Car Dealer Magazine: Issue 133 by Blackball Media

FINANCIAL RESULTS: THE WINNERS AND LOSERS AMONG THE BIG DEALER GROUPS

Issue 133 | April 2019 | CarDealerMag.co.uk | Â£5

GENEVA HIGHLIGHTS

T S E B E H T IN SHOW ANUFACTURER M H IT W S AT CH E IV US CL EX PLUS: ES CONTINUE BOSSES AS TURBULENT TIM

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Editorial HEAD OF EDITORIAL Rebecca Chaplin

rebecca@blackballmedia.co.uk Twitter: @believebecca

HEAD OF DESIGN Graeme Windell

graeme@blackballmedia.co.uk Twitter: @graemewindell

PRODUCTION EDITOR Dave Brown

dave@blackballmedia.co.uk Twitter: @CarDealerDave

FEATURES EDITOR Jack Evans

jack@blackballmedia.co.uk Twitter: @jackrober

STAFF WRITER Ryan Hirons

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STAFF WRITER Tom Wiltshire

tom.wiltshire@ blackballmedia.co.uk Twitter: @mctreckmeister

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MANAGING DIRECTOR BLACKBALL MEDIA Andy Entwistle andy@blackballmedia.co.uk Twitter: @CarDealerAndy Contributors John Bowman, Jess Ernerth, Ted Welford, Adam Weller, Oliver Young

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Welcome.

I SEEM to have blinked and missed this month completely, but that could be because I managed to successfully dodge the biggest event in the automotive calendar for once. I am, of course, talking about the Geneva Motor Show which is STILL going on as I type. It’s fair to say I’m a little bit jaded about motor shows these days. If I’m honest, I thought they would have faded into obscurity a while ago. Who wants to fight their way through the crowds to look at a car when you could be out driving one? I know what I’d pick any day of the week. The problem with car shows, for me anyway, is that whenever I’m visiting one, I’m basically working. This means that unlike the general public, who can peruse every car on display, we journalists seem to be toiling away. We have to trek from stand to stand and often clock up the distance of at least a half-marathon in a day. Everyone else, meanwhile, seems to be enjoying the largest automotive industry party in the world. This month we held our own little industry shindig though, so I felt I had scratched that itch to mingle and chat with members of the car industry at the Aftermarket Excellence Awards. It was the first time we had held these awards, which focused on the workshops and aftersales departments of businesses across the UK, and it was a huge success! As you might have noticed so far in this bright and breezy intro, it can be easy to get bogged down in the mundane aspects of our job sometimes – but it’s the nights like these that really do make it worth it. Speaking with our winners, it was fantastic to hear their opinions on the industry, where they might be struggling or where they are finding huge success. For everyone I spoke with, picking up one of our Car

Dealer gongs made a huge difference on the night and will continue to do so for their businesses now the award or certificate is on display. Also in this issue, we’re announcing how you can vote for the best suppliers and manufacturers, as we approach our Car Dealer Power event. It may seem as though your votes don’t make a difference when you’re filling out the survey (either on the pages in this magazine or on the website cardealerpower.com) but it must be the feature that I personally get the most complaints about every year. Those who score badly will always be in touch to question the results, but that will never deter us from publishing what you tell us. Don’t worry, though, as it’s all kept anonymous. That’s why the angry emails and calls come to me. This month we’ve also been celebrating National Apprentice Week by kicking our apprentice out for a day to find out what it takes to train with Volkswagen Commercials (not a hint, we promise). However, unlike Adam, who tried out as an auctioneer in our last issue, Ted finds out he’s probably better suited to writing about cars and vans than trying to diagnose or fix them. I’m on the lookout for new places to send our unsuspecting writers to, so if you’ve got a job that you don’t want to do at your dealership, I’m willing to send you a human journalist for the day. I won’t charge you, but you will have to let us write about it afterwards. Send us the opportunities on the back of a stamped, addressed postcard to P.O. Box 1234, Car Dealer Towers, Gosport or use my email address on the left like any sane person would do. Enjoy the issue!

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

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Driven: McLaren 720S Spider An incredibly accomplished supercar from the British manufacturer – but does it lack soul?

Have YOUR say on your suppliers and manufacturers

ISSUE 133 I APRIL 2019

Dashboard. The Big Story Around the UK CDX: We really mean business! Car Dealer Power 2019 launch Rebecca Chaplin Big Mike Feedback Geneva Motor Show Around the World Finance

6 10 12 18 27 29 30 34 44 46

Features. Aftermarket Awards On course for success

Data File. The Statistics Fully Loaded Aftermarket Car Dealer Club Auctions Taking Stock Market Insight

Forecourt. Toyota Corolla Range Rover Evoque

52 54

Suppliers Guide Long-termers James Baggott

59 66 74 76 80 82 84 85 86 92 95 98

All the action from our fourth and final qualifier

Can Mazda crack the C-segment with new 3?

Our events... As voted for by dealers, Car Dealer Power is unique. Details of our 2018 winners are online at bit.ly/CDP-18. Get involved with the 2019 survey by turning to p18.

The Car Dealer Used Car Awards, sponsored by Black Horse, celebrate the used car industry. Go online to bit.ly/UCA18winners to find out who won what last year.

The UK’s most important automotive trade expo features the Live Stage, workshops and much more. It’s at Farnborough International on June 12 this year – find out more on pages 12-14. CarDealerMag.co.uk | 05

Dashboard. THE BIG STORY

Very mixed fortunes for Brexit, WLTP, anti-diesel sentiment and more – our biggest dealer groups had lots to contend with in a tough 2018. Three of them have just released their results for the year...

‘We remain focused on having the right brands in the right locations.’

‘Despite challenging new and used car markets, the group performed strongly.’

Andy Bruce, chief executive officer

Daksh Gupta, chief executive officer

here have always been winners and losers in the car industry – and there’s nothing like a difficult market to test the mettle of the big dealer groups. Shortly before this edition of Car Dealer went to press, three of the largest operators, Marshall, Lookers and Pendragon, published their full-year results for 2018 – and it was fascinating to see how each one fared during a year of diesel demonisation, WLTP issues and, of course, Brexit uncertainty. Marshall Motor Group was perhaps the most bullish of the three, and according to our expert analyst Mike Jones, of profitability specialists ASE, it emerged as the top performer. Chief executive officer Daksh Gupta was clearly delighted by his firm’s showing, describing the figures as ‘stellar’. 06 | CarDealerMag.co.uk

Marshall recorded revenue growth of two per cent in 2018, despite the new car market falling by 6.8 per cent last year and the used car market declining by 2.1 per cent. Gross margin remained strong at 11.7 per cent, while underlying profit before tax was up 1.2 per cent to £25.7m. Like-for-like total new vehicle unit sales were down 8.2 per cent owing to the impact of WLTP and diesel challenges, the company reported. But there was a strong used car performance at Marshall. Like-forlike unit sales were up 2.3 per cent with revenues up 8.1 per cent. The company also reported further like-for-like aftersales revenue growth – up 2.3 per cent. A strong balance sheet sees the company having net assets of £200.4m (£2.57 per share), underpinned by £125.3m of

freehold/long leasehold property and minimal net debt. Another year of strong operational cash generation supported further capital investment of £23.8m. Gupta said: ‘Despite challenging new and used car markets, the group performed strongly, exceeding last year’s record result.’ Lookers saw its pre-tax profit drop by nine per cent to £53.1m last year as new car sales fell, the motor group revealed. The retailer said turnover rose by four per cent to £4.88bn, however. Used car turnover rose by 14 per cent to £1.94bn, but its total new car turnover decreased by 3.3 per cent to £2.4bn. Meanwhile, aftersales turnover rose by six per cent to £433m. Adjusted profit before tax was down by two per cent to £67.3m, while adjusted profit before tax and

excluding property sales was down 9.5 per cent to £59.6m. Among the operational highlights were the acquisition of the Jennings Motor Group last September – which was subsequently revealed to have cost it £5.6m for the entire issued share capital – and expanding its partnership with Ford in the northeast of England, as well as continued investment to improve dealerships. Chief executive Andy Bruce said: ‘We have produced a resilient set of results against a backdrop of more challenging conditions in the motor sector, increasing sales and maintaining profitability. In particular, growth in our used car and aftersales divisions has helped to offset the impact of a more muted new car market, demonstrating the resilience of our business model. ‘We remain focused on our strategy of having the right brands

Our experts mean business!

What’s coming up at CDX 2019, p12-14

trio of big hitters Analysis

Most progress from Marshall in the face of WLTP supply issues Mike Jones, chairman of profitability specialists ASE, looks at the performances of the three companies.

‘We have seen strong performance in used cars in the second half of the year.’ Trevor Finn, chief executive officer in the right locations, underpinned by ensuring operational excellence across our portfolio of dealerships. ‘This focus, combined with the quality of our people, is our formula for success and is helping us to increase market share.’ Pendragon suffered some negative headlines after publishing its results for 2018. Its pre-tax loss of £44.4m for 2018 attracted all the attention but its underlying profit before tax stood at £47.8m – a decline of £12.6m on the 2017 figure but at least firmly in the black. The reason for the drop was given as a decline in new vehicle gross profit in its UK motor division and the investment it had undertaken in new Car Store sites and ‘refurbishment factories’. In the used market, its gross profit grew from £156.3m to £164.2m year-on-year, up 5.1 per

cent. Its report stated that the used market is ‘more stable and provides a more reliable supply chain than the new vehicle sector’. Revenue in its Car Store used car supermarket business grew by £83.6m – an increase of 38.5 per cent – while gross profit was up 42.2 per cent. However, accounting for the impact of start-up and transformation costs, the operating loss for the business was £11.9m. Pendragon believes the market will be ‘broadly flat’ in 2019. Chief executive Trevor Finn, who was retiring as CEO in March, said: ‘We have seen strong performance in used cars in the second half of the year. ‘We continue to focus on our strategic priorities and the reallocation of our capital into the areas we see as providing the strongest long-term growth.’

LOOKING in more detail at the results announcements, Marshall has clearly produced the largest progress. Removing the effect of exceptional profits and losses, we saw a fall in underlying profit of 21 per cent at Pendragon, nine per cent at Lookers and a rise of one per cent at Marshall. All of the companies were negatively impacted by WLTP restricting new car supply, which produced falls in new car revenues and profits. The picture in aftersales and used cars is more mixed. Marshall uniquely produced growth in used car volumes and profits. Lookers marginally grew the overall profit contribution from used cars, however a reduction in the gross margin percentage offset the growth in volumes. Despite focusing heavily on the Car Store concept and having been affected by pre-registered stock in 2017, Pendragon’s used car revenue dropped year-on-year. There was a five per cent growth in gross margin, however this

is slightly misleading, with preparation costs sitting within operating expenses rather than gross margin. Overall loss for the Car Store business increased to £11.9m. Aftersales revenue increased at both Lookers and Marshalls, with Lookers able to increase gross margin. In addition, there was a variance in each company’s outlook, as reflected in their attitude to goodwill. Lookers kept all its historic goodwill balances as per the prior year. Marshall took a £9.3m impairment charge, representing a write-down of its BMW/Mini goodwill by £8.4m and a write-down of Nissan goodwill by £0.9m. Pendragon impaired its goodwill total by £89m, with an additional £6m provided against property and other fixed assets. Only Ford did not receive a write-down, with BMW (£24m provision) and Mercedes (£20m provision) being the hardest hit. Interestingly, it also provided in full against the £10m goodwill previously held in Car Store.

Highlights Marshall

Lookers

Pendragon

Revenue

£2,187m (+2%)

£4,880m (+4%)

£4,627m (-2.4%)

Underlying PBT

£25.7m (+1.2%) £53.1m (-9%)

£47.8m (-20.9%)

Used car revenue

+8.1%

+14%

-0.3%

New car revenue

-4.5%

-3.3%

-2.2% CarDealerMag.co.uk | 07

Dashboard.

What was unveiled at this year’s Geneva Motor Show?

Nine pages of coverage from p34

MITSUBISHI

Development role for Catherine

MITSUBISHI Motors in the UK has strengthened its dealer development team with the appointment of Catherine Perrin to the role of regional network development manager. Perrin, above, is now responsible for securing and working with new dealer partners and developing the Mitsubishi dealer network in the UK, having first joined the company in 2005 as part of the graduate programme. She has spent seven years working for Nissan in a number of dealer-related roles, including area sales manager and franchising manager for the south. Most recently, she was focused on driving dealer and customer quality improvement. Perrin said: ‘It is a really exciting time to rejoin Mitsubishi Motors in the UK. The brand is well placed with new products, brand evolution and, most importantly, working with our existing and new partners to drive towards our 2022 vision.’

AUTO TRADER

Huge drop in diesel demand THE latest findings from Auto Trader reveal that petrol now accounts for half of all fuel-related searches that take place on its marketplace, while diesel accounts for just 42 per cent. It marks a huge decline for the much-maligned fuel type, which in February 2017 accounted for 64 per cent of fuel-related searches. 08 | CarDealerMag.co.uk

WITHDRAWAL

It’s the end of the road for Infiniti in western Europe

nfiniti is to withdraw from western Europe, including the United Kingdom, from 2020 and end production in Sunderland this year. The withdrawal and restructure will involve closing all retail operations. However, dealerships will remain open until a ‘tailored transition plan is put in place’. The Nissan subsidiary has said that the restructure will focus on growth in its largest markets, North America and China, but head of Infiniti Europe Steve McLennan said that the western European sector simply wasn’t a ‘viable and sustainable business’. McLennan explained: ‘The decision to withdraw Infiniti operations from western Europe was extremely difficult to take and only made after careful consideration of all possible scenarios. The commercial reality for

by REBECCA CHAPLIN @believebecca

Infiniti in western Europe is that there is simply no visibility of a viable and sustainable business either currently or in the years to come. ‘The global strategy for Infiniti is to focus upon the major growth opportunity regions of China and North America to optimise the business.’ Part of the brand’s new plan is to electrify all models in its portfolio by 2021 and discontinue diesel offerings, while putting more focus on its SUV line-up in North America and bringing five new models to China in the next five years. In a statement, Infiniti said: ‘In anticipation of its planned withdrawal from western Europe in

early 2020, the company is working to find alternative opportunities for any employees who would be affected, consulting with employee representatives where necessary and identifying opportunities for transition and training support where appropriate.’ Infiniti said that it would then work with retailers to conclude end-of-franchise agreements, providing the support and services needed for a smooth transition.

‘The commercial reality for Infiniti in western Europe is that there is simply no visibility of a viable and sustainable business either currently or in the years to come.’ Steve McLennan, head of Infiniti Europe

MOT testers warned not to risk suspension as deadline looms NEARLY 40 per cent of MOT testers face being suspended if they don’t complete their annual training and assessment by the end of March. That’s according to the Driver & Vehicle Standards Agency (DVSA), which says its figures show that 24,694 testers still have to complete it.

Last year, 5,538 were suspended for failing to do so. Every year, all 63,000 MOT testers have to carry out training and assessment on set topics to make sure they are competent and safe to carry out MOTs. DVSA MOT product manager Simon Smith said: ‘DVSA’s priority

is to help everyone keep their vehicle safe to drive. Annual training and assessment is a vital part of continuous improvement to maintain the high quality of the MOT. Testers need to be well prepared to carry out their work and be knowledgeable about the subjects they deal with.’

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 ANGUS

New dealer hails MG’s quality and reliability

MG MOTOR UK opened its fifth new dealership in as many weeks with the appointment of Mackie Motors in north-east Scotland. Cars manufactured by the brand will be sold from a renovated showroom in Brechin, Angus. Mackie Motors MD Kevin Mackie said: ‘We’re delighted to be bringing value-for-money MG cars to Brechin. ‘We have a strong local reputation and I would not be bringing MG to my customers if I were not completely confident about the cars’ quality and reliability.’

WORCESTER

Third year of football sponsorship kicks in... FORD Worcester has backed the talent of Worcester City U17s with financial support for a third year. The Bristol Street Motors dealership is helping with the cost of hiring training facilities, as well as arranging weekend fixtures and sponsoring the U17s’ training and home kits. General manager Andrew Kite, pictured above

CASTLEFORD

DORSET

Motorpoint launches Tigers partnership

More than £200,000 spent on Lexus site

MOTORPOINT has kicked off a new partnership with top rugby league outfit Castleford Tigers. The independent car retailer, based in Whistler Drive, Castleford, has teamed up with the four-times Challenge Cup winners as part of a drive to support its local community in West Yorkshire. The Motorpoint logo features on the sleeve of all home, away and third kits, while its new Price Pledge is on prominent display on the Princess Street stand.

LEXUS Poole has invested more than £200,000 in a new state-ofthe-art showroom. The West Quay Road dealership underwent a 10-week programme of internal cosmetic work and now has a new modular design, bringing a fresh, updated look and feel to the showroom. Adrian Chapman, head of business, said: ‘We endeavour to create a first-class customer experience and our refurbishment has helped to enhance this.’

10 | CarDealerMag.co.uk

with some of the players, said: ‘As general manager of a fantastic dealership in a thriving city, I wanted to share some of that success with our local community, and the sponsorship of the Worcester City Football Club was an ideal opportunity to do that.’ He added: ‘We all look forward to hearing about their successes.’

Best-selling new cars in February February 2019

Source: SMMT

Ford Fiesta 3,399 Ford Focus 2,537 Volkswagen Golf 2,410 Mercedes-Benz A-Class 2,059 Volkswagen Polo 1,512 Nissan Qashqai 1,449 Ford Kuga 1,402 Vauxhall Corsa 1,306 Ford EcoSport 1,292 Volkswagen Tiguan 1,258 The statistics, p74

DURHAM

Dealership on the ball with support for club

BRISTOL Street Motors’ Ford dealership in Durham has forged a partnership with Spennymoor Town FC that will run until May. The club will use the financial support to pay for the ground fees and maintenance, taking pressure off the fund-raising events that the club organises. As part of the support, the dealership will have new Ford vehicles outside the stadium during games, and the partnership will be promoted on the club’s social media channels.

A global snapshot of dealership news

Around the World, p44

LINCOLNSHIRE

BIRMINGHAM

Duo promoted to senior management

Motorpoint sponsors St Pat Rocks concert

VERTU Honda has promoted two members of staff to senior management positions. Matthew Hodgkinson, right, will oversee the Lincoln site as general manager as well as Boston, where he already holds the role, and Chris Dibley, left, has been made business manager at Vertu Lincoln Honda, rising from sales executive at Vertu Nottingham Bikes. Hodgkinson has worked in the industry for more than 10 years, while Dibley joined Vertu four years ago.

MOTORPOINT hit the right note with its sponsorship of St Pat Rocks. The independent car retailer backed the open-air one-day music event at the Custard Factory in Birmingham as part of its continuing support for the city’s St Patrick’s Day Festival. Irish folk singer-songwriter Finbar Furey headlined the concert, and Motorpoint Birmingham general manager John Forster said the dealership was ‘delighted’ to be sponsoring St Pat Rocks.

CHELMSFORD

‘My rather cynical view is that powerful forces are at work to ensure that cheap motoring is set to become a thing of the past.’ Big Mike, p29

Sarah-Jane keeps it in the family

A DEALERSHIP is staying in the family after ownership transferred from parents to daughter. Sarah-Jane Mair had worked for Rettendon Car Sales since 1994, but thanks to a £200,000 NatWest loan has now taken over from John and Pauline Mair, who had run it since 1971 and have now retired. She said: ‘It has always been my ambition to continue the family business.’ Pictured are Sarah-Jane Mair, left, and NatWest relationship manager Jade Holland

BOLTON

New Audi centre on the way from Jardine

JARDINE Motors Group is investing in a new Audi centre in Bolton. The 12-month project will result in an all-new flagship Audi centre, built to the manufacturer’s latest ‘Terminal’ design and corporate identity. Facilities will include showroom display space for 12 new cars, an 80-car Approved Used forecourt display, a 22-bay workshop featuring the latest in servicing equipment, and parking spaces for more than 100 customers.

LANARKSHIRE

New chapter for Taggarts after a challenging year TAGGARTS has begun the next chapter in its prestigious history in Lanarkshire after opening a new £4m Land Rover dealership. The showroom is in the same location as the previous building in Windmillhill Street, Motherwell, but is far more than a refurbishment and is a complete rebuild of the site.

The development follows a difficult year for the business, which suffered an arson attack during its stay at a nearby temporary site. Andy Johnston, head of business, said: ‘Having worked through a challenging year, it is great to be able to move into our fantastic new home. I’m excited by the prospects for the future.’

First drive: Toyota Corolla

Ease of driving, low cost of ownership – but is it an improvement over its predecessor? Forecourt, p52 CarDealerMag.co.uk | 11

CDX 2019 CONFIRMED WORKSHOPS

Our experts mean June 12, 2019, Farnborough International Exhibition & Conference Centre WORKSHOP INSIGHT

Why selling cars online should be the next step for your dealership

s there an appetite from consumers for online car selling? Massively so, says expert Paul Stokes, who we revealed in the last issue of the magazine would be at CDX to talk about this hot topic. The head of online retailing at GForces will be joined by Katie Newton from RRG Group – a dealer group already offering this to its customers – to explain exactly why selling cars online is an opportunity not to be missed. They’ll be hosting the workshop Why end-to-end online retailing should be the next step for your dealership at CDX, and we caught up with Stokes ahead of the event to see whether car buyers really are ready to complete their entire purchase on a dealer’s website. ‘I can look at other industries and see that customers are digitally savvy, they’re already conditioned online by other industries and we should be no different. We’re only giving customers one way to buy and that’s the traditional sales process – that’s got to change,’ he said. Stokes is the man leading GForces’ latest digital offering, NetDirector Transact, but his previous role as the managing director of digital

In association with

12 | CarDealerMag.co.uk

dealership Rockar allowed him to see first-hand this inclination for buying cars completely online – sometimes without ever setting foot in a dealership. ‘I think consumers have been ready to buy like this for a long time if I’m being honest, and I think that as an industry we’ve been very slow to react to it,’ said Stokes. ‘We don’t think that consumers would want to transact a bigticket purchase in this way. ‘However, when you actually look at what a lot of retailers are doing at the moment, there’s a lot of what we would call half-baked e-commerce. ‘They’ll happily take a deposit over the telephone from a customer. The customer at that point probably hasn’t seen the car, but what they’re not offering is

Paul Stokes

the ability to transact fully – be that the ability to pay for the car online or go through a complete finance application process.’ Over the past 12 months, there has been more appetite in the automotive industry to offer a way for customers to buy a car completely online, although this has mainly come from manufacturers giving new car buyers a way to configure, pay and arrange delivery all from their own websites. For now, Stokes’ growth predictions for the number of dealers offering full end-to-end online retailing err on the side of caution, but he expects that we’ll see at least 10 per cent of the market offering this in a year’s time. ‘In the automotive space, there’s an unwritten rule that says you have to buy a car a certain way. ‘Ideally, the retailer wants to be face to face with the customer because they want to maximise the opportunity, but the consumer is saying, “I don’t really want to buy the car that way.” They want the easiest and most simple mechanism to buy from you. ‘The only way to deliver that in this day and age is through an online solution. You can’t deliver it any other way. ‘The more traction we see, the more adoption we see at retailer and OEM level.’

business! CDX 2019 will be hosting 12 best-practice workshops throughout the day and they’re not to be missed! Every session will offer practical advice that

you can apply at your dealership immediately, and every workshop will include a dealer case study on the subject. Here are our second two workshop announcements...

WORKSHOP

The art of the deal through social media Presented by Aiden White, Facebook UK’s client solutions manager for automotive.

CDX will show you how to maximise The Live business opportunities showroom Stage sessions are alwayswas one manufacturer to introduce Hyundai popular the option to buy a car direct from its website at2017. CDX GForces has also seen an increase in in dealerships wanting to offer this, but Stokes notes that a lot of apprehension comes from uncertainty around customers actually using the system and any infrastructure changes the business may need to make. This might not seem like the ideal solution for everyone in 2019, but he warns that the next generation will be far more inclined to do all of their shopping online – including new and used car purchases. He said: ‘The one thing we’ve got to accept, and I’m talking probably in five to 10 years’ time, is that those people buying cars will be digitally savvy and they’ll want to order things from their mobile, order from their laptop or iPad because that’s how they’ve grown up. ‘That’s how they’ve always done things and it’s become part of the culture of the way they exist.’

Two-thirds of consumers would prefer to message a friend or business than pick up the phone or send an email, according to Facebook. Over the past 18 months, it has developed best practice that lets manufacturers and dealers come together to provide a seamless customer experience through social media that drives increased conversion rates. By building brand favourability, model awareness and product consideration on Facebook and Instagram – and thanks to

Facebook’s ability to track when consumers are showing signals that they’re ready to buy – the social media giant can ensure that a dealer’s local marketing activity targets the right consumer at the right time. That’s what Aiden White, Facebook UK’s client solutions manager for automotive, will be delving into during his workshop at CDX 2019. White works with the UK’s leading OEMs and their agencies to deliver campaigns across the Facebook ‘ecosystem’, as well as drive closer collaboration with their retailer networks. He spent four years working for Renault UK before joining the Facebook autos team in 2016.

WORKSHOP

Top tips for making your dealership a place where people want to work Presented by Fiona Cottle, people director at Sytner Car Supermarket Division. Sytner Car Supermarket Division has a robust strategy for making its dealerships places where employees want to work – and at this year’s CDX, its people director, Fiona Cottle, will host a workshop on why this approach should be at the core of any successful dealership. She will examine why you should be considering a strategy such as Sytner’s in your own business, the link between colleague and

customer experience and how you can define the values that support them. Sytner Car Supermarket Division, which includes CarShop and The Car People brands, has an ambitious growth strategy and this focus on employees is key to achieving the group’s goals. The session will take you through how to engage your employees with your company values at every stage of the colleague lifecycle and define what a world-class colleague experience looks like.

To register for your ticket to CDX 2019, visit the website cardealerexpo.co.uk CDX and all related content and sessions are subject to change or cancellation at any time up to and including the event day. CarDealerMag.co.uk | 13

Wednesday

June 12

2019 Farnborough International

Already announced for CDX 2019 Workshops

Armchair Marketing

The top three digital marketing tricks that deliver real results With Tanesha Stafford, co-founder of Armchair Marketing, and Neil Smith, operations director at Imperial Cars.

Why end-to-end online retailing should be the next step for your dealership With Paul Stokes, head of online retailing at GForces, and Katie Newton, business development manager at RRG Group.

Top tips for making your dealership a place people want to work in With Fiona Cottle, people director at Sytner Car Supermarket Division.

Live Stage

Dealer panel John Tordoff, Daksh Gupta and John O’Hanlon will be on the Live Stage giving us their thoughts on the latest hot topics and key issues affecting the UK automotive industry and answering questions from our audience of dealers.

Manufacturer panel Manufacturer bosses including Stephen Norman, William Brown and Karl Howkins will be joining the Car Dealer team on the Live Stage to share their thoughts and insight on the state of the market and what lies ahead.

Dealers’ Den Sponsored by Cox Automotive, Dealers’ Den will see five new businesses deliver a five-minute pitch to our panel of industry expert ‘Dragons’, with the best product or service receiving a year’s worth of free PR support to drive their business to the next level.

Book your FREE ticket now at cardealerexpo.co.uk Follow CarDealerExpo on Facebook & Twitter for more updates! In association with

14 | CarDealerMag.co.uk

CDX and all related content and sessions are subject to change or cancellation at any time up to and including the event day.

Dashboard. EMISSIONS

Nail-biting action in our fourth and final qualifier.

Go-Karting Challenge, p24-25

N-N-N-NINETEEN!

44,000 JLR cars subject to voluntary recall JAGUAR Land Rover is recalling more than 44,000 cars after it was found that many of its models were emitting more carbon dioxide than expected. The recall affects Jaguar and Land Rover vehicles fitted with either a 2.0-litre petrol or 2.0-litre diesel engine. The recall applies to certain versions of the Jaguar E-Pace, F-Pace, F-Type, XE and XF, as well as the Land Rover Discovery, Discovery Sport, Range Rover Sport, Evoque and Velar, with models from between 2014 and last year affected. Customers are being contacted, and in a statement a JLR spokesperson said: ‘Jaguar Land Rover is conducting a voluntary recall following the identification of CO2 performance variability with certain Jaguar and Land Rover vehicles fitted with 2.0L diesel or petrol engines. ‘Affected vehicles will be repaired free of charge and every effort will be made to minimise inconvenience to the customer during the short time required for the work to be carried out.’

AUTO TRADER

Kadjar is fastest selling used car ONLINE car marketplace Auto Trader has announced that the Renault Kadjar sold quicker than any other used car during February. The popular small SUV took the number one spot after averaging just 17 days on dealer forecourts. Selling at an average retail price of £17,865, the vehicle’s success marks the third consecutive month an SUV has claimed the title.

Another new plate – and busy times for dealers! I t might not be quite as manic as it once was, but plate-change day still causes a buzz at dealerships right across the country. Many organise special promotional events, celebrations and midnight handovers to mark the occasion. March 1 this year saw 19-plate cars taking to the roads for the first time, and there seemed to be no shortage of excited buyers picking up the keys and driving off in their new vehicles. Car Dealer caught up with a few dealers who told us how their day had gone. Guy Jenner, managing director of HWM Aston Martin, Walton-onThames, said he and his team had had a busy day but acknowledged that plate-change day wasn’t perhaps as important as it used to be. However, he added: ‘I do think buyers gravitate towards the new registration as it comes closer. People making purchase decisions in late January and early February might be inclined to delay their car collection until the new registration but I don’t think it drives the initial purchase. I think it’s really a question of timing.’ Jenner and his team handed over eight cars on March 1, ‘which for an Aston dealer is a busy day’. He added: ‘I think the market’s really difficult to predict at the moment. We feel lively and it does feel like it’s picked up, but there’s a lot of political distraction.’ James Walker, sales manager of Hendy Ford, Tunbridge Wells, said

Eight new cars were handed over to customers at HWM Aston Martin, Walton-on-Thames, above, while the showroom at Listers VW Worcester, left, was looking great for its first midnight handover!

March 1 had gone well for him and his team, adding: ‘We had quite a few cars going out. It was a busy day, but consistent with a normal March 1 or September 1.’ Asked if he thought plate-change days were as important as they once were, he told us: ‘No, I think they have got diluted over the years. With the two changes a year, there’s not as much importance placed on new reg. ‘We’re still quite busy in January and February as well as March, and from my experience people aren’t as conscious about waiting.’ Compared with some new car dealers who are finding life challenging, Walker was upbeat. He said: ‘We’ve been busier year-on-year every month since September. ‘In January, we did loads more than we did in January last year. It was the same in February and it’s looking that way in March at the moment.’

One dealership that really did push the boat out on March 1 was Listers Volkswagen Worcester, which staged its first-ever midnight handover of newly registered cars. Brand manager Richard Newbold told us: ‘It went really well. Our customers really enjoyed it. ‘The staff had a really good evening and there was a great atmosphere.’ He said 15 cars were handed over during the early-hours celebrations, with 20 more being driven off during normal business hours on March 1. ‘It’s the first time we’ve done a midnight handover,’ he said, adding that the dealership was having ‘an exceptional month’. Newbold said: ‘I try to do something different each year, just so platechange day doesn’t go stale and keeps everybody involved. I was really pleased with how it all went.’ Oliver Young CarDealerMag.co.uk | 15

Going forward together. The road ahead is clear. With Barclays Partner Finance by your side you can help your customers spread the cost of their car with flexible finance that is fair, transparent and meets their needs. We provide help with finance regulation and dedicated support from our experienced account managers, allowing you to build your business with confidence. Plus we can introduce you to innovative business solutions from the wider Barclays Group. A solid partnership with Barclays Partner Finance will take you further. Call us today on 0330 058 1111* or visit barclayspartnerfinance.com

Barclays Partner Finance is a trading name of Clydesdale Financial Services Limited, a wholly owned subsidiary of Barclays Bank PLC. Clydesdale Financial Services Limited is authorised and

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* Calls to 03 numbers are charged at the same rate as dialling an 01 or 02 number. If your fixed line or mobile service has inclusive minutes to 01/02 numbers, then calls to 03 are counted CarDealerMag.co.uk | 17 as part of this inclusive call volume. Please check with your service provider. To maintain a quality service we may monitor or record phone calls.

Power Awards.

CAR DEALER POWER

Staying power! Our awards reach milestone so join in the occasion We’re proud to launch the 10th Car Dealer Power survey this year – once again giving you the chance to let manufacturers and suppliers know who’s best and who needs to up their game

e can hardly believe it but it’s true! Yes, Car Dealer Power – the survey that lets dealers say exactly what they think about their manufacturers and suppliers – has reached double figures! We ran the first one in 2010 – making this year’s survey the tenth one – and ever since the inaugural Car Dealer Power, more and more dealers have expressed their honest opinions. That’s because we don’t ask for any identification from the people making the nominations, so there’s no fear or danger whatsoever of any reprisals. And your opinions really do matter, because we make sure they’re seen by the people who need to be made aware of them. All you have to do is give marks out of 10 and

honest views in our straightforward, no-nonsense survey. It’s on the next three pages, but you can complete it online at CarDealerPower.com if you prefer, where, again, we guarantee confidentiality. We want you to tell us which manufacturers and suppliers are the best and how good they are at helping you. For example, what parts do you use, who do you go to for advice, and who makes sure you get the most out of the internet? We also want to know, though, which are the ones that give you grief, so don’t hold back! Your votes and views will be carefully collated to provide the list of winners – as well as a stark picture of the companies that aren’t up to scratch. The findings will be shared, so it’s entirely possible YOUR feedback will make manufacturers and suppliers change how they operate! If you’re a supplier to the motor trade, you

can get your customers to nominate you, which means that with enough support, you could be taking home one of our prestigious gongs.

CAN I BE TOTALLY HONEST? Yes! We want you to shoot straight from the hip – hence the full protection of anonymity. Once the opinions have been considered, the marks totted up and the votes collated, we’ll be holding our glittering awards night on Thursday, September 26, 2019 in Portsmouth at the Spinnaker Tower, with its stunning views. Please make sure that you spare a little bit of time to complete the form – either in this magazine or online. It won’t take longer than 10 or 15 minutes and your opinions and votes could make a HUGE difference.

Want to keep your copy of Car Dealer Magazine pristine? You can also enter online at CarDealerPower.com

18 | CarDealerMag.co.uk

The easiest way to fill in the survey is online at CarDealerPower.com We’ve made everything simple and quick. All you have to do is give a mark out of 10 where shown and add comments. This is totally confidential, so don’t be backward in coming forward! CAR MANUFACTURER 1. Which car manufacturer do you represent? If it’s more than one, please fill in the survey more than once. You can do this online at CarDealerPower.com  Abarth  Alfa Romeo  Alpine  Aston Martin  Audi  Bentley  BMW  Citroen  Dacia  DS  Ferrari  Fiat  Ford  Honda  Hyundai  Infiniti  Isuzu  Jaguar  Jeep  Kia  Land Rover  Lexus  Lotus  Maserati  Mazda  McLaren  Mercedes-Benz  MG  Mini  Mitsubishi  Nissan  Peugeot  Porsche  Renault  Seat  Skoda  Smart  SsangYong  Subaru  Suzuki  Toyota  Vauxhall  Volkswagen  Volvo  Other (please name) 2. How do you rate your manufacturer with regard to its finance offers?

3. How do you rate the warranty your manufacturer offers? Does it cover everything it needs to and is it easy to administer?

8. How good is your manufacturer with regard to the internet? Consider the support it gives your online offering, how leads are fed down to you and the quality of its website.

13. What do you think of your car manufacturer’s bonus structure?

10 Comments: ............................................................. ...................................................................................... ...................................................................................... ...................................................................................... 15. Which car – from any manufacturer – deserves the title of Car Dealer Power Car of the Year and why? ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... 16. Which manufacturer has produced the best marketing scheme this year and why do you think so? ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... 17. Who is your manufacturer of the year and why do you think so? ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... If you represent more than one manufacturer you can fill in this survey again online by visiting CarDealerPower. com, photocopying these pages or emailing dave@blackballmedia.co.uk for a copy. All requests will be treated confidentially. Any comments you wish to make will be most welcome. These may be used in the magazine but will be attributed anonymously.

CarDealerMag.co.uk | 19

Power Awards. 3. Website Design For Franchised Dealers Who do you use?................................................................................ Please provide a mark out of 10.

THE SUPPLIERS This section is about finding the best suppliers. The winners will not be decided solely by being the most popular, but also how good they are at providing you with a service. Weâ&#x20AC;&#x2122;ll be naming a winner for each category and two highly commended places, which will be announced at the Car Dealer Power ceremony on September 26. For each category, first tell us who you use, then give them a mark out of 10, and finally add any comments you have.

1. Warranty Supplier Who do you use?................................................................................ Please provide a mark out of 10.

Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... 5. Sub-Prime Finance Supplier Who do you use?................................................................................ Please provide a mark out of 10.

Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

2. Personalised Video Provider Who do you use?.................................................................................. Please provide a mark out of 10.

6. Prime Finance Supplier Who do you use?................................................................................ Please provide a mark out of 10.

8. Trade Insurance Provider Who do you use?................................................................................ Please provide a mark out of 10.

10 10 Comments:.............................................................................................. ...................................................................................................................... ..................................................................................................................... ...................................................................................................................... ......................................................................................................................

Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... 12. Provenance Checks Who do you use?................................................................................ Please provide a mark out of 10.

Want to keep your copy of Car Dealer Magazine pristine? You can also enter online at CarDealerPower.com

20 | CarDealerMag.co.uk

13. Cleaning Products What do you use?................................................................................ Please provide a mark out of 10.

17. Online Auctions & Trade-To-Trade Remarketing Who do you use?................................................................................ Please provide a mark out of 10.

Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................

14. Recruitment or Training Agency Who do you use?................................................................................ Please provide a mark out of 10.

18. Best Lead Generation Tool Who do you use?................................................................................ Please provide a mark out of 10.

The closing date for nominations is August 16, 2019. What do you mean there’s no rush? Trust us – it’ll be here before you know it, so make sure you get your surveys in soon! Send your completed surveys to:

Car Dealer Magazine

Blackball Media Ltd Haslar Marine Technology Park Haslar Road Gosport, PO12 2AG

20. Product Innovation of the Year Your nomination................................................................................... ...................................................................................................................... Comments:.............................................................................................. ...................................................................................................................... ....................................................................................................................... ....................................................................................................................... 21. The Extra Mile Award (The company or individual that has gone the extra mile for you somehow this year) Your nomination................................................................................... ...................................................................................................................... Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ....................................................................................................................... .......................................................................................................................

Want to keep your copy of Car Dealer Magazine pristine? You can also enter online at CarDealerPower.com

CarDealerMag.co.uk | 21

Dashboard. RE-EVALUATION

All change! Tesla rethinks its plans E lectric car brand Tesla has re-evaluated its plans to introduce drastic price drops and close all its stores to focus on online-only sales. On February 28, the American EV maker announced that it would be ‘winding down many of our stores’ over the next few months, with ‘a small number of stores in high-traffic locations remaining as galleries, showcases and Tesla information centres’. However, a blog post from Tesla has since announced that it will keep ‘significantly more stores open than previously announced’. The blog also cast doubt on its plans to continue selling cars at the newly reduced prices, leaving the picture far from clear. The decision to close dealerships was originally made to cut costs and enable Tesla to reduce the price of the Model 3 hatchback from

by REBECCA CHAPLIN @believebecca

$44,000 (circa £33,200) to $35,000 (circa £27,000) in the United States, although the price for UK models was not confirmed. The smallest Tesla wasn’t the only one to see a price drop, though, with the Model S saloon and Model X MPV also included. Previously, a Model S P100D cost £131,305, but having been renamed Ludicrous Performance, its cost was cut to £83,300, representing an enormous saving of £48,005. Subsequent changes to prices haven’t been confirmed. Tesla has said the price of the $35,000 Model 3 won’t alter and that any increases ‘will only apply to the more expensive variants

of Model 3, as well as Models S and X’. The latest changes aren’t immediate, though, and Tesla buyers have until May 18 to take advantage of the discounts that were originally announced. The number of stores that will remain hasn’t been confirmed either, but the brand has said it will reopen some it has already shut. The company said: ‘When we recently closed 10 per cent of sales locations, we selected stores

that didn’t invite the natural foot traffic our stores have always been designed for. These are stores that we would have closed anyway. ‘A few stores in high-visibility locations that were closed due to low throughput will be reopened, but with a smaller Tesla crew. ‘In addition, there are another 20 per cent of locations that are under review, and depending on their effectiveness ... some will be closed and some will remain open.’ Rebecca Chaplin, p27

DEALERS’ DEN

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Wednesday

June 12

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We’re looking for five of the best automotive start-up companies to take centre stage in Dealers’ Den at CDX 2019 Email us now at sales@blackballmedia.co.uk and tell us why you should take part In association with

CDX and all related content and sessions are subject to change or cancellation at any time up to and including the event day.

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Local insight to help your business succeed. At Close Brothers Motor Finance, our dedicated account managers help UK car dealers make the most of local market conditions, by combining customer insight with specialist local knowledge. Find out more at closemotorfinance.co.uk/insight

CarDealerMag.co.uk | 23

Dashboard.

ROUND 4 – WEST

Blade Group are a cut above in our final qualifier Adam Weller reports from the fourth heat of our Go-Karting Challenge in association with Close Brothers Motor Finance.

lade Group Volkswagen took the spoils in the fourth and final regional qualifier of the Car Dealer Magazine Go-Karting Challenge, held in association with Close Brothers Motor Finance. The West qualifier – which was held at TeamSport Bristol – was a thrilling encounter and more than matched the previous three in terms of entertainment and excitement. The 90-minute race echoed previous rounds, with a trio of teams consistently troubling the top of the leaderboard throughout. The teams rivalling Blade Group (Kart 18) for top honours were Winford Ford (Kart 12) and The Splends (Kart 14) – a team formed of Close Brothers customers from various dealerships. Both held the lead at various points during the race, and the Winford outfit began in pole position. However, a bad start from Tim Hocking left them languishing close to the back of the 10-strong field before they arrived at turn one. This left Kart 3 – driven by Cool Runnings, another Close Brothers-fronted team – in the lead in the opening stages of the race. James Arnold of Painswick Valley Car Sales was behind the wheel for the first stint. Despite having good pace, Arnold would soon be challenged and passed by Miles Rudman of All-Stars in Kart 15. Rudman, the director of Wishaw Car Centre, Sutton Coldfield, was one of many experienced racers on the grid. He competes regularly in the National Legends Championship alongside teammate Sy Harraway 24 | CarDealerMag.co.uk

who, by coincidence, was also in attendance, driving as part of the aforementioned Splends team in Kart 14. Before the race, Harraway commented: ‘It’s crazy, because I had no idea he was going to be here, and it’s not just him either; the man who looks after both of our cars in the Pro-24 team – Craig Phillips – is also in Kart 15 with Miles.’ The All-Stars kart containing Rudman would ultimately build a gap over the first 24 minutes of the race, at which point second-placed outfit Cool Runnings pitted. After this early stop, the team would scarcely appear in the top five again, ultimately finishing sixth. Meanwhile, All-Stars also fell behind later in the race, thanks to a variety of issues, including a penalty. By the time the half-distance mark had been reached, the three primary contenders had gapped the rest of the field, with Winford Ford

(Kart 12) enjoying a marginal advantage. However, they were shown a black flag during the last 10 minutes and had to serve a penalty in the pits. That setback put the team’s final driver, Charlie Parker, down to second position, although he was still close behind the Blade VW team – otherwise referred to as the ‘Beautiful Blades’ – who ran brand manager and former kart racer Andrew Perry in the last stint. In the closing moments, both Parker and Perry had to watch out for Harraway, who was hot on their heels. He had reduced a gap of 20 seconds to fewer than seven when Parker emerged from the pits, and despite having to fight through traffic, the Splends driver managed to take second position. He didn’t have time to catch Perry up, however, finishing 4.748 seconds behind him. Parker completed the podium just 5.667

Alternative careers to selling cars.

PHOTOGRAPHY: JON REAY

Feedback, p30-31

See more go-karting pictures at bit.ly/bristolkart

The final countdown! As you read this, we will be just days away from the final of the Car Dealer Go-Karting Challenge in association with Close Brothers Motor Finance. Having taken to all corners of the nation to find the best dealers-turned-racers, the top performers from each regional qualifier will face off at TeamSport Reading. Arguably the most impressive venue on our calendar, the 900m ‘International’ layout at Reading combines two separate circuits to create a track with almost every challenge that an indoor karting centre could possibly offer. A mix of high-speed sweepers and late braking zones, joined together by the longest straights encountered by our teams since the first qualifier in October, are sure to make this race a cracker! Rebecca Chaplin, editor of Car Dealer, said: ‘We can’t wait for the final. A team from the magazine will be taking part and of course there will be full coverage in the next issue. Bring it on!’

The fourth and final qualifier delivered a thrilling night of racing

seconds off the victory. All three top teams had completed the same number of laps – 127 – during the exciting encounter. Afterwards, Perry commented: ‘It was a very close race. The circuit’s really good and we had a great night.’ Fellow Blade team members Paul Adams, Cameron Ali and Scott Aherne – who had been employed just 20 days before the race – all agreed that they had enjoyed their night out and thanked Close Brothers Motor Finance for sponsoring the event. Blade VW and The Splends both automatically qualified for the final of the Car Dealer GoKarting Challenge, which will be hosted in Reading on March 28. Being the most recent winners, the ‘Beautiful Blades’ will certainly have momentum on their side on the big day.

Full results: Round 4 – West

1. Blade Group Volkswagen

127 laps

2. The Splends

127 laps

3. Winford Ford

127 laps

4. The Helmets

126 laps

5. Team Roxy

126 laps

6. Cool Runnings

125 laps

7. The Big Dogs

124 laps

8. CMC

123 laps

9. All-Stars

123 laps

10. Wacky Racers (MyMotorPlus)

121 laps

Dates and tracks TeamSport karting venues and dates: Round 1 – North

Leeds, October 24

Round 2 – South

Eastleigh, November 21

Round 3 – East

Basildon, January 23

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. Timings also taken into account.

CarDealerMag.co.uk | 25

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more than 25 tracks NATIONWIDE

Behind the scenes REBECCA CHAPLIN

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

Sale of the century? A big PR stunt? Or is it a car brand heading for disaster?

onsumers buying Teslas in the first two weeks of March must have thought it was the sale of the century and that their luck was really in. I can’t quite work out, though, if Elon Musk is having a laugh at our expense or if the company really has gone loopy. If you’ve not seen the news, at the end of February Tesla announced it would be closing all dealerships – bar a few that would act as galleries – and that it had dropped prices on all models. A little over a week later, it had decided that probably wasn’t such a fantastic idea and that it wouldn’t be closing so many dealerships. Not only that, but it said it might reopen a few that had already closed and that car prices would be going back up. I think it’s important to remember that Tesla has no advertising budget, and it has made it very clear over the years that it doesn’t intend to start spending. It doesn’t even give away cars free to celebrities and none of the models have been discounted in any way – until now, anyway. We covered on our website the outrage from some customers when they found out their new car was now available for much less just weeks later, or that they could have bought a much more powerful and longer-range one for the same amount of cash. Most were pretty happy, though, as long as Tesla is progressing with its master plan. People and businesses do make mistakes though, and they are allowed to change their mind. The due diligence element of this electric car company seems to be seriously lacking, though. I suppose we’ve all worked for that boss who just won’t listen to reason when they want something done a certain way, and previous form at the business would suggest that that could be what’s happening. However, to say all dealerships globally will be shut and then realise weeks later that they were worth keeping sends my head spinning. Shockingly, it wasn’t the only one to announce that it would be shutting dealerships. Since the last issue of the magazine, Infiniti has said the same thing in western Europe, but somehow I can’t see it doing a complete U-turn in a fortnight’s time. Let’s assume then someone walked into the Tesla boardroom and said ‘You’re all insane’. Let’s not forget, people were buying electric cars at those prices.

I’m not saying people won’t be pleased to save money on their next electric car, but I can’t think of another business that dropped its prices because it was doing well. Secondly, I don’t think we’ve moved beyond dealerships – particularly for electric cars. If you’re buying a second Tesla, you know what you’re getting. Face it, Elon – they’re all the same inside and that’s what’s great about them. If you’re new to the brand though, this is far removed from any car – even electric – you would have driven before and that means people do still need to test-drive. I get that the Model 3 is the future and getting it to that entrylevel $35,000 is crucially important to Tesla’s world domination strategy. However, what happens with the new Model Y and how will buyers get a chance to experience this before they buy? I think Tesla knew this all along – it’s well documented in this magazine how sceptical I am about any huge business making strange strategy choices, and I find it hard to believe that they make last-minute decisions when their road maps stretch at least five years into the future. It seems impossible to me that a brand that knows the new models and technology it will be bringing out even further in the future can make such simple calculation errors that it changes its mind just two weeks later. For consumers who had just purchased, it’s annoying. For people who were considering buying, it’s an incentive. For those in a position to buy, it’s now an unmissable, limited-time offer. Cynical I might be, but I’d be very surprised if I’m wrong about Tesla seeing a spike in sales. No car brand gets the same level of coverage in the media and we keep feeding the machine. It spends no money on advertising as I’ve said, but on a recent trip on the Heathrow Express I saw it enjoying a prime slot on the BBC World Service News show, and the fact it had dropped prices was the top-of-the-hour headline. Never ever have I seen the BBC – or any other news broadcaster for that matter – discussing a price drop on Ford, Vauxhall or any other major brand. Nissan, Honda and JLR have enjoyed some prime TV slots but I doubt they have had the same positive impact on sales. Sale of the century? The biggest automotive PR stunt of recent times? Or just a car brand heading towards disaster? It’s hard to tell at this point, but I get the feeling someone definitely knows something we don’t.

‘I’d be very surprised if I’m wrong about Tesla seeing a spike in sales. No car brand gets the same level of coverage in the media.’

Rebecca Chaplin is head of editorial at Blackball Media and the editor of Car Dealer Magazine. CarDealerMag.co.uk | 27

Dealer Network

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SALES By joining the RAC Dealer Network you’ll receive exclusive benefits to support the growth of your business and drive customer confidence. Use of our trusted brand* / Additional revenue stream from RAC products / Free POS material / 12 months’ free RAC Breakdown Cover / New for 2019: simple Direct Debit option for your customers

Call: 0330 100 3807 Email: dealernetwork@rac.co.uk Visit: rac.co.uk/joinournetwork *76% of used car buyers surveyed who purchased a car from the RAC Approved Dealer Network said that the dealer’s affiliation to the RAC impacted their decision to buy a car from them. (Source: RAC Reviews)

28 | CarDealerMag.co.uk

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

Why modern cars will be written off long before they reach my lot

ight folks, here’s an awkward one. But if we don’t face the elephants in the room, then the elephants will take over – not that that would be such a bad thing really, given the speed at which the human race seems to be de-evolving. But – the future? For the used car business, the burning question is, will there even be one? Not for the franchised outlets, whose job it is to take back cars bought on hire purchase and PCP and resell them on a second-life finance package, but for the traditional independent such as me. It’s not something that bothers me too much, as not only have I evolved my business into one that sells more specialist vehicles these days, such as prestige and modern classics rather than the bread-and-butter variety, but by the time the full impact hits in about a decade’s time I’ll probably have retired. (Long-term readers, I acknowledge I said this a decade ago…) So, why my pessimism? Well, it’s simply that cars themselves have changed, and while the used car industry has always evolved, my rather cynical view is that more powerful forces are at work to ensure that cheap motoring – at least where you fully own a car – is set to become a thing of the past. Politicians and legislators alike have been sucked in by the air quality debate, with the lemming-like public guilt-tripped into thinking that by buying something with a ‘Hybrid’ badge on it (it matters not if it’s a Range Rover or a Lexus), all that comes out of the exhaust will be bluebells and dandelions. Jump behind the wheel of a mid-2000s Jaguar, though, and to those who refuse to believe anything other than their own opinion, you become a pariah. Just last week, I had one smugfaced so-and-so in a Toyota Pious pull up alongside me at the Small Heath Island and tell me off. The Daimler V8 I was driving was, in his words, ‘like you – a bloody anachronism’. Suit yourself, mate – at least I don’t drive a car with tail-lights like bat wings and an on-off switch identical to the one on my tumble drier. It’s going to get worse, too. Whisper it, but a mid-2000s dieselengined car is probably one of the cleanest, most efficient and affordable ways to travel, yet media hype has made it practically impossible to sell such things. I struggled to get £500 for a 2006 Mondeo TDCi that I took in

part-ex the other week, and I resorted to scrapping a Peugeot 407 (every cloud has a silver lining, I guess…). Why? Because we’ve been told that diesel is ‘dirty’ and that we should all get ourselves substantially in hock with enormous loans for electro-hybrid things that bing, bong, beep and park themselves. Indeed, one of the things that people worry themselves with is that diesel car owners will very soon get ‘penalised’. I can only assume this means an increase in vehicle tax costs, but from the way in which their owners are running for the hills, you’d think they were staring in the face of a seven-to-10 stretch. Our government may be utterly incompetent, but jailing people simply for their beliefs is surely…. Oh, right. Anyway, I digress. Surely an extra twenty or thirty quid a month on the price of vehicle tax – while not ideal – is cheaper than £250 a month on a never-ending PCP. Then there’s the double-edged sword of PCPs in the first place. They’re based on a minimum future resale value, yet if the PCP bubble is slowly killing off the used car business, those minimum future values will cease to exist. It’s happening already – I can flog an eight--to-15-year-old car very easily to a very different type of customer (often wealthier) than those who are buying new. Anything between three and eight years old, though? Forget it. It’s really hard work out there, because once you’ve run the sums, it’s often far less hassle for the punter to pick up something new with a manufacturer’s warranty. That’s only half of it, too. If you look at all the driver assistance systems on today’s cars, and the fact that when they’re fitted they have to work, we’re going to get to a stage where we’re throwing away perfectly good cars because a function we never asked for doesn’t actually, er, function. My next-door neighbour was having a rant over the hedge the other day as he’d had a minor traffic altercation during which he lost his driver’s side door mirror. Alas, said door mirror also included a radar for helping the car do the parking for him, a camera for helping the car do his seeing for him, and a blind-spot detector for helping the car do his driving for him. As a result, a replacement door mirror was a dealer-only part, priced at a cool £595 plus VAT. Compare that with the cost of the same part for my ‘filthy’ Daimler V8. £15 on eBay. And that, my friends, is why today’s cars will be written off long before they end up on a forecourt like mine…

‘It’s often less hassle for the punter to pick up something new with a manufacturer’s warranty.’ ’

Who is Big Mike? Well, that would be telling. What we can say is he’s had more than 40 years in the car trade so has probably forgotten more about it than we’re likely to know. CarDealerMag.co.uk | 29

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Our website at CarDealerMag.co.uk

If you didn’t sell cars, IF YOU didn’t sell cars, what would you be doing? Another trade? Prior to my planning work at the council, I did think about being a doctor and moving to Australia. Or what would you like to do instead? (Not everyone enjoys selling cars, and as with most walks of life, I am sure some of you just do it as it pays the bills.) ExCouncilJobsworth

Picture of the month

I left a very good job and started trading cars a couple of years ago to get a better work-life balance. The reality is, I am actually working more hours at 50 years old than I ever have, but I love it (most of the time...). We all know the recipe for success and it would be easily achievable if the stock required was readily available, but it isn’t and that’s that. I look at some of the guys on here and it gives me the push I need sometimes to say success is achievable and it’s up me to do it. DBDlloyds

I got out of selling cars for an easier life. I am a dent and screen guy who only wants 20 hours a week and I am also a distributor for a USA tool company. When dealing cars, I always wanted a product that when sold I could just replace it easily with another. Delta Kits gives me that. Screenman I would own a garage repairing cars. And vans. After years of paying garage bills, I think that business is much better than my own – purely from an income point of view. It would be one of those garages approved by every scheme under the sun and which always includes a £15 oil flush in its invoicing. Also, the receptionist would always ask the customers if they were sitting down before starting to quote. Nick M.K. I’d love a garage/workshop. Although I fear it would soon be taken over by my own personal cars. I have been a mechanic since the age of 17 (32 now, own sales business for four years) and never worked a day in sales until starting my own company. One day, when I have enough money and space, I would love a garage. I have a fear of overheads and loans, hence why my pitch and office is on land I own and stock is self-funded. My plan is to incorporate a workshop into my sales business when I have sufficient space or perhaps move in the next three to four years. C B Having a garage is usually not the problem – it’s hiring and retaining good staff that is. boring dave

was by setting up a profit share in the business. In the long run, it was the best move I ever made. Oddly enough, I do less these days and earn more. justina3

The hard-working staff of Car Dealer Magazine do get the occasional treat – and the most recent surprise was a slap-up pizza-based lunch on the day after our successful Aftermarket Excellence Awards in Portsmouth. Car Dealer Dave was definitely not slow to grab a slice (or three) of the action... nom nom! I was talking with a garage owner the other week that has just had his best guy leave. He offered him £40k to stay and he still left. Now £40k up here in the north-east is a bloody good wage! Stalker I’d say over the last 12 months, I’ve seen a range of local indies advertising for timeserved spanners – local Mercedes and Vauxhall dealerships too. . . Must be the same as most trades, the few experienced lads who are about are in demand. My lad is a time-served joiner, picks his work, hours and charge rate and he is approached weekly by local and national construction firms with silly offers. Area 51 Only way I have managed to retain decent staff

To do this job successfully, you have to eat and sleep cars and all the problems all day every day. I now only go in for 30 minutes or so per day but I am still constantly trying to think of better ways of doing the job. I used to keep a pen and notepad by the bed in case I thought of something during the night. I think starting and running some sort of charity would be a good idea. Next time someone knocks on your door wanting money for a good cause, check them out with the Charity Commission. A lot of them have directors earning big money for doing very little, I imagine. trade vet An alternative career? A door-to-door salesman I think. Never given it a thought to be fair. I have sold cars for 14 years, it’s the only job I have ever had. I’m not sure if that’s a good or a bad thing. Dan W Probably a dead-end boring office job. The thought genuinely terrifies me and I remind myself of that every now and again. It’s probably why I tend to work seven days and not take much time off. Rory RSC

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Mr Blower picking up his new #Peugeot 3008 GT Line from Leah at Stockton! Thank you for choosing Simon Bailes Peugeot, we hope you enjoy your car! #HappyDriving Simon Bailes Peugeot @sbpeugeot

With an Arnold Clark apprenticeship, you get paid to learn. What’s more, 91% of our apprentices go on to fulltime employment with us. Arnold Clark @ArnoldClark

We have a huge range of new Audi models available. Come and test-drive your new ’19 plate cars now. Basingstoke Audi @basingstokeaudi

‘The Fiat 500 is Italy’s most popular motorised export, delivering value, good looks and a fun-to-drive experience like no other car from this sun-kissed Southern European nation.’

Check out what Fiat 500s we have in stock now! #ImperialCars Imperial Cars @Imperialcar Had a fantastic time at our annual @Lookers conference in Belfast. Good to speak with colleagues from across our company and absolutely delighted to have been nominated for our excellence awards in Berlin. #LookersConference2019 #lookers Jon Sadler @Jonthemoney

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what would you do? PULLED OVER

In trouble with the police over plates I WAS driving to deliver a car this afternoon and got pulled over by the police due to only displaying a trade plate in the front window. A colleague of mine had put one in the front and one in the back window but I assumed that he must have forgotten to put the back one in and was honest with the police officer. His sergeant waddled around the car checking everything out trying to find something else wrong, failed to do so, so told his lap dog to fine me £50 for an incorrectly registered vehicle. I got to my destination to find the plate on the floor in the boot. Anyone else had a similar experience? I don’t think ‘incorrectly registered vehicle’ was the right thing to fine me for if anything at all. TobiasWalker

Tells you on the letter how to display trade plates correctly. In the windows isn’t the correct way. D&M I’ve lost too many displaying them correctly. I would rather have them in the car with me, especially as they’re such a nightmare to replace. TobiasWalker

March car sales... do they have a spring in their step? How’s March looking on the sales front? It’s slow here in Oxfordshire. Barclaywoodmotorco Jan: excellent; Feb: excellent; March: off a cliff. I’m really concerned. I have a decent stock profile and they’re well priced but just no inquiries. Blenheim Car Sales Very poor – loads of messers and dreamers. andymc1973

The rules are there – please don’t moan if you are not willing to comply as it gives all us other motor traders a bad name. Oh, and if you are losing plates, you are doing something wrong. boring dave

On for a record breaker down here.

At £50, I wouldn’t even blink an eye – it could have been much, much worse. Get yourself some rubber old-skool TP hangers (like the ones the main dealers use) and you’ll be fine. Mark101

Glad to hear it mate. We’re having it away at the moment. Had a quiet October and November, so it’s about time we got a good month in. Real shortage of nice £5k generic stuff around our way at the moment which is helping massively along with some moves made previously that are starting to pay dividends. grant8064

The rules around displaying trade plates are all to cock. How you display them by the book is crap and unachievable on some cars. The system need overhauling. whitestone679231

grant8064 Same if it continues. Around 20 so far. Rory RSC

Just had a quiet few weeks, but it will change during the second half of month. Stephen

Scammers will thrive as long as people are greedy IN THE internet age, is the motor trade more or less honest, or just the same as it’s always been? I’m sure motor traders are the same – some good, some bad, but what do we think about the business as a whole? XFS ‘Is it easier or harder to get ripped off now?’ To find out, send £100 to me now! David Ayers It is so simple to check anything out these days with the internet. That said, no matter how easy you make something, you can never replace common sense. justina3 There have always been get-rich-quick schemes as long as there has been currency. I remember about 20 years ago a very intelligent, streetwise friend of mine invited me to ‘invest’ £3,000 for it to ‘mature’ into multiples of that once I introduced three more friends to do the same.

When I laughed at him and told him it was a pyramid scheme and only the first few would make money, he got offended. I later found out family members of his were lured into it, lost money and were no longer speaking. Since then, things have moved on. Everything is internet-based as it provides a cover. But scammers are more clever and are finding ways to outsmart us. Scooby who I think it’s still very easy to get ripped. I always think there are loads of garages out there that are awful, yet people will transfer us £10k / £20k / £30k without ever having met us and get a delivery a few days later. Rory RSC Was thinking exactly the same recently. I delivered a car to an elderly couple who sent full money two days before after reserving online on ClickEngage! Sadly, many will get taken in, but

this couple said to my driver it was the reviews and video that gave them full confidence. Sadly, both can be fabricated online these days! umesh All scams have one thing in common: the promise of something for nothing. As long as there are greedy types about, scammers will continue to thrive. tradex We sometimes source cars privately and at least 30 per cent of the time, the ones that seem good have something to hide, whether it be cat C/D or finance. I had one recently where I called the girl selling the car to ask her why she hadn’t mentioned it was on finance. She said, ‘oh yeah that’s fine, don’t worry, I’m going to keep paying it. I just need the money for other things.’ She wasn’t in any way bad, she just didn’t know she wasn’t allowed to sell a car on finance. MarkTVS

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call 0844 880 2401 or email fafmcsupport@motonovofinance.com *Internally conducted research, year on year comparison for Jan-Dec 2017 to Jan-Dec 2018MotoNovo Finance, a division of FirstRand Bank Limited (London Branch). Registered in England (Branch Reg. No: BR010027) atAustin Friars House, 2-6 Austin Friars, London, EC2N 2HD. FirstRand Bank Limited is authorised and regulated by the South AfricanReserve Bank. Authorised by the Prudential Regulation Authority. Subject to regulation by the Financial Conduct Authority andlimited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential RegulationAuthority are available from us on request. FirstRand Bank Limited (London Branch) is a branch of FirstRand Bank Limited, a public limited company registered with the Companies and Intellectual Property Commission in South Africa (Reg. No. 1929/001225/06) Head office: 4 Merchant Place, Corner Fredman Drive and Rivonia Road, Sandton 2196, South Africa.

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Dashboard. Manufacturers are really switched on to an electric future

Polestar 2 Volvo’s spin-off sports brand, Polestar, unveiled its second model at Geneva – imaginatively named the ‘2’. It’s set to be the brand’s first ‘mainstream’ car and as such it packs a curious mixture of SUV, coupe and saloon styling cues into a single slick package. It’s also all-electric, with a promised range of more than 300 miles.

by TOM WILTSHIRE @mctreckmeister

he Geneva Motor Show is the event the motoring world plans its whole calendar around. Held every March in the Swiss city’s Palexpo exhibition centre, it’s typically the location for European manufacturers to reveal their most important and pivotal models, announce step changes to their brands or corporate strategies and play around with amazing concept cars. This year has proved to be the most electric one yet – and we mean that literally, with virtually every single car manufacturer launching some form of hybrid or electric vehicle. We’ve seen everything from humble hatchbacks to the most powerful road-legal car ever made powered entirely by electric motors. But that’s not to say traditional petrolheads can’t find something to love, too. Here are some of the most exciting cars we found at the 2019 Geneva Motor Show...

Renault Clio

Geneva

It may look pretty similar to the outgoing model but don’t be fooled: this is an all-new model, and one glance at the stunning interior with its vast central screen and premium touches should convince you of that. A plug-in hybrid powertrain will join a range of turbocharged 1.0-litre petrols.

showstoppers Every year the Geneva Motor Show turns up some amazing new cars. Here are the ones we’re most excited about from 2019’s show... Peugeot e-208

Ferrari F8 Tributo The F8 Tributo uses the same engine as the limited-run 488 Pista – a remarkable 710bhp turbocharged V8. Redesigned aerodynamics, reduced weight and fresh styling also appear, and the F8 Tributo promises that its performance will be accessible to a wider range of drivers than the Pista’s was.

Inside

34 | CarDealerMag.co.uk

The new Peugeot 208 is available for the first time as an all-electric model. The e-208’s 50kWh battery promises around 211 miles from a single charge, and it’s mated to a 134bhp electric motor driving the front wheels. In terms of technology, there are LEDs aplenty and a glorious new 3D-effect digital dial pack.

Honda 2025, the year of a fully electrified range p38

Peugeot New hybrid can do 0-60 in under six seconds p41

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VW ID. Buggy

Seat el-Born

The ID. Buggy is testament to the versatility of an electric platform, as having all the powertrain components within the floor means manufacturers can go wild with the body. This has been fitted out like a California Dune Buggy – chunky off-road wheels, weatherproof interior and no roof or doors.

Seat’s first proper all-electric model is based on the same scaleable electric platform as its Volkswagen ID. siblings, but the Spanish brand has crafted what looks like a practical, compact MPV. It’s very nearly production-ready, says Seat, and uses the latest VW Group technology inside and out.

Lamborghini Aventador SVJ Roadster The Aventador SVJ Roadster is only 50kg heavier than its hard-top sibling and packs the same punch, thanks to its 759bhp V12 engine, but you’ll now be able to hear that glorious naturally aspirated engine in all of its high-revving glory, thanks to the roof being lopped off.

Honda E Prototype Despite the E Prototype’s dinky dimensions, Honda will be pricing it as a premium product. But given the reception it’s had, that’s perhaps not as crazy as it sounds. The sleek E Prototype offers a high-tech interior, cheeky styling and plenty of desirability.

Aston Martin Vanquish Vision The mid-engined Vanquish Vision will use an all-new Aston Martin-developed V6 that will also form the brand’s first mainstream hybrid powertrain. Aston’s styling language translates well to a mid-engined silhouette, too.

Pininfarina Battista The latest model from bespoke Italian brand Automobili Pininfarina, the Battista, packs 1,874bhp. Yep, you read that right. Pininfarina claims the all-electric, four-wheel-drive supercar will hit 60mph from rest in less than two seconds, go on to more than 217mph, and manage 280 miles on a single charge, too.

Kia Traditional dealerships are still crucial to sales success p42

Alfa Romeo Arranging as many test drives as possible is key p43 CarDealerMag.co.uk | 35

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Dashboard.

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SSANGYONG

Come and have a chat, potential dealers told Dozens of new recruits sought to get South Korean manufacturer to network target

sangYong UK chairman Jim Tyrrell says the brand has turned a corner here and is starting to make money. As he announced a search for new dealers to join the South Korean manufacturer’s push for sales, the former Ford, Mazda Europe and Mitsubishi executive said the signs were positive for the car maker. ‘It feels like we have turned a corner,’ he told Car Dealer. ‘We’ve made money in January, we’ll make money in February, and March appears to have started quite well. ‘The first day’s registrations are quite a long way up on last year and we think we’ve got an order bank that pretty much gets us to our target, so we’ve got through the first quarter.’ Tyrrell admitted some of the brand’s dealers were finding the changes made since the manufacturer’s executive team was shaken up two years ago a little tough, but that they’re helping the firm take a step in the right direction. ‘Some of our dealers don’t like the programme,’ he said. ‘But our good dealers are not uncomfortable with it and are getting on with it. Our top 10 dealers represent about half our volume. That’s not right and I’ve been putting a bit of pressure on the organisation this year.’ In 2018, SsangYong registered 2,754 cars, down 23 per cent on 2017. Back then, a lot of the volume was forced, though, and now the new management team of Tyrrell and managing director Nick Laird has changed tack. The duo are aiming for 4,000 sales with their four-car line up. At Geneva they pulled the covers off a new Korando that’ll join the range later this year, and it’ll be followed next year by a fully electric

by JAMES BAGGOTT @CarDealerEd

version with 280 miles of range. Tyrrell said: ‘We have a viable business at 4,000 units and we have a very nice business at 6,000, but I think we have the potential to get to 10,000.’ The firm has split the country into 110 dealer territories – all within 40 minutes’ drive of each other – and now the firm is focused on growing from the 60 forecourts it currently has to that number. Tyrrell believes each should be selling a minimum of 100 new cars a year and 100 used. He added: ‘We’ve identified the top 20 territories that are empty that need filling and the top 10 territories where we’ve got dealers that aren’t doing their job and that’s where we’re focusing. The kind of dealers we want are those who are probably privately owned, probably not very big, so maybe up to £100m turnover, maybe £150m, and they might have five showrooms, or five different brands.’ Admitting that some dealers may have been put off by the way the business had been run previously, Tyrrell said potential investors should look at his track record. ‘Things have changed. They should have a chat with me,’ he said.

SsangYong’s new Korando will join the range later this year

SEAT

‘Lots for our brand to get excited about . . .’ SEAT MD Richard Harrison has full confidence in the brand’s Cupra performance arm – and hopes it will give dealers an exciting new avenue for sales. At the Geneva show, Seat unveiled the coupecum-SUV Formentor – a high-performance plugin hybrid Cupra – which Harrison believes will be another popular offering for dealers. The car maker has split Cupra off into a separate brand and displays them separately in showrooms. ‘Cupra gives customers something else from Seat and they’re proving popular,’ he told Car Dealer. Also at the show, the maker took the covers off the el-Born electric vehicle, which will launch in 2020. Harrison admitted more needed to be done in the UK to improve charging infrastructure, but said he was ‘excited’ by the opportunities offered by electric vehicles such as this car.

Seat’s Formentor

‘Our top 10 dealers represent about half our volume. That’s not right and I’ve been putting a bit of pressure on the organisation this year.’ SsangYong UK chairman Jim Tyrrell CarDealerMag.co.uk | 37

Dashboard.

MORGAN

Plus Six gets turbo boost from BMW six-cylinder MORGAN revealed an all-new model at the show – the Plus Six. The replacement for the iconic V8-powered Aero 8 features a range of new additions, with the biggest change under the bonnet. It’s the first Morgan to use a turbocharged engine – an in-line six-cylinder unit taken from BMW that produces 335bhp and is sent to the rear wheels through a ZF eight-speed auto ’box. Morgan claims the Plus Six will hit 60mph in four seconds and carry on to a 165mph top speed, returning a claimed 38.2mpg combined and emitting 170g/km CO2. It sits within an allnew bonded aluminium chassis, which is both stiffer and lighter than previous efforts by Morgan using the same technique. However, in keeping with the brand’s building practices, it still uses wood – English ash – within the car’s frame. The looks of the car are classic Morgan albeit updated, including LED automatic headlights. The Plus Six is on sale now, with prices starting at £77,995.

HONDA

2025: The year of fully electrified range Manufacturer ups the ante after originally making its pledge for two-thirds of vehicle line-up by JACK EVANS @jackrober

onda may have revealed its e Prototype at the show but the biggest news from the manufacturer was its decision to make 100 per cent of its line-up electrified by 2025. It had been two-thirds, and Phil Webb, head of car for Honda Motor Europe, said: ‘The statement we’ve made is huge. We’ve just launched CR-V Hybrid which has worked well, and because we’ve committed to making all cars electrified by 2025, you’re going to see a lot more electrified product coming through. It can only enhance what the brand is about. It’ll have a real positive effect.’ With so many other manufacturers tipping towards electrified versions of their cars, it’s little wonder that Honda made the announcement. But dealers across the country are now being faced with a whole new type of product – and one that requires cutting-edge technology to be explained accurately to the consumer. Webb stated that the process of training dealers up on these new vehicles had kicked off already, saying: ‘We’ve already started the journey towards ensuring that all of our dealerships are fully up to speed with electrified cars. ‘Not one of our dealers could take delivery of an electrified vehicle without their technicians and the rest of the staff going through e-learning.’ However, the process isn’t going to be an easy one. ‘It’s a slow journey in terms of how dealers are selling these new types of cars’, said Webb.

‘Electric cars have got a long road ahead of them before they become commercially acceptable.’ Dave Hodgetts, Honda UK MD 38 | CarDealerMag.co.uk

The shape of things to come for Honda – the e Prototype ‘We talk to our network a lot about how we’re going to market. A lot of customers are coming to a showroom having done a lot of research. ‘So we need to make sure that a dealer’s social presence and website are set up to give the most amount of information possible – and sometimes they aren’t. That’s where they have to become smarter, better and more agile. ‘We can’t wait for the cars to arrive, however – it needs to be sorted now.’ But with all of the talk of electric cars echoing around Geneva’s vast and cavernous halls, there was little mention of anything holding back the technology. It wasn’t something Honda UK managing director Dave Hodgetts was shy about discussing, though, telling us: ‘There are a few things which are holding electric cars back. The first is cost, and because consumer demand isn’t naturally there – maybe because of range anxiety. ‘I think what we need is for people to actually experience the car, or even just for their neighbour to get one. ‘Electric cars themselves have got a long road ahead of them before they become commercially acceptable. And that’s before limitations such as infrastructure.’ Webb added: ‘What legislation is doing and forcing manufacturers to sort is to take the customers along on the electrification journey with us. We’ve got to be better at explaining what electric cars do and how they work. Customers don’t have a solid understanding just yet.’

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RENAULT

Dacia to serve as test for online retailing

Honda takes covers off latest all-electric prototype

fter impressing with the Urban EV concept at the 2017 Frankfurt Motor Show, Honda unveiled its latest allelectric prototype in Geneva. Dubbed the e Prototype for now, it’s one of Honda’s most advanced vehicles to date – thanks to a raft of features. Built on a newly developed platform – which could be adapted in the future for models up to the size of the HR-V – the E is rear-wheel drive, with the motor mounted on the rear axle. That does compromise the boot space, however. Although official figures have yet to be confirmed, Honda says the compact EV will be able to go for more than 200km (124 miles) on a single charge. The battery itself is based on the same unit used in the Accord PHEV sold in the US and built by Panasonic. Honda also said the power output was comparable to similarly sized EVs, such as the Renault Zoe and Volkswagen e-Up – so expect it to develop around 100bhp. The battery is rapid charge-compatible too – capable of going from flat to 80 per cent in 30 minutes. Inside, the E has a new and completely digital dashboard that features five screens and spans the width of the car. Instead of conventional wing mirrors, the vehicle comes

with cameras on the wings, with six-inch displays showing images from each side. A rearview camera will also be used, with the feed displayed where the mirror would normally be. Two other screens team up as the infotainment system, which uses a co-pilot set-up that allows the passenger to swipe new navigation instructions and other information across to the driver’s screen on the go. The model will be built in Japan, with European sales beginning before the end of 2019. Deliveries are expected to start in the early part of 2020. Pricing has yet to be announced, but Honda hinted that it will be at the higher end of the compact EV market – so expect a starting figure of around £30,000.

Honda’s e Prototype has a digital dashboard that spans the width of the car

A NUMBER of manufacturers are looking to take the new car buying process to the web and Renault could be next – should sub-brand Dacia find success down that path. In November, the Romanian firm’s UK arm launched its Dacia Buy Online service, allowing customers to complete the entire process from their couch, office or even bathroom – and it’s something Renault is watching closely. Jean-Christophe Kugler, executive vicepresident for Renault’s European operations, told Car Dealer: ‘The line-up is simpler, so it’s easier for the customer to make their decision on the internet and we propose a complete experience, with financing, everything, included. As it’s a first experience, we want to learn from that experience. It’s really a test-and-learn example.’ Kugler said he believed the UK was a great starting point for launching an online service, as he saw customers here as ‘very digitalsavvy’. CarDealerMag.co.uk | 39

Dashboard.

MAZDA LAMBORGHINI

After the Aventador will come the hybrids LAMBORGHINI wowed the crowds with a dramatically styled droptop Roadster version of the new Aventador SVJ, complete with a red-blooded naturally aspirated V12 engine. No turbocharging, no electric element, just bullish Lamborghini spirit – dressed up in a glamorous copper finish. However, the brand expects its next generation of supercars will use hybrid systems ‘starting with the Aventador follower’, according to chief commercial officer Federico Foschini. ‘We are continually looking to this trend,’ he said. ‘But hybridisation must also fit within our ‘‘performance’’ DNA. We will have a mix including V12 and electric powertrain. This is a natural route to electrification for us.’ The Italian company is looking to innovate further, already seeing more than 70 per cent of orders for its Urus SUV coming from newcomers to the brand. Foschini added: ‘We will increase our sales volumes again this year compared to last year, when we delivered a record 5,750 cars to customers. We expect between 7,000 and 8,000 deliveries but we are up to it.’ 40 | CarDealerMag.co.uk

‘Diesel still has a part to play in our cars’ As the CX-30 SUV is unveiled, chief executive says there’s still scope to develop the combustion engine, despite public’s jitters over oil-burners.

iesel has certainly experienced its fair share of bad press lately. Dieselgate, mounting concerns over air pollution and ever-stricter regulations have all conspired to turn people against it. As a result, it’s being ditched by the public, with car makers experiencing a huge drop in the number of people getting their hands on new oilburners. But according to Mazda Motors UK chief executive Jeremy Thomson, there’s still life in the old fuel yet. ‘I still think there’s a place for diesel, particularly in larger cars and for longer-distance drivers. It remains a solution which is important, despite some of the negativity around it,’ he said. His comments came as Mazda unveiled a new compact SUV – the CX-30 – which will be fitted with the firm’s latest engine: a petrol powertrain that combines the responsiveness of unleaded with the torque and efficiency of a diesel. And while others quickly ditch conventional powertrains, Thomson is sure they’ll continue to play a part in Mazda cars in the years to come. ‘SkyActiv-X is an intriguing solution when everything seems to be a bit binary – it’s either an old-fashioned internal combustion engine or an electric motor. ‘What we’re saying is that there’s still a huge opportunity to develop the combustion engine to be a much more effective

by JACK EVANS @jackrober

solution to today’s and tomorrow’s needs.’ But, he added: ‘We’re not saying there’s no place for electrification, though.’ It’s not just Mazda’s petrol and diesel engines that are being refined, either – the buying experience is, too. ‘We’re rolling out concepts such as Mazda MyWay,’ said Thomson. ‘We get a fully salaried ‘‘brand ambassador’’ to drive a car to the customer’s door at their convenience, with a view to allowing them to drive on the roads they know and feel comfortable with. It allows people to experience our product in the best possible way. There’s no pressure either, as the brand ambassador has nothing to gain by the consumer buying the car.’ And it’s a process that’s been paying dividends, with Thomson telling us that the system has already equated to 450 sales. As Mazda pushes into the future with two new models – the aforementioned CX-30 and the new 3 – it appears that it’s moving towards a more refined experience, both in terms of its cars and the dealer experience.

The CX-30 is Mazda’s new SUV

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The new Peugeot 208

PEUGEOT

Push towards better emissions sees company targets change Electrified version of 208 hatchback is introduced – but 508 Sport Engineered Concept shows performance-led cars are still important.

any manufacturers at Geneva were touting electric as the powertrain of the future for a multitude of reasons – performance, increased interior space and lower running costs – but for Jean-Philippe Imparato there was one key aspect: achieving stringent EU air quality targets. ‘If you can’t meet upcoming emissions targets, you’re dead,’ said the straight-talking chief executive of the Peugeot brand during the show, which saw the manufacturer introduce an electrified version of its new 208 hatchback, along with the presentation of its plug-in hybrid 508 Sport Engineered Concept. And this push towards better emissions mean that company-wide targets are changing too. ‘We want customer satisfaction, improved market share and profit – these aims have barely changed over the last 100 years,’ said Imparato. ‘However, now we add CO2 targets. If you aren’t compliant, market

‘If you can’t meet upcoming emissions targets, you’re dead.’ Jean-Philippe Imparato

by JACK EVANS @jackrober

share doesn’t matter.’ But achieving these targets is unlikely to come without a cost, according to the Peugeot boss. ‘You don’t cope with this type of trajectory without any collateral effect. ‘We will not produce a car which emits 300g/ km CO2 and balance it out with an EV that produces 0g/km – we’re doing it ethically.’ Imparato also believes that the push towards electrification could have an effect across the board, with some suppliers bearing the brunt of the change into electrified vehicles.

508 Sport Engineered Concept

‘It is not a question of avoiding passing costs to the customer. Do I think that meeting emissions targets will have an impact? Yes. You will have to cut some engines, and therefore cut some suppliers.’ This goal isn’t going to stop the brand from making exciting, performance-led cars, however, as shown with the previously mentioned 508 Sport Engineered Concept – a normal hybrid saloon packing around 307bhp and capable of hitting 60mph from dead in around four seconds. It all kicked off with the reveal of the e-Legend concept, according to Imparato. ‘The day when we saw the amount of interest in the e-Legend concept was the day when we decided that we needed to make something that is high-performance and low-emission. ‘The same people who were working on Peugeot Sport and the rally team switched to creating something new.’ It would appear that though many people think that electrification means milk floats and minimal performance, Peugeot – and Imparato – believe that adding a bit of electric power can put a spring in the brand’s line-up of cars, as well as helping it to meet tough new regulations. CarDealerMag.co.uk | 41

Dashboard. The Imagine by Kia Concept was showcased at Geneva

KIA

Dealer partnerships still crucial South Korean manufacturer not pushing online retailing because ‘you can’t test-drive a car online,’ says boss

ia isn’t holding back in driving forward with futuristic electric vehicle technology — but as far as the sales process goes, traditional dealerships are as important as ever. That’s according to Paul Philpott, Kia Motors UK chief executive, who believes that electric powertrains are ‘really important’ to Kia’s future. Speaking to Car Dealer at the Geneva Motor Show, he elaborated on how working with sister brand Hyundai is allowing the two to invest significantly, saying: ‘We sell about three million cars a year, while Hyundai sells almost five million globally a year. Having a global footprint of eight million cars gives us the ability to invest heavily in electrified powertrains, and the R&D going into alternative powertrains is huge.’ Kia is set to introduce an all-electric version of its Niro in April – the e-Niro – and will offer the new Soul exclusively as an electric car in 2020. At Geneva, it also showcased the Imagine by Kia Concept which, while not heading into

by RYAN HIRONS @RyHirons

production, was described by Philpott as a ‘statement of intent’ from the brand. ‘Concepts are there to gain opinion. As you’ve seen from e-Niro and what we will call just Soul, as we will only offer it as electric in 2020, electric is going to be an increasing part of our range going forward. So, the Imagine concept is how can you increasingly make electric vehicles desirable? It is a statement of our design intent, and how we integrate electric platforms with our increasing aspirations with design.’ While the future of the Kia range may be taking a direction towards cutting-edge, the same can’t be said just yet for its sales experience — with Philpott confident in the traditional dealership model rather than making the switch to online retailing. ‘We have no online retailing

right now and I strongly believe that the key part of a relationship between the dealer and the customer is the experience customers get, particularly when you test-drive a car for the first time. You can’t test-drive online,’ he said. ‘It’s a physical experience that people have, and if dealers provide customers with a great level of experience, then I think customers will want to spend £20,000 with someone they can trust. ‘If and when we do anything in terms of online retailing, it will absolutely be in partnership with our dealers, because that’s the physical presence of our brand.’

The Kia e-Niro

CITROEN

‘Yes, diesel’s in decline, but we’ll continue to push it’

One for the future...

DIESEL will play a key role in Citroen’s future – despite concerns around the fuel and the automotive mood music favouring electric vehicles. That’s according to the firm’s UK MD, Karl Howkins. Sitting down to chat with Car Dealer at the Geneva Motor Show, Howkins told us he still believes dealers should be recommending black-pump vehicles to customers – even though he expects a decline in demand. ‘By all means we have to push diesel products,’ he said. ‘For a customer who does high mileage, pence-per-mile they’re probably better off in a diesel than in a petrol. ‘Diesel represents 24 per cent of our mix,

CITROEN revealed the AMI One Concept, below, at this year’s Geneva Motor Show. Technically not a car – more a quadricycle in the same spirit as the Renault Twizy – the electric two-seater has been designed with car sharing in mind. Although the French firm says it’s not going into production, some of the ideas behind it will certainly be used in its business strategies for a ‘mobility solution’ the brand will deploy in the future.

42 | CarDealerMag.co.uk

although we probably see that declining next year.’ It’s fair to say there’s been a war on supposedly ‘dirty’ diesel vehicles throughout the UK recently, which Howkins acknowledged but said was unjustified. He added: ‘Our diesel engines are actually cleaner and more efficient than a lot of our petrol alternatives.’ And while a number of manufacturers are racing to push full-electric and hybrid vehicles into their ranges, Howkins told us he believes EVs are ‘not key’ to the immediate success of Citroen.

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ALFA ROMEO

Better service is the key to more sales. We can improve! Tonale SUV Concept is ‘a new interpretation of what an Alfa Romeo should be’ – and why the brand wants as many customers as possible to test-drive its cars

eneva went well for Alfa Romeo – and the entire FCA Group in truth. Several good-looking concepts made their first appearances, while electrified – yes, that word again – versions of regular cars broke cover too. Alfa Romeo lifted the lid on its Tonale Concept – one that gives a preview of a compact SUV designed to sit underneath the Stelvio. We chatted to Roberta Zerbi, head of the Alfa Romeo brand for Europe, the Middle East and Africa, about the effect this latest model will have on Alfa’s fortunes. ‘We think it’s a new interpretation of what an Alfa Romeo should be,’ Zerbi told us. ‘The decision to present this concept as a plug-in hybrid is mainly because it allows us to have

by JACK EVANS @jackrober

the best of both worlds – a normal combustion engine coupled with an electric one. ‘We’re working night and day to turn the concept into a reality. We’re working towards a release date at the end of 2020.’ In the metal, the Tonale is one good-looking vehicle, with its sharp lines and narrow headlights bearing more than just a passing resemblance to the classic SZ. Although it’s pitched as a compact SUV, reflecting the staggering popularity of the segment in recent years, Zerbi believes that it ‘can appeal to

normal hatchback customers. We’re talking a very large part of the market.’ And although Alfa is pushing forward with new models, Zerbi isn’t content with progress just in the firm’s product line – she wants dealers and dealerships to improve too. ‘Something I used to tell my Italian dealers – and it’s something I now say to all my dealers in Europe – is that we need to make sure that as many people as possible test the cars. ‘I’m not sure that we’re where we should be in terms of allowing a potential customer to test the car. There is a totally higher conversion rate when a consumer tests a car versus when they just sit in it in a showroom. ‘When you sell a car with the sort of technical features that a Giulia has, you expect a lot in terms of servicing and information, and advice on how to actually use the car. We need to do a better job on that. ‘I think that the higher sales will not come as a result of offering better prices but through better service. We are aware that we can improve.’

Alfa Romeo Tonale Concept

MITSUBISHI

Online retailing is encouraging people to visit us in person MITSUBISHI was one of the first manufacturers to try online retailing in the UK when it launched its service in 2017 – but it hasn’t seen many customers flocking to the web to order new cars. Speaking to Car Dealer at the Geneva Motor Show, Rob Lindley, managing director of Mitsubishi Motors in the UK, acknowledged that that was the case – but added that it didn’t surprise him, saying: ‘It’s still in quite early stages as a retail approach.’

Instead, the online service has apparently made more customers head into dealerships to see cars close up, test-drive them and complete the process there, having specified a vehicle online and looked at pricing. This is something Lindley described as ‘important for the business’. He added: ‘As the world of retail increasingly needs an online presence, for Mitsubishi not to have that would be a mistake.’ Mitsubishi gave its Engelberg Tourer new-

Mitsubishi Engelberg Tourer

generation SUV its global premiere at Geneva. The car uses the manufacturer’s advanced electrification and all-wheel-control technologies to ‘raise SUV appeal to a new level’. Named after the famous ski resort in central Switzerland, the car is a twin-motor, four-wheeldrive, plug-in hybrid electric vehicle (PHEV) that is designed to deliver high levels of performance in the most challenging weather conditions and on all road surfaces. [CD] CarDealerMag.co.uk | 43

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

CANADA

FOUR people at a dealership in Alberta are facing charges under Canada’s Consumer Protection Act after an elderly woman claimed they adopted aggressive sales tactics to supply her with a new Jeep Compass. News of the charges was released by the Alberta Motor Vehicle Industry Council. The council investigated when 77-year-old Harriet Look claimed to have been supplied with the Jeep even though she had only wanted a used vehicle to replace her ageing SUV and couldn’t afford a new car.

MEXICO

A VOLKSWAGEN dealership has recruited two new members of staff – a pair of abandoned dogs. Volkswagen City Chetumal adopted the pups after seeing a social media post from a pet shelter. Polo and Virtus (named after VW models) were then given positions at the dealership, receiving their own staff identification badges. The two are now enjoying their newfound home as valued members of the security surveillance team.

SOUTH AFRICA

A PROPOSED new code of conduct would be ‘catastrophic’ for South Africa’s £2.6bn automotive industry and compromise people’s safety, according to the National Automotive Dealers’ Association. One of the most controversial aspects of the new code is that the requirement for parts to be approved by the country’s bureau of standards would be removed.

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INDIA

AUSTRALIA

ROLLS-ROYCE Motor Cars has appointed a new dealer in Brisbane. The showroom will be operated by the car dealership company LMM Holdings, part of Sime Darby Group, the Malaysian global trading conglomerate. Paul Harris, Asia Pacific regional director for Rolls-Royce, said: ‘I am very pleased to welcome Rolls-Royce Motor Cars Brisbane as our newest authorised partner in Australia. I would also like to thank Peter Warren Automotive for its guardianship of the brand in the Gold Coast over the last five years, and for our cordial and mutual agreement to divest in that location.’ It’s planned to open an interim showroom in Brisbane in Q2 this year.

A CUSTOMER checking out a new car at a Hyundai showroom in the Himachal Pradesh state accidentally crashed through a plate-glass window. The punter was happily checking out the car’s features while sitting behind the wheel when it suddenly lurched forward. After smashing through the window, she hit two cars parked outside. Luckily, no-one was hurt.

CarDealerMag.co.uk | 45

Finance. JBR CAPITAL

‘Equity release is where we have seen biggest growth’

he art of financing a supercar is a fine one. When dealing with the highest end of motoring and big-figure price tags, it can be tricky getting the right finance package for customers. But JBR Capital – which specialises in financing high-end supercars and classics – says it knows how to get people into the cars of their dreams. Martin Kennington, head of marketing for JBR Capital, said: ‘There are two types of people – those who are looking for lease/hire purchase, and those who want equity release. ‘There’s also somewhere in the middle where people don’t necessarily know! ‘We get fundamental questions as to how the finance works, and the other thing which people want to know is how long does the process actually take? Sometimes they’re in a hurry and want to secure a particular car they’ve found privately. ‘We assure people that the process is as efficient as possible.’ JBR Capital is certainly well versed

by JACK EVANS @jackrober in ensuring that people get the right deal. To date, the company has loaned over £400m, offering bespoke finance options to customers based on their personal circumstances and the vehicle in question. And speaking of vehicles, some jaw-dropping machines have been financed by JBR Capital. ‘We’ve done LaFerraris and McLaren P1s, for instance,’ said Kennington. ‘We don’t really do anything ordinary.’ But is there an aspect of finance that dealers could be focusing on? According to Kennington, it’s the process of equity release. ‘It’s the area where we’ve seen the

biggest growth and interest, and that’s down to the education of people who didn’t know it was a product before and now do. ‘Once people have done one finance deal we’ve seen more people taking out other policies. Around the UK it’s all going very well.’

STARTLINE

Changes over PCP VAT ‘will have a limited effect’ THE effect of changes relating to how VAT applies to PCPs will be ‘limited’ as long as sensible residual values are set by finance companies. That’s according to Startline Motor Finance, which said PCP was currently classed by Revenue & Customs (HMRC) as a supply of goods but a new briefing document says certain deals could be reclassified to become a supply of services, starting in June. This creates a number of advantages and disadvantages for

46 | CarDealerMag.co.uk

the motor trade and its customers. In the plus column, VAT will now only be due when customer payments are made, reducing the amount paid by those who hand back the car at the end of the contract. However, where the final instalment or balloon payment being set approximates the vehicle’s market value, interest on PCPs will no longer be VAT-exempt, while ex-PCP used cars reclassified as leases sold by dealers will attract VAT on their full selling price.

Startline chief executive Paul Burgess said: ‘The changes only apply where, to use HMRC’s wording, ‘‘the final optional payment is set at or above open market value’’. ‘What this means, according to our reading, is that the move is very much designed by the government to discourage the setting of overoptimistic future values for PCPs.’ New costs could be avoided simply by setting more conservative residual values, he added.

SURVEY

A number one for Blue! Firm is fastest grower

BLUE Motor Finance was the fastest-growing business in Europe for 2018, according to the Financial Times’ annual survey of leading companies across the continent. The ranking, calculated by Statista for the FT 1000 survey, saw the automotive finance firm move up from 21st to first place. Other fast-expanding enterprises included Deliveroo, Transferwise and Hellofresh. The survey ranks the 1,000 companies with the strongest revenue growth between 2014 and 2017. Based in Sevenoaks, Blue works with more than 3,700 dealers across the UK. In the past 12 months, it has financed over 50,000 car purchases. CEO Bob Jones, pictured, said: ‘UK car finance is a £106bn market that has been dominated by the banks for a long time. Blue’s aim is to transform the market, making car ownership simple, more transparent and flexible. ‘Blue has been able to double its lending yearon-year, and has now lent more than £1bn and grown from six to 200 people in four years. We don’t see that growth slowing down.’

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Time is money BEN GARSIDE

A monthly look at the world of automotive finance and marketing

Achievements show you’re on the right track and where to improve

t’s been a great start to 2019 at First Response Finance. We were recently handed a Gold Trusted Service Award by Feefo for the reviews we have received on its website. This award is a seal of excellence, recognising businesses for delivering exceptional experiences to customers. This was the second year running that we received this award and gives us an awareness that we are continuing in the right direction from a consumer’s point of view. Then we were placed in the Sunday Times 100 Best Companies to Work For list for the ninth year running. We entered the list back in 2011 in the small companies category. As we have grown over time, we have now moved into the mid-sized companies category. It’s always great to be a part of this list and we use our score each year as a benchmark, then focus on areas for continuous improvement. The best companies result gives us awareness of what needs to be improved and that we are continuing in the right direction from an employee’s point of view. While some of you may think ‘Who cares?’, we think it’s important for us to celebrate these achievements and not just to believe that they’re guaranteed, or normal. A lot of time and effort is invested every year into our workplace and our people development. We don’t do these continuous improvements solely to make sure our employees are all happy and enjoying their work, but also to make sure they’re equipped with the knowledge to provide a

great service to our dealer partners and to our consumers. In a highly competitive market, we’ve needed to keep improving our service and products to be sure that they are worthy of gaining these awards. Those of you that use us regularly will be aware that First Response has been on this journey for a while now. We’re a company that wants to continually evolve and improve and no area is to be missed. As such, we have recently extended our lending criteria, meaning that we are providing finance over a number of different lending tiers. While we haven’t really shouted about these tiers, it’s another improvement that has helped us to offer a great non-prime product and has allowed flexibility for our motor dealer partners, helping them to move more vehicles than was previously possible. We continue to assist motor dealers with far more than just getting their customers a great vehicle finance package. We have added value to them via joint advertising and marketing campaigns, bespoke point-of-sale merchandise and signs, and with regulatory guidance and digital marketing guides and much more. Next up for us to benchmark is our service to dealers, and as such we will be producing another Dealer Survey to measure our dealer service and products, assessing if they have provided any improvements or caused any issues. We hope to continue strongly through 2019. For those of you that haven’t used us in a while or not at all, there’s never been a better time to sign up as a motor dealer partner.

‘This award is a seal of excellence, recognising businesses for delivering exceptional experiences to customers.’

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 | 47

Dealfinder.

Finance. YOUR ESSENTIAL GUIDE TO AFFORDABLE CONVERTIBLES

Mini Convertible

Audi A3 Cabriolet

MINI facelifted its hatch and convertible last year with standardfit LED headlights, quirky Union Jack lights and more tech, and it’s particularly popular in the UK. The Cooper S here uses a 189bhp 2.0-litre petrol engine, which is good for a 0-60mph time of seven seconds flat. Mini asks for a customer deposit of £4,000, which the manufacturer then contributes £2,250 towards. This is followed by 35 instalments of £314.77 – meaning that at the end of the deal, the customer will have paid a total of £15,016.95. Should they then choose to buy their Mini, a final payment of £10,680.05 can be made, which makes the full amount £25,697 – £483 cheaper than the £26,180 cash price, thanks to the generous deposit contribution and low APR rate of 3.9 per cent.

AUDI’S A3 Cabriolet might be starting to show its age but the A3 is one of very few new convertibles this side of £35,000 that can fit adults comfortably in the rear seats, while you also get a stunning well-built interior as part of the package. We’ve chosen the relatively new 148bhp 1.5-litre ‘Evo’ petrol engine, which delivers a strong balance between efficiency and performance and suits the A3’s relaxed driving manner well. Audi is offering a generous £3,750 deposit contribution. The customer puts forward £4,250, followed by 36 monthly payments of £373.15. At the end of the deal, they will have spent £17,683.40. An optional final payment of £14,384.90 can be made, which along with the £10 purchase fee, brings the total payable to £32,078.30 – marginally cheaper than the £32,135 cash price, even with the 6.9 per cent APR rate.

INQUIRY

FCA set to act after accusing dealers over commission B

ritain’s financial watchdog has accused car dealers of overcharging some customers by more than £1,000 to boost commission. The Financial Conduct Authority (FCA) said it was considering changes to the way in which commission works after uncovering ‘serious concerns’ about the way lenders choose to reward car retailers and other credit brokers. It found the widespread use of commission models, which allow brokers discretion to set the customer interest rate and thus earn higher commission, could lead to ‘conflicts of interest’ that aren’t controlled adequately by lenders. The FCA is assessing its options for intervening, including strengthening existing rules, banning certain types of commission model or limiting

48 | CarDealerMag.co.uk

by REBECCA CHAPLIN @believebecca broker discretion. This can lead to customers paying significantly more for their motor finance, the FCA said, and is costing car buyers more than £1,000 a year, or £300m collectively. Jonathan Davidson, the regulator’s executive director of supervision, said: ‘We found that some motor dealers are overcharging unsuspecting customers over £1,000 in interest charges in order to obtain bigger commission payouts for themselves. ‘We estimate this could be costing consumers £300 million annually. This is unacceptable and we will act to address harm caused by this

business model. We also have concerns that firms may be failing to meet their existing obligations in relation to pre-contract disclosure and explanations, and affordability assessments. This is simply not good enough and we expect firms to review their operations to address our concerns.’ Acknowledging the outcome of the inquiry, Sue Robinson, director of the National Franchised Dealers Association (NFDA), said: ‘Franchised retailers are authorised by the FCA and abide by its rules and guidance. Franchised retailers take rigorous steps to be compliant with consumer credit rules and can only offer car finance under strict conditions.’ She added that the NFDA urged consumers to visit reputable franchised retailers and to shop around before agreeing to any finance deals when buying a vehicle. ‘Standards and integrity are vital to the future of our sector,’ she said. Lawgistics’ advice, p82

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Mazda MX-5 THE MX-5 is celebrating its 30th anniversary this year, and has been facelifted with more powerful engines, improved refinement and enhanced safety equipment. We’ve opted for the more powerful 181bhp 2.0-litre petrol engine, which saw a jump of 24bhp over the outgoing car’s unit, and in rangetopping GT Sport Nav+ trim. This comes well equipped with adaptive LED headlights, a reversing camera and a range of safety kit. Mazda is offering a £2,000 deposit contribution towards the MX-5, to go alongside the customer’s £4,250. This is followed by 36 monthly instalments of £317.21, bringing the customer’s total to £15,669.56. Should they choose to keep the roadster, they’ll have to fork out £9,966.25, bringing the overall amount to £25,635.81 – making it slightly cheaper than the £25,795 cash price thanks to the deposit contribution and 4.1 per cent APR rate.

BOOST

FLA

Hire purchase specialists look to accelerate growth after £110m cash injection

Consumer car finance market up by one per cent

SPECIALIST Motor Finance has had a funding injection of £110 million for hire purchase advances via its growing national network of finance brokers and dealers. It follows a year that saw the size of the Chester-based firm’s loan book rise to more than £100 million, and it now plans to accelerate its growth over the remainder of 2019. Managing director David Challinor, pictured, said its focus would remain on what it saw as an expanding sector of car buyers who, despite showing evidence of affordability, were being isolated from mainstream borrowing. ‘Unlike those who suffer from recurring repayment problems, customers in this segment are certainly not experiencing chronic financial difficulties. ‘On the contrary, our affordability checks often reveal comfortable earnings in secure employment, and other existing financial commitments which are far from onerous.’

LATEST figures from the Finance & Leasing Association show new business in the point-of-sale consumer car finance market rose one per cent by volume and six per cent by value in January against the same month in 2018. The point-of-sale (POS) consumer new car finance market reported new business volumes up by four per cent in January compared with the same month in 2018, while the value of new business increased by eight per cent over the same period. FLA members financed 91.2 per cent of private new car sales through the POS in the 12 months to January 2019 – unchanged on the same period to December 2018. The POS consumer used car finance market reported new business volumes in January at a similar level to the same month in 2018, while the value of new business rose by five per cent.

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THE AWARD WINNING ISUZU D-MAX. QUITE CLEARLY, IT JUST WORKS. Trade Van Driver 2018 ds awar

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A GOLDEN OPPORTUNITY The future is bright for the Pick-up Professionals. With ten awards and counting, the Isuzu D-Max is class leading. With such a strong product, it’s an exciting time for the Isuzu brand. As the Pick-up Professionals, Isuzu are proud of their unwavering focus; manufacturing hard-working vehicles, built to go the distance, sold by a network of dealers who are truly experts in their field. If you’re looking for a pick-up franchise, becoming a Pick-up Professional is a brilliant opportunity: • Plug-in franchise, simple to operate • Extensive training and marketing support • Healthy margins and opportunity for growth There no better time to become a Pick-up Professional, call Rebecca Lamsdale on 0121 730 8190 or email rlamsdale@isuzu.co.uk for more information.

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CarDealerMag.co.uk | 51

Forecourt. FIRST DRIVE

Interior

Rear-seat legroom is improved over the old Auris.

Toyota Corolla One of the world’s best-selling cars has made its way back to the UK in an all-new, 12th-generation model. Tom Wiltshire headed to Mallorca to try it.

Safety

The Corolla gets a suite of safety equipment as standard.

What is it? ‘No more boring cars’ was the bold proclamation of Toyota president Akio Toyoda last year, but even the brand’s executives will admit the Corolla nameplate doesn’t exactly stir the soul. A reputation for unparalleled reliability and dependability the world over is a fine thing to have, but for the new 12th-generation model, Toyota’s chasing a bit more dynamism and soul. The rebirth of the Corolla name is significant too, as it marks the first time since 2006 that Europe has received the same C-segment car as the rest of the world – hence the death of the ‘Auris’ nameplate.

Gearbox

Hybrid Corollas are only available with a CVT gearbox.

What’s new? In short, nearly everything. The new Corolla is based on the TNGA chassis platform, with the same underpinnings as the new (and impressive) Rav4 as well as its Camry and Lexus ES sister cars. A choice of three body styles – hatch, estate (or ‘Touring Sports’) and saloon – gives plenty of choice for buyers, but those hoping for a diesel will be disappointed. Where a high-powered diesel would otherwise sit in the line-up is a new ‘high-performance’ hybrid powertrain.

What’s under the bonnet? The bulk of the engine line-up is hybrid – although a 1.2-litre turbocharged petrol remains at the bottom of the range, paired with either a six-speed manual gearbox or a CVT automatic. Both hybrids are CVT-only, and the range kicks off with the same 1.8-litre powertrain as found in the current Prius. Its overall power output of 120bhp isn’t necessarily the issue, but accessing that power can be slightly painful – the CVT’s habit of sending revs spiralling at the merest twitch of the throttle soon becomes tiresome. 52 | CarDealerMag.co.uk

The 2.0-litre unit is far better, with its modest power increase making for a far more relaxed drive. Both hybrid powertrains are superb in town conditions, though – quiet, refined and with enough shunt off the line to keep up with traffic. They’re also very efficient, with NEDC CO2 figures as low as 76g/km.

As a first for the Corolla, Toyota’s also fitted optional adaptive dampers, which allow the driver to choose between Sport and Comfort modes. In reality, the former is unlikely to get used much – the powertrain simply doesn’t encourage spirited driving.

What’s it like to drive?

The Corolla uses a vast array of cuts and slashes to bring interest to its bodywork and the result looks pretty good – even if it doesn’t have the same classy simplicity as something like a Golf. Nevertheless, the Corolla does accomplish something that others fail at – namely, its three body styles of hatchback, saloon and estate all look well sorted and like they were designed from the outset as such, rather than as afterthoughts.

The old Auris was rather a dull steer, and although the Corolla is an improvement, it’s still not going to give the Ford Focus a run for its money. The main issue is with the over-light and remote steering, which doesn’t inspire much confidence when pushing the Corolla into bends. There are some good points, though. Body roll is well contained, and the Corolla hides its weight – even the bulky hybrid battery pack – when slinging it about in faster corners. It’s also fairly comfortable, likely thanks to its standard multilink rear suspension on all models.

How does it look?

What’s it like inside? Toyota’s listened to customer feedback on the interior. Previous Auris owners complained about

‘The Corolla uses a vast array of cuts and slashes to bring interest to its bodywork and the result looks pretty good.’

THE KNOWLEDGE Model: Toyota Corolla 1.8 Hybrid Icon Tech Price (as tested): £24,800 Engine: 1.8-litre four-cylinder petrol hybrid Power (bhp): 120 Torque (Nm): 163 Max speed (mph): 112 0-60mph: 10.7 seconds MPG: 65.9 Emissions (g/km): 76 TARGET BUYERS: Those who want plenty of practicality but low running costs too. THE RIVALS: Ford Focus, Honda Civic, Volkswagen Golf.

Suspension

All models get multi-link suspension.

KEY SELLING POINTS: 1. Long list of standard equipment. 2. Low emissions. 3. Strong build quality. DEAL CLINCHER: The new Corolla may appear expensive but plenty of standard equipment and good build quality make it good value.

rear legroom, so it’s been extended to equal anything in the class bar the Skoda Octavia. Buyers weren’t fans of the ‘joystick’-style gear selector either, so it’s been replaced with a more conventional – albeit less space-efficient – traditional automatic selector. Elsewhere, the car takes its fundamentals from the new Rav4, including the partially digital instrument panel and the eight-inch centre touchscreen. The overall ambience in most models is a little dark and forbidding owing to the amount of black plastic, but everything feels built to last.

What’s the spec like? The Corolla starts at above £21,000 – slightly expensive by the class standards on paper but not at all when you look at the equipment bundled in. Chief among this is the inclusion of Toyota’s Safety Sense 2 pack on all models, which brings pre-collision alert, adaptive cruise

control, lane keep assist, auto high beam and road sign assist. You’d need to pay extra for most of these on all but top-spec models of the Focus or Golf. LED headlights are also standard, as are dual-zone climate control, a reversing camera and that eight-inch infotainment system. For Icon Tech models, navigation and all-round parking sensors are added. Next up is Design, with 17-inch alloy wheels, automatic wipers and mirrors, privacy glass and LED foglights, while range-topping Excel brings

18-inch alloys, matrix LED headlights, keyless entry and partial leather upholstery. It’s an impressive equipment list and one that definitely offsets the car’s slightly higher price. There’s still no Apple CarPlay or Android Auto, though.

What do the press think? Autocar said: ‘The Corolla is built here and it also feels like it’s been developed for our roads.’ Business Motoring said: ‘We’re really pleased to see the Corolla name back. The Auris just did dull. The new Toyota Corolla is anything but that.’

What do we think? There are few surprises with the new Corolla, but is that a bad thing? Toyota’s taken what the old car did very well – ease of driving, low cost of ownership and a reputation for reliability – and added a few key improvements that should attract plenty of new buyers. CarDealerMag.co.uk | 53

Forecourt.

FIRST DRIVE

Range Rover Evoque

THE KNOWLEDGE

Tom Wiltshire went to Greece to see if Land Rover’s revamped SUV has got what it takes to stay ahead in the brawl that’s emerged in this teeming sector. What is it? First launched in 2011 and more than 800,000 sales later, this is an all-new model, but it’s entering a much more crowded battlefield, with competitors such as the Audi Q2 and Volvo XC40 very popular.

What’s new? Short of the door hinges, everything you see and touch is new. There’s a range of updated engines under the bonnet and an interior that will be familiar to anybody who’s sat in the latest generation of Range Rover or Range Rover Sport models.

What’s under the bonnet? The new Premium Transverse Architecture that underpins the Evoque is set up for petrol, diesel, plug-in hybrid or full EV powertrains, and from launch there are three petrols and three diesels. The basic 148bhp diesel makes do with front-wheel drive and a manual gearbox, but the other five – 178bhp and 237bhp diesels as well as 197bhp, 247bhp and 296bhp petrols – all have a new nine-speed auto, four-wheel drive and a mild-hybrid system to boost performance and economy. All are four-cylinder units.

What’s it like to drive? Slightly over-light steering and a large, thin-rimmed steering wheel 54 | CarDealerMag.co.uk

give the impression that the Evoque won’t corner. But move past the initial uncertainty and you’ll find a very sweet-handling car. Grip levels are excellent, and even the basic non-adaptive suspension remains impressively flat through the corners. Land Rover’s also done an impressive job of isolating the judder you feel from large rims on poor road surfaces. Ride comfort’s excellent across the board, especially at a cruise.

How does it look?

buttons. It does take a little getting used to – and we found the gearstick gets in the way of the lower screen. Space is an improvement on the previous model, although legroom is still limited for passengers in the rear. The boot’s improved by 10 litres, and the seats fold to give a totally flat load bay. We’re also big fans of Land Rover’s innovative – if pricey – premium fabric upholsteries. They’re more welcoming and comfortable than leather without feeling cheap, and are also vegan.

The new car looks similar to the old Evoque, but details have been simplified and kinks and creases ironed out. Details have been carried over from the previous model – the rising waistline, ‘floating’ roof and wheel-at-each-corner stance – but the removal of the plastic wheel-arch extensions and addition of hidden door handles gives a very slick, concept-car look. Land Rover’s signature LED lights sit up front, while the full-width element across the rear combined with the letterbox rear window gives it a pleasingly squat stance.

What’s the spec like?

What’s it like inside?

What do the press think?

The dual-screen set-up of the dashboard has been lifted from the Velar, leaving few traditional

Auto Express said: ‘There’s enough refinement, comfort and luxury to make this car feel like a proper baby

S, SE and HSE trim levels are available, with sporty R-Dynamic versions of each. All models have LED headlights, alloy wheels, climate control, a suite of cameras, cruise control and all of Land Rover’s off-road goodies, but entry-level cars do feel rather spartan with their analogue gauges, manual boot and barely adjustable seats. The Evoque’s options list is extensive and includes some very clever camera systems – one that replaces the rear-view mirror and another that makes the bonnet ‘invisible’ for tricky manoeuvres.

Model: Range Rover Evoque P 250 R Dynamic Price (as tested): £41,800 Engine: 2.0-litre four-cylinder petrol Power (bhp): 247 Torque (Nm): 365 Max speed: 143mph 0-60mph: 7.0 seconds MPG: 35.8 Emissions (g/km): 180 TARGET BUYERS: Repeat customers and those who want the ultimate stylish small SUV. THE RIVALS: Volvo XC40, Porsche Macan, Audi Q2. KEY SELLING POINTS: 1. Style. 2. Off-road capability. 3. Clever tech. DEAL CLINCHER: More capable on the rough stuff than it has any right to be. Range Rover.’ Car Magazine said: ‘The 2019 Evoque has answered most of the old one’s criticisms which means it’s job done.’

What do we think? The new Evoque feels like the correct way to go – a useful upgrade without risking scaring existing owners away from the showrooms. It’s a handsome SUV with a good interior, superb cruising manners and more off-roading capability than the majority of drivers will need.

Rescue

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CarDealerMag.co.uk | 55

Forecourt.

FIRST DRIVE

McLaren 720S Spider James Baggott pilots the McLaren 720S Spider – a drop-top version of the firm’s accomplished supercar. What’s it like? Let him explain. What is it? As great British automotive success stories go, they don’t get much better than McLaren’s. The manufacturer’s meteoric rise has been largely thanks to its core super series range, which the 720S Spider joins as the latest member. Launched in 2010 as the MP4-12C – taking the Ferrari 458 head-on – the core of McLaren’s supercar range has evolved into the incredibly accomplished car you see here.

What’s new? With a clever folding roof, designed to collapse in one gracious movement in just 11 seconds, the 720S Spider lets owners drop the lid at speeds of up to 31mph. When the roof’s up, it has another trick up its sleeve: an optional electrochromic glass panel can be specified that rapidly changes between tinted and transparent at the touch of a button. To further aid the design, McLaren has created the flying buttresses – those aerodynamic wings that extend out behind the rollover bars – from glass, which not only look stunning but aid visibility.

What’s under the bonnet? McLaren’s tried-and-tested 4.0-litre twin turbo-charged V8 produces 710bhp and 770Nm of torque. Those heady figures are enough to propel it to 60mph in 2.7 seconds and on to a 56 | CarDealerMag.co.uk

top speed of 212mph with the roof shut and 202mph with it down. The addition of the roof – despite the extra 49kg on the overall kerb weight – has had little effect on performance. The Spider will still hit 124mph in just 7.9 seconds – a 0.1 second blink of an eye less than the Coupe. A standing quarter-mile is completed in 10.4 seconds – again, just 0.1 seconds slower than its hardtop equivalent.

What’s it like to drive? The removal of the roof hasn’t compromised handling. It rides superbly, soaking up even the nastiest of bumps. On the road, the 720S is an accomplished supercar. The sevenspeed automatic gearbox shifts cogs in milliseconds and is an absolute joy to use in manual mode. The carbon paddles are mounted on a rocker, a pull on the right lever depressing the left, and vice versa. F1 technology has been used to cut the ignition spark to improve shift changes too, which is especially noticeable on down shifts. Several drive modes can be selected, depending on your mood.

How does it look? With those dramatic glass flying buttresses, stunning frameless dihedral doors and active rear spoiler, the 720S Spider looks every

bit the supercar. McLaren engineers have focused on form going hand in hand with function. Sculpted around the air intakes that cool the engine and brakes, it’s purposeful and visually arresting.

What’s it like inside? It feels like there’s a little less room inside the cabin but it’s still a plush place to spend time. There’s a choice of four leather interiors, with a leather steering wheel, eight-inch infotainment system and a cool folding digital driver display that tucks away to reveal just a rev counter when ‘track’ mode is selected.

What’s the spec like? Those jaw-dropping doors, LED headlights, twin stainless-steel exhausts and five-spoke alloy wheels all come as standard. Other highlights included are dynamic stability control, dual-zone air con and keyless entry. There’s plenty to choose from the options list, though, like that electrochromic roof at a whopping £7,500, special Aztec Gold paint (£4,330), carbon seat backs (£3,280), and a Bowers & Wilkins audio system (£3,640).

What do the press think? Auto Express said: ‘The sheer performance levels on offer have to be experienced to be believed.’

THE KNOWLEDGE Model: McLaren 720S Spider Price (as tested): £246,990 Engine: 4.0-litre twin turbo V8 Power (bhp): 710 Torque (Nm): 770 Max speed (mph): 212 0-60mph: 2.7 seconds MPG: 23.2 Emissions: 276g/km TARGET BUYERS: Ferrari and Lamborghini fans who want a car that’ll help them stand out from the crowd. THE RIVALS: Ferrari 488 Spider, Lamborghini Aventador Roadster. KEY SELLING POINTS: 1. Lopping roof off has had little or no effect on performance. 2. It’s a break from the established supercar crowd. 3. Designed and built in Britain. DEAL CLINCHER: Stunning folding roof lowers in just 11 seconds. Autocar said the 720S ‘has shown itself to be a car of incredible, almost unprecedented, speed and purpose.’

What do we think? There’s little doubt how important the super series range has been to McLaren, and its current crown bearer is an incredible machine. The 720S is bone-crushingly quick and simply more than you’ll ever need on the road. McLaren may have faced complaints in the past that its cars lacked ‘soul’ but that’s simply not true. The 720S is a supercar that deserves a place among the greats.

FIRST DRIVE

Mazda3

THE KNOWLEDGE

Ryan Hirons heads to Lisbon to try the latest version of Mazda’s Ford Focusrivalling hatchback. Can it make inroads into the ultra-competitive C-segment? What is it? Competition is so hot, Mazda has struggled to get a decent foothold in the C-segment. Despite the 3 being a pleasant prospect in its previous three generations, it’s not exactly a common sight on our roads. Now though, the fourth-generation car is here – and the Japanese firm is hoping it will change that.

What’s new? What we have here is a totally new car. It’s the first to sit on Mazda’s latest Skyactiv-Vehicle underpinnings, which are said to improve comfort, handling and refinement. There’s also a fresh take on its ‘Kodo’ corporate design. Key to the Mazda3’s potential success is the all-new Skyactiv-X technology, which the manufacturer claims can deliver the efficiency and torque of a diesel with cleaner petrol engines. It’s not quite ready for market yet though, so we’ll have to wait until later in the year to give our verdict on that.

What’s under the bonnet? While we wait to see if Skyactiv-X lives up to the hype, two Skyactiv engines are available from launch for the 3 hatchback — one naturally aspirated 2.0-litre petrol and one 1.8-litre turbodiesel. The green-pump option also comes as part of a mildhybrid powertrain.

It’s the former of those we had a go in. Developing 120bhp and 213Nm of torque, power is sent to the front wheels via a six-speed manual gearbox (an automatic is also available). As a result, 0-60mph comes in a not-so-brisk 10.2 seconds, with a 122mph top speed possible. Mazda claims it can also achieve 44.8mpg on the combined cycle – although we managed 47.8mpg on our mixed test route – along with 142g/km of CO2 emissions. As the figures may suggest, this isn’t a powerhouse – in fact, it’s fair to call it slow. However, it does offer a smooth drive that turbocharged rivals struggle to deliver – just be prepared to work it hard in more demanding driving scenarios.

What’s it like to drive? The Mazda3 has always had an impressive behind-the-wheel experience, ranking among the class best as a driving machine. That’s no different here, with welljudged steering combining with a composed chassis to provide some serious fun – it’s almost crying out for a more potent engine.

How does it look? In a nutshell: jaw-dropping. Mazda has the good-looking car formula nailed down with its ‘Kodo’ design, and the 3 is a continuation of that. Its concept-car-like front makes

any other car in this price bracket on the road look ancient in comparison.

What’s it like inside? The Mazda3 makes a convincing effort at seeming more upmarket inside than it actually is. Highquality materials are present throughout – particularly on highspec GT Sport models onwards, which benefit from a full black leather interior – and the threepiece dash is particularly effective at creating an elegant look.

What’s the spec like? Mazda likes to be generous with its equipment offerings, and the 3 is no exception. As standard across the range, the hatch boasts a head-up display, adaptive cruise control with traffic sign recognition, LED headlights and a newly designed infotainment system displayed on an 8.8-inch display. The infotainment system in particular is a highlight, building on Mazda’s already intuitive software and giving it a more modern feel. Extras on our GT Sport Tech test car included keyless entry, heated front seats, rear privacy glass, 18inch alloy wheels, a heated steering wheel, 360-degree camera system and a Bose audio system. With the range starting from £20,595 and topping out at £27,735, the Mazda3 is a great value-for-money prospect.

Model: Mazda3 GT Sport Tech Price (as tested): £25,495 Engine: 2.0-litre N/A petrol mild-hybrid Power (bhp): 120 Torque (Nm): 213 Max speed (mph): 122 0-60mph: 10.2 seconds MPG: 44.8 Emissions: 142g/km TARGET BUYERS: Anyone after a hatchback that’s fun to drive and good value. THE RIVALS: Ford Focus, VW Golf, Vauxhall Astra. KEY SELLING POINTS: 1. Bags of kit as standard. 2. Impressive driving experience. 3. Looks incredible. DEAL CLINCHER: No longer a C-segment alternative – it’s one of the go-to choices.

What do the press think? Top Gear described the new 3 as ‘an easy, good-natured, undemanding car to live with’. Sunday Times Driving said: ‘If it were at school, the 2019 Mazda3 would probably collect the end-of-year award for the most improved pupil.’

What do we think? Buyers in the C-segment have unfairly overlooked the Mazda3 in the past, but the latest version of the car may be the one to turn their heads at last. CarDealerMag.co.uk | 57

Approved Garage

RAC Approved Garage

The UK’s fastest growing garage network We were delighted to be the headline sponsor at this years Aftermarket Excellence Awards

Benefits of joining the network Stand out from the competition with RAC branding and signage

“The RAC prides itself on working with only the best garages in the industry and it was great to recognise and celebrate with some of the countries top garages at the awards evening. The RAC has recently partnered with Euro Car Parts (ECP) to create the new RAC Approved Garage scheme, powered by Autofirst Network. Uniting the power of our highly recognised brand and ECP’s aftermarket expertise will give car owners the best possible garage experience and help independent garages stand out in a crowded market place.

2019 is a crucial year for our network as we look to expand and improve the offering for our garages. We’re looking for new garages to join the network who’ll see great benefits from working with the RAC. Congratulations to all of the award winners this year.” - Alastair Crossley, Head of Motoring Services, RAC

Aftermarket expertise from Euro Car Parts A dedicated account manager to support your business Sending breakdown customers your way Marketing and promotion to over 8.2 million RAC customers RAC products and services to help you win new customers

Find out how to join the network

Call 0800 085 4121

or register your interest at rac.co.uk/jointhenetwork 58 | CarDealerMag.co.uk

0219.CRS-147

Awards.

A NIGHT TO REMEMBER

Honouring unsung and hard-working aftermarket heroes W hen we launched the Aftermarket Excellence Awards in Car Dealer Magazine last year, nothing could have prepared us for the response we were about to receive – we were inundated with nominations and entries from right across the UK! The awards were launched with the specific aim of honouring and recognising those hardworking teams and individuals who toil away in the automotive aftermarket but hardly ever get any recognition for their efforts or achievements. You’ll see over the following five pages that during our awards night, we recognised the top performers in a variety of categories. The best specialist and independent garages won praise and there were individual prizes for talented technicians and marvellous managers. We were delighted to host the ceremony in association with RAC Approved Garages powered by Autofirst Network. As you may have seen on the Car Dealer website recently, that partnership has just created the biggest independent garage network in the country and is supported by Euro Car Parts. We were extremely grateful for their support – and also for the backing of our friends at Autologic who were also a key partner. Without any doubt, and as the SMMT has pointed out in the past, the automotive aftermarket is a vital part of our economy. By keeping the country moving, it delivers both direct and indirect financial benefits. In a recent independent study, it was discovered that the UK automotive aftermarket

by DAVE BROWN @CarDealerDave

is ranked fourth in Europe and ninth in the world in terms of size, turning over an incredible £21.1bn and generating £12.5bn for the UK economy. The sector supports 347,000 jobs and services a whopping 30 million vehicles a year. It’s growing, too. In line with the UK’s increasing car parc, the aftermarket’s value is set to rise to £28bn by 2022. At Car Dealer magazine, we hugely admire the efforts of everyone working in the aftermarket – and there was no doubt that our inaugural awards ceremony, held at the Spinnaker Tower, Portsmouth, right, went down a storm. Adam O’Neill, proposition manager of affiliate networks at the RAC, said: ‘The Aftermarket Excellence Awards was a great event. ‘The awards rewarded some of the best talent in an industry that doesn’t always get the recognition it deserves. The RAC prides itself on only working with the best garages, so the evening was a great chance for us to recognise these garages for their achievements.’ Rebecca Chaplin, editor of Car Dealer magazine, who hosted the ceremony with the magazine’s founder, James Baggott, said: ‘The awards night was a tremendous success and it was great to hand out trophies to our deserving winners. Well done, everyone!’ Turn the page to find out who won what at the inaugural Aftermarket Excellence Awards... CarDealerMag.co.uk | 59

Awards. Manufacturer Warranty Scheme of the Year

Technician of the Year

Winner: Kia Motors (UK) Ltd

Winner: Charlie Hudson – Shortfield Garage

Sponsored by

Highly commended: Dean Butcher – Premier Autocentres Brett Duke of Fine Cars Kia, right, accepts the trophy from Car Dealer founder James Baggott

Highly commended: Stephen Senogles – S&J Garage Charlie Hudson of Shortfield Garage, left, accepts the trophy from Lee Forty, head of garage concepts for Euro Car Parts

THE first award to be presented was for the Manufacturer Warranty Scheme of the Year – and it was a very hard-fought category. Warranty work is, after all, the bread and butter of many dealerships – and crucial to the bottom line of countless workshops. There are some fantastic schemes out there offering buyers peace of mind and support when they really need it. In preparing to hand over the trophy, awards host and Car Dealer magazine founder James Baggott noted that our winning scheme has long been held in high regard for the comprehensive cover it provides, speed of processing and availability of parts. It’s an industry-leading product, offering buyers peace of mind for an incredible seven years. The first trophy of the night went to the warranty provided by Kia!

WE were inundated with entries for this key category. The judges were looking for someone who works hard, is a real team player, is fast and efficient, and great with customers too. Guests were first asked to put their hands together for our two highly commended winners: Dean Butcher of Premier Autocentres and Stephen Senogles of S&J Garage. But the Technician of the Year trophy went to a delighted Charlie Hudson of Shortfield Garage, Surrey. He told us he was surprised to win and said the garage relied on a team effort for its success. ‘We aim to bring all our technicians up to a high standard,’ he added, ‘and I’d like to see independent technicians recognised more for what we’re doing in the trade. With the technology used in cars now, our jobs are becoming more involved and more in-depth than they were before.’

Apprentice of the Year

Aftersales Team of the Year

Sponsored by

Winner: Connor Foylan Mead – Bryan Swales Auto Repairs

Winner: Uckfield Motor Services Highly commended: Shaikly Motor Company Neil LePine, head of sales and marketing at Autologic, accepts the trophy on behalf of Connor Foylan Mead from Rebecca Chaplin, editor of Car Dealer

WHEN you’re studying for an apprenticeship and working full-time, the pressure really is on. In searching for someone worthy of the Apprentice of the Year title, the judges were looking for a person who is passionate about the aftermarket and goes above and beyond the call of duty. They were delighted to see that our industry is in safe hands for the future thanks to the large number of hard-working and talented young mechanics coming up through the ranks. Our Apprentice of the Year was Connor Foylan Mead of Bryan Swales Auto Repairs, Castle Douglas. Unfortunately Connor couldn’t be with us on the night of the awards but we will make sure he gets his trophy soon! 60 | CarDealerMag.co.uk

Sponsored by

Highly commended: Shortfield Garage Edward and Harry Cockill of Uckfield Motor Services collect their trophy from Autologic’s Neil LePine, right

WE’VE all heard the slogans – teamwork makes the dream work, there’s no ‘i’ in team – and although they’re a bit cheesy, they’re also true! If you get a group of people who gel together and are willing to go the extra mile for your business, it can make all the difference. Guests were first of all asked to put their hands together for our two highly commended teams – and they were from Shaikly Motor Company and Shortfield Garage. Our winning team, though, came from a business that has been a highly regarded repair, servicing and MOT centre for more than 25 years: Uckfield Motor Services. Edward Cockill, a partner in the business, said: ‘It’s been a fantastic evening. We just came to enjoy the scenery at the Spinnaker Tower – we weren’t expecting to win an award!’

Workshop Manager of the Year

Workshop Website of the Year

Winner: Kevin Appleyard – BNTec German Autocare

Winner: ACC UK

Highly commended: Bryan Swales – Bryan Swales Auto Repairs

Highly commended: MOT City

Sponsored by

Highly commended: BTE Automotive

Highly commended: James Trott – Performance 3000

Lee Forty, head of garage concepts for Euro Car Parts, presents ACC UK’s award to Francesca Pipistrelli

Kevin Appleyard, right, collects his trophy from Car Dealer founder James Baggott

A WORKSHOP manager certainly needs to keep a lot of plates spinning – and our finalists all did extremely well in what was a competitive category. Our two highly commended winners were Bryan Swales from Bryan Swales Auto Repairs and James Trott of Performance 3000. But our Workshop Manager of the Year was Kevin Appleyard of BNTec German Autocare. He’s one of three owners of the business in Hull that provides BMW and Mini owners with great service and excellent value – as well as those who drive vehicles from other brands. He said: ‘It’s nice to get an award that comes from within the industry – it’s a brilliant feeling. Something like this reinforces the good things people hear about us.’

A WORKSHOP’S website is the first impression most customers get of your business, so having one that’s clear, easy to navigate and full of useful information is vital. There are some great websites out there, all providing excellent levels of information for customers and explaining things clearly and simply. Guests were first of all asked to put their hands together for our two highly commended winners: BTE Automotive of Hampshire and MOT City which has operations in Reading and Wokingham. Our winner, though, ticks all the boxes with a simple but effective design. It was a big well done to the company who won the Aftermarket Excellence Website of the Year Award – ACC UK !

MOT Centre of the Year

Aftersales Director of the Year

Sponsored by

Highly commended: Colville Road MOT Centre

Winner: Anthony Heard – Braintree Motor Works

Highly commended: Premier Autocentres

Highly commended: Simon Cook – ACC UK

Winner: West Malling Garage

Lee Forty collects the award on behalf of West Malling Garage from Car Dealer founder James Baggott MOT tests are, of course, key to the success of many workshops. Our finalists were businesses who keep customers happy while carrying out the important tests promptly and efficiently every time. Our two highly commended winners for 2019 were Colville Road MOT Centre, Lowestoft, and Premier Autocentres, Kent. Well done to them! Our winner is a trusted name for used car sales, vehicle servicing, repairs and MOT. Coming under new ownership around eight years ago, it has been transformed from a small village dealership into a multi-millionpound sales, service and MOT operation with two locations and over 20 staff. Our MOT Centre of the Year for 2019 was... West Malling Garage! We’ll get their award to them as they couldn’t be there on the night.

Sponsored by

Highly commended: Nick Errington – West Malling Garage Anthony Heard receives his trophy from Autologic’s Neil LePine

A GOOD aftersales director is worth his or her weight in gold. Duties might include making sure financial targets are hit, effectively managing the service department and ensuring all customers are happy. Our two highly commended winners were Simon Cook of ACC UK and Nick Errington of West Malling Garage. But our winner has almost 20 years’ experience of the motor trade and has worked across several different areas of the industry. Since buying the company he now owns and operates, he has turned it from a small garage into a large specialist that looks after company fleets, insurance repairs and day-today customers. Our Aftersales Director of the Year was Anthony Heard, the owner of Braintree Motor Works. Congratulations! CarDealerMag.co.uk | 61

Awards. Franchised Workshop of the Year

Independent Workshop of the Year

Winner: Fine Cars Kia Highly commended: Bristol Mitsubishi

Winner: Devonshire Motors Accident Repair Centre

Highly commended: Snows Volvo Winchester

Highly commended: Uckfield Motor Services Brett Duke of Fine Cars Kia, right, receives the trophy from Car Dealer founder James Baggott

FRANCHISED workshops are an important source of revenue and profit for countless car dealerships. Hundreds of modern and well-equipped workshops across the UK deliver excellent levels of service every day. Our two highly commended franchised workshops were Bristol Mitsubishi and Snows Volvo Winchester so well done to both! Our winner – Fine Cars Kia – operates a workshop in the south of England that’s well regarded by hundreds of loyal customers. Awards compere James Baggott pointed out that it’s a small business that’s really punching above its weight so congratulations were definitely in order! Brett Duke, Fine Cars’ general manager/director, said: ‘I’m bowled over by this award to be honest! We pride ourselves on looking after customers – it underpins everything we do. We’ve toiled for many years and not really had any recognition so it’s really nice.’

Specialist Garage of the Year

Sponsored by

Highly commended: Shire Hill Garage Lee Forty, head of garage concepts for Euro Car Parts, presents the award to Helen Harding of Devonshire Motors Accident Repair Centre WE are truly blessed in the UK with an extensive network of independent workshops able to look after all sorts of vehicles while delivering expert advice and superb levels of customer care. Many of them have been around for decades, with hordes of loyal customers visiting them repeatedly over the years and telling friends and family how well they have been looked after. As you can imagine, this was a trophy everyone wanted to win! So we were inundated with entries. Our two highly commended workshops were Shire Hill Garage and Uckfield Motor Services. Our winner, though, was Devonshire Motors Accident Repair Centre. Many congratulations!

Aftersales Customer Care Award

Sponsored by

Winner: BNTec German Autocare

Winner: Ben Dewar – Redgate Lodge

Highly commended: S & J Garage

Highly commended: Suzanne Davey – Ashburton Motor Works

Highly commended: Trophy Cars – South Witham

Highly commended: Samuel Evans – Beck Evans Kevin Appleyard, left, and Paul Nicholson, right, pick up BNTec’s trophy from Neil LePine of Autologic

IT CAN be a tough job running a specialist garage, but our finalists in this category manage to make it look easy while maintaining the highest of standards. A specialist might focus on high-end vehicles or a specific brand, but they all face the same day-to-day challenges. Our two highly commended winners were S&J Garage and Trophy Cars so a big well done to them. Our winner, however, is a business that had already picked up an award during the course of our awards ceremony. Guests were asked to put their hands together once again for BNTec, Hull, our Specialist Garage of the Year! Joint owner Paul Nicholson said: ‘An award of this kind reinforces that what we’re doing is right, bearing in mind the judges will have read our online reviews. Regarding BMW and Mini, there’s nothing a main dealer can do that we can’t do – and much more cost effectively for the customer.’ 62 | CarDealerMag.co.uk

Scott Sibley, left, picks up Ben Dewar’s trophy from Lee Forty, head of garage concepts for Euro Car Parts

LOOKING after cars is one thing – looking after customers is quite another. Many motorists forge relationships with particular workshops that last a lifetime; others might prefer to visit various fast-fit centres. Whether you’re seeing a customer for the first time or the twenty-first time, it’s crucial to always be polite, efficient and courteous. All three of our winners in this category fulfil those criteria and really did deserve their awards. Our two highly commended winners were Suzanne Davey from Ashburton Motor Works and Samuel Evans from Beck Evans. But our winner was Ben Dewar of Redgate Lodge, Newcastle upon Tyne. As he couldn’t be with us on the night of the awards, his trophy was picked up by his boss, Scott Sibley. Good work, Ben!

Equipment Supplier of the Year

Product Innovation of the Year

Winner: Snap-on

Winner: OEC

Highly commended: JD Garage Equipment Highly commended: Straightset

Dawn Boxall, right, from OEC, collects the company’s trophy from the editor of Car Dealer, Rebecca Chaplin

Snap-on triumphed over all the other garage equipment suppliers in this category to take top honours

HAVING quality equipment in garages is vital. We’d be completely lost with tools that fail, machinery that doesn’t function as it should, or dayto-day essentials that don’t come up to scratch. Our top three in this category certainly know their onions when it comes to supplying topquality, reliable garage gear... and they all impressed our judges. Our two highly commended award winners were JD Garage Equipment and Straightset. Both those companies were credited with offering top-quality products at sensible prices, but they couldn’t quite beat our winner. This company is held in the highest regard in the industry, with fantastic products and excellent customer service. Our Equipment Supplier of the Year was Snap-on! Very well done.

IT’S always great to come across a new product that makes life easier, or helps us make more money. It must be amazing to have that lightbulb moment in the knowledge that you’ve had a great idea! Our winner in the Product Innovation of the Year category was OEC, which has devised a simple, click-to-book workshop booking facility that looks just like your own website. It’s going down a storm with garages and dealerships – not to mention manufacturers. Carmakers such as Vauxhall, Seat and Nissan are on board and it has enjoyed 35 per cent year-on-year growth in booking volume. Reacting to news of the award, Mark Mallison, head of application services at OEC, said: ‘We are immensely proud. We have worked long and hard on this product with many clients. We get good feedback on it and it’s nice to see it get some recognition at an event like this.’

Outstanding Achievement Award

Lifetime Achievement Award

Sponsored by

Winner: Meridien Modena

Sponsored by

Winner: Stuart Evans – Beck Evans Chris Ambrose and Glenn Butt from Meridien Modena collect their trophy from Neil LePine

THE Outstanding Achievement of the Year Award went to Meridien Modena, based in Lyndhurst in the New Forest. It’s a dealership that’s won a number of accolades from one of the manufacturers it represents – even a Global Dealer of the Year gong! Its success at the Aftermarket Excellence Awards was more than justified as the business has recently invested £3.5 million in a new service centre. The two-floor facility enables the team to not only carry out routine servicing and maintenance tasks but also restorations and pioneering technical refurbishments. Glenn Butt, Meridien Modena director, said: ‘We’re feeling really, really blessed; the happy story continues! It’s an outstanding achievement, and a brilliant addition to what we got in November – a Formula One car in the showroom, as part of being named Ferrari Dealer of The Year.’

Samuel Evans, left, collects his father’s award from Alastair Crossley, head of motoring services at the RAC OUR Lifetime Achievement Award winner, Stuart Evans, started his company, Beck Evans, in 1970 and has expanded it from a one-man band to one that now employs 25 people and has a turnover of £30m a year. During his long and distinguished career, he’s had a no-nonsense approach to business, which has won him a huge amount of respect in the trade. He is exceptionally well known – by everyone from small independents right up to the largest dealers in the country. Beck Evans has also achieved success at the Car Dealer Magazine Used Car Awards, which is a massive credit to him and the processes he implemented nearly 50 years ago. Stuart was sadly unable to attend the Aftermarket Excellence Awards owing to ill health so his son Samuel collected his award. Congratulations, Stuart, from everyone at Car Dealer! CarDealerMag.co.uk | 63

Awards. Most Reliable Far Eastern Car

Alastair Crossley, head of motoring services at the RAC, accepted the final four awards on behalf of the winning manufacturers

Sponsored by

Winner: Honda Jazz THE final four awards of the evening had been hotly contested by all the manufacturers out there – and involved our judges in a lot of number-crunching and data analysis. Cars can be well designed, powerful and stylish – but as we pointed out during the awards ceremony, none of that matters if reliability is in any way in doubt. Our judges aggregated several online manufacturer reliability surveys and used their own assessment criteria to work out which models are the most dependable and rarely, if ever, let their owners down. Our first award was destined to go to a

model from a Far Eastern manufacturer, so that put offerings from carmakers such as Nissan, Mitsubishi, Kia, Hyundai and Toyota in the frame. But our winner was a car that was launched way back in 2001. More than seven million examples have been sold worldwide in the years since then. It might not be a car to set pulses racing but its reliability cannot be questioned. Guests were asked to put their hands together for the Honda Jazz!

Most Reliable European Car

Sponsored by

Winner: Skoda Octavia FOR the second award of the four, we brought things a little closer to home – and the numbers were crunched to help us work out which is the most reliable car manufactured by a European company. This opened the way for Fiat, Volkswagen, Seat, Peugeot, BMW and many other manufacturers to maybe go home with a feather in their cap and a coveted trophy in their hand. Our most reliable

Most Reliable Manufacturer

Sponsored by

Winner: Lexus FOR our final award of the evening, we took a slightly broader brush approach in the reliability stakes… We were looking for the manufacturer that makes the models best known for being dependable and fault-free. As we all know, carmakers have made great strides in terms of reliability in recent years. And our winner in this all-important category deserves praise, too, for producing cars that are stylish, luxurious and take advantage of cuttingedge hybrid technology. The Most Reliable Manufacturer of 2019 was revealed to be Lexus! As with the awards for Honda and Skoda, Alastair Crossley, head of 64 | CarDealerMag.co.uk

motoring services at the RAC, kindly picked up the trophy on Lexus’s behalf. The presentation of that gong concluded proceedings at the top of the Spinnaker Tower – and the inaugural Aftermarket Excellence Awards had been an enormous success! [CD]

European car came from a manufacturer that used to be the butt of jokes but now, as a key member of the Volkswagen Group, has a peerless and well-deserved reputation for quality and dependability. The winner was revealed to be the Skoda Octavia! Many congratulations to everyone connected with the Czech brand and its flagship family car. There’s no denying that the Octavia is supremely reliable, our judges said. It has also been hailed for successfully combining comfort with flair. As such, it was also named the Most Reliable Car Overall, scooping a second gong!

DIAGNOSTICS WITH THE EXPERTS

“

Thanks to Kevin’s help, I found the signal wire broken as suspected, behind the N/S/F inner wheel arch just by the washer bottle. Using AutologicLive saved me valuable time on this job! Miles Browning, Director, Brownings Garage Ltd

“

Autologic offers a complete solution: Market leading diagnostic equipment coupled with expert guidance and full technical support. It’s a unique combination that enables you to tackle every job with greater confidence, efficiency and profitability. To learn more about Autologic products and services contact us today! sales-uk@autologic.com

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CarDealerMag.co.uk | 65

Feature.

ON COURSE TO SUCCESS VOLKSWAGEN GROUP’S NATIONAL LEARNING CENTRE

Could Car Dealer’s Ted Welford ever stand a chance of becoming a qualified service technician? He undergoes a day of training and instruction to find out...

t’s no secret that apprenticeships are crucially important to the automotive industry. As good mechanics and salespeople become increasingly hard to recruit, more and more manufacturers are looking at apprenticeships throughout servicing, parts and sales as a way of providing employees for the future. This approach involves firms right across the spectrum – from volume manufacturers such as Kia to luxury brands like Rolls-Royce – and it goes to show how vital apprenticeships are to many companies. But what does it take to be a trainee in this industry? To find out, I headed to Volkswagen Group’s National Learning Centre (NLC) in Milton Keynes to meet a recently qualified apprentice and to get the opportunity to turn my hand to some of the tests needed to become a qualified service technician apprentice. Built in 2005, the group’s NLC brings training 66 | CarDealerMag.co.uk

and development to one national hub, rather than having regional centres as it did before. The huge site hosts training for all models from Audi, Seat, Skoda, Volkswagen and Volkswagen Commercial Vehicles, and has the key purpose of training up the next generation of technicians for the group. I joined in with Volkswagen Commercial Vehicles’ programme, which has 101 apprentices around the country at the firm’s 97 dealerships. The group as a whole has an impressive 1,365 students in the UK, and there are separate apprenticeships for paint and bodyshop work plus TPS – the group’s trade parts service. Chloe Metcalfe recently completed and passed a three-year service technician apprenticeship, which she did while working at Milton Keynesbased dealership Brian Currie Van Centre. As with 80-90 per cent of apprentices, she was offered a full-time position at the VW dealer as a service technician when she qualified.

Chloe told me: ‘As soon as they said I’d passed, I felt a massive sense of achievement. The experience has been great because you get that hands-on experience at the dealership while learning, which is a good thing because it shows you can physically do the job once you’re left to your own devices.’ Alongside coursework, the end test is what’s known as the STA – an abbreviation for the service technician apprenticeship. Chloe might have passed the test and apprenticeship with flying colours, but getting me to be in a position of passing a couple of units was clearly going to be more of a challenge. The STA is made up of seven elements: electrics, diagnostic equipment, ElsaPro and warranty (essentially looking at claims from customers), maintenance (component replacement), precise measurement, airbag handling, and vehicle inspection. Anything electrical falls well out of my comfort

‘Training people at an early age is the only way you can increase technical capacity in your network.'

Des Sanders, Chloe and Ted inspect an engine

Richard Welch

Fluid levels and tyre tread depths are checked

Pictures: Vicki Couchman

Ted and Chloe inspect the underside of a VW Caddy for any major or minor problems zone, considering I struggle to change a lightbulb in a house, and Des Sanders, Volkswagen Group apprenticeship programme manager, thinks it’s not a good idea letting a pure novice loose with some live airbags. So it was agreed that vehicle inspection and warranty topics seemed the best option given my limited knowledge… With a Caddy van brought out of the firm’s storage facility, which contains hundreds of VW Group cars all there to be experimented with, we get the ramp up and it’s time to get to work. The vehicle inspection aims to test an apprentice’s ability to spot both minor and major faults with a vehicle, with the van being deliberately tampered with each time by the assessor to simulate a real-world scenario. Thankfully, Chloe talks us through what I should be looking out for. After inspecting as much as we can on the underside of the Caddy, I – well, we – find major faults with loose wheel nuts and a nail in the tyre.

The next task aims to look at an apprentice’s ability to use the national Volkswagen Group portal and database, known as ElsaPro, to help find the relevant data and information needed to assess warranty claims. It sounds simple – particularly as you don’t have to put the results into action, just find them – but it’s much harder than it seems to extract the right bit of information when dealing with expensive warranty claims, which could potentially cost the Van Centre’s customer thousands of pounds. I haven’t completed enough tasks to be given a big red X or the golden buzzer, but it’s fascinating seeing the infrastructure in place to train up the next cohort of mechanics. At the end of our task, I have the chance to discuss apprenticeships with Richard Welch, the group’s aftersales, training and development manager. He tells me that ‘apprenticeships are massively important for VW’ and adds: ‘Training

people at an early age is the only way you can increase technical capacity in your network. Technicians themselves are highly sought after within the industry, and to recruit or replace an adult technician is difficult. ‘The only way of planning for the coming years is to ‘‘grow your own’’, as you can effectively develop their culture and behaviour from scratch to become part of the Van Centre business and play a part in the group.’ The future is certainly bright for successful apprentices. Sanders said: ‘With VW, there are constant training programmes, so you can work your way up from being an apprentice to the end goal of being a master technician. ‘Whether they’re on the programme or they’ve left, you have built that relationship with the apprentices, and when they come back for additional courses further in their careers, they always come and say hello. That’s a huge part of apprenticeships at VW.’ [CD] CarDealerMag.co.uk | 67

Focus on. NextGear Capital

Partnership offers the path NEXTGEAR CAPITAL

T: 0343 506 0600

Q A

What plans do dealers have for business growth in 2019? A recent survey conducted by NextGear Capital showed 65 per cent of dealers plan to grow their used car business this year, while half are planning to invest in additional used stock. This is despite the backdrop of economic and Brexit uncertainties, so it all points to a positive outlook going forward.

Q A

The most important ingredient in any business growth plan is capital. What are the options currently open to dealers? There are a number of options available, such as their own cash; finance company products; sale or return; bank loans; auction funding plans; or bespoke stocking plans, as offered by providers like us. All have their merits, and dealers would be wise to scrutinise the detail before choosing to go down any one route.

Q A

What do you think is driving the growth in popularity of wholesale finance products? Wholesale funding products have been around for a good while now, however I think dealer understanding has now reached mainstream. They’ve come to realise there isn’t a catch, rather they’re a purposely designed product that allows them to take a more flexible approach with their own capital while attaching a predictable acquisition and sale cost to each vehicle they trade. A survey we ran late last year indicated over half of dealers are now using a wholesale finance product or stocking plan. We ended last year with a 20 per cent increase in the number of dealers we partner with and a 25 per cent increase in the use of their Stocking Plan. The per-unit value of the vehicles we fund increased too, indicating dealers are increasingly using their Stocking Plan to buy higher value vehicles. In addition, there is a growing recognition of the value of the partnership mentality some funders have.

Q A

How do the approaches of different funders vary? Many lenders have a ‘hands-off’ approach, providing funding but little else. For some dealers that’s sufficient, but that type of

W: nextgearcapital.co.uk

NextGear Capital managing director Liam Quegan reflects on what makes a successful partnership and the benefits it can provide. transactional relationship potentially cheats the dealer of value. We would ask dealers to look at the type of relationship they wish to have with their funder and to consider how a partnership can help them realise their business ambitions.

of Customer Service shows how much our customers value this approach. NextGear Capital strives to be a genuine partner to all its current 1,600+ dealer customers, with the support and advice just as important as the funding offered.

Q A

What separates the genuine partner from the transactional supplier? A key point of difference is the willingness of a partner to provide advice and support beyond simply their product offer. In our experience, dealers are often looking for counsel – not necessarily formal advice or consultancy, but someone with a vested partner mentality who they can bounce ideas off, share a challenge or simply provide a listening ear.

Q A

How does NextGear Capital enact this partner-led approach? As a business that exists solely to provide stocking plans that support dealers in growing their bottom line, we thrive on the philosophy of a long-term partnership and shared vision. Our recent high-scoring performance in our customer survey conducted by the Institute

“

Finally, could you sum up how NextGear Capital’s Stocking Plan differs from the alternatives? In addition to our partnership philosophy, the key difference is that dealers receive 100 per cent funding regardless of source. Our customers are not locked in to a single source of stock, nor are they tied to a reciprocal consumer finance product. We’re integrated with over 60 auctions and vehicle wholesalers where the full hammer price plus delivery and buyer’s fees can be settled directly. Alternatively, if buying from another source including part-exchange or a private sale, 100 per cent of CAP clean or the invoice price can be funded. This provides unrivalled flexibility. As NextGear Capital lends vehicles rather than money, another plus is that dealers only pay for what they use – be that one vehicle or 100.

NextGear Capital strives to be a genuine partner to all its dealer customers, with the support and advice just as important as the funding offered.

Liam Quegan

For more information on NextGear Capital’s partner-led approach, 68 | CarDealerMag.co.uk

to profitability How do our customers rate us? Ability to interact

Helpfulness

9.5/10

of staff

with us in the way you prefer

SPEED of service

9.0/10

Ease

9.3

/10

of getting through on the phone

9.1

Handling of

enquiries

/10

9.2

/10

Quality of information and advice

9.0

/10

Competence of staff

9.6 /10

9.0

/10

Product

Reliability

/10

9.0

Ease

of doing business

AN independent survey of NextGear Capital’s customers has revealed high customer satisfaction with the wholesale finance company for the second year running. Renowned industry benchmarking organisation the Institute of Customer Service recently gathered feedback from a cross-section of motor dealers about the service they have

received from NextGear Capital. Based on a one-to-10 scoring system, NextGear Capital received nine-plus scores across a whole range of criteria aimed at testing the company’s customer service performance. High scores of 9.6 and 9.5 were recorded for competence of staff and helpfulness of staff, while 9.3 was registered for speed of service

and 9.2 for handling of inquiries. Further scores within the nine range were achieved for ease of doing business with, and quality of information and advice provided. It’s the second year NextGear Capital has conducted the independent customer survey and each year the scores achieved have tracked above the UK average for all business sectors.

please call 0343 506 0600 or visit nextgearcapital.co.uk CarDealerMag.co.uk | 69

Focus on. Autoglym

Go social – and unlock a world of extra reach for very little spend AUTOGLYM

T: 01462 677766 W: lifeshine.com

hen it comes to enlightening your customers to the wonders of vehicle protection systems, the team at Autoglym LifeShine reckon that it pays to be social. Take a look around you at any point during your working (or domestic) day and the chances are, you’ll spot someone checking their phone for the latest tweet, updating their status on Facebook, or posing majestically for Instagram – and that’s before we even look at more formal platforms like LinkedIn. The scary statistic is that, globally, the average time spent EACH day on social media is some 135 minutes. That’s right, for most people, over two hours of their day is spent glued to their phone or tablet, ingesting whatever’s put in front of them. And, thanks to a craftily concocted set of algorithms, it’s usually a reflection of their other habits, conversations and searches. When it comes to social media, marketing really can be totally targeted as ad sets get delivered in response to even what your phone microphone hears you talking about over dinner. Don’t believe us? Speak about ‘cruise holidays’ a few times near your phone – and see what adverts you start to get… So that begs the question at dealer level, what are you doing to reach those people during the car sales process with Vehicle Protection System (VPS) messaging? If you’re not allocating at least some of your marketing time and budget to it, you’re undoubtedly missing a potentially lucrative trick. At its most basic level, simple messaging on your dealership Facebook page, showing what you offer, along with high-level photography, some sales messaging and pricing, is a great start. But why stop there? With just a little practice, it becomes possible to unlock a world of additional reach for very little spend. Competitions to win a free LifeShine with your next car, for example – by liking, sharing and commenting on posts – not only allow your brand to be shared far and wide, but may actually bring genuine prospects through the door. Think laterally, and use clear,

70 | CarDealerMag.co.uk

informative language to engage your customers as to the features and benefits of VPS. For many people walking through the door, it’s not even something they’ve considered yet. Autoglym’s own social feed is a great case in point. Around six per cent of all traffic to the main website comes from social channels – with Facebook being around three quarters of that figure. Overall, social is ranked as the third biggest referral channel for web traffic. The LifeShine LinkedIn page averages a 4.8 per cent engagement rate against a two per cent industry benchmark, growing followers by 16 per cent in 2018. All of these results are entirely replicable at dealer level. LifeShine has a huge asset bank of images, diagrams and videos to help its dealers gain a foothold in the VPS market on social media. It’s important to reflect the quality of your marque franchise in all output, and social is no exception. So, whatever messaging you’re putting out there needs to be on-point – and on-brand. If you’re not already extensively using social in your parts and accessories sales arsenal, you’re certainly missing a trick. Over two hours a day of exposure time – and the ability to tailor deliverable ads for people who are also searching for new

and used car sales? We’ve literally never had it so good. Take some time to learn about what these platforms can really do. While they’ll never be a substitute for a great salesperson, they can truly make the next person to walk in, call or click much easier to sell to.

CarDealerMag.co.uk | 71

Focus on. Sigmavision

TYRE SALES FEELING FLAT? Achieve up to 46% additional tyre sales and increase customer retention with TreadReader™ 3D tyre measurement TreadReader™ 3D scans reveal any uneven wear due to wheel misalignment or suspension issues, allowing customers to see wear and tear with their own eyes. We produce industry-leading 3D images of tyres, to educate your customers as to the importance of tyre safety and the optimum time to replace tyres.

Calculate your potential increased revenue and help your customers better understand their tyres. Visit: treadreader.sigmavision.com

Rear Left NSR 80% worn

Colour-coded 3D rendering of customer’s tyre, produced by TreadReader™ surface or ﬂush mounted ramp.

2.9 3.4 3.7 3.8 mm

For more information, or to book a visit, call 01865 689065 72 | CarDealerMag.co.uk

Can dealers do more to raise tyre safety awareness? SIGMAVISION

treadreader.sigmavision.com

ost vehicle owners don’t look forward to the prospect of paying for new tyres. Typically, new tyres are a distress purchase – by definition, a purchase decision made when there is no alternative but to replace tyres worn down to the legal limit. Yet there are far more conversations relating to tyre management that a dealer can have with the vehicle owner. For example: ‘We’ve corrected the under-inflation of your tyres, to stop the premature edge wear. This should extend the life of your current tyres.’ Or: ‘We can see from the uneven wear of your tyres that your wheel alignment is out. We can correct that to prolong the life of your tyres.’ For some dealerships, however, these conversations are not taking place frequently enough. The impact of transparency on customer retention Yet dealership customers are now largely familiar with the workshop video and email report on the condition of their vehicle. The widespread take-up of the video inspection report confirms the appeal of clear visual evidence. This level of transparency between dealer and vehicle owner enhances customer trust and confidence, which positively impacts on dealership customer retention. The good news is that this level of transparency is now available for tyre tread depth and tyre wear reporting. A far cry from single-point, manual dip gauge measurements, 3D imaging technology is now available to present a compelling image of tyre condition on a customer’s vehicle. Market leaders in this field are TreadReader workshop ramps from

UK manufacturer Sigmavision. TreadReader ramps produce colour-coded scans of each tyre as the vehicle passes over the ramp. Seamless integration with the workshop flow The flush-mounted Drive Over ramp can be located within the workshop with minimal groundworks. As each vehicle entering the workshop passes over the ramp, en-route to the lift or service bay, tyre tread depths are captured with no disruption to the process flow. The tread depth data and 3D images are directly routed into the garage eVHC or management system. The dealership can choose to present the 3D scans of tyre tread depth via a large display screen in the customer waiting area, or include the 3D images within the inspection report sent by email to the customer. Sigmavision reports that 10 per cent of all tyres scanned using their technology are below the minimum legal tread depth of 1.6mm, and 22 per cent of scanned tyres fall into the ‘advisory’ category of between 1.6mm and 3mm. More interesting still are the 29 per cent of tyres which present with uneven wear due to wheel misalignment. Sigmavision is working with dealer groups to understand the revenue increase available from even partial conversion of these tyre and alignment sales opportunities. More information, and a revenue growth calculator, can be found online at treadreader.sigmavision.com

CarDealerMag.co.uk | 73

Data file.

Thestatistics

| SMMT SALES DATA | TAKING STOCK | FEBRUARY FIGURES

Good news at last as new car market up for first time in six months

ar registrations were up in the UK for the first time in six months in February, rising by 1.4 per cent, according to figures released by the SMMT. In total, 81,969 new cars were registered compared with 80,805 in the same month last year. February is typically a quiet month as buyers hold out for the plate change in March, and last year saw registrations drop by 2.8 per cent year-on-year. The slight increase this time may have been caused by consumers choosing to buy before a potential no-deal Brexit could see imported goods rise in price. More good news came from an increase in registrations of alternatively fuelled vehicles – up by 34 per cent. This was the 22nd consecutive month of growth, with the number of all-electric vehicles registered doubling to 731 units. SMMT chief executive Mike Hawes said: ‘It’s encouraging to see market growth in February, albeit marginal, especially for electrified models. ‘Car makers have made huge commitments to bring to market an ever-increasing range of exciting zeroand ultra-low emission vehicles. ‘These cars still only account for

a fraction of the overall market, however, so if the UK is to achieve its electrification ambitions, a world-class package of incentives and infrastructure is needed. The recent removal of the plug-in car grant from plug-in hybrids was a backward step and sends entirely the wrong message. Supportive, not punitive, measures are needed.’ Giving his reaction to the figures, Auto Trader director Ian Plummer said: ‘With January to March accounting for roughly a third of the year’s total new car sales, the need for a strong first quarter can’t be overestimated. In the context of all the ongoing uncertainty caused in recent months by both Brexit and changing government ‘‘sticks and carrots’’ about which type of fuel we should buy, the fact that the first two months of 2019 are roughly in line with 2018 should be seen very positively. ‘Some of the same brands which stood out in 2018 continue to build on their success in 2019. We’re still confident that sales for the quarter as a whole will remain in line with last year.

‘That’s because the industry remains laser-focused on offering enticing deals for consumers ahead of whatever March 29 will bring.’ Alex Buttle, director of car-selling comparison website Motorway.co.uk, said: ‘A 1.4 per cent increase in new registrations might not be the headlinegrabbing rise the car industry needs, but in a month when Honda announced it was closing its Swindon factory, it doesn’t take much to raise spirits. ‘Could electric finally become the phoenix to rescue a car industry going up in flames? Certainly growth of 34 per cent in a single month would suggest that the AFV sector is soaring. ‘And it’s encouraging that despite the government making the peculiar decision to cut the plug-in grant, monthly sales of electric and hybrid vehicles are still rising faster than most expected. Unfortunately, this momentum could be stopped in its tracks if we leave the EU without a deal. The car industry needs a deal more than any other.’

SMMT sales data Feb/year to date

Top

Most-improved manufacturers in February

MG +140% Chevrolet +100% Suzuki +77% Volvo +48% Renault +46%

Bottom

Worst-performing manufacturers in February

Infiniti -72% DS -64% Porsche -51% Alfa Romeo -38% McLaren -28%

Volvo keeps up its momentum with a strong start to 2019 VOLVO Cars’ sales momentum remained strong in 2019 after the company posted an impressive 11.3 per cent growth in global sales for the first two months of the year, compared with the same period last year. The company sold a total of 93,863 cars in January and February. The considerable sales growth in the first two months was led by the strong performance of Volvo’s award-winning SUV range, spearheaded by 74 | CarDealerMag.co.uk

the XC60, and followed by the XC40 and the XC90. The company’s newest cars, the V60 estate and the US-built S60 saloon, also contributed to the increased volumes. In February, Volvo Cars sold a total of 43,184 cars – up 5.5 per cent compared with the same month last year. The company’s European sales grew 12.9 per cent in the first two months of 2019 to 49,195 cars, compared with the same period last year.

Subaru

Smart

+19% February 2019 Marque

2019

-24%

February 2018

% market share

2018

Year-to-date (YTD)

% market share

% change

2019

% market share

2018

% market share

% change

Abarth

105

0.13

141

0.17

-25.53

365

0.15

420

0.17

-13.10

Alfa Romeo

109

0.13

177

0.22

-38.42

408

0.17

454

0.19

-10.13

Alpine Audi

0.01

0.00

0.01

0.00

5,112

6.24

6,141

7.60

-16.76

13,744

5.66

17,947

7.34

-23.42 -3.31

0.05

4.65

175

0.07

181

0.07

6,870

8.38

6,744

8.35

1.87

16,423

6.76

15,744

6.44

4.31

0.00

100.00

0.00

Citroen

2,226

2.72

2,133

2.64

4.36

6,113

2.52

5,621

2.30

8.75

Dacia

1,008

1.23

1,048

1.30

-3.82

3,483

1.43

3,169

1.30

9.91

0.07

162

0.20

-64.20

311

0.13

452

0.18

-31.19

Bentley BMW Chevrolet

DS Fiat Ford

955

1.17

1,306

1.62

-26.88

2,631

1.08

3,020

1.24

-12.88

10,390

12.68

12,046

14.91

-13.75

27,019

11.12

31,700

12.97

-14.77 -12.80

1,742

2.13

1,959

2.42

-11.08

5,442

2.24

6,241

2.55

2,682

3.27

3,049

3.77

-12.04

8,460

3.48

9,478

3.88

-10.74

Infiniti

0.02

0.07

-72.88

0.02

153

0.06

-68.63

Jaguar

991

1.21

738

0.91

34.28

3,112

1.28

2,912

1.19

6.87

Jeep

189

0.23

171

0.21

10.53

561

0.23

406

0.17

38.18

Kia

3,281

4.00

3,075

3.81

6.70

11,609

4.78

10,657

4.36

8.93

Land Rover

1,559

1.90

1,500

1.86

3.93

7,160

2.95

7,160

2.93

0.00

Honda Hyundai

Lexus

262

0.32

180

0.22

45.56

1,269

0.52

1,067

0.44

18.93

Lotus

0.00

0.01

0.00

0.01

-70.83

0.05

0.06

-24.00

121

0.05

160

0.07

-24.38

1,543

1.88

1,226

1.52

25.86

4,267

1.76

4,087

1.67

4.40

0.02

0.03

-28.57

0.03

-6.17

6,088

7.43

6,088

7.53

0.00

18,337

7.55

17,979

7.36

1.99

448

0.55

186

0.23

140.86

1,202

0.49

661

0.27

81.85

Mini

1,891

2.31

1,786

2.21

5.88

5,142

2.12

4,657

1.91

10.41

691

0.84

513

0.63

34.70

1,904

0.78

2,068

0.85

-7.93

Nissan

2,471

3.01

2,316

2.87

6.69

9,440

3.89

10,233

4.19

-7.75

Peugeot

3,271

3.99

3,066

3.79

6.69

8,924

3.67

8,342

3.41

6.98

Porsche

204

0.25

421

0.52

-51.54

785

0.32

1,415

0.58

-44.52

Renault

1,942

2.37

1,326

1.64

46.46

5,307

2.18

5,073

2.08

4.61

Seat

2,431

2.97

2,358

2.92

3.10

7,953

3.27

6,561

2.68

21.22

Skoda

2,953

3.60

2,838

3.51

4.05

8,355

3.44

8,311

3.40

0.53

Smart

201

0.25

265

0.33

-24.15

691

0.28

866

0.35

-20.21

0.08

1.54

274

0.11

252

0.10

8.73

Subaru

0.09

0.08

19.35

248

0.10

217

0.09

14.29

Suzuki

2,750

3.35

1,552

1.92

77.19

5,756

2.37

4,857

1.99

18.51

Toyota

2,532

3.09

2,703

3.35

-6.33

11,107

4.57

10,678

4.37

4.02

Vauxhall

4,905

5.98

4,860

6.01

0.93

17,155

7.06

17,512

7.16

-2.04

Volkswagen

7,960

9.71

7,036

8.71

13.13

21,184

8.72

19,615

8.03

8.00

Volvo

1,705

2.08

1,150

1.42

48.26

5,784

2.38

3,420

1.40

69.12

0.05

0.04

8.33

261

0.11

174

0.07

50.00

Maserati Mazda McLaren Mercedes-Benz

Mitsubishi

SsangYong

Other British Other imports Total

139

0.17

189

0.23

-26.46

346

0.14

393

0.16

-11.96

81,969

100

80,805

100

1.44

242,982

100

244,420

100

-0.59

Figures supplied by SMMT

CarDealerMag.co.uk | 75

LCV news.

Fullyloaded

| LIGHT COMMERCIAL VEHICLES | FLEET | REVIEWS |

INVESTMENT

NEW NETWORK

Sparshatt Truck & Van’s ‘same-day’ paint service

Vauxhall’s van centres really mean business by JOHN BOWMAN john@blackballmedia.co.uk

TOP-quality paint finishes and industry-leading turnaround times – that’s the offer from Sparshatt Truck & Van, following a major investment in state-ofthe art spray booth technology. The Mercedes-Benz Trucks dealer for Kent and south-east London will be unveiling its new bodyshop facilities to prospective customers at an open day in Sittingbourne on April 3. The two Titan CV booths were supplied and installed at a cost of some £330,000 by Todd Engineering, of Rugeley, Staffordshire. At 18 metres, one is easily long enough to accommodate an articulated tractor unit and 13.6-metre semitrailer combination, while the second, which is nine metres in length, is being used for vans and smaller rigid trucks. Both booths are equipped with LED lighting that surpasses the highest standards required for the automotive refinishing sector, efficient extraction systems, and fully insulated roller shutter doors. A founding member in 1974 of the Mercedes-Benz commercial vehicle network, Sparshatt Truck & Van was acquired by a new team in March 2018. As well as selling Mercedes-Benz and Fuso trucks, it provides comprehensive aftersales support for commercial vehicles of all sizes and brands. 76 | CarDealerMag.co.uk

auxhall has appointed a network of Van Business Centres nationwide that it says offer the highest standards of customer service in sales, aftersales and workshop services for its multiaward-winning light commercial vehicle range. Each Van Business Centre will display Vauxhall’s full LCV range, as well as having available for test drives the all-new Combo Cargo – 2019’s International Van of the Year – the British-built Vivaro and the Movano large van. All 65 Van Business Centres employ dedicated LCV sales consultants, who are highly trained to provide a personal response in line with the customer’s business requirements. Vauxhall-trained technicians will fit only genuine Vauxhall parts, with a one-year warranty. Courtesy vehicles will also be available so that customers can keep their business moving while their vehicle is off the road. Van Business Centres offer total transparency with national, allinclusive pricing. Customers are given a full

explanation of work carried out, with regular progress updates. For added convenience for business users, all the Van Business Centres offer overnight drop-off and pick-up availability. When booked ahead, 90-minute express servicing is also available. Customers can go online 24 hours a days, seven days a week to book their vehicle in at a centre. Van Business Centres have to meet strict selection criteria. Only sites that are able to provide sales and service support and meet strict service level requirements are able to qualify. Derek Wilson, Vauxhall’s

Top-selling LCVs in February Ford Transit Custom 2,023 Ford Transit 1,218 Mercedes-Benz Sprinter 1,204 Ford Transit Connect 777 Vauxhall Vivaro 617

LCV director, said: ‘This important change demonstrates our commitment to looking after the needs of our LCV customers, by delivering a service level that matches up to our outstanding product range that helps carry British business. ‘This programme brings industryleading customer experience to Vauxhall LCV customers, with comprehensive geographical coverage across the UK. ‘Our nationwide network of van experts will deliver the highest standards of skills and expertise while also helping business users save time and money.’

Source: SMMT

Vauxhall Combo Citroen Berlingo Volkswagen Transporter Peugeot Expert Ford Ranger

606 592 553 534 523

LCV registrations, p78

‘It’ll happily conquer bumps and mounds without the merest flutter of complaint.’ An Isuzu D-Max AT35 joins our fleet of long-termers, p95

Sliding doors WITH CRAIG CHEETHAM

A look at the world of buying and selling vans and pick-ups

Mental health should not be taboo – it’s literally a life-or-death issue

very single one of us feels the pressure of life from time to time, but there’s a big difference between being a bit stressed and dealing with a more significant form of mental illness. That’s why I wholeheartedly applaud the Freight Transport Association (FTA) for its most recent campaign, which aims to raise awareness of mental health issues and try to bring down the barriers that stigmatise mental health issues, especially among younger men. Through its Van Excellence scheme, the FTA is appealing to van drivers and LCV operators to commit to tackling poor mental health via its CalmVan pledge, launched in association with the charity Calm (Campaign Against Living Miserably). It’s an obvious, albeit uncomfortable fit, with the biggest killer of men below the age of 45 being suicide. Alarmingly, men of this age are four times more likely than women to take their own lives, with the statistics even greater at the lower end of the age range. In the meantime, while the numbers of female and older van drivers are increasing, the reality is that by far the greatest proportion of van drivers in the UK is men below the age of 45. A near-identical demographic. It’s quite alarming, then, that in research carried out by Van Excellence Scheme partner Mercedes-Benz, one in five van drivers said that their current mental health state was either ‘poor’ or ‘very poor’. Yet the biggest challenge for most of these drivers is suffering in silence, thanks to a fear of ridicule or embarrassment. And that’s something we should, as a nation, be collectively ashamed of. Admittedly, driving a van isn’t the most relaxing way to make a living. Heavy traffic, monotonous long journeys and spending a lot of time alone can, in their own way, have an impact on mental wellbeing, but couple that with materialistic pressures led by advertising and consumerism, coupled with the financial challenges of keeping

a roof over your head or raising a family, and it’s easy to see how it can spiral out of control. Society needs to move the goalposts in order for younger people not to feel under such external pressure. Looking again at those statistics, with 4.3 million vans on the roads, there are – in theory – 860,000 drivers who are facing some form of mental health challenge at the moment. That’s a huge number of people, and in just one profession. All credit to the FTA, then, for facing it head-on. As part of its Van Excellence programme, the association is offering training and support to van operators, helping them to understand how to handle employees struggling with mental health issues. Praise is due equally to Mercedes-Benz for researching van drivers’ mental health, and to Ford for its ‘Elephant in the Transit’ campaign encouraging tradespeople who share vans to open up to each other about their worries and fears. The real eye-opener here, though, is that in professions where male bravado is often at its most prevalent, be that tradesmen or van drivers, it’s refreshing to see such traditionally taboo subjects being discussed at close quarters. It’s something the motor trade should wise up to as well. Much like among van drivers, a large percentage of people in the industry are men below the age of 45. They aren’t the only people to suffer from mental illness of course, but they are the ones who – statistically at least – find it hardest to deal with. In the workshop and on the sales floor, there are almost certainly staff members in car dealerships across the country who are outwardly doing just fine but facing a secret battle of their own. If you’re a manager, make it part of your routine to inquire – in private – about your employees’ welfare. If you’re one of the people out on the shop floor, the approach is even more simple. Just be a mate. It’ll mean more to those who need it than you could ever imagine. It’s okay to not be okay, and it’s good to talk…

‘860,000 drivers could be facing some form of mental health challenge at the moment.’

Craig Cheetham is an experienced automotive journalist with specialist knowledge of the LCV sector.

Turn over the page for the latest LCV registrations CarDealerMag.co.uk | 77

LCV news. LATEST STATISTICS

Stability in February – but more fluctuations heading our way THE UK new light commercial vehicle (LCV) market remained stable in February, with year-onyear demand growing by 1.8 per cent, according to the latest figures from the SMMT. Almost 250 more vans and pick-ups hit British roads in February (typically one of the year’s smallest months) compared with 2018, as strong market incentives boosted registrations.

Large vans weighing 2.5 to 3.5 tonnes drove growth, rising 4.2 per cent to take 65 per cent of market share. Car-derived vans weighing 2.0 tonnes also saw an increase – up 4.6 per cent. Meanwhile, demand for pick-ups and mediumsized vans experienced falls in registrations – down 2.4 per cent and 4.5 per cent respectively. Year-to-date, 36,620 new LCVs have been

registered, representing a rise of 5.8 per cent on the first two months of 2018. Mike Hawes, SMMT chief executive, said: ‘The increase follows a turbulent few months for van registrations, and the effect of ongoing political and economic uncertainty on business confidence is likely to result in further fluctuations throughout the year.’

Registrations of new commercial vehicles less than 3.5 tonnes February 2019 Marque

2019

February 2018

% market share

2018

Figures supplied by SMMT

Year-to-date (YTD)

% market share

% change

2019

% market share

2018

% market share

% change -5.43

4,809

33.43

5,414

38.30

-11.17

11,874

32.42

12,556

36.28

Volkswagen

1,568

10.90

1,690

11.96

-7.22

4,177

11.41

4,062

11.74

2.83

Peugeot

1,457

10.13

1,399

9.90

4.15

3,568

9.74

3,377

9.76

5.66

Mercedes

1,493

10.38

1,257

8.89

18.77

3,282

8.96

2,629

7.60

24.84

Ford

Citroen

1,156

8.04

1,049

7.42

10.20

3,106

8.48

2,703

7.81

14.91

Vauxhall

1,486

10.33

861

6.09

72.59

3,072

8.39

2,351

6.79

30.67

Renault

632

4.39

689

4.87

-8.27

1,642

4.48

1,939

5.60

-15.32

Mitsubishi

293

2.04

291

2.06

0.69

1,542

4.21

988

2.85

56.07

Nissan

310

2.16

384

2.72

-19.27

1,115

3.04

1,108

3.20

0.63

Toyota

273

1.90

213

1.51

28.17

937

2.56

791

2.29

18.46

Fiat

346

2.41

267

1.89

29.59

891

2.43

726

2.10

22.73

Iveco

208

1.45

281

1.99

-25.98

459

1.25

527

1.52

-12.90

Isuzu

149

1.04

179

1.27

-16.76

343

0.94

437

1.26

-21.51

0.58

0.53

10.67

158

0.43

192

0.55

-17.71

Renault Trucks Land Rover

0.15

0.00

133

0.36

0.00

MAN

0.24

0.01

3,300.00

102

0.28

0.04

580.00

Isuzu Trucks

0.21

0.18

15.38

0.23

0.17

38.33

LDV

0.13

0.14

-10.00

0.16

0.15

13.73

SsangYong

0.04

0.00

0.13

0.09

51.61

0.07

0.05

42.86

0.05

0.07

-13.04

Hyundai

0.01

0.00

0.03

0.02

83.33

Dacia

0.00

0.18

0.00

0.11

0.00

Great Wall

0.00

14,384

100.00

14,135

100.00

1.76

36,620

100.00

34,610

100.00

5.81

Fuso

Total light CV

Registrations of new commercial vehicles 3.5 tonnes to 6.0 tonnes February 2019 Marque

2019

February 2018

% market share

2018

Figures supplied by SMMT

Year-to-date (YTD)

% market share

% change

2019

% market share

2018

% market share

% change 19.14

Mercedes

112

32.18

19.13

69.70

193

27.34

162

18.56

Fiat

23.85

21.45

12.16

185

26.20

171

19.59

8.19

Peugeot

16.38

16.23

1.79

131

18.56

167

19.13

-21.56

Iveco

14.08

8.41

68.97

13.60

6.99

57.38

Ford

6.32

27.54

-76.84

6.23

268

30.70

-83.58

Vauxhall

2.30

0.87

166.67

2.69

0.92

137.50

Citroen

1.15

3.48

-66.67

1.84

1.72

-13.33

Renault

1.15

1.74

-33.33

1.27

0.92

12.50

Volkswagen

0.00

0.87

0.00

0.99

1.37

-41.67

MAN

1.72

0.00

0.85

0.00

Renault Trucks

0.57

0.00

0.28

0.00

Isuzu Trucks

0.29

0.00

0.14

0.11

0.00

348

100.00

345

100.00

0.87

706

100.00

873

100.00

-19.13

Total heavy CV

78 | CarDealerMag.co.uk

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Workshop.

Aftermarket

SERVICING & REPAIRS | PRODUCT NEWS | PEOPLE & PLACES

SMPE

Investment will lead to excellence

SUCCESS STORY

Wheel repair firm on a roll as demand soars by JOHN BOWMAN john@blackballmedia.co.uk

STANDARD Motor Products Europe (SMPE) has announced investment plans for its UK base with the aim of making it a European centre of excellence for engineering. The engine management specialist is currently recruiting engineers for its Nottingham site, which has benefited from investment in new workshop facilities and engineering equipment to aid rapid prototyping of products. Furthermore, SMPE’s operations in Europe have continued to evolve. The company boasts a new production facility in Poland to meet increased demand from mainland European customers and this again will be supported by the UK centre of excellence. Richard Morley, SMPE commercial director, said: ‘We’re delighted to bring this good news story to the automotive trade and our local area. ‘Our headquarters in Nottingham will take the lead in customer service, warehousing, finance, marketing and sales, but will also focus heavily on product engineering and development, making it our European centre of excellence. ‘Supported by our operation in Torun, Poland, which services a large proportion of customers in mainland Europe, we are now perfectly positioned to expand our engineering and production footprint for the benefit of all our customers.’ 80 | CarDealerMag.co.uk

heel repair specialist DA Techs has moved to bigger premises because of huge demand for its services. Over the past year, the Lancashire-based company has seen a 200 per cent increase in sales. It is now repairing nearly 700 wheels per month, has taken on more staff, and now has eight technicians, four of whom were previously unemployed. The move to new premises in Adlington follows an earlier refit of its previous home on the same industrial park over the summer, including the installation of a larger oven. Just a few months later, though, it became clear that a bigger base would be needed. Chairman Pete Radcliffe said: ‘Along with the need for new premises, we’re really proud about the skilled employment opportunities we are offering local people. What we provide is unique, so we’ve had to develop our own training programme and it’s worked really well for us – our apprentice technicians are excellent and keen to learn new skills.’ Radcliffe added: ‘We’ve disrupted the market with a service that is

DA Techs apprentice Joe Westhead has a promising career ahead considerably better than anything previously available and we intend to continue to develop DA Techs with innovative new services to deliver what the market wants.’ The company’s newest apprentice technician, Joe Westhead, was stacking shelves in a supermarket before joining the firm last August. Commenting on his new role, he said: ‘I love working as part of a team, learning new skills and knowledge. But most importantly, it’s given me confidence and a

career, which is so different from working in a basic-level supermarket job.’ Along with moving to the new unit in December, DA Techs – the name is an abbreviation of Diamond Alloy Technicians – is putting another mobile alloy repair vehicle on the road. The second vehicle will deal with repairs to ordinary alloy wheels – a service DA Techs hadn’t originally planned to offer but has added owing to demand from both private clients and car dealers.

Extra pads and discs added to range LEADING UK clutch and brake specialist National Auto Parts has added further pads and discs to its burgeoning portfolio. In March alone, two new discs and 12 new pads were added, ensuring that when it comes to the widest available range and most up-to-date parts, aftermarket

customers choose National as their ‘go to’ supplier partner. The latest brake pad introductions, for both front and rear, cover a broad range of popular makes and models, including the BMW X5, Mini Roadster, Peugeot 508, Volvo C70, Mazda MX-5 and Toyota iQ.

ANNIVERSARIES

Sponsorship deal enters second year

Halfords Autocentres offer great-value services that often exceed the manufacturer’s recommendations MELKSHAM Motor Spares is continuing its sponsorship of the Formula Ford Championship at Castle Combe Circuit for a second year. Following a hugely successful year with the circuit during 2018, as part of the business’s 50th-anniversary celebrations, the Melksham Motor Spares team will again be present at a selection of the race track’s crowd-pleasing Action Day events throughout 2019. This means that all performance and track-based car fans in attendance will have access to some of the very best new products and innovations. With local man Luke Cooper being crowned the Formula Ford 1600 champion in 2018, the 2019 season promises to be just as thrilling and sees the 50th anniversary of the championship, with special anniversary branding and a one-off trophy race at the season-opening Howard’s Day racing event taking place to commemorate it. Phil Dodd, managing director of Melksham Motor Spares, which is one of the south-west’s largest independent motor factors, said: ‘On the back of last year’s success that coincided with our 50th anniversary, it seemed a natural choice for us to continue supporting the circuit into 2019 as the Formula Ford Championship marks its own 50th year.’

SURVEY RESULTS

Drivers reminded they can use independents A

lmost half of Britain’s car owners (44 per cent) believe that getting their car serviced by an independent garage will invalidate their warranty, despite a change in the law nearly 15 years ago that prevents this from being the case. The statistic was uncovered by nationwide servicing and repair chain Halfords Autocentres, which surveyed more than 22,000 motorists via the Halfords Autocentres roadworthiness quiz, which tests drivers’ knowledge of car maintenance and motoring laws. The Block Exemption Regulation introduced by the European Union in October 2003 means that a vehicle’s warranty is no longer invalidated if a car is serviced at

by DAVE BROWN @CarDealerDave

a non-franchise dealer, as long as manufacturer-approved parts are used. That means car owners have greater choice when it comes to getting their car serviced. The data also found that 40 per cent of drivers are unaware of new MOT legislation that came into effect in 2018, which tests items such as diesel particulate filters, reversing lamps and dashboard warning lights. This comes as little surprise, as the DVSA has revealed more than a million vehicles have failed the MOT test through dangerous defects since the new rules came into force.

Other statistics that the quiz uncovered were that 40 per cent of drivers had no idea what the minimum legal tread depth on their tyres was, and couldn’t correctly identify the date stamp on their tyres to tell how old they were. A further 22 per cent believed that there was no law against driving with an empty screenwash bottle – but this can lead to a fine of up to £1,000 and three penalty points. Andy Randall, Halfords Autocentres managing director, said: ‘Many motorists are put off essential car maintenance by the fear of main dealer pricing. ‘We offer great-value services that often exceed the manufacturer’s recommendations, and will not affect the car’s warranty.’

Delight at new Trico wiper distribution partnership TRICO has partnered with Marathon Warehouse Distribution, enabling motor factors to have same-day access to OE-quality wiping products from the Trico Flex and Exact Fit ranges. For more than 100 years, Trico has been a global leader in wiper technology. From hybrid wiper blades and beam blades to conventional wipers and speciality blades, Trico offers more styles to fit driver needs than any other wiper manufacturer. Marathon Warehouse

Distribution is an independent national wholesale distributor, delivering a growing portfolio of brands to motor factors and accessory shops from its 14 regional distribution centres across the country. Trico senior manager Sam Robinson said: ‘We are delighted that Marathon will be distributing our industry-leading Flex and Exact Fit wiping programmes. ‘We also look forward to engaging with factors, offering marketing and training support.’ CarDealerMag.co.uk | 81

Data File.

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It’s time to review finance processes

I have seen a few articles talking about car buyers being overcharged by more than £1,000 when taking out car finance. The articles suggest this will be a problem for us dealers in the future. Am I at risk? These reports have arisen on the back of the Financial Conduct Authority’s (FCA) review of the motor finance sector. The review, which started in July 2017, was set up to ask questions about whether car dealers were lending in a responsible, fair and transparent manner. The result of the report is that the FCA expects all lenders and brokers to review their processes and amend where necessary. Of particular concern to the FCA was a broker’s ability to choose which deal to offer the consumer based on the level of commission they would receive from brokering the deal (Difference in Charges models). As with everything FCA, it wants to ensure that the consumer gets the best deal and is protected

from any unfair practices. Brokers with the ability to charge the customer a higher interest rate purely so that they can earn more commission was of significant concern to the FCA, and is the main reason behind the headlines you have read about consumers being overcharged. Commission transparency is a general bugbear of the FCA, and its concerns were heightened by its 122 mystery shopper visits, which saw only one out of 37 franchised retailers, four of 60 independent retailers, two of 14 car supermarkets and four of 11 online brokers disclose that a commission may be received for arranging finance. The FCA accepts that commission may have been declared at a later stage of the process, but it felt this was potentially too late. Even in the cases where there was early commission disclosure, the FCA felt this was often not clear enough and could lead to potential breaches of the Consumer Credit Sourcebook (CONC).

ADVICE

Furthermore, the FCA found that the benefit of lower monthly payments as part of a PCP deal was generally promoted but that the downside of PCP and the comparative benefits of other finance options were not readily made available. As to how this affects you as a broker, you will need to review your processes to ensure that they meet the requirements of the CONC and, in particular, ensure there is transparency around commission as well as the usual care over customer affordability. A thorough review now will help you keep the ‘ambulance chasers’ away. Those chasers will be busy hunting down the final few mis-sold PPI claimants at the moment, but come August 2019 when the PPI deadline closes, PCP and ‘mis-sold’ car finance will become their bread and butter. Mis-sold PPI adverts will be replaced with missold car finance adverts, so act now to get your processes and paperwork in order to protect your bottom line.

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they even know that they want them! n Make 2019 your year by ensuring that your website and digital showroom is the very best that it can be! Click Dealer’s team of in-house experts will look over your website and advise on any recommended changes to improve your visibility online! n At Click Dealer, we ALWAYS put our customers first! That’s why we’d like to offer Car Dealer Club members £100 off their first bill when they take out any of our products or services!

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82 | CarDealerMag.co.uk

A free telephone consultation and other great benefits, too n A free telephone consultation worth £100. n Lawgistics’ Basic package worth £95. n Twenty-five per cent off the ‘pay-on-use’ legal helpline and casework service. n Up to 25 per cent off any stationery or warranty products. n Upgrade the Basic package and receive £100 off the Small Business package or £250 off the Professional package.

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Text ‘resignation’

A sales employee of mine had an accident at work. He got very upset and sent me a text to say he was looking for another job. I sent him written acceptance of his resignation but he responded in a letter to say he had not resigned and that he’d sent the text because he was upset. Can I hold him to the resignation? Resignations given in the heat of the moment are not necessarily a reflection of an employee’s true intentions, which is why an employer should always request that a resignation be given in writing. Texting you to say he was looking for another job does not sound like a planned resignation, but more of a kneejerk reaction owing to the stress of the accident and notification of his intention to resign at some point in the future. You are not required to accepted a rescinded resignation unless you want to, but if that text was sent in the heat of the moment, an employment tribunal may find that it was unfair dismissal. Remember – your employee did not state in his text he was resigning, merely that he was looking for another job.

WANT TO UPGRADE?

WHY I LOVE LAWGISTICS

‘Lawgistics has done us proud and we’re very pleased with the service we’ve had’ ELAINE Carter is the owner and director of Tisbury Motors – a successful independent Wiltshirebased servicing centre that has recently bought another garage in Salisbury. She told us that Lawgistics had been very helpful during the expansion process. ‘When we were buying another garage, Lawgistics were there to assist us throughout. ‘They were very helpful when creating staff contracts and templates, and also with issues we didn’t fully understand – such as the mandatory pension scheme and also apprenticeships. ‘For any query I’ve ever had, there has always been someone at the other end of the line to talk to.’ Tisbury Motors prefers to settle disputes with customers in-house if at all possible – so doesn’t tend to approach Lawgistics in those cases. Elaine, who has 30 years of experience in the trade, instead uses Lawgistics to help with staffing and also asks it for assistance when getting to grips with any new legislation being introduced.

She told us: ‘Me and my husband are fussy, and we like everything to be precise, as well as having things properly explained to us. ‘I’m a straight-up person, and I like to be told straight up, and Lawgistics fits in with our business excellently.’ Elaine has been with Lawgistics for seven years, having previously used her mother for all legal queries as she was a solicitor’s secretary until she retired. ‘Having used my mum for legal advice for a long time, I was quite dubious initially to use another company, even though Lawgistics had been recommended to me by other garages. However, it has earned our trust, and did so straightaway after handling our first inquiry.’ Elaine added: ‘Over the years, Lawgistics has done us proud and we’re very pleased with the service we’ve had. Its team always make you feel that you’re getting the best possible advice, which is hugely important for us.’ Elaine concluded that she was ‘always happy to recommend’ Lawgistics to others in the industry.

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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.

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CarDealerMag.co.uk | 83

Auctions.

February fallback follows January progress.

Market Insight, p86

Pearson

AUCTION STATIONS

Portbury docks in Bristol

BCA

Record week of arrivals at Portbury operation

CA enjoyed a record week for arrivals at its Portbury operation. The week starting February 11 saw more than 12,250 vehicles roll off ships at Portbury – an 11 per cent increase on the previous highest week on record in 2016. The news follows the recent announcement that MG Motor UK is expanding its new vehicle operations with BCA to handle a sizeable increase in new vehicles at the docks in Bristol in 2019. Volumes at the site have risen following organic growth from existing and new customers. Ian Griffiths, operations director at BCA Portbury, said: ‘This record week reflects the dedication of the Portbury team to deliver exceptional levels of service,

alongside ongoing process improvements and the smarter use of real-time data. This allows us to greatly increase the speed that we can process vehicles through the site.’ He added: ‘The compound team at BCA Portbury is using algorithmic data within their management information systems to optimise the deployment of manpower. ‘This ensures compound and workshop resources are fully utilised. Proactive planning between BCA Vehicle Services, Bristol Port and the car manufacturers allows BCA Portbury to process vehicles quickly and efficiently.’ BCA’s Portbury operation offers various specialist services to vehicle manufacturers, including marine inspection, compound handling, storage and technical services.

Optimism for March wholesale market MARCH looks set to be another strong month for motor auctions. That’s according to James Tomlinson, chairman of the National Association of Motor Auctions (NAMA), who said more than 80 per cent of its 34 members Car dealer new strip ad Revised expected volumes to remain stable or

increase. He added: ‘NAMA is optimistic that demand and prices in the used car market will remain stable and the first quarter of 2019 will mark another successful year for the auction sector.’ Average age and mileage look set to 4/4/18 12:01 Page 1 remain steady over March.

‘Sorting the wheat from the chaff will be critical to trading profitably.’

Stuart Pearson is BCA UK’s chief operating officer for remarketing. Visit bca.co.uk or call 0345 600 6644.

Fixed cost buyers premium User friendly website & stock locator. On-line bidding

Professional Vehicle Auctions for Professional Vendors & Buyers

84 | CarDealerMag.co.uk

s sourcing good-quality stock becomes ever more competitive for dealers, identifying and retaining those retail-quality part-exchange cars is essential. And in the March plate-change period, dealers will see increasing numbers of part-ex vehicles, so sorting the wheat from the chaff will be critical to trading profitably. BCA Dealer Pro allows dealers to appraise, value and remarket part-ex vehicles and maintain inventory at the touch of a screen, with the freedom to see what is available across the entire dealer group where applicable. Available as a fully functioning app, BCA Dealer Pro allows for the part-exchange process to be managed quickly and easily, helping dealers to appraise, value and retain or remarket part-exchange vehicles with minimum fuss and maximum efficiency. In partnership with BCA Partner Finance, the part-ex itself can be funded, helping cash flow and freeing up capital. Operating within the Dealer Pro platform, it allows dealers to appraise the vehicle and then apply for funding based on the BCA valuation. It creates a unique stock management solution for the market. The Dealer Pro platform enables dealers to monitor stock levels, refresh valuations and decide which vehicles to remarket through BCA, while BCA Partner Finance offers dealers secure funding to purchase used cars at BCA and through part-exchange. Together, Dealer Pro and Partner Finance create a stock management solution that is flexible and scaleable, allowing dealers to react quickly to market conditions and make the most of any profit opportunities that arise.

Excellent variety of weekly stock from premium sources

The Fleet Auction Group

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Profit springs from accurate appraisal and quick churn

Fleet Car Sales every Tuesday at 1pm & Thursday at 10am Van sales every Wednesday at 10:30am Wheelchair Accessible Vehicles fortnightly, Wednesdays at 10am Truck, Trailer & Plant fortnightly, Wednesdays at 12noon Collection of vehicles 24 hours a day, 7 days a week Purpose built 15 acre auction complex Enclosed and heated auction halls and viewing area Vehicle refurbishment facility The UK’s finest auction restaurant Central UK location (Leicestershire) NAMA Vehicle Grading

Call 01530 833535 or go online for account application

Taking Stock.

Remarketing specialist BCA analyses its latest Pulse report to give its thoughts on matters that dealers need to consider in the months ahead

Competitive bidding across the board during a strong February Values are rising for fleet & lease, dealer part-exchange and nearly-new vehicles, reports Stuart Pearson, chief operating officer for BCA’s UK remarketing operation.

verage used car values rose at BCA in February 2019 as strong demand continued from buyers. The latest BCA Pulse Report shows that average used car values rose by 3.3 per cent compared with January – a rise of £322. The headline figure of £9,798 is the fourth highest on record and reflects rising values for fleet & lease, dealer part-exchange and nearly-new vehicles. Year-on-year, the headline value figure improved by £300 (3.1 per cent). February was a strong month in the remarketing sector and BCA saw competitive bidding across the board from high-value prestige stock to older, higher-mileage budget vehicles. As expected, BCA saw sustained demand in the run-up to the March plate change, with thousands of professional buyers using the newly launched BCA Buyer app to make it even

easier to find the vehicles they need. BCA has seen a long-term evolution in average used car values across the board, which reflects both the wide choice and excellent quality of stock we offer on behalf of our vendors and the consistent demand from professional buyers to meet their retail needs. Fleet & lease values averaged £11,522 at BCA in February 2019 – a modest increase of £69 over January but a significant £730 (6.7 per cent) uplift compared with a year ago. The retained value against original MRP (manufacturer’s retail price) improved by three-quarters of a percentage point to 44.04 per cent compared with 2018. Average age at time of sale has risen slightly to 39.7 months, with average mileage falling by more than 1,500 miles against a year ago.

BCA headline figure :

£9,798

Dealer part-exchange values at BCA rose to £5,167 in February 2019 – a £51 increase over January. Year-on-year values improved by £343, equivalent to a 7.1 per cent increase. Rising values reflect both the increased demand from buyers and the quality of the business BCA continues to win and retain in this sector. Average age and mileage decreased compared with the same month in 2018. Sustained demand for nearly-new vehicles at BCA continued into February, with values rising to £23,084 during the month and strong competition for stock across the board. Values were up by £3,333 (16.8 per cent) compared with the same month last year. Model mix has a significant effect in this very low-volume sector, with brand-specific winners and losers.

Average dealer part-exchange value:

£5,167

CarDealerMag.co.uk | 85

Market Insight.

...in association with ASE-global.com PICTURE: KATIE COLLINS / PA

Positive movements in January followed by February fall back Sole results came from Inchcape, who reported 64 per cent drop in profit before tax, says Mike Jones.

fter the positive movements in motor retail share prices during January, we saw a fall back during February, with uncertainty over the full-year outlook negatively impacting on the share prices of many of the UK listed motor retailers. During February we saw the announcement of Trevor Finn’s successor at Pendragon, Mark Herbert. Mark was due to join at the start of March, with an effective one-month handover before Trevor leaves the business at the end of the month. Whilst not a name on many industry commentators’ lists, Mark has significant motor retail experience through his 20-year career with Jardine Matheson, including at the business in

‘Uncertainty over the full-year outlook negatively impacted on share prices . . .’

the UK. We also learnt that the new CFO, Mark Willis, will be joining the business on April 8, just over a week after Tim Holden is scheduled to leave. Financial performance February represents the calm before the storm, with March not only being the most important registration month of the year, but also seeing a raft of announcements relating to the full-year 2018 accounts for the listed retailers who have a December year-end. The sole results announcement came from Inchcape, who reported a 64 per cent drop in profit before tax. A significant driver of this was a goodwill impairment charge of £175m and other asset impairments of £23.2m. The goodwill impairment was based on a review of revised five-year financial forecasts, assuming a non-disorderly exit from the EU and represents 66 per cent of the total goodwill previously recognised for the UK retail business. Acquisitions and disposals Pendragon continued their reduction in the Stratstone division with the disposal of their

Share price movement since the start of 2019

Pendragon

-3.6%

11.8%

Vertu

-2.0%

9.4%

Lookers

-5.0%

11.0%

Inchcape

-1.4%

2.4%

Cambria

4.9%

17.4%

Caffyns

2.7%

Marshall

0.9%

4.8%

Motorpoint

-1.0%

-2.9%

BCA

1.5%

-7.5%

Auto Trader

4.1%

4.6%

Jaguar and Land Rover dealerships in Stoke to Rybrook. The disposal was not formally announced by Pendragon on completion on February 28, and avoids Pendragon having to combine the two dealerships into a new Arch Concept facility.

Mike Jones is chairman of dealer profitability specialist ASE plc. You can read his column here every month. 86 | CarDealerMag.co.uk

Share price movement during February 2019

On Your Side.

...in association with Legalsolutions4u

Put a warranty on each car you sell and use it to your advantage Legal Solutions 4U offers self-administered warranties and will process all claims on behalf of a dealership.

ost of the garages that we act for go above and beyond with their customer service to keep the customer happy. However, by selling a used vehicle, problems can occur no matter how thoroughly the car has been prepared. Most garages are more than happy to repair a vehicle as it keeps the reviews at five stars and generally the customer is happy to agree to a repair. The issue with completing a repair is that the garage uses its first and only opportunity to repair the vehicle within the first six months of the customer’s ownership. We advise all our garages to put a warranty on each and every vehicle and use the warranty to your advantage. If a car is repaired through the warranty, this should be regarded as a third-party repair and is not the garage’s one opportunity to repair. The reason for this is a warranty repair is a contractual obligation and not a statutory obligation. Therefore, in theory, a vehicle can be repaired multiple times under warranty and cannot be rejected by a customer. The problem we then encounter is when a dealer is on an insured warranty scheme and the claim is declined due to the fault being present at point of sale or because the ‘item’ is not covered under the warranty policy. The customer then returns to the dealership in order to get the issue resolved and the dealer ends up paying out for the repair in any event which means the dealer has paid out for a warranty and paid for a repair! In order to maximise a dealer’s protection and increase a dealership’s profitability, more dealers are switching to self-funded warranties (also known as pot schemes). There are many commercial benefits to a dealer running their own self-funded warranty.

Firstly, the dealer gets returned 100 per cent of the unused claim fund thus increasing their profitability. Secondly, the dealer has full claims autonomy to decide if they are going to cover a claim or not. This, in turn, gives rise to a much greater amount of flexibility for customer service. The dealer gets a much greater cash flow benefit as they are holding and controlling the warranty pot of money. To maximise the benefit of a self-funded warranty, you should ensure that your warranty administration is completed by a third party as this puts distance between the dealer and the customer in the warranty claim and ensures a professional service to the customer. We recommend that the wording on your warranty booklets is drafted correctly to ensure

maximum flexibility and coverage. At the very least, it should reflect your obligations under the Consumer Rights Act 2015. Legal Solutions 4U offers dealers selfadministered warranties and will process all the claims on behalf of a dealership to ensure that the dealer gets maximum protection whilst ensuring the customer receives first-class service. Every case we process is looked at legally through the Consumer Rights Act 2015. We advise the dealership if we believe that a customer could reject the vehicle or if it needs to be repaired. It is down to the dealership to decide what they wish to do. l For more information on how to protect your dealership and increase your profitability call 0191 481 3992.

CarDealerMag.co.uk | 87

Extra Cover.

...in association with Gallagher

Don’t compromise insurance cover by focusing only on price Leon Bosch discusses the rise of aggregator and comparison sites and how dealers can avoid some pitfalls.

he rise of price comparison and aggregator sites over the past few years has been driving a mind-set of premium over cover in the private market. This now looks to be transferring into the commercial market too, but independent car dealers need to understand that under-insuring to obtain the desired level of premium could leave their business exposed. The flexibility these sites give businesses to obtain and tailor-make policies to suit their needs means that levels of cover can be reduced or entire sections of cover removed to bring the premium down to suit the company’s budget. The problem with this approach to renewal is that dealers could be compromising on their level of protection. The only time they would realise there’s an issue is when they make a claim and find out that they’re not covered, or the settlement is less

‘Take time to know where your risks lie so you can brief your broker appropriately.’

than expected, which could place businesses in a difficult financial position. Working with a broker would be the advised option to take. However, businesses need to be wary of brokers that may exploit them by finding a cheaper premium to win the business instead of providing a service with their needs in mind. To avoid these pitfalls, there are some simple rules to follow when choosing a broker and an appropriate policy: •Deal with brokers that know the industry, as they are more likely to understand the issues affecting your business and the level of cover you need. They can then negotiate with providers to get you a suitable deal that still leaves your business appropriately protected. •Take time to know where your risks lie so you can brief your broker appropriately. •Disclose all material facts upfront, whether they are previous claims or even CCJs. You will then ensure that when the time comes to make a claim, there will be less risk of a policy being voided or a claim refused. •Don’t focus solely on the premium, because the most important thing is to safeguard your business and make sure you’re adequately covered. •Question sums insured, endorsements and

exclusions – essentially, ask lots of questions so you’re 100 per cent confident in the policy and provider recommended. •Start your renewal process in good time. Investigating all the policies available takes some time, so for the broker to do the best job possible it’s important to give them adequate time. •Be aware of involving too many brokers in the renewal process. While you may think that some healthy competition will help you get the best policy at the lowest price, some insurers could refuse to quote to avoid getting into the awkward politics between the brokers. •Ensure that you know the provider your broker has placed you with, so that if the time comes to claim, you’re confident they will be able to fund claims in the long run. The key priority, above all else, should be protecting their business – the reason for taking out insurance in the first place. If done under the correct guidance, covering all risks, a dealership can avoid finding itself at financial risk following a claim. •To learn more about the automotive practice and how it could help you and your business, contact the automotive team on automotive_enquiries@ajg.com or 01582 542330.

Leon Bosch is managing director of the automotive practice at commercial insurance broker and risk management specialist Gallagher. Contact the automotive team on automotive_enquiries@ajg.com or 01582 542330. Arthur J. Gallagher Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered office: Spectrum Building, 7th Floor, 55 Blythswood Street, Glasgow, G2 7AT. Registered in Scotland. Company number: SC108909. www.ajg.com/uk

88 | CarDealerMag.co.uk

Gallagher Automotive Specialist Motor Trade Insurance

Helping protect businesses across the country for over 50 years - from independent repairers and small garages to larger franchise dealerships Contact us to find out more: T:

+44 (0) 800 612 2284

E: automotive_enquiries@ajg.com

GST-225260264

ajginternational.com Arthur J. Gallagher Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered Office: Spectrum Building, 7th Floor, 55, Blythswood Street, Glasgow, G2 7AT. Registered in Scotland. Company Number: SC108909. FP04-2018 Exp. 04.01.2019 ÂŠ2018 Arthur J. Gallagher & Co.

CarDealerMag.co.uk | 89

READY TO HIRE? WANT TO GET IT RIGHT?

THE UK’S LEADING AUTOMOTIVE RECRUITMENT AGENCY

WITH THE MOST AUTOMOTIVE CANDIDATES ACROSS THE WHOLE UK

DON’T LEAVE RECRUITMENT TO CHANCE.

01603 701 077

90 | CarDealerMag.co.uk

Sean Speaks.

...in association with Close Brothers Motor Finance

Managing complaints and protecting your reputation A formal pre-sale process can help your business stay safe and compliant , says Sean Kemple.

e all know that it is easier and more cost-effective to retain an existing customer than find a new one. Many of our dealer partners excel at customer service and enjoy a high portion of repeat business as a result. However, it only takes one bad experience as a customer, or a vehicle that develops a fault, to threaten all that hard work. This threat is amplified by the fact that customers today are driven more and more by recommendations and review sites like TrustPilot and other similar ones. Customer experience is more transparent now than it’s ever been. To help keep dealers safe and compliant, we recommend implementing a formal pre-sale process to help avoid customer complaints arising and protect you against future costs. The handover process too is a crucial part of the customer service experience you’re delivering, and care should be taken to use this opportunity to set and manage your customers’ expectations for the benefit of both parties. Before you start considering new processes for your business, however, it is important to remind yourself of the key parts of legislation relevant to customer complaints.

The Consumer Rights Act 2015 – what you need to know Within first 30 days of the sale of a vehicle Did you know a customer is entitled to reject their vehicle if faults are found to have been present at the point of sale? In the event of a complaint, you need to prove beyond reasonable doubt that the fault was NOT present on the vehicle when it was sold. From 31 days to six months following sale of the vehicle Did you know that if it is proven that a fault was present when the vehicle was sold, a customer is

HERE TO HELP At Close Brothers Motor Finance, we are committed to providing the best possible service and support to both our customers and our dealer partners. We take all complaints seriously and in the event that we receive a complaint from a customer, we will work with our dealer partners to resolve this and help them entitled to have the fault repaired free of charge? If the repair is unsuccessful, the customer is then entitled to reject the vehicle. You may carry out multiple repairs on the vehicle if the customer is happy with this. We recommend getting this acceptance in writing. You are also entitled to offer the customer a discount instead of a repair or take the vehicle back and end any finance agreement. However, it’s important to note that this is the customer’s decision. Outside six months following a vehicle sale Similar to the point above, if it is proven that a fault was present when the vehicle was sold, a customer is entitled to have the fault repaired free of charge. However, at this point in time it is the customer’s responsibility to prove beyond reasonable doubt that the fault was on the vehicle at the point of sale. If a repair is carried out and the customer alleges the repair is unsuccessful, they must prove this. It’s true to say that cars can develop faults over time; faults that cannot always be predicted or prevented. To protect yourself from any unnecessary costs or future unpleasant disputes with customers, we’ve outlined our top tips for implementing a robust pre-sale process.

Top tips 1. Capture the true condition of the vehicle and any faults or damage at the point of sale •Make sure you capture anything on the vehicle that can be defined as damage (as defined by the BVRLA). •Ask the customer to inspect the vehicle for any additional damage. •Once the customer has inspected the vehicle and is happy, ask them to sign

navigate both the Consumer Rights Act 2015 and the Financial Conduct Authority’s Dispute Resolution requirements. We aim to resolve complaints within 40 days wherever possible and have a dedicated complaints team that helps dealers to manage customer contact, gather evidence and take the correct steps to resolve complaints. and confirm there is no other damage present. •Include the BVRLA standards definition of damage in the declaration. 2. Capture what is being supplied to the buyer •A spare key. •Service history of the vehicle. •Any additional extras such as mats or trim. •Any modifications to the vehicle. •Capture the point-of-sale mileage accurately and get the customer to sign to acknowledge that the mileage is correct. 3. Keep copies of vehicle adverts •Keep any adverts that you’ve used to sell the vehicle – these show how the vehicle was presented to the customer. •Ask the customer to sign adverts that highlighted key information about the vehicle. •Insurance write-offs, known manufacturer faults and vehicles that have a rental history should always be declared to customers prior to sale. Ask the customer to sign acceptance if this is the case. 4. Keep records •If you carry out work on a vehicle, you should keep all receipts and evidence. •Keep a record of the HPI check. •If a health check is carried out, keep records (for as long as you feel necessary) and any job sheets that show any repairs carried out prior to sale. •If you check for manufacturer faults prior to sale, keep records of the checks. 5. Seek customer feedback •While the customer is waiting for the vehicle to be prepped, ask them to give you a review online. •If you do receive a negative review, respond publicly. This will reassure other potential customers that you take all complaints seriously.

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, motorcycles, caravans and motorhomes. Go to closemotorfinance.co.uk to find out more. CarDealerMag.co.uk | 91

Data file.

James Litton

TRADER TALES

We need to think now about sustainability for the future

ou may have seen NFDA director Sue Robinson lambasting a recent KPMG automotive retail survey. She attacked the lack of sourcing involved in producing the headline statistic that between 30 and 50 per cent of franchised motor retailers could be gone by 2025. Robinson was correct to draw attention to the tiny sample size used to generate the figure, and it is worth noting that a number of heavyweight motor retail CEOs took to social media to add support to her criticism. However, the question remains – is 50 per cent really too high an estimate? Think about the variables underpinning the number of franchised dealers we have in this country: l Retail trends. Online shopping has increased fourfold in the past four years, and while nobody doubts the need for many consumers to physically engage with such a costly purchase as a car, the simple capital cost of impressive retail facilities combined with more focus on experiential outlets means network coverage at current levels is unsustainable. l Too many brands. ‘One of my brands has essentially given up in the UK,’ is what one director of a multi-franchise group told me recently. What truly differentiates a Seat or a Peugeot from a Ford or a Hyundai? The marketeers would point to some nuances, the engineers may highlight certain features, but many brands are homogenous clones of each other with little differentiation, and this is not sustainable. l Disruptors. I am not even talking about Tesla or one of the many expected Chinese electric vehicle start-ups. I mean the oft-predicted trends related to car usage and ownership. If companies such as Uber or Lyft really start to take hold, especially in cities with high densities of retail dealers, it is highly likely there will be casualties. l Profitability. Dealer groups that achieve anywhere from a two to four per cent return on sales are lauded in our industry, but these figures would be laughable in many other sectors. During my two decades in the motor trade, profitability trends have pushed downward with little hope of recovery. As retailers search continually for scale, smaller operators could be marginalised. l The B word. I just cannot write about the topic of Brexit any more, but suffice to say it is a factor. It is interesting that KPMG used 2025 as the year by which it was asking respondents to guess future trends. I didn’t study at the LSE, but this is just six years away. What is clear is that decisions need to be made by manufacturers and dealers alike about what sustainable, profitable business models look like – and that needs to start now.

‘Online shopping has increased fourfold in the past four years.’

James Litton is general manager – director of Volvo Cars Poole. He always has something to say about the industry he loves. 92 | CarDealerMag.co.uk

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The fishy prank we played that caused a bit of a stink

s I’m sure is the case at many dealerships, the management at a showroom I worked at back in the ’90s provided us with a kitchenette-type area for the preparation of lunchtime snacks, hot drinks, etc. It was quite a nice facility, to be fair, and kept in reasonably hygienic condition by the cleaners, who visited every other evening, and not abused too much by my colleagues and myself. There was one problem, however. One salesman on the team, Bill (not his real name), insisted on having the smelliest ready meals every day and stank the whole place out as he warmed them up in the microwave. Fish pies, curries and spicy soups were the order of the day and the pungent pongs really started to get up our noses – literally. (I should add that customers to the dealership weren’t affected as we had a little staff room just next to the kitchen. The management weren’t keen on us dining ‘al desko’ as they thought it was unprofessional.) Anyway, back to Bill and his foul-smelling food. Things were going from bad to worse as he developed a fondness for anything with onion and garlic in it. How could we stop him being so anti-social? The answer came one sunny afternoon when he returned from a lunchtime trip to the supermarket. He hadn’t been topping up his stocks of ready meals for consumption at work, however – he’d been buying the ingredients for a fish pie he was planning to make at home. After putting the various bits of pollock, cod and so on in the fridge to keep cool for the afternoon, he nipped off to wash his hands. That’s when we struck. A couple of colleagues and myself pinched a few prawns and a piece of halibut from his shopping bag and, wrapping them in a bit of kitchen paper, popped them into the bottom corner of one of his desk drawers. That afternoon, he was none the wiser as the fish was still pretty chilled and non-smelly... but a couple of days later it was a very different story! Bill did discover our prank pretty quickly as the fish started to smell, which was just as well as his desk was in the middle of the dealership and we wouldn’t have wanted customers to have been put off by any nasty niffs. But he did seem to get the message... and the curries, fish pies and stinky soups soon became a distant (and rather unpleasant) memory...

‘We pinched a few prawns and a piece of halibut from his shopping bag.’

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Key Notes.

...in association with Traka

Investigation puts some broker commission models in the dock Paul Smith looks at the changes that might be under way after latest motor finance report from the FCA.

ersonal Contract Purchases (PCPs) provided the finance for some 82 per cent of new car sales in the UK in 2017. These loans definitely supported a six-year long new car sales boom right through to Q2 2017, around about the time that the FCA began to take a closer look at how this finance was being sold. Early investigations by the FCA, detailed in its interim report on motor finance, published back in March 2018, flagged up some worries associated with some of the commission arrangements which the regulator thought may be incentivising brokers to arrange PCP finance at higher interest rates. However, the findings in the FCA’s final report, published right at the beginning of March 2019, are much more categorical. To summarise: ‘We found that Increasing DiC and Reducing DiC commission arrangements can provide incentives to brokers to arrange finance at higher interest rates. This is because the amount of commission increases with the interest rate that the consumer is charged.’ The two structures firmly now in the dock are the Increasing Difference in Charges (Increasing DiC) and the prevalent Reducing Difference in Charges (Reducing DiC) structure. In both these arrangements, the broker has the discretion to set the interest rate payable by the customer, within parameters set by the lender. The FCA analysed the prevalence of the use of these commission models and found 95 per cent of franchise dealers, independent dealers and online brokers were using one or other of these arrangements. They even probed the tightness of the link between broker earnings and higher interest rates that customers were paying. The DiC models showed a very tight link

between the two – suggesting that dealer brokers are effectively being incentivised to charge customers more than lenders set (as the base line interest rates) to access higher commissions. The report states pointedly: ‘It is not clear to us why brokers should have such wide discretion to set interest rates or adjust the rate to – in effect – pay themselves more commission.’ Whoops! The regulator is now placing an increased onus on lenders to show that any differences in commission levels given to brokers are based on extra work required in writing the business. It’s asking lenders to review their systems and controls in the light of these findings. Looking further into sales practices in dealerships, a regulator-commissioned mystery shopping exercise found just over a quarter of them (28 per cent) explained the total amount that would be payable within the life of the PCP arrangement; the principal consequences arising from failure to make payments under the agreement; and the effect of withdrawing from the agreement mid-stream. There was also very poor disclosure of the fact that broker commission may be received for arranging the finance. A bit of sales training and document improvement work is clearly needed here.

Neil Watkiss, head of consumer credit at the F&I platform DealTrak, added: ‘The FCA also implies that lenders are more invested in their own credit risk than assessing the affordability of the loan for the customer, when of course dealers and brokers have a significant role to play when it comes to establishing affordability.’ As a next step, the FCA is considering tightening its CONC (Consumer Credit Sourcebook) conduct of business rules. They may even ban Increasing and Reducing DiC arrangements altogether. There is genuine criticism levelled at lenders here for failing to monitor disclosure to customers of ‘status and remuneration’. They conclude that DiC arrangements are ‘leading to poor outcomes for a significant number of consumers and that lenders are not mitigating the risks sufficiently’. If you want to put numbers on the potential consumer detriment here, the FCA estimated that on a typical motor finance agreement of £10,000, higher broker commission can result in a customer paying around £1,100 more in interest charges over a four-year term of an agreement. The current commission arrangements were incentivising consumers to be over-charged to the tune of £300m a year, according to the regulator’s estimates. Naturally these estimates made for some fairly lurid headlines in the national media earlier this month. So, what now? Certainly, changes are afoot. We may even see the FCA ban commissions and sales incentives associated with car loans altogether. Treating the customer fairly is the FCA’s key mantra and it appears that it has identified one aspect of PCP selling which is not always in the best interests of some borrowers.

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 94 | CarDealerMag.co.uk traka-auto 1-6pg.indd 1

15/12/2016 09:56

Long-termers. LATEST FROM THE FLEET...

Isuzu D-Max AT35 It’s big, brash and ready for anything. This addition to our fleet is certainly turning a few heads... by JACK EVANS @jackrober

ick-ups are blessed with an enormous amount of road presence. It’s difficult to miss a more-than-two-tonne truck in your rear-view mirror, even if it’s just a standard model. But what if a ‘regular’ truck isn’t nearly in-yourface enough? Well, that’s where the Isuzu D-Max AT35 comes in. And as it happens, we’re running one as a long-term member of the Car Dealer Magazine fleet. The Isuzu D-Max has always occupied the rustic, utilitarian end of the pick-up segment. Though other models like the Mercedes X-Class and Volkswagen Amarok have planted themselves firmly in the luxury section of the market, the humble D-Max has always been there as a reliable and rugged option instead. But to make our D-Max stand out a little bit more, Isuzu gave it to Arctic Trucks (that’s where the AT in the truck’s name comes from) – a company that specialises in creating mad-hat and go-anywhere versions of conventional trucks. And as you can see, the effect is pretty striking. The D-Max sits on 35-inch Nokian Rotiiva tyres (again, contributing to this D-Max’s name), and this immediately gives the look of the Isuzu a serious kick. It’s backed by widened arches and a significant bump in ride height – up 125mm on a conventional D-Max, in fact, thanks to a combination of suspension and that larger-thanlife rubber. And if you know your mountain bikes, you’ll be aware of Fox, which manufactured the AT35’s specialist suspension. It’s all done to make the D-Max as capable as possible off road. But more than anything, it just makes the truck look really, really cool. And it works, too. The AT35 is unflappable on the rough stuff (during our brief time on it) and it’ll happily conquer bumps and mounds without the merest flutter of complaint. The 1.9-litre diesel engine under the bonnet has a touch of the agricultural about it (it does make a fair grumble when cold), but when it’s warm it provides plenty of shove – the 360Nm of torque on tap meaning you’re rarely without punch.

BN68 ZNE is a pick-up with the wow factor – and the light bars on the top are super-powerful

THE KNOWLEDGE Model: Price: Engine: Power: Torque: Max speed: 0-60mph: MPG: CO2 emissions: Mileage:

Isuzu D-Max AT35 £45,535 (£37,995 EX VAT) 1.9-litre turbocharged diesel 162bhp 360Nm 112mph 15 seconds 36.2 205 4,161

THIS MONTH’S HIGHLIGHT: Enjoying the admiring glances as our über-cool pick-up truck settles into the fleet. Are there any drawbacks to all this off-road readiness? Well, as is the case with most pick-ups, the use of a traditional ladder chassis (which provides one of the strongest platforms for offroaders) does mean that the ride isn’t the most refined. Those large, knobbly tyres create a bit of a din when travelling at speed, too. Because the D-Max is set up to deal with heavy loads in the rear bed – the Isuzu is rated to carry 1,126kg – it does bob about a fair amount when there isn’t anything in there, but we’ve often found a few bags of cement or plenty of gravel the solution to this problem. Then there’s the sheer size of the thing. It measures close to 2.2 metres wide thanks to wheel arch extensions, which means that getting it down country lanes or through gaps in traffic takes a lot of effort. It’s actually 310mm wider than the regular D-Max, which isn’t the smallest of vehicles in the first place. Parking is another issue – we’re often left having to park a long way from a supermarket in order to find a space in the car park. Interior-wise, there’s lots of space for those

sitting up front and in the back, and you get plenty of USB charging points for various devices. The trim quality leaves a bit to be desired, however. The heavy use of flimsy plastics brings down the overall feel of the cabin, and it’s the same story with the Pioneer infotainment system – it’s not intuitive to use or clear to look at. Economy-wise, the AT35 should return 36.2mpg, and we’ve been seeing just over the 30mpg mark – so this claimed figure should be easy to achieve on a longer run. Emissions of 205g of CO2 per kilometre are heavy but pretty much par for the course in this segment. Of course, you could opt for a lower-spec D-Max to get better economy figures, but then you’d lose the stand-out looks of the AT35. And we’d struggle not to mention one of the best features of the AT35 – the light bars fixed to the top of the truck. Impressively powerful (including 27 LEDs), they appear bright enough to light up several miles in front of you. Our time in the AT35 actually kicks off a trip through the entire D-Max line-up. Over the coming months, we’ll be seeing what Isuzu’s famous pick-up is like through its various trims and specifications. So stay tuned to find out more about the range. CarDealerMag.co.uk | 95

Long-termers. LATEST FROM THE FLEET...

Kia Ceed SW The roomy estate has practicality on its side, as Ted discovers on a trip from the south to Yorkshire. by TED WELFORD @TedWelford

state cars are awesome. Not only do they often look so much better than the models they’re based on, their huge boots are incredibly useful. Our long-term Ceed Sportswagon is a perfect example of this, as it successfully transforms the Kia from an average-sized hatchback into something classy-looking with genuine usability. And yes, I’d like to point out that I am a bit biased given my own steed is an estate car. My poor Seat Ibiza ST gets some abuse, too, having to carry a boot-load of valeting supplies for my weekend job, as well as completing an unhealthy number of trips to Yorkshire to visit family and get some welcome cash for valeting friends’ cars. But back to the Ceed. It’s been a popular member of our fleet for a couple of months now and I was able to use LD68 HKN for a flying trip to Yorkshire recently. On the 280-mile slog from the south coast to God’s own country, comfort and fuel economy are key. The Ceed puts a huge tick in the comfort box, delivering a relaxed ride – although the car’s fuel economy was a touch underwhelming. Given my Ibiza’s 1.6-litre diesel engine claims over 60mpg on the same trip (or so it tells me), it seemed like a backwards step when I struggled to see anything over 55mpg on the run in the Kia. It’s by no means thirsty, but I expected to see nearer the quoted 67.3mpg figure. The economy probably isn’t helped by our car’s seven-speed dual-clutch automatic transmission, which has a tendency to hold on to gears for longer than it should, but on journeys like this, the auto is the choice to have over the six-speed manual box. But enough moaning – back to how it looks. As mentioned earlier, the Ceed hatchback is one of the more mundane-looking cars on sale, but giving the Sportswagon that swoopy back end makes a heap of difference, while the glossy grey 17-inch alloy wheels and projector headlights also look the part. Bravo, Kia. The trip to Yorkshire was also a good way to test the Ceed’s impressively sized 600-litre boot. My valeting clobber is extensive and includes a pressure washer, many, many cloths, a hose, machine polisher and then – of course – all the cleaning products. Having something with a boot 96 | CarDealerMag.co.uk

This particular member of the fleet is a classy-looking car with genuine usability, says Ted

THE KNOWLEDGE Model as tested: Kia Ceed SW 1.6 CRDi DCT 3 Price: £24,605 Engine: 1.6-litre four-cylinder diesel Power: 114bhp Torque: 280Nm Max speed: 119mph 0-60mph: 10.3 seconds MPG: 67.3mpg CO2 emissions: 108g/km Mileage: 5,880 THIS MONTH’S HIGHLIGHT: A trip to God’s own country in a good-looking estate car with ample room for five adults. as generously sized as that found in the Ceed Sportwagon certainly comes in useful. My visit also seemed even more perfectly timed, considering Dad had drafted me into taxi duties on a company night out, which gave me the chance to see how easy it is to fit five adults in the Ceed – and four quite merry ones at that. There were no complaints at all where headroom and legroom were concerned, even from those sitting behind two six-foot adults. With my parents living in quite a hilly part of the world between York and Scarborough, a bit of a kick from the Ceed’s 280Nm of torque to get up some of the steeper hills in the Wolds came in handy – particularly with five adults on board. Sunday involved another day of valeting (the Ceed itself got a clean, too) and then it was time to tackle the 280-mile journey back to the sunny south. For commuting up and down the country with a load of gear, I can think of few better cars for doing it this side of £30,000, and with our example coming in at £24,605 for a well-specced ‘3’ model with plenty of toys, it’s fantastic value for money.

OTHER CARS WE’RE DRIVING

Seat Ibiza FR Mileage: 4,052 A wash and brush-up for KY68 ZXK – and the sporty little Ibiza is looking as good as new. We’ve just passed the 4,000-mile barrier with very little (if anything) negative to report so far.

Skoda Fabia Monte Carlo It’s time for the fogged-up headlight on our supermini to be sorted – but did everything go smoothly? by RYAN HIRONS @RyHirons

hen Skoda decided it was time to give the Fabia a little nip and tuck last year, its headline feature was the new LED headlights. These units give the car a more upmarket look and make visibility at night much, much better. For KY68 WXB though, it’s these new units that brought a problem. A few weeks after we took delivery, I began to notice a small amount of condensation building in the offside headlight. Not a real problem, I thought – it may even go away on its own. But as time went on, it only got worse – eventually encompassing the entire plastic casing. While not really the end of the world, it did make the car look a little bit rubbish. A chat with Skoda’s lovely public relations team later, though, and the Fabia was lined up for a repair job at a dealer local to our HQ in Gosport, Hampshire — Sparshatts Skoda in Fareham. I admittedly hadn’t thought a whole lot about the build-up until this point, but it suddenly became a bit more of a concern once I’d spoken to one of the team at the dealership while working out a date for the repair. ‘Yeah, we haven’t actually got the part in stock at the moment and it’s going to be at least three weeks before it arrives. There’s a backlog from the factory,’ he told me. This must be a much wider

There was a bit of a wait to have the condensation issue dealt with – but everything is now sorted

issue than I’d expected, in that case. That, or Skoda’s selling so many Fabias that demand can’t be kept up with. A fair wait it was then, but this wasn’t so much of an issue considering it was a repair job born largely out of my own nit-picking ways. Anyway, the day came to hand the car to Sparshatts and things got off to a good start. With the Fabia parked pretty much at the front door at around 8.30am on a Monday, it was a simple case of handing over the keys and then accepting a

complimentary lift to the office – so I didn’t even have to alter my normal routine. Just as simple as dropping it off, I had a call about lunchtime that day saying the job had been done and the dealer’s driver was available to come and pick me up whenever I was ready. I was duly chauffeured to Sparshatts, where I took the keys back and was told the work was all covered under warranty. The Fabia had even been cleaned, too. All in all, a very pleasant dealership experience, and it’s the kind of thing that if I were a customer would make me want to do business with them when it came to my next car. With the offside headlight now replaced with a condensation-free unit (which hopefully stays that way), it’s business as usual with KY68 WXB. It’s served me well as a commuting companion with zero complaints — although a fair few motorway trips are still leaving me wishful that whoever ordered the car had ticked the £185 box for cruise control. At a listed £4.24 extra a month on top of your finance package, if you’re ordering a Fabia it’s a must-have in my view.

THE KNOWLEDGE

Mercedes X350d

Peugeot 3008

Mileage: 1,408

Mileage: 7,469

Back before Christmas, a bare-bones, full utilityspec Mercedes X-Class pick-up arrived. But now that has gone, to be replaced by this rangetopping V6 variant. Full report next issue.

A succession of long motorway runs has reminded us where our Peugeot 3008 excels. Its long gearing, superb refinement and soft suspension make the miles melt away.

Model: Price: Engine: Power: Torque: Max speed: 0-60mph: MPG (combined): CO2 emissions: Mileage:

Skoda Fabia Monte Carlo £20,065 1.0-litre three-cylinder turbocharged petrol 94bhp 160Nm 114mph 10.6 seconds 61.4 106g/km 5,286

THIS MONTH’S HIGHLIGHT: A pleasant and easy dealership experience with Sparshatts Skoda. CarDealerMag.co.uk | 97

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

Where next for new car sales? The finger is pointing at the internet

t’s a question I get asked by dealers, manufacturers and casual observers all the time: What will buying a car be like in the future? Sounds like a simple question, but it’s one that I find hard to answer – mostly because those asking don’t like what I have to say. Let’s start with the car that people will be buying. Let’s face it, it’s going to be electric. Out at the Geneva show, every manufacturer and his dog launched a new EV – from the fastest ever to EVs for the people, each stand had a different vision, but pretty much all had some electric trickery to power them. Before the masses can adopt them, charging them needs to be sorted out. I want to be able to charge my car everywhere I go – and I don’t really want to have to haul a cable out of the boot and have to plug it in. If I can stick my phone down on a pad on my desk and wirelessly charge it, why can’t I park a car in any car park and top it up? I don’t mind paying for the privilege – and I’m sure many others wouldn’t either. I just want it to be full of electricity whenever I get in it. Imagine if every car parking space, from Tesco to service stations, offered a wireless charging pad that topped your car up when you parked on it. You’d never have to worry about range anxiety, would you? That’s the thing with electric cars that bothers me. No one has really thought through the charging infrastructure in any detail. OK, no one apart from Tesla, and they’re too busy firing cars into space than actually delivering those that people have ordered to be taken seriously. Like I said, out in Geneva, EVs were everywhere, yet every manufacturer boss I spoke to that only a few moments before had ripped a cover off their electric offering couldn’t give me a solution to the charging problem. People will only buy EVs when they know they can charge them easily, and that includes if they live in a flat or a terraced house with no off-street parking. The public charging points in the UK are rubbish. They’re unreliable, poorly distributed, and to make matters worse, when you turn up at one with six miles of range left, there’s no way of knowing if there’ll be a queue of other empty EVs in front of you waiting for their 45 minutes of top-up time. Sounds like scaremongering, doesn’t it, but

I’ve been there, sitting waiting for two hours while two other electric cars charged up before me – and that was before any of the mainstream manufacturers launched their offerings. OK, I’ve gone off topic. The point of this column was to give you my thoughts on buying cars in the future. But the type of car people will be buying is intrinsically linked to how they’ll be sold. EV buyers are tech-savvy and they’re also price-sensitive, as they’re used to getting the best deal online. That’s not to say they want the cheapest. Apple iPhones aren’t exactly the cheapest smartphone option, but they’re arguably the best and can easily be purchased online. I strongly believe that car buyers will soon become so time-poor and so used to shopping online that the idea of driving to an out-of-town dealership, where they assume they’ll be pounced on by a commission-hungry salesperson, will be second only to injections in the eyeballs as to what they’d want to do with their Saturday morning. These people are already researching their new cars online. They’re watching countless videos, reading reviews and getting advice on social media and forums. What they want next – what I want next – is to be able to complete that circle online. I want to choose, spec, finance and order my next car online. I want to know I’ve got the right price for it – and if I’m buying directly from a manufacturer (such as Apple) and know the price I’m quoted is the price I’ll pay, then I’ll be happy. I don’t haggle for my iPhone, TV, sofa or bed that I buy online – the price I see is the price I pay – so when consumers can trust the manufacturer to be quoting one price, they’ll pay it. They’ll then want it delivered to their door, perhaps for a test drive, and then if they like it they’ll keep it. Where do dealers fit into that? I’m not quite sure they do. There’ll always be a place for them in the used market, where cars are different, but I can only see new car sales drifting further away from traditional dealerships to where customers want to buy. And if manufacturers can fix their prices and not give a margin away to a third-party intermediary, do you not think they’ll grab that with both hands? Controversial, I know, but the signs are there.

‘I want to choose, spec, finance and order my next car online.’

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. 98 | CarDealerMag.co.uk

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