Car Dealer Magazine: Issue 159

TESTING TIMES!

Issue 159 | June 2021 | CarDealerMag.co.uk | £6

VANTASTIC!

LCV BOOM SEES BUSIEST APRIL EVER – BUT WILL IT LAST?

PLUS: 20 YEARS OF BMW MINI

NEWS • STELLANTIS BOMBSHELL • PENDRAGON REVOLT FAILS • VW AGENCY SALES PLAN • MARSHALL FURLOUGH VOW • FCA STRIKES OFF DEALERS • FOURTH-GENERATION FABIA • GENESIS COMING TO EUROPE

FIRST DRIVES: MINI HATCH + VOLVO XC40 RECHARGE + HYUNDAI KONA + LOTUS EXIGE SPORT FINAL EDITION REVIEWED

ROBERT FORRESTER VERTU BOSS ON USED CAR DISRUPTORS, PROFITS AND FURLOUGH CASH

INVESTIGATION: COULD CRISIS IN NEW CAR MARKET SUPERCHARGE USED CAR PRICES?

PLUS: CAR DEALER POWER 2021 LAUNCHED

The UK’s Best Used Car Warranty

02 | CarDealerMag.co.uk

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THE BOSS FOUNDER James Baggott

james@thebaize.com Twitter: @CarDealerEd

EDITORIAL CHIEF SUB-EDITOR John Bowman

john@blackballmedia.co.uk

HEAD OF CONTENT Jack Evans

jack@blackballmedia.co.uk Twitter: @jackrober

MULTIMEDIA MANAGER Jon Reay jon@blackballmedia.co.uk Twitter: @JonReay

HEAD OF DESIGN Graeme Windell

graeme@blackballmedia.co.uk Twitter: @graemewindell

CONTRIBUTORS James Batchelor, Darren Cassey, Rebecca Chaplin, Nigel Swan, Ted Welford

FINANCE

FINANCE MANAGER Kate Gordon

kate@blackballmedia.co.uk

ADVERTISING SALES MANAGER Kevin Day

kev@blackballmedia.co.uk

ACCOUNT MANAGER Michelle Searle

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WELCOME. T

his isn’t exactly the quietest industry to work in, is it? Turn your back for five minutes and you’re in danger of coming back to find your dealership closed, Waitrose stocking used cars alongside the cucumbers, and robots running your servicing department.

Okay, I’m being facetious, but you get my point. I was chatting to a dealer boss recently who told me he’s never seen pace quite like this. And he’s been in the game a long time.

Let’s take this week for example. At the time of writing, a mere few hours before the deadline for this digital magazine, we’ve already had a manufacturing group put all its dealers on notice, another say it’s planning to move to an agency sales model, a shareholder revolt at one group, and another promising to pay a large chunk of furlough cash back.

Let’s start with the first. Stellantis called its dealers together for a last-minute meeting where it told all its partners they were being put on two years’ notice.

The mass firing-and-rehiring exercise appears to be an attempt to realign the manufacturers’ representation and ‘right-size’ the mix. Let’s face it, as tough as it is for the dealers involved, it needs to be done, as the umbrella group for all those brands should be making efficiencies.

There’s no point in bringing so many brands under one manufacturer group roof and then having, say, six different partners representing them in the same town. We got wind of the meeting about five days ahead of the call and it was so hush-hush that it was never going to be good news.

Normally, news leaks out when manufacturers are planning big announcements, but this time the dealers were completely in the dark. In fact, those I spoke to were pretty worried by it and it appears rightly so.

VW Group’s move to an agency model for sales of its electric vehicles was less well contained. We were shown a copy of the letter from boss Alex Smith that said the move was being planned, and then an hour or so after publishing the story on our website, VW confirmed it was. Most dealers I’ve spoken to largely welcome it – but they want to ensure the cash they make doesn’t change. No surprise there.

Elsewhere, the differing approaches from two listed dealer groups has been put into stark focus. Pendragon bosses faced a shareholder revolt at their AGM over pay after a new deal meant boss Bill Berman could earn more than £3.2m.

One investor wrote to other shareholders to plead with them to vote against the deal but it narrowly scraped through. The message to the Pendragon bosses was clear, though – shareholders weren’t happy. Over in the Marshall camp, ahead of its AGM (where things went comparatively smoothly), Daksh Gupta announced that it’d be paying back its furlough cash and retail rates claimed this year. The group was the first to make the bold move and came a few days after others, including Vertu’s Robert Forrester, said they had no plans to do the same.

And that’s just a few days in the life of the motor trade. Like I said, blink and you’ll think you’ve been asleep for years. Luckily, the Car Dealer team is around every day to keep you posted. Enjoy the issue.

Turn your back for five minutes and you’re in danger of coming back to find your dealership closed and Waitrose stocking used cars alongside the cucumbers.

JAMES BAGGOTT Founder, Car Dealer CarDealerMag.co.uk | 03

04 | CarDealerMag.co.uk

IGNITION. ISSUE 159 | JUNE 2021

10 CONTENTS

36 6

13 22 48 INTERVIEW

‘I think it’s a tough gig actually to come into the UK and start disrupting it.’

6

COMMENT

There’s a reason the rich are rich, and it’s nothing to do with mortgage rates or the best PCP deals.

18

FEATURE

It soon became clear BMW had crafted a car that wasn’t just great to look at but was great to drive too.

38

Interview: Robert Forrester Power Awards 2021 Car news round-up News digest Feedback Supplier news Cool stuff Lightyear One Car Dealer Live Finance

6 13 22 24 42 44 47 48 52 54

COMMENT James Baggott Big Mike James Litton

17 18 21

FORECOURT Lotus Exige Volvo XC40 Recharge Hyundai Kona Mini Hatch Cooper S Sport

30 32 34 36

INVESTIGATIONS Boom time for LCVs The semiconductor effect

10 14

DATA FILE The Statistics LCV news Suppliers Guide Long-termers

56 58 60 61

DATA FILE

‘After one of the darkest years in automotive history, there is light at the end of the tunnel.’

56 CarDealerMag.co.uk | 05

INTERVIEW

‘I think it’s a tough gig actually to come into the UK and start disrupting it’ Vertu Motors chief executive Robert Forrester talks to James Baggott about its latest results, disruptors – and why he believes furlough is for keeps...

U

sed car disruptors – including Cazoo and Cinch – bring ‘nothing, if anything’ new to the market, claims Vertu Motors boss Robert Forrester.

In a strong rebuke of the new entrants to the used car market, Forrester said the only thing that they’ve caused the industry to do is focus more on their own businesses.

In his report on the group’s financial performance for the past year – which reveals the group made a profit of £24.6m – Forrester dismissed the new entrants to the market.

He wrote: ‘Disruptors who have recently entered the used car market have very little, if anything, to add to the sector in terms of customer proposition or experience, and they do not sell new cars or in some cases support customers thereafter with their servicing needs.

‘The best in class in the sector, and Vertu in particular, have a fully established bricksand-clicks platform and sell far more used vehicles than these new entrants.’

Speaking to Car Dealer Live in an exclusive interview, Forrester said the likes of Cazoo had actually helped his business.

In a video interview that you can watch by clicking the links below, he said: ‘I wouldn’t say they don’t worry me. I would say they have been very, very helpful to everybody in the industry in a number of ways.

‘One, it has shot a full beam on the used car market and its potential in the United Kingdom, and for a quoted plc standpoint that is not unhelpful.

‘I think it’s a tough gig actually to come into the UK and start disrupting it.

‘Is it something we should be complacent on? No. It has forced everyone to be very clinically pure as to what they are trying to do, their capability and are they as good as they think.

‘What are [the disruptors] doing that we can’t? Very little, if anything, as it happens.’

Disruptors who have recently entered the used car market have very little to add to the sector.

Furlough In its results, Vertu revealed it received £27.8m in furlough support from the government during the financial year, which ended on February 28.

In March and April this year the group received £400,000 in furlough cash.

Other industries that saw stores shut by lockdowns but continued to enjoy success online have seen some firms decide to repay their furlough cash. One of the latest was Hotel Chocolat, which returned £3.1m of furlough cash after strong Easter sales.

Forrester is adamant that the group will not be repaying any, though, and the discussion in the board lasted ‘45 seconds’ as to whether it should.

He said: ‘The government closed down our businesses by diktat with very little warning, causing considerable disruption and dislocation and they provided financial support to offset that.

‘That was what the support was there for – to make sure we didn’t come out of it in a 06 | CarDealerMag.co.uk

VERTU MOTORS Position: 2019 turnover: 2019 EBITDA: ROS:

6th £3bn £40.7m 0.6%

Click here to see the Car Dealer Top 100 list

much weaker position than we went in. We are doing exactly what the government want us to do and that’s to use that money to reinvest and create jobs and be powerful as the economy grows.’

Forrester added he had no intention of repaying the £400k of support used so far this financial year and wouldn’t change his mind even if another dealer group decided to repay the money that it had received.

He said: ‘The economy has gone through a massive shock.

‘Some people have made a loss, despite all the government money, and I have never quite got my mind around [the idea] that because our business has performed [well] I have to pay it back. It’s not something that enters my mind very often.’

In the video interview, a full transcript of which you can read below, he also talks about his plans for acquisitions, why he thinks profitability will grow again this year and the pressure in his used car departments.

What surprised you the most about your results?

That we made a profit.

We did a forecast this time last year when we were in the depths of lockdown one and we were nowhere near a profit. April was not in any way optimistic.

The way the business, and the industry actually, has played the cards it had been given and gone through quite a period of adaptation and change, the upshot is that between 1 January and 1 March, despite the fact we were absolutely locked down and closed in terms of no showrooms or test drives, we sold 38,000 cars and vans.

Well, dear me, you wouldn’t have put money on that this time last year.

So, I think the biggest surprise is that we managed to create value and keep the business with some degree of momentum, despite being buffeted by successive swipes by the government locking us down.

You allude to some confusion around online sales – what do you think an online sale looks like?

Well, my new way of looking at it is an online sale comes from the web in its general view and there is a degree of interaction with a dealership, and there’s a large amount of online interaction – could be video chat, video sent or deal shared or offered.

We need to be pragmatic that when we talk about online retailing that is what we’re talking about.

Now, if you’d asked me three months ago I’d have given you a very intellectual, purist’s response that an online sale is a customer who is engaging in pure e-commerce and never talks to anybody.

I think there is pure online e-com, omnichannel, and traditional.

Well, I’m fighting a losing battle here so

THE FULL INTERVIEW I’ve just given up.

What are your thoughts on the used car disruptors?

I wouldn’t say they don’t worry me. I would say they have been very, very helpful to everybody in the industry in a number of ways.

One, it has shot a full beam on the used car market and its potential in the United Kingdom, and for a quoted plc standpoint that is not unhelpful.

It has thrown up some very interesting comparisons about how big the UK groups are.

I think if I was going to leave Vertu and go and set up an online used car retailer I wouldn’t start here – I’d go to Europe, because they’re rubbish actually at used cars, in my opinion.

Whereas actually if you look at the mega groups we’ve got in the UK, with strong digital offerings, strong brands and strong capability, from the ’70s onwards it has been the most sophisticated used car market in the world.

You’ve had the likes of Sir Peter Vardy – people who have really professionalised used cars. You can’t mention used cars without mentioning Arnold Clark either.

I think it’s a tough gig actually to come into the UK and start disrupting it.

Is it something we should be complacent on? No. It has forced everyone to be very clinically pure as to what they are trying to do, their capability and are they as good as they think.

Vertu’s Farnell Land Rover dealership in Nelson

What are [the disruptors] doing that we can’t? Very little, if anything, as it happens.

In fact, the only thing the competitors do that we don’t is have branded lorries going up and down the country giving a branded customer experience.

That is the only potential gap. But what we do do is sell new cars. We have the manufacturers behind us pumping in millions in marketing, we’ve got an aftersales business which is heavily linked to the sales business, we have massive databases, our customers visit us every 12 months for a service and we see them. So I don’t feel complacent.

The concern is the budgets – and I think the battle is in marketing. We’ve got strategies around that. We’ve now gone down to three brands.

We announced this morning that the Farnell Jaguar Land Rover business will be rebranded Vertu.

We have a goal to make Vertu the leading premium brand in the UK from a brand awareness perspective, which it isn’t today.

Bristol Street Motors is already the second biggest in terms of franchised automotive with regards to promoted brand awareness.

It’s double that of the leading disruptor – double.

Now that in my opinion will close because it’s like an arms race – and that’s because, let’s be fair, they’ve got a lot more money than we have.

There’s going to be a real battle for brand awareness. I don’t think it’s a battle for technology.

What about used car supply?

The biggest advantage is we have this big database of new car customers who like to change their car every two to three years and then we bring the part-exchanges in.

It’s not to say that other people can’t

Click here to watch the Robert Forrester interview

CarDealerMag.co.uk | 07

find cars – they can do deals with leasing companies or whatever – but one of the challenges is there is a shortage of used cars when the market is absolutely on fire, as it was this time last year.

I think one of the great challenges in the next nine months will be procuring the right number of used cars at the right price to help fulfil demand.

Do you think we’ll see supergroups emerge?

I think there will be a general move towards consolidation. I think some of the larger groups will get larger. We’ll grow in three, probably four ways.

One will be that our marketing will give us additional market share. We have to be very good at that and I think we’re getting better at it.

Secondly, multi-franchising. So, putting an extra franchise in a single dealership format, giving us extra aftersales absorption and greater new car market share is important.

Then we have our ancillary businesses.

We do have quite a lot that aren’t dealerships that have sort of been hidden away for a while. Vans Direct is a good example.

We also have one of the largest retailers of taxis in the United Kingdom, which has been a real shocker, as you’d expect in the past 12 months, but is now starting to come back.

It’s really interesting there as we have everyone back from furlough and we’re starting to see a big rise in the number of taxis we’re selling.

I would expect us to be able to undertake acquisitions over the next 12 months.

Are there going to be mega supergroups?

Well, I think the direction of travel is probably there.

There are some much bigger groups in Europe interestingly than the UK groups and the manufacturers will have a say in that.

We don’t operate in a field where we are completely independent. We have to work with the manufacturers because we operate their franchises.

But I think there is more of a mood among the manufacturers that they’d like to have larger groups.

We have some manufacturers where we are eight, 10, 12 per cent of their volume. As long as we perform on customer satisfaction and volume and we operate in the spirit of partnership then that’s okay.

You don’t want to be too exposed either way. You don’t want to be too exposed to one manufacturer and they don’t want to be

08 | CarDealerMag.co.uk

too exposed to one group. But I do think there is scope for much larger groups in the UK. The bottom line is we have 4.1 per cent of the new car market in the UK…

all the government money, and I have never quite got my mind around [the idea] that because our business has performed [well] I have to pay it back. It’s not something that enters my mind very often.

Government support – was there a board discussion about paying back?

I think it lasted about 45 seconds. The government closed down our businesses by diktat with very little warning, causing considerable disruption and dislocation and they provided financial support to offset that.

That was what the support was there for – to make sure we didn’t come out of it in a much weaker position than we went in.

We are doing exactly what the government want us to do and that’s to use that money to reinvest and create jobs and be powerful as the economy grows.

What if other car businesses decide to do it? Would you change your mind?

No.

The government closed down our businesses by diktat with very little warning, causing considerable disruption and dislocation.

In this financial year you have claimed £400k at the same time as record profits.

Will you pay that back?

No. This isn’t a thing for me – if we were in a different sector. In March, which was the biggest financial month of the year, not a single person could come into a showroom or do a test drive.

Not because we decided to close but because the government shut us down.

I think the numbers are very small in the context to the overall profitability, so we don’t feel we are hamstrung in terms of the normal things a capitalist company would like to do like pay dividends or do share buybacks and things like that.

We don’t intend, unless the government pulls another one and locks us down again, that we anticipate using any furlough money or anything like that.

The economy has gone through a massive shock. There was absolutely no doubt about that.

Some people have made a loss, despite

Will you now be able to take a breather after a tough year?

We didn’t have a tough year, we had a tough week actually.

We had a very, very tough week when Boris came on the telly at 9pm and closed our businesses down. That was the worst week. It was incredibly difficult for everyone in the sector.

One thing I would say is the sector as a whole worked together brilliantly. The NFDA did a cracking job, but the way the CEOs got together and compared notes on what to do with this completely unprecedented situation, almost friends actually.

I think we got a lot closer as an industry and I think that worked really well because it’s a fairly lonely job at times.

Profitability will grow again this year, you say. What will that be driven by?

There are some uncertainties around Covid and government action, which we have to be mindful of as we can’t plan for that.

The second element is clearly the new car dislocation around semiconductors and that feeding into used cars.

So, there are some interesting clouds.

But the bottom line is the business has got momentum, marketing is going well, colleagues are working hard and satisfaction is at an all-time record, so there’s a lot of positives. So, given the fact we have taken the cost base down by £10m, we are actually in a very good position notwithstanding Chinese satellites landing on dealerships or what have you, so we should be okay.

The opportunities are there to run the businesses very tightly and at each point look at things like used car prices – are we going volume or price, just running it as best we can?

Then we have a lot of acquisitions and it’s about moving them to produce the returns they can.

We are on a journey with that and I am pleased with where we have got to do with that but there’s still a long way to go with that.

I think the management and the colleagues have done a really good job.

Click here to watch the Robert Forrester interview

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CarDealerMag.co.uk | 09

INVESTIGATION

LCV boom sees busiest April ever – but will it last?

Van franchises are seriously hot property at the moment, helped by a shift in consumer habits. However, supply is struggling to keep up with demand.

TOP

B

ack in April 2020, the best-selling vehicle in the UK was the Mercedes-Benz Sprinter. A reflection on the bizarre times in which we were living and, to a lesser extent, continue to do so, as car dealerships shut up shop and supermarkets clamoured to catch up with the incredible demand for online shopping.

Wind the clock forward a year and a nervous optimism has returned to the car industry, but alongside it demand for light commercials continues unabated.

Indeed, the light commercial vehicle market recorded its busiest April this year since records began, according to the Society of Motor Manufacturers and Traders (SMMT). It said that 30,440 new vans were registered during the fourth month of the year – an eightfold increase on the same month of 2020.

Registrations were also ahead of the five-year average, with April 2021 up by 23.2 per cent.

With some 127,796 vans registered so far in 2021, uptake has returned to levels last seen in 2019 – and they’d be even higher if supply could keep up with demand.

SMMT chief executive Mike Hawes said: ‘Businesses are investing in new vehicles as they grow in confidence, driven by a more positive economic outlook stimulated by the vaccine rollout.

‘There has been particular uplift in larger van uptake, both from established demand in home delivery, but also more broadly as other sectors emerge from lockdown looking to maximise their payload efficiency.

‘With a fragile supply chain still subject to risk of disruption and ongoing Covid restrictions, there is some way to go before we can say business is back to normal, but after a very difficult year, the outlook is much brighter.’

From a dealer’s perspective, a van franchise is seriously hot property right now, not least because the experience of multiple national lockdowns has changed consumer habits forever.

According to research from Deloitte*, the first half of 2020 saw the equivalent of five years of growth in online shopping, and despite the high street now being largely reopen, it’s a trend that’s showing no signs of reversing any time soon.

‘We have a new baseline for e-commerce sales which will grow through 2021 and beyond, bolstered by increasing investments in online and more and more consumers feeling the benefits of online shopping,’ said the report.

What this means for the LCV market is that demand continues to outstrip supply, with 10 | CarDealerMag.co.uk

VANS SOLD IN APRIL 2021 Model

Ford Ranger

Regs

Ford Transit Custom

4,581

Ford Transit

2,641

Mercedes-Benz Sprinter

2,099

Volkswagen Transporter

1,661

Ford Ranger

1,538

Vauxhall Vivaro

1,528

Citroen Berlingo

1,075

Vauxhall Combo

1,033

Peugeot Partner

977

Citroen Relay

965

Volkswagen Transporter Peugeot Partner

Vauxhall Vivaro

Ford Transit Custom

van manufacturers selling every vehicle they can build both for the UK market and in most overseas territories, where similar trends have developed.

In Britain, the SMMT is forecasting a record year overall for van sales, with projected volumes of almost 370,000 – a number that would actually be a lot higher were it not for an issue that looks set to affect the entire automotive industry in the second half of the year.

The global semiconductor crisis, caused by a surge in demand during the pandemic for consumer electronics and a recent fire at a key supplier in Japan, is impacting on the ability of all automotive manufacturers to produce vehicles equipped with certain components, according to The Procurement Partnership.

The scenario has led to manufacturers stalling production, with Ford closing the Transit factory in Turkey until June 13. That’s bad news for the UK’s best-seller, which will see disrupted supply.

Volkswagen, too, has suspended production of the Crafter and its sister model, the MAN TGE, while Stellantis – owner of Peugeot, Citroen, Vauxhall and Fiat – is advising customers of ‘longer than usual’ lead times on new van orders.

But it’s not necessarily bad news for dealers, as the shortage of new supply expected through July, August and September will mean stronger residual values and extra demand for used models.

Geoff Flood, Aston Barclay’s national light commercial vehicle manager, said: ‘Demand for every age, mileage, make and model of light commercial vehicle has been strong over the past two weeks. You can ignore the used value guides, as vehicles are making what dealers are prepared to pay to secure the van.

‘Some vans have gone under the hammer for two to three times reserve and this trend will continue until such time as we see factories reopening and used supplies improving.’

But for dealers with good stock levels already on the used forecourt, it’s time to make hay while the sun shines, with average used van values up by more than 10 per cent in April 2021.

Businesses are investing in new vehicles as they grow in confidence, driven by a more positive economic outlook stimulated by the vaccine rollout.

Mike Hawes

See the latest van registration figures on page 58 *Deloitte Consumer Trends Report 2021

CarDealerMag.co.uk | 11

STEP INTO THE FUTURE

of vehicle retailing

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Who’s the best among the manufacturers and suppliers?

Voting has opened in our annual survey – and readers can tell it exactly how it is thanks to the protection of anonymity, says James Baggott.

N

ow’s your chance to have your say on the best car manufacturers to represent and the best suppliers to do business with in the Car Dealer Power Awards 2021.

Voting has opened for this year’s awards, which will name the car makers dealers think are the best to represent and the top suppliers they work with.

Last year, Kia topped the poll of the best manufacturers to represent in the UK as voted for by Car Dealer readers.

MG, Mitsubishi and Vauxhall were at the bottom of the table.

Importantly, the Car Dealer Power survey also looks to find the best suppliers to do business with – from the top advertising portals to finance firms.

Car dealers can have their say on their partners in this survey, with the winners handed our coveted Car Dealer Power trophies.

Voting only takes a few minutes and can be carried out anonymously.

We assess manufacturers in 13 categories – from finance offers to brand awareness, marketing to bonus structure – and then rank the makers in our list.

Any car dealer can vote in the Car Dealer Power Awards, and independents can skip straight to naming their favourite suppliers.

As well as the best manufacturers to represent and the best suppliers to partner with, the Car Dealer Power Awards also name the Car of the Year, as voted for by readers of Car Dealer.

Last year, the Land Rover Defender won the top gong, with the Ford Puma and Porsche Taycan taking second and third place.

Voting for the Car Dealer Power Awards 2021 will close on August 31.

Click here to watch last year’s Car Dealer Power Awards

We’ll be looking for the best of the best in the following categories SUPPLIERS • Cleaning Product of the Year • Recruitment Agency of the Year • Trade-to-Trade Remarketer of the Year • Used Car Valuations Provider of the Year • Consumer Lead Generation Site of the Year • Dealer Management System of the Year • Website Provider for Independent Dealers • Website Provider for Franchised Dealers • Provenance Check Provider of the Year • Warranty Provider of the Year • Paint Protection Provider of the Year • Auction House of the Year • Trade Insurance Provider of the Year • Online Advertiser for New Cars • Online Advertiser for Used Cars • Finance Provider of the Year (Sub-Prime) • Finance Provider of the Year (Prime) • Video Provider of the Year • Extra Mile Award • Product Innovation of the Year MANUFACTURERS • Manufacturer of the Year • Car of the Year

Click here now to vote for your favourites CarDealerMag.co.uk | 13

INVESTIGATION

COULD CRISIS IN NEW CAR MARKET SUPERCHARGE USED CAR PRICES? James Baggott chats to industry experts about how the global shortage of semiconductors may be bad news for some but it could be welcomed by others.

S

2% emiconductor chip shortages may be bad news for the new 0.3% car market but they are set to supercharge the used car 1.5% market and push prices up even further.

1% A Car Dealer investigation has found that while the 0.4% 0.5% impact that the lack of the microchips is having on 0.3% 0.4% 0.2% 0.3% 0% new car supply is severe, it is set to boil an already-bubbling 0% used car industry.

-0.5% What Car? says it has already heard from buyers who can’t get the -1% new car they want turning their attention to used cars instead.

A combination of increased used car demand and lack of supply -1.5% -1.4% -1.4% -1.5% – mostly due to dampened new car sales reducing the number of -2% part-exchanges – has already seen used prices hit unprecedented -2.1% -2.5% heights in 2021.

-3% Now experts from the valuation, auction and used car advertising -3% worlds all predict the semiconductor issue could push used car prices up even higher.

Jim Holder, editorial director of What Car? said: ‘We are hearing Source: Solera | cap hpi about the nearly new market hotting up.

‘Our weekly polling of car buyers tells us that demand is strong, and that buyers who can’t get the car they want are willing to either buy nearly new or swap to models or brands with availability at increasingly high rates.’

Derren Martin, head of valuations for Cap HPI, said showrooms were likely to see used car prices rise by as much as five per cent.

‘As always, when supply is constrained and demand strong, prices increase.

‘With new car availability an issue over the coming weeks and months, consumers may well switch to used cars, and there is lower supply than normal, due to the pandemic’s impact last year.

‘With demand likely to outstrip supply, values are likely to stay strong over the summer months.

‘April and May are likely to see total average rises of around five per cent.’

Since the April 12 reopening of showrooms, used car demand has been very high and dealers are already struggling to replenish stock at sensible prices.

Martin said that lower-than-normal new car registrations in March and April had impacted on part-exchanges and fewer fleet returns had worked their way into auction halls.

Rupert Pontin, director of insights at Cazana, which is another used car valuations firm, Derren Martin said that new car supply issues caused by the semiconductor constraints would really set in during the second half of the year.

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Car valuations – percentage movements in the past 12 months

With new car availability an issue over the coming weeks and months, consumers may well switch to used cars.

14 | CarDealerMag.co.uk

He said Ford and Stellantis were the latest car makers predicting supply issues because of the microchip shortage.

Most manufacturers have already reported problems getting hold of the parts.

‘This will impact new car sales volumes during the year at a time when the industry does not need any more bad news,’ he told Car Dealer.

‘New car sales look set to be quite badly affected on a global basis from H2 and the UK will take its fair share of the pain.’

But he is predicting a filip for the used car market as demand for late-plate used cars will be strong.

‘As shortages hit, retail pricing will probably increase,’ he added.

‘Historically, when late-plate cars go up in value, the market drags all used car pricing up at the same time, and this is a real possibility.’

Auction firm BCA’s chief operating officer Stuart Pearson agreed.

‘If new car supply is restricted, then the most likely scenario is rising demand in the nearly-new sector with more competition,’ he said.

‘This ripple effect can be felt down the value chain as buyers chase stock that may be typically older than they would usually buy, pushing prices up.’

Raise prices

Philip Nothard, insight and strategy director for Cox Automotive, which is the firm behind auction house Manheim, said dealers shouldn’t be afraid to raise prices to counter the lack of supply.

He said that while the pent-up demand would ease in the coming weeks, dealers may start to face competition from fleet and rental companies snapping up nearly-new models themselves.

‘This could expand the demand issues we’ve already seen and make purchasing even more competitive, driving used prices higher for dealers,’ he warned.

‘I think that used car prices will continue to remain strong throughout the rest of the year and into 2022.’

Auto Trader says the imbalance of supply and demand will undoubtedly push up prices further.

It has recorded 13 consecutive months of ‘steep’ price growth in the used market and says trade values are unlikely to match the pace of change happening to forecourt pricing.

Richard Walker, Auto Trader’s data and insights director, told Car Dealer: ‘Used car prices are heavily influenced by the supply-and-demand dynamics in the market, and as a result of the huge increase in consumer demand boosted by the reopening of physical showrooms last month, the rate of growth has accelerated even further.

‘No doubt the chip shortage will impact levels of new car supply in the market, and this will create higher demand for used cars of those most heavily impacted.

‘There’s no question that this increasing imbalance of supply and demand will have a profound influence on used prices.’

Fellow advertising portal eBay Motors Group is hearing that dealers are facing pressure getting hold of used car stock.

Its latest figures show they are selling used cars faster than they have done for months, with the average time taken to turn stock down seven per cent in April versus March.

In Scotland, where dealers opened sooner than in England, the average days to sell for used cars in April was just 33 days. In England, dealers were selling cars on average in 42 days – and that’s accelerating.

Head of sales for eBay Motors Group Marc Robinson said: ‘The semiconductor shortage is adding to the pressure of generating fresh used car stock in the wholesale marketplace.

‘Shortages of new models has seen some corporates and leasing companies pause their defleeting as they wait for replacement vehicles.

‘On the retail side, the shortage is also seeing fewer part-exchanges enter the used sector.’

The advertising site has seen prices steadily rise on dealer forecourts – up 4.3 per cent in April to £12,753.

Robinson added: ‘Until the supply of new car stock improves, which will take some time with factories reducing hours and even temporarily suspending production, we expect this dynamic to continue.’

Auctions are increasingly busy

Auctions on fire

IN THE wholesale market, auction firms are already predicting that the semiconductor shortages for new cars will push used prices up.

James Bush, sales director at Motorway, told Car Dealer: ‘The shortage of conductor chips is a huge problem for the new car industry and will have significant knock-on effects for the used car industry, too.

‘With fewer new cars produced, that will mean fewer new car sales and therefore fewer part-exchanges, particularly at the more expensive end. We can expect the used car market to continue booming as demand increases.’

Martin Potter, Aston Barclay’s managing director, said that the market was already short on cars and this would only restrict that even further.

‘The longer the semiconductor problem goes on, the more pressure there will be on used supply and prices will continue to rise,’ he said.

‘Even if used car demand falls slightly as consumers invest in going on holiday, then we are still going to see demand exceed supply.’

Potter added: ‘Our leasing company clients tell us that they have very healthy order banks in with the manufacturers, so when supply problems are relaxed there should be plenty of used cars coming into the market, but currently we do not know when that will happen.

‘It could be next year before we see the market settle down to its latest “new normal”.’

CarDealerMag.co.uk | 15

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It’s vital you grab this chance to have your say on good and bad guys

T

I will certainly be looking forward to seeing who comes out on top in the various categories.

he differing relationships manufacturers have with their dealer partners truly shocks me. I chat to a lot of dealers in this job and some of the stories they tell me are nothing short of disgusting.

Let’s look at the facts. Car manufacturers operate a franchise model, no different to McDonald’s or KFC. Entrepreneurs raise funding and invest it in a brand they feel they can do business with, sink cash into a property, into dressing the dealership, into marketing, back-office systems, coffee machines, the list goes on. But whereas the Golden Arches or the Colonel can promise hefty returns for businessmen’s cash if they run their operations well, what can a decent car manufacturer promise? A couple of per cent return?

Hardly seems worth it, especially if it’s not carried out in the spirit of partnership.

Now don’t get me wrong, there are a lot of good manufacturers out there working very hard with their dealers. The Covid crisis has shown us that solid partnerships are forged in times of crisis and the attitudes of some manufacturers are to be applauded.

And there’s no denying that there’s very good money to be made in car franchises when done right. But with slim margins, you’d think the car makers would be a little, well, a little more forgiving sometimes.

It’s all very well demanding new signs and the colour of the tiles when you’re offering 15-20 per cent return on cash. There’s a bit more swilling about the business then to invest in pointless rebranding exercises, like logo changes for the sake of logo changes.

But despite that, some manufacturers still seem to treat their dealers poorly. Let’s take Mitsubishi, for example. The brand’s exit from the UK can only be described as disastrous, and all the way along dealers have been moaning about a lack of communication.

Remember, some of these dealers have been with the brand for decades – loyally supporting it through thick and thin. Then it decides to call it a day, runs out the sale of new cars and sells off its aftersales business to the highest bidder.

Subaru importer IM Group has now said it’s in advanced talks to snap up the latter, but I can’t help but feel incredibly sorry for a once loyal and engaged dealer network that feels as if it’s been cast aside.

Mitsubishi will say it’s working with its partners to manage the end of its time in the UK, but we know lots of dealers have already jumped ship. Think of the money they’ve invested in that brand over the years, only for the support to be pulled and the sales ended. I’d be pretty cheesed off if I’d had a Mitsubishi franchise, that’s for sure.

The saga doesn’t feel unusual. Many of the other brands seem to enjoy pushing their dealers around, often verging on bullying when they want something.

That’s why our Car Dealer Power survey is so important. It gives dealers the chance to rate their manufacturers on a huge number of key things – from marketing to bonuses, to those all-important manufacturer requirements.

The results are always interesting and show the good from the bad quite clearly. Last year, Mitsubishi languished near the bottom of the pile and I would be surprised if it managed to change that this year. But let’s face it – it’s probably not too worried, knowing that the contracts will soon be with another party.

The Car Dealer Power survey – which is open now – also rates the best suppliers to do business with. Over the past year, many have dug deep to show their support to an industry that has been battered by lockdowns and showroom closures. As we come out of the hardship, those gestures and support shouldn’t be forgotten, and I will certainly be looking forward to seeing who comes out on top in the various categories.

Business is all about partnerships. We know things don’t always work out and sometimes difficult decisions need to be made, but what’s more important is making sure those tough times are managed correctly. That’s why it’s vital to have your say on the good guys, and the bad, in this year’s survey. You can fill it in now at CarDealerPower.com

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

Bring out your modern classics! (I want them for my retirement pot)

I

’ve made no secret in this column of my love for cars of the 1990s, which in my view represent the high watermark of the car industry.

Dynamically great, well sorted and not overburdened with tech, they’re probably the best that cars ever were – certainly through the eyes of an overweight Brummie who once had a Lada franchise so knows how dire a car can be…

I’m also delighted to see that in recent times such cars have had a bit of a renaissance in the trade. Just last week, a mate of mine had a 1988 Ford Escort and a 1994 Vauxhall Astra in stock. A few years ago, they’d have been worthless old bangers, but he managed to sell the Astra after a bit of patience for £2,295 and the Escort went almost instantly for an eyewatering five grand, which I know is a hell of a lot more than he paid for it.

Nostalgia, you see, is evolutionary. I took one on the chin myself a couple of months back when a Peugeot 205 GTi that I sold in 2010 for what I thought was a pretty decent £1,600 at the time was resold through one of the classic auction houses for the princely sum of £15,000. The owner had done nothing to it other than keep it locked away in a dry garage, putting less than 2,000 miles on the clock in 11 years. But that’s the way to do it and I don’t begrudge him his payday. Well, maybe a little bit.

For those who fancy a slice of the action, though, the good news is that very soon there’ll be a glut of modern classics from the 1990s and early 2000s on the market and the reason is the London Ultra Low Emission Zone. The shift we’re seeing towards electric cars (and the reason they’re flying out of showrooms) is led by a need for anyone living inside the North and South Circular to have a super-low-emission car, which from October means anything Euro 4 or better in terms of its emissions class.

To the layman, that’s not too scary. Most petrol engines after 2003 are Euro 4 already, and let’s face it, an 04-plate Astra is hardly a paragon of efficiency. But this is just the tip of the iceberg as the capital moves towards an ever more ‘green’ and efficient future.

Also, there are thousands of motorists in London who will need to change their cars – many of whom don’t want to. It’s a London microcosm and it’s sadly going to sound the death knell for a load of cars we know and love, because unlike in the provinces the motorists of the outer reaches of inner London tend not to replace their cars very often, because the cars don’t get used for commuting – their purpose is generally for shopping, days out and visiting family, so they don’t get worn out.

When I was growing up, in a working-class Brummie family, I was told to ‘make do and mend’ so that’s what I did. The idea of throwing away something that was perfectly useful never really crossed my mind, and in the wealthier suburbs of London, where cars are often bought outright rather than on a PCP or hire purchase, the very same principle applies.

The traditionally wealthy have a tendency to drive older cars because they bought them new from the dealer and they haven’t worn them out yet. See also Barbour jackets, Hunter wellies and ancient tapestries. There’s a reason the rich are rich, and it has nothing to do with mortgage interest rates or the best PCP deals on the new car market. Old money has a different approach, and there’s a lot of it in London.

Indeed, it’s one of the only things I’ve ever liked about the place. I confess straight away to not being London’s biggest fan. It’s dirty, overcrowded and a lot of its residents have an attitude problem, especially when I open my mouth and the noise that comes out is akin to that of Derek Robinson – he of the famous British Leyland strikes. Yes, I’m a born and bred Brummie and proud of it, but the Londoners visibly wince when I open my mouth. Unless, of course, I’m offering them money for their cars.

And that is my latest business model. Even without HS2, I can be in the big smoke in less than two hours and still get home in time for tea, which is how I like it because tea where I live is something you have in the evening with the family, whereas in that there London it’s

I open my mouth and the noise that comes out is akin to that of Derek Robinson – he of the famous British Leyland strikes.

something you do in Claridge’s with your little finger sticking out. (Why DO posh people do that?) Right now, I’m wandering the streets of the upmarket suburbs of north, east and west London armed with a notepad and a piece of paper, and I’m going up against the scrap dealers who are – unsurprisingly – extremely savvy as to this up-and-coming supply of cars that are destined to be weighed in.

My approach is a little different. I have a typed-out note explaining that I’m a classic car enthusiast from the Midlands (not a lie, but maybe a little bit of a white one) and that if they’d like to see their car go to a good home they should ring me instead of the scrappy.

Meanwhile, my mate Diesel Dave (soon to be Electric Dave) is going around the same suburbs in his just-about-compliant Iveco beavertail, picking up cars that people don’t really want to sell because they’re not broken but are soon to be outlawed. Back here in the Midlands, I’ve just taken out a lease on an old factory warehouse in which I reckon I can store 50 cars, and that’s my retirement fund. Because low-mileage, rust-free London cars are the best out there for still going strong well into their third decade, largely due to rarely being used on salty motorways. Or, indeed, at all.

Already in my warehouse are two Mercedes W124s – a saloon and an estate – a sporty 16v Clio, a Rover 827 Vitesse, a Lancia Thema (when did you last see one of those?) plus three old P38A Range Rovers. And next week, Dave is bringing me a John Prescott’s worth of Jaguars as well as a Rover Metro GTi. All of these fine specimens will be squirrelled away, awaiting the burst of nostalgia that has sent values of their predecessors skyrocketing. And when it does, I’ll be retiring to count my gold bullions on the Bahamas. Or something.

So yes, my approach to the London ULEZ is a pragmatic one, in which I recognise the future potential of modern classic cars and will have a lot more fun selling them to enthusiasts than I tend to get selling used Hyundais to people who see cars as white goods.

But even though I can almost reach out and touch my holiday villa at the end of this latest business scheme, I still think the zone is a daft idea.

Yes, low emissions are a good thing. But so is recycling and keeping an old car going. But then, I suspect most politicians have never even lifted a bonnet…

So yes, my approach to the London ULEZ is a pragmatic one.

CarDealerMag.co.uk | 19

Are you losing one in four customers?

At Startline, we’re able to offer motor finance to around one in four potential car buyers who have been turned down by prime lenders.

Some applicants are excellent credit risks but don’t quite fit normal lending conventions. The fast-moving pace of recent events mean that there are more of these individuals than ever before - and our belief is that they deserve products, service standards and terms comparable to any leading motor finance provider.

We have a flexible approach to lending that uses a combination of the best technology and human skills to meet their needs. At times when your prime lender steps back, we step in.

Shouldn’t you consider making Startline part of your lending panel?

enquiries@startlinemotorfinance.com www.startlinemotorfinance.com 20 | CarDealerMag.co.uk

Sellers need to beware of the pitfalls that can come with EVs

W

This means that you own the vehicle but not the battery.

Imagine buying a car and then leasing the engine!

hen my dad started his motor business in the early 1980s, he did so with the help of a motor trader called Gordon (not his real name, but all men in the 1980s were called Gordon, Derek or Peter, so there isn’t much choice). Gordon was a proper entrepreneur. I once went to an auction with him and St John Ambulance was disposing of some of its old vehicles. ‘What do you see there, boy?’ he asked me. ‘Old ambulances,’ I replied. ‘Burger vans,’ he said, and proceeded to buy them all.

Gordon owned pubs, restaurants, nursing homes, a small industrial estate – anything he thought he could make money on. There are not many Gordons left now, especially those who start trading in cars from a low financial base. Wholesale is limited to auctions or private sellers, and with webuyanycar giving vendors a strong sense of the value of their car, it is not for the faint-hearted.

The few people like Gordon who are left will give a price on anything without much consideration; they have a sixth sense about value developed over countless transactions. It is also supported with a large network of contacts to whom these cars are sold. However, there is one car market that terrifies motor traders: electric vehicles.

I’m not talking about a Prius or plug-in hybrid; I am talking pure EVs such as Leaf or Zoe. I was recently involved with a Renault Zoe that had a leased battery.

For those that do not know, Renault and Nissan will sell you a car but lease you a battery. This means that you own the vehicle but not the battery. Imagine buying a car and then leasing the engine! Title could not pass until a new lease had been arranged, and as there was only a 90-day trade grace period, as soon as that expired Renault Financial Services started sending demands to the previous owner.

There is then the range expectations that buyers have of older EVs. Motor manufacturers have been criticised for misleading buyers over fuel consumption, resulting in changes to vehicle testing. This does not stop with EVs. In my experience, an EV will achieve 80 per cent (at best) of the quoted vehicle range. So older Zoe, Smart and Leaf, with their declining battery performance, can expect range in the tens of miles, thus really limiting their desirability.

Finally, there is the reliability of early EVs and the impact of the legal rights that consumers have. It is a braver dealer than I am who is prepared to sell an EV at a distance, only for the buyer to realise the range performance is not as expected within the first 14 days and return it. Similarly, with warranty coverage of electrical items, many independent workshops will not have the skill capability to fix broken EVs and therefore dealers are more comfortable offering combustion alternatives where the issues are more known.

As performance of EVs improve then so will reliability and customer awareness of their quirks and foibles but for now, caveat venditor…

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

DASHBOARD BENTLEY

Flying Spur has extra tech and refinement

CAR NEWS ROUND-UP Manufacturers have been busy refining existing models and producing new ones. We look at 10 of the results...

BENTLEY has updated its Flying Spur with a range of enhancements aimed at making it as refined and comfortable as possible.

A new onboard ioniser pushes out negatively charged particles from the air conditioning system which, according to Bentley, enhances ‘cabin air purity and customer wellness’.

The cabin now features an open-pore veneer as an option as well. It’s finished in an ultra-thin matt lacquer that helps to protect the wood.

Sound-proofing material ensures the interior is as quiet as possible when on the move, too.

SUBARU

KIA

New Outback will start at £33,995

EV6 crossover to cost from £40,895

THE new Subaru Outback will cost from £33,995 when it goes on sale on May 27.

The Japanese firm says this is the ‘safest Outback ever built’ thanks to ‘world-class, advanced safety technologies’.

Standard across the range is Subaru’s EyeSight technology, which uses advanced cameras to provide collision avoidance, adaptive cruise control, lane departure warning and pre-collision braking. New is a driver monitoring system plus automatic braking while reversing.

KIA has confirmed that its new electric EV6 will cost from £40,895 when it goes on sale in the UK later this year.

The striking crossover is the first car to be built on Kia’s new electric vehicle platform.

Every UK model gets the larger 77.4kWh battery pack said to be capable of up to 316 miles between charges, while ultra-fast charging capabilities can top the battery up from 10-80 per cent in less than 20 minutes, says Kia. The entry-level model has a 226bhp electric motor.

22 | CarDealerMag.co.uk

VOLKSWAGEN

Polo takes styling cues from the Golf THE VW Polo has been given an update, bringing revised styling and improved technology to one of the most popular superminis on the market.

It's received styling cues from the new Golf such as LED headlights as standard and a light bar that runs between the lights and VW badge.

The front bumper has also been given a sharper look, while matrix LED headlights are available on higher trims for the first time.

At the rear are LED lights for some trim levels.

NISSAN

Third-generation Qashqai on sale

THE new Nissan Qashqai has gone on sale in the UK with prices starting from £23,535.

The crossover has been a huge sales hit for the Japanese brand, and 2021 sees the new third generation.

Deliveries are scheduled to begin in the summer, with those keen to be the first in the new car still able to order the highly specified Premiere Edition, This model comes with a 1.3-litre petrol engine and starts at £29,275 with a manual gearbox or £31,795 for the automatic.

HYUNDAI

What a performance! Turbocharged Kona N boasts beefed-up gearbox HYUNDAI has revealed the Kona N – the first SUV to join the firm’s range of performance models.

It follows a similar ethos to the i30 N hot hatchback by bringing aggressive styling and motorsport-inspired technology that should deliver a thrilling driving experience.

Under the bonnet sits a 2.0-litre turbocharged petrol engine with an eightspeed automatic gearbox beefed up for better durability and with unique ratios to deliver sharper acceleration.

The powertrain makes 276bhp and contributes to a top speed of 149mph and a 0-60mph time of 5.5 seconds.

FERRARI

812 Competizione and 812 Competizione A unveiled FERRARI has revealed a pair of V12-powered limited-edition special series cars in the form of the 812 Competizione and 812 Competizione A. Both are based on the existing 812 Superfast but bring a range of enhancements to ensure even more performance and excitement.

They use the Superfast's 6.5-litre V12 engine but maximum revs now stand at 9,500rpm – an extra 500 over the standard car. Other modifications mean they'll crack 0-60mph in under 2.85 seconds, going on to 211mph.

The 812 Competizione A

GENESIS

CITROEN

Into Europe – five years after launch

GENESIS is coming to Europe, with the firm set to introduce a range of new vehicles this summer.

The G80 saloon and GV80 SUV will be the first to hit the road, followed by the G70 and GV70. Genesis also plans to bring in three EVs within its first year. Despite being in existence for five years, this will be the first time that Hyundai-owned Genesis has had a presence in Europe. It launched in its native South Korea before arriving in America, Canada, Russia, the Middle East and Australia.

SKODA

Sense trim brought in for C4 line-up

Fourth-gen Fabia given more space

CITROEN has introduced a new entry-level trim to its C4 lineup, bringing the starting price down by £2,000 to £21,010.

Called Sense, it has an impressive level of specification given its entry status to the range. For example, these models get 18-inch alloy wheels as well as LED headlights, daytime running lights and fog lights.

Inside, there’s a 5.5-inch digital instrument cluster and 10-inch infotainment touchscreen. The firm’s Safety Pack is standard as well.

SKODA’S fourth-generation Fabia has been revealed, bringing a range of enhancements that help to make it ‘the most spacious car within its segment’ according to the Czech firm.

It’s now underpinned by Volkswagen Group’s MQB-A0 platform, which sees the Fabia swell by 11cm to 4,108mm in length. This means it can offer 50 litres more boot space than before – rising to 380 – while a longer wheelbase means there’s more room for passengers, too.

CarDealerMag.co.uk | 23

DASHBOARD MULTI-FRANCHISE

NEWS DIGEST

HERE ARE TASTERS OF STORIES YOU MAY HAVE MISSED

CLICK ON THE PICTURES FOR THE FULL STORY

STELLANTIS

Contracts bombshell delivered to dealers

H.R. Owen £30m site plan approved LUXURY dealer group H.R. Owen has been given the go-ahead for a £30m multi-franchise site in Hatfield that will also incorporate its HQ. The new landscaped 110,000 sq ft site at Hatfield Business Park will comprise five showrooms, workshops, offices and events space.

Welwyn Hatfield Borough Council approved the plans drawn up by architects Louis de Soissons, who said it would ‘create a market-leading sales and servicing destination’.

STELLANTIS has announced it will be terminating contracts with all of its dealers across Europe with two years’ notice.

Car Dealer has heard that retailers for the group were told in a conference with Stellantis country manager UK Alison Jones on May 19 that they would find out in July if they would be keeping their franchises.

In a statement released online, it explained that its ‘vision is to promote a sustainable distribution model with an efficient, optimised and effective Stellantis distribution network’.

It has said this is due to upcoming changes to EU block exemption, which will lead to changes in distribution contracts.

However, it added that ‘in this context, sales and service distribution agreements of all Stellantis brands will be terminated with two year’s [sic] notice.’

UNTIMELY DEATH

MARSHALL

MG sales chief dies of cancer at 48 MG Motor UK’s head of sales and marketing Daniel Gregorious has died of pancreatic cancer.

He was married with three children and was just 48 years old. Friend and ex-colleague Craig Cheetham told Car Dealer: ‘It’s truly tragic. He was a lovely guy. I know it’s customary to say as much in these circumstances but he genuinely was. He was also a good friend of mine.’

In a statement, MG told how important Gregorious had been to the company, adding that he was ‘a true gentleman’.

24 | CarDealerMag.co.uk

‘We’ll repay furlough and grants for 2021’

MARSHALL Motor Group has vowed to repay furlough cash and retail grants for 2021 – the first car dealer in the sector to make the move.

It said it was continuing to ‘outperform the market’, and because of this strong performance, boss Daksh Gupta has pledged to repay £2.6m of furlough cash that’s been received so far in 2021 and has also committed to repaying all £1.4m of the retail rate relief that it was given.

ACTION

A full recovery for the sector is still some way off but the industry can begin to rebuild.

Mike Hawes, SMMT chief executive p56

Fifteen dealers are struck off by FCA

FIFTEEN dealerships had their Financial Conduct Authority permissions revoked in the first quarter of 2021.

It means they can no longer offer consumer credit, so can’t sell vehicles on finance any more, effectively limiting them to just cash sales.

In addition, if they had a stocking facility with a finance house, that will also have been withdrawn.

Click on the picture for the list

‘The Volvo XC40 Recharge offers the kind of useable range that buyers are looking for.’

Forecourt: p32

NETWORK

MITSUBISHI

Drive signs up to MG IM Group poised to with franchise trio take over aftersales

DRIVE Motor Retail has joined the MG family with franchises in Leicester, Bristol and Darlington.

The showrooms add to the group’s nationwide network of 15 Vauxhall and Citroen dealerships.

Joint MD Rob Keenan said: ‘We are incredibly excited for this new chapter of Drive Motor Retail.’ It comes on the heels of MG reporting a sales increase of 50.8 per cent in 2021, with 8,307 cars registered, making it the fastest-growing of the UK’s top 30 car manufacturers.

MITSUBISHI Motors in the UK’s aftersales business is set to be taken over by International Motors, the importer of Subaru and Isuzu.

The two companies are in advanced talks it has been revealed and are currently in the final stages of a due diligence process.

Andrew Edmiston, managing director of IM Group, said: ‘We are confident that we will be able to offer the high quality of service Mitsubishi customers are accustomed to.’

CLOSURE

Seat site shuts after 27 years with brand

A SEAT dealership has closed after 27 years with the franchise.

Colchester-based Miller and Middleton sent a letter to customers telling them of its closure, according to the Maldon Standard. A Seat UK spokeswoman told Car Dealer: ‘Miller and Middleton had been a Seat franchise for an outstanding 27 years, but the owner Ian Middleton took the decision to close the business at the end of 2020.’

Picture via Google Street View

PENDRAGON

Shareholder revolt fails to dislodge boss

PENDRAGON boss Bill Berman and his fellow directors have kept their jobs after a threatened shareholder revolution failed to dislodge them from their posts.

There had also been anger over the proposed pay deal at the dealership chain, which owns Evans Halshaw and Stratstone. But all the resolutions were passed at the annual meeting, including the re-election and reappointment of the directors, as well as approving their pay recommendations

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

MARKET ANALYSIS

There’s a reason the rich are rich, and it has nothing to do with mortgage interest rates or the best PCP deals on the new car market.

Big Mike p18

UK could feature in Nio’s Europe plans

CHINESE electric vehicle manufacturer Nio will be arriving in Europe later this year – and a UK launch could be on the cards.

The firm’s launch in Europe will start in Norway, where incentives to buy zero-emission vehicles are high and EV uptake is some of the best in the world. The company is also pondering a UK launch, and has told Car Dealer that it’s analysing the market before deciding to build right-hand-drive models.

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 | 25

DASHBOARD AWARDS

NEWS DIGEST

HERE ARE TASTERS OF STORIES YOU MAY HAVE MISSED

CLICK ON THE PICTURES FOR THE FULL STORY Global honour for Rolls-Royce site A BERKSHIRE Rolls-Royce dealership has been named one of the world’s best.

The Sunningdale showroom, which is part of the Sytner Group, was awarded the trophy for Global Bespoke Dealer of the Year by the manufacturer during a series of virtual events.

It was also named Regional Dealer of the Year for Rolls-Royce Financial Services and Regional Dealer of the Year for Provenance, as well as Regional Dealer of the Year Runner-Up for Sales.

FIRST

TRIUMPH

Six of the best! Steven Eagell Group scoops clutch of trophies at Toyota Best Retailer In Town Awards STEVEN Eagell is celebrating scooping six trophies at the 2020 Toyota BRIT Awards.

The most prestigious Best Retailer In Town titles are Best Toyota Group, Best Customer Drive Area (CDA) and Toyota Retailer of the Year – and the UK’s largest Toyota retailer group came out on top in all three.

The Aylesbury, Bedford, Luton & Milton Keynes dealerships took Best CDA, while Steven Eagell Milton Keynes, pictured, was named Toyota Retailer of the Year. Steven Eagell also picked up wins for aftersales (Aylesbury), used vehicles (Milton Keynes) and Toyota financial services (Romford)

LEAK

Porsche Centre gets turbo points PORSCHE Centre Preston’s boss has spoken of his pride at the showroom becoming the first of its kind in the UK to have new ultra-high-speed charging points.

The two Porsche CBX 150kW Turbo Chargers each take just five minutes to give a Taycan enough juice to travel 62 miles.

Centre principal Tom Fox said: ‘We are proud that Preston was chosen for the first installation in the UK. Our new ultra-highspeed charging points offer a glimpse into the future of electric motoring here in the north-west.’

26 | CarDealerMag.co.uk

VW looks at bringing in agency model

A LEAKED letter to dealers has revealed that the VW Group is planning an agency sales model.

It’ll affect dealers across the group’s brands, and boss Alex Smith’s letter says it is planning to bring in the model for EVs. This is thought to be a precursor to a wider roll-out of the model on its other vehicles. It sees dealers paid a handling fee for dealing with new car sales, with the cars sold via the manufacturer’s website.

450

Rodgers brings MG back to Plymouth

Feature p48

INDEPENDENT dealership Rodgers of Plymouth has added MG to its portfolio – bringing it back to the city after a number of years.

The marque joins SsangYong and Mitsubishi at its Christian Mill site.

Rodgers of Plymouth was founded more than 90 years ago and used to be an MG Rover dealership for more than 20 years. SMC Group and Specialist Vehicles previously had the MG franchise.

The claimed range in miles of the solarpowered EV Lightyear One.

RETURN

Pictured is brand director Adam Hext

Cool stuff: We’ve found a selection of great things to buy with your lockdown savings.

‘Quote.’

Feature: p47

Feature: pXX

The few people like Gordon who are left will give a price on anything without much consideration.

James Litton p21

CENTRES

JCT600 launches Approved brand for used cars MULTI-FRANCHISE retailer JCT600 has launched its own brand for used cars.

It comes as the family-owned Bradford-based firm headed by John Tordoff, pictured, reopened its 54 dealerships across Derbyshire, Lincolnshire Yorkshire and the north-east of England following the easing of lockdown restrictions. JCT600 Approved combines its used car sales across the group, with dedicated centres in Bradford, Leeds, Boston, Doncaster, Grimsby and Rawdon.

Sell faster, buy smarter.

More choice.

Better insight.

Greater margin.

Take advantage of the UK’s busiest marketplace.

With 600 auctions ending daily and over 11,000 fresh vehicles added every month, it’s no surprise we have the most active buyer base in the UK.

Take us for a test drive.

Curious about what you see?

Then why not try Dealer Auction free for 30 days?

Visit us at www.dealerauction.co.uk 340302

CarDealerMag.co.uk | 27

ADVERTISING FEATURE

Game-changing app will revolutionise the way used car dealers buy and sell I

t has already been hailed as a game-changer by traders who have had the chance to test-drive it, but the new app by Trade To Trade Underwriting is set to revolutionise the way used car dealers buy and sell trade vehicles.

The new app, launching imminently, offers a sophisticated e-commerce platform that builds on Trade To Trade’s original app launched last year – a platform that has become the UK’s number one marketplace to trade used cars with a community. There are currently around 1,700 members who collectively list more than 3,000 vehicles each month.

But fuelled by feedback from app users, the team has put a great deal of investment and commitment into refining the existing platform to create a safer, slicker and simpler app that works on both desktop and mobile.

Performance inspired, the new Trade To Trade app has been engineered to combine efficiency and profitability with networking and safety. Key features have ingenuity at the forefront and include details such as push notifications, in-app calling and keyword search so app users never miss a car again.

While many existing app users are looking forward to the promise of a desktop version, this will be integrated with a mobile phone app to allow traders to buy and sell on the go – anytime, anywhere.

But with core values of honesty, integrity and respect, the main focus of the new app is safety and user confidence. All app users are stringently assessed as legitimate used car dealers before they can become a verified trader and gain the coveted ‘blue tick’ authentication. This means you can have full confidence in the people you’re trading with which, as Ahmed Asad of Brook Williams Prestige, says, ‘helps to worm out the snakes and keep the wheels moving’.

There is also a new five-star review system that further develops the level of trust and respect among traders. You can check the buyer or seller’s rating and how many deals they have completed, as well as any feedback they received from previous sales.

Before they launched Trade To Trade, business partners James Vaughan and Ben Mitchell were car dealers who struggled to sell on the part-exchanges that came to the forecourt. They came up with the idea of creating a small network of like-minded motor dealers who also had the same difficulty buying and selling outside their local area.

What initially started life as a Facebook group soon outgrew its capabilities. Yes, members could post cars to the group in their droves. But there was no search option, no trader verification and the team couldn’t fully monitor the huge volumes of daily posts and comments. The deals were also completed under ‘gentleman’s agreements’ with no guarantee a sale would be legitimate.

That’s when they decided to enhance the experience for the community they’d organically created 28 | CarDealerMag.co.uk

Trade To Trade’s features at a glance • UK’s No.1 marketplace to trade used vehicles • Find trade vehicles from a verified dealer • Search for the exact vehicle you require • Get your vehicle on sale in minutes • Find cars for sale at a trusted dealer. Read reviews when buying from a dealer • Get peace of mind when buying from verified dealers • Unique search options to help find the correct vehicle

by developing an app solely for verified traders to use. ‘In 2020 when we launched the first app, we were astounded by its success in such a short space of time. The network soon grew to over 1,000 members, with over 50 cars being posted daily. We quickly realised that the app was something the trader community needed. This is what they’d been waiting for to enable every trader to focus on selling the right stock to the right client,’ says James.

Since then, digital sales of used cars through the app have accelerated, as has the credibility of Trade To Trade. In 2020, it won the Trade-to-Trade Remarketer of the Year category at our Car Dealer Power awards and Outstanding Achievement title at the 2020 Car Dealer Used Car Awards.

The app obliterated the challenges faced by used car dealers, such as extortionate auction fees, unreliable sellers and time-wasters. Trade To Trade app users can buy and sell as many cars as they like for a low monthly fee. But all savvy car dealers want to stay ahead of the game and Trade To Trade is no exception.

The new app has been designed with users in mind. For buyers, they can replenish their forecourt easily and efficiently by searching for the newest listed models or popular makes from the extensive database. For sellers, it is now easier than ever to upload a vehicle and make a quick sale with Auto Listing pull-through of DVLA data. This is combined with a cohesive five ‘Key Prep Questions’ that let buyers know what, if anything, comes with the car or any prep work that is needed. There is also the added bonus of a ‘Buy It Now’ option to speed up sales.

But for the ultimate, unrivalled insight into each vehicle, app users on the premium subscription can benefit from integrated MotorCheck and Auto Trader retail valuation, which give intuitive and relevant information that buyers are looking for before they agree on the sale. Instantly appraise how well a car will sell on the forecourt and find out the right pricing to secure a swift and profitable sale.

And what about the Facebook group? That’s still going strong, with more than 15,000 members across three trader-only groups. The groups still hold the community aspect at heart, with lively discussions and topics filled with banter. But most members would agree #TheOnlyWayIsApp. Car Quay boss Jamie Caple said: ‘Trade To Trade Underwriting has not just dramatically changed the way we operate as a business but has increased our efficiency and our profitability no end. In addition to this, we have been introduced to a wide-ranging community of like-minded traders who have benefited the growth and success of our company.

‘With a genuinely game-changing app, passionate customer base and fantastic leadership, Trade To Trade Underwriting is one of the best things to happen to this industry in a long time, and long may its success continue.’

Trade To Trade Underwriting has not just dramatically changed the way we operate as a business but has increased our efficiency and our profitability no end.

Car Quay boss Jamie Caple

To discover how our new app can help your dealership, go to trade-2-trade.co.uk and register today

CarDealerMag.co.uk | 29

FORECOURT

LOTUS EXIGE SPORT 390 FINAL EDITION

Power

A 3.5-litre V6 gives the Exioge 397bhp and punches the car to 60mph in 3.7 seconds.

Lotus’s hugely popular sports car is bowing out with the Final Edition. Jack Evans discovers if it truly is the ultimate version.

THE KNOWLEDGE Lotus Exige Sport Final Edition Price: £82,675 Engine: 3.5-litre supercharged V6 Power: 397bhp Torque: 420Nm Max speed: 172mph O-60mph: 3.7 seconds MPG (combined): 27.7 Emissions: 230g/km CO2

WHAT IS IT? Lotus has a fine tradition of creating special-edition models but this one – the Exige Sport 390 Final Edition – really is the last of the line.

WHAT’S NEW? First released in 2000, the Exige became synonymous with the blossoming track dayfocused scene. This Final Edition car shows what the Exige really can do, with more power, more aggressive aerodynamics and a series of interior modifications.

WHAT’S UNDER THE BONNET? The engine sends its power to the rear wheels via a six-speed manual gearbox and boasts more punch than the outgoing Sport 350, with an extra 47bhp coming from revised calibration related to the supercharger.

WHAT’S IT LIKE TO DRIVE? Slot in behind the Exige’s beautifully well-positioned steering wheel and you’re immediately aware that this is a car geared up towards making the most of driving. Move off and you’re met by a clutch that isn’t too heavy or difficult to get used to and an open-gate gearbox with an action as close to perfection as you’ll get from a road car.

That 3.5-litre V6 grumbles away behind you, but build the revs and it quickly transforms into a kicking, screaming animal of an engine. It’s accompanied by a change of pace that is genuinely intoxicating, with the torque allowing you to simply lean on the throttle and very quickly gather some serious pace. But it’s that unassisted steering that’s the star here, delivering genuine feedback and allowing you to use cambers to its advantage – the Exige seems to dive into undulations and slingshot itself forward in quite impressive fashion.

HOW DOES IT LOOK? If you want an example of how a small car can have presence, take a look at the Exige. Of course, a huge rear wing and widened body kit will inevitably have an effect on how a car is perceived, but the way the Exige turns heads is impressive, to say the least. Our car, in bright orange, looked particularly stand-out, while the contrasting black sections on the bonnet, roof and diffuser only pushed the flamboyance further.

But it’s what you expect from a Lotus Exige. It’s never been a car to fly under the radar

30 | CarDealerMag.co.uk

TARGET BUYERS:

Those who want an unfiltered and exciting driving experience.

THE RIVALS:

Caterham 620R, Morgan Plus Six, Ariel Atom.

KEY SELLING POINTS: The looks The Lotus turns heads with its huge rear wing and widened body kit, plus the bright orange paintwork!

The cabin The interior is designed around the driver with perfectly positioned controls.

1. Lightweight nature.

2. Massive performance.

3. Track-day versatility.

DEAL CLINCHER:

The Exige Final Edition is a shining example of what Lotus is best at and a fitting swansong for the model in general.

or shy away from attention, so it’s almost reassuring to see it retaining its larger-than-life styling features.

WHAT’S IT LIKE INSIDE? As you’d expect from a car so focused on the art of going quickly, the interior of the Exige isn’t one overburdened by features or systems. The steering wheel, as mentioned, is positioned perfectly and is trimmed in Alcantara, too.

You’ve got sport and race modes within easy reach to edit the car’s settings on the fly, while the gear shifter is placed at just the right height. Creature comforts, such as cruise control, can be added, while air conditioning is a £1,250 option. If you’re planning on using your Exige during the summer, we’d argue that this is a worthwhile purchase.

WHAT’S THE SPEC LIKE? Although the Exige isn’t a car you’ll look towards when it comes to the latest technology, Lotus has added some new features to this Final Edition. It incorporates a new TFT digital dashboard that can be configured to show one of two displays. The first is a more conventional setup in place of ‘regular’ dials, while the second is more like the one you’d find in a full-on race car with a digital read-out and engine speed bar.

A range of exterior colours is available for the Exige that hark back to some of Lotus’s classic models. You can also have an interior colour pack for £500 that will add some trim sections finished in the same shade as the exterior to the cabin.

Driving the Lotus Exige Sport 390 Final Edition is an experience that few others can match.

WHAT DO THE PRESS THINK? Top Gear said: ‘The role it serves, and its legacy once it’s gone, will be to remind you that no one cares as much about driving as Lotus.’

WHAT DO WE THINK? Driving the Lotus Exige Sport 390 Final Edition is an experience that few others can match.

It’s all-encompassing, hugely exciting and feels like a true example of how chassis and engine can be perfectly linked to one another. As a road car it’s sensational and on the track – which we experienced for a few laps – it’s on another level.

Of course, seeing it bow out was never going to be a happy occasion. But to finish on a high like this feels like a more-than-fitting tribute to the Exige’s legacy.

CarDealerMag.co.uk | 31

FORECOURT

VOLVO XC40 RECHARGE

Power

All-wheel drive helps put down the 402bhp and 660Nm on to the road.

Volvo’s heart is set on electrification – and Jack Evans has put its first fully electric model to the test.

THE KNOWLEDGE WHAT IS IT? Volvo is a company with electrification at its very core, with plans to make 50 per cent of its sales fully electric by 2025 – and it’s set to become a solely EV company by 2030. But up until now, it has largely majored in hybrids. The XC40 P8 Recharge represents Volvo’s first foray into fully battery-powered vehicles, converting one of its most popular vehicles to run solely on plug-in power. The question is, can this be the EV debut Volvo was looking for?

WHAT’S NEW? Underneath, we’ve got a whole new powertrain – the same as the one in Polestar’s 2, incidentally, and the pair share the same CMA modular platform, too. It means that although the exterior might appear like a carbon-copy of its more petrol-focused stablemates, the way it propels itself is considerably different.

WHAT’S UNDER THE BONNET? The XC40 P8 Recharge makes use of an all-wheel-drive electric setup, which is a good thing indeed as it has a sizeable 402bhp and 660Nm to translate to the road – not the sort of power outputs you’d expect from a car of this type. In fact, this diminutive little Volvo will outstretch all manner of sports cars.

The ability to charge at speeds of up to 150kW means the battery can be taken from zero to 80 per cent in as little as 40 minutes, while a full charge via a home wallbox will take around eight hours.

WHAT’S IT LIKE TO DRIVE? The extra weight of this battery-powered car can be felt from the off, although there’s no doubting the potency of the electric motor setup. Even moderate applications of throttle cause the XC40 to surge forwards, ramping up speed at an alarming pace.

This Volvo’s ride is a mixed bag, though. It’s soft on most occasions, which means it rolls and lists through bends. However, there’s also a firmness that seems to translate many of the road imperfections through and into the cabin.

We travelled a decent 132-mile route before stopping to charge with the battery showing around 38 per cent remaining. On a particularly cold day, we expected the range to dip below claimed, but this would put it below the 200-mile mark. It seems more than likely then that the car’s range readout was a touch pessimistic.

32 | CarDealerMag.co.uk

Volvo XC40 P8 Recharge Price: £53,155 Engine: Electric motors with 78kWh battery Power: 402bhp Torque: 660Nm Max speed: 112mph O-60mph: 4.7 seconds Range: 257 miles Emissions: 0g/km CO2

HOW DOES IT LOOK? There’s the now standard-fit smoothed-off grille that you’ll find on most EVs on sale today, helping to boost this Volvo’s aerodynamic efficiency. In truth, we like the rather understated design of the P8. There are no gimmicks, just regular – and rather attractive, to our eyes – Volvo styling, which makes it a classy and refined sight out on the road.

WHAT’S IT LIKE INSIDE? It’s spacious, well made and distinctly clean in styling. There are no fussy controls or over-complicated menus, just an accessible touchscreen in the middle and plenty of high-end materials. Given the performance that the XC40 delivers, we’d like to have a little more bolster on the seats, though. This Volvo also does without a proper ‘range’ readout, choosing instead to display a battery percentage.

In terms of boot capacity, the XC40 offers up 452 litres, plus a handy 31 litres in the nose.

WHAT’S THE SPEC LIKE? Prices start from just over £53,000 but Volvo expects most buyers will opt for its Care

by Volvo fixed subscription package, putting the P8 from £619 per month on a fixed 36-month period. This brings a range of dedicated services, including replacement tyres and all servicing costs. The level of equipment is excellent, including a nine-inch central touchscreen that incorporates Google’s automotive services and works brilliantly.

WHAT DO THE PRESS THINK? What Car? said: ‘The Volvo XC40 Recharge Pure Electric has an appealing interior, a decent electric range, rapid performance and impressive safety credentials.’

WHAT DO WE THINK? Volvo’s first venture into the fully electric segment is a commendable one. The XC40 P8 Recharge offers the kind of useable range that buyers are looking for, as well as super-fast charging capabilities. It might be expensive but lower-priced models are in the pipeline – and it’s with those that we predict the XC40 will fully come on song. However, initial impressions are good – and Volvo’s electric future seems to be well and truly on the way.

Interior The spacious and well-made cabin is distinctly clean in its styling.

Styling The design is rather understated with no gimmicks but looks great to our eyes.

TARGET BUYERS:

Drivers who want a practical electric SUV with surprisingly brisk performance.

THE RIVALS:

Audi Q4 e-tron, Volkswagen ID.4, Mercedes EQC.

KEY SELLING POINTS: 1. Decent electric range.

2. Great build quality.

3. Understated looks.

DEAL CLINCHER:

The P8 Recharge offers the kind of useable range that buyers are looking for.

The P8 might be Volvo’s first fully electric car but it’s an admirable foray into the segment and one that will surely find favour with many looking to make the switch to EVs.

CarDealerMag.co.uk | 33

FORECOURT

HYUNDAI KONA THE KNOWLEDGE Hyundai Kona Ultimate 1.0 T-GDI 120PS MHEV

Hyundai has tweaked its popular Kona crossover, but is it good enough to beat much newer rivals? Ted Welford gets behind the wheel to find out.

WHAT’S NEW? There’s a new mild-hybrid 1.0-litre petrol engine. The already bold design has taken a brave pill, too, with a wide new grille along with new LED lighting at the front and rear. There are five new colours and a pair of new trims as well: N-Line and Ultimate.

WHAT’S UNDER THE BONNET? It’s equipped with a 48-volt battery and clever six-speed manual system that works electronically, allowing the engine to switch off when coasting but turn on again in the same gear as soon as the brake or accelerator pedal is pressed.

WHAT’S IT LIKE TO DRIVE? It handles well with direct steering, while the ride is one of the more comfortable in this class. The powertrain isn’t a highlight, though. There’s a real lack of low-end grunt, while the hybrid system certainly lives up to its ‘mild’ billing.

HOW DOES IT LOOK? There’s an even more vibrant range of colours, while the front end gets a complete redesign, with a shallower but wider grille and new mesh pattern that certainly makes it stand out on the road. It’s a design you’ll either love or hate.

WHAT’S IT LIKE INSIDE? Changes have been made to improve quality, such as extended ambient interior lighting and new aluminium trim around the air vents. There’s also more tech, such as a standard-fit 10.25-inch digital dial system. Rear seat space is cramped for adults, while the 374-litre boot trails behind many family hatchbacks.

Price (as tested): £26,165 Engine: 1.0-litre turbocharged mild-hybrid petrol Power: 118bhp Torque: 172Nm Max speed: 112mph 0-60mph: 11.7 seconds MPG: 46.3 Emissions: 138g/km CO2

TARGET BUYERS:

Crossover buyers wanting to stand out from the crowd.

THE RIVALS:

Renault Captur, Vauxhall Mokka, Volkswagen T-Cross.

KEY SELLING POINTS: 1. Pleasant to drive and live with.

2. Bold styling.

3. Long list of standard equipment.

DEAL CLINCHER:

Improved interior and technology builds on an already credible package.

WHAT’S THE SPEC LIKE? The SE Connect kicks off the range and features an eight-inch touchscreen, cruise control, reversing camera and a raft of safety kit. The sportier N-Line trim brings 18-inch alloy wheels and a racier bodykit, along with a Krell sound system and electric folding mirrors.

Premium grade adds more upmarket kit, including heated front seats, a heated steering wheel plus electric parking brake. Meanwhile top-spec Ultimate versions gain electric front seats with a ventilated function, LED headlights and a head-up display.

WHAT DO WE THINK? This update builds on what the Hyundai Kona was good at anyway – offering style, a pleasant driving experience and a long list of standard equipment. The much-improved interior and new technology has certainly improved it further. But with a limited amount of interior space and a pretty mediocre powertrain, it can’t lead the way in the compact crossover class in this petrol guise. Full hybrid or electric models make more sense.

34 | CarDealerMag.co.uk

Cabin

Interior quality has been improved with extended ambient lighting and new aluminium trim.

DRIVE SALES ONLINE AND ON THE FORECOURT Become an RAC Approved Dealer

Now more than ever, car buyers are doing their research online before they step onto the forecourt. That means it’s crucial for dealerships to earn their customers’ trust on their website – before confirming they’ve made the right choice in the showroom.

The RAC Approved Dealer Network is here to help independent dealerships stand out – on screen and on the forecourt. As one of the UK’s most trusted motoring brands, car buyers instantly know they can trust a dealership when they see the iconic RAC name.

It confirms they can buy with absolute confidence.

INCREASE BUYER TRUST

OFFER YOUR CUSTOMERS MORE

GET EXPERT DIGITAL SUPPORT

Iconic RAC branding enhances trust in independent dealerships, online and on the forecourt

As an RAC Approved Dealer, your customers will get 12 months free RAC Breakdown Cover with their vehicle*

You’ll have access to digital assets to add to your website and social channels

Get in touch to register your interest today

Visit rac.co.uk/StandOutOnline Call 0330 100 3807 *12 months free RAC Breakdown cover is provided following the purchase of a vehicle from one of our RAC Approved Dealerships and applies to the vehicle purchased at the RAC Approved Dealership. If this condition is not complied with, we reserve the right to cancel this membership.

RAC Approved Dealer Network is managed by Assurant. RAC Warranty is a non-regulated product, provided by an Assurant company: The Warranty Group Services (Isle of Man) Limited (TWGSIOM), Company No. 94279C, whose registered address is Third Floor, St George’s Court, Upper Church Street, Douglas, Isle of Man, IM1 1EE. MS.DRIVECAR.225AD.0421.CRS-1217 CarDealerMag.co.uk | 35

FORECOURT

MINI HATCH COOPER S SPORT Mini’s current-generation Hatch has had a second facelift. Ted Welford finds out if the changes go far enough.

Under the bonnet

The Cooper S is powered by a 2.0-litre engine that pumps out 176bhp and 280Nm of torque.

THE KNOWLEDGE Mini Hatch Cooper S Sport

Price (as tested): £29,910 Engine: 2.0-litre petrol engine Power: 176bhp Torque: 280Nm Max speed: 146mph O-60mph: 6.5 seconds MPG (combined): 43.5-45.6 Emissions: 140-148g/km CO2

WHAT IS IT? The current generation has been around since 2013 but there doesn’t look to be a replacement until 2025. So for the time being, Mini is back with a new facelift, following the one of 2018, that aims to keep this supermini fresh.

WHAT’S NEW? Most noticeably, it has a new front-end design. There’s also less chrome than before, with Mini buyers seemingly wanting it painted black regardless, we’re told.

Inside, there’s a new ‘smartphone-inspired’ 8.8-inch touchscreen, as well as new ambient lighting that changes colour depending on how loud the volume is.

WHAT’S UNDER THE BONNET? Most are familiar with Mini’s engine range, and it’s not changed on this update, with the same One, Cooper, Cooper S and John Cooper Works options available, and with power figures ranging from the first car-friendly 101bhp One to the 228bhp JCW hot hatch.

Our test car is the Cooper S – the less hardcore hot-hatch option. Powered by a turbocharged 2.0-litre engine, it kicks out 176bhp and 280Nm of torque. There’s a choice of manual or automatic, with our car using the former. With the sprint to 60mph taking 6.5 seconds and a top speed of 146mph, it’s certainly not lacking in pace.

WHAT’S IT LIKE TO DRIVE? It can dart down twisty back roads at an impressive rate, feeling light and agile. The engine encourages you to push to the top of the rev range, when it begins to sound slightly more raucous but without ever being over the top.

There’s also a new adaptive suspension available – fitted as standard to Sport versions – which aims to offer more in the way of comfort.

HOW DOES IT LOOK? It’s the front of the Hatch that gets most changes, with a larger grille being fitted, along with black surrounds for the headlights and grille itself. The traditional circular sidelights in the lower bumper have also been ditched, with new vertical slats introduced – helping to give the car a wider look, as well as improving airflow. In true Mini style, there’s also greater personalisation available, including three new colours and five new wheel designs. A cool

36 | CarDealerMag.co.uk

TARGET BUYERS:

Those valuing style and fun over practicality.

THE RIVALS:

Audi A1, Seat Ibiza, Abarth 595.

KEY SELLING POINTS: No messing The main changes to the styling are at the front with a new grille and black light surrounds.

The cabin

1. Great to drive.

2. Fun styling.

3. Extensive personalisation possibilities.

DEAL CLINCHER:

As charming as ever, but now with a fresher look and muchimproved touchscreen.

Updates include a new touchscreen that now feels more integrated.

‘Multitone roof’ option essentially blends three colours into one in a gradient-like effect. It’s gimmicky but does actually look quite good.

WHAT’S IT LIKE INSIDE? In previous iterations, the touchscreen looked clunky (and a bit of an afterthought) but feels well integrated now, while the larger 8.8-inch size and new graphics and displays mean it’s great to use. As well as ‘touch’, a traditional rotary controller can still be used.

As before, though, the Mini’s key shortfall is cabin space. Treat it as a two-seater and it fares well, but no adult will be able to get very comfortable in the rear seats, while the 211-litre boot is tiny. The five-door Hatch is marginally more spacious, though.

WHAT’S THE SPEC LIKE? The Mini is a model that few will keep ‘standard’, with many making use of the seemingly never-ending options list. That said, there are three ‘styles’ – Classic, Sport and Exclusive.

Standard equipment is decent, though, and includes LED headlights, air conditioning, a new digital dial system and the aforementioned 8.8-inch touchscreen. The Sport is basically the John Cooper Works on a budget, bringing a sportier bodykit, 17-inch alloy wheels and rear parking sensors plus cruise control. Meanwhile the Exclusive has more in the way of luxury, thanks to a full leather interior and attractive 18-inch wheels.

Prices start at £16,800 for the One in Classic trim, but many will go for a higher trim and engine, in which case it’ll soon be costing well into the £20,000s and beyond.

The way it looks will be enough for many to sign on the dotted line.

WHAT DO THE PRESS THINK? Autocar said: ‘It’s still not as accomplished or quick as some, and it costs a little more to buy, but it remains an endearing and entertaining choice.’

WHAT DO WE THINK? It seems expensive for what it is and it’s so much less spacious than superminis such as the Volkswagen Polo and Renault Clio.

But this isn’t a car bought using a spreadsheet, rather one that just gets under your skin as soon as you get behind the wheel. The way it looks will be enough for many to sign on the dotted line, but combine that with an upmarket interior plus hugely enjoyable driving experience and it truly is one of the most appealing small cars you can buy today.

Celebrating 20 years of the BMW Mini CarDealerMag.co.uk | 37

20 FEATURE

It’s been a little while since the German brand reinvented this truly British icon – so how has it changed over the years?

Jack Evans takes a look.

YEARS OFBMW MINI

T

he Mini is as British a brand as they come.

But back in 2001, a very German BMW took to reinventing this legendary icon, transforming the tiny original Mini into a far more luxurious, and up-to-date affair.

It was a success, too, with the Mini going on to become a smash hit across the globe.

Since its inception, it has changed a fair bit as well, evolving and shaping to become the car we know today. Let’s take a look at some of the standout models which have hit the road over that time.

Arrival of the Cooper S

Hot on the heels of the One and Cooper variants came the Cooper S. With performance in mind, it combined a 1.6-litre petrol engine with a supercharger, resulting in a lot more power than the ‘standard’ version. It had a more focused suspension setup too while the bonnet air intake became a design feature for all future models.

The original

The first generation of BMW Mini was officially revealed at the 2001 Geneva Motor Show. It took the motoring world by storm thanks to its retro looks and classy interior and when it hit the road it soon became clear BMW had crafted a car that wasn’t just great to look at but was great to drive too. A more powerful Cooper was produced as well.

Production ramps up

Incredibly, by May 2002 – just over a year since it went on sale – the 100,000th Mini was produced at BMW Group’s Oxford plant. It was testament to the success of the design and execution of the Mini, that’s for sure.

The Mini goes drop-top

Fast-forward to 2004 and the Mini Convertible arrived, bringing that wind-in-your-hair experience to the already popular model. It still retained space for four but used a fabric roof that folded up behind the rear seats and didn’t need a cover.

The boot may have been small at 120 litres with the roof open, but as with the rest of the range, the Convertible sold like hot cakes.

38 | CarDealerMag.co.uk

Behold, the GP!

Things took a turn for the more serious with the arrival of the GP in 2006. Limited to just 2,000 models worldwide, the lighter, faster and meaner GP sold out before a single customer had even driven a car.

Arriving as the most powerful production Mini to date, it used the same 1.6-litre supercharged petrol engine as the Cooper S, but it was boosted for more power.

The difficult second album

In August 2006, Mini chose to reveal its secondgeneration car. It retained the same retro look like the original but was bigger and more efficient than before. The 1.6-litre engine was changed, while the Cooper S used turbocharging instead of supercharging for the first time.

The start of electrification

Here comes the Clubman

Mini took its first step in expanding the range with the introduction of the Clubman in 2007. Debuting a new estate car-like layout, the Clubman offered more space than the conventional hatch but retained the standard car’s nimble handling and punchy range of engines.

At the 2008 Los Angeles Auto Show, Mini presented the E – an electric concept. It created 500 Mini E vehicles that were shipped for testing by private customers in California, New York and Jersey, with the results from this trial relayed back to Mini. It also helped BMW to develop its electric i3 model.

The Countryman hits the road

Not content with the Clubman, Mini expanded the range in 2010 with the Countryman. Taking advantage of the growing appetite for SUVs, the Countryman effectively raised the Mini recipe further off the ground, with seating for five, four doors and a reasonably large boot.

Third time’s the charm

The Roadster and Coupe arrive

2011 saw the arrival of the Mini Coupe – a twoseater version of the standard hatch and famously styled to resemble a backwards-facing baseball cap. A soft-top version – the Roadster – used a fabric roof like the standard convertible but had a sleeker, more aerodynamically focused design.

A change of pace for Mini

In 2013 Mini introduced the Paceman, which represented a mash-up of an SUV and hatchback. In truth, it was a slightly odd combination, as it had an upright bodystyle but just three doors. Sitting alongside the rest of the Mini line-up, it saw the firm’s range of cars swell to seven, ensuring there was a Mini car for all buyers at the time.

Shortly after the introduction of the Paceman came the introduction of a third-generation hatch. It debuted a new interpretation of the car’s classic styling but was still built in Oxford and was centred around that fun-to-drive experience. Arriving in the UK in 2014, the third-generation hatch was bigger in every sense and used 1.5-litre three-cylinder engines – although the more powerful Cooper S benefited from a fourcylinder, 2.0-litre petrol.

An electrified Countryman

A new five-door variant

Shortly after the arrival of the third-generation Mini came a new five-door variant that brought improved rear legroom, a third rear seat and a more accessible cabin. It proved immensely popular and has continued to be a great option even today.

The Clubman – bettered

Mini followed the revitalisation of its hatchback with the introduction of a revised Clubman. It was bigger than before but retained the useful split rear doors, which gave access to a larger boot. The cabin was more spacious as well, while a variety of petrol and diesel engines were available, too.

In 2016 Mini showcased a real attempt at electrification with its Countryman plug-in hybrid. The first hybrid model to be offered by the brand, it combined a three-cylinder petrol engine with an electric motor and batteries. Capable of driving for up to 25 miles on battery power alone, it was easily the most economical car in Mini’s stable.

The present day

The Mini goes electric

The year 2020 was a big deal for Mini as it was when the company’s first EV arrived in showrooms – the Mini Electric. It’s proved popular, too, despite its relatively compact range of 145 miles.

In January 2021 Mini presented the latest incarnation of its famous hatchback, delivering a new look and a range of technology updates. Although the styling was classical ‘Mini’, some key refinements – such as a new body-coloured front grille – ensured that it remained looking sharp and up to date.

CarDealerMag.co.uk | 39

40 | CarDealerMag.co.uk

FOCUS ON Autoglym

lifeshine.com

How to give an accurate online car valuation With more and more car transactions being completed in a non-physical environment, how do dealers accurately value part-exchanges?

I

f there’s one shift in consumer behaviour that’s been bigger than any other during the multiple lockdowns of 2020 and 2021, it’s the transition to online retail.

Even now, with physical car sales sites reopening with a vengeance and the high street slowly doing its best to blow off the cobwebs, online transactions are still a major part of everyday life.

Customer behaviour has changed, too. According to Auto Trader, around 41 per cent of car buyers today expect to purchase their next car online, while 61 per cent like the idea of it and would do so if they were 100 per cent confident to.* ‘It’s clear there is a meaningful shift in sentiment towards digital retailing. We believe it represents an exciting opportunity for the industry to significantly improve the consumer experience, and in turn accelerate the buying process,’ says Auto Trader CEO Nathan Coe. ‘But as the prospect of buying a car completely online is new to most, many consumers can’t fathom how it would work. When they are offered a clear scenario which explains the process, the appeal increases to 61 per cent. It’s an awareness of online buying options which is a challenge.’

One of the greyest areas for consumers is how to accurately get a valuation for their trade-in. It’s a grey area for the trade, too, and is particularly difficult for smaller operators and single-site dealerships who don’t have the benefit of group underwriting or add-on businesses that can dispose of their unwanted PXs for them.

Nathan Skinner is an independent luxury car dealer from Cheshire. He said: ‘I sell probably one in three of my cars now without ever seeing the customer and I have to take a chance on the part-ex.

Customers do their homework but they also set the bar quite high. If their PX is worth, say, anywhere between £3,000 and £4,000 looking at what’s on the market, they want me to give them £4,000 for it.

But I want to give them £2,500, which allows me a bit of wiggle room to rectify any faults or be able to sell it through an independent auction or within the trade for its stand-in value.

‘So when I know what they’re part-exing I’ll have a look at what’s around and see what online sites will give them, then make my bid a little bit higher. I need the space for ones with a better return attached to them, so I want to move them on as quickly as possible.’

Andy Puddick, an independent dealer from Southampton, has a very similar view. ‘It’s a bit of a poker game,’ he said. ‘I take the view that if the customer has already decided they want your car then you don’t let yourself get underbid. Yes, they have a choice, but they’ve already made their mind up 90 per cent of the time, so if you’re polite, reasonable and explain that you can’t offer them CAP retail for a car that you won’t even see until they turn up for the car, most of them are sensible about it’ A good way to provide safe valuations is to find a source for resale, which may be easier for the larger dealer groups and online digital platforms that have the buying power and resource, but not necessarily for the smaller operators. ‘We get a lot of stock from local dealers who operate solus sites,’ says Rob George from Anglia Car Auctions in King’s Lynn. ‘It’s where an independent auction house can be a big help, but not every town has one. We get cars from all over as a result.’

Growth in the used car market also helps dealers to secure incremental revenue from finance and insurance products, accessories and paint protection. Autoglym’s market-leading LifeShine vehicle protection system is ahead of the curve when it comes to paint protection, by employing the latest technology. LifeShine’s paint protection formulation features colour enhancement technology to provide superior depth of colour, helping to return even used cars closer to their former ‘as new’ paint finish.

Tests carried out with four competitor products showed that the improved LifeShine product had a superior depth of colour difference of up to 31 per cent.

Xxx

As the prospect of buying a car completely online is new to most, many consumers can’t fathom how it would work.

Nathan Coe Auto Trader CEO

To find out more about LifeShine and how it can help benefit your business, visit lifeshine.com *Data sourced from Auto Trader’s Insight Report

CarDealerMag.co.uk | 41

FEEDBACK TOP TWEETS

Editor James Baggott asked if you’d tried valuing your car this month following continued price rises. Here’s what Twitter had to say…

Your comments via email to editorial@blackballmedia.co.uk

When is the right time to service stock?

Still trying to find my feet with a few bits. I am still not 100 per cent sure of when to service cars before delivery. Most of my stock is up to 10 years max 100,000 miles. I am used to JLR and Audi standards of a minimum three months/3,000 miles until service.

For example, I have an 11-plate Ibiza with 80,000 miles someone is viewing tomorrow. Service due July 30 and my gut feeling is to get it done but wanted some opinions.

DCS01 Personally, I give a fresh service to all my stock unless it has had a recent service. And I would service that Ibiza. Won’t cost a fortune and might save a few headaches later on...

Kes

michael cundall @mnine1

Why isn’t MK2 Focus RS on that list? Try buying one!

infomotiveUK @infomotiveUK

As a private buyer, I suspect being excluded from traditional car auction venues and bidding online is also having an impact.

Hopefully this changes soon, as private buyers are currently being shafted.

Gareth Jones @GJ_31

As a seller, it’s crazy at the moment. Car values have increased steeply since dealers opened in April, LCV values are worse and have been on the up since April ’20!

Thanks. I have given it a fresh ticket. My thoughts were for the sake of £150 it takes the headache of them taking it somewhere and some mechanic trying to tell them it needs work.

DCS01

PICTURE OF THE MONTH

A plane making an emergency landing on a highway isn’t the sort of thing drivers want to see but that’s what happened in New Lenox, Illinois, because of a stalled engine!

Amazingly, the single-engine Beechcraft avoided vehicles on the interstate route but, unsurprisingly, caused tailbacks. The pilot and his three passengers had minor injuries.

We always find it best to service and MOT stock, ideally before advertising. It hasn’t got to be a full service, just a warranty/ multipoint inspection and lubrication service (oil change) and stamp the book accordingly. Put it in your ad and it can only help sell the car and stop the purchaser taking it to Kwik-Fit for one of their cheap services and finding £1,000+ of exhaust/ brakes/battery/suspension issues that you will then have to argue about and potentially end up with a nasty review.

BMX Bandits Very true. However, in reality what are the chances of a buyer of a 10-year-old Ibiza taking it for a service?

I’ve more chance of Lord Lucan riding up to my front door on Shergar! Knowing the typical horrid greedy buyer profile of that sort of car, I’d seriously imagine it’s already had its lastever service.

Thirty quid’s worth of oil, filter and labour would be money well spent for the seller, although it won’t be appreciated.

BHM

Oil and filter change plus new MOT. Two benefits – it’s a selling point. You know the car is right and it then keeps it from going to a garage to rip it to shreds.

What’s the cost of something like that? £15 for parts and maybe £20 for someone to do it. No-brainer.

You can add what looks like a lot of value to a retail customer for not a lot of outlay by you.

Rory RSC Why would you not service and MOT everything you sell? It’s part of the inspection routine.

I even service cars when they were done last week. I want to know the oil and filters are top-spec stuff, not some eBay garbage parts. For brakes too, we strip-clean, inspect and put in new pads and possible discs if needed. Advertise as done and show people the benefits.

But the real reason is YOU know it’s going to be okay.

David Horgan

More and more of our readers are joining the debate – and it couldn’t be 42 | CarDealerMag.co.uk

Our website at CarDealerMag.co.uk

On Twitter: Follow @CarDealerMag

Forum: CarDealerMagazine.co.uk/forum

SALES

How long can this golden period last for?

These last few months have been on fire. We can’t buy, prep and sell quick enough. How long is this going to last?

Trying our best to run to appointments only. Much easier to manage and offer a decent experience compared with people just turning up unannounced.

Much higher conversion with the appointed customers too, particularly the ones who have left a deposit.

How is everyone finding things?

Rory RSC A bit slow, similar to a few friends. Good to hear you are doing well though.

Frank Cannon I was under the impression things generally are cooling down. They are for us.

Halfpenny We’ve been quieter since things have started going back to normal compared with when we were doing click-and-collect.

Lakeside

Being busy and working by appointments definitely suits us, if for no other reason than trying to whittle down the test pilots and tyre-kickers.

Had the showroom doors open for 15 minutes on Saturday and three lots of people strolled in – none looking to ‘buy’.

Biggest problem is replacing stock. We have half what we normally do, and the prices are unbelievable.

Harry George

We’ve teamed up with Car Sales Memes to bring you a few of their funniest captions and slogans each month. Enjoy!

Much the same as you Rory, we have been absolutely smashing the numbers.

But you’re spot on wondering how long things can carry on like they have, as it does very much feel like a bubble.

I think it will all come down to what people can spend their money on. So as long as the economy doesn’t overheat, people don’t start losing their jobs in large numbers and we can control this shocking virus, we have the potential to sell good numbers of cars and, more importantly, make good margins.

BMX Bandits

Is Google going into the used car business?

Car Dealer reported that Google is testmarketing its own platform, which it intends to be global.

I think that would be good news for the trade. Apparently there is no way they would be charging anywhere near Auto Trader, and it could even be free from the outset.

Trade Vet Google has the resources and expertise to really compete with Auto Trader.

They would be a serious player if they did do this.

Blenheim Car Sales Very interesting! I will watch with a close eye.

Mikey360

Everybody and their dog think they can take on Auto Trader, but if anyone can Google can.

Row Just worry how we will show up against the big boys, who will of course control their search appearances by means we wouldn’t probably have access to. We would be a dot of sand in the desert on a Google platform.

David Horgan It’d be nice to see a big player like that enter the market and shake it up. The likes of Auto Trader should be concerned. Chasing the revenue, these types of players certainly have the resources and know how to do it.

Lazz

easier to get involved! Sign up to our forum at CarDealerMagazine.co.uk/forum

Search for Car Sales Memes on Facebook, Twitter or Instagram and give them a follow!

Car Dealer reserves the right to edit comments CarDealerMag.co.uk | 43

DASHBOARD

SUPPLIER NEWS

A ROUND-UP OF WHAT’S BEEN HAPPENING ACROSS THE COUNTRY HEYCAR

Payment period is doubled for dealers

HEYCAR is giving dealers extra breathing space as they reopen by doubling the length of its payment terms to 60 days until July 1.

It follows a number of initiatives from the online car marketplace during lockdown and comes ahead of an expected record April for the trade as showrooms reopened.

Chief commercial officer Karen Hilton said: ‘We want to ensure dealers are free of distractions as they welcome back customers.’

IVENDI

Need for dealer intervention shapes new trend AN ONLINE car-buying pattern of ‘evening browsing, morning buying’ has emerged over the past year, according to motor retail technology specialist iVendi.

It said that during the pandemic the busiest time for browsing through its platform was from 6pm to 9pm. However, finance applications didn’t tend to be made until between 9am and 3pm the next day. Chief executive James Tew said that was because most sales were classed as ‘complex’ so needed dealer intervention.

STARTLINE

Buyers’ expectations ‘have been altered’

PEOPLE have come to expect a speedy and more convenient way of buying used cars online during the pandemic.

That’s according to Startline Motor Finance, which says there has been a shift towards assuming dealers will match retail processes common in other sectors. Chief executive Paul Burgess said: ‘Successive lockdowns have forced dealers into a situation where they have needed to maximise online sales.’

44 | CarDealerMag.co.uk

MANHEIM

It then got me thinking ‘What does the future hold? Not just for the high street, but what about retail in general, and what about car sales?

Ben Garside p55

MANN ISLAND FINANCE

Vehicle broker contract £1bn lending milestone extended by four years marked by voucher gift

MANHEIM has signed a four-year extension to its partnership with vehicle broker Auction Plus.

It covers up to 750 cars and LCVs a year going through Manheim’s Colchester auction centre and builds on the 10-year-strong relationship between the two businesses, which has seen Manheim – part of Cox Automotive – resell more than 15,000 vehicles from Auction Plus.

Picture shows a pre-pandemic sale at Manheim’s Colchester centre

MANN Island Finance is celebrating notching up £1bn of lending.

The money milestone was reached at Alpha Motors in Wigan, and to celebrate, Mann Island Finance MD John Hughes gave customers Bernie and Damian Glynn a voucher for their vehicle’s first service. He added it had doubled its market share over the past year.

Seen from left are Bernie Glynn, sales manager Lee Darbyshire, Damian Glynn and John Hughes

Cartotrade is a company you can rely on with a wealth of experience and a desire to help your business make and save money in these uncertain times.

Kevin Watson – Co-Founder Over 40 years in the motor trade

Laura Cannon – Co-Founder Over 20 years in B2B remarketing

Visit Cartotrade.com to register for a FREE trial and see for yourself how we’re helping more and more dealers just like you, right across the UK. • Proper cars • Proper dealers • No contracts • No price increases

• Buy & sell quickly • No buying or selling fees • Real time dealing • Only £40 per month CarDealerMag.co.uk | 45

Run by experts with over 20 years of online trading experience

Whatever’s next, let’s do it together When the world changes quickly, it can feel hard to know what your next move is. That’s why our Account Managers take the time to really understand your business. With their knowledge of customer service and innovative solutions, they can help you simplify finance and keep your business moving forward.

Get up-to-date business support at blackhorse.co.uk/dealer/home/resource-hub 46 | CarDealerMag.co.uk

FEATURE.

A SELECTION OF STUFF TO BUY WITH YOUR LOCKDOWN SAVINGS! Bentley Balance Bike

£450

Sonos Roam

Apple AirTag

Now we’re allowed to stretch our legs a little more, it’s likely that people will be travelling further afield and exploring the UK. Activities such as camping and hiking are set to boom, with people wanting to make the most of the summer and easing of restrictions. If you want to take your music for the adventure, then a portable speaker is a great idea. One of the best – and most recent – is the Sonos Roam.

Packing the sound quality Sonos is renowned for into a smaller package means there’s no need to trade off punchiness for portability.

Forever losing your keys? Apple’s new AirTag is a surefire way to find them again. It works with your iPhone via the Find My Phone app and attaches via a keyring-style loop. Simply fix it to your keys and forget about it. Then, when you need to find your keys, you can use your phone to see your AirTag location – and, as a result, your keys.

You can even use it to play a noise, highlighting where it is!

£159

from £29

Car dealer new strip ad Revised

Worx Hydroshot

£119.99

Now summer is upon us, it’s probably time for most drivers to start thinking about giving their cars a much-needed clean. The roads may be less grit-strewn than in winter but sand and dust can quickly accumulate on your pride and joy. The Worx Hydroshot is a battery-powered pressure washer ideal for those in-between cleans. Most impressively, it can use pretty much any water source – you can even attach it to a water bottle!

4/4/18

12:01

Page 1

Excellent variety of weekly stock from premium sources

The Fleet Auction Group

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

Professional Vehicle Auctions for Professional Vendors & Buyers

www.fleetauctiongroup.com

A balance bike is a great way for children to get used to life on two wheels. Think of it as partscooter, part-bicycle, allowing kids to get a feel for balancing themselves while stabilising with their feet.

Bentley has recently introduced its own balance bike, and although expensive at £450, it’s packed with the kind of features you’d expect from the luxury firm, such as a magnesium alloy frame and a special locking brake system.

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

Call 01530 833535 or go online for account application CarDealerMag.co.uk | 47

FEATURE

The best aerodynamics of any production car

5

THINGS TO KNOW ABOUT THE LIGHTYEAR ONE

Perhaps unsurprisingly, there’s a heavy concentration on efficiency here, and it’s no huge surprise that with the Lightyear’s sleek body it has the lowest aerodynamic coefficient of any production car today.

This is achieved through its swoopy elongated shape, along with details such as its wheel spats – covers that go over the wheels to reduce drag.

Ted Welford reports on the sun-powered EV that may well be arriving here from the Netherlands before the year is out.

A

s we edge ever closer to 2030, when new petrol and diesel cars will no longer be able to be sold here, electric models are becoming increasingly popular – and there are plenty of big questions being asked about EVs. How will I charge them if I can’t plug in at home? Will they overload the grid? Is the electricity as environmentally friendly as we think?

All worthy questions that will have to be answered.

But imagine if a car could answer all of those questions in one swipe. Well, the Lightyear One might just do that, as it’s the first long-range solar car.

Confirmed to be commercially available from the end of 2021, it could help to answer the question of EV charging.

Here are five things to know about it…

48 | CarDealerMag.co.uk

£130k

The price tag for an early high-spec Lightyear One

Solar panels cover the rear, roof and bonnet When it comes to powering our houses using the sun, the roofs of buildings are plastered in solar panels. So you’re probably wondering how the same can be achieved with a car with a much smaller amount of space?

Well, the Lightyear One’s rear, roof and bonnet are plastered in five square metres of solar panels that manage to harness the energy from the sun to charge the car’s battery, allowing for a claimed range of 450 miles.

Even in the Netherlands, where the One will be produced, it’s said to be able to offer more than 6,000 solar-powered miles in a year. The rest of the time, it can simply be charged like a normal EV, although Lightyear says it expects owners will only have to charge it at the mains once a month.

It’s still a practical car you could use every day You might expect the Lightyear One to be some far-flung concept that can’t be used every day, but that’s far from the case. Thanks to its generous proportions – it’s roughly the same length as a seven-seater Audi Q7 SUV – it can accommodate five people, while the boot has a huge 780 litres of luggage capacity.

New tyres specifically developed for it

It’ll be available from the end of 2021 – and it might even come to the UK A solar-powered car might seem like a far-flung concept that’s set to remain on a motor show stand, but the Lightyear One really is making production, and from as early as this year after spending a long time in development.

Set to be available in various countries across Europe by the end of 2021, the One could come to the UK, said Lightyear CEO Lex Hoefsloot, although it’s likely to be available in left-hand drive only.

And the cost? Well, pioneering technology is rarely cheap, and it’s safe to say this car isn’t. With early high-spec models costing €150,000 (£130,000), you really will have to be committed to the cause.

To enhance efficiency further, the Lightyear One has a set of tyres that have been specifically developed for it.

Announced as part of an ongoing collaboration with Bridgestone, the special tyres have as little rolling resistance as possible – achieved via a new tread pattern and a narrow width along with a large diameter plus high inflation pressures.

Called Turanza Eco tyres, they offer a 90kg saving across four tyres compared with the typical rubber used on an electric car.

CarDealerMag.co.uk | 49

DASHBOARD

BUSINESS NEWS

A ROUND-UP OF WHAT’S BEEN HAPPENING ACROSS THE UK FURLOUGH

Claims fall ahead of reopenings

THE number of people furloughed on government support in the UK dropped in March as businesses prepared to reopen.

Provisional figures show 14 per cent of eligible people in the UK were furloughed on March 31, versus 16 per cent a month earlier. It marks the last set of data before pubs and non-essential shops were allowed to open for the first time in months.

ECONOMY

Britain ‘set for best growth since World War II’ THE Bank of England has forecast the economy will grow this year at its fastest pace since the Second World War as Britain stages a vaccine-fuelled recovery.

It predicts gross domestic product – a measure of the size of the economy – will rebound by 7.25 per cent in 2021 – up from its previous prediction of five per cent and the best year of growth since 1941. The pandemic saw the country suffer its biggest drop in output for 300 years in 2020, when it plummeted by 9.8 per cent.

CHANGE

Homeworking more than doubled in 2020

PROPERTY

Dwindling supply of houses pushes prices up HOUSE price growth accelerated across the UK in April amid a slowdown in the supply of homes, according to surveyors.

A net balance of 44 per cent of an unspecified number of property professionals saw buyer inquiries pick up last month, the Royal Institution of Chartered Surveyors said. The survey sample covered 512 branches with 275 responses, and 75 per cent of surveyors noted house prices increasing rather than decreasing. But a lack of fresh property listings was the biggest concern.

THE proportion of people working from home more than doubled last year because of lockdown, according to new data from the Office for National Statistics.

It said more than a quarter of people – 25.9 per cent – out of a total of 32.5m worked at home at some point in the week they were polled, compared with 12.4 per cent during the same period in 2019.

WE HERE FOR FORYOU YOU WE ARE HERE 50 | CarDealerMag.co.uk

PHONE BANKING

Voice tech foiled nearly £249m of fraud last year

MORE THAN JUST A

FINANCE COMPANY TECHNOLOGY that recognises people’s voices has stopped nearly £249m of customers’ money from going to phone fraudsters over the past year.

That’s according to HSBC UK, which said its Voice ID system now had more than 2.8 million customers. It detects if the caller’s voice matches what’s held on file.

Kerri-Anne Mills, head of contact centre and customer service at HSBC UK, said: ‘We’ve seen a 50 per cent drop in reported telephone banking fraud year on year.’

TALK TO US TODAY. 0115 946 6260 enquiries@frfl.co.uk frfl.co.uk/car

CASH WITHDRAWALS

ATM use jumps as lockdowns ease CASH machine use has jumped as lockdown restrictions have eased at different rates across the UK, according to ATM network Link.

Compared with early April, an extra £200m is now being withdrawn per week. With non-essential retail starting to reopen, 250 ATMs mostly within sites closed because of lockdown were working again. Transactions are still only at 65 to 70 per cent of where they were just before the crisis, though.

just a phone call away.

CarDealerMag.co.uk | 51

DASHBOARD

INDUSTRY VIEWS NEWS AND THOUGHTS FROM SOME OF OUR CAR DEALER LIVE GUESTS ZPN ENERGY

Two choices for dealers over charging EVs

CEO Ian Stillie talked about the challenges dealerships and consumers face when making the switch to EVs. ‘The biggest encumbrance to this change is not fiscal, it’s actually the charging infrastructure,’ he said.

‘The home charging environment is evolving quite a bit, but we have to create a buffer to manage time.’

Car dealers had the same constraints as everyone else and could either upgrade, which was a difficult and drawn-out process, or install rapid chargers, of which it said it was the UK’s only manufacturer.

AUTO TRADER

Don’t be afraid of prices increasing even more COMMERCIAL director Ian Plummer explained that dealers could expect already-strong prices to accelerate in May and into the summer – but it was something they ‘shouldn’t be afraid of’.

He said: ‘Some retailers are worried that the prices they’re seeing are too high. I believe they’re likely to grow further in the weeks and months ahead, simply because of the demand levels we’re seeing.’

In the week after showrooms reopened, the average price of a used car on Auto Trader rose by 5.8 per cent year on year.

‘That’s a huge level of growth of demand,’ Plummer said. ‘Even if it drops back a little bit, we’re probably likely to see demand levels that are higher than previous years. And we’re probably likely to see sales levels just like summer and autumn last year where we had positive single-digit – sometimes high single-digit, low single-digit – numbers compared to the prior year.’

T S A C D PO THIS MONTH’S HIGHLIGHTS CLICK HERE TO LISTEN TO MORE CAR DEALER PODCASTS 52 | CarDealerMag.co.uk

CAP HPI VALUATIONS expert Derren Martin spoke about the unprecedented used car market and value changes it had made when he took part in the podcast series in April.

‘The market is so strong. It’s stronger than we’ve ever known.

‘The word “unprecedented” has obviously been used a lot in the last few months or year, but this is stronger than it was going into June last year.

‘We’re going to move values up this month by around two per cent on average. That’s the largest single movement up since 2009, so it is absolutely going great guns out there.’

Martin added that in recent weeks Cap HPI had been adding ‘almost 0.5 per cent a day’.

The latest from our fleet.

Long-termers: p61

Watch our Car Dealer Live broadcasts as they go out or catch up on any that you’ve missed at: cardealermagazine.co.uk/live

We’re taking inquiries in the same way as we did during lockdown. We want people to reserve and essentially click and collect or have it delivered.

Craig Vladimirovs Car Quay

G3 AUCTIONS

Dealers still want to touch and feel vehicles

OWNER Matt Dale talked to Car Dealer at the opening of its new auction centre in Castleford.

He said: ‘We are very much a physical first and we’ve spent a lot of time, money and investment on this.

‘Speaking to the buyers, they still want to come and touch and feel the vehicles. We think this is a wise investment, especially as we have online buyers at the same time.’

While physical sales are clearly important to the firm, digital events have kept it going during lockdown, and for the sale we attended, 300 online bidders were competing with around 70 in the halls. Dale added: ‘Online is encouraged, but for those that want to come on site they can come and bid accordingly as well.

‘Dealers like to engage with one another, chat and speak about what’s going on in the market, and that’s very difficult to do online.’

HEYCAR

Just 23 per cent staying in brand CHIEF commercial officer Karen Hilton talked about some of the surprising figures they’ve seen on the platform.

‘We’ve seen a huge spike in the number of people valuing their car on Heycar, because those used prices are going through the roof, but only 23 per cent of those people are staying in brand. It’s much lower than you would think, but if you think about how cars have changed over the years, there are so many segments between segments now that you can flit around.’

Car Quay’s Jamie Caple

CAR QUAY BOSSES Jamie Caple and Craig Vladimirovs explained that they actually preferred some of the ways they were forced to operate during the lockdowns.

‘To some extent we’ve kept the front door locked,’ Vladimirovs said. ‘People are welcome in, obviously, but we’re not advertising that fact. We’re taking inquiries in the same way as we did during lockdown. We want people to reserve and essentially click and collect or have it delivered.’

Caple said: ‘We thought we might say if you’re not going to play by this way of doing it [deposit before visiting] then you’re not coming in, but if another garage will let them test-drive without a deposit they may go there and we want their business so we will do what the customer wants.’

CarDealerMag.co.uk | 53

DASHBOARD

FINANCE NEWS INCREASING DEMAND

Moneybarn owner to focus on lender as it rethinks strategy

by John Bowman john@blackballmedia.co.uk

T

he owner of Moneybarn is to focus on the non-prime car finance lender as part of its new business strategy after quitting doorstep lending after 141 years.

A total of 2,100 jobs at sub-prime lender Provident Financial are now at risk, it confirmed, adding that the move was down to ‘changing industry and regulatory dynamics’ as well as ‘shifting customer preferences’. Bosses at the credit business Provident Financial is quitting doorstep lending said they would instead be concentrating on the Moneybarn car finance business as well as the Vanquis Bank credit card division, both of which have been doing well, including seeing increasing demand for vehicle finance.

It comes as Provident revealed it suffered a £113.5m pre-tax loss in 2020, with £74.9m losses in the home credit division alone. By comparison, Moneybarn brought in a pre-tax profit of £10.9m, while Vanquis made £38m. Provident chief executive Malcolm Le May said: ‘It is with deepest regret that we have decided to withdraw from the home credit market and we intend to either place the business into managed run-off or consider a disposal.’ Winding down the business or selling it will cost Provident some £100m.

Le May added: ‘Our credit card and vehicle finance businesses saw improving trends during the first quarter of 2021, with credit card spend improving and the demand for vehicle finance increasing month on month.

‘These positive trends, supported by the group’s strong balance sheet, mean that we feel confident about how we are positioned in our markets.’

Provident’s doorstep lending division has suffered a spike of mis-selling complaints by customers recently, among other problems. Claims management companies have targeted it as a new stream of revenue after the deadline for the payment protection insurance misselling scandal passed, and the Financial Conduct Authority launched a probe in February into a number of issues, including whether Provident carried out proper affordability checks before lending. In February 2020, it was revealed that Moneybarn had been ordered to pay out nearly £33m over its mistreatment of customers.

FLA

New business grows for first time in six months THE consumer car finance market enjoyed a 10 per cent growth in new business volumes in March 2021 compared with the same month in 2020 – the first increase for six months, latest figures from the Finance & Leasing Association show.

During the first quarter of 2021, though, new business volumes were 16 per cent lower than in 2020’s first quarter.

The consumer used car finance market reported new business volumes up by 24 per cent in March – their fastest rate of growth for seven years – while the value of new business grew by 32 per cent.

New business volumes were 15 per cent lower in 2021’s first quarter than in 2020’s.

The consumer new car finance market, meanwhile, reported a fall in new business volumes of two per cent in March, while the value of new business grew by nine per cent.

New business volumes were 18 per cent lower in 2021’s first quarter than in the first three months of 2020. The FLA said motor finance providers were increasingly optimistic about the rest of 2021.

WE HERE FOR FORYOU YOU WE ARE HERE 54 | CarDealerMag.co.uk

IN ASSOCIATION WITH

TIME IS MONEY BEN GARSIDE

A MONTHLY LOOK AT THE WORLD OF AUTOMOTIVE FINANCE AND MARKETING

Long-term thinking is key to navigating car sales future

I

Ben Garside is marketing manager for First Response.

Call him on 07817 518739 or email ben.garside@frfl.co.uk

recently took a trip back to my home city for a day visiting friends and family while also doing a little shopping. It wasn’t a great day. The weather forecast changed as I headed over to Derby, and throughout the day it just kept raining – typical British weather. This meant that most of my planned catch-ups were short-lived or cancelled, so I decided to head inside to the newly named Derbion shopping centre. Unfortunately, not much improved as I ventured inside: closed shops, minimal consumers and not one seat to sit down on – for Covid safety reasons, of course.

I was then distraught to see the closing-down signs on the windows of Debenhams, which is one of my favourite shops. As I wandered round the pretty much empty three-storey building, watching people pick at the final items on the rails, I started to reminisce. Many of my Christmas Eves were spent in Debenhams, frantically running around buying ‘every’ present for that year’s Christmas Day. I know, I should have known better, but I always knew that within that shop I could always get everyone a present, and it was always my go-to shop.

I also thought of my mum buying me my school clothes as a kid and me purchasing my first suit as a teenager. It then got me thinking ‘What does the future hold? Not just for the high street, but what about retail in general, and what about car sales?’

I’m sure we’ve all heard and read the expression ‘Nothing lasts forever’ over the years, but what does that mean to us? Now, I’m not saying that high street retail is going to die off completely, at least not anytime soon.

However, the acceptance of online purchasing has continued to grow dramatically, and it doesn’t seem to be slowing at all, and the pandemic may have amplified this growth somewhat. We need to remember those who haven’t adapted to digital transformation quick enough, have lost significantly throughout, and that this isn’t a new thing or pandemic-only situation – remember Blockbuster?

There are scenarios where digital transformation may not happen – for instance, high-end fashion. If you look at Chanel you cannot buy its clothing range online, it must be bought in a boutique. Will it need to change? Who knows!

While it may not seem that important or relative at this moment, by looking at the empty buildings everywhere and the closure of some of our longest-standing retail outlets, it should definitely be a time for long-term thinking. What is your business plan for the next five, 10 or 15 years?

Selling and buying behaviours have already shifted somewhat, and companies are already trying new practices and logistical processes across our market, which has been great to see. Let’s keep it up and keep thinking long term.

I was distraught to see the closingdown signs on the windows of Debenhams.

just a phone call away.

CarDealerMag.co.uk | 55

DATA FILE

STATISTICS

SMMT

SALES DATA

THE LATEST REGISTRATION FIGURES

APRIL/YEAR TO DATE

TOP

FORECAST REVISED

‘Light at end of the tunnel’ in spite of 13 per cent drop

THE CARS SOLD IN APRIL 2021

by James Batchelor james.batchelor@blackballmedia.co.uk

N

ew car registrations were down nearly 13 per cent last month compared with a prepandemic April average, new figures show.

A total of 141,583 units were registered, according to data released by the SMMT on May 5 – 12.9 per cent lower than the average seen between 2010 and 2019.

Last month’s figures were more than 30 times the number for April 2020 when just 4,321 cars were registered, but the comparison is skewed by showrooms being shut because of the lockdown restrictions a year ago.

Retail demand saw the most significant recovery, said the SMMT, rising from just 871 registrations last April to 61,935. However, April 2021’s consumer registrations were still down 14.5 per cent on the 10-year average.

Total plug-in vehicle market share broadly followed the trend seen in recent months, accounting for just over one in eight vehicles, or 13.2 per cent.

Unusually, plug-in hybrids (PHEVs), at 6.8 per cent of the market, were more popular than battery-electric vehicles (BEVs) at 6.5 per cent, following cuts to the plug-in car grant.

Overall registrations for 2021 now stand at 567,108 units – some 32.5 per cent down on the average recorded over the past decade.

However, the SMMT said the full impact of showrooms reopening had ‘yet to be realised’.

The organisation also said it had revised its forecast for 2021 up from 1.83m to 1.86m.

Mike Hawes, SMMT chief executive, said: ‘After one of the darkest years in automotive history, there is light at the end of the tunnel.

‘A full recovery for the sector is still some way off, but with showrooms open and consumers able to test-drive the latest, cleanest models, the industry can begin to rebuild.

‘Market confidence is improving, and we now expect to finish the year in a slightly better position than anticipated in February, largely thanks to the more upbeat business and consumer confidence created by the successful vaccine rollout.

‘That confidence should also translate into another record year for electric vehicles.’

Model

Regs

Vauxhall Corsa

3,968

Mercedes-Benz A-Class

3,270

Ford Fiesta

3,261

Ford Puma

3,036

Volkswagen Golf

2,902

Ford Focus

2,756

Audi A3

2,665

Kia Sportage

2,570

Volkswagen Polo

2,562

Ford Kuga

2,432

Chart topper Vauxhall Corsa extends lead as 2021’s best-selling car THE Vauxhall Corsa topped April’s chart of best-selling cars.

A total of 3,968 Corsas were registered, data published by the SMMT shows.

It was nearly 700 clear of the secondplaced Mercedes-Benz A-Class – a rare appearance in the top two for the German

premium hatchback. The A-Class pushed the Fiesta into third place, with the perennial supermini at 3,261.

The Tesla Model 3, which was fourth in March’s figures, wasn’t to be seen in the chart. Instead, fourth place went to the Ford Puma, with 3,036 registrations.

The Corsa’s strong performance means it’s strengthened its grip on the year-to-date best-sellers chart with 16,381 registrations – comfortably ahead of the Ford Fiesta at 14,906. The A-Class sits in third place with 13,439, followed by the Nissan Qashqai (12,832) and Volkswagen Golf (10,798).

Click here to see our top 10 rolling sales chart for April 2020 to April 2021 56 | CarDealerMag.co.uk

Best April ever LCV news: p58

+482%

+32k%

ALFA ROMEO

HONDA

Figures supplied by SMMT

April 2021 Marque

Abarth Alfa Romeo Alpine Audi Bentley

2021

April 2020

% market share

2020

Year-to-date

% market share

% change

2021

% market share

2020

% market share

% change

159

0.11

18

0.42

783.33

700

0.12

646

0.13

8.36

99

0.07

17

0.39

482.35

415

0.07

661

0.14

-37.22

16

0.01

1

0.02

1,500.00

58

0.01

38

0.01

52.63

11,154

7.88

136

3.15

8,101.47

40,557

7.15

30,805

6.31

31.66

118

0.08

4

0.09

2,850.00

424

0.07

395

0.08

7.34

BMW

8,757

6.19

211

4.88

4,050.24

40,701

7.18

34,473

7.07

18.07

Citroen

2,641

1.87

56

1.30

4,616.07

11,246

1.98

9,208

1.89

22.13

Cupra

528

0.37

0

0.00

0.00

1,452

0.26

0

0.00

0.00

Dacia

1,136

0.80

16

0.37

7,000.00

4,412

0.78

5,071

1.04

-13.00

DS Fiat Ford

47

0.03

1

0.02

4,600.00

462

0.08

718

0.15

-35.65

1,271

0.90

68

1.57

1,769.12

4,484

0.79

6,234

1.28

-28.07

12,959

9.15

306

7.08

4,134.97

49,031

8.65

44,141

9.05

11.08

Honda

2,231

1.58

7

0.16

31,771.43

6,751

1.19

9,627

1.97

-29.87

Hyundai

3,958

2.80

64

1.48

6,084.38

17,380

3.06

13,817

2.83

25.79

Jaguar

1,993

1.41

396

9.16

403.28

7,121

1.26

8,363

1.71

-14.85

264

0.19

7

0.16

3,671.43

1,116

0.20

1,013

0.21

10.17

Jeep Kia

7,529

5.32

156

3.61

4,726.28

27,894

4.92

22,451

4.60

24.24

Land Rover

6,374

4.50

79

1.83

7,968.35

26,925

4.75

20,154

4.13

33.60

975

0.69

6

0.14

16,150.00

4,368

0.77

4,476

0.92

-2.41

53

0.04

1

0.02

5,200.00

210

0.04

179

0.04

17.32

Mazda

2,243

1.58

11

0.25

20,290.91

7,545

1.33

7,177

1.47

5.13

Mercedes-Benz

8,668

6.12

256

5.92

3,285.94

40,368

7.12

34,112

6.99

18.34

MG

2,146

1.52

45

1.04

4,668.89

8,307

1.46

5,510

1.13

50.76

MINI

3,116

2.20

38

0.88

8,100.00

13,910

2.45

13,036

2.67

6.70

716

0.51

34

0.79

2,005.88

2,544

0.45

3,868

0.79

-34.23

Nissan

5,036

3.56

106

2.45

4,650.94

26,122

4.61

23,669

4.85

10.36

Peugeot

6,756

4.77

189

4.37

3,474.60

22,461

3.96

15,242

3.12

47.36

Polestar

318

0.22

0

0.00

0.00

1,240

0.22

0

0.00

0.00

Porsche

1,212

0.86

27

0.62

4,388.89

4,143

0.73

2,782

0.57

48.92

Renault

2,361

1.67

44

1.02

5,265.91

10,427

1.84

9,952

2.04

4.77

Seat

4,144

2.93

165

3.82

2,411.52

15,604

2.75

15,834

3.25

-1.45

Skoda

5,834

4.12

177

4.10

3,196.05

20,076

3.54

17,507

3.59

14.67

Smart

127

0.09

22

0.51

477.27

534

0.09

270

0.06

97.78

SsangYong

105

0.07

45

1.04

133.33

344

0.06

480

0.10

-28.33

Subaru

128

0.09

1

0.02

12,700.00

438

0.08

254

0.05

72.44

Suzuki

1,315

0.93

5

0.12

26,200.00

5,218

0.92

6,282

1.29

-16.94

Toyota

7,892

5.57

19

0.44

41,436.84

31,675

5.59

27,025

5.54

17.21 23.71

Lexus Maserati

Mitsubishi

Vauxhall Volkswagen Volvo

8,972

6.34

479

11.09

1,773.07

33,798

5.96

27,320

5.60

13,323

9.41

210

4.86

6,244.29

49,542

8.74

45,305

9.29

9.35

4,321

3.05

52

1.20

8,209.62

18,285

3.22

12,157

2.49

50.41

Other British

214

0.15

24

0.56

791.67

822

0.14

671

0.14

22.50

Other imports

374

0.26

822

19.02

-54.50

7,998

1.41

6,955

1.43

15.00

141,583

100

4,321

100

3,176.63

567,108

100

487,878

100

16.24

Total

CarDealerMag.co.uk | 57

DATA FILE

RETURN TO 2019

LCV NEWS

Outlook for sector is much brighter, says SMMT

by John Bowman john@blackballmedia.co.uk The LCV market had its busiest April ever, according to latest figures from the SMMT. A total of 30,440 new vans were registered, and Mike Hawes, CEO of the trade body, welcomed the news. All the segments saw artificially inflated growth rates versus April 2020, when Covid restrictions were first imposed and shut down much of the economy, with an eightfold increase in total units. A total of 127,796 vans have been registered so far in 2021, returning uptake to levels last seen in 2019.

Hawes said: ‘With a fragile supply chain still subject to the risk of disruption and ongoing Covid restrictions, there is some way to go before we can say business is back to normal, but after a very difficult year the outlook is much brighter.’

REGISTRATIONS OF NEW COMMERCIAL VEHICLES LESS THAN 3.5 TONNES Marque

Ford Volkswagen Vauxhall Mercedes Citroen Peugeot Nissan Toyota Renault Fiat Land Rover Isuzu Iveco MAN Mitsubishi Renault Trucks Maxus Isuzu Trucks SsangYong Fuso LEVC LDV Total light CV

Figures supplied by SMMT

April 2021

2021

9,968 3,160 2,859

% market share 32.75 10.38 9.39

2,621 2,388 2,327 1,359 1,194 1,130 934 520 451 414 306 298 169 169 63 55 24 16 15 30,440

April 2020

2020

390 155 416

% market share 11.51 4.58 12.28

8.61

1,018

7.84 7.64 4.46 3.92 3.71 3.07 1.71 1.48 1.36 1.01 0.98 0.56 0.56 0.21 0.18 0.08 0.05 0.05 100.00

224 368 200 7 93 102 5 142 115 24 46 32 0 23 1 3 0 23 3,387

% change

2021

Year-to-date

2,455.90 1,938.71 587.26

43,904 12,889 12,521

% market share 34.35 10.09 9.80

30.06

157.47

10,356

6.61 10.87 5.90 0.21 2.75 3.01 0.15 4.19 3.40 0.71 1.36 0.94 0.00 0.68 0.03 0.09 0.00 0.68 100.00

966.07 532.34 579.50 16,957.14 1,115.05 815.69 10,300.00 217.61 260.00 1,175.00 547.83 428.13 0.00 173.91 5,400.00 700.00 0.00 -34.78 798.73

9,168 10,670 5,287 5,450 5,720 3,099 1,276 1,038 1,233 1,169 2,154 792 357 364 152 92 37 68 127,796

2020

22,834 6,962 7,057

% market share 32.03 9.77 9.90

8.10

6,622

9.29

56.39

7.17 8.35 4.14 4.26 4.48 2.42 1.00 0.81 0.96 0.91 1.69 0.62 0.28 0.28 0.12 0.07 0.03 0.05 100.00

5,639 7,274 2,807 2,395 2,476 1,949 379 1,170 848 355 1,496 354 0 278 107 57 0 235 71,294

7.91 10.20 3.94 3.36 3.47 2.73 0.53 1.64 1.19 0.50 2.10 0.50 0.00 0.39 0.15 0.08 0.00 0.33 100.00

62.58 46.69 88.35 127.56 131.02 59.00 236.68 -11.28 45.40 229.30 43.98 123.73 0.00 30.94 42.06 61.40 0.00 -71.06 79.25

REGISTRATIONS OF NEW COMMERCIAL VEHICLES 3.5 TONNES TO 6.0 TONNES Marque

Fiat Mercedes Peugeot Ford Volkswagen Iveco MAN Renault Trucks Citroen Other imports Isuzu Trucks Renault Vauxhall Total heavy CV

April 2021

2021

157 128 91 84 36 29 10 8 2 1 1 1 0 548

58 | CarDealerMag.co.uk

% market share

28.65 23.36 16.61 15.33 6.57 5.29 1.82 1.46 0.36 0.18 0.18 0.18 0.00 100.00

April 2020

2020

44 112 124 7 13 0 0 0 7 0 1 0 0 308

% market share

% change

14.29 36.36 40.26 2.27 4.22 0.00 0.00 0.00 2.27 0.00 0.32 0.00 0.00 100.00

256.82 14.29 -26.61 1,100.00 176.92 0.00 0.00 0.00 -71.43 0.00 0.00 0.00 0.00 77.92

2021

516 492 270 195 113 107 47 47 18 15 7 3 2 1,832

28.17 26.86 14.74 10.64 6.17 5.84 2.57 2.57 0.98 0.82 0.38 0.16 0.11 100.00

92.27 85.13 77.43

Figures supplied by SMMT

Year-to-date

% market share

% change

2020

449 613 461 426 53 44 24 0 84 10 2 2 3 2,171

% market share

% change

20.68 28.24 21.23 19.62 2.44 2.03 1.11 0.00 3.87 0.46 0.09 0.09 0.14 100.00

14.92 -19.74 -41.43 -54.23 113.21 143.18 95.83 0.00 -78.57 50.00 250.00 50.00 -33.33 -15.61

CarDealerMag.co.uk | 59

DATA FILE

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W: realworldanalytics.com T: 0808 1890 617 E: auto@realworldanalytics.com Info: We are a SaaS-based data analytics solution provider for multisite dealers. Our business intelligence tools help customers make faster and better decisions.

W: blue.co.uk T: 020 3005 9331 E: dealersupport@blue.co.uk Info: Blue is transforming the car finance market, making car ownership simple and flexible and providing motor traders with access to essential finance.

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.

W: keytracker.com T: 0121 559 9000 E: sales@keytracker.com Info: Established in 1996 and based in the UK, Keytracker Ltd provide an extensive range of key and asset management systems for a wide range of businesses.

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.

W: warrantywise.co.uk/dealer T: 0800 001 4551 E: dealers@warrantywise.co.uk Info: Warrantywise sells over 100,000 warranties per year.

Quentin Willson personally designed Warrantywise to be the UK’s best used car warranty.

W: wmsgroup.co.uk T: 01844 293810 E: sales@wmsgroup.co.uk Info: Open 24/7, we offer award-winning warranty products for FCA- and non-FCA-registered dealerships.

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.

W: traka-automotive.com T: 0333 355 3726 E: automotive@traka.com Info: Bespoke software and electronic key management cabinets to deliver the most effective solution to dealerships to manage their keys and vehicles.

Finance

Lead Management

Recruitment

Warranty Providers

Website Design & Digital Marketing

First Response

GardX AD-Vantage

WeRecruit Auto

Händler Protect

Haswent

W: firstresponsefinance.co.uk T: 0115 946 6317 E: marketing@frfl.co.uk Info: First Response is an awardwinning UK finance company providing simple financial solutions.

Get in touch and let us help increase your profits.

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

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.

W: haswent.com T: 020 3920 6164 E: hello@haswent.com Info: Composer is a next-gen automotive platform. You have extensive stock management options, and you’ll gain a brilliantly responsive new website.

To have your details included email sales@blackballmedia.co.uk and ask for Suppliers Guide listings 60 | CarDealerMag.co.uk

LONG-TERMERS

VOLVO XC40 THE KNOWLEDGE

Volvo XC40 Recharge T5 Plug-in Hybrid

Is a plug-in hybrid a good stepping stone to an EV? Ted Welford aims to find out.

T

he year 2030 is when you’ll no longer be able to pop into a showroom, pick up a new petrol or diesel car and be on your way. No, from this date, you’ll be either choosing a plug-in hybrid (set to be phased out five years later) or a pure-electric car.

And although that date might seem quite a while away, nine years is a pretty short space of time when you come to think of it.

Keen to find out how ready we are for this brave new world, I’m going to be spending the next six or so months with this – a Volvo XC40 Recharge T5 plug-in hybrid. These types of vehicles are often considered a ‘stepping stone’ to EVs. The XC40 is the Swedish manufacturer’s most affordable model, carrying over many of the cues of the firm’s larger cars (the smart upright grille and ‘Thor’s Hammer’ headlights being two main highlights) and wrapping them in a more compact package. They’re selling like hot cakes, too. So far in 2021, it’s the UK’s sixth most popular new car, outselling models such as the Volkswagen Golf and Ford Focus.

It’s available with a wide range of powertrains, including petrol, mild-hybrid petrols, an EV and also a choice of plug-in hybrids. ‘My’ car is the T5 Plug-in Hybrid, which is the more powerful of the hybrids, combining a three-cylinder 1.5-litre petrol engine with an electric motor for a combined 258bhp.

There’s also a 10.7kWh battery, which claims to allow for a 28-mile electric range – a figure I’m keen to see if I can get close to, as PHEVs are known for overestimating this. Volvo also says you could see up to 134.5mpg, but again, I’m taking that with a pinch of salt.

Although you can pick up a standard XC40 for under £26,000, this T5 plug-in hybrid sits at the pricier end of the spectrum, costing from £42,530. ‘From’ being the key word here, as my optioned-up test car is specced up to a frankly ludicrous £49,125. It’s worth remembering the XC40 is the same size as a Qashqai...

I didn’t actually get a choice of specs, but although I was a bit dubious about Crystal White (£750), seeing it for the first time in the sun and realising it was a pearl colour rather than a flat white, it certainly appealed. It’s also been brilliant at hiding all the dust, given there hasn’t been a drop of rain since I collected it nearly a month ago! The 20-inch diamond-cut alloy wheels (again, another £750) also look the part.

After this, there are a range of bundled option packs, including Driver Assist (a steep £1,550), which brings adaptive cruise control and blind spot monitoring, while the Lounger pack (another £1,750) features park assist, a 360-degree camera plus electric sunroof.

I also can’t forget the interior, arguably the boldest thing here. While most XC40s you’ll see will have a plain black interior, that’s not the case here, with KM70 XKO having a strange cream-orange colour. It’s called Amber, and – I’ll be honest – when I first saw it, it reminded me of a cream leather interior that’s been driven by a chain-smoker. Sorry Volvo, I don’t imagine that’s the look you were going for... That said, even in a short space of time it’s really grown on me, and anyone who’s had a nosey at it has loved it.

So far, I’m adjusting to plugging the car in at every available opportunity and enjoying the XC40’s strong comfort and refinement, especially when running solely on battery power. But will it be smiles all round for the next six months? Time will tell...

Price (as tested): £49,125 Engine: 1.5-litre petrol-electric hybrid Power: 258bhp Torque: 425Nm 0-60mph: 7.0 seconds Max speed: 112mph Emissions: 47-57g/km CO2 Fuel economy: 117.7-134.5 mpg Mileage: 1,811

This month’s highlight: The Crystal White paintwork hiding all the dust that’s collected, courtesy of the lack of rain!

OTHER CARS WE’RE DRIVING

Nissan Juke N-Connecta Mileage: 6,195 We took the Juke on a Covidcompliant 300-mile round trip – and it didn’t disappoint.

Audi S4 Avant Mileage: 2,141

With restrictions easing, the S4 finally gets to show off its long-distance abilities.

CarDealerMag.co.uk | 61

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