Car Dealer Magazine: Issue 102 by Blackball Media

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Issue 102 | September 2016 | CarDealerMag.co.uk | £3.50

INSIDE: YOUR ESSENTIAL GUIDE TO THE TOP DEALER MANAGEMENT SYSTEMS

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IGNITION.

EDITORIAL PRODUCTION EDITOR Dave Brown

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HEAD OF DESIGN Graeme Windell

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FEATURES EDITOR Sophie Williamson-Stothert

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SENIOR STAFF WRITER Andrew Evans

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STAFF WRITER Jack Evans

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JUNIOR STAFF WRITER Laura Thomson

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ADVERTISING SALES MANAGER Jon Hickey

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ACCOUNT MANAGER Michelle Searle

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SUITS CEO, BAIZE GROUP James Baggott james@thebaize.com Twitter: @CarDealerEd

MANAGING DIRECTOR BLACKBALL MEDIA Andy Entwistle andy@blackballmedia.co.uk Twitter: @CarDealerAndy Contributors Tim Naylor, Nick King, Nigel Swan, Jon Reay, Jonny Fleetwood, John Bowman, Ben Garside, Big Mike, Becca Chaplin, Jack Evans, Jack Healy, Chris Jervis, Darren Cassey.

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always a great occasion WELCOME. IT’S – and I think part of the reason the Car Dealer team enjoy it so much is that it’s a chance to welcome leading figures from the automotive industry to our neck of the woods on the South Coast – or perhaps that should be ‘stretch of the shore’. I’m talking of course about Car Dealer Power, which this year assumed its normal position in the calendar at the end of July, rather than the earlier April date that we picked for our 2015 awards evening. Once again, held at its usual venue, the Spinnaker Tower in Portsmouth, it was very memorable. In terms of sheer size, it’s been eclipsed by the Used Car Awards, but Car Dealer Power will always be special to us – and we devote as much time and effort to it as ever. It’s great to see that it’s equally special to the winning businesses and manufacturers who are delighted to pick up trophies. After all, what could be better for suppliers than to win a gong that has been awarded because so many of your own customers think you’re good at what you do? And what could be better for manufacturers than receiving praise from dealers for either launching fantastic cars to sell or being great people to do business with? It really is a night of celebration. But away from the event itself, and the bottles of bubbly and selfies for Twitter, some manufacturers will be concerned when they turn to the results of our survey that occupy p45-55 of this magazine. It’s an inescapable fact that some brands don’t seem to be particularly well-regarded by their dealers and clearly have work to do, especially as we could be heading into uncertain economic waters post-Brexit. As ever, it all makes for fascinating reading, so put the kettle on, open the Hobnobs and check out the results for yourself. And if you didn’t vote this year, look out for the survey in 2017 – as I say, it’s an annual feature of the magazine and we know from previous years that manufacturers take it VERY seriously.

THIS edition of the magazine marks (I think) a first for Car Dealer. We’ve put a motorbike on the cover! The reason for that is that we’ve got a bit of a Honda special going on from p70, which I’m sure you’ll enjoy getting stuck into. There’s a lot happening with the brand at the moment so we explore a few areas of interest as it approaches its 70th anniversary. Of course, Honda is a manufacturer as well known for its motorbikes as its cars and we talk to Philip Crossman, managing director of Honda UK, and Nick Campolucci, head of UK motorcycles, to find out just how different the Japanese manufacturer’s divisions are. There are interesting points to be made about the importance of getting the right people in should dealers specialising in Honda’s four-wheeled vehicles want to venture into the two-wheeled side of things. There’s a very special twin test (as seen on this month’s cover) between a Fireblade and a Civic Type R – and that’s not all because Jack Evans gets under the skin of the new NSX, the manufacturer’s fresh-out-of-the box supercar designed to take the fight to the likes of Audi and Porsche. Another great read from our team of talented writers that I’m sure you’ll enjoy. THE boss has been out and about for this issue too. James travelled to Japan to get the latest news on the autonomous systems being developed by the manufacturer Nissan. Topof-the-range Qashqais could be equipped with it from as early as next year, he discovered – whilst also reflecting on the fact that recent crashes involving Tesla cars undoubtedly represent a major setback for the technology. Read his reports from p20 – and enjoy the rest of the issue, too.

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INSIDE. ISSUE 102 I SEPTEMBER 2016

Dashboard

06 10 14 20 26 31 33 60 65

Feedback Bugatti dealership interview

Trade Plates TV Nissan special report Around the UK A swanky new London home for ‘the most exclusive car brand in the world’

Around the world Car Dealer Power Finance Big Mike

Forecourt

Honda’s NSX is driven by our expert tester

Start of a six-page section on the top Dealer Management Systems

111

‘‘

Why is Jack Evans taking it steady in our new long-termer?

I saw my grand’s worth of margin almost halved because of the simplest of faults…

Renault Clio Kia Niro

Features Honda special 100 Days of Trading Up BCA celebrates 70th anniversary

65 Data File

Big Mike

Car Dealer Club The Statistics Taking Stock Auctions Market Insight

66 68 69

Hyundai Ioniq

Suppliers’ Guide Key Notes with Traka Hot Property Long-termers BCA celebrates 70 years – and looks back on a car with a 0connection to the Great Train Robbery of 1963

James Baggott

70 79 80

94 96 99 100 103 106 108 110 111 114

OUR EVENTS... As voted for by dealers, the Car Dealer Power Awards are unique. This year’s ceremony took place on July 28 and full coverage starts on page 33.

The Car Dealer Used Car Awards, sponsored by Black Horse, celebrate the used car industry. To get involved in this year’s event, call 023 9252 2434.

If you missed it, you missed out! CDX16 took place on May 24 – and we’re already making plans for next year’s event. We’ve set the date! It will take place on May 23, 2017. CarDealerMag.co.uk | 05

FEEDBACK. Your comments via email to dave@blackballmedia.co.uk

Our website at CarDealerMag.co.uk

Private seller had a real I AM in need of some advice. My business hasn’t been performing as well as I would like over the past 12 months, and I know exactly why. I don’t have much trouble selling cars, the problem is sourcing them. After much thinking, drinking and head-scratching, I have decided to ditch the block and buy private. There are plenty of bargains around and I have the time to source them and view them so I figure it’s worth a try. The only thing that puts me off is that I’ve only ever purchased from a private seller once. I had a customer who wanted a specific car which I found on Auto Trader at a very good price. I was open and honest, very polite, didn’t try finding a million faults to get the price down (because I’m a nice guy), but all I got in return was attitude. Do any of you source privately? How do you deal with sellers? Are you open and honest? Or do you say: ‘It’s for my brother’? JKG

just walk away. You’re clearly not alone with your business not doing as well as you would like. I also over-prep cars but then my comeback rate is very low. I have had some mega-bargains over the years from local people, but nowhere near enough to keep the yard full of stock. justina3

I am always open and honest. And I can’t be messing around with all the rubbish, they either want to deal with you or don’t. If they don’t, I

I advertise that we buy cars. I’ve had some real bargains doing this. I used to buy privately but it’s a hassle trying to find people’s houses, then

Picture of the month The Car Dealer Power awards night is always a great occasion. And amongst the serious business of handing out the trophies, there’s normally time for a bit of fun, too. Blackball Media managing director Andy Entwistle was the brains behind much of the organisation. After the ceremony, he had a bit of a close encounter with his great mate, Alistair Jeff from CitNOW, the company which picked up the video provider of the year award. Bit too late to enter the judo at the Olympics now though, chaps! Turn to p33 for full Power Awards coverage. finding the car is a tub. At least with auctions you get a condition report and mechanical report so you can see what you’re buying. Tom I used to buy a mixture of auction and private stuff and ironically, what I found was that a lot of the private sellers are unscrupulous – lots of lies, hiding things, a few clocked cars. You’ve got more of a guarantee with the auction stuff. M.J

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attitude problem It’s very sad, but I’ve decided to call it a day Hi fellas. It breaks my heart but I’ve got to close the doors. I guess I’m job-hunting now. So, thanks for all the advice, the banter and the insights. Rosemotors

We all put so much time/effort/money into making a business work and when you reach the point where you have no

A little windswept but excited to be here on the coast! #cdpower @mccoll_richard Rebecca @BexFeeney, right Arriving at #CarDealer #CDPower Awards. Just done the nervous double-check and this event is definitely black tie. @PlanInsurance

Very sorry to hear that buddy! Been good to connect. Keep in touch and I wish you all the very best for the future. Umesh Gutting times we are heading into. I wish you all the very best wherever you end up. justina3

Top tweets from Car Dealer Power

choice but to let it go, it’s gut-wrenching. I’ve been there before more than once and feel your pain. So many good traders seem to be folding at the moment and it’s very disheartening. I wish you all the best and hopefully we’ll see you back up and running in the future. JKG

Well deserved @Dragon2000 – Dealer System of the Year... the obvious choice! #CDpower LawJaw @LawgisticsLegal THANK YOU to our fantastic customers for awarding us as Auction House of the Year @CarDealerMag Power 2016! Manheim Auctions @CarAuctions_UK Wow, we were highly commended in no less than four categories at the #CDPower Awards! Thanks to all who voted for us :) Bluesky Interactive @BlueskyTeam

CarDealerMag.co.uk | 07

DASHBOARD. GLASS’S GUIDE

The presses will roll no more... THE final print edition of Glass’s Guide is rolling off the presses after 83 years of continuous publication interrupted only by the Second World War. The company has announced that the August 2016 issue, the 925th, will be the last. Afterwards, all Glass’s subscribers will access their car valuation information digitally through the Glass’s Guide App, a switchover process that has been under way since 2014.

INVESTMENT

£900k spent on new Kia outlet VANTAGE Motor Group, the fast-growing motor retailer with 26 dealerships across the north and Midlands, has invested a total of £900,000 in building a brand new Kia showroom in Bradford. The showroom is Vantage’s second Kia dealership. It incorporates the manufacturer’s new ‘Red Cube’ design identity, which features strong red cladding, and has an impressive eight-car showroom and 50 display spaces.

PROTECTION

GardX becomes sole supplier AFTER a successful tender process, award-winning GardX Protection has become the sole supplier of paint and fabric protection for Imperial Car Supermarkets. Mike Bell, Imperial Car Supermarkets’ managing director, said: ‘We are very excited to see how our F&I performance increases with the introduction of GardX. ‘We chose GardX as they are an extremely professional and innovative company.’ 08 | CarDealerMag.co.uk

Warranty firm boss live tweets his breakdown woe bit.ly/breakdown102

Salesman delivers first aid after nan’s wrong number Mum, dad and carers are all summoned to the scene after elderly woman takes a tumble by ANDREW EVANS @snavEwerdnA

n enterprising BMW salesman has gone above and beyond the call of duty by delivering first aid to an elderly woman who called his dealership by mistake. According to a Facebook post, Sara Tweedy’s grandmother had a fall at her home in Tyneside one Sunday in July and tried to call her daughter. However, in her haste and confusion, she accidentally phoned through to Stratstone Tyneside BMW. Rather than treating the enquiry as a wrong number, Dang Vuong, the new car sales leader, recognised that the woman needed pretty urgent help. Taking down what details he could, he hopped into his car and went round to help her out. In her post, which currently has more than 29,000 Likes, Tweedy said: ‘The manager got in his car and went straight to her house where he found her on the floor and her bath which was almost ready to overflow. He picked her up and cleaned her mouth which was cut and was able to contact us through her mobile while he stayed with her until my Mam got there.’ Vuong told us: ‘I got her house number and street – I had to Google it for the postcode because she couldn’t remember. I quickly jumped in the car and away I flew.

Dang Vuong – ‘the nicest person you could ever meet’ ‘Thankfully it was only two to three minutes away from where we were. ‘I heard her in the living room – I could just see her feet through the door. I checked with her if she was all right and she tried to get up so I scooped her up and put her on the sofa. I made her a cup of tea – cups of tea make everything better!’ After making sure everything was okay, Vuong contacted Sara through her grandmother’s mobile phone, who sent her mum and dad and carers round a few minutes later. Sara’s grandmother wasn’t seriously injured in the fall, but Vuong’s actions helped in making sure that the situation didn’t get any worse. ‘Hopefully it restores a bit of faith in humanity for everyone out there – not to pass the buck onto anybody else,’ added Vuong. David Guy, head of business at Stratstone Tyneside, said: ‘I’m so

proud of Dang for his selfless act of kindness. He is just the nicest person you could ever meet and I’m proud to say he works for me. He is always doing things for other people so what he has done does not surprise me. ‘It would have been easy for him to have called 999 and just moved on with his day which I believe anyone else would have done, but Dang being Dang jut did what comes naturally to him – helping others.’

“

I’m so proud of Dang for his selfless act of kindness. David Guy, head of business at Stratstone Tyneside

Longer, more comprehensive warranties required FALLING consumer confidence is likely to lead to more used car buyers opting for longer and more comprehensive warranties, says The Warranty Group. Ian Simpson, European managing director of automotive, explained that warranty sales could be countercyclical and that, during the last recession, warranty upgrades had increased.

He said: ‘Consumer confidence has been falling for several months and, following the Brexit decision, took a sudden bump downwards. ‘However, our experience is that at times like these, used car customers are looking for greater protection against unexpected motoring costs. ‘When consumers feel as though there is less flexibility in

their finances, they desire a more comprehensive safety net.’ Simpson said that dealers should ensure that their warranty offering fitted this likely need and was properly integrated into their used car sales process. He added: ‘Making sure that you offer a structured warranty upgrade path is something that you need to have in place.’

CarDealerMag.co.uk | 09

DASHBOARD. DEALERSHIP INTERVIEW

‘We have the most exclusive car brand in the world’ ANDREW EVANS visits a rather special showroom in the heart of central London... and meets a dedicated salesperson with an impressive track record

t’s hard to think of a brand more exclusive and decadent than Bugatti. In the 25 years that have passed since it was reinvigorated by its previous owners as a manufacturer of the fastest cars in the world, the company has averaged a rate of production of just two cars a month, selling to some of the world’s wealthiest and most famous people. Since Volkswagen’s acquisition of Bugatti, there has only been one place in the UK to buy your new Veyron – a roped-off area of the Jack Barclay Bentley showroom in Bruton Street in Mayfair, central London. Bentley may be a prestigious brand in its own right, but in some ways, it hardly seemed fitting for the ultra-fast, supremely powerful £1m ‘super sports car’ to be pushed into a corner of another brand’s showroom. Location notwithstanding, Bugatti’s London outlet – part of the HR Owen group – was always amongst the most successful globally. One of 32 Bugatti dealers in the world, one in every seven Veyrons sold passed through the hands of Anita Krizsan, HR Owen’s Bugatti brand director – 65 of the 450 models produced. Indeed, Krizsan is Bugatti’s best salesperson, selling Veyrons at the rate of around one a month in 2013 – record figures. With a new car launching this year – the 1,500hp Chiron – Krizsan’s success and London’s clear appetite for the brand have prompted a move from both Bugatti and HR Owen to create a new, dedicated showroom for the marque. ‘I believe this brand deserves a standalone dealership,’ Krizsan told us. ‘We have the customers, we have a beautiful future with our new car, so it made sense to offer a private environment.’ And what an environment. It may be a thin sliver of a showroom next door to its old digs – separated only by a pair of frosted glass doors – but it mirrors the essence of the Chiron, which itself acts a centrepiece. ‘A little piece of Molsheim,’ as Dr Stefan Brungs, member of the board of Bugatti for sales, marketing and customer service, notes. Before the showroom was even opened, and 10 | CarDealerMag.co.uk

Anita Krizsan and Dr Stefan Brungs at the launch of the new showroom in fact before the Chiron itself has even been officially launched, 200 models from the 500-car production run have already been ordered – 15 of them right here in the UK. Around half of those orders have been placed by new customers, rather than Veyron owners. Brungs notes: ‘I wouldn’t really call it ‘‘conquest sales’’ as it’s not a competition with other manufacturers or other brands. It’s not either/or – it’s ‘‘I have them both. I have the Bugatti, I have the LaFerrari, I have the P1’’. ‘Our customers have collections of cars. On average they have more than 40 cars in their collections. Our typical customer has a car collection, owns two private jets, they own big yachts and they are art collectors, so there are certain things our customers appreciate.’ They’ll appreciate the showroom, certainly. There are pieces of Bugatti memorabilia here and there – a model of the W16 engine that powers the Chiron, a 1:18 scale Type 57 Atlantic – and even the chairs you’ll sit on to discuss your purchase are straight from the Bugatti Home Collection. Krizsan explains: ‘We don’t have a specific sales process – that is a point that’s very important. But when we take the client to the factory, there is a set programme there which we guide them through once we arrive. ‘It’s important to introduce the different stages – the engineering side, the history and the heritage side, they will have a test drive – but there’s not an overall set process.’ Brungs adds: ‘We have official Bugatti pilots,

professional drivers like Pierre-Henri Raphanel and Andy Wallace who train our dealer partners and also do the test drives with prospective customers, to explain the car and give hints and tips on how to drive it better.’ Does that mean that Krizsan herself has had some time behind the wheel of the Veyron? ‘Yes, I’ve been lucky enough! It’s a very important part of being a Bugatti salesperson. I’m very grateful to have the opportunity to drive these fabulous cars, but it helps when we speak to the customer and talk about our experience – that passion for the car grows more.’ Her passion is self-evident. Selling Bugattis seems to have always been her goal. ‘It was a long journey – a 15-year journey – that started at a Honda dealership,’ she tells us. ‘I wasn’t selling cars as I didn’t speak English at that point. But I always followed the brand – I think when you are a car enthusiast you understand where you want to be and I truly believed that one day I would achieve it. ‘From the first time I saw a Veyron at a show in London I was just mesmerised. When I came to Jack Barclay, then I knew!’ With all the talk of exclusivity, it’s interesting to note that Bugatti chose a video game to reveal

Our man Andrew chats to Anita Krizsan and Dr Stefan Brungs

A beautiful future deserves a private environment – that is the thinking behind the new showroom its newest car to the world. Brungs explains: ‘We have 320 Bugatti owners worldwide, but we have millions of fans who love the brand, from kids to passionate car enthusiasts, but who haven’t driven one – though hopefully they will! ‘So we wanted to do something for those fans, and that was the idea behind the Vision GT.’ Krizsan echoes this sentiment about the importance of the brand’s fans, particularly those like the young lad we encountered before the

event who was excitedly snapping the Veyron Super Sport parked on the street outside. ‘I always approach our fans and invite them in,’ she says. ‘They take really good pictures, they understand the brand, they know the cars and we want to entertain them. ‘They are children, they are car enthusiasts and they are the growing-up generation. We will always allow them to access the brand and the cars. They will always remember the experience

and if we make it special they might become a future customer.’ So what of the future? Bugatti has not had the greatest of recent histories, going out of business in 1962 and 1995, and parent company Volkswagen may be looking to trim some of its most expensive projects in the wake of the emissions scandal – so is it here to stay now? ‘Yes. I think this is our opportunity and also our obligation,’ notes Brungs. ‘We have a wonderful brand in our hands: the most interesting and exclusive car brand in the world. ‘We had the chance to build the Veyron and now to continue the legacy with the Chiron and to position it at the very top – to build the best car in the world – and we intend to continue this story.’ With the new showroom paired to its number one salesperson, we’d say Bugatti has a good chance of being with us for a long while. [CD] CarDealerMag.co.uk | 11

DASHBOARD.

Nissan boss: ‘I’m optimistic about the UK post-Brexit’ Manufacturer’s Sunderland plant means relationship is ‘very important’

he boss of Nissan has said future decisions about the car maker’s Sunderland plant will depend on the outcome of Brexit negotiations. But Carlos Ghosn, right, said he was ‘reasonably optimistic’ that the UK will continue to be a key partner of the European Union. He said ‘most companies’ will be waiting to see what happens before making decisions about investments. Ghosn told the BBC: ‘I don’t think you can talk about any impact before we see the new status of the UK. Sunderland is a plant which is a European plant based in the UK. ‘Most of the production out of Sunderland is exported to Europe. So obviously for us, the relationship which is going to prevail between the UK and Europe is very important.

‘Okay, the UK is out of Europe. Fine. But what’s going to be the new status? So you’re going to see a period where most companies are going to be waiting to see what’s going to be the new status.’ He added: ‘We’re reasonably optimistic that at the end of the day common sense is going to prevail from both sides, and that as many people have said, the UK will

continue to be a big partner of the European community.’ The Japanese manufacturer employs 6,700 people at its Sunderland plant, with another 30,000 in the local supply chain. A spokesman for the North East Chamber of Commerce said: ‘It will be a decision for Nissan to take but what we want to see is action from the government during the Brexit negotiations to ensure the north-east does not lose out as a result of any new arrangements. ‘Nissan is a huge player and we need to see long-term investor confidence in the north-east and to be seen as a desirable location for exporters. What the government can do is help to support business confidence in the region.’ Nissan special reports, p20-23

CITNOW

Broadcasting more than BBC! CitNOW says it is broadcasting more video content every day than the BBC. More than 2,750 franchised dealers are now using CitNOW technology, with the use of personalised video leading to a sharp rise in the amount and quality of video being demanded by consumers. At their peak, CitNOW’s servers upload 21,000 videos – more than 500 hours’ worth – every day and the company is closing in on half a million videos being created using its intuitive app every month. As every CitNOW video is watched more than once, the firm is effectively broadcasting more than 800 hours of video – the equivalent of 33 full-time 24-hour TV channels – every day. By comparison, the BBC runs 27 channels, and not all of them round-the-clock.

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DASHBOARD.

Going to court ‘could be the better option’ Alternative Dispute Resolution was meant to simplify things but it ain’t necessarily so, discovered Rebecca Chaplin in episode 11 of TradePlates Live, which was broadcast last month

lternative Dispute Resolution was introduced to keep cases out of the small claims courts – but it might not be the best option, according to Lawgistics legal adviser Nona Bowkis. She explained: ‘Since the Consumer Rights Act, I’d say the level of actual court cases has gone down, as we’re resolving most of them [before they’ve escalated to that level]. ‘If they don’t get resolved, there is the option to go to ADR (Alternative Dispute Resolution) but we’ve already done everything for our dealers so it’s a bit pointless them going to ADR – and if we haven’t resolved it yet, it will probably be because the consumer is being persistent with their complaint but simply doesn’t have a case.’ According to Lawgistics, there is a lot of confusion when it comes to ADR. Dealers are often led to believe that they must use mediation, but it’s not necessarily the case. However, the firm has found that dealers are being advised to engage in ADR when it’s not a requirement unless their trade organisation enforces it. ‘We got a letter from the Consumer Ombudsman and it actually told a client of ours that they are obliged to respond if the customer wishes to escalate their case to an ADR scheme. That’s sort of suggesting that the dealer has to engage and they don’t,’ she said. Bowkis – who appeared on the show via Skype – explained the procedure if you reach a deadlock with a consumer. ‘You have to tell them you’re at deadlock and you have to tell them about the availability of ADR. You also have to give them the name of an ADR provider,’ she said. ‘So you’re just educating the customer really. But then you say, “But we’re not required to

participate in ADR”, which is a bit misleading and a bit of a strange rule really. But if you’re a member of a trade association and part of your membership agreement is that you have to engage in ADR, then obviously you do.’ She added: ‘I prefer going to court because at least you’re going to get a judge who’ll look at the law. If you go up to an ombudsman or any other sort of ADR provider then who knows what factors someone might take into account?’ Services such as Citizens Advice are giving consumers false expectations when taking legal action against car dealers, she added. As Bowkis previously worked for Citizens Advice, she’s well versed in the way this public service can play into the car-buyer’s hands. She explained: ‘They don’t give advice so much any more, what they give is assisted information. What you’ve got is somebody looking at a screen. They’ll look at that and see the customer is reporting a fault with their car and will tell them they’re entitled to their 30-day right to reject.’

TRADE PLATES TV CHOICES There’s a packed line-up of shows available on Trade Plates TV. To watch live or catch up, head over to tradeplates.tv where you can talk directly to our guests using our chatroom system. Daksh Gupta and Lawgistics The chief executive of Marshall Motor Holdings has had an action-packed time with a 13,000ft parachute jump in aid of BEN (see p16). With that and the acquisition of the Ridgeway Group – one of the largest industry deals ever – there was a lot to talk about. Lawgistics legal adviser Jason Williams also discussed your rights regarding trading standards.

Autovolo and Jim Reid Car classifieds website Autovolo recently launched its revolutionary ‘1,000 Voices’ campaign, whereby customers can join a dealer council and gain a proportion of shares in the business. Jim Reid, director of Jim Reid Vehicle Sales and serial Used Car Award winner, is backing this industry first and joined the discussion in the studio.

Twitter: @tradeplatestv 14 | CarDealerMag.co.uk

Facebook: Trade Plates TV

CYBERSECURITY

Rebecca Chaplin interviews Neil Smith IMPERIAL Car Supermarkets was targeted in a spate of online attacks which made it reassess how it protects its business. That’s what operations director Neil Smith told Rebecca Chaplin on Trade Plates TV. He said that when its website moved ahead of the curve, it became exposed to attacks from fraudsters. ‘We had to combat a fake site, Trade Car Auctions, that went up and scraped [took a copy of] all our stock. It was offering that as repossession stock for about half the retail price,’ he said. ‘We then tried to track that site down – they were taking people’s money. Customers were paying upfront and we were receiving emails from people saying “I’ve just bought this car from another site but you’ve got it on yours – what’s happening?” ’ Smith believed that the company’s photos, which were designed to put the customer at ease, was the reason they were targeted. He said: ‘At the time, our website was leading the pack and our images were great. It was giving the consumer confidence, which is exactly what we want to do, but the fraudsters were piggy-backing on that.’ This wasn’t the only attack, though, and it forced the firm to be more vigilant with its online brand. Smith explained that getting these websites removed was almost impossible and prevention was better than cure in this case. Go to tradeplates.tv and click on episode 12 – broadcast on July 26 – to watch the interview in full and hear Smith’s useful advice on the subject.

Website: tradeplates.tv

The customer isn’t always right – despite being told they are I

t happens from time to time that here at Car Dealer Magazine, we get called upon by consumers to hold you car dealers to account. Don’t ask me why, but for some reason the public seem to trust the press despite the Daily Mail doing its best to convince them otherwise. The other day, I received some information from a ‘wronged’ consumer that left so many questions I just couldn’t leave it alone. Maybe I’ve spent too much time hearing your side of the story or too long listening to Lawgistics’ tales of sales gone bad, but I needed to hear the consumer out on this one. The lengths he’s going to, to take this dealer to court and reclaim the money he believes he’s owed seemed extreme enough to make his story true – as I’m sure many consumers seeing his pleas would agree. However, on closer inspection, some things weren’t adding up, so I got on the phone… I don’t have to tell you the full story; it’s one you’ve all heard before. Boy meets car, boy falls in love with car, boy can’t afford car but buys it anyway with all of his savings and a bank loan. Then of course, when she’s – I mean it’s – taken him for all he’s got, it breaks. I’m not going to name names in this case, but there are a couple of things that stood out to me. Firstly, why was this guy given a bank loan when he openly admitted to me that he had put down all of his money on this car and therefore couldn’t afford to fix it? My main issue, however, was with the actual complaint and how the car owner managed to reach this point. The major issue with this car occurred six months after the sale and sounded to me like oil starvation. Cue handover to my partner in crime when it comes to vaguely work-related tasks, Jon Reay, who looked up the car’s previous MOTs – to find that two months before the sale an advisory explained it had an oil leak. I’m no technical genius but a tenminute phone call followed by a ten-minute internet search gave me a reasonable explanation for the problem. Nonetheless, this customer has been advised by – you guessed it – Citizens Advice that he does have a case. Despite this

Rebecca

possibly being annoying for the dealer, my biggest issue with this situation is the poor customer who has had his time wasted because he heard those magic words from a service they, understandably, trust. He has now begun a crowdfunding page with the aim of generating £750 to take this dealer to court, and has also set up social media channels to generate more support for his cause. There is the chance that this guy, who told me he has no mechanical knowledge, is correct and the dealer sold him a car with a whole host of problems that should have been fixed on day one. If so, hopefully he can forgive me for my comments. However, if he ever reaches the end of his campaign and realises that it’s going nowhere, or is even convinced by lawyers or mechanics that he has no case, I pray that he

Chaplin ‘I know that I’d be THE VIEW FROM BEHIND THE SCENES

looking through rose-tinted glasses if I thought that there were no bad dealers’ turns around to the official body and questions why it gave him this advice in the first place. Why did it feel it was better to waste the time and money of both the consumer and the dealer instead of helping resolve the issue with honest and fair advice? This has all been rumbling on for a YEAR now, by the way. I know that I’d be looking through rose-tinted glasses if I thought that there were no bad dealers out there, but I’d wager that in this case the dealer did everything they should have done. At what point will someone question why these consumer services aren’t really serving the consumer any more and, instead of doing that, are reducing the level of trust between the public and traders who are working within the law?

Who is Rebecca Chaplin? Rebecca is head of editorial video at Blackball Media and presents news programmes and features on its online video channel Trade Plates TV

Go to TradePlates.tv now to see our latest videos CarDealerMag.co.uk | 15

DASHBOARD.

Boss takes plunge in first Industry Leader Challenge The bar is set high, thanks to charity skydive that aims to net £150,000

ne of the industry’s key business leaders swapped the boardroom for the open skies, jumping out of a plane at 13,000 feet to raise funds for BEN – the charity dedicated to supporting those working in the automotive industry. Daksh Gupta, chief executive of Marshall Motor Holdings, conquered his fear of heights to make the jump as the pinnacle of a year of fundraising, in BEN’s first Industry Leader Challenge event. The fundraising total currently stands at £142,000, and Gupta hopes it will reach £150,000 once the final pledges come in. After the tandem jump, which took place at the Hinton Skydive Centre in Brackley on July 22, he said: ‘On the way up I was thinking, “Crikey,

this is really high” and that’s when your stomach goes. I can tell you I definitely wouldn’t do it again. It was amazing, but once is enough!’ And he added: ‘I’m thrilled that we have raised such an impressive amount of money.’ Revealing that following the jump he received the news that his mother had died, he dedicated the skydive to her.

Gupta is the first automotive industry leader to step up to the challenge, in which an individual takes on a personal fundraising target over the course of a year for BEN. They then hand over the baton to another automotive industry leader, who will try to top that amount. Jools Tait, business development director at BEN, said: ‘What a phenomenal achievement! The funds raised will have a hugely positive impact, and will help BEN reach more people in the industry. We are incredibly grateful to everyone who contributed to this challenge.’ BEN has already identified the next leader who will take on a challenge in 2017 and they, plus the final amount raised by Gupta, will be revealed at the annual BEN ball at Grosvenor House in London in December.

RESULTS

Profits for June stay the same THE average UK motor retailer made a profit of more than £42,000 in June, matching the result for the same month last year, according to profitability specialists ASE. Profitability for the first half of the year was on a par with 2015, albeit with a slight fallback in the second quarter. Used car return on investment dropped during June as a result of increased stock holding, reflecting the impact of unsold selfregistered vehicles arriving. ASE chairman Mike Jones said: ‘We will clearly be watching performance carefully over the third quarter to determine the potential Brexit impact and whether this has accelerated the softening in the market that we saw throughout the second quarter.’ Market Insight, p103

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DASHBOARD.

Bangers4BEN: Want to get involved? No time to lose! With less than two months to go till our charity rally, space is running out

ime is ticking away to the start of Bangers4BEN this year, and with only a handful of spaces left on our fabulous charity rally, people really need to get in quick to join the fun. Anyone who’s been on Bangers4BEN before will tell you what a crazy, wacky event it is – and something not to be missed! We’ve got a full-on Ferrari theme this time round, and the aim of the game is to have a fun drive through France and Italy while raising money for BEN, which provides care, support and advice to those in the automotive industry who need help in times of hardship or distress. Once back home, the bangers will be auctioned off at BCA Blackbushe to raise even more much-needed moolah for BEN. B4B15 raised nearly £56,000 for BEN, and it’s so easy to get involved. All you have to do is buy a car for

up to £750, pay the £500 entry fee, decorate your car and choose your fancy dress! Adding to the fun factor, prizes will be awarded for the best fancy dressed car, the best themed car, the best tweet from the event and the overall winner – that’s the one making the most profit at auction. The teams of two will be covering many miles of Europe’s best roads, ending up at Ferrari’s home town of Maranello in Italy, enjoying a personal tour of the Ferrari test track and staying at The Maranello Village – the only Ferrari-themed hotel in the world. We’ll also be visiting the newly

renovated Ferrari Museum, where as well as marvelling at the many exhibits, people can also try their hands – and feet – on the pulsequickening, semiprofessional Formula 1 simulators. It is of course possible that – being bangers – not all the vehicles will make it there and back, but have no fear, as AA support vans will be on hand to ensure that no banger and nobody is left stranded. The dates of the event are Saturday October 8 to Tuesday October 11 and we look forward to seeing you there! Go online to bit.ly/bangers2016 to find out more and book your place.

APPOINTMENT

A role for Ray at Cox Automotive COX Automotive UK has appointed Ray Sommerville as nonexecutive director to help drive business growth across all its brands. Cox Automotive brands include Manheim, Motors.co.uk, NextGear Capital UK, Dealer Auction and Movex. Sommerville was most recently chief executive of Perrys and was honoured with Car Dealer magazine’s ‘Lifetime Achievement’ award in 2013. He said: ‘I’m really looking forward to working with the fantastic brands within the group.’ Michael Buxton, CEO of Cox Automotive UK and Manheim UK, added: ‘I’m delighted that Ray will be working with us and am confident that all of our brands will be able to benefit from the wisdom he brings from his significant industry experience.’

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DASHBOARD. SPECIAL REPORTS FROM OUR MAN IN JAPAN

Tesla crashes ‘won’t deter the roll-out of self-driving cars’ A NISSAN executive has admitted the Tesla autonomous driving crashes have been a major setback for the technology – but he confirmed the manufacturer will still be forging ahead with rolling out its own selfdriving cars. Tesla has been forced to defend its autopilot function following a fatal crash in the US in which an owner died when his Model S hit a tractor trailer at 65mph with the autopilot system engaged. Tesla has said its system is safe ‘when used properly’ but reminded owners that they must be ready to intervene at ‘a moment’s notice’. The timing couldn’t have been worse for Nissan, which launched its own driverless technology in Japan in July. The manufacturer will roll out the tech in the UK on top-of-the-range Qashqais next year. ‘It’s our responsibility to give our customers confidence in the technology,’ said Ponz Pandikuthira, vice-president of product planning. Nissan was also quick to explain its ‘ProPilot’ system – which can drive cars on single-lane highways at up to 62mph autonomously and assist in stop-start traffic – is a ‘driver aid, not self-driving’. ‘Customers will make up their own minds on autonomy and I think we will be surprised by the take-up in the next four years,’ said Pandikuthira. ‘Every time there is a problem, though, the press will react negatively. We want our technology to be ready and for consumers to accept it bit by bit. ‘That’s why we’re introducing it in stages over the next few years.’ In 2018, Nissan’s cars will be able to tackle multi-lane motorways, helping the driver overtake, and then by 2020 it plans to sell fully autonomous cars. But for autonomy to be a total success, Pandikuthira believes car manufacturers will need to be forced to work together to perfect an industry standard. He said cars will need to be able to ‘talk’ to each other, but that’s a step makers have yet to take.

Top-of-the-range Qashqais to feature ‘driver aid’ system from next year 20 | CarDealerMag.co.uk

First Drive: Promising start for James Baggott puts the ProPilot system to the test and finds much to commend it – but he also has some concerns...

have the Nissan steering wheel loosely held between my thumbs and forefingers, my feet are placed either side of the pedals and I’m not really paying attention – yet I’m still making gentle progress around a test track. We’re turning corners, speeding up and slowing down, all without any real input from me, because just seconds into my drive, I clicked a button on the steering wheel labelled ‘Pilot’ and let Nissan’s new autonomous driving technology take over. The system – which Nissan is quick to point out is a ‘driver aid’, not a driverless solution – will be the first to bring this technology to the masses when it debuts on the face-lifted Qashqai SUV next year. It’s designed to make long motorway journeys less stressful and safer by aiding the driver and is the first step in the manufacturer’s road map to fully autonomousdriving cars by 2020. Using a camera mounted behind the rear-view mirror and some clever processing power, ProPilot can take over in stressful traffic jams and keep you moving in a single lane at speeds of up to 62mph. Not only does it take care of braking and acceleration but it steers for you, too – keeping you in the middle of your lane and tackling bends. The system even holds you at a safe distance from the car in front, or happily motors along if the road’s clear. Setting the system in motion is a breeze. Once you’re rolling, you simply hit the steering wheelmounted ‘Pilot’ button to turn it on, and push ‘set’ to choose the speed you want to travel at, much like cruise control. On our test-drive loop, we followed a Leaf travelling at speeds of up to 30mph. Although you have to be touching the wheel

NISSAN will launch autonomous driving technology on its best-selling Qashqai SUV as soon as next year. The system – activated at the push of a button on the steering wheel – will be able to control the car in stop-start traffic and drive it unassisted on single-lane A-roads at speeds of up to 62mph. However, in light of recent tragic accidents with similar technology on Teslas in the US, the Japanese manufacturer has been quick to point

Look – no hands! But don’t do this if you want to stay on the right side of the law... for it to work, our test revealed that just a single finger placed at any point on the wheel was enough for it to carry on working. Take your hands off completely – something you’re not allowed to do by law – and after 20 seconds, warnings start and the system stops unless you put your hands back on the wheel. Grip the wheel and you can feel the automated steering wheel working – it’s like a force-feedback wheel you’d use while playing a driving simulator game. It certainly doesn’t feel natural. In traffic jams, the car automatically comes to a complete stop and gets going again – but only if the stop is for less than three seconds. Engineers told us that this may well be longer by the time it arrives in the UK, to cope with our more sustained jams. It wasn’t all plain sailing, though. On two occasions the car drifted off unnervingly to the left of its lane – not enough to warrant intervention, but enough to worry the driver nonetheless. We asked an engineer why this happened and he had no real answer, but he did say tweaks would be made before it’s rolled

out that its version is a ‘driver aid’ and not ‘selfdriving’. A spokesman for Nissan said: ‘Drivers must have their hands on the wheel at all times while the technology is running and if they take

Nissan’s autonomous tech

“

Setting the system in motion is a breeze. Once you’re rolling, you simply hit the steering-wheelmounted ‘Pilot’ button to turn it on out in Europe. We’ve also got concerns about its maximum speed threshold. At 62mph, it would be too slow to keep up with traffic on motorways, where it’s designed to be used. Hopefully a further tweak that Nissan will make before its introduction to the UK will be to increase this to 70mph.

them off, they will be given a two-stage warning to put them back on.’ Once activated, the ‘ProPilot’ system can keep a car in its lane on a motorway, adjusting the steering automatically and compensating for merging traffic. If there is a car in front, it will follow at a safe distance or alternatively stick to a pre-determined speed in its own lane. The technology is currently being rolled out in Japan on Nissan’s new Serena minivan.

Overall, though, the ProPilot system is impressive. It’ll bring technology that’s usually the preserve of luxury cars to the masses, making its debut on top-spec Qashqais costing less than £30,000. Whether the driving public are ready to accept its capabilities – and its limitations – just yet remains to be seen. James Baggott, p114

However, by 2017, the system will be available on top-spec Qashqais and is likely to be an option on other trim levels, too. Top-spec Qashqais – which start at around £27,000 – account for around 50 per cent of sales of the popular model, and last year, the manufacturer sold 60,812 in the UK. This means more drivers are likely to experience autonomous technology in a Nissan before any other brand.

Commenting on the recent Tesla crashes, Hideyuki Sakamoto, the Nissan executive in charge of the brand’s autonomous technology, said: ‘We don’t have a full understanding on the Tesla system as it’s not ours. However, we will be informing our customers of the constraints of ProPilot clearly. If they’re not holding the steering wheel or paying attention they will be warned – the driver must always be ready to drive the car.’ CarDealerMag.co.uk | 21

DASHBOARD. SPECIAL REPORTS FROM OUR MAN IN JAPAN

Next Nissan GT-R supercar could improve driving THE next Nissan GT-R supercar is likely to feature autonomous driving technology that will help teach you how to drive better and faster. The man behind the company’s vision for automation, vice-president of product planning Ponz Pandikuthira, has promised that self-driving tech has a place in every one of the company’s cars, including its high-performance models. ‘I love cars and driving just as much as you, so I can assure you driverless technology in our most exciting cars will complement the driver, not take away the enjoyment,’ he said in an exclusive interview in Tokyo. ‘Imagine a scenario where your GT-R is showing you how to drive around a test track, showing you the lines to take, assisting with the steering to make you a better, faster driver. That would still be enjoyable and very exciting.’ Nissan will deploy its driverless technology in the UK next year on the topof-the-range Qashqais. As we’ve explained, the brand is rolling out the driver aid in stages – the first will assist with single-lane driving, and stop-start traffic. In 2018, the firm’s cars will be able to tackle multilane motorways, helping the driver overtake, and then by 2020 it will sell fully autonomous cars. The latter date ties in nicely with the next facelift for the GT-R – and Pandikuthira hinted that this may be combined with electrification too. He said: ‘Who knows? When the next GT-R comes along it may have electric power too. That and driverless technology would be very exciting indeed. ‘Nissan has decided to roll out its driverless technology in stages. ‘This will help drivers accept the technology and get used to it – and allow legislation to catch up. ‘We’ll also make sure that all cars in our line-up benefit from the technology – everything from the GT-R to the Micra.’

The Nissan GT-R

22 | CarDealerMag.co.uk

Car Collection: Nissan expert picks

Datsun 210 (1958)

Nissan R390 GT1 (1998)

Most cars in Nissan’s heritage collection are immaculate, so when Shimizu-san points to the Datsun 210 I can’t help ask why there’s a huge dent in the side. ‘It hit a kangaroo,’ he says. ‘But it still managed to win the Australian rally.’ The 1958 model generates just 34bhp from its 1,000cc engine, but Shimizu-san explains it wasn’t the power that helped it win the rally, but its reliability.

This might not be a racing car per se, but without it, the manufacturer would never have been allowed to compete in Le Mans, explained Shimizu-san. In 1998, Le Mans rules dictated that cars must be based on production models so Nissan built just one of these to homologate their racer. The 3.5-litre V8 produced 345bhp and 490Nm of torque. Back then it was sold for around £800k, but these days it’s worth more than £7m.

faves from a priceless line-up HIDDEN away in an unassuming industrial estate in the middle of Tokyo’s sprawling metropolis is one of the most amazing car collections in the world. But if you were expecting a billionaire’s toy box of exotic supercars, look away now – this is far more down to earth, but no less priceless: It’s Nissan’s heritage centre.

The Zama Operation Centre is home to an incredible 450 models that chart Nissan’s rise over the years to become one of the largest car manufacturers in the world. From the Austin Seven-rivalling Datsun of 1933 to the very first GT-R ever made, this collection has the lot – and I was lucky enough to be shown around, writes James Baggott.

What’s more, my tour guide was no freshout-of-university script reader – no, my man was Eiichi Shimizu, a man with 30 years’ experience with Nissan and a former sidekick to the boss of the firm’s performance racing arm, NISMO. I persuaded Shimizu-san to pick five of his favourite Nissan racing cars and tell me why he loves them so much. Here’s what he had to say.

Nissan NP35 (1992)

Skyline R33 (1998)

Fairlady (1970)

Shimizu-san’s choice of the NP35 was for one simple reason: It’s the only Nissan ever to feature a V12 engine. The 3.5-litre pumped out a whopping 620bhp and was capable of nearly 200mph. It competed in a Japan sports car series – one in which Nissan was trying to beat rivals Honda and Toyota. Did it? ‘Of course it did,’ says Shimizu-san with a huge grin on his face. ‘That’s why I love it so much.’

This Nissan GT-R-based touring car is a championship winner. It competed in the home series, the JGTC, and won countless times. With a straight six, twin-turbo charged 2.6-litre engine it produced 540bhp and more than 700Nm of torque. Shimizu-san added: ‘Nissan’s race cars have always had great performance, but have always been cost-effective, too – this car was a definition of that philosophy. I respect it for that.’

Another rally car choice from Shimizu-san, but this one comes with an important story. ‘This car was responsible for the birth of our Z cars,’ he said. Back then, the boss of NISMO wanted to produce the performance 240Z, but it wasn’t until the Fairlady had proven itself by winning the East African Rally that he was allowed to. The win secured the 240Z backing from Nissan top brass and the rest, as they say, is history. [CD]

CarDealerMag.co.uk | 23

DASHBOARD. ADVERTISEMENT FEATURE

Ask Auto Trader

Consumer behaviour has changed dramatically, driven by the accelerating pace of change in digital. We demand instant and transparent information in all our experiences both online and offline, and the opinions of others seriously impacts our decision to purchase or not. In this new monthly feature, we’ll focus on a different area of digital automotive retailing, and answer your questions – to help you make decisions that are best for your business.

Why reviews are good news With Auto Trader having introduced Dealer Reviews, retailers now have the opportunity to request feedback from customers following a sale, based on the service they received. Here, Auto Trader’s Brand Director, Marc Thornborough, answers some common questions from retailers around reviews, why they’re so important and how mixed reviews can actually be a good thing.

Why is it important for me to adopt Dealer Reviews? Retailers should embrace transparency and find ways to build trust - and building up reviews is a really good way of doing this. Consumers are used to seeing reviews for everything they buy, and they expect to be able to find them. If you’re buying something from Amazon, you’ll look at the reviews, and if you’re booking a holiday, the chances are you’ll go to Trip Advisor to read what others thought before paying for your accommodation. When it comes to buying a car, the process of seeking out reviews is no different. In fact, 90% of consumers we researched said that online reviews of the seller are their biggest consideration when buying a car*. Not only do they

24 | CarDealerMag.co.uk

want to understand all the details of the vehicle they’re considering – looking at photos and videos, comparing prices, and understanding their finance options – they also want to know about the experience other car buyers have had in your dealership. This gives them the confidence and assurance that they’ll get a fantastic service if they come to you for their next car.

For example, if you sell a car and soon afterwards the customer has a problem with the clutch, they’re probably not going to give you a five-star review. But if you resolve the issue and respond to the review, it shows how you’re taking customer service seriously and fixing mistakes; you can even ask this customer to give you another review if you feel it’s appropriate.

What do I do if a customer posts something negative?

If you’re getting plenty of good reviews, then the odd bad review won’t do you any harm. In fact, if you respond in the right way, it can help - consumers understand that sometimes things go wrong.

Nobody’s perfect and it’s difficult to please every single customer. This means occasionally you may get a bad review, but it’s how you react that matters. It’s possible to turn around a negative review by responding in a professional way.

And don’t worry, we check all reviews to ensure they are appropriate to be published.

Is this process time consuming? Retailers have a lot going on…

What value is this going to bring to me and my business?

We know that retailers are busy people, which is why we’ve ensured that Dealer Reviews are easy to use.

When consumers are looking for their next car, they do most of their research online, searching for an average of 11 hours – double the time they spend offline**.

When you’ve sold a car, make sure you get the customer’s email address, then log into Dealer Portal and enter the customer’s details to request a review. It genuinely takes less than 30 seconds, and if you embed this into your day-today practices, you’ll be building a bank of reviews before you know it.

Have a question, or a suggestion for next month’s topic? I’d love to hear from you: marc.thornborough@ autotrader.co.uk

Reviews give you the chance to demonstrate trust and transparency during this process, which is what consumers have now come to expect in other sectors. What’s more, we see that consumers spend on average 10% more time on the adverts of retailers who feature reviews**.

What retailers say... Independent retailer Hammond Cars has been collecting reviews for over a year, to great success. General Manager Patrick Burke says: “As a business we want to grow and reviews are a massive part of that. Why wouldn’t we want to be transparent about our business? Why would we not want to see what customers think of us? “We want customers online to have the confidence to buy from us and it’s great to see people turn up on site just because of the reviews they’ve seen.”

Marc’s top tips Aim to request reviews within 72 hours of a sale Request reviews on a Sunday, or after 6pm Always make an effort to reply to all reviews – negative or positive

Find out more about Dealer Reviews: trade.autotrader.co.uk/reviews Auto Trader user interviews, Manchester, January 2015

Internal Auto Trader marketplace research CarDealerMag.co.uk | 25

26 | CarDealerMag.co.uk

CAMBRIDGESHIRE: A salesman has retired after 30 years selling Nissans. John Day, 65, called time on his career after selling thousands of cars at Nissan outlets across East Anglia. The sales executive has spent the past 10 years working at the award-winning JS Holmes Nissan dealership in Wisbech St Mary. But his career with the Japanese brand dates back to 1985. John, who lives in Fakenham, said: ‘My approach has always been the same – I’ve never pressured anyone to buy a car, they choose to buy from me. You sell yourself first and then the rest follows.’

Successful salesman calls it a day

GLASGOW: An impressive new Hyundai showroom near the centre of Glasgow is now open – and has become the manufacturer’s biggest dealership in the UK. The new sales and service centre, which is operated by the Arnold Clark group, covers a combined area of 857 square metres and is located in the East End – known as the ‘creative quarter’ of the city. It displays more than 20 of the latest cars from the Hyundai range over three levels. There are also more than 150 used cars on display and over 50 trained staff on site, across the sales, service and parts functions.

New showroom is Hyundai’s biggest

What has been hitting the headlines on the home front? Here’s a round-up of stories

NORWICH: A new SsangYong dealer has joined the network in Norwich, following the appointment of Desira Group plc. Desira will operate the SsangYong franchise from its dealership at Wroxham Road, where the brand’s five-car range of 4x4s and SUVs will be backed with a five-year, limitless-mileage warranty. Paul Williams, CEO of SsangYong Motor UK, said: ‘We are confident customers will appreciate the cars, their dealer and the brand.’ Stuart Stone, MD at Desira, added: ‘We are delighted to have been appointed to represent SsangYong.’

SsangYong boosts network in East Anglia

NEWCASTLE UPON TYNE: A dealership in Newcastle has scooped an award from a national scheme which helps people with disabilities stay mobile. Vertu Honda Newcastle won the Motability Car Scheme’s quarter one award in recognition of its exemplary work with the scheme’s customers. The accolade is part of a programme of awards launched to recognise and reward excellence across the Motability scheme’s dealer network. The awards programme is designed to reward best practice.

Vertu Honda team are Motability marvels!

ABERDEEN: Specialist Cars Aberdeen is the latest Renault dealership to join the exclusive Renault Sport dealer network, its appointment coming only three months after the dealership opened in the heart of the city. Owned by the John Clark Motor Group (JCMG) and located on Abbotswell Road, the dealership’s inclusion in the recently-established Renault Sport dealer network recognises it to be a dedicated specialist in the sale and maintenance of Renault’s iconic motorsport-bred models. It joins the other 26 nationwide Renault Sport dealerships.

New addition to Renault Sport network

News from around the UK DASHBOARD.

CarDealerMag.co.uk | 27

Interim showroom opens in north London LONDON: Glyn Hopkin, the UK’s largest independent Nissan dealer group, has opened an interim showroom in North London. The short-term facility, which also boasts Nissan’s latest retail concept, precedes the unveiling of a new, state-of-the-art showroom which is due to open in the area later this year. The opening of the showroom in Stamford Hill takes Glyn Hopkin’s Nissan dealership count to 14 sites across the southeast, meaning it is now the largest independent Nissan dealer group in the UK. The interim facility will service local demand until the full site is completed.

Silver anniversary for Mitsubishi outlet

EXETER: A Mitsubishi dealership in Exeter has received an award in recognition of its long service to the brand. Livery Dole, in Trusham Road, Marsh Barton, was honoured for reaching the 25-year landmark as a Mitsubishi dealership in a presentation from Toby Marshall, sales and marketing director at Mitsubishi Motors in the UK. Managing director Hayden Williams said: ‘We are proud of our long-standing relationship with Mitsubishi, so it is an honour to receive this award. The partnership works well because we both believe in providing excellent service to our customers.’

SWANSEA: Panda Motors has formed a new partnership with MG after deciding to bring in a manufacturer they could proudly represent. Anthony Jones, who runs the sales department, said: ‘We were extremely taken with the overall value of the brand and the quality of the vehicles. It’s great to represent a car manufacturer that is so well-known and has such a strong backing – that really bodes well for the future.’ Panda Motors is celebrating its 30th anniversary this summer, so there are two reasons to celebrate!

Panda teams up with MG

CARDIFF: A dealership celebrated its fifth birthday by helping to raise money for its charity of the year. Wessex Garages Hyundai, of Penarth Road, hosted a mini party, providing glasses of bubbly (for non-drivers), party food and cake in aid of Bobath children’s therapy centre. Richard Craythorne, general manager at the dealership, said: ‘We had a great weekend. Lots of people popped in to see us and help us celebrate.’ Sales executive Jake Ruckley sealed the deal with Jemima Kerai on a new i20 during the celebrations, above right.

Five years already, and time to celebrate!

ESSEX: Mack Motor Group has ceased trading, Car Dealer understands. The company operated out of two premises: a Mitsubishi and Mazda site in Gloucester Avenue, Chelmsford, and a Mazda-only showroom in Rayne Road, Braintree. Both outlets have ceased operations. A statement issued by Mazda’s press office said the closure of the business was down to ‘financial complications’. The statement read: ‘Due to financial complications of the Kelhalk t/a Mack Mazda business, it has been necessary for them to cease trading with immediate effect.’

Essex-based group ceases operations

DASHBOARD. PENDRAGON

Healthy increase in profitability PENDRAGON reported a healthy increase in profitability in its interim results, published recently. Underlying profit before tax rose by £3.9m to £44.2m, while like-for-like gross profit in its used car operation increased by 6.2 per cent to £4.7m. Chief executive Trevor Finn said: ‘The business continues to perform strongly as we achieved a near doubling of profitability in three years.’ Market insight, p103

PETER VARDY

New BMWi outlet in Edinburgh PETER Vardy, the Scotlandwide automotive retailer, has launched a new BMWi brand retail outlet in Edinburgh. The new dealership will sell the all-electric BMWi3 model and its sporty big brother, the plug-in hybrid BMWi8. The new BMWi brand offering will have its own display stand at the existing BMW dealership operated by the Peter Vardy site on Seafield Road.

FUEL CHOICE

Buyers ‘turning backs on diesel’ CAR buyers are turning their backs on diesel-powered cars in favour of petrol models, according to research by Whatcar.com. The changing mood among buyers is reflected in the latest What Car? Intelligence Survey results, which indicate that more than seven in 10 people would be likely or very likely to choose a petrol car, compared with the four in 10 who would consider a diesel. The research indicated that the shift from diesel to petrol is more about running costs than the environment. 28 | CarDealerMag.co.uk

Swansway Group makes £6.5m profit for 2015. bit.ly/swansway102

Complaint over TV ad that ‘questions our reputation’ Marketing director of CarShop says 02 is guilty of ‘grossly unfair stereotyping’ by ANDREW EVANS @snavEwerdnA

obile network operator O2 has recently been airing a television advert to extol the virtues of its guaranteed second-hand phone handsets – but it has left some car dealers unhappy. Drawing parallels with a ‘dodgy used car’, the advert depicts a woman who has bought a mobile phone from the internet, making special mention of how unreliable second-hand items can turn out to be despite their attractive price. The woman is shown being woken up by her fractious mobile phone – which is shown as a model of a Ford Focus – along with being embarrassed by its alarm going off in the theatre and pouring a quart of oil out of her handbag. The analogy hasn’t gone down well with Leo Nelson, marketing director of Car Shop – winners of the Used Car Supermarket of the Year prize at the 2015 Used Car Awards – who has submitted a complaint to the Advertising Standards Authority over the implications made regarding used cars in the advert. In his complaint, Nelson notes that: ‘The advert makes reference in the form of an analogy to ‘‘used cars’’ and in doing so suggests that all used car product is poor quality, not checked

A screenshot from the ad by retailers and likely to be sold with faults and therefore, should not be trusted by consumers. ‘A direct comparison is made between used cars and used mobile phones. O2 makes the claim that its used mobile phones are of a superior quality because a series of checks are made prior to retailing the product and while making the claim, they suggest this is not the case when purchasing a used car.’ Near the end of the ad, the exasperated woman sees her purchase roll off a kitchen unit and suffer damage – after the narrator cautions that she won’t be able to get a refund. Nelson’s complaint addresses this too. He added: ‘Used cars, like used mobile phones, are covered by the same English laws relating to the sale of goods (Sale of Goods Act 1974) and consumer rights are protected in an identical way.’ The clearly unimpressed Nelson

continues: ‘It is, therefore, grossly unfair of O2 to stereotype in this way, make false and sweeping statements as well as call into question the reputation of an entire industry.’ When we contacted O2 for a comment regarding its advert, a spokesperson told us: ‘We’ve not been notified by the ASA of a complaint. Our Like New campaign focuses on second-hand items from different markets to help consumers understand the proposition and its benefits.’

“

Campaign focuses on second-hand items from different markets. Spokesman for O2

Wizzle while you work with new trading platform DIGITAL car appraisal specialist AUTOi has launched a new trading platform bringing dealers and consumers together in a bid to disrupt the cash-for-car market. Wizzle is a web service and smartphone application enabling consumers to create vehicle appraisals with a view to selling their cars direct to interested dealers. The platform has launched with

a network of more than 3,500 dealer staff – representing 1,000 motor retailers – monitoring cars uploaded for sale daily by consumers. More than 200 cars were uploaded to the site by consumers in the first week, with the company aiming for 50 fresh uploads per day by the end of August. Built around technology developed by the Bournemouth-based technology business to manage smart

repair insurance claims, Wizzle is the first platform of its kind in an industry that typically relies on buying cars ‘blind’, with verbal, pro-forma and text descriptions only. The upload and listing service is free to consumers, with no subscription cost for dealers, who instead pay a transaction fee on a completed purchase. Focus on Wizzle, p92

CarDealerMag.co.uk | 29

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DASHBOARD.

Around the world Dealer news from somewhere other than here

IRAN

PSA Group and Saipa, Citroën’s historic partner in Iran since 1966, have signed a framework agreement to create a joint venture to produce and sell Citroën vehicles in Iran. This 50/50 arrangement lays the foundations for a strategic partnership between the two companies. It will cover the entire value chain from the design stage right through to vehicle marketing.

AMERICA

A CHAIN of used car dealerships in Snohomish County, Washington State, is to pay $250,000 (£187,000) in compensation after misleading Spanishspeaking customers, according to reports. People were apparently attracted by the promise of certain finance terms explained in Spanish, only to be presented with different, less attractive options when they arrived – written in English.

SOUTH AFRICA

NEW vehicle sales slumped dramatically in July, reflecting the difficult economic conditions in South Africa, according to the AllAfrica website. A total of 44,883 new vehicles were sold, which was a ‘substantial decline of 9,222 vehicles or a fall of 17 per cent compared to July last year,’ according to the National Association of Automobile Manufacturers.

CHINA

BUYING a car in China has become a less satisfying process for customers, with service standards dropping as profitability falls. A recent survey by JD Power & Associates found that the proportion of car buyers who found the sales experience better than expected dropped to 40 per cent, from 64 per cent in 2015. Citroën beat Hyundai to be the top mass-market brand by customer satisfaction, while Audi led luxury nameplates for a fourth straight year, according to JD Power, which first conducted the annual survey in 1999. Nissan and Mazda fell out of the top 10 rankings.

INDIA

THE trade in diesel cars in Delhi has been hit after transport chiefs were told to de-register 10-year-old diesel vehicles to control pollution. The move came as the city’s car dealers were just getting to grips with a ban on 2,000cc diesel vehicles imposed last year. The narrowing price gap between petrol and diesel in India is also reducing the incentive to own oil-burners.

CarDealerMag.co.uk | 31

Are you losing 90% of service bookings? Responsive websites that can help you to pick up those lost bookings. Contact Bluesky Interactive to find out more about the Service Booking form that puts bookings first.

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32 | CarDealerMag.co.uk

SURVEY.

SUPPLIERS ar Dealer Power is the annual automotive survey that keeps going from strength to strength. And, as we’ve said before, its true power comes from YOU – the dealers and the readers of Car Dealer Magazine. For the past seven years we have asked you to name the best manufacturers to represent and the best suppliers with which to do business – and thousands of you have told us. Car Dealer Power really does give us a fascinating insight into what dealers right across the country are thinking. And because the survey

is confidential, you are happy to tell us exactly what you think. This year even more of you than ever filled out the online and paper versions of the survey and it was great that, as usual, you were frank and honest with your views. This is welcome news for the manufacturers and suppliers who win plaudits and praise – but not so good for those falling short and under-delivering. On the following pages we will be recognising the best suppliers in the business – the ones who offer fantastic products and unparalleled service to dealers. And then, from page 45, we

will continue with the manufacturer rankings. Car Dealer Power is genuinely special. The winners are part of an elite club that is doing the job properly as recognised by dealers. The Car Dealer team has no influence or say in who wins these awards – dealers do that. We’ve got the easy job, and that’s handing over the trophies. Winners and highly commended winners were invited to Portsmouth’s stunning Spinnaker Tower to celebrate their achievements on July 28. Over the following pages you’ll find out which companies are doing the best job for their dealer customers.

CarDealerMag.co.uk | 33

SURVEY. Cleaning Product of the Year

Recruitment Agency of the Year

Winner: Autoglym

Winner: Perfect Placement

Highly commended: Autosmart

Highly commended: Autotech Recruit Ltd

Highly commended: GardX

Highly commended: Progress Recruitment Solutions (UK) Ltd James Baggott presents Autoglym’s trophy to Jonathan Earnshaw

Rebecca Chaplin with Dan Unstead, left, and Jimi Matthews from Perfect Placement

THE three finalists in this category were head and shoulders above the other cleaning products nominated – and our winner was definitely worthy of the first trophy to be presented during the evening. With a royal warrant to its name, our winner is a firm that invests countless hours developing its products in state-of-the-art laboratories. Hundreds of raw materials are blended together to make effective, easyto-use products that do exactly what they are supposed to. The company partners with key vehicle manufacturers and racing teams to ensure product compatibility on all existing and emerging automotive finishes. Our winner in this category was Autoglym – with the two highly commended winners named as Autosmart and GardX.

WE ALL know that hiring the right people can make or break a company – and when you’re trying to run a business, finding the time to focus on recruitment can be tough. Our winners know this and that’s why we received comments that they ‘never fail to deliver’, ‘always meet the challenge’ and that ‘they have the resources for any campaign’. Everyone in the organisation shares the same passion, belief and drive; fully realising the importance of maintaining their position as the UK’s leading automotive recruiter by delivering exceptional, uncompromising service and constantly exceeding expectations. Our winner was Perfect Placement – with Autotech Recruit Ltd and Progress Recruitment voted as our two highly commended winners.

Trade-to-Trade Remarketer of the Year

Used Car Valuation Provider of the Year

Winner: Dealer Auction

Winner: cap hpi

Highly commended: Autorola

Highly commended: Auto Trader

Highly commended: Autotrade-mail

Highly commended: Glass’s James Baggott presents the trophy to Kieran TeeBoon from Dealer Auction

FINDING suitable stock for the forecourt is a constant challenge. A car that might be right for one outlet might be totally the wrong choice for another garage half a mile down the road. However, help is available if dealers want to dispose of cars they’re finding difficult to sell, or obtain a particular car to meet the requirements of a customer. Our winner this year received comments from our readers such as ‘there’s nobody out there who comes anywhere near these guys’, ‘superb service’ and importantly, ‘they offer great profit opportunities’. For the third year in a row, our winners were Dealer Auction. Well done also to our highly commended winners Autorola and Autotrade-mail. 34 | CarDealerMag.co.uk

Rebecca Chaplin with Wendy Swaine from cap hpi

ONLY BY knowing a car’s true value can a dealer make the most important decisions affecting the profitability of his or her business – how much to buy for, and how much to sell at. In this category there were some big names, which came as no surprise. But it was interesting to note that our overall winner received more than twice as many votes as its nearest competitor. This year’s winner has graced our stage in the past, and has earned its place this year thanks to extensive data which is carefully quantified and assessed by its editors. Congratulations to… cap hpi. Well-deserved congratulations – and Car Dealer Power certificates – were also given to our highly commended winners, Auto Trader and Glass’s.

Consumer Lead Generation Site of the Year

Dealer Management System of the Year

Winner: carwow

Winner: Dragon2000

Highly commended: Auto Trader

Highly commended: iVendi

Highly commended: Bluesky Interactive

Highly commended: Pinewood James Baggott presents Jag Atwal and John Miele from carwow with their Car Dealer Power trophy

Rebecca Chaplin with Karen McKenzie from Dragon 2000

IN THIS digitally-focused world, no dealer can rely on a steady stream of customers without the help of online lead generation. Leads alone, though, can’t be relied upon – it’s all about quality. That was the recurring theme with the comments in this category – dealers continually reported high-quality leads from our finalists, and one platform in particular stood out. Our audience was asked to put their hands together for the winners carwow, which works with manufacturer-approved dealers who demonstrate they’re serious about providing great car-buying experiences. Our two highly commended winners were Auto Trader and Bluesky Interactive – well done, guys.

DEALERSHIPS large and small have a multitude of factors to worry about and keep track of at all times. Our three finalists all proved that they make a vital difference to the day-to-day running of car dealerships up and down the country. Our winner, however, received extremely high praise from its customers. One happy dealer said getting involved with our winner here ‘was the best move I’ve ever made!’ Congratulations, for the third year in a row, went to… Dragon 2000. And certificates for being highly commended winners were awarded to iVendi and Pinewood. Focus on Dragon2000, p82-83

Website Provider for Franchised Dealers

Website Provider for Independent Dealers

Winner: GForces

Winner: Spidersnet

Highly commended: Autoweb

Highly commended: Auto Trader

Highly commended: Bluesky Interactive

Highly commended: GForces Paul Hilton from GForces collects the firm’s award from James Baggott

THE modern car dealership needs a successful ‘bricks and clicks’ combination to survive and thrive – at least, that’s the perception of many in this wonderful industry of ours. Your dealership can look the absolute bees’ knees but without the right website your brand could be lost in a sea of online searches. This was a hotly-contested category but our top three really stood out from the rest with flattering comments and scores. However, there can only be one winner and this year it was… GForces, one of the leading providers of internet services and software for the automotive industry. Autoweb and Bluesky Interactive were our two highly commended winners in this category – a great achievement by both firms.

The Spidersnet team collect their trophy from Rebecca Chaplin

FOR independent dealers, having the right website is just as important as it is for a franchise dealer. Why? Well, in the competitive independent car dealer market, standing out from rivals is even more crucial. What’s more, a decent online presence provides a great opportunity for smaller dealers to compete with the big boys. Our audience were asked to give it up for Spidersnet, our winner in this keenly-fought category. The company boasts on its own site that it works tirelessly to create stylish, 100 per cent responsive, car dealer websites designed to drive leads. And our survey respondents certainly seemed to agree. Auto Trader and GForces were our highly commended winners in this important category. CarDealerMag.co.uk | 35

SURVEY. Finance Provider of the Year – Sub Prime

Finance Provider of the Year – Prime

Winner: First Response

Winner: Black Horse

Highly commended: Evolution Funding

Highly commended: Santander

Highly commended: Mallard Vehicle Finance

Highly commended: Volkswagen Financial Services Ben Garside and Kim Seal from First Response collect their award from James Baggott

Paul Whitaker from Black Horse with Rebecca Chaplin

FINDING a finance package that suits each and every customer – regardless of their circumstances – can make or break a deal. That’s why sub-prime finance providers are every bit as important to dealers’ bottom lines as the cars they’re financing. Dealers told us this year’s winner is ‘always willing to go the extra mile’, has ‘excellent brand recognition’ and ‘strong customer service’. So it was a big pat on the back for First Response, a well-regarded company that says being the best is not a destination, it is a never-ending journey of continual improvement. Our highly commended winners were Evolution Funding and Mallard Vehicle Finance, who each picked up a well-deserved certificate.

THIS is a category that includes some big beasts of the industry, supporting thousands of dealers and supplying customers with the finance they need to get into the car of their dreams. Our winner received lots of lovely comments in our survey for 2016. Dealers said they provided ‘outstanding service,’ were ‘extremely helpful’ and ‘straightforward in the way they approach things’. It’s also a company that Car Dealer Magazine has received huge support from over the years, so it was a pleasure to hand over this award. Our winner was Black Horse – and congratulations were also due to our highly commended winners, Santander and Volkswagen Financial Services. Well done to all three of you!

Warranty Provider of the Year

Paint Protection Provider of the Year

Winner: The WMS Group

Winner: GardX

Highly commended: AutoProtect

Highly commended: Autoglym

Highly commended: The Warranty Group

Highly commended: Supagard Simon Miller from The WMS Group picks up the award from James Baggott

THE ‘Warranty Provider of the Year’ category always attracts a high number of votes, and this year was no exception. According to the dealers who completed our survey, our winner for 2016 offers a fantastic warranty product, 100 per cent support and will always go the extra mile. The company in question is proud to offer one of the best car warranty portfolios on the market, with extensive customisation options. For the second year in a row, we were pleased to announce that The WMS Group would be taking home our sought-after trophy. Congratulations were also offered to our two highly commended winners AutoProtect and The Warranty Group. Well done everyone. Focus on The WMS Group, p90-91 36 | CarDealerMag.co.uk

Amanda Massey from GardX collects the firm’s trophy from Rebecca Chaplin

WE SAY it every year – but this category is always extremely competitive. Our winner for 2016 works with high-profile dealer groups to provide a product that everyone seems to hold in the highest regard. These days, it does far more than provide paint and interior protection products, although that is probably what it’s best known for. In recent weeks, it has announced partnerships with SsangYong and Imperial Car Supermarkets, showing that it’s a company that doesn’t rest on its laurels. Our audience were asked to put their hands together for our deserving winners GardX – with Autoglym and Supagard also proving popular with survey respondents and named as highly commended winners.

Video Provider of the Year

Provenance Check Provider of the Year

Winner: CitNOW

Winner: cap hpi

Highly commended: AutosOnShow

Highly commended: Auto Trader

Highly commended: Bluesky Interactive

Highly commended: Experian Alistair Jeff and Sarah Sylvester from CitNOW with Rebecca Chaplin

Wendy Swaine from cap hpi collects the trophy from James Baggott

AFTER a delicious dinner it was time to continue with the awards ceremony – and the second part of the evening kicked off with the Video Provider of the Year category. As the presenter of Car Dealer’s online TV channel Trade Plates, Rebecca explained that this is something she’s extremely passionate about. ‘This is a very innovative category and all of our nominees have shown some fantastic form this year,’ she added, saying that our winner has continued to lead from the front and become a truly global player. Rebecca concluded: ‘Please join me in congratulating our video provider of the year: CitNOW!’ Autos On Show and Bluesky Interactive were our two highly commended winners. Well done all.

THIS is an area of running a car dealership that no-one can afford to ignore. Dealers need to be confident that any vehicle they take in partexchange has not been stolen, is not subject to outstanding finance – and has definitely not been written off. Our winner this year is clearly doing something right to keep dealers happy, because they were triumphant for the fourth year in a row. Trusted by motor trade professionals for more than 30 years, dealers can be sure their accurate pricing and technical information is the best there is. Our provenance check provider of the year is cap hpi. Auto Trader and Experian gave it a run for its money, however, being voted highly commended winners for 2016.

Auction House of the Year

Motor Factor of the Year

Winner: Manheim

Winner: Euro Car Parts

Highly commended: BCA

Highly commended: Andrew Page

Highly commended: Eastbourne Car Auctions

Highly commended: GMF Motor Factors Gary Johnson from Manheim receives the award from Rebecca Chaplin

DESPITE the growing desire to bid online these days, many car dealers still love to turn up at an auction house and see the cars drive through the halls before their eyes. Our winner in this category has focused on developing their business in all areas this year, which has been noted by our voters. With a vision to transform the way the world buys, sells and owns vehicles, and a mission to provide world-class products and services that maximise value for their clients, it was congratulations to Manheim, Auction House of the Year. Well done also to BCA and Eastbourne Car Auctions, our two highly commended winners in this category.

Euro Car Parts was the winner in the Motor Factor of the Year category – sadly, it couldn’t make it to our ceremony

OUR winner in this category has more than 200 stores across the UK and stocks an amazing 130,000 products. The company specialises in all the major car parts – brake pads, blades, batteries and bulbs – and all essential car maintenance essentials such as engine oil. There is also an extensive range of interior accessories such as sat-navs, stereos and speakers. Dealers who voted for our winner praised its ‘excellent supply network’ and ‘fast delivery’ – so it was a big ‘well done’ to Euro Car Parts. Although not present on the night, the trophy is on its way to the company. The two highly commended winners in this category were Andrew Page and GMF Motor Factors. Congratulations to you all. CarDealerMag.co.uk | 37

Not just another website company WE’VE HIT THE TREBLE!

WINNER

Website Provider for Independent Car Dealers

WINNER

Website Provider for Independent Car Dealers

WINNER

Website Provider for Independent Car Dealers

In celebration of winning for a third consecutive year at the Car Dealer Power Awards we have a ONE TIME OFFER for the next 3 customers we speak to. These offers don’t come around often and will be gone in a matter of hours.....

50% off

THE FIRST 6 MONTHS SUBSCRIPTION OF YOUR BRAND NEW WEBSITE

Call us on 01273 283458 First come. First served. www.spidersnet.co.uk 38 | CarDealerMag.co.uk

SURVEY. Trade Insurance Provider of the Year

Online Advertising of New Cars

Winner: Plan Insurance

Winner: carwow

Highly commended: Allianz

Highly commended: Auto Trader

Highly commended: Unicom Insurance Services

Highly commended: GForces Grant Georgiades, left, and Daniel Severin collect their award from Rebecca Chaplin

John Miele collects the award from James Baggott on behalf of the carwow team

IT’S another hotly contested category but, despite the overwhelming number of votes, the winner in this category attracted enough votes to put it miles ahead of the competition. Trade insurance is something no dealership can operate without. For 2016, you voted a well-known brand, renowned for its award-winning customer service and products – Plan Insurance – as our winner. With more than 25 years of industry experience, Plan Insurance strives to find the right cover for each of its dealers, tailoring each plan to meet its customers’ direct needs and business processes. Well done also to Allianz and Unicom Insurance Services, our highly commended winners. Focus on Plan Insurance, p88-89

WE received a fantastic responses in this category and the battle for the top three spots was exceptionally close. Our winner, though, has been making waves in the industry and continues to push forward with a new way of selling cars. It offers dealers primed and ready customers straight through the door and takes away the hassle of negotiation. With more than £600m-worth of cars sold via its website, carwow continues to lead the way in modernising the industry, helping to put Britain’s best-rated dealers in front of the consumer. A big congratulations to our highly commended winners Auto Trader and GForces who were also recognised for their contributions.

Online Advertising of Used Cars

Extra Mile Award

Winner: Auto Trader

Winner: Lawgistics

Highly commended: Motors.co.uk Highly commended: eBay Rebecca Feeney from Auto Trader receives the award from Rebecca Chaplin

WE’VE seen a lot of new players come to the market recently, so it’s hardly surprising that we saw a lot new brands put forward here. However, it was clear from our list of finalists that the more established brands are still held in high-regard by dealers. Founded in 1975 and still going strong in 2016, this year’s winner has continued to grow and develop its offering for both dealers and consumers, so we invited Auto Trader to collect an award for the second year in a row, as voted for by you. The audience also put its hands together for our highly commended winners eBay and Motors.co.uk which, too, are long-standing and trustworthy names in the motor trade.

Joel Combes from Lawgistics, with James Baggott

THIS category had no finalists, only one overall and deserving winner – as voted for by our readers who completed this year’s Power survey form. Our winning company continues to go above and beyond the call of duty to serve not only its customers, but also the wider motor industry – always willing to give advice and share valuable knowledge. One comment from a reader said: ‘This company cannot do enough to help you. No car dealer should be without them and every one of their staff is the best you can get.’ A huge congratulations to the number one legal consultancy for the motor trade, Lawgistics, offering not only legal advice but a range of other products to support the industry. The ‘Extra Mile’ award is one in which we don’t award highly commended certificates so again, a big well done to Lawgistics. CarDealerMag.co.uk | 39

40 | CarDealerMag.co.uk

SURVEY. Product Innovation of the Year Winner: GardX C.A.R.S. Plus

Rebecca Chaplin hands the award to Richard Hage from GardX

THERE was certainly a lot of innovation for our voters to choose from in 2016 – but there was a clear winner in this category, where we don’t award any ‘highly commended’ certificates. We all know that anyone who has spent thousands of pounds on a new car will want to keep their vehicle in tip-top condition. Unfortunately, not everyone is as careful around your car as you would be yourself, meaning dings and dents are all too likely in supermarket car parks, for example. Luckily, our winner offers a solution to consumers that will save people’s no-claims bonuses and offer a simple and easy fix. The innovation of the year is Cosmetic Accident Repair Solutions Plus by GardX. One survey respondent said: ‘The GardX Vehicle Protection System offers class-leading protection and I like the fact that it comes with a lifetime guarantee – very reassuring.’

Manufacturer Marketing Initiative of the Year Winner: Kia Motors UK Highly commended: BMW Highly commended: Ford James Baggott presents the award to MD of Kia Motors UK and Ireland Paul Philpott

CAR DEALER POWER RAFFLE THE manufacturer marketing category this year has received a huge number and variety of votes. BMW was nominated for its Vision Next 100 vehicle, Ford for ‘Unlearn’ and Kia for its new Sportage launch. Replacing a model that has transformed your brand is never easy – it’s that all-too-difficult second album. Fortunately, for our winning brand, they got it absolutely spot-on. Loved by customers and dealers alike, the replacement for Kia’s bestselling model has continued to power the carmaker forwards, so Kia took home the award after a VERY successful launch. Very many congratulations to the South Korean brand and our two runners-up, BMW and Ford.

WE are very grateful to those who contributed prizes for us to give away in our annual Car Dealer Power raffle. With all proceeds going towards helping the staff and children at Great Ormond Street Hospital, we raised £400.

Here’s who took home the prizes: n Volvo-branded 8GB Apple iPod Touch, courtesy of Volvo: Sadia Azam, cap hpi. n Two VIP tickets to the BTCC at Rockingham Motor Speedway, courtesy of GardX: Simon Miller, The WMS Group. n Track day at Silverstone, courtesy of Silverstone: Gordon Tulloch, Tootle. CarDealerMag.co.uk | 41

SURVEY.

Car of the Year Winner: Volvo XC90 THE Car of the Year Award went to the Volvo XC90 – adding to what has been labelled the ‘feelgood factor around the dealer network’. Asked if the mid-size luxury SUV was expected to win, David Baddeley, customer service director for Volvo Car UK, said: ‘No. There are a lot of good cars out there and the beauty about this is that it’s voted for by dealers so it’s a really good testament to the quality of the car. ‘Our network is fairly small in the UK so it’s fantastic that they have gone out and voted for the XC90. It’s also a great endorsement of the feeling that is around the Volvo network about the XC90.’ Things are going really well for Volvo at the moment. Baddeley said: ‘We are going to sell 48,000 cars in the UK this year – that’s 50 per cent more than we sold three years ago. ‘It’s not just new product but new thinking and it’s a real testament to everything that’s going on in Volvo. There’s a real, positive, feelgood factor around the dealer network at the moment.’ The highly commended winners were the Kia Sportage and the Vauxhall Astra. 42 | CarDealerMag.co.uk

David Baddeley receives the Car of the Year award from Rebecca Chaplin, head of editorial video at Blackball Media

CarDealerMag.co.uk | 43

Become a vehicle inspections dealer Our independent inspections gives customers confidence in the quality of your vehicles. Improve Trust Improve Profitability Protect your business Deliver more leads, convert more sales

44 | CarDealerMag.co.uk

SURVEY.

MANUFACTURERS he annual Car Dealer Power edition of our magazine is one that manufacturer bosses are always keen to read. It’s their big chance of the year to find out what their dealer networks really think of them – and the results don’t always make particularly easy reading. After all, we give dealers right across the UK the chance to say exactly what they think across a wide variety of categories – and they’re not backwards about coming forwards! There is one key point to make about Car Dealer Power – a manufacturer must have 10 or more responses from its dealers to get a mention

in the pages that follow. That requirement in itself is capable of springing a few surprises. For instance, we can reveal that not one Hyundai dealership filled in our survey form this year, so they don’t make the list. Dacia, too, are excluded as only one of their dealers decided to get involved. If the manufacturer you represent isn’t included, that will be the reason why. But 28 other carmakers do feature, making Car Dealer Power as valuable and relevant as ever. Each survey respondent is asked to give the manufacturer a mark out of 10 in 13 different categories. These include finance, warranty, aftersales, accessibility and ROI. The marks

are then checked, double-checked and audited before the graphs that you see on the following pages are compiled. We also indicate who has moved up the chart since last year, who has gone down, and which are the new entries in the list. We take the utmost care to prepare what is a huge amount of information for publication. We know from previous years how seriously manufacturers take Car Dealer Power! There’s something else that’s abundantly clear too – it all makes for fascinating reading. Checking out which manufacturers have slipped down the ‘league table’ and which ones are on the up provides an enthralling insight into the UK automotive scene.

CarDealerMag.co.uk | 45

SURVEY.

28 Fiat OVERALL SCORE qDOWN 2

40.5%

27 Alfa Romeo OVERALL SCORE pUP 1

43.7%

FOR Alfa Romeo, this year could be considered quite a success. Moving up one position to 27th also lifts it off the bottom of the table but far more important is the dramatic improvement in its scores. As a new entry in 2014 it only scored 20.4 per cent, rising to 28.7 per cent (but still last) in 2015. This year’s 43.7 per cent is the largest improvement in any manufacturer outside the top seven. Last year the manufacturer didn’t get a single score above 45 per cent, but this time eight of the 13 categories rank at 45 per cent or higher. Finance, marketing, internet and bonus structure all rate in the 60s – but the figures for aftersales and stock management are pretty dismal.

SCORES

100

26 Lotus

68 38

8 m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

In te rn et Ne w su c pp ar ly

aw B ar ra en nd e Ac ss ce ss ib ilit y

7 W ar ra nt y Af te rs al es M ar ke tin g

In te rn et Ne w su c pp ar ly

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

0 aw B ar ra en nd e Ac ss ce ss ib ilit y

0 W ar ra nt y Af te rs al es M ar ke tin g

Fi na nc e

44 25

50 40

PERCENTAGE

Fi na nc e

PERCENTAGE

NO-ONE ever likes to be last, but it may be particularly galling for Fiat, which has been overtaken by one of its sister brands in the process. To be fair, Fiat’s overall score hasn’t changed dramatically since last year – and in 2014, not enough dealers responded to get the manufacturer into the results. It’s not all bad, mind – there aren’t any really low numbers in the table below – and dealers gave Fiat an excellent 75 per cent rating for finance. Other indicators outside Car Dealer Power show Fiat needs to pull its socks up. New car registrations are running more than 25 per cent down year-on-year (see p97). Maybe the arrival of the new Qubo MPV will provide a bit of a boost for the network.

25 SsangYong

OVERALL SCORE NEW ENTRY

44.3%

45.1%

OVERALL SCORE NEW ENTRY

IT’S probably not a huge shock to find SsangYong down here in the lower echelons of the survey, as it’s where lower-volume players traditionally lurk. A new entry for 2016, SsangYong is on a little bit of a revival following its first forays in the 1990s and subsequent disappearance. New models like the Tivoli are making an impression, though the brand awareness category is still a little on the low side. In fact the ratings are only truly low in the warranty section and dealers rate SsangYong well for marketing and forward planning. Accessibility and stock management are very highly rated, with the latter reaching an excellent 80 per cent. If its new cars can make further strides, we predict a higher placing in 2017.

SCORES

100

46 | CarDealerMag.co.uk

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

In te rn et Ne w su c pp ar ly

aw B ar ra en nd e Ac ss ce ss ib ilit y

W ar ra nt y Af te rs al es M ar ke tin g

Fi na nc e

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

In te rn et Ne w su c pp ar ly

aw B ar ra en nd e Ac ss ce ss ib ilit y

0 W ar ra nt y Af te rs al es M ar ke tin g

Fi na nc e

50 40

PERCENTAGE

50 40

PERCENTAGE

LOTUS shouldn’t be too disheartened by this low placing on the list. As the lowest volume manufacturer in the survey, making it here at all and being placed above a mainstream carmaker is a pretty creditable effort. In fact if we only took into account the left-hand side of the chart, Lotus would be considerably higher up, posting good scores in finance, warranty, aftersales, marketing, accessibility and internet. The remaining five categories do a bit of damage to Lotus though, with the firm rating particularly poorly in the areas of stock management and forward planning. Given that most of the motor industry doesn’t really know what Lotus is going to do next, it’s no surprise that the dealers don’t either.

SCORES

0-25% 26-50% 51-75% 76-99% 100% POOR

AVERAGE

GOOD

EXCELLENT

FAULTLESS

23 Seat

24 Peugeot OVERALL SCORE pUP 1

45.5%

45.8%

OVERALL SCORE qDOWN 3

LAST year’s results were a bit of a ’mare for Peugeot. The company dropped 11 places to the unwanted location of the first page of the list. It was almost inevitable that there’d be a move back up again, so it’s got to be disappointing that it’s only a single place, particularly when you note that the overall score itself has taken yet another hit. It’s not all doom and gloom, though – finance and accessibility both rate as good. Stock management, manufacturer requirements and the bonus structure all come in well below the brand’s overall score, however. Those final two were an issue last year too, so Peugeot needs to take note lest it finds itself back on page one in 2017.

IT’S been a bit of a topsy-turvy 12 months for Seat, with the company one of the hardest-hit brands in terms of sales following September’s emissions scandal. Its performance on Car Dealer Power has been far more predictable though, with a steady downwards saunter continuing unabated. Our top brand in 2011 has fallen by dribs and drabs, from 11th in 2013 to 23rd this year – and the survey results can’t quite identify what the problem is. Seat’s scoring is fairly consistent, with some numbers firmly in the ‘good’ band. Aftersales, marketing and brand awareness are the lowest points – the latter hopefully improving in the next couple of years with a swathe of new models on the way.

SCORES

100

80 70 PERCENTAGE

55 42

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

In te rn et Ne w su c pp ar ly

Fi na nc e

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

In te rn et Ne w su c pp ar ly

aw B ar ra en nd e Ac ss ce ss ib ilit y

0 W ar ra nt y Af te rs al es M ar ke tin g

0 Fi na nc e

aw B ar ra en nd e Ac ss ce ss ib ilit y

22 Lexus

W ar ra nt y Af te rs al es M ar ke tin g

50 38

50 40

PERCENTAGE

21 Renault

OVERALL SCORE qDOWN 10

45.9%

46.1%

OVERALL SCORE qDOWN 3

FOR a company that has been on the up-and-up in previous Car Dealer Power surveys, Lexus will be disappointed to plummet back to the depths we thought it had recovered from a year ago. Its overall score and position are broadly the same as they were in 2014 and, despite Toyota’s own ignominious fall, of which more later, Lexus has dropped behind its parent company again. Consumer surveys traditionally score the brand exceptionally highly, so it’s not the cars themselves that are the problem, clearly. With middle-of-the-road scores – the figure in every category is between 39 and 53 per cent – it’s hard to pinpoint exactly what is going awry. Definitely a case of ‘could do better’.

OVER the past few years, the Groupe Renault UK dealer network has been investing in a new physical showroom experience for its customers with 132 new ‘Renault Store’ concepts already open across the country, adding a completely new dimension. The customers are no doubt impressed, but the initiative doesn’t seem to have done much to improve the mood of the network, with the French manufacturer posting a distinctly average set of results. Interestingly too, we only had one response from a Dacia dealership this year, which means that Renault’s sub-brand can’t even be included in this list. Perhaps the fact that Renault’s new car registrations are running at 31 per cent down year-on-year is depressing dealers.

SCORES

100

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

52 40

In te rn et Ne w su c pp ar ly

Fi na nc e

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

0 In te rn et Ne w su c pp ar ly

0 aw B ar ra en nd e Ac ss ce ss ib ilit y

aw B ar ra en nd e Ac ss ce ss ib ilit y

W ar ra nt y Af te rs al es M ar ke tin g

50 40

W ar ra nt y Af te rs al es M ar ke tin g

52 40

50 40

PERCENTAGE

Fi na nc e

PERCENTAGE

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SURVEY.

19 Mazda

20 Porsche OVERALL SCORE NEW ENTRY

46.5%

OVERALL SCORE pUP 3

46.6%

OUR highest new entry is Porsche, but it’s a bit of a mixed bag of results. With average and good scores in every category, it could have expected to finish a little higher than 20th overall, but ultimately the lack of any really standout percentages leaves the famous manufacturer languishing in the bottom half of the table. As you might expect, brand awareness is a solid category for this year’s successful defenders of the Le Mans 24 Hours championship – as is marketing – so it’s not as though Porsche requires a fillip from new model lines, but otherwise it’s a fairly anonymous performance. As with some other brands, it could be that declining numbers of new car registrations are spoiling the party.

MAZDA hasn’t had the best of times in recent Car Dealer Power surveys, being placed firmly outside the top 20 in 2014 and 2015, but this year it breaks back in. Nineteenth place might not mean they’ll be breaking open too much Bollinger at their swanky new Dartford HQ, but it’s undeniable that Mazda scored average or good in every category, producing one of the most consistent performances in the entire survey for 2016. The company has a lot to shout about at the moment, with several new and highly-acclaimed models across the board – few more so than the new version of its iconic MX-5 roadster which has been duking it out in various car of the year awards worldwide.

SCORES

100

80 70

18 Toyota

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

In te rn et Ne w su c pp ar ly

aw B ar ra en nd e Ac ss ce ss ib ilit y

In te rn et Ne w su c pp ar ly

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

Fi na nc e

0 aw B ar ra en nd e Ac ss ce ss ib ilit y

0 W ar ra nt y Af te rs al es M ar ke tin g

W ar ra nt y Af te rs al es M ar ke tin g

Fi na nc e

50 40

PERCENTAGE

52 40

50 40

PERCENTAGE

17 Mitsubishi

OVERALL SCORE qDOWN 2

48.4%

OVERALL SCORE qDOWN 2

49.8%

100

50 40

48 | CarDealerMag.co.uk

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

In te rn et Ne w su c pp ar ly

aw B ar ra en nd e Ac ss ce ss ib ilit y

W ar ra nt y Af te rs al es M ar ke tin g

Fi na nc e

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

In te rn et Ne w su c pp ar ly

aw B ar ra en nd e Ac ss ce ss ib ilit y

0 W ar ra nt y Af te rs al es M ar ke tin g

0 Fi na nc e

PERCENTAGE

50 40

PERCENTAGE

SCORES

100

SCORES

WHILE Mitsubishi’s relative position hasn’t changed that much, just about every score in the table below has fallen from last year – most noticeably in the right-hand half of the chart. The manufacturer is perhaps fortunate that there have been similar drops among other carmakers in Car Dealer Power, as last year this score would only have been good enough for 25th place. Aside from a couple of rather disappointing numbers, the brand can feel pleased that it is delivering big-time in the areas of warranty, aftersales and marketing in particular – three crucial categories. Brand awareness and finance aren’t far behind, so there’s quite a bit to be cheerful about at the company’s UK HQ in Gloucestershire.

FROM winning a Car Dealer Power Award in 2013, Toyota seems to have experienced a rather dramatic fall from grace. Like last year, the company is stuck in the mid-table doldrums and the results of our survey show a fairly middling performance across the board. The same strengths and weaknesses apply as they did last year, with marketing and accessibility scoring far more poorly than Toyota’s average. The manufacturer’s ‘requirements’ category has gone from the joint weakest (30 per cent in 2015) to the strongest though, so Toyota is paying some attention to its shortcomings. We’re surprised that the company that makes the poster child for all hybrids and the famously indestructible Hilux scores so poorly.

SCORES

0-25% 26-50% 51-75% 76-99% 100% POOR

AVERAGE

GOOD

EXCELLENT

16 Mini

FAULTLESS

15 Mercedes-Benz

OVERALL SCORE qDOWN 7

52.5%

53.8%

OVERALL SCORE qDOWN 10

MERCEDES-BENZ was also a new entry in 2015, scoring an impressive score of 79.5 per cent to claim fifth place. Sadly, its luck has run out this year, suffering a similar fate to Mini and dropping down the ranking by 10 places to 15th. Last year it scored of 90 per cent for brand awareness and 89 per cent for marketing, which have since plummeted to 43 per cent and 58 per cent respectively. Its aftersales figure of 42 per cent was particularly disappointing after reaching 85 per cent last year, while return on investment was rather low. Mercedes did rename half of its entire range this year, with the SLK becoming the SLC for example, which could have caused a stir among both buyers and dealers.

SCORES

100

14 Land Rover

70 55

63 43

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

In te rn et Ne w su c pp ar ly

Fi na nc e

aw B ar ra en nd e Ac ss ce ss ib ilit y

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n c u M ture s an uf ac tu r RO er I

In te rn et Ne su w c pp ar ly

aw B ar ra en nd e Ac ss ce ss ib ilit y

W ar ra nt y Af te rs al es M ar ke tin g

Fi na nc e

W ar ra nt y Af te rs al es M ar ke tin g

OVERALL SCORE qDOWN 10

50 40 30

PERCENTAGE

55 40

50 40

PERCENTAGE

MINI was a new entry to the Car Dealer Power chart in 2015. Scoring an overall rating of 75.2 per cent, it came in a respectable ninth position – not bad at all for a first-time contender. However, between then and now, Mini has dropped from the top 10 to 16th – roughly midway through the list. Mini didn’t achieve anything higher than 60 per cent in any of the Power categories. Its highest scores were recorded in stock management, accessibility and the internet. Return on investment, meanwhile, plummeted from an impressive 80 per cent to 25 per cent – so what went wrong there? For Mini, a trend-setter in marketing and building brand awareness, a score of 57 per cent was quite a shock, too.

13 BMW

56.4%

57.1%

OVERALL SCORE qDOWN 3

BMW looks to have fallen behind a little this year. It did climb six places to 10th last year, but in 2016, it’s fallen from the top 10 to 13th. In fact, its overall score has dropped massively from 74.1 per cent down to the high 50s. Although it improved on accessibility, where it faltered last year, BMW has failed to maintain its scores for aftersales, finance, used car management and bonus structure. It’s difficult to say quite what’s gone wrong here, and it’s definitely a shame in their centenary year. Perhaps a lack of new exciting products has slowed things down a little. Its sales are steady – with registrations up three per cent at the moment, according to the SMMT – so that probably won’t be the issue.

SCORES

100

WE tend to view Land Rover as a trusty brand that never fails to deliver – typically British and just getting on with life without too much fuss. Unhappily though, Land Rover has dropped 10 places from fourth to 14th place in 2016. It looks as though the company has taken on a trend of successes in alternate years – one year is cause for celebration, the next is one to forget. After reaching the 90s for brand awareness and the high 80s for marketing and manufacturer requirements in 2015, results have fallen to 47, 49 and 56 per cent respectively. Perhaps the new Discovery Sport hasn’t been quite as big a hit with buyers as the brand expected. Or maybe the network is still getting over the death of the Defender...

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

In te rn et Ne w su c pp ar ly

aw B ar ra en nd e Ac ss ce ss ib ilit y

0 Fi na nc e

0 m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n c u M ture s an uf ac tu r RO er I

In te rn et Ne su w c pp ar ly

aw B ar ra en nd e Ac ss ce ss ib ilit y

W ar ra nt y Af te rs al es M ar ke tin g

PERCENTAGE

58 47

Fi na nc e

PERCENTAGE

CarDealerMag.co.uk | 49

SURVEY.

11 Nissan

12 Jaguar OVERALL SCORE pUP 12

59.2%

OVERALL SCORE pUP 2

63.5%

49 m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

In te rn et Ne w su c pp ar ly

0 aw B ar ra en nd e Ac ss ce ss ib ilit y

Fi na nc e

aw B ar ra en nd e Ac ss ce ss ib ilit y

W ar ra nt y Af te rs al es M ar ke tin g

50 40

10 Volvo

W ar ra nt y Af te rs al es M ar ke tin g

PERCENTAGE

50 40

Fi na nc e

PERCENTAGE

100

SCORES

NISSAN took a slight tumble in 2015, down four places from its 2014 position to 13th. The good news for the firm is that this year, things are moving back in the right direction, with the Japanese carmaker moving up two spots to 11th. Nissan will probably be a little disappointed not to have quite reached the top 10, especially considering the performance of the new Qashqai. Nissan lost most of its points in the bonus structure, accessibility and manufacturer requirements categories. However, it did score highly for brand awareness, thanks probably to its involvement with Rio 2016 – the company is a supporter of both the GB Olympics and Paralympics teams, gaining much exposure as a result.

JAGUAR will be thrilled to have climbed so many places in 2016. Considering its product line-up, a middle-of-the-road score of 55.7 per cent and a fall of three places on the leader board in 2015 was a little unexpected. The past 12 months since Car Dealer’s last Power survey have been very important for the British carmaker, with the launch of the XE and the F-Pace. The XE alone has had customers flocking to dealerships and the excitement of the F-Pace has had everyone talking. Perhaps strangely, there are no stand-out scores, and, in categories such as brand awareness, its ratings have decreased. But in the majority of other areas, including finance and stock management, things were much healthier.

9 Suzuki

OVERALL SCORE pUP 4

70.4%

71.0%

OVERALL SCORE qDOWN 3

81 70 56

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

In te rn et Ne w su c pp ar ly

aw B ar ra en nd e Ac ss ce ss ib ilit y

Fi na nc e

0 m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

0 In te rn et Ne w su c pp ar ly

aw B ar ra en nd e Ac ss ce ss ib ilit y

W ar ra nt y Af te rs al es M ar ke tin g

50 40

50 | CarDealerMag.co.uk

PERCENTAGE

50 40

70 60

W ar ra nt y Af te rs al es M ar ke tin g

Fi na nc e

PERCENTAGE

100

SCORES

100

SCORES

SUZUKI is a manufacturer to watch. It’s not topping leader boards, but it’s maintaining a consistent score pretty near the top of the table. Suzuki has claimed ninth position in the Car Dealer Power survey, grabbing high marks for return on investment, accessibility and manufacturer requirements. All the evidence suggests that Suzuki is a brand ‘for the people, about the people’. It has dropped marginally by three places this year, but its overall scores haven’t changed that much. Here at Car Dealer, we’ve regularly been reporting on the opening of new Suzuki dealerships around the UK, and sales are definitely moving in the right direction, as evidenced by the latest SMMT figures published on pages 96-97.

THE luxury Swedish carmaker is slowly but surely making its way back up the Car Dealer Power results table. Last year, it climbed six spots to 14th and this year it’s made it to the lovely round number 10. The XC90, which was crowned Car Dealer Power’s Car of the Year this year, has done wonders for the manufacturer and its network. Volvo Cars reported a solid double-digit sales increase for the first six months of the year, posting growth of 10.5 per cent to 256,563 cars compared with the same period in 2015. According to the brand, sales of the new Volvo XC90 were the main growth driver globally. Volvo achieved respectable results for finance, warranty, aftersales and used car management, but ROI was not so hot.

SCORES

0-25% 26-50% 51-75% 76-99% 100% POOR

AVERAGE

GOOD

EXCELLENT

8 Audi

FAULTLESS

7 Honda

71.2%

OVERALL SCORE qDOWN 7

71.4%

OVERALL SCORE pUP 20

85 68

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

In te rn et Ne w su c pp ar ly

aw B ar ra en nd e Ac ss ce ss ib ilit y

Fi na nc e

In te rn et Ne w su c pp ar ly

W ar ra nt y Af te rs al es M ar ke tin g

0 m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

0 aw B ar ra en nd e Ac ss ce ss ib ilit y

W ar ra nt y Af te rs al es M ar ke tin g

74.2%

50 40

OVERALL SCORE pUP 11

6 Citroen

70 PERCENTAGE

50 40

Fi na nc e

PERCENTAGE

100

SCORES

THE arrival of the new Type R helped to put Honda firmly back on the map, not to mention the build-up to the launch of the eagerly-awaited NSX supercar. The Japanese carmaker came in 27th last year, and according to the results, has made a few vast improvements which have helped it climb the results ladder to seventh. Honda’s scores for 2015 were nothing short of disappointing and, at least for a time, it looked at though the brand was on a downward spiral to the bottom. Would it win back the faith of its network? Yes, it would. And it’s proved that in this year’s Car Dealer Power survey. Honda scored a whopping 90 per cent for aftersales, 80 per cent for new car supply and 87 per cent for finance.

AUDI grabbed top spot in 2015, climbing nine places on the year before. Retaining the top spot is never an easy task – in fact, it’s almost unheard of. Nevertheless, we weren’t expecting Audi to fall quite as far down the list as it did. It has retained a relatively healthy score of 71.2 per cent, though, and dealers ranked it highly in categories such as finance, brand awareness and return on investment. There is hope for next year, though – Audi’s first small compact crossover, the Q2, will be hitting the market in November, and is set to attract a new, younger group of buyers to the brand. With this in mind, it’s likely that Audi will score well for brand awareness, finance, warranty and forward planning in 2017.

5 Skoda

75.0%

OVERALL SCORE pUP 18

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

In te rn et Ne w su c pp ar ly

aw B ar ra en nd e Ac ss ce ss ib ilit y

0 Fi na nc e

0 m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

In te rn et Ne w su c pp ar ly

aw B ar ra en nd e Ac ss ce ss ib ilit y

50 40

W ar ra nt y Af te rs al es M ar ke tin g

50 40

70 PERCENTAGE

Fi na nc e

PERCENTAGE

100

SCORES

100

SCORES

SKODA suffered a rather large fall in the Car Dealer Power survey last year, down from second in 2014 to 23rd in 2015. But what went wrong? Looking at last year’s figures, Skoda failed to impress the network when it came to internet activity, forward planning and bonus structures. The brand didn’t perform particularly well on manufacturer return on investment, stock management or accessibility either. However, 2016 sees quite a turnaround for the Czech brand, which scored high marks for finance offers, warranty packages and brand awareness, helping bump it up to fifth in the overall rankings. Skoda has become quite the expert in marketing the brand, helping to drive customers to its dealers.

THE French carmaker is continuing its upward trend towards the higher echelons of the chart. It rose eight places in 2015 to 17th and this year it’s climbed a further 11 spots to sixth. Having scored mediocre results last year, ranging from 53 per cent to 78 per cent at its best, Citroen will be thrilled to see it’s scored at least 75 per cent in all but five categories. The popular Cactus has been a huge success in helping to build the manufacturer’s reputation, which is reflected in its score of 84 per cent for brand awareness. The new DS range has also helped to drive sales over the past 12 to 18 months, with the DS3 and DS5 providing a hit among modern buyers.

CarDealerMag.co.uk | 51

SURVEY.

4 Vauxhall OVERALL SCORE pUP 7

75.2%

2 Volkswagen

79.3%

OVERALL SCORE uNO CHANGE

LAST year was a mixed bag for the Vauxhall brand. Although it achieved a higher overall score over 2014, it did drop four places to 11th. Nevertheless, this year the carmaker has made it into the top five – a more than satisfactory achievement. In comparison to other firms in the top Car Dealer Power results of 2015, Vauxhall scored into the 90s more than anyone else. This year, its scores aren’t quite as impressive but only dip to as low as 68 per cent on two occasions – in accessibility and manufacturer requirements. Vauxhall may not be ahead of Ford in the listings, but you did award the brand a more impressive score than the Blue Oval in stock management – they’ll be pretty pleased with that. SCORES 100

PERCENTAGE

50 40 30 20 10

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

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3 Ford OVERALL SCORE pUP 16

75.6%

84 60

85 71

m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

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50 40

70 PERCENTAGE

83 69

Fi na nc e

PERCENTAGE

100

SCORES

100

SCORES

FORD has risen an impressive 16 places in the Car Dealer Power survey since 2015, placing it firmly in the top three. It’s no surprise really, considering dealers and buyers alike were more than pleased by the arrival of the new Focus RS, and the smaller Fiesta ST200. In June 2016, Ford reached 41,284 vehicles sales and a sales share of 13.9 per cent – more than three per cent ahead of its nearest rival. Thankfully, the downward spiral the brand witnessed in 2014 and 2015 has taken a turn for the better, scoring at least 69 per cent in every category. Ford performed particularly well in finance, warranty and forward planning this year, especially when compared with last year’s results.

DESPITE a relatively dark cloud hovering above the German brand over the past 10 months, Volkswagen has managed to retain the runner-up position in our survey. In fact, it’s the only manufacturer to not fall or rise in the final results, although it did achieve a lower overall rating. It’s never easy breaking into the top three in Car Dealer Power, so VW should be proud that it’s managed to stay in the running for the third consecutive year, having risen from third in 2014. This pays testament to its consistency in upholding a trusting and accessible relationship with dealers across the network. The diesel emissions scandal didn’t impact on the brand’s sales, with 163,600 vehicles handed over to customers in the European market, slightly up on the previous year by 0.1 per cent. Last year, you scored VW down for bonus structure at 59 per cent, but this year awarded the brand 84 per cent. The network also scored the firm generously for marketing and stock management.

WINNER

"Thank you" "Our teams have been working hard to bring all our clients better value and a better experience. With our clear transparent pricing, 360Â° imagery, industry leading SureCheck, and improved inspection reports we're proud to offer our clients the best value in the market. And we're overjoyed that you've recognised this and voted for us to receive the prestigious Car Dealer Power 2016 award for Auction House of the Year."

Tim Hudson

BETTER

Managing Director, Manheim

VALUE AT MANHEIM

SP1208_206 29/06/16

ONLINE | IN LANE | MOBILE CarDealerMag.co.uk | 53

SURVEY.

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1 Kia

88.5%

OVERALL SCORE pUP 7

IT’S BEEN a triumphant year for Kia so far. The introduction of the new Sportage helped the Korean carmaker achieve a record 229,585 new car sales across Europe in the first half of 2016. That was a 14.8 per cent uplift on the 200,038 vehicles it sold during the same period last year and was its best-ever six-month period in Europe. The network has been more than thrilled by the results, and the delight of the UK dealers has been reflected in our survey, with Kia jumping from eighth position to the number-one spot. Paul Philpott, president and CEO of Kia Motors, UK and Ireland, said the fact that the manufacturer had won two awards (the company also picked up the best marketing initiative gong) clearly demonstrated the value of the franchise. ‘This is about the relationships we have with the dealers,’ he told us. ‘We listen, they listen, and together we build a lot of success.’

Paul Philpott, president and CEO, Kia Motors UK & Ireland, receives the award from Car Dealer boss James Baggott SCORES

PERCENTAGE

100

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m an ag S em toc en k F t pl orw an a ni rd ng M re anu qu fa ire ct m ure en r ts st Bo ru n ct us u M an re uf ac tu r RO er I

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TURN THE PAGE TO SEE HOW KIA IS BUILDING SUCCESS FOR THE FUTURE

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DASHBOARD.

Kia is steering itself to an even brighter future Kia is a manufacturer ahead of the curve, winning twice at last month’s Car Dealer Power. Jack Evans went to South Korea for a sneak peek at what’s in the pipeline

Kia Motors boss Paul Philpott with the Car Dealer Power 2016 trophies for Manufacturer of the Year and Marketing Initiative of the Year

t isn’t very often that someone approaches you and says, ‘How do you fancy going to South Korea to drive a new hybrid?’ But that’s exactly what happened recently when our esteemed leader Mr Baggott came over to my desk. Kia’s new Optima has already hit our shores, but the PHEV variant has yet to be deployed – and the Korean manufacturer was keen for us to test it on home soil. That’s why I soon found myself – after a 12-hour flight – facing the intense heat of the summer monsoon season in Seoul. In addition, and to my great delight, there would also be a visit to Kia’s research and development centre in Namyang. Waking up bright and (a little too) early the next morning, it was time to get behind the wheel. It’s for your interpretation but I think the Optima is a good-looking car in the flesh. And when viewed in the context of its home country, you can also quickly see where the styling has come from. Despite being heavily angled towards the European market, the Optima looks just as at home in Seoul as it does in Southampton. Almost every car on the road in South Korea is some form of saloon, with only the occasional large

56 | CarDealerMag.co.uk

The Kia Optima Sportswagon is put through its paces on the handling circuit in Namyang

“

Despite being heavily angled towards the European market, the Optima looks just as at home in Seoul as it does in Southampton SUV breaking the rule. Out on country roads the Optima certainly felt accomplished. Surprisingly, the drive is similar to that you’d see in the UK – there are just as many potholes, too. One thing that the South Koreans appear to love is speedbumps, with almost every town littered with frighteningly high examples that would quite gladly rip off the front splitter of almost any car. Thankfully, though, the Optima dealt with them admirably.

The following day we were treated to a trip to Kia’s R&D centre in Namyang, where all of the car maker’s secrets are kept. This meant giving up our mobile phones to prevent photos being taken of any of the prototypes inside the compound. With pockets somewhat lighter, we were directed towards Kia’s new skid pan and handling track. A completely new development, it sits in a vast area of land surrounded by almost constant construction. Though already the size of a small

on test

Kia Optima Sportswagon What is it? The Optima Sportswagon will go on sale in September, and comes as Kia’s way of entering the ever-popular estate car market. With rear boot space amounting to 552 litres, or 1,686 litres with the rear seats folded down, it’ll certainly keep up with rivals. There are going to be four trim levels of Sportswagon in all – 2, 3, and GT-Line S at first, with a faster GT version coming along in 2017. Aimed squarely at the business market, it comes as standard with a 1.7-litre turbodiesel engine, as well as a vast amount of standard equipment. Priced from £22,295, it looks to take on the likes of the Ford Mondeo and Skoda Octavia. What’s under the bonnet? As previously mentioned, there’s a 1.7-litre turbodiesel engine sitting under the bonnet. Driving the front wheels, it produces 139bhp and 340Nm torque. There’s also either a manual or seven-speed dual-clutch transmission to choose from, with the former returning 64.3mpg and the latter 61.4mpg. What’s the spec like? Base trim ‘2’ cars are fitted with satellite navigation as standard, as well as a reversing camera and steering-wheel-mounted controls. On top-spec GT-Line S cars you’ll find a 360-degree Around View Monitor and Adaptive Smart Cruise Control. Even in its most standard form, the Optima Sportswagon feels sturdy and well put together, with premium plastics used on the dashboard and throughout the cabin. It’s a very comfortable car to be sitting in, and space in the rear is just as good despite the Sportswagon’s sloping roofline.

What’s it like to drive? Thanks to independent suspension all round, the Optima drives extremely keenly for an estate car. At times, the ride can be a little on the firm side, but for the most part it deals well with potholes and bumps in the road. The steering doesn’t have a huge amount of feel to it, although it isn’t tricky to place the car on the road. The engine does come across as a little lethargic in higher gears, with steeper inclines needing a lower cog than you’d really expect. The manual ’box that we tested shifted well, and had a decent feel to it. What do we think? With business customers in mind, it’s easy to see how the Optima Sportswagon will be an instant hit. Even in the private market, decent levels of standard equipment and good build quality will ensure that the Sportswagon will be popular with almost everyone who sits inside it. Thanks to a new approach to handling and dynamics, it’s also a decent car to drive – and room for five people means that you can comfortably take passengers along for the ride, too.

THE KNOWLEDGE Model: Price: Engine: Power: Max speed: 0-60mph: Economy: Emissions:

Kia Optima Sportswagon £22,295 1.7-litre turbocharged diesel 139bhp 124mph 9.8 seconds 64.2mpg 113g/km

town, Kia is keen to keep expanding, it seems. Inside sat Albert Biermann, one of the chief engineers responsible for Kia’s new wave of cars. Originally from BMW, Biermann is behind Kia’s new sporty direction – something that he hopes is evident in the new Optima. ‘It’s a matter of giving a clear idea of where you want to go,’ he explained. ‘We have to respect our existing customers, so we cannot just go wild in one year.’ CarDealerMag.co.uk | 57

DASHBOARD.

“

We have to respect our existing customers, so we cannot just go wild in one year

Kia’s research and development centre has a wet-handling track designed to test the cars’ dynamics and push them to the limit Indeed, if you look at Kia cars on the road, they’re toeing a distinct line between sporty and family-friendly looks. The Sportage, for instance, has experienced huge success in the UK while offering larger-than-life looks. Biermann hinted throughout the day that Kia would be producing a GT – think Kia’s M-division – at some point in the next year. What it would be like, or what it would be based upon, was kept incredibly secret. They hadn’t taken our phones off us for no reason. That car, though, ‘will give a strong idea of what a Kia can be,’ he explained. Certainly, out on Kia’s all-new handling track, it’s on the right path. The Optima handles perfectly well on undulating cambers and rises, acting much more like a German-built saloon than you’d initially think. ‘We need to enhance driving performance and driving fun,’ said Biermann, and it certainly 58 | CarDealerMag.co.uk

seems like the Optima gives an insight towards achieving that goal. The wet-handling circuit also showed that the Optima deals well with typically British conditions – namely, standing water. Predictable and easy to control, it manages its weight well. How does all this apply to the home market? Well, a close tie between factories in South Korea and Germany means any Kia is consistently tested on European roads to make sure it suits the terrain. One thing that’s easy to see is that the brand is reaching ever higher and doing its best to match or beat its competitors. Still offering an excellent seven-year warranty, it remains the go-to brand for those looking for hassle-free motoring. What Biermann explained, however, is that a sporty new angle will draw in even more customers who would usually be attracted by other more-established car makers.

Kia was named Manufacturer of the Year at our Power awards this summer. Given for the second time, it’s an accolade it clearly deserves, and with the Optima it appears it is on track for a third win – and if Biermann’s words are anything to go by we’ve got an awful lot to expect in the future. My tour was a rare chance to see how decisions are made and ideas develop in Kia’s home environment, showing a brand eager for the future and keen to improve its already good reputation. We’ll just have to hold our breath for the sports model, although I’m already hoping that we’re invited back to this incredible country to test it. [CD]

on test

Kia Optima PHEV What is it? The Kia Optima PHEV is the manufacturer’s first plug-in hybrid model, and is offering all of the benefits of a low-emission car in a more traditional body. You’ll find extra styling touches around the car to distinguish it from the rest of the range, as well as added technology that helps it achieve excellent economy figures. What’s under the bonnet? The PHEV uses a 2.0-litre petrol engine to start with. This produces 154bhp on its own, but when combined with a 50kW electric motor this rises to 202bhp. The electric unit also means that the Optima produces an impressive 375Nm torque – something that makes day-to-day driving all the more easy. Returning a combined economy figure of 176.6mpg and emitting just 37g/km, the PHEV is certainly a clean car – and an all-electric range of 33 miles makes it cleaner for longer as well. What’s the spec like? There’s only one specification of PHEV, but it’s well kitted out. You’ll find an 8.0inch touchscreen navigation system, which incorporates Android Auto and Apple CarPlay smartphone connectivity. There’s also wireless phone charging for compatible devices and a 10-speaker premium sound system. Outside, the PHEV sits on 17-inch alloy wheels with LED headlights fitted to the front of the car. Low-drag front and rear bumpers also separate the PHEV from the rest of the Optima range, and blue tints to the headlamps help extend this theme. An active air grille is a neat touch – this helps keep key components at the right operating temperature. The PHEV is equally well built as the standard car and deals well with the silence that comes with hybrids. There aren’t any squeaks or rattles, and

everything feels well sorted throughout interior and exterior. What’s it like to drive? For the most part, extremely relaxing. With around 33 miles of all-electric range, it’s a quiet car to drive around town. When travelling at higher speeds, the PHEV is still remarkably composed and easy to live with. Steeper gradients do strain the engine, though, with the six-speed automatic transmission tending to jump up a gear and stay there – it makes the car feel unsettled when travelling at higher speeds. The car’s brakes also regenerate energy, but they have a tendency to feel a little spongy. It’s just a small area of criticism, but it’s one that you’d notice driving the car day in and day out. What do we think? The Optima PHEV is a fine hybrid, and for £31,495 after the government plug-in grant it’s certainly good value for money. Out on the road – and especially around town – it’s relaxing and simple to live with, with the allelectric mode making short work of inner-city journeys. The car’s brakes do let the good impression slip a little, as does the sometimes whiny engine, but for the most part it’s an excellent choice for those who are looking for a quiet, comfortable and cheap-to-run hybrid saloon car.

THE KNOWLEDGE Model: Price: Engine: Power: Max speed: 0-60mph: Economy: Emissions:

Kia Optima PHEV £31,495 (after grant) 2.0-litre petrol with 50kW electric motor 202bhp 121mph 9.4 seconds 176.6mpg 37g/km

Albert Biermann explains the technical background of the new Optima CarDealerMag.co.uk | 59

FINANCE. Moneyway is making outstanding progress, says MD MONEYWAY has boosted its lending balances by 35 per cent in the past 12 months, according to the firm’s latest financial results. Boosted by the launch of its prime product, the Solihull-based motor finance provider has seen its lending balances grow from £152.3m in June 2015 to £205.6m in June 2016. Growth has been particularly impressive since the start of the year, rising 24 per cent from £165.7m. In addition to the launch of its prime product, the business has made a number of significant alterations over the past 12 months, as it looks to provide a ‘one-stop shop’ proposition across the widest part of the risk curve. Most recently, the firm

promoted transformation manager Richard Cox to lead its operations division. In the year to June 30, 2016, the company saw a 73 per cent increase in the number of proposals received from the same period in 2015, with acceptances also soaring 109 per cent. John Simpson, managing director at Moneyway, said: ‘Moneyway has continued to make outstanding progress. ‘We are in an excellent position in the market, capable of lending across the widest part of the risk curve, and providing a onestop, one-prop option for our dealer network. ‘Our team continues to expand as we look to ensure we can provide a product for John Simpson: ‘We are in an excellent position’ every customer.’

Close Brothers’ Manchester operation has a new home ‘Dealers in north-west keen to tap into our expertise and work with us’

lose Brothers Motor Finance has relocated its Manchester branch to a larger office after a year of rapid growth for the division, which has seen two new senior-level appointments and its dealer base significantly increase. The branch, which was based in Trafford Park, has now taken up residence in new office space measuring 1,500 sq ft on the ground floor of Jackson House in Sale, Greater Manchester, representing a 30 per cent increase in size. The new site, which became operational in July, will focus on developing new business, as well as working Car closely in Dealer with Bannerdealers 1.pdf 6 05/08/2016 C

CMY

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Greater Manchester, Merseyside, Cheshire and Lancashire. Lisa Cowley, sales manager at the Manchester branch, said: ‘We are delighted to be relocating our Manchester office. Over the past year, we have seen a real desire from dealers in the north-west to tap into our expertise and work with us – this in turn has established our Manchester branch as one of the top three branches for signing up new dealers, with our dealer base increasing by 25 per cent. ‘As a company which prides itself on its branch network covering the whole of the UK, combined with a vast team of local account managers, it was 16:00:06

essential that we continued to offer a service which provides local dealers with local knowledge.’ The office relocation comes off the back of a significantly transformative and successful period for the Manchester branch, which over the past year has seen a number of key new additions to the team, including the appointment of Paul McLean as operations manager and Cowley, appointed to head up the branch sales team. They both join the branch’s new-look team, which consists of seven new business underwriters, as well as six account managers, all tasked with helping to strengthen relationships with dealers.

RECRUITMENT

Kelly’s on the Startline for a new challenge

KELLY Ventham has been appointed northern regional sales manager for Startline Motor Finance as the company continues to expand. She will cover an area in the north of the UK, working with dealer groups, independent car sales operations and other motor finance introducers. Ventham has a wealth of motor finance experience, having worked as a sales manager for NextGear Capital and finance consultant for Harley-Davidson Financial Services. She said: ‘Startline have made a definite impact on the motor finance sector since their launch in 2013 and I am very pleased to be joining as they continue to expand. There is a definite buzz around the company.’ Paul Burgess, chief executive of Startline, said: ‘We’re very pleased to welcome Kelly to the team. She has an excellent track record in the industry and will be a superb addition to our business development team, headed by Peter Cottle. We are very much in a growth phase. These are exciting times.’

IN ASSOCIATION WITH

We’ve achieved a lot this year – are you reaching your goals?

t’s good to reflect – and looking at this year so far, it’s been a little unusual. We’ve seen Portugal triumph in Euro 2016 by winning only one game within 90 minutes, plus we’ve seen a huge turnout of people arriving at polling stations across the country and voting for the UK to leave the European Union. We’ve seen the FTSE 100 and FTSE 250 suffer heavy losses following Brexit and then come back fighting to reach their highest points this year. When I reflect on First Response Finance’s year so far, we’ve had a pretty eventful time, too. In fact, it’s been a great eight or nine months. The most notable

‘We have implemented many changes, and taken a lot of steps to try to cater for dealers’ needs’ achievements are as follows: we came seventh in the Sunday Times best companies to work for list for the mid-sized category; we exhibited for the first time in our history – having a stand at the amazing CDX16 was a big step for us and shows a great movement from the team. We have been voted the best sub-prime motor finance provider in the UK by Car Dealer readers – the third time we’ve won this accolade. And, most recently, we surpassed 1,500 five-star reviews on the independent website reviewcentre.com. We have actually been the number one car loan company all year on Review Centre and now have a consumer rating of 4.8 out of five – the highest score we have ever achieved.

Ben

Garside TIME IS MONEY

These are all great achievements, things we are proud of and have worked towards. But why am I reflecting? Well, for one, it’s good to look back, and sometimes all you have to ask yourself is have I done enough? I assume that we all set yearly goals in business and usually that’s a focus from January onwards, but a lot of people lose track throughout the months. So, have you achieved what you set out to at the start of the year, or are you at least on the path to completing your goals? I’m hoping the above questions have sparked a large range of thought processes and you’re currently thinking about personal goals, company goals, team goals and your employee goals. If you’re now kicking yourself because you’ve lost track, don’t worry, there are still nearly five months of the year to go. Refocus and assign energy where it is

Turn over page for more finance stories required and you can achieve anything! Finally, I would like to thank all the dealers who took the time to vote for First Response Finance Ltd in the recent Car Dealer Power awards. Winning the title of the best sub-prime motor finance provider is something everyone who works at First Response is very proud of. We have implemented many changes this year off the back of dealer feedback, and have taken a lot of steps to try to cater for dealers’ needs. We know that our products and service are evolving and are thankful for the feedback we received at the awards ceremony. We will continue to work our hardest for you and be the best service provider we can.

Who is Ben Garside? Ben is marketing manager for First Response Finance. Call him on 07817 518739 or email ben.garside@frfl.co.uk

CarDealerMag.co.uk | 61

DEALFINDER.

FINANCE. YOUR ESSENTIAL GUIDE TO . . . 4x4s BMW X5

VOLVO XC90 THE rejuvenated Volvo XC90 is a stylish, spacious and incredibly comfortable model, with a fantastic new range of diesel and petrol engines. With an excellent set of safety features – having achieved 100 per cent on autonomous safety aids in NCAP testing – the XC90 is a superbly built and very well designed model. On a 5.9 per cent APR representative arrangement, the diesel D5 PowerPulse All-Wheel-Drive Momentum model is available for £499 per month on a 37-month contract. The 36 monthly payments begin following an initial £9,297.50 deposit. The optional final payment for the XC90 is £26,000, meaning if you choose to keep the car the total cost is £53,261.50, with £5,771.50 worth of interest charges on top of the OTR price. The annual miles limit is 10,000, with an excess charge of 14.9p per mile.

SINCE 1999, the BMW X5 has been a great competitor in the mid-size SUV market, and with its great interior features, modern design and 4x4 ability it has continued to be a smart option. One model on offer is the X5 xDrive30d M Sport, which comes with M Division styling and the xDrive all-wheel-drive system. Following a deposit of £9,500, the 37-month contract is on 5.9 per cent APR and has 36 monthly payments of £598.27. Based on 10,000 miles per annum, the excess mileage cost is 13.72p per mile. The total cost to the customer comes to £31,037.72, with the optional final payment at £26,216.47, including the £1 option-to-purchase fee. Overall, the X5 xDrive30d M Sport would cost the customer £57,254.19, which is £2,988.19 on top of the normal price for the model.

Black Horse reports a strong performance for first half of 2016 But increased challenges lie ahead, says MD Richard Jones

lack Horse has followed up its strongest year ever in 2015 by reporting a further year-on-year net lending growth of 30 per cent to more than £10 billion in the first half of 2016. The UK’s leading independent motor finance provider, which is part of Lloyds Banking Group, added 220,000 new customers across its motor, bike and leisure business in the first half of 2016. This compares with 294,000 for the whole of 2015 – itself a record year. It has continued to be recognised for its digital offering, receiving several awards for Black Horse SignIt – an easier way to sign finance agreements online that reduces processing time for new loans by 30 per cent, benefiting dealers and consumers. Car Dealer Banner 2.pdf 1 05/08/2016 16:01:17

CMY

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by DAVE BROWN @CarDealerDave

The continued growth this year has been driven by the ongoing market expansion, the success of its partnership with Jaguar Land Rover and performance in the used car market. As the industry continues to adapt to the Financial Conduct Authority regulations associated with point-of-sale motor finance, Black Horse remains at the forefront of this by supporting its dealers to embed regulations and ensure a great customer experience. Black Horse managing director Richard Jones, above right, said: ‘The first half of

2016 demonstrated a very strong financial performance, driven by new business growth and significant gains in market share, particularly in the used car space. ‘We successfully met increased demand for new and used car, bike and leisure finance. ‘We’re proud that we continue to support our dealer partners in adopting consumer credit reforms, and feel that this is a mutually beneficial way of doing business. However, we are expecting increased challenges in the second half of the year. The regulatory and economic climate is more uncertain, whilst customer digital adoption is accelerating so we must keep pace with this. ‘I am confident that despite these increased challenges we will continue to grow.’

Car Dealer Advert Column.pdf 8 05/08/2016 15:52:05

IN ASSOCIATION WITH

LAND ROVER DISCOVERY THE Land Rover Discovery is known for its superb versatility and excellent off-road capabilities, as well as its bold design and classy interior with the latest in Land Rover technology. At heart, it is an offroader, and with a fantastic level of torque from the diesel V6 engines, you have the pulling power as well. The Discovery Graphite is the mid-range model, and on a 6.9 per cent APR representative, the 37-month contract has 36 payments of £586.99, based on 10,000 miles per annum. With the deposit of £9,500, the total costs are £30,631.64, with a final optional payment of £23,226 that includes the £10 purchase activation fee. At an overall cost of £53,857.64, the Discovery Graphite would cost £6,352.64 over the list price. The reliable and long-lasting Discovery has many fine attributes to help make it one of the top dogs in the 4x4 market. C

APPOINTMENT

SUCCESS

Phil Harding welcomed aboard as iVendi’s first marketing manager

Another year of impressive growth for Carfinance247

PHIL Harding has been appointed to the new role of marketing manager at motor finance technology specialist iVendi. He will be responsible for all marketing strategy and its implementation as the company continues to grow. During the past year, iVendi has seen its number of dealer customers increase from fewer than 3,000 to more than 7,000. Harding has had a career in marketing totalling more than 25 years, as a director of consultancy Balanced Marketing, a director of media company Jenlu Limited, a director consultant at BNI Cheshire and BNI North Wales, regional marketing manager at Kingston Communications plc, general marketing manager at Vanguard Group and marketing manager at Autogem Limited. He said: ‘It’s very exciting to be joining iVendi at this time.’ Chief executive James Tew said: ‘This seemed like the right time to bring on board our first marketing manager, and we are pleased to welcome Phil to the team.’

CMY

ONLINE motor finance broker K Carfinance247.co.uk has achieved another year of phenomenal growth, with turnover up 154 per cent year-on-year. During its past financial year, it supplied almost £210m-worth of loans – a growth of 122 per cent year-on-year – and the team is aiming to increase this figure to £375m in the coming 12 months. The growth has also attracted more lender partners, with four new lenders coming on board this year. In addition, the business has seen a significant rise of more than 55 per cent in the volume of prime business being written. Staff numbers increased by 157 during its past financial year, taking the total number of employees to more than 320, and recently the company announced the appointment of Bill Leyland as finance director.

CarDealerMag.co.uk | 63

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BIG MIKE.

All Big Mike’s columns are on our website. Enjoy them here bit.ly/bigmike

Radio dead: Simple fault that robbed me of half my margin

was reeling the other day after having to replace a radio head unit in an Audi I had on the forecourt. It was an A6 estate, or Avant, in Audi lingo, and it came to me directly from a main dealer group for whom I underwrite older or higher-mileage trade-ins. Overall, it was a tidy thing. Ten years old, but looking marvellous on it, with the 2.5 TDI engine and plenty of history to back up its 130k mileage. An easy enough sell, especially in the area of Birmingham where I’m based, where anything German, ‘premium’ and well-equipped has a ready market. I valeted it, had it all looking spick and span, and within five days had found a customer for it at £3,595. Not a bad return on a 10-year old motor, even if it did stand me in at two-and-a-half. Imagine my horror, then, when I saw my grand’s worth of margin almost halved because of the simplest of faults… On the test drive, we discovered that the radio wasn’t working. Simple enough – I’d not tested it personally, and the valeters, who normally have Radio 1 blasting out at 11, had not deigned to tell me. Assuming the fault to be no more complex than a fuse, or possibly a coded head unit minus its code, I promised that I’d have the Audi wired for sound by the time the customer came back to collect it, along with the 12-month MoT I’d promised as a condition of sale. The MoT was easy – it was only two months since the Audi had last passed one, and since then it was only a number plate bulb that had blotted its copybook, mended for 75p. The radio, on the other hand, was much more expensive to put right, because the dimensions of the blooming thing were unique to the Audi A6. Stereos that are integrated into the dashboard design of a car may look pretty swish, but not when they’re sitting there with the same level of silence as a pro-Brexit politician who doesn’t really know what to do next. We tried the fuse, no joy, and looked closely at all the wiring going into the radio but found nothing awry. We even plugged in the trusty old Panasonic radio cassette that’s built into the wall of my office to check the fault wasn’t in the wiring loom. It wasn’t. The only option, then, was a new head unit. And it turns out they’re renowned for packing up… The auction websites threw up all manner of ones, from ten quid ‘relisted’

Big Mike OUR MAN ON THE INSIDE SPILLS THE BEANS ON THE CAR BUSINESS...

ones that ‘worked when we removed it from the car’ (so why did you remove it then, when nothing else fits the bloody slot?) to the more honest vendors, who’d had them professionally refurbished, but wanted £350 for the privilege of letting you own one. For an extra £100, I could get my hands on a brand spanking new one from the Audi agent down the road, and because I didn’t want my customer to come back screaming a fortnight later, I paid the extra. But what a hit to take. It reminded me of the olden days, when all cars had a rectangular slot that fitted an identically-sized radio within. If the manufacturer unit packed up, or more often than not was crap, you went down to Argos and paid £50 or so for a more decent set. Or, if you were as unscrupulous as my old boss, you gave half that to ‘Radio Ricky’, whose sole source of income was the redistribution

‘If you were a Brummie car trader, there was an added bonus . . .’ of south-west Birmingham’s in-car entertainment from one owner to the next. Those old head units were easy to get out, too, unlike the one in the modern Audi A6. And, if you were a Brummie car trader, there was an added bonus. Back in the early Nineties, our very own local car manufacturer, Rover Group, used to install a fuel cut-off safety device on the front bulkhead of most of its cars. It was in the form of a little ‘plunger’ type button, that would automatically pop up if there was any firm impact to the bulkhead itself. Where an aftermarket radio was fitted, and you didn’t need those little prongs to liberate it from its housing, the trick was to wiggle the radio out when the car was waiting to go through the auction, and perform a swift whack to the wiring loom with a screwdriver handle. Inevitably, the plunger would pop up, and when the auction house came to move the car, it wouldn’t start for love nor money. The amount of ‘nonrunners’ I picked up for a song back then… ah, music to my ears, it was.

Who is Big Mike?

Well, that would be telling. What we do know is he’s had more than 40 years in the car trade and picked up some incredible tales along the way. CarDealerMag.co.uk | 65

FORECOURT.

LOW-NOISE

Four-cylinder engine is remarkably quiet.

COMFORT

DESIGN

Ride is slightly firm but does well on most terrain.

Front end of the car differs between powertrains.

Hyundai Ioniq

Jack Evans became our Ioniq man, testing a world first – a car with three electric powertrains. What did he think? WHAT IS IT? The Ioniq offers buyers something a little different. It comes in three powertrains: hybrid, plug-in hybrid and full electric. For now, the UK gets just the hybrid and the electric – although the plug-in version will be with us in 2017. With three cars available, the Ioniq should offer all things to all people. It also brings to the table excellent economy and emission figures.

WHAT’S UNDER THE BONNET? A four-cylinder petrol engine sits inside the hybrid that we tested, in conjunction with a 32kW electric motor. Together, they produce 139bhp and 147Nm torque. Where the Ioniq differs from other electic cars is in its use of a six-speed dualclutch automatic gearbox, which gives it a feeling of actual gears.

WHAT’S THE SPEC LIKE? Pretty decent. The cabin is well finished with soft-touch plastics, but 66 | CarDealerMag.co.uk

some materials do spoil the effect. There’s plenty of storage room, and the door bins are large enough for a bottle of water. A large eight-inch touchscreen sits in the centre of the cabin, and integrates satellite navigation systems and media, too. There’s also Apple CarPlay and Android Auto, which means that connecting a smartphone is quick and easy. There’s a good amount of legroom in the back, and the rear seats can be split 60/40 to increase the Ioniq’s not overly generous boot space.

WHAT’S IT LIKE TO DRIVE? Hybrids very rarely stir the soul of the avid driver. However, the Ioniq does well to inspire a sporty feeling in the person behind the wheel, mainly thanks to that previously- mentioned gearbox. It really does make the car feel more like a traditional motor, rather than a hybrid. You can put the car in sport mode which allows you to hang on

to the gears a little longer, but in reality most drivers will leave it in ‘drive’. However, the Ioniq’s steering is lacking in any sort of feel. It does this despite being quite heavy, but doesn’t translate any of the front wheel’s activities back to the driver. It leaves you feeling quite disconnected from the whole experience.

WHAT DO THE PRESS THINK?

THE KNOWLEDGE Price: £18,000 (est) Engine: Four-cylinder petrol plus 32kW electric Transmission: Six-speed dual-clutch automatic Performance: 139bhp, 147Nm Economy: 83.1mpg (combined) Emissions: 79g/km

TARGET BUYERS: Those who want to enter the hybrid market, but have initially been put off by the expense that comes with the technology.

Autocar said: ‘With the real-world pollution of diesel cars likely to be under scrutiny for the next few years, the Ioniq looks like it will offer a price-competitive alternative to derv.’

THE RIVALS:

WHAT DO THE PRESS THINK?

1. Competitive entry price 2. Three powertrains to choose from 3 Good levels of standard equipment

For some time, there have been very few competitors strong enough to take on the all-conquering Toyota Prius. However, the Ioniq seems just the car to do that now. It’s cheaper and in our eyes better looking than the Prius, too. The three powertrains offer something for everyone.

Toyota Prius, BMW i3 Mitsubishi Outlander PHEV

KEY SELLING POINTS:

DEAL CLINCHER: The Ioniq is an impressive package, at a price that will attract a lot of people.

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FORECOURT.

ENGINE

The 1.5-litre dCi 110 diesel is the piece de resistance of the French carmaker’s upgraded model.

INTERIOR

THE RIDE

Cabin quality has improved significantly, with new upholstery, matt chrome trim and soft-touch materials – no more scratchy plastics here.

New polyurethane suspension bump stops and a quicker steering rack give the car slightly improved agility and body control.

Renault Clio

It’s come a long way since the old Papa and Nicole days. Laura Thomson tests the latest version of the French supermini WHAT IS IT? This is the facelift of Renault’s fourth-generation Clio, which was launched back in 2012. Now in its 25th year, the Clio has matured significantly, with the French carmaker introducing a host of new styling and design cues, alongside a new diesel powertrain – the 1.5-litre dCi 110 – and the option of the preexisting TCe 120 petrol engine with a manual transmission. On the exterior a new grille, re-profiled bumpers and a cleverly designed LED light signature feature, while C-shaped daytime running lights can also be specified. Cabin quality has improved greatly.

WHAT’S UNDER THE BONNET? We tested a car equipped with the new diesel powertrain coupled with a six-speed manual gearbox. The poky unit produces 108bhp, more than enough to propel the 1204kg B-segment model around, while a spread of torque across the rev range 68 | CarDealerMag.co.uk

means it can accelerate with ease in any gear. The typical diesel engine rattle is particularly noticeable when the car is idle or moving slowly, but fades to an indistinct hum in the intermittent period to 3,000 revs. The dCi 110 returns an impressive 80.7mpg, while emitting just 90g/km CO2.

WHAT’S THE SPEC LIKE? The new diesel engine is only available in the top-level Dynamique S Nav trim, and while its host of standard spec – including a Bose sound system and the new R-link connectivity system – make the almost-£18,000 price tag worthwhile, drivers looking to spend less are unable to benefit from the new powertrain. However, the basic-trim Clio starts from £10,495, meaning the range includes both affordable and high-end (for the B-segment) options.

WHAT’S IT LIKE TO DRIVE? New polyurethane suspension bump

stops and a quicker steering rack give the car improved agility and body control, but not enough to make the drive markedly different to that of its predecessor. The stop/start feature, which comes as standard on a number of the Clio grades, is easy to get along with. A driver-activated Ecomode, which is standard on the Dynamique Nav model and above, can reportedly improve fuel economy by up to 12 per cent.

WHAT DO THE PRESS THINK? Auto Express writes: ‘The Clio is a freshly styled alternative to its supermini rivals, offering plenty of kit and efficient engines.’

WHAT DO WE THINK? As promised by Renault, the Clio is now much more mature and versatile than ever before. This facelift refreshes the product in order to keep up with its constantly improving competitors. The car is sure to remain popular.

THE KNOWLEDGE Model: Renault Clio dCi 110 Dynamique S Nav Price: £17,755 Engine: Four cylinder, 1.5 dCi 110 Power: 108bhp 0-60mph: 11.19secs Max speed: 121mph Economy: 80.7mpg Emissions: 90g/km

TARGET BUYERS: As the Clio has matured so has its target audience. However, it still has a fun element.

THE RIVALS: DS3, Citroen C4 Cactus, Ford Fiesta.

KEY SELLING POINTS: 1. Available from £10,495. 2. Extensive customisation options available. 3. First B-segment Renault to be available with a Bose sound system.

DEAL CLINCHER: Sportier looks and better handling than its predecessor.

GOODIES GALORE

Even basic cars come with alloys, twozone climate control and digital radio.

WHEEL DILEMMA

HYBRID POWER

Top-spec cars have bigger wheels, but they mean bigger fuel and tax bills.

Combination of 1.6-litre petrol engine and electric motor produces 139bhp.

Kia Niro

So is it hero or zero? James Fossdyke travels to Newcastle upon Tyne to put Kia’s first dedicated hybrid to the test WHAT IS IT? Though Kia’s new 500X-rivalling Niro looks much like any other run-ofthe-mill crossover, it’s actually far cleverer than most of its competitors. It’s the first Kia that’s been designed specifically to house a hybrid powertrain, and as such it aims to nab sales not only from the likes of the Skoda Yeti and Mini Countryman but also the Toyota Prius and Hyundai’s new Ioniq.

WHAT’S THE SPEC LIKE?

With a £21,295 price tag, the basic Niro is £7,000 more than the cheapest Fiat 500X, but it is far better equipped than its Italian rival. Unlike the Fiat, alloy wheels and two-zone climate control are standard features. The best-seller is likely to be the ‘2’ model, which costs £22,795 and comes with part-leather seats, a reversing camera and a seven-inch touchscreen satellite navigation system, among other goodies. Those WHAT’S UNDER THE desperate to spend more money BONNET? can go for the ‘3’ and First Edition The only powerplant offered on the cars, which add toys like 18-inch first Niros is the 139bhp combination alloys, leather seats and bigger of 1.6-litre petrol engine and touchscreens, but cost almost £25,000 electric motor. They drive the front and £27,000 respectively and spoil wheels via a six-speed automatic the otherwise solid economy figures. transmission, which allows a quoted fuel economy figure of 74.3mpg and WHAT’S IT LIKE TO 88g/km CO2 emissions, as well as DRIVE? an 11.1-second 0-60mph time and a Hybrid cars are often associated with 101mph top speed. A plug-in hybrid refinement, but the Niro doesn’t version is expected to arrive for the actually major on quietness. In fact, 2017 model year, and will likely despite its near-silence on inner-city prove even more economical. roads, there’s a lot of tyre roar on the

motorway, not to mention the drone of the engine. The Kia’s steering is too vague and light for it to be considered sporty, but it grips well in the corners and the way it contains its body roll is a match for any of its rivals. It’s quite comfortable, too.

WHAT DO THE PRESS THINK? According to Carbuyer, the Niro ‘is an impressive first stab at a hybrid car’, while Top Gear said ‘if you’re dead-set on this style of car, and want loads of kit for the money, a reassuring warranty, and you do a lot of town driving, you might step this way. And we wouldn’t laugh at you’.

WHAT DO WE THINK? Thanks to the steep asking price and strong environmental credentials, the Niro will probably be more popular with company car drivers than private buyers, but the low CO2 emissions and the equally low tax rates they permit will be tempting enough for some.

THE KNOWLEDGE Model: Kia Niro ‘2’ 1.6 GDi HEV Price: £22,795 Engine: 1.6-litre petrol and electric motor Power: 139bhp Max speed: 101mph 0-60mph: 11.1secs Economy: 74.3mpg Emissions: 88g/km

TARGET BUYERS: Anyone after the tax benefits of a hybrid and the looks of a compact SUV.

THE RIVALS: Fiat 500X, Skoda Yeti, Toyota Prius

KEY SELLING POINTS: 1. Low CO2 emissions 2. Bags of kit 3. SUV looks

DEAL CLINCHER: It’s a green, cheap-to-run alternative to the crossover establishment. CarDealerMag.co.uk | 69

FEATURE. HONDA SPECIAL

ON YER

BIKE! Honda. It’s almost impossible not to recognise the name. With the Japanese manufacturer soon to celebrate its 70th birthday, it boasts an impressive heritage of engine manufacturing and racing prowess, both aspects it is constantly advancing. Its multiple divisions see a combined figure of millions of engines sold across the world each year. LAURA THOMSON chats to Philip Crossman, managing director of Honda UK, and Nick Campolucci, head of motorcycles at Honda UK, to find out just how different the divisions really are.

INTERVIEW First things first, how do sales of cars and motorcycles within Honda compare? PC: Globally, Honda sells 4.8 million cars and nearly 18 million motorbikes a year. Our motorcycles are world number one, European number one and UK number one, which takes a huge part of the bike market. Overall, we probably sell about 30 million engines, including over six million pieces of power equipment. Cars are probably the smaller part of our business in terms of units.

overtook us for a year, which we obviously didn’t like, so we came back with a vengeance with some new models and took back our lead. PC: In the bike world we have an organisation called the MCIA, which publishes registrations for bikes. And at the moment, five of the top 10 best-sellers in the UK are Hondas. The PCX scooter takes number one, but interestingly, this year with the launch of the Africa Twin we’re seeing big-capacity bikes in that top 10 again. NC: And the Africa Twin, in the first quarter of this year, is the best-selling bike in the UK. And it was only launched in January!

And how does that transfer to the UK market? PC: In the UK we do around 53,000 cars, 20-odd thousand That’s an incredible success. Have bikes, and 42,000 pieces of power any new cars seen such an uptake? equipment. So we’re 15th in cars in NNC: I think Phil will be able to answer the UK but number one in bikes. this better, but the noise we’ve created Philip NC: In bikes we have a 17.5 per cent and the interest in the Civic Type R Crossman market share, with Yamaha in second has been incredible – we’re the biggest place at about 11 or 12. Yamaha is very similar to market for it in Europe. us in the fact that they have a breadth of range PC: About 50 per cent of the Civic Type Rs are from 50cc right up to big-capacity bikes, so it’s a being sold in the UK. We are now even exporting like-for-like comparison. them back to Japan, which is a major shift for us. Probably about seven years ago, Yamaha The Type R is almost a brand in itself, a bit like 70 | CarDealerMag.co.uk

the Fireblade and Africa Twin are – that’s one of our strengths. Would you say that’s attracting a much younger market to Honda than previously? PC: Oh, without a doubt Type R does bring our age group down. Honda’s aim was to make the brand more exciting and sportier, as we are known globally for our racing. Our UK car line-up from 2008 to 2012 didn’t reflect that – it did in bikes but not in cars. And I think that with the NSX arriving, with the Type R, with the work we’ve done on the CR-V, it’s just getting back to a much more sporty edge. So, would you say this has changed the image of Honda? PC: I think it has. We had a lot of press criticism because our cars were dull, and I think there’s a lot of affection for the brand, and when we start producing cars that people want us to produce we just get a phenomenal response from it. And how are dealers receiving this influx of excitement? PC: Car dealers are in a very good place at the moment. We cannot get enough cars. We’re

PHOTOGRAPHY: JONNY FLEETWOOD LOCATION: NORTH WALES

seeing great showroom traffic and I think the publicity from Type R is bringing people who wouldn’t consider Honda back into considering it. So, when you get Type R, and updated CR-V, when you get HR-V coming in, which is a fabulous car in the biggest-growing sector of the market, that’s great for our dealers. In March, all were carrying an order bank into April, May and June. We’ve not done that for probably seven or eight years. Bike profitability right now is also fantastic. NC: It is. We’ve continued to have models arrive in the past four or five years, including mid-capacity and more new rider-friendly bikes. We’ve got the Fireblade and the Goldwing at the top end, and we’ve got everything from a moped to an 1,800cc flat-six, but we can get a bit samey. Nick But now we have the Africa Twin Campolucci adventure bike, and the new Fireblade will be coming out next year as well. And again this year, the early signs are that it will be more profitable for a bike dealer than it was last year. One of the challenges is that a motorcycle CarDealerMag.co.uk | 71

FEATURE. HONDA SPECIAL SOPHIE’S VERDICT: HONDA CIVIC TYPE R PRICED below £30,000 and pumping out more than 300bhp, this Japanese hard-core hatch is arguably a bargain – as well as completely bonkers. Powered by an all-new 2.0-litre fourcylinder direct-injection VTEC Turbo and driven by the front wheels via a six-speed manual gearbox, the Type R redlines at 7,000rpm. This sounds relatively modest but the turbocharger does make a song and dance as it climbs to the limiter – helping us to come to terms with the loss of Honda’s naturally-aspirated VTEC. You tend to stick out like a sore thumb in the Type R, whether you want to or not. It’s essentially a standard Civic on steroids, and is quite frankly spewing out chancy detailing at every angle. But, then again, if you’re a Type R fanatic, this is exactly the look you’ll be delighted with. Pitted against colleague Laura Thomson astride a Fireblade in the north Wales countryside, I couldn’t help but admire the capabilities of the bike. And you don’t need to be a scientist to know the Type R doesn’t have the stamina to keep up with the frankly insane straight-line acceleration of the Blade. But credit where credit is due – the hot hatch can more than hold its own, especially in the bends, where it was able to close the gap between itself and the Blade.

dealer, in terms of size and space, is far smaller than a car dealer, and if you’re bringing out 45 or 50 road bike models in an average of three colour schemes, that’s a lot of bikes to stock and sell. Is this why Honda Motorcycles introduced a solus dealership strategy in 2007? NC: Back then, we looked at the fact that solus dealers were selling far more product than the multi-brand dealers. And we investigated it and looked at the specialisms. And as you know, in bike world, more than the car world, when someone goes in to buy a bike, they know an awful lot more about the product, because they’ve spent time choosing it and it’s a passion. If you bought a Jazz, would you, a week after buying it, drive back to the dealership and say: ‘I’ve found these great lanes, and by the way would you put this noisy pipe on the back of my Jazz?’ It doesn’t happen, does it? But those are the conversations that happen in the bike world. 72 | CarDealerMag.co.uk

Customers want to speak to specialists. And if someone comes into our solus dealership and says: ‘I’m interested in an adventure bike’, then there’ll be someone in that team who knows everything about Honda adventure bikes. How successful have you found the solus network to be? NC: Our customers get a far better buying experience and generally we get higher market shares, because our dealers haven’t got anything else to sell so really push Honda, because it’s their entire business and they want it to do well. PC: Another big advantage of it is that they also concentrate on aftersales. The better you are at aftersales, the greater opportunity you have of repeat business. We have a great loyalty within our brand and a great part of it is because we have a solus network in car and bike. NC: In bike world we’ve recently appointed four aftersales area managers, which I think are the

only pure aftersales team in the bike world. And their entire focus is on making the aftersales operation of those businesses as profitable as possible. Honda Cars aftersales is very, very strong, so we’re taking some lessons from there and modifying them for bike franchises. That, for me, is where dealers are making a lot of profit. And I always say this to the dealers at our conferences, I want them to make as much profit in the years we don’t launch any halo products as in the years we do. Because that means that their whole business – the clothing, the accessories, the parts and the aftersales operation – is working as well as it possibly can. PC: Aftersales in cars is phenomenal at the moment. We’re number one in terms of retention of any brand. We’ve been very strong in the past few years in signing up PCPs and service plans. How do the business models differ? PC: The business model is very different because

LAURA’S VERDICT: HONDA FIREBLADE AS A Honda rider, I had high hopes for my baby Blade’s £12,799, 178bhp bigger brother. The extra 63bhp and 36kg it had on my CBR600RR was barely noticeable, thanks to its plush suspension and revolutionary electronically-combined ABS system. By automatically applying a small amount of rear brake as I squeezed the front lever on the way into a bend, this system made cornering a breeze, with the slipper clutch working to minimise engine braking. Any tentativeness I had on the raincovered roads soon dissipated when I discovered that the slick-looking tyres were, in fact, remarkably grippy. Faced with an open stretch, I hung back from the Type R to see what the inline four was really made of, and as I worked my way up the gears, the Honda delighted with plentiful power across the rev range. Despite numerous passes along Denbigh’s ‘Road to Nowhere’ for photos, I failed to get bored with the Blade, and it was with a heavy heart that we began the journey back to our bed & breakfast. But with 10 miles of undulating country lanes awaiting us, Sophie and I had plenty of time for one last blast...

of course car is probably dominated more by used car, whereas with used bikes, it’s not so great. And that’s why I think cars are very dependent on aftersales. Because the new car market is so cluttered, so discounted, so competitive, it makes up a small proportion of the percentage. And a lot of dealers, I think, sell new cars to generate used cars and future service business. Most of my dealers will sell one-and-a-half to two used cars per new car. NC: Bikes sell at just over 1.1 used to one new. But our dealers are making very strong margins out of clothing and accessories, whereas cars don’t. Most car franchises have an approved usedtype programme, but in the bike world nothing national exists. We need to look at creating a strong platform that more people would go to knowing that a bike has been approved by Honda, it’s had background checks done, it’s a clean bike and it’s ready to go. And people will pay a little more for that peace of mind.

With such a difference between the franchises, how do they work together in joint dealerships? NC: What we’ve found in the past is that if you get a car dealer to take on the bike franchise they think it’s quite a similar business, because bikes have a number plate and need to be taxed. The challenge is that the two franchises are very different, so if a bike dealer’s going to take on a car dealer or vice versa, they need to get a specialist in. If you’ve got someone with an enthusiasm for the product, they can talk a customer to death and the customer loves it. PC: For us, seeing cars and bikes side by side – because we’re all very passionate about our product – is lovely. But a lot of people think of Honda as a bike company, other people think of it as a lawnmower company and some think it’s a car company. The reality is that we’re an engine company that’s put engines on different things. So, if a car dealer got the right person in charge of their bike business, they could become

phenomenally profitable. If they try to run it like a car business, it will be a disaster. How many joint dealerships do you have? PC: There are four franchises where the bike business is an extension of the car showroom, and I think there are another five where it’s an adjacent premises, and another four or five again where it’s a completely separate premises to the car dealership. Overall, we franchise our bike and car networks separately. NC: While we would encourage crossover, it has to be business first, pleasure second in that respect. We do a full business plan beforehand, look at the territory, analyse the total industry volume, number of registrations, size of the parc, so it’s quite a scientific process. PC: After all, the franchises are very different. The only common thing is the name above the door. Other than that, the only joint thing is a passion for Honda. CarDealerMag.co.uk | 73

FEATURE. HONDA SPECIAL

HONDA

NSX ROADTEST

It’s the hybrid supercar that takes the fight to traditional offerings from manufacturers such as Audi and Porsche. JACK EVANS reports What is it? Chances are, you’ve probably heard of it before. The NSX is the latest incarnation of the iconic original, bringing with it all of the latest technology that was key to the ideology of the first car. What does that mean? Hybrid technology, for one. But whereas a normal hybrid uses electrical power for better economy, the NSX uses it for one thing and one thing only – performance. With three electric motors linked to a turbocharged V6, the NSX produces 500bhp. When all four elements are combined, they result in a car that truly flies. Not only is the NSX a technical advancement, it’s also a sign of intent from Honda. We’ve seen the Civic Type R grace these pages before – and once more in this issue – but now the brand has an icon right at the top of the chain – a halo car. With just two seats and the likes of Audi and Porsche in its crosshairs, the NSX is coming out swinging, but have any of punches landed? What’s under the bonnet? As previously mentioned, the NSX uses a hybrid powertrain to achieve impressive performance. The three electric motors sit in separate areas of the car, so two lie by each front wheel. The third is placed behind the engine, and this one acts as a flywheel and starter motor. Together, and when linked to that turbocharged 3.5-litre V6, they produce 573bhp. However, as all four elements cannot be deployed together, it means the output is actually around 500bhp. 74 | CarDealerMag.co.uk

Thanks to the electric motors, it also creates a heroic amount of torque – 645Nm, which means that anything short of a Porsche 911 Turbo won’t catch the NSX off the lights. How does this power reach the road? First and foremost, through a nine-speed dual-clutch automatic gearbox. Certainly, nine gears sound like a lot – and it is – but the first is used for launching and the ninth for cruising, so consider it more of a seven-speed ’box. There are also four drive modes to choose from – Quiet, Sport, Sport+ and Track, with each affecting the car’s driving characteristics, but we’ll come to those a little later. What’s the spec like? Let’s get the formalities out of the way – the NSX is priced at around £130,000. That puts it in the market of the Porsche 911 Turbo, Audi R8 V10 Plus and McLaren 570S, which as a trio all

offer exceptionally special and well-put-together interiors. Has the Honda lived up to its price? For the most part, yes. The cabin certainly feels special, and the large bucket seats are comfortable and supportive. However, some interior plastics aren’t up to scratch for a £130,000 car, and the infotainment system is just the same as the one you’ll see on the Civic. There’s also next to no storage space anywhere inside. You may be able to reach 62mph in under three seconds, but it’s always good to have somewhere to put a bottle of water. A gripe too far? Perhaps, but the original NSX consistently played the ‘everyday supercar’ card, and to do this you still need somewhere to put your belongings. That said, Honda claims you can fit a set of golf clubs in the boot, and there’s certainly enough room for a weekend’s worth of luggage. What’s it like to drive? With 500bhp and more torque than you can shake a stick at, it comes as no surprise that the NSX is fast. However, the way it deploys its power is what comes as a real shock: with a surprisingly easy launch-control system. Simply select Track mode, hold your foot on the brake while burying the throttle in the carpet, then release

THE KNOWLEDGE

the anchors and away – the NSX will reach 62mph in under three seconds and not stop until it reach 191mph. All the while you’ll be treated to an impressive howl from the V6, as well as all manner of chirps from the turbochargers. Of course, going fast in a straight line isn’t everything. But the NSX is just as accomplished when things get twisty. Thanks to torque vectoring, the NSX can independently brake or accelerate each wheel individually, which allows the car to corner much more sharply than you would expect. When it does let slip, it is predictable and easy to control. But what’s it like to drive around town? Again, pretty much like a more run-of-the-mill car. You sit low to the ground of course, but the front pillars are very slim which means that forward visibility is top-notch. The ride is also very good, and does well to iron out potholes and dips in the road that would unsettle most sports cars. An everyday supercar? You’d better believe it. What do the press think? Auto Express said: ‘This is a very competitive

sector of the sports car market at the moment, but the Honda NSX is striving to offer something new and different with its techheavy hybrid powertrain. It feels easy to drive quickly, yet easy to live with day-to-day.’

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With 500bhp and more torque than you can shake a stick at, it comes as no surprise that the NSX is fast.

What do we think? The NSX had a huge job on its hands – mainly because of its predecessor. With such an iconic forebear – as well as a greatly extended development process – the NSX was never likely to have an easy time of things. Given the amount of pressure, it has done incredibly well. In keeping with the original’s ease-of-use philosophy, the new car manages the trade-off between performance and usability exceptionally well. Not only is it sensationally fast, but the NSX is also comfortable around town and hasslefree to drive. Despite this, when you do want to turn the wick up, it’ll get going like almost nothing else. Sure, the cabin leaves a little to be desired, but the way it drives will leave you thinking less about how to connect your phone, and more about the performance under your right foot.

Model: Honda NSX Price: £130,000 Engine: 3.5-litre twin-turbocharged V6 linked to three electric motors Power: 500bhp Max speed: 191mph 0-62mph: 2.9 seconds Economy: 25mpg Emissions: 290g/km CO2

TARGET BUYERS: Those who have seen the conventional rivals, and want something that stands out from the crowd.

THE RIVALS: Porsche 911 Turbo, Audi R8 V10 Plus, McLaren 570S

KEY SELLING POINTS: 1. Incredible, usable performance 2. Excellent ride comfort 3. Brutal acceleration

DEAL CLINCHER: Once you’re behind the wheel you won’t want to leave. CarDealerMag.co.uk | 75

FEATURE. HONDA SPECIAL

Exhaust system lies under the boot

HONDA

NSX

FACTS&INTERVIEW Nick Robinson, vehicle dynamic engineer for Honda R&D, talks JACK EVANS through some key points of the new car How has motorsport affected the development of the NSX? Quite a few of our engineers that had spent time in our motorsport divisions worked on the project. That was an indirect use of our motorsport knowledge. Inside Honda, that culture of ‘we’re going to take some of our engineers and let them go to motorsports and come back and apply what they’ve learned to production cars’ is still very real. With its sporting nature, the NSX development came closer and closer to a motorsport environment. A lot of what we learned from motorsport we were able to use in the NSX.

Brakes are steel as standard. Carbon ceramics are optional

Car floor is completely flat for better aerodynamics

Are there any elements you’ve learned from the NSX that you can apply to cars further down the range? breaking the mould inside Honda Completely. The damper control that with the development process. we’re using can be translated exactly There were a lot of powertrain and to other cars. When we make a new chassis systems to develop, and Nick Robinson control system, what we’re making the engineers that were called are is the logic to control the damper and then we now being redistributed into a more normal calibrate it for the particular model. development programme. We now have this, So the logic stays the same. We created a lot of and know that we can do it, so when we go back new logic for this car, and we can take this and and do Jazz or Civic and there’s a development recalibrate it for other cars. We’ve had all-wheelproblem or someone on the team says, ‘that’s drive and torque vectoring systems in the past, good enough’, we can push back and say, ‘no it but again we’ve made new logic blocks for this isn’t’. From a human side, we’ve stretched our car to eke more performance out of it. Those can ability to make new and interesting products. then be used on our more road-going cars. I’d say that’s even more important than the The actual components of the sport hybrid technology side. system have already been used on an Acura SUV Whatever the model is, we can push the in the States. Another thing that we’re doing is envelope on the segment as much as we need to. 76 | CarDealerMag.co.uk

Thin pillars give great forward visibility Standard tyres come from Continental

Are you just as conscious with emissions with this car as you would be for normal vehicles? Do you think it’s important to be conscious to some degree, even with sports cars? I do. We say about ourselves that we’re a company that we want society to want. There’s always a balance. We can use our sport hybrid system here with a focus on performance driving, but the NSX’s consumption for the segment is pretty much better than most of its rivals. Even in these segments we can stand out in that typical Honda fashion – economy and emissions. Do you think it’s important to make these types of cars easy or difficult to drive? We’ve driven a lot of other cars in this segment – and they’re all wonderful cars – but what the

Roof can optionally be made of carbon fibre

Large wing mirrors make parking easier Body is created mainly from aluminium

Bonnet vents keep electrical systems cool

LED lights give great night-time visibility

majority seem to have is this non-linear response in the brakes or steering. That means a good driver can still operate that car near its grip limit on a circuit environment or a winding road, but it’s a lot to think about. You can still drive smoothly and control the loading on the contact patches, but it takes a lot of brain power. To say the NSX is simple to drive is a negative connotation. That isn’t what we wanted to do, but we wanted a tool that was very easy to use so that your driving experience doesn’t have to be about taming the car, but you can still choose your own path. We wanted to have this unified control between man and machine. What sort of cars did you put up against it? For our development, we saw from the price

segment the Porsche 911 Turbo and the Audi R8 V10 – those were our main competitors. We also used a lot of Ferrari 458 data traces, and we used that quite a lot, but if you option it correctly, it can cost almost twice what our car starts at. It’s a wonderful car though, and a benchmark for a mid-engine super sports car. We also had an early McLaren and a Porsche 911 GT3 which we got in predominately for its steering feel. Those were the main ones we focused on. The one thing that we found when we started was that all the rivals were great – none of them were terrible cars. So initially it was quite daunting, and we wondered whether we were going to be able to do it. We’d say that those cars are quite conventional in how they deliver their performance though.

What we’re wanting the NSX to be today – and what it was 20 years ago – is a look into the near future and what we want sporting driving to be. We’re using the same core values as the original NSX team did 20, 30 years ago: to use the latest available technologies to help the driver. Where do you think the NSX can go from here? We feel we’re at the starting line. The details of that next model haven’t come out – we officially haven’t said anything – but we’re on that first step. One thing we’ve also said is that NSX is independent of specific technology, it’s always going to be an expression of Honda’s sporting DNA. Of course, in the near future, this is the platform that we have and we’re going to use it. [CD] CarDealerMag.co.uk | 77

78 | CarDealerMag.co.uk

FEATURE. 100 DAYS OF TRADING UP

Welcome aboard to Snows – and thanks again to Blackbushe JAMES BAGGOTT reports on the latest instalment of his charity challenge, launched to mark our recent 100th issue

THE STORY SO FAR...

Lexus LS430

Handed Lookers £100 for Lexus. CAP Clean value £3,500

Vauxhall Astra

Perrys takes Lexus and hands over Vauxhall Astra Diesel. CAP Clean value £4,300

The Audi A1 bought for the bargain price of £7,100

s my challenge to raise money for Great Ormond Street Hospital by trading up as many cars as possible in 100 days draws to a close, progress has unfortunately stagnated. When I left you last month, I was in possession of a smart 11-plate Audi A1. Daksh Gupta of Marshall Motors fame had let me have the little German runabout for £7,100 – which, let’s be fair, was an absolute steal. Buoyed by the success of our Mercedes at BCA’s flagship Blackbushe site, returning me the £7,100 I paid for the Audi after a £5k investment in it, I decided that the best way to move the A1 on was to again call on the auctioneers for help. Blackbushe boss James Gibson was more than happy to help out once more. I dropped the car to him and he was amazed at the fact it had all its paperwork contained in the pristine Audi sales pack it would have been handed over to its first customer in. ‘We’re not used to such luxuries,’ he joked. Gibson was confident he could return an impressive figure once again for our charity challenge, so I let him work his magic and crossed my fingers. I’d predicted that the car was worth around £9k CAP Clean in last month’s magazine – but using my in-house trade bible (Andy Entwistle and his HPI account) I found out it was more like £8,300. Wishful thinking on the £9k, then.

James with Wimbledon Audi sales manager Ian LowrieKanaka So with a target price in mind, I waited for the phone to ring on the day I knew it was heading through the block. Just after midday I got a text from Gibson. ‘It went for £8,450!’ it read. Nice. The power of Blackbushe never ceases to amaze me. The 36k-miler achieved over CAP Clean and returned a healthy profit for Great Ormond Street. While I wait for the cheque to arrive, I’ve been hunting around for another car. A tweet about the success of the sale at BCA elicited a reply from follower and local car dealer Neil McCue, group board director of Snows. On the phone we talked about the charity challenge, the dramatic growth Snows Group has seen in recent years and, most importantly, the fact they’d love to help me out. As we go to press, he’s promised to find me a car – which, I’m sad to say, will probably be my final trade for this challenge. Let’s hope it’s a good one. Tune in next month to find out how I got on. BCA: Still driving the market after 70 years, over the page

Peugeot 208

Perrys exchanges Vauxhall Astra and hands over Peugeot 208. CAP Clean value £5,000

Mercedes E Class 320 CDI Estate Jardine’s Porsche Centre East London takes 208 in exchange for the Merc. Sells at BCA auction for £7,100

Audi A1

Buy Audi from Wimbledon Audi for £7,100. Sells at BCA auction for £8,450 CarDealerMag.co.uk | 79

FEATURE.

BCA still driving the market The famous auction company has always been known for its pioneering spirit, not to mention its flexibility and capability

7 To mark BCA’s 70th anniversary, Simon Henstock picks 10 of the more unusual and interesting vehicles sold by BCA over the years.

In the early 1990s, we conducted the sale of a modest ‘W’ registered Austin Metro. It was an unremarkable car in every aspect, perhaps worth around £1,200 at the time. The fact the car had been driven by the then Lady Diana Spencer at the time she was first linked with Prince Charles resulted in the car selling for more than five times that value.

BCA provides the backbone of the UK and Europe’s automotive supply chain

ounded in 1946, BCA celebrates 70 years of service to the UK motor industry this year. From modest beginnings that saw founder David Wickins stage a sale in a marquee at Frimley Bridges in 1946 selling 14 cars, today, BCA touches more than 3.5m vehicles a year and works with manufacturers, fleet operators and dealers to provide the backbone of the UK and Europe’s automotive supply chain. During its long history, BCA has become one of the best-known names in the motor industry and established the blueprint for success in the vehicle auction sector through expansion, acquisition and innovation. The company was the first UK auction group to operate in Europe, the first to stage electronic auctions, the first to launch a website and the first to auction vehicles on the internet. Today, that pioneering spirit continues as BCA Marketplace plc. The company recently announced a strategic expansion across the UK to add capacity to its network, which has seen the integration of the recently-acquired Scottish Motor Auction Group (SMA) business, the acquisition of car transporter Stobart Automotive and automotive services provider Ambrosetti. The BCA family also includes the well-known WeBuyAnyCar.com brand. Simon Henstock, BCA’s chief operating officer, UK Remarketing, has nearly 40 years of

experience with the company. During his long career, Henstock has sold hundreds of thousands of vehicles and still enjoys the buzz of auctioneering used cars. He says: ‘Auctions are the stock market of the used car sector and handle everything from nearly-new models to older high-mileage examples. This flexibility, and the capability to handle huge volumes of vehicles quickly and efficiently, is why vehicle auctions continue to thrive in a rapidly-changing marketplace.’ He added: ‘As the market leaders, BCA has evolved to meet these changing needs, improving the service to customers and offering different ways to buy. ‘For example, the business uses a bespoke iPad app to deliver accurate and consistent pre-sale appraisals on all vehicles entered for sale, which links directly to BCA’s online catalogues to generate a condition report alongside high-quality images.’ He added: ‘Buyers in the auction hall compete with online bidders on almost every vehicle we sell and 25 per cent of all vehicles sold at BCA are purchased online. ‘We also offer over 400,000 vehicles a year with the benefit of a BCA Assured mechanical inspection which is an independent multi-point vehicle check carried out by the AA at BCA. ‘After 70 years, BCA is still driving innovation in the market.’

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Auctions are the stock market of the used car sector and handle everything from nearly-new models to older high-mileage examples. 80 | CarDealerMag.co.uk

BCA has handled the sale of a number of cars from Rod Stewart’s collection over the years and these vehicles caused a great deal of interest. Rod is well-known for his love of powerful sports cars and is, of course, one of the best-known names in British pop and rock. One car – a Lamborghini Countach Anniversary in white – sold for £100,000 and made an appearance on the Big Breakfast TV programme.

Star vehicles from TV shows always create a lot of interest. BCA had the privilege of handling the sale of Jones’s van from the Dad’s Army TV series, complete with portholes for the platoon to stick their rifles through. This pre-war commercial van sold for £10,400 in 1991 – perhaps double what it might have achieved without its interesting history.

In 1969, BCA handled the sale of Bruce Reynolds’ Lotus Cortina – registration BMK 723 A – as part of the ‘Great Train Robbery Special Auction’ held at Measham on February 4, 1969. Police had seized the convicted Great Train Robber’s prized ‘getaway’ car and it was sold as a ‘proceeds of crime’ vehicle. Other items in the sale included a range of possessions found at the gang’s hideaway. The sale caught the public imagination and even prompted cartoons by Giles in the Daily Express and Jak in Evening Standard.

Another car from the mists of time was Chitty Chitty Bang Bang, sold by BCA twice in the 1970s. Six Chittys were made for the film and BCA sold the fully functional roadgoing version with the UK registration GEN 11 that is seen driving throughout the famous movie starring Dick Van Dyke.

after 70 years 1

BCA’s first sale was at Frimley Bridges in 1946

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It’s rather macabre, but in the 1990s, BCA sold the 1964 Austin Princess hearse used for the funeral of Sir Winston Churchill in January 1965. The then brand new hearse was used to carry Churchill’s coffin past crowds of mourners from Festival Pier to Waterloo Station. It latterly went into service with royal funeral directors JH Kenyon Ltd. The hearse was subsequently resold several times and currently resides in the US with a collector who paid £3 million for it.

In 1996, BCA auctioned the first MG F models in a special sale on behalf of Rover. Interest was so high in the newly-launched

4 model that the 30 or so examples sold averaged more as used cars than they had cost new. On average, each car made seven per cent above the new list price.

In 1989, BCA sold the loose parts of a disassembled Bentley 3 Litre Open Tourer, that was presented for sale in bits. Sold at the height of the classic car boom on September 11. 1989, this collection of parts realised £80,400.

This 1970 Royal Mail Morris 1000 Post Van sold for £8,000 in 2010. The Royal Mail had donated the van for sale with all the proceeds going direct to Barnardo’s, the Royal Mail’s

chosen charity. News of the sale attracted a huge crowd of buyers – including Morris collectors and Royal Mail enthusiasts. The van had seen service in Poole and Bournemouth in the 1970s and had been fully restored by four dedicated Royal Mail employees.

The 2006 Bugatti Veyron EB 16.4 sold for £625,000 in 2010. It represented a UK record value for a modern production car at auction and the highest value ever achieved by BCA on one vehicle. The sale attracted hundreds of people to the Blackbushe auction centre and included internet bidders from both the UK and mainland Europe. CarDealerMag.co.uk | 81

A Z A F I R A D E

G O M G C U V I G

K P B P Y H L P J

P V C A E N Q R F

C C S P O L O S I

Dealer Management System of the Year Dealer Management three years in a row System of the Year 82 | CarDealerMag.co.uk

Z L S E U C D K E

O M I G F J S O S

E A E O W X K V T

L C F B B C A E A

Q G O L F O F H D

X H W R A R O L L

M K G P K S C C F

F I T O Z A U R E

Y O E C T G S I F

A U R I S E K W E

S O N A S X D O J

 sales@dragon2000.co.uk  dragon2000.co.uk  01327 222222 333333 sales@dragon2000.co.uk  dragon2000.co.uk  01327

FOCUS ON.

Dealer Management Systems

Innovative tools to help you save time and make money DRAGON2000

W: dragon2000.co.uk T: 01327 222 333

ragon2000 has recently launched a new, easy-to-use mobile app, APPraise which features innovative tools for vehicle appraisals, vehicle health checks (VHC), sales videos and adding cars to stock from any location, all via a phone or tablet. Available for both iOS and Android devices, APPraise is free to all DragonDMS customers. The new app enables dealers to carry out an indepth appraisal on a vehicle, using both photos and notes, which is then stored within the DragonDMS system. APPraise is ideal for appraising part-exchanges and cars bought for stock, as well as recording the condition of customers’ cars on collection and delivery. The appraisal is carried out in the app and, once completed, appears within the DragonDMS. Users can open an existing appraisal record and attach it to a new estimate, booking, service or prospect record. Alternatively, users can create an appraisal report for multiple uses. The sales video tool gives dealers the opportunity to speed up the sales process, before the customer has even walked into the showroom. Dealers can send a personalised video of a car a customer has inquired about immediately. This is more likely to result in the customer visiting the dealer, which is especially helpful for long-distance buyers. Mark Kelland, Commercial Manager at Dragon2000, comments: ‘We have invested heavily in developing APPraise to

ensure it helps dealers with service upselling, making better buying decisions and converting vehicle sales. ‘We designed APPraise with tools that are highly intuitive, making them simple to use. For example, adding a new vehicle to stock couldn’t be easier. All dealers have to do is enter a registration number into the app, confirm the details and a vehicle stock record is created in the DragonDMS system straight away. ‘APPraise is fully integrated with our dealer management software, DragonDMS. We save dealers time, by giving them a single point of data entry for the purchase and sale of cars, car sales advertising feeds, VAT calculation, vehicle servicing and CRM.’ Dealers who have a Dragon2000-built

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website. alongside DragonDMS, enjoy the convenience of all sales inquiries made through a dealer’s website, being automatically stored in DragonDMS, within the CRM feature. Customer inquiries are sent straight from the website into DragonDMS and stock is uploaded at the click of a button. Furthermore, service bookings are transferred directly into DragonDMS. Mark Kelland continues: ‘We develop both standard and bespoke dealer websites with fresh, modern designs that are all fully mobile-responsive. Stock is automatically sent to Auto Trader, eBay, Motors and more, saving dealers time as they don’t need to rekey cars onto their website.’ Dragon2000 has over 20 years of experience, helping dealers grow their businesses. The firm’s software is used by over 1,000 motor trade dealers and independent workshops, in the UK and overseas. DragonDMS is a complete Dealer Management System – integrated software for car sales, workshop, parts inventory, accounting and car dealer websites. DragonDMS software is integrated with Sage50, enabling dealers to easily produce accounts reporting. n For further information, please call 01327 222 333 or go online to dragon2000.co.uk

We designed APPraise with tools that are highly intuitive, making them simple to use.

Mark Kelland CarDealerMag.co.uk | 83

Paperless isn’t the future of aftersales. It’s now!

...introducing

Customer ‘Meet & Greet’ with full booking details Digital job card with customer signature capture Mobile technician clocking system Photo and video capture Full integration with Gemini Systems’ class leading eVHC and Dealer Management System +44 (0)1522 698911 84 | CarDealerMag.co.uk

enquiries@gemini-systems.co.uk

www.gemini-systems.co.uk

FOCUS ON.

Dealer Management Systems

Providing customers with real value for their money GEMINI SYSTEMS

W: gemini-systems.co.uk T: 01522 698 911

emini Systems produce the classleading Evolution DMS for franchised dealers, independents and car supermarkets. Two new ‘Business Accelerator’ products, fully integrated with the core DMS, are now available. Jon Skinner, director of business development, says: ‘We focus on the delivery of products and services that are going to be beneficial and provide real value for our customers. ‘Our latest Business Accelerators are two very good examples.’ Campaign 365 Skinner explains: ‘Campaign 365 fully utilises the Evolution DMS data to manage customer contacts, reminders, marketing campaigns, customer newsletters and much more, via traditional letter, SMS, email and social media. ‘An important measure of the success of Campaign 365 is whether it is used effectively and can be shown to contribute to the dealers’ financial performance. ‘One of the key features is the visualisation of vital information through dashboards such as retention rate, return on investment and penetration, allowing management to monitor real-time financial contribution from their selling initiatives and then dynamically measure/modify sales actions accordingly.’ Skinner continues: ‘Marketing is one of the most important functions that businesses carry out, yet many dealers find they don’t have the skills or resources to carry out campaigns on a perpetual basis. Campaign 365 has made the process completely automated, so once a

campaign is created, it will run either indefinitely, such as service, MOT and eVHC reminders, or at a particular point for specific offer periods, such as new model launches or a summer check. ‘We’ve made the creation of campaigns simple with a seven-step wizard to guide the user through the creation; it’s possible to import HTML templates or create content-rich graphical emails on the fly. Previous campaigns can be cloned and targets set for invoice values and penetration that are linked to the ROI reporting, which allows dealers to accurately see which campaigns have been effective and profitable.’ TechMate TechMate, an Android App, is fully integrated with Evolution DMS and delivers incremental

efficiencies and benefits over traditional workshop clocking solutions. Skinner explains: ‘Technicians use a digital jobcard to clock on/off the operations of a repair order with a tap of the screen. Tasks, such as road tests, workshop clean-ups and breaks, are also handled on the tablet. Workshop control can assign operations to a technician via drag and drop so an order of work is presented to the operative and the re-allocation of jobs to other technicians is both visual and quick. Technicians can also clock onto unassigned jobs by entering the registration or job number. ‘Multiple photos and/or videos can be taken and notes added to each operation. These can be sent instantly to the service advisor creating seamless and effective communication between the workshop and service reception. Emerging work and eVHC upsells added to a repair order by the service advisors are instantly visible on the technician’s tablet, allowing them to start work immediately, rather than waiting for the job card to be amended and reprinted. ‘The service advisor view allows for a digital meet-and-greet process with the customer where contact information can be confirmed or added along with the collection of a digital signature.’ Skinner also explains how TechMate allows service advisors and technicians to ‘go mobile’. He says: ‘Use of 3G/4G networks allows technicians to work remotely whilst still giving workshop control full visibility of the technician’s clocking activity. ‘Additional work lines required can also be sent instantly to their remote device.’

CarDealerMag.co.uk | 85

FOCUS ON.

Dealer Management Systems

CDK GLOBAL

ways DMS can boost profitability W: cdkglobal.com T: 01488 662662

eil Packham, Vice President and Managing Director, UK Region for CDK Global, reveals how an integrated, dealer-wide DMS can future-proof your business, increase efficiency, improve customer retention and maximise revenue potential.

Improve data accuracy DMS products that do not have integration across all departments will contribute to a poorer customer experience. Make sure your DMS is fully integrated across every dealership process to allow customer data to be shared company- and network-wide. This will enable a much more joined-up, multichannel customer experience with total visibility of all customer interaction.

Consistency = customer satisfaction An integrated DMS, shared across a dealership or dealer group, is the essential foundation for consistency, efficiency and customer satisfaction. Your DMS should enable sales and service staff to deliver a consistent service while providing the data that will allow them to make customers feel valued, build trust and enhance their experience.

Get mobile Utilising mobile devices and tablets to interact with customers in a relaxed and informal manner will enable you to identify potential new revenue streams. For example, a vehicle health check completed on a tablet integrated with your DMS can allow you to instantly act on the results to provide quotes and access workshop schedules.

Never lose a lead Without an integrated DMS, many leads aren’t followed up – make sure your DMS can drive the customer experience from the first point of contact, with automated processes ensuring that staff

86 | CarDealerMag.co.uk

sales follow up on all initial interest. Once a lead is entered into a central, integrated system it cannot get dropped, greatly improving the customer experience and bridging the gap from online to your dealership.

Increase marketing power A multichannel approach to customer relations can boost profitability and ensure the journey continues beyond the car-buying process. A proficient DMS should allow a co-ordinated approach across all channels but with one CRM record to ensure a more joined-up approach and consistency with all inbound or outbound communications.

The customer is in control Customers want to choose how and when to interact with dealers. Their requests should not duplicate DMS processes – for example, online service booking is becoming increasingly popular so a dealer’s DMS should channel appointment requests straight into the workshop management system to save time and effort for both customers and dealership staff.

Future-proof your business Make sure your software provider is able to provide regular automatic software updates.

Your DMS should be ready to support further evolutions in retail technology and provide the latest in cyber security.

Empower staff With the right information to hand, sales staff have the power to personalise customer interactions whether online, on the phone or face to face. An ongoing training programme from your DMS provider can ensure staff are maximising the software’s power and always identifying potential new revenue streams.

Increase operating efficiency Become more efficient by having systems all joined up and communicating with each other. Each department can then manage a customer’s car ownership cycle with consistent levels of service and help build customer profiles that will determine future interactions and encourage repeat custom.

Make informed business decisions A proficient DMS should allow you to set financial controls and instantly access continuous performance reports from all areas of the business. Company-wide reporting enables efficiency enhancements and can limit risk when planning long-term investments. DMS is the platform to drive your business forward so don’t be constrained by it – you can only plan your strategy for business evolution if your DMS can deliver what you want to do. Your support software should have the flexibility to support process change and allow your business to grow and thrive in the face of changing retail demands. CDK Global’s DMS platform Autoline Drive integrates each of these functionalities, while its global business brings learnings and trends from other markets, aiding the development of new product elements and refining existing processes.

Technology, people and process working together MDF DATABASE SOLUTIONS

DMS tends to cover a vast array of business-critical areas: accounting; database; sales; service; parts; CRM; stock; VHC and so on, Chris Poulsom, CRM Director at MDF Database Solutions, tells us. He adds: ‘While there are some great DMSs out there – and they are a must for any dealer – the very nature of this large remit can make them complex to operate and not necessary specialist in all business-critical areas. People Generally, software is only as good as those that use it and their knowledge of the system. ‘Behind every DMS there are tens, hundreds or even thousands of users within the large dealer groups,’ Poulsom goes on to say. ‘Our experience shows that DMSs are often used to a fraction of their capability. This is understandable with the need for initial and ongoing training sometimes being neglected due to cost and in an industry with a high turnover of staff. ‘The user experience has a big part to play in that,’ he says. ‘Is the DMS designed with the user in mind making it very straightforward to perform their duties, negating the need for much in the way of training? ‘For core processes, a great user interface should not need much explaining,’ Poulsom tells us. ‘Giving people the right tools to do the job is an area we pride ourselves on. A great user experience leads to happier staff and ultimately a better customer experience and increased retention.’ Process The need for robust and documented processes becomes ever more apparent as DMSs become capable of delivering more functionality. ‘Data should be considered as the core of any modern

W: mdfcrm.com T: 01672 841565

business, but what data you hold directly reflects how customers perceive the business,’ says MDF. ‘Our analysis across hundreds of dealers’ DMS data, including some of the biggest groups, shows that one in five MoT reminders get sent at completely the wrong time – disappointing customers, losing business and wasting money. ‘Poor data captured into DMSs is usually a result of the process at the coal face. Database measures tend to be based on how much data there is, not how good that data is. ‘If the quality of a fixed date like an MOT is wrong 20 per cent of the time, how good is the quality of other business-critical data captured by users? This is an area of focus for us with increased business and cost savings overnight.’ Getting the right data then is crucial. ‘The DMS or other software is only an enabler to help do the job,’ says Poulsom.

People, process and technology working as one MDF Database Solutions (Moving Dealers Forward) was founded in 2001 and focuses on helping to get people, process and systems working better together. Part of the key to success is the company’s own award-winning database management and CRM software which looks to join together DMS data with data from other suppliers to generate a single customer view. MDF provides a one-on-one approach with its clients and the field team conducts monthly visits to each of their hundreds of dealer clients which is the number-one thing that makes a difference. MDF concludes: ‘There are some really good systems out there but only if used well. We’re here to help focus dealers on CRM, database management and customer contact whether using their own systems, ours, or both. ‘We’re working with dealers to bring together data from multiple systems, joining online and offline data and breaking down departmental silos to improve customer experience. It’s a change in culture and tradition that is going to take some time but no amount of technology is going to replace the need for people interacting with customers.’ [CD] by Andrew Evans (@snavEwerdnA)

‘‘

For core processes, a great user interface should not need much explaining. CarDealerMag.co.uk | 87

WINNER

Protection you need for the risks you face

It pays to have a plan Great value rates from leading insurers Advise based on over 25 years of Motor Trade expertise

Trade Insurance Provider of the Year Car Dealer Power Awards winners

Keeping your business motoring

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planinsurance.co.uk

0333 003 0609

FOCUS ON.

Car Dealer Power success

Award-winners can protect your business PLAN INSURANCE

WINNER

W: planinsurance.co.uk T: 0333 003 0609

he trials and tribulations of running a business can often prevent even the most vigilant of owners investing time and money into securing their assets. Having comprehensive cover in place to protect your business from the risks it faces is of vital importance for any car dealer. Whether you sell cars part-time from your home, or have a large forecourt with multiple stock cars at any one time, you’re likely to have cars in stock of considerable value, which means dealer insurance is necessary for you. Would you be able to carry on trading as usual if something were to happen to your vehicles? If they were stolen, damaged or destroyed in a fire, for example? If the answer is no, then you should consider investing in a Car Dealer’s Insurance Policy with Plan Insurance Brokers. The insurance specialist – established in 1989 by Peter Georgiades and his eldest son Scott – arranges cover for more than 7,000 motor traders as well as significant commercial motor insurance markets. The Surrey-based firm employs a team of 70 agents, who are able to offer highly-competitive rates thanks to an extensive panel of leading motor trade combined insurers. It controls Gross Written Premium (GWP) of more than £17 million on behalf of over 14,000 clients. Plan Insurance attributes its success to its obsession with customer service and in every market that it operates, the firm seeks to modernise, streamline and add value on behalf of its clients. By providing class-leading customer service, expert advice and negotiating competitive prices, Plan Insurance Brokers ensures that year after year, its loyal clients return to renew their policies with complete confidence in the firm’s independent guidance and professionalism. Grant Georgiades, marketing director at Plan Insurance Brokers, said: ‘Car Dealer’s Insurance is essential for any business that deals with the sale or trade of vehicles. We understand that every business is different and every insurance policy should be flexible enough to reflect that. We take the time to get to know your business so we can tailor a policy to suit your needs.’ A typical Car Dealer’s Insurance Policy will cover everything from garage stock, road risk for goods

The Plan Insurance team were triumphant at the recent Car Dealer Power Awards in transit, contents insurance, public liability insurance and employer’s liability insurance. ‘Plan Insurance Brokers is totally independent and seeks to find its clients the most suitable and best-value cover from an open insurance market,’ said Georgiades. In the event of a mishap, legal fees alone can be costly, without the damage that could be done to a showroom’s reputation. Dealers should always consider whether or not they would be able to pay legal fees and compensation if a member of the public were to slip on a wet floor or loose cable on your premises, for example. ‘Value for money is not achieved by merely selecting the lowest available premium but by determining the quality of cover on offer,’ explained Georgiades. ‘Plan Insurance Brokers believe that the level of expertise and depth of the knowledge required to provide this service is only achievable by an insurance specialist.’ The employees of Plan Insurance are crucial to everything the company seeks to achieve. That’s

why the firm has received a gold standard award three years running from feedback company Feefo – a rating based on nearly 2,000 reviews. Significant amounts of time and effort are invested into their IT software that is developed in-house in order to streamline processes. However, technology is always used to improve customer experience rather than govern it. Plan Insurance Brokers were named Trade Insurance Provider of the Year at the Car Power Awards 2016 (see also p39). The awards are based on a nationwide survey of car dealerships and aim to highlight the best suppliers for traders to do business with. It’s a significant coup for Plan Insurance, who beat off stiff competition from the likes of global insurance powerhouses Allianz, NIG and previous winners Aviva. The company is well-established in the industry having been trading since 1989 but their resources are dwarfed by the household names they were up against. Ryan Georgiades, Managing Director, said: ‘We’re incredibly proud to be named trade insurance provider of the year. Our team works very hard to offer excellent service and to build strong relationships with our clients. ‘We want to thank all those that voted for us as well as our panel of insurers, as they enable us to provide such competitive rates. ‘As a company, we’re going from strength to strength and this award makes the effort even more worthwhile.’ by Sophie Williamson-Stothert (@1Sophie_W) CarDealerMag.co.uk | 89

Introducing The Used Car Product of the Year

WMS offer a range of regulated and non-regulated products and also an appointed representative facility free of charge subject to acceptance. If you want to generate more customers, improve retention and increase profitability across your used car operation, apply to offer the UK’s leading used car scheme, as endorsed by motor racing legend Sir Stirling Moss. Safe and Sound includes:

Sir Stirling Moss OBE Motor Racing Legend

Wear & tear warranty 24 hour rescue and recovery Vehicle safety inspection Provenance and mileage checks 24/7 operation so your customers can receive service at any time Regular contact and visits from our dedicated account management team Simple and quick claim submission, with all authorised claims paid within one working day – the industry’s fastest turnaround! Free and unlimited sales training Free point of sale and display materials, with the option of own-branded materials subject to volume Wide range of incentives for your customers And much more! Impro vin and ret g profit ma entio n since rgins 2003

The wa

rranty

Request a dealer pack at SafeandSound.co.uk or call our sales helpline on 01844 293810.

90 | CarDealerMag.co.uk

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FOCUS ON.

Car Dealer Power success

Generating more showroom inquiries WMS GROUP

WINNER

W: wmsgroupuk.com T: 01844 293 810

t the height of the digital age, it’s no longer about waiting for your customers to come to you; it’s about reaching out to your customers and giving them a reason to choose you. That’s why WMS is taking its services one step further, helping its dealers extend their reach to millions of people across the country. As a leader in providing extended dealer warranties, The WMS Group currently supplies a range of products to 3,500 dealerships across the country, designed to minimise vehicle downtime, improve retention, boost cash flow and create additional profit streams. One of these products is Safe and Sound. Endorsed by motor racing legend Sir Stirling Moss OBE and, more recently, former BBC Top Gear Stig Ben Collins, Safe and Sound encompasses a seven-element motoring package, which is supplied to customers free of charge. Safe and Sound incorporates a 60-point safety inspection, a full provenance check, which ensures the vehicle doesn’t have a hidden past, a six-month all-mechanical and all-electrical wear and tear ultimate car warranty protecting customers against expensive repair bills, and a sixmonth UK breakdown package, which includes 24-hour home and roadside repairs and recovery. By offering more than just warranties, the award-winning provider will soon be putting its Safe and Sound network in front of thousands of potential buyers, every day. What’s more, WMS will promote your business as one of the few exclusive dealers in the Safe and Sound network. ‘Where is better to buy a safe and sound vehicle than from a Safe and Sound dealer?’ said Eric Stone, business development director. ‘As far as I’m aware, we’re one of the few warranty companies actively increasing showroom inquiries. ‘Our latest campaign, which features Ben Collins, is designed to not only encourage more dealers to join our select Safe and Sound network, but to also drive customers to their forecourts and showrooms.’ Airing across eight channels, including Channel 4, Motors TV, Dave and Sky News, the TV campaign will go live from September. The advert will, effectively, provide free advertising for

Ben Collins is among those who have endorsed Safe and Sound from The Warranty Group more than 250 hand-picked dealerships. ‘We want car buyers to know that the smartest way to purchase a vehicle is via a Safe and Sound dealer,’ explained Stone. ‘However, we want to provide our dealers with more than just warranty services – we want them to know we’re here to support them and help put them in front of millions of potential customers across the UK. ‘We currently have a network of more than 250 Safe and Sound dealers, but we’re hoping to expand this to 400 in the coming months, to help accommodate the additional inquiries we’ll be generating via our campaign – but we’ll limit this to 500 to ensure it remains exclusive. ‘Joining the network allows us to grant dealers

James Baggott presents The WMS Group’s award to company representative Simon Miller

the advantage of their own territory, too. We’ll never have more than two or three Safe and Sound showrooms in the same city.’ WMS was named Warranty Provider of the Year at the annual Car Dealer Power Awards 2016, further endorsing its services. ‘We were thrilled to receive the Warranty of the Year accolade. We pride ourselves on being the dealers’ friend – a business partner who adds value to commercial relationships,’ said Stone. ‘We’re even giving our Safe and Sound dealers the opportunity to offer their customers extended warranties, in the form of interest-free monthly payments. This saves them having to pay the full amount up-front, and it’s yet another reason to purchase from one of our selected dealers.’ He added: ‘Our motto and key value is to treat customers respectfully, while also fulfilling our commitment to our dealers by helping to increase profits and cash flow. ‘With Safe and Sound, you can make a profit without a fee. We aim to ensure that a dealer’s customers remain satisfied long after the vehicle handover, delivering the best possible service at every stage – whenever they need their dealer. ‘We have established an award-winning programme and this year we aim to continue developing and pushing this further.’ [CD] by Sophie Williamson-Stothert (@1Sophie_W) CarDealerMag.co.uk | 91

FOCUS ON.

Wizzle

o you roll your eyes when the media whips up yet another story about dodgy dealers? We do. Not because we think the unscrupulous practices of a minority in the trade are excusable but because we know it’s only one side of the coin. The other side – which isn’t covered by the media – is dodgy customers. We’ve all known at least one. He’s the guy who brings his car in for the initial appraisal, then switches those quality alloys for a cheaper set of steel rims when he delivers it for the swap. Or changes that new battery for a much older one. It’s one of the trade challenges we had in mind when we created Wizzle. That’s the name of our new consumer-to-trade car selling platform, bringing honest consumers with good cars to sell together with dealers looking for good cars to buy. We know how time-poor many dealers are today. A busy sales period can really squeeze the time you have to source good, fresh stock. We also know that some of the big consumer-to-trade car purchase services hoover up thousands of cars that might otherwise have found their way to you through trade-in deals. So we created Wizzle – to help you get hold of good-quality stock, direct from consumers. It protects you from misleading condition descriptions and cuts out the extra costs added by a typical middleman. We launched on August 1 with 1,000 dealers already signed up and our first transaction – on the same day – connected Mazda dealer Carl Banfield, operations manager of Bourne Road Garage Ltd, in Crayford, Kent, with the nearby seller of an ideal car for stock. Banfield told us: ‘I saw a CX-5 that fitted our stock profile listed on Wizzle. The pictures and the condition description were clear, the car was only three miles away and the seller accepted my bid. It was a straightforward process. ‘Our first experience of Wizzle suggests it will be a useful additional channel for any dealer looking to find the right cars.’ Wizzle was built on industry-leading

‘‘

We’ve already got more than 1,000 dealers on board and hundreds of cars being listed. It’s going really well. Sebastien Duval

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A brilliant new way to buy stock WIZZLE

W: wizzle.co.uk T: 0845 862 0415

technology developed by AUTOi, whose digital appraisal system first revolutionised the process of approving claims on the AutoProtect insurance platform. The same AUTOi technology also powers the Manheim SureCheck appraisal and damage refund process. Key to the system’s efficiency and transparency is the integration of images into the appraisal. Standardisation of vehicle photographs and descriptions – based on all that experience – is key to the Wizzle offering. With a back office team vetting the quality of each vehicle record uploaded by consumers to the system, dealers are safe to bid with confidence. AUTOi’s confidence in the system means dealers only pay on successful results. That means a small fee on any successful transaction with no tie-in or on-going subscription costs for a standard Wizzle account. So how exactly does Wizzle work? Car Dealer caught up with Sebastien Duval, the founder of Wizzle and the well-regarded appraisal tool, AUTOi. Duval told us: ‘Dealers and consumers can sometimes be wary of each other but we make it simpler and safer for both parties in the cashfor-car transaction. Ultimately it brings greater transparency for everyone in the process.

Customers are carefully guided through the appraisal app and their car is then broadcast to our network of approved dealers. ‘It’s highly customisable for dealers too. They can tell the system to notify them when specific cars become available or they can treat it like an eBay or an Amazon and just browse the listings. ‘A full appraisal report, along with the photos and condition report, is then delivered to the dealer. The dealer can then ask the seller any questions with our messaging centre and make an offer that works for everyone. ‘If someone accepts an offer, you are sent the customer’s contact details to arrange collection and payment.’ Duval explained: ‘For the past four years, we have been specialising in vehicle appraisal systems. We’ve got dealers all over the country that use our software and we have a deep understanding of the industry. ‘What we have done – and this is an industry first – is use knowledge and experience to create a customer-focused appraisal tool. We are already seeing customers providing our dealers with photos and detailed appraisals that are much more honest than we’ve ever seen before. ‘Dealers get a detailed description as well six images of the car. A description has to be

provided for every part of the car. So the customer has to tell us about the true condition using the app that we’ve developed. ‘With all of the information the dealer needs to know to make an informed decision – and because it’s accurate, there’s less negotiation involved when they pick the car up.’ How has Wizzle been received? ‘The feedback so far has been amazing,’ Duval told us. ‘Everyone is really excited by it. We’ve got more than 1,000 dealers on board and hundreds of cars being listed – it’s going really well. ‘Our dealers really like the fact that the customer is not just there to value their cars, they are looking to sell there and then.’ He added: ‘All the appraisals end up on the AUTOi system where the dealers can bid on them and send messages direct to the customer’s phone. We’ve also got integration with CAP, HPI and Experian right on the platform to help give peace of mind.’ Something very important to the Wizzle team is the fact that they work on the fundamental principles of truth, honesty and transparency. Duval told us: ‘We came up with these core values from day one and we stay true to them. It’s a win-win between dealers and consumers.’

4 Buy direct from consumers 4 Small buyer’s fees on successful purchases only 4 Detailed appraisals complete with pictures and condition reports 4 Cut out middlemen 4 Avoid auction fees 4 No monthly subscriptions 4 Great-quality stock for all budgets 4 Improve your margins and stock turn What can dealers expect if they decide to work with Wizzle? The answer is a positive one – plenty of help and support from an experienced team who understand the automotive industry inside out. Duval has a degree in strategic automotive dealership management and has spent 10 years working for Mini and BMW, progressing his way from the shop floor through sales and brand management.

When asked about car-buying competitors, he said: ‘First and foremost, we’re automotive people who are passionate about helping people fix their problems and delivering results. ‘We have 15 people in the team at the moment. But we’re going through a significant growth phase and our workforce will probably double in the next six to 12 months. ‘Thanks to some investment, we have the resources to scale up our support and development teams so that we can really make an impact and improve dealers’ lives when it comes to stocking their forecourts. ‘With some car-selling websites, it’s all about volume. We’re not like that. Our customers have invested a lot of time into putting a detailed appraisal together. ‘Remember, the cars that dealers are bidding on have been vetted by us – and our customers have shown they are serious about selling by spending a lot of time preparing their advert. ‘We haven’t just sprung up out of nowhere, we’ve been perfecting this for more than four years and we’re here to stay. If dealers want to work with us, we’d love to help them put their stocking problems behind them.’ [CD] by Dave Brown (@CarDealerDave) CarDealerMag.co.uk | 93

DASHBOARD. FEATURE.

Ask Lawgistics .com

Car Dealer Club lawyers at Lawgistics answer dealers’ legal questions. Join for £39.99 a year to get advice like this when you need it

Trading standards want to come tomorrow!

I have just had trading standards on the phone asking if they can do a routine visit to my forecourt tomorrow. Do I have to say ‘yes’ even though I am due at an auction? JA, Coventry The simple answer to that specific question is ‘no’. If trading standards wish to make a routine visit to your business premises the next day, you are entitled to say no. Schedule 5 of the Consumer Rights Act 2015 tells trading standards that they should send a written notice to you giving at least two clear working days from the date of receiving the notice to their intended visit. The Act does say that they do not need to give notice if a trader waives their need to give it. This is probably why they rang asking to visit because if you agree to it, it avoids the need to write and post a notice giving you more preparation time. However, NO notice needs to be given if trading standards have reasonable grounds to believe that a trader has been committing any offences.

In that case, any visit is not a routine one but an investigatory visit during which they will look for additional evidence that may lend support to their belief that malpractices are taking place. If they have reasonable grounds to believe that they will be denied access, then trading standards are likely to come with the police and a search warrant issued by a magistrate. This will also be the case if they are coming to a premises that is your home. If trading standards do arrive, you are obliged to give them reasonable assistance with their inquiries. There is a specific offence of obstructing a trading standards officer but they only have the same ability to arrest you as a private citizen – a citizen’s arrest. When on-site, they can inspect your documents, break into containers and examine vehicles. More likely than not, they will be looking at your advertising, your disclaimers, invoices, what checks you make on a vehicle and quite

possibly they could bring a mechanical engineer to ensure that what you are offering for sale complies with the Road Traffic Act. In other words – is what you are selling roadworthy? If they find anything untoward or which requires further investigation, they can suspend the sale of a vehicle or even seize it. The same applies for paper documents but these can be copied and returned to you quite quickly. Always do what is asked of you even if you feel it is inappropriate. You may wish to make a call to Lawgistics where we can advise you and possibly speak with the visiting trading standards officer. Make a note of as much as you can as to what is said and how they have behaved. Sign nothing. You should also contact us if you get ‘followup’ communication, especially if it requests that you attend their offices to give a formal interview under caution. A lawyer from Lawgistics can sit in on such interviews to ensure ‘fair play’.

ADVICE

JOIN CAR DEALER CLUB AND GET ALL THESE BENEFITS WORTH £1,000s A free telephone consultation and other great benefits, too n A free telephone consultation worth £100. n Lawgistics’ Basic package worth £95. n Twenty-five per cent off the ‘pay-on-use’ legal helpline and casework service. n Up to 25 per cent off any stationery or warranty products. n Upgrade the Basic package and receive £100 off the Small Business package or £250 off the Professional package.

94 | CarDealerMag.co.uk

Receive a month’s free management when you book a three-month pay-per-click campaign Autoweb Design has achieved exceptional results with automotive pay-per-click (PPC) campaigns and is a recognised Google Partner. PPC is a hugely successful way to advertise your business and stock online, targeting relevant customers and widening your digital reach. That’s why we’re offering Car Dealer Club members an exclusive deal of one month’s free management when they book a three-month PPC campaign with us. We’re sure you’ll see fantastic results.

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

Exclusive five per cent discount on your tailormade trade insurance At Unicom, we’ve been safeguarding our clients with the best protection policies for more than 20 years – so, no matter what role your business plays in the motor trade, we can have you covered for every possible risk. From road risks to legal cover, your motor trade insurance can be tailored to suit your individual needs. It’s our job to make sure that you get the best price for the cover that you want.

Q A

What is an ‘on-premises contract’? For the purpose of The Consumer Contract (Information, Cancellation and Additional Charges) Regulations 2013, this means a contract between a trader and a consumer which is neither a distance contract nor an offpremises contract. Under section 9(1) of the Regulations, before the consumer is bound by an on-premises contract, the trader must give or make available to the consumer the information described in Schedule 1 to the Regulations, in a clear and comprehensive manner, if that information is not already apparent from the context of the transaction. The information should include (a) the main characteristics of the goods or services; (b) the identity, address and telephone number of the trader; (c) the total price of the goods or services; (d) if applicable, details of delivery charges; (e) if applicable, arrangements for payment/delivery/performance and time for delivery; (f) if applicable, the trader’s complaints policy; (g) if applicable, a reminder of the trader’s legal duty to supply goods that conform with the contract; (h) if applicable, aftersales service and commercial guarantees; (i) if applicable, the duration of the contract or conditions for termination.

WHY I JOINED CAR DEALER CLUB

‘Letters and emails from Lawgistics have helped me deal with a tricky situation’ IN almost 30 years with Springfield Autocare & Car Sales, Gary Popham had never experienced a serious problem with a customer. That was until recently, when someone who had purchased a Mini Cooper from the Essex-based dealership asked for his money back on the vehicle under the Consumer Rights Act 30 days right-to-reject clause. The customer in question contacted Popham, the MD of the dealership, 28 days after buying the vehicle. He claimed that the 2007 model had a number of faults. ‘After writing a great review for us two days after the sale, the customer emailed us saying that the boot now wouldn’t open manually – only via the key; the central locking intermittently wouldn’t open from the passenger side and a warning light had come up on the dash,’ Popham explained. ‘These problems weren’t there when he bought the car because he drove quite a distance home and wrote me a good review two days later. So they’d developed over the time he’d been using it,’ he added. Popham told the customer that

the faults would be covered by the six-month RAC warranty that the dealership provided, if he took the vehicle to a local garage. However, the customer decided that he would rather return the vehicle for his money back. Popham offered to recover the car to his dealership and fix the issues himself, but the customer again refused. ‘He basically said we’ll take you to the small claims court straight away for our money back,’ Popham added. With the support of Lawgistics, the 44-year-old is prepared to stand his ground – and is grateful for the help provided by the firm. ‘The letter and emails that Lawgistics have written for us have been well worth my fee,’ he added. ‘I’m very pleased with their service and it gives me peace of mind that they’re the professionals.’

WANT TO UPGRADE? LAWGISTICS’ Basic membership – which you receive as a member of Car Dealer Club – is a cracking deal, but what if you need something that has extra clout? Larger dealer groups or a dealer embroiled in a big legal battle may require some more firepower, and the good news is that club members get discounts on Lawgistics’ other packages. You’ll receive a £100 discount off the Small Business package (normally £695) – perfect for sole traders, a partnership or a small dealer group – and £250 off the Professional package (normally £1,295). This is ideal for franchises, a dealer group or a car supermarket and covers all areas of legal law and documentation. There really is a package for everyone with Lawgistics.

EASY STEPS TO JOIN 1. GO TO CARDEALERCLUB.COM

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

Want to create your own mobile app but don’t know where to start? Then work with the app development company that has created Car Dealer Magazine’s successful apps. App Creatives is behind the highly esteemed Car Dealer iPhone and iPad apps. It’s an expert in app design and development, and the good news for Car Dealer Club members is that they get an exclusive 10 per cent discount on App Creatives’ services, including creating an app that’s perfectly tailored to your requirements by the firm’s experts.

At Paragon Car Finance, we’re so confident we can better the deals and improve the service other lenders offer that we want to give £50* to all eligible Car Dealer Club members who book an appointment with us to see how Paragon Car Finance could help you and your customers get a better deal. Book your £50* appointment now by calling us on 0345 149 7777.

3. FILL OUT YOUR PAYMENT DETAILS ON PAYPAL AND HIT SUBMIT 4. WAIT FOR YOUR CAR DEALER CLUB PACK TO ARRIVE IN THE POST 5. OR PHONE 023 9252 2434 AND SPEAK TO ONE OF THE CAR DEALER TEAM

* Terms, conditions and eligibility rules apply. Visit cardealerclub.com/#benefits for more details.

Dragon2000 CarDealerMag.co.uk | 95

DATA FILE.

Thestatistics

SMMT Sales Data

Taking Stock

Brexit puts brakes on growth in new car registrations

The market is finally showing signs of cooling off, confirms the SMMT

K new car registrations ‘cooled off’ in the wake of the Brexit vote, increasing by less than 0.1 per cent in July, according to figures released at the start of August by the SMMT. A total of 1,599,159 new cars have been registered so far this year, meaning demand in the year-to-date has been 2.8 per cent higher than for the same period in 2015. This is largely attributable to the strong first quarter the market enjoyed. But in the wake of the UK’s decision to leave the European Union, and taken in isolation, July’s tiny increase of 0.06 per cent was markedly down on the overall figure for the full first half of the year – a far healthier 3.2 per cent. And July followed the trend seen so far this year whereby lower levels of private registrations were offset by the level of fleet purchases, which increased by five per cent. Interestingly too, England was the only part of the United Kingdom that showed an increase in registrations year-on-year. Registrations were

down by around eight per cent in Scotland and Northern Ireland and by almost five per cent in Wales. UK-wide demand for alternativelyfuelled vehicles remained strong in July with 24.7 per cent more registrations being recorded compared with the same month in 2015. Mike Hawes, above, SMMT chief executive, said: ‘After a healthy start to 2016 and record registrations in 2015, the market is showing signs of cooling. ‘The automotive market is a vital part of the British economy and it’s important the government delivers the economic conditions which instil

business and consumer confidence. ‘With low interest rates, attractive finance options and exciting new models coming to showrooms, the market still has lots to offer customers.’ Richard Jones, managing director at Black Horse, one of the UK’s leading motor finance providers, and part of Lloyds Banking Group, said: ‘July’s figures show resilience for the industry against a backdrop of challenging economic conditions. Ongoing uncertainty doesn’t seem to have impacted new car sales, but the remainder of 2016 will bring further challenges and we might well see this reflected in more modest sales figures.’ The increasing popularity of alternatively-fuelled vehicles has been welcomed by the government. Transport minister John Hayes said: ‘I am delighted to see record numbers of motorists coming round to the benefits of cleaner, greener vehicles. ‘The low-emission sector supports over 18,000 UK jobs and is a key pillar in our ambition for a low-carbon, hightech and high-skills economy.’

Weeks ahead will be interesting, says Pontin RUPERT Pontin, Glass’s director of valuations, said the July figures were ‘broadly in line’ with his company’s expectations. He added: ‘It is good to see that the market appears to be holding its own for the moment in a general climate of consumer concern. ‘However, it is important to note that private vehicle registrations have dropped noticeably this month. ‘This is becoming a bit of a trend 96 | CarDealerMag.co.uk

and something that reflects anecdotal market commentary gathered by our editorial team. ‘Consideration must also be given to the fact that many cars are on six- to 10-week lead times at the moment and the market may be seeing the tail-end of vehicle orders placed in the run-up to the referendum and therefore prior to the Brexit announcement. ‘As such, the market may well be

weaker than the figures suggest, a point that has not been lost on the Bank of England who are concerned enough to have dropped the bank base rate and indicated a further reduction may be needed before Christmas. ‘The stability of the new cabinet under a new prime minister and the drop in interest rates may well be enough to keep the market level but the coming weeks will be interesting.’

SMMT sales data July/year to date

Top

Most-improved manufacturers in July

Infiniti +191% Land Rover

+73%

Jeep +71% Bentley

+62%

DS +54%

Bottom

Worst-performing manufacturers in July Lotus -97% Porsche -45% Aston Martin -34% Renault -31% Mitsubishi -26%

RENAULT -31%

MASERATI +24%

Marque Abarth Alfa Romeo Aston Martin Audi Bentley BMW Chevrolet Chrysler Citroen Dacia DS Fiat Ford Honda Hyundai Infiniti Jaguar Jeep Kia Land Rover Lexus Lotus Maserati Mazda Mercedes-Benz MG MINI Mitsubishi Nissan Peugeot Porsche Renault SEAT Skoda smart SsangYong Subaru Suzuki Toyota Vauxhall Volkswagen Volvo Other British Other Imports Total

July 2016

2016

180 433 45 11,582 188 9,699 0 0 4,311 1,386 1,211 3,506 22,247 3,886 6,093 399 2,639 1,182 7,417 4,882 774 1 131 2,692 11,650 305 3,026 1,186 9,944 6,916 636 3,782 3,154 5,825 873 293 148 2,885 5,333 19,733 14,038 3,629 56 227 178,523

% market share 0.10 0.24 0.03 6.49 0.11 5.43 0.00 0.00 2.41 0.78 0.68 1.96 12.46 2.18 3.41 0.22 1.48 0.66 4.15 2.73 0.43 0.00 0.07 1.51 6.53 0.17 1.70 0.66 5.57 3.87 0.36 2.12 1.77 3.26 0.49 0.16 0.08 1.62 2.99 11.05 7.86 2.03 0.03 0.13

July 2015

2015

160 306 69 13,004 116 9,385 3 2 5,496 1,040 782 4,693 24,115 3,547 6,168 137 2,388 691 5,857 2,822 828 39 105 3,008 10,127 237 3,123 1,622 9,912 7,077 1,177 5,499 3,190 6,576 661 397 167 2,045 6,251 16,899 15,503 3,016 58 122 178,420

% market share 0.09 0.17 0.04 7.29 0.07 5.26 0.00 0.00 3.08 0.58 0.44 2.63 13.52 1.99 3.46 0.08 1.34 0.39 3.28 1.58 0.46 0.02 0.06 1.69 5.68 0.13 1.75 0.91 5.56 3.97 0.66 3.08 1.79 3.69 0.37 0.22 0.09 1.15 3.50 9.47 8.69 1.69 0.03 0.07

% change 12.50 41.50 -34.78 -10.94 62.07 3.35 0.00 0.00 -21.56 33.27 54.86 -25.29 -7.75 9.56 -1.22 191.24 10.51 71.06 26.63 73.00 -6.52 -97.44 24.76 -10.51 15.04 28.69 -3.11 -26.88 0.32 -2.27 -45.96 -31.22 -1.13 -11.42 32.07 -26.20 -11.38 41.08 -14.69 16.77 -9.45 20.32 -3.45 86.07 0.06

2016 2,185 3,138 512 101,103 1,149 101,309 3 0 42,092 14,831 10,647 36,830 193,439 36,335 54,170 1,964 19,236 8,782 53,760 47,441 8,190 141 843 29,073 100,253 2,201 36,989 11,730 88,526 61,692 7,348 48,352 27,788 48,058 6,616 2,635 1,976 22,829 59,837 152,680 123,604 26,258 479 2,135 1,599,159

Year-to-date (YTD) % market share 0.14 0.20 0.03 6.32 0.07 6.34 0.00 0.00 2.63 0.93 0.67 2.30 12.10 2.27 3.39 0.12 1.20 0.55 3.36 2.97 0.51 0.01 0.05 1.82 6.27 0.14 2.31 0.73 5.54 3.86 0.46 3.02 1.74 3.01 0.41 0.16 0.12 1.43 3.74 9.55 7.73 1.64 0.03 0.13

2015

1,238 2,918 565 99,013 848 89,748 7 131 50,979 15,503 1,576 37,369 201,265 31,200 52,911 746 12,270 6,045 48,105 38,986 7,757 226 883 26,556 84,930 1,907 34,427 14,812 93,335 64,414 7,369 42,339 30,517 46,044 4,181 1,752 1,834 19,732 60,196 159,333 135,567 24,172 437 1,166 1,555,309

% market share 0.08 0.19 0.04 6.37 0.05 5.77 0.00 0.01 3.28 1.00 0.10 2.40 12.94 2.01 3.40 0.05 0.79 0.39 3.09 2.51 0.50 0.01 0.06 1.71 5.46 0.12 2.21 0.95 6.00 4.14 0.47 2.72 1.96 2.96 0.27 0.11 0.12 1.27 3.87 10.24 8.72 1.55 0.03 0.07

% change 76.49 7.54 -9.38 2.11 35.50 12.88 -57.14 0.00 -17.43 -4.33 575.57 -1.44 -3.89 16.46 2.38 163.27 56.77 45.28 11.76 21.69 5.58 -37.61 -4.53 9.48 18.04 15.42 7.44 -20.81 -5.15 -4.23 -0.28 14.20 -8.94 4.37 58.24 50.40 7.74 15.70 -0.60 -4.18 -8.82 8.63 9.61 83.10 2.82

Figures supplied by SMMT

CarDealerMag.co.uk | 97

98 | CarDealerMag.co.uk

TAKING STOCK. Remarketing specialist BCA analyses its latest Pulse report to give its thoughts on matters that are important to dealers for the months ahead

Used car values bouncing back – but buyers are becoming more selective Supply and demand remained well balanced, with conversion rates improving in July, says Simon Henstock, BCA’s chief operating officer for the UK

ollowing a dip in June, used car values bounced back in July, according to the stats contained in our latest Pulse report. The headline average value of a used car rose from £8,198 in June to £8,341 in July, an increase of £143 (1.7 per cent) and the highest average monthly value on record. Both fleet/lease and dealer partexchange values remained at near record levels, while nearly-new values increased. Year-on-year, the headline figure was up by £635, equivalent to an 8.2 per cent increase in average values. However, model mix had a role to play as higher-value ex-fleet stock increased market share over the month. Supply and demand remain well balanced, with conversion rates improving in July, despite the typical summer slowdown that the market experiences once the annual summer holiday period gets under way. Sales were well attended throughout BCA’s 23-strong auction network in July and online bidding was strong, but it was noticeable that buyers were being more selective about condition, preparation and presentation. To maintain desirability and sales performance, vendors can use SMART repairs for those cars that have suffered low-level cosmetic damage in the shape of car park dents, stone chips and damage to alloy wheels. Current market conditions make it even more important to ensure vehicles are properly appraised and sensibly reserved. There is little to be gained by over-valuing cars,

particularly when there is increasing competition for the buyer’s wallet. Looking at the average price performance by model shape, values for volume stock generally increased by a small margin, with only coupes and convertibles falling back during the month. Values in the fleet and lease sector were effectively static in July, down by just £4 at £9,665 compared with £9,669 the previous month. Retained value against original MRP (manufacturer’s retail price) fell marginally to 41.1 per cent in July from 41.93 per cent in June.

Headline average value of a used car

£8,341

Year-on-year values were static, with age falling by one month and mileage down by 3,000. Average values for dealer part-exchange cars were also flat, down by just £12 over the month at £4,495 – but still the secondhighest average value on record for dealer PX stock. Year-on-year values were ahead by £217 (five per cent), with age static and mileage declining. Nearly-new values improved in July to £21,339 from £20,042 in June, although model mix has a significant effect in this low-volume sector. Values were slightly ahead year-on-year. CarDealerMag.co.uk | 99

Average value for dealer part-exes

£4,495

AUCTIONS.

Midweek calls are car dealers’ most missed, says Moneypenny bit.ly/calls-102

Henstock AUCTION STATIONS

We can help make it a successful September

T Relationship renewed James Tomlinson says his company is undergoing a significant period of growth

with The Car People

Motor Auction Group celebrates new two-year deal

he Motor Auction Group (MAG) has relocated to a seven-acre site in Rotherham to accommodate rapid growth in the business, and has been rewarded with a renewed two-year deal with existing customer The Car People, as well as a further four new contracts within weeks of the move. The rapidly expanding business has signed a deal that will see in excess of 10,000 part-exchange vehicles from The Car People’s Wakefield, Sheffield and Manchester car supermarkets going under the hammer during the contract. This volume is expected to increase significantly with the opening of The Car People’s Warrington site this year.

James Tomlinson, managing director of MAG, said: ‘We are delighted to renew our relationship with The Car People. We have a shared dedication to excellence, and understand how to quickly and efficiently maximise part-exchange values. ‘This two-year deal will enable us to align our business processes ever more closely.’ MAG, formerly Bawtry Motor Auction, relocated to new premises in Greasbrough Road, Rotherham, following a £500,000 investment in refurbishment of the site. The new facility, which is more than twice the size of the old Bawtry site, boasts a dedicated 15,000 sq ft auction room, sale display for more than 400 vehicles, and parking for 150 customer cars.

BCA strengthens its network with job moves BCA has strengthened its national auction network with a number of key appointments. Stuart Beith is promoted to the position of regional operations director (Scotland) and Eddie Thomson assumes the new role of sales director (Scotland and North East). The move also sees Simon Gent,

regional operations director (North) take responsibility for Belle Vue, Brighouse, Leeds, Newcastle and Preston. Robin Wilde, regional operations director (Midlands) adds Perry Barr and Wolverhampton to his portfolio, along with Birmingham, Walsall, Measham, Derby, Nottingham and Peterborough.

he forthcoming September plate change is a highly anticipated event and the 66-registration plate will undoubtedly generate a superb selection of vehicles into the used market. At this busy time for the dealer sector, BCA has everything in place to ensure great results. For buyers, BCA will offer the widest choice of stock, both online and through our 23 auction centres nationwide with every vehicle appraised, graded, imaged and catalogued online via our Auction View service. BCA will run an enhanced sale programme for dealer part-exchange vehicles, and fleet, lease and contract hire vehicles, meaning our buyers can access the very best selection of retail-quality stock anywhere in the UK. Our enhanced Search makes stock location simpler and every vehicle in our physical auction programme is also offered via BCA Live Online. Customers can also make payments and book delivery online. And to make the most of all the opportunities this September plate change, BCA Partner Finance – the vehicle stocking service – will help customers to buy more, stock more and sell more used vehicles. BCA Partner Finance helps independent car and van dealers secure incremental funding to allow them to expand their retail operations. BCA also helps dealers with their part-exchange programme at this busiest time of the year. As well as standardising vehicle appraisals in a professional and customer-friendly manner, BCA Dealer Pro provides accurate market valuations, captures retail-quality photographs and manages a dealership’s part-exchange inventory and vehicle disposals. It is a unique package of tools for dealers within the remarketing sector, marrying best-in-class business practices with easy-to-use-technology that is integrated within their existing systems, supported by robust data. BCA will be the place to be this September.

Who is Simon Henstock? ‚

He is BCA UK s Chief Operating Officer – Remarketing. Visit bca.co.uk or call 0845 600 6644.

ROCKINGHAM AUTOMOTIVE DEFLEET & REMARKETING CENTRE VEHICLE REMARKETING SERVICES 1. Logistics Our dedicated collection team are experienced in all forms of vehicle movement from doorstep inspection/ collection featuring detailed damage costings supported by digital images signed by the customer to the more standard movement of single or multi vehicle transporter load. With six strategically positioned UK wide drop off locations we have the ability to cover the England, Scotland, Wales and Ireland regions for all aspects of recovery. 2. Inspection On arrival all vehicles are inspected to the NAMA grading standard, the standard you can trust. This nationally defined scheme will enable the best possible prices to be achieved. Vehicles of specific grades will attract certain buyer groups therefore ensuring that vendors obtain the best audience both physically and online. The transparent grading of used vehicles within the industry has encouraged growth in the online buying practices of major motor retailers at all specialist corporate fleet sale events. 3. Presentation Every vehicle is presented to a retail clean standard to ensure the best possible financial return is achieved. This small investment is an essential ingredient to the overall result for the corporate vendor. The vehicle presentation takes place immediately prior to digital imagery of vehicles which are then uploaded to website and smartphone applications for marketing purposes.

100 | CarDealerMag.co.uk

3 UK wide inspection and collection service at competitive pricing 3 Strategically positioned central hub to provide nationwide single centre sale events 3 Every vehicle presented to a retail clean standard 3 Expert refurbishment programme tailored to your needs 3 300 acres of secure hard standing vehicle storage

3 Established auction programme to suit both corporate and dealer group part exchange 3 State of the art Online Centre to offer vehicles 24/7 direct to marketplace 3 Asset Recovery System – digital platform to track, recover and remarket the asset 3 Fleet Management Department – Experienced, knowledgeable and dependable

For further information please contact Michael Tomalin 07808 791210 or email mt@cityauctiongroup.com

Rockingham Speedway, Mitchell Road, Corby NN17 5AF

www.cityauctiongroup.com

£500 WITH YOUR NAME ON IT JUST REFER A FRIEND

With every referral you make for either our NetDirector® Auto or NetDirector® Auto Lite, we’ll give you £50 off your own licence subscription. And with a generous allowance of up to ten referrals you could earn up to £500 every month. The most advanced website software in the automotive industry isn’t something you need to keep to yourself. With our new referral scheme, it really does pay to spread the word. To refer a friend and view full terms and conditions please visit www.gforces.co.uk/refer-a-friend or call 0844 846 4767

CarDealerMag.co.uk | 101

STREAMLINE YOUR SALES PROCESS Discover the power of our Mobile Finance Calculator and Credit Indicator. Theyâ&#x20AC;&#x2122;re designed to help you spend more time with your customers and less time at your desk.

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102 | CarDealerMag.co.uk

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MARKET INSIGHT.

..in association with ASE-global.com

Robust results help share prices recover post-Brexit But we’re a long way from any certainty around our trading environment, says Adam Cottam

hilst the political landscape has become clearer post-Brexit, there is still a long way to go before the trading environment is considered certain. Share prices across the motor retail sector have recovered, and in some cases increased considerably, as they concentrate on doing what they do best – selling cars, parts and hours. Vertu and Inchcape released robust midyear results, which have no doubt helped their respective share price recoveries. It is yet to be seen how the growth plans of UK motor retail businesses will take shape following the June 23 decision and no transactions took place in July involving those quoted on a UK equity exchange. Share price performance The share prices for listed motor retail groups recovered slightly in July, with Vertu’s equity prices increasing significantly. This is perhaps evidence that it is business as usual for the UK motor industry following Brexit. The UK equity markets have recovered in the wake of the UK’s decision to vote leave in the EU referendum. The FTSE 100 has recovered, as has the FTSE 250 which is a more representative yardstick of confidence in UK businesses. The pound is still very weak, however, compared to the Euro and Dollar which has benefited manufacturers based in Britain but had the opposite effect for those manufacturers selling into the UK. There have been no significant moves by the vehicle manufacturers to mitigate the exchange rate risk, and it remains to be seen whether vehicles will prove to be more expensive for UK importers, dealers and consumers. In recent days, the UK’s growth forecasts have been cut, and interest rates reduced to a record low, a move which, in tandem with a package of quantitative easing, is designed to prevent another recession. Despite the negative noise surrounding these measures, the UK economy is still in strong shape to deal with the challenges it faces in the coming months. Financial performance We had two full sets of results during July.

Share price movement from January 1 to July 29, 2016

Share price movement from January 1 to July 7, 2016

Pendragon

67.7%

62.4%

Vertu

62.9%

50.8%

Lookers

57.6%

50.8%

Inchcape

85.9%

81.8%

Cambria

86.9%

81.3%

Caffyns

96.3%

93.6%

Marshall

83.5%

83.7%

Firstly, news of Vertu’s financial performance was published as part of their AGM Statement. Gross profits were up nine per cent with the primary drivers being aftersales and used.

There is a clear move away from new car sales, with registrations continuing to slow across the country. Strong growth in used was reported, with volumes up 27.4 per cent year-on-year. The majority of the £35m share placing has now been deployed and so the benefits of the most recent acquisitions will start to increase over time. Inchcape released their H1 results which showed solid growth despite recent market uncertainty. Adjusted profit was up eight per cent, underlying profit up seven per cent and revenue was up 11 per cent year-on-year. One of the drivers of the positive variances was European performance, which was particularly strong in Greece, Belgium and Finland. It is too early to determine the impact of Brexit on its UK results given only five trading days were included in these results.

Who is Adam Cottam? He’s corporate finance executive at dealer profitability specialist ASE plc. You can read ASE’s column here every month. CarDealerMag.co.uk | 103

104 | CarDealerMag.co.uk

RECRUITMENT.

Two appointments made to Big Cars’ management team

SSANGYONG

Steve is looking for new dealers

STEVE Prew has been appointed by SsangYong Motor UK to lead the brand’s dealer recruitment programme. Wallman joins from Mercedes-Benz With a wealth of sales, Retail Group, where she was group market development and marketing manager. service delivery experience, Wallman said: ‘Big Cars is a prime Prew joins SsangYong after six example of a business that has years with Fiat Professional in national and regional sales achieved great success by breaking the management, and a career mould. Its achievements in the use of spanning senior positions social media to engage customers and at Mercedes-Benz and generate sales sets it apart in motor Volkswagen dealerships, as retail and I’m really looking forward well as being head of activities to the challenge of helping take this at Silverstone Circuits. He is a dynamic business to the next level, Fellow of the Institute of the through innovative and creative Motor Industry. marketing strategies.’ Paul Williams, CEO of Adam Stott said: ‘Julie and Lee SsangYong Motor UK, said: ‘I am delighted to welcome bring extensive knowledge and Steve to SsangYong. experience from their time in ‘We are looking to grow automotive retail, enabling us to the number of SsangYong benefit from their skills and insight. dealers right across the UK, ‘It’s an exciting time for Big Cars and improve the network’s and I’m delighted that they’ve joined professionalism.’ MMG advert_Layout 1 26/07/2012 15:29 Page 1 us on careers our journey.’

New recruits have extensive knowledge and experience of automotive retail

ssex-based independent used car dealer, Big Cars, has made two appointments to its management team. Lee Pembroke joins the company as sales director and Julie Wallman has been recruited as head of marketing. Trading from showrooms in Chelmsford and Witham in Essex and Addlestone in Surrey, Big Cars predicts a turnover of £40m in 2016 and a further increase in net profitability, which in 2015 was 97 per cent. A trailblazer within the industry for its effective use of social media, Big Cars has sold more than £50m worth of used cars using Facebook in just eight years. The company has more than 340,000 followers on the platform and generates more than 1,000 leads per month through its

social media channels, which also include Twitter and Snapchat. The new appointments come at a time of further expansion for Big Cars, which was founded in 2008 by 33-year-old entrepreneur and former car salesman, Adam Stott. The business will open its fourth site in September, in Sudbury, Suffolk. Prior to his arrival at Big Cars, Pembroke was a director of Toomey Motor Group, whilst

Only

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need apply! Marshall Motor Group is part of a unique family owned group of companies with a turnover approaching £1bn (35% growth), with interests also in the aerospace and ground systems sectors. We celebrated our Centenary in 2009 and we are still growing in size.

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At Marshall, wherever we work, we all play a big part in ensuring that our sales and profit targets are met, not least by providing our customers with a fantastic level of service which means identifying their needs, and responding to them quickly.

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With our strong customer centric and people focus it is not surprising that we have received some enviable accolades including "Dealer Group of the Year" and being shortlisted for "Employer of the Year" and we are committed to building on our achievements to date. We are looking for talented automotive professionals to join our team. If this is you and you share our passion for being the best then you can look forward to a great benefits package, the chance to build on your skills and experience with ongoing training, plus all the encouragement and support you need to develop a rewarding, long-term career with us. Please go to

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to find out more about the Group and see our current vacancies.

CarDealerMag.co.uk | 105

DATA FILE.

Jon Reay

A VIEW ON THE NEWS

Could dieselgate be the making of VW?

es, I know – you’re all bored of hearing about the fallout from Volkswagen Group’s emissions scandal. I am as well, quite frankly, and it seems as though the public is, too. As much fun as the media has had with the saga, it’s becoming pretty apparent that car buyers really aren’t that fussed – with each additional hyperbolic news story seemingly having less impact than the ones that came before it. It’s a sentiment backed up by dealers. As many as we quiz on the subject, the consensus is the same: It’s very much business as usual across the network. That said, Volkswagen’s image has undoubtedly taken a hit. But enough of that. I reckon the whole debacle could prove to be a turning point for the group. Things are a-changing in the automotive world, and fast. Car manufacturers have always struggled to keep up with the incredibly fast-paced tech industry, but the second half of this decade is where we’ve really seen the two start to collide. It seems appropriate then that one of the biggest disruptors of the industry has come from a company heavily rooted in technology: Tesla. While other car manufacturers have been faffing around with electric cars in the background for years, Tesla was one of the first to really throw its weight behind making a range of fully electric cars that weren’t only practical and (relatively) affordable, but also desirable. There’s nothing to stop any other car manufacturer doing exactly the same thing, of course, but most haven’t; presumably because they think they don’t have to. No group of shareholders is going to approve heavy investment in electric vehicles when conventional ones are selling just fine. Enter Volkswagen. A brand tarnished by scandal needs to change in order to survive, and what better way of pacifying the ‘ban-the-diesel’ placard-wavers than to start afresh and concentrate on a super-eco-friendly range of cars? Happily, it looks like that’s exactly what it’s decided to do. Last month, the maker pledged to start adding particulate filters to even (relatively) clean petrol engines from 2017 onwards – and, far more importantly, it now wants to be ‘second to none’ in the industry for electric cars by 2025, by which time it’ll have more than 30 full EVs across the group. It’s impossible to say how much of this is a direct result of dieselgate, but has VW’s sudden commitment to electrify half its portfolio come out of nowhere? Seems unlikely, doesn’t it? So there you have it: the scandal that threatened to shake the world’s biggest car maker to the ground could well be the thing that saves its bacon later down the line. When life gives you lemons… make a range of EVs.

‘A brand tarnished by scandal needs to change to survive.’

Who is Jon Reay?

Jon is multimedia manager at Blackball Media, and standing in for regular contributor James Litton, who is away this month. 106 | CarDealerMag.co.uk

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Friday-Ad

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Website Design & Digital Marketing

Maguires Garage

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W: fridaymediagroup.com T: 01273 837855 E: MotorsTeam@fridaymediagroup.com Info: An automotive classified site that exposes used car dealers to more than 200,000 unique car buyers a month. Detailed search functionality helps drive leads.

W: citnow.com T: 0118 997 7740 E: reply@citnow.com Info: CitNOW is the UK’s largest provider of personalised video presentation services to the automotive industry. More than 3,500 live installations worldwide.

The UK’s Best Used Car Warranty

W: wisedealer.co.uk T: 01254 355104 E: dealers@warrantywise.co.uk Info: Provide your customers with the UK’s best used-car warranty, designed by Quentin Willson.

W: wmsgroupuk.com T: 01844 293 810 E: dealers@wmsgroupuk.com Info: Open 24/7, we offer award-winning warranty products for FCA- and non-FCA registered dealerships.

W: gforces.co.uk T: 0844 247 4523 E: info@gforces.co.uk Info: The leading provider of automotive web software and full service marketing, working globally with OEMs and more than half of the UK’s top 200 dealers.

W: goldsanddigital.com T: 020 7287 9233 E: info@goldsanddigital.com Info: Build a high-quality pool of hot leads, avoid fatiguing your database and create marketing your customers will love.

Vehicle Inspections

Warranty

Website Design & Digital Marketing

AA Cars

Car Care Plan

Spidersnet

W: theAAcars.com T: 01920 252054 E: enquiries@theaacars.com Info: The AA is a trusted brand, so let us help you expand your business with vehicle inspections, AA branding and advertising on our used car site.

W: carcareplan.com T: 0344 573 8000 E: salesinfo@carcareplan.co.uk Info: The market-leading supplier of warranty, asset protection and cosmetic repair products protecting 1m customers every year. We work with manufacturers, dealer groups and independents across the world.

W: spidersnet.co.uk T: 01273 837560 E: support@spidersnet.co.uk Info: Award-winning website solutions plus services to help drive leads to dealers’ doors. The specialist team are dedicated in assisting new and used operations reach their full online potential.

Midweek night out ended in kebab crisis

hadn’t been at my new place of work – a dealership that shall remain unnamed – for very long before things took a turn for the worse. Against my better judgment, my new colleagues persuaded me to go out for a midweek drink. Thinking of it as a good way to learn names and work my way into the group, I obliged – how could one drink hurt? But things spiralled quickly, and with the ins and outs of the dealership traded for each drink, I found myself well past the level of sensible merriment for a ‘school’ night. Waking up the following morning, I knew almost immediately that I’d made a poor decision. Head banging and stomach aching, I quickly put on the suit that I’d bought specially for the job – lying discarded in a pile on my bedroom floor – and headed out to the dealership. Showroom lights making my head ever worse, I managed to put a brave face on, even though I was sure that the customers coming through the door could see something was up. I’d been told by my manager that a customer who was extremely interested in our cars was coming in shortly, but that he was a large chap – more than 6ft 3in tall, in fact. Because of this, my manager wanted me to adjust every driver’s seat so he could fit in them without having to move about. Around three cars in, I started to experience that horrible, nauseous feeling I’m sure you’ll be familiar with. Leaning into that third car, I was hit with the awful smell of strong air freshener and it turned my stomach immediately. I retched, and the only place for it to go was the car’s armrest compartment. Panicking, I slammed the compartment closed and ran to the toilet. Around an hour later, the customer in question arrived. Taking an instant liking to my sick-riddled car, he announced that he’d only buy that car – and wouldn’t take no for an answer. My manager, keen to keep the chap happy, said that wouldn’t be a problem. Later that afternoon, the extremely tall man drove away content – but with the remnants of a kebab sitting underneath his left elbow...

‘Around three cars in, I started to experience a nauseous feeling.’

Tell us your story

Have you something to confess? We’d love to hear your tale of woe. Email the features editor (you can find her details on page three) or post them on our forum – simply type cardealermagazine.co.uk/forum into a web browser and get confessing! CarDealerMag.co.uk | 107

KEY NOTES

..in association with Traka

Brexit: Feeling positive? Dealerships will be watching out for evidence of economic fallout, says Paul Smith

he dearth of evidence proving or disproving Brexit’s lasting effects on UK prosperity has not curtailed speculation over how its financial impacts will play out. However, because the automotive market benefits from strong trade links with many EU member states, there has been no shortage of concern over recent weeks. Yet while the possible effects of Brexit on Britain’s car makers and drivers have been much mulled over, the implications for its car retailers have received less punditry. This is surprising given that dealers are often caught in the cross-currents when the winds of economic change hit us. Take for example Glass’s prediction that we will see new car sales falling markedly as early as Q4 2016. Others expect numbers to fall from early next year. What is a ‘known known’ meanwhile, is that automotive sales today are shaped by more than just the number of sold vehicles driven out of showrooms. The value-added services wrapped around new car transactions and aftersales servicing throughput are arguably even more important for dealer principals with a beady eye on their balance sheets. Some evidence suggests that dealers were more upbeat about Brexit than might be expected. More than half of UK dealership sales staff admitted to voting in favour of Brexit, according to a pre-referendum poll of more than 300 frontline sales executives, sales managers and senior directors conducted by Dealerweb. A healthy majority, 58 per cent, said that they would vote ‘Leave’, 25 per cent ‘Remain’, leaving 17 per cent of dealer staff undecided in the runup to June 23. Asked whether they thought UK vehicle sales

would be affected by leaving the EU, replies were more balanced: 36 per cent opined that Brexit would have a ‘positive impact on new and used car sales’, while 29 per cent reckoned that leaving would have a negative effect, leaving 35 per cent ‘unsure’ of the impact. UK dealerships will of course be watching out for evidence of post-Brexit fallout over the next few months. They well know how far maintaining sales of new and used cars is shaped by the multiple extras that OEMs and dealers have sought to integrate into the sales process. The vagaries of car insurance provide one intriguing example. While car sales have been doing well, policy premiums have been rising, the overall cost to drivers being added to by hikes in Insurance Premium Tax. The latest such hike, announced in last March’s budget, is due to come into effect in Q4 2016. The combination of 2015’s IPT increase and other premium rises puts about £40 onto the average annual premium, with more for younger, higher-risk drivers. Dealerships and their insurance partners like flexibility when it comes to packaging deals for buyer demographic profiles, but they have less flexibility here than before. A 2011 European

Court of Justice ruling prohibits the use of gender considerations when underwriting insurance premiums, banning insurers from offering women drivers lower premiums based on the fact that statistically they are less likely to make a claim than male policyholders. Following Brexit, however, this ruling could be one of many EU and ECJ rulings being revoked here in the UK. Dealerships here would have plenty to gain from seeing the gender-balancing ban rolled back. Such a change would fit well with sales and marketing campaigns focused on women car buyers now claiming a higher proportion of new vehicle sales. It might also be a good time for the automotive retail sector to give some consideration as to how Brexit might have a bearing on car financing packages such as Personal Contract Purchases (PCPs). Are there any early signs that interest rates are increasing there and, if so, are your brands reacting quickly enough? Any disruption to the successful and now dominant financing model is a concern but it may also provide an opportunity for the UK car market and its dealers as they explore a wider mix of financing options including possibly a ‘Pay-As-You-Use’ charging system going forward. Like all moments of uncertainty, Brexit provides dealers with an opportunity to review how things are done right now. Some will use the next two years prior to exit as an opportunity to tweak their sales processes. Others still will deploy technology solutions to unlock operational efficiencies. Larger firms will no doubt continue sizing up further acquisitions, especially if they see sales margins being squeezed further in all the uncertainty created by the UK’s upcoming EU exit.

Who is Paul Smith?

ASSA Abloy purchased the electronic key management software provider eTag Solutions. eTag was founded by Paul Smith, who now heads Traka Automotive, part of the ASSA Abloy Group brand Traka. Traka is a leader in intelligent access control, key management control solutions and keyless electronic lockers.

Keys can make you money… Find out how at www.traka-automotive.com The only viable key management solution for automotive POWERED BY

Email sales@etagsolutions.com or call 0845 225 2910

108 | CarDealerMag.co.uk

MONEY TALKS

..in association with Paragon Car Finance

Masses of motorhomes! They’re becoming more and more popular – and longer-term deals are available

ccording to the DVLA, there are more than 225,000 motorhomes on the UK’s roads, an increase of 30 per cent compared with 2010. With buyers expecting to pay between £30,000 and £100,000, competitive finance is often instrumental in facilitating a smooth transaction. What defines a motorhome? Motorhomes can be roughly categorised into three groups. Class A or integrated motorhomes are the largest and most luxurious. They have a solid body, the driving area is integrated into the living accommodation and the sleeping berths convert from the lounge at the back. Class B and Class C motorhomes are both coach-built, with a trailer or caravan-style body mounted onto a van or truck chassis. However while Class C vehicles, sometimes known as

alcove motorhomes, include sleeping berths over the driving area, Class B vehicles have all the sleeping space in the rear. What’s the tax situation? Van and LCV owners can often avoid or reclaim the VAT on their vehicles. Motorhome customers sometimes ask if they can do this too because the vehicle is built on a similar chassis. The short answer is no. This is because commercial van and LCV owners are using their vehicles for business purposes. Motorhome owners clearly are not. In terms of vehicle excise duty or road tax, it’s important to make sure motorhomes are correctly classified as Private Light Goods Vehicles or Private Heavy Goods. If incorrectly registered under the vehicle excise scheme for private cars, owners could pay more than they should.

How can dealer finance help? Motorhomes are an expensive purchase but the good news for buyers is that motorhomes hold their value well compared with cars. For example, while a car will typically lose a large proportion of its value during its first three years on the road, a motorhome depreciates much more slowly. As a result, finance can generally be arranged over a much longer term. At Paragon, we offer hire-purchase agreements on motorhomes up to five years old at the start of the finance agreement for terms of up to 10 years. These longer-term agreements offered at a fixed interest rate help to spread the cost of funding and provide buyers with greater certainty around their motoring costs. Distributed through approved introducers, Paragon will be reaching out to motorhome retailers throughout the summer.

Any questions?

If you have any finance questions that you should know the answers to but you’re too scared to ask, send them through to Paragon Car Finance at pcf@paragonbank.co.uk

Home Sweet Motorhome Paragon Car Finance is proud to extend its lending package to motorhomes What we can offer Hire Purchase Maximum loan term = 10 years No deposit required Maximum LTV 115% Maximum age of vehicle at end of term = 15 years Maximum loan £100,000

0345 149 7777 pcf@paragonbank.co.uk www.paragoncarfinance.co.uk/motorhomes Paragon Car Finance is a trading style of Paragon Bank PLC. Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 5390593. Registered office 51 Homer Road, Solihull, West Midlands, B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551. BPCF13099 (07/2016)

CarDealerMag.co.uk | 109 BPCF13099 - Car dealer motorhome advert - home sweet motorhome.indd 1

29/07/2016 15:12

HOT PROPERTY

..in association with Rapleys LLP

Business rates – be prepared! Geoff Sayer looks at how you can use the summer months to plan ahead

he sentence ‘Trust me, I’m a weatherman’ is not one you’ll hear that often. After all, we are frequently promised hot summer sunshine only to experience grey skies and drizzle. As I write, for once, those high temperatures have certainly arrived and by the time you read this the holiday season will be in full swing. For business in general – and automotive businesses are no exception – the summer holidays are often quieter, but that presents an opportunity to prepare for the autumn. While there are hopefully no storms ahead, there will be a change in the climate as far as your business rates are concerned and it may pay to get ahead of the weather, so to speak. In October 2016, the Valuation Office will publish online the new assessments of your properties in a ‘draft rating list’ eventually taking effect from April 1, 2017. (This should have happened in 2015 but the then government

deferred the new list for an additional two years in the name of ‘helping business occupiers’.) The current list is the 2010 Rating List and the assessments contained within it were based on rental values as at April 1, 2008. However, this time round, the 2017 list is based on rental values as at April 1, 2015. That means a seven-year gap, bringing with it the possibility of significant changes in individual assessments (including some large increases) because those 2008 values predated the severe events which kick-started the economic downturn in the autumn of 2008. By contrast, the 2015 landscape was markedly different, but the question isn’t only how values have changed, it’s also whether the Valuation Office has got the valuation of your property correct and whether they have measured your property correctly in the first place. The draft list presents an opportunity but don’t assume that the Valuation Office has got

it right – review the information or get your specialist automotive rating surveyor to do so in order to decide whether to make representations if they’ve got it wrong. Automotive occupiers stand to benefit greatly from the extensive market knowledge of specialist automotive practices as not only do they have access to vast amounts of market data, they are also responsible for creating it. There is evidence that automotive rents have risen by an average of 8.5 per cent over the last five years but knowing why and how values differ from one area to the next will allow readers to keep their assessments as low as possible. The process is also more complicated this time with a new three-stage system called ‘check, challenge and appeal’. So, now is the time to appoint your specialist, get prepared while the sun is shining and just like with the weather, don’t assume those who should know have got it right!

Who is Geoff Sayer?

Geoff is a partner in the market-leading automotive & roadside team at Rapleys LLP. Contact him by mobile on 07769 671488 or email Geoffrey.Sayer@rapleys.com

Automotive & Roadside Specialists Search & Acquisitions Disposals & Lettings

Property & Planning Consultancy

Portfolio Advice Lease Consultancy Valuations & Appraisals Expert Witness Rating Appeals Planning Applications & Appeals Building Consultancy & Project Management Development Consultancy Investment Brokerage For over 30 years Rapleys has been synonymous with the Automotive & Roadside market, providing our clients with an unmatched continuity of service and level of experience. For more information on how we can help your business, please contact: Geoffrey Sayer I 07769 671 488 I geoffrey.sayer@rapleys.com

rapleys.com 0370 777 6292 110 | CarDealerMag.co.uk

BIRMINGHAM

BRISTOL

EDINBURGH

HUNTINGDON

LONDON

MANCHESTER

THE FLEET.

LATEST FROM THE FLEET... Welcome report:

SeatCupra We’re under orders to take it steady with this new arrival. But Jack Evans is already more than impressed...

s you’ll see over the next few pages, we’ve had a number of fleet newcomers. There’s quite a variety these days, but this little Ibiza Cupra was the one I was rather excited to get behind the wheel of. Why? Well, for starters, it’s got around 190bhp. It also weighs very little, and there’s a lovely six-speed manual gearbox to keep things moving. On top of that, you’ve got a ‘sport’ button, which firms up the suspension and sharpens throttle response. And who doesn’t love a sport button? Another key reason that I was eager to take the Seat’s keys was one thing: simplicity. Sure, 500bhp supercars are fun, but day-to-day you really can’t drive them all that fast. They’re also thirsty, difficult to park and – in certain colours – a little bit too lairy. That’s where a hot hatch such as the Cupra comes in. It’s quick, but you’re not going to be worried about leaving it outside Asda. So how are we getting on with the little Seat? Sedately, to begin with. It’s come with just under 200 miles on the clock, which means we’re very much inside that irritating running-in period. Keep the revs low, we were told. Don’t try to go too fast, they said. How difficult is it to not do that? Extremely.

With a car like the Cupra goading you to go faster through each and every bend, it takes a huge amount of restraint not to knock it down a gear and thrash the little 1.8-litre turbocharged engine. But, that being said, it’s a relaxing car to drive at moderate speeds, and the 320Nm torque on tap means that it always has enough grunt in almost every gear. Pulling away from a junction in third? Tick. Initial impressions? It’s a really impressive little car. Even on the motorway, it feels a lot larger than its size would lead you to believe, and manages to settle down to a cruising speed without the merest hint of an argument. When those roads get a little bit more rural, it manages well with bumps and potholes. It’s also got an excellent infotainment system, with a sat nav that’s easy to programme, and there’s even Apple CarPlay and Android Auto connectivity.

THE KNOWLEDGE Model: Seat Ibiza Cupra Price: £18,900 Engine: 1.8-litre turbocharged petrol Power: 189bhp Max speed: 146mph 0-60mph: 6.8 seconds Emissions: 145g/km MPG: 45.6mpg (combined) Mileage this month: 765 THIS MONTH’S HIGHLIGHT Getting to know our newest hot hatch.

So far, it’s also averaging in the mid-30s economy-wise. That’s not too bad for a performance hatch, and it’s a figure that I think is pretty respectable, especially considering that the car isn’t anywhere near loosened up. Thanks to that final sixth ratio the car doesn’t buzz along at higher speeds, and makes for a much more relaxing drive – especially on the motorway. There’s a rather large elephant in the room with this car, however. That elephant takes the form of the Fiesta ST. In the office we’ve all discussed the huge merits of the Cupra, but they always get trumped by the ever-successful ST. It’s a little bit cheaper, and an absolute riot to drive at almost every speed. You also get a huge amount of kit as standard, too. What would I have out of the two? I’m going to go straight in there and say I’d take the Seat straight away. It’s the underdog, and a good-looking hound at that. It’s already received quite a few compliments, and I can understand why. It’s well put together and solid inside – save for a few blanked-off buttons – and everything feels like it’s been built with a certain amount of care and attention. It appears to be all the hot hatch you could ever hope for. I certainly think so.

CarDealerMag.co.uk | 111

THE FLEET.

LATEST FROM THE FLEET... New arrival:

New arrival:

Second report:

AudiQ7

OutlanderPHEV

DS4Crossback

SuzukiVitara

Darren enjoys the high life on some rural roads

Scepticism soon gives way to enthusiasm

New arrival leaves our Simon feeling, er, cross

Getting all shouty with the voice recognition

THIS month, we said hello to the newest member of our long-term test fleet, an Audi Q7. And then we swiftly said goodbye as Mr Baggott nabbed the keys and disappeared. So when I managed to prise the large fob from his reluctant hands, I was excited. Not least because this low-slung sports car lover has always been intrigued by what such ludicrously large SUVs are like to drive. With an open mind I climbed aboard the good ship Q7 and set off. Now, first of all, I’m not a fan of the high driving position. I know it’s a plus for yummy mummies but I just felt too distant from the act of driving, neither did I feel any safer than in a saloon. It was also uncomfortably large on the country roads near home. I was always inches from straddling a ditch or swiping parked cars. I did manage to bully a Ford Ka into reversing back up a pinchpoint, though, which was fun. All that said, I can understand the appeal of such a car. It’s huge inside, making it perfect for keeping family members comfortable while hauling all their stuff. Much to my surprise, I think I could see myself rather liking this big ol’ beast. If I can steal the keys again, that is… Darren Cassey (@DCassey)

WHEN you’re on the road for a video shoot, you need a vehicle that can consistently deliver in almost all areas that are up for critique. Space and comfort come out on top as the main points to consider. After being initially sceptical about the PHEV, driving it over a weeklong period completely changed my perception on it. There is ample boot space for the kit, and having a flat load lip makes it that little bit easier to get everything in. Having an electrically operated boot lid is also a major bonus, because lifting a manual one, a camera and two tripods at the same time is way too much effort and rarely ends well. The ride (generally) is smooth and if you can overlook the wallowing through longer corners, it makes for a reasonably satisfying drive. It’s by no means thrilling if you’re into your driving, but there isn’t really anything negative to say about it. The PHEV was a brilliant tool to have on a video shoot and really stood out when we had to track out the back of it on a sandy beach. The easy-to-operate 4WD system was an effortless venture and the pockets either side of the boot floor made for great foot rests while straddling a tripod. Zaak Andrews (@zaakandrews)

AFTER the car was on the receiving end of much grumbling from my colleague Mr Fossdyke, I was determined to get behind the wheel of our new DS4 Crossback longtermer with an open mind. In the interests of fairness, I set my internal monologue to play the words ‘how bad can it be?’ on repeat, before climbing aboard for the drive home to Portsmouth. Unfortunately, first impressions weren’t brilliant. The driving position was my greatest bugbear, as I found myself being both very far away from the steering wheel and far too close to the pedals at the same time. Couple this with the fact that the steering wheel itself is unnecessarily massive, and you find yourself in a rather uncomfortable position. That said, this might have something to do with my awkwardly shaped frame, which looks comical at the best of times. The last thing I’m going to moan about is the styling. From most angles it just looks a bit weird, and the strange orangey-brown colour we have on ours doesn’t do the DS4 any favours. Beauty is in the eye of the beholder, though, so maybe there are people out there who will think it looks fairly decent. Maybe. Simon Davis (@SimonDavisNZ)

I’M going to put it out there and say I love the new addition to our fleet. I know Fossdyke wasn’t hugely impressed with it, so I nabbed the keys to see for myself. It’s a car I’ve been a fan of for a long time and for me, what stood out is the fact that it’s a really easy and comfortable car to drive. Yes, the steering is a little light and the turbo can take a little too long to kick in when you put your foot down. I’m not sure when I’d take it offroading, either – but it’s certainly great fun to drive. My first impression is that this car has focused more on style, although it hasn’t disregarded substance. Another feature I love in our top-of-the-range S ALLGRIP is Apple CarPlay. It’s a breath of fresh air compared with the usual manufacturer tech systems. I’m still unconvinced whether texting using voice recognition is safer while you drive, but it’s made arguments via text a bit more lively as I shout my messages at the car. I’ve really put the Vitara through its paces, what with moving house, and found it’s a brilliant workhorse and great for carrying my belongings to my new place. Rebecca Chaplin (@believebecca)

THE KNOWLEDGE Model: Audi Q7 Price: £55,215 Engine: 3.0-litre diesel Power: 276bhp, 600Nm Max speed: 145mph 0-60mph: 6.5 seconds Emissions: 153g/km Mpg: 36mpg (combined) Mileage this month: 121 THIS MONTH’S HIGHLIGHT Intimidating a Ford Ka on a twisty country lane. 112 | CarDealerMag.co.uk

THE KNOWLEDGE Model: Outlander PHEV GHX5h Price: £ 40,899 (after PiCG) Engine: 2.0-litre 4-cylinder petrol plus electric motors Power: 104bhp, 385Nm Max speed: 106mph 0-60mph: 11 seconds Emissions: 44g/km Mpg: 148 (combined) Mileage this month: 550 THIS MONTH’S HIGHLIGHT Plenty of space for equipment.

THE KNOWLEDGE Model: DS 4Crossback BlueHDi 120 S&S Price: £24,045 Engine: 1.5-litre turbodiesel Power: 118bhp, 300Nm Max speed: 117mph 0-60mph: 10.9 seconds Emissions: 103g/km Mpg: 72.4 (combined) Mileage this month: 1,375 THIS MONTH’S HIGHLIGHT Agreeing with grumpy Mr Fossdyke.

THE KNOWLEDGE Model: Vitara S ALLGRIP Automatic Price: £24,285 Engine: 1.4 Boosterjet Power: 138bhp 220Nm Max speed: 124mph 0-60mph: 10.2s Emissions: 128g/km Mpg: 51.3 (combined) Mileage this month: 538 THIS MONTH’S HIGHLIGHT Making use of the Vitara’s workhorse capabilities.

LONGTERMERS Fourth report:

Fifth report:

Eleventh report:

FordMondeo

KiaSportage

Mazda2

RenaultTwingo

Not a very glamorous assignment for EA16USY

It’s time for a shiny new bumper and some TLC

John thinks our little Mazda is marvellous!

Dave has a minor panic (nothing unusual there)

THE Mondeo has been settling in very nicely to Car Dealer life and seems to be the car of choice for visits, events and our more peripatetic staff. Trying to get the keys off the video team is quite like trying to take my dog’s favourite toy off her – except Swan doesn’t respond to ‘Lily, drop’. Key to the appeal is the sheer size of the thing. It’s almost obscenely massive – just 3cm shorter than a Mercedes E-Class estate, but exactly the same width – which means you can shove ridiculous quantities of stuff in the back. Tasked with clearing out the lockup in which we built the Caterham for issue 100, the Mondeo was the car of choice for the tip run. I’m sure the spiders left behind will find their new home just as appealing. It’s pretty comfy, too – not that the spiders will appreciate that. OK, so there’s something of the dynamic Mondeo recipe of old that’s been lost as the car has grown up, but it’s such a nice place to be. It has to be said that the modern trend of eliminating buttons has passed Ford by a little, as there’s an element of an Airbus flight deck to the heater controls in particular, but otherwise there’s not much to complain about. Andrew Evans (@snavEwerdnA)

YOU may remember that the Sportage received a blow to the rear a couple of months back. Mr Baggott MAY have reversed into a bollard at BCA – although he can’t recall the incident ! Anyway, since that moment, reversing the Sportage has become an activity all of us here at Baize HQ try to avoid. Even if isn’t always possible. This is because every time you engage the reverse gear, the parking sensors screech to the high heavens until your ears bleed! I’ve actually seen cats running towards it. I’m convinced that’s why James hasn’t stepped back behind the wheel for a while… Thankfully, the Sportage is getting some much-needed TLC back at Kia’s HQ, which means (should they trust us with the keys again) it’ll soon be back in our care with a shiny new bumper and (we hope) fewer squealing noises. With this in mind, it’s been a relatively quiet month for the Sportage, with the exception of a few lunch trips into sunny Gosport before it set off for the fix. For now, it’s been replaced by a cee’d. I have to say, when the Sportage returns I’m rather looking forward to reversing in peace again. Sophie Williamson-Stothert (@1Sophie_W)

I DON’T often get the keys to one of our long-termers, but when I do, it’s often to this small bundle of joy. You could say I’ve developed a love affair with the ‘2’ and I’ll explain why. Having driven VU65UAT quite a few times recently, I’ve grown rather fond of its sporty look and sturdy diesel feel. It’s a great motorway drive and it was easy to hit 70mph and stay there without much effort. While it’s good on the straight and narrow, it doesn’t let you forget it’s a diesel whenever you need to pull away with any urgency. That said, it wasn’t designed to shoot out of junctions. It did serve its purpose well when filling up with shopping and parking in the smallest of spaces in town, though. I also appreciate those retro beeps when you lock it. It’s very handy for me, as I sometimes only remember to lock the car when I reach the door of my house – so this saved me venturing back to the car to check. As I was mainly driving a very familiar commuter route I didn’t attempt to fiddle with the GPS too much, but everyone else seems to rave about it. The interior is sleek and stylish with all the must-have features. Love it! John Bowman (john@blackballmedia.co.uk)

REGULAR readers of my long-term reports (who am I kidding?) will know I’m a big fan of our Twingo. You don’t need me to tell you it’s a clever little city car, with bags of personality. But there is one thing I noticed recently – and it was something that caused me a moment of panic after parking in a tight spot, even for HY65RJJ. I felt distinct contact with the kerb – and it wasn’t good. Hopping out of the driver’s seat, I went round to the rear nearside wheel, and sure enough, noticed a slight scuff on the alloy. Although the car had regrettably suffered a bit of damage, I was relieved to find out that I wasn’t to blame, after texting a colleague who told me the alloy had already been scraped in a previous incident a few days earlier. A closer inspection confirmed only the wall of the tyre had made contact with the kerb during my slightly inaccurate parking effort. It did get me thinking, though – are the wheels designed in such a way that the alloys are a bit more vulnerable to scuffs and scrapes than they should be? Perhaps I’m being picky but I’ve concluded that is indeed the case. Still very fond of the car, though. Dave Brown (@CarDealerDave)

THE KNOWLEDGE Model: Ford Mondeo Titanium TDCI Auto Price: £29,375 Engine: 2.0-litre, 6-speed automatic Power: 208bhp, 450Nm Max speed: 142mph 0-60mph: 8.1sec Emissions: 134g/km Mpg: 54.3 (combined) Mileage this month: 886 THIS MONTH’S HIGHLIGHT Actually getting to drive it...

THE KNOWLEDGE Model: Kia Sportage First Edition 2.0 CRDi (auto) Price: £31,645 Engine: 2.0-litre diesel Power: 182bhp, 400Nm Max speed: 125mph 0-60mph: 9.2sec Emissions: 166g/km Mpg: 44.8 (combined) Mileage this month: 122 THIS MONTH’S HIGHLIGHT The prospect of reversing in peace.

THE KNOWLEDGE Model: Mazda 2 1.5D SE-L Nav Price: £16,395 Engine: 1.5-litre turbodiesel Power: 104bhp Max speed: 111mph 0-60mph: 10.1sec Emissions: 89g/km Mpg: 83.1 (combined) Mileage this month: 434 THIS MONTH’S HIGHLIGHT Fewer trips back to the car to check it’s locked.

THE KNOWLEDGE Model: Renault Twingo Dynamique S Energy TCe90 Price: £12,545 Engine: 0.9-litre petrol Power: 98bhp Max speed: 103mph 0-60mph: 10.6sec Emissions: 99g/km Mpg: 65.7 (combined) Mileage this month: 457 THIS MONTH’S HIGHLIGHT Not being to blame for a scrape. CarDealerMag.co.uk | 113

BAGGOTT.

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No wonder carmakers want to replace us with robots!

apan is a funny place. I mean, what sort of country offers you ice cream and curry options at a breakfast buffet? I’m not complaining, because who would complain about a vindaloo and vanilla sundae combo first thing in the morning? Exactly. No one. No, what I’m trying to say is, it’s not the sort of thing you’d get in a Premier Inn, is it? This month I popped over to the land of the Rising Sun to sample not only a curry ice cream breakfast extravaganza, but Nissan’s future too. When I say Nissan’s, what I really mean is every single driver’s future. These are landmark times. Seismic shifts in technology are afoot and they’re about to make life on the road very different indeed. I’m talking about automation. Not robots – as much as I’d love Wall.E to drive me around – no, this automation is behind the scenes, and very much about to take over in more ways than one. Although autonomous driving has been getting a bit of a bad press recently, manufacturers are most certainly pushing ahead with the technology. Car chiefs see it as a way of not just making motorists’ lives easier but a way to fix congestion, improve fuel economy and make roads safer. Ok, that last one might be a hard sell after the recent tragic Tesla crash, but once refined, this technology could change the way we use cars for ever. Tesla may have been first to market with a car that can ‘drive’ for you on motorways, but next year Nissan will bring the technology to the masses by introducing self-driving on its refreshed Qashqai. It’s likely to be standard on top-of-the-range trim levels which currently account for 30 per cent of all Qashqai sales. You don’t need to be a mathematical genius to work out then that more people will experience autonomy in a Nissan before anything else. Over a very raw fish-based dinner I chatted to the man behind Nissan’s autonomous programme and he admitted that for the technology to work perfectly it will require car manufacturers to develop these systems together. It’s only when cars of all makes are able to ‘talk’ to each other that full autonomy will be possible. Just imagine a time when all the cars on a motorway are connected. They could travel just inches apart in blocks at any speed, accelerating and braking as one. Those phantom traffic jams caused by people driving too close together and hitting the brakes would be a thing of the past. City traffic could work on a grid system – computer controlled to flow perfectly, eradicating jams. Cars would

Who is James Baggott?

work harmoniously, moving together, travelling as one giant convoy. By keeping cars flowing and eradicating stop-start traffic, fuel consumption would be improved too. And when there’s a problem, the information passed between cars on the ‘grid’ could re-route you around it to save you time. I’ve always wanted to be able to see the road ahead of me – often day-dreaming about sending a drone up to check the road ahead to help spot jams or let me know if it’s safe to overtake on blind corners. Think for a minute, then, how much time you could save if you knew the exact traffic state on the roads you were planning on using before you left home – just imagine how much less stressful that would be. Ok, so Google Maps is getting there – its red and amber warnings on a route are useful and recently I let it guide me

James ‘Stupid drivers doing Baggott stupid things will be a thing of the past’

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around a jam on a major A-road and it worked brilliantly. But with connected cars, that knowledge would be sacrosanct. No longer would you be guessing whether the overhead gantry signs telling you of queues ahead were out of date, your car would already know. But chances are those jams would be pretty rare anyway. Autonomous cars are unlikely to crash – well, when the software is perfected, that is. Stupid drivers doing stupid things will become a thing of the past. Cars these days are pretty safe forms of travel – they’re stacked with safety kit and built to withstand almighty impacts. The problem is, and always will be until computers take over, us. A recent survey found driver error was to blame for 90 per cent of crashes, so is it any wonder car manufacturers want to replace us with robots? This might all sound like a step too far for anyone who, like me, actually enjoys driving. However much you like the thrill of being in control, you can’t fail to see the appeal of letting a computer take over for you on a long, boring motorway schlep or letting the robot brain take your car off and park itself in a multi-storey. Like it or not, those days are coming, change is afoot and it’ll be here before you know it – and I’m not talking about a vanilla ice cream and curry option at the Premier Inn breakfast buffet.

He’s the founder of Car Dealer Magazine and chief executive officer of parent company @BaizeGroup, an automotive services provider. He now spends most of his time on Twitter @CarDealerEd and annoying the rest of us. 114 | CarDealerMag.co.uk

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