Car Dealer Magazine: Issue 140 by Blackball Media

OPINION: WHAT’S IN STORE FOR NEW CAR SALES? INDUSTRY LEADERS HAVE THEIR SAY

C A BIG M

Issue 140 | November 2019 | CarDealerMag.co.uk | £5

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CH OUT FOR WARNING: WATYED BY PUNTERS THE TRICKS PLA

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Editorial PRODUCTION EDITOR Dave Brown dave@blackballmedia.co.uk Twitter: @CarDealerDave

HEAD OF DESIGN Graeme Windell

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IT’S an analogy I’d never considered before – but as I listened to the words of Suzuki boss Dale Wyatt while chatting to him on the night of the Car Dealer Power awards, it was one that seemed to make perfect sense. ‘Our business is like a three-legged stool,’ he told me shortly after the manufacturer had picked up the Car of the Year Award for its funky little 4x4, Jimny. ‘We’ve got the new car opportunity, the used car opportunity and the aftersales opportunity. Sometimes you need to lean on one leg a bit more than the others – and that’s what makes a traditional dealer work. ‘I think that’s important – and it’s why our industry is so resilient. Long may it stay that way!’ While I had a few minutes with Dale, I asked him a couple of more general questions about how business was going for Suzuki – a manufacturer that saw new car registrations up more than 25 per cent year-on-year when the SMMT numbers were released for September. ‘The network is in good shape at the moment,’ he told me. ‘We’re going through transition. Like every manufacturer, we’ve got CO2 targets to meet, and we’ve got four big pressures: legislation, product changes to meet that legislation, buyer behaviour, and digitisation. We’ve got to face all that, and it means that our business model is going to go through change in the next couple of years. ‘I’ve been in this industry for a long time, and ever since I can remember, it’s always been on the cusp of change. I’m now the old guy saying it’s on the cusp of change – but I’m sure we’ll come through it well.’ After chatting about all things Suzuki, I buttonholed Mazda boss Jeremy Thomson. The brand came top of the Manufacturer of the Year table for 2019, its dealers happier than any others with the way things were going. Doing my best impression of another Jeremy (Paxman,

Welcome.

obvs), I asked him why he thought his dealers were such big fans of the brand. ‘I think in very turbulent times we’ve endeavoured to have a really candid and honest discussion with our network about things which are not certain,’ he told me. ‘We’ve been very frank with them about what the future might hold. That’s against the background of a world that seems to have gone mad, with division and complexity. I just think candour and honesty are so important. ‘If I’m being really honest, I think we’ve taken the network with us as partners. And I know that sounds like a cliché, but I really think it’s been by us working together – network and manufacturer – that we’ve made some progress in recent years. ‘The dealer network is always going to be a huge part of our business; dealers will always be a part of our future – and perhaps that’s what we’re seeing in the votes by our dealers this year. I’m flattered and honoured that they would vote for us, and somewhat humbled by the award.’ Interesting stuff from two leading figures in the UK automotive industry – both of whom seemed pretty happy after picking up their Car Dealer Power gongs. You can read more about this year’s survey – and a very memorable awards evening at the top of the Spinnaker Tower in Portsmouth – on pages 34-45. There’s lots more to digest in Issue 140 of Car Dealer – and keep an eye out for a very special issue 141 in midNovember. We’re planning a bumper Bangers4Ben and Road Test of the Year edition of your favourite automotive magazine. Happy reading.

Dave Brown Production Editor CarDealerMag.co.uk | 03

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BMW M8 Competition Convertible German manufacturer’s monstrous version of its new flagship 8 Series has been a long time coming – but what does our man Ryan make of it?

A round-up of news from across the nation

ISSUE 140 I NOVEMBER 2019

Dashboard. The Big Story: Crafty punters A frank admission from Subaru Around the UK Used Car Awards 2019 Arnold Clark profits increase Big Mike Feedback Around the World NFDA Brexit support

06 11 14 17 18 21 24 26 29

Features. Car Dealer Power

Data File. The Statistics Fully Loaded Aftermarket Car Dealer Club Auctions Taking Stock Key Notes with Traka

Forecourt. Skoda Kamiq McLaren GT BMW M8 Competition Convertible

49 50 52

Market Insight Suppliers Guide Long-termers James Baggott

34 66 68 72 74 76 77 80 81 84 87 90

Top suppliers at your service in the Car Dealer Clinic

The long-term EV that James is telling everyone about!

Our events... As voted for by you, Car Dealer Power is unique. For full coverage of this year’s survey and awards ceremony, turn to pages 34-45.

The Car Dealer Used Car Awards, sponsored by Black Horse, celebrate the used car industry. Find out more about this year’s event on page 17.

Car Dealer’s automotive trade expo features the Live Stage, workshops and much more. The 2019 event took place at Farnborough – and we’re returning there on April 28, 2020! CarDealerMag.co.uk | 05

Dashboard. SMMT STATISTICS

Car production up for first time in over a year

CAR production increased by 3.3 per cent in August – the first rise in over a year. A total of 92,158 cars were built, the Society of Motor Manufacturers and Traders said in its release of the latest available figures. It was the first increase in 15 months, mainly because several plants brought forward planned summer shutdowns to April to guard against the disruption of the then March 29 Brexit date, the industry body added. Just over 2,900 more cars were produced in August than in the same month last year, but this wasn’t enough to compensate for April’s 56,999-unit loss, resulting in a 17 per cent deficit in the year to date. A total of 866,918 cars were produced in the first eight months of the year – the first time output has dipped below one million units in the period since 2014.

HYUNDAI

Carbon concern fuels EV interest SIXTY per cent of UK adults are considering buying an electric or hybrid vehicle next because of concerns about their own carbon emissions. Research by Hyundai suggests that most UK adults are now concerned about the environment, the future of the planet and their own impact on their surroundings. This has resulted in buyers considering a vehicle’s ecofriendly credentials above acceleration and top speed. 06 | CarDealerMag.co.uk

THE BIG STORY

Revealed: Naughty trade-in tricks pulled on dealers by crafty punters Unsuspecting traders could be landed with bills running into hundreds of pounds thanks to the behaviour of unscrupulous sellers...

n auction specialist has found the tables being turned as car buyers con dealers. G3 Remarketing has turned on its head the traditional public notion of dealers being the dishonest party, finding that when it comes to getting rid of their old car some sellers will stop at nothing to partexchange a vehicle that’s unfit for the road. After talking to its pool of dealers, the Leeds-based vehicle auction specialist compiled a top 10 list of stunts pulled by the public when trading in their old cars – tricks that could cost an unsuspecting trader a LOT of money to put right. 1. Dead battery. It’s very common for a dealer to go out to move a part-exer and find that the battery is, well, terminal, as the previous owner has swapped it out to keep the good one for another car. Replacement estimate: £80. 2. Illegal tyres. When customers know they’re about to change cars, it’s common for them to switch out good tyres with some part-used or fully worn tyres. Most dealers have to factor a new set of rubber into the refurbishment cost. Replacement estimate: £240 (four tyres). 3. Worn brakes. It’s very rare that a dealer will value a partexchange with anything more than a visual inspection. Grinding brakes and worn discs are a common find when it comes to trade-ins. Repair estimate: £200. 4. Where’s the spare? Look under the boot carpet of a part-ex car and quite often you’ll find the spare wheel has gone… on eBay, most likely, along with the inflation kit. Replacement estimate: £80. 5. No fuel. You wouldn’t expect a part-exchange to come with a full tank, but many people take their old car in with

‘We work directly with the trade so we hear a lot of horror stories.’

just fumes left in it. ‘We’ve even seen customers siphoning petrol out into a jerry can,’ said one dealer. Fuel estimate: £20. 6. A load of rubbish. G3 heard from one dealer whose customer had loaded up their old car for a tip run then just dumped it at the dealership. Repair estimate: £10. 7. Mechanical faults. Visual valuations don’t pick up running problems and for many owners the time to trade in their car is when it’s starting to play up – without telling the unsuspecting dealer. ‘Back in the day, a piece of black tape on the dashboard could hide a warning light long enough to do the deal!’ said one of our dealers. Repair estimate: £300 8. Daylight robbery. Some punters are so tight that they’ve been known to remove the headlight bulbs from partexchanges before chopping their car in, leaving the dealer in the dark. Replacement estimate: £20. 9. Back to the wall. It’s a common trick for a customer bringing in a part-exchange to park it close to a wall in the hope that a dealer doesn’t notice obvious body damage – even better if they time it for when the rain starts to pour! Repair estimate: £500. 10. Radio ga-ga. Removing a car’s entertainment system is another fast one pulled by some punters, no doubt to sell it second-hand. Replacement estimate: £150. Anthony Matthews, branch manager at G3 Remarketing, said: ‘We work directly with the trade so we hear a lot of horror stories. That’s why every car we sell comes with a realistic appraisal of its condition and we even offer 30-point mechanical checks on qualifying vehicles to derisk the process as best as we can.’ G3 Remarketing is one of the most innovative and dynamic vehicle remarketing companies in the UK. It disposes of vehicles direct from fleet companies, finance houses and car supermarkets. With more than 60 years’ experience within the automotive industry and a growing database of 15,000 buyers, G3 sources the best vehicles from the best suppliers across the country.

Our hidden message to a rude customer.

Confessions, p85

No doubt described to a dealer as being in immaculate condition and having had one careful owner! (It’s currently SORNed)

Genuine car dealers share their tales Assault and battery: It’s quite common for partexes to come in with duff batteries. I don’t even know where the sellers get the dead ones from so they can keep the one that works. We got the last laugh the other week though – a Ford Focus came in and all the evidence of a battery swap was there to see – a loose battery terminal and a bolt missing from the bracket. Oh, and a very expensive lithium-ion booster pack still connected to the terminals. It’s proving quite handy in the workshop! Andy P, Manchester Tyred and emotional: We run a high-end prestige dealership, but that doesn’t stop some of our customers being penny pinchers. Last week, we took a 2014 Discovery in against a newer model and when we went out we noticed the tyres were mullered. On closer inspection, they had a date stamp of 2006 – eight years before the car was made! Dan W, Bradford Off with its head: A few years ago, I worked for what was a former MG Rover main agent, and a lot of our customers traded in cars that were very poorly indeed. Those MGs were renowned

the hinges had collapsed, so the owner had welded it shut. Martin G, Brighton

for eating their head gaskets, and around half of all the cars we took in boiled up within minutes of being left to run in the workshop. Our chief tech got so used to swapping the gaskets he could do the job in an hour, against a book time of four. Adam B, Lincoln Welded shut door: We took a Nissan Sunny in once that the owner had parked up with the passenger side close to the wall. We only gave a couple of hundred for it as we knew it wasn’t worth the hassle trying to resell. When we moved it round, the passenger door wouldn’t open. On closer inspection, it was so rotten that

Left, right, left: I took a VW camper in part-ex 30-odd years ago, gave the seller £150 for it and he left it outside. When I went to pull it round the back later, I swear that when you turned right it went left and vice versa. It was something to do with the steering box – it had rotted off its mounts or something. We kept it for a laugh so we could challenge traders to drive it round the car park. How the bloke got it to the yard remains a mystery. Geoff L, Surrey No engine: I once worked for a Citroen main dealer that was running a minimum £1,000 PX campaign against any car with an MOT. We got so much rubbish through that we didn’t even bother to inspect them, we just filled out the paperwork and sent the customer away in their new car. I did a deal with a guy on a new ZX against his Ford, which he’d left in the street. It was only when I went out to move the car at the end of the day that I realised he’d part-exed the car but kept the engine… Mike F, Birmingham CarDealerMag.co.uk | 07

The Big Question.

Car culture isn’t what it was for youngsters.

Big Mike, p21

We ask industry leaders for their thoughts on an important talking point...

How do you think the new car market will perform in the next 12 months? Got a question you’d like us to ask the movers and shakers of the automotive industry? Get in touch with us using the details on page three!

If we leave the EU without a deal we will be faced with WTO rules, which will see tariffs of 10 per cent imposed on new cars, and it is likely we will see sterling weaken, which could add further pressure on pricing, a combination of which will have a negative impact on the new car market – I believe we could see double-digit declines. However, you should see a positive impact on both used car values and volumes, which would partly offset the decline in the new car market. If, however, we leave the EU with a deal I can see the new car market bouncing back. Daksh Gupta, CEO, Marshall Motor Holdings plc

Irrespective of the outcome of Brexit, we are expecting to see a further decline in the new car market in 2020 to about 2.3 million if Brexit happens with a deal or, in fact, if there is no Brexit at all. We expect the market to go down to about 2.1 million if Brexit happens with no deal. Within this there will, as always, be winners and losers, with some brands gaining volume and market share to the detriment of others, with factors such as supply constraints and exchange rates having a significant impact. John Tordoff, CEO, JCT600

The 2019 UK new vehicle total industry volume at 2.7 million cars and vans is unsustainable for three reasons. Firstly, it is unprofitable for manufacturers and retailers, given the massive levels of discount required to close monthly targets. Secondly, households are, in general, fully mobile, with a substantial number of vehicles lying idle for long periods of time, so they can afford an extended holiday from new car buying without feeling any ill effects. Thirdly, electrification will drive up purchase prices. The 2020/1 TIV will trend towards a sustainable two million units. Steve Norman, managing director, Vauxhall Motors

Latest projections suggest volumes will dip below 2.3 million units. However, current political and economic uncertainty makes forecasting extremely difficult, if not impossible. A ‘no-deal’ Brexit would see WTO tariffs adding billions of pounds of cost to manufacturers, raising prices and impacting on demand. Further, nearly 90 per cent of UK new cars are imported and any further depreciation of sterling could have an adverse impact. However, if the government gets a deal that prioritises free and frictionless trade, choice and affordability will continue in the long term. Mike Hawes, chief executive, SMMT

If we leave the EU with a deal I can see the new car market bouncing back. Daksh Gupta 08 | CarDealerMag.co.uk

It’s a pretty cloudy crystal ball at the moment, but putting a finger in the wind and basing a view on the mood of the country, I’d say that a Corbyn government is probably the most unsettling scenario for sales, a delayed Brexit the next worst situation, and getting Brexit under way followed by a Johnson election victory the best-case scenario – none of which reflects my personal politics, I should add. The end result would likely be anything from a 15 to five per cent drop in registrations respectively. Jim Holder, editorial director, Haymarket Automotive

Best case the market will be down 10 per cent next year, worst case it’ll be 20 to 25 per cent down. Ten per cent is natural market conditions. If you look at GDP as a benchmark – not just in the UK but say Germany, France, Italy – there’s probably ‘a little recession’ on the way. And if it’s a hard Brexit, for us probably the market is going to be down 20 per cent. It could be 25 per cent as I said, but putting it into context what will that look like? The car/van market’s going to end up at about 2.1 million or just above two million. Karl Howkins, managing director, Citroen UK

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Dashboard.

BMW M8 Competition Convertible on test.

First Drive, p52

AMBITIONS

Subaru admits: We’ve not performed well recently S ubaru must distance itself from its rallying days to fulfil its ambition of becoming the fastest-growing car manufacturer in the UK. That’s according to Torbjörn Lillrud, automotive development director at the IM Group – the firm responsible for importing Subaru and Isuzu models to the UK. Lillrud was speaking at the launch of two new SUVs – the XV e-Boxer and the all-new Forester e-Boxer, which usher electrified models into Subaru’s UK line-up. He said: ‘We have not performed well recently. We almost don’t exist in the UK, but the cars are not the problem as to why we’re underperforming.’ While Subaru has never been a chart-topping brand in the UK, sales have largely remained stagnant – the firm registering 3,242 cars in 2018, with a market share of just 0.1 per cent. But Lillrud is looking to change that and has ambitions for the brand to become the fastest-growing automotive company in the UK – targeting a volume of

by TED WELFORD @TedWelford

10,000 by 2022. A key way this will be achieved is through a ‘new UK brand platform’, which will see the firm trying to distance itself from WRX and rallying models. Lillrud explained: ‘We wanted WRX so much in the UK, and we held on to it for too long. Subaru is not about that kind of thing any more.’ Instead, Subaru’s new traits are safety, reliability and capability – things it looks to achieve through a new line-up of models. This started in 2018 with the new XV and Impreza, and was boosted in 2019 with a revised

Levorg estate and the aforementioned XV e-Boxer and new Forester e-Boxer. The coming years will also see an Impreza e-Boxer debut, along with a new Outback and then an all-new EV, which will be built in collaboration with Toyota. Lillrud also explained his ambition to have Subaru as the numberone firm for employee, dealer and customer satisfaction. The firm is rolling out a number of initiatives in a bid to boost sales. These have included customer previews of the new e-Boxer models, – something Lillrud says has never happened before at Subaru.

More than 40 jobs lost as firm goes into liquidation A CAR superstore in Milton Keynes has gone into voluntary liquidation with 47 people losing their jobs. Saxon Bridge Car Superstore said it was forced to take the action after ‘struggling for the last couple of months and trying to restructure the company’s finances’.

In a statement on its Facebook page, the Mount Farm company, which was established in 2007, blamed the current economic climate, Brexit and a slow period of trading, adding that funders couldn’t continue with their support and withdrew facilities. All the stock was removed within

48 hours and its website taken offline. Paying tribute to the staff, it said: ‘Our management team have been working tirelessly to seek alternative employment which we have achieved for many of them.’ It also said another, unnamed company was taking on the service plans.

NISSAN

New Juke goes on epic tour of UK dealerships

AFTER much anticipation, the next generation of the Nissan Juke is making its first appearances at UK dealerships. The VIP preview evenings will see Nissan’s latest model unveiled in spectacular fashion during the six-week tour of 170 dealerships. Guests attending the events will be the first to see the next-generation Juke up close before first customer deliveries take place later this year. The tour runs until November 15, and those at the preview evenings will experience an immersive product presentation using state-of-the-art holographic technology, which will enable Nissan executives and Juke design director Matthew Weaver to appear in the showroom in hologram form. The previews will also feature a dramatic sound and light show, with Juke product experts on hand to explain the car’s new features in detail. The Juke is the UK’s highest-selling compact crossover of all time.

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Dashboard. DECISION

Dyson pulls plug on £2.5bn EV project

yson has announced that it is cancelling its £2.5bn electric car project. In a statement released on October 10, company founder Sir James Dyson said the decision had been made as a result of the project not being commercially viable. However, Sir James was quick to point out that most of the people losing their jobs as a result would be able to be redeployed elsewhere, since there were ‘sufficient vacancies to absorb most of them into [the] Home business’. The company admitted that some redundancies could be possible though, stating that ‘for those who cannot, or do not wish to, find alternative roles, we will support them fairly and with respect’. Back in 2018, Dyson revealed that a car would be built at a new plant in Singapore, and it was originally believed to have been slated for production in 2021. Designs and patents of the vehicle had been released and the first vehicles are believed to have been tested already. However, the firm said that as it had been ‘through a process to find a serious buyer which has, unfortunately, been unsuccessful’, it took the

You read it here first... IN THE October 2018 edition of Car Dealer, magazine founder James Baggott indicated that Sir James Dyson might have bitten off more than he could chew. ‘Does Sir James really understand the sheer scale of what lies ahead?’ he wrote. ‘Dyson is pretty good at taking everyday gadgets and giving them a twist – just enough to make them that little bit better. But can he do it with an electric car? And when even a company such as trillion-dollar monolith Apple has given up with its plan, can he stay the course?’ The October 10 announcement provided the answer... decision to axe the project. The £2.5bn that would have been spent on creating the new electric car will instead be allocated to other projects within the business. Sir James, right, said that

the company – best known for products such as vacuum cleaners and hairdryers – would instead be focusing its efforts on developing solid-state battery technology destined for the electric car but which could be adapted for use elsewhere. Mike Jones, chairman of automotive profitability specialists ASE Global, described the decision as ‘disappointing, but not wholly surprising’. He added: ‘Making a viable electric vehicle is fraught with difficulty, as we have seen through the travails at Tesla and more recently with the China start-up Nio. Both have struggled competing now that the established carmakers have switched their focus to electric vehicles. ‘They are able to invest billions and sell them at a loss, subsidised by other parts of their businesses. In order to make electric vehicles truly mass-market, and to tackle the climate change challenge of other modes of transport such as trucks, ships and aeroplanes, we need to see a revolution in battery technology. It appears we have to wait for another saviour.’

CarDealerMag.co.uk | 13

Dashboard.

News from around

What’s been hitting the headlines on the home front? Here’s a HAMS HALL

Engine factory hits production milestone

EMPLOYEES at BMW Group’s Hams Hall engine manufacturing plant are celebrating the production of their five millionth unit. The plant, near Birmingham, has a successful history spanning more than 18 years, assembling awardwinning three- and four-cylinder petrol engines that are at the heart of a number of BMW and Mini models. Hams Hall-built engines are also supplied for a growing number of plug-in hybrid vehicles. Plant director Bernd Gress said: ‘We are delighted to be celebrating our five millionth engine.’

BIRMINGHAM

General manager Ken Swindles at the new FordStore

MIDDLESBROUGH

Exciting future in store for larger Ford dealership MOTOR retailer Middlesbrough Ford has announced the completion of a £3m expansion and renovation project, which has seen it transformed into Teesside’s very first cutting-edge Ford Store. The site, part of the Lookers Group, has seen the capacity of its indoor new car display more than double from five to 11 vehicles.

NEWCASTLE

New dealership has a Vauxhall outlet boxes ‘Parisian atmosphere’ clever with support

A NEW DS Store has opened in Birmingham. The dealership – an entirely new building in Tyburn Road – is the largest dedicated DS retail space in the area and is part of the Robins & Day group. It has been designed to have a chic, Parisian atmosphere befitting the French manufacturer and can accommodate a display of five DS cars positioned around a comfortable lounge area. Doug Graham, general manager at the showroom, said the new store was ‘welcoming and stylish’. 14 | CarDealerMag.co.uk

A VAUXHALL dealership in Newcastle upon Tyne is sponsoring boxers and footballers in the area. The Bristol Street Motors dealership has made a donation to Birtley Boxing Club to buy training equipment. In addition, Wreckenton Nou Camp’s under-15s will wear the Bristol Street Motors logo on their new kit for the upcoming season. Liam Fenwick, above centre, general manager at the Scotswood Road showroom, said: ‘It’s fantastic that we are able to support two local sporting organisations.’

The 3,500 sq ft extension has brought the total size of the showroom up to 9,000 sq ft. The changes include more than just the look of the site, with new general manager Ken Swindles joining the team from Lookers’ Renault/Nissan division, having spent the past two years working as general manager at its branch in Chester.

Best-selling new cars in September September 2019

Source: SMMT

Vauxhall Corsa

12,921

Ford Fiesta

11,643

Mercedes-Benz A-Class 9,807 Mini

8,269

Nissan Qashqai

7,987

Ford Focus

7,944

Volkswagen Golf

7,272

Kia Sportage

5,860

Ford Kuga

5,691

BMW 3 Series

5,038

The statistics, p66

DOVER

New jobs are created in Perrys expansion

PERRYS Motor Sales has opened a Ford car and Transit dealership in Dover after a £2m investment. The showroom, just off the A2 and alongside its Vauxhall business in Whitfield, has created more than 35 jobs. The opening forms part of a wider expansion to increase Perrys’ presence in east Kent, following the launch of a new Mazda dealership in Canterbury earlier this year. Denise Millard, executive director at Perrys Motor Sales, said: ‘Our showroom in Dover becomes our eighth Ford dealership in the group.’

Wholesale market continues to lift.

Taking Stock, p77

the UK

First drive:

Skoda Kamiq ‘One of the most practical and spacious cars in its segment’

round-up of stories

Forecourt, p49

LANCASHIRE

BASINGSTOKE

FARNBOROUGH

Temporary home for Land Rover team

Foul play ruled out after blaze drama

Lookers invests in bigger Audi facility

FARNELL Land Rover Nelson is temporarily moving to a nearby site while its existing location has a multi-million-pound redevelopment. The retailer will undergo a complete rebuild to feature a six-car showroom designed in line with the Jaguar Land Rover Arch concept. Staff currently based at the site on Lomeshaye Business Park, Churchill Way, will operate from the former Perrys Citroen dealership in Turner Road for the next 12 months. Above: How the development will look once completed

FIRE broke out at a Hampshire Peugeot dealership on September 29. The blaze occurred at Snows Peugeot Basingstoke, with firefighters called to the scene shortly before 9pm. Ten vehicles were destroyed – including three private ambulances – but nobody was injured. The fire happened outside the building, and as it was after the showroom had closed nobody was on site. Local police were informed but foul play has been ruled out. Picture: Hants Fire & Rescue

‘OEMs need to accept that historic supply and reward models are not fit for purpose. Or they need to admit that they don’t care about the retail model...’ James Litton, p84

LOOKERS has cut the ribbon on a 63,600 sq ft Audi retail site in Farnborough, Hampshire. The new dealership sees the closure of Camberley Audi, with all 120 staff transferring to the site in Templer Avenue. The facility follows significant investment in other parts of Lookers’ Audi portfolio, including a £3m refurbishment at Lookers Guildford Audi and a similar makeover at Basingstoke. Pictured is Michael Wrigley, head of business at Farnborough Audi

CHESTERFIELD

‘Pleased to adopt the SsangYong franchise’

SEEKER in Chesterfield has joined SsangYong’s network. Company owner David Merifield said: ‘We are very pleased to adopt the SsangYong franchise and greatly look forward to growing our business as a result. SsangYong has a great range, and with very competitive pricing and a sevenyear/150,000-mile warranty, we believe it will do extremely well.’ Nick Laird, managing director of SsangYong Motor UK, said: ‘We are delighted that Seeker SsangYong has decided to add our brand to its portfolio.’

NEWRY

Opening of £5m complex is a landmark moment SHELBOURNE Motors has opened its new £5m multifranchise complex in Newry with the creation of 60 jobs. The 50,000 sq ft development features stateof-the-art showrooms for global car manufacturers Renault, Dacia and Kia plus an Autoselect used car supermarket, as well as new car handover bays, a drive-in service centre and lounge-style waiting area. The 60 new jobs fill a number of key roles in

customer service, sales and technical support at the family-owned vehicle retailer’s complex. Sales director Paul Ward said: ‘The opening of our new £5m multi-franchise complex in Newry is a significant landmark for our business. ‘It is the culmination of years of hard work and perseverance to fulfil our ambitions of expanding into the Newry and Mourne area.’ CarDealerMag.co.uk | 15

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Dashboard.

A new era of professionalisation.

Key Notes with Traka, p80

COUNTDOWN IS ON!

PROFITABILITY

Tough August sees average loss of £14,000

Casino action from the 2017 Used Car Awards – we’ll be doing it all again for 2019!

A terrific night is on the cards thanks to backers of the Used Car Awards! T here’s not long to go now until the Car Dealer Magazine Used Car Awards – and we’re delighted to announce details of two great events that will be part of the amazing evening. Guests will first of all be welcomed to The Brewery, in Chiswell Street, London, at a swanky drinks reception at which they able to enjoy an early tipple and mingle with other people before the awards ceremony proper gets under way. After all the trophies have been handed out – and as has been the case in previous years – there will be the chance for a light-hearted flutter at the Used Car Awards casino. No real money changes hands but there will be a prize for the gambler who enjoys the most success at the roulette wheel and card tables. Both elements of the evening will be sponsored by eBay Motors, Motors.co.uk and Gumtree Motors – and all three companies are delighted to be involved in what is sure to be a memorable occasion.

Dermot Kelleher, head of marketing and business intelligence at Motors.co.uk, said: ‘We’re thrilled to be involved in this year’s Used Car Awards and we’re looking forward to playing a key role in making sure guests have a fantastic time. ‘The drinks reception is always such an enjoyable part of the overall evening, where friends and colleagues from the trade get together with people they maybe haven’t seen for some time and get the evening off to a great start. ‘And we know from previous years

that the awards night casino is a huge draw and very popular with dealers once the ceremony’s concluded but the night is still young! ‘We can’t wait to see everyone on the night of the awards – there’s not long to go now.’ The Used Car Awards, sponsored by Black Horse, honour all parts of the all-important used car industry. From the smaller independents to the larger groups, they’re for every dealer in the used car business, although the deadline for entries has now passed. This year, the awards are being held on Monday, November 25, with the fantastic theme of ‘The Goodnight Cabaret’. We’ll be handing out gongs in a variety of categories, and if entrants reach the final shortlist, they will receive an invitation to our glittering ceremony, hosted by TV’s Mr Wheeler Dealer, aka Mike Brewer. Guests will be able to enjoy a terrific meal, free drinks and – if they fancy it – lots of dancing! We’ll see you there.

MOTOR retailers in the UK lost £14,000 on average in August – a significant deterioration from the break-even position achieved during the same month last year, according to latest figures published by ASE Global. However, the profitability experts said that while the overall loss was significant, it was still on a par with the losses historically made during the month, with 2018 representing a WLTPgenerated anomaly. Chairman Mike Jones said: ‘Whilst used car returns have remained under pressure, retailers did manage to significantly reduce their stock investment during August, dropping the average investment by 6.2 per cent. This is traditional in a pre-plate-change month – however, it is pleasing to see, given the level of pressure to register vehicles we are currently seeing.’

INCHCAPE

Fleet business sold for £100m INCHCAPE plc has agreed to sell its Fleet Solutions business to Toyota Fleet Mobility in a £100m deal. It follows recent disposals of its less productive dealerships in the UK, and retail-only disposals in Australia and China. Inchcape has decided to focus on its core distribution operations and says disposals made to date have successfully streamlined the group. CarDealerMag.co.uk | 17

Dashboard.

Accolades for three top Renault dealerships

What’s been getting dealers talking?

Feedback, p24

GROUPE Renault UK has celebrated the strength and depth of its dealer network with special anniversary presentations at three of its longestestablished franchise partners. Senior brand representatives joined the teams at City Motors and SJ Cook

& Sons, both of which are in Bristol, and AKS Yeovil to celebrate the dealerships’ respective 50-, 40- and 25-year anniversaries. Each of the dealerships was presented with an award by Louise O’Sullivan, network operations director

of Groupe Renault UK, to mark their achievement and acknowledge their contribution to the success of the Renault and Dacia brands in the UK. Our main picture shows Louise with the City Motors team, above top at AKS, and above at SJ Cook & Sons.

MILESTONE

FINANCES

Arnold Clark sees pre-tax profit increase to take net assets over £1bn mark A rnold Clark has reported an increase in pre-tax profit of £6.9m to £113.5m – taking its net assets over the £1bn mark. In the retailer’s annual report for 2018, chief executive and group managing director Eddie Hawthorne said: ‘In what has been widely reported as a turbulent period for the motor industry and retail sector, I am pleased to report an excellent full-year performance for the group.’ He hailed the total equity figure of £1,021.7m – up from £938m in 2017 – as ‘a significant milestone for the group and a testament to the vision and hard work of our founder, Sir Arnold Clark’. The Glasgow-based family-run business, which was established in 1954 and now has 200 dealerships

across the UK, saw sales of new cars drop by 2.6 per cent to 68,344 units – hit by the new WLTP regulations, as well as bad weather forcing a number of its showrooms to shut for several days at what it described as ‘a critical time’. However, used car volumes rose by 9.5 per cent to 238,977. It also saw group revenue increase by 7.8 per cent to £4.24bn. During 2018, Arnold Clark opened four new Motorstore branches, took over administration-hit Kilmarnock Citroen, saving the jobs there, acquired the share capital of Crossflags (Motors) Ltd, and added tenanted dealerships in Solihull and Morecambe, while additional land and facilities were also acquired in Aberdeen, Stirling and at Crow Road Volkswagen in Glasgow. Meanwhile, two sites in Kemnay

‘I’d like to take this opportunity to thank our employees for their hard work and dedication.’ Chief executive and group managing director Eddie Hawthorne 18 | CarDealerMag.co.uk

and Perth were offloaded. Looking ahead, Hawthorne said: ‘With continued uncertainty around Brexit, we expect market conditions to continue to be challenging, with the SMMT forecasting a reduction in new car registrations of 2.3 per cent in 2019. ‘As a group, we anticipate that we will feel some impact from this but this will be offset by modest underlying growth in the used car market.’ Paying tribute to the efforts and commitment of staff, he added: ‘On behalf of the board, I’d like to take this opportunity to thank our employees for their hard work and dedication. ‘I have no doubt that 2019 will be a significant year of change given the current political uncertainty. ‘However, the group continues to have the financial strength to sustain it through such a volatile period and also to capitalise on the opportunities that will present themselves.’

History made as first fully electric MG handed over

THE first customer handover of a fully electric MG has taken place. Richard Jackson received the keys to his new ZS EV Exclusive in stylish Dynamic Red at Bushey Heath Garage in Hertfordshire. The milestone handover by sales executive David Pearce also marked the start of customer deliveries for ZS EV across MG’s 100-strong dealer network. The car – which has a WLTP-accredited range of 163 miles – was launched to the media in July and sold 2,000 units in the first 60 days of order books opening. Jonathan O’Donoghue, MD of Bushey Heath Garage, said: ‘We’re glad to be part of history, delivering the first-ever allelectric MG.’

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

Car culture isn’t what it used to be – and that’s a worry for a lot of us

henever I sell a car, I have a little ritual. A longstanding tradition that involves me popping over to The Skinners Arms to raise a toast to this crazy little trade of ours. If it’s a big sale and I consider my day’s work is done, I may extend the ritual and travel home in one of Mr Uber’s Toyota Priuses rather than whatever I’ve just taken in part-ex, which is my usual chariot of choice. But my use of on-demand ride apps (aka taxis) in no way dissipates my love of driving, which is something I’ve been happily doing for the past half-century. Imagine my horror, then, when on my recent celebratory sojourn to mark the sale of a Volvo S40 that had over a grand on the bonnet, I found a group of young lads sitting at one of the other three tables in the snug talking about when they were going to get around to learning to drive. That wasn’t language I understood. As soon as I turned 17, I was out there getting my licence so I could finally drive a car legally, rather than round the block when my parents were out. When I did pass my test, I became the proud custodian of a Ford Anglia 105E – just the thing to get me to and from college and to teach me the finer arts of car maintenance, as well as skills that today’s younger drivers will never master, such as trying to start an engine with no compression, how to drive a knackered Anglia with no clutch, and how to compensate for a horrendously broken wheel bearing by planning a route that only involves right turns. Driving as a youngster is so much easier these days than it was back when I was cruising the mean streets of Acocks Green in a mint-green Anglia with Cortina sports rims and ‘rimbellishers’ on it – yet here were three young men who simply didn’t feel the need to experience the freedom of the open road at the wheel of their own motor. Indeed, as I earwigged their conversation, I established that one of the lads had a girlfriend who was in a car-sharing club and could borrow an electric Volkswagen whenever she wanted without having to worry about the maintenance costs, insurance or buying the thing ‘if ever we actually need a car’, while another said he was going to wait a couple of years before learning because all he could afford was a Citroen C1 with a ‘stupid black box’.

And that, folks, is a bit of a concern. No, not that testosteronefuelled lads are driving around in Citroen C1s rather than Capris with plastic louvres over the rear window (as those of a certain age will no doubt remember), which in itself is a dampening-down of their very masculinity, but the fact that they’re thinking of buying a new car in the first place. Of course, if you’re in the new trade this isn’t strictly a bad thing. You reel them in when they’re still studying their A-levels and if you play the game the way that franchised dealers often do, you hook them into a PCP ‘deal for life’ – their initial £169 a month for a city car evolves into £250 a month for a warm hatch, £300 a month for something a bit bigger and £400 a month for an MPV when they get a bit carried away between the sheets. That keeps the brand happy and the dealer principal in magic beans, so it’s not a bad business model. But for those of us at the more workmanlike end of the car trade, it’s a worry. For years, I’ve welcomed a small-engined hatchback in part-ex all day long, as I know that anything that costs under a grand to buy and about the same to insure will find a home in the hands of a young driver who wants their first set of wheels. Over a year, though, an old banger and an insurance policy cost roughly the same as a PCP on a new city car with a ‘black box’ insurance monitor installed to keep premiums low and mum and dad happy. And that’s hard to ignore if you have one of the increasingly rare offspring who actually wants to drive. I find it even more worrying that those who are learning are getting older and older on average, as although it’ll level out eventually there’ll be a dearth of buyers somewhere along the line as the tides start to balance. And also, a clapped-out old Corsa or Fiesta will be impossible to get rid of, whereas in the past it would have been straight down the local spares shop having hideous tat glued on to it by a proud baseball-hatted ‘yoof’. It’s a challenge for businesses such as mine, but more than that, it’s a societal change that I can’t help but feel very sad about. Car culture was a part of my youth, my son’s youth and a great way of gaining new mates, skills and enthusiasm, but in today’s anodyne world of on-demand transport and electrification, part of the very fabric of society is dying. Time to raise another glass – this time to the glories of the past. Skol!

‘As I earwigged their conversation, I established that one of the lads had a girlfriend who was in a car-sharing club.’

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 | 21

22 | CarDealerMag.co.uk

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your sales process, which gives you greater control of your business. Ecommerce isn’t just for the biggest names in the market or digital players. It’s for everyone. If you have a physical presence, you can make your business omnichannel, or, if you really like, even create one of those fancy blended retail experiences and really “own” commerce. Ready to offer something new? Let’s go.

www.gforces.co.uk 01622 391 904 CarDealerMag.co.uk | 23

Feedback. Comment via email to dave@blackballmedia.co.uk Forum: CarDealerMagazine.co.uk/forum

Buyer has paid but the car’s still here! I HAVE a customer who has paid the full amount for a car but now won’t answer my calls and hasn’t collected the car in the time frame we agreed. I was informed it was going to be picked up last week. Then I was told his wife wasn’t well and now, two weeks later, he won’t answer my calls or texts. What do I do? I’m very stuck for space. I have texted and told him there is now a £10-per-day storage charge but still no reply. iJCS1 Have you tried ringing from a different number? If he still doesn’t pick up, could be a genuine issue. SouthernTrader Too many people don’t think about others. He could be ill in hospital away from his phone. Lying unconscious. And all Mr Dealer here is thinking about is his space and £10 storage? TangoVictor32 You never know with punters. We had a lovely guy a few months ago who paid for a Juke having just sat in it once. He kept making polite excuses for not collecting. He worked close by but lived 10 miles away. So I said, can we drop it off and he said that would be wonderful. I realised then he did not have the confidence to collect it. So I deliver it, get invited in for coffee and get given a bottle of wine and chocolates for my trouble. Then he says, would you mind taking another car around to his garage a couple of streets away. So we agreed that and he opens the garage and drives out a mint-looking old Yaris. I inquired what was he doing with it. He said he had had it from new, 50k, and the nice guy at the garage who has just MOT’d it said he will pay £200 for it. You can imagine what happened, we paid a bit more and got a grand for it. trade vet In my previous role as a bobby, I went to a job once where a woman hadn’t been seen for three days. We kicked the door down and she was

least make contact saying, ‘sorry, we can’t make it’. I’ve held the car for two weeks. He texted last week saying he’d be over tomorrow but still hasn’t turned up. I could have sold the car 10 times over and was offered a higher price than listed but I stuck to my word thinking of the customer. As for ‘Mr Dealer’ – I’m a small dealer who trades from home with limited space. Also, when something goes wrong with a car, Mr Customer chases us down to repair or refund and when we don’t answer, all hell breaks loose. iJCS1

Picture of the month

This month we feature Car Dealer Dave who is seen arriving at the Car Dealer Power Awards night in September. Dave was responsible for driving a bright orange MX-5 to the Spinnaker Tower in Portsmouth – but when he got there, found himself locked out! Luckily he managed to gain attention by scaling some huge gates and it wasn’t long before the car was in place.

I would email him giving him seven days to collect or get in touch. Explain space is at a premium and that you simply need to make arrangements. Politely, mind. Failing that, sell it again for more and when he finally gets in touch just refund him. Rory RSC

dead. Her husband had died three weeks earlier. They had been married for 50 years and she ended up having a heart attack. So be a little considerate, folks! Send a letter next week. You might want to send it first-class. Word it nicely. TangoVictor32

Dilemmas over diesel

I have a few diesels which are sticking around but I have petrols as well not selling. Are diesels still worth buying? Pip

A few years ago, I had a lad buy a motorbike off me. He came and looked and paid for it but I never saw him again. I went to the police after six weeks and explained what had happened. They said it should go to the police station for a period of time then I could reclaim it. However, they didn’t have room so I kept it for a while then sold it again. Never did hear from him. David Horgan

Diesel is still the best fuel for 80 per cent of people BUT because of all the bad press and scaremongering they just don’t dare buy them. Because of the mileages that they cover they can’t use a petrol either so they just stay put and don’t change their car unless they MUST. For small city cars, diesel is becoming a no for me, but for large highish-spec 3.0-litre-plus prestige models, I’d stock diesel with no hesitation whatsoever. Nick M.K.

When I’m stuck for space and have to pay our local storage car yard a fee for parking there I don’t see why I should be out of pocket. If I agree to collect a car we do so on time or at

Still selling okay up here in Scotland to the right buyer. Also, a lot of traders still buying at auction so must be turning them over, I guess. Casper

Top Car Dealer Power tweets Good news from our colleagues at @AutoglymPro! The Professional range of Autoglym products have won an award at the #CDPower awards – Cleaning Product Of The Year. Well done, guys. Autoglym @autoglym Well done guys, 67 Degrees winner of CD Power, Website Provider for Independent Dealers #CDPower Marc Thornborough @MarcThornboroug Delighted to have won the #CDPower Provenance Check Provider of the Year Award from @CarDealerMag. Our 9th year in a row. A big thank

you to all our loyal and supportive customers. We could not do this without you! #9inarow Chris Wright @ChrisW_cap_hpi Last night #67Degrees were winners in the ‘Website Provider for Independent Dealers’ category at the prestigious #CDPower awards. A second victory in this category sees us retain last year’s title. 67 Degrees @67degreesuk Congratulations to all our winners and those who were highly commended at this year’s #CDPower! See you next year! Car Dealer Mag @CarDealerMag

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

DUBAI

GFORCES is celebrating five years of successful market growth with a move to Dubai’s newly opened Innovation Hub in Internet City. The 1.8 million square foot business park features a vibrant collective of innovative companies focused on technology, new media, smart education and the sciences. Since opening the Dubai office, GForces has delivered the region’s first automotive ecommerce platforms and strengthened its digital foothold there.

AMERICA

A NEW Honda dealership has opened for business in Tennessee. The showroom in Gallatin, about 30 miles northeast of Nashville, boasts nearly 100 per cent local staff and has created more than 60 new jobs. It is said to be proud of its association with the Middle Tennessee Honda Dealers’ Association and is determined to focus on transparency and speed in the sales process. Trucks as well as cars will be sold there.

AFRICA

MUREZA Auto Company, an African car brand registered in Zimbabwe and South Africa, is planning to assemble and distribute Iranian-developed vehicles in the region. The firm will embark on a joint venture with the Iranian Saipa Group for platform-sharing and the supply of components, but the eventual aim is to design and make vehicles in Africa for African drivers.

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INDIA

CHINA THE competition for car sales in China is heating up, with more than one in four potential buyers ruling out a brand before even visiting its dealers, according to a survey by JD Power and reported by China Daily. The proportion of customers who remove a brand from their wish list without visiting its dealerships has increased to 26 per cent from 10 per cent in 2017, according to the China Sales Satisfaction Index Study. The results are based on a survey of 23,197 customers who bought cars from July 2018 to May 2019 across 75 Chinese cities.

INDIA’S vehicle market – until recently projected to become the world’s third largest – is facing its worst crisis since records began more than two decades ago, reported the Financial Times. Car sales in August fell 41 per cent from a year earlier. Automotive analyst Puneet Gupta said: ‘We have never seen a crisis as painful as this one.’

CarDealerMag.co.uk | 27

Brexit Dealer Support Brexit dealer guidance toolkit Trade and tariffs, customs and deliveries, finance

Brexit NFDA helpdesk brexit@rmif.co.uk

Brexit online portal

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Brexit no-deal guidance dealer forum Belfast, 30 October 2019 National Franchised Dealers Association (NFDA) brexit@rmif.co.uk 020 7307 3404

28 | CarDealerMag.co.uk

NFDA. BREXIT

We’re taking steps to help – and to safeguard our stability There are about 4,500 automotive franchised retail sites in the UK – and the NFDA is urging them to take very seriously the idea that a ‘no-deal’ Brexit is fast approaching

he United Kingdom is only a few days away from its planned departure from the European Union. The legal and political reality is that the new government under prime minister Boris Johnson will take the UK out of the EU on October 31, with or without a deal. The current climate of uncertainty has been affecting businesses and consumers for several months. Whilst a ‘no-deal’ Brexit has always been NFDA’s least favourite outcome of the Brexit negotiations, we have repeatedly encouraged dealers to plan for any scenario resulting from Brexit. There are about 4,500 automotive franchised retail sites in the UK whom we now urge to take very seriously the idea that a ‘no-deal’ Brexit is fast approaching. Businesses must take the necessary steps to mitigate the potential threats associated with this outcome. If the UK leaves without a deal, it will immediately shift to trading under the World Trade Organisation framework. Trading on these terms is likely to involve tariffs on imports and

‘We will continue to work closely with our franchised dealer members to support them after the UK’s departure from the European Union. Sue Robinson

by Sue Robinson, director of the National Franchised Dealers Association (NFDA), which represents franchised car and commercial vehicle retailers in the UK exports, an increased regulatory burden for businesses and delays to the delivery of vehicle stock and parts. To support dealers during this phase of transition, we have launched a dedicated NFDA Brexit helpdesk, Brexit dealer-focused guidance plus a Brexit online portal, and we will hold a Brexit no-deal dealer guidance forum in Belfast on Wednesday, October 30. The guidance documents include a list of key questions, compiled by research body ICDP, for franchised dealers to ask of their manufacturer partners, suppliers and themselves. These questions will support franchised dealers in assessing the risks to their business by seeking assurance and guidance from their manufacturers. Additionally, NFDA’s retained solicitors have prepared guidance documents on specific issues such as trade and tariffs, customs and deliveries and finance. The retail automotive industry provides employment for about 555,000 people, and with an annual turnover of £200 billion it is vital that the stability of our sector is safeguarded. Over the past two years, NFDA has been running a Parliamentary Engagement Programme to raise awareness of the key contributions our industry makes to the local and national

economy. Under the programme, we invite MPs and Parliamentarians to visit the dealership in their constituency to gain a better insight into our industry. We will continue to engage with relevant members of the Parliament to ensure that the franchised dealers’ voice is heard. In December, our ‘Prepare for 2020’ round of regional meetings will be taking place across the country. The potential implications of Brexit as well as the likely post-Brexit regulatory environment, with a focus on any changes affecting dealers, will be at the top of our agenda. We advise our members to attend this extremely important series of meetings. Additionally, to continue to best represent our franchised retailer members’ interests not only in the UK but also at a European level, we have joined forces with a number of European counterparts to form the Alliance of European Car Dealers and Repairers (AECDR). AECDR has already contributed to the European Commission’s consultation aimed at evaluating the Vertical Block Exemption Regulation and will be lobbying for a new Vertical Block Exemption Regulation including supplementary guidelines. Going forward, AECDR will be engaging with MEPs, EC officials and other relevant stakeholders. The National Franchised Dealers Association (NFDA) is the voice of automotive retailers and we will continue to work closely with our franchised dealer members to support them after the UK’s departure from the European Union. CarDealerMag.co.uk | 29

Finance. TIE-UP

BNP Paribas divisions join forces over stock funding T wo divisions of the BNP Paribas Group in the UK – BNP Paribas Personal Finance and car leasing specialist Arval – are joining forces to launch a new stock financing service for UK motor dealers. Dealerships can now buy and finance their used stock in one transaction directly through Arval’s online sales platform MotorTrade. The tie-up lets dealers spread 100 per cent of the purchase cost (inclusive of fees) over flexible, phased repayments of up to 120 days. The one-stop solution also makes it easier for dealerships to increase their stock levels, manage their cashflow, and plan their expenditure levels, said the group. It is all backed by the BNP Paribas Group, with funding applied to the account automatically for vehicles bought through the stock funding option. All information relating to the purchase, such as invoices, statements and payment schedules, is available to view on any connected device through an online account. Arval’s MotorTrade platform offers

dealerships direct online access to around 45,000 ex-lease vehicles each year from a range of manufacturers with competitive buyers’ fees and no middlemen. Andrew Brameld, managing director of BNP Paribas Personal Finance’s motor finance business in the UK, said: ‘We’re delighted to be partnering with Arval to deliver this industryleading stock finance solution.

We’re sure dealers will find this to be a useful tool as they manage and finance their stock levels.’ Gary Burns, remarketing director at Arval UK, added: ‘This partnership further enhances our MotorTrade proposition, making it even easier for buyers to access the stock they need, while giving them the confidence they have a finance plan in place that they know they can trust.’

EXPANSION

Santander’s digital loan bid process goes national SANTANDER Consumer Finance is expanding its online loan application platform across the UK. The end-to-end digital process for dealers further strengthens its commitment to market growth. The national launch of Apply Online, which offers e-sign capability, means customers can calculate the finance they need, receive immediate approvals and sign documentation at home or in showrooms, ensuring that dealers remain in control.

30 | CarDealerMag.co.uk

Delivery of the process has taken nine months since the company launched its online calculator, which has seen more than 4.1 million quotes generated by customers and 51 dealers signing up for it. Apply Online, which was successfully tested over the past month, is now available to all dealers using the calculator. Commercial director Stewart Grant said: ‘The financial investment and the time spent by our team

in developing and delivering the digital transformation emphasises how committed we are to supporting our dealer network in maximising sales and profitability within the growing digital market.’ It builds on the success of SCF’s partnership with Volvo Car UK, which was launched in April. The online loan application platform is integrated into dealers’ websites and installation takes minutes for dealers who already have the calculator.

RECOGNITION

Startline named as a company that inspires

STARTLINE Motor Finance has been named in the London Stock Exchange Group’s ‘1,000 British Companies To Inspire’ report for 2019. The document, which recognises the fastestgrowing businesses across the UK and is now in its sixth year, is produced with the help of a crossparty group of MPs including Theresa May and Nicola Sturgeon. It’s the second time that Startline’s success has been independently recognised this year. In May, Inc. – an American magazine and news website founded in 1979 – included the company in its Top 10 Fastest-Growing Private Companies in Europe report, noting: ‘Under CEO Paul Burgess, Startline, a Glasgow-based auto lender . . . has ushered in impressive growth. In 2018 alone, it doubled its staff. ‘Its business volumes, by year-end, also ticked up by more than 20 per cent.’ Burgess, pictured, said: ‘We haven’t sought out the recognition that organisations like the LSE and Inc. provide but it is gratifying to be named, nonetheless.’

IN ASSOCIATION WITH

Time is money BEN GARSIDE

A monthly look at the world of automotive finance and marketing

Opportunity knocks whenever people want more than what’s being offered

eople always seem to want more nowadays, and in car sales and motor finance it’s no different. I hold my hands up, as I’m also a consumer who falls into this arena. I am one of those who loves new gadgets and wants something to be better than it already is, always! But why? Well, when we look at history, humans have done great things for as long as we can go back. Take hunting, creating fire and building homes – we know how to survive and we always know how to evolve. In the 1700s, Benjamin Franklin wanted more and sold most of his possessions to fund his investigations into electricity. Then, in the early 1800s, Humphry Davy invented the first electric light, but it took another 70odd years before Thomas Edison developed a practical incandescent lamp, pictured, which he then patented. All of them wanted more than what the people of that time had. Look at wanting to be like a bird and fly. We knew it’d be hard but we wanted more; we wanted to fly. The Montgolfier brothers started the process and built a hot-air balloon in the late-1700s. Over the next century, many inventors tried to create powered flight. However, it wasn’t until 1903 that the first sustained, controlled and powered flight of an aircraft was achieved, courtesy of the Wright brothers. Fast-forward to today and we’re trying to build a hypersonic ‘space plane’ promising a four-hour London-to-Sydney flight by the 2030s. We just always want to have or be better. Then we think about cars, and we all know that they evolved

from us being on horseback to being in an animal-drawn cart. The next stage was Richard Trevithick’s 1801 road locomotive – the ‘Puffing Devil’. However it’s not much of a car when you consider those on the road today. It wasn’t until the 1880s that Karl Benz patented and put into production the internal combustion engine that helped lead us to where we are today. Over the next 100 years, there were a lot of innovations and improvements, such as canvas roofs and a fourth wheel. By the early-1900s, we had all-steel cars, we had the Model Ford T – a four-seater that was once named the most influential car at the international Car of the Century awards. These were still primitive though when compared with what we have today. The motor industry has continued to be at the forefront of technological innovation, while the consumers buying our cars have searched for better. Whether that be a newer car, a bigger car, a more economical car, a safer car or a quicker car, they just want more. Again, I’ve had my car less than a year and I’m already looking at the next model up, with more power and better handling. I may not be in the buying cycle but my brain has already gone into ‘what’s next?’ mode. While that’s all productorientated, consumers also want a better service, a quicker service, a cheaper service, and if you look inwards, you also probably want more when you’re buying! So, when a customer makes a complaint or asks for a better deal, look at them as an opportunity to improve… and if it’s something that First Response can improve on, please let us know.

‘Over the next 100 years, there were a lot of innovations and improvements, such as canvas roofs and a fourth wheel.’

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 | 31

Dealfinder.

Finance. YOUR ESSENTIAL GUIDE TO LUXURY SUVs

Audi Q7

BMW X5

THE Q7 has been an important car for Audi over the years. It has recently been overhauled to fit in with other range-topping Audis, with the addition of a new twin touchscreen set-up and mildhybrid technology. We’ve selected an entry-level model equipped with a 228bhp 3.0-litre diesel engine and in sporty S line trim. Despite this facelift only just arriving in showrooms, Audi is already offering an incredible deposit contribution of £5,000, to which the customer adds £7,500. During the three-year term, the customer will make 35 monthly payments of £719.45, which brings their total to £32,680.75. If they choose to buy their Q7, a final payment of £28,932.25 can be made, including a £10 fee, which brings the overall amount payable to £61,613 – £2,153 more than the £59,460 cash price.

THE latest X5 reached showrooms towards the end of 2018 boasting even vaster proportions, a new infotainment system and improved tech all round. We’ve chosen the car in popular M Sport trim with the xDrive30d engine – a punchy 261bhp 3.0-litre diesel unit. Standard equipment includes 20-inch alloy wheels. BMW is offering a deposit contribution of £3,784.42, to which the customer adds £8,200. This is followed by 35 monthly instalments of £722.60, which means the customer will have paid £33,491 by the end of the three-year deal. Should they choose to own their X5, a payment of £29,546.90 can be made – making a final sum of £63,037.90. Even with BMW’s generous finance contribution, the 4.9 per cent APR means this is £1,897.90 more than the £61,140 cash price.

BLUESTONE CREDIT MANAGEMENT

Yellowhammer ‘has notable implications for dealer finance’ T he UK Treasury’s Yellowhammer contingency plan for a no-deal Brexit has notable implications for the motor finance sector because the economic disruption could inevitably affect consumer confidence. That’s the stark message from Bluestone Credit Management, which specialises in providing credit management support to the motor finance community. Operation Yellowhammer – the Treasury’s paper on cross-government civil contingency planning – outlines a series of worstcase socio-economic outcomes. But there will still inevitably be some impact while the UK adapts to life after EU membership, regardless of the final exit path, said Bluestone managing director Mark Baird, pictured.

32 | CarDealerMag.co.uk

by DAVE BROWN @CarDealerDave

‘In the immediate future, a no-deal exit from Europe has multiple consequences for motor retailing and financing,’ he commented. ‘Tariffs could see car prices rise, while consumer confidence is likely to be dented with food and utility prices expected to rise, along with the risk of business failure. These impacts bring with them an inevitable risk of a spike in arrears. ‘As well as the short-term issues such a spike would create, it could also have consequences for customer retention, with an arrears history risking damage to customers’ credit status. ‘Helping customers to manage their finance

effectively through the disruption period anticipated by the government will be crucial.’ In the short term, Bluestone expects some tightening in the availability of credit. However, looking further ahead, Baird added: ‘We are seeing lenders looking to increase their capabilities to manage early arrears and especially to address what we have termed “mid-term disrupted” customers. ‘Without a considered strategy to help these people, short-term distress could have a long-term consequence for what has been a loyal, goodquality cohort of car finance customers.’

IN ASSOCIATION WITH

DID YOU KNOW THAT YOU CAN PROPOSE TO US

Volvo XC90 WE’VE selected the new B5 engine along with stylish R-Design trim – which acts as the sporty-looking grade in the line-up, similar to BMW’s M Sport and Audi’s S line. The XC90 comes laden with kit – particularly safety kit, which includes a host of measures to eliminate accidents. Volvo’s £1,250 deposit contribution is less than the other two here but still a welcome sum for customers to add to their £7,200 deposit. This is followed by 36 monthly payments of £782.13 – bringing the total payable at the end of the three years to £35,356.68. A final payment of £25,447.50 can then be made if they decide to buy their XC90, which means the total sum payable by the customer is £60,804.18. Even with the deposit contribution, though, the 4.9 per cent APR means that the XC90 will cost £4,219.18 more to finance than its £56,585 cash price.

APPOINTMENT

REPORT

Jimmy joins Specialist Motor Finance as national sales director

Most credit-savvy young adults in UK are revealed

SPECIALIST Motor Finance has strengthened its management team with the appointment of a new national sales director. Jimmy McGuire brings more than 20 years of top-level experience within the motor trade and financing industry to the Chester-based company. His principal role will be to provide support for existing SMF brokers and help them maximise their earnings from the company’s lending products. He will also advise other brokerage firms on how they can assist credit-challenged private car buyers more effectively. Before joining SMF, McGuire was national sales manager for Advantage Finance, which provides motor dealers with an alternative lending source. SMF currently employs around 75 people, and recently announced that it had reduced online lending decisions to under 10 seconds while widening the volume of approvals.

A REPORT from price comparison site Moneysupermarket.com has revealed that 18- to 24-yearolds in Leicester are the UK’s young adults who are in the best financial position in terms of credit situation, income and cost of living. Young people in the northeast of England have the lowest credit score on average. The report, based on anonymised data from 200,000 people who have checked their credit score on the site’s Credit Monitor app and website, reveals that the average age of Brits first exploring their credit health is 39. However, with credit history available from the age of 18 and only 12 per cent of credit checks on Moneysupermarket made by 18- to 24-year-olds, it says that young people could be putting their credit scores at risk by leaving it so long before checking.

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PROCESS THAT IS: QUICK EASY EFFICIENT

CarDealerMag.co.uk | 33

Survey.

“

Car Dealer Power started in 2010, in the very infancy of Car Dealer Magazine, with awards that were designed to celebrate the businesses and car manufacturers that treat their dealers as true partners. 34 | CarDealerMag.co.uk

hey’re often described as the Oscars of the automotive industry – and with very good reason. The Car Dealer Power awards honour the best of the best when it comes to suppliers to the motor trade – and also recognise the top manufacturers to work with. The 10th annual awards ceremony took place at Portsmouth’s iconic Spinnaker Tower on September 26 with a black-tie dinner. It followed months of voting by the nation’s car dealers, who filled out a survey form either online or in a printed copy of the magazine, letting us know their thoughts anonymously. Who would be the best warranty supplier? Which auction house would they rate as their favourite? Which manufacturers would be getting the bouquets? (And which ones the brickbats?) As our guests filed into the tower’s reception area and were whisked up to the viewing decks in a high-speed lift travelling at four metres a second, it was almost time to find out. And as the drinks flowed, a delicious à la carte dinner was

11 PAGES OF enjoyed by all those present and the awards were handed out in a truly unforgettable evening high above Portsmouth Harbour. Car Dealer founder and CEO James Baggott said: ‘Car Dealer Power started way back in 2010, in the very infancy of Car Dealer Magazine, with awards that were designed to celebrate the businesses and car manufacturers that treat their dealers as true partners. ‘We knew there were many firms out there that worked with dealerships to help them improve their businesses and we wanted to give dealers the chance to tell us who these good guys were. ‘And that’s what makes these awards unique – they’re the only ones in the industry that are voted for entirely by those in the motor trade themselves. It’s astonishing to see how, nine years on, they’ve become regarded as some of the most coveted honours in the entire industry.’

PICTURES: MATT RICHARDSON

Car Cleaning Product of the Year Winner: Autoglym Highly commended: Autosmart Highly commended: CarPlan Car Dealer Magazine founder James Baggott, right, presents the trophy to Mark Docherty of Autoglym

THE first award to be presented, and in a very important category indeed, was Car Cleaning Product of the Year. Awards host James Baggott pointed out that cleaning products are crucial to dealerships of all shapes and sizes. After all, no customer would want to buy a dirty car, so every vehicle on display needs to be spick and span at all times. Our two highly commended winners both have an excellent reputation in the industry and innovate constantly. Guests were asked to put their hands together for Autosmart and CarPlan. As with all categories, though, our top prize went to the company that was the dealers’ favourite this year. One told us its range was ‘superb’ while another said ‘everything is easy to use and the effect is long-lasting’. Well done to Autoglym!

Warranty Provider of the Year Winner: The WMS Group Highly commended: Autoguard Warranties Highly commended: AutoProtect

COVERAGE In our 11 pages of coverage from this year’s awards ceremony, we’ll be looking at suppliers first, recognising the best in the business – the ones that offer fantastic products and unparalleled service to the UK’s dealers. Then we’ll focus on the manufacturers you represent. How do they compare when it comes to finance offers, ROI, brand awareness and the actual cars they make that you then have to sell? Car Dealer Power is genuinely special. The winners are part of an elite club that is doing the job properly as recognised by dealers. The team who publish the magazine have no influence or say in who wins the awards – dealers do that. We’ve got the easy job, and that’s handing over the trophies and certificates. Well done to all our winners, many thanks to all our readers who voted, and we’ll be doing it all over again in 2020!

The scene as dusk started to fall at the Spinnaker Tower in Portsmouth, shortly before this year’s Car Dealer Power awards ceremony. It was a truly memorable occasion – and watch this space, as we’ll be doing it all over again in 2020!

Ian Tallent, left, and Keron Hurlstone from The WMS Group collect the company’s award from Blackball Media’s head of content, Jack Evans WITH ever-increasing pressure on margins, warranties are incredibly useful to dealers in terms of helping them boost their bottom line and providing value and peace of mind for their customers. The leading players have to be at the top of their game to succeed in Car Dealer Power. Our highly commended winners were Autoguard Warranties and AutoProtect – so many congratulations to them. Our survey respondents, however, were in no doubt about who the winner should be. It’s a company that offers a warranty that’s designed to help dealers improve their customer retention, workshop activity and, ultimately, profitability. It was a big well done – for an incredible fifth consecutive year – to The WMS Group! CarDealerMag.co.uk | 35

Survey. Video Provider of the Year

Recruitment Agency of the Year

Winner: CitNOW

Winner: Perfect Placement

Highly commended: AutosOnShow

Highly commended: Gibson Automotive Recruitment

Highly commended: GardX

Highly commended: Progress Recruitment Solutions

James Baggott, right, presents the trophy to Callum Wood of CItNOW. The company was voted Video Provider of the Year by the readers of Car Dealer Magazine

VIDEO is something we’re passionate about here at Car Dealer Magazine. It’s a hugely important part of what we do, so we all take a great interest in this category. In preparing to hand over the trophy, James Baggott said: ‘More and more customers expect video these days when interacting with dealerships – it’s far more effective than photography when it comes to attracting a customer and sealing that all-important deal. ‘Well done first of all to our highly commended winners, both of whom should be very proud of their achievements. Many congratulations to AutosOnShow and GardX!’ He then moved on to reveal the identity of our overall winner – and the top prize went to CitNOW for the fourth consecutive year. The company’s app-based smart video and image solutions improve the customer’s digital journey by creating a transparent and easy carbuying experience. It’s smart video for smarter retailing. In response, CitNOW chief executive Alistair Horsburgh said: ‘Winning this award once is a great achievement, but to win it four times in a row highlights the rapid and effective development at the heart of CitNOW’s continued success. ‘It’s an honour to win any award, but to be highlighted as the best in the industry by actual dealers means the world – we’re constantly innovating to support our customers, and it’s great to see that service-led approach resonate among retailers.’

GardX was highly commended in the video provider category. Pictured are Jonathan Hermans, left, and Paul Jordan with James Baggott

36 | CarDealerMag.co.uk

Jimi Matthews, right, director of supply chain recruitment at Perfect Placement, collects the firm’s award from Jack Evans A SUCCESSFUL recruitment agency can prove to be an invaluable partner to a car dealership. Our winners know this and received lots of positive feedback in this year’s Car Dealer Power survey. First of all it was a big well done to our two highly commended winners, Gibson Automotive Recruitment and Progress Recruitment Solutions. They received lots of positive comments in our survey and should be very proud of their achievements. But they were pipped to the post by Perfect Placement – with the Norwich-based company taking home the spoils for an amazing seventh consecutive year! One dealer said: ‘I’ve found some superb salespeople using this firm’ and ‘they’re great at helping to solve staffing problems’.

Trade Insurance Provider of the Year Winner: Unicom Highly commended: Aston Lark Highly commended: Plan Insurance Brokers Lee Middleton from Unicom with James Baggott

TRADE insurance is something a business would be unable to operate without. But who to choose? Well, the readers of Car Dealer were very generous with their votes and made it quite clear who their favourite partners are in this area. Our two highly commended winners were Aston Lark and Plan Insurance Brokers. But despite all of our nominees getting an incredible number of votes, our winner stood head and shoulders above the rest, with its team of motor trade experts winning plenty of praise for really knowing their stuff. Our Trade Insurance Provider of the Year for 2019 was revealed to be Unicom. Congratulations to all three companies!

Dealer Management System of the Year

Used Car Valuations Provider of the Year

Winner: Click Dealer

Winner: Auto Trader

Highly commended: Dealerweb

Highly commended: Cap HPI

Highly commended: Dragon2000

Highly commended: Glass’s Jamie Baker, from Click Dealer, right, with Jack Evans, head of content at Blackball Media

DEALERSHIPS large and small have a multitude of factors to worry about and keep track of at all times. Our three finalists in the Dealer Management System of the Year category all make a vital difference to the day-to-day running of businesses up and down the country. The two highly commended award winners were revealed to be Dealerweb and Dragon2000. Many congratulations! Then it was time to celebrate the success of our overall winner – Click Dealer. This is a company that really makes its presence felt thanks to its helpful and hard-working staff, said our readers. Its DMS includes stock management, automated feeds to leading vehicle portals, valuations & projections, and control over pricing.

Provenance Check Provider of the Year Winner: Cap HPI Highly commended: Experian Highly commended: MotorCheck Wendy Swaine, head of retail accounts at Cap HPI, with James Baggott

PROVENANCE checking is, of course, an area of a car dealership that no-one can afford to ignore. Dealers need to be confident that any vehicle they take in part-exchange hasn’t been stolen, isn’t subject to outstanding finance – and has definitely never been written off. Car Dealer founder James Baggott said overall winner Cap HPI was a true provenance expert, delivering the data to manage risk, maintain reputation and, importantly, increase profit. Not only was it responsible for producing Britain’s first vehicle provenance check in 1938, it has been reassuring businesses and organisations about the vehicles they purchase for more than 80 years. Many congratulations indeed! Highly commended were Experian and MotorCheck. Well done all.

Jack Evans presents the trophy to David Hawksworth of Auto Trader, Used Car Valuations Provider of the Year

ONLY by knowing a car’s true value can a dealer make the most important decisions in their business – how much to buy for and how much to sell at. In this category, there were some well-known names – which came as no surprise – and our two highly commended winners are not only well known but well respected too. Guests were first of all asked to put their hands together for Cap HPI and Glass’s – our two highly commended winners. Well done indeed. But our winner, Auto Trader, received more than twice the votes of its nearest competitor. It combines data from the half-million car adverts on its site, more than 3,500 dealer websites, major car auctions and the exfleet and lease world. A delighted Karolina Edwards-Smajda, commercial products director at Auto Trader, said after the award had been presented: ‘We work hard to develop tools and services that provide our customers with the genuine insight they need to succeed in today’s fast-moving market. ‘So we’re all thrilled that our valuations were recognised at the Car Dealer Power awards. ‘The fact that the awards were voted for by retailers is particularly humbling. Congratulations to all of this year’s winners.’

Jill Cordon of Cap HPI, which was highly commended in this category, with Car Dealer founder James Baggott

CarDealerMag.co.uk | 37

Survey. Website Provider For Franchised Dealers

Website Provider for Independent Dealers

Winner: GForces

Winner: 67 Degrees

Highly commended: Autoweb Design

Highly commended: Car Dealer 5

Highly commended: Click Dealer

Highly commended: Click Dealer Andrew McNulty, regional account director at GForces, accepts the company’s trophy from Car Dealer’s Jack Evans

THIS was a hotly contested category, as it is every year, but our top three really stood out from the rest with outstanding comments and scores. The best websites these days include everything from online car sales and video to live chat and service booking ability, and guests were first of all asked to put their hands together for our two highly commended winners, Autoweb Design and Click Dealer. But our overall winner for 2019 was GForces, which operates a system designed to give dealers freedom and flexibility. A highly converting, next-generation platform, it has been built to serve the automotive industry and performs that task very well indeed. Congratulations!

Paint Protection Provider of the Year Winner: GardX Highly commended: Diamondbrite Highly commended: Supagard Amanda Massey from GardX with Car Dealer founder and CEO James Baggott

WE say it every year – but this category is always extremely competitive. Paint protection is a win-win for dealers and customers alike, providing a boost to balance sheets and adding value for the customer. Our two highly commended winners in this category were Diamondbrite and Supagard. And our winner was GardX, a firm that works with high-profile dealer groups to provide products that voters have given glowing reviews of. GardX does far more than just provide paint and interior protection products, although that’s probably what it’s best known for. One dealer told us: ‘I’ve been working with GardX for years and they’re the best in the business,’ while another said: ‘My customers love their products.’ Praise indeed! 38 | CarDealerMag.co.uk

James Baggott hands the trophy to Susie Ancell of 67 Degrees FOR non-franchised dealers, having the right website is key. Why? Well, in the competitive car dealer world, the ability to stand out from your rivals is crucial. What’s more, even the smallest businesses can compete with the big boys online… the internet really is a level playing field. Our winner this year received high praise indeed. One survey respondent said they enjoyed ‘great service from friendly people’ and another commented that ‘our requests and feedback were acted on immediately’. Yes, our website provider for independent dealers for 2019 was 67 Degrees – a small company that really does focus on high-quality customer service. The team works closely with dealers to deliver results – and those dealers clearly appreciate it! Very well done too to our two highly commended winners, Car Dealer 5 and Click Dealer.

Click Dealer was highly commended in both ‘website provider’ categories – here’s Jamie Baker from the company with our very own Andy Entwistle – and a couple of certificates to be cherished!

Auction House of the Year

Trade-to-Trade Remarketer of the Year

Winner: Manheim

Winner: Dealer Auction

Highly commended: Aston Barclay

Highly commended: Cartotrade.com

Highly commended: BCA

Highly commended: Sytner Web

Head of content at Blackball Media Jack Evans presents the trophy for Auction House of the Year to Martin Hamill of Manheim INTRODUCING the Auction House of the Year category, awards co-host Jack Evans pointed out that our three finalists have all worked extremely hard to move with the times in recent years. They offer innovative online solutions to dealers plus well-equipped and welcoming auction halls in strategic locations around the UK. Our highly commended winners in this category, as voted for by the readers of Car Dealer Magazine, were revealed to be Aston Barclay and BCA. And then it was time to find out who the winner was. As Jack said, it’s a company that constantly demonstrates that it’s on the dealer’s side, keeping up to date with technology and always developing its offering to stay ahead of the pack. It was a big well done to the Auction House of the Year for 2019 – Manheim!

BCA was highly commended in this all-important category. James Baggott presents the certificate to Kim Watts and Robin Wilde from the company

Kieran TeeBoon, managing director of Dealer Auction, picks up the company’s trophy from James Baggott FOR a dealer, finding suitable stock for the forecourt is a constant challenge – so choosing the right trade-to-trade remarketing partner is a critically important decision. Our two highly commended winners in this category are stalwarts of the automotive industry and received lots of complimentary comments in Car Dealer Power. They really are delivering for thousands of dealers up and down the country, so guests were asked to put their hands together for Cartotrade.com and Sytner Web. Our winner in this category was Dealer Auction – a company that operates a clever online auction that offers trade cars direct from franchised main dealers nationwide. All registered users are vetted to ensure the highest standards of professionalism are maintained. What’s more, it has now won the award for an amazing sixth time! Many congratulations to all winners in this category.

Motor Factor of the Year Winner: Motor Parts Direct Highly commended: Dingbro Highly commended: Euro Car Parts

Aston Barclay also picked up a ‘highly commended’ certificate – Tom Mapes, centre, and Richard Cross are pictured receiving the award from James Baggott

NONE of the three winners in this category was able to be with us on the night of the Car Dealer Power awards ceremony. Nevertheless, they should be extremely proud of their success! Our two highly commended winners both received huge numbers of votes from our dealer readers, so it was a big well done to Dingbro and Euro Car Parts. However, there was no doubt in our readers’ minds who the Motor Factor of the Year should be – and the spoils went to Motor Parts Direct. It’s a company that has established an enviable reputation for quality and reliability, while at the same time meeting all its targets for successful growth. The strength of its operating model lies in a combination of buying power, training resources and distribution muscle: something to which the company has committed since day one. CarDealerMag.co.uk | 39

Survey. Online Advertiser for New Cars

Online Advertiser for Used Cars

Winner: What Car?

Winner: eBay

Highly commended: Auto Trader

Highly commended: Carwow

Highly commended: Motors.co.uk James Baggott, right, presents the trophy to Paul Shoesmith from What Car?

IF you’re selling new cars, it’s incredibly important to have as many routes to market as possible, and our three finalists excel in this field. Our two highly commended winners – Auto Trader and Carwow – are well-known and highly respected names, and both received enormous numbers of votes from the readers of Car Dealer Magazine. Our winner though, and a relative newcomer to this area, pipped them to the post. More than 20 million people visit its website each year to research their next car. It helps dealers avoid getting into a race to the lowest price and helps protect the privacy of consumers too. Guests were asked to give a round of applause for our winner in the Online Advertiser for New Cars category – What Car? Well done.

Extra Mile Award Winner: GForces

Awards co-host Jack Evans presents the trophy to Hannah Fisher from eBay

SHIFTING used metal is key to the success of car dealerships up and down the land, so they need a reliable partner to develop and protect this important income stream. Before the identity of our overall winner was revealed, it was time to find out who the two highly commended winners were – and the certificates went to Auto Trader and Motors.co.uk. But this year’s top dog when it comes to the online advertising of used cars was revealed to be eBay, which powers a dedicated site for vehicle sales and enables dealers to manage their inventories and get their vehicles in front of 12 million unique visitors a month. Many congratulations to eBay on a great achievement in a tough category.

Motors.co.uk was highly commended in this all-important category. On the left, James Baggott presents the certificate to Hannah Fisher, centre, and Gillian Davison

Jack Evans presents the trophy to Oliver Stell from GForces THE Extra Mile Award has no finalists as such – just one overall winner who received the most votes from dealers. This year’s recipient was GForces, one of the best-known and most highly respected names in the automotive world. Just before he presented the trophy, awards co-host Jack Evans said: ‘Consumers are hugely demanding these days – they’re always online, so dealers need to deliver fantastic connected services that meet people’s needs and match the experiences they get outside of automotive. ‘Our winner helps them do that thanks to their next-generation technology combined with consumer intelligence based on billions of interactions. It’s a big company but always gets the little things right, which is very much appreciated by our readers. Well done to GForces!’ 40 | CarDealerMag.co.uk

As well as their triumph in the Used Car Valuations category, Auto Trader picked up highly commended awards in three other categories: Online Advertising for New Cars; Online Advertising for Used Cars; and Lead Generation. What a successful night!

Finance Provider of the Year – Sub-Prime

Product Innovation of the Year

Winner: Blue Motor Finance

Winner: Lawgistics for HR Manager

Highly commended: Evolution Motor Finance Highly commended: First Response Finance David Padilla from Blue Motor Finance receives the trophy from Car Dealer founder James Baggott THE ideal situation for any dealer is that there is a car for every customer who walks through the doors. As we all know, though, life isn’t always that straightforward, because some people have impaired credit ratings and a bit of a chequered history. Fortunately, there are several wonderful organisations that can provide funding for those customers – and we were delighted to honour three of the best ones at the Car Dealer Power awards night. Guests were first of all asked to put their hands together for our two highly commended winners in this keenly fought category – Evolution Motor Finance and First Response Finance. But our winner, as voted for by the readers of Car Dealer Magazine, was a company that won praise for its remarkable innovations and speedy decision-making – with the victor being Blue Motor Finance. Good work by all three!

First Response Finance was highly commended in this category. James Baggott presents the certificate to Ben Garside from the company

A delighted Joel Combes from Lawgistics receives the trophy from Car Dealer founder and awards host James Baggott THERE was certainly a lot of innovation for our voters to choose from in 2019. This year, though, the prize went to a company familiar to Car Dealer readers as it has developed a fantastic piece of software. It gives business owners the power to delegate employment law, health & safety, GDPR and HR responsibilities to a designated person within their company. And it even demonstrates best practice, assists in the meeting of legal obligations and helps employers show due diligence. In fact, whatever personnel issues you might be facing, this product will be able to help. Our Product Innovation of the Year for 2019 was revealed to be... HR Manager from Lawgistics! HR Manager was the brainchild of Lawgistics sales and marketing director Joel Combes. He said after collecting the trophy: ‘Picking up this award means a great deal to me personally as well as to Lawgistics. ‘HR Manager was an idea I had five years ago. It has been live for less than a year but has received an immense amount of positive feedback. ‘It makes me very proud to hear how businesses have improved the way they manage compliance and HR when using the software. It’s also rewarding to see how it can improve employee productivity within weeks. ‘We are so grateful to everyone who voted for HR Manager and also those who supported us with its development. HR Manager would not be what it is today without their input. Thank you, motor trade.’

Finance Provider of the Year – Prime

Consumer Lead Generation Site of the Year

Winner: Close Brothers Motor Finance

Winner: Codeweavers

Highly commended: Black Horse

Highly commended: Auto Trader

Highly commended: Blue Motor Finance

Highly commended: GForces & Gubagoo

OUR two highly commended winners came in for lots of praise from dealers. Guests were asked to applaud the success of Black Horse and Blue Motor Finance. But our winner, Close Brothers Motor Finance, has really excelled this year in the eyes of our readers. It provides affordable and flexible finance solutions for new and used cars, not to mention motorbikes and vans, right across the UK and Ireland. Congratulations!

In today’s digitally focused world, no dealer can bank on a steady stream of customers without the help of online lead generation. Leads alone can’t be relied upon, it’s about quality, as we all know. That was the recurring theme with the comments in this category. Highly commended were Auto Trader and GForces & Gubagoo – and our category winner here was Codeweavers. Well done everyone! CarDealerMag.co.uk | 41

42 | CarDealerMag.co.uk

Survey.

Car of the Year Winner: Suzuki Jimny THE Suzuki Jimny was voted Car of the Year. Announcing the result, Blackball Media head of content Jack Evans said: ‘It really does seem as though the best things come in small packages. The Suzuki Jimny is a stylish and rugged 4x4, with bags of character, a distinctive design and undoubted kerb appeal. Dealers can’t get enough of it – quite literally. ‘Buyers are queuing round the block and there are lengthy waiting times. That’s not necessarily a bad thing, though, as potential purchasers could always be tempted into something different from the manufacturer’s range. Many congratulations to Suzuki.’ Dale Wyatt, director of automobile at Suzuki GB, said he was delighted at Jimny’s success. He added: ‘Jimny is an example of a pure design. Too many cars are designed by committee – a committee wouldn’t design a Jimny. ‘It’s the perfect imperfect car – its imperfections are the things that make it perfect. Jimny is a professional car designed for professional users and has a real purity about it, which I love.’ It seems that the readers of Car Dealer Magazine love it too! Well done to Suzuki!

Dale Wyatt, director of automobile at Suzuki GB, right, collects the brand’s award from Jack Evans

CarDealerMag.co.uk | 43

Survey. Figures paint a mixed picture of dealer satisfaction levels

or our manufacturer readers, the table below will make fascinating reading. For some of them, examining the numbers will be uncomfortable. That’s because quite a few of our best-known carmakers seem to be falling short as far as their dealer partners are concerned. For those unfamiliar with the workings of Car Dealer Power, here’s how the rankings were compiled. Dealers were asked to award their

manufacturers marks out of 10 in a variety of categories – you can see them listed below. There were 13 sections. The totals were added together and then a percentage worked out that led to each manufacturer’s placing in the table. A carmaker could only be included if 10 or more of its dealers completed our survey – so if you filled in a form and the manufacturer you represent isn’t shown, that’ll be why. Twelve of the 28 manufacturers managed to

achieve more than half marks overall, with a big difference between top and bottom and a median score of 46.7 per cent. Car Dealer’s Dave Brown said: ‘Clearly, some manufacturers are doing a great job – but the results this year paint a very mixed picture. ‘I suspect the mood of our participating dealers will have been affected by the political and economic uncertainty they are continuing to experience, and who can blame them?’

Below are the average marks out of 10 that dealers awarded their manufacturers in 13 key categories, followed by the final overall percentage

s 19 18 er rer 20 n 20 tu off c n e c fa s io io er an nu sit osit Po P Ma Fin Off

r po

s les

ter Af

ing

et ark

t ne

s es

an Br

are aw

lity ibi

ss ce Ac

to ch

a ro pp

er int

w Ne

u rs

d se

g re nin s nt ctu lan e u p r m t ss ire ard I nu qu rw o e o F R B RO n

a rm

e ag

l ina

Mazda

9.5

9.8

8.4

6.2

10.0

7.4

7.6

7.4

9.8

9.6

8.6

8.8

86.6%

Kia

8.3

8.6

8.4

8.2

8.4

9.2

7.7

8.0

9.0

8.7

8.5

8.8

84.5%

Hyundai

5.7

7.3

6.6

5.7

6.8

6.2

6.4

6.8

6.6

6.1

5.9

6.6

6.2

63.8%

BMW

7.0

6.2

5.7

7.1

4.5

7.3

7.0

7.3

7.0

5.0

4.8

3.4

61.0%

Volkswagen

7.9

5.0

7.0

8.3

5.8

5.3

4.0

6.2

5.0

4.3

4.4

3.4

57.3%

Toyota

6.3

6.0

5.8

4.5

5.6

5.8

5.1

6.5

5.8

3.6

5.4

5.6

55.6%

Porsche

5.1

6.3

5.7

6.3

5.7

6.3

3.8

5.7

5.1

5.7

5.1

55.5%

Suzuki

7.9

5.6

5.8

6.3

6.0

5.8

5.6

3.8

4.2

4.9

5.8

4.9

5.4

55.4%

Volvo

5.7

5.9

5.7

6.2

5.2

5.7

5.5

5.2

5.5

4.8

4.6

4.8

54.4%

Mercedes-Benz

5.6

5.4

5.8

4.5

5.8

5.3

5.0

5.4

5.3

4.8

5.0

52.9%

Ford

7.4

5.1

7.0

6.2

5.5

4.7

4.8

4.6

4.3

4.5

4.8

4.7

4.8

52.6%

Jaguar

7.4

8.5

5.4

5.1

3.8

5.1

4.0

6.0

4.2

4.9

5.6

3.1

52.3%

Subaru

4.4

6.3

4.4

3.1

6.3

5.1

3.1

5.1

4.4

49.1%

Honda

5.4

5.1

3.8

5.1

5.4

4.0

5.1

3.5

4.8

4.3

4.8

47.8%

SsangYong

5.3

7.3

6.5

4.7

2.9

6.7

5.3

4.1

3.1

2.9

3.9

2.3

2.9

44.5%

Seat

4.6

4.0

4.6

4.3

4.6

3.5

3.2

3.5

4.0

4.3

41.6%

5.0

5.4

3.2

2.9

4.3

3.2

4.7

2.9

2.1

3.9

4.3

38.6%

Land Rover

5.4

4.2

4.5

4.0

4.5

3.6

3.3

3.1

3.7

3.0

3.6

38.5%

Skoda

4.8

5.1

4.5

3.1

3.6

3.1

3.6

4.2

3.1

3.6

4.2

3.1

38.2%

N/A

Ferrari

3.8

4.0

3.3

3.8

3.9

4.1

3.6

3.7

3.8

3.6

3.8

4.0

37.8%

Audi

3.9

3.4

3.5

4.2

3.7

3.9

3.5

3.9

3.4

4.0

3.9

3.5

37.5%

Peugeot

4.4

4.9

2.4

4.4

4.9

3.2

3.6

3.9

3.2

2.4

3.6

36.7%

Vauxhall

3.8

4.1

2.8

3.4

3.6

3.0

3.2

34.8%

Nissan

4.9

5.0

2.3

4.5

2.0

2.7

1.8

2.9

1.8

1.6

2.5

2.3

30.2%

Fiat

5.5

3.5

3.1

3.5

3.1

1.1

1.5

2.3

3.5

1.5

2.3

1.5

2.7

27.0%

Renault

3.0

2.1

2.7

3.0

2.4

3.0

1.5

0.9

2.1

25.2%

Mitsubishi

2.8

1.6

3.3

3.7

2.8

3.3

1.6

2.0

1.2

24.9%

Citroen

3.4

1.8

3.4

3.6

1.8

2.2

1.8

1.6

1.5

1.4

1.9

23.1%

44 | CarDealerMag.co.uk

e or sc

Manufacturer of the Year Winner: Mazda MAZDA was named Manufacturer of the Year at the 2019 Car Dealer Power awards night, with comments from dealers such as ‘they’re definitely seen as a cool brand’. Car Dealer founder James Baggott said: ‘Many congratulations to Mazda. They were the clear winners this year and it is a fantastic achievement. ‘In the grand scheme of things, Mazda isn’t the largest manufacturer, but its cars represent a genuinely unique proposition for new car buyers. Its sharply styled hatchbacks, SUVs and saloons are competitively priced, look great and stand out with high-quality interiors and generous equipment. Plus, in the MX-5, Mazda has a desirable and affordable sports car.’ He added: ‘Interestingly, Mazda hasn’t jumped on the electric vehicle bandwagon too early and has continued to perfect the internal combustion engine. ‘By forging its own path, Mazda has managed to stand out from the crowd, and the UK car market is all the better for it. No wonder its dealers are so happy.’ Commenting on the award, Jeremy Thomson, Mazda UK managing director, said: ‘It feels that the UK has never been more divided and this award comes at a very poignant time. As we risk disruption across economic and geographical lines, throughout society and in business, it has never been more important for manufacturers and their dealers to work in close partnership.’ He added: ‘In uncertain times, it is only by working together that we can grow the brand, unlock profit potential and set the foundations for a stable and prosperous future – one that delivers an exceptional and premium customer experience to everyone.’

Jeremy Thomson collects Mazda’s trophy from James Baggott, founder of Car Dealer Magazine. Below: The iconic MX-5

Second place: Kia

Third place: Hyundai

IT’S no surprise to see Kia on this list, hot on the heels of the overall winner. Its products have a premium air about them without the associated price tags, most epitomised by the Kia Stinger, which is a genuine rival to coupes from the likes of BMW and Mercedes-Benz. Then there are the various iterations of Ceed, such as the Proceed with its Porsche Panamera-esque styling, and the new Xceed, which provides another great-looking option in the crossover market. And with strong EVs in the form of the highly commended e-Niro as well as the new Soul EV, it’s well prepared for a changing industry. Although the manufacturer couldn’t quite repeat the success it has enjoyed in previous years, when it occupied the number-one position in the Car Dealer Power manufacturer table, second place is still very creditable, with ‘accessibility’ and ‘forward planning’ its two highest-scoring categories. Well done indeed to everyone at Kia.

IT’S difficult to keep track of the leaps and bounds that Hyundai has made in recent years. Indeed, if you’d said a decade ago that the South Korean firm would have introduced its own Golf GTI rival along with an upmarket SUV, it probably would’ve been hard to believe. However, it’s done just that; the i30N has arrived and taken the performance sector by storm, while the Tucson has given rivals a real run for their money. But Hyundai has managed to keep key principles at its core. There’s value for money, obviously, along with genuinely solid build quality and, of course, that all-important seven-year warranty. It’s why people across the board are being attracted to Hyundai – and why its dealers are so pleased with the way things are going. Hyundai is tapping into electrified motoring too. Cars such as the Kona Electric are breaking the mould in terms of what we expect from ‘everyday’ EVs thanks to their impressive ranges. This is a well-deserved third place and Hyundai should feel very proud. [CD]

CarDealerMag.co.uk | 45

Thank you for voting for us as the Used Car Valuations Provider of the Year Chris Penny Brand Director Auto Trader

Following our recognition as the Used Car Valuations Provider of the Year at the 2019 Car Dealer Power Awards, we thought it only right that we take the time to thank everyone who voted for us. To win an award is cause enough for celebration but to win it by election of the very customers and market we serve, receiving more votes than the two highly commended brands combined, is truly humbling. So, from everyone at Auto Trader, a huge thank you for your support, it really does mean a lot to us. We work hard to provide our customers with the tools they need to win in today’s challenging and competitive market. We’re especially proud of the accuracy of our valuations data and the positive impact it has on the thousands of retailers and consumers who rely on it every day to make informed buying and selling decisions.

Did you know that our valuations are powered by the largest data set of its kind? In fact, our team of data scientists monitor over 1.9 million vehicles each day, including 90,000 vehicle updates and an average of 19,000 vehicles added or removed from Auto Trader. Coupled with data from circa 450,000 trade car listings every day, as well as additional retailer forecourts and website data, they’re the most accurate reflection of the live retail market. We believe this level of insight is essential in such a fast-moving market. Indeed, we know that retailers using our AT Retail Accelerator and AT Retail Check forecourt management products, of which valuations are a core part, typically sell their cars an average of 12.8 days faster, and turn their total stock 30% quicker, than those who don’t.1

Making prices and part-exchange valuations more accurate...and more profitable Misleadingly, used car retail valuations can seem straight forward. However, we know that a variance of less than half a percentile point can be the difference between a quick sale and an overage burden. It’s here that the accuracy of our used car valuation data and products have the biggest effect. Back in 1903, you could buy a Vauxhall ‘light’ Car for 130 guineas, with the option to add a roof for an extra seven; that was it. Supply was low to say the least and demand was equally scarce (137 guineas was roughly four year’s salary for the average manual labourer). Back then, due to the fact there wasn’t much choice or information, consumers were blind to knowing what a car was worth. It’s a position which didn’t change significantly for much of the 20th Century, and a contributing factor to the lack of trust in retailers that can still be found today. In 2019 however, thanks to the sophistication of mobile technology, consumers have access to information that would have been unfathomable 20 years ago, let alone a hundred. Able to call upon a raft of third party sites offering free valuations or indeed a list of the circa 450,000 cars on Auto Trader today, consumers can, and often will, make a ‘best guess’ at what a car is worth.

Retailers using our AT Retail Accelerator and AT Retail Check forecourt management products typically sell their cars an average of 12.8 days 1 faster, and turn their total stock 30% quicker, than those who don’t. 46 | CarDealerMag.co.uk

If we look at a specific car currently advertised on our marketplace - DT68 XXX, a 2019 late 68-plate Corsa 1.4 with just over 8,000 miles - we can see how the accuracy of our valuations can make a difference in buying and selling stock, particularly through partexchanges. Our current market average retail value for this car is £10,089, with a part-exchange value of £7,600.2 Other third-party sites suggest a partexchange value of between £7,970 to £9,510.

Unlike competing platforms, the depth of our data and sophistication of our products, such as Retail Accelerator, means we can see that DT68 XXX has additional options from the standard variant, so our valuations are updated accordingly. As well as identifying the model is in over supply3 and may therefore take longer to sell, Retail Accelerator can also see it’s in high demand. As a result, it adjusts the retail price to £10,917 and the part-exchange value to £8,230. This level of insight, combined with a retailer’s own expertise, puts them in a position to delight the consumer by potentially offering a higher part-exchange amount. However, it’s not just in sourcing the car where an accurate valuation can have an impact. On the forecourt, retailers stand to make a higher profit by offering the vehicle at a price that will be reflected on our marketplace as a Good Price or a Great Price. It’s worth noting, the retail expectations offered by another popular third-party valuation provider offered a target retail range of £9,770 to £10,370 for the same vehicle.

We know that under (or over) valuing a vehicle when listing it for sale can often result in scepticism from the consumer and is also proven to have a detrimental effect on the days-to-sell of the vehicle (and underpriced can have a detrimental effect too, proving that it’s not a race to the bottom).

Giving you the competitive edge The insight provided by our forecourt solutions go even further to provide our retailers with a competitive edge. Thanks to the scale of our data, we can provide retailers with a national market summary and a detailed view of competitive cars on Auto Trader and where a specific vehicle may appear. As a result of the growing availability of information, the spread of ‘valuation’ sites and the increasingly out-dated and inaccurate method applied by some providers, car buyers have been inundated with conflicting information – making them more confused than ever. They’re looking for valuations they can trust, and we know that 86% of consumers trust the Auto Trader brand when searching for their next car.4 As a result of this we invest heavily to ensure our valuations are as accurate and up to date as possible. We’re committed to making the car buying and selling process as stress free as possible - providing consumers with the trust and transparency they demand and our customers with the tools they need to win.

86% of consumers trust the Auto Trader brand when searching for their next car.4

1: Auto Trader data warehouse, Retail Accelerator customers average speed of sale vs non-customers. 2: Part-exchange valuation based on the vehicle being in “Good condition”. 3. Amongst the many additional features our forecourt management product offer, we are able to provide a Retail Rating for a vehicle, highlighting it’s expected days to sell, with live supply and demand information* 4. Auto Trader Brand Tracker, August 2019.

For the latest news, views and insight for the automotive retail community, follow @ATInsight on Twitter and LinkedIn CarDealerMag.co.uk | 47

48 | CarDealerMag.co.uk

Forecourt.

FIRST DRIVE

Skoda Kamiq

THE KNOWLEDGE

Skoda’s assault on the compact SUV segment has arrived, but how does it stack up? Jack Evans headed to France to find out… What is it? In case you hadn’t noticed, SUVs are big business now. Hatchbacks and small estates continue to be shunned in favour of compact offroaders and crossovers – and Skoda is a company well aware of this. It’s why it has now bolstered its SUV line-up with this – the new Kamiq – which sits alongside the Karoq and Kodiaq in the firm’s range of high-riders.

What’s new? As we’ve mentioned, that compact platform underpins the Kamiq, and you’ll find many other aspects of the car influenced by Skoda’s Volkswagen Group owners too. The benefit of this is that there are many high-end functions now available on the pint-sized Czech machine, such as lane keep assist, front assist with city emergency braking and predictive pedestrian protection. There’s plenty of interior tech on offer here too, while Skoda has fitted systems such as Apple CarPlay and Android Auto to ensure that even the most tech-savvy aren’t left disappointed.

What’s under the bonnet? Powering our particular Kamiq is a 1.0-litre turbocharged petrol engine putting out 113bhp and 200Nm of torque. Despite its compact size, this powertrain can push the Skoda from 0 to 60mph in a little under 10 seconds, and flat-out you’ll be doing

a heady 120mph. But of course, efficiency is further up the agenda here than outright performance, so it’s good to see that the Kamiq can return up to 53.3mpg while emitting between 120 and 150g/km CO2, depending on trim. Here, our car utilises a six-speed manual gearbox, though a DSG auto is available too. Skoda believes that this engine is likely to be the most popular, though it is joined in the range by a larger 1.5-litre petrol, and a 1.6-litre turbocharged diesel.

What’s it like to drive? Given that the Kamiq rides considerably higher than the Scala hatch, you could forgive the dinky SUV for wallowing a little in the bends. However, this isn’t the case. When pushing on, the Kamiq handles admirably, managing its taller ride height impressively well. The ride quality is also superb – no Skoda-related pun intended – and it’s helped by a distinct lack of road noise, though there’s a little bit of wind chatter.

How does it look? You could argue that the appearance of the Kamiq is that of the larger Karoq albeit put on a hot wash, but you can’t argue with Skoda’s approach here. It has managed to give its cars a distinct ‘face’, and there’s a definite lineage between the SUVs ranging from the Kamiq up to the Kodiaq.

What’s it like inside? Despite being on the same platform as the pint-sized Seat Arona, the Kamiq has a long wheelbase which means it’s able to offer more interior space. It’s noticeable, too; sit in the back and there’s plenty of leg- and headroom, even for taller passengers. Our car came with a panoramic sunroof and it didn’t impede headroom at all. Up front, things are light and airy. There are some cheaper plastics to be found, but this is to be expected of a car in this segment. The top of the dash has been trimmed in a soft-touch rubberised material, though, and this really does help lift the overall perception of quality in the cabin.

What’s the spec like? All cars get an infotainment system, though the screen’s size varies depending on specification, going from a base 6.5-inch unit right the way up to 9.2 inches. A new built-in eSIM means that the Kamiq’s satellite navigation can be consistently kept up-to-date, and also allows drivers to access Skoda’s mobile online services. As mentioned, Apple CarPlay and Android Auto are included as standard, which helps to integrate a smartphone into the car’s system via a cable – or wirelessly via the Wireless Smartlink optional extra. And, as we’ve seen on other cars released recently, the Kamiq packs

Model as tested: Skoda Kamiq Price: £TBA Engine: 1.0-litre turbocharged petrol Power: 113bhp Torque: 200Nm Max speed: 120mph 0-60mph: 9.7 seconds MPG: 42.8-53.3 Emissions: 120-150g/km CO2 TARGET BUYERS: Those who want a well-built, well-finished and well-priced compact SUV. THE RIVALS: Seat Arona, Nissan Juke, Volkswagen T-Cross KEY SELLING POINTS: 1. Great build quality. 2. Efficient engines. 3. Surprisingly involving to drive. DEAL CLINCHER: The Kamiq's all-roundedness puts it high up the pecking order in a market awash with crossovers and makes it well worth considering. USB-C ports – so if you’re using older USB connections, you’ll need to buy an adapter.

What do the press think? Auto Trader said the Kamiq is ‘an excellent small SUV’ while Auto Express said the car is ‘predictably brilliant’.

What do we think? There’s no reason why you wouldn’t be happy to find yourself with the keys to a Kamiq. It’s arguably one of the most practical and spacious cars in its segment. CarDealerMag.co.uk | 49

Forecourt. FIRST DRIVE

Speed

Flat out, the McLaren GT will crack 203mph.

McLaren GT The GT is the latest car to come from Wokingbased McLaren – but what’s it like to drive? Jack Evans has been to France to find out.

What is it? When you think of McLaren, what comes to mind? Most likely it’ll be a razor-edged supercar, be-winged and bellowing, all low-flying splitters and carbon-backed bucket seats. For the most part that’s true, but to tap into the lucrative grand tourer segment, the Woking-based firm has introduced this – the GT. It’s designed to be a car that offers all the thrills of a McLaren but with the comfortable, continent-crossing abilities that you’d want from a GT. Has it nailed both aspects and can it make headway against established rivals in the class? We headed to the south of France to find out.

What’s new? Traditionally, McLaren cars sit in three main categories – Sports, Super and Ultimate. The GT sits in none of those, instead residing in a new category out to one side which, handily, is called ‘GT’. Despite being out on a limb, the GT uses the same basic components as the other cars in the range. However, some subtle changes have been made to make the GT more comfortable. The ride height can be increased to match that of a Mercedes C Class in order to get over bigger speedbumps, while the glass has been thickened to improve in-cabin refinement, too.

What’s under the bonnet? Mounted in the middle of the GT is McLaren’s tried-and-tested 4.0-litre twin-turbocharged V8 engine, which here produces 612bhp and 630Nm of torque. It’s driven to the wheels through a seven-speed gearbox, which incorporates a launch control function for seamless standing starts. The GT’s performance stats make for impressive reading; 0 to 60mph takes 3.1 seconds, and flat out it’ll crack 203mph. The GT certainly ticks the right boxes when it comes to performance, then. Economy-wise, McLaren says the GT will return 23.7mpg combined, while emissions sit at 270g/ km under the latest WLTP tests. And when it comes to range – a key factor in grand tourers – McLaren says the GT will manage 414 miles 50 | CarDealerMag.co.uk

‘Thumb the large red starter button in the centre of the cockpit and the 4.0-litre V8 rumbles into life.’ between trips to the pump, but this is under the older, less stringent NEDC tests.

What’s it like to drive? Thumb the large red starter button in the centre of the cockpit and the 4.0-litre V8 rumbles into life behind you and, initially at least, things are impressively simple. Around town, the automatic gearbox shifts smoothly, and the engine is barely audible as it ticks over. Gather some pace – which is easy to do in the GT – and the car is just as easy to drive. The steering

has a decent amount of weight to it, and taking manual control of the gearbox results in crisp, seamless shifts. The traction control systems aren’t too intrusive either, although in fully-on modes they can be a little over-eager to disengage the power. We’d just like it to sound a little more exciting; the exhaust note feels a bit flat at times. The car’s only real drawback is that when travelling at speed the GT just isn’t as cossetting as rival grand tourers. The ride is good, but

Space

The boot is large enough for a set of golf clubs or skis.

THE KNOWLEDGE Model: McLaren GT Luxe Price (as tested): £163,000 Engine: 4.0-litre twin-turbo V8 Power: 612bhp Torque: 630Nm Max speed: 203mph 0-60mph: 3.1 seconds MPG (combined): 23.7 Emissions: 270g/km CO2 TARGET BUYERS: Those for whom a regular McLaren is too sharp. THE RIVALS: Aston Martin DBS Superleggera Bentley Continental GT BMW M8

Engine

A 4.0-litre twin-turbo V8 is mounted in the middle of the car.

it doesn’t feel vastly improved over a regular McLaren such as the 720S, for instance.

How does it look? Long, imposing and impossibly sleek, the McLaren GT is a car that turns heads wherever it goes. Rocking in at nearly 4.7m, it’s almost 300mm longer than a Ford Focus, for instance, and longer than any Sports or Super Series McLaren. The tapered rear end evokes the look of the upcoming Speedtail hypercar, too. Around the back of the car things are equally sharp. The look is far less in-your-face than other cars in the McLaren range, that’s for sure, but it mirrors the under-the-radar, subtle approach usually taken with long-distance grand tourers.

What’s it like inside? Open up the scissor doors, slide into the cabin and you’re met with a driver-focused seating position. In truth, we’d like the seat to go a little lower – but everything is logically placed around you, and there’s tons of adjustment in the

steering wheel. The whole forward area is kept impressively clutter-free too, with all of the main controls accessed via the central touchscreen that dominates the middle of the cabin. McLaren has made a big deal of storage space with the GT – it is a grand tourer, after all. At the rear there’s 420 litres of space, with a further 150 litres located in the nose.

What’s the spec like? The main infotainment offering comes courtesy of an all-new touchscreen set-up, which is a huge leap for McLaren. Clear, crisp and responsive, it’s a genuinely impressive unit to interact with and makes accessing key features such as navigation or heating and ventilation controls far easier than on previous McLaren models. Our car came in Luxe specification – a step up over the regular car – and this adds electronically controlled seats with heating, as well as a function that automatically moves the seats to their rearmost position when parked, making

KEY SELLING POINTS: 1. Razor-edged performance. 2. Striking looks. 3. Relatively spacious. DEAL CLINCHER: The McLaren GT is there for those who want a slightly more spacious supercar. exiting the vehicle easier. The trim also includes a piano-black finish for the infotainment screen surround, along with chrome highlights which combine with interior lighting to give the cabin a spaceship-like feeling.

What do the press think? Top Gear said: ‘It drives like a McLaren sports car should, but a GT should probably be more practical.’ Autocar said: ‘Woking’s most user-friendly car to date is still a McLaren first and foremost, and a GT more in name than behaviour.’

What do we think? The GT feels a little muddled. It’s not as sharp as other McLarens in the range and only feels slightly more comfortable out and about than cars such as the road-orientated 570S – while in out-and-out cross-country sumptuousness it’s trumped by rivals. That’s not to say the GT is a bad car as a whole – far from it – it just feels like McLaren introduced it because it felt it needed to. CarDealerMag.co.uk | 51

Forecourt.

FIRST DRIVE

BMW M8 Competition Convertible

THE KNOWLEDGE

Ryan Hirons went topless to try out the German manufacturer’s monstrous version of its new flagship 8 Series that’s been a long time coming. What is it? Wind back to the ’90s and the original BMW 8 Series. That sleek flagship was crying out for proper M treatment to make it a true highperformance coupe. BMW actually began a project to develop such a car, but ultimately canned it because of global financial difficulties. It seemed the BMW M8 would never happen. Until now. When it had the chance, the German firm had no hesitation in producing a monstrous version of its new flagship 8 Series.

What’s new? We’re driving the M8 in Competition form – the only variant in the UK – in its convertible style. Its engine is an advancement of the 4.4-litre V8 unit found in the M850i, while a number of adjustments have been made to the chassis to cope with the high levels of power. Alterations have been made to the car’s ‘xDrive’ all-wheeldrive system for a more rear-biased approach too, while a small change comes in the form of the centre console-mounted M Mode button.

What’s under the bonnet? Powering the M8 Competition is a twin-turbocharged 4.4-litre V8 – producing 617bhp and 750Nm of torque to make it the most powerful engine BMW has produced for its cars. That power is delivered to all four wheels via 52 | CarDealerMag.co.uk

an eight-speed gearbox. For the convertible, the result is a stated 0-60mph time of 3.1 seconds while its top speed is capped at 155mph, although that can be increased to 189mph with the optional £2,095 M Driver Package. BMW says the drop-top will return 25-25.2mpg while emitting 254-256g/km of CO2.

What’s it like to drive? Though far from boring, it’s very clinical in the way it undertakes more spirited driving. Monumental grip is offered by its all-wheel-drive system, with the car very difficult to unsettle through corners. A more hamfisted approach tends to encourage understeer more than oversteer, so don’t expect extreme levels of tailout action here. It’s remarkably comfortable at a cruise, although that does raise the question why buyers looking for something to chew miles up wouldn’t consider the cheaper M850i or even 840d.

How does it look? Changes from the regular 8 Series design aren’t major, but there's a more aggressive aerodynamic package. The front bumper sports fiercer intakes, while opting for the M Carbon option puts plenty of (you guessed it) carbon-fibre bits around the outside of the car. At the back, a quad-exit exhaust is

more than a slight nod to the car’s performance, with M8 Competition badging and model-specific 20-inch alloys rounding out the package.

What’s it like inside? There’s no major move from the plush cabin found in the regular 8 Series for the M model. Some subtle tweaks are present, though. Gone is the crystallised shifter from the regular car and in its place is a leather-wrapped unit with an ‘M’ embossed. There’s also a host of carbon-fibre bits, along with ‘M’ logos emblazoned throughout.

What’s the spec like? Exterior equipment includes 20inch alloy wheels, adaptive LED headlights and a gloss-black rear spoiler. Inside boasts heated sports seats, full leather upholstery and M-related visual items. Pricing for the coupe kicks off at £123,345, moving up to £130,435 for the convertible. That’s a pricey prospect alone, but it rises even further when ticking the options. Packs offered and previously mentioned include the £2,095 M Driver package and £4,995 M Carbon exterior package. Both can be had as one under the ‘Ultimate Pack’, commanding a £20,000 premium, which also gives you carbon ceramic brakes, ventilated seats plus a Bower and Wilkins ‘Diamond’ audio system among other extras.

Model: BMW M8 Competition Convertible Price (as tested): £130,435 Engine: 4.4-litre twin turbocharged V8 Power: 617bhp Torque: 750Nm Max speed (limited): 155mph 0-60mph: 3.1 seconds MPG: 25-25.2 Emissions: 254-256g/km CO2 TARGET BUYERS: Those who want a lot of performance from their convertible. THE RIVALS: Mercedes-AMG GT S Roadster, Porsche 911 Convertible, Aston Martin Vantage Roadster. KEY SELLING POINTS: 1. Brutal performance. 2. Drop-top thrills. 3. All-wheel-drive capability. DEAL CLINCHER: The M8 Competition Convertible manages to be a combination of a GT and super-sports car.

What do we think? Placing this between high-end sports car and grand tourer is tricky. True, it delivers its performance in a brutal way, but it doesn’t offer the delicacy and poise of, say, a Porsche 911. As a grand tourer, it’s impressively refined and exceptionally comfortable, although those wanting this from an 8 Series could save some cash and opt for an M850i. But if the idea of a cruiser with the ability to turn on nearsupercar performance at the flick of a switch appeals, the BMW M8 ticks that box.

Join the Go-Karting Challenge

Car Dealer Magazine and Close Brothers Motor Finance have teamed up to host the 2019/2020 Go-Karting Challenge. 5 regional qualifying rounds

(Stockton, Manchester, Reading, Harlow and Cardiff)

Free to enter â&#x20AC;&#x201C; either as an individual, or as a group of up to four people Food and refreshments also available 90 minutes endurance race Top two teams go through to the final in Leicester in March 2020 Register your interest for the Reading event, which takes place on Wednesday 13 November by visiting cardealermagazine.co.uk. Reading: TeamSport, Cradock Road, Reading, RG2 0EE

CarDealerMag.co.uk | 53

The UKâ&#x20AC;&#x2122;s fastest selling cars* according to Auto Trader Scotland 1 2016 Mercedes-Benz A Class auto diesel 2 2016 Land Rover Discovery Sport auto diesel 3 2016 Dacia Sandero Stepway manual petrol

North East England 1 2016 Volkswagen Polo manual petrol 2 2016 Land Rover Discovery Sport auto diesel 3 2015 Volkswagen Polo manual petrol

Northern Ireland 1 2015 Volkswagen Polo manual petrol 2 2016 Volkswagen Polo manual petrol 3 2016 Mercedes-Benz A Class manual diesel

North West 1 2016 Land Rover Discovery Sport auto diesel 2 2015 VW Polo manual petrol 3 2017 VW Polo manual petrol

West Midlands 1 2016 Renault Captur auto diesel 2 2016 Mercedes-Benz A Class auto diesel 3 2015 Volkswagen UP! manual petrol

Wales 1 2016 Volkswagen Polo manual petrol 2 2015 Volkswagen Polo manual petrol 3 2016 Mercedes-Benz A Class auto diesel

South West 1 2016 Mercedes-Benz A Class auto diesel 2 2016 Land Rover Discovery Sport auto diesel 3 2015 Volkswagen Polo manual petrol 54 | CarDealerMag.co.uk

Retail rating

Days to sell

98.78 98.54 99.43

29 days 29 days 30 days

Retail rating

Days to sell

98.96 97.57 99.32

30 days 30 days 32 days

Retail rating

Days to sell

99.66 99.04 95.24

30 days 30days 30 days

Retail rating

Days to sell

98.77 99.41 99.18

28 days 30 days 30 days

Retail rating

Days to sell

97.22 98.47 98.92

29 days 30 days 31 days

Retail rating

Days to sell

99.60 99.60 98.41

29 days 29 days 29 days

Retail rating

Days to sell

98.71 98.69 99.71

28 days 29 days 30 days

Utilising the most up to date market intelligence, we take a look at which cars are currently leaving UK forecourts fastest in each region. Auto Trader research shows that overage stock is affecting nine out of 10 retailers and costing them an average of £24,285 in lost profits each year. As part of this year’s prestigious Car Dealer Used Car Awards, Auto Trader will use its industry leading capabilities to identify and celebrate those retailers that are utilising market intelligence data to complement their own expertise to manage this challenge. Key to their success is accurately identifying which vehicles are popular in their area and pricing them to the live retail market from day one, helping them to sell more cars, faster and making more profit in the process. Earlier this summer, Auto Trader launched its Fastest Selling Index, identifying which cars are taking the least amount of time to leave forecourts around the UK. Powered by its unique AT Retail Rating metric, which analyses national

live market supply and consumer demand to assign a 1-100 rating as well as the number of days the vehicle is likely to sell when priced at the current market value. Continuously updating to reflect the live retail market, it utilises the full scale of Auto Trader’s data capabilities. And unlike other models which offer a retrospective look at the previous month, and therefore an already out of date view of a fast-moving market, the Fastest Selling Index provides the most up to date intelligence. The metric is based on analysis of over 1.9 million vehicles each day, including 90,000 vehicle updates and an average of 19,000 vehicles added or removed from Auto Trader. Coupled with data from circa 450,000 daily trade used car listings, as well as additional dealer forecourt and website data, it’s the most accurate reflection of the market.

Yorkshire 1 2016 Land Rover Discovery Sport auto diesel 2 2016 Mercedes-Benz A Class auto diesel 3 2016 Dacia Sandero Stepway manual petrol

East Midlands 1 2016 Mercedes-Benz A Class auto diesel 2 2016 Land Rover Discovery Sport auto diesel 3 2018 Hyundai Tucson manual petrol

East England 1 2015 SEAT Leon manual petrol 2 2016 Land Rover Discovery Sport auto diesel 3 2016 Ford Grand C-Max auto diesel

London 1 2016 BMW 2 Series Gran Tourer auto diesel 2 2016 Mercedes-Benz A class auto diesel 3 2016 Land Rover Discovery Sport auto diesel

South East 1 2016 Dacia Sandero Stepway manual petrol 2 2016 Land Rover Discovery Sport auto diesel 3 2016 Ford Kuga manual petrol

Retail rating

Days to sell

98.89 97.65 99.35

29 days 29 days 30 days

Retail rating

Days to sell

98.66 97.96 96.78

29 days 29 days 30 days

Retail rating

Days to sell

99.48 98.77 99.45

26 days 28 days 28 days

Retail rating

Days to sell

99.13 99.08 99.72

27 days 28 days 29 days

Retail rating

Days to sell

99.55 99.10 99.19

29 days 29 days 30 days

Industry partners.

Five-star suppliers

All dealers need trusted partners to help them survive and thrive. Here we CODEWEAVERS

Don’t live in the past – and don’t settle until you have achieved your goals! IT WAS great to win the Consumer Lead Generation Site of the Year Award at Car Dealer Power! We love what we do and it’s great to hear others do too! By working together with you, whether you are a retailer, manufacturer or finance provider, we can create innovative experiences that truly make a difference. It doesn’t matter what you are trying to achieve, whether it’s a full endto-end sales journey or you may just need help managing car finance, we are the experts in helping you reach your goals. It’s what we love doing, and the possibilities are endless. People come to us because they know we can help them and they find our products and platform pretty amazing.

We are all in it together. No matter how big or small your vision is, or what you are trying to achieve, the key to success is collaboration and teamwork. Collaboration happens every day and everywhere – there are many examples of powerful collaboration throughout history, in the worlds of music, fashion, science, business and politics (to name a few!). Think of Lewis and Clark, Laurel and Hardy, Benny and Björn… hopefully you’ll know some of these! We take a fully collaborative approach to clearly define the problems that you and your customers face and find a solution that really works for you. We make sure that you get the right product, rather than what you thought you needed. We help to bring together the

right skills, visions and resources to get things done when others can’t! By constantly talking and keeping everyone in the loop we can shape the solution around your needs. As a technology company, we see the speed and pace of change as an opportunity, not a threat. We want to be on our toes and innovating continuously. This is why we offer short-term contracts. The future is fast approaching – don’t live in the past and don’t settle until you have achieved your goals. Be the best you possibly can be and, most importantly, be ready, be adaptable and be future-thinking. Be the disruptor. Let’s make this happen together through the power of collaboration.

| Email: contactus@codeweavers.net |

67 DEGREES

Award-winners work very hard to give dealers exactly what they want COMPARED to some website providers, 67 Degrees is a relatively new kid on the block – but it has wasted no time in making plenty of friends in the automotive industry. The Brighton-based company has just picked up its second Car Dealer Power award after being named the best website provider for independent dealers for the second year – and naturally the team are delighted. We caught up with marketing manager Stuart Harvey, who told us: ‘Winning any award is always great but winning at Car Dealer Power is that little bit more special because the award is earned off the back of dealer votes and feedback. It’s always great to be liked and it was humbling to hear the feedback read aloud

to the room. It’s also fantastic to retain our award for the second consecutive year.’ Asked why he thought 67 Degrees was so highly regarded, Harvey told us: ‘I think it’s our approach. We don’t do the hard sell and always try to take a consultative approach. Couple this with our hands-on style of customer care and our service is among the best in the industry. ‘At 67 Degrees we all work exceptionally hard to give our dealers exactly what they want. We spend a considerable amount of time getting to know our dealers and the way that their businesses operate. We also appreciate that running a dealership is an intensive task so we try to work as flexibly as possible. ‘A core part of this is having a WhatsApp

group with each of our dealers, as this gives them the opportunity to ask questions or request changes at their leisure.’ 67 Degrees is in tune with the needs of dealers, largely thanks to the fact that so many members of the team are very experienced in the automotive industry. ‘Absolutely,’ confirmed Harvey. ‘Most of us have only ever worked with the motor trade. This background allows us to tailor our services accordingly.’ And finally there was a note of gratitude after another triumph at Car Dealer Power. Harvey said: ‘We’d like to say a huge thankyou to every one of our dealers for trusting us with their brand and to everyone in the industry who has supported our journey so far.’

| Contact 67 Degrees on 01273 388086 or go online to 67degrees.co.uk | 56 | CarDealerMag.co.uk

Leading the way in plugging the gaps.

Sliding Doors, p69

talk to four Car Dealer Power winners you should be working with . . . CLOSE BROTHERS MOTOR FINANCE

Are we a company that’s easy to do business with? Absolutely! THE team at Close Brothers Motor Finance were delighted to win the Finance Provider of the Year (Prime) trophy at Car Dealer Power. It’s a business that works extremely hard to keep three important groups of people happy: the colleagues who work there; their dealer partners; and those dealers’ customers. Sean Kemple, director of sales, described the Car Dealer Power triumph as ‘extra special’ because it was voted for by the readers of Car Dealer and explained: ‘We have a 115-strong field team working with our dealer partners. ‘We understand them and we like to believe we speak their language. We’re delighted that they voted for us in such large numbers.’ Kemple explained that Close Brothers Motor

Finance focuses on four pillars as far as dealers are concerned. He said: ‘The first is finance support: positioning point-of-sale finance effectively and from a TCF perspective, making sure customers are aware of their options. ‘We also support dealers with compliance and FCA applications, and the third area is around forecourt funding. The fourth area is insight – we try to keep our insight as straightforward as we can and make it ‘‘actionable’’ insight. A lot of people are delivering insight these days but the difference with us is that we advise people how they can act on it to improve their business. ‘They’re the key areas we’ve been working on – and our success at Car Dealer Power would seem to show they’re having an impact.’

Close Brothers Motor Finance also goes the extra mile to make sure car buyers are happy. ‘From the customer perspective, when they interact with us we want to make it as easy and as seamless a journey as possible,’ Kemple told Car Dealer. ‘It’s all about ease. Are we an easy company to do business with? Absolutely.’ The company can point to a very high score of 89 in the NetEasy customer satisfaction metric – which is incredibly positive given that the range of possible rankings extends from minus 100 to plus 100. ‘And we live by a simple mantra: happy colleagues equals happy partners equals happy customers.’ It’s an approach to business that is certainly bearing fruit!

| For more information, go online to closemotorfinance.co.uk/funding |

WHAT CAR?

We may be just a year old – but join us and watch your new car sales grow! WHAT Car?’s New Car Buying service is a relatively new kid on the block as far as new car sales are concerned – but there’s no doubt about its popularity with some of the UK’s bestknown dealer groups. Over the past 12 months, companies including Lookers, Swansway and Vertu have all been using What Car?’s New Car Buying service, and the results have been so positive that it won the Online Advertiser for New Cars trophy at this year’s Car Dealer Power awards. Confidentiality rules around voting prohibit us revealing the identity of those who make comments in the survey, but here are three examples of positive feedback: l ‘A great brand and trusted by consumers.’

l ‘They deliver more leads than some other online car sales platforms.’ l ‘Great service and not overpriced.’ We caught up with Paul Shoesmith, commercial director of What Car?, who was thrilled with the platform’s success, especially as it has been operational for little over a year. Asked why he thought dealers voted for What Car? in such large numbers, he replied: ‘Unlike some rivals, we’re not about a race to the bottom on price, because What Car?’s Target Price is at the heart of our offering. ‘Target Price is a fair price – for the car buyer and the car dealer – with the goal of establishing a productive ongoing relationship between both sides after the sale at its heart.

‘Couple that to the fact that the What Car? brand has credibility in both the consumer and trade marketplaces, and you have a huge audience of highly informed car buyers who are ready to engage and buy from retailers at this fair price. The number, breadth and – above all – quality of leads we generate is very wide. ‘Then, from the other side we have a highly engaged team of people working at What Car? to support the product. Our heritage in this market space means that we aren’t interested in chasing flash-in-the-pan success; we have to build long-term relationships with retailers and really prove our value to them. ‘We’re here to stay and delighted that our efforts so far have been recognised so soon.’

| For more information, go to whatcar.com/increasemysales | CarDealerMag.co.uk | 57

58 | CarDealerMag.co.uk

Focus on. Customer review platforms Featured suppliers Trustpilot Why Trustpilot is the go-to customer review platform for dealers. W: marketing.trustpilot.com/ cardealermagazine P T: 020 3871 0748 E: nba@trustpilot.com (Neil Bayton)

JudgeService Improving the customer experience is the driving force at JudgeService.

The social proof that car buyers truly value Act genuinely, do the best you can for your customers online, and you and your business will soon reap the benefits, says Trustpilot.

ord of mouth used to be key to a dealer’s reputation, but these days the internet gives customers the opportunity to voice their opinions far and wide. A reputation carefully built up over the years can be rapidly undone through a lack of understanding on how to respond to negative feedback, or not using platforms that are actively tackling the issue of fake reviews. In this special section of Car Dealer Magazine, we look at what platforms consumers are using and how dealers need to engage with them. Trustpilot, which is one of those featured, surely needs no introduction. Its very name provides a calming reassurance amid all the internet ‘noise’, with its star ratings and reviews giving potential customers an honest appraisal of a company. Neil Bayton, the company’s head of partnerships UK, highlighted the benefits of its ‘community approach’. ‘Trustpilot allows people who might be buying their next car to quickly understand the quality of the experience they’ll be getting from others who have already been through the process. People really trust and value this social proof. It saves time when they’re trying to get the best possible deal, a better product, or a better service.’

by JOHN BOWMAN john@blackballmedia.co.uk

It’s therefore a quick and easy way to get customers into showrooms and buying cars. Online reviews are certainly becoming increasingly important. ‘We’ve done some research that shows that in 10 years’ time, 20 per cent of millennials will be happy to buy a car completely online. That’s a lot of people and means that reviews – real people’s opinions and real experiences – are only going to become more important,’ Bayton pointed out. The way people buy cars and research buying cars has changed massively, so dealers need to get their reputation where people can find them and Trustpilot – as the UK’s 29th most visited website – is one of the most important platforms imaginable, with its reviews a fundamental part of that decision-making process. Fake reviews are a sad fact of life, but Trustpilot works extremely hard to safeguard against them – as described overleaf – and has top advice for dealing with criticism and poor feedback too. ‘The number one piece of advice I’d give to car dealers on managing their online reputation is to respond to negative reviews,’ said Bayton.

W: judgeservice.com T: 01423 225166

P63

Other suppliers Pix Review W: www.pixreview.com T: 0121 667 1274 Reputation.com W: reputation.com T: 0800 066 4781 Reviews.io W: reviews.co.uk T: 0116 350 0610 ‘We recommend that all businesses engage with their clients. Who better to learn from and improve your business than your existing clients? Even though three stars is ambivalent, we’d still recommend that you respond to a three-star, a two-star and a one-star review.’ Do it quickly, too. ‘The more responsive you are the better. The expectation from the consumers is to get a response within 48 hours, but the quicker you are, the more opportunity you have to beat your customer’s expectations and always keep the conversation constructive and positive. ‘We encourage businesses to be as transparent as possible, especially when you receive a negative review. Every business has the ability to respond to reviews openly on Trustpilot. Nobody is completely perfect, and consumers don’t expect you to be, but what they do want to see when they’re looking at your negative reviews, is that you’ve tried to help to fix the issue. ‘The more potential customers can see that you’re acting genuinely and are doing the best you can, the more you’ll be seen as a trusted dealership to do business with.’ CarDealerMag.co.uk | 59

Fuel your business with trust

Start a conversation with your customers on the worldâ&#x20AC;&#x2122;s most powerful review platform.

Start a conversation with your customers on business.trustpilot.com 60 | CarDealerMag.co.uk

Focus on. Customer review platforms

Trusted information at buyers’ fingertips TRUSTPILOT

W: marketing.trustpilot.com/cardealermagazine T: 020 3871 0748

n today’s fast-paced online world, it’s important for car dealers to have the edge in converting browsers into buyers – and nothing plays a bigger part in doing that than reviews. Customers want information at their fingertips and there’s certainly plenty of it around. So it’s just as important that they can trust that information – which is why Trustpilot is the go-to customer review platform for dealers. As founder and chief executive Peter Holten Mühlmann says, ‘More than just a rating, Trustpilot stars signify that a company has nothing to hide, loves its customers and shares our mission to create ever-improving experiences for everyone.’ Expanding on the theme, Neil Bayton, Trustpilot’s head of partnerships UK, said: ‘We’re very proud of our reputation and the quality of the reviews held on the platform, and that’s one of our main selling points. Customers recognise us as the best place they can get authentic opinions of over 300,000 businesses globally.’ So, what are the benefits of Trustpilot for dealers? What can it offer them and why should they sign up? ‘Online car sales are increasing and consumers are now online researching their next car purchase. All this happens before they even set foot in a physical dealership,’ said Bayton. ‘Trustpilot provides a place for customers to see the great service you offer through the trusted eyes of other consumers. ‘Reviews are a great way to show that you care about your customers and that you’re actively listening and engaging with them. The more trusted you are, the more you’re likely to sell.’ Established in 2007, Trustpilot has grown to become the world’s most powerful review platform with a fantastic reputation – and there’s

‘Trustpilot stars signify that a company shares our mission to create ever-improving experiences for everyone.’

More than 90 per cent of people read reviews before making a purchase, says Neil Bayton, above a very good reason for that: its rigorous and robust approach to openness and transparency. There’s a lot of talk these days about fake news and reviews, but Trustpilot safeguards against that. ‘Upholding the integrity of Trustpilot is vitally important to us and we work extremely hard and invest heavily to combat any misuse of our review platform. We have lots of different measures to ensure that the reviews posted on our platform reflect genuine buying or service experiences,’ said Bayton. That includes specialist software to identify and remove fakes, as well as a dedicated team of experts who investigate and uphold the platform – but Trustpilot’s community ethos is the very heartbeat of the platform, emphasising the probity of the reviews that it carries. ‘We know that 92 per cent of people read reviews before making a purchase,’ said Bayton. ‘It influences their decision, and we take that very seriously. That’s why on the consumer side they need to know that our reviews are real and that they can trust them, and they can part with their money based upon the reviews that they read. ‘It’s also important on the car dealer’s side. The real value of Trustpilot is the fact that we’re a consumer brand and we don’t sit within one vertical, especially with buying a car. You might only buy a car every three to five years, but consumers are familiar with the Trustpilot brand through various touchpoints and services they use every day. Having a recognised and familiar symbol next to your car dealership provides greater credibility and trust in your business.’

Strength of numbers also makes a compelling case for signing up with Trustpilot. ‘Trustpilot is a destination site for consumers,’ said Bayton. ‘But I’m not going to pretend that all of our traffic comes from people going direct to Trustpilot. ‘What typically happens is a brand search in Google. Now, with Trustpilot being the 29th mostvisited site in the UK, we get a lot of ‘‘Google juice’’ – for want of a better expression – so car dealers’ profile pages on Trustpilot are very highly ranked. Their Trustpilot profile page will be ranked higher than their own site, so typically what we’re seeing is their Trustpilot reviews are very prominent in the new way people are researching to buy a car.’ Bayton continues: ‘Take the example of a customer looking to purchase a Ford Focus. They have found two different cars in different locations. One is five miles away and the other is six miles away. They’re both around the same price, but one is showcasing 300 Trustpilot reviews – and they’re not all five stars, some are three stars – and the other one just shows maybe one or two reviews from elsewhere. ‘The social-proof element of the 300 reviews is going to be what convinces that person to visit that car dealer. Other people have been on that buying journey and it convinces the customer that you have a great reputation.’ Nowadays, people will, on average, visit 1.2 dealerships rather than the five or so that they used to before the internet came along. With Trustpilot on your side, you can help make sure it’s yours they end up in. CarDealerMag.co.uk | 61

Make your customer

ACTION PACKED INSIGHT

REAL REVIEWS

STAR RANKINGS

Your route to raving fans

support@judgeservice.com

62 | CarDealerMag.co.uk

01423 225 166

business.judgeservice.com

Focus on. Customer review platforms

Sell more cars to your satisfied customers JUDGESERVICE

E: support@judgeservice.com T: 01423 225166

l Find out what your customers really think about your sales team. l Improving the customer experience is the driving force at JudgeService. l Great reviews and star rankings are a welcome spin-off.

nline reviews and comments are more important now than ever – after all, what business wouldn’t welcome a five-star write-up from a satisfied customer? After almost 10 years in business, JudgeService, arguably the UK’s most effective online review provider, knows that these are just the tip of the iceberg, however. Car Dealer recently caught up with Neil Addley, founder of JudgeService, to get his take on customer satisfaction and reviews. Firstly, we asked him to outline what he sees as the difference between JudgeService and other review providers. ‘Three things, I think,’ he replied. ‘Firstly, we are automotive specialists. That means we ask questions in our insight surveys that allow a dealer to see how individual sites or salespeople are performing. Secondly, we’re all about improving the customer experience, not just getting good reviews. Finally, our account managers provide one-toone support to our clients and any one of them can pick up the phone to me with a new idea or suggestion at any time.’ JudgeService, based in Harrogate, North Yorkshire, is nine years old. We asked Addley what he’d learnt over that time. ‘You’ve got to keep innovating,’ he said. ’When we started, smartphones were scarce; now, over half our surveys are completed on mobile. ‘Even the ways people buy – or finance – vehicles has changed over that period. ‘Also, although it seems obvious, look after your people. If you create the right environment for your team, they’ll naturally deliver the best service possible to your clients.’ JudgeService offers a wide spectrum of customer insight and review services to its clients: l Reputation Manager offers a dashboard that allows you to see all online reviews in one place and reply to Google and Facebook reviews from that dashboard. l ProAct uses JudgeService’s contact centre to call lost sales customers and get insight at the

The best salespeople are worth thousands of pounds in terms of much quicker stock turn, says Neil Addley, above

same time as turning them into hot leads. l Snap n Share allows your customers to celebrate a vehicle handover with pictures they can keep and share on social media. l ReAct, JudgeService’s core product, features a class-leading survey for used car, service, and repair customers that gives really useable insight into their experience. Were test drives offered? Was finance explained properly? Did the customer get on well with the member of your staff they were dealing with? What matters most? ‘We’ve found that there is a direct link between customer satisfaction and stock turn,’ says Addley. ‘We looked at our promoter scores and found that a 20 percentage point improvement in the score actually drives the speed cars are sold. A 20 percentage point increase in the promoter score improves the speed of selling a car by a whopping six days.’ When you drill into the data, the most important factor is the salesperson’s attitude,

followed by attitude at handover and then explanation of paperwork. A five percentage point improvement in any of these areas drives up the promoter score, which in turn shortens the time it takes to sell a vehicle. JudgeService data highlights the importance of recruiting and training the very best salespeople. In effect, the best salespeople are worth thousands of pounds in terms of much quicker stock turn. The JudgeService effect Finally, we asked Addley where he thought customer service and reviews were heading. ‘We’ve found that our clients’ customer service – and therefore stock turn – have genuinely improved over time. This isn’t a coincidence, it’s an action – a series of actions that make the world a better place, one customer at a time. ‘The future we see is one where genuine customer service overrides the pursuit of reviews for reviews’ sake. Consumers and colleagues are increasingly conscious of authentic feedback. ‘We see this going mobile, going beyond reviews and almost into gossip. What do your team hear from your customers? ‘By reflecting the customer’s views and integrations with CRM and DMS, customer service will continue to improve, protecting the sector from new entrants by delivering an outstanding experience.’ [CD] CarDealerMag.co.uk | 63

Ask the experts.

Six of the best: Top

News, updates and guidance from some of the companies WRITE-OFFS

SOFTWARE

MARKETING

Avoid fines and penalties and retain your reputation

Transform performance with digital documents

Use social media to give lead generation a boost

MOTORCHECK’S October audit examining the sale of undisclosed insurance write-offs has detected potential examples at more than 900 UK retailers. l How does this occur? It’s estimated that every year 100,000 insurance write-offs slip past the voluntary database relied on by popular provenance check providers HPI and Experian. This leaves dealers vulnerable to unknowingly purchasing or selling a previously damaged vehicle. The examples found are across the entire industry. Many are presented under the OEM’s ‘Premium Used’ brand and some even carry a thirdparty endorsement from the AA or RAC. l What does it mean for your business? Offering an insurance write-off for sale without the proper disclosure exposes a retailer to future fines or other penalties but may also result in significant damage to a dealer’s online reputation. l What protection can you put in place? MotorCheck has access to a database of more than 2.5 million previously damaged vehicles. We make the information available to retailers as part of our full provenance check service or via a standalone check called a ‘Condition Alert’ designed to supplement your current provider. Checks can be carried out individually by VRM, via Batch Upload or directly over a dedicated API.

AS profit margins are squeezed ever tighter and the compliance burden weighs heavy, increasing numbers of dealers are breaking away from traditional paper-based processes and reaping the benefits of digital document management. Leading automotive digital document solutions provider MotorDocs offers a suite of innovative products that are helping dealer teams work quicker, safer and smarter. Well established across the UK automotive retail network, its awardwinning iDealFile product seamlessly integrates with dealer management and third-party systems to turn manual paperbased documents into secure electronic digitally signed, visible, traceable and auditable data. The feature-rich product delivers time savings of between two and four hours per deal file and cash savings of at least £4 per deal file, thanks to reduced print, paper, storage and retrieval costs. Its new product – iServiceFile – has been specially designed by automotive aftersales experts and brings the benefits of digital document management to service and repair teams – with a focus on supporting more warranty approvals. Much more than document storage, these products offer a chance to unlock powerful business intelligence and improve efficiencies, compliance, profitability, customer experience and environmental impact.

THE biggest change that dealers can make to improve their business is embrace the lead-generation opportunities presented by social media, explains Jeremy Evans, managing director at Marketing Delivery. SocialStock is Marketing Delivery’s new online social media management and reporting platform. Developed specifically to make social media marketing simpler and more effective for motor retailers, the system takes a stock feed directly from a dealer’s website for use with email stock reminders and Facebook advertising. Using this feed, SocialStock then creates and automatically maintains a Facebook ‘product catalogue’ to be used in organic and paid-for adverts. Evans comments: ‘The system enables dealers to automatically populate Facebook adverts and Facebook Marketplace listings with vehicle inventory. ‘Not just a time-saver, this means dealers can use advanced social media tools to target relevant prospects, perhaps based on their location or browsing history.’ The platform is scalable, depending on dealer requirements, making it suitable for individual solus-brand sites, as well as large dealer groups. An automated system that requires minimal effort by sales teams, SocialStock can be used by dealers and groups to encourage prospective customers to visit (or revisit) their website, and generate real-time leads from Facebook.

Visit: https://partner.motorcheck.co.uk/ salvage-check/ Email: sales@motorcheck.co.uk Phone: 0330 331 0150

64 | CarDealerMag.co.uk

Contact Andy Mee on 01635 905985 or visit www.motordocs.co.uk

To find out more, contact Marketing Delivery on 01892 599911 or email get.in.touch@marketingdelivery.com

Are you prepared for a crisis in business?

Extra Cover, p78

suppliers at your service who do great work with dealerships of all shapes and sizes WARRANTIES

AUCTIONS

VALETING

Trust and impartiality underpin our product

Make more margin by reconditioning stock

The complete preparation solution for any dealership

USED car warranties come in all shapes and sizes, so it is critical you know how much time and money your warranty is costing you. l Financial cost vs return: Knowing exactly how much you spend compared with how much you claim back is a critical exercise you should do routinely. If you discover that you are claiming less than your outgoing premiums, then you should renegotiate tariffs with your supplier. After all, those unclaimed premiums are profiting their bottom line – not yours! l Time cost vs return: Calculate how much time you waste getting claims authorised and consider if it’s worth the premiums you pay – from registering claims, waiting for decisions, managing your customer and submitting photo-evidence to waiting while engineers audit your repairs. Unfortunately for dealers using traditional warranties, this time-consuming ordeal is part of the process, but at least knowing how much time you waste strengthens your hand when it comes to renegotiating premiums. l Done negotiating. Time to change? Switch to Crystal Clear Warranty. With no vested interest, our self-funded warranty is based on trust and impartiality and can easily replace your traditional warranty. Claims decisions are agreed within seconds, freeing up your precious time, and you also enjoy a 100 per cent profit return on all your expired warranty funding.

THE automotive industry has had its challenges for dealers in 2019. When it comes to sourcing used cars from auctions, there is less stock in the market and higher demand for what is available. At G3 we’ve seen attendances increase as dealers scramble for stock. As a used car dealer, how do you make sure you continue to make good margins when there are more bidders for the retail-ready stock at auction? The answer? Be more than SMART; partner with a good local bodyshop. Vehicles with damage get fewer bids, so find the gems that need the right amount of reconditioning. With mechanical reports, video appraisals and deeper investigations into service histories, it’s never been easier at an auction to find out what’s under the bonnet. The next step is to arrive early at the auction to research the physical condition of the vehicle. Identify which cars have isolated dents and large scratches in panels that can be lined up with your bodyshop partner to create retail-ready stock, often in less than a week. Then when it comes to bidding at auction, the likelihood is that you will have less competition to get it at a price that fits. With G3 you have the choice of thousands of used cars to bid on every month. From ex-rentals to part-exchanges, G3 is sure to have a vehicle to fit your stock profile.

APPROVED Valeting is a nationwide valeting preparation company that works with car dealerships throughout the UK. These include Sytner, Inchcape, Pendragon and Lookers to name just a few. The company can provide the complete valeting solution for any main dealership or car supermarket plus hire, import and auction centres. Having been established in 1994, the firm has 25 years’ experience in this market and the management team have over 100 years of experience! A company spokesman said: ‘At Approved Valeting, we provide trained and certified staff, equipment, chemicals, insurances and health and safety procedures to comply with your on-site requirements. ‘We can also provide certified staff to cover busy periods, overspill, holiday and absences. We have the ability, capacity, capability and coverage to supply any preparation package nationwide, irrespective of size. Approved Valeting can provide collection and delivery drivers for service or sales departments, with fully comprehensive insurance cover.’ So, providing highly trained valeters and detailers plus the use of Autoglym and Autosmart products and consumables, backed by an unrivalled knowledge from the management team, makes Approved Valeting the company to do business with. Get in touch today to find out more.

Find out more at www.warrantyadmin.co.uk or call 01522 515600.

Go online to: g3remarketing.co.uk Call: 0845 190 6363.

Call Approved Valeting on 0800 009 6866 or email info@approvedvaleting.co.uk

CarDealerMag.co.uk | 65

Data file.

Thestatistics

| SMMT SALES DATA | TAKING STOCK | CHALLENGES AHEAD

Moderate September growth – but underlying trend still downwards

he UK new car market fell by 2.5 per cent in the first threequarters of the year, according to figures released by the Society of Motor Manufacturers and Traders. September saw modest year-on-year growth following a substantial 20.5 per cent decline in the same month in 2018, when new emissions regulations and lack of testing capacity across Europe affected supply. The growth, representing some 4,421 units, wasn’t enough to recover losses of more than 87,000 in last year’s important plate-change month, however, leaving the year-to-date market trailing some 49,000 units behind this time in 2018. It is also in stark contrast to other major European markets, which this September rallied in double digits. While the same regulatory upheaval has been experienced across the EU, in the UK, the market is being subdued by the added pressure of political and economic uncertainty, with weak confidence stopping consumers from committing to big-ticket purchases, said the SMMT. September’s volumes were driven by the fleet sector, which grew by 8.6

per cent. Meanwhile, private demand remained stable, up 0.1 per cent, while business registrations sank by 44.8 per cent. Diesel registrations fell by 20.3 per cent, as petrols experienced a moderate increase of 4.5 per cent. There was good news for batteryelectric cars (BEVs), which saw the biggest percentage growth of all fuel types – up 236.4 per cent (5,414 units) as new models boosted registrations. Plug-in hybrids (PHEVs) also saw growth for the first time in six months – albeit on the back of a 22.3 per cent decline in the same month last year. Year-to-date PHEV registrations are now 6.2 per cent below the same period two years ago. By comparison, popular hybrid-electric and battery-electric cars are up 32.8 per cent and 125.6 per cent on the same period. Mike Hawes, SMMT chief executive, said: ‘September’s modest growth belies the ongoing downward trend we’ve seen over the past 30 months. ‘We expected to see a more significant increase in September, similar to those seen in France, Germany, Italy and Spain, given the negative effect WLTP had on all European markets last year.

‘Instead, consumer confidence is being undermined by political and economic uncertainty. ‘We need to restore stability to the market which means avoiding a “nodeal” Brexit and, moreover, agreeing a future relationship with the EU that avoids tariffs and barriers that could increase prices and reduce buyer choice.’ Ian Plummer, Auto Trader director, said: ‘The September and year-todate figures have been more positive than was expected but the natural slowdown of the market and continued Brexit anxiety will be weighing heavily on the minds of consumers, brands and retailers. ‘As they focus on hitting their annual targets, both manufacturers and retailers have been using tactics – such as selfregistrations – to artificially buoy the numbers and overstate the natural level of demand for new cars, because they just aren’t seeing the consumer demand to reach the figures they need to organically. ‘This push activity will almost certainly continue ahead of the Brexit deadline, as the industry prepares for whatever the 31st has in store.’

SMMT sales data Sept/year to date

Top

Most-improved manufacturers in September

Chevrolet +600% Bentley +194% Porsche +174% Alpine +120% Dacia +74%

Bottom

Worst-performing manufacturers in September

Smart -92% Infiniti -73% Mitsubishi -37% Subaru -36% Abarth -32%

Best-selling model puts Vauxhall on Corsa for success! VAUXHALL’S Corsa was the UK’s best-selling car in September, with 12,921 models sold. Through four generations, the Corsa has been a sales sensation, selling 2.1 million cars in the UK since 1993, whilst also proving popular in Europe with over 13.5 million sold. Later this year, the all-new Corsa arrives in a first-ever electric model, along with all-new, high-efficiency petrol and diesel versions. 66 | CarDealerMag.co.uk

Outperforming a declining market, Vauxhall’s 2019 yearto-date market share for cars and light commercial vehicles increased to 7.52 per cent. Vauxhall’s popular Mokka X SUV and range-topping Insignia both led their respective segments last month. In September, Vauxhall was the UK’s second best-selling van manufacturer. Vauxhall’s market share for LCV sales increased to 12.94 per cent versus 9.12 per cent in September 2018.

Jeep

Lexus

-10% September 2019 Marque

2019

+43%

September 2018

% market share

2018

% market share

Year-to-date (YTD) % change

2019

% market share

2018

% market share

% change

Abarth

662

0.19

987

0.29

-32.93

2,888

0.16

4,518

0.24

-36.08

Alfa Romeo

500

0.15

474

0.14

5.49

2,805

0.15

3,427

0.18

-18.15

Alpine Audi Bentley BMW

0.00

120.00

137

0.01

125

0.01

9.60

12,741

3.71

13,797

4.07

-7.65

113,254

6.08

124,101

6.49

-8.74

153

0.04

0.02

194.23

1,215

0.07

1,291

0.07

-5.89

27,834

8.11

27,940

8.25

-0.38

131,906

7.08

136,312

7.13

-3.23 106.67

0.00

600.00

0.00

Citroen

6,863

2.00

7,991

2.36

-14.12

42,518

2.28

41,455

2.17

2.56

Dacia

4,300

1.25

2,470

0.73

74.09

25,344

1.36

18,264

0.96

38.76

Chevrolet

556

0.16

416

0.12

33.65

2,842

0.15

4,616

0.24

-38.43

Fiat

4,765

1.39

5,851

1.73

-18.56

24,870

1.34

29,182

1.53

-14.78

Ford

32,522

9.47

33,326

9.84

-2.41

188,124

10.10

206,103

10.79

-8.72

Honda

5,535

1.61

7,271

2.15

-23.88

36,176

1.94

44,176

2.31

-18.11

Hyundai

14,418

4.20

16,102

4.75

-10.46

68,669

3.69

75,798

3.97

-9.41

Infiniti

0.00

0.01

-73.81

286

0.02

665

0.03

-56.99

Jaguar

6,052

1.76

7,047

2.08

-14.12

29,364

1.58

28,675

1.50

2.40 -0.43

779

0.23

867

0.26

-10.15

4,878

0.26

4,899

0.26

16,386

4.77

16,299

4.81

0.53

80,185

4.31

78,726

4.12

1.85

Land Rover

12,791

3.73

12,827

3.79

-0.28

60,713

3.26

60,304

3.16

0.68

Lexus

3,852

1.12

2,686

0.79

43.41

12,826

0.69

10,648

0.56

20.45

Lotus

0.01

-8.11

196

0.01

200

0.01

-2.00

Jeep Kia

0.03

130

0.04

-26.92

760

0.04

1,026

0.05

-25.93

7,600

2.21

6,704

1.98

13.37

33,324

1.79

32,696

1.71

1.92

30,398

8.86

30,161

8.90

0.79

140,484

7.54

137,766

7.21

1.97

1,363

0.40

1,010

0.30

34.95

9,352

0.50

6,695

0.35

39.69

Mini

12,691

3.70

10,082

2.98

25.88

50,743

2.72

49,425

2.59

2.67

Maserati Mazda Mercedes-Benz

2,017

0.59

3,233

0.95

-37.61

13,521

0.73

15,658

0.82

-13.65

Nissan

13,745

4.00

16,827

4.97

-18.32

75,007

4.03

85,200

4.46

-11.96

Peugeot

10,918

3.18

11,070

3.27

-1.37

64,536

3.47

65,586

3.43

-1.60

Porsche

1,792

0.52

654

0.19

174.01

10,000

0.54

10,633

0.56

-5.95

Renault

11,814

3.44

10,074

2.97

17.27

47,986

2.58

49,777

2.61

-3.60

Mitsubishi

Seat

8,216

2.39

5,281

1.56

55.58

54,995

2.95

50,490

2.64

8.92

Skoda

9,202

2.68

7,390

2.18

24.52

58,570

3.15

58,105

3.04

0.80

Smart

126

0.04

1,583

0.47

-92.04

3,868

0.21

6,226

0.33

-37.87

SsangYong

395

0.12

461

0.14

-14.32

1,646

0.09

2,280

0.12

-27.81

Subaru

526

0.15

829

0.24

-36.55

2,044

0.11

2,668

0.14

-23.39

Suzuki

3,812

1.11

3,031

0.89

25.77

29,731

1.60

32,350

1.69

-8.10

Toyota

17,858

5.20

19,091

5.63

-6.46

86,881

4.67

85,742

4.49

1.33

Vauxhall

27,403

7.98

28,847

8.51

-5.01

137,229

7.37

143,656

7.52

-4.47

Volkswagen

19,632

5.72

16,283

4.81

20.57

157,040

8.43

157,685

8.25

-0.41

Volvo

8,803

2.56

8,461

2.50

4.04

44,348

2.38

37,506

1.96

18.24

404

0.12

362

0.11

11.60

2,178

0.12

2,290

0.12

-4.89

3,673

1.07

782

0.23

369.69

8,770

0.47

3,845

0.20

128.09

1.30

1,862,271

Other British Other imports Total

343,255

338,834

1,910,820

-2.54 Figures supplied by SMMT

CarDealerMag.co.uk | 67

LCV news.

Fullyloaded

| LIGHT COMMERCIAL VEHICLES | FLEET | REVIEWS |

‘NEW PROPOSITION’

PEUGEOT

RAC launches dealer standard for used vans

Partner range grows with Crew Van model by JOHN BOWMAN john@blackballmedia.co.uk

THE launch of an RAC Approved Dealer standard for used vans and other light commercial vehicles creates a ‘new kind of proposition’ in the LCV sector. That’s the view of Sean Kent, RAC sales director at Assurant, the Fortune 500 company which partners with the RAC in providing and administering warranties and related resources. He said: ‘The new standard is designed to create a nationwide approved used van programme commensurate with the values of the RAC brand, with all of the benefits that brings for both customers and retailers. ‘It is very much a new kind of proposition in this sector where, outside of franchise dealer networks, there are few retailers with the kind of consumer brand recognition that we can deliver. With the RAC Approved Dealer initiative, dealers who meet our criteria can associate themselves directly with the credibility of the RAC brand, instantly differentiating themselves from their competitors. ‘Our research shows that customers who buy from used car retailers that are members of the RAC Approved Dealer Network often do so because of the presence of the brand – and we anticipate it will also be a major strength in the van sector.’ All types of van dealers can become RAC Approved Dealers. 68 | CarDealerMag.co.uk

eugeot has extended the range of its all-new Partner, hailed as International Van of the Year 2019, to include a Crew Van model based on the Long Professional version. The Partner Crew Van will add a second row of three seats, cleverly integrated with a sliding and folding mesh bulkhead to offer a vehicle that has a flexible space for up to five people or additional load capacity. The Partner Crew Van offers a conventional van load area with the rear seats folded down, providing a load space of up to 3.5 cubic metres and a maximum load floor length of two metres. This can be extended further to 3,050mm by folding the front passenger seat down to form an extension of the load floor and using the through-loading hatch in the mesh bulkhead for longer items. This increases the overall loadspace size to four cubic metres. With the rear seats in use, the Partner Crew Van provides a 1.8-cubic metre load space with a maximum load floor length of

1,450mm. It also has a maximum gross payload of 850kg. The Partner Crew Van is based on the Partner Van Professional, with equipment including air conditioning, rear parking sensors, cruise control with variable speed limiter, an alarm, one-touch electric windows, DAB radio, Apple CarPlay and Android Auto. It is expected to appeal to van users who regularly transport crew

Top-selling LCVs in September Ford Transit Custom Vauxhall Vivaro Ford Ranger Peugeot Partner Ford Transit Connect

5,653 2,827 2,377 2,350 2,304

and equipment to work sites and others who need the flexibility of a dual-purpose vehicle. Three power options are available: PureTech 110 six-speed manual, BlueHDi 100 five-speed manual and BlueHDi 130 EAT8 eight-speed automatic. Prices start from £21,140 (exc VAT) for the PureTech 110 variant, and the van is available to order now, with production starting in January 2020.

Source: SMMT

Mercedes-Benz Sprinter 2,095 Vauxhall Combo 2,093 Citroen Berlingo 2,064 Ford Transit 1,939 VW Transporter 1,744 LCV registrations, p70

‘It’s offered in three grades, which are better equipped than the standard Transit van.’ Ted Welford is in the plug-in hybrid Ford Transit Custom, p71

Sliding doors WITH CRAIG CHEETHAM

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

Everyone’s a winner when it comes to filling gaps as CV sector leads way

hen it comes to developing skills and creating new careers, other areas of British industry would do well to take a leaf out of the commercial vehicle sector’s book. Across the entire logistics business, from van manufacturing to drivers, mechanics and even sales staff, there’s a huge focus on filling gaps and helping the industry grow, even as we head into uncertain (and uncharted) economic times. Indeed, in periods of austerity, it’s areas such as the van market that people are turning to, thanks to its general security. No matter what’s going on in the wider world, people will always want and need things, so vans and trucks will keep on running and drivers will be required to keep delivering goods. The government has done a lot of questionable things recently, but one thing it has done well is to pledge £1 million to support Road To Logistics – a not-for-profit scheme jointly founded by the Road Haulage Association and telematics company Microlise. I have a lot of respect for it, as not only does it support the van and truck industry, but it gives opportunities to people who may struggle to find them elsewhere. The scheme aims to address staffing shortages across the whole of the logistics industry by creating training and development opportunities for retiring or discharged military personnel, ex-offenders, the long-term unemployed and individuals from disadvantaged backgrounds. Following a successful trial with HM Prison Sudbury and other jails across the UK, Road To Logistics aims to train up to 300 exprisoners in its first year, encouraging them to learn how to drive trucks and vans as well as operate and maintain them. It’s a selective scheme, so the criminal records of those involved are vetted and there’s minimal risk to the public. Ex-offenders are also increasingly common at dealership level, with a number of schemes in place to provide valuable support.

We know of one dealership group that employs a number of them via a locally-run scheme set up to combat anti-social behaviour. The idea is that young people stay out of trouble because they’re too busy learning while developing new work and social skills. It’s brilliant stuff, because not only does it help fill a skills gap in the commercial vehicle industry, it also gives openings to disadvantaged youths who may not have found such opportunities elsewhere. Meanwhile, another company that deserves recognition is SHB Vehicle Hire. It recently introduced a three-year ProVQ-supported apprenticeship designed specifically for military veterans, which concludes with a qualification as a light vehicle technician – a skill that can then be taken anywhere across the automotive industry. An equally commendable approach is that of Mission Automotive, run by Mission Motorsport, the forces’ motorsport charity. The initiative aims to help veterans find work, giving the industry a new pool of talent to hire from, by matching skills gained during military service to relevant automotive industry sectors. Mission Automotive says this will be increasingly relevant as the industry moves to electrification, because many ex-forces personnel have experience of dealing with high-voltage systems and technology. And vans, as we know, are the pioneers of EV technology. Mission Motorsport chief executive James Cameron said: ‘Our servicemen and women are a national resource and have much to offer to society beyond their military service.’ Cameron’s views are echoed by the UK’s largest motor industry body, which also sees ex-services personnel as invaluable. SMMT chief executive Mike Hawes said: ‘The automotive industry is changing rapidly and we need talent to address some critical skills gaps. Ex-military personnel can provide some of these in-demand skills and the industry can provide them with a new career path.’ So, a bit of good news amid a sea of uncertainty. Vans are delivering – in more ways than one.

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 | 69

LCV news. SEPTEMBER REGISTRATIONS

Regulatory changes plus uncertainties take their toll THE UK new light commercial vehicle market plummeted by 23.5 per cent in September, according to the SMMT. A total of 41,216 LCVs were registered in the month, down some 12,632 units on September 2018, as regulatory changes coupled with uncertainty affected the market. Registrations of

vans weighing 2.5 to 3.5 tonnes fell by 35.2 per cent in the month, while conversely, the market for vans weighing less than two tonnes was up 12.3 per cent. Vans weighing 2.0-2.5 tonnes were also up (by 16.8 per cent). Mike Hawes, SMMT chief executive, said: ‘These figures are unusual as LCV registrations have been growing this year,

but the impact of regulatory changes, coupled with ongoing political and economic uncertainty, distorted the market in September. Registrations for the year-to-date are still healthy, however, but for this to be maintained we need stability restored, which should give renewed confidence to businesses to invest in their fleets.’

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

2019

% market share

September 2018 2018

% market share

Figures supplied by SMMT

Year-to-date (YTD) % change

2019

% market share

2018

% market share

% change

12,934

31.38

20,230

37.57

-36.07

95,018

33.15

98,419

35.89

-3.46

5,479

13.29

5,049

9.38

8.52

24,652

8.60

20,746

7.56

18.83

Peugeot

4,339

10.53

4,062

7.54

6.82

25,704

8.97

27,126

9.89

-5.24

Citroen

4,080

9.90

3,238

6.01

26.00

22,477

7.84

20,541

7.49

9.43

Volkswagen

3,497

8.48

6,039

11.21

-42.09

31,780

11.09

32,511

11.85

-2.25

Mercedes

2,696

6.54

4,902

9.10

-45.00

28,862

10.07

20,317

7.41

42.06

Nissan

2,168

5.26

2,142

3.98

1.21

10,030

3.50

10,525

3.84

-4.70

Mitsubishi

1,557

3.78

1,743

3.24

-10.67

8,866

3.09

8,178

2.98

8.41

Toyota

1,172

2.84

1,679

3.12

-30.20

6,149

2.15

7,885

2.88

-22.02 33.31

Ford Vauxhall

Renault

896

2.17

1,883

3.50

-52.42

15,081

5.26

11,313

4.13

Fiat

804

1.95

1,110

2.06

-27.57

7,252

2.53

6,755

2.46

7.36

Isuzu

745

1.81

890

1.65

-16.29

3,726

1.30

3,797

1.38

-1.87

Iveco

183

0.44

203

0.38

-9.85

1,994

0.70

2,232

0.81

-10.66

Land Rover

152

0.37

236

0.44

-35.59

1,066

0.37

1,015

0.37

5.02

Renault Trucks

143

0.35

117

0.22

22.22

1,056

0.37

1,098

0.40

-3.83

Isuzu Trucks

114

0.28

0.15

44.30

650

0.23

485

0.18

34.02

SsangYong

0.19

0.14

2.67

510

0.18

277

0.10

84.12

MAN

0.18

0.12

22.58

1,050

0.37

443

0.16

137.02

LDV

0.16

0.11

17.24

465

0.16

349

0.13

33.24

Fuso

0.06

0.03

27.78

151

0.05

118

0.04

27.97

Hyundai

0.03

0.02

44.44

0.03

0.01

126.47

Dacia

0.00

0.04

0.00

0.03

0.00

41,216

100.00

53,848

100.00

-23.46

286,616

100.00

274,247

100.00

4.51

Great Wall Total light CV

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

2019

% market share

September 2018 2018

% market share

Figures supplied by SMMT

Year-to-date (YTD) % change

2019

% market share

2018

% market share

% change

1,624

23.02

-65.27

13.70

564

9.40

32.39

-9.04

1,844

30.74

2,187

30.99

-15.68

12.75

59.26

1,281

21.36

1,295

18.35

-1.08

154

14.54

-6.49

1,455

24.26

1,403

19.88

3.71

3.61

1.23

223.08

171

2.85

1.25

94.32

2.23

2.93

-16.13

364

6.07

259

3.67

40.54

Volkswagen

0.34

0.38

0.00

1.00

0.72

17.65

Renault

0.34

0.85

-55.56

0.88

0.84

-10.17

MAN

0.17

0.28

-33.33

1.05

0.24

270.59

Vauxhall

0.09

0.00

123

2.05

0.88

98.39

Isuzu Trucks

0.00

0.09

0.00

0.22

0.13

44.44

Renault Trucks

0.00

0.08

0.03

150.00

Nissan

0.00

0.03

0.00

1,165

100.00

1,059

100.00

10.01

5,998

100.00

7,056

100.00

-14.99

Ford

415

35.62

365

34.47

Peugeot

312

26.78

343

Mercedes

215

18.45

135

Fiat

144

12.36

Citroen

Iveco

Total heavy CV

70 | CarDealerMag.co.uk

FIRST DRIVE

Ford Transit Custom PHEV

THE KNOWLEDGE

Ted Welford went to Sweden to test the electric potential of the Blue Oval’s plug-in hybrid van – the first to get to market What is it? Ford has been slow to develop and launch any electrified offerings (across both cars and vans) but that’s all about to change with its first plug-in hybrid electric vehicle (PHEV) – a revised version of the best-selling Transit Custom.

models. The only thing with the system is that once the electricity runs out, the petrol engine is too small and underpowered to move something of this size – leading to a rather unrefined drone from the one-speed automatic gearbox as you get up to speed.

What’s new? This is also the first plug-in hybrid van on sale – just beating the LEVC LCV to market. Other than the powertrain, there isn’t much different about this Transit, apart from the charging flap in the front bumper and revised dials and eco switches in the cabin.

How does it look? Aside from the charging flap in the front bumper, which could look like a massive tow hook, the plug-in hybrid Transit looks identical to the standard van. That’s no bad thing, as the Transit is arguably one of the most stylish vans in its class – more so when you pick the range-topping Limited version, which brings car-like looks thanks to 16-inch alloy wheels, body-coloured door handles and bumpers, as well as stylish LED daytime running lights – similar to those fitted to the Fiesta.

What’s the spec like? The standard Transit range starts from £22,840, but the equivalent version to the PHEV costs from £26,490. So, what about the PHEV itself? Well, that will set you back £39,145, although Ford says it should hold its value far better. It’s offered in three grades, which admittedly are better equipped than the standard van. The entrylevel Leader comes with Bluetooth, electric front windows and airconditioning. Trend brings a leather steering wheel, front and rear parking sensors and automatic lights and wipers, with the range-topping Limited version adding heated front seats, 16-inch alloy wheels and body-coloured bumpers to get rid of the classic cladding.

What’s it like inside? The ‘hardly unchanged’ appearance continues to the cabin, although look closely and you’ll spot a few EV-specific details. For example, when you look at the dials, a gauge has replaced the rev counter to show when the van is either charging or using the engine, along with clear indicators of how

What do the press think? Auto Express said: ‘The Transit Custom can offer a usable all-electric range that’s bound to interest urban van drivers and fleet owners.’ Parkers said: ‘If you need an electric-capable van that demands very few compromises right now, this is an excellent solution.’

What’s under the bonnet? The powertrain sees Ford’s popular 1.0-litre EcoBoost petrol engine paired with a 92.9kW electric motor and a 13.6kWh electric motor to produce a combined 124bhp and 355Nm of torque. The claimed range of 35 miles is ideal for city use, but in our mix of driving, we found the electricity ran dry well ahead of Ford’s predictions. What’s it like to drive? It’s amazing just how easy this plug-in hybrid Transit is to drive, and it will likely be a pleasant surprise to those used to diesel-powered

Ford Transit Custom Plug-in Hybrid Price (as tested): £42,950 (exc VAT) Engine: 1.0-litre turbocharged petrol engine + electric motor Power: 124bhp Torque: 355Nm Max speed: 74mph 0-60mph: N/A MPG (combined): 91.7 Emissions: 70g/km CO2 Model:

many miles of electric range is left, alongside the overall range.

TARGET BUYERS: Van drivers who spend a lot of time in the city, but worry about running out of range. THE RIVALS: Nissan e-NV200, Renault Kangoo Z.E. 33, Peugeot Partner Electric KEY SELLING POINTS: 1. Easy to drive. 2. Electric-only range is ideal for city use. 3. Same practicality as a diesel Transit. DEAL CLINCHER: Zero-emission ability when driving through city centres.

What do we think? It could be ideal for businesses needing to do that mix of rural and urban driving while wanting to ensure they can save the electricity for when they get to the city. The high list price next to the diesel model is the elephant in the room that could prohibit many from switching to an electrified powertrain, but this is a great addition to the Transit line-up and offers a further option to those looking to cut their carbon footprint. CarDealerMag.co.uk | 71

Workshop.

Aftermarket

SERVICING & REPAIRS | PRODUCT NEWS | PEOPLE & PLACES

RESEARCH

Remote approval preferred by most

ACTIVATE GROUP LTD

Flagship body shop is first of five new sites by JOHN BOWMAN john@blackballmedia.co.uk

NEARLY two-thirds of UK drivers prefer to approve repair work remotely, according to new research by CitNOW. Convenience is a priority for most drivers when dealing with workshops, with 65 per cent of motorists preferring to approve repair work remotely, as services such as personalised video help build transparency into the customer journey. CitNOW, which pioneered automotive video, found that nearly a quarter (22 per cent) of motorists give the green light for work online or via instant messaging. The study follows its Evolution of the Car Buyer report, which polled 1,000 UK customers to examine how car-buying and servicing habits could change in the near future. Ollie Parsons, head of sales and client services, said: ‘With people so time-poor, building a convenient customer journey by helping people book or approve work remotely – whether over the phone or online – will reap the rewards.’ He added: ‘That convenience can’t come at the expense of trust or repair quality, which is why personalised video has been so successful, combining ease of use with transparency. ‘It can put workshop customers at ease, reassuring them that repair work is necessary and up to standard.’ 72 | CarDealerMag.co.uk

ctivate Group Ltd has opened a flagship accident repair body shop in Birmingham – the first of five sites in a new division representing a £6m investment over 12 months. AGL, founded in 2015, specialises in accident management services and partners with some of the country’s best-known fleet providers and insurers to service thousands of claims a year. The new division is part of a growth plan that aims to meet demand for high-quality repair centres in historically underserved urban areas. Chief executive Hannah Wilcox said: ‘We launched to the industry with an exclusive event for more than 50 customers and showcased the first Activate Accident Repair body shop with tours and a series of process demonstrations. Feedback has been amazing, and our customers seem as excited as we are about the direction we are taking.’ The Birmingham facility is housed in a purposedesigned 18,000 sq ft site able to repair up to 16 vehicles a day. A further four 15,000 sq ft sites are being developed and will be able to process up to 12 vehicles per day each. Once all five are up and running, volume is anticipated to achieve 16,000+ repairs per annum. All Activate Accident Repair centres will be equipped with the latest technology, including the ability to repair structural composite materials, all safety features, EVs and HEVs. Every site will also have a fast-track repair lane for non-structural repairs to reduce key-to-key times on smaller jobs. In addition, Activate Accident Repair is investing in reflecting the customer experience of the brands

Shane Maybank, MD of Activate Accident Repair, left, with CEO Hannah Wilcox and Mark Wilcox, chairman it represents: there are comfortable, well designed customer waiting areas, courtesy cars, high-spec valeting and well-trained staff on hand to provide assistance. The new division sees the creation of more than 200 jobs and the introduction of an apprentice programme next year that will see Activate Accident Repair develop fresh talent and equip people with the skills needed to excel in the industry. The new division is led by managing director Shane Maybank, who said: ‘Work is well under way on the Glasgow and Leeds centres, which we expect to have operational before the end of the year. ‘And in 2020, we’ll complete work on the final two sites in this tranche of development. The level of investment in both operations and people at Activate Accident Repair is second to none.’

The drivers who wait far too long to fix car faults MORE than half of British drivers wait more than two months before getting faults with their car fixed, a new survey has revealed. The poll of 2,020 drivers revealed that not only do motorists put off repairs for two months, but also showed that over half couldn’t change a tyre if they needed to. In fact, 14 per cent of those questioned only fix faults when it’s urgent, while more than a quarter don’t know

how to check the oil. Of the MOT tests taken this year, one third were fails while one in 10 was because of dangerous faults. And yet, despite motorists agreeing that repair costs could be cheaper if addressed earlier, UK drivers spend £574.50 a year on repairs. Lucy Davies at Green Flag, which commissioned the survey, said UK drivers should not underestimate the importance of proper car care.

Andrew Gilmore, left, Charles Hurst aftersales operations director, with James Thompson, manager of the Sydenham Fast Fit branch

NATIONAL AUTO PARTS

Braking news: New hose range on sale NATIONAL Auto Parts has announced the launch of its new brake hose range. This initial launch consists of a range of 100 part numbers, covering the top-selling hoses within the UK and Ireland, and vehicle applications covering some of the world’s most popular makes and models. Each brake hose is precision engineered to ensure exact fitting, either meeting or exceeding DOT, Federal Motor Vehicle Safety Standards (FMVSS 106) and SAE J1401 standards. Brackets, grommets, moulded plastic guards, wire clips and protective sleeves are also included as required. All tubing is manufactured

from high-grade steel and electroplated with a zinc coating, delivering superior corrosion and rust resistance against elements such as high humidity, road salt, water and grime. The range also includes brake hoses featuring banjo end fittings that come with new copper washers to ensure proper sealing. Every brake hose is subjected to a high-pressure quality assurance test before leaving the factory. The new brake hose range was unveiled for the very first time at Automechanika Birmingham in June. David Houlden, National Auto Parts managing director, said: ‘National is on an upwards trajectory as far as range expansion, business growth and new products are concerned.’

INVESTMENT

Charles Hurst develops its Fast Fit operation N

orthern Ireland’s biggest car retailer, Charles Hurst Group, is investing £100,000 rebranding its tyre division and developing a ‘Fast Fit Service’ across its four branches. The move follows the success of Charles Hurst Fast Fit when it launched earlier this year at the company’s flagship branch in Sydenham, Belfast. The Fast Fit division, which has 60 employees, will see the service rev up in branches across Northern Ireland including Portadown, Omagh, Coleraine and Boucher Road. With a focus on speed and convenience, Charles Hurst Fast Fit offers customers a one-stop shop for all motoring needs including tyres, headlight alignment, servicing and MOT prep. The company has also launched a mobile tyre-fitting

by DAVE BROWN @CarDealerDave

service across Greater Belfast. Andrew Gilmore, Charles Hurst Group’s aftersales operations director, said: ‘As Northern Ireland’s leading tyre stockist, Charles Hurst Group is delighted to invest even further in its tyre division and expand its Fast Fit offering across Northern Ireland. ‘Our fast fit service is centred on a high-quality, high-speed proposition which customers are increasingly demanding. We have also paired with Euro Repar as our official parts supplier so customers can feel confident that their vehicle is being looked after with quality parts by an expert team focused on providing the best customer service.’

James Thompson, manager of the flagship Fast Fit branch at Sydenham in Belfast, said: ‘Since the launch of our Fast Fit offering, demand for the service has really taken off. We understand that our customers are busy people, and that any time off the road can have a huge impact on their lives. Our convenient and competitive service, combined with the quality assurance that Charles Hurst is renowned for, are the reasons why our Fast Fit offering has been so successful. ‘Together, our staff have more than 300 years of experience within the division, so our customers will be in good hands.’ Part of the Lookers Group, Charles Hurst is Northern Ireland’s largest motor retailer, representing 22 brands across seven sites including its 20-acre Belfast headquarters.

Premier Components becomes an IAAF member FULL-LINE automotive core broker Premier Components UK Ltd has joined the Independent Automotive Aftermarket Federation (IAAF), with the aim of promoting the merits of remanufacturing. The company is a leading player in component sourcing and helps supply the wider remanufacturing industry across the UK and Europe. Based in Stratford-upon-Avon, Warwickshire, it employs more than 50 people and works with automotive aftermarket companies to maximise their recycling throughputs in an environmentally beneficial

way, offering many tailored services. Financial director Danny Edwards said: ‘Joining the IAAF is another step in our evolution as we look to champion the benefits of remanufacturing and our role within the sector.’ Wendy Williamson, IAAF chief executive, said: ‘A huge welcome to Premier Components, who, as a member, will not only benefit from extensive networking opportunities with other members but add further remanufacturing expertise to the wider IAAF message of promoting all aspects of the independent automotive aftermarket.’ CarDealerMag.co.uk | 73

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

Get ready – a new FCA regime is on its way Q

We offer finance deals and have been advised that we need to comply with the new FCA Senior Managers and Certification Regime rules. What is this all about? Essentially, this is about the Financial Conduct Authority (FCA) tightening up its rules in regard to lending activities. This latest extension of the Senior Managers and Certification Regime (SMCR) comes into play on December 9, 2019 and applies to all firms involved in finance, not just the motor industry. If you are already a Limited Permission Consumer Credit Firm (which most car dealers will be, as their main business is selling cars and not finance), you will transfer over to become a Limited Scope SMCR firm. As such, you will be subject to fewer requirements than any core firms (banks and insurers) but there is work to do, and with the FCA focus still firmly on the motor industry, you must do it and get it right. On the plus side, as a ‘solo-regulated’ firm, you

will only have to follow the FCA rules and not those of the Prudential Regulation Authority. SMCR has three elements: 1) The senior managers regime (SMR): This focuses on the most senior people in the firm who perform senior management functions. 2) The certification regime. This covers employees who are not senior managers, but whose jobs mean they can have a big impact on customers. 3) The conduct rules. These are new standards that will apply to employees across the financial services industry. You will need to consider if anyone performs any senior management functions and also decide who should be covered by the certification regime. As a dealership involved in finance, you must take reasonable care to ensure that no employee who is involved in selling finance does so without having been certified (by yourselves) as fit and proper to do so, both at the point of recruitment and on an annual basis.

ADVICE

It will be down to you to undertake the relevant checks and approve them as ‘fit and proper’ and to decide if they do actually come under the regime or if they are merely ancillary. There is no harm in extending ‘fit and proper’ checks to anyone involved in the finance process, as it is better to be over-cautious when it comes to the FCA. If the FCA does come knocking, it will look for evidence that you took steps to satisfy yourself of your employees’ ‘honesty, integrity and reputation’, ‘competence and capability’ and ‘financial soundness’. This is likely to include undertaking DBS checks, ensuring each person is fully trained and up to date with their Continuing Professional Development (CPD), and checking if an employee or prospective employee has been made bankrupt or has any unpaid CCJs. Although some of this may already be in place as part of your Approved Persons Regime, you do need to review your set-up to ensure that you stay on the right side of the FCA. Further advice can be found on the FCA website.

JOIN CAR DEALER CLUB AND GET ALL THESE BENEFITS WORTH £1,000s FOR Claim your dealership’s FREE website audit! Save £100 on your first bill when you join Click Dealer! Click Dealer is a performance partner for dealerships, with over 15 years’ experience and a portfolio of award-winning, integrated products and services, including websites, SEO, DMS, lead management, online sales software and a reputation management platform. As the digital dealership experts in an industry in which inertia has been a long-standing problem for forward thinking, Click Dealer has continued to innovate to stay ahead of its competitors and provide products and services for used vehicle dealers before

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

Offers will be running until the end of the year

74 | CarDealerMag.co.uk

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

Buy and sell trade stock quickly and profitably Cartotrade.com is the new online trade-to-trade platform set up by the ex-management team of Autotrade-mail. Cartotrade’s focus is on the integrity, security and accessibility of stock, complemented by a simple yet innovative platform that allows its members to buy and sell trade stock quickly and profitably. To see the benefits, Car Dealer Club members can have an extended, no-obligation, four-week free trial*. If, after the free trial, a Car Dealer Club member wishes to subscribe, they then get their next month completely free, without contracts and never a price increase. * Subject to vetting

WANT TO UPGRADE?

WHY I LOVE LAWGISTICS

Extra confidence to deal with those who are trying it on THE rule that consumers can reject something if it’s faulty within 30 days of purchase is something that has proved to be challenging for some dealers. That was why Botley Car Centre Ltd, near Southampton, signed up to Lawgistics, as it wanted guidance around this rule and to understand when a customer is and isn’t entitled to reject a car. Rob Sanders, director of the Hampshire firm, praised Lawgistics

for providing him with great advice. He said: ‘If we ever have any little consumer problems, I can just give them a quick call and pick their brains. It’s really convenient. Having Lawgistics as a back-up gives me peace of mind.’ Within the past two years, the dealer has had two court cases, and has been successful on both occasions thanks to the help of Lawgistics. Sanders said: ‘Normally, I would try not to go down the

court route, but I was so confident in myself and they gave me further confidence that I was in the right and that the customers were incorrect in their claims. ‘Lawgistics helped me from start to finish, and I would have struggled to be successful if they hadn’t been involved. Having Lawgistics and the confidence and peace of mind they give me means I can battle customers who are trying it on. It’s a faultless service.’

Can this customer change his mind after a week?

A customer test-drove two of our cars before deciding to buy ‘vehicle A.’ After a week, the customer informed us that he wished to reject the vehicle or exchange it for ‘vehicle B’. What is our legal position? This is a case of buyer’s remorse. The Consumer Rights Act 2015 does not entitle a consumer to reject a vehicle due to feelings of regret or change of mind. A trader can therefore decline to honour a rejection based purely on these grounds. A trader is liable to accept a

customer’s rejection under the provisions of the Consumer Rights Act 2015 if the customer can prove that the vehicle is faulty and was faulty at the point of sale. However, traders should be aware that under the terms of the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, consumers have up to 14 days to cancel distance or off-premises contracts for any reason and receive a full refund. A trader will be caught by these regulations if vehicles are sold over the phone,

internet or entirely off-premises under an organised distance-sales or service-provision scheme. Traders should also be aware that the cancellation period under these regulations may be extended by up to one year if the trader has failed to provide the consumer with the necessary precontractual information. Although a trader may not be legally obliged to accept the rejection, from a commercial standpoint traders may agree to take back the vehicle in exchange for a vehicle of similar value.

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Personalised promotional warranty material from The WMS Group

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Dragon2000’s dealer management system is one of the most versatile and easy-to-use products on the market. The software can help manage supplier and customer details, help you keep on top of your costs, and ensure that your business is running as smoothly and as profitably as possible. Car Dealer Club members are eligible for a 10 per cent discount on their first year of a Dragon2000 software subscription – and they get the free Vehicle Health Check app too.

WMS Group are one of the UK’s leading business-to-business car warranty suppliers, providing extended warranty cover and other motoring protection to more than 3,500 dealerships across the UK. Club members who sign up to our flagship used car scheme Safe and Sound (endorsed by former Stig and Hollywood stunt driver Ben Collins) will receive a promotional warranty video, starring Ben and tailored round your dealer’s needs, at zero cost. We’ll even come out to your dealership to film it!

Dragon2000

LAWGISTICS’ Basic membership – which you receive as a member of Car Dealer Club – is a cracking deal, but what if you need something that has extra clout? Larger dealer groups or a dealer embroiled in a big legal battle may require some more firepower, and the good news is that club members get discounts on Lawgistics’ other packages. You’ll receive a £100 discount off the Small Business package (normally £795) – perfect for sole traders, a partnership or a small dealer group – and £250 off the Professional package (normally £1,595). This is ideal for franchises, a dealer group or a car supermarket and covers all relevant legal areas and documentation. There really is a package for everyone with Lawgistics.

To join go to cardealerclub.com or call 023 9252 2434 and speak to one of the Car Dealer team Fifty per cent off your first video shoot or PR package Video has become a must-have for dealers, with branded, broadcastquality video for corporate messaging and social media outlets now the industry standard. Automotive PR and video expert OnCue Comms, which works with the likes of Glyn Hopkin, Nissan, Mitsubishi, Skoda and Motors.co.uk, is offering club members 50 per cent off their first video shoot or PR package. For more information, please call 023 9252 2434.

ON CUE .

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SPE

CarDealerMag.co.uk | 75

Auctions.

How not to sell a classic car at auction.

James Baggott, p90

Pearson

MANHEIM

Two new appointments to auction leadership team

AUCTION STATIONS

Gain a competitive edge in the busy used vehicle world

anheim has announced two new appointments to its auction centre management team. The Cox Automotive business – a leading provider of integrated products and services for the remarketing sector – has welcomed Dean Ashworth and John Fletcher as general managers of its auction centres in Colchester and Wimbledon respectively. Ashworth joins the business after an 18-year career with Inchcape Retail, where he held a number of senior roles. At Colchester, he will take responsibility for the leadership of its four-lane auction centre and 200-strong team. As Manheim’s largest auction centre, Colchester holds three regular auctions per week plus a number of standalone events, and sells more than 6,000 vehicles a month. He said: ‘Manheim is a great place to work, with a highly attractive heritage and culture. I’m excited to join the business as it advances its digital strategy, and I look forward to working with the rest of the leadership team to deliver an innovative, blended approach that will offer more flexibility to our buyers and great results for our vendors.’ Fletcher joins Manheim from Kwik Fit, where he held the role of regional manager, responsible for 15 of the business’s largest volume centres.

F Dean Ashworth

John Fletcher

Having joined the automotive industry as an apprentice motor mechanic, he began his management career with Ford, and has also held management roles with Halfords Auto Centres and Euro Car Parts. As general manager at Wimbledon, Fletcher is responsible for building on the centre’s strong reputation in the south-east and delivering its ambitious growth plans. He said: ‘In joining Manheim, I’ve found a business that shares my personal values. ‘At Wimbledon, our customers range from small independent dealers to remarketing managers for large dealer groups and fleets. The auction centre plays an important role in the success of all these businesses, and I look forward to helping our customers achieve their remarketing goals.’ Peter Bell, MD at Manheim, said: ‘I am delighted to welcome Dean and John to our auction leadership team.’

Adesa opens second defleet centre ADESA UK has opened a defleet centre on a 21-acre site in Doncaster to meet growing demand for its online services. The secure site, built on a former RAF base, is the company’s second strategic defleet centre, following last year’s opening Car dealer new strip ad Revised of a site in Newbury. It will be used to

store, process, clean and photograph vehicles from major leasing companies and corporate fleets before being uploaded to Adesa’s remarketing platform. Managing director Jonathan Holland said it would help it ‘disrupt 4/4/18 12:01 Page 1lengthy mainstream turnaround times’.

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

Professional Vehicle Auctions for Professional Vendors & Buyers

76 | CarDealerMag.co.uk

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

Excellent variety of weekly stock from premium sources

The Fleet Auction Group

www.fleetauctiongroup.com

lexibility is critical in the dynamic used vehicle market and BCA works closely with dealers to ensure we continue to innovate to meet their needs. With competition intense for the best used vehicles in the wholesale sector, dealers need to make quick decisions. BCA Partner Finance is designed to give dealers working capital to increase their stock holding and build their sales volumes. It makes it easier and quicker to replenish stock and control cash flow. Dealers can choose to upgrade their stock profile with higher-value vehicles and potentially increase the profit per unit. BCA Partner Finance funds the entire auction purchase, including fees and VAT applied to both cars and LCVs eligible for funding using the scheme. The service offers franchised and independent dealers up to 120 days’ funding on vehicles purchased at BCA auction centres. Partner Finance has seen lending grow by 18 per cent over the past year. The strong growth is due to a series of innovations aimed at helping dealers manage their used car programmes more efficiently. New investment in technology has enhanced the service at auction centres around the UK. The dedicated, branded BCA Partner Finance sales programme was expanded to help dealers maximise stock turn on vehicles that fall outside of their stocking profile. Partner Finance is also integrated with BCA’s Dealer Pro platform, which allows dealers to appraise partexchange vehicles and determine whether they want to retain and fund vehicles for retail stock or remarket them at the push of a button. BCA Partner Finance provides quick, easy and convenient stock funding for trade buyers, providing additional funding and improving cash flow when it’s needed. BCA Partner Finance affords customers greater flexibility in the stocking decisions they make and frees up capital to enable them to invest in growth elsewhere in their business, giving dealers a competitive edge.

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

Call 01530 833535 or go online for account application

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

Wholesale market continues to lift as plate change nears BCA continues to deliver a premium selection of stock for buyers across all market sectors, says Stuart Pearson, chief operating officer for the company’s UK remarketing operation.

he headline used car value improved in August 2019, rising by £254 to £9,407, a 2.9 per cent increase over the month. We reported a strong trading month even with the holiday season in full swing and a continuing shift in the mix of product entering the market as the plate change approached. We’ve seen the market continue to strengthen during the month, with good levels of trading, confident bidding and relatively strong price performance across all selling channels. BCA continues to deliver a premium selection of stock for buyers, with exclusive and preferred remarketing arrangements across all market sectors. We ensure that our buyers are fully informed of stock availability and, with the recent introduction of mobile bidding via the BCA Buyer app along with ‘Buy Now’ functionality, it means BCA consistently delivers the best possible buying power

for each and every one of the million-plus vehicles we offer annually regardless of channel to market. Fleet & lease values averaged £11,116 at BCA in August 2019, down by £178 (1.6 per cent) compared with July, largely as a result of changing model mix and seasonal factors impacting on supply. Year-on-year, values were down by £107 (one per cent), although rising age and mileage will have largely accounted for this fall in average value. Dealer part-exchange average values recovered to £5,043 in August from the July low. Average values for partexchange vehicles remain broadly in line with the same period last year, with a similar profile of age and mileage. Values for nearly-new vehicles at BCA rose to their highest point this year, climbing by £1,762 compared with July to reach £23,868 (plus 7.9 per cent). Model mix has a significant effect in this sector, with brandspecific winners and losers.

Headline used car value :

£9,407

Two-year partnership JCB GROUP, the Kent- and Sussex-based multifranchise dealer, has agreed an exclusive two-year remarketing deal with BCA. The partnership will see up to 3,000 vehicles sold each year at BCA Blackbushe in regular sales every Friday. JCB Group holds the franchises for Volkswagen cars and vans, Mercedes vans, Honda, Kia, Mitsubishi, Seat, Skoda and SsangYong in Kent and Sussex. It employs more than 500 staff. Jonathan Bischoff, managing director of the JCB Group, said: ‘BCA shares our commitment to innovation and has the scale to support our ambitious growth plans for our used programme. ‘The team at Blackbushe bring a wealth of experience to ensure the maximum buying power is generated for every JCB Group sale, both in the auction lane and through BCA Live Online.’ Adam Lish, head of new UK dealer business at BCA, said: ‘JCB Group is an ambitious motor retailer and we look forward to working in a close partnership to support its used-car programme and wider growth plans.’ CarDealerMag.co.uk | 77

Extra Cover.

...in association with Gallagher

Make sure you are well prepared in case a crisis hits your business The need for suitable insurance coverage is crucial – so read on and find out how to gain peace of mind with Gallagher.

ecent events highlight the dynamic and wide-ranging security crises that businesses can face, such as cyber extortion, product tamper or being caught in a terrorist attack. These crises can cause serious disruption, financial loss or adverse publicity that can impact your business and profits. With these new threats comes a greater ‘duty of care’ which companies must meet to ensure the safety of their employees and the public whilst on their premises in order to meet regulatory and legal obligations. The need for suitable insurance coverage to adequately protect the business, its assets and reputation is crucial. What are the key areas covered by our Crisis Resilience Solution? Gallagher’s Crisis Resilience Solution can provide you with the peace of mind needed to go about your day-to-day activities secure in the

‘With new threats comes a greater duty of care which companies must meet.’

Cyber extortion is one of the crises covered by the policy

What crises are covered by this policy? Act of terrorism Assault Blackmail Civil commotion Cyber extortion Detention

Deprivation (denial of access) Disappearance Emergency repatriation Extortion Hijack

knowledge that you are cost-effectively addressing your duty of care to employees and the public, and minimising the impact of a crisis on your business. For an annual premium of just £500, our policy provides 24/7 support whenever you need it and helps you to anticipate, prevent, respond to and recover from a wide range of security crises. 24/7 response consultants Receive 24/7 access to our experienced response consultants as well as immediate advice underwritten by AIG. Consultants’ fees and expenses of up to £100,000 per insured event. Emergency funds Get money when you need it most with up to three automatically loadable chip and pin cards and £5,000 of immediate funds.

Virtual online briefcase Access your key business information anywhere, anytime. This includes risk profiles, documents, templates, plans and contacts. Online training and awareness Get access to two free online training videos with further modules available as well as online risk management advice for multiple threats. Trauma counselling and expenses Receive care after a crisis, with post-trauma counselling and expenses up to £5,000. Business recovery advice Receive ongoing access to Gallagher specialists and support in getting back to business with minimal disruption.

For further information, go online to https://crisis-resilience.ajginternational.com/

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

78 | CarDealerMag.co.uk

Hostage crisis Kidnap Product tamper Sabotage Stalking Threat

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:

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E: automotive_enquiries@ajg.com

GST-225260264

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

CarDealerMag.co.uk | 79

Key Notes.

...in association with Traka

Industry could be heading for a new era of professionalisation Paul Smith, director of Traka Automotive, gives his take on imminent SMCR regulations.

he Financial Conduct Authority’s (FCA) and Prudential Regulatory Authority’s (PRA) new Senior Managers and Certification Regime (SMCR) will soon need to be fully complied with by all dealerships offering motor finance. The arrival of SMCR follows hot on the heels of the publication of the FCA’s final report on motor finance sales practices published in March 2019, which will have sounded some major alarm bells amongst dealership management teams. As a reminder, the FCA’s Motor Finance report stated: ‘We found that increasing DiC (Difference in Charges) and reducing DiC commission arrangements can provide incentives to brokers to arrange finance at higher interest rates. This is because the amount of commission increases with the interest rate the consumer is charged.’ The FCA even probed the tightness of the link between broker earnings and higher interest rates that customers were paying. The DiC models showed a very tight link between the two – suggesting that dealer brokers are effectively being incentivised to charge customers more than lenders set (as the base line interest rates), to access higher commissions. The regulator is now placing more of an onus on lenders to show that any differences in commission levels given to brokers are based on extra work required in the course of writing the business. It’s asked lenders to review their systems and controls in the light of these findings. Looking slightly more widely into sales practices in dealerships, a regulatorcommissioned mystery shopping exercise found just over a quarter of them (28 per cent) explained

the total amount that would be payable within the life of the PCP arrangement, the principal consequences arising from failure to make payments under the agreement, and the effect of withdrawing from the agreement mid-stream. There was also very poor disclosure of the fact that broker commission may be received for arranging the finance. However, the new SMCR appears to go deeper still – driving to the heart of finance and insurance (F&I) sales practices and standards by demanding that dealerships offering motor finance roll out fairly widespread management and cultural changes to stamp out all practices which, like DiC arguably, disincentivise fair treatment of customers. SMCR is also about ensuring the staff designated to offer F&I products have the right levels of competence. The regulator is also demanding senior management checks are carried out to ensure these employees are doing their jobs correctly and have up-to-date skillsets and training. The FCA is promoting five key principles of good conduct: 1) You must act with integrity 2) You must act with due care, skill and diligence 3) You must be open and co-operative with the FCA, PRA and other regulators

4) You must pay due regard to the interests of customers and treat them fairly 5) You must observe proper standards of market conduct The FCA sees SMCR as a catalyst for change, encouraging greater accountability for individuals responsible for selling consumer finance products, and setting a new standard for personal conduct. Everyone selling F&I products in your dealership will need to complete a Statement of Responsibility (SoR), which will need to be updated at least annually and be ready to be checked by the FCA should it decide to conduct a review of the market. There is also an emphasis on keeping skills up to date, with hours of continuous professional development learning logged and certifications like the Institute of Motor Industry’s F&I accreditation duly passed and noted on employees’ competence logs. Indeed, the words ‘professionalism’ and ‘professionalisation’ spring to mind when reading through the tenets of SMCR. This new, deeper level of individual accountability appears to point the way towards dealers gradually changing their employee pay and benefits packages – moving progressively away from basic salaries and high sales-based commission models to higher basic salaries with commissions geared to ‘treating customers fairly’ indicators and perhaps evidence of ‘wowing’ customers with great customer service. In this way, relationships with customers are likely to be stronger and dealer reputations more likely to stand the test of time as new waves of professionalisation start to impact on the way dealerships operate across the board.

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

15/12/2016 09:56

Market Insight.

...in association with ASE-global.com

Pendragon share price drops further but Lookers rebounds

Over 20 Car Stores will be closing in a strategic review after issues with surplus stock, says Mike Jones.

he delayed half-year results announcement from Pendragon, along with the resulting further management change, produced a further drop in the company’s share price in September. Set against this, we saw a price bounce from Lookers, as the market continued to process the impact of its FCA investigation, and from Inchcape, which continued its programme of retail site disposals. Outside of the franchised retailers, we saw a price drop at Motorpoint, with the founder David Shelton disposing of his holdings in the business. Financial performance This month we saw the much-awaited announcement of the Pendragon results for the first half of the year. As previously advertised, the results were poor, with the company posting an underlying loss for the six months of £32.2m compared with a profit of £28.4m for the first six months of 2018. A lot of the blame lay with the Car Store division, which came into the year with too much of the wrong stock, which the company then disposed of during the early summer dip in prices. The strategic review sees the closure of 22 of the Car Store businesses as the company appears to be moving away from repurposing previously franchised dealerships to concentrate on genuine

Share price movement during Sept 2019

Share price movement since the start of 2019

Pendragon

-10.3%

-59.3%

Vertu

-0.9%

-5.5%

Lookers

21.0%

-39.0%

Inchcape

9.3%

14.5%

Cambria

7.5%

4.6%

Caffyns

9.3%

Marshall

-0.7%

-7.1%

Motorpoint

-9.3%

11.0%

BCA

-2.4%

7.2%

Auto Trader

-4.1%

12.1%

used car supermarkets. This action, plus a review of goodwill carrying values, produced a oneoff £102m cost to the business, which took the overall loss for the period before tax to £130m. During September, we also saw a pre-close trading update from Vertu on its six months to August, which will be in line with current market expectations. In addition, Cambria gave a preclose update for its 11 months trading to July. This report was significantly rosier than many

of its peers, with trading significantly ahead of the prior year and therefore ahead of market expectations. Other announcements In addition to the announcement of the halfyear results, there were also directorate and management announcements at Pendragon. Following on from the departure of the chief executive, the announcement of the interim results also saw the departure of the nonexecutive chairman of the board, Chris Chambers. He had been running the business since the departure of the CEO, and his departure sees Bill Berman become interim executive chairman to provide leadership and strategic direction whilst the recruitment of a new CEO and non-executive chairman continues. One of Pendragon’s nonexecutives, Richard Laxer, also announced that he will be stepping down at the end of the year. It seems that until we get the new leadership team into the business, times will continue to be rocky for Pendragon. We also saw Inchcape continue its retail rationalisation programme during September, disposing of three retail-only sites in Australia, streamlining the Australian business around retail sites for brands where it is also the importer.

Mike Jones is chairman of dealer profitability specialist ASE Global. You can read his column here every month. CarDealerMag.co.uk | 81

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Recruitment. KEY APPOINTMENT

ADESA UK

New head of IT joins management team ADESA UK, a business unit of KAR Auction Services Inc, has appointed Kevin Nugent as head of IT. Nugent will lead its information technology team and joins the business from Manheim, where he had served as IT director since 2015. In that role, he led technology teams that powered services for vehicle locators, imagery solutions, data enhancement products and auction system data feeds. Jonathan Holland, managing director of Adesa UK, said: ‘We are delighted to welcome Kevin Nugent to the management team. His rich industry background and breadth of experience will make a substantial, positive impact on our business.’ Nugent will be a member of the senior leadership team for Adesa UK.

Click Dealer delighted to welcome Debbie

lick Dealer has appointed former Athoris general manager Debbie Fox as its new head of commercial. The dealership performance partner provides dealer management systems, websites and digital marketing services to more than 1,400 car and van dealerships across the UK, as well as being the pioneer behind the award-winning online vehicle retailing platform ClickEngage. Fox will be responsible for overseeing Click Dealer’s commercial team, as well as the development and launch of the company’s new transactional products and services. Having worked in the

Debbie Fox automotive industry for more than 30 years, with vast experience in motor and asset finance, data and software, providing solutions to manufacturers, dealers, contract hire, leasing and finance companies in the UK and globally, Fox has a tremendous

track record of delivering value to clients and identifying opportunities to drive revenue and increase market penetration. Ollie Moxham, chief executive of Click Dealer, said: ‘We are delighted to have Debbie on board. Her wealth of experience in the sector will prove invaluable as we move into 2020 and beyond with an exciting array of new transactional products and services for the industry. ‘We believe that with her exceptional leadership and guile we can continue our rapid growth in terms of increasing our customer base even further and, in turn, expanding our industry footprint.’

Workshop Planning Display Systems

Workshop Boards | Job Card & Clipboard Scheduling | Document Rack Systems

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W: www.Eurocharts.co.uk CarDealerMag.co.uk | 83

Data file.

James Litton

TRADER TALES

Historic supply and reward models not fit for purpose

easing companies have been a feature of dealership life for many years now. Like special forces operating behind enemy lines, they are taking your retail customers and there’s not much you can do about it. Faced with dwindling company fleets and a drop in resultant opportunities, specialist leasing companies have turned their attention to the private leasing market, and with websites like Carwow and Leasing.com well established, they have started to offer deals which own-label finance products cannot compete with. Historically, the majority of broker deals for PCH were offered using the respective brand’s white-label product, but many of the headline deals you will see from brokers today will be using a third-party finance house. So why are manufacturers turning a blind eye to this? Firstly, and perhaps most pertinently, they can’t do much about it. Competition law takes a dim view of anticompetitive practice, but looking at some comparative rates, it looks to be a strategy on the part of some manufacturers to actively encourage their activities. German brands and one or two others have had their own finance companies for a long time, and in a buoyant marketplace, confidence in residual values has been crucial in underwriting market-leading offers. This confidence in RVs, in addition to wider concerns around motor retail trends, means OEMs are happy to divest themselves of a significant portion of their book this way. This is despite the fact that a manufacturer will not realise the value of a car until it is auctioned or purchased at the end of a finance contract – a lengthy and costly business. Their approach is tied into the need for volume. OEMs have factories churning out cars and leaving them in ports is not the answer. However, they don’t want to be seen to be offering large discounts at retail level, so hiding big corporate support mechanisms with leasing companies is a more subtle approach. Why should we be concerned? Firstly, the supply of these cars is typically limited to those retailers who engage in large-scale fleet activity. There is also lots of black magic going on. I know of two OEMs who will give corporate terms to customers with company car allowances but do little to audit the practice. At some point, OEMs need to accept that historic supply and reward models are simply not fit for purpose. Or they need to admit that they don’t care about the retail model and will do anything to sell a car. Something needs to give. These deals are setting the market and significantly affecting retailer profitability.

‘Leasing companies are like special forces behind enemy lines.’

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

Suppliers

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Independent Garage Association

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W: gardx.co.uk/gardx-ad-vantage T: 01243 376426 E: goforaspin@gardx.co.uk Info: The award-winning 360 service offers an engaging display of the vehicle while additionally presenting profitable F&I products to a consumer.

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Hidden in plain sight – our feelings about customer

ast issue’s hilarious confession about the Victor Meldrew-inspired revenge on an annoying punter reminded me of a similar prank played on an equally loathsome individual who, to put it frankly, was a right pain in the backside because of his constant whingeing about the bill. This was at a place I worked at a few years ago. We did all we could to keep the costs down but he was never satisfied. We even tried politely suggesting he shop elsewhere – we were hardly going to lose much money, after all – but could ol’ misery guts (as he quickly became nicknamed among staff) be persuaded to take his custom to another garage? Not a hope! And so it went on, with our hearts sinking whenever he turned up with his jalopy, him complaining bitterly, and us smiling through gritted teeth as we did the work for practically nothing. Then one day, when a few of us were in the pub after work following the latest visit by our nemesis, a colleague spotted a mate of his who worked on the local newspaper so went over for a quick catch-up. When he came back, his face was beaming. ‘Lads – I’ve got a great trick we can play on ol’ misery guts,’ he said excitedly. He’d mentioned our trials and tribulations with this particular customer to his pal, who proceeded to tell him about a little trick that frustrated journalists sometimes played on people who’d displeased them. It involved carefully choosing the first word of each paragraph that went into print so the initial letters spelled out a word or message reading downwards... The next time ol’ misery guts came in, the fault was related to the car’s timing belt, and after the agreed work was carried out, we dutifully presented him with his invoice, which included the following (I’ve blanked out what we charged, for commercial confidentiality): Timing belt malfunction. Work carried out – 2.5 hours’ labour @ £xx per hour Inclusive costs (parts, sundries) – £xxx Total: £xxxx Some might say it was childish, but it made us feel enormously satisfied (and it was tame compared to some of the suggestions that were made). We think the guy must have rumbled it (although we’d have argued an honest mistake) as he never came back again. Double result!

‘Some might say it was childish, but it made us feel enormously satisfied.’

Tell us your story

Have you something to confess? Email us on editorial@blackballmedia.co.uk or post it on our forum – cardealermagazine.co.uk/forum CarDealerMag.co.uk | 85

86 | CarDealerMag.co.uk

Long-termers. LATEST FROM THE FLEET...

BMW i3 James has been endeavouring not to shout about how much he loves the BMW, but it’s difficult! by JAMES BAGGOTT @CarDealerEd

’ve tried very hard indeed to not become one of those evangelical electric car owners that we all try to avoid – but it’s slowly creeping in. You know the type I mean: the ones that constantly tell anyone who’ll listen just ‘how good electric cars are’, how they’re ‘easy to live with’ and that ‘they’re the future’. They annoy me as much as they probably annoy you, but after nearly two months with the BMW i3 I’ve sort of become that person by default. The thing is, with a unique-looking car like the BMW, more people than usual ask you what it’s like to live with. I’ve had neighbours wait for me by the car in the morning to ask what it’s like and a group of shoppers at the local supermarket hang around and want to know how the charging works as I plug it into the fast charger there. I can’t help but tell them just how much I love it. In fact, I’m genuinely surprised at how well it has fitted into my life. With a range of around 200 miles – which flexes up and down by around 20 miles depending on how and where I’m driving it – I’ve managed to get away with just two fast charges in that time. By plugging it in at work every day, in a normal three-pin plug socket, I’ve managed to keep the i3 topped up enough for my daily usage. I haven’t got access to charging at home so am relying purely on this trickle-charging at work (it takes 15 hours for a full charge this way) and it’s working. It effectively means the 1,000 miles I’ve covered so far have cost me personally the grand sum of £14 for two fast charges. OK, so that’s not very realistic, as most owners will be paying for their electricity at home, but if you’ve got a free charging point at work then it could equate to very cheap motoring indeed. It’s not just the frugal running that I’ve enjoyed either, as the i3 has some other interesting and likeable traits too. Firstly, it has the turning circle of a London taxi, making parking an absolute breeze. It can spin in the road with little need for a three-point turn and in tight car parks that’s a joy. If there’s one thing all city cars should have by default, it’s a tiny turning circle, and the i3 certainly boasts that. I love the sound it makes too. Much has been

James has been telling his neighbours and fellow shoppers about the benefits of i3 ownership

THE KNOWLEDGE Model: Engine: Price (as tested): Power: Torque: Max speed: 0-60mph Range: Emissions: Mileage:

BMW i3 120Ah Electric motor £40,310 168bhp 270Nm 99mph 7.2 seconds 223 miles 0g/km CO2 1,089

THIS MONTH’S HIGHLIGHT: Realising I’d spent £14 charging the car in 1,000 miles. said about electric cars making no noise – but at slow speeds the BMW emits a Tube train-like whirring on deceleration. I’ve probably described that poorly as it’s a bit more futuristic than that: a cross between something from the movie Tron and a Star Wars spacecraft. Either way, it’s pretty cool. As much as I love the looks, though, I’m struggling with the design of the doors. The rear ones become the B pillars for the front doors to attach to, so they can’t be opened independently, which means you have to jump out of the front to let someone in the back. That’s annoying, but far more frustrating is getting something out of the back when you’ve parked in a tight space. You’re forced to open the front and rear doors together which, when pinned in by a car or wall next to you, means

there’s just a tiny opening through which to extract the item. Removing even relatively small things has resulted in much cursing. If you’ve got plenty of space next to you to open both the doors the entry space is huge, but in our modern car parks that’s very rare and more often than not I get frustrated with them. And while I’m on the subject of gripes, the BMW has an annoying habit of ‘bonging’. For some reason, car manufacturers have developed this irritating feature that makes their cars play strange welcome noises. In the BMW, it begins when you turn it on, goes on for several seconds, then stops. I have no idea why – presumably it’s simply telling me I’ve sat down safely. There is absolutely no need for a car to make any noise whatsoever when you get in. But despite these minor moans, the BMW i3 is proving to be a perfect companion for my lifestyle. Unfortunately, my request to extend the three-month loan was denied so I’ll make sure I get as many miles under my belt in the next four weeks as possible. CarDealerMag.co.uk | 87

Long-termers. LATEST FROM THE FLEET...

Skoda Kodiaq SE L The Skoda Kodiaq lives up to its ‘Simply Clever’ billing and its ingenuity is impressive. by TED WELFORD @TedWelford

koda makes a big deal about its ‘Simply Clever’ features, and at first it seems like the usual marketing waffle. That was always my impression, but spend any length of time in a Skoda and you soon realise there is a literal meaning to this – clever features, just simply installed. Our last long-term Skoda – a Fabia Monte Carlo – impressed with its ice scraper installed in the petrol cap, along with a clip on the front windscreen for car park tickets. But with the Kodiaq being Skoda’s SUV flagship, there’s more room for lashings of ‘Simply Clever’. Problem is, KY19 VRT has been completely outsmarting me recently (easily done, my colleagues would probably say). The best example of this involves perhaps one of the ‘simpler’ features – the humble parcel shelf. Riveting, I know, but stick with me. With our long-termers getting plenty of use, it’s not uncommon to jump in a car to then realise that someone has removed the parcel shelf. Not usually an issue, as they’re ordinarily placed nearby, but with the Kodiaq there was no such luck. After asking several colleagues, it was a big fat no as to the shelf’s whereabouts. (NB: Sherlock, your job is safe.) Never mind, I thought, it’ll turn up. It just meant I had a pair of suitcases on show in a not particularly nice part of Portsmouth, although thankfully no one fancied their chances and the rear window remained intact. Fast-forward to Sunday when I was cleaning the Kodiaq and a mix of my stupidity and the car’s outright cleverness was revealed. Hoovering the boot and lifting its flat floor, the delight of a parcel shelf greeted me. At first – doing the things we Brits are great at and wanting to blame someone else – I thought what a stupid place it was for someone to leave a parcel shelf. But it turns out that Skoda had been too innovative for my own good and had left a handy, perfectly sized slot underneath the boot floor for the parcel shelf, where it’s out of sight and never in the way when not in use. That’s right – I was well and truly outsmarted by the Kodiaq’s ‘Simply Clever’ features. This is a prime example of Skoda’s helping88 | CarDealerMag.co.uk

This Skoda has many neat features – including the space shown below for parcel shelf storage

THE KNOWLEDGE Model: Skoda Kodiaq SE L Engine: 2.0-litre turbocharged diesel Price (as tested): £35,940 Power: 148bhp Torque: 340Nm Max speed: 119mph 0-60mph: 9.8 seconds Fuel consumption (combined): 37.7-39.2 Emissions: 145g/km CO2 Mileage: 2,765 miles THIS MONTH’S HIGHLIGHT: Appreciating everything that’s ‘Simply Clever’ about this recent addition to the fleet. hand approach to its cars, and it’s something that I absolutely love about the brand. Where other manufacturers are increasingly sacrificing usability for swoopy styling and looks, Skoda is sticking to an approach favouring functionality, and it deserves to be massively applauded for it. Another highlight of our Kodiaq is the umbrella that’s kept out of sight behind the door – something Rolls-Royces are known for. If you happen to find yourself in a rain shower, the one thing you always seem to have forgotten is either an umbrella or a raincoat. But once again, Skoda is well ahead of the curve. Elsewhere, all the Kodiaq’s doors feature small protectors that pop out as soon as the doors open past a certain angle. These can’t protect your own car from inconsiderate motorists slamming their vehicle’s door into yours of course, but they can prevent damage if you’re the type of person who’s apt to do this. I haven’t done a great number of miles in our Kodiaq, but it really doesn’t take long to

appreciate just how useful this would be to a large family. It feels as if Skoda has thought of everything to help make your life simpler. Our SE L-spec Kodiaq is soon being replaced by a better-looking Sportline version – pitched as the more dynamic option – so it’ll be interesting to see if this remains as versatile and ‘Simply Clever’. I suspect it will, and can’t wait to spend more time behind the wheel of the Kodiaq.

OTHER CARS WE’RE DRIVING

Ford Focus Vignale Mileage: 6,610 The AdBlue warning light came on recently, so Dave and EF19 YPC hot-footed it to the Halfords Autocentre in Gosport for a top-up. Thanks fellas, and nice to see a copy of Car Dealer in reception!

Suzuki Swift Attitude It’s certainly characterful – but will the latest addition to the fleet become a favourite with the team? by JACK HEALY @jack_healy19

he supermini market continues to be one of the most popular in the UK – with the latest SMMT figures showing that Vauxhall’s Corsa was top dog for September, with Ford’s Fiesta not far behind. But although those two dominate sales, the sector is filled with many other great options that can give city drivers and new motorists all they’d need. One such model is this, and our latest addition to our long-term fleet: the Suzuki Swift. Here in Attitude spec, we have what is now our smallest car and one that sits in the middle of the supermini’s trim line-up. Although the Swift may not be the most stylish and attention-grabbing model in the segment, it comes with reliability and affordability on its side. Available with a petrol-hybrid powertrain as well, our Attitude is only offered with the 1.2-litre Dualjet petrol engine that is mated to a five-speed manual. Developing 89bhp and 120Nm of torque, this peppy motor can get the Swift from 0-60mph in 11.7 seconds – not the fastest, but that’s okay. Suzuki claims that the Attitude variant will achieve 55.4mpg, but with our short time with the model so far, we’ve been able to get at least two miles per gallon more than that. Here in Fervent Red paint and sitting on 16inch alloy wheels, the Swift Attitude is styled like

The Swift may not be the most stylish and attention-grabbing car but it’s reliable and affordable a Swift Sport-lite – most of the sporty detailing but lacking the outright performance. That’s no bad thing though, as you’re able to enjoy its looks but for a lower premium. For the £14,099 starting price, the Swift Attitude comes with LED daytime running lights, a touchscreen infotainment system with smartphone integration and Bluetooth, automatic headlights, air conditioning, a leather steering wheel, reversing camera and rear privacy glass. Not that much in the grand scheme of things, but at this end of the market that’s more than enough to be getting on with. In the first month or so with the Swift, it’s been thoroughly run in. Multiple trips to London, a drive round the South Downs plus a longer journey to Devon and back mean that KJ19 AEW is nicely settled in now. We’ve found the featherweight Swift – with a kerb weight of 980kg – has been great fun on

country roads, as the responsive steering means you can chuck it around while using all of the power to fling you out of corners. That’s all while staying under the speed limit, and the responsive brakes give you the confidence to brake later when having a bit of fun. The gear changes are also really short, meaning quick shifts are easy to achieve. When settling down into longer drives, there have been a few little rattles here and there, and not all the materials used are of the highest quality, but it’s a 14-grand car – what else can you expect? The Attitude remains settled on the motorways, while around town – where it’s suited best – the Swift feels easy to manoeuvre, park and navigate down narrower streets. The storage space is also quite good for a car of this size, with the 265-litre boot rather impressive and well shaped. The rear seats don’t fold flat, but we’ve been able to work round that small issue. We don’t want to cover all aspects of the Swift just yet though, as over the next six months we’ll be seeing just what it’s like to live with and whether it wins us over.

THE KNOWLEDGE

Mazda 6 Tourer

Honda CR-V EX

Mileage: 16,309

Mileage: 2,135

The Mazda 6 is nearing the end of its time with us, having proved a reliable companion and a capable mile-muncher. We’ll be sad to see it go – the stylish estate has really added a bit of class to the fleet.

Ryan Hirons has been spending plenty of time with ‘our’ Honda CR-V recently. In fact, it’s spent a fair while up in his home town of Hull. Hopefully he’ll bring it back down south sometime soon...

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

Suzuki Swift Attitude 1.2-litre Dualjet petrol £15,484 89bhp 120Nm 111mph 11.7 seconds 55.4mpg 124g/km CO2 2,190

THIS MONTH’S HIGHLIGHT: Enjoying some country roads with KR19 AEW. 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

A lock-up and a cock-up! How not to sell a classic car at auction

’ve thought long and hard about telling you this story – but I reckoned there’s probably a fair few of you out there feeling rather gloomy, so a tale of woe and the chance to laugh at my ineptitude would probably help cheer you up. And inept this is. For those of you who don’t know, I like my ’80s hot hatches. In fact, I think I’ve probably written about them here a few times, dreaming about setting up my own garage one day, selling similar classics to like-minded people. After this particular episode, I might want to give that a bit of a rethink. A few months back, while putting yet more rubbish in the work lock-up, I quite literally tripped over my Peugeot 205 GTI. Such is the state of the lock-up, piled high with the sort of crap that even a hoarder would class as ‘a bit of a mess’, it’s quite possible to forget cars actually live in there. Somewhere, behind an old sofa and some half-built desks, is my Ducati 998, hidden under a bed sheet. Elsewhere is an old Mini that a former colleague has forgotten about, probably because it’s mostly hidden by iMac boxes. Somewhere close by, behind old, broken office chairs that have been wheeled over there to retire, is my BMW R1150 GSA, and under two car covers – because for some reason I decided one wasn’t enough – is my Ford Fiesta XR2. Yes, it’s a big lock-up, and as is usually the case with these things where too many people have access and there’s little policing, it’s completely full of rubbish. Anyway, back to the Peugeot. I decided that because I hadn’t actually used it for two years, I really ought to sell it. I thought I could spend the money on a kitchen or something sensible like paying some of my mortgage off. Boring, I know, but the Peugeot admin was more annoying than the car was useful. The real problem with classic cars of this type is that pricing them is nigh-on impossible. Age, mileage, condition and history all have a huge effect. My GTI is pretty pristine on the outside, having spent 100 hours in a paintshop having a baremetal respray restoration. I spent a ridiculous amount of money on original replacement headlights, and that little red trim that goes around the bumpers cost me just shy of £500 alone. I looked around on eBay and noticed they were priced from £2,000 to more than £15,000. Because I’d rather punch myself in the face than deal with the text-speaking lunatics that seem to frequent the bowels of eBay’s car-buying ecosystem, I decided to enter it into an auction instead. The Classic Car Sale, run by Silverstone Auctions, seemed like as good a place as any. I called up and chatted to the owner who

suggested I enter my car in their August sale with no reserve. I balked at the thought, but he convinced me it was the best way to attract interest, and that if I wanted to, I could always ‘buy it back myself’. Interesting. I filled out the online entry form, found some tasty pictures we’d shot of it over the years, and collated all the history I’d scattered around my house, garage and work. The Peugeot had been in this magazine twice, in a book on the history of 205 GTIs and even on the cover of Mike Brewer’s Ultimate Guide to Used Cars, so I included those in the pack too. I MOT’d it, serviced it and even got our Ted to give it a showroom-fresh valet at the auction house’s sale room to ensure it looked its best. As to what I expected it to sell for, I really had no idea. There were four other 205 GTIs in the sale, one of which had been bought by the current owner six months before this sale for £19k. I was hoping mine would make £10k, but secretly had far greater ambitions for it. I registered as a bidder and drove to Warwickshire thinking about what I’d be prepared to let it go for. I came up with the arbitrary figure of £7,500. Don’t ask why. I found a place at the back of the hall and didn’t have to wait long – my car was first up. Bidding started slowly – worryingly so. I raised my number to get things moving, eventually edging it up towards £7k. It was just me and a phone bidder at this point. Then, to my horror, I ended up entering the winning bid at £7,200. The room applauded the first car sold in the sale – little did they know it was me, buying my own car back. The idiot. I hung about to see what the others went for. The guy who paid £19k for his took an £11k haircut on his ‘investment’. Few cars in the sale made their reserve, and in the first 100, we counted a handful or so actually selling. I couldn’t let mine go for a paltry figure. Even as a bookend for piles of crap in my garage it was worth £7,200. So, what did the whole little venture cost me? Well, not only was there an entry fee, but I had to pay the seller’s fee AND the buyer’s fee. A bit of negotiating with the auction house and I ended up paying them £500 to cover the fees and they kept the entry price on top. A painfully expensive lesson in how not to sell your car. Told you I was inept. It did get me thinking, though. There was a time when the classic car market could do no wrong – cars were selling all over the place for silly money. Not a week seemed to go by without another ‘record’ sale. I can’t help thinking the whole economic situation has caused the market to soften to the point of melting. Classic car auction houses might disagree, but I fear it’s pointing towards a worrying downwards trend. I think I’ll just go back to not using my Peugeot for a few years instead and hope in that time the world settles down a bit and I can bag a BMW E30 for a sensible price once again.

‘Such is the state of the work lock-up, it’s quite possible to forget cars actually live in there.’

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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FROM FINGERTIP TO FORECOURT Say hello to your new buying app

BCA Buyer app now includes live bidding. Manage your buying, wherever you are. Leaving you free to close those important sales. bcabuyer.co.uk