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Issue 155 | February 2021 | CarDealerMag.co.uk | £6
WHAT THE FUTURE HOLDS
EXPERTS REACT TO 2020’S REGISTRATION FIGURES
FIRST DRIVE
M340
BMW
GADGETS: DASHCAMS TO BIKE RACKS – THIS MONTH’S BEST BUYS
NEWS
• COVID SPOT-CHECK WARNING • NEW VAUXHALL MD • SSANGYONG FINANCIAL WOES • TREVOR FINN’S SWEDEN MOVE • PETER VARDY LAUNCHES CARZ • RENAULT SELLS FLAGSHIP SITE
THE
SHORTLIST
FIND OUT WHICH DEALERS COULD BE IN FOR A WIN INTERVIEW
JAMIE
CAPLE
0d
ON OPERATING ‘AT THE LIMIT’ AND STAYING MOTIVATED PLUS
IS THERE STILL LIFE LEFT FOR FAST DIESELS?
HELP& ADVICE
TOP TIPS FOR SELLING CARS DURING (YET ANOTHER) LOCKDOWN
BABY BUGATTI: WE DRIVE AN ELECTRIFIED CLASSIC WITH A DIFFERENCE
The UK’s Best Used Car Warranty
02 | CarDealerMag.co.uk
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CONTRIBUTORS James Batchelor, Darren Cassey, Rebecca Chaplin, Nigel Swan, Ted Welford.
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WELCOME. C
ar dealers are a resilient bunch – and after 2020 they need to be. Battered and bruised by two lockdowns in a year, just as showrooms were gearing up for the start of what is usually a busy January period the PM stood up in front of the nation once again and told us all to stay home. This time it certainly feels a lot worse, but we have to focus on the positives – back in April and May last year dealers were well and truly shut. While some managed to transact a little online, there was a long period where no one even knew if home deliveries or click-and-collect were allowed. Now, after months of battling varying tiered restrictions and different lockdowns, car dealers have mostly got their acts together to continue to sell online. Auto Trader told me this month during a Car Dealer Live interview that while in April and May last year as little as 20 per cent of normal numbers of cars were being sold, that rose to as high as 75 per cent in November. The fact dealers were able to achieve sales as high as that during lockdown MkII will give many hope for this current set of restrictions. Asked what they thought dealers could hope to achieve in terms of sales volumes for Lockdown 3.0, Auto Trader’s director Catherine Faiers guessed it would be more like half normal numbers. Depends how you look at life on whether that’s a good or bad thing. I’d like to think that’s pretty good considering the strong stay-at-home messages from the government. While it’s clear dealers can without doubt continue to do business via remote means, there are a number of things to consider while continuing to do business. The first is a moral point – is it right to entice people out of their homes to buy cars when the government is insisting people stay at home? I haven’t got the answer to that one and it’ll need to be a call that individual businesses make. Some people need a car for essential travel, and even going to the shops once a week can count as that, so most people will have a legitimate reason to be buying a car. But I have heard of some dealers who don’t think it feels right to be trading – one camper van business near here has shut up shop completely until the lockdown ends. I strongly believe the wheels of the economy need to continue to turn, and if business is conducted remotely and then vehicles handed over in a Covid-secure manner, what’s the problem? If you own a car, chances are at least one thing it is used for can be classed as ‘essential’. And then there’s the mental health benefits of cheering people up with something new and flashy during what is an incredibly depressing time. But whatever your stance on the moral argument, be careful to stick to the rules if you do open. We reported on the website last week of mystery shops by the police, Trading Standards and Health & Safety Executive all trying to catch dealers out. It’s happening across the country and I hear some have fallen foul of the rules. Don’t be one of them.
The PM stood up in front of the nation once again and told us all to stay home.
A
nd lastly, during that boring bit between Christmas and the New Year we decided to make a Car Dealer Podcast. We’ve already recorded five episodes and aim to do one a week. You can find them on Spotify, Apple Podcasts and many other platforms simply by searching for ‘Car Dealer Podcast’. Have a listen and let me know what you think. If you like it we’ll do more. Enjoy the issue.
JAMES BAGGOTT Founder, Car Dealer CarDealerMag.co.uk | 03
Reach people where they are already shopping for vehicles. “
Marketplace has allowed our dealers to benefit from a huge number of vehicle impressions via Facebook every month. The ease of listing their stock and the lead volumes they receive from shoppers, makes Marketplace a key marketing channel for any dealer.
”
- Paul Hilton, Sales Director,
>50M Total vehicle listing views on Marketplace to date
3.4m Views on retailer’s stock each month
GForces
To get started, visit fb.me/list-vehicles 04 | CarDealerMag.co.uk
>350 Retailers / franchises on Marketplace Stats, data and metrics client’s own
IGNITION. ISSUE 155 | FEBRUARY 2021
23
CONTENTS
Interview: Jamie Caple 6 Winners and losers for 2021 8 New cars for 2021 10 SMMT analysis of 2020 12 Used Car Awards 23 News digest 28 Feedback 44 Supplier news 46 Business news 50 Car Dealer Live 52 Finance 56
36 6
10
54 67 INTERVIEW
‘I operate best when I’m under severe pressure. Not a nice way to live but I think I get a kick out of it.’ 6
COMMENT
‘It’s been interesting to watch from the sidelines a changing of sentiment among the motor trade.’ 17
FEATURE
‘We want to bring these classics to a new audience that otherwise wouldn’t be able to afford them.’ 54
FORECOURT BMW M340d Alfa Romeo Stelvio Audi A3 Sportback Citroen C3
32 36 38 40
FEATURES We drive a baby Bugatti
54
COMMENT James Baggott Big Mike James Litton
17 18 21
ADVICE Selling tips for lockdown Lockdown Q&A
59 60
DATA FILE LCV news Suppliers Guide Long-termers
64 65 67
LONG-TERMER
‘My poor S4 was looking decidedly sorry for itself just a few days after arriving full of charm and swagger.’ 67 CarDealerMag.co.uk | 05
‘I’M MR
INTERVIEW
100 MPH’
J The Car Quay team
‘I operate at my best when I’m under severe pressure. It’s not a nice way to live my life but I think I get a kick out of it. 06 | CarDealerMag.co.uk
Car Quay boss Jamie Caple talks to Rebecca Chaplin about what’s important to him these days – including shunning the limelight.
amie Caple won’t strike most people as the shy and retiring type. Many will recognise him as one of the major players in the famous Car Sales/Dealers Group Facebook group, often seen throughout the lockdown sharing his advice or a bit of humour from his home office. Those with longer memories will know him for his days on television show Used Car Wars, going head to head with his now colleague Craig Vladimirovs before leaving his beloved business Caralot in 2016. That’s why Caple admits he’s shied away from the limelight in recent years, but you’ll need to remember the über-larger-than-life car dealer donning a Mexican wrestling mask to appreciate how Jamie 2.0 is a bit of a wallflower in comparison. He’s been desperate to get back out to the auctions since the pandemic struck and was planning to attend his first one in 10 months on January 5, but Boris had other ideas. ‘The last auction I went to was probably the first week of March. I was meant to go on the Tuesday just before lockdown but my partner had lung issues a few years ago, so still now she’s very nervous about Covid,’ he said. He stayed at home from March 13, knowing he was doing the right thing but watching from a distance, itching to buy, as auction prices dropped. ‘Cars were really cheap but it was probably good I didn’t buy any because it meant I could relax in lockdown. ‘I wasn’t bouncing payments on people but sometimes I look back and wonder if I was too relaxed. I’m trying to buy some lumpier cars now because there’s money in the bank. ‘I operate at my best when I’m under severe pressure,’ he admitted. ‘It’s not a nice way to live my life but I think I get a kick out of it. ‘We built this business by operating at the limit every day. That sounds like we’re about to go pop but we’re not – we make sure that we’ve constantly got every penny in stock that we can make money off.’ Everything he wants is ‘going for diamonds’ at auction now, he said, but he’s pleased to be back in the dealership and says the pandemic has actually been a great thing for the business. ‘We’ve increased our stock and our team, so we should be doing better than we were before, and I think Covid and the rush from people to buy cars has helped us.’ This isn’t a time to be resting on your laurels though, he said. Although he’s full of praise for the Derby-based Car Quay team and business partner Craig, he knows they can do better and wants to keep pushing them to do that. ‘We do the job well but I still believe we do the job 60 to maybe 75 per cent as well as we could. There’s a massive opportunity for self-improvement and for our team to get better. ‘I always say the job will get easier. It’s become a bit of a running joke here but I want to make the job easier. I want my team to leave on time with everything done and that makes life less stressful. I’ve got an amazing team here and they all do a brilliant job. The best thing is they want to be here. I was saying the other day that when people pull a sickie it’s
because they don’t want to come to work, and that doesn’t happen here. Something great that has happened this year is how much better Craig has got. I’m not saying he was doing anything wrong before, but in the last three or four months particularly he’s just levelled up. ‘To see that is brilliant and the result we’ve had this year is as much what he’s put into the business as me. ‘I’m Mr 100mph, but when I’m down who motivates the motivator? That’s what he does for me and it works.’ At the last Used Car Awards in 2019, Caple won the Dealers’ Dealer title for his support of fellow traders, while his used car dealership Car Quay picked up Best Newcomer. This year, the Car Sales/Dealers Group decided to put on some awards for the businesses and people they felt had really made a difference in 2020, and Car Dealer Magazine was proud to be recognised. The winners were chosen by the group admins, and Caple said that as they couldn’t all get together for the awards he decided to don a suit and present them from home on Facebook Live. Jamie collects his award for Dealers’ Dealer at the Used Car ‘I’d heard a lot that Ben had lost a lot of staff. All charities I’ve Awards 2019 from Leon Bosch, managing director of the heard have been kippered during Covid, because when situations automotive practice at Gallagher, and Mike Brewer like this happen people stop giving money to charity. I thought it would be nice to give Ben a big shout-out because they’ve done a lot of good for people. ‘Then Auto Trader, I thought they deserved a massive shout-out for being the first to the party offering support for dealers. ‘For all of the negativity that they receive, categorically they stood up and said “We’re going to help” and all these other advertising companies followed suit. ‘Absolutely, we felt Car Dealer deserved some recognition. You guys got the motor trade to go back to work at the end of April. ‘We were all wondering what we can do, and it took an article from Car Dealer to clearly define whether we could deliver cars to customers legally and offer click-and-collect. And that piece came out late in April and every dealer I know who was sitting at home said they were going back to work.’
T
he Car Sales/Dealers Group allows Caple to be himself, he said. However, despite loving the way social media lets him interact with fellow car dealers, he’s not convinced this time around that it would make a difference to his business. ‘I don’t use my personal social media to talk trade other than on private groups, unless something really major has happened. ‘My old business went pop and I just wanted to hide away – and I did. These groups allow me to be me on social media but in a protected way. Not that I’ve got anything to hide, but I just keep more of a low profile in my personal life. They knew me as this larger-than-life Caralot character. Maybe we’re missing a trick but we’ve built this business up to where it is without social media. ‘I think things have changed though. We used to use social media to show off great reviews but now you go to our Auto Trader account and there are 400 five-star reviews right there. And if people Google us we’ve got a 4.9 star rating too.’ These quieter times have given them the opportunity to get better, he said, adding that everything in the showroom was looking perfect as we spoke, and that staying on top of these things was their goal. Looking further into 2021, he’s anticipating some changes will need to be made, while some of the changes that were made last year they’ll keep. ‘Customers are going to have to come back in. I like customers not coming into the showroom. That sounds horrible but I do,’ he said. ‘We’ll keep doing home deliveries. We’re taking extra precautions and keeping cars clean. ‘I think there’s going to be a seismic shift, even after everyone’s had a vaccine. There aren’t going to be big groups of people hugging and high-fiving and shaking hands. I just don’t see it. ‘The business is just going to be a little bit more online-driven. Things are done at a distance, and we’re happy with that.’ The main goal, though, is to keep improving. ‘We’re getting better,’ Caple said. ‘We’re better than a year ago and this time next year we’ll be even better.’
My old business went pop and I just wanted to hide away – and I did.
The Car Quay dealership
CarDealerMag.co.uk | 07
DASHBOARD
WINNERS &LOSERS
2021
FOR
2020 was a year like no other, and 2021 has delivered its fair share of challenges already. But which car brands are giving their dealers things to look forward to?
T
here’s no doubt that 2020 will be remembered as a year in which the world was turned upside down and economies were rocked as the sheer impact of the Covid-19 pandemic became apparent. Onwards, then, to 2021 – a year that has started with a host of challenges of its own. But all things being equal, by the time it draws to a close things will be a bit more stable. ‘2020 will be seen as a ‘‘lost year’’ for automotive,’ said SMMT chief executive Mike Hawes. ‘However, with the rollout of vaccines and clarity over our new relationship with the EU, we must make 2021 a year of recovery.’ And the shoots of recovery are there, with some brands if not others. Here’s our roundup of those for whom opportunity knocks, along with some franchises that – sadly – may see their opportunities knocked. 8 | CarDealerMag.co.uk
JAGUAR
Luxury cars have struggled in 2020 and the auguries aren’t great for 2021 either, as manufacturers clamour to meet their CO2 targets. For Jaguar, though, the situation is better than most. Car dealers like luxury motors because there’s usually a decent margin associated with them. And Jaguar was ahead of its rivals with the I-PACE electric SUV. This year’s electric XJ will be the first car in its class to go fully EV, reducing Jaguar’s overall emissions and giving dealers a luxury car that truly embraces the mood of the moment.
2021
WINNERS MG
MG puts ‘UK’s fastest-growing car brand’ on every email or piece of paper that flies out of head office and who can blame it? You can’t argue with a 44 per cent sales growth in a market down by almost a third. The company is on the crest of a wave with its ZS EV and new MG5 EV leading its electric charge, plus a Kia-rivalling seven-year warranty. There are big (and overdue) changes in the dealer network, too. MG has set out a bold ambition to achieve two per cent market share in 2021.
FORD
Ford is often seen as the barometer of the UK’s car industry, having led the market for more than 30 years and more or less consistently held top spot in the market with the Fiesta and Focus. In uncertain times, familiarity is king, and a Ford franchise is worth its weight in gold, especially with new products such as the Mustang Mach-E on the horizon.
2021
LOSERS MITSUBISHI
With the knowledge that it plans to leave Europe, morale is low among Mitsubishi’s dealers, many of whom are looking to emerging brands to fill the gap that it'll leave. Isuzu, MG and SsangYong are leading the pack, although that last one faces problems of its own (see below).
CITROEN
TOYOTA
In normal times, a slump in registrations of 12.74 per cent would hardly be seen as a success story. But for Toyota, the picture is much bigger. First of all, that drop is still outperforming the market by 17 percentage points, while the Japanese brand successfully increased its market share from 4.55 per cent to 5.63 per cent in 2020. A lot of that is down to the brand’s long-established reputation for producing hybrid cars, which are increasingly popular with private buyers. A Toyota franchise is a safe bet in 2021.
MERCEDES-BENZ VANS
VOLKSWAGEN
In a car market that was down 29.43 per cent in 2020, VW just about outperformed it with a year-on-year drop of 26.12 per cent. So why is that news for excitement? Well, with EVs set to be the biggest news in 2021 and projected to comprehensively outsell diesel, the German brand is off to a flying start with its ID.3 electric car, which was straight in at number 4 in the UK sales charts in its first full month on sale.
In April 2020, the Sprinter was the best-selling vehicle in the UK outright, thanks to huge demand from the supermarket home delivery sector as well as parcel delivery companies. And with 2021 beginning in yet another lockdown, the demands on the home delivery sector are still huge. A Mercedes van franchise is a licence to print money – especially if it comes with a service contract.
Of all the mainstream brands, Citroen took the biggest hit in 2020 with a 45 per cent decline in registrations from 50,806 cars in 2019 to just 28,059 last year. It’s a frustrating landscape for the brand’s dealers, allied to uncertainty around its imminent merger with FCA. But the new C-Series of mainstream models and the Ami EV could provide a much-needed tonic if the company gets its marketing right.
SUBARU
2021 is likely to be the year in which Subaru decides whether or not it has a future in the UK, in what will be a make-or-break trading period for the company’s franchises. The past three years have seen continued decline and 2020 was terrible, but a new mid-size all-electric SUV and a new WRX on the horizon give a glimmer of hope.
DACIA
Once the darling of the budget car market, Dacia had an awful year in 2020, selling just 18,918 cars versus 30,951 in 2019. The effect of the pandemic on the company’s traditionally older customer demographic has slowed business, as has a drop-off in demand from those shopping at the cheaper end of the market, where consumer confidence is currently very low.
SSANGYONG
At the start of 2020 SssangYong was going great guns, but in December the South Korean brand filed for bankruptcy. It has three months to restructure and develop a plan to clear its debts. The UK management team says there's no reason for concern, but dealers and customers are wary. CarDealerMag.co.uk | 9
BMW M3
DASHBOARD
NEW CARS FOR
2021
The BMW M3 is one of the most iconic names in the car enthusiast world, so a new one going on sale is a pretty big deal. BMW has given its super-saloon a hefty makeover, with the new 3.0-litre straight-six engine making 503bhp and 650Nm of torque. It also gets a four-wheel-drive system instead of the typical rear-driven setup.
Despite the coronavirus pandemic causing sluggish new car sales, manufacturers are pushing ahead with new models.
FORD MUSTANG MACH-E
While the name might have sparked some controversy among Mustang enthusiasts, there’s no doubt that for mainstream buyers the chance to buy an electric Mustang SUV might just be too good to turn down. Ford’s first full EV looks great and offers power and range choices at varying price points to appeal to a wider market. The top-spec version boasts a 370-mile range – one of the furthest of any EV.
BMW iX3
It’s likely 2021 will be the year of the electric vehicle, with many big manufacturers taking their EVs from niche models into a wider range of mainstream segments. BMW is a prime example, with multiple new EVs expected in 2021. An electric version of the hugely popular 3 Series, called i3, will be a key model, the iX3 crossover will be a top seller, while the i7 will be an intriguing new luxury flagship model.
10 | CarDealerMag.co.uk
HYUNDAI TUCSON The past few years have seen Hyundai not only become a mainstream contender, but also a genuinely viable option as a premium car maker. The new Tucson will spearhead this move upmarket, seeing the existing SUV given a comprehensive makeover. Its USP will be the new ‘parametric hidden headlights’ – it will be interesting to see these in action in the real world.
NISSAN QASHQAI
Arguably the most important car in the crossover market, the Qashqai has been key to the segment’s sales boom over the past decade. With a huge list of rivals to compete with now, early spy shots indicate a completely new look for the new model, while a new hightech and more upmarket interior has been hinted at as well.
JAGUAR XJ
In the premium car market, Jaguar Land Rover is quite a small player outside the UK. However, the EV revolution presents an opportunity for it to take the fight to the likes of BMW, Mercedes and Audi. The new Jaguar XJ will be the focus of this because it's switching to being an electric vehicle. Spy shots hint at a much chunkier design than the current curvier styling.
AUDI E-TRON GT
VW ID.4
Volkswagen has used the controversy surrounding dieselgate to drastically pivot its strategy to focus heavily on electric vehicles. The firm is known for building excellent, affordable cars for the mainstream market, so is one of the most important players in bringing EVs to the general public. Its electric ID range was launched with the ID.3 hatchback, and that'll be joined this year by the ID.4 crossover.
MERCEDES-BENZ EQA
Electric vehicle sales are rapidly increasing but still make up a small segment of the market. Increasing interest will be down to exciting performance models such as this – the Audi e-tron GT. It’s expected to be revealed in production form soon before going on sale later in the year. The sleek coupe will have two motors, giving a total of 637bhp and making it more powerful than the firm’s R8 V10 supercar.
Another firm launching a variety of EVs under new branding this year is Mercedes-Benz with its series of EQ-badged cars. One of the most important will be the EQA – the electric version of the existing A-Class. The hatchback is Mercedes’ best-selling model and regularly finds itself as one of the top five-selling cars in the UK each month.
CUPRA FORMENTOR
Cupra used to be the sporty division of Seat but is its own brand these days. Until now, it has built performance versions of existing models. However, the Formentor will be its first standalone car. As part of the VW Group, it’ll be well made and reliable to go with those sleek and stylish looks. CarDealerMag.co.uk | 11
DASHBOARD.
STATISTICS
SMMT
SALES DATA
THE LATEST REGISTRATION FIGURES TURBULENCE
2021 must be year of green recovery after new car total falls by nearly 30 per cent by John Bowman john@blackballmedia.co.uk
T
he UK’s new car market suffered a drop of nearly a third in 2020, with annual registrations plummeting to 1,631,064 units, according to data from the SMMT. The industry body said figures were down by 29.4 per cent for the year, with a 10.9 per cent fall in December ending a turbulent 12 months caused by the pandemic. Demand plummeted by 680,076 units to the lowest level of registrations since 1992, which saw 1.594m new vehicles. 2020 also saw 31.1 per cent fewer vehicles joining large company car fleets. The industry suffered a total turnover loss of some £20.4bn, said the SMMT, with private vehicle demand falling by 26.6 per cent overall, equalling a £1.9bn loss of VAT. Demand dropped across all segments except specialist sports, which grew by seven per cent, although the most popular class of car was still the supermini, retaining a 31.2 per cent market share despite a 25.9 per cent fall in registrations. Meanwhile, although sinking by a combined 32.9 per cent, petrol and mild hybrid (MHEV) petrol cars comprised 62.7 per cent of registrations, while diesel and MHEV diesels – which were down by 47.6 per cent – made up almost a fifth (19.8 per cent ) of the market. Battery and plug-in hybrid electric cars had a bumper year, together accounting for more than one in 10 registrations – up from around one in 30 in 2019. Demand for battery-electric vehicles (BEVs) grew by 185.9 per cent to 108,205 units, while registrations of plug-in hybrids (PHEVs) went up by 91.2 per cent to 66,877. More than two-thirds of these registrations – 68 per cent – were for company cars, indicating that private buyers need stronger incentives to make the switch, as well as more investment in charging infrastructure, especially public on-street charging, said the SMMT. Chief executive Mike Hawes said: ‘2020 will be seen as a “lost year” for automotive, with the sector under pandemic-enforced shutdown for much of the year and uncertainty over future trading conditions taking their toll. However, with the rollout of vaccines and clarity over our new relationship with the EU, we must make 2021 a year of recovery. ‘With manufacturers bringing record numbers of electrified vehicles to market over the coming months, we will work with the government to encourage drivers to make the switch, while promoting investment in our globally renowned manufacturing base.’
2020 will be seen as a ‘lost year’ for automotive, with the sector under shutdown for much of the year. Mike Hawes 12 | CarDealerMag.co.uk
TOP
BEST-SELLING MANUFACTURERS OF 2020 Ford
152,777
Volkswagen
148,338
BMW
115,476
Mercedes-Benz
110,883
Audi
107,842
Vauxhall
95,444
Toyota
91,793
Nissan
71,932
Kia
70,537
Skoda
58,693
BOTTOM
LOWEST-SELLING MANUFACTURERS OF 2020 Abarth
2,349
Alfa Romeo
2,107
SsangYong
1,488
Smart
1,377
Bentley
1,337
Subaru
951
Polestar
850
Maserati
585
Cupra
162
Alpine
105
Van registrations LCV news: p64
FULL-YEAR FIGURES FOR 2020 Marque
December 2020
December 2019
2020
2019
% market share
Abarth
162
Alfa Romeo
Whole of 2020 against the whole of 2019
% market share
% change
0.11
-1.82
2,349
0.12
165
285
0.21
202
0.14
41.09
7
0.01
9
0.01
-22.22
7,435
5.60
8,701
5.84
-14.55
144
0.11
186
0.12
-22.58
10,305
7.77
14,117
9.47
-27.00
0
0.00
0
0.00
0.00
Citroen
1,717
1.29
2,901
1.95
Cupra
107
0.08
0
0.00
Dacia
363
0.27
2,357
DS
243
0.18
676
Alpine Audi Bentley BMW Chevrolet
Fiat Ford
2020
% market share
2019
0.14
3,448
2,107
0.13
3,413
105
0.01
171
107,842
6.61
138,924
1,337
0.08
1,595
115,476
7.08
0
0.00
-40.81
28,059
0.00
162
1.58
-84.60
0.45
-64.05
% market share
% change
0.15
-31.87
0.15
-38.27
0.01 -38.60 Figures supplied by SMMT 6.01
-22.37
0.07
-16.18
169,753
7.34
-31.97
62
0.00
0.00
1.72
50,806
2.20
-44.77
0.01
0
0.00
0.00
18,918
1.16
30,951
1.34
-38.88
2,379
0.15
4,299
0.19
-44.66
902
0.68
1,833
1.23
-50.79
19,253
1.18
29,890
1.29
-35.59
11,479
8.65
15,030
10.09
-23.63
152,777
9.37
236,137
10.22
-35.30
Honda
1,391
1.05
2,796
1.88
-50.25
27,297
1.67
43,913
1.90
-37.84
Hyundai
3,366
2.54
3,801
2.55
-11.44
47,507
2.91
83,284
3.60
-42.96
Infiniti
0
0.00
0
0.00
0.00
0
0.00
292
0.01
0.00
Jaguar
3,386
2.55
1,855
1.24
82.53
25,513
1.56
36,069
1.56
-29.27 -25.09
Jeep
534
0.40
373
0.25
43.16
4,639
0.28
6,193
0.27
Kia
3,589
2.70
4,980
3.34
-27.93
70,537
4.32
97,323
4.21
-27.52
Land Rover
4,548
3.43
4,316
2.90
5.38
58,505
3.59
76,546
3.31
-23.57
749
0.56
745
0.50
0.54
13,727
0.84
15,713
0.68
-12.64
Lexus Maserati
59
0.04
52
0.03
13.46
585
0.04
933
0.04
-37.30
Mazda
1,275
0.96
2,327
1.56
-45.21
22,742
1.39
40,148
1.74
-43.35
Mercedes-Benz
7,480
5.64
9,623
6.46
-22.27
110,883
6.80
171,823
7.43
-35.47
MG
1,421
1.07
1,702
1.14
-16.51
18,415
1.13
13,075
0.57
40.84
Mini
4,101
3.09
6,123
4.11
-33.02
46,109
2.83
64,884
2.81
-28.94
531
0.40
793
0.53
-33.04
9,076
0.56
16,199
0.70
-43.97
7,124
5.37
5,309
3.56
34.19
71,932
4.41
92,372
4.00
-22.13
5,386
4.06
5,719
3.84
-5.82
57,186
3.51
80,851
3.50
-29.27
Mitsubishi Nissan Peugeot Polestar
242
0.18
0
0.00
0.00
850
0.05
0
0.00
0.00
Porsche
2,180
1.64
1,740
1.17
25.29
14,284
0.88
15,257
0.66
-6.38
Renault
1,799
1.36
4,701
3.16
-61.73
42,740
2.62
59,132
2.56
-27.72
Seat
4,176
3.15
3,693
2.48
13.08
45,419
2.78
68,798
2.98
-33.98
Skoda
4,881
3.68
5,799
3.89
-15.83
58,693
3.60
75,053
3.25
-21.80
Smart
89
0.07
38
0.03
134.21
1,377
0.08
4,022
0.17
-65.76
SsangYong
65
0.05
72
0.05
-9.72
1,488
0.09
1,930
0.08
-22.90
Subaru
128
0.10
708
0.48
-81.92
951
0.06
2,997
0.13
-68.27
Suzuki
1,279
0.96
2,767
1.86
-53.78
19,838
1.22
35,065
1.52
-43.43
Toyota
5,711
4.30
4,726
3.17
20.84
91,793
5.63
105,192
4.55
-12.74
Vauxhall
7,283
5.49
6,212
4.17
17.24
95,444
5.85
159,830
6.92
-40.28
15,635
11.78
14,687
9.86
6.45
148,338
9.09
200,771
8.69
-26.12
4,541
3.42
3,941
2.65
15.22
46,408
2.85
56,208
2.43
-17.44
184
0.14
349
0.23
-47.28
1,938
0.12
3,183
0.14
-39.11
6,400
4.82
2,873
1.93
122.76
26,086
1.60
14,635
0.63
78.24
132,682
100
148,997
100
-10.95
1,631,064
100
2,311,140
100
-29.43
Volkswagen Volvo Other British Other imports Total
UPS& DOWNS COMPARING 2020’S FIGURES WITH 2019’S
-45% +41% DS
MG
Turn over page for analysis and comment CarDealerMag.co.uk | 13
DASHBOARD.
COMMENTS
More pain lies ahead in short term but there is still lots of hope – experts react to latest new car figures Senior industry executives saw reasons to be cheerful over the next 12 months as they shared their thoughts with Car Dealer.
Deal means stable supply and pricing
Positive trends will gain momentum
Expect to see pent-up demand
Beacon of hope amid the gloom
James Fairclough CEO AA Cars
Seán Kemple Managing director Close Brothers Motor Finance
James Hind Founder and CEO Carwow
Alex Buttle Director Motorway.co.uk
‘The run-up to Christmas is traditionally a hard month in which to lure people to the forecourts, and the tough lockdown restrictions imposed across the UK at the end of 2020 ensured this December was no exception. ‘Unfortunately, the announcement of a new national lockdown is likely to hold back sales at the start of this year too. Nevertheless, many dealers will be reassured by the confirmation that car imports from the EU will remain tariff-free under the post-Brexit trade deal, which will help ensure stable supply and pricing for customers once they return to the forecourts.’
‘While Christmas Eve gave us a glimmer of hope in the form of a trade deal with the EU, the new year now brings fresh challenges. ‘The national lockdowns will put pressure on showrooms across the country, and we must wait with bated breath to see the finer detail of economic support for consumers and businesses. ‘But the sector has proved itself to be resilient, and there are positive trends that will gain momentum in 2021. ‘The surge in demand for electric vehicles is well under way, partially driven by the 2030 ban on new petrol and diesel cars.’
‘The majority of new car buyers still want to see and test-drive their cars before committing to such a substantial outlay, and the inability to do that throughout so many months during 2020 has undoubtedly had a huge impact on the industry. ‘Factories being forced to shut manufacturing and production also dented the roll-out of new vehicles, with dealers having far fewer new cars in stock to choose from, alongside longer waiting times. Pent-up demand is expected from consumers hungry to reward themselves for a year of frugality and limited options to spend.’
‘The car industry really needs a strong start to 2021, and the decision to place England into another lockdown will likely expunge any hope of a swift recovery for the new car trade. ‘But it’s not all gloom. Healthy electric car registrations are once again a beacon of hope. ‘And the green car revolution gathered pace in 2020 as electric and hybrid registrations surpassed diesel sales for the first year ever. ‘The used car market is likely to be the main beneficiary of a slow new car market, as buyers look to find more value with their purchases.’
14 | CarDealerMag.co.uk
Sales should bounce back
Significantly better than many feared
2020 showed how resourceful we are
Ian Plummer Commercial director Auto Trader
Jim Holder Editorial director What Car?
Karen Hilton Chief commercial officer Heycar
‘The automotive industry had a lot thrown at it last year, with Covid restrictions closing showrooms, trading tariffs in question as Brexit loomed, and the government changing the goalposts again on the sale of new ICE vehicles, so it’s not surprising that new car sales have taken a hit. ‘There have, however, been some bright spots, as we’ve seen a healthy rise in the number of EVs on our roads. ‘As we look ahead to 2021, notwithstanding negative dents to sales from the current and any further national lockdowns, data suggests that sales will bounce back to circa two million levels.’
‘The lessons of a tough 2020 ensure the industry goes into 2021 better prepared for the challenges it now faces. ‘This should prevent sales falling off the cliff edge, as we saw during the first lockdown in March. ‘With retailers forced to close their doors for close to three months between March and June, and with varying restrictions imposed throughout the rest of the year, the challenges have been immense. ‘In that context, a 29.4 per cent decline in registrations for the year is actually significantly better than many feared back in May.’
‘The disruption and uncertainty brought on by the coronavirus outbreak resulted in a uniquely challenging marketplace in 2020. ‘As forecourts shut once again as the entire UK returns to lockdown, the industry is set for more pain in the early part of the year. ‘But if 2020 has proved one thing, it is how resourceful the sector can be. ‘In the grip of its biggest crisis in generations, dealers have responded to it impressively, finding new and innovative ways to engage with customers by upping their game in the digital arena.’
Stage set for further EV growth
A silver lining to the clouds ahead
Breakthrough year for EVs
Michael Woodward UK automotive lead Deloitte
Karen Johnson Head of retail and wholesale Barclays Corporate Banking
Poppy Welch Head Go Ultra Low
‘Many manufacturers and dealers remain optimistic for the year ahead, in spite of the latest UK lockdown measures. ‘Whilst showrooms will be closed as in previous lockdowns, manufacturing facilities are expected to remain open this time. ‘For dealers, click-andcollect, MOT and repair services also remain permitted, offering a valuable, and profitable, lifeline. ‘2020 was a significant year for electric vehicles, and the stage is set for further growth, with the government and manufacturers showing significant commitment to EVs.’
‘A number of manufacturers were reported to have pushed forward the registration of cars in December to get ahead of the Brexit transition deadline. ‘Some consumers may also have decided to make purchases to guarantee prices had there been a no deal. However, neither was enough to prevent a decline in registrations versus December 2019. Dealers will be relying on their improvements to e-commerce offerings during the first lockdown to cope with this latest set of restrictions. ‘The experience gained from previous lockdowns may provide at least a thin silver lining to the clouds ahead.’
‘2020 will be remembered as the breakthrough year for electric vehicles. ‘After a ninth successive year of growth in EV registrations, we’ve now seen the market share rise to 10.7 per cent. ‘This has been made possible in large part by the government’s ongoing support and long-term vision, combined with the automotive industry’s commitment to developing a wide range of zero-emission vehicles that are clearly convincing the public with their performance, financial and environmental credentials.’
FAVOURITES
Bumper year for pure electrics CAR dealers shifted a total of 1.63m new cars in 2020, despite showrooms being shut for a fair bit of the year. The impact of the coronavirus pandemic saw registrations drop by 680,076 units – the lowest level of registrations since 1992, SMMT figures show. Demand fell across all sectors apart from specialist sports, which grew by seven per cent. Diesel and MHEV (mild-hybrid) diesel declined by 47.6 per cent but pure electrics and plug-in hybrids accounted for one in 10 registrations. It was a bumper year particularly for pure electrics, as not only was demand up by 186 per cent, but the Tesla Model 3 was the best-selling car in April and December. Overall, though, what were the best-selling cars in 2020? Here we’ve compiled a list of the top 10 most popular models.
TOP
BEST-SELLING CARS OF 2020 Ford Fiesta
49,174
Vauxhall Corsa
46,439
Volkswagen Golf
43,109
Ford Focus
39,372
Mercedes-Benz A-Class
37,608
Nissan Qashqai
33,972
Mini
31,233
Volkswagen Polo
26,965
Ford Puma
26,294
Volvo XC40
25,023
CarDealerMag.co.uk | 15
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Latest lockdown means dealers are having to make tough decisions
W
There’s a growing unease that encouraging people out of their homes to buy a car right now isn’t necessarily the right thing to do.
ith the country bored out of their minds as they stay at home under a third lockdown, it’s been interesting to watch from the sidelines a changing of sentiment among the motor trade. During lockdown one there was an overwhelming sense of frustration, but everyone was in agreement a lockdown was needed. That was echoed by the number of people on the streets – when I went for a daily walk there was no one around. That changed under lockdown 2.0. It was the lockdown that wasn’t really a lockdown. The rules were less strict, children were still at school and people carried on pretty much as normal. That was well demonstrated by the fact that more than one dealer told me they’d beaten sales from the same month in 2019 while only operating via click-andcollect. The motor trade was continuing as close to normal as possible without showrooms being open. Some 70 per cent of normal trade was carried out, and with a distinct threeweek deadline to the restrictions, everyone was far more upbeat. This time round, things are different. The messaging from the government has changed, the news reports are full of hospitals being overwhelmed, and it feels like we all need to play our part. This is starting to become apparent among the motor trade, too. Under lockdown 3.0, there are more dealers questioning whether they really should be open. Some are admitting they don’t think they should be selling cars, and in a survey of more than 750 people on the Car Dealer website a third (33 per cent) said they didn’t think it was morally right to be selling vehicles at the moment. That’s a big number, and it comes as there’s increasing scrutiny of click-and-collect services. Some other industries and businesses, such as John Lewis, are already canning their services to stop ‘unnecessary travel’, and there was a worrying time for dealers when Scotland announced that it would be stopping it, too. It eventually transpired that dealers weren’t included, and leaving home to collect a ‘newly purchased vehicle’ was given the all-clear, but that still left some dealers questioning whether it was the right thing to do. One family-owned dealership in England has called time on click-and-collect. Pebley Beach boss Dominic Threlfall said he felt that stopping selling cars this way was right as cases remained high near his Suzuki and Hyundai dealerships in Swindon. ‘I’ve been uncomfortable allowing click-and-collect for car sales,’ he told the Swindon Advertiser. ‘This does have a massive impact on our business, but I think it is the right thing to do.’ And in private conversations I’ve had with dealer group bosses of all sizes, there’s a growing unease that encouraging people out of their homes to buy a car right now isn’t necessarily the right thing to do. But that’s not what shareholders want to hear. The unease has led to a backlash at manufacturer targets. Car makers are still pushing their dealers to hit quarterly targets, and one salesman messaged me privately to say the lack of walk-in customers or inquiries meant they were being forced to hit the phones hard. He said he was calling up customers to try to entice them into changing their car early – something he said felt ‘wrong’. I’m a huge believer in the fact we need to keep the economy moving. Selling cars keeps a huge industry churning – an industry that employs hundreds of thousands of people. But I can see why some businesses are asking themselves difficult questions. Now there appears to be concern among some that even MOTs should be stopped again and another extension given. With infection rates seemingly coming down and the vaccine roll-out continuing apace, the decisions car dealers need to make right now are very tough indeed. Many have asked what I’d do if I were running a car dealership and my answer has always been the same: Dealers are operating in an incredibly safe and secure way and it’s simply not up to them to decide if the car purchase is essential to the buyer. The only person who can decide that is the one who’s handing over the money.
Speaking out
COMMENT
JAMES BAGGOTT
AGAINST OUR BETTER JUDGMENT, WE LET THE CEO HAVE HIS SAY EACH MONTH James Baggott founded Car Dealer Magazine and is the 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. CarDealerMag.co.uk | 17
Big Mike OUR MAN ON THE INSIDE SHARES HIS THOUGHTS ON THE CAR BUSINESS
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. 18 | CarDealerMag.co.uk
COMMENT
Those were the days – even if the quality was streets behind
T
here’s not much going on out there at the moment, so to avoid the tumbleweed, this month I’m taking a ride down Memory Lane to a time where we didn’t have to dress up like a highwayman to go out of the front door and there wasn’t a fluorescent orange lunatic trying to destroy global democracy because he’s a bad loser. So yes, it’s on with the rose-tinted specs but then immediately off with them because first of all, I can’t see a damned thing without my normal glasses on, and second, because the good old days weren’t always that good. As a car dealer, at least in the modern world you can be fairly confident that once a car leaves your forecourt, the chances of seeing it again with a raging customer behind the wheel are few and far between. And that even happens at my end of the trade – where more of the buyers I see are a car’s last owners rather than its first. After all, there’ll always be a market for previously cherished and sometimes too-well-loved old motors, because you can buy them for cash and not worry too much about the cost of their upkeep. Or their upkeep at all, for that matter. Today’s old bangers will still run forever if you let them, especially if they’re Japanese or Fords. The downside to both of those is that they’ll eventually succumb to corrosion, which doesn’t seem to affect unreliable cars at all. A lot of older German rubbish, for example, will still look factory-fresh well into their second decade but are nothing more than garden ornaments when the gearboxes pack up or the electrics go on strike. Likewise, you never see a rusty old Renault, but that’s often because the dashboard electrics have gone west well before the ferrous oxide makes an appearance. There are, though, some wonderfully dependable gems that you can’t go wrong with at my end of the trade. A 1.6-litre eight-valve petrol Vauxhall might not be the most desirable car you can think of, but a Mk 4 Astra, Corsa or Meriva will keep on going through a nuclear apocalypse providing you keep tipping oil into it. I buy them all the time and recommend them to any of my customers who have no interest in cars, because as pure transport they’re great. Then there are the old VW diesels, not to be confused with the above-named German rubbish. Anything with the engine in it might sound like a nervous skeleton shivering outside the headteacher’s office when at idle, but you can run them on chip fat and they’ll still do half a million miles. Older Saabs and Volvos are good news too, although the best Volvo of recent times was actually the original S40 – a car that was based on the Mitsubishi Carisma. Don’t tell the Volvo purists though or they’ll come and bore you to an agonising death for even thinking of it as a Volvo in the first place. As a used car dealer, I don’t have half the hassle I used to get from returning customers expecting me to put right everything that had packed up through old age and general wear and tear, and for that I’m ever grateful, because it’s actually quite a novelty for me, despite the fact that I began my career in new car retail. In fairness, my main dealer days were in the early Eighties through to the early Nineties, and I worked for some franchises whose brands were renowned for their interesting approach to letting their customers do their development work for them. Austin Rover at first, then Fiat, Citroen, Lada, back to Rover and finally Kia, but in the days when they made recycled Mazdas with whitewall tyres. Indeed, I’m one of only a handful of people in the world to have ever owned a Kia Pride van, but we’ll discuss that one another time. In terms of overall quality, Lada was the worst, but the good thing about that was that anyone who bought a Lada wasn’t expecting perfection to start with, so if something fell off in the first few weeks of ownership, they either brought it back to us and laughed it off or just gaffer-taped it back on themselves. Lada owners were brilliant – completely pragmatic,
It’s on with the rose-tinted specs but then immediately off with them because first of all, I can’t see a damned thing without my normal glasses on.
usually massively laid back and completely accepting of the fact that they’d bought a car they knew was rubbish. Most of them had a great sense of humour, too, but then you needed one. And customer loyalty was astonishing. Owning a Lada was like being part of a club. Because Lada owners’ expectations were in the gutter, it was never an issue. Selling new Fiats in the mid-1980s, though, was. Back then, the Italian brand was on a bit of a roll. It had the Panda and the Uno, both superb little cars, and the buying public were looking at them as genuine alternatives to Ford Fiestas and Vauxhall Novas. They were quite easy to sell, but they often led to customers coming back disappointed as trivial things went wrong with them. I experienced that disappointment firsthand one day when delivering a new Uno to a customer who had asked us to take it to his home as we were late doing the PDI (we actually weren’t; it’s just that the PDI had thrown up so much rectification work that we were late getting it out of the door). I set off across the Birmingham Ring Road at dusk in a new Uno and after three or four miles I noticed something unusual flickering in my field of vision, like an occasional flare. At first I put it down to reflections from the street lights on the car’s shiny new paint, but it carried on, so I pulled over to check that it wasn’t anything wrong with the car. It was. The driver’s side headlight had – quite literally – popped out of its socket and was lolling around like a cartoon eyeball, meaning that every time I went over a bump in the road it would swagger around like a drunkard looking for a bar stool. So being the professional and customer-focused car salesman that I am, I slotted it back into place, gave it a bloody good whack with my right shoe and checked it wasn’t going to fall out again before delivering it to the customer – who brought it back to us the following Tuesday with its comedy searchlight once again displaced. But that wasn’t the worst one. The worst was a Fiat Croma (remember those?), which some gullible retail customer had decided was a safer place in which to put their money than a Ford Granada (it wasn’t), Vauxhall Carlton (ditto) or Rover 800 (er…maybe). On the day of collection, the proud buyer turned up for his new pride and joy, only to drive it off the forecourt, over a speed hump and no further, as no sooner did he hit the traffic-calming device than the windscreen fell out. Happy days indeed. It’s kind of perverse, but I miss them.
Lada owners were brilliant – completely pragmatic, usually massively laid back and completely accepting of the fact that they’d bought a car they knew was rubbish.
CarDealerMag.co.uk | 19
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To succeed in the future, businesses must learn from the past 12 months
I
Consumers will happily accept small defects but on the clear proviso the faults are disclosed before the point of order.
just can’t do it – I can’t write yet another article about how Covid is impacting on the motor industry as, like all of us, I’m just bored and frustrated at the whole mess. However, with almost a year of trading in pandemic circumstances, I think we can look to the trends that may be here to stay beyond the end of the crisis. I have read many articles which imply that the motor trade have never heard of online retailing, and recently called out Cazoo founder Alex Chesterman for making that very claim, but what has changed is the acceptance that your investment and skill at physical retailing needs to match your digital capability. That’s not to say that all dealers or indeed manufacturers have platforms which are fit for purpose at the time of writing, but that I would hope boardroom conversations about capital investment are not limited to site acquisition or development. Big dealer groups and manufacturers should take a leaf from the book of Cazoo or Carzam and invest significantly in websites, preparation processes and people who are completely geared to online retailing. Adding slots on Auto Trader or taking better photographs won’t be enough as this trend accelerates. One of the fears for retailers around online trading was the impact of distance-selling regulations. Nothing there has changed, but there’s an acceptance that if you want to participate fully in a digital sales channel, this is a potential cost for which it may be prudent to budget. Similarly, declaration of known paint issues is something that Cazoo especially has mastered. Consumers will happily accept small defects but on the clear proviso the faults are disclosed before the point of order. Manufacturer used car programmes can imply that every used car is perfect but that is simply not the case, particularly in paint or trim condition, so franchised dealers need to ensure their sales process is robust around communicating known problems with buyers. New car deals are also becoming more uniform and streamlined across franchised networks. Gone are the days where ad-hoc bonuses were paid to dealers based on targets or scale. Compliance and competition rules both legally and within franchise agreements mean that advertised deals between operators within the same franchise are more consistent than they once were. New car margins on hybrid vehicles are also less lucrative, so this looks to be a trend that continues. The one potential issue on the horizon is the emergence of lease operators such as Arval or ALD into the private leasing market. Not all dealers have access to these funding systems, so there is a potential peril here, but they are a peril to the wider market and, as I have said before, manufacturers would do well to choose their bedfellows carefully. The sales departments are not the only parts of the business that need to think about the future. There are some amazing waiting areas in dealerships up and down the land, complete with baristas and cakes, but what will the appetite be for consumers to wait for their service in future? Businesses need to adapt by being more flexible and efficient on waiting jobs or at least have more collection and delivery provision. Bodyshops have also felt the effect of fewer collisions and less willingness on the part of insurers to write off vehicles. Pivoting to smart repair operations or manufacturer approval business may be the only way to survive in the long term. One thing is clear: businesses will not be able to succeed in the future without a creative and forward-thinking attitude that takes lessons from the past 12 months.
Trader Tales
COMMENT
JAMES LITTON
CASTING AN EXPERIENCED EYE ON THE WIDE AND CHALLENGING WORLD OF MOTOR SALES
James Litton is an automotive retail consultant who always has something to say about the industry he loves. CarDealerMag.co.uk | 21
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USED CAR AWARDS
Meet the finalists for the 2020 Used Car Awards!
T
hese are the names that will go head to head for a winners place or one of two highly commended slots in each category of the Used Car Awards. The shortlist has been created after an intense four-week period of mystery shopping where all of the companies on our Nominations List were subjected to rigorous testing. Our team of mystery shoppers enquired on cars remotely and, in some cases, in person to mark the dealerships vying for our top awards. And now the judges have interrogated the results and created our Used Car Awards Shortlist of the best used car dealerships, personnel, products and cars in the UK. The winners will be unveiled in a special online Used Car Awards ceremony hosted by Wheeler Dealer Mike Brewer and Car Dealer editor in chief James Baggott.
It’s very apparent how dealers have adapted their businesses to the many issues surrounding the Covid-19 pandemic. Lead mystery shopper
MYSTERY SHOPPING Our lead mystery shopper said: ‘It’s very apparent how dealers have adapted their businesses to the many issues surrounding the Covid-19 pandemic. ‘From updated websites, more improved use of video and personal videos sent via email and WhatsApp, we’ve been very impressed with the personal service offered by the best dealers. ‘Despite the pandemic, car dealers are rising to the occasion to offer a personal service that in this remote, digitally-focussed world feels all the more personal.’ Our mystery shoppers praised many dealers for ‘going above and beyond’ to get personal messages to them – some within minutes of making an enquiry on a used car. The original nominations list was created after assessing the huge number of entries for this year’s awards using Google and Auto Trader reviews, other online feedback, nomination citations, as well as the views of the judges. Good luck to all those shortlisted in the next stage of the final stages of the awards.
AWARDS CEREMONY The Used Car Awards 2020 will be broadcast online on February 5 at 6pm
Turn over page to see full list of shortlisted companies CarDealerMag.co.uk | 23
SHORTLIST AWARD CATEGORIES USED CAR AWARDS
Dealers’ Dealer
Used Car Dealership Group
Used Car Dealer Principal
Social Media User
Used Car Product
Used Car Sales Team
GVE London Marshall Motor Group Prestige Cars Kent SW Car Supermarket
Autoglym Lifeshine Cap HPI GardX B 2 See Motorway
ESP Cars, Long Eaton Kiteley Motors, Stansted Taggarts Jaguar, Glasgow White Dove Skoda, Cardiff
Use of Video
Used Car Website
Used Car Dealership – Up To 50 Cars
Specialist Used Car Dealership
Used Car Online Sales Experience
Sponsored by Dealer Auction Daksh Gupta, Marshall Motor Group Jamie Caple, Car Quay John O’Hanlon, Waylands Automotive Sean Kelly, Vines BMW Will Blackshaw, Blackshaws
Sponsored by Marketing Delivery SocialStock Angus MacKinnon
Sponsored by G3 Vehicle Auctions Beck Evans, Kent High Peak Autos, Stockport Premier GT, West Sussex Prestige Diesels & Sports, Portsmouth Romans International, Banstead
Sponsored by Mann Island Finance BMW and Mini Direct, Worcester Broadoak Performance Cars, Canterbury Otter Motors, Ottery St Mary Premier GT, West Sussex R Symons, New Milton
Future Star Award
Sponsored by Advantage Finance Anthony Foran, Marshall Volvo Welwyn Garden City Ben Goodwin, Big Motoring World Enfield Cavin Sewell, Marshall Mini Bournemouth Megan Vladimirovs, Car Quay Toby Harris, Otter Motors
Used Car Supermarket Sponsored by City Auction Group Big Motoring World Carbase Carshop Motorpoint SW Car Supermarket
24 | CarDealerMag.co.uk
Sponsored by Motorway Hendy Group Marshall Motor Group Snows TrustFord Waylands Automotive
Sponsored by Händler Protect Auto Trader
Sponsored by CarGurus Big Motoring World Carbase Croyland Car Megastore Direct Car Sales, Kent George Kingsley, Colchester
Sponsored by Aston Barclay Hilton Garage Vertu Motors Snows Swansway Garages Batchelors Motor Group
Sponsored by The WMS Group Ali Ekram, Marshall Volvo Welwyn Garden City Scott Brown, Big Motoring World, Blue Bell Hill Sam Evans, Beck Evans Paul Bennett, Pilgrim Motorsports Scott Shilcock, Prestige Diesels & Sports, Portsmouth
Sponsored by CarGurus Browns Car Company, Maldon
Sponsored by Trade To Trade Underwriting Car-Pod, Southampton Crompton Way Motors, Bolton Prestige Diesels & Sports, Portsmouth R Symons, New Milton Supermini UK, Nottingham
Used Car Dealership – 51-100 Cars Sponsored by Black Horse Angus MacKinnon, Uttoxeter Alyn Brewis, Ashington ASK Motors, Walsall Emerald House of Cars, Wednesbury RS Car Sales, Sandbach
Used Car Dealership – Over 100 Cars Sponsored by Black Horse Beck Evans, Sidcup
Car Quay, Derby ESP Cars, Nottingham MB Motors, Ballymena Redline Specialist Cars, Knaresborough
Service & Repair Outlet
Sponsored by Händler Protect Anderson Clark Motor Repairs, Inverness Avia Autos, Bridgend Chichester Cars, Chichester Just Nice Clean Cars, Warwick Martin Brothers Motor Company, Hebburn
Used Car Customer Care
Sponsored by RAC Dealer Network East Devon Automotive, Sidmouth Motor Connect, Northwich Quest Motor Group, Various Redline Specialist Cars, Knaresborough Westgrove Cars, Addlestone
Newcomer Dealership
Sponsored by Automotive Compliance Browns Car Company, Maldon D9 Specialist Cars, Wickham Bishops Motorswift, Weston-super-Mare Norwich Van Centre, Norwich The German Car Group, Ottery St Mary
Outstanding Achievement Sponsored by Black Horse No nomination list revealed
Lifetime Achievement Sponsored by Lawgistics No nomination list revealed
MANUFACTURER AWARDS Used Small Car
Used SUV
City Auction Group Audi A1 (2018-) Ford Fiesta (2017-) Seat Ibiza (2017-) Skoda Fabia (2015-) Suzuki Swift (2017-)
City Auction Group Audi Q7 (2015-) Seat Ateca (2016) Skoda Karoq (2017-) Peugeot 5008 (2017-) Volkswagen Touareg (2018-)
Used Mid-Sized Car
Used AFV
Used Executive Car
Used Car of the Year
Sponsored by
Sponsored by City Auction Group Ford Focus (2018-) Hyundai i30 (2017-) Kia Ceed (2018-) Mazda 3 (2019-) Mercedes A-Class (2018-)
Sponsored by City Auction Group Alfa Romeo Giulia (2016-) Audi A4 (2015-) BMW 5 Series (2017-) Skoda Superb (2015-) Volvo S90 (2016-)
Used Sports Car
Sponsored by City Auction Group Audi TT (2014-) Mazda MX-5 (2015-) Toyota GT86 (2012-) Jaguar F-Type (2013-) Porsche 911 (2012-2019)
Sponsored by
Sponsored by City Auction Group BMW i3 (2013-) Hyundai Ioniq (2016-) Nissan Leaf (2017-) Jaguar I-Pace (2018-) Kia Niro (2016-)
Sponsored by City Auction Group Chosen by judges from our category winners
Manufacturer Used Car Scheme Sponsored by Warrantywise Audi Ford Kia Volkswagen Volvo
AWARDS CEREMONY The Used Car Awards 2020 will be broadcast online on February 5 at 6pm CarDealerMag.co.uk | 25
ADVERTISING FEATURE
EXCLUSIVE
Isuzu redefines the pick-up with the All-New D-Max Key prospects are among the guests as Isuzu looks to fill dealer slots
I
suzu dealers, key prospects and other special guests were given an exclusive sneak preview of the new D-Max that is coming to the UK in 2021. The Covid-secure events – held over four days at its UK HQ – proved hugely successful, with people being allowed to touch as well as see the new pick-up. No other European distributor has been able to let dealers see the new model so far, and anyone who couldn’t make it along was offered live virtual walkrounds of the vehicle. Key journalists, influencers and fleet customers also came along, while a VIP day was held separately for the prospect dealers, which proved beneficial as Isuzu has opportunities for dealers in a number of towns and cities and was able to fill a number of slots. UK managing director William Brown told Car Dealer: ‘We are so excited to receive this new model. It is a big step forward for Isuzu and will be the most advanced pick-up on sale in the UK, setting new standards in the sector. Because it is a simple franchise to operate, it is very easy to integrate into a successful existing operation, whether it be cars, 4x4s or LCVs. ‘What we’re looking for in a new dealer is someone who is dedicated to our brand within their existing business. We can do all of the training. Most of the time, a pick-up is being bought to be used as a pick-up and that’s why it’s an easy product to sell. That’s where we win.’ He emphasised how approachable Isuzu was, adding: ‘We’re not just interested in our dealers’ performance. For us, everything we do for our dealers has to be simple, fun and profitable. It’s all about making business as simple as possible, whether it be trading terms, campaigns or communications.’
What did people think?
Dealer ‘Standout features – comfort, technology, a lot of new features that have really upped the game.’
Journalist ‘Really impressed. I’m struggling to think of something I don’t like!’
Influencers ‘The fact you have the latest safety equipment across the entire range is great to see.’
Areas ripe for an Isuzu dealer Kings Lynn Norwich North Birmingham Brighton Kent/Maidstone
Fleet customers ‘I can’t believe all this is standard. I like it a lot. I see huge benefits for me as fleet manager and, more importantly, for our drivers.’
For more details about becoming an Isuzu Pick-Up Professional, call Melissa Butcher on 0121 730 8073 or email mbutcher@isuzu.co.uk 26 | CarDealerMag.co.uk
Breakout for Ben Get your trainers and bikes at the ready and Breakout for Ben this February! Join us in a huge virtual event walking, cycling and even swimming the distance of famous Motor Circuits across the UK. Get involved to raise much needed funds for Ben and the vital work that we do supporting automotive people. Our industry partners have donated the first £500k, so this is your chance to show your support and help us reach our £1 million target. Get on the Road to £1m and Breakout for Ben.
Ben – Motor and Allied Trades Benevolent Fund. A charity registered in England and Wales No. 297877 and Scotland SCO39842.
ben.org.uk /BreakoutForBen
CarDealerMag.co.uk | 27
DASHBOARD INSURANCE
NEWS DIGEST HERE ARE TASTERS OF STORIES YOU MAY HAVE MISSED
Pandemic payouts likely after appeal CAR dealers denied payouts under business interruption insurance policies could be in line for settlements after all. The Supreme Court has ‘substantially allowed’ an appeal brought by the Financial Conduct Authority in a landmark £1.2bn legal battle over businesses’ ability to claim on insurance for coronavirus-related disruption. Many car dealers had been unable to claim when they were forced to shut by Covid restrictions as insurers said the pandemic wasn’t covered.
AWARD
CRACKDOWN
Car dealers warned over mystery-shop attempts by officials to catch out coronavirus rule-breakers CAR dealers are being warned that authorities are trying to catch out Covid rule-breakers with a series of mystery shops across the country. Trading Standards, the police plus the Health and Safety Executive have targeted dealers, with Marshall Motor Group boss Daksh Gupta revealing that the crackdowns were happening ‘everywhere’. He said he’d dealt with 10 since the last lockdown. IMDA chairman Umesh Samani, meanwhile, said many members had fielded strange phone calls they think are attempts to catch them out. Click on the image for the full story.
MERGER
Rebecca is overall inspiring woman AUTO Trader UK sales director Rebecca Clark has been named the Overall Inspiring Automotive Woman of the Year in the Automotive 30% Club’s 2020 awards. She scooped the top award because of the strength of her commitment to gender balance, said judges, and was one of 30 women to be awarded gongs that celebrate and recognise the unsung female heroes of the automotive industry. The 2020 awards attracted 225 nominations. 28 | CarDealerMag.co.uk
Stellantis shares rise as trading begins
NEW car giant Stellantis has been launched on the Milan, Paris and New York stock exchanges. Formed out of the recent merger of Groupe PSA and FCA, it is the world’s fourth-largest car company. Stellantis shares rose 2.5 per cent in Milan in early trading to 13.18 euros (circa £11.67). Chief executive Carlos Tavares said during a virtual bell-ringing ceremony that the merger had created 25bn euros (circa £22.1bn) in shareholder value.
NEW CARS
Selling cars keeps a huge industry churning. But I can see why some businesses are asking themselves difficult questions. James Baggott p17
Sales in Europe fell by nearly a quarter
NEW car sales in Europe dropped by nearly a quarter in 2020 as the Covid-19 pandemic provoked the worst crisis ever to hit the European car industry. Registrations plunged by 23.7 per cent, or three million vehicles, to 9.9m units, according to figures from the European Automobile Manufacturers Association. December sales were 3.3 per cent lower than in 2019 but performance varied drastically between markets.
CarGurus and PistonHeads amalgamation. Supplier News: p46
Can a small-scale Bugatti have the same-size thrills as the standard car? Ted Welford squeezed into one to find out. Feature: p54
IMPACT
Pebley Beach halts click-and-collect
PEBLEY Beach has halted all clickand-collect car sales amid surging local Covid-19 infection rates. The family-owned business, which runs Hyundai and Suzuki franchises and has sites in Cirencester and Swindon, made the move despite click-and-collect being allowed under the latest lockdown. Boss Dominic Threlfall admitted that it would have a big impact on his business, but he told the Swindon Advertiser that he felt it was the right thing to do.
APPOINTMENT
PARTNERSHIP
Sytner adds Bugatti to brand portfolio
SYTNER Group is adding Bugatti to its portfolio and can already offer aftersales as a fully authorised dealer. The new showroom will be based at Sytner Bentley Manchester in Mobberley Road, Knutsford, Cheshire, and is due to open later this year. To celebrate the partnership, Bugatti sent the new Chiron Pur Sport to the dealership as part of its European Roadshow.
COMPLETION
Paul Willcox is made Hendy paid £4.3m new Vauxhall boss for JLR dealership
VAUXHALL has made former Nissan GB managing director Paul Willcox its new MD as of February 1, replacing Stephen Norman who will take on the role of global senior vicepresident for sales, aftersales and marketing at Opel/Vauxhall. Willcox has been Groupe PSA’s Eurasia senior vice-president since July 2019. He was UK MD for Nissan between 2008 and 2011, Nissan Europe’s senior vice-president for sales & marketing from 2011 to 2013, and its chairman from 2014 to 2018.
Xxx: pXX
HENDY Group plans to invest further and open more car dealerships, despite the coronavirus crisis. It has now completed the acquisition of a JLR dealership in Southampton from Inchcape. Hendy has also revealed it will soon open Renault/Dacia and Lotus dealerships in Eastleigh as well as a further Lotus site in Exeter. The group said the Southampton JLR purchase cost it £4.3m, although originally Inchcape said the sale was for nearly £30m.
T S A C D PO
OM R F M A E THE T EALER CAR DBOUT TALK ATEST THE LAAND NEWSVIEWS IN INTER EGULAR THIS R ST PODCA
AGREEMENT
I set off at dusk in a new Uno and after three or four miles I noticed something unusual flickering in my field of vision, like an occasional flare. Big Mike p18
Flagship Renault store sold for £39m
RENAULT Retail Group has sold its flagship London West showroom for £39m. The Renault-owned company has agreed a short-term, two-year lease back on the premises, pictured via Google Street View, in Concord Road, London, while it relocates. The sale was reported in the group’s 2019 results, recently filed with Companies House. Losses of £2.4m were down on 2018’s £3.5m deficit.
E R E H K C CLI
PAST O T N E T TO LIS ES OF THE EPISODEALER CAR DASTS PODC Turn over page to catch up on more stories
CarDealerMag.co.uk | 29
DASHBOARD EXCLUSIVE
NEWS DIGEST HERE ARE TASTERS OF STORIES YOU MAY HAVE MISSED
Peter Vardy turns to online used cars PETER Vardy has launched an online used car business to rival the likes of Cazoo and Carzam after ending his partnership with Vauxhall to concentrate on second-hand vehicles. The ‘Carz’ used car brand was rolled out from January 1 with a rebranding of two of the group’s used car supermarkets. All six of the group’s Vauxhall franchises will close and become Carz stores too. It comes as Peter Vardy saw its EBITDA profit rise to £11.3m in 2019 – a six per cent increase on 2018’s £10.7m.
HONOUR
END OF AN ERA
Top Renault dealership buys family-run used car business that dates back more than 100 years TOP independent car dealership Mitchells has bought long-established used car business Kerridges. Lowestoft-based Mitchells, which was Groupe Renault UK’s top-performing dealership of 2019, has taken over the third-generation Vauxhall specialist and garage Kerridges, of Halesworth, from current directors brothers Chris and Mark Kerridge, who are retiring, for an undisclosed sum. Matthew HukeJenner, Mitchells MD and owner, said: ‘We will be continuing the Vauxhall heritage but expanding the used car forecourt.’ Pictured from left are Matthew Huke-Jenner, Chris Kerridge and Mark Kerridge
REPORT
Suzuki GB names its top dealer PEARSON of Wemyss Bay has been crowned Suzuki GB’s national dealer of the year. The dealership, pictured via Google Street View, was awarded the honour at the online national dealer conference. Dale Wyatt, director of automobile at Suzuki GB, said: ‘It is an honour to recognise the achievements of our network over the last 12 months. They are made even more important due to market conditions and the heavy restrictions we are currently experiencing.’ 30 | CarDealerMag.co.uk
Carwow cuts losses by more than £1m
CARWOW managed to cut its group losses in 2019 by more than a million pounds to £13.8m. The UK-based car buying comparison site’s newly published group accounts for the year ending December 31, 2019 show it made a pre-tax loss of £13,849,088, against a loss of £15,262,378 the year before. In the report, director James Hind, pictured, said the results reflected increased investment plus ‘improved operational efficiency’.
370
The range in miles of the top-spec version of the Ford Mustang Mach-E – one of the furthest for an EV.
New cars for 2021 p10
DISCUSSIONS
Hyundai and Apple buddy up over EVs
HYUNDAI has said it is in talks with tech giant Apple as the pair look to partner on the development of future electric cars and batteries. The South Korean firm said that ‘Apple and Hyundai are in discussions, but they are at an early stage and nothing has been decided’, in a statement issued to Reuters. Apple has been rumoured to have been working on its own electric car – under the codename Project Titan – since 2014.
What can dealers do during lockdown? Advice: p60
Who doesn’t love a good gadget? We pick out‘Quote.’ five of the best of those that are around for the motorist. Gadgets: p49
LOANS
SsangYong files for court receivership
SSANGYONG has filed for court receivership in South Korea after the car manufacturer couldn’t agree terms to extend loan repayments equivalent to some £40bn. The car maker – which has 65 dealers in the UK operating under SsangYong GB – could face ‘massive disruption’ according to reports. It has up to three months to negotiate with banks and resolve the issues. SsangYong Motors UK is continuing to operate as normal.
MENTAL HEALTH
EXPANSION
Businesses will not be able to succeed in the future without a creative and forward-thinking attitude that takes lessons from the past 12 months. James Litton p21
PRAISE
Seat looks to bring Lookers Stockport some calm into lives is top UK Kia dealer
SEAT is adding a mental health ‘SOS’ QR code to its cars after it was revealed that nearly nine in 10 people in the UK go for a drive for some peace of mind. The manufacturer has teamed up with suicide prevention charity Campaign Against Living Miserably (Calm) to try out the code, which is being put on vanity mirrors of new vehicles. It takes people to a page on Calm’s website that has hints and tips to help with mental health.
LOOKERS Stockport was named Kia’s Dealer of the Year and handed the Sales Excellence Award at the annual dealer awards held digitally. Kia said it had performed exceptionally well across the business and this was the third time it had won Sales Excellence Award in four years. Paul Philpott, president and CEO of Kia Motors UK, said: ‘These awards are testament to the strength, dedication and customer focus of the Kia dealer network.’
Strathmore relocates after £2m refurb
CAR dealer Strathmore has relocated to a new showroom in Perth following its £2m renovation. The new site in Dunkeld Road, a short distance from its former showroom in Arran Road, features the signature Volvo dealership setup with Scandinavian design influences. The move has allowed the dealership to expand with a larger showroom and more cars on display. Norman Leishman, retailer principal, said: ‘We are thrilled to have unveiled our new showroom.’
APPOINTMENT
It’s now Trevor Finn the superdealer...
FORMER Pendragon CEO Trevor Finn has been appointed as a nonexecutive director of Hedin Group AB, just as the Swedish business has acquired all shares in Ford Motor Company’s Swedish subsidiary. In a LinkedIn post, Finn said: ‘I am pleased to join the Hedin board as non-exec director working on our first superdealer. Exciting times ahead as Hedin Group acquires Ford Sweden.’ The purchase gives it 74 dealers in Sweden.
Feature: pXX
BITE-SIZE Profits, losses – and more...
TIPS: Many lessons were learnt in 2020, so we asked some of the businesses working with car dealerships every day for their advice when starting 2021. Click on this text box for key pieces of advice from a selection of automotive industry experts.
RESULTS: Stoneacre Motor Group saw its pre-tax profit plummet by 42 per cent to £9.8m over the past financial year. Its accounts for the year ending April 26, 2020 show the money that it made was down from just over £17m the year before.
LOSS: The Donnelly Group lost nearly two and a quarter million pounds in 2019. In its accounts, recently filed as Donnelly Bros Garages (Dungannon) Ltd, it posted a £2.227m post-tax deficit, which was a huge dip on 2018’s loss of £348,168.
UK: The DVSA has altered how MOT testers are disciplined. The changes, which came into effect on January 11, mean some problems can be dealt with immediately via ‘predetermined sanctions’ rather than the points system.
EVs: A 50 per cent tax should be added to the most-polluting cars to encourage buyers to switch to electric vehicles. That’s according to the UK Energy Research Centre, which says buying habits have been altered by the coronavirus pandemic. CarDealerMag.co.uk | 31
FORECOURT
BMW M340d xDRIVE
THE KNOWLEDGE BMW M340d xDrive
Price (as tested): £61,645 Engine: 3.0-litre turbocharged diesel Power: 334bhp Torque: 700Nm Max speed: 155mph O-60mph: 4.4 seconds MPG (combined): 48.7-52.3 Emissions: 166g/km CO2
All torque
The M340d has a 3.0-litre straight-six diesel engine and pumps out 334bhp and 700Nm of torque
BMW’s M340d brings punchy diesel performance in a useable estate package. Jack Evans gets behind the wheel to see what it’s like. WHAT IS IT? Essentially a more powerful version of BMW’s existing – and very good – 330d, this car brings even more performance yet without the high emissions you might associate with a car powered by the black fuel pump. WHAT’S NEW? The 3.0-litre engine has been tweaked to bring a higher overall output, while a 48-volt starter generator helps bridge the gaps in torque delivery for smoother, more linear acceleration. It benefits from adaptive damping too and an M Sport differential. But this isn’t a car for attacking the circuit. No, this is a car designed to offer effortless performance during the everyday drive. WHAT’S UNDER THE BONNET? The M340d uses a twin-turbocharged 3.0-litre straight-six diesel engine which produces a healthy 334bhp and 700Nm of torque. Power is sent via an eight-speed automatic gearbox to all four wheels via BMW’s xDrive system, ensuring good levels of grip even in the most British of conditions. WHAT’S IT LIKE TO DRIVE? With such a silky-smooth engine dominating proceedings, it’s hard not to be won over by the M340d. Left to its own devices, the 3.0-litre unit whisks away without any real fuss, while the automatic gearbox shifts smoothly and cleanly. The steering is well weighted and direct, while the suspension – in its softest setting – is comfortable yet supportive enough to let the car cope with the worst potholes yet corner without flailing all over the place. But lean on that motor and there’s a wealth of performance to take advantage of. The torque is the most noticeable aspect, providing the M340d with huge amounts of surge at impressively low revs. It makes overtaking a breeze, yet the overall refinement means this 3 Series will sit at a cruise like any ordinary saloon, despite being able to give Porsches a fright away from the lights. HOW DOES IT LOOK? The latest-generation 3 Series is arguably one of BMW’s best-looking vehicles in its current range and the M340d builds on this with a few select upgrades. The front grille has been
32 | CarDealerMag.co.uk
Inside The interior has spot-on ergonomics with an excellent driving position and is plush and comfortable.
Looks
In our eyes the estate looks even better than the 3 Series saloon and is the perfect size for UK roads.
TARGET BUYERS:
Those who want long-legged diesel efficiency but with genuine performance.
THE RIVALS:
Audi S4, Mercedes-AMG C43, Alfa Romeo Giulia.
KEY SELLING POINTS:
With such a silky-smooth engine dominating proceedings, it’s hard not to be won over by the M340d.
1. Great performance. 2. Excellent efficiency. 3. Practical design.
DEAL CLINCHER:
The M340d is close to all the car you could ever need, thanks to effortless performance, decent practicality and a wellmade cabin.
given a new colour, while at the back there are single-exhaust outlets either side of the rear bumper. However, it’s not a head-turner. It’s almost refreshingly subtle, despite the performance it offers, which will no doubt prove appealing for many drivers. Despite being available in saloon layout, we’d argue that the estate form in which our test car came looked even better. This latest 3 Series is a brilliantly well-proportioned car in ‘wagon’ form and feels just about perfect in size for the UK’s roads. WHAT’S IT LIKE INSIDE? The interior of the M340d is plush and comfortable. Most importantly, it’s spot on when things turn to ergonomics, with an excellent driving position. The steering wheel, although perhaps a little too thick, is adjustable, while the seats go nicely low in the car. Everything feels well made and tightly screwed together. It should, too, given that the M340d starts from £53,420, and our test car – with features such as a head-up display and optional gloss black alloys – tipped the scales at £61,645. However, if you want a practical performance car, then this is a great option. Boot space stands at a respectable 500 litres with the seats up. WHAT’S THE SPEC LIKE? Effectively the tip-top diesel 3 Series, the M340d brings a whole host of standard equipment. The Technology Pack, while expensive at £1,900, is a worthy addition to the car, bringing features such as a head-up display, upgraded speakers and wireless charging. We’d be less inclined to opt for the Shadowline Plus pack. At £750 it might not break the bank, but it only brings gloss alloy wheels and black mirror caps. WHAT DO THE PRESS THINK? Top Gear said: ‘If this is diesel’s last hurrah, then we can say it went out on a high, in one of the finest subtle superwagons ever built.’ WHAT DO WE THINK? The M340d might seem like a bit of a dinosaur in terms of powertrain but it certainly showcases the merits of diesel power and the efficiency it’s capable of delivering. It’s such a multi-purpose vehicle. Diesel’s days might be numbered but the M340d is a shining example of just what it can offer while it’s still here. CarDealerMag.co.uk | 33
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FORECOURT
ALFA ROMEO STELVIO
Power Our test car had the 2.2-litre turbo diesel pumping out 187bhp and 450Nm of torque.
Alfa Romeo has tweaked its Audi Q5-rivalling Stelvio but can this SUV continue to impress? Ted Welford tried one out for size.
THE KNOWLEDGE Alfa Romeo Stelvio Sprint 2.2
Price (as tested): £47,515 Engine: 2.2-litre turbo diesel Power: 187bhp Torque: 450Nm Max speed: 130mph O-60mph: 7.4 seconds MPG (combined): 44.1 Emissions: 169g/km CO2
WHAT IS IT? The Stelvio exists as a classier and more stylish take on the SUV formula – impressing with its rewarding driving experience. But there were weaknesses with the original car, notably the infotainment and some suspect interior plastics. It’s something Alfa Romeo has tried to address with the updated car. WHAT’S NEW? The latest Stelvio has an overhaul on the tech front – gaining new connected services and Level 2 autonomous driving features. These include the likes of adaptive cruise control, blind-spot monitoring and lane-keep assist. New alloy wheels aside, very little has changed on the style front, but as the Stelvio still looks as fresh as the day it was unveiled some years ago, you can hardly blame Alfa for taking an ‘if it ain’t broke, why fix it?’ approach. WHAT’S UNDER THE BONNET? Petrol and diesel engines are offered on the Stelvio, although it’s yet to benefit from an electrified option – something you’ll find on key rivals from Audi, BMW and Mercedes. Here our test car uses a 187bhp 2.2-litre turbocharged diesel engine, which is mated to an eight-speed automatic gearbox delivering power to all four wheels. It feels like quite an old-style diesel unit – not being especially refined, although it’s very smooth and the automatic gearbox is superb. WHAT’S IT LIKE TO DRIVE? SUVs aren’t renowned for being especially good to drive, but the Stelvio is a strong exception to that rule. If you value enjoyment behind the wheel, it’s the car to go for in this class, feeling almost as agile and involving as a saloon while staying especially flat through the corners, not rolling in the way you expect a top-heavy SUV to. The only downside to the sporty stance is that the Stelvio has quite a firm ride, although you may argue it’s a compromise worth making for a car that’s this involving. A narrow rear window also means visibility out of the back isn’t great, either. HOW DOES IT LOOK? Next to somewhat bland-looking rivals such as the Audi Q5, the Stelvio’s sleek shape goes
36 | CarDealerMag.co.uk
a long way. Alfa Romeo successfully added some glamour to the SUV segment when the Stelvio first debuted, and even three years on it still looks as current as ever. In terms of styling differences on this update, though, they are few and far between. A black grille and new alloy wheel designs are about as far as alterations go. WHAT’S IT LIKE INSIDE? The material quality has improved throughout, with the scratchy and hard plastics of old being ditched in favour of much softer and more upmarket materials. It’s not up to Audi or BMW levels of quality but the gap has certainly narrowed. The 8.8-inch media system has also been overhauled and is now a touchscreen as well as being controlled by a central rotary dial – a welcome improvement. The 525-litre boot is a decent size but rear space isn’t as generous as rivals’ and it doesn’t feel much roomier than something like a Golf. WHAT’S THE SPEC LIKE? The Stelvio range kicks off at £39,620 – comfortably undercutting key rivals to the tune of several thousand pounds. For that, you get a ‘Super’ model and you won’t feel shortchanged as it comes with 18-inch alloy wheels, an 8.8-inch media system with sat nav and smartphone mirroring, plus bi-xenon headlights to name but a few luxuries. Our test car came in ‘Sprint’ spec though, which is the pick of the range with a £44,820 starting price. It brings larger 19-inch alloy wheels, heated front seats, heated steering wheel, gloss black styling plus electric front seats and feels deserving of its additional cost. WHAT DO THE PRESS THINK? Auto Express said: ‘There wasn’t much wrong with the Alfa Romeo Stelvio before, but updates have transformed its biggest weakness – the interior.’ Parkers said: ‘It is a very likeable vehicle overall, with a distinctive character and plenty of performance from most of its engines.’ WHAT DO WE THINK? The Alfa Romeo Stelvio remains a seriously likeable SUV – proving that a high-riding model can be glamorous to look at and brilliant to drive, even with a sensible engine. While it’s not especially spacious, or indeed as ‘premium’ as you might hope for, given its price the tweaks to the interior quality and technology have put it closer to its rivals than ever before.
Inside Material used in the cabin has been improved and has a more upmarket feel.
Exterior Updates are basically a black grille and new alloy wheel designs.
TARGET BUYERS:
Those who want a premium SUV that’s a bit different to the usual German offerings.
THE RIVALS:
Audi Q5, BMW X3, Jaguar F-Pace.
KEY SELLING POINTS: 1. Cool Alfa Romeo design. 2. Great to drive. 3. Much-improved interior.
The Alfa Romeo Stelvio remains a seriously likeable SUV.
DEAL CLINCHER:
The Stelvio proves that glamour and fun can still be had by choosing an SUV.
CarDealerMag.co.uk | 37
FORECOURT
A3 SPORTBACK The new plug-in hybrid A3 may bring lower emissions and improved fuel usage, but what else can it offer? Jack Evans found out.
WHAT IS IT? Audi is in the process of electrifying the majority of its line-up and the A3 plug-in hybrid – badged A3 TFSI e – is one of the latest to join the fray. WHAT’S NEW? It’s underpinned by a new platform, while the interior boasts some of the very latest technology that Audi has to offer. WHAT’S UNDER THE BONNET? This A3’s powertrain is centred around an efficient and compact 1.4-litre turbocharged petrol engine. From here, it’s linked to an electric motor fed by a 13kWh battery with enough charge to drive the A3 on solely electric power for up to 37 miles. WHAT’S IT LIKE TO DRIVE? The regular A3 offers up a well-sorted driving experience and this new hybrid variant is more an extension of that. The electric motor adds a little extra zip to acceleration. The ride feels somewhat troubled by the extra weight of the batteries and suffers from a slightly fidgety sensation compared with the ‘regular’ A3. However, it’s not intrusive or distracting. HOW DOES IT LOOK? It’s a smartly finished design overall and certainly leads on well from the previousgeneration A3. In Sportback layout – Audi’s term for hatchback – the A3 looks quite conventional, particularly when finished in darker shades. WHAT’S IT LIKE INSIDE? The cabin is dominated by screens but many aspects of the interior have stayed pleasingly old-tech. You can’t fault the A3’s cabin when it comes to build quality either, although the boot has been affected by the inclusion of the batteries. The hybrid offers 280 litres – 100 fewer than on the regular A3 – but fold the rear seats down and it can be increased to 1,100.
THE KNOWLEDGE A3 Sportback 40 TFSI e
Price (as tested): £36,825 Engine: 1.4-litre turbocharged petrol linked to electric motors Power: 201bhp Torque: 350Nm Max speed: 141mph 0-60mph: 7.3 seconds MPG: 235.4 Emissions: 29g/km CO2 Electric range: 37 miles
TARGET BUYERS:
Those who like the look and feel of the latest A3 but want even lower running costs.
THE RIVALS:
Skoda Octavia iV, BMW 330e, Mercedes-Benz A250e.
KEY SELLING POINTS:
1. Excellent build quality. 2. Low running costs. 3. Low tax band for company car users.
DEAL CLINCHER:
This hybrid A3’s low running costs, smart looks and premium interior are sure to make it a hit with many drivers.
WHAT’S THE SPEC LIKE? It features Audi’s excellent Virtual Cockpit – which comprises a 10.25-inch display in the instrument binnacle – and this is combined with a 10.1-inch central touchscreen that houses all key media and navigation functions. It’s got Apple CarPlay, too. WHAT DO THE PRESS THINK? Autocar said: ‘Largely impressive plug-in hybrid set-up with all the usual Audi design and build quality.’ WHAT DO WE THINK? This new hybrid powertrain really does add another level of appeal to the A3 package. The rock-bottom emissions will ensure that the TFSI e will be a tempting option for business car users. It’s backed by a well-packaged interior and a superb level of technology, too. 38 | CarDealerMag.co.uk
Inside
Although the cabin is dominated by screens, there are aspects that remain pleasingly old-tech.
CarDealerMag.co.uk | 39
FORECOURT
CITROEN C3 Citroen has tweaked its popular supermini in a bid to keep it fresh next to rivals. Ted Welford finds out if it’s proved successful WHAT IS IT? This funky model has been around in its current form since 2016 and clocked up nearly 800,000 sales but remains a car many forget about in this class. To make sure that’s no longer the case, Citroen’s launched an updated model. WHAT’S NEW? The front-end styling gets a redesign, with LED lighting now standard across the range. Meanwhile, Citroen has expanded the personalisation options from 36 to 97. Elsewhere, it’s added its new Advanced Comfort seats, which are a joy to sit in.
THE KNOWLEDGE
Citroen C3 Shine Plus PureTech 110 EAT6 Price (as tested): £20,295 Engine: 1.2-litre turbocharged petrol Power: 109bhp Torque: 205Nm Max speed: 120mph 0-60mph: 11 seconds MPG: 44.2-49.2 Emissions: 139g/km CO2
TARGET BUYERS:
Those looking for a comfortable and fun-looking supermini.
WHAT’S UNDER THE BONNET? An 82bhp 1.2-litre petrol engine kicks off the range, but with no turbocharger it’s pretty underpowered. The best bet is the six-speed turbocharged 1.2-litre unit fitted to our test car.
THE RIVALS:
WHAT’S IT LIKE TO DRIVE? Comfort is what the C3 is all about, and the fact it’s so exceptionally softly sprung makes it very comfy to travel in. But the soft suspension means it rolls through corners and struggles for traction when you push on, while the ultra-light steering is clearly for town use.
KEY SELLING POINTS:
HOW DOES IT LOOK? The C3 continues to stand out from the crowd. The bold colour palette remains, while additional packs bring a contrasting shade to the fog light surrounds and plastic airbumps that run along the two doors. There’s also a new roof decor that adds style. WHAT’S IT LIKE INSIDE? One of the best bits is the Advanced Comfort seats, fitted to the top-spec Shine Plus trim level. The seven-inch touchscreen isn’t especially slick and responsive, but it’s easy to operate and has sat nav, DAB radio, smartphone mirroring and a reversing camera.
Renault Clio, Ford Fiesta, Vauxhall Corsa, Seat Ibiza.
1. Very comfortable ride. 2. Lots of personalisation options. 3. Low starting price.
DEAL CLINCHER:
Bold styling and its focus on comfort means it stands out from the crowd.
WHAT’S THE SPEC LIKE? The range starts from £13,980 for a C-Series model, which has a touchscreen, LED headlights and 16-inch alloy wheels among the features. Shine versions bring rear parking sensors and automatic lights and wipers, while the range-topping Shine Plus gains 17-inch alloy wheels, a reversing camera, additional safety kit and satellite navigation. WHAT DO THE PRESS THINK? Parkers said: ‘Rather like Citroens of old, the C3 is a bit of a Marmite car, but it’s one that’s likeable and has individual appeal.’ WHAT DO WE THINK? Its focus on comfort gives it a clear advantage over rivals for buyers looking for a laid-back driving experience and ease of use. But this Citroen can’t compete for class honours when there are rivals such as the Ford Fiesta and Renault Clio around. 40 | CarDealerMag.co.uk
Inside
One of the best additions to the update are the extremely comfy new seats.
Gallagher Automotive Specialist Insurance for the Motor Trade Experience is key - and you need a specialist insurance broker who’ll take the time to understand the specific needs of your motor trade operation.
GST-236330647
The Gallagher Automotive Insurance Team has been helping to protect businesses across the UK for over 50 years - from independent repairers and small family firms to the largest franchise dealerships.
Get in touch to discover how we can help your business. Would you like to talk? T: +44 (0) 800 612 2284 E: automotive_enquiries@ajg.com www.ajg.com/uk
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. FP1522–2020 Exp. 26/11/2021. ARTUK 1551 CarDealerMag.co.uk | 41
FOCUS ON Autoglym
autoglym.com
Autoglym Professional one-hour workshops Number 1: Headlight restoration
S
imple but thorough cleaning jobs can add hundreds to the value of your car but at minimal cost. In this series, Autoglym Professional brings you top tips on jobs you can do for less than £50 but will add masses of value to your vehicle. One of the scourges of modern cars is cloudy headlamps. From the early 2000s, the use of softer, more malleable plastics became a common feature of car design as manufacturers added increasingly large ‘glass’ areas to their cars, but the downside is that modern lamps are far more prone to deterioration than are older lenses and can get very cloudy and dim. And with modern headlamp units costing up to £500 to replace (so £1,000 a pair on luxury models such as Range Rover) and usually over £100 on even more basic models, they can be an expensive item to replace. Luckily, Autoglym Professional has the answer in the form of its multi-award-winning Headlight Restoration Complete Kit, which will clear your car of automotive cataracts, increasing light performance, saving hundreds of pounds and adding huge appeal to any car you’re wanting to sell, as it will reduce a potential buyer’s haggling potential as well as make it look far smarter than other examples on the market.
1
Give the headlights a wipe clean and make sure they’re dry, then carefully mask off all surrounding paintwork and trim with masking tape, using two or three layers.
2
Using a hand-held drill, apply the 800-grit abrasive disc from the Autoglym Headlight Restoration Complete Kit and work your way around the lamp in a side-to-side then up-anddown motion. Do this slowly and with moderate pressure, being careful not to catch the car’s paint. For awkward areas, remove the disc and rub the edges down by hand. Occasionally spray a light misting of water on the lamps to avoid burning the plastic.
3
Repeat the process with the 1,500-grit disc on the drill. When a uniform finish is achieved, you’ll notice the plastic start to become less cloudy and opaque as you work up the grades of finer sanding and polishing until it’s restored back to see-through.
5
Using the 3,000-grit sanding pad and a spray bottle of water, work your way across the entire headlamp – you’ll be able to see at this point that the lens is becoming see-through and clear now, and it’s a really satisfying part of the job.
6
Fit the waffle polish applicator to the drill head and apply a small amount of Autoglym Headlight Restoration Compound to the pad. Dab it across the headlamp first before turning the drill on. Spread the compound across the lamp and wipe off with an Autoglym Perfect Polishing Cloth.
7
Seal your newly restored headlamp using Autoglym Radiant Wax Polish, ensuring that the now-translucent lens will remain that way for a long time to come.
8
Remove the masking tape, stand back and give yourself a big pat on the back – you’ve just made your car look a million times better.
4
Repeat with the 2,000-grit sanding pad, adding water for an even finer finish.
To find out more or to place an order, go to autoglym.com 42 | CarDealerMag.co.uk
IMAGINE REMOVING BIRD D E P O S I T E TC H I N G W I T H BY APPOINTMENT TO HER MAJESTY THE QUEEN SUPPLIER OF CAR CARE PRODUCTS AUTOGLYM, LETCHWORTH, ENGLAND
BY APPOINTMENT TO H.R.H. THE PRINCE OF WALES SUPPLIER OF CAR CARE PRODUCTS AUTOGLYM, LETCHWORTH, ENGLAND
NO WET SANDING NO BUFFING MACHINE N O H O LO G R A M S
REFLOW
NO SWIRL MARKS N O P I G TA I L S NO RISK
Reflow is a breakthrough treatment that permanently removes etching marks and dull spots, caused by bird deposits, from car paintwork*. Developed by Autoglym, Reflow is an innovative solution to one of the most common problems in car care – paintwork damage caused by bird deposits. Reflow is safe, easy to use and requires no specialist tools and takes just 30 minutes to effectively heal vehicle paintwork, leaving a perfect finish once again.
W AT E R A C T I VAT I O N
THERMAL TRANSFER
PA I N T H E A L I N G
Cold water is added to pack to activate, pack is placed on affected area and left for 30 minutes.
Pack heats surface to optimum temperature allowing paintwork to reflow and fill imperfections.
As pack cools, paintwork sets effectively healing affected area, pack is removed − etching disappears.
*Important note: Reflow works best on new or nearly new vehicles, with clear coat, that are up to three years old. If paintwork is aged, Reflow will significantly improve the appearance of the etching but might not remove it completely.
autoglym reflow CarDealerMag.co.uk | 43
FEEDBACK TOP TWEETS
Rumours spread this month about an end to click-andcollect, but where do car dealers fit into that?
Alex Jones @Alex_Jones_
One of the problems with high street retailing click-and-collect is the potential for long queues. Automotive doesn’t have this issue. Comparatively extremely low numbers of visits for a higher value single item. Fingers crossed this difference is recognised.
Bruce J Beaton @beaton_bruce
If you work in @Tesco and need a car you are an essential user. Can’t judge or generalise.
rob kerr @robkerr1906
I work in sales within a dealership and I’m extremely pleased that we still have a job to go to.... but, even if dealerships are able to stay open for click-and-collect, how can anyone come and collect a car without being punished/ fined for travelling non essentially?? 44 | CarDealerMag.co.uk
Your comments via email to editorial@blackballmedia.co.uk
I finally tried distance selling but is it worth it? Have tried to resist distance selling up until now but we now have to if we want to sell any. Had someone twice view a year-old BMW prior to tier 4 and they decided to go for it last week. We are now T4 so did everything we thought right, including giving the Lawgistics distance sale paperwork. It was taxed in their name at the post office as change of class and the V5 went to DVLA. That night they called saying it hasn’t got power mirrors – we knew that, never mentioned it or advertised as such. They had the same car before so would have known where the button was. Few days on and they now want to reject at the 14-day stage in 11 days’ time but won’t put it in writing until then. We have offered to refund and collect now. Couldn’t make it up but guess there is nothing we can do. Makes me feel like not doing any more but know we will be left behind if we don’t. Normal times, normal sales you’d say I’m sorry but you viewed the car, but this rule suits today’s public to a T. Any thoughts on anything we can do other than wait it out? Harry George
PICTURE OF THE MONTH
If they have twice viewed it then it isn’t distance selling is it? I’d tell them to bolt. MarkTVS Even if they hadn’t viewed it, the car isn’t misadvertised, so what is the issue? SC Derby
Kia well and truly lit up the skies when it revealed its new logo in early January via a pyrotechnic display above Incheon in South Korea. A total of 303 ‘pyrodrones’ launched hundreds of fireworks in one synchronised display, setting a new Guinness World Record for the most unmanned aerial vehicles launching fireworks simultaneously.
I disagree. As the customer had viewed it, I would say it’s not a distance sale. As you have given them all the paperwork for a distance sale there’s not a lot you can do about that now. Don’t forget you have, I believe, up to 14 days to refund them. So plenty of time to make sure it is OK. Frank Cannon
Customers can leave reviews for our businesses, it’s just a shame we can’t leave customer reviews! I had a punter trying to return a car a few years back as he wasn’t happy with the radio, so naturally I told him to go and do one. Did a bit of digging around the trade and found he had tried to return three other cars for spurious reasons. Needless to say, he didn’t get a refund or much time from me. Back to your case... Folding mirrors? Does that really spoil your enjoyment of a vehicle or affect a buying decision? I would imagine that like a lot of us you guys watch shows such as The Sheriffs Are Coming. People’s expectations of cars they spend a few grand on are unbelievable. Don’t know how some of you cope with these idiots. Petrol head If you’ve given them the Lawgistics distance selling regulations then you can charge them £1 a mile after 20 miles as stated in the terms. So at least if they keep it for a bit and use it you can get some money from them. Southern Trader
More and more of our readers are joining the debate – and it couldn’t be
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Forum: CarDealerMagazine.co.uk/forum
BASIC ECONOMICS
Customer wanted me to buy car back but failed to see I need to make profit A customer rang me today, saying: ‘Hello. I want to sell my car back to you. I bought the car in June from you but I’m working from home now so I don’t need a car any more.’ I said ‘OK, tell me the reg and mileage and I’ll look up the car.’ She wants £9,000 back, top and bottom of it all. ‘Only fair as I’ve haven’t used it’, she goes. I asked her: ‘What do I do with that then, as there is no profit for me in that deal?’ She said: ‘Sell it again of course.’ ‘But there’s nothing in the car for me,’ I repeat. ‘What do you mean?’ she says. ‘You’d get £9,000 for it! How much do you want?’ My God, the world is going mad! I knew about profit when I was 10 years old. I asked if she’d tried We Buy Any Car. ‘Yes’, she said, ‘but they offer lots less money.’ I just said no. David Horgan
We’ve teamed up with Car Sales Memes to bring you a few of their funniest captions and slogans each month. Enjoy!
The best way to deal with this situation is to say you have spent your buying budget for the month. You don’t get negative feedback then. It’s me ‘Madam. We like to make £500 per car we sell. That is reasonable isn’t it?’ Once they agree, you can explain the economics of actually ending up with £500 profit. David Ayers I too usually say ‘I’m stocked up’. More polite and ends the conversation there and then. You aren’t going to reason with the lady. Frank Cannon
How are you selling in lockdown? What are you guys doing for car or van sales? We are working on a click-and-collect/delivery basis only, no viewings or test drives prior to handover, and a 14-day money back rule, but there are garages advertising viewings and test drives. Is that allowed? If so, how? A&S Naming no names but there are a few dealers round me that have ignored the rules from day one and haven’t stopped trading as usual. Lakeside Hopefully karma will come back to haunt them. It’s because of selfish, brainless morons like them that we are in this position. DCS01 Can you honestly blame them after the weak and indecisive governance we’ve all received? Nine months of clutching at straws but politically too frightened to take a strong line. Only a couple of days ago the tiers were adjusted again, then just half an hour ago we were told it’s lockdown time again, which I assume renders the tiers obsolete. BHM
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DASHBOARD
SUPPLIER NEWS
A ROUND-UP OF WHAT’S BEEN HAPPENING ACROSS THE COUNTRY AUTO TRADER
First off the block with support for dealers
AUTO Trader customers will get free advertising in February and an extension to payment terms for January bills. The classified advertising website was the first to announce its package of support for car dealers forced to shut showrooms during the third lockdown. Auto Trader CEO Nathan Coe. pictured, said he was committed to ‘doing the right thing’ for dealers and offered the ‘helping hand’.
CARGURUS & PISTONHEADS
Platforms will amalgamate to expand reach THE CarGurus and Pistonhead platforms are to be combined into one product for UK car dealers. Bringing them together will ‘provide expanded audience reach and greater stock visibility for dealers across both sites’. Dealers will now have one integrated subscription for listings and related services across both platforms. It follows the news that both the platforms will be waiving their listings fees for February, with CarGurus also offering subscribing dealers free trials of its Area Boost product.
HEYCAR
Free delivery extended to the end of February
ONLINE car marketplace heycar is making its free delivery offer on all vehicles available for longer. It said it was extending the offer – introduced in November and which can save people up to £499 – because of the new national lockdown. The offer is available until February 28. Dealers fulfilling a delivery request will have the expense reimbursed. Heycar said the support was essential to maintain sales. 46 | CarDealerMag.co.uk
eBAY MOTORS GROUP
Having a positive mental attitude during a pandemic is tough for some, but the only way to move forward is to start moving. Ben Garside p57
RAC DEALER NETWORK
Vehicle listings fees are Digital pack to help dropped until March with online sales
DEALERS currently with eBay Motors Group won’t be charged for advertising in February to support them during the new lockdowns. Not only will vehicle listings across Gumtree Motors, eBay Motors and Motors.co.uk and its network be fee-free for the month, to help them keep their stock visible, they won’t be charged for ‘reasonable over-posting’ either. The offer only applies to dealers who stay with eBay Motors Group until June 30.
CAR retailers with the RAC Dealer Network are being helped to maximise sales during the pandemic via a new digital pack for websites. It includes banners with clickand-collect and click-and-deliver messages alongside RAC branding. James McCarthy, sales manager at network member McCarthy Cars of Croydon, said having access to the right digital assets made the network advantages more apparent quickly and easily. Image: Google Street View
CarDealerMag.co.uk | 47
FOCUS ON Trade Car Network
tradecarnetwork.com
Website solves challenges that many dealers face on a daily basis Trade Car Network co-director Ian Stackman explains how it can help dealers sell more cars, more profitably – and more often.
I
’m sure that every motor dealer in the UK has faced this all-too-common situation… The traded car that turns out to have a £3,000 bill to get it up to a retail standard, the trader who ‘knew nothing about the problems’, and the law that, unfortunately, doesn’t offer the same protection to dealers as it does to the public. We are the experts after all. Then there is the traditional source of used car stock – auctions that allow retail customers to bid, consequently driving up the prices, and still take their commission on top. With this source of stock, we have seen values fluctuating incredibly over the past 12 months, squeezing margins to breaking point. Covid-19 has created an unprecedented volatile market, many dealers reporting boom and bust in consecutive months, and many, sadly, not surviving the swings. Now, more than ever, it’s time for a new way to assist dealers. Enter, Trade Car Network. Devised by motor dealers for motor dealers, it has created a website to solve many of the issues the trade has to overcome on a daily basis. The internet has been amazing for the consumer. The ability to source their new car nationally with exactly the desired requirements has made their lives very easy. However, it has been a challenge for dealers. Without 4,500 cars in the group stockholding, how do you source that ‘factory-built used car’ the customer can get delivered from the growing trend of web-based dealers? Trade Car Network is a customer-facing portal allowing you the dealer to automatically build in your margin and show the car as if it’s in your own ‘group stock’. You can even advertise that car on your own social media pages with one click, giving the appearance of a much larger choice of cars, appealing to more customers and keeping your brand presence high in your own marketplace. The selling dealers are loving this functionality too, as they are far more likely to sell their trade car when the network of like-minded dealers offer their stock to retail customers in a market they wouldn’t usually have access to. The customer is happy too, as most would still like to buy their car locally for peace of mind in case of any warranty issues. It’s a win-win-win for all concerned. The car loading screens are very quick and easy to navigate, and there is the function to upload the original technicians’ preparation sheet. With Trade Car Network you can buy stock with peace of mind, sell in the trade quickly and easily, advertise other network dealers’ stock as if it’s your own, and show customers sourced vehicles immediately. You can email links to the ‘group stock’ through social media for customers who can’t be with you at this time, and once dealerships reopen their doors you can also show them sourced vehicles immediately with them present. All this for only £75 plus VAT per month for unlimited access and transactions. Now that is a game-changer.
48 | CarDealerMag.co.uk
Covid-19 has created an unprecedented volatile market, many dealers reporting boom and bust in consecutive months.
Click here to take a look at Trade Car Network’s explainer video.
Lego Jeep Wrangler
FEATURE.
5
£44.99 COOL GADGETS FOR PETROLHEADS
Who doesn’t love a good gadget? Anything that can make life easier, simpler and cooler is always welcome, and there are plenty for the avid motorist. We’ve picked out some of the best around at the moment for a variety of budgets.
OKAY, so a Lego kit isn’t exactly a gadget, but we still think this model qualifies for the list simply because of how impressive it is. Designed to mimic a Wrangler Rubicon, it gets chunky offroad tyres and even articulated suspension. Made up of 665 pieces, the Wrangler model will certainly help to brighten a dreary winter afternoon.
Nextbase 622GW
Handirack Inflatable Roof Bars
Defender Signal Blocker
Seasucker Talon Bike Rack
THE popularity of dashcams has grown immensely in recent years, particularly as courts have begun accepting footage captured on them in insurance cases. The features they pack have increased too and Nextbase is one of the biggest names. Its 622GW films in clear 4K and incorporates what3words tech that can relay your co-ordinates within a 3m2 area should you be involved in an incident.
NEED a set of roof bars but don’t want to go to the extent of fitting a full metal set? The Handirack could be the ideal option. It’s made up of two sets of ‘tubes’ that once inflated form a ‘rack’ you then attach to a car’s roof. Once inflated via the included hand pump, fitting them takes under 10 minutes and you then use them much like a regular rack. It’s great for people who don’t want to fit a traditional system all the time, eg, surfboarders.
KEYLESS vehicle theft is a real concern for motorists at the moment, with tech-savvy thieves finding ways to relay a wireless key’s signal and gain access to a car – all without the owner having any idea. The solution is a Faraday pouch, which is based on the Faraday cage principle. The metal-lined pouch block a key’s signals, stopping thieves in their tracks. The Defender Signal Blocker is one of the best, and as a bonus, it’s only £5.
IT MIGHT be pricey, but Seasucker’s Talon Bike Rack is an excellent way of transporting your bicycle if you don’t want to go down the conventional roof rack route. Suction pads attach it to the roof of any vehicle, on to which you then place your bike. To take it off, you simply release the pressure on the suction mount and it pops free. Taking up barely any room, the Talon can handle mountain and road bikes and works on nearly every make and model.
£219
£70
£5
£329.99
CarDealerMag.co.uk | 49
DASHBOARD
BUSINESS NEWS
A ROUND-UP OF WHAT’S BEEN HAPPENING AROUND THE UK DELAYS
Payment reform aims to help small firms
AN overhaul of the Prompt Payment Code to crack down on delayed invoices owed to small businesses has been announced. As of July 1, firms signed up to it must pay 95 per cent of invoices from small companies within 30 days – half the time outlined in the current code. Currently, £23.4bn worth of late invoices are owed to firms across Britain.
LOANS
Fourfold rise in business borrowing recorded BUSINESS borrowing skyrocketed in 2020 as companies fought to survive the pandemic. There was a fourfold increase in lending, with more than £68bn partly or fully guaranteed by the Treasury according to Bank of England statistics. The most popular initiative was the Bounce Back Loan Scheme, which funnelled £43.5bn to 1.4m firms. The Coronavirus Business Interruption Loan Scheme (CBILS), its sister for larger companies CLBILS and the Bank’s Covid Corporate Financing Facility also provided billions of pounds to businesses.
MONEY
Crisis prompts block on cash payments
GRANT
Chancellor offers £4.6bn lifeline for businesses SOME 600,000 retail, hospitality and leisure businesses will be able to claim a one-off grant of up to £9,000 because of the new lockdowns, the chancellor has announced. The payouts will cost the Treasury £4.6bn and have been designed to ‘support businesses and protect jobs’ as England and Scotland face the challenges of the latest restrictions. Rishi Sunak also announced a further £594m for local authorities and devolved administrations to support businesses that aren’t eligible for the grants.
MORE than a third of consumers have been blocked from paying with cash during the coronavirus crisis, according to Which? Some 34 per cent of people reported being unable to pay with cash at least once since March 2020. It was most likely to happen when grocery shopping (28 per cent), the survey of more than 2,000 people in November found.
WE HERE FOR FORYOU YOU WE ARE HERE 50 | CarDealerMag.co.uk
ECONOMY
UK heading to double-dip recession as GDP drops
MORE THAN JUST A
FINANCE COMPANY THE UK economy is on track to head back into recession as official figures showed that it fell in November after the country was hit by stricter coronavirus restrictions. The Office for National Statistics said on January 15 that UK gross domestic product (GDP) declined by 2.6 per cent month-on-month in November. GDP at the end of the month was 8.5 per cent below its pre-pandemic peak but is expected to fall further after a third lockdown took hold in January.
TALK TO US TODAY. 0115 946 6260 enquiries@frfl.co.uk frfl.co.uk/car
CBI
Plea made over furlough and rates THE government is being urged to announce an extension to the furlough scheme and business rates holiday before the Budget on March 3. The Confederation of British Industry said in its Budget submission to chancellor Rishi Sunak that businesses couldn’t afford to wait nearly two months to know if they’ll receive further help. The end of April is the cut-off for the furlough scheme, while the rates holiday finishes at the end of March.
just a phone call away. CarDealerMag.co.uk | 51
DASHBOARD
INDUSTRY VIEWS NEWS AND THOUGHTS FROM SOME OF OUR CAR DEALER LIVE GUESTS
SENTIENCE AUTOMOTIVE
Don’t hit the panic button – this isn’t a sprint LOOK at six-to-12-month plans in your dealership – that was the advice from Sentience Automotive owner and MD Ali May-Khalil. ‘Forget January,’ he said. ‘Let’s look at our six and 12 months. What does that look like and what’s the profitability? Because if we have two terrible months, you’ve still got 10 months to make it up. Don’t hit the panic button. This is a marathon, not a sprint.’ And he warned dealers not to make hasty, negative decisions, as they would ultimately be ‘bad business decisions’.
HAYMARKET AUTOMOTIVE
Unless we see a really extended lockdown into the second quarter of this year, I can’t believe we will see anything other than a really strong bounce back.
Rachael Prasher Haymarket Automotive
CARBASE
People will be wanting to reward themselves
Understanding a subtle difference proved key
RACHAEL Prasher believes there will be a significant post-lockdown bounce as many car buyers will want to cheer themselves up with a new car. The Haymarket Automotive MD said: ‘I am an optimist and I will always lean to the positive, but unless we see a really extended lockdown into the second quarter of this year, I can’t believe we will see anything other than a really strong bounce back. ‘I imagine that there will be this big pent-up demand coupled with a plate change in a key car-buying time of the year, along with all the benefits that have come from saving money. It has been really tough and there will be a sense of people wanting to reward themselves.’
ONE of car supermarket Carbase’s biggest wins was with its reservation online function that lets customers hold a car – and while some were busy adding it as the crisis took hold, Carbase already had years of experience. Alex Jones, head of digital and marketing, said: ‘We did a lot of work around the balance between either a test drive or a hold and I would say that’s one of the things that has changed the most over time.’ Some customers were only happy to go as far as committing to a test drive online, while others wanted to reserve a car as soon as they found it, and it was understanding this subtle difference that helped shape the website to offer both.
52 | CarDealerMag.co.uk
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Watch our Car Dealer Live broadcasts as they go out or catch up on any that you’ve missed at: cardealermagazine.co.uk/live CAP HPI
WHAT CAR?
Used car prices are unlikely to fall off a cliff
People are increasingly happy to buy cars online
DERREN Martin, head of valuations for Cap HPI, said used car prices were unlikely to fall off a cliff during the current restrictions. However, he warned that tightening measures on trading by the government – that some dealers fear could see click-and-collect services canned and home deliveries only – may cause prices to falter. Martin said there was ‘concern’ among the dealers that his team had been speaking to, adding: ‘It does feel as though the government are dripping stuff in to toughen restrictions, and from the dealers we have spoken to they are concerned that click-and-collect could be something that gets stopped. ‘I don’t know how imminent that is and we really hope it doesn’t happen.’
JIM Holder – editorial director of Haymarket Automotive, publisher of What Car? – talked about buyers’ changing attitude to buying online. What Car? has found customers are far happier to buy this way than they were. ‘Increasingly, consumers are happy to buy online,’ said Holder. ‘It’s clear from our data that more and more people are willing to buy online, and every lockdown this seems to rise exponentially. ‘Manufacturers and retailers have invested heavily in this and are giving a reassurance for customers that means they are willing to engage in this way.’ What Car? has seen interest in specific car test reports dwindle slightly, but traffic to its guides and Top 10s for certain model groups has increased.
AUTO TRADER
Reasons to be cheerful despite the lockdown AUTO Trader chief operating officer Catherine Faiers shared reasons to be positive amid the gloom of lockdown. While she thought sales would drop, there were positive signs such as a huge spike in searches for used cars on its platforms since Boxing Day. ‘I would hope we would see levels of about 50 per cent, and we are basing that on audience levels on our platforms, not on sold data,’ she said in the interview you can watch above. ‘We don’t have the data just yet for the last few days of trading performance, but it does become slightly self-fulfilling depending on the view that retailers take.’
From the dealers we have spoken to they are concerned that click-andcollect could be something that gets stopped.
Derren Martin Cap HPI CarDealerMag.co.uk | 53
! I T T A G U B
K N U R H S I , Y E N HO THE
FEATURE
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ow much did you spend on your children and grandchildren at Christmas? Maybe £50 if they’d been well behaved during the year? One doting German chap really pushed the boat out and ordered each of his five grandchildren a Bugatti Baby II you see here – costing as much as £50,000 per car. Scary, right? Those kids must’ve behaved impeccably throughout 2020. But what about this present-to-end-all-presents? It’s essentially a miniature version of the firm’s Type 35, which was the quickest car of its day in the 1920s and is exceptionally valuable today. One sold at auction for $3.3m (circa £2.4m) in 2017, as an example. But the original ‘Baby’ arguably has a better story. Designed as a one-off toy car for the founder of Bugatti’s eldest child’s fourth birthday, the sports car firm’s discerning customers quickly spotted the model on display while visiting its factory in Molsheim, France, and wanted one of their own. Five hundred would be produced between 1927 and 1936, and the ‘Baby’ would be reborn in 2019 at the Geneva Motor Show as a slightly oddball way for Bugatti to celebrate its 110th birthday. A little over 18 months later and here we are with the new car in front of us on a freezing cold December afternoon in Bicester with the Little Car Company – the eccentric firm that’s tasked with creating these miniature cars. The Baby II’s size is something that’s really hard to gauge in pictures – largely, in part, because of how close it is to the real thing, and at a 75 per cent scale, it’s not as small as you might expect. In fact, we’re not really allowed to describe it as a ‘toy’ because of its power and the fact that it’s said to be designed for 14-year-olds and over – although we’d hazard a guess that plenty of grandchildren younger than that will be driving it. And today it’s my turn to see what it’s like. It might be a challenge to squeeze my 22-yearold legs under the steering wheel, but this Bugatti will be enjoyed by just as many adults who are young at heart as it will children. It’s also so much more than an off-the-shelf electric toy. In fact, it’s been engineered with Andy Wallace, Bugatti’s chief test driver for its latest hypercars, while those who have held development roles at some of the UK’s 54 | CarDealerMag.co.uk
most prominent car makers have also been involved in the project. Based on a 3D scan of a real Type 35 with replica dials and using parts companies that supply components for the latest 1,500bhp Bugattis, it’s an impressive feat of engineering. Behind the wheel, you immediately notice the offset camber on the front wheels – just like the original – while the steering offers a really surprising amount of feel. It really does have a surprising amount of agility, and while I’ve never been lucky enough to drive an original Type 35 – nor do I ever expect to be – you can imagine that the owner of the real deal would be impressed by the similarities. The powertrain won’t be quite so similar, as here you won’t be coughing on petrol fumes but rather you have a zippy little electric powertrain to play with. In standard form, it offers a modest 4kW (5bhp), but in high-spec Vitesse and Pur Sang – nameplates used on ‘real’ Bugattis – the power is increased to 10kW (13bhp), while also having a larger battery that allows 31 miles of range.
A We want to bring these classics to a new audience that otherwise wouldn’t be able to afford them or have access. Ben Hadley
nd the question you’re probably wondering – how fast does it go? While, like the original, the awkward seating position means you can’t really see the speedo, on paper you can do 42mph – but believe me, it feels quicker like that. That higher speed is unlocked by a ‘Speed Key’ – an exceptionally cool nod to modern Bugatti Veyrons and Chirons. Here the difference in speed and acceleration is immediately recognisable. It’s safe to say there are few more enjoyable ways of going round on four wheels and it truly feels raw and involving. Ben Hadley, chief executive of the Little Car Company, tells us he always conducts a ‘smile test’ on anyone new to driving one, and nobody is yet to return from their first lap without a huge grin on their face. But who is buying these things, you’re probably wondering. It transpires there are still plenty of interested parties, as around nearly all 500 of this new production run have been accounted for. We’re told there are some ‘household names’ that are getting one. Plenty will be sharing a garage with real Bugattis, while some are going to collectors who will never use them – a sad thought. Another is going to a private jet lounge in Dubai. As you do. Hadley says: ‘We want to bring these classics to a new audience that otherwise wouldn’t be able to afford them or have access. But they have to be as authentic as possible. ‘What we’re all about is making sure that different generations fall in love with driving – I just love the idea of grandparents teaching their kids to drive in one of these.’ Another interesting point raised is about them being EVs. Hadley adds: ‘Ultimately, we want to prove EVs can be fun. If this were powered by an engine from something like a lawnmower it would just be so much worse.’ So what else does the Little Car Company have in store? Well, it’s currently building a factory at Bicester Heritage – a cool industrial estate dedicated to everything automotive – and has recently shown off a collaboration with Aston Martin and its iconic DB5. More manufacturer projects are also in the pipeline. It’s a strange thought that with a starting price of €30,000 (circa £27,000), people will spend more on a Baby II than many of us will ever splash out on an actual car, and prices rise all the way to €58,500 (circa £53,000) for the flagship aluminium-bodied Pur Sang. Little wonder then that many will be sharing a garage with multi-million-pound supercars and real Type 35s. Chances are the little toy version will be used more often – and be a lot more fun in the process… CarDealerMag.co.uk | 55
DASHBOARD
FINANCE NEWS PROPOSALS
Changes to debt relief orders could avert misery
M
ore people with severe financial difficulties could be helped with a fresh start under government proposals to widen the eligibility criteria for debt relief orders – a type of formal personal insolvency in England and Wales, sitting alongside bankruptcies and individual voluntary arrangements. They tend to be a low-cost solution aimed at people who have smaller amounts of debt but no realistic prospect of paying it off. They protect people from creditor action and after 12 months the debts within the order are written off. The government is consulting on proposed changes to the orders that would increase the maximum total debts allowed from £20,000 to £30,000. The maximum value of assets that can be owned by someone under the eligibility criteria would be doubled from £1,000 to £2,000. People could also be allowed to have more surplus income under the eligibility criteria – £100 per month instead of the current £50. The government said research indicates that the demand for debt advice could increase by up to 60 per cent by the end of 2021 and around three million more people than before the coronavirus pandemic will need support with debt problems by the end of the year. Business secretary Kwasi Kwarteng said: ‘Suffering from financial difficulties places a huge amount of stress on people’s mental health and well-being, which is why we are committed to giving more people who are struggling with debt a chance for a fresh start. ‘Debt relief orders are a valuable tool for supporting vulnerable people to get to grips with their problem debts. Our plans to increase the eligibility criteria will mean many thousands more could benefit from this help.’ Phil Andrew, chief executive of StepChange Debt Charity, said: ‘Lower income households with few assets are among those most deeply affected by debt during the pandemic. Extending eligibility for debt relief orders will help to give more people a chance to avoid the long-term misery of being trapped by debt that they cannot afford to repay over a reasonable period.’ The consultation – announced on January 12 – will run for six weeks, and any potential changes are expected to be put in place this spring.
FLA
New business volumes drop by nearly a quarter LATEST figures from the Finance & Leasing Association show the consumer car finance market suffered a fall in new business volumes of 24 per cent in November 2020 against the same month in 2019. The consumer new car finance market reported a year-on-year fall in new business volumes of 27 per cent in November 2020, while the consumer used car finance market had a 23 per cent drop in new business volumes. Geraldine Kilkelly, head of research and chief economist at the FLA, said: ‘The fall in new business volumes in November reflects the closure of many showrooms as further restrictions were introduced to deal with rising cases of Covid-19. ‘UK-wide lockdowns during the first quarter of 2021 mean the near-term outlook remains challenging. The motor finance industry will continue to support households and businesses during that time and as the economy recovers, as evidenced by the £30 billion of new finance provided to them by FLA members since the pandemic began.’
WE HERE FOR FORYOU YOU WE ARE HERE 56 | CarDealerMag.co.uk
IN ASSOCIATION WITH
TIME IS MONEY BEN GARSIDE
A MONTHLY LOOK AT THE WORLD OF AUTOMOTIVE FINANCE AND MARKETING
Want to know your future? The best way is to create it
U
Ben Garside is marketing manager for First Response. Call him on 07817 518739 or email ben.garside@frfl.co.uk
nfortunately, the start of this new year hasn’t been all drive and enthusiasm like usual. For instance, I haven’t heard all the ‘New Year – New Me’ conversations happen or seen any 2021 goals going up on people’s desks. In fact, I haven’t physically seen anyone other than my household this year. Most of us were expecting more restrictions, and the prime minister’s press conference on January 4 meant that England joined Scotland, Wales and Northern Ireland in countrywide lockdowns, signifying that we weren’t to leave the house other than for limited, specific reasons. We now have some light at the end of the tunnel, with an exit strategy for the whole of the UK, and I have hope that in 2021 life will return to something like we used to know, but for now we need to find ways to get by, tread water, etc. These next few weeks or months will be tough and not without challenges. I have been reading a lot of posts from people in our industry, with many dealers seemingly confident and returning to click-and-collect or home delivery. However, not everyone is so fortunate, and even those that are operating will be working at significantly lower business levels. So, most would think there isn’t much positivity around. However, I am a great believer in the quotes ‘You make your own luck’ and ‘The best way to predict your future is to create it’. Having a positive mental attitude during a pandemic is tough for some, but the only way to move forward is to start moving. So, I advise anyone in a rut to start self-development of some sort. This could be as simple as reading that book that’s been gathering dust on the shelf, or maybe it’s time to order something new that ticks new boxes – those required to get a new job or start a project you’ve been thinking about for a while. For instance, I’ve just picked up How To Win Friends And Influence People – In The Digital Age. The original publication was released in 1936 but has been adapted to meet today’s communication challenges and will help me improve the way I communicate with customers, team members, friends, etc. There are also many free resources online for those looking at digital marketing. Maybe try Facebook Blueprint or Google Digital Garage, as both are brilliant ways to gain marketing knowledge. Finally, the Open University currently has a great deal of free courses available. They start at just one hour long, but there is a range of courses up to 35 hours. You can start at introductory level or go straight in at advanced – so there’s something for everyone.
Having a positive mental attitude during a pandemic is tough for some, but the only way to move forward is to start moving.
just a phone call away. CarDealerMag.co.uk | 57
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ADVICE TECHNIQUE
Top five tips for selling cars during lockdown
A
training expert has offered his top tips for dealers faced with their third lockdown. The advice ranges from reacting quickly to inquiries and sales teams giving a personalised service through to using the right ‘trail’ questions. Symco Training founder Simon Bowkett believes that as dealers grapple with a third national lockdown, they need to treat inquiries ‘the right way’. He said: ‘After the first lockdown, selling to a remote customer wasn’t hard. You didn’t have to be a genius to sell a used car last summer. It was kind of like shooting fish in a barrel. ‘After the second lockdown, there wasn’t the same pentup demand that we saw in the summer. Now that we are in a third lockdown, we all know that we have to treat every inquiry the right way to maximise every opportunity Car dealer new strip adtoRevised ensure the first-quarter results.’
Simon Bowkett’s top tips for sales teams forced to use remote selling techniques in lockdowns. Respond quickly
While technology allowed dealers to react quickly to customer inquiries during the first lockdown, response times were actually down, says Bowkett. ‘It’s back to shooting fish in a barrel,’ he says. ‘Or that sales people are taking the low-hanging fruit.’ Dealers should remember that when customers ask about a vehicle, they’ve probably already inquired with another five dealerships or more. The time is ticking as soon as the customer has sent the inquiry for a response.
Don’t cut and paste
It’s not just replying to an inquiry in a timely fashion, but it’s also the quality of the response that matters. Don’t use ‘cut and paste’ words in car descriptions, and if you’re using video personalise it to the customer rather than introducing the car in the same, scripted fashion.
Make it personal
There are seven inquiries that dealers’ sales teams need to be proficient in dealing with, for example: ‘Is the car still available?’, ‘What’s your best price?’ and ‘Can you tell me how much my car is worth?’. Each salesperson should have a personalised set of responses and a plan of attack on taking the inquiry to the next level. ‘If you and 4/4/18 12:01 Pageyour 1 team are still dealing with these inquiries with any variation of
Sell yourself
Video walkarounds and demonstrations are expected now, but too many salespeople are falling into the trap of just listing the car’s spec. ‘Think it through. If the customer has done nearly 20 hours of research, they probably know that it’s got alloy wheels,’ says Bowkett. Salespeople should introduce themselves and give ‘face to the name’ in whatever video they create for customers, as ‘people buy people’ when it comes to purchasing a new car.
Trail-close questions
Trail-close questions – where you ensure the car is right for the customer before presenting the deal – are easy in face-toface negotiations, but with a lockdown in force distance sales can make this harder. Dealers should ask their salespeople ‘What trail-close question did you ask the customer?’ and not ‘Have you trail-closed?’, because the salesperson will always state ‘Yes, I think they are going to go ahead with it’, says Bowkett. By finding out what question has actually been asked, dealers will get a better sense of whether the commitment question has been broached or not.
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ADVICE
Q&A
What are car dealers allowed to do during lockdown?
W
ith car dealers across the UK in some form of a lockdown because of the pandemic, businesses are trying to work out how they can still operate while remaining on the right side of the law. In a special Car Dealer Live show broadcast on January 5, the Car Dealer team received more than 50 questions asking for clarification on click-and-collect rules and how businesses can remain open during the lockdowns. You can watch the full broadcast via this link, but here, with the help of legal experts Nona Bowkis and Kiril Moskovchuk at Lawgistics, is a summary of the key issues that dealers need to know to trade lawfully during the new lockdowns. Information here is correct at the time of publication but in the current climate may change at any time. For the latest updates, visit our website at cardealermagazine.co.uk and gov.uk/coronavirus 60 | CarDealerMag.co.uk
Can I offer click-and-collect and click-and-deliver car sales?
In England, yes you can. The government’s guidance isn’t the clearest when it comes to car dealers, but at the moment all non-essential retailers can do ‘click’ services – and that includes car dealers.
What are the click-and-collect laws?
Every sale that occurs from now onwards is a distance sale because it’s not done on the premises. In law, there are three types of sale: on premises, off premises (essentially, home selling) and distance selling. You have to give customers two weeks – 14 days – to change their minds as with any distance sale and you have to give certain paperwork.
What paperwork do I need for distance selling?
Giving the right paperwork tells customers how they can return a car. Dealers can set a mileage limit (our legal experts say 20 miles is plenty and the right paperwork cuts the time for the customer to reject the car). The failure of not giving paperwork means the customer has a year and two weeks to reject for any reason, and you may not be able to make a deduction for usage. If you get the right paperwork, you can protect yourself from consumers who could take advantage. Lawgistics has templates to help dealers with this.
How does click-and-collect work when people are being told to stay home and only go out for essential reasons?
Under the current guidance, click-and-collect is allowed. It’s suggested customers ‘should’ shop locally, but there is an allowance for people to travel if they need to collect an item they’ve chosen to buy. The very nature of click-and-collect is a person leaving their house to pick up an item bought online – and that includes cars. Also, the guidance says people are allowed to leave their homes to fulfil a legal obligation – collecting goods is fulfilling a contractual obligation.
Should I cancel all non-urgent servicing bookings and encourage people to stay at home? No. Car servicing and MOTs are allowed to carry on during lockdown, so it’s not advisable to cancel customers’ bookings.
If a customer comes to collect, does it need to be done off site or can it be on site?
Are service customers allowed to enter the premises and wait?
There’s nothing to say customers can’t do this, but businesses are obliged to do everything in the most Covid-secure way, so a key drop would be preferable.
Are home test drives allowed?
Click-and-collect sales mean exactly that – the deal has to be done before the car is delivered or collected. Customers aren’t paying to test-drive a car. As all sales during the lockdown will be distance sales, customers will get a 14-day cooling-off period, which is in effect their test drive. Remember, with the right paperwork you can set limits for how many miles this can be. You can’t take a car to a customer’s house in England for them to test-drive it before they agree to buy it. At the moment, test drives are allowed in Scotland, but this is likely to change.
I sold a car before lockdown but the customer isn’t collecting for a few days – does this count as a click-and-collect sale?
This depends on when the customer paid the deposit. If the deposit was paid before the car was viewed and test-driven, distance selling rules will probably apply.
I don’t have a service department – can I still operate click-and-collect?
Yes, you can – you don’t need a servicing or an MOT operation to operate ‘click’ services.
Can I allow customers to look round my forecourt if they’re waiting for their car to be serviced?
No – a forecourt or an area where cars are on display, such as a showroom, are closed and customers should be prevented from doing this. Dealers need to make sure their premises don’t look open for sales.
If a customer pays a deposit over the phone without seeing the car, can the deposit be refunded when they arrive?
No. If it were a reservation fee then yes, but as a deposit this isn’t okay. A deposit puts you and the customer into a contract. You can’t get around the rules by taking a deposit and then refunding it and doing the deal as you would do normally – that isn’t click-and-collect.
Can dealers in Scotland still operate ‘outdoor car lots’ as previously allowed?
At the moment, guidance on the Scottish government website says this is allowed.
Technically, it needs to be off site if a dealership doesn’t have servicing workshops, as their forecourt would be closed off for access. However, that’s sticking rigidly to the guidance. Our legal experts say that as long as the car sales/display area is shut and the forecourt clearly fenced off, the customer can visit to fill out paperwork and collect the car. This could be a small, fenced-off, Covid-secure area in the doorway of the dealership. All of this must be in accordance with your Covid-19 risk assessment, and measures (such as social distancing and the wearing of face masks) must be in place.
For a click-and-collect sale, can I just take a deposit with the customer paying for the car by bank transfer on collection? Yes, you can, but it is still a distance sale. The rule is, if the customer has put any money down (a deposit, a proportion or the full balance) on a car without seeing it first, it’s classed as a distance sale.
Click here to watch the full Car Dealer Live video CarDealerMag.co.uk | 61
EXTRA COVER LOOKING AHEAD TO A SAFE SPRING
The countdown to reopening: Keeping staff and customers safe Risk management specialist Gallagher highlights steps you can take to help prepare your dealership to reopen safely following the latest national lockdown.
B
y now, staff in dealerships across the UK will be familiar with Covid-19 workplace protocols and government guidance on limiting the transmission of the virus. As we’re forced to grapple with a further lockdown this winter, it’s an ideal time to reassess these procedures and begin the preparations to open your glistening, sanitised dealership doors once again. We have put together some reminders to help you and your team reduce risk when faceto-face service is able to resume. Fresh air ventilation One of the positive things about the structure and layout of a car dealership is that it is typically light and airy, with high ceilings and dedicated ‘private’ areas for customers to speak with their sales executive. However, you should also consider ways to improve ventilation. Where possible, open doors and windows to increase and maintain the supply of fresh air. Mechanical systems such as ceiling fans can also help to prevent pockets of stagnant air in occupied spaces, provided there is good ventilation in the area. Air conditioning While customers are absent from the dealership, it’s an ideal time to carry out maintenance on your air conditioning systems – especially if they have not been in regular use. Usually when air conditioning is used, windows and doors are closed to help maintain the required temperature. However, in this case the opposite is required – you must also have an adequate supply of fresh air and ventilation. If not, there is a danger that virus droplets from an infected person could be spread further than they would normally. If you use a centralised ventilation system that removes and circulates air to different rooms or areas, it is recommended that you turn off recirculation and use a fresh air supply. Likewise, if an employee or customer is driving a vehicle, ensure the fresh air circulation setting is selected. Air conditioning systems that use a mixture of extracted air from the room with fresh air and then return it to the room can be used, as this increases the fresh air ventilation rate. Deep cleaning If you have employees still working on-site or visiting the showroom during lockdown, the usual Covid-19 cleaning regimes should be adhered to, according to government guidance on decontamination1. During this time, and also once the dealership is open again, deep cleaning should be
Insurers will expect organisations to be compliant with existing legal obligations regarding their duty of care.
For more information please contact:
T: 0800 612 2284 E: automotive_enquiries@ajg.com W: www.ajg.com/uk/automotive
CONDITIONS AND LIMITATIONS This note is not intended to give legal or financial advice, and, accordingly, it should not be relied upon for such. It should not be regarded as a comprehensive statement of the law and/or market practice in this area. In preparing this note we have relied on information sourced from third parties and we make no claims as to the completeness or accuracy of the information contained herein. It reflects our understanding as at 11/01/21, but you will recognise that matters concerning Covid-19 are fast changing across the world. You should not act upon information in this bulletin nor determine not to act without first seeking specific legal and/or specialist advice. Our advice to our clients is as an insurance broker and is provided subject to specific terms and conditions, the terms of which take precedence over any representations in this document. No third party to whom this is passed can rely on it. We and our officers, employees or agents shall not be responsible for any loss whatsoever arising from the recipient’s reliance upon any information we provide herein and exclude liability for the content to fullest extent permitted by law. Should you require advice about your specific insurance arrangements or specific claim circumstances, please get in touch with your usual contact at Gallagher.
62 | CarDealerMag.co.uk
...in association with Gallagher
About Gallagher
carried out to offer further protection to staff and customers. This can be done through traditional deep cleaning services or misting treatments. Throughout the Covid-19 outbreak, Gallagher has been supporting clients with an antiviral disinfecting service provided through one of our partners and suitable for application to both property and vehicles. The service uses hospital-grade disinfectant that has antiviral properties that remain effective for up to seven days, and is carried out by trained technicians who use specialist equipment and protective clothing. Please get in touch with our team if you would like to find out more. Staff training If any new employees have joined your team recently, you must ensure they receive the appropriate Covid-specific health and safety training. The HSE has produced a guide for employers on how to talk to workers2 about reducing the risk of the spread of the virus, covering everything from organising the workplace to cleaning and sanitising. It’s just as important for your existing staff to revisit the government guidance and receive refresher training. Covid-19 risk assessment validation While the health, safety and welfare of staff and customers is key, there are also legal and financial implications to consider when implementing Covid-19 protocols. Insurers will expect organisations to be compliant with existing legal obligations regarding their duty of care. Having a validated and successfully implemented Covid-19 risk assessment will enhance your mitigation and defensibility should a Covid-19 incident occur at your dealership. This is where we can offer valuable support. A Gallagher risk management consultant can arrange an initial video call with you before undertaking an independent, professional review of your Covid-19 risk assessment against existing legislation, Covid-19 guidance and protocols. Please get in touch to find out more about our Covid-19 risk assessment validation or deep cleaning service, or if you would like to speak to a Gallagher specialist about your insurance requirements. Sources: 1. https://www.gov.uk/government/publications/covid-19-decontamination-in-non-healthcare-settings/covid-19-decontamination-in-non-healthcare-settings 2. https://www.hse.gov.uk/coronavirus/assets/docs/talking-with-your-workers.pdf
Founded by Arthur J. Gallagher in Chicago in 1927, Gallagher has grown to be one of the leading insurance brokerage, risk management, and human capital consultancy companies in the world. With a truly global reach, our organisation employs over 33,000 people and our international network provides services in more than 150 countries. Our values are core to our culture. Passionate service, strategic innovation, and ethical behaviour form the basis of how we do business. ajg.com/uk gallagher-uk @GallagherUK 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. FP9532020
Daniel Little is an account executive of the automotive practice at commercial insurance broker and risk management specialist Gallagher. CarDealerMag.co.uk | 63
DATA FILE
2020
LCV NEWS
Van market ends the year down by 20 per cent by John Bowman john@blackballmedia.co.uk VAN registrations in the UK plummeted by 20 per cent in 2020, said the SMMT. A total of 292,657 vehicles were registered during the year – 73,121 fewer than in 2019 – as the impact of the pandemic and uncertainty over the UK’s future relationship with the EU cut demand towards the end of the year. Registrations in December dropped by one per cent to 27, 283 after three months of growth. Last year was also the first sub-300,000-unit year since 2013, when 271,013 units were registered. The most popular van by far in 2020 was the Ford Transit Custom, which notched up 43,551 sales. It was followed by the Mercedes-Benz Sprinter at 23,506 and the Ford Transit at 21,724.
REGISTRATIONS OF NEW COMMERCIAL VEHICLES LESS THAN 3.5 TONNES Marque
Ford Volkswagen Vauxhall Peugeot Citroen Mercedes Renault Nissan Mitsubishi Fiat Toyota MAN Iveco Renault Trucks Isuzu Isuzu Trucks Land Rover Maxus Fuso SsangYong LDV LEVC Hyundai Total light CV
Figures supplied by SMMT
December 2020 2020
10,282 3,428 2,817
% market share 37.69 12.56 10.33
December 2019
2019
7,780 4,284 3,228
% market share 28.24 15.55 11.72
% change
32.16 -19.98 -12.73
2020
Year-to-date
94,800 32,349 31,096
% market share 32.39 11.05 10.63
2019
% change
117,500 42,444 35,949
% market share 32.12 11.60 9.83
2,141
7.85
2,738
9.94
-21.80
25,639
8.76
32,660
8.93
-21.50
2,090 2,060 950 646 628 603 487 240 223 207 188 96 65 40 27 23 21 21 0 27,283
7.66 7.55 3.48 2.37 2.30 2.21 1.78 0.88 0.82 0.76 0.69 0.35 0.24 0.15 0.10 0.08 0.08 0.08 0.00 100.00
1,179 2,612 1,790 916 602 505 621 119 186 169 509 54 67 0 16 24 152 0 0 27,551
4.28 9.48 6.50 3.32 2.19 1.83 2.25 0.43 0.68 0.61 1.85 0.20 0.24 0.00 0.06 0.09 0.55 0.00 0.00 100.00
77.27 -21.13 -46.93 -29.48 4.32 19.41 -21.58 101.68 19.89 22.49 -63.06 77.78 -2.99 0.00 68.75 -4.17 -86.18 0.00 0.00 -0.97
22,688 30,439 11,210 9,241 5,869 7,796 8,004 2,574 2,406 1,520 3,154 1,000 1,276 115 236 406 804 35 0 292,657
7.75 10.40 3.83 3.16 2.01 2.66 2.73 0.88 0.82 0.52 1.08 0.34 0.44 0.04 0.08 0.14 0.27 0.01 0.00 100.00
27,085 36,982 18,184 12,926 10,407 8,636 8,490 1,598 2,698 1,455 4,770 853 1,494 0 195 578 788 0 86 365,778
7.40 10.11 4.97 3.53 2.85 2.36 2.32 0.44 0.74 0.40 1.30 0.23 0.41 0.00 0.05 0.16 0.22 0.00 0.02 100.00
-16.23 -17.69 -38.35 -28.51 -43.61 -9.73 -5.72 61.08 -10.82 4.47 -33.88 17.23 -14.59 0.00 21.03 -29.76 2.03 0.00 0.00 -19.99
REGISTRATIONS OF NEW COMMERCIAL VEHICLES 3.5 TONNES TO 6.0 TONNES Marque
Peugeot Mercedes Fiat Ford Citroen Iveco Volkswagen MAN Isuzu Trucks Renault Trucks Other imports Vauxhall Renault Nissan Total heavy CV
-19.32 -23.78 -13.50
December 2020 2020
173 134 119 91 44 18 15 6 6 5 2 2 1 0 616
64 | CarDealerMag.co.uk
% market share
28.08 21.75 19.32 14.77 7.14 2.92 2.44 0.97 0.97 0.81 0.32 0.32 0.16 0.00 100.00
December 2019
2019
468 160 114 232 19 18 8 8 0 0 0 1 0 0 1,028
% market share
% change
45.53 15.56 11.09 22.57 1.85 1.75 0.78 0.78 0.00 0.00 0.00 0.10 0.00 0.00 100.00
-63.03 -16.25 4.39 -60.78 131.58 0.00 87.50 -25.00 0.00 0.00 0.00 100.00 0.00 0.00 -40.08
2020
1,688 1,510 1,421 1,256 166 223 196 74 22 10 161 21 9 0 6,757
Figures supplied by SMMT
Year-to-date
% market share
24.98 22.35 21.03 18.59 2.46 3.30 2.90 1.10 0.33 0.15 2.38 0.31 0.13 0.00 100.00
2019
2,763 1,782 1,807 1,219 258 479 108 76 18 5 0 125 53 2 8,695
% market share
% change
31.78 20.49 20.78 14.02 2.97 5.51 1.24 0.87 0.21 0.06 0.00 1.44 0.61 0.02 100.00
-38.91 -15.26 -21.36 3.04 -35.66 -53.44 81.48 -2.63 22.22 100.00 0.00 -83.20 -83.02 0.00 -22.29
Figures supplied by SMMT
DATA FILE
SUPPLIERS GUIDE
LOOKING FOR A MOTOR TRADE SUPPLIER? YOU CAN FIND THE DETAILS OF SELECTED COMPANIES HERE Auctions & Trade-To-Trade Sales
Finance
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BCA
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iVendi
Ben
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GForces
HR Manager
Lawgistics
Dealer 360
Warranty Administration Services
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Data
Insurance
Marketing, PR & Video
Vehicle Tracking
Warranty Providers
Real World Analytics
Tradesure
OnCue Communications
Meta Trak
Warrantywise
Finance
Key Control
Marketing, PR & Video
Warranty Providers
Warranty Providers
Blue Motor Finance
Keytracker
Marketing Delivery
Autoprotect
WMS
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W: tradesureinsurance.co.uk T: 0121 248 9313 Info: A friendly team in a family-run business, we provide motor trade insurance to full- and part-time motor traders in all areas of the UK.
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W: oncuecomms.com T: 020 8125 3880 Info: We are a leading provider of PR, video and events services to the automotive industry. The PR team has a proven track record of securing high-value, big-impact media coverage.
W: marketingdelivery.co.uk/ T: 01892 599911 E: get.in.touch@marketingdelivery.co.uk Info: Our SocialStock helps target prospects with tailored stock remarketing and social media advertising tools, and automated lead capture for Facebook.
W: metatrak.co.uk T: 020 8867 2340 E: enquiries@metatrak.co.uk Info: Total vehicle security. Clever tracking technology, advanced immobilisation, 24/7 monitoring and an easy-to-use app. Security. Connectivity. Peace of mind.
W: autoprotect.co.uk
T: 01279 406888 E: sales@autoprotect.net Info: AutoProtect offers a full portfolio of award-winning protection products, including GAP. We lead the market with an ‘Excellent’ rating on Trustpilot.
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Finance
Key Control
Oil & Lubricants
Warranty Providers
Website Design & Digital Marketing
Close Brothers Motor Finance
Traka
Mobil™
Car Care Plan
Bluesky Interactive
W: closemotorfinance.co.uk/ Info: Close Brothers Motor Finance are a specialist finance provider, working with over 8,000 dealer partners to offer flexible finance solutions for car, motorcycle and LCV customers.
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Finance
Lead Management
Recruitment
Warranty Providers
Website Design & Digital Marketing
First Response
GardX AD-Vantage
WeRecruit Auto
Händler Protect
Haswent
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W: mobil.co.uk T: 0800 0857 420 Info: Whether using Mobil 1™ or Mobil Super™, Mobil™ engine oils meet or exceed the latest standards of the oil industry and vehicle manufacturers.
W: werecruitauto.co.uk T: 01603 550041 Info: Permanent recruitment – here to assist businesses within the automotive sector find the best fit for their company in terms of skillset, experience and culture.
W: carcareplan.com T: 0344 573 8000 Info: Car Care Plan is a leading provider of motor protection products, trusted around the world to deliver quality protection with integrity and a customer-oriented outlook.
W: handlerprotect.com T: 0800 088 7889 E: sales@handlerprotect.com Info: Händler Protect is an exclusive dealer warranty provider. Proud to partner and represent more than 1,000-plus ‘active’ independent motor dealers across the UK each month.
W: blueskyinteractive.co.uk T: 01926 651000 Info: Bluesky Interactive drive dealer websites and digital marketing forward thanks to game-changing innovation, the latest technology and our exceptional relationships with our clients.
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To have your details included email sales@blackballmedia.co.uk and ask for Suppliers Guide listings CarDealerMag.co.uk | 65
Changes in FCA regulation don’t have to be scary, let’s go on the journey
together We’re your partner to support you through this new regulation. Together, we’ll make the complex simple, we’ll minimise disruption and we’ll enhance customer experience, allowing you to focus on what you do best.
Let’s do more together. 66 | closemotorfinance.co.uk/fca-changes CarDealerMag.co.uk
Finance Compliance Funding Insight
LONG-TERMERS
AUDI S4 AVANT
Clang! The damage on the S4’s doors
THE KNOWLEDGE Audi S4 Avant
Things haven’t gone smoothly for Jack Evans in the diesel-powered estate.
I
’m the type of person who doesn’t like to think about something good happening in case it doesn’t. If you try not to think about the weather when you’re going on holiday, it’s bound to be great. Don’t consider the traffic before setting off and there’s a good chance the roads will be clear. That sort of thing. So when the kind people at Audi said I could specify a new S4 Avant as ‘my’ next longterm loan, I was overwhelmed with the same feelings. Given the year we’d had, I was adamant that something would put a spanner in the works. But no, several months after choosing ‘my’ car, I got the call to say that the S4 had landed in the UK from Germany and was going through final inspections before delivery. I’d been as subtle as possible with my exterior spec: dark blue (or Navarra Blue, in Audi-speak) with the Black Edition package that trades all of the S4’s usually satin silver finishers for undercover gloss black elements. I’d thrown a curveball with the interior, however, optioning in red leather seats to contrast with the blue exterior. Not traditional, I’ll admit, but I’ve always thought that red seats looked the absolute business. Following that, I added the comfort and sound pack (£1,395), which brings keyless entry, an upgraded stereo and a 360-degree parking camera. After this, I left the options list untroubled – although the car still came out at a considerable £53,395. The big day arrived and there it stood – just as the configurator had shown and despite my initial fears. The metallic paint worked well with the red seats, with under 300 miles on the clock this was as box-fresh as cars come, and the black accents helped the S4 to look even more undercover. Perfect – to my eyes at least. I used the throttle like I was wearing crystal trainers – I’ve been careful not to lean on the engine too heavily until it passes at least 1,000 miles. And then it happened... I was at my desk at home when I heard a soft ‘thump’ outside. As is the nature of my job I’ve often got a number of cars, but I’ve tried to train myself to not get worried about noises outside to avoid spending hours of my day venturing out to check a car over each and every time there’s a strange sound. But this time it was different. I noticed that a car had got far too close to the S4 for comfort so headed out to give it a gander. Sure enough, the silver car had swiped along the side of the Audi’s exterior, clanging into the area between the front and rear doors. It looked a mess, with a huge panel dent only being outgunned by some seriously scratched paint. A young lad had tried to do a three-point turn on the road and got it a little bit wrong. It was a classic and unashamed accident and thankfully no one was injured or hurt. But my poor S4 was looking decidedly sorry for itself just a few days after arriving full of charm and swagger. A call to Audi later and it was returned for inspection and repair. What did I say about not thinking about good things? I thought I’d got through this without it playing out as badly as I could imagine, but apparently not. However, accidents do happen, and given how 2020 was, it’s not something to dwell on. Still, I’ll be looking forward to the S4 reappearing once it’s finished treatment at the Vorsprung Durch Technik hospital. But I’ll be trying not to think about it too much...
Price (as tested): £53,395 Engine: 3.0-litre turbocharged diesel Power: 342bhp Torque: 700Nm 0-60mph: 4.7 seconds Max speed: 155mph Emissions: 166g/km CO2 Fuel economy: 39.8mpg Mileage: 293
This month’s highlight: Seeing the car arrive and looking just as it did on Audi’s configurator.
OTHER CARS WE’RE DRIVING
SsangYong Musso LWB Rhino Mileage: 3,353 Two’s a crowd! Having not seen many Mussos on the road, we welcomed the chance to park up next to another one.
Skoda Superb iV Mileage: 1,012
We’ve swapped our ‘old’ Skoda Superb for a new one. And this time it’s an estate. CarDealerMag.co.uk | 67
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