Car Dealer Magazine: Issue 113

Page 1

FIRST DRIVE: BRITAIN’S BEST-SELLING CAR GETS A FRESH LOOK

Issue 113 | August 2017 | CarDealerMag.co.uk | £3.50

BABY S R E M O BO E THE INSIDE STORY ON TH OUT SUV SECTOR THAT’S AB RITY TO EXPLODE IN POPULA

FOCUS ON LEADING WARRANTY & INSURANCE SUPPLIERS

PLUS: DEALERS COME CLEAN ON THEIR TOP 10 EUREKA MOMENTS

7 1 0 2 R E W O P R E L A CAR DE

& THE TO DO BUSINESS WITH S ER LI PP SU ST BE E TH WE REVEAL VOTED FOR BY YOU! AS – T EN ES PR RE TO R RE BEST CAR MANUFACTU



Join Car Dealer Club by visiting CarDealerClub.com Members get free legal advice worth £195 for a £39.99 subscription

BLACKBALL MEDIA HASLAR MARINE TECHNOLOGY PARK, HASLAR ROAD, GOSPORT, PO12 2AG T: (023) 9252 2434 W: CarDealerMag.co.uk

FREE iPAD APP

7,537 PEOPLE HAVE IT – HAVE YOU?

IGNITION.

EDITORIAL HEAD OF EDITORIAL Rebecca Chaplin

rebecca@blackballmedia.co.uk Twitter: @believebecca

HEAD OF DESIGN Graeme Windell

graeme@blackballmedia.co.uk Twitter: @graemewindell

PRODUCTION EDITOR Dave Brown

dave@blackballmedia.co.uk Twitter: @CarDealerDave

FEATURES EDITOR Jack Evans

jack@blackballmedia.co.uk Twitter: @jackrober

SENIOR STAFF WRITER Darren Cassey

darren@blackballmedia.co.uk Twitter: @DCassey

STAFF WRITER Simon Davis

simon@blackballmedia.co.uk Twitter: @SimonDavisNZ

ADVERTISING SALES MANAGER Jon Hickey

j.hickey@blackballmedia.co.uk Twitter: @cardealerjon

ACCOUNT MANAGER Michelle Searle

michelle@blackballmedia.co.uk Twitter: @cardealermich

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

MANAGING DIRECTOR BLACKBALL MEDIA Andy Entwistle andy@blackballmedia.co.uk Twitter: @CarDealerAndy Contributors

Felicity Bestwick, John Bowman, Jess Ernerth, Jack Healy, Jon Reay, Tristan Shale-Hester, Ted Welford

Subscriptions £39.99 per year (UK); £59.99 (EU); £79.99 (rest of the world) You can pay by credit or debit card on our website – visit CarDealerClub.com

Distribution Car Dealer is distributed to a database of up to 12,000 franchised car dealers, independents, service and repair sites, car manufacturers and suppliers. Advertisers are supplied with a print certificate every month.

Awards Winner of Best Business Publication, Headline Auto Awards 2012 & 2014

Company No. 6473855 VAT No. 933 8428 05 ISSN No: 1759-5444 Car Dealer is published by Blackball Media Ltd (Company No 6473855) and printed by Warners. All rights reserved. Conditions of sale and supply include the fact Car Dealer shall not, without our consent, be lent, resold, hired out or otherwise disposed of in a mutilated way or in any unauthorised cover by way of trade or affixed to or as any part of a publication or advertising, literary or pictorial matter whatsoever. Car Dealer is fully protected by copyright. Nothing may be reproduced wholly or in part without permission.

Dealer Power is WELCOME. CAR arguably one of my favourite nights of the year. When it comes around, you know that we’re just about to break into some of the hottest days of the year, and this time around we were lucky enough to have experienced a bit of a heatwave in the runup to it. At the top of the Spinnaker Tower in Portsmouth, on summer evenings such as the ones we have been enjoying recently, the sunsets over Portsmouth Harbour and Gosport are quite spectacular. This year we were able to share the views with even more guests than ever, as demand was far higher early on. We managed to squeeze in an extra table to accommodate as many people as possible – but still there were those who were unable to get tickets! The location – with its setting and views – are all part of Car Dealer Power’s intrinsic charm, making the awards night wonderfully special. It would be a shame to lose some of that charm, but it was also a shame to not be able to hand over some awards at the ceremony. As the sun sets on one awards night, though, we start gearing up for another. You’ll have noticed in this month’s edition of the magazine that the Used Car Awards nominations are now open and you can read exactly how you can be a part of it. They are the polar opposite of Car Dealer Power, as you know it’s well and truly the start of the Christmas season once you’re on your way to UCA. For now, though, it can stay away a bit longer so that we can enjoy the good weather, and it gives you a chance to get nominating. And those Car Dealer Power winners can enjoy more of the limelight, as we’ve got a special picture feature about the night starting on p26. Plus, there’s the much anticipated leader board for

car manufacturers – and there’s certainly been a lot of movement this year! To find out who was our overall winner you’ll need to read on. Our feature this month is all about the cars that you can see on the cover. It appears car makers are going mad for small SUVs and we’ve got a whole clan of them that are making their way to dealerships. We’ve got a good feeling that car buyers will fall head over heels for these and you can find out all about them starting on p62. For more car news, we’ve tested one of the most important cars of the year – the new Ford Fiesta. Is it the improvement it was billed to be and will it continue to outsell all of its rivals? Jon Reay has all of the details. You can also read our first drives of the Honda Civic Type R and the Nissan Qashqai in the Forecourt section. Finally, if you turn to the back page for James Baggott’s column you’ll get a chance to see just how the other half live. Are you someone who has never quite understood what #FirstWorldProblems means but hasn’t liked to ask? Well, here’s your chance to find out... If you feel the need to mercilessly tease him on Twitter, over email or by phone, you can find all of his details just to the left of these words. It’s only jealousy really and I doubt that my fourth rant about Apple’s services and products will garner a similar eye roll on p23. Enjoy your issues and please don’t share them with me.

Rebecca Chaplin Head of Editorial

CarDealerMag.co.uk | 03


Make sure you’re properly covered.

Then you can focus on moving your business forward.

It’s good business sense.

Call

0800 197 1892 today or visit www.swinton. co.uk/business

Swinton Group Limited, registered in England number 756681 whose registered office is at: Swinton House, 6 Great Marlborough Street, Manchester, M1 5SW. Calls are recorded for training and quality purposes. Authorised and regulated by the Financial Conduct Authority.

04 | CarDealerMag.co.uk


Join Car Dealer Club by visiting CarDealerClub.com Members get free legal advice worth £195 for a £39.99 subscription

INSIDE. ISSUE 113 I AUGUST 2017

Dashboard

26

06 A Perfect Partnership 10 So You Wanna Be A Car Dealer? 16 Around the UK 18 SMMT’s call over Brexit 20 Rebecca Chaplin 23 Around the World 25 Car Dealer Power 26 Finance 52 Big Mike 57 Feedback

Find out who are the UK’s best car manufacturers and industry suppliers to work with, as voted for by our readers

18

MG dealer’s special anniversary... and more news from around the UK

16

88

‘‘

Forecourt A unique, refined Mini for sale in ‘Real Deals’

58

Rebecca Chaplin

Honda Civic Type R Nissan Qashqai

I thought it was about time I pointed out a couple of little snags in Apple’s way of working

Part four of our great new series... and dealers share their eureka moments

Ford Fiesta

Feature Focus on B-segment SUVs

Data File 23 Car Dealer Club The Statistics Auctions Taking Stock Real Deals Market Insight Recruitment Suppliers Guide Key Notes with Traka Long-termers James Baggott

The next-generation Ford Fiesta – quite possibly the most important new car of 2017 – on test

58 60 61 62

82 84 86 87 88 89 91 92 94 95 98

OUR EVENTS... As voted for by dealers, Car Dealer Power is unique. It’s all over for 2017... but we have lots of coverage of our recent awards night in Portsmouth and it all starts on page 26.

The Car Dealer Used Car Awards, sponsored by Black Horse, celebrate the used car industry. Check out the six-page supplement in the bag with this mag for more.

The UK’s biggest and best automotive trade expo features the Live Stage, breakout sessions, workshops and more. We’ve already begun planning for next year’s two-day spectacular! CarDealerMag.co.uk | 05


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

Our website at CarDealerMag.co.uk

Should I be checking LIKE most, if not all, of you I suspect, I have demonstration insurance bundled with my trade insurance package. Naturally, the policy dictates that the policy holder (me) needs to be present in the vehicle [during a test drive], and the driver of course has to have a full driving licence. Now I’m going to be totally honest, I’ve never once asked to see a driving licence prior to a drive. I may be breaking a golden rule there, I just never have. I’ve assumed in all cases prior to the one I’m about to mention that the potential customer has held a full licence. However, on Friday, a young lad and a middleaged man came to view a car. They looked around it and I established that it was the middleaged man who was showing interest to buy. We got to the point where he wanted to take the vehicle out, but oddly, he wanted his son, the younger lad, to drive the vehicle. To my eye, this young lad looked 17 at most. I said I’d let him drive if I could see his photocard, which he ‘didn’t have’. I then dropped a bit of a b****ck by saying the older guy can drive it, but I never asked to see his licence, so obviously the conversation then turned to ‘you never asked to see his licence’, and the whole thing became very awkward. To cut a long story short, I stuck by my guns and expressed concerns that the young lad didn’t look old enough. He couldn’t show me any form of ID, so I said I’d let the older man drive the car on the road, and the younger lad could drive the car around the private industrial estate on which I’m based. The end result was that the two guys got the arse and walked away. There was no real bad blood, they were just not happy with my offer to meet in the middle. So should I be checking licences all the time? Do you guys? And what would you have done? I’m a little gutted as the car in question has been up for a little longer than most, and they seemed interested. Judging by the new X6 they pulled up in, they had the finances to buy on the spot too. My gut feeling is that the dad wanted the Defender for the lad to use on the farm and

Picture of the month BEING a photographer isn’t all glamour, you know, and sometimes you have to take the rough with the . . . very rough. Here’s our favourite snapper Jonny Fleetwood hard at work for Blackball Media’s sister company, On Cue Communications, in Bristol. Who needs red carpets and champagne receptions when you can skip all that and get back to basics surrounded by industrial chic? then once he’d passed his test, but I may be wrong. I did leave it open for them to come back with a licence, but I genuinely don’t think the lad had one, and the father wouldn’t progress with the deal as a matter of principle. I’d like to think, however, that any decent father wouldn’t allow their unlicensed son to drive without a full licence. Very odd! MattGM Matt, for what it’s worth, you did exactly the right thing, and I would have done the same. Always, always trust / listen to your gut instinct. Whilst it’s annoying to lose out on a sale, it’s not worth the risk should something have gone wrong. Ocsltd We have insurance cover allowing unaccompanied test drives for up to 10 minutes. The punters must declare and sign they have a current licence and provide their ID etc. However, I once refused to deal with two quite young lads who looked about 15 and had shaved heads. They were interested in a Passat diesel. They looked like ram raiders to me. They said nothing and left. A few hours later, we got a phone call from their mother, who was screaming at us. It turned out she was a regular customer and her boys had travelled 50 miles to buy this car. The

boys were in their early 20s and were well-known professional jockeys ! trade vet We have a test drive form to complete. It takes eight minutes tops to complete and makes things safer for both parties. Our website clearly states – no UK licence, no test drive. Must be over 22. You would not believe how many viewers haven’t got eight minutes. It sorts the messers out! If the guy driving has an accident and he hasn’t got a licence I believe you are both at fault? tradex I had this discussion recently with our insurer and was told I should take a copy of their photo card AND carry out a driving licence check with the DVLA to ensure they are not currently banned (same as when you rent a vehicle). To do this you need their NI number. When I said this was ridiculous and that nobody takes their NI number when going to look at cars, I was told ‘that’s not our experience’. A new one on me... FHP11 I take a photocopy of every driver’s licence and write the time, date and registration on and stick it in the file. grant8064

Should I wave goodbye to our Mexican holiday plans? SPECIFICALLY you guys that work on your own, or with the missus. What do you guys do and how do you get on when and if you decide to have a holiday? She who must be obeyed is giving me earache over wanting to book 11 nights in Mexico next May. I’m not averse to the idea, but as I’m now self-employed, I’m a little unsure about the impact of closing my doors for the best part of two weeks. It’s not the loss of

income that is my real concern – I can budget for that – I’m just concerned that afterwards, it will take some time to get the wheels turning properly again. I COULD get a family member in to man the phones and take people around and out in cars, that’s not an issue, but the person in mind is no salesman, and the majority of what I do, only I can do, so I’m not sure. Be interested to hear other people’s tales of how they’ve gone about it.

And no, letting her go off and jolly it up without me is not an option. If I’ve got to stay secluded here in this desolate empire, she can sip a pina colada in the garden and like it. MattGM Shut the door and enjoy yourself. The tyrekicking time-wasters will still be there when you get home. At least you will have a decent tan. MrC

More and more of our readers are joining the debate – and it couldn’t be easier 06 | CarDealerMag.co.uk


On Twitter: Follow @CarDealerMag

Forum: CarDealerMagazine.co.uk/forum

licences all the time? Tweets of the month Top tweet British cars are becoming more British, with 44 per cent of parts coming from UK suppliers (up from 36 per cent in 2011) SMMT @SMMT GForces have won the #CDPower Award as Website Provider for Franchised Dealers a second year in a row. Thanks to all who voted for us! #Awards GForces @G_Forces We’re very proud to have won Online Advertising for Used Cars & 4 Highly Commendeds at the @CarDealerMag #CDPower awards last night #humbled Auto Trader Insight @ATInsight

#Winner of #Recruitment Agency of the Year for the 5th year in a row! #CDPower @CarDealerMag Perfect Placement @MotorTradeJobs I was immediately struck by the styling on the @ToyotaGB C-HR, so I borrowed one to see if it’s any good. Yes, yes it is. Really good Ralph Hosier @RalphHosier Thanks to @ArnoldClark Wigan, and the so so helpful Michael Riley for setting me up with my lovely car. Much appreciated; brilliant service Karen Challis @mgc_karen

FEEDBACK

New dealers willing to take serious risks WHAT is it with this industry? Maybe it’s me? There must be at least one of these threads saying ‘I want to be a car trader’ every week. They will also possibly be a competitor, and want to pick our brains for info it’s taken years to acquire! Now I know I have a choice to ignore them all, but I can’t think of any other profession where someone with no or very little idea of what’s involved would wish to risk their and their family’s livelihood, their ability to pay the mortgage, plus stake their future and everything else that goes with a career change. A career they think is lucrative enough to give up the day job working for someone else with all the perks that go with that. I appreciate that Joe Public looking in from the outside still thinks it’s rich pickings. They probably think there’s little to do except buy a car from auction, throw a bucket of water over it and mark it up a grand. They probably imagine that tax and VAT isn’t an issue and that it’s a career that can be both part-time and full-time. I wonder if builders’ websites get ‘I wanna be a builder’ requests, or plumbers with ‘I’ve changed a tap washer and seen the light, this is the job for me – how do I make money?’ I just find it very puzzling. I can only think it’s a profession that isn’t seen as a real job.

Example: Just been to the doc’s this morning. I’ve got another hernia so another op is needed. If I ain’t working, I ain’t earning so it’s a big issue. Means weeks off. New doctor, we haven’t met before, asked me what I do, told him and when he chuckled (I sort of expected him to) it pi**ed me off to some extent. I told him I thought his job was easier (at times) with only two models of the same make to work with, and that there’s nothing new that hasn’t been seen before. Also, that my experience with docs has rarely diagnosed the issue and there aren’t too many comebacks from Joseph Public. Don’t suppose he liked me for saying that but he started it! tradex I know your comments are not just aimed at me, but I am a little bit unhappy with them. I said I didn’t think it would be easy. I have had many sleepless nights trying to get my head around all of the minefields involved in this business. Only an idiot would think that you buy a car from auction and throw a bucket of water over it to make money. This is a calculated career change that I want to succeed in. I thought it would be fine to ask for help and support. Dlloyds

Remote Norway and you stumble across a rare old Mazda. A 629 looking a little sad... Epic Drive Behind the Scenes... Mazda UK PR @mazdaukpr

What is the most cash you have found in a car? JUST finished valeting one myself and found £6.40 and 3 euros under the driver’s seat. Right cheered me up that has :) Max Branning £40. Was quite a while ago though. SC Derby We have a jar that we stick any change in that we find in cars. I just took it to the Post Office the other day as it was full after a year’s trading. There was £84 in total so I treated the Mrs to a nice steak dinner (all heart, me). I even managed to stretch to a second glass of Pinot for her... winner. However, around £20 of that was from an Audi A4, all in 2ps, the most disgusting heap of a car I have ever cleaned. However, the tip made it a little more bearable... Mat C Many moons ago, I swapped a VR6 for a 328 Coupe. I got about five miles from the guy’s house and spotted an envelope in the passenger door pocket. £1,500 in cash. I rang him and asked if he was missing anything. Took him a while but turns out it was money for a holiday. MrC

to get involved! Sign up to our forum at CarDealerMagazine.co.uk/forum CarDealerMag.co.uk | 07


DASHBOARD. BUSINESS HOURS

Dealers urged to stay open longer

CAR dealers are being urged to extend their opening hours during the summer to take advantage of increased evening phone inquiries. The car search website motors.co.uk said it had found a 22 per cent increase in the proportion of phone inquiries made by consumers to dealers between 6pm and 8pm from April to June this year – the second quarter – compared with the first quarter of between January and March. It also discovered that 23 per cent of phone inquiries made to dealers between 6pm and 8pm since the start of 2017 weren’t answered by a person or voicemail system. Phill Jones, above, managing director of motors. co.uk, which is part of Cox Automotive, said: ‘While it is understandable that some dealers may not be able to keep the office open long after 6pm, it could be very worthwhile redirecting calls from the office to a mobile until 8pm. At the very least, we recommend investing in a reliable voicemail system.’

BIG CARS

Business branded inspirational again A PREMIUM used car business launched in Chelmsford in 2008 has been named by the London Stock Exchange (LSE) as one of the UK’s most inspirational companies – for the third time in a row. Big Cars, which also has dealerships in Witham, Sudbury and Addlestone in Surrey, has scored a hat-trick of appearances in the annual list of 1,000 Companies to Inspire Britain, which is compiled by the LSE. 08 | CarDealerMag.co.uk

Sales manager given suspended jail sentence for ‘reckless’ driving. bit.ly/reckless-113

Two-seat sports car from Kia could be just four years away

Stinger Concept dream is not dead, says manufacturer’s design chief

T

he dream of a two-seat Kia sports car to rival the Mazda MX-5 is not dead, just resting – that’s according to the firm’s design chief Peter Schreyer. The GT4 Stinger Concept, above, showcased at the Detroit Motor Show back in 2014, could be resurrected in a similar guise and on the roads as soon as 2021. Ever since the striking concept, with its svelte curves and bold orange paintwork, broke cover in the States three years ago, there’s been little news as to whether it’ll ever make it into production. However, now Schreyer has revealed it’s still very much on his to-do list and, what’s more, could be here in as little as four years. ‘The GT4 Stinger Concept dream is certainly not dead,’ he explained. ‘It’s not going to be here in the next four years… but then you never know. ‘I still wouldn’t mind making

by JAMES BAGGOTT @CarDealerEd

one. The four-door sedan Stinger we unveiled in Detroit this year is probably more important at this stage, but a smaller sports car like the GT4 Stinger would be very cool.’ Schreyer’s comments are the biggest hint yet from one of Kia’s most senior bosses that the dream of making a Mazda MX-5-rivalling sports car is still in the minds of the Korean firm’s top brass. Kia’s UK team believe a small sports car could certainly work here too – but the ultimate test will be how successful the Stinger is when it arrives later this year. A spokesman for Kia UK said: ‘We know we have sporty variants of smaller cars to come, but they are versions of existing cars, so to go down the two-seat coupe or open-top

market is another significant step – but it’s one we look at all the time.’ The Kia spokesman said the firm is now working on preparing the market so the public is ready to accept a twoseat sports car from the manufacturer, if and when it arrives. ‘Peter [Schreyer] has always wanted to do a proper sports car but the brand, certainly from 2004 to 2015, just wasn’t ready for it,’ explained the spokesman. ‘Peter personally has a strong feel for that kind of car, though. ‘The last 10 years of Kia in the UK have been about building credibility, building a strong market base and building an acceptance of Kia as more than just a value option. If Stinger works as it should, then it will open up another part of the market. ‘If a high-performance, good-value sports car is on the cards then we have to continue to build the brand to be ready for that.’

Sporty version of Stonic could be joining the line-up in future A SPORTY version of the new Kia Stonic SUV looks highly likely to join Kia’s line-up. The firm’s UK chief, Paul Philpott, has said the hard work of establishing the manufacturer in the UK is now complete and it can now look to exploit its position with more exciting, niche models. As we’ve reported in previous editions of Car Dealer, coming later this year will be the Stinger sports car – a car Philpott believes will find around 2,000 homes in the UK – and that’ll be closely followed by a succession of exciting models. Philpott said: ‘The Stonic design

lends itself to the potential for sporty offerings. Look at what Nissan has managed to do with the Nismo Juke. It’s a viable option.’ The Stonic SUV is targeted with taking the fight to the segmentleading Juke, which clocks up more than 40,000 sales a year. It is unlikely

to undercut it on price, though, with the Stonic expected to start from around £15,000. Philpott says it won’t topple the market leader either. ‘We won’t sell more than the Juke,’ he confirmed. ‘Next year in its first full year on sale we expect to sell between 8-10,000 Stonics. ‘Stonic is not built in the UK, it’s built in Korea, and I want to be conservative with estimates. ‘When we introduced Sportage we expected 23-25,000 sales a year and now sell 40,000 a year. I would rather have an order bank for Stonic than end up distress selling.’


The UK’s largest trade-only online auction. Dealer Auction is the leading online B2B car auction portal, with low fees and intelligent systems that boost profitability for trade buyers and franchised main dealers.

More than just an auction.

Exclusive Stock

Dealer Group Buy It Now

Around the Clock

Appraise-to-Trade App

Access the largest variety of stock with over 8000 vehicles on offer every month to over 4500 registered trade buyers.

Access new part-ex vehicles in-group, with our reliable, straightforward system.

Over 500 fresh cars every day, with an auction ending every 60 seconds.

Upload part-ex vehicles, images, and detailed appraisals in minutes.

62112 030717

CarDealerMag.co.uk | 09


DASHBOARD.

Lengthy tech contracts are a thing of the past, reports Codeweavers. bit.ly/tech-113

Profits and sales are on the up at McLaren Growth plans are both ‘achievable and sustainable’

B

ritish sports car and supercar manufacturer McLaren Automotive has announced another record-breaking year in terms of vehicle sales and financial performance. Profit before tax of £9.2 million from an annual sales revenue of £649.8 million in 2016 gave McLaren Automotive a fourth consecutive year of profitability in only six years, since the start of sales in 2011. This was an increase in profit before tax of 70 per cent compared to the £5.4 million reported in 2015. Operating profit of £65.8 million in 2016 was the company’s highest ever, standing at 10 per cent of turnover and representing a 180 per cent increase over 2015. The strong financial performance in 2016 was underpinned by record sales, with a total of 3,286 cars purchased. This was a 99 per cent increase over 2015 and exceeded the company’s own expectations by almost 10 per cent, with all geographical regions achieving sales growth. Mike Flewitt, McLaren Automotive’s chief executive officer, said: ‘The positive financial performance in 2016 was underpinned by a 44 per cent increase in sales revenues and

is further proof that our growth plans are both achievable and sustainable. ‘Investment in R&D and future product during the period of £129.1 million – 20 per cent of turnover – reaffirms our commitment to the Track22 Business Plan that will produce 15 new models or derivatives by the end of 2022.’ In its first full year of production, the Sports Series family accounted for 2,031 deliveries, the majority of which came from the recently-introduced McLaren 570GT and 570S models. The Super Series also continued its success story thanks, in large part, to the McLaren 675LT Coupé and Spider models. Having both sold out in a matter of weeks, the limited-production derivatives of the Super Series started production in mid2015 but continued through 2016. In total, 1,255 Super Series cars were sold in 2016. In March 2017 the second-generation McLaren Super Series, the new McLaren 720S, was launched. The new car generated immediate customer interest and some 1,500 orders have been taken to date. A new convertible Sports Series model, the 570S Spider, was announced recently and made its world debut at the Goodwood Festival of Speed.

Happy 60th birthday to the iconic Fiat 500! THE legendary and iconic Fiat 500 celebrated its 60th birthday on July 4. Rolling off the production line at Fiat’s Mirafiori plant in Turin for the first time on that same date in 1957, the groundbreaking model and world’s original city car quickly became a global phenomenon and achieved cult status. During its first production run, which ended in 1975, almost four million 500s were sold internationally, a staggering 400,000 of which can still be found on Italian roads today. After two decades in retirement, the 500 was reimagined and reborn to enormous critical 10 | CarDealerMag.co.uk

acclaim and huge commercial success in 2007. Perfectly capturing the spirit, charm and personality of the original and packed with state-of-the-art technology, the second generation became a phenomenon and cult collector’s car in its own right. To date, more than two million sales of the second-generation model have been achieved worldwide and the model has won more than 40 top industry awards, including World Car Design of the Year in 2009. Throughout its lifespan and all incarnations and special editions, the Fiat 500 has always been at the forefront of automotive style.

Greenyer A PERFECT PARTNERSHIP

Buyers’ choices need to be clearly explained

L

ast month, the Financial Ombudsman published its annual report. And some media decided it would make a good story to highlight that complaints about motor finance had increased by 73 per cent. Sadly, I am afraid this is a case of lies, damned lies and statistics. The reality is that whilst the percentage was high, it was based on a very small number. Complaints about hire purchase policies rose from 1,784 to 3,072. With motor finance – and in particular new car PCPs – coming under the spotlight for contributing to a credit boom, I think it’s important to introduce some ‘balance’. I firmly believe that the UK motor retail sector largely does a very good job of serving its customers. For many car buyers, their vehicle is absolutely essential to their daily life. And whilst it’s vital that no-one is encouraged to take out credit they cannot afford, it’s also essential that people are given the best choices when it comes to funding their vehicle. With a focus on the used car customer experience at point of sale, we introduced a range of new tools earlier this year to help our underwriting team support finance brokers and motor retailers as they strive to give customers fast and effective decisions. These new back-office tools build on the blended approach that has become the benchmark for Raphael Finance, combining automated credit assessment with ‘eyes on every case’ insight. The new Raphael Finance Credit Gateway automatically identifies applications which would be declined due to high credit risk, leaving our underwriters with more time to focus on cases which are more likely to be accepted. And this enhances the customer experience. So while the Bank of England’s Financial Stability Report, published at the end of June, suggested that there appeared to have been a lack of focus on affordability amongst lenders across all areas of consumer credit, motor industry experts have been quoted as saying they do not believe the use of finance in the motor sector is likely to trigger a new credit crunch. The fact that motor finance is backed by an asset – and an asset that is essential to daily life – makes it less at risk of default. However, with the Financial Conduct Authority set to publish new affordability rules, I believe it’s more important than ever that motor retailers find the right partners to support them. They need to be able to give their customers choice – and to explain the choices clearly.

‘The motor retail sector does a very good job of serving its customers.’

Who is Darren Greenyer? Darren Greenyer is deputy head of lending at Raphael Finance


More confidence. From auction to forecourt – if something goes wrong, we’ll put it right*.

We’ve paid out over

£500,000

in claims so far this year

See for yourself at manheim.co.uk/surecheck The smartest place to buy and sell vehicles *Terms and conditions apply. Visit our website for full details.

62112 030717

CarDealerMag.co.uk | 11


DASHBOARD. ANNOUNCEMENT

Volvo makes a big electric move

27 new members join Vertu Motors’ Masters Club. bit.ly/masters-113

Crossover boom puts the future of B-Max in jeopardy Clever Ford Fiesta-based people carrier looks unlikely to be replaced

VOLVO has announced that every vehicle it launches from 2019 will have an electric motor. Placing electrification at the core of its future business, the Swedish manufacturer said that it marked the historic end of cars that only had an internal combustion engine (ICE). The announcement represents one of the most significant moves by any car maker to embrace electrification. Håkan Samuelsson, above, president and chief executive of Volvo Cars, said: ‘People increasingly demand electrified cars. You can now pick and choose whichever electrified Volvo you wish.’ Volvo Cars will introduce electrified cars across its model range, embracing fully electric, plug-in hybrid and mild-hybrid. This means that in future there will be no Volvo car without an electric motor, as pure ICE cars are phased out and replaced by ICE cars enhanced with electrified options. ‘This announcement marks the end of the solely combustion-engine-powered car,’ said Samuelsson.

F

ord’s B-Max mini-MPV could be facing the chop in the next 12 months, as the company eyes up concentrating on a selection of crossovers in place of the slowselling model. Launched in 2012, the B-Max quickly stood out for its ingenious pillar-less sliding rear doors and impressive driving dynamics. But, with sales for MPVs falling and crossovers booming, the cleverlypackaged Fiesta-based people carrier looks unlikely to be replaced – and may not even stick around until the end of the year. Instead, Ford is hoping to bolster its B-segment offerings with both the heavily refreshed EcoSport SUV –

by JON REAY @JonReay

set to start production later in the year at the European factory which currently builds the B-Max – and the yet-to-be-launched Fiesta Active crossover. While Ford has committed to recruiting nearly 1,000 new employees to build the EcoSport at the Craiova plant in Romania – an increase of nearly one third on its current workforce – the potential for spare production capacity from a B-Max departure could have played a role in why the plant was chosen to produce the refreshed compact SUV. ‘The plant will gain EcoSport,

Could the B-Max be approaching the end of the road?

FUEL CHOICE

Diesel’s getting a lot less popular THE popularity of diesels, which currently make up around 40 per cent of cars on UK roads, is set to drop sharply as just 23 per cent of motorists plan to buy diesel next time, research from Autocar has revealed. Petrol is set to dominate the market with 60 per cent of buyers predicted to go for unleaded – while more than a sixth of diesel car owners are set to swap to a hybrid or electric car next time. 12 | CarDealerMag.co.uk

and the team’s got to get [ready for production of] that,’ a Ford spokesman told us. ‘Then the B-Max’s position will be decided.’ The B-Max wouldn’t be the first mini-MPV to face the chop this year, following similar moves from rivals such as Vauxhall, Nissan, Citroen, Kia and Hyundai to usher out bulbous B-segment people carriers in favour of more fashionable, if less practical, crossover replacements. ‘At the moment it’s a challenge, and its volumes indicate what’s happening in the whole market,’ the spokesman added. ‘It’s no reflection on B-Max as a product, but [its future] is being reviewed.’

Ford EcoSport to get new look and European production base THE Ford EcoSport is to receive its most comprehensive facelift yet, bestowing the compact crossover with a fresh new look, improved quality and the option of four-wheel-drive. UK-bound EcoSports will also be made in Europe for the first time, with production moving from a plant in India to Craiova, Romania. It’s likely that the look of the updated model will echo that of the US-market EcoSport – revealed at last year’s LA motor show. Expect exterior styling closer to that of the Kuga and Edge, and interior elements like an

eight-inch touch screen with SYNC3 as seen in the new Fiesta. A Ford spokesman revealed that cars bound for the UK are likely to get some additional styling tweaks all of their own too, with additional contrasting colour combinations and the illusion of a ‘floating’ roof thanks

to colour-coordinated pillars. The changes will help distance EcoSport from the soon-to-belaunched Fiesta Active crossover – a standard Fiesta with raised ride height and additional plastic body cladding, if not increased off-roading ability. ‘We think the customers are quite different,’ Ford of Europe lead engineer for Fiesta, Seamus McDermott, explained. ‘The EcoSport is more of an SUV, while the Active is more of a crossover if you like. We’re just giving the customers more options.’


See every detail. 360° imagery that helps you make better decisions and bigger profits.

Multi-award winning 360 imagery exclusively at Manheim

See for yourself at manheim.co.uk/360 The smartest place to buy and sell vehicles

62112 030717

CarDealerMag.co.uk | 13


DASHBOARD.

WeBuyAnyCar TV ads are cleared Watchdog rules that two commercials were not misleading and did not breach any codes

C

laims that two TV adverts for webuyanycar.com were misleading have been dismissed. Seen in January and February this year, the first advert featured a man speaking to the camera about how it was possible to save time when selling a vehicle through WeBuyAnyCar. He said: ‘I might have got more money for my car if I’d sold it privately. ‘Yeah, I said it. But I asked myself, how much do I value my time? Am I gonna put up with all that hassle for a bit more money? Would you?’ The final scene featured a voiceover that stated: ‘Value your time? Enter your reg number now at WeBuyAnyCar.com, the UK’s favourite car-buying service.’ In the second advert, pictured above right, a woman spoke to the camera about her experience of WeBuyAnyCar, saying: ‘I just sold my car with WeBuyAnyCar.com even though I might have got a better price if I sold it privately. ‘Yeah, they just let me say that in an ad for WeBuyAnyCar.com ’cause they know quite a lot of us value our time more than a few extra quid. Do you?’

The final scene featured the same voiceover. A total of 13 people lodged complaints with the Advertising Standards Authority (ASA), saying they believed that the price difference between WeBuyAnyCar and private sellers could be as much as several hundred pounds and challenged whether the claims ‘for a bit more money’ and ‘a few extra quid’ were misleading. In response, WeBuyAnyCar said the phrases didn’t indicate particular amounts but instead were common colloquial phrases used to convey ‘more’, and that the claims were in keeping with the overall style and tone of the ads.

It pointed out that it had sought advice from the ASA’s own specialist team. Rejecting the complaints, the ASA said in its ruling that the adverts weren’t misleading and didn’t breach any codes, so no further action was needed. It stated: ‘We acknowledged that both phrases could be seen as trivialising the price difference between WeBuyAnyCar and a private sale. However, we considered that the phrases were used in everyday language and would be understood differently depending on the context in which they were used. ‘Both ads were styled in a casual manner with elements of humour and the actors’ tones were informal, which reinforced the light-hearted nature of the ads. We considered that the primary message of the ads was that consumers may value their time more than the price difference between WeBuyAnyCar and a private sale. ‘In that context we considered that the claims “a bit more money” and “a few extra quid” would be understood only to mean that selling a car through WeBuyAnyCar would generally result in less money, rather than creating an expectation regarding the likely size of that price difference.’

www.desperateseller.co.uk | www.facebook.com/desperateseller.co.uk | twitter.com/despseller

14 | CarDealerMag.co.uk


Your gateway to millions of buyers Motoring.co.uk choose better

MAGAZINE

By advertising with Motors.co.uk your stock is automatically advertised on our extensive network of partner sites, reaching 5.1 million buyers each month.

Connect with Motors.co.uk

0845 265 6000* sales@motors.co.uk

59378 110517

* Calls to telephone numbers starting with 0845 will cost you 7p per minute plus your phone company’s access charge.

CarDealerMag.co.uk | 15


DASHBOARD.

Part 4: Top 10 industry insights For the latest chapter of our exclusive series, Dan Read asked car dealers about the time they saw the light, their big breakthroughs and what advice they’d give

W

e all have an imaginary lightbulb above our heads, but wouldn’t it be nice if it flashed a little more often? Unfortunately, there’s no magic switch, but at least we can take inspiration from others. That’s why this month we’ve asked some successful traders about the moments of clarity – and the big breakthroughs – that changed their businesses for good. Because despite best-laid plans, things don’t always go the way you think they might. With any new business, it takes time to see the light, and sometimes it happens when you least expect it. Just think, some of history’s finest thinkers had their eureka moments while sat in the bath or under a tree. Maybe you’ll have yours while reading this very magazine…

Jordan Glynne-Jones blakedowncarcompany.co.uk

1

Eureka moment: Deciding to specialise

When we first started trading, we sold mundane, everyday cars, but almost immediately we realised that – with the huge volume of dealers entering the industry at the moment – it was difficult to sell ‘normal’ cars. As a result, we were slow to grow. So we took inspiration from our love of sports and performance cars, starting with hot hatches – things like the Focus ST, Astra VXR and Civic Type R – and quickly discovered a huge, fast-moving market for this type of car. Now our stock is made up almost entirely of hot hatches, super-saloons and big-engined coupes, and we recently moved into the sports prestige market with Audi RS cars, BMW M cars and AMG Mercedes.

2

Big breakthrough: Moving premises

For the first nine months we traded from home, which obviously had severe limitations and difficulties, so it was a huge step forward when we decided to move our operations into a real base. We initially found a small industrial unit with room for around 12 cars, but shortly before signing the lease we realised that – with the rate at which we were growing – this could have restricted us considerably. At the very last minute we changed our minds and found a large, detached industrial unit almost twice the size as the one we had been considering, with an

16 | CarDealerMag.co.uk

adjacent forecourt. We can now stock around 40 vehicles and would have outgrown the smaller premises months ago!

3

Advice to others: Leave room to grow

A commercial lease is a long-term commitment, so make sure you find one with the physical room to grow, otherwise you’ll be stuck. We would say the most important moment in the progression of our business so far has been the decision to take a chance on larger premises with plenty of room to grow.

Alan Harding jaautos.co.uk, Sutton

4

Eureka moment: Earning trust

I grew up around the motor trade, and my current place has been going for 13 years now. I quickly realised that customers were really putting their faith in me, and seeing as some car dealers have a shady reputation, I decided to try to change that by making people feel as comfortable as possible. I felt if I could help change people’s opinions of car dealers then I’d be elevated above those who see customers as just a number.

5

Big breakthrough: Winning awards

One moment that really stands out was becoming a finalist in the 2014 Sutton Business Awards – it was the first time

a car dealer had been featured! I followed this up by being commended in the 2015 awards for customer service (proving car dealers aren’t all shady), and finally won the best SME category in 2016. This has lifted my local profile and helped my business to survive.

6

Advice to others: Fight like a boxer…

My advice is very simple. Believe in your abilities, work hard and dedicate yourself to doing things properly. If it works for Floyd Mayweather then it can work for us!


IN ASSOCIATION WITH

‘My lightbulb moment was realising the power of social media. It’s such a useful tool.’ UMESH SAMANI, SPECIALISTCARS-STOKE.CO.UK

be over-estimated. Just think – when looking at online reviews of hotels or restaurants, we like to know we’re going to be looked after and have a great experience, and it’s the same for people buying cars. So many of my customers tell me how reading my online reviews influenced their decision to buy a car from me.

8

Big breakthrough: Car Dealer gongs!

Umesh Samani specialistcars-stoke.co.uk

7

Eureka moment: Harnessing social media

My lightbulb moment was realising the power of social media. It’s such a useful tool – not only for connecting with potential customers but also for connecting with other dealers and like-minded people – not just in the motor trade but elsewhere, too. Similarly, the power of online reviews cannot

One moment that sticks in my mind was the time I won two Car Dealer awards on the same night – and I’m not just saying that because I’m talking to you! I won the Dealers’ Dealer of the Year and Social Media User of the Year awards, which gave me and my business a massive boost. A small, one-man band was now recognised throughout the country. I can honestly say that I am still buzzing from that... and it was in 2013 !

9

Advice to others: Act honourably

Treat customers fairly, look after them in the same way you would like to be looked after, and it will pay dividends. It’s amazing how little it costs to help a customer sometimes – it may only be a matter of £50

or £100 to sort an issue but in my experience, that customer will either return or recommend someone simply because of that little gesture of goodwill made by you.

Luke Doran blakedowncarcompany.co.uk

10

Advice to others: Go the extra mile

Make sure customers are happy – not only during a sale but, even more importantly, in the future as well. It can be stressful when used cars go wrong, but it’s inevitable, so dealing with it in the right way is what matters. Spending time and money that you aren’t legally obliged to isn’t easy, but it’s important that you do. In the long run, looking after customers, gaining good reviews, building a strong NEXT MONTH reputation and earning repeat SOURCING business will easily STOCK pay for any initial financial outlays.

CarDealerMag.co.uk | 17


18 | CarDealerMag.co.uk

MG dealer celebrates its 40th anniversary LINCS: MG dealer NT Shaw of Louth is celebrating its 40th anniversary with fun summer activities. The festivities began when the Lincolnshire-based dealership exhibited at the Louth Classic Car Show, where it displayed two cars from the current MG range – the 3 supermini and the GS SUV – alongside other examples of the marque from the 1970s. It then sponsored the Mid-Lincs Rover Club Rally at East Kirkby, where the new MG XS SUV was on show. The dealer will also be supporting the January 2018 pantomime production of Snow White and the Seven Dwarfs at the town’s Riverhead Theatre.

NORTH YORKS: Performance car dealer Redline Specialist Cars has become the vehicle sponsor of professional cyclist Scott Thwaites. The 27-year-old is riding for ‘Team Dimension Data for Qhubeka’ in the 2017 Tour de France, which started in Düsseldorf, Germany, and will end 2,200 miles later in Paris on July 23. Redline is providing him with a liveried white Audi A4 Avant 2.0-litre TDI Ultra Sport and will be offering customers a chance to meet and cycle with the World Tour rider at organised events. Rob Milner, managing director of the Knaresborough-based car dealer, said: ‘We’re really delighted to be working with Scott.’

TEESSIDE: Motor dealer group Jennings strengthened its support of Teesside Golf Club’s annual proam competition by sponsoring the event for the second consecutive year. Team Jennings closed the proceedings by being the last to tee off behind 32 teams of four players consisting of professionals, club members and business community representatives. Participants enjoyed a competitive afternoon, followed by a meal and an award presentation at the clubhouse. Club president and secretary Steve Wood said: ‘We are delighted to have such a long-established and wellrespected business partner like Jennings on board.’

MANCHESTER: The largest dedicated DS Store in the north-west of England has opened. Located on a new site in Windsor Street, the 268 square metre showroom combines the physical and the virtual and can display six DS cars around a lounge area. It also boasts crafted items from collectors’ models to leather bags, which DS Automobiles says will allow people ‘to try before they buy in a stylish and chic environment that is nonetheless a warm and welcoming atmosphere’. Jason Chick, general manager of the store, said: ‘The new DS Store Manchester has a very different feel to a traditional car showroom.’

Cyclist Scott backed by Audi dealership

Fore! Jennings sponsors golf event again

‘Chic and stylish’ DS store opens its doors

GLASGOW: A man who performed a sex act in a dealership car park was said to have been ‘horrified’ by his own behaviour, the Largs and Millport Weekly News reported. David Sharpe, 29, was sentenced at Glasgow Sheriff Court for committing the explicit act. He admitted that he committed an act of public indecency and exposed himself at Arnold Clark on Garscube Road in Maryhill. Sharpe, of Boyd Street, Glasgow, had been drinking two days before the incident and had consumed an ecstasy tablet before witnesses saw him on top of a vehicle. He pulled down his trousers, exposed himself and performed a sex act. Sharpe’s defending agent said the incident, which took place on April 27 this year, was a ‘wake-up call’ for him. He was ordered to carry out 140 hours of unpaid work.

Man performed sex act in dealer’s car park

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

News from around the UK DASHBOARD.


CarDealerMag.co.uk | 19

Midnight walk was a ‘fantastic event’ SURREY: A Honda dealership partnered with a local hospice to organise a ladies-only midnight walk, raising more than £50,000. The event, sponsored by Trident Honda, saw hundreds of women participate in the eight-mile walk, all donned in superhero capes and other fancy dress outfits, to support Woking & Sam Beare Hospice and celebrate the work of those associated with the establishment. Richard Roberts, managing director at Trident Honda, said: ‘This was the tenth midnight walk and it was another fantastic event.’

CORNWALL: A woman died after a Vauxhall Vectra in which she was travelling careered off a main road and smashed into a row of 22 parked cars on a dealership forecourt. The black saloon left the A390 near St Austell in Cornwall just after 9.45pm on June 25, police said. The female passenger, who was in her 40s, died at the scene at Andrew Toms Cars, while the male driver was taken to hospital with ‘serious and significant’ injuries.

CANTERBURY: Barretts Honda has given away a new 2017 Honda Civic to Lyminge resident Steve Hickmott after he won a competition on the manufacturer’s social media channels. The Civic Live Challenge saw Honda fans from across the UK, Spain, France and Germany take part in a series of challenges during a 48-hour virtual treasure hunt to decipher a postcode where a Civic was hidden. Using the hashtag #CivicLiveChallenge, the competition drew thousands of entrants, with Hickmott’s being chosen at random after he cracked the clues. He’ll own the Civic, with insurance included, for a year.

Steve’s won a Honda Civic for a year!

SUFFOLK: An Ipswich Volvo dealership – Donald’s Garage in West End Road – sponsored a local school’s motorsport challenge recently. The event was held at the town’s Orwell Park School and was aimed at pupils aged 12 and 13. Students were tasked with the challenge of approaching local companies to sponsor the day, helping to fine-tune both writing and relationship-building skills. The brains behind the event was David Horton, head of digital strategy at the school, who said: ‘Motor racing has always been a passion of mine and my 15-year-old son competes in the sport. The aim of the day was to develop many different skills whilst also being fun and competitive.’

Volvo showroom backs motorsport event

Woman dies as car careers onto forecourt

BIRMINGHAM: Volkswagen has opened its first ‘store’ – in Birmingham’s Bullring shopping centre. With an annual footfall of 36 million people and situated in the heart of the UK’s second largest city, the Bullring is an ideal location for VW to develop its new retailing venture. Partnering it is Johnsons Cars, which was formed in 1999 and has run Johnsons Volkswagen Retailers in the Birmingham area since 2004. The 1,921 sq ft retail space will give people the chance to browse and buy from the VW range of passenger cars. There will be 10 car parking spaces for dedicated test drives, with the test drive area a brief walk away.

First VW ‘store’ opens in shopping centre


DASHBOARD. JCT600

Porsche centre opens in Teesside

A BRAND new Porsche Centre has been opened by dealer group JCT600 in north-east England. Located on Concorde Way near Stockton, Porsche Centre Teesside will complement existing centres in Leeds, Newcastle and Sheffield. The opening demonstrates a major investment in the Porsche brand and in the Teesside community. Our picture shows JCT600 chairman Jack Tordoff, right, and chief executive John Tordoff, at the new centre.

BEADLES

Action needed to stop car industry ‘falling off a cliff’

Honda’s Swindon manufacturing facility

Dealership group We need to be honest with ourselves about Brexit prospects, warns SMMT has new owners DEALERSHIP group Beadles has been bought by New York Stock Exchange-listed Group 1 Automotive. With 12 showrooms across Kent, Surrey and Essex, selling the Jaguar, Land Rover, Volkswagen, Skoda, Toyota, Vauxhall and Kia brands, it will continue to operate under the Beadles name and is expected to generate approximately £260 million a year.

NEW FACILITY

Sytner joins forces with Aston Martin ASTON Martin has opened a purpose-built dealership in Nottingham. The new facility, in Thane Road, is the first Aston Martin dealership for the Sytner Group, which has 140 specialist showrooms across the UK. The 2,300 square metre building includes a 23-car showroom offering the full range of Aston Martin sports cars and an extensive range of ‘Timeless’ preowned models. 20 | CarDealerMag.co.uk

T

he government needs to sort an interim arrangement with the EU to stop the UK car industry plunging ‘off a cliff edge’ as Brexit nears, trade body the Society of Motor Manufacturers and Traders has said. It added that such a stopgap agreement was needed to maintain membership of the single market and customs union until a final agreement on a new relationship with the EU was negotiated and put in place. The SMMT said a final agreement would be ‘hugely complex’ and as such, couldn’t be reached by March 2019. Without interim arrangements being agreed, businesses would be forced to trade under World Trade Organisation (WTO) rules, which it labelled ‘the worst foreseeable outcome for the sector, its employees and the British economy’. The SMMT said it was time to be pragmatic about what could be achieved in the time available and what the consequences would be if the UK left without a deal. It said the UK and EU automotive sectors were highly integrated and any new relationship would need to address tariff and non-

by JOHN BOWMAN john@blackballmedia.co.uk

tariff barriers plus other issues. SMMT chief executive Mike Hawes said: ‘We accept that we are leaving the European Union and we share the desire for that departure to be a success. But our biggest fear is that in two years’ time we fall off a cliff edge – no deal, outside the single market and customs union, and trading on inferior WTO terms. This would undermine our competitiveness and our ability to attract the investment that is critical to future growth. ‘That’s why we have to be honest with ourselves. If the UK cannot secure – and implement – a bespoke and comprehensive new relationship with the EU in two years’ time, we need a back-up plan. ‘We need government to seek an interim arrangement whereby we stay within the single market and customs union until that

new relationship is implemented.’ The EU is by far the UK’s biggest automotive export market, taking more than half our finished vehicles, and the sector exports to more than 160 global markets. Commenting on the SMMT’s call for action, Honda Motor Europe senior vice-president Ian Howells, said: ‘Honda remains committed over the long term to its sales and manufacturing activities in the UK and Europe. ‘The recent £200m investment into Swindon’s Honda UK manufacturing plant has evolved the facility into the global production hub for the Civic hatchback, exporting to North America, Japan and the EU.’ Echoing the SMMT, he added: ‘My request would be for the UK government to do all it can to seek a deal that will promote free and frictionless trade between the UK and the EU, while ensuring the continued competitiveness of the businesses that make up our supply chain.’

‘My request would be for the UK government to seek a deal that will promote free and frictionless trade’ Ian Howells, senior vice-president, Honda Motor Europe


CarDealerMag.co.uk | 21


22 | CarDealerMag.co.uk


DASHBOARD.

It wouldn’t take a genius to make life better for customers I

t’s a peculiarly British trait to complain about the levels of service we receive in shops and restaurants. Perhaps in some cases it’s justified. Having said that, there is one place where the level of attention paid to customers can’t really be complained about: Apple Stores. The way staff members treat their punters is generally seen as the gold standard for retail environments and it’s a model much studied by car dealerships that are going for a seamless and up-to-date sales process. Apple Stores are laid out in a way that makes their products easy to touch and try, and friendly assistants offer helpful advice rather than go for the hard-sell. However, when it comes to Apple Stores, there could be a couple of Apple flaws (see what I did there?). The process I’ve outlined above is all well and good when you’re buying one of their shiny new products, but what about when something goes wrong? I thought it was about time someone pointed out a couple of little snags in their way of working so we can all learn from them and work towards a better world. Mistake number one: A scatterbrain approach to dealing with customers. Do you remember that novel system when you used to go somewhere like a grocer’s or a children’s shoe shop? The assistant would ask you to pull a paper number from a little machine and you’d wait for it to be called out. I’m not saying Apple should use technology from yesteryear in its shops, but some way of knowing when you’re going to be dealt with would help. You see, I had an issue with my MacBook recently and went to my local Apple Store where they told me I could book an appointment with a Genius but that I would have to wait about an hour. I wasn’t being pushy, and I wasn’t demanding to be seen immediately. After all, waiting for an hour didn’t seem that bad, particularly as I was in a shopping centre and it was lunchtime. The assistant took my phone number and said I’d get a text when my appointment came round. I went away and ate but was still halfway through my food when the text arrived. Fair play to Apple – with convenience in mind, it gave me the option of delaying it by half an hour or another full hour. I chose the half-hour option and got another text when the next appointment was available.

Rebecca

Mistake number two: There’s no waiting area. See, it wasn’t really time for my appointment, and I was thrown into a ‘queue’ of other people waiting to be seen. I say ‘queue’ but it was more of a throng of impatient customers hanging around towards the back of the store (plenty of whom were happy to push past me and others waiting for attention, I might add). I’m sure that there is some system that the Apple Geniuses were working to, but we had no idea. This is something that most dealerships do very well in comparison. You have waiting areas and coffee machines, magazines to read and staff who reassure their customers that they’re doing their best to get them seen to as soon as possible. True, I only waited – on my feet – for about 15 minutes, but that was more than long enough for me to start getting annoyed and planning this column. Once I had been seen, they took my beloved MacBook

Chaplin ‘This is something that THE VIEW FROM BEHIND THE SCENES

most dealerships do very well in comparison’ away and we went back to your typically efficient Apple processes. I had an email confirming it had been taken and another message a few days later saying it could be collected. Now, I’m not saying I needed a CitNOW video of what happened when they took it apart or a detailed report of the process, but a bit of human contact would have been nice – maybe just a call from someone explaining the work they had to do. There were plenty of other nifty aspects of getting my laptop repaired that are worth noting, however. When I first went online to try to book an appointment, I could speak to someone via live chat and they would attempt to diagnose it then and there. Or I could call them via the website to explain over the phone – saving both them and me some time if it was a known issue or a simple fix (fingers crossed it wouldn’t have been ‘have you tried turning it off and on again?’). The fact I could book an appointment online for my local store was also a bonus. So, Apple, if you’re listening, why not put a comfy sofa in your store for next time one of my gadgets breaks? Some drinks or snacks wouldn’t go amiss either.

Who is Rebecca Chaplin? Rebecca is head of editorial at Blackball Media and presents news programmes and features on its online video channel Trade Plates TV. CarDealerMag.co.uk | 23


30-Day Contracts The Way Forward for Dealer Technology 6 points to consider when reviewing your software

1

2

3

4

5

6

To what extent is the technology being used/still relevant?

Is the software outdated? Technology should be continuously enhanced to remain fresh and relevant

24 | CarDealerMag.co.uk www.codeweavers.net

What is the contract length/notice period?

Benchmark the software to ensure you have the optimal tools available

contactus@codeweavers.net

How eectively is the vendor developing their software and their support to your business?

What data protection provisions are in place in light of GDPR?

0800 021 0888


DASHBOARD.

Around the world Dealer news from somewhere other than here

POLAND

A SECOND-hand car dealer from Poland who drove more than 3,000 miles from Ireland to Russia and back was stopped at a Garda checkpoint on his return and found to have no insurance. A court in Waterford heard that Janusz Majdzinski, 50, planned to meet his son in Russia, and that the son was supposed to have driven on the return leg of the trip. But he was unable to travel as his wife was ill. The case was adjourned and will be dismissed if Majdzinski stays out of trouble for a year.

CANADA

MERCEDES-Benz Canada and its national dealer network have recorded their best-ever sales performance for the first half of a year. From January to June, 2017, the company delivered a total of 26,473 units, an increase of 9.9 per cent over 2016. Brian D Fulton, president and CEO of Mercedes-Benz Canada, said: ‘Our employees, dealer network and colleagues at MercedesBenz financial services deserve a lot of credit.’

KENYA

THE boss of a car hire company in Bungoma, western Kenya, enlisted the services of a witch doctor when a customer spiked his drink and stole a car. The witch doctor arranged for a swarm of bees to attack the alleged thief, named in reports as Francis Sikadigu, and lead him to a nearby police station after he was forced to abandon the vehicle.

CHINA

THE government has introduced new rules that will give dealers more freedom, the China Daily website reported. The new regulations replace established policies that, among other things, said that a dealer who wants to sell cars must be authorised by a car maker. When a dealership was authorised, the old regulations stipulated that it was only allowed to sell cars from that brand. Now, car dealers do not have to be authorised by automakers to sell cars – and a dealer authorised by one brand is allowed to sell other marques too if he or she so wishes.

INDIA

DEALERS representing General Motors, which has decided to stop selling vehicles in India by the end of the year, have been staging protests against the American car maker. Most of GM’s 96 Indian dealers, which operate around 140 showrooms across the subcontinent, are said to be unhappy with the company’s offer of around 12 per cent of total investments they have made.

www.desperateseller.co.uk | www.facebook.com/desperateseller.co.uk | twitter.com/despseller

CarDealerMag.co.uk | 25


SURVEY.

We were absolutely overwhelmed by the volume of responses to this year’s poll. Thank you to each and every one of our readers who took part. 26 | CarDealerMag.co.uk

I

t’s the annual survey of automotive manufacturers and suppliers that increases in importance and popularity every year. And this year’s glittering Car Dealer Power ceremony was probably the best yet ! As we’ve said before, the survey’s true power comes from YOU – the readers of Car Dealer Magazine. For the past eight 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 an unrivalled 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 – a key feature of the exercise. Once again this year, more of you than ever filled out the online and paper versions of the survey and it was great that, as usual, you were completely frank and honest with your views. This is welcome news for the manufacturers

WINNING and suppliers who win plaudits and praise – but not so good for those who are falling short. On the following pages we will be recognising the best suppliers in the business – the ones who offer fantastic products and unparalleled service to the UK’s dealers. And then, from page 39, we will continue with the manufacturer rankings and analysis of that part of the survey. Car Dealer Power is genuinely special. The winners are part of an elite club that is doing the job properly as recognised by dealers. The team who bring you the magazine have 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 and certificates. Winners and highly commended winners were invited to Portsmouth’s stunning Spinnaker


Watch the Car Dealer Power video at bit.ly/CDP-17

Cleaning Product of the Year Winner: Autoglym Highly commended: GardX Highly commended: Autosmart

Paul Rowlands, senior commercial manager at Autoglym, picked up the first trophy of the night from Car Dealer founder James Baggott

Dylan Haskell, director of sales at GardX Protection Ltd, receives the firm’s highly commended award

SUPPLIERS Tower to celebrate their achievements at a blacktie ceremony on July 6. The founder of Car Dealer magazine and host of the ceremony, James Baggott, said: ‘The Car Dealer Power Awards are becoming more and more important every year because they represent the views and opinions of those on the frontline of the UK’s motor trade – car dealers themselves. ‘We were absolutely overwhelmed by the volume of responses to this year’s poll. Thank you to each and every one of our readers who took part and we hope those who were able to join us in Portsmouth had a good night. ‘We certainly did and we can’t wait to do it all again next year!’ Now find out who won what with 23 pages of coverage from the event

All smiles: We had a room full of winners at Car Dealer Power 2017 – well done to everyone who either took home a trophy or was highly commended on the night

CLEANING products are incredibly important to dealerships of all shapes and sizes. After all, no customer would want to buy a dirty car so every vehicle on display needs to be spick and span at all times. Interestingly, our three finalists in this category found themselves in the top three last year – so they must be doing something right! Our top prize in this category went to a company that is so highlyregarded, it has a royal warrant to recognise its 52 years of expertise – guests were asked to put their hands together for Autoglym. Our two highly commended winners in this category were GardX and Autosmart, who deserve huge congratulations too. Dylan Haskell of GardX was present to collect the company’s award.

CarDealerMag.co.uk | 27


SURVEY. Recruitment Agency of the Year

Trade-to-Trade Remarketer of the Year

Winner: Perfect Placement

Winner: Dealer Auction

Highly commended: Progress Recruitment Solutions

Highly commended: BCA

Highly commended: John Gibson Associates

Highly commended: Autotrade-mail Jimi Matthews and Alister Smith of Perfect Placement collect their award from Car Dealer’s Rebecca Chaplin

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 extremely tough. That’s why a successful recruitment agency can prove to be an invaluable partner. Our winners know this and received lots of positive feedback in this year’s Car Dealer Power Survey. Survey respondents said, ‘they’re so helpful, it’s a pleasure to deal with them’ and ‘credit where it’s due, the level of service I received was firstclass’. Our winner in this category, repeating their success of last year, was a firm that always delivers a high level of service: Perfect Placement! Progress Recruitment Solutions and John Gibson Associates (JGA) were highly commended in this category so well done to all three.

Consumer Lead Generation Site of the Year Winner: iVendi Highly commended: Codeweavers Highly commended: What Car? Chris Masters of iVendi collects the company’s award from James Baggott

IN today’s digitally-focussed world, no dealer can rely on a steady stream of customers without the help of online lead generation. Leads alone cannot be relied on, it’s about quality, as we all know. That was the recurring theme with the comments in this category. Dealers continually reported high-quality leads from our finalists. And interestingly, and in contrast to some other categories, we had three different names to last year’s top trio. Our top dog was a company proud to deliver the next generation of online vehicle retailing solutions: iVendi. And we said our two highly commended winners – Codeweavers and What Car? – would blush if they saw the positive comments submitted about them! 28 | CarDealerMag.co.uk

Kieran TeeBoon, operations director at Dealer Auction, collects the Car Dealer Power trophy from magazine founder James Baggott Guy Thomas of BCA (second left) and Chris Penny, representing Autotrademail, with their highly commended awards

FINDING suitable stock for the forecourt is a constant challenge – so choosing the right trade-to-trade remarketing partner is key. Our winner in this category is a clever online auction which offers trade cars direct from franchised main dealers nationwide. All registered users are vetted to ensure the highest standards of professionalism. That applies to both franchised main dealers and trade buyers – and it’s something the readers of Car Dealer certainly seem to appreciate. For an amazing fourth year in a row, our winner in this category was Dealer Auction. Our two highly commended winners – Autotrade-mail and BCA – are stalwarts of the automotive industry and received lots of complimentary comments as well. Well done all.

Guests had plenty of time to admire the view across Portsmouth Harbour from the top of the Spinnaker Tower


Used Car Valuations Provider of the Year

Dealer Management System of the Year

Winner: cap hpi

Winner: Dragon2000

Highly commended: Auto Trader

Highly commended: Pinewood

Highly commended: Glass’s

Highly commended: CDK Global Mark Cooper of Dragon2000 received the company’s fourth consecutive DMS of the Year trophy

Wendy Swaine of cap hpi collects the trophy from Rebecca Chaplin

Chris Penny was delighted to pick up Auto Trader’s award in this all-important category

DEALERSHIPS large and small have a multitude of factors to worry about and keep track of at all times. Our three finalists in this category have all proved that they make a vital difference to the day-to-day running of businesses up and down the country and received extremely high praise from their customers once again. It was congratulations, for the fourth year in a row, to a company that provides dealer management systems, car dealer websites and mobile apps to more than 1,000 of the UK’s best dealerships: Dragon2000! Dealers praised them to the skies and said the company was great to do business with. Many congratulations were due, too, to our two highly commended winners: Pinewood and CDK Global.

Provenance Check Provider of the Year Winner: cap hpi

ONLY by knowing a car’s true value can a dealer make the most important decision in their business – how much to buy for, and how much to sell at. In this category, there were some well-known names – which came as no surprise. Our overall winner received more than twice the votes of its nearest competitor. It’s a company that has graced the Car Dealer Power stage in the past, and has earned its place thanks to the fact that it delivers extensive data which is carefully quantified by its editors. So it was a big ‘well done’ to cap hpi – and also to our two highly commended winners, Auto Trader and Glass’s. Chris Penny was on hand to pick up Auto Trader’s award.

Highly commended: Experian Highly commended: Motorcheck Another trophy for cap hpi! Wendy Swaine collects the award from Rebecca Chaplin

PROVENANCE checking 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 part-exchange has not been stolen, is not subject to outstanding finance – and has definitely never been written off. We said that our winner, cap hpi, was clearly doing something right to keep dealers happy, because it was taking home the trophy for the fifth year in a row! Its award-winning suite of tools and products helps dealers of all shapes and sizes get the most out of its expansive automotive dataset. Experian and Motorcheck took the highly commended spots so it was a big ‘well done’ to them too. CarDealerMag.co.uk | 29


SURVEY. Video Provider of the Year

Website Provider For Franchised Dealers

Winner: CitNOW

Winner: GForces

Highly commended: Dragon2000

Highly commended: Bluesky Interactive

Highly commended: AutosOnShow

Highly commended: Autoweb Design

Gordon Grant, global sales director at CitNOW, receives the company’s award from James Baggott

Andrew McNulty (centre) and James Coleman with GForces’ trophy

Martin Dew, head of operations at Autoweb Design, picks up a highly commended award

Karen McKenzie, operations manager at Dragon2000, collects a welldeserved highly commended award

VIDEO is something we’re passionate about at Car Dealer Magazine. It’s a hugely important part of what we do, so we all take a great interest in this category. More and more customers expect video these days when interacting with dealerships – it’s far more effective than photography when it comes to attracting a customer and sealing that deal. It’s important to note that video, used properly by any retailer, creates transparency. Transparency leads to trust. The customer’s trust ensures that sales and profits increase in all aspects of that business. Not our words, but an extract from the website of our winning video provider – CitNOW! And well done to our two highly commended winners, Dragon2000 and AutosOnShow.

WE hear that phrase time and time again – it’s all about bricks and clicks – and the clicks are increasing in importance all the time. Your physical dealership can be absolutely top-dollar, but without the right website, your brand could be lost in a sea of online searches. This was a hotly contested category, as it is every year, but our top three really stood out against the rest with outstanding comments and scores. The readers of Car Dealer voted in their thousands for our winner, which for 2017 was GForces! Rebecca pointed out that it is a business that has been at the top of its game for many years now, and was even triumphant in the website design category at the inaugural Car Dealer Power Awards back in 2010. Bluesky Interactive and Autoweb Design took the highly commended spots this year, so well done to them.

Great company, great food and great conversation at Car Dealer Power 2017 30 | CarDealerMag.co.uk


Watch the Car Dealer Power video at bit.ly/CDP-17

Website Provider for Independent Dealers

Finance Provider of the Year – Sub-Prime

Winner: Spidersnet

Winner: First Response

Highly commended: Starkwood Media Group

Highly commended: Evolution Funding

Highly commended: 67 Degrees

Highly commended: Mallard Vehicle Finance Paul Scrivens of Spidersnet picks up the company’s trophy

Dealers can sell more cars if they provide funding for sub-prime customers

FOR independent dealers, having the right website is just as important as it is for a franchised dealer. Why? Well, in the competitive independent car dealer market, standing out from rivals is even more crucial. What’s more, online, even the smallest dealers can compete with the big boys… the internet really is a level playing field. Our winner tonight – Spidersnet – received high praise indeed. One survey respondent said ‘so glad we chose this company’ and another commented ‘our requests and feedback were acted on immediately’. You can’t get better than that ! Starkwood Media Group and 67 Degrees were highly commended in this category so it was a big ‘well done’ to those two companies too.

OUR winners in this category sadly couldn’t be with us on the evening of the awards ceremony – but we were nonetheless delighted to announce that the trophy was going to a company we are very familiar with here at Car Dealer – First Response. That said, the team behind the mag has no say who wins any of the gongs of course, it’s all down to our readers. With offices in Nottingham, Leigh and Glasgow, First Response employs more than 200 people who are dedicated to serving customers and perfecting its products, processes and services. Two other well-known players in this field took the highly commended slots – Evolution Funding and Mallard Vehicle Finance. Well done all!

Finance Provider of the Year – Prime

Motor Factor of the Year

Winner: MotoNovo

Winner: Euro Car Parts

Highly commended: Blackhorse

Highly commended: Andrew Page

Highly commended: Close Brothers Motor Finance

Highly commended: SC Motor Factors Karl Werner, CEO of MotoNovo’s motor finance division: ‘This is a marvellous accolade’

MOTONOVO were the deserving winners of the ‘Finance Provider of the Year – Prime’ category. And although they were unable to be with us on the evening of the awards ceremony, they were delighted to have triumphed. Karl Werner, CEO of MotoNovo’s motor finance division, said: ‘We are delighted to have won this award. ‘Being recognised by our customers in what is a highly competitive market is a marvellous accolade and is a reflection on the efforts of the whole team at MotoNovo Finance. We pride ourselves on our dealercentric approach and on our capacity to innovate continuously.’ Blackhorse and Close Brothers Motor Finance were highly commended in this category.

Euro Car Parts vans are a familiar sight on the highways and byways of Britain

WITH more than 200 branches nationwide and 130,000 parts available, Euro Car Parts is the UK’s number-one supplier of car parts – and was our winner in the Motor Factor of the Year category. The company offers service parts at very competitive prices. And it received very positive comments in our survey with one respondent saying ‘they’re the firm I always choose for parts’ and another adding, ‘they never let me down’. Sadly, they weren’t with us on the evening of the Car Dealer Power awards ceremony – and neither were our two highly commended winners: Andrew Page and SC Motor Factors. Well done to all three though – and maybe we’ll see you next year! CarDealerMag.co.uk | 31


SURVEY. Warranty Provider of the Year

Paint Protection Provider of the Year

Winner: The WMS Group

Winner: GardX

Highly commended: The Warranty Group

Highly commended: Supagard

Highly commended: Car Care Plan

Highly commended: Autoglym Dave Rogers of The WMS Group collects the company’s trophy from James Baggott

WITH ever-increasing pressure on margins, warranties are incredibly valuable to dealers in terms of helping them boost their bottom line and providing value and peace of mind for their customers. The leading players in this field have to be right at the top of their game to succeed in Car Dealer Power. According to our survey respondents, our winner this year, The WMS Group, offers a great product. It’s designed to help dealers improve their customer retention, workshop activity and, ultimately, profitability. It’s a company which is truly passionate about helping its dealer partners provide the very best products and aftersales support to its customers. Highly commended were The Warranty Group and Car Care Plan.

Dylan Haskell and Amanda Massey of GardX with Rebecca Chaplin

Paul Harvey of Autoglym collects his company’s highly commended award

WE SAY it every year – but this category is always extremely competitive. Paint protection is a win-win for dealers and customers alike, providing a boost to dealers’ balance sheets and adding value for the customer. Our winner – GardX – is a company which works with high-profile dealer groups to provide products that voters have given glowing reviews of. They do far more than just provide paint and interior protection products, although that is probably what they are best known for. One dealer told us: ‘I love this company, they’re great people to do business with’ while another said ‘they’re very process-driven which enables all my staff to engage fully’. Highly commended were Supagard and Autoglym, with Supagard unfortunately not present on the night.

The Car Dealer Power Awards are magic – quite literally! Our magician had guests scratching their heads with some incredible tricks, right 32 | CarDealerMag.co.uk


Auction House of the Year

Trade Insurance Provider of the Year

Winner: BCA

Winner: Unicom

Highly commended: Aston Barclay

Highly commended: Plan Insurance Brokers

Highly commended: Manheim

Highly commended: Tradex

Craig Purvey and Guy Thomas of BCA with James Baggott

Lee Middleton of Unicom with Rebecca Chaplin

Tom Mapes and Toby Webb of Aston Barclay; and Matthew Bamber of Manheim, with their awards

ALL three of our finalists in this category have worked extremely hard to move with the times in recent years, offering innovative online solutions to dealers as well as comprehensively-equipped auction halls in strategic locations around the UK. This year’s winner – BCA – really shows that it’s on the dealer’s side, keeping up to date with technology and constantly developing its offering to keep ahead of the pack. As the UK’s – and Europe’s – largest used vehicle marketplace, it won plenty of plaudits from survey respondents this year who were full of praise for services such as Partner Finance and BCA Live Online. Our highly commended award-winners this year were Aston Barclay and Manheim. Good work, everybody!

Daniel Dove of Plan Insurance Brokers picks up his company’s highly commended certificate

THIS is a category that will mean little to the average car buyer out there, but for dealers it’s a must. Trade insurance is something a business would be unable to operate without. But, who to choose? Despite all of our nominees getting an incredible number of votes, our winner – Unicom – stood head and shoulders above the rest with its team of motor trade experts winning plenty of praise for really knowing their stuff. Unicom is considered one of the best motor trade insurance providers in the UK because of its commitment to its clients. Part of the Unicom Insurance ‘way’ is to keep its clients in the loop on all things motor trade insurance. Highly commended in this category were Plan Insurance Brokers and Tradex.

Guests were treated to pre-dinner drinks and appetisers before sitting down to dinner and enjoying the awards ceremony CarDealerMag.co.uk | 33


SURVEY. Online Advertiser of New Cars

Online Advertiser of Used Cars

Winner: carwow

Winner: Auto Trader

Highly commended: Motors.co.uk

Highly commended: Motors.co.uk

Highly commended: Auto Trader

Highly commended: CarGurus

Andrew Hooks, chief operating officer at carwow, receives the gong

Marc Thornborough of Auto Trader collects his well-deserved trophy

Our two highly commended winners with their awards: Phil Jones, of Motors.co.uk and Chris Penny of Auto Trader

Phil Jones of Motors. co.uk collects another highly commended award from Rebecca Chaplin

WE had a fantastic response in this all-important category… and it’s always highly competitive. If you’re a dealer selling new cars, it’s incredibly important to have as many routes to market as possible, and our three finalists excel in this field. Our winner, carwow, has a profile that’s increasing all the time and continues to push forward with its innovative way of selling cars. It offers dealers primed and ready customers straight through the door and takes away the hassle of negotiation. Guests were also asked to give a round of applause for our two highly commended winners, Motors.co.uk and Auto Trader, both of whom are well-known and highly respected names. Well done, everybody!

SHIFTING used metal is key to car dealerships up and down the land, so they need a reliable partner to develop and protect this important income stream. Our winner in this category, Auto Trader, has continued to grow and enhance its offering for both dealers and consumers. As the UK and Ireland’s largest digital automotive marketplace, it sits at the heart of the UK’s vehicle-buying process and its primary activity is to help vehicle retailers compete effectively in the marketplace. Well done to them – and also to our two highly commended winners, CarGurus and Motors.co.uk. Sadly, no-one from CarGurus was present on the night, but Phil Jones from Motors.co.uk returned to the stage to collect his award.

Suzuki’s Dale Wyatt, left, braves the glass floor at the top of the Spinnaker Tower before dinner is served, right 34 | CarDealerMag.co.uk


Watch the Car Dealer Power video at bit.ly/CDP-17

Product Innovation of the Year

Extra Mile Award

Winner: Spincar / GardX

Winner: Lawgistics

Highly commended: Auto Trader Part Exchange Joel Combes, sales and marketing director at Lawgistics, is presented with his company’s award by James Baggott

Dylan Haskell and Victor (Billy) Coutin of GardX were presented with their trophy by Rebecca Chaplin, head of editorial at Blackball Media

Marc Thornborough collects Auto Trader’s highly commended award

THE Extra Mile Award has no finalists as such . . . just one overall winner who received the most votes from dealers. Our winning company, Lawgistics, continues to go above and beyond the call of duty to serve its customers and the wider motor industry. Its staff are always willing to give advice and share their valuable knowledge. One comment from our readers said ‘you always feel as though they are on your side’ while another remarked ‘they provide a shoulder to lean on when you’re getting serious grief’. High praise indeed – and what’s more, Lawgistics has now won this award for three years running! Of course the firm is well-known to readers of Car Dealer as it provides legal advice within the mag every month.

Manufacturer Marketing Initiative of the Year Winner: Suzuki WE broke with tradition a little bit this year because we included a highly commended award for this category, something we don’t normally do. There were two new products that attracted hundreds of votes from our readers and we wanted to acknowledge them both. Our winner, Spincar, being brought to the UK in association with GardX, is a very clever piece of kit indeed that has been well-received across the industry. The technology behind it creates an interactive, 360-degree view of a car meaning a customer can look all the way around the exterior and interior of a vehicle, zooming, panning and clicking on ‘hotspots’ to learn more. Auto Trader’s Part Exchange tool was a close second.

Highly commended: Audi Highly commended: Mercedes-Benz

Charity prize draw ONCE again at Car Dealer Power, we held a charity raffle which this year raised £750 for the Gosport And Fareham Inshore Rescue Service, the independent lifeboat station in Car Dealer’s home town of Gosport, Hampshire. It’s a charity close to James Baggott’s heart as he devotes a lot of time to the service as a volunteer crew member. So – who won what? • A pair of tickets to the MotoGP in late August courtesy of Suzuki: Paul Philpott of Kia. • Two VIP tickets to the British Touring Car Championships at Rockingham courtesy of GardX: Alun Parry of Suzuki. • Two tickets to the Classic Car Show and a behind-the-scenes tour with Mike Brewer: Carl Taylor and Lawrence Bacon, Seat.

SUZUKI picked up this prestigious gong because of its partnership with TV favourites Ant and Dec. The presence of the duo proved entertaining as well as effective, with Suzuki’s cars featured during the commercial breaks of shows such as Saturday Night Takeaway as well as other prime-time favourites. Dealers were delighted with the tie-up and the initiative was way ahead of others nominated in this category. Dale Wyatt, general manager for dealer development at Suzuki, said: ‘It was great to win the award. We were determined to do something that would make us famous, so we decided to work with the most famous duo in the UK and it’s paid off. It’s been brilliant.’ Audi and Mercedes-Benz were highly commended. Well done! CarDealerMag.co.uk | 35


SURVEY.

36 | CarDealerMag.co.uk


Watch the Car Dealer Power video at bit.ly/CDP-17

Car of the Year Winner: Seat Ateca Highly commended: Kia Sportage Highly commended: Ford Fiesta THIS year’s Car of the Year at Car Dealer Power was the Seat Ateca. James Baggott, Car Dealer founder, told guests at the awards ceremony that Seat’s first SUV clinched the title thanks to a healthy haul of votes from dealers representing rival manufacturers. Addressing the audience on the night, he said: ‘A stylish new SUV, the Ateca has been billed as a combination of distinctive design, driving fun, urban versatility and compelling utility. ‘It has done wonders to raise awareness of Seat, which brought it to market. In double-quick time, the Ateca has established itself as a firm favourite among the motoring media, UK car buyers and, of course, dealers who represent the brand.’ Seat UK director Richard Harrison said: ‘We knew the Ateca had great potential to succeed, and the impact it has had in the UK has surpassed even our own ambitious aspirations. The Car Dealer Power award is particularly valued, as it demonstrates respect and appreciation from within the auto retail industry – across all brands, not just from those who work in our own Seat dealerships.’ Highly commended were the Kia Sportage and Ford Fiesta.

CarDealerMag.co.uk | 37


SHOWROOM CLASSROOM Trying to find time to train your employees? With new LetsULearn Premium all courses are run online. From financial promotions to product suitability, we can help deliver more skills for your staff, with less time away from your business. Discover more at: blackhorse.co.uk/abetterway

A better way of doing business 38 | CarDealerMag.co.uk


SURVEY.

I

Watch the Car Dealer Power video at bit.ly/CDP-17

MANUFACTURERS

t’s that time of the year again! Once again, we bring you the results of the manufacturers section of our fascinating Car Dealer Power survey – the time when the world’s carmakers find out what their UK dealers really think of them. We give dealers right across the UK the chance to say exactly what they think about their manufacturer partners across a wide variety of categories – and they’re not afraid to be honest! As in previous years, 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, not one Hyundai dealership filled in our survey form last year, so they didn’t make the list. This year, however, they do feature, indicating the required level of participation. Each survey respondent is asked to give their 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 – and there are

quite a few of those, as you will see. 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! 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. News of this year’s overall winner might not come as a complete surprise – the result was announced at the Car Dealer Power Awards night on July 6 after all – but this is the first time the whole list of manufacturers for 2017 has been published anywhere. Happy reading!

CarDealerMag.co.uk | 39


SURVEY.

31

Watch the Car Dealer Power video at bit.ly/CDP-17

Abarth

37.5%

OVERALL SCORE: NEW ENTRY

30

Renault

39.5%

OVERALL SCORE: DOWN 9

IT’S never good to be bottom of the list but in this case, we’re sure Abarth will be happy to have made it as our first new entry of 2017. However, the dealers who run these franchises don’t seem particularly happy. Last year, the manufacturer launched the 124 Spider, a sportier version of the car produced by sister brand Fiat and the first two-seater convertible the carmaker has produced for a very long time. Along the way, it has continued to produce much-loved versions of the 500 too. Where Abarth is doing its best work is when it comes to marketing, according to its dealers. However, it was let down by its warranty and didn’t fare much better in the finance category.

IT’S certainly a shame to see Renault dropping to almost the bottom of the pile, as the business has been making an effort to promote new products to customers in refreshed and revamped showrooms. It was the internet section where it scored lowest, with activity around forward planning also failing to impress dealers. As you’ll see in the chart below, opinions were fairly low for Renault across the board, with dealers feeling most positive about marketing and finance offers. This year, the brand has been extremely focused on its electric car offering and promoting the greener side of its business with its Formula E involvement, plus the Zoe with an extended electric range.

ABARTH SCORES

RENAULT SCORES

100

100

90

90

80

80

Porsche

42.2%

OVERALL SCORE: DOWN 9

28

42

38

37

32

45

40

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

30

35

In te rn et Ne w su c pp ar ly

40

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

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

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

0

Fi na nc e

10

0

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

20

10

29

35

30

35

50 40

55

60

50

42

38

45

36

36

42

38

35

26

20

28

30

35

52

50 40

PERCENTAGE

70

60

35

PERCENTAGE

70

Mini

43.6%

OVERALL SCORE: DOWN 12

IT’S unsurprising that with the new product and image Porsche has, that once again its highest score was in the area of brand awareness with 58 per cent. We’ve just come off the back of the unveil of the 911 GT2 RS at Goodwood where it stunned the crowds and once again reaffirmed the prominence of the brand. It goes without saying that yet another win at Le Mans for the company has also been a fantastic accolade for the carmaker to shout about. That said, coming 29th in the list (down nine places from last year) isn’t amazingly impressive and the company needs to do quite a bit of work in the ‘accessibility’ category, among others. It will be interesting to see if Porsche can rise up the ranks in 2018.

ACROSS the board, Mini has seen dealer opinions drop over the past 12 months, according to our respondents. However, it can be pleased that when it comes to manufacturer return on investment, things are looking better. Last year, the brand scored only 25 per cent in this area but they’ve improved for 2017, to reach 40 per cent. It’s not surprising, since the brand’s dealer network delivered the highest annual performance since 2001. It’s still not as fantastic as previous years for the quirky BMW brand, which scored 80 per cent for ROI in the 2015 Car Dealer Power Survey. The carmaker has had some fantastic new and updated product this year too, let’s not forget, which has spelled happy times for car retailers.

PORSCHE SCORES

MINI SCORES

100

100

90

90

80

80

10

40

42

40

44

40

44

45

41

47

41

30

48

55

50 40

20 10

40 | 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

60

40

40

38

38

40

35 25

20

30

44

58

55 40

30

55

50 40

PERCENTAGE

70

60

50

PERCENTAGE

70


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

SCORES

POOR

27

AVERAGE

GOOD

EXCELLENT

SsangYong

44.3%

OVERALL SCORE: DOWN 2

FAULTLESS

26

Jaguar

45.4%

OVERALL SCORE: DOWN 14

IT’S been a transformational time for SsangYong over the last two years, however its dealers still aren’t completely satisfied. It seems the positivity surrounding the new Tivoli, which was launched last year, has started to fade as the carmaker has dropped marginally in the rankings. Accessibility has remained a strong point for the brand, with the small size of the company playing to its advantage as dealers reported that they were often able to get through easily with any queries. SsangYong should be pleased with this year’s results though, as overall, its scores have generally improved. With more new models aimed at a wider consumer audience, it’s likely we can expect to see more happy dealers in next year’s results.

HERE’S a shocker! Jaguar, which was up 12 places in 2016 because of some transformational new product, has fallen by 14 places to 26th. What has really hurt it is manufacturer requirements, where it has scored merely 10 per cent, and its website (20 per cent). Jaguar has had a recent revamp of its range and the F-Pace has been a huge success. Next up will be the eagerly anticipated E-Pace, a new compact performance SUV that is expected to be a new big-seller for the carmaker. Brand awareness has remained high with sponsorship of sporting events such as Wimbledon. Recent efforts at Goodwood have also kept the image of Jaguar and its association with British racing in the forefront of buyers’ minds.

SSANGYONG SCORES

JAGUAR SCORES

100

100

90

90

80

80

10

40

40

45

60

10

20

25

MG

46.4%

OVERALL SCORE: NEW ENTRY

24

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

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

0

Fi na nc e

0

58

50

40

55

55

65 52

PERCENTAGE

46

50 40

20

10

60

30

25

20

46

39

50 30

35

40

50

60

30

45

50 40

62

70

60

48

PERCENTAGE

70

Mitsubishi

48.5%

OVERALL SCORE: DOWN 7

ANOTHER new entry for 2017. The carmaker has a small range including the MG 3 hatchback and its newest model – the GS. With affordability in mind, these cars are a great option for car buyers who want simplicity when it comes to purchasing a new motor. The brand is preparing to launch a new compact SUV to the range, called the MG XS, moving away from its traditional family cars and into a more popular segment. Its dealers were most impressed with the warranties, new car supply, manufacturer requirements and the bonus structure. When all of these factors work well it does lead to happy retailers. Unfortunately, its low brand awareness score of 28 per cent brought its overall tally down.

MITSUBISHI should be proud to have maintained a score very close to last year’s, dropping just under two per cent. However, tough competition has pushed it down seven places in the rankings. While warranties were a huge positive for dealers – scoring the brand 80 per cent in 2016 – this year the figure has dropped to 53 per cent. Where the carmaker is getting the most recognition for is its new car supply, which is impressive with the distance they need to travel ! The L200 has remained hugely important for the brand, with its strong mix of abilities whether buyers are using it for work or pleasure. Meanwhile, the Outlander PHEV remains a transformational model for Mitsubishi.

MG SCORES

MITSUBISHI SCORES

100

100

90

90

80

80

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

38

51

58

65 48

48

47

50

58

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

10

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

53

20

10

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

30

30

41

38

58

50 40

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

20

58 30

43

58

55

46 28

48

58

40

30

43

50 40

60

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

PERCENTAGE

70

60

Fi na nc e

PERCENTAGE

70

CarDealerMag.co.uk | 41


SURVEY.

23

Isuzu

49.8%

OVERALL SCORE: NEW ENTRY

22

Subaru

50.5%

OVERALL SCORE: NEW ENTRY

THE newly-on-sale Isuzu D-Max reached showrooms earlier this year after an extensive overhaul. It’s not surprising that both customers and dealers are pleased with the five-year or 125,000-mile warranty. That was reflected in the 60 per cent score our respondents gave it. While scores are largely based around the 50 per cent mark, this is nothing to be disappointed with considering Isuzu’s relatively small dealer network and the fact the only model they sell in the UK is the said D-Max pick-up. Isuzu also celebrated 100 years of vehicle manufacture last year, so may be a bit disappointed by a brand awareness score of 47 per cent considering their many celebrations during 2016.

ANOTHER Japanese carmaker and another new entry at 22 – this time Subaru. Subaru has had a mixed bag in our Car Dealer Power survey this year, dealers scoring warranties, the internet and website and requirements all highly, but the manufacturer scoring disappointingly elsewhere. In the area of used cars, an area many brands have prioritised in recent years, the figure was just 31 per cent. A low score for its brand awareness should be particularly eye-opening for Subaru. A company once steeped in motorsport and with renowned performance credentials, seems to have lost its way in this sector. Despite declining sales recently, Subaru’s focus on all-wheel drive still appeals to many, however.

ISUZU SCORES

SUBARU SCORES

100

100

90

90

80

80

Skoda

50.6%

20

44

43

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

31

40

61

53

68

60 38

36

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

10

0 Fi na nc e

20

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

30

10

OVERALL SCORE: DOWN 16

60

40

20

21

63

50

59

PERCENTAGE

48

48

47

46

60

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

30

45

52

48

51

47

48

40

52

50

60

70

60

55

PERCENTAGE

70

Suzuki

51.9%

OVERALL SCORE: DOWN 11

SKODA SCORES

SUZUKI SCORES

100

100

90

90

80

80

48

48

45

47

45

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

47

47

68 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

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

10

0 Fi na nc e

20

10

44

30

45

40

20

42 | CarDealerMag.co.uk

57

50

57

60

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

PERCENTAGE

54

48

50

40

48

55 45

42

45

42

30

54

50 40

70

65

60

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

PERCENTAGE

70

77

WHEN you look at the rankings below, you’ll see Suzuki have excelled in one particular area – marketing. With a score of 77 per cent, it’s really impressed its dealers here. That’s thanks to the efforts they’ve been putting into their television advertising campaign featuring Ant and Dec. On top of that, it has been working hard on online video campaigns which you’ll likely have seen either on social media, on its website or in showrooms. A revamp to the Swift received mixed reviews, but generally, Suzuki cars remain popular with buyers and that makes dealers’ lives easier, of course. Accessibility was another area where the company did well this year, with brand awareness and finance not far behind.

70

IT seems Skoda is on a rollercoaster with its dealers! Last year, the brand rose from the ashes, being placed fifth after dropping to 23rd in 2015. Now they’ve slipped back down to 21st. What was a very respectable overall score of 75 per cent has also fallen dramatically to 50.6 per cent. Finance offers are still strong, with an approval rating of 70 per cent, while warranties are also in favour. Below-par figures in used cars, marketing and brand awareness should set alarm bells ringing at the Czech brand, however, especially when they have been developing a more sophisticated design language for their vehicles. Skoda will be hoping the new Yeti-replacing Karoq will help it climb back up the charts next year.


SCORES

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

19

AVERAGE

GOOD

EXCELLENT

Toyota

52.9%

OVERALL SCORE: DOWN 1

FAULTLESS

18

Jeep

54.8%

OVERALL SCORE: NEW ENTRY

IT CERTAINLY seems to be a big year for new entries and Jeep is another new arrival in 18th place this year – a pretty good achievement for the American 4x4 manufacturer. With scores in a relatively narrow band across the board, but all in the ‘average’ or ‘good’ categories, Jeep have not let themselves down in any particular area. Finance offers, strong brand awareness, requirements and bonuses all scored well. Despite disappointing sales – down 50 per cent for the year to date, dealers seem largely happy. With fresh models such as the Renegade, and a new Compass being launched at the end of the year, Jeep have much to be excited about when it comes to their current and future product range.

TOYOTA SCORES

JEEP SCORES

100

100

90

90

80

80

Fiat

57.5%

OVERALL SCORE: UP 11

55

60

60

50

55

60

52

60

16

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

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

10

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

20

0 Fi na nc e

45

35

30

10

17

53

40

48

50

55

60

60

PERCENTAGE

68 49

58

20

35

42 30

30

42

50 40

70

60

72

72

60

47

PERCENTAGE

70

78

IT’S a respectable result for Toyota – dropping just one place – but in fact, its overall score is up on last year. Where the brand was let down was on accessibility and bonus structure, which were rated at 30 and 35 per cent respectively. Toyota scored highest on brand awareness, probably because it is well-known for having a clear focus on hybrid powertrains, notably the successful Prius model. With futuristic models such as the hydrogen-powered Mirai already on sale, it has established itself as a company dedicated to testing fuels of the future. Toyota’s five-year warranty is also appealing to dealers and customers, with 72 per cent satisfaction compared with 57 per cent last year.

Vauxhall

59.1%

OVERALL SCORE: DOWN 12

FIAT SCORES

VAUXHALL SCORES

100

100

90

90

80

80

58

59

51

59

59

59

59

60

60

59

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

10

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

20

In te rn et Ne w su c pp ar ly

57

30

10

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

61

50 40

20

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

67

60

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

57 45

30

52

46

57

59

57

57

52

47

57

50 40

PERCENTAGE

70

60

Fi na nc e

PERCENTAGE

70

84

VAUXHALL has tumbled down the rankings in the 2017 Car Dealer Power Survey after just missing out on a podium position last year. While not failing in any particular area, Vauxhall recorded a solid set of figures – also not excelling in any one category, unlike many other manufacturers. The Griffin-badged brand performed exceptionally well in areas such as new car supply last year, but didn’t quite manage to repeat that success. Although enticing finance offers have continued to impress, Vauxhall’s dwindling sales may help to explain their fall in this year’s survey. Sales are down around 15 per cent in the year-to-date. How will the brand fare next year, after its first 12 months as part of the PSA family? Time will tell.

77

FIAT has had an impressive turnaround after a poor result in the 2016 Car Dealer Power Survey – being bottom of the pile. Huge improvements in the levels of marketing and brand awareness have impressed Fiat dealers. While finance offer satisfaction has dropped (the brand’s only success in the 2016 survey), elsewhere there are gains across the board. Brand awareness is incredibly strong, at 84 per cent, with a streamline of the Fiat line-up, and a push for the ‘500’ range helping the Italian marque. The launch of the 124 Spider, Tipo and L200-based Fullback pick-up have opened the brand up again to new customers after having a limited product range for quite a long time. Well done, Fiat.

CarDealerMag.co.uk | 43


SURVEY.

15

Watch the Car Dealer Power video at bit.ly/CDP-17

Mercedes-Benz

59.4%

OVERALL SCORE: NON-MOVER

14

BMW

60.5%

OVERALL SCORE: DOWN 1

BMW has retained a similar position to last year and now sits cheek-byjowl with its rival Mercedes-Benz in our survey. BMW received solid results across the board, but excelled with their used cars, something many manufacturers still neglect. Its ‘Approved Used’ scheme has had much success and this has been acknowledged by dealers. BMW has significantly improved in two particular areas – internet and bonus schemes – although it is interesting how BMW’s brand awareness has actually dropped since last year. Perhaps an overlapping model range is to blame for causing confusion amongst BMW dealers and customers, with exceptionally similar products such as the 3-Series and 4-Series Gran Coupe part of the range.

MERCEDES-BENZ SCORES

BMW SCORES

100

100

90

90

80

80

75

MERCEDES-BENZ will be happy that it has retained the same position as last year. Continuous new model launches and facelifts keep the range fresh, and dealers like that. Although Mercedes is in the same position as last year, its overall satisfaction scores have actually improved by almost six per cent – an indication of how competitive the market is becoming. No area in particular let the marque down, although finance offers, warranty and aftersales are all ranked quite low for such a premium manufacturer. Meanwhile, accessibility has improved significantly. However, Mercedes may still be disappointed that it is lagging behind its rival German manufacturers, BMW and Audi.

12

52

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

54

54

66

68

66

65

60

59

65

In te rn et Ne w su c pp ar ly

Fi na nc e

In te rn et Ne w su c pp ar ly

61.3%

OVERALL SCORE: UP 6

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

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

10

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

20

10

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

30

20

Mazda

60

40

30

13

60

50

57

60

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

40

PERCENTAGE

57

56

58

58

65

65

70

66

56

55

54

54

50

53

60

Fi na nc e

PERCENTAGE

70

Citroen

63.2%

OVERALL SCORE: DOWN 6

CITROEN SCORES

100

100

90

90

80

80

52

60

60

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

55

72 60

60

58

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

10

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

20

10

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

30

20

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

40

30

44 | CarDealerMag.co.uk

63

50

59

60

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

40

PERCENTAGE

62

63

61

59

58

61

61

61

60

65

60

62

50

70

64

60

Fi na nc e

PERCENTAGE

70

74

MAZDA SCORES

72

IT has been a slightly disappointing year for Citroen in Car Dealer Power, which has seen it slip out of the top 10. Scores across the board have decreased for the brand. Key areas in decline are marketing, accessibility, forward planning and ROI. Finance offers remain highly ranked for Citroen in our survey, but they no longer seem to impress dealers quite as much as they once did. A 21 per cent decline in sales for the brand in the yearto-date could help explain the rise in dealer dissatisfaction. Whilst this result should not be regarded as bad – the position of 12th is certainly not to be sniffed at – the results below might well spark a bit of a debate at Citroen’s UK headquarters. Zut alors!

76

IT’S a pleasing result for Mazda, one of few manufacturers which has actually climbed up the charts this year. With consistent score improvements on 2016, the Japanese brand has much to celebrate. Dealers rated the manufacturer particularly highly on marketing, which came in at 65 per cent. They are also impressed by the firm’s finance offers, warranty and bonus schemes. Despite disappointing UK sales for Mazda so far in 2017 – down 14 per cent in the year-to-date – it appears dealers aren’t too concerned by this. Excellent reviews for the CX-5 crossover as well as the MX-5 retaining its crown as one of the best sports cars currently on sale ensure the brand offers something for everyone.


SCORES

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

11

AVERAGE

GOOD

Peugeot

64.3%

OVERALL SCORE: UP 13

FAULTLESS

10

Nissan

66.7%

OVERALL SCORE: UP 1

PEUGEOT SCORES

NISSAN SCORES

100

100

90

90

80

80

69.5%

OVERALL SCORE: UP 1

8

68

60

50

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

47

59

59

70

75

77

72

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

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

10

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

20

10

Fi na nc e

30

20

Volvo

70

50 40

30

9

74

60

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

40

PERCENTAGE

61

70

63

61

60

59

68

64

64

61

50

64

68

68

60

86

NISSAN should be pleased with this year’s result, securing a top-10 finish. Undoubtedly, Nissan’s continual investment in its Sunderland plant, showing its support for the UK, as well as having key models such as the Qashqai, Juke and Pulsar all made in Blighty, helps forge a strong relationship between Nissan and its dealers. Marketing was Nissan’s key strength in this year’s Car Dealer Power Survey and something dealers are obviously impressed with. While the manufacturer excelled in many areas, there are still glaring issues which have not been rectified. Accessibility and requirements still score relatively low, as they did in 2016. A bit of a mixed bag for the team to ponder at the brand’s UK HQ, then.

75

PEUGEOT has had a great result this year. Solid scores and improvements across the board have resulted in a strong performance from the brand. Its dealers were most impressed with requirements, where it scored a useful 75 per cent. It appears the manufacturer has also rectified areas which dealers told us last year needed improvement – new car supply and bonus structure have both seen significant increases in this year’s survey. Surprisingly for Peugeot, perhaps, their sales have actually fallen 13 per cent in the year-to-date. However, new models such as the 3008 and freshly-launched 5008 SUV, should help get things moving in the right direction.

70 PERCENTAGE

EXCELLENT

Honda

69.8%

OVERALL SCORE: DOWN 1

75

68

64

65

69

75

69

70

70

68

75

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

10

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

20

10

In te rn et Ne w su c pp ar ly

30

20

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

69

50 40

30

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

70

60

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

PERCENTAGE

68

68

71

71

67

68

50

70

40

Fi na nc e

PERCENTAGE

60

63

80

70

71

90

80

70

100

90

71

HONDA SCORES

100

69

VOLVO SCORES

74

WHILE Honda have dropped marginally in the rankings, it is by no means a let-down. Marketing, new car supply and ROI are all huge positives say dealers, giving Honda an impressive overall total of almost 70 per cent. Honda scored disappointingly in the internet category last year, but it appears this issue has been corrected. Honda’s sales have dropped 10 per cent on last year, for the first half of 2017, which could help explain why it has slipped down the rankings. The incoming and promising Civic Type R as well as the NSX supercar should also allow the carmaker greater scope and help it appeal to a wider range of customers. The brand will also be hoping the new Civic and CR-V will help it make up any lost ground.

72

THE array of stylish new Volvos currently on sale has certainly helped the Swedish carmaker to achieve a marginal increase in the rankings this year. Increases in brand awareness will be particularly well received by Volvo, who have pushed their new corporate identity throughout their dealer network in the past couple of years. Volvo has also done especially well with their warranty and aftersales, dealers have told us. Volvo’s lowest score (63 per cent) was for new car supply, although this is by no means an embarrassing figure. With a strong current model range, helped by the new XC60, it looks as if Volvo is set for a successful future. Furthermore, Volvo’s sales figures are heading in the right direction.

CarDealerMag.co.uk | 45


SURVEY.

7

Hyundai

70.8%

OVERALL SCORE: NEW ENTRY

6

Audi

71.1%

OVERALL SCORE: UP 2

73.5%

OVERALL SCORE: DOWN 3

60

65

60

60

75

70

65

70

85

80 70

4

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

10

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

20

10

Fi na nc e

30

20

Volkswagen

84

50 40

30

5

80

60

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

40

70 PERCENTAGE

70

64

50

69

62

73

PERCENTAGE

60

70

80

70

70

90

80

69

100

90

68

100

72

AUDI SCORES

70

HYUNDAI SCORES

78

AFTER falling down the rankings in Car Dealer Power in 2016, Audi has moved back towards its 2015 top spot – although despite claiming a higher ranking, it has retained (almost) the same overall score as last year. Particularly high scores in brand awareness, warranty, marketing and finance offers have helped the premium firm succeed. Audi will be particularly proud of a brand awareness score of 85 per cent as the company has really gone to town to ensure their dealers project a premium and classy image across their network. You only need to look on the roads to notice the influx of Audi models, with their sales on the up at the moment due to increased demand for the premium badge.

85

SURPRISINGLY last year, we did not get enough respondents to include Hyundai in our survey results (the minimum number is 10 for a manufacturer to be included). Hyundai have certainly excelled this year, though, finishing above many premium manufacturers. The company’s five-year warranty is still winning over dealers, achieving an impressive 85 per cent. Finance offers and aftersales have also received much recognition. The manufacturer’s model range also keeps going from strength to strength. With the recently-unveiled Juke-rivalling Kona soon to hit dealers, Hyundai launching its sporty ‘N’ range, as well as the futuristic Ioniq receiving positive reviews, there is a lot to smile about.

Land Rover

75.3%

OVERALL SCORE: UP 10

75

76

73

73

74

76

80

73

78

78

76

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

10

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

20

10

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

30

20

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

75

50 40

30

46 | CarDealerMag.co.uk

72

60

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

50

PERCENTAGE

66

70

69

74

77

67

70

40

Fi na nc e

PERCENTAGE

60

70

80

70

78

90

80

73

100

90

79

LAND ROVER SCORES

100

77

VOLKSWAGEN SCORES

80

AFTER Land Rover dropped 10 places in 2016, they have managed to reclaim the same position they had in 2015. Narrowly missing out on a podium finish, the luxury 4x4 maker really has excelled this year in our survey. It scored highly in every category – as you would expect from a maker placed this far up the table. It recorded noticeable improvements across the board, except in the internet category (79 per cent last year and 80 per cent this). Brand awareness remains paramount for Land Rover, and they will be pleased to see a score of 78 per cent in that category. Customer deliveries of the striking new Range Rover Velar are beginning very soon, which will only improve things further.

75

VOLKSWAGEN just missed out on the top spot in last year’s survey, so there may be an element of disappointment at this placing at its Milton Keynes UK HQ, despite the fact it has remained in the top five. While still scoring highly across the board, noticeable drops were recorded in the categories of finance, warranty and requirements. Aftersales and ROI remain the areas which VW could do with improving on, although compared to manufacturers lower down the pecking order, performances are still strong. The emissions scandal also does not seem to have had too serious an effect on sales, with the company doing better than many rival brands. Its Golf was the best-selling new car in the UK in June.


SCORES

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

3

AVERAGE

GOOD

Ford

78.1%

OVERALL SCORE: NO CHANGE

FAULTLESS

2

Seat

79.4%

OVERALL SCORE: UP 21

64

81

83

82

74

81

78

87 71

76

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

10

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

20

10

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

30

20

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

87

50 40

30

Fi na nc e

77

60

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

50 40

70 PERCENTAGE

75

69

80

72

79

79

79

72

60

72

70

91

90

82

100

90

89

SEAT SCORES

100

79

FORD SCORES

83

IT HAS been an incredible year for Seat, the biggest mover in our survey this year. From a somewhat disappointing position of 23rd last year they have risen to second, just missing out on the top spot. Incredible improvements in all categories have allowed Seat to be propelled up the rankings – many percentages nearly doubling since last year – with their overall score rising from 46 per cent to 79 per cent. A warranty score of 91 per cent is astounding for the Spanish carmaker, in fact it is the best of all manufacturers in Car Dealer Power. Accessibility, forward planning and requirements were also ranked exceptionally well by our responding dealers. The launch of the Ateca crossover in the past year, as well as the stylish new Ibiza soon arriving in Seat showrooms, has only increased the level of confidence dealers are now feeling about life with the brand. The fact that sales are up nearly 20 per cent on 2016 can only help increase the feelgood factor. We have equally high hopes for Seat in 2018.

85

FORD has had another podium finish in Car Dealer Power this year, retaining its prestigious third-place position from 2016. Excellent scores for its stock management (89 per cent), brand awareness (85 per cent) and forward planning (82 per cent) have ensured the Blue Oval remains near the top of our charts. The only slightly disappointing result our dealers told us about was finance – dropping by 16 per cent – but that blip by no means undermines Ford’s impressive achievement. Despite Ford’s new car registration levels being down year-on-year by a marginal 1.68 per cent, it is expected the arrival of the new Fiesta into Ford showrooms will rectify that small deficit. (The first example of the new car had just arrived at a showroom in Birmingham at the time of writing.) Ford’s 475 UK dealers certainly seem to be happy to continue representing the manufacturer – and we’re pretty confident the company will continue to go from strength to strength.

80

PERCENTAGE

EXCELLENT

CarDealerMag.co.uk | 47


SURVEY.

48 | CarDealerMag.co.uk


Watch the Car Dealer Power video at bit.ly/CDP-17

1

Kia

86.8%

OVERALL SCORE: NO CHANGE

KIA will be delighted to have retained its crown as Manufacturer of the Year. The most prestigious and final award of the Car Dealer Power awards evening went to the UK arm of the Korean manufacturer after its dealer network voted for it in droves. And it meant that Kia was the overall winner for the second year running. Announcing the company’s triumph at the awards ceremony held at the top of Portsmouth’s stunning Spinnaker Tower on July 6, Car Dealer founder James Baggott said: ‘Our Manufacturer of the Year for 2017 probably has a separate cabinet at its UK headquarters just for trophies it picks up at Car Dealer Power. ‘This is a carmaker that’s definitely delivering for its dealer partners. It’s a brand that is seemingly unstoppable in its progress, with welldesigned and reliable cars, all delivered with a seven-year warranty. ‘Incidentally, March this year saw our winning manufacturer deliver almost 19,000 new cars to customers in the UK and reach a record first-quarter total of nearly 30,000. That’s more than it clocked up in a whole year just 10 short years ago!’ Paul Philpott, President & CEO Kia Motors UK and Ireland, said: ‘This is a really important award. It was important last year because it signalled how far we had come as a brand. ‘To win it two years running says that whether the market is strong, as it was in the first quarter, or whether it’s been much weaker, as it was in the second quarter, we’re still working with our dealers. ‘This is about a partnership between Kia and our franchised dealer network. It’s a partnership that’s only going to get stronger so watch out again next year!’

KIA SCORES

84

84

85

85

85

86

88

92

91

89

60 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

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

0 Fi na nc e

PERCENTAGE

70

84

80

84

90

91

100

CarDealerMag.co.uk | 49


Seeking motor dealer for genuine partnership

At Barclays Partner Finance, we’re looking to build a proper relationship. With dedicated support and flexible products that help you get more sales over the line, we could be your perfect match. • Dedicated field-based Sales Manager • Support from an expert motor finance team • Full product range including stock funding

• Finance decision in seconds • Tailored pricing and commission rates • Free point-of-sale materials for your showroom

Plus we can introduce you to a competitive range of Barclays business solutions. Let’s start our partnership. Call us today on 0844 811 7777*

Choice. Convenience. Control. Barclays Partner Finance is a trading name of Clydesdale Financial Services Limited, a wholly owned subsidiary of Barclays Bank PLC. Clydesdale Financial Services Limited is authorised and regulated by the Financial Conduct Authority (Financial Services Register number: 311753). Registered in England. Registered No: 2901725. Registered Office: 1 Churchill Place, London E14 5HP. BPF/MDS3/0817

50 | CarDealerMag.co.uk


barclayspartnerfinance.com

Partner Finance

*Calls will cost no more than 7p per minute plus your phone company’s access charge. (International calls will be charged at a higher rate – please check with your telecoms provider.) To maintain a quality service we may monitor or record phone calls.

CarDealerMag.co.uk | 51


FINANCE.

FLA hits out at Mail probe into ‘mis-selling’ of PCPs Trade body says nothing was ever sent through for checks on finance

T

he Finance and Leasing Association has challenged a four-page investigation by the Daily Mail in which the world of PCP agreements came under attack. The Mail claimed in its July 3 edition that ‘young drivers are being tempted into dangerously high levels of debt’ – and it warned that ‘irresponsible lending is risking another financial crash’. But Adrian Dally, head of motor finance at the FLA, the leading trade body for asset, consumer and motor finance in the UK, disputed the findings. He told Car Dealer: ‘We’ve been expecting this. We’ve known the article has been coming for some time. But to be honest, nobody was actually mis-sold anything here. They’re reporting on mystery shoppers talking to sales people but nothing was ever sent through to a finance company for actual credit checking. ‘That’s the line of defence. Responsible lending is what motor finance is about. As a finance company, you don’t have a business unless what you lend comes back to you. That’s why we have a thorough underwriting process. Nobody [mentioned in the Daily Mail] went through that. ‘But equally, further on in the article, where the Mail talks about the Financial Conduct Authority investigating irresponsible lending, that’s just not true. They’re not doing that. They are not investigating anything and they have never asserted there is irresponsible lending at all.

Car Dealer Advert Horizontal 2.pdf 2

C

M

Y

CM

MY

CY

CMY

K

52 | CarDealerMag.co.uk

Flashback to the Mail’s investigation ‘They are doing an exploratory piece of work to understand a big market they have just taken responsibility for.’ Asked if he would go so far as to dismiss the Daily Mail investigation, Dally said: ‘That’s a strong word but I think we’d certainly challenge what they’re implying. ‘As I have said, the FCA is certainly not investigating irresponsible lending and also, there are bits towards the end of the report where the Mail talks about securitisation – the selling-on of investments – where, again, they’ve not paid any attention to what the Bank of England was saying when it published its Financial Stability Report.’ The world of automotive finance was included in the report, Dally recalled, and it was found that even if there was a significant reduction in used car prices, the effect on lenders’ 01/03/2017 13:37:03

balance sheets would be ‘pretty negligible’ – and would certainly not lead to another financial crash. He told us: ‘What they modelled was a 13 per cent reduction in residual values below what they’re already reducing by – which, of course, is completely unprecedented historically. Even under that extreme scenario, Mark Carney, the governor of the Bank of England, said the effect on the financial system would be pretty negligible. ‘And when he was asked about risks in motor finance generally, he said the Bank of England was ”sanguine” about this market. It’s very disappointing that the Daily Mail doesn’t appear to have checked what the most authoritative source in the land is saying.’ Dally added: ‘You’re just seeing the first part of the story here. You’re seeing the ”hello” part of the conversation, not the actual conversation itself.’

DIESEL

Credit deals for used ‘may help demand’ USED car PCPs could play a crucial role in maintaining demand for diesel cars if the current backlash continues, says iVendi. James Tew, chief executive of the e-commerce specialist firm, said one of the key issues now surrounding diesel was consumer worry that a vehicle’s future value may be hit by changes in market sentiment or even legislation – and that a PCP removed this concern. ‘While it is important to keep the issue in perspective, the fact that new car diesel sales fell 20 per cent in May is probably a definite indicator of a long-term trend that will see a general reduction in preference for diesels. ‘This will inevitably feed through into the used car sector and, in fact, there is anecdotal evidence that this is starting to happen in a fairly low-key manner.’ He added: ‘It does seem inevitable that sentiment against diesel will grow, and the market should move to reassure buyers that they remain a highly viable choice. Used car PCPs are one way of doing this. They take the potential uncertainty out of a diesel purchase by guaranteeing the future residual value of the car being bought.’ Tew said iVendi would closely monitor the overall trends covering diesel cars to look at changes in how they were being financed.


IN ASSOCIATION WITH

Customer feedback is the best way to shape your developments I

’ve just got back off holiday to the amazing news that yet again we have won the title of Sub-Prime Finance Provider of the Year at the Car Dealer Power Awards [see page 31]. I’d personally like to thank every dealer that voted for us this year! We’ve done a lot throughout the year, working on our service, people development, product diversification and flexibility, as well as offline and online system improvements, and I’m sure that these enhancements will have benefited you in some way. In last month’s article I discussed employee satisfaction and ways that we measure this, so this month I would like to discuss customer satisfaction. At First Response we’ve just won the Car Dealer award for

‘You will gain insight into your strengths and weaknesses’ the fourth time, but we’re not going to rest on our laurels and we’ll have a new dealer survey coming out to you all soon. We use these surveys to shape our next 12 months and we do them annually so that our dealer partners can tell us – openly and honestly – what they think of us and what they want us to improve upon. There is no better way to shape your developments than by getting real feedback from the people who use your product or services and acting on it. As Bill Gates says: ‘Your most unhappy customers are your greatest source of learning.’ If Bill Gates says so, I’m sold, and so should you be. So what can we do to gain this knowledge? Well, obviously, I’ve already touched on surveys, which is a go-to for me as I’ve gained some really good insight through them

Ben

Garside TIME IS MONEY

over the years. Surveys have been used for many years to measure customer satisfaction. In fact, I read a book from the ’70s where marketers and analysts were using them to assess their future product developments. But there are many other ways, too. Take review websites and forums. We use ReviewCentre as a benchmark, but there has been a rise in review sites over the past few years, with the likes of Feefo and TrustPilot coming to the top of the pack. Just by reading your reviews you will gain insight into your strengths and weaknesses. Focus groups can work really well, too. We have previously used a group of people to take part in a discussion about our website before it was launched, but you could use focus groups to provide feedback on

Turn over page for more finance stories marketing campaigns, past sales service, MOT/service centres, etc. Social chatter is also useful. By searching for the name of your dealership on Facebook and Twitter, you can pick up on some really meaty information that you may not get elsewhere. Don’t take a rant personally, though. You may be shocked at first or even angered by what you have read. Eventually, though, you will accept that the customer feels that way for a reason and you’ll make an honest effort to improve. So remember that the whole point of the above is to gain constructive feedback and then make positive changes with the feedback. To be the best, you need to keep changing and improving based on facts.

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

CarDealerMag.co.uk | 53


DEALFINDER.

FINANCE. YOUR ESSENTIAL GUIDE TO . . . SUVs RANGE ROVER VELAR

VOLVO XC90 DESIGNED as a safe and stylish SUV, the Volvo XC90 has a wide variety of features that help make it comfortable, practical and economical considering its size. Participating Volvo dealers can offer the XC90 in R-Design trim for £599 per month on a 37-month contract. After a deposit of £9,043, customers pay 37 instalments of £599. By the end of the agreement, this totals £31,206. If the driver decides to hold on to the XC90, they need to pay the optional final sum of £28,338.75, which takes the overall total to £59,544.75, which is £6,989.75 over the standard OTR price. Based on a 10,000-mile-per-annum agreement, the Volvo XC90 R-Design is available on 5.9 per cent APR representative and a 3.04 per cent fixed rate of interest. This offer is available until September 30, so promote it while you still can.

THANKS to its recent release, the Range Rover Velar has one of the most advanced interiors on the market in any sector, with two central touchscreens and a highly adaptable seating format. Customers can get the most advanced Land Rover currently on sale for £588.56 per month on a 36-month agreement. After a deposit of £9,000, the customer then pays £588.56 for the following 36 months on a Velar S fitted with a D240 engine. At the end of the agreement, they will have paid £30,188.16 and if they decide they want to keep the Velar, there is an optional final payment of £31,412. This takes the overall price to £61,600.16 – £7,880.16 above the standard purchase price. Dealers can offer it on a variable mileage allowance, with this example tailored to a 10,000-mile-per-annum format on Land Rover’s Freedom PCP structure, based on 6.90 per cent APR.

Kia extends free insurance offer to all-new Rio Pulse Summer deals include £1,000 perk for Caravan Club members

K

ia Motors UK has announced its offers for those looking to buy a vehicle during the summer. Not only is the South Korean car manufacturer continuing to offer customers of the all-new Picanto, pictured, free insurance for up to one year, it is also extending the offer to the all-new Rio Pulse. Customers have to be aged between 21 and 79 and must register their vehicle by September 30. All-new Picantos from grade 2 and above are available with 4.9 per cent PCP and a £500 deposit contribution. All-new Rio customers can also benefit from 4.9 per cent PCP with a deposit contribution between £500 and £1,500. Customers looking to buy an SUV can benefit Car Dealer Advert Horizontal 1.pdf 1 01/03/2017

C

M

Y

CM

MY

CY

CMY

K

54 | CarDealerMag.co.uk

by DAVE BROWN @CarDealerDave

from offers on Sportage or Sorento models. Those who have owned the previous-generation Sportage can get £500 off a new Sportage or Sorento as part of a loyalty offer. In addition, customers who register either model by September 30 will receive a free three-year Kia Care-3 servicing package. Caravan Club members buying a Sorento privately through the Kia dealer network will benefit from £1,000 towards Kia accessories. All grades have all-wheel drive, hill start assist, trailer stability assist, plus reversing sensors, and can haul between 2,000kg and 2,500kg depending 13:36:04

on the version. Last year saw the launch of the All-New Optima Sportswagon, and for customers who can’t decide between the Optima Saloon or this new model, a free upgrade will be available, making both cars available at the same list price until September 30. Kia was due to showcase the all-new Picanto at two London-based festivals in July – Lovebox and Wireless. It has partnered with global entertainment company Live Nation to promote it to festival-goers, as well as working alongside other companies through a variety of competitions, social media channels and DJ sets. Attendees were being encouraged to use a festival-themed lens to take a modified image of themselves and send to friends via Snapchat.


Car Dealer Advert Column.pdf 3 04/01/2017 10:42:23

IN ASSOCIATION WITH

JAGUAR F-PACE AS THE brand’s first SUV, the F-Pace was the first step into the sector and was seen as a major step forward for the British brand, especially with Jaguar’s trademark premium finish. Jaguar retailers can offer the model in R-Sport trim with the 25d AWD engine and drive layout for £535.55 per month on a 36-month agreement. Following the customer deposit of £9,000, drivers pay 36 monthly instalments of £535.55, which totals £28,279.80 at the end of the agreement. To hold on to the vehicle, customers need to make an optional final payment of £22,346, which takes the overall cost of the contract to £50,625.80. This is £6,010.80 above the standard road price. For Jaguar dealers, this offer is on Jaguar’s Privilege PCP system and is on a 10,000-mile-per-annum agreement at 6.90 per cent APR.

C

M

Y

STARTLINE

ALPHERA

‘Flexible prime’ finance available for customers narrowly missing criteria

Supercar dealer expands after cash injection

STARTLINE Motor Finance is letting customers enjoy the benefit of ‘flexible prime’ motor finance. New product Finishline is being targeted at used car buyers who narrowly fail to meet the company’s current lending criteria but are still considered to be good-quality applicants. Chief executive Paul Burgess said: ‘With Startline we have more flexible lending criteria than prime lenders but we are able to offer similar products and customer pricing. ‘We believe that with a shifting social and economic landscape signifying changes in home ownership and employment patterns, this makes absolute sense. ‘We believe our Finishline product is priced more fairly than certain sub-prime lenders where these customers may otherwise be placed. What we do is try to look at the applicant as an individual. ‘We have some hard lending rules, but in areas where other lenders take a blackand-white approach we will take a look at the applicant in more detail. Finishline is a continuation of this approach.’

CM

MY

CY

CMY

K

INDEPENDENT finance provider Alphera Financial Services has helped supercar specialist Vanrooyen Elite Prestige Supercars expand its operations with a new Chester site now capable of housing 150 cars. It was made possible after a cash injection from the Farnborough-based Alphera and other partners. Vanrooyen has experienced phenomenal growth since it was founded in 2012. Currently enjoying a turnover of £14m, the company is now expected to increase turnover to £25m and hire an additional 11 staff in the next 12 months to add to the 13 that it already has. Vanrooyen managing director Martin Rylands said: ‘We are delighted to be able to open our new showroom and are very grateful for the support we have received from our partners.’

CarDealerMag.co.uk | 55


Ask Auto Trader

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

A decade of digital excellence At the end of June we hosted our 10th annual Auto Trader Click Awards at the iconic Banking Hall in the City of London. We launched the Awards back in 2007 because we thought it was important to honour and raise awareness of the incredible work British Car Retailers achieve in the digital arena. And for a decade now we’ve been doing just that, celebrating the very best of the automotive retail sector - those retailers that are truly leading from the front and inspiring their peers. 2017 was absolutely no exception. And with the help of BBC Breakfast’s Steph McGovern, we presented 13 awards during the afternoon, with the winners representing the very best of the independent, franchise and supermarket sectors. And as the Independent Brand Director I was thrilled to see independent retailers represented across every award category this year. You can see the full list of winners at www.autotraderclickawards.co.uk, but for those of you that might not have seen it yet, this year’s independent winners include: David Spears Commercial Vehicles (Business Transformation of the Year), AZ Autos (Digital Innovator of the Year), Simon James Cars Limited (Data Driven Retailer of the Year), The Premium Car Collection (Best Performing Retailer on Auto Trader), Independent Cars (Best Digital Customer Experience) and Crompton Way Motors (Digital Retailer of the Year).

accuse us of not being thorough! It’s because of this we can say with confidence that everyone that joined us on the day, whether one of this year’s winners, one of the highly commended, or simply one of the qualifying businesses, really were the cream of the automotive retail industry.

What made these retailers winners? In April we launched a white paper which looked at what connected our industry’s most successful retailers to better understand what they’re doing that their less successful counterparts aren’t. Above all, the research highlighted a difference in mind-set between the ‘traditional’ car dealer and the more ‘pioneering’ retailers.

There are tactics and best practice that all of our industry’s best retailers apply

How did you determine the winners? To create a shortlist, and ultimately determine our winners, we used a combination of metrics to assess 2017’s six award categories, including our two self-nomination categories, for which we received a record number of entries this year. Firstly, we used a prestigious independent judging panel made up of digital experts from Vodafone, Google, LinkedIn, ZPG and Havas Media. And if that wasn’t enough we also analysed over 160 million data points, as well as recruited 10,000 consumers to review over 145 retailer websites. No one can

The winners of this year’s Click Awards are a perfect embodiment of those findings. There were so many different routes to success and very different business models and strategies in our winners. However, the one thing that connected them was their mind-set: a commitment to grow and adapt with the evolving marketplace, and moreover, a determination to continually improve. It was hugely impressive (and humbling) to see these industry leaders question their assumptions, challenge their performance and take responsibility for taking the next leap.

What are these retailers doing? Beyond their mind-set, there were other unifying themes that connect this year’s winners. Whilst their approaches might vary slightly, there are tactics and best practice that all of our industry’s best retailers apply – something that was highlighted in our white paper. In 2017 it should go without saying, but first and foremost they’re embracing digital and placing greater emphasis on their digital forecourts. They’re using all of the tools available to them to create engaging and transparent advertisements to help them stand out from the competition, and of course, to build all important trust with potential customers. They’re also using data more effectively to determine what’s popular in their area and what it costs - pricing to the live retail market from day one and repricing more often to ensure their stock always reflects what car buyers might see elsewhere. This is helping them to sell more cars, more quickly and generating more profit in the process.

What should we learn from these retailers? These retailers should be the inspiration for our industry. Those who fight for their share and raise the industry bar by testing new thinking, new approaches and new ways of connecting with consumers. They’ve seen that the market is evolving, whether they want it to or not, and rather than shying away from these changes, they’re embracing them. As the market continues to become more challenging, it is these retailers that will not only endure, but thrive.

For the latest news, views and insight for the automotive retail community, follow @ATInsight on Twitter and LinkedIn

56 | CarDealerMag.co.uk


BIG MIKE.

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

It’s been interesting to discover which cars last the longest I

read a report recently about the average age of British cars, and I found it quite eye-opening. Apparently, the average car on the roads of the UK is 9.1 years old. So if you’re running around in an ‘08’-plate Ford Fiesta or Vauxhall Corsa, then you’re about as average as motorists come. And probably quite a dull so-and-so, too, especially if you have the Corsa. I say that as someone whose current runabout is a diesel Jaguar X-TYPE, which is hardly the first word in excitement, but at the same time it’s a part-ex car I’m running until the MOT expires, as it looks to me like it won’t pass another. The rust on the sills is quite shocking for an ‘04’-plate car, which in my eyes is still quite new. Indeed, when I started writing these columns, it was only just out of warranty. But the Jaguar is at the age where, according to the report, most British cars go to meet their makers. The average car will last 13.4 years before it is thrown into the baler, so the Jaguar is probably going to be bang-on that. In many ways, it seems a hell of a waste, not least because, in 2004, it was a £25,000 car. I’m not sure about you, but I still think of 2004 as ‘a couple of years back’, and it isn’t helped by the fact that cars, our bread and butter, haven’t changed all that much during that period. Yes, they’re bigger and they’re packed full of even more gizmos and gadgets, but behind the wheel, the driving experience isn’t all that different from before. It seems like chassis designers got pretty much as far as they could go in the late 1990s, and then kind of stayed there. Indeed, drive any Ford from that era – assuming you can find one that is still attached to most of itself – and you’ll find it hard to get a car with better handling. A Focus, Ka or Mondeo from those days is as predictable to drive as it is to fail the MOT on extensive chassis corrosion. I still find it quite surprising to see rust on a ‘modern’ car, but then it’s easy to lose sight of how old some of these cars are today. Back in the Eighties, when I was peddling old Fiats, Citroens and Austin-Rovers from the used forecourts of main dealer franchises as a used car manager, repairing bits of corrosion was commonplace on cars that were less than five years old, while anything that made the age of 10 was doing well, even with a few bits of welding here and there. Our expectations were lower, and so were our standards.

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

You’re not likely to find chicken wire and rolled-up newspaper filling the sill cavities of anything built after the Nineties these days, and there’s a reason why the picture on a tin of Isopon P38 body filler still features an Austin Maestro, 30 years on… Cars, then, are better than they ever were, but this newfound longevity has only come to light recently. According to the same report, the youngest ‘end-of-life’ average for a car in recent memory was just eight years ago, in 2009, but that’s when we were in the middle of the government-backed scrappage scheme that gave anyone with a half-reasonable credit history the opportunity to get rid of their old Rover 400 and swap it for a five-year PCP on a Hyundai i10. I won’t tell you where I fall on that particular comparison, but then I also don’t need the reassurance of a five-year warranty when I can go home for the evening in any one of the 37 cars on my forecourt.

‘I still find it quite surprising to see rust on a ‘‘modern’’ car’ As a result, the really good cars of the late Nineties were impossible to identify as many were binned off before their time. The really good ones of the early 2000s, though, stand head and shoulders above the rest. After all, to reach that 13.4-year average, there have to be many cars that die much younger to account for the older models still on our roads. Hats off, then, to Toyota, Land Rover, Citroen and Rover, which statistically last longer than any other marque at over 14 years on average. The first one no doubt down to sheer mechanical quality (like practically everyone, it seems, I find it very easy to like a Toyota), the second down to the fact that they’re supposed to last that long. But the other two were perceived to be a bit crap when they were new, certainly in terms of build quality. The least long-lived? Mazda, Ford and the Korean brands that we all seem to know and love. Interesting reading, especially with those scrappage scheme specials that kept the car trade on life-support during the darker days rapidly approaching their own 10-year anniversary…

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 | 57


FORECOURT.

THE KNOWLEDGE Model: Ford Fiesta 1.0 EcoBoost 140 ST-Line X Price (as tested): £18,945 Engine: 1.0-litre turbocharged petrol Power (bhp): 138 Torque (Nm): 180 Max speed (mph): 125 0-60mph: 9.0 secs MPG (combined): 62.8 Emissions (g/km): 102 TARGET BUYERS: Young professionals, new drivers, small families. THE RIVALS: VW Polo, Nissan Micra, Vauxhall Corsa. KEY SELLING POINTS: 1. Still fun to drive, but with added refinement. 2. B&O stereo possibly the best in this segment. 3. Premium product without (most of) the added price. DEAL CLINCHER: The most fun supermini to drive now has even better tech and refinement.

Ford Fiesta Seamus McDermott, Ford of Europe lead engineer for Fiesta, talks to Jon Reay about the latest incarnation of the car What are you most proud of on the new Fiesta? I’ve been on the development programme for four years, and we were given the job to make a successor for the Fiesta, which is really tough because people love the current car! So there were a few things to focus on. Firstly, making it fun to drive, because people really love driving the car, and we did spend a lot of time on the road making sure that it didn’t lose that dynamic feel. Secondly, how it looks. It still looks like a Fiesta, but I think we’ve brought a more modern, futuristic look to it. And finally with the interior, the feedback which we had from the customers of the old car was that it was pretty dated, so with the new car – and particularly things like the eight-inch touchscreen and new sound system – it’s a lot more high tech. How much of the focus was on making things more upmarket? There was a lot of focus on that. A lot of the B-segment has gone over to a more premium sub-segment – there’s been a 12 per cent increase in the number of premium B-cars sold last year alone. This year it’s likely to be 15 to 16 per cent, so we’re following that. We’re really looking at customers who are driving Golfs, Focuses and C-segment cars – and they want all the safety tech and the comforts to come with them. There’s a lot of changes you don’t even notice at first too – things like much narrower panel gaps, hidden washer nozzles on the bonnet, hidden screws on the rear brake light… it’s the small things that give it a subconscious premium look too. And on the interior, we spent

a lot of time working on things like gloss levels – making sure there are no materials that are too shiny, which gives a bad perception of quality, and that the darker-coloured materials all match. So that was all part of our effort to bring it more upmarket, along with all the technology we’ve introduced of course. Can you see a time when entry-level trims like Style disappear altogether? I don’t think so. When you look at the market, the premium sector is important, but the mainstream is still where the volume is. So I don’t see the bottom end completely going away. I mean, we’ve moved the car upscale – and we’ve got the Ka+ for anyone that wants a cheap and cheerful five-door – but, in the short term anyway, I don’t think we’ll continue to move Fiesta much further away from the core market. Is the Fiesta Active intended to take over from the EcoSport? We don’t think so – and we think the customers are quite different. So the EcoSport will have the option of all-wheel-drive coming out later, and we think that’s more of an SUV, while the Fiesta Active is more of a crossover. We’re giving the customers more options. You’ve introduced a new 118bhp diesel engine on Fiesta – is diesel still a big focus despite market conditions? I wouldn’t say it’s a big focus, but there’s still a big market there. So maybe 20 per cent of the market is going to be diesel across Europe for the Fiesta – obviously that’s going to vary by country, with the UK at around 10 per cent right now, but certain markets such as France are still big for diesel. And with the high-powered diesel, this is the first time we’ve been able to get it into Fiesta. So for the diesel fans out there, we have the option, and ultimately we don’t want to miss out on that part of the market.

Can the replacement for Britain’s best-selling car live up to expectations? Jon Reay What is it? Is this the most important new car of 2017? Quite possibly. The Blue Oval’s second-smallest model has been the annual best-selling car in Britain since 2009, and has consistently appeared in the top 10 since it was launched in 1976. The Fiesta’s position is under threat, though, with the market for more premium-badged competitors such as the Audi A1 and DS 3 growing ever stronger. Ford’s answer is to fight back with arguably the plushest Fiesta yet, complete with oodles of new technology and a top-spec Vignale model that tips the scales at an 58 | CarDealerMag.co.uk

eye-watering £19,345 in its cheapest guise. What’s under the bonnet? There are three engines in various states of tune – turbocharged 1.0-litre petrol and 1.5-litre diesel from the previous Fiesta, and a new 1.1-litre petrol for entry-level cars. For the first time ever in a non-ST model, the Fiesta gets a six-speed gearbox too – a newly designed, super-efficient six-speed transmission in 1.0-litre cars, while the higherpowered 118bhp diesel borrows a different six-

speed gearbox from the previous Fiesta ST. We drove the most powerful 1.0-litre, and although it’s now pulling around a chunkier car than before, 138bhp in a Fiesta is still more than enough power to have some fun. What’s the spec like? There’s no hiding that Ford is pushing the Fiesta into more premium realms, with more tempting options – though many are limited to higher trim levels than you might like. Ford’s SYNC 3 infotainment system is –


Posher interior

Materials are nicer to touch, and the scattered buttons of the last car’s dash have been binned.

New tech

B&O Play stereo, eight-inch touchscreen and plenty of safety kit are enough to take the fight to more premium rivals.

Growth spurt

The Fiesta has expanded outwards by a few centimetres in length and width for added space and stability.

finds out and delivers his verdict thankfully – standard on all but the entry-level Style trim, but you’ll need to pay extra for the larger eight-inch touchscreen rather than the standard 6.5-inch set-up. DAB is standard on all but the Style model too, while navigation is standard on Titanium trim and above, or a £300 option on Zetec and ST-Line. Going even further with the premium addons, Ford has swapped the Sony-branded audio system of the old car for one designed in collaboration with B&O Play – an off-shoot of Bang & Olufsen. Opt for this and you’ll get 10 speakers rather

than the usual six – including a subwoofer hidden in the boot. What’s it like to drive? The Fiesta’s party piece has traditionally been the way it handles, with a playful character and the kind of poise and precision you wouldn’t expect in a £12,000 supermini. Go for the ST-Line trim with its lowered suspension and specially tuned power steering and you’ll find the Fiesta’s character remains very much intact, with a set-up that

broadly favours fun over outright comfort. What do the press think? Autocar said: ‘This is a very good car, but not without its downsides.’ Auto Express said: ‘Ford has delivered a car that’s in strong contention for class honours.’ What do we think? As an overall package, the Fiesta is as impressive as ever – a practical, affordable small car that’s more fun to drive than it really ought to be. CarDealerMag.co.uk | 59


FORECOURT.

Honda Civic Type R Hideki Kakinuma, head of project for Civic Type R, discusses how things were done differently this time The previous generation of Type R came late in the life cycle, but this one is right at the start. What’s the thinking behind that? Normally, we’ve always finished development of the base Civic, but once the management decided to bring in the Type R we then started the Type R development. So, it was always a few years later than the actual introduction of the base car. For the 10th-generation Civic, it was the first time that we decided to have a Type R within the range from the very beginning. That fact had a big influence on the potential and the performance level of the base Civic, because all the considerations and decisions were made in respect of having a

Civic Type R version as a top-end range within the Civic family. For example, the dimensions, proportions and feasibility of certain technical solutions were all considering the Type R, which was also beneficial to enhance and improve the base Civic. For most Type Rs about 5,000 models are sold per year. The last generation had limited numbers, so for this generation are you looking to get back to high volume? We don’t have the objective to get back to the same sales figures we had before, it’s just that we have developed a car that is suitable for

both the race track and daily usage. We’re quite confident that this new Civic Type R will find a lot of fans around the world, and therefore will be quite successful in terms of sales figures. It feels like this generation is more accessible – was that a conscious effort to make it easier to drive on the road? It is true that daily usability has been greatly improved – though this is not the only improvement. The Type R performance has also increased, so in total, the level has been enhanced. As a result, the practicality and daily usage has been improved as well. So from that perspective, we believe that more customers could opt for the Civic Type R.

THE KNOWLEDGE Model: Honda Civic Type R Price (as tested): £32,995 Engine: 2.0-litre VTEC Power (bhp): 316 Torque (Nm): 400 Max speed (mph): 169 0-60mph: 5.5 seconds MPG (combined): 36.7 Emissions (g/km): 176

... and Darren Cassey can’t help getting excited about it What’s new? The ride has been softened off and an extra ‘comfort’ driving mode introduced. It has a host of new tech too such as clever engine cooling. And the fuel tank has been moved so you sit lower in the car than before, which is fantastic news.

on in leaps and bounds, feeling much more grown up and serious about the job of going silly-fast. And whereas the old model felt like it was always straining at the leash, the new one is much more approachable and far less likely to be unsettled by bumps in the road.

What’s under the bonnet? The 2.0-litre turbocharged petrol has been given a workout to bump power up by 10bhp to 316bhp.

What’s the spec like? Most impressive is the Honda Sensing safety system, which comes as standard. Radars, sensors and cameras work together to offer collision avoidance, road departure mitigation and adaptive cruise control to name but a few of its nifty

What’s it like to drive? Under every objective measure, the new Civic Type R has come 60 | CarDealerMag.co.uk

features. Opt for the pricier GT-spec model and you’ll get dual-zone climate control, a wireless charging pad, LED front fog lights and more.

TARGET BUYERS: Young car enthusiasts – particularly those who also need a practical car that won’t cost them the earth. THE RIVALS: Ford Focus RS Volkswagen Golf Clubsport S Volkswagen Golf R KEY SELLING POINTS:

What do the press think? Autocar called it ‘thoroughly well sorted,’ while Top Gear said it was ‘the world’s greatest front-drive car’. What do we think? The new Honda Civic Type R is seriously impressive. The Japanese manufacturer has really moved the game on and built a car more than worthy of celebrating the Type R badge’s 25th anniversary.

1. One of the most capable track-day hot hatches. 2. Offers exciting styling not found elsewhere in the segment. 3. Front-wheel-drive drivetrain makes it more fun than some all-wheel-drive rivals.

DEAL CLINCHER: More capable than ever before, the Type R has grown up.


Nissan Qashqai James Bird, UK product manager for Nissan Qashqai, shares his thoughts on the new model and more What does the new Qashqai mean for the brand? It’s positioning the car in a premium marketplace, taking on both the new rivals and those from the premium segment. It’s a step up, but also just reaffirming our position as a leader in the market. Which specification do you think will sell best in the UK? Probably the N-Connecta, our mid-range model, which includes things like the around-view monitor and navigation as standard. What do you think attracts customers to Qashqai over its rivals? Qashqai is the iconic, original crossover. We have the best brand awareness in terms of our... not necessarily heritage, but we were the first to market. And arguably, it’s the strongest product we’ve had for 10 years. New rivals have come in,

but Qashqai is the benchmark. We’re recognised as the established player, and it is an incredible model. It drives so well, and it’s the benchmark for a reason. What lessons have you learnt from the development of the new Qashqai? All the development has been through the feedback from customers. Over the past 10 years, a lot of the engineering has been on refining and honing those changes that came from customer demand. The exterior design had to be made more premium, while also retaining the iconic design of Qashqai – the robustness that we see in a crossover. The interior quality has also been lifted as a result of customers demanding more. How has your dealer network responded so far? They’ve been highly positive about it. They’re

highly excited about the product. It’s a huge seller for Nissan in the UK. What are the biggest challenges facing Nissan? We have our number one position that we want to defend, and Qashqai – up until this point – was probably the oldest product in the segment. So this refresh is timely and something we want to take to the new competition in the market, and that’s the same for the X-Trail as well. The new Leaf will be coming shortly, and that will set a new standard in terms of our EV product too. Would you be willing to rule out diesel engine manufacturing if it was being demanded? I guess that’s a lot of speculation. There’s no reason to do that on our current trend. We sell mostly diesel, so if that’s what we have in market for a new car that’s what we’ll sell.

THE KNOWLEDGE Model: Nissan Qashqai 1.6 Tekna 163PS Price (as tested): £27,450 Engine: 1.6-litre DIG-T four-cylinder petrol Power (bhp): 161 Torque (Nm): 240 Max speed (mph): 124 0-60mph: 8.7 seconds MPG (combined): 48.7 Emissions (g/km): 134

Simon Davis finds the original crossover has still got what it takes What is it? Nissan has brought in a slightly revised exterior, a greater focus on interior refinement, quality, improved driving performance and a greater emphasis on safety. There’s also a new flagship grade – dubbed Tekna+. What’s under the bonnet? Our test Qashqai was fitted with Nissan’s punchy little 1.6-litre, fourcylinder petrol engine, producing 161bhp and 240Nm of torque. What’s it like to drive? That engine makes the Qashqai

quite a fun little car to throw down the road. The manner in which it picks up speed is impressive, considering the car’s size, and it doesn’t sound too bad either. One area where the Qashqai ticks a lot of boxes is when you settle down to a cruise. It really is a comfortable car. What’s the spec like? In the Tekna specification that our test car was built to, you’ll be treated to a fairly generous level of standard equipment for your money. Some of the toys include DAB radio – which is standard across the range – satellite navigation, a rear

parking camera, heated seats and a panoramic glass roof. There’s also a suite of safety equipment. What do the press say? What Car? said: ‘It makes a terrific family car.’ What do we think? The new Qashqai is entertaining to drive. Its interior may lack some character but the average family buyer isn’t going to be hugely concerned about this. As a proposition for a primary family vehicle, the Qashqai makes a very compelling case for itself indeed.

TARGET BUYERS: The Qashqai is targeted at families who primarily live in urban areas and want a vehicle that combines the practicality of a larger SUV with the easy drive of a smaller hatchback. THE RIVALS: Peugeot 3008 Renault Captur Hyundai Santa Fe KEY SELLING POINTS: 1. Reputation as the ‘original crossover’. 2. Strong levels of safety equipment. 3. Comfortable, practical interior.

DEAL CLINCHER: It’s still the original crossover. CarDealerMag.co.uk | 61


FEATURE.

The compact SUV isn’t a new concept but we’ve seen a flurry of models released over the past month. These carmakers might be late to the party but they’re certainly not pulling any punches. Rebecca Chaplin reports

W

e’re a nation that is passionate about its SUVs, despite the terrifying incline up the kerb and on to our driveways being the closest most of us will ever come to off-roading. We’re also extremely aspirational, and we want to up our status symbolically with a taller vehicle. Now, for most car buyers, a fully-fledged Land Rover, G-Wagon or even Jeep Wrangler isn’t really a realistic everyday vehicle, much as it would catch the eyes of onlookers. However, there is the option of a careful blend between hatchback practicality and some added ride height. Enter the B-segment SUVs. Our desire for these small and mighty 4x4s hasn’t gone unnoticed, and car manufacturers 62 | CarDealerMag.co.uk

have been gradually adding to this newest of segments. It’s so new, it’s a portion of the market that the Society of Motor Manufacturers and Traders has yet to define, but its research for Car Dealer shows that the small SUV sector grew by 32.7 per cent from 2015 to 2016. Over the past five years, the number of these cars has increased by 223 per cent, from around 133,000 to 430,000. Four manufacturers have now revealed new models to sit in this growing segment. Hyundai, Kia, Seat and Jaguar have already seen their sales figures grow and brand awareness increase thanks to the fun and friendly SUVs they’ve brought to market, but their line-ups have been missing compact SUVs in their ranges. UK Jaguar Land Rover MD Jeremy Hicks was

the most recent to get involved, unveiling his brand’s new E-Pace, a little brother to the F-Pace. He told Car Dealer Magazine that this wasn’t about gaining a share in this sector – its sales have driven the growth there. ‘There is no doubt a huge potential for the Jaguar brand with E-Pace,’ said Hicks. ‘We grew by nearly 50 per cent last year and we’ve grown by another 25 per cent already this year. ‘That says to me we’ve got significant upward potential in the brand. It’s about making sure that we capitalise on that potential. ‘Eighty per cent of our sales have been conquest, and we’ve demonstrated with F-Pace that we can deliver that. What we’ve seen is that as we’ve introduced cars, and F-Pace is a great


B-SEGMENT SUVs

TALL BUT SMALL

example in the medium-SUV sector, is our sales but they are actually the catchy monikers the have been the growth in that sector. What we’ve other new compact SUVs have gone for – the shown is we can grow that sector and it hasn’t E-Pace is not alone in its quirky nature. degraded really in terms of our performance Hyundai has big plans for its Kona, with the on Land Rover at all.’ brand already revealing that an all-electric The E-Pace might be the little brother version will arrive next year and that to the F-Pace but you would never it’s the preferred model to be given the confuse them in a car park. While the ‘N’ brand treatment next. medium SUV has stayed conservative, The Kia Stonic looks set to take the with looks taken from Jaguar’s large world by storm if it shares the success executive cars, the compact SUV has the brand had with Sportage, but in a been gifted the quirks of the F-Type smaller package. With a combination Jeremy Hicks sports car plus as much technology as of affordability and Kia’s seven-year the brand could fit on board. warranty, it’s more than likely to win Kona, Stonic and Arona might sound like both hearts and minds. names fit for the latest girl bands in the charts Then there’s the Seat Arona, little brother

to the Ateca and a pumped-up version of the extremely popular Ibiza, so again, it looks like a match made in heaven for the Spanish company. If we take a look at the history of this segment it wasn’t really a new concept, as small SUVs had been on the market for years, but they really sprang into popularity with the launch of the Nissan Juke. Before this, the purpose of this area of the market was more about utility, while the Japanese carmaker saw a gap in the market for a hatchback-sized car with increased ride height and just the right mix of quirky style – with that, Juke was born. Nissan sells 40,000 Jukes a year – an impressive tally. However, the new-tomarket Seat Ateca might be bigger, but CarDealerMag.co.uk | 63


FEATURE.

JAGUAR E-PACE

A car that’s been taken to the next level tech-wise THE E-PACE is the next model in Jaguar’s SUV line-up. It sits in the range under the larger and already hugely successful F-Pace, but with its smaller stature it’s expected to surpass its stablemate. It may be an SUV like the F-Pace but it’s heavily influenced by the F-Type. Sleek lights, etched lines in the bodywork and the rear flick across the boot are all taken from the sports car and make it stand out clearly next to the existing SUV. The Jaguar design and engineering team have taken this car to the next level techwise. As standard, the E-Pace gets a 10-inch colour screen with Jaguar Land Rover’s own TouchPro infotainment system. It’s also the first Jaguar to feature a next-generation head-up display and gets the option of a 12.3-inch instrument panel. With practicality for modern life in mind, there are four USB ports, a 4G wi-fi hotspot for up to eight devices and storage specifically designed to hold phones or music players. Buyers will also be able to opt for a wearable Active Key – a waterproof and shockproof wristband that allows owners to lock the main key inside the car when doing activities such as running or swimming. To get back in the car, all owners need to do is hold the wristband to the top corner of the number plate surround. Under the bonnet there will be a choice of three petrol and two diesel engines. The most powerful is the 296bhp petrol turbo engine, capable of 0-60mph in 5.9 seconds and with a limited top speed of 151mph. For those looking for a more economical option, the lower-powered 148bhp Ingenium diesel engine emits just 124g/km of CO2. This will reach 60mph in 9.5 seconds and has a top speed of 124mph. Prices start from £28,500. A First Edition model will be exclusively available for the first year, priced at £47,500.

64 | CarDealerMag.co.uk

Seat CEO Luca de Meo with the new Arona

Inside the Seat Arona...

... the Kia Stonic...

24,200 left dealerships in its first year on the Seat before 2020 – three of which are brand new. market, so you’ll understand why the carmaker These taller vehicles are usually considered is optimistic about a smaller car with the same attractive to older customers, but things aren’t as stylish looks that we’ve already fallen for. simple as that, according to Harrison. Richard Harrison, Seat’s UK managing director, The element of a fun and dynamic drive is told Car Dealer: ‘With Ateca and Arona, it brings something echoed across all of these compact us into segments we’ve never been in. The people models, and that’s why they’re drawing in who buy those buy them for slightly different younger buyers to the individual brands. reasons than they do hatchbacks. Harrison explained: ‘Now we have SUVs, ‘In the case of Ateca, we were one and SUVs you might say appeal to an of the last to the party but being last older person. Probably right, as the isn’t necessarily a bad thing, and average age of an SUV buyer is slightly the design team in Barcelona nailed older. However, the Ateca is about it. The quality of the product, the dynamic drive. driveability and the design are spot-on.’ ‘Ateca is bringing a huge number It was only last year that Seat unveiled of people into the brand who would its first SUV, part of a new model Richard Harrison have never considered us before. We’re offensive that the Spanish carmaker conquesting from a broad part of the hopes can transform its global sales. That was market. Predominantly SUVs, but there’s not one the Ateca, and when it comes to crossovers, car we’re conquesting from, we’re taking them it's arguable that few have been as popular from premium and volume.’ as this. It’s swept up almost every available Looking elsewhere in the market, our four award since it was launched and the sales newbies will face tough competition from have reflected its popularity. existing models – Renault’s Captur, Audi’s Q2 and We’ve now seen Arona unveiled, making the Suzuki Vitara to name just three. up the second of the six cars to be revealed by It’s a packed segment and those models alone


KIA STONIC

‘Very excited about this model joining line-up’

... the Hyundai Kona...

and the Jaguar E-Pace

demonstrate the range of diversity the new ‘This year we’re on track to sell 92-93,000,’ said arrivals will have to compete against. Paul Philpott. ‘Stonic gives us the potential to get Hicks asserts that although volume isn’t to 100,000. However, there’s a bit of uncertainty Jaguar’s concern, the time is right for it in the with where the car market will be, where the SUV market. ‘People have had three or four economy will be, and even where the political of those [German] brands and they’re looking infrastructure will be. for a change. This is absolutely Jaguar’s ‘I think we’ll probably end up with a plan for moment, because we’re in a burgeoning 97-98,000 sales next year, with the potential to get sector of the market,’ he said. to 100,000. If not 2018, we’ll do it in 2019, a Kia has already seen huge success year ahead of the scheduled plan of 2020.’ with the Sportage. The 4x4 has helped The Stonic SUV is pitched against the transform the brand’s UK car sales. segment-leading Nissan Juke. The manufacturer has just recorded It is unlikely to undercut it on price, its best-ever H2 sales performance – though, with the Stonic expected to passing the 50,000 mark for the first start from around £15,000, and time despite tough market conditions Philpott says it won’t topple the during the last three months. It’s got market leader sales-wise, either. Paul Philpott big aspirations to continue to grow, and ‘We won’t sell more than the Juke,’ he Stonic will play a big part in this. confirmed. ‘Next year in its first full year on sale, Its target is a full-year sales figure of 92,000 we expect to sell between 8-10,000 Stonics. Kia is with a long-term goal of reaching 100,000 sales a known for great SUVs like Sportage, Sorento and year before the end of the decade. Soul, and Stonic will build on that in one of the This is an ambition that the president and biggest segments of the market. CEO of Kia UK has long held, but with a hung ‘However, we are not planning on parliament and Brexit causing uncertainty among selling more than the Juke. Stonic is not buyers, the target may not be achieved until 2019. built in the UK, it’s built in Korea, and I

TAKING distinctive styling cues from the current Rio, Kia’s Stonic features Kia’s recognisable ‘tiger nose’ front-end design. It will be accompanied by up to 20 two-tone colour combinations when it goes on sale during the third quarter of 2017, with five shades to choose from for the roof alone. Michael Cole, chief operating officer of Kia Motors Europe, said: ‘The Kia Stonic will be one of the most compelling new cars in this rapidly expanding class, backed by Kia’s unique warranty and the brand’s reputation for reliability, quality and contemporary design. As the segment expands, the Stonic looks set to become one of our best-selling cars.’ The Stonic is to be powered by a series of compact turbocharged petrol and diesel engines, ranging from a 1.0-litre turbocharged petrol to a 1.6-litre diesel and driven through a manual transmission. All cars come fitted with electronic stability control and vehicle stability management as standard, too, while specific models receive torque vectoring and cornering brake control systems. Inside, the Stonic is packed with a wide variety of technologies. A touchscreen infotainment system houses smartphone integration systems Apple CarPlay and Android Auto. Paul Philpott, Kia’s UK president and CEO, said: ‘Stonic will be well placed to build on our success in the SUV sector, which has been built with Soul, Sportage and Sorento. The B-segment SUV market is growing and this model will help us establish the Kia brand even further. ‘We expect to sell around 8-10,000 units in its first full year. It won’t topple the Nissan Juke as segment leader but it will take Kia ever closer to our target of 100,000 UK car sales a year. We’re very excited about it joining the line-up.’

CarDealerMag.co.uk | 65


FEATURE.

SEAT ARONA

‘Perfect answer to demands of our customers’ SEAT’S Arona joins the Ateca in Seat’s fledgling SUV fleet and a third option is currently in development. President and CEO of the Spanish brand Luca de Meo says that already ‘with the five-door and the crossover, we are covering probably 80 per cent of demand in the B and C segments’. Matthias Rabe, Seat’s executive vicepresident for research and development, added: ‘The new Seat Arona is the perfect answer to the current demands of our customers. We are once again setting new standards in the segment.’ Designed as an SUV for the city, the Arona is 69mm longer than the new Ibiza hatchback and 99mm taller. A steeper windscreen allows for more cabin space plus the Arona gets a 400-litre boot. Engine-wise, the Arona comes with two petrol options with three power outputs – a 1.0-litre three-cylinder TSI with 93bhp and 113bhp, as well as a four-cylinder 147bhp TSI – and two TDI diesel units producing 93bhp and 113bhp. The compact crossover will also be available with the full range of Seat’s driving assistance features including front assist, adaptive cruise control, tiredness recognition system and multi-collision braking. Optional systems include rear traffic alert, blind spot detection and a park assistance system that helps with parallel and angled parking. Arona will be available in four trim levels – Reference, Style, FR and Xcellence – and will be fitted with an eight-inch touchscreen display, a connectivity hub with wireless charging and signal amplifier, Apple CarPlay, Android Auto and MirrorLink. Other features include dual-zone climate control, ambient LED lights and, on FR models, dual-mode suspension and Seat Drive Profile with four driving modes: Normal, Sport, Eco and Individual.

66 | CarDealerMag.co.uk

Kia bosses are very excited about Stonic joining the line-up

Jaguar is making the most of a burgeoning sector of the market, says Jeremy Hicks want to be conservative with estimates. When we Inside, the Kona benefits from a large introduced Sportage, we expected 23-25,000 sales infotainment screen, which has been designed to a year and now sell 40,000 a year. ‘float’ above the dashboard, giving a better sense ‘I would rather have an order bank for Stonic of interior space. This system will be available than end up distress-selling.’ with a five-, seven- or eight-inch display, and If you’re looking at the Stonic, then at will incorporate smartphone connectivity the Kona and then back at the Stonic options such as Apple CarPlay and thinking we must have messed up the Android Auto. The underfloor layout photos as they look awfully similar, of the car has also been extensively well, that’s because they are. The sister worked upon, so that, despite being companies built the two cars on the four-wheel-drive, there’s plenty of same platform, so when it comes to room for all passengers. dimensions, practicality and emissions In an unusual move for the Korean Chung Eui-sun alliance, Hyundai unveiled its version of they are very closely related. Chung Eui-sun, vice-chairman of the B-segment SUV first, but already it’s Hyundai Motor Company, said: ‘With the Kona, admitted it will be taking the concept further. we have created a stylish and highly functional Chung added: ‘Our plan is to come up with compact SUV, perfectly suited to the needs of an A-segment SUV – smaller than the Kona – by customers who pursue challenging, action2020 and so we want to embrace A-segment to filled lifestyles. We aim to set new standards E-segment. We’re also planning to roll out an for the compact SUV segment, with appealing E-segment SUV that’s bigger than the Santa Fe. design, cutting-edge connectivity and classWe want our line-up to reflect customers’ needs.’ leading safety features.’ Hyundai has struggled over the years to portray


The explosion of the crossover, as the consumer’s appetite for lifestyle vehicles grows, could see demand wane for the estate car Philip Nothard, retail and consumer specialist at Cap HPI

E-Pace is heavily influenced by the F-Type

Hyundai’s Kona will be fun to drive

its brand as more than just i10, i20 and i30. With such versatility in the range, including hydrogenpowered 4x4s, it’s incredible just how easily the public can overlook what else is in the range. Both the Stonic and the Kona are expected to have starting prices of around £15,000 – meaning a tough decision for buyers. However, with the all-electric Kona on the way next year with more than 242 miles of range, it’ll certainly give customers something to think about. The fact that SUVs and crossovers remain worth the investment is a sentiment carried across the car industry – in both used and new. Figures from Cap HPI reveal residual values for all 4x4-equipped (or even just made to look like they are) models remain strong. Philip Nothard, retail and consumer specialist at Cap HPI, said: ‘Strong consumer demand for the SUV and crossover sector continues to grow and these vehicles will continue to be on the shopping lists of buyers. The explosion of the crossover, as consumers’ appetite for a lifestyle vehicle grows, could see demand wane for the

estate car. Dealers need to ensure they understand consumer behaviours and evolve stock dynamics to meet daily market changes. The market dynamics in 2014, in many cases, are very different to today’s – consumers’ aspirations are changing. ‘The coming year will see the focus and investment in the SUV/crossover sector continue. Hybrids and alternative fuels will be an area of growth, as government intervention and zero/ low emission zones could impact.’ What does this mean for the future? Well, as this magazine is going to print, we’re out driving the Velar, Range Rover’s small SUV, and we doubt that will be the end of it. VW chairman Herbert Diess might have said downsizing is dead when it comes to engines, but for the cars themselves? It seems this is only the beginning. There are rumours afoot that baby Macan could be on the way in 2020 and that VW could be working on a Polo-based SUV. As carmakers drift so far from their core products, who knows how far – or how small or tall – these brands can take their next models?

HYUNDAI KONA

It’s stylish, highly functional and looks dynamic HYUNDAI has unveiled its latest compact SUV – the Kona. Joining the Tucson and Santa Fe in the company’s range of SUVs, the Kona is designed to take on the likes of Nissan’s Juke and is slated to arrive in the UK in late October. The exterior has been given a variety of dramatic styling touches, from slim daytime running lights at the front of the car to contrasting black ‘armour’ designed to both protect it and give it a more dynamic look. As reported on the left, the Kona has a large infotainment screen, which has been designed to ‘float’ above the dashboard, giving a better sense of interior space. This system will be available with a five-, sevenor eight-inch display, and will incorporate smartphone connectivity options such as Apple CarPlay and Android Auto. The underfloor layout of the car has also been extensively worked upon, so that, despite being four-wheel-drive, there’s plenty of room for all passengers. The rear seats fold flat to provide better practicality levels, too. Offered with a choice of two turbocharged, small-capacity petrol engines, the Kona should be economical as well as fun to drive. The first is a 1.0-litre unit linked to a six-speed manual transmission, while the second is a larger 1.6-litre turbocharged engine driven through a seven-speed dual-clutch automatic. An optional four-wheel-drive system will be available, while refinement levels should be impressive. Hyundai also revealed that it plans to introduce an all-electric version next year. Vice-chairman of Hyundai Motor Company Chung Eui-sun said: ‘We are targeting a mass production of EV from next year. The Kona EV may be able to go over 390km HYUNDAI (242 miles) using allKONA FIRST electric power.’

DRIVE PAGE 68

CarDealerMag.co.uk | 67


FEATURE.

FIRST DRIVE

Hyundai Kona Look out Nissan Juke and Renault Captur! There’s a new kid on the block, as we have been reporting in our look at B-segment SUVs. Jack Evans put it to the test recently at Hyundai’s R&D facility in Namyang, South Korea What is it?

What’s under the bonnet?

The Kona is Hyundai’s offering into the everflourishing compact SUV market and, although relatively late to the party, is offering funky looks alongside plenty of practicality. Designed to take on the likes of the Renault Captur and Nissan Juke, the Kona comes with a choice of two petrol engines – though these could be complemented by a diesel later on in the car’s life – as well as four-wheel-drive. It’s certainly a refreshing take on the small SUV, and one which will appeal to those who want to stand out from the crowd. There’s little chance that people will say the Kona is boring to look at. With its sharp, angular looks and equally stylised headlights, it’s a good-looking car – although one that is heavily colour-dependent. Whereas brighter colours complement the Kona’s appearance, subdued ones tend to wash it out. It’s also a car that is far better to look at in the metal than in pictures – which is something we’d advise you to do, as the Kona is well worth paying attention to. The Kona marks the beginning of a new styling movement for Hyundai, and sparks the start of a full suite of new cars, including a far more compact SUV as well as a much larger, premium four-wheel-drive. The Kona has been designed to appeal to active families, and because of this has a good degree of practicality on offer. There’s 361 litres of boot space to play with, but despite the load lip being quite flat, it’s actually quite high – which could make loading larger items into the rear of the car a little more difficult. The rear seats can be folded flat, too, extending the load area should you need it. Most families should be well catered for in terms of interior space. There’s a good degree of legroom and headroom for those in the back, while those up front have plenty of shoulder room too. The interior also feels far less oppressive than that found in the Juke, with large windows and light interior colours giving a better impression of spaciousness.

From launch, there will be just two engine choices to pick from. The first is a turbocharged 1.0-litre petrol producing 118bhp and 175Nm of torque while the second is a larger 1.6-litre turbocharged four-cylinder pushing out 175bhp. The former sends its power through a six-speed manual gearbox, while the latter utilises a sixspeed dual-clutch automatic. Hyundai has said that it is currently in the process of creating a 1.6-litre diesel unit for the Kona, but it is as yet not known whether we’ll be getting this engine in the UK.

68 | CarDealerMag.co.uk

What’s the spec like? Hyundai hasn’t released any official prices for the Kona, but to be competitive it’ll likely cost around £18,000. The cabin certainly feels reflective of this price. Despite the Kona’s exciting exterior looks, this isn’t really reflected inside – and we would have preferred an equal amount of flair applied to the cabin as has been done to the outside. That said, everything has a good degree of solidity to it, and all the buttons and controls have plenty of weight to them. There are a few harder plastics used lower down the cabin, but for the most part it’s a good place to be. The main event is a large, eight-inch infotainment screen, and this ‘floats’ in the centre of the cabin.

What’s it like to drive? There are two chassis configurations available with the Kona. Lower-powered models get a standard torsion-beam rear suspension set-up, while higher-output models – such as the 1.6-litre model we’re testing here – receive a higher-specification multi-link system instead. Our test car was still set to Korean specification while testing it at Hyundai’s research facility in Namyang, which meant that its suspension set-up

THE KNOWLEDGE Model: Hyundai Kona Price: N/A Engine: 1.6-litre turbocharged petrol Power: 175bhp, 255Nm Max speed: 127mph 0-60mph: 7.7s MPG (combined): N/A Emissions (g/km): N/A TARGET BUYERS: Those who want a car with good looks and charm but good practicality levels too. THE RIVALS: Nissan Juke, Renault Captur, Peugeot 2008. KEY SELLING POINTS: 1. Good build quality. 2. Likely to be cheaper than rivals. 3. Solid handling. DEAL CLINCHER: The Kona is a car to take seriously – and one well worth considering if you’re after a compact SUV.

was softer than that destined to be found on European-grade cars. Despite being potentially softer than the cars we’ll see in the UK, it still felt


It’s a refreshing take on the compact SUV segment and one we’d recommend viewing in the metal. Rivals

The Kona is set to rival the likes of the Nissan Juke and Vauxhall Mokka X.

Set-up Looks

Black plastic cladding gives the Kona a rugged appearance.

quite firm and would certainly struggle to cope with the unique nature of British roads. Elsewhere, however, things are positive. The steering has a good degree of weight to it – though lacks any real feel – and there’s very little body roll through faster corners. The six-speed dual-clutch automatic fitted to our test car shifted smoothly and worked well with the surprisingly punchy engine. At motorway speeds there’s quite a lot of noticeable road noise, as well as a fair amount of wind noise generated from the large wing mirrors. In contrast, the engine settles down nicely and there’s not too much engine noise to frighten the horses.

What do the press think? Auto Express said: ‘Hyundai has taken its time to get a small SUV to market but it looks like it has thought things through to good effect.’ CAR Magazine said: ‘Hyundai freely admits that it’s late to the B-SUV sector. But with tardiness comes the opportunity to learn from the mistakes of others – and this car feels just like that.’ i News added: ‘Initial impressions are of a smooth, quiet-riding model, with a settled feel that soaks up bumps well.’

What do we think? The Hyundai Kona is ideal for those looking for a well-rounded and good-looking small SUV.

Four-wheel-drive cars get a more sophisticated rear suspension set-up.

Though just two engines are available from launch, this really shouldn’t put potential buyers off, as the Kona feels almost perfect for smaller families who are more style-conscious. Yes, the ride may be a touch firm, but the benefit of this is a car that deals well with corners – something you don’t tend to find in this segment. Hyundai may have been late to the B-segment but it’s likely to make a huge impact with the Kona. As hinted at earlier, we had a relatively brief stint behind the wheel, but first impressions show it to be a well-rounded attempt by Hyundai and one that we can see selling in droves. It’s a refreshing take on the compact SUV segment and one we’d recommend viewing in the metal. [CD] CarDealerMag.co.uk | 69


FOCUS ON.

Warranty providers

A boost for your bottom line, peace of mind for your buyer Offering warranties to your customers is a great way to make more profit and add value, too by DAVE BROWN @CarDealerDave

W

ith margins on car sales under everincreasing pressure, it’s never been more important for dealers to make the most of all aftersales opportunities to boost that all-important bottom line while adding extra value for their customers. One such avenue that’s open to dealers of all shapes and sizes is to consider offering warranties as part of the package when a car is sold. As we all know, there is a world of choice out there when it comes to warranty providers and a variety of trusted names you can turn to if you’re looking to find a partner in this area. As ever at Car Dealer, we have been finding out about some of the leading players in this field and a trio of top warranty providers are included in this feature. First of all, we have a contribution from AutoProtect, on the opposite page. In their opinion, it’s time for dealers to take a fresh look

at extended warranties; the products they offer and the way they are promoted. AutoProtect has established a new level of product flexibility with its insurers, as evidenced by the creation of its Gold Plus warranty developed with dealers to provide a higherquality product. The company points out that the limited warranty has the potential to be a misguided saving, delivering short-term gain but long-term pain. Next we have the The RAC, which has introduced a new level of dealer warranty cover to meet used car buyer demand for even higher levels of protection. Called Platinum Plus, it sits above the Platinum, Gold and Silver warranty products in the RAC dealer warranty range.

Sean Kent, sales director at the RAC Dealer Network, tells us: ‘There is undoubtedly increasing demand in the used car sector for enhanced levels of warranty cover and this is why we have introduced Platinum Plus. ‘It is one of the most complete dealer warranty products on the market.’ Last but by no means least in this look at warranty providers, we feature the work of The WMS Group, which is shaking up the warranty industry and generating record sales for dealers with a series of ground-breaking developments across its flagship used car scheme. The WMS Group has a great reputation for delivering outstanding products and services to its 3,500+ strong dealer network.

FEATURED SUPPLIERS

AutoProtect

The RAC

The WMS Group

An established service can be re-invented. What gains can you make from warranties?

Meeting increasing demand in the used car sector for enhanced levels of warranty cover.

P71

P72

Safe and Sound is the UK’s original and most comprehensive aftermarket scheme.

70 | CarDealerMag.co.uk

P74


ADVERTISEMENT

Winning Warranties Time to Create a New Impetus The impact of AutoProtect’s call to quality and a commitment to continuous improvement has served the business well. Growth every year for the last seven now sees over 3,000 dealers promoting the business warranties across the UK. In closing, Wake sets all dealers a challenge: “We should all be on the lookout for that innovation that can help our business’: what we should not overlook are the improvements and opportunities available from established services. As Uber has shown, an established service can be re-invented. So, what gains can your business make from warranties?”

Mike Macaulay, Adam Head and Zac Mitcheson accepting the Q Award.

New i-Claim There can be no question that the claims experience is the key test of any warranty.

This is the view of AutoProtect whose distinctive approach saw it recognised as the Warranty Provider of the Year at the inaugural Motor Trader Quality Awards. “As dealers look to find an edge that helps sales, retention and lifetime value, warranties are an often utilised tool that dealers should be looking at once again. Changes in the way customers find their car, the developing regulatory backdrop and a new generation of warranty services, simply add to the potential possible,” notes AutoProtect Director Nick Wake. AutoProtect points to two key areas where it feels dealers can benefit:

Using a high quality extended warranty as a differentiator A transparent, high-quality warranty speaks volumes for the dealer and can help to build a higher level of trust, improve reputation and generate customer referrals from satisfied claim customers.

car buyers make “ Increasingly, an informed buying decision about all aspects of the package; the car, the dealer, finance and warranty.

Dealers should review the scope of their warranty and the way in which it is promoted. AutoProtect has established a new level of product flexibility with its insurers, as evidenced by the creation of its Gold Plus warranty, developed with dealers to provide a higher quality product. While this product may not be suitable to everyone, the flexible and innovative principle that can help ALL dealers is very much available.

AutoProtect’s new online claims process i-Claim has streamlined and accelerated the whole process from decision to payout. TEXT SIMPLE to 88802 for more information.

5 Warranty Action Points

MOTORTRADER

1.

AWARDS

Review the cover provided by your extended warranties.

®

2016

Now is the time for dealers to take a fresh look at extended warranties; the products they offer and the way they are promoted.

WINNER

2.

Nor is it just the warranty product and process in the showroom that dealers should be reviewing.

Use warranty claims as a promotional tool, especially through social media. Promote your good reviews.

3.

Including a long-term warranty in the sales price

Establish just how much revenue is generated in aftersales from warranty work.

4.

Test your team – how much do they know about your warranties – not all are the same, so it may be time for some training.

5.

Promote warranties as a service and/or differentiator online with videos, comparison information and specific benefits.

All too often, dealers have offered minimal warranties. A three or six month warranty and/or a warranty with limited coverage may mean lower costs to the dealer, but it can risk long-term reputation damage.

Today’s buyers are looking at a dealer’s reputation, not just their stock. The limited On the other hand, a poor quality warranty warranty has the potential to be a misguided can simply undermine these attributes. saving, delivering short-term gain but long-term pain. Reputational damage is Not all warranties are the same and just saying tough to overcome, especially in today’s a car has a warranty is simply not enough. instant review world.

W

www.autoprotect.co.uk/winner

linkedin.com/company/autoprotect twitter.com/autoprotect CarDealerMag.co.uk | 71


FOCUS ON.

Warranty providers

‘One of the most complete dealer warranty products on the market’ RAC

E: dealernetwork@rac.co.uk W: rac.co.uk/getapproved

T

he RAC has introduced a new level of dealer warranty cover designed to meet used car buyer demand for ever higher levels of protection. Called Platinum Plus, it sits above the Platinum, Gold and Silver warranty products in the RAC dealer warranty range. Available on vehicles up to six years old with fewer than 60,000 miles on the clock, it extends cover to include claims from £500 to the vehicle’s value, failures caused by carbon build-up, wear and tear, and diagnostic work up to one hour. Sean Kent, sales director at the RAC Dealer Network, said: ‘There is undoubtedly increasing demand in the used car sector for enhanced levels of warranty cover and this is why we have introduced Platinum Plus. It is one of the most complete dealer warranty products on the market. ‘Platinum Plus allows dealers to offer a very high level of protection and reassurance to customers, mainly in the three- to six-year-old car sector, including them either as part of a very comprehensive overall used car proposition within the windscreen price, or as part of a structured warranty upgrade path. ‘Certainly, we believe that a product with this level of cover, combined with the high level of customer recognition and trust in the RAC brand, is very attractive indeed.’ There are now almost 1,200 members of the RAC Dealer Network in the UK, providing RACbranded warranties. • Do you want to find out more about the RAC Dealer Network? For further details call 0330 100 3807, e-mail dealernetwork@rac.co.uk or visit rac.co.uk/getapproved

‘Right dealers’ sought to further expand our network DEALERS who place the customer at the heart of their businesses are being sought to help power further growth of the RAC Dealer Network. Last year, the network – which is now larger than many manufacturer-approved used car programmes – grew from fewer than 1,000

to more than 1,150 dealers and saw a total of 170,000 vehicle sales. Sean Kent, sales director, said: ‘There is potential to grow the network further still but it will only happen if we can recruit the right dealers. Our approach with the RAC Dealer Network has always been to put quality first.’

‘There is undoubtedly increasing demand in the used car sector for enhanced levels of warranty cover.’ Sean Kent

Warranty and MOT top list of benefits wanted by used car buyers A WARRANTY and an MOT with a service jointly top the list of benefits that used car customers want when buying a vehicle, according to a new survey of 1,989 motorists for the RAC Dealer Network. Eighty two per cent of people place these two benefits at the top of their list while other factors scoring highly include having the car prepared to a high standard (76 per cent) and reassurance that the dealer conforms to a recognised code of practice (56 per cent). 72 | CarDealerMag.co.uk

Other benefits mentioned in the survey include a money-back guarantee (57 per cent), a full valet and free tank of fuel (28 per cent), free breakdown cover (19 per cent) and driveaway insurance (15 per cent). Sean Kent, sales director, RAC Dealer Network, said: ‘These findings paint a very clear picture, showing the shape of the used car market in 2017. Motorists are looking to buy from the most credible and trustworthy source available to them.

‘They are interested in a range of benefits that provide them with as much reassurance as possible. A warranty and MOT are the most obvious and probably most useful part of this package but other factors are also popular. ‘This is very much the direction in which the RAC Dealer Network has been moving in recent years, providing comprehensive used car propositions such as RAC BuySure and working with bodies like the Chartered Institute of Trading Standards.’


DRIVE MORE BUSINESS Becoming an RAC Approved Dealer means you have access to the power of one of the UK’s most respected motoring brands. With over 8.2 million members, Approved Dealer status can help drive them to your forecourt. Call us today and benefit from RAC Approved status.

0330 100 3807

Call: Email: dealernetwork@rac.co.uk Visit: rac.co.uk/getapproved

CarDealerMag.co.uk | 73


FOCUS ON.

Warranty providers

Raising standards and profits with the Ultimate protection THE WMS GROUP

W: SafeandSound.co.uk T: 01844 293810

T

he WMS Group is shaking up the warranty industry and generating record sales for dealers with a series of groundbreaking developments across its flagship used car scheme. As one of the largest business-to-business warranty suppliers in the UK, the WMS Group has established a glowing reputation for delivering outstanding products, value and customer care to its 3,500+ strong dealer base. Consistently at the forefront of innovation, this year has been no exception following the launch of a first-of-its-kind, multi-million-pound consumer-facing marketing movement to promote their flagship scheme, Safe and Sound. Through a vast range of initiatives including an exclusive arrangement with Auto Trader and individual social media advertising campaigns, these campaigns are proving to maximise inquiries for the rapidly growing Safe and Sound network – with many dealers reporting record sales as a result. Featuring the brand’s celebrity figurehead, former Stig Ben Collins, and provided free of charge to supporting partners, the mediums will be viewed by a minimum of 16 million in-market car buyers year-on-year. Ben Dodgson, group marketing manager of Sascron Car Supermarkets, said: ‘These campaigns have resulted in a strong increase of email and telephone enquiries for Sascron’s dealerships. ‘The activity has enabled us to target so many local in-market buyers, generate fresh enquiries and maximise brand awareness, with thousands of post engagements and clicks to our stock page so far.’ Safe and Sound is the UK’s original and most comprehensive aftermarket scheme, featuring a six-month, full wear and tear warranty which

‘‘

Safe and Sound is the UK’s original and most comprehensive aftermarket scheme. 74 | CarDealerMag.co.uk

even includes diagnosis and batteries; a UK breakdown package; safety inspection plus full provenance and mileage verifications. It also includes an exclusive dealer buyback promise which demonstrates confidence in their stock by guaranteeing to buy the vehicle back as a part-exchange – regardless of age, mileage or condition. WMS Group managing director John Colinswood commented: ‘We are in a unique position to provide our network with not only the best product of its kind, but also all of the tools to attract and retain customers. ‘Our objective is to ensure that we continue delivering the highest level of consumer protection and many unique advantages to the

dealer base, whilst simultaneously driving up standards and dealer profits across the industry.’ Safe and Sound includes access to the group’s pioneering My Motor Manager CRM smartphone app – an invaluable tool for driving customers back to the selling dealership for service and repair work – plus a number of incentives such as up to 50 per cent cover free of charge when the customer purchases a longer term. Colinswood is optimistic about the coming months in view of the company’s expansion plans. ‘Our business is built on a strong customer-centric culture and we are proud to do many things differently, which is why we have experienced tremendous year-on-year growth. ‘It’s a very exciting time for us and these new developments will be instrumental in achieving a 30 per cent increase in the Safe and Sound network by Q1 2018.’ Safe and Sound is today offered by hundreds of dealerships that embrace only the highest customer care across the UK including many of the top franchises. [CD]


Reach 16 million in-market car buyers FREE OF CHARGE! Join the UK’s leading used car scheme and benefit from the largest customer acquisition campaign of its kind in the warranty sector! Becoming Safe and Sound approved not only provides your customers with the most comprehensive protection on the market today, but also enables you to reach millions of buyers with our exclusive Autotrader and Facebook marketing campaigns.

We have seen a huge increase in enquiries from the marketing activity and are delighted to report record sales across our used car division as a result.

Clive Henderson, Dealer Principal of Drivers (Peugeot) Prestatyn

As recommended by former Stig, Ben Collins

Safe and Sound includes: 60 point safety inspection Six month Ultimate warranty Six month UK breakdown cover Full provenance check Mileage verification Buy-back promise For the Ultimate used car scheme, there can only be one choice. Visit SafeandSound.co.uk or call 01844 293810 to find out more.

Request your free, no-obligation dealer pack today at www.WMSGroupUK.com or call 01844 293 817.

From the WMS Group

*You will receive your jacket after your first five x 6 month warranty and recovery packages have been issued with no further obligation. CarDealerMag.co.uk | 75


The monthly magazine for garage professionals For advertising and subscription inquiries contact Jon Hickey Sales manager j.hickey@blackballmedia.co.uk Tom Adams Account manager tom.adams@blackballmedia.co.uk

Or call 023 9252 2434

@_WorkshopMag

76 | CarDealerMag.co.uk

@workshopmag

workshopmagazine.co.uk


FOCUS ON.

Trade insurance

It’s all about protection... so make sure you’re covered Unfortunately, the worst CAN happen, so please don’t neglect this vital area of your business

A

s a car dealer, you invest a huge amount of time, energy – and money – into your business, so it’s only natural that you’ll want to make sure everything is protected should the worst happen. Unfortunately the worst can happen – and more frequently than you might think. We know that only too well because of the stories we bring you here at Car Dealer Magazine. Amongst all the successes and triumphs we tell our readers about, there are always stories that aren’t as happy or positive. Whether a single car is damaged in a collision; you have a break-in or fire at your premises; or a member of staff or a customer has an accident for which you are deemed responsible... the list of possible mishaps that can befall you almost doesn’t bear thinking about! Happily, however, you can protect yourself against most, if not all, eventualities with a motor trade insurance policy.

by JACK HEALY @jack_healy19

If we may, we would like to offer three pieces of advice in this area: firstly, please don’t neglect motor trade insurance. Don’t put it on the bottom of a to-do list that might well get mislaid in a pile of paperwork at your dealership office! Secondly, when it comes to making a decision, don’t rush the process – and if anything, commence any renewal process well before the actual renewal date. Take the time to ensure that the policy you are signing up for is adequate for your needs and covers you properly. Thirdly, don’t focus solely on price. We completely understand that the cost of any policy will be a huge consideration in any decisionmaking process, but there is little point in going for something cheap and cheerful if it’s going to leave you in a vulnerable position.

Take the time to ensure that the agreement you are entering into is adequate for your needs and provides the necessary levels of protection. As you might have already read in Car Dealer, Trade Insurance Provider of the Year is an important category in the annual Car Dealer Power Awards, reflecting its importance to the industry overall. (You can find out who our successful trio were for 2017 by turning to page 33 of this edition of the magazine.) And overleaf, we have some sound advice from our featured supplier Towergate Insurance, which is well worth a look. There is little point repeating here what you can read by simply turning the page, so do so right away and check out some sound advice when it comes to finding the cover you need at a competitive price. It’s a big decision – so please do give motor trade insurance some thought and make sure everything you have worked so hard for is properly protected.

FEATURED SUPPLIER

Towergate Insurance Brokers A complex and detailed purchase deserves your full attention.

P78 CarDealerMag.co.uk | 77


FOCUS ON.

Trade insurance

An introduction to motor dealership insurance TOWERGATE INSURANCE BROKERS

I

t’s unwise to pay too much, but it’s worse to pay too little. When you pay too much, you lose a little money – that’s all. When you pay too little, you can sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do, said John Ruskin. Motor trade insurance is a complex and detailed purchase, and while price will always be a huge driver in your decision, here are just a few areas that regularly get overlooked at that busy time of renewal. Underinsurance – The FCA recently found ‘an alarming degree of underinsurance’. You are insuring your physical assets to replace them in full for the price they cost on the day of the loss. So, if your ramps were £5,000 10 years ago, to replace them today could easily be £15,000. Insurers reduce the amount of the claim by the percentage of how underinsured you are. So, if you insured for £100k but should have insured for £200k, insurers will pay you 50 per cent, so you will receive £50k when you really needed £200k. The difference could be a few hundred pounds on the premium but a huge difference in a claims settlement.

W: towergate.co.uk T: 01442 281264

Business interruption – The part of the policy that pays the loss of profit when the company cannot trade because of a loss at the premises. Two parts of the cover are the amount insured and the period insurers will pay, typically 12 months. Once the site is cleared, planners and architects are instructed, but the building rebuild can easily take up to 12 months. The point of insurance is to restore you to the position you were in before the loss, as sadly all your customers will now be using your competitors. An 18- to 24-month indemnity period is far more suitable and again, a very small cost in terms of premium. How long would it take to get your customers back? Limits of liability – Claim values have changed significantly in the past 12 months. Insurers used to be able to discount the claim settlement for the seriously injured. This has now changed, and claims that would have been £7.5m would now cost insurers £14.5m. The amount over your insurer’s limit would be payable by you. So, if you have a £2m limit of indemnity for public liability, it is now no longer suitable to adequately protect you. Higher limits can be purchased and the premiums, again, can be relatively small.

Make sure you’ve got sufficient cover Despite how many brokers may call you at renewal time, there are very few insurers in the motor trade sector, and insurers are more selective than ever. Choose your broker carefully, and give yourself plenty of time before the renewal date. There is no reason why you cannot meet a broker six months from renewal, away from a deadline, to fully review what the broker has to offer and outline your requirements. An insurer who sees a detailed presentation of your business, from a broker who specialises in your sector and in good time before renewal, is more likely to look favourably on providing a competitive premium and the cover you need. Martin Castleton Cert CII

Towergate Insurance Brokers is a trading name of Towergate Underwriting Group Limited. Registered in England with company number 4043759. VAT Registration Number: 447284724. Registered Address: Towergate House, Eclipse Park, Sittingbourne Road, Maidstone, Kent ME14 3EN. Authorised and regulated by the Financial Conduct Authority.

78 | CarDealerMag.co.uk


EXCLUSIVE MOTOR TRADE INSURANCE Whether you own a single workshop, a chain of local garages or a multi-site car dealership, Towergate Insurance Brokers have over 20 years’ experience in arranging insurance for the motor trade sector. As your trusted advisor, we will keep you up to date with legislation changes, claims updates and regular contact, to ensure you are aware of emerging risks. Don’t just take our word for it……

“Martin has been our Motor Trade Policy Advisor for a number of years now, he has always delivered on his promises and delivered excellent service” Benz Bavarian Ltd • Exclusive Motor Trade Insurance Products • Enhanced Covers

• Fixed premium stability • Low Claims Rebates

Get in touch with our expert in your sector, to discuss your motor trade insurance needs:

Martin Castleton Cert CII, Account Executive Tel: 01442 281264 Email: martin.castleton@towergate.co.uk

Towergate Insurance Brokers is a trading name of Towergate Underwriting Group Limited. Registered in England with company number 4043759. VAT Registration Number: 447284724. Registered Address: Towergate House, Eclipse Park, Sittingbourne Rd, Maidstone, Kent ME14 3EN. Authorised and regulated by the Financial Conduct Authority.

CarDealerMag.co.uk | 79


FOCUS ON.

CarGurus

Do you have an attribution How to measure and optimise your digital marketing spend in a multi-channel world CARGURUS

W: https://www.cargurus.co.uk/signup/cardealeraug17

Lisa Iannucci is the director of international dealer marketing at CarGurus, the UK’s fastestgrowing car shopping website. Here, she explains how dealers can drive increased ROI from their digital marketing programmes.

I

s your marketing spend helping you sell cars? You might think so – but can you prove it? How are you measuring effectiveness across channels? Which digital touchpoints have the most influence on your customer’s decision to come to your store and buy from you? It’s not so simple these days. The purchase journey of today’s digital shopper is more complex than ever, with shoppers using multiple online platforms and devices to find their next car. In fact, a recent Google/Luth Research study found that across three months of a consumer’s purchase journey, looking for their next car involved more than 900 digital interactions, 71 per cent of which were on a mobile device. Additionally, research from CarGurus shows that more than 80 per cent of shoppers use at least three different sites, and a quarter visit more than seven. No doubt you are already investing in digital: search ads, banner ads, third-party classified sites, email and social media. The problem isn’t that there’s a lack of opportunities or places to spend your money. Rather, it’s the opposite. With such a plethora of digital channels available, it’s hard to know where you should be investing your marketing budgets for maximum ROI. For dealerships to accurately measure marketing ROI, they need to understand the multiple influences on a shopper before he or she comes on to the forecourt to buy a car. That’s where multi-touch attribution comes in. Multi-touch attribution: Attribution modelling aims to solve this problem of ‘where to spend’

by helping you understand which channels influence each of your sales. Most dealerships are already trying to attribute sales to different marketing channels. For example, when a classified ads site sends you a lead and that shopper ends up converting, you tend to attribute the sale to that particular site. But this doesn’t tell the whole story, especially in a multi-channel, multi-device world, as it doesn’t tell you which touchpoint really mattered most to your customer. And if you’re unable to answer that question, you’re probably not attributing your sales effectively enough. First-touch attribution was perhaps a marketer’s earliest method of digital measurement. It looks at the channel that brought a customer in the door initially and allocates all credit to it. However, you also want to know what influenced the shopper to make that final decision to buy from you – and a simple click on an ad or an email doesn’t quite capture this information accurately enough. Last-touch attribution is another model that people have historically used to measure digital effectiveness. The opposite to first-touch attribution, the last-click model leaves out everything preceding the sale and can show you if it was an online chat, phone call or e-lead that got a shopper to visit you and leave with a vehicle. The downside, however, is we now know that for the typical shopper there are hours of online research before they decide to submit a query to a dealership. What’s going on during all that research? Why did the shopper pick you over other dealers in their area? These important questions aren’t fully addressed by last-touch attribution. In fact, the method itself has been very much in the news as of late, with Google announcing its plans to kill off last-click in

its own products to provide a fairer picture of attribution to its advertisers. Neither first- nor last-click attribution models capture the all-important midsection of the shopper journey. The solution isn’t complex. All that’s required is to look at attribution with a more holistic lens, and that’s through multi-touch attribution – considering all steps in the car buyer’s path to purchase and allocating appropriate value to touchpoints that precede the point of conversion. Technology and tracking have evolved to where you can quite easily get a clear picture of what your shoppers are doing and when, allowing you to refine and optimise your marketing approach and seek the most value from your spend. Key metrics to measure: Engagement and lead generation Engagement and lead generation are probably the two most critical metrics – and one drives the

167% GROWTH

YEAR-ON-YEAR IN UNIQUE MONTHLY USERS

1.4 MILLION UNIQUE MONTHLY VISITORS

80 | CarDealerMag.co.uk


problem? T: 0808 164 9275

Attribution modelling can solve the problem of ‘where to spend’ by helping you understand which channels influence each of your sales. However, in a multi-touch, multi-device world, you need to make sure the way you measure attribution is telling you a complete and accurate story other. It helps to think of engagement in terms of visibility. The more visible you are, the greater your chances of making genuine connections with shoppers. The challenge is doing this in the most cost-effective way. Visibility may come by way of online ads, your own website, third-party classified ad sites, email newsletters, social media – or, more likely, a combination of these. It helps to narrow your focus to a handful of marketing channels, and the ones you test should be the places where you are confident shoppers are going to find out about you. What if you learn that the channels you’ve been investing in aren’t actually that successful at driving engagement for your business? It can be intimidating to make changes in the way you split your marketing investment. But if you are serious about maximising ROI, you have to be willing to get your hands dirty with data. Attributing via engagement shows you which

channels are actually influencing the success of your business – and multi-touch attribution is about learning what influences shoppers’ engagement along their path to purchase. Looking at shopper engagement on your own website is a good place to start: consider on-site engagement metrics such as duration on site, dwell time, bounce rates and page views to capture how people navigate your site. Are some pages more popular than others? This information can offer you extremely powerful insights about your customer: what they do and when, and what interests them most when they visit certain channels throughout their journey. Third-party classified sites such as CarGurus are also a great source of engagement data. In fact, at CarGurus, it’s important to us that we offer our dealers built-in tools that give them insight into their listings’ visibility on our site as well as other advanced analytics that show how consumers are interacting with their inventory.

UK No. 1 IN ENGAGEMENT WITH 16.5 AVERAGE VIEWS PER VISIT AND 9.7 AVERAGE MINUTES SPENT PER VISIT

STOCK FROM MORE THAN

6,000 DEALERS

With lead generation metrics, results are even easier to quantify. What you’re looking for in leadgen are signs of purchase intent – that is, the kind of actions that low-funnel shoppers take when they are close to making a purchase. Third-party sources can be useful for this data, too. For example, what you learn from thirdparty site analytics can tell you a lot about what shoppers are doing close to the point of sale. That’s because classified sites are a popular source of information that cater to low-funnel behaviours – dealership information, operating hours, directions, phone numbers, and so on. So you should ask your lead providers how many map clicks, directions clicks and the like are occurring on your listings. These are the kinds of signals that demonstrate strong shopper interest in what you offer. As shoppers move down the funnel, think about the behaviours that typically indicate purchase intent. When a shopper’s behaviour shows they’re seeking more information about a dealer – where they are or what their URL is, for example – this indicates that they are interested in taking the next step and making an inquiry. The marketing science Marketing today is as much a science as it is an art. The data you glean from your digital programmes can help you optimise your media planning to drive a stronger ROI. At CarGurus, we are big believers in data-driven marketing, and even in our own marketing investments we measure every interaction we have with our users both on and off our site. Our vision is always to optimise spend while attracting a growing volume of engaged shoppers. In today’s digital landscape, there’s no shortage of data; the key is to look at the most useful metrics and learn to attribute with accuracy so that you can invest efficiently to drive the business.

THE UK’s

FASTEST-GROWING CAR SHOPPING SITE* *Comsore, March 2017

CarDealerMag.co.uk | 81


DATA FILE. 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

Our 66-year-old mechanic is finding life hard Q

Our most senior mechanic has just turned 66. The manual side of his job is becoming a bit of a challenge. He recently had arthritis in his wrist and was off for a few weeks. Our staff have a clause in their contract specifying retirement at 65. We really appreciate his years of service but would like to know where we stand. To begin with, the default retirement age has been abolished. Dismissing your employee on the mere grounds that he had agreed to a default retirement age in his employment contract would most likely be deemed as age discrimination and in contravention of the Equality Act 2010. The protected characteristic of age is the only area where direct discrimination is permissible provided it is a proportionate means of achieving

A

JOIN CAR DEALER CLUB AND GET ALL THESE BENEFITS WORTH £1,000s FOR JUST £39.99 82 | CarDealerMag.co.uk

a legitimate aim. It follows that a blanket policy of enforcing a retirement age is not justifiable. The courts have explained that the legitimate aim is unlikely to be cost consideration on its own but is a relevant factor. The legitimate aim must be of a public interest nature. Pursuit of inter-generational fairness and providing access to jobs to the younger generation while maintaining a workforce of a variety of ages could be a legitimate aim. Respecting the dignity of elderly workers was also recognised by the courts as a legitimate aim. It appears to be justifiable to force age-related retirement as the preferred alternative to performance management and capability-based dismissal where performance starts

to fall. The ‘proportionate means’ requirement is another way of saying no more than necessary. It requires the employer to give serious thought to options other than dismissal: job restructure, reducing hours, etc. If, due to his age, the frailty of the employee is such that he can no longer perform his job role satisfactorily, this becomes a matter of lost capability. The employee’s performance should be measured and monitored over a period of time, allowing for the performance to improve with the provision of necessary support. The employer will also be well advised to seek evidence and the opinion of the employee’s medical team and consult with the employee on his view of the situation.

Redeployment or job variation ought to be considered and any reasonable adjustments made. If the capability is objectively assessed as lost based on the evidence, the employer can be justified in proceeding to dismissal. The absence related to the bout of arthritis will not be sufficient to justify dismissal. If the condition has reached an advanced stage and severely limits your employee’s physical capability to perform the job, then the employer can appraise the position of the employee in view of his lacking capability following the above-outlined process. Otherwise, the arthritis ought to be viewed as a chronic medical condition, and the limitations it imposes on the employee could arguably be overcome by making reasonable adjustments.

Buy and sell trade stock quickly and profitably

Exclusive five per cent discount on your tailormade trade insurance

ADVICE

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.

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)

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.


Finance firm is claiming £8,000

Q

A finance company I no longer do business with accepted the rejection of a van under the Consumer Rights Act which I told them all along was not applicable. The customer was a business, the issue was minor and the van was under manufacturer’s warranty. I refused to accept a rejection, but the finance company accepted it anyway, sold the car at auction and is now demanding £8,000 from me for their loss. It seems naïve of the finance company to believe the Consumer Rights Act applied here. The customer’s claim against the finance company was pursuant to the Supply of Goods Act 1973 and the finance company’s claim against you relies on the Sale of Goods Act 1979. Any claim against you will depend upon the issue with the vehicle and whether it did indeed render it of unsatisfactory quality or unfit for purpose, but if the issue was minor and covered under warranty, the rejection acceptance does seem hasty and perhaps unnecessary. Whether they will be successful in any claim against you remains to be seen, but you certainly have a defence in that they failed to mitigate loss and have a repair carried out under the manufacturer’s warranty.

A

WANT TO UPGRADE?

WHY I LOVE LAWGISTICS

‘It’s great to have someone on the phone to give you valuable advice’ DALE Perrins is the director of Central Motors, a used car dealership in the West Midlands. Becoming a customer of Lawgistics has made life far easier for him, after some previous legal hardships. ‘Before we joined Lawgistics, we’d had a couple of bad cases where we should have defended ourselves better, but we didn’t have the knowledge to do so. ‘I had quite a bad experience previously where I tried to defend something in court myself – thinking it was fine as I had a legal document that showed I was in the right – but the judge awarded the customer £800.’ After that experience, Perrins was pointed in the direction of Lawgistics by a fellow trader, and since then, the legal experts have proved to be a valuable asset in on-going situations. ‘As we speak, we’re dealing with a customer who’s had her car for six months. The car’s automatic gearbox developed a fault, and she tried to make out we’d sold her a car with a known issue. It had passed all of our pre-sale checks, and she’d done six months worth of driving in the

car. She had been quoted two or three grand for repairs, which obviously scared her. ‘My mechanics quoted her £1,500, and I thought that would be the end of it. But then she came to me and said, ‘‘I’ve got to pay the bill’’. ‘I spoke to Lawgistics and they advised me to make a goodwill gesture, which I did. I offered to pay half the bill, but she still said I had to pay in full. ‘She’s currently having it repaired, after which she’ll probably write to me, again asking me to pay the bill. ‘At that point, all I have to do is forward it to Lawgistics and they’ll take it from there. ‘Having Lawgistics is like having your own solicitor. ‘It’s great to have someone on the end of the phone to say whether you’re in the right or wrong, and how you should deal with it.’ Adam Weller

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 relevant legal areas and documentation. There really is a package for everyone with Lawgistics.

EASY STEPS TO JOIN 1. GO TO CARDEALERCLUB.COM 2. HIT SUBSCRIBE

Discount on software and free health check app from Dragon2000

Get 10 per cent off App Creatives’ development costs for your exclusive app

Book an appointment with Paragon Car Finance and get £50*

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 | 83


DATA FILE.

Thestatistics

n

SMMT Sales Data

n

Taking Stock

Another decline in registrations ‘but figures still strong’ Forecasters were right to say demand for new cars would start to cool

T

he UK new car market has declined for a third consecutive month with 243,454 units registered in June, according to figures recently released by the SMMT. Registrations fell at a slower pace than in the previous two months, by 4.8 per cent, as demand continued to stabilise following a record first quarter and the subsequent market turbulence caused by the recent changes to Vehicle Excise Duty. The market is now more in line with 2017 forecasts. Demand in the month was down across private, fleet and business registrations, recording falls of 7.8 per cent, 2.4 per cent and 8.3 per cent respectively. Meanwhile, the alternatively-fuelled vehicles sector enjoyed notable growth, with demand rising 29 per cent to 10,721 units to maintain a record 4.4 per cent market share for a second month. Petrol registrations rose by 2.5 per cent and diesel fell 14.7 per cent. Compact cars, typically powered by smaller petrol engines, proved most popular for all buyers, with superminis

and small family cars accounting for almost 60 per cent of the market. Small family cars and SUVs were the only two segments to register growth in June, up six per cent and 11.3 per cent respectively. Year-to-date, overall performance remains strong, falling slightly by 1.3 per cent to 1,401,811 units and putting the market on track to meet 2017 forecasts. Fleet and business buyers drove demand across the first six months with registrations up 1.5 per cent and 2.7 per cent respectively in contrast to a 4.8 per cent drop in private purchases, although almost 650,000 consumers have chosen a new car this year. Mike Hawes, SMMT chief executive, above, said: ‘As forecast, demand for new cars has started to cool following

five consecutive years of solid growth – but the numbers are still strong and the first half of the year is the second biggest on record. ‘Provided consumer and business confidence holds, we expect demand to remain at a similarly high level over the coming months. ‘It’s encouraging to see alternativelyfuelled vehicles experiencing rapid growth but adoption is still at a relatively low level and more long-term incentives are required if this new generation of vehicles is to be a more common sight on British roads.’ Chris Bosworth, director of strategy at Close Brothers Motor Finance, said: ‘With inflation hitting its highest level in four years and no real-term increase in wages, it’s perhaps unsurprising that car buyers have decided to take stock and hold off purchases. ‘There may be further disruption afoot: with the Brexit negotiations in full swing, the UK has entered into a period of economic uncertainty, and we anticipate this will have a real impact on consumer spending habits in the months ahead.’

VW Golf takes top spot as June stats published IT might seem as though the Ford Fiesta has been at the top of the sales charts for ever and a day, but it actually didn’t take the top spot in June. That honour went to the Volkswagen Golf, which recorded a figure of 8,808 registrations for the month. The Fiesta wasn’t far behind, however, with 8,601 registrations – and many of the usual suspects made up 84 | CarDealerMag.co.uk

the rest of the top 10. In third place was the Ford Focus (8,283 registrations), fourth was the Vauxhall Astra (6,977) and fifth was the Mini (6,630). The rest of June’s top 10 was as follows: Vauxhall Corsa (5,739); Nissan Qashqai (5,103); VW Polo (4,705); BMW 3 Series (4,264) and Mercedes C-Class (4,102). The Blue Oval reigns supreme in the year-to-date figures. The Ford

Fiesta has notched up a total of 59,380 registrations so far this year and 40,045 examples of Focus have been shifted. Despite not being top of the pops in June, Fiesta has enjoyed eight years as Britain’s favourite car and it passes its sales crown to an all-new model this month. In fact, a million Brits have ordered new Fiestas since 2008. New Fiesta driven, p58

SMMT sales data June/year to date

5

Top

Most-improved manufacturers in June

Lotus +411% Dacia

+45%

Aston Martin +31% Porsche +29% Volkswagen +17%

5

Bottom

Worst-performing manufacturers in June Jeep -75% DS -50% Subaru -37% Maserati -33% Infiniti -32%


CITROEN -21%

SEAT +15%

June 2017

Marque

2017

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

438 448 112 15,081 168 19,149 7 4,685 2,845 872 5,062 27,095 5,043 7,965 383 2,960 363 7,972 6,201 1,161 46 107 3,255 56 15,715 314 9,015 1,361 13,067 7,688 1,302 7,316 4,901 7,512 881 362 202 3,486 9,556 20,981 22,639 5,018 65 599 243,454

% market share 0.18 0.18 0.05 6.19 0.07 7.87 0.00 1.92 1.17 0.36 2.08 11.13 2.07 3.27 0.16 1.22 0.15 3.27 2.55 0.48 0.02 0.04 1.34 0.02 6.46 0.13 3.70 0.56 5.37 3.16 0.53 3.01 2.01 3.09 0.36 0.15 0.08 1.43 3.93 8.62 9.30 2.06 0.03 0.25

June 2016

2016

409 415 85 14,503 188 18,712 0 6,005 1,957 1,772 6,442 30,244 5,144 8,294 569 2,922 1,473 8,403 5,669 1,370 9 162 4,014 0 15,566 336 8,718 1,257 13,785 8,773 1,002 9,156 4,245 9,035 1,005 392 325 3,358 9,928 25,578 19,196 4,824 76 450 255,766

% market share 0.16 0.16 0.03 5.67 0.07 7.32 0.00 2.35 0.77 0.69 2.52 11.82 2.01 3.24 0.22 1.14 0.58 3.29 2.22 0.54 0.00 0.06 1.57 0.00 6.09 0.13 3.41 0.49 5.39 3.43 0.39 3.58 1.66 3.53 0.39 0.15 0.13 1.31 3.88 10.00 7.51 1.89 0.03 0.18

% change 7.09 7.95 31.76 3.99 -10.64 2.34 0.00 -21.98 45.38 -50.79 -21.42 -10.41 -1.96 -3.97 -32.69 1.30 -75.36 -5.13 9.38 -15.26 411.11 -33.95 -18.91 0.00 0.96 -6.55 3.41 8.27 -5.21 -12.37 29.94 -20.10 15.45 -16.86 -12.34 -7.65 -37.85 3.81 -3.75 -17.97 17.94 4.02 -14.47 33.11 -4.81

2017 2,293 2,701 982 89,719 968 92,638 42 29,849 14,387 5,146 28,695 168,316 29,227 50,100 2,132 20,390 3,792 50,650 45,675 6,442 165 963 22,561 264 98,557 1,993 34,988 8,916 85,085 47,546 7,557 40,824 29,491 42,558 5,987 2,276 1,412 21,817 56,428 112,487 108,027 24,519 361 2,885 1,401,811

Year-to-date (YTD) % market share 0.16 0.19 0.07 6.40 0.07 6.61 0.00 2.13 1.03 0.37 2.05 12.01 2.08 3.57 0.15 1.45 0.27 3.61 3.26 0.46 0.01 0.07 1.61 0.02 7.03 0.14 2.50 0.64 6.07 3.39 0.54 2.91 2.10 3.04 0.43 0.16 0.10 1.56 4.03 8.02 7.71 1.75 0.03 0.21

2016

2,005 2,705 467 89,521 961 91,610 3 37,781 13,445 9,436 33,324 171,192 32,449 48,077 1,565 16,597 7,600 46,343 42,559 7,416 140 712 26,381 0 88,603 1,896 33,963 10,544 78,582 54,776 6,712 44,570 24,634 42,233 5,743 2,342 1,828 19,944 54,504 132,947 109,566 22,629 423 1,908 1,420,636

% market share 0.14 0.19 0.03 6.30 0.07 6.45 0.00 2.66 0.95 0.66 2.35 12.05 2.28 3.38 0.11 1.17 0.53 3.26 3.00 0.52 0.01 0.05 1.86 0.00 6.24 0.13 2.39 0.74 5.53 3.86 0.47 3.14 1.73 2.97 0.40 0.16 0.13 1.40 3.84 9.36 7.71 1.59 0.03 0.13

% change 14.36 -0.15 110.28 0.22 0.73 1.12 1,300.00 -20.99 7.01 -45.46 -13.89 -1.68 -9.93 4.21 36.23 22.85 -50.11 9.29 7.32 -13.13 17.86 35.25 -14.48 0.00 11.23 5.12 3.02 -15.44 8.28 -13.20 12.59 -8.40 19.72 0.77 4.25 -2.82 -22.76 9.39 3.53 -15.39 -1.40 8.35 -14.66 51.21 -1.33

Figures supplied by SMMT

CarDealerMag.co.uk | 85


AUCTIONS.

Auto Trader Click Awards celebrate a decade of rewarding digital distinction. bit.ly/click-113

Aston Barclay’s Super Centre ‘will be unique’ Size and scale of the operation will be ‘second to none’

A

ston Barclay has revealed further details of its 18-acre Donington Park Super Centre. Amid hopes that the group’s total sales will double over the next five years, the vehicle remarketing company plans to create 25 new jobs at the site by 2018, including a buyer services team whose role will be to look after customers. Opening later this year and expanding through to September 2018, the Donington centre will be Aston Barclay’s largest site. There will be two glazed auction lanes, offering dealer, fleet and OEM sales, and room to store 400 vehicles. Automotive auction veteran Zaiga Jinkinson has been appointed as the Donington branch’s centre manager, having spent 30 years in the industry. Neil Hodson, pictured, CEO of Aston Barclay, said: ‘I think the size and scale of the operation is second to none. ‘The location is in the spine of the country, surrounded by one of the largest conurbations of franchise and independent

dealers, so the positioning is superb for us. ‘I think the pedigree of coming to the heart of motorsport here at Donington is actually quite different for an auction buyer. You’re on a racetrack, you’ve got the museum, you’re in a room that was used by Rolls-Royce years ago in our building. ‘I think that pedigree is different to a small brick building at the back of a trading estate. The whole ambience is different. ‘It’s totally unique. The company’s putting in a substantial amount of money – a multi-million-pound investment into science, people and IT. I think that’s unique as well. ‘We’ll be putting the customers at the centre of our thinking and making this an experience, not just a car auction. It’s completely different.’ Laurence Vaughan, non-executive chairman, added: ‘The great luxury is being able to design something from scratch with the scale to deliver for customers. ‘You can put things together very differently to what other people are doing.’

We can capitalise on our flexibility SENIOR figures from Aston Barclay have comes from the fact there’s been three said that the current climate of political years of huge volumes of sales and people uncertainty could give the brand the are on contracts that are coming to an opportunity to grow. end. From a retail perspective, that means Speaking to Car Dealer at a media event they’ve got to do something and those cars for the company’s new Super Centre at have got to go somewhere. We’ve got a lot Donington Park, non-executive chairman of momentum in the business.’ Laurence Vaughan said: ‘Everybody likes CEO Neil Hodson added: ‘I think the a stable economy with political certainty. flexible approach we’ve got, being able Uncertainty tends to delay retail decisions. to move really quickly and being able to ‘This business is slightly different deploy new technology really quickly, is an Car dealer new strip ad 3/16 26/9/16 14:32 Page 1 though because of the opportunity that advantage for us.’

THE FLEET AUCTION GROUP - THE UK’S

N1 O

TRADE ONLY AUCTION

Henstock AUCTION STATIONS

Analytics is changing the remarketing sector

R

emarketing is about bringing sellers and professional buyers together to balance supply and demand. Increasingly, the sector is turning to data analytics to make that happen. In fact, the use of business-intelligence data and analytics is revolutionising the sector. BCA utilises the latest cutting-edge cloud technology and machine-learning techniques to analyse and interpret vast amounts of historic and current market data to deliver valuable information to customers – both buyers and sellers alike. BCA can assist vendors in making key decisions to assist them in their prime goal of turning their asset into cash as quickly as possible. The company has introduced new methods to analyse and deliver strategic information back to sellers that helps them improve conversion rates, improve average selling values and time to sale, while generating maximum exposure with buyers for available stock. BCA looks at a wider range of data to inform reserve-price setting, such as condition-adjusted vehicle valuations drawn from a unique BCA database, vehicle demand data (which channel the vehicle might best sell in, which sales to enter it in) and utilising consumer data such as retail market pricing and demand information. BCA data also provides customers with information on the benefits of vehicle preparation, mechanical checks, vehicle movements and other activities in the remarketing process. Real-time access to this data improves first-time conversions and makes sure provisional bids are dealt with using the most up-to-date information. Over and above this, enhanced digital marketing strategies and stock profiling ensure that professional buyers are made aware of vehicles they might be interested in based on previous purchasing activity. It may be a quiet revolution, but data analytics is changing the way the remarketing sector operates.

Who is Simon Henstock? ‚

He is BCA UK s chief operating officer for remarketing. Visit bca.co.uk or call 0845 600 6644.

Purpose built 12 acre auction complex Central UK location Fixed cost buyers premium Fleet Car Sales every Monday & Thursday at 10am Collection of vehicles 24 hours a day, 7 days a week Excellent variety of weekly stock from premium sources Regular Top Car Sales. Vans, Truck & Plant every week Enclosed and heated auction halls and viewing area All new website & stock locator. On-line bidding The UK’s finest auction restaurant Call for account application

The Fleet Auction Group Ltd., Stephenson Industrial Estate, Coalville, Leicestershire LE67 3HG Telephone: 01530 833535 Email: info@fleetauctiongroup.com www.fleetauctiongroup.com 86 | CarDealerMag.co.uk


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

Headline figure declines as the summer slowdown makes its presence felt . . . but Stuart Pearson, BCA’s managing director for UK remarketing, notes that buyers are continuing to compete strongly for good retail-quality stock

W

ith seasonal pressures coming into play as the markets slow for the summer holiday period, the headline average value of a used car fell by £66 (0.74 per cent) to £8,795 – a very similar decline to that seen in June 2016. Year-on-year, the headline figure was up by £597, equivalent to a 7.2 per cent increase in average values – a result reflecting steady demand and also influenced by BCA offering a richer mix of stock with a lower age and mileage profile over the past 12 months. Average mileage declined by around 3,500 miles, whilst age fell by three months compared to a year ago. The majority of the price pressure was seen in the fleet and lease sector, where average values slipped by 3.3 per cent over the month. However, dealer part-exchange vehicles were static and values for nearly-new cars fell by 0.5

per cent. The summer months typically see some pressure exerted on average values so we are not surprised to see the headline figure fall slightly in June, as it has done in previous years. Supply is balancing out with demand, and conversion rates are showing signs of improvement with buyers continuing to compete strongly for good retailquality stock. While cars presented in the best condition will typically outperform the market, vendors should not expect similar returns for vehicles in poor or below-average condition. It is important to appraise vehicles honestly and accurately as there is little to be gained by placing over-aspirational reserve prices on poor-condition cars. Average values in the fleet and lease sector

Headline average value of a used car :

£8,795

declined by £347 (3.3 per cent) compared to May, but remained above £10,000 as they have throughout 2017. Retained value against original MRP (Manufacturer’s Retail Price) fell by nearly a point to 41.91 per cent, whilst year-on-year values were up by £430 (4.4 per cent), as both age and mileage continued to reduce. Values were static in the dealer part-exchange sector, down just £1 compared to May at £4,657. Longer-term values have been relatively stable in this sector, with year-on-year values ahead by £150 (3.3 per cent). Average age and mileage little changed over the period. Values for nearly-new vehicle values fell by just £133 in June, equivalent to a 0.5 per cent fall against May. Model mix has a significant effect in this low-volume sector.

Dealer part exchange values:

£4,657

CarDealerMag.co.uk | 87


REAL DEALS.

IN ASSOCIATION WITH

A unique, refined Mini that even outdoes the Cooper S ADAM WELLER uncovers a gem for sale in Somerset – it’s a wonderful piece of history and the result of an interesting collaboration

A

car with an interesting history is either a curse or a blessing, depending on   how much you enjoy games of 20 questions with motoring enthusiasts. This Mini certainly has a unique back-story, and is one of only 100 examples. This is the snappily named Checker Marcos Mini Cooper, a fascinating happy accident produced for a dealer in Tokyo by Marcos Cars. Marcos was a British sports car manufacturer founded in 1959. After experimenting for several years, the company’s fortunes took an upturn in 1964 and 1965. This was largely down to two designs that would become the defining shapes of Marcos; the 1800GT, whose shape would influence almost everything else they produced before the doors finally shut in 2007, and the Mini Marcos, which is not to be mistaken with the car you see on this page. The Mini Marcos was a front-wheel-drive coupe that was the marque’s most popular product, with more than 1,300 examples produced during its multi-decade lifespan. Initial production ended in 1975, but the car was revived for the Japanese market in the early 1990s. The Mini Marcos utilised the sub-frames and running gear from the regular Mini, and this would prove to be a stumbling block for the small firm as they prepared for the model’s revival. Jem Marsh, the company’s co-founder, could not get Mini’s then-owner Rover to sell them the necessary parts. Not one to give up easily, Marsh purchased 100 Minis in order to produce the Japanese Mini Marcos order. With the cars stripped to their shells for parts, an obvious question loomed; what does a smallvolume sportscar manufacturer do with 100 Mini body shells? Enter Checker Motors of Tokyo, Japan. An agreement to produce 100 special Minis was thrashed out, and this little slice of faux-’60s charm was the result. The Checker Marcos Mini Cooper is styled to look like a classic Mini Cooper S. However, this imitator is in fact an improved package over the original. It features a 1300cc, 67bhp BMC twin carburettor 88 | CarDealerMag.co.uk

This Mini certainly has a unique back-story

Inside the Checker Marcos Mini Cooper engine tuned by renowned Mini engine builder Richard Longman. The punchy motor includes a Kent 285 camshaft, a modified cylinder head, performance exhaust and K&N filters. The result is a marked improvement over the ’60s Cooper 1275 S, which takes more than 10 seconds to accelerate to 60 miles per hour – the Checker Marcos Mini gets there in 8.2 seconds.

It will also top 100mph, which is more than can be said for the original. While the car’s interior matches the exterior as a throwback to the ’60s Cooper, it does feature certain creature comforts such as a CD Player, which is stowed away beneath the passenger side of the dashboard. So this Marcos Mini – which started out life as a fairly standard 1975 model before Jem Marsh got his hands on it – has all the looks of a 1960s Mini Cooper S. However, the price of this quicker, refined rarity is a mere £14,995. A decent, genuine 1960s Cooper S could easily cost you triple that. This example, currently for sale at Crosskeys Garage in Taunton, is pristine. With just 11,500 miles on the clock since its transition to Marcos spec, this car needed nothing more than a thorough polish once it arrived in the showroom. The car has had just one owner, and has been well maintained since it was road registered in 1997. While this Mini is unlikely to shoot up in value, it is a wonderful, littleknown piece of history between two manufacturers who are forever linked in the minds of British sportscar enthusiasts. To those in the know, it’s a unique, special car, and to those who don’t, it’s merely a wonderful classic Mini.


MARKET INSIGHT.

..in association with ASE-global.com

Share prices fall amid increasing uncertainty Election result, Brexit, and industry developments are playing their part, says Adam Cottam

T

he share prices of the majority of the listed motor retail groups in the UK fell backwards in June, mainly owing to the increased uncertainty caused by the result of June’s general election. This was compounded by an ever-weakening new car market and the future of technology in the media spotlight, leaving lots of questions to be answered about the future of the industry. Marshall released a pre-close trading statement which showed a very positive first half of 2017, largely driven by new retail performance, somewhat bucking the UK trend. The outlook for the very end of the year was very cautious, however, in light of the issues mentioned above. Marshall also increased its location footprint by acquiring Leeds Volvo from Harratts – a move that took its Volvo representation to nine sites. Share price performance As we’ve said, most share prices in the sector fell backwards in June, with the recent election result probably to blame. Theresa May’s weakened position in the Commons has left investors jittery, with the outcome of Brexit less certain. In a move that was supposed to strengthen our position in Europe, the prime minister took us through an election that asked more questions than it answered. The very fact her long-term viability as PM is now in question shows how much things have changed, and it is this kind of backdrop that slows investment decisions, which in turn might explain why prices have slipped. Even the FTSE100 index, which had been benefiting from the weak pound, dropped in value, further highlighting the market sentiment. It perhaps doesn’t help that the expected decline in the new car market is clearly being seen in registration data. The June figures showed a decline for a third successive month, falling back 4.8 per cent year on the year for the month and 1.3 per cent in the year-to-date. In addition to this, the industry faces a certain degree of uncertainty with Volvo declaring they would cease production of vehicles powered solely by the internal combustion engine (ICE) by 2019 and France stating it would not have the ICE on its roads by 2040. Whether the technology will be sufficient to provide the range drivers require remains to be seen but

Share price movement from January 3 to June 30, 2017

Share price movement from January 3 to May 31, 2017

Pendragon

99.2%

116.0%

Vertu

111.5%

104.6%

Lookers

97.9%

109.6%

Inchcape

107.5%

116.4%

Cambria

113.3%

120.0%

Caffyns

93.3%

97.1%

Marshall

98.2%

109.8%

development by most of the major manufacturers continues apace. Questions also have to be asked about the adequacy of the infrastructure to support electric vehicles in such numbers. Financial performance Marshall released a pre-close trading statement, which showed a very strong first half to June 2017. One of the major contributors was the retail division which was pushed on by a material

contribution from the Ridgeway acquisition. New car sales were much better than expected, and registrations outperformed UK growth. This growth came from the higher-margin retail market rather than fleet, which helped boost profitability. Used was similarly strong on volume but there were signs of margin pressure. Aftersales performed solidly and grew as expected. The outlook for the second half is slightly cautious, mainly because of the uncertain trading environment and the wider UK economic situation in light of the election result and Brexit. Transaction activity June was a busy month for transactions across the industry. As we have said, Marshall bought Leeds Volvo, which saw their number of sites representing the brand increase to nine and cemented their position as Volvo’s biggest partner. Marshall also sold their Totton site in Southampton, on a vacant possession basis, for £2 million. This freehold was acquired as part of the Ridgeway deal in May 2016. At ASE we are seeing an uplift in transaction activity generally and we expect to see more deals complete this year.

Who is Adam Cottam? Adam is corporate finance executive at dealer profitability specialist ASE plc. You can read his column here every month. CarDealerMag.co.uk | 89


90 | CarDealerMag.co.uk


RECRUITMENT.

Hendy’s new F&I chief delighted to be aboard

THE WARRANTY GROUP

‘No doubt that Tim Ward will play important role in our future’

H

endy has strengthened its management team with the appointment of Tim Ward as group finance and insurance manager. Ward has joined the company from his role as national sales manager for Jaguar Financial Services and with more than 20 years’ experience of working in the finance industry. Hendy commercial director Mark Busby said he was delighted to welcome Ward to the team, adding that his finance and business development expertise would help the company. He added: ‘Having a strong team is key to the success of Hendy, whether that is in the dealerships or working at group level. I have no doubt that Tim will play an important role in our future. ‘His background in finance and his work at Jaguar Financial Services give him valuable experience to help us maximise performance in all areas of the business.’ Ward, pictured, said: ‘I have dealt with the group since I joined the industry in 1997 and have always admired the way in which it has grown,

New challenge for Sean looks after staff and has a total commitment to customer satisfaction. I have watched the group expand and go from strength to strength, so I was delighted to be offered this role and look forward to being involved in the future of Hendy.’ As part of the senior management team, Ward will be involved in helping all areas of the business maximise opportunities, and has joined at an exciting time for the company. Following the takeover of Lifestyle Group last year, Hendy has announced investment plans for new and upgraded facilities throughout the group from Devon to Hampshire, Sussex, Surrey and Kent.

SEAN Kent has been promoted to head of account management at The Warranty Group, responsible for all of the company’s non-motor manufacturer clients and relationships in the UK. He joined TWG in 2008 as a senior underwriter and has since held a number of key roles, having previously worked at EWC Insurance Services and Homeserve. At TWG, he has been involved in the creation and management of the RAC Dealer Network and is also involved with large dealer groups, car supermarkets, Kwik-fit and Santander. He said: ‘I’m really pleased to be taking up this position while the company is in such good shape.’

Available on iPad FREE app download free subscription interactive content Powered by

Search for ‘Car Dealer Magazine’ in the iTunes store CarDealerMag.co.uk | 91


DATA FILE.

James Litton

TRADER TALES

Lessons we should all learn from the election

I

n addition to the negative impact on trading, the recent general election offered many lessons that we would all do well to heed. A YouGov poll of 52,615 voters after the election provides a dramatic insight into the behavioural and value differences between old and young voters. The Conservatives claimed just 22 per cent of the vote from 20- to 24-year-olds compared to 58 per cent of 60-69 year olds. Labour, on the other hand, took 62 per cent of the vote from 20- to 24-year-olds and just 27 per cent of the 60- to 69-year-olds’ vote. Is a uniform customer experience really fit for 2017 with this evidence? The other major divide amongst the voting population is the geographical impact on party results. While this outcome may be more predictable, party dominance of some regions of the country is still as evident as ever. It is worth noting that the Labour Party’s triumph over the Tories in Canterbury has been attributed to a large transient student population – further demonstrating the power of the millennial. I have recently been working with sales executives from up and down the country who are new to our industry. In my opinion, there is a clear divide between the ability and energy of the northern candidates compared to the southern cohort. Given that salary levels in our industry are static and have been for a long time, the widening cost-of-living divide suggests that for people in the north, the motor trade is still a viable longterm career, but may be less so in the south. Forgetting your political values for just one moment, would you describe your leadership style as Theresa May or Jeremy Corbyn? Until the point that the election was called, Theresa May had appeared to be calm under pressure and very measured – maybe too much so; her decision to duck the political debates definitely resulted in a lack of respect from voters and showed apparent weakness. Corbyn, having fought internal squabbling for months, really stuck to his values and campaigned hard on them. Lastly, the impact of social media was keenly felt. According to a Guardian article published shortly after polling day, Labour used Facebook, Twitter and YouTube to aggressively promote their manifesto, winning over voters who might otherwise have abstained, whereas the Tories negatively campaigned against Labour in marginal seats, resulting in the status quo. Most businesses adopt very tame social media strategies with the fear of backlash ever present, but perhaps a valuedriven or opinionated campaign can drive strong results?

‘Labour used Facebook, Twitter and YouTube to promote their manifesto.’

Who is James Litton?

James is general manager – director of Volvo Cars Poole. He always has something to say about the industry he loves. 92 | CarDealerMag.co.uk

Suppliers If you’re looking for a motor trade supplier you can find Aftersales

DMS

Key Cabinets

eDynamix

Dragon2000

Keytracker Ltd

App Development

Finance

Lead Generation

AppCreatives

Close Brothers

Autoweb

Approved Schemes

Finance

Lead Generation

RAC Approved Dealer Network

First Response

Codeweavers

Auctions & Trade-To-Trade Sales

Finance

Lead Generation

Aston Barclay

Paragon Car Finance

iVendi

Auctions & Trade-To -Trade Sales

Insurance

Legal & Compliance

BCA

AutoProtect

Lawgistics

Auctions & Trade to Trade Sales

Insurance

Paint Protection

Trade Stock Auction

Plan Insurance

AutoProtect

W: edynamix.com T: 0845 413 0000 E: enquiries@edynamix.com Info: Our web-based applications provide a connected and simple platform via which dealers can manage a customer throughout the service lifecycle.

W: appcreatives.co.uk T: 020 7544 8636 E: enquiries@appcreatives.co.uk Info: A leading mobile app development company that specialises in automotive mobile apps for all platforms.

W: rac.co.uk/getapproved T: 0330 1591111 E: dealernetwork@rac.co.uk Info: Being authorised to use the RAC name as a badge of quality creates strong consumer confidence and increases profitability.

W: astonbarclay.net T: 01245 450700 E: info@astonbarclay.net Info: Aston Barclay delivers exceptional service and results through its remarketing centres and proven digital platforms, creating choice and driving standards.

W: bca.co.uk T: 0344 875 3480 E: customerservices@bca.com Info: BCA’s remarketing programmes deliver volume, choice and availability for buyers, and speed, efficiency and marketleading returns for sellers.

W: tsa.co.uk T: 01844 853 000 E: info@tsa.co.uk Info: Your partner for part-ex and fleet disposals to the trade. Mobile- and tablet-friendly online auction with dedicated account managers and support team.

W: dragon2000.co.uk T: 01327 222333 E: sales@dragon2000.co.uk Info: Dragon2000 supplies multi-award-winning dealer management systems and fully integrated websites, with one point of data entry.

W: closemotorfinance.co.uk T: 01302 646464 E: receptionmf@closebrothers.com Info: We work in partnership with more than 7,000 dealers of all sizes plus manufacturers, and specialise in financing new and used cars, motorbikes and LCVs.

W: firstresponsefinance.co.uk T: 0115 946 6317 E: marketing@frfl.co.uk Info: First Response is an award-winning UK finance company providing simple financial solutions. Get in touch and let us help increase your profits.

W: paragoncarfinance.co.uk T: 0345 149 7777 E: pcf@paragonbank.co.uk Info: Working with us offers you more than competitive rates. Our range of products helps you sell more cars, light commercial vehicles and motorhomes.

W: autoprotect.co.uk T: 01279 456500 E: sales@autoprotect.co.uk Info: A provider of warranties, GAP, SMART repair insurance, Foresight Service Plan and many other sources of income to manufacturers and retailers.

W: planinsurance.co.uk T: 0333 003 0042 E: info@planinsurance.co.uk Info: Leading motor trade insurance specialists. We combine expertly tailored policies, advanced IT solutions and gold-standard service.

W: Keytracker.com T: 0121 559 9000 E: sales@keytracker.co.uk Info: Robust Mechanical and Electronic Key Systems and Cabinets with 2 Year Warranty, 24 Hr service – Guaranteed Best prices - Rent or Buy

W: autowebdesign.co.uk T: 01757 211700 E: marketing@autoweb.co.uk Info: We provide the industry with first-class digital marketing and web design solutions, from responsive websites to PPC campaigns.

W: codeweavers.net T: 0800 021 0888 E: contactus@codeweavers.net Info: Codeweavers’ solutions have a proven track record of helping manufacturers, dealers and finance lenders sell more.

W: ivendi.com T: 0345 226 0503 E: tellmemore@ivendi.com Info: Award-winning vehicle-retailing technology and highly qualified lead generation. See why more than 7,000 dealers now work with us.

W: lawgistics.co.uk T: 01480 455500 E: sales@lawgistics.co.uk Info: The motor trade’s leading legal firm. Passionate about fairness, our team are there to protect your interests. Not anticonsumer, just pro-trader.

W: autoprotect.co.uk/ceramic-coat T: 01279 456500 E: ayoungs@autoprotect.co.uk Info: Ceramic Coat is the most advanced paint and interior protection system available. AutoProtect is the sole provider to the UK’s motor manufacturing and dealership networks.

To have your details included here call (023) 9252 2434 and ask for Suppliers Guide listings


guide

Confessions

YOUR REAL STORIES

the details of selected companies here Paint Protection

Vehicle Inspections

Warranty

GardX

AA Cars

Car Care Plan

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.

Paint Protection

Vehicle Logistics & Delivery

Warranty

Supagard

Movex Logistics

Centurion Warranties

Parts

Vehicle Preparation & Cleaning

Warranty

Euro Car Parts

National Car Cleaning

WMS

Recruitment

Vehicle Remarketing

Website Design & Digital Marketing

Autotech Recruit

Auto Trader

GForces

Trade Bodies

Vehicle Remarketing

Website Design & Digital Marketing

Ben

CarGurus

Goldsand Digital

W: gardx.co.uk T: 01243 376426 E: information@gardx.co.uk Info: GardX manufactures a range of innovative products that are approved by motor manufacturers and used by motor dealers worldwide.

W: supagard.com T: 0141 633 5933 E: info@supagard.co.uk Info: The UK’s number one since 1988 and the preferred choice of the AM Top 100 and major vehicle manufacturers.

W: eurocarparts.com T: 020 3474 0500 Info: The UK’s number one distributor of car parts for all makes of cars and light commercial vehicles. Door-to-door delivery service six days a week.

W: autotechrecruit.co.uk T: 01234 432983 E: hello@autotechrecruit.co.uk Info: Trust us to supply temporary cover for sickness, holiday and business peaks. Vetted, experienced MOT testers and technicians, UK-wide network.

W: ben.org.uk T: 08081 311 333 Info: Ben is a not-for-profit organisation that partners with the automotive industry to provide support for life to its people and their families.

W: movex.co.uk T: 020 8551 1060 E: daren@movex.co.uk Info: The UK’s leading online vehicle logistics platform, easing vehicle movements for trade-only customers, with a network of 600plus approved transport providers.

W: nationalcarclean.co.uk T: 01268 565050 E: info@nationalcarclean.co.uk Info: Over the past 30 years we have grown from a family business to a national enterprise, providing a complete valeting service.

W: trade.autotrader.co.uk T: 0345 111 0002 Info: Auto Trader is the UK’s largest digital automotive marketplace. The marketplace brings together the largest and most engaged consumer audience.

W: cargurus.co.uk T: 0800 808 5557 E: dealers_uk@cargurus.com Info: Leading car shopping website that brings transparency to the car search process, helping consumers easily find great deals.

W: centurionwarranties.co.uk T: 0800 368 7420 E: enquiries@centurionwarranties.co.uk Info: Protection for the road ahead. Are you protected? More than 35 years’ experience in the industry.

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.

Trade Bodies

Vehicle Remarketing

Website Design & Digital Marketing

Independent Garage Association

Friday-Ad

Spidersnet

W: independentgarageassociation.co.uk T: 0845 305 4230 E: enquiries@rmif.co.uk Info: The IGA is the largest representative body in the independent garage sector, helping independents to thrive in all aspects of their business.

W: fridaymediagroup.com T: 01273 283395 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: spidersnet.co.uk T: 01273 283394 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.

I had a bad back and was a bad liar too!

S

kiving is a terrible sin, we all know that. Not only are you defrauding your employer by not turning up when you’re perfectly capable of doing so, you are piling pressure on colleagues who have to pick up the slack while you’re away. I have to admit it’s something I was guilty of a couple of years ago... but I was found out in a rather embarrassing way. Let me explain. Being of a certain age, I suffer from a bit of back trouble and had to visit one of those chiropractors to be straightened out a couple of times a week for a month or so. We got on okay, me and Julie (that was her name) and the appointments weren’t unpleasant in actual fact. I was allowed to knock off work early, drive the mile or so to her practice and ‘endure’ 40 minutes or so of massage and manipulation. We got chatting during these sessions. I told her what I did for a living and where I worked; she told me a bit about her family and so on. Anyway, I eventually got better and didn’t need any more appointments. But I was used to the routine of finishing work early from time to time so basically lied to my boss and said I was still in pain and attending the sessions. He didn’t bat an eyelid, so I continued with my early finishes for a few more weeks. But then, things went wrong. One morning after a fictitious appointment, I arrived at the dealership just doing the odd stretch or two as I walked in, just to add a bit of credibility to my supposed painful predicament. My boss came over, looking concerned. ‘All OK?’ he asked. ‘You’re a martyr to that back of yours aren’t you?’ I sensed something was up but had no choice but to play along. ‘It’s pretty bad at the moment,’ I replied, adding hastily, ‘but I’m very grateful to you for letting me finish early for my appointments.’ ‘That’s OK,’ he said (or something similar). ‘We’re an understanding bunch. But just to let you know, we had an interesting punter through the doors yesterday asking for you as she was thinking of changing her car. Said she was a physio or chiropractor or something and dropped in at about 4.30. Julie, I think her name was...’

‘He didn’t bat an eyelid, so I continued with my early finishes for a few weeks.’

Tell us your story

Have you something to confess? We’d love to hear your tale of woe. Email our head of news and features (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 | 93


KEY NOTES.

..in association with Traka

Seamless servicing Linking different systems can enhance the customer experience, says Paul Smith

L

ast month, this column brought you some details of how RFID, IP video and Onboard Diagnostics (OBD) devices could all be applied to the twin tasks of improving the in-dealership customer experience and delivering workshop efficiencies. But no sooner had I penned that one, I was pleased to find out that my tech musings around IP video have already been ‘made flesh’ (or software) by Korean innovator Hyundai which has launched an IP video-connected ‘workshop automation’ system called 360 Workshop Automation. Admittedly, IP video is not core to this workshop management solution but linkage to Automatic Number Plate Recognition (ANPR) and network cameras definitely enhances it. The system I saw was in place at Richmond Hyundai in Guildford, which just happens to be one of the dealerships we are talking to about installing Traka Automotive’s key management system right now. 360 Workshop Automation fits into a new online-based fleet customer-focused programme which claims to be the industry’s quickest online service booking system. Booking a service online using this system should take no more than 10 seconds as it involves six short steps to complete – even spitting out an instant price for estimated works. Data gathered at this booking stage is automatically loaded and made available within eDynamix’s health check application, called iVHC, each morning ready for the service advisors and technicians to begin carrying out the required vehicle health checks. Any identified concerns can be priced using Hyundai’s own menu pricing engine which is embedded within iVHC, and then sent to the customer for pre-authorisation. Work authorised

online through the Hyundai portal is then automatically updated and reflected in iVHC. This ensures that the relevant parts and service departments are notified and authority can then be passed to the technician to complete the work, thus providing a seamless process for both customer and dealership. This is already generating superior efficiencies in the workshop, while avoiding nasty on-the-day surprises for fleet customers getting their cars serviced. But the system gets better: Hyundai also offers an integration through to an ANPR software solution serving designated IP cameras sited at the entrance to the dealership to capture visitors’ licence plates. By marrying ANPR records to cars as they arrive, it’s possible to deliver a tailorable welcome message at the dealership’s entrance barrier, giving timely instruction on which bay to park in ready for their service. Simultaneously, an alert is sent to the service team – telling them that a specific car has arrived and triggering a tablet-based physical inspection or ‘check-in’ process, during which any obvious additional jobs found can be costed, added to the schedule and authorised by the customer now they are on site. Once in the workshop, the customer can track

the car’s progress on a dedicated screen in the customer waiting area. Any extra work found when the vehicle is on the ramp is then relayed via SMS, with the option to request instant authorisation to speed up the process. Fleet customers also receive a free vehicle health check which is submitted live from the workshop, accompanied by supporting images and pricing to fix. Once the service is complete, the handover process is managed through a touch-screen tablet, also in the waiting area, and includes an opportunity for customers to provide instant feedback on the experience. The system continues to work even after the customer and vehicle have left the premises: personalised communications are sent by a management system to ensure additional or advisory work is carried out in good time to keep the vehicle roadworthy. This system is fully integrated into Hyundai’s existing software to allow seamless data access. If you already have a workshop vehicle health check solution or EMACS as well as network cameras covering your entrances and exits, it might be worth looking at how to link these systems up in this way. You could also potentially bring Traka key management together with both of these solutions to create a totally holistic vehicle progress solution which helps keep track of keys as cars travel through various stages from parking, through servicing to valeting and finally re-parking ready for collection. It seems that Hyundai fleet operators in the Guildford area are already enjoying one version of the next leap forward for aftersales customer experience and workshop efficiency. How soon will the rest of us get access to it?

Who is Paul Smith?

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

Keys can make you money… Find out how at www.traka-automotive.com The only viable key management solution for automotive Email automotive@traka.com or call 0845 225 2910

1-6pg.indd 1 94 | traka-auto CarDealerMag.co.uk

15/12/2016 09:56


LONG-TERMERS. LATEST FROM THE FLEET...

Full of character and with plenty of space

Mazda MX-5 RF

THE KNOWLEDGE Model: Mazda MX-5 RF 160PS Sport Nav Price: £27,165 Engine: 2.0-litre four-cylinder petrol Power: 158bhp Max speed: 134mph 0-60mph: 7.4 seconds Emissions: 161g/km MPG (combined): 40.9 Mileage: 8,247

Love affair with the convertible shows no sign of abating, despite noise and visibility problems

THIS MONTH’S HIGHLIGHT A two-hour drive home from London at 1am with the roof down.

by AIDAN RENNIE-JONES @AidanRJ

E

ven now, hundreds of miles later, I’m still pretty smitten with the MX-5 RF. OK, so taller people might not fit in it very well and the cabin is definitely what you’d describe as ‘cosy’. But I’m only 5’9” and fit in there perfectly, so you’ll hear no complaints from me about space. Every morning when I push the start button and the 2.0-litre engine kicks into life, I can’t help but smile. There’s something so characterful about the way this car feels when you drive it. We’ve had some cracking weather recently too so the roof has been down almost every day. Even at one in the morning on a two-hour drive back from London, the roof just had to be down. However, it’s not all frivolity in the MX-5 RF; this car still has some very irritating faults. The main issue I have with it is how it feels with the roof up on the motorway; the noise is extremely irritating at more than 70mph – a constant drone and whistle from the roof that could drive you to the edge. Luckily, this can be partially drowned out by the excellent Bose sound system, but it’s still there in the background and that’s very annoying.

The other issue is a lack of visibility. The windows are actually very good and aren’t too small – if you’re a shorty like me. The real problem lies in the rear three-quarter vision – or should I say complete lack of it. Although the rear buttresses make the Mazda look great, they’re so thick that entire cars are completely hidden from view and you have to constantly rely on the mirrors and blind-spot system, and I just can’t adjust to this. It feels alien to me not being able to see what’s next to me on the motorway, and is rather disconcerting. Despite these flaws, I still have a huge soft spot for this car and can forgive it anything because of the way it feels when you’re pushing down a country road with the roof down and brilliant weather. The gearbox still impresses me and is so enjoyable to use, and I’m learning very quickly that this really is a car that you can use every day. People generally also seem to love this car. Anybody who has been a passenger has commented on what a nice car it is and how comfortable it is, not least my girlfriend – although besides the retractable roof, her favourite aspect of the car are the excellent heated

seats. People also tend to comment on what a good-looking little car it is, and they’re right. I recently went on holiday to Paris and was going to leave the car at my girlfriend’s house while we were away, but that meant packing my luggage into the boot, which could have been problematic seeing as though it’s very small. I was pleasantly surprised, though, to discover that my suitcase fitted perfectly with room to spare either side for a carrier bag or two. What’s great is that unlike many hardtop convertibles, the MX-5 RF’s roof doesn’t take away any of the boot space, so roof up or down you always have the same amount of storage. Overall, the MX-5 RF seems to cope very well with daily life, and despite its sporty suspension it’s a very comfortable car with very supportive seats and lots of chutzpah, covering most types of road with ease. I still maintain it isn’t quite a motorway cruiser, but it copes fine with any road that you hurl it towards. Stick it on an A or B road, though, and it feels absolutely brilliant – cornering like a housefly on the twisty stuff too, with brilliantly accurate steering. CarDealerMag.co.uk | 95


LONG-TERMERS. LATEST FROM THE FLEET...

Seat Ateca The Seat Ateca has been put through its paces as a cycle support car. How did it get on? by JACK EVANS @jackrober

A

s you may have noticed, car manufacturers are keen to promote their vehicles as part of an overall ‘lifestyle’. Why not take your SUV surfing? Or hop into your estate and hit the slopes? Usually, I wouldn’t go along with this. Cars are multi-purpose, I’ll admit – but I’ve never felt an inescapable need to take up hang-gliding. However, for once, I’ve actually gone full lifestyle, and thankfully the Seat Ateca has performed admirably. I took part in the South Wales Velothon recently – an 87-mile cycle ride from Cardiff, through Monmouthshire and back – taking in some of the steepest hills that the area has to offer. Suffice to say, I was hoping that the Ateca would make the sections either side of the ride as easy as possible, and it didn’t disappoint. The bike rack that came fitted with the car on delivery proved to be something of a godsend, making it easy to fit my road bike to the top of the SUV. With just three contact points – an arm that latches on to the cycle’s frame, as well as two ratchet straps for either wheel – you’d think it wouldn’t be all that stable. However, the bike barely wobbled when travelling down the motorway at 70mph – and there wasn’t too much wind noise, either. That left the rest of the car for all the little bits – tyres, helmets and bike pumps – as well as one extra bike for a fellow rider. I was genuinely staggered by how much you

THE KNOWLEDGE Model: Seat Ateca XCellence Price: £32,720 Engine: 2.0-litre Power Power: 187bhp Torque: 400Nm Max speed: 132mph 0-60mph: 7.3 seconds MPG (combined): 53.3 mpg Emissions: 135g/km Mileage: 8,025 THIS MONTH’S HIGHLIGHT The comfortable journey back from Wales after a gruelling 87-mile velothon. 96 | CarDealerMag.co.uk

The Seat Ateca performs admirably as a lifestyle companion

could fit in it – with the deep side bins providing ample room for water bottles, too. Cycle event finished, I have to admit I was a little worse for wear. Legs aching, I wasn’t looking forward to the journey back from Usk in Monmouthshire to Portsmouth. However, with its adaptive cruise control set to a steady 70mph, the Ateca whisked me homewards without the merest hint of protest – something that my legs and I were pleased about. Did it hamper economy? Well, during regular driving I see the low 40s, and this is with a mixture of urban and motorway driving. This trip, with the roof bars fitted, included 240 miles of motorway, with around 25 miles of city driving thrown in for good measure. It used pretty much the entire tank – and this cost just shy of £60 to fill up. I see that as pretty good value – although I reckon that the roof bars affect the car’s fuelsipping abilities a fair amount. One issue reared its head, though, when we drove through a sudden downpour. For some reason, the car’s adaptive cruise control – which uses lasers to sense the distance between itself and the car in front – disabled itself. When it did finally come back on, it became confused by the masses of spray conjured up by the cars in front. It’s something that you really don’t expect, and leaves you having to manage the throttle yourself. Hardly a chore, but irritating

when you know that the car’s technology is letting the side down. Overall, the Ateca has proved to be a pretty cracking all-rounder. I drove past a fair amount of Tiguans – the Ateca’s sister car – and I’d put my neck out and say the Seat looks the better of the two. I’ll admit the colour that our car is in doesn’t do it a huge amount of favours, but it’s just powerful enough to give it plenty of presence on the road – though many of my colleagues continue to knock my choice!

REST OF THE FLEET

Audi A6 Mileage: 7,394 The A6 was ideal to take to Le Mans last month since the Audi team had pulled out. It was a fitting homage, plus the estate boot and smooth cruise made it an ideal pairing for the 900-mile round trip!


Skoda Superb The Czech estate proves to be music to the ears on a long-haul trip – sat ‘nag’ aside... by SIMON DAVIS @SimonDavisNZ

A

fter multiple trips to and from the airport, and even shorter trips from the office to home, this month I finally got the chance to take our Skoda Superb long-termer out on a proper long-distance journey. The destination? Manchester. Reason for travel? Radiohead were playing at the Old Trafford Cricket Ground and there was no way that I was going to miss it. From Portsmouth, the entire journey to Manchester and back added up to about 500 miles and close to nine hours on the road. A proper slog, then. I was incredibly pleased that the Skoda was my weapon of choice for the journey. The Czech manufacturer reckons its 2.0-litre, 148bhp diesel engine will manage 62.8mpg on the combined cycle, and thanks to its practical estate layout, there was plenty of room for my two housemates as well. With all of our bags packed into the Superb’s ginormous 660-litre boot (there was a ridiculous amount of room to spare, too), we set off out of Portsmouth, hit the first of a number of motorways and engaged the car’s adaptive cruise control. Now, adaptive cruise control seems to be a feature that divides opinion. When turned on, it will detect any cars in front of you and match

your speed to that of the vehicle ahead. If you then indicate and pull out to overtake, it will automatically accelerate and bring you back up to your set speed. Some people find this speed-matching feature a bit annoying – mainly because they won’t realise that their car has slowed down and been travelling at 60mph for the past couple of miles.

Volvo S90

Citroen C3

Mileage: 7,997

Mileage: 9,116

Our Volvo long-termer is nearing the end of its time on our fleet and it’s left our Mal bitten by the Volvo bug. A bigger and better Volvo is now the only car on his wishlist.

This picture of the newly cleaned C3 was taken at Leigh Delamere services on the M4. Car Dealer Dave thoroughly enjoyed a comfortable drive from the south coast to visit family in Wales.

The Skoda Superb has plenty of room inside – but takes up a fair amount on the outside

THE KNOWLEDGE Model: Skoda Superb Estate Laurin & Klement Price: £33,555 Engine: 2.0-litre TDI Power: 148bhp Max speed: 135mph 0-60mph: 8.9 seconds Emissions: 119g/km MPG (combined): 62.8 Mileage: 15,826 THIS MONTH’S HIGHLIGHT Stress-free driving on a 500-mile round trip to see one of my favourite bands live.

However, if you stay alert and anticipate slower vehicles ahead of you, adaptive cruise control is a brilliant thing to have. I can probably count on one hand the number of times my feet touched the pedals while on the motorway. There was one feature that did get a bit irritating on the journey, however – the satellite navigation. This wasn’t annoying because it didn’t work, but because the announcements were far too frequent and often unnecessary. At times, it seemed like every mile we travelled the system would pipe up and tell us to ‘continue driving straight’, even when there wasn’t an option of turning off anywhere. This constant repetition of a singular soundbite in a not entirely human voice eventually earned the sat nav the not-soaffectionate nickname ‘Theresa’. Thankfully, there was a setting that could change the frequency of the announcements so they weren’t as intrusive. Eventually we arrived in Manchester. The journey had gone incredibly smoothly – aside from a small amount of animosity towards the sat nav system. However, parking proved to be a bit of a challenge. This wasn’t because we couldn’t find a space, but rather because the Skoda isn’t exactly a small car and the car park itself was incredibly tight. That said, after a considerable amount of manoeuvring we were parked up and off to the hotel. The journey home to Portsmouth the next day was just as stress-free, and while we didn’t quite match the Skoda’s claimed 62.8mpg economy figure, we still managed 56mpg or so – which isn’t bad! For the entire trip, fuel came to £60 or so. All up, the Skoda was really impressive. This sort of journey is what the car is made for, and the ease with which it undertook the trip cemented it as a proper long-distance cruiser in my eyes. There was only one thing that really overshadowed the Skoda, and that was the fact that the Radiohead gig was hands-down the best live show I’ve ever been to. CarDealerMag.co.uk | 97


BAGGOTT.

Have you got our FREE iPad app? Download it here bit.ly/CDMiPad

I was trying to get afloat... but customer service was all at sea!

T

he car industry takes a lot of flak – often undeserved, but always relentless. Only recently we’ve had a barrage of abuse from national newspapers over alleged ‘mis-selling’ of PCPs. That was enough for stinging front pages and many angry column inches. Then there’s the VW scandal that’s still rumbling on – now it’s the fix for the cheat that’s the issue, with some owners complaining it’s ‘ruined’ their car. What’s more, there’s the general air of contempt that swirls around the car industry. Line up car salesmen alongside estate agents, traffic wardens and, whisper it quietly, journalists too, and in a Who To Kick In The Shins First competition, chances are it’s us hacks and you salesmen that’ll be pretty bruised first. However, as much as people moan about car sales, I think I’ve now found an industry that’s so far behind it it’s laughable. Keeping people happy in the car sales world – or any business come to think of it – is a matter of communication. Explaining what’s happening, telling people what you’re going to do and keeping them informed is a surefire way of keeping people on side. Someone just needs to tell the boat world that’s how it should be done. I’ve been delving into the murky world of boats recently and have been flabbergasted at just how backward the industry is. It starts on the classified sales sites. The pictures are farcical, the details scarce and four out of five adverts are out of date. Then when you do find a vessel that fits the bill, and is still for sale, the chances of being able to get through to the broker to arrange a viewing or, God forbid, ask for more details are very slim indeed. I can only imagine that one boat sale’s commission is enough to live off for the rest of their working lives, such is the success rate in receiving a return phone call. I got so cheesed off with the brokers I decided instead to go direct to a manufacturer. I was looking for a small RIB so went to a local(ish) maker who had an approved used scheme, my thinking being that they should know how to look after a customer. How wrong I was. Four phone calls later in an attempt to try to garner some more details about the boats for sale on their website and not a single returned call. Voicemails were ignored and messages left with reception went unanswered. How on earth do these companies make any money? Here I was, having made a decision to buy one of their products – a viewing and a little more information were all that was needed to seal the deal, yet still nothing. Two weeks later I tried again – this time finally getting through to someone who had a vague notion of the art of selling. By vague, I mean he knew how to speak into a telephone, something that had been missed off the rest of

Who is James Baggott?

the staff’s inductions. He was pretty good, told me what I needed to know and arranged a time for me to see the boat – something that took more back and forth as the owner (don’t ask) wanted to use it when I wanted to see it. Yet still I battled on, eventually arriving at the designated marina early one Saturday morning to fit around salesman and owner. A friend and I checked it over, all looked good and an offer was made. Price agreed, hands shook, I was promised an invoice and some paperwork. Eventually it arrived and I wired the money across, asking for an acknowledgement and a time for the handover. Anyone would have thought I was asking for them to hand over the deeds to their house. Getting a reply was nigh-on impossible. I tried for four days to get through. All I wanted was a mere nod that my money had arrived – yet nothing. Finally, after four calls in a day, they responded and arranged

James Baggott ‘He’d obviously been in AGAINST OUR BETTER JUDGMENT, WE GIVE OUR CEO THE LAST WORD EACH MONTH

bed most of the morning nursing a hangover’

a time for the handover. The big day arrived and, as agreed, I arrived at midday with colleagues who had taken time off to help. Obviously there was no sign of the salesman. He eventually called 20 minutes later, saying he would be an hour. Would you leave your new customers waiting an hour and 20 minutes for a handover? When he finally arrived he was blurry-eyed and stank of booze – he’d obviously been in bed most of the morning nursing a hangover. His handover was as shocking as you’d expect, just one step up from slinging us the keys and telling us to get on our way. And the aftersales has been just as poor – three weeks later I’m still waiting for the paperwork and a promise of an appointment to fix a few niggles. It has, and will likely remain, the worst buying experience of my life. I’m very pleased with the boat, but shocked at the mismanagement and poor service a company offering products for sale that would rival mid-range BMWs in price has delivered. If it’s shown me anything, it’s that however much dirt is slung at the car industry, when it comes to sales, we’re so far ahead of some other industries it’s absurd. Oh, and if you are ever thinking about buying a RIB, my advice would be to steer clear of Cobra. I wouldn’t normally name and shame, but this time it would be a poor public service not to…

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. 98 | CarDealerMag.co.uk

C

M

Y

CM

MY

CY

CMY

K


0115 946 6370 enquiries@frfl.co.uk www.firstesponsefinance.co.uk CarDealerMag.co.uk | 99


transported checked sold valeted repaired stored photographed resold

My life.

BCA were there, the whole way.

A vehicle’s life can be a long one, and it’s reassuring to know that BCA are by your side all the way. Our vehicles do far more than just appear at auctions. We’re there at every stage of the journey. Providing logistical, in-ownership services as well as a host of pre-remarketing support. Everything is provided with one clear objective, to keep you and your business moving forward.

Find out more about the journey at bca.co.uk


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.