Car Dealer Magazine: Issue 119 by Blackball Media

CDX: SIX KEY REASONS WHY OUR HUGE TRADE EXPO IS NOT TO BE MISSED

Issue 119 | February 2018 | CarDealerMag.co.uk | £5

2017 FIGURES NEW CAR SALES TAKE A HIT – BUT CAN THE MARKET BOUNCE BACK?

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Editorial HEAD OF EDITORIAL Rebecca Chaplin

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Welcome.

YOU’LL probably be surprised to hear that Automotive Influencers is one of the most difficult features of the year to organise – but it’s one that’s always worth it. Trying to gather more than 10 executives in the same room at the same time is difficult enough. Then persuading them to (very generously) give up their time to fill out our questionnaire can be even more tricky. I have to thank everyone who was involved this year, because it was by far the most painless AI I’ve ever been involved in. It’s also, in my opinion, the one with the most variety, and I’m sure you’ll enjoy reading our influencers’ thoughts and advice on what’s to come this year. So what is to come this year? Well, more doom and gloom by the sound of it. That’s according to industry tipoffs we’ve been getting since the SMMT’s full-year new car registration figures were released. You’ll have heard the news already, I’m sure, but we’ve got a full rundown of all the year’s figures at the front of the magazine – so don’t go looking for the sales figures in the back pages this month! It’s been tough across the country, as I’ve been reading in the forum. While new car sales are seeing a drop and reports say used car sales are up, it does seem as though a lot of independent used car dealers are still feeling the pain. Some are even reporting it’s the worst time for them in recent history. Meanwhile, Jack Evans and Darren Cassey have been working on something that’s involved a little bit of fun – putting three convertible sports cars to the test. And not to boast even more, but James has been out in America finding out about the latest car tech that’s potentially coming to market. He crossed the Atlantic to

attend the Consumer Electronics Show, but if you follow him on Twitter you’ll have seen he didn’t really spend a lot of time at the Las Vegas event – and that’s not because he was lost in a casino. There will be more to tell you about that next month, but turn to pages 6-7 to find out about how automotive is set to change. This is our first magazine heading to print in the new year, so we always like to give you plenty of information to get your teeth into and hopefully turn into increased profitability. That’s why if you turn to p79 you’ll be able to read our ‘Top suppliers for 2018’ feature. This highlights some of the best businesses around that have something to offer you this year. I really want to hear all of your thoughts on the topics covered in this month’s issue of the magazine, so please do get in touch. For the foreseeable future I’ll more than likely be hiding away in the CDX bunker, making sure the final touches to our programme for the event in May have the most to offer you. It’s scary to think but we’ll be only four months away from the big event by the time this magazine reaches you. There’ll be plenty of news to come, so please always look out for the CDX pages in the magazine and on the website. The best way to find out what we’ll be doing there, though? Register for your tickets now at cardealerexpo.co.uk and you’ll be the first to get details about both days – and it’ll be worth knowing first, I can assure you! But for now, I hope you enjoy the issue!

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

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Automotive Influencers What do our key industry figures think about Brexit and the economy? (And what would they buy if they won the lottery?)

Crazy tech from the Consumer Electronics Show in Las Vegas

ISSUE 119 I FEBRUARY 2018

Dashboard. The Big Story: Kia’s new EV The Statistics: Full-year round-up Around the UK A Perfect Partnership Rebecca Chaplin Big Mike Feedback Around The World So You Wanna Be A Car Dealer? Finance

06 10 18 20 25 27 30 32 34 36

Features. Automotive Influencers Let’s Go Topless

Data File. Car Dealer Club Market Insight Auctions Taking Stock A Global View Real Deals Suppliers Guide

Forecourt. Alpine A110 DS 7 Crossback

40 42

Key Notes with Traka Long-termers James Baggott

48 70 100 103 104 105 106 107 108 110 111 114

Rebecca Chaplin puts the new Alpine A110 through its paces

Suppliers you should be working with to make 2018 a great year

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. Go online to bit.ly/UCA-winners to find out who won what in 2017.

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 22-23. CarDealerMag.co.uk | 05

Dashboard. THE BIG STORY

Kia Niro EV leads firm’s electric car charge

The South Korean manufacturer has revealed a 238-mile range electric car at the CES Show in Las Vegas – and has plans for many more to follow. James Baggott reports

ia has unveiled an electric Niro SUV and promises it’ll have a range of 238 miles when it arrives early in 2019. Currently dubbed a ‘concept’, the car showcases the brand’s new electric vehicle technology and spearheads a charge by the South Korean manufacturer to bring a whole range of electrified cars to the roads. At the CES Show in Las Vegas, Kia said it will offer 16 electrified vehicles – including hybrids, EV and fuel-cell EVs – by 2025. An executive also let slip that the refreshed Sportage, due to arrive in the summer, will be the first to offer a hybrid option. Although billed as a concept, the Niro EV will be launched to the press later this year and go on sale in early 2019. It is fitted with a 201bhp electric powertrain, with power coming from a 64kWh lithium-polymer battery pack. The range of 238 miles could also be extended to 300 miles, hinted execs.

The new Nissan Leaf, by comparison, has a range of 235 miles. The Niro show car is fitted with an Active Pedestrian Warning System which alerts drivers to pedestrians or cyclists crossing in front of the car. While the looks on the outside are a departure from the existing Niro, much is likely to make it across to the production car. Inside, though, some of the clever tech might not get the green light. A Human Machine Interface for the infotainment and heating lets drivers control it by swiping a touchpad area on the steering wheel, while the car features voice recognition and, if it doesn’t identify the driver, can shut down key functions. Kia executives also hinted at a new, longerrange electric Soul arriving soon, and said the next Cee’d – due in the summer – will have hybrid and electric options, as will the baby Stonic. A spokesman for Kia UK said: ‘Kia is aiming to be a leader in electric vehicle technology and will

have 16 electrified models in the range by 2025, many of which will be arriving very soon indeed.’ Kia also showcased a world-first in-vehicle 5G connection at the show with a real-time connection between Las Vegas and the firm’s head office in Seoul, South Korea. The connection enables users to stream dataheavy content to the car’s infotainment system and is likely to be rolled out on future models.

Nissan mind-reading

Byton Concept

Other mad new car technology from CES The Consumer Electronics Show in Las Vegas may be the place to learn about smart fridges, huge flat-screen TVs and the latest drones – but it’s also rapidly becoming a hotbed of car news too. More and more car manufacturers are investing in huge stands and unveiling their latest technology at the event in Sin City. This year, Japanese and South Korean manufacturers flocked to the event to show off their new products. Here we take a look at the biggest news. 06 | CarDealerMag.co.uk

Nissan says its cars of the future will read drivers’ minds to reduce reaction times and make autonomous driving more comfortable. The Brain-to-Vehicle (B2V) technology can predict human behaviour and detect when a motorist is feeling uncomfortable, thanks to clever software. Brain waves are decoded by a special headband worn by the driver and Nissan says it cuts reaction times by guessing when a driver is about to make a movement – such as braking when they spot stationary traffic.

With a former BMW i executive at the tiller of the company, Chinese-owned Byton is hoping its electric concept car will be a hit. With a 469bhp powertrain and a 323-mile range, the car debuts a whopping dashboard-wide screen to give the driver all the information they could dream of. It’ll be available with two power options. Buyers will be able to pick from a 268bhp rear-wheel-drive version or four-wheel-drive 469bhp variant. The batteries form part of the chassis, and it is due to enter production next year at a cost of £33,200.

How far should we go to show goodwill to our customers?

Feedback, p30

‘Kia is aiming to be a leader in electric vehicle technology and will have 16 electrified models by 2025.’ Kia UK spokesman

Honda off-road robot

Looking like a quad bike, Honda’s all-terrain 3E-D18 robot is designed to be adaptable so owners can use it for construction, or on the farm. Honda describes the autonomous, battery-powered 3E-D18 as a ‘workhorse’ that could be adapted for use in search and rescue operations or firefighting, as it ‘minimises human exposure to dangerous environments’. Using GPS and sensor-based autonomy, it can navigate almost any terrain so its list of potential uses would appear to be enormous.

Fisker Emotion

Move over Tesla, there’s a new electric car in town – although if you didn’t search hard, you’d have missed it at CES. Tucked away in the corner was the Fisker Emotion – an electric supercar with a 400-mile range and a claimed top speed of more than 160mph. With similar dimensions to a Tesla Model S, the Fisker has mad butterfly front and rear doors controlled by a smartphone, three screens inside for the driver, and autonomous capabilities. First models are due in 2020 and it’ll cost £96,000.

Toyota e-Palette

In the future, tipping the pizza boy will be a thing of the past if Toyota has its way and your Mighty Meaty is delivered autonomously by one of these. It’s called the e-Palette, an autonomous, electric vehicle designed to be used by businesses such as Amazon, Uber and Pizza Hut. The idea, says Toyota, is that businesses can adapt and modify the platform to suit their needs – be that carrying passengers as a taxi or dropping off your lastminute online purchases. CarDealerMag.co.uk | 07

Dashboard. JENNINGS FORD

Mountain biker on a Mustang mission!

professional downhill mountain bike racer made a round trip of nearly 200 miles for his perfect four-wheel mode of transport. Adam Brayton – who finished second in the British national series in 2017, 13th in the World Championships and 18th in the seven-race World Cup Series – travelled from Keswick in Cumbria to Jennings Ford in Middlesbrough, Teesside, to take delivery of his new Ford Mustang 2.3-litre EcoBoost Fastback. It meant a journey of 182 miles, but that was no obstacle for the 28-year-old, who is used to conquering steep, rough terrain, not to mention jumps, drops and rock gardens. He said: ‘I’ve always had a passion for the Ford Mustang – I just had to find the specific model I wanted and a reputable

Colin Massey, left, and Adam Brayton with the Mustang at Jennings Ford, Middlesbrough

motor dealer who I could trust to deliver the goods. ‘I’m delighted with the car, as well as the extremely high level of customer service I’ve received from the dedicated team at Jennings. They’ve been extremely professional from the first point of contact and throughout the entire purchasing process.’

General sales manager Colin Massey, who presented Brayton with the key to his powerful and dynamic Mustang, said: ‘It was an absolute pleasure dealing with Adam. I don’t think we’ve ever sold a car to a professional downhill mountain biker. He is extremely passionate about the sport, and a 13th placing in the World Championships is

a phenomenal achievement. On behalf of Jennings Ford, I would like to wish Adam many more years of success, as well as years of happy motoring in his new Ford Mustang.’ The ultra-modern Ford Mustang Fastback model has a long bonnet flowing downwards to reduce drag plus distinctive headlamp and rear light designs, along with other signature features, in addition to the latest technologies. Standard specification includes 19-inch alloy wheels, a performance brake package, xenon headlights, LED tail lights and a rear diffuser. The interior gets dual-zone climate control, plus Ford’s latest SYNC2 infotainment system with nine speakers and an eight-inch screen.

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

08 | CarDealerMag.co.uk

CarDealerMag.co.uk | 09

Dashboard. SMMT 2017 FIGURES

It’s official: A year of decline for new car registrations N

ew car registrations tumbled by 5.6 per cent by REBECCA CHAPLIN in 2017 – the first time the UK automotive @believebecca industry has seen annual registrations fall in six years. The Society of Motor Manufacturers and Traders revealed that the number of cars come after quarter one when we will see how the registered reached only 2,540,617 last year. underlying UK economy and consumer confidence Over the past nine months car sales have been is influencing car demand.’ down and December was no different. The month Nathan Coe, chief operating officer at Auto was down 13.9 per cent to 152,473 cars, making the Trader, commented: ‘Tough conditions have been last quarter of the year down by 12.4 per cent. made all the more challenging by the negative SMMT chief executive Mike Hawes said: ‘It’s tone of the fuel debate, as well as the lack of a important to put this into context – this is about clear government strategy to encourage motorists the sixth biggest year ever and the third best in the to exchange older diesel cars to the latest diesel last decade, coming off a record 2015 and 2016, technology or alternatively-fuelled vehicles. so the market is still a record high. The decline is ‘The government’s demonisation of diesel has definitely cause for concern, though.’ adversely impacted the new car market as the Diesel took the biggest hit of the year, with decline in registrations shows; it’s also evident on demand down by 17 per cent. Although Auto Trader as we have seen a 27 per cent alternatively-fuelled vehicles (AFVs) were up decline this year for consumers searching by 37 per cent, their market share remains for diesel cars. In contrast we’ve seen low at 4.7 per cent (3.3 per cent in 2016). an 84 per cent increase in searches for Among the 119,821 AFVs registered, electric vehicles. around 72,500 were hybrids, 33,700 were ‘The conversation needs to change so plug-in hybrids and 13,600 were full electric. that consumers feel encouraged to change Richard Jones, managing director of their cars to try a newer diesel, electric or Sue Robinson Black Horse, said: ‘New car sales reached hybrid fuel type. Unfortunately, without record levels in early 2017 so it’s not a surprise that the much-needed clarity from the government we saw these cool down as the year went on. This and a concerted effort from the whole industry to was down to a range of factors including consumer embrace the huge opportunity that electric vehicles confidence, rising car prices and uncertainty over present, the new car market will continue to face fuel choice leading to a fall in diesel sales. unnecessary challenges.’ ‘I believe we’ll see new car sales continue to Sue Robinson, director of the National Franchised decline in the first quarter of 2018 given that this Dealers’ Association, added: ‘Despite recent period in 2017 was so strong. confusion and speculation, with low interest rates ‘This should help dampen fears of over-supply and record employment levels, franchised retailers having a negative impact on used car prices and is remain optimistic. Although 2018 will bring positive in the long term by ensuring the new car challenges, there will also be many opportunities. ‘The significant growth of the alternativelymarket is operating from a sustainable position. I fuelled vehicles segment is particularly encouraging. would also expect the used car market to continue However, as petrol and diesel still represent the to perform well. vast majority of UK’s car parc, it is crucial that ‘With uncertainties facing the UK economy, it’s consumers and businesses continue to receive hard to make a confident consistent support to ensure that this transition is forecast for 2018 as a as smooth as possible.’ whole. I believe a big A volatile year, p12-13 test for the industry will

‘I believe we’ll see new car sales continue to decline in the first quarter of 2018.’ Managing director of Black Horse, Richard Jones, left 10 | CarDealerMag.co.uk

SMMT sales data Top

BEST-SELLING MANUFACTURERS OF 2017

Ford Volkswagen Vauxhall Mercedes-Benz BMW Audi Nissan Toyota Hyundai Kia

287,396 208,462 195,137 180,970 175,101 174,982 151,156 101,985 93,403 93,222

Bottom

WORST-SELLING MANUFACTURERS OF 2017

Chevrolet Lotus McLaren Aston Martin Maserati Bentley Subaru Infiniti SsangYong MG

70 279 567 1,471 1,701 1,753 2,679 3,515 3,590 4,441

Are you prepared for stormy times?

Key Notes with Traka, p110

Full-year figures for the whole of 201 7 Marque Abarth

December 2016

2017

2016

272

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

Top

December 2017

304 78 10,671 122 13,471 4 2,180 983 277 1,645 15,541 2,632 5,026 59 2,009 261 3,773 4,186 772 11 125 1,569 23 10,427 454 7,127 1,227 7,759 4,134 1,036 3,194 3,848 6,433 456 141 246 2,329 5,188 13,303 15,345 3,195 45 592 152,473

% market share 0.18 0.20 0.05 7.00 0.08 8.84 0.00 1.43 0.64 0.18 1.08 10.19 1.73 3.30 0.04 1.32 0.17 2.47 2.75 0.51 0.01 0.08 1.03 0.02 6.84 0.30 4.67 0.80 5.09 2.71 0.68 2.09 2.52 4.22 0.30 0.09 0.16 1.53 3.40 8.72 10.06 2.10 0.03 0.39

BEST-SELLING CARS OF 2017

276 292 107 11,319 128 15,066 0 2,653 1,891 580 3,929 20,741 3,294 5,625 78 2,520 813 3,788 4,967 750 5 150 2,111 18 10,220 367 7,383 1,059 10,628 5,753 1,264 6,058 3,348 5,657 848 174 330 2,264 4,642 17,074 15,634 3,736 55 427 178,022

Ford Fiesta Volkswagen Golf Ford Focus Nissan Qashqai Vauxhall Corsa Vauxhall Astra Volkswagen Polo Mini Mercedes C Class Mercedes A Class

% market share 0.16 0.16 0.06 6.36 0.07 8.46 0.00 1.49 1.06 0.33 2.21 11.65 1.85 3.16 0.04 1.42 0.46 2.13 2.79 0.42 0.00 0.08 1.19 0.01 5.74 0.21 4.15 0.59 5.97 3.23 0.71 3.40 1.88 3.18 0.48 0.10 0.19 1.27 2.61 9.59 8.78 2.10 0.03 0.24

94,533 74,605 69,903 64,216 52,772 49,370 47,855 47,669 45,912 43,717

Whole of 2017 against the whole of 2016 % change

2017

-1.45

4,441

4.11 -27.10 -5.72 -4.69 -10.59 0.00 -17.83 -48.02 -52.24 -58.13 -25.07 -20.10 -10.65 -24.36 -20.28 -67.90 -0.40 -15.72 2.93 120.00 -16.67 -25.68 27.78 2.03 23.71 -3.47 15.86 -26.99 -28.14 -18.04 -47.28 14.93 13.72 -46.23 -18.97 -25.45 2.87 11.76 -22.09 -1.85 -14.48 -18.18 38.64 -14.35

4,997 1,471 174,982 1,753 175,101 70 51,455 25,149 9,082 44,475 287,396 53,901 93,403 3,515 35,544 6,380 93,222 82,653 12,670 279 1,701 39,092 567 180,970 4,441 68,166 16,092 151,156 82,226 14,051 69,110 56,130 79,758 10,323 3,590 2,679 40,343 101,985 195,137 208,462 46,139 700 5,860 2,540,617

% market share 0.17 0.20 0.06 6.89 0.07 6.89 0.00 2.03 0.99 0.36 1.75 11.31 2.12 3.68 0.14 1.40 0.25 3.67 3.25 0.50 0.01 0.07 1.54 0.02 7.12 0.17 2.68 0.63 5.95 3.24 0.55 2.72 2.21 3.14 0.41 0.14 0.11 1.59 4.01 7.68 8.21 1.82 0.03 0.23

2016 3,966 4,881 906 177,304 1,948 182,593 4 62,991 26,499 15,898 60,581 318,316 59,106 92,419 2,891 34,822 14,090 89,364 79,534 13,915 339 1,435 46,609 18 169,828 4,192 68,984 18,237 152,525 98,529 13,097 85,102 47,456 80,372 12,020 4,444 3,612 38,167 96,746 250,955 207,028 46,696 825 3,542 2,692,786

Ups&downs

% market share 0.15

% change

0.18 0.03 6.58 0.07 6.78 0.00 2.34 0.98 0.59 2.25 11.82 2.19 3.43 0.11 1.29 0.52 3.32 2.95 0.52 0.01 0.05 1.73 0.00 6.31 0.16 2.56 0.68 5.66 3.66 0.49 3.16 1.76 2.98 0.45 0.17 0.13 1.42 3.59 9.32 7.69 1.73 0.03 0.13

11.98 2.38 62.36 -1.31 -10.01 -4.10 1,650.00 -18.31 -5.09 -42.87 -26.59 -9.71 -8.81 1.06 21.58 2.07 -54.72 4.32 3.92 -8.95 -17.70 18.54 -16.13 3,050.00 6.56 5.94 -1.19 -11.76 -0.90 -16.55 7.28 -18.79 18.28 -0.76 -14.12 -19.22 -25.83 5.70 5.42 -22.24 0.69 -1.19 -15.15 65.44 -5.65

Comparing 2017 figures with 2016 Seat

+18.2%

Jeep

-54.7% CarDealerMag.co.uk | 11

Dashboard. SMMT FIGURES ANALYSIS

So what really made 2017 such a volatile year? by DARREN CASSEY @DCassey

ver lunch in London ahead of the release of the 2017 new car registration figures, SMMT chief executive Mike Hawes, right, gave a select group of journalists a preview of what the numbers meant for the industry. He described 2017 as a ‘volatile’ year, caused by changes to vehicle excise duty that saw March become the biggest month on record as buyers flocked to beat tax rises, and ended with the first annual decline in registrations recorded in six years. Last year, at the same media lunch, Hawes pointed to consumer confidence as a reason why 2016’s sales were at an all-time high, but this year a lack of confidence was said to be one of the reasons behind the decline. ‘Consumer confidence indices show bigticket purchases declining since the Brexit vote and, with the uncertainty around diesel, that’s hit the market,’ he said. ‘The chancellor’s budget sent the wrong message that people shouldn’t be buying diesels, and the air quality plan, where it was perhaps misrepresented that petrol and diesel vehicles would be banned, hasn’t helped. ‘But diesel isn’t dead. People just need to know that diesels are the cleanest they’ve ever been, and they need to buy the right fuel for their needs. ‘It’s important to put all of this into context, though – this is the sixth best year ever and the third best in a decade, coming off a record 2015 and 2016, so the market is still at a record high. The decline is still a concern, though, and the forecast for 2018 is five to seven per cent down. So it’s not good news, but it’s not a cliff edge, bearing in mind where we’re at in historic terms.’ The conversation was unsurprisingly dominated by Brexit, the future of diesel and alternatively-fuelled vehicles. See the panels to the right to find out what Hawes had to say on these key industry topics.

12 | CarDealerMag.co.uk

Mike Hawes on... Brexit

Diesel

One of the big reasons behind the decline has been Brexit, with consumer confidence indices showing that big-ticket purchases are declining. It’s also affected manufacturers behind the scenes, with price rises caused by changes in exchange rates with the majority of parts and cars imported. The government needs to give the car industry an idea of the transition deal to allow people to make investment decisions going forward. We need that now. I know of some decisions that are well overdue because those involved are waiting for some idea of what the future holds. Brexit is undoubtedly a risk to the UK car industry. There are opportunities, though. Vauxhall’s Ellesmere Port plant has seen job cuts, but PSA Group boss Carlos Tavares has said there may actually be advantages to having a factory outside the EU with a different currency, but in close proximity.

There’s a lot of confusion for consumers around diesel. But customers aren’t switching out of diesel and into petrol or hybrids, they’re sitting on their hands. We can see that clearly in the figures, because diesel is down 17 per cent for the year, but there aren’t increases in sales of other fuels to compensate for that. This is having an unintended effect on overall CO2 emissions, though. Last year was the first time we haven’t seen a drop in CO2 emissions across the industry since records began about 20 years ago. Taxation changes have driven this confusion. The chancellor’s budget sent the wrong message that people shouldn’t be buying diesels, and the air quality plan, where it was perhaps misrepresented that petrol and diesel vehicles would be banned, hasn’t helped. But diesel isn’t dead. People just need to know that diesels are the cleanest they’ve ever been.

Six great reasons to come to CDX

Event preview, p22-23

COLOUR CHOICES

Black on top for the first time in five years (but the future could be orange...)

‘Diesel isn’t dead. People just need to know that diesels are the cleanest they’ve ever been.’ SMMT chief executive Mike Hawes

BLACK was the most popular choice of colour for new cars in 2017, according to SMMT figures. More than half a million new black cars were registered in 2017, placing the colour at the top of the rankings for the first time in five years. Second place went to grey, while white, previously the most popular colour, found itself falling to third place. Blue was placed fourth, followed by silver in fifth place and red sixth. The rest of the rankings went to green, orange, bronze and yellow respectively. Interestingly, orange and bronze were both more popular than ever before, with the latter entering the top 10 for the first time and replacing brown. The fastest-growing colour in terms of popularity was gold, which went up 19.1 per cent, although it still didn’t earn a place in the top 10. Mike Hawes, chief executive of the SMMT, said: ‘Picking a colour is one of the many exciting decisions to make when specifying a new car, as well as selecting from the cutting-edge safety and comfort tech available on the latest low-emission vehicles. ‘Manufacturers are continually investing to bring more choice to car buyers, including more colours and colour combinations than ever before.’

GO ULTRA LOW

Alternatively fuelled vehicles The real growth area was alternatively fuelled vehicles (AFVs). They had a market share of 4.7 per cent in 2017, up from 3.3 per cent in 2016. More than 119,000 new AFVs were registered during 2017. That figure was made up of about 72,500 hybrids, 33,700 plug-in hybrids and 13,600 pure electric models. Sales are clearly increasing in pace, but the market share is comparatively very low. There needs to be more consistent investment and more consumer confidence for them to really take off. At the moment there are about 87 electrified options in the market, and that obviously needs to increase if we’re going to hit tough emissions targets. We need to encourage more people into AFVs if we’re to achieve the steady glide down to the cross-fleet CO2 emissions target of 95g/km by 2021.

The future The forecast for 2018 is five to seven per cent down. So it’s not good news, but it’s not a cliff edge, bearing in mind where we’re at in historic terms. The first-quarter figures are going to be tough, because we’re seeing a declining market being compared to record months – particularly in March. The government would prefer a buoyant new car market as it means more revenue from VED and VAT and they won’t like the new figures.

A ‘stellar’ year for AFVs, with more growth on way THE electric car consortium Go Ultra Low has welcomed the increasing popularity of alternatively-fuelled vehicles. The demand for 100 per cent electric cars, such as the UK’s best seller – the Nissan Leaf, continued to grow in 2017. Meanwhile, plug-in hybrid cars such as the popular BMW 330e, VW Golf GTE, and Hyundai Ioniq delivered the highest volume of registrations with more than 33,000 arriving on UK roads, an increase of a quarter versus 2016. Poppy Welch, head of Go Ultra Low, said: ‘2017 was a stellar year for electric vehicle registrations with strong growth of 27 per cent, demonstrating the massive consumer appetite for 100 per cent electric and plug-in hybrid cars. There are already more than 130,000 electric vehicles on UK roads, a figure that could pass 190,000 this year.’

Cars such as the VW Golf GTE have helped boost the appeal of EVs and plug-in hybrids CarDealerMag.co.uk | 13

Dashboard. IN MEMORIAM

Motor industry stalwart Howard Quirk dies at 71

AUTO TRADER

BMW 3 Series in pole position as love affair with premium brands continues MOTOR industry stalwart Howard Quirk passed away on December 30, 2017, after a brave fight against severe sepsis. Quirk, 71, was a prominent figure in the motor industry for many years, dating back to his days in the early ’80s as owner and director of Westleigh Mazda, owning showrooms in Southend as well as Chelmsford. At one point this was the best-performing Mazda dealership in the UK, going on to become Howard Quirk Mazda, where he was famously known as ‘Mazda Man’, writing and narrating his own radio adverts. In the early ’90s, Quirk switched to Nissan, taking on much larger premises, also in Chelmsford. In 2003, he and his son Ross launched Quirks Car Company, based in Wickford, Essex, and also recently opened a second showroom in Chelmsford, Essex, specialising in sports, prestige and 4x4 vehicles. It’s a true family business, where six family members play an active part in the day-to-day running of the company, which has enjoyed much success over the years at Car Dealer Magazine’s Used Car Awards. His family have expressed how much he will be missed by them as well as by staff and customers and anyone who had the pleasure of meeting him. 14 | CarDealerMag.co.uk

THE BMW 3 Series has retained its title as the most-searched-for car in the UK, according to Auto Trader. The compact executive car has held the title for seven consecutive

years, and was searched for more than 40 million times on the online marketplace in 2017, closely followed by the Volkswagen Golf, which has been in second position for nine years

running. The top 10 listing indicates the nation’s enduring interest in premium models, with BMW and Mercedes-Benz featuring a combined five times.

COURT CASE

Fraudster stole nearly £2.5m from Vauxhall dealership

fraudster has been jailed for six years after swindling millions of pounds from an Evans Halshaw dealership. Accountant Allan Curry, 24, from Seaham, County Durham, devised the sophisticated scheme to siphon off the money from the Evans Halshaw Vauxhall garage he worked for in Middlesbrough, with the scam eventually running to more than £2,470,000. Having initially begun to pay off a personal debt of £20,000, he became addicted to the thrill and went on to buy four houses as well as expensive cars such as Mercedes, BMWs and Range Rovers. His activities also included spending £140,000 on personalised number plates and transferring £136,000 into a Sky Bet account. Prosecutor Ian West told Teesside Crown Court: ‘What he did, in short, was to create false email and other accounting documents evidencing bogus transfers of vehicles in between branches and creating inter-company debts which required the transfer of money between different Evans Halshaw showrooms.’ The fraud involved 10 bank accounts across three different banks, with 140 different transactions taking place. ‘What the defendant did with

Fraudster Allan Curry Picture: Cleveland Police

the money was to live the life of Riley,’ said West. ‘It lasted two and a half years from April 2014 until he was rumbled in November 2016, and how he was rumbled was that an accountant noticed that two payments were made to two different branches of Evans Halshaw in different parts of the country but they were paid from the same bank account, which was not right, and at that moment the fraud began to unravel.’ At the time of Curry’s arrest, he was living in a £350,000 house he had bought with the stolen money. West told the court that after being interviewed by police, Curry said he became addicted to the gratitude his family gave him when he started to

help them out financially. He had told them he had won the money from gambling. ‘It started by taking a small amount of money and it snowballed from there,’ said West. Paul Fleming, mitigating, described Curry as a ‘naive young man’ who failed to seek proper help with his debts, resulting in a ‘spiral into offending and stealing more and more money’. He said Curry, who pleaded guilty at an earlier hearing to one count of fraud by abuse of position and one count of money laundering, ‘bitterly regrets the initial decision to steal’ but the ‘temptation to continue was something more than he could resist’. Jailing him, Judge Simon Hickey said the crimes showed a ‘sophisticated nature of offending’. He said: ‘You knew exactly what you were doing. You were stealing vast amounts of money to service your gambling habit. It is a significant figure, one rarely seen even in the crown court.’ The court was told that Evans Halshaw had pursued a civil claim against Curry, of James Street South, with some of the money being recovered. In addition, Cleveland Police were taking action under the Proceeds of Crime Act.

Your regular bite-sized digest of dealership news.

Around the UK: p18 CLEANER MOTORING

Hyundai ‘very pleased’ to reveal an extension of its scrappage scheme

yundai Motor has extended and enhanced its scrappage and emissions reduction scheme that offers customers up to £5,000 off the price of a new car. Originally set to end on December 31, it will now run until March 31, 2018, targeting older and more polluting vehicles with Euro 1-4 emissions standard, ie, cars registered before December 31, 2009. Regardless of make or model, Hyundai will offer owners the opportunity to scrap or trade in their old car for a new Hyundai, with a range of incentives available across the line-up. As an example, the newly introduced Ioniq plug-in hybrid guarantees a £3,500 customer saving when using the £2,000 Hyundai scrappage offer combined with the government-funded £1,500 plug-in car grant. The all-new Kona, which is Hyundai’s latest SUV offering, has also been introduced, with a £1,750 incentive available on all variants. Santa Fe and Tucson remain on the scheme, with savings of £5,000 and £3,500 respectively. The i10, i20, i30, i40 and ix20 continue to be available, and all savings on the scrappage and vehicle emissions scheme will be supported by 3.9 per cent APR from Hyundai Finance in January as well as in February. Under the terms of the scheme, the most polluting – those with Euro 1-3 emissions standard – will

HENDY GROUP

New franchise manager for Kia and Suzuki brands SOUTH coast dealer group Hendy has appointed Andy Meaden as its franchise manager for Kia and Suzuki. Commercial director Mark Busby said Meaden’s experience as Hendy’s Ford franchise manager put him in an unrivalled position to look after Kia and Suzuki. ‘These are both expanding brands for us as a group and we are delighted that Andy will be overseeing development at dealerships across the south coast,’ he said. Meaden’s appointment comes at a time of investment and expansion for Hendy, which is set to launch three new dealerships in Hampshire.

by REBECCA CHAPLIN @believebecca

be scrapped, while owners of a Euro 4 model can trade in their vehicle for the vast majority of models across the Hyundai range. Tony Whitehorn, the president and chief executive of Hyundai Motor UK, said: ‘Hyundai is fully committed to improving the efficiency of its product line-up and to lowering emissions. ‘Our scrappage and emissions reduction scheme has made the change into new, cleaner and more technologically advanced vehicles even easier for over 2,700 customers since we launched it back in September 2017, so we are very pleased to announce the extension of the scheme. ‘The scheme has been enhanced to introduce not just our brand-new small SUV, Kona, but also the award-winning Ioniq plug-in hybrid.’ Tony Whitehorn in Automotive Influencers, p53

... and incentives for new Audi buyers continue, too AUDI has also extended its UK scrappage incentive into the first quarter of 2018. Diesel vehicles from all manufacturers registered before 2010 that fall within the EU1 to EU4 emissions categories have been eligible since September for an exclusive scrappage contribution towards the purchase price of a new Audi EU6 TFSI petrol, TDI diesel or e-tron plug-in hybrid model. Under the terms of the Audi programme, all qualifying vehicles received in exchange are permanently taken off the road and scrapped. The majority of new Audi models can be exchanged on this new-for-old basis, with the exception of Q7 TDI, A8, R8 and RS models. Customers will receive a scrappage contribution of between £2,000 and £8,000 towards the purchase price, allocated on a sliding scale based on the category of their chosen model. This replaces any part-exchange value for the vehicle being traded in. In the case of the A3 Sportback e-tron PHEV, the total contribution is £7,500 if the £2,500 OLEV grant that is separately available for this model is also factored in. The scrappage incentive is available to retail customers only, and the new vehicle bought must be registered in the same customer name or at the same address as the vehicle being traded in.

MARSHALL MOTOR HOLDINGS

2017 financial performance better than expected MARSHALL Motor Holdings, one of the UK’s leading automotive retail groups, performed strongly during 2017 – even as the new vehicle market in the UK became more challenging. The news was revealed in a statement the company issued ahead of the release on March 14 of its full-year results for the year ended December 31, 2017. In the second half of 2017, the group continued to build on the record financial performance it enjoyed during the first six months – with its performance during the whole year expected to be ahead of expectations – which had already been upgraded. In the first half, the group recorded a 0.4 per cent decline in like-for-like new car sales to retail customers. But this meant the company

outperformed the market overall, since total UK new vehicle registrations fell by 4.8 per cent during the same period. In the second six months of the year, total new vehicle registrations to retail customers across the UK decreased by 9.2 per cent – and again, the group maintained its outperformance of the market thanks, it says, to its brand portfolio, locations and people. Used cars were another area where Marshall had a strong year while aftersales revenues remained stable. CEO Daksh Gupta said: ‘I am delighted to report that the financial performance of the group during 2017 is expected to be ahead of our previously upgraded expectations, despite the market backdrop.’ Daksh Gupta in Automotive Influencers, p61 CarDealerMag.co.uk | 15

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ELLESMERE PORT: Vauxhall is to cut a further 250 jobs from its Ellesmere Port factory, following 400 redundancies in 2017. The British car manufacturer was bought last year by French Groupe PSA, which is made up of the Citroen, Peugeot and DS brands. It then announced plans in October to cut 400 jobs in a move to a single-shift operation for 2018. Despite Vauxhall describing the switch to a single shift as a success in a statement, it revealed that 250 extra jobs needed to be cut between April and September 2018 ‘in order to meet the challenges ahead’. The Ellesmere Port factory is responsible for production of the Vauxhall and Opel Astra, demand for which has reduced with growing interest in SUVs.

More job losses to meet ‘challenges ahead’

STOCKPORT: Lookers is expanding its portfolio of prestigious Volvo retail sites with the opening of a new luxury dealership in Stockport. The launch of the new Lookers Volvo site in St Mary’s Way, Mersey Street, represents a £4m investment by the retailer. Outside there will be space for 50 Volvo Selekt approved used vehicles and customer parking. The eight-strong new car showroom is inspired by Scandinavian design and has large exterior and interior glazing, a focus on physical and digital presentation and integrated sales and service areas. Nigel McMinn, chief operating officer at Lookers plc, said the new dealership was ‘a reflection of our confidence in the fantastic new range of models that Volvo are producing and their clear position as an authentic Swedish premium brand’.

A touch of luxury at new Volvo dealership

What’s been hitting the headlines on the home front? Here’s a round-up of stories NEWCASTLE: BCA Newcastle is launching a new weekly sale to meet growing demand. The Wednesday sale will offer an additional 200 cars from leading vendors such as Lex Autolease and UKCGR. The majority of vehicles on offer come with V5, service history and warranted mileage, are fully appraised and catalogued pre-sale and, where applicable, are offered with a BCA Assured report. The new sale builds on the existing auction calendar of sales on Tuesdays and Fridays. Eddie Thomson, BCA’s sales director for Scotland and north-east England, said: ‘The new Wednesday sales mean customers can buy on site or online three days a week from BCA Newcastle and benefit from all the specialist services and support that BCA offers the motor trade.’

New weekly sale at BCA’s Newcastle site

SHEFFIELD: A 200,000 square foot dealership dedicated to BMW and Mini has been opened in Sheffield. The dealership, which is being operated by Sytner Group, replaces a previous BMW site located in the centre of the city, and a Mini franchise that sat within a mile of the new location. The new dealership, which is just a mile from the popular Meadowhall Shopping Centre, is the largest UK franchise currently held by the German marque, with room for 250 cars across the three-storey facility. Of those cars, 140 will be new and used BMWs, while 110 new and used Minis will fill the remainder of the site.

New Sytner site brings BMW and Mini together

MIDDLESBROUGH: A loyal member of staff at Jennings Motor Group has taken over the reins at the company’s Mazda dealership in Middlesbrough after being promoted to franchise manager. Adam Price, from Thornaby-on-Tees, has received his third promotion after starting his career as a sales executive at the Cargo Fleet Lane dealership in 2007. The promotion resulted from the motor dealer group investing in an additional Mazda and Kia dealership in Sunderland, and the previous franchise manager, James Chorlton, transferring to take on the role of general sales manager at the new site. Price said: ‘This is a fantastic opportunity for me and I’m delighted to have been given another chance to progress my career with the company.’

Adam’s career goes from strength to strength

News from around the UK

Dashboard.

CarDealerMag.co.uk | 19

SOLIHULL: A Land Rover dealership in the West Midlands is believed to have been the target of an arson attack. A fire broke out at the rear car park of Listers Land Rover Solihull on December 29, and following a 999 call, West Midlands Fire Service sent a fire engine and support vehicle. The crews managed to put out the blaze, which destroyed three cars and damaged a further five, and West Midlands Police, which attended the scene, said it was being treated as a suspected arson attack. No-one was injured, but an ambulance was also sent as a precaution. Listers Group declined to comment on the incident as it is still under investigation, but told us that the dealership was open for business as usual. Anyone who has information about the cause of the fire should contact West Midlands Police on 101.

Business as usual despite arson attack

STAFFORD: A new Nissan dealership, WR Davies, has officially opened in a prime position on Valley Drive in Stafford. Owner Jonathan Davies and dealer principal Alan Poole cut the ribbon at the new £3 million showroom, alongside Nissan Motor (GB) managing director Alex Smith. The event marked the official opening of the new site, which has been created to showcase the quality, technology and desirability of the Nissan range of vehicles in a contemporary and beautifully designed environment, with first-class customer service the focus at all times. Davies said: ‘I am delighted so many of our customers and friends were able to join us for our grand opening.’

Grand opening of new Nissan dealership

BANBURY: Bristol Street Motors Hyundai Banbury has signed a deal to support a football team’s promotion ambitions. The dealership is backing Evo-Stik Southern League side Banbury United as it aims for the Vanarama National League. The support will help the fan-owned club to buy essential equipment and support the upkeep of its home ground, the Spencer Stadium. As part of the deal, the Southam Road dealership will also sponsor selected home matches and display several vehicles outside the ground. Sales manager David Mayer said: ‘Bristol Street Motors is a strong supporter of community causes, and grassroots sports in particular. Banbury United embodies the community spirit that comes with local sports teams.’

Hyundai dealership backs promotion aims KENT: The first Mitsubishi Buy Online customer took delivery of his new vehicle three weeks after ordering it on his smartphone while on a coffee break. Antony Deane bought his ASX 3 via Mitsubishi Buy Online after noticing the new web-based buying portal on the Mitsubishi Motors in the UK website. Having all the information he needed immediately to hand, he decided to place his order there and then, completing the purchase under 20 minutes. The 43-year-old was then able to chat online with the dedicated Mitsubishi Buy Online support team to arrange the delivery of his Mitsubishi ASX – collecting his Orient Red compact SUV from Grosvenor Garage in Tunbridge Wells.

Customer who bought a car in his coffee break!

NOTTS: A car dealer has been left counting the cost of a spate of vandal attacks. Shepherd’s Motors of Stapleford has had 20 cars vandalised since November, with smashed windows and broken mirrors rife throughout the site. Owner David Shepherd told Car Dealer Magazine: ‘They came once in November, and then they’ve been four or five times since. During December, they came on a Wednesday, Thursday and Sunday on the same week, and then again on January 4. The one thing I am reasonably confident of is that this isn’t somebody I’ve upset. It’s a few teenage lads who are running riot in the town at the moment – it’s not just me having this problem.’

Vandals ‘running riot’ repeatedly target dealer

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What do I do about this flexible working request?

Ask Lawgistics: p100

Greenyer

AGREEMENT Greg Clark: ‘The automotive sector will shape our response to grand challenges...’

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Understanding customers and competing effectively

£52.8m investment for motor industry thanks to government deal

landmark deal between the government and the automotive industry has secured millions of pounds of investment. It involves joint investment and longterm commitments in areas including the design and development of autonomous vehicles, research and development of battery technology, and accelerating the manufacture of ultra-low and zero-emission vehicles. The government has announced £26.4 million of investment, match-funded by industry to total £52.8 million, to help develop the next generation of driverless and low-carbon vehicles, with flagship projects led by Ford, GKN and JLR. Hailing it as a ‘landmark’ agreement, business and energy secretary Greg Clark said: ‘For decades, the UK’s automotive industry has powered our economy forward. Today, automotive firms from around the world set up shop here, citing our history of excellence, skilled workforce and world-leading supply chains. ‘In the next 10 years, the sector will see more change than in the previous 100. From the engines that power our cars to

the way we control them and our attitudes to owning them, technology is changing what the industry looks like and where money can be made. ‘The automotive sector will shape our response to the grand challenges articulated in our industrial strategy, such as clean growth and the future of mobility – transformations which will forever change how people live, work and travel.’ Unite union assistant general secretary Tony Burke said: ‘Unite welcomes any new investment in the UK’s world-class car industry, but against a backdrop of continued Brexit uncertainty and job losses at Ellesmere Port, we demand that the government goes further. ‘We need a proper long-term plan for the automotive sector with union involvement that includes a “just transition” plan for workers in the diesel and the traditional supply chain. If the UK’s automotive sector is to retain its world-leading status, then the government must do more to support firms in the supply chain so they can retool, reinvest and reskill workers for the next generation of components.’

Penske Automotive Group buys The Car People AMERICAN automotive giant Penske has completed its purchase of UK used car supermarket The Car People, doubling its scale in this sector of the industry. Penske announced that it had committed to purchase the business, which is made up of four large sites in 20 | CarDealerMag.co.uk

Wakefield, Sheffield, Manchester and Warrington, in December 2017. The Car People sells around 18,000 vehicles a year and is estimated to generate an annual revenue of £225 million. Penske owns Sytner Group in the UK and acquired CarShop a year ago.

his year is set to be another challenging one for the retail motor trade. At the time of writing, the Society of Motor Manufacturers and Traders had just confirmed that 2017 saw a drop in the number of new car sales, with industry and economic experts predicting a further decline in 2018. And whilst the used car market remained relatively unscathed in 2017, the experts say the coming 12 months could prove more challenging for this sector too. The UK economy is undoubtedly in a state of flux as we wait to understand the full implications of leaving the EU. The prospect of interest rate rises – even if they don’t materialise – could also have a dampening effect on consumer spending. However, all is not lost. With rail fares increasing by over three per cent at the start of the new year, the market for vehicle ownership in the UK remains strong. But in such challenging conditions, motor retailers need to deliver solutions that go to the heart of the customer need. In other words, they need to source the right stock for a changing consumer appetite – including smaller, compact vehicles and perhaps even encompassing new technologies such as electric. And they need to demonstrate that they understand the financial pressures facing today’s households. Whilst individual car ownership is still very much part of the make-up of the UK psyche, there is undoubtedly a move towards car sharing, particularly amongst the younger generations. The motor retail businesses that have the greatest chance of success in 2018 are, therefore, likely to be those that really understand their customers – and can demonstrate they understand their customers through every touchpoint. That includes adopting and developing contact strategies that not only reach out to customers on a regular basis, but are backed up with customer support services that are responsive and effective. However, according to recent research released by Yonder Digital, it seems that ‘contactability’ isn’t necessarily top of the list of priorities for car brands. In its poll of 2,000 consumers, Yonder Digital found that the motor sector performed poorly compared to other consumer markets. Motor retailers need to ensure that they don’t ‘lose out’ in the battle for the consumer’s pound. The winners in 2018 are therefore likely to be the motor retailers that invest in the technology – and the people – to compete effectively with other retail opportunities.

‘There is undoubtedly a move towards car sharing.’

Darren Greenyer is deputy head of lending at Raphael Finance.

CDX UNVEILS

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CarDealerMag.co.uk | 21

CDX 2018 WHAT’S IN STORE

Our headline partners have some awesome plans in place In last month’s edition of Car Dealer, two of our four CDX headline partners – Perfect Placement and iVendi – told us what they had in store for the event. Now it’s the turn of WMS Group and GardX to have their say...

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There’s already a huge buzz around CDX – we’re excited to be involved

A comfortable, inviting space... and the official CDX party as icing on the cake

aving been involved with CDX from its inception, WMS Group is certainly no stranger to going big when it comes to creating crowd-pulling pitches. The last three years have been a resounding success for the multi award-winning warranty experts, but this year the company is taking it to the next level as one of CDX 2018’s four headline partners. Steph Colinswood, pictured, marketing manager at WMS Group, told Car Dealer: ‘With a 150 square metre pitch, we’ve decided to split our stand into three sections – one for our regular products, one for our flagship used car scheme Safe and Sound, and one for WMS Rescue & Recovery. With dedicated areas and staff for each product, we can ensure that we deliver an outstanding service to each visitor.’ Over the last few years, WMS Group has led the warranty sector through innovation and differentiation, having continued to add invaluable protection products and initiatives to its expanding portfolio. But in an unexpected move, the firm is going back to basics for 2018 to ensure that dealers are making the most of their used car offering. ‘Dealers are still missing so many opportunities because they aren’t getting the basics right,’ said Colinswood. ‘CDX presents the perfect opportunity for us to drill down into the fundamentals and show them exactly how to maximise their inquiries, sales, retention and, ultimately, bottom lines. We’ll be covering everything from attracting new customers and reducing administration processes, to increasing workshop absorption, compliancy and sales training, and everything inbetween. ‘Our business experts will be on hand to answer any questions and we also have an excellent guest speaker lined up, plus an exciting competition. ‘On top of that, Ben Collins – former Stig and face of Safe and Sound – will be joining us for meet-and-greets and photoshoots, so dealers really won’t want to miss it. We’ve already started to invite our dealers and partners and there’s a huge buzz. It’s very exciting!’

ardX has revealed some of its plans for its first year as a headline partner of CDX. Amanda Massey, GardX head of sales, pictured below, said: ‘CDX will be the biggest event in the UK automotive industry in 2018 and increasing GardX’s involvement to headline sponsor is a move which enforces the message of our growth and development as a company during 2017 and even more so for the year ahead. ‘The decision to move the event to Manchester is one that we welcomed – such a fantastic city and surrounded by plenty of hotels and transport links – it has made it so much more accessible for people to attend, the turnout will be great!’ With more dealers expected to attend, CDX will be the ideal place to network with other members of the industry, and GardX plans to make that as easy as possible for delegates. ‘We have decided to go down a slightly different route with our stand this year and focus on creating a space that gives dealers a comfortable, inviting and entertaining environment to join us and key automotive influencers for a friendly chat,’ said Massey. ‘We will also be hosting a workshop session that explores using technology to engage consumers to drive their intent to purchase and using a disciplined sales process to achieve greater penetration. ‘This will be hosted by our very own ‘‘Digital Gurus’’ led by our head of operations for GardX AD-Vantage – Alistair Jeff.’ While improving profitability for dealers will be at the core of GardX’s CDX presence, there’s always room for some fun and the team will be hosting the official CDX party on the evening of Monday, May 21. ‘The official party is sponsored and hosted by GardX – and we can guarantee it will be one not to be missed,’ Massey confirmed. ‘It will be a night of entertainment, networking and lots of fun in true GardX style!’

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22 | CarDealerMag.co.uk

May 21 and 22, 2018, Manchester Central COUNTDOWN UNDER WAY

Six great reasons why YOU should be at CDX by REBECCA CHAPLIN @believebecca

eeling like you’ve seen it all when it comes to CDX, the best and biggest motor trade expo in Europe? That certainly won’t be the case in 2018, as 35 per cent of exhibitors who have taken stands within the exhibition space so far are new to the event. That means you’ll have even more opportunities to meet with businesses who can help your dealership grow! While that figure might not seem like a lot, the expo hall is bigger than ever before with around 30 per cent more stands. And 60 per cent of exhibitors we have signed up so far haven’t been at another automotive trade show in the last 12 months. Here are six reasons why you’ll get more from CDX this year than ever before. The huge expo You’ll have read about our four headline partners for 2018, with two of them featured on the lefthand page. They will be hosting the four biggest stands in the expo, larger than any seen at CDX before, at unmissable points within the hall. For the expo overall, the space is bigger, there are more stands, and the stands are also larger than you previously saw at Silverstone. Prepare to be wowed by the sheer scale of this year’s expo! Workshops While you’ll be able to talk one-on-one with key suppliers and brands in the expo, some will also be hosting seminars to teach you about the future of the industry. In total, there will be 20 workshops, covering key topics affecting dealerships. These will run twice at CDX18 – once on the Monday (May 21) and again on the Tuesday (May 22) – giving everyone a chance to see as many sessions as possible. Live Stage We released our Live Stage topics for CDX18 last year, and you can head over to the Car Dealer

A packed Live Stage session at CDX17 website now to see them, but we’re currently preparing to unveil the incredible line-up of speakers in full. Each panel has a key topic, relevant to today’s motor trade. We’ll also be giving you the chance to have your say, grill our panellists or just ask nicely for their opinions. We’re taking questions already to shape the day, so get in touch with what you want to know. Headline speakers You can expect to see more keynote speakers on the Live Stage this year, following each day’s theme of digital dealership and physical forecourts. These will be sessions not to be missed, and every year, delegates tell us they made changes at their dealerships based on what they learnt from these talks. Women in the Motor Industry Women in the Motor Industry will be back for 2018, and we’re planning to break records once

again. Every year we’ve seen more women show up for this session, to share their inspiring stories and prove that girls do it just as well as the boys. This year, we’ll be giving delegates a great opportunity to network with each other too, so this will be a session not to be missed ! Social media The social media session is always a highly competitive one and we know that businesses are relying more and more on those people who manage their social channels. That’s why this year we’ll be putting our winners on the stage, to talk about the challenges they’re facing and hand out some awards! Make sure you’re included by emailing me your details. Don’t miss next month’s issue of the magazine where we’ll be announcing the details of these, but in the meantime don’t forget to register at cardealerexpo.co.uk or email me (rebecca@blackballmedia.co.uk) if you want to be involved with any of the above.

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 | 23

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Behind the scenes REBECCA CHAPLIN

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

Make your resolution for 2018 to use less – we’ll all gain far more for it

here’s no denying it: the way we treat the Earth is destructive. It might not be a pleasant topic between the pages of a magazine dedicated to those selling cars, but it’s a fact, nonetheless. It’s not all about petrol and diesel cars though, despite the attention they receive in the media. Wider forms of transport play a huge part – just look at those massive ships ferrying goods around the world for us, as well as manufacturing plants pushing out vast amounts of fumes into the atmosphere. Investment for the industry around new technologies is a fantastic thing, but in my opinion we’re still not educating people properly about the impact of how they are living their lives. Today I sat on a plane that was consuming masses of fuel, but what really struck me was how everything served purely as a convenience to us was so wasteful – every tiny pack of butter wrapped in plastic, the tiny toothpaste and tiny salad dressing, the plastic-wrapped blankets and gift bags, accompanied by plastic bottles – turning up in my hotel afterwards to find every teabag wrapped in plastic, coffee neatly packaged in more plastic, with paper cups rather than reusable and ceramic mugs. Then there’s sitting in my car with the heated seats on, planted on leather and powered by a diesel engine. But what does this have to do with you, you must be thinking? Your customers are served coffee from a machine that uses exactly the right amount and you’ve never had the need to bulk-order tiny butter. And if a customer wants all those added extras – well, I know there’s no way you’re going to advise them to untick anything on the option list. A press release flew into my inbox today, explaining that the big switch from people actually buying their own cars to leasing them is down to the increased acceptance of products such as Netflix and Spotify. My first thought was, well, what about Blockbuster, when everyone used to head over there on a Saturday night to rent a VHS tape with their membership card? But then it did get me thinking that we’ve always wanted as much for our money as possible, and technology has made everything so available that we’re bingeing on everything we can – just because it’s there.

It’s a new year, and for this set of 365 days I think your resolution should be to use less. Not because Theresa May has suddenly jumped on the bandwagon, not to save money or make up for our carbon footprint, but – in the words of Bill and Ted – to be excellent to one another. It’s more than just cutting down on paper and plastic. Could you change your energy supplier to one that uses wind or water to generate electricity? You may even be able to recycle some of that waste into energy for your site. Why not make an effort to use less energy with different lighting or heating? It’s really not all doom and gloom, because there are new technologies and companies out there ready to help us find a way of doing things by using less power and by producing less waste. It doesn’t stop there though, because the role of the car dealer as educator to consumers about what they actually need is more important than ever. There’s been enough scaremongering going around, and people are now buying more petrols instead of diesels. That has seen the average emissions of cars increase – only slightly, but it’s the first time that it’s increased in 20 years. How many car buyers would turn around and say, ‘well, I didn’t realise it was going to have that impact’, just as those who switched to diesel many moons ago continue to blame the government for their own lack of understanding of the second-biggest purchase of their lives? In the same vein, more people are switching to used rather than opting for the cleaner diesel they might have bought, while I’ve got to admit that the idea of reusing cars rather than producing more than we need also appeals to me. Then there are those who are buying an SUV to drive 10 miles to drop their kids at school when really an electric car, plug-in or even petrol might be better suited to them. And don’t get me started on the ones who drop their children off less than a mile away from home – but telling people how to raise their children might lose you a sale altogether… Without blasting you too much with my hippy manifesto, even if every sales person who reads this made one positive impact this week, maybe the world would be a nicer place.

‘What really struck me was how everything served purely as a convenience to us was so wasteful.’

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

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Big Mike Our man on the inside shares his thoughts on the car business

Decent older cars are being binned – how does that help the environment?

ast month, I had a rant about the supposed imminent demise of diesel, but there’s another issue looming large that’s about to kick the independent trader even harder in the nuts. My big bugbear for 2018, then, is the return of ‘scrappage’, a word invented back in 2009 to kick-start the ailing car industry as it was mired in the midst of the global financial crisis. Back then, the scrappage scheme was an official thing, backed by government, and was based on a similar ‘cash for clunkers’ idea pioneered in the USA. If you chopped in a car over 10 years old, it had a minimum guaranteed value of £2,000 – a grand from the car manufacturer concerned, and another bag of sand from HM Treasury. It was a win-win for those flogging new motors, as they’d probably have given a grand for a decent 10-year old part-exer anyway, and the extra money concocted by the government gave the customer a healthy two-grand saving. Back in the days when I was dealing in new stuff, there was usually a couple of grand on the bonnet anyway with which to entice the customer, so all the scheme really did was reduce the need for the customer to haggle and ensure the dealer’s profitability. The Koreans were the big winners. By stacking them high and selling them cheap, Hyundai i10s, Kia Picantos and even Chevrolet Matizes were flying off the forecourts faster than you could say ‘Jack Robinson’, whoever the hell he was. Meanwhile, smaller independents like me were having the rug pulled out from beneath us. I used to go to great lengths to source really nice older cars, and I had customers queuing up for them. Back then, it was lovely old Volvos, Jaguars, Vauxhall Omegas and the odd big Rover or Lexus on which I made the big bangs, and cherished one-owner Corsas, Fiestas and Metros that I could sell all day long, with my eyes shut, hanging upside down from a pole. And to prove it, I did this once (at risk of serious injury) after losing a bet to my then apprentice, Jason, who obviously learned a lot from me as he’s now a supercar dealer. I, meanwhile, have learned diddly squat, and still peddle older but very well-presented cars from a backstreet lot in the suburbs of Birmingham, and I was happy with that. But now I’m not, because the spectre of scrappage has suddenly loomed large once again. The difference, this time, is that the

government isn’t getting involved – at least not directly, though I’m sure part of the blame can be laid on Brexit. Why? Well, new car punters are fickle. Remember, these are generally people who don’t take risks, and a five-year warranty, fixed monthly payments and a paid-in-advance service plan mean they can balance their books with tedious predictability. For the generation that lives on credit, it’s how they roll. Until the credit runs dry… And that’s what’s happening. Lenders have tightened their belts, whilst the continually moving goalposts of environmental legislation and car taxation are leaving many people baffled, including half of the motor trade. We have Michael Gove to thank for that, but best not to get me started on him again. Factor in rising interest rates, and those who have been cruising along with ridiculously cheap lending are suddenly finding they’ve bitten off more than they can chew. As a result, they’re not setting foot in dealerships, so the car makers are chasing down a different type of customer. The very same kind who chopped in their last car on scrappage. It’s no coincidence, I’m certain, that the vast majority of manufacturer-led ‘scrappage’ schemes have a seemingly random cut-off date of January 2010, with cars that are just eight years old going to meet their maker. After all, that’s when the last wave of scrappage customers bought their cars. Solvent, middle-class, often cash customers who kept the metal moving and saved the industry from collapse. And while there’s no legal statute this time that ensures cars are scrapped, that’s what’s happening to the vast majority. Those participating are hiding behind a banner of being environmentally friendly when crushing them, but in truth they’re just reducing the number of used cars available on the market as – like housing – a shortage of existing vehicles means there are more and more people who look at buying a new one. And that, folks, is hurting me in more ways than one. First, it’s eating up a lot of the supply of smart, well-maintained low-mileage cars that are perfectly serviceable. But more than that, it’s throwing away perfectly good cars that have absolutely nothing wrong with them, and no matter how I try and look at it, I can’t see any environmental benefit to that. Oh, and Jack Robinson? According to Wikipedia he was a stubborn English gentleman who liked to change his mind a lot. If he were around today, he’d make a cracking politician. So as fast as you can say ‘Michael Gove’, Happy New Year.

My big bugbear for 2018 is the return of ‘scrappage’

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 | 27

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

Our website at CarDealerMag.co.uk

How far should we go to RECENTLY, I had a guy call back a couple of weeks after buying a 2007 Astra. He’d had problems with his battery and said he’d had to jump-start the car on several occasions. He was polite and not really asking for anything but advice on what to do. I suggested he went to get the battery voltage read and go from there. Turns out the battery was completely dead (probably the original). He then called back and asked if I was willing to help towards the cost of a new battery. I offered to pay half (£40) as I put away £100 from each car for this sort of situation. Now, I made it very clear that this was a goodwill gesture and that I wasn’t liable for consumable items like this, but he was nice about how he dealt with it and he left me a cracking review via Auto Trader. He was really surprised and pleased that I was willing to help. So my question is, how much goodwill do you guys show towards customers? ASP I go on my gut feelings and not any hard and fast rules over ‘goodwill’. I recently had a lady pick up a car from me on a Sunday afternoon and ring me on her way home to say she’d got a flat tyre. I went out and changed it for her. I’m generally not a soft touch, though. met We’re the same as you – a small goodwill gesture MAY prevent them coming back if anything further happens. I think you can tell from the customer – if you can tell that the customer will accept a goodwill gesture and then leave you alone then we used to give a gesture of goodwill. But as a general rule, if you’re too nice, they will take advantage. Now we do the Lawgistics PDI – anything we find is noted down and the customer signs to accept that. Shows the condition of the car at the point of sale. Started doing these after customers took advantage. As an example, we once had a

Picture of the month Yes, we know it’s almost the end of January/ beginning of February – and that Christmas is just a distant memory now, but we hope you’ll forgive us as we share a little snap from the festive season. It’s Blackball Media’s MD, Andy Entwistle, all dressed up like a festive elf for the company’s strategy day, which was held in the run-up to the Christmas break. Everyone else just donned seasonal jumpers for the occasion but Andy went one better, as you can see! He was certainly in the correct attire to deliver his company presentation on elf and safety...

customer who bought a 2004 C-MAX. The air conditioning wasn’t working as well as it should, and we tested this on the test-drive so the customer was fully aware it didn’t work. However, they called back a couple of days later saying the A/C wasn’t working and they had found a broken pipe. We knew that was rubbish as the A/C was working, just very weak. But you could tell they’d have moaned if we didn’t do anything (and without a PDI at that point, we couldn’t prove what had been tested and said on the test-drive), so we sent £50 to cover a new A/C pipe. We didn’t get a thank you – and we asked for

the invoice to prove they bought the part. That never arrived either. (Funny that they wanted a £50 discount at the point of sale, which we declined.) D&M With batteries, I put myself in the customer’s shoes: new car, dead battery – very annoying. I find it happens so rarely (if you check and PDI the car properly) that it’s best to stump up for a new one. I do only pay the trade price though or supply them one myself. If they demand on getting this (or any) part and I’ve agreed to pay or contribute towards it, I always insist on them sending the purchase receipt before I reimburse them. You’ll be surprised at how often this doesn’t happen and the ‘problem’ disappears! The battery issues aside – I’m probably too soft (at least initially) but I can’t be doing with dealing with an idiot over the ‘small stuff’ which is ‘big stuff’ to them. Best to get them out of your life. As a caveat: I explain it’s a one-off goodwill gesture. Now, do I go home already? Hmmm... NOACROSS Depends how the customer is, frankly, but we cover probably 90 per cent of issues. If you can sense they’re gonna be back every two minutes because a consumable has reached the end of its life and they don’t want to pay for it, we’re firm but most people I generally find quite nice about the whole thing if you’re honest and show you’re not going to fob them off without listening first. Paying for the parts whilst the punter pays for the fitting is often how we approach it. That way we can get cheap bits from somewhere and they can choose a garage they trust to fit them as we don’t have a mechanic or one of our approved garages if they’re local. Recently done a battery, filters, clutch and other bits... all of the customers were pleasant and I dare say some will recommend us to friends as we were helpful. grant8064

A little bit of advice on taking in part-exchanges, please! I’ve got a couple of cars at the moment which are more than likely going to attract somebody looking to PX their current vehicle. Being relatively new to the game, and having only stocked first-time-buyer sort of cars, I’ve never actually taken a car in PX (although every advert I’ve placed since I started has said PX welcome). Trading from home and keeping my overheads low, I don’t use CAP or Glass’s, and use Auto Trader search within 60 miles of my

30 | CarDealerMag.co.uk

home to value the cars I buy at the block. Just wondering how you guys in the same situation as me value PXs. Do you simply do what I normally do, search AT to find the retail price and then deduct to get the margin I want from their PX? I will of course be retailing whatever comes my way. ASP ASP, you are doing the right thing, it’s called

‘retail back’. It’s standard practice, simply look at your local competition and price accordingly. Arfur Dealy I had never heard the term ‘retail back’ before, but we have been doing that for years. At the end of the day, it has always been a great feeling to do a deal and get a good swapper in ‘right’. trade vet

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

On Twitter: Follow @CarDealerMag

Forum: CarDealerMagazine.co.uk/forum

show some goodwill? Top tweets Say ‘hello’ to the all new Musso pick-up: onetonne payload & 3.5-tonne towing capacity. Coming to your SsangYong dealer later this year! #SsangYong #Musso #pickup SsangYong Motor UK @SYMotorUK CO2 emissions have risen for the first time in two decades following a ‘backlash’ against diesel cars. Sky News @SkyNews We’re kicking off 2018 with three exciting steps for Car Store, as our brand new #Norwich, #Ipswich and #Shrewsbury sites open in January. With state-of-the-art equipment,

these purpose-built sites will be welcoming our new team members and customers in the next few weeks. Pendragon PLC @PendragonPLC Did you know that in 1934 the British government announced that road signs were to be standardised, including a sign for ‘Main Road Ahead’, but surprisingly no ‘Stop’ sign? #WednesdayWisdom MarshallTradeParts @cambridgeparts Perfect Motability mystery shop scores achieved by James Redman in December. JCT600 @jct600

FEEDBACK

So is my buyer really north of the border? I SOLD a car about two weeks ago, the guy came and looked at it, test-drove it etc. We agreed a PX price for his car and he left a deposit as he needed to get the private plate off his first. I called him about a week later as I hadn’t heard from him and he tells me he’s now in Scotland as he had to go up and look after a poorly family member. Tells me he will be back some time in January and I can either refund his deposit or keep the car for him until then. I told him it’s not possible to keep the car that long. The deposit was £500 and he said to send some of his deposit back but not sure about how much (if any). I then got an email last night saying he will be back on February 14 and if I can’t keep it until then, he wants his deposit back. What would you guys do? I don’t believe for one minute he’s gone to Scotland for nearly three months and his biggest concern is his deposit. rich89 It would be pretty low to lie about having a poorly family member. I would give him his money back. It sounds as though he has enough on his plate. He might come back and buy one at a later date. Or if you have doubts... hold onto £100 and give him a credit note for £100 to be used against any future purchases. Stalker

If you’ve got nothing documented, give the money back. I had a bad review when we first started with something similar to this, and it cost me more in time than the deposit was worth. Refund him and wish him all the best. LISL There is a chance that even if you give him a refund that you may be stuck with the car until February anyway. £500 is a fairly healthy deposit so I would be inclined to give him the benefit of the doubt and wait. If he is a no-show in February, then you keep all of the deposit and re-advertise it. Max Branning Refund less prep costs, re-advertise it and put it to bed. Always the best way to go from my experience. Why cling on to bad vibes and surround yourself with negative thoughts and worry, unless you’re THAT in need of a sale. We always take a minimum deposit of £250 even if the vehicle is full on finance. We refund when the customer signs up. If the buyer pulls out after paying the deposit, we refund minus any prep costs. Our prep costs are MOT and full service charges and are clearly stated on our deposit sheets. We always point this out to the customer at the deposit stage. Earunder

Mr Robinson picking up his NEW #Peugeot 3008 from Sam at Simon Bailes Stockton! Mr Robinson said: ‘I’m very happy with my new car, I absolutely love the NEW 3008! Big thank you to Sam and the staff at Simon Bailes! Can’t wait to get out on the road.’ #HappyDriving Simon Bailes Peugeot @sbpeugeot

Our nice little Auris hasn’t had a sniff.. should we give up? WE’VE got a Toyota Auris in stock – we knew it’d take a little while to shift as we mostly trade online so rely on customers searching for the cars. Just over three months now, and not a sniff. Two lady owners, two keys, nice miles and history. We put an MOT on it with no advisories. Thought it’d be a safe bet, as we see loads on the roads around here! When we worked on a small forecourt, the owner had cars on the lot that had been there over a year and had no interest in trading out/adjusting price/different advertising. They’d just sit until they sold. When do you throw in the towel and trade out a lot to let another trader have a go? D&M I always sit on my cars until they’re sold. If I have bought it, I stand by it. My approach teaches me desirability and saleability because this trade is so fickle you have to constantly change. Arfur Dealy In stock for three months, don’t panic, maybe knock £200/£300 off, but prices will rise by Feb. It happens to us all. When the financial crash hit in 2008, we all were taking huge hits on a lot of stock in order to get them away. trade vet

easier to get involved! Sign up to our forum at CarDealerMagazine.co.uk/forum

The publisher reserves the right to edit submissions.

CarDealerMag.co.uk | 31

Dashboard. Around the world Dealer news from somewhere other than here

Hard-hitting comment from Car Dealer’s boss.

James Baggott: p114 GERMANY

SHORTLY before Christmas, Audi recalled 330,000 cars in Germany because of possible problems with electrical connections for their auxiliary heaters that could cause fires. A company spokesman said the recall affected A4, A5, A5 Cabriolet and Q5 models built between April 2011 and May 2015. A few customers had reported a smell of burning in their cars but there had been no fires or other damage, the Reuters news website reported.

CANADA

WORK is getting under way on what will be the largest Toyota dealership in Canada. The development, by Open Road Toyota of Richmond, Vancouver, will have more than 15,000 square feet of showroom space enabling the dealership to display 36 vehicles over two levels. Dealer principal Christian Chia said the new facility would see the business continue to deliver excellent levels of customer service.

ZIMBABWE

AN ex-football star has become one of the country’s bestknown car dealers after an injury ended his career on the pitch. Dumisani Mpofu, who runs Goldline Car Sales and Hire in Harare, said: ‘What I had planned is not what happened because I broke my leg when I was at my peak as a footballer. But I am grateful for what God gave me in the end.’

AUSTRALIA

JAGUAR Land Rover is looking to open more retail stores across Australia in 2018, having established its first one at a shopping mall in Sydney recently. JLR’s Australian managing director Matthew Weisner said: ‘I can see three or four facilities around the country over the next two or three years.’ He told the CarsGuide website that the Sydney set-up had taken about two years to put together and added: ‘It’s there to enhance our existing way of doing business. Dealers are fine with it. We’ve made it clear that we have no intention of going out and doing retail by ourselves – dealers are our retail body.’

CHINA

PORSCHE has just opened its 100th dealership in China – but it’s not a traditional dealership, reports the Carscoops website. Described as a ‘Porsche studio,’ it is situated within a posh shopping centre in Guangzhou, in the south-east of the country. In recent years, China has become Porsche’s largest single market, with its four-door sports cars proving especially popular.

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

32 | CarDealerMag.co.uk

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Dashboard.

Part 10: Warranties You might be selling an entire motor car, but some customers care more about the little booklet that comes with it… Dan Read explains.

ype ‘used car warranties’ into Google and you’ll be presented with more than 40 million results, from companies flogging them, to ratings and slatings, to whole forums of angry buyers with stories of suppliers refusing to pay out. So how do you

make sense of it all? What separates a decent warranty from a dodgy one? And how do you make sure the one you offer is worth the paper it’s written on? Sit down, take a deep breath and prepare to become an instant expert.

SHOULD I PROVIDE A WARRANTY?

and the warranty provider, you have acted as an agent and therefore – in order to offer this type of warranty – you must be authorised by the Financial Conduct Authority. Sales of these insurance-backed warranties are subject to Insurance Premium Tax (IPT) but not to VAT. Pros: Potentially greater protection for both dealer and customer, customer is covered if you cease trading. Cons: Requires FCA registration, IPT cannot be reclaimed, premiums can hurt profit.

Firstly, there’s no legal obligation whatsoever to provide a warranty – a customer already has a considerable level of protection and comeback under the Consumer Rights Act (see part 9 of this series). However, most buyers will expect some sort of warranty, even on a budget car. ‘There’s a general customer perception that a warranty should be provided,’ says Graham Jones of Lawdata. ‘It can also be a useful way of managing a customer’s expectations and helping to deal with any claims that may be received.’ Sound advice, but before you start drawing up a DIY policy, take a moment to listen to Nona Bowkis from Lawgistics, the motor trade legal experts. ‘If you’re going to offer a warranty, do it properly,’ she says. ‘It has to be detailed. It’s no good writing ‘‘three-month engine and gearbox warranty’’ on the invoice. That’s worthless and will trip you up in court. If something goes wrong with a wear and tear item, which isn’t normally covered under the Consumer Rights Act, or even under a good warranty, you could be liable for a big bill.’ So how exactly should it be done? In a nutshell, there are three main ways of offering a warranty, all of which have their pros and cons. Here are your options:

1. INSURED Put simply, you buy a policy from a provider who then deals with any claims and pays for any repairs they agree to undertake. The risk is underwritten by an insurer, much like your home insurance – which explains why this type of warranty is, generally speaking, the most expensive. You will pay a premium per vehicle, the cost of which depends on the level of cover offered by the supplier and the age/ mileage of the car being covered. While the contract is ultimately between your customer

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2. UNINSURED Similar to above, you buy a warranty from a provider for a premium, only that provider takes on the risk rather than passing it to an underwriter. Essentially it’s an agreement between you and a provider, who agrees to administer and pay for claims, although this does not constitute a contract of insurance. Instead, it’s considered a contract of service. Therefore, you don’t have to be registered with the FCA, and rather than being subject to IPT (which you can’t reclaim) the sale is subject to VAT (which you can). These are sometimes referred to as ‘obliger’ warranties, and are often offered by the same companies who provide insurance-backed schemes. Pros: VAT can be reclaimed, no need for FCA authorisation, generally more affordable than insured policies. Cons: Relies on service of third-party provider, dealer has limited control over claims.

‘A dealer running their own scheme has to be very rigorous.’ Keith Pipe, WMS Group

3. SELF-FUNDED This one is simple: if the car breaks and it’s covered by the warranty, you’ll pay for it. The idea is that you put a cut from each sale into a dedicated pot, to cover any claims that may arise. You should give the buyer a proper policy booklet with the correct wording – you can source these from various suppliers such as Lawgistics, Lawdata and countless others. You can then choose whether to administer the policy yourself (from taking calls from customers to dealing with repairers), or take the more popular approach and appoint someone to do it for you – usually it’ll be the company that provided your booklet. Some warranty administrators will also hold your funds, so they are able to pay out quickly when necessary, then refund the surplus at the end of the year. Pros: More affordable, puts you in control, you only pay for claims if and when they happen. Cons: You take on more risk, requires disciplined saving, self-administration can pose problems if customer is not local.

WHICH ONE IS RIGHT FOR ME? ‘One size doesn’t fit all,’ says Keith Pipe of WMS Group. ‘However, the majority of non-franchised, independent dealers would probably opt for an uninsured scheme. The reason for that is that the dealer doesn’t have to pass any FCA exams, and he or she can claim their VAT back whereas on an insured product the insurance premium tax is not reclaimable.’ What about the bells-and-whistles, insurancebacked products? They might cost more, but the

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idea is that everyone has more peace of mind. ‘The customer is more secure in the event that the warranty administrator or dealer ceases trading,’ says Pipe. ‘The dealer has effectively sold an insurance product, so the risk sits with the insurer.’ On top of that, a fully insured product also gives the customer a certain amount of confidence in the deal. Then there are self-funded schemes, which are becoming increasingly popular among independent dealers who don’t want to pour their potential profit into third-party warranties when they could be running their own pot (and reinvesting funds once they reach a certain level). ‘A dealer running their own scheme has to be very rigorous,’ says Pipe. ‘Sometimes there’s a temptation to spend money intended for warranties on new stock. Also, the numbers have to work – a dealer selling 12 cars a month doing his own fund probably won’t work. But doing in excess of 20, his own fund becomes more viable. So it doesn’t work for everybody.’ Of course, the key to all of this is good car prep. If you source good stock and make sure cars leave your showroom in top condition, you will ultimately have fewer claims to handle and be more confident in running your own warranty.

HOW MUCH WILL IT COST? If you’re self-funding, it’s really up to you, but put aside a sensible amount per sale, say £150-£200 for a run-of-the-mill car. And don’t forget the admin fee if you have someone administer the warranty for you – expect to pay somewhere around £15 per vehicle, or less if you’re taking out several policies with the same supplier. As for third-party products, it depends on what type of policy you go for, what cars you sell, their age and mileage and what deal you strike with the warranty provider. Let’s say you’re an independent dealer selling everyday, affordable cars. ‘For argument’s sake,’ says Pipe, ‘a six-month policy could cost £100 for a fairly comprehensive level of cover – either plus IPT or VAT depending on whether it’s insured or uninsured. That’s a ballpark figure – premiums are higher for more expensive cars.’

revert to the Consumer Rights Act. But if you have a good attitude and handle things correctly, it shouldn’t come to that. ‘At the end of the day, it’s the consumer that must be protected,’ says Pipe. ‘If the dealer can put the best level of cover on that vehicle at the time of purchase, generally things go smoothly. The days of buying cheap cover to save 30 quid have gone.’

AND ANOTHER THING... Remember: any form of warranty is an addition to the customer’s statutory rights, but it does not replace them. If a problem can’t be resolved under the terms of a warranty, a customer can

CarDealerMag.co.uk | 35

Finance. SSANGYONG MOTOR UK

CAP HPI

John joins as director of financial services

Promotion sees James as head of sales finance

SSANGYONG Motor UK parent company Bassadone Automotive Group has appointed John Chisholm as its director of financial services. In this new position, he will manage the group’s provision of financial services across Europe, and particularly for SsangYong in the UK. Chisholm was previously chief executive of financial services at Mitsubishi Motors UK. Kevin Jones, chief executive of Bassadone, said: ‘John’s appointment further demonstrates our continued commitment to ensuring the success of SsangYong.’ Nick Laird, managing director of SsangYong Motor UK, said: ‘As we develop both our fleet and retail business, it is essential we provide first-class financial services.’

NEW YEAR, NEW DEALS

Kia starts 2018 with a range of offers during first quarter K

ia Motors (UK) Ltd began 2018 with a range of offers across its model line-up, from finance deals through to free home charging points and installation for its EV and PHEV models. The headline offer is the SUV Event, showcasing its sport utility vehicles across the 191-strong dealer network in January. Kia Care-3, covering the first three scheduled services, is available free for customers looking to buy a new SUV on orders taken between January 1 and 31 and registered by March 31. Models available include the Stonic, Sorento, Niro and All-New Niro PHEV plus the Sportage, Soul and Soul EV. The recently launched Sorento, offering a range of upgrades, has a Car contribution Dealer Advert Horizontal 2.pdf 2 £2,000 deposit towards C

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PCP. The other models in the SUV Event have deposit allowances starting from £500 up to £3,000, depending on the model. In addition, they are all available with finance options through the quarter, with 4.9 per cent APR. Kia’s scrappage scheme is also being extended to the end of March, with a £2,000 scrappage bonus 01/03/2017 available13:37:03 on the All-New Picanto

and Rio to motorists trading in their previous seven-year-or-older vehicle. The bonus is available with 4.9 per cent APR finance but is in lieu of all other offers and on retail sales only. For customers wanting to ‘go green’ and buy a Soul EV, Niro PHEV or Optima PHEV, Kia is offering a free home charging point and standard installation at no cost as well – ensuring that the vehicle is fully charged when people need it. For people who are unable to decide between the Optima Saloon and the Sportswagon, a free upgrade is available, making both available at the same on-the-road price, starting from £22,455. Further benefits include 4.9 per cent APR with a £1,000 deposit contribution towards PCP.

AUTOMOTIVE data expert Cap HPI has promoted James Pass to the role of head of finance for sales. He joined the firm in 2013 as a key account manager, having spent seven years in the banking sector. In his new role, he will lead the finance sector team and help the continued expansion of the business, reporting directly to UK sales director John Dennis, who said: ‘James has been a key player in the recent success of the business, playing a pivotal strategic role in securing major client relationships and displaying real leadership qualities, helping to underpin Cap HPI’s finance sector data solution capabilities. ‘This promotion is richly deserved and further evidence of how we continue to retain and invest in our team and the best people the sector has to offer.’ Pass said: ‘This is a great opportunity for me and I’m very much looking forward to the challenge. With a very talented team around me, combined with a positive global vision, 2018 is shaping up to be a very exciting year indeed.’

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Time is money BEN GARSIDE

A monthly look at the world of automotive finance and marketing

An important habit to get into is beginning with the end in mind

ver the Christmas period, I was at a meal with a group of my closest friends when one of them cornered me and asked if I could help him by building him a new simple (‘simple’ being ‘easy to make’) website. While I love my friends, I knew this needed more thought. I got into questioning him on what he was after, and after a while we came to the conclusion that what he really wanted wasn’t a simple website at all. What he was trying to achieve was an all-singing, alldancing e-commerce website with all the bells and whistles on, full automation, email processing, etc. He actually wanted to start with just one part and keep building parts on. However, this approach can be very complicated in the long run. To put this into a motors context, he wanted to buy a basic car in the showroom and then, a few months later, build in reversing sensors/cameras, then autonomous driving, and then air con. OK, I may be slightly exaggerating, but what he actually wanted as a website and then achieve with it was significantly different. This made me remember the second habit from the book The 7 Habits of Highly Effective People – begin with the end in mind. Author Stephen R Covey says this habit is to start each day with a clear understanding of desired outcomes – and the habit can be applied to the website my friend wanted me to build. While Covey was talking about personal objectives and goals, I believe that when building a website or starting a project, the ‘end product’ needs to be where you start from.

Luckily, my friend had sourced professional assistance upfront and now wouldn’t make any major mistakes. But how many people or businesses will cut corners? By cutting corners, I’m talking about on price, without planning, jumping in feet first and trying to do it themselves, or sourcing a professional with the wrong credentials to build a site they think they need and not what they actually require. Most of these are because of budget restrictions, and in my view you get what you pay for, so budget correctly! Your website is your shop front, and something this important needs to be built and designed correctly, professionally and finished to a high standard. If you get it wrong, it can take a long time to fix, especially from a search engine optimisation and user experience perspective. So my advice would be to pick a professional company that has great reviews, has experience building a website like (or better than) the one you want, that is fully aware of SEO requirements and can prove high search-engine results. This should mean you get what you really want from your website. If you’re thinking of designing and building a website yourself owing to budget restrictions and have no experience, I’d advise against it. But if you must, get yourself on a professional training course first. There are quite a few decent courses, and you can take the learning at your own pace via online seminars with a few of them. Then, once you get started, build a test site to try out your new-found skills. Please don’t go to market until you’ve tested, tested again and then finally tested for a third time, though. Remember: always begin with the end in mind.

‘What he was trying to achieve was an all-singing, all-dancing e-commerce website.’

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

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CarDealerMag.co.uk | 37

Dealfinder.

Finance. YOUR ESSENTIAL GUIDE TO . . . LARGE 4X4s

Audi Q7

Range Rover

AUDI’S largest off-roader has been on sale for a few years now but it doesn’t mean the Q7 isn’t worth considering. It’s spacious, extremely comfortable and looks smart, too. The ‘sporty’ S Line trim is our pick here, and comes with 20-inch alloy wheels, LED front and rear lights, and leather and Alcantara electric seats. The engine is the 218bhp 3.0-litre TDI quattro paired with a Tiptronic automatic gearbox. Audi is currently offering a £2,000 deposit contribution, with the customer having to pay a deposit of £8,000. There are then 35 monthly payments of £593.45, after which the customer will have paid £28,770.75. If they then want to buy their Q7, they can pay a final sum of £29,108.95 and the option-to-purchase fee of £10, bringing the total amount payable by the customer to £57,889.70.

WITH winter well and truly in full swing, you’d struggle to go wrong with one of the best off-roaders out there – the Range Rover. A new model year 2018 Range Rover has just gone on sale and is the one included in this finance offer – we’ve chosen the smooth 3.0-litre TDV6 diesel engine in this instance. The ‘entry-level’ Vogue comes with such a long equipment list, it makes you wonder why you would consider any other model. Twenty-inch alloy wheels, a panoramic roof, 20-way electric seats and matrix LED headlights all come as standard. A 37-month contract requires a £15,000 deposit, followed by 36 monthly payments of £907.80. At the end of the contract, the customer will have paid £47,680.80. If they then choose to buy the vehicle, they’ll have to stump up £43,068, bringing the total amount payable by them to £90,748.80.

SURVEY

Car dealers ‘confident about their prospects for the year ahead’ E

xclusive findings from Close Brothers Motor Finance’s Dealer Satisfaction Survey reveal that the majority of motor dealers – 92 per cent – are confident about business prospects in the market for 2018, up from 63 per cent last year. The Dealer Satisfaction Survey is a continual telephone survey and reported on a quarterly basis. A total of 200 new and used car dealerships across the UK are polled to help provide a picture of dealer trends. This particular survey – carried out between August and October – asked dealers about their business performance, their prospects for the year ahead, and what they see as the biggest challenges and opportunities for their business. The research found that one in seven dealers

by JOHN BOWMAN john@blackballmedia.co.uk

sees the expansion of the different types of vehicles on offer and maintaining stability as the two biggest opportunities for the year ahead. One in 10 sees the proliferation of new finance products and a similar number (nine per cent) sees changes in consumer behaviour as the biggest opportunity for 2018. Conversely, just over a fifth (21 per cent) believe that Brexit is the greatest threat to their business over the coming 12 months, followed closely by an economic downturn (17 per cent) and legislation and regulation (11 per cent). Despite this, the survey found that 57 per cent

Car Dealer Advert Horizontal 1.pdf 1 01/03/2017 13:36:04

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of dealers were very confident and 40 per cent were fairly confident about the business outlook for their own firms in 2018. Chris Bosworth, pictured, director of strategy at Close Brothers Motor Finance, said: ‘With technology evolving, consumer behaviour changing and the heightened political and economic uncertainty since the Brexit vote in 2016, it’s positive that dealers are feeling confident for the year ahead. ‘It’s interesting that dealers cite the expansion of the new types of vehicles on offer as one of the biggest opportunities for their businesses.’

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

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Skoda Kodiaq FOR those on a tighter budget but wanting a large seven-seat SUV, the smart-looking and practical Skoda Kodiaq makes a fine choice. The Kodiaq here is in SE L trim that offers a long list of equipment, including 19-inch alloy wheels, LED headlights and 9.2-inch touchscreen with satellite navigation and integrated wi-fi. It also has the range-topping 187bhp 2.0-litre TDI engine with fourwheel drive and DSG automatic transmission. The customer’s deposit of £5,170.50 is topped up by the Skoda dealership’s contribution of £2,000. Thirty-five monthly payments of £412.42 mean that at the end of the 36-month contract the customer will have paid £19,605.20. If they then want to buy the vehicle, they can pay a final sum of £16,881.30. They will also have to pay the option-to-purchase fee of £10, bringing the total amount payable by the customer to £36,496.50.

ASE

FLA

Tough November sees retailers make an average loss of £19,000 per site

Consumer new car finance volumes fall by eight per cent

MOTOR retailers had an expectedly tough month in November, posting an average loss of £19,000 per site – £6,000 greater than in November 2016, according to the latest figures from profitability experts ASE. The loss pushed the rolling 12-month return on sales below one per cent again, but overall profitability hasn’t weakened. Given the drop in registration levels forecast for 2018, ASE expects turnover levels to fall, with the challenge for retailers being to maintain current profit levels. While the registration statistics have looked relatively poor, particularly for November, where there was an 11.2 per cent drop, the overall level of new vehicle sales was comparable to the prior year, indicating that the reduction in performance was a result of reduced self-registrations. Used car performance remained the shining star of the second half of the year. Despite significant levels of stock, retailers increased their volumes of used car sales and are maintaining an acceptable stock turn.

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NEW figures released in January by the Finance & Leasing Association show that new business volumes in the point-ofsale consumer new car finance market fell by eight per cent in November, compared with the same month in 2016. However, the value of new business increased by two per cent over the same period. Geraldine Kilkelly, head of research and chief economist at the FLA, said: ‘The POS consumer car finance market remains on target to report new business volumes of 2.3 million in 2017 as a whole – a similar level to 2016. ‘The performance of the POS consumer new car finance market in November continued to reflect trends in private new car sales. FLA members’ penetration of this market has held steady over the past year at around 86 per cent.’

CarDealerMag.co.uk | 39

Forecourt. FIRST DRIVE

Alpine A110 Rebecca Chaplin enjoys some Gallic glamour as an iconic sports car is reborn THE KNOWLEDGE Model as tested: Alpine A110 Premiere Edition Price: £50,500 Engine: 1.8-litre, four-cylinder Power: 248bhp Torque: 320Nm Max speed: 156mph 0-60mph: 4.3 seconds MPG: 46.3 Emissions (g/km): 138g/km TARGET BUYERS: Sports car lovers with a craving for French fancies. THE RIVALS: Porsche 718 Cayman, Audi TT, Alfa Romeo 4C. KEY SELLING POINTS: 1. There’s nothing else like it on the market. 2. Great for modern and classic car buyers alike. 3. Fantastic as an everyday driving car. DEAL CLINCHER: For this price, you’ll get nothing close to the eyecatchingly unique A110.

What is it? The Alpine A110 Berlinette might not have been sold in the UK for long but its reputation for rallying in the ’60s and ’70s precedes it. So creating a new edition, imagined as six or seven generations down the line, is a dangerous game to play but the risk has proved worth taking.

What’s new? The A110 has been designed from the ground up by a small team in France. It’s let them develop a car that’s completely new – one that’s focused on driving but can stand up as a true style icon. There are some clear transfers of design from the original model, such as the bonnet spine, twin auxiliary lamps and design sculpted into the door. Everything has been dialled up to 11 though and a sense of modern style complements every retro hint. This has been combined with clever 40 | CarDealerMag.co.uk

Headlights

The Alpine A110’s headlights echo those of the classic version from the ’60s with the iconic spotlights.

Bodywork

The A110 has minute proportions and weighs little over a tonne, making it nimble on the roads.

engineering developments to create the car that founder Jean Rédelé would be proud of.

What’s under the bonnet? The A110 features the 1.8-litre four-cylinder engine taken from the Renault Megane. As the car is mid-engined, weight is distributed close to 50/50 with the centre of gravity around the driver’s hips. It produces 248bhp and 320Nm of torque, giving it a 0-60mph time of merely 4.3 seconds and a top speed of 156mph. Throttle response and power delivery are almost instant, while it also produces an incredible noise.

What’s it like to drive? The A110 is inspiring and invigorating with direct steering, and the weight distribution enables you to power effortlessly around corners – even

navigating along the narrowest of roads doesn’t cause any issues. The suspension is a real success story. It’s been set up to smooth out bumps in the road rather than the hard sports car standard you might expect without losing that sporty driving feel. That makes the A110 a suitable GT car too, if it wasn’t for the lack of luggage space, and very driveable on long journeys.

How does it look? This is one car that has captured the elements of its heritage without becoming disfigured or a caricature of its former self. There’s arguably nothing else on the market to share its design cues, and the attention to detail throughout makes it something very special to behold. The four round headlights create a unique light signature and the Alpine logo brandished across the front completes the vintage look. The design

‘The love in this tribute to the Alpine brand can be felt in every element.’

Behind

The front might be dazzling but the rear is just as unique, and no-one will be wondering what’s driving away from them.

team has retained the key characteristics in profile too, using a huge diffuser under the car to negate the use of a spoiler. The curve along the roofline and subtle flick across the boot distinguish it from any other car on the market.

What’s it like inside? The interior also retains design cues from the original A110 Berlinette, such as the round dials and curved dashboard. It’s inside that you get a real sense of the weight savings that have gone in – or come out – of this car. Lightweight bucket seats with a microfibre material have been used; hints of carbon fibre and exposed aluminium echo this. While the digital dashboard is simple, it also works well. However, the infotainment system is simple to navigate but not as responsive as you’d want, with dated graphics.

What’s the spec like? Currently, the A110 is only available in this Premiere Edition specification, and if you want to get your hands on one you’ll be sorely disappointed. Only 1,955 were produced, in honour of the year the brand was created, and they sold out in five days. This comes in one set-up, with the standard infotainment paired with Focal speakers – and even those are weightsaving. While there’s a choice of colours, little

Magnificent seven sites named as openings set for second quarter ALPINE has now revealed its seven UK partners that will be opening dealerships in the second quarter of 2018. These will be dedicated showrooms with separate entrances – and in some cases completely separate buildings, according to Alpine MD Michael van der Sande. Despite currently only having one model to show off, they’ll be something special for driving enthusiasts. Speaking at the launch of the A110 in Provence, van der Sande said: ‘The audience is people who love driving, so we’ve carefully chosen a sales network that does justice to that – the sort of people who want to talk Alpine over a cup of coffee on a Saturday morning. ‘There will be 57 partners in key cities. There will be 19 in France, 11 in Germany and seven in the UK. One of these will be a brand store studio in London.’ The showroom locations have been named as Arnold Clark Hillington Renault and Dacia Glasgow; Renault Retail Manchester, Orpington, and Solihull; Glyn Hopkin Renault St Albans; Martins Group Winchester; and Studio Alpine London (address to be confirmed). Van der Sande explained that the sites had been chosen for their location but also because of the other franchises nearby. At the launch, Alpine revealed that two new specifications of A110 will become available at the end of this year – Pure and Legende. Buyers who want to get their hands on one will currently have to wait, though, as the initial allocation of 1,955 cars sold out in just five days.

else is customisable. However, two others will be available from 2018. The first, called Pure, is more driver-focused. The second – Legende – is more focused on comfort with plush leather seats.

What do the press think? Evo says: ‘The new Alpine A110 is lighter, faster and in many ways better to drive than a base 718 Cayman’ while Autocar says: ‘The A110 is a gem. In a land of lumpen rocks, it gleams like the brightest jewel.’

What do we think? Alpine has hit the nail on the head and no driver will be disappointed. The attention to detail is apparent throughout, and while other manufacturers might claim passion in their design, the love in this tribute to the Alpine brand can be felt in every element. CarDealerMag.co.uk | 41

Forecourt. FIRST DRIVE

DS 7 Crossback After years of underwhelming offerings, the French brand could finally be on to something with its first full-sized SUV, reckons Darren Cassey

Hybrid

A plug-in hybrid is on the way in 2019, bringing 31 miles of electric-only motoring from two 80kW motors.

What is it? The DS 7 Crossback is DS Automobiles’ first attempt at a full-sized SUV. It’s also the first time the brand has built a car that’s not essentially an extra-posh, rebadged Citroen. The French car maker pitches itself as a premium brand without premium prices, and will be hoping that by entering the lucrative SUV market with a unique model it can really start to offer a viable alternative to the likes of Jaguar and BMW. Since splitting from Citroen into its own distinct brand in 2014, its efforts have been underwhelming to say the least. However, first impressions of the DS 7 are that all that could be about to change.

What’s new? This might be a totally new model but underneath it shares a platform with the Peugeot 3008 – a very good thing indeed. It gives the DS 7 a great starting point, and from there it gets plenty of safety kit, driver aids, decent interior materials and quirky design touches such as the funky rear lights. Inside there are two well-sized screens, with the customisable digital instrument panel particularly impressive for this price. It doubles up as the display for the night vision, which can spot people walking beside the road well ahead of time and alert you to their presence.

What’s under the bonnet? There were three engines available at launch – two diesel and one petrol. We spent most of our time in the more powerful 174bhp diesel. It’s fairly unrefined and noisy at lower speeds, undoing much of the premium ambience achieved by the interior design, but it settles down somewhat on the motorway. Official data shows decent economy figures, with a claimed 57.6mpg on the combined cycle. As with the petrol – which makes 221bhp and returns a claimed 57.9mpg – it gets the new eight-speed automatic transmission. Buyers of the lesser-powered 1.6-litre diesel will have to make do with an older six-speed. In mid-2019 a hybrid version will hit the market, using a petrol-electric drivetrain that uses know-how gleaned from DS’s successful Formula E all-electric racing team. 42 | CarDealerMag.co.uk

Suspension

Cameras in the windscreen spot potholes and bumps in the road, preparing the suspension to soak it all up.

What’s it like to drive? Out on the road, the DS 7 is a bit of a revelation – once you get it in the Goldilocks configuration, that is. The fascinating DS Active Scan Suspension analyses the road surface ahead to prepare for bumps, potholes and other imperfections, resulting in a silky smooth ride. However, it only works in the Comfort drive mode and is only really effective on 18- or 19-inch alloy wheels. Go for the large, blingy 20inch wheels or flick over to Sport mode and the ride becomes more unsettled.

How does it look? If there’s one thing DS has been good at over the past few years, it’s been making good-looking cars. To our eyes, the DS 7 Crossback continues that trend, bringing a touch of flair to the oftenstaid SUV market.

The LED headlights have three domes in each that twist and swivel on start-up, while the rear lights have a fantastically elaborate light pattern that would look more at home on a concept car. Admittedly, the overall silhouette is quite bland but the details are brilliantly executed.

What’s it like inside? If DS Automobiles is serious about rubbing shoulders with the likes of Audi and BMW, the interior is the battleground on which it has to really stack up. Traditionally, it’s been the brand’s weakest link, but it’s immediately obvious that special care has been taken to up its game. It’s by no means on a par with its German rivals, but the gap has certainly been narrowed. Two large digital screens dominate the interior, bringing modernity and plenty of customisation to the cabin – except on entry-level cars. There

THE KNOWLEDGE Inside

The interior is mightily impressive. There’s a lot of space, the seats are comfortable and there’s plenty of onboard tech.

Model as tested: DS 7 Crossback Prestige Price: £39,335 Engine: 2.0-litre diesel Power: 174bhp Torque: 400Nm Max speed: 134mph 0-60mph: 9.7 seconds MPG: 57.6 Emissions (g/km): 128 TARGET BUYERS: Buyers looking for a mid-sized premium SUV but who find German rivals’ prices too high. THE RIVALS: Volvo XC40, BMW X3, Skoda Kodiaq. KEY SELLING POINTS: 1. Styling brings French flair. 2. Interior design is funky and of decent quality. 3. Active Scan Suspension tech provides a silky smooth ride. DEAL CLINCHER: Good-value premium SUVs don’t come along very often – the fact this one drives well is just an added bonus.

‘It’s by no means on a par with its German rivals, but the gap has certainly been narrowed.’ are four trims with individual cabin design packages. Our Prestige-spec car had lovely quilted leather and a classy feel, while a brief drive in a Performance Line DS 7 revealed a sportier Alcantara-covered dashboard. There are some cheaper materials to be found, particularly around the window switches, but it doesn’t detract too much from the overall positive impression.

What’s the spec like? Standard specification is impressive, as even in the base Elegance trim you get 18-inch alloy wheels, cruise control and an eight-inch infotainment system. There are also loads of useful driver aids, including automatic windscreen wipers and headlights, automatic emergency braking and lane departure warning. The clever smooth-riding suspension system is only missing from the base specification too,

so you don’t need to splash the cash on the top model to get it. Higher-spec models also get the LED headlights, 12-inch twin digital displays and leather upholstery. Prices start at £28,050 and top out at £43,585. A particularly well-specced model will be upwards of £35,000, so you’re looking at a BMW X3 rival for X1 money.

What do the press think? Car magazine said the DS 7 Crossback was ideal for ‘customers who value comfort and technology – and hate following the crowd’, while Autocar called it a ‘refreshing’ take on a premium SUV but added that ‘its scope of originality is disappointingly limited’.

What do we think? Anyone who has spent time with any of DS’s previous models will likely intend to steer

clear of the DS 7 Crossback. However, if you’re considering the likes of the BMW X3, Audi Q3 or even a top-spec Skoda Kodiaq, this French effort is well worth a look. It’s not quite as polished as some of its rivals, but its inadequacies are few and they’re easily overlooked. The smooth ride and spacious cabin make it ideal for longer journeys, while the stylish exterior means it’ll turn heads at the school gates. Competitive pricing is just the cherry on the cake. CarDealerMag.co.uk | 43

Forecourt.

FIRST DRIVE

Volkswagen T-Roc

THE KNOWLEDGE

Ryan Hirons tries out the compact SUV that can either blend in or stand out, depending on your preference. But does it have what it takes to be a class leader? What is it? This is the German manufacturer’s attempt to get in on the compact craze, and despite having to play catch-up on its rivals, it’s aiming to lead the market.

rear window mean a poor rear view, not aided by narrow wing mirrors.

How does it look?

As well as establishing a new model for Volkswagen, the T-Roc brings a new naming convention that will extend to the smaller T-Cross SUV coming later down the line. Powertrain options have largely been plucked from other vehicles in the VW Group range, as have the S, SE and SEL trims, but new to the brand is the Design trim — which allows new customisation options.

The T-Roc has a mature and sleek design. It’s well proportioned and is certainly one of the more attractive offerings in the compact SUV sector, but it’s not a stand-out look. Should you want something to separate you from the crowd, the T-Roc has a wide range of customisation options to counter the otherwise understated styling. Eleven base colours are available, with Flash Red, Turmeric Yellow and Energetic Orange the most eye-catching, while the roof can be white, black, red or brown.

What’s under the bonnet?

What’s it like inside?

Our test car was fitted with the 1.5-litre petrol ‘EVO’ engine, coupled to a six-speed manual gearbox. The unit develops 148bhp and 250Nm of torque, capable of taking the car from 0-60mph in 8.1 seconds and up to a top speed of 127mph.

The interior is unmistakably Volkswagen. If you’ve sat in any of its recent vehicles, the switches, buttons and steering wheel will be instantly recognisable. This also means fit and finish are of a high quality, although some hard plastics are present on the dashboard. The

What’s new?

What’s it like to drive? For a compact SUV, it’s surprisingly engaging and fun to drive, thanks to well-weighted steering and supple suspension. This doesn’t compromise town driving ability either, thanks to a small turning radius and good front visibility. But large A pillars and a raked 44 | CarDealerMag.co.uk

cloth seats also feel a bit cheap. Where it differs from the rest of the range is the new Design trim, letting customers choose from four dashboard trim colours.

What’s the spec like? Our test T-Roc was an SEL trim model, meaning standard equipment includes Volkswagen’s Active Info Display technology, dual-zone climate control, adaptive cruise control, parking sensors, an eight-inch infotainment display with Bluetooth, Apple CarPlay and Android Auto, plus 18-inch alloy wheels. Extras included the £280 sport pack, which added front sports seats, steel pedals, red brake calipers and black roof lining, as well as PreCrash, which closes windows, tenses front seat belts and prepares brake systems if a dangerous situation is detected.

What do the press think? Autocar said: ‘The T-Roc looks good, it’s a great drive and, pricing of top models apart, it should fit snugly into anyone’s life.’ What Car? described it as ‘a different sort of VW – one that sacrifices a little bit of substance for greater style’.

What do we think? Price aside, the Volkswagen T-Roc has all the elements to

Model as tested: Volkswagen T-Roc SEL 1.5 TSI EVO 150 PS Price: £25,520 Engine: 1.5-litre petrol Power (bhp): 148 Torque (Nm): 250 Max speed (mph): 127 0-60mph: 8.1 seconds MPG: 52.3 Emissions (g/km): 121 TARGET BUYERS: Those who want a larger car without compromising sleek styling and strong driving dynamics. THE RIVALS: Renault Captur, Mini Countryman, Toyota C-HR. KEY SELLING POINTS: 1. Stylish appearance. 2. Wide range of customisation. 3. Surprisingly engaging to drive. DEAL CLINCHER: The Volkswagen T-Roc brings a premium and stylish option to the crossover market. truly be a class leader in the hypercompetitive compact SUV market. It’s one of – if not the – best to drive in the segment and is arguably one of the most handsome. Interior quality and rear visibility are weak points but don’t detract enough from the overall package to prevent it from being a strong contender. This isn’t the car for those who want equipment on a budget, but if you’re willing to part with the cash, it offers one of the best packages in its class.

FIRST DRIVE

BMW i3s

THE KNOWLEDGE

It’s an i3 – with a twist. As Jack Evans reports, BMW’s i3s has a bit of extra power, a snazzier appearance and adds a bit of excitement to the driving experience What is it? BMW has sold more than 8,000 of its i3 city cars since the model first went on sale in 2013, proving itself as a genuine all-electric alternative to a conventional hatchback. Now, the German manufacturer has chosen to introduce a little more sportiness to the i3 with this – the i3s. Offering more power than before as well as more dynamic looks, it’s there for people who want lower running costs, but still want an element of driving excitement from their battery-powered city car.

What’s new? This latest i3s gains more power than before, but we’ll look at that in a little more depth further on. The exterior now benefits from a variety of silver elements designed to lift the look of the car, while a lower sports suspension – dropped by 10mm over the standard i3 – gives it more presence. You’ll also find a 40mm wider track than the conventional car, as well as all-new 20-inch alloy wheels. A newly developed stability control system has also been added.

What’s under the bonnet? The BMW i3s uses a synchronous electric motor linked to a 33kWh battery. Here, it produces 181bhp and

270Nm of torque, which allow it to hit 60mph in just 6.6 seconds and reach a top speed of 99mph. Because of the nature of electric motors, all that torque is delivered instantly, so the i3s’s acceleration feels far brisker than the numbers lead you to believe. BMW claims that the i3s will return 174 miles on a single charge, while replenishing that battery to 80 per cent is said to take 11 hours from a conventional socket, or two-and-a-quarter hours via a higher-power wallbox. That said, if you do want better range, BMW is offering the i3s with a range-extending engine, too.

What’s it like to drive? The most noticeable aspect is the acceleration. It’s immediate and, thanks to more power than before, it’s more sustained, too. It doesn’t feel out of puff on the motorway where many other all-electric vehicles tend to falter. Light steering and a relatively

small turning circle makes the i3s a doddle to drive around town, and this is probably where most owners will be using them. Sport mode does give the i3s keener responses, though in truth it’s just as happy left in normal mode.

How does it look? The regular i3 was no shrinking violet in terms of styling, looking more futuristic than run-of-the-mill. You’ll now find LED headlights fitted as standard to the front of the car, while the rear has been brightened up with additional styling elements.

What’s it like inside? The i3s’s interior still feels like a very well-made place to be. The integration of carbon-fibre and natural wood elements still looks and feels special, while the fit and finish remain excellent.

What’s the spec like? The new i3s costs from £36,975 excluding the government’s electric car grant. There’s no denying that it’s a lot of money for a car of this size, but then it does pack in a lot of impressive technology.

What do the press think? i News said: ‘There’s no doubt straight away that you’re in a different car to the stock i3.

Model (as tested): BMW i3s Price: £36,975 (excluding government grant) Engine: Electric motor linked to 33kWh battery Power: 181bhp Torque: 270Nm Max speed: 99mph 0-60mph: 6.6 seconds MPG: 14.3 kWh/100 km Emissions (g/km): 0 TARGET BUYERS: Those who want to cut fuel costs but not driver involvement. THE RIVALS: Nissan Leaf, Volkswagen E-Golf, Audi A3 E-Tron. KEY SELLING POINTS: 1. Low running costs. 2. Solid build quality. 3. Surprising performance. DEAL CLINCHER: The BMW i3s adds a little more excitement to an already capable package – and it’s likely to prove popular. Performance is stronger, with that lovely linear drive you get from electric propulsion.’ AOL Cars said: ‘For those wanting a fun electric car that is involving to drive and cheap to run, it makes a fantastic option.’

What do we think? The i3s makes for a more compelling prospect than the regular car. It’s a little faster, a little more dynamic to look at and a little more involving to drive. Keener drivers who want an electric car will love it. CarDealerMag.co.uk | 45

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CarDealerMag.co.uk | 47

Feature.

What does 2018 hold for the industry? The great and the good from manufacturers, dealer groups and major suppliers have their say in our annual gaze into the automotive crystal ball

Paul Hendy Hendy Group Page 62

48 | CarDealerMag.co.uk

Victor Coutin GardX Page 66

Stephen Snow Snows Group Page 57

Max Stolton Google Page 63

Darren Sinclair Modix Page 68

Vicky Finn Pendragon Page 56

Daksh Gupta Marshall Motor Holdings Page 61

Mike Bell Imperial Cars of Swanwick Page 60

PICTURES: MAL HAY

Tony Whitehorn Hyundai Motor UK Page 53

Robert Forrester Vertu Motors

Jeremy Hicks Jaguar Land Rover Page 50

Page 55

Alex Smith Nissan Motor GB Page 51

David Peel Peugeot UK Page 52

Vincent Tourette Groupe Renault Page 54

John Colinswood WMS Group Page 64

CarDealerMag.co.uk | 49

Feature.

Jeremy

Hicks JAGUAR LAND ROVER: Hoping for Brexit clarity and an end to diesel demonisation. What opportunities will 2018 present? The opportunities for Jaguar Land Rover are undoubted. We benefit from the freshest range of cars we’ve ever had, with more products to offer UK buyers than ever before. We have just launched the new Range Rover and Range Sport PHEVs, the Jaguar E-Pace has just gone on sale and we’ll see our first battery electric vehicle, the Jaguar I-Pace, introduced during 2018. What do you regard as the biggest threat to the motor industry in 2018? The biggest threat to our industry in 2018 is the continued demonisation of modern diesel engines. Too many incorrect assumptions are being made by the media and campaigners, when the real truth is that the latest diesel vehicles are some of the most efficient on the road and have comparable air quality impact to equivalent petrol engine cars. I’m really perplexed by government policy that is focused on penalising the most modern and cleanest diesels on the road when they contribute the very least to air quality issues. It is a counter-intuitive measure that will create further customer confusion and stall the incredible technological progress industry makes each year in reducing emissions. Clean diesel engines are a part of the solution to global warming and air quality, not part of the problem. Are there any reasons to be cheerful? Yes, lots. At Jaguar Land Rover we continue to have good momentum heading into the new year – in the 11 months to December this year we have sold 112,000 cars in the UK, which is pretty impressive when you consider that we sold just 57,000 in the whole of 2011. More than that, we have been able to maintain year-on-year growth in a market that’s down by more than five per cent. Traditionally in a difficult market environment, residual values slide considerably but we have seen and continue to see strong residual values for our vehicles and a strong market for preowned Jaguar Land Rover products. What are you most excited about right now? I’m incredibly excited about the investment our retailer partners are making in transforming

Mini CV

their sites into modern, luxurious and design-led spaces that better reflect our current model range. 2017 has been tough – will this continue? The difficulties in 2017 have been driven largely by low consumer confidence on the back of Brexit uncertainties and the demonisation of diesel. However, we must not forget that many of the economic fundamentals in the UK remain strong. If we can get better certainty on Brexit and a more fair representation of diesel in the marketplace then I’ll be feeling more optimistic.

Jeremy Hicks, Jaguar Land Rover UK managing director Lives: Milton Keynes. Drives: Range Rover. Family: Wife, three grown-up children and two dogs. Education: Schooled in York, business studies degree at the University of Central Lancashire. Career: 1984-1998: Vauxhall Motors. 1998-1999: Quadrangle Consulting. 1999-2011: Volkswagen Group. 2011-present: Jaguar Land Rover. Brexit – hard or soft option preferred? We want a Brexit that ensures free, frictionless, tariff-free movement of trade, fair mobility of labour and equivalency of legislation. A weekend away – countryside calm or a busy city break? Countryside calm – a great antidote to the hectic nature of the job. You’ve won the lottery – what’s your first purchase? Homes for my kids.

Do you think the motor industry needs to change? If so, in what way? Often the motoring industry is seen as oldfashioned and traditional but I don’t buy that at all. We are working in an industry that is going through unprecedented levels of change, not only in the vehicles we produce but also in the way we sell them. I think history will show that we are a truly vibrant, pioneering industry.

Is there any habit that dealers should leave behind in their working lives? That’s an interesting question as it suggests that we are talking here about bad habits rather than good habits. As manufacturers, we are really good at doing what we do and as retailers they are really good at doing what they do. I think both parties know the things they should be doing more of and those they should be doing less of.

What should dealers be focusing on to ensure growth and a sustained future in 2018? Customers, customers, customers and ensuring that they have a balanced approach to their business to embrace not only new car sales but used cars and aftersales.

If you had a final word of advice for our readers, what would it be? Never forget that we work in one of the most exciting and vibrant industries there is. We provide all of our customers with personal mobility and all the freedoms that entails.

‘We are working in an industry that is going through unprecedented levels of change.’ 50 | CarDealerMag.co.uk

Alex

Smith

NISSAN: Manufacturer MD says everything must be centred on exceeding customers’ expectations. What opportunities will 2018 present? The launch of the new Leaf in 2018 is a great opportunity for Nissan to maintain its leadership of the electric vehicle market. We have already seen huge growth in this sector in 2017, and with more models coming to market, we will only see this number increasing further. We are in a strong position – with a seven-year head-start on many of our competitors – and with a fantastic new product and a market that’s moving rapidly towards electric vehicles, it’s a real opportunity for the Nissan dealer network next year. What do you regard as the biggest threat to the motor industry in 2018? It’s no secret that volumes are down across the industry and consumer confidence has dipped recently, so it’s fair to say that market conditions will continue to be a challenge as we move into 2018. That makes it more important than ever to focus on delivering excellent customer service and ensure that we take the time to win every sales opportunity. Are there any reasons to be cheerful? We’ve launched three fantastic new models during 2017: Qashqai, X-Trail and the all-new Micra – all of which are hugely important cars for Nissan in the UK. Add to this our first sight of the game-changing new Nissan Leaf – which will launch early in the new year – and it all adds up to exciting times for Nissan in the UK. What are you most excited about right now? The launch of the new Leaf is what I’m really excited about at the moment. With amazing new technologies like e-pedal and ProPilot, plus exciting design and a step change in range from previous generations, the timing of this car’s arrival is perfect. Car buyers are turning to electric vehicles in ever greater numbers so the Leaf is the right car at exactly the right time. 2017 has been tough – will this continue? There are challenges in the market. However, with challenge comes opportunity – the market for crossovers and electric vehicles continues to grow

Mini CV rapidly and these are two sectors that Nissan excels in. We are confident of success in 2018, but know also that we will have to work hard and really focus on the details of the customer experience to be sure of success. Do you think the motor industry needs to change? If so, in what way? The motor industry is changing rapidly in a number of ways, not least the move towards lower-emission vehicles. We’ve already seen a shift into different powertrains and this is likely to continue as a result of recent government announcements and the introduction of clean air zones. Nissan is perfectly positioned to capitalise on this trend currently selling around one in every two electric cars and four in five electric vans. Timing could not be better for the introduction of the all-new Leaf due early in the new year. With 50 per cent more range, a host of really useful high-tech features and a great new design, we’re really looking forward to this new car, and have high hopes for sales in the UK. What should dealers be focusing on to ensure growth and a sustained future in 2018? We have to be smart and efficient in the way we operate. If we focus on our strengths – a fantastic range of models, market-leading EV tech, a strong and engaged dealer network, a large database of loyal and happy customers and great retail and fleet offers – there’s a lot to be positive about. Is there any habit that dealers should leave behind in their working lives?

Alex Smith, managing director, Nissan Motor GB Lives: Oxford. Drives: Qashqai, with a Leaf on order. Family: Partner Johanna and three children – Charlotte, 16, Caitlin, 14, Oliver, 12. Education: BA in geography, Leeds University. Career: I joined Nissan in September last year, following nine years at Volkswagen UK. Prior to that, I worked at Kia Motors, GM Daewoo and Ford of Britain. A weekend away – countryside calm or a busy city break? City calm – Stockholm is brilliant at this. You’ve won the lottery – what’s your first purchase? A Nando’s – it’s how the kids would want to celebrate.

The biggest trap we all fall into is doing things the same as we always have done because it has worked in the past. With volatile market conditions, it is more important than ever to embrace new thinking and try new ways of working. A focus on customer satisfaction is paramount to ensure a growing customer base and a sustainable business for the future. If you had a final word of advice for our readers, what would it be? Customer quality is king – everything we do must be centred on meeting and exceeding our customers’ expectations. By doing so, we ensure a long-term relationship with them and help build sustainable growth for the future.

‘It is more important than ever to embrace new thinking and try new ways of working.’ CarDealerMag.co.uk | 51

Feature.

David

Peel PEUGEOT UK: Investment in people and attention to digital detail should be the main focus. What opportunities will 2018 present? This year will, without doubt, bring its challenges and the market is likely to contract. That said, from a Peugeot perspective, 2018 will bring a number of opportunities. I’ll list three key ones. Firstly, we enter the year with every dealer now at our latest form of corporate identity, positioning Peugeot as a true high-end generalist. Secondly, we will have a full year with our fabulous 3008 and 5008 SUVs, and thirdly, we will start to see the benefits of our improved residual values that have been central to our growth strategy since I started in March 2016. What do you regard as the biggest threat to the motor industry in 2018? UK consumer confidence in the context of Brexit negotiations will be the biggest threat, and protecting our RVs in a declining market will need tight management in the following areas: • Getting the balance right between volumes and profit • Diesel evolution vs petrol • The ability to recruit the right people with the right skill sets and attitudes in our dealer network (sales execs, service advisers, technicians) in a changing environment, and to retain them Are there any reasons to be cheerful? Yes, absolutely. My vision is always to focus on what you can affect and not dwell on what you cannot. I and the Peugeot network will enter the year with a positive mind-set and work on the opportunities we have as explained above. What are you most excited about right now? 2018 will be a landmark year for our brand, as we now have an engaged network working in great refurbished premises with fabulous product. What’s there not to be excited about? 2017 has been tough – do you see this continuing into 2018? I am afraid to say I think it will be tougher this year. As I have already said, there is a lot of uncertainty surrounding the economy, but as much of the industry will be focusing on reasons

Mini CV

to be negative, at Peugeot we have written a strong sales plan focusing on improving our retail sales and continuing our consistent mediumterm strategy of: • Protecting our RVs in a declining market • Building our brand through great marketing and the strongest product line-up we have had in years • Introducing four great new additions to our range • Having a full year of 3008 and 5008 SUVs • Expanding our online sales platform • Working closely with our revised network in our Stronger Together approach Do you think the motor industry needs to change? If so, in what way? The motor industry is changing whether we like it or not. Every day, digital is becoming more and more impactful. The industry needs to change to ensure that the customer’s online and physical journey is completely aligned and serviced by quality well-trained people with great product knowledge. What should dealers be focusing on to ensure growth and a sustained future in 2018? People and process. Staff engagement, loyalty

David Peel, managing director, Peugeot UK Lives: Kenilworth, Warwickshire. Drives: Our fabulous new Peugeot 5008 SUV. Family: Married with four children. Education: 3D Design – University of Wales. Career: CEO, Robins and Day; fleet director, Peugeot UK; regional director, Peugeot UK. Brexit – hard or soft option preferred? Soft, as it will be more predictable. A weekend away – countryside calm or a busy city break? I enjoy both, but there’s nothing better than the fresh air and freedom of the countryside or ski resort! You’ve won the lottery – what’s your first purchase? Rare classic car. and low turnover is crucial to ensure growth. Investment in people and attention to digital detail should be the main focus. Is there any habit that dealers should leave behind in their working lives? Almost all of their past habits, as the industry is changing very quickly and today digital is the shop window and must be managed that way. That said, customer service will always remain top priority. If you had a final word of advice for our readers, what would it be? Lead with a positive mindset, actively engage your team and remember that ‘retail is detail’ – online and physical.

‘My vision is always to focus on what you can affect and not dwell on what you cannot.’ 52 | CarDealerMag.co.uk

Tony

Whitehorn

HYUNDAI: Yes, we’re facing huge challenges, but we’re an industry that’s agile and able to adapt.

Mini CV

What opportunities will 2018 present? There is a fast-growing focus on alternative fuels which will positively impact on our country’s emission levels. Most manufacturers are investing continuously in new low-emission technologies and are making rapid progress – providing consumers with even greater choice. At Hyundai, we have one of the broadest product line-ups in the industry with the Ioniq Hybrid, Plug-In and EVs all available for customers to buy now. The Ioniq will be joined this year by a fully electric Kona. We were also the first manufacturer to produce and sell a hydrogen fuel cell vehicle and an all new fuel cell model will be coming soon. There are also many more products to come from us this year. What do you regard as the biggest threat to the motor industry in 2018? Brexit and the resulting uncertainty, the exchange rate, interest rates, and the diesel hype. Are there any reasons to be cheerful? Despite the difficult conditions, Hyundai UK should finish 2017 with record sales of between 93-94,000 units (the actual figure turned out to be 93,403). We launch i30 Fastback and N in January and we have a strong product momentum which will see a number of all-new and enhanced models joining the line up this year. What are you most excited about right now? There is no doubt that the industry is facing huge challenges right now and I can’t see that

changing anytime soon but I am very proud to work in an industry that is agile and is able to adapt, finding new ways to deliver products and services that our customers want. Also, through greater digitalisation, we are on the cusp of totally transforming the retail experience for the better. 2017 has been tough – will this continue? Yes, it will. The car market will be down this year and this is likely to continue, driven by factors conspiring against the industry. Interest rate hikes will affect consumer confidence further and the vilification of diesel including new taxation will further reduce sales and will do nothing to get the oldest, most polluting cars off the roads. Foreign exchange rates also mean that the market is no longer treasure island for consumers – all of us are being forced to be less aggressive, therefore it is not such an attractive marketplace for consumers. Do you think the motor industry needs to change? If so, in what way? It needs to continue to embrace more the opportunities of digital retailing by bringing the dealer networks into that environment. Real change will come by including traditional dealers, not excluding them. What should dealers be focusing on to ensure growth and a sustained future in 2018? I strongly believe that they need to focus much more on retention and therefore their aftersales business. It is more expensive to bring on board a

Tony Whitehorn, president and CEO, Hyundai Motor UK Ltd Lives: Wokingham, Berks. Drives: Hyundai i30 N. Family: Wife Sally and three amazing children – Luke, James and Abigail. Education: Canford School, BSc Hons in Economics, Cardiff University. Career: Rover 1982-1984, Renault sales department 1984-1989, 1989 Toyota UK national training manager, various sales and marketing roles, 1999 sales director, 2002 operations director, 2005 Hyundai Motor UK managing director, 2011 Hyundai Motor UK president and CEO. Brexit – hard or soft option preferred? Soft. A weekend away – countryside calm or a busy city break? Busy city break. You’ve won the lottery – what’s your first purchase? Honestly, I would give most of it away – after I’d bought a copy of Car Dealer, of course! conquest customer than it is to keep a loyal one. Is there any habit that dealers should leave behind in their working lives? Too much focus on ‘if only we had…’ rather than focusing on what we do have and just getting on with it. If you had a final word of advice for our readers, what would it be? Keep buying Car Dealer magazine!

‘We are on the cusp of totally transforming the retail experience for the better.’ CarDealerMag.co.uk | 53

Feature.

Vincent

Tourette

GROUPE RENAULT: Good and agile dealerships will succeed even in challenging times.

Mini CV What opportunities will 2018 present? Great products will always be in demand. We’re fortunate to have a Renault and Dacia product line-up recognised with independent awards for their stunning design, quality and value for money. What do you regard as the biggest threat to the motor industry in 2018? Without doubt, uncertainty in the market through Brexit negotiations, exchange rate fluctuations and misunderstandings in the marketplace regarding emissions. Are there any reasons to be cheerful? Always! Firstly, Mitsubishi joined the RenaultNissan Alliance in 2017 increasing our global sales to 10 million per year. In Europe, Groupe Renault increased its market share to over 10 per cent. In the UK, our network has a wide range of fresh new products, including three crossovers: Captur, Kadjar and Koleos. Dacia is enjoying the strongest growth in Europe. Renault has the best-selling all-electric car and van range in Europe and there’s never been more customer interest and demand for these vehicles than now. And, last but not least, the launch of our very exciting and highly-rated Alpine A110 sports car later this year. What are you most excited about right now? Continuing to work closely with our dealer association and network partners to satisfy UK customers in a rapidly evolving environment.

2017 has been tough – will this continue into 2018, do you think? It’s not going to get any easier, that’s for sure. But demand is still there for the best products and services, we mustn’t lose sight of that. Do you think the motor industry needs to change? If so, in what way? Cars and vans are going to be electric, connected to their environment and autonomous. Customers are demanding more and better services and are moving towards a usage model. How we react to that is going to be key. The development of these new vehicles and services is at the heart of Groupe Renault strategy and investments. What should dealers be focusing on to ensure growth and a sustained future in 2018? Looking after customers by offering the best standards of service, not just in the motor industry, but in comparison to other consumer goods. And taking the opportunity of challenging times ahead to become stronger: the good and agile dealerships will always succeed. Is there any habit that dealers should leave behind in their working lives? Not treating each and every customer contact as a special moment to impress. If you had a final word of advice for our readers, what would it be? Be positive. Dealers are best placed to provide

Vincent Tourette, managing director of Groupe Renault, responsible for Renault and Dacia in the UK, Ireland, Cyprus and Malta Lives: London. Drives: Waiting for my new Renault Mégane R.S. Family: Wife and two teenage children. Education: Business school in France and London Business School. Career: I have worked for the RenaultNissan Alliance for 23 years. Most recently, I was with Nissan, based in Tokyo, as vicepresident, sales and marketing, with global responsibility for their LCV range (pick-ups, vans and light trucks). Previously, I held a variety of commercial roles with Groupe Renault including CEO for the five countries in the Nordic region, marketing director for the Netherlands and, previously in the UK, as general manager for a Renault Retail Group branch and marketing planning manager at Renault UK. Brexit – hard or soft option preferred? Neither! But of those two options, soft with a transitional arrangement. A weekend away – countryside calm or a busy city break? Countryside calm. You’ve won the lottery – what’s your first purchase? The new Alpine A110. an excellent, local service. Keep looking at customer trends in non-automotive industries to see what customers want and how successful businesses supply that demand.

‘Demand is still there for the best products and services, we mustn’t lose sight of that.’ 54 | CarDealerMag.co.uk

Robert

Forrester

VERTU: Personal growth accelerates in more challenging times since focus increases.

Mini CV What opportunities will 2018 present? As an ambitious business with no debt or usedcar stocking loans to speak of, we see significant opportunities in being able to expand our business through the acquisition of dealerships. What do you regard as the biggest threat to the motor industry in 2018? Lack of self-confidence strikes me as the major threat since I believe there will be plenty of doom and gloom around. Keeping everyone in our business with a positive mindset to take advantage of the opportunities rather than worry about the challenges will be management’s key focus. Are there any reasons to be cheerful? There are always reasons to be cheerful. We have a team of people within Vertu who respect each other and we have fun in what we do always. We have to treat challenges as a reason for us to improve as individuals and as a business. I have always found personal growth accelerates in more challenging times since focus increases. What are you most excited about right now? The group is investing time and money in creating a learning culture on the back of an e-learning platform to develop leaders and improve skills within the business. We are getting better on a day-to-day basis and having fun doing it.

2017 has been tough – will this continue? The UK is not in recession and is not forecast to enter one. It has been relatively tough but we are still benefiting from record new-car markets. Almost every year I have been in the UK motor retail sector, I have read articles in January saying we were in for a tough year. Do you think the motor industry needs to change? If so, in what way? We will have to work together with manufacturers to considerably re-reduce the cost bases of our operations. We should be very focused on activities which add value to customers rather than those which do not. We will have to change our charging structures to reflect the cost of providing services. For example, why are valeting services in service departments effectively free of charge to customers? Why are we charging the same amount to a service customer who waits in the showroom compared to one who has collection and delivery or a courtesy car? What should dealers be focusing on to ensure growth and a sustained future in 2018? We need to do the same this year as we have done in the past. To quote Dave Anderson, ‘We do not need to do anything extraordinary, we just need to do the basics extraordinarily well.’ Is there any habit that dealers should leave

Robert Forrester, CEO, Vertu Motors plc Lives: Newcastle upon Tyne. Drives: Not much. Family: Three children and a very understanding wife. Education: Oxford University. Career: I trained as a chartered accountant with Arthur Andersen and then went into the property business. I joined Reg Vardy plc in 2001, an event that changed my life. Brexit – hard or soft option preferred? Hard and quick. A weekend away – countryside calm or a busy city break? Neither, I like a weekend by the sea. You’ve won the lottery – what’s your first purchase? Vertu Motors shares.

behind in their working lives? Drifting: That is coming to work without a definitive plan for the day and drifting through the day rather than being fully productive on high-impact activities. If you had a final word of advice for our readers, what would it be? Have a personal development plan to improve your personal effectiveness.

‘We have a team of people who respect each other and we have fun in what we do.’ CarDealerMag.co.uk | 55

Feature.

Vicky

Finn

PENDRAGON: Our decisions and actions should be driven by our customers’ needs.

Mini CV What opportunities will 2018 present? 2018 will be a year to demonstrate resilience. Individuals and companies that are resilient will find that 2018 will provide opportunities to change the ways we work and to evolve our businesses. What do you regard as the biggest threat to the motor industry in 2018? Complacency. The biggest threat to the industry is not the change that is coming about, but accepting the change and how quickly we can adapt. From new policies and technologies, to our customers’ changing expectations and behaviours, it’s vital that the industry keeps up. Those not evolving will see these changes as a threat. Are there any reasons to be cheerful? Of course, it’s not all doom and gloom! I find with the new year, people are refreshed, full of ideas and ready to take on new challenges. These are the ‘good old days’ and the automotive sector is a really interesting industry to be a part of. What are you most excited about right now? The opportunities to grow the business and new ways to engage customers. We have a clear direction at Pendragon and I am excited about our newest brand, Car Store, and the expansion into new UK markets that it will bring this coming year. We will also continue our

digitisation programme with some truly exciting projects coming to fruition in 2018. 2017 has been tough – will this continue? I’ve been in the industry for 12 years and tough is the norm. However, as we’re keen for our retailers to see, challenges should be seen as opportunities. Change is one of the few constants in this industry, it doesn’t have to be a negative. Plus – it is so rewarding when you get the successes you aim for. Do you think the motor industry needs to change? If so, in what way? The industry is changing. A customer service focus remains essential, and finding the best ways to fulfil consumer needs in our fast-paced society and for our diverse customer base is driving changes. More than ever, our decisions and actions should be driven by our customers’ needs and not our businesses’ needs. What should dealers be focusing on to ensure growth and a sustained future in 2018? Customers. How to find the most effective and cost-efficient ways to deliver a fantastic experience for customers should be a key focus. Inspired and engaged teams delivering consistently great customer experience drive sustained performance. Is there any habit that dealers should leave behind in their working lives?

Vicky Finn, group marketing and communications director at Pendragon PLC Lives: Derby. Drives: Mercedes-Benz GLC. Family: Married. Education: Loughborough University. Career 2006-2007: Pendragon PLC – communications, PR and events assistant. 2007-2009: Pendragon PLC – group communications, PR and events leader. 2009-2014: Pendragon PLC – group marketing leader for Evans Halshaw. 2014-2017: Pendragon PLC – head of marketing communications. 2017–now: Pendragon PLC – group marketing and communications director. Brexit – hard or soft option preferred? Soft. A weekend away – countryside calm or a busy city break? Busy city break. You’ve won the lottery – what’s your first purchase? A classic car.

When under pressure I find dealers have a habit of turning to previously tried and tested methods, reverting back to ‘what used to work’, when consumer behaviour has changed significantly. If you had a final word of advice for our readers, what would it be? When you are sat on the horse, you know the direction you are heading. You can either lean in or lean back. My advice – lean in.

‘Change is one of the few constants in this industry, it doesn’t have to be a negative.’ 56 | CarDealerMag.co.uk

Stephen

Snow

SNOWS GROUP: Our structure, investments and business priorities have all been reviewed. What opportunities will 2018 present? Businesses with a healthy balance sheet, a strong customer proposition and who are working with great brand partners will see opportunities arise for their businesses to develop and grow. What do you regard as the biggest threat to the motor industry in 2018? Uncertainty, as always, remains the biggest threat to consumer confidence. Clearly, we would all welcome some clarity in the Brexit negotiations and from the unusual political uncertainty in Germany and the USA. Are there any reasons to be cheerful? Plenty, we represent some of the finest brand partners who are releasing some great new cars and we continue to invest in our people, processes and premises. We are confident that as we go into 2018, we will continue to secure an unfair share of the market. What are you most excited about right now? We are just seeing the latest entrants into the Snows Academy. It’s always exciting to see bright new young people join the business with their aspirations and careers in front of them – it acts as a real boost to us all. 2017 has been tough – do you see this continuing into 2018? It’s likely, but by nature we are resilient and a new year always brings fresh enthusiasm. We have also taken the opportunity to review our structure, investments and business priorities.

Mini CV This allows us to go into the new year in better shape and with fresh vigour. Do you think the motor industry needs to change? If so, in what way? Technology has led to massive changes in the way people buy. More than ever, customers are empowered to make informed decisions. No longer passive observers, they’re active participants, educating themselves about products and services before ever engaging with a brand. Companies, in any sector, that want to compete in this new landscape, need to transform the way they do business. What should dealers be focusing on to ensure growth and a sustained future in 2018? Providing outstanding customer service each and every time we touch a customer during their purchase. As an industry, we are often complacent and sometimes forget what it means for a customer to buy a car. A customer who feels comfortable and is being communicated to in a timely and consistent manner is much more likely to engage. Is there any habit that dealers should leave behind in their working lives? The digital world and the opportunities it offers means the work of the sales department has changed beyond all recognition. It is not simply a case of providing a weekly list to the local newspaper and having a tidy forecourt. The modern-day sales executive needs to be process-driven, technically minded, able to work

Stephen Snow, group chairman, Snows Group Lives: Southampton. Drives: BMW. Family: Lovely wife, three daughters and a recent grandson. Education: Just a couple of GCSEs at Mountbatten School, Romsey. Career: Left school to join the family business in 1981, and have been there ever since – my late father retired in 2007 when I replaced him as group chairman – in all, I have had 36 years with Snows Group and have loved every minute. Brexit – hard or soft option preferred? Medium. A weekend away – countryside calm or a busy city break? Both – would like to alternate them. You’ve won the lottery – what’s your first purchase? I would have absolutely no doubt I would be persuaded to purchase three new houses for my three daughters! with tools such as social, video, live chat and email, be legally compliant and have very strong interpersonal skills. If you had a final word of advice for our readers, what would it be? Remain optimistic. Dealers, sadly, will fall by the wayside but history suggests it will be those that have their businesses in shape, and provide outstanding customer service, that will grow and thrive.

‘As an industry we sometimes forget what it means for a customer to buy a car.’ CarDealerMag.co.uk | 57

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Feature.

Mike

Bell IMPERIAL CARS: Continuing decline in new car sales means increased opportunity for us.

Mini CV

What opportunities will 2018 present? As a used car retailer, we see an opportunity to increase sales as a direct result of the continuing decline in new car sales. With further expansion of the group into new territories during 2018, this also presents the opportunity to conquest what could be considered as traditionally new car customers in geographical locations we have not had the opportunity to attack prior to this expansion. What do you regard as the biggest threat to the motor industry in 2018? We need to ensure that we are monitoring ‘dieselgate’ as it develops through the year and adjust our stock mix accordingly. The economy is obviously a concern as this needs to remain stable or improve to ensure continued growth. The threat of further interest rate rises, albeit minimal, and ongoing uncertainty surrounding Brexit have the ability to undermine this stability. Are there any reasons to be cheerful as the new year gets under way? For us, the market has been particularly buoyant over the past year, delivering results which exceeded the 2017 Budget and were significantly up year-on-year. Other than the possible ‘banana skins’ above, we see no reason for this to not pull through into this year, and we have an extremely positive outlook for 2018, hence the continued expansion of the group.

What are you most excited about right now? Continuing the good work we did in 2017 and benefiting from the growth in the used car market experienced in 2017. 2017 has been tough – do you see this continuing? As indicated, 2017 was a great year for us and we see this continuing with no real slowdown in the used car market. We need to be cautious with our budget and accept there may be economic developments that mean ongoing success isn’t completely in our control. We do believe, however, that success is in our own hands, and as long as we stay abreast of the developing market and the economy and, most importantly, remain customercentric, the business will grow year-on-year. Do you think the motor industry needs to change? If so, in what way? We as an industry need to understand that the consumer is often now far more educated than we are. The resources they have at their fingertips in relation to researching their ideal car online mean that they have virtually made the decision to buy our car before arriving at our premises. The motor industry needs to be customer-centric and move towards a model that enables the customer to buy the car rather than kid ourselves and think we are selling the customer the car. All we need to do is facilitate the transaction and reinforce the decision that the customer has already made.

Mike Bell, managing director at Imperial Cars of Swanwick Lives: Southampton. Drives: Ferrari 488 Spider. Family: Married with three sons. Education: St Vincent Secondary School, Gosport, Hampshire. Career: Motor industry from 1988 to present. Positions held are everything from valeter to managing director. Brexit – hard or soft option preferred? Hard, and get back to ‘better than normal’ fast. A weekend away – countryside calm or a busy city break? Scottish Highlands are perfect. You’ve won the lottery – what’s your first purchase? Bugatti Chiron and large donation to Cancer Research.

What should dealers be focusing on to ensure growth and a sustained future in 2018? Customer experience, product quality, transparency, alignment of the online/offline buying experience. Make it as simple as possible for the consumer to buy the car that in most cases they’ve already decided upon. Is there any habit that dealers should leave behind in their working lives? Thinking that we in the industry know better than the customer – thinking we’re smarter than the customer. If you had a final word of advice for our readers what would it be? Transparency.

‘We need to understand that the consumer is often now far more educated than we are.’ 60 | CarDealerMag.co.uk

Daksh

Gupta MARSHALL: The group is well-placed for consolidation opportunities that might arise. What opportunities will 2018 present? It could be a challenging year for the industry for a number of well-documented reasons. However, we should not forget that the industry will still be enjoying one of the highest levels of market on record and that the market is just returning to a normalised level. In these circumstances, my advice is to focus on those opportunities that exist in your business to replace any potential declining market volumes. Those who do not do this will feel the consequences in their business and, as a result, I foresee many potential consolidation opportunities for Marshall moving forward. As a group, we are very well placed to take advantage of those given the firepower the group has following the disposal of its leasing business. We are totally ungeared, have cash in the balance sheet, have well over £100 million of unencumbered freehold assets and a £120 million committed and secured revolving credit facility. What do you regard as the biggest threat to the motor industry in 2018? There are a number of potential headwinds such as increased legislation, cost pressures, and uncertainty as a result of weakening consumer confidence as a result of Brexit. Are there any reasons to be cheerful? It is understandable to have concerns when the market is more challenging, however, I prefer to focus on the significant opportunities that we have in the business, such as PCP renewals. At Marshall, we have over 60,000 customers in PCPs, a significant percentage of whom will be looking to change their vehicles in 2018. In my experience, if the new car market declines, the used car market increases which will also present opportunities for the business. In addition, the growth in the vehicle parc in recent years will mean we have opportunities in our aftersales business – so plenty of reasons to be cheerful. What are you most excited about right now? Future technological advancements across the industry with things such as connected car. Connected car will bring franchise retailers closer to the customer as it will enable our brand

Mini CV

partners to understand when their car requires servicing or repair, which should ultimately mean an increased retention rate of customers for our business. This is good news for the future as our brand partners will want this work carried out at their franchised retail networks where we have highly skilled technicians, provide genuine OEM parts and fantastic environments for customers. 2017 has been tough – will this continue? When you look at the data, there is no doubt the market has become more challenging and with all of the current political and economic uncertainty, this could continue into this year. However, as I said, we have lots of opportunities in our business that we can maximise to improve our performance. Do you think the motor industry needs to change? If so, in what way? The motor industry IS changing! We have seen significant change in recent years. The industry has been established for over 100 years and has seen many challenges; I believe it will continue to evolve and we are likely to see the biggest change the industry has ever experienced as a result of some of the strategic changes to the business model, such as electrification. I feel confident the franchise sector is well-placed to work collaboratively with our brand partners for the good of all stakeholders, customers, colleagues and shareholders.

Daksh Gupta, chief executive officer, Marshall Motor Holdings plc Lives: Harpenden. Drives: Yes! Always one of our brand partners’ cars. Family: Married to Kenzie, three children, Ajay (18), Myles (5) and Elicia (2). Education: Computer science software engineering, Oxford Brookes University. Career: 25 years’ experience in the automotive retail sector and joined the company in 2008 as its chief executive officer. Previously group managing director for Ridgeway Group and the chief operating officer of Accident Exchange Group PLC. Franchise director for Inchcape for seven years, responsible for the Volkswagen, Audi and Mercedes-Benz brands. Brexit – hard or soft option preferred? Soft. A weekend away – countryside calm or a busy city break? What’s a weekend away? You’ve won the lottery – what’s your first purchase? Aston Martin DB11 Volante. What should dealers be focusing on to ensure growth and a sustained future in 2018? Customers! Deliver exceptional service to every customer who connects with your business and make sure your enquiry management systems are robust. Any drop in the market can be more than compensated for by improving conversion rates. Is there any habit that dealers should leave behind in their working lives? Negative mindsets! When the market becomes challenging it is easy to say ‘things are tough’. Personally, I prefer to focus on the positives! If you had a final word of advice for our readers, what would it be? Please turn the page to some of the other automotive influencers who are far more qualified to give advice than I am!

‘We have lots of opportunities that we can maximise to improve our performance.’ CarDealerMag.co.uk | 61

Feature.

Paul

Hendy HENDY GROUP: Change is now a constant and you just have to embrace it, adapt and get on. What opportunities do you think 2018 will present? The forecast for the new car and CV market is still strong, and the used car market will look similar to this year. Due to the size of the market over the last three years, we also have a significant vehicle parc that will help our aftermarket opportunities, also a number of these will be on a PCP so will be eligible for renewal. What do you regard as the biggest threat to the motor industry in 2018? Negative press affecting consumer confidence! There are still significant opportunities available to us and the world did not come to an end post-Brexit! Are there any reasons to be cheerful at the start of this new year? Plenty, this is still a great industry. It’s tough and challenging but has it ever been any different over the past 20 years?! What are you most excited about right now? The challenge – you have to be excited and enthused by how you can deal with whatever comes your way, otherwise you will be consumed by any difficulties. 2017 has been tough – do you see this continuing? Tough is the new normal. As I have said, there are still significant opportunities there for everyone. Work harder, work smarter.

Mini CV

understand this and engage accordingly. Do you think the motor industry needs to change; if so in what way? The industry is constantly changing now, enjoy the ride. Change is now a constant and you just have to embrace it, adapt and get on. What should dealers be focusing on to ensure growth and a sustained future in 2018? Customer care – the experience, not just focus on price. Whether that be in the sales or service arena, it has to be a differentiator, customers are more discerning, they have more choice and can research online in their own time. We have to

Is there any habit that dealers should leave behind in their working lives? Being negative. If you had a final word of advice for our readers, what would it be? Enjoy what you are doing – embrace the challenge. This is a fantastic business with lots of opportunities and experiences, and can provide a great living. Never forget the joy of the customers and their families when picking up their new car, there is nothing quite like it !

Paul Hendy, chief executive of the Hendy Group Lives: Wimborne, Dorset. Drives: Range Rover SVR. Family: Married with three children. Education: Yes, a little bit. Career: 25 years in the motor trade. Brexit – hard or soft option preferred? Hard. A weekend away – countryside calm or a busy city break? Either would be nice! You’ve won the lottery – what’s your first purchase? Another ticket.

‘Never forget the joy of the customers and their families when picking up their new car.’ 62 | CarDealerMag.co.uk

Max

Stolton

GOOGLE: Technology can help us create a truly customer-focused communication strategy.

Mini CV

What opportunities will 2018 present? The biggest opportunity for dealers will be to understand and maximise the role that digital, in particular mobile, plays in driving customers into their dealerships. There are now 60 million smartphones in the UK and research shows that they are used in 71 per cent of online car purchase research. This generates a huge opportunity for dealerships to engage with their customers through the key stages of the purchase journey, before they’ve even set foot on the forecourt. Once within a dealership, mobile experiences can help enhance the buying process. What do you regard as the biggest threat to the motor industry in 2018? Unsurprisingly, the economic uncertainty caused by Brexit is hot on everyone’s lips. With a rise in inflation and the slowdown of wage growth, people are holding onto their hard-earned pounds. When you add into the mix consumer confidence in diesel cars and the growing uncertainty over future regulation, you can see why some may feel under threat. Are there any reasons to be cheerful? Of course, consumers’ behaviour is changing and the market is being disrupted, but at the same time the exponential increase in technological progress means those who embrace the change can stand out and benefit. The growth of machine learning will open up new opportunities to those who embrace it. For example, if you are able to manage and understand the huge amount of data your customers generate, you can start to deliver oneto-one personalised experiences. What are you most excited about right now? The geek in me is excited for the future of

immersive digital experiences. Virtual and augmented reality have made huge strides in the last few years and we are starting to see this technology in the hands of ordinary consumers. 2017 has been tough – will this continue? I’m not an economist but experts point to further uncertainty in 2018. Complication combined with concern can cause more friction and doubt in consumers’ minds. It’s the role of the dealer to navigate this complexity and remove the friction consumers may experience. Do you think the motor industry needs to change? If so, in what way? Disruption is coming from all around: self-driving cars, the changing concept of ownership, growth in EV demand, the list goes on. The challenge will be to embrace the change and turn it into an opportunity. What should dealers be focusing on to ensure growth and a sustained future in 2018? Your customers demand seamless experiences and you’re competing with the best they’ve ever had. Technology gives us the opportunity to create a truly customer-focused communication strategy. Data can help the way dealerships identify customer intent at all points in their journey. Our research shows that during a typical car purchase, your customers will connect to 4.5 devices and access 900 digital touch points within an average two-month consideration period. Is there any habit that dealers should leave behind in their working lives? As mentioned earlier, it’s important that dealers deliver a frictionless experience across the whole purchase cycle. With click to brick being so important, we can use digital in the same way

Max Stolton, industry manager, Google Lives: London. Drives: In market for a car now and willing to accept your best offers. Family: Not yet. Education: BSc international business management. Career: After graduating, I took the usual post-university ski season in Canada. It was there that I began to hone my digital skills, promoting and monetising online video content. Up next was a digital agency in Melbourne before coming home to the UK and moving to London. Prior to moving to Google, I was leading digital marketing strategies for some of the UK’s leading brands, including the Telegraph and Ticketmaster. Brexit – hard or soft option preferred? Whatever becomes the best deal. A weekend away – countryside calm or a busy city break? Countryside. You’ve won the lottery – what’s your first purchase? Aston Martin Vanquish Zagato. a good salesperson asks qualification questions and adapts sales tactics to them. Through the intent a user has shown on your website, you can understand where they are in the buying process and tailor your sales approach. If you had a final word of advice for our readers, what would it be? In order to put the customer first, we need to address how we can know them better, help them faster and wow them everywhere. This can be achieved through the use of data to create predictive experiences based on people’s intent, previous behaviour, and context. Deliver fast experiences through your mobile site and apps and wow them from the first time they see your brand online, walk into your dealership or need help when their car breaks down.

‘Growth of machine learning will open up new opportunities to those who embrace it.’ CarDealerMag.co.uk | 63

Feature.

John

Colinswood WMS GROUP: Trade deal really has to be hammered out or a transitional agreement made.

Mini CV What opportunities will 2018 present? More demand for comprehensive levels of warranty cover as standard and more complete packages for the new/used car buyer may become the norm. Additional products will be in greater demand by dealers to ensure their customers are protected. What do you regard as the biggest threat to the motor industry in 2018? The car industry is one of Britain’s biggest exporters, responsible for 12 per cent of the country’s goods exports, and there are concerns that without a trade deal being hammered out or a transitional agreement, a 10 per cent levy could be slapped on cars. Also, FCA compliance, too much red tape, is turning not just dealers but manufacturers away from insured products. Downward trends in diesel sales will ultimately hit the used car market, but that depends on the increased sales of electric cars. Are there any reasons to be cheerful at the start of this new year? Yes, huge opportunities are available – we just have to think outside the box more and create products within the digital age of marketing to the consumer. We have to remain positive. The world is what it is and we have to adapt to those conditions, and WMS’s approach is just that. What are you most excited about right now? WMS plans for 2018 – new product launch, new branding, great team ethic – continue to be the best in the market, and always working to

provide the exceptional levels of dealer and customer service. 2017 has been tough – do you see this continuing? Possibly for the first quarter. Hopefully there will be some stability in the market, and used car prices will remain sensible, enabling dealers to earn a reasonable margin to satisfy consumer demands of greater levels of service. Additional profit centres will continue to grow and play a major role – certainly within franchise dealers – as margins are squeezed due to the ever-evolving online trading. Used car sales will remain consistent, but again consumers expect the same level of service as a new car buyer gets, so the used car dealer has to up their game to survive. Do you think the motor industry needs to change? If so, in what way? Yes! More transparency for the consumer, focus on customer retention tools, and greater value-added products. What should dealers be focusing on to ensure growth and a sustained future in 2018? Focus on the right stock profile, research their marketing areas in more depth and build consumer confidence by offering the right products that are a benefit to the consumer. Is there any habit that dealers should leave behind in their working lives? Yes, don’t take shortcuts – they always come back and bite you.

John Colinswood, managing director of The WMS Group Lives: Princes Risborough. Drives: L200 Barbarian. Family: Wife, two children and two stepchildren. Education: Normal secondary education where you learn how things actually work. Career: I have been in the warranty business for 40 years. Started at a garage fitting tyres at 15, did three years on the tools in the garage trade then an opportunity came up to sell warranty products and I rose through the ranks until I ran the business. Brexit – hard or soft option preferred? It’s a massive mistake that needs reversing. A weekend away – countryside calm or a busy city break? Love the countryside. You’ve won the lottery – what’s your first purchase? To complete the foundations for the Children’s Round Chapel, which is for the benefit of families of children who have passed away. If you had a final word of advice for our readers what would it be? Dealers have to become more proactive in the digital world of trading, constantly reviewing all areas of the business, and to have their fingers on the pulse to enable swift and efficient changes to market demands.

‘Huge opportunities are available – we just have to think outside the box more.’ 64 | CarDealerMag.co.uk

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Feature.

Victor

Coutin

GARDX: We know we can add value to any dealer as another busy year gets under way.

Mini CV

What opportunities will 2018 present? Given the success of digital technology, this will open more avenues for dealers to interact and engage with their consumers in the way that the consumer wants to be dealt with and when. This type of digital technology also gives the dealer the opportunity to ensure the consumer is fully informed about all products available to them in addition to the sale of the vehicle. What do you regard as the biggest threat to the motor industry in 2018? Retailers are constantly under pressure and margins continue to decrease. Dealers that do not have a clear digital and F&I retail strategy and do not move with the times are at risk of being left behind. Obviously the uncertainty of Brexit still hangs over us and the sooner this comes to a conclusion, the sooner the market and consumer confidence will return. Are there any reasons to be cheerful? Absolutely, we enter 2018 after another year of significant growth. Our paint protection business grew by 35 per cent, our insurance business continues to grow and we are excited about our digital platform driving the further success of our product portfolio. The new collaboration with Modix offers the retail sector a full holistic approach to engaging with and converting consumers. GardX has fantastic relationships with its clients and we continue to grow and develop their performance. Our international business continues to grow with the addition of GardX Russia, in partnership with Inchcape, and GardX Thailand through a local distributor. Watch this space for further international launches.

What are you most excited about right now? Very excited about our recent new business acquisition which launches in early 2018. As a business we have seen phenomenal success through teaching retailers how to promote value in our F&I add-on products and by using a disciplined process to drive sales. Technology allows us to automate this process, this is our real commodity. What we are really excited about is the next couple of years, the advancement of technology will see us offering retailers a complete joined-up approach. 2017 has been tough – do you see this continuing? I have no doubt that 2017 was a tough year for our market and I don’t expect 2018 to be any different. However, we know we can add value to any dealer and believe that we can continue to drive penetration of sales of F&I products increasing a dealer’s profitability even in a difficult market.

Victor Coutin, managing director, GardX Group of Companies Lives: Dubai. Drives: BMW 7 Series. Family: Married with five children. Education: Chichester College, Henley Management College. Career: Established Viking at the age of 19 which grew over 24 years to be a successful franchised dealer group in the south of England for Toyota, Lexus, Chrysler Jeep, Subaru, Lada, Proton and Suzuki (sold in 1999). Pioneered the Japanese grey import business until 2003. GardX Protection, launched in 2003, is now one of the world’s largest providers of paint and interior protection products. Brexit – hard or soft option preferred? Soft. A weekend away – countryside calm or a busy city break? City break. You’ve won the lottery – what’s your first purchase? A large gin and tonic to celebrate!

basis. Adopting and embracing this technology will ensure that good e-commerce practice is followed and will exceed, rather than fall short of, consumers’ expectations.

Do you think the motor industry needs to change? If so, in what way? Yes, absolutely, although we believe it is a slow and gradual process. The key is for retailers to adopt a clear digital retail strategy learning from the professional online retailers. GardX’s digital platform will positively assist retailers on this journey and add profit.

Is there any habit that dealers should leave behind in their working lives? Yes, prejudging and making assumptions on behalf of their customers. Customers are more informed and in control of the buying process than ever before. Continuing to do the same thing will deliver the same results, those that evolve with the market and technology will reap the reward.

What should dealers be focusing on to ensure growth and a sustained future in 2018? Maintaining a strong, disciplined process and engaging with existing and new technologies that their consumers are already using on a daily

If you had a final word of advice for our readers, what would it be? Don’t be afraid to embrace change, innovate, adapt and be flexible. Think like a consumer.

‘Customers are more informed and in control of the buying process than ever before.’ 66 | CarDealerMag.co.uk

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CarDealerMag.co.uk | 67

Feature.

Darren

Sinclair MODIX: Managing director is convinced 2018 will be a great year for our industry. What opportunities will 2018 present? The biggest opportunity for dealers in 2018 will be to transform the experience they offer their customers, using technology to make it more personal and interactive. I expect to see new technology change the market, so that we really start to re-imagine core aspects of the customer journey like test-drives and home delivery. What do you regard as the biggest threat to the motor industry in 2018? Brexit has been described as the biggest threat to the automotive industry in a generation, and although the outcome is not yet clear, there is no doubt it will have an impact. With talk of a potential levy on car exports, there is understandable nervousness in the industry. We must also acknowledge the impact legislation and tax will have on the diesel market for new and used vehicles. We all know that taxes on new diesel cars will rise, and company car drivers will also have to pay more to drive a diesel. Cox Automotive data shows that there’s been a shift in consumer searches for diesel cars, but in the wholesale market we’ve yet to see it fully translate. No doubt this picture will become clearer in 2018. Are there any reasons to be cheerful? Plenty! In a shifting and dynamic market, there are endless opportunities for those agile and forward-thinking enough to embrace them. I find all the possibilities exciting and feel that Modix is perfectly placed to help dealers navigate their way through these changes. What are you most excited about right now? Modix have a very exciting 2018 to look forward to. As we continue to build our end-to-end digital

Mini CV

retailing platform, we have some incredibly exciting solutions that form the core of that integrated platform. We also have Modix AdBox, our search tool that uses a dealer’s live inventory to deliver targeted and relevant Google ads to customers in their local area. And, we recently announced our innovative Modix 360 website imagery solution – an easy way for dealers to take and present highquality 360-degree images and video. 2017 has been tough – will this continue? It’s been an interesting year, with various challenges surfacing, and, in particular, we’ve seen a shift in consumer confidence around new car purchasing. I don’t think that confidence will be rebuilt overnight, but every year brings with it change, some positive and some less so. Do you think the motor industry needs to change? If so, in what way? We need to look at other industries, such as retail, where the customer is at the very heart of the experience – whether that be on or offline. Think about Uber. It’s taken a very stagnant market and completely changed the way we experience this service. There are lessons here for our industry that we’d be wise to learn from and at Modix, we are already looking to do this. What should dealers be focusing on to ensure growth and a sustained future in 2018? Dealers need to embrace the opportunity that digital, and in particular online, presents. Consumers want to do more themselves, online, and earlier in the process. They want to spend less of their time in the dealership doing paperwork when they expect and want to be able to do more of that earlier in the process.

Darren Sinclair, MD of Modix, which is part of Cox Automotive Lives: Basingstoke. Drives: Porsche 911 C4S. Family: Married with three children. Education: MBA. Career: 25 years-plus automotive experience with expertise in transforming operations, sales and service in B2B/B2C within FTSE250, private equity and SMB companies. Darren has been with Cox Automotive in his role as MD of Modix for nearly two years and prior to this held a variety of senior roles at Auto Trader. Brexit – hard or soft option preferred? Hard Brexit (with the right trade deals in place for our industry as part of this!). A weekend away – countryside calm or a busy city break? It has to be a busy city break in Barcelona – great food, great sights, great architecture. I love Gaudi. You’ve won the lottery – what’s your first purchase? Something for my wife, probably a handbag by Hermes. Is there any habit that dealers should leave behind in their working lives? Anything that is preventing them from embracing a digital future that’s focused on the customer experience. We need to learn lessons from other successful retailers to engage with and immerse customers in an exciting and easy-to-navigate world, particularly in the dealership itself. If you had a final word of advice for our readers, what would it be? Focus on the consumer. Use technology to create seamless, integrated, consumer-focused experiences and embrace change. 2018 will be a great year and I’m excited that Modix can play a major role in this. [CD]

‘Dealers need to embrace the opportunity that digital, and in particular online, presents.’ 68 | CarDealerMag.co.uk

SELL CARS FASTER. Modix solutions can help you generate more enquiries Search Marketing | Digital Forecourt | Imagery Solutions Stock Management | Dealership Support

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Audi R8 Spyder V10 Plus Price (as tested): ÂŁ154,720 Engine: 5.2-litre V10 Power: 602bhp Torque: 560Nm Max speed: 204mph 0-60mph: 3.0 seconds MPG: 22.6 Emissions (g/km): 292 70 | CarDealerMag.co.uk

PICTURES: JONATHAN FLEETWOOD

Mercedes-AMG GT C Roadster

Aston Martin Vanquish S Volante

Price (as tested): £157,445 Engine: 4.0-litre turbocharged V8 Power: 550bhp Torque: 680Nm Max speed: 196mph 0-60mph: 3.4 seconds MPG: 24.8 Emissions (g/km): 259

Price (as tested): £211,950 Engine: 5.9-litre V12 Power: 592bhp Torque: 630Nm Max speed: 201mph 0-60mph: 3.5 seconds MPG: 21.6 Emissions (g/km): 302

‘Supercars still remain halo products for manufacturers, giving all buyers an aspirational purchase to aim towards.’ CarDealerMag.co.uk | 71

Feature.

n an age where downsizing, alternative fuels and lower emissions are dominating the motoring industry, it might seem that the market for hugely powerful supercars would be limited, writes Jack Evans. However, this couldn’t be further from the truth. In fact, a recent survey found that just over 36,000 supercars were registered in the UK last year alone – and that’s up an incredible 40 per cent on 2013. Far from being swallowed up by diminishing sales figures, supercars are bucking the trend – and doing so in style. Supercars still remain halo products for manufacturers, giving all buyers an aspirational purchase to aim towards. It’s important for dealers to have these cars in their dealerships too. They show the breadth of what a company can produce and – more than anything – they look hugely impressive on any forecourt. Which brings us neatly to our trio here. All three represent the very pinnacle of current performance-car technology, boasting a lot of cutting-edge features that we eventually find trickling down to regular consumer vehicles. Let’s take a look at the big yellow one first. Packing a hugely powerful V10 and Audi’s legendary quattro all-wheel-drive system, the R8 is regarded as one of the most useable everyday supercars, and here – in Spyder V10 Plus configuration – it’s certainly one of the prettiest too. That is, if it weren’t up against the effortlessly stylish Aston Martin Vanquish S Volante. The most old-school here – its naturally aspirated 6.0-litre V12 is archaic by modern standards – it’s dripping in classic Aston styling touches, from the intricate bonnet vents to its quad exhaust pipes. Finally, there’s the bruising Mercedes-AMG GT C Roadster. It looks mean and sounds mean too, bringing a muscle-car feel with a razor-sharp edge that you could only get with an AMG product. Our test car, finished in matt grey paint, looks like something Bruce Wayne would have been happy to drive around in. In terms of engines, what exactly do we have to play with? Leading the charge – in capacity stakes, at least – is the Aston’s 5.9-litre V12. Powering just the rear wheels, the howling V12 can allow the Vanquish to hit 60mph in 3.5 seconds before topping out at 201mph. Though Aston Martin CEO Andy Palmer has promised to keep producing V12s for as long as possible, it’s hard to believe that this mechanical Tyrannosaurus will be with us for too much longer. The Merc’s engine, meanwhile, is very much a reflection of the times. At 4.0 litres, the twinturbocharged unit is smaller in capacity than the other two here but still produces a hefty 550bhp and 680Nm of torque. Incidentally, this engine is the one you’ll find in Aston’s new DB11 V8 and Vantage models – a result of the British manufacturer’s tie-in with AMG. And with so many horses thrashing around,

72 | CarDealerMag.co.uk

The Aston is arguably one of the prettiest drop-tops on sale today

where do you take them to gallop? The New Forest is one of our favourite stamping grounds (excuse the additional horse pun), and it’s the ideal spot for a bit of roof-down motoring. We also managed to hit it on a beautifully crisp winter’s day mercifully lacking in any rain, which only works to play into the Audi’s favour and diminish the capability of the remaining duo. The area can’t quite match our usual playgrounds of north and south Wales for visual drama, but it makes up for this with tight, technical sections that are contrasted by wider, more open corners. This brings us to one of the critical aspects of a supercar: how it actually drives. After all, a supercar can look as flamboyant as it likes, but if it isn’t as thrilling to pilot as it is to look at, then it really can’t keep its head held up high. Of course, all three here offer up exceptionally good driving experiences. But it’s the subtle differences between them that create completely

‘The Vanquish S Volante is dripping in classic Aston styling touches, from the intricate bonnet vents to its quad exhaust pipes.’

ASTON MARTIN VANQUISH S VOLANTE

Dealer’s view Aston Martin Leeds (JCT600)

A spokesman told us: ‘We’ve sold four Vanquish S Volantes and 10 coupe versions. The only reason we feel the Volante hasn’t sold as well currently is just because it was launched in the winter months. ‘We always like to have all our models in the showroom, and this is important when the Vanquish S is our flagship. ‘It’s a great car and is the best Vanquish that we’ve ever made, as it has more power and looks incredible. ‘Our customers see it as the flagship of Aston Martin and what many see as the ultimate Aston Martin. ‘While it may not have all the technology the DB11 has, it’s the car that people like to work towards the most.’

Three supercars in their natural habitat CarDealerMag.co.uk | 73

Feature.

‘Up and running, the Mercedes feels the most frenetic of the three.’

different characteristics. The AMG’s steering, for instance, is far quicker than you’d expect to accompany a car of this size. It takes a little getting used to but it means that it feels agile and eager to change direction. The Audi’s, in contrast, feels solid and predictable – as you’d expect from an Ingolstadt product – and this makes it exceptionally confidence-inspiring. It does, however, make it feel perilously close to a regular Audi – though one with a huge amount of punch. The Vanquish steers in a predictably old-school way. The wheel has plenty of weight to it, and the car’s changes in direction are undertaken with minimal fuss – though being rear-driven, it’ll still happily let you know when you’re starting to take liberties. It feels heavier to drive than the other two, and there’s a good reason for this – at 1,919kg it trumps the Audi’s and Mercedes’ 1,695kg and 1,735kg respective kerb weights 74 | CarDealerMag.co.uk

by some margin. Blame that on older building techniques and that V12 sat up front – although powerful, it’s extremely heavy. Up and running, the Mercedes feels the most frenetic of the three. It’s a little wilder than the other two, and when coupled with its powerful V8 feels every bit the modern-day muscle car. Treat it without the proper respect and you’ll very quickly find yourself spinning out like an ice skater with their shoes on the wrong feet. However, drive neatly and carefully and it’s a car you can quickly find a rhythm in. Funnily enough, it has the same characteristics as the more track-focused AMG GT R, which we drove at Silverstone a few months ago – just softened off for the road. The Audi is almost too easy to drive, even in cold weather such as on our shoot day. Though its tyres struggle to find temperature

MERCEDES-AMG GT C ROADSTER

Dealer’s view

Tony Talbot, sales executive at MercedesBenz of Portsmouth ‘I don’t know an exact figure but we’ve certainly sold a few. The coupe does tend to be more common than the Roadster, though. On range-topping cars like the AMG GT C, we find it is often loyal customers who purchase the cars from us. ‘It is a fabulous car obviously and it sits well in the market place, while being one of few front-engined supercars makes it a bit different. ‘It is an aspirational product but Mercedes as a whole is an aspirational brand. ‘Mercedes-Benz is also unique because it can be pitched against supercar manufacturers such as Ferrari and luxury brands like Rolls Royce, which Audi and BMW simply can’t compete with.’

The GT C Roadster uses a powerful turbocharged V6 engine

The drop-tops defy the cold weather

and therefore grip, the Audi manages to be capable and confidence-inspiring at all times. In our Road Test of the Year 2016 we named its hard-top stablemate our car of the year, owing to its all-round usability and sledgehammer levels of performance. The Spyder is just as easy to drive as the coupe, and the shifts offered by its seven-speed S-Tronic are crisp on both up and downshifts. All car enthusiasts can appreciate a supercar – but it’s the way this trio is appreciated by the general public that shows you how people feel about them. The Mercedes, for instance, was met with a variety of knowing nods. The Aston was the clear public favourite, with any passer-by quickly admitting that it was the one they’d take home if they could. The Audi, meanwhile, was somewhat of a mixed bag: some loved the bright yellow paintwork and over-the-top exhaust note, while others thought it was just too ostentatious. But then cars like these aren’t meant to please everyone, after all. As you’ll see on these pages, dealers see supercars as ways to attract people into the brand. In practice, they draw crowds wherever they’re parked. When they’re sitting in a dealership, there’s little wonder people flock to have a look. We’ll admit, the 40mph speed limit that is so rigorously enforced on roads within the New Forest does dampen the experience of driving cars such as this somewhat, but for the sake of good photographs it seems like a reasonable sacrifice. What travelling at these sorts of speeds does, however, is let you know how supercars deal with around-town speeds – the ones that numerous performance car owners in central parts of London appear to love travelling at. And here’s the rub: all three here do remarkably well in dealing with lumps and bumps in the road – far better than you’d expect, given the low ride heights and painted-on tyres. The Audi is arguably the stiffest here and, as a result, does jostle about a fair degree more than either the Mercedes or the Aston, but it’s still not half bad. It’s that final car – the Vanquish - which returns the comfiest ride of the three. Aston recently announced that it had returned record sales growth in 2017. Far from being swept up in near-constant decline in the automotive sector, it has flourished, with consumers flocking to the brand. It’s easy to see why when you look at the Vanquish – inside and out it feels special. In truth, the cabin quality isn’t quite what you’d expect from a car of this prestige and price – the plastics are quite hard and the infotainment system is woefully poor – but it still feels like a proper Aston, which is probably why most people are drawn to the marque. The cabin quality in the Audi, meanwhile, is solid and, well, German. It’s also the source of our main criticism about the R8 Spyder – the seating position. Most likely because of the conversion from hard top to soft top, the cabin has become shorter, which makes CarDealerMag.co.uk | 75

Feature. AUDI R8 SPYDER V10 PLUS it an incredibly cramped place to be. It leaves you driving with your knees up high, and this can be quite tiring over longer periods – not what you want from an everyday two-seater. You can get the steering wheel where you want it, but an inability to sit in the proper position does spoil the overall driving experience. In contrast, the Mercedes is a comfortable place to be. There’s no denying that the high dashboard and monstrously large central tunnel can make it feel slightly intimidating, but once you’re up and running it’s a quick process to get acquainted. The main controls are, however, laid out without any rhyme or reason, and there’s a variety of buttons that feel straight from the parts bin: the window switches, for instance, feel fresh from a mid-2000s E-Class. As we coast through the narrow roads in the heart of the New Forest, walkie-talkies crackling with commands from our snapper, there’s a certain degree of commotion. People look at the trio as if three Martians are walking down the road, and when you compare them to anything else on the road, you can understand why. We even manage to stay roof-down, despite the everfalling temperature – which made the cars stand out even further. A trio of high-performance convertibles parading through the New Forest isn’t something you see very often – particularly ones as loud as these. In fact, we quickly became somewhat concerned with how much noise they were making, particularly with the number of horses nearing the margins in the road. The 40mph limit does make sense when you realise just how many potential hazards there are at either side of the tarmac – and how much trouble a powerful supercar could quickly get itself and its driver into. We even had one motorist at the side of the road film us as we tracked up and down. Worried for a moment that we had done something wrong, we stopped to check. There was nothing to be worried about, though – she just had a niece who loved supercars. Not just us, then. One distinct problem with supercars such as these is simply how low down they are. Accessibility aside, what you really notice – particularly when driving in areas such as the New Forest – is how many stone chips flick up worryingly close to the windscreen. Combine this with the noise that gravel makes when it’s caught inside the wheel arch and you have a worrying amount of unpleasant sounds – all the worse in cars of this price and prestige. We’re getting perilously close to having to make a decision on which of these three is the best. As you can imagine, it’s a tricky choice – and one that we mulled over for some time, throwing positives and negatives back and forth like clowns juggling batteries. All three cars here would be an admirable choice if you were after a new supercar. The Aston Martin is a last bastion of old-age V12 76 | CarDealerMag.co.uk

Dealer’s view Mark Tuckey, R8 product expert at Harwoods Portsmouth Audi ‘The R8 is a halo product and it generates a lot of interest in the brand for us, even if this doesn’t equate to sales, as we’ve only sold one of the latest-generation R8 Spyders. ‘At weekends we get a lot of youngsters coming into the showroom to have a look at the R8, and parents often start to look at other Audis that are more in their price range. Unfortunately, we do have to keep the R8s locked due to the high list price of them and we don’t want young children fiddling about with the controls! ‘It’s a fantastic halo product for the brand, alongside the A8. We don’t sell many at all of them but it draws in a lot of people. ‘We have to have an R8 in the showroom at all times – it’s a requirement from Audi if the dealer is a dedicated Audi sports centre, which Portsmouth Audi is. Only 35 centres in the UK are.’

‘A trio of high-performance convertibles parading through the New Forest isn’t something you see very often.’ mechanicals, offering audible thrills that are unlikely to be with us for much longer. For that, it’s worth a huge amount of praise indeed. The Audi is a masterclass in how to create a fast, flamboyant and well-made supercar that you can genuinely drive each and every day. However, its shortened cabin is a genuine fault here and one that’s hard to look past – particularly if you’re anything over five foot seven. Finally, there’s the Mercedes. It’s one of the spikier cars to drive on this list, but that’s what makes it exciting. There are niggles – interior build quality for one – that bring it down a touch, but it’s a genuinely special place to be. You can probably see which way we’re leaning. The AMG GT C Roadster, with its knuckleduster attitude and frankly rude performance, is the one we’d go for. It’s comfortable, relatively practical but, more than anything, it’s exciting. And in this segment excitement is key – which is why the Mercedes is our deserved winner. [CD]

Audi’s quattro system gives the R8 huge amounts of traction

Darren’s view Mercedes-AMG GT C Roadster The AMG is easily the best all-rounder here. It looks fantastic and loses no practicality compared with its coupe equivalent. The sharp steering is at odds with the GT cruiser appearance, but once you’re tuned in, the eagerness of direction changes is a joy. Could do with more noise, though! Audi R8 Spyder V10 Plus For me, the R8’s glorious V10 and endless grip mask any complaints about it being ‘too easy’ to drive – the coupe is still one of my favourite cars on sale today. Sadly, the Spyder’s cramped interior would make it near impossible to live with unless you’re particularly vertically challenged. Aston Martin Vanquish S Volante While it looks the most elegant from the outside, the Aston is really let down by its interior, which feels positively ancient – the infotainment screen is laughable. Fortunately, it makes up for it somewhat by being a perfectly comfortable cruiser, while the howling V12 is a delight. CarDealerMag.co.uk | 77

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A better way of doing business 78 | CarDealerMag.co.uk

Focus on. Top suppliers of 2018

Looking for a new partner for the year ahead? Let us help! Top-quality companies are ready to deliver excellent products and services to get you off to a flyer

here’s nothing like the start of a new year to get you thinking about the suppliers of products and services you work with – and whether they’re delivering the results you want. Perhaps you’ve been working with the same business partners for some time now and are perfectly happy with the service you’re receiving and the outcomes you’re experiencing. Then again, maybe you’re ready to explore a possible association with someone new. And why not? After all, as the saying goes, a change is as good as a rest. Free with the next edition of Car Dealer will be our annual Suppliers Guide – a standalone booklet that you’ll be able to keep on your desk all year and refer to as and when you need a particular product or service. But for now, allow us to tell you about a few selected companies that can all help your business survive and thrive during 2018, ensuring that you have plenty of happy customers and make more money.

by DAVE BROWN @CarDealerDave

First up we have WMS Group, a company mainly known for the provision of top-quality warranties – but these days, there are many more strings to its bow. As managing director John Colinswood tells us: ‘The WMS Group is no longer just a warranty provider – we are offering dealers a complete premium package.’ Next in our feature is Modix, a company that’s helping dealers evolve to meet the demands of digital. The company has a number of new and innovative products that are designed to help you stand out from the crowd and provide the best customer experiences possible. GardX is a name very familiar to the readers of Car Dealer and is certainly not a company that could ever be accused of resting on its laurels. With its new product Spin 360 now on the

market, it’s transforming what it can offer to dealers – and you could be among those to reap the benefits. The team at MotoNovo Finance say they are doing more than any other finance company to promote the value of dealer finance and to support dealers in this area – so why not get involved? You’ll be glad you did. And if you’re seeking some safety and security around your key management systems, look no further than Traka. Efficiency improvements delivered by Traka systems routinely deliver return on investment to dealerships within a very short timeframe. That’s not all! Looking to communicate more effectively with your customers online? Visitor Chat could be a partner for you and is a company that constantly adapts to the changing car market in the UK. Finally, more and more dealers are switching to Codeweavers and the firm is only too delighted to explain why.

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80 | CarDealerMag.co.uk

Focus on. Top suppliers of 2018

Shaking up the warranty industry WMS GROUP

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espite operating in a saturated marketplace, the WMS Group has achieved steady year-on-year growth through its commitment to driving up standards across the industry. During the past few years, the company has implemented an extensive range of initiatives that has seen it lead the market and become a top provider of extended warranties and associated products. However, tremendous growth is on the horizon for the multi-award-winning firm as it embarks on a series of major developments that are set to shake up the aftermarket warranty and repair sector once again. John Colinswood, WMS Group managing director, said: ‘We’ve invested a considerable sum into the business to provide dealer partners with the most comprehensive products, service and support on the market today.

‘The WMS Group is no longer just a warranty provider – we are offering dealers a complete premium package.’ John Colinswood, WMS Group managing director ‘With consumer and dealer expectations reaching an all-time high, it is essential that we deliver a consistently excellent platform at every stage.’ The company announced the launch of its own recovery breakdown division, WMS Rescue & Recovery, recently, and initial demand from dealers has been exceptionally strong. Via a national network of the highest-calibre vehicle recovery operators (VROs) with an aggregate of more than 3,000 recovery vehicles, the firm has created a dedicated contact centre in Leeds supported by the recruitment of technically trained operator staff, plus advanced systems that link directly into the VROs’ systems via the APEX network. Late January will see the relaunch of its motorcycle warranty arm, WMS Motorcycles. The two-wheeled arena is a growing market for the group, and coupled with the recruitment of a specialist motorcycle account management

team, the firm has recognised a number of opportunities that will be instrumental in its growth. Furthermore, following the introduction of the dealer-guarantee version of its flagship Safe and Sound ultimate used car scheme last year, this network has also seen rapid expansion. This is particularly prevalent in the franchised sector, where dealers are recognising it as a superior programme that ticks all of the boxes for their used stock. Colinswood is optimistic about the coming year. ‘With PCP volumes set to rise again, we are going to do everything we possibly can to generate record sales for our dealer network over the coming 12 months and beyond,’ he said. ‘The WMS Group is no longer just a warranty provider – we are offering dealers a complete premium package comprising all the tools and resources they need to take their businesses to the next level.’ CarDealerMag.co.uk | 81

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Focus on. Top suppliers of 2018

Modix is helping dealers evolve to meet the demands of a digital future MODIX

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he way consumers research and purchase products has changed. Gone are the days where you visit different shops to find the ideal item – nowadays, that research, and the purchase, is done online. The automotive industry is no exception – consumers want to access more information themselves to make an informed choice about their next vehicle without having to visit a dealership until they are close to a final decision. Ultimately, some will want to manage the entire process online. Time is precious to consumers. They don’t want to spend their time in the dealership conducting admin, they want to do more themselves online while still receiving the same level of service. Taking this into consideration, it is important that each and every car dealership has a number of innovative and intuitive tools that are key to a future of digital retailing. Darren Sinclair, managing director of Modix UK, has highlighted this, saying: ‘Up to 90 per cent* of consumers will carry out research online before deciding to make a purchase, and up to 46 per cent** find a dealer website the most helpful source of information during their research. Therefore, the opportunity to influence their decision comes before they set foot in your dealership. By the time they walk through your doors, they are likely to have already made up their mind on the next vehicle they want to purchase.’ Connecting with and understanding consumers’ needs is critical, providing a seamless technology-driven experience that allows consumers to do more themselves online and delivers the experience that they require. At Modix, our focus is on understanding consumers’ needs so we can more effectively help our clients evolve their online experience, and ultimately sell their cars faster. Our global scale allows us to gain insight into the wider market and learn from it to accelerate our development here in the UK. This awareness of the world around us allows us to easily identify innovative ways to help our

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Dealer 360° imagery

Website Commerce tools Finance negotiation Part exchange Click to buy Valuation

‘By the time they walk through your doors, they are likely to have already made up their mind on the next vehicle they want to purchase.’ clients stand out from their competitors and attract more customers. It is clear that a broad, integrated online strategy is essential as consumer behaviour and technology continue to drive the world around us. Incorporating tools that allow easy engagement with the new car-buying journey will ensure that no customer is lost as a result of not being able to make contact where needed, and moving more of the admin tasks online will improve the customer experience. For customers, the future is bright – the introduction of more technological advancements allows the key pain point to be reduced and ensures that they are able to find the information they need at the simple click of a button. At Modix, we have a number of new and innovative products that are designed to help you stand

out from the crowd and provide the best user experience possible. These include Modix AdBox, a search tool that uses a dealer’s live inventory to deliver targeted and relevant Google ads to customers in their local area, Modix 360, the easiest way to take and present high-quality 360° images and videos on your website, and Modix Website, transforming websites from lead drivers to sales platforms. To find out more about Modix and the future of digital retailing, please visit www.modix.co.uk or call us on 0333 444 0351.

Sources: * Google, The Drive to Decide, 2016 ** Modix and Motors.co.uk, Car Buyer of the Future, 2017

CarDealerMag.co.uk | 83

Automotive Automotive Insurance Insurance Products Products

cosmetic cosmetic accident accident repair, repair, asset asset protection, protection, tyretyre andand alloyalloy wheel wheel

Official Official Partner Partner of CDX18 of CDX18 | T: CarDealerMag.co.uk T: 84 01243 01243 376 376 426 426 E: info@gardx.co.uk E: info@gardx.co.uk W: www.gardx.co.uk W: www.gardx.co.uk

WINNER WINNER

Focus on. Top suppliers of 2018

Working in partnership with dealers and delivering on our promises GARDX

W: gardx.co.uk T: 01243 376426

ardX was one of the most innovative companies around in 2017, and with its new product Spin 360 now on the market, it’s transforming what it can offer dealers. Speaking with Car Dealer, the company explained that it was working closely with dealerships of all shapes and sizes to ensure it delivered products that worked for them. Amanda Massey, head of sales, said: ‘If dealers are looking for extra margin on their car sales and to improve their retained profitability, they should be looking to work with GardX. Why? Because GardX doesn’t just sell to the dealer and walk away. GardX actually works in partnership with the dealer to ensure that the products and services it supplies are both understood and sold as part of the dealer’s sales processes. ‘You could almost say that what GardX is providing isn’t the product as much as the way the product is supported and sold. ‘To support our core mantra, we continue to be at the forefront of development in these areas and we work tirelessly to ensure that our products and services remain relevant and best-in-class for our partners and consumers. ‘We have a diverse market-leading product portfolio that gives added profitability to our dealer partners. Our core focus is supporting our partners and delivering upon the promises we give. Evidence of this can be found in the growth of our client base and the real monetary difference we have made to their businesses.’ The newest addition to the GardX product line-

GardX’s Spin 360 product picked up the title of Used Car Product of the Year at the 2017 Used Car Awards up is the Spin 360 digital platform, which allows dealers to drive forward their online presence while bringing the full GardX product portfolio to the attention of their customers early on in the car-buying journey. Massey added: ‘What the Spin 360 product offers to dealers is the opportunity to give the customer a previously unseen level of engagement and control of the vehicle imagery both outside and, just as importantly, inside the vehicle. The customer is more engaged in being able to move the image to what they want to see, and this immersive experience commonly increases time spent on the vehicle by 57 per cent ! This allows the dealer the opportunity to highlight more specification and information to the consumer through the use of ‘‘hotspots’’.

‘These hotspots are the opportunity for the dealer to ‘‘sell’’ the vehicle specification, such as navigation and safety features. Dealers can also add additional products, such as paint protection or dealer-fitted parts, as well as services such as Gap insurance, delivery and servicing packages, all before the consumer has even spoken to, or visited, a dealer. This means consistent sales presentations through the use of additional imagery or engaging video content. ‘As consumers continue to move further online and make their decisions prior to visiting the dealership, dealers must make better use of highquality presentation tools such as Spin 360.’ Increased consumer engagement and the opportunity to present relevant products and services to the consumer in a more engaging and immersive manner than ever before are the key benefits to the dealer, and all while the customer feels in control. Massey explained: ‘The consumer in almost all cases has made their mind up before visiting the dealership. Therefore, the dealer has to ensure that their online presence and vehicle display will give the consumer all the information that they would have previously only received when visiting the dealership. ‘The Spin 360 service allows the dealer a real opportunity to market the vehicle in a way that they would in a showroom, and to highlight the vehicle’s specification and the services they offer, all in a highly engaging and immersive manner that the consumer controls. Previously, much of the specification and additional services would be less obvious to the consumer, or even buried away in text on other pages of the dealer’s website. ‘The Spin 360 product also supplies the dealer with comprehensive reporting. ‘This allows the dealer to understand what items and services each consumer is looking for, and therefore helps the dealer to talk to the customer about the most relevant services, increasing the likelihood of conversion.’

CarDealerMag.co.uk | 85

Driving forward through innovation and change For more than forty years, MotoNovo Finance has been proud to deliver a range of innovative and quality products and services, helping hundreds of dealers across the UK increase their sales. MotoNovo Finance can help your customers realise the benefits of dealer finance too, not only at the point of sale, but also at key points throughout the buying journey.

MotoNovo dealers benefit from: •

Digital guides

•

Dealership funding

•

Online finance calculators

•

Charity Match Funding Programme

•

A secure online portal to all of our products

•

F&I online data

FREE point of sale materials for your showroom and website

•

Sales lead generation tools

•

Corporate hospitality events

•

Staff incentive programme

•

Local Account Manager support

Visit www.motonovofinance.com and discover how our award-winning products, services and support can help you sell more vehicles and finance.

MotoNovo Finance, a division of FirstRand Bank Limited (London Branch). Registered in England (Branch Reg. No: BR010027) at Austin Friars House, 2-6 Austin Friars, London, EC2N 2HD. FirstRand Bank Limited is authorised and regulated by the South African Reserve Bank. Authorised by the Prudential Regulation Authority. Subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request. FirstRand Bank Limited (London Branch) is a branch of FirstRand Bank Limited, a public limited company registered with the Companies and Intellectual Property Commission in South Africa (Reg. No. 1929/001225/06) Head office: 4 Place, Corner Fredman Drive and Rivonia Road, Sandton 2196, South Africa. 86Merchant | CarDealerMag.co.uk

Focus on. Top suppliers of 2018

Finance champions go the extra mile to help dealers win custom MOTONOVO

W: motonovofinance.com T: 0844 770 4438

hen choosing any supplier, dealers need to have confidence that they are working with a supplier they can rely on to support them. Of course, a range of factors need to be considered. The service, price, people and products will be important, but above all of these, it is the wider business proposition, ethos and track record that can provide dealers with peace of mind. At MotoNovo, we believe that we are doing more than any other finance company to promote the value of dealer finance and to support dealers in realising the benefits of a positive, innovative and high-integrity approach to offering finance to their customers. We really do go that extra mile to attract and retain customers for our dealers. In fact, this ethos is embedded deep in our culture with our Mission Statement:

Our mission To lead the industry in adopting a new and sustainable customer- and dealer-centric model that embraces the power and reach of the digital channel. Put simply, we will work with dealers to capture customers in the right place, at the right time, while always meeting their needs. Side by side with dealers We are proud of our commitment to dealer finance. Time after time, we have stood up to champion the industry, and we are always ready to support dealers through industry changes and challenges. As part of this commitment, we have worked hard over the years to forge close working relationships with a growing number of dealers. Like any business, we may not get it right every time, but the nature of good partnerships is working in tandem; overcoming obstacles and finding ways to move forward together. The professional relationships and bonds of trust we create with dealers allow us to do just that.

Compare our track record From a market share of less than two per cent in 2004, today MotoNovo has grown to become the second-largest independent used car financer in the dealer finance sector today, with a market share exceeding 20 per cent. In a highly competitive market, this growth hasn’t been achieved by being the cheapest option but from a total commitment to helping dealers succeed. Our dealers’ success with finance as a marketing and income source is a perfect example of how creating greater value – rather than simply providing a cheaper product – is the best route to sustained success. Innovations that drive dealer success Our all-new car aggregation service – findandfundmycar.com – typifies our approach to supporting dealers while leading the market from the front. The site is the latest addition to a whole portfolio of fresh and exciting ideas we have delivered over recent years. Credentials to prove our case We are proud to have won many awards over the years for the quality of our work and our innovative approach. Perhaps one of our most important recognitions has been our consistent ranking as one of the UK’s top employers. In 2017, MotoNovo was recognised for the third successive year in the Sunday Times 100 Best Companies to Work For, as the 12th Best MidSized Organisation To Work For In The UK. Quality employers attract and retain quality people. And it is the people in Team MotoNovo that truly stand us apart. The choice is yours No single supplier has a divine right to your business. Our success has been earned by consistently demonstrating our dealer-centric credentials. We have established a reputation for being bold, innovative and ambitious and for working collaboratively alongside our dealers for our mutual benefit. If this approach resonates with you, we always welcome the opportunity to hear about your needs. Call us on 0844 770 4438 and we will be happy to meet you. CarDealerMag.co.uk | 87

Traka Automotive

The only viable key management solution for automotive dealerships Traka Automotive creates hundreds of opportunities every day to: • Reduce costs • Be more productive • Sell more cars • Improve customer satisfaction • Know more about how your business is performing

Make money every time a key moves in your dealership Visit our website at traka-automotive.com to see videos, case studies, cost benefit analysis and much more.

Email automotive@traka.com or call 0845 225 2910 88 | CarDealerMag.co.uk

Focus on. Top suppliers of 2018

Key management system that will boost profits and increase security TRAKA

E: automotive@traka.com T: 0845 225 2910

raka Automotive is the most advanced, fully networked key management solution available today in the UK. It has been developed specifically for the automotive market to deliver improved security, increased productivity, improved CSI scores and increased profitability to dealers. Efficiency improvements enabled by Traka Automotive routinely deliver return on investment to dealerships and service centres within three to four months of going live. Traka Automotive works with the largest and most successful automotive groups in the UK including Sytner Group, Mercedes-Benz Retail, Lookers plc, Arnold Clark, Jardines, Peter Vardy, Marshall, HR Owen, Car Giant, Car Shop and many others. More than five million keys have been managed and protected by Traka Automotive and more than 110 million key movements recorded – with more than a million more key movements being added each month. Key security is paramount for dealerships using the Traka Automotive system. Access to keys is only given to authorised individuals using PIN codes, proximity access cards or biometric fingerprint readers. When a car arrives at a dealership, vehicle details are pulled from its DMS into the client’s Traka Automotive software automatically as the keys are allocated to an Intelligent Fob (iFob) which identifies the car during its life within the business. As the iFob is slotted into a networked Traka key cabinet, the system communicates to other users which slot and cabinet it is in, who had those keys last and when they returned

the keys to that cabinet. The system provides a full audit trail of key and vehicle movements and vital knowledge about activity being undertaken by everyone throughout the business. Traka Automotive system users can now access the system via Android and Apple iPhone or iPad smart devices. This enables staff to find out which cabinet is holding relevant keys in seconds via their mobile device right there and then, rather than calling a desk-bound colleague to raise their query – saving the business even more valuable time. With Traka Automotive, you get a complete turnkey project service for automotive dealerships. Following the project scoping stage, our consultants will survey the dealership to understand and document vehicle flows and parking locations across and between sites. The customers’ vehicle process flows and parking locations are then fed into the software – ensuring the system’s configuration matches dealers’ bespoke processes and business needs. Our consultants recommend the size and location of the key cabinets required and advise on IT requirements to make the system live. Our highly experienced automotive technicians then install the cabinets and software, working in conjunction with the dealer’s in-house IT team as required. Traka Automotive software is installed on as many PCs and mobile devices as required – giving complete visibility of key and vehicle locations for all designated users. Our consultants will spend as much time as required on-site delivering training and monitoring of the system to ensure effective usage and 100 per cent acceptance. Long after the installation, our support staff will continue to monitor effective usage from statistical feedback and personal visits to ensure the maximum benefit continues to be enjoyed by the customer. CarDealerMag.co.uk | 89

Live Chat - 24/7 â&#x20AC;&#x153;Join the dealers who are making it easier for customers to connect in 2018â&#x20AC;?

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Say YES to Live Chat for your dealership in 2018! Detailed Analytics 24/7 Coverage Multi Department Automotive Specialists

Call 02382 350130 Visit www.visitor.chat Email sales@visitor.chat 90 | CarDealerMag.co.uk

Focus on. Top suppliers of 2018

A bright future ahead for live chat in the automotive industry VISITOR CHAT

W: www.visitor.chat T: 02382 350130

hen Robert Arthur co-founded Visitor Chat alongside his brother Graham, few could have predicted the swift nature of the firm’s ascendancy within the motor industry. With Robert’s entrepreneurial background in technology within digital advertising, and Graham’s past in automotive mystery shopping and customer experience within the industry, the pair were certainly a strong foundation for such a business. Heading into 2018, Visitor Chat’s market share is ever-increasing, thanks to its fast, marketleading service, with some new customers seeing it integrated into their websites on the same day as ordering, thanks to the prompt work of the Visitor Chat design team. As of now, Visitor Chat is one of the most widely used automotive live chat providers across the UK, managing interactions on behalf of thousands of car dealerships nationwide, with countless clients using selfmanaged, joint-managed or fully-managed chat facility options. Most notably, Visitor Chat provides live chat facilities to dealerships across the AA Cars network. With another successful year under Visitor Chat’s belt, we spoke to chief operating officer

THE company’s CEO, Robert Arthur, summed up why VisitorChat is quickly becoming the top choice for live chat solutions in the automotive industry. He told Car Dealer: ‘We constantly adapt to the market. We receive feedback from our customer base. Our customer base will say that they want to advance into a new area, and that they’ll need deeper analytics in X, Y and Z. ‘And that’s something that we develop. Everything we do is industry-specific, and this is where the company really adds value, and why we’ve seen such growth across the map in our first two years of trading.’ Chris Wateridge to learn about what lies ahead for the company and the automotive live chat industry as a whole. What is the future looking like for automotive live chat? All the indicators point to progress. Live chat will be solidifying its value to independents, groups and OEMs in the coming year. We’re anticipating increased demand, not just for the platform but also for additional features, plus requests for even deeper levels of analytics and measurement tools to boost value understanding across the industry. As a company, we absolutely embrace the industry’s desire for deeper understanding of this valuable communication tool and will be prioritising this message in the communication and delivery of our product and services.

What do customers like about Visitor Chat? Speed of response is the number one reason people choose to engage with a live chat channel – instant connection, fast answers. The nature of the chat medium means that responses are nice and clear, ultimately resulting in very high customer satisfaction feedback from our users. Given that customers appreciate it, it has also shown to be helpful as a sales driver, and we anticipate that the use of live chat across our industry will become even more popular in 2018, as adoption rates continue to increase alongside the recognition of the commercial value that a chat solution adds. What is next for Visitor Chat? The development in terms of online communications will continue to present great opportunities for dealerships. As a tech innovator, we will be assessing ways to add even more value to the Visitor Chat platform in 2018, with many exciting projects currently in development, incorporating social media, deeper analytics and integration. For example, we’re going to open up live chat and allow even broader access to it across all access channels.

CarDealerMag.co.uk | 91

Why Choose Codeweavers? Codeweavers provide a range of finance calculators, solutions and lead generation tools for your website, helping you to sell more cars by creating a seamless finance journey for your customers through Codeweavers’ multi-lender platform.

Codeweavers provide you with Car buyers’ Information even if they don’t complete a finance form

Ability to create dynamic special offers on your website instantly

Insight on what finance offers and vehicles your car buyers are searching for

Solutions and styles of finance explainer videos that can be branded and tailored to suit your website

Fully branded and detailed finance quotes can be printed and emailed and used in your marketing campaigns

Finance forms can be standalone and can be added anywhere on your website Instantly provide finance quotes to your car buyers via phone, email, from your website or in your showroom

Quote and propose your car buyers, directly to your chosen lenders from your website

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

contactus@codeweavers.net

0800 021 0888

Focus on. Top suppliers of 2018

Why more dealers are switching to Codeweavers CODEWEAVERS

W: codeweavers.net T: 0800 021 0888

ealers trust Codeweavers to deliver technology on time and on budget and which does exactly what was promised. More than that, the support provided by the business is personal and authentic, and the team is committed to telling its customers not what they would like to hear, but rather what they need to hear. This combination is an approach that has won us many long-term friends across the motor industry; pleasantly, it has also seen the business win multiple awards for its innovation and technology. We love working in the industry and working continuously to improve the way technology can help our customers to succeed. Our reach From our finance calculator background, where we are still very much the industry experts, we have branched out, working with the industry to develop a range of finance and e-retail technology solutions. Rather than just talk about the future, something we love to do, when problem-solving with customers, we take these ideas to the next level. Today, our technology is helping to sell more new and used cars by creating a seamless finance and e-retail journey. In terms of ‘omnichannel’ activity, our multi-lender platform is making this a reality right now, bringing customers and dealers together. Last year Codeweavers generated 229,897,440,000 finance calculations and 8,146,800,000 finance quotes – that’s a few billion reasons why dealers choose us! Here are a few more: Speed of delivery We typically deliver a project in a matter of weeks or even days. We are all about agility and responsiveness; after all, this is how the motor retailing sector works and we are happy to work with it!

Technical knowledge and expertise ‘Code’ is in our name and it is what we do. Behind the scenes are some of the brightest technology minds in our industry and customers are more than welcome to come and meet them and our wider team of committed professionals. Over the last 16 years, we have added to our pool of talent continuously. Today, the freshest new ideas combine with seasoned motor industry insight. It means we combine innovation and pragmatism and a breadth of insight across all corners of motor retailing. Partnerships and integration with third parties Today, we partner with all mainstream lenders and media companies in the automotive industry ensuring that our technology solutions implement effectively into manufacturer and dealer websites. Short-term contracts We don’t do long-terms contracts, we do 30 days. It’s a confident statement of our capacity to innovate continuously and keeps us on our toes. After all, we see the speed and pace of change as an opportunity, not a threat.

‘When problem solving with customers, we take ideas to the next level.’ Creating value Our finance and e-retailing technology expertise is giving motor retailers a vital edge. Today, we provide a range of technologies that create and drive showroom traffic and increasingly support that ‘traffic’ that buys online. By helping to promote affordability and creating a more transparent and involved buying experience, we are helping more retailers to stand out from the crowd. If you are looking for technology that works for you from people who work alongside you with insight and a common sense of purpose, please get in touch with us and discover how we support your business with innovative technology. [CD] CarDealerMag.co.uk | 93

DRIVE MORE BUSINESS Becoming an RAC Approved Dealer means you have access to the power of one of the UKâ&#x20AC;&#x2122;s most respected motoring brands. With over 8.2 million members, Approved Dealer status can help drive them to your forecourt. Call us today and benefit from RAC Approved status.

0330 100 3807

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

94 | CarDealerMag.co.uk

Focus on. RAC Approved Dealer Network

RAC to add more than 100 Approved Dealers in 2018 RAC

T: 0330 100 3807

W: rac.co.uk/getapproved

ore than 100 new Approved Dealers are being sought by the RAC during 2018, increasing from the current 318 to a target of 427. RAC Approved Dealers – which range from small independents to major car supermarkets – are the highest echelon of the motoring organisation’s dealer structure, and exclusively deliver the RAC BuySure used car proposition that is designed to fully meet consumer expectations of the RAC brand. Sean Kent, pictured below, sales director at the RAC Dealer Network, said: ‘RAC BuySure sets very high standards and being part of the scheme does mean additional work for dealers. ‘However, the impact is considerable, with the average customer travelling more than 35 miles.’ Research shows that 80 per cent of used car buyers surveyed who purchased a car from an RAC Approved Dealer said that RAC BuySure gave them more confidence, while 76 per cent of used car buyers surveyed who purchased a car from an RAC Approved Dealer added that their affiliation to the RAC positively impacted on their decision to buy a car from them. Sean said: ‘Essentially, the dealers with which we work are already great dealers. ‘What we do is allow them to use the RAC brand to underline that fact, to provide the most credible third-party approval available to any independent. ‘We believe that becoming part of the RAC Dealer Network has huge appeal for dealers and their customers. ‘If you believe you are the kind of high-quality used car retailer who could meet our standards, we’d be very pleased to hear from you.’

What dealers say ‘We have been an RAC Approved Dealer for just a little over 12 months and have enjoyed our best ever year as a result.’ Keith Squire, director, Autolink Vehicle Solutions

What is an RAC Approved Dealer? • RAC Approved Dealers are the only dealers that offer RAC BuySure. This includes: • Vehicles prepared to the RAC 82-point standard. • A minimum three-month warranty term provided by the dealer. • 12-month complimentary roadside, recovery and home breakdown cover. • Vehicle preparation standards are audited six times a year to ensure they are meeting RAC standards. • The dealer has permission to advertise themselves as an RAC Approved Dealer and is allowed extensive use of the RAC brand – including free point-of-sale material. • Preferential listing on the RAC Cars website ‘Not only has RAC BuySure made selling cars easier for us, we have also been able to sell more cars.’ Anthony Betts, Anthony Betts Motor Group

and access to The Engine – our brand new marketing and support portal. • Our leading warranty product provides up to 36-month terms at silver, gold, platinum, and platinum plus levels. • A comprehensive range of RAC products to drive profits includes breakdown, GAP insurance, tyre and alloy, SMART and service plans. • Training and support is available from our nationwide team. • Approved Dealers have to comply with the Chartered Trading Standards Approved Used Car Vehicle Code – the first, and only, used vehicle code approved by CTSI. ‘The support that we receive is fantastic, whether it be regular training or small changes in the scope of cover to benefit our customers.’ Andy Coulthurst, Trade Centre Wales and UK

Do you want to become an RAC Approved Dealer? For more details call 0330 100 3807, e-mail dealernetwork@rac.co.uk or visit rac.co.uk/getapproved CarDealerMag.co.uk | 95

Want the right insurance cover at a great price? As part of the Motor Trade Insurance, we can offer…

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96 | 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.

Focus on. Aston Scott

One size doesn’t fit all when it comes to motor trade insurance ASTON SCOTT

W: astonscott.com/motortrade T: 03300 085045

s a motor trade professional, you will probably be very keen to efficiently and effectively manage your cost base. That will typically include your motor trader’s insurance. However, it might be important not to assume that the lowest-cost cover you can find will be suitable. That’s because motor trader’s insurance may have significant variations from one policy to another. Just as one motor trader’s business may be significantly different to another, the same might typically be the case with this type of insurance cover. You may find that with these policies, one size doesn’t fit all. Here, Jem Emirali from motor trade insurance specialists Aston Scott, explains some aspects that may help you buy appropriate motor trader’s insurance for your business. Jem has worked in the insurance industry for many years as a motor trade specialist, and has attained the Certificate in Insurance from the Chartered Insurance Institute (meaning he definitely knows his stuff ! ). He particularly specialises in providing high-quality customer care, and is experienced in helping clients find the most appropriate insurance solutions at competitive prices. Avoid paying for cover that you don’t actually need Some policies may bring with them types of cover that are simply not applicable to your specific business circumstances. For example, a policy might contain cover for you or your colleagues driving your customers’ vehicles while roadtesting them after work. However, if your business is largely retailoriented, it might be far more pertinent for you to have extensive cover for customers driving your vehicles as demonstrators etc. If that is an optional extra cover, then you might find yourself in the position of having

cover you don’t need while being asked to pay extra for the cover you do require. Business interruption insurance Not all policies offer this type of cover. It essentially relates to a situation where you are unable to access your business premises due to a problem arising from an insured peril. An illustration might be where a fire on your premises meant it could not be used pending repairs. If a policy doesn’t offer this, then you might feel it is not a good match to your expectations, irrespective of its pricing. Premises cover Policies offering motor trader’s insurance might typically include what is generically called ‘premises cover’ but the definition of that may vary. For example, some premises cover might: • Include burglary but exclude vandalism; • Have extensive flooding exclusions that might be a major problem if you’re located in an area known as high-risk in that respect. Public liability Any responsible business will wish to ensure that it has appropriate cover against the potentially large exposures arising from public liability risks. These levels may vary by policy and it is important to be clear that the cover levels are adequate – particularly for larger establishments.

Defective workmanship Not all policies offer this – or not as standard. It’s important because if a customer sues you for compensation for damages as a result of work you’ve undertaken (or sometimes failed to undertake), the sums awarded against you might be high. This is a very real risk and having protection against it might be advisable. Summary The above has only touched on a few very basic points but the underlying message is clear: selecting motor trader’s insurance based upon price alone, assuming that all policies are ‘more or less the same’ can be risky and might prove to be something that will be regretted in the context of a future claim. Matching the nature and structure of your business and the risks it faces, to an appropriate policy, might be a preferable approach. Motor trader insurance from Aston Scott Aston Scott is one of the largest independent motor trade brokers in the country. We have delegated authority with a number of insurers, giving us the ability to potentially provide motor trade policy insurance cover that is as unique as your motor trade business. We have a dedicated team of account handlers and no call centre, so you can feel confident you will get a personalised service. Contact us today on 03300 085045 to find out more. CarDealerMag.co.uk | 97

Audi A3

Audi TT

Ford Fiesta

Do you use video to sell more cars? · Increase awareness and engage with customers · Personalised with your logo and contact details · Bring your used car listings to life with professional videos · Ideal for social media and marketing Car buyers are spending more time watching car videos, whether they’re in the market or just browsing. Research has shown that 42 per cent of consumers are watching videos for up to five minutes every day**. OnCue Communications has an archive of most mainstream models filmed in HD format, and these are packaged into perfectly sized videos for both new and used car dealers. Footage includes on-road driving, static locations and interior shots. These can be branded with your logo and contact details.

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**Source: AOL 98 | CarDealerMag.co.uk

Skoda Yeti

Toyota GT86

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Peugeot 3008

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CarDealerMag.co.uk | 99

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

Flexible working: where do we stand?

Q A

One of our employees is on maternity leave. She has contacted me with regard to a flexible working request. What should we do? Every employee who has 26 weeks of continuous service has a statutory right to make a request for flexible working. The employee does not need to have childcare or family responsibilities to be able to make this request and the request could be permanent or for a fixed period of time. Most requests are in relation to childcare, travel time or work-life balance. Only one request in any 12-month period is permitted. Your employee needs to put the request in writing and state the date of the request and confirm whether any previous applications have been made. It should state the change the employee is seeking and the date from which they would like the change to take effect. It should also specify any changes to their working conditions and how these may affect the business. If you receive such a request, you should arrange a meeting to discuss it – ideally, as soon

JOIN CAR DEALER CLUB AND GET ALL THESE BENEFITS WORTH £1,000s FOR JUST £49.99 100 | CarDealerMag.co.uk

as possible. You then have three months to consider the request and make a decision. You can refuse the request but there must be a sound business reason. By law, it is required that the request is processed within three months. This includes any appeals. A refusal must be for one of these reasons: • the burden of additional costs • an inability to reorganise work among existing staff • an inability to recruit additional staff • a detrimental impact on quality • a detrimental impact on performance • a detrimental effect on the ability to meet customer demand • insufficient work for the periods the employee proposes to work • planned structural changes to the business Employees are able to complain to an employment tribunal if the employer • did not handle the request in a reasonable manner • wrongly treated the application as withdrawn

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.

• dismissed or treated an employee poorly because of their flexible working request (eg, refused a promotion or pay rise) • rejected an application based on incorrect facts An employee will need to make the complaint to the tribunal within three months of • hearing their employer’s decision • hearing their request was treated as withdrawn • the date the employer should have responded to their request (but failed to do so) Employees cannot complain to a tribunal just because their request was rejected. Because the request can take up to three months to consider, if the employee is due to return to work before this date, the employee will need to work as normal until the application is dealt with. If you have an employee on maternity leave, you can advise them of their right to make a request and explain that it can take up to three months to process. This should ensure requests are received before any return to work.

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.

New rules on card charges

I have read that we can no longer pass on to the customer all the card surcharges we have to pay – this can’t be right, surely? HP, Dagenham You read right – it is no longer legal for any card surcharges to be imposed on the buyer. Furthermore, you cannot impose a charge on those who opt to pay by American Express, PayPal, Apple Pay, etc. If you do, the customer can expect you to pay back the extra fee that they paid. Enforcement of the law is by trading standards. You can, of course, refuse to take card payments, or cap how much you will take on a card. However, you need to make this clear before the customer comes to your site, and you will need to refer to it in your advertising as well as on site. The other alternative would be to increase your prices but you can only do this ‘across the board’ and you mustn’t reduce the price for cash payments or bank transfers. If you are going to impose an ‘admin fee’ this must also be ‘across the board’.

WANT TO UPGRADE?

WHY I LOVE LAWGISTICS

Going elsewhere to cut costs proved a false economy, so it was a rapid return for Rachel RACHEL Dickens is a director at Motortune Ltd in Marton, near Blackpool. The garage is a BMW specialist dealing mainly in servicing, although it will service vehicles of any make. Motortune has never had to use Lawgistics regarding any legal action or court cases, but the advice it has given the garage over the years has been ‘invaluable’. Dickens told us: ‘It’s only from an advice point of view that I have used them, but knowing that I have them in my corner fills me with confidence. Everyone is so friendly and the level of service that they provide is unrivalled.’ Dickens said she liked to use Lawgistics for reassurance that she was doing the right thing. ‘Lawgistics provides the back-up that you require; sometimes all you need is a reliable second opinion to tell you that what you are doing is correct. I have never got that deeply involved in any particular case because nine times out of 10 we sort it ourselves, but the advice and security of speaking to someone with bang up-

to-date knowledge is invaluable.’ Dickens hasn’t always used Lawgistics, but she learnt the hard way by trying to find a better service elsewhere. ‘When we bought the garage five years ago, the previous owner was a customer of Lawgistics,’ she said. ‘For the first couple of years we kept up the membership but then decided to move to a different business for a cheaper cost. ‘But when I needed some help, their service was useless. ‘When it came to renewing the membership, I decided to go back to Lawgistics. And, yes, it probably was more expensive, but the fact that Lawgistics is there 24/7 and phones me back immediately is something that is invaluable.’ Finally she added: ‘They are so friendly and tell you exactly what to do and what not to do. I would recommend them to anyone.’

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

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Want to create your own mobile app but don’t know where to start? Then work with the app development company that has created Car Dealer Magazine’s successful apps. 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.

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

Dragon2000 CarDealerMag.co.uk | 101

The monthly magazine for garage professionals For advertising and subscription inquiries contact Jon Hickey Sales manager j.hickey@blackballmedia.co.uk Michelle Searle Account manager michelle@blackballmedia.co.uk

Or call 023 9252 2434

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102 | CarDealerMag.co.uk

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Market Insight.

...in association with ASE-global.com

‘Consumer preferences will shift from diesel to petrol and alternativelyfuelled vehicles...’

Motor retail stocks recover... but there are concerns for 2018 This year is likely to be challenging, with significant weakening of new car registrations, predicts Adam Cottam

ost motor retail share prices recovered in December. The UK economy seemed reasonably stable although there are still concerns over 2018’s prospects. Pendragon issued an update giving details on the steps it intends to take in order to shift its strategy in the coming year, with divestment in premium brands in tandem with investment in an executive to lead their used car division. PSA announced it was integrating Go Vauxhall into Peugeot Citroen Retail in the first major strategic move since it acquired GM/Opel. Share price performance December saw a recovery for most listed motor retail share prices, and the wider market saw a similar recovery with the FTSE 100 gaining considerably on November. The main indices closed much higher than the start of the year, which painted a picture of consistent growth for UK security prices. This is despite the challenging economic backdrop, which has been present for much of the year. Recent data suggested UK manufacturing was in good shape despite a slightly subdued December performance. Global business confidence was high, although British firms were slightly less bullish because of the uncertainty posed by Brexit. There are mixed views on the UK’s prospects into 2018, but growth somewhere

Share price movement from Jan 3 to Dec 29, 2017

Share price movement from Jan 3 to Nov 30, 2017

Pendragon

91.2%

83.2%

Vertu

116.1%

109.2%

Lookers

87.8%

83.4%

Inchcape

111.5%

106.3%

Cambria

101.7%

104.2%

Caffyns

79.0%

81.0%

Marshall

121.4%

116.7%

between 1.5 per cent and 1.8 per cent is expected which, given the political circumstances, doesn’t suggest the doom and gloom forecast by many in recent months. Looking at the UK motor industry’s prospects, it is likely to be a challenging 2018 with significant weakening of new car registrations, and lower consumer disposable income. Wage growth is expected to remain behind inflation at least in the short term, meaning households will have less to spend on new cars. PCP renewal cycles will continue to lengthen and political and media noise about diesels will shift consumer preferences from diesel to petrol and alternatively-fuelled vehicles.

Financial performance Pendragon followed up its October performance update with a strategy update, as we have said. This put some actions to the strategies mentioned in the October commentary. The business is going to reduce the number of premium-brand locations over the next three years and sell its US motor group. An advisor has already been appointed and consideration of around £100 million is expected for the US disposal. In fact, £100 million of capital is to be released through a mixture of disposal proceeds and investment not deployed in the short to medium term across the group. The recruitment of a senior executive to lead the used car division will take place and the share buyback programme Pendragon undertook throughout 2017 will also be resumed. Transaction activity In early January, PSA announced it was integrating manufacturer-owned Go Vauxhall into its Peugeot Citroen Retail Group. This was a big move for the sector, and cast more doubt over the future of parts of the Vauxhall network as PSA looked to make efficiencies in order to make the GM/Opel acquisition profitable. The shape and size of the Vauxhall network will be something to watch as we move through 2018.

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

Auctions.

Seat Leon Cupra’s double dose of window woe.

Long-termers: p112

Jardine and BCA sign Henstock new three-year deal Getting the best value REMARKETING

AUCTION STATIONS

deal for part-exchanges

CA has announced an exclusive three-year remarketing deal with Jardine, one of the UK’s largest automotive retailers. Jardine, trading as Lancaster, represents 22 different car, motorcycle and commercial vehicle brands at more than 70 locations nationwide. Around 20,000 vehicles – cars and LCVs – will be remarketed annually under the new agreement, which starts this month. Vehicles from Jardine Motors Group will be sold at BCA Blackbushe, Bedford, London and Manchester every week, with all vehicles available to BCA Live Online buyers. All vehicles will be pre-sale prepared and eligible vehicles will be offered under the BCA Assured scheme. Jardine uses BCA Dealer Pro across the retail group, meaning every incoming partexchange vehicle is appraised and valued using BCA’s cloud-based service. All non-retail part-exchange cars will be consigned to BCA for immediate remarketing, while BCA runs the J2J internal sales platform that offers visibility of part-exchange vehicles across the retail group, meaning more cars are identified

T and retained for profitable retail sales. Richard Hollis, head of used car development at Jardine Motors Group, said: ‘BCA is the acknowledged market leader and offers an innovative and joined-up approach to remarketing. Most importantly to Jardine, we work together as partners to ensure we maintain a programme that delivers market-leading results throughout the year.’ BCA’s major account manager, Suzanne Spencer, added: ‘This deal will deliver a substantial range of attractive stock for buyers at BCA nationwide. ‘Jardine Motors offer a superb selection of vehicles and we are delighted that BCA has been awarded an exclusive remarketing partnership with the group.’

Historic car market ‘can only go forward’ INTERNATIONAL car auctioneers Coys due to its global attraction. Now more predict that 2018 will see new participants established than ever as a lifestyle choice in the classic car market and that the for investors and collectors worldwide and outlook is optimistic. out-performing virtually all other known Chris Routledge, CEO at the auction investments over the last decade, the house, said: ‘As we enter 2018 and outlook for this marketplace is optimistic some of the uncertainties of the last 24 and established. There is a new maturity months have begun to settle down and in the historic car market which gives it seek direction, the historic motor car international credibility which can now Car dealer new stable stripand adresilient 11-17 5/12/17 market has remained only move10:43 forward.’Page 1

The Fleet Auction Group Professional Vehicle Auctions for Professional Vendors & Buyers

he first quarter of the year is a busy period for dealers who see an increase in used car retail activity ahead of the March plate change. It’s essential to maximise sales by ensuring stock is ready to retail. Dealers are also planning for the increase in volume that will arise in March and the next few weeks create an opportunity to clear the decks of any stock that isn’t selling. While there will be plenty of demand for the best, retail-quality cars, vehicles that are in poorer condition, lower spec or higher mileage must be valued to sell in line with market sentiment. BCA’s Dealer Pro tool can help here, bringing clarity and objectivity to the appraisal and valuation process. Dealer Pro also improves the customer’s experience, increasing confidence with a professional appraisal process that they can see and understand, and giving credibility to the partexchange value they are quoted. Incoming part-exchange vehicles can be processed fluidly and allocated to retail or trade as appropriate. It also integrates with other dealer systems, such as lead management and provenance systems, to improve overall dealer efficiency, and enables all data captured to be used in any sales channel. With cars entered into a dealer-to-dealer stock system, the application ensures that every possible retail profit opportunity from each part-exchange vehicle is explored. Should another dealership within the group spot a car that has been uploaded to Dealer Pro, it can get in touch and offer a deal – all in real time. All stock appraised on the system can be revalued at the press of a button, using real-time, condition-adjusted market values based on industry-leading data. Customers who step onto the forecourt are ready to do a deal, and it’s important for dealers to be able to offer a quick and efficient valuation process on a part-exchange vehicle. This is where BCA Dealer Pro delivers real benefits.

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

Excellent variety of weekly stock from premium sources Regular Top Car Sales, Motorcycles & Motorhomes Fixed cost buyers premium User friendly website & stock locator. On-line bidding Fleet Car Sales every Tuesday at 1pm & Thursday at 10am Van sales every Wednesday at 10:30am Wheelchair Accessible Vehicles fortnightly, Wednesdays at 10am Truck, Trailer & Plant fortnightly, Wednesdays at 12noon Collection of vehicles 24 hours a day, 7 days a week Purpose built 12 acre auction complex Enclosed and heated auction halls and viewing area The UK’s finest auction restaurant Central UK location

www.fleetauctiongroup.com 104 | CarDealerMag.co.uk

Call 01530 833535 or go online for account application NAMA Vehicle Grading

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

Steady demand, well-balanced supply and a richer mix of cars Seasonal market trends and the shorter trading period saw some pressure on values for poorly presented vehicles, says Stuart Pearson, managing director of BCA’s UK remarketing operation

CA’s Pulse Report shows that average used car values improved by £465 during December, with the headline figure climbing to £9,868 – a record value for the fourth month running. Year-on-year, the headline figure was up by £1,527, equivalent to a substantial 18.3 per cent improvement – a result reflecting both the steady demand, well-balanced supply and the richer mix of cars available at BCA over the past 12 months. Buyer demand remained strong for good-quality stock, while seasonal market trends and the shorter trading period saw some pressure on values for poorly presented vehicles. Average values for fleet/lease vehicles remained strong, while dealer part-exchange values reached record levels, reflecting the longerterm trend BCA has been reporting throughout

2017. Nearly-new vehicle values also improved during December. December is the shortest trading month of the year and both the market-sector mix and model mix tend to change quite significantly. Fleet and lease stock is typically in more limited supply, whilst dealers continue to sell part-exchange vehicles as a result of their ongoing retail activity. Buyer demand was consistent throughout the month and carried on to BCA’s digital platforms over the festive season. Average values remain at near-record levels in the fleet and lease sector, with the December figure of £10,604 representing a small decline (0.3 per cent) against November. Retained value against original MRP (Manufacturer’s Retail Price) was 41.85 per cent

Headline average value of a used car:

£9,868

in December. Year-on-year values were up by £939 (9.7 per cent), as both average age and mileage continued to reduce. Average dealer part-exchange values climbed by £71 (1.5 per cent) to reach a new record level of £4,773 in December. Once again, looking at the longer trend, values have climbed steadily during 2017, reflecting the substantial levels of business BCA has won and retained in this sector. Year-on-year values were ahead by £278, equivalent to a 6.1 per cent uplift. Values for nearly-new vehicle values rose in December, from £18,445 to 19,033, an increase of £588 and the second highest average value recorded in this sector by BCA during 2017. Model mix has a significant effect in this very low-volume sector, with brandspecific winners and losers.

Dealer partexchange values:

£4,773

CarDealerMag.co.uk | 105

A Global View.

...in association with

Identifying the gender divide in customer experiences David Green, CDK Global vice-president for sales and marketing, discusses the language behind a gender divide in the customer experience and reveals how dealers can help build trust with women

ecent CDK Global research reveals that many women feel they are at a disadvantage when looking to buy a car, because of their gender. For the study, data analysts at CDK Global fed 64,000 reviews into their natural language processing tool. They found that 43 per cent of women didn’t trust the automotive industry, and often described their experiences very differently to men. Customer reviews can provide a valuable insight into understanding what people like and dislike about the dealership experience. The latest discovery highlighted that words including ‘stressed’, ‘overwhelmed’, ‘taken advantage’ and ‘panic’ were among the top 10 words used by women in the most negative reviews of the indealership experience, with many saying they felt ‘unsure’ or were made to feel ‘stupid’. It’s already fairly well known that generally women are wary of dealerships. However, many dealers simply aren’t aware of the scale of the issue. Women make up a large percentage of the buying population and influence even more car-buying decisions, so it is important for dealers to make sure they’re providing women with the right customer experience. Analysing the data The reviews analysed in the study were separated

by sales and service and then further separated by five-star and one- and two-star reviews. The words used most commonly by both men and women show that overall most people want the same thing: ‘fair’ treatment and ‘helpful’ staff that lead them to ultimately leave feeling ‘happy’. The results also highlight significant differences in what influences the experience for men and women at the dealership. In their reviews, men focused much more on the product itself, while women focused more on their interactions with the staff, suggesting that many dealerships need to re-evaluate how they provide customer service and market to women. For women, ‘compassion’ and ‘compassionate’ were among the most frequently used words in positive sales reviews, often with other adjectives such as ‘kind’ and ‘caring’. In both sales and service, women noted that ‘smiles’ from the staff – even the ones they weren’t working with – helped to create a positive experience. To help guide dealerships, CDK Global’s experts have used the study findings to create the following key advice for creating a better indealership experience for women: • Make eye contact and smile – this helps to build trust and lasting relationships • Find out what is important to them for

‘Women make up a large percentage of the buying population and influence even more car-buying decisions’ their next car – listening and understanding is highlighted in positive reviews • Empower with knowledge – fully explaining issues can alleviate any concerns and put the customer at ease • Provide regular updates on service work – many positive reviews feature the word ‘continuously’ in relation to their communications with the dealership • Provide a welcoming dealership environment – the details matter: Clean toilets Wi-fi in waiting area Children’s area Complimentary drinks Variety of reading material • Create targeted advertising campaigns – differentiate messaging for women CDK Global’s researchers noted that many dealerships were already getting it right — sometimes to the surprise and delight of their female customers. However, the results still show that there is a real opportunity for dealerships to stand out as a business that supports female customers.

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. 106 | CarDealerMag.co.uk

Real Deals.

...in association with

Why this Octavia VRS was too good to ignore

The car is nicely subtle about being a sporty car from a visual perspective

ADAM WELLER checks out a ‘sleeper’ car that’s spacious, sporty and available for a very reasonable price tag

ere at Car Dealer, sporty takes on already stellar commuter cars are popular, both in our minds and in our car park. For this writer, however, there is one badge that deserves a lot more credit than it gets – VRS. Skoda’s transformation from Central European icon and Western European punchline to one of the most obvious buys in the country has been well documented, but would they really be there if it weren’t for the early VRS Octavias and Fabias that showed off what Skoda could actually do? Well, yes, probably. As soon as the knowledgeable end of the consumer base realised that the words ‘Fabia’ and ‘Polo’ were more or less interchangeable, the company’s trajectory took a distinct upward turn. But with that said, the VRS models definitely played their part. Skodas look their best with the subtle bulges and larger alloys of the VRS range more often than not, and it was this car, the MK2 Skoda Octavia VRS, that proved beyond doubt that the VRS badge was serious business. Most reviews of this car focus on the TDi model, which is fair, but for us, the TFSI model takes the cake, eats it, and bakes another one

before the TDi gets home. Let’s look at that engine first. The 197bhp 2.0 turbo unit is a brilliant motor, transplanted directly from the MK5 Volkswagen Golf GTi, which fans of the iconic hot hatch know as ‘the one where VW remembered how to make a hot hatch’. As such, it immediately stakes a claim to some serious performance car bragging rights, and the pleasing six-speed manual gearbox adds to the stellar powertrain immensely. Fortunately, the satisfaction doesn’t stop once you close the bonnet. As with all VRS models, it is pleasingly subtle about being a sporty car from a visual perspective. It gives you a wink and a nudge with its slight spoiler, 17-inch alloys and slightly more muscular bumpers, rather than waving its arms and causing a scene. A solid percentage of the population won’t even notice that it’s not a normal Octavia, so jokes about crashing into a popular car parts seller shouldn’t be an issue. At 1400kg, the Octavia VRS is a little heftier than the Golf whose engine it borrows, but it is still a supremely pleasing driving experience. The steering is direct and the ESP system is most likely the product of a wizard. As a front wheel drive performance car, there are, of course, hints of understeer and even more subtle tickles of torquesteer now and then, with the ESP off. However, with ESP activated, the car is nothing short of sublime – managing to go slow and/or into the shrubbery is probably more of an achievement than making it go fast, such is its poise. But for all this ability and willingness to have

fun, the VRS has a large chunk of common sense in the mix too. If you’re more likely to be on the M27 than the B4501 in this car, it will happily ferry you along the motorway without complaint. Of course, one thing that the Octavia has over the Golf GTi and its rivals of the time is practicality. A 585-litre boot is more than any traditional hot hatch can muster, and will happily consume most things you can throw at it. Inside, the interior is spacious, and the car we’re featuring here has part-leather seats that are snug and comfortable. The car in question is for sale at Parkside Reading Limited for £3,495, which is a very good price for what you’re getting. With 76,000 miles on the clock, and a full service history present, it should have a lot of life left in it. The second-generation Octavia VRS is one of the ultimate ‘sleeper’ cars on the road today. It blends into commuter traffic seamlessly, but let it stretch its legs, and you have a stellar example of the VW-Audi Group’s mid-2000s hot hatch hot streak on your hands. As much as we like to feature quirky cars in Real Deals, this car was simply too good to be left out.

Skoda’s Octavia VRS delivers a supremely pleasing driving experience

CarDealerMag.co.uk | 107

Data file.

James Litton

TRADER TALES

Whiplash, a cracking read for motor industry people

particular book so touched the owner of the business I work for, that he now issues a copy to all new starters. The Customer Rules by Lee Cockerell – a former bigwig at Disney – outlines 39 ways of delivering exceptional customer service. As well as containing some practical tips, the book sets the expectations of all new starters that our business is rooted in customer service. Until recently, I had only read one business book which I recommend to people: To Sell is Human by Daniel H Pink. Pink is a master at understanding human behaviour and the contents make fascinating reading for anyone making their way in a sales environment. As good a book as this is, it is really an observation on human behaviour and is just a superbly written collection of anecdotes, interviews and thoughts that could perhaps be found elsewhere. This is not the case with Whiplash by Joi Ito and Jeff Howe. Ito is the head of The Media Lab, a department at the Massachusetts Institute of Technology (MIT), a hub of creative and super-intelligent people. The sub-heading is ‘How to Survive our Faster Future’ and the book offers nine principles of how to think in today’s connected world. Without spoiling the main event, I want to pick three of the concepts and apply them to the motor industry to whet your appetite to buy the book for yourself. The chapter ‘Compasses Over Maps’ highlights the need to avoid defining and restricting processes and operations to achieve a goal. Think about this from a new car target perspective. It is easy to understand the frustration of manufacturers with some dealers who are not prepared to embark on new strategies to generate more new car sales. That does not make it a fait accompli that the manufacturer is right and the dealer is wrong, but as a dealer, you need ammunition in terms of endeavour to combat the accusation of lack of effort or focus. ‘Practice Over Theory’ is another chapter which resonates with me. The motor industry is awash with people who tell you how it should be done, yet in the best case did it years ago, or in the worst case have never done it. Having bashed finance retention in my last article, it seems fruitless to do so again, but you get my point. Finally, I think the chapter ‘Emergence Over Authority’ is perhaps the one that’s most applicable to the motor industry. Not only are we faced with daily challenges relating to the future of alternative-fuel technology, there is a real threat from ride or ownership sharing which could completely undermine the industry as it operates today.

‘The motor industry is awash with people who tell you how it should be done.’

James Litton is general manager – director of Volvo Cars Poole. He always has something to say about the industry he loves. 108 | CarDealerMag.co.uk

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This sale was a shoo-in... if only we had the right size!

e were running a promotion a few years ago. With every new car purchased from our dealership, we’d give a new pair of running trainers to the owner. It was an initiative by the powersthat-be to tie our cars into a more ‘active’ lifestyle. Of course, myself and a few of my colleagues saw the shoes in question – expensive, top-quality running shoes – and thought that the company wouldn’t miss a few pairs. Come the next day, the dealership looked like it was entering that year’s London Marathon. Did the promotion work? Surprisingly, yes. We had an increase in the number of customers through the door, all looking to get their hands on a car – and the trainers that were on offer, too. Before we knew it, we were getting into a serious footwear shortage. As this was a limited offer, we wouldn’t be getting any refreshed stock – once they were gone, they were gone. One bright morning, a gentleman walked into the dealership with purpose. You can spot those who want to buy a car straight off the bat – there’s no tyre-prodding or button-pressing to be seen. Waltzing up to the desk, he said right away which car he wanted – one of our most expensive models – with his only stipulation being that it came with a pair of the running shoes. He told me his size – 10½ – and I immediately said that as we had limited stock, there was a chance that there wouldn’t be any shoes for him. However, this wasn’t met with the happiest of looks – and the customer said he wouldn’t sign on the dotted line without them. I headed to the storeroom where we’d been keeping the shoes and, as I expected, we were fresh out of those sized 10½. Eager for the sale, I upturned a number of boxes. Then I looked down at my own feet, and saw my slightly beaten-up trainers – in exactly the right size. Quick as a flash, I whipped them off and headed to the workshop. A quick spray of WD40 (you’d be surprised how quickly it gets rid of mud from leather) and a wipe and they looked – almost – as good as new. I’d been wearing them for a few weeks – but my punter didn’t need to know that, did he? I packaged them in a box, and headed out to the showroom in a pair of steel toecapped boots I kept in the office. As the chap signed the car off, I happily handed him his ‘brand new’ shoes – fully aware that had he taken them out of the box, they’d still have been warm.

‘You can spot those who want to buy a car straight off the bat.’

Tell us your story

Have you something to confess? Email our head of editorial (you can find her details on page three) or post it on our forum – cardealermagazine.co.uk/forum CarDealerMag.co.uk | 109

Key Notes.

...in association with Traka

Time to make some changes A mix of relatively small improvements will help you weather the difficult times ahead, says Paul Smith

fter a six-year straight run of year-on-year growth, it seems that the PCP-fuelled new car sales juggernaut finally slowed down in the middle of 2017. November’s numbers from the Society of Motor Manufacturers and Traders provided the hard evidence – with the figures for the full year, covered in this issue of Car Dealer, confirming the situation. The biggest loser in 2017 was diesel vehicles. November’s diesel sales were more than 30 per cent down on the same time as the year before and 16 per cent down for the year to date. However, diesel’s loss was petrol’s gain: petrol vehicle sales were up five per cent in November, while alternatively-fuelled vehicles climbed dramatically during 2017 to command a 4.7 per cent UK new car market share. So, what’s going on at the macro-economic level and are we heading into a new downturn? The pundits indicate it’s too early to tell but there’s no doubt that the uncertainty caused by Brexit, combined with wages failing to keep pace with the rising cost of living, are together causing consumers to delay the purchase of big-ticket items such as new cars. Those not well enough exposed to the nonprestige and used vehicle markets are suffering. You only have to take a look at Pendragon’s profit warning (£60 million pre-tax profit down from the predicted £75 million) in October 2017. This announcement was followed in December by what looked like a pre-emptive strike by the

leading UK dealership group, Sytner, which purchased car supermarket group The Car People as part of a strategic rebalancing of its portfolio – moving away from heavy dependence on new prestige sales, which it clearly sees as more vulnerable than approved used and large-volume mainstream brands. So, what’s the formula for braving the imminent storm and how quickly can dealer principals implement necessary changes? The key with all change planning is to look for a mix of relatively small improvements, all built around the concept of serving the customer better. One option is to bring in and promote a service plan for new and used cars. The great thing about signing people up to service plans is that you have reliable incremental monthly fees coming in to ease cashflow, while also increasing customer loyalty. Make sure you can take servicing bookings online – 25 per cent of all services are booked in between 6pm and 9pm. The same goes for test drives. Make sure too that these can be booked online and that make and model can be easily stipulated – ideally from a drop-down menu. In a perfect world, you should be able to book a customer in for a service within 10 days of them requesting a slot, and you should really be able to halve that for test-drive booking requests. Integrate your CRM/marketing automation systems with your DMS to enable you to surround the customer with reminders, incentives and

information designed to keep them coming back. So, whether you are putting out a special offer for that winter health check for customers who bought a new car from you during the past 12 months, or suggesting an early service booking, these can all be based on accurate opted-in customer data, ideally augmented by on-board diagnostics data, which can be put to work to tell your customers what parts are near the end of their life and should be replaced. You could also look to use services such as Cox Automotive’s Stock Insight Solution to keep tabs on your stock’s pricing – and how about improving the online presentation of stock through video? The key is to keep new and used stock moving in and out of your showroom and/ or service centre rapidly to make more profit. The faster you can move stock through, the less you will stockpile. You will see cashflow improvements and higher CSI scores. There are lots of moving parts that can work together to turn small, but nevertheless worrying, losses into month-on-month profits, which will see you through even the deepest of downturns.

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

15/12/2016 09:56

Long-termers. LATEST FROM THE FLEET...

Volvo V90 The luxury estate has been set up so it can be started using a mobile – perfect for winter mornings. by JAMES BAGGOTT @CarDealerEd

’m sitting inside having a coffee on an incredibly cold December morning. Outside, my Volvo is covered in thick ice and there would have been a time I’d have been forced to reboil the kettle and tackle the windows with some hot water – much to the disgust of experts everywhere. However, no longer do I need to risk cracking windscreens by thawing them out with hot water, as thankfully the V90 has a neat trick up its sleeve. Following a visit to the local dealer, it’s now been set up with the Volvo On Call app that lets me start the engine from anywhere with a phone signal to pre-warm the car. I can even open the doors, flash the lights or beep the horn, or find out how much fuel it has left. It uses a 4G connection in the car and your phone to talk to each other – and the prewarming has come in very handy indeed. It’s also a very neat trick to impress friends and family with. I popped along to Snows Volvo in Winchester to have the work carried out. There the SIM card was fitted and the On Call app set up. It wasn’t the smoothest process, as the connection took some time to get going, but since it’s been up and running it’s worked well. The SIM card also gives the car internet connectivity so passengers can use it as a wi-fi hotspot, and the car can access the internet for Spotify and other internet-based apps on the large touchscreen. It means there are now three different ways to listen to Spotify in the car – via the car’s streaming, Bluetooth or Apple CarPlay. Some would say that’s overkill, but it certainly beats a tape deck. The online functionality has been a welcome boost, but the system has not been without its problems. The built-in sat nav is woeful – nearly to the point of being unusable. On a recent trip to London it sent me down a dead-end street that it thought could be used as a cut through. It couldn’t, and had clearly been blocked up many, many years ago. Then a few moments later it advised me to turn left at a noleft-turn traffic light. I also can’t understand why the map displays

James demonstrates his prowess at washer fluid bottle refilling – shame about the sat nav...

THE KNOWLEDGE Model: Volvo V90 D4 AWD Cross Country Price: £46,755 Engine: 2.0-litre turbo diesel Power: 190bhp Torque: 400Nm Max speed: 130mph 0-60mph: 8.5 seconds MPG (combined): 54.3 Emissions: 138g/km Mileage to date: 6,065 THIS MONTH’S HIGHLIGHT: Warming up the interior and deicing the windows remotely. detail for just half the screen – the top half is blue sky. This is a completely pointless use of screen real estate when it should be showing you what’s coming up further down the road. It’s all very frustrating and means I usually resort to Google Maps – something you really don’t want when your car has built-in navigation. That said, I’m still mostly enjoying my time with the V90. The 2.0-litre engine is hardly the punchiest, but it’s quick enough and I find it

incredibly relaxing to drive, especially over long distances. I also love the space inside. Rear-seat passengers get acres of legroom, while up front the uncluttered layout and comfy seats are a real joy. What’s more, the fact there are two pop-up kids booster seats in the back is brilliant – my daughter absolutely loves them. It’s a very clever Swedish touch. I’ve been using the cavernous boot for all manner of activities too. From business trips with lots of luggage to trips to the dump, the Volvo’s monstrous boot seems to swallow the lot. Estates offer so much practicality, and that’s never more evident than when you need to carry something in the boot. I’ve also carried out some basic maintenance – filling up the washer fluid bottle so I can see out of the windscreen again. I love the fact the fluid seeps out of the wiper blade arms and doesn’t spray out of two holes in the bonnet. Next up for the Volvo is a trip to the Alps. I’m currently trying to arrange some winter tyres, snow chains and a roof rack for her, which will need a second trip to the local dealer. I’m looking forward to being rather comfy indeed for the long drive there... CarDealerMag.co.uk | 111

Long-termers. LATEST FROM THE FLEET...

Seat Leon Cupra Our hot hatch seems to be plagued with bad luck as it suffers two shattering experiences. by DAVE BROWN @CarDealerDave

ave, you’re in the Cupra.’ Five (possibly six) words from the chap who manages our fleet of long-term loan cars that cheered me right up in the middle of a busy spell at work recently. With a weekend trip to London planned and a few other journeys on the cards in the run-up to Christmas, the snazzy-looking Seat would make an ideal companion I thought to myself as I stuffed the key into my pocket. Happy days. My first excursion after being allocated the car – popular among our writers because of its sharp styling and great levels of performance and practicality – was an evening trip to one of those out-of-town retail parks for a spot of seasonal shopping. However, purchases acquired, I returned to the car to find a lengthy hairline crack had appeared along the bottom section of the windscreen. This was most definitely annoying – and there was no apparent explanation. The following morning meant a few phone calls and a replacement ’screen later that day. A tiny stone flying up from the road would have been the culprit, said Joseph, the chap fitting the new glass (pictured above left), as he showed me the barely visible point of impact. Little did I realise that worse was to come… Saturday lunchtime arrived, and having been granted custody of KU67 TNX for the weekend, I was looking forward to my aforementioned trip to the Smoke. Approaching the car to make the trip, though, there was quite a shock. The front passenger window was completely smashed. It was in

THE KNOWLEDGE Model: Seat Leon Cupra 300 Price (as tested): £32,025 Engine: 2.0-litre turbocharged petrol Power: 296bhp Torque: 380Nm Max speed: 155mph 0-60mph: 5.5 seconds MPG (combined): 40.9 Emissions: 158g/km Mileage (to date): 4,373 THIS MONTH’S LOWLIGHT Two non-fault breakages – we’re just glad they weren’t mirrors that got smashed... 112 | CarDealerMag.co.uk

The Cupra is taken away for repair after the second of its glass-related mishaps

absolute smithereens, with fragments of glass inside the car and scattered on the road. Here’s where it gets a bit weird. Naturally, I assumed our poor little Cupra had been targeted by vandals or the subject of an attempted theft… but as I was diligently sweeping up bits of broken glass to prevent fellow road-users getting a puncture, I was approached by one of my neighbours who lives opposite the parking spot. ‘It wasn’t vandalism,’ she told me. ‘We more or less watched it happen.’ I was intrigued. What was the explanation? Well, it seems the window had ‘started to crack and craze’ as the sun came up. It seemed a bit unlikely but my neighbour was adamant. Well, I thought, there had been a very heavy frost the night before, which would have come under the sudden glare of lots of direct sunlight as dawn broke… Anyway, more phone calls were in order, the car was transferred to a secure site and covered with tarpaulin to keep out the worst of the wintry weather and it was collected by the AA the following Monday for the necessary repair to be carried out. I felt dreadful, even though I wasn’t to blame for either incident. I’d been in possession of the car for less than a week and already it had found itself in need of two major fixes. Seat has very kindly told us it’ll be returned as soon as possible, which is very understanding – and we’re looking forward to having it back. After all, it’s a great car that has really carved

out a niche for itself in a very busy hot hatch market, where there is a surfeit of models available for around £30,000. The base price for the Seat Leon Cupra is actually £29,600 (recently reduced by around £500), which is extremely competitive, although with a few extras such as Monsoon Grey metallic paint and black bucket seats, ‘our’ car comes in at £32,025. It was a real shame it had a week of woe, but it seems like it won’t be too long before we’ll be back behind the wheel.

OTHER CARS WE’RE DRIVING

Volkswagen Amarok Mileage: 1,618 The Amarok is a true adventure car and there was plenty of scope for that over the Christmas period, with lots of snow on the roads and the four-wheel drive a welcome feature.

Land Rover Discovery Snow joke! This SUV proved to be a real winter warmer, thanks to the heated steering wheel. by REBECCA CHAPLIN @believebecca

hen the temperature starts dropping and snow starts settling, there’s no better place to be on the road than behind the wheel of an SUV – particularly if that wheel is heated. Having picked up the keys for this Discovery Sport back in June, I’d forgotten that I had this wonderful feature literally at my fingertips. It was on my drive home for Christmas that I spotted it, and the realisation of what that steering wheel symbol with wavy lines meant was bliss. Being based close to the sea on the south coast, we don’t get many opportunities to drive in the snow. However, my home town in Buckinghamshire has a much better chance of a flurry of the white stuff, and in December it really came down. That, as you can see from the main photo, wasn’t when I was there, though. Living at the top of a steep hill – so big that they named the village after it – does mean having four-wheel drive available is handy, particularly as icy days can get a tad treacherous. While the Discovery Sport has all of the chunky looks of a tough off-roader, inside you’re in complete luxury. The aforementioned heated steering wheel is one of those things you never thought you needed – until you’re in a car without it on a freezing morning.

Driving home for Christmas... Thank goodness for heated steering wheels!

They’re not the only things that heat up, though, with heated seats fitted in the front as well. These can be adjusted through three different heat settings or three different cool ones. The latter haven’t been getting much use for a while… Although I was travelling home for Christmas alone, I managed to use every space available with the mass of goods I seemed to think I needed for the few days I would be back at my parents’ house. Presents were crammed around the car to avoid breakages, food was in the footwells, plus enough wine to inebriate a small

village, and outfits for every occasion. The great thing in situations such as these is the sensors on the boot and in the door handles, which mean no fumbling with keys – perfect when you’re carrying handfuls of presents to the car, as I was, and equally useful when you’re loading shopping, pets or children into the car. To open the boot, you can simply wave your foot under the rear of the car for completely hands-free entry, then push the button on the inside of the boot lid and it’ll close itself. Unlocking the doors on this car is just as easy. As long as you have the key on your person, simply pull the door handle and it’ll open. Locking them is just a case of tapping the indent on the door handle. Mind you, my success rate is about 60 per cent of the time…

THE KNOWLEDGE

Ford Edge

BMW M240i

Mileage: 8,990

Mileage: 1,342

It’s surprisingly lacking in height for such a big car and the lights have a shockingly poor reach, but we can’t help loving this mid-size crossover SUV for how nimble it is and how it commands the road.

Darren wasn’t convinced the BMW M240i would be totally adept at Christmas-present-lugging duties, but it has a decent boot for a small coupe – and two families-worth of gifts just about fitted!

Model: Discovery Sport Price: £56,765 Engine: 2.0-litre TD4 diesel Power: 177bhp Torque: 430Nm Max speed: 117mph 0-60mph: 8.4 seconds Emissions: 139g/km MPG: 53.3 Mileage: 15,233 THIS MONTH’S HIGHLIGHT: There’s nothing like driving in the snow! CarDealerMag.co.uk | 113

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

As car firms shift direction, is this the end of the industry as we know it?

he car industry is facing turbulent times. Sales are falling, customers are wrongly being turned off diesels, while new electric and hybrid technology is coming but not quite quickly enough. For those highly-paid business brains in car manufacturer boardrooms across the world, the stress headaches must be starting to get a little tiresome by now. If it’s not an emissions scandal to deal with, it’s a misguided death-to-diesel campaign by the government. The clouds surrounding the industry never seem to ease quite long enough for it to gather a head of steam again. It must be all very frustrating. It’s no wonder then that car firms have had enough and are quietly beginning to diversify. Jaguar Land Rover, a firm built on sports cars and off-roaders, knows that its business is precariously reliant on these models continuing to be flavour of the month. While the maker has had some enviable success with its latest launches, no company likes to rest on its laurels, which is why JLR has been busy ploughing cash into a venture capital arm. Called InMotion Ventures, it has become one of the most active investors in mobility and transport in the past year, backing 11 firms in 2017. These have ranged from growth equity investments in existing businesses to help them expand further, to seed-funding for startups. And the investments have been taking place across the globe. So far, JLR’s investment arm has splurged on Lyft, the ridesharing platform in the US that tripled revenues in 2017 and launched in Canada. It has also handed money to By Miles, an insurer that provides cover for low-mileage drivers using telematics. And there’s been cash for a number of car-pooling services, including one in Hong Kong called Cove, another – named Go Kid – for parents, and one for employers aimed at encouraging more carsharing, called Splt. InMotion Ventures has also shelled out JLR’s cash on an artificial intelligence-powered personal travel assistant called Wluper, and Validated, which allows retailers to reward customers by reimbursing parking and transport costs. It’s even splashed out on a demand-response coach service that aims to ease travel between cities and events. Now, these might all sound like quite a far step away from a Range Rover or F-Type, but in a rapidly-changing automotive industry it’s more important than ever that car firms spread their cash around.

I wanted to know the thinking behind JLR’s investment plans. A spokeswoman explained that InMotion Ventures’ objectives were complementary to JLR’s and that the investment firm could call on the company’s ‘entrepreneurial spirit’. She said: ‘We know more people are starting to use mobility services to solve travel and transport problems – everything from traffic congestion to not being able to find a parking space or taxi in a city. This market is still in its early stages in terms of adoption but is growing fast and has massive potential. Morgan Stanley estimates it will be worth more than $2 trillion inside 15 years. ‘We watch what the market and our competitors are doing, and used these lessons to create a business that has the necessary autonomy to operate in this fast-changing space while drawing on Jaguar Land Rover’s resources.’ Although the amount of money invested by JLR in its subsidiary is unclear, it’s likely to be quite substantial – and shows no signs of abating any time soon. At a time when the car industry is facing huge changes and mobility is becoming the preferred buzzword rather than personal transport, these new companies could provide a lifeline to JLR in the future. And JLR isn’t the only car firm changing direction. BMW has invested in Shift, a used car market place in the States, and Nauto, a developer of AI-enabled camera technology for automotive fleets. Daimler, meanwhile, shelled out on a raft of investments in 2017, including ride apps such as the New York-based Via and Dubai-based Careem. It seems, then, that those business brains at the top of the car manufacturers may know more than we do. Does this mark the end of the car industry as we know it? Probably. Should we be worried about it? Maybe. The car industry will change more in the next 10 years than it has in any of the past 50. Yes, it’ll be turbulent, and yes, some people won’t like it, but boy, will it be exciting to watch.

‘InMotion Ventures has become one of the most active investors in mobility and transport in the past year.’

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. 114 | CarDealerMag.co.uk

0115 946 6370 enquiries@frfl.co.uk www.firstesponsefinance.co.uk

CarDealerMag.co.uk | 115

£inance your forecourt

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