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Welcome.
CHRISTMAS is almost upon us, and at Car Dealer Magazine that always means the Used Car Awards are here. At the end of November, we went on our annual pilgrimage to The Brewery in London to reveal the identities of the greatest used car dealers in the industry. This year’s event was by far the best yet, with the partying continuing into the early hours of the morning. You can find out all about that in the coverage of the occasion, which begins on page 48. The used car industry is booming and it was fantastic to celebrate this with an incredible bunch of dealers. However, the economic climate for the new car market this year has been testing, to say the least, and this month has pushed things even further. You probably heard the chancellor deliver his Autumn Budget a few weeks ago and it’s been sending ripples through the industry. I’ve spent far too much time working out what Philip Hammond’s change to diesel tax actually means. Our initial thoughts were that it would be unenforceable – the result looks more like a blanket tax on all new diesel cars. Turn to my column on page 23 to find out exactly what it does mean, but I don’t think this really portrays how much effort we had to put in to get to the bottom of this. If we, whose job it is to explain things to the public, can’t understand or get hold of the information about what is being put in place, how can anyone else? How can the government not see that confusion stunts sales and that in this case consumers have no idea which way is up? If you’re feeling that November was another dreadful month for sales, we’ve got more on that too, further back in
the magazine. But the really big news for this edition is that James has opened a line of communication with Vauxhall once again, in a bid to find out why its sales are so bad. You can read all about that on page 122. I’m sure the main reason you’re here, however, is to read about that gorgeous car on the cover of the magazine. This month, features editor Jack has been testing out the BMW M5 beast and you can read all about it on page 36. Alongside that, we’ve got a flurry of other fantastic cars that you’ll be seeing on forecourts soon. There’s plenty more of the usual Car Dealer goodness, in what has turned out to be one of the biggest magazines of the year – but we always do like to head into the new year with a bang! I’m sure I’ll see you on the other side of the holiday season, but until then I hope you have a fantastic Christmas. We’ll be back in the new year with Automotive Influencers, some convertible supercars to show off, news from the new Alpine brand and the story of the day we sent an apprentice from Yorkshire to explore London. That’s without mentioning that we’ll only be five months away from CDX – I know, those seven months went quickly – and we’ll have plenty to tell you about the event. I hope you enjoy the issue!
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Just deserts Car Dealer founder James Baggott goes on a Moroccan adventure with BMW
Anger over Chancellor’s baffling diesel decision
ISSUE 118 I JANUARY 2018
Dashboard. Fury At Meddling Hammond Around the UK A Perfect Partnership LA Auto Show Rebecca Chaplin Big Mike Feedback Around The World So You Wanna Be A Car Dealer? Finance
06 12 16 20 23 25 26 28 30 32
Features. Marrakesh Express Used Car Awards
Data File. Car Dealer Club The Statistics Market Insight Auctions Taking Stock A Global View Real Deals
Forecourt.
36 38
BMW M5 Jaguar E-Pace
Suppliers Guide Key Notes with Traka James Baggott
44 48 104 106 109 110 111 112 113 116 118 122
Jon Reay puts the new Subaru Impreza through its paces
Simply red... a new daily driver for Car Dealer’s Darren Cassey
Our events... As voted for by dealers, Car Dealer Power is unique. Details of our 2017 winners are online at bit.ly/ winners-2017 – and watch this space for news of the 2018 event!
The Car Dealer Used Car Awards, sponsored by Black Horse, celebrate the used car industry. Turn to pages 48-97 for full coverage of the 2017 event.
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 pages 17-19. CarDealerMag.co.uk | 05
Dashboard. THE BIG STORY
Car bosses’ fury at meddling Hammond
Car manufacturer and dealer bosses have reacted with anger at the chancellor’s baffling Budget decision to tax new diesel cars higher. James Baggott reports on the ‘stupid decision’
W
hen the chancellor of the exchequer stepped up to the despatch box to deliver his Autumn Budget in the House of Commons last month, the car industry waited with bated breath. With falling new car sales to contend with and the impending doom from the Brexit fallout looming large, car manufacturer and dealer bosses were hoping for some good news. Sadly, any hopes of some respite failed to materialise. Instead, Philip Hammond delivered what many described as another nail in the coffin for diesel cars. Instead of incentivising buyers to partexchange their old, dirty, polluting diesels for a cleaner new model with some form of scrappage scheme, the chancellor seemingly did the exact opposite – taxing buyers of new diesel cars higher from April. It was a move that baffled the industry. Some car bosses we spoke to off the record failed to contain their anger at what they called a ‘stupid decision’, while on the record they voiced their concern at the message it sent out. Even the Society of Motor Manufacturers and Traders (SMMT) was broadsided by the announcement. On the day of the Budget, we called the press office but it was as much in the dark about the news as the media was. Eventually it released a statement from chief executive Mike Hawes that said what everyone in the industry was thinking: ‘This Budget will do nothing to remove the oldest, most-polluting vehicles from our roads in the coming years. ‘Our greatest concern is the continuing mixed messages around diesel, which will only deter and confuse the public further.’ Those mixed messages included the confusion 06 | CarDealerMag.co.uk
Chancellor Philip Hammond has given the diesel sector little to smile about
Clearing up customers’ credit file confusion
Ben Garside, p33
Dieselpowered Range Rovers and Peugeot 308s are among the new models targeted
‘I’m just completely perplexed. I don’t understand why the chancellor basically encouraged people to stay in older, more-polluting cars.’
‘This Budget will do nothing to remove the oldest, most-polluting vehicles from our roads in the coming years.’
‘It seems as if the government are now penalising the newest, cleanest vehicles on the road.’
Jaguar Land Rover managing director Jeremy Hicks
Society of Motor Manufacturers and Traders chief executive Mike Hawes
Peugeot UK managing director David Peel
surrounding the chancellor’s tax hike. Media outlets clamoured to unravel the detail – what wasn’t obvious was which diesel cars would face the tax hike and which wouldn’t. As the dust settled, it became clear that pretty much every diesel car on sale would face some tax hike from April 1, with some buyers facing paying up to £500 more in the first year of ownership. The chancellor said the proceeds from the rise – thought to be netting the Treasury around £220m – would be added to a ‘Clean Air Fund’ to tackle pollution. In his Budget statement, Hammond said: ‘From April 2018, the first-year VED rate for diesel cars that don’t meet the latest standards will go up by one band and the existing diesel supplement on company car tax will increase by one percentage point.’ Putting the onus on manufacturers to bring low-emission technology to market quickly, he added: ‘Drivers buying a new car will be able
to avoid this charge as soon as manufacturers bring forward the next-generation cleaner diesels that we all want to see.’ It was this latter line that confused the industry – it was the first they’d heard of a need to bring forward these so-called cleaner diesels, with most car firms currently focused on the already greener Euro 6 engines. The government is using the new realworld driving emission (RDE) test’s ‘step two’ regulations to designate which cars will fall into a higher tax bracket – those that emit less than 80g/km of NOx will not be charged more. That means diesel cars with CO2 emissions between 91 and 100g/km will cost £140 for the first year of road tax, up from £120, while those emitting between 131 and 150g/km will cost £500 – a massive hike from £200. Hawes said: ‘Manufacturers are investing heavily in the latest low-emission technology. However, it’s unrealistic to think that we can
fast-track the introduction of the next generation of clean diesel technology, which takes years to develop, in just four months.’ HM Revenue & Customs cut through the confusion and said if motorists buy a typical diesel Ford Focus they’ll pay an extra £20 more to tax it in the first 12 months. On the flip side, Land Rover Discovery buyers will pay £400 more. Understandably, Jaguar Land Rover managing director Jeremy Hicks wasn’t particularly pleased with the announcement – especially considering some 80 per cent of Land Rovers are currently sold with a diesel engine. ‘I’m just completely perplexed,’ he said, in an exclusive interview with Car Dealer. ‘I don’t understand why the chancellor basically encouraged people to stay in older, more polluting cars if the strategy is to get cleaner air in cities. That’s what’s left me confused, because surely we should be encouraging people into the cleanest CarDealerMag.co.uk | 07
Dashboard. car available, and those have to be, by definition, the newer, cleaner, petrol and diesel vehicles.’ Hicks pointed out that clean air solutions needed to focus on other big polluters too – the marine industry pumps out huge amounts of CO2, as do trucks, buses and taxis. Fellow car industry bosses were equally baffled by the announcement – with some laying part of the blame at the mainstream media’s door too. ‘I’ll be honest – the decision surprised me,’ said Hyundai UK CEO Tony Whitehorn. ‘I think the media have not – overall – helped the position, by virtue of saying diesels are bad. Diesels aren’t bad at all. Their particulates are pretty similar to a petrol vehicle on a Euro 6. A Euro 6 is actually very good, and it has a better CO2 than a petrol. ‘I was disappointed because it fuels the incorrect assumption that diesels are bad. If customers are driving a Euro 3 diesel now, it has stopped them from buying a Euro 6. For the first year of registration they’re going to have to pay more money – so why would they want to go and change immediately into a cleaner vehicle? ‘It was a surprising decision, and from my perspective, it wasn’t the right one.’ Hyundai was by far the biggest beneficiary of the last scrappage scheme, introduced by the government to bolster sales in 2008. However, Whitehorn doesn’t think we’ll see another one targeted at older diesel cars any time soon. Currently, 38 per cent of his firm’s sales are diesel cars. ‘All the manufacturers have already introduced their own schemes,’ he explained. What he wants now is some of the confusion cleared up. ‘I want the government to try to use the resources that they have to give us more clarity and certainty. I have to say, what was announced in the Budget has not done that.’ Peugeot UK managing director David Peel – who called for a national diesel scrappage scheme in Car Dealer a year ago – said he was ‘disappointed’ with the chancellor’s Budget. ‘I’m surprised a diesel scrappage scheme wasn’t the first port of call,’ he said. ‘It seems as if the government are now penalising the newest, cleanest vehicles on the road. For example, we have a Blue HDi diesel with 79g of CO2, which is one of the most efficient vehicles on the market today. It seems a bit strange that it will get an enhanced tax when some of the older vehicles on the road that are dirtier, won’t.’ Currently 35 per cent of the firm’s car sales are diesel models, so does Peel echo his fellow car manufacturer bosses’ views that the chancellor is sending out the wrong message? ‘Yeah,’ he said. ‘All I want is some clarity and honesty. We all know that the latest diesels are 08 | CarDealerMag.co.uk
– when it comes to CO2 – very efficient. I think the government over the last year or two have certainly confused customers – we’ve gone from CO2 to NOx and back to CO2 – and I think they are finding it very difficult.’ Dealers are equally annoyed with the negative message that the Budget sent out to potential diesel car buyers. Marshall Motor Group chief executive Daksh Gupta – whose group sells some 50,000 cars a year – said the mixed messages the public had been fed over the years had compounded the problem.
‘I think the whole handling of diesel hasn’t been great,’ he said. He explained that diesel sales had grown from around 15 per cent in 2001 to more than 50 per cent today, thanks largely to government incentives that encouraged consumers to buy them. That message has now reversed, and it’s buyers who are suffering. He added: ‘I think the frustration I have is that the people who are ultimately going to lose here are the consumers, and that to me doesn’t necessarily feel fair. I think the government needs
‘Governments are appalling at interfering in things they know very little about with a high level of unintended consequences.’ Robert Forrester, Vertu Motors CEO
Drivers of the cleanest diesel versions of cars such as the Dacia Duster and Hyundai i30 will be among those penalised
‘I’m quite angry. The point is really that this diesel-phobia is irrational.’
‘I think the frustration I have is that the people who are ultimately going to lose here are the consumers.’
‘It was a surprising decision, and from my perspective, it wasn’t the right one.’
Renault Dacia UK managing director Vincent Tourette
Marshall Motor Group chief executive Daksh Gupta
Hyundai UK chief executive Tony Whitehorn
diesels? ‘No, not at all,’ he told Car Dealer. ‘Diesel will have a future. If you want to buy a car and do plenty of motorway miles, you will buy a diesel. There will be somebody – I hope lots of people – who will be buying a diesel this afternoon in our dealerships, because it is the right decision. ‘People don’t actually take that much notice of the government.’ Paul Hendy, chief executive of Hendy, agreed that the confusion was damaging sales. ‘Euro 6 engines are as clean, if not cleaner, than some of the cars on the road today,’ he said. ‘I just think this misinformation isn’t helpful and it needs to be tidied up. It is causing a problem and it’s not helping diesel sales.’ Vincent Tourette, Renault Dacia UK managing director, said he believed the decision would simply mean buyers will be put off buying new. ‘I’m quite angry,’ he told Car Dealer. ‘The point is really that this diesel-phobia is irrational. This kind of announcement is just making the confusion bigger. All this will do is keep the diesel engines on the road longer and mean they’re not replaced with newer technologies that are much cleaner, have low levels of CO2 and are matching the strict current regulations. ‘I don’t really see the point. I don’t see the benefit in terms of contribution to Budget either. It’s just confusing the market even further and putting all the industry in trouble.’ Car Dealer Magazine contacted the Treasury
for a comment on its baffling decision and its press office called us back to clarify our questions. When we laid out the industry’s thoughts in stark detail on the phone, the spokeswoman asked: ‘Is that really what the industry thinks?’ It’s staggering that the very government department behind the decision doesn’t even know what car industry leaders are thinking. Perhaps it should have asked for advice first? Eventually we received a bland statement from the Treasury that said: ‘We want to strike the right balance by supporting motorists and encouraging cleaner transport choices. ‘At Budget, we froze fuel duty for the eighth year running, which will save people £160 a year on average. And the VED supplement is a one-off cost, meaning drivers of the most popular cars will pay just £20 in their first year.’ Sort of misses the point doesn’t it? Whatever your political preferences, it’s hard to argue that this decision was anything but wrong. When you’re looking to improve air quality, giving drivers of old, polluting cars any more reasons not to change is frankly bonkers. ‘The motor industry needs to be part of the solution,’ concluded JLR boss Hicks. ‘People want mobility, and for us to invest in new propulsion methods, like electric and PHEVs, we need to thrive and be successful. ‘Decisions like this do not help.’ [CD] Rebecca Chaplin, p23
to do more in terms of educating customers, and I think it should have been gradual rather than what seems to have happened this year with the media frenzy.’ Victoria Finn, Pendragon’s marketing and communications director, said she was frustrated with the mixed messages. ‘We are finding the dieselgate situation really challenging,’ she told Car Dealer. ‘People are confused as more complexity comes into defining what a clean diesel is, and it is not helping. Buyers are unclear as to what the engine choice should be for their car.’ Robert Forrester, Vertu Motors CEO, would prefer the government did as little as possible when it came to interfering with the car industry. ‘Governments are appalling at interfering in things they know very little about with a high level of unintended consequences,’ he said. ‘This will be smack bang in the middle of that. They shouldn’t be messing about with things they don’t understand. ‘We’ve got to remember, as a society, that people rely on motor vehicles. We’re at risk of confusing people and creating a lot of uncertainty, when actually modern cars, petrol or diesel, are good for the environment relative to petrol or diesel cars built in previous generations. I don’t think the government understands that.’ So does Forrester think the chancellor’s announcement was the final nail in the coffin for
CarDealerMag.co.uk | 09
Dashboard.
The Omagh branch of Pat Kirk Ltd Picture courtesy of Pat Kirk Ltd
TRAGEDY
Dealership group pays tribute to mechanic killed in accident
A
dealership group in Northern Ireland has paid tribute to one of its master technicians after he was killed when a car he was working on at his grandmother’s home fell on him. Father-of-one Richard Harron, right, who was an employee of Pat Kirk Ltd and a graduate of the Nissan Advanced Apprenticeship Programme, had been busy with
the vehicle in Sion Mills, County Tyrone, on November 13 when the tragic accident happened. He was discovered by his father, but the 26-year-old died despite intensive efforts by paramedics. His funeral was held on November 17 and the Omagh branch, where he worked, closed for the day out of respect. In a statement, the company said: ‘It is with deepest regret Pat
Kirk Ltd has lost a much-loved and esteemed member of staff, namely Richard Harron. He was loyal, a person of great integrity, somebody who was extremely approachable and would help anybody without seeking any kudos for doing so. ‘Richard, who was an integral part of our company, will be a major loss, and the nature of his death has left a void and a numbness in all of our
employees.’ Managing director Peter McDermott also told Car Dealer Magazine: ‘Richard was very highly regarded in the business and was a very understated guy – he would just bundle his certificates away in a drawer. He was as happy to work on a tractor as he was on a Nissan Leaf.’ A decision on an inquest will be made once the coroner has received the post-mortem report.
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SUNDERLAND: A new Kia and Mazda dealership in Sunderland has resulted in dedicated Jennings Motor Group employee James Chorlton being transferred and made general sales manager – his third promotion within the company. Chorlton, 52, started at Jennings as a sales executive in 2000 and was first promoted to sales controller/business manager. He has moved across from the group’s existing Mazda dealership in Middlesbrough, where he was franchise manager for 10 years, to the recently opened Kia and Mazda showroom. His responsibilities now include the day-to-day running of the dealership plus achieving monthly and quarterly sales objectives. He said: ‘I’m delighted to have been given another opportunity to further progress my career within the company.’
It’s a promotion hat trick for James!
STIRLING: Eastern Western Motor Group has acquired Phoenix Honda in Stirling from the Phoenix Car Company. The new addition, for an undisclosed sum, expands the group’s representation of the Honda brand to three dealerships, with the sister sites in Edinburgh and Fife. The dealership will be rebranded as Western Honda, with work set to start imminently on a new purpose-built showroom that’s expected to open next summer. Keith Duncan, managing director at Western Honda, said: ‘This acquisition is an extremely exciting time for us at Western Honda, not only helping to further cement our relationship with the Honda franchise, but also assisting in our strategy to grow and develop with our existing brand partners in new geographical territories.’
A Stirling bit of business for Western Honda
What’s been hitting the headlines on the home front? Here’s a round-up of stories
LIVERPOOL: A former serviceman is starting a new career as a technician in the motor sector, thanks to a Ministry of Defence initiative. Dominic Sherwin has joined Jardine Motors Group’s Liverpool Audi dealership via the MoD’s Career Transition Partnership, which helps military personnel offer their unique and transferable skills to UK employers. With more than 20 years’ military experience as a mechanical fitter for the Royal Engineers, he is now applying the technical skills he developed there to ensure that the Audi cars he is responsible for at the Derby Road dealership receive the highest standard of technical support as they undergo servicing or maintenance. ‘I am delighted to have joined Jardine Motors Group’s Audi dealership in Liverpool,’ he said.
Ex-serviceman engineers a bright future
COUNTY DURHAM: Bristol Street Motors Hyundai Peterlee is celebrating a £170,000 refurbishment by supporting local football team Seaham Red Star. The adult team will wear tracksuits with the dealership’s logo as part of the agreement, which comes just after the North West Industrial Estate showroom completed an extensive refurbishment. Much of the dealership’s improvements have focused on technology to improve the customer experience, including the installation of hybrid/electric vehicle charging points. General manager Paul Walton said: ‘It’s fantastic to kick off our new look by supporting a local football team. A number of our colleagues are Red Star fans and were really excited to find out we will now be supporting the club.’
Kicking off new look with team sponsorship
News from around the UK
Dashboard.
CarDealerMag.co.uk | 13
Jimmy Choo chosen for Rolls-Royce display LONDON: Rolls-Royce’s flagship showroom in the heart of Mayfair – Rolls-Royce Motor Cars London – has joined forces with iconic fashion brand Jimmy Choo for Christmas 2017 to create a stunning window display, adding a unique touch of glitz and glamour to Berkeley Square. Off the back of Jimmy Choo’s 2018 campaign Shimmer in the Dark, the fashion brand has assembled shoes and more of its branded products pouring out of the boot of a RollsRoyce Wraith Black Badge, together with sparkling disco balls. Shimmer in the Dark is all about making fashion play with the light, and the two luxury superpowers say the Christmas display at Rolls-Royce Motor Cars London aims to bring the showroom window to life in style.
Partridge and BCA partner up
HAMPSHIRE: Partridge of Hampshire has partnered with BCA in an exclusive remarketing deal including the adoption of BCA Dealer Pro. Stock from the family-run, independent retailer, which represents BMW and Mini in Chandlers Ford, will be sold in weekly sales at BCA Paddock Wood, with 15 to 20 vehicles offered every Tuesday. All cars will be prepared to a high standard, and eligible vehicles will be offered under the BCA Assured scheme. Partridge of Hampshire is also adopting BCA’s Dealer Pro system, the cloud-based car appraisal tool that uses an iPad-ready application to enable dealers to efficiently manage the part-exchange process and maintain their inventory at the touch of a screen.
CHESHIRE: McLaren Manchester is on the move from its Knutsford base to a newly refurbished, state-of-the-art showroom in Wilmslow. The 18,000 sq ft facility, which was due to open its doors this month, will feature the latest visual identity of the iconic British sports and supercar manufacturer. It will provide a wide selection of new and McLaren Qualified vehicles, including the 720S and 570S Spider. Customers will be able to specify their vehicles there and benefit from improved accessibility. The dealership will continue to be operated by Sytner Group. David Gilbert, McLaren Automotive’s managing director for Europe, said: ‘Our retailer network is renowned for its impeccable customer service, which will be further enhanced by this fantastic location.’
McLaren Manchester moves house
GWYNEDD: A car dealership director has been accused of defrauding customers of £1 million at his showroom in Wales. According to the Daily Post, Gwyn Merion Roberts, of Dolgoed, Llandudno Junction, was a director at highend dealership Menai Vehicle Solutions in Bangor. He appeared at Llandudno Magistrates’ Court on November 22, charged with 24 counts of fraud and one count of carrying out a business with intent to defraud. The 48-year-old didn’t enter any pleas and was granted bail to appear at Caernarfon Crown Court on December 18. All the alleged offences took place in 2015. Menai Vehicle Solutions subsequently ceased trading.
Dealership director charged with £1m fraud
WEST SUSSEX: Hendy Group has expanded its operations in Crawley with a new Ford car showroom. Hendy chief executive Paul Hendy said he was delighted to open the new dealership at Manor Royal, which also offers full service facilities. ‘Crawley is an important and strong market for Hendy and we are thrilled to be investing here in the town,’ he said. ‘This great location is ideal for customers and means that we can provide everyone with the very best facilities.’ As part of the relaunch of Ford in Crawley a new management team has been appointed, with Wayne Backshall now new car sales manager. Chris Bacon is the used car sales manager and David Offer is the service manager.
Hendy expands with new Ford car showroom
OXFORDSHIRE: Bristol Street Motors Peugeot Banbury is sending a couple on the holiday of a lifetime, thanks to a competition at the dealership. After buying a Peugeot 108 at a casino event there, Shirley Warrington was entered into a draw to win the top prize of £3,000 in holiday vouchers. For every new car sold at the event, customers could spin the roulette wheel for a chance to win a series of prizes. Shirley, from Mickleton, near Chipping Campden, is using the vouchers to book a dream holiday to Las Vegas, the Grand Canyon and San Francisco with husband Brian. Vegas was a favourite holiday destination of her mother, who died last year, and Shirley said: ‘Thanks to Bristol Street Motors, I’m going to be able to see what she loved about it so much, and I’ll be doing it in style.’
Off on a poignant holiday, thanks to dealership
Dashboard. INTERIM RESULTS
SOCIAL MEDIA
Motorpoint’s pre-tax profit shoots up by 304 per cent
M
otorpoint has reported half-year pre-tax profits of £9.7 million – an increase of 304 per cent against the first half’s £2.4 million. In the company’s unaudited interim results for the six months to the end of September, which also confirmed expectations that profit before tax and exceptional items would go up by 64 per cent to £10.5 million, it said revenue had risen by 18 per cent to £483.2 million. Underlying earnings per share increased 62.3 per cent to 8.6p and cash flow from operations increased to £20.5 million. Chief executive Mark Carpenter,
Facebook seen as favoured platform
pictured, said: ‘The group has delivered a strong first half of the financial year with significant increases across all key performance indicators. The new sites that have opened in the last two years continue to deliver an improving performance as they gain awareness in their local markets and increase our share in the nearly-new market. ‘The second half has started well and the group’s resilient business model and focus on delivering choice, value and service leaves it ideally positioned to continue its market share growth of nearly new car sales. ‘The board is therefore confident of delivering full-year results in line
with market expectations.’ The UK’s largest independent vehicle retailer also announced the launch of a share buyback programme of up to £10 million to reduce its share capital and return funds to shareholders who sell their shares. Any repurchased shares will be cancelled. The programme is expected to end by June 30, 2018. Carpenter said: ‘This has been possible due to the group’s robust balance sheet position and cashgenerative business model.’ The group’s stocking facilities were extended by £5 million to £70 million in September to support the growth of the business.
FACEBOOK is the most important social media channel for dealers to engage with customers, according to new research. A poll of 1,000 people for Marketing Delivery found that more than a third (37.6 per cent) of 18- to 54-yearolds cited Facebook as their preferred social network on which to follow or ‘like’ a car dealer – almost five times more than for any other social platform. The UK-wide consumer research was commissioned to assess the significance of different social platforms for the motor retail industry. Jeremy Evans, managing director of Marketing Delivery, said: ‘Our research highlights some important pointers. ‘The overwhelming preference for Facebook in some UK regions makes it clear that many dealers are missing a trick when it comes to targeting local prospects.’
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Email automotive@traka.com or call 0845 225 2910 traka-automotive.com 14 | CarDealerMag.co.uk
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15/12/2016 10:04
Dealer Funding | Flexible stocking finance Insight | Access to exclusive data to boost profits Support | Dedicated Account Manager closemotorfinance.co.uk/dealer-funding
Motor Finance
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Dashboard.
How did the new car market perform in November?
SMMT figures: p106
Greenyer
A PERFECT PARTNERSHIP
Confusion provides dealers with a fabulous opportunity
LYNK & CO
01 SUV is fastest-selling car... in the world LYNK & Co’s 01 SUV has become the world’s fastest-selling car after the company took 6,000 orders – in just 137 seconds. The connected and shareable mobility brand, owned by China-based Zhejiang Geely Holding Group but designed and engineered in Sweden, announced the start of sales just one year after the company’s birth. With the three-day advance sales event selling out in just two minutes and 17 seconds, the Lynk & Co 01 has become the fastest-selling car in the
world, ahead of the official start of volume sales. Alain Visser, senior vice-president of Lynk & Co, said: ‘We are immensely proud of the speed and scale of our launch. We promised to shake things up, and now the journey really begins. ‘We announced the birth of Lynk & Co almost exactly one year ago. Now, just 12 months later, we start sales of our connected and shareable 01 SUV in record fashion. Whether buyers choose to join online or in store, we promise a unique and enjoyable experience.’
FINANCIAL CONDUCT AUTHORITY
City watchdog begins investigation into car finance firm Moneybarn
T
he City watchdog has launched an investigation into Hampshire-based car loans firm Moneybarn. The Financial Conduct Authority (FCA) will focus on processes applied to customer affordability assessments for car finance and the treatment of consumers in financial difficulties. In response, the company, which is controlled by the troubled sub-prime lender Provident Financial, said: ‘Provident Financial Group aims to act responsibly in all its relationships, and to play a positive role in the communities it serves. ‘The company will work collaboratively with the FCA to investigate the remaining concerns and resolve any outstanding related issues as soon as practicable.’ The FCA authorised Moneybarn to conduct consumer credit activities last year, but since then it has encouraged it to make a number of improvements, 16 | CarDealerMag.co.uk
including to the way it deals with future loan terminations. News of the investigation follows a brutal few months for Provident, which has issued two profit warnings, seen its shares tank by almost 80 per cent since May and whose executive chairman Manjit Wolstenholme died recently. In addition, chief executive Peter Cook quit in August. In October, the firm revealed that it would book heavy annual losses at its consumer credit business, but claimed that it was making progress with a turnaround plan. Shares in Provident fell by 12 per cent to 771p when the probe was announced on December 5 but had risen again to 794p when Car Dealer went to print. The FCA is currently carrying out a review of car finance as a whole, with some of its conclusions to be published early in 2018. More finance news, p32-35
T
he past year has been an interesting one for the retail motor trade. It has presented a few more challenges than might have been expected. Probably one of the most contentious issues was the ‘demonisation of diesel’ by the government and the media. At the beginning of November, the Society of Motor Manufacturers and Traders reported that sales of new diesels had fallen by nearly a third compared with 2016. However, the used market has been more resilient, with sales of used diesel cars growing by 4.2 per cent in the third quarter of 2017 compared with the same period in 2016. Data released by Auto Trader back in October showed that the average price of a used diesel car rose by two per cent year-on-year. Auto Trader searches in September further reinforced sustained consumer demand for diesel, outperforming all other fuel types at 55 per cent. Our own data at Raphael Finance reflects this trend. In November 2017, the proportion of diesel cars we financed increased to 60 per cent compared with 52 per cent in November 2016. I believe the resilience of diesel in the used car market can be put down to a number of factors. Of course, the widespread negative media coverage about diesel will have put pressure on motor retailers to offer great deals to help shift the diesel vehicles already on their forecourts. But there’s also the economic arguments that still make diesel appealing for the drivers doing relatively high mileages on a regular basis. Whilst the price of diesel fuel remains higher than petrol, it is not a significant enough difference yet to create the sea change that government and environmental groups want. So where does that put the motor retail trade now? The Auto Trader report also highlighted that car buyers were ‘confused’ by the on-going debate around diesel. This, I think, provides motor dealers with a perfect opportunity. Indeed, the Vehicle Remarketing Association recently called for used car buyers to be better informed about diesels. Helping customers understand the environmental issues around diesel is, of course, important. Focusing on the economic benefits is also crucial. After all, most car buyers are looking for a vehicle that doesn’t just fit their financial needs in terms of the monthly finance, but one that isn’t going to stretch them in terms of fuel and upkeep as well. Helping motorists understand the pros and cons of all fuel types – including hybrid and electric – will help motor dealers create a customer relationship that is there for the long term.
‘Focusing on the economic benefits of diesel is crucial.’
Darren Greenyer is deputy head of lending at Raphael Finance
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 | 17
CDX 2018 HEADLINE PARTNERS
Our fab four are getting ready to demonstrate how they can help you
Real, usable, practical advice.... and new this year, The Employment Zone
Why 2018 will be a pivotal year in the development of online motor retailing
ith only five months to go to CDX 2018, automotive recruitment consultancy Perfect Placement is in full planning mode. We managed to grab some time with the company’s director of business development, Jimi Matthews, pictured. ‘Never before have we been so actively involved in an event of this size, and never before have we had so much to organise,’ Matthews told us. ‘It’s going to be a frantic five months of getting things done!’ Perfect Placement, five-time winner of the Car Dealer Power Award for Recruitment Agency of the Year, is hosting this year’s Employment Zone – a 150 square metre area dedicated to all things relating to employment. With advice, hints and tips, along with expert guidance from some of the industry’s leading authorities, this area will be dedicated to maximising the largest asset your business has – its staff! Matthews also told us about the two workshops he’ll be hosting at the event, saying: ‘I’ll be discussing targeting, retention issues and how to best divest the human capital you have in your business.’ Perfect Placement is certainly no stranger to the CDX format, but as an official partner this year, it has committed to helping achieve the dream of the biggest, best and most engaging motor industry expo the UK has ever seen. And it certainly looks as though the dream is becoming a reality. Matthews explained that Perfect Placement will be aiming to increase the value for delegates this year by ‘giving real, usable and practical advice to businesses, the source of which is 14 years’ experience of working with them and businesses like them. ‘We hope that by putting staffing and employment in such a large space at CDX, and by offering so much, such as free, impartial and real-world intelligence to motor industry businesses, we can benefit all who come to the Employment Zone and CDX 2018 – we can’t wait!’
he online vehicle retail solution developer iVendi is proud to be a headline partner of CDX18 – and the team are delighted that this year, the expo will take place over the course of two days – May 21 and 22 – at Manchester Central Convention Complex. Sponsoring CDX is a great way for companies such as iVendi to get their messages across to the right audience and showcase new products they’ve been working on. We caught up with James Tew, pictured, the firm’s chief executive, to ask him if he could reveal anything he and his team have got in store for this year’s lucky delegates. ‘We see 2018 as a key year in the development of online motor retailing,’ said Tew. ‘CDX will be an important shop window for us to talk to dealers about the latest generation of our core platform, which delivers a world-first, complete plug-in, end-to-end online motor finance solution. ‘As a result, we’ll have a bigger and better presence at CDX than ever before, giving us the time, space and facilities to talk about the technical challenges that dealers face online – from how to handle part-exchanges to how to maximise digital sales using the latest techniques and technology.’ We also asked Tew what it means to iVendi to have CDX 2018 in Manchester and why he thinks it will be a good location for the expo. ‘Having CDX 2018 in Manchester is a real bonus for us, being where one of our two office centres is based, and we are looking forward to using the opportunity to allow some of our developers to engage directly with customers, as well as showing some dealer friends around one of Europe’s great cities,’ he said. As a longer event with more facilities in the heart of a great metropolis, CDX 2018 will be bigger and better than ever before. Catch up with iVendi and dozens of other great companies and organisations at CDX18.
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Next month we’ll be chatting to the teams at WMS Group and GardX to find out about their plans
In association with
18 | CarDealerMag.co.uk
COUNTDOWN BEGINS
We’re all set to take Manchester by storm!
M
anchester here we come! As regular Car Dealer readers will know (and if you’re not a regular reader why not ? ! ), the biggest and best expo in the motor industry – CDX – will be held over the course of two days next year at the Manchester Central Convention Complex, pictured above. Taking place on May 21 and 22, it will be a simply unmissable two days and we’ve created stellar line-ups to cover the most important issues facing car dealers today. Over the years, Car Dealer Magazine has seen dramatic year-on-year growth in the number of stands at CDX, the amount of space it’s occupied and the number of people attending, but in 2018 it’ll be even bigger and better than ever before. With two days packed with exciting and educational things to see and do, it was only fitting that we partnered up with some of the
by REBECCA CHAPLIN @believebecca
most innovative and best-known brands around. Our headline partners for CDX18 are GardX, iVendi, Perfect Placement and WMS Group. On the left you can find out a little about what iVendi and Perfect Placement will be offering – next month we’ll be chatting to the guys at GardX and WMS Group. CDX 2018 ticketing is now officially open for anyone wanting to book tickets. It’s as simple as heading over to cardealerexpo.co.uk/ticketing, creating an account and then you’ll be able to download your free ticket from there any time before the event. Free standard tickets will give you access to the show on both days, as well as all of our excellent
workshops, seminars and the Car Dealer Live Stage programme. Your chance to be a CDX VIP To give delegates more flexibility, we’re introducing a limited-edition VIP ticket sponsored by iVendi, which is available to buy from the CDX website now. This will give you fast-track entry to the show on both days, guaranteed parking, access to the VIP Business Lounge, where there will be complimentary refreshments and food served all day (including breakfast and a buffet lunch), exclusive free VIP wi-fi and cloakroom, VIP front-row seating in workshops, an exclusive networking session with a speaker and a VIP book plus show guide. For those choosing this package, we have also taken rooms at one of Manchester’s best hotels and VIPs will be able to book at a special rate.
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 | 19
Dashboard.
Get Simon Davis’ verdict on the new Kia Stinger
First Drive: p42
MOTOR SHOW REVEALS
Top six cars from the 2017 LA Auto Show
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he end of the year is upon us and for the motoring world, this means one last motoring show — the LA Auto Show. Running from December 1-10 this year, the exhibition based on the west coast of the United States is a great opportunity for manufacturers
globally to showcase their upcoming machinery for the year ahead. We’ve picked out six of the best cars revealed to the press ahead of the public opening of the event.
Nissan Kicks America’s replacement for the Nissan Juke is this (above) – the Kicks. It has a more contemporary look than the quirky Juke – the Kicks has Nissan’s trademark ‘V-Motion’ grille, boomerang front and rear lights, and a ‘floating roof’. There’s no word on whether the Kicks will come to the UK, but it’s set to retail in the USA for ‘well under $19,000’ (around £14,000).
Jeep Wrangler While the new Wrangler may not look too different from the old one (which is certainly a good thing), under the skin it has received a raft of changes to bring it up to speed with competitors. Safety aids such as blind-spot monitoring and rear cross-traffic detection have been added, as has a large Uconnect touchscreen infotainment system that incorporates Apple CarPlay and Android Auto.
Range Rover SVAutobiography
Mercedes-Benz CLS Mercedes-Benz pulled the covers off its thirdgeneration CLS. The four-door coupe features a large grille, muscular wheel arches, angled headlights and a long, sloped roofline. There’s a new engine for the brand with the CLS, too. It’s a six-cylinder, 3.0-litre petrol unit coupled to a small electric motor to create a mild hybrid set-up.
If the Range Rover wasn’t already luxurious enough, buyers can now get their hands on an even plusher version – the Range Rover SVAutobiography. Hand-finished by in-house customisation department Special Vehicle Operations, the flagship SUV features Executive Class leather seats, a wine fridge, wifi connectivity and an impressive multimedia system. There’s even a button that rear-seat passengers can press to soft-close the doors.
BMW i8 Roadster
Chevrolet Corvette ZR1
Munich’s hybrid sports car has been with us since 2014 but has only ever been offered as a hard top. That’s all changed now, though, as BMW pulled the covers off the convertible i8 Roadster at the LA Auto Show. Along with a folding fabric roof, which can go from open to closed in 15 seconds, the German manufacturer has also worked to improve the i8’s electric range. In Roadster guise, it can travel 33 miles, while the updated Coupe manages 34 on a single charge.
America’s iconic sports car has just been given its most brutal version yet — introducing the new Chevrolet Corvette ZR1. Straight away, it separates itself from the rest of the current C7 ’vette range with aggressive styling tweaks including a wider carbon-fibre bodykit, an engine bulge on the bonnet and a huge rear wing to keep the 745bhp monster planted to the road.
20 | CarDealerMag.co.uk
EIGHT MILLION OPPORTUNITIES Becoming an RAC Approved Dealer gives you access to over eight million members, across the UK. With the support of one of the UK’s most respected motoring brands, you’re perfectly placed to drive more customers to your dealership, and grow your business. Ready to get started? Call us today and benefit from RAC Approved status.
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Call: Email: dealernetwork@rac.co.uk Visit: rac.co.uk/getapproved
CarDealerMag.co.uk | 21
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As recommended by former Stig, Ben Collins
Safe and Sound includes: 60 point safety inspection Six month Ultimate warranty Six month UK breakdown cover Full provenance check Mileage verification Buy-back promise For the Ultimate used car scheme, there can only be one choice. Visit SafeandSound.co.uk or call 01844 293810 to find out more.
Request your free, no-obligation dealer pack today at www.WMSGroupUK.com or call 01844 293 817. 22 | CarDealerMag.co.uk
From the WMS Group
*You will receive your jacket after your first five x 6 month warranty and recovery packages have been issued with no further obligation.
Behind the scenes REBECCA CHAPLIN
Blackball Media’s head of editorial is never afraid to tell it like it is
Confusion and complication that will only serve to harm our industry
T
he dark arts of politics often mean that our glorious leaders can pull the wool over the general public’s eyes, using simple misdirection to make bad equal good. In the case of Philip Hammond’s Budget, I’m not sure anyone in the cabinet had the foggiest idea what the latest clean air plans actually meant. I’ve been racking my brain over this more than most would probably care to, but in this case bad doesn’t equal good, it doesn’t add up – pure and simple. As you’ll have read in James Baggott’s piece a little earlier in the magazine, the automotive industry was shocked, and as we heard the news, we dived into what this political fluff actually meant. Calls to the SMMT, then the Treasury, signalled no-one really understood how this could be put into action because they didn’t understand how the new standard they are planning to use actually works in practice. As Hammond said, they would be using the latest emission standards to determine whether new diesels needed to be moved up a tax band for the first year. The Treasury confirmed this meant RDE2. RDE stands for Real World Driving Emissions, of which there are two standards for compliance. One came into play this September, but cars aren’t expected to meet this until September 2019 unless they’re brand new and going for Type Approval. The second, which we’re talking about, is three years away and is even more stringent. Car Dealer Magazine conducted an investigation to determine which cars currently meet the RDE2 standard, as currently only carmakers know how their vehicles score. Of the 16 brands that responded, 11 confirmed that none of their cars currently meets the standard and five said they didn’t know. However, looking at the cars we know won’t comply suggests all new diesels will be affected in April. So was this a very clever way of disguising the fact that all new diesels are being slapped with an additional cost? Speaking with HM Revenue & Customs, it became clear that there’s a standard line being issued that tallies with the Treasury but there remains a lack of understanding if you question them a little more closely. Its advice was that the legislation still needs to be passed and
guidance will be revealed over the coming months. The Treasury was then able to confirm that manufacturers only need to tell it whether their cars are below the certified level, explaining: ‘What we’re asking is for which vehicles are certified as meeting [the standard], rather than what any specific test result produces, ie, the manufacturer certifies that in any validly conducted test, the NOx value will be below the certified level.’ Again, it all appears to be a very complicated way of saying all new diesels will be taxed higher in the first year and it’ll be interesting to see if manufacturers can speed up their research and development so that the new standard can be met. I appreciate that this will force manufacturers to work faster to meet standards and it’ll fill the coffers of the new Clean Air Fund. In practice it’ll more than likely push buyers towards petrol cars that aren’t necessarily right for them and reinforce the idea that they remain clean while diesels are dirty. A month ago, it felt like we were finally making way with explaining the benefits of electric cars and how they could work for people in certain areas. Now it seems that we have another government using sweeping generalisations to change public perspective. If a cheap petrol that’s minimal hassle is still a good idea and not facing an increase in tax, why would you bother with the hassle of installing an electric charging point or working out if an EV could save you money? You certainly wouldn’t choose a diesel. First, we can’t trust that the figures are true; now, new figures are too complicated, plus they face tax hikes and extra congestion charge. A few months ago, the government was accused of stalling on clean air plans. Now it seems we’ve gone completely the other way, storming into decisions without consulting those in the industry who will be affected by the ramifications. Without fair facts and clear information, we face yet another government pushing the public the wrong way and more confusion that will further stunt the new car market. For car dealers, it means an extra layer of complication, an even harder sell and, unfortunately, even more resentment towards the car industry. New car diesel sales drop 30 per cent, p106
‘It’ll more than likely push buyers towards petrol cars that aren’t necessarily right for them.’
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 | 23
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
Search by monthly price is launched… At Auto Trader our aim is make it easier for our customers to sell more cars, more quickly and for more profit. That’s why this month, on the 20th December, we’re launching the next step in creating a complete finance solution for both dealers and consumers alike; the ability for car buyers to search our marketplace by their ideal monthly budget. It’s part of our ongoing commitment to help our customers profit through finance. In my role as Brand Director, I’m lucky to get the opportunity to regularly speak with dealers, both large and small – whether that’s during our Dealer Days, our regional masterclasses, or simply when I’m out on the road meeting with customers. On those occasions I often hear that when it comes to finance, many dealers (franchise and independents) are missing out to high-street or specialist lenders. That’s because more often than not, by the time a car buyer visits them at their site, they’ve already arranged their finance deal online or at the bank. Well, I’m pleased to say, that with the introduction of Monthly Price Search, that’s going to change. We’re arming our customers with the competitive advantage they need to engage with car buyers at the very beginning of their car buying journey, not at the end of it.
So, how does it work? Since April 2017, any dealer who is authorised by the Financial Conduct Authority (FCA) has been able to include a monthly price and finance calculator in their adverts, powered by their own lenders and interest rates. From 20th December, we’ll take that to the next level by introducing the ability for buyers to search by their ideal monthly budget, and see all the cars that suit them. If your adverts include finance options, then your cars will automatically appear in this new way to search. They’ll be able to choose their ideal deposit, term and mileage - then send their details to you. Giving you more opportunities to sell cars on finance. Simple as that.
Who’ll benefit from it? Buyers love monthly payments. It’s how people pay for many things including phone contracts, gym memberships, mortgages, the list goes on. In the last 12 months, 2.4 million* cars were purchased
on point of sale finance. So, it’s great news for car buyers because it meets their expectation of being able to search for their next car in the same way they want to pay for it, making the buying journey more convenient than ever. Likewise, it’s an exciting development for dealers. It gives you more ways to attract buyers who might previously not have considered your vehicles. And most importantly, provides you with the opportunity to increase your finance penetration by promoting your offers much earlier in the car buying process.
New & used cars Postcode Show: Used Make (any) Total Price Min Price
Distance (national) Nearly new
New
Model (any) Monthly Price NEW Max Price
Based on 36 months term, £1,000 deposit and 10,000 miles/year
Search 300,029 cars More options
300,000 vehicle adverts on Auto Trader feature finance options from over 9,000 dealers One of the greatest benefits to dealers and consumers is the breadth of lenders to choose from. That’s because unlike some other automotive finance websites, there are over 45 lenders which our dealer customers can choose from to power their finance offers, therefore providing greater choice and flexibility to car buyers. What’s more, even if a dealer is not authorised by the FCA, car buyers will have access to up to 70 different finance products from 17 lenders through our trusted finance partner, Zuto. It means that for over 300,000 cars from over 9,000 retailers, there will be a finance option available to buyers.
How will you tell consumers? After the months of testing and refining the search experience, we’re all ready to go; we just need to let car buyers know about it. And to do that we’re launching a fully integrated multimillion pound advertising campaign on Christmas Day, which is set to run until April 2018.
It’ll celebrate the life events that trigger a next car purchase, and promotes monthly price search as a great new reason to visit Auto Trader. Running across TV, radio and cinema, we’ll reach 41.5 million UK adults in the first month of the campaign alone; that’s 81% of the total target audience, and if that’s not enough, we’ll reach each one of them on average 7.4 times. It’ll increase awareness of dealer finance, which means we’ll be driving even more engaged and well-informed consumers – with a monthly budget in mind – to our marketplace and, ultimately, to your adverts. Make sure you’re ready to capitalise on the opportunity, and do what you do best – sell lots of cars.
For the latest news, views and insight for the automotive retail community, follow @ATInsight on Twitter and LinkedIn *Finance & Leasing Association data, September 2017.
24 | CarDealerMag.co.uk
Big Mike Our man on the inside shares his thoughts on the car business
We’re having to pay the price of Gove the goon’s irresponsibility
U
nless you’ve been hiding under a rock, then chances are you’re aware that all of a sudden diesel cars are ‘Really Bad News’. Yep, the bubble appears to have finally burst, and the days of oily, slimy, clattery cars that belch out clouds of poisonous smoke appear to be numbered. Or at least that’s what Michael Gove MP would like you to believe, since his appointment as Environment Secretary earlier this year. It was Gove who, without explaining the finer details (mainly that this wasn’t entirely true), smarmily declared on national television (ahead of in Parliament) that from 2040 Britain would ban the sale of new petrol and diesel cars – a move that pretty much stalled the car industry and led to punters flying into the weeds, desperate to get away from evil diesels in particular. It’s made life difficult for sellers of cars both old and new, and it’s doubly annoying that this ill-informed drivel has come from the mouth of the same man who immediately contradicted himself on the subject of free movement among EU citizens straight after the Brexit referendum, tried to encourage more people into teaching while at the same time adding more red tape and reducing pension returns, and whose very own father has accused him of ‘making it up as he goes along’. In my book, he falls into the category of ‘prattling idiot, ignore at all costs’. Sadly, the national media-watching public soak it all up and often never look beyond the headlines. It was this kind of knee-jerk reaction that led us into the last recession and – I dare say – will do so again. So why am I ranting about it in the hallowed pages of Car Dealer? After all, Michael Gove’s approach to integrity makes most of us look like Mother Teresa, surely? Well, yes. But his irresponsible actions have had a big impact on our businesses. A good number of you, I’m sure, are peddling much newer metal than me. I specialise in the sub£4k borderline bombsite area of the market where the used car industry’s wiliest characters hang out, and I’m aware that a good number of Car Dealer readers are more used to the polished tiles and frothy coffee of main dealerships. Personally, I’ll take the prefab and a roll or two of bunting any day of the week as you tend to sell cars more often than you sell loans,
the cars themselves are more varied and interesting (such things matter to me, as I’m a genuine petrolhead) and your business is usually far less heavily affected when some cartoonish goon with sticky-out ears and bad-disguise glasses starts honking his opinions around on the telly. Except this time, not. For the past decade at least, about half of my stock has been diesel. I’m not a massive fan of the stuff myself, but Middle England loves (or at least loved) it – after all, you could have all the cachet of a premium German badge on the driveway of your suburban detached, with 60mpg fuel economy to ensure you could still just about scrape together the monthly repayments. It is, sadly, how much of Britain rolls. From an independent dealer’s perspective, they were generally easy to sell, too. Those of us in the know are aware, of course, that the additional maintenance and repair costs of anything with a diesel particulate filter and dual mass flywheel will clearly offset any savings at the pumps unless you’re a full-bore mileage addict, but punters would swallow it whole. Anything with a diesel engine, especially if it also came with a German badge, was an easy sell. But now, things have changed. In the past couple of months, I’ve found diesel cars in particular extremely tricky to shift. Buyers are worried they’re about to get banned from driving them, or be hit with even more punitive fuel duties, and there’s nothing like mass hysteria to make the general public behave like general idiots. Indeed, in my experience, it doesn’t take much to make that happen, anyway. As a result, I’m having to cut my screen prices, and even then the interest is lukewarm at best. Indeed, if you’re a lower-end-of-thespectrum independent dealer like me right now, the best thing you can do with any diesel part-exer is run it yourself until the flywheel inevitably goes bang, making the most of its fuel economy and sudden unsaleability. At this stage, I’d love to tell you that I’d put my money where my mouth is and am, therefore, currently chugging around in a diesel-engined Hyundai of some description in order to get one over on Gove. Tempting though that is, I can’t bring myself to do it. Not least because someone chopped in a 3.0-litre Jaguar S-Type last week and it only owes me £300 stand-in value. Got to have some pleasure out of life!
‘There’s nothing like mass hysteria to make the general public behave like general idiots.’
Who is Big Mike? Well, that would be telling. What we can say is he’s had more than 40 years in the car trade so has probably forgotten more about it than we‘re likely to know. CarDealerMag.co.uk | 25
Feedback. Your comments via email to dave@blackballmedia.co.uk
Our website at CarDealerMag.co.uk
Should I sell to this keen A CLIENT called who lives around 160 miles away from us. He said he really likes a particular car we have but may not be able to come down to buy it. He asked if we would be happy for him to send a recovery truck or transporter to collect it if we can agree a price. They’d pay by bank transfer in advance. I said I’d much prefer they viewed and drove the car first but appreciate that’s not always possible. What are your views? Jimbo I’ve done this lots and lots of times. If you’re confident in what you’re selling and have given an honest description of the car’s bodywork and service record then why is it a problem? I email all paperwork to be signed and get the customer to send it back signed. It all comes down to how confident you are in the car you’re supplying. LOVECARS @LOVECARS This is bang-on. I always look at it this way and if you have any reservations about any marks, how it drives etc. then disclose everything beforehand, even take a video and send to the customer perhaps. The last thing you need is for the car to get there and them to say they don’t want it. That would be a complete waste of your time and you’d end up having to readvertise it. Dealer [Go ahead] as long as you realise that this will come under the distance selling regulations. This means the buyer can reject it for up to seven days and be entitled to a full refund and you, the seller, have to collect at your cost. I used to do it and never had a hitch BUT the way things are now with unrealistic punters, I’ve stopped doing it. BHM We do loads like this and have never had a problem. Most of the customers are just trusting and moving with modern times. The better our pics have got, plus the videos and the reviews, the more we have sold remotely.
Picture of the month THE main stars of the Used Car Awards each year are, of course, the winners of the trophies we hand out on the night. We receive lots of positive feedback from our winners and highly commended winners during the event – and afterwards, we’re always inundated with emails from people saying they had a great time. Many people are blown away by the venue itself – The Brewery in Chiswell Street, London – and this shot of the room before everyone arrived this year shows why our guests are so impressed. Simply stunning! There was one time when we went to deliver an MX-5 to a family in London who were horrified when it turned up. They expected it to have four seats. We thought they were joking at first... but they were dead serious and adamant they had seen four-seater versions on Auto Trader. Rory RSC I delivered one like this yesterday. With today’s technology, partial viewings can be completed via Facetime. I always ask for full payment in advance. The most important things are honesty and having a good nose for trouble so if the car has a mark or two, tell them, and if they ask whether they can buy it over the phone and they sound like trouble, say you’d prefer them to come and see it. I only sell over the phone to probably one in three people who ask. Mojo 121 Not for me. Did a few in the past and it was always because the car was rare but the cheapest for miles. Hassle every time selling to unrealistic ‘buyers’. If the buyer is serious then they’ll turn up to view it. grant8064 For some reason, my gut says no so I’m going to refuse the offer. Too much hassle potential. Jimbo
Keyboard warriors wind me up I’VE got a very clean one-owner diesel 4x4 with a full 12 months’ MOT and FSH. Had it up at £3,995 and just reduced it to £3,695. I’ve included the ‘was’ price in the advert (CAP retail: £4,280). I’ve just opened an email sent last night at 11pm which says ‘£3,000 cash mate’. Grr... what is it with these keyboard warriors? They’re just chancers hiding behind their laptops while their wives have probably gone to bed. I won’t even entertain his inquiry with a reply. What do you guys do? Sarcastic reply or ignore and move on? Beautiful South Martin These people are cretinous vultures. If you reply you’ve lost. Arfur Dealy Ignore. Like most punters, they assume ‘greedy’ car dealers sell cars at 99 per cent margin, and that you could accept any offer and still get a healthy profit. met Just ignore them. They have no intention of buying, and I genuinely believe these pathetic types actually get a kick out of trying to wind up car dealers. Ocsltd
The clueless customer who seemed to be playing a prank JUST had an interesting interaction with a customer. The gentleman walks in and says, I am interested in the Jimny you have out on the front. Oh yes, Mr Customer, the 2016 model at £11,175. Customer then proceeds to say, er no! It’s actually priced in the window at £1,117 so I am willing to pay that amount. I say, yes, very good, very funny, nice try. Shall I get the keys and you can have a look at
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it? No! he says. I’m being serious! You have to sell this car to me at that price, it’s the law. You advertise it, and I’m going to buy it otherwise you’re conning people! I grab the keys and walk him to the car. (It even has the finance example in the window of £11,175) and the 5 is on the floor. You see, Mr Customer, it’s just where the number has fallen down, of course the vehicle would never be this price. Are you actually interested or not ?
He then threatens to take us to court for all sorts and takes pictures as evidence. All the while, me and the manager are stood in bemusement and can’t work out if this is a prank or not. It certainly gave me a chuckle to get through a Monday but I have never experienced anything like this before. Dan W Had that twice. I just laugh at them.
Earunder
More and more of our readers are joining the debate – and it couldn’t be
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customer remotely? Top tweets from the Used Car Awards Drumroll please! The @CarDealerMag 2017 awards has taken place and we were awarded Highly Commended Used Car Supermarket of the Year!! An outstanding achievement made possible by the hard work and determination of our staff! Thank you and well done!! Carbase @CarbaseUK The Codeweavers team had a great time at the Used Car Awards that took place at The Brewery, London. Thanks ever so much to Car Dealer Magazine for hosting such a well organised and prestigious night! CodeweaversLtd @CodeweaversTeam
We won ‘Highly Commended Used Car Supermarket of the Year 2017’ at the Car Dealer Magazine Used Car Awards! It’s a great honour. Cargiant @cargiant #Modix are joint sponsors of the Manufacturer Used Car Scheme of the Year Award! Modix UK @ModixUK Great night at the Car Dealer Used Car Awards 2017. I was honoured to present Newcomer Dealership of the Year Award. Congratulations to all the winners and finalists once again! K Khusro @kkhusro
FEEDBACK
Will my buyer call back on Monday? After a good November (nothing in the last 10 days though), December has started great with two sold already. Feeling confident. Arfur Dealy Very hit and miss looking at sales over the past decade. Some years have been rock-and-roll; others have been flat as a pancake. justina3 I’ve had more inquiries over the last couple of days than I had in the whole of November, so things are looking up. Just had what I thought was a dead cert, too. Guy rings up on Subaru I’ve got, he’s had one before, bought the newer shape, regretted it and wants to get back into an old one. Mine ticks all the boxes, he couldn’t believe his luck finding mine, as it’s ‘exactly what he’s been looking for’. Even by his own admission on the phone, he wanted to try and play it cool, but was really keen for the car. Anyway, he rings back an hour later to say he’s on his way over (two hours away). He turns up, I give the obligatory warm welcome, shake his hand and make him a coffee. He looks around the car, confirming it really is immaculate (it genuinely looks like it’s just come out of the showroom!), perfect full main dealer history, we go out on a test drive. Car drives like new, I ask him what his initial
impression is, he replies, ‘it’s like coming home’. We get back after a perfect test drive, and I’m fully expecting him to say, yep, I’ll have it. I then get, ‘I’m 95 per cent sure I want it’ (he was 98 per cent sure on the phone!!), ‘but, I’ll give you a call first thing Monday morning, can I have a business card?’ (I hate it when they ask for a business card, as that’s usually the kiss of death.) Fearing that I’ve lost him at this point, I politely ask if it was what he was expecting, to which he replies, it’s even better! If he doesn’t ring back Monday, I think I’ll close the doors. He was the perfect person (or so I thought) for the car, and the car was perfect for him! I’ve never met someone so gushy over a car / brand before. All very odd. Ocsltd He’s not coming back, he’s a Subaru pervert. trade vet Did you actually give him your business card? If so, my money’s on him being a be-back bus ticket collector. GreenGiant All bets are off. He rang this morning, he’s going ahead and has placed a deposit. Oh ye of little faith!! (Me included!!) Ocsltd
The team at the Used Car Awards at The Brewery, London. Top 5 in our category – very happy. Well done to our team. Clearwater Auto @Clearwater_Cars
A 33-mile discrepancy... and buyer wants his money back! I’ve got a customer demanding his money back after he discovered a clear MOT mistake by 33 miles – he’s saying it devalues the car. Where do I stand legally? Cokebloke007 Ask him by how much it devalues it. Preferably wear a red nose and very large shoes as he tells you and for his sake, let’s hope his doors don’t fall off. s and b Politely tell him that you can’t be responsible for a thick-fingered mechanic not looking at the speedo correctly, plus anybody (private or otherwise) who runs an HPI check can put any mileage they like in – and that any reasonable person wouldn’t worry about this, but would make an informed, intelligent decision. It’s the sort of complaint I fire straight up to Lawgistics as it sounds like buyer’s remorse to me. NOACROSS Did you manage to keep a straight face when he asked for money off? Sounds like a clear case of buyer’s remorse to me. If it’s a nice sellable lump I’d be refunding in full because people like this are not worth doing business with and a good car can easily be sold again. If it was a sticky car then I’d ask him to please take his grievance through the legal channels and hope he just disappears. grant 8064 Amazing what these pond life types will complain about. The phrase ‘you need to seek legal advice’ should keep him at arm’s length. tradex
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Dashboard. Around the world Dealer news from somewhere other than here
Hard-hitting comment from Car Dealer’s CEO
James Baggott: p122 CANADA
Some dealerships have been accused of encouraging buyers to take out long-term car loans even though they might not be the best option for them. More than half of new car loans across the country are for seven years or longer, according to research from JD Power. Car-buying expert Shari Prymak warned that buyers could be forking out for repairs as their cars get older, while still making repayments for the original purchase.
AMERICA
Manheim, a division of Cox Automotive, has announced a 100 per cent sales rate following an exclusive used car auction event in Las Vegas. The unique offsite sale for Citroën was a collaboration between Manheim Online in the UK and Manheim’s Nevada team. Twentythree Citroën dealer representatives were flown over from the UK to attend the event and experience a Manheim US auction environment.
SOUTH AFRICA
Dealerships in Pietermaritzburg and Durban are being hit by a key-swap scam. Potential ‘purchasers’ are test-driving cars and checking out the shape and size of their keys. They then return later and after another test drive steal the real key while giving a similar-looking dud to the salesperson. This enables them to return a second time to steal the car.
AUSTRALIA
GForces, a leading provider of digital technology, marketing and consultancy services to the automotive industry in Europe, Africa and the Middle East, has established a presence in Australasia for the first time. In co-operation with its counterparts Titan DMS, GForces has launched a brand new website for Cairns Cars, a long-established familyrun dealership in North Queensland and the company’s first client in Australia. ‘We’re delighted to land our first Australian client,’ said James Drewett, head of channel partners at GForces. The company says it is planning to expand its operations in Australia.
INDIA
Lamborghini is hoping the launch of its Urus SUV during 2018 will lead to a three-fold increase in sales across the sub-continent. The manufacturer also plans to open two new dealerships in the near future, taking the total to five. Lamborghini India head Sharad Agarwal told Autocar: ‘Demand for SUVs is high given the challenges we have with infrastructure.’
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CarDealerMag.co.uk | 29
Dashboard.
Part 9: The legal stuff (Part 1) Like any business, a car dealership should cover its backside, starting with a watertight approach to the law… Dan Read explains how.
U
nless you wear a certain kind of wig and work in a courtroom, it’s unlikely that you’ll know the ins and outs of British law. But as a car dealer, there are certain bits you should understand: from getting your paperwork in order, to hiring and firing. Sounds scary but fear not – there are companies out
THE CONSUMER RIGHTS ACT Whether you’re selling sports cars or scented candles, there’s one thing you should read before taking a single penny from a customer and that’s the Consumer Rights Act 2015. Admittedly, it’s not the most riveting of bedtime books, but give it a go because it’s the single most important piece of legislation for car dealers – and, indeed, candle sales people. Just ask ‘No Nonsense’ Nona from Lawgistics. ‘You need to know the basics of the CRA,’ she says. ‘For most issues or problems, a consumer will use it to argue their case. ‘What it essentially says is that any car you sell must be fit for purpose, of satisfactory quality and properly described.’ That’s not all. If a car is deemed to be unsatisfactory, a customer has a ‘30-day right to reject’, meaning you could be obliged to issue a full refund. That’s understandable if you’ve sold a smelly candle with a dodgy wick, but what about a £10,000 car with a dodgy wiper? Ultimately, it comes down to a judge’s interpretation of the word ‘satisfactory’, and thankfully – when it comes to second-hand cars – they tend to take a sensible approach. ‘It has to be of satisfactory quality for its age and mileage – not as if it were a brand-new car,’ says Bowkis. ‘For a car to be rejected – and refunded – it has to be a fundamental issue. On a £3k used car, a faulty spark plug doesn’t mean the customer is entitled to a refund but they are entitled to a repair. Dealers often accept rejections when they don’t have to. The big issue is that some consumers have over-zealous expectations – they expect a brand-new car for used car money. So if in doubt, call someone like myself for advice before doing anything!’
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there that specialise in helping car dealers keep everything above board. That’s why this month we phoned experts from two of the biggest providers of legal advice to the motor trade – Nona Bowkis from Lawgistics and Graham Jones from Lawdata – who agreed to lay down the law for us, starting with the biggest issue of all...
‘The big issue is that some consumers have over-zealous expectations’ Nona Bowkis, Lawgistics
HOW TO PROTECT YOURSELF It’s over to Graham Jones from Lawdata for this one. ‘The most important thing is selecting the right stock,’ he says. ‘Wherever the vehicles come from, you need to do your HPI or similar background checks, and make sure there’s an indemnity clause on the check so that if the results are wrong, you have comeback. Then you need to do your own investigations. Make sure that the mileage matches the available service history and MOT history, and – importantly – you must carry out mechanical checks, known as PDIs or pre-delivery inspections.’ Bowkis agrees. ‘If you buy good stock you’ll have fewer problems,’ she says. ‘Do your HPI checks, do your mileage checks, look for any safety recalls from the manufacturer and do your PDIs. If you’re qualified to do them, fine. If you’re not, use someone who is. Get a deal with a local garage and have them do the checks – that will carry more weight if anything is questioned later on. Always think, right from the beginning, “What would a judge say in court?”’ All of this comes back to the CRA. ‘For the consumer to have a right, any problem must have been apparent from the point of sale,’ says
Bowkis. ‘And in the first six months, any problem is deemed to have been there at the point of sale, unless the dealer can prove otherwise. So your best chance of proving otherwise is to do all those pre-delivery things.’ Jones says: ‘At the very least, make sure the car has a fresh MOT. That tends to show it was in satisfactory condition and roadworthy. And for goodness’ sake, if you do a PDI then get a piece of paper confirming what’s been checked.’ He’s not talking about just any piece of paper, either. From your sales invoice to your warranty booklet (which we’ll talk about next time), you must have proper, legally sound stationery with all the right wording. Both Lawdata and Lawgistics provide these as part of their annual memberships. ‘You need to make sure your documentation is correct,’ says Jones. ‘And use a proper invoice pad, which lays out your terms and conditions – you can get these from various suppliers, including ourselves. If you get the contract right in the first place, everything else falls into place thereafter. There might be a temptation to write your own conditions, perhaps excluding certain things or using terms such as ‘‘sold as seen’’, but these won’t stand up in the eyes of the law.’
WHAT HAPPENS WHEN SOMETHING GOES WRONG? ‘It’s very important that dealers are quick to react to problems – customers have significant rights, and if you push them away they can come back to bite you,’ says Jones. ‘Take a proactive approach at the outset, and if you do receive a complaint get the car booked in and looked at as soon as possible. This can avoid subsequent arguments.’
IN ASSOCIATION WITH
He’s right. And remember: a ratty speaker or faulty sat nav doesn’t necessarily mean you’ve sold the car in an unsatisfactory condition. ‘If there’s an issue, we suggest offering to get something done, without getting into an argument about whether something is satisfactory or not – especially in cases where the customer is prepared to accept a repair,’ says Jones. ‘The most common mistake is trying to brush off a problem and letting it become worse when it could have been resolved earlier at a lower cost.’ Of course, it’s not always straightforward, and even when a customer really stamps their feet, you might want to take some advice before offering anything. ‘That’s where helplines such as ours are useful,’ says Jones. ‘Even a five-minute chat can give the dealer the confidence to move forward. We often find customers will speak to their lawyers, or Citizens Advice, so dealers need to have an equivalent level of knowledge.’
WHAT ABOUT TRADING STANDARDS? As well as the Consumer Rights Act, you also have to think about the Consumer Protection Regulations, which is what the trading standards people are interested in. ‘This gives consumers additional rights,’ says Bowkis. ‘For example, if you don’t tell a customer that a car had its engine replaced in the past, it could be treated as an omission or misdescription, and therefore may have affected whether a customer entered into the deal in the first place.’ That’s why the background checks and a car’s history are so important. Also, be very careful about how you describe your cars in adverts, particularly if you use one of the third-party systems we discussed in Part 8 of this series. ‘Many of the online ad systems pre-populate the car’s details from its registration,’ says Jones. ‘So check and double-check the spec is correct.’
AREN’T LAWYERS EXPENSIVE? Ordinarily, yes. But here’s some good news: both Lawgistics and Lawdata have small business membership packages starting from under £60 per month. Lawdata costs even less if you’re a member of the IMDA. Both offer broadly similar services, including legal helplines, stationery packs, warranty booklets and casework services. ‘Dealers don’t want to spend their time getting into disputes with customers,’ says Bowkis. ‘They want to sell cars and concentrate on what they’re good at. So if there’s a dispute or a stalemate, they can hand it over to us. Some years, a dealer may call us twice for advice; other years, we might handle five court cases for them.’ Just 60 quid a month for a legal pro on the end of the phone when you need one, plus a full toolkit to cover your back. You’d be mad not to. NEXT MONTH: PART 2 – WARRANTIES, FINANCE & EMPLOYMENT LAW
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Finance. AWARD
PARAGON
Euro honour for specialist
Lender group’s pre-tax profits rise to £144.8m
PRESTIGE car finance specialist Oracle Finance has won a major European award. It triumphed in the Leasing Life Awards Asset Finance Broker category at the Amsterdam ceremony. Managing director Peter Brook said: ‘We are delighted. Being recognised on a European stage is a huge boost following an outstanding year.’
STARTLINE
Flexibility is working well with mid-market product S tartline Motor Finance is reporting a strong initial reception for its new midmarket ‘flexible prime’ motor finance product. Finishline was launched in June and has since been adopted by most of the company’s major introducers. It’s designed to sit behind Startline’s core flexible prime product, and is targeted at used car buyers who narrowly fail to meet the company’s current lending criteria but are still considered to be good-quality applicants. Chief executive Paul Burgess said: ‘We find ourselves in the position of having to invent vocabulary for the products that we are introducing, because we operate in a market that tends to think in terms of simply prime and sub-prime. ‘Instead, we are engineering a range of products that more carefully grade Car Dealer Advert Horizontal 2.pdf 2
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by DAVE BROWN @CarDealerDave
applicants and offer them pricing and terms commensurate with their realworld risk profile. ‘So, if our core flexible prime Startline product is designed to sit behind a dealer’s prime lender, typically meeting the needs of a sizeable portion of those rejected, then Finishline is ‘‘mid-market’’ and designed to accept a further tranche of applicants. These people remain good risks, we believe, and Finishline is priced much more fairly than the sub-prime lenders, where these customers may otherwise be Paul placed by 01/03/2017 13:37:03 Burgess
dealers.’ He said Startline saw the motor finance market as distinct segments, with near-prime an integral part of this, and the product range it was developing was designed to underline this view. ‘It makes no sense and is unfair that buyers who fall slightly below prime lender requirements very often end up using a sub-prime offer. There should be other options. ‘Of course, we have some hard lending rules, but in areas where other lenders take a black-and-white approach we will take a look at the applicant in more detail. ‘Finishline is a continuation of this approach, and its initial success is a good indication of the validity of our approach.’
PARAGON Banking Group saw its pre-tax profits for the year ended September 30 rise by £1.6 million on its 2016 result to £144.8m, it revealed in its preliminary financial report in November. Total lending by the group, which provides motor finance among its products, grew by 29 per cent to £1.9 billion and included a 50 per cent increase in its motor finance lending to £120m. Motor finance balances also made good progress, growing by 71 per cent to £163 million, while profits for Paragon’s commercial lending operations, which include motor finance, increased to £14 million from £9 million in 2016 – a rise of 55.6 per cent.. Launched in 2014, Paragon’s motor finance team has maintained a steady focus on prime lending. This year, the team boosted performance by further expanding its network of approved broker and dealer partners and introducing a competitive finance range for LCVs, motorhomes and caravans. Julian Rance, director of motor finance at Paragon, said: ‘Our targeted approach has allowed us to focus our expertise on specialist segments where we’ve identified scope to boost competition through more thoughtful underwriting and a more flexible approach.’
IN ASSOCIATION WITH
Time is money BEN GARSIDE
A monthly look at the world of automotive finance and marketing
Videos will bring clarity to customers’ confusion over their credit files
H
ave you ever had a customer standing in front of you who has no idea what’s on their credit file or even (in some cases) what a credit file is? I’m not a gambling man but I’d put money on that scenario ringing true for some of you out there. A little-known fact is that after a mortgage, an HP agreement is one of the most prominent pieces of credit to get, which means it can be difficult to obtain. In order to be approved for finance, lenders will conduct a credit search or look on a customer’s file. Unfortunately, the lack of knowledge about credit files could be down to most people thinking they’re going to be tricky to understand. Wouldn’t it be great if all of your customers knew a little bit more ahout it? The social media team here at First Response had that same thought and put their heads together to think of an easy way to get this information across. To do this, they set about creating a few two-minute videos. Feel free to share these videos on your Facebook page if you think they’ll be useful. It’s the usual things that customers are unaware of affecting their file. For example, we’ve heard stories of customers getting into an argument with their network provider and refusing to pay the bill. A credit file is usually the last thing people think about when they believe a company has caused them injustice, but unfortunately refusing to pay will likely mean they’ll find it difficult to get finance in the future. As a non-prime lender, we have our fair share of applicants that we can’t help because of credit files or applicants who don’t know about what’s on their file. If these videos can help them, we know
we’re doing the right thing. Of course, there’s no point in just highlighting things you shouldn’t do. The videos we’ve created focus on improving credit files and, once they’re at the stage where they’re in a good position, keeping them so. After all, credit files fluctuate, so it’s something that they’ll need to keep an eye on. To create these videos, we asked for volunteers from across First Response. The social team gathered them together, sat them down and threw some questions at them – look carefully and you’ll see a moment of panic in some of their eyes! We ended up with three bite-sized videos, which you can find at firstresponsefinance.co.uk/blog/ • Understanding Your Credit File – published December 4 • Improving Your Credit File – published December 11 •Maintaining Your Credit File – published December 18 The videos will also be published throughout December on our Facebook page (facebook.com/firstresponsefinance/) and via our Twitter account (@FirstResFinance) for you to take a look at and share on your own page or group. We are more than happy for you or your dealership to share the videos! If you’re not into social media, though, then you are welcome to put the videos on your website – just send me an email at ben.garside@frfl.co.uk and I can give you the embed code to use. I’d also like to know what you think of them. We’ve tried to keep the footage short and snappy so that people don’t get bored. It has to be said that this is the first video project the social group has done, so any positive or constructive feedback is welcome.
‘Look carefully and you’ll see a moment of panic in some of their eyes!’
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
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Dealfinder.
Finance. YOUR ESSENTIAL GUIDE TO . . . ESTATE CARS
BMW 5 Series Touring
Jaguar XF Sportbrake
THE 5 Series Touring is one of the best estate cars on sale, combining a fantastic drive with excellent refinement and versatility. It looks pretty smart, too. The new version was unveiled at the start of the year, making it one of the freshest estate cars on the market. The 187bhp 520d M Sport makes a fantastic choice because of its efficiency and sporty looks. BMW is currently offering a deposit contribution of £4,054.75, with the customer having to pay £7,695.57, too. It’s a 47-month contract, with monthly payments of £359. At the end of the contract, the customer will have paid £24,568.57. If they then want to buy the car outright, they must make a final payment of £16,100.55 plus a £1 fee, bringing the total amount payable by the customer to £40,670.12.
JAGUAR’S new XF Sportbrake is arguably the best-looking estate car available. It’s a fantastic choice for those not wanting to let an estate car sap all the fun out of their lives, as it drives brilliantly. The XF Sportbrake comes with a 178bhp 2.0-litre diesel engine. While there are quicker engines in the range, this provides the best mix between performance and running costs. In R-Sport trim it looks the part too, and comes with an R-Sport body kit, heated seats, front and rear parking sensors and satellite navigation. Jaguar dealers chip in with a finance contribution of £4,055 to the customer’s deposit of £7,200. Thirty-six monthly payments of £379 follow. Once the contract has ended, the customer will have paid £20,844, and they can then choose whether or not to make a final payment of £17,987 to buy the car. If they choose to own it, it brings the total amount payable by the customer to £38,831.
NON-PRIME MARKET
Stoneacre aims to buck trend with Tier Zero lower rate of interest S toneacre Financial Services has brought out a product it says will buck the trend and make car finance for non-prime customers more attainable. Just weeks after the Bank of England increased the base rate from 0.25 per cent to 0.5 per cent, the company launched its Tier Zero product, bringing Stoneacre’s non-prime rate down from 14.9 per cent to 13.9 per cent. Tier Zero benefits two key areas of car finance: non-prime consumers looking for a hire purchase deal or a PCP package with no deposits for either. The latter is a new concept for non-prime customers and lets them obtain a car with a bigger ticket price. Stoneacre said that overall the new product helped those who had suffered from historic
by JOHN BOWMAN john@blackballmedia.co.uk
setbacks with their credit to obtain car finance more easily. It launched its white label lending facility, SFS, in 2013 as a joint venture with Marsh Finance. Head of digital Mark Zavagno said: ‘The demand for new cars is declining, interest rates are rising and finance companies’ appetite for risk will dwindle. Our customers need us more than ever. A new, cheaper finance product will help people who have had turbulent credit histories to access affordable credit.’ David Teatum, head of finance and insurance for Stoneacre, said: ‘We have identified a 10 per
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cent drop in approval rates. We can already see the banks passing on the Bank of England rate increase to consumers. It’s a good time to launch a new non-prime product and absorb the rate increase by reducing profit margins.’ Zavagno added: ‘Despite automotive retail being down, the amount of car finance-related search volume within Google remains strong. ‘New website visitors are peaking year on year, so the demand is still out there. The appetite to service that demand is affecting the industry. That’s why we are happy to subsidise profit in return for volume.’
Car Dealer Advert Column.pdf 3 04/01/2017 10:42:23
IN ASSOCIATION WITH
Kia Optima Sportwagon THE Kia Optima Sportwagon is targeted at buyers who aren’t fussy about the badge but still want a capable and practical estate. A smart-looking vehicle, not only is there a plug-in hybrid version, it’s also available as a 1.7-litre diesel that produces 139bhp, and in top spec GT-Line S specification it manages 61.4mpg. There is barely a box unticked on this trim, with standard equipment including a panoramic electric sunroof, electric tailgate, LED lights front and rear, and heated seats all round. In this spec, customers can get one for £357.95 a month. A 36-month contract will require a customer deposit of £7,150, with an additional £1,000 contribution from the dealer. At the end of the contract, the customer will have paid £20,036.20. They can then choose to pay £10,922.50, meaning their total will be £30,958.70 – substantially less than the other two cars here.
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CONNECTED CAR FINANCE
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Tech-based lending aims to put used car businesses back in the driving seat
Used motor dealers ‘likely to lead online retailing in 2018’
A NEW business has been launched that aims to provide used car dealerships with a fresh approach to help them manage their increased responsibility in the changing landscape of the finance market. Connected Car Finance says many used car dealers are confused by new legislation, or afraid of making an honest mistake and getting punished, so some of them are opting not to offer finance. But being unable or unwilling to offer the flexible finance deals customers need means these dealerships are losing business. It’s been made possible by new technology, and head of development Laura Barker said: ‘Our idea works because it is simple. No other lender is out there offering the different products, at the different levels of risk, we do. We can help dealers to offer finance without them having to worry about the Financial Conduct Authority. ‘Local used car dealers have been trusted members of the community for years. We’re just helping them stay that way and prosper in the 21st century.’
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USED car dealers are likely to lead the way in online motor retailing in 2018 as manufacturers struggle with their direct new car sales websites, says iVendi. The key reason for this trend, said chief executive James Tew, is simply that used car retailers enjoy a much higher degree of flexibility over factors such as price and can offer a broader and more effective range of part-exchange provision. ‘Unlike any other online retail model you could think of, it is more expensive to buy a new car online direct from the manufacturer than to pop out to your local retailer,’ he said. ‘To an extent, even franchise dealers selling new cars online suffer the same issue. The fact is, used car operations do not suffer from this structural pricing problem and are not caught up in the politics of manufacturer-dealer relationships.’
CarDealerMag.co.uk | 35
Forecourt. FIRST DRIVE
BMW M5 Jack Evans tries out the all-new high-powered executive saloon to see what’s new and improved. Quite a lot, as it turns out... What is it?
How does it look?
Following in the footsteps of some of the bestregarded super-saloons ever made, this latest four-door powerhouse has got a tougher job than ever to remain top of the pile. Using the latest engine technology, it’s also the first M5 to feature all-wheel drive, as well as a host of other features designed to make it sharper and more capable than ever before.
The M5 exudes all of the classic styling that we’ve come to expect from big, powerful M-cars. At the rear, four exhaust pipes give some hint of the car’s performance, as do the gills at the side of the car, but all in all it’s still instantly recognisable as a BMW saloon.
What’s it like inside?
The engine produces 592bhp and 750Nm of torque, allowing it to hit 60mph in 3.2 seconds before reaching an electronically limited 155mph top speed. All that fury is sent to the wheels via an eight-speed Steptronic transmission. BMW claims the M5 will do 26.9mpg on a combined cycle, while emitting 241g/km of CO2.
The interior of the M5 uses the vast majority of components from the standard, but excellent, 5 Series cabin. That means you still get an infotainment system that’s simple and easy to operate, as well as solid-build quality and good materials. The M5 builds on this with additional ‘sporting’ touches, such as carbon-fibre finishers for the dashboard. The biggest changes come in the form of driving mode selectors. Two red ‘M’ buttons sit either side of the steering wheel, letting you customise the suspension, steering and engine responsiveness to one of three modes. There’s also the drivelogic selector, now found on the top of the gear stick, which controls how quickly and sharply the car changes gear. As it’s based on a standard 5 Series saloon, the M5 remains hugely practical. There’s loads of space for both up front, while rear legroom is excellent, too. The cabin, as a whole, feels special as well as comfortable – and this makes it ideal for those planning to undertake longer journeys but still wanting plenty of ‘star’ factor.
What’s it like to drive?
What’s the spec like?
BMW M5s of old had a reputation for being somewhat spiky to drive. This latest one has been designed to offer a little more traction – and it’s well and truly achieved this. Despite packing close to 600bhp, the M5 rarely feels out of control, instead offering a lot of balance and adjustability. The biggest factor in this is that all-wheel-drive system. Then there’s the engine. Anybody who doubted turbocharged engines in performance cars needs to experience the way the M5’s V8 deploys its power. There’s no lag to speak of, just shove from throughout the rev range. The steering also has a decent weight to it, though feels its most capable in sport mode – the middle of the three. Comfort feels too light, while sport plus is granite-heavy. The middle ground, unsurprisingly, is the best bet.
Standard equipment includes 20-inch alloy wheels, adaptive LED headlights and dynamic LED brake lights, plus BMW’s professional media system, 10.25-inch colour display and front heated seats. Of course, being a BMW there’s still a long list of options to choose from. Highlights include ceramic brakes, a sports exhaust system and full carbon engine cover.
What’s new? The new BMW M5 makes use of a 4.4-litre V8 turbocharged engine as well as that all-important all-wheel-drive system. The latter is one of the biggest changes to the M5’s layout, with most M-cars traditionally powering the rear wheels only. That said, this new car can still be locked off to rear-wheel drive only – so purists needn’t be too aghast. Not only that, but this sixthgeneration car is lighter than ever before too, making use of carbon-fibre-reinforced plastic to keep its overall weight down.
What’s under the bonnet?
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THE KNOWLEDGE Model: BMW M5 Price: £89,640 Engine: 4.4-litre V8 twin-turbo Power: 592bhp Torque: 750Nm Max speed: 155mph 0-60mph: 3.2 seconds MPG (combined): 26.9 Emissions (g/km): 241 TARGET BUYERS: Those who want a hugely capable four-door saloon. THE RIVALS: Mercedes-AMG E63S, Porsche Panamera Turbo, Audi RS7. KEY SELLING POINTS: 1. Huge performance. 2. Practical body style. 3. Four-wheel-drive capability. DEAL CLINCHER: The new BMW is a goanywhere, hugely capable super-saloon. If you can go for one, you really, really should.
What do the press think? Autocar called the M5 ‘a tremendous car, at one moment refined and conservative, at another rewarding and poised’. Auto Express said: ‘The switch to four-wheel drive has been well integrated. BMW has retained a subtle rear-drive feel while upping performance to the next level.’
What do we think? The M5 certainly came into this world with a lot of competition. However, thanks to better allround capability than ever before, it’s likely to come out on top when it goes on sale next year. It’s relatively expensive, but given the sheer amount of technology and performance on board, it feels more than worth the money.
Engine
The M5’s 4.4-litre turbocharged V8 produces 592bhp and 750Nm of torque.
Styling
Larger air intakes provide enhanced cooling for better engine performance.
Traction
The new xDrive allwheel-drive system gives the M5 huge amounts of traction.
‘The M5 exudes all of the classic styling that we’ve come to expect from big, powerful M-cars.’
BMW M5 driving dynamics expert Peter Schmid discusses the car’s merits Were there any specific goals you wanted to achieve when developing the M5? Absolutely. What we didn’t want to have was an all-wheel-drive M5 with a lot of understeer. Were there any challenges during its creation? We wanted a stronger platform. Therefore, we added a bar into the bottom of the car, as well as an M-car tunnel link. We also put a link into the cabin for better strength. What will drivers like about the new M5? That the car is so easy to drive and easy to get
into corners. There’s also no delay in the steering and acceleration, while it’s also quite compact.. What is an aspect of the car that you really like? My favourite part is the all-wheel drive. We have three modes for it and I like it because you can drift the car very precisely and at high speeds. Do you think that the system will help in all weathers? Absolutely. It’s very stable and easy to drive. We have comfort mode for the steering, dampers and engine, but you can tune it exactly as you’d like it.
Do you think it will be well received by the public when it arrives? Absolutely. After being at the launch event for a week, I’m completely sure. Everyone in the company loves it. Would you ever make an M5 Touring model? There’s certainly a lot of thought about it – but unfortunately nothing is decided! What do you think the future of M5 holds? In the next decade we’ll most likely be seeing electrification coming into the mix. CarDealerMag.co.uk | 37
Forecourt.
FIRST DRIVE
Jaguar E-Pace Ian Callum, director of design, Jaguar, chatted to Darren Cassey about the E-Pace So what motivated Jaguar to make the E-Pace? We had a discussion where we thought, ‘we have the D8 platform [on which the Range Rover Evoque is based], so why don’t we do something about it?’ We’d got our customers used to the idea of a Jaguar SUV with the F-Pace, and we loved the idea of something like a hot hatch – a small, driveable car that younger-minded drivers would enjoy driving. That is the E-Pace’s character. I enjoyed working on it because no-one thought Jaguar could do it, for a brand that builds sporty
saloons to do a cutesy SUV, but we really believed in it, and here it is. How did you finalise the design? It was important that we carry on the design theme of the last 10 years. We’re ‘height-allergic’ so everything has to be profiled to have a sense of speed. We had to have a sense of performance, even in something relatively tall. We started with the F-Pace headlights but wanted it to have its own character, so we used the F-Type lights for inspiration instead. Because people looking at this car have probably never looked at a
Jaguar before, it needed to have its own character – we spent about two months trying to get the grille design right, so it didn’t look like a little brother to the F-Pace. And what about inside? The interior is driver-oriented, just like in the F-Type. There’s also an infotainment screen, but there are still proper buttons [on the centre console]. We didn’t want to follow some manufacturers who use iPad-like screens for everything. There are some things that should be on buttons – tactile controls are still important.
Darren got a chance to drive Jaguar’s take on the mid-sized SUV market What is it? If you want to make money in the automotive industry these days, you need SUVs. Large ones, small ones and mid-sized ones – the latter being where the new Jaguar E-Pace comes in. The E-Pace expands Jaguar’s SUV line-up to two – the larger, award-winning F-Pace was introduced last year.
What’s new? This is a completely new model for Jaguar, but aside from the bodywork, most of its construction uses existing JLR bits. However, the sum of all these parts is something the British brand has never offered before – design boss Ian Callum explained that the company targeted SUV practicality with the driveability and youth appeal of a hot hatch. It’s also the first Jaguar to exclusively use the brand’s range 38 | CarDealerMag.co.uk
of Ingenium engines, which are economical and inexpensive to run, if a little noisy.
What’s under the bonnet? There’s a 2.0-litre diesel and petrol available in various states of tune. First we tested the 178bhp diesel engine with all-wheel drive, which proved perfectly up to the task of lugging the E-Pace around town and cruising at motorway speeds. We also got behind the wheel of the 296bhp petrol, which proved a surprisingly good steer.
What’s it like to drive? The overall drive lacked polish, we felt. The nine-speed automatic gearbox is the clear weak link, while the ride is also a bit too firm (switching to comfort mode doesn’t seem to remedy this). It did excel in one department, though – handling.
How does it look? To burnish the E-Pace’s sporting credentials, Jaguar took styling cues from its F-Type sports car, with the most obvious being the headlights. It’s far from a baby F-Pace, though – something Jaguar was keen to achieve – and has a far more ‘cutesy’ appearance than its bigger brother.
What’s it like inside? The first thing you notice when you climb inside the E-Pace is how roomy it is. The styling does a great job of hiding the vehicle’s proportions and it feels like a much larger SUV.
What’s the spec like? The standard specification is impressive, and makes the £28,500 starting price feel pretty well justified. All E-Pace models get the updated TouchPro infotainment
THE KNOWLEDGE Model (as tested): Jaguar E-Pace First Edition Price: £47,800 Engine: 2.0-litre diesel Power: 178bhp Torque: 430Nm Max speed: 127mph 0-60mph: 8.7 seconds MPG: 50.4 Emissions (g/km): 147 TARGET BUYERS: Those looking for a premium mid-sized SUV that’s more fun in corners than its German rivals. THE RIVALS: BMW X1, Audi Q3, DS 7 Crossback. KEY SELLING POINTS: 1. Looks good. 2. Plenty of cabin space. 3. Better on twisty roads than many similar cars. DEAL CLINCHER: It looks small but has plenty of space inside, making it both practical and fun to drive down a back road. system (which is light years ahead of the old set-up), LED headlights and a rear-view camera. Driver assistance systems include driver condition monitoring and emergency braking. The high-spec First Edition E-Pace, which is available to early buyers, has soft leather upholstery, a suede cloth roof lining and 20-inch alloys.
What did we think? We had high hopes for the E-Pace, and while it’s a great drive on a B-road it’s let down by the harsh ride and sluggish automatic gearbox.
CarDealerMag.co.uk | 39
Forecourt.
FIRST DRIVE
Subaru Impreza
THE KNOWLEDGE
Jon Reay gets behind the wheel of Japanese manufacturer’s latest offering... but is it better to drive and more appealing to look at than its predecessor? What is it? This is the latest version of Subaru’s Ford Focus-sized hatchback. The Impreza name dates back to 1992, and while it evokes memories of fire-breathing WRX and STI models for many people in the UK, Subaru explains that this car isn’t trying to live up to that reputation. Instead, it’s built in the image of the original, more modestly-powered model.
What’s new? The car is new from the ground up, complete with a brand new platform that will underpin future models. The focus, says Subaru, has been on better driving dynamics and safety – the latter taken care of by a whole array of safety gear, headlined by the brand’s ubiquitous EyeSight forward-facing dual-camera tech. There have been plenty of changes under the skin, too. Subaru says the steering is now 0.1 seconds quicker to react (bear with us, it does make a difference), the already-low centre of gravity has been dropped further, the gearbox has lost 8kg of weight and the chassis is as much as 100 per cent stiffer in some areas.
What’s under the bonnet? There’s a choice of two engines: a 1.6 and a 2.0-litre, both naturally aspirated petrols. Subaru continues to use its ‘Boxer’ engine configuration, which keeps the 40 | CarDealerMag.co.uk
centre of gravity low and means it can slide in the brand’s traditional ‘symmetrical’ all-wheel-drive system. Unfortunately, performance from either option is pretty lacklustre. For now, we’d opt for the 2.0-litre: there’s a more usable amount of power, and unlike the wheezy 1.6, it has the added bonus of steering wheelmounted paddles.
What’s it like to drive? Subaru has done away with a manual gearbox option altogether, leaving only (gasp) a CVT. It won’t be to everyone’s tastes, but as CVTs go it’s not too bad. Subaru has concentrated heavily on making the Impreza feel ‘safe’ on the road, which generally translates to predictable handling and almost unshakeable levels of grip, courtesy of its ‘active torque split’ four-wheeldrive system. The Impreza rides extremely nicely in fact, while body roll is kept reasonably well in check.
How does it look? To our eyes the new model is an improvement over its predecessors although it’s a shame that Subaru has chosen not to offer the more attractive 18-inch alloy wheels of our test car on UK models.
What’s it like inside? As with the exterior, there are some definite improvements over the
old car inside – though things are still inescapably Japanese. Material quality is still way off that of a Golf, or even a Mazda 3. Things are pretty spacious, though. Boot space is competitive at 385 litres, and rear leg room is impressive too.
What’s the spec like? Subaru is only bringing one trim level to the UK: the decidedly unexciting-sounding ‘SE’. There’s plenty bundled in, particularly in terms of safety gear: you’ll find blind-spot monitoring, rear cross traffic alert, pre-collision braking assist, lane departure warning and automatic high-beam all as standard. Adaptive cruise control is thrown in too, as are LED headlights that steer around corners, rain-sensitive wipers, keyless entry, a reversing camera, climate control and heated front seats. Infotainment is taken care of by an eight-inch touch screen which – as per usual these days – works with Apple CarPlay and Android Auto, though no built-in sat nav is available.
What do the press think? Auto Express said: ‘Subaru’s latest Impreza sits head and shoulders above its predecessor.’ The Independent added: ‘In some ways this is a much improved Impreza.’
Model (as tested): Subaru Impreza 2.0 Lineartronic Price: £24,995 Engine: 2.0-litre petrol Power: 153bhp Torque: 196Nm Max speed: 127mph 0-60mph: 9.8 seconds MPG: 42.8 Emissions (g/km): 152 TARGET BUYERS: Those who need all-wheeldrive, but not necessarily an SUV or crossover. THE RIVALS: Honda Civic, Mazda 3, Toyota Auris. KEY SELLING POINTS: 1. Features Subaru’s famed symmetrical AWD. 2. Loads of kit thrown in as standard. 3. Arguably the safest car in its class. DEAL CLINCHER: Try finding a similarly-sized four-wheel-drive rival at this price...
What do we think? The previous Impreza had been all-but forgotten in the UK; and it’s likely that the new model will suffer the same fate. There are big improvements over the old car, but without some major UK-centric tweaks to its powertrain and gearbox, it’ll continue to be a left-field choice. That’s a shame, because it’s now dynamically very capable, doesn’t look half bad and has a seriously generous standard kit list.
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Forecourt. FIRST DRIVE
Kia Stinger
Acceleration
With a 0-60mph time of 4.7 seconds, the Stinger GT S is the fastest-accelerating Kia ever.
Simon Davis test-drives a Kia with a difference – is he impressed, or should the manufacturer stick to what it knows best? THE KNOWLEDGE Model: Kia Stinger GT S Price (as tested): £40,495 Engine: 3.3-litre twin-turbocharged V6 Power: 365bhp Torque: 510Nm Max speed: 168mph 0-60mph: 4.7 seconds MPG: 28.5 Emissions (g/km): 225 TARGET BUYERS: Anyone after a slightly left-field performance saloon at an accessible price point. THE RIVALS: Ford Mustang, BMW 440i Gran Coupe, Audi A5 Sportback. KEY SELLING POINTS: 1. Proper performance credentials. 2. Striking looks. 3. Solid levels of standard equipment. DEAL CLINCHER: As a first attempt at a performance-orientated vehicle, Kia has really impressed.
What is it? What’s the first thing that comes to mind when you think of Kia? Most likely, it’ll be a small, reasonably-priced hatchback that’s well-built but not particularly exciting. Something along the lines of a Rio or a cee’d. Chances are, a 365bhp, twin-turbo V6 sports saloon would be the last thing you’d expect. However, with the new £40,495 Stinger GT S, that’s exactly what Kia has gone and built. Quite a bold move.
What’s new? The Stinger is an all-new car for the South Korean manufacturer, as well as its first attempt at a proper performance saloon. It’s an evolution of the Kia GT Concept that was unveiled six years ago at the 2011 Frankfurt Motor Show, and has been developed under the watchful eye of Albert Biermann – the former head of BMW’s M 42 | CarDealerMag.co.uk
Power
In true performance saloon style, power is sent to the rear wheels via an eight-speed automatic transmission.
Division and the man responsible for the cracking new Hyundai i30 N hot hatchback.
What’s under the bonnet? Below that long, low bonnet, sits the Stinger’s party piece. The top-spec GT S model is powered by a 3.3-litre twin-turbocharged V6 engine that develops a considerable 365bhp and 510Nm of torque – all of which is sent to the rear wheels via an eight-speed automatic transmission. That V6 allows the Stinger GT S to complete the benchmark sprint from 0-60mph in just 4.7 seconds, making it the fastest-accelerating Kia ever. Top speed sits at a respectable 168mph.
What’s it like to drive? Kia is adamant that the new Stinger GT S is a gran turismo, and not a sports car – though you’d traditionally consider a GT to be something like
an Aston Martin, with a big V12 engine. Regardless of how you define the Stinger, though, as a first attempt at a properly performance-orientated vehicle it’s seriously impressive. That V6 isn’t the shoutiest or most characterful engine in the world, but it lends the Kia some real straight-line pace and means overtaking manoeuvres are dispatched with ease. Twisty roads won’t cause the Stinger to break a sweat and on a dual-carriageway or motorway, the Stinger becomes a relaxing long-distance tourer.
How does it look? While we’ve never really been fans of the way fastback-style cars such as the Audi A7 and BMW 4 Series Gran Coupe look, the Kia Stinger manages to pull the image off rather well. It’s handsome in its proportions, and that swept-back roofline really adds to its visual appeal.
‘It is an aspirational product and will have a cascading effect on the rest of the range.’
Simon discussed the new car with Ian Mathews, Kia’s head of product planning What does the new Stinger GT S mean for the Kia brand? We see it as being a brand builder rather than a profit generator. About a year ago, we were told in no uncertain terms by our parent Korean company that it was the first car they were bringing to market that they weren’t going to make any money out of. It is an aspirational product and will have a cascading effect on the rest of the range. What percentage of the Stinger sales mix will the GT S make up? About a year ago, we were forecasting something like 15 to 20 per cent, but looking at the way the market has changed – in particular the shift away from diesel – we are now forecasting around a third of the mix, so we are looking at the three grades being around a third each, and the three powertrains being a third each, too. What sets the Stinger apart from its rivals? The very strong design. Its distinctive rearwheel-drive proportions are interesting in the market. It also has a long wheelbase and elements of practicality despite its performance credentials. How has your dealer network reacted? We have about half the dealers on board already and we set standards for those dealers to be eligible to sell the car. Most of them are based on the size of the showroom. We do not want them to have an expensive, separate part of the showroom, but we want them to have enough space to display the regular cars, and a dedicated small area with additional lighting and point of sale to show the Stinger as well.
Engine
The Stinger GT S makes use of a 3.3-litre twin-turbocharged V6 that develops 365bhp and 510Nm of torque.
What’s it like inside? Kia has upped its game as far as the Stinger’s interior is concerned. There aren’t many cheap and nasty materials on display, and the circular air vents in the middle of the dash look like they could have been lifted out of a MercedesBenz. Interior space is generous and the Stinger’s hatchback-style boot offers 406 litres of storage.
What’s the spec like? At £40,495, this Stinger isn’t exactly what you’d call cheap, but you get a lot of car for your money. All Stinger GT S models benefit from an eight-inch touchscreen infotainment system that incorporates satellite navigation, DAB radio, Bluetooth connectivity, Apple CarPlay and Android Auto as standard. There’s also leatherupholstered seats with heating and ventilation up front, as well as a 15-speaker Harmon/Kardon
sound system. A suite of safety systems that include autonomous emergency braking and lane-keep assist are fitted for peace of mind.
What do the press think? Auto Express said the Stinger GT S is a ‘great first attempt at a potent sports saloon’, while Car Magazine said ‘the Stinger GT S is just about as good as we could have expected it to be’.
Have they been given any special training? Yes, they have. Recently, we had a masterclass at Silverstone where they drove the car on the track. We have also given out technical training to make sure they are clear about the engine technology and some of the new features, as there are a lot of firsts for Kia with the Stinger. We think they are well prepared and ready.
What do we think? The Stinger GT S strikes a great balance between being a fast, comfortable long-distance cruiser and an exciting sports saloon. While it’s not quite as raucous as we’d hoped it might be, its dynamic abilities are undoubtedly impressive. CarDealerMag.co.uk | 43
Feature. BMW X3 Moroccan adventure
MARRAKESH EXPRESS
James Baggott experiences searing sunshine, sand, and a certain amount of tyre trauma in north Africa – but boy, is it worth it...
T
he wheels are spinning but the BMW isn’t going anywhere. Every revolution of the static alloys fails to be converted into forward momentum and instead acts as a spade, shovelling sand and sinking the new X3 deeper into the huge blood-orange dunes. Usually this wouldn’t be too much of a problem, but this isn’t a seaside resort: this is 25 miles from civilisation, in the Sahara – the world’s largest hot desert. We’ve spent the last hour tackling one of the toughest off-road routes I’ve ever experienced – from deep, rolling dunes to sharp, rocky trails – and the fact that only now, just a few feet from our final destination, one of my colleagues has managed to half bury a BMW is a testament to the X3’s abilities. Nestled in a lunar landscape, beneath a carpet of stars so bright they look superimposed on the sky, is our camp. A series of Bedouin tents have popped up between the dunes, rugs laid out across the sand, and a sweet smell of mint tea is wafting through the rapidly cooling air. Over a lamb tagine and chicken kebab dinner, we chat under canvas about a day of adventure. It started off in luxury in the incredible Mandarin Oriental in Marrakesh. Outside the site’s gates, roads swarmed with the shrill of hundreds of scooters, darting in and out of battered cars and rammed-full buses. Inside, the complex is a retreat fit for a king. Huge marble arches, rich gardens and luscious lakes surround a myriad huge villas – each with their own pools, steam rooms and Jacuzzis, and bigger than most London flats. Pampered and relaxed, we set off on our epic drive towards the Atlas Mountains, thrown headfirst into the madness of Marrakesh. It’s an assault on the senses and tests defensive driving skills to the limits. It subsides as quickly as it erupted, the roads opening up into out-of-this-world landscapes. Soon we’re crossing the Tizi n’Tichka mountain
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pass, one mighty hairpin after another. Our X3 30d – with a new 260bhp, 620Nm engine – is by far the pick of the range, and on roads like this, it’s swift and enjoyable. Morocco might only be a stone’s throw from Gibraltar and the European mainland but it still feels a long way from home. The scenery is breathtaking, the people fascinating and the temperature testing. The roads, meanwhile, are far from ruined – fresh asphalt and comforting Armco line the Atlas Mountain passes, and the reassurance they give is welcoming. At midday we arrive in Ouarzazate and the famous Atlas Film Studios. It’s here where Hollywood brings flicks such as Gladiator and Cleopatra to life, building huge towns and cities out of wood and plaster of Paris. We drive around the sandy site in our BMWs, entering the gates of Game of Thrones, a huge city set brought to life by thousands of extras that are bussed in from the surrounding villages when they’re needed. By dusk we’ve covered nearly 300 miles and have
taken in the stunning Anti-Atlas Mountains. We filter our way through M’Hamid, the last conurbation before the desert, in a dusty convoy. To the locals we look like aliens, 15 brand-new BMWs disappearing off into the darkness. Our camp, not far from the Algerian border, is an hour of off-roading away. We play follow the leader as our X3 drifts and slips its way like a rally car across the challenging terrain. It would be great fun if only we could see where we’re going. Just the lights of the cars in front illuminate the impenetrable darkness. It’s this swamp of blackness that unbalances the rhythm of one of our colleagues when approaching the camp. They fail to give a sand dune the run-up it deserves, beaching the BMW in a position that takes seven men and shovels to retrieve it from. After a night listening to the chorus of exhausted snoring upsetting the local wildlife, we wake before sunrise to experience the subtle light of the pre-dawn hour. Out here, far
‘The scenery is breathtaking, the people fascinating and the temperature testing.’
From the Atlas Mountains to the set of Game of Thrones, BMW let journalists put the new X3 through its paces. Obviously, they got one stuck... CarDealerMag.co.uk | 45
Feature.
After a night suffering the gentle hum of grown men’s flatulence in a makeshift camp in the Sahara, we set about ruining BMW tyres in the desert from anywhere, it’s a magical hue that gently illuminates the ripples of satsuma-coloured sand as far as the eye can see. Over a breakfast of spicy egg omelette and sickly coffee that you could erect a spoon in, we’re told that today will be tougher than yesterday. Five hours of harsh off-roading will be followed by a dash back across the mountains to the airport – and even leaving at dawn is pushing check-in for our 6pm flight. Warning soon forgotten, we’re quickly back in the off-road groove, drifting the off-roader around sandy corners and clattering over sharp rocks. As the desert eases, we experience the barren, flat, dry beds and dunes of the Oued Draa, Iriki Lake and Erg Chigaga, all stages of the famous Dakar Rally. Huge plumes of dust billow out of the back of the convoy, spreading rooster tails of dust high into the sky, as we chuckle at the spectacle. As we approach Foum Zguid, on the edge of the desert, our BMW calmly tells us our nearside rear wheel has lost pressure. The X3 wasn’t lying – the rubber is well and truly past its sell-by date. BMW chaperones soon arrive out of the dust and whip the ruined wheel off, and we once again make our way back on to Tarmac – after five 46 | CarDealerMag.co.uk
hours of bumping and crashing, the X3 feels like it’s riding on a cloud. Back in the Anti-Atlas Mountains, we start to make good progress, giving us time to enjoy the X3’s comfy new interior and smart multimedia system. But 100 miles in, we hear a popping and a hiss, and the now all-too-familiar warning chime caused by another tyre losing pressure. This time, though, Team BMW isn’t close, and with no phone reception we’re left waiting in the searing heat for help to arrive. An hour later, the support car pulls up – but out jump some very worried-looking PR personnel. We’ve got 130 miles to go, back across the challenging Atlas Mountains, and even without hold-ups it looks like we’ll miss the only flight out of Marrakesh today. What’s more, we’re not the only ones to have lost a tyre – two colleagues are stranded further down the road and will need collecting. And so begins a rush to the airport quite unlike any that I’ve experienced before. In a village at the foot of the mountains we find the national newspaper scribe and his snapper, marooned by a tyre that’s seemingly disintegrated. We throw their kit in the X3 and head off on a three-hour rally stage. From screeching hairpin bends to
blink-and-you’ll-miss-them overtakes, the BMW takes it all in its stride. Through sweat, tears and clenched body parts we hurtle into the Marrakesh airport car park with just minutes to spare. I throw the keys into the hands of the waiting BMW team and we run to the check-in desk. The flight is closing, but we manage to get our boarding passes and dash to the gate. Sat perspiring, exhausted but elated on the plane, I look across to the newspaper hacks who’ve endured the pan-Moroccan mad dash with me and we smile. While at times it was close, often mad, and quite frequently very scary, we made it. The BMW X3 may have two new tyres but it’s been returned unscathed and we’re taxiing down the runway just 25 minutes after we barrelled into the airport car park. All credit to BMW. There aren’t many firms that’d put their cars, or a bunch of journalists, through what we experienced, but I’ve got more respect than ever for the X3 and the company for doing it. It’s proven it’s a truly capable car, able to transport you and your family on any adventure – and I for one am certainly looking forward to the next one. [CD]
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Used Car Awards 2017
A brilliant industry and a fantastic celebration!
I WAS thrilled to see so many representatives of the UK’s illustrious used car industry at The Brewery for the 2017 Used Car Awards. The used car sector really is a vital cornerstone of UK Automotive plc – and until these awards were launched in 2012, its achievements were going largely unrecognised. Just how vital is the used car industry? Well, the figures speak for themselves. At the end of the third quarter of 2017, the SMMT said some 6.3 million used cars had changed hands so far this year. The most popular used car is currently the Ford Fiesta – with the Ford Focus in second place
and the Vauxhall Corsa third. Silver is still the most sought-after colour – accounting for nearly half a million transactions in the last quarter. Buyers in the south-east snap up the most used models, closely followed by those in the north-west and the West Midlands. Interestingly, more people are opting for electric vehicles this year – demand for them in quarter three was up nearly 67 per cent and it’s a figure we’re likely to see continue to increase rapidly. And in contrast to the trends many car dealers are seeing in new car showrooms, used diesel demand is up 4.2 per cent this year.
FIVE STEPS TO AWARD HEAVEN
1
2
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Throughout the year, we receive hundreds of nominations from dealers and their business partners and customers from across the UK
Each entry comes under scrutiny and our first task is to eliminate those dealers who don’t come up to scratch in our first round of mystery shopping
Experts I’ve been chatting to are predicting a flat, stable used car market for the foreseeable future. And Auto Trader’s analysts say that despite the negative sentiments around the industry, their outlook for the used market remains positive. Against that backdrop, I’m delighted to report that the standard of entries for this year’s Used Car Awards was the highest yet. Dealers are trying harder than ever to deliver great customer service. Now a few thank-yous. The Used Car Awards couldn’t take place without all our brilliant sponsors, especially our headline partner Black Horse. The RAC kindly hosted the VIP pre-dinner
James Baggott Founder, Car Dealer Magazine
3
4
After more exhaustive phoning, emailing and visiting dealerships, we work out our shortlist in each category – lists of five potential winners
drinks reception; Aston Barclay supported the after-dinner casino and Codeweavers hosted our official after-party. Sponsors of individual awards play a key role too, so our gratitude to them. And finally, many congratulations to all our winners. If you took home a trophy or ‘highly commended’ certificate, it really is something to shout about.
These lists are published online in advance of the Used Car Awards before they go forward to the big night itself
5
At the awards ceremony, Mike Brewer announces our winner and two highly commended winners in each category CarDealerMag.co.uk | 49
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Social Media User of the Year Sponsored by iVendi Presented by Phil Harding, marketing manager
Awards host Mike Brewer and Phil Harding from iVendi managed to entertain themselves on stage as no-one from Marshall Motor Group was present to collect the award
Winner: Marshall Motor Group Highly commended: CarShop and Alexanders Prestige NOTHING divides opinion in the used car market more than social media. Should you use it as a sales tool and relentlessly promote your latest deals and offers? Or should you be a little more subtle and maybe just keep your friends and followers up-todate with what’s going on in your business? It’s a debate that’s not going away any time soon – but what’s not in doubt is that social media is here to stay, so ignore it at your peril! To present this award – the first of the evening – compere Mike Brewer invited to the stage Phil Harding, marketing manager at iVendi. Brewer told his audience at The Brewery: ‘I’m sure every one of you has access to at least one
social media account right now – and hopefully you’re using it to post about the fantastic evening you’re having! – but we know what a significant impact it can have on a business too, particularly used car dealerships. ‘Over the years this has become an increasingly hard award to judge, as the competition and the dedication has grown drastically.’ Our two highly commended winners – CarShop and Alexanders Prestige – were fully deserving of their framed certificates – but it was Marshall Motor Group who took top honours. Brewer said the company was tweeting, posting and sharing its way to the top! A big well done to all concerned.
80
Marshall Motor Group’s Klout score, showing that the company is a social media sensation!
Brewer’s verdict: No-one is keener on social media than me! Facebook, Twitter and Instagram all have an important role to play these days. Well done to our three winners – keep up the good work! CarDealerMag.co.uk | 51
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Cong to all ratulation th s of th e winne eU rs Awar sed Car ds 20 17
Dealers’ Dealer of the Year Sponsored by Connected Car Finance Presented by Laura Barker, head of development Scott Sibley flanked by Laura Barker and Mike Brewer
Winner: Scott Sibley – Redgate Lodge THE award for Dealers’ Dealer of the Year is one of the most coveted at the Used Car Awards. Any winner in this category can bask in the knowledge that their fellow car dealers have the utmost respect and affection for them and what they do. There are no finalists or highly commended winners in this category, so awards host Mike Brewer wasted no time in revealing who the winner was. He mentioned that there was a large number of nominees this year, making the judging process very tough indeed, but that in the end there was one person who stood out and there was no disputing the shining reviews he and his company had received online and the reputation
he enjoyed. The man who took home the trophy in this category has the full support of his team, who think he makes a positive difference to their working lives, Brewer said. He was praised for having an innovative approach, a willingness to help others and those who nominated him pointed out that he takes time to mentor new entrants to the industry. Our winner launched his business in 2010 and it’s grown to become an award winner – taking home one of our accolades last year too. The audience at the Used Car Awards were asked to put their hands together for Scott Sibley of Redgate Lodge in Shiremoor, Newcastle upon Tyne. Very well done, Scott!
Redgate Lodge serves customers in Newcastle upon Tyne and from across the north-east of England
2010
The year Redgate Lodge was founded, with Scott selling cars on the driveway at his home.
Brewer’s verdict: Scott’s a great chap and I was chuffed he was our winner here. He’s shown a desire for success throughout his career and has worked very hard to achieve it. Well done! CarDealerMag.co.uk | 53
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Service & Repair Outlet of the Year Sponsored by the Independent Garage Association Presented by Stuart James, IGA director
The best in their field! The team from Field’s Car Centre receive their trophy from awards host Mike Brewer, right, and IGA director Stuart James, left
Winner: Field’s Car Centre
Highly commended: Springfield Autocare & Car Sales and Germantech IF IT wasn’t for garages and workshops the length and breadth of Britain, the whole used car industry would fall apart. Ding and dents, MOTs and services, breakdowns and repairs... they all require the attention of skilled mechanics so that cars are looking their best and back on the road as quickly as possible. Mike Brewer explained that in this category, the judges were looking for companies who are reliable, have a high standing in the community and deliver great levels of customer service. Our highly commended winners were Germantech and Springfield Autocare & Car Sales – and we were delighted that representatives of both businesses were able to
receive their certificates on the night. Our winner was a service and repair business that has happy customers shouting from the rooftops. Guests were asked to put their hands together for Field’s Car Centre! A family-run garage in Woking, Surrey, Field’s has main dealer experience and expertise but only charges independent garage prices. Founded in 1981 by brothers Richard and Michael Field, the business now has a team of 14 full- and part-time staff including specialist diagnostic technicians, mechanics and MOT testers. Each one is focused on delivering excellent customer service and pays close attention to detail. Well done everyone!
The teams from Springfield Autocare & Car Sales (above) and Germantech picked up their ‘highly commended’ awards from Mike Brewer
Brewer’s verdict: Service and repair professionals are the unsung heroes of the used car trade in the UK – I’m in no doubt about that. A big well done to all three winners in this important category. CarDealerMag.co.uk | 55
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Best Dealership Use of Video Sponsored by AutoVolo Presented by Stefan Voloseniuc, chief executive officer
Laura Colby from 67 Degrees received the trophy on behalf of Premier GT. On the left is Stefan Voloseniuc, CEO of AutoVolo, and on the right is compere Mike Brewer
Winner: Premier GT
Highly commended: Redgate Lodge and RS Car Sales MORE than 40 per cent of consumers watch videos for up to five minutes every day, according to the latest research. Whether on their mobile phones or computers, car buyers are being heavily influenced by the medium. In this category, the Used Car Awards judges were looking for dealerships that are innovative with their use of video and use it to communicate effectively with their customers. Our two highly commended winners were Redgate Lodge and RS Car Sales – and it was great that both businesses were able to pick up their certificates in person. However, our winner shone that little bit brighter than the rest of the contenders in this
category. It clearly places a huge amount of importance on video, with a high-impact film screened as soon as people visit its website. A West Sussex-based company that’s had more than 45 years’ experience, it sells some of the most beautiful cars in the world such as Ferraris, Lamborghinis and McLarens. Unfortunately no-one was able to make it to The Brewery for the Used Car Awards ceremony but guests were asked to put their hands together for Premier GT. Laura Colby from 67 Degrees, a company that specialises in building automotive websites (including Premier GT’s), was pleased to accept the trophy on the company’s behalf.
Redgate Lodge, above, and RS Car Sales, left, were delighted to pick up ‘highly commended’ certificates
Brewer’s verdict: Video is increasing in importance all the time and our winners in this category have embraced it big time. They’re smashing it out of the park with great results so well done all! CarDealerMag.co.uk | 57
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Used Car Product of the Year Sponsored by Ben Presented by Kelly Neal, events manager From left to right, Kelly Neal of Ben, Victor Lloyd Coutin and Alistair Jeff from GardX AD-Vantage, and Mike Brewer
Winner: GardX AD-Vantage – SpinCar Highly commended: ADESA Upstream and WMS Group – Safe and Sound THE motor industry is full of innovation, and used car dealers are busy people who really appreciate anything that can make their lives easier or help them make more money. Our two highly commended winners in this category are: ADESA for Upstream and WMS Group for Safe and Sound. But our winner this year has been a game-changer for used car dealers, giving them a simple and quick solution when it comes to displaying cars online. Guests at the Used Car Awards were asked to put their hands together for GardX AD-Vantage SpinCar! The technology that powers the product creates an interactive, 360-degree view of a
vehicle meaning a customer can look all the way around its exterior and interior. ‘Hotspots’ can be added in the presentation to highlight important specification upgrades and information, capturing the consumer’s attention as early as possible in the viewing cycle. SpinCar’s machine learning engine monitors every move a consumer makes and uses that data to further improve its displays. All these immersive facilities provide powerful USPs over a dealer’s competition. Needless to say, this all delivers a more positive online experience for potential buyers. Clever stuff indeed and a worthy winner in this all-important category!
ADESA Upstream (above) and WMS Group received ‘highly commended’ awards
Brewer’s verdict: It’s becoming more and more difficult for dealers to stand out online but the team at GardX have come up with a blinding solution. It’s a clever piece of kit and a worthy winner here. CarDealerMag.co.uk | 59
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Dealer Used Car Website of the Year Sponsored by CarGurus Presented by Henry Spitzer, director of sales for EMEA at CarGurus Darren Miller and Barbara Ferguson from Big Motoring World with Henry Spitzer, director of sales for EMEA at CarGurus, second left, and Mike Brewer
Winner: Big Motoring World
Highly commended: Quirks Car Company and Premier GT A DEALERSHIP’S website is the first thing most customers will see these days. It’s your virtual showroom and the easiest way to get cars in front of potential buyers as they sit in the comfort of their own homes. To be in with a chance of winning this award, the judges were looking for something simple to use but also easy on the eye. Something that would hook a customer in but also had all the information they could need. Our two highly commended winners in this category were Premier GT and Quirks Car Company – both with very impressive online presences that really tell people a lot about their businesses and the cars they have for sale.
However, in the opinion of the judging panel, our winner, Big Motoring World, has a website that really shows all the angles of the business and puts the customer at ease with all the details laid out in a straightforward and easy-to-understand way. The company’s new site was released to the public at the beginning of this year and the feedback they have received ever since has been amazing. Even now, the team is constantly tweaking and adding new features to make the used car buying experience even better. Perhaps the secret of their success is that they say the website wasn’t built for them, it was built with the customer in mind. A great approach!
A highly commended certificate in this all-important category was one of two such accolades Quirks Car Company received
18,723
The number of cars sold by Big Motoring World in 2016.
Brewer’s verdict: I love a website with a clear, fresh look and bang up-to-date functionality – and Big Motoring World ticks all the boxes here. I’m not surprised they’ve had great feedback. Well done! CarDealerMag.co.uk | 61
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Manufacturer Used Car Scheme of the Year Sponsored by GardX & Modix UK Presented by Alistair Jeff, head of operations at GardX AD-Vantage, and Darren Sinclair, managing director at Modix UK
From left to right: Darren Sinclair, managing director at Modix UK, David McCluskey of Kia, Alistair Jeff, head of operations at GardX AD-Vantage, and Mike Brewer
Winner: Kia Motors (UK) Ltd
Highly commended: Jaguar Approved and Ford Approved Used KIA Motors (UK) Ltd’s Approved Used Car Programme emerged triumphant in the Manufacturer Used Car Scheme of the Year category – for the third year in succession! Awards host Mike Brewer said Kia ‘offers a warranty that other brands just can’t compete with’ as well as the first year’s MOT covered, one year of breakdown cover and a comprehensive 88-point vehicle inspection. David McCluskey, national used vehicle sales and remarketing manager at Kia, said: ‘We’ve now won this award four times, which underpins the confidence that our dealers and customers have in the Kia Approved Used Car Programme.’
Launched in 2010, and with over 45,000 Used Approved cars sold, the multi-award-winning scheme has been a huge success amongst the dealer network as well as customers. The programme gives used car buyers the same peace of mind as those buying new, with all cars having the industry-leading warranty reinstated at seven years. James Baggott, founder of Car Dealer Magazine and CEO of its parent company Baize Group, said: ‘Kia is a worthy recipient of this award. Our judging process revealed it’s a manufacturer that pays a huge amount of attention to its used car operation. Well done!’
Used Kias such as this 2014 Sportage continue to prove popular with the UK’s motorists
88
Cars sold through Kia’s Approved Used Car Programme undergo an 88-point vehicle inspection.
Brewer’s verdict: Kia are playing a blinder with their used car operation – and customers love what the manufacturer and its dealers are doing. Their third success in a row, too! What an achievement. CarDealerMag.co.uk | 65
Would like to congratulate everyone who was nominated, highly commended and won awards at the Used Car Awards.
Congratulations
for winning the award
Manufacturer Website of the Year Codeweavers sponsored this award and the Used Car Awards after party. We hope you enjoyed the awards and the after party!
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66 | CarDealerMag.co.uk
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Manufacturer Used Car Website of the Year Sponsored by Codeweavers Presented by Shaun Harris, sales director From left, Ben Robinson, digital marketing manager at BMW UK, Codeweavers’ Shaun Harris and Used Car Awards host Mike Brewer
Winner: BMW
Highly commended: Volkswagen and Audi WHEN it comes to manufacturer used car websites, there’s a lot of detail to get over to the customer. With a whole range of cars from across the country and a variety of ways to purchase, it’s the ultimate art of keeping things simple. Which car makers have done this best though? Well, our two highly commended winners in this category were Audi and Volkswagen so well done to them. As you’d expect, first-class online operations from two respected brands. However, there can only be one winner and that manufacturer stood head and shoulders above the rest. Its pages are easy to read but what really made it stand out was the way it displayed finance – with easy-to-use sliders.
The Manufacturer Used Car Website of the Year for 2017 is run by BMW – and it’s interesting to note that the UK has an important role to play within the BMW Group. The manufacturer’s website points out that it is the only place in the world where all three of BMW Group’s brands – BMW, Mini and Rolls-Royce Motor Cars – are represented by manufacturing operations. BMW Group employs around 8,000 people directly in the UK with an additional 14,000 in its retailer network representing the BMW and Mini brands. The firm has invested nearly £2 billion in its UK operations since 2000 – and the UK is BMW Group’s fourth largest sales market.
With BMW you can now reserve and buy your Approved Used car online
£2 billion BMW has invested nearly £2 billion in its UK operations since 2000.
Brewer’s verdict: BMW’s Approved Used Cars website is spot-on – as you’d expect from a premium manufacturer. Audi and VW were worthy runners-up, too – an impressive trio of websites indeed. CarDealerMag.co.uk | 67
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Specialist Used Car Dealership of the Year Sponsored by AutoVolo Presented by Stefan Voloseniuc, chief executive officer
John Mociornita and William Kirkham from Targa Florio Cars collect their wellearned award from Stefan Voloseniuc (second right) and Mike Brewer
Winner: Targa Florio Cars
Highly commended: Quirks Car Company and Romans International WHEN it comes to running a specialist dealership, there is a whole extra layer of complexity, Mike Brewer pointed out as he prepared to reveal the winner of this all-important category. He added: ‘When you take a look, there are certainly plenty of impressive outfits out there and our finalists are the cream of the crop.’ Our two highly commended winners for 2017 were: Quirks Car Company and Romans International. Well done to both of you. Like them, our winner goes above and beyond the call of duty to source top-quality stock and deliver excellent levels of service to its customers. Based in Chichester, it’s a firm that deals in rare, luxurious and collectable cars.
So who picked up the gong? Targa Florio Cars! Working in close partnership with the world’s most highly-regarded and prestigious car brands, the company stocks an ever-changing variety of vehicles. Whether buyers are looking for an impressive sports performer, a rare collectable, or a luxurious drive for the city or countryside, the company is sure to be able to assist. From Aston Martin to Ferrari, Lamborghini to Porsche, Targa Florio stocks some of the most exclusive marques and often has limited-edition models available. They also stock models from Audi, BMW, Bentley, Mercedes-Benz, Jaguar Land Rover and many more manufacturers at their premises.
Quirks Car Company picked up a ‘highly commended’ certificate in this category
6,300,000
The number of used cars that changed hands in the first nine months of 2017, according to the SMMT.
Brewer’s verdict: I checked out Targa Florio’s website shortly after their triumph at the Used Car Awards – and they were already proudly shouting about their success! Great to see them do so well. CarDealerMag.co.uk | 69
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Used Car Sales Team of the Year Sponsored by Aston Barclay Presented by Martin Potter, group operations director Paul and Lorraine Richards from Crompton Way Motors (centre) with Martin Potter and Mike Brewer
Winner: Crompton Way Motors Highly commended: TrustFord and Wimbledon Specialist Cars TEAMWORK makes the dream work – or so the saying goes. And while that might be a bit of a cliche, it’s undoubtedly true that all members of any team need to work together efficiently to achieve great results. In this category, we were looking for a team that not only helped their dealership succeed, but made life pleasurable and hassle-free for customers. With plenty of nominations, it was a close-fought category, as is the case every year. Guests at the Used Car Awards were first of all asked to put their hands together for our two highly commended winners: TrustFord and Wimbledon Specialist Cars. But our winning team received high praise
indeed. They impressed our mystery shoppers with flawless customer service, prompt responses to inquiries and on one occasion, a salesman even called one of our mystery shoppers from his car (hands-free, obviously!) to discuss a vehicle he said he was interested in. This year’s sales team of the year came from Crompton Way Motors in Bolton. After receiving the trophy, director Lorraine Richards said: ‘It’s amazing. It’s for the team. ‘We’ve been in business for 10 years now and we’ve got quite a stable team. We’re customer-focused, and make sure that the whole experience they have is effortless and comfortable.’ Good work indeed!
Wimbledon Specialist Cars picked up a ‘highly commended’ certificate in this category
10
The number of years Crompton Way Motors has been in business.
Brewer’s verdict: Any dealership looking to achieve truly great things needs to have a great team working for it. And that’s clearly the case at Crompton Way Motors. Well done everyone! Great stuff. CarDealerMag.co.uk | 71
Voted Warranty Provider of the Year by dealers like you – three years in a row! The WMS Group were delighted to receive the prestigious Car Dealer Power: Warranty Provider of the Year award for the third year running, as voted for by dealerships.
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72 | CarDealerMag.co.uk
Used Car Dealer Principal of the Year Sponsored by WMS Group Presented by former Stig Ben Collins, the face of the WMS Group’s Safe & Sound Scheme From the left, award winner Tony Entwistle, Ben Collins representing WMS Group and, of course, Mike Brewer
Winner: Tony Entwistle – John Holland
Highly commended: Mike Garrett – MJA Car Sales and Paul Wooding – John Darke Ltd DEALER principals are the driving force behind a top-drawer sales team. The person in charge needs to manage effectively but do their bit when it comes to notching up sales. We had a lot of potential winners here and we worked hard to narrow it down to five top dealer principals – then three, then an overall winner. Guests first put their hands together for our two highly commended winners: Mike Garrett from MJA Car Sales and Paul Wooding from John Darke. Congratulations to you both. Our winner was professional at all stages of our mystery shopping process and runs a crack team that delivers the highest levels of customer service to everyone. Our Used Car Dealer
Principal of the Year 2017 is Tony Entwistle from John Holland, Sheffield. Since its establishment in 1975, the company has developed a growing reputation for supplying the highest quality sports, prestige, luxury and 4x4 vehicles worldwide, and for excellent customer service – and Tony has played a central role in the firm’s success. After receiving his award, he told us: ‘As much as I am honoured and very proud to receive this award, it is as much about my staff as it is about me. Everyone in the business shares the same ethos of the way we go about looking after our customers, which is reflected in the amount of repeat custom we enjoy.’
John Holland’s showroom in Sheffield is home to cars from some of the world’s most prestigious manufacturers
£12,639
The average price of a used car on Auto Trader in October – six per cent higher than in October 2016
Brewer’s verdict: John Holland is a dealership that has enjoyed previous success at the Used Car Awards. Tony’s success here is something everyone at the company should be truly proud of ! CarDealerMag.co.uk | 73
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Rising Star Award Sponsored by Progress Recruitment Solutions Presented by Laura Rycroft, managing director
Winner: Jacob Freshwater – Fresh Motors
Above: Laura Rycroft and Mike Brewer with Rising Star award winner Jacob Freshwater (second right) and his brother Isaac who joined him on stage. Left: Dale Higgins was one of two rising stars who were highly commended
Highly commended: Sam Rideout-Hunt – Reed Autos and Dale Higgins – RS Car Sales THE Rising Star Award is a new one for 2017 and has been included because here at Car Dealer magazine, we wanted to recognise those used car dealers who are working their way towards a bright future in the industry. Those nominated were identified by their colleagues as young guns who are really going for it! Our two highly commended winners were Dale Higgins from RS Car Sales, Sandbach, and Sam Rideout-Hunt from Reed Autos, Cambridge. They’re both top performers and fully deserving of recognition. Our winner began selling cars at university and set up a dealership in his final year of studying. Guests at the Used Car Awards were asked to
put their hands together for Jacob Freshwater, the managing director of Fresh Motors. His Norfolk-based company originally stocked small hatchbacks only. Today it carries a variety of stock tailored to suit customers’ individual needs. Fresh Motors embraces everything to do with the latest technology, too. On its website, it says: ‘Daily we monitor the market using data-driven tools to ensure our offerings continually hold value to our customers. ‘We are evolving to keep up with the changes in the used car industry and embracing technology across all aspects of the business.’ A one-on-one appointment model ensures that all customers get the attention they deserve.
2015
The year Jacob Freshwater founded Norfolk car dealership Fresh Motors.
Brewer’s verdict: A fresh category for 2017 and a great addition to the Used Car Awards. Our industry always needs new blood and let’s hope all three winners here enjoy the bright futures they deserve. CarDealerMag.co.uk | 75
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76 | CarDealerMag.co.uk
Best Used Car Customer Care Sponsored by RAC Approved Dealer Network Presented by Mario Dolcezza, head of RAC Networks Brian Joseph and Shefqet Bera from George Kingsley Prestige and Performance receive their trophy from Mario Dolcezza, second left, and Mike Brewer
Winner: George Kingsley Prestige & Performance Highly commended: Trade Price Cars and Harvey Cooper Cars THIS is always the most hard-fought category of the Used Car Awards, Mike Brewer told his audience at the 2017 ceremony – after all, who doesn’t want to be known for delivering the best customer care? Previous winners have been able to display their award with pride and really ‘wow’ customers with it. First of all, our two highly commended winners – Harvey Cooper Cars and Trade Price Cars – were congratulated on their success. However, the coveted winner’s trophy went to George Kingsley Prestige and Performance, based in Colchester, Essex. Brewer said the service from this dealership was exceptional. Mystery shoppers who made
contact with the business as part of the extensive judging process reported that the team went well beyond the norm. Responses to emails were immediate and they really made an effort at all stages. George Kingsley say everything is about preparation. The company’s website is proud to claim: ‘Our cars are not just cleaned – they are re-born! We all have a passion for prestige and performance vehicles and have taken this enthusiasm together with our experience to meticulously select some of the best used prestige and performance cars we can find to offer to our clients.’ It’s an approach that seems to be paying off, so well done to the team!
Trade Price Cars picked up a ‘highly commended’ certificate in this category
8,000,000
More than eight million used cars were sold in the UK in 2016 – a record number!
Brewer’s verdict: Looking after customers is key – every dealer worth his or her salt knows that. The team at George Kingsley nail it day in, day out and winning this award is a seriously big deal. CarDealerMag.co.uk | 77
PHYSICAL AUCTION
VS
Search for cars online and deal with telephone enquiries from customers. Welcome unexpected customer into showroom and take on test drive. Carry on searching for more cars and decide on auction to visit. Put in diary and shuffle other appointments around to clear day. Brief team on customer enquiries and any stock actions such as servicing or valeting. Set sat nav. Handle multiple calls and messages whilst en route. Stop at services for a coffee and sandwich, checking all emails and any voicemails. Fill up the car. Get stuck on the motorway for an hour in traffic, arriving late at auction. Find parking space. Discover some of the preferred cars have already been sold. Assess other cars going through the lanes and make quick decision on whether to make a bid. Bid on desired cars and buy. Check emails and messages. Back in the car, get stuck on the motorway for an hour and a half. Arrive back at dealership tired, to several messages that need responding to. Start searching for more cars coming up at next auction.
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Used Car Supermarket of the Year Sponsored by ADESA Presented by Jonathan Holland, managing director The Imperial team on stage with Jonathan Holland, second right, and Mike Brewer
Winner: Imperial Car Supermarkets Highly commended: Cargiant and Carbase WHEN it comes to managing significant volumes of stock, used car supermarkets are the experts in their field. Keeping large numbers of customers happy can be difficult – but our finalists this year certainly have that covered. Our two highly commended winners in this category for 2017 were Carbase and Cargiant. And our winning business – Imperial Car Supermarkets – has enjoyed a year of impressive growth, with a laser-like focus on customer choice, service and satisfaction at all levels. It’s a company that now has eight used car retail showrooms across the UK and is one of the UK’s fastest-growing used car dealerships. Company spokesman Scott Beazley described his firm’s success as ‘fantastic’.
He added: ‘We’ve been working hard over the year, opening sites and increasing sales and profits, so it’s great to mark the end of the year with this award. ‘It’s great recognition of everyone’s hard work, not just the team here at the awards, but the whole workforce. ‘The employees have put a lot of time and effort into improving the business, and that’s really what this recognition is about. We can go back to the team and say, ‘‘look, your hard work has been rewarded and recognised’’. ‘It’ll mean a great deal to take this back to the team. Finance, accounts and marketing – every operation in the business will be proud. This is the level of recognition that they all deserve.’
Carbase picked up a well-deserved ‘highly commended’ certificate in this category
8
The number of used car retail showrooms run by Imperial Car Supermarkets across the UK.
Brewer’s verdict: Car supermarkets are large organisations that need to run like well-oiled machines. Our three winners here are right on top of their game. Well done everyone and keep up the good work! CarDealerMag.co.uk | 79
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Newcomer Dealership of the Year Sponsored by Car Finance Giant Presented by Khusro Kamal, chief executive officer
The SRK team on stage with Khusro Kamal, second right, and Mike Brewer. Below: Their dealership
Winner: SRK Specialist Cars
Highly commended: Imola of Bristol and Victoria Cars, Barnsley IT WOULD be fair to forgive a new dealership for being a little off the pace perhaps, as they find their feet in this very competitive industry of ours. But our top dogs in this category really have hit the ground running. And it’s interesting to note that many previous winners have gone on to become well-established players. First of all, Mike Brewer read out the names of the two highly commended entries: Imola of Bristol and Victoria Cars, Barnsley. Well done! Like our overall winner, they received plenty of praise for their high-quality stock, excellent customer service and impressive premises. The newcomer dealership of the year for 2017 was SRK Specialist Cars of Milton Keynes!
Company spokesman Scott Knight said the award was a big thing for the firm. He explained: ‘We’ve worked hard to go from just a home-trading company, to one with 20 cars now. We’ve been doing it the way we wanted to buy cars. ‘There are lots of people who have been in the industry for many, many years at the Used Car Awards, and we’ve just tried to make our business one that we think is right. It’s quite nice to feel that people think the same way as we do. ‘We’re moving onwards and upwards from here. We’re going to keep doing what we’re doing and innovate to do the best we can.’ Well done again to all three of our winners!
Victoria Cars of Barnsley picked up a welldeserved ‘highly commended’ award
Brewer’s verdict: I love seeing new entrants to this great industry of ours do well. The team at SRK must be working hard to get everything moving in the right direction and fully deserve this accolade. CarDealerMag.co.uk | 81
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Outstanding Achievement of the Year Sponsored by Perfect Placement Presented by Jimi Matthews, director of business development
Jeremy Hicks, second right, and JLR UK marketing director Scott Dicken, second left, pick up the award from Mike Brewer, far right, and Jimi Matthews of Perfect Placement
Winner: Jeremy Hicks and the Jaguar Land Rover Charity Swim Team THIS year’s Outstanding Achievement Award went not to one person, as is usually the case, but to a whole group of people who completed an incredible feat of physical endurance during 2017. Led by Jeremy Hicks, the UK managing director of Jaguar Land Rover UK, a team of JLR employees swum the English Channel in relay earlier this year, raising more than £185,000 for automotive charity Ben in the process. Hicks said: ‘It is extremely humbling to receive this award on behalf of my team of intrepid, and slightly mad, colleagues. Our channel swim was a real challenge for us all; we all put in around nine months of training in open water to prepare us. ‘But it was even harder than we imagined, only
made amenable by the incredible support we had in raising nearly £200,000 for Ben. ‘Our retailers played a huge part, too, encouraging their staff to run their own fundraising events. I may be the one accepting the award but there are hundreds of people involved in this, each deserving of recognition.’ The 14-strong team set off from the UK at 10pm on August 24, battling through busy shipping lanes and freezing seas to arrive on French soil just over 16 hours later. Andy Entwistle, Car Dealer magazine managing director, said: ‘What Jeremy and the team achieved is quite simply amazing. It was clear there could be only one winner this year.’
All smiles despite the cold! Jeremy Hicks, left, with fellow swimmers during the challenge
£185,000
The total sum (it was actually a bit more than that!) raised by the JLR charity swim team.
Brewer’s verdict: This really was a staggering achievement – many swimmers restrict themselves to a few leisurely lengths at their local baths ! And what a boost for Ben – almost £200k ! Brilliant. CarDealerMag.co.uk | 83
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84 | 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.
Lifetime Achievement Award Sponsored by Aston Scott Presented by Jem Emirali, scheme developer From the left, Jem Emirali of award sponsor Aston Scott, Stephen Snow with Geoff Snow’s posthumous award, and Mike Brewer
Winner: Geoff Snow – Snows Motor Group GEOFF SNOW, the driving spirit of a motor retailer that now employs more than 750 people and proudly carries his surname on 42 franchised dealerships across southern England, was honoured with the Lifetime Achievement Award. Snow founded Snows Group in 1962, originally as an office supplies company, before he made the transformative decision to enter the motor retail market 38 years ago. Sadly he passed away at the age of 85 in August 2017, but his son Stephen, who took over as chairman of the group when his father retired in 2007, collected the award on his behalf. Stephen said after receiving the trophy on stage at The Brewery: ‘I’m over the moon, honoured and a little humbled too. ‘It’s great that Car Dealer Magazine has recognised my father and what he founded. ‘It’s fantastic to be acknowledged, and it’s just
a shame that he can’t be with us today. ‘It’s very special. I’m honoured to be able to collect it on behalf of my father among people that he would have mixed with and known. ‘I’m very grateful to him, as is all our family and the many people who have worked for Snows Group that we’ve been able to employ.’ It was Snows Business Forms, the print manufacturing company he founded, which opened Geoff’s eyes up to the motor retail market in the 1970s. The Southampton-based firm, which has now been trading for more than 40 years, supplies more than 20 of the UK’s largest motor manufacturers, along with around 10,000 commercial customers. In 1979, Geoff invested in St James’ Toyota Centre, with various franchise deals following. Today, the company represents many other brands too, such as BMW, Citroën, DS and Lexus.
Geoff with his wife of 57 years, Joyce
750
Snows Group now employs more than 750 people across the company.
Brewer’s verdict: Geoff Snow was a true pioneer in the retail car industry and thoroughly deserves this award. Such a shame he passed away recently but his name lives on and he’ll never be forgotten. CarDealerMag.co.uk | 85
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Used Car Dealership of the Year – Up to 50 Cars Sponsored by Black Horse Presented by Tim Smith, head of motor finance Ian and Ted Entwistle of The Premium Car Collection pick up their trophy from Tim Smith and Mike Brewer
Winner: The Premium Car Collection Highly commended: SuperMini UK Ltd and RS Car Sales, Sandbach THE under-50 cars category is a dog-eat-dog world and anyone operating in this area of the market really needs to be on top of their game. We had some cracking nominations in this category from dealerships who take pride in the levels of customer service they deliver and the quality of the stock they hold. First of all, the identities of our two highly commended winners in this category were revealed, with guests at the Used Car Awards putting their hands together for RS Car Sales and SuperMini UK Ltd. Then it was time to find out who the winner was – and top dog was The Premium Car Collection, Sheffield. When it came to the
mystery shopping that took place as part of our judging process, they were fast to reply and offered top-notch service. They knew their stuff and presented their cars in the best way possible. Director Ian Entwistle described the company’s success as ‘brilliant’. He added: ‘We’ve been going for two-and-a-half years. We’re pleased to be going forward into 2018 with this award, and hopefully next year we’ll do even better!’ His colleague and brother Ted Entwistle added: ‘We’re very surprised. We’re only a small company, so to win this in front of all the big companies that are here today feels like a big achievement.’ It certainly is a big achievement, guys. Very well done!
SuperMini UK Ltd (above) and RS Car Sales were highly commended in this category
Brewer’s verdict: Wow. To have started a business two-and-a-half years ago and then be judged to be the best in Britain really takes some doing. Well done to the Premium Car Collection. Good work! CarDealerMag.co.uk | 87
Used Car Dealership of the Year – 51 to 100 Cars Sponsored by Black Horse Presented by Tim Smith, head of motor finance Tim Smith, left, and Mike Brewer with the Tempest 4 Cars team
Winner: Tempest 4 Cars
Highly commended: Reed Autos Ltd, Foxton and John Holland, Sheffield WORTH its weight in gold ! That was how the Tempest 4 Cars team described their win in the all-important 51-100 cars category at this year’s Used Car Awards. After the team received their trophy on stage at The Brewery, company director Martin Pooley said: ‘This is a huge achievement for the team. We’ve all put in that little bit of extra effort to push things forward. ‘We work hard, and we’re aware that we have a lot of competition. Every year, we have to push harder and harder to make sure that we’re at the front. This award means a massive amount to us. We built this company from nothing, and it’s been an incredible journey.
‘This is the icing on the cake at the end of the year. It’s worth its weight in gold.’ In his speech before the winners were annouced, Mike Brewer said of our top five in this category: ‘They are all top companies who take customer care seriously, as our painstaking rounds of mystery shopping proved. ‘Please put your hands together first for our two highly commended winners: John Holland, Sheffield and Reed Autos Ltd, Foxton. Congratulations, you both wowed our judges. ‘However, there can only be one winner. They really impressed in every way.’ As we’ve said, it was a big well done to Tempest 4 Cars. Great work, everyone.
Tempest 4 Cars is based at Small Dole near Brighton in West Sussex
4.2 per cent The extent to which demand for used diesel cars is up year-on-year.
Brewer’s verdict: The team at Tempest 4 Cars are great. You really do have to work hard to keep ahead of the pack – and they certainly seem to be doing that. A blinding achievement, well done! 88 | CarDealerMag.co.uk
Used Car Dealership of the Year – Over 100 Cars Sponsored by Black Horse Presented by Tim Smith, head of motor finance
The triumphant Roadside (Garages) Ltd team on stage with Tim Smith, left, and Mike Brewer. Below right, the business also holds a Kia franchise
Winner: Roadside (Garages) Ltd, Coleraine Highly commended: Research Garage Group and Trade Price Cars ORGANISATION is key when running a site populated by 100 or more cars and keeping your customers happy with so much stock to manage is a difficult task. With this in mind, it was a big ‘well done’ to our two highly commended winners in this category: Research Garage Group and Trade Price Cars. Turning to our winner, awards host Mike Brewer explained that it was a company that stocks a huge range of used cars – or as they describe them, ‘pre-loved’. The company in question was Roadside (Garages) Ltd! A delighted David Boyd, who heads up the team at the dealership, said: ‘In the last year we’ve had to change our business model because
we were Vauxhall dealers, and now we’re the largest Kia brand centre in Northern Ireland. ‘We’ve not only upped our game with Kia, but in used car sales too. We’re no longer preregistering cars like we were for Vauxhall, we’re selling cars like we ought to. It’s been a great night – made all the better by this award!’ Sales specialist Jamie Brown added: ‘This award means we’re heading in the right direction as a business. It looks like we’re offering what customers are looking for, and from here the journey continues!’ Well done indeed to them and also our two highly commended winners. Maybe we’ll see you at the 2018 Used Car Awards!
Trade Price Cars picked up a well-deserved ‘highly commended’ award
Brewer’s verdict: Our winner here has made some big changes to their business recently and it looks like they’re paying off. Well done to the team at Roadside – they’re nailing it with used AND new cars! CarDealerMag.co.uk | 89
Used Car Dealership Group of the Year Sponsored by Black Horse Presented by Tim Smith, head of motor finance
Kelly Neal from Ben picked up Marshall Motor Group’s award
Winner: Marshall Motor Group Highly commended: Hendy Group and Perrys MARSHALL Motor Group picked up the award for being Used Car Dealership of the Year. And on a night that many relatively new entrants to the used car market were honoured, it was great to recognise the achievements of a company that has been around for more than a century. The company’s dealerships represent 24 leading global manufacturers, such as Audi, BMW, Ford, Mercedes-Benz and Volvo. And its network has grown into one of the largest in the country. Marshall offers new and Approved Used cars and commercial vehicles from locations across the UK. And the company is adamant that when it comes to customer service, people and personal values are always important. As well as the ‘Dealership Group of the Year’
gong, Marshall picked up the social media award too (see page 51). Last year, there was also a brace of trophies for the firm with CEO Daksh Gupta winning the Dealers’ Dealer of the Year Award as well as the Outstanding Achievement accolade. The company’s website after its 2017 triumphs reported: ‘Marshall Motor Group are immensely proud to have walked away with two such prestigious awards. ‘We would like to thank both colleagues and customers for their continued support over 2017, as well as Car Dealer Magazine for the kind recognition of their efforts.’ Hendy Group and Perrys were highly commended in the dealership group category.
Marshall Motor Group CEO Daksh Gupta
6
The number of ‘pillars of service’ Marshall has, to meet and exceed customer expectations.
Brewer’s verdict: We honoured some great newcomers to our industry this year – but Marshall Motor Group has been around for a long time and continues to go from strength to strength. 90 | CarDealerMag.co.uk
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CarDealerMag.co.uk | 91
Used Car Awards 2017 Sponsored by Auto Trader Presented by Nick King
The big six: Your used car heroes
W
elcome to our six of the best for 2017 – the halfdozen used cars that really do bring home the bacon for UK car dealers. In order to determine our used car heroes at this year’s Used Car Awards, we once again crunched the numbers to work out which ones have the best residual figures after three years or 30,000 miles. Data taken from Glass’s, Auto Trader and Cap HPI was analysed and combined to identify the deserving winners you see on these pages. There are now seven categories to potentially win in: best used small car, best used mid-sized car, best used executive car, best used sports car, best used SUV, best used electrified car and overall winner. These awards are ones that no individual dealer can influence – it’s all about the market figures for these vehicles at the time of the judging process. That also means they are some of the toughest to win, as every vehicle that is three years old is eligible in its category – but only one can prevail.
USED ELECTRIFIED CAR OF THE YEAR
USED MID-SIZED CAR OF THE YEAR
TOYOTA PRIUS
DACIA SANDERO
THIS is a new category for 2017, and rightly so, since electric and hybrid cars have really pushed their way into the consciousness of drivers this year. This category covers all-electric and hybrid cars, which are trying their best to get pollutants out of the air but are still in the minority when it comes to the used car market. Often described as the car of the stars because of its popularity with celebrities, it’s the Toyota Prius.
MID-sized cars are key to the success of dealerships up and down the UK, offering a bit more practicality than city cars but often retaining decent levels of fuel economy, too. They’re perfect for families and there’s a wealth of choice. Our winner here is one of the cheapest new models punters can buy, and a very strong player in the used car market too. Used mid-sized car of the year for 2017 is the Dacia Sandero.
Gareth Jeffreys, social media manager at Toyota (GB) plc, receives the Prius’s award
Matt Downing, manager for remarketing & TCO at Renault UK, collects the Sandero’s trophy
USED SUV OF THE YEAR
NISSAN QASHQAI THERE’S big money in these cars if you can buy them at the right price and find the right buyer. Our winner this year was a game-changer for the brand that makes it and it has just released a new generation. Guests at the awards were asked to put their hands together for the used SUV of the year: the Nissan Qashqai!
Giles Rayner, Nissan’s national used vehicle remarketing manager, with the trophy 92 | CarDealerMag.co.uk
USED SMALL CAR OF THE YEAR
USED EXECUTIVE CAR OF THE YEAR
USED SPORTS CAR OF THE YEAR
FORD FIESTA
MERCEDES-BENZ C-CLASS
MAZDA MX-5
SMALL cars can help dealers build relationships with new drivers who will hopefully return as their requirements change over the years. With great profit opportunities, it’s easy to see why this type of car is a staple for a lot of our readers. Our winner here has been around since the ’70s and is now on its eighth iteration. It’s sold in droves in the used car market and there’s no sign of its popularity waning. Well done to the Ford Fiesta.
THIS is a segment that’s dominated by the German brands, and there’s always going to be strong demand from people desperate to get into an executive car with badge appeal. That said, executive cars need to have a specific suite of features. Buyers are looking for comfort paired with performance, and at least a hint of luxury. This year’s winner ticks all of the boxes. Congratulations to the Mercedes-Benz C-Class.
SPORTS cars are a relatively niche product, but for some dealers they’re the backbone of their business. It’s quite a specialised segment and attracts a certain type of buyer, but it’s still a competitive area with plenty to choose from. Our winner this year has always been popular and it’s gained a cult following over the years. It’s been around for more than a quarter of a century and continues to sell. It is, of course, the Mazda MX-5.
Ian Giblin, remarketing manager at Ford Motor Company, collects the Fiesta’s award
Actress Lucy Benjamin picked up the ‘best used executive car’ award on behalf of Mercedes
Tamara Brown, Mazda remarketing manager, on stage with Nick King and Mike Brewer
OVER THE PAGE: THE OVERALL WINNER
CarDealerMag.co.uk | 93
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Used Car Awards 2017 Sponsored by Auto Trader Presented by Nick King, insight director
USED CAR OF THE YEAR
NISSAN QASHQAI
Giles Rayner, left, Nissan’s national used vehicle remarketing manager, was invited to join Nick King and Mike Brewer on stage a second time when the Qashqai was named overall winner THE Nissan Qashqai emerged triumphant as the overall Used Car of the Year – a well-deserved success for a vehicle that can legitimately be described as a game-changer for Nissan. Manufactured in Sunderland, the Qashqai is currently the best-selling vehicle built in Britain, and is exported to around 100 European and global markets. It represents almost one in five of all British-made cars and is the most successful model in Europe in Nissan’s 83-year history, with
approximately 2.3 million sold since the original version was launched in 2007. Rebecca Chaplin, head of editorial at Blackball Media, the publisher of Car Dealer Magazine, said: ‘The fascinating thing about Qashqai is that previous-generation models seem to be standing the test of time so well. Used examples are incredibly popular and Nissan can justifiably claim to have pioneered the crossover sector. Qashqai is fully deserving of this award.’
Brewer’s verdict: ‘Game-changer’ can sometimes be a bit of a cliché – but not when it comes to the Qashqai. It’s been nothing short of a phenomenon and thoroughly deserves this prestigious award. CarDealerMag.co.uk | 95
The Aston Barclay Casino Guests treated to chips with everything NATIONAL independent auction group Aston Barclay hosted what was a completely packed casino at the Used Car Awards. Every attendee was gifted £10-worth of ‘dealer dollars’ that could be cashed in for chips. The stakes were high as the biggest winner would walk away with a prize. Our guests were hoping Lady Luck would be on their side and they crammed into the room to get a chance at the tables. Only one would walk away victorious though, and this year it was Laura Colby from 67 Degrees! She won a day in a private box at Donington Park, courtesy of Aston Barclay. Well done Laura and we hope you have a really great time!
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The Codeweavers After-Party Celebrations went on into the night FOR those who were still in the mood to celebrate after the awards ceremony, the party carried on through the night at the Codeweavers After Party, around the corner from The Brewery at the Amber Bar. If you were looking for cheesy music, bad dancing and some very merry car dealers, this was definitely the place to be! This year’s event was a huge success, with the festivities continuing into the small hours – and we have to confess that the Car Dealer Magazine team got involved in some very excitable dancing. Even the after-party wasn’t enough for some of our guests though – in fact there are probably still some people having a good time as you read this...! [CD]
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Audi A3
Audi TT
Ford Fiesta
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**Source: AOL 98 | CarDealerMag.co.uk
Skoda Yeti
Toyota GT86
Ford Focus
Ford S-Max
Fiat Panda
Kia Carens
Kia cee’d
Nissan Qashqai
Peugeot 208GTi
Peugeot 3008
Range Rover
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CarDealerMag.co.uk | 99
Focus on. Findandfundmycar.com
Can findandfundmycar.com reinvent the car classifieds? FINDANDFUNDMYCAR.COM
F
rom local newspaper advertising, to specialised print and more recently online promotional platforms, classified advertising has long been the bedrock of car dealer marketing. The appeal of the traditional local paper Friday advert may have been replaced by modern car sales aggregation services, but could the launch of the ‘co-operative’ spirited findandfundmycar.com service signal the next reincarnation of dealer advertising? In 2018, findandfundmycar.com will enter the market, bringing with it a number of distinctive attributes that have certainly created interest within the dealer community: 1. The platform is ‘not for profit’; 2. It aims to differentiate itself by leveraging the power of finance to tap into the 70-80 per cent of used car buyers who don’t use dealer finance (when over 80 per cent of new car buyers do!); 3. It has been very consciously designed ‘by dealers for dealers’; 4. It has a serious launch budget and expertise from former senior GoCompare personnel to ensure the business becomes a household brand; 5. It carries the message of ‘feelgood car buying and selling’ – it is not just about the customer, it is about the customer and dealer together. So certainly, some clear differentiation but can it gain the crucial buy-in from the dealer community? Head of findandfundmycar.com, Philip Morgan, joined the business having previously worked with GoCompare. He points to three areas that will help dealers understand just how findandfundmycar.com aims to support their success in 2018. Affordability and profit Says Morgan: ‘We are backing dealers and in every possible way, we are looking for them to back us! By removing any direct profit need, we
T: 0844 880 2401
are reducing dealer advertising costs at a stroke, making the decision to use the service both easier and certainly affordable. Every dealer penny is then being invested into building a brand that is known and trusted by consumers and selling cars and dealer finance sales in the used car space. ‘We recognise that this is a bold step and one taken in the co-operative spirit upon which findandfundmycar.com has been created; we are by no means tying dealers into MotoNovo Finance. Our success is completely linked to the success of the dealers using the service and their
Philip Morgan
capacity to share their stock and finance with us. To take this co-operative spirit further, we are open to the idea of welcoming other likeminded lenders to the site once the concept has been proved. Getting the name known Morgan continues: ‘As someone involved in creating GoCompare and the instantly recognisable (visually and audibly) Gio Compario character, I know about creating powerful brands. ‘A £5 million launch budget, a seriously catchy ‘‘earworm’’ tune and memorable creative, backed by a major digital presence, will create an impact. ‘We aren’t aiming to be the generic name for consumers to discover their next car; that is already taken, but we are aiming to be the go-to brand for used car buying and financing – with 80 per cent of car buyers needing finance to buy the car, linking the two aspects of finding and funding together at the start of the car buyer’s journey is a gap we aim to fill.’ Addressing the ‘80/20/80’ opportunity ‘The 80/20/80 opportunity should have dealers pricking up their ears. In short, 80 per cent of car buyers need finance to buy a car, but while 86 per cent of new car buying consumers use dealer finance, this figure drops to an estimated 20 per cent for used car buyers. However, over 80 per cent of those who do opt to take out a finance agreement really value the dealer finance experience. This is the ‘‘80/20/80’’ opportunity, one where we can drive additional car and finance selling activity through dealers.’
findandfundmycar.com goes live in January 2018 and Phil Morgan says everything is going well in advance of the launch: ‘Everything is on track. Like any aggregator, we need the support of dealers and their stock. With six weeks to launch, we are ahead of our targets and adding new dealers on a daily basis. It is very evident that many dealers are keen for us to succeed and with their backing, we will.’ 100 | CarDealerMag.co.uk
Focus on. Click Dealer
Will the last dealer left in the Dark Ages please turn off the lights? CLICK DEALER
W: clickdealer.co.uk T: 01782 478220
W
hilst you’re assessing the highs and lows of 2017 and no doubt looking ahead to the opportunities that 2018 will bring, you’ll hear a lot of noise about selling vehicles online – the question is, do you believe the hype? In 2017, buying and selling pretty much anything online is no great shakes to the consumer any more, and that now includes new and used cars, with more and more dealers and manufacturers making the leap into the world of e-commerce. Click Dealer is a profitability partner to more than 1,200 independent used vehicle dealers across the UK, using technology and data to increase profitability and drive efficiencies in the day-to-day running of a dealership. Our mission is to disrupt the UK automotive retail industry with tech innovation and a fivestar customer reputation from deep in the heart of Stoke-on-Trent. With over 15 years’ industry experience as digital dealership experts, nobody at Click Dealer believes that selling online is as easy as sticking a ‘buy now’ button on a website. Let’s face it, selling vehicles is a complicated business. In fact, the team at Click have most likely been asking the same questions as you:
• How can you handle a part-ex valuation? • Can you take deposits and reservation fees online? • What are the laws on distance selling and how do you stay compliant? • How do you engage with customers outside working hours? • How do you increase finance penetration and present add-on products? • How do you see real commitment to buy without that all-important handshake? • Is transparency in business a good thing? It is these variations in the purchasing journey which make automotive e-commerce so very tricky – you see, some consumers are focused on budget, others just fall in love with the vehicle, then there’s the complexity of part-exchange and
don’t forget, there’s still finance to consider! Stock is also a huge challenge. If there’s a customer on your forecourt and one on your website, both looking at the same car at the same time, you need to be able to either take the vehicle offline immediately or let the walk-in know it’s just been sold! But if your online retail platform isn’t integrated with your stock system, this could be incredibly problematic indeed! For some customers, the finance deal is the most important part of the process, while others will be more concerned with add-on products, or estimated delivery / pick-up times. More considered buyers will still be interested in consuming inspirational content and research in various formats before making that final commitment. Inevitably, these varied personas dramatically impact what an independent used vehicle website and buying experience should feel like. Understanding the various consumer journeys has also become vital for dealers to be able to influence buying behaviors at crucial decisionmaking times. The indisputable fact is that it’s the more digitally-savvy dealers that will have the ability to engage with consumers 24/7, giving themselves a huge advantage over competitors by capturing leads in one fully integrated system. Rest assured, wherever you are on the digital journey, Click Dealer has something to offer. With industry-leading websites; comprehensive dealer management systems; specialist automotive SEM services; reputation
management software and now with the world’s first integrated online retailing platform on the horizon, there’s never been a better time to join the ‘Clickers’ – our five-star customer rating from our award-winning dealers proves it! • If you’re in the market for a new partnership to increase your dealership’s profitability, efficiency and web presence, give one of our friendly Clickers a call today on 01782 478220 or contact us on marketing@clickdealer.co.uk with the discount code CDM18 to unlock your exclusive Car Dealer Magazine offer!
Quote ‘Since joining Click Dealer, we’ve seen a huge increase in the volume of leads, conversions and, in turn, profitability. We’ve saved at least a day a week in admin time through using one end-to-end system! They’re extremely pro-active with a portfolio of leading tech. Click Dealer has helped to make my business a seamless operation so we can focus on high-quality customer service. I’d highly recommend them to any forward-thinking dealership looking to progress to the next level.’ Scott Sibley, Redgate Lodge – winner of Car Dealer Magazine’s Dealers’ Dealer of the Year Award 2017 CarDealerMag.co.uk | 101
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Data File.
Ask Lawgistics .com
Car Dealer Club lawyers at Lawgistics answer dealers’ legal questions. Join for £49.99 a year to get advice like this when you need it
Where do I stand on mileage mix-up?
Q
I am being sued by a customer who bought a Range Rover from me a year ago. I heard nothing from him following the sale until I received a directions questionnaire from the court. The customer claims that in January 2017 (a few weeks later), a dealership quoted him a part-exchange price of £6,300 for the vehicle. However, before he part-exchanged, a discrepancy with the mileage was identified via the online MOT information and his partexchange offer was reduced to £3,500. He went ahead with the part-exchange at the reduced price and has issued proceedings against me for £3,000 in damages, claiming I misrepresented the car at the point of sale. I carried out an Experian check before selling the customer the car and no information came to light relating to any mileage discrepancy. I admit to not checking the online MOT history of the vehicle prior to sale, but having looked recently, I believe it is highly unlikely the vehicle has an actual mileage of 40,000 more than the odometer reading, as has been claimed.
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The first MOT does have a recorded mileage of 102,142 but it is unlikely the car travelled this distance in its first three years. I believe the original recorded mileage in the MOT history is an input error with the subsequent entry from April 2010 being an accurate input of 64,000 and the subsequent annual recordings demonstrating increments consistent with the use of the car at the national average of around 12,000 miles a year. I do not believe this car has been clocked and I was given no opportunity to consider the matter before a claim was issued against me. Does the claimant have a case?
A
A misleading omission of the correct mileage or misleading action of putting on a false mileage is a criminal offence if proven. You are not being accused of having clocked the car – you are being accused of misrepresenting it. Misrepresentation in contract is a false statement of fact of which there are three types: fraudulent, negligent and innocent.
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.
An innocent misrepresentation means a false statement has been made by someone who had reasonable grounds for believing it to be true. You carried out due diligence in accessing an Experian report and at this point it seems the vehicle’s odometer reading was not shown to be false. However, ideally, you would have checked the MOT history and brought the discrepancy to the buyer’s attention. You do have a plausible explanation for the discrepancy but there is a discrepancy all the same. The burden of proof at this stage, required by the Consumer Rights Act 2015, is upon the claimant to demonstrate the car was not as described at the point of sale. The judge may decide that your failure to check the MOT history does amount to innocent misrepresentation and award damages to the claimant. Please remember, there can be discrepancies in the information held by data agencies such as Experian and HPI. Dealers should be as diligent as they can be in their pre-sale checks in order to mitigate against future claims.
Buy and sell trade stock quickly and profitably Cartotrade.com is the new online trade-to-trade platform set up by the ex-management team of Autotrade-mail. Cartotrade’s focus is on the integrity, security and accessibility of stock complemented by a simple yet innovative platform that allows its members to buy and sell trade stock quickly and profitably. To see the benefits, Car Dealer Club members can have an extended, no-obligation, four-week free trial*. If, after the free trial, a Car Dealer Club member wishes to subscribe, they then get their next month completely free, without contracts and never a price increase. * Subject to vetting
Exclusive five per cent discount on your tailormade trade insurance At Unicom, we’ve been safeguarding our clients with the best protection policies for more than 20 years – so, no matter what role your business plays in the motor trade, we can have you covered for every possible risk. From road risks to legal cover, your motor trade insurance can be tailored to suit your individual needs. It’s our job to make sure that you get the best price for the cover that you want.
Traumas over trade plates
Q
If one of our mechanics is caught test-driving a customer’s car without proper trade plates displayed, who will be held liable? Where a mechanic is caught without the proper plates displayed, whether or not he knew, he is liable for operating the vehicle without proper identification on show. In some cases, the owner will also be held liable, but of course the owner will suggest the car was compliant when he drove it to the garage! Overall it is the responsibility of first the driver (and his boss if it is a mechanic on test) and then the owner to ensure the car is compliant with the law. Similarly, if a car on test is stopped for ANY misdemeanour, then again the mechanic on test may carry the can. While it is not always possible to diagnose a problem without a test first, it is incumbent upon those deciding to venture onto the highway to make sure the car is legal. It can never be possible to eliminate ALL risk of transgression of the law.
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‘We absolutely destroyed a customer’s case in court thanks to great advice from Lawgistics’ JASON DRURY is the sales manager at Reed Autos in Foxton, near Cambridge. The garage typically sells cars under five years old and mainly focuses on premium manufacturers such as BMW, Audi and Mercedes-Benz. Reed Autos had a good November, scooping two highly commended awards at Car Dealer Magazine’s Used Car Awards. Sam Rideout-Hunt was rewarded in the Rising Star category and the business narrowly missed out on the top spot in the used car dealership (51-100 cars) category. Drury told us that the actual location of Lawgistics was part of the appeal: ‘We’re fairly local to Lawgistics’ office – only about half an hour away – and we love the service that they offer. The team at Lawgistics are excellent and they provide a lot of support to us.’ Drury also told us that the company had been particularly helpful in a court case involving a BMW 1 Series last year. ‘A customer wanted to reject the vehicle as he said it wasn’t fit for purpose. He said this was because of cosmetic reasons and that the car had been painted badly and
apparently had all sorts of problems with it. With Lawgistics’ help, we put together the car’s PDI, pictures of the car and its MOT history to ensure that the customer did not have any valid claim to make. ‘Lawgistics hugely helped us in this case and made sure that we won it easily. In short, we absolutely destroyed the customer’s case in court thanks to Lawgistics’ advice.’ Reed Autos has also signed up to another service that Lawgistics offers – warranties. Drury said: ‘Its warranty service gives us a lot of control. It means we can handle some claims inhouse and anything we don’t want to touch can be dealt with at another garage. The online report system it offers is superb, too.’ Finally, he added: ‘If you need them, they are only at the other end of the phone or email, and you always get an instant reply. ‘They are very helpful.’
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Dragon2000’s dealer management system is one of the most versatile and easy-to-use products on the market. The software can help manage supplier and customer details, help you keep on top of your costs, and ensure that your business is running as smoothly and as profitably as possible. Car Dealer Club members are eligible for a 10 per cent discount on their first year of a Dragon2000 software subscription – and they get the free Vehicle Health Check app too.
Want to create your own mobile app but don’t know where to start? Then work with the app development company that has created Car Dealer Magazine’s successful apps. App Creatives is behind the highly esteemed Car Dealer iPhone and iPad apps. It’s an expert in app design and development, and the good news for Car Dealer Club members is that they get an exclusive 10 per cent discount on App Creatives’ services, including creating an app that’s perfectly tailored to your requirements by the firm’s experts.
At Paragon Car Finance, we’re so confident we can better the deals and improve the service other lenders offer that we want to give £50* to all eligible Car Dealer Club members who book an appointment with us to see how Paragon Car Finance could help you and your customers get a better deal. Book your £50* appointment now by calling us on 0345 149 7777.
A
LAWGISTICS’ Basic membership – which you receive as a member of Car Dealer Club – is a cracking deal, but what if you need something that has extra clout? Larger dealer groups or a dealer embroiled in a big legal battle may require some more firepower, and the good news is that club members get discounts on Lawgistics’ other packages. You’ll receive a £100 discount off the Small Business package (normally £695) – perfect for sole traders, a partnership or a small dealer group – and £250 off the Professional package (normally £1,295). This is ideal for franchises, a dealer group or a car supermarket and covers all relevant legal areas and documentation. There really is a package for everyone with Lawgistics.
EASY STEPS TO JOIN 1. GO TO CARDEALERCLUB.COM 2. HIT SUBSCRIBE 3. FILL OUT YOUR PAYMENT DETAILS ON PAYPAL AND HIT SUBMIT 4. WAIT FOR YOUR CAR DEALER CLUB PACK TO ARRIVE IN THE POST OR PHONE 023 9252 2434 AND SPEAK TO ONE OF THE CAR DEALER TEAM
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Data file.
Thestatistics
| SMMT SALES DATA | TAKING STOCK |
SMMT sales data Nov/year to date
5
EIGHTH MONTH OF DECLINE
Diesel demand drops by 30 per cent as UK’s new car market shrinks again T
he UK new car market declined for an eighth consecutive month in November, according to figures from the Society of Motor Manufacturers and Traders (SMMT). A total of 163,541 vehicles were registered, down 11.2 per cent yearon-year, driven by a significant fall in diesel demand. Business, fleet and private registrations all fell in the month, down 33.6 per cent, 14.4 per cent and 5.1 per cent respectively. Registrations fell across all body types except specialist sports, which grew 6.7 per cent. The biggest declines were seen in the executive and mini segments, which decreased 22.2 per cent and 19.8 per cent respectively. Demand in the supermini segment contracted by 15.4 per cent. The alternatively-fuelled vehicles (AFV) sector, however, continued to make significant gains, growing 33.1 per cent. Petrol cars also saw a gain, though of a more modest five per cent. These increases could not, however, offset the heavy 30.6 per cent drop in diesel registrations. The decline follows months of confusion and
Top
Most-improved manufacturers in November
Chevrolet +100% MG +79% Maserati +31% Abarth
+25%
Bentley +22%
5
Bottom
speculation about the government’s air quality plans and its policies towards diesel cars. Overall, registrations have declined five per cent in the 11 months in 2017, with 2,388,144 cars hitting British roads so far this year. Mike Hawes, SMMT chief executive, pictured above, said: ‘An eighth month of decline in the new car market is a major concern. Diesel remains the right choice for many drivers. ‘The decision to tax the latest lowemission diesels is a step backwards.’ Chris Bosworth, director of strategy
at Close Brothers Motor Finance, said: ‘Whilst dealers and manufacturers alike are starting to feel the pressure, it is an opportunity to increase competitiveness through innovation and flexibility. The Chancellor’s autumn budget highlighted the government’s support in developing the infrastructure for electric cars. ‘Dealers should be given support to embrace changes in both consumer buying behaviour and government policy, and ensure they have the right cars on their forecourts.’
Worst-performing manufacturers in November Lotus
-61%
Jeep
-52%
Fiat -43% Smart
-42%
DS -38%
Great opportunities for used car dealers – but what was the chancellor thinking? NOVEMBER’S SMMT figures received a mixed reaction. Richard Jones, pictured right, the managing director of Black Horse, which is one of the UK’s leading motor finance providers, said: ‘These figures show the new car market continues a trend of moving to a more sustainable position. ‘This further correction in sales will be beneficial for the market in the long term and runs counter to recent concerns around the 106 | CarDealerMag.co.uk
influence of a potential oversupply of vehicles on used car values.’ Nathan Coe, Auto Trader chief operating officer, said: ‘Whilst the new car market is slowing, there remains great opportunity within the used car market – a market that is three times larger than that of the new car market.’ But Simon Benson,
director of motoring services at AA Cars, said: ‘The SMMT warned last month that if the government failed to intervene, the new car market would continue to suffer, and sadly that proves to have been the case. Anyone holding out for a confidence boost from the Budget will have been sorely disappointed, as the chancellor’s statement only served to further exacerbate the problem.’
Land Rover
Ford
+18%
Marque
November 2017
November 2016
2017
2016
% market share
Abarth
366
Alfa Romeo Aston Martin Audi Bentley BMW Chevrolet
-17% Year-to-date (YTD)
% market share
% change
2017
% market share
2016
% market share
% change
0.17
3,690
0.15
12.98
0.16
25.77
4,169
324
0.18
20.68
4,693
0.20
4,589
0.18
2.27
91
0.05
-17.58
1,393
0.06
799
0.03
74.34
7.02
-6.49
164,311
6.88
165,985
6.60
-1.01
0.06
22.52
1,631
0.07
1,820
0.07
-10.38
8.33
-16.63
161,630
6.77
167,527
6.66
-3.52
0.00
100.00
66
0.00
4
0.00
1,550.00
0.22
291
391
0.24
75
0.05
12,077
7.38
12,915
136
0.08
111
12,781
7.82
15,330
2
0.00
1
Citroen
2,849
1.74
3,030
1.65
-5.97
49,275
2.06
60,338
2.40
-18.34
Dacia
1,466
0.90
1,405
0.76
4.34
24,166
1.01
24,608
0.98
-1.80
DS
530
0.32
864
0.47
-38.66
8,805
0.37
15,318
0.61
-42.52
Fiat
1,914
1.17
3,387
1.84
-43.49
42,830
1.79
56,652
2.25
-24.40
18,095
11.06
21,944
11.92
-17.54
271,855
11.38
297,575
11.83
-8.64 -8.14
Ford Honda
3,523
2.15
3,373
1.83
4.45
51,269
2.15
55,812
2.22
Hyundai
6,509
3.98
6,560
3.56
-0.78
88,377
3.70
86,794
3.45
1.82
Infiniti
204
0.12
194
0.11
5.15
3,456
0.14
2,813
0.11
22.86
Jaguar
2,654
1.62
2,905
1.58
-8.64
33,535
1.40
32,302
1.28
3.82
347
0.21
735
0.40
-52.79
6,119
0.26
13,277
0.53
-53.91
Kia
5,978
3.66
6,037
3.28
-0.98
89,449
3.75
85,576
3.40
4.53
Land Rover
6,241
3.82
5,278
2.87
18.25
78,467
3.29
74,567
2.97
5.23
775
0.47
931
0.51
-16.76
11,898
0.50
13,165
0.52
-9.62 -19.76
Jeep
Lexus Lotus Maserati Mazda
14
0.01
36
0.02
-61.11
268
0.01
334
0.01
124
0.08
94
0.05
31.91
1,576
0.07
1,285
0.05
22.65
2,091
1.28
2,521
1.37
-17.06
37,523
1.57
44,498
1.77
-15.67 0.00
52
0.03
0
0.00
0.00
544
0.02
0
0.00
12,065
7.38
11,382
6.18
6.00
170,543
7.14
159,608
6.35
6.85
MG
472
0.29
263
0.14
79.47
3,987
0.17
3,825
0.15
4.24
Mini
6,094
3.73
5,093
2.77
19.65
61,039
2.56
61,601
2.45
-0.91 -13.46
McLaren Mercedes-Benz
1,123
0.69
1,289
0.70
-12.88
14,865
0.62
17,178
0.68
Nissan
7,823
4.78
10,269
5.58
-23.82
143,397
6.00
141,897
5.64
1.06
Peugeot
5,073
3.10
5,868
3.19
-13.55
78,092
3.27
92,776
3.69
-15.83
Porsche
1,151
0.70
1,105
0.60
4.16
13,015
0.54
11,833
0.47
9.99
Renault
4,066
2.49
6,572
3.57
-38.13
65,916
2.76
79,044
3.14
-16.61
Seat
3,947
2.41
3,668
1.99
7.61
52,282
2.19
44,108
1.75
18.53
5,117
3.13
5,978
3.25
-14.40
73,325
3.07
74,715
2.97
-1.86
smart
527
0.32
921
0.50
-42.78
9,867
0.41
11,172
0.44
-11.68
SsangYong
234
0.14
245
0.13
-4.49
3,449
0.14
4,270
0.17
-19.23
Mitsubishi
Skoda
Subaru
216
0.13
219
0.12
-1.37
2,433
0.10
3,282
0.13
-25.87
Suzuki
2,526
1.54
2,347
1.27
7.63
38,014
1.59
35,903
1.43
5.88
5,953
3.64
5,854
3.18
1.69
96,797
4.05
92,104
3.66
5.10
Vauxhall
10,343
6.32
15,976
8.68
-35.26
181,834
7.61
233,881
9.30
-22.25
Volkswagen
13,985
8.55
14,351
7.80
-2.55
193,117
8.09
191,394
7.61
0.90
Volvo
3,068
1.88
4,072
2.21
-24.66
42,944
1.80
42,960
1.71
-0.04
Other British
53
0.03
103
0.06
-48.54
655
0.03
770
0.03
-14.94
Other Imports
511
0.31
169
0.09
202.37
5,268
0.22
3,115
0.12
-11.17
2,388,144
Toyota
Total
163,541
184,101
2,514,764
69.12 -5.04
Figures supplied by SMMT
CarDealerMag.co.uk | 107
Welcome to your
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Vision. Partnership. Passion. 108 | CarDealerMag.co.uk
Market Insight.
...in association with ASE-global.com
Not a November to remember.. with challenging times ahead Tough trading conditions mean dealers will find it difficult to tread water in the new year, says Adam Cottam
N
ovember was another difficult month for UK motor retail share values, as most struggled to hold on to their October closing prices. Cambria released its results for the year ended August 31, 2017, which were solid but showed signs of the new car market softening. In transaction activity, Marshall disposed of six poor-performing sites and its leasing business to improve the cash position on the balance sheet and settle a pension liability. Share price performance As we’ve said, share prices struggled in November, with most not managing to hold their price from the month before. November is a notoriously quiet month for dealers, with the majority doing their best to hang on to the profits they made in the first three quarters. In the wider economy, we saw the first interest rate rise for a decade, which may eventually affect rates available to customers buying new cars on PCP, a product that has helped new car registrations grow in recent years. Recent reports show UK manufacturing is strong, which has been driven by the weaker pound, making our exports more competitive in the overseas market. It would seem the worst of the exchange rate-led inflation has already been felt, and so
Share price movement from Jan 3 to Nov 30, 2017
Share price movement from Jan 3 to Oct 31, 2017
Pendragon
83.2%
80.8%
Vertu
109.2%
103.4%
Lookers
83.4%
89.6%
Inchcape
106.3%
111.3%
Cambria
104.2%
111.7%
Caffyns
81.0%
86.7%
Marshall
116.7%
116.3%
inflation is expected to fall more in line with the government’s target in the coming months. In the Budget, economic forecasts were revised down, however, so there is some caution with regard to the state of the nation’s finances. This might affect consumer confidence and in turn result in fewer people buying new cars. Used cars and aftersales will therefore be key to maintaining profitability in the coming months. Financial performance Only Cambria released anything performancerelated in the month of November, as its audited primary results were published ahead of the annual meeting.
The results for the year ended August 31 were solid, although operating profit was down 4.8 per cent on last year and PBT was 4.2 per cent behind. New sales were 11.7 per cent down, although this was offset by an increase in profit per unit of 25.7 per cent. Similarly, used sales were down 6.1 per cent, offset by an increase in profit per unit of 5.6 per cent. Aftersales revenue was nine per cent ahead of last year. In the commentary by CEO Mark Lavery, post-year-end trading results were in line with expectations but behind last year because of the weaker new car market. This is more evidence that the market is softening, meaning challenging times ahead for motor retailers. Transaction activity It was very quiet in November for the listed retail groups. Marshall disposed of its leasing business, as planned, and also closed six of its poorest-performing sites. The funds from these disposals were used to reduce net debt and settle a £1m pension liability. The closing of the sites was another sign that trading conditions are tough in the market, and ASE expects more transactions to take place in 2018 as dealers – particularly those without scale who are inevitably trading at thin margins – find it more difficult to tread water.
Adam Cottam is corporate finance executive at dealer profitability specialist ASE plc. You can read his column here every month. CarDealerMag.co.uk | 109
Auctions.
All fired up for festive fun and revenge
Confessions: p117
Silverstone revving up Henstock for Race Retro 2018 Accurate valuation builds QUALITY CALL
AUCTION STATIONS
S
pecialist auction house Silverstone Auctions is after quality consignments for its first sales of the new year, taking place at Race Retro from February 23 to 25 at Stoneleigh Park in Warwickshire. It said it was seeking the finest, best-ofbreed cars for both a dedicated competition car sale as well as a two-day classic and sports car sale. The 2018 sales will follow record results for the auction house at Race Retro 2017, when £5.7m changed hands from 76 per cent of cars on offer selling, making it the highest result at the show for Silverstone Auctions in six years. Highlights of the 2017 sale included a 1974 Ferrari Dino 246 GT, pictured, which sold for £439,875, nearly £140,000 above its lower estimate, and a 1961 Emeryson Formula 1 Climax FPF (FIA) – the last
surviving example of just four ever made – which sold for £174,380. Nick Whale, managing director of Silverstone Auctions, said: ‘Race Retro is Europe’s premier historic motorsport show and we’re delighted to be returning for yet another year with three days of auctions and, no doubt, some very special road and race cars for sale.’ The international show saw a record number of 21,000 visitors in 2017 and promises an even bigger and better event in 2018. ‘In today’s market, quality is fundamental, so we are looking for iconic and rare cars, ideally in exemplary condition with low mileage and low ownership. The show is a fantastic platform for those looking to sell a classic or race car, so we’d encourage anyone looking to submit an entry to contact us sooner rather than later,’ said Whale.
Ancaster Group and BCA renew deal BRITISH Car Auctions has renewed an Hyundai. Managing director Stephen exclusive remarketing deal with Ancaster Wood said: ‘We have enjoyed a long Group for another two years. working relationship with BCA, and over The contract will see around 2,000 cars a that time they have continued to deliver year sold at BCA Paddock Wood in Kent. excellent results and a seamless service.’ Ancaster is one of the largest familyAlan Dyer, national account manager owned dealer groups in the south-east of at BCA, said: ‘We are delighted to have England. It operates 13 dealerships across renewed this deal with Ancaster Group, eight sites and represents Nissan including which reflects the excellent working Car dealer new strip ad 3/16 26/9/16 14:32 Page 1 GTR, Fiat, Abarth, Alfa Romeo, Jeep and partnership we have developed.’
THE FLEET AUCTION GROUP - THE UK’S
N1 O
TRADE ONLY AUCTION
confidence for customers
W
ith fewer customers stepping through dealership doors these days, it’s important for dealers to be able to offer a quick and efficient valuation process on a part-exchange vehicle. It’s also important that this doesn’t add to the proliferation of systems that a dealer is expected to use but fits in seamlessly with existing systems and processes. There are huge benefits from getting the appraisal of a vehicle right the first time. It’s important to make sure that customers think and appreciate that they are getting the best value for their car. Dealers who present a professional, transparent and trustworthy process to their customers when managing the part-exchange process have a huge advantage when it comes to closing the deal. BCA Dealer Pro is an easy-to-use cloud-based car appraisal tool. Using a simple guided process to appraise, image and then accurately value part-exchange vehicles, Dealer Pro captures all the information needed that allows deals to be done with confidence. Once the car’s information is entered into the system, BCA Dealer Pro can offer market values to the user, allowing them to relay accurate and dependable prices back to the customer. For non-retail stock, Dealer Pro has already captured all the information needed to start the remarketing process. Vehicles can then be sent directly to the BCA online catalogue straight from the device. Should another dealership within the group spot a car uploaded to Dealer Pro they’re interested in, they can get in touch and offer a deal – all in real time. This means that while the customer is still in the building, two deals can take place. The customer gets a fair price for their car, and the resulting non-retail part-exchange is quickly and efficiently traded with another dealership that can retail it. Choosing the right tools helps to ensure a consistent approach that will drive sales, build customer confidence and help to close deals profitably.
Simon Henstock is BCA UK’s chief operating officer for remarketing. Visit bca.co.uk or call 0845 600 6644.
Purpose built 12 acre auction complex Central UK location Fixed cost buyers premium Fleet Car Sales every Monday & Thursday at 10am Collection of vehicles 24 hours a day, 7 days a week Excellent variety of weekly stock from premium sources Regular Top Car Sales. Vans, Truck & Plant every week Enclosed and heated auction halls and viewing area All new website & stock locator. On-line bidding The UK’s finest auction restaurant Call for account application
The Fleet Auction Group Ltd., Stephenson Industrial Estate, Coalville, Leicestershire LE67 3HG Telephone: 01530 833535 Email: info@fleetauctiongroup.com www.fleetauctiongroup.com 110 | CarDealerMag.co.uk
Taking Stock. Remarketing specialist BCA analyses its latest Pulse report to give its thoughts on matters that dealers need to consider in the months ahead
A different-looking model mix as values come under pressure High volumes of availability meant greater choice for buyers in November, says Stuart Pearson, managing director of BCA’s UK remarketing operation
A
verage used car values rose during November, with the headline figure climbing by £40 (0.4 per cent) to £9,404 – a record value for the third month running. However, a change in model mix was largely responsible for the increase as BCA handled a larger percentage of higher value corporate stock during November than the previous month. Year-on-year, the headline figure was up by £773 – the same figure as last month and 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 cars available at BCA over the past 12 months. Buyer demand was strong for good-quality stock, but with volumes remaining high, there was pressure on values for poorly presented, higher mileage vehicles. Values for fleet/lease and dealer part-exchange
vehicles fell back by £213 and £38 respectively, but remained at near-record levels, reflecting the longer-term trend BCA has been reporting throughout 2017. Nearly-new vehicle values improved during November. Looking at the detail shows there was some pressure on values as high volumes of availability meant greater choice for buyers, with attention focused on the best examples and highdemand models. Ready-to-retail cars continue to attract the buyer’s attention and churn quickly, but poorer condition, older and higher mileage examples need to be accurately appraised and valued in line with market expectations if they are to be sold first time. Average values remain at near-record levels in the fleet and lease sector, but fell by £213 (1.9 per
Headline average value of a used car:
£9,404
cent) to £10,643 during November following four consecutive monthly improvements. Retained value against original MRP (manufacturer’s retail price) fell by nearly a point to 42.3 per cent. Year-on-year values were up by £620 (6.0 per cent), as both average age and mileage continued to reduce. Average dealer part-exchange values also fell, by £36 to £4,702 during November. Once again, looking at the longer trend, values have climbed steadily during 2017, with average age and mileage remaining consistent. Year-on-year values were ahead by £103, equivalent to a 2.2 per cent uplift. Values for nearly-new vehicles rose in November, from £17,853 to £18,445. Model mix plays a big part in this very low-volume sector, with brand-specific winners and losers.
Dealer partexchange values:
£4,702
CarDealerMag.co.uk | 111
A Global View.
...in association with
Ignore the worldwide rise of millennials at your peril David Green, CDK Global vice president for sales and marketing, discusses how the growth of millennials as a buying sector and their use of technology is reshaping the global automotive retail industry
T
he influence of millennials is growing in major markets around the world. The demographic of young adults aged 18 to 34 spans the digital revolution. Having grown up with the internet, they are highly reliant on information from digital devices to inform purchasing decisions. In France, Germany and the UK, millennials make up around 15 to 20 per cent of the population, while in the US the demographic now represents a quarter of the population, responsible for $200 billion of annual spending. The generation game For Generation X, who grew up in the late 1950s and early 1960s, traditional values such as retailer loyalty and customer service remain important. Millennials differ from this – they have grown up in a technological revolution and want to contact retailers via digital channels, including email, social media and instant chat services – and expect an instant, personalised response. Unlike their predecessors, millennials are often ‘numb’ to blanket advertising. Dealerships need to acknowledge that this demographic has a different world view and way of choosing what they buy. For example, more than 60 per cent avoid purchasing big-ticket items with credit and loans, preferring flexible financing and trade-in options to pay.
Behavioural differences Research by CDK Global shows that within the millennial demographic, there are clear distinctions of behaviour. Older millennials respond to both modern and traditional marketing approaches, reacting more to lifestyle changes and possessing a higher degree of brand loyalty than their younger counterparts, of whom 58 per cent are swayed more by social status. For all millennials, buying goods has to be easy. Ninety-three per cent cite convenience as their main buying criterion, with search engines (98 per cent), independent review sites (93 per cent) and word of mouth (88 per cent) the biggest influences on their car-buying choice. In emerging markets, CDK Global has witnessed the growth of a ‘leapfrog’ generation. In China, India and Africa for example, consumers are now more inclined to shop online for clothes and food – and increasingly for cars. This confidence in purchasing online is fuelled by faster internet speeds and access to mobile devices, digital payments and comparison websites. Millennials are a pioneer generation – high risk-takers, not relying on their instincts and traditional purchase methods. Change the dealership approach Millennials typically create a shortlist of three to four cars they want to buy, using information
gathered from predominantly digital channels. They will then search for local dealerships to arrange a test drive, checking the online ratings for word-of-mouth recommendations for the quality of a dealership and service levels. Younger millennials find ‘being sold to’ uncomfortable, which can work against a dealer as 85 per cent say they prefer an advisory approach. CDK Global’s research shows that 95 per cent of millennials are put off a purchase by a lack of knowledge of their requirements by a dealer. They are the ‘now’ generation, with 63 per cent expecting immediate delivery, frustrated by waiting times and excessive paperwork. The millennial is potentially a very fickle customer, so dealers need to be digitally aware and adaptable to new technologies to retain these customers for the future. As an enabler of end-to-end automotive commerce, CDK Global uses its global knowledge and local insight to map out all eventualities across the customer journey. For example, to help dealers understand more about their customers’ needs, CDK partners with certain vehicle manufacturers to integrate the DMS with online car configurators, providing a seamless transition from online to showroom. Knowing a customer’s likely preferences before they set foot in the dealership is a big step towards delivering the experience millennials demand.
David Green joined CDK Global in September 2013 as vice president of sales for automotive retail international (ARI). He is responsible for sales strategy and execution and works closely with general managers and sales directors around the world to help direct and focus CDK Global’s sales efforts. 112 | CarDealerMag.co.uk
Real Deals.
IN ASSOCIATION WITH
Why drive like a saint in a fab S2000?
This car scores exceptionally well in the power and reliability stakes
The best engine in the world isn’t a behemoth – it’s an inline four cylinder, says ADAM WELLER
W
hen it comes to convertible sports cars, there are different schools of thought as to what ingredients are needed for the perfect recipe. Do you need bucket-loads of power, or is a buzzing, low-powered four-pot adequate? Does it need to be big and luxurious, or should it be compact and agile? Does the engine necessarily have to go in the front? With so many different routes to go down, we imagine that developing such a car makes for some intense meetings in manufacturer board rooms across the world. While there are plenty of good sports cars out there, we do wonder whether anyone in those meetings will ever be able to top the Honda S2000. We honestly can’t see it happening. The S2000 managed to combine the nimbleness and looks of Mazda’s MX-5 with lots more power and an iconic soundtrack. While the car’s styling has aged well, and its perfect 50/50 weight distribution means it will always be a fun drive, it is the engine that has always stolen the headlines. While a 2.0-litre inline four-cylinder doesn’t sound like a ground-breaking concept, the reality
of having this motor underneath your right foot is something special. This is not an engine for eco runs – it revs to 9,200rpm, and if you’re on a B-road blast, you really ought to be fairly high up that scale to squeeze the best out of it. In other words, if you get more than 30mpg, you’re driving like a saint. But why would you feverishly watch the fuel gauge in this car, anyway? With a sound comparable to a Ford Escort rally car, and a digital rev counter that gleefully darts to the right as you take in more RPM, heavy acceleration in the S2000 is addictive. Perhaps more impressive than the S2000’s performance is its reliability. Honda’s VTEC engines have always been renowned for their sturdiness, and the four-pot in the S2000 doesn’t let the side down. Despite the unenviable task of getting into its prime torque band at the point where some engines run out of breath – somewhere around 5,000rpm – there has only been one reported engine failure for the S2000, which, lest we forget, debuted in 1999. The chassis dynamics are often forgotten amid all the hyperbole regarding the engine – as they are here – but that really shouldn’t be the case. The ‘X-bone’ frame that forms a significant part of the chassis does wonders for the stiffness of the car, and the engine sits entirely behind the front axle, hence the car can lay claim to a 50/50 weight distribution and the poise that comes with it. Plenty of cars have exciting engines; not all can claim to have a chassis that can keep up.
Fortunately, the S2000 does not have that problem. The example on this page is one of the early cars from 1999, and is for sale at Ridgway Cars in Romsey, Hampshire. At 47,768 miles, it hasn’t seen that much use for an 18-year-old vehicle. In the last two years, S2000s have gradually crept up in value. At £8,795, this particular car is somewhere in the middle of the market, but it has the asset of being uniquely low-mileage compared to other Pre-2004 ‘first-generation’ examples. The S2000 lasted a decade, with the final cars rolling off the production line in 2009. The recipe was gently fettled over the years, with the 2004 model year seeing changes that improved the cars’ steering feel as well as other elements. So is this a troubled early attempt? No. Sure, it is not the most precise sports car, but calling it bad would be a flat-out lie. The later cars are nearly perfect; the early cars have to make do with ‘only’ being very good. Furthermore, if you were to purchase a second-generation example with an equivalent mileage to this car, you’d come uncomfortably close to doubling your money. There is no way that the early examples are inferior to that extent financially, so this is the direction we would go in if we were in the market for an S2000.
This is the direction we would go in if we were in the market for an S2000
CarDealerMag.co.uk | 113
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BRISTOL STREET MOTORS
Data provider appoints new chief product owner
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New general manager named BRISTOL Street Motors Ford Bolton has appointed Lee Swindells, above, as its new general manager. Swindells, 43, from Stockport, brings to the role 26 years’ experience in the motor retail industry, working exclusively under the Ford brand. He replaces Darren Murray, who has been promoted to become Ford regional director at Bristol Street Motors. Ford Bolton has had a significant £3 million ploughed into it by Vertu Motors, with work including an upgrade of its FordStore, a larger showroom and a new workshop. Swindells said: ‘The dealership has a prominent presence in the area, even more so following its recent refurbishments. ‘When I became aware of the new position, I jumped at the chance to join the team.’
rusted global partner and data provider for the insurance industry, Audatex, has announced the appointment of Tom Jackson as its new chief product owner. Jackson has worked in the automotive industry for more than 12 years, bringing with him a thorough knowledge of the sector to Audatex. Throughout his career, he has focused on digital data software platforms and product transformation. He holds extensive experience in managing product portfolios, collaborating with multiple stakeholders for international organisations and leading development teams. Jackson, pictured, joins Audatex at an exciting time following a surge in product innovation. This includes the recent completion of a major upgrade to its Audaenterprisegold vehicle damage assessment and estimation system. Several further industry-changing products are
WE’RE HIRING
also in the final stages of development. Jackson’s main role will be to head-up Audatex’s core motor claims insurance portfolio and service offering for the repair industry. He will also manage the overall development and implementation of products that will ensure Audatex continues to meet its customers’ needs in an always challenging market. Audatex’s adoption of Agile software development methods is a core focus for Jackson, whose mission is to ensure the efficient development and launch of new products for customers, working closely with them at every stage. This is being utilised currently with updates that will ensure Audatex’s solutions are GDPR-compliant, ahead of the legislation’s introduction in 2018. Jackson said: ‘The automotive industry is going through an unprecedented and exciting period of change and I’m delighted to join Audatex when it’s at the forefront of this transition.’
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jobs@clickdealer.co.uk CarDealerMag.co.uk | 115
Data file.
James Litton
TRADER TALES
Specific kind of customer relations will yield top crop
I
f you are a connection of mine on LinkedIn, you’ll have noticed my irrational hatred of corporate jargon. The bee in my bonnet at present is referring to customers as ‘guests’, and one phrase I hate the most is ‘low-hanging fruit’ – particularly in the context of finance renewals. If you’ve ever sold a car, you will have no doubt sat through a presentation from a finance house or software company, both pedalling computerised renewal programmes, spouting anecdotes from the ’90s about how easy it was for Ford sales people to appoint an existing finance customer with the line: ‘What if I told you it is possible for you to drive in the old car and drive out in another with no more money down and the same payment? No brainer Mr/Mrs Customer!’ Apparently, according to the wise old sages telling these tales from mystical times, customers (or ‘guests’, if it suits your trendy culture) were falling over themselves to buy a new Ford Escort. Something happened between the days of swapping one Ford Orion for another. Renewals got difficult, and I’d prefer to think of renewals as dairy farming instead of fruit picking. Growing up in Somerset, I have a lot of friends who are dairy farmers. Their families have been doing it for generations but it is a thankless task. With the milk price depressed, the capital-intensive nature of it makes it a labour of love. One of the key misconceptions of renewals is the idea that a customer wants to change from their current model to another of the same. There is less brand loyalty than ever for a start, but residual values dictate that if a customer wants to change early, they’re unlikely to want to dig into their pockets for thousands of pounds to change for the same car at the same payment. This is even with the dealership sacrificing most of their margin and any available additional support. The irrefutable statistic that typically people with a 36-month PCP change at 30 months (or earlier in some cases) has created a hysteria around renewals that forces retailers to adopt behaviours you wouldn’t see from a ‘normal’ deal, namely bigger discounts and brave part-exchange prices. I spoke to a DP recently who wouldn’t be able to make their trimester used car bonus through a failure to purchase enough cars from his brand – his forecourt is log-jammed with renewal cars. To continue the farming metaphor, renewals should be farmed organically and not by genetic modification. Love customer, contact customer regularly (but not too much) and you will find a crop that is both sustainable and lucrative.
‘Renewals should be farmed organically and not by genetic modification.’
James Litton is general manager – director of Volvo Cars Poole. He always has something to say about the industry he loves. 116 | CarDealerMag.co.uk
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Festive fun and revenge thanks to tiresome punter
C
hristmas is supposed to be the season of goodwill but one customer springs to mind who a forensics expert would have had trouble finding an ounce of festive cheer within and certainly tested ours. He breezed into our showroom a couple of hours before we were due to close for our Christmas break and was the absolute epitome of ‘Bah, humbug!’ Not a pleasant fellow at all. There was a great exchange in that timeless, peerless US sitcom M*A*S*H, with a particularly odious character’s line ‘Why does everyone take an instant dislike to me?’ being met with the laconic retort ‘Because it saves time.’ Genius! And that’s probably the best way of summing up this charmless specimen. ‘Full of himself’ didn’t even come into it. It wasn’t just the planet that revolved around him as far as he was concerned, oh no – the entire universe seemed to exist purely for his benefit. He was interested in buying a certain 4x4, but to say that he stretched my patience with inane questions and demands would be putting it mildly. Of course, I maintained a veneer of smiling politeness, but quite frankly we’d all well and truly smashed our targets and I just wanted to be rid. And then an idea formed in my mind – one that might even kill two birds with one stone. There was a dealership a few miles’ drive away that had been something of a thorn in our side. Basically, they’d taken advantage of our helpful nature once too often and they’d seriously ticked us off. On the pretext of checking some information, I nipped into the back office for a couple of minutes then came back out and told the bloke I’d had the car dealer equivalent of an epiphany (I was really getting into the seasonal spirit). I told him that if he went to (name omitted for obvious reasons), I was sure he’d find exactly the right vehicle. This was pre-sat nav days, so I gave him directions – which may or may not have ‘accidentally’ included ‘turn right’ instead of ‘turn left’ and vice versa a few times – and he dashed off, eager to stake his claim. If he ever found them they’d be stuck with him – but I like to think that he never actually got there and instead drove round and round, getting increasingly lost and frustrated. Childish, you say? Perhaps. But it was all quite harmless, and certainly sent me into the Christmas holidays with a ho ho ho!
‘If he ever found them, they’d be stuck with him.’
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 | 117
Key Notes.
...in association with Traka
Choppy waters of change The twin revolutions of EV and AV adoption are set to transform the UK car market, says Paul Smith
T
he next 10 to 15 years will see the biggest change in the automotive sector since the invention of the combustion engine. We will witness the collision of two seismic shifts which are feeding off each other and together stimulating a move away from internal combustion engine (ICE) powered vehicles. The growths in the sales of electric vehicles (EVs) and autonomous vehicles (AVs) are both stimulated by ever more ambitious green energy targets which are ratcheting up taxes on petrol and diesel vehicles and leading to the imposition of outright bans on the sale of ICE-powered new cars by 2040 (as already declared by the French and UK governments). However, estimates of the speed of EV penetration vary wildly. BP forecasts that up to 200 million vehicles (of a total two billion) on the road will be EVs by 2035. Exxon estimates half that number by the same date. Goldman Sachs predicts 6.3 million annual new EV sales by 2030, 4.3 million of which will be in China. Bloomberg New Energy Finance predicts EVs will command more than half (54 per cent) of the entire new vehicle market by 2040, equalling 525 million units. And EVs will make up more than a third of all vehicles on our roads by that date, claims the media and research goliath. Most pundits reckon cost parity between EVs and fossil fuel-powered vehicles could come as early as 2022 as battery performance improves and pricing falls. If China makes good on its ambitions to dominate battery technology innovation, it could accelerate EV adoption still further. ‘Big oil’ is so worried that it is investing heavily in alternative energies and battery technologies itself. Total invested $2.5 billion in battery and solar companies in 2016, while Shell is diversifying into building offshore wind farms.
But EV growth is operating from a very low base right now so there is no cause for UK dealers to panic just yet. In 2016 only 750,000 EVs were sold worldwide, 80,000 by the direct model innovator Tesla, so EVs make up only 0.2 per cent of total new cars being sold globally right now. That said, the first half of 2017 saw EV sales up 29 per cent, compared with the same period in 2016. The rise of autonomous vehicles (AVs) will stimulate EV adoption as will so-called ‘ride sharing’ services including car-sharing, carpooling, peer-to-peer rental and ‘e-hailing’ taxi alternatives. Players in the car-sharing services market in Europe include Daimler with their snappily-titled service Car2go. There is talk of Car2go merging with BMW’s own car-share service called ReachNow. All the while, US-based car-sharing service providers Lyft and Uber are threatening to up their game in Europe. A relative new kid on the car-sharing block is GM with its Maven ‘Gig’ service targeting the freelance ‘gig economy’ workers on the west coast of the US initially. The service gives gig workers the ability to rent cars for as little as a week at a time, with an all-in cost that covers insurance, maintenance and free charging for EVs. Meanwhile, industrial fleets are proving to be early adopters of AVs, particularly in the
mining, farming and warehousing sectors where automated excavators, forklifts and loaders are already in wide use. The year 2040 will see the first AV lorries on our motorways. Companies are currently developing the algorithms needed to handle complex driving situations. Automated commercial fleets will need to be supported by automated drones and smaller AV fleets for ‘last mile’ delivery. Multiple players including Amazon are already testing these offerings and planning logistics around them. Franchise dealers should look at what the plans of their OEMs are in areas such as internet/direct selling, EV and AV innovation, car-sharing and other mobility services. If they have articulated their long-term plans in these areas, how are they planning to help dealers make the transition to support the new types of vehicles? Are they seeking to take dealers with them? Given the safety-critical nature of AV technologies, customers will be inclined to adhere to manufacturers’ service processes, using original service equipment for maintenance and repair. Independents will thus be disadvantaged. Further, according to management consultancy firm McKinsey, nearly 60 per cent of customers will follow their manufacturer’s recommendations for service locations when that error or maintenance message pops up. OEMs will be strongly incentivised to service their own AVs because regulators could force them to take on the lion’s share of responsibility and risk associated with future crashes caused by AV technical failure. So, there’s lots to think about over the next few years for dealer principals and heads of business. However, one solution must be to keep close to your OEMs – partnering with them to ensure you help them, and thus your customers, navigate the choppy waters of change ahead.
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 118 | CarDealerMag.co.uk traka-auto 1-6pg.indd 1
15/12/2016 09:56
Long-termers. LATEST FROM THE FLEET...
BMW M240i Will our Melbourne Red coupe new arrival turn out to be the perfect daily driver that it’s claimed to be? by DARREN CASSEY @DCassey
I
’ve always thought the BMW 2-Series might be the perfectly sized car for modern life. It’s small enough that you can relax while driving it even on tight, congested British roads but big enough that you can fit friends and family in the back with plenty of luggage space in the boot. And the peach of the range should, theoretically, be the M240i. Cheaper to run than the fully performance-focused M2 but with enough poke to make the most of your favourite back road, it makes a lot of sense on paper. So when BMW offered up the opportunity to run one for six months I jumped at the chance. And that’s how I ended up as the temporary custodian of YJ67 XRR – a Melbourne Red M240i. The loan period takes in the Christmas holidays and new year, when the weather is at its worst and the title of ‘perfect daily driver’ will really be earned. First impressions are good, too. Under the bonnet sits a 3.0-litre six-cylinder petrol engine that’s largely devoid of character but is very linear in its power delivery. The noise is raspy but wholly synthetic – only time will tell if this starts to grate. With 335bhp and 500Nm of torque on tap it’s plenty fast enough, and if you get on the power too early in a corner the rear tyres will scrabble for grip. This is, for the most part, very good fun. I’m not usually a fan of red cars but this deep shade – a £550 optional extra – really suits the 2-Series’ curves, while the interior is spacious, comfortable and feels every inch as premium as you’d expect a BMW to feel. The base price for the car is £34,835, but our tester comes in at just under £40,000 thanks to a raft of extras. At £1,600, the automatic transmission is the priciest option but a welcome one. Despite purists loving manuals for making you more involved in the driving experience, BMW’s gearboxes are traditionally unsatisfying to use. The auto, on the other hand, is quick-witted, slick-shifting and therefore very welcome. At £775, we have the professional media package, which includes satellite navigation, online entertainment and ‘remote service’, which
Seeing red and loving it – this coupe feels every inch as premium as you’d expect from BMW
THE KNOWLEDGE Model: Price: Engine: Power: Torque: Max speed: 0-60mph: MPG (combined): Emissions: Mileage to date:
BMW M240i £39,240 3.0-litre six-cylinder 335bhp 500Nm 155mph 4.6 seconds 40 163g/km 1,127
THIS MONTH’S HIGHLIGHT: Getting a feel for the coupe on late-night blasts and winding country roads. gives you the ability to control vehicle functions from your mobile phone without being beside the car. This should prove welcome for pre-heating the M240i in the winter. Other options include sun protection glass (£290), folding electric wing mirrors (£275) and high-beam assistant (£150). Our car also has 18-
inch Orbit Grey alloy wheels – a £175 option that look great but, incredibly, appear quite small in the arches. Not long ago, alloys that size would have looked massive on a small coupe – proof cars are getting bigger? There is one glaring omission in all this, though. A speed limiter is included as standard, but you have to pay £360 extra for cruise control – something that really shouldn’t be the case on a premium sports coupe. Everything comes with this technology nowadays and it’s been around for years, so surely BMW doesn’t have to recoup development costs from the consumer any more? Especially in a £35k-plus car… That minor irritation aside, the M240i has quickly settled into life as a do-it-all daily driver. From gridlocked commutes to late-night blasts through winding country roads, it’s proved an excellent companion. And with forecasters predicting an extra-cold December, it’ll be fun to find out what this rear-wheel-drive coupe is like when the roads get a little bit icy… CarDealerMag.co.uk | 119
Long-termers. LATEST FROM THE FLEET...
Volkswagen Amarok Another welcome addition to the fleet – and this one brings go-anywhere capability with it. by JACK EVANS @jackrober
I
t’s new car time once again, and as you can see, it’s quite a large addition to the fleet. ‘My’ previous car was a Caterham Seven 310S, which is really rather small. This Volkswagen Amarok, however, isn’t. Nearly 40,000 pick-ups were sold in the UK during 2016 alone, which shows just how popular they are. Because of this, we thought it’d be interesting to see how one would be to live with over six months. So, what have we got here? Quite a lot, in fact. This latest-generation Amarok has been designed to be the most car-like pick-up available, offering plenty of refinement as well as go-anywhere capability – two aspects that don’t often go hand in hand. Underneath that large, squared-off bonnet sits a 3.0-litre turbocharged V6 diesel engine. It produces – get this – 221bhp and 550Nm of torque. That’s a huge amount of power for a pick-up to have, which means the Amarok can get to 60mph in under eight seconds – and it feels a whole lot quicker than the figures show. So far, I can scarcely get my head around how quickly this thing fires itself down a straight. Elsewhere, initial impressions are just as good. The overall build quality is excellent, with the cabin feeling well made and solidly put together. Our Amarok comes with the optional Discover Navigation System and, though offering a smaller screen than is customary in cars on the market today, it operates smoothly enough and is easy to
THE KNOWLEDGE Model: Volkswagen Amarok Highline Price: £ 41,971 Engine: 3.0-litre V6 diesel Power: 221bhp Torque: 550Nm Max speed: 119mph 0-60mph: 7.8 seconds MPG (combined): 34.9 Emissions: 212g/km Mileage (to date): 482 THIS MONTH’S HIGHLIGHT Getting used to driving something as large as this around. 120 | CarDealerMag.co.uk
Jack picks up the Amarok from sales manager Tim Terweeks – and it’s soon used for a move!
navigate. Connecting your phone is a breeze, too. It’s comprehensively worth the extra £672. Other options added include a towbar (£360), 19-inch alloy wheels (£510) and Ravenna Blue metallic paint (£648). This adds up to a pick-up that really does look special, though at a price – £41,971, to be exact. It’s a lot of money, that’s for sure, but then it’s a lot of truck. It certainly looked imposing enough when it was collected, despite being parked next to a series of other vans and trucks at the Breeze Van Centre in Southampton. What has this Amarok got in store? Well, it’s already been pressed into action for a house move, and it’s likely to be thrown into full Christmas tree-lugging duty as well. I’m certain the Amarok will also see some offroading at some point, while its permanent fourwheel-drive system is bound to come in handy as the temperatures plummet. So far, economy isn’t too bad either. I’ve been seeing around 31mpg during general driving – which isn’t too far off Volkswagen’s claimed 34.9mpg combined figure, and certainly not bad for a vehicle that isn’t quite run in yet. I’ve also noticed that the Amarok features a gargantuan 80-litre fuel tank. Its claimed range is
around 450 miles, which isn’t too bad, though I’m not looking forward to the close-to-£100 full-tank fill-ups. Glug. All in all then, it’s shaping up to be a good six months with the Amarok. I’m more than certain that it’ll prove to be the perfect adventure car, and I can’t wait to take it here, there and everywhere in between.
OTHER CARS WE’RE DRIVING
Suzuki Swift Mileage: 8,844 Blackball Media head of TV Cheryl is impressed by the Suzuki Swift’s style. As stylish on the outside as it is on the inside, it really is a pretty impressive compact vehicle that holds its own on the road.
Mazda MX-5 RF A free weekend provided the perfect opportunity to give the convertible the drive it deserved. by RYAN HIRONS @RyHirons
W
e’re approaching 10 months with ‘our’ little Mazda now. During that time it’s served the office well as a person hauler but it’s been in dire need of some spirited driving – the way the JDM gods intended. Well, the chance for that came one damp Saturday afternoon, with the Mazda in my possession for a weekend and no plans. Now was the time for some real driving. Where, though? Still relatively new to Hampshire, I wasn’t too familiar with the good roads of the area. Time to head to Twitter. I was directed towards Winchester and Morestead Road – one that looked rather promising from a glance at Google Maps. That was that settled, then. A 40-minute drive from near our Gosport HQ followed (rather uninspiring, it must be said, taking place largely on the M27) before our arrival at the scene. What lay ahead for myself and VN66 ZHZ on Morestead Road, though, made every bit of the motorway drive worth it — a flowing country lane with plenty of gradients, tight turns followed by full throttle straights, and dips in all the right places, all surrounded by beautiful autumn scenery. Ever driven around Maple Valley in Forza Motorsport? It’s like the real-life version of that. It almost felt like our MX-5 was born for this
A comfortable cruiser and a capable carrier, too – that’s the Mazda MX-5 RF
road. It matched perfectly, with the incredibly capable chassis proving its worth on the twisty bits, while the power-plentiful 2.0-litre engine coupled to that crisp six-speed manual provided about as much performance as anyone could ever need on that incredible stretch of tarmac. Sure, some of the RF’s flaws did creep in — the ever-noticeable body roll compared with the softtop MX-5’s being the big one — but none of them could prevent a rather large grin on the face. The initial plan had been to do a couple of runs on the road and head back but we stayed for three hours — testament to the road and the car.
But it’s not just fun driving we’ve done in the MX-5 this month. It’s also proved itself as a capable carrier of large Scalextric sets, as well as a surprisingly comfortable long-distance cruiser — having twice carried myself to my northern homeland. With the harsher winter months about to strike, it’s going to be a real test of how the MX-5 RF can cope as an everyday machine in frosty, cold conditions. On the face of things, a rearwheel-drive sports car absolutely has no right to be the perfect car at this time of year. Then again, it didn’t have the right to be a longdistance cruiser or a decent luggage carrier either, so we won’t be surprised if it comes out the other end of winter as a choice car among the office.
THE KNOWLEDGE
Caterham Seven
Seat Leon Cupra 300
Mileage: 7,930
Mileage: 3,638
So, it’s a sad time indeed – the Caterham 310S has gone back. In truth, it’s a good time for it to happen – the cold weather is closing in, and chillier climes don’t tend to suit a Caterham.
A tiny stone that flew up from the road when we were heading off for a bit of late-night Christmas shopping caused a long hairline crack on the windscreen recently. Time for a replacement!
Model: Mazda MX-5 RF Price: £27,165 Engine: 2.0-litre petrol Power: 157bhp Torque: 200Nm Max speed: 134mph 0-60mph: 7.2 seconds Emissions: 161g/km MPG: 40.9 Mileage: 15,010 THIS MONTH’S HIGHLIGHT: Discovering the twists and turns of Morestead Road. CarDealerMag.co.uk | 121
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
Vauxhall is unseated as the second best-selling brand as sales take a hit
I
f you’re sat in a Vauxhall dealership right now, you might be wondering where it all went wrong. At the start of the year, your brand was jostling with Ford at the top of the sales charts and the Vauxhall Corsa and Astra models were sitting comfortably in the top 10 best-selling models every month. Fast-forward a few months and as the Christmas decorations go up, things have changed drastically for the worse. New owner PSA has swooped in with a whole new strategy – and with it, sales have fallen off a cliff. In November, Vauxhall was down a whopping 35 per cent on 2016. In October, it wasn’t much better, with sales down 34 per cent, while in the key month of September the firm was 25 per cent in the red. Those are huge falls and have resulted in Vauxhall losing its crown as the second best-selling manufacturer in the UK to Volkswagen. The German firm has been chipping away at Vauxhall’s lead all year. Back in August, it was just 1,649 cars off unseating the Luton firm from its secondplaced perch for the first time in years. Then, in September, Volkswagen clinched it – with sales up 7.7 per cent, it tipped the tables in its favour and now come November it has a healthy 11,283 new car sales lead over Vauxhall. While these figures are set against a backdrop of falling car sales across the industry amidst a market gripped by Brexit fever and diesel backlash, this Vauxhall woe is still pretty serious. Remember, this is a brand that not too long ago was shouting about how it was going to topple Ford as the market’s best seller. And look how that went. Dealers I’ve spoken to are getting worried. Many have huge showrooms dedicated to the manufacturer and they’re worried they won’t be able to cover their overheads. Vauxhall is a brand that’s built on volume – and when that tumbles, balance sheets start to look a little precarious. Take a look at most Vauxhall dealerships and you’ll see they’re huge sites with large showroom floors dedicated to the brand. That stacks up when you’re the second best-seller in the UK, but not when you’re freefalling down the sales charts. Two car manufacturer bosses I spoke to recently told me their franchising teams were receiving repeated approaches from desperate Vauxhall dealers asking if they could use their huge
showroom spaces as dual-brand set-ups. Whether Vauxhall would be happy with that is unclear, but the manufacturers I spoke to were keen to fill space in these dealerships with their cars too. Vauxhall says it has a plan, though. I contacted the brand’s director of communications to ask what the reason was for the firm’s considerable drop in new car sales. I also wanted to know what Vauxhall thought about being overtaken by Volkswagen – surely losing the number-two spot must have smarted a little. ‘We are following a strategic plan to remove the brand from unprofitable channels, such as daily rental,’ said the spokesman. ‘In light of the PSA takeover and the need to become profitable across the Opel Group, that plan has been stepped up into 2018. The results are as you have noted.’ So, does that mean the rush to pre-reg as many cars as possible at the end of a month, or worse, the end of a quarter, just to seal a second-place position has begun to ease? It appears so. ‘Our clear objective is to be profitable, with a sales focus on the retail sector and true fleet,’ added the spokesman. Frustratingly for Vauxhall dealers, the product line-up hasn’t looked as good as it does now for years. I can’t tell you what they’re like to drive – I’m still banned from driving them – but the Grandland X is a looker, and while the Crossland X isn’t quite as pleasing on the eye, it’s still a damn sight better than a boring Corsa. Vauxhall says a focus on these sorts of SUVs will help drive it back to profitability. ‘We have been affected by the decline in B, C and D-segment saloon car sales in favour of SUVs,’ added the spokesman. ‘From a model segment perspective, we are now selling in just over 50 per cent of the market. With Crossland X in the portfolio and Grandland X in the showrooms from January, we will catch up fast. In fact, Grandland X will become our second-best seller in retail.’ It’s clear the PSA takeover has already had a dramatic effect on the brand’s direction. Chasing profitability instead of volume is no bad thing – but Vauxhall will have to work hard to keep its retailers on side in the process. ‘We are working closely with the network as the transition into Groupe PSA and the journey back to profitability moves forward,’ concluded the spokesman. I, like many in the network, will be watching developments very closely indeed.
‘We are following a strategic plan to remove the brand from unprofitable channels.’
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. 122 | CarDealerMag.co.uk
0115 946 6370 enquiries@frfl.co.uk www.firstesponsefinance.co.uk
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