Car Dealer Magazine: Issue 117

CDX: THE TOPICS TAKING CENTRE STAGE AT UK’S LEADING MOTOR TRADE EXPO

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Issue 117 | December 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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Welcome.

THIS month the Car Dealer team have been mainly out of the office.

Like really, really out of the office.

If you’ve tried emailing James, you might have thought I finally gave him the push and he was sailing around the Caribbean on his private yacht. Unfortunately, things aren’t quite that good yet and he was actually WORKING. As you’ll see, he’s been going back and forth between here and the Middle East and Asia – first to see a new dealership in South Korea, then to try a Maserati in Dubai and then to find out about Mazdas in Japan.

I’ve been out too, although not quite as much – mainly exploring Tokyo in the name of motoring but also to drive the new Nissan Leaf. The main excuse for our trips to Japan, though, was the Tokyo Motor Show.

While there was a lot to choose from – and almost all of them were electric – there was one car that stood out from all of the others.

The star of the show is also our cover star: the Honda Sports EV. It followed on from the Urban EV Concept at Frankfurt and stole the hearts of everyone who saw it.

Its sleek lines, retro styling and cute cartoonish face all make the Sports EV extremely appealing. However, what isn’t there to like about a sporty two-seater that could become the next S2000?

As it was the brand’s local motor show, Honda really went all out. Alongside the Sports EV was also the Honda Riding Assist-e, pictured above – a motorcycle that pulls on the manufacturer’s robotics R&D and can balance itself. While Tokyo is usually the show that brings out the weird and wonderful from all car makers’ arsenals, this certainly demonstrates that Honda is further pushing the

boundaries of what a vehicle can do. As James was out with Mazda, he was able to get early access to the brand’s new design language and an interview with UK boss Jeremy Thomson. Meanwhile, I was finding out about Nissan’s latest electric vehicle, all of which you can read about in our Far East Special, starting on page 46.

There was plenty more to see, so check out the full feature for all of the details.

We’ve got a packed-out Forecourt section in this month’s magazine too, with a full set of new B-segment SUVs reviewed, the new Porsche Cayenne and Maserati Levante.

While all this sounds very rosy, it’s well documented that dealers are under increasing pressure in this current climate of economic uncertainty. Turn to page 6 where I take a look into the thorny matter.

Now, it’s only days until the Used Car Awards so everything in Car Dealer Towers is going a little bit mad.

However, you’ll have noticed last month we launched CDX 2018 and that’s what I’m most excited to bring you in this edition. We can now announce the full list of topics we’ll be covering on the Live Stage – see page 16.

If you think you could add to these, get in touch with me via my email address on this page. Alternatively, maybe you’ve got some questions you’d like us to ask the panels – I want to hear about those too!

As always, I hope you enjoy the issue.

Rebecca Chaplin Head of Editorial CarDealerMag.co.uk | 03

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Far East Special Reports and pictures from the Tokyo Motor Show and lots more besides

UK’s first ‘used’ Chiron set to make £1.1m profit

ISSUE 117 I DECEMBER 2017

Dashboard.

A Perfect Partnership Around the UK CDX Live Stage programme Rebecca Chaplin Big Mike Feedback Around the World So You Wanna Be A Car Dealer?

Finance

10 12 16 25 27 28 30 32 34

Features.

Far East Special Bangers4Ben

Data File.

Car Dealer Club The Statistics Auctions Taking Stock A Global View Market Insight

Forecourt.

Maserati Levante S GranSport Porsche Cayenne Kia Stonic

38 40 42

Recruitment Suppliers Guide Key Notes with Traka Long-termers

46 66 80 82 84 85 86 88 91 92 94 95

We test Maserati’s Levante S GranSport

Mazda UK MD Jeremy Thomson interviewed

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.

The UK’s biggest automotive trade expo features the Live Stage, breakout sessions, workshops and much more.

Planning for our 2018 event is well under way – turn to page 16.

CarDealerMag.co.uk | 05

Dashboard.

THE BIG STORY

Are we heading into the

Rebecca Chaplin examines the implications of falling car sales following the massive drop in consumer confidence and the ever-present spectre of Brexit

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he Big British Car Dealer Crash has been a looming concern this month, with speculation by the national press that ‘buyers are in a strong position to drive a hard bargain’.

Reports from dealers and industry experts would suggest that sales will get worse before they get better.

The low value of the pound means there isn’t the room to manoeuvre that there once was, but with pre-registration rife, dealers are still being forced to cut prices.

The severe drop in consumer confidence has hit the industry hard though, with confusion over what cars are right to buy and financial influences both impacting on buying decisions.

Research by AA Cars revealed that 21 per cent of drivers are concerned their current car will lose value owing to the ban on new diesel and petrol cars that will be coming into effect in 2040, with nine per cent stating that they are now more concerned about the environmental impact of their cars. Add to that incentives to scrap your ‘dirty diesel’ and it’s no wonder car buyers are confused about how to spend their cash.

06 | CarDealerMag.co.uk

However, that comes hand in hand with the less than surprising news that drivers don’t know what emissions data actually means. New research by the RAC, based on a sample of 2,200 motorists, found that 38 per cent hadn’t heard of the Euro emissions classification system, while 64 per cent either don’t know what category their own vehicle fits into or are unsure of it.

Further strain has been added to consumers’ bank balances with the Bank of England raising interest rates by 0.25 per cent at the beginning of November, meaning less disposable cash for UK households.

That’s all without going into the questions that remain in buyers’ minds over Britain’s impending exit from the EU. Unsurprisingly, this has been tough on the motor trade, and Pendragon issued a warning that full-year profits were expected to fall because of the drop in consumer confidence. This echoes Lookers’ announcement in August, when chief executive Andy Bruce revealed that it was seeing a softening in the car market.

However, this month Lookers reported that profits and turnover had improved in Q3 thanks

to manufacturers reducing targets. ‘We are pleased to report that our key manufacturer partners recognise the more difficult trading environment and are taking pragmatic and supportive actions such as reducing targets, increasing tactical incentives and helping us to reduce operating costs, which will offset the effect of lower new car volumes going forward,’ the statement read.

ASE Global chairman Mike Jones reported on September’s dealer profitability, saying: ‘We can see the effect of many franchises reducing retailer targets within the results for September. Whilst volumes did not match the prior year, profitability was strong, reflecting the revision in many targets and the fact that some franchises have enabled retailers to recognise annual bonuses.’

The Society of Motor Manufacturers and Traders has now revised its UK new car registration predictions for the year, days before October’s figures proved to be the seventh month of decline. It now reckons that registrations will be 29,000 units (4.7 per cent) down on 2016’s, at 2.565m. More worryingly, the motor trade body expects that this trend will

What does the financial future hold?

Ben Garside: p35

perfect storm?

‘We can see the effect of many franchises reducing retailer targets within the results for September.’

Mike Jones, ASE Global chairman

continue into 2019, with forecasts that in two years sales will be 300,000 lower than last year’s record-breaking figure.

Franchised dealers have spoken to Car Dealer, reporting that although dealer profitability remains steady with certain manufacturers, the pressure remains on them, with more pre-registrations and spending on improving showrooms expected from dealerships.

The exacerbation by Brexit remains, though, particularly for car makers. Importer Hyundai UK’s CEO and chairman, Tony Whitehorn, told us that its costs were rising and that this couldn’t all be passed on to buyers.

‘It’s going to be a big challenge for us next year,’ he said. ‘I think what you’re going to get is a number of manufacturers, which is already happening, who are almost vacating the UK. They’re almost going: “This is no longer Treasure Island; I’m not making as much money out of this market as I used to.”

‘I can’t pass all of these price increases on to the customer. The average manufacturer has increased their prices by six per cent.’

However, according to Whitehorn, Hyundai

remains ‘100 per cent’ committed to the UK market, and he explained that the brand was bringing ‘more cars to market now than ever before.’ He said: ‘We will increase our sales next year, despite the market.’

However, ‘Treasure Island’ isn’t just evading those who import cars, as on November 9 Honda, Ford and Vauxhall entered a submission to Parliament urging a transition deal post-Brexit.

Honda admitted that if we revert to World Trade Organisation rules after EU ‘Exit Day’– which Theresa May wants to set as 11pm on March 29, 2019 – the 10 per cent export tariff on its British-built cars would be disastrous for it.

‘A 10 per cent tariff would make our vehicles uncompetitive, and would impose costs we cannot afford to absorb,’ Honda said in the submission to Parliament’s business committee.

‘Tying up capital in mitigating customs risk would reduce the amount of resource we could dedicate to introducing new hybrid and electric vehicles into the UK marketplace.’

It’s the perfect storm for car dealers if ever we saw one, and we’ll soon find out how close we are to a tipping point.

‘A 10 per cent tariff would make our vehicles uncompetitive.’

Honda’s submission to Parliament’s business committee

‘It’s going to be a big challenge for us next year.’

Tony Whitehorn, Hyundai UK CEO and chairman CarDealerMag.co.uk | 07

Dashboard.

What’s the latest on registrations?

The statistics: p82 MARKET

Used values slide as volumes rise

IN THE BLACK

UK’s first ‘used’ Chiron set to make £1.1m profit for its seller A SAVVY supercar owner is set to cash in with a cool £1.1 million profit when he sells his nearly new, 1,000mile Bugatti Chiron – the first ‘used’ example to be offered in the UK. The 261mph supercar has soared in value to £3.6 million in just four months – an increase of £1.1 million over its list price of £2.5 million.

On sale at specialist supercar dealer Romans International in Banstead, Surrey, the Bugatti Chiron is the most powerful, fastest,

most luxurious and most exclusive production super-sports car. The black Chiron is one of the first to be delivered in the UK, with Bugatti building 500 over the next 10 years.

And as if it weren’t special enough already, its owner ticked the options for a leather and carbon interior at £53,000 and carbon-fibre seats for nearly £16,000.

The family dealership has specialised in supercars for nearly 20 years and this year has already

sold a Maserati MC12 plus a pair of Ferrari LaFerraris, with all three approaching prices of £3m each.

Tom Jaconelli, director of Romans International, said: ‘Although the Chiron is not yet sold out, if you place an order today you will be waiting at least three or four years before the car could be built and delivered, so we are offering the chance to “jump the queue” but of course there is a hefty premium to pay for this privilege.’

PROFIT WARNING

Shares tumble at Pendragon as sales of new cars decline

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endragon shares tumbled after the dealership owner warned that profits would be hit by falling demand for new cars amid a decline in consumer confidence.

The group, which is behind the Evans Halshaw and Stratstone brands, said it expected full-year profit to come in at £60 million – down from last year’s £75.4 million.

‘The decline in demand for new cars and the consequent used car price correction has impacted this year’s profit outturn and we anticipate that our full-year underlying profit before tax will now be approximately £60 million,’ it said in an interim management statement and strategy update issued on October 23.

Consumer confidence had ‘waned’ and the firm experienced ‘significant market pressures’ in the third quarter, it added. Shares collapsed by 17 per 08 | CarDealerMag.co.uk

by JOHN BOWMAN john@blackballmedia.co.uk

cent to 24p in morning trading. They were 24½p at the time of going to press. Pendragon said it was now conducting a strategic review of its premium brands to evaluate their ‘investment appeal’.

The company also announced that Mel Egglenton had stepped down as chairman and non-executive director with immediate effect for personal reasons, with Chris Chambers, a nonexecutive director since January 2013 and the senior independent director since November 2014, appointed chairman in his place.

Chief executive Trevor Finn said: ‘Following a strategic review, the board is now committed to focusing on reshaping the business to accelerate

transformation. We are placing our software and online technologies at the heart of our business as a platform to fulfil customers’ vehicle and servicing needs. We believe this strategy will provide more reliable and sustainable returns.’

Pendragon’s three-month trading update reported a reduction in new car gross profit of 20.7 per cent on a like-for-like basis. For the year to date, gross profit in the new car category fell by 10.2 per cent on a comparable basis.

Nevertheless, it expects to return to profitable growth in 2018. In the statement, it said: ‘We expect the new car market to continue to decline this year and the first half of next year.

However, we anticipate resumption of growth in profits in 2018.’

Part of the reason for its optimism is its plan to double its used car revenue by 2021.

James Dower THE second half of October saw significant signs of a weakening market as values dropped by 1.2 per cent at three years 60,000 miles, according to automotive data experts Cap HPI. Nearly new values at six months 5,000 miles and one year 10,000 miles felt greater pressure and fell by 1.3 per cent owing to higher volumes of short-term rental vehicles appearing in the market.

The level of pre-registered vehicles appears to be growing, and there are more than 12,000 67 plate vehicles on offer, it says. Many are identical models likely to see price erosion as a result.

James Dower, senior editor of Black Book at Cap HPI, said: ‘In comparison to 2016 and the average observed since 2013, this was slightly less of a reduction than we have previously seen.

‘However, it has signalled the steeper drop in values that would normally be expected moving into November. The later we moved into October, the steeper the decline in values, as our subscribers to Cap Live witnessed.’

Movements by fuel type at three years 60,000 miles showed diesel slide by 1.5 per cent, petrol by 1 per cent and petrol hybrid by 0.4 per cent.

Pure electric vehicles saw values increase, at three years 60,000 miles, by 0.3 per cent. Dower said: ‘The likelihood is that we will continue to see prices erode at pace through November and December.’

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Motor Finance

CarDealerMag.co.uk | 09

Dashboard.

What was the best-selling new car in October?

SMMT figures: p82

Greenyer

A PERFECT PARTNERSHIP

One size doesn’t fit all when it comes to sorting finance

T

An artist’s impression of the new showroom

REDEVELOPMENT

Multi-million-pound Jaguar Land Rover dealership takes shape

B

uilding work on a multi-millionpound Jaguar Land Rover dealership for Jardine Motors Group has begun in Wolverhampton.

The new showroom, which is set to open in late 2018, will be a redevelopment of old industrial land off Penn Road. The land has been derelict since 2004.

Jardine Motors Group, which operates more than 70 franchises, including the Wolverhampton Audi showroom off Ring Road St George’s, contracted family-owned construction firm Speller Metcalfe for the build, which will incorporate a showroom with space for 18 Jaguar and Land Rover vehicles, a workshop and service area, plus a reception area.

Steve Pettyfer, group property director for Jardine Motors Group, said: ‘Our new dealership facilities for the Jaguar Land Rover brand will be the largest in the group, and we are very pleased to have appointed local contractor Speller Metcalfe to deliver a project we can all be proud of.’

He added that new jobs would be created in addition to the 48 staff who would move across from Wolverhampton’s existing JLR dealership in Stafford Street.

Speller Metcalfe group managing director Des O’Neill said: ‘We’re excited to be working with Jardine Motors Group on this new project, which will support the ongoing growth and regeneration of the city of Wolverhampton.’

Inchcape enjoys revenue increase to £2.3bn INCHCAPE made a total revenue of £2.3bn Meanwhile, distribution revenue increased in this year’s third quarter – up nearly 15 by 21.4 per cent at constant currency and per cent, its latest trading update said. retail revenue went up by 3.6 per cent The multi-brand automotive at constant currency. The group distributor and retailer saw a said the results were in line with revenue increase of 14.6 per its expectations. cent at actual currency and 11.3 Group chief executive Stefan per cent at constant currency Bomhard said: ‘I am pleased between July 1 and September 30. with our strong third-quarter Disregarding the group’s South revenue performance. The strength Stefan Bomhard American acquisition, it equates of these results demonstrates the to an extra 9.4 per cent at actual currency advantages of our global diversification and 6.3 per cent at constant currency. and distribution-focused business model.’

10 | CarDealerMag.co.uk

here is much focus in the press at the moment about the UK’s reliance on credit to support consumer spending. Those offering credit to consumers therefore need to keep their focus on affordability. The motor retail sector needs to be especially aware of this issue.

Point-of-sale finance plays an important role for motor retailers selling used cars, with the most recent data from the Finance and Leasing Association showing that the value of finance on used cars increased by eight per cent year on year in August 2017.

Motor retailers need to ensure they provide their customers with a solution that gives them access to mobility for their daily lives but at a level that is affordable – both today and looking into the future.

However, car buyers rarely think about the total price of the vehicle. Instead, they focus on what they can afford per month. They then go into the showroom with that figure in mind. Dealers therefore need to ensure they have access to a range of finance offerings that will suit different customers with diverse budgets as well as diverse credit profiles.

They also need to think about how they appeal to the different demographics in their marketplace for the best possible success. At the risk of stereotyping an entire demographic, in general the majority of millennials prefer not to speak to anyone until they are ready to buy. That means they know the car they want and the fact they can get it financed before they even speak to a dealer. But there’s also a generation gap, and dealers need to remember that the older generation prefers to be guided through the sales process.

When it comes to promoting finance, the dealers that make it easy for consumers to work out how much their finance could cost will be the winners. For dealers with the knowledge and expertise to sell finance, as well as the necessary regulatory permissions it’s essential that they also have a rounded proposition. That means they need to select the right finance partners to ensure they can offer competitive finance that can meet the demands of the majority of customers who walk through the door.

One size fits all won’t work in today’s market. Dealers need to have choice to select the right finance offering for each customer’s circumstances and they need to ensure they are ‘open’ to all customers. Finance can definitely be an enabler in the car-buying process. But speed and accuracy of decisions is vital to ensure the right customers gain access to the finance they need and help them drive away happy.

‘Car buyers rarely think about the total price of the vehicle.’

Darren Greenyer is deputy head of lending at Raphael Finance

CarDealerMag.co.uk | 11

12 | CarDealerMag.co.uk

BELFAST: Northern Ireland’s largest independent new and used vehicle retailer the Donnelly Motor Group has bought the SMW Suzuki dealership from competitor the Agnew Group. The deal, for an unspecified sum, has seen it take over the showroom in Boucher Road. The dealership, which has retained its employees, has been renamed Donnelly Suzuki and is Donnelly’s third site dedicated to the brand.

Donnelly Group site director Paul Compton, left, said: ‘Suzuki has been a manufacturing partner of Donnelly Group since 2005, so we are delighted to build on that partnership with the addition of a third Suzuki showroom.’

Suzuki Great Britain national sales manager Stephen Robinson, right, said: ‘With new Suzuki vehicles already available at Eglinton and Newtownabbey, we have firsthand knowledge of Donnelly Group’s strong track record.’

Donnelly Group buys dealership from rival

PERTH: Councillors have given the go-ahead for a new Porsche dealership in the city. Peter Vardy Ltd will transform land at Broxden Business Park next to the Broxden Roundabout, with 29 jobs and four apprentice places expected to be created by the development. It will be Peter Vardy’s fourth Scottish site, following on from its dealerships in Aberdeen, Edinburgh and Glasgow. The Courier quoted Councillor Colin Stewart, the environment, enterprise and infrastructure committee convener, as saying: ‘The development by Peter Vardy Ltd and Porsche will deliver a significant and positive economic impact to the local area.’ Nina Stobie, director at property consultants JLL, which marketed the property, said: ‘Plans to build a high-end car centre on this site make very good commercial sense, particularly when taking into account the site’s location.’

Peter Vardy given go-ahead for Porsche dealership

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

NORTH YORKSHIRE: A team of budding entrepreneurs from Vantage Motor Group took park in a Dragons’ Denstyle pitch as part of the Million Makers challenge – a national competition where teams of employees collectively raise more than £1 million for The Prince’s Trust. The team of 10 comprises employees from across the Knaresboroughheadquartered car retailer’s locations and business functions. Team Vantage will now kick off its effort to raise £10,000 profit in six months after securing £1,500 of seed funding from the ‘dragons’ – Vantage CEO Mark Robinson, Gordons LLP business development director Jo Williamson and Olivia Jeffrey from The Prince’s Trust. To support Team Vantage, visit bit.ly/VMilMak

Vantage volunteers’ Million Makers challenge

GATESHEAD: Vertu Motors has completed the roll-out of AutosOnShow technology across 17 brands in its network.

The Tyne and Wear-based dealership group said the rollout to 112 dealerships was completed in record time, thanks to the use of online and in-app training. The move will help put video and imagery at the heart of a digital marketing campaign that will support used car sales across the group.

Adam Price, pictured, from AutosOnShow said: ‘The roll-out was completed in just three months and the platform is now seeing 1,000 vehicles uploading weekly. It will play a big part in driving clicks and conversion through the online sales channel.’ Tom Cummings, group internet and digital marketing manager at Vertu, said: ‘We are getting good feedback from our teams.’

Vertu drives online growth with AutosOnShow

News from around the UK

Dashboard.

CarDealerMag.co.uk | 13

CARDIFF: Two brazen hoodies stole a bumper and number plate from a Citroen DX3 on a dealership’s forecourt – right in front of its CCTV cameras. The theft happened early on October 5 at James & Jenkins in Station Road, Llandaff North, and managing director Mark James told WalesOnline he couldn’t believe it when he discovered the theft. ‘It was almost a double take. I thought: ‘‘Where’s the front of the car gone?’’ They had taken the wraparound bumper, which with the damage is worth between £750 to £1,000.

They took all the profits overnight,’ he said. Anyone with information should contact South Wales Police on 101, quoting occurrence number 1700386972.

Police appeal made after thieves strike

BIRMINGHAM: BCA’s 20-acre remarketing and logistics centre at Perry Barr celebrated its first anniversary with a special sale on behalf of BMW Group. It was one of the biggest sales to date at the centre, with three lanes in operation and more than 750 cars on offer. The sale attracted nearly 200 registered buyers and nearly 700 vehicles were sold on the day, generating a turnover of £9m. BCA Perry Barr general manager Dominic Burr said: ‘We were delighted to welcome BMW Group back to BCA Perry Barr a year to the day since partnering with them for our special opening event in 2016. Once again, BMW Group provided a superb selection of stock.’

BCA Perry Barr stages special anniversary sale

STOCKPORT: A £60m Mercedes-Benz dealership is to be built in the town after planners gave LSH Auto UK the green light to develop a 10.5-acre site off Brighton Road.

The state-of-the-art showroom, on derelict land, will be able to display 140 cars, showcasing 30 new MercedesBenz models. It will also boast a 32-bay workshop and create 165 jobs, and is planned to open in December 2018. Managing director Clive Hammond said: ‘Our existing Stockport operation, in Wellington Road North, is significantly challenged in terms of capacity. We see great potential in the Stockport area as a strategically important location with its proximity to the airport and excellent transport links, which will complement our international business structure.’

£60m Mercedes-Benz dealership to be built

Motorline buys Nissan and Peugeot showrooms ASHFORD: Nissan and Peugeot in Ashford have been bought

by Motorline Group. The addition of the location in Crowbridge Road for an undisclosed sum brings Motorline’s Nissan and Peugeot representation to nine and three showrooms respectively. A Motorline spokesman said the company was delighted to have acquired the businesses, as they fitted perfectly into the group’s existing Kent representation for both brands. ‘The two new dealerships increase to five the number of dealerships in Ashford and further strengthen the group operations in east Kent,’ he added.

Veterans pay return visit to Drift Bridge Honda GATWICK: Drift Bridge Honda once again opened its doors to Bonhams Veteran Car Run participants, as motorists travelled from London to Brighton in pre-1905 manufactured vehicles. It gave up its Gatwick forecourt and showroom to event partner Harrods, which created a Harrods ‘pit stop’ with coffee, croissants and a warm welcome at the halfway point of the run. Dan Poulson, head of sales, said: ‘We’re delighted to once again be playing a part in this iconic event. It is an honour to welcome motorists along with their beautiful vehicles.’ Picture from 2016

LEICESTERSHIRE: CarShop’s executive team braved the elements and raised £12,270 for Make Some Noise when they took part in the Wolf Run challenge. The wild running course combined mud runs, trail runs and obstacle runs in an unforgiving 10km course. The ‘wolf pack’ was made up of – pictured below from left – chief financial officer Brian Scott, chief executive Jonathan Dunkley, commercial director James Dunkley, ops director Kirk O’Callaghan and marketing and IT director Leo Nelson. They crossed the line after two gruelling hours, and Nelson said: ‘I’m really thrilled with the entire team for completing the run! Not only was it a great experience taking part, but to be able to raise such a large amount for our chosen charity and bring us closer to our year’s fundraising target of £100,000 is fantastic.’

CarShop’s not afraid of the big bad Wolf Run...

Dashboard.

There’s a new Swedish kid on the block!

Long-termers: p95

CONVENIENCE

Mitsubishi looks to retail future as it launches total online buying service

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itsubishi Motors in the UK is the latest manufacturer to launch a complete online car-buying service. Called Mitsubishi Buy Online, the website is designed to offer users the ultimate in convenience and transparency, allowing them to buy in store or from home and choose delivery to their door in some areas – but it’s just the first step for the importer in changing the way it sells cars.

Mitsubishi Buy Online is designed to connect customers and the brand’s dealerships online throughout the buying process. It’s been developed in conjunction with leading online vehicle retailing specialist Rockar to give car buyers the option to do at home some of the steps they dislike, or the entire process if they wish.

Lance Bradley,

by REBECCA CHAPLIN @believebecca

managing director of Mitsubishi Motors in the UK, told Car Dealer Magazine: ‘It would be relatively easy to say let’s just have a website where people can buy online and cut out the dealer network. In my opinion, that’s the wrong thing to do. The dealer network has an important part to play still.

‘There are things that dealers are really good at that customers love, but there are things that they absolutely hate when dealing with the dealer.

‘In the current process, we make customers go somewhere they wouldn’t normally go, we pay a lot of money to try to persuade them to do that with our marketing spend, then they go in and have to do battle – as they perceive it – where they know that the salesman knows what the rules are and the customer doesn’t, so it’s an unfair fight to start with.’

The Mitsubishi Buy Online website

REPORT

Record turnover although profits fall at Peoples Ford PEOPLES Ford has posted a record turnover of £276.57m in its annual report.

The group, which is chaired by entrepreneur Brian Gilda, is the largest independent dealership in Europe that sells just Ford cars and commercial vehicles, and the record turnover – for the year ended July 31 – was an increase of 6.1 per cent on last year’s £260.66m, which was itself a record.

The company achieved its second-best year ever, although profits dipped by 10.4 per cent to £6.32m against last year’s recordbreaking £7.05m.

14 | CarDealerMag.co.uk

The straightforward facility introduces a range of enhancements to the way in which customers currently buy cars online, including earlier visibility of finance options and delivery times.

This is the brand’s first step towards its own store in a retail centre, as Mitsubishi attempts to improve its representation in urban areas.

‘A lot of manufacturers have their own company-owned stores – the huge places down the Westway going into London. That’s one way of doing it but it’s very expensive, and I’m still not sure if that’s what customers want,’ said Bradley.

‘Then we looked at what else we could do and you see these big shopping centres that people are going to anyway.

‘About 85 per cent of the population visit big shopping centres around the UK, so instead of trying to persuade people to go where they don’t want to go, why don’t we go to the places people are already going to? But you can’t do that unless you’ve got an online solution.

‘I don’t think people would buy something as big as a car online if they didn’t know that there was somewhere nearby where they could get it fixed if something went wrong. However, if you look at what supermarkets have done, you know you’re going to be able to get everything they sell, but sometimes you only want to go to the local one and you’ll know that you can get most of what you want but not necessarily everything.

‘Customers are quite happy with that and they like it because it’s much more convenient. If we could do something like that with a Mitsubishi dealership would it be acceptable to customers? I think it probably would, and the cost for a dealer would be less.’

AUTO TRADER

Customers to be given online monthly budget search option AUTO TRADER UK says it will offer consumers the ability to search by monthly price before the end of 2017.

The new option will arrive on December 20 and will be a step towards creating a complete finance offering for dealers and consumers.

According to research from Google, 71 per cent of car buyers want to start the process of buying a car on finance online. The new

feature will let them see how much a car will cost on finance, as well as giving dealers an opportunity to sell their finance deals earlier on. The upcoming finance search function, developed with Codeweavers, will allow customers to enter a monthly budget and find cars available for that amount.

It won’t be limited to FCAapproved dealers either, said Auto Trader.

COURT DATE

Director facing fraud charges A DEALERSHIP director is to face multiple charges of fraud.

The Daily Post reported that Gwyn Merion Roberts, 48, who ran Menai Vehicle Solutions, which was based at Intel Parc Menai, Bangor, Gwynedd, will appear before Llandudno magistrates on November 22. He is accused of 25 offences, said to have been committed between January and October 2015.

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CarDealerMag.co.uk | 15

CDX 2018 LIVE STAGE

Digital and physical – we’ve got both covered so make sure you get a seat

by REBECCA CHAPLIN @believebecca

C

DX 2018’s Car Dealer Live Stage will be bringing the motor trade to life at Manchester Central Convention Complex. Taking place on May 21 and 22, it’ll be two unmissable days and we’ve created two line-ups to cover the most important issues facing dealers today.

On the first day, we’ll be tackling digital dealerships, covering everything about presenting your dealership on the world wide web. If you’ve got queries such as where you should be spending your money online, how best to present cars to get more inquiries or how online finance could increase your leads, you won’t want to miss it. And with so many great new products available, our panels will endeavour to demonstrate what they actually mean to your dealership – big or small.

Our second day will cover physical forecourts.

At a time when the role of the car salesman is changing because the digital world is making more of an influence on the way consumers buy cars, we’ll be examining what you can do in your showroom to capitalise on this. Our panels will be offering valuable advice on how you can make more money by implementing new processes or best practices in your dealership.

Every session will feature a panel of experts in their fields. We’ll be taking input from dealers, manufacturers, suppliers and specialists from outside of the industry, all of whom will be able to offer exclusive insight at CDX 2018. Take a look over the page at the sessions that will be taking place. If you want to know something in particular or have a question on one of the topics, get in touch. You can find my details at the front of the magazine – I’m always keen to find out what you need to know!

The independent dealers Live Stage session at last year’s CDX Importantly, don’t forget to sign up for your tickets at cardealerexpo.co.uk – we’ll be releasing more details on our panels over the coming months, with further insight into each of the topics. If you don’t want to be left standing, why not take one of our VIP tickets, which come with exclusive front row seats for the Live Stage and workshop sessions? As well as the panels, we will also be hosting keynote speeches on the day – but we’ll be announcing those in the future.

And don’t forget, our workshops – sponsored by our headline partners – will be taking place over both days, giving you two chances to see them!

LIVE STAGE

In association with

16 | CarDealerMag.co.uk

Day 1

Day 2

May 21

Digital dealerships

May 22

Physical forecourts

Best practice online What is the best way to advertise your cars and business in general online?

Social media Understanding your dealership’s voice on social media and what platforms you should invest your time in Web design How to improve your customer experience, sell more cars and improve customer retention online Coolest new digital tech What new products, services and technology should you be implementing online now?

SEO Is content still king on your website? How can you improve your dealership rankings and save cash on pay per click?

Digital journeys Understanding how consumers use your website, and convert more page views into car sales Selling cars with video When and how should you use video to convert more browsers into buyers?

Understand your digital data How to use your website’s analytics to know what your customers want and when Email marketing best practice How often should you contact your customers and what content do they want from your emails?

Digital car sales When will buyers want to complete their entire purchase on your website and how can you prepare for that big day?

Targeting your online advertising Where should you spend big online and how do you know if it’s working?

Where to spend your digital dollar next What big projects should you be putting your business’s cash into in the coming years?

Recruitment How to attract the best-quality staff to your business and where to find them How to win over a customer complaint Using customer service to turn around a bad experience into a positive Dealership design What matters most to customers when it comes to your showroom’s layout and how to implement it now Managing your database How to run a marketing event, capturing the right data and making use of local promotional opportunities Physical marketing best practice Is there still a place for print advertising? Plus when and how to use radio and television ads Aftersales How to make your workshop an extension of your showroom to help you make more money Upselling What upsale opportunities are customers most receptive to when they’re in your dealership?

Merging the channels How to effectively transfer your online visitors into physical showroom visitors What consumers want Those on the consumer side reveal what customers really want when they walk into your showroom Closing the deal Our experts reveal their top tips to closing car deals in the most effective and profitable way Finance Will the popularity of PCPs last forever or is leasing about to become the next big thing? We discuss the future of finance When to expand When is the right time to increase your stock and move to a bigger site?

Want to find out more about the biggest and best expo for the motor trade? Get in touch with us now!

Email events@blackballmedia.co.uk or call 023 9252 2434 CarDealerMag.co.uk | 17

Dashboard.

EXPANSION

JLR showroom is a first for city

VIP EVENT

Sky lights up with fireworks for new Jennings showroom

A

new Kia and Mazda dealership has officially opened in Sunderland for Jennings Motor Group and created 24 jobs in the process.

It was marked with a VIP event at the showroom next to Sunderland Football Club’s Stadium of Light.

Nas Khan, managing director of Jennings Motor Group, said: ‘We’re delighted to be further expanding the

business and boosting the region’s economy with the creation of new jobs by bringing the Kia and Mazda brands to the people of Wearside.’

Official opening proceedings got under way with a ribbon-cutting ceremony by Khan, alongside Simon Hetherington, commercial director at Kia Motors (UK) Ltd, and Brett Hague, head of network strategy at Mazda Motors UK. VIP guests

enjoyed an evening of entertainment and refreshments, followed by a grand finale firework display. The site – a former car dealership – has undergone a complete refurbishment.

Each showroom has a five-vehicle display plus new high-specification finishes and fittings as well as lighting. Part of the refurbishment also included installing an eight-ramp workshop and MOT bay facility.

JOHN Clark Motor Group has opened a Pentland Jaguar Land Rover showroom in Edinburgh – bringing the two marques under one roof for the first time in the city.

Pentland Jaguar Land Rover Edinburgh East, which is in Whitehill Road and took nine months to build, replaces the Pentland Jaguar showroom in Glasgow Road, which has become a used car showroom for John Clark and can also service Jaguars.

The Whitehill Road dealership has a 10-car showroom, display area for 65 used cars and 11 workshop bays. Facilities include a handover bay, where customers can see their cars unveiled before driving out of the showroom.

The group’s Pentland site in Hallbarns Crescent continues to sell Land Rovers.

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

18 | CarDealerMag.co.uk

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Dashboard.

What’s been getting you talking?

Feedback: p28

U-TURN

PARTNERSHIP

Watchdog reverses ruling to uphold adverts complaint

T

he Advertising Standards Authority has reversed a ruling it made earlier this year that saw a complaint against Glyn Hopkin and Fiat Chrysler Automobiles UK rejected. The watchdog investigated a complaint about two adverts for Alfa Romeo Giulietta vehicles in Chelmsford and Romford that appeared on the usedcars.alfaromeo. co.uk website on May 13, 2016.

The complainant said they understood the two vehicles to be ex-fleet and challenged whether the adverts omitted information that could have affected their pricing – specifically, whether the cars would have had multiple users.

After submissions by Glyn Hopkin and Fiat Chrysler Automobiles UK (FCA) – including one from FCA saying its records for the cars showed that one vehicle was used by a selfemployed FCA contractor to provide technical training on the car and

by TRISTAN SHALE-HESTER @tristan_shale

the other was used by a member of its own staff, so neither had had multiple users – the ASA said in March that it considered that no material information was omitted.

It concluded that the adverts weren’t misleading and didn’t uphold the complaint, adding that no further action was needed.

However, in a rare move by the authority, it has now done a U-turn on the ruling, saying it considered that vehicles previously leased out for business purposes and used by multiple users were more likely to have been subjected to wear and tear compared with vehicles previously owned by a private

Lookers helps to provide lifeline

owner. It said that with regard to one of the adverts, information had been omitted that indicated the car was ex-fleet, having been used for business purposes, which it considered consumers needed to know about to make an informed decision before buying it.

Meanwhile, the other advert didn’t state that the car had previously been used for business purposes, which again the ASA considered was material information that consumers needed to know to make an informed decision before buying it.

As such, it said that both adverts were misleading.

It has now ordered both Glyn Hopkin and FCA to ensure that future ads don’t mislead potential buyers by leaving out such information.

An Alfa Romeo Giulietta similar to the ones seen in the website adverts

NATIONAL motor retailer Lookers joined forces with a health charity to improve response times to victims of heart attacks by supplying the ambulance service with a new response vehicle.

Franchise dealership Newcastle Audi partnered with Cardioproof to provide the Audi SQ5, which should save between 40 and 50 more lives a year.

The vehicle, which will be used by the Cardiac Arrest Response Unit based in Newcastle upon Tyne, is the result of a friendship between Lookers chief operating officer Nigel McMinn and neighbour and Cardioproof founder Professor Michael Norton.

McMinn’s 11-year-old son and car fan Joseph suggested the SQ5 because of its specifications.

From left: Ian Humpish, MD at marketing agency The Roundhouse, Prof Michael Norton, Joseph McMinn, lead consultant paramedic Paul Aitken-Fell, Lookers Audi division operations director Paul Liddell

UK car production drops in September as domestic decline drives fall UK CAR manufacturing fell in September, with 6,500 fewer cars rolling off production lines than in the same month last year, according to latest figures from the Society of Motor Manufacturers and Traders.

The industry body said yearon-year output dropped by 4.1 per cent, resulting in a total output of 153,224. Production for export fell by 1.1 per cent in line with slower growth across EU markets, but it 20 | CarDealerMag.co.uk

was substantial double-digit losses in the home market that drove the overall decline. Domestic demand in the month dropped by 14.2 per cent to 31,421 units, contributing to an overall year-to-date production decrease of 2.2 per cent. SMMT chief executive Mike Hawes said: ‘With UK car manufacturing falling

for a fifth month this year, it’s clear that declining consumer and business confidence is affecting domestic demand and, hence, production volumes. Uncertainty regarding the national air quality plans also didn’t help the domestic market for diesel cars, despite

Mike Hawes

the fact that these new vehicles will face no extra charges or restrictions across the UK. ‘Brexit is the greatest challenge of our times and yet we still don’t have any clarity on what our future relationship with our biggest trading partner will look like, nor detail of the transitional deal being sought.

‘We urge government to deliver on its commitments and safeguard the competitiveness of the industry.’

CDX UNVEILS

VIP tickets with the Midas touch

VIP TICKET DAYS 1 & 2

£149 To give delegates more flexibility for the event, we’re introducing a limited-edition VIP ticket Benefits include | Fast-track entry to the show on both days with guaranteed parking | VIP business lounge access, sponsored by iVendi, with complimentary refreshments and food served all day | Exclusive free VIP wi-fi and cloakroom | VIP front row seating to all workshops | Exclusive networking session with speaker | VIP book plus show guide |

Get your tickets now at cardealerexpo.co.uk In association with

CarDealerMag.co.uk | 21

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

What would you do with an extra £155,000 a year?

We know from speaking to our customers just how frustrating and challenging vehicle transportation can be, not to mention how costly. In fact, many of the top 25 dealer groups have told us that one of the main worries associated with running a dealership is the cost of moving vehicles, whether between sites, or directly to their customers. And when you’re transporting upwards of 5,000 vehicles a year, that’s not surprising.

As part of our ambition to provide our customers with the very best tools, insight and solutions to operate more effectively, earlier this year we acquired Motor Trade Delivery, the leading online real-time marketplace for the trade delivery of vehicles across the UK.

What’s more, you can set up various ‘networks’ to offer the movements to.

So, if you only want to use your regular transportation companies, that’s no problem; just setup a network limited only to these firms. No one else can see these jobs and only your regular companies can take or bid on them.

Through Motor Trade Delivery’s innovative platform, now powered by Auto Trader, we offer a unique service that brings together just about every element of the motor trade that requires vehicle moving; serving dealerships, lease companies and rental companies. By providing a platform that allows logistics companies to bid on your individual delivery requirements, we offer our customers an efficient one stop service for moving each vehicle below the current market price.

What about the price? Well, what you see is what you pay – complete transparency with no hidden or unexpected costs. All movement prices include fuel, which means you can budget more effectively and regain control of your spend. If that’s not enough, Motor Trade Delivery can help you improve the speed and service of your vehicle movements, as well as plan, track and report on all your suppliers.

How does Motor Trade Delivery work?

Through motortradedelivery.com, dealers can list ‘jobs’ and logistics providers bid for them via a live auction process. Whether you need to move one car or a whole fleet of vehicles quickly, you can enter your requirements on the site and expect a bid for the job – no more waiting for quotations and ringing around car haulage companies. The logistics companies come to you and bid for your business. It means dealerships get the best possible price for the vehicle movement and the logistics providers save time and money by getting access to greater volumes of work. Win-win.

It’s important not to underestimate how inefficiency can impact your bottom line How will it affect my bottom line?

Well, based on an average journey distance of 78 miles, the approximate cost of moving a vehicle between sites is £110; which means 5,000 movements a year could be costing you in the region of £550,000. And for fleet and customer handovers, that cost could be even greater. Based on an average journey distance of 140 miles, the approximate cost per move is closer to £185.

Of course, when it comes to determining the actual price of transporting your stock between sites or directly to your customers, it’s not simply about the agreed cost per mile.

It’s important not to underestimate how inefficiency can impact your bottom line; the logistics marketplace is a challenging environment to navigate in a cost-effective manner.

Many challenges have been historically difficult to overcome, such as hidden costs, no standard service levels (which means you have to manage varying levels between suppliers, resulting in time spent negotiating every time a new supplier is used, or risk an unsatisfactory service), and no available data (which makes it challenging to optimise the best routes between collection and delivery, the quickest time, or the lowest tariffs).

How much will I save?

I know what you’re thinking: that’s all very well, but get to the money…how much can I save? Well, simply put, with Motor Trade Delivery you can move stock faster, more efficiently and, most importantly, cheaper. Using the greater efficiency offered by the Motor Trade Delivery platform, you could save an average of £31 per movement – so if your business requires 5,000 movements, that’s a very significant £155,000 per year.

So, the question is, what would you do with an extra £155,000 in savings? Why not try Motor Trade Delivery and find out?

For more information call 0330 303 9030 or visit motortradedelivery.com For the latest news, views and insight for the automotive retail community, follow @ATInsight on Twitter and LinkedIn 22 | CarDealerMag.co.uk

Dashboard.

REFURBISHMENT

Swansway ploughs £300k into showroom facelift

BATTERY BLUES

Mobility scooters part-ex deal proves a non-runner

by ADAM WELLER @AdamNeverKnows

A

n Irish car dealer has been left counting the cost of a crazy part-exchange deal.

Ivan Hamill – who has run Ivan Hamill Cars in Portglenone, Northern Ireland, since 2002 – accepted a pair of mobility scooters and £1,200 for a 2008 Vauxhall Vectra with 106,000 miles on the clock, leading to the pictured tweet.

Other dealers may well have baulked at such a business proposition – and they’d have done well to, because unfortunately for Hamill his good intentions fell flat somewhat…

He told Car Dealer that when he agreed to take the scooters he’d assumed they were in working order. ‘I was going to sell them on but it turns out they’re not working, so that makes the deal even worse. The customer said one worked and the other just needed a charge, but I think the batteries are going.’

And it seems the scooters aren’t going to find a new lease of life any time soon.

‘I don’t think it’s worth the bother of getting them back into working order. I might just stick them on a site and ask if anyone wants to make me an offer. I’ll see if I can get anything for them.

The tweet by Ivan Hamill Cars If not, I’ll get a few quid for the batteries in scrap.

‘It was one of those things where I thought it was worth the chance. If the scooters were scrap I was no worse off and if they were good it’s extra profit. But – story of my life – they were no good!’

If YOU have any bizarre part-exchange stories, get in touch with us on Twitter @CarDealerMag.

THE Swansway Peugeot dealership in Chester has had a £300,000 facelift.

The showroom in Sealand Road has been given a full refurbishment, which means it’s now one of Peugeot’s most state-of-the-art dealerships.

Jay Dougan, head of business at Swansway Peugeot Chester, said: ‘It was a really nice centre before but now it’s absolutely great – a much better place for customers to relax while they’re having their cars serviced or talking through options on a new one.

‘These days, people prefer a more informal atmosphere and this investment has given them just that.’

When the work was going on, doing business on the site was more difficult than usual, but operations director Andrew Wakelin said all the staff performed brilliantly regardless.

‘The new centre is beautiful,’ he said.

‘But I must give a massive round of applause to Jay and his entire team – sales, service and workshop – for continuing to make our customers smile, despite what was at times a rather chaotic site.’

TOXICITY CHARGE

Pre-Euro 4 vehicle drivers face £21.50 fee in London DRIVERS of the most-polluting vehicles now face a daily charge of £21.50 to enter central London.

The toxicity charge came into effect on October 23, meaning those driving older, more polluting petrol and the dirtiest diesel vehicles will pay the new T-charge of £10 plus the congestion charge of £11.50. It is applicable to pre-Euro 4 vehicles every weekday between 7am and 6pm.

The Mayor of London, Sadiq Khan, has launched the charge to tackle London’s air pollution and prepare Londoners for the early introduction of the Ultra-Low Emission Zone, which he is proposing to bring in as early as April 2019.

He said: ‘As Mayor, I am determined to take urgent action to help clean up London’s lethal air. The shameful scale of the public health crisis London faces, with thousands of premature deaths caused by air pollution, must be addressed.

‘Today marks a major milestone in this journey with the introduction of the T-charge to encourage motorists to ditch polluting, harmful vehicles.’

CarDealerMag.co.uk | 23

Drive more business Collaborate with us to shift your sales up a gear. As experts in warranty and asset protection programmes, Car Care Plan know how to drive sales in the automotive market.

For products that lead to bigger deals, visit

www.carcareplan.com 24 | CarDealerMag.co.uk

Behind the scenes REBECCA CHAPLIN

Blackball Media’s head of editorial is never afraid to tell it like it is

I’ve tasted the automated future – and it urgently needs a flavour of the past

A

lmost everything in our world can be done by a machine these days. Car washes, automatic signalling on roadworks, self-service checkouts and, importantly, coffee. The question is, when you’re replacing human interfaces with computers, how do you ensure that the customer service element is still fulfilled? And if there’s a combination of real human beings and machines serving you, how do they work seamlessly together?

I originally wrote this column about a month ago and I’ve toned it down somewhat. I have now had time to process my issues and I can say I was very angry with Shell. Yes, there I said it, I was very angry with them.

This is actually a story about coffee, though: Costa Coffee, to be specific.

You might have a different experience with Costa where you live but in Gosport, where we’re based, they’re awful. Unfortunately, we don’t have a Starbucks, and admittedly they can be just as bad. I think it’s fair to say, though, that usually Starbucks hires a certain type of person who is happy to help and 80 per cent of the time its coffee will taste as good coffee should.

I find Costa has about a 15 per cent success rate and we seem to be on a rotation in Gosport where you are always served by a different person.

Maybe that’s how unemployment is being tackled in the area or maybe this particular branch just enjoys hiring a huge clan of staff but knowing there will never be enough people to serve customers on any one shift.

So, of course, I’m thrilled by the prospect of Costa Express machines in service stations. These should take the risk out of coffee ordering, as you know it’ll be made in exactly the same way every time.

Anyone who has used one of these machines, though, will know that this isn’t the case.

When ordering a black Americano and seeing the water running clear rather than a murky brown, it’s always reassuring that the machine has been cleaned sometime recently. However, there’s always the risk that the machine hasn’t been attended to...

Much to my excitement, on this particular Monday morning I needn’t have worried about any of these factors – there was a brandnew Costa Express machine in my local Shell station. With more

options, a shiny new interface and – fingers crossed – good coffee, things were looking up.

This is where everything started to go wrong... I’d ordered a large black Americano, which I intended to drink as my car went through the car wash. The water filled, long pause, then some coffee, followed by a long pause. I waited, and although the graphic continued, nothing seemed to be happening, so I removed my cup. Once my lid was on (a hint at just how long I was waiting) the remaining coffee I’d ordered fell from the machine.

This was slightly annoying, and the woman behind me tried to insist that I took another but the wait had been too much. Now I just wanted to get out.

I walked over to the cashier and asked to pay for my fuel, hot water dressed with espresso and a super shine wash code. ‘Do you have the ticket?’ the cashier asked. Do I have the ticket? No, but I have the coffee right here in front of you.

‘I’m sorry, we need the ticket from the machine to put it through the till.’

There’s no override? There’s no button on that clever till of yours that could rectify this already painful trip?

So I walk back, retrieve the small barcode from the machine and return to the till. Already turning red, I try to pay to have my car washed. Nope, it had been broken for three days.

Automation and computers replacing people is more efficient when all of the communication works correctly. When it doesn’t, it just becomes plain irritating and it’ll put your customers off.

Why didn’t the coffee machine ask me to take my ticket? Why wasn’t there a sign to say the car wash was currently out of order? Why couldn’t the cashier just take my money to keep the customer happy?

Spelling things out in clear and simple steps might seem patronising sometimes, but the steps that seem simple to us can be alien to others. When we’re moving towards more automated processes in dealerships, when it comes to buying cars online or using booking systems and even autonomous cars, there are still things customers need to know. No business wants to lose a customer because of a bad experience, and you definitely don’t want to be the one where a customer is all ready to pay but your systems don’t make sense.

So maybe hold off on hiring more robots too soon.

‘This is where everything started to go wrong... I’d ordered a large black Americano.’

Rebecca Chaplin is head of editorial at Blackball Media and presents news programmes and features on its online video channel Trade Plates TV. CarDealerMag.co.uk | 25

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26 | CarDealerMag.co.uk © Copyright Aston Scott Ltd 2017. Aston Scott Ltd is authorised and regulated by the Financial Conduct Authority (FRN No. 308048). Registered office: Malling House, West Malling, Kent ME19 6QL. Registered in England and Wales No 01341849.

Big Mike Our man on the inside spills the beans on the car business

Taught a lesson by part-exchange Pug that left me feeling I’d been a mug

L

ast week, I scrapped a car for a problem that, just a few years ago, would have been a fairly routine repair.

The vehicle in question was an otherwise perfectly good Peugeot 407 (if such a thing isn’t an oxymoron), and I’d taken it in part exchange in good faith. Now, none of us is stupid. Cars are often a distress purchase, especially for people who aren’t interested in cars – Peugeot 407s even more so. As such, I was fully expecting there to be a problem or two to sort out, and the owner didn’t baulk at my offer of £700 for his part-ex.

Alas, after Matey Boy had driven off into the sunset at the wheel of his new-to-him Volvo V70, I quickly realised that the 407 was quite a bit poorly. You could drive it on a light throttle, but give it the beans and the clutch would start to slip. That, of course, made it unsaleable. The next stage, then, is somewhere we’ve all been – deciding whether or not a fix would be viable.

The car had some merit. Not much, admittedly, but some. Significantly, it was a diesel. And while Dirty Diesel may have suddenly become Public Enemy Number One in the eyes of the environmentalists (a word that, I’m always amused to acknowledge, ends in ‘mentalists’), it still carries some weight in the world of the frugal motorist, especially the type of penny-pincher that can’t see past what they might pay at the pumps.

Should they ever need to swap out a clutch, however, the equation becomes a very different one.

First of all, there’s the clutch kit itself. Even shopping around for pattern parts, I was looking at £150-200. From Peugeot, a whopping £450.

Compare that, if you will, with the clutch I sourced for a Rover 25 the other week, which cost me a grand total of £27.

Then there was the labour.

Naturally, being a modern-ish diesel, the 407 had a dual mass flywheel.

And unsurprisingly, the tell-tale ‘dink, dink, dink’ noise was there that suggested that it, too, was on the way out. Parts-wise, another £200…

When you consider that the forecourt value for a 2007 407 HDi SE with 120,000 miles on the clock is about £1,500, and that anything French and about to enter its second decade ranks somewhere between ‘gamble’ and ‘time bomb’ in the psyche of most buyers,

you can see that, even without labour, I was already well invested.

As for the actual physical repair? Well, the book said eight hours for one technician. Imagine that – an entire day of your life buried deep inside the ugly bits of a Peugeot 407: a car that had already had a sideways glance off the ugly stick as it left the production line.

Even with mates’ rates from my favourite under-the-arches repairer Big Fat John (also known as ‘The BFJ’, or ‘Johnny Cash’ because he’s nearly always covered head to toe in something black and only accepts one form of payment), I’d be looking at twenty quid an hour plus 200 Lambert & Butler, lots of moaning and – at the end of it – a rather mediocre, aged Peugeot whose only redeeming feature is its ability to get 50 miserable miles out of every gallon of slimy, smelly fuel. Nah, for fifteen hundred quid, give me an old Jag any day…

So, an expensive lesson learnt. With the £700 that I’d allowed, plus parts, plus labour, I’d get out of it at break-even at best, which sounded a right load of hassle.

Instead, The BFJ and I spent a rather satisfying Saturday afternoon tearing it apart limb from limb (I did chuckle to myself, though, when the man with the spanners started singing ‘One Piece at a Time’ as he dismantled the pestilent Pug, completely unaware of his other nickname). The shell we filled with other bits of scrap metal and weighed in for a hundred nicker. £600 to go to get my money back…

Right now, the 407 is currently advertised on eBay – all 1,206 listings of it. One thing a car dealer hates doing is losing money, so if I can part it out, even at a quid per component, I’ll be happy.

And in the meantime, here’s a piece of advice. Neither petrol cars nor automatic ones will ever win any fuel economy competitions, but in terms of modern technology both of them will save you a whole load of hassle and heartache in the long run. And if you’re in the market for a 10-yearold, mid-spec, manual, diesel Peugeot 407, what on earth are you doing reading a car magazine?

‘Anything French and about to enter its second decade ranks somewhere between ‘gamble’ and ‘time bomb’

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 | 27

Feedback.

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

Our website at CarDealerMag.co.uk

I’m not going to buy the The ashtray is too small. Yes, that’s right THE ASHTRAY IS TOO SMALL. Some people... Anyway, it’s always nice to know that there isn’t anything else they can try and pick at! Anyone else have a story to chuckle at?

D&M Here are some of ‘my’ reasons for not buying: 1) Customer thought the cable ties holding on the wheeltrims were holding the wheels on to the car.

2) ‘Sorry, I want a diesel and hate orange.’ The punter had done a 300-mile round trip to see an orange, petrol Freelander.

3) ‘I wanted a diesel.’ The same Freelander! A pair of chumps drove almost six hours from south Wales to the north-east and it was now 7pm on a miserable winter’s night. I just laughed in their faces, told them to enjoy their journey back, plipped the central locking and shut the front door in their faces.

4) ‘The cambelt’s not been changed.’ On a petrol Honda Jazz. The best part was her ‘mechanic’ agreed with her. The ‘mechanic’ worked in the valeting bay at a local VW specialist...

5) ‘There aren’t enough chips on the windscreen for an eight-year-old car.’ Apparently that equates to the windscreen being replaced after a serious accident.

6) A punter didn’t like the colour of the steering wheel (03ish Vitara with grey dashboard and steering wheel).

BHM Best one I had, a couple loved the car they were looking at. Right car, better spec than they wanted, newer than they’d expected to get, lower mileage and well within the budget. After the test drive, though, they decided not to have it. The reason being... claustrophobic feet.

CJ Underhill Had one this Saturday. Dad brings daughter 2½ hours from Norwich to look at a three-year-old lovely blue convertible we have. After talking her out of it, because he didn’t like the roof (thought

Picture of the month Motorway service stations might have met their match with this one… If you’re going to sell a misleading-looking sandwich deal to anyone, it’d be advisable not to pick Joel Combes, sales and marketing director at our Car Dealer Club friends Lawgistics. It seems Joel wasn’t all that impressed by the ‘gourmet’ snacks available along the route of this year’s Bangers4Ben adventure (see page 66). Sadly, the cashier didn’t understand ‘le trade descriptions act’, despite our extensive gesticulations, so no further action could be taken. it might get slashed, etc etc), the one reason that they went away empty-handed – her words exactly, no lie – ‘I’ll have to spend more time on my make-up when driving the car around with the roof down, and I’m not sure I’m prepared to make that much effort.’ I give in!

Mat C ‘Because we really want an estate,’ says Mr Magoo. Stunned silence. ‘Does the advert state and show an estate then?’ thinking I’ve boobed but sure I haven’t. ‘No, but we thought we would take a look anyway,’ says Hyacinth Bucket. ‘But you’ve driven 45 miles and over an hour to get here...’ ‘Yes, but we thought it was only quarter of an hour. To tell you the truth, we almost gave up.

Your address is misleading,’ with nodding heads.

‘Misleading? In what way?’ says puzzled dealer.

‘Well, it’s not very well signposted,’ says Mr Magoo. ‘What, from all the way from your house to the site?’ I thought. To be honest, I couldn’t get upset with them, but I did laugh. tradex

What are your overheads?

I’m interested to know the different range of monthly overheads you guys have. I am really struggling right now. I’m a one-man band and my

monthly overheads are £3,700 without paying myself. This month and last have been a real struggle and, as always in times of despair, you begin to question yourself.

MSP Motors Just one of those months and we’re seeing a year-on-year decline on returns anyway. But if your business profile has worked in the past, it’s not always a good idea to look for change. £4k-ish per month including AT bills could be about right, depending on stock level. tradex At the end of the day it isn’t what your overheads are but how much you have left in the pot after they are paid. It’s just getting the balance right. whitestone679231 Part of running a business must include planning and accounting for the poor or quiet times and not living hand to mouth. We all need a contingency. I used to sail very, very close to the wind with leaving nothing back, as I always used to just plough it back into stock. I sleep much easier having enough back to last three months without selling a single car as a reserve. I was mental when I first started, looking back.

Rory RSC

Looking to switch from home to office with viewing area I AM looking to move away from trading from home and would just like to see if anybody on here has a similar set-up to the one I am looking at. A local smallholding has converted a building and made it into offices. There will be four offices with a communal conference desk for larger meetings.

For £300 I would have the office that is a nice size – enough for two desks, an area outside in which my customers can come and

28 | CarDealerMag.co.uk

view the cars by appointment only and a bay in a converted shed to do any prep work required.

Alongside this would be parking for three cars plus customers. It’d mean I could keep five cars at home and three at the office. The added benefits are not doing viewings at home and having a nice office to do the paperwork etc.

Any thoughts or advice from you guys would be greatly appreciated.

Dlloyds

Keep your costs low, beat the competition.

Logistics will be the issue. Moving stuff from a to b is always an issue – it is for me.

You’ll need numerous insurances, your trader’s policy will need multiple addresses, CCTV security, public liability, trade plates, planning for usage agreed by the council, etc.

It isn’t as straightforward as you might be thinking...

Arfur Dealy

More and more of our readers are joining the debate – and it couldn’t be

On Twitter: Follow @CarDealerMag

Forum: CarDealerMagazine.co.uk/forum

car after all because...

Tweets of the month Top tweet Fantastic atmosphere at @Italianawards yesterday! Massive congratulations to all the winners! #EnglishItalianAwards FIAT UK @FIAT_UK

#KiaStonic is the most customizable compact crossover you will ever meet.

Jennings Motor Group @Jennings_Group

‘The most successful designs always come down to three or four lines’. Giles Taylor, Director of Design at Rolls-Royce Motor Cars Rolls-RoyceMotorCars @rollsroycecars

TPS’s Quarterly Hero has been awarded to Jerry Mansell for his Commitment & Customer Knowledge – Congratulations Jerry, well deserved!

JCT600 @jct600

Well done @MSportLtd on winning the 2017 @OfficialWRC Manufacturers Championship with the #Ford Fiesta WRC! Ford UK @fordUK

Our #Dracula inspired #Bentayga Blackline Specification has a fang-tastic sports exhaust.

Call us for a test drive…we don’t bite!

Bentley Belfast @BentleyBelfast

FEEDBACK

How can we keep card payment fees down?

I’M DOING a bit of research into card payment machines and have noticed the fees are now astronomical! Over a year ago I had a penceper-transaction set-up on debit cards, I think it was 45p. Since some EU directive has kicked in it’s now 0.45 per cent. Obviously, this hits us hard! £2,995 on a card now costs £13.40!

I’ve spoken to the provider and I can get it down to 0.33 per cent on debit, which is still a lot, but I wanted to know if anyone out there had found someone still offering a costper-transaction deal. Obviously we all share relatively high ATV (average transaction value), so this would be of benefit to all of us.

Mojo121 Take deposits on card up to say £500. Bacs the rest or charge a one per cent/two per cent fee to cover costs in the short term.

The main problem I have with this is getting a transfer is fine if they leave a deposit today and want to come back at the weekend, but when all your cars are ready to drive away today you just have to suck it up. We won’t be able to pass on any fees from next year either.

Rory RSC Izettle have now reduced their commission to 1.75 per cent on a transaction – this is both debit and credit card. Although this is quite high on a debit transaction there is no contract

or monthly fees, so you are only paying when you actually do a deal.

I now push for Bacs payment, but if the customer insists on paying by card I add a two per cent fee (occasionally if the customer looks like they are walking I suck it up).

I do not charge anything on deposits and usually accept £200 to hold something.

Max Branning I had the same problem where I used to get charged 22p per debit card transaction. They then changed it to 0.23 per cent per debit card, which was a lot more in fees.

I went to the trouble of checking every merchant provider, finally finding one that charged 0.25 per cent per card but capped at 0.88p. I left the old provider, moved to the new one and three months later they changed the terms again and said they couldn’t do the cap at 0.88p any more.

When I challenged it they said I could move to another provider if I wanted without any notice fees (very helpful!). So I ended up in a worse position after spending a lot of time moving and filling in application forms. To my knowledge, no one is offering a fixed or capped price now for debit cards. If anybody has found a provider with more favourable terms I would also be interested to know. russp

The calm before the storm! @MrJWW about to take his run in the @RenaultSportF1 car at the Ultimate Test Drive yesterday!

Infiniti UK @InfinitiUK

Shipping is the worst culprit when it comes to emissions I agree with your thoughts on vehicles belching out muck [Baggott, Issue 115]. What in the ’70s was seen as the sign of a good diesel (big plumes of smoke – never made sense to me anyway) is now seen, rightly, as a hazard.

And yes, everyday vehicles should be as clean as possible (enthusiast vehicles should also be incentivised to be converted where feasible, even if only with a crude particle filter or unregulated catalytic converter).

But there is a much bigger issue: shipping.

Put simply, there are about 80,000 oceangoing freight ships that burn heavy fuel oil that is 1,200 times more contaminated with sulphur than regular bowser diesel that has been available and used for almost all land-based transport for almost 30 years.

Only three ships kick out about the same particle, sulphur and soot emissions as ALL privately owned cars worldwide (about 800 million) in a year. All ships together emit about the same as all cars globally would over half a million years.

We should make sure that all bodies, etc, that can do so put pressure on the International Maritime Organisation and governments, etc, to demand immediate action instead of 2021 or even 2026 and then progressively fit filters, scrubbers and retrofit ships to compressed natural gas.

Yes, continue with cleaning up cars, trucks, buses, trains – and let’s not forget aviation – but the biggest immediate impact could be achieved with minimal effort and only about 1.5 per cent macro-economic impact by simply changing fuel from sludge to regular, ultra low sulphur diesel immediately.

Paul Rowney

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CarDealerMag.co.uk | 29

Dashboard.

Around the world Dealer news from somewhere other than here

Find out about the latest big industry appointments

Recruitment: p91 GERMANY

Lada is enjoying a boost in sales thanks to its new Vesta model, which went on sale in Germany this spring. The German arm of the Russian make told Sputnik International that Lada sales in the country had gone up by 50 per cent in the past year, with more than 1,000 shifted, mainly down to the compact car, some 600 of which have been sold. Germany’s largest daily newspaper, the Süddeutsche Zeitung, hailed it as the ‘best car that Lada has ever produced’.

CANADA

An Audi dealership in Calgary is to have a solar carport built.

Royal Oak Audi, in the province of Alberta, has signed a deal with UGE International Ltd to design and construct the 300kW project, which will cover 112 Audis. It’s estimated that the carbon offset will be 267 tons a year – equal to one passenger vehicle driving more than 590,000 miles – and it should be up and running in six months.

AMERICA

Google is hooking up with the USA’s biggest dealership chain, AutoNation, as it brings out its self-driving cars. AutoNation will repair and maintain the Chrysler Pacifica fleet of Waymo – the autonomous car development firm spun out of Google’s parent company, Alphabet.

CHINA

Premium Honda brand Acura expects sales in China to grow massively in the next three years. It said it was looking to sell 20,000 there this year – up from 8,143 last year – and 100,000 by 2020, reported China Daily. One new model a year will also be introduced.

NEW ZEALAND

A car dealer who was accused of misconduct and fraud has left his own business in Christchurch to become a salesman at a car firm owned by a church trust.

Nigel Thompson ran Nigel Thompson Motor Company, but it suffered financial problems and was saved when ex-Kiwis coach Frank Endacott and son Shane bought a half-share of the firm.

The partnership ended acrimoniously, though, after a forensic accounting report that the Endacotts commissioned. Thompson had earlier faced a court injunction from wholesaler AutoTerminal New Zealand to repossess its cars. Its affidavit alleged fraud and forgery, which Thompson denied.

He reached settlements with AutoTerminal and the Endacotts.

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

30 | CarDealerMag.co.uk

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

MAGAZINE

By advertising with Motors.co.uk your stock is automatically advertised on our extensive network of partner sites, reaching 5 million buyers each month.

Connect with Motors.co.uk 0845 265 6000 * sales@motors.co.uk

59378 110517

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

CarDealerMag.co.uk | 31

Dashboard.

Part 8: Advertising and building a website You’ve filled your forecourt and opened your doors. Now it’s time to show the world what you have for sale. Dan Read explains how.

O

nce upon a time, advertising a car was about writing a good classified with a half-decent picture. And that’s OK if you’re selling one privately. But what if you’re shifting 10, 20 or 50 cars a month? People expect way more.

Do you really need to tell them about split-

fold seats when you could give them a 360-degree video with engine sounds and more? Advertising is one of your biggest costs, and in a cut-throat world getting it right is the difference between life and death – in business terms at least. But fear not, we’re here to help...

WHAT’S THE FIRST STEP?

HOW DO I MAKE A SITE LIKE THAT?

Well, you could spend your days uploading ads to a million classified sites, from Auto Trader to Exchange & Mart, eBay and CarGurus or wherever. But think about it – let’s say you’re selling 20 or more cars a month. Doing separate uploads to the five big sites alone would mean writing 100 individual classifieds every month, along with all the images and admin. There’d be no time left to actually sell the cars.

That’s why, for the most successful dealers, advertising starts with your website. But it’s no good making a cheapo DIY site on GoDaddy and sitting back, waiting for clicks.

The best car sales sites are actually made for car dealers and use lots of online voodoo to get your stock seen.

Most importantly, your site should link to the classified providers, meaning you upload one advert to your site, which is automatically pinged to Auto Trader and others – saving you hours of mouse-work.

Chris Roach of Chequers Cars in Surrey knows a thing or two about all this. ‘Having a website without third-party exports would be like having a shop window with nothing behind it,’ he says.

‘And make sure you get a site that lets you export your ads to where you want, not where someone tells you to.’

Think of your website as a hub for all your operations. Not only is it a place to show off your stock, with images and videos and even live chat (which we’ll come to later), but it’s also your advertising base station. It could even be a place for online transactions, and for customers to apply for finance, again through an embedded third-party source.

32 | CarDealerMag.co.uk

Fear not – someone has already done it for you.

There are several companies that make sites specifically for car dealers, with all the behindthe-screens functionality built in.

Most let you choose from standard templates, to which they add your branding, so nobody notices it’s an off-the-shelf design.

Different providers offer different services and pricing plans – have a look at the products from Auto Trader, AutoWeb, Click Dealer and Spidersnet – though one of the most popular and affordable is Car Dealer 5.

David Cox, the Car Dealer 5 sales manager, says: ‘We offer a suite of templated websites to car dealers. From the most basic option to a responsive, mobile-ready website, dealers can pick a template to suit their budget, their customers’ requirements and the type of stock they sell. Our website designs will be fully branded to the dealer and generally ready to go within 24 hours.’

And what about those third-party feeds? Over to Cox again...

‘All of our templates feed directly into 15 of the main car sales websites, including eBay, Auto Trader, PistonHeads, CarGurus, Motors, AA Cars, Carfinance247, Gumtree and the RAC. As well as a Facebook showroom feed, we also offer additional services such as finance calculators, video showcases and live chat, depending on the dealer’s requirements.’

How much are we talking for this sort of site?

‘A fully responsive Car Dealer 5 website can cost as little as £450 +VAT per year,’ says Cox. ‘Our Elite package is £1,050 +VAT per year, which

includes many extras such as social media posting and monthly prices when finance integration is applied. With all of our sites you can edit your content on the fly, whenever you like, even via mobile.’

DO I STILL HAVE TO SUBSCRIBE TO THE CLASSIFIEDS? Yes. Sounds obvious, but even if you’re managing ads through your own site, you’ll still need accounts with any of the classified providers you use. Like it or not, Auto Trader is the most tempting, given how many people it reaches, but it’s also the most expensive, so be wary.

‘When starting from scratch, and assuming you’re not selling 50 cars a month, you could get on the Auto Trader bus, and although it probably is the best way to get started, it’s expensive, so try to get off as soon as possible,’ says Roach.

‘You can become very reliant on it, and in the long term you’ll be tied to their price increases.

We have a 50-car package, which costs around £41,000 per year…’

That’s an awful lot of cash to spend on one classified provider. OK, so as a newcomer it’s unlikely you’ll be advertising 50 cars at a time, but even the smaller packages aren’t cheap.

Some dealers we asked pay around £470 +VAT for a seven-car package on Auto Trader, whereas you could advertise 100 cars on motors.co.uk for about half that.

‘I’m very much a spread-bet advertiser,’ says Roach. ‘AA Cars, Exchange & Mart, Gumtree – I export to them all.

‘Consumers look at more than one platform, so spread your budget.’

IN ASSOCIATION WITH

FOR

GOT IT! SO HOW DO I WRITE THE PERFECT AD?

‘Text has become less important.

Customers are savvy.

They often know the car’s spec already.

It’s why images and video are the way forward.’

CHRIS ROACH, CHEQUERS CARS

E

SAL

Put down your quill and get out your camera.

In the not-so-old-days, a classified ad would list a thousand features with all sorts of acronyms such as PAS and ABS or FSH. Some of those are still important, but today people want to see everything in sparkling high definition from anywhere in the world.

‘Text has become less important,’ says Roach.

‘Customers are savvy. They often know the car’s spec already, and there’s no point writing that a three-year-old car has power steering. It’s why images and video are the way forward.’

Consider this: according to an Auto Trader study, 63 per cent of car buyers make their first steps to purchase based on photos.

The better they are and the more you take, the more confidence the customer has in the car, and

the more they’ll want it. And they’ll stay on your site for 13 per cent longer if you have a video tour of the car. It doesn’t need to be super-slick – a quick walkaround filmed on your phone is often good enough, especially if you focus in on details.

The same study also says that 78 per cent of customers search for cars after 6pm, and 74 per cent make inquiries after work hours. So instead of waiting to reply until the next morning, engage with them while they’re actually browsing via the magic of live chat – as we mentioned earlier, it’s readily available through most website providers.

Even if you’re doing the kids’ dinner or having a not-so-quiet pint, answering a quick question might make the difference between a deal or no deal. In fact, live chat is predicted to grow by 400 per cent in the next two years. That might not bode well for your relaxing nights in, but who ever said being a car dealer was easy?

CarDealerMag.co.uk | 33

Finance.

BCA

Partner Finance holds exclusive weekly sales

The Suzuki winter PCP deal line-up

PAYMENT PLANS

Suzuki announces winter PCP offers across its model range

S

uzuki Financial Services has

by DAVE BROWN announced its winter PCP @CarDealerDave finance offers across the range.

Its Celerio SZ2 City car is available The all-new Swift was launched for £89 per month payable over 48 in June and the 1.0 Boosterjet SZ-T months after a deposit of £1,945 is available on PCP with zero per and with an optional final payment cent APR plus nil deposit at a cost of of £2,206 to keep the car. As an £199 per month. This is a 42-month alternative, a deposit of £131 can be made to drive away an SZ2 followed by agreement, with a final payment of £5,135. Swift SZ-T is highly equipped 48 monthly payments of £131 and an with DAB radio, air conditioning, optional final payment of £2,206. smartphone link display audio, 16Launched in January, the Ignis inch alloy wheels and front fog lamps.

SZ3 is £10,999 and available for £159 Moving up to Baleno, a customer per month over 48 months with a saving of £2,000 is available on the deposit of £1,212 and optional final SZ3 model and £1,500 on the SZ-T and payment of £3,770. The Ignis range SZ5 models when linked to the 5.9 has a 1.2-litre Dualjet engine, air per cent PCP agreement. Taking an conditioning, DAB radio, six airbags, SZ3 as an example, a deposit of £813 rear privacy glass and body-coloured is required, followed by 48 monthly door mirrors as standard. One year’s payments of £159 and an optional free insurance and three years’ free final payment of £3,643. servicing are also included across the For 13:37:03 the Vitara models and range whenCarthe PCP option is taken.

Dealer Advert Horizontal 2.pdf 2 01/03/2017 C

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highlighting the 1.6-litre petrol SZ-T 2WD, a £2,849 deposit is required, followed by 36 monthly payments of £199 with an optional final payment of £7,486. For customers considering an SZ-T Vitara with Allgrip or a 1.6-litre diesel engine, the monthly payments increase by £30 together with a small increase in initial deposit.

Standard equipment specification for the Vitara SZ4 models upwards includes seven airbags, 16-inch alloy wheels, DAB radio with USB and Bluetooth, cruise control with speed limiter, front and rear electric windows and projector headlamps.

For S-Cross models, a £2,500 customer saving is included for Q4 when linked to a PCP agreement, reducing the list price of an SZ4 to £14,499. A total of 48 monthly payments of £189 is required after a £2,621 deposit. The optional final payment for this model is £4,790.

BCA Partner Finance is holding exclusive weekly sales for its customers at BCA Wolverhampton and BCA Manchester.

The sales feature a wide range of stock and Malcolm Thompson, managing director of BCA Partner Finance, said: ‘We want to build a community for our Partner Finance customers.

‘We have already put in place a national network of advisers to provide support in our auctions.

These exclusive sales bring more benefit and create opportunities for buyers to come together.’

Over a six-week period, sales in Wolverhampton have typically sold 98 per cent of entries the first time they are offered for sale and exceeded price guide expectations. Thompson added: ‘Needless to say, our vendors are extremely pleased with these results.

‘On the back of this success, we will be looking to roll out additional sales specifically for Partner Finance customers across other auction centres.’

BCA Partner Finance helps independent car and LCV dealers secure incremental funding to allow them to expand their retail operations. It was launched as a product specifically designed for the UK remarketing sector.

Funding is available for the whole auction purchase, and interest is charged at a flat rate.

IN ASSOCIATION WITH

Time is money BEN GARSIDE

A monthly look at the world of automotive finance and marketing

With so much happening, you must be ready for a future of change

W

ill the Bank of England’s monetary policy committee increase the base rate again soon?

I believe so.

On November 2, the committee finally agreed to raise the rate from a record low of 0.25 per cent to 0.5 per cent. This is the first rate increase after the longest period in living memory without an upward movement.

Just over a decade has passed since the last increase, when it went up to 5.75 per cent.

A number of the committee members (rate-setters) had been asking for an interest rate hike for many months and many economists believe that this increase was inevitable.

Following the increase, I have read many articles and most of the economists expect this increase to be followed by a few more over the next 36 months, leading up to 2020. Having fixed my mortgage earlier this year, I now wish that I had fixed my product for a much longer time frame.

The main reason I feel like this is that when I come to look at my product again in 2019, the rate could and probably will be at a much higher rate than I have just signed up to.

I believe it will also be higher than the five- or 10-year products currently available on the market.

I actually foresee another increase at some point soon after Christmas and then maybe another by the end of 2018.

However, I do not see any significant rate increases and my current thinking is that the monetary policy committee will more than likely introduce a few 0.25 per cent increases.

It will be run this way owing to the economy still being unstable

after many years of austerity and the on-going uncertainties around the country’s current Brexit negotiations.

Brexit will be a major influence over the next five years from a rate perspective. It’s well known that when the pound is low against other currencies imports are more expensive and this tends to push the consumer price index (CPI) up.

Since the Brexit referendum, we have had a weakened pound pushing prices up at their fastest pace in more than five years, with figures from the Office for National Statistics (ONS) showing CPI rising from 1.8 per cent in January to three per cent in September – the highest level since early 2012.

Bank of England governor Mark Carney is tasked with keeping inflation (CPI) at two per cent. However, he has been forced to write to the chancellor to explain why he has missed the inflation target by more than a percentage point.

In my opinion, we will see this volatility continue over the next two to three years, and it could drag out a lot longer.

However, this is because of a number of reasons, mainly Brexit, but also the fact that UK households are the second most indebted of the G8 nations.

Bank of England figures now show that unsecured consumer credit has risen by 4.9 per cent in the past year and the total has increased to £201.5bn in July 2017, which is the first time it has gone above £200bn since the financial crisis of 2008.

There’s a lot happening in the UK at the moment and, looking at it holistically, increased inflation, increased household debt, the base rate rising and economic instability mean we’re facing a future of change, so I would advise to be ready for it!

‘I actually foresee another increase at some point soon after Christmas.’

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

Turn over the page for more finance stories

CarDealerMag.co.uk | 35

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Finance.

YOUR ESSENTIAL GUIDE TO . . .CITY CARS

Skoda Citigo

Hyundai i30

THE Skoda Citigo is a cracking little car that takes everything customers need to go from A to B and wraps it up in one smart, affordable package.

It’s been updated for 2017 and is perfect for new drivers, the elderly or anyone who’s after a pleasant runabout without the need to carry lots of passengers or luggage. Skoda dealers currently have a fantastic offer on the Citigo Colour Edition. This model features a 1.0-litre petrol engine with 59bhp and is capable of achieving 64mpg.

Customers can pay £145 per month for 41 months after a deposit of £971.72, with Skoda contributing a further £1,000. At the end of the contract, a total of £7,916.72 will have been paid.

At this point, the customer can make a final payment of £3,151.90 to keep the car, bringing the total from both sides to £11,068.62.

THE Hyundai i10 is a great choice of city car for those on a budget.

The new 2017 model may be low priced compared with some of its rivals but it still has plenty of kit, especially for a car of its class and size, so it’s excellent for customers who essentially want the moon on a stick.

At the moment, there’s a tasty offer on the i10 SE with a 66bhp 1.0-litre petrol engine, which is good for up to 70mpg. This model is available for a monthly fee of £119 for 36 months.

There is a customer deposit of £2,012.08 and Hyundai will pay an extra £750. After 37 months have passed, £7,046.08 will have been paid in all.

The customer then has the option to pay a further £3,766.50 and keep the car permanently. If they decide to do this, the total amount paid by both sides will be £10,812.58.

ONLINE

Close Brothers website relaunched to improve journey for users C

lose Brothers Motor Finance has relaunched its website, with the intention of improving the user journey for dealers and customers.

The new website – at closemotorfinance.co.uk – is mobile-optimised, allowing easy access on the move. It will host more detailed information on what dealers can expect from Close Brothers Motor Finance and about the company itself.

As part of a streamlined customer journey, inquiries for a specific branch will be immediately directed to the right place, further improving the company’s ability to respond swiftly to customers.

There is also a new careers area, allowing potential candidates to explore the company and its culture before applying for jobs.

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by DAVE BROWN @CarDealerDave

Future developments will include a dealer content hub, with information and insight to help dealers’ businesses grow.

The brand refresh follows the revamp of the firm’s head office in Doncaster in September and the centralisation of all customer calls in January.

Close Brothers chief executive James Broadhead said: ‘Service is at the heart of everything we do, and we want dealers to have the best possible customer experience working with us. Having improved our in-branch experience significantly at the beginning of the year, with centralised customer calls and 13:36:04

improved dealer satisfaction, this website launch is the next step in our development.’

Close Brothers Motor Finance, which is a division of Close Brothers Group, was established in 1988 and works in partnership with more than 8,000 dealers. It was recently named BankOwned Independent Finance Provider of the Year at the European Motor Finance Awards 2017 and was highly commended as the Best Business Motor Finance Provider at the Business Moneyfacts 2017 Awards.

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

IN ASSOCIATION WITH

Toyota Aygo THE Toyota Aygo is a fun, stylish city car with great looks and good tech. It’s ideal for young customers who want a car that’s cheap to run and insure but still maintains a certain cool factor.

The Aygo x-press has a 1.0-litre petrol engine with 68bhp and a fuel economy figure of 68mpg. Among its key specifications are 15-inch alloy wheels, a multimedia system with Bluetooth and DAB radio plus a reversing camera.

Toyota is currently offering this model to customers for 41 monthly payments of £129. The customer deposit is £2,176 and Toyota doesn’t contribute anything. This means that at the end of the 42-month contract a total of £7,465 will have been paid.

The customer can then make an optional final payment of £4,590 to keep the car at the end of the contract period. This makes a total amount paid of £12,055.

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DEALER EXPERIENCE

Consumer new car finance volumes fall by 11 per cent as new business stays flat

Customer approval rises over previous quarter, says study

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FIGURES released by the Finance & Leasing Association in November show that new business volumes in the point-of-sale consumer new car finance market fell by 11 per cent in September compared with the same month in 2016, while the growth in the value of new business was flat over the same period.

In 2017’s third quarter overall, new business was up one per cent by value but fell nine per cent by volume.

The percentage of private new car sales financed by FLA members through the point of sale (POS) held steady at 86.0 per cent in the 12 months to September.

The POS consumer used car finance market reported new business in September up nine per cent by value and three per cent by volume, compared with the same month last year.

Geraldine Kilkelly, chief economist at the FLA, said: ‘The performance of the POS consumer new car finance market in September continued to reflect recent trends in private new car sales.’

NEARLY 90 per cent of consumers are positive ‘promoters’ of the dealer finance experience, according to a new independent survey commissioned by MotoNovo Finance.

The 89 per cent approval rating in the latest monitor report to the end of September was based on a telephone poll of 1,200 customers who had financed their used car within the first six weeks of their new agreement and showed that customer approval with the dealer finance experience had increased slightly over the last quarter.

Chief executive Karl Werner said: ‘Dealers make an important contribution to the customer in the speed and flexibility customers report and in the way they support the customer. It is very apparent that when consumers discover dealer finance for themselves, invariably most really like it.’

CarDealerMag.co.uk | 37

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FIRST DRIVE

Maserati Levante S GranSport

Chassis

The Levante features an electronically controlled differential.

James Baggott rejoices in the fact that this Italian sports car in SUV clothing now has a petrol powerplant What is it?

What’s under the bonnet?

Some might say the Levante has been the saviour of Maserati – and they’d be right. In a market that’s moving swiftly away from saloons in favour of high-riding off-roaders, even Italian sports car manufacturers need a 4x4 in their line-up if they’re to balance the books.

That’s why Lamborghini is putting the finishing touches to its soon-to-arrive Urus, Ferrari is secretly beavering away on a rumoured 4x4, and why Maserati launched the Levante a year or so ago.

Sadly, Maserati went off half-cock – launching its SUV in the UK with only a diesel. Now, the car that accounts for more than half of the Italian firm’s sales worldwide has been given the powerful petrol unit buyers wanted from the start, plus some tech tweaks to keep it fresh.

The biggest change is nestled up front. The petrol unit is the one the Levante should have been launched with and brings the SUV alive.

It’s been available on the continent for a while, but is now coming to the UK in right-handdrive guise and serves up 424bhp and 580Nm of torque from a Ferrari-developed 3.0-litre V6 twin-turbo. While the engine might not appear in any Ferraris, it does sound typically Italian on start-up – throaty and over the top – and is good for 60mph in five seconds and a top speed of 164mph.

It emits 253g/km and returns 25.9mpg on the combined cycle, too.

What’s new?

Don’t expect any radical styling changes from the 2018 model year Levante – they’re as hard to spot as an SUV mule from sister firm Ferrari. Squint and you might just see the new badging on the doors, but we’d forgive you if you missed them.

Aside from the petrol powerplant, which we’ll get to in a minute, Maserati has added a few new safety features to the Levante. There’s electric steering, which means active lane assist is now a possibility, as well as blind spot detection with ‘haptic’ feedback via the steering wheel.

There are revised trim options to choose from, too – a base model, a GranSport and GranLusso.

The differences are minimal between the top two and centre mostly around the colour of the grille and interior trim. As such, they cost exactly the same amount of money.

What’s it like to drive?

While an SUV is never going to be as dynamic as its low-riding saloon rivals, the Levante does a good job of pretending to be sporty. It’s certainly got an impressive turn of speed, and in the bends (of which our test course had very few) it felt taut and dynamic compared with some rivals.

It’s helped by a number of driver assistance modes, which lower the adaptive air suspension in sport and increase it when off road.

Maserati subjected our test cars to some soft, sandy dunes, but was forced to lower the tyre pressures before we were allowed to tackle them.

The clever electronically controlled differential certainly coped admirably with the conditions, though, and in the hands of a professional driver (we weren’t deemed capable), it managed to scale Dubai’s Fossil Rock at an impressive pace. That said, one did get stuck in the deeper dunes and a Toyota was forced to rescue it…

We didn’t get on particularly well with the new

THE KNOWLEDGE Model: Maserati Levante S GranSport Price: £76,995 Engine: 3.0-litre V6 twin turbo Power: 424bhp Torque: 580Nm Max speed: 164mph 0-60mph: 5 seconds MPG: 25.9 Emissions (g/km): 253 TARGET BUYERS: Italian sports car lovers who need space for their family and the dog.

THE RIVALS: Porsche Cayenne S, BMW X5, Mercedes GLC. KEY SELLING POINTS: 1. Italian cachet.

2. Ferrari engine.

3. Sporting credentials.

DEAL CLINCHER: It’s an interesting alternative to bland German offerings.

steering. Although light at parking speeds and now able to offer lane-keeping assistance, it’s lost some of the feel the hydraulic system that went before it had.

How does it look?

Maserati hopes the unique looks of the Levante will win it buyers. It won’t be to everyone’s tastes, though, with a huge gulping grille and shark-like proportions to its body. It’s been described as having an air of an Infiniti QX about it, and side by side you can certainly see a resemblance, but just don’t let the Italians hear you say it. It’s got a unique look on the road, with the eyebrowlike daytime running lights and quad tailpipes making a bold statement.

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‘Maserati hopes the unique looks of the Levante will win it buyers.’

Power

The 3.0-litre engine has been developed

by Ferrari.

Appearance

New badges distinguish the GranSport from other Levantes.

be, what’s shaping up to be the most important Maserati in decades seems to have negotiated its awkward early years and blossomed into the car many probably hoped it might be from the off.’

What’s it like inside?

Inside, the Maserati has some luxurious touches and the materials feel premium. Sadly, we found the leather seats incredibly uncomfortable, with the back rest particularly pew-like. The steering wheel is too chunky and has too many pointless buttons and the infotainment system is hard to fathom. Compared with intuitive units, such as the one found in Volvo’s XC90, the Maserati system looks outdated. There’s plenty of room in the back, though, a decent-sized boot, and new soft-close doors add an extra luxurious touch.

What’s the spec like?

Maserati has added a host of new tech. That electronic steering gives rise to active lane control, and highway assistance takes care of

Having a sand-tastic time... steering, braking and acceleration at speeds of up to 70mph. Blind spot assistance, traffic sign recognition, adaptive cruise control, forward collision warning and active braking are also on offer. A 360-degree parking camera, Apple CarPlay and Android Auto are welcome additions.

What do the press think?

Auto Express wasn’t particularly taken with the new Levante, awarding it just three stars. Autocar was kinder, handing out four and adding: ‘Praise

What do we think?

Maserati is probably kicking itself that it didn’t introduce the Levante with this petrol powerplant from the off. Buyers really couldn’t have cared less about the added expense a petrol unit carried over a diesel – they simply wanted the fastest, most expensive model there is. Those buyers will be satisfied with these results then, as the Levante now comes with the characterful engine it always deserved. It’s a shame the steering doesn’t live up to the hype, but most owners will soon see past that and instead enjoy all the benefits of an Italian sports car in SUV clothing.

CarDealerMag.co.uk | 39

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UNDER THE SKIN Under the bonnet What’s a modern Porsche without a decent engine? Well, the latest Cayenne has three.

There’s a turbocharged V6 in the base car, pushing out 335bhp, while a twin-turbocharged V6 with 434bhp features in the Cayenne S. The top-spec Cayenne Turbo, meanwhile, makes use of a 4.0-litre twin-turbocharged V8 with 540bhp. A hybrid version is in the works.

Porsche is also aware of the Cayenne’s need to be a successful tow car. As such, it now gets a shorter first-gear ratio, giving it better low-down pull – ideal for towing a trailer or caravan.

Body The new Cayenne’s body is predominantly crafted from aluminium. Not only does this increase the car’s rigidity by 20 per cent, it also lowers its weight to improve efficiency and acceleration. It’s now 63mm longer than the older car, too, meaning an additional 100 litres of boot space. Notice those ridges on the roof? They’re not there for a mechanical reason but have been created so that the entire shell doesn’t warp during thermal expansion.

FIRST DRIVE

Porsche Cayenne It’s longer but lighter, with a smaller engine that packs more punch – this new and improved model left Jack Evans suitably impressed What is it?

This is the third-generation model since the Cayenne’s 2002 launch, bringing with it better technology levels as well as elevated performance.

There are three models – Cayenne, S and Turbo – all offering a certain degree of sports-car-like performance transplanted in an SUV.

What’s new?

It’s lighter, with weight stripped back thanks to extensive use of aluminium throughout the body.

All the engines are downsized too but up on power – a benefit of turbocharging. A new eightspeed gearbox has been fitted to provide seamless shifts. Rear-axle steering is now available with the Cayenne – a first for the range – and this comes alongside Porsche’s new Surface Coated Brake, 40 | CarDealerMag.co.uk

which offers better stopping performance than a conventional brake. Inside, the Cayenne benefits from Porsche’s latest infotainment system.

it can actively decide how much force to send to the front and rear axles to generate the most amount of grip possible.

What’s under the bonnet?

What’s it like to drive?

Three powertrains are available with the new Cayenne and we tested the middle-powered S. This uses a bi-turbo 2.9-litre V6 engine that produces 434bhp and an impressive 550Nm. Sending power to all four wheels via an eightspeed gearbox, it lets the Cayenne S hit 60mph in just 4.7 seconds with the Sport Chrono pack fitted (5.0 without) – a second quicker than the car it replaces. All Cayenne models feature Active Porsche Traction Management too, which uses an electronically and map-controlled clutch to distribute torque between the wheels. This means

Despite being longer than the car it replaces, it’s 65kg lighter, and that makes a huge amount of difference, particularly when cornering the car’s lower bulk. You get very little roll, and the entire vehicle feels planted throughout.

The engine is something of a triumph, too.

Though smaller in capacity than the unit it replaces, it’s no less potent, packing 17 extra horses. It revs freely and never feels lethargic.

Our test car was fitted with upgraded ceramic brakes, which provide a huge amount of stopping performance – in fact, probably a touch over the

Infotainment systems The interior of the new Cayenne borrows a huge amount of architecture from the current Panamera saloon. That’s no bad thing, as the touch-sensitive buttons work well and give the interior a less cluttered appearance than before.

It even features voice recognition now – you can say ‘I’m cold’ and it’ll increase the temperature.

It also features a new rim protection system to warn the driver if they’re about to hit a kerb.

Aerodynamics The new Cayenne benefits from a variety of aerodynamic features the previous car didn’t have, eg, adaptive radiator flaps plus an adaptive roof spoiler that can also aid braking in an emergency, deploying in just 0.9 seconds.

Thomas Wolf, manager for aerodynamics for the Porsche Cayenne, said: ‘In the corners you want lots of lateral speed, but on the straights you want the least drag possible.’

THE KNOWLEDGE Model: Porsche Cayenne S Price: £68,330 Engine: V6 twin-turbo Power: 434bhp Torque: 550Nm Max speed: 164mph 0-60mph: 5.0 seconds MPG: 30 Emissions (g/km): 229 TARGET BUYERS: Those who want lots of practicality as well as sports car-beating performance.

THE RIVALS: Range Rover Sport SVR, Mercedes GLE63, Audi SQ7.

KEY SELLING POINTS: 1. Huge performance.

2. High-quality interior.

3. Dynamic handling.

DEAL CLINCHER: Thanks to new levels of technology and comfort, the Cayenne remains one of the key SUVs on sale today.

Braking Porsche is debuting an all-new braking system with the Cayenne. Called Porsche Surface Coated Brake, it sits in between a traditional cast-iron system and the high-performance carbon-ceramic brakes. Standard in the Turbo model, these new brakes benefit from a tungsten carbide layer, which reduces brake dust production by 90 per cent. They will soon be available across the Porsche range and, with frequent use, polish themselves to a mirror shine.

top for the likes of the Cayenne S. The steering, predictably, is superbly set up. There’s plenty of weight to it, and it remains accurate at both low and high speeds.

How does it look?

The front end is dominated by the larger air intakes, with the Cayenne and Cayenne S models getting silver-coloured slats. New three-module LED lights give the Cayenne a more imposing look at night, while the integrated light strip at the rear is a styling trait we’ve already seen on the Panamera – and it looks just as good here.

What’s it like inside?

The interior of the Cayenne is a great place to be and is worlds apart from the button-heavy cabin

found in the previous-generation car. The large 12.3-inch infotainment screen gives access to media and navigation functions, and is clear to use as well as being impressively responsive.

Apple CarPlay is now included as standard to give seamless integration between your smartphone and the car’s system.

It’s also been made more practical, with 100 litres of extra space to play with, totalling an impressive 770 with the seats up, rising to 1,710 with them lowered.

What’s the spec like?

The new Cayenne S comes in at £68,330. It justifies this price tag, though, with a distinct sense of quality, as well as a decent amount of standard material, including front and rear

parking sensors, cruise control, LED headlights and the large infotainment system.

What do the press think?

Auto Express said: ‘If you want a large SUV with the performance and handling of a sports car, the Porsche Cayenne is it.’ Top Gear said: ‘The Cayenne remains the king of driver-friendly SUVs. A very complete machine.’

What do we think?

The new Cayenne needed to be well sorted to live up to its predecessor’s reputation and, thankfully, it is. Porsche always thought of the Cayenne as a ‘sporty’ SUV and that’s certainly the case with this model. It rides and handles like a car half its size, offering plenty of space and practicality, too.

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FIRST DRIVE

Kia Stonic Kia Motors UK chief executive Paul Philpott tells of his hopes for the crossover What sets the Stonic apart from the other SUVs? It has all the Kia values. It’s backed by a seven-year warranty and it’s very clearly a Peter Schreyer design, so it fits into our design evolution, and the engineering of all our products is improving all the time.

Who would you say your target demographic is for the Stonic?

It’s couples with families, ideal for getting your younger children in and out. I think it also has a role as a second car in a family where the first car is a much bigger car.

Which variant do you think will be the most popular?

The ‘2’ will be the bigger seller but I think the First Edition gives that eye-catching presence on the road with its two-tone roof – in the first

six months or so, the First Edition will be very popular.

How has your dealer network reacted to the Stonic so far?

We put 700 of our staff through a product masterclass recently up near Sheffield and their reaction to it was just excitement. They see this as another step forward for Kia and another opportunity to go grab new customers that hadn’t even thought about Kia before.

When can we expect to see an electrified Stonic?

We’ve already got our Soul EV and hybrid Niro, so there are no plans to bring electrification to the Stonic. I’d never say never, but electrified vehicles are still less than five per cent of the market, and we’ve already filled that small SUV niche.

What would you say is the biggest challenge facing Kia in the UK? I’d definitely say the uncertainty of where the hell the car market is going from here. We’ve seen the car market since April 1 decline by almost 10 per cent, we’ve managed to keep ourselves ahead of that and have just had a record September, but the increasing uncertainty around what’s going to happen in the next 18 months and if there is going to be a transition period, that is probably our biggest fear. We are not a UK car manufacturer, we are an importer from the EU, from Slovakia – our Slovakian car plant – and we want certainty over customs processes, trade barriers and tariffs.

Where are we going to sit in all that? I guess the biggest issue is the impact of the political and economic uncertainty on the car market.

... and Simon Davis gets behind the compact SUV’s wheel to deliver his verdict What is it?

Based on the same platform as the Rio supermini, the Stonic represents Kia’s hopes of cashing in on a very lucrative market, combining handsome looks with funky colours, a solid build and attractive prices.

What’s new?

Where buyers will find the Stonic more appealing than the Rio, at least in Kia’s mind, is through the added passenger and luggage space, as well as the greater sense of security that higher-riding cars seem to bring.

What’s under the bonnet?

The top-of-the-line 1.0-litre threecylinder turbocharged petrol engine 42 | CarDealerMag.co.uk

in our test car develops 118bhp and 171Nm, which allows the Stonic to complete the dash from 0-60mph in 9.9 seconds and go on to 115mph.

Power is sent to the front wheels via a six-speed manual transmission.

terrible, but the taller stature means there’s a considerable amount of lean through the bends, and the seats don’t provide much in the way of lateral support, either.

What’s it like to drive?

What Car? said: ‘The Stonic handles tidily and is well equipped but could be more practical and higher quality inside.’ CarWow said: ‘The Kia Stonic is simple to use [and] well equipped but alternatives have better interior quality and more rear seat space.’

Similar to the smaller Rio, the Stonic is an incredibly easy car to drive. The pedals are well weighted and the six-speed gearbox has an assertive action to it – even if the throw is slightly too long for our liking. The steering provides a decent amount of feedback and makes low-speed manoeuvres a doddle.

Handling-wise, it does leave you wanting somewhat. It’s by no means

THE KNOWLEDGE Model: Kia Stonic First Edition Price: £19,695 Engine: 1.0-litre three-cylinder petrol Power: 118bhp Torque: 171Nm Max speed: 115mph 0-60mph: 9.9 seconds MPG: 56.5 Emissions (g/km): 115

TARGET BUYERS: Younger, urban-dwelling buyers and families looking for a smaller secondary car.

THE RIVALS: Seat Arona, Hyundai Kona, Citroen C3 Aircross.

KEY SELLING POINTS: 1. Affordable price tag.

2. Solid build quality.

3. Seven-year warranty.

DEAL CLINCHER: Buyers will be drawn to the Stonic because of its reasonable starting price and seven-year warranty.

What do the press think?

What do we think?

Our feelings are a bit mixed. On the one hand, it’s a competent, easy-to-

drive compact crossover that will be able to handle the demands of the average urban family well. If we were to be cynical, though, it does feel like it’s been built purely to cash in on a lucrative market and is a bit devoid of character as a result.

THE KNOWLEDGE Model: Arona Xcellence 1.0-litre Price: £21,040 Engine: 1.0-litre turbocharged petrol Power: 94bhp Torque: 175Nm Max speed: 107mph 0-60mph: 11.4 seconds MPG: 57.6 Emissions (g/km): 111 TARGET BUYERS: Younger families who still want a good degree of style as well as practicality.

THE RIVALS: Volkswagen T-Roc, Hyundai Kona, Citroen C3 Aircross.

FIRST DRIVE

KEY SELLING POINTS: 1. Low entry price.

2. High-standard equipment levels.

3. Involving drive.

Seat Arona Jack Evans gets behind the wheel of the compact crossover and finds that it’s got plenty on offer to hold its own against the competition in a booming market

DEAL CLINCHER: The Arona makes a solid case for itself, blending a competitive price with highstandard equipment levels.

What is it?

What’s it like to drive?

What’s the spec like?

In what began as a steady stream, the new Seat Arona joins a veritable tidal wave of new compact crossovers set to flood the market. Using the platform from the current-generation Ibiza, the Arona offers that all-important high seating position but in a more compact package.

The steering has a surprising amount of weight to it, and when combined with the car’s low weight and eagerness to grip it’s a lot of fun to drive, particularly on twisty roads such as those on our Spanish test route.

There’s not all that much body roll, yet it remains soft and supple over inconsistencies in the road surface. On the motorway, it feels composed and stable – far more so than you’d expect in a car of this size. Wind and tyre noise are kept impressively low, and it all gives the impression of a far larger car than it truly is.

There are six spec options and the range starts with SE, bringing with it 17-inch alloy wheels, a five-inch colour touchscreen and air conditioning SE Tech adds to this with a full media package, including sat nav and rear parking sensors. From there, FR trim contributes a sporty look and feel to the Arona, with large 17-inch alloy wheels and a sports bodykit giving added presence on the road. FR Sport then brings 18-inch alloy wheels and chassis control. Lastly, Xcellence and Xcellence Lux get the bumper crop of options, with additions including a chrome front grille, rear-view parking and machined alloy wheels.

Prices start at £16,555 for an SE model with a 1.0-litre engine – an impressively low price given the amount of equipment on offer as standard.

What’s new?

It’s a mixture of the familiar and not-so-familiar with the Arona. The exterior looks much like that of the larger Ateca, while the interior will be instantly recognisable to anyone who has driven a current-generation Seat product.

Engines start with a 1.0-litre turbocharged petrol in three different power outputs, rising to a 1.6-litre diesel – again, with a trio of power choices. There are also five-speed, six-speed or dual-clutch automatic ’boxes.

What’s under the bonnet?

The range starts with a 1.0-litre turbocharged petrol with either 94bhp or 114bhp, sending power to the front wheels via a five-speed, sixspeed or dual-clutch automatic – though the auto is only available with the more powerful engine.

There’s also a more powerful 1.5-litre turbocharged petrol with 148bhp, as well as one 1.6-litre diesel pushing out either 94 or 114bhp.

The smaller petrols are more than up to the challenge of powering the little Arona along, but if you’re planning on undertaking more motorway miles then we’d opt for the diesel.

It’s worth mentioning, however, that the 1.5-litre engine is only available in FR-spec cars.

How does it look?

In our eyes, the Arona is a very handsome car.

FR trim cars benefit from a sportier look, while Xcellence models feature a glitzy chrome grille – a good way of differentiating the trim level from the rest of the range. There’s a huge number of customisation options available with the Arona, with nine exterior body colours alongside three roof colour choices to pick from.

What’s it like inside?

Given the compact chassis on which it’s based, it’s quite remarkable how much space is on offer in the Arona. Those in the front are well catered for in terms of head and shoulder room, while those in the rear are equally well looked after.

There’s also 400 litres of boot space to play with, which can be increased to 823 litres by lowering the rear seats. The space itself is square and although there’s quite a high load lip, it’s easy to access.

What do the press think?

WhatCar? said: ‘The best small SUV at this price point – the Seat Arona is good to drive, roomy inside and fairly affordable to own.’ Autocar said: ‘The Arona is a bit pricier than its direct rivals, but there’s a good reason for that: it’s a better car.’

What do we think?

There’s no doubt the compact SUV market is booming – this year we’ll have seen a new release in the segment from nearly every manufacturer.

However, Seat has provided a serious offering with the Arona. It’s well styled, good to drive and competitively priced. In short, it’s well worth considering and can more than handle any competition it has coming its way from the likes of Volkswagen and Hyundai.

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FIRST DRIVE

Hyundai Kona Hyundai Motor UK boss Tony Whitehorn wants to polarise opinion with this SUV What sales figure do you hope to achieve with the Kona?

In its first full year we’re looking at something between 10,000 and 12,000 sales. Next year we have the introduction of the diesel and the EV, so we might have under-called it a little bit. The EV could be amazing saleswise, as it has a range of 300 miles, so it’s a proper EV. So that’s the unknown quantity, and will be determined by availability and price, and that in itself will depend on taxation, whether the government will continue with the £4,500 towards the car or make it more expensive, or cheaper.

Who is the target market for the Kona?

I always find that an interesting question. We might market it at young and upcoming people but

everyone thinks they’re young and upcoming. So you market at that group but really it’s for everyone.

Will there be an ‘N’ version? If so, when will it arrive?

At the moment there are no plans for one. The only ‘N’ car we are looking at currently is the i30, and we’re monitoring that to see how it goes. However, we will look at introducing an ‘N-line’ version.

So the chassis is totally bespoke?

Absolutely. And because it’s also an SUV chassis it drives differently to a car. That’s why we can put four-wheel drive in it, because it has those SUV credentials already.

What was the idea behind the design?

It’s not often there are parts of this

marketplace where you can be different and dramatic. The whole thing about the Kona is that it needs to emotionalise people and isn’t necessarily a rational purchase. I think the worst thing you can do is have a vanilla car in this segment.

Some people might not like it but some people will love it, and I think a polarising vehicle in this segment is absolutely the right thing to do.

How important is the Kona to the Hyundai line-up?

Our history has been built on being a rational purchase. We want to add emotion into the mix, as people have viewed Hyundai over the years as a very vanilla brand. If someone buys a car from an emotional perspective, they’re much more likely to be loyal to that brand than if they’d made a rational purchase.

Is the Kona a real B-segment contender? Aidan Rennie-Jones finds out...

What is it?

The Hyundai Kona is one of the latest additions to the ever-changing crossover segment. However, this one seems slightly different, taking funky to a more premium level.

What’s new?

The whole car is. Based on an entirely fresh and bespoke platform, the Kona is also a step for Hyundai into B-segment SUVs, and it’s a real contender against its rivals.

What’s under the bonnet?

There are currently two petrol models to choose from: a buzzy three-cylinder 1.0-litre with 118bhp or a 1.6 T-GDi four-cylinder with 44 | CarDealerMag.co.uk

128bhp. Both are frugal, but for performance the 1.6 T-GDi makes more sense. A diesel will be added to the line-up in a year’s time, with 113bhp and 134bhp powertrains.

What’s it like to drive?

With ‘Comfort’ driving mode selected, the refined automatic transmission seamlessly changed gear unless pushed really hard, when it started to judder or wouldn’t change down quickly enough – an issue on the twisty back roads of Barcelona’s hills. In ‘Sport’ mode, however, the gearbox seemed to liven up and changed much more frequently into the gear you actually wanted. The steering

THE KNOWLEDGE Model (as tested): Premium GT 1.6 T-GDi 177PS seven-speed

DCT 4WD Price: £24,995 Engine: 1.6-litre petrol Power: 128bhp Torque: 265Nm Max speed: 127mph 0-60mph: 7.7 seconds MPG: 42 Emissions (g/km): 153 TARGET BUYERS: All market groups.

THE RIVALS: Citroen C3 Aircross, Kia Stonic, Seat Arona.

KEY SELLING POINTS: 1. Quirky styling.

2. Slightly more premium than its rivals.

3. Excellent warranty package.

DEAL CLINCHER: Better to drive than its rivals.

didn’t give much feedback. But that’s missing the point of the Kona – it’s a family cruiser and that’s something it does with aplomb. Our car was equipped with four-wheel drive, which really was noticeable on sharp country roads, where the car hardly leaned and gripped like glue.

What do the press think?

Top Gear said: ‘It’s probably the most outrageously styled Hyundai the world has ever seen.’ Auto Express said: ‘The Hyundai Kona doesn’t do too much wrong – but it doesn’t do anything spectacularly well, either.’

What do we think?

The Hyundai Kona is a practical

and quirkily styled car. It’s sitting in what seems to be an ever-expanding segment, though, so we’ll have to see whether it’ll stand out enough for buyers. It’s expensive, too, compared with rivals. However, factor in the five-year warranty and equipment levels on offer and the Kona makes much more sense.

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CarDealerMag.co.uk | 45

Feature.

OVERVIEW

Enjoying the weird and wonderful – plus lots more besides

by REBECCA CHAPLIN @believebecca

T

his year was my first time at the Tokyo Motor Show and Japan itself. It gave me an excellent opportunity to find out not only about a completely different car market but what is also a Mecca for car design and production.

This meant we got to see plenty of weird and wonderful concepts as manufacturers honoured their home market’s style. However, the quirky stuff seemed to be lacking. Take from that what you will about the Japanese car market...

Of course, almost every manufacturer had a brand-new electric vehicle to show off too, but which would steal the show?

Honda’s Sports EV Concept was a huge draw for me, but I’d already fallen in love with the Urban EV so it was bound to happen. The cute and sleek style of the sports car went down well with many at the show, but unlike its city car sibling it’s not confirmed for production yet.

Mitsubishi was a big hit with its e-Evolution concept, but equally some were disappointed that this would be the first car for the Japanese brand to bear the Evo name without any rallying credentials. However, with the Outlander plug-in hybrid doing so well for the manufacturer, it was only a logical step that it would pair its off-road knowledge with a fully electric powertrain.

Both Baggott and I also took in some more of what Japan has to offer for car buyers and designers. I found out more about Nissan’s electric vehicles (again) while James found out about the next generation of Mazdas. He also went to South Korea for Kia and Hyundai’s Ideas Festival and came back with a few of his own. Take a look over the next few pages to find out more.

46 | CarDealerMag.co.uk

Toyota Century One of the biggest icons in the Japanese motoring industry will see only its third generation in a 50-year production span.

This new Century replaces a car that’s been in virtually unchanged production for 20 years.

The new luxury car features a hybrid system paired to a perhaps unexpected 5.0-litre V8 engine.

TOKYO

SHOW STARS The Tokyo Motor Show is always guaranteed to throw up some wild and wonderful ideas from the motoring world and this year’s event at Tokyo Big Sight was no different – we’ve rounded up eight of the coolest cars that we saw there.

Subaru Viziv Concept Subaru’s last WRX concept was a hit at 2013’s New York Auto Show, but sadly the brash nature of the concept didn’t properly translate into the road car. The Viziv Concept unveiled at Tokyo this year previews the next WRX, and from the teasers it may have a similar impact to the 2013 car. Time will tell, though, if it makes it to production this time…

Mitsubishi e-Evolution Concept Mitsubishi revived the Evolution name at this year’s Tokyo Motor Show with the e-Evolution concept. Unlike its rally-car-for-the-road predecessors, though, the new e-Evolution concept will be an SUV featuring a powerful allelectric drivetrain.

Nissan Leaf Nismo The new Leaf was only recently revealed, but Nissan showcased the potential for a performance version of the new-generation electric car. The Nissan Leaf Nismo Concept features more aggressive styling tweaks, retuned suspension, performance tyres and a more responsive throttle that Nissan says creates a ‘thrilling drive’ — although there’s no word on increased power from its electric motor.

Toyota TJ Cruiser Toyota showcased its TJ Cruiser Concept at this year’s Tokyo show — which it used to test public reaction to a lifestyle-focused SUV. It features a boxy, rugged design with van-esque carrying capacity to hold anything that owners may want to throw at it.

Nissan IMx Nissan showcased a concept developed entirely around its Intelligent Mobility technology — meaning tons of autonomous technology and kit to make driving safer. The electric SUV claims 373 miles of range, 429bhp and 700Nm of torque – more than a GTR.

Mazda Design Vision Concept Previewing the next step in Mazda’s design language, the Design Vision Concept headlined the Japanese manufacturer’s Tokyo line-up. The concept shows a four-door sleek saloon car, almost in the style of a modern-day RX7. Expect the dramatic stylisation to be replicated across future Mazda models.

Honda Sports EV Honda arguably stole the Frankfurt Motor Show with its funky Urban EV Concept — and it arguably did the same at Tokyo. The Sports EV Concept previews an all-electric sports car that could replace the legendary S2000. It’s not confirmed for production yet but the motoring world is holding its breath.

CarDealerMag.co.uk | 47

Feature.

NISSAN

Electric vehicle concept hints at large crossover NISSAN unveiled at the Tokyo Motor Show what will become its next electric vehicle.

The concept car, named the IMx, hints at the possibility of a large crossover with an electric powertrain and equipped with autonomous driving.

The senior vice-president for global design, Alfonso Albaisa, revealed at the show that this car fits into the C to D segment and is slightly longer than the current Qashqai at 4.7m. Albaisa added, as hinted at by the head of Nissan’s global sales and marketing division Daniele Schillaci at the car’s unveil, that we should be seeing the production car within the next three years.

Nissan also revealed at its press conference a new sound that all of its EVs will produce.

‘The sound you just heard was the sound of the future. It’s a sound that we call Canto. Soon it will be heard from our Nissan cars on streets around the world,’ said Schillaci.

The tuneful hum – an almost musical version of the traditional car engine – answers a problem faced by electric cars for many years.

It means Nissan EVs will retain a recognisable sound while also making pedestrians and other road users aware of the car’s presence.

Nissan IMx concept

SUZUKI

Wraps are taken off Jimny’s replacement SUZUKI revealed its e-Survivor at the Tokyo Motor Show and answered the question on everybody’s lips – what will eventually replace the Jimny?

The concept has permanent electric fourwheel drive, rugged looks and an almost menacing, electrified Mad Max appearance.

To add to the beach buggy look, the roof is removable, with a T-bar staying in the middle.

COMEBACK

Mitsubishi revives unveils e-Evolution M

itsubishi unveiled the look of its future SUVs at the Tokyo Motor Show and revived a revered badge in the process.

The e-Evolution concept is an off-roader that showcases a clever electric powertrain, bold styling and autonomous technology that is ‘pointing towards the future’, said Mitsubishi sales and marketing director Toby Marshall.

Speaking at the Tokyo show, Marshall said: ‘The e-Evolution is a concept that pulls together everything about where Mitsubishi want to go. So that’s SUVs that are electrified, sporty and fun to drive. It’s all those things merged into one and a real indication of what’s to come.’

Fans will be pleased to see the Evo badge making a comeback. For years, it was found on the brand’s most popular performance models

but died out with the Evo X. Now it’s back and – somewhat surprisingly – on the back of an SUV. Marshall explained this was because sporting credentials will play a big part in the Mitsubishi SUVs of the future.

He said: ‘The looks – sporty and purposeful – are key. It’s also got impressive technology too – like electric motors for the back wheels and the front. It shows we are about SUVs in the future that are fun and sporty to drive.’

The looks are likely to form the basis of Mitsubishi’s Nissan Juke-sized model due in late 2018/early 2019.

HONDA: Sports EV Concept suggests that performance SHOWN at the 2017 Tokyo Motor Show, the Sports EV Concept hints at the potential for a future performance vehicle.

It mimics the boxy, retro styling seen on the Japanese manufacturer’s Urban EV Concept at the Frankfurt Motor Show in September.

48 | CarDealerMag.co.uk

by JAMES BAGGOTT @CarDealerEd

Honda says the car was designed ‘to deliver a feeling of joy and emotional unity to the drive, achieved by efficiently combining the EV power unit and AI technology in a compact body shape’.

Although no exact details of the vehicle’s powertrain have been disclosed, Honda has

TOYOTA

‘Game-changing’ EV solid-state batteries ready ‘in early 2020s’

‘The looks – sporty and purposeful – are key.

It’s also got impressive technology too.’

Toby Marshall

Evo badge as it concept in Tokyo Marshall also said that Mitsubishi managing director Lance Bradley’s decision to step down from his role next March had come as a shock to everyone in the business.

‘It was a surprise to all of us. When Lance announced it to staff it was an emotional thing for him and the staff members, and I think dealers will be surprised, although he’s not going soon – he’ll be around until at least March and then some time after that in the vice-chairman role. He’s done an amazing job – he’s been an inspirational person to work for and a lot of people at CCC will say the same thing.’

Marshall wouldn’t be drawn, though, on whether he would be applying for the role, saying Bradley’s were ‘big shoes to fill’.

He explained that recruiters would be looking

internally and externally for a replacement.

‘Lance sent a very comprehensive note out to dealers explaining what he is doing and why, and that there would be a replacement recruited.

‘It’s business as usual and shouldn’t be something to worry about,’ he said.

Marshall also explained that although the market was currently down, business was pretty buoyant for Mitsubishi, as the markets it competes in – SUVs, ULEVs and pick-ups – were all up.

He added: ‘Our sales are going pretty well.

On the fiscal year we are slightly up on last year, and we have got lots of plans and things that are happening that will increase sales further as the year goes on.

‘We are fairly optimistic.’

NEXT-generation electric vehicle batteries are just a few years away from entering production, according to Toyota.

The car giant has revealed it could have solid-state batteries – considered the next step to making electric vehicles (EVs) more affordable and usable – ready for production vehicles ‘sometime in the early 2020s’.

Toyota executive vice-president Didier Leroy made the revelation as part of a wider speech on the company’s future. He explained that although the company didn’t have any pure EVs yet, ‘we have no doubt that EVs will be one of the key solutions in the near future’.

He said: ‘We have invested in advanced battery research for a very long time, and we believe our solid-state battery technology can be a game-changer with the potential to dramatically improve driving range.

‘We are the leader in the field in terms of intellectual property, and currently we have more than 200 engineers working hard to be able to commercialise this technology sometime in the early 2020s.’

Solid-state batteries replace the liquid found in traditional batteries with a solid material.

The advantage is that the battery becomes more energy-dense so it can be smaller. It’s also cheaper because fewer raw materials are needed, it can charge more quickly and generates less heat.

However, finding a solid material that can effectively store energy at the same levels of existing liquid-based lithium-ion batteries has long proved a stumbling block.

Toyota has created a technology company with Mazda and automotive component maker Denso to work on EV technology.

‘We have invested in advanced battery research for a very long time.’

Didier Leroy, Toyota executive vice-president

vehicle is on its way revealed it is fully electric. The Sports EV Concept hasn’t been confirmed for production, but if it’s built it’ll be Honda’s first mid-range sports car since the S2000 ceased production in 2009.

Also displayed was the Urban EV Concept, Honda Sports going on sale in Europe in 2019.

EV Concept CarDealerMag.co.uk | 49

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Feature.

Video mirror

TECHNOLOGY

Nissan Leaf

One thing we definitely won’t be getting in the UK (yet) is a rearview mirror playing a live video of what’s behind you. Why would you need this? We have absolutely no idea. However, it does hint at a future where drivers could get warning alerts displayed here as well as on their screen.

Rebecca Chaplin went to Yokohama to find out more about the latest version of the all-electric five-door hatchback

Autonomous drive The new Leaf becomes Nissan’s first European car to get ProPilot – the manufacturer’s own autonomous system. For an affordable car it works surprisingly well. We got an opportunity to test the self-driving features on the motorway, where the Leaf can lock on to a car in front. The driver simply hits the ProPilot button on the steering wheel, selects the speed, and when it detects the white lines it’ll steer for you too.

FULL DISCLOSURE

Giving into temptation after managing to resist lunch straight after breakfast

Y

okohama is the birthplace of Nissan, where its original headquarters were based before it moved into central Tokyo. The car maker has relocated back to this region, though, boasting a glossy new building and exhibition space, where it’s hosting us today.

It’s a fitting place to try out a Japanese version of its all-electric Leaf. While it’s not exactly what we’ll get on this side of the globe, it gives a good indication as to what the car is capable of.

Compared with other electric cars on the market, the Leaf arguably sits in a sweet spot between price and practicality. Improved range and tech toys have been added without a sacrifice to cost, 52 | CarDealerMag.co.uk

space is perfect for a family and buyers will be able to save money on the road and at home.

We’re on the coast of Japan, on a 240,000 square metre man-made island. The roads here are quiet and sedate. It’s about 10am, so most people are at work, but it does feel almost desolate.

We’re driven on a bus to what is the second biggest city in Japan after Tokyo, and our Nissan guide points out shopping centres that would appear busy on weekends, but right now it’s completely deserted.

The day continues as quirkily as any Japanese event. Although we’d just had breakfast in the hotel we’re told our packed lunch won’t last

until after the test drive, so if we want it we must eat it now. I’m confident I’ll last without it.

Everything runs to time in Japan, and when we arrive at Nissan the previous French groups have been held up, causing confusion among the staff, but we’re quite happy taking a glance around the displays. Here the IDx concept sits, a selection of new Leafs next to GTRs, and a Nismo Note – packing an incredible 78bhp.

The next bit is full disclosure of the event.

The information that follows is as much as I can garner from 30 minutes driving a Japanesespec car. We had to drive in formation behind an Infiniti Fuga (yes, they rebadged it) and the

Interface While the Leaf’s dashboard is lacking a little pizzazz, it’s clear, bright and easy to use. Whether it’ll be different when it comes to the UK we’ll have to wait and see, but we’re guessing the chirpy Japanese voices will disappear.

Parking It’s nothing new, as some cars have had the kit to park themselves for years, but Nissan’s system is a little different. The fatal flaw with most systems is they can’t identify the space you’re trying to park in. Accepting a little human interaction has fixed this though, as the Leaf can sense spaces with lines or you can choose exactly where you want to park – driving forwards or backwards.

Increased range Although the final homologation for the UK hasn’t been completed, it’s expected that the new Nissan Leaf will be able to achieve around 235 miles on one full charge.

majority of our time was spent on the motorway.

This is the best place to try out the autonomous driving feature though, and it’s true you do need a car to follow. This was my first time trying out a car that drives itself and I’m not sure why anyone would worry about drivers not paying attention, because all I’ve ever seen anyone do is exclaim ‘Look, it’s driving itself!’ when it does.

It is really simple on a Nissan, since you can see on the dash when it’s identified points to follow, then you take your hands off for as long as the car will let you and watch as it steers itself.

I know you’re not supposed to do it, but I defy

anyone not to when they try for the first time.

We were reasonably well behaved in our car but others report that they’ve tried using lanyards to trick the car into thinking someone is still in control, and it works. Importantly, we do try how fast it gets away. Despite being an electric car with 320Nm of torque available, it’s not particularly speedy off the line.

Arriving at Bayside Marina, we’ve got a car park to ourselves to try out the self-parking features.

Again, the area seems deserted and we’re shuffled into an equally empty hotel restaurant for half a cup of tea before being told we have to leave again.

Getting to try out the parking is actually impressive though, as it worked seamlessly, albeit quite slowly.

But as someone who’s tried plenty of these systems up and down the country only to See over page end up looking

Nissan Leaf driven

like a woman who can’t park, this was truly a breath of fresh air.

CarDealerMag.co.uk | 53

Feature.

Space

Inside the cabin and boot, the Leaf isn’t sacrificing space to allow for batteries.

FIRST DRIVE

Nissan Leaf

Handling

Rebecca Chaplin took to Japan’s roads for a short spin in the new generation of the EV and found that what it lacked in style it more than made up for with tech

It’ll be tighter when it comes to the UK, but here it’s perfectly matched to the roads.

What is it?

What’s under the bonnet?

What’s it like to drive?

This is Nissan’s all-electric vehicle that has been in desperate need of a new look for years, but Leaf fans have continued to love and buy the previous generation regardless. It’s a five-seater family car with buckets of new tech to bring it up to date. We got a brief opportunity to drive a Japanese model on roads around the brand’s Yokohama headquarters, but there’s still plenty to change before it reaches the UK.

Currently, there’s just one option. With a 40kWh lithium-ion battery fitted, it’s got a power output of 110kW or 147bhp and 320Nm of torque.

At the moment, Nissan is saying this will be able to power the car for around 235 miles.

Although the car hasn’t yet been homologated for the UK, when compared with the previous generation this appears attainable. One thing’s for certain, it’ll have zero emissions and owners will use no more fuel than the electricity to charge it.

In the very short test drive we took the car on, over Japanese roads that tend to have both smoother turns and smoother surfaces, things look positive.

Power delivery is as smooth as you’d expect from an electric car but the extra torque in the latest generation is a marked improvement.

The biggest change from the previous Leaf, or any car for that matter, is the e-Pedal. Almost every electric car uses regenerative braking and you can feel that feedback in the accelerator as you release it. This means many EV drivers barely use the brake pedal.

The difference with the e-Pedal is it’ll hold the car once it’s stopped, even on an incline according to Nissan.

This Leaf will be the first Nissan to be sold in Europe with the ProPilot system. Our drive proved how easy this is to use, as by simply pressing the button on the

What’s new?

For owners, the most important update will be to the powertrain, as the new Leaf will now drive further and for longer.

There are other new driver aids though, such as Nissan’s autonomous system called ProPilot, which can now park the car and drive itself under certain conditions, and the e-Pedal, which can brake the car as you release the accelerator pedal.

54 | CarDealerMag.co.uk

Charging

The Leaf keeps its charging point under the badge but gets a front end to match Nissan’s new identity.

THE KNOWLEDGE Model: Nissan Leaf Price as tested: N/A Engine: 40kWH battery linked

to electric motor Power (bhp): 110kW/147bhp Torque (Nm): 320 Max speed (mph): 90 0-60mph: Eight seconds MPG (combined): 0 Emissions (g/km): 0

‘The Leaf does arguably look better than the previous generation, but compared with other EVs on the market it’s lacking some serious style points.’ steering wheel and selecting the speed you want, the Leaf will instantly lock at a specified distance behind the car in front and when it clocks the white lines it’ll take over steering too.

It can also park itself at the touch of the button and it worked seamlessly for us. The Leaf even lets you choose a space, unlike other systems, and it can do this forwards, backwards or parallel.

How does it look?

The Leaf does arguably look better than the previous generation, but compared with other EVs on the market it’s lacking some serious style points. That said, the Leaf is now more in line with Nissan’s other products, and touches such as the pearlescent grille add a tad more drama.

Small wheels and a bulky rear all give the Leaf a very mumsy look, but when the car is specified with a contrast roof it does make it look sleeker.

What’s it like inside?

When the Leaf reaches the UK it’ll be styled more

like the Micra, according to Nissan. That means none of the plastic dashes we saw in Japan and more soft-touch materials. While it can’t compete with more design-focused EVs, it does tick the practical box that most families will be looking for. Space is generous for passengers and there is plenty of head room.

What’s the spec like?

Although there are no prices for the standard Leaf in the UK and specifications have yet to be released, Nissan has unveiled a limited edition version that’ll cost £26,490.

Our test car costs 3,990,600 yen, equating to circa £26,800. That gives you fabric seats, Nissan’s touchscreen infotainment system with Apple CarPlay, ProPilot, e-Pedal, air con, heated seats and – only in Japan – a camera rear-view mirror.

What do the press think?

Auto Express says: ‘We will have to wait to drive a UK model before giving a definitive verdict on

the new Leaf’s ride and handling, but the extra performance is very welcome and Nissan’s muchvaunted e-Pedal works brilliantly in practice.’ Car Magazine says: ‘If the UK price and spec is well judged, the Leaf is a good bet for anyone ready to take the leap into a BEV. Its proven technical package, predicted reliability, appealing interior and ease of use make this a tempting proposition.

It’ll be interesting to see if it remains as tempting once the upstart rivals start muscling in.’

What do we think?

Car buyers already convinced that an electric car is for them will likely sit in a Nissan Leaf and find it ticks all the boxes. When considering range, price and equipment, it’s got a great combination.

Everything improves on the previous generation, but it is slightly let down by its looks in a segment that’s becoming more diverse.

Get behind the wheel and it becomes more compelling, but we’ll need to reserve judgment for the UK version.

CarDealerMag.co.uk | 55

Feature.

INSIGHT

Going back to the ’90s rather than into the future Rebecca Chaplin experiences the quiet life and pristine parking meters as she goes in search of dealerships. They must be here somewhere...

T

o me, Japan is a superpower of technology.

Futuristic in design and always thinking outside the box. I share this sentiment with a colleague as we arrive at Haneda Airport, but am suddenly baffled by how I seem to have stepped back in time to the early ’90s.

He tells me my view of Japan has been wrong, pointing out every Japanese person holding a flip phone. Passport control is signposted with laminated paper signs, there are notice boards with fluorescent paper, and patterned carpet lines the floor. It’s almost as if they’d set everything up as seamlessly as possible 20 years ago and there was no need to improve it.

I’m here not only to see the Tokyo Motor Show, though, where I’m expecting some of the most cutting-edge technology – and already there seems to be a disconnect between creating this technology and actually using it – but also to find out exactly what motoring means in everyday life Tokyo, not the Tokyo Drift world we’ve all got in our heads, and what selling cars is like in the city.

I mention the Hollywood image of Tokyo because it’s actually not really like that – by day, at least. While things might differ outside the capital, this city has a split personality, and venturing out at 9am on a Monday compared with 5pm, you’d struggle to believe you were in the same place. I take a walk from my hotel to the Imperial Palace, through the Ginza Corridor.

This is one part of Tokyo that comes alive in the evenings, but right now every parked vehicle is a Suzuki Carry van or similar delivering fresh fish in preparation for sushi orders that evening.

I’m following a parking attendant who is cleaning every single meter, yes, every single one, and they’re sparkling.

What’s almost deafening here is the silence, or at least the absence of chatter. Compare this with London or New York and you’d barely believe it’s a capital city. No-one is talking, one person is 56 | CarDealerMag.co.uk

The famous crossing in Shibuya

Seek and ye shall find dealerships... on the phone and everyone is focused on where they’re going. The only sound around is that of the passing cars.

During the whole day, only two cars honked their horns and there’s not really any traffic. We’re not in Kansas any more, Toto...

What I’m seeing on the road is very limited too, although as spotless as the roads they’re driving on. Parking and taxes for driving in Tokyo

are high, meaning the number of cars driving in the city has dropped drastically.

Again, where I was expecting something more futuristic, instead I’m seeing retro-looking Toyota Century taxis, tiny vans and even tinier cars.

The motoring landscape is square, small and electrified. The Century isn’t something to be scoffed at, either. It was a big unveil for Toyota at the show, although it’s kept the same classic car look, but it’s arguably the equivalent of the London Electric Vehicle Company, which has kept the same look of the original black cab.

Car dealerships appear sparse at first. I’m finding row after row of restaurants but very little in the way of places selling motors.

However, since things are just as tightly packed wherever you venture in Tokyo, taking a closer look is always necessary.

There’s a lot about Tokyo that doesn’t feel alien at all. They drive on the same side of the road as

‘What’s almost deafening here is the silence, or at least the absence of chatter.’

us, the weather is like England in spring and even the signs look similar – at least apart from the Japanese symbols.

There are vast overpasses and towering skyscrapers, though, unlike anything in the UK, and they create a subterranean world beneath where a Volkswagen sign catches my eye.

In stark contrast to those tiny cars on the road, just within the glass doors, sits an Arteon ready to pounce on to the street. Understated as it is, if it wasn’t for the fact I know I’m in Japan, this could be anywhere back home.

That is, apart from its size. Everything has been compacted to fit within this compact city, where space is capitalised on rather than wasted.

I carry on. The language barrier is too much in this case to strike up a conversation about PCPs in Japan, finding that as I continue through the city the dealerships do get bigger. I reach Ropongi, where a Ferrari and Audi dealership straddle

Rebecca regrets not hiring a car... the road. These cascade cars over two floors and dominate the area.

Approaching the Zojo-ji Temple and Tokyo Tower, things get a little weirder and I’m treated to something truly Japanese: a Mitsuoka dealership fronted by a two-storey glass window with a purple Orochi behind it – Japan’s answer to a sportscar, but for a bargain price.

If you haven’t studied these before, think of

any famous car but with a Japanese twist.

Further back in the showroom sits a Morgan – at least, it looks like one but it’s actually a Mitsuoka Roadster.

The sun is going down and I pass a discreet used car dealership specialising in Aston Martins and Range Rovers from what appears to be exclusively 2007… and they’re only available in grey. Weird. I hop in a cab to Shibuya. It’s a tourist must: a place where cars wait for people – it’s the famous crossing. The lanes beyond here aren’t that busy, but that’s probably because everyone is standing taking their photos. It feels a bit like the rest of the city: that cars have taken a back seat.

I’m proved wrong of course. As day turns to night, the streets fill with people but so do parking spaces with cars. I head back to Ginza for a second dinner. Outside the restaurant a Lamborghini and Porsche are parked in the bays and no one bats an eye.

CarDealerMag.co.uk | 57

Feature.

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JEREMY THOMSON INTERVIEW

Here for the long haul and set to seize advantage James Baggott finds the managing director of Mazda UK cool, calm and collected – despite the varying pressures that the brand is facing

W ‘I can’t deny that we’re in a difficult situation, but we’ve been in this situation before.

This isn’t a new phenomenon.’

ith manufacturers and dealers facing increasing pressure on car sales, as economic uncertainty and a squeeze on consumer spending bites, the boss of Mazda UK has admitted that times are incredibly tough right now.

Speaking at the Tokyo Motor Show in a candid interview, Mazda UK managing director Jeremy Thomson said that a trend of falling car sales across the industry, heavy discounting by the premium German car brands, and a glut of pre-registrations hitting the market was making trading very hard indeed.

‘I can’t deny that we’re in a difficult situation,’ admitted Thomson. ‘But we’ve been in this situation before. This isn’t a new phenomenon.’

Mazda’s position as a relatively premium, design-led alternative to the mainstream market, and a price point that pitches its cars just below the German premium brands, is undoubtedly a tough place to be trading at the moment.

With UK car sales falling – down 12.2 per cent in October and 9.3 per cent in the key month of September before that – many manufacturers are struggling to hit the targets they set themselves at the start of this year. And next year looks set to be even tougher.

German manufacturers are battling especially hard, pushing their dealers to pre-register cars to achieve targets, and this is having a knock-on effect on brands such as Mazda.

With cars such as the BMW 4 Series available on lease deals for as little as £250 per month, and similar deals from the likes of Mercedes and Audi, Mazda and its contemporaries have to work even harder to compete.

‘The German premium brands are willing to discount deeply, especially as they have their own private battle for supremacy going on,’ explained Thomson. ‘Underneath that there’s the traditional Ford v Vauxhall scrap, and now VW is in the leader battle. It’s making things hard.’

One Skoda dealer told Car Dealer this month that it had been offered ‘more than a hundred’ Kodiaqs at a discount of nearly 50 per cent, as the

manufacturer looks to shore up its sales figures in the toughest quarter of the year. Although that hasn’t been confirmed by the manufacturer, and it’s unlikely it ever would be, even rumours like that worry Thomson.

‘That kind of story worries me, partly because we’d never compete at those levels,’ he said. ‘The reason we’re not in daily rental is we can’t afford discounts of that magnitude, so we certainly aren’t able to offer it to dealers either.

‘What we did this year was set targets at a very sensible level. We took targets down for the network in May. Our network is running at around 101 per cent of target to date and that’s without significant manufacturer pressure.

‘I put that down to having the right product but not having over-ambitious views of volume. I can do that because we’re operating at near-plant capacity, so the company will cleverly place the volume without pushing individual markets to go beyond the natural demand.’

So despite a difficult sales environment, it would seem Mazda dealers are still generally a happy bunch. Thomson was looking forward to welcoming 25 of them over to Japan the day after our motor show press trip ended.

‘We’ll be showing them the new designs and taking them to the show,’ he said. ‘The Mazda network is very happy. We’re number six in the NFDA survey, with a future they want to invest in, and they are confident in our brand. Dealer profitability has improved year on year over the last two or three years.’

Thomson said he consciously wasn’t looking to increase the number of dealers that represent Mazda either, in part to protect the volume his current partners have. And that’s not without interest from new partners. He explained that he was regularly approached by dealers looking to split their large solus sites that they hold with mainstream brands down into twomanufacturer showrooms.

‘Some of the dealers that represent the mainstream brands are increasingly under pressure and their sales are falling CarDealerMag.co.uk | 59

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HALO HOPES

MD fights case for replacement RX-8 to get the go-ahead MAZDA’S UK boss is making the strongest possible case with company chiefs for a replacement RX-8 to be given the green light. Managing director Jeremy Thomson said he had put forward a ‘robust business case’ with the powers that be for a replacement halo model for the brand.

The RX-Vision concept was once again on display at an exclusive design preview event ahead of the Tokyo Motor Show – a strong hint that it could yet go into production.

Thomson said he had been ‘absolutely fighting’ for it to be made, especially given the RX models’ sales success in the UK. He said: ‘I am as eager as anyone to see it come to life, even though at the moment it’s not a confirmed project. The concept is merely a hint of what we could achieve, but if we could make something as good as that looks for the road then I think customers would celebrate that.’

Thomson added: ‘I have robustly put the case forward for one to be introduced.’ He said the RX-8 was a huge success in 2004 and 2005 – its formative years of sales.

‘We massively oversold that car relative to expectations. It was a phenomenon.

‘Every time we advertised it, it sold not just RX-8s but the whole range of cars around it – it drew attention to Mazda.

‘It was undeniably a sales success. I think it gave us a lot more credibility.’

Thomson said the rotary engine concept could be part-hybrid electric if and when it arrives too, adding that the homogeneous charge compression ignition, or HCCI engine, which Mazda announced recently could also feature. HCCI is combustion that doesn’t need a spark and uses compression alone to ignite the fuel/air mixture.

This is far more efficient and cleaner than standard engines, giving the efficiencies of a diesel unit in a petrol.

‘We have a clear vision that by 2035 all our cars will not be pure petrol or diesel,’ he said. ‘Having said that, I think our version of an HCCI engine is really intriguing, a world first and a ground-breaking move that has all the benefits of diesel in a petrol engine.

‘This couldn’t be more relevant in the world we’re living in at the moment with the regrettable demonisation of diesel.’

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Mazda RX-Vision concept drastically – they’re approaching us as they want to split their showrooms and have us in there too,’ added Thomson.

The Mazda boss said he was confident the brand would achieve the sales targets it laid out at the start of this year. As of October, the maker had registered 35,432 cars, which was 6,545 down on 2016, but that fall wasn’t unexpected.

‘We work on fiscal years, and based on the first fiscal half, there is no reason to think we won’t achieve the full fiscal volume we planned,’ he said. ‘A lot of other franchises share a Mazda site, so we’re very aware of what’s happening out there. Retail is under considerable pressure and there’s a lot of registered product in the marketplace.

‘Fortunately, people still want to go and buy the car of their choice and they’ve got to still enjoy the purchase process. The demographic of the Mazda buyer is in the sweet spot that can still afford to buy cars.’

Thomson admits that his models will ‘never compete on pure value’, especially when competing with the likes of

BMW, which is using its strong residual values and aggressive finance deals to tie buyers in. He said: ‘Luckily, there are still people who are very specific about the brand they want to buy and they don’t compromise, and that favours Mazda.’

Thomson seemed relaxed chatting about the pressures his brand faces and it’s obviously something that doesn’t worry him.

‘Chasing vanity sales is something an MD does if they’re only in position for 18 months,’ he said. ‘I have the luxury of longevity, so I can take the long view on this and make sure we have a model that works for our network and for us in the long term.

‘I know the kind of cars we’re bringing out in the near-to-medium-term future and that’s going to pull paying customers into showrooms and they’ll pay good premiums for them.’ He hopes a good Brexit deal – especially one where Britain can forge its own trade agreements with the likes of Japan, the country where all of the firm’s car are made and exported

Mazda UK boss Jeremy Thomson

VISION COUPE Mazda Vision Coupe design concept

‘With this new concept we are breathing new life into the car.’

Mazda chief designer Ikuo Maeda

SMMT CHIEF:

How Brexit could play into Mazda’s hands SMMT chief executive Mike Hawes was prowling the halls of the Tokyo Motor Show, proudly promoting the fact that Britain was still open for business.

Car Dealer caught up with him next to the Mazda stand, where he said he believed Brexit could play into the hands of Japanese car firms.

‘Companies like Mazda that import all of

from – could play into his hands. Currently, Mazda is subject to a 10 per cent tariff on imports, but that’s something that could change if a new deal is agreed.

‘Undeniably, it’s a turbulent market and will continue to be for some time, but I think, certainly through this Brexit phase and into the interim period thereafter, that Mazda could be at an advantage as and when free trade agreements with Japan flourish.

‘We are virtually the only manufacturer that currently pays a tariff on everything we bring into the UK, so our business model is scaled to accommodate that. It would be lovely to see what Mazda is capable of on a global platform if it becomes a level playing field for us.’

A decent Brexit deal, then, could be the key

their products from Japan have been subject to a 10 per cent tariff, so the prospect of a new trade agreement means that could be wiped,’ he explained. ‘If that 10 per cent is removed, then importers like Mazda would clearly have an advantage. Having being disadvantaged compared to European manufacturers, there’s a prize there for them on the horizon.’

to Thomson breaking his brand’s current ‘glass ceiling’ of 50,000 car sales a year as a two per cent market player. So, in these turbulent times, what would his message to dealers be? ‘Stick with it,’ he said. ‘Make sure you have a good portfolio of brands if you’re multi-franchise and stick with us if you’re solo – those are good bets.

‘When I look forward to the next five to 10 years, I think Mazda’s got a tremendous amount to offer. Let’s see where we go with the Japanese free trade agreement and see if the UK blazes its own trail post-2019. That could transform our fortunes as a brand and remove our glass ceiling.

‘I think our brand is more finely honed than it’s ever been before; our dealers are happier than they’ve been before. Yes, it’s tough right now, but the future looks very bright indeed.’

Mazda reveals the look for its next generation of cars MAZDA showcased a new design at the Tokyo Motor Show – a look that’ll soon be rolled out across all its models.

The evolution of the brand’s famous ‘Kodo design’, which has defined the last generation of Mazda cars, now features cleaner, more elegant lines.

The Japanese firm showcased the fresh face for the brand with the Vision Coupe concept at a special preview design event at a dealership in the centre of the city. Speaking there, Mazda UK boss Jeremy Thomson said that if the last Kodo design was anything to go by, we’d see this new look rolled out across the range ‘very soon’.

He said: ‘This will progressively flow through our designs. It’s clear the global design teams have been working on this for some time, so I would expect the cars that will launch next year onwards will have a strong sense of this.’

Chief designer Ikuo Maeda unveiled the Vision Coupe design concept – a four-door model – at the exclusive event and explained that the firm’s designers had gone back to basics with the look.

He said: ‘With this new concept we are breathing new life into the car. Not many cars these days can be described as elegant, they’re so complicated. We see a value in taking on this artistic challenge. Kodo design is an ongoing tradition, but I have thought long and hard about how to move it on.

Mazda will be about elegance, it’s about the art of light and manipulating it. Our cars will have a simple, aesthetic appeal, a sense of motion in their form and a sense of speed.’

The Vision Coupe is certainly elegant.

A gaping grille, sweeping lines across the bonnet and curved, tight haunches make it really stand out. And you can see how it could be translated to update existing models such as the Mazda 6, Mazda 3 and MX-5. Thomson said that although the Vision Coupe was clearly a concept, there could still be space in the range for such a car.

‘There’s space for four-door coupes, both in the C-segment and the C/D-segment, the small and large family cars,’ he said. ‘And it’s not just about the UK, of course. Being out here in Tokyo, we take a global look at it and there are some countries where it’s crucial.

North America is a key one.’

Mazda refused to speculate further on it entering production.

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BEAT 360

Car sales Gangnam style Kia has launched a new dealership concept under its domestic HQ in Seoul. James Baggott travelled to South Korea to take a look around

I

n the middle of the bustling Gangnam shopping district of Seoul, a huge, red-wavecovered building looks as though it has been teleported from outer space and deposited in place in the street. Next to designer clothes shops and across the road from Givenchy and Giorgio Armani’s flagship South Korean stores, Kia’s new ‘Beat 360’ showroom looks perfectly at home.

After a multi-million-pound makeover of the tired old showroom that preceded it, Kia is hoping this new concept will be the new face of retailing for the brand in similar set-ups across the world. Think of it not as a car showroom, but rather a high-end city centre coffee shop where passers-by can drop in, relax and escape the busy streets. A Zen garden with birch trees, a marble waterfall and relaxing chairs make a welcome retreat from the heaving pavements outside.

There’s a mini golf course for children to play on, while the coffee shop serves exclusive teas and coffees from around the world.

‘It is modelled on the same idea as the Apple Store concept where customers can come in and interact with our brand – there’s no high-pressure sales here,’ explained the Kia guide who showed us around the impressive site.

‘Beat 360 stands for our beating heart, while 360 splits down into the three different areas we have here – coffee, garden and salon – six senses, while the zero means zero boundaries.’

OK, so that explanation may sound like it was conceived during a particularly boozy marketing managers’ power lunch, but the execution of the Beat 360 space is fantastic. Walk inside and the wave pattern design from the outside cladding – representing ‘airflow over vehicles’ – is continued as it wraps around the smart coffee shop. There are no freebies here, either – customers are expected to pay for their iced green jasmine teas and Ethiopian ground espressos.

It’s certainly a relaxing space, with just a handful of cars carefully positioned like pieces of art. A Stonic is the first car you see when you walk inside; a K5 sits next to the coffee shop.

There’s a flow to the Beat 360 store, with a running track-style guide to ease you around.

The salon area is a business centre, with smart seats and tables, while on the other side of the showroom is theatre-style seating, where a guide 62 | CarDealerMag.co.uk

Give us a wave...

Kia’s new-look showroom in Seoul

Cars are carefully positioned in the showroom, which offers customers a VR experience

Huge conglomerate THE sheer scale of the Hyundai Group – which owns Kia – is staggering. Not only does it design and produce the cars that we see on our roads, it also manufactures the steel from which they’re made, owns the parts companies that make the components, owns the ships that transport them around the world and the logistics companies that arrange it. Think of it more as the economy of a small country rather than that of a single company. It’s no wonder it’s about to start work on the largest building in Seoul – a 100-storey office block to house its head office. The land itself cost several billion dollars alone.

can give those who want it an immersive talk about the centre.

‘It opened three months ago and is the first in the world,’ explained our guide.

‘We have 30 staff here, of which 13 are salesmen, but they are not targeted to sell – they get paid whether they sell or not.’

Currently, the showroom sells around 15 cars a month – hardly enough to justify the huge investment, but Kia insists the site isn’t about that. ‘It’s more about immersing people in the brand,’ said a spokesman.

I expect to meet one of the most relaxed salesmen in the world, then, when Chang Jin-kim sits down with an interpreter to enjoy a cup of the fancy tea and explain what car sales look like here.

Chang worked at the showroom that the Beat 360 store replaced, so he knows all too well how the two compare.

‘It’s a different atmosphere here,’ he explains.

‘Previously, people came in with a strong intention to buy a car; now they casually come in and drink coffee – it’s not as sales focused any more. We hope that although it’s not about sales now, it will have an impact on sales for Kia as the brand expands with new models and technology – Beat 360 could be where customers get to experience those first.’

And there’s definitely a lot of new technology on the way.

Kia is committed to bringing fully autonomous cars to the roads by 2030, and by 2020 it promises to have ‘level 4 autonomy’, which would allow drivers to take their ‘eyes off’ the road.

At its sprawling Namyang R&D centre, just a few days before visiting the Beat 360 store, we heard from Jaeyong Um – one of the men leading Kia’s technology transformation.

He explained that improving driver safety

was one of the main reasons behind Kia’s push for autonomy.

‘Kia is moving from passive safety systems, like seatbelts and airbags, to active safety systems that can prevent accidents in advance,’ he said.

‘Blind spot monitors, highway driving assistance and forward collision mitigation will all help reduce accidents, 94 per cent of which are due to driver distraction.’

As the price of components needed for these sorts of systems – radar, high-definition cameras and superior computing power – come down, they’ll become far more common.

Jaeyong showed off Kia models that can already autonomously emergency-stop, move out of the way of emergency vehicles, cope with roadworks on motorways and even ‘talk’ to other cars to avoid upcoming patches of ice and other debris in the road.

‘Connected cars of the future will be able to share information,’ he said.

‘This will mean they will flow better on motorways, reducing congestion. And they will share information about accidents and changing weather conditions.’

He explained that the car industry needed to work together on a common agreed standard for sharing data, though, otherwise manufacturers would forge their own paths and connecting cars from different brands would become far harder.

‘Younger people do not want to drive any more – they want cars to do that for them,’ added Jaeyong. ‘The biggest things holding this technology back is legislation, as governments decide what they allow, and then there’s the issue of who is to blame in an accident – is it the driver or the manufacturer?’

This becomes especially difficult when cars are forced to make their own decisions.

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The Beat 360 store has a flow to it and includes an area with theatre-style seating where immersive talks are given

crossing and those people waiting at the side of the road don’t want to cross? Will the car be able to choose to drive through it?

Jaeyong says cars will have to use artificial intelligence to learn in these situations and then share that data with other cars on the road.

You can begin to see why it’s so tough to implement.

‘We need hyper-connected, intelligent cars,’ he said. ‘But with technology companies like Google and others also working on these solutions, it’s only a matter of time before it arrives.’

And when it does, Kia hopes that stores such as Beat 360 will be able to showcase it.

‘One of the biggest problems with autonomous cars is drivers feel anxious in them. They don’t know whether the systems are working or not, and they don’t understand them,’ said Jaeyong.

It’ll be down to stores such as this one, and their virtual reality experiences, to help drivers get used to the changes.

Back in Gangnam, I take some time to try out a VR experience of a Stinger test drive and use augmented reality glasses to tell me more about the cars in the showroom as I wander around.

Kia admits that the concept has been 64 | CarDealerMag.co.uk

earmarked to be rolled out globally if this Gangnam project works. The spokesman was tight-lipped as to what ‘works’ means, but did say New York and London could be ideal cities for the concept to appear in next.

The 360 store is a clever concept and feels incredibly premium – the sort of thing you’d expect from a supercar manufacturer, not Kia. However, it’s one that will need considerable backing from the manufacturer if it expects a dealer group to run one for it in the UK. Let’s face it, 15 car sales a month is hardly going to cover the whopping investment a store such as this would need.

However, a spokeswoman for Kia UK said it still hadn’t ruled out the idea of bringing something similar to this country.

‘It’s an interesting idea and would take some considerable investment,’ she said. ‘We’ll have to wait and see.’

That’s not a no then… and as more manufacturers take retail space in less traditional spaces, such as shopping centres, elaborate showroom concepts such as this one could be what’s needed to interact with the car buyers of the future. [CD]

Kia facts • The Brisa was Kia’s first passenger car, manufactured in 1974 • In 1986, the Kia Pride became the brand’s first mass-produced global car • After a financial crisis in 1998, Hyundai stepped in to buy Kia and created the Hyundai Motor Group • The group is now the fifth biggest car manufacturer in the world – making 3.5m cars a year • Global sales have grown by 102 per cent since 2008 – last year topping 3.02m cars • The Kia brand is the 69th most valuable in the world, ahead of MasterCard, Land Rover and FedEx • 38 new models or refreshments are planned before 2021 – 14 of which will be plug-in hybrid, electric or fuel cell • It has 34 factories in 10 countries and 50,000 staff globally

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CarDealerMag.co.uk | 65

Feature.

Rebecca Chaplin and Jon Reay report on the ups and downs – quite literally – of this year’s madcap rally that saw our fundraising teams take in some of Europe’s most breathtaking routes

T Becca

his year on Bangers4Ben the Car Dealer team planned an epic Alpine adventure, taking in France, Germany, Switzerland and northern Italy (or slightly more in some cases). As is always the case, nothing really goes to plan on Bangers4Ben – or the plan goes completely out of the window – as we desperately try to rein in the ambitions of almost 50 teams of car dealers. ‘Ambitious’ would be a really good way of summarising the cars this year. While in some cases mobility was thrown out of the window in pursuit of style, others had never even driven their cars before setting off from Dover.

But regardless, all of the teams made it on to the ferry this year and set out on a four-day pilgrimage to some of the greatest roads in Europe. And if any of them had looked at the route carefully, they’d have realised that our choice – a first-generation Mazda MX-5 – was the only choice.

The roads ahead are windy, very windy, not to mention steep. While they might be perfectly surfaced and smooth, that doesn’t mean they’re easy to drive by any stretch.

With our firefighter gear on, roof down and music from 1999 blaring, it was time to see if our brakes and rear wheels could survive the Alpine slopes. There wasn’t really any logic behind the way we decorated the Mazda, except that it was red and we made a list of red things, of which a fire engine was one.

I say ‘decorated’; Jon would probably say ‘cosmetically refurbished’ after he toiled for hours, aimlessly trying to improve the paintwork.

We hadn’t had a lot of choice in the car we took this year, but we weren’t complaining. As soon as we saw the route we knew it needed to be a convertible and an MX-5 was high on our list. In this case we got a hand-me-down from the Baggott collection, after it had sat in our car park at work for several months looking more questionable by the day. With an MOT until next year it looked positive, but the rust under the rear 66 | CarDealerMag.co.uk

The Bangers4Ben vehicles brighten the tedious queues at Dover as we wait for the ferry wheel arch and suspect knocking noises were causing some concern…

T Jon

o say James kindly gifted us the Mazda… would be a lie, basically. We stole it off him – but for the greater good, you understand. Now, obviously, having invested a great deal in its restoration so far – £15 of V-Power and a new air freshener – he wasn’t keen to let go of it, but after some arm-twisting we were on our way.

And so I set about working out how our two-seater fire engine was going to look. Blue flashing lights embedded in each panel were a given (let’s gloss over the questionable legality), as was a siren and some distinctly shouty reflective graphics. Many hours of drilling, crimping and several trips to Halfords later, the MX-Fire (see what we did there?) was starting to look like an actual emergency services vehicle, albeit one conceived under austere public service cuts.

Important design elements sorted – and basic maintenance checks ignored – it was soon time to squish in our belongings and head for Dover, hoping that a car that hadn’t seen a motorway

in over a year would even make it there. Being Japanese (and thus impenetrably reliable) though, the Mazda arrived safe and sound – and with just enough daylight in the sky for us to apply our final forgotten vinyls.

W

Becca

hen Jon says basic safety checks were ignored, he means I checked the tyres moments before we needed to leave to find they were severely under-pressurised and a chunk of rubber was missing in the sidewall of one of the rears.

This threw me into a panic every time we set off, but trying to fix it didn’t really occur to us.

You usually miss this side of our features, but when Jon and I are paired up we have a magical way of making a meal out of any journey – big or small. In this case, our journey to Dover (a couple of hundred miles from Gosport) had already taken seven hours and incurred several stops at retail parks along the way. This didn’t bode well for the many miles that lay ahead.

Sure enough, once safely on the other side of the Channel we had the first casualty – one of the Mazda’s characteristic pop-up lights dropped

BANGERS4BEN ON A

SWISS ROLL Car Dealer’s Mazda MX-Fire waits next to the Ben’an’AA (geddit?) entry in Dover, along with Car Dealer’s Italian Job Mini and the AA’s tank as I was frantically flashing them at the other teams. Nevertheless, we crept past French border control unnoticed to the blaring sound of Michael Caine from Car Dealer Andy’s Italian Job Mini informing us that in this country they drive on the wrong side of the road.

F

Still, at least we were flanked by an equally moist Joel and Ian as we made up the miles towards Strasbourg, the only thing dry on arrival being the hotel’s monumentally rubbish bar. The Blackshaws boys found an enterprising solution to the problem at least: successfully gatecrashing a local couple’s wedding reception a floor below us, even getting a snap with the bride…

Jon

iguring that eventually the sun would set, I set about trying to fix our lopsided lights at our first petrol stop of the day.

Like most things I end up fixing, it turns out that it was all my fault in the first place – the speaker cable I’d wired the siren up with had somehow wrapped itself around the pop-up mechanism. Oops. An easy fix for the lights at least, but it did mean our £10.99 siren had to bite the dust – not that anyone could hear it anyway.

My wiring faux pas sorted, we were soon flying along again, enjoying the... uh... sights of northern France. Stupidly, we’d agreed with our fellow convertible comrades (namely Lawgistics, Blackshaws and Sportif) that our trip would be roof-down the entire way, come rain or shine.

Sitting in the warm ferry, that seemed like a great idea, but in rainy Picardy? Not so appealing.

O

Becca

Listen very carefully, I shall say zis only once...

Kelly Neal from Ben keeps everyone in order

n day two I decided that I was going to do all of the driving. As I mentioned before, the tyres were making me nervous, every weird suspension noise freaked me out and I was trying not to think about how much of the critical framework the rust had eaten away at.

After a couple of hours of driving, though, I had changed my mind and was completely in love with the MX-Fire.

The start of the day wasn’t particularly thrilling as we powered through drizzle once again and headed for the Swiss border. By some twist of fate, we’d ended up leading a convoy of Geoff Cox in the terrifying Mad Max car, Lawgistics and the Aston Barclay Jurassic CarDealerMag.co.uk | 67

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Park X-Trails. We pulled over just past border control to check everyone had a vignette, allowing them to use the Swiss motorways, and managed to collect some more teams: Blackshaws in the Toy Story MX-5, Aston Scott’s ‘Aston Powers’ MX5, the Codeweavers Star Wars Volvo, one of the TrustFord teams and a grass-covered Bora…

They put their faith in us and began following towards the Furka Pass.

K Jon

nowing there was a chance the pass would be, er, impassable, we’d sent guinea pigs Mal and Amanda in the Car Dealer Support Kia off to check the route before we got there. An hour away from the pass, the bad news popped up on WhatsApp: ‘Furka Pass is closed’. So we ignored that and headed up there anyway. Though currently covered in roadworks and traffic lights, the route heading up to the Furka is beautiful enough on its own – which is lucky really, given the events that followed...

When we’d finally snaked our way to the top, and at the start of the Furka itself, yet more bad news came down the wire. A group ahead of us, led by John Miskin in the Sportif BMW Z3, had gone as far as they could down the apparently closed route and were having to turn around on the spot in a rather precarious manner. The views were worth it, they reckoned, but with 10 bangers (most with questionable handbrakes) behind us, we made the decision to call it off – doing a U-turn at a conveniently placed roundabout and heading straight back down again, much to the confusion of everyone behind us.

This is where things got a bit awkward.

Halfway down the exact road we’d just crawled up, the sat nav suddenly became insistent that we had to turn around – again. Google Maps confirmed the problem: the motorway we were hoping to join at the very bottom of our route was closed and the only option was – you guessed it – to head all the way to the top again. As you can imagine, this went down very well.

I

Becca t was all going too well clearly, and the look of several confused faces still queuing for the second set of traffic lights wasn’t a pleasant sight as we doubled-back up the mountain.

We drove away as quickly as Swiss speed limits would allow and hoped no one would remember this… Things were looking up as we headed higher into the mountains though, because now there was snow!

However, there was also a really thick fog coming in with near-zero visibility… although we could see a confused Meriva in front of us.

This poor driver was clearly having issues as they drove at five miles per hour around the mountain roads. With no passing opportunities,

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Modified MX-5s from Blackshaws and Aston Scott lead the pack (well, follow us) towards Furka

Taking a break after the Gotthard Pass

Balancing rocks at San Bernardino Pass

I could sense the frustration growing from the bangers behind us, although Jon wasn’t holding back with the profanities either.

Miraculously, as it does in Switzerland, the fog suddenly cleared and I wasn’t waiting behind this guy any more. Even the clear skies didn’t speed him up, though, and we were now swooping down the Gotthard Pass, with several teams remaining trapped behind this slowcoach. The curves of this pass almost made up for missing out on Furka, but some of the teams’ brakes definitely wouldn’t agree, as a few fires needed to be put out at the bottom – although our fire engine can take no credit!

Flames now at bay, we set our sights on the next destination of the day – the San Bernardino Pass. All of a sudden, the weather had transformed from wet and dull to 24 degrees and sunshine – something that full firefighters’ gear isn’t designed for…

Chaplin and I did some sunbathing plus coffee drinking and reflected on the journey so far.

Fully caffeined up, we set our sights for Alpine destination number two: the San Bernardino Pass.

The vista that greeted us all at the top was as spectacular as it was surreal: a semi-frozen lake framed by towering, craggy hills. Even stranger, the landscape was littered with hundreds, if not thousands, of balancing rock formations – obviously man-made, but still a bit unnerving.

With Davos now in our sat navs, it was the route on the way back down that proved the real experience, though: a stretch of weaving tarmac draped down the hillside, with enough hairpins to keep Chaplin’s arms twirling away until sunset.

Quickly losing some of the more lumbering vehicles of the group – c’est la vie – we got our foot down towards Davos, hoping that there’d be a warmer welcome than at last night’s hotel…

A Jon

pit stop at a particularly Brutalist Swiss service station highlighted the mad temperature change even further.

While the teams grabbed a bite to eat,

A

Becca

fter San Bernardino I was expecting to be back on the motorway, but the Bangers4Ben gods (Andy and Kelly) had planned in some more incredible roads to finish the day. Those who’ve

Winners

Each year, Car Dealer awards three prizes for the best car, best costumes and best tweet from the four-day trip. Every year, the teams get more competitive and this time round certainly wasn’t a disappointment...

Best Car 2017 The AA Tank There was plenty to choose from in this category, and honourable mentions must go to the Promotive James Bond Lotus, Geoff Cox Derby’s Mad Max and the Plan Insurance Alpine Chalet. However, there can only be one winner and this year it was the AA for its Volvo transformed into a tank.

Best Fancy Dress 2017 GardX Gemma Heathcote and Amanda Massey from GardX were awarded the prize for their daily transformations with an Alpine theme. On day one they arrived in bright ski wear, day two saw them as milkmaids, by day three they were most a-moo-sing as cows, and on the fourth they donned lederhosen!

Best Tweet 2017 Jon can take proper photos really, promise... been on Bangers before will know that the accommodation is… um…affordable. This is for charity after all! So imagine our surprise when we arrived at a really nice hotel with balconies, complimentary water and other mildly fancy things that we weren’t expecting.

Things hadn’t gone so well for some, though.

Our friends from Plan Insurance in the Berlingo Alpine chalet had found themselves in trouble that morning. It turns out that when your fan breaks and you cover your bonnet in fur, things get a little hot...

This wasn’t the worst of their trouble,, though, but the AA got them going and kindly put them on a car train. Problem was, it wasn’t going to Davos, it was going back towards Germany.

But we were in the right place, and on day three we were heading for the Stelvio Pass.

Before we got there, though, we had the Umbrail Pass to go, but little did we know quite what we were in for that morning. After our very – sort of – successful leading-of-the-pack, we’d been nominated again to guide a convoy through the mountains. We left Davos and, only miles down the road, found ourselves in a snow landscape so white, vast and alien we could have

GardX While we don’t normally award the same team twice, GardX’s ‘Carpool Karaoke’ couldn’t be left out! The pair recorded songs with various ‘celebrities’ over the trip, producing a fantastic video. It demonstrates just how much effort went into it, as the team also compiled their bloopers from the trip. Enjoy! (And eat your heart out, James Corden!) https://twitter.com/gard_x/ status/917348976860520448

been on the moon. Possibly. Some snow selfies later, we continued through valleys that became greener and greener. Unfortunately, Jon was having slightly too much fun and kept losing the people we were supposed to be directing, so there was also a lot of waiting too.

T Jon

o be fair, I was only racing ahead so I could stop to snap some pretty pictures of our convoy (slowly) ascending the Swiss hills behind us. It’s not easy this photography malarkey, you know.

Anyway, we could’ve been having worse days.

It transpired overnight that one of our convoy, the Geoff Cox crew in the Mad Max Freelander, had had a run-in with the Swiss police on the way to the hotel the day before.

They’d even gone so far as to haul the Land Rover and its occupants into an inspection area, jack it up on a four-post ramp (with Sean and Craig still inside) and prod and examine every mechanical element they could find.

The result? Waving goodbye to some of the Freelander’s more exuberant exterior add-ons, and receiving an eyewatering fine of 600 Swiss francs. Only later that evening would they discover that, contrary to what a calculatorCarDealerMag.co.uk | 69

Feature. wielding policewoman had told them, this didn’t translate to £50 but £500 instead…

Putting this behind us, and hoping nobody else would suffer the same fate at a checkpoint today, we soldiered on in search of the Umbrail and Stelvio Passes. Were it not for a handy sign at the top, it’d be difficult to guess where one finishes and the other begins. Either way, though, the route made for some spectacular scenery.

As we stopped in the village of Lombardy for a quick peek at the view, it became clear that all was not right with Lawgistics’ trusty StreetKa. Like a puppy that hasn’t been house-trained yet, it soon treated us to a trickle of yellowy fluid making a bid for freedom across the tarmac.

Panic quickly set in, but thankfully it wasn’t a burst header tank or radiator – just a particularly loose worm-drive hose clip that’d had enough of holding back a scaldingly hot coolant hose.

While this was being fixed by a handy Ben’an’AA representative and the IGA in the Flatpack Flyer, Chaplin was busy getting into the true spirit of Bangers4Ben 2017: being robbed blind by someone Swiss. With £60 fake-fur market-stall hat in hand (or on head), we were on our way to the next pass. Or so we thought…

I

Becca hold the this-would-cost-€450-in-St-Moritz hat completely responsible for the next two hours of our journey. They were beautiful, sunny hours spent driving through the Italian countryside, but they were also hours spent behind caravans and tractors heading the wrong way into Italy.

You see, the day before, we’d used the system of just putting whatever destination was next in the road book into our sat nav and it worked perfectly. However, it wasn’t quite so straightforward now, as we were covering three countries and some of them use the same names for different places… hence the diversion.

We turned around but the route was looking particularly tight for time at this point. We were supposed to be in France for the night’s awards at 7pm and it was an eight-hour journey according to Google Maps but it was now gone midday.

So, much to everyone’s disappointment, we had to miss out the Klausen Pass. We made a group decision to get back as soon as possible, as driving a winding pass in the dark probably wasn’t going to be fun.

It turned out, though, that trying to get back into Switzerland at that time of day was the worst idea in the world because everyone else was

Rebecca fakes a smile about her fake-fur hat 70 | CarDealerMag.co.uk

Everyone ignores Jon’s spectacular failure to perform a donut and enjoys the snow vista instead

It all seemed to be going so well...

...Then disaster struck for Lawgistics’ StreetKa!

Stopping to sample traditional French cuisine

All aboard for the voyage home

trying to do exactly the same thing. After some confusion in a Swiss tunnel – and with our earlier deviation – our convoy lost faith.

Jon’s sat nav had done us well until this point thanks to its traffic data, but as we turned down a rural road with roadworks, iVendi pulled up, shouting at the others that we were going the wrong way. The Manheim Jag stayed loyal – mainly because they were already past the traffic lights at this point – but everyone else went their own way. It now became a full-throttle race (again, within Swiss speed limits…) to the hotel to prove whose route was best.

Fortunately for us, the iVendi convoy was now stuck in traffic. A shame for them, but we were pretty smug at the time. It was then a blast across Germany on the autobahn, where we pushed the MX-Fire to more than 100mph – we weren’t going to be last to the hotel! With almost every team taking a different route, we arrived seconds after Mad Max and still ahead of the others!

equally unfussed about rushing home, but others made headway to beat M25 traffic on the return.

The Codeweavers and Blackshaws teams took advantage of the spare time and visited Reims to get some photographs by the famous pits.

However, there were some questionable decisions about actually trying to complete a Le Mans start across what is still a public road!

We’d thought we would do the same, but in the usual fashion we ended up stopping at what seemed like every services for fuel or edible food. After some TripAdvisor research, I found us some traditional French food to enjoy – an American diner.

As we were eating our food, we realised we were now going to miss our ferry, which didn’t matter all that much, but it was reasonably annoying. After some serious steak and a giant milkshake, we put pedal to the metal and by some miracle still made it on to the ferry.

Here we shared stories and reminisced about what had once again been a fantastic Bangers and, of course, began discussing cars for next year – which will be the 10th-anniversary event... [CD]

D Jon

ay four of Bangers4Ben should have been a sedate one. It was less than six hours from our hotel to Calais and the crossing wasn’t until 5.30pm – easy!

We’d paired up with Lawgistics, who were

See more Bangers4Ben pictures at bit.ly/b4b17pics

Auction

T

his year’s Bangers4Ben rally has raised a whopping £59,982 for the automotive industry charity.

At BCA Blackbushe, all of the cars that arrived drove through the hall with no assistance necessary! The cars alone raised £26,752, both on the day and in private sales.

The AA’s tank, which won the title of Car of the Year 2017 at this year’s event, went on eBay after causing a stir on Twitter and sold for £2,700, beating any other from the event!

At the auction, though, Black Horse’s Mercedes-Benz E30 CDI raised the most, selling for an incredible £2,400.

The teams have also been hard at work fundraising, and already this figure has reached £29,430.

BCA was also kind enough to donate the £3,800 buyers’ fees from the sale.

All of the money raised from the Bangers4Ben rally will go to the charity for its support – physical, mental, social or financial – of those who work or have worked in the motor trade.

Bet BCA never thought it would have a chalet rolling through its lanes (top) – meanwhile, others wait their turn (above)

Big thank-yous

Company

Make & Model

Black Horse

Mercedes-Benz E30 CDI Saloon

Plan Insurance

Citroen Berlingo

Geoff Cox

Land Rover Freelander

GardX

BMW 3 Series Touring

Your Best Car

Audi TT

£750

£1,300

£550

Your Best Car

Audi A4 Convertible

£750

£1,200

£450

TrustFord

Ford Focus 1.6 Ghia 5dr Auto

£0

£300

£300

Highland Audi

Honda CRV

£600

£900

£300

Blackball Media

Mini Cooper

£450

£725

£275

TrustFord

Ford Ka 1.3 Style Climate

£100

£325

£225

Fox Garage

Ford Fiesta

£0

£150

£150

Lookers

Nissan Almera Tino

£50

£150

£100

Cox Automotive

Jaguar S-Type

£375

£450

£75

CLC Car Sales

Citroen Xsara Picasso

£150

£200

£50

AA

Rover 600

£103

£150

£47

Rutland Partners

VW Golf V6 4 Motion

£680

£700

£20

TrustFord

Ford Fiesta 1.2 LX 5dr

£300

£300

£0

Promotive

Toyota Celica

£424

£400

-£24

Templar Cars Ltd

Volkwagen Bora

£250

£220

-£30

Aston Barclay

Nissan X-Trail

£750

£700

-£50

Motorcheck

Peugeot 307

£350

£300

-£50

Samson Motors

Toyota Celica

£260

£200

-£60

Blackball Media

Mazda MX5

£500

£400

-£100

Vanarama

VW Beetle

£500

£325

-£175

TrustFord

Ford Focus 1.8 Zetec Climate

£700

£525

-£175

TrustFord

Ford Fiesta 1.4 Zetec

£350

£150

-£200

TrustFord

Ford Fiesta

£500

£250

-£250

Aston Scott

Mazda MX5

£750

£500

-£250

Arthur J Gallagher

VW Beetle

£700

£400

-£300

RMIF

Volvo C70 Convertible

£495

£175

-£320

Codeweavers

Volvo C70

£750

£425

-£325

Lawgistics

Ford Street KA

£649

£300

-£349

Blackshaws

Mazda MX5

£750

£400

-£350

Auto Trader

Saab 9-3 Covertible

£695

£175

-£520

Tradewise

Saab 9-3 Turbo

£750

£150

-£600

Hearst

Seat Leon

£750

£125

-£625

AA

Volvo T5

£400

£2,700*

£2,300

Aston Barclay

Nissan X-Trail

£750

£1,200*

£450

Barley Green Garage

Citroen C5

Unknown

£407*

Unknown

Carnexions

VW Bora

£400

£950*

£550

Feasa

Mini Cooper

£710

£900*

£190

iVendi

MG ZS 1.8

£500

£200*

-£300

MHG Motor Company

Volvo 850 2.0 Estate

Unknown

£1,000*

Unknown

Sportif Group

BMW Z3

£700

£800*

£100

A30 Cars

Honda Civic

Unknown

£200*

Unknown

Total

£26,752

Total fundraising to date (inc £3,800 fees)

£33,230

Grand total raised

£59,982

* Sold privately

Bought for

Sold for

Profit

£0

£2,400

£2,400

£500

£1,500

£1,000

£0

£925

£925

£0

£600

£600

To the AA for its reassuring presence and assistance throughout the rally.

To BCA for hosting the post-rally auction, helping to ensure that we reached a record sum.

To our friends at Ben for their support during the organisation of the whole madcap event!

CarDealerMag.co.uk | 71

DRIVEN BY RESULTS EXTERIOR , INTERIOR & GLASS Put the shine back into your profits and discover how your dealership can benefit from increased penetration rates when you switch to LifeShine.

With a lifetime guarantee, exceptional durability and superior protection, your customers will be as delighted as you are.

For a free demonstration, call 01462 677 766 or email lifeshine@autoglym.com

Carbon Shield Technology 72 | CarDealerMag.co.uk

TM

lifeshine.com

Focus on.

Autoglym

See how LifeShine can benefit your business and make your profits gleam AUTOGLYM

W

E: lifeshine@autoglym.com

ith the level playing field that the internet brings – and the financeled incentives that prop up most manufacturer sales charts each month – it’s becoming ever harder to extract good chassis profit these days. The best ‘add-on sales’ offer a dual benefit of course: sound profit for the dealer, with a tangible and measurable benefit for the customer. After all, this is what keeps them telling their friends and coming back for more. All of this helps explain why LifeShine from Autoglym, a class-leading vehicle protection system (VPS), has become a mainstay of switchedon dealers over the past few years.

It provides dealers with an invaluable extra ‘string to their bow’ and a superb opportunity to boost the value of their business, while customers receive an industry-leading product proven to provide comprehensive paintwork, glass and interior protection. Extensive independent research has confirmed Autoglym’s findings, namely that dealers can achieve, on average, increased penetration rates of eight percentage points when they switch to LifeShine, with some even enjoying boosts in penetration of up to 80 per cent.

The wider Autoglym brand helps of course – not only recognised as Britain’s favourite brand, but recognised and trusted by consumers across the globe, no doubt aided by the various royal warrants displayed prominently on its products for many years. It’s a powerful facet of the business and one that shouldn’t be underestimated.

Allied to that is an extensive motorsport programme that saw Autoglym support the winning Subaru BMR BTCC team this year. Brand awareness is never an issue.

LifeShine is so effective thanks to the

T: 01462 677766

Carbon Shield Technology™ that underpins it. This sees liquid carbon molecules fused to the vehicle’s paintwork, forming a long-lasting barrier against a wide variety of common contaminants, including tar, salt, mud and the weather. Independent testing once again verifies LifeShine’s effectiveness in this respect, with a recent controlled durability test confirming the technology’s ability to outlast competitor systems by a minimum of tenfold.

Aimed squarely at a busy main dealer valeting bay, LifeShine has been designed to be applied in as little time as possible. The whole kit is designed so that valeters and detailing technicians can work through a large number of cars in a single day. Application takes just half an hour, with a little while longer for the curing

process, and the vast majority of professionals surveyed described said process as ‘very easy’.

The LifeShine proposition is something of an open goal for fiscally astute new and used car buyers, especially as it’s backed up by a slick app that clearly sets out the advantages and features of the VPS. Selling it is easy too. Who doesn’t want their expensive new purchase to look as good – or last as long – as possible?

LifeShine also caters for automotive glazing and interiors. Its interior protectant has incredible hydrophobic properties, meaning it can repel and prevent staining by spills from water, coffee, soft drinks, milk or any similar non-corrosive liquids.

Customers also receive an array of suitable Autoglym products called the LifeShine Aftercare Collection, all designed to preserve the protective qualities of Carbon Shield Technology.

Reassuringly, LifeShine is endorsed by some of the largest and most exclusive OEM concerns around, including Audi, VW, Seat, Skoda, MG Motor UK, Mazda, Kia, Vauxhall, Honda and Jaguar Land Rover, and is underpinned by significant levels of investment in consumer advertising.

The product is also underpinned by a lifetime guarantee, wholly supported by Autoglym.

CarDealerMag.co.uk | 73

Stock sourcing with low buyer fees Where do I sign up?

.co.uk Thousands of trade-priced cars available direct from private sellers Free to view stock - Opportunities daily - Online platform 74 | CarDealerMag.co.uk

Focus on.

Tootle

Stock opportunities from industry challenger TOOTLE

W: www.tootle.co.uk

T: 020 3327 2240

L

aunched in 2016 and challenging the industry status quo, Tootle launched a platform allowing dealers to make private sellers an offer for their car. With strong benefits on both sides – dealers getting regular new stock opportunities and sellers being able to transact quickly – the company grew from strength to strength, securing partnerships with some of the UK’s biggest automotive brands.

With continued growth ahead, Tootle reports it is actively seeking new dealers to join the platform and take advantage of the new stock opportunities being generated daily.

Asked to account for the success of Tootle, CEO Gordon Tulloch commented on recent consumer trends. ‘By creating a platform that appeals to the desires of today’s consumer we’re creating more opportunities for dealers. The massive growth of on-demand services in all sectors highlights the simple fact that consumers desire fast, seamless transactions. This has increasingly become the norm, and very soon anyone not offering such a service will be left behind.

‘We’re making the process of agreeing a sale frictionless for both sellers and dealers alike, which, ultimately, is what allows us to deliver a rapid service.’

While Tootle has created a service that appeals strongly to consumers, the team is well aware that dealer relationships are for the long term, with the majority of Tootle’s recent developments focused on enhancing the dealer experience.

Features such as adding cars to a ‘watchlist’, improved notifications and search functionality have all been added, with the goal of continuous improvement. Glenn Thorpe, owner of

Tootle digital director Amy Buckley and CEO Gordon Tulloch Church’s Performance Cars, comments: ‘During our last trading year I have bought a number of cars via the Tootle system. It has proved to be an excellent supplement to our usual sources

of stock.’ Dealer feedback comes in via Tootle’s account management team. While there is an impressive technology stack supporting hundreds of thousands of visitors each month, account managers also assist dealers to find promising opportunities, regularly hitting the phones in order to push them through. Theo Reeves, account manager at Tootle, says: ‘We have thousands of listings each month, with many of our deals closed 100 per cent online.

‘That said, telephone support can be useful, and it’s great to build relationships with dealers on a more personal basis.

‘While we can’t favour one dealer over another when bidding on the same car, if we understand closely what they’re looking for, we can definitely help them become more successful.’

Tootle has already established a strong foundation of impressive partnerships, creating a significant volume of listings on the car sales platform. The RAC, Honest John, Exchange & Mart and Haymarket have all signed partnerships with Tootle, with the company announcing it has many more in the pipeline. Having recently announced another funding round of £2.5 million and with strong demand for its service, Tootle is confident that in the coming years its platform will become one of the primary routes that sellers use to dispose of their cars – looking at the progress it’s made in such a short time, it’s hard to argue against this.

CarDealerMag.co.uk | 75

the vehicle aggregator dealers always wanted findandfundmycar.com is committed to ‘feel good car selling’ for dealers and ‘feel good car buying’ for their customers. The starting point for this bold and ambitious new venture is a co-operative spirit and a belief that online and in a showroom, dealers are the best place for customers to buy and maintain their cars.

distinctively different findandfundmycar.com has been designed for dealers, by dealers

a seamless, innovative search and application journey keeping dealers at its heart

findandfundmycar.com will: Ô never bypass the dealer - customer leads, regardless of outcome, go straight to the dealer Ô ensure all dealers pay just £1.50 plus VAT per space per week, regardless of showroom size Ô charge dealers for ‘advertising space’ at a set price per month, rather than for stock uploads, meaning dealers can upload as many cars as they like per month to their bought spaces Ô mean, on average, a dealer could move one car from the market leader and place four cars on findandfundmycar.com

collaborating for sustainable growth you bring the stock, we bring the customers The investment in a multi-channel advertising and marketing campaign for launch will drive massive numbers of potential customers to the site.

Every penny paid by dealers to advertise their stock on the site will be invested back into building the brand and making findandfundmycar.com a household name.

a brighter future for dealer finance Around 80% of all used car purchases are made using finance, yet typically only 20% of these transactions are made using dealer finance. findandfundmycar.com has been designed to reverse this trend.

76 | CarDealerMag.co.uk

findandfundmycar.com exists to drive leads to dealers and to build a better car selling/buying experience for everyone

launching January 2018

tapping into the many customers who need finance but choose not to use the dealer, is a prize well worth winning; findandfundmycar.com is designed to do just this, rather than competing directly with the dealer

why join the revolution?

1. a ÂŁ5M advertising launch budget 2. every penny will be invested in building the brand 3. all finance sales go through to the dealer advertising the car 4. this is a true dealer driven co-operative service 5. all dealers pay the same advertising fee regardless of size 6. innovative used car search functionality 7. customers can get a finance decision in principle online 8. dealer ratings are based upon genuine customer satisfaction scores 9. all fees and costs are transparent from the start 10. the success of the site relies on the support of dealers and the supply of their stock

findandfundmycar.com for dealers, by dealers together let’s revolutionise the car aggregation market Talk to your local MotoNovo Account Manager or call 0844 880 2401 today and make sure you are part of the findandfundmycar.com revolution.

CarDealerMag.co.uk | 77

Focus on.

Close Brothers

Transparency is key as we help CLOSE BROTHERS

W: closemotorfinance.co.uk

T

he automotive industry is unquestionably one of the leading lights of the British economy, with turnover in 2016 totalling a record £71.6 billion. It’s difficult to dispute, though, that we are entering into uncertain times.

Dealers have been under pressure for years because of changes in consumer buying behaviours, the rise of alternative finance options available to consumers and the volume of new cars flooding the market.

Technological advances, changing buying patterns and a drive to ensure the sustainability of the industry are just some of the challenges dealers are facing today – all of which have seen levels of finance penetration steadily growing.

To maximise turnover, dealers have to invest in expensive premises in prime locations and hold quality stock. Used car sales can offer good profit opportunities, but when the dealer sells a car to a consumer, they can occasionally come under pressure to discount the price.

Although discounting is becoming less frequent in the marketplace, consumers are generally researching the vehicle manufacturer, model specifications and price beforehand. They are therefore aware of differences in the price available elsewhere. Dealers need, therefore, to be careful to get the balance right between servicing their customers and selling cars while maintaining their profit margins.

On top of all this, as consumer needs change, the type of cars on dealers’ forecourts will need constant reassessment. But while many dealers are aware of consumer demands, they aren’t always in a position where they can afford to regularly restock their forecourts.

9/10

Approved applications 78 | CarDealerMag.co.uk

That’s where support comes in from finance partners. Finance penetration might be growing, as is the commission that can be earned from selling finance, but for dealers, how that finance partner supports their business as a whole is just as important.

Close Brothers Motor Finance offers a range of stocking finance plans for dealers to meet their individual business development goals, by offering a tailored approach to help them gain access to finance for stocking through building bespoke funding packages. These can help the dealer by giving them a tailor-made solution to help them increase the volume and quality of stock that’s most in demand, as well as meeting the needs of their customers – and, in turn, improve their overall profits.

Our approach to stocking finance plans, or Dealer Funding, is to support, engage and equip our dealer partners with the knowledge, skills, cash flow and confidence to maximise their buying potential and reach their business goals.

We work with dealers to stock their forecourts, providing products that can be used to develop their forecourt or showroom or by offering long- and short-term stocking plans (minimum 12 months) to meet the cash-flow demands of their business. Sometimes, these products can be cheaper than alternative lending options.

There’s nothing hiding in the small print of our products, so dealers don’t have to worry about any nasty surprises. Transparency is key, which is why dealers are told at the beginning of the process what they can borrow, the interest and any fees.

We pride ourselves in not charging hidden fees, such as charging for the length of time that new

36%

Increase in commission

Dedicated account manager

increase dealer buying power

stock sits on the forecourt. We want the cycle of dealers purchasing new stock, selling and then replenishing to continue, which is why we do all that we can to help dealers make those crucial sales as quickly as they can.

Funding supports dealers with cash flow and gives them increased buying power. We are entering challenging times for some dealers, particularly with the unsettled political and economic landscape. In fact, our Britain Under The Bonnet report found that 5.5 million British motorists say Brexit has already had a direct impact on their car purchasing plans and made them more likely to buy a used car or to hold off their purchase altogether.

Change does bring opportunity, though. The recent cool-down in the new-car market has resulted in consumers flocking to the used-car sector and preferring to finance one-to-three-yearold ‘nearly-new stock’ over brand-new vehicles in the past few months, and we expect this trend to continue this year. Indeed, our Dealer Satisfaction Survey found that dealers cited changing consumer behaviour (33 per cent) and rising affordability of motor vehicles (31 per cent) as key opportunities for the year ahead.

The onus is now on dealers to adapt to technological advances and changing buying patterns to ensure the sustainability of our industry. As technology evolves and consumer buying patterns change, dealers need to ensure

Exclusive insights

they are meeting customer desires and preparing for the future.

Funding helps dealers to purchase newer, more expensive stock without having the money immediately available. This can come in handy at, for instance, an auction when opportunities need to be maximised swiftly. Being able to access funding quickly prevents dealers missing out on important purchases.

Freeing up their cash flow also ensures they have the funds available to run the business.

Most importantly, Dealer Funding puts dealers in a position to make more money. Without having newly replenished stock, they won’t make sales from customers, and potential customers are far less likely to return in the future. Indeed, a stocking finance plan ensures dealers don’t run the risk of having empty space at the showroom and can consistently restock at a competitive rate.

Supporting the dealer to sell more cars and helping their business to grow is vital, but it doesn’t stop there. It’s a journey and an important part of developing partnerships with dealers.

From helping them with a business plan to achieve their objectives, to purchasing more stock to supporting them should their stock not sell – it’s a continuous process. It’s important dealers are able to see the stock that’s shifting in their area, and getting insights from their funding partner will help them do this.

To support dealers it’s important that finance providers offer a transparent and high-level service that will help them to thrive. At Close

£

No

nasty charges

Brothers Motor Finance we have dedicated account managers who work with dealers to manage the finance stocking plan to ensure it continues to meet their expectations, while also offering support and guidance in accelerating the growth of their business. Using intelligence from the local branch and wider UK market, account managers can advise on how to improve sales and ultimately the dealers’ bottom-line profit.

In addition, to further demonstrate our commitment to supporting dealers to sell their stock, we offer free point-of-sale material. This ensures that customers have knowledge and understanding about a wide range of finance options at the point they enter the dealership, allowing them to find an option that is right for their budget and needs while helping dealers with more opportunities to increase their sales.

And it’s not just about funding. Account managers will work with dealers to ensure they have the necessary support and guidance on issues such as regulation and industry changes.

In addition, they work with dealers to create a plan to sell more stock, as well as providing training on finance options. As consumer buying behaviour continues to evolve and dealers have to adapt to changing behavioural patterns, as well as challenging economic circumstances, it is going to be ever more important that they have partners in place that can provide the tailored insight and correct products – both consumer finance and stocking finance plans – that will genuinely help their development and growth.

Chris Bosworth

Motor Finance CarDealerMag.co.uk | 79

Data File.

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

How can I delay having my day in court?

Q

I am a car dealer and the court has written to me to say that there is a hearing for my case on a date when I will be out of the country for that week. What can I do to get the court date changed?

A

The first thing we consider is whether your non-availability was stated on the directions questionnaire that you sent back to the court. This form specifically asks what dates you are unavailable for a hearing.

If you stated on there that you were not available for that date you would think that a simple email or letter to the court pointing out their oversight would suffice, and in most cases it would.

However, where this happened recently, a client wrote to the court pointing out that they had previously stated that they would be unavailable and got the following response: ‘Your letter requesting an adjournment will be considered on

the day of the hearing and we will not consider any further correspondence beforehand.’

Consequently, we had to obtain the agreement of the opponent to adjourn.

A hastily written consent order was drafted and after signature by both parties was emailed to the court. The unfortunate impact of this oversight by the court is that a consent order costs £100 simply for the court to approve it.

In due course we will be helping our client write to the court asking for that fee to be refunded on the basis that it knew in advance that our client would not be available on the date and the court should not have arranged a hearing to land on it.

If you haven’t stated on your directions questionnaire that you are unavailable on the date listed for the subsequently scheduled hearing, then writing to the court is unlikely to get the sought-after adjournment. The only exception to this is if the hearing date is listed more than six

ADVICE

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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.

months after you sent the questionnaire back to the court, as it ‘only’ asks you to give your nonavailability for that timescale.

While you can try to secure the consent of the opponent as above and pay £100, the only other alternative is to make a formal application to the court asking for an adjournment. But again, the fee is £100 and there is no guarantee that it will be granted by the court. Where that application is made, you must include proof that you will be unavailable – such as a letter from a hospital admitting you into hospital.

A client recently paid £100 for an application for adjournment based on the fact that his wife had booked a family holiday some 11 months previously, which fell during the school half-term holiday. The judge allowed the adjournment because our client had provided written evidence of the booking confirmation.

There is no guarantee that adjournments will be granted, though, so the key point to remember is to carefully consider your non-availability when completing your directions questionnaire.

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Must I give deposit back?

Q

I recently sold a vehicle to a gentleman who paid a deposit and signed the order form. However, he now says that after a conversation with his daughter he’s no longer going to buy it and wants the deposit refunded.

WANT TO UPGRADE?

WHY I LOVE LAWGISTICS

Head gasket blew after Corsa went off road – and they wanted me to pay for a new engine!

GARY Cossey is the director of Carz in Ruishton, Somerset. The business typically buys and sells small cars in the price range of around £2,000 to £5,000.

He first encountered Lawgistics when he started following the company’s Twitter account. Cossey found the information that the business was tweeting to be useful, so two years ago he signed Carz up to a subscription as an affordable way of protecting his dealership.

In those two years, there’s one occasion that particularly stands out to him as a time when he was extremely glad to have joined.

‘I had a letter of complaint from a customer. They had bought a Vauxhall Corsa from me and told me at the time that they were buying it for their daughter who wasn’t yet driving, so she was going to learn to drive with it on their farm,’ he said.

‘Six weeks later, I got a letter saying the water had leaked and that had caused the head gasket to go, so I thought it highly likely that they had used it off road and caused damage, as opposed to the car actually being faulty.

I knew it was unfair because it was damage that they had

caused. They must have taken the car off road, broken the pipe, causing the water to leak, then had warning lights on the dashboard telling them the engine was getting hot prior to the head gasket going.

‘They rang me first and I tried dealing with it. I said: “Let’s have a look at it, because the chances are you may have caused something by using it off road. It’s not an off-road vehicle.” They weren’t happy to accept that. They wanted to take it to their garage and have a new engine. I thought that was unreasonable and thought: “I’m signed up to Lawgistics, so why don’t I make use of them?”

‘They dealt with it quickly and I never heard from the customer after that. I know other people in the trade and I recommend Lawgistics, because you could potentially save thousands from just one case.

‘It’s a very good service and I’m more than satisfied.’

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A

It would appear the agreement to purchase the vehicle has been finalised between the two parties and there is a binding agreement.

While his daughter may not be pleased with his purchase, this is not a reason for the cancellation of the agreement.

We would hope the vehicle order form explicitly stated the deposit as being nonrefundable. For extra measure, this should also be stated to consumers before any deposit is taken. If the consumer has simply changed his mind, then the deposit is non-refundable.

This is subject to the agreement taking place at your premises and the vehicle being inspected by the consumer.

However, if you take a deposit over the phone, this may be subject to a ‘cooling-off period’.

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.

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Dragon2000 CarDealerMag.co.uk | 81

Data file.

Thestatistics

| SMMT SALES DATA | TAKING STOCK |

SMMT sales data Oct/year to date

5

DOUBLE-DIGIT DROP

Consumer reassurance urged as seventh month of decline is reported T

he UK car market has seen its seventh month of decline in October, with new car registrations falling by 12.2 per cent.

Year-to-date, the market is down 4.6 per cent compared with 2016, with 2,224,603 cars registered in the first 10 months. This decline was seen across the sector, with business registrations down 26.8 per cent and fleet down 13 per cent. However, popularity for alternatively fuelled vehicles has continued to steadily increase, with registrations up 36.9 per cent to 8,244.

Petrol cars saw modest growth in October, up 2.7 per cent, while diesel took its biggest hit yet, with sales dropping by 29.9 per cent.

SMMT chief executive Mike Hawes said: ‘Declining business and consumer confidence is undoubtedly affecting demand in the new car market, but this is being compounded by confusion over government policy on diesel.

‘Consumers need urgent reassurance that the latest, low-emission diesel cars on sale will not face any bans, charges or other restrictions anywhere in the UK. We urge the government to use the

Top

Most-improved manufacturers in October Maserati

+85%

Aston Martin +71% Infiniti +32% Lotus

+30%

Alfa Romeo +29%

5

Bottom

forthcoming autumn budget to restore stability to the market, encouraging the purchase of the latest low-emission vehicles, as fleet renewal is the fastest and most effective way of addressing air quality concerns.’

At the beginning of November, the SMMT revised its total new car registrations for 2017 to 2.6m – 4.7 per cent down on 2016 and 29,000 fewer than last quarter’s estimate – and October’s registration figures meet those expectations.

Black Horse managing director

Richard Jones said: ‘These figures show the new car market is moving to a more sustainable position.

‘In the longer term this correction in sales is positive for the market and should reduce concerns of new car oversupply impacting negatively on used car values.’

Simon Benson, director of motoring services at AA Cars, said: ‘Confidence in new, cleaner diesel vehicles must be restored and consumers need to understand that no town or city has plans to charge Euro 6 diesels to enter.’

Worst-performing manufacturers in October Jeep

-64%

Subaru

-61%

Jaguar

-39%

Smart

-36%

DS

-35%

Ford Fiesta is back on top again as it’s named UK’s best-selling car in October THE FORD Fiesta has placed at the top of the monthly best-selling cars list for the first time since the new model was launched.

The sixth-generation Fiesta had long been the best-selling car in the UK until May 2017, when sales dropped owing to that model being phased out as Ford prepared to launch a new 82 | CarDealerMag.co.uk

version. The release of the seventh-generation Fiesta seems to have gone according to plan, though, and the updated model topped the SMMT’s new-car registrations list for October 2017.

In total, 7,256 new Fiestas were registered, putting Ford’s popular hatchback miles ahead of the Volkswagen Golf, which came

second with 5,547 new units sold. Ford also secured third place, with the Focus seeing 4,503 new examples registered, and 10th, as 2,493 new Kugas were also sold. The Nissan Qashqai – the UK’s best seller in September – slipped to fourth place with 3,923 registrations. The remaining top 10 cars were the Mercedes-Benz A-Class (3,390), Kia Sportage (2,850), Audi A3 (2,764), Volkswagen Polo (2,703) and the BMW 4 Series (2,558).

Aston Martin

Jaguar

+71%

October 2017 Marque

2017 303

Alfa Romeo Aston Martin Audi Bentley BMW Chevrolet

October 2016

% market share

Abarth

-39%

2016

Year-to-date (YTD)

% market share

0.19

274

293

0.19

227

87

0.05

51

13,699

8.66

14,659

132

0.08

171

11,056

6.99

13,541

5

0.00

0

% change

2017

% market share

2016

% market share

% change

0.17

3,399

0.15

11.89

10.58

3,803

0.13

29.07

4,302

0.19

4,265

0.18

0.87

0.03

70.59

1,318

0.06

708

0.03

86.16

8.14

-6.55

152,234

6.84

153,070

6.57

-0.55

0.09

-22.81

1,495

0.07

1,709

0.07

-12.52

7.52

-18.35

148,849

6.69

152,197

6.53

-2.20

0.00

0.00

64

0.00

3

0.00

2,033.33

0.15

Citroen

3,016

1.91

3,515

1.95

-14.20

46,426

2.09

57,308

2.46

-18.99

Dacia

1,625

1.03

2,280

1.27

-28.73

22,700

1.02

23,203

1.00

-2.17

444

0.28

687

0.38

-35.37

8,275

0.37

14,454

0.62

-42.75

Fiat

2,463

1.56

3,397

1.89

-27.49

40,916

1.84

53,265

2.29

-23.18

Ford

19,580

12.38

21,411

11.88

-8.55

253,760

11.41

275,631

11.83

-7.93 -8.95

DS

Honda

2,962

1.87

2,783

1.54

6.43

47,746

2.15

52,439

2.25

Hyundai

6,553

4.14

6,585

3.65

-0.49

81,868

3.68

80,234

3.44

2.04

Infiniti

157

0.10

119

0.07

31.93

3,252

0.15

2,619

0.11

24.17

Jaguar

1,827

1.15

2,981

1.65

-38.71

30,881

1.39

29,397

1.26

5.05

280

0.18

780

0.43

-64.10

5,772

0.26

12,542

0.54

-53.98

Kia

6,900

4.36

6,590

3.66

4.70

83,471

3.75

79,539

3.41

4.94

Land Rover

5,270

3.33

5,645

3.13

-6.64

72,226

3.25

69,289

2.97

4.24

725

0.46

812

0.45

-10.71

11,123

0.50

12,234

0.52

-9.08 -14.77

Jeep

Lexus Lotus Maserati Mazda

26

0.02

20

0.01

30.00

254

0.01

298

0.01

146

0.09

79

0.04

84.81

1,452

0.07

1,191

0.05

21.91

1,655

1.05

2,213

1.23

-25.21

35,432

1.59

41,977

1.80

-15.59 0.00

45

0.03

0

0.00

0.00

492

0.02

0

0.00

12,136

7.67

11,334

6.29

7.08

158,478

7.12

148,226

6.36

6.92

MG

194

0.12

257

0.14

-24.51

3,515

0.16

3,562

0.15

-1.32

Mini

3,144

1.99

4,792

2.66

-34.39

54,945

2.47

56,508

2.42

-2.77 -13.51

McLaren Mercedes-Benz

968

0.61

1,136

0.63

-14.79

13,742

0.62

15,889

0.68

Nissan

8,183

5.17

11,792

6.55

-30.61

135,574

6.09

131,628

5.65

3.00

Peugeot

5,201

3.29

5,922

3.29

-12.17

73,019

3.28

86,908

3.73

-15.98

Porsche

931

0.59

929

0.52

0.22

11,864

0.53

10,728

0.46

10.59 -14.66

Mitsubishi

Renault

3,204

2.03

4,360

2.42

-26.51

61,850

2.78

72,472

3.11

Seat

4,098

2.59

3,528

1.96

16.16

48,335

2.17

40,440

1.74

19.52

Skoda

4,941

3.12

5,427

3.01

-8.96

68,208

3.07

68,737

2.95

-0.77

Smart

580

0.37

902

0.50

-35.70

9,340

0.42

10,251

0.44

-8.89

SsangYong

210

0.13

188

0.10

11.70

3,215

0.14

4,025

0.17

-20.12

Subaru

99

0.06

256

0.14

-61.33

2,217

0.10

3,063

0.13

-27.62

Suzuki

1,803

1.14

1,963

1.09

-8.15

35,488

1.60

33,556

1.44

5.76

Toyota

6,042

3.82

5,332

2.96

13.32

90,844

4.08

86,250

3.70

5.33

Vauxhall

9,740

6.16

14,949

8.30

-34.85

171,491

7.71

217,905

9.35

-21.30

Volkswagen

13,756

8.70

14,023

7.78

-1.90

179,132

8.05

177,043

7.60

1.18

Volvo

3,302

2.09

4,027

2.24

-18.00

39,876

1.79

38,888

1.67

2.54

Other British

48

0.03

63

0.03

-23.81

602

0.03

667

0.03

-9.75

Other imports

363

0.23

168

0.09

116.07

4,757

0.21

2,946

0.13

61.47

-12.20

2,224,603

Total

158,192

180,168

2,330,663

-4.55 Figures supplied by SMMT

CarDealerMag.co.uk | 83

Auctions.

Clang moment of Premier proportions

Confessions: p93

Exclusive remarketing Henstock deal with IMA agreed Get your stock in now for CONTRACT

AUCTION STATIONS

B

urrows Motor Group has agreed a solus remarketing deal with Independent Motor Auctions’ Leeds centre. The South Yorkshire-based group, which has nine sites across Rotherham, Barnsley, Doncaster, and Sheffield, has been a customer of Independent Motor Auctions Leeds since 2014 and has used several firms for remarketing.

However, it has now agreed a deal that will see all its sites selling approximately 2,500 units a year exclusively through Independent Motor Auctions.

The Leeds centre has seen a 20 per cent rise in car volumes over the past 12 months and it added a new LCV sale earlier this year.

Justin Lane, the managing director of Independent Motor Auctions (IMA), said: ‘We are delighted that Burrows has selected us for all their remarketing requirements.

‘Our Leeds auction facility has gone from strength to strength and we have received excellent feedback from both vendors and buyers.’

Simon Burrows, group sales manager of the Burrows Motor Group, said: ‘We

selected Independent Motor Auctions as they have given us excellent customer service. They have also proved that they can sell our vehicles quickly and efficiently and have consistently achieved great Cap values. We are looking forward to working with them to increase the profitability of our vehicle sales at their Leeds auction facility.’ IMA has auction centres in Leeds and Blackpool and employs a total of 38 staff. The only family-run auction business in West Yorkshire, it operates from Scotland down to the West Midlands.

Clients also include Days Motor Park, Vantage Motor Group, Cars2, John Roe Toyota and Jennings Motor Group.

Justin Lane

To Oz and back as Mark returns to BCA MARK Hankey is returning to BCA to take 2005 and last worked for BCA in 2012, on a group business development role after leaving for Australia with his family that a five-year sojourn in Australia. year. Latterly, he held a sales director role He originally joined BCA in 1992, at Cox/Manheim in Australia. initially as dealer development manager Hankey said: ‘To be returning home to for the north and Scotland, and since BCA as the business continues to lead the that time held numerous positions in all industry is an exciting prospect, and I am market sectors for BCA, including national looking forward to renewing relationships sales with the team and contacts Car manager. dealer new strip ad 11-17 9/11/17 14:40 Page 1throughout the He was appointed UK sales director in UK and Europe.’

The Fleet Auction Group Professional Vehicle Auctions for Professional Vendors & Buyers

that busy new year ahead!

A

s we approach the end of 2017, dealers will look to build stock levels for the typically busy first quarter.

Putting the work in through December and January will help ensure a positive first quarter and a great selection of attractive used stock to tempt retail customers.

December offers some great buying opportunities as businesses clear the decks in preparation for the new year. BCA is anticipating steady volumes from leasing and contract hire, major dealer groups and webuyanycar.com as these companies need to keep stock churning all the year round.

In fact, BCA’s physical auction programme runs up to the close of business on December 22 and opens again on January 2 to deliver buying opportunities to our customers.

Over the Christmas period we will stage e-auctions to allow dealers to take advantage of stock as it becomes available.

For some dealers, however, this can be a tight period for working capital, since retail sales are often slow as consumers enjoy the season's festivities.

At this busy time, BCA Partner Finance can assist and is supporting its dealers by extending the availability of funding to help them build inventory levels for the busy new year period.

As well as all stock bought at BCA auctions, Partner Finance customers can secure funding for all their partexchange cars, making it even easier to acquire the bestquality stock.

BCA Partner Finance allows dealers to trade more flexibly and take advantage of opportunities that might otherwise be out of reach. We are seeing our customers use the service to free up funds, which enables their business to grow how they see fit. Funding is available for the whole auction purchase, including fees such as transport and delivery costs and VAT where applicable, and interest is charged at a competitive flat rate – equivalent on average to around £2 a day – with both cars and LCVs funded using the scheme.

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

Excellent variety of weekly stock from premium sources Regular Top Car Sales, Motorcycles & Motorhomes Fixed cost buyers premium User friendly website & stock locator. On-line bidding Fleet Car Sales every Monday & Thursday at 10am Van sales every Wednesday at 10:30am Wheelchair Accessible Vehicles fortnightly, Wednesdays at 11am Truck, Trailer & Plant fortnightly, Wednesdays at 12noon Collection of vehicles 24 hours a day, 7 days a week Purpose built 12 acre auction complex Enclosed and heated auction halls and viewing area The UK’s finest auction restaurant Central UK location

www.fleetauctiongroup.com 84 | CarDealerMag.co.uk

Call 01530 833535 or go online for account application NAMA Vehicle Grading

Taking Stock.

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

Half-term break takes its usual toll but used values still go up October proves to be a busy month and a healthy supply from all sectors is anticipated throughout December, with dealers looking to stock up for new year

B

CA’s Pulse Report shows that average used car values continued to rise during October, with the headline figure climbing by £247 (2.7 per cent) to £9,364 – a record value.

The market experienced the usual seasonal fluctuations around the half-term holidays, but overall BCA reported another strong trading month as volumes at auction remained high.

Average values for fleet and lease cars continued to rise and were at record levels for the third month running, as buyers focused on good-quality, well-specified oneowner cars. Average dealer partexchange values fell marginally from the record level seen in September but were the second highest on record and demand remained strong in the sector.

Year-on-year, the headline figure was up by £773 – equivalent to an 8.9 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.

Stuart Pearson, BCA’s managing director for UK remarketing, said: ‘October was another busy month at BCA, with plenty of competition from professional buyers across the range of stock on offer. We experienced good levels of demand from buyers, with just the usual seasonal distraction of the half-term holidays towards the end of the month.

‘Online trading was strong throughout, with BCA reporting record traffic for Live Online in the first week of October and sales penetration rising to 28 per cent across the board – a year-onyear increase of four percentage points.’

He added: ‘As we approach the end of 2017, many dealers will often start to build stock levels in readiness for the typically busy first quarter of the new year.

‘BCA is anticipating a healthy supply from all sectors throughout December and has a busy

Headline average value of a used car:

£9,364

programme that will keep stock churning for our vendors and buyer interest fuelled.’

Average values continued to rise in the fleet and lease sector, improving for the fourth consecutive month and reaching a record level for the third month running. Values rose by £78 (0.7 per cent) to £10,856, with retained value against original manufacturer’s retail price falling slightly to 43.16 per cent. Year-on-year values were up by £620 (6.0 per cent), as both average age and mileage continued to reduce.

Having reached record levels last month, dealer part-ex values fell by just £17 to £4,740 in October as demand remained strong.

Year-on-year values were ahead by £96 (a 2.0 per cent increase), with average age and mileage little changed.

Values for nearly-new vehicle values fell in October, from £19,225 to £17,853. Model mix has a significant effect in this very low-volume sector, with brand-specific winners and losers.

Dealer partexchange values:

£4,740

CarDealerMag.co.uk | 85

A Global View.

...in association with

Surge in sales expected in run-up to new year Justin Ashton, sales director at CDK Gulf, discusses how automotive retailers in the Middle East are preparing for the introduction of VAT

O

n January 1, 2018, Saudi Arabia – along with the United Arab Emirates (UAE) – will implement VAT at the rate of five per cent in the face of falling oil prices and revenues.

Car sales are already down across the Gulf Cooperation Council (GCC) member states and this new tax is predicted to put even more pressure on an already challenging market in the region.

Unlike the UK, where VAT has been a part of buying and selling goods for more than 40 years, automotive retailers in Saudi Arabia and the UAE have had little to no exposure of a taxation system. As a result, CDK Global is working with dealers in the Middle East to help them understand the processes involved with implementing the new taxation system into their businesses – and helping them to improve consumer confidence.

Rising costs in a volatile market With the impending introduction of VAT, dealerships are preparing for a surge in car sales in the run-up to the new year.

However, when oil prices dropped 18 months ago, government budgets were reduced. Contracts in construction, oil and gas were put on hold and, inevitably, companies started making

redundancies. The knock-on effect for dealers was a 25 per cent to 30 per cent drop in car sales.

Because dealers in the Middle East are also vehicle importers and distributors, they often have three to four months’ supply of vehicles and parts. Therefore, when sales drop, unsold inventory piles up and costs can mount very quickly. As a result of this volatility, dealers in the region are now looking at how their dealer management systems (DMS) can help them prepare for future fluctuations in revenues and maximise efficiency of stock volumes, logistics and cash flow.

Retailers must now focus on increasing market share, as chasing unrealistic volume isn’t profitable or sustainable in the long term.

Planning ahead Drawing on its experience in markets around the world, CDK Global is working with retailers in the Middle East to implement market-specific DMS software to improve back-end operations and aftersales processes. This can also help dealers maximise sales in high-volume periods, such as during the month of Ramadan. This is a major period for sales, in which dealers can expect to sell 15 and 20 per cent of their annual car sales.

‘Retailers must now focus on increasing market share, as chasing unrealistic volume isn’t profitable or sustainable in the long term.’

With no other sales peaks from events such as registration plate changes, it is vital that dealers are primed to take advantage of and also explore new ways of generating revenue, such as offering buy-back deals for private and business users.

Certified used car programmes can channel more used cars with greater profit margins back into the business, so dealers should also look to shorten ownership cycles and guarantee customers return sooner.

CDK Global is working in partnership with businesses to assist them with VAT compliance.

This includes providing updates to DMS software to enable dealers to buy and sell cars, parts and services with VAT and run VAT reclaims and reports. CDK Global experts are also advising dealers on how to use their DMS software to its full potential. This will not only help dealers capitalise on the expected growth in demand for nearly new and used cars, but it will also ensure they are using all available features to maximise aftersales opportunities.

Justin Ashton has worked in the automotive industry for more than 20 years, occupying progressively senior dealership roles before migrating to supplying IT solutions to dealers and OEMs across the world. His current role as regional sales director gives him responsibility for CDK Global sales across the Middle East market.

86 | CarDealerMag.co.uk

Real Deals.

IN ASSOCIATION WITH

The sporty car for your sensible side Don’t want to grow up but still want to enjoy cheap and economical driving? The Lexus IS200 is what you should be looking at, says Adam Weller

W

hen it comes to Real Deals, we like to find versatile cars: machines that can do more than just the shopping run as well as more than just fire you down a road at terminal velocity.

And while the Lexus IS200 isn’t a performance derivative of an existing model, its driving and handling chops made it stand out over the lower rungs of the Mercedes C-Class and BMW 3 Series range at the time. It also cropped up in many Need For Speed and Gran Turismo video games, which can only have helped ingrain it as a sporty car in the minds of persuadable youths.

Based on the Japanese market exclusive Toyota Altezza, the IS200 launched in 1999 to compete with the aforementioned German rep-mobiles.

Much like the BMW 3 Series, the Lexus focused on providing a satisfying driving experience and featured perfect weight distribution to complement the 153bhp, two-litre straight-six engine. By all accounts, Lexus was successful in its attempt to match its German counterparts, creating a very well-rounded package in one of the nicer-looking compact saloon bodies around at the time.

The driving experience is superbly dynamic, thanks to the IS200’s sporty yet comfortable suspension set-up – you can have a B-road blast, but when you inevitably hit a pothole, your vertebrae won’t be jolted to the point of

merger. While 153bhp is a decent power figure, the 0-60 time of 9.3 seconds feels a little slow by today’s standards. However, once it’s up to speed, the car is certainly capable of matching your desires to have fun in the twisties.

This specific example is currently for sale at Showroom Shine Cars in Coventry with a paltry 69,000 miles on the clock.

The only reported reliability foible with the IS200 is the timing belt, which usually needs to be replaced somewhere around the 60,000-mile mark. This model has already received a new timing belt in 2012 courtesy of a previous owner and has a clean bill of health beyond this detail, having passed its last MOT with no advisories.

Our car is the sought-after Limited Edition – LE – version. Introduced alongside a range-wide facelift in 2003, the LE is a very well-specced package. Climate control, traction control, electric windows all round, a CD autochanger, electric sunroof and automatic lights take the headlines from a technological standpoint.

Meanwhile, leather seats, 17-inch alloys and metallic paint add to the IS200’s premium look.

Pit it against the E46 BMW 3 Series from the same era and it seems like a reasonable deal. We found one low-mileage two-litre petrol 3 Series for a smidgen under £2,000, but most cars of similar spec and mileage seem to start from roughly £2,700. Our IS200 will cost you £2,395, so it could

A new timing belt was fitted five years ago to the car be a slightly cheaper alternative if you’re in the market for this type of car.

Fuel consumption of 30mpg should be readily achievable, while in terms of practicality, the IS200 is roomy inside, but it does fall behind its rivals on boot space.

As such, we wouldn’t suggest that it’s one for families who need to do school runs or pick up big shops.

So, who is it for?

The IS200 is a good choice for those of us who don’t really want to grow up: those who want something cheap, economical and sensible but also want to enjoy their driving.

Yes, the BMW 3 Series can provide that too, but is it anything like as interesting? Will it turn the same heads (if any)? No. If you want a unique saloon car that’s fun to drive, the IS200 is the way to go.

The Lexus IS200 is very well specced

This sought-after Limited Edition model has a real premium look about it CarDealerMag.co.uk | 87

Market Insight.

...in association with ASE-global.com

Rise in interest rates is likely to affect car sales industry badly Unhelpful reports on new car market slowdown are causing investor confidence to drop, says Adam Cottam

O

ctober was a tough month for UK motor retail share prices, with some significant falls recorded. Pendragon issued a significant profit warning, while Inchcape and Vertu released more positive results.

Once again it was quiet on transaction activity among the listed groups, but deals were still taking place in the wider industry, something that we expect to continue as we end the year.

Share price performance The industry is not being aided by the slowdown in the new car market and the mainstream media picking up on this fact and reporting on it, in some cases unhelpfully. This has led to a drop in investor confidence, in an industry that investors don’t appear to fully understand and one that is generally perceived to be undervalued.

The main story recently has been about the potential for interest rates to rise for the first time in more than a decade, and with CPI hitting three per cent in September and wages growing nearly one per cent slower, the Bank of England did indeed increase rates on November 2, which is likely to have a negative effect on the car sales industry. Much of the recent growth in the industry has been built on low-interest PCP finance, which will go up in cost now the rates have been hiked, increasing monthly payments

Share price movement from Jan 3 to Oct 31, 2017

Share price movement from Jan 3 to Sep 29, 2017

Pendragon

80.8%

102.4%

Vertu

103.4%

109.8%

Lookers

89.6%

102.3%

Inchcape

111.3%

122.9%

Cambria

111.7%

120.0%

Caffyns

86.7%

87.6%

Marshall

116.3%

122.1%

for consumers and hitting sales. It will be interesting to see whether economic growth is affected by the rates lift.

Financial performance In an announcement that was a shock to many, Pendragon released a profit warning that saw its share price initially fall by 17 per cent. Chief executive Trevor Finn bought two million shares, which enabled the price to recover, but as can be seen from the table above, the overall price impact has been a negative one. A fall in underlying profit in 2017 of 20 per cent was also revealed. Inchcape issued a three-month trading

update to the end of September that showed the business was in strong shape considering all worldwide operations. In the UK, the retail business slowed predominantly because of margin pressures, mainly coming from new cars, although nearly new cars (reported as used) were also starting to show signs of pressure.

For the six months to August, Vertu reported strong performance in spite of the tough conditions in the market. Although new and used were marginally behind last year, cost saving measures and the closure of poorly performing sites meant profitability held up strongly.

Transaction activity There were no transactions involving the UK’s motor retail groups but there were transactions involving privately owned businesses, with Johnsons adding four new dealerships and Motorline adding Ashford Peugeot and Nissan to their portfolios. ASE advised on both deals, and there is expected to be more activity in the coming months.

Given the tough market and general economic uncertainty, it will be interesting to see how many owner-drivers are pushed to exit the industry and sell to the bigger groups, continuing the consolidation we have seen for many years now.

Adam Cottam is corporate finance executive at dealer profitability specialist ASE plc. You can read his column here every month.

88 | CarDealerMag.co.uk

Make sure you’re properly covered.

Then you can focus on moving your business forward.

It’s good business sense.

Call

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

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CarDealerMag.co.uk | 89

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Recruitment.

VANTAGE TOYOTA

Simon is made centre principal SIMON Parkin has been appointed as centre principal for Vantage Toyota in Wakefield.

He joined Vantage earlier this year, working at the company’s Kia and Honda sites in Bradford before making the move to Wakefield.

The Yorkshireman started out in the car sales industry in 1994, having completed an apprenticeship in engineering. He worked his way up from a sales executive role to senior management positions.

Parkin said he enjoyed working at the Wakefield dealership as the team were all very engaged and wanted to make a difference.

He added: ‘Working closely with the senior directors at Vantage makes it easier to make things happen and react to the market, creating a better buying experience for our customers.’

CAP HPI

Debbie takes on role of data operations director

A

utomotive data expert Cap HPI has appointed Debbie Capell as its new data operations director.

The role will involve overall responsibility for data management and processes, partnership building and growth, plus the implementation of operational strategies to support the company’s ongoing international roll-out. She will report to managing director Chris Wright.

The appointment is part of a broader move to expand the company’s data operation and speed up the development of new products.

Capell joins the business from senior roles as head of specialist operations at Close Brothers Motor Finance and head of global operations at technology and language service provider thebigword.

She said: ‘I’ve joined at an exciting and crucial time for the business. I’m confident that my international and broad operational experience will

serve the ongoing growth of the company, further underpinning its position and reputation.

‘I share the business vision that data is the new oil for the automotive industry which, in turn, will underpin its future growth and efficiency. The customer is the central focus for Cap HPI, leading the market with new data, technology and insight.’

The company recently announced the launch of enhanced electric vehicle data.

Wright said: ‘Our business is based on great people, data and technology.

‘This allows Cap HPI to grow and develop alongside the demands of the automotive industry.

‘Debbie’s skills will add tremendous value to our partnerships with data suppliers, provide further operational efficiency and support the ongoing drive to lead the industry with innovation.’

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Data file.

James Litton

TRADER TALES

Beware those bear traps of upcoming data regulation

T

here have been two noticeable consumer law changes during the two decades I have been working in the retail motor industry and both attracted a fair amount of hysteria in the run-up to coming into force: the Distance Selling Regulations and the more recent Consumer Rights Act. While both directives have given me the occasional bout of gyp, I haven’t experienced the apocalyptic fall-out that many predicted following the change in legislation.

In May 2018, a law covering the use of personal data could present a more challenging commercial problem. The General Data Protection Regulation (GDPR) is a European law that replaces the Data Protection Act (DPA) that has been in place since 1998.

Let’s be honest, I would expect staff member personal details to be well scrutinised without unauthorised use, but customer details on the other hand are probably a loose affair in most car dealerships in 2017. How many inquiries are taken on a Post-it note or back of a business card, even in the biggest groups? How many paint touch-up sticks are sold on a cash invoice to a retail customer who gives their name and number that inevitably clutter DMS systems with spurious data? How many service invoices for part exchanges get removed from book packs, some even with credit card slips?

The fines for failing to comply with the DPA would hurt in 2017, but after next May a business can be fined up to 20m euros or four per cent of the turnover, whichever is the higher figure. In addition, if a data breach or misuse of data occurs today, a company has no legal obligation to report it, but from May a company has 72 hours from initial finding to follow a strict data breach protocol.

If a customer volunteers their details for an inquiry today, we have the right to assume that we can contact that customer through any medium.

From May, though, a company has to have strict authorisation allowing follow-up. We also have to be able to offer every consumer on whom we hold data the opportunity to delete all of their records.

The issues are obvious. If a new customer doesn’t consent to the use of their data but requests a call, we cannot call them. They will be angry and complain but there is absolutely nothing we can do about it.

The biggest bear trap has to be the opportunity for the legal profession to exploit GDPR in perhaps the same way it has the mis-selling of PPI. Indeed, paying compensation for sending a potential customer an unsolicited new car deal direct mail fills me with dread.

‘They will be angry and complain but there is nothing we can do.’

James Litton 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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The day that I dropped a Premier League clanger

A

s I’m sure a lot of you are aware, driving a customer’s car is a constant occurrence when working at a dealership. I’d personally find myself behind the wheel of several thousand pounds’ worth of saloon a few times a month and, given the cost and importance of the vehicle, the drive is always accompanied by a fair amount of stress.

On one occasion, a Premier League player (no names, no pack drill) had dropped his pride and joy to our dealership for some routine maintenance work. A gleaming white example, it featured large, gloss black alloy wheels.

By this point, I’d driven a significant number of customer vehicles. Ever cautious with them, I’d never had an incident – not even a kerbed wheel.

Sitting inside the snug sports car interior, I was aware of the vehicle’s overall size. The car had been left in the main garage, so I drove it cautiously towards the dealership parking area, believing the work to have been completed. It was a beautiful day, clear and crisp – everything was well with the world. Then it happened… Crunch!

I’d clanged the front right alloy into the high section of kerb framing the car park.

Jumping out quickly to look at the result revealed a sizeable chunk of metal missing from the wheel.

My colleagues quickly rolled the car back into the garage – it had travelled a matter of metres – and attempted to work out a plan to reverse the damage.

One technician noticed a set of similar – though not identical – alloy wheels stacked in the corner of the workshop. They’d do – but there was no way the customer wouldn’t notice the change, we thought. Bolted on and tightened up, the team allowed me to once again get back in the car – incredibly trusting, considering I’d been the one to cause the whole disaster.

I drove almost impossibly slowly to the customer’s house. Arriving outside – wheels intact, I may add – the owner came out to inspect his car.

‘Oh, you got those on quickly!’ ‘Got what on?’ I quickly replied. ‘The new wheels I’d ordered – I didn’t think they’d arrive until next month.’

He then grabbed the keys from me and strode back into the house – leaving me open-mouthed and ready to return to the dealership and my laughing colleagues in the parts department who had royally stitched me up...

‘The drive is always accompanied by stress.’

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

How seriously should dealerships take looming car cyber-security threats?

Protection is at 1980s levels for desktop PCs, Paul Smith discovers

O

ver the past three years there has been a detectable increase in cyber-attacks on vehicles. During a series of vehicle hack attacks starting last spring, 24 cars from 19 manufacturers were broken into using a radio frequency exploit known as the ‘amplifier attack’.

This inexpensive, yet ingenious, exploit involves amplifying the radio frequency in cars remotely to trick the keyless sensor technology into thinking the vehicle’s owner is near – thereby opening the targeted cars from up to 100 metres away. A Ford Galaxy, Audi A3, Toyota Rav 4, BMW 730d, Volkswagen Golf GTD and Nissan Leaf were all found vulnerable to this type of threat at the time.

The fact that 95 per cent of European car brands use keyless entry fobs speaks for itself.

Back in mid-2015, a highly publicised ‘stunt hack’ of a 2014 Jeep Cherokee in the States resulted in Fiat Chrysler having to complete a 1.4m vehicle recall, fixing the vulnerability through an upgrade to its Uconnect software, which powers new-style digital dashboard displays that had been fitted into three different marques in the US. The exploit allowed hackers to take control of the vehicle’s infotainment systems and remotely send messages via the internet to alter the car’s settings of the windscreen wipers, radio, even steering, brakes and transmission. They demonstrated the ease with which they could shut off the engine and even disable brakes and drive the car off the road. More recently, an

autonomous vehicle was hacked by exploiting the vulnerabilities of the light detection and ranging (LiDAR) system, which enables first-generation autonomous vehicles to build a 3D picture of the hazards around it.

Uber sensibly hired two renowned car hackers to help it develop security around its new selfdriving taxis being piloted in Pittsburgh. It was a good move, because hackers recently launched an attack against LiDAR-based self-driving cars by overwhelming their sensors with images of fake vehicles and other objects using a simple handheld laser pointer worth less than £40.

The key question remains: is vehicle cybersecurity keeping up with the adoption of autonomous vehicle systems and cyber-security techniques in the IT security world, and if not, why not, when lives are clearly at stake?

One expert, Professor Andry Rakotonirainy from Queensland University of Technology’s Centre for Accident Research and Road Safety, has researched the security systems of some autonomous systems and connected cars and found there was little protection against hacking.

‘The security protection on cars is virtually nonexistent. It is at a level of protection that a desktop computer system had in the 1980s,’ he said.

‘The basic security requirements such as authentication, confidentiality and integrity are not strong. What this means is that as vehicles become more and more connected and autonomous, the threat of cyber-attack increases,

putting people’s safety and security at risk.’

Dealers aren’t immune from this increasing cyber-threat. Rapid adoption of increasingly sophisticated and networked IT systems in dealerships, together with the arrival of more connected cars on their forecourts, puts their central systems in the line of fire.

Dealers’ DMS, CMS, Emacs and other dataintensive IT systems hold vital information about vehicles sold and being maintained by them.

A hacker might decide it’s easier to target these central systems and from there hack into multiple vehicles on a dealer’s books – or simply steal and sell this vital vehicle data to thieves.

The key is to be aware of the fact that there are more and more networked IT systems in use in your dealership and in the cars you are selling and servicing. This inevitably means you are going to need to beef up your IT skills across the board, while considering cyber-security as a key part of this upskilling push.

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...

Volvo V90 Cross Country It’s a warm welcome to the new Swedish kid on the block, in spite of its little foibles.

by JAMES BAGGOTT @CarDealerEd

V

olvo’s makeover from manufacturer of functional, Fisher-Price-style, utilitarian vehicles to doyen of smart, bold, luxury cars is complete.

What started with the much-lauded introduction of the long-awaited XC90 to critical acclaim created a snowball effect of Volvo love for the following XC60, V90 and soon-to-arrive XC40.

There’s no denying the Swedish firm is on a roll, which makes my time with this, the V90 Cross Country, all the more intriguing.

After seven months with an Audi A6 Avant, swapping the keys for the Volvo was a bit of a shock. They’re incredibly different cars, and immediately noticeable was the harsher ride in the Volvo and its lack of power compared with the far higher, pokier diesel in the Audi.

That said, as my time with the car has fermented, I’ve got used to both and accepted the slightly harsher ride over potholes and more sedate pace. I’ve also grown to love the functionality of the Volvo and the huge amounts of space it offers.

This is the Volvo V90 D4 AWD Cross Country Automatic. Under the bonnet is a 2.0-litre, 190bhp engine capable of 130mph and hitting 60mph in 8.5 seconds. The latter sounds a bit lacklustre, and sadly it is, feeling somewhat underpowered on the road. But what it lacks in go it makes up for in economy – an impressive 54.3mpg is achieved on the combined cycle and it emits just 138g/km.

It weighs in at a hefty £46,755 – and nearly £6,000 of that is options. The Xenium pack adds a power glass panoramic sunroof and a brilliant 360-degree parking camera. It also includes parking assistance, which will automatically park you both parallel and perpendicular, but costs a whopping £2,000. I’m experiencing mixed results with it, but will report back over time.

Other options we couldn’t do without include keyless go (pricey at £575, though) and the family pack, which offers clever built-in booster seats in the rear, sun curtains and power child locks (£450). The seat pack, which includes mechanical cushion extension, a powered memory driver seat and powered passenger seat, should really be included as standard but added £1,550 to the

Clever tricks and gadgets abound with the V90 Cross Country – with lots of space inside, too

THE KNOWLEDGE Model: Volvo V90 D4 AWD Cross Country Price: £46,755 Engine: 2.0-litre turbo diesel Power: 190bhp Torque: 400Nm Max speed: 130mph 0-60mph: 8.5 seconds MPG (combined): 54.3 Emissions: 138g/km Mileage to date: 2,765 THIS MONTH’S HIGHLIGHT: Finding out for the first time just what this Volvo is capable of. price tag, while other extras you really shouldn’t pay extra for are ‘smartphone integration’ at £300 and a CD player at £100.

I’m rather taken with the huge, touchscreen multimedia system in the middle of the console.

It controls everything, from heating to heated steering wheel, sat nav to music.

But as good as it looks, and as smart as it is to use, I often encounter problems. Sometimes CarPlay will work, sometimes it gets stuck in a phone selection screen that does nothing, while I

find the sat nav can be frustrating to follow. This is the first time that I’ve had the chance to get to know CarPlay and it really is excellent – when it works. Plug your phone in, via a cable, and you can read and answer text messages via Siri, you can make and receive calls, or use Apple Maps.

I tried the latter on a recent trip and was amazed at how easy it was to input a destination with Siri’s help – I did it all via voice instructions.

However, a mile from the end of my trip it went haywire and attempted to send me on a half-hour detour. It’s situations such as this that make me think the dawn of the driverless car is a long way off yet.

The Volvo has plenty of other clever tricks and gadgets to play with, though, and I’m still getting used to the active lane steering and traffic jam assistance. I’m not 100 per cent sure on either yet, so again will report back in the near future.

I’ve got a date set to pop to a local dealer soon to have the car’s built-in SIM card activated, which will give me the ability to gather information on the car’s status via a smartphone app. It’s something I’m very much looking forward to trying out. For now, though, I’ll simply continue enjoying driving one of Volvo’s stylish new kids on the block.

CarDealerMag.co.uk | 95

Long-termers.

LATEST FROM THE FLEET...

Seat Leon Cupra 300 This hot hatch presses all the right buttons when it comes to performance and exterior design.

by DARREN CASSEY @DCassey

B

ritain has a long-running love affair with the hot hatch. It seems consumers here can’t get enough of the mix of performance and practicality such cars offer, and the Seat Leon Cupra has always been popular among car enthusiasts.

That’s why we’re incredibly excited to be running the latest model on a long-term test.

It’s a great time to get the new Cupra, as the hot hatch market is ridiculously bloated and there are a huge number of capable rivals hovering around the £30,000 mark worthy of attention.

Another addition is the Hyundai i30 N, which undercuts its rivals on price with only a small performance penalty, while the recently revised and utterly brilliant Honda Civic Type R can be had from about £31k.

Then there’s the Ford Focus RS, VW Golf R and Peugeot 308 GTI to name a few others...

So with all that competition, what does the Seat bring to the table? We’re running an SC model – three-door in Seat-speak – with a sixspeed manual. The base price is £30,155, which is super-competitive.

Options on our car are limited to £575 for Monsoon Grey metallic paint, £560 for the gorgeous 19-inch CUPRacer alloys and £1,290 for black bucket seats.

The latter are pricey but highly recommended, as the standard Cupra seats look like they’ve come straight from a base diesel model.

Under the bonnet is a 2.0-litre petrol engine

THE KNOWLEDGE Model: Seat Leon Cupra 300 Price: £32,580 Engine: 2.0-litre turbocharged petrol Power: 296bhp Torque: 380Nm Max speed: 155mph 0-60mph: 5.5 seconds MPG (combined): 40.9 Emissions: 158g/km Mileage (to date): 2,301 THIS MONTH’S HIGHLIGHT Getting to grips with the feisty Spaniard on our favourite B-roads.

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The Cupra looks great on the outside but the interior lets it down a bit

– the same one found in various VW Group cars – that makes 296bhp after receiving a 10bhp bump earlier this year. Torque was also increased, from 350Nm to 380Nm, which is a hell of a lot for a front-wheel-drive car to handle. Fortunately, a clever differential manages the power effectively.

The Cupra looks fantastic from the outside, with its wicked alloy wheels and sharp styling, but once you drop into the driver’s seat the view is rather disappointing. The dashboard is dark and dull and doesn’t look like it belongs in a firecracker version of the VW Group’s supposedly fun and youth-orientated brand.

Fortunately, any yawns induced by the interior are put to bed the second you push the Cupra button. This stiffens the suspension, makes the steering more direct and the throttle more responsive. It immediately changes the car’s character, aided by a gruffer engine note.

The best way to describe charging the Leon Cupra down a back road is ‘frenetic’.

Engine response is lightning fast, and the power comes in one big lump that should leave the front wheels scrabbling for grip but, remarkably, doesn’t.

If you’re looking for poise and composure the feisty Seat probably won’t appeal, but so far we’ve loved how much fun it is, even at sane speeds.

Perhaps most impressive of all is that in its

most comfortable setting the Leon is a calm and relaxing little hatchback.

The infotainment system works well, there’s plenty of space in the cabin and you can achieve 35mpg on a long drive, which really pushes home the do-it-all ethos of a hot hatch.

Early impressions of the Seat Leon Cupra 300 have been largely positive, and we really can’t wait to put a few thousand miles on this super-fun hatchback.

OTHER CARS WE’RE DRIVING

Caterham Seven Mileage: 7,773 The Caterham is heading home this month – which is an extremely sad prospect indeed. We’ll be using it as much as possible before the keys get wrestled away from us, though!

Mazda MX5-RF On reflection, this roadster really is a snazzy car that can’t fail to put a smile on your dial.

by AIDAN RENNIE-JONES @AidanRJ

I

recently flew to Barcelona for a launch but had to stay at Heathrow the night before, so what better car in which to get there than our long-term Mazda MX5-RF? Ah, you’re thinking, but how did you get your luggage in?

The answer, surprisingly, is with ease. The boot swallowed up suitcase and holdall quite happily.

I hadn’t driven the Mazda for a while and getting back behind the wheel felt fantastic, with the whole experience instantly putting a smile on my face. Before heading off to Spain I had a couple of days to spend with the car and I enjoyed every single minute. I drove with the roof down whenever I could and despite it being a wee bit chilly outside, the heated seats and excellent heater soon had me nice and warm.

My fondness for this little gem of a car is continuing to grow. Every time you jump in and go, the journey becomes an occasion. Firstly, there’s the sound – a burbling twin exhaust erupts into life and doesn’t stop bellowing out a tuneful sound until you switch it off again. I love it – it’s just so characterful and bubbly. Everyone else still seems to love VN66 ZHZ too, and it’s not difficult to see why.

For a start, there’s how it looks. The standard MX5 is a very good-looking car, but adding the RF’s snazzy folding metal roof adds elegance. And when the roof’s down with the windows up it’s

almost like driving a Targa, so your hair is left intact – until you go on the motorway, when you end up with a bouffant hairstyle.

I drove the car through central London on a beautiful cold, sunny day – with the roof down, of course. As I snaked my way through the hubbub of the capital, I occasionally caught a glimpse of the car in a shop window and realised once again what a great-looking little vehicle it is. There are supercars that cost 10 times as much that aren’t even half as pretty as the Mazda. Its dainty proportions are spot on. Park it in Knightsbridge and it looks at home, too.

The main reason to love this car, however, is the way it drives and the way it makes you feel.

It’s just a charming sports car that puts a massive grin on your face. From the sharp steering to the excellent six-speed manual gearbox, every aspect of this car 12,500 miles on is superb. And that’s the biggest clue to people liking it: we’ve racked up that mileage in six months.

The Mazda isn’t perfect, though. Visibility with the roof up or down is terrible. You have to rely

Ford Edge

Land Rover Discovery

Mileage: 8,269

Mileage: 11,285

The Edge makes its presence known on the road thanks to its sheer size. However, its interior is leaving us cold – but at least it’s a comfortable place to be!

The Disco has been laid up a bit this month after a pesky screw got in the tyre and Kwik Fit was keen not to co-operate with a replacement, leaving Rebecca without a car for a couple of weeks.

Sitting pretty in Knightsbridge, with the added elegance courtesy of the folding roof

THE KNOWLEDGE Model: Mazda MX5-RF Price: £27,165 Engine: 2.0-litre petrol Power: 157bhp Torque: 200Nm Max speed: 134mph 0-60mph: 7.2 seconds Emissions: 138g/km MPG: 40.9 Mileage: 12,507 THIS MONTH’S HIGHLIGHT: The heated seats and cabin heater were a boon in the somewhat chilly weather. on the blind spot detection system. Without it, you’d be completely blind to any cars alongside you on the motorway – something that isn’t an issue in the standard roadster.

Another niggle is the lack of cabin space. Now, it’s fine for me, but taller colleagues or passengers over 5’10” have complained that they don’t fit.

Having said that, boot space isn’t too bad.

The niggles don’t mar the driving experience, though. It’s such an enjoyable car to drive and has so much character that I’d even go so far as to say it’s the best sports car under £30,000 on the market today. You get such a lot for your money too, especially in Sport Nav guise as with our car, which gets LED headlamps, Nappa leather seats, DAB radio, sat nav, cruise control, Bluetooth and a Bose sound system among its standard features.

Some of these are very expensive optional extras on other cars but our car cost £27,165. If you want one without all the kit, it costs from £25,695.

So, it’s good value for money, has a practical folding metal roof that doesn’t impact on boot space, feels excellent to drive and looks great.

For me, it’s still a winning package, and I think almost every person in the office will be reluctant to hand over the keys when Mazda finally comes to take it away. Long may the fun continue!

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The last word JA M E S B AG G OT T

Against our better judgment, we give our CEO the final say each month

Industry must be squeaky-clean if it wants our trust over autonomous cars

T

here’s another huge storm brewing over the battered and bruised German car industry. This time the thunderbolt isn’t an emissions scandal – although the fall-out from that has far from gone away. No, this time it’s a tale of collusion. One of secret talks between rival manufacturers, designed to help fix designs on common parts to lower prices for their own gain.

The pages of this latest scandal are slowly unfolding in Germany.

In July, it was reported that Volkswagen, Porsche and Audi, Daimler’s Mercedes and BMW may have used industry committee meetings to fix the size of tanks for AdBlue.

The EU has been investigating, and while it has provided little detail, it has said there are ‘concerns several German car manufacturers may have violated EU antitrust rules prohibiting cartels and restrictive business practice’. Now, in the latest twist, Daimler has claimed whistle blower status in the hope that it’ll avoid fines.

It’s yet another stain on a once-proud and illustrious car industry.

Let’s face it, German car manufacturers have been having it away for years. Their products have commanded huge premiums and the profits have been rolling in.

In these times of great success, it takes strong leadership not to turn greedy. Money corrupts decision-making, and when you’re swilling in huge, seemingly endless profits, the temptation to increase those further is hard to resist. Take the VW Group emissions scandal. It was a devious, heinous underhand act, but one it seems to have got away with incredibly lightly. Look at the halls of any motor show or the new product onslaught from Germany and it seems undisturbed by the most shocking scandal ever to befall the car industry.

Remember, this is a group that purposefully designed its cars to know when they were being emissions-tested. It manufactured a clever cheat in the cars’ brains that spotted when they were on a rolling road and fraudulently adjusted the emissions to suit. It was so clever, so advanced, it went unnoticed for years. Even engineers from rival manufacturers – people who pull these cars apart on a daily basis – couldn’t work out how they were managing it.

If it hadn’t been for humble researcher John German and his studies, the world would have still been ignorant to the scam today – and these cars that we thought were cleaner than they were would have continued to pollute more than they should.

I honestly think the VW Group has got away with the whole

sorry affair far too easily. Yes, heads have rolled (and so they should have) and yes, there have been fines and wrist-slapping. But buyers have already long forgotten the cheating, while owners of those cars affected are seemingly uninterested in getting them updated. And what incentive is there for governments to really punish these firms when so often they’re absolutely crucial to a country’s economy?

If these are the sorts of scandals being discovered now, what could happen when even bigger profits from life-changing autonomous cars are commonplace? What corners could be cut then to cheat systems? Would you trust a car manufacturer that’s been caught bending the truth, tricking the system in the past, with your life while you sit back and read the paper as its system drives for you? And what about all that data these firms will be gathering about your daily routine and your life? Your car will know where you go, when and for how long – and that’s just the start.

Car firms are already talking about ‘deep learning’.

That’s data on humungous scales, the likes of which few industries have ever captured before.

Would you trust that data with a firm that has knowingly put dirtier cars into the environment than it said it would, purely to bolster profits? Ethically, that was wrong but still got the go-ahead by someone, somewhere along the line. Just what could get the go-ahead in the future?

Now, more than ever before, as new technologies and innovations dramatically change the way we interact with our cars, we need to be able to trust the firms behind them. We need to know that while they might be big businesses interested in monumental profits, they’ve still got our interests at the forefront of their minds.

One manufacturer I spoke to recently admitted that one of the biggest barriers to consumers accepting autonomous driving was trust. They said passengers were constantly worried the systems were on and working and found it hard to relax as a result. But can you blame them? Is it any wonder they question the technology when they know what’s happened before? And to be honest, when I can’t get the automatic boot to shut properly every time on my longtermer, is it any wonder people worry?

In an age when cars will become less machine and more artificial intelligence-led companion, car firms need to not only be seen as whiter than white, they need to BE whiter than white. That change must start now. Scandals such as those that are all too frequently rocking this industry need to rapidly become a horrible and distant thing of the past.

‘It’s yet another stain on a once-proud and illustrious car industry.’

James Baggott is 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.

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