Car Dealer Magazine: Issue 115

USED CAR AWARDS: ALL THE LATEST ON THE INDUSTRY’S BEST NIGHT OUT

Issue 115 | October 2017 | CarDealerMag.co.uk | £3.50

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EDITORIAL HEAD OF EDITORIAL Rebecca Chaplin

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HEAD OF DESIGN Graeme Windell

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PRODUCTION EDITOR Dave Brown

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FEATURES EDITOR Jack Evans

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SENIOR STAFF WRITER Darren Cassey

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STAFF WRITER Simon Davis

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ADVERTISING SALES MANAGER Jon Hickey

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ACCOUNT MANAGER Michelle Searle

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

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

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

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new car market is in WELCOME. THE decline, there are scrappage schemes galore and used diesel values are dropping. It seems all those factors we’ve been banging on about for ages – Brexit, dieselgate and so on – are finally hitting, and they’re hitting hard.

It’s fair to say that carmakers have done their best to react to the situation. We reported in the last issue that the government had announced that sales of new petrol- and diesel-only cars would be banned from 2040.

Manufacturers have picked up the gauntlet and run with it. Several have introduced scrappage schemes to help the environment and boost trade (p28).

It’s not surprising then that I’ve been hearing from used car dealers who are less than taken with these schemes, which, as we know, entice potential customers into new rather than nearly new or three-year-old cars.

In this issue of Car Dealer, we report from the Frankfurt Motor Show where manufacturers took the opportunity to demonstrate their visions of future mobility.

To those of you who have never been to the Frankfurt show, you’re the wise ones. Not because the content is rubbish or because it’s a waste of time, but because of the sheer distance you have to walk.

In the 11 hours I was at the event, I covered 12 miles and did 23,924 steps. The fact no-one has yet offered an electric scooter or Segway to journalists, who traipse the halls in formal suits and uncomfortable shoes, is madness to me.

However, as September is here and the Christmas decorations are in the shops (yes, I said it), at least it gave me the opportunity to take some exercise!

Every step was worth it, too, as the conversations I had with the bosses of your franchises showed that maybe every figure and prediction we’re being quoted doesn’t

quite reflect what’s been happening in the industry. A few brands seem to have foolproof plans, thanks to wholerange revamps, which have kept sales high and customers interested, despite pains in the market.

There’s a good chance I’m never going to mention electric cars again by the way, since it seems as though every page that I’ve touched in this magazine somehow has something to do with the wondrous benefits and transformational effect they’re having on our industry.

Fortunately for you high-octane fans, Jack has been driving some of the most incredible Mercedes-AMG machines lately. From p54, he brings you the ultimate guide to these kings of power, which are celebrating their 50th anniversary in 2017. In addition, James has been driving AMG’s newest GT C Edition 50 model.

I’m not sure who allocated the workload for September (probably me) but while I was walking mile after mile in Frankfurt, Darren was trying out the new Lexus LC 500h and the newest member of the team, Ryan, was test-driving the new Volkswagen Polo. You can read all about those in the Forecourt section.

The luckiest chap of all, though, has to be Leon. He’s been getting behind the wheel of the new Audi A8 in Germany and finding out what it takes to not drive a car – and let it do all the hard work for you in traffic.

All in all, it’s been a mad one, and hopefully you’ll be able to tell that when you take a closer look at the mag.

As always, I hope you enjoy the issue. .

Rebecca Chaplin Head of Editorial

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INSIDE. ISSUE 115 I OCTOBER 2017

Dashboard

06 A Perfect Partnership 10 Around the UK 12 World’s Smallest Dealership 14 So You Wanna Be A Car Dealer? 22 Used Car Awards 25 Rebecca Chaplin 33 Around the World 35 Frankfurt Motor Show 36 Finance 42 Big Mike 47 Feedback

The best coverage of the Frankfurt Motor Show – our top 10 show stars plus interviews with leading industry figures

50

Second Lookers Outlet opens – plus more UK news

12

72 Lots to talk about: Your guide to live chat services

54

‘‘

Forecourt Volkswagen’s new Polo driven

Volkswagen Polo

Filthy old diesel cars should be immediately stopped and removed from the road.

James Baggott

Lexus LC 500h

Feature

54

50 Years of AMG

Data File 98 Car Dealer Club The Statistics Auctions Taking Stock A Global View Market Insight Recruitment Suppliers Guide

Celebrating 50 years of AMG – and the cars are only going to get faster in future!

Key Notes with Traka Long-termers James Baggott

48 50

78 80 82 84 86 88 91 92 94 95 98

OUR EVENTS...

As voted for by dealers, Car Dealer Power is unique. It’s all over for 2017 but you can go online to bit.ly/winners-2017 to find out who won the trophies this year.

The Car Dealer Used Car Awards, sponsored by Black Horse, celebrate the used car industry. This year’s event takes place on Monday, November 27 – more info on p25.

The UK’s biggest and best automotive trade expo features the Live Stage, breakout sessions, workshops and more. Planning is well under way – visit cardealerexpo.co.uk for more info.

CarDealerMag.co.uk | 05

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

Our website at CarDealerMag.co.uk

Do we know of any I HAVE invested a lot of money in a bang up-todate body shop and for the last three years have been dealing in cat D cars (2011 onwards) that have a manufacturer’s warranty of at least two years to run.

I have been selling all of the repaired cars on eBay. But the last nine months have seen a slowdown on sales. Do any of you guys know of anyone in the trade who deals in cat D cars?

What is your take on cat D cars?

Has anyone got any experience in the resale of damage-repaired cars?

Kido Having spent seven years working with categorised vehicles, I found that most dealers stayed well clear of them. Categorised cars generally fetch around 50 per cent of their non write-off value at auction and the big franchised groups and independents won’t touch them, so your pool of bidders is limited.

You are always going to be fighting an uphill battle, as the industry has always been very much against written-off cars.

The biggest problem is the patchy quality of repairs and the charlatans out there. I have sadly seen too many that are dangerously rebuilt in a back-street garage on the cheap and no-one wants to risk being associated with that.

Have you considered getting them officially checked? Although this would not remove them from HPI’s condition alert register, it does mark them as ‘condition inspected’, which is a check of the quality of repair and safety (unlike a VIC test which is purely identity). This may add value and make the cars more attractive.

Andy Entwistle Why not set up a site selling the cars? Sometimes if you have to wait for others it never happens!

Might be the excuse you need to set up on your own with a showroom.

James Baggott You mention that the cars have two years to

Picture of the month With the Welsh traffic and errant sheep a constant cause of concern, Jack Evans and Jon Reay decided to take matters into their own hands on Car Dealer Magazine’s Road Test of the Year expedition recently. Armed with a high-pressure spray bottle and a microfibre towel, the pair chose to become the group’s dedicated traffic enforcement team, waving other motorists past in a bid to create a clear shot for photographer Jonny. Full coverage of this year’s RTOTY trip (we have another stunning line-up of cars this year, by the way) will appear in next month’s mag. run on their manufacturer’s warranty. Isn’t this invalidated if the car is recorded as cat D? johnhartleycars That is a grey area. When I finish a car ready for resale I take it to the dealer for a service, get the book stamped and show the repair to the damage done. All but Ford have been happy to continue the manufacturer’s warranty.

Kido I‘ve written magazine articles on cat D Porsches.

Generally they are worth 20 per cent less than equivalent non-recorded cars and can be a great buy. The interesting thing is damage to a new and high-value car will be repaired, with no record appearing in the history, whereas the same damage on an older, less valuable car results in a record, even if the car’s properly repaired.

It’s not a route I would go down, but I have heard about people exporting cat D cars as a way of losing the history.

Philip Raby You’d only ever be able to sell to private sellers at an auction, reason being no-one else will touch them! The idea of setting up your own website to sell them is a good one. Another idea might be to back it up with some kind of warranty provided

by yourself. Personally, I’d be quite happy to buy a cat D if I knew I could take it back within two years should the repair work need redoing... ttirreM_nitraM Most manufacturer’s warranties do have small print that terminates the warranty if the car is an ABI classified write-off. The idea of setting up on your own would be worth considering. I’m sure that someone like Warrantywise might be interested in chatting to you.

Andy Entwistle We’ve just had a read through this thread. We do in fact cover category D vehicles. The only thing you’ll find different to booking a warranty on one of your vehicles that isn’t cat D is that we reduce the repair limit by 25 per cent. So say the cat D car you are selling is £10,000, the maximum repair limit for that particular car would be £7,500.

Warrantywise Here @ BCA we do sell cat C and cat D but not in their own specific auctions. If you’re interested, the best thing to do would be to contact your local branch who would be able to let you know which sales have cat C and cat D in them. ttirreM_nitraM

Will you clean up if you decide to do your own valeting?

Just wondering why people pay valeting charges and for what. Seems like a big divide from north to south and massive variance on price. Thanks.

Stephen I do my own. If you invest in good-quality chemicals, buy a quality machine and rinse it after every use, in two years’ time you’ll be quids-in. Plus, you might find a pound! have a word with the wife

Often it’s time. A good valet can take a few hours. The priority of getting stock can make £30 seem like a bargain.

Mojo121

that would be an MOT fail. It saves time finding faults like that early. Each to their own. justina3

Guess it depends on how many cars you’re shifting. If you’re not getting through that many, I would do them myself. It’s a good chance to go over every little bit of the car top to toe.

I did one yesterday and both rear seatbelts were gummed up with sweets from kids so

Just find a local car wash that offers a full valet service. There is one near me that does a great job for £50 – the full works – and it really does make the car like new. They also offer a mini valet at £10 which is good value if they just need a freshen-up quickly.

Max Branning

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

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Forum: CarDealerMagazine.co.uk/forum

cat D car dealers?

Tweets of the month Top tweet This week’s #SBCarOfTheWeek is the #Peugeot 108 1.0 Active! From as little as £167 per month with a £167 deposit!

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Congratulations to all our recent 67-plate #newreg customers! We hope you’re enjoying your shiny new Volkswagens.

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We build the S90 with one purpose: to make your life easier, so you can do more important things.

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Registrations of electrics, hybrids and plug-in hybrids rose 58% in August, taking a record 5.2% of the market.

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@Whatcar named the ŠKODA Kodiaq Best Large SUV this year. Book your test drive and earn £1,000 toward yours. ŠKODA UK @SKODAUK

Beat those back to school blues with the #Toyota Land Cruiser! Great for school runs, work commutes & adventures.

Motorline Toyota @MotorlineToyota

FEEDBACK

Fussy Peugeot buyer is unhappy – so what should I do about him?

I SOLD a 2012 Peugeot 3008 recently. From the moment I took the deposit, I was regretting my decision as it turned out the customer was a right fusspot and demanding this and that.

I’ve bent over backwards for this guy, reconditioned the car to a really high standard, given him a comprehensive warranty for a year, got the wheels done and painted the tailgate after debadging it at his request took the paint off (as I told him it would).

I’ve also done his private plate transfer and refunded him the month’s tax on his part-ex that the DVLA had ‘taken from him’. I’ve also delivered it to him more than 70 miles away to save him the hassle of collecting it.

Oh, and I gave him blood for his part-ex too, a Focus CC that has now developed a fault with the roof. Anyway, as you can imagine, I didn’t make much on the sale.

He’s had it since the end of June and called me today. He says that part of the rear window heater is not working. In his words it’s because the previous dealer had their sticker on it and me removing it has broken the element.

The rest of the window clears fine and he’s only just noticed as it’s been warm weather up until now. What am I going to do about it?

I know the regulations and am aware of the 2015 Consumer Rights Act but a large part of me just wants to tell him to •••• off! It’s a near six-year-old car, the heated rear window is

working, get over it! What would you do?

Frankieola What a numpty! Dear Mr Customer, you bought a used car, not a new car. Your expectations should be reasonable and reflect its age, mileage and the price paid.

Arfur Dealy I’d call his bluff, tell him to go away and see where he goes from there – my guess is nowhere. His demister does work except for a small area of it. I think you do have another way out as I get the impression you still have his cast-off with a roof fault. Tell him to come and take back the CC. My guess is that he really won’t want it back.

BHM

JLR Newbury only weeks away....

Daksh Gupta @MarshallMotorGp

Let’s not forget all the lovely people we deal with at work!

WE tend to forget the ‘lovely people’ – these are customers who don’t gripe, accept that what we’re selling is a used product, and recommend us to other folk, which is, after all, the cheapest form of advertising. I have met some lovely people in this job, and learnt a lot from them.

Some of us actually use their services too (plumbers etc).

I have a customer who brings me a bottle of wine every visit for no reason whatsoever, other than he’s a decent bloke. In my MOT station at Christmas, you can’t move for tinned biscuits !

Let’s face it, if we didn’t have these lovely people, we would all jack it in tomorrow! have a word with the wife Aren’t they all lovely until something goes wrong? I had a ‘lovely’ gentleman buy an Astra.

A month later I get a call screaming down the phone from him telling me I’ll be hearing from his lawyer, and not to even bother trying to respond as the legal proceedings have already started.

This was all because the locking wheel nut was missing. I have had some lovely customers but unfortunately the amount of unreasonable lunatics out there nowadays outweighs the genuine customers.

Speaking of lunatics, last week a guy bought a van from me, the next day he called me demanding a refund as the van only has three seats in the front and he has two kids and a wife. He’s asking me, ‘how are they all meant to get in?’

M.J

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B

DASHBOARD. TVR GRIFFITH

VRA calls for regulation in the mileage adjustment sector. bit.ly/VRA-115

Farewell to a stalwart of the Kia brand in the UK

Wraps come off new sports car

TVR unveiled its all-new sports car the TVR Griffith at the Goodwood Revival.

The Griffith is the first new TVR to be launched since the company was resurrected in British hands. The new car has been designed to stay true to the brand’s heritage while employing cuttingedge engineering.

The exterior has been designed to be striking and aerodynamically efficient.

Embodying TVR’s longstanding ethos of the Spirit of Driving – the principle of delivering an involving driving interface where the driver will always be fully in control – the new Griffith uses intelligent engineering over electronic driver aids.

It boasts a full groundeffect aerodynamic package to ensure that the car remains stable at high speeds and handles very well.

TVR boss Les Edgar said: ‘This is unmistakably a TVR – a British muscle car that’s as awesome and brutal as it is charismatic and refined.’

RMB AUTOMOTIVE

Dealer group has much better year NORTH East-based dealer group RMB Automotive has increased its turnover to £58.5m after a ‘much improved year’.

The company – headquartered in Stockton – employs about 180 people at operations in Darlington, Middlesbrough, Teesside and Northallerton. The company sells brands such as Lexus and Dacia.

Its 2016 turnover of £58.5m was a significant improvement over the £50.1m recorded in the previous 12 months. Pre-tax profits also nearly doubled from £321,410 to £636,112.

08 | CarDealerMag.co.uk

Ian Wilson, described as one of the ‘founding fathers’ of Kia in the UK

AS one of the very first Kia people back in 1989 and with more than 45 years’ experience in the automotive industry, Ian Wilson, general manager – dealer development, has retired. In 1989, Wilson started out as a regional manager for the East Midlands with MCL Group, which owned the rights to bring Kia to the UK. With a small team around him and prototypes of the Kia Pride, Wilson was tasked with starting up the Kia brand within the country. To recruit dealers, he and his team would drive around in the cars, showing them to prospective partners.

‘If somebody had told us then how well Kia would do, we wouldn’t have believed it,’ he said. ‘In that first year in 1991, we sold just 1,786 cars – a figure we now reach every week.’ As interest in the brand grew, so did Wilson’s roles within the company from regional manager to national sales manager, with a spell in southern Ireland as executive general manager before returning to the UK to head up franchising and dealer development.

Paul Philpott, CEO and president of Kia Motors (UK) Ltd, said: ‘Ian is one of the founding fathers of the Kia family in the UK. ‘He has had a vitally important role within Kia every step of the way and we thank him for his dedication, enthusiasm and professionalism. He will be greatly missed.’

Court orders jailed prestige car VAT crook to repay £2m HMRC investigators ‘left no stone unturned’ in picking apart crook’s finances

A

jailed luxury car dealer who built a property empire with profits from a VAT scam involving Lamborghinis, Ferraris, Porsches and Mercedes has been ordered to repay £2 million.

Sarju Popat, 51, formerly of Rowlands Avenue, Pinner, Harrow, London, was jailed for five and a half years in 2015 after an investigation by HM Revenue and Customs (HMRC) revealed he had fraudulently claimed back millions of pounds of tax on car sales between 2009 and 2011.

He has now been ordered by St Albans Crown Court to repay £2 million of stolen tax after HMRC found he used his criminal cash to buy properties in Cricklewood, Hatch End and Muswell Hill.

Popat faces selling the properties within three months to repay the money he stole or stay in prison for another 10 years and still owe the money. The fraud involved him

by JOHN BOWMAN john@blackballmedia.co.uk

instructing Manoj Vyas, formerly of Bury Street, Edmonton, London, and Vyas’s brother Paresh, previously of Mayfair Court, Observer Drive, Watford, to supply a particular make and model of car. The brothers would sell the luxury second-hand car to Popat and charge VAT but not pay the full amount to HMRC. The VAT fraud allowed Popat to export the car at below market value to an associate in Malaysia.

After a six-week trial in 2015, all three men were convicted of cheating the public revenue.

Manoj Vyas was jailed for four years, while Paresh Vyas was sentenced to five years in prison.

In June this year, Manoj Vyas was ordered to repay £91,584.26 within six months or face two years in prison

and still owe the money. Paresh was ordered in June to repay a nominal sum of £1 because of a lack of assets, but HMRC can apply for a further confiscation if he comes into assets in the future.

Nicol Sheppard, acting assistant director of the Fraud Investigation Service at HMRC, said: ‘Popat is being stripped of everything his crimes bought him. We left no stone unturned in picking apart his finances and identifying his assets.

‘We will not allow tax fraudsters like Popat to keep the money they steal from the public purse.

‘Anyone with information about tax fraud can contact the HMRC Fraud Hotline on 0800 788 887.’

‘Sarju Popat is being stripped of everything his crimes bought him’ Nicol Sheppard

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DASHBOARD.

Motor Village UK unveils new website. bit.ly/MV-115

Greenyer A PERFECT PARTNERSHIP

Making the most of developments in data

M

Geoff Snow, centre, with management colleagues celebrating the group’s 50th anniversary five years ago. From left, Shawn Gates, Phil Maddison, Les Gattrell (since left), Geoff, Mark Trapani and Stephen Snow

Geoff Snow, ‘a pioneer who built a wonderful business,’ dies aged 85 Tributes paid to the founder of Snows Motor Group

T

ributes have been paid to Geoff Snow, the founder and nonexecutive director of family-run Snows Motor Group, who has died at the age of 85.

Geoff died peacefully in hospital on August 23 from a dementia-related illness.

He leaves behind his wife of 57 years, Joyce, son Stephen, who is group chairman, and daughters Jacqueline and Jenny, as well as nine grandchildren and a great-grandson.

Snows, one of the top 60 motor retailers in the UK, was originally established by Geoff 55 years ago, in 1962, as an office supplies company in Southampton before he made the transformative decision to enter the retail motor market 38 years ago.

The investment in St James’ Toyota Centre in Southampton proved a shrewd move. From Hampshire to the West Country, Snows now represents brands such as Abarth, BMW, Citroën, DS, Toyota and Volvo. The business also operates seven used-car outlets named Too Good To Auction across the south of England.

Stephen Snow said: ‘My father was a pioneer in the retail car industry here on the south coast, with an absolute belief that the customer is king. We’ve seen generations of families buy from Snows because of what Dad did – he knew the importance of making the purchasing 10 | CarDealerMag.co.uk

by DAVE BROWN @CarDealerDave process as comfortable as possible.

‘Whilst as a family we grieve, my father’s legacy very much lives on in the company name and the pioneering culture he instigated and oversaw with his trademark driving spirit.’

Granddaughter Katie Snow, group project and development manager, said: ‘Granddad has been an inspiration to me and the entire family.

‘It was a special moment when he attended our group conference earlier this year. Geoff loved being part of the business many years after retiring.’

Mark Trapani, group managing director, said: ‘Whilst we mourn the loss of Geoff, we also celebrate his life and the wonderful business he built, creating hundreds of jobs along the way and making car ownership a joy for customers over the decades.

‘Geoff was a special man in so many ways. He recognised talent and gave people opportunities to blossom. I, for one, will miss him enormously.’

Geoff, who lived in Romsey, Hampshire, retired in 2007, with son Stephen taking over as chairman of the group, which is headquartered at Snows House, Second Avenue, Millbrook, Southampton.

ost of us who work in the motor retail sector already know about the power of data. The more you know about your customer, the more you can tailor your message to appeal to them individually, which should engender loyalty and prompt them to buy. And, of course, the evolution of connected motoring means there is so much more data likely to be available in the future to help motor retailers fine-tune their message even further.

But there are some pretty big hurdles that need to be overcome to make this bigger universe of insight work for the benefit of the customer and the retailer.

First and foremost, and being discussed with ever more fevered brows, is the issue of General Data Protection Regulation (GDPR), new data protection legislation that will be implemented in May 2018.

Another area that needs to be addressed in relation to the connected motoring revolution is how the data will be protected from hackers. In July, the government issued new guidelines for manufacturers of internet-connected cars to ensure that motorists are protected from cyberhackers. But it’s not just new cars where the risk may exist.

The latest advances in motoring technology provide important benefits, giving drivers alerts about vehicle faults and servicing as well as insights into vehicle performance. However, a study commissioned by the Institute of the Motor Industry (IMI) in 2016 suggests many drivers and passengers are unaware of the security risks of today’s connected vehicles.

Fifty per cent of people surveyed by the IMI said they weren’t aware that their car was open to cyber-attacks, much like a home computer, and in fact could be controlled and stolen using wi-fi technology by anyone accessing the onboard computer systems.

Computer diagnostics are becoming commonplace in the motor industry today but the bulk of the work in servicing is still of a mechanical nature. The technological revolution in the automotive sector is shifting and broadening the skills needed by a maintenance technician to that of a systems analyst. For that reason, there needs to be clear rules of engagement for everyone involved in the manufacture, sale and servicing of the new generation of connected vehicles.

Some of this might feel like it’s quite a long way from reality. But one area that is more science fact than science fiction is the use of neural networks and machine learning.

It’s all part of the information revolution that will deliver a better experience for consumers – motor retailers’ customers.

‘Some big hurdles need to be overcome.’

Who is Darren Greenyer?

Darren Greenyer is deputy head of lending at Raphael Finance

Relax and recharge in our t y 1s r t s u d In UK

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12 | CarDealerMag.co.uk

NORTHERN IRELAND: Video technology expert CitNOW is ramping up its integration with Northern Ireland’s major national used car sales websites. The company’s innovative technology is now being used by online car advertiser UsedCarNI.com, which features around 23,000 used cars for sale. CitNOW’s web application, which allows dealers on the website to upload video of new stock in just five minutes, meaning they can start selling cars sooner, has been proven to shave up to two weeks off the amount of time stock spends on the forecourt.

The integration with UsedCarNI.com adds to CitNOW’s existing partnerships with Auto Trader and CarZone.

CitNOW increases focus on NI operation

FALKIRK: MG dealership Frasers of Falkirk is once again demonstrating its dedication to the local community by supporting two local football teams and offering fans the chance to take a new car home from a match. Frasers is the official vehicle sponsor of the Scottish Championship side Falkirk Football Club, with MG branding adorning all floodlights and four hoardings, and an MG GS or MG3 taking pride of place in the corner of the stadium. The dealership will be offering fans four chances to win a new car throughout the year. In addition, it is a proud supporter of Camelon Junior Football Club.

MG dealership is a true football supporter!

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

LANCASHIRE: A car showroom in Lancashire has been bought by a real estate investment company. According to Insider Media Limited, real estate investment trust Lxi Reit acquired the Burnley Motorpoint showroom for £5.7 million. The 10-acre site, which is just off junction nine of the M65, opened in November 2001 and can stock more than 600 new and nearly new cars. The main building houses a reception, sales area, café and offices.

There are also two other buildings that are used for vehicle preparation, repairs and valeting.

Showroom purchased in £5.7 million deal LINCOLNSHIRE: The family of a well-respected car dealer have paid tribute to him following his death at the age of 82 after a long period of illness. Byron Funnell ran an exotic car dealership, with which he shared his name, in Grimsby for more than 35 years, where he traded a variety of supercars, including a Lamborghini owned by Rod Stewart and a vehicle belonging to Barbara Windsor. Funnell was a huge car enthusiast and an avid fan of motorsport, often attending Le Mans. He earned a good reputation in the area for being hard-working and highly dedicated.

Daughter Tammy told the Grimsby Evening Telegraph: ‘He was quite a character and very adventurous.’

Dealer dies aged 82 after long illness

MOTHERWELL: Lookers has opened its second ‘Lookers Outlet’ site as it pushes ahead with the nationwide roll-out of its newest brand concept.

Lookers Outlet Motherwell sits next to the retailer’s Nissan and Hyundai dealerships in Windmillhill Street and follows the successful launch of a Lookers Outlet in Gateshead. Lookers Outlet is not a used car supermarket concept and provides customers with the same suite of aftercare provision afforded to its franchised dealership customers, including extended warranty. Colin Pybus, franchise director for Lookers’ volume division, said: ‘The introduction of Lookers Outlet to our business is a welcome one.’

Second Lookers Outlet site up and running

News from around the UK DASHBOARD.

CarDealerMag.co.uk | 13

STOKE-ON-TRENT: An employee ended up in hospital after an incident on the forecourt of Evans Halshaw Citroen in Stoke. Reports from the Stoke Sentinel state that the worker’s leg got trapped between two cars at the site in Victoria Road, Fenton, on August 15 while another employee was moving one of the cars.

The emergency services were called to the Citroen dealership and a West Midlands Ambulance Service spokesperson told the newspaper: ‘We were called to Victoria Road, Fenton, at 3.25pm and treated a man in his 30s for a leg injury. It appeared he had been involved in a collision with a car.’

Dealership employee hurt in accident

HAMPSHIRE: Snows Motor Group has signed a new sponsorship deal with Banister Park Bowling Club in Eastleigh. The Southampton-based dealer group invested in new playing kits for the team, including branded whites. The family-run dealer has been a longterm supporter of Banister Park. Joyce Snow, widow of Snows founder Geoff Snow, who passed away recently (see page 10), is a long-standing member and trustee of the club. Ashley North, president of Banister Park, said: ‘We’re grateful to Snows for its long-term sponsorship of our club, enabling players to be as immaculately turned out as the motor retailer’s cars.’

Bowls club members grateful to Snows

SWANSEA: Hutchings Motor Group has opened a state-of-the-art Hyundai showroom in Swansea. The £2.5 million development was launched in time for the firm to gear up for the September car registration plate change. Group managing director Stephen Hutchings said: ‘Following five years of successful partnership with Hyundai, we are delighted to announce the opening of this prestigious new dealership, with the finishing touches now being completed on what will be the most significant dealership opening for the Hyundai brand this year.’

Finishing touches for Hyundai showroom

LLANDUDNO: North Wales Honda is celebrating the sale of its 1,000th new car. The vehicle – a Civic 1.5 Sport – was sold to local resident David Thomas, 68, and the handover took place during the dealership’s annual summer party, with the showroom decorated with flowers, park benches and balloons for the landmark event. David Paveley, managing director of North Wales Honda, said: ‘This is a monumental moment for everyone here at North Wales Honda.’

Monumental moment for North Wales Honda

BERKSHIRE: Rolls-Royce Motor Cars and ‘global dealer of the year’ Rolls-Royce Motor Cars Sunningdale have made a charitable donation to the Teenage Cancer Trust. It came from the proceeds of the sale of rock star Roger Daltrey’s unique ‘Tommy’ car, created earlier this year as one of a number of bespoke Wraith ‘Inspired by British Music’ cars. A cheque for £208,945 was handed over in London by Daltrey to the Teenage Cancer Trust’s chairman, David Hoare. Daltrey, frontman of The Who, is honorary patron of the charity, which supports cancer patients aged 13 to 24.

‘Tommy’ car cash donated to cancer trust

LEICESTERSHIRE: Aston Barclay has announced the opening date of its new Donington Park Mega Centre: September 28. There are just a few days to go until the site hosts its first sale, with 250 used cars being entered by major fleet and finance vendors. The first car will go under the hammer at 10am. The opening of Donington Park has created 25 jobs in the local area, and centre manager Zaiga Jinkinson has been busy building a first-class team to run the flagship centre, including a new national buyer services team, while the transformation of the famous Engine Room exhibition building into a new auction space is well under way.

Date set for opening of new Mega Centre

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Now people can simply pop into a phone box to pick out a Peugeot...

Manufacturer opens world’s smallest dealership in London

by REBECCA CHAPLIN @believebecca

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eugeot has unveiled the smallest car dealership in the world… inside a London phone box.

The iconic red K6-series box, which opened for business in Russell Square on September 12, was converted into a fully connected online showroom using Peugeot’s unique e-commerce system, Order Online.

Customers gain access to the diminutive dealership via a special code. Inside, there is a tablet device connected to the e-commerce portal, where they can browse, configure, finance and ultimately order a new car.

Touted as the world’s smallest at 0.8 square metres, the dealership – dubbed Peugeot Russell Square – is open between 7am and midnight every day until the end of September.

It was established to highlight the success of Order Online, which was launched in January.

Peugeot managing director David Peel said: ‘The World’s Smallest Dealership is a perfect example of how technology continues to change the way we research, view and purchase products.

‘Not that many years ago, the process of buying a new car involved reading lots of printed literature and trawling around dealerships. Now, despite a car being the second-largest purchase most people make in a lifetime, it can be done from anywhere – even from inside a phone box.

‘We recognise that the retail landscape is ever-changing and consumers like to have the freedom and flexibility that comes with browsing online, without the pressure of having to negotiate or make snap decisions.’

At Peugeot Russell Square, customers can sit at a specially

Hidsons opens its second SsangYong showroom THE SsangYong range of 4x4s and SUVs is now available in the Kent town of Northfleet.

Family-run dealership group Hidsons is operating the SsangYong franchise from its premises at Oakwood Industrial Estate, Thames Way. It is Hidsons’ second SsangYong dealership – the company was already selling the manufacturer’s cars in Rainham, Essex.

Paul Williams, CEO of SsangYong Motor UK, said: ‘We and our dealers are focused on giving customers great service, so whether buying a new or used SsangYong, choosing accessories or 14 | CarDealerMag.co.uk

helping to maintain their car in the years ahead, we are confident customers will appreciate the car, their dealer and the brand.’

Nigel Hidson, dealer principal of Hidson’s SsangYong, added: ‘We are delighted to have been appointed to represent SsangYong and greatly look forward to playing our part in its success.

‘SsangYong has a great range, and with very competitive pricing and a five-year limitless mileage warranty on every car, we believe it will do extremely well in our area.’

SsangYong September offers, p44

Just connecting you now, madam... designed desk and look round a miniature forecourt in the form of a counter displaying 1:64-scale model cars. The dealership has been kitted out with wi-fi and an iPad to let the car buyer do everything they could at home: configure a vehicle, consider finance plans, get a part-exchange value for their existing car and book a delivery date.

The end-to-end e-commerce system also lets customers start the process online then visit a regular-sized dealership for a test drive, still giving them physical access to the cars. After testdriving the vehicle, customers can log back into the portal from anywhere and find their vehicle specification still stored.

Peugeot’s e-commerce site was the first by a major car brand to let customers complete the process of buying a new car from start to finish. Each user can create any number of different vehicle configurations, using all of Peugeot’s model range and option choices, before continuing to order or saving their profile and returning to it later.

The first order was placed via Order Online within 12 hours of it being launched. Since then, it has hosted nearly a million users who – during 1.5 million sessions – have completed more than 134,000 vehicle configurations and received more than 35,000 part-exchange valuations.

CITROEN

C Zero provides the best value THE Citroen C Zero has the lowest total cost of ownership among EVs, according to Cap HPI. The automotive data experts’ analysis of used EVs over a three-year period or 30,000 miles found the French manufacturer’s hatchback came out at £18,319 (£508.86 per month) once servicing, fuel and other motoring costs were taken into account, making it the best-value used electric vehicle currently on the market, it said.

GForces and JudgeService announce official partnership. bit.ly/partners-115

Bells Motor Group celebrates a special anniversary

REMAND HEARING

Five accused of murdering dealer

From left, Katherine Bell, Clive Bell, Keith Bell, Ginny Bell and Emma Bell NORTHAMPTON and Bedford-based Volvo dealer Bells Motor Group is celebrating 50 years with the premium brand.

The company, which was launched in September 1967 by Dennis Bell, is now headed up by his grandson Clive Bell, managing director, with sisters Emma a fellow director and

Katherine, a corporate sales director.

The group, which is located at Bedford Road in Northampton, also its head office, and at Riverfield Drive in Bedford, is planning to host a special celebration later this year.

Said Clive: ‘Volvo was still a fledgling brand in the UK in the 1960s and I am proud to say that my family

helped put these fantastic cars on the map. Our relationship with Volvo is as strong now as it was in the early days and we are delighted to continue to play our part in taking the brand from strength to strength.’

Bells is in the top 10 of the Volvo dealer network in terms of customer satisfaction.

Dealers have wrists slapped over ‘admin fees’ in adverts Auto Trader praised for taking a stand as trading standards criticise practice

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uto Trader has rapped the knuckles of dealers who mention ‘admin fees’ in adverts on its website – but fail to clarify exactly how much buyers will have to pay.

In a statement in the dealer portal section of its site, it explains that over the next few weeks, it will be removing adverts that are reported for not including any admin fee in the full vehicle price.

The company says: ‘The majority of our advertisers ensure that the full sale price of the vehicle includes all fees. However, we’ve seen an increase in advertisers referencing admin fees in the advert text without the fee being part of the full sale price.

‘Trading standards have informed us that this practice contravenes the Consumer Protection from Unfair Trading Regulations 2008 so we are taking action.

‘Within the next few weeks, we’ll

by DAVE BROWN @CarDealerDave

be removing adverts that are reported for not including the admin fee in the full vehicle price. This will make it easier for consumers to find the cars they are looking for at the price they want to pay, and for other customers that already price properly, to be represented fairly in search.’

Initial reaction from dealers seemed positive. Umesh Samani, of Specialist Cars, Stoke-on-Trent, said on Twitter: ‘Fantastic move – and about time too!’

And speaking to Car Dealer, he added: ‘It’s a very positive move, yes.

‘How can it be transparent when a customer looks at a car for £10,000, but when they get to the dealer they are asked to pay £100 more?

‘The only trouble is, how much are Auto Trader going to police this new rule?

‘But they do need to make a stand on this. It’s been going on for far too long and it’s not helping consumers.

‘As for the dealers, we’re all trying to be competitively priced with our cars but how can it be competitive when some are hiding extra charges further down the road?

‘The problem with most customers is that, as you can imagine, they have done their research, they have travelled a fair distance, most of them arrive at a dealership and just pay the £100, £200 or whatever it might be.

But it just leaves a nasty taste.’

More reaction to Auto Trader’s announcement was added on Twitter as the news spread. Cheshire Cars said: ‘Better late than never. It’s been unlawful for years.’

And Chevron Cars of East Yorkshire added: ‘Implies this was instigated by trading standards rather than Auto Trader. Or maybe I’m just a cynical motor dealer?’

FIVE men have been remanded in custody accused of murdering Lancashire car salesman Steven Weare on Barbados.

The 49-year-old director of Fylde Motor Company in Kirkham was reported missing on August 23 and his body was discovered on September 1. Weare, pictured, had been a regular visitor to the island, where his family bought a property several years ago. It is believed he imported luxury vehicles to Barbados.

He was understood to have been staying at Newcastle Plantation House in the St John area and was last seen in the car park of a Burger King restaurant in University Drive, Black Rock, near Bridgetown, in the St Michael region. His body was discovered in Melverton, St George, seven miles east of the capital, Bridgetown.

Five men were subsequently charged with his murder and appeared at Criminal Court No 2 on the island on September 13.

Sunil Decourcey Brome, 35, of Alamanda Drive, West Terrace, St James, Keino Nakito Griffith, 30, of Pounders Gap, Westbury Road, St Michael, Kristopher Darnley Michael Clarke, 26, of Oughterson, St Philip, Torio Akiro Watson, 26, of Field Road, Wildey, St Michael, and Basil Alphonso Branch, 27, of Morris Gap, Westbury Road, St Michael, were all remanded in custody to HMP Dodds on a joint charge of murdering Weare sometime between August 23 and September 1.

They did not have to enter a plea, and are due to appear in court again on Wednesday, October 11.

CarDealerMag.co.uk | 15

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Traffic jam pilot sees Audi Drivers might soon be able to take their hands off the wheel, feet off the pedals and eyes off the road with a world-first system that enables the next step of vehicle automation.

Leon Poultney reports.

P

icture the scene. You are stuck in noseto-tail traffic, the cars ahead are crawling at a snail’s pace, but you are still required by law to remain in complete control of your vehicle, avoiding distractions from smartphones and other gizmos.

But what if a carmaker offered you the chance to simply prod a button and have the car take complete control of steering and accelerator inputs while you enjoyed catching up on an episode of Game of Thrones?

This utopian future (or dystopian, depending on your standpoint) might only be a few years away, as Audi has just unveiled a new system that sees cars take over the task of driving in traffic jam situations, allowing drivers to busy themselves with other tasks.

Dubbed traffic jam pilot, the new technology is part of a suite of systems that will sit under the German marque’s Audi AI functionality. They will harness the power of advanced mid- and long-range sensors, cameras and laser scanners to build a comprehensive picture of the world around the upcoming A8 and, in turn, allow it to take over advanced driving duties.

The Society of Automotive Engineers (SAE) deems this kind of technology Level 3 Conditional Automation, which would make it the first system of its kind to be offered to customers.

Powering the entire set-up is a central driver assistance controller known as zFAS, which is roughly the size of a tablet computer and sits beneath the car’s architecture to continuously monitor signals from the sensors to create a clear and detailed picture of the car’s surroundings.

16 | CarDealerMag.co.uk

The system actively tells the driver when he or she can take full advantage of it

‘We now have a system that knows the environments that it can operate in and will actively tell the driver when he or she can take full advantage of it,’ explains Stefan Rietdorf, the Audi engineer in charge of the

development of automated driving functions.

The conditions under which traffic jam pilot are offered are fairly strict, as the vehicle must not exceed 37mph; there must be a clear safety barrier between you and oncoming traffic; and the vehicle must be certain that there are no pedestrians or other vulnerable road users in the vicinity.

‘Traffic jam pilot functionality will only be offered to the driver when it is safe to do so,’ explains Rietdorf.

‘Unlike other assisted systems, we are allowing the car to take full control of driving duties and potentially allowing the driver to get on with other tasks via the vehicle’s infotainment system.

New information received during the buying process can easily sway customers. bit.ly/info-115

approach full autonomy

The conditions in which traffic jam pilot is offered are pretty strict

‘We’ve had to work extremely hard to convince the regulators and lawmakers that the system is safe.’

Stefan Rietdorf

‘This is the key difference between what we have and what others offer.

‘We’ve had to work extremely hard to convince the regulators and lawmakers of this world that the system is safe,’ he adds.

An impressive demonstration from Audi

revealed how the technology constantly monitors the driver’s behaviour when traffic jam pilot is activated, including a camera that faces the driver to ensure he or she has eyes open and can take control if necessary.

Once activated, the technology will then physically steer the car within its lane and smoothly keep up with traffic ahead.

Should the system detect any abnormalities, such as congestion easing and traffic speeding up, it will politely ask the driver to take over.

But the key differences with this technology are its built-in safety features, such as its multiple brake and steering systems (so that if one fails the driver is still safe), and its intelligence and

self-awareness characteristics which work out whether it is safe to operate.

Should traffic jam pilot need to hand over duties, it will first give a gentle visual and audio prompt to the driver, followed by increasingly severe warnings.

Failure to take over – in the case of a medical emergency, for example – will lead to the A8 slowing down, dabbing the brakes, jolting the seat belt and finally bringing the car to a complete stop with hazard warning lights illuminated.

If there is still no response, the on-board system will automatically alert the emergency services with precise location data.

Audi expects its new technology to come to market in around two years, but stresses it requires both clarity regarding the legal parameters for each country and specific adaptation and testing of the system.

Dr Wolfgang Schmid, the man in charge of government affairs, digital mobility and renewable fuels at Audi, claims that some governmental bodies are more open to higher levels of vehicle automation, with Germany, for instance, modifying its regulations earlier this year to allow driving cars with conditional and fully automated functions ‘within the designated parameters for use’.

‘In this instance, customers would be able to perform side-tasks, such as watching a video or replying to emails via the infotainment system, when traffic jam pilot is active,’ he explains.

‘We hope that other countries will follow suit in the coming months.’

As a result, Audi will only introduce traffic jam pilot to those markets in which the legal parameters have been met.

CarDealerMag.co.uk | 17

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Going to be a busy day today at G & M Motors. 20 sets of keys going to their new owners. #67Plate #Gravesend G and M Motors @GandM_Motors

Mrs Robinson collecting her brand new #67Plate Mazda MX-5 RF from Academy General Manager David Webb.

Bolton Motorpark @Bolton_Motorprk

Mr & Mrs Brown have been down to our Sheffield site to collect their #67plate #Yaris from Bill. Happy new car day!

Burrows Toyota @BurrowsToyota

As 67 plate arrives, do people get a new car more often than a phone?

We are continuing to see the iPhonification of the automotive industry, says used car specialist

C

onsumers change their cars more often than they do their gadgets and gizmos, according to insight from automotive experts, hpi.

In recent years, the length of time motorists own a car has declined rapidly, creating a world where consumers are likely to change their car more often than they change their mobile phone, tablets or even their mattresses and bedding.

The insight comes as motorists flock to buy September’s 67-plate vehicles.

Data produced by hpi reveals that some car manufacturers now see average returns of vehicles in 18 months. The average mobile phone contract lasts 24 or 36 months meaning that some motorists may change their vehicle twice before they change their phone contract.

Ideally, a mattress should be replaced every eight years meaning that in the lifetime of one mattress, a consumer could have changed their car five times.

James Dower, used car specialist at hpi, said: ‘We are continuing to see the iPhonification of the automotive industry as consumers increasingly pay to drive rather than pay to own their cars.

‘It’s the same model as the mobile phone industry where people are comfortable paying a monthly fee – only they are now doing this with cars as well as their mobile phones.’

Dower added: ‘After buying a house, the car was traditionally the biggest outlay for most consumers, but now they are far more likely to change their car more often than their technology products or some regular household objects.

‘Changing cars with such regularity was almost

unheard of just 10 years ago. Previously it was fairly common for motorists to have their vehicles for a minimum of five years or longer but that has now changed dramatically and dropped to just two years for millions of drivers.

‘Consumer demand remains high in the used car market, and there are lots of used bargains still to be had – particularly with an active month ahead for new vehicles, with the annual September new plate introduction.’

Dealers set up their own independent ‘not-for-profit’ association A GROUP of seven car dealers and industry experts have founded the Independent Motor Dealers Association (IMDA).

The ‘not for profit’ association aims to provide a voice and support for independent motor dealers in the UK. With years of specialist knowledge and experience on hand from the founders, the IMDA will be the association representing used dealers in this fast-changing industry.

The founding members are Jim Reid, director 18 | CarDealerMag.co.uk

of Jim Reid Vehicle Sales; Umesh Samani, owner of Specialist Cars of Stoke; Phil Weaver, director at Knickerbrook Cars; Stuart Saunders, owner of Urban Car Company; Chris Roach, managing director of Auto Trade Associates; David Bilsborough, owner of Cheshire Cars, and motor trade expert Philip Nothard.

The IMDA has said it will strive to represent dealers on a national level, and work alongside other bodies. As well as this, it will be a point of reference for its members.

It is already working with a number of suppliers with the aim of providing training and support for any dealer who may require its services, and has received strong initial interest from several dealers and suppliers.

The IMDA said: ‘Independent dealers deserve the right to have an association that will represent their interests. There is an appetite for change and support via our association. We have all been working hard behind the scenes to get into place a constitution plus a mission statement with pillars which has now been achieved.’

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CarDealerMag.co.uk | 19

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Brayleys Renault is making most of rising EV demand Benefits of owning a zero-emissions electric car are clear to see, says MD

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Milton Keynes Renault dealership has reported a threefold increase in the number of buyers of 100 per cent electric models.

The rise in the number of EVs on the roads of Buckinghamshire, such as the clever hatchback Zoe and quirky Renault Twizy, reflects national demand for more environmentally friendly motoring.

And at Brayleys Renault, in Barnsdale Drive, Westcroft, demand for such cars has risen by an impressive 330 per cent year-on-year.

Figures published by the SMMT show that in the first half of 2017 pure-electric vehicle registrations increased by almost 80 per cent compared with the same period last year. One of eight national pilot projects set up by the government to

explore and encourage the take-up of electric vehicles, the Milton Keynes Plugged-In Places Scheme now consists of more than 200 charging points. A quarter of these are rapidcharging stations.

Several railway stations have also installed charging points and offer discounted parking for EVs. Paul Brayley, managing director of Brayleys Cars, said: ‘As the charging infrastructure and battery technology continues to improve, the benefits

of owning a zero-emissions electric car are clear to see, which is why our Renault dealership in Westcroft has seen significant growth in sales.

‘The Brayleys team has a wealth of knowledge on the benefits of electric car and van ownership for both retail and business customers and we expect this trend to continue, helped by the recent launch of the new Electric Vehicle Experience Centre in Milton Keynes.’

Motorists purchasing a qualifying ultra-low emission vehicle receive a government grant of £4,500, following an extension to the government’s plug-in car grant scheme to March 2018.

Our picture shows Richard Lodge, general manager of Brayley’s Renault, Milton Keynes, recharging one of the dealership’s all-electric Zoes.

AUTO TRADER

New partnership with Trustpilot AUTO Trader has signed a major partnership with global online business review company Trustpilot.

Tens of thousands of historic as well as new reviews written about UK car dealerships and the vehicles they have for sale will be made available to Auto Trader users.

The online classified advertising business said that as people increasingly moved to buying cars online, user-generated reviews were becoming more important in the automotive industry.

Karolina Edwards-Smajda, Auto Trader’s retailer and consumer product director, said: ‘This important partnership will not only further enhance the buying experience for consumers on Auto Trader, but will also help our dealer customers convert site visits to forecourt visits.’

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

20 | CarDealerMag.co.uk

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CarDealerMag.co.uk | 21

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Part 6: Selling supercars In the latest instalment of our popular series, Dan Read chats to one of the UK’s best-known supercar dealers.

I

f you’re just starting out as a car dealer, the thought of selling supercars may be a distant dream. But you might be surprised. In just over 10 years, Andrew North – co-founder of Alexanders Prestige in North Yorkshire – has gone from selling high-mileage Golfs to low-mileage Lamborghinis.

And the secret to his success, he says, applies to all dealers. Here’s what he’s learned…

How did you start out?

The day after my GCSEs – literally the day after, when all my mates went to the pub – I started at a BMW dealership as an apprentice. I worked my way up to sales manager within five or six years.

Even then I was dealing with high-net-worth individuals, so I asked them how they afforded cars like that. One said: ‘You’ll never buy one if you work for someone else. You have to work for yourself.’ I was only 25, so decided to start this journey with Alex, my business partner.

How did you get going?

We started with pretty much nothing – just a little unit, a little bit of money, but no cars. I went to the auction, bought a 150,000-mile Golf and started grafting. Then we got a small overdraft from the bank and used it to buy 10 cars within the first couple of months. We sold prestige cars, BMWs and Mercedes for example, but slightly older ones.

Was there a turning point?

It’s been a gradual evolution to be honest. We’ve had some big uplifts – especially when we got our first stocking loan, which allowed us to sell in bigger volumes and purchase higher value cars.

In year one we traded cars up to £20k, in year two up to £30k… each year it went up slightly. It wasn’t zero to hero in one hit. Those increments soon get you to high-value stuff. It’s now 12 years since we started, our turnover is £55 million and we employ 70 people.

What’s the key to achieving growth like that?

We’ve always re-invested. We used profits to buy

22 | CarDealerMag.co.uk

‘I would say to anyone starting out that you should do what you do best, and stick to it – you can never be the jack of all trades.’

ANDREW NORTH – CO-FOUNDER AND NOW MD OF ALEXANDERS PRESTIGE new stock – that’s been our growth strategy.

By doing that, banks and other funders look at you favourably. Put simply, have a good plan, and stick to it. Do what you do best and re-invest all the time – I mean, when you’re starting, re-invest everything, your whole profit margin. Be prepared to take your minimum salary drawings and take little or no dividends. Don’t take all of the cash out of your business, no matter how much you’re tempted.

You’ll need it!

Has specialising been important to you?

Specialising is of huge value. I would say to anyone starting out that you should do what you do best and stick to it – you can never be the jack of all trades. Also, I can only sell something I’m interested in and passionate about. Put me on a fruit stall and I’d be the worst market trader ever.

I didn’t just want to be a used car dealer. I wanted to deal with nice cars and nice people. It’s not about selling, it’s about treating people right and eventually the profits will come.

Are you a petrolhead, then?

Absolutely. The passion for cars has to come across. You wouldn’t run an expensive clothes shop and wear scruffy jeans to work.

We’re not just car dealers, we’re car enthusiasts.

For me that means you buy better and you sell better. And being into cars is important because people expect you to have the product knowledge. They don’t want sales patter, they want us to tell them everything they need to know about the car. I don’t need to sell someone a Lamborghini, but they need to trust us on the spec, the history and the preparation of the car. Knowledge is power, and that comes across to customers.

IN ASSOCIATION WITH

What’s your most important tool?

The website and, although it’s less tangible, our reputation. We had clients from where we worked previously who came along with us – they trusted us and believed in us and they’re still clients today. I’m all about the long term, not about making a quick buck. I’m growing a business. We can sell cars every month simply based on our reputation and repeat custom. People check you out, and research the background of the company. Also, these days people go to showrooms less, they will buy online, and that requires trust – people will put £250,000 in our bank account without even seeing the car.

Where do you source your stock?

A lot of cars just seem to find us! We have a huge database of customers we’ve known for a very long time. When it comes to supercars, some people might only keep them for six months or even less – they have to have the next big thing, so there’s a quick turnover. There are also some main dealers and manufacturers who also sell used/part-exchange stock to us.

Alexanders Prestige: ‘We deal with nice cars and nice people’

What about the business side?

Fortunately, we don’t just understand cars; we understand how to run a business. If you’re starting fresh, pay for good advice. You may understand cars and how to sell, but you’re not a lawyer or an accountant. The last thing you want to do is spend money on that, but getting good advice in year two or year three will come to fruition. If your company is set up properly from a legal perspective, with corporate governance in place, it will make life easier later.

Are supercar customers different to others?

We’d always sold prestige cars, and some customers grew with us. Often the same people who buy a Range Rover buy a Ferrari. But overall, our customers really do know what they want – that’s why product knowledge is so important.

But funnily enough, a £200k supercar may have less impact on their finances than someone spending £30k on a BMW. One thing I know is to never underestimate anyone. People who buy a Rolls-Royce don’t always wear expensive suits.

What’s been your biggest lesson?

People are the most important thing. The clients, of course, but also the people within your business. If you invest in and mentor the right people, they’ll look after you. Everyone from your valeter to your sales staff. It comes back to the point about re-investing in yourself and in others. It really is worth paying people properly and not scrimping. If clients and staff are happy then you’re half way there. We have the same philosophy in all our businesses. n The ‘Best Buys’ feature planned for this issue will appear in a future edition of Car Dealer.

CarDealerMag.co.uk | 23

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DASHBOARD.

Now there are just two months to go!

We’d love you to join us at The Brewery in London on November 27 – and here’s how to get involved

WHY YOU MUST BE THERE The prestige: The Car Dealer Used Car Awards are sponsored by Black Horse and have become THE awards ceremony for the secondhand car sector. Winning one of our trophies can give your business a terrific boost because customers will know for sure that they’ll be getting a high quality of service from you.

It’s priceless: But it doesn’t cost you a penny to enter the awards.

It’s quick and easy: You can enter online.

The class of 2016 with their trophies

W

ith summer just a memory now and the nights drawing in, the countdown to this year’s Used Car Awards is well under way.

The 2017 event looks set to be the best yet and we have already received plenty of nominations from all corners of the UK. But we want even more – and there’s still time for you to get involved!

Have you put your business forward yet in one of our many categories? Or have you chosen a dealership or individual that you think deserves some recognition?

There are more than 20 awards you can go for and winning a Used Car Award really does give a business a welcome shot in the arm.

With the clock ticking, here’s a quick reminder

of the two crucial dates you need to know: nominations and entries for the 2017 Used Car Awards close on Monday, October 16.

And the awards ceremony itself takes place on Monday, November 27.

Rebecca Chaplin, head of editorial at Blackball Media, the publishers of Car Dealer Magazine, said: ‘The Used Car Awards evening is always fantastic – it’s a great way to kick off the Christmas season while celebrating the best of the best in the used car sector.

‘Once again, the evening will be hosted by the legendary Mike Brewer, and Mike also chairs the judging panel which will be drawing up the shortlist of contenders. We can’t wait to crown another batch of winners and give them the praise and recognition they deserve.’

The variety: There are more than 20 categories in which you can vote, covering the whole industry.

The glamour: The event is held at The Brewery in London – an amazing venue in a great location that’s both small enough to give an intimate feel to the evening and large enough to host a fantastic celebration.

Networking: The awards ceremony gives you the opportunity to rub shoulders with fellow motoring professionals and to make top contacts with people from across the industry.

Entertainment: With food, drink, cocktails and a disco all part of the package, the awards night is also the ideal excuse for a Christmas party to put on expenses!

WHEN IS IT? The awards night takes place on Monday, November 27 (not the incorrect date we published last month) and will be hosted by TV’s Mr Wheeler Dealer himself, Mike Brewer.

Simply go to carawards.co.uk to fill in the online nomination form – you can enter as many categories as you like. Make sure that you give plenty of detail, though, to help our judges decide who should go on the shortlist, which will be drawn up by our judging panel, headed up by Brewer. The closing date for nominations is Monday, October 16.

You can also buy tickets for the glitzy event via the site, and we’ve got a great range of packages to suit all budgets. Alternatively, you can book tickets by calling the Car Dealer team on 023 9252 2434.

So, what are you waiting for? Get your entries in and those tickets booked! We look forward to seeing you at The Brewery on Monday, November 27.

All smiles for some more award winners

Go to carawards.co.uk to fill in the online nomination form

CarDealerMag.co.uk | 25

DASHBOARD. RETAIL BOUTIQUE

MG opens second UK concept store

JLR team’s Channel swim raises £185,000 for charity MD praises colleagues and sponsors who pitched in for Ben challenge

PEOPLE in Cardiff can add a new car to their shopping list with the launch of MG’s second UK concept store.

Based in the St David’s Dewi Sant Shopping Centre, which attracts more than 38 million visitors a year, it’s MG’s first such store outside London. The 1,610 sq ft retail boutique, which opened on September 6, features a video screen wall, interactive iPad stations and a dedicated lifestyle space.

Vehicles representing the MG3 and MG GS ranges are on display, with the MG XS to arrive by early November.

Product champions are on hand at St David’s MG to talk people through every feature of the cars. Test drives can be booked in the store, while the team also help customers arrange part-exchanges and offer information on finance.

Matthew Cheyne, head of sales and marketing for MG Motor UK, said: ‘We are delighted to partner with Nathaniel Cars in Cardiff to launch our second concept store. They have designed an environment that puts the brand at the forefront of car retailing.’

DEVELOPMENT

Jennings creating jobs as it expands A TOTAL of 24 jobs are being created in the north-east of England as Jennings Motor Group expands further.

The project will see more Kia and Mazda franchises added to its portfolio, with Jennings’ two-storey site next to Sunderland Football Club’s Stadium of Light undergoing a total refurbishment.

A date has yet to be announced for when the work will start.

26 | CarDealerMag.co.uk

T

he Jaguar Land Rover Channel Swim Challenge has raised £185,000 so far for automotive industry charity Ben, smashing the £160,000 target that had been set – and the total is likely to grow as donations and fundraising events continue.

Jeremy Hicks, the managing director of Jaguar Land Rover UK, swam the English Channel, along with 13 of his colleagues, in a twoteam relay last month. The teams set off at 10pm on August 24 and made it to French soil the next day about 2.30pm – no mean feat as the English Channel is 21 miles wide and one of the busiest shipping lanes in the world.

As part of it, Hicks also challenged his UK retailer network to raise funds for Ben by taking part in their own swim challenges in local pools, as well as the JLR Bike Challenge and JLR Run from Ben HQ in Ascot to Dover, which was due to take place on September 14.

It was all part of Ben’s second Industry Leader Challenge, which requires an industry leader to achieve a fundraising target for Ben over the course of a year.

The baton was passed to Hicks

by Daksh Gupta, chief executive of

Jeremy Hicks, left, celebrates completing the swim with other challenge participants.

Inset: The swim in progress

by REBECCA CHAPLIN @believebecca

Marshall Motor Holdings plc, and Hicks said that he chose the English Channel swimming challenge as he felt that it was something that would test him physically and mentally while also requiring an extraordinary team effort.

‘My colleagues and I who took part in the JLR Channel Swim are beyond grateful to all of our sponsors who have raised an incredible sum of money for a very worthy cause, our industry charity.

‘Swimming the Channel was an extraordinary experience and one I won’t ever forget,’ he said.

‘Training for the big swim over the past nine months has changed my life and I’m definitely going to keep swimming. Not only has it helped improve my physical health but also my mental health and well-being too. So, watch this space for my next swim challenge! Thanks to everyone who took part in the challenge and supported it.

‘We are very proud of our industry and our industry charity.’

Jools Tait, business development director at Ben, said: ‘We are in

absolute awe of Jeremy and all his Jaguar Land Rover colleagues who took part in the English Channel swim. It was certainly no easy task, as each member of the team trained for around nine months and then had to battle the cold water with no wetsuits to protect them from the elements!

‘We’re also incredibly grateful to everyone at Jaguar Land Rover who took part in the other activities, such as holding a Ben Week, cycle rides and their own swim challenges. We simply can’t thank you and all of the sponsors enough.

‘The funds raised by this epic challenge will help us to reach even more people in the industry, allowing us to provide more practical support to those who need it. Our services are funded entirely – and can only continue – through the generous support of the industry.’

sales@dragon2000.co.uk

dragon2000.co.uk

01327 222 333

CarDealerMag.co.uk | 27

DASHBOARD.

Manufacturers scrap it out in the race to boost sales and cut pollution Six million cars in the UK parc are eligible for scrappage – and the latest raft of schemes is giving a useful boost to sales, too

S

crappage fever has gripped the UK with a impressive, with consumers being able to save raft of manufacturers offering customers as much as £10,000 off the price of a new e-Golf generous financial incentives to trade in once the government’s plug-in vehicle grant has their dirty old motors and swap them been taken into account. Alison Jones, director of for cleaner, greener ones.

Volkswagen UK, said: ‘There’s never been a better The Volkswagen Group, Renault, Kia and time to step up from an older diesel into one of Toyota are among the dozen or so manufacturers our new, lower-emission range of Volkswagens.’ to have announced new schemes – and they All participating manufacturers under the VW certainly appear to be having an impact, with Group umbrella will scrap traded-in vehicles and the SMMT saying initial market reaction to the will not sell them on. Orders must be placed programmes seems to have been positive. before December 31.

Mike Hawes, SMMT chief executive, said: Toyota’s scrappage scheme is open to vehicles ‘Industry is committed to improving air quality more than seven years old and in customer across the UK and has invested billions of pounds ownership for at least six months. in new technology to produce a vast range of The Japanese manufacturer will offer savings low-emission models. of up to £4,000 on a new Toyota.

‘Recently, 13 different brands have An Auris Hybrid qualifies for savings announced a variety of incentives of £3,500, while customers will be and scrappage schemes to help offered savings of £2,500 off the price try to encourage consumers to of a new Yaris Hybrid. The scheme purchase newer lower-emission runs until the end of the year. cars which would greatly improve Renault’s scrappage scheme targets the environment.

Euro 4 vehicles registered by December ‘We understand that initial market 31, 2009, with all traded-in vehicles Mike Hawes reaction to these schemes has been being removed from public roads. positive. Over six million cars in the UK are The scheme offers customers the chance to eligible for such schemes, providing consumers benefit from savings of between £3,000 and with a great opportunity to purchase the latest £7,000, which includes a £2,000 scrappage low-emission cars.’ allowance. It doesn’t include the Twingo, Koleos, The Volkswagen Group scheme is fairly or any pure-electric vehicles such as the Zoe or typical of the programmes currently running. the Twizy, though.

It includes vehicles from Audi, Seat, Skoda, Orders must be placed by the end of Volkswagen and VW Commercial Vehicles, and September, with cars registered by January 1. targets diesel-powered Euro 1 to Euro 4 vehicles.

Kia is offering motorists the chance to trade in Customers are being offered monetary their vehicle in exchange for £2,000 off the price incentives to switch to cleaner Euro 6 petrol or of a new Rio or Picanto. diesel, plug-in hybrid, or all-electric vehicles.

To qualify, vehicles must be more than seven Volkswagen’s incentives are particularly years old, and will be destroyed upon trade-in.

Details of the old vehicle owner and the new Kia buyer must match to claim the incentive.

The scheme runs until the end of December.

Elsewhere in the industry, carmakers such as Citroen, DS, Peugeot and Suzuki have also thrown their weight behind the scrappage movement – and Nissan has revealed its ‘Switch Scheme’.

While cars traded in will not necessarily Mike Hawes

‘Initial market reaction to these schemes has been positive.’

28 | CarDealerMag.co.uk

be scrapped, customers will still be offered incentives of up to £5,000 off a new Nissan model and savings of up to £2,000 to buy a used allelectric Leaf 24kWh. Vehicles registered before the end of 2009 with a pre-Euro 5 engine qualify for the scheme, which runs until September 30.

Announcing details of Ford’s programme, which offers people trading in older cars meeting certain criteria discounts of up to £7,000 on newer, cleaner models, Andy Barratt, chairman and managing director of Ford of Britain, said: ‘Ford shares society’s concerns over air quality.

‘Removing generations of the most polluting vehicles will have the most immediate positive effect on air quality, and this Ford scrappage scheme aims to do just that.’

James Baggott, p98

Listers adds Volvo to its portfolio as it expands in Worcester. bit.ly/Listers-115

‘We are committed to improving efficiency and lowering emissions.’

Tony Whitehorn

Scotland may see petrol and diesel-only cars start to vanish by 2032 NICOLA Sturgeon has outlined plans to phase out new petrol and diesel cars eight years earlier in Scotland than the UK government wants to do.

Scotland’s First Minister made the announcement as she unveiled the Scottish government’s legislative programme.

Sturgeon said she wanted new petrol and diesel cars to be phased out in Scotland from 2032 – eight years sooner than the 2040 target for a ban set by the UK government.

She told MSPs that over the coming months ministers would set out ‘detailed plans to massively expand the number of electric charging points in rural, urban and domestic settings’.

Scottish Green co-convenor Patrick Harvie said: ‘The phase-out of new petrol Nicola and diesel cars and vans by 2032 is a good Sturgeon aim but we need a clear commitment.’

RAC spokesman Nicholas Lyes said: ‘The Scottish government’s announcement is admirable, but how quickly this transition can be achieved will depend on the infrastructure being able to facilitate such a mass switch to electric and other alternative fuel solutions.

‘It’s worth remembering that the UK government has said it will ban the sale of new petrol and diesel vehicles by 2040, whereas the Scottish government appears to be setting itself a target only – albeit an ambitious and commendable one.’

No fraud strategy – we follow the rules, says PSA

SAFETY FIRST PLUS BETTER EQUIPMENT ANNOUNCING Hyundai’s scrappage scheme, company boss Tony Whitehorn made the point that not only are the new cars heading out on to the roads cleaner and greener, they’re safer and better equipped too.

Hyundai’s programme offers up to £5,000 off the price of a new model.

The scheme targets older and more polluting vehicles with Euro 1-4 emissions standards, and those registered before December 31, 2009.

Those with Euro 1-3 emissions standard will be scrapped, while owners of a Euro 4 model do not have to scrap their car and can trade in their vehicle.

Whitehorn, left, president and CEO of Hyundai Motor UK, said: ‘We are committed to improving efficiency and lowering emissions. There are thousands of older cars on our roads that could be replaced with cleaner – not to mention better-equipped and safer – alternatives.’

PSA GROUP has denied ‘any fraud strategy’ after reports that nearly two million of its vehicles were fitted with emissions test-cheating software.

In a statement, the carmaker said: ‘Groupe PSA reaffirms that it complies with regulations in every country where it operates, and its vehicles have never been equipped with software or systems making it possible to detect compliance tests and to activate a pollutant treatment device that would be inactive during customer use.’

The response followed reports that an internal PSA document being examined by DGCCRF – the French watchdog in charge of investigating the company for alleged emissions cheating – mentions a possible ‘defeat device’.

The group says that it ‘has repeatedly explained its strategy regarding engine settings’, one that’s ‘based on its customers’ use in real life’.

This strategy ‘favours low nitrogen oxide (NOx) emissions in cities while ensuring the best NOx/ CO2 balance on open roads’.

CarDealerMag.co.uk | 29

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DASHBOARD. NISSAN

New Leaf will be built in Sunderland

Delighted dealer ‘all shook up’ as he wins dream trip to Las Vegas. bit.ly/Vegas-115

Mike Brewer works with Ben as first celebrity ambassador Used Car Awards host will help raise awareness of vital organisation

B

NISSAN has confirmed that the new Leaf will be built at its factory in Sunderland.

The electric vehicle will also be produced at sites in Smyrna, Tennessee, and at Oppama in Japan.

Work will start on the new model by the end of this year.

Fumiaki Matsumoto, executive vice-president of manufacturing and supply chain management operations at Nissan, said: ‘We’re proud to continue manufacturing the Nissan Leaf at three plants globally.

‘The Nissan Leaf is the icon of Nissan Intelligent Mobility with its many advanced technologies. Nissan employees in Oppama, Smyrna and Sunderland are excited to continue producing the most popular electric vehicle in the world.’

The new vehicle features greatly improved range, recording a distance of 235 miles on a single charge during official testing. Its predecessor’s quoted range was 155 miles in top-spec guise. The EV will also benefit from Nissan Intelligent Driving technology.

SAFETY

Five-star rating for Jeep Compass THE new Jeep Compass has attained the maximum fivestar EuroNCAP rating.

The manufacturer’s latest model incorporates the latest technology from the iconic brand and scored positive ratings in all categories – including adult protection, child protection, pedestrian protection and driving assistance safety systems.

The new compact SUV combines Jeep’s well-known off-road capabilities with user-friendly technology.

en, the not-for-profit organisation that partners with the automotive industry to provide support for life to its people, has announced that Mike Brewer has become its first celebrity ambassador.

Brewer is renowned in the industry for his role as presenter of the popular TV show, Wheeler Dealers, and also has the responsibility of presenting the Car Dealer Used Car Awards every year.

This is an official voluntary partnership role at Ben and will be crucial in further strengthening the charity’s important work with the automotive industry. Moving forward, the organisation sees Ben celebrity ambassadors as integral to raising awareness about Ben within the industry.

In partnership with celebrity supporters, Ben hopes to reach new audiences and make even more people aware of the life-changing support they can access. Ben also believes that the role of celebrity supporters will help the charity meet its fundraising targets so it can continue providing its free and confidential health and wellbeing support services.

Brewer has supported Ben for many years and his most recent involvement in the inaugural Hats on 4 Mental Health Day campaign in 2016 helped raise over £13,000. With Brewer’s help, Ben galvanised the industry to come together to raise awareness about mental health challenges.

by REBECCA CHAPLIN @believebecca Zara Ross, chief executive at Ben, said: ‘We’re absolutely thrilled to welcome Mike Brewer as a Ben celebrity ambassador and we are extremely grateful for his support.

‘We strongly believe that with Mike’s help, we can continue to make a difference to people in our industry and raise awareness to new audiences who may not have heard of Ben before.

‘We’re also really excited that Mike is going to be heavily involved again in helping us to promote Hats on 4 Mental Health Day 2017 which is a crucial campaign, raising awareness about such an important cause. We believe that the celebrity support we received for last year’s event directly contributed to its success.

‘So, stay tuned for more news about this year’s Hats on 4 Mental Health Day – we will be revealing the details very soon!

‘We look forward to working more closely with Mike over the coming year and believe this new partnership will help us take our awareness to the next level.’

Brewer said: ‘I’m delighted to become a Ben Celebrity Ambassador as I greatly admire and value the organisation’s important work in our industry – it is a lifeline for so many people. I’m also really pleased to be supporting Ben’s Hats on 4 Mental Health Day campaign again this year.’

Mike Brewer

Dealer Auction delighted to reach major milestone ONLINE trade auction site Dealer Auction has surpassed lifetime vehicle sales of £1 billion in July.

The platform, which launched in 2010 and is owned by Cox Automotive, was designed specifically to simplify the trade-to-trade sales process, while offering trade-ins to the largest possible audience of carefully vetted trade buyers.

Today, the system has an audience of nearly 1,500 franchised centres and over 4,500 independent dealers nationwide who are able to bid and buy cars that would never have been available to them historically.

Further success milestones for Dealer Auction include platform integration with its Cox Automotive sister brands NextGear and Movex.

Most recently, Dealer Auction has integrated with Motors.co.uk to deliver several key benefits to dealers including effectively reducing the auction-to-forecourt time lag from seven days to less than a minute.

Operations director Kieran TeeBoon said: ‘It is great to have reached this terrific milestone. We look forward to our next phase, and our next billion.’

CarDealerMag.co.uk | 31

Make sure you’re properly covered.

Then you can focus on moving your business forward.

It’s good business sense.

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32 | CarDealerMag.co.uk

DASHBOARD.

Forget change or die... how about changing and going for a win?

T

here’s no denying that a huge shift in the automotive industry is happening right beneath our feet at the moment. It’s been the talk of the motoring media, as one by one, manufacturers have begun announcing their plans to go ‘electrified’.

It was Volvo who first had the genius PR idea to proclaim that it would be offering electric, or at least mild hybrid, versions of every car in its range. That was, of course, much to the annoyance of Lexus who have been very comfortably on this bandwagon for years.

It soon became more of an obligation for car makers to announce that, in a few decades’ time at least, they would offer the same thing. Much like we saw with the scrappage schemes, which began rolling out in August.

It seems if you’re not in, you’re definitely out in the mind of the consumer.

As if electric and hybrid cars weren’t confusing or daunting enough for members of the public, potential car buyers are now being told that these are all they’ll be able to buy – at least if they glance at any mainstream media.

Then, if you’re ready to swap out of your currently polluting car, why not scrap it at your local dealer? That is if it’s the right brand, age, Euro engine classification, and you hop on one leg to the correct showroom.

I’m not about to flog this dead horse, it’s been covered enough, but it’s easy to see how this could cause confusion for buyers.

Everyone appears to be doing the same thing, but in very different ways if you study the fine print.

As the news broke of manufacturers adding new engine options to their models and when they would be doing that, many headlines referred to brands becoming ‘electrified’, which could be easily misconstrued.

It seems we’re coining new phrases such as ‘electrified’ and ‘hybridised’ to dumb down what’s going on. Who knew, all this time our engines were ‘petrolised’ and ‘dieselised’? The process of coming up with these words involves taking the engine type and combining it with the word ‘patronised’ in the hope that consumers won’t realise that you’re not quite sure what you’re talking about.

More seriously, some mainstream media said these manufacturers were ‘going electric’. It’s true, but it’s not quite accurate, and I’m sure many people woke up to the news and assumed petrol and diesel were over.

I mean, if the manufacturers themselves

Rebecca

had decided to ‘go electric’ then it must really be bad news for traditional fuels.

In reality, that couldn’t be further from the truth. The engines in the vehicles that are on sale today will continue to be used until cheaper and more efficient options become available to carmakers.

Jaguar Land Rover says it has no plans to take its Ingenium diesel engine off sale, despite the announcement that it would be offering an electric or hybrid version of every model.

While the mainstream news outlets were reporting one thing, the motoring media was rebutting this with claims that this was nothing but extreme PR. Somewhere in the middle, it feels like everyone is missing something huge.

We dismiss quite regularly, the enormity of effort that goes into developing a new car or powertrain. Whether it’s actually the most Earth-friendly or not, electricity has

Chaplin ‘Somehow it feels like THE VIEW FROM BEHIND THE SCENES

everyone is missing something huge...’

clearly been chosen as the future of getting us from A to B. The biggest carmakers in the world have adopted this and surely that means it’ll be a difficult thing to shake?

Maybe not, as more than anything this proves what a versatile industry we are in.

This month we have seen that even a brand steeped in history linked to the power and performance of its petrol engines can turn to electric power.

I’m talking about Jaguar and its electric-powered E-Type.

Here is a car that is not only beloved because of its style and performance, but because of its engine note.

It may have lost the sound, but the carmaker managed to make it faster and lighter, so maybe there’s hope for electric cars yet in the eyes of motoring purists.

Jaguar has to be applauded because, with this history in mind, not only did it release an SUV last year, with a baby version revealed this year and an electric version on the way, but now it’s aiming to offer electric motors to every car it makes more quickly than any other manufacturer is boasting that it can do. They say you need to change or die but given JLR’s sales figures, I’d say change and win is a better way of looking at it.

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 | 33

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34 | CarDealerMag.co.uk

DASHBOARD.

Around the world Dealer news from somewhere other than here

GERMANY

VOLKSWAGEN has reached the milestone of manufacturing 150m vehicles. The landmark car, a blue Golf GTE, rolled off the assembly line at VW’s Wolfsburg plant towards the end of August. Herbert Diess, chief executive of the Volkswagen brand, addressed the team at the factory, saying: ‘We have made the dream of owning a car come true 150 million times for customers all over the world.’

CANADA

A CUSTOMER who baulked at paying $200 to have an immobiliser removed from his car was shocked to find the device had been activated by his dealership, rendering the vehicle undriveable.

The immobiliser was in place so that it could be activated if the buyer, Daniel Lallier, of Bury, Quebec, missed a finance payment, but once the car had been paid for, the dealership, Kia Sherbrooke, wanted it back – for a fee, which was waived after the row.

SOUTH AFRICA

NEW car sales are on the up in South Africa. Domestic sales of new vehicles rose by 4.1 per cent year-on-year in July, according to figures released by the National Association of Automobile Manufacturers. A total of 46,719 units were sold that month, but the association said growth was likely to be constrained in the months ahead.

INDIA

CHINA

SALES of Peugeot and Citroen cars are on the wane in China – with the Chinese arm of the PSA Group having to reduce its sales targets for 2017. The joint venture set an ambitious goal of 700,000 units at the beginning of the year, reported the China Daily website. But the sales volume of Peugeot tumbled 36.7 per cent to 102,199 units in the first half of the year and Citroen’s sales dropped 63.2 per cent to 45,630 units. Industry observers claim the ‘romantic designs’ of PSA Group cars are a bit of a turnoff for Chinese buyers, who prefer the styling of cars from German and American manufacturers.

HONDA wants to sell more cars in India. The car market is dominated by Suzuki and Hyundai, with the former having a market share of more than 50 per cent. Honda, on the other hand, has just a five per cent portion. Shinji Aoyama, chief officer (Asia & Oceania) of Honda, wants the firm’s car and bike businesses to work in tandem to boost car sales, as happens elsewhere.

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

CarDealerMag.co.uk | 35

DASHBOARD. Land Rover Discovery SVX

Frankfurt gives us a glimpse of a genuinely fascinating future

The Discovery SVX is the latest product to come out of Special Vehicle Operations – Jaguar Land Rover’s in-house skunkworks.

The hardcore 4x4 uses a 5.0-litre supercharged V8 that develops 518bhp and 625Nm of torque, and its underpinnings have been fettled to improve its off-road abilities.

by REBECCA CHAPLIN @believebecca

W

ith the theme ‘Future Now’ at the Frankfurt Motor Show this year, the range of dazzling tech wasn’t going to disappoint.

This included groundbreaking new hybrid and electric technologies such as the Honda Urban EV Concept and its CR-V Hybrid prototype – and fascinating offerings such as BMW’s i Vision Dynamics.

The star of the show for many was, unsurprisingly, the Mercedes Project One Formula One-engined road car.

It’s given the brand an opportunity to capitalise on the racing development it does but also adds a hybrid supercar to its range – something that others have already achieved.

While almost all 275 of the Project Ones are expected to have been sold already, Mercedes had a concept for the people too – the fully electric EQA hatchback concept.

By and large, electric cars stole the headlines at Frankfurt, but there were still plenty of traditionally powered vehicles on show.

During the many interviews I carried out at Frankfurt (see my reports on the following pages), it’s clear to see the direction in which the major players are travelling. It seems noone has ruled out producing an electric car, they’re just waiting for more demand from the market or a change in legislation.

You wouldn’t expect anything less from one of the maddest European motor shows, where classic and quirky can sit alongside future sales smashers.

Read on to find out more . . .

Mercedes EQA

The EQA Concept signals the start of Mercedes’ electric car onslaught and will be one of 10 EVs the maker plans to have on sale by 2022. It is set to be the biggest seller in the Mercedes EQ electric line-up, with an expected price tag of under £36k.

Showstoppers This year’s Frankfurt Motor Show featured a bumper crop of innovative new releases.

Picking the best ones is a tough job, but here are our 10 favourites.

AUDI New RS4 Avant makes its public debut p38 36 | CarDealerMag.co.uk

Mercedes-AMG Project One

If you think electric or hybrid cars are boring, think again! This is the Mercedes-AMG Project One, which features the same drivetrain as that used in the firm’s Formula 1 cars. It produces 992bhp, has a top speed of 217mph and can hit 124mph in just six seconds. The price? A cool £2 million. And they’ve all but sold out!

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Mini Electric

Built in Britain and guaranteeing 4,500 jobs at the firm’s Oxford plant, the Mini Electric is the BMW Group’s big gamble on an emissions-free future.

So far, few details of the technical specification of the Mini have been released, but expect it to share much of the technology with the BMW i3.

Volkswagen ID Crozz

Ignore the ridiculous name, this is VW’s crossover electric car concept that’s set to spearhead the maker’s foray into EVs. Called the ID Crozz, the high-riding SUV-style car will be one of 23 allelectric vehicles arriving from the VW Group by 2025 as it invests £5.4 billion in AFVs.

Honda Urban EV Concept

This funky little number is Honda’s vision of inner-city electric mobility. What makes it stand out is that compared with most EV concepts it’s relatively understated. Enthusiasts of Japanese cars will see hints of the original Civic hatchback and other small Hondas of the past.

Porsche 911 Touring Package

Porsche’s 911 GT3 Touring Package blends supercar performance with discreet styling.

It does away with the large fixed wing of the standard GT3 but retains the base car’s naturally aspirated 4.0-litre engine. Taking just under four seconds to hit 60mph it’ll keep pulling all the way to 196mph. The cost is £111,802 before options.

BMW i Vision Dynamics

BMW has released an electric saloon concept that previews a forthcoming i5 saloon and will slot neatly between the i3 hatch and i8 sports car.

The i Vision Dynamics is a four-door Gran Coupe concept that BMW claims has a range of 373 miles, a top speed of more than 120mph and a 0-60mph time of 3.8 seconds.

Smart Vision EQ

The tiny Smart car has become a staple commuter choice in clogged-up cities, thanks to its compact dimensions and brilliant turning circle. Now commuters of the future will be able to look forward to a fully autonomous option with zero emissions if Smart gives its Vision EQ concept the green light.

Audi R8 RWS

Since the Audi R8 was introduced back in 2007, the supercar has seen many versions. One has been absent, though – a rear-wheel-drive model. Not any more! It features the current car’s 5.2-litre V10 engine, producing 533bhp and 540Nm of torque, but all that power is now sent to the rear wheels. Only 999 will be built, however, so if you want one, act fast.

MASERATI Things are looking better than ever for luxury Italian marque p40

CHERY Chinese brand sets its sights on European markets p41 CarDealerMag.co.uk | 37

DASHBOARD. ‘Cee’d is the centrepiece of our brand.’

Paul Philpott

Kia’s Proceed Concept attracted admiring glances in Frankfurt

We’re Proceeding rather nicely!

KIA: There’s plenty for dealers to get excited about with a lot of new products on the way

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ia took the wraps off its striking Proceed Concept at Frankfurt.

Making its debut alongside the new Stonic, Picanto X-Line and Sorento, the concept shows a possible future direction for the cee’d range.

Although the Proceed Concept is no more than a design idea at the moment, Paul Philpott, the CEO and president of Kia Motors UK, hinted that the final model would look similar as long as the response at the show was positive.

For dealers, it adds another layer of exciting and sporty products to whet car buyers’ appetites.

Philpott said; ‘Cee’d is the centrepiece of our brand, it’s European-produced, it’s European-only.

‘The Proceed is very much a design concept that indicates the route we’re following. When you see it, you think, ‘‘That’s a new look for a C-segment car.’’ It’s what the new Cee’d generation needs to evolve and I think it evolves in a very positive direction. The early reaction we’ve had is very encouraging.’

Stonic, the brand’s new crossover, also made its public debut on the stand. With demand from car buyers for more cars offering exactly what Stonic has the ability to deliver, Kia has high hopes for the car, but even those could be exceeded.

Philpott explained: ‘Our initial plan sees us selling 10,000 cars a year, but we think it could be as high as 15,000.

‘We’ve already indicated to manufacturing that this car is going to be very well received, but in its first year we have to do the right things with a new model for us.

‘We must target retail customers, fleet buyers, establish it in those markets and progressively grow it, so getting a really strong residual value for it is really important.

‘The fact we’ve got heritage helps. When we launched Sportage, it grew from 20,000 a year to 40,000 a year, but we also grew our Sorento volume. I know Sorento sits above it, but I think a new product helps cement our credentials as an SUV player, and when we’ve got Stonic, Sportage

and Sorento, our job is to make sure we attract new customers and not ones who would have bought a different car of ours.’

With Stinger also on the Frankfurt stand and about to be launched, there’s plenty for dealers to get excited about – and sales figures reflect that.

‘Our dealers are with us,’ said Philpott. ‘They are confident about the future of Kia. ‘We will continue to work closely with dealers to make sure the new products drive new customers and further profit for them.

‘The network has invested for us and we’ve got some outstanding dealers out there who are confident that we’ll continue to grow.’

Kia has high hopes for Stonic

AUDI: Order books open later this month for the all-new RS4 Avant

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udi’s all-new RS4 Avant made its public debut at the Frankfurt Motor Show.

Powered by a turbocharged 2.9-litre petrol engine with 444bhp and 600Nm, it’s more powerful than the previous naturally aspirated RS4. Prices for the new RS4 start at £61,625, and orders open later this month.

Thanks to its turbocharged V6 engine, the RS4 can hit 60mph in four seconds, and is electronically limited to a top speed of 155mph

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– though this can be increased to 174mph by specifying the optional RS dynamic package.

Despite this performance, Audi claims that the RS4 will return up to 32.1mpg and emit 199g/km CO2. The new RS4 also weighs 80 kilograms less than the car it replaces.

Power is sent to all four wheels via an eightspeed automatic gearbox. All UK cars come with a sports differential, which splits torque between the rear wheels for better handling.

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RENAULT SPORT: ‘Truly exceptional driving enjoyment’ on the way for buyers

Sales are buoyant in a declining market SEAT: I’ll take sales from anyone – I’m not picky, says MD

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enault Sport revealed its new Megane RS hot hatchback at the 2017 Frankfurt Motor Show.

Power comes from a new 1.8-litre, turbocharged four-cylinder engine that produces 276bhp and 390Nm of torque.

While no specific performance figures have been released as yet, Renault said that the Megane RS would be able to complete the 0-60mph dash in under six seconds and that it would be ‘firmly amongst the class’s front-runners in terms of peak torque’.

The French manufacturer has equipped the new Megane RS with its 4Control four-wheel steering system, which is designed to provide greater agility and stability when cornering at high speeds.

Customers will be able to choose between either a six-speed manual gearbox or a six-speed dual-clutch automatic transmission. Two chassis options are also available – Sport and Cup – with the latter featuring a limited-slip differential as standard.

An even more powerful Trophy version of the Megane RS will be available by the end of 2018, which will produce 296bhp and 400Nm of torque.

Patrice Ratti, general manager of Renault Sport Cars, said: ‘Performance is the chief reason our customers cite for purchasing the Megane RS, and the all-new Megane RS takes the styling and technologies even further to deliver truly exceptional driving enjoyment.

‘Our intention is to see the all-new Megane RS, with its chassis and 4Control, remain the C-segment hot hatch benchmark.’ The new Megane RS will go on sale in the UK in spring 2018.

No pricing information has been revealed yet, but it is likely it will cost less than £30,000.

t’s been a transformational time for Seat, a brand that’s enjoying buoyant sales despite a declining market.

With three new models and its two bestselling cars updated for 2017, it’s easy to see why the manufacturer’s dealers are so pleased.

UK managing director Richard Harrison told Car Dealer: ‘The market is down 2.4 per cent, but up to August we’re up 21.3 per cent. I think that says it all. I’m very happy to have the new product, the buzz and the level of investment and energy in the brand at a time when the market itself seems to be finding life a little bit tougher.

‘It’s why we’re happy but not immune, making sure we’re very professional in the way we bring cars to market. We’re very targeted in what we try to achieve. You may see from the outside that times are good, but that means we work harder to get more things right first time in the way that we run the business and the way we go to market.’

Ateca has been a huge success story for Seat and Arona is expect to make a similar splash when it reaches the UK, but are Harrison and his team facing any challenges at the moment?

‘I think we’re in a growing phase and we’ve got lots of new toys, so one of the interesting challenges is making sure we make the most of every new product. We’ve only just launched Ateca and now we’ve got Arona, which is going to come to market in the next few months. I think that’s probably the nicest challenge in my career in the automotive industry.

‘In certain areas, demand is exceeding even our aspirations, which is a really nice challenge to have. We’re having to balance expectations in terms of supply and demand. The dealers

are fully with us. The dealer network is really profitable, the most profitable it’s ever been.

‘The relationship with the dealers is excellent now. That means that we’re all aligned and we’re pursuing the growth plan and it’s working.

There are growing pains but nothing I have any problems with.

‘We’ve got a few remaining open dealership points to fill. I think the interesting thing from my franchise team’s perspective is that they’re having quite a few people knock on the door right now. I expect to have most of the open points filled within the next six to nine months, but we’re not going to massively ramp up the number of dealers, because I don’t see the need.’

The new product has been keeping customers happy too, both existing and conquest.

‘Our conquest customer numbers are up more than 20 per cent,’ Harrison told us. ‘The existing customer base is enjoying having different cars to buy and our loyalty rate is improving.

‘Historically, people coming out of a Leon and wanting more space didn’t have a car to go to in the range unless they wanted an Alhambra, whereas now they’ve got Ateca.

‘Customers are coming to us from across the range of other manufacturers, from pure volume to premium. My dealers feed that back to me through the trade-ins that they get and they’ve had some really interesting trade-ins of premium cars that I wasn’t expecting, which is great. I’m happy. I’ll take sales from anyone. I’m not picky.’

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DASHBOARD. SUZUKI: New Swift Sport makes its debut – it’s ‘lighter, faster and more stimulating’

Seven colours are available for the new car

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uzuki’s new Swift Sport made its global debut at the Frankfurt Motor Show.

The Japanese hot hatch features a more powerful engine and has a reduced overall weight. Under the bonnet is Suzuki’s 1.4-litre Boosterjet petrol engine, which also sees action in the Vitara S, developing 138bhp and 230Nm of torque.

This is equipped with a six-speed manual gearbox, taken from the previous Swift Sport.

Thanks to the Swift’s ‘Heartect’ platform and design enhancements of some of the car’s components, the hot hatch weighs 970kg – 80kg lighter than the outgoing car.

As is typical for the Sport, there are more aggressive styling features.

Muscular bumpers are present, as well as a rear wing and dual exhaust tips, while 17-inch wheels complete the look.

Seven colours are available — including Champion Yellow, which mimics the base colour of Suzuki’s recent factory rally cars.

There are bucket seats for the driver and passenger, as well as a flat-base steering wheel, a boost gauge and cool aluminiumlook pedals.

As for equipment, the Swift Sport features a seven-inch touchscreen infotainment system with Bluetooth connectivity, as well as support for Android Auto and Apple CarPlay.

Masao Kobori, Suzuki chief engineer, said: ‘We’ve made the new Swift Sport lighter, faster and more stimulating in every way.’

UK pricing and availability have yet to be revealed.

Maserati GranTurismo 40 | CarDealerMag.co.uk

The Maserati Levante: ‘Great sounds and great driving dynamics’

Demand and desire are as strong as ever MASERATI: Half of luxury marque’s sales are Levante SUVs

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s Maserati celebrates a 90 per cent increase in sales globally, at more than 100 years old things are looking better than ever for the luxury Italian brand.

Speaking at the Frankfurt Motor Show, CEO Reid Bigland explained: ‘We’re on a record sales pace over the more-than-100-year period of Maserati. Our first six months of sales this year were up 90 per cent over the same period in 2016 – and we are a brand that is never really out to win any sales crown. It is nice to see the demand and desire for Maserati is as strong as ever.

‘The 2018 model year will see us recap the interventions we have made to our entire vehicle portfolio. There’s not a product we made that will be left untouched.

‘It’s that commitment to continue this improvement and the fact that we look to make our products better and better every year that I think has been one of the keys to our success.

‘Last year and this year it was China. Sales in China are up 125 per cent.

North America is the second strongest market, specifically the USA. Europe is strong as well.

‘We launched

the Levante first in the Chinese market, in around August 2016. We then started to launch it in other markets such as Europe and the US. Australia’s still waiting.’

As the manufacturer’s first SUV, Levante has played a huge part in its success, and demand continues to grow. Other models, such as Maserati’s highly acclaimed GranTurismo fourseat coupé, are doing their bit too.

‘Levante now represents 50 per cent of our sales,’ said Bigland. ‘It’s been a significant shot in the arm for Maserati – it reflects the continuous technological improvements in our product and the fact that we invest in incremental segments.

The SUV segment is hot.

‘When we think about the Levante in Maserati terms, it’s a vehicle that has all of the great sounds and driving dynamics of a Maserati car wrapped up in an SUV package. That’s why the Levante is doing so well. Buyers get 350bhp or 430bhp and a great engine sound.’

With sales climbing, would Maserati ever cap production to ensure continued exclusivity?

‘I think the limit is somewhat self-regulating. I think there is a natural limit in that not everyone can get to our price points. That’s a self-container.

‘However, I think there are a number of segments out there where we don’t have an offering where we could expand our sales without diluting the exclusivity of Maserati.’

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Fuel-cell technology is the goal but electricity comes first HONDA: Taking things one step at a time, famous Japanese brand has had a good, but challenging, year

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onda wowed the crowds at Frankfurt with two new models equipped with revolutionary powertrains.

The Honda Urban EV Concept is an all-electric city car with plenty of additions for an autonomous age.

The CR-V Hybrid Prototype also adds a whole new world of possibilities. The crossover is powered completely by its electric motor but this is recharged with a petrol engine.

In terms of large hybrids, it is expected to be unrivalled for efficiency. With a four-wheel-drive offering in the works too, it has a lot of potential.

The hydrogen-powered Clarity says a lot about Honda’s direction of travel. However, when we spoke to managing director David Hodgetts and head of cars Phil Webb at the motor show, they said that while fuel-cell was the end goal, electric cars were necessary for us to get there.

‘Fuel cell is very much still our main aim, but there is a lot of work to do in terms of infrastructure and costings,’ said Webb.

For Honda dealers, electrification is still something to be excited about, he said.

‘It represents a great opportunity for Europe, and it starts next year with the CR-V Hybrid.

‘That’s great for us and gives us an opportunity to look at different types of customers. We have a very loyal dealer network, so we haven’t made many changes and we don’t

envisage many changes coming forward.

‘I think it gives us the opportunity to speak to extra customers, too. Our customer base is already extremely loyal but yes, with new powertrains, it gives you the chance to reach out and speak to other customers, without a doubt.’

Hodgetts added: ‘The other side of the boat is that the car is actually a bit different to the petrol version. Once figures start coming through for the hybrid version, it will be particularly attractive, perhaps more so than the diesel. But I think we will be one of the few manufacturers offering a new hybrid powertrain in a relatively large SUV.’ The Honda Urban EV Concept will be turned into a car for the roads in 2019.

Although there have been mixed responses to the design, many hope it will stay largely the same and it will occupy an important position at the forefront of Honda’s electrification strategy.

While the latest figures from the SMMT seem to reflect a flagging market, Honda has

The Urban EV Concept has had mixed reactions largely avoided this thanks to the new Civic.

Its Swindon plant is the only one producing the popular model globally – and bearing in mind Civic enjoys huge sales in America, the manufacturer is insulated to a large extent from any possible traumas looming between the UK and continental Europe post-Brexit.

Webb said: ‘We have been lucky to have that car as it’s not just a new Civic, it’s a new Honda and our dealers have really embraced it.

‘We’ve followed it with the Type R and now with the new Civic diesel, so it’s been a good year.

We are where we expected to be.

‘Yes, it has been an overall challenge. What happened in March, April and May especially was tough for our network and it was tough for us, but I’m pleased to say we’ve recovered.’

Honda’s CR-V Hybrid Prototype

‘Fuel cell is very much still our main aim.’

Phil Webb

CHERY: Chinese brand is on its way to Europe, promising cars for all sorts of segments

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hinese automaker Chery pulled the covers off a pre-production version of its new Exeed TX at the 2017 Frankfurt Motor Show.

The compact SUV (pictured at the bottom of page 37) will be the first Chery vehicle to go on sale in Europe. A plug-in hybrid (PHEV) will be the first variant, to be followed by regular hybrid and pure-electric versions.

The Exeed TX PHEV draws its power from a 1.5-litre petrol engine and an electric motor.

Together, they give the SUV a power output

of 262bhp and will enable the Exeed TX to accelerate from 0-60mph in 5.8 seconds before hitting a top speed of 124mph.

It also features an all-electric range of 43 miles when travelling at 75mph. The battery can fastcharge to 80 per cent capacity in 30 minutes, and will reach a full charge from a 220V household supply in four hours. Combined fuel economy stands at 157mpg, according to NEDC standards.

Chery also promises generous levels of standard equipment. This includes a 10-inch touchscreen

infotainment system with smartphone connectivity, wi-fi hotspot and voice recognition.

Chery CEO Anning Chen said: ‘In just a few years we intend to start selling a family of vehicles in European markets across multiple segments, with power supplied by a range of electrified powertrains. Our brand will target open-minded, relatively young customers in particular, with a product roll-out strategy that focuses on quality, low- and zero-emission powertrains and emotional engagement.’ [CD] CarDealerMag.co.uk | 41

FINANCE. CREDIT

Payment plan taken up by 850th dealer

Dacia offers continue on orders before October Free, five-year extended warranty is standard on most new models

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o-nonsense car brand Dacia is continuing its range of great-value finance offers.

A free five-year extended warranty is standard on all new Dacias, excluding Access versions, bought through the RCI Dacia Dimensions Scheme on a four-year PCP or HP deal. The offer spans the full, recently updated range of awardwinning Dacia models, ensuring drivers can own a new hatchback, estate, compact crossover or SUV for a lot less than they may have thought.

It applies to orders placed by September 30, 2017 for cars registered until December 31, 2017. The free five-year warranty, usually costing up to £395 as an upgrade, replaces the standard three-year warranty.

Attracting a deposit contribution of £1,000 for diesel versions and £500 for petrol models, the rugged and Car Dealer Advert Horizontal 2.pdf award-winning Duster, refreshed for 2 C

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by JOHN BOWMAN john@blackballmedia.co.uk

2017, is a highly tempting proposition for savvy SUV buyers. Bought through a four-year Dacia Dimensions PCP package, the Duster in Ambiance 1.6 16V 115 specification is available from £149 per month once customers have put down a deposit of £1,780.

Recently announced as one of the UK’s most affordable cars to own and run, and What Car? magazine’s ‘Best Small Car for less than £12,000’ for the fifth consecutive year in 2017, the neatly packaged Sandero is now even more accessible.

Via the four-year Dacia Dimensions PCP deal on the Ambiance SCe 75 model, the practical five-door hatchback can be bought for as little as £89 per month with a customer 01/03/2017 deposit13:37:03 of £1,485.

Drivers wanting a small crossover will want to check out the latest Sandero Stepway offers. Available with a £600 deposit contribution for diesel versions when bought on a four-year Dacia Dimensions PCP deal and £400 on petrol versions, the popular crossover costs from £99 per month with a deposit of £2,370 for the Ambiance TCe 90 version.

Equally big on space as it is on value, the Logan MCV comes with a £400 deposit contribution when bought on a four-year Dacia Dimensions PCP deal. With a £2,078 deposit, customers can experience the model’s versatility and spacious interior from £99 per month.

Dacia has sold more than 100,000 vehicles in the UK since it was launched here in 2013, with more than 4.5 million Dacias sold since the brand was relaunched by Groupe Renault in Europe in 2004.

AUTO Service Finance’s aftersales payment service has been rolled out at its 850th UK dealership.

Over the past 18 months, the financial technology start-up’s payment plan has been installed in franchised dealerships for brands such as Jaguar Land Rover, Peugeot, Citroën, Ford and Vauxhall, aiming to give consumers greater flexibility while driving revenue in aftersales departments.

Dealership groups Motorline and Cambria have also now expanded the availability of Auto Service Finance.

It lets customers split aftersales payments over three interest-free monthly instalments, with dealerships paying a transaction fee on the total purchase amount.

Credit awarded to customers has now exceeded £6 million, doubling in under six months as more people use the payment method.

Jack Allman, cochief executive at Auto Service Finance, said: ‘The growing number of dealerships rolling out our payment method is really encouraging, and shows that there is a gap in the market for this kind of funding solution.

‘Dealerships are able to sell more work in their service departments and demonstrate a degree of flexibility, which is always appreciated by customers.’

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A simple idea that goes a long way to retain customers W

e drove down to London over the August bank holiday to break in my fiancée’s newly purchased used car. However, we were a little nervous compared with our previous visit.

The last time we had made this journey we were travelling down to our friends for an evening meal.

It was planned to start at 7pm, and as we knew there were quite a few 50mph zones en route on the M1 we left with plenty of time to spare.

The long journey was just coming to an end when ‘The Beast’ started to lose power. What a nightmare!

We were in a diesel 4x4 that had recently had a service and the diesel particulate filter replaced, so this wasn’t

‘The part-exchange amounts being offered were vastly different’ what we were expecting. We pulled up at our friends’ house a couple of minutes later and went inside thinking ‘Hopefully it’ll be fine in the morning’.

No such luck, as the next morning we were greeted by the light of death. Yep, you guessed it: the engine management light had come on.

There was no power, so we had to call the insurance company, with whom we had roadside assistance.

A few hours later the roadside assistance turned up to tell us that the turbo had gone and they couldn’t do anything about it.

And so we spent another night at our friends’ while awaiting a recovery truck.

The next day we spent more than four hours and more than £300 travelling home in a cramped cabin.

Ben

Garside TIME IS MONEY

After a few weeks and a few grand ‘The Beast’ was back on the road, but we weren’t happy. We needed to trade it in, as we were no longer towing my fiancée’s horse trailer so didn’t really need a 4x4, and we also didn’t want any further parts and labour costs.

Now here’s where it got really interesting...

The part-exchange amounts we were being offered were so vastly different in value.

These included a bang-on Glass’s Guide value and one that was just 50 per cent of the amount, while another dealer we visited offered us double the amount that we had been expecting.

The dealer we eventually went with offered us not only a great price but also an amazing long-term package.

The package is based on the dealer wanting their

Turn over page for more finance stories customers to feel good and comfortable in their used car and it comes with all of his vehicles.

What’s the package, I hear you say? Free labour forever!

This comes on all vehicles purchased from the dealer.

So any buyer who has a problem with the dealer’s vehicle after the sale can take the vehicle back and have it fixed just for the price of the parts.

The dealer told me that he offered this to gain customers multiple times through great service and a long-term relationship.

It’s a great idea that has certainly worked with us and will no doubt do so for many others as well.

After all, what more could a customer want? A dealer who wants customers to return and if something goes wrong on the car they only need to pay for parts. A simple idea but oh so effective!

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 | 43

DEALFINDER.

FINANCE. YOUR ESSENTIAL GUIDE TO . . . SMALL CROSSOVERS RENAULT CAPTUR

AUDI Q2 AS THE smallest SUV in the Audi line-up, the Q2 is a design combination of a coupe and an SUV – the very definition of a crossover. With off-roading capabilities and urban styling, it’s an interesting premium choice in the small crossover market.

At Audi Centres, the Q2 can be offered in Sport trim with metallic paint and quattro all-wheel drive for £309 per month on a 48-month contract, following a £4,583.26 deposit.

Following the initial fee, customers pay 47 monthly payments of £309, which totals £19,106.26 at the end of the four-year term.

If they choose to hold on to the vehicle, they will need to pay the optional final sum of £15,604.70, taking the overall cost of the contract to £34,710.96, which is £4,830.96 more than the standard on-the-road price.

The offer is based on 10,000 miles per annum.

A STYLISH crossover with an easy-to-use interior, the Captur has been updated this year with an altered exterior design. It’s a goodvalue option in a bloated market that is constantly growing, and it’s cheap to run with either a petrol or diesel engine.

Renault retailers can offer the Captur in the Signature X Nav trim for £233 per month after a £2,495 deposit, along with a £2,200 deposit contribution from Renault.

Customers are then required to pay 47 monthly instalments of £233, which, including the deposit, totals £13,446 at the end of the agreement. To hold on to the vehicle, they must pay a final sum of £6,507. This takes the overall amount paid by the driver to £19,953, which is £102 less than the standard road price, so is a good offer to push forward. The agreement is based on a 10,000-miles-peryear limit with a 4.9 per cent fixed rate of interest.

SsangYong sets out series of PCP deals for this September Chief exec hails latest offers on Tivoli, Korando and Turismo

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sangYong has introduced a range of PCP deals for September on its Tivoli petrol, Korando petrol and diesel SUVs, and on the capacious seven-seater Turismo.

The petrol-powered Tivoli SE is available with a deposit of £199 and PCP payments of £199 per month for 35 months, the Korando petrol with a £239 deposit and £239 per month for 47 months, and the Turismo with a deposit of £299 and £299 per month for 47 months.

Paul Williams, chief executive of SsangYong Motor UK, said: ‘We have some great-value cars which are already temptingly available at very low prices, and now even more affordable with these special finance offers.

‘Every SsangYong is better equipped than its

by DAVE BROWN @CarDealerDave

competitor, and comes with ‘‘peace of mind’’ as standard, thanks to the five-year limitless mileage warranty no other brand can match.’

The Tivoli, pictured, offers a comprehensive specification and small crossover sector-leading prices from just £13,300. There are three trim levels of the contemporary B-segment SUV: SE, EX, ELX, with the choice of 1.6-litre petrol or diesel Euro 6 engines, six-speed manual, six-speed Aisin automatic transmission, front-wheel drive or intelligent 4x4.

Prices for the compact crossover Korando

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start at £15,800. Designed for Europe in Italy by Giorgetto Giugiaro of Italdesign, it offers a highly contemporary look and the choice of 2.0-litre petrol or 2.2-litre Euro 6 diesel engines.

The Turismo gives users an MPV to transport seven adults with their luggage.

At more than five metres long with a threemetre wheelbase, the vehicle is larger than a standard-sized MPV people carrier. It has a choice of six-speed manual transmission or MercedesBenz seven-speed automatic, with prices starting at £19,750. The ELX has an impressive two-tonne towing capability and selectable 4x4 with low ratio as standard, making it especially practical for towing or driving off road.

All offers end on September 30, 2017.

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

IN ASSOCIATION WITH

MAZDA CX-3 THE Mazda CX-3 is a model that flies under the radar but should be near the top of many people’s lists. It’s practical, dynamic and comfortable, as well as being stylish and a good family option.

Dealers can offer the CX-3 In GT Sport spec with metallic paint for £309 per month on a 37-month agreement. The deposit for this offer is set at £3,076.25, with a Mazda contribution of £1,500.

After paying 36 monthly packets, the cost including deposit by the end of the agreement would be £14,200.25. The optional final payment, if the customer chooses to take up permanent ownership, would be £8,806, taking the overall cost of the contract to £23,006.25 – just £111.25 more than the on-the-road price. With great driving feel and excellent practicality, the CX-3 has plenty to offer customers and should be promoted with its performance in mind. The agreement is based on a 2.01 per cent fixed rate of interest and 9,000 miles per annum.

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FLA

FIGURES

New car finance business falls by seven per cent but used sees increase

Average dealer ‘lost nearly £7,000 in July’

NEW figures from the Finance and Leasing Association show point-of-sale consumer new car finance business volumes fell by seven per cent in July against the same month in 2016, while the value of new business was up by three per cent.

The percentage of private new car sales financed by association members through the point of sale held steady at 86 per cent in the 12 months to July.

The point-of-sale consumer used car finance market reported new business in July up 17 per cent by value and 10 per cent by volume compared with 2016.

FLA head of research and chief economist Geraldine Kilkelly said: ‘The fall is consistent with recent trends in private new car registrations, and FLA members’ penetration of this market remains stable.

‘While the recently announced scrappage schemes may provide some boost to private new car sales in the coming months, the industry expects point-of-sale consumer car finance new business volumes to be broadly stable in 2017 overall.’

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THE average UK motor dealer suffered losses of just under £7,000 for the month of July – marginally worse than the same month last year. This was to be expected, given the lower registration levels reported for the month and the lack of ‘fast start’ activity from many brands.

The figures came from profitability specialists ASE. which added: ‘In the month of July we saw continued growth in used car retail sales from dealerships, with margins taking a slight dip compared to June. Return on investment on used cars remains healthy at 88.5 per cent – a significant improvement over the position at the start of the year.

‘Aftersales revenues continue to grow, and for the past couple of months we appear to have stemmed the decline in the retail labour percentage of total hours.’

CarDealerMag.co.uk | 45

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

Is simplicity king in today’s complex car buying journey We all know that the automotive retail market it a fast evolving one. You don’t need me to tell you that almost every aspect of the sector has changed dramatically in recent years. Dealers tell me on a daily basis that keeping pace with change, whether that be the latest piece of technology, a new channel to market or the changing demands and needs of car buyers is one of their biggest struggles.

To help understand what impact these changes are having on the car buying journey, and, ultimately, on dealers, we commissioned our most comprehensive study into the consumer car buying journey to date.

The six-month study, tracked every element of the buying process, from conversations with friends and online browsing behaviours, through to social media engagement and dealer forecourt visits. The result? The most accurate look at the modern car buying journey and a clear picture of the challenges and opportunities facing today’s automotive retail sector.

We’ve packaged up the findings into the Auto Trader Car Buyers Report. In it we explore the six key stages - Contemplate; Triggers; Consideration; Preferences; Decision; and Buying - of the car buying journey, the challenges buyers encounter at each, and look at the implications of what has become an automotive game of snakes and ladders – a non-linear process that, for many car buyers, has become complicated, challenging and stressful.

What did you find out?

First and foremost, we discovered that the car buying journey has, for many, become a daunting process. So much so that 85% of car buyers entering the process expect it to be time consuming and difficult. Not something they look forward to. What’s more, the study, which tracked every element of the car buying process, revealed that even late into the journey, a piece of new information (e.g. car advertisement, peer recommendation etc.) can result in sending a car buyer back to the beginning. The modern car buyer nowadays doesn’t know when to

end the journey, when to stop looking and decide this is the car for me.

Many were flipping between new/used, make/model and even car type throughout and were considering an average of three cars, even at the point of purchase. This highlights the lack of loyalty amongst car buyers as well as the fact that consumers do not enter the market looking for a new or used car, but rather their next car and open to influence throughout.

85% of consumers entering the process expect it to be time consuming and difficult We also found that car buyers have a limited amount of mental effort they’re prepared to invest, and the fatigue created by the current process resulted in as many as 60% giving up their search for their ideal car and making a purchase simply out of exhaustion. This was even more prevalent with younger buyers: 75% of 17-24 year olds stated they were ‘tired of looking around’. Worryingly, 85% of car buyers don’t think the car they had purchased was their ‘perfect car’. Even after they’d purchased their car they still thought that “there was something better out there”.

So what does this mean for me?

Well, the study tells us that there are a lot of opportunities for dealers. Clearly car buyers are looking for a more straightforward journey. Simplifying the process, the options and offers available will be an impactful way of enticing

fatigued car buyers. This might include avoiding complicated car jargon, demonstrating payment options and the true cost of car ownership up front, or managing the options thrown at them through personalisation. Tell your potential customers how easy it is to buy from you, and how quickly they can drive away their next car.

What’s more the frequent flipping between new or used, make and model highlights how effective a targeted digital marketing strategy could be, not only in retaining loyal customers, but also attracting new ones, even when they are nearly at the point of purchase.

It’s clear there is a huge amount of uncertainty amongst consumers, which means the need for trust is greater than ever. This can be achieved by offering a fully transparent customer experience - unbiased, and independent reviews. And not forgetting the basics of vehicle videos and strong imagery with great descriptions that represent the true condition of your stock, coupled with a choice of cars that are in tune with the local market that are transparently and accurately priced.

Where can I download the report?

To read the findings in full, and to discover the opportunities available for dealers and manufacturers, download the Car Buyers Report for free, today:

https://trade.autotrader.co.uk/ car-buyers-report

For the latest news, views and insight for the automotive retail community, follow @ATInsight on Twitter and LinkedIn 46 | CarDealerMag.co.uk

BIG MIKE.

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

What do horseboxes, vegans and TV experts have in common?

I

f you read my column last month, you’ll have noticed that it was my 100th contribution to Car Dealer. This, then, is my 101st, so what better way to approach it than to tell you the three things that I’d put into Room 101?

I am, by nature, a grumpy old man, so the list is endless.

As such, I’ll leave out things like people who put the toilet paper on the holder the wrong way round, those stupid wall-mounted all-in-one soap/washer/hand drier thingies you get in public conveniences, and vegans. Though where that lot are concerned, I’m tempted to leave them in.

Instead, I’ll concentrate on motoring-themed annoyances, the first and foremost of which isn’t related to the trade. The other two are.

But let me get this one off my chest first.

Mobile horseboxes. Honestly, what is the blooming point of a means of transport that is designed to carry another means of transport, but only at the speed at which the inferior means of transport is ever prepared to travel?

I get far more annoyed stuck behind a horsebox than I do when I’m held up by a mobile crane or a caravan.

At least they have no other means of getting where they need to go. Horsey people (and if you can’t tell, I’m not one myself) will tell you that they have to drive ridiculously slowly so as not to upset the gee-gee.

In my book, the horse would have been rather upset in the first place by being chucked into the back of a clapped-out old Leyland Roadrunner and tethered into a claustrophobic space in which it could barely stand up.

Do you see dog owners driving everywhere at 15mph?

No. No, you don’t.

But a dog is the same as a horse in my book – a fourlegged animal that craps a lot – but it doesn’t need to be driven like Miss Daisy everywhere it goes.

And, if the horsebox is so badly designed that Black Beauty falls over and clobbers her bonce every time you circumnavigate a roundabout, it’s a ridiculously inefficient means of transport. If you want to enjoy your horse, just ride the blessed thing from Point A to Point B and give the rest of us a break. I know a lot of you will disagree with me, but I don’t care – it feels good to get it off my chest.

And now onto number two on my list, the first of the pair that relate entirely to the motor trade: Price guides.

By that, I don’t mean CAP or Glass’s Guide. I learned my trade by the mantra ‘buy at CAP and

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

sell at Glass’s’, and besides, these hallowed publications (or websites, as they are now) rarely end up in the hands of the great unwashed.

I won’t name the culprits, but I’m talking about the raggy old things you get in the newsagent’s, which have a double negative effect on a trader’s business.

The first is to tell folk what the ideal forecourt price is, so their default position is to walk onto the lot and try to knock you down, or worse, go to the auction and bid you out of contention.

I used to sell Fiats from a main dealer forecourt, and I can tell you that these stupid booklets never took into account the value of a cambelt replacement job on a 20v Coupe – around £800 at main dealer prices.

Buyers who’d done their homework were happy to pay more for the peace of mind and the dealer warranty, but all these Herberts have ever wanted is to drive you down

‘Do you see dog owners driving everywhere at 15mph? No, you don’t’ on price to a level where you can’t even feed your family.

All because certain publications tell them it’s poppycock.

And that’s before I’ve even taken into account the vastly over-inflated value these guides give them on their part-exchanges.

And finally, and I’ll be gutted if I can’t get this one into Room 101, television experts.

For years, greasy-haired (where they have hair) TV pundits have doled out their sage advice to gullible viewers telling them how to beat the system.

I’m talking about the wicked witch of Watchdog and her ilk who never tire of telling the world car dealers are scum. But all they manage to do is give certain self-righteous idiots the self-belief to walk onto forecourts like mine and try to tell us we’re not allowed to make a profit.

Mike Brewer, on the other hand? He’s a proper Wheeler Dealer and he knows how the game works.

Listen to him, kids, and not the ones who think they know the dirty end of the motor trade, but have never done a day’s work in it…

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 | 47

FORECOURT.

Lexus LC 500h

Luxury Incredibly comfortable seats make long journeys a breeze.

Clever tech Multi-stage hybrid transmission uses four traditional gears with CVT ‘step’ gears in each to mimic a 10-speed transmission.

Appearance When it comes to styling, there’s no debate to be had – the LC 500 is stunning.

Darren put the car to the test to see if it really can snare the conquest buyers Lexus is What is it?

The LC is a large luxury coupe designed to be the new flagship of the Lexus range. To the Japanese car manufacturer’s credit, it has forged its own path with the development of this car to make something fairly unique.

Lexus considers the likes of the Porsche 911 and BMW 6-Series as attracting similar types of customers, but in the words of chief engineer Koji Sato, ‘we focused on emotional value rather than specs’ so direct comparisons can be tricky – to the LC’s benefit, we hasten to add.

Apart from the two engine options which we’ll come to in a moment, most of the major talking points of the LC are totally new. For a start, the 48 | CarDealerMag.co.uk

chassis it’s built on gets its first outing and will also underpin the LS luxury saloon, while the suspension system took six months to perfect.

However, the big story here is the multi-stage hybrid transmission, which uses a mix of traditional automatic technology and the continuously variable transmission (CVT) often used in hybrid vehicles.

The idea is that you get the flexibility of an eco-friendly CVT and the performance-oriented capabilities of an ‘old school’ auto in one 10-speed transmission. The reality is that it takes a lot of getting used to.

What’s under the bonnet?

A 3.5-litre petrol V6 is nestling in the engine bay. It’s mated to a lithium-ion battery, and together they provide an output of 472bhp. What’s more impressive for a car of this size is that it’ll return a claimed 44mpg.

In spirited driving on high-speed German autobahns and Austrian mountain passes, we managed a respectable 25mpg, so with a more relaxed approach, mid-30s should be manageable.

A 471bhp 5.0-litre V8 version is also available, which uses much more fuel but makes a fantastic noise and is a delight to rev out.

Darren Cassey spoke to Ewan Shepherd, the director of Toyota’s Lexus Division in the UK You’ve mentioned ‘conquest’ customers a few times recently – which manufacturers are you seeing customers coming to Lexus from?

I think the majority of the market comes from BMW, Audi and Mercedes, but we see our primary focus as people on the edge of that, so potentially Jaguar and Volvo as well as people stepping up from the volume market.

About 57 per cent of our customers are conquest, but we are trying to get better at retaining customers through PCP finance offers like everyone else is.

But, if we are going to grow, we’ve got to target 60 per cent conquest as a whole, though it varies by model.

You mentioned controlling the dealer order programme. Could you expand on that?

What has historically happened is that we’ve allowed dealers to place their own demo orders, and we’ve also had spoof orders come in for them to have cars around to sell, so they order too many and sell them at a lower price to shift them, which isn’t good for the brand.

We’ve had a look at what cars are being ordered for customers, primarily though because we want the customers to have the car they want, not the car which is being sold to them aggressively because it’s in stock. That’s the main reason.

Secondly, we’ve now taken control of demonstrators. We’re not actually letting dealers own the demos, we are leasing them to the dealers through our contract hire business and we will take the residual risk and therefore control the way the car is sold in

the marketplace. We’ll drip-feed LCs into the market to avoid a race to the bottom, which has affected cars such as the RC F in the past.

It’s hard to pinpoint comparisons with the LC 500 – do you see any specific rivals?

No, not really. It is a bit of a unique proposition as it’s got all the comfort you would ever want from a proper grand tourer, but a lot of the performance is like a sports car. For the price particularly – a £76,000 entry price – it is quite a unique proposition for this segment. We’ve not really come in to target anybody, we’ve come in to say that this is a Lexus which is slightly different and we want people to try it.

To have the V8 and the hybrid at the same price is quite a rare thing to see.

What was the thinking behind that?

We thought it through and there is a bit of difference in price for us but we didn’t want it to be a price decision for customers, we wanted it to be a true driver’s decision. We’ve got 65 per cent of our annual allocations sold on week three, so it can’t be that bad! And sales are split almost 50/50 between the two, too.

THE KNOWLEDGE Model: Lexus LC 500h Sport Price (as tested): £80,595 Engine: 3.5-litre V6 petrol and electric motor Power (bhp): 472bhp Torque (Nm): 648Nm Max speed (mph): 155mph 0-60mph: 4.5 secs MPG (combined): 43.5 Emissions (g/km): 148g/km TARGET BUYERS: Lexus expects most of its buyers to be over 50 with a household income above £150,000.

THE RIVALS: Difficult to say but Lexus is hoping to attract drivers of cars such as the Porsche 911 and BMW 6-Series.

KEY SELLING POINTS: 1. Hybrid running costs.

2. Concept car styling.

3. Relaxing over long distances.

DEAL CLINCHER: Concept car styling and low running costs are a winning combination.

so keen to attract What’s it like to drive?

On the open road, the LC 500h is a sublime cruiser. With exceptionally comfortable seats and a ride that makes even rough roads feel silky smooth, there are few cars that can do longdistance schleps in such a relaxing manner.

What’s just as impressive is how it handles a winding back road. For a circa-two-tonne car to be quite so fleet-footed is marvellous. Naturally, it responds better when you find a smooth rhythm rather than chuck it into corners, but it settles into direction changes with admirable aplomb.

What’s the spec like?

Three trim levels are available: Luxury, Sport and

Sport+. Interestingly, Lexus has made the pricing identical whether you opt for the V8 or hybrid powertrain because it wants customers to buy the one they want, not the one they can afford.

Luxury-spec cars, which start at £76,595, get a suite of safety technologies as standard, premiumfeeling leather upholstery and a 10.25inch display with in-built navigation. The Sport package costs £5,000 extra and adds 21-inch alloy wheels, Alcantara upholstery and a carbon-fibre roof. Opt for the top-spec Sport+ package from £85,895 and buyers get upgraded handling kit and rear-steer technology.

What do the press say?

Top Gear said buyers should ignore the hybrid and go for the V8, while Autocar said the divisive styling shouldn’t detract from what is a highly entertaining car.

What do we think?

It’s easy to fall in love with the Lexus LC 500h. Those looking for a sportier drive would be better suited going for the V8 because the hybrid’s transmission and engine note get in the way of enjoyment. However, as a luxury GT car the LC is exceptional. It’s comfortable, composed and classy.

CarDealerMag.co.uk | 49

FORECOURT.

Volkswagen Polo Product manager Dirk Weinerowski tells why the new model is important for the manufacturer What does the new Polo mean for Volkswagen?

It’s one of the most important cars and, volumewise, the second most-important car, just behind the Golf. It’s really successful – the Polo has been out for more than 40 years and has sold more than 14 million cars, with 14 million happy customers who are expecting the new Polo now and we’re happy to present them with it.

What are you most proud of on the new Polo?

For me specifically it’s the infotainment display, which brings the car into the digital age, so that’s the most important part. But of course the Polo in general is a really great car. There’s a lot more space in the interior and it looks phenomenal and much younger as there are many more brighter

colours – the Energetic Orange looks really great.

There’s much more variety and you can choose far more colours for the interior. We have made a lot more innovations there, but in general we are really proud of the new car.

Would you say this new model is more focused on giving more of a vibrant impression of the Polo compared with old models?

Yes, exactly. One of our main goals was to make the new Polo more attractive for younger customers. They want something which looks sportier, has fresher colours and gets all the innovations – which we have brought down from cars of a higher class to make it more accessible for the customer.

The outgoing Ford Fiesta was the best-selling car in the UK for a long time. Do you see the new Polo challenging the new Fiesta sales-wise?

Yes, of course. I’d like to be first in the segment in Europe, but I know in the UK that it’s quite difficult, but volume-wise in Europe our goal is to be number one in the sector.

Volkswagen has had a bit of an electrification push lately with the Passat GTE, e-Golf and Golf GTE. Will the Polo receive the same treatment?

At the moment there is nothing planned for the Polo. We’ve got the e-Golf, e-Up, Golf GTE and Passat GTE right now, and plans for an all-new electric car in the next two years.

THE KNOWLEDGE Model: Polo Beats Price (as tested): N/A Engine: 1.0-litre TSI Power (bhp): 94 Torque (Nm): 175 Max speed (mph): 116 0-60mph: 10.6 seconds MPG (combined): 64 Emissions (g/km): 101 TARGET BUYERS: Second-time car buyers or deep-pocketed new drivers.

THE RIVALS: Ford Fiesta, Seat Ibiza, Vauxhall Corsa.

KEY SELLING POINTS:

Ryan Hirons wonders if the new Polo can claim the supermini crown What is it?

The new Volkswagen Polo has been built on a new architecture for the model — VW Group’s MQB A0 platform. Thanks to a longer wheelbase, the Polo has a more brash stance. The new platform also means a more spacious car, with luggage space up from 280 litres to 351 litres.

What’s under the bonnet?

Several engine options are on offer, including a 1.0-litre TSI with 94bhp, which we drove. There’s also a 1.0-litre MPI engine available with 64bhp or 74bhp. Two 1.6-litre diesel 50 | CarDealerMag.co.uk

engines will be added to the range, producing 79bhp and 94bhp.

What’s the spec like?

Prices have yet to be announced, so it’s hard to judge how much bang you’re getting for your buck.

However, the Polo is generously equipped, regardless of the chosen trim level. The Beats version we tested came with 16-inch alloy wheels, partial leather interior, full colour infotainment system with Bluetooth connectivity, rear tinted windows, body decal stripes and the main attraction of the Beats version: a 300-watt sound system.

What’s it like to drive?

The Polo excels at city driving.

Light steering, great visibility and loads of safety features make cruising around urban areas a dream, and the powertrain easily took everything thrown at it. Sadly, it began to unravel a little over longer periods of driving. It’s not an unpleasant experience spending more than an hour in the car, but the lack of seat support is soon noticed.

What do the press think?

What Car? said: ‘Volkswagen has succeeded in making the new Polo comfortable, good to drive, quiet on

1. Premium feel throughout.

2. Spacious.

3. 300-watt sound system.

DEAL CLINCHERS: Premium supermini, with class-leading practicality. the move and classier to spend time in than all of its rivals’. Car Magazine said: ‘It’s good, but it’s not yet great.’

What do we think?

The new Polo is sensational for a little urban runabout, but although it’s certainly capable of longer distances it could grow tiresome for anything more than a couple of hours. VW will no doubt sell many when it lands in the UK but can it challenge the Fiesta for the supermini crown? Time will tell…

CarDealerMag.co.uk | 51

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52 | CarDealerMag.co.uk

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CarDealerMag.co.uk | 53

FEATURE. CELEBRATING

50 YEARS OF

AMG Its name is synonymous with high performance and now it’s celebrating its golden jubilee. Jack Evans looks at the history and heritage of this hugely successful marque 54 | CarDealerMag.co.uk

B

ack in 1967, AMG Motorenbau und Entwicklungsgesellschaft (or AMG Engine Production and Development for our nonGerman-speaking readers) was founded by former Mercedes engineers Hans Werner Aufrecht and Erhald Melcher. The three letters were made up of the two founders’ second names, along with Großaspach – Aufrecht’s town of birth. Both worked at the Daimler-Benz development department.

When Mercedes pulled out from all forms of racing in 1965, Aufrecht decided to take a 300SE and tune it – with the car soon winning two rounds of the 1965 German Touring Car Championship.

In 1966, Aufrecht left Mercedes and he and Melcher founded their own business designing and testing racing engines. It was in 1971 that an AMG Mercedes 300 SEL 6.8 won second place in the 24 Hours of Spa – a mammoth victory for a car with such humble origins.

In 1976, the company moved to the sleepy town of Affalterbach, and it soon became a key modifier of Mercedes-Benz vehicles after its initial role of designing and producing race engines. At this time, Aufrecht and Melcher were joined by just a handful of employees.

It offered customers something different, though – and something a lot quicker.

Buyers could pick from a variety of modifications such as engine tunes, alloy wheels and bodystyle upgrades to make their Mercedes-Benz look – and drive – a little sharper.

A key car of this era – and one with arguably the biggest cult following – was based on the W124 E-Class and came to be affectionately known as ‘The Hammer’. It became the world’s fastest passenger saloon car when it was released in 1986, thanks to a 5.6-litre V8 under the bonnet. A world first, its engine featured an independent cylinder head with four valves per cylinder. It could hit 60mph in just five seconds and would reach a top speed of 183mph – performance CarDealerMag.co.uk | 55

FEATURE. Bookends of AMG: Driving the 190E and the AMG GT R

I

n terms of mechanics, there couldn’t be two more different cars than the 190E and the AMG GT R. The first produces around 234bhp from a 3.2-litre engine, while the latter 577bhp from a turbocharged 4.0-litre V8.

How are things in the present day? Pretty good going, if the GT R is anything to go by. Utilising the 4.0-litre V8 that you’ll also find in the current-generation C63 and E63, the GT R isn’t just powerful, it’s downright ferocious. Any press of the throttle is met with a huge amount of acceleration but a surprising amount of control. Despite its wild, flared looks, the GT R is very easy to drive, while a multitude of driver aids and traction control settings keep things in check – even in the wet.

Stepping from the GT R into the 190 is like stepping back in time.

What’s the older car like to drive, then?

Well, for starters it reminds you of what truly unassisted driving feels like. There’s a huge amount of heft to every input – the steering requires a lot of thought, while the brake pedal needs a lot more pressure than you’d expect. That said, it rides impressively well and keeps a lot of road noise out.

The gearbox really highlights how far things have progressed from 1987. Need to accelerate quickly? Press the throttle and you’ll be met with a thunk as the gearbox drops down two cogs. It’s leagues away from the seven- and nine-speed automatics found on modern cars.

As for the cabin, it remains a masterclass in how to over-button pretty much everything. There’s a factory-fitted tape deck – of course – and there are things to press littered almost all over the car’s interior. Of course, this set up the fundamentals for future Mercedes cars, although features such as the delicately thin steering wheel have slowly slipped away.

AMG has produced some wild and wonderful cars over the years

TOP 10 AMG CARS

1971

Mercedes 300SEL 6.8-litre ‘Red Pig’ Power: 414bhp One of just five ever made, the notorious ‘Red Pig’ had a short, but impressive, racing career.

56 | CarDealerMag.co.uk

1986

Mercedes AMG W124 300E 5.6-litre ‘Hammer’ Power: 350bhp Anything with the name ‘Hammer’ has to be feared; this is no exception.

figures that were unheard of at the time. And it was iconic vehicles such as this that came to define the company.

In 1989, AMG even partnered up with Mitsubishi to create the Debonair V 3000 Royal AMG. The engine was completely overhauled, and although it wasn’t a huge success it showed the diversity of AMG’s abilities.

However, rather than shunning AMG as just another tinkerer, Mercedes-Benz signed a ‘co-operation contract’ with it in 1990 – allowing it to use its entire dealer network and produce vehicles based on the ones it was making.

A third production plant was opened, and the workforce shot up in size to 400.

The first car that was born as a result of the partnership came in 1993 – the C36 AMG. It featured tuned suspension, a four-speed (yes, four – this is 1993) automatic gearbox and a 3.6-litre straight-six engine that produced 276bhp.

Although its 5.8-second sprint to 60mph is achieved by many quicker diesels today, it was enough to scare the BMW M3 of the time.

In 1999, DaimlerChrysler as it was known at the time acquired 51 per cent of AMG’s shares, and then in 2005 Aufrecht gave up his remaining shares to the company – making Mercedes-AMG a full part of Daimler. That wasn’t the end of Aufrecht’s involvement, though.

The motorsport arm of Mercedes was transferred to his company, with 200 staff managing the manufacturer’s role in the German Touring Car Championship.

Fast forward to 2017 – 50 years after AMG’s birth – and the company has more models than ever, seamlessly integrating Mercedes-Benz cars with its own performance and design ethos.

At the base of the line-up sit the 45 model cars.

What started as a two-man operation has become one that now has more than 1,500 employees and delivered close to 100,000 units in 2016: 44.1 per cent more than the previous year.

In the same way that Aufrecht faced challenges throughout the early development of the company, so AMG has to deal with new problems. Its key strategies involve making engines that are not just more powerful but also cleaner than ever before.

Despite this substantial growth, AMG remains a ‘one man, one engine’ company. This means that from the very start of engine production to the finish, just one technician is involved. At the

1989

Mercedes 560 SEC 6.0-litre AMG Power: 380bhp Equipped with an ultra-wide body, the dull SEC coupe was transformed by AMG into a monster.

1998

Mercedes CLK GTR Power: 604bhp AMG’s most feared road car to date was essentially a race car for the public road.

Despite this substantial growth, AMG remains a ‘one man, one engine’ company.

1999

Mercedes SL73 AMG Power: 518bhp AMG put a 7.3-litre V12 in the SL, an engine that made its way into the Pagani Zonda.

CarDealerMag.co.uk | 57

FEATURE. Interview: Eva Wiese, head of marketing and product management, Mercedes-AMG What do customers love about AMG? I think it is the highly dynamic driving performance combined with the day-to-day usability of our cars.

AMG and its cars were born on the racetrack and are still competing there.

Motorsport is part of our DNA and we are passionate about always challenging the status quo. This is the special spirit of AMG our customers love. At the same time, our cars are very comfortable and luxurious.

Nevertheless, the superlative performance experience is our core strength.

What does the future for AMG hold?

We have been steadily extending the AMG GT family since 2014, and we now have eight different models. The world premiere of the AMG GT Concept in Geneva showed that our GT family will continue to grow.

Performance with responsibility is what drives us on, as our cars become ever more efficient thanks to new engine technologies and the extensive use of lightweight materials. Today, AMG models produce some of the lowest levels of emissions in their respective segments. With the AMG Hypercar we will present the pinnacle of what is currently technologically feasible in terms of performance and efficiency.

AMG continues to be heavily influenced by motorsport

What, throughout its history, has made AMG stand out?

There are different success factors. One is definitely the philosophy behind our brand: AMG was born on the racetrack and that’s also where we grew up. This DNA is still characteristic of the brand today. This means that we never stop challenging the status quo. A second success factor is that we have the opportunity to go our own way. We have a brand profile that is clearly orientated to performance. The SLS, as well as the GT vehicles we have developed independently, are compelling proof of this.

At the same time, AMG is part of Daimler’s worldwide R&D network. This gives us immediate access to the most sophisticated technologies and the latest innovations in the automotive industry.

Which has been your favourite car from the AMG range?

I currently drive the Ocean Blue Edition of the C 63 Cabriolet. This is a special edition with numerous details. To me, this car is special because it is designed for a particularly design-oriented and fashion-conscious target group, in which I find myself.

58 | CarDealerMag.co.uk

TOP 10 AMG CARS

2006

Mercedes E63 AMG Estate Power: 507bhp What could be better than a 6.2-litre V8 in an estate? Very little.

2007

Mercedes CLK63 AMG Black Series Power: 507bhp If it was good enough for Jeremy Clarkson – he owned one – then it’s good enough for us.

end, they get to apply their personal nameplate to the engine – something you’ll see on all modern AMG vehicles. The AMG range now comprises more than 40 models, ranging from hatchbacks to convertibles and even six-wheeled off-roaders.

Of course, AMG engines haven’t just featured in Mercedes-Benz vehicles. One of its legendary V12s – first seen in the SL73 AMG – powered the iconic Pagani Zonda, providing acres of performance for one of Italy’s most famous vehicles. The track-based Zonda R even used the 6.0-litre V12 from the Mercedes-Benz CLK GTR – a road-going version of the FIA GT racer.

More recently, a partnership between AMG and Aston Martin was announced. It’s seen the British manufacturer adopt AMG engines and drivetrains, as well as electronic systems from Mercedes-Benz.

We’re already seeing the fruits of the partnership – the latest DB11 uses the same 4.0-litre turbocharged V8 that you’ll find in current Mercedes-AMG ‘63’ cars.

The A45, CLA45 and GLA45 all use the same 2.0-litre four-cylinder turbocharged petrol engine – the most powerful turbocharged four-cylinder in production today. Compared with the large, heavy engines of AMG’s early years, these units couldn’t be any more different.

Of course, there’s still a place for hugely powerful engines, although clever technology has made them far more economical than before.

AMG’s current 4.0-litre turbocharged V8 – smaller in capacity than many of the engines it has produced throughout its lifetime – produces in excess of 500bhp, and when fitted into cars such as the C63S, it can allow them to hit 60mph in as little as four seconds.

Whereas AMG originally just focused on a car’s engine, it now works on all elements of the vehicle. Brakes are uprated on AMG cars, while the interior is given a far sportier feel than those found in standard models.

It’s even spawned its own trim line designed to give those unable to buy a full AMG vehicle a snippet of the drama.

What does the future hold for AMG then? Well, the next couple of years will undoubtedly see alternative fuel methods being adopted. We’ve already seen an all-electric SLS, but it’s almost certain that future AMG cars will incorporate some form of electrification. One thing’s for sure, though – AMG cars are only going to get faster.

2009

Mercedes SL65 AMG Power: 661bhp An absolute monster of a car, capable of 199mph and 0-60mph in just 3.8 seconds.

2013

Mercedes SLS AMG Black Series Power: 622bhp Extra horsepower and tweaks made the Black Series a huge step up over the standard SLS.

‘Of course, there’s still a place for hugely powerful engines, though clever technology has made them far more economical than before.’

FIRST DRIVE Turn the page for the GT C Coupe Edition 50

2017

Mercedes AMG GT R Power: 577bhp Powered by a smaller and lighter 4.0-litre V8, the GT R is one of the most track-focused cars ever.

CarDealerMag.co.uk | 59

FEATURE.

FIRST DRIVE

Mercedes-AMG GT C Coupe Edition 50 James Baggott squeezes himself into this muscle car to be rewarded with excitement and exhilaration What is it?

What’s it like to drive?

This is the Mercedes AMG GT C Coupe Edition 50 – a name nearly as long as the range is complicated. In short, this is the second hottest model in the sports car line-up and sits slightly below the utterly bonkers GT R. Think of it as the Porsche 911 Turbo S, with the GT R the Porsche 911 GT3 RS – that’s the only way it’ll make any sense. We’ve already seen the GT C in convertible form, but this is the coupe, and only available currently as a 500-production ‘Edition 50’ special run. It features a monstrous engine, thunderous soundtrack and super GT looks.

On the road, it feels big and wide. Visibility isn’t great and placing it takes practice – this certainly isn’t a car you can jump in and hit warp speed instantly. It’s got fantastic levels of grip, though, and despite those tyre-shredding performance figures it puts those huge lumps of power down impressively well, aided smoothly by a quick, seven-speed auto gearbox.

The steering feels heavy, perhaps even a little slow at times, but it’s communicative. As the name suggests, this is definitely a performance GT rather than a lithe and supple sports car. On paper, it might be a rival to an Audi R8 or Porsche 911 Turbo S, but both of those would feel far more sports car than this. The GT C is muscle; more raw power and less finesse.

What’s new?

It’s the engine that steals all the headlines – but more on that in a moment. It’s important to note before we move on that the GT C borrows many of the bigger brother GT R’s technical refinements. Those include active rear axle steering, electronically controlled locking differential and a wider track than its lesserpowered GT and GT S siblings.

What’s under the bonnet?

So, what about that engine? Well, all GT models feature the same 4.0-litre V8 with a ‘hot inner V’ – a compact engine design that places the turbos on the inside of the engine’s ‘V’ so they spool up more quickly. Power output for the GT C is a whopping 549bhp backed up with 670Nm of torque. Those numbers translate into explosive performance with it hitting 60mph in 3.5 seconds and going on to 197mph. It all feels like you’re at the centre of a tropical thunderstorm – an earthmoving thunder clap channelled to the Tarmac through colossal wedges of rubber.

Power

The GTC utilises a turbocharged 4.0-litre engine.

How does it look?

That muscle car look might be exactly what buyers are looking for, though. Its long, blunt nose, tight rear and low stance will win the most buyers. It’s a unique look – something that’s pretty unrivalled on the road – and one Mercedes is pegging a lot of the GT’s success on.

What’s it like inside?

Inside, the driver is surrounded by a focused cabin. A large, somewhat intrusive transmission tunnel is littered with buttons and dials and the hard-to-get-to-grips-with multimedia system is frustrating. We’ve tried the system in a number of different Mercedes models now and it never gets any easier to comprehend or use.

The touch-sensitive trackpad is clunky and the graphics look dated, especially when compared with the latest systems from the likes of Jaguar Land Rover. The interior feels incredibly cramped,

too. For what looks like a big car on the outside, it has reverse-Tardis-like qualities inside. Taller drivers will find their knees butt up against the bulkhead and the seats don’t recline anywhere near far enough.

What’s the spec like?

Standard spec on the GT C includes 19-inch front and 20-inch rear alloy wheels, Burmester sound system, parking sensors and camera, keyless go and an AMG performance steering wheel finished in nappa leather. It’s topped off by red brake calipers with AMG lettering.

What do the press say? iNews said: ‘The GT C’s point and squirt attitude is pleasingly reminiscent of a big old Aston 60 | CarDealerMag.co.uk

THE KNOWLEDGE Model: Mercedes-AMG GT C

Coupe Edition 50 Price: £139,855 Engine: 4.0-litre V8 twin turbo Power: 549bhp Torque: 670Nm Max speed: 197mph 0-60mph: 3.5 seconds MPG: 20 Emissions (g/km): 259

Exclusivity

Just 500 Edition 50s will be produced.

Paintwork

Graphite Grey Magna is specific to this model.

TARGET BUYERS: Buyers who want more muscle than sports car.

THE RIVALS: Audi R8 V10 Plus, McLaren 570 GT, Porsche 911 Turbo S. KEY SELLING POINTS: 1. It looks and drives like a muscle car.

2. It’s been developed by AMG for the road.

3. It sounds like thunder.

DEAL CLINCHER: It sounds and accelerates like an explosion.

Martin. As the name indicates, this is a grand tourer, not a 911, and it’s all the better for that.’

Evo added: ‘The GT C feels instantly more composed and calmer than the basic MercedesAMG GT. There’s a tautness to the way it rides but, with the car and chassis in Comfort mode, it rounds off the harshest bumps very well.’

What do we think?

If you can see past the complicated naming strategy to pick the right model, you’ll be

rewarded with a technologically advanced, blisteringly fast and characterful GT. It’s cramped inside for taller drivers, and parts of the multimedia system can be infuriating, but there’s no denying the GT C is staggeringly quick, exciting to drive and looks the muscle car part. Buyers will have a tough choice between this and the very capable alternatives from Audi, Porsche and McLaren, though – while Mercedes will be hoping its AMG heritage and booming soundtrack will pull in the punters. [CD]

Handling

Rear-wheel steering increases precision.

CarDealerMag.co.uk | 61

BE PART OF THE FUTURE

Aston Barclay Donington Park Launching 28th September 2017 10am

250 fleet entries VIP Auctioneers Entertainment & Refreshments Donington Park East Midlands DE74 2RP www.astonbarclay.net

62 | CarDealerMag.co.uk

FOCUS ON.

Lead generation

Bringing dealers and buyers together How do you get hold of those all-important leads that help you to seal deals and make money?

by DAVE BROWN @CarDealerDave

L

ook up ‘lead generation’ in an online dictionary and you’ll be presented with a definition along the following lines: ‘The action or process of identifying and cultivating potential customers for a business’s products or services.’

That seems reasonable enough, but how exactly do you go about doing that? For many dealers reading this, having a sizeable advert in the motoring supplement of your local paper will have been the way to do it for many years.

And while that might still be working for some of you out there, there are many more ways to approach things these days.

Over the next few pages of this edition of the magazine, we chat to four companies who are all convinced they can help you attract more customers and do more deals. And what’s not to like about that?

First up, we have a contribution from Codeweavers, a company that’s definitely all about helping dealers and customers come together. Sales director Shaun Harris has 12 ideas and insights to help you improve your online lead generation activities. We won’t steal his thunder by mentioning them all here, but you might want to build a quality database, be prepared to take a call or reply to an email at 7pm on a Monday evening, and work hard to stay in touch with your customers with email campaigns.

Next up – have you thought about joining the RAC Approved Dealer network ? The RAC brand is central to generating leads for 300 dealers up and down the country. Buyers rightly believe that

the RAC would only put its name to a used car scheme of the highest quality and in many cases, they are willing to travel hundreds of miles for the right car prepared to RAC standards.

Next we chat to iVendi, whose Car Finance Checker is very effective at generating leads.

It’s a tool that can be used by buyers online to prequalify themselves for motor finance.

The dealers who have adopted it report almost uniformly excellent results with the leads it generates ‘probably the most qualified that you are ever going to receive!’

Last, but by no means least, Calltracks talk to us about the amazing technology they can offer to help sort your calls and use real-time alerts to ensure no prospective leads are missed.

FEATURED SUPPLIERS

Codeweavers

RAC

iVendi

Calltracks

Twelve top tips to gain more leads and do more business.

Joining quality network will help dealers differentiate themselves.

P64

P66

It’s time to harness the awesome power of Car Finance Checker.

If that missed call was a great lead, Calltracks can rescue it !

P68

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FOCUS ON.

Lead generation

Twelve ways to enhance lead generation online CODEWEAVERS

T: 0800 021 0888 E: contactus@codeweavers.net

From Codeweavers sales director Shaun Harris

A

t Codeweavers, we are all about helping dealers and customers come together.

Our solutions, which leverage the importance of finance, are just part of our success. The other, possibly more important, ingredient is our passion for motor retailing and our capacity to help our clients succeed.

This is not simply restricted to our software and we are always happy to share our practical insights and ideas.

What is always true is that driving sales in a tough market is about: • Thinking long- and short-term.

• Trying something new.

• Adapting to a changing market – agility and speed are key.

• Maintaining good processes and controls.

• Placing the customer’s needs ‘front and centre’.

So, to get you thinking, here are 12 ideas and insights to improve your online lead generation activities.

1

Trust-building online – does your website work to sell your dealership or just your cars? Add some personality to your site and incorporate news, views and FAQs to build an online rapport with your prospective customers and add testimonials that your customers can relate to. It helps to ensure customers stay on your site longer, which in turn increases the chance of a sale.

Over 80 per cent of customers need finance to buy their next car. Ensure finance is highly prominent online, ideally with payment information alongside each car.

Build a quality database. Compliance alert: The General Data Protection Regulation (GDPR) is coming in May next year. It will seriously change how you capture and manage customer data. Get on board with this regulation now.

2 3

64 | CarDealerMag.co.uk

4

Do you know the quality of your leads and have you been measuring the sales conversion rate? Motor Credit Check allows your customers to check whether the finance offers on your websites are likely to be available to them.

Codeweavers customers who have this have seen a 37.4 per cent sales conversion rate for customers who complete Motor Credit Check.

In line with GDPR, make sure you get positive consent from customers to ‘opt-in’ to your marketing online and in the showroom and do it now; you won’t be able to contact them from May 25 next year, otherwise.

Online tools – make sure they are easy to find and that you monitor the click-throughs from them. If you have a low click-through rate, changing the style or the prominence of the button can increase this.

Monday at 7pm is the peak time for online customer browsing (from our data).

Are you available to field that call or email into the early evening?

Ensure your website forms capture data line by line, so even if a car buyer doesn’t complete your forms you still receive the lead.

5

6 7

8

9

Create special finance offers and change them regularly; if this seems awkward, we have a special Used Car Offer tool so you can configure and manage your car offers easily and they are available on your website instantly.

Add a finance call to action on the listings page. Dealers can increase their finance inquiry rate by as much as six times by doing this.

Receiving lots of partially completed forms from your car buyers? Codeweavers has created the ability to email-prompt your customers to complete a partially-completed finance form through Codeweavers’ Lead Management System.

Retention – work hard to stay in contact with every customer with email campaigns and encourage them to refer a friend.

10 11 12

So there you are, some old ideas and some new ideas for you, but above all some very ‘do-able’ actions that can help build your pipeline and that is what Codeweavers is all about.

If we can help, we would be delighted to do so, and even if we can’t help, we can often recommend someone who we believe can.

Find us online at Codeweavers.net

Having the right finance solution on your website 5 things to consider when selecting and presenting a finance solution on your website

1

Your finance solution should include multiple lenders Codeweavers provides a Multi Lender Platform solution.

4

2

We provide a range of calculators with different styles and functionality to suit any website.

A style of finance explainer videos that suits your website Codeweavers provide five styles of finance explainer videos that you can pick from.

www.codeweavers.net

contactus@codeweavers.net

3

Ability to create 'special offers' instantly on your websites calculator

The calculator needs to be in keeping with your website

You can do this using our used car offer tool. This will help capture potential car buyers.

5

A calculator should calculate instantly and should be informative Our calculators instantly calculate and educate the user with info boxes within the quotes.

0800 021 0888

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FOCUS ON.

Lead generation

How dealers use the RAC brand to generate leads – and extra profits RAC

T: 0330 100 3807

W: rac.co.uk/getapproved

I

n a highly competitive used car market, how do you differentiate yourself and create leads that have the highest chance of converting into sales? Almost 300 dealers around the country are answering these questions by becoming RAC Approved Dealers.

The RAC brand itself is central to generating leads for these dealers.

More than three-quarters (76 per cent) of used car buyers who purchased a car from a member of the RAC Approved Dealer Network said in a survey the brand first attracted them to the dealership.

Sean Kent, sales director at the RAC Dealer Network, said: ‘The philosophy behind the RAC Dealer Network is to offer a used car proposition genuinely worthy of the trust that customers place in the RAC name.

‘Being able to use the brand means that dealers are able to genuinely differentiate themselves from their competition, creating more interest from consumers and, of course, generating more and better-quality leads.’

At the heart of the RAC Approved Dealer proposition is RAC BuySure – a unique used car offering that is designed to meet and exceed buyer expectations of the RAC brand.

Kent said: ‘RAC BuySure has been developed specifically to provide used car customers with an initiative, available nationally, that sets the very highest standards in the market.

‘Being part of the scheme does mean a high level of commitment from dealers in providing the right vehicles and the right level of support. However, they are rewarded with leads and customers who are prepared to pay a little more for a vehicle of this quality. Our research indicates additional unit chassis profits of £200 to £300, while there is also reduced pressure to discount.’

All about RAC BuySure RAC BuySure sees dealers commit to an 82-point RAC Approved Preparation Standard on every vehicle, a car data check, and a minimum of three months of RAC Warranty cover. In support of this, the RAC will provide 12 months’ RAC Roadside breakdown cover.

More customers from a bigger footprint ONE of the advantages of being an RAC Approved Dealer is that the strength of the brand delivers customers from further afield. Sean Kent explained: ‘When a customer is browsing used cars online, having the RAC name next to the vehicle is a major selling point. With RAC BuySure, we regularly hear of people driving from across the country to see a dealer. They rightly believe that the RAC would only put its name to a used car programme of the highest quality and so are willing to travel hundreds of miles for the right car prepared to our standards.’

‘The right businesses’ are being sought to become RAC Approved Dealers DEALERS who place the customer at the heart of their business are being sought to become RAC Approved Dealers. In the past year, the network – which is now larger than many manufacturerapproved used car programmes – has grown from just over 200 to almost 300 dealers.

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 businesses who share our customer service ethos. Our approach with RAC Approved Dealers has always been to put quality first.’

What dealers say AUTOLINK Portishead is a family-owned garage that has been in business for 13 years. Keith Squire, director, said: ‘We have been an RAC Approved Dealer for a little over a year and have enjoyed our best-ever 12 months as a result.

‘While we have increased our costs as we used to self-insure, we have still improved our profit per unit to its highest-ever level.

‘We believe that this profit improvement is in part because we are not reducing the price of the car as a result of selling the benefits of the RAC package instead.

‘We have also seen an upturn in inquiries from customers who are only searching for cars in RAC Approved Dealers.’

Do you want to find out more about becoming an RAC Approved Dealer? For further details call 0330 100 3807, email dealernetwork@rac.co.uk or visit rac.co.uk/getapproved 66 | CarDealerMag.co.uk

‘‘Customers find us on the RAC website and the trust is there immediately.”

ANDY ENSTONE RAC Approved Dealer, Hertfordshire

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, this status can help drive them to your forecourt.

Call us today and harness the power of RAC Approved status.

0330 100 3807

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

CarDealerMag.co.uk | 67

FOCUS ON.

Lead generation

iVendi wins a prestigious award in the lead generation game IVENDI

E: enquiries@ivendi.com

T

he outstanding lead generation capabilities of iVendi’s Car Finance Checker have been recognised with a Consumer Lead Generation Site of the Year category win in the 2017 Car Dealer Power Awards.

The company beat several nominees to take the category, with the award being presented at a special ceremony at the Spinnaker Tower in Portsmouth. iVendi pioneered the concept of the motor finance pre-qualifier, allowing consumers to check their likelihood of approval for a range of finance products offered through your dealership.

Car Finance Checker can be used by buyers online to prequalify themselves for motor finance with each dealer’s panel of lenders, showing the likelihood of approval for an application with each different finance provider.

It was launched into the car dealer sector four years ago and has since been adopted by a number of major dealer groups, lenders, car supermarkets and independents.

James Tew, CEO, said: ‘Car Finance Checker is a key part of our suite of products, giving the buyer valuable potential information about their likelihood of approval with a whole panel of lenders without leaving a footprint on their credit file.

‘This allows the customer to look at the best deals that are available to them, as well as examining the effects of varying parameters such as putting down a larger deposit or altering the repayment period.

‘Our research shows that it has a direct impact on the buyer’s propensity to progress

T: 0345 226 0503

their purchase as far as possible online. It is an essential lead generation tool.’

Tew explained that customers automatically grasped the way in which Car Finance Checker worked because of its similarity to a range of online price comparison sites.

‘We find that customers immediately understand the product and its benefits.

‘Like no other online motor finance tool, it allows them to take control of their finance journey and, in that sense, is very much in the spirit of FCA compliance.

‘The dealers that have adopted it report almost uniformly excellent results. Simply, the leads it delivers are probably the most qualified that you are ever going to receive.’

Car Finance Checker also enables dealers to create a customised micro-comparison site using their own lender panel – giving them attractive and effective tools to compete directly with online brokers and lenders.

Tew added: ‘Some of the most productive uses of Car Finance Checker we see happen in the showroom. Different dealers use it in different ways – some simply leave the customer to find their own deal, putting them in control.

‘Others use it as a more structured part of the sales process, walking the customer through the process of checking themselves for finance.’

‘The dealers that have adopted it report excellent results’ James Tew

C

M

Y

CM

MY

CY

CMY

K

James Tew, CEO of iVendi

A complete solution WITH offices in Manchester and Abergele, and more than 7,000 connected dealers across the UK, iVendi is the UK market leader in online motor finance technology.

The iVendi Platform provides a complete online motor finance solution for dealers, motor finance providers, car portals and manufacturers. To find out more, visit ivendi.com, email enquiries@ivendi.com or call 0345 226 0503.

Car Finance Checker at a glance CAR Finance Checker enables dealers to create a customised micro-comparison site using their own lender panel – giving them attractive and effective tools to compete directly with online brokers and lenders.

Here are a few of its key features: • Provides a user experience already familiar to customers from popular online price comparison sites.

• Delivers highly qualified, real-time leads – the customer has chosen their car, 68 | CarDealerMag.co.uk

the finance product and is already prechecked for eligibility.

• ‘Soft search’ technology leaves no visible footprint on the customer’s credit file.

• Highly sophisticated engine matches decisioning rules from all major lenders and many others to create the most accurate results.

• Fully responsive design means it will work on smartphones, tablets and desktops – an essential feature today.

• Delivers a transparent process with clear

terms and conditions that fit the principles of the FCA. • Consumers can continually change parameters and requote – and each time the eligibility match is updated.

• Dealers can view all consumer interactions, including deposit, term and vehicle chosen – and all in real time.

• Consumers can apply formally to the lender directly from Car Finance Checker after seeing their results.

COMPLETE END TO END MOTOR FINANCE ‘PLUG-IN’ From comparison to transaction.

Allows your website visitors to search by monthly payment, compare a range of finance offers and check for likelihood of approval from your panel of lenders.

Qualified finance leads & applications Integrates seamlessly with the iVendi Showroom solutions in real time. The entire solution is branded to match your website identity and can be added easily by your media company.

You would be approved!

Likelihood

High

PCP

9.9%

£216

PCP

10.9%

£216

ML

10.9%

£217

PCP

8.9%

£324 £278

HP

9.5%

£278

£324

High

HP

To see the product in action, contact us on

10.5%

£329

0345 226 0503 tellmemore@ivendi.com ivendi.com

WEB SOLUTIONS

CarDealerMag.co.uk | 69

FOCUS ON.

Lead generation

Use tracking to sort out your calls and deliver more leads CALLTRACKS

H

W: calltracks.com

ow many sales leads are being missed by your dealership because of phone call mismanagement?

According to Calltracks, one in four calls to dealers are not answered adequately, and even though all phone calls are channelled the same way, 80 per cent relate to ongoing business, not new leads. Monitoring services can take several days to review tapes, by which time customers have grown impatient and moved on.

Calltracks aims to help dealers identify and solve these problems. Its platform has been developed over the course of more than a decade as the company has worked with some of the biggest dealer groups in the UK. The platform can be tailored to suit the needs of any dealership, be it large or small – and Calltracks provides high levels of support to all of its customers.

Calltracks tracks customer traffic to a dealership’s website to work out which channels provide the most leads. Phone calls are then tracked to the dealership, ensuring the sales team doesn’t miss out on any sales opportunities.

By using cookies, granular analytics and organic phone numbers, Calltracks can identify prospects coming from sites such as Google, Auto Trader and Motors.co.uk. Leads are then tracked through the dealer’s website and linked to incoming phone calls. As most companies do not have time to review the thousands of calls that are made each day, Calltracks helps them focus on increasing sales leads instead.

Without Calltracks’ innovative lead tracking, dealers could be

70 | CarDealerMag.co.uk

T: 020 8031 0678

wasting huge amounts of their marketing budget by dedicating too much money to ineffective traffic or mishandling phone calls.

We recently caught up with Stuart Buckley, CEO and founding partner of Calltracks, to find out what’s what with his pioneering company.

‘Calltracks, as a company, was founded purely because I was selling personalised number plates,’ said Buckley. ‘I wanted to know why I was getting loads of phone calls but not selling any number plates.

‘I realised I was spending all this money on marketing and, although I knew what it was generating, I didn’t know if it actually worked.

‘The idea was to track the sales through, and for the last 10 years, we’ve honed our craft and improved the platform. Marketing people get huge amounts of information about how many clicks they’ve had from online campaigns, how many people have clicked through from an email and how many people have engaged with the website, so they can use that to choose how they spend money slightly better.

‘Adding phone calls to that allows them to further see which ad campaigns and keywords are working well for generating leads.

‘At CDX17, we launched real-time alerts, which means if a call fits in to the sales criteria, meaning they’ve been filtered away from all the service calls and general inquiries, if the call isn’t long enough or missed or busy, we mark

that call as an inquiry on a new or used vehicle.

We put an alert on the call and the alert goes through to the sales manager, saying that we think this call is a missed opportunity.

‘The alert takes as long as an email does to come through, they get the notification, click one button and that gives them access to review the call, see what the content is and make a decision as to how to respond. The process is pretty much real-time. This isn’t a system to see who’s made a mistake with a call, it’s about the here and now, getting back on the phone to the customer and correcting the situation.

‘We always make sure we understand the operational structure of a business, we replicate that in Calltracks and build a system that mirrors their dealership, then we add the users.’

Once the easy set-up of Calltracks in your business is complete, you’re not left to fend for yourself. There’s a team of account managers who work with you to help you solve any issues you have and make sure everything runs smoothly.

So there you have it – a meticulously honed system for dealing with a costly issue that plagues dealerships throughout the country.

Is this a service you can afford not to have? Go on – pick up the phone.

by Tristan Shale-Hester (@tristan_shale) [CD]

From Good to Great Super Clever Call Tracking, Recording & Analytics for the Automotive Industry Have you ever wanted to really understand what makes your phone ring and how good you are at handling your telephone enquiries?

Our intuitive platform does all sorts of clever stuff including real time alerts on ineffective call handling which can give you another chance to close that deal.

If you want to know why more and more people are using us to improve their sales conversions get in touch (by phone of course!) and we’ll show you.

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|

calltracks.com/motor CarDealerMag.co.uk | 71

FOCUS ON.

Live chat

A fantastic way to interact with customers so let’s start the conversation!

Dealers need to engage with the Facebook and WhatsApp generation – and live chat can help

I

t’s no secret that customers these days expect more and more flexibility in the way they communicate with car dealerships.

And one of the ways they are increasingly inclined to do this is via live chat – visiting a dealership’s website and ‘talking’ via an online message service to a sales executive or other staff member about a particular car.

This development in terms of online communications presents great opportunities for dealerships – but can also lead to one or two headaches. How exactly do you man a live chat feed? And at what times of the day should it operate? During normal working hours, or into the evenings, say, until 7pm or 8pm?

by DAVE BROWN @CarDealerDave

Fortunately, there are plenty of firms who can help you answer these questions and provide sound advice and guidance on the best way forward. Two of them are included in this edition of the magazine.

On the page opposite we have Moneypenny, who say you can increase opportunities and drive more sales leads with their staff managing some or all of your chats as if they were based at your site. It’s definitely worth giving them a call to find out more and their contact details are contained within their ad.

Then we have a contribution from Visitor Chat, a company that manages interactions on behalf of thousands of car dealerships across the country.

The firm’s philosophy is that your live chat experience should become an extension of your dealer experience, helping to complement and increase trust in a brand-appropriate manner.

The company’s CEO, Chris Wateridge, tells us: ‘Visitor Chat has been designed to enhance a dealership brand experience.’

A speedy response is crucial, of course, and Visitor Chat can help here too, with its three package options that can help you get the conversation started: self-managed, jointmanaged and fully-managed. There’s an option for everyone, so give them a call and get chatting!

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P73 72 | CarDealerMag.co.uk

P74

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CarDealerMag.co.uk | 73

FOCUS ON.

Live chat

Four steps of automotive VISITOR CHAT

L

W: visitor.chat

ive chat is becoming an increasingly important aspect for the automotive digital platform, but how well do you understand its potential to add value?

Studies outlining the customer benefits of live chat are readily available, but a quality execution of automotive live chat and how it truly benefits the business is often overlooked.

Visitor Chat has compiled the four key steps to automotive live chat success.

1

T: 023 8098 2259

‘Visitor Chat software has been designed to enhance a dealership brand experience.’

2

The blink of an eye (that’s a very popular cliché for ‘speed’) Speed of response is a crucial element to any live chat experience. Failure to provide a timely chat response always leads to high chat drop-off rates.

The best BPO live chat companies will provide a first response time of 30 seconds or less.

A review of trends over thousands of chats shows a fast response time can make all the difference to live chat deal-flow creation.

Speed of response is the number-one reason why people choose live chat over phone and email, and the number-one reason given for a poor or excellent chat experience.

‘People who engage with live chat expect speedy response times,’ said Wateridge.

Brand activation Although live chat is largely recognised as a more informal channel than phone or email, your customer still rightly expects a brandappropriate engagement with you. Brand activation represents many different things to many different people, but by using certain triggers within a chat process, a beneficial brand association should take place at several points Measurement of return on investment throughout a chat engagement.

A BPO partner with experience in designing Car dealers and automotive and deploying automotive live chat platforms invest heavily in building strategies should work with your trust in their brand name. organisation to develop the right Your live chat experience set of metrics to measure its must become an extension to impact for the dealership. The your dealer experience, helping chat provider should provide to complement and increase you with detailed chat statistics, trust in a fully brandallowing for measurement appropriate manner. against other channels like email Focus should be placed on or phone to be compared over creating brand-appropriate user specific time periods. Measuring Chris Wateridge experiences, driven by both user deflection rates and escalation needs, and your own communication rates to equate the cost of providing goals and distinct message architectures. The best the solution to your customers, as well as the BPO live chat providers pinpoint behaviours that concurrent returns, are all crucial points to don’t align with their client’s values and then fully understand the value obtained by your help them modify behaviours so they can better organisation. Wateridge said: ‘Visitor Chat can achieve their brand message goals. help to identify suitable profitability measures for Chris Wateridge, CEO of Visitor Chat, said: your live chat system.’

3

4

Adapt to your insights Trial and error leads to success. Examine your analytic feedback and note successes and failures. Does your choice of platform provide all the features required to tweak and change elements of your design and the behaviour of your chat solution?

Allowing for changes based on your findings over the course of a campaign will help to

74 | CarDealerMag.co.uk

decrease drop-off rates. Over hundreds, or in some cases thousands, of chats over the course of a year, a small change can make a tremendous difference to your business when the big picture is revealed.

‘Developing valuable insights will help to continuously improve a live chat strategy,’ said Wateridge.

live chat success How Visitor Chat can help you

‘Visitor Chat can help to identify suitable profitability measures for your live chat system.’

VISITOR Chat manages interactions on behalf of thousands of car dealerships nationwide, and boasts a fully bespoke suite of self-managed, joint-managed and fullymanaged chat facility options.

The company manages live chat on more than 400,000 adverts across the AA Cars and Used Cars Northern Ireland directory websites, along with a range of franchise and independent dealers.

Visitor Chat offers three types of package to help you use live chat effectively.

Self-managed Would you like to manage all live chat interactions in-house? The Visitor Chat software will allow your team to make those meaningful interactions.

Joint-managed Want to keep an element of your live chat solution in-house, but don’t want to miss out on additional business? Our industryspecific back-up chat team will ensure that your business receives no missed chats.

Fully-managed Visitor Chat can manage your digital messaging for you 24 hours a day, seven days a week, forwarding all warm leads to your sales team for quick and easy follow-up. [CD]

‘Developing valuable insights will help to continuously improve a live chat strategy.’

CarDealerMag.co.uk | 75

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 76 | CarDealerMag.co.uk

FOCUS ON.

Aston Scott

What you need to know before you buy motor trade insurance ASTON SCOTT

W: astonscott.com

T: 03300 085045

A

s a professional in the motor trade sector, you’re likely to be focused on many key business considerations, including keeping your costs as low as possible. We understand the pressures you may face in searching for, and selecting, the cheapest solutions around for your insurance cover.

While cheap motor trade insurance may be good for your business overheads, do unrated offshore and road risk only policies really give you the cover you need?

We have highlighted some of the potential risks that can be associated with getting offshore and road risk only policies.

Who are unrated offshore insurers?

Many regulated insurance companies in the UK are assessed by an independent third party which determines the financial strength of the company. Outside the UK, insurers can be based in countries where this rating system is not applicable so the insurer’s financial stability is unverified.

What’s the challenge with unrated insurers?

There are some significant risks associated with using unrated insurers, such as: • They might be at a higher risk of financial collapse than rated insurers; • The companies are not independently verified for their financial stability; • You could experience delays in claims payments; • You may find them difficult to contact when there is a problem with a policy.

What’s the challenge with road risk only policies?

Motor traders looking to keep their business costs low may also consider road risk only policies.

It’s essential cover – but it is limited and may not give your business the full protection it needs.

For example, conditions that are not typically covered might include: • Allowing a member of the public to take a test drive in one of your vehicles; • Public liability cover (e.g. a member of the public injured on your premises following an accident); • Comprehensive damage repair to your vehicle after an accident; • The cost of fully repairing a customer’s car damaged whilst in your charge.

It might even be necessary in some cases.

While road risk only policies and cover from offshore unrated insurers may offer cheap insurance solutions, you do need to be aware that it can be a risky strategy, unless you have taken specialist advice and guidance in advance.

Trying to economise on insurance is understandable.

Motor trade insurance from the dedicated team at Aston Scott Aston Scott Ltd is one of the largest independent insurance brokers in the country.

We work with some of the major insurers who allow us to create a

more bespoke motor trade insurance policy cover, under our delegated underwriting authority.

We have a dedicated team committed to dealing with all our

enquiries promptly so you can feel confident you will get a personalised, fast and effective service.

Contact us today on 03300 085045 to find out more.

CarDealerMag.co.uk | 77

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

Employment law: What are the basics?

Q

I don’t have time to keep up to date with employment matters. What are some of the things I need to be aware of?

Employment law is changing all the time and will continue to do so post-Brexit. You are right to be concerned, especially now that the Supreme Court has ruled that employment tribunal fees are no longer applicable, which means employees may be tempted to take a punt on a case against you whereas before, they may not have been able to afford to do so. Much employment law is set out in the Employment Rights Act 1996 and this remains relevant.

This Act sets down some basics and requires you to provide your employees with a written statement of employment particulars within eight weeks of their start date.

A

JOIN CAR DEALER CLUB AND GET ALL THESE BENEFITS WORTH £1,000s FOR JUST £39.99 78 | CarDealerMag.co.uk

This statement must include basics such as your employee’s rate of pay, their hours of work and their holiday entitlement.

In addition, employees must be advised of terms and conditions of sick pay and pension entitlement and be given information about disciplinary procedures.

Whilst the Act sets out what you must by law tell your employees, you have the choice to add further contractual terms such as the right for you to deduct money from their wages if they cause you a loss by, for example, damaging a company vehicle or losing an iPad. These additional contractual terms must be reasonable. Other key legislation includes the Equality Act 2010 which covers discrimination and equal pay rights. You will run

into trouble under this Act if you are paying a female less than a male doing the same job or if you do not make reasonable adjustments to accommodate an employee who is or becomes disabled.

There is also the National Minimum Wage Act 1998 and its subsequent Regulations.

Currently the minimum you can be paying an employee of 25 years or older is £7.50 per hour but this generally changes each April.

In terms of breaks, you are looking at the Working Time Regulations 1998 which gives an employee the right to a 20-minute break after six hours and requires you to get written consent from your employee if their average working week exceeds 48 hours.

This Act is also where it sets

down that employees are entitled to at least 5.6 weeks’ paid holiday per year. This total can include bank holidays but it doesn’t have to if you want your employees to work some or all of the bank holidays.

Whether you close on bank holidays is up to you as a business but in total, employees must have at least 5.6 weeks’ annual leave.

In terms of overtime, you can decide the rate for that, but it is not unusual for salaried employees to have a clause in their contract requiring them to work additional hours for no extra pay to meet business needs (but not so many extra hours that their effective hourly rate drops below the national minimum wage). There is so much more, especially in relation to commission payments, but we will have to save that for another day.

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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.

Don’t ignore staff concerns

Q A

Can you fairly dismiss an employee after 20 months of unauthorised absence?

Apparently not, according to the recent employment appeal tribunal case of Brighton and Sussex University Hospitals NHS Trust v Akinwunmi.

This ruling is a reminder that an employer’s behaviour can and will be taken into account when a tribunal considers whether a dismissal was unfair.

On the face of it, you would think that if an employee refuses to return to work for 20 months, an employer should be allowed to dismiss that person.

However, as this case involving an unhappy team of consultant neurosurgeons demonstrates, that is not necessarily so.

The tribunal found there was a lot of discontent between the neurosurgeons and it essentially decided that the employer failed to do enough to properly address any concerns, meaning the neurosurgeon was justified in not returning to work after an unpaid sabbatical and was therefore unfairly dismissed.

WANT TO UPGRADE?

WHY I LOVE LAWGISTICS

Dispute over catalytic converter sorted thanks to expert advice and guidance ANDY BLUNN is operations manager at Cherrywood Cars, a Midlands-based dealer that sells between 80 and 90 cars per month, and deals with vehicles with higher-than-average mileages priced at £6,000 or less.

Lawgistics helped recently with a case involving a customer who had put the wrong fuel in a diesel Kia bought from the dealership.

Blunn takes up the story.

‘The customer brought his car to us and it was pluming with smoke.

We drained it and refilled it with diesel and it seemed fine.

‘He took the car away, but the EML light came on. Our mechanic looked at it and said it needed a new turbo and a catalytic converter.

He was a trusted customer so we said we’d sort the turbo out as a favour. However, he kept going on about the catalytic converter.

‘We spoke to Lawgistics about this and they advised us to get a sample of the fuel drained from the car, which we had kept, and send it away to get tested.

‘The sample was found to have a massive percentage of petrol in it.

‘Catalytic converters are expensive, about £900, so we said

we wouldn’t do anything else. The customer said he would take us to court. He wrote us a letter, which we sent through to Lawgistics. Because of their help and clear advice, the case was dropped.

‘Lawgistics talks you through everything. It has made me a better trader because you know the law.

‘It also stops you from getting bad reviews, because if you tell the customer the law – which Lawgistics has told us – people understand. It works with customers.’

Cherrywood Cars is on Lawgistics’ unlimited package, and even though it only sent 15 cases through to the firm last year, Blunn said that ‘if we had to use the service six or seven times in one week, they would always help you. I’d recommend Lawgistics to anybody.

They help us tremendously.’

Ted Welford

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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.

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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.

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.

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

Dragon2000 CarDealerMag.co.uk | 79

DATA FILE.

Thestatistics

n

SMMT Sales Data

n

Taking Stock

August sees another decline – but all eyes will be on September A relatively quiet month for new car retailers ahead of 67 plate arrival

T

he UK new car market reported its fifth consecutive month of decline in August, according to figures published by the SMMT. Registrations fell by 6.4 per cent, after a record August in 2016.

However, with more than 76,000 new cars registered, the performance still represents the third biggest August in 10 years. Year to date, the market remained broadly in line with expectations, down 2.4 per cent, with 1,640,241 new cars joining British roads in the first eight months.

Superminis and small family cars remained the most popular types in August, accounting for more than half (58.3 per cent) of registrations.

However, SUVs, larger family cars and executives were the only segments to grow, up 7.9 per cent, 2.2 per cent and 1.1 per cent respectively.

Meanwhile, more people chose to get behind the wheel of an alternativelyfuelled vehicle (AFV) than ever before in the month, accounting for a 5.2 per cent share of the market. Demand for petrol hybrid and pure electric

battery powered cars increased substantially, up 74.9 per cent and 62.5 per cent, while plug-in hybrid registrations rose 38.5 per cent.

Conventional petrols grew 3.8 per cent and diesels fell by 21.3 per cent.

Mike Hawes, SMMT chief executive, said: ‘August is typically a quiet month for the new car market as consumers and businesses delay purchases until the arrival of the new number plate in September. With the new 67-plate now available and a range of new models in showrooms, we anticipate the continuation of what are historically high levels of demand.’

Simon Benson, director of motoring services at AA Cars, said: ‘This is now the fifth consecutive month of decline since the rush by new car buyers to

beat the tax changes in April.

‘On the surface, another monthly drop-off looks bad for the car industry, however this is still the third biggest August in the last decade.

‘Typically August is always a slow month as consumers hang on for the new plates. We will have to wait until next month to see whether the malaise has truly set in – but in all likelihood, we’d expect to see a much more buoyant set of figures come September.’

Graham Hill, car finance expert at the National Association of Commercial Finance Brokers, said: ‘There’s little reason to think this is any more than a seasonal blip. August is typically a slow time of the year for new car buying as buyers hang on for the new plates.

‘The upturn in alternatively-fuelled vehicles will cheer the government and policymakers that the plans to ban the sale of petrol and diesel have given an early bump to hybrids and electrics.

‘Of course, next month will be the real test of whether continuous downbeat talk around new car finance deals – specifically PCPs – are having a realtime drag on the market.’

Predictions for 2017 are now starting to come true THE new car market is beginning to reflect predictions that were made at the start of the year, says Richard Jones, managing director at Black Horse, part of Lloyds Banking Group.

He said: ‘Despite some recent monthly figures showing significant changes, we’re starting to see the market level out overall and more closely reflect predictions for 2017 80 | CarDealerMag.co.uk

as a whole. Recent news regarding manufacturer scrappage schemes and long-term plans to tackle air pollution might have had an influence on August’s numbers, particularly on the ongoing drop in diesel sales, but there is still an education piece required regarding newer, cleaner diesel engines.

‘Whilst remaining only a small part of the overall picture, it’s also

interesting to note the ongoing growth in alternative-fuel vehicles – a trend we expect to continue.

‘Whilst the government’s target to end the sales of petrol and diesel cars isn’t until 2040, manufacturers, dealers and drivers need time to adapt to the option of alternative vehicles so I expect we’ll see a steep, yet steady increase for the foreseeable future.’

SMMT sales data Aug/year to date

5

Top

Most-improved manufacturers in August

MG +82% Aston Martin +40% Suzuki +27% Toyota +25% Seat +22%

5

Bottom

Worst-performing manufacturers in August Lotus -83% Jeep -57% SsangYong -54% DS -38% Subaru -36%

MASERATI -24%

MITSUBISHI +18%

Marque 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

August 2017

2017

152 143 21 6,301 75 4,607 4 2,054 769 312 1,283 9,234 1,886 2,441 216 565 207 3,060 1,512 205 15 53 1,209 6 4,738 181 1,524 436 3,710 2,601 294 1,852 2,232 2,918 303 100 44 1,758 2,742 6,678 6,923 786 19 264 76,433

% market share 0.20 0.19 0.03 8.24 0.10 6.03 0.01 2.69 1.01 0.41 1.68 12.08 2.47 3.19 0.28 0.74 0.27 4.00 1.98 0.27 0.02 0.07 1.58 0.01 6.20 0.24 1.99 0.57 4.85 3.40 0.38 2.42 2.92 3.82 0.40 0.13 0.06 2.30 3.59 8.74 9.06 1.03 0.02 0.35

August 2016

2016

135 148 15 6,195 69 4,752 0 2,593 845 504 1,719 11,703 1,826 2,440 280 722 488 3,849 1,574 234 90 70 1,269 0 4,651 99 1,608 367 3,503 3,164 299 2,485 1,816 2,687 352 219 69 1,384 2,193 8,579 5,694 776 43 132 81,640

% market share 0.17 0.18 0.02 7.59 0.08 5.82 0.00 3.18 1.04 0.62 2.11 14.33 2.24 2.99 0.34 0.88 0.60 4.71 1.93 0.29 0.11 0.09 1.55 0.00 5.70 0.12 1.97 0.45 4.29 3.88 0.37 3.04 2.22 3.29 0.43 0.27 0.08 1.70 2.69 10.51 6.97 0.95 0.05 0.16

% change 12.59 -3.38 40.00 1.71 8.70 -3.05 0.00 -20.79 -8.99 -38.10 -25.36 -21.10 3.29 0.04 -22.86 -21.75 -57.58 -20.50 -3.94 -12.39 -83.33 -24.29 -4.73 0.00 1.87 82.83 -5.22 18.80 5.91 -17.79 -1.67 -25.47 22.91 8.60 -13.92 -54.34 -36.23 27.02 25.03 -22.16 21.58 1.29 -55.81 100.00 -6.38

2017 2,720 3,168 1,087 108,916 1,164 106,328 53 35,109 16,616 5,981 31,913 194,484 34,953 58,728 2,688 23,155 4,433 60,865 52,452 7,490 208 1,122 26,247 327 114,912 2,479 39,519 10,387 98,581 55,008 8,899 46,268 35,894 52,507 7,059 2,551 1,608 26,366 65,580 130,693 129,044 28,709 471 3,499 1,640,241

Year-to-date (YTD) % market share 0.17 0.19 0.07 6.64 0.07 6.48 0.00 2.14 1.01 0.36 1.95 11.86 2.13 3.58 0.16 1.41 0.27 3.71 3.20 0.46 0.01 0.07 1.60 0.02 7.01 0.15 2.41 0.63 6.01 3.35 0.54 2.82 2.19 3.20 0.43 0.16 0.10 1.61 4.00 7.97 7.87 1.75 0.03 0.21

2016

2,320 3,286 527 107,298 1,218 106,061 3 44,685 15,676 11,151 38,549 205,142 38,161 56,610 2,244 19,958 9,270 57,609 49,015 8,424 231 913 30,342 0 104,904 2,300 38,597 12,097 92,029 64,856 7,647 50,837 29,604 50,745 6,968 2,854 2,045 24,213 62,030 161,259 129,298 27,034 522 2,267 1,680,799

% market share 0.14 0.20 0.03 6.38 0.07 6.31 0.00 2.66 0.93 0.66 2.29 12.21 2.27 3.37 0.13 1.19 0.55 3.43 2.92 0.50 0.01 0.05 1.81 0.00 6.24 0.14 2.30 0.72 5.48 3.86 0.45 3.02 1.76 3.02 0.41 0.17 0.12 1.44 3.69 9.59 7.69 1.61 0.03 0.13

% change 17.24 -3.59 106.26 1.51 -4.43 0.25 1,666.67 -21.43 6.00 -46.36 -17.21 -5.20 -8.41 3.74 19.79 16.02 -52.18 5.65 7.01 -11.09 -9.96 22.89 -13.50 0.00 9.54 7.78 2.39 -14.14 7.12 -15.18 16.37 -8.99 21.25 3.47 1.31 -10.62 -21.37 8.89 5.72 -18.95 -0.20 6.20 -9.77 54.34 -2.41

Figures supplied by SMMT

CarDealerMag.co.uk | 81

AUCTIONS.

BCA appoints Ian Carlisle as divisional CEO of BCA Services. bit.ly/BCA-115

Henstock AUCTION STATIONS

Think like a buyer when sending cars for sale

T

Bidders enthusiastic about future classics Inaugural sale sees turnover of nearly £1 million

B

CA’s inaugural Future Classics event has been a great success.’ sale at BCA Nottingham on Top value on the day went to a August 26 was a great success, 2014/64-registered Aston Martin V12 attracting a massive crowd of Vantage S Sportshift III, which sold for buyers and selling nearly 100 interesting £90,000. Finished in black and sitting on and unusual vehicles.

19-inch alloy wheels, this high-performance The sale featured an exclusive selection sports car had covered just over 4,000 of cars ranging in value from a few hundred warranted miles from new. pounds to many thousands with one Arguably one of the best-value cars, thing in common – all had the potential to an 87E Citroen CX 2.5 GTI Turbo in acquire classic status in the future. blue at 83,000 miles realised £1,300.

Nearly 200 buyers attended the event in These aerodynamic French saloons offer person, with a further 543 logging on to exceptional performance, developing take part via BCA’s Live Online service, and 166bhp and reaching 60mph in just 8.2 bidding was fast and furious. seconds, with a top speed of 129mph.

BCA UK MD Stuart Pearson said: ‘We This car is certainly quirky enough to were delighted that this first Future Classics gain cult status in the future. sale created such a wave of enthusiasm Dating from 1984, a Ferrari Mondial QV with our customers. There was interest 2.9 Coupe in Rosso Red sold for £24,700. across the board, from high-value modern This genuine supercar had covered just performance cars to older, more travelled 57,000 miles and featured a red leather 2+2 examples from the 1970s and 1980s. interior, aluminium gear shift, black leather ‘With nearly 100 cars sold on the day instrument console and top-of-the-range Car dealerapproaching new strip ad 3/16 14:32 Page 1 and a turnover £1 million, this 26/9/16 radio/cassette.

THE FLEET AUCTION GROUP - THE UK’S

N1 O

TRADE ONLY AUCTION

he plate-change period inevitably sees volumes rise substantially in the wholesale markets and stock levels typically remain high into October.

Any uplift in volume has the potential to change the balance in supply and demand and can impact on values as buyers simply have more choice.

The wholesale markets naturally see a rise in partexchange volumes, and in the rush to clear non-retail stock it is important to remember the basics of remarketing.

Presentation and preparation are a given, but don’t forget the paperwork when consigning vehicles for sale.

Of course, not every part-exchange will have a full service history, but make the most of what you’ve got.

If the V5C, MOT and service history are available, make sure they are present at the point of remarketing.

The presence of the V5C means no delays in onward selling if the vehicle goes back into the trade, while a service history shows the vehicle has been well maintained by the previous owner and confirms that a warranted mileage is correct as declared. These assets actually become marketing collateral when the car is catalogued online pre-sale.

Building buyer confidence is hugely important, and even hardened trade buyers value the comfort of knowing their judgment is supported by a comprehensive history file.

Missing sundries from a car are possibly less corrosive to values than a missing service history but they definitely have an effect on buyers. Missing manuals, radio/audio codes, spare wheels, tyre repair kits or locking wheel nut keys are an irritation for buyers and will almost certainly be reflected in the bidding. If they are present when the vehicle is part-exchanged, make sure your remarketing partner has them at the point of sale.

So, thinking like a buyer when you are selling will help you make the most of your part-exchanges when you send vehicles for sale. And that’s good news in an increasingly competitive marketplace.

Who is Simon Henstock? ‚

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

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The Fleet Auction Group Ltd., Stephenson Industrial Estate, Coalville, Leicestershire LE67 3HG Telephone: 01530 833535 Email: info@fleetauctiongroup.com www.fleetauctiongroup.com 82 | CarDealerMag.co.uk

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

Good supply and demand plus a richer mix of stock

A

verage values rose by £122 (1.3 per cent) across the board at BCA during August, as the company reported a strong trading month typified by a good balance between supply and demand and a continuing richer mix of stock.

The headline average value of a used car rose to £9,084 over the month, the second highest average monthly figure on record at BCA. Year-on-year, the headline figure was up by £742, equivalent to an 8.89 per cent increase in average values – a result reflecting both the steady demand, well-balanced supply and richer mix of stock available at BCA over the past 12 months.

Notably, the average age and mileage profile continued to fall – average mileage declined by around 3,300 miles, although age was only marginally down compared to a year ago.

With inventory stable and good levels of demand across the used car sector, values and 84 | CarDealerMag.co.uk

conversion rates typically improved for the fleet/ lease, dealer part-exchange and nearly new sectors in comparison to July.

Reports from managers across BCA’s 24-strong network also bear this out, with both car and LCV sales performing strongly, despite it being the height of the summer holiday season.

With the market now firmly into the second plate-change period of the year, activity levels are high across the wholesale sector.

Based on previous years’ experience, the market will see volumes peak in October and November with the possibility of a brief period of over-supply when values may come under pressure.

Typically, prices will strengthen later in 2017 as dealers start to plan for the new year.

Average values in the fleet and lease sector improved by £48 in August to £10,534,

Headline average value of a used car:

£9,084

equivalent to a 0.4 per cent rise. It was the highest average monthly value recorded at BCA for fleet and lease stock.

Retained value against original MRP (Manufacturer’s Retail Price) improved slightly to 42.70 per cent, while year-on-year values were up by a significant £644 (6.5 per cent), as both average age and mileage continued to reduce.

Values rose in the dealer part-exchange sector, improving by £48 (0.7 per cent) to £4,675 in August. Longer term dealer part-exchange values have been relatively stable during 2017, with year-on-year values ahead by £432 (a significant 10.1 per cent increase), while average age and mileage are little changed over the period.

Values for nearly-new vehicle values were effectively static in August, down by just £5 to £18,756.

Model mix has a significant effect in this lowvolume sector, as we always say.

Dealer partexchange values:

£4,675

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CarDealerMag.co.uk | 85

A GLOBAL VIEW.

..in association with

It’s the Chinese way...

A typical BMW dealership in China

Jules Grinnell, APAC product & technology director at CDK Global, looks at how the rapid growth in Chinese automotive retailing is affecting customer loyalty and dealer efficiency

T

here are more than 2,000 dealer groups operating in China, with most running multiple single-brand sites, mainly due to OEM controls.

With the market being driven by OEMs, many of the dealer management systems operating at the dealerships are ‘recommended’ by individual manufacturers, meaning some dealer groups are operating as many as 17 dealer management systems at once.

Last year, 24.4 million new cars were sold in China – nine times more than the UK’s 2.7 million registrations.

Most of these sales were to first-time buyers who were neither brand- nor dealer-loyal. This, however, is expected to slowly change.

New regulations around franchises and service centres are now being introduced, offering new opportunities to dealer groups. Similar to the Automotive Block Exemption Regulation in Europe, dealers will be allowed to operate multifranchise showrooms.

In addition, independent service and repair centres will be able to increase operations and gain access to the same parts supplier plus the same repair and service technologies without warranty issues. This will result in increased competition for dealer-based workshops.

Combined with the recent trend of shopping mall-type outlets for multiple car manufacturers, it is expected that the dealer market will start evolving in the next six months.

In addition, the increasing number of motorists looking to purchase their second car will mean

there will be more of a focus on encouraging customers to be brand- and dealer-loyal.

Market background With only 15 per cent of the 1.3 billion-strong population in China owning a vehicle, new vehicle sales remain a huge area of growth.

With a market share acquisition strategy and demand for new vehicles, the opportunities for new dealers continue to grow – for example, more than 60 new BMW dealerships have opened in smaller cities around China.

To capitalise on this continued growth, dealers are now starting to look at ways to increase other revenue streams and improve efficiency. With dealer workshops often supporting 10 to 18 work bays per brand, there is a great deal of idle time within the aftersales operation.

In addition, new tax laws are being implemented to help increase competition and efficiency in the used car market.

Currently, part-exchanges are virtually unheard of – 99 per cent of used vehicles are sold privately as dealers get taxed twice: once when they buy the car and again when they sell it.

Currently, broker sites are often used instead to introduce sellers to buyers, but in the future, dealership taxation rules are going to change.

This will increase opportunities to offer part-exchange options to customers, helping to grow the next generation of new vehicle sales. Suddenly, customer loyalty will become increasingly important.

A new focus on customer service?

Customers are likely to be open to shifting between brands when looking for their second car, so there will be a focus on finding ways to keep these customers both brand- and dealerloyal. To encourage repeat custom, dealers are beginning to look at ways to improve the customer experience.

Actively promoting service appointment bookings, for example, can also help bring customers back, which will be increasingly more important as non-franchised service centres increase in number.

The new retail laws in China will reduce the power of manufacturers over the retail networks, online multi-brand retailers and third party service centres.

By using new technology to engage with customers, such as the all-encompassing WeChat social platform and direct marketing campaigns, dealers can find new ways to engage with customers beyond their first car purchase.

Who is Jules Grinnell? Jules Grinnell has worked in the automotive industry for 25 years, installing dealer management systems for large international dealer groups and luxury European car manufacturers in more than 20 countries. He has relocated from France to Beijing for his current role with CDK Global as product & technology director in the APAC region.

86 | CarDealerMag.co.uk

REAL DEALS.

IN ASSOCIATION WITH

A Blackpool blast from the past surfaces ADAM WELLER gets misty-eyed over TVR as a low-mileage Chimaera boasting a new chassis and roof takes him back to the ’90s

A

ll in all, this isn’t the best time to be a car enthusiast. While there have

been some exciting cars shown to the world in 2017, the year as a whole will go down as something of a petrolhead annus horribilis for reasons well covered within the pages of Car Dealer.

With that in mind, the news of TVR’s new Griffith was truly uplifting. It’s a proper, nononsense, manual transmission-bestowed, front-engined V8 sportscar in a world of plugin hybrids, scrappage schemes and emissions scandals; an old-school Blackpool kick to the teeth if you will, albeit now produced in Wales.

The buzz around TVR and its revival left many in the office reminiscing about the manufacturer’s past in both a negative and positive light. For some, this led to a trawl through the classifieds to look at the market for TVRs of old. Initially, this piece was going to be an ode to the mighty T350C: an old, underappreciated favourite. However, as soon as we laid eyes on this particularly clean Chimaera, plans abruptly changed.

The Chimaera is perhaps the most ’90s-looking silhouette of TVR’s mid-90s catalogue. That’s not to say it’s aged badly, and it’s certainly not a badlooking car, but you wouldn’t be fooling anyone if you tried to say it was a decade younger.

However, on this particular 1997 example, the interior is the real show-stealer. The rather fetching dark blue/cream leather trim matches very nicely with the manly metal on the gearstick,

dials and so on. A Pioneer CD player takes centre stage, while electric windows, mirrors and remote central locking are also included in the TVR’s electrical stakes. All of this is sheltered by a new roof, while a new chassis has also been installed and wax-oiled.

With 39,555 miles on the clock, this Chimaera is already a low-mile example of the breed, but considering the recent renovations, this could be the closest thing to a new Chimaera on the market. In addition, it seems as though Chimaeras and the closely related Griffith have earned a reputation as the most reliable models ever produced by TVR. Of course, that’s about as much use as calling Don’t Stop Movin’ S Club’s best song; ultimately, you’re only saying that it’s slightly less of a headache than anything else they released – in my humble opinion, of course.

However, many of the Chimaera’s problems relate to the chassis rusting on its ‘outriggers’ – the main outer rails of the chassis – and since this car features a fresh one, this shouldn’t be a problem for the foreseeable future. Another advantage over other models is its ride quality and driveability. The Chimaera was conceived for

Have CD player, will travel...

long-distance touring. As such, it features softer suspension and improved ride quality over the Griffith. It also has more space inside.

That’s not to say it’s not still a sportscar – it’s very difficult to stop yourself going quickly with a kerb weight of slightly over a tonne and 240bhp from a 4.0 V8.

This particular example is for sale for £13,950 at Continental Cars in Reading, with a new MOT provided on purchase.

Obviously, it’s a bit elderly, meaning it won’t always work perfectly, and a degree of mechanical knowledge would be preferable to stave off the more expensive bills. However, when all’s going well, few things are more satisfying than a V8 drop-top on a B-road.

Back to the ’90s – and doing so in style

CarDealerMag.co.uk | 87

MARKET INSIGHT.

..in association with ASE-global.com

New car market is difficult despite an improving economy Shares in listed motor retail groups had a mixed time of it in August, says Adam Cottam

I

n the relatively quiet month of August, share price performance was varied across the UK motor retail groups.

The UK economy was showing signs of improvement, as dealers started building the order banks for the crucial September registration period.

Pendragon, Marshall and Lookers all posted strong H1 results and there was some evidence of the new car market drop-off that many dealers are experiencing and expecting to get worse.

Although a number of transactions concluded in the wider industry, none involved listed businesses. It was notable that more South African investment in the UK was made as Motus Corporation bought Pentagon.

Share price performance Shares in listed motor retail groups had a mixed month with some falling backwards and others making gains on the previous month.

ASE continues to hear that the private new car market is proving challenging for retailers, and there are no expectations that this will change in the short term. It will prove to be a very interesting September registration period given that H2 profitability will be even more reliant on trade generated by the plate change.

The wider economy is showing signs of more positivity, however. The FTSE 100 index has improved again, and there are encouraging signs the second half of the year has started strongly with robust manufacturing data being released at

Share price movement from January 3 to August 31, 2017

Share price movement from January 3 to July 31, 2017

Pendragon

102.4%

96.0%

Vertu

100.0%

100.6%

Lookers

93.4%

93.8%

Inchcape

118.6%

114.4%

Cambria

100.0%

106.3%

Caffyns

91.4%

95.2%

Marshall

115.6%

104.0%

the end of the month. Mortgage lending is at its highest level since 2008 indicating that the post-referendum slump has yet to take hold, which begs the question: ‘Will it ever?’ Of course, the answer to that very much depends on the outcome of the negotiations that are currently under way.

Financial performance Pendragon released H1 results which evidenced the new car market softening that many in the industry are talking about. New gross profit fell back £5.4 million on the same period last year and the group is tracking the five per cent fall we’ve seen in the wider market.

The fall in gross profit has been offset by a strong performance in aftersales, however, where

gross profit rose by £5.3 million. Pendragon’s used car strategy is working well as gross profit has increased by £10 million in the period.

Four new used car stores have been opened in the first half of the year with many more set to be unveiled before the end of 2017. This shows the company is progressing well with the strategy set out in the 2016 financial statements.

Marshall reported half-year results of their own with underlying profit up by 32.9 per cent.

The Ridgeway contribution of £5.4 million to the overall result shows this is now fully bedded in and delivering earnings. Like-for-like growth in revenue of 6.7 per cent was seen, which included LFL growth in aftersales revenue of 2.3 per cent.

In terms of volume, new was 0.4 per cent down which significantly outperformed the wider market drop of five per cent. Used volumes were up 5.8 per cent in the period.

H1 results were also posted by Lookers which gave a very positive picture of their current performance. Revenue (excluding parts) was up five per cent and profit before tax was also up by 18 per cent on continuing operations.

Like Marshall, they bucked the trend on new with new revenue growth of seven per cent like-for-like. Used gross profit increased 13 per cent driven by a seven per cent increase in used revenue. Encouragingly, margins have stayed strong despite the volume growth indicating the underlying business model is healthy.

In aftersales, gross profit was up seven per cent following a rise of four per cent in revenues.

Who is Adam Cottam?

Adam is corporate finance executive at dealer profitability specialist ASE plc. You can read his column here every month.

88 | CarDealerMag.co.uk

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CarDealerMag.co.uk | 89

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RECRUITMENT. VOLVO

Vertu gets new finance and insurance director Steve Rowe is a welcome addition to the senior team, says CEO

V

Newly created role for Nicola VOLVO Car UK has appointed a new customer experience development manager.

Nicola Langley, pictured, has been chosen to fill the newly created role, in which her job will be to make sure that Volvo customers receive a ‘premium experience to match the company’s new range of premium cars’.

Before taking the position with Volvo, Langley was customer experience director at business telecommunications company Onecom.

She has also held managerial roles at Vodafone and Virgin Media.

Langley will work closely with Volvo’s training and customer relations departments to ensure that all of the company’s customers receive a high level of service. ‘This is an incredibly exciting time to be joining Volvo,’ she said.

ertu Motors has strengthened its senior management team with the appointment of Steve Rowe as finance and insurance director.

Rowe joins the motor retailer from Pendragon.

Starting as a business manager working across a number of dealerships, Rowe went on to hold senior positions there before being appointed as group finance and insurance director.

In addition to winning several manufacturer awards for performance, Rowe was also named as the winner of the Judges’ Award for Outstanding Finance and Insurance Performance at the inaugural Car Finance Awards in 2016.

In his new role, Rowe, on the right in our picture, will work to ensure the best possible outcomes for customers and partners, in addition to supporting the development of the Vertu group and its dealerships.

He said: ‘I’m exceptionally pleased to join Vertu Motors. Vertu has a reputation in the industry as really valuing its colleagues and investing in

their development, which is something I am also passionate about. I am looking forward to working with my fellow directors and colleagues at a dealership level to develop our strategy and ensure that Vertu customers receive the very best possible retail experience.’

Robert Forrester, pictured left, chief executive at Vertu Motors, said: ‘Steve is a welcome addition to the senior team at Vertu Motors. He is one of the best in the industry and a real expert.’

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DATA FILE.

James Litton

TRADER TALES

Survey findings reveal a sad fall from grace

B

ack in 2003, I was selling Saab cars – and it was no picnic. Saab UK had tried its best to inject some enthusiasm into the network the previous year with the launch of the 9-3 Sport Saloon, but nobody – including the customers – was being fooled that the car was anything other than a Vauxhall Vectra with some different badges.

With that in mind, I went to join a former colleague in the BMW network. I cannot begin to describe the difference in every area of the business.

The cars, systems, professionalism, innovation and much more besides were so superior that the only analogy I can provide is that of a Sunday league footballer gaining a transfer to Real Madrid.

I had always used a Saab 9-5 Aero and thought that no car on the planet would be so comfortable, fast and spacious, but on my first day I was given an E39 530i Sport and it was like someone giving me a fillet steak after I’d endured a staple diet of Quorn burgers until that point.

The standards of the dealership were of the highest order.

After a year or so, I became the used car manager. The audits were both intense and demanding and taught me amazing fundamental disciplines I still use to this day.

I was really impressed with the attitude towards customer goodwill.

It was not unusual for BMW UK to contribute a significant amount of money to the repair of an M-powered car (provided the BMW service history was intact), even if the car was years out of warranty.

I therefore find it very sad that according to the latest NFDA survey, this once infallible organisation now seems to be very out of favour with its network.

During my time with the brand, our group often achieved a four per cent return on sales. In the 2017 summer survey, BMW occupies 21st spot in the category ‘how satisfied are you with the current profit return from representing your franchise?’ – behind the likes of Seat and Mazda.

Back in the mid-00s, while the Chris Bangle-inspired cars did pose something of a challenge compared with their nearperfect predecessors, the need to pre-register a large number of vehicles would never have arisen.

X5 was on a year-long waiting list and the E46 3er dominated both the corporate and retail markets.

However, the latest NFDA survey sees BMW ahead of only Renault, Vauxhall and Nissan in the category ‘how satisfied are you with your manufacturer’s inducement to self-register vehicles?’

I am sure there are lots of reasons behind this fall from grace, but I am rooting for you, BMW, to get it together.

‘I am rooting for you, BMW, to get it together.’

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

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I wasn’t the person for this type of task...

T

his is a confession that dates back more than 30 years but it’s time I got it off my chest. It even predates computers – that’s how far back I’m going with this one – and into a world full of typewriters.

Now, I realise many people reading this might never even have seen one in a modern working environment, but back in the mid-1980s they were everywhere, with their messy, inky ribbons, sheets of horrible carbon paper and of course the little bottles of Tipp-Ex or Liquid Paper required to correct the many mistakes we made.

I found typewriters incredibly difficult to use. I was all fingers and thumbs, and whenever I had to work on a document it always turned into a dreadful mess.

I wasn’t alone in this. After all, we were car salesmen, not secretaries (I know, outdated sexist viewpoint), so not only were we hopeless at typing, we resented the fact that we had to do it at all.

One day in about 1985 I was working late in the showroom on a document I had to present to a meeting the following day.

I wasn’t enjoying it and had even treated myself to a couple of cans of Double Diamond (ask your dad) from the offlicence down the road to help me deal with the pain.

They went down a treat – but did absolutely nothing for my typing skills.

As I ploughed away, with my error-strewn effort looking more like a crappy piece of homework than a professional business document, I was becoming more and more agitated. And then I snapped.

I simply picked the typewriter up and threw it across the room. Or at least that’s what I intended to do.

Instead, it went straight through a window near my desk and landed on a smallish patch of grass outside.

Now I was panicking. Thankfully, although there was broken glass everywhere, nobody was around and the typewriter was undamaged. Once I’d wiped a few bits of soil and turf from it, it was restored to its position on the desk. What about the window, though?

Hah! Blame the local hooligans, I thought. So, most of the glass that had landed outside was carefully chucked back through the broken window into the showroom – along with half a brick that someone had handily left lying around. Then I went home.

And the meeting did go ahead the following day – with a handwritten report submitted by yours truly.

‘My errorstrewn effort looked like a crappy bit of homework.’

Tell us your story

Have you something to confess? Email our head of editorial (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

PCP problems ahead?

To answer that question, let’s find out what’s changed since their launch, says Paul Smith

P

CP-based vehicle sales have experienced an almost fourfold increase in the past five years, while total car borrowing has ballooned from £11 billion in 2009 to £31.6 billion in 2016.

The lion’s share, nearly £26 billion of that total car borrowing, was via PCP arrangements.

Because 82 per cent of new cars sold rely on PCPs, you could say this form of finance has virtually single-handedly enabled new car sales to continue rising for five years on the trot.

But is this relatively ‘easy money’ storing up problems for dealers and the market as a whole?

In attempting to answer this question, it’s worth looking at the origins of PCPs. I remember that at their birth more than 15 years ago, they were a good option for people with hefty initial deposits at their disposal and wanting to get into a new car every year or two.

Most PCPs were set up for 12- or 24-month periods and were designed so that only a small uplift would be needed to get you into the next new car (via a new PCP). They also required rigorous assessment of mileage usage and the car’s residual guaranteed future value (GFV) that you would be trading in fairly quickly.

So how much of the above has changed? For a start, most PCPs are now set up for three or even four years, making end-of-term GFV valuations trickier. Secondly, in their quest for low monthly payments, many consumers understate their average annual mileage.

You only have to look at the numbers: if you’ve said you’ll do 10,000 miles per year, every year, but you do 15,000, that’s an extra 15,000 miles over a three-year contract. It’s not uncommon to have to pay up to 15p per additional mile – which is an extra £2,250 at contract termination.

And if you’ve damaged the car during the

longer period of running it, the cost of getting into the next car via a new PCP increases again.

The variables – and therefore risks – at the end of PCPs have suddenly risen markedly.

Another potential problem appears to be linked to declining used car values, as more new cars are being bought and then handed back within two to three years – suppressing trade-in values of some used car models as supply begins to exceed demand.

Will this also feed through to GFVs? If this turns out to be the case, it could suddenly start to become prohibitively expensive to get into the next new vehicle – creating a problem for finance houses and dealers alike.

The fact that inflation levels are now pushing three per cent while income increases aren’t keeping pace creates a further risk that more borrowers may feel unable to take the plunge into a new car, or worse – they may be unable to keep up with existing monthly payments.

Both the Bank of England and the Financial Conduct Authority (FCA) flagged up concerns about rising consumer debt – particularly car loans – earlier this year. The FCA went as far as launching a yet-to-report investigation to determine if lenders truly understand the PCP’s explicit risk exposure to a vehicle’s GFV. However,

they consider that ‘direct consumer risk exposure may be more limited, but may be heightened where there has been an inadequate assessment of affordability and/or a lack of clarity for the consumer in their understanding of the contract’.

So, it seems both the Bank and the FCA are all over this. The other economic indicator to look out for is delinquency levels – in other words, finance deals that go bad because people who buy cars with them can no longer afford to keep up the payments or stop prioritising them (in favour of paying other debts). Having said that, in the UK the delinquency rate for PCPs is still very low at roughly 0.08 per cent Part of the story behind the fact that consumer debt levels are building is that this trend follows a lengthy period of low interest rates – making these loans highly affordable. It also follows a very long period in which consumers have been paying credit card bills and other relatively expensive debts, so we’re only now seeing an uptick in borrowing from that lower base.

Macro-economic trends aside, what is a dealership to do in the car finance arena with a cloud hanging over PCPs now? One DP I spoke to recently said that he’s seen a major upswing in personal contract hire-based (PCH) new car sales – and the Leasing Broker Federation verifies this.

So, is a switch to PCH or at least a healthier mix of PCH, PCP and hire purchase-based car sales a good idea?

Like all these things, it should be led by customer need. So, it’s crucial that customer factfind and product suitability work has been done rigorously to ensure customers are being fitted to the leasing product that best suits them.

And it’s possible that PCPs might not command quite such a large slice of the new car leasing market in future.

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

15/12/2016 09:56

LONG-TERMERS. LATEST FROM THE FLEET...

Suzuki Swift We become acquainted with our new long-termer – it’s Swift by name, but is it swift by nature?

by SIMON DAVIS @SimonDavisNZ

W

hen I caught my first glimpse of the press images for the new Suzuki Swift, I have to admit that I was disappointed. I thought that Suzuki had taken what was a cute and attractive supermini and absolutely bottled it. I held on to this belief right up until I arrived at the model launch in Monaco back in March – and then I changed my mind.

The reason? In the metal, it’s actually quite an attractive little thing. To top things off, I thought the new model was a cracking car to drive, too.

So, when I found out that Suzuki would be supplying us with a Swift as a long-termer, I was extremely eager to find out if the car I had grown to be quite fond of in Monaco was as impressive back on home soil.

One of the things I liked most about the Swift when I drove it on the launch was the fact that to me, it felt like a go-kart, egging you on to really chuck it into corners and work the peppy little engine hard.

After sliding down into the comfortable, supportive seats, I was happy to find that this sense of eagerness had not just been a figment of my imagination that was spurred on by the immense scenery offered up by southern France.

Now, let’s get one thing straight. While the little Suzuki might be Swift by name, it certainly isn’t swift by nature. Our SZ5 model – that’s the top-of-the-line one – is fitted with a 1.2-litre petrol engine that develops a meagre 89bhp and 120Nm of torque. This allows for a 0-60mph time of 12.4 seconds, and a top speed of just 106mph.

However, while it may have all the get up and go of a glacier, it’s still very entertaining. The steering has a healthy weight to it, and because the engine is so lacking in power, you can really work the five-speed manual gearbox to keep the revs up and maintain your speed through the corners. It’s even got an all-wheel-drive system, which makes it feel even more planted.

The only time the lack of power becomes a bit of a problem is on the motorway. There’s very little there to help you pick up speed, and dropping down a couple of gears really causes the four-cylinder engine to make itself heard. If you’re

The boot space isn’t class-leading but there’s more than enough room for Simon’s cornflakes!

THE KNOWLEDGE Model: Suzuki Swift 1.2 SZ5 SHVS Dualjet 4WD Price: £16,149 Engine: 1.2-litre, four-cylinder petrol Power: 89bhp Torque: 120Nm Max speed: 106mph 0-60mph: 12.4 seconds MPG: 62.8 Emissions: 101g/km Mileage (to date): 4,043 THIS MONTH’S HIGHLIGHT: Realising the Swift works just as well in the south of England as it does in the south of France. planning on overtaking out on a regular road, you’d better make sure you’ve got plenty of space in front of you, as it’s going to take some time.

As this is the top-spec SZ5 model, I should probably talk about the toys on offer. There’s a touchscreen infotainment system with satellite navigation, DAB radio, Bluetooth and smartphone

connectivity, as well as 16-inch alloys and rear privacy glass. Not bad for the £16,149 asking price of our long-termer.

While our car’s exterior may look rather funky thanks to its contrasting silver roof and wing mirrors, the same can’t really be said of the interior. The cabin is basic in its design, with a good deal of scratchy plastic used on multiple surfaces throughout. You certainly get the sense that this is a car that has been designed to be cheap and cheerful, as opposed to plush and upmarket. This certainly isn’t a pretentious car, which is a good thing in my mind.

As far as boot space is concerned, our Swift offers up 254 litres of storage space – which is by no means class-leading.

However, it more than suits the needs of yours truly, and managed to swallow up a decent-sized weekly shop with room to spare.

So, that just about covers all the main points of our new long-termer. At the moment, the Swift remains firmly in my good books. I can definitely say that I’m looking forward to spending more time with it over the coming weeks and months.

CarDealerMag.co.uk | 95

LONG-TERMERS. LATEST FROM THE FLEET...

Audi A6 Avant James’s time with KX17YVY is coming to an end – and he’ll miss its air of comfort and relaxation.

by JAMES BAGGOTT @CarDealerEd

A

s my time with ‘my’ Audi A6 Avant draws to a close, I’m beginning to wonder just what life will be like without it. You see, I’ve got a little too used to the massive boot swallowing everything from my ashamed-to-admit-it huge load for the bottle bank, to a weekend’s worth of luggage, food and accessories for a family trip to Wales.

But it’s not just its ability to consume all that I throw inside it that I’ll miss. Above all else, what will really be noticeable by its absence is the peace and quiet that journeys inside it bring.

It’s not only helped by some fantastic sound deadening, but also the fact that one of my colleagues nabbed the whistling roof bars for a jaunt in an RS6 and didn’t refit them.

Couple that with the wonderfully plush air suspension and it means time spent inside the A6 is often time spent relaxing. I find myself driving more slowly, settling back to some Radio 4 debate and then wafting along in lane one rather than hustling to my destinations in the fast lane.

My passengers seem more relaxed too. The optional sports seats in the front are superbly supportive and never numb limbs like others can.

They seem to love the A6 just as much as I do.

One of our recently-hired apprentices grabbed a lift in it recently and was shocked at just how brisk the 3.0-litre diesel is. With 268bhp, it certainly punts along at pace when needs be, especially when you put the excellent S tronic gearbox into ‘sport’ mode. In fact, I think that

THE KNOWLEDGE Model: Audi A6 Avant Black Edition S tronic Price: £63,045 (with options) Engine: 3.0-litre, TDI Power: 268bhp Torque: 580Nm Max speed: 155mph 0-60mph: 5.5 seconds MPG (combined): 53.3 Emissions: 138g/km Mileage (to date): 8,476 THIS MONTH’S HIGHLIGHT: Shoving yet more and more stuff in the back and rejoicing at the boot still closing.

96 | CarDealerMag.co.uk

James and his young daughter, above, took full advantage of the Audi’s load-lugging capabilities

gearbox really is the making of this car. Quick to shift and incredibly smooth, it matches the powerplant perfectly.

The Avant still gets plenty of admiring glances at petrol stations and car parks too. The Gotland Green paintwork was a classic choice. I’ll give my colleague who picked it his dues there, because it looks simply stunning on the sleek lines of the Avant. Matched to the sharp grey alloys, it looks just as handsome as the RS6 that was driving away with my roofbars on top a week or so ago.

But back to that load-lugging capability. A family weekend break to Wales with my sixyear-old daughter meant the Audi’s load bay was seriously put to the test.

Not only was the standard barbecue, food and beer packed in, but the little one insisted on taking most of her toys, including a scooter, many bears, some toy horses (naturally) and a clothes bag she’d packed herself. Thankfully, the Audi passed the test with flying colours. I mean if Bertie the Bear and his 45 cousins hadn’t been able to squeeze in for the ride, all hell would have broken loose. Thankfully the sat nav worked brilliantly on the way. I love the detail on the screen and the fact it counts down to the next services with icons that let you know what sort

of fuel station you’ll find and some information about the amenities. Vital stats when planning comfort breaks for a six-year-old and, er, dad.

I did make the mistake at one point, however, of explaining that the little 87 in the corner of the screen was the number of miles left to travel. This did mean I avoided the ‘are we nearly there yets’ but instead was subjected to shouts of ‘We’ve got ONLY 86 miles to go’ and so on…

Remember what I was saying about relaxation?

Despite the three-and-a-half-hour journey to Pembrokeshire actually taking seven long hours, I arrived for the break relatively stress-free.

Audi have informed me the trusty A6 will be heading back home soon – in fact, I think we have mere weeks left together. In that time, though, I’ll certainly be making sure I get as many stress-free trips in as possible – because all too soon I’ll be back to reality.

OTHER CARS WE’RE DRIVING

Mazda MX-5 RF Mileage: 10,282 Car Dealer Dave has been enjoying some time behind the wheel of VN66 ZHZ and although he’s been finding it a blast on the B roads near his home, he’s not so keen on it for motorway journeys.

Ford Edge It’s a big car and Andy’s a big fan... but he hasn’t fallen head over heels in love with it just yet.

by ANDY ENTWISTLE @CarDealerAndy

A

recent business trip to the States kindled my initial love of the Edge, and so our new long-termer arrived a few months later after I requested we try to get one out of Ford.

Although the Edge is pretty new to the UK, it’s been on sale in America for a while; in fact it’s the biggest-selling SUV in the States.

Now, like the Mustang, it’s been Anglicised and is Ford’s ‘premium’ crossover, aimed at buyers who might otherwise be tempted by an Audi Q5 or BMW X3.

It’s based on the same platform as the Mondeo, S-Max and Galaxy and this becomes visibly obvious when you first sit in the car. The cabin is a carbon copy of the Galaxy we had just handed back and the Mondeo before that.

Now this may not be a bad thing if you are trying to sell these to current Ford customers, but buyers of premium vehicles expect something a little more, well, premium.

At 4.8 metres long and weighing in at two tonnes, this car is big and it feels big too. On its home territory, it blended in, but on the UK’s smaller roads, you notice the size. However, with this comes superb cabin space and a huge boot.

A recent journey to a festival, loaded with people and provisions, highlighted one very welcome point: the Edge is comfortable.

Not only does it have a nice comfy set of seats, its whole set-up is tuned more towards comfort than sport, which is welcome when all the offerings from Europe seem to be intent on making these SUVs sporty alternatives.

Here is a hint, guys. If we want something sporty we’ll buy a sports car or saloon. An SUV isn’t bought for throwing round the bends, it should be comfortable and easy to drive and this is where I think the Edge has, well, the edge, on the likes of the Q5 and Discovery Sport.

The Edge has real presence on the road. Ours,

Seat Ateca

Caterham Seven

Mileage: 10,983

Mileage: 6,829

The Seat Ateca is in danger of turning Baize Group’s head of TV Cheryl into a snob. Little things that never seemed to matter before now mean a lot, from cup holders to light puddles.

Life with the Caterham is sweet. Sure, it’s clearly not as practical as a ‘normal’ road car, but you learn to live with the drawbacks, such as a small boot and a roof that’s a bit of a faff to put on.

Andy first drove the Ford Edge in the States and is now behind the wheel of this fine specimen

THE KNOWLEDGE Ford Edge £42,790 2.0 TDCi 207bhp 450Nm 131mph 9.4 seconds 47.9 152g/km 3,500

Model: Price (as tested): Engine: Power: Torque: Max speed: 0-60mph: MPG (combined): Emissions: Mileage (to date): THIS MONTH’S HIGHLIGHT: Renewing my acquaintance with a quality car from the Blue Oval.

in black with gun-metal alloys, looks like the ones the cops use in the USA, something I can’t help but secretly enjoy, and I’m already contemplating roof lights. And it’s not lacking in kit, with a full complement of heated and cooled seats, a fulllength sunroof and all the toys you would expect.

So, what don’t we like on first impressions?

The Ford in-car tech is still not quite right and I’d expect better from them.

The nav in our last three cars has struggled at times, and during my first outing in the Edge, I got stranded in deepest Wiltshire when the nav initially froze, then seemed to be playing a slowmotion replay of my journey, but some 10 miles behind me. Given that modern society has lost all ability to travel without a sat nav, I was well and truly stuck until I found a phone signal and switched to my trusty iPhone. If Ford can resolve the bugs in their tech and navigation system, this will be a big step forward for me.

In the few weeks it’s been with us, the Edge won a lot of admirers, but I have yet to really love it the way I did our long-term Sportage. However I already have a huge amount of respect for this car and there’s plenty of time to see if this will blossom into a full loving relationship.

CarDealerMag.co.uk | 97

BAGGOTT.

I

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

War on dirty diesels must target those doing most damage

’m getting sick and tired of following cars down the road that belch out huge plumes of dirty, black smoke. Watching the clouds puff out of their exhaust pipes, billowing power station-like veils of dirt and disease into the atmosphere as their drivers sit there picking their noses makes my blood boil.

It’s about time we refocused this inevitable war on diesel to where it really matters and made driving a car in such a state as socially unacceptable as getting behind the wheel after five pints or texting your other half while driving down a motorway.

The battle against the black pump is intensifying every week – and the mainstream media is latching on to everything it can to give diesel another kicking.

While not altogether unwarranted, these efforts do need retargeting at the right culprits.

We all know the real killers aren’t the new diesel offerings you see sitting before you in your showrooms – they’re cleaner than ever and still suit a certain type of driver – it’s those disgusting old cars and vans that we all follow down the road, piping out harmful gases, that need removing.

I pass these vehicles with a look of utter disgust on my face and try to give the owners a stern glare of contempt usually only reserved for those vape-smoking weirdos who insist on exhaling huge expanses of sick, strawberry-smelling smoke from their lungs as you walk behind them.

There’s a special place in hell set aside for these people – and a slightly hotter and more uncomfortable spot for those who opt for the bubblegum flavour, but I digress.

These filthy old diesel cars should be immediately stopped and removed from the road. We need a national hotline to report suspects, just like we have for drink drivers, and police forces or local councils should have the power to pitch up at the owner’s house and test them on the spot. A rectification order should be issued and if it’s not fixed within days then the offending vehicle should be crushed.

(I’d like to see something similar for the bubblegum vapers, but that’s a little bit ‘North Korean’.)

But how are these drivers supposed to be caught when there are so few police officers on our roads? I recently carried out a Freedom of Information investigation for the Press Association, asking every force in the UK how many road traffic officers they employ now, compared with 10 years ago. The figures were shocking. Officer numbers have been slashed by 30 per cent across the country, with some forces down 80 per cent – and one force admitting to having none.

Who is James Baggott?

Not only does this make it harder to catch dangerous drivers, middle-lane hoggers and mobile phone users behind the wheel, it also means that the chance of spotting a dirty diesel on the road is dramatically reduced, too.

I was recently asked to talk on Radio 5 Live’s Wake Up To Money programme about Ford’s announcement that it was introducing a scrappage scheme.

The presenters wanted to know if I thought the scheme was a good idea. Damn right it is. The government has dragged its heels with a decision to introduce a diesel scrappage scheme, I said, and I fear that worries of being seen to bolster an industry that in 2016 had its best year ever had halted it doing what was needed for the environment.

That’s the real mistake. This isn’t about sales – this is about our health, our children’s health and their children’s health.

We need to take steps now to remove the most polluting

James Baggott ‘Don’t get me wrong.

AGAINST OUR BETTER JUDGMENT, WE GIVE OUR CEO THE LAST WORD EACH MONTH

I like burning fuel as much as the next man’

cars from our roads and that’s not every diesel – it’s those diesels that were built to Euro 1, 2, 3 & 4 standards, or those that haven’t been maintained properly. A huge cloud of black smoke from a car is a clear sign it needs crushing – but even those less obvious culprits need to be tackled.

That’s why I am so pleased to see the industry take matters into its own hands. Yes, many of these ‘scrappage schemes’ are elaborate marketing ploys, but when they genuinely take the old, dirty cars and crush them, they have to be applauded.

I do wonder how many people who are driving around in an old diesel banger worth a few hundred pounds have the spare cash to buy a brand-new car – they’re probably sticking with the chimney for a reason – but that’s a problem for the manufacturers to worry about, not me.

Don’t get me wrong. I like burning fuel as much as the next man. I put lots of the stuff through my own cars – and think a world without internal combustion, with the noises, smells and joy that come with it, would be a much sadder place.

However, that doesn’t give us a reason to turn a blind eye to blatant pollution – this isn’t the United States, after all.

As an industry, we need to educate the masses on which diesels are bad and why, and take positive action to remove them. And that might mean something a little more serious than me giving drivers the death stare as I overtake...

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

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CM

MY

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CMY

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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