BIG MIKE: IT MIGHT LOOK LIKE I’M STRUGGLING, BUT I’M WEALTHIER THAN EVER
Issue 130 | January 2019 | CarDealerMag.co.uk | £5
LA MOTOR SHOW: A WEIRD TRIP TO THE GOLDEN STATE
CDX19
REVEALED: OUR FOUR HEADLINE PARTNERS FOR HUGE EXPO
! O V A R B ALFA KE THE FIGHT TO PORSCHE TA V SU N IA AL IT RY XU LU BUT CAN
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GOING, GOING, GHOSN! THE DOWNFALL OF A GIANT OF OUR INDUSTRY
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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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Welcome.
UNPOPULAR car opinions have got me thinking a lot at the moment. It all started when our almost-qualified apprentice Ted Welford decided to specify a Porsche Macan using the manufacturer’s online configurator. For a reason I can’t fathom (and at this point I should mention that the exercise was just for his amusement), he decided to colour co-ordinate the wheels to the bodywork. That doesn’t sound too offensive – until, like Ted, you paint the bodywork in Miami Blue and create a vehicle that looks only slightly more sophisticated than Barbie’s SUV. It inspired me to find out if opinions that might be considered unpopular were truly disliked. (I also need to mention that Ted didn’t think there would be anything wrong with his turquoise car.) Here’s your opportunity to play along and see if you agree. There were three main topics: body style, fuel types and those niggly things you can or can’t live without. Let’s start with one that was genuinely unpopular – that electronic handbrakes are better than mechanical ones, along with the caption, ‘Why would I want to crank one like a caveman?’ I ask you, why would I want to try several combinations before I can actually put the handbrake on? Up? Down? Used with the brake pedal at the same time? Oh look, it seems to have come on automatically. And despite so many people buying SUVs, of the small sample of around 150 people on my Instagram, most people think they’re unnecessary. A resounding 77 per cent, on the other hand, think estates are a much better option. Possibly the fact that every car comes in a shade of grey led to the question, ‘Can’t we have proper colours again?’ When it comes to BMW drivers, new or old Porsches and cyclists, people were weirdly split down the middle.
On the whole then, it seemed that when put to a vote, what people believed would be unpopular actually wasn’t unpopular at all. So maybe the lesson is that we should stop worrying what everyone thinks and all be a bit more like Ted. Now on to some other opinions in this magazine. This month we’ve got Dave Brown’s review of the Kia e-Niro, which he went all the way to South Korea to test. It’s rare that we let him out of the office these days, so it was quite an adventure for him. Jack Evans has been putting the thrilling Stelvio QV through its paces, too – it’s on the cover of this magazine. We’ve also got the results of our Used Car Awards and so many of your wonderful faces gracing the pages of this magazine. I think there are still a few people out there who are recovering from the night, but I’ve got to say with my hand on my heart this was by far the most boisterous UCA I’ve attended. It’s very unusual that Mike Brewer has to ask twice for the audience to be quiet! It’s always an incredible event, though, and such a lovely experience to see people who have worked so hard being rewarded on the night. This year there were so many happy faces and hopefully you’ll all enjoy reliving the occasion in this edition. Popular or unpopular, I’m not sure, but we’ve also got the full details of Carlos Ghosn and the scandal over his financial statements. It’s fair to say it was pretty surprising either way, and you can turn to my column on p21 to read my review of everything else that shocked us in 2018 too. Without further ado, enjoy the issue!
Rebecca Chaplin Head of Editorial CarDealerMag.co.uk | 03
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On test: Kia e-Niro Environmentally friendly crossover put through its paces in South Korea
What next for Carlos Ghosn?
ISSUE 130 I JANUARY 2019
Dashboard. The Big Story Around the UK CDX19 latest LA Auto Show Go-karting Challenge Rebecca Chaplin Big Mike Feedback Around the World Finance
6 10 13 14 18 21 23 24 26 28
Feature. Used Car Awards
Data File. Car Dealer Club The Statistics Fully Loaded Aftermarket Sean Speaks Market Insight Auctions Taking Stock
Forecourt. Alfa Romeo Stelvio QV Kia e-Niro
32 34
Suppliers Guide Long-termers James Baggott
36 92 94 96 100 103 105 106 107 108 112 114
Wraps come off the new Mazda 3
More action from great go-karting challenge
Our events... As voted for by dealers, Car Dealer Power is unique. Details of our 2018 winners are online at bit.ly/CDP-18. Watch this space for news of the 2019 event !
The Car Dealer Used Car Awards, sponsored by Black Horse, celebrate the used car industry. Full coverage of this year’s event runs from 36-81 in this edition of the mag.
The UK’s biggest automotive trade expo features the Live Stage, breakout sessions, workshops and much more. Save the date: June 12, 2019 – and find out more on page 13 of this issue. CarDealerMag.co.uk | 05
Dashboard. INCHCAPE
Festive pop-up store now open
INCHCAPE Mercedes-Benz of Leicester is displaying luxury cars at a Christmas pop-up store. The store, in the upper mall at Highcross Shopping Centre, gives customers a chance to experience the new EQ smart car, along with the A-Class and GLAClass models. They also have the opportunity to test their racing skills in an F1 simulator, pictured. Matt Hopwood, head of business for Inchcape Mercedes-Benz of Leicester, said: ‘Pop-up stores are a brilliant way of bringing the brand to the wider general public, especially during this busy Christmas period. ‘We have some great activities planned and are sure everyone will enjoy getting to know the team and what the brand can offer them.’ There will also be Mercedes gift ideas, while children can be kept entertained in the kids’ activity zone. The team is welcoming shoppers to the pop-up store until January 17.
SMMT
New president set to take over GEORGE Gillespie is to be the new president of the Society of Motor Manufacturers and Traders. The executive vicepresident of automotive test systems business Horiba will take over from Tony Walker, the managing director of Toyota Motor Europe for its London office, on January 1. 06 | CarDealerMag.co.uk
THE BIG STORY
So, what’s next for Rebecca Chaplin charts the rise and fall of an industry giant and asks if the alliance that he headed can weather the storm of the scandal he’s caused.
O
ne of the biggest names in the car industry has found himself in the middle of a major scandal after decades of being hailed as the saviour of many motoring brands. Nissan Motor Company chairman Carlos Ghosn was arrested in Tokyo on November 19 on suspicion of falsifying his financial reports. As this edition of Car Dealer went to press, he had been charged with under-reporting his income by some five billion yen (circa £34m) over five years. The fallout has seen Ghosn lose his position as Nissan chairman, although he remains on the board. The other Japanese member of the Renault-Nissan-Mitsubishi Alliance followed suit on November 26. It marked the end of a powerful, two-decade-long reign at Nissan. The manufacturer said its own internal investigation, prompted by a whistleblower, found serious misconduct including under-reporting of his income and misuse of company assets. Another Nissan executive, Greg Kelly, was arrested on suspicion of collaborating in the wrongdoing and was also facing dismissal as a representative director. Both Kelly and Nissan have also been charged with the under-reporting of Ghosn’s pay. In
addition, Ghosn and Kelly face fresh allegations of under-reporting another four billion yen (circa £28m) for more recent years. It’s been a dramatic downfall for Ghosn – one of the biggest figures in the car industry, a man who helped drive turnarounds at both France’s Renault SA and at Nissan, and then managed an alliance between them that sold 10.6 million cars last year. Renault voted to keep Ghosn as chairman and chief executive but appointed Thierry Bolloré, its chief operating officer, as temporary deputy chief executive to lead the team. ‘Mr Ghosn, temporarily incapacitated, remains chairman and chief executive officer,’ a statement from Renault’s board said. While Ghosn deals with his legal issues in Japan, Bolloré will have the same authority to run the company as the CEO, it added. The French state owns 15 per cent of Renault and president Emmanuel Macron said the government ‘will be
extremely vigilant about the stability of the alliance’. Renault’s board said its decision was made with an eye towards keeping the company on a steady course ‘to preserve the interests of the group and the continuity of its operations’. The identity of an eventual successor to Ghosn had been a hot topic even before his arrest. The 64year old had announced he would stay in his role until 2022, but the big question now is, who can replace him and be acceptable to everyone? Already, frictions between Renault and Nissan are emerging, with Renault proposing that it supplies a successor from within its business with equal authority to Ghosn. However, according to Japanese newspaper The Mainichi, Nissan has already rejected this proposal. Nissan CEO Hiroto Saikawa has shared his view that the management structure that allowed Ghosn so much power should be reviewed. The arrest has also allowed for
‘Mr Ghosn, temporarily incapacitated, remains chairman and chief executive officer . . . Mr Bolloré will lead the management team.’ Statement from Renault’s board
CarGurus acquires PistonHeads from Haymarket group USED car marketplace CarGurus has signed an agreement to buy motoring website PistonHeads from Haymarket Media Group. The site, founded in 1999 as a forum to discuss TVRs, was sold to Haymarket in 2007, by which time it had become a leading online automotive platform. The news was posted on the PistonHeads website, with CarGurus saying it wanted to use the comments about the announcement as a form of guidance to understand what the vast community at PistonHeads wanted
to see from the site. The decision to buy PistonHeads has been made as part of CarGurus’ ambition for UK growth, just three years on from its introduction to this market in 2015. The announcement also stated that dealership listings will now be visible across CarGurus platforms, including the motoring website, increasing the value of listing stock on its marketplace. CarGurus chief operating officer Sam Zales said: ‘CarGurus’ momentum in the UK continues to
build, and aligning the CarGurus and PistonHeads brands enables us to accelerate our audience growth and continue to innovate our transparent marketplace. For dealers in the UK, this combination will make CarGurus an even more compelling platform.’ CarGurus chief executive Langley Steinert added: ‘PistonHeads is one of the UK’s most trusted and influential digital motoring brands, and we see it as a perfect fit with our own consumer-centric model and pioneering ethos.’
What were the best-selling cars in November?
Top 10 from the SMMT, p10
Carlos Ghosn? other hostilities in the alliance to come to light, and Saikawa has said that Nissan and Renault’s relationship is unbalanced, with the French brand owning a 43.3 per cent share of Nissan while the much larger Nissan owns just a 15 per cent stake in Renault. A French citizen born in Brazil, Ghosn became something of a corporate superstar in Japan as he led Nissan’s revival from near-bankruptcy after Renault sent him to help in 1999. Ghosn served as Nissan’s chief executive from 2001 until last year. He then became chief executive of Renault in 2005, leading the two carmakers simultaneously. In 2016, he also became chairman of Mitsubishi Motors after Nissan took it into the alliance. Analysts say the future of Nissan’s alliance with Renault may be at stake, although a recent Nissan statement said the company’s leadership was determined to minimise the impact of recent events on the partnership. ‘The longstanding alliance partnership with Renault remains unchanged,’ the Nissan statement said, stressing the alliance rather than any misdeeds. It also said the board would study setting up a third-party committee to
UNCERTAINTY
Manufacturing falls 9.8 per cent UK CAR manufacturing fell by nearly 10 per cent in October with 15,255 fewer units produced compared with the same month a year ago, according to data published by the SMMT. Market turbulence, uncertainty over Brexit and model changes all played a part in the 9.8 per cent decline, it said.
beef up governance at Nissan. In a lengthy news conference, Saikawa expressed his view that too much power had been concentrated on Ghosn, with too little credit given to others working for the company’s success. Janet Lewis, managing director and head of industrial research for Asia at Macquarie Capital Securities in Tokyo, said in an interview that an adjustment was needed to give Nissan more say in the alliance with Renault. The partnership remains crucial for both companies, she said, since apart from financial ties the companies also share technology and parts. The carmakers need to be more like roommates than a married couple, ‘so they have to find a way to share their house and share all of their expertise, because it’s very necessary in terms of new automotive technology, new platform development,’ Lewis said. ‘They need to figure out how they can continue this and still live happily together in the same house.’ Only time will tell if they will be able to continue to co-habit successfully.
Carlos Ghosn – too much power?
‘WLTP unwind’ gives an October boost to dealer results THE average motor retailer made a profit of £6,000 in October, according to the latest figures from ASE. The sum represented an improved performance over the same month last year – and the positive result appears to be directly related to the unwinding of WLTP-related supply issues, with a number of brands that had a poor September managing to catch up on the vehicle sales front. Mike Jones, chairman of ASE, the profitability specialists, said: ‘Traditionally, following on from a
registration plate-change month, we see a fall in used car stock levels. ‘However, in October, we saw a rise from the September levels. ‘Profitability remained strong, and vehicles are in short supply. However, I will be monitoring this as we go through Q4 to ensure that retailers are not storing up potential problems.’ Jones observed that the growth in used car sales volumes showed no signs of abating, with more increases in October. He noted: ‘Whilst some of the increase has been related to
supply-side issues for new vehicles, there also seems to have been a change in focus for franchised retailers as they focus more closely on this part of the business. ‘As we move through the budgeting season, many businesses are finalising their budgets for 2019. This comes at a time where the route to market for new vehicles is continuing to evolve, with increasing levels of direct sales from brands to customers and more agency agreements being introduced.’ Market Insight, p105 CarDealerMag.co.uk | 07
Dashboard. UNVEILING
Mazda puts its art into new 3
T
he fourth-generation Mazda 3 was unveiled at the LA motor show, making its debut with a clever engine and smart new design. Available in hatchback and saloon guises, the best-selling Mazda takes styling cues from the Japanese brand’s recent concept cars and puts them into production. Mazda claims the model represents ‘car as art’, with the firm’s head of design, Ikuo Maeda, adding: ‘We have elevated design quality with this car to that of art and that is not easy as complicated restrictions apply to car designs.’ Quite whether you’d be able to call the new Mazda 3’s design artistic is up for debate, but a smart grille that bleeds into the headlights and swooping body curves will mean it certainly stands out from the crowd in the mid-sized segment. However, it’s the engine that will really pique interest as it uses diesel
08 | CarDealerMag.co.uk
by JAMES BAGGOTT @CarDealerEd
technology to increase the efficiency of a traditional petrol engine. The new 2.0-litre Skyactiv-X unit is said to reduce fuel consumption by a third and dramatically improve emissions, helped in part by a new 24-volt mild-hybrid system that boosts the engine. Two traditional petrols – a 1.5-litre and a 2.0-litre – will be offered along with a 1.8-litre diesel unit. An all-wheel-drive system will also be available, but there’s no word yet on
whether it’ll come to the UK. The dash has a smart design with a new 8.8-inch screen, and the maker claims it has focused on comfort, ergonomics and a premium feel inside. Mazda wants to push itself further up the premium pecking order and thinks this will be the model to help it achieve that. Prices have yet to be confirmed, but it’s rumoured it’ll start from just over £23,000 when it arrives in the spring of 2019. LA Auto Show special, p14-15 James Baggott, p114
MOTORPOINT
Revenue and profit both up in first half CAR supermarket group Motorpoint has exceeded its expected revenue growth for the first six months of the fiscal year, achieving a 9.4 per cent improvement year-on-year. In total, revenues from April 1 to September 30 were up to £528.6 million from £485.2m in the first six months of the previous financial year. Profit before tax was up to £11.9m from £9.7m, or from £10.5m including exceptional items. The group also reported that its levels of repeat customers were up during the period to 29.5 per cent. Motorpoint Group chief executive Mark Carpenter said: ‘Over the first half of the year, the group has delivered a good trading performance and we are pleased with our progress.’
CarDealerMag.co.uk | 09
Dashboard.
News from around the UK
What’s been hitting the headlines on the home front? Here’s a round-up of stories STOKE-ON-TRENT
David ‘thrilled’ to be new general manager
DAVID Cain has joined Bristol Street Motors’ Ford dealership in Stoke-onTrent as its new general manager. He has worked in motor retail for more than 16 years, spending his whole career to date with the Blue Oval. Previously, he was general manager at a Ford dealership in Manchester. Cain, who in his spare time performs as an Elvis Presley tribute artist, said: ‘I am thrilled to join the team at Bristol Street Motors Stoke Ford. The site is fantastic and has a lot of potential.’
Thirteen of the new recruits with head of business James Boyd, far left
BOLTON
£10m investment pays off as 23 jobs are created FARNELL Bolton has created 23 jobs at its new £10 million dealership. The JLR showroom has welcomed apprentice service adviser Harrison Hanson, compound assistant Mark Gallagher and parts driver John Burgess, plus four showroom hosts, eight sales executives and eight technicians. James Boyd, head of business, said: ‘The £10m
CROYDON
BIRKENHEAD
New Hyundai site is its largest one in UK
Lookers on the ball to help find footie talent
THE Ancaster dealer group has officially opened a major new Hyundai site in Croydon, which becomes the South Korean brand’s largest showroom in the UK. Hyundai Croydon has relocated from a modest facility in South Croydon to substantial, fully refurbished premises in the prime retail area along Purley Way. Ancaster MD Stephen Wood said: ‘Our customers will be astonished by the difference between our old premises and this new facility.’
TRANMERE Rovers have signed a sponsorship deal with national motor retailer Lookers that has seen them receive a Grandland X SUV to help with their scouting activities. The vehicle will be primarily used by the club’s talent scouts as they search for the next generation of talent for the Merseyside Sky Bet League 2 club. The Lookers name will also appear on perimeter boards and car displays, as well as in matchday programmes.
10 | CarDealerMag.co.uk
that our parent company, Vertu Motors, invested in the new dealership has certainly paid off. ‘The group demonstrated its confidence in the town with this investment and it has allowed us to recruit from a pool of local talent. We have bolstered our existing team, with people across different departments, and we are very proud of that.’
Top-selling cars of November November 2018
Source: SMMT
Ford Fiesta Volkswagen Golf Mercedes-Benz A-Class Nissan Qashqai Mini Volkswagen Polo Ford Focus Vauxhall Mokka X Kia Sportage Vauxhall Corsa
5,193 4,678 4,104 3,195 3,170 3,115 3,068 2,778 2,731 2,594
The statistics, p94
SHEFFIELD
Charity’s seasonal mission given boost
MOTORPOINT is helping a children’s charity get mobile in the run-up to Christmas. The car retailer has provided Hallam FM’s Cash for Kids project with two vehicles to support its ‘Mission Christmas’ initiative. Charity manager Allan Ogle and his team have been given the use of a Toyota Hilux to transport their sleigh for Santa to turn on the lights at various events. A Hyundai i800 has also been provided to collect and deliver donated gifts for children.
Haggling: yes, no, or sometimes?
Feedback, p24
NORTH-WEST ENGLAND
ROCHDALE
Pentagon eyes up three TrustFord sites
From Aldi store to car supermarket
PENTAGON Motor Group is to buy three dealerships from TrustFord. The sites – in Warrington, St Helens and Runcorn – will be rebranded as Pentagon Ford. Pentagon managing director David Lewis, pictured, said: ‘We are very pleased to be adding Ford to the Pentagon group. We are keen to ensure that all current staff on the three sites transfer happily to Pentagon Ford.’ The deal, for an undisclosed sum, is set to take place on December 31.
WORK is under way on a £500,000 refurbishment project in Rochdale to transform a former Aldi supermarket site into one of the north-west of England’s most cutting-edge used car dealerships. Independent used car business Cartime announced in July that it had exchanged contracts on the 1.6acre Edinburgh Way premises in a £1.6m deal, which will create 25 jobs for the area, and the refit has now started. It hopes to open the doors to the public in January 2019.
GUILDFORD
‘When it’s cheaper to buy a new car than a used one, at least in the short term, it makes late-model used cars a tough battleground.’ Big Mike, p23
Christmas fair helps Alzheimer’s Society
INCHCAPE Lexus Guildford raised more than £1,000 for the Alzheimer’s Society with a Christmas fair at the dealership. The team invited people to join them for an evening of entertainment and fundraising with businesses in the area hosting stalls selling a variety of festive goods. Stallholders made a donation to the charity and customers took part in a raffle as well as a ‘guess the presents’ competition, raising a total of £1,014.83 for the charity.
ROCKINGHAM
MG shines spotlight on successful dealers
HIGH-PERFORMING MG dealerships have been honoured at the iconic British brand’s annual aftersales conference and Dealer Recognition Awards held at Rockingham. Customer service awards were given to Pinkstones MG in Stokeon-Trent and Nathaniel Cars in Bridgend, while Durham’s Fred Henderson MG and Brandon MG in Suffolk were given training awards. Meanwhile, Cambridge MG and Norfolk Motor Group triumphed in the accessories sales category.
STOCKPORT
Lookers Kia wins award for Motability excellence MOTABILITY customers in Stockport can be sure of receiving award-winning customer service when they visit local dealer Lookers Kia, which has won an award for its work with the Motability car scheme. The accolade is part of a programme of awards, launched last year by Motability Operations, to recognise and reward outstanding customer service
provided by Motability dealerships. The Dealer Awards programme is designed to reward best practice and ensure all Motability customers receive exemplary customer service across the Motability scheme’s national dealer network. Dealership general manager Michael Pollitt said: ‘All of us are incredibly proud to win this award.’
First drive: Kia e-Niro Dave Brown travels to South Korea to test new all-electric crossover. Page 34 CarDealerMag.co.uk | 11
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Dashboard. VENTURE
£30m raised for buy and rent site THE serial entrepreneur behind the Zoopla house-hunting website has raised more than £30 million for his next venture, which is aimed at disrupting Britain’s used car industry. Alex Chesterman, who made a windfall selling Lovefilm – the video rental company he co-founded – to Amazon seven years ago, is to launch a carbuying and rental website. Cazoo’s customers will be able to buy, finance or rent a used car online and have it delivered within 48 hours. In 2003, Chesterman launched DVD rental company ScreenSelect, which later became Lovefilm and was offloaded to Amazon for £200m in 2011. In 2008, he founded property platform Zoopla, which floated in 2014 and was recently sold for more than £2.2bn to US private equity fund Silver Lake. Cazoo is backed by seed funding from the media company Daily Mail and General Trust, as well as Stride Capital, Octopus Ventures, Entree Capital and others. Chesterman said: ‘I’m delighted to announce this investment in my latest venture, Cazoo. Buying a car should be no different to buying any other product online today.’
GENEROSITY
Awards night draw benefits charity A CHARITY that helps bereaved youngsters was delighted to receive a funds boost of more than £7,000 at the Car Dealer Magazine Used Car Awards. SeeSaw, which supports grieving children and young people in Oxfordshire, was the recipient of a cheque for £7,380 thanks to a prize draw at the event – and the fact that the total raised, £3,690, was doubled by The Lead Agency. CEO Anton Hanley said: ‘We were delighted to be able to add to the funds raised by the grand prize draw.’ Awards coverage, p36-81
LOOKING AHEAD
A great line-up of partners for our 2019 event C
ar Dealer Magazine’s conference and expo for the motor trade, CDX, can now announce its four new headline sponsors for the 2019 event. The partner sponsors will be Barclays, CarGurus, CitNOW and Cox Automotive, with each taking prime space at the show. CDX is being held at Farnborough International in Hampshire, above, on June 12, 2019. With more dealers through the doors than any other conference of its kind in previous years, CDX19 is expected to be another event packed with unmissable talks and seminars. Each headline partner will be offering their own insight into the industry. Delegates will get to hear from speakers and take part in fascinating debates at the conference, too. James Baggott, founder of Car Dealer Magazine and CEO of Baize Group, said: ‘We’re thrilled to have
by REBECCA CHAPLIN @believebecca
such a great line-up of headline partners for CDX in 2019. In previous years, our CDX partners have played a crucial role in creating a fantastic event that is enjoyed by all, and the range of expertise they have in different key areas of the industry fills me with confidence.’ Each of the partners will have plenty to talk about. All four are going through exciting new phases in their development and they will be keen to use CDX to explain what’s going on in their businesses and how it will affect dealers. In recent weeks, CitNOW has improved its product offering in response to client feedback. Meanwhile, CarGurus has stamped its authority on the UK car classifieds market by acquiring enthusiast website, forum and
classified site PistonHeads. Cox Automotive, with its range of brands, has recently announced big changes as it updates some of its products and develops new ones to the delight of dealers. With so many cars moving through its halls at Manheim sites and touched by the other businesses it owns, there will be plenty to discuss in Farnborough next June. Barclays and its Partner Finance motor retail arm have extensive knowledge of arguably the most important side of any business – money. Combined, our partners touch almost all parts of a car dealership and its operations. The conference will empower dealerships to make the most of their opportunities and we’ll be inviting dealers to join discussions on all kinds of topics. No dealer will want to miss CDX19 – and we’ll reveal how you can get tickets soon. Watch this space!
In association with
CarDealerMag.co.uk | 13
Dashboard. AMERICAN ADVENTURE
It all went a bit weird at the LA motor show James Baggott heads Stateside to see the newest machines the motoring industry has to offer.
S
trangely, in a land where chip portions could be weighed in tons, drinks are served in receptacles Brits class as buckets, and cities sprawl so far and wide they’d cover whole counties back home in Blighty, the Americans don’t do motor shows with similar excess. The Californian automotive showcase fills just two averagely sized halls in Downtown LA – a show that can be completed in little more than a gentle morning stroll. How quaint. Although it’s not a huge fixture in the motor show calendar, most manufacturers like the fact they can dominate the headlines with a half-decent new car launch while keeping their executives’ air miles topped up with a trip to the Golden State at the same time. I flew out to LA with Mazda, which had shown off its new 3 hatchback at an adjective-strewn presentation in Hollywood the night before the show. Claiming its new model was ‘car as art’ [sic] it paraded no fewer than four designers to regale the audience with tales of how the shape had been crafted from hand. Cut through the marketing waffle and Mazda actually has a smart new hatchback on its hands. It boasts clever engine technology that uses diesel know-how to improve the emissions and efficiency of a petrol engine by around 30 per cent. But I’ll let you make a call on the styling as I’m still undecided. In the show halls, Los Angeles’ madness had obviously been seeping through the air conditioning. Volvo had a stand with nothing on it, Subaru had launched a dog and even serial car show avoider Tesla had rolled up, dominating the very first stand attendees saw when they walked in. That last one is quite a departure for the renegade brand – one that has no franchise dealerships and refuses to launch its cars in the standard way. This was Tesla’s further stab-twistkill move to the traditional car industry for those car firm execs who had failed to notice one parked on every street corner in LA. 14 | CarDealerMag.co.uk
Elsewhere, Toyota had booked a quarter of a hall. Catching the eye was the brilliant boxy TJ Concept. It’s a car that’s never made it to the UK officially, but this one definitely should. A new Rav 4 was also on show, but its styling was, well, we’ll politely say less effective. While it may struggle in the UK, fellow Japanese firm Infiniti has a decent foothold in the States and was showing off its striking Prototype 10 concept car. It was officially unveiled at the Pebble Beach showcase in the summer, but this was the first time I’d seen it up close. It’s a truly breathtaking design. Getting less interest was the QX50 SUV. That’s probably because Infiniti has been peddling it for a while – in fact, we test-drove it in January at the official international launch, but it’s still to get a release date here in the UK. Big American brand Buick’s stand either had a really bad smell about it or reports of Novichok on the carpet, because everyone was ignoring it like the plague. That might be something to do with the fact it was pushing poorly rebadged Vauxhalls. I mean, it doesn’t matter how hard you hide the Vauxhall badge on a Mokka X, it still has the ability to make you sick from 30 paces. I watched the cleaners dutifully polish off invisible fingerprints from imaginary visitors on the cars while the carpet cleaner swept the same patch for 10 minutes then I got bored and moved on. Much like the rest of the world seems to have done with Buick.
Toyota’s new Rav 4, BMW’s M850i Convertible and the new Mazda 3
Next door, Volvo had attempted to launch a piece of wood. The Swedes had either forgotten the motor show was coming up, failed to load a ship in time, or were simply sticking a big two fingers up at the show with a stand that had absolutely no cars on it whatsoever. In a totally bizarre twist, it was mostly banging on about the future of mobility – one that we assume will be without cars – and its connected services. It even held a press conference that people attended. I couldn’t help but think it was all a bit Emperor’s New Clothes so walked away before it started. Instead, it was up to the Germans to make the show their own. Mercedes rolled out a fresh AMG GT and GT Pro, but it was the desertcoloured G Class that caught my attention. I mean, who doesn’t love an Angel Delight shade of brown? What’s that you say? Everyone? OK, we’ll move on.
The Mercedes G Class, Porsche’s 992 iteration of its 911 sports car and Infiniti’s striking Prototype 10 concept car
BMW had obviously picked up the Bigger Is Better memo from the Americans. It rolled out the whale-faced X7 off-roader that could not only swallow a boot-load of krill, but also has seven seats and a humungous Kardashian-belittling back end. A raspberry blancmange-hued concept – the Vision iNext – showcased BMW’s idea for the future of mobility. At least, unlike Volvo, this one was car shaped. With bendy seats, a teak floor and huge screens, absolutely none of it will ever make production, but it distracted the Americans long enough for me to get close enough to gawp at the 8 Series Convertible, which is lovely. Over in the second hall, Subaru was clearly trying to lure journalists into the back of a van with a cute dog to pet on its stand. Either that or the poodle-cross-lurcher was saying something about hybrids. Naturally, no one was looking at its new
Crossback Hybrid as they fawned over the brand’s pedigree chum. Me included. Jeep rolled out a big gun in the shape of the Gladiator pick-up-cum-SUV. With two bikes on the back, a twin cab and off-road looks, all it needed was Jet in the passenger seat and Wolf angrily getting whistled at by a Scot in a striped jumper to really top it off (one for the dads there). In all seriousness, it looked pretty cool and the Americans naturally loved it. Porsche stole the show with the launch of the 992 iteration of its iconic 911 sports car. With some incredible details – such as the integrated exhausts and LED rear light bar – it’s a gentle evolution of a classic and is absolutely stunning. This being LA, electric cars were very much on the agenda too. Kia launched a retina-burning luminous Kia Soul EV, coming to the UK next year, with the same powertrain as the Niro EV, while Audi took
Toyota’s TJ Concept, BMW’s Vision iNext and Infiniti’s QX50
Subaru’s cute dog was a talking point the covers off its e-tron GT concept. The latter, an A7-sized four-door sports saloon, will have a range of 248 miles and will be able to hit 60mph in 3.5 seconds. I hate to say it but, as good as it looks, that range is poor and needs to be at least double that to really be of interest. More interesting in the electric car stakes was the Rivan R1S. A modern take on the Range Rover, the off-roader has a 400-mile range and can hit 60mph in just three seconds. Four individual motors power each individual wheel so it can tackle the rough stuff. Rivan says it will start production in 2021, but there’s no idea yet if it’ll come to the UK. And that was about it. I could share the countless pictures I took of visitors wearing very LA outfits – there were a lot of special hats, suits covered with Pacman and many, many beards. But I won’t. This is a car round-up after all. [CD] CarDealerMag.co.uk | 15
Dashboard.
The US dealership hit by a double disaster.
Around The World, p26
MOURNING
Tributes are paid following sudden death of Nas Khan
HYUNDAI
CEO Whitehorn standing down
by JOHN BOWMAN john@blackballmedia.co.uk
F
ormer Jennings Motor Group boss Nas Khan has died suddenly at the age of 58. It is understood that he suffered a fatal heart attack in Stockton. His death comes just two months after he sold the automotive group to Lookers for £5.6m for the entire issued share capital, although Jennings held on to its Stockton Kia branch and Harley-Davidson franchises in Gateshead and Leeds, rebranding the two motorcycle businesses. Khan’s life was a true rags-to-riches story, with the businessman arriving from Pakistan as a 14-year-old unable to speak English. At just 22 years old, though, he became a sales executive at Jennings Ford in Stockton and rose through the ranks to become group sales director – a role he held for 13 years – and then group managing director in 2005. He was involved in three management buyouts, the first of which was from the third generation of the original Septimus Jennings family, and resulted in a fourth
‘His charity work served as a fine example to other senior decision-makers within our industry.’ Lookers chief Andy Bruce
Nas Khan received an honorary doctorate from Teesside University in 2017 promotion to sales and marketing director. He then took over as managing director and later became sole proprietor of the company. In 2015, he received Ford’s global ‘Salute To Dealers’ award and was named Teesside Business Executive of the Year. Khan was also recognised as a philanthropist and supporter of many good causes on these shores and in Pakistan, being awarded an OBE in April 2017 for services to charity and the economy, while three months later he received an honorary doctorate in business administration from Teesside University in similar recognition. His charitable achievements included building a village in Pakistan in 2010 after floods caused widespread devastation. Andy Bruce, Lookers chief executive, said: ‘It is with great sadness that we have learnt of the passing of Nas Khan, the former
owner of Jennings Motor Group. ‘Nas was an extremely wellregarded member of the business community, whose dedication, passion and meticulous stewardship helped Jennings become one of the most recognisable brands in the north-east and the UK as a whole. ‘His established and recognised charity work served as a fine example to other senior decision-makers within our industry and was typical of a man who was as well respected for his kind heart as he was for his shrewd leadership. Our thoughts and condolences go out to his family and friends, as well as our new colleagues at Jennings, for whom this will be a huge shock and tragic loss.’ Among those paying tribute to him was photographer Ian McClelland, who called him ‘a true gent and family man’. Khan is survived by his wife Naila and children Sohail, Sairah, Natasha and Samah.
TONY Whitehorn is to stand down from his role as president and chief executive of Hyundai Motor UK at the end of this year after 13 successful years with the company. He will continue working for the business as executive adviser for the first part of 2019 to assist with the transition to the new management. Whitehorn joined Hyundai Motor UK as managing director in 2005. In 2011, he became the first non-Korean in the history of Hyundai Motor Europe to be promoted to the role of president and CEO. In that time, he has overseen the company’s rapid expansion in the UK, as it went from selling roughly 28,000 units a year in 2008 to 56,000 in 2009 following the success of the government’s scrappage scheme. The business has been on an upward trajectory ever since, with Whitehorn and his team guiding the company from 23rd to one of the top 10 car brands in the UK, achieving sales of over 93,000 units last year.
Auto Trader and Cox Automotive are given go-ahead for joint venture THE competition watchdog has cleared the way for Auto Trader and Cox Automotive to work together to create a new automotive wholesale marketplace. The new business, to be called Dealer Auction, will be co-owned by both companies and run by Le Etta Pearce, who has held senior roles within both organisations. Dealer Auction will aim to 16 | CarDealerMag.co.uk
provide a leading digital marketplace in the UK. It will give fleet companies, manufacturers and retailers an efficient and convenient way to dispose of their stock of vehicles. Retailers will gain access to a comprehensive range of vehicles available for them to buy, and this will be supported with the data and tools to allow them to select the
right vehicles for their needs. The ruling from the Competition and Markets Authority effectively means that the new venture is ‘not expected to result in a substantial lessening of competition within any market in the UK’. The new arrangement will combine three businesses on to a single platform. Cox Automotive will transfer across its Dealer-
Auction.com and Manheim Online businesses, while Auto Trader will transfer its retailer-to-retailer platform Smart Buying (formerly known as Autotrade-mail). Trevor Mather, Auto Trader’s chief executive, said: ‘I am delighted we are creating this joint venture alongside Cox Automotive.’ He said the process would now be quicker and cheaper for all parties.
CarDealerMag.co.uk | 17
Dashboard.
ROUND 2 – SOUTH
Devon delight! Plymouth team take top honours at Eastleigh Adam Weller was trackside at TeamSport Karting’s Hampshire circuit on an exciting night of racing.
T
eamSport Southampton played host to the second qualifier of the Car Dealer Magazine Go-Karting Challenge in association with Close Brothers Motor Finance on November 21. Close racing was very much the story of the evening, with a battle for the lead becoming the focus for most people who were trackside. When the 90-minute race burst into life, two karts immediately broke away from the pack, led by the #8 of Bel Royal Kia, with drivers Michael Raynes, Steve Romeril, Dan Hegarty and Max Brochet. The Kia squad was followed by the RL Motor Services team of boss Richard Lakey, Ross Pinder, Justen Blencowe and Sam Copeland. While the RL team had driven from Plymouth, no one had a story that could match the Bel Royal outfit, who had flown in from Jersey. The first red flag came out within five minutes of the start, but even by then there was a clear gap between the top two and the rest of the pack.
That red flag would spell drama for several other outfits. Roundstone Vans’ Mark Simpson would end up facing the wrong way and feeling winded after a pile-up at the track’s sole hairpin, which came about because of a slowing Kart #11. That team, fronted by James Ellwood from Close Brothers, had to switch to the #15 kart under the red flag, as driver George Hawkins had suffered a snapped throttle cable. Asked if this was down to contact, Hawkins replied: ‘No, it was because my foot was being pressed against the pedal too hard!’ Once racing resumed, it was the team from the Channel Islands that would lead the way for much of the race’s early stages, and this was only helped by a 60-second time penalty for RL Motor Services as the race approached half distance. In spite of the penalty, Lakey and his team gradually chipped away at the gap over the following laps. Lakey took over the kart with just under half
of the race to go. Asked if he was confident in his boss’s speed, Blencowe said: ‘Well, he’s the boss, so of course he’s quick… I’ll be able to ask for a pay rise now I’ve said that!’ As it turned out, Lakey did have good pace, and with 35 minutes left on the clock he retook the lead for his team at the Eastleigh event. The battle at the front remained close, with the two teams – RL Motor Services and Bel Royal – within spitting distance of one another as the final third of the race began. The #8 Bel Royal team made their final stop with just over 25 minutes to go. However, just two laps after Hegarty handed over to Raynes, the black flag waved in Raynes’ direction. It turned out that Hegarty had overtaken under yellow flags moments before pitting, meaning that Raynes had to serve the 60-second penalty on his behalf. This marked the downfall of Bel Royal, who would ultimately finish fourth – just ahead
Feel the need for speed? Then sign up for a chance to be part of this great 18 | CarDealerMag.co.uk
A new arrival and a farewell too.
PHOTOGRAPHY: JON REAY
Long-termers, p112-113
See more go-karting pictures at bit.ly/eastkart
New year means more karting THE Car Dealer Go-Karting Challenge in association with Close Brothers Motor Finance heads to Essex for the next qualifier, which will take place at TeamSport Basildon on January 23. This track, a 500-metre layout with a relatively even split between two floors, is one that will reward patience among the backmarkers, with many tight corners. In addition, it features two fast sweeping turns and a fairly high-speed kink, which makes it one of the more varied layouts on our calendar. As with the previous events, the top two finishers will automatically qualify for the March final, while the third-place finisher and the fastest lap holder will also be in contention for a grid slot in the decider. After Basildon, the challenge arrives at Bristol for the final qualifier on February 20, before the best dealership teams from across the country converge on Reading for the grand final on March 28.
Podium pride for the top three teams
Full results: Round 2 – South
1. RL Motor Services
180 laps
2. Roundstone Vans
179 laps
3. Close Brothers (Macaulay)
178 laps
4. Bel Royal Kia
177 laps
Closing the gap on the track
5. Close Brothers (Hammond)
177 laps
of the #16 outfit fronted by Close Brothers’ Adam Hammond. The team driving Kart #10, led by Close Brothers’ Andy Macaulay, would inherit third. Roundstone Vans’ team of Simpson, Simon Reed, George Zotaj and John Hills finished second in spite of the early collision for Simpson – one lap back from the winning RL Motor Services squad.
6. Saunders Abbott
176 laps
7. Close Brothers (Ellwood)
175 laps
8. SRK Specialist Cars
173 laps
9. Wheelbase 10. Winchester Motor Group
Dates and tracks TeamSport karting venues and dates: Round 1 – North
Leeds, October 24
Round 2 – South
Eastleigh, November 21
167 laps
Round 3 – East
Basildon, January 23, 2019
166 laps
Round 4 – West
Bristol, February 20
Final
Reading, March 28
Figures on the right indicate the number of laps completed in the 90 minutes of the race
event at karting@cardealermagazine.co.uk
CarDealerMag.co.uk | 19
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Behind the scenes REBECCA CHAPLIN
Blackball Media’s head of editorial is never afraid to tell it like it is
Making a list, checking it twice – yes, all this really did happen in 2018!
A
s years go, 2018 was full of surprises. Usually, I like to start the new year by looking ahead, but the past 12 months have been full of some real shockers that I couldn’t not acknowledge as we wave goodbye to the year that gave us another royal wedding, Gareth Southgate’s waistcoats and a Brexit deal – sort of. For the car trade, it’s been a particularly busy year. As 2018 comes to a close, I feel like I could be Alice sitting at the table as the Mad Hatter shouts, ‘Change places!’ The chopping and changing isn’t that unusual. Many dealers continued to change hands and we saw a lot of groups expand their footprint in used cars – with Penske kicking off the year with its takeover of The Car People. It was the supplier changes that have been more of a shocker. It’s always fun when a company is listed and therefore everything has to stay completely quiet until the moment that it’s announced. Next year will surely see a whole new generation of car classified websites, as we’ve got three new power couples on the scene. While Auto Trader and Cox Automotive won’t be collaborating on a consumer-facing product, the announcement of their joint venture with Dealer Auction has, on the whole, been greeted as a positive result for the industry. Meanwhile, Motors.co.uk has been bought from Cox Automotive by eBay. It wasn’t enough to have its own Motors arm and Gumtree; it’s now the triple threat, with Motors.co.uk’s great dealer offering. As I write this, there are a few days left of December, so there’s still time for Carwow to announce that it’s being bought by Topshop, as the latter decides to exploit its excess floor space by advertising cars, or maybe Exchange & Mart will buy Shpock, but the latest official announcement is that CarGurus is buying PistonHeads. It makes a lot of sense when you think about it – but it’s another one that surprised the motoring world. Who knew that the industry had such a suspicious underbelly, too? Or top-level, I suppose, from what’s come to light this year. It’s hard to believe that it’s three years since the whole dieselgate thing kicked off, but this year we saw the Audi chairman arrested for his alleged part in it. It was Carlos Ghosn who really stunned us all in the past few
weeks, though. ‘Le Cost Cutter’ didn’t heed his own words, it seems, and has allegedly been splashing Nissan’s cash on things he shouldn’t have. As someone who has become almost godlike in the industry for turning businesses from loss-making to profit – albeit in a very ruthless way – it’s actually not that surprising we didn’t see it coming. My prediction is this won’t be a flash-in-the-pan story and we’ll still be dealing with the ramifications years from now… We won’t dwell too much on the government because it always zigs when you expect it to zag, but of all the things it’s done, the one that makes the least sense is cutting the plug-in car grant. After all the confusion over fuel types, it decided to cut the main thing that was encouraging people to buy a hybrid. And then, after announcing it, the car market was stimulated (hurray!) so it ended the scheme even earlier. Shocked? Not so much. Severe eye rolls taking place in the office? Definitely. This list wouldn’t be complete without the announcement from Vauxhall that it would be terminating all of its contracts with dealers and losing 80 franchise points. We know it’s not an uncommon practice, but usually we don’t get invited to a conference call with all major media to hear it being announced by the MD. Was this the shocker of the year? Not really, as we’ve seen several Vauxhall franchises closing their doors or being sold on this year because they just weren’t working – but hopefully it’ll make an interesting turnaround. Not to dwell on the doom and gloom, but this year has certainly not been a good one for some manufacturers. Despite JLR’s ability to sell glitzy off-roaders to the masses, times continue to get worse as Brexit fears loom. It’s a geographical story, so I’m not surprised that the UK is being thrown into turmoil, but pre-Brexit, would anyone have believed that car plants on our fair isle would be looking to bail out to somewhere else in Europe? Careful plant closures are planned, people are being made redundant and let’s not even mention all of the brands that have announced profits falling. What can we predict for 2019 though? I can certainly say we’ll know if Ghosn is to be found guilty. The Competition and Markets Authority will announce if the eBay and Motors.co.uk deal can go through. We’ll also see if we’re really leaving the EU in March. My one big prediction for next year, though, is that we’ll be seeing more consumers choose a lease deal – because we still want an affordable new car with less risk. Until then, we can only hope that consumers keep buying cars, be they new or old, and maybe we can have a 12-month spell that’s a little bit calmer on all fronts.
‘There’s still time for Carwow to announce it’s being bought by Topshop.’
Rebecca Chaplin is head of editorial at Blackball Media and the editor of Car Dealer Magazine. CarDealerMag.co.uk | 21
22 | CarDealerMag.co.uk
Big Mike Our man on the inside shares his thoughts on the car business
I might be old and fat but I’ve moved with the times – and here’s why
M
y career in the motor trade has given me all sorts of ups and downs – it’s something I’m sure everyone who reads this fine magazine can attest to. Recently, though, I had somebody ask me ‘Where did it all go wrong?’, on the basis that I’m currently running my business from a Portakabin on the industrial wastelands of the West Midlands with nothing but 40 cars’ worth of hard standing, a bit of bunting and some brightly coloured signs to mark my presence. It’s a far cry from a main dealership gin palace, that I admit. However, I’m the happiest (and probably the wealthiest) I’ve ever been – and there’s a reason for this. In the past couple of years, I’ve adjusted my business model, because despite being old and fat, I’ve moved with the times. I may still have trouble operating a smartphone and I get my stepson to ‘do all the internet’ for me (ever since my erstwhile apprentice, Jason, went for a short holiday in the big house, but that’s a story for another time), but I recognise market trends as shrewdly as I always have. When I first starting writing this column over a decade ago, I was specialising in cars priced between £3,000 and £8,000 – the usual fare that would come through the auction via main dealer part-exchanges, which were too old or low in value to polish up and punt out with a dealer-approved eleventybillion point check. These were cars between three and 10 years old, mostly sensible mileage, mostly well maintained and mostly easy to sell. But a couple of years ago, the earth shifted. Car buyers became trapped in endless PCP cycles. The allure of the dealership gin palace, some paint protection products and some free carpet mats was too much for most of them, especially when £200 down and the same amount a month would put you behind the wheel of a shiny new motor. I’m sure it’s how a lot of you make your money, and I fully understand it. A lot of people are extremely risk-averse, after all, and long warranties and the perceived reliability of a new car is often enough to seal the deal, especially when you can lure them in with that ‘new car’ smell, which is far better than a decade’s worth of fag smoke masked by a ‘Mr Smiley’ vanilla air freshener, even I admit. All of which has made the middle ground
a bit tricky. When it’s cheaper to buy a new car than a used one, at least in the short term, it makes late-model used cars a tough battleground – again, something a lot of you readers will know from first-hand experience. When the finance on offer from the manufacturer’s chosen lending house comes in at 0% APR, it’s even harder to compete – the only buyers that will take out credit are those who can’t afford it, so they take a punt with the Kneecap Loan Company Ltd and pay astronomical interest rates (the commission’s bloody brilliant, mind…). With all this going on in the bigger and wider world, I’ve taken what many people would consider a step backwards. My bread and butter these days is pretty much bangers – most of my stock costs less than £3k, and that’s to the buyer, not me. I rarely buy in anything for more than £1,500, but it’s all flying out the door. The reason being, you’ll never struggle to sell a cheap car. From the less well-off, who can’t afford more than a grand, to those looking for a stopgap, to those who are simply savvy enough to know that you really, genuinely don’t need to spend more than a couple of grand to get a car that’s clean, tidy and dependable, they are – by and large – easy people to deal with. Sure, you get the odd Vicky Pollard wandering on to the lot expecting the moon on a stick (with a new MOT while you’re at it), but a lot of my customers are high-net-worth individuals who simply don’t see the point in splurging thousands of pounds on something that, to them, is simply a means of transport. The richest people I know all drive bangers, and there’s a reason for that. You also get some pretty entertaining stock. For the past three weeks, I’ve been bombing around in a 1.1-litre Fiat Seicento that I took in part-ex and it’s a real hoot. Before that, I was in a BMW 520d with astronomical miles on it and some rather unnerving clonking noises from the rear suspension, which I ran until the MOT ran out and sold to my local specialist BMW breaker for more than its stand-in value. While a significant chunk of Britain’s car-buying public may be getting suckered into finance-for-life thanks to their local main dealership, there’s a lot of life (and money) in cheap but clean older cars. And that, folks, is a case of me moving forwards, not backwards. As my old mate Bob Dylan once said, the times they are a-changin’…
‘My bread and butter these days is pretty much bangers – most of my stock costs less than £3k, and that’s to the buyer, not me.’
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 | 23
Feedback. Your comments via email to dave@blackballmedia.co.uk
Our website at CarDealerMag.co.uk
When to apply the ancient art of haggling WE DON’T like to haggle and we try not to. But every now and then in this job the old haggling craft needs to be applied. What is your approach? l When buying I will praise a car rather than point out every little mark. When the buyer eventually (I do take my time) warms to me, I will tell them all the little minor things I would want to improve to ‘add’ to the meticulous care the car has received by its owner, and will make an offer that will allow me to do all that and still earn from the deal. I make a cash deposit immediately followed by a transfer of the full balance. One of the reviews on my website actually says, ‘When he buys, he pays.’ l Here’s my approach when selling. I will not talk money over the phone or in an email. I avoid talking money during the test drive or when they stand by the car before or after that. I always like to sit the customer in my office and slow the deal down a bit. Coffees, teas, service history files, spec checks, my life story, their life story, anything to keep my buyer in their chair for a bit longer and make them forget the previous car
they’ve looked at and especially the one they were planning to look at next. Lots of jokes and lots of humour will only be interrupted by an expressionless look if they say something like, ‘Come on, what’s another £200 to you?’ When that question comes I have a big screen calculator and will multiply the £200 or £100 or whatever by 150 cars a year and show them the £30,000 on the screen, explaining as politely as I can that I simply cannot take that £30k out of the business just like that and it usually works. Nick M.K. I forget who it was on another forum who said a customer asked for a discount. The dealer said, ‘Spell discount.’ The customer did so: ‘D-i-s-c-o-u-n-t.’ Dealer: ‘You missed out the F.’ The customer replied: ‘There’s no F in discount.’ Which is absolutely correct. David Ayers Many people often talk about providing a nonpushy, no-pressure selling environment. I basically
take that to the extreme. I introduce myself, hand the customer the keys to the car, and then ask them to peruse at their own leisure and if they need me I will be in the office (nothing different there, you might say). Inevitably, they do come into the office, if only to hand the keys back and/or ask the obligatory question – how much for cash, you can write back your invoice value, etc. My reply is universal – I never discount my cars because every car comes with a new MOT (no advisories), a fresh service (due or not), PDI and warranty (one that actually does cover you). I say, ‘If you’re unsure about the car, I suggest you go and have a look at some others, sleep on it, I am not in a hurry to sell’, etc. Putting the process in writing doesn’t really translate, but I guess I can’t be the only person who walks into a shop, store or showroom and hates being badgered by an irritating, obviously target-driven sales rep. I try to be the polar opposite of that. Mark 101
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Leave EVs alone for now! I’M new to selling used cars and to this forum. I’d appreciate a little advice on something. The first car I am buying is a Nissan Leaf. It’s just under three years old and I have bumped into something I hadn’t thought of – the service is due on it in 20 days at a cost of £149+ from the local Nissan dealer. So, do I get the service done at my expense or not? ROVEX
Who doesn’t love a nice Christmas jumper as the festive season approaches? We’re certainly fans of the seasonal sweater here at Car Dealer Towers. Staff writer Tom Wiltshire, however, takes things to extremes. He was pictured in this Yuletide number on November 22 – November 22, we tell you! He’s probably doing an Easter egg hunt as you read this...
Do it at Nissan as the car will be under warranty. Any major problems will be fixed and the manufacturer will pay. £149 is a small price to pay under those circumstances. I would also advise you to NOT start in used car sales with newish, high-value electric cars. Buy four Micras instead. Nick M.K. That’s a fair price to have the car serviced by the dealer, and also a big plus when composing your ad text. As it’s due so soon, just get it done now so any prospective buyer can drive it away on the day, rather than faffing about with post-sale prep. Best of luck! JimmyGlen
Top Used Car Awards tweets An amazing evening at the Used Car Awards where we sponsored the Rising Star Award! Fantastic atmosphere! Congratulations to Joshua Scaife from Yorkshire Vehicle Solutions, here’s to a great year! Lindsey Voong @Progress_LV The cream of the automotive world descended on central London’s The Brewery for the annual Used Car Awards and it was a pleasure to be there to witness #TargaFlorio Cars win the ‘Dealer Used Car Website of the Year’ category. 67 Degrees @67degreesuk We are proud to work with many of the big #winners from the @CarDealerMag #UCAwards. Huge congratulations to everyone who took home an award. AA Cars @TheAACars Amazing to see so many of our dealers winning awards #UCAwards @CarDealerMag Click Dealer @p
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23/11/2018 09:41
Dashboard. Around the world Dealer news from somewhere other than here
IRELAND
SUZUKI Ireland recently announced the winners of this year’s Dealer of the Year awards. Mongey Plunkett Motors from North Road in Finglas, Dublin, collected the Sales Dealer of the Year accolade thanks to their team’s exceptional retail performance during the past 12 months. Cassidy Motors, a family-run business in County Mayo, based in both Charlestown, and more recently Ballina, received two trophies. They were presented with the Aftersales Dealer of the Year and the Best Aftersales Customer Experience prizes.
AMERICA
AN Illinois dealership has been hit by two disasters in two years. In August 2017, a big fire tore through Country Classic Cars’ premises between St Louis and Springfield – and on December 1 this year, it was hit by a barrage of tornados. Almost 147 cars were damaged or completely wrecked in the two incidents. Owner Russ Noel told the website Autoclassics: ‘The good thing is, nobody got hurt.’
UNITED ARAB EMIRATES
ASTON Martin Lagonda celebrated the opening of a new flagship dealership in Abu Dhabi in the presence of United Arab Emirates president Sheikh Khalifa. Guests mingled with senior personnel from Aston Martin at the swish reception. Aston Martin Abu Dhabi is in a prime location in the prestigious Etihad Towers, overlooking the Emirates Palace.
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AUSTRALIA
INDIA
HONDA Cars India has introduced a ‘Talking Car’ app at its dealerships, reports the website Zigwheels. com. The app will explain various features of cars to potential purchasers, ensuring a more engaging and information-laden test drive. It runs through a smartphone paired to the car’s infotainment system, enabling the vehicle to ‘talk’ via its speakers. Honda’s Rajesh Goel explained: ‘The Talking Car concept is part of the digitisation efforts we are making at our dealerships which will offer a differentiated and user-friendly experience to our customers.’
TOUGH new laws are being introduced in Queensland to crack down on ‘lemon-selling’ car dealers – and the state government is pushing for the new legislation to be introduced nationally, according to reports. In future, dealers who sell new cars with serious or multiple faults could be forced to refund unhappy buyers or replace faulty vehicles, says the website nine.com.
2018 Car Buying Stats & Trends From
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contactus@codeweavers.net
Finance. VOLUNTEERING
Close Brothers staff give gift of hundreds of hours C lose Brothers Motor Finance employees volunteered 818 hours of their time for charity initiatives in October – the company’s volunteer month. In a bid to beat its 2017 Gift of Time volunteering record of 563 hours, the business set each team the target of 30 hours of volunteering. This coincided with the company’s 30th birthday, which employees celebrated this year. Close Brothers’ network of dealer partners got involved in the charitable efforts, with the regional branches leading the charge on many events. Employees across the UK completed a huge variety of voluntary activities, including spending time with elderly people, cleaning beaches and taking part in Big Sleep-Outs with homeless people in Peterborough and Wales, as well as helping at hospices, animal shelters and nature reserves. In total, the teams collectively completed 34 days’ worth of volunteering throughout the Gift of Time initiative. It hasn’t stopped there, though, as teams are continuing to volunteer
Sevenoaks branch administrator Emma Scutchings and account manager Ian Brown take part in a clean-up of Eastbourne beach for the initiative with their local communities throughout the year. Rebecca McNeil, the chief executive of Close Brothers Motor Finance, said: ‘Our ethos is all about people and the personal service we offer to our dealers across the UK.
‘To see this ethos reflected by our staff in their local communities is wonderful, and demonstrates their commitment to supporting those in need. ‘I look forward to seeing which records we can beat next year.’
PARAGON
Hire and lease purchase new business grows to £178m COMMERCIAL lending at Paragon has led profit growth for the banking group over the past year, annual results revealed. The commercial lending division, which includes motor finance, reported the largest increase in profits across the group – a 41 per cent rise to £20 million compared with the same period last year. The motor finance business saw strong growth in 2018. Operating in the hire and lease purchase segments, C
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new business grew by 48 per cent to £178 million. The business addresses specialist propositions in the motor finance market and includes funding for less mainstream vehicle types, such as light commercial vehicles and motorhomes. Overall, underlying profits for Paragon Banking Group grew by eight per cent to £157 million for the 12 months to September 30, 2018. Before acquisitions, underlying growth across Paragon’s commercial
lending products grew by 45 per cent in 2018, with investments and infrastructure previously established underpinning further expansion in new business flows. Richard Doe, managing director of commercial lending at Paragon, said: ‘Strong growth in lending, particularly to small and medium-sized UK businesses, reflects our commitment to improving access to funding for British companies to help them achieve their financial ambitions.’
RESEARCH
Popularity of deals ‘hitting ownership’
THE increasing popularity of car finance deals is contributing to the decline of long-term car ownership, according to research from AA Cars. The number of drivers who plan to hang on to their current car for more than five years has dropped by 11 per cent since owning their last car. This means there are around 3.4 million fewer drivers who have longterm intentions for their current vehicle. The AA-Populus poll of 20,666 drivers found that nearly a fifth (18 per cent) of cars on the road are currently funded using various forms of car finance, such as personal contract purchase (PCP) or hire purchase (HP) plans – which equates to around 700,000 more cars funded using these deals since drivers last bought a car. Those who used one of these routes to buy their current car are much less likely to hold onto their car in the long term – only a quarter (27 per cent) of drivers using one of these finance options plan to keep their car for more than five years. Four in 10 (39 per cent) intend to hold onto their car for less than three years.
IN ASSOCIATION WITH
Time is money BEN GARSIDE
A monthly look at the world of automotive finance and marketing
Running on autopilot? Then it’s time to get back in the groove and improve
W
e’ve all heard the saying, ‘It’s never too late to learn.’ I’ve definitely said it a few times, and those of you who are connected to me on LinkedIn may have seen that I have just started a new qualification to further improve my digital marketing knowledge. I’ve also started learning another new skill, but I’ll talk about that in the next issue. A few people have questioned my need to take on further learning in digital marketing, stating that my experience is enough. Most of these connections know that I’ve been involved in digital marketing for about 19 years. To be honest, when I started, I knew nothing. I was a young events promoter and I had a website built by a friend. I marketed my events and the website via chat forums, networking and increasing a following. That was very successful, but mainly because of my enthusiasm and luck, not skill and knowledge. Since then, however, I have seen a lot of change in the digital marketing arena and have experienced a large proportion of it, as I always like to get involved in the work and changes that are happening. So maybe they are correct in that I do have the experience. However, there is nothing quite like getting your head back into a textbook or having a tutor reminding you that you’ve got a little lost in the moment and become a bit slack in the correct methods. I believe that when you’ve been doing something for as long as most of us have, we tend to just do it, usually without thinking. But when you pick up a book and start studying again, you remember
that you’re meant to do it a different way, the right way and the most effective way! I believe it’s just like being a driver for 20 years and then having a driving lesson – you know you’re doing it daily but the instructor is going to find something to give you feedback on. I’ve actually put this theory to a very close friend of mine and he said that if he took his test now, he wouldn’t pass. This is because he has been driving his own way for the past 15 years, doing things incorrectly and not how he was taught – for example, coming off a roundabout without signalling. Knowing that I’d let myself slip slightly, I’ve now started my lifelong journey of becoming a Chartered Marketer. I’m a little over a month into this degree-level diploma but I’ve already picked up a wealth of new knowledge and reminded myself of some great tools to use in my work that I’d used previously. I also feel more focused and switched back on to the correct strategy and planning processes, while refocusing my attention on the customer. I’m looking to keep it for life, which means I’m required to continually develop and submit documentation and proof of my learning and implementation every year and forever. I’ve not done it for work, a pay rise or another job; I’ve done it to be the best version of myself and the best leader for my team. So, are you thinking, ‘I don’t indicate’ or ‘I could be better at x’? If you are, book some driving lessons or a development course. The motor trade usually slows in December, so maybe that’s the perfect chance for you to reflect on 2018 and start planning your personal and development goals for 2019 and beyond.
‘It’s like being a driver for 20 years then having a lesson – the instructor will give you feedback on something.’
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 | 29
Dealfinder.
Finance. YOUR ESSENTIAL GUIDE TO SEVEN-SEAT SUVS
VW Tiguan Allspace
Hyundai Santa Fe HYUNDAI’S largest SUV has gone upmarket for its latest generation, with the manufacturer adding a host of safety kit and tech to its range-topping model. Just one engine is available – a 197bhp 2.2-litre diesel, which we’ve paired with a new eight-speed automatic transmission and additional four-wheel-drive to help through the winter months. Mid-spec Premium is our choice, with goodies such as an electric driver’s seat, hands-free opening boot and LED headlights. Hyundai adds £2,000 to the customer deposit of £6,000. This is followed by 36 monthly payments of £596.20, which at the end of the three-year contract brings the total to £27,463.20. If the customer decides to buy the car, an optional £15,660 needs to be paid, bringing the total amount from the customer to £43,123.20 – £2,328.20 more than the list price.
THE Volkswagen Tiguan is one of the UK’s best-selling crossovers, and VW has unsurprisingly decided to jump on this popularity by launching a seven-seat version of its mid-size SUV. We’ve opted for the popular 187bhp 2.0-litre diesel unit paired with a seven-speed DSG automatic gearbox and 4Motion allwheel-drive technology, in SEL trim, which features LED lights, an electric boot and satellite navigation. A customer deposit of £5,500 is boosted by a Volkswagen contribution of £2,500. This is followed by 35 instalments of £495.01 – meaning that at the end of the three-year contract the customer will have spent £22,825.35. If they choose to buy their Tiguan, a final sum of £16,916.40 is needed. This, plus a £10 fee, brings the total payable by the customer to £39,751.75 – £1,451.75 more than the cash price.
TERMINOLOGY CONFUSION
PCP? Yes, that’s a sexually transmitted disease, isn’t it...? N ew research by a leading car finance company has revealed that Brits are getting confused when it comes to terminology surrounding car buying. More than one-third think ‘balloon payment’ is a made-up term, and one in nine thinks that PCP is a type of sexually transmitted disease. Brits on the whole are unfamiliar with the terms involved in buying a car on finance, according to the study by Admiral Car Finance. After being presented with jargon relating to car finance, just one in 10 was able to correctly identify all of the terms, while nobody could name them all. Almost 2,500 people were polled and the participants, who were unaware of the purpose of C
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by JOHN BOWMAN john@blackballmedia.co.uk
the study, were asked to choose the best definition for a number of terms with three options. The first car finance term respondents were presented with was HP, which just under one-third (32 per cent) were able to correctly identify as hire purchase. As many as 23 per cent incorrectly identified PCH as a hallucinogenic drug, while 42 per cent thought it meant private car hire. Just 20 per cent correctly identified it as personal contract hire, and the rest thought it was a made-up term. When presented with the term ‘balloon payment’, 34 per cent stated that they thought it
was made up, while nine per cent believed it was the term used when hiring a clown. Just 27 per cent were able to correctly identify that the phrase refers to the final lump sum paid at the end of a contract. Some of the other most commonly misinterpreted phrases relating to buying a car on finance and what Brits believed they meant were: l MSRP (manufacturer’s suggested retail price) – a food additive (32 per cent); l GFV (guaranteed future value) – gluten-free vegans (23 per cent); l PCP (personal contract purchase) – a sexually transmitted disease (11 per cent); l APR (annual percentage rate) – London-based football club (six per cent). The team also took to the streets to create a video of members of the public answering car finance-related questions.
IN ASSOCIATION WITH
Mitsubishi Shogun Sport THE Shogun Sport is the latest Mitsubishi to come to the market and is essentially a Mitsubishi L200 pick-up underneath. It’s far more rugged than the other two seven-seaters here but is for those who will probably take their cars off road, rather than just have the ambition to. It also has an impressive towing capacity. It comes with a 2.0-litre diesel unit delivering 179bhp, and we’ve chosen a ‘3’ trim, with leather seats, a reversing camera and keyless entry and start. Mitsubishi is offering a deposit contribution of £2,000, to which the customer adds £5,450. This is followed by 36 monthly payments of £527.77, bringing the total to £24,449.72. An optional final payment of £15,407, as well as a £10 purchase fee, can then be made if the customer decides to buy their Shogun Sport. This brings the total amount payable by the customer to £39,866.72 – just over £2,000 more than the £37,775 cash price.
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RELOCATION
Startline looking to end 2018 with business volumes up by a fifth
Bigger offices for iVendi as staffing drive continues
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STARTLINE Motor Finance is to end 2018 with business volumes up by around 20 per cent on the previous year, it reports. It will also have seen turnover increase by around a quarter, said chief executive Paul Burgess, pictured. ‘This has been a very good year for us. We have attracted a number of significant new customers, ranging from major dealer groups to specialist online providers, and have also created much higher levels of business through existing relationships. ‘This success has been driven by greater penetration in the market for our flexible motor finance concept and especially by the launch of our PCP product,’ he said.
IVENDI has moved its software development team to new offices in Manchester with three times the space of its previous building. The new premises, in Clippers Quay, cover 6,400 square feet and will initially house around 45 staff – a number that has grown from 25 since the start of the year. The space has been designed to be as flexible and productive as possible, with meeting pods, couches, a large kitchen and canteen, plus giant touchscreens. Chief executive James Tew said: ‘These people need the right kind of environment in which to do their best work and the new offices provide just that. As a business, we continue to grow at an impressive pace and this move should see us through our next phase of expansion.’ The finance specialist’s HQ will continue to be in Colwyn Bay, where there are a further 40 staff.
CarDealerMag.co.uk | 31
Forecourt. FIRST DRIVE
Alfa Romeo Stelvio QV THE KNOWLEDGE
The Stelvio Quadrifoglio is the first performance SUV to come from Alfa Romeo. Jack Evans headed to Scotland to see what it’s like. What is it? This range-topping SUV from Alfa Romeo is designed to take on rivals such as Porsche and Mercedes at the performance four-wheel-drive game.
What’s new? Alfa has fitted the Quadrifoglio (or QV, for short) with its Q4 all-wheeldrive system, which transfers 100 per cent of torque to the rear wheels during regular conditions. If it senses the car’s limitations are being approached, it can transfer 50 per cent of that power to the front axle to aid with traction. This is helped further by the inclusion of Alfa’s chassis domain control and active torque vectoring, both of which give the car as much grip as possible through corners.
What’s under the bonnet? The Stelvio QV makes use of a 2.9-litre bi-turbo V6 engine producing 503bhp and 600Nm of torque. It’s the same unit as the one you’ll find in the Giulia QV saloon. Power is sent to all four wheels via an eight-speed automatic transmission, and you get adjustable dampers, too.
What’s it like to drive? Start off slowly in the Stelvio QV and there’s little to tell you that this is a performance SUV. It’s relatively 32 | CarDealerMag.co.uk
quiet, and the V6 under the bonnet makes little of its presence felt. Press on, however, and it soon becomes clear that this is no ‘ordinary’ four-wheel drive. That engine is impressively flexible. Gearshifts are fast and immediate, and the whip-crack action of the beautifully engineered one-piece aluminium paddle shifters is a delight each and every time. It’s only let down a little by the ride. In regular modes there’s a decent amount of pliancy but this is counteracted by a little too much roll. The steering is the stand-out star of the show, though – direct, quick and full of life.
How does it look? We’d argue that the Stelvio is one of the best-looking ‘regular’ SUVs on sale today – and the added QV treatment only works to enhance these excellent visuals. Flared wheel arches, huge 20-inch alloy wheels and a variety of air inlets give the car a lot of presence. The rear is nearly as strong as the in-your-face front end in terms of design, with four aggressive exhaust pipes poking out from either side of a diffuser section.
What’s it like inside? The carbon-shell sports seats fitted to our test car looked beautiful
and were immensely supportive – but then you’d want them to be, considering they’re £3,250 extra. The leather steering wheel feels good in the hands and the stitching on the dashboard is impeccably neat. It’s just a shame that this is contrasted by hard plastics surrounding the switchgear, while the gearstick itself feels flimsy and has sharp edges along the back of it.
What’s the spec like? Standard equipment levels on the Stelvio are, as you’d expect for a range-topping car, good. Features such as dual-zone climate control and bi-xenon headlights come as part of the overall price, along with a full sports exhaust system and a complete sports bodykit. There’s also Alfa’s standard-fit 8.8-inch infotainment system, but although it’s relatively clear, it’s lagging some way behind rival offerings in terms of usability. Even zooming in and out of the satellite navigation is a hassle.
What do the press think? Autocar said: ‘This is comfortably the most engaging performance SUV money can buy.’ Top Gear said: ‘You drive the Quadrifoglio and it wins you over with sheer charisma. Daft, lovable, roguish thing.’
Model as tested: Alfa Romeo Stelvio QV Price: £79,880 Engine: 2.9-litre bi-turbo V6 Power: 503bhp Torque: 600Nm Max speed: 176mph 0-60mph: 3.6 seconds MPG: 24.0 Emissions (g/km): 227 TARGET BUYERS: Those who want plenty of performance from their medium SUV. THE RIVALS: Porsche Macan Turbo, BMW X4 M40i, Mercedes GLC63. KEY SELLING POINTS: 1. Characterful engine. 2. Direct steering. 3. Good looks. DEAL CLINCHER: The Stelvio QV makes a solid case for itself both in terms of looks and performance.
What do we think? This is easily one of the most dynamic performance SUVs on sale. Sharp handling, a wonderfully responsive engine and a razor-sharp gearbox combine with excellent balance to help make it an exciting drive, with only a rather harsh ride in firmer settings spoiling the overall effect. The cabin quality lets it down somewhat, but if you’re after a performance SUV, we’d recommend looking in this direction.
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www.blueskyinteractive.co.uk CarDealerMag.co.uk | 33
Forecourt.
FIRST DRIVE
THE KNOWLEDGE
Kia e-Niro Dave Brown headed out to Seoul to find out what Kia’s new all-electric e-Niro is like on the roads of South Korea. What is it? Think of electric car ownership and you might first of all consider the clever tech that powers EVs before turning your mind to the ‘range anxiety’ we’ve all read so much about. That’s about to change, thanks to the South Korean pairing of Kia and Hyundai, both of whom have been busy developing models that offer 300-odd miles of emissionfree electric motoring. The e-Niro, a compact crossover, is Kia’s offering.
What’s new? Is the e-Niro a completely new car? It’s similar in some ways to its siblings but its next-generation electric powertrain really is something for Kia to shout about – the official ‘combined cycle’ figure of 282 miles on a single charge is pretty impressive. (Kia had claimed a figure of 301 miles but that number was reduced after ‘incorrect testing methodology’ was used. The manufacturer wasn’t to blame for that, we hasten to add.)
What’s under the bonnet? The e-Niro is equipped with a highcapacity 64kWh lithium-ion polymer battery pack. While it can deliver a driving range of 282 miles on the combined cycle, on the urban cycle that figure rises to a hefty 382 miles. The battery pack is paired with a 201bhp (150kW) motor, producing 395Nm of torque. Like the Niro 34 | CarDealerMag.co.uk
Hybrid and Plug-in Hybrid variants, the new EV is front-wheel drive. Regenerative braking technology allows the e-Niro to harvest kinetic energy and recharge the battery pack while coasting or braking, while the Eco Driving Assist System (Eco DAS) provides the driver with guidance on how to drive more efficiently. The e-Niro can be recharged to 80 per cent battery life in just 54 minutes using a 100kW charger, while with a 50kW charger the battery can be replenished to 80 per cent in 75 minutes
What’s it like to drive? Driving the e-Niro is a pleasure. Our test route took us on rural backroads, modern highways plus everything in between and the car handled it all with poise and precision. Overtaking is straightforward, thanks to the instantaneous delivery of bags of torque when you put your foot down, while visibility is good. What helps the e-Niro feel particularly sure-footed is its low centre of gravity – and that’s largely because of its chunky battery pack.
How does it look? At the front, its closed ‘tiger-nose’ grille design features an integrated charging port, while redesigned air intakes and new arrowheadshaped LED daytime running lights combine with blue trim highlights to help the car stand out.
Kia e-Niro £32,995 (after £3,500 government grant) Engine: Permanent magnet AC synchronous type 64kWh electric motor Power (bhp): 201 Torque (Nm): 395 Max speed (mph): 104 0-60mph: 7.5 seconds Range: 282 miles Emissions (g/km): 0 Model: Price (as tested):
At the back, a redesigned rear bumper features similar blue trim highlights. The car is available in five paint colours, including Pluto Brown – a shade unique to the e-Niro.
What’s it like inside?
TARGET BUYERS: Eco-minded families. THE RIVALS: Hyundai Kona EV, Nissan Leaf, Renault Zoe.
The design of the centre console is one of the most interesting features, with the all-electric powertrain not requiring a traditional gear lever and gear linkage. The physical transmission has been replaced with a rotating drive selector, while the dashboard features bright blue trim around the air vents, echoing the trim found on the outside. The 8.0-inch touchscreen HMI (human-machine interface) in the centre of the dashboard offers a series of features specific to Kia’s new electric vehicle. Most importantly, it enables owners to locate nearby charging points and monitor the level of remaining charge and range.
windows and tailgate deliver an upmarket appearance. Convenience features include rear parking sensors and a reversing camera system, electric windows all round, an auto-dimming rear-view mirror and an engine start/stop button plus a Smart Entry System.
What’s the spec like?
What do the press think?
Kia is keeping things simple when it comes to marketing the e-Niro in the UK. Only one variant of the car will be arriving on these shores – a ‘First Edition’ model that it hopes will satisfy everyone. The exterior design features halogen headlights with Bi-Function projection, front fog lights, LED daytime running lights and LED rear combination clusters. Privacy glass for the rear
Autocar said: ‘Kia could have a surprise hit on its hands.’ What Car? commented: ‘The e-Niro is a very quick car – almost shockingly so.’
KEY SELLING POINTS: 1. Futuristic design. 2. Clean, emission-free motoring. 3. Life is made easy for buyers with a single high-spec model. DEAL CLINCHER: Impressive 282-mile range.
What do we think? We think the e-Niro will be a big hit for Kia – it’s stylish, feels poised yet powerful, and delivers a winning combination of crossover capabilities with emission-free motoring.
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CarDealerMag.co.uk | 35
Used Car Awards 2018
Everyone’s a winner on a top night of celebrations!
THE Used Car Awards night is the party that kicks off the Christmas season, and every year we celebrate the best of the best in what many regard as the backbone of the automotive industry. From the smallest dealers to the largest, the best used cars to the top websites – the Used Car Awards recognise those who are doing great things in a very important part of UK Automotive plc. Every year, a staggering eight million used cars change hands – and with the new car market catching a cold in 2018, many dealers are saying their used car operations are vital to profitability. There’s no doubt times are tough out there.
Brexit uncertainty is shrouding the industry in a fog of discontent and what with the unhelpful anti-diesel rhetoric from the government, it’s no surprise consumers are holding on to their cash. Despite these problems, however, used car businesses continue to thrive. According to the latest figures from the SMMT, more than six million used cars had changed hands by the end of the third quarter. It’s a figure that’s marginally down on 2017, but the drop is nowhere near as big as that seen in the new car market. This year we had more entries than ever before – and those who put themselves forward took
FIVE STEPS TO AWARD HEAVEN
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Throughout the year, we receive hundreds of nominations from dealers and their business partners and customers from across the UK
Each entry comes under scrutiny and our first task is to eliminate those dealers who don’t come up to scratch in our first round of mystery shopping
the judging extremely seriously, too. Our mystery shoppers were genuinely impressed with the service they received from our winners, and our judging panel had incredibly tough decisions to make. So congratulations to everyone who made it on to our shortlists, those who were highly commended and our overall winners – you’ve achieved something incredible, so you should feel very proud indeed. I also want to express my appreciation to a few people without whom it wouldn’t be possible to stage the Used Car Awards. Thank you to all our individual category award
sponsors, our headline sponsor Black Horse and the RAC, which kindly hosted the VIP drinks reception before the ceremony. Thanks also to Shpock Motors for sponsoring our fun casino and Codeweavers for hosting our fantastic after-party at the Amber Bar. We’re incredibly grateful for your support – and here’s to another great awards night in 2019!
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After more exhaustive phoning, emailing and visiting dealerships, we work out our shortlist in each category – lists of five potential winners
James Baggott Founder, Car Dealer Magazine
These lists are published online in advance of the Used Car Awards before the nominees go forward to the big night itself
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At the awards ceremony, Mike Brewer announces the winner and two highly commended winners in each category CarDealerMag.co.uk | 37
Dealers are
to get a lead when they have an iVendi eligibility checking solution on their website
The number of ďŹ nance leads from your website without eligibility checking
The number of ďŹ nance leads from your website with eligibility checking
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38 | CarDealerMag.co.uk
Social Media User of the Year Sponsored by iVendi Presented by Russell White, head of sales operations
From left to right are Russell White of iVendi, Tom Jaconelli of Romans International and Used Car Awards host Mike Brewer
Winner: Romans International Highly commended: Imperial Cars & Marshall Motor Group INSTAGRAM, Facebook, Twitter... social media is a fantastic way to reach new and existing customers. It’s a constantly changing arena, and the dealerships that use it best are those who are proactive and cover several platforms. With the number of social media websites and apps increasing all the time, this is a category that becomes more difficult to judge as the years roll by, but this year’s finalists have really made every post shine during 2018. Our two highly commended winners in this category were revealed to be Imperial Cars and Marshall Motor Group. Mike congratulated both companies and we’ll make sure they receive their certificates very soon. But our winner is
a company that has an incredible presence on social media, posting amazing content that generates interest and leads every day. The first trophy of the night to be presented went to Romans International! Director Tom Jaconelli is the man credited with pioneering the company’s use of social media and focus on digital marketing. Just after picking up the trophy from Mike Brewer, he told us: ‘We’re delighted to win this award – we’re chuffed. ‘Social media is a massive part of our operation. When I arrived in 2011, it was something I took over. We’ve now got a team of people working really hard on it every day and it’s become our biggest form of marketing.’
Great company, great conversation and a great night all round at The Brewery!
Brewer’s verdict: Social media is incredibly important to used car dealers these days. It’s a great way to boost business, build rapport and have a bit of fun! Well done to Romans – they’ve got it nailed. CarDealerMag.co.uk | 39
40 | CarDealerMag.co.uk
Dealers’ Dealer of the Year Sponsored by the IMDA Presented by David Bilsborough, vice chairman and treasurer
From the left are David Bilsborough, Will Blackshaw and Mike Brewer
Winner: Will Blackshaw – Blackshaws
Highly commended: Rory Anderson – RS Car Sales & Jane Sibley – Redgate Lodge THE award for Dealers’ Dealer is one of the most coveted of the night. It’s a prize that means your fellow car dealers have the utmost respect and affection for you. Mike first revealed the two highly commended winners in this category: Rory Anderson from RS Car Sales, Cheshire and Jane Sibley from Redgate Lodge, Newcastle upon Tyne. Many congratulations to you both! Like Rory and Jane, our winner was given some incredible feedback from his peers in the industry and is clearly both popular and highly respected. Guests at The Brewery were asked to put their hands together for Will Blackshaw, managing director of Blackshaws, Northumberland.
Speaking to Car Dealer after receiving his trophy from Mike Brewer, Will said: ‘I’m actually quite shocked! ‘I genuinely didn’t expect to win. It’s an absolute privilege to have been named Dealers’ Dealer of the Year. It means a lot. Without the team back at base, I wouldn’t be here tonight. I’m very pleased to be able to take time out from the business and know things will run smoothly.’ Asked if he was enjoying his evening at the Used Car Awards, Will said: ‘The event is fantastic and it’s great to catch up with my friends in the industry. It’s a tough industry and getting tougher year by year so it’s important we look out for each other and spend time with each other.’
Rory Anderson and Jane Sibley were delighted to be highly commended
Brewer’s verdict: There’s nothing nicer than having the respect of your peers and I’m chuffed to bits for Will. If he ever leaves Blackshaws, I’ll try to find him a role at Mike Brewer Motors! CarDealerMag.co.uk | 41
42 | CarDealerMag.co.uk
Service & Repair Outlet of the Year Sponsored by eDynamix Presented by Iain Nickalls, director
From left to right are Iain Nickalls of eDynamix, Steve and Zandra Tallett of Crescent Motoring Services, and Mike Brewer
Winner: Crescent Motoring Services Highly commended: ACC UK Ltd & Springfield Autocare & Car Sales IF it wasn’t for workshops, the whole industry would fall apart. Every ding and dent, MOT and service, breakdown and repair needs the attention of talented mechanics. In this category, the judges were looking for companies who are reliable, have a high standing in the community and deliver the best levels of customer service. Our highly commended winners were ACC UK Ltd and Springfield Autocare and Car Sales and it was great that representatives of both companies were present at the awards and able to collect their certificates in person. But our winner, Crescent Motoring Services of Burton-on-Trent, is a service and repair
business that has happy punters shouting from the rooftops. Our mystery shoppers found their service professional and to the highest standard, living up to the pledge on its website that the business offers honest and reliable service with outstanding customer service skills. Steve Tallett, managing director, said it felt ‘fantastic’ to be a winner and added: ‘It was unexpected and it’s a lovely feeling. ‘We do work very hard on the customer service side and we are delighted to be picking up our second Used Car Award. ‘We have a good team in the business, we have family involved in the company and a good reliable workforce.’
ACC UK Ltd, above, and Springfield Autocare and Car Sales were delighted to be honoured with ‘highly commended’ certificates
Brewer’s verdict: A good workshop is a great asset to the community it serves – and I know Crescent Motoring Services is really well regarded in its local area. The team are playing a blinder – well done! CarDealerMag.co.uk | 43
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44 | CarDealerMag.co.uk
Best Dealership Use of Video Sponsored by CitNOW Presented by Oliver Parsons, UK head of sales and client services
From left to right, Oliver Parsons of CitNOW, Scott and Jane Sibley of Redgate Lodge, and Mike Brewer
Winner: Redgate Lodge
Highly commended: Romans International & Premier GT USING video to sell cars or upsell services is becoming part of everyday life for today’s salespeople. So how do you stand out from the crowd when communicating with customers in this way? In this category, we were looking for dealerships that are innovative with their use of video and use it to effectively communicate with their customers. Our two highly commended winners were Premier GT and Romans International – so very well done to them! But our winner shone out above the rest, with incredibly detailed and clearly-shot videos of every car in stock. The winner of the Best Use of Video category for 2018 was Redgate Lodge of Newcastle upon Tyne.
Speaking to Car Dealer immediately after picking up their award, director Jane Sibley said she was ‘absolutely thrilled’ with the dealership’s success, adding: ‘We were really pleased to be nominated. We were up against tough competition so we’re pleased that we’ve won it.’ Fellow director Scott paid tribute to the team behind the company’s triumph, saying: ‘They work really hard to do all the videos and photographs and they’ll be delighted.’ Redgate Lodge is making something of a habit of achieving success at the Used Car Awards – Scott was last year’s Dealers’ Dealer of the Year and this year, Jane was highly commended in the same category.
There was never a dull moment during the pre-awards entertainment at The Brewery!
Brewer’s verdict: Words and pictures are all very well on the internet – but a lot of punters want video these days and Redgate Lodge are at the top of their game in this vital area. Good work ! CarDealerMag.co.uk | 45
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46 | CarDealerMag.co.uk
Used Car Product of the Year Sponsored by 1link Disposal Network Presented by Vicky Gardner, head of remarketing at epyx From the left, Vicky Gardner of epyx, Alan Cooper of Codeweavers and Used Car Awards host Mike Brewer
Winner: Codeweavers – CreditCalc
Highly commended: eDynamix – iConsent & Click Dealer – ClickEngage THE motor industry is full of innovation, and used car dealers are busy people who really appreciate anything that can make their lives easier or help them make more money! This category was hotly contested and our two highly commended winners were Click Dealer for ClickEngage and eDynamix for iConsent. But our winner in this important category has received praise for giving a realistic view to the customer and dealer about someone’s ability to buy a car, and what they can afford based on their credit score. Guests at the Used Car Awards were asked to put their hands together for Codeweavers and their clever product CreditCalc! Alan Cooper, sales director at Codeweavers,
said: ‘Winning this award was a bit of a shock to be honest! There was some big competition in this category this year and we did well to win it, to be fair. ‘CreditCalc is a new product so we’re very proud that it’s won. In the last 18 months to two years, we have moved forwards massively. ‘We’re in most people’s domain now. A lot of people are using us – a lot of manufacturers and a lot of dealers are taking CreditCalc on board and we’re delighted by its success.’ Codeweavers sponsored the Used Car Awards after-party at the Amber Bar this year, so guests were able to keep celebrating into the small hours of the following day!
Click Dealer picked up a ‘highly commended’ certificate for their product ClickEngage
8 million
The number of used cars that changes hands in the UK every year.
Brewer’s verdict: Many buyers these days concentrate on the monthly payment they’ll be making rather than a car’s actual price – and that’s where CreditCalc comes in. It’s a very clever piece of kit. CarDealerMag.co.uk | 47
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Dealer Used Car Website of the Year Sponsored by CarGurus Presented by Wendy Harris, VP European sales From left to right are Wendy Harris from CarGurus, Stuart Harvey with Targa Florio’s award and Mike Brewer
Winner: Targa Florio Cars
Highly commended: Alexanders Prestige & SRK Specialist Cars A DEALER’S website is the first thing most customers will see these days. As we have mentioned before at the Used Car Awards, it’s your virtual showroom and the easiest way to get cars in front of customers as they sit in the comfort of their own homes. To be in with a chance of winning this award, we were looking for something easy to use but also easy on the eye; something that would hook a customer in but had all of the information they could possibly need. Our two highly commended winners in this category were Alexanders Prestige and SRK Specialist Cars so a big well done to them! Like those two, our winner in this category,
Targa Florio Cars of Chichester, West Sussex has a slick website which is packed with information and reflects the premium stock that’s on offer. It uses fantastic videos and photos to show customers what a high level of service they can expect when purchasing a car there. All of the dealership’s cars are meticulously chosen, are subject to stringent pre-delivery inspections and are offered with the company’s own warranty or the balance of the manufacturer’s warranty. No-one from Targa Florio was on hand to collect the award so it was picked up a representative of the company that built the site for them – Stuart Harvey from 67 Degrees.
SRK Specialist Cars were delighted to pick up a ‘highly commended’ certificate
700,000
Nearly 700,000 used superminis found new homes during the summer months!
Brewer’s verdict: Can there be ANY dealers out there who haven’t embraced the web yet? Maybe a few ! But many, like Targa Florio Cars, are at the top of their game online – and doing more deals as a result. CarDealerMag.co.uk | 49
50 | CarDealerMag.co.uk
Manufacturer Used Car Scheme of the Year Sponsored by Lawgistics Presented by Ian Gardner, sales manager
From left to right, Ian Gardner of award sponsor Lawgistics, Guy Bolton of Jaguar and Mike Brewer
Winner: Jaguar Approved Programme Highly commended: Kia Approved Used & Vauxhall Network Q HAVING a strong used car offering has become vital for dealerships during 2018 as many consumers have decided against buying new and instead chosen a pre-owned vehicle. Some manufacturers have really embraced this noticeable shift in the market and their dealers are reaping the benefits. Guests at the Used Car Awards were first of all asked to join Mike Brewer in a round of applause for the two highly commended winners: Kia Approved Used and Vauxhall Network Q. Although it’s always a great achievement to be highly commended, Kia might have been feeling a little disappointed as they were category winners at the last three Used Car Awards ceremonies.
Mike then revealed the name of the winning manufacturer for 2018 – Jaguar – who triumphed largely because of the incredibly thorough 165-point check it carries out on all its used cars – more than any other manufacturer. Guy Bolton, UK product manager, who collected the award, said: ‘I’m glad to be accepting this on behalf of the Jaguar UK team. ‘It’s testament to the extraordinary lengths they have gone to in order to give us a brilliant used car offer.’ Asked if he was having a good time at the awards, he said: ‘It’s fantastic. The Brewery is a wonderful venue and I’m amazed at how many people are here. I’m really enjoying it.’
Customers can enjoy complete peace of mind when they buy a Jaguar Approved used car
165
The 165-point check on Jaguar used cars includes a complete engine preparation, a road test and a final inspection.
Brewer’s verdict: Jaguar’s Approved Used scheme delivers great offers, a two-year warranty and 24 months of roadside assistance – you can’t argue with that ! Their win here is a blinding achievement. CarDealerMag.co.uk | 51
We would like to congratulate everyone who was nominated, highly commended and won awards at the Used Car Awards
Well Done!
For winning....
Manufacturer Used Car Website of the Year Codeweavers sponsored this award and were also winners of the Used Car Product of the Year 2018! We hope everyone has a happy New Year.
contactus@codeweavers.net
52 | CarDealerMag.co.uk
Manufacturer Used Car Website of the Year Sponsored by Codeweavers Presented by Shaun Harris, commercial director From the left are Shaun Harris of Codeweavers, Conor Twomey of Mitsubishi and Mike Brewer
Winner: Mitsubishi
Highly commended: Vauxhall & Land Rover MITSUBISHI Motors in the UK collected the Manufacturer Used Car Website of the Year Award at the 2018 Used Car Awards. The site was constructed by Mitsubishi’s in-house web development team. It not only provides customers with a used car locator, but also flexible finance options, special offers and the full details and benefits of the Mitsubishi Approved Used Car Programme. Conor Twomey, general manager for PR, partnerships and events at Mitsubishi Motors in the UK, said: ‘We’re absolutely thrilled to win this award. It’s a huge deal for us. We’ve got a team of guys in Cirencester who work really, really hard to put together the best product that we can
for our customers, or for anyone thinking about buying a used Mitsubishi. ‘To win this is a really big deal for us. It’s recognition of all the work the guys have done and reflects how good our cars are, as well. ‘We have a very strong team of people dedicated to moving our used cars and selling them and everyone at our Cirencester HQ will be thrilled with this. It is a real pat on the back. ‘Our used car programme is really important to us – particularly for PHEV which is a new vehicle in the used market. The team have had to work extra hard to get the message out there that it’s a wonderful product that will last as long as a conventional car.’
Vauxhall and Land Rover’s used car websites were highly commended in this category
Brewer’s verdict: Mitsubishi’s used car website is absolutely top-drawer. It outlines all the benefits of buying an approved pre-owned vehicle from the brand in a user-friendly, easy-to-follow way. Great job! CarDealerMag.co.uk | 53
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54 | CarDealerMag.co.uk
Specialist Used Car Dealership of the Year Sponsored by Close Brothers Motor Finance Presented by Seán Kemple, director of sales
From left to right are Seán Kemple from Close Brothers Motor Finance, Tom and Adrian Cook from Otter Motors and Mike Brewer
Winner: Otter Motors
Highly commended: Quirks Car Company & Alexanders Prestige FINDING a niche and running a specialist used car dealership can pose plenty of challenges, but when it’s done well, dealers can really reap the rewards and focus on cars they genuinely enjoy buying and selling. Alexanders Prestige and Quirks Car Company were our highly commended winners in this category so a big well done to them! But our winner received close to maximum points in the awards’ mystery shopping process. They answered an enquiry from our team in less than 10 minutes and were extremely knowledgeable about the cars they had in stock. Guests at the 2018 Used Car Awards were kindly asked to put their hands together for
Otter Motors! An independent specialist in BMW and Mini vehicles, the business is based just outside Exeter in the town of Ottery St Mary. Director Adrian Cook described the company’s triumph as ‘a dream come true’ while fellow director Tom, Adrian’s son, was equally pleased. Asked how it felt to be a winner at the Used Car Awards, he said: ‘It’s fantastic. We watched some of the other awards being handed over and almost before we knew it, we were shaking hands with Mike Brewer and celebrating our own success. It’s all a bit surreal.’ Asked about the secret of their success, Adrian simply said: ‘Customer satisfaction is key. If you’ve got that, you’re laughing.’ Very true!
The Quirks Car Company team pick up their ‘highly commended’ certificate
The scene that greeted guests at The Brewery in London on the night of the Used Car Awards
Brewer’s verdict: The guys from Otter Motors were delighted to win this award and wasted no time shouting about it on their website! Rightly so, too – they should be very proud of their success. CarDealerMag.co.uk | 55
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ASTON BARCLAY 56 | CarDealerMag.co.uk
Used Car Sales Team of the Year Sponsored by Aston Barclay Vehicle Remarketing Presented by Neil Hodson, chief executive officer
The triumphant Trade Price Cars team on stage with Neil Hodson, far left, and Mike Brewer
Winner: Trade Price Cars
Highly commended: LNK Motors & RS Car Sales HOW a team works together to do the best for their business but also their customers is vitally important to a respected and profitable operation. In this category, we were looking for a team that made the process seamless and easy for customers, while efficiently working together. Our two highly commended winners were LNK Motors and RS Car Sales. Our winner – Trade Price Cars of Wickford, Essex – has a large site and large team, but still responded to an enquiry from one of our mystery shoppers in just two minutes! All of the information was given up-front and the dealership received maximum points throughout the process – an incredible feat.
Commenting on the award win, general manager Chris Kirby said: ‘This feels absolutely fantastic. This is our third year at the Used Car Awards and it’s been a brilliant evening as always. We’re over the moon. ‘We’ve got a very strong sales team and the way that we work at Trade Price Cars is that everybody pulls together to drive our sales forward. Nobody is individually targeted or bonused, we pull together to make our customer experience the best it can possibly be. ‘Our business wouldn’t exist without the people that we’ve got at Trade Price Cars – they’re the best in the industry and we deliver the best sales process that we possibly can.’
RS Car Sales picked up a ‘highly commended’ certificate in the vital sales team category
2009
The year in which Trade Price Cars was formed – when its primary business was supplying used vehicles directly to dealers for their resale operations.
Brewer’s verdict: Trade Price Cars have enjoyed success before at these awards – and when you read the testimonials on their website, it’s easy to see why. Quality cars and great service – what’s not to like? CarDealerMag.co.uk | 57
Award-winning warranties. As voted by dealers... WMS Group Ltd are today one of the UK’s leading business-to-business car warranty suppliers, providing extended warranty cover and other motoring protection to over 3,500 dealerships across the UK. Our warranty products and services are designed to help our dealer partners to improve their customer retention, workshop activity and ultimately, profitability. From a basic three-month warranty to a three year, all-mechanical and allelectrical product that even includes wear and tear, we guarantee to have the right products for your business.
Congratulations to Sarah Vilkas of Ecarlogical on winning Used Car Dealer Principal of the Year from everyone at The WMS Group. Also well done to Will Blackshaw and Umesh Samani who were Highly Commended.
The warranty experts
Warranty Provider of the Year 2018
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For the fourth year in succession!
58 | CarDealerMag.co.uk
Used Car Dealer Principal of the Year Sponsored by the WMS Group Presented by Ben Collins of the WMS Group Safe and Sound scheme
From left to right, Ben Collins, Chris Vilkas, Sarah’s husband, who picked up the award on her behalf, and Mike Brewer
Winner: Sarah Vilkas – Ecarlogical
Highly commended: Will Blackshaw – Blackshaws & Umesh Samani – Specialist Cars Stoke DEALER principals are the driving force behind a top-drawer sales team. The person in charge needs to manage effectively but also do their bit when it comes to notching up sales. We had a lot of potential winners here and it was hard to narrow it down to five top candidates. Our two highly commended DPs were Will Blackshaw from Blackshaws, Northumberland, and Umesh Samani from Specialist Cars of Stoke. But our winner on the night runs a team at a specialist dealership and our mystery shoppers said every one of them was polite, courteous and helpful. Despite selling stock that many customers don’t yet understand, the
knowledge and passion of her team stunned us. It’s clear that they work together seamlessly and are kept on the same page by our winning dealer principal. Our Used Car Dealer Principal of the Year for 2018 was... Sarah Vilkas, left, of Ecarlogical, Portsmouth. After the ceremony, Sarah said she had had an ‘amazing’ evening, adding: ‘To be nominated, then to be a finalist, was a huge compliment but to win is insane and I’m so proud of myself! ‘Thank you to [my husband] Chris and everyone for an amazing evening and for some lovely, kind words from some of the most experienced guys in the industry.’
Ecarlogical stocks models such the Renault Zoe, above, and Nissan Leaf
Brewer’s verdict: Sarah is knowledgeable and enthusiastic about electric and hybrid motoring which is great to see. It really is the future of our industry so she and her team should have a bright future ahead. CarDealerMag.co.uk | 59
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Rising Star Award Sponsored by Progress Recruitment Solutions Presented by Laura Rycroft, managing director
Laura Rycroft, Josh Scaife and Mike Brewer on stage at The Brewery
Winner: Josh Scaife
Highly commended: Stephenie Lawrence – SuperMini UK & Matthew Nixon – Weybridge Vehicle Consultants THE Rising Star Award identifies those used car dealers who are working their way towards a bright future in the industry. These individuals have been nominated by their colleagues for making a difference and working hard every day. Our two highly commended winners for 2018 were Stephenie Lawrence from SuperMini UK and Matthew Nixon from Weybridge Vehicle Consultants! But our winner, Josh Scaife, is a top performer and a dedicated member of the team at his dealership, Yorkshire Vehicle Solutions. He started out in the motor trade at 20 and is now a top-seller at just 23 years old. Josh won praise for staying late at work when
necessary and sacrificing days off to help out and keep customers happy. One comment we received read: ‘The business couldn’t run as it does without him.’ Straight after collecting his trophy from awards host Mike Brewer, he said it felt ‘really good’ to be a winner and added: ‘I didn’t expect it at all.’ Explaining his route into the motor trade, he said: ‘My brother – my boss – started the business about five years ago. I was helping him out on my days off while still in my old job and then we just progressed from there. ‘There are seven of us now in the team and it’s really good. We’ve got 110 cars on the pitch and there isn’t room for any more!’
Matthew Nixon, above right, and Stephenie Lawrence were highly commended
Brewer’s verdict: The used car industry needs fresh talent if it’s to enjoy a bright future – and there seems to be no shortage of that! It was a pleasure to meet our three winners – well done to you all. CarDealerMag.co.uk | 61
Congratulations to the winners at the Used Car Awards 2018 and especially Imola of Bristol for winning the Used Car Customer Care award
Dealer Network
Contact us for details Call: 0330 100 3807 Email: dealernetwrk@rac.co.uk Visit: rac.co.uk/getapproved 62 | CarDealerMag.co.uk
Best Used Car Customer Care Approved Dealer
Sponsored by the RAC Approved Dealer Network Presented by Alastair Crossley, head of motoring services at the RAC
From left to right are Alastair Crossley of the RAC, Viv Hope of Imola of Bristol and Mike Brewer
Winner: Imola of Bristol
Highly commended: Motonet & eCars247 THIS is always the most hard-fought category of the Used Car Awards, and this year we had 60 different dealerships nominated! It goes without saying, then, that our three finalists fought off an incredible amount of competition. First off, it was time to congratulate our two highly commended winners: eCars247 and Motonet. Well done! Our winner was professional and friendly, and our mystery shoppers said the service they received was absolutely perfect. This is backed up by 78 five-star reviews on Auto Trader, a score of 4.6 out of five on Google and 4.8 on CarGurus, with customers agreeing that the customer care they experienced was the best they had ever received.
Our winner in the Best Used Car Customer Care Category for 2018 was Imola of Bristol! Sales manager Viv Hope said it felt ‘really great’ to win the award. Holding the trophy in his hands, he added: ‘It was a great surprise to win this and we feel really proud. ‘We put in a lot of hard work and it’s fantastic to get some appreciation for what we’ve done. ‘We hate the used car stereotype – we’re trying to get away from that. We’re really aware the modern consumer hates it too so we try to offer a level of customer care that doesn’t meet that stereotype. We try to treat our customers the way we would like to be treated and we want people to feel they have had a good experience with us.’
Motonet did extremely well to be highly commended in the customer care category
Brewer’s verdict: Imola of Bristol are clearly going from strength to strength and it’s great to see. Last year they were a highly commended newcomer and their customer care is top dollar. Well done! CarDealerMag.co.uk | 63
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Used Car Supermarket of the Year Sponsored by Motion Finance Presented by Ian Kay, director
The team from Big Motoring World with Ian Kay from Motion Finance, left, and Mike Brewer
Winner: Big Motoring World Highly commended: Imperial Cars & SW Car Supermarket WHEN it comes to managing a LOT of stock and cars of all shapes and colours, used car supermarkets know how to keep a handle on it. After all, if your forecourt is measured in acres rather than square metres, you’ve got a lot of plates to keep spinning. Keeping your customers happy can be difficult – but our finalists at this year’s Used Car Awards certainly have that covered. Our two highly commended winners were Imperial Cars and SW Car Supermarket so huge congratulations to them! But our overall winner – Big Motoring World – has invested a huge amount of money in a new site, which really wowed our mystery shoppers.
The tech that’s used would rival that of Apple Stores and our judges discovered that the customer experience was excellent at every stage. Big Motoring World is the UK’s largest independent BMW dealer. The company offers customers an ‘exceptional journey’ to buying a quality pre-owned BMW, Mercedes, Audi or Volkswagen at prices consistently below market value. Founded in Kent 30 years ago, it remains in the garden of England with three sites – two of which are sales branches, and one a collection centre and preparation site. Many congratulations to all three winners in this important category!
The team from SW Car Supermarket with Mike Brewer, above, and, below, Neil Smith from Imperial Cars with the two ‘highly commended’ awards his firm won on the night
Brewer’s verdict: I know Big Motoring World have invested heavily in their dealerships recently as well as training and customer service initiatives. It’s money well spent as they are really riding high! Well done. CarDealerMag.co.uk | 65
Congratulations to Emerald House of Cars for winning the Newcomer Dealership of the year award
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66 | CarDealerMag.co.uk
Newcomer Dealership of the Year Sponsored by Shpock Motors Presented by Steve Grice, UK head of sales
The triumphant Emerald House of Cars team on stage with Steve Grice from Shpock Motors, second right, and Mike Brewer
Winner: Emerald House of Cars Highly commended: Motor Connect & Elite Preowned Vehicles STARTING a new business is hard – and there aren’t many industries tougher than the used car trade when it comes to getting up and running. Our three winners in this category were able to forget about the long hours and hard work they put in for a little while, and celebrate their success at the Used Car Awards. Newcomer of the year is an award every new dealership wants to win, as many previous recipients of trophies and certificates have gone on to be successful and well-established. All three dealerships who triumphed this year truly impressed our judges with their prompt responses to mystery shopping inquiries and the friendliness and courtesy of their staff.
Mike firstly congratulated our two highly commended winners: Elite Preowned Vehicles and Motor Connect. Well done indeed! Then it was time for guests to put their hands together for the overall winner: Emerald House of Cars from Wednesbury in the West Midlands! Director Peter Quinn said: ‘Winning this award feels absolutely amazing. We started the business three years ago with this exact intention in mind. Our mission has been to be the best car dealership in the UK. ‘Everything we do, every single day, is focused on being the best, especially in terms of customer service. We’re absolutely honoured to win this award and it’s only the start for us.’
Highly commended were Elite Preowned Vehicles (managing director James Whitcher is with Mike above) and Motor Connect, below
Brewer’s verdict: I loved meeting the team from Emerald House of Cars. They deliver great cars and top customer service – and celebrated in style on our awards night. That’s what it’s all about! CarDealerMag.co.uk | 67
When life changes we're life changing
Always here for you www.ben.org.uk Helpline 08081 311 333
Sign up for tips, advice and tools:
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Find plenty of advice, online chat and self-help tools on our website, or talk to us on the helpline, free and in complete confidence, Monday to Friday 8am–8pm. Ben – Motor and Allied Trades Benevolent Fund. Lynwood Court, Lynwood Village, Rise Road, Ascot, SL5 0FG. A charity registered in England and Wales (no.297877) and Scotland (no. SC039842). A company limited by guarantee, registered in England and Wales (no.02163894).
68 | CarDealerMag.co.uk
Outstanding Achievement of the Year Sponsored by Ben Presented by Kelly Neal, head of events
From the left, Kelly Neal from Ben, Craig Purvey from BCA, Sean Kelly from Action for A-T and Mike Brewer
Winner: BCA Charity Cycle Ride THERE are a lot of kind-hearted people in the used car industry – and many companies in the sector organise fund-raising events of one sort or another. Few, however, are on the scale of the BCA charity bike ride that took place earlier this year. A team of cyclists from BCA and the wider motor industry, joined by BBC news presenter and well-known cycling enthusiast Naga Munchetty, left BCA Bedford on the morning of September 20, arriving at the Royal Palace, Amsterdam two days later. In addition, a team of more experienced cyclists successfully tackled the Alpe D’Huez route that is used in the Tour de France, also raising funds for Action for A-T. All in all, more than £100,000 was collected. Sean Kelly, chief executive of Action for A-T, said: ‘The amount of money raised was absolutely
outstanding. We’re a very, very small charity – there are only two permanent staff members – so to receive this amount of money from an organisation like BCA is life-changing for an organisation like ours. ‘A-T, otherwise known as Ataxia Telangiectasia, is an incredibly rare condition and there are about 170 families affected by it in the UK. ‘Without us, there would be no hope for those families and that’s why the support of BCA is so important to us. We would like to thank BCA, their customers and all the sponsors for supporting Action for A-T.’ Purvey said: ‘We were delighted to break through the £100,000 barrier. We know this money will be put to very good use helping to identify a cure for this debilitating disease.’ The cheque for £100,065.87. was handed over to Action for A-T at BCA Blackbushe in October.
The BCA charity bike riders line up for a photo, above, and below, the cheque for more than £100,000 is handed over to Action for A-T
Brewer’s verdict: ‘What a great effort by all those cyclists! And what a worthwhile cause to raise money for. Everyone involved in this superb fund-raising endeavour should feel very proud of themselves.’ CarDealerMag.co.uk | 69
Responsible for Keeping the wheels of the Industry turning? You need insurance that is in tune with the challenges you face. And a specialist broker who understands the intricacies of your sector. Contact E: jem.emirali@astonlark.com T: 01732 872899 M: 07775 023559 YOUR WORLD IS OUR FOCUS www.astonlark.com/business/motor-trade Authorised and regulated by the Financial Conduct Authority.
70 | CarDealerMag.co.uk
Lifetime Achievement Award Sponsored by Aston Lark Presented by Jem Emirali, motor trade account executive From the left, Jem Emirali, John Bailey and Mike Brewer
Winner: John Bailey Cox Automotive
WINNER of the Lifetime Achievement Award at the 2018 Used Car Awards was John Bailey, president of international operations at Cox Automotive plc. His triumph came shortly after he had finished his final week with the company – one of the biggest in the industry – having worked there for 30 years. Mike Brewer told his audience at The Brewery: ‘I’ve been told he’s already had a leaving week and you could say tonight’s event is another leaving party especially for him. ‘He headed up his family car auction business for many years before it entered into a venture with Manheim in 1996, giving him more than 30 years in the industry. And most recently he has served as president of an international organisation which has offices in more than 30
countries with its largest operations in the United Kingdom, Australia and Canada. ‘With such a wealth of experience, he has worked closely with many people in the motor trade and has been an entrepreneur all his life.’ Bailey was born and educated in Bristol, and as a lifelong entrepreneur has been responsible for starting up a number of businesses both inside and outside the automotive sector. He left college in 1979 and joined the family business, Bristol and West Motor Auctions. Career highlights include the launch of Auctionvision; the heading up of a joint venture in Madrid to remarket vehicles in Spain; and the launch of Vehicle Remarketing Solutions in 2003.
Guests were welcomed to The Brewery in fine style on the night of the Used Car Awards
Brewer’s verdict: John Bailey has achieved incredible things during a stellar career in the automotive industry. This Lifetime Achievement Award is richly deserved – congratulations. CarDealerMag.co.uk | 71
A better way of doing business
SUPPORTING DEALERS, WHATEVER IS AROUND THE CORNER.
At Black Horse we have a range of tools to help you understand and meet the latest FCA requirements. Putting the customer first is at the heart of our business. With dedicated account managers we can help you create a transparent experience and deliver great customer outcomes. So, whatever changes are waiting around the corner, we’re ready to help you. Discover more at: blackhorse.co.uk/abetterway
72 | CarDealerMag.co.uk
Used Car Dealership of the Year – Up to 50 Cars Sponsored by Black Horse Presented by Tim Smith, head of motor finance
From the left, Tim Smith, Stephenie Lawrence, Mat Clarke and Mike Brewer
Winner: SuperMini UK
Highly commended: Whitethor Cars & The Professional Car Agent THE under-50 cars category is a dog-eat-dog world and anyone operating in this area of the market really needs to be on top of their game. Our two highly commended dealerships in this category were The Professional Car Agent and Whitethor Cars so very well done to them! But our winner, SuperMini UK, based in Nottingham, was fully deserving of the trophy. When one of our mystery shoppers contacted the business during the judging process, there was a reply within minutes. Their scoring was almost faultless, and our mystery shoppers said SuperMini UK went above and beyond the call of duty to deliver excellent customer care.
Company director Mat Clarke, attending the ceremony with his partner and fellow director Stephenie Lawrence, was thrilled. He said: ‘It’s amazing for us to have won. We’re in a room full of people such as Marshall Motor Group and Big Motoring World whereas me and Steph sit in a shed and sell cars! We just try to look after our customers and do a good job. ‘We live together and work together – we’re with each other 24/7 and this is a massive thing for us. We’re trying to get bigger and trying to achieve bigger things and this is the icing on the cake, it’s superb. ‘Thanks to Car Dealer Magazine for putting this event on, it has been a fantastic evening.’
The Professional Car Agent, above, and Whitethor Cars were highly commended
Brewer’s verdict: It’s great to see genuine joy on the faces of our winners and Mat and Stephenie seemed chuffed to bits with their triumph. So they should be – it’s a banging result for SuperMini UK ! CarDealerMag.co.uk | 73
Used Car Dealership of the Year – 51 to 100 Cars Sponsored by Black Horse Presented by Tim Smith, head of motor finance
From the left, Tim Smith, Adrian Snook from Belgrave Motor Company and Mike Brewer
Winner: Belgrave Motor Company Highly commended: Motonet & MB Motors Ballymena THERE were lots of strong contenders in the 51-100 cars category this year but our top three won through thanks to their prompt and friendly replies to our enquiries, good selections of stock and appealing websites. Our two highly commended winners for 2018 were MB Motors Ballymena and Motonet. Our winner on the night, though, was quick to respond to enquiries and offered great service on the phone and in person. Our experiences are reflected by other customers who have given them glowing reviews online. This dealership has a huge stock of premium cars, prepared to a great standard, and displayed in a modern and stylish showroom.
Our winner of Used Car Dealership of the Year 2018 in the 51 to 100 cars category is Belgrave Motor Company, Sheffield! Adrian Snook, managing director of the firm, said he was ‘surprised and pleased’ by the award. Asked what he thought was the secret of their success, he replied: ‘Good teamwork, a fantastic stock of cars, a great buying team and a great selling team. ‘Customer care is really to the forefront of our success, too, I think. We have fabulous reviews online and we look after everybody like they are the king of customers! Everybody is important and we really try to impress our customers and get referrals from them for our excellent service.’
Motonet, above, were highly commended in this category, as were MB Motors Ballymena
Brewer’s verdict: Belgrave Motor Company is only a couple of miles from my own Sheffield dealership – and I know they are very well regarded in South Yorkshire and beyond. Nice one! 74 | CarDealerMag.co.uk
Used Car Dealership of the Year – Over 100 Cars Sponsored by Black Horse Presented by Tim Smith, head of motor finance
The Beck Evans team on the Used Car Awards stage with Tim Smith and Mike Brewer
Winner: Beck Evans
Highly commended: Trade Price Cars & Roadside (Garages) Ltd ORGANISATION is key when running a site populated by more than 100 cars. Keeping your customers happy, stock turning and standards high can sometimes be a challenge. This year, we had some fantastic names in this category who have been doing brilliant work. Our highly commended winners were Roadside (Garages) Ltd and Trade Price Cars – who both featured in the top three last year. Roadside (Garages) was top dog in 2017, in fact. Like so many categories in the Used Car Awards, this is a tough one, but there can only be one winner and Beck Evans emerged triumphant after the rigorous mystery shopping rounds and the scrutiny of our judges. The company, based in
Sidcup, Kent, stocks a huge range of used cars – or as they call them, pre-loved. Sales manager Neil Relph paid tribute to the ‘hard work of the whole team’ and said: ‘We have a good process that we have worked on really hard. We get a lot out of our site and out of our business.’ Director Sam Evans added: ‘It’s a big team effort, they’ve all come together and obviously it’s shown in winning the award.’ Fellow director Daniel Evans said customer care was a key part of the firm’s success and added: ‘We’ve been going since 1970 and we get a lot of repeat business. We look after people – that’s what we’re all about.’
The Porter Tun room at The Brewery... before our hundreds of guests arrived for the awards!
Brewer’s verdict: You really need to be on top of your game if you’re stocking more than 100 cars – and the team from Beck Evans are showing how it can be done. An amazing achievement! CarDealerMag.co.uk | 75
Used Car Dealership Group of the Year Sponsored by Black Horse Presented by Tim Smith, head of motor finance
From the left are Tim Smith of Black Horse, Simon Palmer of Hendy Group and Mike Brewer
Winner: Hendy Group
Highly commended: CCR Motor Company & Marshall Motor Group IT’S A challenge for a dealer group to co-ordinate all its sites to give the same outstanding levels of customer service, but our winners in this category have got it down to a fine art. Guests at the awards were first of all asked to put their hands together for our two highly commended dealer groups: CCR Motor Company and Marshall Motor Group. But our winner was the south of Englandbased Hendy Group, a company that despite growing significantly recently, still manages to deliver fantastic customer service day in, day out. Simon Palmer, used car sales director, said: ‘To win this award is brilliant, absolutely fantastic. ‘I’m delighted for the whole team as much as
anything. This is a massive boost for us all. ‘News of this sort of award gets round the whole group and it’s important that this success is shared with everybody. It’s not just sales, it’s all the support teams, admin teams and logistics teams, the buyers and everyone.’ Asked if Hendy Group had enjoyed a successful 2018, Palmer referred back to the company’s acquisition of the Lifestyle Motor Group in 2016 and said: ‘We took on a lot more dealerships then and they have taken a while to bed in. ‘I guess 2018 has been the first year during which we’ve really pushed forward. This award tops the year off!’ Many congratulations to all three companies.
The CCR team collect their ‘highly commended’ certificate from Mike Brewer
1859
The year in which Hendy Group was founded, meaning the company has been trading for more than 150 years.
Brewer’s verdict: Hendy Group is a fantastic business and I genuinely admire their ethos of doing the right thing by customers, employees and suppliers. They fully deserve this award. Good work! 76 | CarDealerMag.co.uk
A better way of doing business
SUPPORTING DEALERS, WHATEVER IS AROUND THE CORNER.
At Black Horse we have a range of tools to help you understand and meet the latest FCA requirements. Putting the customer first is at the heart of our business. With dedicated account managers we can help you create a transparent experience and deliver great customer outcomes. So, whatever changes are waiting around the corner, we’re ready to help you. Discover more at: blackhorse.co.uk/abetterway
CarDealerMag.co.uk | 77
Used Car Awards 2018 Sponsored by Cox Automotive Presented by James Leese, group sales director
Cars with six appeal are top performers
I
t’s time to reveal our six of the best for 2018 – the half-dozen used cars that really do make a big difference to the fortunes of the UK’s hard-working car dealers. In order to determine our used car heroes at this year’s Used Car Awards, we once again crunched the numbers to work out which ones have the best residual figures after three years or 30,000 miles. Data taken from Auto Trader and Cap HPI was analysed and combined to identify the deserving winners you see on these pages. The six categories are best used small car, best used mid-sized car, best used executive car, best used sports car, best used SUV and best used electrified car. An overall winner from them is then named the best used car of the year, scooping a second trophy to mark its supreme achievement. These awards are ones that no individual dealer can influence – it’s all about the market figures for these vehicles at the time of the judging process. That also means they are some of the toughest to win, as every vehicle that is three years old is eligible in its category – but only one can prevail.
USED ELECTRIFIED CAR OF THE YEAR
USED MID-SIZED CAR OF THE YEAR
MITSUBISHI OUTLANDER PHEV
MERCEDES-BENZ A-CLASS
THERE’S a lot of tough competition in this category as it covers all-electric and hybrid cars, even though they are only just finding their way on to the used market. The Mitsubishi Outlander PHEV is a big name in this segment and was a bit of a game-changer for the manufacturer when it first arrived in dealerships. It’s continued to be popular, as it offers great economy and is a really practical everyday car.
MID-SIZED cars are central to the success of dealerships, offering a little more practicality than city cars but often retaining good levels of fuel economy. As buyers are becoming more demanding and expecting more equipment from cars in this segment, this category is becoming more competitive. The Mercedes-Benz A-Class is proof that premium and well-specified cars are becoming a vital part of the used car market.
Mitsubishi’s Conor Twomey accepted the trophy from James Leese and Mike Brewer
Gillian Forrest from the charity SeeSaw picked up the award on Mercedes-Benz’s behalf
USED SUV OF THE YEAR
KIA SPORTAGE THERE’S big money in used SUVs if you can buy them at the right price and find the right buyer. In the UK we can’t get enough of them and a lot of that comes down to the prestige of ownership. The Kia Sportage has been a huge success for dealers who sell the car in both the new and used markets – and it impressed our judges big-time.
Paul Williams, national used vehicle sales and remarketing manager at Kia, with the trophy 78 | CarDealerMag.co.uk
USED SMALL CAR OF THE YEAR
USED EXECUTIVE CAR OF THE YEAR
USED SPORTS CAR OF THE YEAR
HYUNDAI i10
BMW 3 SERIES
JAGUAR F-TYPE
SMALL cars can bring you customers for life by building fantastic relationships with new drivers, but also serving them throughout the years. With great profit opportunities, it’s easy to see why this type of car is a staple for a lot of dealerships. The Hyundai i10 is everything a small car needs to be. It impressed our judges with its on-point road manners and refined cabin, excellent reliability and good specifications.
IT’S a segment that’s dominated by the German brands, and there’s always going to be strong demand from people desperate to get into an executive car with badge appeal. That said, they need to have a specific set of characteristics – buyers are looking for comfort paired with performance and at least a hint of luxury. The BMW 3 Series ticks all of those boxes and buyers are always impressed with its quality and spec.
USED Sports Car of the Year is a specialised segment and attracts a certain type of buyer, but it’s still a competitive area with plenty to choose from. Our winner, the Jaguar F-Type, has proved popular since it was introduced in 2013, and there have been several impressive updates since. Jaguar’s Guy Bolton, who collected the award at The Brewery, said: ‘F-Type as a product is absolutely fantastic – it’s a beautiful car.’
Hyundai’s Michael Stewart accepted the trophy for the triumphant small car the i10
Leanne Thames, head of used cars for BMW Group, picked up the trophy for the 3 Series
Guy Bolton from Jaguar collected the F-Type’s trophy from Messrs Leese and Brewer
OVER THE PAGE: THE OVERALL WINNER
CarDealerMag.co.uk | 79
WI N
NE R
Auc t io of t h n H o u s e e Ye ar
Better Thinking Better Operations Better Value Today Better Value Tomorrow
Vehicle remarketing that accelerates days to sale and amplifies profit potential for our partners
manheim.co.uk 80 | CarDealerMag.co.uk 169084 05.12.18
Used Car Awards 2018 Sponsored by Cox Automotive Presented by James Leese, group sales director
USED CAR OF THE YEAR
KIA SPORTAGE From left to right: James Leese, John Hargreaves representing Kia, and Mike Brewer THE Kia Sportage was named Used Car of the Year for 2018 – triumphing over the other five models who won in their individual categories. John Hargreaves, general manager, fleet and remarketing for Kia Motors UK, said: ‘We’re absolutely delighted. Sportage has underpinned everything Kia has achieved over the last 10 years when it comes to new and used cars. ‘The Sportage has been an incredibly good new car, and as a used car, values have held up very well considering the volumes we have sold.
‘That’s partly down to the way that we’ve controlled the sales channels for new cars but also the way the dealers have embraced the car as a used car, supported by our Approved Used Car programme. It’s just been a really, really good car for us and also for our dealers. ‘The dealer network are very comfortable with the car. They know that when they take a used Sportage they’re not going to have it for very long – it’s a car that sells quickly and is a really good used proposition for them.’ [CD]
Brewer’s verdict: ‘Kia have really nailed it with the Sportage. It ticks so many boxes as it’s versatile, practical, good-looking and well-built. No wonder it’s so popular with the brand’s dealer network!’ CarDealerMag.co.uk | 81
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Focus on. Startline Motor Finance
New ‘flexible prime’ PCP finding impressive levels of penetration STARTLINE
W: startlinemotorfinance.com E: enquiries@startlinemotorfinance.com
A
n innovative PCP from Startline Motor Finance is already seeing 50 per cent penetration at some franchise dealerships just six months after launch. The product is designed to be offered by dealers alongside PCPs from traditional prime lenders and suggested as an alternative source of funding when applicants are declined. However, it offers APRs and general terms similar to those offered by prime lenders rather than resembling a sub-prime product. CEO Paul Burgess said: ‘At some of our most important franchise dealer customers, half the business that we have written in the last few months is for the PCP which, to us, shows that the product has immediately found quite an important niche in the market. ‘In many cases, we are helping dealers to sell cars and customers to buy them in a way that would otherwise be unavailable. ‘Certainly, interest is high from a wide range of franchise and independent dealers. ‘They recognise that it is an innovation that could potentially open up PCP to a wider market that has previously been ignored by the motor finance sector.’ Paul explained that the PCP product was designed for customers who have been rejected by prime lenders – even though they are good credit risks – because they do not meet requirements based on their work patterns or other socio-economic factors. ‘We live in a changing world and someone who rents their home or works on a series of temporary contracts should not be excluded from a fair approach to motor finance. ‘Around 20 per cent of used car buyers fall into this category, we believe. ‘Our underwriting takes a closer look at the circumstances of the person making the finance application, often entering into a dialogue with them and with the dealer. ‘The thinking is that if we can gain an understanding of that person’s overall financial
Chief operating officer Gregor Sutherland, left, and chief executive officer Paul Burgess position, then we can work to arrive at a solution that meets their needs. It’s a more holistic process. ‘Crucially, we provide a third option for dealers who currently only offer prime and sub-prime lenders. Too many customers who do not meet prime criteria are passed straight to sub-prime lenders when they remain good credit risks, we believe. Flexible prime has very much been created for these people and their particular circumstances.’ A whole range of flexible prime products The new PCP product forms part of a range of products that include the core Startline hire purchase product and Finishline, which was launched last year. The latter is designed to provide a further hire purchase option, being targeted at used car buyers who narrowly fail to
‘We have now built a flexible product range that is unlike anything else in the motor finance sector and which meets a very definite need.’ Paul Burgess
meet the company’s primary lending criteria but are still good-quality applicants. Paul said: ‘We have now built a flexible product range that is unlike anything else in the motor finance sector and which meets a very definite need in the market – especially, we believe, as the economy heads into potentially choppier financial waters during 2019.’
About Startline Motor Finance Headquartered in Glasgow, Startline Motor Finance is run by a highly experienced motor finance team and has a sales presence throughout the whole of the UK. More details at startlinemotorfinance.com or email enquiries@startlinemotorfinance.com CarDealerMag.co.uk | 83
TO U G H CO LO U R We’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
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Focus on. Autoglym
LifeShine – How Autoglym has made the best even better AUTOGLYM
E: lifeshine@autoglym.com T: 01462 677766
L
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 | 85
DO YOU KNOW WHERE YOUR LEADS ARE COMING FROM?
INTELLIGENT & AUTOMATED SYSTEMS WEB | SEM | DMS | LEAD MANAGEMENT | CRM | ONLINE REPUTATION
01782 454 354 www.clickdealer.co.uk cardealermag@clickdealer.co.uk 86 | CarDealerMag.co.uk
@ClickDealerLtd @ClickDealerLtd
Focus on. Click Dealer
We’ll help dealerships thrive amongst the challenges of 2019 CLICK DEALER
I
E: cardealermag@clickdealer.co.uk T: 01782 454 354
n a recent Click Dealer customer survey about the biggest challenges its dealership performance partners would face in 2019, the results highlighted some key trends such as stock sourcing and lead management, as well as the word on everyone’s lips, Brexit. The latter seems to be providing some real uncertainty for dealers across the length and breadth of the UK and it’ll bring an unrivalled level of uncertainty to the market in 2019 and beyond. Despite being master innovators with decades of industry experience, Click Dealer can’t predict the effects of Brexit on the automotive industry, but what they can do is make sure that dealerships are well equipped to tackle any challenges they may face next year and find a way to help them navigate potentially choppy waters! To that end, Click Dealer has been investing in technology and has several huge product releases planned and ready to launch in January, including advanced lead and prospect management solutions and mobile applications
which will save dealers time and make their lives considerably easier. The dealership performance experts are ready to ring in the new year with a bang by utilising cutting-edge technology to improve performance and remove inefficiencies within dealers’ archaic processes. This methodology has been at the core of all Click Dealer product developments. One of the issues Click Dealer has been working to tackle has been improving lead management for its dealers, with far too many enquiries being lost, left unanswered and too much money slipping through the net. In tougher times, it’s vital to grasp every opportunity with both hands and with Click’s latest product innovation, dealerships won’t need to worry about missing any more leads. In this day and age, dealerships should have the ability to keep all leads, whether they’ve come from emails, portals or walk-ins, in one easy-toaccess system, with the option of having staff KPI monitoring, lead notifications and enhanced enquiry management factored in as well. With today’s customer expectations, dealers must be on top of their administrative processes in order to offer consumers the speedy replies and topquality service they are now accustomed to. As a business at the forefront of automotive
technology, Click Dealer wants its performance partners to make data-driven decisions, allowing them to ride the wave of digital opportunities and take advantage of the automation and process refinement that tech can bring. Over the years, championing an open integration policy, remaining transparent with our customers and staying at the cutting edge of new technological advances has served Click Dealer incredibly well. The business has no plans to abandon these core philosophies anytime soon. In 2019, Click Dealer will continue to invest in its already market leading customer service team and in dealership training to make sure that our customers feel supported in times of unprecedented change and uncertainty in the industry. As we look back on 2018 though, we’d like to raise a toast to the successes of all of our multiaward winning dealership partners and wish them all the best for a challenging but successful 2019 and beyond! l For more information on how Click Dealer can help your dealership start the new year with a bang and improve performance in 2019, get in touch via cardealermag@clickdealer.co.uk or on 01782 454 354. CarDealerMag.co.uk | 87
Focus on. eDynamix
Bringing sales and aftersales together in a whole new way EDYNAMIX
B
T: 0845 413 0000 W: edynamix.com
efore the advent of the technological age, life in the motor trade was predominantly paper-based and users worked with one system at most. Then the emergence of new technologies brought with it a plethora of different systems specifically designed to digitise these processes. Whether it be carrying out a vehicle health check, selling a service plan or reminding customers about their service and MOT, users were expected to work with multiple systems, each one having a different log-in. To add to the confusion, not all of these systems integrated with each other and even when they did, there remained a lot of double keying. This opened the door to data inconsistency, process inefficiencies and general mistakes. Currently you could argue not much has
88 | CarDealerMag.co.uk
changed. In fact it could be said that things are worse than ever as even more processes and systems have emerged. We have now evolved to the recording and sending of videos to customers and tracking sales enquiries as they progress from enquiry to sale. In 2010, eDynamix was created to provide service plans to dealers. Subsequently, it became apparent that there was a necessity to build a solution that encompasses ALL the daily aftersales processes from one log-in. Within a few short years, eDynamix was able to offer service plans, iVHC, a service and MOT CRM system, a video platform, and much, much more – all of which not only integrate fully with each other but also integrate with the majority of DMS systems. eDynamix now offers a full complement of aftersales solutions and is moving into the sales arena to bring sales and aftersales together in a way never done before. System and process efficiencies, as well as usability and functional richness, are paramount to the eDynamix vision. Hence, in addition to
eDynamix never charges set-up fees, nor do we insist on tied-in contracts for any of our current portfolio of products, which include: • eVHC • Service plans • Follow-up CRM • Online bookings • Customer surveys • Automated customer app • Repair and finance plans • Sales & aftersales video • Sales lead management • Used stock management • Connect management app • Courtesy car management • GDPR consent management • GDPR marketing data cleansing • MOT history and data cleansing • WIP/debtor control management integration with DMS applications, integration is also available with other data providers such as DVLA, DVSA & VOSA, Auto Trader, Glass’s, CAP HPI, TPS, MPS and many more. l To find out more or to book a demo, contact eDynamix on 0845 413 0000.
WISHING ALL OUR CAR DEALER FRIENDS A VERY MERRY CHRISTMAS
AND A SUCCESSFUL 2019 CarDealerMag.co.uk | 89
/ Perfect Welding / Solar Energy / Perfect Charging
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W: www.fronius.co.uk
W
ith never-ending rises in electricity prices and the increasing number of electric vehicles that need charging on-site, there’s a way to not only protect yourself from further increases but to do so with no upfront investment. Fronius has partnered with some of the UK’s biggest brands to deliver financial savings, carbon reductions and energy independence. Recognising that the upfront cost associated with a Solar PV investment was preventing companies from achieving enormous savings with the technology spurred the creation of a unique leasing system provided by the global inverter manufacturer. How does it work? Unlike Power Purchase Agreements, this model allows you to lease the equipment required to generate your own green electricity over a 15-year period, with the option of ownership thereafter (other options available). Throughout the duration, your monthly payments will be lower than the cost of that same electricity if purchased from your energy supplier at today’s rate*. This enables you to make huge savings from the outset and protects you against increasing energy prices. Additionally, you would be the beneficiary of any available feed-in incentives. Futhermore – there is a production guarantee for the duration of the contract. This means that if the system produces less than guaranteed, you will be reimbursed for the underperformance – a risk-free arrangement for you. Who installs the system? After completing a thorough analysis of the premises and current electricity usage, one of our trusted partners will install the PV system on the roof of your premises to the highest specification. *Based on consumption remaining as per the original calculations in the quote and the accuracy of data provided by you.
4 Production guarantee 4 No upfront investment 4 No ongoing maintenance costs
4 Immediate savings 4 Protection against rising electricity costs 4 Go green!
‘Fronius has partnered with some of the UK’s biggest brands to deliver financial savings, carbon reductions and energy independence.’ What products are used? High-quality engineering drives everything we do, so you can rest assured you’ll be getting the highest-quality products from the very best manufacturers. Who maintains the system? There are no ongoing maintenance costs, this is all included. Once installed, you don’t need to worry about maintenance or insurance of the system throughout the duration of the lease. The message here is clear: Don’t miss out on the benefits of photovoltaics for your business because you have investment priorities elsewhere right now. l Find out how much you could save now by calling 01908 512300 or emailing info-uk@fronius.com
Who are Fronius? Headquartered in Austria and established almost 75 years ago, the company has over 1,200 granted patents and over 3,800 employees worldwide. In the UK, Fronius has a large Technology Centre in Milton Keynes that houses their warehouse, technical support team, classrooms for product training, product showroom and offices. The vision of the company is ‘24 Hours of Sun’ – with the goal to create a future where 100 per cent of the energy needs of the planet come from renewable sources. Dedicated to building products that will last a lifetime in the harshest conditions, all Fronius products go through extensive tests. Its high standards have named them the quality leader in solar electronics since 2002. CarDealerMag.co.uk | 91
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
EML has come on – do I have to refund?
Q
I sold a five-year-old Mercedes E-Class three weeks ago and the customer has complained about an engine management light coming up on the dash. We did a pre-delivery inspection on the vehicle and put on two new tyres to get it to pass the MOT. It has covered 65,000 miles and the customer has added 1,900 miles in those three weeks but now wants to reject the vehicle under the Consumer Rights Act 2015. He says he has taken advice and is entitled to a full refund under ‘the 30-day rule’. He says he will claim for loss of earnings unless I refund him in full within 24 hours. Firstly, if he is suggesting that he wants to claim for loss of earnings, then it’s likely the customer is using the vehicle for business purposes. The type of car and the heavy mileage in such a short space of time suggests he may be using it as a private taxi. If that is the case, then he is a business customer and not a consumer,
meaning the Consumer Rights Act 2015 does not apply. Only consumers are entitled to the 30-day right to reject as set out in the Consumer Rights Act. As your customer is using the car for business, their rights are contained in the Sale of Goods Act and there is no ‘30-day rule’ in that. That being the case, they cannot reject for a full refund, regardless of any issue. The next thing to consider is whether the vehicle is of satisfactory quality. Until we know what is wrong with it, though, we can’t possibly decide. However, as the vehicle is five years old with 65,000 miles on the clock, it is not expected to be perfect. It will have wear and tear and things will go wrong at its age and mileage, and it is not always the dealer’s responsibility to put it right. An EML is unlikely to make such a vehicle not of satisfactory quality, so a refund is almost certainly out of the question.
ADVICE
A
He may be entitled to a repair but not if the item is wear-related and not if we can prove the issue wasn’t present at the point of sale. This is where your PDI and the MOT come into play. They are both strong evidence that the EML wasn’t present at the point of sale. The customer may try to claim that the EML is related to a fault that was developing at the point of sale. However, having driven 1,900 miles in three weeks, this is also unlikely, so he may well be entitled to no help from you at all. As a matter of good customer service, you may want to offer to inspect the vehicle, but you may well have no legal obligation to do so in these particular circumstances. The danger if you don’t offer to get it in and inspect it is that he takes it to a main dealer for a health check and they flag up all sorts of recommendations that in the customer’s head become entitlements rather than desirables. That can start a whole new argument, but we can help you defend that one too.
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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.
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Exclusive 10 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.
A key issue
Q
We have had a customer complain that one of the two keys that we supplied with their car isn’t working. We didn’t advertise it as having two keys. Where do we stand? Clearly, if an advertisement reads that a car comes with two keys, then each one must be fully functioning. Many people assume that cars come with two keys even when they aren’t mentioned in any advertising. In an ideal world, the best thing to do is to mention that the vehicle only comes with one key, as it may be considered a misleading omission under the Consumer Protection from Unfair Trading Regulations. On the other hand, it may not be viewed as such an omission in that the presence or absence of a second key isn’t likely to change the transactional decision of a consumer when deciding whether or not to buy the vehicle. We’d be inclined to take the view that if a second key isn’t mentioned then it can’t be assumed to exist. But it is always advisable to state the number of working keys that come with any vehicle. Only a court can ultimately decide though!
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‘For the money, Lawgistics are amazing – they act as a great HR department for us’ NO matter what side of the dealership or aftersales industry your business operates on, Lawgistics can serve as your firm’s HR team, and are quick and efficient whenever you call – that was the message our Member of the Month was keen to relay when Car Dealer spoke to her recently. We chatted to Jade Bardsley of Motorsave, an independent garage in Swinton, Salford. The family-run firm has been operating for more than 30 years, and currently serves as an official Ford service centre. Bardsley, the firm’s account manager, said Motorsave had been benefiting from its Lawgistics membership for more than a decade and believed the service was vital on a regular basis. ‘For us, it’s an everyday thing. I have no HR personnel here, so for us the subscription is invaluable. ‘You pay it in, and you’ve not got to worry about it then. If you employed an HR person, they could be off or ill, so using Lawgistics instead means I can just pick up the phone anytime. ‘Also, we’ve employed
apprentices for the past 10 years, so it’s great to make sure we’re legal and doing everything right with them, too. ‘For the money, Lawgistics are just amazing. I haven’t got the desk space to take on more admin staff at the moment, even if I wanted to. ‘Lawgistics open at 9am, and I can ring at 9.02 and say, ‘‘I have an issue. I have a member of staff with this issue’’ and they’ll ring you back and they’ll get a case going. ‘It’s that efficiency. If you’re a specialist or a smaller garage, I don’t see why you wouldn’t want that.’ Bardsley also said that Lawgistics had taken the weight off her shoulders when the need for an employee handbook arose. ‘When we wanted to put a company handbook in place, they did it all for us,’ she said. ‘They sat down with the MD and myself and put it all together. ‘I wouldn’t have had the time or the expertise to do that big document. As the business has grown, it’s proved invaluable time and time again.’ Adam Weller
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LAWGISTICS’ Basic membership – which you receive as a member of Car Dealer Club – is a cracking deal, but what if you need something that has extra clout? Larger dealer groups or a dealer embroiled in a big legal battle may require some more firepower, and the good news is that club members get discounts on Lawgistics’ other packages. You’ll receive a £100 discount off the Small Business package (normally £795) – perfect for sole traders, a partnership or a small dealer group – and £250 off the Professional package (normally £1,595). This is ideal for franchises, a dealer group or a car supermarket and covers all relevant legal areas and documentation. There really is a package for everyone with Lawgistics.
To join go to cardealerclub.com or call 023 9252 2434 and speak to one of the Car Dealer team Book an appointment with Paragon’s motor finance team and get £50* At Paragon, 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 could help you and your customers get a better deal. Book your £50* appointment now by calling us on 0345 149 7777. * Terms, conditions and eligibility rules apply. Visit cardealerclub.com/#benefits for more details.
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CarDealerMag.co.uk | 93
Data file.
Thestatistics
| SMMT SALES DATA | TAKING STOCK | NEGATIVE EFFECTS
Triple whammy leads to new car registrations declining in November
S
talling consumer confidence, WLTP-based supply issues and model replacements all combined to negatively affect new car sales in November, according to the Society of Motor Manufacturers and Traders. The market declined by three per cent with 158,639 units registered. In line with recent trends, demand for petrol and alternatively fuelled vehicles (AFVs) rose 3.5 per cent and 24.6 per cent respectively, but failed to offset a 16.7 per cent fall in the number of diesel cars registered. While fleet and private registrations fell in turn by 0.7 per cent and 6.4 per cent, business sales rose 8.6 per cent, though the latter make up only 3.1 per cent of the market. In the year-to-date, more than 2.2 million buyers have taken advantage of an increasingly diverse range of models, including ever more zero- and low-emission vehicles, as manufacturers continue to invest in technologies to produce the cleanest vehicles ever made. The market was down 6.9 per cent on the first 11 months of 2017, but is in line with industry expectations given current challenging conditions.
Mike Hawes, SMMT chief executive, pictured, said: ‘Model and regulatory changes combined with falling consumer confidence conspired to affect supply and demand in November. ‘The good news is that, as supply constraints ease, and new exciting models come on sale in the months ahead, buyers can look forward to a wide choice of cutting-edge petrol, diesel and electrified cars.’ Sue Robinson, director of the National Franchised Dealers’ Association, said: ‘The new car market saw a marginal decline in November and remains in line with annual forecasts. ‘Going forward, when short-term challenges are overcome, the market is expected to see the positive impacts. ‘The trend in pure electric and plug-in vehicles sales is encouraging. Consumer appetite is increasing and, as supply improves, we expect electric vehicles’ market share to continue to grow. ‘Franchised retailers are fully embracing the latest fuel types as recent joint initiatives between industry and government demonstrate. Addressing
the issues affecting the development of the most modern and efficient forms of transportation and ensuring accurate consumer information are franchised retailers’ priorities. ‘We look forward to December’s figures which will allow us to understand the full picture of 2018’s new car market.’ James Fairclough, CEO of AA Cars, said: ‘In truth, we had hoped that November’s figures would be slightly stronger. However, we are not overly surprised as the run-up to Christmas is a traditionally muted time for the industry. ‘There are also other factors that have caused new car registrations to fall, including the VED upheaval, the introduction of new emissions regulations and the confusion over fuel types – not to mention the uncertainty surrounding Brexit, which may well be causing people to delay big-ticket purchases. However, we are optimistic that this bottleneck will clear soon as we expect consumers to take advantage of compelling finance deals in the new year.’
SMMT sales data Nov/year to date
5
Top
Most-improved manufacturers in November
Chevrolet +200% MG +95% Mitsubishi +64% Dacia +52% Volvo +44%
5
Bottom
Worst-performing manufacturers in November
Infiniti -81.3% DS -81.1% Porsche -77% McLaren -55% Maserati -44%
A great month for MG as record-breaking figures recorded MG once again achieved recordbreaking new car registration figures across its growing dealer network in November. The iconic British brand achieved another record, with an outstanding 921 new car registrations, up 95 per cent on the previous year. Year-to-date, MG has more than 94 | CarDealerMag.co.uk
doubled its sales volume, with registrations increasing by 110 per cent versus 2017. The significant MG growth figures come in the context of a seven per cent overall market drop, further highlighting the brand’s impressive achievement. MG’s growth strategy is based upon new car launches and dealer
network development with recent appointments to the network including Bushey Heath Garage and Richmond Motor Group. Daniel Gregorious, head of sales and marketing at MG Motor UK, confirmed: ‘November was another great month for MG.’
Kia
Suzuki
+15% Marque
November 2018
November 2017
2018
2017
% market share
-16% Year-to-date (YTD)
% market share
% change
2018
% market share
2017
% market share
% change
Abarth
344
0.22
366
0.22
-6.01
5,186
0.23
4,169
0.17
24.39
Alfa Romeo
249
0.16
391
0.24
-36.32
3,903
0.18
4,693
0.20
-16.83
Alpine Aston Martin Audi Bentley BMW
9
0.01
0
0.00
0.00
137
0.01
0
0.00
0.00
86
0.05
75
0.05
14.67
1,378
0.06
1,393
0.06
-1.08
6,841
4.31
12,077
7.38
-43.36
137,429
6.18
164,311
6.88
-16.36
115
0.07
136
0.08
-15.44
1,461
0.07
1,631
0.07
-10.42
12,821
8.08
12,781
7.82
0.31
160,448
7.22
161,630
6.77
-0.73
6
0.00
2
0.00
200.00
38
0.00
66
0.00
-42.42
Citroen
2,872
1.81
2,849
1.74
0.81
47,608
2.14
49,275
2.06
-3.38
Dacia
2,237
1.41
1,466
0.90
52.59
22,279
1.00
24,166
1.01
-7.81
100
0.06
530
0.32
-81.13
4,889
0.22
8,805
0.37
-44.47
Fiat
2,530
1.59
1,914
1.17
32.18
33,675
1.51
42,830
1.79
-21.38
Ford
Chevrolet
DS
14,666
9.24
18,095
11.06
-18.95
237,589
10.69
271,855
11.38
-12.60
Honda
2,970
1.87
3,523
2.15
-15.70
49,917
2.25
51,269
2.15
-2.64
Hyundai
4,821
3.04
6,509
3.98
-25.93
85,916
3.86
88,377
3.70
-2.78
Infiniti
38
0.02
204
0.12
-81.37
725
0.03
3,456
0.14
-79.02
Jaguar
2,716
1.71
2,654
1.62
2.34
34,715
1.56
33,535
1.40
3.52 -6.16
467
0.29
347
0.21
34.58
5,742
0.26
6,119
0.26
Kia
6,916
4.36
5,978
3.66
15.69
91,954
4.14
89,449
3.75
2.80
Land Rover
6,339
4.00
6,241
3.82
1.57
73,585
3.31
78,467
3.29
-6.22
Lexus
663
0.42
775
0.47
-14.45
11,985
0.54
11,898
0.50
0.73
Lotus
15
0.01
14
0.01
7.14
241
0.01
268
0.01
-10.07 -24.24
Jeep
69
0.04
124
0.08
-44.35
1,194
0.05
1,576
0.07
2,522
1.59
2,091
1.28
20.61
37,584
1.69
37,523
1.57
0.16
23
0.01
52
0.03
-55.77
600
0.03
544
0.02
10.29
11,391
7.18
12,065
7.38
-5.59
160,873
7.24
170,543
7.14
-5.67
MG
921
0.58
472
0.29
95.13
8,399
0.38
3,987
0.17
110.66
Mini
5,269
3.32
6,094
3.73
-13.54
59,810
2.69
61,039
2.56
-2.01
Mitsubishi
1,843
1.16
1,123
0.69
64.11
19,434
0.87
14,865
0.62
30.74
Nissan
5,710
3.60
7,823
4.78
-27.01
97,343
4.38
143,397
6.00
-32.12
Peugeot
5,270
3.32
5,073
3.10
3.88
76,280
3.43
78,092
3.27
-2.32
Maserati Mazda McLaren Mercedes-Benz
Porsche
264
0.17
1,151
0.70
-77.06
11,226
0.50
13,015
0.54
-13.75
Renault
4,779
3.01
4,066
2.49
17.54
58,628
2.64
65,916
2.76
-11.06
Seat
5,352
3.37
3,947
2.41
35.60
60,058
2.70
52,282
2.19
14.87
Skoda
6,197
3.91
5,117
3.13
21.11
69,396
3.12
73,325
3.07
-5.36
Smart
488
0.31
527
0.32
-7.40
7,247
0.33
9,867
0.41
-26.55 -23.37
SsangYong
197
0.12
234
0.14
-15.81
2,643
0.12
3,449
0.14
Subaru
145
0.09
216
0.13
-32.87
2,948
0.13
2,433
0.10
21.17
Suzuki
2,119
1.34
2,526
1.54
-16.11
36,365
1.64
38,014
1.59
-4.34
6,156
3.88
5,953
3.64
3.41
98,986
4.45
96,797
4.05
2.26
Vauxhall
11,560
7.29
10,343
6.32
11.77
164,653
7.41
181,834
7.61
-9.45
Volkswagen
15,772
9.94
13,985
8.55
12.78
187,123
8.42
193,117
8.09
-3.10
Volvo
4,435
2.80
3,068
1.88
44.56
46,479
2.09
42,944
1.80
8.23
31
0.02
53
0.03
-41.51
662
0.03
655
0.03
1.07
305
0.19
511
0.31
-40.31
4,327
0.19
5,268
0.22
-17.86
158,639
100
163,541
100
-3.00
2,223,058
100
2,388,144
100
-6.91
Toyota
Other British Other imports Total
Figures supplied by SMMT
CarDealerMag.co.uk | 95
LCV news.
Fullyloaded
| LIGHT COMMERCIAL VEHICLES | FLEET | REVIEWS |
APPOINTMENT
LONELINESS
Jon is brought on board to develop CV sector strategy
Canine company eases the ‘ruff’ life of drivers T
BCA has appointed Jon Gilbert as business development director for commercial vehicles, with a brief to develop its end-to-end strategy in the CV sector and enhance processes around the wider customer experience for commercial vehicles at the firm. Gilbert brings a wealth of experience to the position gained in the vehicle leasing and telematics sectors. Before joining BCA, he held the role of operations director for Vanarama and was group director of customer services for telematics supplier Masternaut from 2012 to 2014. Gilbert has also held senior management positions with ING/Alphabet and LloydsTSBAutolease. He said: ‘BCA is uniquely placed to deliver a comprehensive range of linked services to the commercial vehicle sector through the combined infrastructure of portside operations, regional defleet facilities, vehicle logistics and preparation centres and a suite of remarketing channels, including physical, hybrid and digital exchanges.’ Greg Taylor, BCA’s corporate commercial director, said: ‘Jon’s extensive experience across a broad range of disciplines in the commercial vehicle sector will prove very useful.’ 96 | CarDealerMag.co.uk
he UK’s van operators are battling loneliness by taking their dogs on the road with them for company, with more than 200,000 van drivers hosting canine companions on any given day. That’s according to the MercedesBenz Vans Business Barometer, which monitors the opinions of more than 2,000 van drivers and owners. It says life on the road can be lonely for professional drivers, with the average driver spending more than 17 hours alone and over a third (35 per cent) experiencing at least 20 hours in solitude. So with mental health and driver well-being taking more of a focus than ever before, drivers are turning to the ‘Van Man’s Best Friend’ to raise their spirits, with one in five agreeing that their dogs have had a direct positive impact on their mental health. More than half (52 per cent) of van operators who take their dogs with them throughout their work days say they feel much happier (52 per cent) and more relaxed (45 per cent). A third (33 per cent) say their dog simply helps them get through their day, and more than half (53 per cent) said that having their dogs with them had actually assisted in winning new business.
Nearly two-thirds (65 per cent) of UK van drivers and operators own at least one dog, with 36 per cent of them having more than one. And proving that the UK really is a nation of dog lovers, 38 per cent of road-going dogs are from rescue centres. Steve Bridge, managing director of Mercedes-Benz Vans UK Ltd, said: ‘It’s great that our canine friends can join the nation’s hard-working van
operators in their vehicles, providing much-needed company along the way. I wish I could take my Westie to work with me!’ However, he added, it was important to remember that dogs needed to be suitably restrained according to the Highway Code. ‘A seatbelt harness would be a good investment to ensure that both the driver and the dog are safe and secure,’ he said.
Top-selling LCVs in November Ford Transit Custom Mercedes-Benz Sprinter Ford Transit Volkswagen Transporter Vauxhall Vivaro
3,645 3,348 2,326 1,520 1,473
Source: SMMT
Ford Transit Connect Ford Ranger Citroen Berlingo Peugeot Partner Renault Trafic
1,176 1,163 1,159 967 874
LCV registrations, p98
‘Choosing the right LCV to fulfil the needs of a business is not a simple task.’ Steve Botfield takes a look at a digital tool that simplifies spec comparisons p99
Sliding doors WITH CRAIG CHEETHAM
A look at the world of buying and selling vans and pick-ups
V
Shortage of drivers is helping to boost sales – crazy but true!
an sales are holding steady against a backdrop of economic uncertainty, but the question on many people’s lips is: ‘When will the bubble burst?’ After all, with Brexit on the horizon, a slowdown in new car sales, confusing WLTP legislation and new VED rates for LCVs allegedly looming, it would be easy to think that sales could be about to fall off a cliff. However, while there are challenges across the automotive industry, there’s one reason why vans are holding steady – and the clue is in the numbers. In 2018, sales of large vans in the 3.5- to sixtonne sector have risen at an incredible rate – by almost a third year-to-date, with October sales of jumbo vans 61 per cent greater than they were in the corresponding month last year. The reason? A shortage of drivers. Suggesting van sales are increasing because there are fewer people to drive them really isn’t gobbledegook. Van drivers aren’t the problem. Truck drivers, on the other hand, are a far greater conundrum... Britain is staring into the face of a huge driver shortage, with the average age of a lorry driver being 53. There are fewer young drivers coming into the industry. Add the fact that health and eyesight issues are causing more drivers to hang up their driving gloves before they reach retirement age and the predicament becomes even more obvious. Yet we live in a society that is becoming increasingly used to getting what we want when we want it – and often delivered directly to our door. Without enough truck drivers, though, our needs and desires could be under threat – there’s no point buying things online if there’s nobody around to deliver them, after all. All of this has caused the logistics industry to have a major rethink. Rather than cast aside our concerns about getting what we want, the sector has reinvented its distribution models. Instead of paying one truck driver £45k a year to move goods around (and yes,
that’s not an unrealistic target salary), operators can spend the same on three van drivers, each driving a different van that, cumulatively, will carry the same amount as an articulated wagon. The idea makes even more sense when you look at how three vans can operate in lieu of one lorry. They can each go in a different direction, allowing logistics managers to regionalise delivery routes, and in many cases the vans can also drop their cargo directly at the doors of the recipients, rather than at a distribution hub that would require more vans to redistribute everything again later on. It’s no wonder, then, that the XXL van market is booming – although vans over 3.5 tonnes still require a C1 licence, which nowadays means additional testing over a car. Most drivers who passed their test after January 1, 1998 can only drive a van of up to 3.5 tonnes – and that’s the mass in service, not the actual weight of the van, so payload limits must be obeyed. However, as the home delivery market continues to grow – almost explosively in recent years – larger medium vans are also seeing strong sales figures. Bigger Ford Transits, Mercedes-Benz Sprinters, Volkswagen Crafters and Iveco Dailys are good news for dealers of both new and used vans right now, and it’s an area that shows no signs of slowing down. Indeed, there’s one theory that supports the market for larger vans getting bigger still. In the event of a no-deal Brexit, or one that fails to realise the government’s ambitions around ‘frictionless trade’, the challenges of getting road freight across borders could be such that pan-European hauliers swap their trucks for smaller vehicles, which require less paperwork and certification to move between countries, meaning fewer delays. If that happens, then a surge in the van market to keep the import and export trade alive isn’t beyond the bounds of possibility – an irony when you consider that Brexit itself is the single biggest issue that’s causing uncertainty in the automotive industry right now…
‘The idea makes even more sense when you look at how three vans can operate in lieu of one lorry.’
Craig Cheetham is an experienced automotive journalist with specialist knowledge of the LCV sector.
Turn over the page for more LCV stories CarDealerMag.co.uk | 97
LCV news. LATEST STATISTICS
Demand up as more than 29,000 new vans and pick-ups join roads THE new LCV market grew by 9.6 per cent in November, as more than 29,000 vans and pick-ups joined UK roads, according to the latest figures from the SMMT. This increase – totalling 29,035 – represents 2,549 more pick-ups and vans registered in the month compared with November 2017.
Demand for pick-ups and 2.5- to 3.5-tonne vans increased by 15.8 per cent and 12.9 per cent respectively, as new model introductions took off, counteracting falls in other segments of the market. Small and medium vans experienced declines, however, both falling by 4.1 per cent. Throughout 2018, the market has seen the
number of new registrations fluctuate with fleetbuying cycles and business uncertainty. Demand for new LCVs is broadly stable in the year to date, down 0.7 per cent compared with the same period last year, with 331,776 new vans and pick-ups registered in the UK – 2,357 fewer than the first 11 months of 2017.
Registrations of new commercial vehicles less than 3.5 tonnes Marque
November 2018
November 2017
2018
2017
% market share
% market share
Figures supplied by SMMT
Year-to-date (YTD) % change
2018
% market share
2017
% market share
% change
Ford
8,732
30.07
8,748
33.03
-0.18
116,392
35.08
108,525
32.48
7.25
Volkswagen
3,680
12.67
3,413
12.89
7.82
39,512
11.91
38,328
11.47
3.09
Peugeot
2,282
7.86
2,337
8.82
-2.35
31,733
9.56
33,932
10.16
-6.48
Mercedes
4,565
15.72
3,096
11.69
47.45
28,724
8.66
29,982
8.97
-4.20
Vauxhall
2,040
7.03
2,313
8.73
-11.80
25,795
7.77
26,514
7.94
-2.71
Citroen
2,184
7.52
2,040
7.70
7.06
24,358
7.34
25,490
7.63
-4.44
Renault
1,507
5.19
1,056
3.99
42.71
14,214
4.28
17,690
5.29
-19.65
Nissan
1,110
3.82
917
3.46
21.05
12,603
3.80
14,679
4.39
-14.14
Mitsubishi
526
1.81
534
2.02
-1.50
9,294
2.80
9,630
2.88
-3.49
Toyota
619
2.13
534
2.02
15.92
9,117
2.75
8,815
2.64
3.43
Fiat
752
2.59
691
2.61
8.83
8,082
2.44
10,220
3.06
-20.92
Isuzu
306
1.05
327
1.23
-6.42
4,385
1.32
5,003
1.50
-12.35
Iveco
222
0.76
212
0.80
4.72
2,630
0.79
2,709
0.81
-2.92
Renault Trucks
94
0.32
96
0.36
-2.08
1,304
0.39
1,171
0.35
11.36
Land Rover
152
0.52
0
0.00
0.00
1,296
0.39
20
0.01
6,380.00
MAN
87
0.30
58
0.22
50.00
615
0.19
58
0.02
960.34
Isuzu Trucks
44
0.15
39
0.15
12.82
579
0.17
356
0.11
62.64
LDV
35
0.12
44
0.17
-20.45
445
0.13
351
0.11
26.78
SsangYong
84
0.29
16
0.06
425.00
435
0.13
395
0.12
10.13
Fuso
14
0.05
10
0.04
40.00
145
0.04
141
0.04
2.84
Dacia
0
0.00
4
0.02
0.00
79
0.02
61
0.02
29.51
Hyundai
0
0.00
0
0.00
0.00
35
0.01
33
0.01
6.06
Great Wall
0
0.00
1
0.00
0.00
4
0.00
30
0.01
-86.67
29,035
100.00
26,486
100.00
9.62
331,776
100.00
334,133
100.00
-0.71
Total light CV
Registrations of new commercial vehicles 3.5 tonnes to 6.0 tonnes November 2018 Marque
2018
Peugeot Ford
% market share
November 2017 2017
% market share
Figures supplied by SMMT
Year-to-date (YTD) % change
2018
% market share
2017
% market share
% change
196
35.64
107
22.38
83.18
2,559
30.69
667
10.42
283.66
45
8.18
83
17.36
-45.78
1,982
23.77
1,933
30.20
2.53 9.03
Fiat
103
18.73
115
24.06
-10.43
1,594
19.12
1,462
22.84
Mercedes
120
21.82
111
23.22
8.11
1,502
18.01
1,486
23.22
1.08
Iveco
50
9.09
37
7.74
35.14
344
4.13
392
6.13
-12.24
Citroen
18
3.27
8
1.67
125.00
122
1.46
82
1.28
48.78
Renault
7
1.27
8
1.67
-12.50
71
0.85
65
1.02
9.23
Vauxhall
0
0.00
4
0.84
0.00
62
0.74
135
2.11
-54.07
Volkswagen
4
0.73
5
1.05
-20.00
59
0.71
124
1.94
-52.42
MAN
4
0.73
0
0.00
0.00
25
0.30
0
0.00
0.00
Isuzu Trucks
3
0.55
0
0.00
0.00
15
0.18
19
0.30
-21.05
Renault Trucks
0
0.00
0
0.00
0.00
2
0.02
2
0.03
0.00
Nissan Total heavy CV
98 | CarDealerMag.co.uk
0
0.00
0
0.00
0.00
1
0.01
33
0.52
-96.97
550
100.00
478
100.00
15.06
8,338
100.00
6,400
100.00
30.28
CV Spotlight.
...in association with Cap HPI
Saving leasing companies time, energy and money Steve Botfield explains how a new digital tool is helping overcome the headache of spec comparisons.
O
ne of the most time-consuming and complex issues facing LCV specialists and fleet operators for many years has been shortlisting and comparing vehicles based on the exact needs of the end user. Now, thanks to an innovative online tool, this is all set to change. LCV Chooser, from Cap HPI, has been launched to help simplify the process and allows users to understand the key differences in specification across all brands, utilising Cap HPI’s comprehensive vehicle datasets. The digital tool was developed to enable users to search quickly and efficiently and compare technical and specification data against every LCV currently available on the market. Although designed as a standalone tool, it may be integrated within existing fleet management systems. In addition to inputting the basic requirements such as vehicle type, seating capacity, weights and dimensions, LCV Chooser allows search criteria to be narrowed down. Variables include power output, key standard equipment and Euro emission standards. Results are returned quickly, saving valuable time. Even VAT and VED information is displayed, providing clarity to users and their customers. Choosing the right LCV to fulfil the needs of a business is not a simple task, with more than 7,000 derivatives from 27 manufacturers to select from. The new LCV Chooser is undoubtedly an invaluable data-based resource designed to remove these previous pain points. The most important consideration in picking a
vehicle is that it is fit for purpose, for both today but also the future in line with changing business needs. There are multiple areas to think about when choosing a vehicle, including usage, load area capacity, vehicle size and weight, fuel type and likely distances to be covered in the van. One other key area to consider is the duty of care to employees, with organisations needing to ensure that the environment the driver works in is adequate for the length of time that they are behind the wheel – items such as air conditioning, telephone connectivity, as well as the other driver aids that have become more prevalent in modern working vehicles. Comparing the specifications of LCVs
has proved itself a real headache for leasing companies for years, often resulting in separate commercial vehicle teams being established. Our research showed that decisions need to be made across a wide range of factors that shouldn’t close off choice too early. LCV Chooser returns detailed comparisons at the push of a button, providing greater choice and the most accurate LCV vehicle data combined with tailored preferences. Ultimately, it saves operators a lot of time, energy and money and also fully complements the sales process. For more information and to request a demonstration, please visit http://extras.cap-hpi.com/lcv-chooser
Who is Steve Botfield? Steve is a specialist in the commercial vehicle world, with more than 44 years’ experience of the 190mmx60mm.pdf 1 03/10/2018 16:29:07 motor industry, covering all aspects of it. He joined Cap HPI in April 2016, where he is commercial vehicles editor.
C
M
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CM
lcv chooser Enables accurate specification to match to user requirements
MY
Improves customer service by ensuring vehicles are fit for user purpose
CY
Increases efficiency and reduces operating costs
Compare
CMY
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http://extras.cap-hpi.com/lcv-chooser CarDealerMag.co.uk | 99
Workshop.
Aftermarket
SERVICING & REPAIRS | PRODUCT NEWS | PEOPLE & PLACES
DISQUALIFICATIONS
Garage run illegally for wife and ex-wife
TWO garage bosses have been banned from running a company after they allowed a disqualified director who was their husband and ex-husband to run their business. Janice Rogers, 61, and Elizabeth Dagg, 70, both from Morpeth, Northumberland, were directors of Auto Testing Ltd (ATL), whose registered address was c/o Northpoint, Pilgrim Street, Newcastle upon Tyne. There was also a third boss, Stewart Rogers. But the 72-year-old, also of Morpeth, had been disqualified for five years in January 2011 in relation to his conduct as director of a separate company, Northern 4 x 4 Centre Ltd, and shouldn’t have been managing the business. ATL entered into voluntary liquidation in 2016 and the Insolvency Service was tipped off about his involvement. Investigators found evidence showing that he had been running ATL and Janice Rogers, his current wife, and Elizabeth Dagg, his former wife, had been aware of his disqualification. Business secretary Greg Clark accepted a disqualification undertaking from Rogers after he admitted acting as director while disqualified. The ban took effect on November 7, 2018 and lasts for 11 years. Disqualification undertakings were also accepted from Janice Rogers and Dagg after they admitted allowing Stewart Rogers to act as director while disqualified. Their bans last for five years. 100 | CarDealerMag.co.uk
OPPORTUNITIES
Amber add-on signals boost in follow-up work by JOHN BOWMAN john@blackballmedia.co.uk
A
Norwich Skoda dealership has seen an 86 per cent rise in approved work thanks to the addition of CitNOW’s Amber Follow-Up add-on. The add-on lets service advisers at Robinsons Skoda easily schedule an amber work follow-up with the customer based on issues identified during an eVHC. By setting a follow-up date in the CitNOW Dashboard when the customer collects their vehicle, an automatic email and the original eVHC video can be sent to the customer when the amber work may be nearing red. The amber follow-ups retain the service adviser details and original workshop video in the email to keep the reminder personal. By automating the process, Robinsons Skoda staff have saved time following up with amber opportunities and secured more work that might previously have been lost. Owing to CitNOW’s training, the way in which ‘amber’ and ‘red’ work is identified remains objective across all staff members, ensuring a consistent level of service for customers of Robinsons Skoda.
Robinsons Skoda in Norwich is enjoying a huge rise in approved work Alistair MacFarlane, aftersales manager at the dealership, said: ‘It’s a tool which makes our lives easier. For example, even if the front-end receptionists don’t book in a customer’s next visit on the day, they are able to easily do so at a later date, thanks to the tool’s intuitive interface. ‘Not only are we securing more amber work, but all the appointments have a good level of detail to them, so we can act readily
on current work. The output is great and it eases the pressure on staff – and all this for relatively little extra spend.’ The Amber Follow Up add-on was easily added to Robinsons Skoda’s Workshop application for a small monthly fee, and required little additional staff training. Robinsons Skoda has used CitNOW Workshop since 2016 before opting for the additional amber follow-up service.
Trade fair enjoys 15 per cent visitor rise THE UK was among the 43 exhibiting nations and regions at the 14th Automechanika Shanghai, which saw a 15 per cent rise in attendees over 2017’s event – reaching a figure of 150,568. A spokesman for Asia’s largest automotive trade fair, which had 6,269 exhibitors – up
from 6,051 last year, said it not only helped to create new channels of communication with Chinese firms but also allowed for more business exchanges involving other international exhibitors and buyers. Picture: Messe Frankfurt Traders-Link (Beijing) Co Ltd
INITIATIVE
Interest-free option on RAC warranties
AN interest-free option for customers on all sales of RACbranded warranties is being made available across the RAC Dealer Network. Buyers will be given the opportunity to pay for their RAC warranty over 10 months of equal payments via direct debit. Sean Kent, pictured, sales director at the RAC Dealer Network, which partners with Assurant in the warranties and aftersales sector, said: ‘This is all about increasing the affordability of our products for used car customers, especially at a time when we are seeing an increasing appetite for longer and more comprehensive warranties. ‘Where this kind of offer has been made previously, we have found that it has allowed more buyers to access the level of cover that they desire.’ The 1,360-strong RAC Dealer Network is aiming to add about 100 new dealers by the end of 2018 and Kent said initiatives such as the interest-free offer were an effective tool when it came to raising their profile. ‘Our network has seen substantial growth over the last few years, and much of that success has been based on delivering the right products, training and marketing support. ‘The interest-free initiative is the latest example and we have a range of other plans in the pipeline for the next few months that we believe will be similarly effective.’
Workshop controller Ashley Walton, left, and her namesake service adviser colleague
COINCIDENCE
Two Ashley Waltons – what are the chances? T
he chances of meeting someone who has the same name with the same spelling are pretty slim, but for two members of Lookers aftersales staff it’s an everyday occurrence! Ashley Walton, 32, from South Shields, joined the company four and a half years ago, when she took on the role of service adviser at the Parsons Road service and parts department in Washington, when it was part of Jennings Motor Group. A recent promotion to workshop controller resulted in the recruitment of a new service adviser who – by complete coincidence – is also called Ashley Walton. The ‘new’ Ashley, 40, from Peterlee in County Durham, couldn’t believe it when she was
by DAVE BROWN @CarDealerDave
offered the role of service adviser and found out that she shared the same name as her predecessor. ‘The first thing we did was check to see if we were related, but it turns out that it’s just the name we share,’ she said. ‘In my entire life and career, I’ve never come across anyone with the same name, let alone the same spelling.’ As service adviser, she is responsible for liaising with existing and potential customers, arranging and confirming service and MOT bookings, processing orders and invoicing. Meanwhile, her namesake’s promotion to workshop
controller entails working alongside service manager June Appleyard and a team of seven Ford- and Kiaapproved technicians, as well as two technician apprentices. Commenting on the unusual coincidence, June said: ‘It’s a little bit confusing at times, especially when someone calls out their name and they both answer together, or if a message is passed on and we have to double-check which Ashley they’re referring to, but it’s also become quite amusing.’ To avoid future confusion, workshop controller Ashley has been renamed AJ, a nickname used by family and friends. Lookers acquired the Jennings group in September at a cost of £5.6 million for the entire issued share capital.
Ensure you are ready for Making Tax Digital, says IGA GARAGES are being urged to make sure they are ready for the transition to Making Tax Digital next April. The government initiative aims to end the tax return and transform the tax system by 2020. Any business that is registered for VAT and has a turnover above the VAT registration threshold – currently £85,000 – must comply with it, but according to the Independent Garage Association, a House of Lords report says only 40 per cent of them are aware of it. The IGA says: ‘If you already
use software to keep your business records, check your software provider’s plans to introduce MTD-compatible software. If you don’t currently use software, or your software won’t be MTD-compatible, you’ll need to consider what software is suitable for your requirements. ‘VAT-registered businesses are now able to join the MTD pilot, so instead of waiting until next April, you can get compatible software now and try the new way of submitting your returns.’ CarDealerMag.co.uk | 101
New Year, New Career?
As 2019 fast approaches, is your new year’s resolution to find your dream job? New year, new career isn’t just a phrase. According to a survey by human resource firm Investors in People, over half of UK employees were set to look for a new job in the run up to 2018. One in four employees felt unhappy at work compared to one in three, who said they did at the same point last year. Are you ready to start your job search in 2019? Below, we’ve included a few tips to accelerate the process: Update your CV: You are constantly evolving - your CV should too. Your CV should be updated with any new and relevant information as you develop in your career, and it should be tailored to every job you apply for. Once you’ve got your CV updated, upload it to a niche site like InAutomotive so that employers can find you. Set up job alerts: You can set up numerous job alerts for roles you’re interested in on our website. That way, we can send relevant jobs straight to your inbox. You can also tailor your alerts by job type, job category, salary and location.
Tailor your cover letter: Don’t forget to tailor your cover letter for each application you send. It should show the employer how your skills and experience match the requirements laid out in the job description.
500 new dealership roles added every month
Proof your CV: Don’t forget to check your CV and cover letter for spelling and grammar mistakes – these can really put recruiters off. Searching for a new and improved you in 2019? InAutomotive has over 5,000 automotive roles available, so you’re bound to find a job you love for the New Year. If you’re keen to drive your career forward, simply visit our website at: www.inautomotive.com today.
Organise your 2019 recruitment Check yourself out online: According to a 2018 CareerBuilder survey, 70% of employers use social media to screen candidates during the hiring process. Tidying up your online presence is essential before you start sending out job applications.
Organise your 2019 recruitment from just £199 a month. 102 | CarDealerMag.co.uk
Network on LinkedIn: Make sure you keep your LinkedIn updated. This is an extremely valuable tool for jobseekers, so make the most of it. Show off your key skills and get endorsements from past managers and colleagues.
Take advantage of the additional 50,000 people who visit InAutomotive in January. Whether you’re looking to recruit for car sales or manager roles, Call 01772 639036 and quote “Car Dealer” to receive multiple job postings all year round from just £199 per month.
Visit the UK’s leading automotive job board and apply now at www.inautomotive.com
Sean Speaks.
...in association with Close Brothers Motor Finance
How we can help you make the most of the EV revolution It's time to get to grips with the technology and deal with the misconceptions, says Sean Kemple.
I
saw a recent poll by a specialist car retailer where one of the questions asked was ‘On a scale of one to five, how much do you like electric vehicles?’ In the answers, 39.5 per cent of the respondents were sitting on the fence with a score of three, while at one end of the scale 16.4 per cent said they loathed them and only 7.8 per cent said they loved electric vehicles. Interestingly, in a follow-up question, respondents were asked, ‘How bright is the future for alternative/electric supercars?’ This time an overwhelming 75 per cent of respondents stated the future was ‘bright/very bright’, with only 3.8 per cent at the other end of the scale saying ‘not bright’. This led me to question how much we are moving forward with the perception of electric and alternatively fuelled vehicles – particularly
TOP TIPS • Appoint an EV subject matter expert on your forecourt to support customers and your team. • Think about how you upskill service departments in the technology, or partner with a service centre that does this already. • Consumer confusion is one of the biggest with demand for alternative fuels being driven by both legislation and customer sentiment. The stats bear this out as adoption so far has been relatively mild. For the year to date we have seen an increase of 0.6 per cent in new electric vehicle sales while the pace is a little faster with plug-in petrol hybrids – up 29 per cent on 2017. So will there be a tipping point at some point soon? Elon Musk, CEO of Tesla, has said: ‘We must at some point achieve a sustainable energy economy or we will run out of fossil fuels to burn and civilisation will collapse.’ That’s compelling for the tipping point. Advances in technology Perceptions are shifting, albeit slowly. For example, we have seen the rise of Formula E, with the fourth season last year seeing two cars used per driver per race due to battery charging, reaching top speeds of 140mph. For the fifth season starting in December, vehicles are predicted to have enough battery power for one race, reaching speeds of 170mph. Car manufacturers continue to use motorsport racing to develop their innovation with battery technology. This has been the norm for many years since the 24 Hours of Le Mans allowed hybrids to showcase the reliability of these vehicles and encourage adoption of the trusty workhorse. Addressing customer concerns Barriers to entry are clearly the main reason we are not seeing adoption at the pace we would expect, with consumers citing range anxiety, cost and infrastructure as the primary concerns. Dealers can help address these concerns with simple fact-finding, asking the right questions to
problems facing the EV sector. How can you help consumer confusion through your vehicle descriptions online? • Install a charging point in your dealership to show consumers how easy it is to charge. • Liaise with a provider of electric charging points to support installation at their home. identify the customers’ needs so they can better position electric vehicles for individuals. Customers can overestimate their anticipated mileage, and in conversations with their dealer realise that a typical electric vehicle range is more than sufficient to serve their regular journeys. The average journey in the UK is 8.7 miles, yet most fully electric vehicles are capable of 100 miles-plus and forecast to increase to 200-plus in the early-2020s. In addition to this, we know most vehicles sit unused for long periods during the day, providing ample charging time if needed. For the cost-conscious there is an emerging used electric vehicle market if a new car is costprohibitive. There are, of course, finance options too, with companies like Close Brothers Motor Finance offering fixed-rate, pay-monthly options to help customers drive the car they want. We have a clear policy for underwriting electric vehicles, and that includes vehicles with owned or leased batteries, to support our dealer partners and their customers. We view this as an important step towards a ‘brighter future’ for electric vehicles and a greener Britain over the long term. Dealers need to be ready for the EV revolution Dealers will be ultimately driven by consumer demand in this space, and we know that is starting to change. Keeping abreast of customer sentiment and adoption of alternative fuels will put dealers in a strong position. Supported by the government, investment in infrastructure is increasing across the UK and developments in technology coupled with the public interest represents a strong future opportunity for dealers to be ahead of the curve. Dealers should ensure they understand the new technology and the common misconceptions that surround electric vehicles so they can provide expert advice and help sell the benefits to their customers of tomorrow. The future begins now.
Sean Kemple is director of sales at Close Brothers Motor Finance, one of the UK’s leading providers of motor finance. The company works with over 8,000 dealers and provides finance for new and used cars, LCVs and motorcycles, caravans and motorhomes. Go to closemotorfinance.co.uk to find out more. CarDealerMag.co.uk | 103
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Market Insight.
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Outside of the franchised retailers, Motorpoint recently issued their results for the six months to September
Franchised retailer groups all down on 2018 opening prices November was a month of stabilisation with a raft of regulatory announcements, says Mike Jones.
I
n November, we saw a stabilisation amongst many of the motor retail stocks as the market absorbed the after-effects of WLTP and the differing public pronouncements from motor retailers. Looking at the year as a whole, all of the franchised motor retailer stocks are now down on their opening prices. Only the thinly traded Caffyns and Marshall, who, according to management, are on track to beat last year’s performance, are less than 10 per cent down. Whilst this reflects the general market performance, the franchised retail groups have been significantly outperformed by some of the wider motor retail stocks, particularly Auto Trader, which is 24 per cent up on the year. Share price performance There was a raft of other regulatory announcements from the companies during November. Whilst most of them continued previously-announced share buy-back programmes to deliver value back to shareholders, we saw a number of other changes. The director changes at Pendragon continued during November, with Richard Laxer, formerly of GE Capital, joining as an independent nonexecutive director. It was one in, one out though as Jeremy King stood down as a non-executive director including his roles as a senior independent director and chair of the audit committee, to be replaced by Mr Laxer. There were a number of share acquisitions by directors at Vertu, in
Share price movement over the past month
Share price movement since the start of 2018
Pendragon
-8.9%
-14.0%
Vertu
1.1%
-26.7%
Lookers
-4.7%
-11.7%
Inchcape
6.6%
-25.7%
Cambria
2.9%
-13.9%
Caffyns
-2.4%
-2.4%
Marshall
26.3%
-6.9%
Motorpoint
-4.5%
-2.3%
BCA
6.7%
4.6%
Auto Trader
7.0%
24.2%
addition to the granting of share options to a number of members of management. Financial performance Following on from the raft of trading announcements in October, we saw more in November and they illustrated the differing fortunes of the listed retail groups. On the back of positive announcements in October, which had failed to stop a slide in the share price, Marshall announced that they expected current-year profits to be ahead of last year. This produced a bounceback in the share price, returning to levels seen in the summer.
Lookers issued a trading update for the period ending September 2018. Trading was deemed positive in the third quarter, against a strong comparative and importantly, even with the impact of WLTP, their outlook for the whole year remained unchanged. Caffyns issued their half-year report, with significant growth in both underlying EBITDA and underlying profit before tax, albeit from low bases in the prior year. Cambria issued their audited preliminary results for 2017/18. Whilst there were drops in underlying EBITDA and operating profit, the group had been through significant change with eight of the group’s 42 franchised outlets either changing franchises or closing in the period. We also had an update from Inchcape on their Q3 performance which was less positive, certainly as far as the UK was concerned. Outside of the franchised retailers, Motorpoint issued their results for the six months to September. They reported operating profit before exceptionals up 15.5 per cent with plans for expansion expected to be announced in the near future. BCA also issued their interim sixmonth results with adjusted operating profit up 13.3 per cent. The star of the show, as reflected by the share price movement, was Auto Trader, which reported strong growth and an operating profit margin of 68 per cent on the back of record growth of new and existing retailer products.
Mike Jones is chairman of dealer profitability specialist ASE plc. You can read his column here every month. CarDealerMag.co.uk | 105
Auctions.
Nun’s Pride came before my fall.
Confessions, p109
AGREEMENT
Cambria extends BCA deal for three years
Pearson
AUCTION STATIONS
Accurate valuation builds customer confidence
W C
ambria Automobiles and BCA have agreed another three-year exclusive remarketing deal. The contract will see around 6,000 vehicles a year sold in weekly sales at Blackbushe. Cambria vehicles are offered with a BCA Assured report and are pre-sale-prepared to a high standard. The majority of vehicles have their V5 and service history present and are provided with a warranted mileage. Cambria operates nationwide, and the recent addition of two Bentley, two Lamborghini and one McLaren franchise have helped diversify the group’s brand portfolio. The company operates at 31 locations representing 46 new car franchises and 16 brand partners. Mark Lavery, chief executive of Cambria
Automobiles, said: ‘BCA has the scale and commitment to innovation to support our business. It combines physical and online channels to deliver a package of remarketing services that suit our needs. We are pleased to extend our relationship with BCA for another three years.’ BCA is supporting the sales programme with a strategic marketing campaign that includes branded e-marketing and online awareness through BCA’s website and Auction View bulletins. Dave Burden, dealer sales director at BCA, added: ‘Cambria continues to go from strength to strength and we are delighted to support the group’s continued growth. ‘This remarketing partnership provides a wide range of high-quality stock to buyers around the UK.’
Thousands raised for children’s hospice SHOREHAM Vehicle Auctions raised £34,000 for The Chestnut Tree House children’s hospice at two special sales. The annual charity auctions for the Arundel hospice saw donations from Yeomans, Tates, Caffyns, Dinnages, Car dealer new strip ad Revised Frosts4cars, Harwoods, Newton Honda,
Dees Croydon, Southern Motor Group and Vanfair. Support also came from Enterprise Rent-A-Car and NextGear Capital. Twentyfive cars were donated, with five from the public. A hospice spokeswoman said: ‘We are incredibly grateful to Shoreham Vehicle 4/4/18 12:01 Page 1 Auctions and their clients and customers.’
Fixed cost buyers premium User friendly website & stock locator. On-line bidding
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106 | CarDealerMag.co.uk
Stuart Pearson is BCA UK’s chief operating officer for remarketing. Visit bca.co.uk or call 0345 600 6644.
Excellent variety of weekly stock from premium sources
The Fleet Auction Group
www.fleetauctiongroup.com
ith January busy for used car sales and competition intensifying for customers’ attention, it’s important for dealers to be able to offer quick and efficient valuations on part-exchange vehicles. It’s also important that this fits seamlessly with existing systems and processes a dealer is expected to use. There are huge benefits from getting the appraisal of a vehicle right the first time. It’s important to make sure customers think and appreciate they are getting the best value for their car. There’s a huge amount of competition in pricing, and customers are far better armed with information when they walk into dealerships, too. BCA Dealer Pro offers a quick and efficient way to manage the part-ex process. Built in consultation with sales professionals, it uses a simple guided process to appraise, image and accurately value vehicles. Once the car’s information is entered into the system, BCA Dealer Pro can offer market values to the user, allowing them to relay accurate and dependable prices to the customer. For non-retail stock, Dealer Pro has already captured the information needed to start remarketing. It can then be sent straight to BCA’s online catalogue. Dealers can maintain a real-time view of their inventory at the touch of a screen as vehicles are uploaded, ensuring no profit opportunities are missed. Should another dealership within the group spot a car that has been uploaded to Dealer Pro, it can get in touch and offer a deal – all in real time. This means that while the customer is still in the building, two deals can take place. The customer gets a fair price and the resulting non-retail partexchange is quickly and efficiently traded with another dealership. Choosing the right tools for the job helps to ensure a consistent approach that will drive sales, build customer confidence and help to close deals profitably. Visit bca.co.uk for more details and make sure no profit opportunities pass you by.
Fleet Car Sales every Tuesday at 1pm & Thursday at 10am Van sales every Wednesday at 10:30am Wheelchair Accessible Vehicles fortnightly, Wednesdays at 10am Truck, Trailer & Plant fortnightly, Wednesdays at 12noon Collection of vehicles 24 hours a day, 7 days a week Purpose built 15 acre auction complex Enclosed and heated auction halls and viewing area Vehicle refurbishment facility The UK’s finest auction restaurant Central UK location (Leicestershire) NAMA Vehicle Grading
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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
Independents and high-volume buyers prepare for the new year Demand was strong for good-quality stock in November, with competitive bidding in-lane and online, reports Stuart Pearson, chief operating officer for BCA’s UK remarketing operation.
B
CA’s Pulse Report shows that average used car values rose by £83 to £9,866 during November 2018 – the third highest figure on record. Year-on-year, the headline figure was up by £462, equivalent to a 4.9 per cent increase in average values – a result reflecting both the steady demand, well-balanced supply and the richer mix of cars available at BCA over the past 12 months. Buyer demand remained strong for good-quality stock, with competitive bidding in-lane and online. Values for fleet & lease and dealer partexchange vehicles remained at near-record levels and well ahead year-on-year, reflecting the longerterm trend BCA has been reporting throughout 2018. Nearly-new vehicle values improved during the month of November. There were good levels of confident trading activity at BCA during November across all sectors, with both high-volume buyers and
independent dealers competing for stock. This has carried on into December as professional buyers look to build stock levels for their retail forecourts in the new year. To meet this demand, BCA has a comprehensive programme in place right through the final week before Christmas and, in addition, buyers will have the opportunity to continue to buy through the company’s digital sale platforms during the bank holiday period. BCA has seen values rise steadily during 2018, with professional buyers competing strongly for stock both in-lane and via BCA Live Online. Underlining this, fleet & lease values have reached record levels six times in 2018, while record values for dealer part-exchange cars were set for nine months in a row this year. Average fleet & lease values in November were
Average used car value :
£9,866
£11,682 – the third highest on record – and were up by £1,039 (9.7 per cent) on the same month last year. The retained value against original MRP (manufacturer’s retail price) slipped by just a percentage point to 44.78 per cent. With both mileage and age rising over the month, average dealer part-exchange values slipped by just £46 during November to £5,289 – but were still the second highest value recorded at BCA for dealer stock. Year-on-year values were ahead by £587, representing a 12.5 per cent increase over the 12-month period with age and mileage decreasing. Demand pushed the values of nearly-new vehicles up during November, with strong competition for the most desirable examples. The average value of £24,170 was the fourth highest this year and ahead of the same month last year by £5,725 – a 31 per cent uplift.
Average dealer part-exchange values:
£5,289
CarDealerMag.co.uk | 107
Data file.
James Litton
TRADER TALES
So long and good riddance to 2018 – welcome 2019!
2
018 will not go fondly into the memories of many car dealers. Supply issues thanks to poor WLTP planning by many manufacturers, Brexit chaos and a general economic malaise have all contributed to poor or at best middling results for most retailers. So, what about 2019? I put this question to my contacts on LinkedIn, and on a positive note, WLTP issues appear to be largely in the rear-view mirror for most, but the negative feeling around combustion engines and Brexit appear to cast a long, dark shadow for many in our industry. My own view is somewhat different. What if I had asked the same question to high street clothes retailers or jewellers? How about Currys or Carphone Warehouse? For me, those industries have a lot more to fear in 2019. Think about it. As an industry, we’ve been very successful at converting the method of purchase for the majority of new cars (and a good slug of used car sales) from cash to agreements that have a guaranteed point of change. Mobile phone retailers also have this in their favour, but these companies are at much greater risk from online channels. When was the last time you wanted to test-call or test-text someone? When did you last visit a mobile phone retailer to have your phone serviced? Legislation helps us. What other retail industry has legislation that forces you to go to the shop to have your goods inspected for safety? If our washing machine had an odometer, the fact that we have young children means we would have completed at least one trip to the moon by now, yet I don’t need to take it for an MOT. Changing consumer attitudes are a good thing. What if everyone was still wearing fur coats and crocodile shoes? Wouldn’t Next love it if a move in consumer behaviour towards sustainable man-made fabrics happened overnight, causing additional demand? The move from diesel to petrol or hybrid is essentially a recent phenomenon that has helped our showroom inquiry levels. But what about independents or manufacturers with limited alternative fuel offerings? It’ll be tougher for sure, but you need to find another way to retail. There are some spectacular independents that offer exceptional customer service or have specialist knowledge of one brand. Car supermarkets seem to be growing almost monthly in scale and frequency. The franchised dealers with weaker manufacturers need to look at their complete business. How many accessories do you sell? What is your service parc penetration? What is the used car stock turn like? You may think that my new year champagne has gone to my head, but I firmly believe that now is the time to focus on the opportunities instead of worrying about the threats.
‘Other industries have a lot more to fear in 2019.’
James Litton is general manager – director of Volvo Cars Poole. He always has something to say about the industry he loves. 108 | CarDealerMag.co.uk
Suppliers
IF YOU’RE LOOKING FOR A MOTOR TRADE SUPPLIER YOU CAN
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Nun’s pride and joy came before my humiliating fall
H
aving lived in the same isolated and rural area of the country all my life, there are some things that have largely eluded me. Try to find a Burger King, a karting track or a decent football team within a 20-mile radius of my home or, indeed, the dealership I work at and you’ll fail. The one benefit of this is that there are a lot of firsts I’m getting the opportunity to experience now that I’m an adult (in the loosest sense possible). One such opportunity came to me recently in my local town, and unfortunately, you could say I fluffed it. I was walking down a side street when I happened to see a nun walking across the road. Now, I’d never actually seen a nun in real life before, and this meant that she registered on my radar more than most pedestrians would. She started to cross the road and reached for a key – and this would ultimately be my downfall, as she proceeded to stroll towards the most dog-eared Kia Pride that I’ve ever seen... Kia only began the process of importing cars for the UK market in 1991, and looking at the condition of this particular specimen, I can only assume that it was one of the first off the boat. The car was being held together by a healthy amount of gaffer tape plus – I couldn’t help imagining – a little bit of God’s will as well. Now, I’d never considered what a nun would use as a daily driver, and finding out in such a fashion was a little too much for me to handle. As she opened the door, she turned and shot me a look, which was when I realised that I was staring quite obviously while trying to hold back a bit of a judgmental giggle as well. I tried to fashion a facial expression of remorse and contrition – forgive me sister, for I have sinned – but as she got into her car, she continued to look at me sideways with a rather less than beatific expression as I walked by. The encounter was an unmitigated disaster, of course, but at least this would be the end of it, right? Wrong. A week later, the same nun pulled up to have her Kia serviced. Clocking me, she looked somewhat annoyed. To her credit, though, she interrupted me to say that it was OK before I could stutter through an apology. I’m not a religious person but I certainly got a true sense of absolution that day...
‘I tried to fashion a facial expression of remorse and contrition.’
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 | 109
Key Notes.
...in association with Traka
The value of improving diversity and inclusion Paul Smith explains why it makes sense to recruit people from the widest possible pool of talent.
L
ast month, I was lucky enough to see a presentation linked to a joint market research project by executive search business Ennis & Co, a specialist in the automotive market, and the UK’s largest digital car marketplace, Auto Trader. The 23-page guide ‘Making Diversity and Inclusion a Business Reality’, which summarised the findings of the study, highlighted the value of taking a closer look at the way dealerships go about finding and trying to hold on to talent. It seems clear that broadening the mix of people in a business has a positive impact on the bottom line. Management consultancy McKinsey & Company’s Diversity Matters 2018 study found a clear link between racial and ethnic diversity and improved financial performance. In the UK, for every 10 per cent increase in the diversity of the senior executive team, earnings before interest and taxes (Ebitda) rose by 3.5 per cent. McKinsey noted in this same study that the impact of a weak diversity and inclusion (D&I) culture was having a more marked negative impact on the automotive industry than other sectors it studied. The reasons for this link are unclear until you look at the results of an Auto Tradercommissioned poll conducted by OnePoll in April 2018. This survey looked specifically at the experiences of female car buyers in dealerships. The results were worrying given the fact that over a third of cars owned by UK residents today are officially owned by women (women owned 11.8 million of the total of 30.9 million in 2017), and female car ownership has grown at nearly three times the rate of male car ownership (66
per cent versus 23 per cent) since 1996, suggesting that within as little as 10 years there may be more cars in female ownership than men. Yet according to the poll, over a third (35 per cent) of women who visited a dealership noticed there were very few, if any, female salespeople or front-office staff. This lack of women helping them left 13 per cent of women finding their indealership experience ‘uncomfortable’, and 15 per cent of women said that the dealer salesperson they encountered didn’t acknowledge them at all but preferred to engage the man if they arrived with a male partner or friend. The research also found that hyper-masculine advertising and marketing resulted in 87 per cent of UK car buyers feeling disconnected from automotive brands. It’s clear that, at the very least, car dealerships might want to run a slide rule over the current gender mix of customer-facing roles, because there’s little doubt that some female customers are not being well served by some dealerships as a result of male domination of front-office roles. Women may bring different, and increasingly valuable, skills to the mix. It’s no secret that the nature of car selling in dealerships is gradually changing. We hear about a more consultativeselling approach being increasingly adopted, where product ‘geniuses’ are employed to talk would-be purchasers through the array of F&I products, vehicle options and other add-ons. Strong inter-personal skills, patience, versatility and tenacity are just some of the skills that auto recruitment agencies tell us are in hot demand. Thinking more widely still, perhaps it would make more sense to recruit based on filling the
changing matrix of skills you think you need for the business to be successful – wherever those skills come from, including those with disabilities, different racial backgrounds, sexual orientations, those of different faiths or none. According to the Ennis & Co study of 75 senior executives involved in D&I in their automotive sector firms, nearly three-quarters (71 per cent) already monitor and report on the diversity makeup of their employees. But currently just over half (51 per cent) said they had active recruitment policies to achieve a diverse workforce. There is no doubt that the dealership world is going to be changing radically over the next 10 to 15 years. The combined emergence of autonomous vehicles, the move away from combustion-engine powered vehicles to electric, migration to ‘usership’ rather than ownershipdominated models and the Mobility as a Service revolution together ensure that near-constant change is a racing certainty for us all in this market, and your skills base will need to change to meet newly emerging challenges. Given this fact, it makes sense to begin recruiting people from the widest possible pool to find those best suited to adapt to these new market demands. Positive D&I will ensure that a much higher percentage of your future customers are likely to feel more comfortable in your dealership, and as TrustFord HR director Sharon Ashcroft sums up in the Ennis & Co report: ‘…happy colleagues = happy customers = happy profits and without a proper commitment to D&I, happy colleagues simply won’t be possible’.
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 110 | CarDealerMag.co.uk traka-auto 1-6pg.indd 1
15/12/2016 09:56
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Long-termers. LATEST FROM THE FLEET...
Volvo V90 T8 Twin Engine Our CEO swaps from a diesel V90 into the range-topping hybrid to find out which suits him better. by JAMES BAGGOTT @CarDealerEd
I
n this line of work, you often get asked what your favourite car is. Normally, the interrogator expects you to say something exotic, like a Ferrari or Bugatti, so you can imagine the strange looks I get when I reply: ‘A Volvo V90’. In fact, even writing that down makes me wonder if I’m mad, but then every time I get behind the wheel of one I simply cannot find anything to dislike. And I’ve certainly been driving them a lot. Over the past two months, I’ve been running a Volvo V90 D5 as a daily driver. Volvo lent it to me while I waited for ‘my’ V90, ordered from the factory in the summer, to arrive. The latter is the hybrid T8 version, so some time with the diesel alternative would allow a comparison and give me a great answer to that perennial question – should you opt for a diesel or hybrid? Let’s start with the common aspects of them both before I try to work that out. First there are the smart looks. This is one handsome estate, and although it’s rather long – 16ft long in fact – it masks those dimensions perfectly with good looks, a sweeping roofline and a tidy back end. It’s incredibly comfortable to drive too, with superb seats in both models and a brilliant touchscreen that controls absolutely everything inside. Standard specification on a V90 is pretty incredible. My favourites include super-bright LED headlights, a nine-inch centre console touchscreen, front and rear parking sensors (which really are needed) and the power-folding rear backrests and headrests, which make loading big things so much easier. Even heated front seats come at no extra cost. But back to the powerplants. The diesel D5 PowerPulse AWD I’ve been enjoying for the past few months has been smooth and refined. With 235bhp on tap and a whopping 480Nm of torque it’s perfectly at home on the motorway. However, most of my driving is in town, where a diesel makes little sense – as such, I’ve been getting just over half of the claimed combined fuel economy of 57.6mpg. Most weeks I was lucky to tickle 35mpg, which is rather disappointing. With options, the Inscription Pro model weighed in at £59,715, with just under £10k spent on extras such as a £3,000 Bowers and Wilkins 112 | CarDealerMag.co.uk
James picks up the car from John-Michael Eastman, business manager at Cambridge Garage
THE KNOWLEDGE Model: Volvo V90 T8 Twin Engine Price (as tested): £70,240 Engine: 2.0-litre petrol, electric motor Power: 303bhp Torque: 400Nm Top speed: 155mph 0-60mph: 5.0 seconds MPG (combined): 141.2 Emissions (CO2): 46g/km Mileage: 123 THIS MONTH’S HIGHLIGHT: Picking the new car up from Volvo’s stunning Cambridge Garage dealership in Havant. sound system and £1,500 on adaptive dampers. Both seem expensive, but having lived with them I’d be loath to be without. Both options were ticked on the T8 Twin Engine hybrid model too. As were nappa soft leather sports seats (£1,050) and the Xenium pack, which adds power panoramic sunroof, 360-degree parking camera and parking assist for a further £1,800. One needless option, but one that makes the whole experience feel even more premium, was the walnut wood shell for the key – £165 might seem extortionate, and it is, but my word it’s lovely and something nice to show off. All in, a T8 in my spec will extract £70,240 from your bank account – a shade over £10,000 on extras. As many people rightly pointed out on Twitter when I shouted about its arrival, £70k is a lot of money to spend on a Volvo, but for one of my favourite cars on the road? I don’t think that’s too bad. Now, I’ve only had a few days to spend with the T8 before writing this initial report but I’m already impressed with the hybrid set-up. It
charges in three hours on my 7kW home charger, or during a working day from a three-pin plug socket, allowing me to travel around town without using a drop of fuel. You get 25-ish miles on a charge and it’s swift, silent and smooth to drive. It feels incredibly luxurious. Stick your foot to the floor and the 2.0-litre engine kicks in too – combining with the electric motor to provide 303bhp and 400Nm of torque. That’s enough to see it crack 60mph in five seconds flat and on to a top speed of 155mph. That’s fast by sports car standards. I’m chuffed with the 20-inch diamond-cut alloys (£800) too, and the Osmium Grey metallic paint (£700) really tops it off. You’ve got to admit, she’s a cracking looking car. So far, my fuel economy has ranged from 23mpg after a drive back from the dealer with no charge to 143mpg on a trip around town. I’ll be interested to see how that levels out over the 8,000 miles I’ve got to test the V90, but so far at least it looks like the hybrid is the right car for me.
OTHER CARS WE’RE DRIVING
Seat Ibiza FR Mileage: 1,034 No sooner had one Seat left (see opposite page) than another arrived! KY68 ZXK, in Eclipse Orange and priced at £17,845, is settling in well and there’ll be a full report in the next edition.
Seat Arona Xcellence Lux After several months on the fleet and 10,000 miles travelled, it was time to say goodbye. by DAVE BROWN @CarDealerDave
I
t was a typical weekday evening in the Brown household. Strictly – It Takes Two had finished and my wife and I were idly looking at our mobile phones. Good times. After a minute or two of silence, though, she said: ‘You’ve made a mistake here.’ As you can imagine, that’s a sentence I’ve heard quite a bit in nearly 30 years of married life but this time I was a bit worried – it was workrelated. Surprisingly, she had chanced upon the last report I wrote about the long-term Seat Arona we’ve been running this year. ‘You say there’s no handy tyre pressure sticker on the inside of the petrol cap – which is true,’ she continued, rather too gleefully for my liking. ‘But it’s on the inside of the passenger door now. Seat have moved it, that’s all.’ I didn’t need to go outside and check – I knew she’d be right. She had been getting in and out of the passenger side of the car for six or seven months, after all, so had clearly noticed. Anyway, armed with that information, I was able to check that the tyres were at the correct pressures before the car left us for the last time recently. But before we said goodbye to KM67 XUU, it was put through its paces pretty thoroughly once again – and didn’t disappoint. The reason? I’d suggested a trip to see the stage version of the BBC TV sitcom Early Doors, which was a fantastically funny show (in my opinion)
As is Car Dealer tradition, Dave waved our long-term Arona off as it left us for the final time
THE KNOWLEDGE Model: Price (as tested): Engine: Power: Torque: Top speed: 0-60mph: MPG (combined): Emissions (CO2): Mileage:
Seat Arona Xcellence Lux £22,620 1.0 TSI six-speed manual 113bhp 200Nm 113mph 9.6 seconds 56.5 114g/km 10,251
THIS MONTH’S LOWLIGHT Saying goodbye to KM67 XUU after a lengthy and thoroughly enjoyable spell with the car. from about 15 years ago, starring Craig Cash and Phil Mealey. The only performance we could make, though, was in Hull – quite a long way from our home on the south coast. So it was that we jumped into the Arona on a very rainy Saturday morning and headed up the A34 before continuing to East Yorkshire. It was a trip that lasted four or five hours and involved
Kia Stonic
Citroen C3 Aircross
Mileage: 10,543
Mileage: 13,861
Despite only having had LF18 NKM on the fleet since April, it recently racked up 10,000 miles – meaning it was due its first service. Fine Cars of Lee-on-the-Solent, Hampshire, did the honours.
C3 custodian Cheryl has been braving the shops in the run-up to Christmas and her Citroen C3 Aircross has certainly helped her keep calm on the traffic-clogged roads of Portsmouth!
us making good use of quite a large percentage of the UK’s motorway network and several of its service stations. It all meant a proper workout for the compact Spanish SUV, which performed admirably. It was completely unfazed by the dreadful driving conditions and got us to Hull’s Bonus Arena in comfort and safety. It really is a cracking little model and probably explains why, in a tough market, Seat is performing strongly, with new car registrations up 14 per cent year-on-year. Hull wasn’t the only place we visited that weekend, by the way. From there we travelled to Gloucestershire so that my wife could attend a talk by Gary Barlow at the Cheltenham Literary Festival. (At least when we got home after that, we were back for good.) All in all, our Arona travelled more than 550 miles over the two days and didn’t put a foot wrong. Actually, that’s not quite true. Our journey was punctuated by a sat-nav quirk I’ve mentioned before, which involves the driver being instructed to leave a particular main road, go over a roundabout and rejoin the same carriageway! But now, as I’ve mentioned, the car has been returned to the good people at Seat – and the weather was a bit iffy on the morning it was due to be collected. A sudden downpour meant we didn’t reattach the Seat-supplied roof box, which in all honesty we hadn’t used during the car’s time with us. (The press office people kindly agreed we could return that later.) The car disappeared and is already much missed. CarDealerMag.co.uk | 113
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
Customers want to buy things their way – and it’s vital that we let them
W
e want things delivered differently these days. We’re all time-poor; minutes and hours consumed by work, family and every other part of life that seemingly snatches seconds from the clock right in front of our eyes. In these changing times, the way we want to be entertained, shop and consume media has transformed too. No longer do we make a pilgrimage on a Friday night to a popcorninfused video store to pick up a VHS of the latest movie release, instead choosing from thousands of films streamed in seconds to your TV from the comfort of your sofa. Our takeaways are now ordered on an app – doing away with the battle trying to get through on a constantly engaged curry house’s landline. You even know when they’re going to be delivered, with live updates flashed up on that ultra-bright screen that sits in the palm of your hand. Even these minor changes to a once-normal weekend routine have saved us precious minutes and seconds to do things we’d much rather be doing, like drinking wine or reading the kids a bedtime story. These waves of change are washing over every part of our lives – each improvement giving us back precious seconds to spend doing something else. Just a few days ago, I needed a padlock and within 30 seconds of a conversation with a friend about which to buy, I’d found one on Amazon, bought and paid for it. Half a day later it was on my desk. That really is incredible – a process that would have once required a drive to a hardware shop, finding a parking space, walking in and looking for what you need and paying with cash was completed in less time than it’s taken to write this sentence. And for those of you thinking this won’t come to car buying, think again. It’s only a matter of time before these industryshifting changes come to dealerships. Many are trying, a few have failed, but the desire to buy cars in a way consumers want – not the way you or your manufacturer dictate – is very real indeed. Over a terrible American lager and what I didn’t realise was a vegetarian burger until I’d finished it, I chatted to Mazda UK’s boss Jeremy Thomson about how his brand was changing the face of selling cars. Thomson is a forwardthinking manufacturer boss and three years ago introduced a new
sales concept called ‘Mazda MyWay’. With property in central London prohibitively expensive, Thomson ruled out a physical dealership and flipped some marketing money into employing a team of product specialists instead. Visitors to the Mazda website from the central London area were actively targeted and offered a home visit, at a time and date that suited them, to test-drive any Mazda they desired. Mazda UK held a fleet of demonstrators and took them directly to the customer’s door. The product experts weren’t salesmen either – something that Thomson said would ‘ruin’ the concept. Instead, they were salaried positions and purely there to help guide the customer through the decision-making process. Once the customer has decided to buy, Mazda UK offers the sale to a network of dealers who can bid, Carwow-style, for the custom. The customer then chooses the best offer and completes the purchase at the dealership. OK, so the last bit is the strange point for many – why would you make the customer visit a dealership still when they probably just want to get it all done at home? Mazda argues that it’s taking the hassle out of the choosing, introducing customers who might not necessarily buy a Mazda to the brand, and helping guide them along the way outside the confines of a dealership. It’s also keen on protecting its dealers’ interests – knowing they’ve invested heavily in nice showrooms and property. But Thomson is confident it’s a concept that works. So far, MyWay has been responsible for 400 sales in central London and he’s keen to see this success repeated elsewhere. A Tunbridge Wells trial has just started, while RRG Group is managing another in the north. These are slightly different – the dealerships employ the staff, with a little bit of help from Mazda’s marketing budget, and they then get exclusivity over the deals. But the home visit concept is the same, as is the product expert not pushy sales approach. Thomson says he plans to roll these pilots out in other areas too. Let’s face it, you don’t buy things the way you used to, so why should you force your customers? If this industry doesn’t move with the times, could dealers go the way of Blockbuster or Kodak? Let’s hope not.
‘Only a matter of time before industry-shifting changes come to dealerships.’
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. 114 | CarDealerMag.co.uk
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