Car Dealer Magazine: Issue 51 by Blackball Media

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Issue 51 | June 2012 | CarDealerMag.co.uk | Â£3.50

THE

FAST SHOW

Are buyers ready to accept hybrid power in their super saloons? Porsche Panamera S Hybrid v Mercedes E63 AMG v BMW M5 v Infiniti M35h v Lexus IS-F

ALSO INSIDE

Ferrari v McLaren

War of words over magazine road tests hots up

Bangers4BEN Join us for an epic pan-European charity challenge

Used car stock Find the right cars at the right prices

Join Car Dealer Club by visiting CarDealerClub.com Members get free legal advice worth £195 for a £34.99 subscription

Blackball Media Endeavour Quay Mumby Road, Gosport Hants, PO12 1AH T: (023) 9252 2434 W: CarDealerMag.co.uk

IGNITION.

Editorial Director James Baggott james@blackballmedia.co.uk Twitter: @CarDealerEd STAFF WRITER James Batchelor james.batchelor@blackballmedia.co.uk Twitter: @jrrbatchelor Sub Editor Dave Brown dave@blackballmedia.co.uk Twitter: @CarDealerDave ADVERTISING Manager Duncan Chappell duncan@blackballmedia.co.uk Twitter: @CarDealerAds Advertising EXECUTIVE Jade Simmonds jade@blackballmedia.co.uk Twitter: @CarDealerJade Advertising EXECUTIVE Natasha Smith natasha@blackballmedia.co.uk Twitter: @CarDealerTash

Contributors Mike Jones, Big Mike, James Litton, Tim Naylor, Tim Smith, Tim Heavisides and Jonathan Such

Subscriptions

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You can pay by credit or debit card on our website – visit CarDealerClub.com – or send us a cheque to the address above made payable to ‘Blackball Media Ltd’. Subscriptions include membership to Car Dealer Club. Members get free legal advice worth £195 a year as well as access to a host of discounts from key motor trader suppliers.

Distribution

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

App downloads

April iPhone App downloads: 773 Total downloads: 2,889 April iPad App downloads: 2,191 Total downloads: 2,191 Search for ‘Car Dealer Magazine’ in iTunes

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

It’s something Welcome. Passion. that drives the very soul of

the car industry. Whether that’s your love for the cars you sell, the pride your valeters take in making sure your stock looks stunning, or the designers’ desire to make every new car look even better than the last, passion runs through the very veins of everything we do in the automotive industry. It’s no surprise, then, that car manufacturers are some of the most passionate of all. However, sometimes that passion boils over into an ill-advised need to control the outcome of everything that has an effect on their cars. And, as we reveal in this issue, that can even mean trying to control the results of magazine road tests. We understand what car magazines say about new models can make a difference to sales figures. If, for example, What Car? gives the latest Ford Focus the nod over the Vauxhall Astra that could be a very powerful marketing tool. But when it comes to supercars, does the opinion of motoring writers really make a difference? Probably not. But that hasn’t stopped the most exclusive of car manufacturers trying to ensure their cars win. In this issue we report on the war of words that has erupted between McLaren and Ferrari following road tests of their respective performance cars, the MP4-12C and 458. While we can understand passion fuels these rants, we can’t help but think it does more damage than good. Surely letting journalists get on with forming their opinions without interference says more than anything else? We think so. Read our investigation on p46. iPad App After a few hiccups with Apple approving our iPad App, we finally saw months of hard work go live on April 20.

Free ipad App

2,191 people have it – have you?

Incredibly, the App was so popular, it crashed our servers – so much so, we’ve had to invest in one to solely facilitate it. At the time of writing – just two weeks after launch – we’ve had just shy of 2,200 downloads across the world. We are the only motor trade publication in the UK available on iPad and as the App is free to download and all magazines are available free of charge too, we’re sure downloads are going to be substantial. Read about the App on p10. Used car stock Finding the right used stock for your forecourts has never been easy, but in the current climate it’s tougher than ever. That’s why this month we’re focussing on the companies that can help you find the right vehicles. One of the main reasons Tesco Cars failed was due to its difficulty finding the right stock. If one of the biggest names in retailing can’t get it right, there must be some serious problems out there. Our insight starts on p59. Car Dealer Power And finally, the deadline for voting for your favourite companies to work with and the best car manufacturers to represent is fast approaching. On June 1 we’ll call time on our Car Dealer Power survey, so if you haven’t found the time to fill it in yet, now’s your chance. Visit www.CarDealerPower.com where you can tick the right virtual boxes and have your say. The details of the bribes we’ve got to give away to those that do take the time can be found on p8. Enjoy the issue.

James Baggott, Editor

Free iPhone App 2,889 people have it – have you?

CarDealerMag.co.uk | 03

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Join Car Dealer Club by visiting CarDealerClub.com Members get free legal advice worth £195 for a £34.99 subscription

INSIDE.

Super saloons

Are we ready for green power?

ISSUE 51 I June 2012

dashboard

To the B-Max

High hopes for new Ford

Car Dealer Power: Last chance

iPad App – how it was made

Bangers4BEN 2012 launch

Great Wall’s new models

Ford’s high hopes for B-Max

That Was The Month

JCT600 riding high

Finance

Around The World

Big Mike

Car Dealer Club

forecourt

Great Wall

New models on the way

‘‘

UK back in recession – what does the car industry say?

War of words

McLaren v Ferrari battle hots up

Hear what our experts think it means to you

Kia Cee’d

Mercedes-Benz B-Class

Peugeot 208

Mini Roadster

features Super Saloons shoot out

McLaren v Ferrari

The £50 Car Challenge

Insight: Motor Commerce

Insight: Warrantywise

Used Car Stocking

DATA FILE

Peugeot 208

French firm’s saviour?

a month in A picture...

This month – alongside testing fuel station draining super saloons – we held our judging day for our Green Car Awards. The results of these will be revealed very soon. Two things really stood out on the day for me. The first, the irony of turning up to judge in a 5.5-litre twin turbo AMG Mercedes. And secondly, just how much fun six grand’s worth of Playmobil-like Renault Twizy can be in the wet.

Insight: Recession comments

The Statistics with Motors.co.uk

Right Click

Auctions

Net Gains

Long Term: Kia Rio

Suppliers Guide with Batch

Trader Directory with James Litton 84 Workshops

Time is Money

CarDealerMag.co.uk | 05

Good warranties make the world go round. And your customers come back for more. In the past 12 months, Car Care Plan has paid out over 250,000 claims â&#x20AC;&#x201C; no fuss, no delay. Small wonder we won Warranty Provider of the Year at the 2011 Car Dealer Power awards. Find out how easy it is to switch to us. Call 0844 573 7591 or visit carcareplan.co.uk

Car Care Plan Limited is authorised and regulated by the Financial Services Authority.

feedback. Your comments via email at james@blackballmedia.co.uk | From our website at CarDealerMag.co.uk | And from Twitter: Follow @CarDealerEd

50th issue and iPad love Congratulations on your 50th edition, which I personally feel is the best to date, surely? Great features (‘the 50 year fight’ is a favourite), a contemporary and fresh design, and offering genuine/relevant industry news. On behalf of everyone at ŠKODA UK we wish you and the team many more years of continued success. Pietro Panarisi, via email Just seen Issue 50 of Car Dealer Mag on Afzal’s desk. Just flicked through it – and I want to congratulate you. It looks great and the content is excellent! The Ford v Vauxhall copy: Very clever. Keep up the good work. Mo (Kahn Design), via email

Praise for our iPad App

If I had a cap I would happily salute in a fashion to @CarDealerEd and the iPad edition on Newsstand. Excellent and other magazines take note. Paul Stewart, via Twitter I’m new to the iPad and I’m beginning to wonder how I delete all the other car mags! Car Dealer is a great magazine, and is better than a lot of the other paid-for magazine Apps. Ben Winstone, via iPad

Thanks from BEN

I just wanted to thank you for the cheque for BEN from the 911for2011 sale. You know BEN better than most so I need hardly tell you how much of a difference support like yours makes to BEN nor how much we appreciate it – thank you again, so much. On the £50 cars feature, I’d just say – genius! I absolutely love the way you did this – original,

twitter comments

UK is back in recession – but what does Twitter say? As news broke of the UK slipping back into recession, we were inundated with emails, tweets and comments. Here’s a selection of the views from Twitter. Read more on p72. I’m having my best month ever and the future is looking good too. It’s all down to attitude. People always need cars. Via @rabyporsche We need to stay positive and ignore the news/ media hype. A positive attitude is what we ALL need; head down keep going. Switch off the TV, radios, the news, stop buying newspapers and blank off negative news – as soon as consumers see the bad news they stop spending and start worrying. POSITIVE ATTITUDE, lots of businesses doing better than ever. Via @specialistcars1 From our perspective we have seen an increase in hands-free car kits & tracking units as people are interesting, relevant. Add in ‘successful’ and it ticks every single box – what a brilliant idea! Ray Diggins, via email

Volts to be sold alone Mark Terry gives a small insight into why GM declared bankruptcy in the first place. Generalities

keeping their cars longer.

Via @Hands3Comms

Economic uncertainty is the problem. If the government had a clear strategy on jobs and growth, customers would be more confident to spend. Small businesses get less help than two years ago. Banks risk averse. We won’t see growth unless we support people with drive and ideas. Via @ClassicCarsHire We are screwed if manufacturers don’t cut capacity. Shipping metal around the globe and then offering zero per cent APR isn’t a business model. Via @lessismoremike about brands may have some limited value, but as a customer of the Volt I was left bemused and perplexed with why a company was offering the same product at different prices. Vauxhall has, frankly, a horrible brand and the idea I would pay extra for it is both comical and surreal.

Alex Johnson, via CarDealerMag.co.uk

MY CONFESSION

Big Mac attack I’ve been working at my dealership for about five years now, and seen about seven sales managers come and go. The last one that gave it a go was an absolute div. Where he came from I have no idea. He had no sales skills, no idea of the market and was more occupied with what was probably porn on his laptop when you tried to build a deal with him that more than once I wanted to slam his fingers shut in it. One day, he shouted to me: ‘Get in here’. I walked over to his office. ‘Yes boss?’ I asked. ‘Go to McDonalds for me will ya? I want two double cheese burgers, 20 nuggets and chips. Take that part ex from this morning, I don’t want a sales car stinking of chips!’ He gave me a fiver and

said: ‘Make this cover it.’ Git. I got in the Corsa part ex, it was disgusting. It had old sweet wrappers, bottles, fag ends, bogies, old food and some very odd looking stains in the footwells. The kind of car you wipe your feet on the way out. I got the fat git’s food from the drive-thru, placed the heart attack-in-a-bag on the floor and started to drive back to the showroom. He texted me on my way back saying: ‘Today, yeah! Hurry up.’ This made me angry. Angry enough to empty the food into the junkies’ carpet of a footwell. ‘Now this is happening,’ I said to myself. I let the nuggets fall out the box and unwrapped the

burgers. The chips went everywhere as I helped them around with my foot. I was nearly sick thinking about what was contaminating the food, but the laughter soon outweighed my nausea. Before I turned the corner into the dealership car park, I wrapped the burgers back up, put the nuggets in their box and shuffled the chips into the container. Once it was all back in the bag, I parked up and walked back in with a smile on my face. Gave the boss his feast (with extra seasoning) and went back to my desk to tell the other guys what I’d done. We all watched through the window as he stuffed his face with my special recipe lunch. You’re welcome, boss! TS, Leatherhead CarDealerMag.co.uk | 07

DASHBOARD.

Heavisides

warranty wonders

Heralding a great new chapter for our industry

or followers of the British Touring Car Championship, the return of MGs to the podium is welcome news. Of course, MG are now backed by Nanjing, one of the largest Chinese vehicle producers and people who clearly understand the heritage of the MG brand and the place it holds in UK buyers’ hearts. The sight of new MGs on the track is a fine one indeed. There’s no doubt that Nanjing will be the first of the large Chinese manufacturers to sell in volume in the UK and over the next few years, we can expect the number of Chinese brand dealerships to expand rapidly as they sell more cost-effective vehicles to UK buyers. And it’s great news. When brands from Japan started to come into the UK market in the 1970s many predicted it would be the death knell for the European car industry. Cheap cars, keenly priced and with strong dealer support – a development bound to hammer the nails into the European car industry’s coffin, right? Not quite – just look at where we are now. UK car manufacturing is in the best position it’s been in for a generation, VW are the world’s biggest manufacturing group and cars have never been of such great quality as they are today. There have been some shake-ups along the way but the car industry is in rude health. And this is due in no small part to the increased competition and the way in which those early Japanese brands forced the market to adapt to a changing motoring environment. The whole market upped its game, buyers got better products as a result and the industry moved itself forward much more than it would have done left to its own devices. It’s a pattern which has been repeated by brands from Korea too, so we shouldn’t be surprised when the Chinese inevitably do the same. Increased competition, especially from a new source, helps the whole market to adapt, to improve and to move forward. So new MGs on the track means more than just a return of almost 100 years of heritage – it marks the start of the next phase in the evolution of our industry.

‘There have been some shake-ups on the way but the car industry is in rude health.’

Who is Tim Heavisides?

Heavisides is CEO of Car Care Plan, the UK’s leading provider of motor warranty and GAP products. 08 | CarDealerMag.co.uk

in association with G-3 GLasscoat

Last chance to have your say THE BRIBES

Car Dealer Power survey closes on June 1 – have you filled it in yet?

ime is running out for you to have your say on which car manufacturers and suppliers are the best to do business with. Our Car Dealer Power survey – sponsored by G-3 Glasscoat – closes on June 1. These awards are the only gongs voted for by those that really matter – you, the dealers – which means suppliers and manufacturers are desperate to win. And as a thank you for taking the time to fill in our survey – which can be done in a few minutes online at www.CarDealerPower.com – you’ll be in with your chance to win some cracking prizes (see right). Car Dealer Power is 100 per cent confidential too. We don’t even ask for your name, only your mobile phone number and this is only used to inform winners of our prize draw that they’ve won. If you don’t want to include your number, that’s fine – it just excludes you from the prize draw. For 2012, we’re giving even more prominence to the suppliers that support dealers on a daily basis too. We’ve split a number of the categories up to give the smaller firms more of a chance of recognition in these important awards. We want you to rate the firms you use in all manner of areas of your business so we can celebrate the very best – and invite them to our special Car Dealer Power Awards night to be held on July 17 at the top of the Spinnaker Tower in Portsmouth. Car makers take our survey very seriously and a number have implemented changes to their processes directly off the back of comments made in previous years’ surveys. Filling in Car Dealer Power shouldn’t take longer than a few minutes. You can do it now by visiting www.CarDealerPower.com.

Alfa Romeo Stradale Touring Bike Worth £540, this Alfa Romeo bike will bring some Italian style to your commute to the showroom! The Alloy 7005 tig welded framed bike has lowprofile tyres for road riding, v-brakes, and suspension. Signed Red Bull Shirt by Vettel and Webber Renault has donated a Red Bull team shirt signed by Formula 1 World Champion Sebastian Vettel and his team-mate Mark Webber.

Tickets to Cholmondeley Pageant of Power We’ve got five pairs of tickets to this year’s Pageant of Power – the Goodwood of the north. You’ll see supercars and displays at the Cheshire event held from June 15-17. Winners get tickets for the Sunday worth £60. Armor All Cleaning Kit Armor All have put together eight boxes of cleaning products (worth £40 each) for us. Inside each box are Dashboard Wipes, Carpet and Seat Wipes, Quick Shine Wipes, Glass Cleaner, Wheel Foam, Tire Foam, Protectant and a Multipurpose Cloth. Pair of tickets to Beaulieu Visit the National Motor Museum’s fantastic exhibitions which this year includes a Bond In Motion display. It’s filled with 50 cars from the films. We have one pair of adult tickets worth £38. Thanks to: Alfa Romeo, alfaromeo.co.uk; Renault, Renault.co.uk; Cholmondeley Pageant of Power, cpop.co.uk; Armor All, Armorall.eu; Beaulieu, beaulieu.co.uk

30 40

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dashboard.

iPad App live

Car Dealer Magazine has launched a totally bespoke iPad App which offers readers a multimedia enhanced edition every month. And the best bit? It’s completely free!

ar Dealer Magazine has launched an iPad App with multimedia enhancements – making our award winning title even better! Launched on April 20, the App is a digital reproduction of the printed magazine, but with added video goodies. In the first week the App was downloaded some 1,800 times and that figure has been growing every day since. The App – which adds copies of the magazine to the Newsstand area of your iPad – is free to download, and unusually for a car magazine, all issues of the magazine are free of charge to download too. Some six months in the making, the bespoke App was built for Car Dealer Magazine by App Creatives, the same company behind our hugely popular iPhone App. That alone has had nearly 3,000 downloads. The App launched with our special 50th issue and readers could watch Mike Brewer talk about our challenge to raise money for BEN by trading up from £50 cars. Also on video were many of the cars we featured in the Forecourt section, a unique introduction video from the Car Dealer team, as well as footage of the classic Ford and 10 | CarDealerMag.co.uk

Vauxhall models in our cover feature. The App has been so successful that new servers have had to be put in place to solely service downloads of our digital issues. ‘To be completely honest, we underestimated just how popular our App was going to be,’ explained editorial director James Baggott. ‘We promoted the App via Twitter and with a press release and were shocked at the numbers that downloaded it in the first two days. We could only get some data from Apple on the first 48 hours, but we found 600 people had downloaded it. That was more than we expected. ‘Some people had problems downloading magazine issues once they’d installed the App and this was because so many people were trying to do the same thing at the same time. The new dedicated server will only be used to facilitate the App downloads and our web experts have assured us the new one will cope.’ HOW TO To download the App, visit the iTunes store and search for ‘Car Dealer Magazine’. Once you’ve installed it, you’ll find a library of the last 10 issues of Car Dealer, plus this one! Simply click the Download button next to the issue you

want to read and it’ll be yours in minutes. From Issue 50 onwards you’ll find multimedia elements have been included. In the Library view there are also buttons to keep up-to-date with the latest news from our website, simply click ‘Industry News’. And if you want to tell us how much you’re enjoying the App you can email the editor directly via the ‘Feedback’ button. Once you’ve downloaded an issue, you can turn pages by dragging the corners. If you spot a flashing blue section on a page, that indicates a multimedia element. It could be the entire page is linked to a video, or a hyperlink to a webpage. Some pages even have videos embedded into them to play on the page. In the coming issues we’ll be adding more and more multimedia enhancements to the App. This issue, for example, we’ve teamed up with a new video production company to produce some stunning footage of the cars we tested at Rockingham for the cover shoot. See p38-45. We’d love to hear your thoughts on how you feel we could improve the App further. Get in touch with the editor via email at james@blackballmedia.co.uk or tweet him @CarDealerEd. [CD]

Download our App here: bit.ly/CarDealeriPad

Far left: The last 10 issues of Car Dealer are available to download now for FREE on the iPad App. Left: You can keep up-to-date with the latest news too from our website in the App too

Far right: Pages can be shared on social media websites so you can show others what you’re reading. Right: Videos are embedded into some pages to bring pictures to life

‘Initial downloads have been phenomenal’ Rod Joseph, from App Creatives, the team behind our new iPad App, explains why he’s so proud of the Car Dealer Magazine version and reveals what the firm can do for you. So the Car Dealer App is now live – what do you think of it? We’re extremely proud of it. It’s a fantastic App that offers the very best in Newsstand technology. Few would argue that its overall look and feel is extremely professional and pleasing on the eye. The user experience and functionality are also very good which are vital ingredients to any successful App. We think CDM subscribers will be more than happy with it.

innovative features that are rare in other Newsstand Apps too. These include features such as word search, bookmarking and the ability to share articles through social media. Why do you think it will be popular on the App Store? Simply because the initial downloads have been nothing short of phenomenal. There are few free high quality automotive publications available in the store and so users will be automatically drawn to the CDM App. The automotive industry is phenomenal in terms of size and so the thirst for automotive related content is huge. Providing users with automotive content in a sleek and sexy way will only help to galvanise the App’s overall appeal.

Were there any challenges in the build? The team at AppCreatives has vast experience in creating Apps of all shapes and sizes. Each member of the team brings their own expertise to the table which usually means we deliver our Apps with relatively few issues. However, the biggest challenge we found was helping CDM to facilitate the initial huge demand for the App in terms of server architecture.

What do you expect downloads will be like – bearing in mind the App’s free to download? If early indications are anything to go by then we can expect a fantastic number of downloads. The CDM iPad App fits the tablet user demographic perfectly. The App is available worldwide so expats and the US market will also contribute to overall download volumes.

What part of the App are you most proud of? We would say the overall performance and functionality. It’s so easy to download the issues and interact with them. The App carries some great

What sort of numbers of motor trade staff have access to an iPad? Unfortunately, Apple are very cagey on what information they put out. However, a recent article posted by CDM would

indicate a very high percentage. Mercedes, BMW and McLaren dealerships are now equipping their staff with iPads to showcase their products and services through their Apps. The iPad will soon become a familiar tool when visiting a dealership. What can you offer car dealers for iPad? A lot. Our new and innovative ‘Instamag’ product allows dealers to instantly transfer their publications straight into digital iPad Apps. This allows their customers to view their information in a more interactive and innovative way. We can also develop bespoke iPad apps for dealers that cover a variety of different needs. Our Apps allow customers to search for cars, showcase merchandise, book test drives, book MOTs and services. AppCreatives has already created for automotive giants such as McLaren and Marshalls. Should car dealers be using iPads to attract customers? Most definitely. Car dealers need to realise that more people want up-todate information on the go. The days when car buyers sat in front of a PC to look for cars are being overtaken by savvy mobile users wanting information on the go. iPad Apps provide a fantastic way of presenting this information in an interactive and innovative way. Appcreatives.co.uk, 020 7544 8636 CarDealerMag.co.uk | 11

dashboard.

Bangers is back!

Our charity rally this year aims to deliver goods to the poor in Romania – and then sell our transportation in aid of BEN when we get back. Here’s how to take part

angers4BEN is back – and this year we plan to help not just one charity, but two! Our annual challenge to drive somewhere mad in bangers with a bunch of like-minded motor trade folk is now in its fifth year. In October, the plan is to drive our bangers – costing no more than £700 – all the way to Romania. We’ve teamed up with charity People against Poverty who alleviate poverty and suffering around the world, and we will be supporting their Dobrovat House project. The plan is to fill the cars and vans with goodies to make Dobrovat House a home for children and families in need. We’ll then drive all the way back to Blighty where the cars and vans will be auctioned in aid of BEN, the motor industry trade charity. Last year, Bangers4BEN raised more than £27,000. The event saw 30 teams head to Maranello and the home of Ferrari then back again. Our drive was a bit of a disaster – you may remember our HMS Ark Royal (Volvo S80) broke down just 150 miles into France – but it was still great fun. A few people mentioned that, although it was a great event, we all burnt a lot of fuel needlessly. That’s why this year we’ll be making the journey in aid of two causes. By filling our cars with goods we’ll be delivering much-needed supplies to those people that really need them – and still helping BEN out at the same time. We’ve already hooked up with our local paper and plan to run a ‘Shoebox Appeal’ asking members of the public to fill shoeboxes with the goods we need and deliver them to our offices. We suggest participants in this year’s event do the same – it’s a great way to raise the profile of your dealership and you could even ask for the boxes to be dropped off at your showroom, generating some handy footfall too! See the panel, right, for more information of what to fill the boxes with. THE PLAN So what’s involved with this year’s event? Well, we’ve decided to increase the amount you can spend on your vehicle. We’re desperately trying to find a van we can make the trip in as we want to fill it with as many goods as possible and we suggest you do the same (if you want to donate one to us, get in touch with the editor!). To compensate for the need for a bigger vehicle we’ve increased the amount you can spend from £500 to £700. 12 | CarDealerMag.co.uk

Car Dealer’s entry last year – The Ark Royal. She sank.

SHOEBOXES WE suggest participants team up with their local paper or radio station and set up a shoebox appeal where members of the public help fill your bangers with goods to take to Romania. The People Against Poverty charity has requested certain goods, though, so be sure to make it clear what you need. Goods should be placed in shoeboxes and on the front there needs to be a sheet listing exactly what is inside. Without this we could have trouble on the borders.

The entry fee has also been increased slightly as this time we’ll be away for seven days so there’s more accommodation needed. Entry for two people is £700. That includes your ferry crossing, accommodation, evening meals and breakfast. The event leaves Blighty on October 13 and returns on October 19. On day one we cover 402 miles to Frankfurt, Germany.

‘‘

Here’s what they need: 1. Clothes – adult and child 2. Kitchen utensils 3. Cutlery – knives, forks, etc. 4. Craft materials – pens, pencils, crayons, paper, glue (child friendly) 5. Sweets and chocolate 6. Towels – all sizes 7. Toys – board games and garden games (bats and balls etc) 8. Bedding 9. Toothbrushes and paste.

This year we’ll be making the journey in aid of two causes.

Day two sees us travel 444 miles to Vienna in Austria, and day three takes us 411 miles into Hungary. On day four we cross the border into Romania and hand over our supplies and return to the same hotel in Hungary, before starting the return journey the next day, following the same route as we drove there. The total trip is around 2,400 miles – a real adventure across deepest darkest Europe. And with

Download our iPad App here: bit.ly/CarDealeriPad

Bangers4BEN 2012 in a nutshell

By taking part in this year’s event you’ll be helping two charities. BEN will benefit from the sale of the vehicle you use for the event and any fundraising you do, while an orphanage charity in Romania will benefit from the goods we deliver. We want all participants to fill their cars with shoeboxes full of the products the charities out there need and we’ll hand deliver them on the trip. We suggest hooking up with a local paper and starting a shoebox appeal before the event where the public can help with donations. The event takes place from October 13-19. Entry is £700 and covers accommodation, evening meals and breakfast and ferry crossings. All other costs are the responsibility of entrants. You have up to £700 to spend on the ‘banger’ for the event. Places are strictly limited to 36 and will sell out fast – to book your place call Kelly Neal on 01344 294720.

Car Dealer hands over £12k to BEN

Last year, teams headed to the home of Ferrari. Below: High jinks and fancy dress the added bonus of helping two amazing causes. Places on the trip are limited to just 36 and we sold out very quickly last year, so we suggest registering your interest early. Places are only secured upon payment of the £700 entry fee. The £700 you can spend on your vehicle is a maximum, but remember BEN makes their money when the cars are sold at a BCA auction, so the better the car, the more money BEN will make, if you get our drift... Once again The AA will be supporting our trip. Two patrols will be following our convoy all the way to Romania and back again to help ensure we

all make it there and back. Last year they really had their work cut out – and not just with our car – so it will be great to have them along again. ‘This year’s Bangers4BEN event not only helps us but also helps a second charity,’ said a spokeswoman for BEN. ‘It gives an added reason for burning all that fuel and gives the journey some added purpose. Savvy dealers will also see it as an excellent publicity opportunity as by collaborating with their local papers for a shoebox appeal they can gain some real marketing benefits.’ To book your place, call Kelly Neal on 01344 294720. [CD]

Car Dealer Magazine has handed over a cheque for £11,995 to BEN – the proceeds of our 911 for 2011 campaign. In Issue 50 we reported on the sale of the Porsche 911 we’ve been trading up to from nothing for 15 months. Dealer 911 Virgin sold the car for us and we’ve now handed over the wedge of cash to the charity. Ray Diggins from BEN said: ‘We are delighted to receive this money from Car Dealer Magazine and are very grateful for the efforts they’ve put in. Car Dealer’s unique and fun fundraising ideas have been a revelation and this money makes a real difference to people’s lives.’ Car Dealer is currently BEN’s Trade Publication of the Year.

BEN helps people just like you BEN is the UK’s dedicated charity for those who work or have worked in the automotive industry. They offer practical and financial help, support, advice and friendship to our automotive colleagues and their family dependants. Each year the industry charity touches the lives of 15,000 men, women and children, but with up to one million people eligible for its support there is always so much more to do. In addition to its substantial welfare work, BEN operates a number of care centres at various locations throughout the UK and a day care centre in Coventry.

CarDealerMag.co.uk | 13

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Mason

CRAcKING THE CODE

Boost your business with the Motor Codes widget

oyota service Surrey. Vauxhall service Middlesex. Fairly broad search terms but both return Motor Codes garages on page one of Google. Why? It’s no coincidence that Jemca Toyota, Croydon and Now Vauxhall, Bedfont have recently uploaded promotional banners to their Motor Codes profile pages and have since experienced hundreds of appearances in our garage finder results pages. That’s potential custom for these garages. In my previous column, I touched on the different search terms people use and, while carefully-worded copy is a key ingredient for SEO success, it is only one part of the puzzle. Another cornerstone of optimising your Motor Codes profile page for search engines is to build your network of inbound links from other sources – ‘linkbuilding’. The best approach to linkbuilding is referred to as organic: Carefully cultivating your online presence so that a wide variety of websites begin to link to your profile page or website. Consider what sort of sites might want to link to yours. Is there a directory of local businesses that you could be featured in? Have you got an interesting story for local media that could result in quality links back to your site? The advertising area of your profile page and the Motor Codes ratings widget – the real-time customer feedback score driven by Motor Codes survey data that can be displayed on your own website – are effective examples of link building. The Motor Codes network is extensive, with almost 7,000 garages subscribed. The more surveys completed by your customers, the more links built, the more authority motorcodes.co.uk gets among the search engines. Those currently making the most of their profile pages and driving additional web traffic to the Motor Codes site are, essentially, helping all subscribers. The potential to attract new business grows with every profile page that’s updated and with every link that’s made so, for Motor Codes subscribers, why not post the easily downloadable Motor Codes ratings widget, accessed through your log-in area, on your own site? This really is the modern form of marketing – don’t miss out.

‘This really is the modern form of marketing – don’t miss out.’

Who is Chris Mason?

Mason is managing director at Motor Codes, the government-backed, self-regulatory body for the motor industry. 16 | CarDealerMag.co.uk

More Great Wall models on the way says UK boss Good-looking SUV could be arriving as soon as 2013

hinese firm Great Wall has revealed that a range of cars could follow its Steed pick-up following the brand’s UK launch. Speaking to Car Dealer at the launch of the Steed, Great Wall’s UK MD Paul Hegarty said the H6 SUV, pictured, could be here as early as next year. He said: ‘The H6 is complementary to Steed. It’s an SUV and with the Steed pickup, customers would “get it”. It’s also Great Wall’s back-bone in terms of the product they develop, and there’s more SUVs on the horizon like a Daihatsu Terios-type SUV: Small and with a 1.5-litre engine. We are in discussions with Great Wall about this car at the present time.’ Car Dealer exclusively told the story of the Great Wall launch last year. Twelve months on, the brand is now established in the UK with 40 dealers on its books, many thanks to that original Car Dealer article. We drove the Steed last year and were impressed – now the firm has put a price

Trader’s WBAC rival Auto Trader has launched a rival to WeBuyAnyCar.com – and dealers look set to benefit! Hidden away on the online classified website, Car Dealer found a section where consumers can enter their car’s registration and dealers are invited to bid. Auto Trader says the product offers a ‘no sale, no fee’ policy and will charge consumers £45 if they sell their car to one of the bidding dealers. The site claims to offer consumers’ cars to a network of 5,000 trusted dealers and offers a secure online transaction to handle the sale. The site says it will return a maximum of three bids and promises consumers: ‘No waiting in for buyers, supervising test drives or handling cash. Once you have submitted your car details, we’ll do the leg-work to find you the best bids.’ The site will be a powerful rival to WeBuyAnyCar.com, the nationally publicised website which lets buyers sell their cars direct to the trade.

tag on the car. There are just two models, available: One at £13,998 and the second at £15,998. Both come highly specified with heated leather seats, air conditioning and 16-inch alloys. Hegarty wouldn’t confirm whether he’ll be bringing the C10 supermini to market which we drove last year. ‘Steed fits its position in its segment very well, but C10 is in a very different and difficult marketplace because there’s 250 direct competitors,’ he said. ‘We will take C10 when we are certain that it can be as effective in its market as Steed.’ Hegarty ruled out a Nissan Juke-like niche SUV, though, saying: ‘We need to be conventional. Our cars shouldn’t look too radical – not until the brand has developed.’

recession THE UK economy is officially back in recession, figures from the Office of National Statistics show. In the first three months of 2012, the economy decreased 0.2 per cent. It follows a 0.1 per cent decrease in the last three months of 2011. Recession is defined by two consecutive quarters that have contracted, and means the UK is experiencing a double-dip. But it would seem the UK car industry is bucking the economy. SMMT registration figures for April showed the number of cars sold in the month was up 3.3 per cent, and that came on the back of a 1.8 per cent rise in March. Car Dealer has asked the industry for its thoughts on what it all means. Encouragingly, the overwhelming response was positive – turn to p72 to hear what the industry says.

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Customers so keen to check out Ford’s clever new B-Max MPV’s innovative design looks like it will be a hit with Blue Oval buyers

ord’s new B-Max compact MPV really is a car for dealers to get excited about. That’s the verdict of Philip Maskell, chairman and managing director of Essex Ford. The all-new car features a combination of unique design, competitive economy and some of the most advanced small car technology in Europe. Its easy-access door system provides unobstructed entry and exit with hinged front doors and sliding rear doors integrating the central body pillars – a feature that strikes people immediately when they see the car for the first time. The new car also achieves classleading fuel economy and the lowest CO2 emissions for both petrol and diesel engines. And it’s the first European car to offer SYNC, Ford’s voice-activated, in-car connectivity system. A B-Max was recently given to Maskell and his team so they could hold a special preview event. Maskell, whose company runs five dealerships across south Essex in towns such as Basildon, Billericay and Southend, told Car Dealer: ‘It was a very exciting day. The amount of interest

Above, Philip Maskell and Matt Brown with the B-Max, and left, the buzz it created at Essex Ford’s preview event

certainly surprised us. There was an amazing buzz in the showroom.’ Matt Brown, group marketing director, added: ‘More than 100 people came along and everyone loved the car with its stunning design. We booked 35 test drives and actually took orders for two B-Max vehicles on the day… and we also sold a Fiesta which we wouldn’t have sold otherwise!

Volt and Ampera will be kept separate, says Terry CHEVROLET’S Volt will never be sold alongside its sister car the Vauxhall Ampera, Car Dealer has learnt. That’s the view of Chevrolet UK’s managing director Mark Terry who believes a Chevrolet customer is very different from a Vauxhall one. However, while sales of the two GM extended-range battery cars will be kept separate, dealers can take comfort in the workshop opportunities the two cars will present in the future. Terry said that the Volt’s and Ampera’s extended-range electric-vehicle technology – called ‘voltech’ – will allow a specialist e-rev (extended range electric vehicle) Chevrolet dealer to service or work on a Vauxhall Ampera and vice-versa.

‘For our company, this vehicle represents a huge opportunity and it’s a very exciting prospect as it’s a good conquest opportunity.’ The man at the top of Ford in Britain, Mark Ovenden, is also optimistic about the car’s potential to sell well. The first B-Maxes will be delivered to their owners in September and the company is hoping to shift around 14,000 a year. Ovenden told us: ‘The concept is so new and so different. The dealer response has been great and the reaction to it when we gave it to Phil was superb.’

‘We want 230bhp in 208 GTI’ PEUGEOT hot-hatch fans worried the 208 GTI won’t live up to its predecessor’s legend can take solace in one fact: The man leading the team behind the engine choice put the 1.9litre in the 205 GTI! Philippe Merckx is in charge of Peugeot’s 100-strong engine design team and his workforce is currently testing prototypes of the next GTI. So which engine does he prefer? ‘There’s really only one choice,’ said Merckx. ‘And that’s the 1.6-litre turbo from the RCZ. The decision we’re currently debating is whether it should be in 200bhp or 230bhp guise.

‘I prefer the 230bhp but there are issues with torque steer. ‘Developing the engine for the new 208 GTI is very difficult as so much has changed since the 205 GTI,’ explained Merckx. ‘The image for GTIs has changed over the years. Now the bosses have to consider marketing and how highpowered cars will be received. ‘However, I have tried the 230bhp 1.6-litre 208 GTI prototype and was very impressed. There is development to be made and no decisions have been taken, but I am passionate about making it exciting and great to drive.’

AUTO TRADER

Fall in value of used cars THE latest Auto Trader Price Index reports that the average asking price of used cars in quarter one 2012 was £8,891, a fall of 3.9 per cent yearon-year. Auto Trader says this was due to an increase in volume of older stock on the market and a decrease in newer, higher priced vehicles, with the volume of three- to 10-year-old cars up eight per cent to 67 per cent and the volume of cars less than three years old down 10 per cent to 23 per cent.

EXPANSION

Acquisitions ‘a perfect fit’ DEALER group Ridgeway has acquired BMW and Mini dealerships in Bournemouth, Salisbury and Odiham from Wood Group Limited. The group has acquired them for an undisclosed sum and has stated that all former employees from Wood Group will transfer to Ridgeway. ‘The acquisition of the BMW and Mini sites are a perfect strategic fit for us in terms of their locations, and very much complements the product and brands we already represent,’ said David Newman, Ridgeway group chairman.

NEW VENUE

Use facilities free of charge NETWORKING groups and local businesses in Leamington Spa are able to take advantage of a brand new conference venue. Listers Volkswagen, on Tachbrook Park, Leamington Spa, is opening its showroom doors and inviting business groups to utilise its conference facilities free of charge. CarDealerMag.co.uk | 19

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That Was The Week – our roundups are posted online on Fridays CarDealerMagazine.co.uk

The month, digested We keep an eye on the motoring must-knows so you don’t have to. Here’s what’s been happening in the auto industry this month

APRIL 10-13 NISSAN announced it is to build all-new midsized car at its Sunderland Plant in 2014. Overall the car will create 3,000 new jobs at Nissan and at component factories. Toyota published prices for its Prius Plug-in. Thanks to CO2 emissions of 49g/km, the car is eligible for the £5k Government-funded grant. It means prices start at £27,895 after the grant is deducted. Employee turnover in franchise dealerships is typically slightly less than 30 per cent, new research shows MG improved CO2 emissions on its MG6 range. The car now emits 174g/km and its mpg figure has risen by 1.6 to 27.7mpg. List prices have been cut by £40. Volvo revealed the asking price for its new V40. The premium hatchback starts at £19,745 and rises to £26,795 for the range-topping D4 SE Lux Nav. The D2 model emits 94g/km of CO2. To mark the debut of the DS line in China, Citroen created the Numero 9. The company says the concept signals the styling cues of the next three DS line models: a C-segment premium sedan, an SUV and a D-segment executive saloon.

APRIL 16-20 TO celebrate the delivery of the first customer cars, Mini occupied one of Harrod’s windows with a Mini Inspired by Goodwood. The £41,005 car features Roll-Royce fixtures and fittings. Dealer part exchange vehicle values increased by 4.6 per cent (£109 to £2,457) in March, said Manheim. Ford released the first official pictures of its new Transit Custom. It’s the first model of Ford’s plan to refresh its LCV range by 2014, and uses Ford’s ‘kienetic’ design language previously used on its passenger cars. New cars registered in the UK last year were 18 per cent more fuel efficient than the average car on the road, said the SMMT. Audi bought the Italian motorbike maker Ducati. It now means the German firm can take the fight to BMW in the motorbike sector, and continues Audi’s recent strong growth. To mark BMW M’s 40th anniversary, a special M3 coupe has been made. Called the ‘Frozen Edition’, only 100 are coming to the UK and it’s priced at £58,720.

APRIL 23-27 THE UK economy officially slipped back into recession. Full story p72-3 Renault group sales fell 7.9 per cent to 638,498

Clockwise: Juke-R; Ford’s new Transit; Audi buys Ducati; the Eterniti Artemis

SPORTS FOR KIA

Story of the month KIA’S Paul Phillpot has admitted that entering premium sectors is not what the Korean firm should concentrate upon. Talking to Car Dealer, Phillpot, who’s currently chief operating officer for Kia Europe and will become president and CEO of Kia Motors UK in July, said that by going into premium segments Kia would be moving away from its ‘heart’. While premium is not a focus for Kia, the sports market certainly is a sector Kia wants to see developments in. Full story p24 units in the first quarter 2012, due to ‘a very unfavorable European market’ the firm said. Marshall announced the completion of its acquisition of the Lincoln Jaguar business from the Co-operative Society. Eterniti Motors used the Beijing Motor Show to show off its ‘engineering prototype’ of the Artemis super-SUV. Prices will start from around £210k. China is likely to become JLR’s number one market – riding above the UK. Sales in the country have risen to 42,000, with JLR accounting

for 20 per cent of all UK exports to China. Porsche Centre Wilmslow are setting their sights on raising money for BEN. The centre will take part in the UK Three Peaks Challenge to raise funds for the automotive industry charity.

APRIL 30 - MAY 4 HONDA has officially started a second shift at their car plant in Swindon. Five hundred new associates have been recruited, bringing the total number of employees to 3,500. Montagu Private Equity LLP, one of Europe’s leading private equity firms, reached an agreement to acquire CAP from Top Right Group. Nissan announced it will put its mad Juke-R into production. The car, engineered by RML, will go into limited production. Audi revealed the TT RS plus Coupe and Roadster. It will sit alongside the TT RS range, and will cost between £48,945 to £52,265. Order books are open now. Deliveries begin in the summer. Kia Motors announced major increases in sales volumes, revenue and profit for the first quarter of 2012. More than 600k vehicles were sold worldwide – an increase of 12.4 per cent over 2011. Jaguar Land Rover employees at Halewood Operations celebrated the production of the 300,000th Land Rover Freelander 2. [CD] CarDealerMag.co.uk | 21

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Ferrari refurb complete ‘Experience with the brand will be enhanced’

new-look Ferrari dealership has been officially opened in West Yorkshire after undergoing an extensive refurbishment. The JCT600 Brooklands showroom in Leeds boasts Ferrari’s new corporate identity, which was first introduced in 2010. It features a brand new customer lounge, dedicated handover bay and a fully detailed ‘Atelier’. This is modelled on the one at the factory in Maranello, and enables customers to choose from a range of options to personalise their new Ferrari. David Clapham, brand director, specialist cars at JCT600 Brooklands, said: ‘The Ferrari dealership has undergone an extensive refurbishment which has taken six months to complete. ‘The result is a landmark facility for our customers where they can view these beautiful cars in spacious, luxurious surroundings. ‘It seems particularly fitting that we are celebrating the opening of these fantastic new premises in the same year we are marking the 30th anniversary of our relationship with Ferrari.’ Matteo Torre, regional manager for Ferrari

North Europe, said: ‘Ferrari’s new brand identity is designed to provide a welcoming environment for customers who can relax and enjoy the purchase and ownership experience. Their experience with the brand will be enhanced by the facilities we are opening here.’ The unveiling of the new Ferrari showroom came shortly before JCT600 announced it had made a £500,000 investment in its Peugeot and Seat dealership in Menston. And there was further good news from the company recently when it was announced that turnover had leapt to £623m in 2011. The firm made a pre-tax profit of £8.5m on ordinary activities (down from £12.3m in the previous year). Ferrari vs McLaren, p46

KIA

Premium sectors are not for us, says Phillpott KIA’S Paul Phillpot has admitted that entering premium sectors is not what the Korean firm should concentrate upon. Talking to Car Dealer, Phillpot, who’s currently chief operating officer for Kia Europe and will become president and CEO of Kia Motors UK in July, said that by going into premium segments Kia would be moving away from its ‘heart’. ‘I think premium is a dangerous word,’ said Phillpot. ‘I’ve lived in Germany for three years, and the likes of BMW, Mercedes, Audi and JLR are true premium brands which command a 10,000 euro price tag over a Ford or an Opel. ‘I think this is not where Kia should go. I think Kia can become more premium in the mainstream segment, but Kia will always be a mainstream brand.’ While premium is not a focus for Kia, the sports market certainly is a sector the European arm of Kia wants to see developments in. ‘One thing we are really pushing for is more sporting powertrains in our mainstream products,’ explained Phillpot. Cee’d handbook, p34

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FINANCE. SUZUKI

PCP deals extended into Q2 HOT off the back of successful quarter one sales, Suzuki has extended its popular PCP offers into quarter two. The deals are aimed at buyers in the 18-35 category, as well as those looking for a low deposit and low monthly payment option. Taking an Alto SZ2 as an example, a deposit of just £466 is followed by 42 monthly payments of £125 with the option to pay a final balloon payment of £2,468 at the end of the agreement to keep the car. Alto SZ2 is currently the most inexpensive car to buy and own with Group 4E insurance classification and a very low combined fuel consumption of 64.2mpg. Moving up the range and taking a Splash SZ2 1.0-litre at £7,777 as an example on a PCP; the deposit is now reduced to £777 followed by 42 monthly payments of £139 and an optional final payment of £2,846 at the end of the agreement. For a similar PCP for a Swift SZ2 three door at £8,888, the deposit is just £599 followed by 42 monthly payments of £159 and a final payment of £3,535.

Bank figures show 8m car buyers are ready to spend 18 per cent of adults set to buy between March and August, says Sainsbury’s

he latest figures from Sainsbury’s Bank’s car buying index reveals that 8.3m (18 per cent) adults in Great Britain intend to buy a car between March and August this year, an increase of 17 per cent in 12 months, indicating an increase in consumer confidence. According to the study, 3.6m people (eight per cent) intend to buy a new vehicle in this period – crucially, though, 20 per cent of the planned vehicle spend will be financed by vehicle loans; up 10 per cent on March 2011. The figures are substantially higher than six months ago in September 2011, which marked a low point for predicted car purchases, suggesting a significant number of people deferred replacing a vehicle and are now looking to do so. In September 2011, only 5.6m people said they intended to buy in the next six months,

‘‘

People are planning to borrow a total of £18.2bn to finance new or second hand vehicles.

compared with 7.2m in March 2011, and 7.7m in September 2010. Men are more likely to be looking to buy a vehicle in the near future than women, with 4.5m males (19 per cent) expecting to buy a car before September compared to 3.8m women (16 per cent). Interestingly, the difference in buying intentions is almost

exclusively for new cars, as men are twice as likely as women to be looking for a new car (10 per cent of men, five per cent of women). Steven Baillie, head of loans at Sainsbury’s Bank, said: ‘Our car buying index provides a good indicator of consumer confidence, which seems to have increased since last September. ‘This is helped potentially by the number of offers and deals available. ‘The latest figures suggest that collectively, people are planning to borrow a total of £18.2bn between March and August to finance new or second hand vehicles.’ Baillie added it’s important for customers to shop around for the loan that offers them the best value.

Korean firm offers more value for customers with new PCP deals HYUNDAI is ushering in the summer with some attractive PCP deals at 6.9 per cent APR which offer outstanding value across the range. The Hyundai i10 city car is available from £99/month, while the brand new i30 hits showrooms nationwide from just £190/month, with an option of an

inflation-proof fixed service plan. The Veloster 1+2 coupe is available on the road for £249/month, while the new i40 Tourer can be financed for £349/month. Tony Whitehorn, president and CEO, Hyundai Motor UK, said: ‘With the cost of motoring set to continue

to rise, consumers will be searching out deals that offer the best value for money. ‘Hyundai’s latest product range is now the best ever with each model offering great design, functionality, a high level of standard specification, technology and low cost of ownership.’

Valuing Service – Valuing You! First Response Finance is the first choice for the UK’s small to medium sized dealer market. 26 | CarDealerMag.co.uk

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DEAL FINDER Latest finance deals on crossovers COUNTRYMAN THE Mini Countryman, though derided by motoring hacks across the UK, has been a sales hit among consumers. The extra pair of doors, and a loftier driving position over the standard Mini hatch, have won a lot of buyers. And Mini has a tempting finance deal on Mini One Countryman – which boasts heated door mirrors, air conditioning, and Bluetooth. For a deposit of £2,500 and a dealer deposit contribution of £979.37, customers can pay £244.08 for 48 months at 7.5 per cent APR. An excess mileage fee sits at 3.6

pence per mile. An optional final payment comes in at £6,391.80 and, factor in an option-topurchase fee of £10, the total amount payable is £21,352.93.

Questions over Tesco o... what happened to Tesco Cars? Was it the lack of stock? Was it the lack of customer choice? Was it the lack of customers? Was it the lack of marketing? Was it the lack of available profit? Or was it perhaps all of the above? I don’t suppose we will ever really find out the full answer but I think it’s interesting that the question is being asked after only 12 months in business. According to some sources, Tesco’s car sales were rather poor in comparison to the organisation’s grand expectations set out at their big launch. Many in the industry are saying little while at the same time trying hard not to smile too much because the closure of this venture represents another failed attempt to use branding to buy market share. We all know that branding (with or without a franchise) is less than half the story when it comes to making an impact in today’s UK car market – you need carefully selected partners who can offer advice in the right areas. Tesco has been quoted as saying that it was important to refocus on their core business and I think this reveals their major flaw… how can anyone expect to succeed in the UK car market if the business isn’t ‘core’ already? I’m not sure how many car dealers would consider selling groceries as a sideline but I’m pretty confident that Tesco and Asda, et al, don’t need to worry too much about increased competition coming from ‘car supermarkets’ anytime soon. Maybe someone from Tesco should have called First Response Finance for advice on how to sell more cars – especially to the many non-prime finance customers that we know are becoming increasingly important in today’s market. Or maybe they should have given away double Clubcard points.

‘You need carefully selected partners to offer advice.’

the customer wish to keep the car. All of this means the total amount payable is £17,772.

URBAN CRUISER COMPARED to the Countryman and the Juke, the Toyota Urban Cruiser is a rarer site on UK roads. But the bonus of that is owners feel as though they are not following the crowd. Toyota has an interesting finance deal available on the car at the moment – and it’s sure to get more customers interested in the quirky 1.33-litre Japanese crossover. A customer deposit of £3,503.35 gets the ball rolling, followed by 35 monthly payments of £269 at 6.9 per cent APR. An optional final payment comes to the tune of £5,411.70, meaning the total amount payable is £18,330.05.

time is money

JUKE SQUARELY in the face of Mini and its Countryman is the Nissan Juke. The British-built crossover has done wonders for Nissan dealers’ sales targets, with the car almost walking out of showrooms. And the Japanese firm has a tasty finance deal on its Juke Acenta Premium 1.6-litre 2WD model at the moment. A customer deposit of £3,515 is needed to begin the deal, followed by 43 monthly payments of £199 at 6.9 per cent. An optional final payment of £5,898 is all that’s needed to complete the deal should

Meldrum

Standard equipment includes 16-inch alloys, climate control air conditioning, Bluetooth connectivity, smart entry and smart system, and privacy glass.

Who is Jim Meldrum?

Jim is regional sales manager for First Response Finance. Call him on 07917 460 111 or email Jimm@frfl.co.uk

Tel: 0844 8730819 Web: www.frfl.co.uk CarDealerMag.co.uk | 27

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Around the world Dealer news from somewhere other than here

Thurlow Nunn Vauxhall signs football sponsorship deal bit.ly/dealerfootball

CANADA

APRIL 2012 was the most successful April in the 60-year history of Volkswagen Canada. The firm managed to sell 5,620 new vehicles, and, in the year-to-date, the company has improved its results by 7.3 per cent. A total of 17,332 vehicles have been delivered by Volkswagen’s 135 dealers nationwide.

CHINA

FORD is impressed with its sales in China. Sales in the country in April totalled 9,400 units – a figure fuelled by the launch of the new Focus. Overall, sales in China are up 24 per cent. The firm believes growth in the country – particularly in the eastern and western regions – will come from the small hatchback segment, where more value-orientated products are favoured.

USA

BOTH Toyota and Chrysler saw big sales gains in the US in April, despite the month having more Sundays in it – and fewer cars are sold on Sundays. However, Ford and General Motors saw a decrease in sales – five and eight per cent respectively, although GM has increased its full-year sales forecast to 14m cars.

SOUTH AMERICA

BMW is reported to be considering building a new factory in South America. Although the German automaker’s main sales markets are still Germany, the UK, China and America, the company made good sales progress in South America last year – and BMW Group chairman Norbert Reithofer says the firm’s strategy has always involved production following the market.

JAPAN

Toyota expects its profit to more than double this financial year after a difficult 12 months that were plagued by natural disasters and a strong domestic currency. Toyota’s profit for the 2012 financial year dropped by 30 per cent to £2.2bn. With production back in full swing, Japan’s largest vehicle manufacturer has forecast a £5.9bn profit for the 2013 financial year.

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Surprise, surprise! The driver reunited with his company car O

ver the past couple of decades, the used car trade has become ever more sanitised. And while that’s very much a good thing for the buyer, who less and less frequently falls prey to bodges, clocking and general nefariousness, one thing it does mean is that the trade has lost quite a few of its characters. Regular readers of this column will know that I, in my twilight years of trading, am pretty much back where I started, running an independent dealership specialising in cars that ‘get people out of trouble’ – inexpensive hacks that are dutifully reliable but often a bit scruffy round the edges. A description that could just as well be applied to the proprietor as to his stock. In the middle years of my career, I worked at main dealer level as used car manager for Austin Rover, Fiat Group and very briefly with a Korean newcomer, whose soulless consumer goods with wheels were enough to make me set up on my own again and buy and sell cars I like. What I did learn in my main dealer days, though, is that a franchised dealer’s integrity is core to its success, so there were no tasty bodges – most of my funnier stories relate to my earlier days. So let me wind the clock back, both physically and metaphorically, to the mid-1980s. At the time, I worked for a small dealership on the outskirts of Birmingham, not that far from my current site. The boss, a die-hard West Midlander called Bernard, was nicknamed Bernie the Barber after his habit of giving each car that came onto our lot a haircut. At the time, one of our regular sources of stock was a fleet company based in North London, deemed by Bernie to be far enough away from the concrete colossus of Brum for us to get away with trimming the mileages right down and not get caught. We had a constant supply of Ford Escorts and Cortinas coming our way with 80,000 or so miles on the clock at three years old, used by reps for sailing up and down the M1. In those days, a car was lucky to reach 100k without needing serious work, so these three-year-old Fords were quite tired, but often with gleaming bodywork as the reps needed to look smart on appointments. Ideal, then, for a quick trim. What Bernie wasn’t accounting for was one of the fleet drivers moving jobs, up to Birmingham, to a role

Big

mike Our man on the inside spills the beans on the car business...

with no company car. He’d been driving Cortinas for years and loved them, so ahead of starting his new job he went out to look for a car to commute in. You know what happens next… It was a Saturday morning, and said punter had seen our ad in the paper for a silver Cortina 2.0GL – identical to the one he’d loved and cherished for the past three years. On leaving his past job, he’d been offered the ’Tina as part of his severance, but he didn’t believe it was worth the asking price as it had covered 82,000 miles. Our 37,000-mile example was the same price, so he was, naturally, quite interested. Imagine his surprise, then, on seeing his very own company car resplendent on our lot. Having kicked the tyres, as punters are prone to do (why on earth do people

‘Bernie’s office was a frightening place, especially for a young buck like me.’ do this?), he then expressed surprise that the mileage was less than half of what it had been last time he’d driven it. He was even more surprised to see a fully stamped service book, the judicious use of Tipp-Ex and a decent photocopier making it look almost convincing. He immediately collared Bernie and took him to task over the mileage, at which point Bernie invited him into ‘the office’. ‘The Office’ was a frightening place, especially for a young buck like me. A 1972 Sprite caravan finished in pensioner’s racing beige, you knew if it was serious when Bernie reached for ‘Linky’, his pet Morris Oxford gear linkage, with which he’d happily administer a swift rap over the wrists for anyone who questioned his business practices. Expecting howls of agony and the punter to run from the lot, I was surprised to see both Bernie and the buyer emerge from the office chatting jovially, as they signed over the Cortina’s paperwork. Apparently, the reason the bloke had never bought the company car was because the mileage was too high for him to get a decent price for it in a couple of years’ time, but now it had 37k on the clock, it was a whole different proposition...

Who is Big Mike?

Well, that would be telling. What we do know is he’s had 30 years in the car trade and picked up some seriously funny tales along the way. CarDealerMag.co.uk | 31

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I run a repair garage, and a customer recently returned a vehicle to me after we’d done some work on the brakes. It appeared that the brake cables had not been correctly refastened. We have fixed the problem free of charge for the customer; however they were not pleased and will not use us again. How do I deal with the employee responsible? Can I recover the money this incident has cost me from the employee? RM, Norfolk It would appear the employee may be guilty of gross misconduct, as their negligent behaviour has put your customer’s life in potential danger. This is therefore a serious disciplinary matter and should be dealt with promptly while adhering to the relevant ACAS Codes of Practice. 1. Write to the employee as soon as possible, inviting them to an investigatory meeting. Allow at least 24 hours’ notice and advise them of their right to have a representative present. 2. Hold the meeting, discussing the allegations made against the employee and allowing them the opportunity to put forward their version of the facts. No decision must be made here; the purpose of this meeting is investigatory only. 3. You can then choose whether to place the employee on suspension or not, and investigate and collate any further evidence which will verify any disciplinary action which may be necessary. 4. Once you have reached a decision, send

ADVICE

Cabriolet conundrum

Q. I have problems at this time of year with customers buying cabriolets and then not taking care of the mechanisms. What can I do? DM, Berkshire A. If you sense there is a requirement for drivers to operate and/or maintain the vehicles in a particular way then by all means get a note typed out before they buy the car which they can sign to confirm they are aware of it. Sometimes these aspects can be covered in the handbook but for belt and braces, give the customer the extra sheet and make a note on the invoice that it was given with a copy stapled to it for your records. The same principle applies another letter out to the employee inviting them to a further meeting, ensuring that any evidence you intend to rely on is included with the letter. 5. At the meeting, ask the employee if they have anything further to say in relation to the evidence disclosed to them. Allow them to comment, suspend the meeting for a period of further consideration, and then inform the employee of your decision. 6. Inform the employee that formal written notification will be sent to them within seven days. Dependent on the severity of the

to other particular features. So, for instance, make it clear to buyers of diesel cars that they need to do some faster driving to burn off the carbon in the diesel particulate filter. None of these ideas will take away Sale of Goods rights if there is a genuine defect but if it is just operator negligence/error then they can be very helpful. negligence, the employee may be lucky to only suffer a final written warning, however, with something as severe as the above case, dismissal may be an option. Regarding deductions from pay, that will depend upon the wording of your contract of employment. We draft into our clients’ contracts a clause which allows for deductions of this nature to be made, as you cannot make deductions without one. Deductions of large sums must be taken gradually, as the employee must still be able to live on the wages they are paid.

We can’t contact our customer Q. A customer asked us to price up a repair on their vehicle. We did some diagnosis work but since we told them our diagnosis charge and the charge for the repair, we can’t make contact. What can we do? KH, Somerset A. The first thing to do is to make sure you have a name, address and telephone number (preferably a landline) and a signed job card to show authorisation for the diagnosis etc. If you haven’t got an address you cannot take any legal action. It is wise to use all facilities you can to check whether the customer actually owns the vehicle. It may be on finance, so HPI/Experian are good sources of information. Police might help too. Assuming there are no impediments to proceeding, then there are two documents which

need to be sent and can be combined into one. 1. Notice to require delivery to customer. 2. Notice of intention to sell. This should include: 1. Notification seeking to agree with the owner that the vehicle is ready for collection (or agree arrangements for delivery to the customer if previously agreed); 2. Request for payment of sums due (specify terms) and removal of the vehicle upon payment; 3. Your name, address and where the vehicle is held. Whilst storage charges may be imposed, we would suggest these are claimed separately. This notice should be sent by Recorded Delivery to the customer’s last known address or, if a

company, to the Registered Office (see Companies House website). You should take all reasonable steps (and record those steps) to bring the notice to the attention of the customer. Once you have done all you can, the next notice of intention to sell should be sent. 1. Notice of intention to sell (again you should include items 2 and 3 above) and also... 3. Confirm the date after which you propose to sell the vehicle which should be three months (at least) from the date of service (if sums are owing) or after a ‘reasonable period’ if there are no sums owing. This should be sent in the same way as the first notice. If there is a dispute then you cannot proceed but must pursue the claim at County Court.

Let Lawgistics help you Lawgistics are extremely experienced when it comes to helping car dealers with legal matters. The firm has a reputation for assisting the motor trade with customer complaints, health and safety issues, trade-to-trade problems and much more. To get advice like this (worth £199) join Car Dealer Club for just £34.99 per year. Sign up at CarDealerClub.com 32 | CarDealerMag.co.uk

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forecourt. the knowledge Model: Kia Cee’d Price: £14,500 (est) Engine: 1.6-litre, diesel Power: 133bhp, 260Nm Max speed: 123mph 0-60mph: 10.7s MPG (comb’d): 68.9 Emissions: 109g/km Residual values (three years): tbc

target buyers: Previous Cee’d owners, and conquest buyers – mainly young families.

the rivals:

Kia has sold 633,000 units of the Cee’d globally since 2006. But can the new car improve that? James Batchelor reports What is it?

What’s the spec like?

The first Cee’d, launched in 2006, was the most important Kia in recent years – if not ever. It launched the seven-year warranty and showed the Koreans could finally take on established brands. This new second album aims to beat the competition once and for all. It’s based on its sister car. the new Hyundai i30, but sports a unique look, and build quality is improved over the outgoing car.

The new Cee’d doesn’t go on sale until June 1, and, at the international launch, there was no mention of specific equipment. What we do know is that the car will be available in 1, 2, 3, 4, and 4 Tech trims, with equipment spread evenly across them. Prices are expected to range from £14,500 to the mid £20ks, while an estate called SW will arrive around September. A sporty three-door variant is expected later in the year.

Ford Focus, Volkswagen Golf, Hyundai i30.

What’s under the bonnet?

Key Selling Points:

Two petrols and two diesels. For petrol, customers will be able to choose between a 99bhp 1.4-litre and a 133bhp 1.6-litre, while an 89bhp 1.4-litre and a 126bhp 1.6-litre cover the diesel range. The best-sellers will be the 1.6-litre units – both are impressively refined and relaxed, but need to be worked to get the most from them. Our choice is the six-speed manual rather than the new six-speed dual-clutch auto.

1. Interior build-quality verges on being excellent. 2. Front-end is as bold as the Sportage SUV. 3. An appealing range – SW and three-door arrive later.

Deal Clincher: Seven-year warranty will be enough to sway customers to buy one. INSIDE

Kia has worked hard on making the interior match the class best. And they’ve succeeded.

What’s it like to drive? A good example of Kia being serious in taking on the sector’s best is its rear suspension layout. The new Cee’d uses an in independent set-up – just like the Focus and Golf – and makes a good job of making rides comfortable. Both transmissions are agreeable as is the generally tidy handling. However, the steering isn’t the most direct, but is perfectly acceptable.

What do the press think of it? Auto Express said that: ‘For 80 per cent of people for 80 per cent of the time, the new Cee’d could be exactly what they’re looking for’. Autocar concluded: ‘It would be hard to argue that not only do the likes of the Ford Focus and VW Golf still have an edge, but so too does the less flash but more satisfying Hyundai i30’.

What do we think of it? Kia has worked hard on making the new Cee’d one of the very best in the sector. And they can take comfort knowing their efforts have almost worked. The new Cee’d is a competent car, mixing excellent levels of build quality with a pleasing driving experience. But its mish-mashed looks of other C-segment cars lets the Cee’d down. However, once the SW and new Pro-Cee’d arrive, we’re sure it will make a better case for itself.

Kia Cee’d LOOKS

The front end looks very good, but the rest of the car is a fruit smoothie of Astra, Bravo, Civic and Leon.

ENGINES

Kia has kept the Cee’d engine range simple. There’s two petrols and two diesels.

34 | CarDealerMag.co.uk

themanual INSIDE

There’s a few ergonomic niggles, but overall the cabin is a stylish, well-built place to be. Five-inch multimedia screen is a real bonus.

LOOKS

DRIVING

The new B-Class employs Mercedes’ latest exterior look and comes with distinctive LED lights.

Sport models handle well and belie the car’s large-ish proportions. But customers should avoid 18-inch wheels.

Mercedes-Benz B-Class

the knowledge

Mercedes sold just over 34,000 units of the old B-Class. This new car aims to continue that. James Batchelor has driven it What is it?

What’s the spec like?

Mercedes claim the only thing this all-new B-Class shares with its predecessor is its name – and they’re right. While its platform will be shared with the all-new A-Class, the A and B ranges have undergone major restructuring with the A being more of a Golf-like hatch, and the B being more of a practical, premium MPV-like offering called a ‘sports tourer’.

While the engines are a little confusing, the B-Class’s specification choices are a paradigm of simplicity. The entry-level model is the SE which comes fully-packed with 16-inch alloys, Active Park Assist, Collision Prevention Assist, auto lights, and a five-inch multimedia screen; prices start at £21,295. Sport models wade in at £22,610 and gain ‘artificial leather’, black roof lining, sports suspension that lowers the ride-height by 15mm, and 18-inch bi-colour alloys.

What’s under the bonnet? The new ‘B’ is available in two petrols – B180 and B200 – and two diesels – B180 CDI and B200 CDI. Confusingly the 180 and 200 petrols are powered by a 1.6-litre unit in 121bhp and 155bhp forms respectively, while the 180 CDI and 200 CDI are powered by a 1.8-litre oil burner in two flavours of 108bhp and 135bhp respectively. All employ eco technology helping the new car to have CO2 emissions that are 26 per cent less than the old outgoing model.

What’s it like to drive? Our test car was the B180 CDI Sport model and, with its sports suspension, impressively masked its weight, size and generous dimensions even if the suspension set-up was firm. The 108bhp diesel unit, though gruff, was strong, perky and returns pleasing fuel economy figures. And thanks to optional 17-inch alloys, the ride was perfectly acceptable.

What do the press think of it? The Daily Telegraph praised the B-Class’s ‘classy cabin and brisk performance’ but did not like the ‘awful’ ride on 18-inch alloys, while Autocar returned a good verdict saying: ‘This car makes more sense, as a premium-brand family five-door, than the previous B-Class ever did.’ The magazine added: ‘The B-Class is a significant leap and has cut Stuttgart’s notional small-car deficit at least by half.’

What do we think of it? We were never fans of the old B-Class, deeming it to be challenged in the looks department and having too much crossover with the A-Class. This new car is a much stronger offering and does its best to match its premium positioning in the market. It’s pricey but we can’t see this being too much of a problem as the car both looks better and is built more sturdily.

Model: Mercedes-Benz B180 CDI BlueEFFICIENCY Sport Price: £33,110 (as tested) Engine: 1.8-litre, diesel Power: 108bhp, 250Nm Max speed: 118mph 0-60mph: 10.7s MPG (comb’d): 64.2 Emissions: 118g/km Residual values (three years): 43 per cent

target buyers: Existing owners and buyers looking for a premium MPV.

the rivals: Ford C-Max, Volkswagen Golf Plus, Renault Scenic.

Key Selling Points: 1. Good range of impressive and useful technology. 2. Two specification levels are appropriately equipped. 3. Quirky interior styling is teamed with good levels of build quality.

Deal Clincher: New B-Class’s emissions are 26 per cent better than the out-going model. CarDealerMag.co.uk | 35

forecourt. the knowledge Model: Peugeot 208 Price: From £9,995 Engine: 1.2-litre, 3cyl Power: 82bhp, 118Nm Max speed: 108mph 0-60mph: 12.1s MPG: 62.7 Emissions: 104g/km Residual values (three years): TBC, but expect them to be on a par with VW Polo

target buyers: Everybody. Maker wants second car buyers to consider it as well as recapturing the female market.

the rivals: Ford Fiesta, VW Polo, Kia Rio.

Key Selling Points: 1. Better spec than rivals. 2. Smaller on the outside, bigger inside. 3. Great choice of engines, including peppy 3cyl.

Deal Clincher: Cute looks and decent spec at a price on a par with key rivals.

KIT

This is the car tasked with bringing sales success back to Peugeot. James Baggott finds out if it’s got what it takes What is it? What many Peugeot dealers hope will be their ‘saviour’. The all new B segment challenger is aimed squarely at the sector-leading Ford Fiesta and the maker hopes cute looks, competitive pricing and a higher spec than rivals will be enough to tempt buyers to part with their cash. Sales of the 208 will ultimately make up a third of Peugeot dealers’ volumes and in 2013 the firm expects to shift 45,000 units.

What’s under the bonnet? A wide variety of petrol and diesel units, including a brilliant new threecylinder powerplant. Sales will be split 50/50 between fuel types. We tried the petrol 1.6-litre 155bhp, diesel 1.4 HDI, and the 1.2-litre three-cylinder petrol. The diesel was excellent, but our pick has to be the characterful 1.2-litre. With 82bhp and 118Nm of torque, it’s both great fun to drive yet economical too.

What’s the spec like?

What do the press think of it?

Slightly better than Fiestas on all trim levels. The most popular, taking 40 per cent of the sales mix, will be the Active. As standard on this model buyers get the all-important air con, touchscreen display, 15-inch alloys, cruise control, Bluetooth with audio streaming and USB. There are plenty of options too, notably sat-nav which unfortunately is a little fussy to use.

The Independent said: ‘The pick of the range, the 1.2-litre with 82bhp – a deep and tuneful engine note, a crisp response and a sackful of character. Add to this the curious dashboard and the 208 generates much to talk about!’ Auto Express said: ‘Stylish design and a premium cabin will be enough to make this new Peugeot a big hit’, adding the 1.2-litre version comes the closest to outshining its key competitors.

What’s it like to drive? Actually really rather good. Dynamically it’s composed and even in the lesser-powered models it’s good fun. The ride quality is impressive, but we did find the steering very light in town. The driving position is also strange with a tiny steering wheel that’s hard to position without obscuring the clocks. But overall it drives like a little French hatchback should do.

What do we think of it? We like it and it’s clear there’s a very good car in there waiting to escape (that’ll be the GTI). However, the design is a little fussy inside and out and the Ford Fiesta is a well-established and popular rival. Pricing will be key to its success and dealers will need to work hard on selling the additional spec to buyers considering rivals

Peugeot 208

Specification levels are aimed at being one better than key rivals. A key selling point for dealers to push.

LOOKS

Peugeot say 207 failed as women found it ‘too aggressive’. Hence a more cute design for 208. 36 | CarDealerMag.co.uk

TECHNOLOGY

Peugeot has introduced a new touchscreen system in Active models and above. It looks smart but is tricky to use.

themanual CABIN

No rear seats makes this quite a practical proposition. Add in leather and other goodies, and this is a high-end product.

STYLE

Roadster looks better than Coupe sister – and few cars will look the same.

ON THE ROAD

Roadster has been stiffened-up to compensate for lack of roof and a sporty driving experience. It’s one of the best Minis to drive.

Mini Roadster

the knowledge

Mini’s sixth model aims to recapture the traditional British roadster experience. James Batchelor takes it for a blast What is it?

What’s the spec like?

It’s yet another addition to the Mini range taking the model count to six. It’s the sister car to the controversial Coupe and is a two-seater that features a lowered windscreen by 13 degrees, and has a sporty driving experience in mind. Mini says due to it being built in Oxford, it can justifiably claim to be a spiritual successor to the traditional British roadsters of old.

There’s three models to choose from with the entry-level Cooper costing £18,020. That model boasts electric and heated door mirrors, rear parking sensors and air conditioning. The range tops out with the full-fat John Cooper Works at £24,860 – but few customer cars will be ordered in standard trims. A wide range of personalisation options including Mini Connected are available.

What’s under the bonnet? It’s all very familiar. Customers can choose from three petrols in the form of an entry-level 1.6-litre 121bhp in the Cooper, a characterful 183bhp 1.6-litre turbocharged unit in the Cooper S, and a throaty 210bhp 1.6litre turbocharged engine in the John Cooper Works. There’s also a frugal choice too in the form of the Roadster Cooper SD – a 2.0-litre diesel unit with 142bhp that emits 118g/km of CO2. Mini is not predicting the bestseller to be the diesel though, but the Cooper S model.

What’s it like to drive? It really depends upon customers’ view of how the Mini hatch drives. If they believe the hatch to ride too firmly, they won’t enjoy the Roadster as it has a stiffer body and harder suspension. We drove the Cooper S and enjoyed it. The Roadster is tremendously agile, indecently quick and communicative. But we’d stop at it being a traditional British sports car. For us, the Mazda MX-5 is a little more focussed, but the Mini is not far behind the Japanese car.

What do the press think of it? The Independent said ‘bloated Countryman apart, Minis are always fun – and the Roadster provides more fun than the rest’, while Car Magazine felt whether customers will choose the Roadster over the Convertible comes down to ‘whether you value a bigger boot and the latest spring/ summer 2012 catalogue look over four seats and more refinement’.

What do we think of it? It’s little surprise Mini has produced another cracker here. As a Mini Cooper S hatch owner, I can openly say the Roadster is on par if not better than its hatchback sister car. The Roadster is a whole heap of fun, and is sure to fly out of the showrooms with buyers deeming it to be the latest fashion statement. Does it revive the traditional British roadster? No. But does it offer sports car thrills in a fashionable package with a good dose of practicality? Yes, most certainly.

Model: Mini Roadster Cooper S Price: £20,905. Engine: 1.6-litre, petrol Power: 183bhp, 260Nm Max speed: 141mph 0-60: 7.0 secs MPG (comb’d): 47.1 mpg Emissions: 139g/km Residual values (three years): 50 per cent

target buyers: Mini owners who want a second car, and two-seater sports car fans.

the rivals: Mazda MX-5, Audi TT Roadster.

Key Selling Points: 1. Mini’s first-ever two-seater roadster. 2. Wide range of interior and exterior options. 3. Range includes super fast JCW and frugal Cooper SD.

Deal Clincher: The only mainstream two-seater sports car made in Britain. CarDealerMag.co.uk | 37

Feature.

Machines GREEN

Big bhp and economy donâ&#x20AC;&#x2122;t really go hand in hand, but the latest crop of super saloons are trying to change that. We pitch five brutes head to head to see if theyâ&#x20AC;&#x2122;ve managed it

Mercedes E63 AMG

BMW M5

38 | CarDealerMag.co.uk

thanks to: Rockingham Motor Speedway Pictures: matt richardson

ike it or loathe it, green cars sell. They sell because consumers don’t feel as guilty changing their vehicle every three years if the new one they’re buying is kinder to the environment and makes trees smile. It’s not just a trend in the mundane hatchback segments either, as more and more manufacturers are shoe-horning more efficient engines under the bonnet. Whether that’s petrol, diesel or hybrid, every manufacturer is doffing their caps to green motoring. And that means that bastion of uneconomical, nasty-to-the-ether type of car – the super saloon – is going under the microscope too. Super saloons stir a special part in the souls of petrolheads because, on the outside, they look normal.

Petrolhead’s neigbours think they’re driving around in a responsible diesel. But they’re not – they’re driving around in a four-door supercar that can easily carry a week’s worth of shopping from Waitrose. And the kids. And the golf clubs. At warp speed. Everywhere. But, with manufacturers making super saloons kinder to the planet, does that mean they’re not as much fun? To find out, we brought together five for a shoot-out at Rockingham Motor Speedway. First up is the BMW M5. Recently launched, this new M5 ditches the old car’s wonderful er… we mean irresponsible, V10 and has instead plumped for a twin-turbocharged 4.4-litre V8. It can manage 28mpg, it churns out 238g/km of CO2, but still packs 560bhp. Next up is its nemesis – the Mercedes-Benz E63

AMG. Last year the three-pointed star ditched the fabulous… sorry, hateful 6.2-litre V8 naturally aspirated V8 and replaced it with a new 5.5-litre V8 twin-turbo. Showing that impressions still count, the Germans left the 63 badges on. We’ve also got a couple of hybrids too. Porsche’s Panamera S Hybrid (okay, it’s a hatchback not a saloon, but it’s the closest Porsche has, okay?) and for a bit of civility, the world’s fatest accelerating hybrid in the world – the Infiniti M35h. And to show the world is not going completely mad, we’ve also brought along a dinosaur. Lexus IS-F’s 5.0-litre four-door laughs in the face of the green man, and drinks petrol as if it were Earl Grey. We’ve also chatted to some dealers about what it’s like to sell these brutes in strained economic times. Enjoy.

Porsche Panamera S Hybrid

Infiniti M35h

Lexus ISF

CarDealerMag.co.uk | 39

Feature.

BMWM5 B

MW likes to do efficiency these days. That means big, brash and loud is out and in its place comes clever use of technology to excite drivers. That means big changes for the marque’s loudest cars, like the M5. The 5.0-litre V10 of the previous generation has been killed off, and in its place is a smaller 4.4-litre V8. Before you get too upset though, things aren’t as bad as they seem. Yes, the powerplant may have lost a few cylinders and cubic capacity, but thanks to a brace of turbochargers this new lump is actually more powerful and more efficient (there’s that word again) than the engine it replaces. How much more? Well, power is up 10 per cent to 560bhp and torque increased by a whopping 30 per cent to 680Nm. Ok, so that’s a little off the Merc’s 800Nm of pull, but still mighty impressive. It all helps the new M5 hit 60mph in 4.4 seconds and crack on to 155mph. Equally impressive is the improvements at the pumps – fuel economy is up from 20mpg to 28mpg while emissions have been slashed 112g/km to 234g/km. A major achievement. But to be honest, we don’t really care about the latter. What we really care about is does it feel as good as the V10? And the simple answer is no – it’s better. There’s no denying the M5 is a big car, but it feels the smallest, most compact here. It’s easy to jump in and drive – and drive fast. It’s flattering on the road, and on the track hugely exciting. With the traction control engaged, there’s just enough slip to put a grin on your face, yet save you from the kitty litter. With it off, it’s a tail out showboater. 40 | CarDealerMag.co.uk

the knowledge Model: BMW M5 Price: £73,040 Engine: 4.4-litre, V8 twin turbo Power: 560bhp, 680Nm Max speed: 155mph 0-60mph: 4.4s MPG (comb’d): 28 Emissions: 234g/km Verdict: It’s got BMW’s most potent powerplant ever, sounds amazing and is as easy to drive as a 520d. An easy winner.

dealer’s view The M5 has a fantastic following. When the new car was announced last year, we received a tremendous amount of interest and have confirmed a large number of those. It’s a very different proposition from the M3. That car is passionate and about high days and holidays – the M5 is more of a work-horse. I think it would be a backward step if manufacturers like BMW did not embrace more green technology in the future. Alan Smith, Wood of Bournemouth That 4.4-litre engine sounds brilliant too. Like a mini Bugatti Veyron it angrily sucks in air and spits out a venomous bark from its quad pipes. Equally thrilling is its rapid DCT seven-speed gearbox. Far superior to the Merc’s set up, this twin clutch box fires through ratios with a ferocity only seen before on a Ferrari 458. Inside it feels a lot more modern than the Mercedes – its closest rival here – with brilliant seats, a superb driving position and wonderfully direct and supple steering. Tech levels are understandably high for a £73k car with a head

up display, DAB radio, 19-inch alloys, night vision and lots more. But it’s not the kit or space that puts the Beemer in the number one spot here – it’s the driving experience. This is one mighty M model that’s simple to jump in and drive fast. Masses of electronic trickery help, but that absolute peach of an engine (BMW’s most potent ever, no less), that visceral noise and that smile you’ll find hard to wipe off your face every time you drive it help it secure the top spot. James Baggott

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f you asked a bloke to build a car – the sort that drinks real ale, has a hairy chest, likes football (maybe rugby) and birds – you could probably guess what you’d end up with. It’d have a big engine. Actually, scrap that. It would have a MASSIVE engine. It’d need to be rear wheel drive. It would need to have lots of toys to impress his mates and confuse his wife/bird/life partner. And it would need to look flash. Oh, and probably be German. Let us introduce you, then, to the car that Dave Down The Duck built: The Mercedes E63 AMG. Built by someone with more testosterone than an end of school prom, the Merc is the automotive equivalent of an erection. Let’s talk numbers first. Under the bonnet is a 5.5-litre V8 with two turbos. It produces a frankly ridiculous 557bhp and, with the AMG pack (£6,495) fitted to our test car, 800Nm of torque. Which is about the same as a Harrier Jump Jet. Probably. It will hit 60mph in just four seconds and is limited (quite heavily) to 155mph. Oh, and it’s got seven gears. Even the price tag is whopping – off the shelf it’s £74,695, but our test car with what appears to be every optional extra box ticked, weighed in at £91,245. And what does all that mean? It means this is one scary super saloon. Not only does it sound like a Spitfire at full chat, but it’s football hooligan lairy. At 70mph on a wet road it has the grunt to spin up the rear wheels. In fact at any speed, on pretty much any road, it has the power to spin up the rear wheels. Which is scary and smile inducing in equal measures. On the road, traction control fully engaged, it flickers its warning lights

the knowledge Model: Mercedes E63 AMG Price: £91,245 (as tested) Engine: 5.5-litre, V8 Power: 557bhp, 800Nm Max speed: 155mph 0-60mph: 4.0s MPG (comb’d): 28.8 Emissions: 230g/km Verdict: Bonkers fast, bonkers sound and bonkers price tag. It finishes second as it’s harder to get to grips with than the brilliant Beemer.

dealer’s view The new E63 with the 5.5-litre V8 is certainly a step in the right direction for improved efficiency, but we have found that is not at the top of E63 owners’ lists. Owners very much know about the car as soon as they come into the dealership, but we do have to carefully qualify customers before we let them have a test drive. Because the car is such a great package, it pretty much sells itself. Mark Hannon, Mercedes-Benz of Southampton on the exit of even supermarket car parks. On the track, with the safety nets disengaged it’s weapons grade bonkers. But bloody brilliant. Inside, the switchgear – and the fact there’s a Boeing-load of it – takes a while to get used to, but it’s incredibly comfortable. That’s probably something to do with the heated, cooling and massaging seats. The seats are so clever they even inflate the side bolsters to hold you in place when you go round corners. And talking of clever, that’s one thing that

e63AMG

gets up my nose a little about the Merc. It’s all a little bit too smart. No one wants their car to be cleverer than they are and at times the Merc certainly feels a bit too Skynet for my liking. However, as super saloons go, this Merc certainly has the right ingredients. It’s stupidly fast, sounds amazing and is long-haul comfortable. It’s just a little tougher to get to grips with than the Beemer, and for that reason it finishes second here. James Baggott

CarDealerMag.co.uk | 41

Feature.

LexusIS-F L

exus makes boring, sensible cars right? The sort with hybrid engines and flashing lights inside that tell you how kind to the planet you’re being. Yes, that they do. But thankfully, someone at the manufacturer still has some petrol running through their veins, because this bruiser could only be conceived by a driver’s driver. Meet the IS-F – the oldest car on test. A car that can reach an electronically-limited 168mph, but yet still fit in the golf club car park. That’s just what’s so appealing about the IS-F. Infiniti aside, it really does have a dual personality. Park it in the city and no-one will hate you for owning a V8 sports car because, to all intents and purposes, this is a four-door saloon with a diesel engine that spends its days in Slough. Of course, we all know it’s a V8, but, let’s face it, you have to be a complete anorak to notice its flared wheelarches, lightweight forged 19-inch BBSs alloys, and exhausts irritably piled on top of each other. In many ways, it reminds us of the Lotus Carlton in that it appears to be a very normal saloon but has been fed entirely on a diet of stout. It that respect, it’s a traditional ‘Q-car’. There is an old school persona with the IS-F, too. Its 5.0-litre V8 has no swish dual, multi, bi, twin turbo business – just five litres of cylinders and pistons, and no guilt for being anything other than environmentally unfriendly. It throws up CO2 emissions that total 270g/km and mpg? Well, you’ll be lucky if you get 24 to the gallon. It’s not just the outside that has a dual personality, but the engine does too. Keep the IS-F below 4,000rpm and it behaves very much 42 | CarDealerMag.co.uk

the knowledge Model: Lexus IS-F Price: £58,416 Engine: 5.0-litre, V8 Power: 417bhp, 505Nm Max speed: 168mph 0-60mph: 4.8s MPG (comb’d): 24.4 Emissions: 270g/km Verdict: A little old in this company, but shows the Japanese can do a fast, purposeful, super saloon when they put their mind and soul into it.

dealer’s view The IS-F is a well-kept secret, selling in small numbers, with many customers going for the better-known marques – and that’s a shame. The IS-F buyer is not one type. They do tend to be men aged between 30 and 50, though, and they usually know a lot about the car. They’re not worried about hybrids either – they can afford the taxes that come with this car. James Boughton-Thomas, Listers Lexus, Lincoln like any normal IS – refined, polite, sounds unperturbed and really quite stately. It even rides like a normal IS. But then stamp on the throttle and at 5,500rpm the Lexus’ 505Nm of torque kicks in. The car sits back on its rear wheels, and the engine changes from Alan Whicker to Alan Sugar. Ride the revs to the limiter and the V8 thunders its way to 60mph in just 4.8 seconds, and has to be physically restrained at 168mph. The interior verges on the naff with a cheapfeeling steering wheel, and a touch-screen sat-nav

that does its best to muddle your brain. While the passionate ones among us don’t really care for that sort of thing, to be an all-conquering super saloon, the combination of stunning performance and quality fixtures matters. The IS-F claims the last place on our podium because despite its age it still excites. The biggest shame, though, is that we fear there won’t be many more saloons so hard-fisted, so crude, yet so dignified in the future from Lexus. Like Tories with any credibility, it’s a dying breed. James BATCHELOR

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pANAMERAS HYBRID O

f the two hybrids tested here, it was the Porsche that was the most proud of its green credentials. On the flanks there’s some chromium text in an elaborate font, and on its behind, proudly below the Porsche badge, it states ‘Panamera S Hybrid’. Even the rev counter bears a hybrid logo. But fear not. A quick glance at this car and you’d think it was any other Panamera, and don’t forget those hybrid badges are delete options. I can’t quite believe I’m saying this, but I’m starting to develop a little soft spot for this four-door Porker. It certainly does its level-best to lose a lot of admirers, but the more I look at it and the more I drive it, the more I like it. My affection for the car is only small, mind. But the affection is there. That’s probably due to a child-like love for the colour. Among the dreary greys, off-greys, and silvers of the other cars, it was only the BMW and the Porsche that brought a bit of sparkle to an otherwise very miserable and damp Rockingham. Costing a cool £2,516, Aqua Blue made the Panzer look a lot sleeker and less dumpy than other colours Porsche insist on painting their press cars. But the real reason for my growing affection for the Panamera is the interior. First, the interior ambience; it’s hardly an original observation to make but the quality is just so damn good. Everything is beautifully put together; the controls all logically placed; the detailing so wonderfully thoughtful. Up front, in a pair of squashy chairs, you really don’t think there’s another set of doors and a Austin Maxi-type hatchback behind you. Everything seems just so right. And don’t think the back passengers get the raw deal either. In the back it’s like you’re cocooned in

the knowledge

Model: Porsche Panamera S Hybrid Price: £86,396 Engine: 3.0-litre, V6 hybrid Power: 380bhp, 580Nm Max speed: 167mph 0-60mph: 6.0s MPG (comb’d): 41.5 Emissions: 159g/km Verdict: Looks like any other Panamera with a gas-guzzling engine, but returns 42mpg and manages 167mph.

dealer’s view Hybrids make a lot of sense in fast executive saloons. It is a big heavy car that suits an economical powertrain. But as a sports saloon? I don’t think so. There’s little excitement and the cost is astronomical – I can’t see the benefit over the much cheaper diesel version. The residual should be interesting as it is a big unknown. But for people like me, I’m a little worried about selling the car when they come available. Philip Raby, Porsche specialist a very expensive men’s toiletries bag. The leather seats swallow you up and aluminium trim (that’s £526 to you, sir) stretches from your elbow right to the cabin up-front. Sitting in the back feels like you’ve encroached into a Porsche boudoir. A super saloon has to have skills in the driving department too – and the S Hybrid doesn’t disappoint. Putting the rather near silent start-up and lacklustre ‘tick-over’ (thanks to the 47bhp electric motor, no less) to one side, it’s one fine car to drive. It’s no horizon stormer – it’s the slowest to 60mph after all – but it gets on with

the job in a dignified way. The eight-speed Tiptronic S transmission assists the eco four-door to a frankly amazing 167mph. But the best thing about this car is that it retains many Porsche characteristics in its driving style. The driver sits in front of a bolt-upright steering column in the best 911 tradition while peering out over a voluptuous bonnet. Throw in tremendously tactile steering, and a rear end that likes to wag, and all of a sudden a car that can manage 42mpg becomes a riot. James BATCHELOR CarDealerMag.co.uk | 43

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infinitiM35h S

ome of you may be thinking why on earth we have pitched this posh Nissan against super saloon royalty like the M5? Well, we’ll tell you why – it’s because the M35h is the ultimate embodiment of manufacturers dutifully reducing the environmental damage super saloons cause, but not at the cost of performance. Let me give you some numbers. Under the sculpted bonnet lies a throaty 3.5-litre V6, and it’s coupled to an electric motor helping the posh four-door push out a total of 369bhp. That powerplant also helps the car to crack 60mph in just 5.3 seconds, and on to an M5-like 155mph. And it returns 40.4mpg on the combined cycle, and emits 162 grams of nasty carbon dioxide. In fact, as we write, Infiniti is making an even more responsible M35h ready for sale in the UK that emits 159g/km of CO2. Doesn’t sound impressive enough? Well how does the M35h being the world’s fastest accelerating hybrid in the world sound? Rather good doesn’t it, and it makes the Infiniti the joker of the pack here. That’s all thanks to the V6 unit under the bonnet. It’s a perfectly docile lump until you switch the car into sport mode and prod the throttle into the soft carpet. It then roars in the best Nissan V6 traditions, and picks up speed with alarming alacrity. But, switch the car into eco mode, and the M35h becomes quite a different machine. With what can only be described as a gastric band around the throttle pedal, the driver is prevented from any sporty driving. Prod the throttle in this model and it tightens up, making the driver’s calf muscle ache painfully.

the knowledge Model: Infiniti M35h Price: £46,840 Engine: 3.5-litre, V6 hybrid Power: 369bhp, 350Nm Max speed: 155mph 0-60mph: 5.3s MPG (comb’d): 40.4 Emissions: 162g/km Verdict: Super in terms of environmental credentials, not necessarily super in terms of being a performance saloon.

dealer’s view The car has been tremendously popular among our customer base. In fact we’ve sold out of our allocation and we now have to order them – even my mum has one! The car appeals not just to Infiniti owners, but also to Mercedes and BMW drivers too as the M35h is still a fast saloon but the running costs are significantly lower. I would like to think the fast saloon segment moves more towards hybrid in the future. Craig Jervis, Infiniti Centre Stockport The V6 is mated to a 67bhp electric motor – and that alone has 270Nm of torque. Keep the car in eco mode and the car will constantly transfer its attentions between the engine and the electric motor to return the best fuel-economy, and it can run at speeds of up to 60mph using solely the electric unit. Switch into sport mode and turn off the traction control, and the M35h can entertain you with some sideways action too. While the throttle is decidedly bi-polar, the steering is anything but. It lacks the tactility of the others, but the M35h’s weighty steering is still

suitably direct – and the wheel is heated. The steering wheel is not the only gadget. Inside, there’s a wealth of extra kit including acres of soft brown leather, a rear sun-blind, and a Bose stereo system that has 16 speakers – four of which reside in the two front seats. The inside is topped off with wood trimmings to give it that all important European flavour. The M35h is certainly food for thought – and shows the future direction for super saloons. But its sober looks deny it a higher place here. [CD] James BATCHELOR CarDealerMag.co.uk | 45

Feature.

Testing

times Ferrari and McLaren’s rivalry is well documented on the track – but when the firms’ respective supercars went head to head on the pages of motoring magazines, their desire to win at all costs boiled over. Claims of test manipulations, secretly tweaked press cars and teams of engineers shipped out to assist were rife. But do buyers really care? James Baggott reports

t was the battle supercar fans across the world had been waiting for: Ferrari’s 458 Italia against the all-new pretender from Woking, the McLaren MP4-12C. For years the arch rivals had battled it out in Grands Prix around the world, but the fight would now take place in entirely new surroundings – on the pages of motoring magazines. However, for Ron Dennis and his ultracompetitive outfit, things didn’t quite go to plan. When the UK motoring mags were finally allowed to pitch the 12C against the 458, the results didn’t make for comforting bedtime reading. Yes, the reports from the likes of Top Gear, Evo and Auto Express lavished praise on the new McLaren, but when it came to delivering that all important verdict on which those lucky enough to afford them should buy, the points fell in the Italian’s camp. But delve a little deeper behind the scenes of those reviews and it doesn’t take long to unearth complaints about the validity of the tests. Claims of trick cars, teams of engineers turning up to fettle the test machines (from both Ferrari and McLaren), and even allegations potent fuel concoctions for track test purposes was insisted upon are rife. And with most of the motoring titles placing the Ferrari before the 12C, it’s little surprise that those at McLaren were the ones who seemed most upset. And, judging by a recent interview, it seems some at McLaren are still fuming. Some like sales and marketing director Greg Levine. ‘Give me a like-for-like Ferrari – a normal one, that a customer has on the road – and I will be very interested to see the outcome of that test,’ he told Car Dealer during a visit to the McLaren Technology Centre. ‘Let’s put it this way, I will never put a car into a comparative test unless a car is dyno’d and 46 | CarDealerMag.co.uk

weighed. Our car is legitimate. I am willing to take on any car, at any track, at any time – but all I ask is that we are given the exact car that our rivals sell to customers. ‘And if they believe that is the car they sell to customers, I want to dyno it. I want to dyno the car to see that it is and I want to weigh the car. If that’s the case then it’s any test, any time, any day. I am more than happy and more than confident in our car.’ It appears we touched a nerve. But when the results of these tests can mean so much, it’s little surprise passion boils over. So what do Ferrari say? Well, on the record, very little indeed. When motoring journalist Chris Harris wrote a scathing blog on American website Jalopnik accusing the Italians of many things, the manufacturer chose not to respond. Harris claimed that Ferrari had turned up at tests in the past with two cars – ‘one for straight line work, the other for handling exercises’. His rant went on to accuse the maker of manipulation and media management. It was picked up by fans of the brand across the world and within days had been shared with tens of thousands of people on social media sites. The diatribe only served to fan the flames surrounding the McLaren vs Ferrari tests. SILENCE The fact Ferrari remained silent following the blog’s publication could be taken many ways. Was it all true and they simply didn’t want to admit it, or were they taking the moral high ground and not dignifying it with a response? Who knows. What we do know is that it’s not just Harris who has experienced difficulties sorting out tests with both supercar manufacturers. For this feature we contacted a number of road testers on some of the leading car magazines in the country and all told us tales of varying degrees of meddling from

the two supercar makers. None of the magazines’ writers would be named – for fear of ending up in the manufacturers’ bad books – but off the record the stories were just as worrying. What was really interesting was the fact it wasn’t just Ferrari they claimed were ‘controlling’. They told us McLaren often insisted on specific test procedures for magazine features too. One road tester for a national car magazine – who understandably wanted to remain anonymous – told us he’d faced major problems organising a twin test between the 12C and 458 from both camps. ‘I don’t think they’re any worse than each other,’ he said. ‘Both are fiercely competitive and protective of their cars. We had teams of engineers from both firms come along to our test. ‘Unless you test two customer cars it’s impossible to know what’s been tweaked and what hasn’t – and that’s the same for a Skoda, just as it is a Ferrari, or a McLaren or any other car tested by a motoring magazine. If journalists don’t think cars are specially fettled for press tests then they’re a little wet behind the ears if you ask me.’ So it’s not just the Italians that appear a little over protective when it comes to motoring magazine tests then? ‘Oh god no,’ added the magazine writer. ‘McLaren can be just as bad when it comes to stipulations.’ Back to McLaren’s Levine on that one: ‘We use our standard tyres on our cars for all tests. We’ll send a team out to assist the journalists and stuff like that, yes. But I don’t want to get into a debate in terms of Ferrari and McLaren – all I’m interested in saying is that we are confident enough that if you give us a track and give us a standard customer car, we’re happy to take part. ‘I don’t want to sound like someone with sour grapes, but go read Chris Harris’ blog. He’s a neutral journalist. See what he says.’

Greg Levine McLaren sales and marketing director on the MP4-12C How is the sales process for a 12C different? The McLaren experience is very different. It is intimate. The owner of the business is very much involved in the transaction. The average McLaren customer is not making a rational purchase – it is a very emotional one. They don’t really need the car, they buy it because of the way it makes them feel. The people buying McLarens are the intelligent man’s sports car purchasers. What does that mean? It means they are absolutely fanatical. They don’t just want to buy a car, they want to engage with the brand. If we do something in the UK, the US knows about it in seven days – it is not a group of customers who interact just in the UK, they interact globally. They talk to each other.

‘‘

Delve a little behind the scenes of the reviews and it doesn’t take long to unearth complaints about the validity of those tests.

Are your dealers making money? Yes they are. I wouldn’t quote return on sales to you – that’s difficult to say as we have a lot of start-up investment. But if you put aside that they’ve had a very good start in terms of baseline profitability. But then we’ve just launched. We don’t have many dealers either so margin retention is very good. Has that helped dealers stay profitable? The strategy for us was always to have fewer dealerships. We have three in the UK and they’re all going well. The business model itself is not very capital intensive. I set up West London Audi and that was the biggest Audi dealer in the world, a huge investment. If you don’t sell a certain amount of new and used cars there you lose your pants. Whereas, with us, you go to One Hyde Park, it’s small. We are partners with Sytner in Manchester, Rybrook in Birmingham and Jardine in London. Any more planned for the UK? It depends. We are launching a range of sports cars and that includes an entry level model. That will mean an evolution of the dealer network. We aren’t looking for new partners right now though. Are sales volumes in line with targets? They are going very well. The market is difficult, especially in Europe. Southern Europe is tough. But in terms of overall volumes, we are tracking in line with plan. But we have had to revise that plan because of the economic situation, especially in Europe. The UK has been stable. We are selling around 150 cars a month globally. What are your thoughts on dealers that buy up orders and sell them for a profit? That’s the game. It’s the way it works. You can’t really police it too much. It is a really important part of how the sports car business operates. But you have to understand it. The real problem is the customer does not get the brand experience. There are big grey markets around the world and we’re trying to avoid them as best as we can. CarDealerMag.co.uk | 47

Feature. We asked Ferrari North Europe to comment on the claims. It decided not to answer all our questions directly and instead issued a statement from the factory. ‘We know that people often wonder how Ferrari can make such wonderful products, and that, maybe with a bit of envy, some people claim or create rumours that Ferrari press cars are not representative of production cars. Of course, these rumours are completely untrue,’ said the Ferrari spokesman. ‘We do not feel the need to address these rumours directly, but in order to protect the commitment and passion of the people who work at Ferrari, we may consider referring individual circumstances to our legal department if necessary.’ Like it or loathe it, car fans listen to what magazines like Top Gear, Car and Evo say about these machines – and a win can not only be something for the respective manufacturers to brag about, but can often lead to sales success too. Even McLaren’s Levine admitted that buyers of the MP4-12C are so fanatical about learning everything they can about the car before they buy it, they digest as much information as they can – from any source they can find. ‘McLaren buyers don’t just want to buy a car – they want to engage with the brand,’ Levine explained. ‘They want to know the story, they want to write to you, they spend hours on blogs talking about what they do with the brand. They are not just a group of customers who are interacting only in the UK either, they interact globally. They talk to each other.’ With a rivalry that spans decades in F1, it’s little wonder that tempers have frayed between McLaren and Ferrari off the track too. As one road tester we spoke to put it, ‘it’s what happens when

you have a car company run by a race team – the problem is they always want to win’. But at the end of the day, do buyers really care? Manufacturers might think they do, but do they really? ‘I don’t think they do,’ said one independent prestige dealer, who sells them both. ‘Most buyers who can afford the £200k plus price tags are buying one of each anyway – they don’t choose between the two, they buy one in red from Ferrari and one in orange from McLaren and park them up next to their other 10 cars in their underground car park.’ And prestige independent dealer Clive Sutton – who has sold both 458 and 12C models – added: ‘95 per cent of the people reading those magazine tests won’t buy either of the cars. They’re fans

who read them, not real buyers. The buyers simply want the latest supercar and what’s written in the magazines doesn’t really matter.’ Another supercar dealer from the Midlands added: ‘What this is all about is a rivalry between two companies that has been going on for years. They desperately want to beat each other and it doesn’t matter whether that’s on the race track, on the road, or in a pub quiz. My message to them would be simple: Your buyers don’t care. Just get on with making more great cars – because people want to buy them whatever.’ Can’t say fairer than that… problem is, will the desire to beat one another at all costs mean Ferrari and McLaren will never realise that’s the case?

‘What the press think doesn’t matter’ McLaren’s flagship London showroom opened in June last year. Operated by Jardine, general manager Sinan Omer was moved across to head up the business from the group’s Seven Oaks Aston Martin dealership. Here he talks to Car Dealer. How did the 458 v 12C magazine tests affect sales? Did it matter McLaren didn’t win them all? It was clearly the benchmark test people wanted to see. But, in my opinion, they are totally different cars. The 458 is fantastic, let’s not deny that, but you buy a Ferrari for soul and passion reasons. McLaren have come at this from a technological perspective. Perhaps we’re not as soulful or energising as they are, but in terms of driveability and the car’s capability, it excels. Later press articles showed the McLaren is by far the superior performance car. Do customers care what magazines say? Ultimately no, otherwise why would we have made 100 sales and taken orders that stretch in front of us? Clearly the testers have a measured 48 | CarDealerMag.co.uk

talking about the cars, and YouTube etc. So it does matter in some respects. So, you’d say to the manufacturers: Don’t panic, buyers will buy anyway? There are cars that have had very bad press and have still been sold and enjoyed. In truth, these people take a measured approach and those customers who have bought have done so for their own reasons, not the opinions of the press. view and opinion. But what we know is that customers who have had both cars are sold on the McLaren because of the ownership experience. It’s comfortable and usable every day and offers much more than a car you’d just take out on a Sunday. If you don’t think it matters whether cars win magazine road tests or not, why do you think Ferrari and McLaren place such emphasis on winning them? The customers certainly read the material. I think the way the press works and the availability of these opinions now is wider than it was five or 10 years ago with websites

Are these buyers passionate about McLaren or do they just want the latest, greatest sports car? It’s a little bit of both. Today it could be the 12C, tomorrow it might be the 458 Spider, and next time it will be our 12C Spider. They are transient. But in the middle ground, we have the genuine customers who are buying because of what the car can do and the brand values. Sales wise, how are things going? We delivered our first in London on August 7 and have just passed 100 units. Things are going really well.

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Feature.

driving the mp4-12c T

he battle on the race track and extremely similar price tags, make the Ferrari 458 Italia and McLaren MP4-12C appear well placed rivals. But in reality, the cars are very different beasts indeed. Granted, those buyers lucky enough to have £200k sitting around to spend on a toy will be considering both, but which is better makes very little difference to these buyers. These buyers want to own the latest supercar and whether that’s from Ferrari, Lamborghini or McLaren makes little difference – they usually only plan to drive 1,000 miles in them or until their next toy turns up. Which is better is usually only of interest to the willy wavers at manufacturer HQ. Let’s be honest, a What Car? road test winner’s badge is hardly likely to sell more 458s or 12Cs is it? Independent supercar seller Clive Sutton likened these supercars to luxury watches – you don’t really choose one watch over another because they’re ‘better’ than each other, you pick the one you like the look of, he explained. And let’s be honest, both the Ferrari and McLaren are incredible machines. Magazine road testers purely pick a winner because they have to. I’ve been lucky enough to drive both and if it was my money, I’d be opting for the 458. Why? Well, I just like the look of it more. Both are staggeringly brilliant. Both handle as you’d expect a supercar to handle. Both sound stunning. And both make

you smile ridiculously when you turn the key. But for me the 458 is the prettier car. But then that’s purely my opinion. That’s not to say I didn’t enjoy my time behind the wheel of the 12C. McLaren invited us to drive the car on the road and at Top Gear’s Dunsfold test track and it was an incredible experience. The 3.8-litre twin turbo charged engine is a corker. Not only does it sound superb, but the performance is mind-boggling. In the right hands (not mine), it will hit 60mph in 3.1 seconds. A quarter of a mile is despatched in 10.9 seconds at 135mph. Top speed? 205mph. That’s all thanks to some 592bhp and 600Nm of torque. But the figures never prepare you for the savagery of the delivery. It’s monstrous and intoxicating in equal measure, but so easily

accessible. The whole car is just so easy to drive – it feels more like an uber Porsche 911 than a super car. The dash wraps around the driver, you feel tucked in under the wheel and cosseted. Placing the car is simple and it’s easy to feel at home very quickly indeed. In the 458 it took me a while to get my bearings, it feels bigger on the road than the 12C. The McLaren has little drama about it. It really is simple to climb in and pilot it around busy town streets without fear of kerbing an alloy or scraping the nose. Another delight is the car’s split persona. With the traction control and handling settings turned down, it’s a sedate and usable everyday car. But flick everything off and it transforms into a brutal track attack weapon. While I can understand the rivalry between Ferrari and McLaren, and appreciate their respective racing programmes means second is first loser in their eyes, the fact McLaren has managed to take on the established brands in such a fashion with its first car is an incredible achievement. Yes, some journalists might prefer the 458, but you know what? In the grand scheme of things that really doesn’t matter. McLaren has, from nothing, built not only a whole new car, but a whole new car company that Britain can be proud of. And when you think about it, that’s more of an achievement than winning a handful of magazine road tests… [CD] CarDealerMag.co.uk | 51

Feature.

1-0 Baggott

Ok, so the editor may have struck it lucky with the Peugeot, but that hasn’t stopped him bragging about being ahead of TV’s Mike Brewer in our challenge to raise money trading cars

£50

carchallenge

James’ story

ight, this won’t happen very often, so let me just gloat for a few moments. Not only have I managed to sell my car for THREE times what Mr Wheeler Dealer managed, I managed to do it all without the hassle of advertising it anywhere too. That puts me one-nil up against, and these are not my words but the Brewster’s, the ‘best car dealer in the UK’ – and that feels good. Right, gloat over, here’s what happened. I’m under no illusions here that I drew the very long straw. The Peugeot 406 that Marshall’s chief executive Daksh Gupta sourced for us was a corker. For £50 it was an absolute bargain and even my mum could have made a healthy profit on it. First stop for the W-reg diesel sipper was Matt the Mechanic in sunny Portsmouth. I asked him to give it the once over and give me an idea of what work, if any, would be needed to get a year’s ticket on her. After two weeks (Matt’s never one to hurry), I got the call that she’d fly through an MOT. Good news. Just as thoughts turned to advertising it, I got a call from regular magazine snapper Matt Richardson. And old school friend of his had just had his car written off. An unfortunate accident with a tractor, I think. Anyway, he was awaiting a cheque from the insurance company and wanted my 406. ‘I’ve told him it’s a good one and he trusts my judgment on cars so he’ll have it – what do you want for it?’ asked Matt. Having used Trader Media Group’s handy iPhone profit indicator app for dealers I knew it was worth at least £1,500. 52 | CarDealerMag.co.uk

So, for an easy sale – and to make up for the fact I didn’t have to advertise it – I said I’d let the old smoker go for £1,400. A few phone calls later and Matt said it was a goer as long as I could get a year’s MOT on it. Nice. A swift call to Matt the Mechanic and a few days later she’s fully road legal for another year with three advisories to her name. Matt The Snapper’s mate, Jason, arrived a few days later

‘‘

Even my mum could have made a healthy profit on the Peugeot.

and handed over a wad of notes in a tin and drove off into the sunset (well, pouring rain, but sunset sounds better). Never has a sale been so easy – or one-nil felt so good! Now the hunt begins for the next motor. I’ve already got a few irons in fires, but nothing has come off just yet. I’m pretty sure I won’t be making as much on my next car, but still, a £1,000 lead over Brewer is not to be sniffed at… he is the best car dealer in the UK after all!

Mike Brewer isn’t pleased he’s trailing the editor in our charity challenge to trade cars for BEN

Mike’s story

o after moaning about being stitched up by Baggott with 50 quids’ worth of Renault Clio 1.2 last month (or Nicole, as I’ve nicknamed her), it was time to turn the French supermini into some cash. Joking aside, after Mr Car Dealer dropped the Clio off at Brewer Towers, I braved the fag-burned interior and took it for a decent drive. Despite 88,000 hard miles, no service history and a heavy

clutch, Nicole actually drove a lot better than some modern cars. The 1.2 seemed to sip fuel too. My plan to turn the French floozie into readies was first to get rid of the layer of Gosport grit and find out what horrors or not hid underneath. It seemed to wear its 14 years well, but after a good wash and wax there were the usual parking dents and scratches on all the panels, an ugly sill repair on the driver’s side and evidence of a back-street respray at the front. In fact, I thought the dodgy respray was the only thing holding Nicole back. That and a really over protective father, but that’s another story…

Anyway, the paint on the bonnet in particular, was as flat as a punctured holiday li-lo. I thought my days of T-Cutting were over, but an hour’s elbow grease later (well, it is for charity) and she was looking better. She was still a bit Sundaymorning-before-make-up, but better. The interior needed a good clean too, but after picking up a steamer from a mate the plans changed. Nicole threw a spanner in the works in the form of an airbag light. And I’m not talking about THOSE airbags, this is a car remember… Anyway, despite my best efforts (kicking, punching, shouting at it) it wouldn’t go out. So, instead of getting a mechanic involved (or Edd), or replacing the missing wheel trim I wrote an honest (ish) ad and bunged it on eBay. With a long MoT, Nicole doubled her money in less than an hour. With just a day to run, it was at £205. Then, with just hours to go of the auction, I was offered £350, but with 29 watchers I held my nerve and she sold for £410. Not bad, but still a long way off Baggott and his total fluke of a sale on the Peugeot. Picked up within days, the geezer that bought her was after a cheap car for his Missus and happily handed me a crisp pile of notes. Now all I need is a replacement to kick Baggott’s butt. So far I’ve been offered £300 of Fiat Punto, which was too dented (like my pride) to see any profit. See what I get next month. [CD] Mike Brewer presents Wheeler Dealers. Catch the latest series on Tuesdays at 9pm on the Discovery Channel CarDealerMag.co.uk | 53

focus on.

WEBSITEs MOTOR COMMERCE

Building websites and working partnerships W: Motorcommerce.co.uk T: 01724 859600

t’s not a new thing to observe but having a fully functioning website that’s a cinch to use has never been more important. Why is that? It’s because that internet-thing on people’s laptops, phones, and tablet computers is the first port of call for them when they are looking for a new car. Put yourself in the customer’s shoes. When you needed a new coffee machine in your showroom because the work experience boy broke it, it’s fair to assume you went onto the internet to find a replacement. You probably found two or three different machines but the ultimate choice came down to how much information you found out about them online. You might even have bought it online. So why treat your business’s website any different? In an era where customers will make split-second decisions on what dealer to buy their Volkswagen Polo from, making the right first impression counts. This is how Motor Commerce can help. The business has recently turned its focus to the motor trade, using its 14 years of experience in other sectors to good effect. Based in North Lincolnshire, it’s an in-house team made of 35, and is headed up by David White. ‘What really makes us stand out is our experience,’ says White. ‘I’ve been in the motor trade and working in dealerships for 25 years, and other members of my team have similar levels of experience. In total we have 60 years of experience in the automotive sector, and know exactly what it is like to be at the coal face. We really understand the needs of dealers, and are perfectly placed to help them out.’ While experience is a superb attribute, dealers are spoilt for choice when it comes to web design and website building, so what makes Motor Commerce any different? ‘That’s easy,’ explains White. ‘Our USPs are simple but hard-hitting. We have a very good track

54 | CarDealerMag.co.uk

record with many of our clients’ websites appearing on the first page of Google and search engines. We concentrate a lot on search terms. A lot of companies say they can help dealers out in this area – but we really can. We win every single time.’ A number of Motor Commerce’s clients have seen 50 per cent of their traffic come from Google, while the average client will see a 50 per cent increase in their site traffic within the first three months by working with Motor Commerce. What about design? Well, don’t expect a template that you could be sharing with 100 other dealers across the UK. ‘Templates are a dirty word,’ says White. ‘All our websites are bespoke and can feature as much or as little content as the client wishes. We often start with a clean sheet of paper with our clients to ensure the perfect bespoke design. A lot of companies have templates for dealer websites – we don’t.’ Don’t think you need to have an eye for design to get the most out of your website, either. Motor Commerce will work closely with a dealer to tailor-make their website, and the firm’s experienced team will be able to make the perfect website whether you’re a dealer group, franchised dealer, single outfit, used car dealer, or a specialist dealer. ‘We will often visit a dealer to help them in the design process,’ adds White. Motor Commerce won’t only design a professional website that really works – they will make sure that, if the client wishes, a website will boast all of the latest social media functionality. So, whether it’s Twitter, Facebook, YouTube or all of the above, Motor Commerce will make sure their clients are at the forefront of what consumers expect. That just doesn’t go

for social media integration, however. A Motor Commerce website can automatically send out feeds to the leading used car websites, videos and an unlimited number of images can be uploaded, website statistics – ranging from the number of visits from used car advertising websites, to the most viewed cars on the websites – can all be

Just some of Motor Commerce’s happy clients, from left, redlinespecialistcars.co.uk, peter-ambrose.co.uk and hardieoflarbert.co.uk

‘‘

contacting our clients to make sure they are getting the best from us – and this often happens weekly.’ Dealers also get monthly traffic and enquiry reports by email so they can see just how effective their website is and how easy to use it is for customers, unlimited phone and e-mail technical support 24/7, and telephone, e-mail, or face-to-face support should dealers need a little more help. Creating a website for dealers is not what Motor Commerce does; rather it creates a relationship, says White. ‘Working with us is not just one occurrence, but it’s a relationship. We believe in having a relationship with our customers.’ By working with Motor Commerce for your web marketing and web building needs, you could find yourself selling more cars to happier customers. And that is the perfect scenario. [CD]

I’ve been in the motor trade and working in dealerships for 25 years, and other members of my team have similar levels of experience. In total we have 60 years of experience in the automotive sector.

‘‘

included. That’s not to mention email marketing, service and MOT reminder emailing, CAP data integration, live chat, finance calculators, Google maps and places, and e-commerce facilities can all be integrated to build the perfect website for a dealer’s online needs. ‘A lot of dealers have benchmarked our service and feel we often offer more,’ adds White. However, don’t think once your website has been designed you’ll be left on your own. Not only are dealers guided through the whole creation process from start to finish thanks to initial face-to-face consultation meetings so Motor Commerce can establish exactly what a dealer wants, but a dedicated account manager will constantly be on hand. ‘A lot of our competitors only contact their clients when their renewal date comes around,’ explains White. ‘We’re not like this as we are constantly

CarDealerMag.co.uk | 55

focus on.

warranties WarrantyWise

We’re introducing the Quentin Willson effect W: Warrantywise.co.uk T: 0800 001 4550

ou probably think your business is the best out there – the one that is the most honest and transparent, and one that gives the best service to customers. This may well be true, but if you are such a dealer then you should be very interested in how you can provide your customers with a warranty from Warrantywise too. That’s because it’s like no other, says the firm’s managing director Lawrence Whittaker. ‘There are many other warranties out there which dealers can choose to offer their customers,’ explains Whittaker. ‘But some are low-quality. Some companies go to the dealer, spruce the showroom up with their brand – and that’s all it is, a brand.’ Warrantywise is a very different proposition, says Whittaker. ‘We offer a completely different warranty. Ours is an all-singing, high-quality warranty.’ Heard that before? Well, this time it’s true as some of the most prestigious dealers in the UK put their faith in Warrantywise. They have hundreds of happy customers all around the UK. ‘We tend to find the dealers who come on-board with us are high-end – such as Tom Hartley, Amari, Graypaul, and Sytner. They want to protect their reputation,’ says Whittaker. ‘We also have a large number of dealers who are in the motor industry for a reason: They love it and are in it for the long game.’ So what’s so special about Warrantywise’s offering? ‘Well, it’s as good as a manufacturer warranty,’ claims Whittaker. ‘It offers cover for all mechanical and electrical parts, the full retail value of the vehicle. There’s no excess; no betterment; no consequential damage and there are no limits in terms of mileage. The warranty is as transparent and as weasel-word-free as you can get an insurance policy to be. No-one offers anything remotely near the quality of this warranty. ‘We pay out 99 per cent of all of our claims for dealers. That’s market leading – and that is a golden thing for dealers. They get fed up with warranty companies not paying their claims. We do charge 56 | CarDealerMag.co.uk

Breakdowns do happen which is why it’s vital to offer your customers the best cover more, but we are paying our claims. If you pay less, you get less.’ Don’t believe Whittaker? Well, perhaps you should as the business began 12 years ago, and the warranty product that resulted had a large amount of involvement from the motoring journalist Quentin Willson. Whittaker explains: ‘At the beginning, Quentin said to us he was not prepared to come onboard unless the warranty was going to be groundbreaking. He didn’t want to risk his consumerchampion reputation that he had steadily built up after leaving Top Gear on a rubbish product.’ Willson still has a ‘huge amount’ of involvement too. Whittaker says Willson is in the ‘office virtually every week’ and every policy has Willson’s email address included so customers can get in contact directly with him – should they deem it necessary – if they have any problems. ‘He will respond to emails and is not afraid of talking to customers over the phone if necessary. Customers love it.’ And happy customers equal happy dealers. The Willson association is great news for dealers, too. ‘We are just starting to introduce “The Quentin Willson Experience” for dealers,’ says Whittaker. ‘When a dealer comes on-board with Warrantywise, they get Quentin for free.

‘Dealers can have a video in their showroom with Quentin telling them about the warranty – and dealers love this because it associates them with Quentin. We’re also about to launch a walk-on Quentin too where customers, when they go onto a dealer’s website, will get him walking onto the screen and explaining that if they buy a car from that dealer it will come with the UK’s best warranty. The Quentin factor helps dealers sell more cars.’ Warrantywise’s sales in April 2012 were 55 per cent up on the same month last year. ‘To have that level of growth in an economy that is 0.2 per cent down is something we’re very proud of.’ And the rest of the year looks promising too. ‘Unlike many of our competitors, we don’t have a network of reps. This allows us to keep the costs of our warranty down – and many dealers like to contact us directly.’ But why is offering a quality warranty these days important? Do customers really care? ‘Reputation is everything these days,’ remarks Whittaker. ‘Most car dealers aren’t selling locally anymore. In the past people would drive past a dealership and pop in, but they now go onto the internet. Dealers sell cars to people all over the country. That presents a problem in itself in that if a customer breaks down in their car and they’re 300 miles away from a showroom, what does the dealer do?’ The firm was always hot on advertising, but

‘‘

Dealers can have a video in their showroom with Quentin telling them about the warranty – and dealers love this because it associates them with him. We’re also just launching a walk-on Quentin for dealers’ websites.

‘‘

has recently invested a lot of money in television campaigns to really get the message out there. ‘Our new campaign began airing in March, and is on Dave, Yesterday and ITV4,’ says Whittaker. ‘This really helps dealers, because the viewer sees Quentin telling them about the warranty, and, consequently, the viewer has more faith in the dealer because they are providing a warranty that’s on TV. ‘It was a huge effort to get our advert validated by Clearcast – as it is for all companies advertising on TV. In our adverts we say the Warrantywise warranty is the best in the UK – and we wouldn’t be allowed to say that if it wasn’t true. ‘That is powerful, and combined with Quentin, dealers can sell more cars through providing a Warrantywise warranty.’ More sold cars? That’s good news for dealers big or small. [CD] CarDealerMag.co.uk | 57

Franchise dealers profit from our experience

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Tel: 0116 230 1444 Email: info@dealer-auction.com

www.Dealer-Auction.com Established 2008

focus on.

USED CAR STOCKING DEALER AUCTION

Easy-to-use site will boost your profit from trade cars W: dealer-auction.com T: 0116 2301444

‘‘

Our objective: to maximise the profit opportunity for any franchised dealer from their trade cars.

‘‘

n easy way to make more profit – it’s what we’re all after as tough economic times continue to dominate the headlines. But with a slight adjustment in your thinking and the involvement of the team at Dealer Auction, more money could be heading into your business in no time at all. How? Well, it just means a slight adjustment in your thinking when it comes to handling your trade cars. And it’s a message that’s particularly relevant to dealer principals who are keen to give their bottom line a boost and improve cash flow at the same time. Dealer-Auction.com is an online auction site offering trade cars from franchised dealers to thousands of pre-vetted, trade-only buyers. So that trade car coming in on a part-exchange, instead of being sent to an auction house or picked up by someone whose makes you a reasonable offer, will be put in front of a vast online audience. As a result, it is likely to fetch a far higher price. Sounds too good to be true? Not at all. And get this. There are no fees involved for sellers until a car is sold at a price that is deemed acceptable. And even then, the amount due is a very modest £40 plus VAT. Gavin Smith, one of the two directors of Dealer Auction, told us: ‘Our site in a nutshell is eBay, but purely for new car franchised dealers to offer their trade cars to a trade-only audience of buyers. ‘We’re fairly confident we’ve got one of the biggest online audiences of trade-only people at the moment with over 4,000 trade buyers subscribing to the site. ‘The vast majority are logging in and bidding on cars on a daily basis. Our objective is simple: to maximise the profit opportunity for any franchised dealer from their trade cars. ‘Often the focus at a dealership is on making more money in areas such as upselling parts, accessories, finance packages and so on, but actually, a lot of dealers don’t put that much focus on the trade side of the business. ‘What we’re trying to do is to get dealers to focus on that because there is a massive profit opportunity from trade cars. ‘If a dealer lists a car on our platform, they don’t

incur any fee for listing. And they control the auction. They describe the car, they set the duration of the auction and they upload the description and the photographs. Also, they say what they want the reserve price to be. ‘At that point they have incurred no costs whatsoever. If that vehicle achieves the reserve price, regardless of whether it’s a £500 banger or a £50,000 Bentley, we then charge £40 plus VAT.’ Think about your cash flow too! As Smith explained, a dealership might have £50,000 or £60,000 worth of trade cars in stock at any one time: ‘If they use us, that money will be heading into their

bank a lot quicker. We are the best source of goodquality trade cars for anybody in the motor trade at the moment. We can increase the level of profit for your business without any investment, no outlay and no set-up costs.’ The proposition for buyers is excellent too. Buyers get a 30-day free trial of the site, after which they are asked for a annual subscription of £69 per year plus VAT. And you can feel confident that with Dealer-Auction.com you are dealing with a rock-solid company with a great reputation that’s going from strength to strength. And the team Dealer Auction are all motor trade professionals, who fully understand the needs of dealers and trade car buyers. Smith told us: ‘By the end of the year, we hope we’ll be selling 750 cars a week. But in the back of our minds, we think that’s more likely to be 850-900 cars a week.’ Impressive stuff indeed. So with nothing to lose and potentially significant profits to gain, get in touch with Dealer Auction and make your trade cars work harder for your business. A very brief summing-up from Gavin Smith: ‘All you can do with us is make more profit!’ CarDealerMag.co.uk | 59

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USED CAR STOCKING MFL DIRECT

Ex-Motability cars are ideal if you’re after quality stock W: mfldirect.co.uk

‘‘

Once found, the dealer can be safe in the knowledge that the car is real and is ready to buy.

‘‘

cquiring good-quality stock is one thing, but getting hold of stock that you can trust and, more importantly, having the option to pick and choose, is quite another. This is how mfldirect can help. ‘We have got the most consistent and largest supply of three-year old used cars anywhere in the UK market,’ says Bart Day, mfldirect’s marketing manager. ‘All of our cars are single-owner, bought from new by Motability Operations. The firm is the remarketing arm of Motability Operations, who help out people who are eligible for the Higher Rate Mobility Component of the Disability Living Allowance and the War Pensioners Mobility Supplement. By acquiring stock from mfldirect, what are the real advantages for dealers? Well, firstly it’s the choice. The firm has a very wide range of vehicles, making it easy for a dealer to pick and choose cars that are ideal for their customers. ‘By the very nature of our stock, we do not dictate to the Motability operations customer what car they take out,’ explains Day. ‘So we have cars from 40 different manufacturers, and we have just accepted the new MG6 onto the scheme. Cars are supposed to be on the scheme for three years, but sometimes they’re on there for fewer years, so we often have the most modern cars on the used market.’ That means dealers who use mfldirect can be the first to have the latest machinery on their forecourts, crucially gaining an advantage over their competitors. The firm has experience in offering dealers cars that are new to the used market. ‘We had the first Vauxhall Insignia on the used market too,’ says Day. ‘It was one week after it went on sale in 2009, and that was a real bonus for mfldirect users.’ Every year, 200,000 used cars come off the Motability scheme, meaning it’s virtually impossible for a dealer not to be able to find the perfect car for their most picky customer. ‘After they have been used by the Motability customer, the cars all have a vehicle condition check, and around 65 per cent of the cars go onto mfldirect.co.uk for dealers to bid on,’ says Day. So, how do dealers get hold of these quality cars?

Simple, says Day. ‘We will start selling the cars two weeks before they are handed back. By doing this it means we never touch the car so our costs are reduced. Dealers will go onto mfldirect.co.uk, sign up, go on there on a daily basis where there’s around 1,500 cars currently available, look through the stock, or search for a specific type of car. ‘Once the car is found the car they can buy it; the car will either be ready for collection at a dealership, or they will have to wait while the car is still being driven by a Motability customer.’

That’s not the only great news, though. The company also has a nifty service called ‘My Virtual Showroom’ where dealers are able to give the impression they have a large inventory of cars, but in reality they don’t. A special log-in page on mfldirect.co.uk allows dealers to upload their logos and branding to make the website look like their own. It means that a dealer can sit down with a customer in the showroom and search and find the exact car they are looking for. Once found, the dealer can be safe in the knowledge that the car is real and is ready to buy, and the customer can have their car in around one to two weeks. But, throughout the process, the customer believes the page to be the dealer’s own. Another nifty feature is that a dealer’s selling price can be shown on the screen even though they don’t technically own the cars. In other words, mfldirect. co.uk can be used as a white-label product. And the cost of this straightforward service? It’s totally free to sign-up to mfldirect. co.uk – so get signed up today. CarDealerMag.co.uk | 61

Looking for new stock? Retail Ready and lightly damaged vehicles are available on Bluecycle. Car Dealer magazine readers can register for FREE* until July 31st (usually ÂŁ40).

Why choose Bluecycle? FREE* to register All vehicles HPI clear Clear vehicle descriptions Open and transparent auction process Verified sellers Retail Ready vehicles sold with valid MOT (where applicable)

*Please quote CDM in the promotional code box within the registration form

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focus on.

USED CAR STOCKING BLUECYCLE

Retail Ready – the fantastic new service from Bluecycle W: bluecycle.com T: 0844 822 7800

‘‘

luecycle, the car salvage specialists, are moving in an exciting new direction – and if you’re looking for a cheap and easy way to get hold of some decent stock, you’d be well advised to read on! Already known as the leading online marketplace for car salvage auctions, the company has just launched its new ‘Retail Ready’ forecourt. And as the name of the new venture implies, the cars sold under the Retail Ready banner are exactly that: completely ready to be added to your stock and sold on. Andy Latham, Bluecycle’s compliance manager, explained the thinking behind the new venture. ‘Bluecycle is a wholly-owned subsidiary of Aviva,’ he told us. ‘We deal with all the motor salvage that comes from Aviva as well as servicing other customers as well. ‘We also do some defleeting work involving those vehicles that are too badly damaged for the fleet company to retail in their normal manner. We are now taking selected vehicles from all those sources and getting them repaired by Solus which is the Aviva network of bodyshops. ‘They’re repairing those vehicles, where possible, using green parts. That is, recycled parts that have come from donor vehicles or through the recycling industry. Those vehicles are then prepared to retail standard and sold on the Bluecycle site in exactly the same way that we would sell any other vehicle. The crucial difference is that while other vehicles we sell are damaged, these ones aren’t. ‘They come fully valeted, they come with an MoT where applicable, log books and so on and literally, everything is ready. All you need to do is put the road fund licence on it, insure it and you can drive it down the road.’ Although the Retail Ready forecourt has only been up and running for a couple of weeks, Latham said the new part of Bluecycle’s website had already featured an extremely wide variety of vehicles. When we spoke to him, he told us: ‘We’re going through the whole gamut of stuff at the moment. We’ve got 06 Focuses and Astras right through to an Audi RS6 and pretty much everything inbetween. ‘One of the specials we’re looking at is a 1965 Ford Mustang which I must admit I’m after myself!

‘The Retail Ready Forecourt represents a slight change of focus for us. We’re not moving away from our core offering which is still going to be motor salvage and damaged vehicles. ‘We’re moving into an area that we’re not really known for which is vehicles that you can just drive away and put on your forecourt.’ Bluecycle’s Retail Ready forecourt operates in

a slightly different way from other auctions on the site, explained Latham: ‘Whereas our normal auctions run for two working days, these run for five because we appreciate that some dealers out there might actually want to get a customer lined up for the vehicle first.’ Of course, the other areas of Bluecycle’s work will continue as normal and Latham is keen to stress that buying damaged cars can often lead to easy stocking and quick profits for car dealers. ‘Vehicles will continue to go through the system in a damaged state, and invariably what they need is a bit of TLC. ‘Maybe they have got a damaged bumper or door or something like that – and apart from that, they might just have a few scratches and need a damned good clean. It’s a very cheap and easy way of getting some decent stock. And this stock is Astras, Zafiras, Focuses, Meganes, all that sort of stuff – ie fastmoving.’ Whichever part of Bluecycle’s operation you focus on, you can be sure that the company is dedicated to providing its customers with first-class, friendly service. CarDealerMag.co.uk | 63

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specialist staff have been employed for their expertise within the vehicle and ﬁnance industries 64 | CarDealerMag.co.uk

focus on.

USED CAR STOCKING VEHICLE STOCKING LTD

What if you need cash to get stock? Help is at hand! F

inding suitable stock for your customers is a challenge in itself, but it’s an even greater one if you don’t have available cash to fund it. This is where Vehicle Stocking Ltd can help. They are specialists in helping out dealers with all of their finance needs as they’re both a lender and can provide finance products for your customers. ‘We are totally unique in this area,’ says the firm’s operations and

developments manager, Louise Hughes. ‘We can help dealers finance the purchase of additional stock for their forecourts, or we can help free up some of their funds.’ In a climate where major banks have reduced overdraft limits, and guarantee levels have risen, dealers are finding it hard not just to sell their cars, but finding enough cash to fund new stock acquisition. It’s a nasty cycle. Vehicle Stocking Ltd has been trading for the last three years, but has more than 35 years’ experience in the motor trade. The firm started in finance brokerage and then moved into financing garages, initially local to them, but now they are financing a large number of dealers and garages, predominantly in the Midlands area. In other words, they understand the industry. ‘What makes us different is our attitude to lending money to dealers,’ says Hughes. ‘We are funding stock in a way like no other finance provider is doing, and very much operate in an old-fashioned style – that is, making it straightforward for a dealer to acquire finance. We want dealers to be able to feel as though they can come to us and not be told ‘‘no’’ or ‘‘go away’’. We have a hands-on approach with dealers, and they like this.’ So what other factors make them different? Well, the service is run entirely in-house, and is different in another way – how stock is bought. ‘Rather than give £100k and let the dealer go, we pay their bills,’ explains Hughes. ‘Invoices get sent to us and we pay them.

‘‘

Unlike a lot of finance providers, we do not trawl through a dealer’s bank statements.

‘‘

W: vehiclestocking.co.uk T: 0116 271 6737

‘It’s all done in-house; and there are benefits for both the dealer and ourselves as the security is in the asset rather than the company. All cars we finance are HPI-checked as well.’ The firm stipulates that their service is not suitable for start-up businesses; rather it is more of a bolt-on product. And keeping things the oldfashioned way also means Vehicle Stocking Ltd only will approve dealers if they have the freehold or the leasehold of their retail site, and if they’re a limited company. ‘Unlike a lot of finance providers, we do not trawl through a dealer’s bank statements or financial history. All we are interested in is the credibility of the garage owner. If they have a good business with a lot of experience, that is often enough for us,’ remarks Hughes. Dealers are notified within 48 hours whether they have been successful in being approved for finance – and that’s unique. And the firm can provide stocking finance for dealers from £50k to £300k, and can lend 100 per cent of CAP trade value. One good feature the firm provides is passing on their discounts to their dealers. The firm has accounts with many of the UK’s largest auction houses and car supermarkets – often with premium account status, meaning they get preferential fees. ‘It’s very much like a club – all of our discounts are passed onto our dealers,’ says Hughes. ‘We also provide a delivery service with competitive rates so dealers can get their newly-acquired stock home.’ And because the business can also provide finance to customers, they are a great partner to do business with if a dealer’s customers need finance as they work with Santander Consumer Finance and Close Motor Finance. It’s fair to say Vehicle Stocking Ltd could be a dealer’s perfect finance partner. CarDealerMag.co.uk | 65

Are you looking for prime used stock? You simply cannot beat Autotrade-mail.com With over 1,000 high quality vehicles being offered and requested by our members every single day, it is easy to see why over 35% of the franchised dealer network and over 50% of the most professional independents have taken the view that our service is worth the £67 monthly investment to their business. The number of cars offered & requested by our members over a 14 day period*

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USED CAR STOCKING AUTOTRADE-MAIL

Growing company always puts customer service first W: autotrade-mail.com T: 01243 523 000

t’s very easy to be picky in the stock you choose for your forecourt but, as we all know, being picky can mean you lose out in the long-term. But this isn’t the case with subscribers to Autotrade-mail. The online used car trading platform has been successfully providing dealers with highquality stock since 1999. ‘We have 5,000 motor industry subscribing members,’ says Autotrade-mail’s operations director, Kevin Watson. ‘Therefore with 25,000 adverts placed each month, and each ad going to 500 individual members per month, that creates a staggering 12,500,000 email adverts per month. Yes, it’s a sizable amount of traffic and we are very pleased we’re not delivering them by post.’

‘‘

The online used car trading platform has been providing dealers with high-quality stock since 1999.

‘‘

But size and quantity is not important to Autotrade-mail.com. What is important, though, is that the right stock is being presented. Watson said: ‘For example, if a Porsche main dealer takes in a Porsche that doesn’t quite meet their retail profile or it’s a duplication of a vehicle they may have, the response to the advert that they then place on our system must, without exception, get a good response – be it from an independent or a franchised dealership/group. ‘There are many companies that promise ‘‘buyers’’ and promise ‘‘stock’’ a bit like Tesco – but then have trouble sustaining it. Autotrade-mail invests and spends an inordinate amount of time ensuring that the balance we have on our system is right. ‘We will not dilute the result for a seller or not

have enough stock for the buyer.’ Watson added: ‘If this was to have happened we would not have had over 10 years of continuous gradual growth, and we are determined not to grow at the cost of the service we provide to our members. ‘We want to remain the UK’s leading online used car trading network, serving an industry that we have had first-hand experience in. We know how tough it can be, therefore we must assist our proactive members as best we can which also means being innovative.’ In recent years the firm has introduced a collection and delivery service, an online auction facility, Escrow payment option, and a toolbar pop up advert mechanism. ‘It sends an advert like msn pop-up,’ says Watson. ‘It’s an incredible piece of

technology; our server polls with a member’s PC server and within 120 seconds of an ad being placed, it is received. It’s faster than a text as there is no reliance on any form of traffic.’ Autotrade-mail is not the type of company to rest on its laurels, though. ‘We are also not blinkered and are continually looking forward to serve our members with what they tell us they want but in a well-considered and balanced way. ‘ Still need some convincing? Any interested dealers can have a free two-week trial to find out how the service can help them in stocking used cars. This means there’s no excuse to try out something new – perhaps you could be joining Autotrade-mail’s band of 5,000 happy subscribers. CarDealerMag.co.uk | 67

focus on.

USED CAR STOCKING GRS

Quick and professional, grs is the ideal stocking partner W: grs.co.uk T: 01743 281800

68 | CarDealerMag.co.uk

‘‘

We like to think we have the best people in the remarketing industry.

‘‘

ourcing stock is not just about getting hold of vehicles to sell – it’s also about selling them and turning a quick, tidy profit. In order to do this, dealers need a company that can act quickly and professionally – and this is exactly how grs can help. This year marks grs’ 17th year of business and they have specialists in vehicle remarketing, ensuring that the process of dealers sourcing and buying vehicles is a straightforward and easy one. ‘I very much believe we are a hidden gem in the trade,’ says grs’ managing director, Theo Kortland, pictured right. ‘We have a core and very loyal following – but we want more dealers to use our professional services. One of our challenges this year is achieving this.’ One challenge the business is currently deep in the process of completing is the relocation of its sales and operational support teams from nearby Shrewsbury to its state-of-the-art logistics centre in Cold Meece. The move will be completed by July, and, until now, the two operations had been run at different sites. But the move will see grs’ already impressive Cold Meece site really become the ‘hub’ of the grs operation. It’s fair to say that Cold Meece is indicative of the grs operation. The 36-acre site can hold up to 4,500 cars – and the process of getting a vehicle from delivery to ready for sale takes only 24 hours. Cars arrive on site and are immediately inspected for damage – damaged cars are expertly and swiftly refurbished – photographed, uploaded online, and are ready for collection or delivery to a dealer. Because grs takes care of vehicle refurbishment, it means dealers don’t have to worry about losing money while their new stock is waiting to be prepared in order to be displayed on their forecourts. ‘It’s a false economy buying un-prepped vehicles,’ explains Kortland. ‘Dealers not only have to spend extra money, but whilst a vehicle is not on sale it’s depreciating.’ With space for 4,500, there’s plenty for dealers to choose from when sourcing their stock. ‘Our stock’s very diverse,’ says Kortland. ‘There’s a perception that we deal mainly in late-plate Vauxhalls. While it is true we do have a large choice of good-quality GM products, we deal in everything.’ And Kortland

is right. When Car Dealer visited the firm last year, their Cold Meece site stocked everything from Fiat 500s to BMW 1 Series Coupes. grs also stocks LCVs and are strong when it comes to this sector. ‘We have a large selection of quality LCV stock and are in the perfect place to help out dealers in this area. ‘There’s a misconception that

vans are only sold by experts and specialist traders. But more car dealers are moving into this sector and are doing well as the margins are stronger.’ That’s the stock area of the business, but what’s the customer-facing side like? Well, you won’t be surprised to hear it’s just as professional, slick, and impressive. grs’ sales and customer services teams are on hand to give personal account management services to dealers. It’s where grs’ excellent customer service is passed through to the customer, and its team of highly professional account managers work with dealers during the buying process and notify them of suitable stock for their businesses. ‘Over the next 12 months we will be focussing more on attracting new dealers to our services,’ adds Kortland. ‘With grs you know what you get; we are consistent in quality and the service we give to our dealers. ‘People buy from people. And we like to think we have the best people in the remarketing industry.’

ASTON BARCLAY

First-class facilities

W: astonbarclay.net T: 01245 450700

‘‘

The beauty of auctions these days is that dealers needn’t travel to them.

to make sure they are aware of what’s being auctioned at any given time through emails and texts. Catalogues are also available online.’ The firm has also recently launched a brand new website that allows dealers to source the most specific of cars and they can save previous searches. The firm is also hot on Twitter and Facebook. But, what if you’re the type of dealer who likes to attend auctions? Well, thanks to modern and goodlooking auction rooms, Aston Barclay’s facilities really are like no other. ‘Our glazed auction rooms in our Chelmsford site, for instance, have attracted more buyers to them. ‘They’re welcoming too with meet and greet areas, and just make the process of sourcing stock just that little bit nicer,’ concludes Henson.

‘‘

he auction house is a traditional way to source stock, and a method that is still highly effective. ‘Auctions are great for getting stock because of the large variety of vehicles available,’ says Alan Henson, Aston Barclay’s sales and marketing director. Aston Barclay has been selling cars to dealers via its auction rooms since the mid-1980s, and is very experienced in helping dealers acquire good-quality stock and good prices. ‘Through our four auction houses, we attract vehicles from most of the top companies such as Lex Autolease, Motability, Alphabet, Leasedrive, dealer groups like Marshall and manufacturers such as Mercedes-Benz UK,’ says Henson.

‘The beauty of auctions these days is that dealers needn’t travel to them,’ explains Henson. ‘Thanks to our sophisticated systems, dealers can buy in confidence in their own showrooms. ‘We are always communicating with our dealers

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Aston Barclay Leeds Opening on 11th May Sales Every Tuesday and Friday CHELMSFORD LEEDS PREES HEATH WESTBURY www.astonbarclay.net info@astonbarclay.net CarDealerMag.co.uk | 69

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USED CAR STOCKING Car Fleet Wholesale

Going for quality

W: carfleetwholesale.co.uk T: 0151 356 1200

70 | CarDealerMag.co.uk

‘‘

Each dealer has an account manager to guide them through the process and help them out, and our accounts team looks after the admin side.

‘‘

here’s one firm which has a straightforward message to give to dealers when they’re sourcing stock: Why not take the high-quality option? Car Fleet Wholesale has been trading for nearly five years, and has quickly established itself not only a credible reputation within the trade, but also a name as one of the leading suppliers of cars. ‘We supply cars to main dealers, independent dealers and car supermarkets across the UK – including Pendragon and Motorpoint, for example,’ says Car Fleet Wholesale Ltd’s sales director, Tony Startup. ‘We supply all makes and models and supply around 300 cars a month. The cars we sell are up to three years old, and are ex-fleet and exrental cars all of good quality.

‘What makes us different is the service we provide. We really try hard to give dealers the very best service and look after them – and we’re committed to develop this even more in the future. ‘Each dealer has an account manager to guide them through the process and help them out, and our accounts team looks after the admin side so dealers don’t have to worry about not having the correct spare keys or not having the car’s log book,’ explains Startup. The firm sells out of its base at Ellesmere Port but the vehicles are held throughout the country in compounds. ‘We don’t bring them to one site and refurbish them – they are expertly prepared at different sites,’ says Startup. This is far more convenient for dealers as they are able to go to the site that’s nearest them, and they have a good opportunity to inspect the car or cars they want to buy without having to travel long distances or rely on the internet. That’s not to mention the savings on transportation costs. ‘Plus, we’re able to deal with local dealers and traders which is far more rewarding for us.’

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DATA FILE.

Thestatistics Used Cars n Top 10 Searches n SMMT Sales Data

OK, so the UK is back in recession, but what does that mean for our industry?

Britain re-entering recession was bad news for our industry... and PM David Cameron will have been dismayed

Car Dealer spoke to a number of leading figures within the motor trade on a grim day for the British economy

aul Everitt, SMMT, chief executive, told us: ‘Demand in the UK vehicle market remains stable and while the GDP figures are disappointing, they will have little impact on future demand for new cars. Manufacturers and their dealer networks continue to offer outstanding products and services that saw first quarter registrations remain strong, up almost one per cent on 2011.’ Paul Williams, CEO, SsangYong Motor UK: ‘A double-dip recession is inevitably a bad news headline the media will exploit to the full, but I don’t think anyone is hugely surprised. A percentage point here or there won’t affect those businesses that have anticipated and planned for this. ‘Whether you’re selling cars or baked beans, the consumer will

‘‘

increasingly be attracted to value brands. Competitive pricing, great service and reassuring features such as long warranties will win the day.’ Chris Mason, Motor Codes managing director: ‘While the recession means that price is one deciding factor in terms of where people turn for car service and repair, confidence in a product or service is just as important. ‘Today’s consumer is an empowered consumer and businesses should be using the internet and transparent, online feedback mechanisms to their advantage. This is where potential customers are increasingly looking to compare, contrast and either select a product or disregard it – often in a matter of minutes. This is equally applicable to the garage selection process as it is in any other retail environment.’ Daksh Gupta,

We have to continue to trade in a manner which focuses on the customer.

chief executive, Marshall Motor Holdings: ‘I am very surprised by the news we are back in recession, particularly as the industry does appear to have a good quarter one underpinned by positive retail performance. For me, the news doesn’t change anything though. ‘I think we have to continue to trade in a manner which focuses on the customer, maximizes every opportunity that comes through the door in all areas of the business and watch our costs very tightly.’ Phill Jones, commercial director, Motors.co.uk: ‘The good news is that while dealers face harsh trading conditions, a car is still an essential purchase for most families and people are looking more than ever for value for their next car. There are a number of dealers out there doing a roaring trade despite the harsh economic climate, so it’s not all doom and gloom for everyone.’ Roland Schaack, managing director, Codeweavers: ‘Any recession should be seen as an opportunity to continue the neverending process of making your business leaner and fitter. Weather the storm and emerge stronger, fitter

and well-placed to take business from less agile competitors.’ Tim Smith, commercial director, GForces: ‘A double-dip recession might now be a reality, but the internet can still help dealers flourish. We’ve just seen one dealer grow sales by 40 per cent year-onyear, largely as a result of having a new online marketing strategy and a website that better encourages visitor engagement. ‘Car dealers have more moneymaking online tools available than ever before. Now is the time to use them.’ Tim Peake, group strategy director, Trader Media Group: ‘More than ever, dealers that will be winners will be those that: focus

sales@motors.co.uk

0845 265 6000 www.motors.co.uk/mediacentre 72 | CarDealerMag.co.uk

..in association with

Kelleher

Market insight

It’s a numbers game...

on how they are pricing their vehicles, using retail-minus rather than cost-plus pricing; are highly geared towards closely monitoring stock turn and use local market intelligence data and tools to source vehicles where there is a clear local demand; and ensure that their online presence is fully integrated into their entire business proposition with the objective of becoming true internet car retailers.’ Graham Bushby, head of motor, Baker Tilly Restructuring and Recovery LLP: ‘The announcement from the Office of National Statistics that the UK economy has ‘‘double dipped’’ will be another severe blow to the motor retail industry. ‘Successful dealerships will not only acknowledge the current market challenges but go further in

demonstrating a month-by-month flexibility and innovation in proactively tackling the challenges of a rollercoaster economy.’ Jeremy Evans, managing director, Marketing Delivery Ltd: ‘Drivers with cars bought on finance plans still have decisions to make, regardless of the wider economy. The dealers who are pro-actively staying in touch with them will reap the rewards. It’s never been more important to keep the relationship going with your customers.’ Jonathan Skinner, business development manager, Gemini Systems: ‘I strongly believe that since the national news reporting has scaled down its stories, and frankly biased scaremongering, on the world economy people have regained some confidence to spend their money.’

n previous columns, I have touched on the role of mobile phones in the used car buying process, with particular focus on the increasing volume of online searches that are being performed on these devices. There is of course another hugely important role that the phone plays in the car-buying process – namely its use calling dealers to inquire as to the availability of cars that consumers have seen advertised. We recently commissioned a survey of 1,000 used car buyers to understand the importance of the type of telephone numbers used when replying to cars advertised either offline in print and magazines or online on used car portals or dealers’ own websites. The results were revealing and highlight the need for dealers to carefully consider the type of telephone number they use in advertising communications. The research revealed the vast amount of consumers are concerned about the cost of calls to non-geo numbers such as 0845, 0843 and 0345, with 20 per cent checking the cost of making a call and nearly 50 per cent of consumers claiming that they would not telephone a number if it had a high rate call. Most tellingly, 39 per cent of consumers would not call telephone numbers that begin 0845 / 0843/ 0345 because of the cost, but instead would seek a local telephone number (e.g. 0121/ 01235) for that car dealer. And just two per cent of users were in theory happy to call the highest tariff (6p-10p per minute) 0871 numbers in order to contact a dealer. When it came to receiving inbound calls from dealers, consumers also expressed strong preferences in terms of the type of number they were prepared to receive calls from – especially on their mobiles. Just 17 per cent of consumers said they would answer their phone if the telephone number showed the caller was from a 0845 number or blocked/unknown number, a consideration for dealers out there who currently route calls through switchboards that anonymise the outbound number.

Who is Dermot Kelleher?

He is head of research at Motors.co.uk. Find out more about how the portal can help you on their website or call 0845 265 6000.

CarDealerMag.co.uk | 73

DATA FILE.

Thestatistics Used Cars n Top 10 Searches n SMMT Sales Data

The most searched-for cars on Motors.co.uk

Most popular manufacturer 1 Ford 2 Vauxhall 3 Volkswagen 4 BMW 5 Audi 6 Mercedes-Benz 7 Peugeot 8 MINI 9 Toyota 10 Renault Most popular models 1 Ford Focus 2 BMW 3 Series 3 Ford Fiesta 4 Vauxhall Corsa 5 Volkswagen Golf 6 Vauxhall Astra 7 Ford Mondeo 8 Renault Clio 9 Audi A3 10 Audi A4 most popular sub-£10k cars 1 Ford Focus 2 Ford Fiesta 3 Vauxhall Corsa 4 Vauxhall Astra 5 Renault Clio 6 Vauxhall Zafira 7 Volkswagen Polo 8 Peugeot 206 9 Renault Megane 10 Peugeot 307

Forecast is revised upwards after rise in April registrations New figures send confidence heading in right direction

The Ford Fiesta was April’s best-seller

ew car registrations rose 3.3 per cent in April to 142,322 units, the latest SMMT figures reveal The month was the third, and largest, increase this year with January-April volumes up 1.4 per cent. Private registrations grew 14.8 per cent in April, continuing the sector’s recovery. The figures have prompted the SMMT to revise its full year forecast to 1.95m units – higher than 2011 by 0.4 per cent. ‘A strong April new car market has raised confidence across the UK motor industry with registrations increasing 3.3 per cent,’ said Paul Everitt, SMMT chief executive. ‘We are seeing a steady increase in consumer confidence with growth in private demand, boosted by the arrival of a raft of new products. SMMT has increased its full-year forecast to 1.95 million units, putting the market marginally ahead of 2011, indicating a period of relative stability.’ David Raistrick, UK manufacturing leader at Deloitte,

‘‘

found the 3.3 per cent increase surprising. ‘The fairly significant increase in new car registrations during April 2012, compared to the same time last year, comes as a surprise,’ said Raistrick. ‘This is good news for the industry, particularly in light of the announcement that the UK has fallen back into recession.’ While this increase in sales, the largest so far this year, could indicate the market is stabilising, retailers remain cautious. ‘With regards to fleet sales, levels have generally been maintained, but companies are going to be making difficult decisions in the coming months with potentially lower levels of fleet sales being seen in Q3,’ said Raistrick. ‘On the finance

We’re seeing a steady increase in consumer confidence.

side, a range of new financial products are still available for the private buyer. However, providers are becoming much more stringent with their checks and balances to manage risk.’ From manufacturers’ point of view, prospects are not looking equally positive, said Raistrick. ‘The latest PMI figures highlighted the manufacturing industry barely grew in April as weaker overseas demand hits new export orders – making a good case for those who are losing confidence in the sector. Sue Robinson, director of the NFDA, added: ‘Members remain concerned due to the light footfall around the dealerships, though a higher number of customer visits are being converted into actual sales. Retail customers are showing an increase in preference for goodvalue vehicles.’ The Ford Fiesta was April’s bestseller, while the Fiat 500 made it into the top 10 for the first time this year.

sales@motors.co.uk

0845 265 6000 www.motors.co.uk/mediacentre 74 | CarDealerMag.co.uk

..in association with

SMMT sales data Apr/year to date

TOYOTA +35.12%

AUDI -3.51% Figures supplied by SMMT

April Marque

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

2012

60 637 65 8,991 92 9,846 910 217 5,325 0 3,675 20,621 3,413 5,271 103 805 128 5,120 2,633 551 8 26 1,348 6,721 16 2,581 436 6,356 40 6,125 699 27 2,081 23 3,002 4,039 378 69 83 1,033 6,191 16,487 13,300 2,627 70 93 142,322

% market share

0.04 0.45 0.05 6.32 0.06 6.92 0.64 0.15 3.74 0.00 2.58 14.49 2.40 3.70 0.07 0.57 0.09 3.60 1.85 0.39 0.01 0.02 0.95 4.72 0.01 1.81 0.31 4.47 0.03 4.30 0.49 0.02 1.46 0.02 2.11 2.84 0.27 0.05 0.06 0.73 4.35 11.58 9.35 1.85 0.05 0.07

Year to date (YTD) 2011

% market share

2012 % Change

108 1,313 100 9,318 111 8,014 1,071 18 4,225 0 2,941 18,411 2,853 4,612 45 516 150 3,641 1,712 785 37 32 1,589 5,610 11 2,335 738 7,010 51 5,853 485 54 4,730 489 2,536 3,482 354 2 133 1,118 4,582 18,306 15,807 2,302 92 64 137,746

0.08 0.95 0.07 6.76 0.08 5.82 0.78 0.01 3.07 0.00 2.14 13.37 2.07 3.35 0.03 0.37 0.11 2.64 1.24 0.57 0.03 0.02 1.15 4.07 0.01 1.70 0.54 5.09 0.04 4.25 0.35 0.04 3.43 0.36 1.84 2.53 0.26 0.00 0.10 0.81 3.33 13.29 11.48 1.67 0.07 0.05

-44.44 -51.49 -35.00 -3.51 -17.12 22.86 -15.03 1,105.56 26.04 0.00 24.96 12.00 19.63 14.29 128.89 56.01 -14.67 40.62 53.80 -29.81 -78.38 -18.75 -15.17 19.80 45.45 10.54 -40.92 -9.33 -21.57 4.65 44.12 -50.00 -56.00 -95.30 18.38 16.00 6.78 3,350.00 -37.59 -7.60 35.12 -9.94 -15.86 14.12 -23.91 45.31 3.32

422 2,946 368 44,953 421 39,909 6,192 999 24,910 0 16,734 103,469 18,160 23,032 247 4,825 810 22,331 18,443 3,243 43 125 11,056 32,297 462 13,887 2,538 36,437 175 35,536 2,427 122 13,662 137 13,086 17,917 1,866 302 1,003 8,744 31,951 74,323 63,173 11,502 338 355 705,878

%market share

0.06 0.42 0.05 6.37 0.06 5.65 0.88 0.14 3.53 0.00 2.37 14.66 2.57 3.26 0.03 0.68 0.11 3.16 2.61 0.46 0.01 0.02 1.57 4.58 0.07 1.97 0.36 5.16 0.02 5.03 0.34 0.02 1.94 0.02 1.85 2.54 0.26 0.04 0.14 1.24 4.53 10.53 8.95 1.63 0.05 0.05

2011

Figures supplied by SMMT

%market share % Change

509 4,461 417 42,139 364 38,304 4,834 217 24,771 2 15,281 98,439 19,880 21,955 138 4,550 609 18,311 14,976 3,061 170 141 12,041 28,242 29 14,441 4,312 32,016 204 34,344 1,839 211 25,121 2,867 13,007 14,654 1,843 9 1,139 7,975 28,278 85,007 62,486 11,743 409 336 696,082

0.07 0.64 0.06 6.05 0.05 5.50 0.69 0.03 3.56 0.00 2.20 14.14 2.86 3.15 0.02 0.65 0.09 2.63 2.15 0.44 0.02 0.02 1.73 4.06 0.00 2.07 0.62 4.60 0.03 4.93 0.26 0.03 3.61 0.41 1.87 2.11 0.26 0.00 0.16 1.15 4.06 12.21 8.98 1.69 0.06 0.05

-17.09 -33.96 -11.75 6.68 15.66 4.19 28.09 360.37 0.56 -100.00 9.51 5.11 -8.65 4.91 78.99 6.04 33.00 21.95 23.15 5.95 -74.71 -11.35 -8.18 14.36 1,493.10 -3.84 -41.14 13.81 -14.22 3.47 31.97 -42.18 -45.62 -95.22 0.61 22.27 1.25 3,255.56 -11.94 9.64 12.99 -12.57 1.10 -2.05 -17.36 5.65 1.41

Smmt Has Removed The Following Brands As They Registered No Vehicles In The Uk In 2011: Cadillac, Corvette, Daimler, Dodge, HuMMER

CarDealerMag.co.uk | 75

RIGHT CLICK.

..in association with GForces

Retention is key now we’re back in recession Putting your customers in control will help make sure that they keep returning

ustomer confidence has taken yet another hit with recent news that the economy has slipped back into recession. It’s a triple whammy for car dealers who are also facing a decline in the aftersales sector and a shortage of good-quality used car stock. Against this problematic backdrop, customer retention is predictably assuming ever greater importance – more than 80 per cent of dealers now regard retention as their biggest challenge (Alphera Financial Services). Aiding the retention effort is the fact that 64.5 per cent of new vehicle purchases are made using dealer finance, a bonus given that almost twothirds of dealers report that it’s easier to retain customers who have bought using this method. Of course, to secure the customer in the first place, a finance calculator is a website essential, and with only 38.5 per cent of the UK top 200 dealers offering this function, there is an opportunity to stand out. The internet is playing a much bigger part in retention, providing both a challenge and an opportunity. The challenge comes from the fact that websavvy customers are now increasingly willing to travel to secure deals found online.

The opportunity comes in that dealers have a better choice of well-proven online tools for marketing their new and used car stock (as well as their parts, merchandise and service offerings) and for engaging with customers to foster more loyalty than ever. Effective retention is all about having regular customer engagement ahead of the sale, and then maintaining that after the purchase has been made. For example, Live Chat is a highly effective way of improving the quality of interaction with a sales prospect. The automotive industry can learn a lot about customer retention by looking at consumer habits outside the automotive industry, notably by enabling customers to take greater control. For example, once a customer has made a purchase, a dealer website can host a portal where relevant customer details are stored. Brands like Amazon and iTunes have been doing this for years, and customers go back and update their personal information themselves because it is beneficial for them to do so. An online portal also has benefits for an aftersales department. With vehicle details stored by the system, along with customer-maintained personal information, a dealership can direct aftersales correspondence

much more effectively. Almost 40 per cent of owners forget to book their car in for its first MOT after three years, and an automated system could help lower this figure significantly – to the benefit of all parties. Were dealers to combine a customer portal with suitable online tools, whole elements of the car-dealing business could be administered via the internet. Most of the software already exists for lifecycle CRM to take to the web. An over-arching customer portal would bring this all together into a holistic platform, helping ensure that customers keep returning. Both Amazon and iTunes have a very high percentage of repeat business simply because they get the basics right. They provide what the customer needs by letting them fill in the details and define their preferences. It’s only a matter of time before car dealers find they must do likewise to maximise their own customer retention.

Who is Tim Smith?

He is commercial director for serial award winners GForces. Learn more about how he can help you at gforces.co.uk or call 0845 658 9290.

‘Whole elements of the car-dealing business could be administered via the internet.’

IT AIN’T ROCKET SCIENCE A STREAMLINED, FLEXIBLE AND HASSLE-FREE ONLINE SERVICE BOOKING SYSTEM. Call GForces on 0845 658 9290 visit www.gforces.co.uk to find out more.

CarDealerMag.co.uk | 77

auctions.

Motor Codes announces regional winners bit.ly/Codeswinners

BCA muscles in on hand-picked classics Group scouring the US for cars to put in front of worldwide audience

Car Auction in Nottingham thereafter. The initial line-up includes three Chevrolet Corvettes, two Pontiac GTOs, one Chevrolet Camaro, one Pontiac Firebird and a very rare Plymouth GTX, with all models dating from 1963 to 1970. DARCARS group spokesman Robert Ryan said: ‘These sales will offer a rare opportunity for collectors and enthusiasts to purchase from a selection of beautifully restored classic American muscle cars at auction. These cars have been handpicked as some of the best available to the marketplace.’ BCA’s spokesman Tim Naylor added: ‘This is an exciting programme that will attract interest not just from UK buyers but much further afield. We are coordinating with BCA’s European operations to ensure these cars have the widest possible audience of buyers via the Live Online sales channel.’

Live video link in action as 1981 Ferrari is sold A 1981 Ferrari 308 GTBi kept bidders busy at Barons’ sale at Sandown Park. The bright red Italian beauty – which has been sitting in storage for the past decade and now requires re-commissioning – had a guide price starting at £13k but was in such demand that it eventually sold, after a prolonged session of bidding, for Project3 £24,600. 23/4/12 17:03 Page 1

auction stations

Used cars playing a vital role as slump goes on

uctions firm BCA has announced a spectacular new international sales event in partnership with the DARCARS Automotive Group of the USA with the launch of a monthly sale of American Classic Muscle Cars at BCA Nottingham. The DARCARS group is scouring the US to secure the most iconic and desirable examples of Americana Muscle Cars from the Fifties, Sixties and Seventies which BCA will sell by Live Online auction to a worldwide audience of buyers. Eight cars feature in the initial sale which takes place as part of the sports, prestige & executive auction at BCA Nottingham on June 21. All the cars in the programme have been fully restored and are presented to the highest standards with UK registration and 12 months MOT. All vehicles are supplied with comprehensive documentation including, where available, details of restoration work undertaken. Further sales of 16 additional cars are scheduled for July 19 and 24 cars for August 16, and at least 24 cars monthly at each Top

Henstock

The auction was also the first time that Barons had operated a live video link, allowing people to watch the auction action from the comfort of their own homes or offices. Barons MD Laurence SayersGillan, said: ‘This is an exciting new development for us and one which we think will be a great advance for the future.’

No cowboys. Just Just trade trade professionals. professionals.

eports suggest that used car sales are playing an ever more vital role in profitability as the tough economic times continue – and it’s a fact that’s reflected in the wholesale vehicle sector. According to BCA’s data, current used car values are among the highest recorded in the post-recession environment. However, the supply side of the market equation should not be ignored. There have been well-reported constraints on supply of the best, retail-quality cars and – in a competitive remarketing environment – this is contributing to the general rise in values. Nowhere is this more apparent than in the partexchange sector at auction. January saw a record average monthly value achieved, a high point that was nearly matched in March. Values in the ‘budget’ car sector continue to be exceptionally competitive. This is almost certainly as a result of the tough economic conditions and the continued difficulty some families have in getting credit – this means a ‘cheaper’ car is the only one they can afford. The other significant factor to materially affect the market is the continued shortage of good-quality used cars. Low new car volumes and the trend for car owners to keep their vehicles for longer before changing means supply has been constricted for the past 18 months or so, with no sign this will change in the medium term. Used cars, it seems, will continue to be the battleground for profitability in the automotive sector for some time to come.

Who is Simon Henstock?

Simon is UK network operations director for BCA. Visit british-car-auctions.co.uk or call 0845 600 6644.

Strictly Trade only (VAT No. and verified bank details reqd). Purpose built 12 acre auction complex . Enclosed and heated auction halls. Fleet Car Sales every Monday & Thursday. Excellent variety of weekly stock from premium sources. Collection of vehicles 24 hours a day. Fixed cost buyer’s premium. Excellent on-site restaurant. Call now for account applications. Brindley Road, Stephenson Industrial Estate, Coalville, Leicestershire LE67 3HG T: 01530 833535 email: info@fleetauctiongroup.com www.fleetauctiongroup.com

78 | CarDealerMag.co.uk

NET GAINS.

..in association with Codeweavers

Guidance from an unlikely source... Five Commandments will help you with your web strategy

ometimes when you are looking for inspiration, it comes from the most unlikely sources. I am currently reading Richard Dawkins’ The God Delusion, which (ironically in this case) is his thesis on why he believes that God does not exist. Why is this relevant here? I hear you ask. Well I am up to the bit where he is discussing morality and he references an example of an atheist version of the 10 commandments. As I was reading, it struck me that the last five in the list fitted perfectly with a strategy for managing a web presence. As they would say in America, ‘go figure!’ So here’s the back end of his list: 6. Always seek to be learning something new. In the world of the internet the only thing that is guaranteed is change. If you’re not constantly learning you’ll fall behind your more active peers. Whether it’s Analytics, marketing, interface design, copywriting, social media or more technical disciplines, there is always plenty to learn. Pick something that interests you, that can add value and enjoy the experience. 7. Test all things; always check your ideas against the facts, and be ready to discard even a cherished belief if it does not conform to them. Software should be tested, everyone knows that, but do you objectively test the success of changes made to your website?

‘Question everything. This holds true for every aspect of business.’ Being scientific about the changes you make is important, but more important is having the selfbelief to admit failure in the face of the evidence and move on. Learn from your mistakes and try something else. 8. Never seek to censor or cut yourself off from dissent; always respect the right of others to disagree with you. The web and more specifically social media provides one of the most powerful tools for getting access to your customers’ real thoughts about your products and services. Use real customer feedback to refine your offer, improve your customer service and to become more effective at communicating your message. 9. Form independent opinions on the basis of your own reason and experience; do not allow yourself to be led blindly by others. It’s often

attractive to seize on the latest innovation or idea in the hope that it will be the silver bullet to solve all your problems. However, it’s my belief that your online presence should reflect the culture, ethics and ideas of your offline business. Use your instincts to be selective in the strategies you adopt on the web. That doesn’t mean don’t try things but instead understand how they will complement and reflect on the rest of your business. 10. Question everything. This commandment holds true for every aspect of business. If you’re not already doing this then you should probably hang up your guide and take up gardening. So there you have it, five commandments designed for moral guidance that may have some relevance to success on the web. Alternatively you could rely on divine intervention!

Who is Roland Schaack?

Roland is managing director at Codeweavers. Learn more about how he can help you at Codeweavers.net or call 0800 021 0888.

CarDealerMag.co.uk | 79

SHARES.

..in association with ASE-global.com

Calm restored as investors sit tight during the recession Dealers batten down the hatches to cut their debt and increase levels of profitability

fter a hectic couple of months, with a variety of results announcements and potential bid whispers, April proved a relatively quiet month among the listed motor retailers. The car dealers appear to have ‘battened down the hatches’ at the moment and are concentrating more on reducing debt and improving profitability from sites purchased over recent years rather than embarking on any buying spree in advance of the new block exemption regulations. As a result, announcements tend to be limited to trading updates and market movements outside of these based on assessments on when the economy will recover. The only significant announcement came from Cambria who published their interim results for the six months to February. On the face of it, performance was disappointing, coming in behind expectations and behind the same period for the prior year. This led to an 11 per cent drop in the share price, from where it has remained relatively static. The highlights in the

‘We see some large price fluctuations on relatively small news items.’ announcement centred around the core themes we have seen from all of the listed companies in recent months of a challenging climate, cost reduction programmes and concentration on balance sheet liquidity. No doubt management will be working to claw back the shortfall in their second half and there was a slightly positive outlook on March and April. Moving in the opposite direction was Pendragon, which showed a nice mid-month increase, albeit with relatively low volumes of shares changing hands. The share is now closing in on doubling its value from the start of 2012, clearly a very good return for speculators who bought in at the right time. The other listed shares traded within a relatively tight range as the market continued to

MARSHALL GROUP ADDS ANOTHER JAGUAR DEALERSHIP MARSHALL, the family-owned dealer group, has announced the completion of its acquisition of the Lincoln Jaguar business from the Cooperative Society. The acquisition brings the total number of Jaguar dealerships in the Marshall Group to four, and means that the dealer group has now doubled its representation with Jaguar in the last three years. Daksh Gupta, chief executive, Marshall Motor Holdings (pictured right), said: ‘Since 2008 we have been reshaping our portfolio and focusing on key and core brand partner relationships. This acquisition is consistent with this strategy to increase the depth of our representation. ‘It is also consistent with our strategy to derisk our previous over-exposure to Cambridge and Peterborough. ‘We have represented the Jaguar brand for nearly 40 years now and are delighted to be growing with Jaguar, especially at a time when their investment plans for the growth of their own business are so exciting.’ Under the terms of the deal the Lincoln Jaguar employees have transferred from the Co-op to Marshall. Jeremy Hicks, Jaguar Land Rover UK’s managing director, said: ‘Jaguar has a very exciting future and strong retail partners are fundamental to our success in the marketplace. Marshall is an important partner for Jaguar

digest the results issued over the past few months and to attempt to pick some sign of the direction the market is heading. Given that a number of the shares are relatively thinly held and are priced at well under £1, we see some large price fluctuations on relatively small news items. Monitoring Caffyns may well become significantly more interesting over the next few months following the appointment of a barrister by the Caffyns Shareholder Action Group to represent them in their ‘derivative action’ and ‘unfair prejudice’ cases against the company board. This is likely to lead to a ramping up of the action, however given the shareholding of the business it may have a limited impact on the share price. Whilst some of the trading results issued

Who is Mike Jones? He‘s executive chairman of ASE Global. If you want to talk to him about his column call 0161 493 1930 80 | CarDealerMag.co.uk

Daksh Gupta and it gives me great pleasure to see their continued growth with our brand in the UK. I wish them every success with their acquisition of the Lincoln Jaguar business.’

recently have been at the disappointing end of expectations this has been offset by some positive news over vehicle registrations, and retail registrations in particular. These have started the year strong and resulted in the SMMT revising their overall estimate for the year upwards. This has (probably quite rightly) not filtered through to a general positive outlook over the future for the listed motor retailers as it has been set against the backdrop of disappointing general economic news including a rise in motor trade insolvencies compared to the prior year. There will undoubtedly be some gains to be had for those investors who correctly predict the timing of an upturn in the market, although it feels like we may have to wait out a quiet remainder of 2012 before we get there.

the fleet.

longtermer

Kia Rio: Second report Our well-equipped Kia Rio shows why the Korean brand is the fastest growing in Europe.

second opinion

Off to the east...

ia executives said they wouldn’t bore us with a normal Powerpoint presentation, made up of press photos of smiling people and data tables charting compression ratios and suchlike. This was the press conference for the Kia Cee’d and it wasn’t a bore-fest, though – it was something much worse. It was a show of arrogance. You see the old Cee’d was an epiphany moment for Kia. Launched in 2006, Kia had a credible car to compete against the Europeans – one that was built rather well, looked rather good and, crucially, launched the much-praised seven-year warranty. It was an apocalyptic moment. Kia now refer to the years before 2006 as BC and the years after as AC. In other words, Before Cee’d and After Cee’d. Cringe-worthy, isn’t it? You can’t blame them, though. In the year-todate, Kia is now the fastest-growing brand in Europe. And so far this year in the UK, the Korean firm has sold 22,331 cars. Kia now holds a 3.6 per cent market share in the UK. That slice of the UK market is thanks in no small part to the Rio. Coincidentally my trusty steed to the launch of the new Cee’d in sunny Spain was our long-term Rio, and it was the first time I had got behind the wheel of it since it arrived at Car Dealer towers. LB61 UVL has very much been taken to Car Dealer’s heart with some fights in

the office during April for the keys – and I can see why. I’ve always thought VW were the kings of specification levels, but Kia could well take that title. You see, my experience with the Kia Rio has only been with the more poverty-spec cars. And our car, with its dash of chrome here, LED lights there, and super smart twin-tone alloys, looks a world apart from lesser models. With a couple of comfy chairs, a decent boot, a perfectly acceptable six-speed ‘box, and a super frugal, yet lively, diesel under its bonnet, I felt slightly warm while driving it. Despite having been impressed with Cee’d on my trip to Spain, I can’t help but feel it’s with the Rio that Kia has struck gold in the hatchback sector. While the new Cee’d is a very fine car indeed, it’s likely to be as pricey as the C-segment’s best and, if buyers opt for the piano black and brown leather option, it could be a bit bling-bling. It’s also a hotchpotch of Astra, Bravo, Civic and Leon in the looks department. Faults on LB61 UVL this month? None to report, although our headlamp problem seems to have sorted itself out thanks to a bit of adjustment of the switch. We are clever, you know. JAMES BATCHELOR

ANOTHER long drive in the Rio for me this month. Last month I headed due north to Sunderland, this time it was the Far East. Well, Norwich. And on the way I was dropping in to Ford’s Chelmsford HQ to witness the UK unveiling of the Blue Oval’s new compact MPV, the clever B-Max (see p19). The distinguishing feature of this particular journey was the absolutely atrocious driving conditions on the A3, M25 and so on as I headed towards East Anglia. Rain doesn’t begin to describe it... but the Rio at no point felt out of its depth (sorry). With its assured roadholding and solid steering, a potentially nightmarish drive at least became reasonably bearable. DAVE BROWN

the knowledge Model: Kia Rio 1.4 CRDI ‘3’ Eco Price: £14,295 Engine: 1.4-litre, 3cyl Power: 89bhp, 90Nm Max speed: 107mph 0-60mph: 13.7s MPG (comb’d): 70.6 Emissions: 105g/km Mileage this month: 4,695 Costs this month: £0

This month’s highlight: The car showed its almost amphibious qualities on a rain-drenched M25.

CarDealerMag.co.uk | 81

data file.

Batchelor

BACKFIRED

Could this have been the perfect buying journey?

o the utter incredulity of the Car Dealer office, I’ve bought a car. It’s a Mini Cooper S finished in a fetching shade of Laser Blue, and has something called a Boost CD system. It’s a jolly thing. But that’s not what I want to talk about. I signed on the dotted line one week after I penned my angry words in this space last month. In fact, I enquired about the car at Sytner Sunningdale, via email, at 5.30pm on Good Friday while we were signing off Issue 50. And so, without realising it, I had pushed a button that kick-started what could be the perfect used car buying transaction. At 8.44am the next morning a email plopped into my inbox thanking me for my enquiry, and by midday I’d been contacted by a lovely salesman called Steven who attached some extra highquality photos of the car. Further conversations about the Mini continued over email for the next few days, and by the following Saturday, I was in the showroom with my new best mate Steve, chatting about the weather over a cup of Earl Grey at Steve’s Union Flag desk. It was awfully Miss Marple-like. Then came the valuation of my part-exchange. I’d done all my homework and knew the book price for it – and, guess what? Steve’s opening bid was £300 shy of what I wanted. So we did what Mike Brewer does all of the time and met in the middle, and Steve even slashed another £200 off the Mini’s screen price. The Mini would also have a service carried out on it five months ahead of schedule free of charge. Worried Noel Edmonds would jump out the back of a Clubman with a camera crew in some elaborate set-up, I fled the showroom thinking it was too good to be true. It wasn’t and I’m a little ashamed for thinking it could be anything but. However, no matter what we all say, good service is unfortunately a rare occurrence these days. And a transaction where both the dealer and the miserable customer is happy is ever rarer. But it’s lovely when it does all come together – just like it should.

‘Worried, I fled the showroom thinking it was too good to be true.’

Who is James Batchelor?

Award-winning Car Dealer writer James is one of the fastest-rising new talents in motoring journalism. Read him here every month. 82 | CarDealerMag.co.uk

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FEATURED LISTING: Car dealer club FREE LEGAL ADVICE with every car dealer subscription CAR DEALER CLUB gives dealers of all sizes access to free legal advice from our motor trade lawyers worth £195. Members get a copy of Car Dealer Magazine every month as well as access to a host of discounts from motor trade suppliers – all for a paltry £34.99 annual subscription! This offer is only available to new subscribers, so if you haven’t renewed your subscription then you need to do so to gain access to this very special offer. Signing up is simple. Type CarDealerClub.com into a web browser

CarDealer.Club to be taken straight to the section on our website where you can find out more and join up! Alternatively you can send us a cheque for £34.99 made payable to Blackball Media Ltd to Car Dealer Club, Blackball Media, Endeavour Quay, Mumby Road, Gosport, Hants, PO12 1AH and we’ll send you details of your Car Dealer Club membership by return post.

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mini test: Seat Mii

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Meet the first small Seat since the best-selling Arosa. Sister car to the VW Up and Skoda Citigo, this is the VW Group’s latest platform-sharing masterplan. Designed for the city, it combines a low-capacity threecylinder engine with snappy steering and chuckable handling. The Seat design looks sharp too and is likely to appeal to youngsters and pensioners alike. We liked the Mii. It’s simple, good fun to drive and looks stylish. Key to its success will be pricing and deals.

W: centralcarauctions.com T: 0141 773 6000 E: info@centralcarauctions.co.uk Info: Scotland’s largest indoor auction. More range, more choice with 1,400 vehicles weekly, Mon, Wed & Fri or online via LiveBid.

Which consumers will choose – the Mii, the VW up or the Skoda Citigo – is likely to come down to badge loyalty or simply which dealership is closest. Price: From £7,845, tested in Issue 46

W: autoprotect.net T: 0871 384 1167 E: sales@autoprotect.net Info: Providers of warranty, GAP and other sources of additional dealer income. Backed by dedicated support teams and IT systems.

W: drymotive.com T: 0845 8540057 E: sales@drymotive.co.uk Info: Suppliers of waterless car cleaning products that are quick and easy to use and produce an amazing quality finish.

W: martec.co.uk T: 0844 854 9669 E: training@martec.co.uk Info: Helping you deliver improved and more rewarding customer experiences, through the provision of Business Improvement Solutions.

Insurance

Auctions

Keytracker Ltd

Vehicle Remarketing

Automotive CRM

Think Insurance

HBC

Keytracker Ltd

mfldirect.co.uk

Contact Advantage Limited

W: think-ins.co.uk T: 0844 573 2850 E: enquiries@think-ins.co.uk Info: Trade insurance experts. Road risks and/or combined. Instalments. 10% new client discount. Liabilities. Up to 75% bonus discount.

W: hbc.co.uk T: 01268 696444 E: info@hbc.co.uk Info: The safest hands in salvage, HBC are prompt & efficient and operate in accordance with current industry guidelines.

W: keytracker.com T: 0121 559 9000 E: sales@keytracker.com Info: No more lost keys. Best prices complete systems from just 10p per key! Seals, pegs & hangers from stock.

W: mfldirect.co.uk T: 0870 6000 288 E: sales@mfldirect.co.uk Info: For the largest selection of low mileage, single owner, dealer maintained vehicles available to the UK trade see mfldirect.co.uk

W: contact-advantage.com T: 08452 26 26 50 E: info@contact-advantage.com Info: Use Contact Advantage to drive efficiencies, enhance service, increase profitability and improve customer retention.

Finance

Valeting services

Warranties

mini test: Volkswagen Amarok

First Response

National Car Cleaning Company

WMS

Car dealer says HHHHH

W: frfl.co.uk T: 0115 946 6370 E: Visit bit.ly/firstresponse Info: We always encourage our returning customers to visit the same dealer for their next car leading to Many Happy Returns!

W: nationalcarclean.co.uk T: 01268 565050 E: sales@nationalcarclean.co.uk Info: With 30 years of excellence in vehicle valeting, we have an unparalleled reputation for quality on-site vehicle preparation.

W: wmsgroupuk.com T: 0844 477 4909 E: sales@wmsgroupuk.com Info: Experience, expertise, leadership and innovation. The nation’s favourite. The dealer’s preferred partner.

W: netcars.com T: 0800 138 9135 E: info@netcars.com Info: Only pay for enquiries with the UK’s fastest growing car sales website.

This is Volkswagen’s offering in the pickup market and trades upon the firm’s strong brand perceptions among consumers of durability, reliability and competitive pricing. It’s refined and feels dependable if a bit too dull. But the Amarok is let down badly by poor steering feel and engines that feel too underpowered. Overall though, this is a quality product from Volkswagen and shakes up a sector dominated by the Japanese.

Finance

Wholesales

Online Advertising

DSG Finance

Carfleet Wholesale Ltd

Netcars.com

W: itsabsolutelyfree.co.uk T: 0844 880 0660 E: absolutely@dsgfs.com Info: Give your customers an improved online experience by presenting finance options that they can configure themselves.

W: carfleetwholesale.co.uk T: 0151 356 1200 E: sales@carfleetwholesale.co.uk Info: We are the number one supplier to the trade, providing the cheapest nearly new vehicles in the country.

Price: From £17,995 (ex. VAT), tested in Issue 45

Finance

Warranties

Finance

Auctions

Online advertising

Black Horse

Car Care Plan

Moneybarn

FullAuction

UsedCar.co.uk

W: blackhorse.co.uk/Motor T: 02921 386338 E: michael.mcpartlin@blackhorse.co.uk Info: We’re the specialists in finance, offering vehicle finance at point of sale though our network of over 7,000 dealers.

W: carcareplan.co.uk T: 0844 573 7591 E: salesinfo@carcareplan.co.uk Info: Choose the market leading supplier of vehicle warranty and GAP insurance – 1m customers every year can’t be wrong!

Getting your company featured here is more affordable than you imagine. Here’s why

W: moneybarn.com T: 0845 50 50 192 E: mail@moneybarn.com Info: The leading non-prime car finance provider, offering finance for consumers with impaired credit via a nationwide broker network.

W: www.fullauction.co.uk T: 08455 611224 E: fullauction@coopersolutions.co.uk Info: Trade-only, online auction site. Free to list, buy and register. Visit our website or call the telephone number above.

W: UsedCar.co.uk T: 01254 260448 E: support@UsedCar.co.uk Info: Free used car advertising for car dealers, that really works, with absolutely no hidden costs.

Prices for 12-month listings: £29 per month. Single months are £49 per month

Prices exclude VAT. Adverts are invoiced after it has been included in the magazine. 12-month bookings are payable up front.

CarDealerMag.co.uk | 83

data file.

James Litton TRADER TALES

Views of pensioners and parents more important

uccess in the motor trade is all about spin. Volume, profit or growth and many others are used as a PR yardstick depending on which manufacturer you work for but there is one area I find very interesting. Fiat leads Renault at the head of this field, BMW do not even get a mention and Rover are more successful than Mercedes. I am talking about the European car of the year. Having had a used car business for five years, I can – without fear of contradiction – tell you that the Peugeot 307 is one of the most heinous cars that has ever been produced. Not even the collective intellect of the laboratories of Apple would understand some of the electrical mysteries provided by this car yet in 2002, a team of motoring hacks deemed it worthy of this lofty accolade. The year 1998 will be remembered as the year that Michael Owen burst onto the international football scene with a wonder goal but for Alfistas, it was the year the 156 beat the MKIV Golf into second place. Fast forward to 2012 and most 156 models are consigned to parts bins but the same cannot be said for the Golf. The Alfa Romeo 156 isn’t the only example where the jurors have given the title to the wrong car. There’s many more; for instance in 1990, the Citroen XM won despite it being plagued by electrical gremlins (oh, what a surprise) making it unpopular with customers. There’s the Fiat Bravo and Brava brothers in 1996, and let’s not forget the Renault Megane with that rear-end in 2003. The belt has not always been held by bad cars. The Fiat 500 won in 2008, 2009’s winner was the VW Polo and the Nissan Micra won in 1993. But to me this whole process seems like a waste of time. The general car buyer will not be persuaded by what a team of European motoring hacks have to say. They view cars through the eyes of the enthusiast and not the eyes of the parent or pensioner.

‘You may prolong the pain and agony for as long as possible...’

Traderdir Alfa Romeo

Alfa Romeo

Sturgess Alfa Romeo

Benfield Alfa Romeo

Dax Pearce dax.pearce@Benfield motorgroup.com Alfa stock wanted up to 40,000 miles. n Call for immediate bid. 07501 257220 or 0191 211 2200

Mangoletsi (Holdings) Ltd. London Road (A50), Allostock, Knutsford, Cheshire, WA16 9NS Tel: 01565 722899 Fax: 01565 722229

Aston Martin

Audi

HWM Aston Martin

Wimbledon Carriage Company Limited

Walton & Epsom Audi

John Crisp 07885 211872

Mark Loughnane 01932 220404 07739 519306

BMW

Bentley

Williams Rochdale

Vines Group

Harwoods

Bentley

Chrysler

Daihatsu

Jack Barclay Bentley

Horsham Car Centre

Alan Nicholas 07703199478 alan@horshamcarcentre.co.uk Best buyer for all late Chrysler/ Jeep

Stephen Barnard 0208 504 0017

Daihatsu

Ferrari

Proven Daihatsu

HR Owen Ferrari Nick Carey

Scott Allen 0116 275 8800 scottallen@ sturgesscars.co.uk

Paul Spires paul.spires@hwm.co.uk 01932 240611 07850 326755

Craig Fenlon 01706 717700 07808 092110

Derek Bennett 020 7629 7444 07713 887 88

Keith Pattison 01428 652554 07771 547406

Dominic McConnon 07776 246905 dominic.mcconnon@ vinesguildford.bmw-net.co.uk n Buying used BMWs up to five years old

Simon Elkin 01798 877211 07803 088711

Woodford Motor Co Ltd

Monza – Ferrari

nick.carey@hrowen.co.uk 07824 362229

Andrew Ludlow ferraribuyer@ntlworld.com 07889 305 053

Ferrari

Fiat

Maranello Ferrari

Glyn Hopkin Ltd

Sturgess Fiat

John Dutton 07817 019 456

Glyn Hopkin 07730 711889

Perry Beaver 0116 254 1717 perrybeaver@sturgesscars.co.uk

Who is James Litton?

James is sales manager at Tony Purslow Mercedes Benz, Guildford. He always has something to say about the industry he loves. 84 | CarDealerMag.co.uk

To have your details included here log on to CarDealerMagazine.co.uk/trader-directory.htm

ectory

Finding the right cars at the right prices isn’t always that easy. On top of that, selling cars that you don’t necessarily want to put on the forecourt can be tough too. Our Trader Directory aims to alleviate these problems. Instead of thumbing through endless pages in

price guides looking for the right trader, you can consult the Trader Directory, either in the magazine or online, and find them right away. If you’d like to be included you can submit your details in the Directory find out how at the bottom of this page.

Ford

Honda

Benfield

Benfield Alfa Romeo

Lifestyle Ford

Honda

Thames Honda Group

Honda

Hyundai

Jaguar

Holdcroft Honda

Bushey Heath Hyundai

Hatfield Hyundai

Sturgess Jaguar

Lookers Park Royal

Jeep

Kia

Lexus

Land Rover

Horsham Car Centre

Tower Hill Garage

Chapelhouse Kia

Lexus Twickenham

Sturgess Land Rover

Des Sammon des.sammon@benfield-ford. co.uk 07831 828024

Luke Regan / Chris Thursfield 07971 543884 07813 737 921

Alan Nicholas 07703199478 alan@horshamcarcentre.co.uk Best buyer for all late Chrysler/ Jeep

Dax Pearce dax.pearce@Benfield motorgroup.com Alfa stock wanted up to 40,000 miles. n Call for immediate bid. 07501 257220 or 0191 211 2200

Jon O’Donoghue 0208 420 5100 07976 177 959

Lee Gilmour 01923 263700 07768 367085

Richard Walker 07748 177889

Mark Littler/Tim Barnes 0161 767 9500 07920 599 394 07787 921 222

Andy / Neil 01925 570800 07891 531129 07825 311 297

Brayley Honda Mark Corr 07812 342 635

Chris Allen chrisallen@sturgess jaguar.co.uk 0116 282 6868

Dave Cooper / Steve Gurr 07831 704134 07921 408983

Jerome Chandiram 0208 845 3551

parkroyaljaguar@lookers.co.uk 0208 938 1300 07534 927 821

Mike Mongiello mikemongiello@sturgess cars.co.uk 0116 282 6969

Land Rover

mini test: Infiniti FX30dS

Lotus

Maserati

Beadles Land Rover

Car dealer says HHHHH

Murray Motor Company

Meridien Modena

Greg Wilcox g.wilcox@beadles-landrover. co.uk 07740 717209

This is neither luxurious nor sporty. But the 3.0-litre diesel lump does make sense.

Brandon Ware 0131 200 8888 0750 326 0186

Warren Butt 02380 283404 07860 530703

Price: £46,845, Issue 45

Maserati

Mazda

Mini

Want this spot?

Nissan

HR Owen

Lifestyle Mazda

Vines Group

Your advert here

Nissan

Toyota

Volvo

General

Hyundai

Want this spot?

Currie Motors Toyota

Sturgess Volvo

Barry Freedman

Sturgess Hyundai

Your advert here

Nick Carey nick.carey@hrowen.co.uk 07824 362229

Dave Cooper / Steve Gurr 07831 704134 07921 408983

Mark Spowage 01293 845045 07974 770020

Scott Allen 0116 275 8800 scottallen@ sturgesscars.co.uk

There’s also a more comprehensive list of traders on the website, updated throughout the month

Dominic McConnon Buying used MINIs up to 5 years old 07776 246905 dominic.mcconnon @vinesguildford.bmw-net.co.uk

01753 543105 07836 338694 barry.freedman@virgin.net n Trade buyer of PX vehicles anything up to £8k

Making sure you’re in front of other dealers when they need to trade their cars on is vital. And for £30 per month you’d be mad to miss out!

Perry Beaver perrybeaver@sturgess cars.co.uk 0116 2541717

Sturgess Nissan Perry Beaver 0116 254 1717 perrybeaver@sturgesscars.co.uk

Making sure you’re in front of other dealers when they need to trade their cars on is vital. And for £30 per month can you afford to miss out?

Prices for six month listings: £29.99 On Website Or £39.99 for Magazine & Website.

Payments can be made online via credit or debit card. Or send your cheque made payable to Blackball Media Ltd to Car Dealer, Endeavour Quay, Mumby Road, Gosport, Hants PO12 1AH. Your details will appear in the next issue.

CarDealerMag.co.uk | 85

workshops.

Want to be included in our new section? Call (023) 9252 2434

Talented Lee over the moon with silver medal Technician will be heading to South Korea after his near faultless performance in a variety of tests.

lthough barely a month old, a new car dealership in Wakefield can already lay claim to having the second best technician in the whole of the UK. Harratts Kia Wakefield, which opened last month in the city, announced that senior technician, Lee Crawshaw, had won the coveted Silver Medal for the UK at the Kia Skill World Cup. The accolade, which comes a result of Crawshaw’s near faultless performance in a variety of competence and diagnostic tests at the Kia Academy Training Centre in Nottingham, means he will now represent the UK at the European Final at Kia Motors Europe headquarters in Frankfurt in May. Crawshaw will also take a five-day trip to South Korea to Kia’s global headquarters where he will go head-to-head against other national champions to

win a coveted global ranking and possible podium finish at the World Skills Cup. Harratts Kia Wakefield is part of familyowned and run Harratts Motor Group, which recently announced the opening of a new £3m headquarters with state-of-the-art facilities. Its Kia franchise on Denby Dale Road opened last month. Gareth Bottomley, dealer principal of Harratts Kia Wakefield, said: ‘We’re thrilled for Lee to have won silver across the UK and to be on his way to the World Cup in South Korea. ‘This is a fantastic accolade and proof, if any were needed, that Harratts is committed to training and equipping the best staff in the industry. ‘Lee can justifiably be very proud of his achievement and we look forward to hearing how he performs in South Korea.

‘What’s more, for our franchise to be so young, yet to have produced such a worthy runner-up is a great accolade.’ Crawshaw, pictured above with Bottomley, said: ‘I was over the moon to hear that I’d come second across the UK and to win all-expenses paid trips to Frankfurt and South Korea to take part in the European and World Skills Cup is great news too. ‘I look forward to competing against my peers from across the world and I aim to return with a coveted global technician ranking under my belt.’

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ÜÜÜ° °V 86 | CarDealerMag.co.uk

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Keep positive, and don’t let pressure or anxiety get to you

t a recent annual company conference, the question was asked by one of our employees: What does the future hold for the large population of car dealers in the UK? Having been out in the field the previous day, and having shared my views with our CEO moments prior to the conference commencing, the microphone was passed in my direction. On a cold afternoon the day before, the last dealer appointment was approaching. Most of the meetings we had been involved in during the day had been fairly productive, but not everyone we’d spoken to had been in a positive frame of mind. And this appointment was about to put a much ‘darker’ perspective on things as the car dealer who sat opposite us was looking defeated. His mind-set was not good. He could see that customers were finding it tough to be able to afford a new car; he thought that advertising his stock was prohibitively expensive – and he was gravely concerned about the low level of footfall his pitch was experiencing. We listened sympathetically of course. But my belief is that while this dealer’s current mind-set exists, nothing will improve for him or his staff. My response to the question posed at the conference was as follows. The future will be very good for 20-30 per cent of the car dealer population as not only will they survive, but their sales and profit returns will be significantly better than what they have produced over the past two to three years. Unfortunately, for the rest, a tidal wave of pressure, anxiety and fear will ruin their chances. On reflection, my beliefs, and the words that came out of my mouth at our company conference, were not

Jonathan

Such TIME IS MONEY

ground-breaking or revolutionary. My philosophy has been conditioned by several other, similar, dealer visits, and is aligned to the following thinking. More than 100 years ago Joseph Juran, a business management consultant, proposed the ‘Pareto Principle’ where he believed that 80 per cent of the results come from 20 per cent of the population. This theory places people in two categories: the ‘performers’ and the ‘rest’. The key is to make sure you do everything possible to avoid being in the ‘rest’. This same principle can be applied to our very own industry and by looking at the following two points you can understand which group you fall into, and also

‘The right attitude is paramount to any business’s success and longevity.’ determine what you need to do next. Firstly, the right attitude is paramount to any business’s success and longevity. Trading conditions may be hard; and may get harder soon. Nevertheless we must stay positive, and jump the hurdles as they approach. Secondly we must ‘do something’ in terms of attracting business. As an example, I spoke to two dealers just last week. One has just sent out a mass marketing campaign to existing customers in the form of a letter with an offer, and the other hasn’t got the tenacity or desire to entertain such an idea. It goes without saying which dealer has the better attitude and desire to ‘do something’ in order to ensure their longevity and maintain their existence.

Who is Jonathan Such? Such is regional sales manager for First Response Finance. You can contact him on 07917 781608 or email jons@frfl.co.uk

Coming next month

If there’s something you think we should be covering get in touch. Our details are on page three 90 | CarDealerMag.co.uk

road trip

Epic adventure in one tiny Skoda

FULL REPORT

Behind the scenes of our Lead Generation conference

interview

JCT600’s John Tordoff

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