricature of himself. I do a lot of early-morning phone calls with dealer bosses, as some of you will know, when their quarterly, half-yearly or full-year results come out. Never, ever has a dealer or manufacturer boss turned around to me and said my questions were ‘boneheaded’ or ‘dry’. Maybe they’ve thought it, but they’ve never been rude enough to actually point it out. So, Musk decided to dismiss questions during his phone call, shares began to drop, but as he said at the time, it’s not his job to make you buy stock. He then moved on to questions from a YouTuber for a full 20 minutes. The response to the embarrassing Tesla phone call with analysts was not good, despite diehard fans of the brand continuing to praise Musk and his empire. He used his preferred form of communication, Twitter, to set the agenda again though. He started with: ‘Please ignore this thread unless you’re interested in a tedious discussion about Tesla stock’ and then justified the rude responses he had given to his questioners. I don’t want to change tack completely and start talking about the freedom of the press, but it’s our job to ask annoying questions that we deem to be ‘in the public interest’ and try to coax replies from people. Those reading this who are trained to handle media inquiries will know there is a fine art to answering with a smile but not actually supplying the information we might be looking for! Even though Musk’s tweets were just as short and sharp as his responses were during the phone interview, he received high praise nonetheless. He added that the reason a particular question about

Model 3 demand was absurd is that Tesla has roughly half a million reservations, despite having done no advertising and having no cars in showrooms. Even after reaching a production level of 5,000 cars a week, it would take two years just to satisfy existing demand even if there were no fresh reservations. I’m sure many out there would be jealous, whether you run a small site or a multi-national company. Imagine the luxury of being like Elon, saying you don’t care what investors think, writing online that talking about your company’s finances is tedious and then that you won’t be able to deliver cars ordered for at least two years. I’m sure enough of you have been faced with a three-month lead time on cars ordered and know the rage that can bring out in customers, even if they were warned at the time. But regardless of the foibles surrounding Tesla, people still love Musk and still seem to buy his cars. When the conference call storm erupted, I thought Musk was done for. I’ll admit, I was totally drawn in by the tech entrepreneur in the early days, but even I have found that his new Kanye West attitude in the press and on social media is getting a bit wearing. I know, how many musicians can I mention in one column aimed at the motor trade? Actually, one more, because Musk recently turned up at the Met Gala with musician Grimes on his arm. It’s not often we see a car manufacturer boss photographed on the red carpet of this prestigious charity event – in fact, I can’t recall it happening before. That must have been the biggest news to come from the Musk camp that week though, surely? Well, no, he also tweeted that he would be ‘starting a candy company and it’s going to be amazing’ and that generated a huge amount of interest too. A lot of people love Tesla cars, having never even got behind the wheel of one, while others love the man because they think they know him through that weird window which is social media – so how on Earth would you compete? It’s one of those things that seems far away and intangible, and I know we talk about it all the time, but millennials are his fans. They engage with his brand because it appeals to them far more strongly than any maker of conventional combustion-engined cars. A lot of them might not be able to drive yet but they’re dreaming of living a life like Elon, and rather than those sports cars you had on your wall, they’ve got a mid-sized electric saloon on their iPhone home screen.

‘It seems as though Elon Musk is becoming almost a caricature of himself.’

Rebecca Chaplin is head of editorial at Blackball Media and presents news programmes and features on its online video channel Trade Plates TV. CarDealerMag.co.uk | 27

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Big Mike Our man on the inside shares his thoughts on the car business

The day I became a rugby club legend (shame it cost me £500, though!)

couple of weeks back, I was given one of the biggest honours of my life. I was named president of my local rugby club, an organisation with which I’ve been involved since I was a young man. In fact, my debut coincided with Margaret Thatcher being elected Prime Minister. As a confirmed left-winger, my political disappointment meant I felt the need to smash into a few people, so I joined up as a 19-year old and had a whale of time using my bulk to vent my frustrations. The rugby club is where I first became known as ‘Big Mike’, a name that has stuck with me over the years, as you may have guessed. Anyway, fast forward to my presidential inauguration ceremony, which involved eating cheese and pickle sandwiches and drinking port whilst watching the 1st XV do their stuff. While observing the lads spend a happy afternoon giving away sloppy penalties in their own 22 and getting battered by a deficit of 70 points, a chap called Barry reminded me of one of my finer moments, which, I have to confess, I had all but forgotten about. Barry’s in his seventies now, but completed a spell as club chairman about 15 years ago – a time when I was still turning out as tight head prop for the second team, despite the fact my neck had long since disappeared into the upper reaches of my spine. We were then, and still are today, good friends. On one particular weekend, I’d sold one of my part-exchanges on the Friday night before the game, and after taking the deposit, I discovered that the car’s new owner lived just five minutes’ walk from the club. As (a) we had an away game that weekend and (b) I like beer, I came up with a cunning plan. That plan was to drive the car – a tired but dutiful Escort – to its new owner’s home and walk the rest of the way to the club. With no car, one of my team mates would feel duty-bound to give me a lift to the away fixture, and I could anaesthetise my inevitable neck injuries with copious amounts of alcohol after the match. It was the perfect plan. The only fly in the ointment was that our game was in a fairly rough part of the West Midlands, and I didn’t really like the idea

of going there with £500 in my bag, which would be there for the taking if any ne’er-do-well were to enter the changing rooms while I was busy making myself half an inch shorter by sticking my head in a very silly place. So, it was with some relief that, while I was waiting for my lift, Barry turned up to unlock the clubhouse ready for that afternoon’s 1st XV fixture. Not only did it mean I could go for a muchneeded pee with dignity, but it also meant I could stash the £500 somewhere where it was less likely to get nicked. I was hopping from one leg to another, so I stuffed the money in a pint glass and ran off to the loo, shouting back, ‘Barry, just so you know, I’ve left £500 behind the bar.’ Imagine my surprise, then, when I returned to the clubhouse three hours later to be greeted by the 1st XV skipper, who enveloped me in a massive bear hug and told me I was ‘the true definition of what a rugby club is all about’. He was followed to the entrance door by his knuckle-dragging team mates, who despite getting hammered, all seemed to be in terrific spirits and were declaring their undying love for me. Putting this down to rugby players being naturally a bit weird, I went to the loo (again) and then called a cab, before nipping behind the serving hatch to get my day’s earnings. Except, there was a solitary tenner left. In my haste to get to the toilet, I realised that Barry had completely misinterpreted my message, and had assumed my £500 was a philanthropic gesture for the good of the club. The 1st XV and Barry himself, as I deduced from the fact he was asleep on a trestle table, had taken my £500 behind the bar to be my contribution to the good of the club. And so it was that I became a legendary figure in the club’s history, and thankfully the ten quid I had left in the pot was just enough to pay my cab fare home. It was bloody annoying at the time, but in fairness, I don’t regret it. After explaining the real truth to Barry a couple of weeks later, he rewarded me by putting ‘Big Mike Motors’ and my phone number on the 1st and 2nd XV shirts, and the coverage we got in the local press probably made my £500 investment worthwhile. Plus, it was genuinely funny. Until I told the wife…

‘My presidential inauguration ceremony involved eating cheese and pickle sandwiches and drinking port.’

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

Dashboard. Around the world Dealer news from somewhere other than here

Hard-hitting opinion from Car Dealer’s founder

James Baggott: p82

CANADA

ELECTRIC car manufacturer Tesla is planning to open a dealership in the Kitchener district of Ontario, giving a new use to a building that’s currently a Saab outlet. The premises were sold to a real estate company acting on behalf of Tesla by brothers Ron and Ray Kraishnik, well-known members of the local community and with nearly 40 years’ experience in the automotive industry. The building will be renovated to meet Tesla’s needs.

AMERICA

CONNECTICUT is launching a pilot programme so that self-driving cars can be tested on its public roads. Towns and cities are being invited to apply to become test sites and four areas will be chosen for the trials. State governor Dannel P Malloy said: ‘Make no mistake, autonomous vehicles are the future of transportation. We cannot allow our state to be outpaced as this technology grows.’ No date has yet been set for the start of the testing programme.

SOUTH AFRICA

A TOTAL of 36,346 new cars were sold in South Africa in April – a figure that was up 3.6 per cent year-on-year but down 26.2 per cent month-on-month. Finance company Wesbank said: ‘Irregularity in new vehicle sales continues to contribute to market uncertainty.’ The second half of the year is expected to be more positive.

CHINA

INFINITI is to build five new vehicles in China over the next five years, beginning with the all new QX50 SUV. Roland Krueger, the manufacturer’s chairman and global president, said the fresh models would help the company triple its sales in China, its fastestgrowing market. He added: ‘As part of our road map to electrify our portfolio, we anticipate that by 2025, more than 50 per cent of new Infiniti vehicles sold globally and in China will be electrified.’ In 2017, Infiniti sold a record 48,408 vehicles in China, a 16 per cent increase over 2016.

CAMBODIA

JAPANESE carmaker Isuzu is planning to expand its presence in Cambodia with the opening of two more showrooms in the country. Having launched a dealership in Phnom Penh last year, the company wants showrooms in Siem Reap and Battambang too. A company spokesman said they had great confidence in the local market and that even more dealerships could follow.

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CarDealerMag.co.uk | 31

Dashboard.

Part 14: Selling

Your forecourt’s full, the phone’s ringing, punters are flooding in. Now it’s time to seal the deal… Dan Read gives you the lowdown.

e’re up to part 14 of this guide now, and it’s taken this long to get around to the very thing we’re here to do: sell cars. Which probably tells you all you need to know about the importance of the groundwork. At some point though, the magic moment will come,

and you’ll throw open your doors for the first time. But before you blow up the balloons and decorate your forecourt, spare a moment to read some advice. Because believe it or not, if you’re doing things right, the cars could pretty much sell themselves. To find out more, we turned to the Car Dealer forum for some expert advice…

Whitestone679231

RH Trading

In this internet age, any monkey can sell a car. That’s the easy bit. The car is usually sold before the buyer actually sees a salesman. The hard work has already been done – buying the right stock with the right spec, prepping it and advertising in the right places without giving all your margin away.

AutoJacob

Being a salesman is the last quality these days. You’re also a valeter, painter, mechanic, child minder, dog minder and counsellor (that one depends on the punter).

Rory RSC

Most customers aren’t here to be sold to – they’re actually here to pick up the car they’ve already chosen. 32 | CarDealerMag.co.uk

If you’re the owner and operator of a small dealership, there’s no such thing as regular hours, it’s 24/7. I employ two people in my sales team and they’re fantastic – they work alternate weekends between them, start at 10am and are still here most nights at 6 or 7. We have live chat and that’s always on and responded to within minutes.

Earunder

Keep your office modern, avoid clutter and keep the forecourt clean and tidy. We have a concrete forecourt – we changed it from a gravel one due to local cats sh***ing everywhere. Go for a smart casual appearance and consider staff uniforms: our sales team have blue jeans and branded polos/jackets and mechanics wear branded overalls. On that note, brand awareness is key to a long and sustainable business. We invested for

years in brand awareness and as such do not have the reliance on Auto Trader. Last year, our return business was 41.7 per cent. It pays off over time.

Matt Reid

Remember, proper punters pay proper money. So ask proper money for your proper cars, and accept you may not be busy seeing customers, but you won’t be a busy fool either. I was more profitable selling 160 cars last year than when I sold 255 three years ago.

BHM

In my experience, 95 per cent of the time, a punter turns up to see a particular car, so they’re half-sold before viewing. So it’s straight, frank, honest talk all the way for me. Anyone talkingup their cars or making false promises is asking for comebacks. As for opening hours, I run on appointments so my phone is answered when

Anyone talking-up their cars or making false promises is asking for comebacks. BHM it suits me. Phone calls at 9pm are ignored (very few phone the next day) and my phone is definitely off on a Sunday.

Earunder

Selling cars is stressful and takes up most of your time, but if you can’t break away from it to have a family or social life, then running a business isn’t for you. If you get the correct stock and prepare it correctly, a car will sell itself. And just be honest

– the customer has travelled to see the car, not to hear you waffle on.

Mark101

Selling is easy if the car is right – the challenge is buying stock at the right price and managing the costs of prep, which should be to a high standard, whilst retaining a decent margin.

Grant8064

I don’t think I have ever actually ‘sold’ a car. Like everyone says, good stock sells itself. The real skill is knowing when NOT to sell to someone. Always think about profit retention!

RH Trading

People aren’t stupid and can spot when you’re coming on with any sales techniques – we had someone come to look at a Q5 S line, lovely car, £25k, then went away to look at another at a

local Audi main dealer. But they came back and bought ours, saying they didn’t like the pushy salesperson at the main dealer. That’s where we win. As small independents, we can give so much more than some of the big boys by NOT being your stereotypical dealer.

RH Trading

We ditched shirts and ties about five years ago and have some nice branded uniforms, cargo pants, polo shirts and fleeces. And as for balloons and bunting, that might have worked 20 years ago, but these days the car is 90 per cent sold before the buyer turns up. They usually come for a specific car they’ve seen online and if you handle it right, people buy the car.

Have A Word With The Wife

Proper cars will sell themselves, we just supply the trade plates and facilities… CarDealerMag.co.uk | 33

Feedback. Your comments via email to dave@blackballmedia.co.uk

Our website at CarDealerMag.co.uk

It’s a normal deal but is I’M PROBABLY just being paranoid, but when something almost seems too good to be true, alarm bells start ringing. I’ve just had a phone call on a 5 series BMW. The chap asked if it was still for sale, it is, so he says he’s setting off from Birmingham. He asked if we do internet banking because basically he’s coming to take it away. Apparently he went to look at another one but it sold before he got there. So I send him my postcode and confirm that the funds will need to be showing as cleared in my account before I’ll release the car, obviously. I dig out the paperwork and realise the MOT expires soon. We’ll happily put a new MOT on the car, but can’t do that today. So I ring the customer back expecting him to be disappointed, but he just says: ‘Looking at the condition I can’t see it being much of a problem.’ He’s right, and on the face of it, this all seems like a normal deal, but it all just seems too easy... I’m almost suspicious. Should I be? Or am I just looking a gift horse in the mouth? It all seems a bit odd, people aren’t normally happy to take a car with just over a week’s MOT. Ocsltd The only problem I see here is you are potentially selling a car to someone that may need things doing. Unless of course you’ve done a PDI. As for being suspicious, believe it or not there are people out there who just want to buy a car and not f*** around. Especially if he was close to buying one before but lost it, he’s probably eager to make sure he gets this one. I think we get so many ‘just looking’ types it seems alien when you find someone who just wants to actually buy a car. EPV I hate selling a car (of any value) without doing a new no-advisory MOT, service and PDI (at an independent garage) before handover – as you’re leaving yourself open to not being completely

Picture of the month Blackball Media managing director Andy Entwistle has been raiding the classifieds in recent times, and there seems to be something of a theme developing. Here, we see his newly-acquired 2.0-litre Renault Megane and Vauxhall VX220, which have both been much admired by the Car Dealer writers. All he needs now is a submarine, a brick road and a copy of that Coldplay song, and the collection will be complete!

‘belt and braces’ with regards to being able to prove it doesn’t have a fault at point of sale. However, if the customer insisted and he signed the invoice with an annotation where you state you’ve offered a new MOT but the customer declined and get him to sign a point-of-sale customer satisfaction form, then I guess you’ve done about all you can. Another point is: my Mrs works for a bank and tells me lots of horror stories: one is that she reckons bank transfers can be recalled before the end of the day, but it’s unusual. Can he not pay by chip and pin? Do you use your own warranties or bought ones? NOACROSS What on earth’s all this whingeing about a customer wanting to transfer money? I’ve never read such rubbish and anyone who thinks selling via a credit card is foolproof is deluding themselves. If you want to worry yourself to death, just think, the next punter might be a crazed axe murderer who slaughters you on the test drive. Better stop trading then! Come on guys, get real! You’re all over-thinking this. BHM I know what you’re saying, and to be honest I’d rather confront an axe murderer than have some cheeky low-life scumbag try and screw me out

of my hard-earned on the sly. Sadly, in this day and age, there are too many scamming chancers out there and you can’t trust anybody. He’s been, paid in full, by debit card, and gone. I can now sleep easier tonight, until the inevitable phone call, but I’ll deal with that if and when it happens. OCStltd

Advertising matters Does anyone out there use a strapline in their advertising? You know the sort of thing, ‘never knowingly undersold,’ ‘bloody good cars,’ ‘not too shabby’ etc. Met Nobody ever regrets buying quality. Screenman 100,000-mile warranty or the nearest set of traffic lights, whichever comes first... trade vet One of the pitches we supply gives a ‘concrete’ warranty – once it’s off their concrete you’re on your own! MGM We’re not here today gone tomorrow... we’re here today gone tonight! chief runnin bee

Top tweets After a very expensive issue with my wife’s car, I can’t praise the service department at Morpeth branch highly enough. Over and above what we expected. Thanks #ford @paulhowey

working through the ranks to Chief Designer for Interiors! GO Vauxhall @GoVauxhall

The all new #Dacia #Duster will be coming to the UK soon and the rumours are flying! Dacia Aberdeen @daciaaberdeen

Getting ready for flight to Birmingham. Great to meet colleagues in @MacklinMotors Edinburgh and Glasgow today! Keep up the great work. Robert Forrester @vertumotors

Did you know that the original #VauxhallCorsa designer Richard Shaw still works at #Vauxhall,

The All-New #FordFiestaActive is here! Hendy Group @hendygroup

34 | CarDealerMag.co.uk

Here is Mr Gillians collecting his new SsangYong Korando from sales executive David Christian. #happyhandover #SsangYong Motor Mall IoM @MotorMallIOM

More and more of our readers are joining the debate – and it couldn’t be

On Twitter: Follow @CarDealerMag

Forum: CarDealerMagazine.co.uk/forum

it too good to be true? Three days in, my buyer says their car is leaking oil... In the event of an oil leak (unconfirmed quantity) within the first three days of purchase, can a customer exercise their short-term right to reject? The car is 13 years old. My thought is that oil seals can and will perish after 13 years so I consider it to be a statutory repair. I’ve offered to repair but sadly the customer continues to refuse and appears to have decided it’s just a wrong ’un. Not willing to roll over on this one though. Mojo121 I’d just get it back, life’s too short. Let him be an idiot with someone else. andymc1973 The devil is in the detail. A correctly-worded PDI would state there had been no such leak at the time of sale. Had the customer signed it, it would be virtually impossible to prove it was there at the point of sale. If there is no correctly-

worded PDI, you are left vulnerable. Suggest to your customer that he returns the car to you for further inspection and diagnosis. You’ll soon know if this is buyer’s remorse or a genuine issue. Take it from there. EPV After three days, even if you win your argument, that customer sounds a right plonker and will be with you with mentioning every squeak and rattle for the next six months. After three days, the car shouldn’t have done any mileage and should still be prep cleanish. I would get it back as soon as possible, give him his money back minus £200 until he gives you the log book back if it’s gone to the DVLA and get on with your day. I find headaches like this just put you in a bad mood for days. justina3 I bet the oil leak is nothing. Reminds me of the

time I sold our close friends a Metro so the wife could use it as a runabout. It was a mint low miler. However, a few days later they called to tell us about a severe oil leak and their stress etc. So I go round and there was a small speck of oil on their drive. I say, that’s nowt, it’s a Metro, they all do that. However, our friend has OCD with cleaning and their loft is cleaner than our lounge. She could not stand the thought or the shame of having a small oil mark on her block-paving which the neighbours might see. I told them to go and buy a new car and they did. trade vet Our PDI doesn’t have a section for engine oil leaks. The more this goes on though, the more I think it’s a ruse for something else. Lots of excuses etc. Maybe I came across too soft at the time of sale but I’m still trying to hang onto my faith in people being generally all right. Mojo121

EV CHARGING

We are very focused on customer experience WE WERE sorry to hear of James’s setbacks with electric vehicle charging (Car Dealer issue 122) and wanted to address a few of the points made in the article from an industry perspective. The EV charging industry has to operate in a safe, practical way to ensure certain standards are met. Compromise is not always possible without falling below these standards, which can have very serious consequences. The EV charging industry is also a relatively new one and while there are still some challenges to resolve, the rate of innovation is very fast and new solutions are being launched all the time. Being ICE-d (EV lingo for being blocked from charging by an internal combustion engine vehicle) is a common complaint and the industry is exploring a number of solutions to tackle this. Better signage and better bay markings are starting to have an impact, while enforcement by on-site staff is often the best deterrent. Furthermore, with the growth in the number of EVs,

we now hear complaints of EVs blocking charging bays without actually using them to charge. This is an example of the new challenges emerging as the industry progresses, and we are always exploring ways to tackle these. Public chargepoint availability is growing in line with adoption. Our user data shows that most drivers charge overnight at home, followed by the workplace, and that only a relatively small percentage of charging is done using public chargepoints. Clearly this emphasises the importance of getting home-charging right. Public infrastructure is being rolled out rapidly via a collective approach across industries and some exciting developments in the pipeline look set to dramatically increase the ratio of chargepoints per plug-in vehicle. When it comes to awareness, EV adoption and charging infrastructure is growing exponentially but a disproportionate amount of media coverage hones in on the problems.

Conversely, we know that sentiment among actual EV drivers tends to be positive, and a great example of this is how we see clusters of EVs grow in certain neighbourhoods due to word of mouth. Positive developments in the industry such as smart charging, the falling costs of lithium ion batteries and the fact that huge swathes of public chargepoints are free for customers to use, often escape highprofile media attention. More than 90 per cent of Pod Point’s public chargepoints (including rapids) are available at no cost to drivers. Where can people fill up with petrol or diesel free of charge? At Pod Point, we are very focused on customer experience. As such we publish all our reviews online. We are also continuously improving our smart charging products. Melanie Defries PR Manager POD Point Ltd, Banner Street, London

easier to get involved! Sign up to our forum at CarDealerMagazine.co.uk/forum

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CarDealerMag.co.uk | 35

PHYSICAL AUCTION Get to your dealership nice and early to beat the rush. Search for cars online and deal with telephone enquiries from customers. Welcome unexpected customer into showroom and take on test drive. Carry on searching for more cars and decide on auction to visit. Put in diary and shuffle other appointments around to clear day. Brief team on customer enquiries and any stock actions such as servicing, smart repair or valeting. Set the sat nav. Handle multiple calls and messages with customers and staff while en route. Stop at services for a coffee and a baguette, checking all emails and any voicemails, returning any urgent calls. Fill up the car. Get stuck on the motorway for an hour in traffic. Sat nav suggests another route via back roads. Get stuck on the back roads too as everyone else’s sat nav has done the same thing. Arrive late at auction. Find parking space. Return missed calls. Check emails again. Discover some of the preferred cars have already been sold. Assess other cars going through the lanes and make quick decision on whether to make a bid or move on to the next. Bid on desired cars and buy. Complete the admin. Check emails and messages. Back in the car, stuck on the motorway for an hour and a half in another traffic jam. Stop at services for a loo break and check messages. Pick up a packet of crisps and a sandwich that’s seen better days. Arrive back at dealership tired, to several messages that need responding to. Catch up with the team on actions from the day and tomorrow’s schedule. Make calls. Send emails. Start searching for more cars coming up at next auction. And repeat….

36 | CarDealerMag.co.uk

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CarDealerMag.co.uk | 37

Finance. SSANGYONG

Zero per cent deals offered over five years on models S sangYong has announced a zero per cent finance and zero deposit offer over five years on its Tivoli and Tivoli XLV diesels. Zero per cent finance over five years is also being offered on the Tivoli and Tivoli XLV petrol and Korando SE, SE 4x4 and LE manual and auto models with a deposit of 30 per cent. Nick Laird, managing director of SsangYong Motor UK, said: ‘SsangYong is now known for its extremely well-equipped cars at superb prices, and with these new offers we can help customers save even more money on their cost of motoring. These latest offers will help SsangYong owners better plan their finances over five years. ‘With fair and affordable prices, comprehensive levels of equipment, a five-year limitless mileage warranty and Korean reliability, we are sure our customers are getting the best-value cars available in Britain.’ Prices start at £149 per month for the Tivoli SE petrol. Available with either a 1.6-litre petrol or diesel engine, the new Tivoli

compact SUV, pictured, comes with air conditioning, alloy wheels, cruise control, seven airbags, Bluetooth connectivity and remote keyless entry. Sharing the same platform and wheelbase as the Tivoli, the XLV features a lengthened body and an expanded load capacity of 720 cubic litres. It also comes with a choice of either a 1.6-litre petrol or diesel engine, and prices start at £205 a month for the ELX petrol manual. Meanwhile, the Italian-designed

Korando crossover is available with a petrol engine and two-wheel drive from £189 per month, and as a diesel from £199 per month. It’s powered by 2.0-litre petrol or 2.2 diesel engines, and the equipment includes automatic air conditioning, cruise control, heated front seats, privacy glass and rear parking sensors. The Korando SE 4x4 won the class award for vehicles under £24,000 in The Caravan and Motorhome Club Towcar of the Year 2018.

FLA FIGURES

Consumer motor finance new business falls five per cent in March NEW business in the point-of-sale business in March of nine per cent (POS) consumer car finance market by value and 15 per cent by volume, fell five per cent by value and 10 per compared with March 2017. cent by volume in March, compared The percentage of private new car with the same month in 2017. sales financed by FLA members at Figures released by the Finance the POS was 89.4 per cent in the 12 & Leasing Association (FLA) show months to March, up from 88.5 per that in the first quarter of 2018, new cent in the same period to February. business grew three per cent by value, The POS consumer used car finance while volumes fell by one per cent market reported new business up compared with the same quarter in four per cent by value in March, 2017. The POS consumer new car while volumes fell by one per cent, First response - Strip 04/05/2018 compared 11:15:13 finance market reported a 1.pdf fall in1 new with March 2017. C

CMY

38 | CarDealerMag.co.uk

Geraldine Kilkelly, head of research and chief economist at the FLA, said: ‘Trends in the new car finance market in the first quarter of 2018 are likely to have been affected by the impact on demand for private new cars in Q1 2017 of changes to vehicle excise duty introduced in April that year. ‘However, in the first quarter of 2018, point-of-sale consumer car finance new business volumes overall were only one per cent lower than in the same period in 2017.’

MOTONOVO

Top award presented in Berlin MOTONOVO Finance was named Bank-Owned Independent Finance Provider of the Year at the Motor Finance Conference held in Berlin. Collecting the award, Luke Curtis, head of motor – commercial and SME finance for MotoNovo, said: ‘This represents an impressive achievement for our business. ‘I’m very proud of our team and the many people and partners with whom we work and the spirit of collaboration that has made this success possible.’ In recognising MotoNovo, the judges said they were looking for the lender best able to show a track record of working well with intermediaries and success in improving business volumes.

WARNING

Independents ‘facing threat’ INDEPENDENT retailers are being urged to offer used PCPs to foil the new threat of contract hire companies. Jonathan Holland, MD of Adesa Remarketing in the UK, said: ‘The independent sector needs to prepare for the possible challenge posed by contract hire and leasing companies, who have easy access to vehicles, by making sure they have the best possible stocking lines in place and are able to offer customers competitive PCPs.’

IN ASSOCIATION WITH

Time is money BEN GARSIDE

A monthly look at the world of automotive finance and marketing

Make sure you embrace social media – you ignore its power at your peril !

ast month I went through the changes in artificial intelligence, which included driverless cars/taxis, robots that will deliver parcels and takeaways, oh and systems that can write your email subject lines for you. That’s some crazy innovation right there, and I’m hoping this article can keep your innovative brain flowing… At the end of April I went to a great event called BrightonSEO. If you’ve not heard of it I would advise that you look it up and if possible get yourself a ticket for the next event. It is run twice a year by Kelvin Newman and his team and started out in a function room of a pub, with a few digital marketers who were SEO enthusiasts. From what I’ve learnt it has come a very long way and has developed from what was just a search engine optimisationorientated group to a fully fledged digital marketing conference. The conference was huge, with approximately 3,500 attendees, and the tickets had sold out in 13 minutes. People travelled from around the world to gain knowledge and insight, I know of people who came from the USA, Japan and New Zealand – now that’s some commute. So what did I learn, and why am I bringing it up? Firstly, there are always new things to learn! I learnt a significant amount at BrightonSEO, and I would consider myself well educated in the digital marketing arena. I’ve attended course after course and been in a non-stop working environment of digital marketing over the past 15 years, but the digital arena is forever changing and evolving, with new developments every day. There is a struggle

to keep on the pulse in this occupation. Secondly, I learnt that Facebook as a medium is easier to get wrong than I’d thought. So many major companies are struggling, and attendees discussed that Wetherspoons had decided to pull its social presence completely but that it was almost impossible. The reason is that consumers can now add their own location pages. If they start adding images and fake or copied branding, they can then rate your business. So, even if you’ve decided not to be involved in social media and your dealership doesn’t have a page, it will only take one customer to add your dealership as a location (place) and you will be on social media. I could go on for hours talking about what I’ve recently learnt but I won’t. Instead, I’d like to give you a couple of tips: 1. Sign up for some additional learning. BrightonSEO was a great fit for me but maybe it’s CDX for you, which has a lot of good content. This year’s CDX will probably have happened by the time you read these words but there’s always next year’s. Or maybe you want to invest your time in a business management/sales course to sharpen your axe, so to speak. No matter what you do choose, you’ll see the benefit and it’ll open your mind to innovate within your business. 2. Embrace social media. You’re probably doing so anyway but if not you need to if you want to grow. Consumers will write about you and set up pages for you, even if you’re not on social media yourself. So get your own page set up, because as a company you are expected to reply to any comments and the negative impact can be huge if you choose not to.

‘The digital arena is forever changing and evolving, with new developments every day.’

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 | 39

Dealfinder.

Finance. YOUR ESSENTIAL GUIDE TO MID-SIZE CROSSOVERS

Peugeot 3008

Nissan Qashqai THE Sunderland-built Qashqai has been hugely successful for Nissan, effectively creating the rapidly growing crossover segment we know today. Here we’ve chosen the 1.2-litre turbocharged petrol engine with 113bhp, in high-spec Tekna trim. Standard equipment includes 19-inch alloy wheels, LED headlights, heated front seats, a Bose sound system and an electric driver’s seat. Nissan is currently running a zero per cent finance offer, with a customer deposit of £6,654. The customer then makes 36 monthly payments of £232, bringing the total at the end of the three years to £15,006. If the customer then wishes to buy their Qashqai, a final payment of £11,479 brings the total amount to £26,485. Because of the attractive finance offer, it works out the same as the cash price.

THE 3008 is one of the most striking-looking crossovers on sale, with its chrome grille and bold, modern interior. It’s also been well received by customers and motoring journalists alike. This deal applies to the GT Line trim that features adaptive LED headlights, wireless charging, front and rear parking sensors and satellite navigation. Our pick is the 1.2-litre PureTech petrol engine with 129bhp. A customer deposit of £5,849 is needed, following which they make 36 monthly payments of £253.09. By the end of the term, they will have paid £14,960.24. If a customer then wants to buy their 3008 outright, an optional final payment of £14,905 can be made, bringing the total amount to £29,865.24. This works out at about £3,000 more than the cash price because of Peugeot’s 5.9 per cent APR rate.

PARTNERSHIP

Dealers benefit from £50m stock funding, thanks to collaboration H undreds of UK dealers have benefited from access to more than £50 million in stock funding thanks to an innovative partnership between NextGear Capital and Dealer Auction. The collaboration, which has been in place for three years, has let dealers access immediate funding for vehicles won through the online auction portal. Dealer Auction – a subsidiary of Cox Automotive UK – is the UK’s largest trade-only online portal and auctions more than 9,000 partexchange and trade cars every month to over 5,500 independent dealers nationwide. It gives customers access to previously hard-toaccess stock via a single digital platform, and has integrated many sister- Strip Cox2.pdf Automotive businesses First response 1 04/05/2018 11:17:40 C

CMY

40 | CarDealerMag.co.uk

by JOHN BOWMAN john@blackballmedia.co.uk

over the past three years. Its partnership with NextGear Capital, a leading provider of stock funding plans, allows customers to seamlessly fund stock purchases on the auction website with one click. Pamela Halliday, sales and marketing director at NextGear Capital, which is also part of Cox Automotive, said: ‘It is great to have reached this terrific milestone. No-one knows the motor trade better than our two companies, and we’re thrilled to have funded over £50 million of sales for Dealer Auction.’ Kieran TeeBoon, pictured, managing director for

Dealer Auction, said: ‘Our clients love how simple it is to fund vehicles through the integration of NextGear Capital into the Dealer Auction platform, and it is just one of the reasons why we have experienced terrific growth over the past few years. We know how busy motor dealers are, and our aim is to make buying, funding, moving and advertising cars simpler than it is anywhere else. ‘We’re confident that the business will continue to grow throughout 2018, and we will continue to innovate the auction site and improve the already great service and results for vendors and buyers.’

First response - Column.pdf 1 04/05/2018 11:21:49

IN ASSOCIATION WITH

Seat Ateca THE Ateca was Seat’s first crossover and has helped the Spanish manufacturer increase its sales significantly since going on sale in 2016 – helped by the smaller Arona crossover, too. Our choice here is the punchy 148bhp 1.4-litre petrol engine in SE Technology trim. Standard kit includes 18-inch alloy wheels, sat nav, LED headlights, cruise control and rear parking sensors. Seat is currently offering customers a £1,500 deposit contribution, to which the customer adds £5,850. This is followed by 36 monthly payments of £216.19, meaning that at the end of the three years they will have paid £13,632.84. They can then choose whether or not to pay the optional final payment of £12,150, and a £10 option-to-purchase fee, bringing the total amount payable by the customer to £25,792.84 – £1,300 more than if the car had been bought with cash because of Seat’s six per cent APR rate, even with a deposit contribution.

APPOINTMENTS

REPORT

Fiona and Lee join RCI in marketing and sales director positions

Average UK motor retail profitability falls by 6.7 per cent

RCI Financial Services has made Fiona Mackay its new marketing director and Lee Wheeler its sales director. Mackay joins from Toyota Financial Services, where she held the position of general manager of marketing and digital experience. She has more than 20 years’ experience of sales and marketing roles in the UK motor industry, having started her career with Ford Motor Company. Wheeler has more than 20 years’ experience of working in senior retail and fleet roles within the UK motor industry for OEMs and motor finance houses. He joins from Fiat Chrysler Group’s Captive Bank, where he was sales and marketing director. He has also held senior positions at Santander Consumer Finance, as well as Honda UK and Honda Finance Europe. Both appointments are with immediate effect and they will report to RCI Financial Services MD Jean-Louis Labauge. RCI Financial Services is the finance company for four of the UK’s leading car brands: Renault, Nissan, Dacia and Infiniti.

AVERAGE UK motor retail profitability was down 6.7 per cent in March 2018, according to ASE. The automotive retail profitability specialists say that the average UK car dealer made a profit of just less than £107,000 in March, equating to a year-on-year decrease of £7,700. This means the overall result for the first quarter was 7.5 per cent less than for the first three months of 2017. But although the drop is a significant one, it falls short of the 12.4 per cent decrease in new car registrations in the first quarter. A decrease in aftersales contribution in March meant a significant drop in overhead absorption. This has been attributed to the poor weather at the start of March, as many firms were unable to recover the hours lost in the workshop and didn’t manage to match their 2017 performance or achieve growth.

CMY

CarDealerMag.co.uk | 41

Forecourt. FIRST DRIVE

Suzuki Swift Sport It’s a car that Suzuki says is designed to excite and boasts a low, wide stance with aggressive styling. But what’s it like to drive? Over to Ryan Hirons... What is it? For a long time, the Suzuki Swift Sport has proven to be the go-to choice in the warm hatch segment. Since its introduction in 2006, it’s managed to deliver a driving experience similar to hot hatches well above its (rather low) weight on a budget price — despite being down on power in comparison. Well, it’s back again for 2018 — and Suzuki will be hoping it can continue to carry the nameplate’s success into the turbocharged generation. It may have new rivals on the block, such as the long-awaited Up! GTI, but can it stay ahead?

Hello turbo

This is the first turbocharged Swift Sport, with a Vitara S-sourced 1.4-litre unit under the bonnet.

What’s new? The biggest addition to the new Swift Sport comes under the bonnet. Gone is the naturally-aspirated 1.6-litre engine of its predecessors, and in its place sits a turbocharged 1.4-litre motor sourced from the larger Vitara S. Helping to keep power on the road is a host of tweaks, including a revised six-speed gearbox from the outgoing Sport model, an adjusted steering rack for improved handling and an upgraded braking system. There’s a fresh face, too. Based on the latest generation of Swift, the Sport brings aggressive looks and a 40mm wider body than the base car.

Wide load

It’s 40mm wider than the regular Europeanspec Swift – matching the measurement of its Japanese counterpart.

What’s under the bonnet? The 1.4-litre, Vitara S-sourced turbocharged four-cylinder engine produces 138bhp and 230Nm of torque, which is sent to the front wheels through a six-speed manual gearbox. It’s capable of taking the Swift Sport from 0-60mph in 8.1 seconds and up to a maximum speed of 130mph. As for efficiency, Suzuki claims 47.1mpg can be achieved on the WLPT combined cycle with CO2 emissions of 135g/km. It’s a punchy little motor, offering a good amount of low-end torque with a consistent power delivery throughout the rev range.

What’s it like to drive? Although the engine may not have as much character as a result of the ever-necessary turbocharging, the overall package still remains a serious amount of fun on the roads. Steering is a little on the light side but feels 42 | CarDealerMag.co.uk

direct enough to position the car accurately while allowing corners to be taken with confidence. Understeer can be induced if you really try hard enough, but most of the time it’ll take anything thrown its way in its stride. Thankfully, and as has always been the case with the Swift Sport, the focus on making it a sporty machine hasn’t detracted from its ability as a city car thanks to the great base underneath. It rides well – an improvement over its often-firm

predecessors – and is agile enough to get around town with ease.

How does it look? The Swift Sport doesn’t even attempt to hide what it is. A new, muscular face appears on the model along with carbon fibre-effect side skirts and a rear diffuser. Trademark dual exhaust pipes complete the look. The Sport is also 40 millimetres wider than

Successful diet

The new Swift Sport weighs a mere 975kg — 70kg less than its predecessor.

THE KNOWLEDGE Model as tested: Suzuki Swift Sport Price: £17,999 Engine: 1.4-litre four-cylinder turbocharged engine Power: 138bhp Torque: 230Nm Max speed: 130mph 0-60mph: 8.1 seconds MPG: 47.1 Emissions (g/km): 135 TARGET BUYERS: Second-car buyers, looking for a stepping stone to full hot hatch ownership. THE RIVALS: Ford Fiesta ST-Line, VW Up! GTI.

‘The Suzuki Swift Sport continues to deliver a driving experience that punches well above its weight.’ the base Swift, which results in a notably more aggressive stance on the road — aided by new 17inch alloy wheels, finished in black and silver. A new colour has been introduced exclusively for the warm hatch. Named Champion Yellow, it stands out from the crowd with ease — although more conventional hues are on offer too.

What’s it like inside? The Suzuki Swift Sport has never been known for having a luxurious interior – which has played a key role in keeping it cheap – and it’s no different here. Sadly, an increased price means this can’t be as easily excused as before. The cabin is recognisable as that of the Sport thanks to the addition of red trim panels throughout, while new bucket seats and a thin steering wheel are also included in the package. Although the seats and steering wheel are a marked improvement over the standard car, sadly

it all still feels hard to the touch and not on a par with rivals at a lower price point — namely the Fiesta ST-Line and VW Up! GTI.

What’s the spec like? The Suzuki Swift Sport boasts the rarity of being offered without an options list – with tons of equipment included as standard. Out of the box, there are plenty of safety assists in the car – such as hill hold control, adaptive cruise control, lane departure warning, high beam assist and a reversing camera – while luxuries such as the heated bucket seats, sporty steering wheel and Suzuki’s infotainment system on a seven-inch display with navigation and Bluetooth all feature for no extra cost. While the package may look great, it doesn’t quite make up for the £17,999 price tag. With the outgoing model retailing for around £15k, it may prove a hard sell.

KEY SELLING POINTS: 1. Packs tons of fun into a small package. 2. Retains everyday usability despite increased performance. 3. Eye-catching looks. DEAL CLINCHER: Accessible performance in an everyday usable machine.

What do the press think? Auto Express said: ‘The Sport feels like a slightly more muscular version of the standard car – which for some will be fun, but owners of old Swift Sports will be left wanting more.’ Autocar added: ‘Handling could be more responsive, but it’s fun nevertheless.’

What do we think? The Suzuki Swift Sport continues to deliver a driving experience that punches well above its 975kg weight — offering great levels of fun and sportiness. It used to be a real bargain buy but its new £17,999 price tag puts it rather close to the likes of the upcoming Fiesta ST – which is sure to be a better driver’s car. The Suzuki may have all the equipment, but buyers will probably be more interested in the behind-the-wheel experience which, bearing in mind the new price, can be rivalled easily. CarDealerMag.co.uk | 43

Forecourt.

FIRST DRIVE

Mercedes A180d Mercedes A-Class powertrain engineer Oliver Ebelsheiser talks to Car Dealer How does it feel to be launching the new Mercedes A-Class? It feels very good, because we’re very proud of the new vehicle. It’s a big step forward compared with its predecessor, and although that car was very successful for us, this vehicle is better than that one and we expect it to sell even better. What have been the big challenges in terms of powertrains? The big challenges are always the same: improving fuel consumption, improving emissions more so, and at least keeping or improving the same

performance. There’s always that challenge and it’s getting harder and harder because of emissions and the steps you can make are much smaller than they have been before now. There’s a war on diesel across Europe right now. Does it make sense to add another diesel engine to the model line-up? Diesel proved extremely successful for us on the last A-Class, so for now at least, it makes a lot of sense to expand on that going forward with the new car.

Can we expect electrification to make its way to the A-Class? We announced that we will have electrical vehicles in each and every platform in the future, including our compact car platform – meaning we will have an electrified version at some point. Will that electrified car be hybrid or fully electric? We are thinking about both options. Hybrid probably makes the most sense as there are competitors out there with hybrids, so we’re planning to have the same.

Ryan Hirons puts the new car through its paces and delivers his verdict What is it? Premium hatchbacks have fast become one of the most popular segments on the market, with three clear leaders – the Audi A3, BMW 1 Series and Mercedes A-Class. Despite this, they’ve all remained relatively unchanged for quite a few years now, but Mercedes has been the first to pull the trigger on the new generation.

What’s new? Although this is still instantly recognisable as an A-Class, there’s plenty of new tech and engineering. The biggest selling point is a new infotainment system, dubbed MBUX (Mercedes-Benz User Experience). There’s semi-autonomous technology and a range of new engines — two petrol and one diesel.

What’s under the bonnet? Powering our test car is a new 44 | CarDealerMag.co.uk

1.5-litre four-cylinder diesel engine paired with a seven-speed automatic dual-clutch gearbox. It’s not the most powerful of units, but it’s brisk enough for daily usage and feels refined.

What’s it like to drive? The Mercedes A-Class delivers a no-frills driving experience, going about its business in a muted but capable manner. If you want to drive enthusiastically the car will allow you to do so, but it won’t be that much fun – it’s much better suited to long-distance cruising.

How does it look? The A-Class is the latest Mercedes to take on the manufacturer’s more angular design language. It remains instantly recognisable as a member of the German firm’s hatchback model line, but the new look is effective in bringing it up to date.

What’s it like inside? As you should expect with a car of this calibre, the A-Class is a luxurious and comfortable place to be. There are plenty of premiumfeel materials throughout the cabin, such as synthetic leather upholstery, metal-effect trim pieces and a nappa leather steering wheel. Not only does it all feel good to the touch, but it’s solidly put together too.

THE KNOWLEDGE

Model (as tested): Mercedes A180d Price: £28,540 Engine: 1.5-litre four-cylinder diesel Power: 114bhp Torque: 260Nm Max speed: 126mph 0-60mph: 10.3 seconds MPG: 62.7 Emissions (g/km): 108 TARGET BUYERS: Younger drivers and families. THE RIVALS: Audi A3, BMW 1 Series, Volvo V40. KEY SELLING POINTS: 1. Tech-laden affair. 2. Class-leading build quality. 3. Benefits from new design language. DEAL CLINCHER: Cutting-edge tech sprinkled over a class-leading package.

What’s the spec like? Our test car came in AMG Line trim, meaning standard equipment included 18-inch alloy wheels, AMG bodystyling, LED headlights, keyless start and the MBUX system displayed on a seven-inch touchscreen. Highlights on the options list include heated and ventilated seats, active parking assist and two 10.25-inch displays – one for the instrument cluster and another for the MBUX system.

What do we think? The new Mercedes A-Class has set a benchmark for the next generation of premium hatchbacks, and one that may prove tough to beat for impending competitors.

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Feature.

g n i p m Ca it up!

Volkswagen California in California by Tom Wiltshire

If you’re the sort of person who enjoys camping but despises the idea of waking up in a soggy tent, having struggled for too long the day before to erect the thing in the first place, then your go-to will probably be a campervan. While there are many shapes and sizes, there is one that is synonymous with the name – the Volkswagen camper. With vehicle excise duty low on commercial vehicles, more people are turning to pick-ups and vans as second vehicles to support their hobbies. Jack Evans and Tom Wiltshire took two VWs camping in very different settings.

Volkswagen Amarok

Volkswagen California

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he Volkswagen camper. Second only to the Beetle in terms of instantly recognisable VWs, it’s got to rank near the top of the most iconic vehicles ever, hasn’t it? Most people’s minds will instantly go to the original – the Type 2 Microbus. But Volkswagen is keen to remind potential buyers that the California has evolved – and so it invited us for a celebratory road trip around the American state from which it takes its name. The California moniker was first used on campers built by famed camping brand Westfalia. Never officially applied to a Type 2 or bay window camper, it first appeared on a T3 in 1988. Westfalia built another on the front-engined T4 platform, then VW itself took over production in 2003. The T5 California was the first to be officially built by Volkswagen in its own specialist facility – just down the road from where the vans themselves are made. For 2018, the California is based on the latest T6 Transporter, and benefits from all the latest advancements – a car-like cab, retro styling details, plus class-leading refinement, driving manners and safety kit. After a 10-hour flight, we landed at LAX and took ownership of ‘our’ California. While the majority of Californias sold worldwide are diesels, to bring a fleet of Volkswagen oil-burners to the US would be a PR disaster – so our vans were 2.0-litre TSI petrol models, with four-wheel drive and DSG automatic gearboxes. They were ‘Ocean’ versions, which gain a fully-

The T6 California is remarkably car-like to drive, Tom found

Icons one and all: The VW camper is equally at home on Route 66 and at the Golden Gate Bridge

Camping for the first night above Rincon Point on the Pacific Coast Highway fitted kitchen unit alongside a sliding rear bench. Cheaper ‘Beach’ models do without cooking facilities but still retain a pop-up camper roof and space to sleep four. After a brief tour courtesy of VW’s international press team, we fired up the air conditioning as protection against the fierce California heat and set off to our first destination – Venice Beach. Picture ‘surfer dude’ and the chances are you’re visualising the chap we met there: a guy by the name of Martin. Every day, he parks his fleet of

Type 2s on the seafront and offers surfing lessons and board rental to anyone who’s been drawn in by his colourful garage. He’s been here for eight years, and built himself up from living in one of the vans to owning several of them – and retiring every night to a real house. ‘The VW van is the icon. It’s the star of TV and film, and I think that’s why it’s endured so much,’ he told us. ‘It’s what’s helped my business grow. If you’d told me back then, when I was living in the van and peeing in bottles, that one day I’d own

so many, I would have said you were crazy.’ And would Martin indulge in the latest T6 California if VW sold it in the US? ‘Of course,’ he said. ‘I’d give anything to own one of those.’ After departing from the beach we headed to our overnight stop – driving down the iconic Pacific Coast Highway as we did. The T6 California really is remarkably car-like to drive, though a diesel engine would no doubt suit it better. The smooth-shifting DSG, ample power reserves and incredible refinement all made for a painless journey, leaving us plenty of time to admire the scenery. As we took in the coastline, the locals took in our vans. Stopping at traffic lights, we had no shortage of admiring glances, with drivers often winding down their windows to inquire about the California. ‘Is that an import?’ they asked. ‘You can’t call it a California if you don’t sell it here. Tell VW that. We want to buy this van.’ Our first overnight stop, with a stunning view of the coast, gave us an opportunity to test the California’s camping features. Building this van from the ground up has allowed VW to use every inch of space within, and it’s packed with features. Once you’ve raised the electric pop-top from the neatly integrated control panel and slid the front seats round to face the comfortable rear bench, you can wind out the built-in awning and start chilling out. A pair of sturdy camping chairs stow away in the tailgate and a freestanding table sits just inside the sliding door. As for the side kitchen unit, it hides a two-burner CarDealerMag.co.uk | 47

Feature. Dealer view Beryl Carney, brand director at JCT600’s Volkswagen Van Centre in Hull Is there a particular pattern that emerges with the sale of Californias? It’s a very seasonal purchase. March, April, May and June are the months when we start escalating the sales. A particular customer of ours rents Californias out, so he buys new vehicles every year for the season. He’s becoming a regular customer for us and has taken 35 so far this year. How many vehicles do you sell each year in total? We’ve done 104 until the end of April, and Californias make up a big chunk.

There’s nothing like cruising in a California... but other methods of transport are available!

gas hob, a sink with running water, a top-loading fridge and bags of storage. Though you’d be hardpressed to live in here permanently, it’s ideal for a weekend away. When it comes to sleeping, you’ve got two beds to choose from. The first is ‘downstairs’ in the main cab – it’s a traditional campervan ‘rock ’n’ roll’ bed, and is easily made up with a few pulls of a lever. Upstairs is definitely the captain’s quarters, though. The bed inside the rising roof is larger than the one downstairs, sits on a slatted bed base and offers the best views out, courtesy of three zip-up windows. The next day, we headed away from the coast and into California’s twisting mountain roads, giving us a good opportunity to evaluate the VW on something other than a smooth freeway. Unsurprisingly, it’s no sports car, but once again it was the refinement that blew us away. Most third-party-built campervans creak, rattle and shiver over all but the smoothest surfaces. The California, built to VW’s exacting specifications in its own factory, is dead silent. Of course, UK buyers are more likely to spec one of the diesel engines, and we found ourselves wishing that our California was similarly equipped. Though the 2.0-litre TSI petrol is a great engine when fitted to a Golf GTI, it’s simply not 48 | CarDealerMag.co.uk

suited to lugging around two-plus tonnes of motorhome. It lacks low-end torque, forcing you to explore the rev range to make any meaningful progress. After a night in the California desert, we headed back to Los Angeles – at rush hour – to see how the vans coped in the cut-and-thrust of city traffic. Perhaps unsurprisingly, the excellent DSG auto and decent amount of power kept us ticking over nicely – and despite the big kitchen unit, visibility was still great. We waved goodbye to ‘our’ California with a pang of regret. Though it was of course pleasant in the 25-degree heat and endless sunshine of the Pacific coast, we’ve no doubt it would be equally at home on a muddy campsite in Cornwall with a saucepan of soup on the hob and a pack of beers in the fridge. Though a basic ‘Beach’ model can be had from around £46,000, the ‘Ocean’ – the true campervan – comes in at more than £56,000, and creative application of the spec sheet can see that rise over £60,000 and beyond. That could pay for quite a few family holidays. But if hotels, camping or caravanning don’t suit you and the freedom of a California does and you can afford it, then you won’t be disappointed.

Why do you think Hull is such a popular place to buy Californias? The location is very important as it’s a coastal area. It’s renowned for its campervan conversions, too – there is a well-known campervan converter in Hull. Also, our dealership is set up to be a far more retail environment than most CV dealerships. Very few people will buy a California without factory-ordering it, as they want it bespoke for them. It’s a very personal thing to customers, and the personal experience they get at Hull Vans is phenomenal. California customers are also a very close fraternity, because they have forums and they all put stuff on and talk to each other. A California customer will travel 120 miles to buy one from a dealer if they have a good reputation. You have a special area for Californias – is that something the rest of the network does? It’s exclusive to our dealership. I don’t think there’s another dealer in the VW franchise that has a dedicated space like we do. Is there a typical demographic who buys a California? It’s traditionally been pensioners – people who have retired from their businesses. We have quite a number of people buying Californias with their pension lump sums as they’re planning to go touring around. Saying that, I’ve also seen a huge number of young people buying Californias. Are there any particular specs that are popular? It’s so bespoke really. Customers love customising their own vehicles. It’s an emotional purchase for them, as they’ve dreamed of owning a California since they’ve been 19 or something – you know it’s an aspirational purchase. So when they come into the showroom they need to be treated like this is the best and biggest thing they’ve ever bought in their entire lives.

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CarDealerMag.co.uk | 49

Feature.

icture the scene: There’s a twotonne pick-up lodged in sand up to its axles, wheels spinning furiously while two people attempt to push it free. That was our welcome to Oman, the home of rocky valleys, dried-out riverbeds and – as we found – extremely large sand dunes. Volkswagen wanted to showcase just what its Amarok pick-up – now featuring an even more powerful diesel engine – could do on some seriously difficult terrain, and that is exactly what you can find in Oman. Day one would see us introduced to our trucks. Now, any pick-up looks good with plenty of offroad kit fitted to it, but this looked exceptional. A snorkel, raised suspension and chunky all-surface tyres had been fitted to make the big Volkswagen more capable on awkward surfaces. Our first route would take in mostly motorways before leading up away from the sea at Fins and into the mountains. If you thought the UK was a hotbed for speed cameras, you need to go to Oman. There’s a speed trap nearly every few miles on the motorway, and this means you’re always pretty cautious about how quickly you’re going. Driving out of Muscat was certainly a wake-up call, particularly considering the 50 | CarDealerMag.co.uk

Shimmering white sands and excellent hospitality – Jack certainly lived the high life in Oman! overnight flight we’d just alighted from, with horns blaring and Toyota Land Cruisers cutting us up at every turn. The route quickly spikes up, heading into the Hajar Mountains. On tarmac, the Amarok remains predictably well refined, but it’s on the loose gravel and dust of the mountain roads that it really shines. It manages to shimmy around and let you know that the surface is a little unstable, but it never feels out of control. As we arrived at the Salmah Plateau – our stopover point for the night – we were handed a pop-up tent, a sleeping bag and told to pick a rock-free spot on the ground. The surface was too hard to drive tent pegs into, so we ended up

weighing the tents down with large boulders. Rough and ready, that’s for sure, but it certainly reflected the ethos of the Amarok. And as the sun set on the nearby Jaylah Tower Tombs – brick structures dating back to the early Bronze Age – you really wouldn’t have wanted it any other way. Our next day’s driving would see us push further south into the country, heading towards the 1,000 Nights Camp in the middle of the desert. The route was fringed at many points by ‘wadis’. These dried-out river beds are large and wide, and created by frequent torrents gushing down the mountains after heavy rainfall. We stop briefly in the middle of one – the combination of ridged, deposited sand and little

Dealer view James Cubitt, head of business at JCT600’s Sheffield Volkswagen Van Centre

Volkswagen Amarok in Oman

How many commercial vehicles will you sell this year? This year’s target is 717.

Jack and his fellow Amarok drivers in Oman

by Jack Evans

The chunky VW can easily handle rough stuff

shade under the baking hot sun making us feel like we’re sitting on a griddle pan – as a guide tells us how many unsuspecting drivers leave their cars in the wadis and return after it’s rained to find them washed away. Needless to say, we hurry onwards shortly afterwards. After a quick halt at midday we mount up once more and head towards the desert. Stopping on the outskirts of the small town of Al Mintarib, we drop the air pressure in the tyres. Flatter tyres, after all, make for better traction on sand. As we head out of the town, the tarmac quickly drops away and gives way to sand – lots and lots of it. Now, I’ll happily admit that I haven’t driven on sand before. Snow? Yes. Gravel? Of course. Sand, however, proved to be a new challenge. Driving up the first incline, I got stuck. Wheels spinning, sending sand up into the air, there was little I could do to get moving. Thankfully, though, with a bit of pushing from some others in the group, I managed to get free. After a few more successful dunes, a steeper incline appeared. I’d learnt by now that the best option was to hit the deeper sections as hard as possible – speed is a bit of an ally when it comes to sand driving, apparently. Thankfully, the approach worked and the truck flew up the slope with little effort, although

a large bump that I felt in the middle was – according to those stood watching – a result of the truck taking off from the ground. Maybe a little too much speed then… At the top of the hill I leave the truck to have a look at the remaining Amaroks attempting the climb. Most make it to the top and move onwards, but some reach the summit and immediately get stuck. Many get properly beached, and it takes hours to move them out. By the time all the trucks are freed it’s dark. Thankfully, our overnight stopover is in the middle of the dunes. The 1,000 Nights Camp proves to be the ideal place to park up. The next day sees us rolling back to Muscat. The route takes in long, dusty trails that snake through the desert towards Al Mintarib. There, we reinflate the tyres and hit the tarmac. After driving on sand for so long, firm ground seems strange – you’re almost expecting it to shift around underneath you. Arriving at our final hotel, I say goodbye to ‘my’ Amarok. With hundreds of miles covered and many difficult conditions conquered, it was a hard farewell. However, the big Volkswagen more than proved its worth, and showed that despite being comfortable and refined, it can certainly take on the rough stuff. [CD]

How many Amaroks do you sell a year? We are currently on track to sell circa 85 Amaroks this year. Why do you think the Amarok is popular at your dealership? We have a range of products to see and test-drive plus a variety of accessories. Amarok has been a popular model for us and continues to be a strong selling opportunity. I feel the area lends itself to the 4x4 pick-up option given the adjacent Peak District, coupled with the benefits available to business users. We also see strong returns on our used product offering. Is there a certain demographic they appeal to? Are there any colours, specs or options that are particularly popular? We usually see people opting for the Highline 220bhp but with a variety of options. More often than not, this is also accompanied by additional styling options and appropriate rear load area covers to protect their goods or tools. We mostly appeal to business owners, or people who have land of some description to attend to. These are always, however, sold as a high-end business commodity, and in fairness are the default option when people want the best. With the new Mercedes X-Class now on the road, has this harmed sales at all? There have been people who have mentioned the X-Class, and I have personally driven one. However, currently, their equivalent top-ofthe-range engine isn’t on the roads. I don’t think they appeal to different people, but one significant differing factor is that the Amarok is all VW, whereas the X-Class is a cross-platform production between different manufacturers, which, as we have seen in the past, does deter some customers from buying the premium version. How has the Amarok strengthened the appeal of the VW CV range? No matter what the commercial needs are of a customer, we have a product to suit. Our VW CV range is the only range available on the market which is completely VW. Without the Amarok in the product line-up we would be missing a key model.

CarDealerMag.co.uk | 51

TO U G H CO LO U R Weâ&#x20AC;&#x2122;re broadening the spectrum for vehicle protection systems. Our new, improved formulation produces superior depth of colour and locks it in with first-class protection and exceptional durability. Put the shine back into your profits and discover how your dealership can benefit from increased penetration rates when you switch to LifeShine. For a free demonstration, call 01462 677 766 or email lifeshine@autoglym.com.

Carbon Shield TechnologyTM

52 | CarDealerMag.co.uk

Focus on. Autoglym

LifeShine – How Autoglym has made the best even better AUTOGLYM

E: lifeshine@autoglym.com T: 01462 677766

ifeShine from Autoglym, a revolutionary vehicle protection system (VPS), has exploded in popularity in recent years. It’s a proven, industry-leading product from a market heavyweight, and one which can provide an invaluable additional revenue stream to your business while also providing your customers with a tangible benefit. The need to provide adequate aftersales support to your customers while still maintaining all-important profit margins has long been a tricky balance to maintain, and this has only become tougher in the present, uncertain economic climate. It’s no coincidence that LifeShine has become increasingly popular as the decade has progressed, with thousands of dealerships turning to Autoglym’s class-leading VPS as a means of offering their customers extra value for money. Now, the best has just got even better. April saw the launch of new, improved LifeShine, which provides two significant points of difference to the overall offer. The formulation for paint protection has been improved, with a new, highly significant property finding its way into the mix – colour enhancement. This means that a single application doesn’t merely protect your customer’s paintwork, it will provide superior depth of colour, helping to return even used cars closer to their former, ‘as new’ brilliance. Tests carried out with four competitor products showed that the improved LifeShine product had a far superior depth of colour difference of up to 31 per cent. This will doubtless prove an invaluable tool in the cut-and-thrust world of used car sales, enabling dealerships to further add value while increasing penetration rates on pre-owned vehicles. The second benefit is a real game changer – and finally gives dealership sales staff a true ‘in’

for that most common of airborne contaminants – bird droppings. LifeShine’s guarantee has been enhanced to cover damage to vehicle paintwork caused by bird droppings – just another example of how Autoglym is listening to dealer personnel to give them the objection-handling benefits they need to close a sale. Two key features that were essential to preserve with the new product were speed of application and durability. The market-leading speed of application has been maintained, with the whole process taking just half an hour. Autoglym is only too aware of the relationship between cost, profit and time, and has developed LifeShine accordingly. This ensures that dealers can work through a large number of cars in a single day.

Further tests also revealed that product durability is unchanged with the new formula. Not only is it just as durable as the outgoing formulation, but it has far superior durability compared to competitors, forming a longlasting (500+ washes) barrier against a wide variety of common contaminants including UV rays, fallout and inclement weather. Independent testing verifies LifeShine’s effectiveness in this respect, with previous controlled durability tests confirming the ability of LifeShine Carbon Shield Technology to significantly outlast competitor systems. Commenting on the changes to Autoglym’s premier dealership product, Autoglym CEO Paul Caller said: ‘We’ve listened closely to both our trade customers and end-users to create what we firmly believe is a game-changer for the motor trade. It’s a product that’s easy to apply, works better than the competition and, best of all, offers profit to the dealer and value to the end user. ‘We’ve already seen huge interest in the trade from our previous LifeShine offerings, and this latest, all-new incarnation promises the best opportunity yet.’

To find out how LifeShine can benefit your business and for a free demonstration, call 01462 677766 or email lifeshine@autoglym.com CarDealerMag.co.uk | 53

Focus on. What Car ?

German giants continue to WHAT CAR?

W: haymarket.com/brands/what-car

hat Car? is the UK’s premier destination for in-market car buyers, receiving more than two million visits to its website every month. The title’s team of mystery shoppers has been busy once again this month, seeking out the best-selling cars of the past 30 days and revealing exactly what car buyers are in the market for. Latest research reveals that Fiat’s 1.2 Pop+ 5dr has topped the chart for the highest new car discounts, rising to a total of 27.3 per cent. Meanwhile, findings also show that discounts for the BMW i8 Auto have reduced by the greatest amount over the past four weeks, recording a decrease of 12.1 per cent. A go-to website for potential new car buyers, whatcar.com has recorded a significant surge in the number of customer searches converting to leads direct to both dealers and manufacturers. In particular, the Volkswagen Group – notably Seat – has enjoyed a huge increase in customer inquiries, prompted by What Car?’s new model reviews. According to What Car?, these leads are generated by more than 600 dealers now participating in the marketplace, and they collectively offer more than 100,000 new car deals. These figures lead us nicely into the most searched-for reviews, with Volkswagen and Audi continuing to top the chart. However, this month’s findings show that BMW, Ford and Mercedes-Benz have received a significant number of searches following new launches. BMW’s X2, Ford’s Focus and the Mercedes-Benz A-Class are all responsible for the three brands moving into the spotlight. BMW, Audi and Mercedes-Benz are leading the way in new car leases. Premium brands – predominantly the German marques – continue to dominate lease searches, with BMW moving ahead of Audi to lead the top 10. If we narrow down the figures, though, Volvo’s XC40 was the most popular vehicle to lease this month, ahead of Nissan’s Qashqai and the Volkswagen Tiguan. You’ll spot a trend here, with the top three cars falling into the SUV segment. What Car? says SUV lease deals have surged to a higher level than ever seen before on whatcar.com

Target Price Top 10 highest % new car discounts this month

1 Fiat Punto 1.2 Pop+ 5dr

27.3%

2 Seat Toledo 1.6 TDI 115 SE

23.7%

3 BMW 750i Auto

23.0%

4 Volvo S60 T4 [190] SE Nav [Leather]

22.9%

5 Mercedes-Benz SL 400 AMG Line 9G-Tronic

22.6%

6 Volvo V60 T4 [190] SE Nav [Leather]

21.0%

7 Seat Mii 1.0 Design 5dr

20.8%

8 Volkswagen Passat 1.6 TDI Bluemotion estate

19.8%

9 Ford Focus 1.0 EcoBoost 125 Titanium Navigation hatchback

19.6%

10 Volkswagen Golf SV range

19.3%

These are the largest discounts revealed by What Car?’s mystery shoppers over the past month, and typically highlight slow-selling and run-out models or, occasionally, models in which there is a fierce manufacturer-driven battle for market share.

Target Price Top 10 reductions in new car discount this month

1 BMW i8 Auto

-12.1%

2 Seat Ateca 1.0 TSI Ecomotive S

-7.8%

3 Fiat Tipo 1.4 Easy Plus hatchback

-7.8%

4 Fiat Panda 1.2 Pop

-7.7%

5 Alfa Romeo Mito 0.9 TB Twinair

-6.6%

6 Alfa Romeo Giulietta 1.6 JTDM-2 120 Tecnica

-5.8%

7 BMW M4 Convertible

-5.6%

8 Skoda Fabia 1.0 MPI S hatchback

-5.5%

9 Ford Kuga 1.5 EcoBoost 120 Zetec 2WD

-4.0%

10 Honda Civic 1.0 VTEC Turbo SE CVT

-3.4%

These are the discounts that have reduced by the greatest amount over the past month, as found by What Car?’s mystery shoppers. Quite often they represent a reduction in incentives on a heavily discounted model, but they can also signal increased demand for that car. 54 | CarDealerMag.co.uk

top the review charts Marketplace Insights Models and brands generating most leads via whatcar.com Model:

Brand:

1 Seat Ibiza

1 Seat

2 Volvo XC40

2 Volkswagen

3 Seat Arona

3 Audi

4 VW Golf

4 BMW

5 Seat Ateca

5 Volvo

6 Nissan Leaf

6 Skoda

7 Ford Fiesta

7 Nissan

8 VW T-Roc

8 Ford

9 Mazda CX-5

9 Mercedes-Benz

10 Skoda Fabia

10 Mazda

Most popular new car lease searches by brand on whatcar.com 1 BMW 2 Audi 3 Mercedes 4 Mini 5 Volkswagen 6 Land Rover 7 Volvo 8 Jaguar 9 Ford 10 Kia

Spanish brand Seat is enjoying huge popularity among What Car? readers. It is generating more sales leads than any other brand and has no fewer than three models in the top 10. The leader of the trio is the new Ibiza hatchback, with the Arona in third place and the larger Ateca crossover fifth. BMW is the most successful lead-generating marque behind those in the VW Group.

Premium brands continue to dominate the lease searches, although BMW has moved ahead of Audi with popular deals evenly spread among its range. In contrast, Audi’s popularity is focused on the A4 and Q5. Interest in Mini has also grown exponentially in the past 30 days.

Most searched-for reviews by brand Model While Volkswagen and Audi remain out in front, BMW, Ford and Mercedes-Benz have all shown notable surges in buyer searches this month following new launches. BMW’s charge is led by a positive review for the X2 (although traffic to the X1 review still eclipses it), Ford’s is a result of traffic to the Focus review, while interest in Mercedes-Benz is substantially boosted by the warm reception for the allnew A-Class.

UK Sales Ranking

Share%

1 Volkswagen 2

8.7%

2 Audi 3

7.8%

3 BMW 6

5.4%

4 Skoda 12

3.7%

5 Ford 1

12.0%

6 Seat 13

3.2%

7 Mercedes-Benz 4

7.1%

8 Nissan 7

4.4%

9 Volvo 18

2.3%

10 Hyundai 8

4.2%

11 Kia 9

4.1%

12 Vauxhall 5

6.7%

13 Peugeot 11

3.7%

14 Toyota 10

4.0%

15 Mazda 24

1.0%

16 Renault 15

2.7%

17 Suzuki 22

1.3%

18 Land Rover

3.0%

19 Honda 19

1.8%

20 Jaguar 20

1.4%

Top 10 most popular new car lease searches by model on whatcar.com 1 Volvo XC40 2 Nissan Qashqai 3 Volkswagen Tiguan 4 Volvo XC60 5 Volkswagen Golf 6 Audi A4 7 Audi Q5 8 Nissan Leaf 9 Volvo V40 10 Kia Sportage Interest in SUV lease deals has surged to a higher level than ever seen on whatcar.com, led by What Car?’s Car of the Year, the Volvo XC40. Keen deals on the Golf and A4 reflect imminent updates for both, while the V40 is especially keenly priced. CarDealerMag.co.uk | 55

Focus on. Click Dealer

Fix your leaky leads bucket with ClickEngage CLICK DEALER

E: cardealermag@clickdealer.co.uk

T: 01782 454354

ealerships now have more advertising platforms and inquiry channels than ever before, making it incredibly difficult to keep up with leads, especially when they’re coming in thick and fast, at all hours of the day. In today’s climate, it is crucial for dealers to ascertain how effectively their different advertising channels are performing, because there’s usually a direct correlation between how dealerships are managing their own inquiries and how well they’re converting. With almost 20 years of automotive retail experience and over 1,200 UK dealership customers, Click Dealer believes that by increasing the focus on inquiry management, dealerships can close more sales without investing more money in advertising, but by concentrating on improving their conversion rate. Consumers are no longer happy operating under the constraints of 9-5 retailing as they want to interact with businesses at any time of the day or night, even when they’re closed. This means that being first to respond is imperative, to give dealers the maximum chance of converting an inquiry into a sale, this is why Click Dealer has developed ClickEngage to be an automated inquiry response tool. ClickEngage enables customers to build their own deal, including part-ex valuations and add-on products, as well as providing multilender finance options with instant decisions. Consumers can even leave a reservation fee to secure their vehicle of choice before picking it up from a dealership. The revolutionary online retailing platform is set up to automatically reply to portal inquiries too and even integrates with Click Dealer website platforms. In some cases, we have seen dealership inquiries increase by as much as 59.4 per cent since going live on ClickEngage. Through ClickEngage, busy dealers can reply to leads directly at the point of inquiry by sending

‘It’s so efficient and we’re already reaping the benefits as a business.’ Richard Manning, managing director of Hilton Garage, Derby 56 | CarDealerMag.co.uk

a text and email out simultaneously, as soon as potential customers have shown an interest in a vehicle online. Both the SMS and email messages have the capability to push out finance options and add-on product deals 24 hours a day, seven days a week, so that consumers can get the full picture without having to call or visit a dealership directly. The automated inquiry answering process within ClickEngage also removes the possibility of human error and provides a smooth, seamless, first impression for dealerships who aren’t prepared to stand still. ClickEngage is a phenomenal tool for shoring up the inquiry process for dealers by taking care of their sales and lead management automatically. All leads from major advertising portals such as AutoTrader, CarGurus and Motors are set up to drop straight into ClickEngage, where they can be dealt with via the new and improved inquiry screen. Within ClickEngage’s fully integrated inquiry management software, dealers can create actions for their sales teams to call-back leads and even set the time and dates to make contact. The system is also ideal for writing notes about previous correspondence with prospects, compiling any complaints and setting any other

relevant customer reminders. Because of the allencompassing nature of ClickEngage, the inquiry management system can even be used to track people who have called, emailed or walked into the dealership to inquire about a vehicle. As soon as their details have been keyed in, dealers or sales staff can send a link out to give prospects a full breakdown of a vehicle, its key selling points, finance options and add-on products, for a slick, professional customer experience. Richard Manning, managing director of Hilton Garage, Derby, said of ClickEngage: ‘The level of integration available with ClickEngage means that the leads just drop straight into our DMS, it’s so much more efficient and we’re already reaping the benefits as a business.’ Gone are the days of writing down leads on sticky notes and in little black books. Managing customer data improperly could have serious financial repercussions for dealerships now GDPR is being enforced and ClickEngage can help to alleviate any worries, as well as accelerating dealers’ profits and saving them valuable time! For more information or to book a free demo of ClickEngage, get in touch with The Clickers today via cardealermag@clickdealer.co.uk or on 01782 454354. l

Click Dealer MD Gerry Moxham

CarDealerMag.co.uk | 57

WE’VE DRIVEN OVER 100,000 CAR BUYERS TO OUR DEALER PARTNERS’ WEBSITES If you're a car dealer looking for a competitive advantage Oodle Car Finance can funnel cost-effective traffic to your website.

To find out how we can help you drive more leads, more sales and help further the growth of your dealership, contact one of our Oodle Dealer advisers on: TELEPHONE: 01865 475 029 EMAIL: dealerenquiries@oodlefinance.com

Terms and Conditions apply. Becoming an Oodle dealer partner is subject to successful completion of Oodle’s dealer partner onboarding process. Oodle Car Finance is the trading name of Oodle Financial Services Limited which is a company registered in England and Wales with registered number 07277272. Our registered office is One Callaghan Square, Cardiff CF10 5BT. We are authorised and regulated by the Financial Conduct Authority under Reference Number 702459.

This communication and its contents are intended for business users only. 58 | CarDealerMag.co.uk

Focus on. Oodle Car Finance

Car-buying journey is changing – how should dealers respond? OODLE CAR FINANCE

W: oodlecarfinance.com/dealers/

he car-buying journey is changing. Increasingly, consumers are researching their next vehicle purchase online, across all devices with little or no contact with a dealer. According to recent research, almost a quarter of consumers go through the entire car-buying journey on their mobile, before making the final purchase in a dealership. More than 80 per cent of consumers are using their smartphones to research their next vehicle, while nine per cent go on to buy a car via their mobile. Furthermore, 23 per cent of consumers said they are likely to buy their next car entirely online. Clearly, the traditional car-buying journey is being flipped on its head, with just half of consumers visiting a dealership as part of their research process, while another 50 per cent rely on general motoring websites and just 14 per cent use magazines and newspapers (source: WEVE Primary Automotive Research 2017). The shift towards digital and the ‘iPhoneification’ of the industry is changing consumer buying habits and attitudes towards car ownership and a host of smart start-ups, like Oodle Car Finance, are shaping up to take advantage. The Oxford-based fintech is using technology to bring finance and car search closer together, in order to create seamless user journeys that in the not-too-distant future could result in an Amazon-style buying experience that many consumers are now used to. Recent figures from enquiryMAX show that finance has driven a 14 per cent rise in the number of people buying on their first visit to a dealer, and it is here that Oodle is building systems to facilitate the best possible outcomes for both customers and dealers alike: car sales. As things stand, many car buyers are securing finance, matched with a vehicle of their choice on a single website – often without coming into contact with a dealership, until they pick up the

vehicle. Increasingly, this comes after consumers have shopped around online to find the best ‘pay to drive’ deal for them. If a dealer can’t supply a car with the right finance quickly, they will find that they have lost the customer to a competitor. The industry is ripe for innovation and it’s coming. A more seamless purchasing experience is being brought to market and new technologies are allowing businesses like Oodle to play a more proactive and positive role in consumer journeys – before, during and after they have left the forecourt. Jonny Clayton, CEO of Oodle Car Finance, commented: ‘Customer retail experiences and expectations are being set by the likes of Amazon

and Apple and dealers need to embrace this. ‘It’s all about having the right digital tools in place and these can be secured by working with progressive, technology-led partners who can bring dealers and customers closer together. ‘By partnering with a modern, tech-informed lender like Oodle, car dealers can boost car finance applications and approvals to secure them valuable income, as well as supporting them in the creation of the best possible customer experience. ‘We can help dealers get closer to customers for a more seamless and effective experience, working towards a trusted ‘‘1-click’’ purchase. ‘If dealers can deliver this, they will have a winning formula.’

‘By partnering with a modern, tech-informed lender like Oodle, car dealers can boost car finance applications and approvals.’ Jonny Clayton, CEO of Oodle Car Finance CarDealerMag.co.uk | 59

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

Protecting yourself from PCP problems Q A

Is Lawgistics concerned about potential PCP mis-selling claims in the future? We think it is highly likely that the motor industry will be tackled over their advertising of PCP as a form of finance. PCP or Personal Contract Purchase has many benefits for the right user but there are downsides too. The question will be whether those downsides were made sufficiently clear to the user before they entered into the contract. There is, in UK law, a principle that the more onerous a contractual obligation is, the greater the effort that has to be made to draw it to the attention of the other party. Simply putting such terms into a plethora of other terms and conditions will not be sufficient. Coupled with rules set out by the Advertising Standards Authority and criminal laws against the misleading omission of important pre-contract information, it means that those who advertise PCP must do so openly, clearly and prominently. Of course, they must also advertise in accordance with specific laws for credit

JOIN CAR DEALER CLUB AND GET ALL THESE BENEFITS WORTH £1,000s FOR JUST £49.99 60 | CarDealerMag.co.uk

advertising (and we see lots of non-compliance!). Alleged mis-selling could arise when, for example, manufacturers set their annual mileage allowance at just 5,000 to 6,000 miles per year and apply a 9p-per-mile excess – which will see the ‘average’ consumer who does 12,000 miles per year having to pay more than £2,000 extra at the end of the deal if their contract is for 48 months. That will come as a huge shock to consumers who could go on to make out that this ‘penalty’ risk was not made clear at the outset. Advertisements and pre-contract information ought to spell this out clearly as otherwise a claim for mis-selling could well succeed.

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.

Additionally, when consumers realise that they could have to find a large ‘over-mileage’ payment at the end of the agreement, some will (as we have already seen) take steps to ‘clock’ the car back to a mileage that allows them to escape it. Dealers should, at the end of any PCP contract, carefully check all servicing documents and any MOTs for mileage discrepancies and even go so far as to interrogate the car’s ECU to ensure that the mileage has not been tampered with. Advertisers should (amongst other things) also ensure that their websites do not automatically default to business prices that do not include VAT – as it will certainly annoy prospective private users who will have to pay more than what they see on the screen. Those who provide PCP must take steps to ensure clear and prominent transparency in relation to the terms and conditions and retain proof of same in order to withstand the anticipated rush of alleged mis-selling claims when large numbers of PCP contracts come to their end.

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

Exclusive five per cent discount on your tailormade trade insurance 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.

Do I require a TV licence?

We have a TV in our customer waiting area. Recently, we had a letter stating we will be in breach of copyright law unless we buy a licence for films. Is that true? The Copyright, Designs and Patents Act 1988 has recently been amended in this respect. Films shown to the public on commercial premises without a charge for admission (customer waiting rooms for example) were previously exempt and did not infringe copyright. Films have been removed from this exemption, but broadcasts are still exempt. Films do not mean just movies but cover any recording of moving images, with or without sound. This means that if the choice of channels is limited to free overthe-air news and commentary programmes, you may still benefit from the exemption without the need for a separate licence covering films. You would need to clarify your position with the TV channels you are intending to show to your customers as their stances are likely to vary and even news programmes may include films.

WHY I LOVE LAWGISTICS

WANT TO UPGRADE?

I carried out the £1,750 of work I was asked to do – but my buyer went off the radar

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.

WHEN a customer pays a deposit to have thousands of pounds of extra work done on a car they’ve just bought from you, it would be reasonable to expect them to go through with the deal. Unfortunately, Vince Garvin, of Ultimate Jaguar, nearly ended up £1,750 out of pocket after a customer pulled out of just such an arrangement. Garvin, owner of the Leighton Buzzard dealer which specialises in the sale of modern and modern classic Jaguars up to £25,000, told us about a customer who ‘wouldn’t talk to me’. The client in question was buying a Daimler for £12,915, but wanted to pay to have £1,750 worth of work done to Waxoyl the car and have timing belts and chains replaced. ‘We had a conversation about it and I said I’d get that done and he gave me a £500 deposit and would pay the rest on collection. ‘The collection

date came and went and he then went quiet on me and wouldn’t answer any calls. I got in touch with Lawgistics and said that I’d had the work done on the strength of him wanting the work and paying for it. ‘Lawgistics said he was in breach of contract for the work, and also for buying the car. ‘The firm took it all over and they dealt with his solicitors, and in the end I got my money back.’ Garvin admitted he was sceptical about Lawgistics’ service initially, preferring to deal with problems himself and always being aware of keeping overheads low. ‘But as soon as I signed up, I saved money. The few cases I have had would have cost me a lot more to deal with than what I pay to Lawgistics each month.’ Finally, he added: ‘It’s great value, it takes worry, stress and headaches away from me and Lawgistics always listens to my problems. It’s a great service.’

EASY STEPS TO JOIN 1. GO TO CARDEALERCLUB.COM 2. HIT SUBSCRIBE

Discount on software and free health check app from Dragon2000

Get 10 per cent off App Creatives’ development costs for your exclusive app

Book an appointment with Paragon Car Finance and get £50*

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.

Want to create your own mobile app but don’t know where to start? Then work with the app development company that has created Car Dealer Magazine’s successful apps. App Creatives is behind the highly esteemed Car Dealer iPhone and iPad apps. It’s an expert in app design and development, and the good news for Car Dealer Club members is that they get an exclusive 10 per cent discount on App Creatives’ services, including creating an app that’s perfectly tailored to your requirements by the firm’s experts.

At Paragon Car Finance, we’re so confident we can better the deals and improve the service other lenders offer that we want to give £50* to all eligible Car Dealer Club members who book an appointment with us to see how Paragon Car Finance could help you and your customers get a better deal. Book your £50* appointment now by calling us on 0345 149 7777.

3. FILL OUT YOUR PAYMENT DETAILS ON PAYPAL AND HIT SUBMIT 4. WAIT FOR YOUR CAR DEALER CLUB PACK TO ARRIVE IN THE POST OR PHONE 023 9252 2434 AND SPEAK TO ONE OF THE CAR DEALER TEAM

* Terms, conditions and eligibility rules apply. Visit cardealerclub.com/#benefits for more details.

Dragon2000 CarDealerMag.co.uk | 61

Data file.

Thestatistics

| SMMT SALES DATA | TAKING STOCK |

SMMT sales data April/year to date

A SALES INCREASE!

New car market rises 10.4 per cent in April – but it’s a mixed picture T

he UK new car market grew 10.4 per cent in April, with 167,911 new units registered, according to figures from the Society of Motor Manufacturers and Traders (SMMT). Demand was affected by a number of factors, including the timing of Easter, which meant additional selling time this April, and March’s adverse weather, which pushed some deliveries into the fourth month of the year. Most significant, however, were the VED changes that came into force last April, causing a pull forward into March 2017 and a subsequent depressed April market. April figures this year paint a mixed picture, with private demand growing 26.3 per cent, while the fleet market remained stable. However, business registrations saw a big decline, falling 12.9 per cent compared with the same month last year. Demand for supermini and dualpurpose cars saw the most significant growth of all segments, up 27.0 per cent and 26.8 per cent respectively. Demand for petrol cars grew in April, up 38.5 per cent, while diesel registrations continued the recent

Welcome news: Ian Gilmartin trend, declining by 24.9 per cent. Meanwhile, registrations of plug-in and hybrid electric cars continued to rise, up 49.3 per cent. While the growth is welcome, these alternatively-fuelled vehicles still account for just 5.6 per cent of the market. Despite the significant rise in the month, the overall new car market remains down in the year to date, with new registrations in the first four months falling 8.8 per cent YOY. While this level of decline is expected to slow over the course of 2018, political and economic uncertainty will continue to affect the market and further instability

could cause additional disruption. Mike Hawes, SMMT chief executive, said: ‘While the continuing growth in demand for plug-in and hybrid cars is positive news, the market share of these vehicles remains low and will do little to offset damaging declines elsewhere. Consumers need certainty about future policies towards different fuel types, including diesel, and a compelling package of incentives to deliver long-term confidence in the newest technologies.’ Ian Gilmartin, head of retail and wholesale at Barclays Corporate Banking, said: ‘The uptick in new car sales will be welcome news for many sellers, but we can’t have it both ways – just as we partly attributed last month’s poor result to an unfair comparison to an unusually strong March 2017 ahead of the tax changes, similarly April 2017 was relatively weaker after the VED increase came into force, which flatters this year’s numbers. ‘With the exception of last year, it is still the weakest April since 2013 but after a full year of declines, the industry will cheer a sales increase in whatever way it’s achieved.’

Top

Most-improved manufacturers in April

McLaren +511% MG

+278%

Abarth +68% VW +46% Citroen +44%

Bottom

Worst-performing manufacturers in April

Chevrolet -76% Smart

-48%

SsangYong -46% Infiniti

-38%

BMW -19%

‘Ill-informed messages mean people are nervous about car buying’ APRIL’S results do not mark a recovery in the new car market, according to Andrew Hooks, chief operating officer of Carwow. He said: ‘The car industry – and the consumer – need clarity of strategy from the government, including a practical and actionable plan to manage the long-term transition from fossil fuel to alternatives over the next 20 years. ‘This plan must include petrol and diesel at its 62 | CarDealerMag.co.uk

core while we wait for the strategy to deliver the advances in infrastructure and technology needed to make alternatives a plausible reality for the majority of car drivers. Without this, consumers still lack the confidence to buy, because they are inundated with ill-informed messages casting all diesels as bad. ‘Meanwhile, those looking to go green lack the reassurance that the UK is set up for an

electric future, with the relative lack of publicly available charging points and vague promises of investment in the electric infrastructure. ‘The industry continues to seek new ways to engage the car-buying public and it’s significant that online leads are growing year-on-year. ‘Dealers are working hard to get in front of potential customers however they are choosing to browse and buy their new car.’

Jaguar

Smart

+39% April 2018 Marque

2018

April 2017

% market share

Abarth

358

Alfa Romeo Aston Martin

-48%

2017

Year-to-date (YTD)

% market share

% change

2018

0.16

0.17

14.72

1,762

0.20

1,984

0.20

-11.19

0.05

24.68

443

0.05

722

0.07

-38.64

8.61

0.31

61,050

6.89

60,874

6.26

0.29

0.07

2.88

517

0.06

685

0.07

-24.53

7.42

-19.50

56,471

6.37

60,758

6.25

-7.06

0.01

-76.92

0.00

-35.48

1.83

44.28

18,695

2.11

21,136

2.17

-11.55

0.92

37.37

9,101

1.03

9,603

0.99

-5.23

27.16

2,637

0.30

3,627

0.37

-27.30

9.34

13,710

1.55

19,558

2.01

-29.90

24.29

102,071

11.52

120,707

12.42

-15.44

21,226

2.39

20,787

2.14

2.11

34,991

3.95

34,814

3.58

0.51

0.04

1,403

0.14

-72.56

1.37

14,866

1.53

-18.45 -29.46

0.18

265

0.06

13,135

7.82

13,094

107

0.06

104

9,078

5.41

11,277

0.00

4,024

2.40

2,789

1,919

1.14

1,397

529

0.32

416

0.27

Fiat

2,166

1.29

1,981

1.30

Ford

20,114

11.98

16,183

10.64

Honda

3,089

1.84

3,016

1.98

2.42

Hyundai

6,987

4.16

6,958

4.58

0.42

Infiniti

0.04

118

0.08

-38.98

385

Jaguar

2,414

1.44

1,732

1.14

39.38

12,123

Citroen Dacia

24.50

1,514

Chevrolet

% change

0.21

304

BMW

% market share

1,885

213

Bentley

2017

68.08

0.21

Audi

% market share

0.14

477

0.28

364

0.24

31.04

2,205

0.25

3,126

0.32

Kia

6,872

4.09

6,291

4.14

9.24

35,623

4.02

35,996

3.70

-1.04

Land Rover

5,027

2.99

4,116

2.71

22.13

28,842

3.25

33,855

3.48

-14.81

678

0.40

672

0.44

0.89

4,751

0.54

4,566

0.47

4.05

Jeep

Lexus Lotus Maserati Mazda

0.02

10.34

0.01

117

0.01

-21.37

103

0.06

109

0.07

-5.50

539

0.06

749

0.08

-28.04

1,673

1.00

1,690

1.11

-1.01

15,845

1.79

16,859

1.73

-6.01 83.56

0.03

0.01

511.11

268

0.03

146

0.02

11,854

7.06

13,345

8.78

-11.17

63,027

7.11

68,182

7.01

-7.56

829

0.49

219

0.14

278.54

2,604

0.29

1,284

0.13

102.80

Mini

3,846

2.29

3,734

2.46

3.00

20,855

2.35

21,001

2.16

-0.70

McLaren Mercedes-Benz

1,189

0.71

1,309

0.86

-9.17

7,186

0.81

6,413

0.66

12.05

Nissan

7,448

4.44

8,041

5.29

-7.37

42,242

4.77

61,391

6.32

-31.19

Peugeot

6,225

3.71

5,405

3.55

15.17

30,868

3.48

33,798

3.48

-8.67

Porsche

1,646

0.98

1,240

0.82

32.74

5,720

0.65

4,977

0.51

14.93

Renault

Mitsubishi

4,462

2.66

4,074

2.68

9.52

24,066

2.72

29,200

3.00

-17.58

Seat

5,315

3.17

3,926

2.58

35.38

23,705

2.67

20,708

2.13

14.47

Skoda

6,216

3.70

6,011

3.95

3.41

27,827

3.14

28,333

2.91

-1.79

Smart

495

0.29

965

0.63

-48.70

2,562

0.29

4,182

0.43

-38.74

151

0.09

282

0.19

-46.45

1,016

0.11

1,641

0.17

-38.09

Subaru

153

0.09

123

0.08

24.39

1,131

0.13

1,055

0.11

7.20

Suzuki

2,121

1.26

1,658

1.09

27.93

13,444

1.52

15,609

1.61

-13.87

Toyota

6,713

4.00

5,113

3.36

31.29

39,928

4.50

40,152

4.13

-0.56

Vauxhall

11,214

6.68

10,732

7.06

4.49

65,749

7.42

77,465

7.97

-15.12

14,607

8.70

9,954

6.55

46.75

72,065

8.13

69,732

7.17

3.35

3,782

2.25

2,735

1.80

38.28

15,439

1.74

16,317

1.68

-5.38

SsangYong

Volkswagen Volvo Other British Other Imports Total

0.04

0.05

4.29

235

0.03

245

0.03

-4.08

260

0.15

227

0.15

14.54

1,479

0.17

1,924

0.20

-23.13

167,911

100

152,076

100

10.41

886,400

100

972,092

100

-8.82

Figures supplied by SMMT

CarDealerMag.co.uk | 63

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Market Insight.

...in association with ASE-global.com

Vauxhall made a significant announcement about its dealer network in April

Positive April as market reacts well to March new-reg figures Most dealer group shares have moved back towards their starting positions for the year, says Mike Jones

here was finally some good news amongst the UK motor retail stocks as the market reacted favourably to the announcement of the March registration statistics. Given the negative movement in the registration numbers, it is more a case of the bad news not being as bad as feared rather than the news being good, but it is to be welcomed, nonetheless. It can be seen from the share price performance table that this movement, significant for some, was enough to put the majority of businesses back within touching distance of their positions at the start of the year. Given the challenges we have seen in the sector it will be interesting to see whether investors are picking this as the bottom of the cycle and foreseeing a sustained improvement in performance in the future, or whether this turns out to be just a blip. Share price performance While it is certainly too soon to celebrate the gains made, it is interesting to see that the majority of shares have now moved back towards their starting positions for the year. The motor

Share price movement since the start of 2018

Share price movement over the last month

Pendragon

1.8%

25.0%

Vertu

-1.0%

14.7%

Lookers

-1.7%

16.1%

Inchcape

-7.2%

5.1%

Cambria

2.5%

-0.8%

Caffyns

2.4%

Marshall

-1.5%

1.5%

retail average outperformed the FTSE 100 for both the month of March and the current year to date. Many of the listed businesses continued to return value to shareholders by way of share buybacks during the month of April. Financial performance There was a pause in announcements during the month of April. However, we will see a raft of results statements during the month of May.

In the wake of the Vauxhall announcement that they had terminated their network, Lookers announced that they were closing two Vauxhall sites. Given the exposure of many of the listed companies to Vauxhall, I would expect to see the matter addressed during many of the earnings announcements in May. Considering the profile of the sites which tend to be operated by the plcâ&#x20AC;&#x2122;s (large sites in major territories), the number of closures should be less than the national average of circa one third. However, it will be interesting to see the extent to which the matter is addressed, or ignored! Transaction activity The listed plcâ&#x20AC;&#x2122;s did not announce any business transactions during the month of April. However, I expect several to be completed in the imminent future. On the selling side, Pendragon have publicly stated that they are working towards the disposal of several premium outlets. There may be further group strategic disposals by Inchcape and some of the other listed groups are currently actively working on acquisitions.

Mike Jones is chairman of dealer profitability specialist ASE plc. You can read his column here every month. CarDealerMag.co.uk | 65

Auctions.

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or the first time on record, BCA has sold a million vehicles in the UK in a 12-month period. The record fell during a recent 1,000-vehicle BMW mega-sale at the auction firm’s Perry Barr remarketing centre. The one millionth vehicle was a 16-plate Mini John Cooper Works 2.0 230 sold by the BMW Group that realised £19,100. The mega-sale itself was a huge success, offering and selling 1,028 vehicles both inlane and online for the BMW Group for a 100 per cent conversion and more than £11 million in sale proceeds. Stewart Hodges, BMW Group’s remarketing operations manager, said: ‘We are delighted that the one millionth vehicle sold by BCA over the past year is a BMW Group vehicle. ‘We have a longstanding and very successful remarketing partnership with BCA and this exceptional result underlines the support for the BMW/Mini brand from BCA’s buyers. Every aspect of the sale was well-planned and executed, and the team at BCA Perry Barr pulled out all the stops to ensure our vehicles were prepared and

S presented to the very highest standards.’ Of the one million vehicles sold by BCA over the past year, more than 900,000 were cars with the balance represented by light commercial vehicles, motorcycles, caravans & motorhomes, taxis, minibuses and small volumes of trucks, trailers, plant and agricultural equipment. BCA’s chief commercial officer, Craig Purvey, said: ‘Not only have we delivered a record-breaking volume performance over the past financial year, but we continue to make significant progress enhancing the customer experience at BCA. ‘We have put the customer at the heart of our business, continually improving customer services and bringing new solutions to the market.’

New contract for Shropshire auction site ASTON Barclay Prees Heath has been rewarded with a three-year remarketing contract from Santander Consumer Finance after achieving 100 per cent conversion rates on all stock entered into the Shropshire auction during 2018. Santander will continue to use the Prees Wednesday fleet sale as a monthly benchmark to gauge prices and market demand for its used stock which includes voluntary terminations, repossessions and Car dealer new strip ad Revised ex-PCP and PCH cars. Stock volumes will

increase during the time of the contract as Santander’s motor finance and personal leasing business levels continue to grow. Shaun Deacon, head of arrears management at Santander Consumer Finance, said: ‘Our monthly sale programme at Prees has gone exceptionally well. Prees has achieved a 100 per cent conversion on our stock and the customer service levels we have received buyer interest 4/4/18and12:01 Pagein1our used cars has been first-class.’

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ourcing good-quality used stock for retail was once considered an art. These days, with the advent of mobile technology, it is more of a science. And with BCA selling a million vehicles in the UK over the last year, the importance for customers to be able to filter and process all this choice of stock becomes immediately apparent. As the used vehicle sector provides the very best profit opportunities for dealers, it becomes increasingly important to source used stock efficiently. Our customers tell us they need easy access to live information about vehicles and the running order on their mobile devices, so they never miss an opportunity to bid on the cars they need. BCA is developing a new mobile Buyer App following a period of extensive research and prototyping with more than 1,000 of our customers, both online and face-to-face. The BCA Buyer App gives buyers the tools they need to do their job more efficiently, improving both the physical and digital buying journey. Alongside the development of the Buyer App, BCA’s buyer support function is being developed to support the multiple touch points that customers have across BCA’s remarketing network. Our customers have diverse needs and creating a more personalised service is a priority as we look to enhance the experience across all channels including physical auction, Live Online, Bid Now/Buy Now and eAuctions. The initial offerings within the BCA Buyer App will provide tools for both physical and digital customers to make the buying process easier. We are using Agile Product Development methods that allow us to refine and enhance our digital tools quickly and incorporate the changes our customers suggest. We will continue to improve and enhance the app based on customer feedback to ensure it delivers the ongoing convenience and functionality that they require.

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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

More records are tumbling as buyer demand remains strong Inventory, attendance and bidding activity are all at increased levels as we head into the summer, says Stuart Pearson, chief operating officer of BCA’s UK remarketing operation.

emand from buyers is driving rising used car values at BCA, as April saw more records tumble. Fleet and lease values rose to £11,137, the highest point on record, while dealer part-exchange prices increased sharply to reach £5,000 for the first time. Values also increased for nearly-new vehicles, although model mix has a significant influence in this low-volume sector. Despite this, the headline average value declined to £9,584 – a fall of £84 (0.8 per cent) caused by a changing model mix as dealer volumes increased. Year-on-year, average values are up by £494 – a 5.4 per cent rise. Buyer demand was high and conversion rates stayed strong in April, despite the diversions of the Easter holidays and some unseasonably poor

weather. Professional buyers remain very active, reflecting the strong retail demand that has been widely reported. While demand traditionally softens into the summer months, we are continuing to see inventory, attendance and bidding activity at increased levels and therefore we anticipate that average values will remain stable, driven by the high quality of stock that we offer. As we’ve mentioned, fleet and lease stock posted a new record value of £11,137 in April as buyer demand continued. Average values improved marginally over the month by just £15, with retained value against original MRP (manufacturer’s retail price) falling slightly to

Average value of used car in fleet & lease sector :

£11,137

44.08 per cent. Year-on-year values were up by £664 (6.3 per cent), with age and mileage declining. Average dealer part-exchange values continued to rise, reaching £5,000 for the first time on record as values increased by £105 (2.1 per cent) over the month. Year-onyear values were ahead by £324, representing a substantial 6.9 per cent uplift with age static and mileage rising. Values for nearly-new vehicles improved to £19,170 – a rise of £301 (1.5 per cent) compared with March and up by £1,142 (6.3 per cent) year-on-year. Model mix has a significant effect in this very low-volume sector, with brandspecific winners and losers.

Average dealer part-exchange values:

£5,000

CarDealerMag.co.uk | 69

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The mid-engined Vauxhall that ripped up the brand’s rulebook Adam Weller reports on a car that could prove a good investment in future but which is also capable of delivering track day thrills.

auxhall has always been about producing everyday cars. Although some spiced-up performance versions of its hatches have seen the light of day over the years, the endgame almost always involves high levels of practicality and low price points. All that changed in 2001, however, when the first Vauxhall VX220 – or perhaps, the first Opel Speedster, or Daewoo Speedster – left Lotus’s production line in Hethel. The VX220 was developed and built by Lotus on the same chassis as the then-new Elise S2. To say that a mid-engined sports car was a departure for Vauxhall is an understatement, but thanks to the collaboration with Lotus, it was certainly one of Vauxhall’s most capable performance vehicles of all time. All the handling characteristics you’d expect from an Elise are present in the VX220, albeit matched with a 147bhp 2.2-litre engine sourced from an Astra. While more powerful Elises came in the following years, the VX220 did seem like a slightly stronger proposition. The 2.2-litre engine produced more torque and power than the Rover 1.8 found in the early S2 Elises, and, overall, the VX220 seems to be slightly more comfortable. The spec in the VX220 is also better, with the addition of ABS and an airbag, both of which were absent in the early S2 Elises. It would be easy to read ‘added safety features’ and ‘slightly more comfortable’, and make the assumption that the VX220 is an Elise that’s been stripped of its edge. However, this is not the case. The car is still supremely light at just 875kg, and thanks to the superior torque of the Vauxhall motor, is extremely capable, but in a different way from the high-revving Elise. Of course,

The VX220 is one of Vauxhall’s most capable performance vehicles of all time being a fairly common Vauxhall engine, the servicing and maintenance costs of the VX220 are lower than those of the Elise, too. Picking between a VX220 and an Elise is ultimately a matter of preference. Getting in and out of a VX220 isn’t really any easier than is the case with an Elise, and they are still pretty uncompromising compared to your average Porsche 911, for instance. However, since it is an iota more sensible while retaining the Elise’s handling, the VX220 would be our choice. Here at Baize Group HQ, we see a VX220 fairly regularly, since our managing director Andy Entwistle owns one. Since Andy is lucky enough to have one of these fabulous cars, we asked him what he liked most about it. He said: ‘They drive like a go-kart or a racing car, and although they are light and made using a glass fibre body, they feel very well planted on the road.’ However, if you are looking at moving to a VX220 from something rather more ‘sedate’, Andy makes it clear that you need to think twice. ‘It’s a bit too extreme for the Porsche brigade,’ he told us. ‘However, if you want something that you can

have some fun with, take on the odd track day, and actually enjoy driving without having to break the speed limit, there is very little that can touch these for the price! ‘Plus, this is still a car that can be modified and personalised by the owner, unlike most cars these days. They’re easy to work on and play with, which is a big part of their appeal to me.’ The VX220 is also rarer than the Elise, which could be another reason to choose this car over its sibling if you like to stand out from the crowd. The car pictured on this page is an 03-plate example, with 52,469 miles on the clock. For sale at Parkway Motor Group, Edwinstowe, Nottinghamshire, it has a full service history and has been exclusively seen by a Vauxhall main dealer throughout its life, which has seen it owned by just two previous people. It is on the market for £11,450, which is towards the bottom of the price range for the VX220. In theory, this car still has some appreciating to do over the next decade, and could be a fairly good investment. However, if we were buying one of these cars, we’d be tempted to follow the advice of our resident VX220 owner Andy Entwistle, and properly experience the cars’ sublime handling at track days, rather than store it safely away.

This car could prove to be a good investment CarDealerMag.co.uk | 71

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Jardine needs staff for pair of new dealerships

J David delighted to join board INDUSTRY leader David Hammond is the latest automotive expert to join Cazana.com. Hammond, who has joined as chairman in a non-executive capacity, has previously been involved at very senior levels with automotive businesses such as Camden Corporate Fleet Services, Car Shops, Allen Ford and Crystal Motor Group. He is currently CEO of Camden Ventures. He said: ‘Cazana’s unique business model is one that is going to bring both value and enabling technology to the motor industry. I’m delighted to be joining the board.’ Cazana CEO Tom Wood said: ‘We are thrilled to have David join us as chairman. ‘He’s well respected in the automotive industry and his endorsement will go a long way to add to our credibility.’

ardine Motors Group has started a recruitment drive to find new employees to work in its two new sites in Slough. A multi-million pound investment into the pair of new state-of-the-art dealerships in the Berkshire town – one for Jaguar and one for Land Rover – means the dealer group is now looking for prospective staff ‘who can bring something new to the business and deliver the exceptional customer service for which the group is renowned’. The recruitment drive is part of Jardine’s ambition to grow in the region and recruit people to take on positions in a variety of departments, including customer service, sales and support. The group also has several vacancies for technicians. Clare Martin, HR director at Jardine Motors Group, said: ‘It’s an exciting time to enter the automotive industry, which is why we are investing in our teams in Slough. We need people who take pride in their work, have ambitions to

be the best and want to deliver an exceptional customer experience. ‘In return, we offer a fulfilling career with a healthy work-life balance, with flexible working, 33 days’ annual leave for all, industry-leading pay and benefit packages, excellent career progression and innovative employee offers. We retain and develop our staff, and take pride in seeing that 93 per cent of our workforce “enjoy their job”. ‘With the exception of technicians, we do not require prior experience in the automotive industry; in fact, as we grow, and prepare for cars with new technology, we are bringing in more people from other industries to work for us. As an example, last month, 52 per cent of our new recruits were from outside of our industry. All we ask is for passionate individuals who want to provide our customers with outstanding service. ‘I would encourage any bright and enthusiastic individuals who want to embark on a rewarding career to consider the opportunities that are available in motor retail and get in touch now.’

CarDealerMag.co.uk | 73

Data file.

James Litton

TRADER TALES

What can we all learn from the demise of Toys R Us?

here’s a magical place, we’re on our way there, with toys in their millions, all under one roof. It’s called Toys R Us... As jingles go, this has to be one of the finest ever written. Sadly though, it appears we will never hear the ditty again, as attempts to find a buyer for the once mighty retail giant have failed, and the stores are being closed. Times change, and having visited a store in December to buy my son’s Christmas present, it was not hard to see where the company had gone wrong. The building was dilapidated, service non-existent (both literally and metaphorically) and the format had not changed since my own childhood. Retail in the future has three fundamental components: scale, niche, experience. It is fine to have just one of these elements in play, but if your business can objectively be described as having none of the above, then you really need to think about the future. For example, Toys R Us already had great, large retail locations. What they should have done is look to the growth in soft play centres. I would also have created experiential areas for kids to play with toys in themed zones. But that is just me. I work in motor retail, not in toy retail. Our industry is discussed frequently in the business press as having a very different future, with a recent KPMG forecast citing a potential 50 per cent reduction in bricks-and-mortar car retailers by 2025. So what lessons can we learn? Although the brand I work with, Volvo, has a market share of less than two per cent, its electrification strategy gives the brand a niche edge. As a retailer, we have recently moved into one of the biggest sites in the country, so we now have greater scale to compete. Many industry correspondents have reacted to the KPMG report as unlikely, but if you think objectively for a moment, not only are retailers under threat, many manufacturers have difficult decisions to make about their presence in the UK. Brands with a share of less than one per cent, such as Subaru, SsangYong, Jeep, Mitsubishi, Abarth, MG, Alfa Romeo (and all the supercar brands) really have to be confident that their offer is niche and sustainable. For me, the real casualties could be Seat, Fiat and Citroen. The market is simply too crowded. In an ever-changing digital world, manufacturers and retailers need to differentiate themselves in a way which is both innovative and relatable. The good news is that it is not too late. I agree with many commentators that it is not all doom and gloom, but we need to act now. The business graveyard is full of casualties just hoping things will get better. Just ask Geoffrey the giraffe…

‘It was not hard to see where the company had gone wrong.’

James Litton is general manager – director of Volvo Cars Poole. He always has something to say about the industry he loves. 74 | CarDealerMag.co.uk

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I did feel a bit mean about misleading a time-waster

’m sure any dealer who’s been in the industry long enough will have had to deal with the infamous anorak. I’m talking about the chap (I use a genderspecific term because, let’s be honest, it’s always a bloke) who strides confidently into the showroom on a Saturday afternoon and spends about half an hour poking around the cars without any intention of actually buying one. This menace rears his ugly head in every dealership, regardless of what brand they sell, but I dare say from personal experience that premium car showrooms are his favourite targets. The showroom I work in is a franchised dealer for a well-known manufacturer of premium British sports cars, which makes us a prime target for this sort of behaviour. About a month ago, I was checking my emails at my computer when I heard some heavy breathing to the side of me. I looked up to see our local anorak standing there. I’d seen this guy a few times before. I knew never to talk to him, as he loves to ask overcomplicated and irrelevant questions to make himself feel more intelligent than us salespeople. But there was no avoiding him this time, so I begrudgingly greeted him and listened to what he had to ask. It was worse than I anticipated. When an exciting new model of car is launched by our manufacturer, an example is sent on a tour of all the dealer branches in the country for prospective customers to have a look at. Our group had announced that this would be happening soon for a particular vehicle and the anorak wanted to know when he could come and see it. This was bad, very bad. I knew exactly when the car was coming to our showroom, but I couldn’t tell him or else he would turn up and start sniffing around it during the day it was here, putting off people who might actually buy one! Knowing I had no other choice, I gave him a date… it just so happened to be the day after the car was leaving our dealership. We had a successful launch event and, sure enough, the anorak duly turned up too late and was given the disappointing news that the date had been changed at the very last minute and he had missed his opportunity. I must admit, I did feel a bit bad for the chap, but at the end of the day, you have to put your actual customers before the time-wasters.

‘You have to put your actual customers before the time-wasters.’

Tell us your story

Have you something to confess? Email our head of editorial (you can find her details on page three) or post it on our forum – cardealermagazine.co.uk/forum CarDealerMag.co.uk | 75

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...in association with Traka

GDPR will make us better marketers In the meantime, check out this last-minute action plan as May 25 approaches, says Paul Smith

y the time you read this, we will be only days away from the deadline for General Data Protection Regulation (GDPR) compliance. Rather than giving you chapter and verse on the regulation which you will probably have read about endlessly over recent months, I’ve put together a brief ‘Last Minute GDPR Action Plan for Dealers’ Digital Marketing Teams and their Managers’.

‘soft opt-in’ option which means if you have already obtained consent and personal data as part of a car or add-on product or service sale (or negotiation for a sale) you can continue marketing similar products and services as they bought (or nearly bought) before. That said, you still need to offer them opportunities to opt-out of receipt of further marketing in every message you send them going forward.

Map customer data flows Document what personal data you hold, where it came from, how it was obtained, who you share it with and what you use it for. You need to know all this as the starting point. This analysis will determine which data subjects need to be approached as part of a ‘re-permissioning’ exercise essentially giving them the clear and definite option to opt out of further mailings. It will also tell you where vulnerabilities lie with your online marketing partners. You will need to make sure all people who process customer data on your behalf also handle this data in compliance with GDPR. You’ll need to draft and agree a Privacy Notice to aid communication with customers and third parties collecting and processing personal details on your behalf. This explains how you keep and use their data.

Be ready for ongoing unsubscribes Tighten systems for unsubscribing customers from further marketing communications. You will also need to be ready to suppress some personal data completely and, on request, delete an individual’s data from your lists. You might want to provide other channels to do this other than clicking on buttons or ticking boxes online.

CRM systems need to be integrated with content marketing/marketing automation systems In our new digital marketing world, dealers need to ensure only content streams which the customer has opted into are being sent – so they may need to explore managing this process using a content marketing system which feeds engagement analytics back to the customer’s records. The idea is that the system adjusts according to evidence of engagement with specific information and only sends the content that is relevant. You need to allow customers to decide if there is anything else they want from you only after clear engagement is established.

Database and content segmentation GDPR creates a great opportunity to get your content marketing strategy sorted. In an ideal world, you should segment your database into customers and prospects with interest in particular types of vehicles and/or marques and then give them an opportunity to subscribe to streams of content linked to these vehicles. The only snag then is that you need to ensure that each of these content channels is being fed with fresh and high-quality video and written content with options to link to specific stock available to view online from there. The segmented lists you will be building will become a set of lists of engaged, warmed leads for specific types of vehicle. These people are likely to

Summary When it comes down to it, GDPR will make us all better digital marketers. It creates the framework for a more targeted, more ethical and frankly more effective digital marketing strategy. Less is more: lower numbers of records, thinner files on each customer so you are only keeping data that is legitimate for the purposes which you have elected to use it for, and only for the length of time it’s truly needed – all approved by the customer him/herself. We need to respect customers enough to let them make the decision to be on your database. They are likely to repay that respect with deeper engagement which ultimately should lead to more sales and happier, more loyal, customers.

Clean up your databases You then need to clean up your databases and seek affirmative consent for continuing to send them materials. You also need to effectively record that consent, so it can be referred to later. For existing customers, you have the GDPR’s

come to your dealership when they are ready to buy if you keep in touch with them.

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

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CarDealerMag.co.uk | 77 15/12/2016 09:56

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Long-termers. LATEST FROM THE FLEET...

Audi SQ5 James Baggott takes ownership of Audi’s powerful mid-range SUV to see if it’s a fun, useful car. by JAMES BAGGOTT @CarDealerEd

t sounds like the perfect recipe for sales success: Take one popular SUV, insert a punchy petrol engine and you’ve got a surefire hit on your hands, right? Well, not exactly. This is the Audi SQ5, based on the manufacturer’s big-selling mid-range off-roader, but now with an added shot of turbocharged petrol punch. While it might sound like the perfect combination, it’s come in for a bit of criticism, so we’ve taken ownership of one for a few months to get to the bottom of it. Some of the moans come from the fact Audi has swapped the powerful diesel engine in the old SQ5 for this petrol-only option in the new model. Under the bonnet is a frankly ridiculous 349bhp 3.0-litre turbocharged engine, mated to Audi’s quick-shifting eight-speed auto – it’s good for 155mph with 60mph ticked off along the way in just 5.4 seconds. There’s something not quite right about filling up an off-roader from a green pump – and the fuel economy certainly seems to agree. So far, over 1,500 miles, I’ve achieved around 23mpg, which is somewhat punishing my wallet. That said, I can’t help but think it’s a fantastic combination. On the road, it feels blisteringly quick, and while there might be a bit of body roll to contend with, it’s not horrendous and actually helps put the power down on our bumpy, pot-holed surfaces. Once you get your head around the fact it’s an SUV with lots of horsepower, you’re rewarded with a fun machine that’s perfect for family life. It’s the sort of thing that suits dads who don’t want to grow old – yes, it’s got comfortable seats, a huge boot and plenty of fixing points for a car seat, but ditch the kids and it’s great fun to drive. Plus, there are those handsome looks. The new Q5 was already a masterpiece of German engineering and the SQ5 tops it off, and it’s all the better in this glorious Azores Green metallic paint (£645). A deep, gaping grille and squat stance make it stand out, but the fake quad exhaust pipes are a bit of a disappointment. The starting price for the SQ5 is £50,440 – but, after options, KU18 LPF came in at a rather tingling £64,405. Yes, that’s quite the increase over

James with his new long-term Audi SQ5 and chatting to Wayne Yeates at Audi Portsmouth

THE KNOWLEDGE Model: Price: Engine: Power: Torque: Max speed: 0-60mph: MPG (combined): Emissions: Mileage to date:

Audi SQ5 £64,405 (as tested) 3.0-litre TFSI 349bhp 500Nm 155mph 5.4 seconds 34 195g/km 1,459

THIS MONTH’S HIGHLIGHT: Getting to grips with a car that’s enjoyable to drive and perfect for family life. base, but when you start ticking the boxes it soon adds up. And tick them I did. Vital additions include the head-up display (£900), adaptive air suspension (£1,000), panoramic glass roof (£1,400) and the parking assistance pack (£1,350). Not-so-vital extras, but rather nice to have all the same, include red brake calipers (£300), five-spoke alloy wheels (£1,500) and electric steering wheel adjustment (£400). The latter is important when lots of people

borrow your car like they do here, but quite why any normal car buyer would want to pay £400 for it is beyond me. I picked up the SQ5 from Audi Portsmouth sales executive Wayne Yeates. He said he’d been working at the dealership for three years and had never delivered a car in the same colour. ‘When it arrived all my colleagues came out to take a look – we think it’s the best colour we’ve ever seen,’ he said. Wayne showed me a few tricks with the Audi, like how to set the height the tailgate opens to, how to ensure all the doors open with one press of the keyfob, rather than just the driver’s, and a few other customisable options. So far the SQ5 fits into my life perfectly. I’ve already filled the boot with rubbish for the tip a few times, taken some long trips in comfort, and battled the snowmageddon that crippled the country in March. The increased trips to the petrol station have come as an unwelcome addition to my weekly routine, though. Whether the SQ5 is the perfect combination of power and practicality remains to be seen – but I’m sure I’ll enjoy working it out over the next six months. CarDealerMag.co.uk | 79

Long-termers. LATEST FROM THE FLEET...

Kia Stonic Ryan Hirons takes delivery of the new compact crossover – and his first impressions are positive ones. by RYAN HIRONS @ryhirons

ellow cars are incredible, it’s a fact. It was a pretty damp morning on the collection day of our latest long termer, but the canary-coloured Kia Stinger sitting in the corner kept things looking bright. That’s not what we came for though. Instead, my new machine lay tucked away at the back underneath a fabric sheet. Pulling it away revealed the latest compact crossover contender to come from the South Koreans – the Stonic. More precisely, it was a first glimpse of LF18 NKM – the Stonic 1.0 T-GDi ‘2’ I’d be taking the helm of for the next six months. Finished in Blaze Red, it’s powered by a 1.0-litre turbocharged three-cylinder petrol engine producing 118bhp and 172Nm of torque. The result is 0-60mph in 9.9 seconds and a top speed of 115mph. Perhaps more relevant to the real world is the claimed 56.5mpg – which sounds impressive – while emissions of 115g/km CO2 mean a reasonable first year tax rate of £165. As for practicality, it offers 325 litres of boot space while seating five. What equipment is fitted to LF18 NKM, then? Well, it’s in relatively Spartan ‘2’ trim, meaning luxury highlights include 17-inch alloy wheels, cruise control, LED daytime running lights and a seven-inch touchscreen infotainment system – albeit sans navigation. Thankfully, there’s support for Apple CarPlay and Android Auto to remedy that. As for looks? It’s no pageant winner, but it’s far from the ugliest thing on the road. It’s a well-proportioned design – if a little oversized. Parked next to my own Suzuki Swift, it looks like a monster truck. It does help red cars might be my favourite thing on the planet though, and this particular hue is one of the better examples out there. The price for all of this? £17,540 on the road. It’s a lot of car for the money, especially when you factor in Kia’s seven-year or 100,000-mile warranty (although we’re not expecting to have to exercise it). So, customary dealer handover photoshoot over, it was time for me to get behind the wheel of our new long-termer. A short, but extremely wet drive from Hendy Kia in Portsmouth and 80 | CarDealerMag.co.uk

Ryan collects his long-termer from Kirsty Hillman, product genius at Hendy Kia in Portsmouth

THE KNOWLEDGE Model: Kia Stonic 1.0 T-GDi 2 Price: £17,540 Engine: 1.0-litre three-cylinder turbocharged petrol Power: 118bhp Torque: 172Nm Max speed: 115mph 0-60mph: 9.9 seconds MPG (combined): 56.5 Emissions: 115g/km Mileage: 180 THIS MONTH’S HIGHLIGHT Taking the covers off LF18 NKM. Literally. back round to our Gosport HQ offered some positive first impressions behind the wheel. It’s not got face-ripping amounts of power, but it’s ample enough for the city-bound driving the Stonic is destined for and it’s surprisingly dynamic if you really push the limits – although that’s not what this is all about. What are we expecting to learn from our time with the car? Well, with the compact SUV market more crowded than ever, it’ll be intriguing to see if it can stand out. There’s also the question of equipment – with this such a relatively low-spec machine, it’s almost asking if there’s a need for some of the luxuries we’ve come to expect today (although built-in navigation would’ve been nice). With summer approaching, now we turn to planning some fun in the sun with the Stonic. Just a shame it’s not blue – I was hoping to christen it Stonic the Hedgehog…

OTHER CARS WE’RE DRIVING

Seat Arona Mileage: 2,612 It’s modern, sharp, stylish and great fun to drive. Production editor Dave is very impressed with Seat’s latest compact crossover – and its ‘mystic magenta’ paint job is certainly eye-catching.

Citroen C3 Aircross It’s another compact SUV, but can it deliver off-roader levels of go-anywhere ability? by CHERYL KINGSTON @GobbyGibbs

hen it comes to bad cars, I’ve got the skinny on them – thanks to a £50 Ford Fiesta I purchased when I passed my driving test some 18 years ago. THAT would definitely fit into the ‘bad review’ category, but it did have a piece of wood and wire holding the gearbox together after all… This Citroen C3 Aircross is a totally different story, and I feel like my car fortunes have transformed every time I get behind the wheel! I’ve had the Aircross for several months and every day when I do the little jump up into the driver’s side – I’m only five foot three inches tall – it’s still a pleasure to start the engine and head on my merry way. While there have been loan cars that I’ve loved and some I’ve been keen to get rid of sharpish, with the Aircross I am genuinely dreading the day I have to return it… We’ve had some adventures together and, due to the weather recently, we’ve gone through all seasons in the space of just a few short months. Obviously there’s been rain and wind due to the longest winter ever, but there have been those few brief days of real summer sun and two rather persistent bouts of snow. I’m proud as punch to report that the car I’ve grown to love handled itself on all these occasions rather well! It was very easy to

Cheryl’s car met a close relative, below left, in a supermarket car park recently...

manoeuvre in the snow – not an easy feat given that I live opposite a farm and in a little valley meaning all the white stuff congregated pretty much outside my door step. I was very impressed with how it gripped the road and handled itself when other cars were struggling to drive straight, but that could just be down to my excellent driving skills. I hear that SUVs are the fastest growing sector of the new car market and I can totally see why – you get quite a lot of car for your money – even if this one is more on the compact end of the segment.

One of the areas in which the Aircross really triumphs is comfort, and this is down to Citroen’s mission to build the most comfortable cars on sale. The interior is stylish and classy, and the seats are as soft as my sofa at home meaning long journeys are more than just a bit comfortable. The whole car is light and spacious and although the storage areas aren’t particularly generous, nothing in the car feels compromised. There’s a spacious footwell and wide range of adjustment in the seat and steering wheel that, for someone like me at my modest height, is extremely helpful. Overall I can totally see why the Citroen C3 Aircross has been praised by even the harshest of critics and it totally gets my vote. Does that mean I can keep it now?

THE KNOWLEDGE

Subaru Outback

Volkswagen Amarok

Mileage: 17,577

Mileage: 4,592

One of the big frustrations head of video Nigel has with the Outback is the lack of a DAB radio. There’s nothing more frustrating than listening to TalkSport with a crackle in the background!

The big Amarok has been thrown into all sorts of activities over the past month, including trips to the tip and towing a stricken Volkswagen classic. It’s handled everything without any fuss.

Model: Price (as tested): Engine: Power: Torque: Max speed: 0-60mph: MPG (combined): Emissions: Mileage:

Citroen C3 Aircross £18,610 1.2-litre 109bhp 205Nm 114mph 11.8 seconds 56.5 115g/km 5,987

THIS MONTH’S HIGHLIGHT: Feeling that I have genuinely made it in life! 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

Yes, technology is moving very quickly, but will we really be selling to robots?

‘H

ello, I’m calling on behalf of a client and I’d like to inquire about a car.’ Sounds like a slightly strange way to start a conversation with you, but something about the phone call is not what it seems. Intrigued, you continue and ask what car they’re looking for. ‘It’s a 2015 Ford Focus, in black, advertised on your website and Auto Trader.’ OK, that’s a bit more specific, so you try to find out what they want to know about it. ‘Can I book an appointment to come in and give it a test drive?’ Sure thing, you think. They sound keen and you go about arranging a time. ‘So, May 25, at 12pm – my client will see you then.’ Test drive booked, potential business on the way, nothing unusual about that, right? But did you realise the whole conversation you’d just had was with a robot? A seriously clever, artificial intelligence, deeplearning machine just conversed with you on the phone to book a too-busy-to-callthemselves customer in for a test drive. Sounds like something out of Hollywood, right? Well, it’s not. It’s here, it’s nearly ready and it’s in the last stages of testing now. Called Google Duplex, it’s an extension of Google Assistant, the little voice that pipes up when you say ‘OK, Google’ anywhere near one of the Android-powered devices. Demonstrated earlier this month at Google’s tech conference, CEO Sundar Pichai played a phone call of its Assistant making appointments for real people, with real businesses. After asking the software to make an appointment for a hair cut, the machine called the business and interacted, back and forth, to arrange a time and date. And if you’re thinking it was carried out in a computerised voice you’d spot a mile off, think again. This chat was complete with artificial ‘erms’ and a casual ‘mmhmmm’ as the real person checked their diary. If you want to hear it for yourself, just stick ‘Google Duplex’ into, er, Google and it’ll soon appear. It’s pretty scary. But what does it mean to you? Well, in the very near future, instead of time-wasting PPI calls, there’s a good chance you’ll be getting countless calls from Google robots instead. The trick will be working out how to spot the real people from the AI – and then working out if someone who has used Google Assistant to book an appointment with you is really serious or are they just asking their phone to call hundreds of dealers? Or it could be a busy businessperson who hasn’t got the time

to wait on hold or battle through your receptionist but has found their ideal car and simply wants AI to deal with the problem for them. It’ll be impossible to tell. Perhaps car dealerships will employ artificial intelligence-powered robotics to replace their receptionists to deal with all the calls. Then you’ll have computers talking to computers, dealing with the boring, mundane tasks like how long the MOTs are, opening hours and if you do finance. Excuse me for thinking it all feels a little bit Skynet. It’s surely only a matter of time before Google releases its full AI system on the world to power everything, it decides to launch nuclear bombs to destroy us and we need Arnie to save the world. OK, let’s hope they’ve got a lid on that and we don’t end up in a real-life sci-fi movie – but surely it’s only one small step between robots arranging Ford Focus test drives and them killing us? We know that the car industry is currently working on technology that is many years ahead of that which it has deployed today. It has working autonomous cars and vehicles that can talk to each other. But let’s face it, the automotive world isn’t really as cutting-edge as manufacturers would have us believe. Just think how far ahead the technology worlds of Google and Apple are with their future products yet to be rolled out. These are firms that really are shaping the future, not following the lead of others and playing catch-up like most car firms. How long before consumers are able to delegate the whole carbuying process to a robot who’ll snap up a robotic, fully autonomous car and then deliver it to your door? A few years, maybe, 10 at a push. The world is moving at a frightening pace. It’s how the businesses you run now decide to interact with it and deal with the challenges and opportunities it presents that will be key. But if Siri is still struggling to set a timer, and autocorrect constantly irritates by getting things wrong 95 per cent of the time, what are the chances of a robot managing to extract the right information about the AdBlue levels of an Audi A5 from your receptionist? Perhaps our jobs are safe for a little while longer yet…

‘The automotive world isn’t really as cutting-edge as manufacturers would have us believe.’

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

CMY

CarDealerMag.co.uk | 83

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