BIG MIKE: WHY I’LL NEVER BE A FAN OF ELECTRIC CARS (OR THEIR DRIVERS)
E G R A L & LITTLE Issue 134 | May 2019 | CarDealerMag.co.uk | £5
H A DIFFERENCE – WE TAKE A ROAD TRIP WIT ATED DEALERS TR AND MEET SOME VERY FRUS
WHY YOU HAVE TO BE AT CDX 2019
Don’t miss out – register now for your free ticket to CDX 2019 at cardealerexpo.co.uk
Farnborough International, Wednesday, June 12, 2019
Workshop sessions CDX 2019 will be hosting 13 bestpractice workshops and they’re not to be missed! They’ll have practical advice that you can apply immediately, and every workshop will include a dealer case study.
Top tips to win with paid search
Finance in the headlights
How to be ready for the customer of the future
Stock in the digital age
CarGurus will explain how your dealership can effectively use paid search to improve sales and return on investment.
The role of regulation when creating a good customer outcome. Join Helen Foxworthy and Marc Jones to discover how close partnerships with your finance provider could be key.
Oliver Parsons and Gordon Grant will explain how technology will change buying habits and how you can prepare for the next generation of customers.
Remarketing is moving into a digital age, and in this workshop Manheim will explain how you can maximise your return and reduce the number of days to sell by using the latest technology.
Three digital marketing tricks that really deliver
The art of the deal through social media
How law changes after Brexit will affect you
End-to-end online retailing is the next step
Turning trends in data to your advantage
In this session, Tanesha Stafford will reveal how a powerful, results-driven online strategy can positively boost your offline sales.
Aiden White will detail how Facebook can ensure that a dealer’s local marketing activity targets the right customers at the right time.
As changes to the law following Brexit are of major concern, Nona Bowkis will explain and clarify exactly what you need to be aware of.
Paul Stokes will explain why offering customers a complete car purchase transaction on your website is a great opportunity.
Paul Boocock and Rebecca Boocock will show you how you can find trends within your data, start to model predictions of user behaviour and use this insight to drive improvements to your online car sales.
Tackling the threat of cyber crime
Make your dealership a top place to work at
Emails and phone calls are dead
What’s the point of a car showroom?
Cyber security expert Johnty Mongan will highlight the essentials you need to know to keep your business protected – both in terms of its finances and its reputation.
Fiona Cottle will explain why a robust people strategy should be at the core of any successful dealership and how to implement one in your business.
Find out the new ways your customers want to hear from you. Global tech firm LivePerson will explain how communicating where your customers are already shopping could be the easiest way to sell more cars.
Rob Purfield – the go-to profit consultant for the motoring sector – will discuss the shifting face of automotive retail, salesroom behaviours, how to differentiate yourself – and more.
Live Stage line-up Sponsored by
THE Car Dealer Live Stage is back for CDX 2019 and will be bringing you exclusive insights and views from top speakers in the industry. We’ve got incredible information to unpack, so don’t miss it!
Armchair Marketing
Plus: Don’t miss all these as well...
What they say about CDX
Business Hub
Dealership of the Future
Dealers’ Den
Bangers4Ben 2019
This is a quiet area where you and customers or potential business partners can hold meetings.
Stay ahead of the curve by finding out how showrooms could be operating in the years ahead.
Top products from new firms or start-ups will be pitched for the chance of an amazing prize.
In association with
In association with
In association with
There’s a French flavour to this year’s road trip in support of motor trade charity Ben. Be among the first to sign up. Places will be snapped up fast, so hurry!
In association with
#CDX19
fb.com/CarDealerExpo
‘Hear from real people about how they’re dealing with difficult situations in the industry.’ JCT600 chief executive John Tordoff
@CarDealerExpo
CDX and all related content and sessions are subject to change or cancellation at any time up to and including the event day.
Dealer panel
Manufacturer panel
With new car sales facing some of the hardest times in recent history, we speak with chief executives of Marshall Motor Group Daksh Gupta, JCT600 John Tordoff and Wayland Automotive John O’Hanlon about the state of the market and their advice for the future.
We speak with manufacturer bosses Karl Howkins of Citroen, Rob Lindley of Mitsubishi, Stephen Norman of Vauxhall and William Brown of Isuzu about their predictions for the future of car retail.
Getting to CDX 2019
Farnborough is conveniently located south-west of London and served by strong national and international travel links.
By road M40 Reading
What targeting 1.5 billion keywords taught us
The customer of the future
CarGurus will reveal its data about how consumers are searching for cars online. It will be sharing exclusive insights into how this can be used at your dealership.
CitNOW’s exclusive data will reveal how technology is shaping car buying and how its progress is set to change consumer habits further.
Farnborough
London
M4
Waterloo
M3 M25
Basingstoke
Bridging the physical to digital gap in purchasing
What’s ahead for the car market
We’ll explore how the car-purchasing journey must shift to meet consumers’ omni-channel expectations, delving into the evolving nature of car-buying behaviour to understand how dealers will need to reshape their approach.
Cox Automotive will provide in-depth market analysis of current trends, predicting their impact on the industry.
M26
Gatwick Crawley
Farnborough International Exhibition & Conference Centre is just off the A325, accessible from the M3 (J4) and A31. Please follow signs for event car parking. There’s space for up to 3,500 cars, and parking is free.
By rail
Farnborough International Exhibition & Conference Centre is within easy reach of four stations: Farnborough Main, Farnborough North, North Camp and Aldershot.
By air
Both Heathrow and Gatwick are within easy reach of the centre, while the privately run Farnborough Airport – one of Europe’s leading business airports – is next to the venue.
‘Hear first-hand experiences from people you don’t usually have access to.’
‘We do a lot of business here and build a lot of great relationships.’
Mercedes-Benz Warrington general manager Rebecca Sides
What Car? managing director Rachael Prasher
Expo
The businesses to do business with SEE DETAILS ON PAGE 17
Register for your FREE ticket at cardealerexpo.co.uk
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Welcome.
THE countdown is now under way – as you might have spotted from the XXL front cover on this issue – and we are less than two months away from CDX 2019. This year the event will be coming to you from the fantastic Farnborough International Exhibition & Conference Centre and hopefully you’ll have a chance to peruse some of the content that’ll be happening on the day in our extendable cover. If you need even more reasons to take a valuable day out of your business and expand your understanding of the industry, on pages 16 and 17 we’ve got details of who else you can meet there. At CDX we’ll be highlighting just how much is changing for dealers and the industry – one of the main reasons we think it’s so important to stage the event to bring everyone together. Crucially there are some huge new chunks of legislation that are affecting motoring. Most recently we’ve seen changes to car tax once again, and now we also have the Ultra Low Emission Zone in London. We’re also seeing cars themselves changing, and reports of more consumers shifting into electric vehicles. This can have huge implications for franchised dealers, who have no choice but to follow manufacturer guidelines, and used car dealers are involved as stock profiles take on a new look. I’ve had a lot of interesting conversations this month with businesses who are using data in smarter ways. It’s fascinating as we delve into the emerging technologies that have clearly been developed over many years, but there are challenges for dealerships to adopt and even understand all of the possibilities and potential. I’m excited to say that a lot of new technology will be on display at our CDX event, giving you the chance to get up close with it, understand how it works and discuss it with the businesses who have developed it on the day.
For the first time we’ll be bringing the Dealership of the Future to CDX, where we’ll be showcasing some of the latest technologies that you could be using in your own business very soon. Those who come to CDX will also be able to take advantage of our Business Hub and Dealers’ Den for the first time – read more about Dealers’ Den on p16! Away from our CDX planning, Ted has been looking at how the traditional face of dealerships is changing and how diverse some sites have become to cope with growing overheads or just keep customers happy. Dave and I have been taking a look at two very different brands and how they are finding success in this economically challenging time – Suzuki and Lamborghini. Yes, they don’t really come more different than those two but they’ve both got very interesting new SUVs on the market and sales are soaring. You can find out who enjoyed their road trip to visit some dealers the most a bit later on in the mag – Dave in the Jimny or me in the Urus? There are two new car road tests to enjoy this month too – we’ve driven the Skoda Scala and Honda HR-V Sport. We’ve also got the final instalment of the Car Dealer Magazine Go-Karting Challenge held in association with Close Brothers Motor Finance – an addition to the magazine that will be deeply missed and hopefully we can bring back in the future! That’s all from me for now but, if you haven’t done so yet, make sure you head to cardealerexpo.co.uk to register for your free CDX tickets today. Enjoy the issue!
Rebecca Chaplin Head of Editorial CarDealerMag.co.uk | 05
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Join Car Dealer Club by visiting CarDealerClub.com Members get free legal advice worth £195 for a £49.99 subscription
Driven: Skoda Scala Can new hatchback from Czech brand take the fight to the Ford Focus and Kia Ceed?
Will dealers suffer from the effects of London’s ULEZ?
ISSUE 134 I MAY 2019
Dashboard. The Big Story Around the UK CDX 2019 Nissan goes digital in Paris Car Dealer Power 2019 Rebecca Chaplin Big Mike Feedback Around the World Finance
8 12 16 24 26 31 33 34 36 38
Features. Lamborghini and Suzuki road trip Off-roading with SUVs
Data File. The Statistics Fully Loaded Aftermarket Car Dealer Club Auctions Taking Stock Market Insight
Forecourt. Skoda Scala Honda HR-V Sport
42 44
Suppliers Guide Long-termers James Baggott
46 52 62 64 68 70 72 73 74 84 87 90
Racers take to the track in grand final of go-kart challenge
‘Something fun and interesting from Honda’
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 p26.
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 16-17. CarDealerMag.co.uk | 07
Dashboard. SMMT
Another fall in car production
CAR production has fallen for the ninth month in a row amid declining demand in the UK and abroad, new figures reveal. The Society of Motor Manufacturers and Traders said the continued reduction should act as a wake-up call to anyone who believes the industry could survive a no-deal Brexit without ‘serious damage’. Around 123,200 cars were built in February – down by 15.3 per cent on the same month last year. Mike Hawes, SMMT chief executive, said: ‘The ninth month of decline should be a wake-up call for anyone who thinks this industry, already challenged by international trade hostilities, declining markets and technological disruption, could survive a no-deal Brexit without serious damage. ‘A managed no-deal is a fantasy. Uncertainty has already paralysed investment, cost jobs and damaged our global reputation.’
HYBRID CAR
Joint venture in Derbyshire TOYOTA is joining forces with Suzuki to build a hybrid car for the fellow Japanese brand at its factory in Derbyshire. It will be based on the Toyota Corolla and will feature engines built in Deeside with electrical components from Japan. There won’t be any new jobs or investment, but the move will increase job security for factory workers. 08 | CarDealerMag.co.uk
THE BIG STORY
In the zone... but will anyone suffer as air quality improves? London’s new Ultra Low Emission Zone is now in force – and could mean higher operating costs for dealerships, reports Rebecca Chaplin.
L
ondon has introduced one of the world’s toughest vehicle emissions standards. Drivers of older, morepolluting cars face paying a new £12.50 fee to enter the centre of the capital after the Ultra Low Emission Zone (ULEZ) was introduced on April 8, replacing the T-Charge. Diesel cars must be less than roughly four years old to avoid the charge, while petrol cars must be less than about 13 years old. London mayor Sadiq Khan said the scheme was being brought in because thousands of Londoners were dying early every year as a result of toxic air, with an increased risk of cancer, asthma, dementia and stroke. He claimed the ULEZ would ‘help clean our air and reduce
harmful road transport emissions’. It currently covers the same area as the congestion charge zone, but will be extended to the whole of inner London (within the North and South Circular Roads) from October 25, 2021. Charges apply at all times and are on top of the congestion charge, which is £11.50 between 7am and 6pm on weekdays and doesn’t operate on public holidays or between Christmas Day and New Year’s Day inclusive. All vehicle types apart from black taxis are liable for the ULEZ charge unless they meet certain
emissions standards or exemptions and non-compliant lorries, buses and face a £100 daily fee. It is estimated that 100,000 cars, 35,000 vans and 3,000 lorries may be affected every day once the zone is expanded. There have been concerns that poorer motorists, small businesses and charities will be unfairly hit by the charge as they might not be able to afford to upgrade their vehicles. Eddie Curzon, London director of the CBI, described the ULEZ as a ‘really positive step’ but warned that ‘smaller firms can struggle to afford
‘We’re not seeing any customers buying in response to the ULEZ.’ Nigel McMinn, chief operating officer of Lookers
Epic Thames Waterbike Ride is this year’s Ben challenge THREE UK automotive industry leaders will be cycling on water for charity – tackling the River Thames from source to sea. The Epic Thames Waterbike Ride is this year’s Industry Leader Challenge (ILC) in aid of Ben – the independent charity for the automotive industry. The feat of endurance will see Volvo Car UK managing director Jon Wakefield, Allianz Partners UK & Ireland chief executive Tim Tozer and Group 1 Automotive managing director Darren Guiver pedal the 166-mile route on waterbikes, with a fundraising target of £300,000 to
support industry employees going through tough times. They will be cycling on water alongside boats and through a total of 45 locks. The trio took on the baton for ILC 2019 from Andy Bruce, chief executive of Lookers, whose 2018 challenge – the Lookers Electric Charge – raised £215,755 for Ben. The men will take on the course of the river from July 4 to 7, starting at Thames Head near Kemble, Gloucestershire, and ending at the mouth of the North Sea, making it an incredible test of physical and mental endurance from start to finish.
Wakefield said: ‘The work Ben does to support those who need it across our hugely varied industry is invaluable, so I’m honoured to be joining Darren and Tim in the 2019 Industry Leader Challenge.’ Matt Wigginton, business development director at Ben, added: ‘We’re beyond excited about this incredible challenge and we’re delighted that Jon, Tim and Darren are fundraising for us in such an epic way. Cycling on water on one of the busiest rivers in England is certainly no mean feat! We wish our 2019 industry leader trio the best of luck.’
Have you taken part in our great survey yet?
Car Dealer Power, p26
Understanding ULEZ Where is the zone? Initially, the ULEZ will apply to the same area as the London congestion charge, ie, inside the Inner London Ring Road. When does it operate? The ULEZ zone operates 24 hours a day, seven days a week, every day of the year. This is in contrast to the congestion charging zone, which only operates from 7am to 6pm on weekdays and doesn’t operate on public holidays or between Christmas Day and New Year’s Day inclusive. Which cars have to pay? Older, more-polluting cars will be hit. To be exempt from the charge, petrol cars, vans and minibuses must meet Euro 4 emissions standards, while the switch to low-emission vehicles’. Despite talk of encouraging car owners to switch to cleaner cars and the huge numbers it will affect, Lookers – whose Battersea dealership serves many car owners inside the current ULEZ and will sit within the 2021 zone when it’s introduced – has yet to see customers respond to the new charge. ‘We’re not seeing any customers buying in response to the ULEZ,’ said chief operating officer Nigel McMinn. ‘The theory should be that customers anticipate what’s coming and start to change into vehicles that will avoid the charge. While our London businesses are doing well, they also include Jaguar Land Rover, who don’t have yet, other than the I-Pace, a particularly big range of vehicles that could help mitigate that ULEZ charge.
NEW SIGNINGS
RAC network’s major milestone THE RAC Dealer Network has passed the 1,400-member mark with a trio of new signings. Rainworth Garage of Mansfield, Voy Trade Centre of Oldham and YCP of Leeds and York have all joined the quality used car initiative. Assurant, which partners with the RAC in the warranty sector in the UK, aims to reach 1,550 members here in 2019.
diesels will have to comply with more recent Euro 6 levels. Motorbikes must be Euro 3 classification or later. What will it cost me to drive in the zone? The fee is £12.50 a day for passenger cars – on top of the £11.50 for the congestion charging zone. What are the penalties? If you don’t pay the ULEZ fee you’ll face a penalty of £160, reduced to £80 if you pay within 14 days. How can I check if my vehicle is liable for the fee? Go to tfl.gov.uk/modes/driving/ultralow-emission-zone/vrm-checker-ulez and enter your vehicle’s number plate details. ‘When I speak to the guys in Battersea there is talk of it, but it’s almost as if customers don’t realise quite what a big charge it is. It’s almost as if they need to feel the effects of the charge before they want to change.’ For car dealers within the ULEZ, the charge could hit them every time they need to take a car on a test drive. McMinn explained that when Battersea falls into the wider area, it’s not something it is ‘anticipating is going to cost us a lot of money, but it certainly won’t affect our willingness to give test drives’. He said: ‘It would be ridiculous, even if it costs £11 to take someone on a test drive, not to do that. ‘If that’s the cost of running a business in London, so be it. It definitely won’t change what we do.’ Sliding Doors, p65
Deal sees Hendy Group become £1bn turnover company HENDY Group has become one of the UK’s largest dealership networks after buying south coast-based Westover Group. The deal, for an undisclosed sum, sees Hampshire-based Hendy become a £1bn turnover company with 2,000 employees and operations from Exeter to Eastbourne. Hendy chief executive Paul Hendy said the acquisition was a key milestone for the company, which this year is celebrating its 160th anniversary. ‘Westover is a hugely successful group and shares our philosophy of delivering a premium service
and putting the customer and its employees at the heart of operations,’ he said. ‘It’s very much business as usual, and all the dealerships will continue under the Westover name for the immediate future as the business is integrated into the Hendy Group.’ The acquisition means Hendy Group now operates 26 franchises from 83 outlets. Westover chairman Peter Wood said: ‘After more than 50 years in the motor industry I have decided that it is time to bow out. Westover has been my passion now for more than 40
years, and to find a suitable company to hand it over to, which has the same ethos of looking after its staff and customers, has not been easy. ‘We believe that in Hendy we have found that. It has been a long and interesting journey with Westover, starting as sales director in the mid’70s through to managing director in 1979 then leading a management buyout in 1984. At that stage, Westover was two branches with Austin Rover and 80 employees. I am very proud of what the managers and staff, many of whom are still with Westover Group, have achieved in the past 40 years.’ CarDealerMag.co.uk | 09
Dashboard. AWARDS CEREMONY
More plaudits for top Renault dealers
T
he best-performing Groupe Renault dealers in the UK have gained further recognition by attending a European awards ceremony in Paris. They were awarded commendations at Renault’s UK dealer conference in January and attended the more recent Paris event with Groupe Renault’s UK managing director, Vincent Tourette, and Louise O’Sullivan, UK network development director. The dealer representatives enjoyed an evening dinner to celebrate the Dealer of The Year 2018 Laureates from all of Europe, visited the Technocentre, Renault’s global R&D centre, then went to the awards ceremony at the Stade de France. The winning dealers were: l Lee Phillips, dealer principal, Renault Cardiff (Best Large Dealer) l Jonathan Gravell, group head and dealer principal, Gravells of
Kidwelly (Best Medium Dealer) l Charlie Bell, dealer principal, Bells of Crossgar (Best Small Dealer) l Mark Flood, dealer principal, Glyn Hopkin Chelmsford (Best New Dealer)
O’Sullivan said: ‘Great dealers are the lifeblood of any brand, and those who know how to look after their customers generate strong return custom as well as significant conquest sales from other brands.
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‘Each one of our winners has shown an exemplary approach to both customer service and Renault standards, and thoroughly deserves the pan-European recognition from our parent company.’
CarDealerMag.co.uk | 11
Dashboard.
News from around the UK
What’s been hitting the headlines on the home front? Here’s a round-up of stories PETERBOROUGH
Next car superstore will be ideally placed
SW CAR Supermarket is to open a new superstore in Peterborough. Just a year after launching a car supermarket in the Boongate area of the city, the firm has acquired a new facility in Werrington, slightly further from the centre. It is, however, on the well-used A15, making it an ideal spot for a dealership. The impressive new site is to house up to 1,000 nearly new and used cars, with 300 of them in the building itself. The business will then be able to host up to 1,500 cars between its two sites.
SUFFOLK
Dealers left devastated after thieves break in A CAR dealership in Suffolk has been targeted by crooks who broke into the premises before stealing three used cars together worth more than £30,000. Simon Shield Cars in Great Bricett, Ipswich, was broken into on the night of April 4-5. The thieves ransacked the offices before making off with a BMW M140i and two Ford Focus models.
COVENTRY
NORWICH
Volvo refurbishment wins plenty of praise
New Mercedes-Benz pop-up shop opens
TMS Volvo has spent £1.7 million transforming its Coventry dealership into a Volvo Retail Experience – and the showroom, in London Road, has already had lots of positive customer feedback. Len Hallows, managing director of the family-owned Volvo retailer, said: ‘Our recent refurbishment is designed to make our customers feel relaxed and at ease in an environment that provides flexible waiting, working and assessment areas.’
MERCEDES-Benz has opened its newest pop-up shop in Norwich’s intu Chapelfield Shopping Centre. Customers can experience a selection of the most popular Mercedes models such as the new B-Class, which comes with the innovative MBUX infotainment system and ‘Hey Mercedes’ voice recognition as standard. In the Approved Used Zone, customers can explore the GLA compact SUV. Gifts are available to buy, too, such as watches and fragrances.
12 | CarDealerMag.co.uk
The BMW was worth £21,000 and the Fords were priced at £6,750 and £6,250. The dealership is run by husband-and-wife team Simon and Caroline Shield, and on Twitter, Caroline described the burglary as ‘devastating’. Simon, above, said: ‘It’s the commercial aspect that bothers me. I’m out of pocket to the tune of around 30 grand.’
Best-selling new cars in March March 2019
Source: SMMT
Ford Fiesta Vauxhall Corsa Volkswagen Golf Mercedes-Benz A-Class Nissan Qashqai Ford Focus Mini Volkswagen Polo BMW 1 Series Toyota Yaris
14,676 13,244 11,072 10,805 10,701 9,734 8,896 8,614 7,986 7,853
The statistics, p62
NORTH LANARKSHIRE
Korandos will boost community projects
NORTH Lanarkshire Council has taken delivery of two SsangYong Korando 4x4s, which will mainly be used by its justice services team to assist with a series of community projects, and to help home care workers travel more freely within the county. David Wishart, dealer principal of Frasers of Falkirk, said: ‘We were delighted to hand over the Korandos. The new 4x4 vehicles will be of great assistance as they help with rural community engagement.’
A global snapshot of dealership news.
Around the World, p36
LONDON
GLASGOW
£10m Volkswagen showroom launched
McLaren accolade rewards performance
THE official launch of Lookers’ new £10m Volkswagen dealership in Battersea was held recently. The new showroom, in York Road, was officially opened to a packed audience, which included senior directors from Lookers and Volkswagen Group. Andrew Savvas, director of VW UK, described the new showroom as ‘one of the most impressive Volkswagen retailer premises in the UK right now’ and added: ‘This is a very important location for us.’
McLAREN has named its Glasgow dealership European Retailer of the Year for 2018. The award recognises the showroom’s excellent sales performance and high standards of business operation, said the iconic British manufacturer of sports cars and supercars. The dealership joined McLaren retailers from Beverly Hills, Taipei and Mexico as a regional finalist for the Global Retailer of the Year 2018 Award, which was ultimately claimed by McLaren Beverly Hills.
‘Tesla owners can work off their pent-up range anxiety by going for a quick, anonymous knee-trembler in the bogs at Grantham Services.’ Big Mike, p33
COVENTRY
Another addition to MG dealer network
UNITY Coventry has joined the MG Motor UK dealership network. Operated by the Unity Automotive group, the site in Station Road, Balsall Common, is the sixth dealership appointment for the MG brand in the UK in 2019, taking the total number of franchised MG Motor UK dealers to 90 nationwide. Dealer principal Elliott Cartwright said: ‘We are confident that MG will be a great addition to the group and are looking forward to welcoming both new and existing customers.’
LINCOLNSHIRE
Additional capacity for Kia’s UK imports
KIA has announced a deal to create extra storage capacity at its UK import and distribution centre in Stallingborough, Lincolnshire. The multi-million-pound development highlights the confidence the brand has in the UK and its continued presence within the UK market post-Brexit. Situated three miles from the Port of Immingham, the distribution centre is a key hub for all Kias entering the UK from its plants in Slovakia and South Korea.
WEST YORKSHIRE
Sweet! Motorpoint and Haribo help local hospice MOTORPOINT has teamed up with Haribo to give away a new car to mark the 30th anniversary of a hospice. Representatives of the independent car retailer, which has a branch in Castleford, were joined by Haribo to hand over the keys to a Fiat 500 1.2 Lounge worth more than £10,000 to the Prince of Wales Hospice, which is in nearby Pontefract.
It will be used as a prize that one lucky member of the public will win via the hospice’s special 30th-anniversary raffle. The car was revealed by nurses from the hospice together with players Grant Millington and Mike McMeeken from Castleford Tigers and the Haribo Gold Bear mascot.
First drive:
Honda HR-V Sport The brand has attempted to make its crossover racier, but has it succeeded? Forecourt, p44 CarDealerMag.co.uk | 13
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
14 | CarDealerMag.co.uk regulated by the Financial Conduct Authority (Financial Services Register number: 311753). Registered in England. Registered No: 2901725. Registered Office: 1 Churchill Place, London E14 5HP. BPF/MDS3/0918
Partner Finance
* 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 | 15 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.
CDX 2019 UPDATE
A day filled with June 12, 2019, Farnborough International Exhibition & Conference Centre MAKE YOUR PITCH
You could win a fantastic prize – but only if you dare to enter the Dealers’ Den!
A
re you the next best thing in the automotive industry with a new and innovative product that will really make people sit up and take notice? Could you do with some free help from business insiders and experts to get it out there? We’re looking for small upcoming companies and start-ups to take part in a fantastic new feature at CDX this year – Dealers’ Den. CDX is Car Dealer Magazine’s fantastic conference and expo dedicated to the UK retail motor industry. At this year’s event, being held at Farnborough International on June 12, we’re giving five of you the opportunity to make a fiveminute public pitch to our panel of top names from the automotive industry. Those of you selected will be able to demonstrate what’s so special about your product, how it works and its potential for the industry, with the panellists quizzing you about it.
In association with
16 | CarDealerMag.co.uk
There won’t be anything else going on at CDX at the time, so you’ll also have the audience all to yourself and eager to see what you’ve got to offer. After all the pitches have been given, a winner will be decided by the panellists and awarded the fantastic prize of a year’s free PR and editorial support from the experts at OnCue Communications and Blackball Media – the UK’s leading automotive PR and media agencies – to push and promote their product. Worth thousands of pounds, it will consist of the creation of six bespoke press releases over the following 12 months, a feature in Car Dealer Magazine – which reaches up to 12,000 franchised dealers, independents, service and repair sites, car manufacturers and suppliers – plus a free stand at CDX 2020. Andy Entwistle, managing director of Blackball Media, said: ‘This is a fantastic opportunity for a
young, vibrant company or start-up to really get their new product noticed. ‘Not only will they have the undivided attention of big hitters from the automotive industry with their combined business acumen – something that money just can’t buy – but the amazing PR potential being offered to the eventual winner will be the extra boost that really could take them to the next level and beyond.’ The closing date for applications to enter our Dealers’ Den is Wednesday, May 1. For more information and to apply, email andy@blackballmedia.co.uk with details about your company or start-up, what your product is, and why you should be selected to make your pitch. Entwistle added: ‘I’m sure there are many terrific new products out there that the industry needs to know about, and I can’t wait to hear about them and give the ones that we can the help they deserve.’
opportunity CDX 2019 will be hosting 12 best-practice workshops throughout the day and delegates will definitely not want to miss them! 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’s news about two recent additions to the workshop schedule...
WORKSHOP
Tackling the threat of cyber crime Presented by Johnty Mongan, cyber risk consultant at Gallagher Insurance.
Y
ou might think cybercrime is just something that affects large organisations such as Facebook and the NHS, but it’s a serious threat to companies of all shapes and sizes. In fact, car dealerships are some of the most vulnerable organisations when it comes to hacking, says Johnty Mongan. In his interactive workshop, dealers will learn first-hand how easy it is for an attacker to exploit
common vulnerabilities within a company, as well as find out what a hacker uses to discover information about a company. This will be illustrated with a couple of websites on the dark web, as well as the actual applications that are used by hackers. The workshop will be split into two parts – insurance and risk management. The former aims to showcase the importance of
having cyber insurance and how it can help a business recover in the aftermath of a cyber hack, while the latter will show dealers how to identify threats to their businesses and spot weaknesses in their infrastructure.
WORKSHOP
Why do car buyers want to personalise finance at 4pm but reserve a car at 10pm? Presented by Paul Boocock, head of data insight, and Rebecca Boocock, head of delivery, at Codeweavers.
W
hat can data reveal about car buyers’ online habits? This interactive session will look at what customers’ behaviour says about them in terms of what car they’ll buy, when they’ll buy it and what their journey might be. The workshop will aim to provide dealers with insight they
can use to tailor that journey. Attendees will also be taken through what it is that leads car buyers to perform certain actions online at certain times, such as personalising a finance quote or applying for finance. The Codeweavers duo will show how you can find trends within data, start to model predictions of user behaviour and use this
insight to drive improvements to your online car sales. But there are many ways to interpret data, so Rebecca and Paul will also be telling attendees how it can potentially be misleading.
Exhibitors include... 1Link Disposal Network 8Cats Automotive Absolute Alignment AirMan UK AutosOnShow Barclays Ben Cap HPI CarGurus Cartotrade.com Cash 4 Declines CCKeys CitNOW Codeweavers Cox Automotive Crucially Digital Dealer360 eDynamix Force24 Gallagher GardX GForces Gubagoo iDealFile InAutomotive JudgeService Keytracker Lawgistics LivePerson LuxuryCars.London Moneypenny MotorCheck NFDA OnCue Communications Premier Diagnostics Rapid RTC Refreshment Systems RMIF Starkwood Media Group Traka Automotive Warranty Administration Services What Car? WMS Group Vee24
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 | 17
Dashboard. DIVERSIFICATION
Looking beyond sales can From beauty treatments to events, car dealers are having to think more and more out of the box to attract customers amid Brexit worries and falling sales, as Ted Welford found out.
Y
ou don’t need us to tell you that it’s a pretty bleak time out there for the motor industry. By the time you read this, who knows what Brexit-related drama will have unfolded in Westminster to make life more difficult for all of us? New car registrations fell by 6.8 per cent in 2018, and the Society of Motor Manufacturers and Traders is predicting further declines for 2019 and 2020. But for dealers willing to change and adapt, there are opportunities to succeed in a challenging market, and diversifying is a great example of how to do so to ensure a level of sustainability. Joe Macari is a prime example. Its huge supercar showroom in a prominent south London location houses some of the finest classics and most expensive new supercars on the market. But why just use this space to shift metal? That’s why the dealer also operates its showroom as an events facility – so rather than celebrating your 60th birthday in a chilly village hall, you can instead have it in the presence of millions of pounds’ worth of Ferraris and Maseratis. Events sales manager Rosie Scott told us: ‘We hold a broad spectrum of events, from birthday parties to corporate meetings. ‘Everyone is amazed by the showroom when they visit. ‘Who wouldn’t want to be at a dinner party and be surrounded by dream cars?’
What the car makers said...
The showroom is on two floors, with space for 80 to 100 people upstairs and downstairs able to accommodate more than 600 guests. Clients can choose the cars they want on show, so if a classic Ferrari is better suited to an event than a new hypercar, that can be arranged. If you wanted to use the downstairs, the cost would be somewhere in the region of £16,000 (depending on the number of people) and £5,000 for the upstairs. And there’s no need to worry that your gathering will be interrupted by customers, as events are usually held during the evenings. Scott added: ‘We can combine the two sides of the business, and holding events just enhances the dealership further. ‘We’ve also known people attending events in the past to buy a car from Joe after seeing their dream vehicle on display in the showroom, so it’s a fantastic combination.’ The importance of getting customers through the door is particularly important at The Octane Collection in Horsham, West Sussex. It uses its showroom and grounds for ‘Breakfast Club’ gatherings to entice rich supercar owners in to boost sales. We headed along to one of its Saturday breakfast meets, held in partnership with the Supercar Driver club. The dealership hosts three dedicated breakfast club events a year but also accommodates smaller groups at various times.
The Octane Collection West Sussex
Fancy a rich breakfast? This is where you need to be... Despite the bleak and drizzly weather on the day we attended, 30 fearless owners turned out in all sorts of exotica such as limitededition Porsches and Ferraris costing well in excess of £500,000. And what better way to get rich clients through your door than bring together supercar owners, butter them up with posh French pastries and coffee and let them sit in all your prized low-mileage exotica? It’s therefore not that much of a surprise to learn that the team sold a car there and then that morning, with further inquiries generated by the event. Photography by top outfit Image Automotive, whose clients include
Top Gear, is also an option, while car storage is offered too – yet another string to the business’s bow. But as well as making money for the company, it’s all about satisfying every need for the firm’s customers. Showing another impressive level of diversification is Poole Audi. We’ve featured the Dorset dealership on these page before, with its showroom offering customers on-site beauty treatments and gym access. It’s still believed to be the only UK dealer to have such facilities, and aftersales manager Scott Redman told us that the numbers using the services were increasing all the time. ‘Even though the centre has been
‘The question of diversification into other businesses (cafes, etc) is a very complex discussion.’
‘Diversification dilutes focus. Sticking to what we know and doing it better than everyone else is more important than adding alternative distractions.’
Simon Hetherington, commercial director, Kia UK
Chris Graham, managing director, Subaru UK
18 | CarDealerMag.co.uk
Nissan delivers the dealership of the future.
News, p24-25
help dealers stay afloat Joe Macari South London
Poole Audi Dorset
New car sales in decline The graph below demonstrates how new carthousands slaes Hosting events helps bring in the punters – and of pounds
Beauty treatments and car sales go hand in hand here
opened over two years, and we do convenient for customers, it wasn’t our absolute best to market the bringing punters in. A survey of 600 gym and beauty treatments, it’s still of its customers found that most 2.693 2016 a surprise for new customers – it weren’t bothered about it, so it has blows them away.’ since reduced the area it covers. 2.541 2017 Alongside the tasty coffees The money saved has gone and free Daily Mails, Poole Audi into paying for more hire cars (up 2.367 2018 also offers its meeting rooms to from 25 to 40), and increasing customers, 2019 local(predicted) charities and the 2.313 the number of while-you-wait council, which all helps to increase appointments, which was what the number2020 of potential customers (predicted) 2.290customers were asking for. walking through its doors. Judging by some of the responses But perhaps what’s fundamental when we raised the subject of 2 it2.1asks2.2 diversification 2.3 2.4 2.5 on 2.6the2.7 2.8 2.9 3 to the dealer’s success is that Car Dealer SMMT New Car Salesthough, some what its customers need and reacts Magazine Forum, (Figures in millions) accordingly. Poole Audi previously of you aren’t exactly the biggest of had a wide-ranging pick-up and fans. One member said: ‘Do this job drop-off service covering Hampshire correctly and with interest and you and the Isle of Wight but while shouldn’t have time for gyms, spas,
beauty parlours and photo booths.’ seemed the most popular – There’s definitely some truth in particularly breakfast club meetings that, but as buyers increasingly look – but each buyer has different needs to buy online, there needs to be from the last, and making sure you more and more of a reason for them try to accommodate as many of to set foot in a showroom, rather these wishes as possible is vital. than complete a few clicks online However you decide to diversify and have a nice shiny new or used though, you could ensure success car delivered to their home. and sustainability even in times Our quick Twitter poll showed of economic uncertainty. Why not that car-related diversification the challenge? [CD] New car salesembrace in decline
have been in decline since 2016. It also includes predicted data from the SMMT for 2019 and 2020
‘We do our utmost to create an environment that is conducive to a VIP in-store experience. As such, we are upscaling our UK network of retailers with a £1bn investment.’ Scott Dicken, sales director, Jaguar Land Rover UK
The graph below demonstrates how new car slaes have been in decline since 2016. It also includes predicted data from the SMMT for 2019 and 2020.
New car sales in decline The graph demonstrates how new car sales have been in decline since 2016. It also includes predicted data from the SMMT for 2019 and 2020.
2.693
2016 2.541
2017 2.367
2018 2019 (predicted)
2.313
2020 (predicted)
2.290 2
2.1
2.2
2.3 2.4 2.5 2.6 SMMT new car sales
2.7
(Figures in millions)
CarDealerMag.co.uk | 19
A GOLDEN OPPORTUNITY With ten awards and counting, the Isuzu D-Max is class leading. With such a strong product, it’s an exciting time for the Isuzu brand.
As the Pick-up Professionals, Isuzu are proud of their unwavering focus; manufacturing hard-working vehicles, built to go the distance, sold by a network of dealers who are truly experts in their field. 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.
THE AWARD WINNING ISUZU D-MAX. QUITE CLEARLY, IT JUST WORKS. Trade Van Driver 2018 ds awar
PICK-UP OF THE YEAR
2019
20 | CarDealerMag.co.uk
BEST MODEL
Dashboard. RESCUE BID
50:50 venture to run Smart
AUTOMOTIVE giants Daimler and Geely will form a joint venture to run the city car firm Smart. The brand has been a loss-maker for parent company Daimler, which also owns Mercedes-Benz, since the launch of its first car, the City Coupe, in 1998. Under these plans, Smart would accelerate its evolution to a manufacturer of pure electric vehicles – ditching internal combustion by 2022. Manufacturing of these vehicles would move to a new, purpose-built facility in China, and Geely and Daimler would take equal roles – with Daimler responsible for the design and styling and Geely the engineering. The board of directors of the new joint venture will be formed of six executives, three drawn from each company. Industrial group Geely has a history of purchasing and ‘saving’ brands. Its largest acquisitions of past years have included Swedish manufacturer Volvo, British sports car brand Lotus and Malaysian car maker Proton.
MITSUBISHI
Vehicle sales up by 15 per cent MITSUBISHI Motors in the UK finished its financial year to March 31, 2019 with sales of passenger vehicles totalling 20,675 – up 22 per cent over the previous financial year. A further 10,600 commercial vehicles were sold, making a total increase of 15 per cent.
CONSUMER TRENDS
Why car showrooms ‘aren’t attracting younger buyers’
T
he polished floors, shiny cars and bright lights of car showrooms still appeal to the over-55s, but customers in younger age groups are much more likely to buy their car elsewhere. That’s according to a new Opinium survey of more than 2,000 UK drivers, commissioned by GAP insurance supplier InsuretheGap.com, which found that 82 per cent of over-55s bought their new or second-hand car from a car showroom, compared with 60 per cent of 18-to-34-year-olds, who are more than twice as likely as over55s to have used a private seller advert when buying their car. One in five of under-34s said they found car salesrooms intimidating – twice the number of over-55s. Women also said they found them more intimidating than did men – 16 per cent against nine per cent. A fifth also found negotiating stressful and would rather cars were advertised at the final selling price than having to negotiate (22 per cent
by REBECCA CHAPLIN @believebecca
of men versus 17 per cent of women). Over-55s were more comfortable negotiating than younger generations were, though. Almost a third (32 per cent) of buyers go to car showrooms but then compare the cars’ prices online. For those avoiding car showrooms, nearly one in 10 (nine per cent) were happy to buy a car from a reputable seller online without having ever seen it, and the same number were happy to travel across the country to collect a car bought online. In both cases, men were twice as likely to do so than women. Surprisingly, more than half (51 per cent) said they would buy a car
that they hadn’t test-driven, with men again more likely to do this than women (56 per cent men and 47 per cent women). Almost one in five UK drivers (17 per cent) would also buy a car on their own without consulting their partner. Ben Wooltorton, chief operating officer of InsuretheGap.com, said: ‘Older generations are used to faceto-face interactions being the norm, so maybe this is the reason why they aren’t intimidated or put off by the atmosphere of a car salesroom. ‘For younger generations, used to doing everything online, it might feel a more alien and less comfortable environment. Car salesrooms might need to find new ways to engage with a younger audience, who are used to shopping around, comparing prices and buying things online.’
‘Car salesrooms might need to find new ways to engage with a younger audience.’ Ben Wooltorton, chief operating officer of InsuretheGap.com
JLR welcomes Chinese court case win over copy of Evoque JAGUAR Land Rover has won a ‘significant’ case in the Chinese courts against a company that produced a copy of one of its models. The firm said Beijing Chaoyang District Court had decreed that the Range Rover Evoque had five unique
features copied in a model called Landwind X7, built by the Jiangling Motor Corporation. The court determined that all sales, manufacturing and marketing of the Landwind vehicle must cease immediately and that Jaguar Land
Rover be paid compensation. Keith Benjamin, JLR’s global head of legal, said: ‘We welcome this decision, which further strengthens our confidence in investing in China and in the fairness of intellectual property adjudication in the Chinese courts.’ CarDealerMag.co.uk | 21
22 | CarDealerMag.co.uk
Dashboard. MOTORPOINT
Healthy profit growth ahead
CAR supermarket Motorpoint’s underlying pre-tax profit growth for the past year should be in the region of 10 per cent. The group also expects to report revenue growth of more than six per cent for the year ended March 31 against the previous financial year, it said in a full-year trading update and notice of results issued ahead of its preliminary results, which will be released on June 11. Chief executive Mark Carpenter, pictured, said: ‘The group experienced a slower second half but I am pleased that we have achieved double-digit profit growth for the full year and executed strong cost disciplines. ‘Our resilient model is demonstrated through a gross profit-to-overheads ratio of 144 per cent and a robust closing balance sheet, which is again absent of any structural debt. ‘The agility of the group’s business model enables management to react swiftly to the evolving political and economic situation.’
CARGURUS
Used cars sell fast in Scotland USED cars sell six days faster in Scotland than the nationwide average, according to data from online automotive marketplace CarGurus. According to CarGurus data, cars spend just 25 days on dealer forecourts in Scotland compared with the average of 31 days across the UK.
ACCOLADES
Twell done! Award delight for Vauxhall’s best dealers
L
incolnshire dealership Twells of Billinghay has been named Vauxhall’s top-performing retailer based on the level of quality delivered to its customers. The manufacturer’s Customer Excellence Awards have been running for eight years, with Twells of Billinghay having won an award each year since 2012. This year, though, it came top out of the 43 Vauxhall retailers nationwide that received one of the awards, after scoring the most in Vauxhall’s customer purchase satisfaction and service satisfaction surveys, which were calculated at the end of 2018. Customers are invited to take part in the customer satisfaction
by REBECCA CHAPLIN @believebecca
programme after buying a new vehicle or when they’ve had one serviced. To celebrate the accolade, Vauxhall group managing director Stephen Norman presented dealer principal John Twells and his team with their award, pictured above. ‘I would like to congratulate the team at Twells of Billinghay on this outstanding achievement,’ said Norman, pictured centre left. ‘Twells has delivered again and should be proud of its efforts. ‘It’s great to see Vauxhall retailers providing such a fantastic service
to our customers. Sales and service teams across the UK are customerfocused, and their dedication and enthusiasm helps Vauxhall to deliver an outstanding customer experience.’ Twells, pictured front right, said: ‘We are delighted to be recognised as the top-performing Vauxhall retailer with this fantastic Customer Excellence Award. It is a testament to the hard work and dedication of the team here. ‘Customer satisfaction is our top priority and we are committed to delivering a fantastic customer experience, ensuring every person who walks through our doors feels we have gone the extra mile to cater for their needs.’
The other winning Vauxhall retailers: Bristol Street Motors Lichfield; Arthurs of Oswestry; Sonning Common Garage; Davidsons of Morpeth; Bristol Street Motors Sunderland; Drive Weston-super-Mare; 06 Ormskirk; Perrys of Canterbury; Bristol Street Motors Durham; Westcars of Tiverton. Bristol Street Motors Crewe; Aston Melton Mowbray; Accrington Garages; James Haugh, Dumfries; Saltford Motor Services Ltd, Bristol; York Ward & Rowlatt, Wellingborough; Drive Hartlepool; Drive Bristol North; Dickens, Rhostyllen; Tustain Motors Ashington.
Drive Bury St Edmunds; Drive Redcar; Pentagon Derby; JB Motors, Malton; Marshall of Peterborough; Perrys of Rotherham; Eden Exeter; Evans Halshaw Peterlee; Brindley Cannock; Fiskens of Forfar. Drive Bristol Central; Evans Halshaw Horsforth; Evans Halshaw Newport; Drive Aldershot; Dobies, Workington; Marehay Garage, Ripley; Steeles of Worthing; Troops, Leadenham; Lindsays, Milton; W P Lewis & Son, Pembroke Dock; Lochside Garages, Enniskillen; Kerr & Smith, Cumnock.
Electric cars outsell fossil fuel-powered vehicles in Norway ELECTRIC cars outsold fossil fuelpowered ones in Norway in March. Christina Bu, the Norwegian Electric Vehicle Association’s general secretary, said 58.4 per cent of new cars sold in the country in March were battery-powered, calling it ‘historically
high’. She added that electric cars’ share of the market in the first three months of 2019 was 48.4 per cent and expected to hover around 50 per cent for the whole year. Norway – a wealthy nation of 5.3m people – has provided big incentives
to boost electric car sales. It waived hefty vehicle import duties as well as registration and sales taxes for buyers of electric cars to boost sales. Owners do not pay road tolls and are allowed to use bus lanes in congested city centres. CarDealerMag.co.uk | 23
Dashboard.
TAKING FINANCE Our dealers have told us they want a simpler, faster finance process. One that helps build customer relationships. So we’ve done it. Two new ways to help you unlock customer opportunities: Portfolio3Sixty Our market-leading retention tool FinanceOnline Our POS system provides a more bespoke service to your customers
The all-electric Leaf takes centre stage
MANUFACTURER’S INITIATIVE
A glimpse into the future – and a new way to buy from Nissan by TED WELFORD @TedWelford
N
issan has revealed a dealer concept store in Paris that aims to herald a new era of digitalisation in its showrooms, and give ‘full control’ to customers. The City Store, based in a busy shopping centre in the suburbs of the French capital, is the carmaker’s first venture in such a location. Nissan is following in the footsteps of firms like Tesla, Ford and Seat, who have all experimented with these alternative models. Nissan has acknowledged that consumers are now more aware of what they want before setting foot in a showroom, so this new concept store aims to support that and give consumers ‘full control’ over their purchase, embracing more digital technology in the process. The French store, operated in association with the Groupe Altaire dealer network, has been in the planning and development stages for a year. It offers 88 square metres of display screens, as well as five spaces for test-drive handovers and will expand later in 2019. Customers are greeted
‘City Stores will put people at the heart of our vision for tomorrow’s mobility.’ Leon Dorssers, Nissan corporate vice president 24 | CarDealerMag.co.uk BHL11167_Car_Dealer_Rocket_Bookends_AW_v2.indd 2
02/04/2019 13:25
TO THE NEXT LEVEL
by ‘Intelligent Mobility Ambassadors’, who are similar to Apple-style Geniuses. They aren’t traditional car sales people but might have backgrounds in music, technology and art, for example. Customers can specify and buy a car online from within the showroom ‘in just a few clicks’. Leon Dorssers, corporate vice president, global sales and retail at Nissan, said: ‘City Stores will put people at the heart of our vision for tomorrow’s mobility, all while they’re going about their normal shopping. ‘This unveiling marks a step forward in our global commercial strategy, using e-commerce and new mobility technologies to enhance the customer experience both online and offline.’ Customers can take advantage of the same leasing and PCP schemes as they would in a typical dealer. Buyers will also be able to have their car delivered to another Nissan dealership, or to their home. While the City Store will not be a concept that will have a mass roll-out, the firm has said that it wants to expand the idea to further cities such as Berlin and Tokyo. Nissan has not yet confirmed whether the UK will be included.
Specifying and buying a car will be achievable in ‘just a few clicks’
Discover the next level of dealer finance at blackhorse.co.uk/nextlevel
CarDealerMag.co.uk | 25 BHL11167_Car_Dealer_Rocket_Bookends_AW_v2.indd 3
02/04/2019 12:08
Power Awards.
CAR DEALER POWER
Have your say on the suppliers and carmakers you do business with
I
t’s the annual survey that gives car dealers the chance to have their say on the suppliers and car manufacturers they do business with – and it’s now in its tenth year! We ran the first Car Dealer Power event in 2010 – making this year’s survey especially significant – and we’re keen for the 2019 results to be the most comprehensive and informative yet. Ever since the inaugural Car Dealer Power, more and more dealers have given us their honestly-held opinions. That’s because we don’t ask for any identification from the people making the nominations, so there’s no fear 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, nononsense survey. We want you to tell us which manufacturers and suppliers are the best and how good they are at helping you. For example, how do you rate the online auction and trade-to-trade remarketing sites you use? How does your warranty provider perform? We also want to know, though, which are the
companies 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 picture of the firms that aren’t coming 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 online. It won’t take longer than 10 or 15 minutes and your opinions and votes could make a HUGE difference. The web address you need is below.
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 head online and complete the survey today!
Complete the survey online today at CarDealerPower.com
26 | CarDealerMag.co.uk
89% of dealers
rate our compliance knowledge and support good or very good
We rely on the compliance expertise that Close Brothers “ Motor Finance brings to our partnership. They offer guidance on completing our Gabriel returns, feedback on our advertising, and the support they provided with the introduction of GDPR was invaluable.
�
Raymond Stanex, Comber Commercial Centre
To start your journey with us
visit closemotorfinance.co.uk/compliance
Compliance
|
Finance
|
CarDealerMag.co.uk | 27 Insight | Funding
Dashboard.
They think it’s all over – it is now! But what a thrilling last race it proved to be. Adam Weller reports from Reading.
A
ll eyes were on Reading as the final of the Car Dealer Go-Karting Challenge in association with Close Brothers Motor Finance got under way at the end of March. For the event, the town’s TeamSport go-karting track – a 900-metre, three-floor international layout – was pressed into use. The teams and drivers that had prevailed at the regional qualifiers would be facing one of the most challenging venues in the TeamSport portfolio during their 90-minute race, courtesy of its mix of high-speed corners, hairpin turns and varied grip levels. Based on prior performance, the favourites heading into the event were eastern victors Your Best Car, who took a commanding win in Basildon in January, while momentum would be with the ‘Beautiful Blades’ team from Blade Volkswagen, who took a hard-fought victory in the final qualifier in Bristol. Two unknown quantities on the grid came in the form of both firms hosting the event; we here at Car Dealer Magazine were to put together a team of our finest driving talents. Blackball Media managing director Andy Entwistle and events manager Amanda Philp were recruited, while joining them were Susie Ancell and Stu Harvey from dealership web design and marketing experts 67 Degrees. Close Brothers Motor Finance also fielded a team dubbed ‘Not Close Enough’ – an apt name, as we later discovered. 28 | CarDealerMag.co.uk
CHAMPIONSHIP
It’s the final... and our racers put their kart and soul into it!
Other teams to watch included Bel Royal Kia of Jersey, who had progressed from the southern qualifier in Eastleigh and once again flew in to challenge for honours, while Roundstone Vans, Billau Motorcycles, ‘The Biker Boys’ and ‘Splends’ would also be keen contenders. After the practice session, the random grid system employed at all previous rounds meant that Mountsett would be on pole position in the #8 kart. However, when the 90-minute race
began, the battle of the race soon emerged, with Bel Royal and Your Best Car looking like firm favourites in the early going. Of the two, it was the Jersey dealership that looked to have command. With 15 minutes of the race in the books, the Kia franchisee already had a 15-second advantage over Your Best Car. However, this would change over the team’s respective second stints. Despite admitting to a visit to the circuit earlier in the day, Bel Royal’s Max Brochet found himself struggling to match the pace of Your Best Car’s Garrett Green – the dealership director’s pace was such that his team contemplated leaving him in the driving seat for the remainder of the race, but after a lengthy stint Green was relieved. At that point. there was less than half of the race to go and his team now led the way. Elsewhere, the Splends and Biker Boys outfits were both a lap down and embroiled in an intriguing battle for third.
The people I won’t sell a car to!
PHOTOGRAPHY: JON REAY
Feedback, p34-35
See more pictures at bit.ly/kartingfinal
Full results: The final
The final race of our challenge was as thrilling and exciting as the regional qualifiers that had gone before
1. Your Best Car
78 laps
2. Bel Royal
77 laps
3. Biker Boys
76 laps
4. Splends
75 laps
5. Essex Rangers
75 laps
6. Beautiful Blades
75 laps
7. Billau Motorcycles
75 laps
8. Mountsett
73 laps
9. Roundstone Vans
73 laps
10. Not Close Enough
72 laps
11. Car Dealer Magazine
68 laps
Figures on the right indicate the number of laps completed in the 90 minutes of the race. Timings also taken into account.
Ultimately, it would be Biker Boys who took the third spot on the podium. But back to the top two positions... With half an hour of the race to go, Your Best Car held a lead of just 1.8 seconds over Bel Royal. Thanks to breaks in the traffic and a faster final stop, this advantage would ultimately be a full lap, with Your Best Car completing 78 circuits over the course of the 90-minute race. Bel Royal took a comfortable second place ahead of the Biker Boys and Splends, while the Essex Rangers rounded out the top five. Blade Volkswagen never looked likely to score a podium during the race despite taking victory in February’s Bristol qualifier, ultimately finishing sixth after a late scare when the TeamSport officials were unsure as to whether they had completed all of their mandatory pit stops. Billau Motorcycles followed in seventh, ahead of Mountsett and Roundstone. The two host teams – the ‘Not Close Enough’
It was a big ‘well done’ to our top three finishers entry from Close Brothers Motor Finance and the Car Dealer Magazine squad – finished 10th and 11th (last) respectively. At the end of proceedings, Your Best Car’s Josh Brown said: ‘Basildon was a hard race. This, I think, was even harder. It all started okay – we started from the front, the red lights went out… and we were overtaken, I’m not going to lie! We fell 27 seconds behind, but somehow we fought
back and won it – great news!’ A big thank you to every competitor in the Car Dealer Go-Karting Challenge, held in association with Close Brothers Motor Finance – we hope to don helmets and go racing again in the near future.
CarDealerMag.co.uk | 29
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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
It might only be a small screen but use it right and it could have a big impact
I
t has been well documented that I cannot do anything without my phone. This week I managed to drive 200 miles from my house without my purse (accidentally) only to realise that my card had expired and my Apple Pay was no longer working. Fortunately, the kindness of strangers meant I was saved by a petrol station cashier who lent me her money to get to where I needed to go. A pretty extreme case, admittedly, but my brain seems to only assess whether my phone is on my person and, basically, nothing else matters. I’m not proud of this, but last week I spent an average of three hours and 13 minutes a day looking at my phone and picked it up to check it 169 times every day. That means I actually spent a whole day last week purely looking at my mobile phone. I’m even more ashamed to say that while I was trying to check my screen time, I automatically checked my Instagram and sent a few texts before remembering why I actually picked it up. Maybe this column should really be about the state of humanity – that a normal woman is incapable of functioning without her phone on her. It affects me to the point that my friend said she preferred it when we met up and I wasn’t looking at my phone or trying to work on my laptop while chatting with them. I told them not to worry, the next time I stop by for lunch I will leave my laptop in the car and hand my phone over to them. Two weeks later, we sat around the kitchen table and I placed my phone face down. Without even realising, only five minutes had passed before I was picking it up to check what was going on in the world. In my opinion, phones should be doing more in our daily lives. I’m already using mine at all stages, but there are some gaps to be filled. On a recent trip to London I realised that I had pretty much used my ‘phone’ for everything. I’d bought my ferry ticket (yes, we’re based somewhere where you have to cross water to use public transport) using my phone, I bought my coffee using my phone, I worked out on my phone when the trains would be leaving, bought the train ticket with my phone, then used the phone as a ticket to get through the gates with a QR code. It was my Oyster card on the
Tube – and I even used it as an actual phone to make a call at one point. We can already use phones as the central system for our cars via Apple CarPlay or Android Auto, we can find directions, the nearest petrol station and ask Siri how deep a local lake is (true example). I’ve been conditioned by our technology-focused lives, I have a serious addiction and I need to visit some sort of retreat where there is no phone signal – not even 3G. Unfortunately for my iPhone-shaped eyes and social life, that’s not the point I’m trying to make here. In fact, I want to highlight what a wonderful opportunity this is for you – if executed correctly. Maybe I am an anomaly but I doubt it. If I spend three hours a day looking at my phone then that’s more time than I spend watching TV or driving – basically, I’ve got more chance of seeing an advert in that small glass window than anywhere else. How do you do it right then? I’m no expert when it comes to marketing but when it comes to using social media I’m a semi-pro and this is what would work on me. For starters, don’t sell me the car, sell me the lifestyle. When you think about a phone screen and a social media post, the first thing you’ll notice is it’s really small. Phone addicts such as me aren’t using their phone as a pastime – it’s second nature and they’re looking for something other than your advert. OK, you’ll probably argue that social media is a pastime, and you’re right. It’s just not the same as a traditional hobby, because where’s the fun? It’s mindless scrolling and there’s no point, apart from hunting for likes or finding out what your exboyfriend or ex-mates are up to since you stopped being able to spend time with them without your phone. That does mean that the adverts you place on my phone have really got to catch my eye. I don’t mean they need to feature neon colours and flashing GIFs – at least, not for me. The things that really catch my eye online are the posts that don’t even really stand out in my feed – the ones from those brands that have really thought about what their target market is looking at. It’s not all about social media either. My phone usage might be shockingly high when it comes to Instagram and Twitter but we’re using different messaging apps more and more to communicate, we’re checking our emails, we’re searching for businesses on Google Maps. How effectively are you listed in all the right areas so that when a customer is looking for the closest or best-rated dealership they find your business and so many reasons why they should engage with it?
‘I spent an average of three hours and 13 minutes looking at my phone and picked it up to check it 169 times every day.’
Rebecca Chaplin is head of editorial at Blackball Media and the editor of Car Dealer Magazine. CarDealerMag.co.uk | 31
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32 | CarDealerMag.co.uk
Big Mike Our man on the inside shares his thoughts on the car business
I’m plugging a new idea – and it could lead to electric cars sparking romance
I
may be about to find myself in the unpopular corner here, but I don’t like electric cars. Don’t get me wrong – the technology is brilliant, and while I confess that I am a bit of a Luddite, I’m not enough of a caveman to ignore the fact that the car industry is constantly evolving (though as the evolution of the Peugeot 205 into the 206 proves, this is not always for the best). But I digress. The thing that really sticks in my craw about electric cars is the sheer smugness of some of the people who own them, particularly those who make Ned Flanders out of The Simpsons look like the perfect neighbour. There’s nothing more annoying than seeing some self-satisfied cable-knit-wearing idiot dusting his hands after plugging in a charging cable, blissfully unaware that the factory from which his electric car emerged belched out more smoke during its production than will ever come out of the exhaust of my V8 Jaguar (or at least, that’s what I like to tell myself), as did the boat that dragged it here from Japan. Then there are the really fast and posh electric cars. If you own a Tesla, you may wish to look away now, as I might be about to offend you. You see, while the current catch-all phrase for the idiots on Britain’s road network tends to be ‘Audi Driver’, my fear is that the Tesla Driver goes one step beyond. After all, he (or she) combines the selfsatisfied smugness of an EV-driving ecowarrior with the other kind of self-satisfied smugness that comes with believing the badge on your car is some kind of symbol of your success in life (it isn’t, by the way – the wealthiest bloke I know drives an Austin Montego estate). Seriously, though. Just you watch them. Cue best David Attenborough voice: ‘Seen here in his natural environment, the Tesla Driver thinks nothing of paying over a tenner for a mug of froth and a glorified sandwich ending in the letter ‘‘a’’, as he justifies his purchase in the motorway service area refectory.’ Alas, that’s exactly what Tesla drivers tend to do in my experience – indeed, I never actually see them on the road. Whenever I stop to sprinkle my shoes while using our motorway network (which happens more and more frequently
with age), there are always somewhere between half a dozen and 10 of the dratted things parked one VIP block beyond the disabled bays, charging themselves up while their owners find somebody to bore over a soya latte, pretending it’s perfectly normal to have a 40-minute forced interruption to your journey at a rather pointless time of day, and while rush-hour traffic builds up around you. But maybe I shouldn’t diss the Tesla after all, for I’ve hit upon an idea that could make me more money than the motor trade has ever given me. Indeed, it was while pointing Percy at the porcelain during a long road trip down the A1(M) that I believe I had my ‘This time next year, Rodney…’ moment. You heard it here first: Tesla Tinder. A brand new app that allows Tesla owners to find kindred spirits (of which, as we’ve already mentioned, there are likely to be about half a dozen in Costly Coffee or Megabucks). Rather than bore the pants off someone who happens to sit down close to them – something that has led me, in the past, to arrange my spare change in order of the dates minted in order to avoid eye contact (don’t tell me you’ve never done it, or indeed aren’t about to empty your pockets now out of intrigue) – Tesla owners can find each other via the app and work off their pent-up range anxiety by going for a quick, anonymous kneetrembler in the bogs at Grantham Services. Imagine what could happen next – the first Tesla Tinder wedding (don’t stay for the speeches, unless you have Valium), or the first Tesla Tinder illegitimate offspring, which leads to one half of the pairing having his or her Tesla chopped in half as part of an acrimonious break-up. You could even have cheeky Tesla Tinder lingo – like letting other users know if you’re a plug or a socket, or if you’re AC/DC or like the idea of a three-phase fast charge. I’ve spent most of my career flogging clapped-out Cortinas and jaded old Jags, and now I’m close to my dotage, I may have finally found my breakthrough moment. So perhaps I do like electric cars after all.
‘If you own a Tesla, you may wish to look away now, as I may be about to offend you.’
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 | 33
Feedback. Your comments via email to dave@blackballmedia.co.uk
Our website at CarDealerMag.co.uk
The list of customers I see loads of tales of woe on the forums. Who are your target market? I’m in the process of setting up again with the same target market as previously. I am only interested in affluent prefamily individuals or post-family/kids-all-gone people. Don’t do families, sub-prime, finance or timewasters of any description. Kids are simply not allowed on the premises. I try to avoid local customers too and won’t sell to anyone I know socially. That rules out the majority of potential buyers, I guess, but previously I rarely needed more than one per car. I am pretty brutal in assessing customers. If I sense a pest, they don’t get further than an email or phone call. XFS
Picture of the month
That’ll work wonders for the friendly car dealer image! What went wrong last time? I have certain cars here and I think, ‘a little old lady will have that’, ‘first driver’, or ‘maybe someone looking to lug stuff around’. I’m very rarely right, though, so I’ve stopped guessing. I just like easy-going customers who aren’t entitled or too picky. Mojo121
On a nice sunny day on the South Coast, what could be better than heading to the beach with a couple of Suzuki Jimnys? That was Jack Evans’s job as part of a feature you’ll see later on in the magazine and he had a great time with old and new examples of the car. Quite why his hands are in the air though, we’ve no idea...
Nothing went wrong, I just got fed up with the space I had, couldn’t find the right set-up, so took some time out in the sun. I’m not friendly, I’m a miserable so-and-so! XFS
which is finding the quality stock which affords me to operate in this way and sell at a premium. awc1000
You’ll fit right in here then, welcome back! Blenheim Car Sales I genuinely couldn’t care less who buys what or how they pay. I just try to sell as many as I can each month. SC Derby Sounds like you have already sussed things out, XFS. Like me, it sounds as though you have the luxury of choosing. I don’t even think about who my market is. I stick to the priority of this job
I can’t see how you can choose a target market these days as everyone’s online looking at adverts. All customers are different. Some think they know how it all works, others haven’t a clue but if they can pay, they are very welcome. You can’t judge a book by its cover these days, either, not like a few years ago. I have had some dodgy-looking characters come to view cars, but they are the nicest people ever, whereas some suited and booted types are horrible. How do you not sell locally? Wait till the invoice is filled in and ask them to leave because they are too close? I like all people providing they have the money to spend.
Sub-prime finance people are becoming the norm now, too, but they’ve been to ‘Rent Some Dosh Ltd’ and will pay you by debit card, cash or bank transfer. Regards kids, if a man comes in and likes the car but wants to bring the wife or girlfriend back – and they come back with two kids, at what age are they asked to leave ? We would all like to achieve your ideal sales model, but it’s really not like that nowadays – in my opinion, anyway. All the best with your chosen selling model though, hope it works well. David Horgan Hi XFS. You are clearly a hardened pro and not an amateur. I have to admit I was discouraged from putting up a ‘no free-range kids notice’ in our warehouse years ago. Sounds like you may be offering Basil Fawlty-like customer service. If it works, who are we to criticise? trade vet As long as people are not complete idiots, I don’t mind selling them a car. I remind them of this if they start getting a bit funny if anything ever needs fixing. Nice, polite people do well from us and get the best service by far. Rory RSC It’s your baby, XFS, it’s your life, you work how you want to and ignore anyone who tells you different. You sound like a mirror image of me. Best of luck to you. Arfur Dealy Thanks for the replies. I guess I’m not relying totally on this for my income which means I do have the luxury of not being under pressure to sell. Having said that, I found previously that failing to make a profit on a car really hurts. I don’t really remember the cars I made big profits on, but I do remember very well a particular Porsche I lost money on. I have it as a screensaver on my phone to remind me. XFS
Top tweets Land Rover has handed over the first of a Highways England fleet of 70 Discoverys, which will begin patrolling England’s motorways and A-roads this month. Keep an eye out for them! Inchcape Land Rover (@inchcapeLR) The seductive all-new Peugeot e-208 has it all. Its distinctive and exclusive touches embody technology and modernity. Robins & Day @robinsandday
34 | CarDealerMag.co.uk
#SEAT’s biggest product offensive has reached its climax with the introduction of the brand’s new flagship model, the #Tarraco. Marshall Motor Group @MarshallGroup Honda, part of Vertu Motors plc, has partnered with Forces Cars Direct to offer preferential offers on cars for members of the armed forces and emergency services. Vertu Honda @Vertuhonda
BREAKING NEWS! The all new and improved 2019 #AudiR8 has arrived at our #Norwich Audi showroom. Robinsons Audi @RobinsonsAudi At Coys, we have a tradition of single-make Porsche auctions, dating back over the decades. These have always been titled ‘The Excellence of Porsche’, and no truer words have been spoken. Coys of Kensington @coys1919
More and more of our readers are joining the debate – and it couldn’t be
On Twitter: Follow @CarDealerMag
Forum: CarDealerMagazine.co.uk/forum
I won’t sell a car to... FINANCE
Will it pay to get a card machine? Just wondering if I could get a bit of advice on payment methods. I’m just starting out and going to be trading about three cars a month from home. On one hand, I’m reluctant to get a card machine because it’s another monthly subscription. On the other hand, I don’t want to put customers off by not having one. Just wondering what you guys have done in the past or think? JDM1983 Preferred methods: Bank transfer, cash, card – in that order. I do have a card reader as I was losing business by not having it. It also enables me to increase their budget. If we are £500 away, I can say ‘put it on a nought per cent credit card and spread the cost over some months’. Blenheim Car Sales
empowered by it or maybe they do cash because they are concerned if it doesn’t show in my account straight away, they will have to hang around, when really they just want to just pay and go. Lazz I’ve never needed a card machine in 30+ years. I go for bank transfers 90 per cent of the time because they’re free, or cash for those who have just sold theirs and have a wad. I’m not interested in a card machine and definitely not interested in those who only pay by credit card. Arfur Dealy
I sell stuff from home up to approximately £6k. I only do transfers or cash and don’t have a card machine. I don’t feel as though I have missed anything. I prefer a transfer as it saves me a trip to the bank but some customers insist on paying cash. I think they may feel
How do you pass the time on days when it’s quiet? Sometimes it’s nice to do ‘nothing’. Just being around the family is nice. My old dad’s nearly 90, I make the most of it. My daughter is 21 this year, it only seems like yesterday I was fetching her home from primary school. Where does the time go? met Catch up on jobs that the Mrs keeps nagging me to do. Mikey360 What’s a quiet day? We are constantly chasing our tails and never really get any opportunity to relax apart from the odd Sunday. MarkTVS Well done to anyone who has spare time. I can’t remember the last time I completed my daily list of things to get through. I had 23 items to attend to today – so far I am on number six. It’s not looking good as I have to finish at three. justina3 I started playing chess for a while which was great but it got to a level where it was that hard (everyone was too good and five moves ahead or more), it got more stressful than the actual job. So I stopped. SC Derby
Do I have to take car back because of bonnet issue? I’ve always tried to do the right thing when it comes to customers coming back to me with complaints and issues regarding vehicles they have bought from me. Sometimes I’ve probably been too generous, but in a small community it helps to have a good reputation. Today, however, I have had a lady contact me 29 days after purchase to say that she wants to return the vehicle as it has a faulty bonnet catch and she can’t open the bonnet. I have offered to repair the catch, but she is pursuing the line of, ‘I can reject the car and get a full refund if it’s less than 30 days post-sale.’ My question is – is this a valid reason for returning the car? Some pieces of advice I have read suggest that no, it isn’t a valid reason and it should be dealt with under warranty, which is my stance. Other advice to the consumer suggests that they don’t need a valid reason and can ask for a full refund if it is within the 30-day period. Advice welcome. Handjamjack
lt sounds to me that under the Consumer Rights Act, you are not responsible for this issue as it’s just one of those things that can happen. However, as a fair and professional dealer, you could say that you are more than willing to have the car back, have the bonnet catch fixed quickly at no expense to the customer and will even have the car washed by your local valeters. A £10 minivalet sometimes goes a long way. Worth a go. Rory RSC It needs to be a pretty serious fault to entitle her to a no-questions-asked refund. Mojo121 She wants to reject the car because the bonnet release doesn’t work? Sounds strange, are you sure there’s nothing more to this? As a car owner, she should be checking levels weekly. Waiting 29 days to check under the bonnet, to then find the release doesn’t work, sound fishy. Tim H
The saga continues – I’ve just had a call from the person in question. It appears that the car made a loud bang when they tried to start it today and now it won’t start at all so please can they have their money back. I’m getting an independent mechanic to collect the car and examine it in situ just in case there’s any jiggery pokery going on. Handjamjack Film it as it’s collected, and every step of the way, would be my advice. Dave2302 The battery had exploded and she wasn’t making it up. We fixed the bonnet catch in a couple of minutes with some WD40, put a new battery on, took the car back and sold it again. Handjamjack Sold it again, that’s the way to do it. David Horgan
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CarDealerMag.co.uk | 35
Dashboard. Around the world Dealer news from somewhere other than here
AMERICA
THE PSA Group is planning to return to the States with the biggest player in its portfolio, Peugeot. The company, also known for its Citroen, DS, Opel and Vauxhall brands, will try to gain a foothold in the American market from 2026, when it will begin shipping in vehicles from Europe or China. The website Bloomberg notes that the decision marks a rare show of confidence in a US automaking industry which has suffered lately because of trade wars and slowing economic growth.
CANADA
WE’VE reported on this issue before – and it’s happened again. New Ford vehicles have been shipped from Mexico to Canada with drugs stashed inside their spare tyres. Authorities were alerted when staff at a dealership in Ontario discovered packages containing the contraband. More were found elsewhere in the state of Ontario as well as in Quebec and New Brunswick. In total, 180kg of methamphetamines were found, worth £2.6m.
SPAIN
SEAT’S factory in Martorell, near Barcelona, has reduced its water consumption per car produced by 31 per cent in the last eight years. The feat has been achieved by using cutting-edge technology and more efficient processes to reuse and recycle water, particularly in the plant’s paint workshop and rain test booth.
CHINA
BUSINESS might not exactly be booming for car dealers here in the UK – but things are even worse in China which has been hit by the ‘worst car market slump in a generation’. Discounts of up to 10 per cent are commonly being offered to customers as dealerships battle to entice people through their doors. Shi Jianhua, a deputy secretary general of China Association of Automobile Manufacturers, said recently: ‘2019 should be a year of the survival of the fittest and we may see more merger and reorganisation cases in the auto industry.’
SOUTH AFRICA
A CROOK who has twice targeted car dealerships in Port Elizabeth is at large. In October last year, the suspect obtained a Ford Ranger Wildtrack from a showroom by producing bogus documentation to show he had ‘paid’ for it via a bank transfer; while in a second incident, earlier this year, he tricked a member of staff and vanished with a Renault Sandero during a test drive.
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CarDealerMag.co.uk | 37
Finance. SURVEY
UK car buyers are ‘shifting towards online financing’
OPPORTUNITY
Jigsaw targets growth in wake of FCA report
C
ar buyers in the UK are finding more of their financing online. That’s according to the second annual survey on auto financing carried out by analytics software firm Fico, which showed that: l 21 per cent of UK buyers got their financing online versus just 15 per cent last year. l Of the nine countries in Europe and the Americas surveyed, only Chile saw more respondents getting loans online (24 per cent). l 37 per cent of UK car buyers said they would prefer to apply online the next time they buy a car. The survey of 2,000 consumers across the UK, US, Canada, Mexico, Chile, Australia, New Zealand, Germany and Spain also showed that UK car buyers got their financing faster than any other country except Germany, which tied with the UK. Fifty-five per cent of respondents got their financing in less than 30 minutes. However, this was less than last year, when 63 per cent of buyers waited less than half an hour.
UK car buyers still found the process easier than people in other countries though, with 82 per cent finding it easy, just above Germany (81 per cent) and Mexico (80 per cent) – and well above the USA at 68 per cent. Steve Hadaway, general manager for Europe, the Middle East and Africa at Fico, said: ‘Consumers are taking greater control of the auto financing
process. They are moving online in their search for a better deal. ‘Those lenders that can instantly offer a superior financial package based on analysis of the applicant’s data stand to gain.’ The respondents were aged between 18 and 64 and all obtained a loan or lease on a new or used vehicle within the past three years.
STARTLINE MOTOR FINANCE
Jobs boost as customer services moved in-house UP TO 50 new jobs are being created by Startline Motor Finance this year as the business transfers its customer services function in-house. The move will also see a doubling of office space with an additional 7,500 square feet taken at the company’s Skypark One headquarters in Glasgow. Paul Burgess, CEO, explained: ‘Since our inception, we have outsourced our customer services function. However, the timing is right for Startline to
38 | CarDealerMag.co.uk
assume responsibility for our portfolio internally as the business matures. ‘Customer services includes all of the activity that might be needed by customers during the life of their finance agreement, from changing direct debit details to asset management. ‘All our stakeholders are keen to make a success of this transition. The move will give us greater control over the customer journey and help us continue to drive our service
standards. It is an exciting change and also a vote of confidence in the quality of staff that we believe we will be able to recruit in and around Glasgow, with the hiring process already under way.’ Startline is expanding rapidly. During 2018, it doubled the number of staff employed to 80, moved into offices that were more than twice the size of its previous premises, and ended the year with business volumes up by more than 20 per cent.
INDUSTRY broker Jigsaw Finance says the Financial Conduct Authority’s report on motor finance is an opportunity for growth. Business development director Mel White, pictured, said: ‘Undoubtedly, the motor finance model will change markedly in the weeks and months ahead. ‘Changes to the commission model look set to reduce the direct financial benefit of finance, while there will be greater levels of transparency, regulatory scrutiny and probably accountability for dealers. ‘At the same time, dealers cannot ignore the increasingly vital marketing role afforded by finance to sell vehicles. In this changing market, the role of the highly focused dealer finance broker is set to become even more important.’ Jigsaw has announced growth plans via its remote business manager service, Finance Assist, as well as an increase in its field-based presence with the addition of more agents, including business managers looking to switch from a dealer to a broker role. Ben Garside, p39
IN ASSOCIATION WITH
Time is money BEN GARSIDE
A monthly look at the world of automotive finance and marketing
I
FCA is on the warpath so expect sweeping changes across industry
’m currently sitting in London following a conference entitled Digital Results in Financial Services and reflecting on the content and the changes ahead. Having worked in car finance for almost 15 years, I’ve been through many environmental changes and market conditions, and working in marketing for quite a bit longer than that, I’ve also seen a lot of unethical practices. The Financial Conduct Authority (FCA) has been on the warpath to clean up some of these bad practices, and I reckon this is just the tip of the iceberg to ensure our trade is ‘treating customers fairly’. Recently, the FCA released its final findings report on motor finance, and I believe this will have turned a few heads with regards to difference in charges (DIC) commissions, commissions practices regarding disclosure, and broker/dealer impartiality. The FCA stated that ‘change is needed across the market, to address the potential harm we have identified’. With this in mind, I believe we will see wholesale changes throughout the car finance industry over the next 12 months, with car finance companies being pushed into either a scaled or flatfee commissions structure. As well as this report, there has also been an increase in the number of motor dealers being contacted by the FCA regarding financial promotions, as it has concerns about their social media advertising. In its November 2018 Regulation Round-up, the FCA wrote: ‘Our financial promotions team has intelligence that some motor finance firms are not complying with our rules in CONC 3. This is
particularly in relation to posts on social media platforms such as Facebook, Twitter and Instagram. ‘The main issues we have seen include not displaying a representative example when triggered, not making the representative APR prominent, not mentioning the legal name of the firm, not displaying or a lack of prominence of the credit broker statement [and] displaying monthly costs for a vehicle without indicating whether this is based on a credit or hire agreement.’ Almost three years ago, I wrote about the FCA’s Clear, Fair & Not Misleading criteria and said that within the motor trade we had to be careful with every promotion and should be focused on giving good customer outcomes. Well, now I’m reiterating this! Every car finance advertiser should be adhering to the regulations and if you aren’t, well, expect to be visited or contacted by the regulator – and please be careful who you take advice from as well. I have seen agencies offering incorrect advice on dealer forums and social media pages, completely ignoring the regulations – and even stating that there aren’t any regulations! I advise anyone in our market to read CONC 3 and acquire a thorough knowledge of what’s required. There’s also FCA guidance on its expectations regarding social media – go online to bit.ly/so-me-guidance If you still feel unsure, speak to one of your providing finance companies. They can give you guidance and advice on your promotions. Remember, though, that you’re still responsible for signing off your advert and must have a process in place to do so.
‘Every car finance advertiser should be adhering to the regulations. If you aren’t, expect to be visited or contacted by the regulator.’
Ben Garside is marketing manager for First Response. Call him on 07817 518739 or email ben.garside@frfl.co.uk
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CarDealerMag.co.uk | 39
Dealfinder.
Finance. YOUR ESSENTIAL GUIDE TO SMALL CROSSOVERS
Nissan Juke
Volkswagen T-Cross
THE Nissan Juke has been a huge success for Nissan and UK carmaking in general, with the one millionth vehicle rolling out of the manufacturer’s Sunderland production plant last July. The range-topping Tekna is absolutely loaded with standard equipment, including an around-view monitor. We’ve chosen it with the 110bhp 1.6-litre petrol engine. Buyers can currently get a £3,000 contribution, to which they add £3,375. Over a three-year deal, it offers the cheapest monthly payments of the cars here, with 36 monthly payments of £224 required. This means that at the end of the three years, a total of £11,439 will have been paid by the customer. Should the customer want to keep the car, they’ll then need to pay £7,861, taking the total to £19,300. This works out at an impressive £1,310 less than the £20,610 list price for cash buyers.
THE spacious, stylish and refined T-Cross – one of the segment’s newest entries – is Volkswagen’s smallest crossover. It’s only just reached showrooms but is already an attractive proposition. We’ve selected the 113bhp 1.0-litre petrol engine in SE L grade, which has sat nav and front and rear parking sensors as standard. Volkswagen is offering a £1,000 deposit contribution, to which the customer adds £3,407.63. They then make 35 monthly payments of £275.22, which by the end of the deal brings the total payable by the customer to £13,040.33. Should they decide to keep it, the buyer must make a final payment of £9,820.80 plus a £10 option-to-purchase fee, which brings the overall sum to £22,871.13. This makes the T-Cross cost £1,216.13 more than the £21,655 cash price because of Volkswagen’s 5.9 per cent APR rate.
NEW PRODUCT
Blue Motor Finance launches tailored funding platform B
lue Motor Finance has launched a tailored stock lending product to support motor dealers. A review by the firm showed that more than half of independent dealers currently felt held back by incumbent providers when trying to obtain funding to support their business. Blue – which was recently named by the Financial Times as the fastest-growing business in Europe for 2018 – developed the new product to provide dealers with a simple and flexible route to accessing stock finance. The new lending facility will let them finance new stock investments on their forecourt and is a form of secured SME lending made easier by advanced technology. By leveraging in-house-built AI technology,
40 | CarDealerMag.co.uk
by DAVE BROWN @CarDealerDave Blue’s new product resolves an ongoing issue of access to growth finance, and offers a simpler, faster alternative. The platform also lets users manipulate the product in the most effective way possible and secure stock finance on terms aligned to their individual needs. Chief operating officer Chris Jones said: ‘The launch of Blue’s new SME lending product is a critical stage in our development as a company. ‘Independent dealers have historically had to deal with a complex and burdensome process to secure the finance they require to grow their stock.
‘This had the dual effect of hindering both their ability to grow their business and reducing the choice available to end customers. ‘With the expansion of our unique lending platform, we anticipate a decisive shift in the market, with UK motor dealers empowered to make additional investments in their businesses.’ Dealers who have tried out the new product seem impressed. One commented: ‘I’ve been in the industry for 28 years and rarely do I get excited about a new product or way of doing business – but the new funding platform from Blue Motor Finance will change the way dealers fund stock and is significantly different from any other product or offering in the market today.’
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Hyundai Kona THE Hyundai Kona is one of the better-driving models in its class, and good value for money as well. It’s even available with an all-electric variant and an Iron Man-inspired special edition, although our choice here is the 118bhp 1.0-litre petrol engine in Premium trim. This comes with large 18-inch alloy wheels, reversing camera, keyless start and entry and an eight-inch touchscreen with satellite navigation. Hyundai is offering a £1,000 deposit contribution, joined by the customer’s £3,300. Over the three-year deal, the customer will fork out 36 monthly instalments of £238.28, which takes the total paid at the end of the contract to £11,878.08. Should they choose to buy their Kona, a final payment of £8,842.50 can be made by the customer. This brings the overall amount to £20,720.58, which works out at £815.58 more than the £19,905 on-the-road price.
FLA
BMW
New business in consumer car finance market rises by volume and value
Double gold delight over Investors in People accolade
NEW figures released in April by the Finance & Leasing Association show that new business in the point-of-sale consumer car finance market increased two per cent by volume and six per cent by value in February 2019 compared with the same month in 2018. The percentage of private new car sales financed by FLA members through the point of sale (POS) was 91.1 in the 12 months to February – which was 0.1 of a percentage point lower than in the same period to January 2019. The POS consumer used car finance market reported new business in February up two per cent by volume and seven per cent by value compared with the same month in 2018. FLA chief economist Geraldine Kilkelly, pictured, said: ‘We continue to expect new business volumes in 2019 overall to be at a similar level to 2018 if there is a reduction in Brexit-related uncertainty.’
BMW Group Financial Services has been awarded the Investors in People gold accreditation for the second time. It recognises its commitment to high performance through good people leadership. Mike Dennett, chief executive of the Farnborough-based retail and commercial finance provider, said: ‘We are delighted to be awarded the gold standard for the second time in succession by Investors in People. ‘It’s testament to the hard work of the entire team. ‘As a business, we are incredibly focused on creating a customercentric environment in which our team can thrive. ‘Through sharing best practice, embracing a collaborative culture and committing to learning and development, we ensure that our employees feel fully engaged, rewarded and empowered.’
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Forecourt.
FIRST DRIVE
Skoda Scala
THE KNOWLEDGE
Skoda is making another foray into the busy hatchback segment with this – the Scala. Can it fend off key rivals? Ted Welford heads to Croatia to find out. What is it? The Volkswagen Group is pretty good at churning out some of the best family hatchbacks in the business. Volkswagen has its Golf, Seat its Leon and Audi its A3. But where does Skoda fit in? Well, now we have this – the all-new Scala. Offering class-leading practicality, a well-built interior, loads of standard equipment and an affordable price tag, it could help get Skoda back into the minds of family hatchback buyers.
What’s new? Taking advantage of the MQB platform used across Volkswagen’s family of brands, the Scala is essentially an all-new model and a vast distance apart from the Rapid, even if Skoda is keen to point out that it doesn’t ‘replace’ that model. Aside from introducing a new style language, the Scala’s key improvement is the cabin, where a touchscreen size of up to 9.2 inches is offered alongside a 10.25-inch digital virtual cockpit, which are both some of the largest screens in this class. The VW Group’s latest MIB3 infotainment package is also offered, which boasts a host of new connectivity services.
What’s under the bonnet? There are no surprises when it comes to powertrains, with the Scala being offered with three of the 42 | CarDealerMag.co.uk
Volkswagen Group’s staple engines. The 1.0-litre petrol engine is expected to account for the majority of sales – particularly in its 113bhp guise, which is the car we tested. The three-cylinder turbocharged unit is willing and – despite its modest power output – still able to accelerate the Scala to 60mph in under 10 seconds, and keep it going on to a top speed of 125mph. An 84bhp 1.0-litre unit and a 148bhp 1.5-litre engine round off the petrol line-up. A diesel unit is also offered, which delivers 113bhp and comes with the option of a manual or DSG automatic transmission.
What’s it like to drive? Expect the Scala to offer the same level of thrills as the Ford Focus and buyers will come away disappointed – however, it’s ideal for those in the market for a comfortable cruiser. The Scala is a refined car under steady acceleration and delivers one of the most accommodating rides in its class. Larger alloy wheels don’t affect the ride quality either. An optional ‘Sport’ mode is offered, although we don’t see the need to ever use it.
How does it look? Skoda has gone down a slightly different path with the Scala’s styling and it’s a direction that’s worked. But sure, it’s still
immediately recognisable as a Skoda with its high bonnet line, flowing lines and hexagon-shaped grille. Our only real gripe about the way the Scala looks, as with many new models, is that the radar sensors for the suite of safety features are poorly integrated into the design behind the front grille. It looks untidy.
What’s it like inside? The Scala undercuts the best-selling Golf in terms of price by quite some margin but its interior doesn’t feel that way. Skoda’s rounded off the cabin with plenty of soft-touch plastics and it looks like a model that occupies a more premium sector than it does.
What’s the spec like? The range kicks off at £16,595, or roughly the same as a mid-spec supermini these days. And despite its cheap price, plenty of kit is still offered as standard. Gone are the plastic wheel trims you would typically find on the entry-level ‘S’ version, and instead it comes with 16-inch alloys, as well as a 6.5-inch touchscreen, LED headlights and autonomous emergency braking. Splashing out an extra £1,185 pays for the SE, which adds even more kit. Rounding off the range is the SE L, which costs from £19,580. This brings treats such as keyless entry, climate control, a digital
Model as tested: Skoda Scala 1.0 TSI 115 SE L Price as tested: £20,385 Engine: 1.0-litre turbocharged petrol Power (bhp): 113 Torque (Nm): 200 Max speed (mph): 125 0-60mph: 9.6 seconds MPG: 56.6 Emissions (g/km): 113 TARGET BUYERS: Sensible types wanting a comfortable and practical family car. THE RIVALS: Ford Focus, Vauxhall Astra, Kia Ceed. KEY SELLING POINTS: 1. Loads of equipment fitted as standard. 2. Competitively priced. 3. Very comfortable. DEAL CLINCHER: Everything Skoda has become known for, just with extra style. ‘virtual’ cockpit and a large 9.2-inch touchscreen with satellite navigation and connected services.
What do the press think? Top Gear described the Scala as a ‘nicely judged hatchback’. Evo said: ‘The infotainment is quick-witted, simple and clear.’
What do we think? The Scala is everything we’ve come to expect from a modern Skoda. It’s good to look at, hugely practical, comfortable, and the firm’s longlasting principle of value remains.
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Forecourt.
FIRST DRIVE
Honda HR-V Sport
THE KNOWLEDGE
Honda has attempted to breathe some sporting pedigree into the HR-V. Has it succeeded in making it more involving? Ryan Hirons finds out. What is it? Honda knows a thing or two about making a hot hatch. There is, of course, the legendary Civic Type R, which has repeatedly been at the forefront of the market throughout its 18-year life in the UK (and 21 years globally), while the Integra is widely regarded as the best-driving front-wheel-drive car ever made. Now, in a market dominated by crossovers and SUVs, it’s tried to add a similar sprinkle of magic dust to that segment with the HR-V Sport. Has it captured some of the spirit of its forefathers, though?
What’s new? There’s certainly more to this car than just a racy-ish trim package. Under the skin, Honda has strapped a turbo to its 1.5-litre four-cylinder engine, which, at least for the HR-V, is an exclusive to Sport grade. To help cope with the introduction of ‘boost’, there’s been some fettling of the suspension too. Of course, there are visual changes – with new black gloss highlights to be found all round, as well as a honeycomb grille for a more impactful look.
What’s under the bonnet? Powering our Honda HR-V Sport test car is a 1.5-litre turbocharged petrol engine, which develops 180bhp 44 | CarDealerMag.co.uk
and 240Nm, here sent to the front wheels via a six-speed manual gearbox (a CVT is also available). The result is 0-60mph in a respectable 7.6 seconds, with a 134mph top speed also possible. As for efficiency, Honda claims 47.9mpg on the combined cycle while emitting 135g/km of CO2.
What’s it like to drive? This may be a bit of a shock – it was to us too – but the HR-V’s ‘Sport’ credentials extend beyond marketing. It’s a genuine joy to drive, with steering well weighted when pressing on and little in the way of body roll under harder cornering — yet its set-up is soft enough to ensure it’s not overly firm.
How does it look? To the untrained eye, this is just going to look like any other HR-V in the range – but Honda has made some tweaks to try to make the Sport stand out from the crowd. Most noticeable is the array of gloss black highlights in place of chrome trim around the car, while a honeycomb grille takes centre stage. That and its 18-inch alloy wheels aside though, there’s not too much to separate it from the regular HR-V. A model-specific Modern Steel Metallic paint finish is also available at a cost of £525.
What’s it like inside? There are no radical changes to the interior of the Honda HR-V Sport, although a new black fabric and dark red faux leather combination interior is available in the car. It looks great at first glance, although in typical budget Japanese car fashion that’s undone when it comes to the touch. There’s an element of cheapness to the way the materials feel thanks to hard plastics, a not particularly convincing leather effect and clunky controls in the centre. Five people can be seated inside, although we suspect not particularly comfortably if you’re planning to carry three adults in the back.
What’s the spec like? On top of all the go-faster bits, Honda has brought a generous level of equipment to the HR-V Sport at no extra cost. Luxury items include LED headlights, ‘smoked’ tail-lights, heated seats, automatic wipers, adaptive cruise control and its ‘Connect’ infotainment system displayed on a seven-inch display with Garmin satellite navigation. There is also the Japanese manufacturer’s ‘Sensing’ suite of safety kit – bringing forward collision warning, lane keep assist and departure warning, traffic sign recognition and collision mitigation braking at no premium.
Model as tested: Honda HR-V Sport Price as tested: £28,120 Engine: 1.5-litre turbocharged petrol Power (bhp): 180 Torque (Nm): 240 Max speed (mph): 134 0-60mph: 7.6 seconds MPG (combined): 47.9 Emissions (g/km): 135 TARGET BUYERS: Customers who want to get on the crossover bandwagon but fancy something a bit spicy. THE RIVALS: Nissan Juke Nismo RS, Seat Arona FR, Mazda CX-3. KEY SELLING POINTS: 1. Engaging drive. 2. Good equipment levels. 3. Strong engine. DEAL CLINCHER: Makes an otherwise okay car a lot of fun.
What do the press think? Autocar described the HR-V Sport as ‘a pleasant and vice-free alternative to high-spec crossover rivals’, although The Telegraph said it’s ‘the answer to a question nobody asked’.
What do we think? Honda has made something seriously fun and genuinely interesting in the HR-V Sport. It’s a car that was once just another crossover that now has an appealing option in its range that will put actual smiles on anyone’s face on the right road.
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Feature.
UTILITYTHRILLS Two Car Dealer writers and two very popular (but very different) SUVs go on a road trip to meet the dealers struggling with demand...
T
here might be little in common between the diminutive Suzuki Jimny and the rather large Lamborghini Urus at first glance – apart from the fact they’re both SUVs and both had the misfortune of turning up at our office at the same time, writes Car Dealer editor Rebecca Chaplin. However, they’re both quite striking to look at, and arguably unlike anything else on the market now or ever before – and not just because they were dressed up in bright green and yellow. Both have four-wheel drive, and buyers will find themselves waiting a long time if they want to get hold of either. But the biggest similarity has to be the fact they have taken their prospective markets by storm, and we wanted to find out more – ‘we’ being Car Dealer’s Dave Brown and myself, with me kindly volunteering to find out what the Lamborghini has to offer, while surprising Dave on the last day of his holiday by telling him that the following morning he would need to head out on the trail of Suzuki sales in the brand’s dinky Jimny SUV.
at the moment. Its success would appear to be down to two things: a range of capable, wellbuilt and reasonably priced cars, and the fact that the manufacturer is extremely close to its dealer network. It seems to be a business run in a friendly way, with no standing on ceremony or cumbersome tiers of unnecessary management.
Dave: Yes, that was a bit of a surprise, Becca! There I was, relaxing with my old mum on Mothering Sunday when the text came through – I’ll paraphrase but, ‘Hi Dave, tomorrow you’re driving a Suzuki Jimny to the brand’s HQ in Milton Keynes – is that OK?’ So, a day out of the office and a road trip to the land of the concrete cows beckoned. True, from our base on the south coast, that was going to be a bit of a schlep – the Jimny isn’t really designed for long hauls up the A34 – but no matter: I love the car and was looking forward to the adventure. In actual fact, I’m an admirer of the Suzuki brand overall. The Japanese manufacturer is doing well in a new car market that is struggling
Becca: Dave might have drawn the short straw for price and comfort – with the Urus costing a mere £145,000 more than the Jimny if it were in base spec – but I would be doing the longer distance in my supercar SUV. My journey would take me to the uber-luxurious location of... Birmingham. Surprisingly perhaps, this is a top location for Lamborghini sales, and Sytner would be reopening its largest showroom in the UK with all-new fixtures and fittings that evening. This would be my first time up close with the Urus, and I’ve got to admit it wasn’t a car that I was particularly enamoured of when the first photos of it were revealed. But in the metal – and seeing it on the road – its design certainly comes
46 | CarDealerMag.co.uk
Dave hits the road, heading for Milton Keynes to life. Behind the wheel, this is a car that makes a lot of sense, too. In my dreams, I picture myself as the wealthy owner of a fleet of supercars, but they just wouldn’t be practical for everyday life. I would need something else to accommodate my growing family but with as much eye-catching appeal as my other cars, and the Urus would be the ideal solution. (Who would want anyone to think they could only afford a Porsche Cayenne or Range Rover, anyway?)
‘They’re both quite striking to look at, and arguably unlike anything else on the market now or ever before.’ Rebecca Chaplin
Dave: Monday morning arrived and a colleague had helpfully dropped the Jimny off at my house for my 230-mile round trip. It attracted some quizzical looks from my neighbours, one of whom asked: ‘How does it drive?’ ‘I’ll let you know in about eight hours,’ I replied as I hopped in. One of the most overused words in the motoring world is ‘iconic’ but it definitely applies to the Jimny. The little off-roader was conceived as a four-wheel-drive mini able to tackle rough terrain and go where cars couldn’t go in the past. The first incarnation, the LJ10, was born in 1970, and being the one and only authentic offroader in the Japanese mini-car segment, it was a sensation. Fast-forward half a century and the fourth-generation Jimny has, not surprisingly, evolved enormously. Some things haven’t changed, however, with functionality and practicality still the watchwords in terms of both its appearance and performance. It has inherited from its predecessors all the key essentials for serious off-roading and it’s simple and beautiful, in a quirky kind of way.
The example loaned to us was definitely eyecatching, with its high-visibility Kinetic Yellow paint job. British car buyers can’t get enough of the Jimny – quite literally. On arrival at Suzuki’s Milton Keynes HQ, I was about to find out that demand is outstripping supply in a pretty big way. Becca: I’ve been behind the wheel of a few garish cars over the past few weeks, but nothing has attracted as much attention as the Urus. Even driving on the quiet roads around Car Dealer Towers, passers-by were filming me on their phones – although the bright yellow paintwork and Italian number plate definitely didn’t help me. On the day of my trip to Birmingham, one passenger in a Renault Kangoo on the M40 was so interested – possibly thinking I was an Italian heiress – he held a piece of paper up to the window saying ‘bon journo’ [sic] as the car in which he was travelling attempted to overtake. While the Urus gets all of the looks, from the driver’s seat it is lacking some of the passion you’d experience in one of the brand’s supercars.
It has all of the high-end fashion details that you’d expect in a Lambo (if you’re into Versace or Gucci), the complicated switches that definitely didn’t mean I accidentally put it into reverse when I was going for ‘Sport’, and the fierce V8 growl. In some ways, however, it feels that by putting in the four-wheel-drive ability, it’s lost some of the excitement and unruliness you’d expect. Although skating my way up the motorway in some torrential British rain, maybe that was for the best. Dave: Bearing in mind this trip was so hastily arranged that it could have been organised by the people behind lastminute.com, the guys at Suzuki were remarkably well prepared for my arrival. The brand’s UK headquarters wouldn’t win any design awards but the welcome inside was warm and I was ushered upstairs for a quick coffee and a sarnie in the staff canteen. I was there to meet Robin Appleyard, the managing director of the Yorkshire-based dealership group founded by his dad, Colin, and bearing CarDealerMag.co.uk | 47
Feature. his late father’s name. But first there was time for a quick catch-up with Suzuki’s public relations chief Alun Parry over a cappuccino. It was then I found out just how well this latest Jimny had been received. ‘Demand is staggering,’ he said, ‘and we’re doing our best to meet it. We’ve got 42,000 previous Jimny owners, and even if 10 per cent of those wanted a new one that would still be more than the allocation we’ve got. The style of the car is helping to bring new conquest people in and it’s great news for us. ‘It’s creating a lot of traffic with the previous car as well. People know they’re going to have to wait quite a while for a new one, so they’re going into an old one at the moment. That’s the way it is – it’s a tricky one. We’d love to have more, and if we can get more we’ll jump on them. But if I’m honest with you, it’s unlikely at this time.’ Alun explained that the first batch of new Jimnys had been allocated to dealers across the country with the same process about to take place for the second consignment. After that, he said, ‘we’ll be looking at September – but ultimately it’s only going to be 1,200 to 1,300 cars, which is far fewer than we need’. One nice spin-off, he explained, was that potential Jimny customers who don’t fancy a long wait might choose another car from the Suzuki range such as Vitara or Ignis. Becca: ‘Last month was the best month ever for Lamborghini in the UK,’ Andrea Baldi, CEO of Lamborghini for the EMEA region, told me once I’d arrived in Brum. ‘However, in a way this is down to availability of product. You see, we always measure the performance in relation to deliveries and maybe we shouldn’t because unfortunately if you want a Lamborghini today you’ll have to wait in most cases.’ Baldi has flown over for the opening of this renovated site in Birmingham, one of the most important in his region. I’m talking to him in a glass-walled office overlooking the adjoining Bentley site while the last stages of the build for that night’s party are still under way. As he said, Lamborghini customers might have to wait for their next supercar – and you’ll have to prove yourself as a loyal buyer if you want to get hold of one. Already in the UK, the Aventador SVJ has sold out in weeks and those wanting a Urus today will have to wait 10 months. Meanwhile, Performante deliveries are still being made from orders placed a year ago, he says. Right now, Birmingham Lamborghini looks like the office party of the century, with light rigs going up and occasional blasts of music being tested. Cases of champagne and wine are being carried through into the dealership and many busy people seem to be running around and checking everything is ready. Upstairs in the conference room, it’s a sea of calm and Baldi is just as relaxed as he lets one of his trusted dealers get on with things. 48 | CarDealerMag.co.uk
A quick coffee for Jimny driver Dave who found out about the incredible popularity of the car ‘You have to consider that the old dealership design has been in for more than a decade so this is quite a significant change,’ he says. ‘The idea isn’t just to have new materials and colours though. It’s really going into a new dimension of the business case for Lamborghini. ‘We’ve moved from a business model in the first 40 years with a single model sold in very few units a year into one where we have three different models and several derivatives. ‘We have moved in the last eight years from 1,300 cars to around 8,000. So clearly you need more space to display more models, but also we have pre-owned cars to display.’ The Urus I drove here today has now taken pride of place at the front of the dealership, making for a stunning display of close to £1m in just four parking spaces. This new model plays a huge part in the growth of the brand and why a new look for the dealerships is so important. ‘Birmingham together with other dealers in the UK are some of the biggest dealers we have in the world in terms of the numbers of cars delivered. ‘The UK is now our second biggest market
globally, and if you consider that we only have 10 dealers in the second biggest market, you can imagine that they are on average very big. ‘The US is the biggest market in the world for Lamborghini and they have more than 40 dealers, so you can imagine that these 10 dealers are doing pretty well.’ Dave: Lunch over, I was told that Robin Appleyard was now free to talk to me, so the main part of the day’s business was able to get under way. Chatting with me in a nicely appointed meeting room, he confirmed everything that Alun had said a few moments previously. Before we got on to all things Jimny though, there was time for a quick Colin Appleyard briefing – and a reminder that the Yorkshirebased company was celebrating its 40th anniversary with Suzuki. Its growing portfolio includes state-of-the-art Suzuki dealerships in Keighley, Huddersfield and Ashton-under-Lyne, as well as its newest showroom in Bradford.
'Demand is staggering and we’re doing our best to meet it.' Alun Parry
‘Sometimes when you purchase a product you are one of the many – for us, it’s not like that.’ Andrea Baldi
The impressive Birmingham dealership This makes it one of the vehicle manufacturer’s largest retail groups in the UK. It is responsible for generating around five per cent of all the brand’s UK sales, and to date has sold and delivered more than 35,000 new Suzuki cars and 4x4s. It’s a history of which Robin is understandably proud and there’ll clearly be no divorce after four decades of working together. He praises the quality and value of the cars Suzuki manufactures and tells me: ‘We’ve got a great database and we do a lot of repeat custom. As for the cars, they continue to get better and better. ‘The Jimny has captured everyone’s imagination. It’s always had strong appeal with us in West Yorkshire with our hilly landscape and many farming customers. Their off-road capabilities continue to be fantastic and the fact that you can’t get them does help the job!’ He makes the point that other Suzuki cars appeal to frustrated Jimny customers, saying: ‘We take second-hand Jimnys in part-exchange against various things. New Vitara’s on the market now. That’s four-wheel drive, as are Ignis and Swift, so there are alternatives.’
How long are customers actually having to wait if they want a new Jimny? I ask. ‘Well, there are very limited numbers,’ says Robin. ‘We have got almost a 12-month waiting list now. ‘Some will switch into an alternative but some people are set on a Jimny because it’s so niche and iconic. The old one had a cult following and that has led to a lot of interest in the new one. Whenever a second-hand Jimny comes in as a part-exchange, it goes straight back out.’ Becca: While I sip some fine Italian coffee, Baldi explains some of the other new features Lamborghini is offering to really make it stand out as the best to its very special customers. You may have heard of La Prima before – if not, it’s the name for the opening show of a new opera when all of the most important people will gather. Lamborghini customers will now be able to choose to collect their car from the factory and buy this package – bringing along all of their closest friends for the unveiling of their new car, a special presentation of it, a tour of the factory and
then a huge party with everyone working at the Lamborghini factory. I can’t think any other car handover can be quite so special. ‘For customers who have a chance to visit the factory, they understand everything that goes into producing one of these cars,’ he explains. ‘Sometimes when you purchase a product you are one of the many – for us, it’s not like that. You can see this when you go to the factory where everything isn’t that big and is focused on the details. You understand how important you are for the company and that you are part of a very small group of people who own one of these cars.’ These are all small steps in ensuring a controlled growth for Lamborghini. It’s always been very important to keep demand more than supply, and the latest results have really proved this works. ‘When you have more demand than supply, you really need to be loyal to those customers who are interested in building a relationship. ‘That’s why our relationship with our dealers is so important. They’re not just the face; they are representing CarDealerMag.co.uk | 49
Feature. Lamborghini to customers. They’re dealing with some of the wealthiest people in the world who need to understand they are getting the best,’ he says. Last year in the UK alone, Lamborghini delivered 630 units – the best result ever – making more than 10 per cent of sales from our little island, and the Urus SUV was critical to this growth. ‘We were actually looking to fill a market that was latent and we couldn’t fill, because our cars were considered uncompromising, intimidating – those are the words people would use. ‘We weren’t just looking at improving versatility with five seats or the extra space in the trunk, we also wanted to increase versatility in the kinds of terrain this could cover.’ However, Baldi says that this has been a change for the whole line-up. ‘At the same time we’ve changed Huracan and Aventador, these have both become cars with different souls. This was a big change for us. These cars have been designed to work both on track and for the daily commute – but we also wanted to make the performance more accessible in an easier way. A lot of investment in technology has made it possible to change the behaviour of the car. Today you can go faster in our cars even if you aren’t a better driver. The most important thing is you get more emotion and more fun.’ Dave: Back in ‘my’ Jimny, I decide to visit another dealership as I have time on my side for once in my life. A quick glance at Google Maps informs me that Sportif Suzuki in Witney, Oxfordshire, is ‘kind of’ on my way home so I decide to drop in to see how they are faring with the brand. I’m taking a bit of a chance but hey, I’m that kind of guy. I pull up at the dealership and walk in, introducing myself to sales executive Gareth Lee. Asked what it’s like to represent the manufacturer in 2019, he replies: ‘Very good! The brand’s a great brand and I enjoy working with Suzuki – they’re very easy to work with.’ Gareth has put in 10 years’ service at Sportif Suzuki – he has never worked anywhere else, and says that customers and employees alike tend to be very loyal. Turning to new Jimny, he says: ‘What it’s capable of is brilliant. It’s basically the old one but more refined and modernised – the old one was 20 years old, after all! I think you’ll find an awful lot of people will buy it but won’t use it to its full capabilities. But it’s its character that’s selling it – what it looks like.’ Gareth said there were around 40 to 45 people on Sportif’s waiting list for the new Jimny – but that it wasn’t actually possible to place a concrete order at the moment. Instead, he said those in the queue were regularly updated and encouraged to keep an open mind about what colour and model they would like. As I’d heard earlier in the day, the popularity of the Jimny gives Suzuki dealers a chance to persuade people into other cars in the 50 | CarDealerMag.co.uk
‘Back in ‘‘my’’ Jimny, I decide to visit another dealership as I have time on my side for once in my life.’ Dave Brown
A thumbsup from Dave as he arrives at Suzuki HQ range – but ‘the Jimny is quite unique and people really want it!’ Gareth told us. ‘There’s a bit of an exclusivity thing to it as well – we get a lot of people who want to buy it more as a toy and perhaps may not be quite so interested in it if it wasn’t quite as exclusive.’ At this point, Gareth and I were joined by Sportif MD Nick Allen, who said that a lot of people were expressing an interest in new Jimny because you can no longer buy a Land Rover Defender. ‘People are looking at Jimny and seeing Defender,’ he said. ‘In the 18 years I have been here, I have never had a higher level of interest on a new model than we’re currently experiencing with new Jimny – it’s just so frustrating that we can’t get the supply.’ Sportif has something in common with Colin Appleyard – it’s also celebrating 40 years as a Suzuki dealership this year. Becca: I take a moment and sit in among the hustle and bustle as the final preparations for tonight’s event get under way.
My next chat will be with Richard Wynn Jones, divisional managing director for Sytner premium brands including Lamborghini. It runs three sites including the one here in Birmingham and the partnership has been a fantastic success since day one. Sytner has been working with Lamborghini for more than 12 years now and Wynn Jones was responsible for bringing the franchise into the group. ‘I heard about them through our connections at Bentley, and Gallardo had been out for two or three years. We saw it as a very good fit with the Bentley brand and we had the space to do it in the dealerships we had.’ He reiterates Baldi’s point that it’s not about volume with Lamborghini, and explained: ‘What makes them so special is they’ve got supply and demand right. They keep that right and they keep the number of dealerships right in the UK, and from a business point of view that increases our margins and the residuals for the customers.’ Sytner’s experience with other brands that have gone through the same process of developing an SUV to complement their sports car line-up
Possibly the Greatest Day for Suzuki dealers?
Dave dropped in at Sportif Suzuki in Witney
Urus is hailed as a ‘supercar utility vehicle’
‘What they’ve done with Urus is create a true Lamborghini SUV.' Richard Wynn Jones
meant Wynn Jones wasn’t concerned that the addition of the Urus would be a step away from the norm for Lamborghini. ‘I think it’s working for virtually every brand,’ he said. ‘If you go back to Porsche, they were a sports car brand and they complemented that with a sports utility vehicle that was every bit a Porsche, and today over 50 per cent of Porsches sold are SUVs. Bentley have done it with Bentayga, Aston Martin are about to do it with DBX – Lamborghini are just the first supercar brand to do it. ‘What they’ve done with Urus is create a true Lamborghini SUV. It’s a supercar utility vehicle if you like. There was a gap in the market for that.’ It was more than just about giving more options to existing customers, he tells me. This additional line-up was a necessary addition to build the brand and keep dealers profitable. ‘The two-model line-up is not sustainable every year in the UK with just Aventador and Huracan. It needed a third model and hopefully there will be another in the future. ‘I would hazard a guess that in the first year of Urus deliveries over 50 per cent of them
have gone to existing Lamborghini or Bentley customers as an additional car. What it’s also done is brought a huge number of customers to the brand who didn’t experience it before.’ While the Urus is leagues away from the Jimny that Dave has been driving, it’s easy to draw comparisons about why these cars have been so crucial to their respective brands. But more importantly, it’s clear to see how the culture the brands have built with their dealers and customers has led to continued sales
SPORTIF MD Nick Allen explained how Suzuki dealers learnt Take That – ‘our new friends’ – would be getting on board with the brand after Ant and Dec's departure. He said: ‘We went to a dealer conference in Budapest. The conference itself took place in the morning and we were looking forward to the evening bash, with cocktails, dinner, entertainment and so on. ‘Dale Wyatt [director of automobile, Suzuki GB] said: ‘‘We’re going to do the awards first, so please be in the room by 7 o’clock.’’ We all walked in and could see that a band had set up their instruments. ‘We just thought it was the entertainment for the evening but then Gary Barlow burst in and that was it! We had a private party with Take That for an hour!’ Not a bad way to launch a new sponsorship arrangement and one that Suzuki dealers will Never Forget…
growth in a difficult time for the market. While Lamborghini’s touch of special treatment goes far beyond that of Suzuki’s, it’s arguably the same level of trust in the relationships they have both built that has seen these stunning results. Now for the long drive back home. I pull a ‘forgive me’ face at the workers outside who have been carefully manoeuvring the cars into line on display outside the dealership only for me to pinch the keys back for ‘my’ Urus and steal it away…
WHEN THE GOING GETS TOUGH... We take the Range Rover, Jeep Wrangler and Suzuki Jimny off road
CarDealerMag.co.uk | 51
Feature.
MUD, WET & GEARS... Jack Evans and colleagues headed north from Car Dealer’s HQ in Hampshire and out into the wilds of the Surrey countryside for some SUV-based adventures. How did their three test cars compare?
H
ow many people do you think actually take their SUVs off road? We’d hazard a guess that few high-riding off-roaders ever see fords, ditches or muddy inclines and instead spend their lives in urban environments or on motorways. And yet it’s an ever-increasing segment here in the UK. It’s why you’ll see car manufacturers adding more and more SUVs to their line-ups, because – put simply – people can’t get enough of them. So while thousands of these four-wheeldrives are hitting the roads, not many are likely to be hitting the hills. But does that mean they can’t handle the rough stuff if they need to? It’s why we’ve taken three cars from three very different price points to our favourite green lanes to see just what they’re capable of. First off, we’ve got the all-conquering Range Rover. Luxurious, expensive and powered here by a turbocharged V8 diesel, it epitomises the SUV class. Land Rover has always maintained the idea that the Range Rover can – and will – go anywhere, but we’ve come to test that out. Next, there’s the retro Jeep Wrangler. Recently overhauled, it’s now got more on-board technology than before but retains its classic, rough-and-tough aesthetic. It may look just like the old Wrangler but trust us – it’s an all-new car. 52 | CarDealerMag.co.uk
Finally, there’s the Suzuki Jimny that you may have read about on the preceding pages. A darling of the motoring world, this new model replaces a car that was in production for 20 years and, during that time, established a reputation for being unstoppable off road, despite its size. We’re here to see if that’s the case with the new one. We’ll admit to the elephant in the room – these are three cars from drastically different areas of the SUV spectrum, but it just goes to illustrate the variety you get in this segment. The Range Rover comes in at just over £105,000 while the keys to the Jimny can be yours from £15,499. The Wrangler sits smack bang in the middle at £46,940. But does price equate to better off-road capability? Not in the slightest. The little Jimny is the star of the show here. It bounds over bumps and scrambles up inclines without any hesitation. It’s got genuine off-road mechanicals too, with full four-wheel drive plus both high and low gearing. And because its overhangs are so short, it’s got great approach and departure angles too, meaning you won’t grind the front or back out when driving up or down steep slopes. There are two drawbacks with the Range Rover here. For one, it’s a big old lump, and piloting it down the tight lanes that lead to our photo location leaves you wincing as its extremities
come perilously close to the hedges on either side. The other is that it’s so well damped that you struggle to feel anything going under the wheels. You could argue that this is a positive, but against the other two here it just means less fun when the road gets craggy. The Wrangler is a whole load of fun on this terrain and as capable as you’d expect something with distant ties to the original Second World War Willys Jeep to be. It’s a bit of a reverse Tardis – the interior is far smaller than you’d expect, given the sizeable exterior – and that means it can be a bit of a struggle to judge where the corners of the car are. The trio are quite the sight together. It’s a case of the big, the small and the, well, middle. The Jimny is without doubt a firm favourite with passers-by, although the Wrangler isn’t devoid of admiring glances either. The big Rangie isn’t met with the warmest of reactions, but at least the aqua blue of our car is a little softer on the eye than traditionally bigwheeled, blacked-out versions. Powertrain-wise, the Range Rover comes out on top. Its 4.4-litre V8 diesel is silky smooth and burbles away nicely. It also has quite the appetite for fuel – something the Jimny doesn’t share. That said, the Jimny’s 36mpg doesn’t seem all that acceptable for a car of this size, and
‘Does price equate to better off-road capability? Not in the slightest. The little Jimny is the star of the show.' PHOTOGRAPHY: JON REAY
All three test cars proved their worth off road, showing that some four-wheel-drives can really deliver the goods in the rough stuff its pipette-sized fuel tank is quickly drained – although you can get it to near-full for the price of a quarter of the tank in the Rangie. We’d still like a sixth gear – the Jimny is available as a five-speed only – which would help it settle down on the road, but off it, it doesn’t niggle quite as much. The engine still buzzes at high revs, even at moderate speeds though. The 2.2-litre turbo diesel that you get in the Wrangler feels the most agricultural of the three, but it’s smooth and does a good job of
whisking the big Jeep along with little fuss – it’s surprisingly refined on the motorway, in fact. The steering is almost devoid of feel though, and when you’re going at higher speeds it makes piloting it like trying to corner an oil tanker. All three, however, easily proved their worth off road. It goes to show that even though they’re becoming softer and more road-orientated, some of the four-wheel-drives on sale today do what they were originally intended to do. As far as a winner is concerned, it’s a tough
call. The quality of the Range Rover is hard to ignore, as is the ease with which it deals with both big miles and big obstacles. The Jeep, meanwhile, manages a similar trick albeit in a more utilitarian style. But the Jimny is the one that captures the heart and backs it up with plenty of off-roading ability too. It’s the one that people smile and wave at and the one they seem to love most of all. When you add this to its ability to scramble up nearly any gradient or hill, it’s a hard car to beat. [CD] CarDealerMag.co.uk | 53
Focus on. Websites and online retail
Get a great website that will really make you stand out! Three top suppliers explain how they can enhance your online presence while delivering great value and customer service.
T
he automotive retailing landscape is changing at a rapid pace. If you’d read an article like this five or 10 years ago, we might have been saying that a website was crucial to complement your physical forecourt. These days, in many ways, the website is more important! We’ve all read the stats that show customers have more or less made up their minds about the cars they want to buy before they arrive at your dealership – and those figures are undoubtedly true. Your customers these days are always online – and, as such, they are able to search out the automotive deal of their dreams when they’re on the train, relaxing at home or even on the loo! Of course, having experienced and expert staff at your dealership who can help confirm a buyer’s decision and enable them to finalise any deal is still important – but not many potential customers would actually walk through your front doors if they hadn’t been impressed by your online presence beforehand. Over the next few pages, we have information and advice from three great automotive website providers that can all help enhance your online presence and enable you to do more business. With them on board, you can more or less guarantee that successful times lie ahead! First of all, we have a contribution from GForces, which is well aware of the seismic shifts taking place in automotive retail.
Consumer buying habits aren’t changing – they have already changed, the company notes in the article on the opposite page, adding that 72 per cent of consumers are now prepared to buy a vehicle online. What’s more, those buyers are likely to start experimenting with e-commerce within their next two vehicle purchases. Paul Stokes, GForces’ head of online retail, says: ‘The need for a well-designed, optimised website is nothing new, but what a car dealer website now needs to offer is starting to evolve at a rapid pace.’ Next up is Starkwood Media Group, which is celebrating its 20th anniversary this year. It’s an important milestone for the company and represents a lot of expertise and experience in designing, hosting and building fabulous car dealer websites. The firm is marking the occasion by raising its profile and forming several exciting new partnerships that will hugely benefit its hundreds of car dealer customers. Finally, we have Car Dealer 5, which offers great-looking and innovative websites with exceptional value for money a key part of its offer. Explaining all about the company’s speedy build times and excellent levels of customer service, managing director Adrian Pitt tells us: ‘It’s really exciting to get car dealers around the country online with a great website that their customers will love!’
GForces
Starkwood Media Group
Car Dealer 5
Removing all the traditional pain points and barriers from the customer journey.
There’s never been a better time to get on board with this team of web experts.
Low overheads help innovative company deliver incredible value for money.
P55
P58
P60
‘Not many potential customers would walk through your front doors if they hadn’t been impressed by your online presence.’
by DAVE BROWN @CarDealerDave
FEATURED SUPPLIERS
54 | CarDealerMag.co.uk
One stop shop convenience is what buyers are looking for GFORCES
W: gforces.co.uk T: 01622 391 904
C
onsumer buying habits aren’t changing, they’ve already changed. Platforms that offer one-stop-shop convenience will be the next automotive success stories. Seventy-two per cent of consumers are now prepared to buy a vehicle online, and likely to start experimenting with ecommerce within their next two vehicle purchases*. And not only are vehicle owners more likely to buy online, they’re more likely to buy through a dedicated automotive retailer, preferring to communicate with retailers via websites and social media platforms in real time. However, most dealers are not yet equipped to manage omni-channel communications with customers, let alone offer the opportunity to complete a car purchase online. With the Auto-e platform, GForces delivers an end-to-end ecommerce solution, including finance approval, within a dealer’s native web environment. By removing unwanted sales pressure and creating a simple, online, four-step buying
journey, we can remove all the traditional barriers and pain points of the purchase. When combined with other integrations, such as our fully dedicated live chat, we can now provide a buying experience that flexes to each customer’s unique preferences, even one that includes not visiting the dealership if they wish. Not only does this approach put the consumer in control, improving trust and ongoing engagement, it also in turn protects a retailer’s inbuilt profit, as there is usually no negotiation on pricing. The integrated live chat messaging service, powered by Gubagoo, provides instant answers using artificial intelligence or automated holding responses, or can transfer the chat to an adviser, all outside of standard dealership opening hours. Every interaction can be logged and stored with automated follow-ups created at various points in the customer journey. Messages can also be triaged to the right person or department, diaries and call centre lists
populated, with each individual contact point tracked, followed-up and escalated. Powerful data analysis tools also allow retailers to monitor conversion rates and discover the most successful lead generation channels. With NetDirector Auto-e powering a dealer’s website, they’ll be ready for when online vehicle sales becomes mainstream and still have optimised content that encourages engagement offline and in-dealership.
by Paul Stokes – GForces’ head of online retail, pictured
*Google Drive to Decide Gearshift Report, 2018.
CarDealerMag.co.uk | 55
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The dealership of the future.
Alright. It’s a sofa. And sofas have been around a long time. But, couple a sofa with the awesomely powerful NetDirector® Auto-e platform, and you have the dealership of tomorrow. Today. That’s because NetDirector® Auto-e provides dealers with a complete end-to-end ecommerce solution so you can sell vehicles online.
That means your customers can come and buy from the showroom. Or from the comfort of their own homes. Even when just sat on their favourite old sofa. So, now your dealership can be…well, still your dealership, but it’s just expanded… to every sofa in the land. Get in touch to find out more.
www.gforces.co.uk 01622 391 904 CarDealerMag.co.uk | 57
Focus on. Websites and online retail
Celebrating 20 years of experience and expertise STARKWOOD MEDIA GROUP
W: starkwoodmediagroup.com T: 020 3384 0100
T
here is no shortage of up and coming names in the frame when it comes to designing and hosting car dealership websites – and you might be feeling inclined to see what the new kids on the block have to offer. But if you want an industry-leading, superblydesigned website that will attract attention for all the right reasons, surely it must be better to go with an established player known for all-round excellence and value for money? One such company is Starkwood Media Group – and Car Dealer Magazine caught up with managing director Rob Queen who told us what he and the team had been up to so far in 2019. It’s a significant year – the firm is celebrating 20 years of business and is marking the occasion with a new logo, a fresh approach to business and several exciting partnerships that will certainly benefit clients old and new. The company will also be at this year’s CDX, to be held in Farnborough on June 12. Queen told us: ‘We’re not unaware that we face more competition than we did when our company was founded. It’s natural that start-ups should attract attention and now we are working to raise our profile too. We think it’s important for people to know that we’ve been in business for 20 years – that represents a lot of expertise and experience in designing, building and hosting car dealer websites.’ Queen is a Fellow of the Institute of the Motor Industry while CEO Ian Piper is a Member – and the pair’s association with the respected organisation demonstrates that the people at the top of Starkwood have been in the automotive world for many years and have reached a certain status. So a long and successful history is one thing – but what about the future? Well, it’s all looking very exciting. More designers are being recruited and Starkwood’s sales team has increased from two to six people, really beefing up the level of support for both new and existing customers. Another interesting development is that Starkwood has partnered with Autosales Systems Limited, a specialist DMS provider that can help dealers keep on the right side of HMRC now the
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‘We’re always working with our partners to develop products, ideas and concepts.’ Rob Queen new ‘Making Tax Digital’ rules have come in. The provision has been introduced after feedback from dealer customers. ‘It’s a fantastic DMS that is hugely price-driven,’ said Queen. ‘And there’s no double loading – it links directly to our website. We took the view that our USP is website design, hence the decision to form a relationship with another company rather than build a DMS ourselves, which would be a massive undertaking.’ Turning to Starkwood’s all-important website offering, he said: ‘We have two products – one is a custom product where dealers pick a predefined layout; the other is a bespoke layout where we start with a blank sheet of paper and work with the client to deliver exactly what they want. ‘Lots of phone calls will take place to discuss the layout, the colour, the look, the branding and the style. ‘We won’t rest until the customer is 100 per cent satisfied.’ Another interesting part of the Starkwood offering is Autohub – a clever and innovative stock management portal which is used to aggregate dealers’ stock and send it to one of the UK’s best-known classified websites. This is an invaluable service
for smaller dealers in particular, who would not be able to access such a site without Starkwood’s involvement. In fact, a whole range of partnerships with companies such as iVendi, Evolution Funding, Codeweavers, Facebook and others can really benefit dealers and such relationships are being formed and developed all the time. ‘It’s all about being able to add value to car dealers,’ emphasised Queen. ‘We’re always working with our partners to develop products, ideas and concepts that will help our dealers. ‘You’ll see on our website that we offer live chat, social products and innovative vehicle imagery products – whatever a dealer wants on his site, we will do our best to deliver it.’ With his years of experience in the automotive industry, the last 10 of which have been spent at Starkwood, Queen is well aware that the landscape is changing all the time. Asked for an example, he said: ‘A few years ago, dealers’ main focus was SEO. These days, that has been superseded by social. Again, dealers used to focus heavily on finance, now they’re far more concerned with DMS.’ One thing you can be sure of, whatever the future holds, with Starkwood by your side you’ll be in safe hands. Here’s to the next 20 years!
CarDealerMag.co.uk | 59
Focus on. Websites and online retail
Great websites your customers (and your wallet) will love CAR DEALER 5
E: sales@cardealer5.co.uk T: 01902 203333
K
eeping overheads to a minimum is key when times are tough. And one of the ways you could save money is by looking at your online operation. Trouble is, would reducing expenditure in this all-important area lead to a less impressive website for you and a less enjoyable experience for your customers? Not if you switch to Car Dealer 5! Car Dealer 5 builds websites that look great, are functionally advanced and, most importantly, offer great value for money. We caught up with Managing Director Adrian Pitt recently and he explained what his company can offer dealers – a flexible and cost-effective approach to automotive website design with fast build times and excellent service. As we mentioned in Car Dealer a couple of months ago, Car Dealer 5’s dealers know they’re getting an automotive digital solution that fits their needs exactly, at a very wallet-friendly cost. And word seems to be getting out about that all-important USP – Car Dealer 5’s exceptional value for money. Dealers choose from three packages – a Responsive site is £450 a year, Super is £650 a year and Elite is just £1,050 a year if that fee is paid upfront. Emphasising the low costs of Car Dealer 5, Adrian told us: ‘Our Elite package offers great value and the cost can be spread over the year for only £100+VAT each month. That makes an Elite website perfect for a new dealer who can’t commit to the cost upfront, but doesn’t want to compromise on the quality of their site. He added: ‘Once a dealer has chosen their package, they pick a website theme. We’ve got over 25 to choose from and they can mix and match as well – creating their own bespoke site. Our dealers are impressed with how quickly they get a modern, functional website their customers will love – and for a fraction of the cost. ‘If you compare that to any of our competitors, it’s just unbeatable. Our overheads are low – there’s three of us here in the office, helping dealers get the website they need, we’re not out
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on the road. That’s how we offer our unbeatable service and technical support. ‘And we have no intention of putting our prices up. I think the industry generally is overpriced. We show that it doesn’t have to cost the earth to have a website that really works for each of our dealers, and their customers.’ Want to get stock advertised on Facebook Marketplace? Car Dealer 5 can sort that, too. For just £25+VAT per month, you can advertise as many cars as you want on the platform, easily. There’s full integration with all the big players such as Auto Trader, Motors, eBay, CarGurus and more, too. You can apply frame templates to individual cars featuring the logos of F&I partners such as First Response, Santander and MotoNovo – and image editing is another great feature going live to the Elite platform any time now. As Adrian says: ‘Development work is continuing non-stop!’ Another recent development Car Dealer 5 is proud to announce is the addition of commercials to its sites. One CD5 dealer was prepared to move to a competitor that offered this, but CD5 developed their technology and made it work for him. Adrian said: ‘Customers can now shop for commercials by category just as they can with cars
– so we have panel vans, long-wheelbase vehicles, chassis cabs, drop-sides and tippers. We’re always responding to dealer and customer demand and are looking for ways to improve and upgrade our technology and the services we offer. And when you decide to make the switch to Car Dealer 5, you can bet that things will go smoothly. ‘Ninety dealers have switched their website provider to CD5 this year already,’ Adrian told us. ‘Transferring from any other provider is a very quick and painless process.’ As was the case when we chatted to Adrian a couple of months ago, he was keen to point out that the CD5 team are second to none – ‘We’re always around to answer questions and to fix any issues that arise.’ Dealers raise support tickets if there is something they want changed or fixed on their website. Adrian told us: ‘The support tickets we get and the tech we use means any of the team can action the request on the fly, straight away. We’re all notified of support tickets and most dealer requests can be completed in just a few minutes.’ To sum up, he told us: ‘It’s really exciting to get car dealers around the country online with a great website that their customers will love!’ [CD]
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Data file.
Thestatistics
SMMT sales data
| SMMT SALES DATA | TAKING STOCK |
Mar/year to date
MARCH FIGURES
Plate-change month hit by political uncertainty as registrations decline
U
K new car registrations fell by 3.4 per cent in March, as political and economic uncertainty plus continuing confusion over diesel affected demand, according to figures released by the Society of Motor Manufacturers and Traders. March is a crucial month for the new car market, as the plate change drives buyers into showrooms, with new car demand often seen as a bellwether for consumer confidence and the health of the wider economy. Demand fell in both the private and business sectors, with registrations down 2.8 per cent and 44.8 per cent respectively, while fleet demand was stable, up 0.3 per cent. Declines were seen across almost every vehicle segment, including popular dual purpose (-1.8 per cent ) and small family cars (-4.0 per cent). However, superminis – Britain’s favourite vehicle type – saw a 4.3 per cent increase in demand, taking a third (33.7 per cent) of all registrations. Following the trend of recent months, diesel registrations fell 21.4 per cent while petrol demand grew by 5.1 per cent. Meanwhile, demand for alternatively fuelled vehicles (AFVs)
increased by 7.6 per cent with 25,302 registered – the biggest March volume on record. With almost 40 plug-in models on the market in the UK and more than 20 more expected to arrive in 2019, demand for these new technologies is expected to continue to grow. Mike Hawes, SMMT chief executive, said: ‘March is a key barometer for the new car market, so this fall is of clear concern. While manufacturers continue to invest in exciting models and cutting-edge tech, for the UK to reap the full benefits of these advances we need a strong market that encourages the adoption of new technology. That means supportive policies, not least on vehicle taxation and incentives, to give buyers the confidence to invest in the new car that best meets their driving needs. ‘Above all, we urgently need an end to the political and economic uncertainty by removing permanently the threat of a ‘‘no-deal’’ Brexit and agreeing a future relationship that avoids any additional friction that would increase costs and hence prices.’
Sue Robinson, director of the National Franchised Dealers’ Association. said: ‘Despite the challenges affecting new car sales, retailers are demonstrating their resilience by capitalising on the opportunities provided by other business areas including used cars, aftersales and alternative-fuel vehicles. ‘Positively, as appetite for alternative fuel vehicles keeps increasing alongside the availability of more models, this segment of the market will continue to perform well. ‘Whilst there is demand for new cars, consumer decisions are being delayed due to Brexit. We call on the government to produce a deal with the EU that protects motor retailing, a crucial industry for the UK economy.’ James Fairclough, chief executive of AA Cars, said: ‘The stark truth is that the uncertainty in Westminster continues to set the tone for consumer confidence across the country – and with little clarity on what’s happening over the next couple of weeks, buyers are being decidedly cautious in paying for big-ticket items.’
5
Top
Most-improved manufacturers in March
Dacia +85% MG +62% Volvo +26% Citroen +21% Jaguar +20%
5
Bottom
Worst-performing manufacturers in March
Chevrolet -93% Infiniti -71% DS -53% McLaren -50% Maserati -43%
MG strengthens position as fastest growing manufacturer MG is celebrating a record-breaking start to the year, achieving its best-ever sales figures for the month of March with 1,814 new registrations. The records continued to tumble as the bumper sales in March contributed to an unprecedented quarter of sales with MG Motor UK reaching 3,016 new registrations over the first three months 62 | CarDealerMag.co.uk
of 2019, up by 70 per cent versus the same period in 2018. Together, these outstanding results reinforce MG’s position as the fastest-growing car manufacturer in the UK. Bolstered by the popularity of the MG3 and MG ZS, the impressive new results reflect the continuous investment and strong growth in the
MG brand, its product portfolio and extensive dealership network. Daniel Gregorious, head of sales and marketing at MG Motor UK, said: ‘This continued rise in the popularity of MG cars among the car-buying public is vital, as we further strengthen our position as the fastest-growing car manufacturer in the UK.’
Bentley
Ford
+10% March 2019 Marque
2019
-18%
March 2018
% market share
2018
Year-to-date (YTD)
% market share
% change
2019
% market share
2018
% market share
% change
Abarth
867
0.19
1,107
0.23
-21.68
1,232
0.18
1,527
0.21
-19.32
Alfa Romeo
615
0.13
1,004
0.21
-38.75
1,023
0.15
1,458
0.20
-29.84
Alpine Audi Bentley BMW Chevrolet
22
0.00
0
0.00
0.00
43
0.01
0
0.00
0.00
28,132
6.14
29,968
6.32
-6.13
41,876
5.97
47,915
6.67
-12.60
254
0.06
229
0.05
10.92
429
0.06
410
0.06
4.63
30,330
6.62
31,649
6.68
-4.17
46,753
6.67
47,393
6.60
-1.35
1
0.00
15
0.00
-93.33
3
0.00
17
0.00
-82.35 16.80
Citroen
11,023
2.41
9,050
1.91
21.80
17,136
2.44
14,671
2.04
Dacia
7,443
1.62
4,013
0.85
85.47
10,926
1.56
7,182
1.00
52.13
763
0.17
1,656
0.35
-53.93
1,074
0.15
2,108
0.29
-49.05
DS Fiat
8,325
1.82
8,524
1.80
-2.33
10,956
1.56
11,544
1.61
-5.09
Ford
40,755
8.90
50,257
10.60
-18.91
67,774
9.67
81,957
11.41
-17.31
Honda
10,043
2.19
11,896
2.51
-15.58
15,485
2.21
18,137
2.52
-14.62
16,317
3.56
18,526
3.91
-11.92
24,777
3.53
28,004
3.90
-11.52
Infiniti
45
0.01
160
0.03
-71.88
93
0.01
313
0.04
-70.29
Jaguar
8,182
1.79
6,797
1.43
20.38
11,294
1.61
9,709
1.35
16.33
986
0.22
1,322
0.28
-25.42
1,547
0.22
1,728
0.24
-10.47
Kia
18,345
4.00
18,094
3.82
1.39
29,954
4.27
28,751
4.00
4.18
Land Rover
16,680
3.64
16,655
3.51
0.15
23,840
3.40
23,815
3.31
0.10
Lexus
3,137
0.68
3,006
0.63
4.36
4,406
0.63
4,073
0.57
8.18
Lotus
26
0.01
36
0.01
-27.78
33
0.00
60
0.01
-45.00
Maserati
155
0.03
276
0.06
-43.84
276
0.04
436
0.06
-36.70
8,791
1.92
10,085
2.13
-12.83
13,058
1.86
14,172
1.97
-7.86
65
0.01
132
0.03
-50.76
141
0.02
213
0.03
-33.80
Hyundai
Jeep
Mazda McLaren
33,536
7.32
33,194
7.00
1.03
51,873
7.40
51,173
7.12
1.37
MG
1,814
0.40
1,114
0.23
62.84
3,016
0.43
1,775
0.25
69.92
Mini
12,992
2.84
12,352
2.61
5.18
18,134
2.59
17,009
2.37
6.61
3,612
0.79
3,929
0.83
-8.07
5,516
0.79
5,997
0.83
-8.02
Nissan
19,962
4.36
24,561
5.18
-18.72
29,402
4.19
34,794
4.84
-15.50
Peugeot
16,318
3.56
16,301
3.44
0.10
25,242
3.60
24,643
3.43
2.43
Porsche
1,630
0.36
2,659
0.56
-38.70
2,415
0.34
4,074
0.57
-40.72
Renault
13,723
3.00
14,531
3.07
-5.56
19,030
2.71
19,604
2.73
-2.93
Seat
12,682
2.77
11,829
2.50
7.21
20,635
2.94
18,390
2.56
12.21
Skoda
13,637
2.98
13,300
2.81
2.53
21,992
3.14
21,611
3.01
1.76
Smart
1,015
0.22
1,201
0.25
-15.49
1,706
0.24
2,067
0.29
-17.46
SsangYong
438
0.10
613
0.13
-28.55
712
0.10
865
0.12
-17.69
Subaru
632
0.14
761
0.16
-16.95
880
0.13
978
0.14
-10.02
Suzuki
6,224
1.36
6,466
1.36
-3.74
11,980
1.71
11,323
1.58
5.80
Toyota
20,874
4.56
22,537
4.75
-7.38
31,981
4.56
33,215
4.62
-3.72
Vauxhall
37,769
8.25
37,023
7.81
2.01
54,924
7.83
54,535
7.59
0.71
Volkswagen
38,335
8.37
37,843
7.98
1.30
59,519
8.49
57,458
8.00
3.59
Volvo
10,420
2.27
8,237
1.74
26.50
16,204
2.31
11,657
1.62
39.01
428
0.09
335
0.07
27.76
689
0.10
509
0.07
35.36
Mercedes-Benz
Mitsubishi
Other British Other imports Total
711
0.16
826
0.17
-13.92
1,057
0.15
1,219
0.17
-13.29
458,054
100
474,069
100
-3.38
701,036
100
718,489
100
-2.43
Figures supplied by SMMT
CarDealerMag.co.uk | 63
LCV news.
Fullyloaded
| LIGHT COMMERCIAL VEHICLES | FLEET | REVIEWS |
FORD
NISSAN
Clever tech will help drivers save on fuel
Lookers offering great new staycation option by JOHN BOWMAN john@blackballmedia.co.uk
MANY drivers know that they can save on fuel by laying off the accelerator pedal. Now, Ford is introducing commercial vehiclefirst technology that helps drivers economise further by letting them know when to slow down in good time to avoid hard braking, based on what lies ahead, and even out of sight. Ford’s EcoGuide technology uses the vehicle sat-nav to anticipate future driving situations that help inform the most fuel-efficient way to drive. It analyses driving behaviour and offers feedback via the instrument cluster to help achieve the optimum efficiency for the road conditions ahead. Michael McDonagh, Transit global chief programme engineer, Ford of Europe, said: ‘Everyone has experienced occasions when we have to brake suddenly if a bend is tighter than expected, only to speed up again afterwards. EcoGuide will help avoid this, saving drivers fuel, time and stress.’ Ford will first introduce EcoGuide to new Transit, Transit Custom van and Tourneo Custom people mover models soon. Driving smoothly and assessing the road ahead as much as possible to avoid unnecessary braking and acceleration can improve your fuel consumption by as much as 12 per cent, according to figures from IAM RoadSmart. 64 | CarDealerMag.co.uk
A
Yorkshire Nissan dealership is helping holidaymakers get the most out of the British spring and summer with the introduction of a new service that transforms one of its key van models into a motor home. Lookers Nissan on Kirkstall Road, Leeds, is offering the service to customers who purchase the NV300, which they will convert to a fourberth camper van. It’s the first Lookers Nissan dealership to offer the service directly and will allow customers to seamlessly purchase the campervan of their dreams thanks to a wealth of options and spec. Among the many options available are appliances such as an oven, compressor fridge, microwave and a foldaway dining table. Sleeping quarters are made up of beds for two passengers in the main van and two more in the pop-out roof. The Leeds dealership hopes to tap into the increased number of people spending their holidays at home here in the UK, as well as those looking for an affordable way to own a campervan.
Figures from the latest Travelodge holiday report show that over half of Britons (57 per cent) took their summer holiday in the UK last year, while the amount spent per break was £823, up from £599 in 2017. With last year’s heatwave still fresh in the minds of holiday makers, Josh Tyerman, local business development manager, fleet, believes that a modified NV300 could be the perfect way to experience everything that the British Isles have to offer. Tyerman said: ‘We’re very excited to be offering this bespoke service that allows our customers to transform the Nissan NV300 into
their dream campervan. It’s a brandnew service for Lookers Nissan and we hope that, with the recent warm weather getting everyone talking about the upcoming spring and summer, that our customers will be looking to make their stay in the UK this year that extra bit special. ‘Also, compared to other highspec campervans on the market, a converted NV300 is very costeffective. Whether you’re thinking about going to a festival this summer or just enjoying the Great British countryside, we think we’ve found the ultimate solution. ‘We can’t wait for people to come and see it for themselves.’
Top-selling LCVs in March Ford Transit Custom Ford Transit Volkswagen Transporter Mercedes-Benz Sprinter Ford Ranger
Source: SMMT
11,573 4,635 3,424 3,228 3,184
Peugeot Partner Vauxhall Vivaro Citroen Berlingo Ford Transit Connect Renault Trafic
2,977 2,694 2,572 2,562 2,404
LCV registrations, p66
‘Interior quality is impressive, with a number of smart details carried over from VW’s car range.’ Volkswagen Crafter on test, p67
Sliding doors WITH CRAIG CHEETHAM
A look at the world of buying and selling vans and pick-ups
ULEZ will cost CV operators much more than the charges alone
O
n April 8, the Ultra-Low Emission Zone (ULEZ) came into force in London to replace the T-Charge – the first zone of its type in the UK. It initially covers the same area within central London as the congestion charge but by 2021 will extend to within the boundaries of the North and South Circular Roads (A406 and A205). The ULEZ charges are on top of the congestion charge and will be levied on vehicles that fail to reach certain environmental criteria, namely Euro 4 emissions limits for petrol engines or Euro 6 for diesels. The ramifications for CV operators are massive, as the ULEZ is targeted at firms that deliver to and from the zone or operate within it. Entering the zone in a commercial vehicle that fails to meet the emissions criteria will leave them liable to a charge of £100 per day for vans and trucks over 3.5 tonnes, or buses and coaches over five tonnes. Vans and pick-ups below 3.5 tonnes will face the same £12.50 levy as non-compliant cars, and estimates suggest that currently 51 per cent of vans operating in London don’t meet the criteria. The charges operate for 24 hours a day, too – including Sundays and bank holidays. Transport for London (TfL) reckons the ULEZ will significantly reduce the amount of polluting vehicles driving within central London and will reduce NOx emissions there by 45 per cent, but that’s only part of the story. What TfL singularly fails to recognise is that the blanket implementation is just bringing forward the fleet replacement cycle at huge cost to many small businesses and operators of specialist vehicles, because when businesses buy new vehicles, it’s not the purchase price they need to consider but how long they plan to run them for and what they will sell them for when they are finished. Fear not, though, says TfL, because we have an ace up our sleeve –
that ace being a van scrappage scheme, through which the Mayor of London, Sadiq Khan, is prepared to invest £23 million. That’s fine for the Addison Lees and DPDs of this world, but what about Fred the butcher, or the very nice chap who runs the 24-hour convenience store up the road and is frequently seen unloading his 20-year-old Transit at 3am to get around Red Route parking restrictions? These are what Khan refers to as ‘microbusinesses’ – which personally I’d see as a bit of an insult after years of hard graft, only to find out that I’m then forced to fork out for a new van when the battered old one that I have is perfectly okay for the two trips a week it has to do to the cash-and-carry. We’re not talking cheap vans either, as Euro 6 and electric vans are far from low-priced. Yet again then, we have a strategy that’s been thought out by those who’ve never done a day’s work out of the business end of a van and have no idea who they are talking to. But it’s one the leasing firms are all clambering over, because they know full well that the local shopkeeper is too busy trying to keep his business afloat in challenging economic times to go van shopping, and probably doesn’t have the requisite £25k+ lying around to buy a new one anyway. At least if he can lease one for a few hundred quid a month it can be budgeted for and used as a tax offset, even if his net position as a hardgrafting British taxpayer is yet again kicked squarely in the nuts. Meanwhile, van dealers are bound to see a spike in activity around the introduction of the ULEZ, but this may only be a flurry – after all, chances are that ‘microbusinesses’ will only invest in a new van once the goalposts are moved again. It’s definitely one to watch, though, with – as I said earlier – the London ULEZ set to expand as far as the North and South Circular Roads, while other large towns and cities take a keen interest in it as well. A cynic might suggest that air quality measures are suddenly a licence to print money. It can’t be so, surely?
‘A cynic might suggest that air quality measures are suddenly a licence to print money.’
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 | 65
LCV news. LATEST STATISTICS
Best month for van market as 19-plate offers drive demand THE UK new light commercial vehicle market saw year-on-year demand increase by 10.6 per cent in March, marking the sector’s best ever monthly performance, according to figures from the Society of Motor Manufacturers and Traders. March’s registrations accounted for almost twothirds of the first quarter’s volumes, as business buyers took advantage of new models and strong
market incentives. More than 66,000 new vans and pick-ups hit British roads compared with the same month in 2018 – an uplift of 6,359 units. Both medium vans weighing 2.0-2.5 tonnes and large vans weighing 2.5-3.5 tonnes saw doubledigit growth, with demand rising by 17.9 per cent and 13.0 per cent respectively. Registrations of pick-ups also rose, by 6.7 per cent, to more than
11,000. Meanwhile, small vans weighing under two tonnes fell by 10.6 per cent. Mike Hawes, SMMT chief executive, said: ‘It’s great to see large demand for the new 19 plate. For such exceptional demand to continue longterm, however, we need business confidence to improve and that means an end to the political and economic instability besetting the UK.’
Registrations of new commercial vehicles less than 3.5 tonnes March 2019 Marque
2019
March 2018
% market share
2018
Figures supplied by SMMT
Year-to-date (YTD)
% market share
% change
2019
% market share
2018
% market share
% change
23,077
34.90
20,976
35.10
10.02
34,951
34.02
33,532
35.53
4.23
Volkswagen
6,977
10.55
7,555
12.64
-7.65
11,154
10.86
11,617
12.31
-3.99
Peugeot
6,220
9.41
5,452
9.12
14.09
9,788
9.53
8,829
9.36
10.86
Mercedes
5,534
8.37
3,780
6.32
46.40
8,816
8.58
6,409
6.79
37.56
Vauxhall
5,301
8.02
4,175
6.99
26.97
8,373
8.15
6,526
6.92
28.30
Citroen
4,722
7.14
4,579
7.66
3.12
7,828
7.62
7,282
7.72
7.50
Renault
4,012
6.07
2,701
4.52
48.54
5,654
5.50
4,640
4.92
21.85
Mitsubishi
2,398
3.63
2,047
3.43
17.15
3,940
3.83
3,035
3.22
29.82
Nissan
2,619
3.96
3,204
5.36
-18.26
3,734
3.63
4,312
4.57
-13.40
Fiat
1,684
2.55
1,601
2.68
5.18
2,575
2.51
2,327
2.47
10.66
Toyota
1,473
2.23
1,655
2.77
-11.00
2,410
2.35
2,446
2.59
-1.47
Isuzu
910
1.38
989
1.65
-7.99
1,253
1.22
1,426
1.51
-12.13
Iveco
334
0.51
458
0.77
-27.07
793
0.77
985
1.04
-19.49
Renault Trucks
176
0.27
250
0.42
-29.60
334
0.33
442
0.47
-24.43
Land Rover
180
0.27
121
0.20
48.76
313
0.30
121
0.13
158.68
MAN
170
0.26
20
0.03
750.00
272
0.26
35
0.04
677.14
Isuzu Trucks
114
0.17
80
0.13
42.50
197
0.19
140
0.15
40.71
SsangYong
130
0.20
57
0.10
128.07
177
0.17
88
0.09
101.14
LDV
30
0.05
33
0.06
-9.09
88
0.09
84
0.09
4.76
Fuso
35
0.05
19
0.03
84.21
55
0.05
42
0.04
30.95
Hyundai
27
0.04
11
0.02
145.45
38
0.04
17
0.02
123.53
Dacia
0
0.00
0
0.00
0.00
0
0.00
37
0.04
0.00
Great Wall
0
0.00
1
0.00
0.00
0
0.00
2
0.00
0.00
66,123
100.00
59,764
100.00
10.64
102,743
100.00
94,374
100.00
8.87
Ford
Total light CV
Registrations of new commercial vehicles 3.5 tonnes to 6.0 tonnes March 2019 Marque
2019
March 2018
% market share
2018
Figures supplied by SMMT
Year-to-date (YTD)
% market share
% change
2019
% market share
2018
% market share
% change
Peugeot
398
35.07
353
26.30
12.75
529
28.73
520
23.48
1.73
Fiat
326
28.72
280
20.86
16.43
511
27.76
451
20.36
13.30
Mercedes
260
22.91
276
20.57
-5.80
453
24.61
438
19.77
3.42
Iveco
63
5.55
41
3.06
53.66
159
8.64
102
4.60
55.88
Ford
25
2.20
339
25.26
-92.63
69
3.75
607
27.40
-88.63
Vauxhall
24
2.11
17
1.27
41.18
43
2.34
25
1.13
72.00
Citroen
14
1.23
14
1.04
0.00
27
1.47
29
1.31
-6.90
Renault
8
0.70
11
0.82
-27.27
17
0.92
19
0.86
-10.53
Volkswagen
7
0.62
9
0.67
-22.22
14
0.76
21
0.95
-33.33
MAN
6
0.53
1
0.07
500.00
12
0.65
1
0.05
1,100.00
Isuzu Trucks
3
0.26
1
0.07
200.00
4
0.22
2
0.09
100.00
Renault Trucks
1
0.09
0
0.00
0.00
3
0.16
0
0.00
0.00
Total heavy CV
1,135
100.00
1,342
100.00
-15.42
1,841
100.00
2,215
100.00
-16.88
66 | CarDealerMag.co.uk
FIRST DRIVE
Volkswagen Crafter
THE KNOWLEDGE
Craig Cheetham is impressed by a vehicle that he classes as one of the best vans on the market – and enjoys driving partly because it’s so comfortable. What is it? Volkswagen’s Crafter is one of the most versatile big vans on the market, as well as being the basis for many of the manufacturer’s approved conversions. This is the rear-wheel-drive model designed for heavy-duty light haulage, with twin rear wheels and a leaf-sprung rear end, along with a tachograph and speed limiter. What’s new? Our test vehicle is the rear-wheeldrive medium-wheelbase model with a 5.0t Gross Vehicle Weight, one of the most recent additions to the range. The Trendline spec is quite upmarket for a big van, while it also features a host of Driver Assistance Systems including Autonomous Emergency Braking, Lane Departure Warning, Hill Start Assist and ParkPilot. What’s under the bonnet? Power comes from VW Group’s 2.0-litre TDI common-rail diesel, in this derivative developing 175bhp. The unit has an impressive 410Nm of torque peaking at 1,500-2,000rpm, mated to a six-speed manual transmission. It feels plenty powerful enough even when laden. What’s it like to drive? It may not be the long wheelbase
variant, but the Crafter feels big – compared to the largest version of the Ford Transit, it has similar dimensions, but the Crafter somehow feels larger. This is perhaps down to the driving position. Our test van had VW’s ErgoComfort driver’s seat, which is both air-sprung and multiadjustable, and does exactly what it says on the tin – there are few vans of this size that are as comfortable. The Crafter is a very pleasant vehicle to drive for something so big, with a light and precise gearshift, decent refinement and good all-round visibility, even with a fixed steel bulkhead.
What’s it like inside? Interior quality is impressive, with a number of smart details carried over from VW’s car range, along with chunky controls that wouldn’t look out of place in one of the brand’s more upmarket saloons. The linear design of the dash, eight-inch infotainment screen and rotary dials for the air con and heater controls are also very similar to those used in VW’s car line-up, giving the Crafter a premium air. The load bay is superb – plenty of lashing points, rear barn-style doors with restricted opening on the road side, and a large sliding door that gives plenty of access.
How does it look? Volkswagen has managed to incorporate a number of design features from its passenger car range into the design of the Crafter, so the front end, in particular, looks like that of the VW Passat. It’s a handsome-looking van. With the twin rear wheels and rear-wheel-drive layout, it sits higher at the back and is less harmonious in styling terms, but there are very few vans in this category that are plated to a GVW of five-tonnes, and looks aren’t especially important for that market. Nevertheless, the Crafter’s smart appearance overall can’t be a bad thing for business.
What’s the spec like? The Trendline is really well-equipped – the multimedia screen, three seats, cruise control and multi-function trip computer are all standard, as is an advanced security system that also includes tow-away protection. Safety is the big story here, though. VW is a leader in driverassistance tech on its vans, and the Crafter gets autonomous city braking, lane departure warning, ESC, hill start assist and crosswind assist all as standard kit. What do the press think? Parkers said: ‘The Crafter is exceptionally easy to drive and
Model: VW Crafter CR50 Trendline MWB 2.0 TDI 177PS RWD Price (as tested): £ 51,382 inc VAT Engine: 2.0 TDI four-cylinder Power (bhp): 175 Torque (Nm): 410 Max speed (mph): 56 (limited) 0-60mph: n/a MPG: 32.5 Emissions: 228 (g/km) TARGET BUYERS: Home delivery fleets, light haulage operators. THE RIVALS: Mercedes Sprinter, Ford Transit RWD, MAN TGE KEY SELLING POINTS: 1. Quality build. 2. Strong brand. 3. Large loadspace. DEAL CLINCHER: VW’s ‘Working With You’ promise is one of the best aftersales deals around. comfortable, with arguably the best cab environment of any van on sale.’ Commercial Fleet added: ‘There is no doubt the Crafter is among the best in its segment.’ What do we think? The Crafter is one of the very best in the market, and certainly the most comfortable variant to drive. Our test van, though, had a list price (with extras) of over £50k. Even with strong RVs, that’s a pretty substantial investment. CarDealerMag.co.uk | 67
Workshop.
Aftermarket
SERVICING & REPAIRS | PRODUCT NEWS | PEOPLE & PLACES
NATIONWIDE
Team spirit at 25th Rapid Repair Centre
PENALTY
Halfords must pay out over poor car service H
NATIONWIDE Accident Repair Services has further expanded its successful Rapid Repair model with a new centre in the West Midlands that was up and running in just five weeks. The building in Dudley boasts a spacious and welcoming reception area staffed by the customer service team. It then opens up into a busy workshop that has six multiskilled technicians who are committed to delivering the high-quality repairs expected. Martin Isaac, divisional director, said: ‘The idea behind the Rapid Repair model is to improve the service we provide to our customers, which is why we have a key-to-key target of five days. ‘It was important to open a Rapid Repair Centre in Dudley because we have a number of sites in this area and this will help us improve our speed of repair.’ The centre – which takes the total number of Rapid Repair sites to 25, after the model was started in 2014 – is managed by Lee Birch, and the team was selected to ensure it has the right skills to deliver excellent service to Nationwide customers. Our picture shows divisional director Martin Isaac, left, with Dudley general manager Lee Birch. 68 | CarDealerMag.co.uk
alfords has been told to pay nearly £40,000 after an Autocentre failed to rectify or report 11 faults on a Volkswagen Passat – with the company admitting that its technicians sometimes ‘cut corners’. Warwickshire County Council’s trading standards department launched a successful prosecution after an undercover test purchase and investigation into the workshop in Birmingham Road, Stratfordupon-Avon. The service cost £210, but garage staff failed to rectify or report 11 separate faults on the Passat, similar to the one pictured, including leaking front shock absorbers, a split drive shaft gaiter, an insecure battery and excessive play on the anti-roll bar. Staff also failed to notice a split wiper blade, didn’t top up the brake fluid level from the minimum or increase the spare tyre pressure to the recommended level. The vehicle was supposed to have been taken for a test drive as well. However, the mileage indicator showed that it hadn’t been
by JOHN BOWMAN john@blackballmedia.co.uk
driven anywhere. The service was signed off by a quality controller, despite some faults not being noticed and others that had been spotted by the technician not being notified to the customer or rectified. Halfords Autocentres Ltd was fined £28,000 at Birmingham Magistrates’ Court and ordered to pay costs of £11,700.97 plus a victim surcharge of £170 – making a total of £39,870.97 – on March 15, after the Stratford-upon-Avon branch pleaded guilty on January 14 to one offence of unfair trading. In court, barrister William Hibbert, appearing for Halfords, said its Autocentres serviced 22,000 cars a month nationally and relied upon its technicians, and that sometimes
they ‘cut corners’. He said the company accepted that it could have done better and its systems failed, but in mitigation maintained that Halfords had co-operated with the investigation and took its legal responsibilities very seriously. After the case, county councillor Andy Crump, portfolio holder for community safety, said: ‘We rely on garages to carry out services correctly so that we can have confidence that our vehicles are properly maintained and consequently safe to drive. ‘I’m delighted that Warwickshire trading standards is carrying out this important work.’ The department regularly carries out undercover car servicing enforcement exercises. An expert vehicle examiner places faults on cars before they’re submitted for services at garages across the county. Afterwards, the expert then examines the vehicles to see if the garages have carried out the services properly.
Platinum International: Joining IAAF was a must! BATTERY and lubricants specialist Platinum International has enrolled as a member of the Independent Automotive Aftermarket Federation – the latest in a series of aftermarket names to join its ranks. Established in 2002 and originally known as UK Batteries, Platinum International has grown to become the UK’s largest independent battery and lubricants
distributor, which it attributes to its focused strategy of expansion within the independent aftermarket. It employs more than 200 staff and has its headquarters in Manchester, with nine strategically placed Platinum Customer Support Centres as well. Company spokesman Stuart Dale said: ‘With the IAAF being “the voice of the aftermarket”, joining was a must.’
JARDINE
Bronze award from recognition scheme
JARDINE Motors Group has been recognised with a bronze award from the Armed Forces Covenant Employer Recognition Scheme. The award recognises the work that Jardine has been doing in taking on employees leaving the armed forces, offering them the opportunity to retrain and apply their skills within the company’s network of car dealerships. The Armed Forces Covenant is a commitment from employers to support those who have served their country and offer them opportunities once they leave the services. Jardine’s dealerships have benefited particularly from the arrival of experienced technicians. A lot of ex-service people have easily transferable skills, such as strong leadership qualities and great communication abilities. Jardine HR director Clare Martin said: ‘It’s an honour to be part of the Armed Forces Covenant and to support those who have served their country. ‘The skills learnt and developed in the armed forces transfer well into the automotive industry, with ex-service people recently joining our aftersales teams at JLR and Audi. ‘To receive the bronze award is a really good feeling and it highlights our commitment to the cause. We will continue to offer opportunities to armed forces personnel.’
Vehicle owners are advised to make themselves familiar with the level of cover provided by any warranty
THE MOTOR OMBUDSMAN
Survey reveals level of warranty confusion A
YouGov poll of 1,293 car owners commissioned by automotive dispute resolution provider The Motor Ombudsman revealed that just over half (53 per cent) of respondents were aware that they could extend their new car warranty when it came to an end. Less than a third (32 per cent) were aware, too, that they could buy a policy from a third-party provider to cover their vehicle for another set period beyond that supplied by the carmaker. The research also showed that male drivers and those aged 35 years and over were the most likely to know that an agreement can be prolonged via the manufacturer of their car, or that a new policy can
by DAVE BROWN @CarDealerDave
be taken out using an independent warranty administrator. Encouragingly, of those who were aware that a warranty could be extended via a manufacturer or third party, nearly eight in 10 (79 per cent) said they were mindful of the fact that an extended warranty agreement could be made void if they didn’t keep to the terms and conditions of the policy. Participants aged between 25 and 44 and people living in Scotland were the most familiar with that risk of a warranty being invalidated. Bill Fennell, chief ombudsman and managing director of The Motor
Ombudsman, said: ‘A warranty policy must be read carefully and in its entirety by vehicle owners to ensure that they are clear as to the level of cover being provided, as well as any exclusions. ‘There remains an element of misunderstanding among consumers as to the availability of extended warranties, their purpose, and the protection they provide. ‘We have recently introduced a page on our website dedicated to some of the most frequently asked questions on warranties. ‘These complement the bite-sized articles on our Knowledge Base and the comprehensive library of online case studies. We will be looking to expand these resources, as they have proved very popular.’
Parts Alliance trade show is hailed as a great success THE Parts Alliance has successfully hosted its first major trade show of 2019. More than 500 customers attended the event, held at the Centenary Pavilion in Leeds United’s Elland Road stadium, taking the opportunity to discuss the latest products, technology, market developments and profit opportunities with more than 50 of the trading group’s key supplier partners. David Gilfeather, the owner of DG Autos in Rodley,
Leeds, said: ‘We thought we should come for a wander around and see because we’ve never had the chance to get to anything like this before. It’s really great to see so much here and was well worth us coming.’ Branches of BBC Superfactors, BMS Superfactors, GSF Car Parts, SAS Autoparts and Waterloo Motor Trade all invited customers who took the opportunity to not only do business but also listen to interviews with special guests. CarDealerMag.co.uk | 69
Data File.
Ask Lawgistics .com
Car Dealer Club lawyers at Lawgistics answer dealers’ legal questions. Join for £49.99 a year to get advice like this when you need it
Is there leeway over notice period?
Q
Our technician has handed in his notice. His contract states the period is three months but he has requested to leave before then. What are the options? Firstly, the statutory notice period is one week’s notice if the employee has been employed for between one month and two years. After two years’ service, one week’s notice is required for each year up until 12 years. If service is over 12 years, the maximum 12 weeks’ notice will apply. This is the minimum notice required by law. A contract of employment may provide for a longer notice period but it cannot be less than the statutory. It is worth remembering that the notice period works both ways. Therefore, if the contract states a period of notice, this notice will still be required if you were to terminate an employee’s employment (excluding cases of gross misconduct, as no notice is needed here). An employee may not wish to work their full
A
notice period if their new employer has requested that they start as soon as possible. If an employee leaves before the end of their notice period, they will be in breach of contract. When this occurs, you will not have to pay them for any period of notice that they don’t work. Realistically, there is not much you can do to prevent the employee from leaving. If you wish to sue based on breach of contract, it is costly and you will have to show that the company has suffered a real financial loss from the employee not working their notice period. Most employers would discuss the notice period and come to an agreement that both parties are happy with. But if an employer insists on the full notice period, the employee’s heart may no longer be in the job, which could affect their productivity. It’s also worth bearing in mind that an employee who hasn’t been allowed to leave before the end of their notice period could make
ADVICE
deliberate errors or may go on sick leave for stress, which would be difficult to disprove. It therefore may be worthwhile to discuss a suitable leave date and if you are unable to agree on a shorter notice period, it would be worthwhile informing the employee why, such as staff shortages or high work demands. If you are able to reach an agreement with the employee then it is advisable to confirm the new departure date in writing and state that the decision was voluntary on the employee’s part and mutually agreed by the company. This will help to provide evidence if at a later date the employee makes allegations of unpaid wages or unfair dismissal. A longer length of notice would be appropriate for senior or complex roles that are difficult to recruit for. Therefore employees in different job roles may have different periods of notice, dependent on their positions at the company. For positions that are generally easier to fill, a shorter length of notice would be appropriate.
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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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Doctor, doctor...
Q
One of our sales staff has been off sick for a few months and their GP says they may come back on a ‘phased return’. We’re not clear what they can and can’t do at present so wrote and asked the GP for clarification. The employee authorised us to write to the GP but the response is only sent to us if the employee agrees with the contents. Is this reasonable? An employee has the legal right to request to see the medical report before it is sent to the employer. If it is requested the report may not be sent unless the employee specifically consents to this and notifies the GP. The employee may also ask the GP to amend the report before giving consent for its release. If the GP agrees, the report is then amended. If the GP does not accept the amendment, then a statement from the employee reflecting their objections will be attached to the report. There are few very limited circumstances when an employee will not have the right to see the report, eg, if the GP believes that seeing it might cause serious harm to their physical or mental health or that of others.
A
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WHY I LOVE LAWGISTICS
To not have legal backing is crazy – that’s why we depend on the experts GIVEN the unpredictability of used cars, it might seem foolish to not have legal backing behind you. That’s certainly true for Sheffieldbased Excellent Cars, which signed up to Lawgistics five years ago as the firm was growing in size. The car supermarket, which deals with all makes but specialises in seven-seaters, has more than 100 cars on its site. Noel Palmer, operations director at the dealership, said: ‘As the law keeps changing, we needed someone we could turn to if an issue arises. We can’t predict what’s going to happen with a used car we sell, but should something go wrong then Lawgistics is always there to advise us on the next stage of the process.’ Within the past year, the dealer has been taken to court three times, and with Lawgistics’ representation it has managed to win each case. One particular case involving a Honda Civic proved to be particularly complicated. Palmer said: ‘We had sold this hybrid model and the customer tried to tell us that the batteries
weren’t performing as they should. ‘He made a big fuss about how we were responsible for the state of the batteries in the car, even when it was a decade old. It was totally ridiculous. ‘Thanks to the help of Lawgistics, the judge saw sense that with a 10-year-old car, of course the batteries are going to have deteriorated – it’s just wear and tear. ‘We won the case, and have done so in all recent instances using the help of Lawgistics.’ Palmer added that Lawgistics was always in the dealer’s corner in ‘times of need’. ‘Lawgistics is always there fighting your corner,’ he said. ‘The beauty of it is that you avoid putting yourself in any awkward situations, as it is always behind you whenever you have any legal questions. ‘I would highly recommend its services to any dealer that is not fully up to speed with all the new legislation that keeps changing all the time. To not have legal backing is crazy really.’ Ted Welford
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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 | 71
Auctions.
The problems of technician recruitment.
James Litton, p84
Pearson
AUCTION STATIONS
The team at BCA Blackbushe have been praised for ‘going the extra mile’
NEW AGREEMENT
‘Exceptional results’ at BCA see HR Owen extend deal
H
R Owen has signed a new two-year exclusive renewal deal with BCA to manage the remarketing of its partexchange vehicles. BCA Blackbushe will stage a sale of HR Owen high-end luxury vehicles on alternate Wednesdays, building on the highly successful existing programme that forms part of the regular Top Car event. The HR Owen sale programme has generated a loyal following of buyers both in-lane at Blackbushe and via Live Online, with an average sale price of £32,000 and an 87 per cent first-time conversion. Mark Rose, the group used car director at HR Owen, said: ‘The team at BCA Blackbushe continue to go the extra mile for HR Owen, delivering a highly effective sales programme that generates excellent conversion rates and strong price
performance. BCA’s ongoing commitment to innovation and service continues to deliver exceptional results.’ BCA’s major account manager, Suzanne Spencer, added: ‘The established HR Owen sales attract a large crowd of buyers both in the auction lanes and online and we are delighted to extend the relationship for a further two years. ‘HR Owen is a respected brand synonymous with luxury, prestige and performance models and these sales generate a genuine buzz with our Top Car buyers, who know they will be presented with an exceptional choice of vehicles.’ HR Owen is one of the world’s largest retailers of Rolls-Royce, Bentley, Ferrari, Lamborghini and Bugatti cars. The company, whose HQ is in London, operates 14 sales and 17 aftersales sites.
Volume increase is expected in April AVERAGE age and mileage should remain steady over April, according to the National Association of Motor Auctions (NAMA). Commenting on the latest figures from its market attitude survey, James Tomlinson, association chairman, Car dealer new strip ad said: Revised ‘With more part-exchanges generated on
the back of the plate-change month of March compared to the first two months of the year, auctioneers are expecting to see an increase in vehicle volumes this month.’ The Euro 6 market looks set to be strong, with more than 40 perPage cent of 4/4/18 12:01 1 NAMA’s 34 members expecting an increase in values.
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
72 | CarDealerMag.co.uk
B
CA’s commitment to developing its people continues with significant uptake for both apprenticeship and graduate development programmes. The programmes have been established to provide the current workforce with up-to-date training, build a future skills base to meet the future needs of the industry, and attract the best new talent with the potential to become future business leaders. BCA is committed to building effectiveness and efficiency across the business through training and development and, as Europe’s largest used vehicle marketplace, it now offers apprenticeships covering a wide range of disciplines and automotive specialisations. A Lean Improvement Practitioner’s course is the most recent addition to the expanding list of more than 35 different qualifications. Apprentice numbers at BCA increased significantly during 2018, with a combination of new recruits undertaking qualifications from Level 2 Business and Administration right through to a number of existing employees studying for qualifications at Level 7 Master’s Degree. The introduction of business apprentices has been a real success and is building for future growth in the business. The success of the original graduate programme, launched only five years ago, has already seen a number of successful candidates rise quickly through the business into influential leadership roles. The Graduate Management Development Programme continues to grow and recruitment has started for the 2019-2020 intake. In 2019, the business launches its new BCA Fast-Track Management Programme, which allows both new graduates and current employees the opportunity to cover an accelerated crossdivisional programme.
Excellent variety of weekly stock from premium sources
The Fleet Auction Group
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Building a skills base to meet future needs of our industry
Fleet Car Sales every Tuesday at 1pm & Thursday at 10am Van sales every Wednesday at 10:30am Wheelchair Accessible Vehicles fortnightly, Wednesdays at 10am Truck, Trailer & Plant fortnightly, Wednesdays at 12noon Collection of vehicles 24 hours a day, 7 days a week Purpose built 15 acre auction complex Enclosed and heated auction halls and viewing area Vehicle refurbishment facility The UK’s finest auction restaurant Central UK location (Leicestershire) NAMA Vehicle Grading
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Taking Stock.
Remarketing specialist BCA analyses its latest Pulse report to give its thoughts on matters that dealers need to consider in the months ahead
Realistic reserve setting will keep buyers actively engaged It’s good advice that never goes out of fashion – vendors need to remain disciplined, according to Stuart Pearson, chief operating officer for BCA’s UK remarketing operation.
U
sed car values rose at BCA in March with average values for fleet and lease, dealer partexchange and nearly-new vehicles all improving compared with the previous month’s figures. The headline figure fell back slightly with a changing model mix, as a higher percentage of dealer part-exchange cars reached the market following the plate-change on March 1. Year-on-year, the headline value was marginally ahead by £25. Demand continues in the market for accurately valued vehicles in the best condition, and reflecting seasonal patterns we’ve seen a lift in volume from both fleet/lease and dealer partexchange sources. The seasonal run of public holidays over the Easter period and into May has the ability to put
pressure on the market at a time when supply is typically plentiful. As ever, our advice is for vendors to be disciplined around the remarketing process, with enhanced preparation, accurate descriptions, comprehensive documentation and, most importantly, a realistic reserve setting ensuring that buyers remain actively engaged. Fleet and lease values averaged £11,546 at BCA in March – a modest month-on-month increase for the second month running and well ahead by £424 (3.8 per cent) compared with a year ago. The retained value against original MRP (Manufacturer’s Retail Price) was effectively unchanged at 44.1 per cent when compared to 2018.
Average fleet and lease value :
£11,546
Average age at time of sale has risen slightly to 39.9 months, with average mileage of 39,381 down by 194 compared with a year ago. Average dealer part-exchange values continued to rise at BCA, with March 2019 showing a £50 increase over February to £5,217. The improved quality of product on offer in this sector helped to push year-on-year values up by £322 (6.5 per cent), with average age and mileage decreasing compared with the same month in 2018. Sustained demand for nearlynew vehicles at BCA continued into March, with values rising to £23,314 during the month. Values were up by £4,445 (23.5 per cent) compared with the same month last year. Model mix has a big effect in this low-volume sector, with brand-specific winners and losers.
Average dealer part-exchange value:
£5,217
CarDealerMag.co.uk | 73
Market Insight.
...in association with ASE-global.com JONATHAN BRADY / PA WIRE / PA IMAGES
Investor worries have now moved on from WLTP to Brexit, says Mike Jones
Year-end results painted a very mixed picture for auto retailers Many groups are making strong profits despite market change and uncertainty, says Mike Jones.
W
hile the majority of the industry is running around desperately trying to hit their vital Q1 new car registration targets, March also sees the listed automotive retailers with a December year-end file their annual results. In addition to providing a picture of 2018, this year we got an assessment of current trading which showed a big variance among the retailers. Following from Inchcape’s announcement last month, we also saw a raft of goodwill write-offs as the listed companies reassessed their future profitability forecasts, reflecting a more cautious outlook (even though they all assumed we will ultimately reach a Brexit trade deal). Share price performance While the average share price movement amongst the listed motor retailers for 2019 is positive and mirrors the performance of the FTSE 100, there are clearly some winners and losers. Vertu is the only retailer to have not seen growth from the start of the year and some other retailers have given back some of their strong early gains. Investor worries have now moved on from WLTP to Brexit, but the financial results show that many of the retail groups are able to make
strong profits despite significant market change and uncertainty. Financial performance Pendragon announced a disappointing set of results with underlying profit before tax down 21 per cent. The overall business produced a loss of ÂŁ44.4m as a result of a goodwill impairment of ÂŁ89m. The vast majority of its brands received a write-down, with only Ford not requiring one. In addition, Pendragon wrote off the goodwill previously held in Car Store, which is somewhat surprising given the focus on the growth of this used car supermarket brand. The results from Marshalls and Lookers were rosier, with Marshalls managing to out-perform the prior year by 1.2 per cent which is some feat given the WLTP challenges which hit the sector in 2018. Used car performance in particular was strong, with growth in volume and profitability. Marshalls chose to impair goodwill in its BMW/Mini and Nissan divisions. Lookers was not quite as strong, with underlying profit before tax back nine per cent, albeit with it choosing to not impair any of its goodwill balances. Outside of the formal announcements, we had a trading update from Vertu with preliminary results for their financial year ending February
Share price movement since the start of 2019
Pendragon
11.3%
24.4%
Vertu
-8.7%
-0.1%
Lookers
-1.6%
9.3%
Inchcape
1.1%
3.5%
Cambria
-3.9%
12.8%
Caffyns
2.6%
5.3%
Marshall
4.0%
9.0%
Motorpoint
-8.2%
-10.8%
BCA
-2.9%
-10.2%
Auto Trader
9.6%
14.7%
2019. Whilst there were no overall profitability results given, there were significant increases in revenues with indications that this may have come at the expense of margin. We also saw a positive trading update from Cambria for the first five months of their current financial year, with trading ahead of the prior year both in total and on a like-for-like basis.
Mike Jones is chairman of dealer profitability specialist ASE plc. You can read his column here every month. 74 | CarDealerMag.co.uk
Share price movement during March 2019
On Your Side.
...in association with Legalsolutions4u
Benefits of having access to mediation specialists Are you dreading the possibility of having to engage in alternative dispute resolution? Legalsolutions4U can help.
W
e regularly receive calls and emails from dealers who have been told they must participate in alternative dispute resolution (ADR). Often the dealers will receive a letter from one of the many ADR providers offering their services for a fee. Understandably, dealers are unhappy at having to pay a fee to negotiate with a consumer when 1) they are car dealers and negotiate for a living and 2) by the time mediation is offered, the dealer has already made their position clear to the consumer and so they do not want to waste more time in fruitless discussion. To clarify, the only dealers who legally have to participate in ADR are those who are a member of a trade association that makes ADR compulsory. Those dealers have no choice as long as they remain affiliated to that particular trade association. If they leave the trade association, there is then no obligation to participate and they are then free to decide if it is something they want to use on a case-by-case basis. However, mediation is an effective way of
resolving disputes without the stress and expense of going to court. It is also a fast method of settling the matter, as a satisfactory outcome can usually be reached within a day. Mediation is not about who is to blame, it is simply about providing an environment where each party can have their say and be listened to and ultimately reach a settlement that is acceptable to each party. Mediation is a flexible process that involves a neutral third party, a mediator, who helps both sides settle their dispute. The mediator may be able to explore alternative solutions that may not have been considered by the parties or are not possible or available through the courts. It is possible to re-establish a positive relationship between the parties once the dispute is resolved. If the mediation is unsuccessful, you have
neither prejudiced or sacrificed any legal rights nor delayed significantly any ultimate settlement by the legal process. The cost can be shared between both parties and depends upon the value and complexity of the claim. In some circumstances, ADR is appropriate, but if the dealer is not allowed the choice of whether to participate, it could not only waste their time (ADR providers suggest the process could take many weeks) but it could lead to much larger than necessary pay-outs. We mustn’t forget either that free mediation is offered as part of the small claims process should the consumer issue a court claim for £10,000 or less. Also, an ADR provider’s decision is normally binding on the dealer but the customer is free to ignore any decision that doesn’t suit them and go to court anyway. If you are on board with Legalsolutions4U, you are automatically assigned with Automotive Mediation for FREE! If you have any dispute with a customer in the near future and they wish to mediate, you can advise them to contact your mediation specialist at Automotive Mediation.
For more information on how to protect your dealership and increase your profitability, call 0191 481 3992
CarDealerMag.co.uk | 75
Extra Cover.
...in association with Gallagher
Top tips for businesses looking to purchase automotive cover How many brokers to approach? What to include in your policy? Who to choose? Leon Bosch explains all.
G
allagher Automotive Team has been protecting a full spectrum of motor trade businesses across the country – from small family firms and independents up to the largest franchisees – for over 30 years. Our nationwide team of specialist brokers places over £33 million of premiums annually with a wide range of specialist motor trade underwriters. If your business is looking to arrange automotive cover, the Automotive Team recommend the following: 1. Hire a broker Deal with brokers who 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 competitive deal, but one that still leaves your business protected. 2. Start your renewal process in good time In order for an insurance broker to do the best job possible, it’s important to give them adequate time to analyse your risk, market your risk to the insurers, compare the various quotes received and report back with an appropriate available option. 3. Don’t focus solely on the premium The most important thing is to safeguard your business and make sure you are adequately covered. We have seen garages remove key
coverages in order to reduce premium, which has left them short following a claim which would have been covered had they not removed it from the policy to reduce the premium. 4. Protect yourself and your business A standard motor trade policy won’t cover everything, which is why you need a reputable policy with a good insurer. Their policy should include road risks, material damage/business interruption and public/employer’s liability as a starter for 10, but there are many other areas which may pose a risk for you and your business, for example management liability, cyber issues and crime. You should use a broker that goes beyond covering your basic risks and advises you on other areas and potential gaps in cover. 5. Read the small print: It is important to get the right cover in place, but has your broker made you aware of the exclusions, subjectivities, warranties and policy excesses applicable? These should all be confirmed to you prior to taking out the policy. Ask yourself: do you know what your policy excess is for each section? Do you have a coinsurance clause on your policy? If you are not aware of these, then in the event of a claim, you could receive a settlement much lower than you were expecting.
6. The condition of average Not everyone is aware that insurance policies may include an ‘average’ clause. This clause means that if you are underinsured, your insurance company could reduce any claim in proportion with the gap. For example, if you had £100,000 of machinery and plant cover, but should have had £250,000, then after the application of ‘average’ a £20,000 claim could be reduced to £8,000. 7. Don’t use too many brokers You may believe that by using multiple brokers you are certain to come up with the best premium, however this can have the opposite effect. There are a limited amount of reputable motor trade insurers, and some of them may simply ‘no quote’ if they see a quote request for the same business from more than two brokers, which means you’ll receive no quote instead of a potentially great quote. We would suggest you consider using your holding broker and no more than one other to obtain alternative quotes. Any more than that and you could simply block the market. • To learn more about the Automotive practice, and how it could help you and your business, contact the Automotive team on 01582 542 330 or automotive_enquiries@ajg.com
‘You should use a broker that goes beyond covering your basic risks.’ 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
76 | CarDealerMag.co.uk
Gallagher Automotive Specialist Motor Trade Insurance
Helping protect businesses across the country for over 50 years - from independent repairers and small garages to larger franchise dealerships Contact us to find out more: T:
+44 (0) 800 612 2284
E: automotive_enquiries@ajg.com
GST-225260264
ajginternational.com Arthur J. Gallagher Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered Office: Spectrum Building, 7th Floor, 55, Blythswood Street, Glasgow, G2 7AT. Registered in Scotland. Company Number: SC108909. FP04-2018 Exp. 04.01.2019 Š2018 Arthur J. Gallagher & Co.
CarDealerMag.co.uk | 77
Key Notes.
...in association with Traka
Key management technology of tomorrow is ready to go today Car manufacturers’ futuristic visions don’t always match up with day-to-day practicalities, says Paul Smith.
Y
ou only have to glance at the keys to the latest prestige cars to see that the humble barrel-lock ignition key is undergoing something of a transformation. Aston Martin has decided to extend its focus on beautiful design right through to its Sapphire Crystal Key, for example. Not much additional functionality there, you might argue, but it’s definitely not something you would want to drop on your forecourt! BMW and Audi have probably gone the furthest of all marques by creating their LCD display key. This is more like a small smartphone. Furthermore, it no longer requires insertion into the dash for ignition. The car’s engine is fired up by either using a button on the key itself or, like many higher-end cars today, via a simple push button in the dashboard. The BMW display key has an LCD display which offers touchscreen and multi-level functionality. It can show the status of the car: which doors are locked, whether any windows are open, fuel range and service requirements. The first thing that is noticeable about the display keys is that they are much more expensive to replace; much more likely to be damaged if dropped and the display screens need to be kept clean. The other interesting aspect is that their designers have very often dispensed with the in-built ring which enables a label or key ring to be attached easily. This is important because it creates two problems for car dealerships and service centres: l How do I attach an identification tag onto these keys? l How do I make sure these keys are kept in pristine condition as they pass between a range of
staff in the dealership/service centre ? Traka Automotive has helped to solve this problem by fabricating soft bags with metal rings which protect any key displays and enable easy attachment to a Traka iFob so that dealerships can continue to monitor the whereabouts of keys using the Traka Automotive key cabinets and software which are now in wide use. However, if you look only a few more years out, we are starting to see the future of car keys being much more about smartphone-based authentication and access. Volvo has already developed its model for the keyless car which enables access to keys to be shared in software via your smartphone. Volvo envisions a world where car sharing and car renting will be managed in this way. However, again, the vision does not quite fit with the practicalities of a car dealership and service centre in which access to a car may be required by more than half a dozen people. Does that owner need to manage multiple permissiongiving handovers on his phone while busy at work miles away? It may be that day-to-day, when the main owner is driving his car to and from work, he will do this via his smartphone in the future. But when the car is due for a service and is going to require valet parking, a second ‘physical’ key may need to be taken along to avoid the workload associated with authenticating (and then deauthorising) multiple people to drive your car. When the time comes to move away from physical to soft keys and digitally-authenticated
access, Traka Automotive’s parent company, Assa Abloy’s Global Solutions, has already developed the technology and digital authentication infrastructure for software-based key management. This technology is already in wide use to give hotel guests limited-time access to their hotel rooms, for example. A combination of RFID door locks supported by a small Bluetooth low-energy board and mobile access enables this. It uses cloud-based Assa Abloy Global Solutions Mobile Access Services to provide authenticated access when the guest shows his/her mobile to the booked room’s door handle. This technology can be applied to provide soft key access to vehicles when the market is ready to make this transition. The car key management technology of tomorrow is already ready to go when the time is right.
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 78 traka-auto | CarDealerMag.co.uk 1-6pg.indd 1
15/12/2016 09:56
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80 | CarDealerMag.co.uk
We encourage more leads for you by protecting consumer privacy with direct communication on our platform
Sean Speaks.
...in association with Close Brothers Motor Finance
The benefits that come with offering point-of-sale finance Even in the age of information, car buyers value the expertise dealers offer, says Sean Kemple.
T
here are a number of benefits that come with offering point-of-sale finance. For dealers, finance can be an enabler to help sell more vehicles, and for the customer it can be the means to driving their ideal car. Benefiting your customers The obvious benefit of finance for customers is a fixed-rate monthly payment that provides an affordable means to pay for, or lease, the vehicle they need. With a range of product options available (including Conditional Sale and Personal Contract Purchase) alongside adjustable deposits, loan terms and final payments, we can help find the right product and most affordable monthly repayment for your customer. Arranging point-of-sale finance is easy and provides your customers with a ‘one-stop shop’ solution to their new vehicle. By opting for dealership finance, customers are given a level of protection, too. For example, the vehicle will be automatically put on the HPI register and we will complete vehicle checks – including whether it’s been stolen, written off or whether there’s any outstanding finance. Helping your bottom line The benefits of point-of-sale finance are not just for your customers. In an age where customers have more choice and easy access to a huge range of vehicles nationwide, finance can enable dealers to take potential customers out of the market quickly and secure a sale. Offering finance widens your potential customer market, reaching people who may not have the savings to buy the vehicle they want outright. What’s more, finance can help protect your profit per unit (PPU) during a time when wholesale vehicle prices are going up and profit in the metal is less than it used to be. Finance can supplement your profit margins by providing another income stream and access to a new type of customer at a time when the cost of running a business is on the rise. Dealer advice is still valued Before a customer arrives at your dealership, they will likely already know the vehicle they want and will have researched their finance options. However, despite living in the ‘age of information’, our customers are telling us that they still want and value the advice they receive
TOP TIPS • Qualify your customer at the outset and ask the right questions early. • Invest the time to truly understand your customer’s need to really add value. • Have the finance discussion upfront with every customer – they might not realise their full options. • Advertise the availability of finance across all channels – customers expect it. • Display finance options, for a range of alternative products, on each car – be clear and transparent to ensure the customer can make an informed decision themselves. • Understand your responsibilities as a dealer to impart information and share your knowledge.
from dealers. This expert knowledge includes educating potential customers on their finance product options so they have all the information they need to consider how they might best fund their vehicle purchase. How to position finance Key to positioning finance effectively, and indeed best practice for the whole sales process, is trying to understand your customer’s needs and affordability as early as possible. Simple questions such as – ‘why does this vehicle interest you?’, ‘what is most important to you when considering your next car?’, ‘what do you use your vehicle for?’, ‘how do you expect to pay for any balloon payment?’ and ‘do you want to own the vehicle or lease it?’ – all help validate the customer problem you are trying to solve with a new purchase. Qualifying your customer early will allow you to add value to the customer buying decision, providing clarity on issues we know are confusing
customers such as fuel-type and different finance options. Finding out how your customer intends to pay for the vehicle at the outset means you can offer the most support, too. Key to introducing finance is having a discussion around affordability with your customers, looking at the most suitable product options for them and being as clear and transparent as possible about the full potential costs of running the vehicle. Try to establish their current vehicle running costs and which related products they may be interested in, such as warranties, paint protection, service maintenance and insurance costs to name a few. It’s in the customer’s best interest to complete a full life cost analysis at the point of sale. Overcoming objections Even though your customer may have already researched alternative methods of paying for their vehicle, it’s important they understand the benefits finance can offer versus using savings or a bank loan to enable them to make an informed decision about the best route for them. By opting to spread the cost over a number of months, customers may find they have more choice than by using savings alone, with more cars within their financial means. What’s more, it can often be better to finance a depreciating asset than use savings. For example, by leaving £10,000 in the bank and using finance instead to purchase the car, in a year’s time a customer could still have £10,000 rather than a car worth £8,000. We believe our expertise in motor finance too can add value. We pride ourselves on reviewing applications based not only on the customer and the proposed terms of the finance agreement, but also on the vehicle itself. We work in partnership with our dealer partners to discuss options and ensure the deal is right for the customer and their financial circumstances. If the length of the proposed agreement is a barrier for your customer, you can reassure them that our products allow them to settle their agreements at any time throughout the repayment period. They are also able to overpay at any point in the agreement, without any extra charges.
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 | 81
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82 | CarDealerMag.co.uk
Recruitment. RESTRUCTURING
Epyx creates dealer engagement team
E
pyx has created a used car engagement team as the number of dealers acquiring stock via its 1link Disposal Network platform continues to grow. Mark Davis has been named as senior online engagement manager and Lauren Clifford becomes online engagement manager for the platform, which is used for remarketing by several major fleets. Vicky Gardner, head of remarketing at Epyx, said 1link Disposal Network was enjoying an increase in its buyer base among franchise dealers, independents and car supermarkets. She added: ‘We saw substantial growth for the platform last year, with the buyer base increasing by 23 per cent and the volume of vehicles sold rising by 15 per cent. ‘This has continued into 2019. To capitalise on this success, the new engagement team has been created to help existing customers get the most out of 1link Disposal Network and to increase new customer penetration. ‘While these are new roles for Mark and Lauren, both are long-standing members of the 1link Disposal Network department at Epyx and have in-depth knowledge of the remarketing sector.’
Gardner added that car supermarkets would be especially targeted by the engagement team given their current level of growth and need for high-quality stock: ‘It appears to us that car supermarkets and 1link Disposal Network are very well matched. Our proposition is based on providing top-grade, well-priced stock from reputable fleets, using technology to make the purchasing process as easy as possible. ‘This very much fits in with the business model of most of the major car supermarkets, and we are already having productive conversations with some of the most well-known and respected ones.’
The creation of the engagement team is part of a restructure of the 1link Disposal Network department at Epyx to incorporate the existing settlement and claims functions. Gardner said: ‘The whole team is growing alongside the platform and we have made some changes designed to deliver a much-enhanced level of support for our customers.’ Epyx’s 1link Disposal Network is one of the longest-established sources of trade stock in the UK. Pictured above are Epyx’s entire 1link Disposal Network department including the new integration team.
CarDealerMag.co.uk | 83
Data file.
James Litton
TRADER TALES
How can we attract more technicians to the industry?
H
ow many people reading this article work for a motor retail business that is currently recruiting technicians? I know I am. So are both of my colleagues running our other franchised dealerships. In fact, so are our body and paint businesses. So why is this such a widespread issue? It starts with apprentices. While the government has tried hard to encourage young people to take apprenticeships, there appears to be a declining appetite to apply to become a technician. There is a desperate need for employment diversity in the trade, yet getting young people to apply regardless of gender or ethnic background is a challenge. Recruiting an apprentice or two is the first hurdle; recruiting a competent and motivated apprentice is another. Social media is awash with memes and parodies of millennials, providing a sometimes accurate commentary on what has been described as the ‘snowflake’ generation. Whether or not you agree with the notion of kids being softer today, it is noticeable that the compatibility between older technician trainers and apprentices is not always that easy to reconcile. So, you have your apprentice, you managed to get them through their training without issue, what do you pay them? Technician wage inflation is akin to that of a third world country with a despotic leadership. There is no doubt that some master technician salaries with bonuses are way in advance of many aftersales managers. Is that wrong? Not necessarily, but manufacturer, leasing and warranty rates are not keeping pace with this inflation. Technician retention is not always directly related to the dealer or market conditions. Technicians can get bored of working on the same brand of car for a long period and in the same environment where investment is sometimes limited compared with a showroom facility. This is exacerbated when applied to younger technicians for whom transience is more acceptable. Finally, there is the threat posed by independents or specialists. Technicians did not join the industry because they wanted a shot at Hollywood, yet the pressure around video production is as palpable as it would be at MGM Studios. This, combined with decreasing book times for routine maintenance, means that for many experienced technicians, a life without those distractions can be welcome. I try to finish my articles on a high note, proffering ideas or solutions, but in this case it is very difficult to do so. For now, I will keep digging that hole in the sand and stick my head firmly in it.
‘There is a desperate need for employment diversity in the trade.’
James Litton is general manager – director of Volvo Cars Poole. He always has something to say about the industry he loves. 84 | CarDealerMag.co.uk
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How I got clean away with my car valeting deception
A
s a valeter for a fairly large used car dealership, I’m a pretty hard-working individual. One minute I’m hunched over a soon-to-be-gleaming alloy, the next I’m examining a ruined pair of rear seats in a car traded in by someone who swore they didn’t have a dog even though a restless Golden Retriever has clearly been at work. Then I might be turning my attention to a set of carpets that have about five kilos of mud on them. Thus, in my first full-time valeting role at a small prestige car dealership a while ago, it was rather inconvenient when I sustained quite a serious injury to my back after six months or so in the job. One failed rowing trip – involving a jagged rock just below the surface of the water – and I suddenly felt like I was 75; I was 20, if you’re curious. At first, I tried to push on with my work despite the pain, but it quickly became clear that I wouldn’t feel any better any time soon if I didn’t rest up a little. However, I was the only valeter at the dealership, so if I said I couldn’t do it for a while, there was a good chance of me no longer having a job when my spine no longer felt like the leaning tower of Pisa. I needed a solution that would allow me to keep the job without actually having to do what was expected of me. Deception it was, then. This being quite a small dealership, I would usually move cars half a mile down the road to my driveway so I didn’t take up too much of the limited forecourt space. Happily, about a mile further from the dealership, there was a hand car wash, which the MD had previously referred to as being ‘terrible at their craft’. Now, the MD wasn’t a particularly observant man, so when I first took one of our stock to the hand car wash, I hoped against hope he wouldn’t notice anything untoward, and thankfully he didn’t. A month passed before I no longer winced when bending down so was able to resume my duties. Over that time, I must have taken at least 40 cars to the facility; whether they thought I was stealing them or something, I have no idea, but thankfully it went off without a hitch. True, the whole exercise left me pretty severely out of pocket, but at least I had managed to remain in gainful employment. If my current boss reads this and works it out, don’t worry, my back is fine, and I valet every car myself. Promise.
‘It became clear that I wouldn’t feel any better any time soon if I didn’t rest up.’
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86 | CarDealerMag.co.uk
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Long-termers. LATEST FROM THE FLEET...
Volvo V90 Hybrid Volvo V90 is driven to the Alps in the ultimate long-term road test – how did it fare? by JAMES BAGGOTT @CarDealerEd
T
here’s nothing quite like a serious road trip to really get to know your car – which is why I find my annual trip to the snow-capped Alps so important. Not only does it prove what my long-termer is like over distance, I also get a true picture of fuel economy, practicality and, on the 1,500-mile round trip, a very good idea of comfort. The Volvo V90 has proved to be perfectly suited to the task. First up, it excelled in the practicality stakes. With the split-fold rear bench down, it offers copious space for a snowboard and all the gubbins that go with it, while still offering a suitable rear seat should it be needed. In fact, the boot is so cavernous that, unlike other cars that have their rear view blocked by all the cold weather ancillaries needed for such a holiday, there is so much space that the view out of the back was completely unobstructed. To prepare for the trip, I asked Volvo if they’d help by fitting some winter tyres. The T8 hybrid model I’m driving has all-wheel drive available as a setting when being used in electric mode, so I thought the addition of some grippier snow tyres would make it unstoppable. The V90 returned from the workshop on the day I was due to depart, so after a cursory glance around the car and with the kit thrown into the back, I headed to Portsmouth to catch the Brittany ferry across the Channel. When I arrived, sitting in the queue waiting to board, the tyre pressure monitoring system indicated one of the rears was low. I checked it over and could see nothing wrong, so assumed the system hadn’t been reset correctly when the tyres were changed. A few button presses later on the giant touchscreen and all was well. This was the first time I’d crossed the Channel on holiday using the overnight ferry, usually opting for the Chunnel, and I must say it was a revelation. If you make sure you book a comfy cabin, you can sleep the hours away and wake up refreshed and ready for the eight-hour drive across France on the other side. When we hit France, the T8 had used most of its 25 miles of electric range, and as I crossed the country I realised that when I got to the Alps and might need to call on the all-wheel drive, I’d need
James had a few delivery duties to perform, below, before going on his ski trip to the Alps
THE KNOWLEDGE Model: Volvo V90 T8 Twin Engine Price: £70,240 (as tested) Engine: 2.0-litre petrol, electric motor Power: 390bhp Torque: 400Nm Top speed: 155mph 0-60mph: 5.0 seconds MPG (combined): 141.2 Emissions (CO2): 46g/km Mileage: 4,219 THIS MONTH’S HIGHLIGHT: Getting out of it in the Alps after eight hours and feeling as fresh as a daisy. some electric to help me along. Not wanting to stop to top up, and knowing the T8 can’t accept fast charges anyway, I used the car’s recharge-onthe-move function. At the press of a button, the engine charges the battery pack for you as you drive. This takes around an hour of driving time, and once it’s topped up you can elect to hold the charge for later. To do this you simply isolate the battery pack from the drivetrain, but you need to remember to do it every time you turn the engine off and on again, otherwise it defaults to using it. By the time I got to the Alps, I didn’t actually need the all-wheel-drive function as the roads had been nicely cleared by the efficient French snow teams, but it was good to know I wouldn’t have been stuck all the same. As we crossed France, the V90 really came into its own in the comfort stakes. The seats are incredible, the driving position near perfect and the frankly staggering stereo system ideal for teaching my eight-year-old daughter a deep appreciation of Queen’s greatest hits. I love the fact the V90 has Apple CarPlay too, as I use it for pretty much everything, including calls
and replying to the odd message on the go. And now Google Maps has been integrated into it, I find myself reverting to my phone for navigation too rather than the in-built Volvo system. It didn’t help navigate Paris, though. That was one downside of getting the Portsmouth-to-Caen ferry over the tunnel – the quickest way south to the Alps was via the congested capital. For those of you who have made the trip, you’ll know there’s one almighty long and deep tunnel that cuts across a swathe of the city. That’s great, but midway through the tunnel the motorway splits into two and at that point you’re so deep underground that Google Maps loses reception. It can be a little stressful, so make sure you know which way you’re going first. Fuel economy took a massive nosedive on my French adventure. By the time I got back, the V90 hybrid had recorded an average of just 30.1mpg – that’s pretty poor by any measure. Comparing it with the diesel V90 I ran before this one, I really do love the T8’s smoothness, refinement and silence, but am not sure it’s worth the huge premium in price or fuel costs over the equally brilliant diesel. I’ve only a few weeks left with the Volvo before it’s due to go back to the manufacturer. I’ll be very sad to see it go. CarDealerMag.co.uk | 87
Long-termers. LATEST FROM THE FLEET...
Seat Ibiza FR After getting us safely through the winter, KY68 ZXK is looking good in the welcome spring sunshine. by DAVE BROWN @CarDealerDave
I
t’s commonly thought that people get a bit more eccentric as they grow older – and I’m rather worried it’s happening to me. I was thinking this the other day as I was running a few errands in our long-term Seat Ibiza FR. You see, the colour is so attractive and distinctive that I’ve found myself acknowledging motorists behind the wheel of other Seats with the same paint job. Aronas, Atecas, Ibizas… they all look pretty cool with the Spanish manufacturer’s metallic Eclipse Orange finish. And to give the lie to the fact that people in the south are unfriendly (I live roughly midway between Portsmouth and Southampton), a few of them actually respond! More out of sympathy than anything else, I should think. Anyway, the car is looking particularly good at the moment after its regular weekend spruce-up at my local hand car wash. There is a bit of a downside to that though, in that by frequenting such an establishment, I have incurred the wrath of Car Dealer’s Ted Welford. As well as being a motoring writer, Ted valets cars at the weekend and is sure he can do a better job than the guys I use. I might let him loose on KY68 ZXK in time for my next write-up, so watch this space. One thing I notice when the car is fresh and clean is that all the clever design touches Seat has added to the latest-generation Ibiza really do look the business. As I write this report, there have been quite a few nice days here on the sunny south coast and good weather really seems to enhance the car’s appearance. Its 17-inch ‘Dynamic’ alloy wheels look extremely sharp and the brilliant blackpainted door mirrors and body-coloured door handles add to the car’s sporty persona. I love the twin exhaust pipe styling, and the shapes of the light clusters front and rear are typically Seat – sharp and stylish. Inside, everything is just as appealing and extremely comfortable, with the Ibiza’s heightadjustable driver’s seat plus height- and reachadjustable steering wheel all making the cabin a nice place to be. One feature that is no doubt valuable but a tiny bit disconcerting is the Ibiza’s tiredness recognition system. Occasionally, I am to be 88 | CarDealerMag.co.uk
Looking sharp in the sunshine... our long-term Seat Ibiza FR after a weekend wash and brush-up
THE KNOWLEDGE Model: Seat Ibiza FR Price (as tested): £17,845 Engine: 1.0 TSI six-speed manual petrol Power: 113bhp Torque: 200Nm Top speed: 121mph 0-60mph: 9.1 seconds MPG (average): 56.5mpg Emissions (CO2): 113g/km Mileage: 5,122 THIS MONTH’S HIGHLIGHT: Reminding myself that this really is a cracking-looking little car. found driving the car in the small hours of the morning (it’s work-related, in case you’re interested) and although I would never drive if I felt I was too tired to do so, there is no doubt that I might not be at my freshest at, say, 3am. At such an ungodly hour, the activation of the tiredness recognition is perhaps to be expected. But it’s a bit odd to be told I’m feeling weary at 11am when I’ve only been behind the wheel for an hour or so! The tiredness recognition has only been activated twice in such circumstances and both times I have put it down to the fact that I have just glanced at the screen to change the radio station. It would seem that a second or two with my eyes not completely on the road ahead may have been diagnosed as fatigue. Then again, perhaps my driving isn’t as good as I think it is! Anyway, it’s another trip to Gloucestershire for KY68 ZXK this weekend. I’ll be taking Mum for lunch deep in the Cotswold countryside and the car will definitely need the services of a valeter after that. Get your cloths and shampoo ready, Ted!
OTHER CARS WE’RE DRIVING
Skoda Fabia Monte Carlo Mileage: 5,771 It’s been a stress-free month with the Fabia – something it’s establishing as a trademark for itself – and the newly installed LED headlight talked about last month is working wonderfully.
Isuzu D-Max Dependable and rugged, this brash, wide brute looks as though it could climb a whole mountain! by RYAN HIRONS @RyHirons
N
ow, normally in the pages of Car Dealer you’ll read about the latest cars we’ve got our hands on for a few months, having taken delivery of a particular machine and become acquainted with it over time – for better or worse. Well, on this occasion, we’re doing things a little bit differently. Regular readers may be looking at the pictures on this page and thinking, ‘hang on, that Isuzu had a lot more spotlights last month’ – and they’d be right. The reason is that during 2019 we’re getting a flavour of all that the D-Max has to offer. For the April issue, that meant spending time with the AT35 Arctic Trucks trim – the ‘look at me, I can conquer a mountain’ end of the range. Yes, its beefier looks and capable additions make it a real off-road brute (and hilarious fun, too), but it’s also the niche option in the D-Max line-up – and is undoubtedly going to be a bit too all-out for most buyers. And that brings us to D-Max #2 – ‘our’ Yukon double-cab model, which is aimed more towards everyday use. Don’t go thinking this is the RollsRoyce of pick-ups, though – it does still retain the rough-and-tough edge that’s to be expected of an Isuzu product, but compared with last month’s treat it’s certainly more liveable. So, for its £22,999 starting price, what does the
Capable of carrying 1.1 tonnes and towing 3.5 tonnes, this is a pick-up that’s ready for anything
Yukon package bring? Starting with the exterior, we have luxuries such as LED daytime running lights and full LED taillights, bright chrome detailing, 18-inch alloy wheels (complete with a full-size spare) and heated power-folding mirrors. Hop inside and things are admittedly a little spartan – with cloth upholstery taking pride of place in the cabin, although there is a leatherwrapped steering wheel. From the perspective of long-term ownership, there is a sense that everything inside is going to remain as it is for eternity.
Truth be told, there’s certainly room for the deployment of higher-quality materials. The cab is not without its techy highlights, though. A seven-inch touchscreen infotainment system is thrown into the mix, along with a reversing camera, which we found useful when parking with a stacked load in the back. As for its powertrain, it’s nothing new to us at CD Towers – it’s identical to the 1.9-litre turbocharged diesel in our recently departed AT35, meaning 162bhp, 360Nm of torque and plenty of agricultural-esque noises to be heard. This unit allows the D-Max to haul up to an impressive 1.1 tonnes of cargo in its bed, while also boasting a maximum 3.5 tonnes in towing capacity. So, how does it fare out on the road? Well, unsurprisingly, it’s much like its Arctic Trucks predecessor. It’s a brash, wide brute that – even though it does lose the beefed-up suspension and knobbly tyres of the AT35 in favour of a more comfortable experience – gives off the impression it could tackle the toughest challenge. Admittedly, we wouldn’t suggest using this as a machine for twisty country roads or replacing an inner-city hatchback – but for those in the market for a dependable, rugged workhorse that is actually liveable with day to day? It’s hard to look further than a Yukon.
THE KNOWLEDGE
Kia Ceed SW
Ford Kuga
Mileage: 7,113
Mileage: 23,863
After a couple of long jaunts our Ceed was looking a bit sorry for itself. However, Ted spent a recent Sunday afternoon cleaning LD68 HKN to restore its ‘Dark Penta Metal’ paintwork to its full glory.
It’s no secret that Cheryl loved the Seat Ateca she had a year ago, but she says this bad boy offers a smooth and comfy drive on both motorways and rural lanes. A more than worthy replacement.
Model: Isuzu D-Max 4x4 Double Cab Price: £22,999 Engine: 1.9-litre, turbocharged four-cylinder Power: 162bhp Torque: 360Nm Top speed: 112mph MPG (combined): 40.4 Emissions (CO2): 183g/km Mileage: 4,059 THIS MONTH’S HIGHLIGHT: Experiencing the lighter side of the Isuzu D-Max range. CarDealerMag.co.uk | 89
The last word JA M E S B AG G OT T
Against our better judgment, we give our CEO the final say each month
The good, the bad and the Urus... and an early vote for car of the year
W
e’ve had a huge plethora of test cars grace our car park at BBM HQ lately. Usually I like to poke around them a bit, sometimes borrow the more interesting ones for a trip to Tesco at lunch, but when it comes to driving home, tend to jump in my trusty long-termer and forget all about them. Not this month though. In the interests of writing a column that’s not my usual rant about something random, I thought I‘d go back to basics and give you a quick-fire review of the metal I’ve had the pleasure – and displeasure – of driving recently. It started with a 700-mile round trip to Liverpool, via the scenic parts of Chester, in the new BMW M5. I’ve long been a fan of the autobahn-crushing Beemers, but this latest M5 is quite frankly astonishing. Four-wheel drive when you want it, rear-wheel drive lairiness when you don’t, the 591bhp four-door can hit 60mph in under 3.5 seconds. It’s packed with tech, comfortable for miles and despite some heavy right-foot action, it still returned more than my hybrid long-term Volvo V90 T8 (31mpg), registering 33mpg over the road trip. Would I buy one? In a word, yes. Review over. Next up was a car I’ve been waiting to try for far too long – the Alfa Romeo Giulia Quadrifoglio. It might have a name like a meatfree Italian pizza, but if this were car of the year time, I’d be hailing this the winner. The 2.9-litre V6 BiTurbo is the equivalent of a Pizza Express American Hot (with an egg). Tuneful, soulful and packed with armfuls of power – 510bhp – it fires you forward at rates that permanently plant a stupid, kid-on-the-final-day-of-term grin on your face. It’s special, this car, very special indeed. From one sports car to another – this time Audi’s renosed R8 V10 Plus. I couldn’t make the launch, so road tester Jack Evans went to collect it. Actor Tom Hardy even made an appearance – he lived down the road and apparently loved them so much he wanted to come along. I’m not so sure what he loved. As a former R8 owner – I had an original V8 manual, which was perfect – I found the new model completely lacking in character. I hate to say it but it was just boring and woefully uncomfortable. I drove it to McLaren’s Technology Centre to see the unveiling of
their new Grand Tourer (more of that when the embargo lifts) and could not wait to give it back. Yes, the V10 sounds good, and yes, it might be the last time an engine like this graces a mid-engine sports car, but how at the same time can it be so dull? It’s just not very good and, at £184,000, ridiculously overpriced. From that disappointment to an incredible surprise. I visited Goodwood for their media day, celebrating the upcoming season. At the glorious race track, the team had assembled the poshest of manufacturers. From Ferrari to Lamborghini, Rolls-Royce to, er, Ford – there was a huge choice of cars for the press to have a go in. I missed the chance to try the Ford GT, wasn’t quick enough to grab the keys to the Lamborghini Aventador SVJ, but did manage to sweet-talk the Rolls-Royce PR team to give me a go in the Cullinan. This is one very, very posh SUV. One that has added lots of very expensive materials, fine touches like crystal drinks glasses for the rear passengers, solid metal buttons and huge automatic doors that shut themselves – it means you’re left with a car that feels like Buckingham Palace. When I saw pictures of the Cullinan, I hated it. When I read the reviews, I still didn’t get it, but now I’ve driven one, I totally understand why this £339,000 house on wheels is selling so well. It’s incredible. From the world’s most expensive SUV to one of the cheapest and arguably just as desirable: Suzuki’s Jimny 4x4. Elsewhere in the mag you can find out just how popular this Japanese Tonka Toy has become. Yes, it might look like a five-year-old has drawn a Jeep, but it’s so much fun. It just made me want to drive over things. Roundabouts, kerbs, chavs – you name it, I wanted to crush it with the Jimny. It was so good that when I had the choice of this or the Quattroformaggio for the weekend I chose this. Yes, really. And now I appear to have run out of words. Which is probably handy because I could write an essay on the Lamborghini Urus and how it could possibly be the biggest example of the Emperor’s New Clothes the car industry has ever seen. But I won’t go into that. What I will say is that the next time you hear someone say ‘urgh, all new cars are the same’ or ‘there’s no such thing as a bad car’, tell them quite categorically that they’re talking horse turd, because nothing could be further from the truth.
‘It might look like a five-year-old has drawn a Jeep, but Suzuki’s Jimny 4x4 is so much fun.’
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. 90 | CarDealerMag.co.uk
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