Car Dealer Magazine: Issue 59

INSIDE: Which F1 driver has opened a car dealership? p10

Business Publication of the Year

Issue 59 | February 2013 | CarDealerMag.co.uk | £3.50

BIG MIKE’S

FAVOURITE CARS OF ALL TIME

We let the big man off the leash as he picks his winning motors

MEET THE DEALERS WHO TRIUMPHED IN OUR INAUGURAL USED CAR GONGS CAR INDUSTRY’S BIGGEST NAMES PREDICT WHAT’S IN STORE FOR 2013

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IGNITION.

EDITORIAL EDITOR James Batchelor james.batchelor@blackballmedia.co.uk Twitter: @jrrbatchelor STAFF WRITER Jon Reay jon@blackballmedia.co.uk Twitter: @JonReay head of design Graeme Windell graeme@blackballmedia.co.uk Twitter: @CarDealerGraeme

ADVERTISING 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 Advertising EXECUTIVE Pippa Marsden pippa@blackballmedia.co.uk Twitter: @CarDealerpip

SUITS MANAGING DIRECTOR James Baggott james@blackballmedia.co.uk Twitter: @CarDealerEd OPERATIONS DIRECTOR Andy Entwistle andy@blackballmedia.co.uk Twitter: @CarDealerAndy

Contributors

Mike Jones, Tim Watson, James Litton, Tim Naylor, Tim Smith, Tim Heavisides, Jonathan Such, Dave Brown and Mal Hay

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a difference a year Welcome. WHAT makes. It was in December

2011 when James Baggott bellowed at me from his draughty office to come in and have a chat. ‘Right Batch – I’ve had an idea,’ he said, pointing and waving his arms around in a way that if you didn’t know him you would deem offensive.

Feature ideas normally start like that; and then they quickly descend into a massive headache to set up. Automotive Influencers 2012 was one of those haemorrhaging aches to organise – but organise we did and we had what I believe to be one of the most impressive Car Dealer features ever.

Now, 12 months later, I feel bold enough to declare 2013’s Automotive Influencers feature is even better. This year we hosted it at the RAC Club which, if you don’t know it, is situated in the poshest part of London and is one of the most old-school, swanky, marvellous venues around. Rich in history and importance, it’s a place which is hugely well regarded in motoring circles.

The day was set to begin at 9am – but by 8.30 we had 14 of our 15 influencers there, ready and waiting. The club’s Segrave Room was buzzing with the cream of manufacturer big-wigs and industry grandees, all chatting about how Christmas was a distant memory; how dreadful the trains were that morning; and how sparing a few hours away from the office with no access to phones (club rules state mobiles are banned everywhere but the lavatories) was actually rather refreshing.

Naturally, talk did occasionally turn to the business of selling cars and what 2013 holds. But it’s very informal – just the way we intended. Hyundai UK president and CEO Tony Whitehorn tells me that, for Hyundai, sales have plateaued, largely because of such a successful 2012. Citroen’s chief Linda Jackson nods in agreement and remarks that with sales being on such a steady path, it’s about building the brand. Whitehorn agrees and elaborates, explaining the quality of Hyundai’s cars is here, but the brand’s perception is there – 2013’s task is moving the two closer. Jackson

agrees. Meanwhile, Mark Ovenden, Ford MD, chats about forthcoming cars; Daksh Gupta, Marshall CEO, about how he’s missed a Kia dealer conference to attend our feature; Google’s Alex Rose tells how tablet searches grew nearly 10 per cent in one week over Christmas; and Erhard Paulat, of GMAC, says he’s heading to Frankfurt later that day. AA president Edmund King’s in the corner tweeting – getting away with using his phone.

By 1pm, normal business life is resumed for these automotive influencers. Back to 2013 targets and expectations. You can read what our 15 influencers think will happen over the next 12 months, on p34–57. They prove an interesting read and we hope you take something informative away from them.

BIG MIKE’S 50th Readers frequently tell us Big Mike is one of their favourite parts of the magazine. This month, the dealer who speaks with shocking honesty notches up his 50th column. Flick to p30 to read a special feature where the big man talks about the 50 favourite cars he’s bought and sold over his long and colourful career.

Meanwhile, we’ve given the Suppliers Guide a new year refresh to make it easier to find the perfect partner in 2013.

Find it at p70.

ALL CHANGE You may have guessed by now that the leader column hasn’t been written by James Baggott this month. In order to concentrate on other areas of the Blackball Media business, James has passed the editor’s baton to me. Don’t worry, he’ll still be writing the odd thing for the mag – it’s just my turn to bellow the ideas out now!

Enjoy the issue.

James Batchelor, editor

Winner: Best Business ‘This magazine brings its readers an insightful, engaging overview of their industry which Publication of the Year entertains as well as informs’ - award judges CarDealerMag.co.uk | 03

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34

INSIDE. ISSUE 59 I FEBRUARY 2013

Dashboard Letters

AUTOMOTIVE INFLUENCERS

UK to get Google Cars?

Mansell’s new dealership Car Dealer Conference That Was The Month

Car industry’s biggest names give their predictions for 2013

Nissan’s successful 2012

BIG MIKE

29

30

New Mercedes SL driven

Car Dealer favourite reveals his top 50 cars

Finance Around The World

Car Dealer Club

Forecourt 2013 Land Rover Freelander Jaguar XJ AWD Mercedes-Benz SL 350

Features Big Mike Automotive Influencers Talking Heads

26

‘‘

Data File

Land Rover’s 2013 Freelander tested in Canada

The Statistics

$BS%FBMFS

We believe we have cars that will appeal to a variety of customers Nigel Mansell’s new dealership

CE N E R E F N CO 2013

10

Get your free ticket to our new Car Dealer Conference

a month in A picture...

It would seem Batch’s new job hasn’t gone to his head. Instead of pinching the company credit card, the editor chose to lunch with Car Dealer’s Dave Brown in the modest surroundings of the Gosport chippy.

And yes, that pink tinting to the left is Dave’s fingers over the lens.

15

Commercials Auctions Right Click Trader Talk Driving Values CSI Files Suppliers Guide with Batch Trader Directory with Litton £50 car challenge Long Termer Report Workshops Shares Time is Money

07 09 10 15 17 18 20 22 24

26 27 29

30 34 58

60 62 65 66 67 68 69 70 72 74 75 76 78 82

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feedback.

Your comments via email at james.batchelor@blackballmedia.co.uk | Our website at CarDealerMag.co.uk | And from Twitter: Follow @CarDealerMag

Dacia’s on to a winner with Duster I really enjoyed your SUV feature last month, but I was a bit taken aback by something about the Dacia Duster… 1,000 pre-orders before there have even been any test drives?! Admittedly it’s a cheap car, but it’s not quite throw away money is it? I’m amazed that people are happy to put down a preorder without so much as driving one. The high percentage who opt for the posh version is a bit weird, too - though I suppose a top-of-the-range Dacia is about equal to a basic Renault!

Still, good to see a properly basic car on sale again. When Ford Fiestas cost nearer £15,000 these days it’s nice to see there is still an option for people who don’t want to spend a fortune on a new car. I sell cars that used to be at the cheaper end of things and have slowly crawled up, and every now and again the prices catch me off guard.

We do have a customer with one of the older, more basic models, and it’s always funny to see him make a fuss at the new models’ costs!

Derek Taylor via email

More clever tech

Your Fiesta review of last month got me thinking: Why don’t more OEMs introduce some sort of parent and child key system? Or at the very least, a way of locking a car’s top speed with a pass code of sorts.

Every week I get parents coming car shopping for something their kids can learn in and/or use, and every week I hear just how concerned they are about handing over the keys to something that could potentially kill them.

Seems to me this MyKey stuff is a pretty good way of limiting the damage - to the kids, and also the car. After all, more and more seems to get spent on these cars now too. I remember a time when a £50 Vauxhall Nova was enough to satisfy most. These days I get the impression £5,000 feels like scrimping.

Anyway, we’re a used dealer and haven’t had any of the new Fiestas filter through yet, but I reckon they’ll go down a storm when we do get our hands on them. There are just too

twitter comments

Car Dealer’s new editor When we announced that Batch was taking over from James Baggott as editor – read the full story: bit.ly/neweditor – there was lots of Twitter love. These are our favourites...

Congratulations James, really good news. @stephen_jury Congrats Batch! Will you be like the ‘chief’ in Superman? @philljones Big #congratulations to @JRRBatchelor for his appointment as editor at @CarDealerMag. Onwards and upwards all!

Halliwell Jones MINI @HJMINI Congratulations James - fully deserved! @alhenson

Fantastic news! Huge congratulations to @JRRBatchelor – always great to see young receptive UK editors given a chance.

@Jon_Quirk

Congratulations James. Good start to your year and well deserved.

Aston Barclay@AstonAuctions

Congratulations from all at @forduk

many teenagers that parents know they can’t trust. Then again, could probably work for untrustworthy speeding partners too...

Sarah Williams via email

Why the doom and gloom?

The number of dealers that seem to be going under is getting a little unnerving. I’m sure it’s probably nothing new, but the sheer quantity of them that have hit the rocks recently is worrying to say the least.

With Comet and now Jessops going under too, I’m beginning to wonder how the car industry is keeping afloat. I’m in a fairly small independent

@ebergg

place, and so I suppose I’m out of the main bulk of sales, but you do have to wonder why the number of successful dealers is falling if car sales are meant to be increasing.

Some say pre-registration is playing a part in altering the figures – but to a certain degree they always have!

It’s not even as though there’s an Amazon equivalent that’s nicking sales – so how can things be so doom and gloom if sales are so high? I don’t get it. It’s about time that more of the hard-earned money found its way into the upkeep of Britain’s roads.

Dan Evans

via email

Sick-soaked SLK results in the cat getting the cream . . .

LIKE anyone who is handed access to a few dozen different cars every month, I try and make the most out of a good situation: taking the odd one home here and there.

One night I took home a year-old SLK that had just come in. It was gleaming on the outside, and not half bad on the inside either - bit of a rarity to be honest.

It just so happened, of course, that this was the night my daughter’s beloved cat, Mr Whiskers (yes, really) became violently ill. With she and my partner both out of the house in our other car, the only choice was to shove Whiskers in his

cat box with some newspaper and head off to an emergency vet appointment in the SLK. I’m sure you can see where this is going. A mile down the road and some projectile cat vomit later, I had a year-old Mercedes that wasn’t quite as fresh as it used to be. The next morning I parked up the car, quickly put the keys back and hoped that would be the end of it - the car coincidentally going for a valet the next day.

It wasn’t. Seven days later I found myself showing a fairly well-to-do middle aged woman in her mid 60s around the forecourt, dismissing almost every

My

CONFESSION

car I showed her.

We arrived at the SLK, and she hopped in almost instantaneously. I refrained, but stuck my head in the passenger door - and quickly realised that the valet hadn’t quite covered up the events of the previous week. ‘Now this I like. It’s even got an expensive aroma,’ she dictated before I could so much as open my mouth. ‘Absolutely,’ I found myself replying. ‘It’s even still got that new car smell’.

A quick test drive later and she’d put down a deposit, apparently very happy with her new buy.

Needless to say, Whiskers found himself with a surprise bowl of cream that evening.

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One third of cars now come equipped with DAB radio bit.ly/DABradios

Google Cars helps dealers sell online...

Heavisides warranty wonders

At last, a genuine reason to be cheerful

S

...but no plans to bring service to the UK

S

earch engine giant Google has denied it’ll be introducing its new Google Cars product to the UK. Launched in the US this month, Google Cars is helping American dealers to sell their new car stock online.

In the UK it could be seen to be a major rival to the likes of Auto Trader. But Google says it has no plans to introduce the service to UK – at the moment.

‘As it stands we know of no plans to bring this feature to the UK,’ Google UK’s industry manager for automotive, Alex Rose, told us. ‘In fact, it’s only available in the San Francisco Bay area just now.

‘As I understand it, Google is thinking of extending to other areas within the US, though.’

Simply named ‘Google Cars’, the service is going head-to-head with other new car portals, and currently holds advertised models from a wide range of car manufacturers.

Ranging from Audi to Toyota with everything else in between, the site

offers buyers a few tools to skim quickly through the stock located near them, and concentrates on helping buyers find the best-priced example of a particular model.

Rather than – as on other vehicle advertising sites – requesting dealers upload their own pictures and descriptions, Google Cars relies on a database of studio images and text instead, ensuring that the only thing buyers see differentiating each example is its list price.

Rose suggests that the service may not even work quite as intended in this country – suggesting that the US’s landscape fits the product far better.

‘The reason it works well in the US is, simply, because dealers over there have enormous forecourts,’ he explained to us.

In other words, don’t expect the service to come here unmodified – and certainly not overnight.

The industry will undoubtedly be keeping a close eye on what Google is up to, but sadly for UK dealers, it doesn’t look like its stock will be appearing next to the search giant’s logo just yet.

Automotive Influencers – Page 34

Sunderland plant to build Infinitis from 2015 Premium brand Infiniti will be building cars in the UK from 2015 onwards, it has been announced.

Infiniti, Nissan’s luxury brand, will build its first premium compact car at its parent company’s Sunderland manufacturing facility in the north east of England from 2015.

The announcement represents a £250m investment into the facility, and is expected to secure a further 1,000 jobs at Sunderland and across the UK. 280 new jobs will be created at the Sunderland plant on top of an additional 1,000 jobs across the country; 60,000 Infiniti models will be made per year.

ome great news to greet the start of the new year and a genuine reason to be cheerful – new car registrations in 2012 were the highest for four years and topped the two million mark, according

to the SMMT. Even more encouragingly, the SMMT anticipates that demand for new cars will hold firm into 2013 – let’s hope buyers share its confidence.

It seems that everyone’s played their part.

Manufacturers are providing customers with stylish, desirable new cars, as well as exceptionally attractive retail and fleet offers and dealers have actively embraced the new trading environment by changing their business models and adapting their sales processes to make the most of the conditions.

It really is great news all round and not just for the direct benefits it generates for new car dealers. A steady and improving new car market has positive implications for the entire industry – it provides continuity and certainty for the UK’s manufacturing base, for the support and supply industries and for providers of associated products and services.

And of course for all UK dealers, it means rosier times than we’ve seen in recent years as customers start to recover their confidence and invest in their motoring, bringing with them new finance sales, GAP opportunities and service and maintenance potential.

The longer-term implications flow beyond the new car market. More new car registrations mean more trade-ins and with them come a higher number of used car transactions across the market.

With buyers of used cars looking for the new car experience without the price tag, it’s the perfect opportunity to provide solutions that bring customer back time after time.

There’s still a long way to go before the market is fully back on its feet, of course, but when good news in the industry has been as hard to come by as it has been in recent months, the announcement of more than two million car sales is something to be proud of.

Happy New Year, indeed.

‘The longer term implications flow beyond the new car market.’

Who is Tim Heavisides?

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

CarDealerMag.co.uk | 09

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Former F1 champ opens car dealership Now customers can impress their friends by saying they have just bought a car from Nigel Mansell

Y

ou might find you are treated with suspicion when you tell your friends you’ve just bought a car from a former F1 World Champion – unless, of course, you happen to live on Jersey.

That’s because – somewhat astonishingly – Nigel Mansell has started a dealership of his own, albeit with a bit of a twist. We caught up with general manager Steve Ainsworth, who is running The Mansell Collection alongside the F1 champion’s son, Leo. ‘The site is looking amazing!’ he told us, speaking of the ongoing renovation works. ‘We have kept all of the building’s original Art Deco features and character, working closely with Jersey’s Historic Society in the process. We’re very pleased with what we have achieved.’

And indeed, the dealership looks impressive.

With its 1930s design it stands out against the square, glass-box dealerships we are used to but it’s what’s inside that really sets the place apart.

The building houses a collection of the 59-yearold’s prized motorsport artefacts. Upstairs, past the used Citroens and Fords are beasts of a rather different nature. Three F1 cars from illustrious periods in Mansell’s career shine proudly under spotlights, tucked behind a chrome rail – a scene more reminiscent of a museum than a showroom. Behind them are portraits, photos

and artwork depicting the man himself and the various teams that have supported him along the way. Opposite there’s a blinding array of trophies, gold cups and prizes that leaves you in no doubt as to the calibre of the man whose surname sits over the door. Ainsworth says that the mini-museum of Mansell’s life has attracted attention before the dealership has opened.

‘The museum/collection will not be open to the public until March but the response we have had from local people, and from people using social media such as Twitter and Facebook, is extremely encouraging,’ Ainsworth told us.

‘It is definitely the only dealership we are aware of that you can purchase your next car and have a look at Nigel’s personal collection of his original F1 and Indy Car trophies and racing cars.’

That shouldn’t be the only draw, though. The team know the business needs more than sheer visitor numbers to succeed – and to help them stand out further, they’ve employed a rather ‘personal’ way of selling cars.

While the showroom downstairs will hold a small selection of vehicles, TMC mostly concentrates on sourcing vehicles specifically for customers. As the website puts it, they can ‘find that perfect car for you’.

‘We feel that this is an aspect of our business that could grow,’ says Ainsworth. ‘As we are on

An earlier incarnation of the building an island, we do not always have the same level of choice or variety of cars one would have in the mainland. Rather than the customer going to the car, we will bring the car to the customer. ‘ Importing cars might sound like a premium service but Ainsworth is keen to stress that it’s not necessarily about prestige vehicles and their

celebrities who should have a dealership, but don’t...

ALAN PARTRIDGE

STEPHEN FRY

Sells? Lexi ‘I sell Lexi (that’s the plural of ‘‘Lexus’’) because I like to think they’re the Japanese Mercedes. Anyone who drives anything else is “sa-a-a-ad”.’

He sold 14 new Lexi in 2012.

Sells? Used black cabs Only dealing with very intelligent people, Fry would bore potential owners into buying a cab so they could use bus lanes freely.

��| CarDealerMag.co.uk

Arnold Schwarzenegger Sells? Hummers His stock of used Hummers – mostly ex-Military – could be customised with bullet holes or given the ‘justblown-up’ look by the star.

Boris Johnson

ALAN SUGAR

Sells? Rusty Toyota Priuses If one of his bikes (complete with pigeon poo patina), didn’t appeal, Boris will sell you a rather boring Prius instead. Oyster card holders would get a 10 per cent discount, apparently.

Sells? Second-hand Rollers His Lordship would sell you an old Roller for new RollsRoyce money. Nick would watch over you carefully while you inspect the motor and Karen would be on reception. Looking surly.

Toyota Land Cruiser holds its value the best bit.ly/Landcruisertriumph

MANSELL HISTORY

F1 cars join other rare models

Nigel Mansell

customers. ‘We believe we have cars that will appeal to a variety of customers, whether they want a Ferrari California or Citroen C3 Picasso.’

The emphasis is instead on offering a ‘premium service’ – giving customers a different type of experience. ‘We feel we have created a environment in which our customers can feel relaxed in and enjoy their visit – whether that’s to the museum, our conferencing facilities or indeed, purchasing their new car,’ says Ainsworth. At the time of going to press, work on The Mansell Collection was still underway before its January 11 opening. We wish the team the best of luck and we’ll certainly be keeping an eye on what must be a unique dealership.

Ready for business in 2013

BORN near Birmingham in 1953, Mansell’s motorsport career really took off in the late 1970s - winning the British Formula Ford championship in 1977, despite coming ‘perilously close’ to quadriplegia in an accident during testing.

Two years after that, he was once again involved in a severe collision, but that wasn’t enough to put him off, and he was soon trying out with Lotus - staying with the team until 1985.

It was then that his luck started to change - with Mansell winning 11 races over an 18 month period.

British motorsport fans took him to their hearts after he won the 1992 F1 World Championship with Williams. He then announced his departure from the sport, and went to America and to take part in the IndyCar championship, becoming its 1993 champ.

A year later and he returned to F1, winning a race in Australia while with Williams, but eventually quit in 1995, retiring aged 41, after 187 races and 15 seasons.

This isn’t the first time that Nigel has ventured into the used car business.

Mansell previously had a dealership specialising in high performance vehicles: Nigel Mansell Sports Cars, later Westover Sports Cars, set up in the early 1990s.

DAVID BECKHAM

Michael Schumacher

Kevin McCloud

Katie Price

DAVID CAMERON

Sells? Modified SUVs Specialising in big things, ruined by magpie-like footballers, Beckham sells only the priciest cars, each one ruined by a peabrained pig bladder kicker.

Sells? Damaged Ferraris Deals mostly in Ferraris, but ones that have been driven into other people. He spends most of his time driving them out of the showroom and into the service area.

Only sells to Germans.

Sells? Eco things In his eco-friendly dealership, McCloud would verbally berate you for choosing to buy a car in the first place before suggesting 50-mile range Twizys to 1,000-mile a week sales reps. Or an old Saab.

Sells? Anything pink This is her fourth dealership – she left the last three in acrimonious splits – and the buying process is filmed for an ITV2 programme. Stock is wide and varied, but only comes in one colour… pink.

Sells? Us down the river Fed up of ‘leading’ the country, our leader has jacked in his day job to sell anything that floats. All cars come with extremely high tax bills and can’t be driven in Europe. Showroom only open to old Etonians.

CarDealerMag.co.uk | 11

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T

his year Car Dealer is sporting a programme of new and improved events – and arguably taking top bill is the Car Dealer Conference. New this year, the 2013 Car Dealer Conference – at the Heritage Motor Centre at Gaydon, Warwickshire, on May 3 – is the ideal event for dealers to learn how to increase their profits.

It builds on the magazine’s popular and successful events of the past, while adding new features to make the conference as helpful and informative as possible.

The event will be the perfect way for attendees to find out how to improve their business by adding profit to their bottom line with a focus on lead generation, maximising sales and F&I. The day kicks off with coffee and pastries at 9am, with a welcome speech from Car Dealer editor James Batchelor at 10am.

Delegates will hear from five key speakers before a coffee break at 11.25 in the centre’s exhibition hall which will host an Expo of industry stands, which promises to be an exciting

and important part of the conference. The Heritage Motor Centre’s exhibition hall will be taken over by around 20 exhibitors who will be on hand to chat about the products and services they can offer to dealers.

After the break, five further speakers will have their chance to give dealers the best advice going.

Lunch will follow in the centre’s exhibition hall from 13.15 – when there will be another chance to explore the Expo and talk to the exhibitors.

But the really big news about the 2013 Car Dealer Conference is the live Q&A session.

Chaired by the editor after lunch, dealers will hear from a hand-picked panel of industry commentators and experts – the full line-up will be revealed in the next issue of Car Dealer.

The Q&A session will be the perfect opportunity for dealers to ask burning questions on how to make more profit, maximise sales and F&I or simply say what they think of trading conditions in 2013.

Afterwards, attendees are more than welcome to spend the afternoon exploring the museum.

The Expo offers a chance to network Registration for the event is open now. To book a space – which is FREE – email the editor at james.batchelor@blackballmedia.co.uk and he will confirm your space. Joining instructions will be sent out nearer the time.

James Baggott addresses delegates

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

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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 December 10-14 Mini kicked off a new finance promotion with some clever marketing – hiring Coopers in central London for 26p per hour.

Nottingham Auto Park found themselves in trouble – with reports suggesting they could have entered into administration.

Japanese and Korean markets are expected to hit a ‘fuel cell boom’, a report said.

Fiat gave out prices for its new Fiat 500L – the larger version of its chic city car – starting from £14,995.

Skoda showed off its new Octavia – fitting in with the company’s new look, as premiered by the Rapid hatchback.

VCars began using ContactAtOnce! live chat software, allowing customers to contact dealers directly from adverts.

Drive Assist UK – and its Nottingham Auto Group subsidiary – was confirmed as having entered into administration.

Solera holdings purchased vehicle history supplier CarweB – joining provenance check firm HPI in its portfolio.

Consumer car finance was found to be becoming more important than ever – with a reported 70 per cent of new car sales relying on the solutions.

Honda reached the top of the advert charts – as YouTube revealed that its ‘Spark’ ad for the Civic was the most popular automotive commercial for UK users.

Jaguar Land Rover began eyeing up new production facilities – not in China, but Saudi Arabia – as its premium range expands.

Vehicle manufacturing in the UK rose again in November, SMMT figures revealed – with engines remaining the country’s biggest export.

Mercedes-Benz released pictures of its face-lifted E-Class range – revealing its new, LED-headlightadorned front-end.

Vertu purchased one of troubled dealer group Nidd Vale’s assets – a Vauxhall dealer located on Leeds Road, Harrogate.

Cambria ‘performed in line with expectations’ over the last financial year, figures and a report from the company revealed.

Glass’s managing editor of the last 11 years announced his intention to leave, saying that he was excited to see what the future would hold.

The traditional tax disc could be set to be scrapped, it was announced – as a government report looks at streamlining the DVLA. Freezing weather caused a nine per cent surge in car accidents, according to statistics from Accident Exchange.

Mini added a new sporty flagship to its range – creating a 215bhp, four-wheel-drive JCW Paceman.

From top left, clockwise, Octavia, Peter Schreyer, JCW Paceman, E-Class

MADE IN BRITAIN

Story of the month Infiniti will be building cars in the UK from 2015 onwards. Is first-ever premium compact car will be built at Nissan’s Sunderland manufacturing facility in the north-east.

The announcement represents a £250m investment into the facility.

Full report, p9

December 17 - 21 The Ford Fiesta won valuation firm CAP’s used car of the year award, beating rivals such as the Volkswagen Polo to the crown.

Conversion fraud remained the most common form of fraud to blight the car finance market, the Finance and Leasing Association revealed.

Infiniti’s model range will receive an entirely new badging system from 2014.

Seat UK appointed a new director – Neil Williamson, who previously headed up MercedesBenz Retail.

MG opened a dealership in Grimsby – the brand’s eighth new franchise to open in 2012.

December 24 - 28 Grand Prix legend Nigel Mansell hung up his racing overalls – opening a car dealership in Jersey (see p10) Broadbridge Heath Motor Company – a West Sussex-based dealer – was placed into administration.

DECEMBER 31 - JANUARY 4 Designer Peter Schreyer – accredited with Kia’s vibrant new range of designs – was appointed president of the company.

Auto Trader partnered with Yahoo Cars, allowing browsers of the site to search quickly for used cars through the advertising portal.

Autotrade-mail launched a new website. It was the first relaunch of the site since its inception in 1999.

The Toyota Land Cruiser is the best car at holding its value, data released by Glass’s Guide demonstrated.

Part exchange values rose in December – and for 2012 overall – according to data from Manheim.

Subaru cancelled its comprehensive ‘everything taken care of’ package – replacing it with a five-year, 100,000-mile warranty on much of its range. [CD] CarDealerMag.co.uk | 17

DASHBOARD. SUBARU

Maintenance package axed JAPANESE firm Subaru has canned its ‘Everything Taken Care of’ (ETCo) maintenance package, citing a lack of demand.

A release by the firm states that vehicles purchased on or after January 1, 2013, will no longer be eligible for the programme – suggesting that many prospective owners found it a less attractive option than a longer warranty period.

In its place, Subaru is offering just that – a more extensive warranty.

Now five-year/100,000 mile against the threeyear/60,000 mile one on offer before, it applies to all models bar the WRX STi.

NEW DEAL

Auto Trader’s Yahoo! tie-in AUTO Trader has announced a partnership with Yahoo Cars UK and Ireland. The firm says the new tie-in will help them reach nine out of 10 online customers – strengthening its hold on the market.

‘We are very excited to welcome into our partner portfolio, our 10th online partner,’ said group director Nathan Coe.

APPOINTMENT

Rushmore gets new job CAP has appointed Adrian Rushmore as its operations director.

Rushmore joins CAP from Glass’s, where he was managing editor for 26 years. The appointment, says CAP, is the latest to draw on ‘experienced and respected figures from the automotive sector’ – placing them squarely in key operational roles within the company.

The investments follow the acquisition of CAP by ‘one of Europe’s top flight investment specialists’, Montagu Private Equity. ��| CarDealerMag.co.uk

Autotrade-mail gives its website a major make-over bit.ly/ATMrefresh

Nissan dealer network is braced for ‘growing pains’ Following a strong 2012, the firm is preparing for continued growth

N

issan’s UK chief is all-set to tell his dealer network, ‘get ready for growing pains’.

Speaking to Car Dealer, Nissan GB’s managing director, Jim Wright, said over the next few weeks, he and his team will be telling dealers they need to get ready for growth.

‘Looking at the product we’ve got coming over the next few years, we are the bottom of the product cycle – even if it is our best-ever year,’ Wright told us. ‘There is the potential to stretch that market share closer to six per cent sometime in 2015.’

Over the next two years, dealers will be selling three new cars and two facelift cars. In 2015, the model line-up will be rejuvenated.

‘Six per cent is achievable; the network needs to prepare itself for continued growth; there will be growing pains, not shrinking pains.’

Nissan finished 2012 by beating all previous records. At the year’s end, 105,835 cars were sold, giving Nissan a market share of 5.2 per cent. Total car sales were up 9.9 per cent from 2011’s performance of 96,269 units. Add in LCVs, and the figure is 115,970 vehicles – up 8.3 per cent from 107,123 in 2011.

‘It’s a very, very strong performance in what is an ever increasingly competitive market,’ said Wright. ‘The continuing growth in market share is a testament to the work we have done over the past two to three years in terms of network

Jim Wright

management; the replacement of some under-performing dealers; new open points and the work NMGB (Nissan Motor GB) do in making sure we are treating customers well, maximising loyalty and capitalising on the good product we have got.’

One key objective is to ramp up sales of Nissan’s all-electric Leaf. Despite sales being up 10 per cent in 2012, more can be done, believes Wright.

‘Leaf production commences in the spring at our Sunderland plant, and this will give us more flexibility in terms of pricing,’ he said. ‘At the moment Leaf is a reasonably expensive car and that is one of the issues. Every dealer is now ‘‘Leaf sales compliant’’ – this happened at the end of 2012. We started with 32 dealers and now we are up to around

180, and our view is every salesperson should be equipped to sell Leafs.’

Wright believes building the Leaf in the UK only matters to the customer indirectly, but is more about ‘Nissan taking a car to mass-market in a more conventional way.’

Wright admits selling the Leaf has been difficult because of Nissan ‘overestimating the advantage of being first to market’ and ‘underestimating the disadvantage of being first to market’.

Another bonus of building the car in the UK, is that Nissan GB will finally make money on the car. ‘Moving to Sunderland will free up investment, so we will invest more in advertising. We will ramp up Leaf TV adverting in 2013.’

High-flying Vertu welcomes two new dealers VERTU Motors have acquired two outlets in Carlisle – Dobies Vauxhall and Seat.

Joining the firm’s other 92 sales and after-sales facilities across the UK, the PLC has purchased the entire share capital of the Vauxhall dealer and the business and ‘some assets’ of the Seat premises.

Situated in ‘prime location’ just off Junction 44 of the M6, north of Carlisle, Vertu say the business will help extend its presence in the north – adding to its Vauxhall dealers in Sunderland, Durham, Newcastle and Hexham.

The buy-out marks the 13th Vauxhall dealer in Vertu’s portfolio, and the fourth Seat dealer.

Management accounts for the businesses showed a turnover of £10.7m, and an operating loss of £0.1m. Robert Forrester, CEO of Vertu Motors, said: ‘This acquisition

extends the group’s operations across the north of England and into Cumbria for the first time.

‘These two outlets complement the group’s existing businesses in the north of England, and in particular our Vauxhall operations in Newcastle, Hexham and Durham which are adjacent to the acquired territory. The additional Seat outlet extends further the group’s relationship with the Volkswagen Group.’ Forrester added: ‘The group is now the seventh-largest automotive retailer measured by revenue.’

CarDealerMag.co.uk | 19

FINANCE. report

Consumers turn to deals to fund new car purchases CONSUMER car finance is more important than ever, according to a new report.

Figures from the FLA reveal that 70 per cent of all new car sales are now driven through consumer car finance – keeping the industry alive.

The number of cars sold on consumer finance is up 40 per cent over last year – and the number of used cars sold on finance increased by 15 per cent.

Now 70.2 per cent of all consumers buy cars through finance, compared to 64.2 per cent in January last year.

Business use of motor finance increased, too, with the number of new cars sold up by 18 per cent – and used cars up 204 per cent.

‘2012 has been a spectacular year for car finance,’ commented Paul Harrison, head of motor finance at the FLA. ‘Over 70 per cent of consumers now turn to their local dealership and motor finance providers to fund their new car purchase.

‘We expect this figure to approach the 75 per cent mark in 2013. The used car market is also performing well as the range of attractive finance packages is extended to those buyers.’

FLA: Watch out for the most common type of fraud Car finance theft is dropping overall but in one area it continues to rise

B

uyers beware – that’s the latest piece of advice from the Finance and Leasing Association (FLA), as one particular type of finance fraud continues to rise.

Research carried out by the organisation has revealed that conversion fraud, where a vehicle is sold as though it has no finance outstanding, remains the most common type of fraud to blight the car finance industry – and it is growing.

The FLA says tough economic conditions are responsible for helping to keep the number of fraud instances high. As owners are desperate to free up available cash, the FLA suggests they may be tempted by a quick sale of their car.

It’s those who fail to fulfil their responsibilities and repay the loan in full that causes issues, though – as the FLA says, ‘until the loan is paid off in full, the car is not theirs to sell’.

But, as a whole, fraud is down – 747 cases were recorded last year, some 11 per cent less than the year

before – and represents a ‘very small’ proportion of the total number of finance agreements taken out.

Paul Harrison, head of motor finance at the FLA commented: ‘A finance company remains the owner of a car until the final repayment is made.

‘Any breach of contract – such as selling the car to someone else – could

result in a case being referred to the national AVCIS Vehicle Fraud Unit for investigation.

The good news is that the reduction in fraud cases during the past 12 months means that fraud only affects a very small proportion of total motor finance agreements.

‘This demonstrates the work is paying dividends,’ he said.

Suzuki VAT-free offer makes Alto best value on-the-road city car Dacia and its £5,995 Sandero might be on the way to the UK soon but that doesn’t mean the firm has stolen the ‘cheapest car’ crown quite yet.

Continuing its VAT-free offer, Suzuki is offering its Alto city car for £5,999 on the road – making it the best value city car in the UK. Customers can also combine the deal with a low-rate finance offer –

allowing them to get their hands on an Alto SZ for just £99 per month over a 50-month period.

Buyers pay a deposit of £499, an initial monthly payment of £125, and pay a total of £7,361 for the car.

Meanwhile, the VAT-free offer also applies to many other cars in the range. A Splash 1.0 SZ2 can be had for £7,995, for example, while the Swift

three-door SZ2 is available for £8,995.

Grand Vitara buyers instead benefit from a tempting zero per cent finance offer – with either the three or fivedoor models available, interest-free over a 36-month period with a 50 per cent deposit.

The promotions are available until March 31 and only from authorised Suzuki dealers.

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

..in association with

DEALFINDER. Latest finance deals on CROSSOVERS VAUXHALL MOKKA THE Mokka is a new addition to Vauxhall’s line-up, and a very striking one at that. The firm has just started marketing the chunky mini-SUV and, although it’s not long been on sale, Vauxhall already seems keen to do a few deals on the fresh-faced 4x4.

Buyers can choose any Mokka, bar the Tech Line trim level, and be offered a competitive zero per cent finance deal.

Available with an adjustable deposit through Vauxhall’s Flexible Finance system, customers choose how much they’d like to put down on the car, paying the remaining amount monthly. Terms can also be adjusted - any period from

24 to 60 months. A representative offer on the Mokka 1.6 SE comes out at £249 per month for 60 months, preceded by a deposit of £5,555. Alternatively, a 1.7 CDTi Exclusiv is available from £245 per month over the same period, with a deposit of £4,745. It’s only available until April 2.

MITSUBISHI ASX THE ASX has proved a very popular car for Mitsubishi. Not only has it opened it up to the small SUV segment but also to family hatch buyers looking for a high-riding rival to the likes of the Ford Focus.

Thanks to some low-rate finance offers, buyers can enjoy it, too – for a lower price

than you might think. The ASX Attivo special edition, fitted with a 115bhp 1.6-litre petrol engine, can be had for 6.4 per cent APR on a PCP package over a 43month period.

A representative offer puts the Attivo at £149 per month with a £5,940 deposit, making the total payable £17,343 – after an optional final payment of £5,145.

Alternatively, buyers can place a smaller deposit and pay more monthly – putting down £4,074 would make monthly payments £199, and the total payable £17,577. Offers are on until March 31.

NISSAN QASHQAI NISSAN’S Qashqai is the oldest of the three cars here, but by no means worse for it.

Buyers seem to like it, too, with the model making it into the top 10 models sold in the UK last year, beating even the BMW 3 Series in the charts.

The firm isn’t resting on its laurels, though: incentivising the popular crossover with zero per cent finance until March 31, with a minimum deposit of 30 per cent.

A representative offer puts the Qashqai Acenta 1.6 manual at £179 per month for 36 months – after a customer deposit of

£5,605. Alternatively, a Qashqai Tekna 1.5 DCI is available from £219 per month over the same period, after a customer deposit of £7,165.

Customers also receive a complimentary three years’ pan-European roadside assistance package.

Meldrum

time is money

A non-prime market...

I

’m sure you’ve already planned how you’ll break sales records this year and achieve significantly higher profits than ever before. However, if you’re still thinking about it: will you have your plans in place a month from now, or are you just going to wing it again this year, hoping for the best (because, after all, we are still in economic downturn)?

Not surprisingly, achieving sales and profit objectives in a depressed economy is never easy but will disregarding the need to plan ahead make matters better or worse for your business?

It’s obvious that none of us has direct control over the economy but we can control what steps we take to achieve business success, despite the doom and gloom that’s on the news every night.

As a campaigner for increasing F&I profits through diversification into the non-prime finance market, I believe that there are many car dealers like you who will benefit from becoming a partner of First Response.

Some of you may have previously felt the fear of failure when you tried to service this market with other finance providers who were less supportive and possibly had no real understanding of the needs of the non-prime customer.

First Response will help you redefine how you feel about the huge market that exists beyond the reach of many prime lenders.

We will support you to prevent any recurrence of the problems that contributed to your previous disappointment.

I’m sure you’ll value our experience and expertise so much that in a few months you’ll be wondering why the non-prime buyer had been ignored for so long by so many. So, on behalf of First Response, I’d like to invite you to become one of our partners. Send me an email using the contact details below.

‘You’ll wonder why this buyer had been ignored.’

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 Tel: 0844 8730819 Web: www.frfl.co.ukWeb: www.frfl.co.uk CarDealerMag.co.uk | 21

dashboard.

Around the world Dealer news from somewhere other than here

Seat UK appoints new director bit.ly/Seatdirector

GERMANY

Car sales dropped 2.9 per cent in 2012, according to figures from the VDIK association of car importers. The annual total for 2012 was ‘significantly lower’ than the figure predicted a year ago – following the economic problems across most of Europe.

In contrast to the UK, the number of private buyers has fallen.

USA

Despite warnings of the ‘fiscal cliff’, car buyers carried on all the same, with December’s sales up 19 per cent against November, and nine per cent yearon-year, according to Autodata Corp. All three domestic carmakers (Ford, Chrysler and GM) posted small gains, while Volkswagen’s sales shot up by 35 per cent in 2012 ­– reportedly the maker’s best December since 1970.

UAE

Rolls Royce customers have been treated to a very special edition of the Ghost luxury saloon. The Firnas Motif Collection honours the legendary Arab inventor Abbas Ibn Firnas, who was the first man to make scientific attempts at flying – a figure well known in the Middle East. Finished in a hand-painted two-tone colour scheme, just five will be built – all for the UAE.

SOUTH KOREA

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Bound by a 5-year guarantee, Ceramic Coat protects against damage from dirt, grime and U.V. light.

No other product on the market today is as effective, and one application is all that is required.

sales@autoprotect.net

www.paintprotectionproducts.com

The Williams name and logo are trademarks of Williams Grand Prix Engineering Limited and are used under licence to Williams images © 2013 Williams Grand Prix Engineering Limited. All rights reserved. Ultimotive Limited is the worldwide licensee of Williams car care products.

��| CarDealerMag.co.uk

Chinese car dealers are considering dropping Japanese brands from their showrooms altogether, a report by the Japan Daily Press has suggested. Violent protests and a change in ‘consumer preferences’ are causing a dramatic drop in sales for brands like Toyota and Honda within China – thanks to a territorial spat between the two countries over a group of uninhabited islands.

Japanese and Korean markets are building to a dramatic rise in alternative fuel vehicles. Fuel Cell Electric Vehicles, in particular, are expected to rise in number dramatically, with Japanese and South Korean manufacturers optimistic about commercialising the vehicles by as early as 2015. Analysis from Frost and Sullivan shows a big expected increase for FCEVs – up to as much as 58,000 units in 2020, against just 600 last year.

CERAMIC COAT PROTECTION THE WINNING FORMULA

For more information on Ceramic Coat and to arrange a demonstration, please contact Alex Youngs: 0871 384 3507.

CHINA

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helpdesk.

Join Car Dealer Club by visiting CarDealerClub.com Members get free legal advice worth £199 for a £34.99 annual subscription

Ask Lawgistics

Q& A

Car Dealer Club lawyers Lawgistics answer dealers’ legal questions. Join for £39.99 a year to get advice like this when you need it

Q

I sold a car to a customer and the turbo failed after seven months and 3,000 miles. I was very surprised because the person who sold me the car had assured me he had had a new turbo fitted just before the sale.

When I questioned him about it he showed me the receipt. Sure enough, it was a new turbo.

I didn’t recognise the brand and it wasn’t a manufacturer’s part. As it is over the six-month limit after sale have I got any liability?

RA, Yorkshire The short answer is probably yes, unless there is any evidence to say the customer who now owns it has abused it in some way, such as letting it run out of oil. We get queries from time to time about liability when cars have been fitted with after-market (non-manufacturer) products and this can involve a temporary fix product such as radiator sealant. Unfortunately for motor dealers, sale of goods law does not vary with the state of knowledge of the seller. Whether you knew a substandard part had been fitted or not, does not make any difference to the duty to sell a car of satisfactory quality or fitness for purpose.

It can be a headache for dealers since you will not know what has or hasn’t been carried out by Mr Handy Andy before he drops his problem on to you. The service history should help.

If the car has been regularly serviced at a respectable garage then it is less likely to have been bodged than if the person, say, carried out their own oil and filter change whenever they might

A

have had the inclination. Under the six months cut-off rule, there is a legal assumption that if something goes wrong within six months from the date of sale then the car was not of satisfactory quality when sold.

So the dealer has to get some evidence to suggest the vehicle was satisfactory when sold. After six months, the normal rule of law kicks in and the person who is suing you (the customer) has to prove that the car was not of satisfactory quality.

However, in this case, on the face of it, the turbo is probably substandard if it has only lasted this relatively short time and low mileage. If that is the case, then you will be liable for repairs.

There seems little point (unless there is evidence of abuse) in having an expert report carried out.

As an analogy, if you are peeling an onion and it looks rotten after the first layer, why carry on?

Finally, and there is no good news with this story, you do not have any redress against the person who sold you the car or the supplier of the turbo. As the vendor is not in business there is no liability for lack of satisfactory quality.

In addition, they have not misrepresented the car or its turbo. The contract between the turbo supplier and the customer who bought the turbo has no bearing on the contract between you and that customer.

The only glimmer of hope would be if the supplier of the turbo or the manufacturer had provided a guarantee which didn’t expire when the car was sold on.

Short-term working

ADVICE

Q

We are experiencing a downturn in trade and don’t have enough work for our staff. Is there a way to cut the wage bill without losing valued members of staff or having to spend more money on redundancies?

TN, Edinburgh

A

It is common practice for employment contracts to hold a clause to allow employers to implement periods of shortterms working or lay-offs, such as; “The employer reserves the right to temporarily lay you off without pay or reduce your normal hours of work and reduce your pay proportionately on giving as much notice as it can reasonably give if, in the employer’s opinion, it becomes necessary.”

With this provision in place you can implement a lay-off immediately. The employer must pay employees the statutory minimum guarantee of five days’ pay for every three months of lay-off (see the BIS website for details). Employers must write to the employee with a definite end date.

Short-term working is more commonly used here, as it allows staff to be retained while reducing the wage bill.

Each member of staff may have their hours reduced by no more than 50 per cent and for no longer than four consecutive weeks. They should not be put on shortterm working for more than six weeks in a 13-week period. Employees must have written confirmation of the period they will be on these reduced hours, with a definite return date.

For more information, see ACAS’s website.

I suspect a member of staff is still drunk from last night Q A member of staff turned up for work, whom I suspect is still drunk from the previous night. As a salesperson they have to drive vehicles on our premises and on test drives. I fear they are over the legal limit to drive. What are my options?

DB, Hampshire In an industry where most staff are expected to drive vehicles or operate machinery, they must be fit for the working day. If provision is in place in

A

Let Lawgistics help you... ��| CarDealerMag.co.uk

the employee’s contract of employment or staff handbook for random testing, the employer may undertake a drugs and alcohol test. Such a policy infers an employee’s consent. However, the employer must hold a reasonable belief that the employee is intoxicated. If the employee refuses when they have previously consented to the policy, disciplinary action may be taken. If a contract of employment or handbook does not hold the relevant

Q& A

provision, an employer can ask an employee to consent to a test. However, the employee has a right to refuse which cannot automatically be held against them or treated as an admission of guilt.

Employers with no drugs and alcohol policy should consider implementing one as soon as possible. Employees tested and found to be intoxicated on site should be sent home as they will be unsafe to work. This should be suspension, pending investigation for a disciplinary hearing.

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 £39.99 per year. Sign up at CarDealerClub.com

CarDealerMag.co.uk | 25

forecourt.

Land Rover Freelander

INTERIOR

Cabin gets a refresh, too. 2013 Freelanders get a new centre console, buttons for the terrain response among other changes.

Land Rover has given its perennial premium compact SUV a nip and tuck for 2013.

James Baggott reports What is it?

Land Rover’s perennial compact SUV has been given a little wipe over with the flannel to freshen it up. The changes aren’t huge inside or out but they’re enough to give it a new lease of life. Some smart new headlights, new rear taillights that look like dumpy red snowmen, and a more striking grille are the talking points outside. Inside it’s had more attention with an Evoque-ess makeover.

What’s under the bonnet?

There are two diesel units – both 2.2-litres but with different power outputs: 147bhp and 187bhp, they both offer four-wheel drive. There’s also a 148bhp version in two-wheel drive form, but quite why you’d opt for that we have no idea apart from its lower CO2 emissions. We tried a brilliant 2.0-litre petrol engine, too, on our road test in Canada but sadly this won’t be coming to the UK. In fact, it was actually our pick of the bunch.

What’s the spec like?

It’s inside where the manufacturer has really gone to work. The centre console is new and the old Terrain Response dial has been swapped for buttons from the Evoque. A new instrument cluster has been installed which has a five-inch display that offers the important details. It’s now got keyless go, a brilliant hitch assist that helps drivers line up their tow bar and clever voice activation. There are three new colours to choose from paintwise and the stereo system provided by Meridian is nothing short of extravagant.

terrain we tackled on the launch was positively frightening and it sailed through it.

What’s it like to drive?

What do the press think?

If you were hoping for a whole new car, you’ll be sorely disappointed. This revision is a nip and tuck at best, bringing its styling into line with the other, newer models in the range.

However, there’s no denying that the Freelander is extremely capable off-road – some of the ��| CarDealerMag.co.uk

ENGINES

Two 2.2-litre engines are on offer with 4WD, and there’s a loweroutput 2WD. Sadly 2.0-petrol isn’t coming to the UK – it was our pick.

Autocar said: ‘It’s still competent’ but warned customers should not get ‘carried away with the spec’ as ‘the top-spec HSE Lux trim is hugely expensive at £39,805. You can get the most expensive five-door Evoque for that and have £1,500 change left over.’

What do we think?

The revisions inside bring the Freelander up to date but we’d rather hoped they’d have done more with the exterior. The new lights are striking but nowhere near as bold as its sister cars, which is a shame. However, its capability off-road can’t be doubted and despite its age we still think it’s a rugged alternative to some often rather boring German offerings. Worth a look for the pony-pulling set.

in association with

Jaguar XJ AWD

To meet global demand for its models, Jaguar has created an AWD XJ. But it won’t be coming to the UK. Looks

Not much has changed – facelift is made up of new headlamps, new rear lights and a restyled grille.

Looks a bit more like Evoque, now.

What is it?

An all-wheel-drive version of Jaguar’s luxury limo, the XJ. Using a partmechanical, part-electric set-up Jaguar’s engineers have created a clever four-wheel-drive system for markets where cold weather is the norm – like the car’s launch location, Canada. The system allows 100 per cent of the power to go to the front or rear wheels, depending on where the grip is needed. The good news is no driving characteristics are lost during normal conditions, as just five per cent of the power is sent to the front wheels.

What’s under the bonnet?

The highlight is the new 3.0-litre supercharged petrol V6. Producing 335bhp and 450Nm of torque it hits 60mph in 6.1 seconds, achieves a top speed of 155mph and returns 28.8mpg. It’s a corker of a unit and combined with the eight-speed automatic it’s incredibly smooth.

What’s the spec like?

As you’d expect, it’s plentiful. Leather upholstery, a frankly sensational Meridian sound system, Bluetooth, cruise control – in fact pretty much everything you’d want and more comes as standard.

What’s it like to drive?

the knowledge Model: Land Rover Freelander SD4 HSE Lux Price: £39,805 Engine: 2.2-litre, diesel Power: 187bhp, 420Nm Max speed: 118mph 0-60mph: 8.7s MPG (comb’d): 40.4 Emissions: 185g/km Residual values (three years): 38 per cent

target buyers: The country set who need real off-road skills and a prestige badge to match.

the rivals: Audi Q5, Volkswagen Tiguan, Volvo XC60

Key Selling Points: 1. It’s a Land Rover, so it’s utterly brilliant off-road.

2. Sharper and more stylish interior is luxurious.

3. Smarter looks bring the Freelander bang up to date.

It’s brilliant. Jaguar took us to Canada to test the system in the snow and I’ve never felt as safe on the slippery stuff as I did in these AWD XJs. However, it’s worth noting these AWD Jaguars aren’t due to come to the UK. Sales of four-wheel-drive saloons are small, says the manufacturer, and it doesn’t warrant the development costs, but a spokesman did tell Car Dealer that it hasn’t been ruled out completely.

What do the press think?

Auto Express expressed sadness at the car not appearing here, saying: ‘According to Jaguar, the market in the UK is too small for big the knowledge four-wheel-drive luxury cars. Fair enough, but we’re missing out on Model: Jaguar XJ AWD Price: £68,000 (est) another talented new Jag.’ Engine: 3.0-litre, petrol

supercharged What do we think?

Power:

335bhp, 450Nm It’s a shame these AWD models Max speed: 155mph aren’t coming to the UK as they 0-60mph: 6.1s are very accomplished and with MPG (comb’d): 28.8 the weather we’ve been having Emissions: 229g/km recently, they’d make wise buys.

Residual values However, it’s nice to see a success (three years): 27 per cent story for British car manufacturing elsewhere around the globe Searches supplied by and there’s a slim chance one Monthly AutoTrader.co.uk day we’ll see the technology on searches: 313,580 British models. We’ve got our fingers crossed.

Deal Clincher:

It’s one of the most capable off-road SUVs available.

Searches supplied by Monthly AutoTrader.co.uk searches: 704,160 CarDealerMag.co.uk | 27

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DIGITAL MARKETING EXPERTISE

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forecourt.

in association with

Mercedes SL 350

the knowledge Model: Mercedes-Benz SL 350 Price: £85,645 (as tested) Engine: 3.5-litre, V6 petrol Power: 302bhp, 370Nm Max speed: 155mph 0-60mph: 5.7s MPG (comb’d): 37.7 Emissions: 176g/km Residual values (three years): 45 per cent

The new version of Mercedes-Benz’s GT icon, the SL, is as posh and fuel efficient as ever. James Batchelor has driven it What is it?

It’s the entry-level version of the new sixth-generation SL, powered by a 3.5-litre V6 rather than the more expensive and potent V8 and V12 units further up the range. Having said that, it still costs £72,495 and offers the thrills and luxuries SL buyers have come to expect from this classic GT car.

What’s under the bonnet?

An entirely new 3.5-litre V6. Unlike the raw power and brawn of the other V8 and V12 engines, the V6 offers buckets of creamy smoothness and more than ample shove. Thanks to 302bhp, the 3,498cc V6 gets the 1,685kg SL to 60mph in 5.7 seconds.

And like the SL 500 and SL 63 AMG V8s and V12-engined SL 65 AMG, the SL 350 is limited to 155mph.

Combined MPG is 37.7; CO2 emissions are an impressive 176g/km.

What’s the spec like?

More than satisfactory – but that’s

what you expect from a car costing this much. Standard spec includes 18-inch alloys, climate control, cruise control, leather and more. Our test car had a whopping £13k-worth of options, with highlights being the comfort seats at £745; £575 Airscarf neck-level heating and the £1,150 Harman Kardon surround-sound system. We would probably avoid the £2,610 Magic Sky Control panoramic vario-roof – it’s a nice idea in St Tropez but not in Preston.

aural pleasure the singing V6 gives.

What do the press think of it?

Auto Express said: ‘At this end of the market, many buyers will be tempted to spend the extra £11,000 on the Mercedes SL500. Although it doesn’t have the effortless punch of the turbocharged V8 model, this car is definitely the pick of the new SL range.’ Autocar said: ‘This baby SL is also the best [in the range].’

What’s it like to drive?

What do we think of it?

The SL is a grand tourer in the best tradition – it’s good for wafting, posing, blasting through countries, but less good at the race track. The steering is a little light and the brake pedal lacks a bit in feel, but the throttle response is spot-on and the seven-speed ‘box is quick to change gear in all modes (eco, manual, sport).

One major surprise was the really rather excellent ride quality – even on our car’s 19-inch wheels – and the

Certain people may look down their nose at the entry-level V6, deeming it to be under-powered and a little limp-wristed. But it certainly isn’t – in fact, the V6 is probably the pick of the range for very good reason, offering decent power and acceptable running costs. The new SL once again builds upon its reputation as the default choice in this sector for those customers looking for style, power and quality.

target buyers: Existing owners; golfers; retired private buyers with plenty of cash.

the rivals: BMW 640i, Jaguar XK, Maserati GranCabrio

Key Selling Points: 1. Evolutionary styling boarders on being pretty.

2. Unlike major rivals, SL is both a coupe and a convertible grand tourer.

3. It’s light – made from aluminium to cut weight.

Deal Clincher:

Potent power but doesn’t cost the earth to run.

Searches supplied by Monthly AutoTrader.co.uk searches: 254,591

INSIDE

Standard specification is pretty good, but most customers will turn to the options list to personalise their SL 350.

ENGINE

SL 350s have an entirely new 3.5-litre V6.

It’s no slouch – there’s 302bhp on offer and the car can top 155mph.

STYLING

The SL is a good-looking car. In the metal, it’s long and sleek. It’s pretty wide too and rather imposing.

CarDealerMag.co.uk | 29

BIG MIKE BIG MIKE.

Mike’s

1.

favourite motors F

or the second time in my life, I’m celebrating my 50th. No, that doesn’t mean I’m about to turn 100, though sometimes when I glance in the mirror the wizened old git that grumbles back at me looks like he’s already got there.

But it does mean that I’m celebrating my 50th column in Car Dealer magazine – and you have to admit, it’s quite impressive that already 50 issues of this fine organ have passed beneath your paws. Quite how many jacking points have been stuffed with wadded-up copies of the mag and body filler over the past four years I don’t know, but I suspect I’ve used a fair few myself.

So, in order to celebrate this momentous occasion, editor Batchelor has allowed me to compile a celebration of what I believe are the best 50 cars of all time – and there’s not a Ferrari or Lamborghini among them. No, because these 50 are the favourites of a knackered old Brummie car dealer, who owes his livelihood (and maybe even one day his retirement), to each and every one of them. In no particular order they are…. illustrations: designbymook.wordpress.com

Ford Cortina Mk 5 Ah, ‘Tina, bless her. No list of a car dealer’s favourites would be complete without the original Dagenham Dustbin, which may have been a distinctly average car, but Ford sold them to fleets in their thousands, and fleets sold them to guys like me in equal quantity. Stolidly reliable, the old Cortina was stupidly cheap to run and stupidly easy to bodge – I looked through my records the other day and realised I sold 204 of the venerable Mk 5s (I had a great fleet customer who used to send them to me ready clocked) over the years, and only once did I ever have one come back because the customer wasn’t happy. Easy money, if only they still made the bloody things.

2.

Ford Sierra It may have been revolutionary in the styling stakes, but the original jelly mould was more of the same from Ford. Rear-wheel-drive, noisy, indestructible engines with cam rattle that outlasted the rear wheel arches and enough prevalence in suburbia to make it just as easy to sell as the ‘Tina, provided you avoided (as I occasionally didn’t) the awful Peugeot-engined diesel. I’ve driven more refined farm machinery.

3.

Vauxhall Cavalier Mk 2 The Mk2 Cav’s styling was as dismally dull as the Sierra’s was revolutionary but that didn’t stop them selling in their millions. Cavaliers of every generation dissolved around themselves, which was good news for shareholders in Isopon filler, but I can’t recall one ever letting one of my customers down. Old tech mechanicals but surprisingly fun to drive.

4.

Lada Riva Obsolete at launch, Russia’s take on the ’60s Fiat 124 was the most unsaleable piece of crud you could ever have imagined, or would have been were it not for a weird and stoic following. Most of whom were geography teachers.

There was no compelling reason to buy a Riva – it was absolute rubbish – but never in my life have I failed to sell one within a week. The last one I had was just over a year ago, and despite its inherent awfulness, I got four figures for it on Ebay.

Thank you, comrades.

5.

Fiat Panda Not the blobby thing from a few years back but the original box on wheels. Fiat didn’t design the Panda – they left that to the creators of Postman Pat. For much of the ’80s, I was a Fiat main dealer, and the Panda was so cheap, and so doggedly reliable that I could sell them with my eyes closed. And don’t mock me for this – they were awesome fun to drive.

6.

Fiat Uno Panda goes sophisticated – but with the same eager revving engines and wonderfully basic innards as Fiat’s baby. The car that finally buried Fiat’s reputation for spontaneous corrosion, the Uno was far better than it ever got credit for, and if I could get my hands on one today I’d preserve it for future generations to marvel at how advanced it was for its age. And no, I’m not even trying to be funny.

7.

Fiat Punto The last vestige of my main dealer days, the Punto brought Fiat into the modern age, and was the first of the company’s cars I could sell on desirability. But the best thing about it was its ability to hoodwink everyone – the press said here was the car that suddenly made Fiats modern, progressive and great quality. In reality, the head gaskets pop and the floors go rusty – but even now I can always sell them to female learner drivers.

8.

Austin Maestro Despite the fact that somebody clearly had a run-in with the clay model and a cheese grater, the Maestro was the last true survivor of the British car industry. It had an uncanny ability to rust like a demon but only in the places that didn’t matter – meaning you could have a truly hideous bag of external corrosion with a floor as good as new. That made them unsaleable, and therefore a trade-in you used as your daily driver. I’ve always run such cars into the ground, usually within a few months, as my own transport. But for six years I had a Maestro diesel as my regular ride because it was beyond saleable and every time I put it in for an MoT it failed to fail, despite never being serviced or maintained.

9.

Ford Mondeo Mk 1 The mistake Ford made with the very first Mondeo was to build it properly – a big mistake.

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3

All Big Mike’s columns are on our website. Enjoy here bit.ly/bigmike Because it lacked built-in obsolescence, people didn’t get rid of them, so when it was facelifted in 1996 Ford took all the nice bits out apart from its much-lauded pen holder. Later ‘Dame Edna’ Mondies are now all but extinct, having fallen prey to hideous rust problems. But their predecessors, which use mostly the same bodyshell, are pretty much rust-resistant. I’ve never quite been able to figure that out…

10.

Nissan Bluebird I’ve always said that if you want to know the mark of a good car, you should ask either a banger racer or a taxi driver. Both will tell you that the Nissan Bluebird is by far the greatest car ever made. Were it not for the banger racers slamming them into each other in a frenzy, I suspect every single one ever made would still be on the road. Without a doubt, the best-built car ever – sorry Germany. The boys from Sunderland won the quality war.

11.

Rover 800 In its first incarnation, the Rover 800 was an absolute hound of a car. Badly built, rust-prone, unreliable and dogged by electrical glitches, it represented everything that was wrong with British Austin Leyland Rover, or whatever they were called that week. In its facelifted guise, with the exception of electric windows that worked on their terms and not yours (I suspect they were in a union), it was a marvellous car – but the damage had been done and nobody ever realised, apart from traders, nearly all of whom drove them in the early 2000s because they couldn’t be arsed trying to sell one.

12.

Rover 75 Then there was Rover’s swansong. Quite probably the best British car ever made, though it took a BMW diesel engine to make it so. Even now I love these, but the difficult thing is actually having one in stock, as there’s a bizarre and excitable following for them.

13.

Austin Mini Metro Billed as a British Car to Beat the World, it may well have been were it not for self-destructing front wings and the engine from a Morris Minor. Today, it’s difficult to forget the excitement that surrounded the Metro. But I’m a Brummie boy, and this car was once our great white hope.

In Birmingham, used ones were always a doddle to sell, as most service parts could be smuggled

30

out of Longbridge in the owner’s lunch box.

14.

Citroen BX In a world where wonderfully weird Citroens were always unsaleable (but hugely adorable to a petrolhead like me) the BX was the enigma. Yes, it had hydropneumatic suspension.

Yes, it looked like something out of Buck Rogers. But for some obscure reason, it sold by the bucketload and I never found myself wanting for a sale. It was also the first car in Britain to successfully combine an automatic gearbox and a diesel engine. Along with the weird suspension, that made it so popular with caravanners that I once had a waiting list.

15.

Citroen XM If the BX was a success, then the XM was the proof it was an anomaly. Like a giant, inflated BX on steroids, it was a huge white elephant of a car. Apart from a few university professors who thought Saabs weren’t bohemian enough, it failed to find a following. Just 16 were sold in 1998, and I owned three of them!

16.

Peugeot 309 Peugeot’s ugly duckling was built in Coventry, making it popular with all those who lamented the Hillman Avenger. And it was a great car – despite its oddball looks, it had a combination of incredible resilience to corrosion and marvellously simple engines. Never an easy sell, but I used to love these as they never, ever came back broken.

the added bonus is that the typical buyer is usually female, 20-something and utterly gorgeous, which sadly means I often give a big discount.

19.

Vauxhall Astra Mk 3 According to Vauxhall, this was ‘Every Car You’ll Ever Need’. It worked for me, flogging them secondhand. And were it not for the fact that the vast majority ended up on council estates flouting awful bodykits, I’d have stood by that statement today. Not quite dull, definitely dutiful, it was one of the better Vauxhalls.

20.

Vauxhall Astra Mk 4 I despised the Mk 4 Astra when it first came out – I thought it looked really boring. So why, then, do I find it quite smart and attractive today? I don’t have the foggiest idea, but what I do know is it was a far better car than many people gave it credit for, and the hubcap-shod 1.8LS in pensioner green could burn a Golf GTi off at the lights. No, seriously, check the figures…

21.

Yugo 45 Take one Fiat 127. Take an axe to the front end and not quite chop it off neatly. Add a gearbox you made in your loft using coat hangers and rubber bands, and glue the thing together with an Airfix bodykit. Not quite sure why, but a certain type of buyer loved the Yugo, and as cheap forecourt fodder I could never get enough of them.

17.

Peugeot 205 And now, my nomination for the greatest car of all time. Like the automotive equivalent of a cockroach, albeit one as good looking as Bridget Bardot, the 205 is the only I car I know that’s harder to kill than a Nissan Bluebird, especially in diesel form where half a million miles is considered piffling. Hot hatch, convertible, delivery van or family runaround, it was all things to all people and today, 30 years after its launch, there are many still in stalwart service. Usually, cars that survive anything you can throw at them are either ugly or horrible to drive. The 205 is neither, even today.

18.

Peugeot 106 The 205’s baby sister was just as simple, just as attractive and just as easy to sell – I’ve shifted thousands of these over the years. And

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CarDealerMag.co.uk | 31

BIG MIKE 22.

26.

BIG MIKE.

Volvo 340 Apparently, the 340 has exactly the same weight distribution as a Porsche 911, thanks to the fact that the gearbox is bolted to the rear axle. It may look as attractive as your maiden aunt in a catsuit, but anyone who drove one of these quickly learned to look beyond the chocolate brown or blue dashboard to find a really entertaining car waiting to get out. Especially in the snow!

23.

Lancia Y10 A Fiat Panda in a leotard, basically. Nobody bought them but I loved them. I think the Fila special edition was the only car named after a pair of chav’s trainers.

24.

Alfa Romeo 156 The car that brought the buyers, and the rust (albeit well hidden), back to Alfa Romeo.

It charmed a generation of motoring journalists by inviting superlatives, but the passage of time has shown it to be almost as crap as Alfas of yore.

And being a committed Alfisti, I love it all the more for that, rusty floors and all… (PS, never buy one secondhand – you’ll get badly bitten!)

25.

Alfa Romeo 164 The 164, on the other hand, was a great car. Far too good to be a true Alfa, as it never rusted and was actually quite reliable. Hardly anyone bought them, but I had two and loved them both. I still have a white one in my garden.

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.

Morris Minor Listed here only because it was the vehicle in which I learned to drive. Forget idyllic scenes of English countryside, picnics and butterflies floating past on the breeze. Anyone who has ever driven one of these godawful things will know that they have absolutely sod all in the way of brakes and are complete pigs to keep in a straight line. Hateful machines.

27.

Mini Not the bloated BMW pastiche, but the original. It may have been the Minor’s little cousin but the Mini was everything the Minor wasn’t – a real hoot to drive, easy to steer, easy to stop, massively entertaining and a great way of having fun with your trousers firmly on. Shame they rotted so badly. A deserving icon.

28.

Toyota Camry The chosen steer of third division football managers and pub landlords across the country, a used Camry was always the option if you wanted a luxury car for the price of a couple of pints. Never that difficult to sell, despite the awful residual values, and as reliable as you’d expect a Toyota to be. The Camry’s hidden secret was that it was actually quite good fun to drive (unless, like me, you planted it into the back of a stationary Ford Transit). Good old Toyota reliability meant that the airbags still worked perfectly after 17 years.

29.

Volvo 740 Third only to the Peugeot 205 and the Nissan Bluebird in my list of favourite cars, the Volvo 740 was a gnarly old beast and equally difficult to murder. My most recent one (of several) was mine until a couple of months ago, bought because it was cheaper than hiring a skip and easier to drive to the tip. I left it in the road with the tailgate unlocked so all my neighbours could use it to deposit their junk as well.

30.

Volvo 240 As unstylish as a car can possibly be, especially the earlier ones with the googly headlights and goofy front bumpers. Nothing so ugly should have been quite so cossetting, or indeed as entertaining to drive…

31.

Saab 900 Ignore the temperamental and equally collectable turbo versions, the best 900s were

31

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the normally-aspirated two-litre ones with all the speed and grace of a seabound tanker. Matched only by the Volvo 740 for their resilience to salty roads and shit weather, the 900’s nadir came in the late ’80s and early ’90s, when these were beautifully built and ran like clockwork. Only saggy ‘bedouin-tent’ headlining let them down.

Much like Volvos, great cars, rubbish glue.

32.

Nissan Almera Listed here simply because it brought to the market one of the greatest inventions in motoring history, especially to residents of the West Midlands. On a Thursday night, I always try to travel home in an Almera if I have one in stock, so I can stop off in Halesowen and make the most of its curry hook.

33.

Mazda 323 Fastback Most Japanese cars of the ’80s were pretty rubbish, but the one I have a curious affection for is the Mazda 323 Fastback. Built to compete with tedious tin like the Mk 5 Ford Escort, it came with pop-up headlights. Yes, popup headlights. Like a Ferrari Testarossa. And for absolutely no rational reason. Nice work, Mazda.

34.

Rolls-Royce Silver Shadow At some point in their life, everyone should own a Rolls-Royce. Mine was a 1976 Silver Shadow in a rather unpleasant shade of Coconut Brown, with a beige vinyl roof. I loved it, not least because I took it in part exchange against a fouryear old Nissan Primera. I have absolutely no idea why, either. After four graceful months, I made a killing on it in a provincial classic car auction, and instantly missed it – the only car I’ve ever regretted selling for a profit.

35.

BMW 5-Series E34 Back in the late ’80s, BMW made some of the finest-looking cars in the world. They were more or less universally driven by complete numpties, but that didn’t alter the fact they were lovely, especially with those criss-cross alloy wheels. Curiously, the most stolen car from my lot – I lost four over the years.

36.

BMW 3-Series E30 Once 10-a-penny, the original yuppie saloon is now quite a rare beast but back in the ’90s these were fantastic currency – if the Bank of England had invested in used BMWs instead of trying to revive broken industry, the early ’90s recession might never have happened. Lovely

34

cars, great to drive, beautifully made, many were sadly ruined by chavs.

37.

Audi 80 Up there with the 205, Bluebird and Volvo 740, the Audi 80 was another of those 1980s classics that was a million times better than the sum of its parts – and so pretty, too. Even today, they still look quite modern. Okay, so usually it was powered by an ancient VW four-pot with a leaky carburettor (the later, injected 80e was less mucky, but also less reliable), it was nevertheless one of the most progressive cars of its era, and always packed a handsome profit unless, like me, you accidentally bought one with no power steering. Why, oh why, did somebody order that?

38.

Range Rover P38 Everyone loves the classic Range Rover but the car that replaced it never enjoyed the same success on the used car market, partly down to its lack of inbuilt reliability and partly because it looked like a Metrocab taxi. What that means today, though, is that for little more than a grand you can bag a car with levels of luxury to rival the Titanic (and if you get one with air suspension, it might sink, too). I’m driving one at the moment – I gave a bag of sand for it in part ex, and it’s lovely.

39.

Toyota Corolla Mk 5 Take a mundane Japanese hatchback and restyle it with the front end of an Austin Healey Sprite, complete with ‘Frogeye’ headlamps, and the rear end of an Allegro. Declare it a job well done. Laugh, as millions of people buy it regardless. Toyota’s ugliest Corolla ever, and as a result a car I have a peculiar affection for…

40.

Toyota MR2 Mk 2 For every ounce of ugliness that the contemporary Corolla possessed, the MR2 of the same era was a beauty. Mid-engined, rear-wheeldrive and with looks compared to a contemporary Ferrari, so much so that you could buy a kit to make it look even more like one, Toyota’s ’90s darling was a cracking little car. Huge fun to drive. In the late ’90s you couldn’t give them away, though, as the insurance premiums were too high. My missus had four in a row, all plucked from my lot

difficult) it became one of the used car world’s best-kept secrets back in the day, and I could sell them for good money all day long.

after their 90-day period of grace was up.

41.

Ford Fiesta Mk 3 A pay check. On wheels. Like working on a supermarket checkout – these were terminally dull but paid the bills for almost a decade.

46.

Hyundai Pony Listed here simply because it was the cheapest car I ever bought, not because it had any redeeming features. I had just sold my Rolls-Royce Silver Shadow at the auction, it was raining stair rods, and for 15 quid including buyer’s premium it was preferable to walking to the bus stop.

42.

VW Golf Mk 2 Many a word has been written about the VW Golf, and it’s usually the crisp Giuigarostyled Mk1 or the venerable GTi that grabs all the column inches. For my part, then, I’d like to nominate the run of the mill CL and GL models from the mid to late ’80s. Great cars, hard to kill, easy to own, spacious, comfortable and smart looking. I never got to drive them much, as I usually sold them within a day or two…

47.

Hyundai Coupe The subject of the worst automotive facelift of all time, the original Hyundai Coupe was an undeniably pretty car, made all the more unbelievable by the fact that it was based on the Hyundai Lantra. Unfortunately, that meant it also had the same dreadful gearbox and stodgy handling, but that didn’t stop it from being amazingly easy to sell.

43.

VW Golf Mk 4 Automatic My favourite was the automatic, for one simple reason. Because the transmission was supposedly ‘sealed for life’, after about 100,000 miles a fault light would come on and the transmission go into limp-home mode. At this point, buyers across the South-East, to where even today I regularly take a train ride to pick one up, would take their Golf to their local German car specialist, who would declare the gearbox dead. Buy them spares or repair off that well-known auction website, change the (guaranteed to be filthy) transmission fluid, clear the fault code from the ECU and you, my friend, are in business.

48.

Jaguar XJ40 Every car trader in Britain has owned one of these. Its fine combination of twee English heritage, sumptuous leather seats, wood-adorned dashboard and serene, calming ambience outweighs all of the horror stories that make it practically unsaleable.

49.

Jaguar XJ X300 Every car trader in Britain has owned one of these, too. Its fine combination of twee English heritage, sumptuous leather seats, woodadorned dashboard and serene, calming ambience outweighs all of the horror stories that make it practically unsaleable. But in this case, none of them is true – a truly fine motor car, unfairly overlooked by the masses, and a treat of a bargain for the educated few.

44.

Renault 5 I love small French cars, and while it was never as outwardly resilient as the Peugeot 205 it competed against, the Renault 5 was nevertheless a great little car. Fun to drive in the way that only a tinny, small French car can be (especially if you’re angry), the 5’s chic looks always transcended the British class system, meaning I got to meet some very pretty and upmarket girls in the ’80s and ’90s….

50.

Lancia Beta Last, but by no means least. I was there when the Beta brought down Lancia. I was a Fiat and Lancia dealer at the time. And I can honestly say that everything they said about its inherent corrosion problems and generally shoddy build quality was 100 per cent true. An awful car. But bizarrely, a great one to drive. [CD]

45.

Renault 21 Savannah Another fine French achievement, the 21 Savannah was one of the few cars of its era that could carry seven people in comfort. Much cheaper than a Volvo 740 and infinitely better than a Rover Montego (which, let’s face it, wasn’t

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FEATURE.

Automotive influencers W

ho could have predicted what was going to happen to the motor industry this time last year? We suspect that even Mystic Meg would have had her work cut out as 2012 proved just how much the car business can surprise us all once in a while.

Not only did the economy drop into and rise from a recession, but the year started out with the SMMT predicting a modest 1.84m new cars would be bought by hungry customers. Mid-year the organisation decided to up the estimation to 1.95m saying customers were hungrier than they initially

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expected. And then by the year’s end, would you believe it? Two million cars were sold by dealers.

Putting aside the rumours surrounding strong UK car sales, if there was ever a reason why predictions were a tricky art, 2012 was probably it. That’s why we’ve spoken to some of the very biggest names in the industry in an attempt to come up with a colourful and interesting picture of what we might be expecting in 2013. We’ve brought together 15 automotive influencers and asked them five set questions. Here’s what they have to say.

PICTURES: STEPHEN HALL

CarDealerMag.co.uk | 35

POPULATION OF SWEDEN: 9 MILLION

POPULATION OF AUTO TRADER:

11 MILLION

We’ve got more than 5 times as many buyers on autotrader.co.uk as our nearest competitor1. That’s why we’re trusted by over 11,000 dealers in the UK to drive leads to their businesses.

When your stock is on Auto Trader it’s in front of the widest audience of car buyers in the UK. To find out more about how we can help deliver more leads to your business visit www.dealerportal.co.uk or call 08433 089 184.

1

Omniture Unique Users June 2012

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FEATURE.

Ford Mark Ovenden: Meeting customers’ needs will create a sustained future What opportunities are you looking forward to in the car industry in 2013?

Ford’s ever-strengthening product line-up helped the company extend its UK market lead in 2012.

The new Transit Custom, new Kuga and new Fiesta will complete their launches in Q1 and then we move quickly on to Fiesta ST, new Transit Connect and the new two-tonne Transit. Ford’s industry-leading technologies such as SYNC, MyKey and the award-winning 1.0-litre EcoBoost engine will provide further opportunities for Ford to build both its brand and its market leadership.

What’s the biggest threat to the car industry in the coming 12 months?

The economic environment in Europe continues to be very difficult with overcapacity in the automotive industry creating severe profitability issues. Ford has announced a comprehensive plan to accelerate the transformation of our business in Europe, which includes improved margins through a strengthened brand and a richer product mix; and expanding our portfolio of sports utility and commercial vehicles.

Can this period of sustained new car sales growth continue at its present rate or is the industry creating a smoke screen that will be blown away?

Increasing UK sales through 2012 drew in extra production from depressed European markets and it was a credit to Ford’s outstanding product lineup and its dealer partners that Ford’s market lead was strengthened during this period of intense rivalry for sales. Current expectations are that the UK market will continue at similar levels, which means that 2013 will be similarly challenging.

How can dealers capitalise on the opportunities that lie ahead in 2013?

It’s absolutely critical that the retail experience meets increasing customer expectations. Through 2013 we will be implementing a programme of improvement starting with our online presence but importantly cascading the approach all the way to the shop floor, including cultural change as well as physical and virtual upgrades.

Mini CV Name: Mark Ovenden Job title: Managing director Age: 48 Lives: Essex Drives: Ford Mondeo the Favourite car ever: Ford Model T, ise to first example of Ford’s brand prom inues to cont h whic gy nolo democratise tech this day.

Non Ford; Original Land Rover Family: Married with two daughters am Education: Graduated from Nottingh raphy & University in 1985 with a BA in Geog

Economics. analyst Career: Joined Ford in 1985 as a sales ings post ious Prev e. offic ict in Daventry distr car brand include pricing director and small as Ford manager in Ford of Europe, as well 2006. of Britain marketing director from in as Ovenden returned to Ford of Brita years as managing director in 2011 after three of t iden pres and tor managing direc Ford Russia.

What should dealers be focusing on to ensure growth and a sustained future in 2013?

Dealers are the front line of the Ford brand and it’s absolutely imperative that they focus all their attention on customer service. Customer choice and expectations are always growing – meeting those needs creates a sustained future.

And finally, for the superstitious, are you worried the ‘13 reg’ plate change will put buyers off?

In 2013, Ford will be concentrating on the positive aspects of the number 13 by adding a further model to its current 12 model line-up. Since the introduction of our global One Ford strategy in 2006, the company has delivered more vehicles faster to increase its competitiveness. Ford has added five all-new car nameplates: S-MAX, Kuga, Grand C-MAX, B-MAX and Tourneo Custom.

CarDealerMag.co.uk | 37

FEATURE.

The AA Edmund King: Focus on good communication and less on the coffee What opportunities are you looking forward to in the car industry in 2013?

The chancellor’s autumn statement made some changes which will make investment in the industry more effective. We believe interest in electric vehicles will grow slowly as concerns over range-anxiety reduce. EVs will be marketed as the second car. Used car sales will be shaken up by new brands entering the market.

What’s the biggest threat to the car industry in the coming 12 months?

In the UK, fleets buy a large proportion of new cars and the government needs to provide them with clear indication of long-term policy on company car taxation, VED and how we pay for roads. A government-floated idea of an access charge to use the motorway network depending on vehicle C02 or weight could distort the market.

In environmental protection there is worry over the increasing costs of developing new systems to reduce toxic emissions and carbon dioxide.

Can this period of sustained new car sales growth continue at its present rate or is the industry creating a smoke screen that will be blown away?

Not sure about a smoke screen, volumes of car sales have always fluctuated but there is no doubt the economy needs to improve so more drivers feel able to commit to the expense of a new car purchase. We suspect that some people are buying now because the return on their investments is so low and there are incentives for low-emission cars – VED etc. High fuel prices may also be making some drivers wonder if they should change to more fuel-efficient models.

How can dealers capitalise on the opportunities that lie ahead in 2013?

We would like to see more customer contact, such as open evenings with salesmen and mechanics, so drivers can examine new cars without pressure and appreciate the complexity and sophistication of modern vehicles. Offer good straightforward finance deals, more attention to building good relationships and trust between dealerships and customers. Give customers want they want, for example, spare wheels. The latest AA car buyer poll shows 16 per cent will change car in next 12 months. Less than a quarter will buy new, 37 per ��| CarDealerMag.co.uk

Mini CV Name: Edmund V King Job title: President Age: 52 Lives: St Albans, Herts te Drives: Mercedes-Benz E-Class Esta Favourite car ever: Citroen DS 21 s (10), Family: wife Deirdre, Finbar (12), Luca

Eloise (8) Education: 3 A Levels, 11 O Levels, ersity, BA(Hons) Politics at Newcastle Univ ica Mon a Sant at ma Broadcasting Diplo of College, California, Visiting professor y ersit Univ e castl transport, New et Career: Wine taster at Bouchard Aine nt rtme Depa ee, train uate Fils, Beaune; grad in LA; DJ of Employment; antique jewellery thon Rent at K-RTH Radio; LA director, Mara British a Car, LA; campaigns manager at RACF; tor, direc utive exec n; Road Federatio president of AA.

cent will buy one up to three years old, with just over a quarter buying one over three years old.

What should dealers be focusing on to ensure growth and a sustained future in 2013?

Good communication with their customers and excellent customer service to establish loyalty.

Less emphasis on coffee and somewhere to plug in the laptop and more focus on provision of better information for customers. Cars have been transformed over the last few years but many drivers feel intimidated by their lack of understanding of the new technology and by the daunting, appearance of main dealer reception.

And finally, for the superstitious, are you worried the ‘13 reg’ plate change will put buyers off?

An AA Populus poll found 10 per cent of drivers said they would not buy a car with 13 on the number plate.

A third said a car with 13 on it would make it harder for them to sell. Personally I would love a new Aston Martin DB9 with 13 on it.

Manheim

Mike Pilkington: If you look after your customers, they are more likely to recommend you to others What opportunities are you looking forward to in the car industry in 2013?

We’ve seen some fantastic strides in technological developments in both the remarketing and retail markets in recent years. This pace of change continues to quicken at a phenomenal rate and we are likely to see more innovations that will help reduce the time it takes to push a car through the complete remarketing and retail journey and improve the effectiveness of the services that we offer our customers.

Mini CV Name: Mike Pilkington Job title: Chief strategy officer Age:50 Lives: Small village of Woore, north Shropshire Drives: Audi A5 lo Favourite car ever: Lamborghini Diab ren child two ied, Family: Marr ol Education: Educated at Kings Scho 3A and ls Leve O 8 with left Macclesfield, Levels the Career: Pilkington managed two of went on largest car auctions in the UK and Motor to be operations director at Central tor at GRS Auctions. He was a founding direc ting and went on to start Vehicle Remarke me MD Solutions where he was MD. He beca MD of of Manheim Retail Services and then Manheim Remarketing in the UK. He is now chief strategy officer for Manheim International

What’s the biggest threat to the car industry in the coming 12 months?

Economic uncertainty is still probably the biggest single threat. Where consumers are worried about job security, paying rising bills and keeping a roof over their head then they will continue to put off big-ticket purchases.

However Manheim’s research shows that dealers are more confident about 2013 than they were about 2012.

Can this period of sustained new car sales growth continue at its present rate or is the industry creating a smoke screen that will be blown away?

There has been a significant rise in consumer purchases as well as fleet in 2012. There is anecdotal evidence that some of this is forced as manufacturers take advantage of a slightly stronger pound and look to place surplus stock in view of the weak European market and below-expectation sales in China. While economic uncertainty continues, some areas of the UK are growing and will drive new sales growth. 2013 will continue to see a shortage of quality retail stock and therefore some preregistrations volumes could be absorbed.

But the impact on some dealers’ profitability could be considerable if not managed well.

How can dealers capitalise on the opportunities that lie ahead in 2013?

Consumers are becoming increasingly savvy thanks to the wealth of information at their fingertips and have probably made a purchase decision before setting foot inside a dealership.

Therefore dealers needs to stress test their business processes to ensure they have the basics right. Is their website well optimised and well presented? How are sales leads captured and followed up? In a recent Motors.co.uk survey 53 per cent of email enquiries were not answered or followed up. How do you monitor sales performance? Have you got the right stocking strategy in place?

What should dealers focus on to ensure growth and a sustained future in 2013?

Making sure customer loyalty is a major part of their business plan. Repeat business is vital to building profitability over time. As an example, in a recent Manheim survey 97 per cent of respondents stated that improving service absorption was a key part of business profitability.

Look after your customers well and they are more likely to return and recommend you in the future.

And finally, for the superstitious, are you worried the ‘13 reg’ plate change will put buyers off?

Inevitably some people will be superstitious and not buy but they will be few. I expect we will see some very creative marketing initiatives from manufacturers and dealers to entice customers not to mention continued new car offers.

CarDealerMag.co.uk | 39

��| CarDealerMag.co.uk

FEATURE.

Toyota Jon Williams: Dealers who are proactive will be the winners in 2013 What opportunities are you looking forward to in the car industry in 2013?

2013 is an exciting year for Toyota and Lexus.

Combined Toyota and Lexus sales grew by over 11 per cent in 2012, and we have ambitions to grow again in 2013, supported by a number of new model introductions.

Toyota is renewing its entire C-segment line-up; in December we launched the new generation Auris and Auris Hybrid both of which are built here in the UK; in January we will launch a major refresh of the Verso MPV; and in February we launch the fourth generation RAV4. Later in the year we will be launching the Auris Touring Sports (which was revealed at the 2012 Paris Motor Show) and the new ProAce medium commercial van.

Lexus will launch the new generation IS and a lower displacement hybrid powertrain in the GS. What is the biggest threat to the car industry in the coming 12 months?

Keeping a close eye on stock levels will be important as economies vary across the European markets. Production levels will need to be carefully managed. This in turn helps to protect residual values and avoids the pitfalls associated with ‘stress selling’.

Can this period of sustained new car sales growth continue at its present rate or is the industry creating a smoke screen that will be blown away?

Economies in other European markets are still uncertain and this does have a knock-on effect on the UK economy which is hard to predict. We will be looking to increase sales in 2013 helped by new model introductions and by making our industry-leading hybrid technology available on more models. Running costs become even more important to new owners in times of austerity and the cost advantage of hybrid provides a clear benefit for Toyota and Lexus.

Consumers are increasingly demanding better value and our Toyota True Value campaign for 2013 promotes well-specified cars at very affordable monthly payments backed by our five-year Toyota warranty.

How can dealers capitalise on the opportunities that lie ahead in 2013?

With sustained pressure on disposable incomes,

Mini CV Name: Jon Williams director Job title: President and managing Age: 45 Lives: Epsom, Surrey Drives: Lexus RX 450h Favourite car ever: Lexus LFA Family: married with three sons science Education: Jon holds a bachelor of and ent agem man in ee honours degr y of chemical sciences from the Universit ce Scien of tute Insti Manchester and Technology (UMIST). ial Career: Joined Toyota GB as commerc r director in 2007 from Toyota Moto of Europe where he had been director a-half marketing for Toyota for four-andyears. Before joining Toyota, Williams the worked for Ford, in both the UK and t of iden pres vice as d perio a USA, including rica. marketing for Land Rover North Ame

raising the awareness of the low running costs associated with hybrid technology will be important for Toyota and Lexus. For retail customers this can then be increased further through accessibility schemes such as our AccessToyota and Lexus Connect PCPs which promote low monthly payments. For corporate customers, the low CO2 of Toyota and Lexus hybrids results in lower taxation for the company and for the driver.

What should dealers be focusing on to ensure growth and sustained future in 2013?

In tough market conditions, the best performing dealers are always the most active. They don’t wait for customers to appear in their showrooms or after-sales facilities; they have action plans in place to generate enquiries and to schedule appointments. Providing outstanding customer service (which will be recognised through social media) and excellence in lead conversion should be top priorities for all dealers. The ability to meet and exceed customer expectations for different types of consumer enquiries on a consistent basis will define the most successful dealers in sales and aftersales.

And finally for the superstitious are you worried the 13 plate change will put off buyers?

I do not believe the ‘13’ plate will have an adverse effect on sales. For those who are superstitious they can easily transfer their current registration plate to their new car, take out a personal plate, or wait until September for the ‘63’ plate.

CarDealerMag.co.uk | 41

Know exactly what your customers want before they ask

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CarDealerMag.co.uk | 43

FEATURE.

FLA Stephen Sklaroff: The greatest threat is arguably from new regulation What opportunities are you looking forward to in the car industry in 2013?

Car finance sold in showrooms performed impressively in 2012. FLA member finance companies provided over £22bn to businesses and consumers over the most recent 12 months for which we have figures, including finance for over 70 per cent of private new car sales. There may well be room for further growth in 2013, and new car finance penetration could go even higher and dealer finance could also take a larger share of the used car market.

What’s the biggest threat to the car industry in the coming 12 months?

The largest threat is arguably from new regulation.

The government is proposing a radical overhaul of consumer credit regulation and to introduce new regulators, the Financial Conduct Authority. Given the huge economic importance of motor finance, 2013 will be an important year for us to help shape the government’s proposals and ensure that they do not damage the industry’s competitiveness.

Can this period of sustained new car sales growth continue at its present rate or is the industry creating a smoke screen that will be blown away?

Discounted deals have so far helped deliver 10 consecutive months of double-digit car finance growth. At the moment, there is little sign of this situation changing – provided the deals continue to bring customers into showrooms.

How can dealers capitalise on the opportunities that lie ahead in 2013?

Revisit the fundamentals of your business and get them right. High-quality customer service is no longer an extra; it is expected by all consumers as standard. Make sure your customers get the service they need by ensuring you understand the products that can help them make their next purchase more affordable. Better communication will also lead to better retention and more repeat business.

What should dealers be focusing on to ensure growth and a sustained future in 2013?

Lenders, manufacturers, dealers and suppliers all have a role to play. Dealers should look to ��| CarDealerMag.co.uk

Mini CV Name: Stephen Sklaroff Job title: Director general Age: 59 Lives: London Drives: n/a in Favourite car ever: UK ambassador e Washington’s armoured Rolls Royc Family: Wife, Sarah-Jane Education: Stephen graduated from completed Edinburgh University in 1980 and y College a PhD in Biochemistry at Universit .

London in 1984 Career: Sklaroff worked in several Service departments and posts in the Civil deputy until 2000, when he left to become British of n ciatio Asso the of ral director gene current Insurers. In 2007 he started in his post at the FLA.

strengthen their relationships with their finance providers to ensure that their showroom offerings meet the needs of their individual customers. In 2012, PCP accounted for 63 per cent of private new car finance sales and an increasing proportion of the used car market, and so is an important tool in a dealer’s armoury. So too is HP, which accounted for 28 per cent of new car finance sales.

And finally, for the superstitious, are you worried the ‘13 reg’ plate change will put buyers off?

No, I don’t think buyers will be put off by the new plate – particularly when they see the range of deals available to them in showrooms. There really has never been a better time to buy a car on finance. As ever, March will continue to be an important month for the industry.

Peugeot Tim Zimmerman: The importance of social media is greater than ever What opportunities are you looking forward to in the car industry in 2013?

The UK car market in 2012 was ahead of 2011 so I am hoping for continued growth in 2013. It is one of the few bright spots in Europe and the retail market is improving. There’s exciting new product coming such as the new RCZ, 208 GTi and the 2008 for Peugeot which will continue to stimulate demand.

What’s the biggest threat to the car industry in the coming 12 months?

Inconsistent fiscal policy. For example reducing CO2 levels requires investment from manufacturers and customers alike and we must not keep moving the goalposts if we want to encourage customers to buy cutting-edge ecological technology like our own Diesel HYbrid4 range.

Can this period of sustained new car sales growth continue at its present rate or is the industry creating a smoke screen that will be blown away?

I personally don’t see a smoke screen! Cars are being purchased by customers and in fact our stock levels are reducing year on year. However, the market is very competitive in fleet and retail and we have to remain agile. Peugeot’s retail mix is improving and we have drastically reduced our short-term fleet business.

How can dealers capitalise on the opportunities that lie ahead in 2013?

Peugeot dealers know, following our national business meeting last month, that they have a lot to look forward to in 2013 with further fantastic new product. The launch of 208 in 2012 has given our dealers much to be optimistic about and they need to continue to capitalise on this success throughout 2013. Customer expectations continue to rise and dealers need to be dynamic commercially and at the same time provide the highest levels of customer service What should dealers be focusing on to ensure growth and a sustained future in 2013?

The retail market is out there and we should prepare a solid marketing plan to maximise opportunities. The internet and social media are both playing increasing roles and that includes

Mini CV Name: Tim Zimmerman Job title: Managing director Age: 48 Lives: Stratford-upon-Avon, Warwickshire Drives: Peugeot 508 RXH Favourite car ever: Peugeot 504 Coupe Family? Wife Rebekah and two children Education: BA (Hons) Business Studies, DipM, DipMS Career: Joined Peugeot Talbot Motor Co as a graduate trainee in 1986 – rose to regional director for Scotland and Northern Ireland in 1995. 1998-2007 based in France in various roles, including director of marketing and commerce for Banque PSA Finance and director of fleet, business and used car sales for Peugeot France. From 2007, managing director of Peugeot Netherlands and in 2009 appointed general manager, Dong Feng Peugeot based in Beijing. Appointed MD for Peugeot UK in October 2011.

within the dealer network, too. Equally, we must improve our service to the point where customers are not just completely satisfied but also recommend us to their friends and colleagues, and Facebook friends.

And finally, for the superstitious, are you worried the ‘13 reg’ plate change will put buyers off?

I am not superstitious and so certainly not worried about that. In fact, the DVLA is saying that early indications suggest that the ‘13’ plate will prove incredibly popular with UK car buyers.

However, for the few customers who still believe in superstition in this technological age, make sure they take delivery of their car in January or February on a ‘62’ plate and maximise dealer cash flow!

CarDealerMag.co.uk | 45

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FEATURE.

Marshall

Daksh Gupta: Aftersales absorption is the key to dealers having a successful 2013 What opportunities are you looking forward to in the car industry in 2013?

There will continue to be further consolidation in our sector and I can see Marshall playing an active part in this.

in the world but with poor management driving them it just won’t happen. In my view the amplitude in profit swing is eight per cent ROS. Great people will make you four per cent and poor lose you four per cent!

What’s the biggest threat to the car industry in the coming 12 months?

The decreased levels of aftersales absorption is the biggest threat in the business right now as the one to four-year-old parc has reduced by 21 per cent since 2008. We need to drive top-line labour turnover and make sure our cost base is fit for purpose.

And finally, for the superstitious, are you worried the ‘13 reg’ plate change will put buyers off?

Even if there are fewer buyers out there during the ‘13’ plate they will come out in January and February or wait ‘til September for ‘63’ plate regardless. Nothing stops you stealing other people’s dinner or making your own luck!

Can this period of sustained new car sales growth continue at its present rate or is the industry creating a smoke screen that will be blown away?

The new car market will continue to grow in the UK, principally as the European markets are in turmoil and the pound-to-euro exchange rate have helped drive UK volumes as the current consumer offers are incredible. Buying a new car in this country has never been so cheap.

How can dealers capitalise on the opportunities that lie ahead in 2013?

I do believe the new car market will be driven to an extent by continued strong consumer offers that will be driven in turn by the manufacturers, but used cars and aftersales is critical if you want to be profitable, that’s what we will focus on for 2013. We need to get a balanced performance across all income streams.

What should dealers be focusing on to ensure growth and a sustained future in 2013?

People, people, people, but in particular management. You can have the best processes

Mini CV Name: Daksh Gu pta Job title: Chief ex ecutive Age: 42 Lives: Filgrave, Bu ckinghamshire Drives: Range Ro ver Sport Favourite car ever : Aston DBS Family: Married to MacKenzie with tw o boys, Ajay (13) and Myles (three months) Education: Studie d Computer Scien ce (Software Enginee ring) at Oxford Br ookes University Career: After unive rsity, Gupta joine d the Nissan dealer netw ork and worked his way from sales exec to GM at the Camden Retail Group. In 1998, he joined Inchcape as a GM and progressed to franchise director where he looked after VW , Audi and Mercede s-Benz.

In 2007, Gupta joi ned Accident Exch ange Group PLC as CO O. He became Rid geway Group managing director in 2008, where he is still a non-exec utive director and became CEO at Marshall Mo tor Holdings in October 2008.

CarDealerMag.co.uk | 47

FEATURE.

GMAC Erhard Paulat: Great customer service with benefits is the motto What opportunities are you looking forward to in the car industry in 2013?

We are continuing to expand our market presence and will continue to offer a broad spectrum of financing products and services for dealers and their customers in 2013. We have a number of exciting new propositions for dealers. Along with innovative consumer offers we are looking to maximise our opportunities in 2013.

What’s the biggest threat to the car industry in the coming 12 months?

An uncertain economic outlook for the European and/or global economy could impact consumer confidence. If a market shows signs of moderation, though, it is important to offer attractive options to support the vehicle sale. Auto financing is one of these options and finance companies such as GMAC play a vital role in supplying credit for vehicle purchases by consumers and businesses alike.

Can this period of sustained new car sales growth continue at its present rate or is the industry creating a smoke screen that will be blown away?

GMAC is working closely with its manufacturer colleagues to achieve sustainable and beneficial growth. In my view, this is based on offering the consumer the right products and services with sustainable conditions. Additionally, we want to be poised to help dealers finance sales across the spectrum.

How can dealers capitalise on the opportunities that lie ahead in 2013?

A professional finance and insurance programme is an important competitive advantage and continues to be a significant contributor to dealer performance.

We are here to support our dealers to make the most of opportunities in this area and add value through this business for them to achieve or even exceed their goals.

What should dealers be focusing on to ensure growth and a sustained future in 2013?

Great customer service with benefit is the motto.

Auto financing for example is not only about credit but also about availability, treating customers fairly, ��| CarDealerMag.co.uk

Mini CV

quality of service and expertise in this specialised field. Training the skills they need to run their business is crucial for dealers as well. That is why GMAC puts a heavy focus on high-quality training which received industry recognition by the IMI Awards in 2012.

And finally, for the superstitious, are you worried the ‘13 reg’ plate change will put buyers off?

We have no worries over the plate change but are planning for another good March.

Name: Erhard (Ed) Paulat Job title: Chief operating officer Age: 43 years Lives: Cardiff and Potsdam, Germany Drives: Vauxhall Insignia Favourite car ever: Vauxhall/Opel GT Family? Two beautiful daughters aged 14 and 16 Education: Earned the German equivalent of A-levels, German state approved Banker, Bachelor of Banking/Finance and, as I believe in lifelong learning, I am studying for an MBA at Henley Management College, Henley-onThames.

Career: Paulat has lived on three different continents and has done business on four.

He has worked in the banking and financial services industry all his working life. He describes it as a challenging, rewarding and personally fulfilling experience, so far.

Citroen Linda Jackson: 2013 must be the year of outstanding customer service What opportunities are you looking forward to in the car industry in 2013?

It will be another challenging year for the UK automotive sector and, I believe, another successful one for Citroen. Personally, I’ll be focused on continuing our move up-market, further developing the revitalised image of our brand, delivering an outstanding ownership experience for our customers and supporting our dealer network with initiatives that will help enhance their profitability.

What’s the biggest threat to the car industry in the coming 12 months?

For me it’s all about customer confidence, so the biggest threat would be anything that has a negative impact on that. Of course, if we experience changing market conditions, the industry will always react. Whatever the market dynamics, our job is simply to tempt buyers into our showrooms and to give them tangible reasons why they should buy the new car (or van) that’s right for them.

Can this period of sustained new car sales growth continue at its present rate or is the industry creating a smoke screen that will be blown away?

We see the market in 2013 as broadly similar to 2012. There are many factors at play, so we will be concentrating on delivering sustainable growth in terms of market share. The success of the DS line, as well as the desirability and breadth of our C-range, means we have the right products at the right time. By delivering outstanding customer service, we’ll attract more customers as the market continues to recover.

How can dealers capitalise on the opportunities that lie ahead in 2013?

By concentrating on customer satisfaction and providing an outstanding customer experience at every stage of the buying and ownership process.

The quality of our cars has never been better and UK customers have never had higher expectations or been more informed. So it’s the quality of service that we and our dealer partners provide that will maximise the number of customers returning to the Citroen network.

Mini CV Name: Linda Jackson Job title: Managing director Lives: Near Rugby, Warwickshire Drives: Citroen DS5 Favourite car ever: Citroen DS Family: Married .

Education: Warwick University, MBA career ve moti auto her n bega a Lind Career: ce roles. finan us vario at MG Rover working in pean Euro r’s Rove MG as inted appo She was g finance director in 2004 before joinin . Linda Citroen UK as finance director in 2005 en Citro of tor was appointed finance direc UK’s en Citro me beca and 2009 in France managing director in 2010.

What should dealers be focusing on to ensure growth and a sustained future in 2013?

Again, dealers need to focus on the customer experience to ensure their own profitability. That means investing in all customer touch-points across the business. A customer that’s had a great experience is the best possible advocate. In 2013, the Citroen UK network will continue investing in customer-focused staff and training. The rewards will surely follow in the form of an even more profitable future.

And finally, for the superstitious, are you worried the ‘13 reg’ plate change will put buyers off?

What a strange question. I’m looking forward to driving my new ‘13 plate’ DS5. No, I don’t believe for a moment that it will put people off buying a brand new car in March.

CarDealerMag.co.uk | 49

FEATURE.

Google Alex Rose: Dealers should be focusing on aftersales presence online What opportunities are you looking forward to in the car industry in 2013?

Continuing to help dealers align their marketing with today’s – digitally-reliant – consumer. Despite compelling findings for new, used and aftersales customers (18.2 different websites used before making a new car purchase, top seven media sources used by today’s used car buyer are all digital; owners 16x more likely to turn to the net than offline sources to research servicing) how many dealers can truly say that their marketing efforts and expenditure reflect this reality?

What’s the biggest threat to the car industry in the coming 12 months?

My answer will come as no surprise to those who know me: continuing to invest the slimmest of margins upon which dealers operate into marketing channels that are unable to deliver measurable profit back to the business – in the form of phone calls, web enquiries and, ultimately, sales – simply through habit and convenience!

‘Flying blind’ and planning marketing without understanding return is simply not an option in today’s market.

Can this period of sustained new car sales growth continue at its present rate or is the industry creating a smoke screen that will be blown away?

A tricky one for me to answer as an ‘observer’ of the automotive industry. My gut feeling is that we won’t return to the sales levels seen five or six years ago, sustained as they were by cheap and plentiful credit – and that we will see 2013 sales at a similar level to 2012. The long-term threat lies in today’s teenagers’ relative apathy towards cars and to driving, of course.

How can dealers capitalise on the opportunities that lie ahead in 2013?

The greatest opportunity to improve, and improve fastest, lies in dealers’ aftersales presence online.

Vehicle servicing and MOTs are, like insurance, a grudgingly accepted ‘necessary’ expenditure. Yet drivers renewing their insurance turn to some of the very slickest web experiences out there to make the process as painless as possible. Why – in consumers’ eyes – should booking a service be any different? ��| CarDealerMag.co.uk

Mini CV Name: Alex Rose ve Job title: Industry manager, automoti Age: 31 Lives: London Drives: BMW E30 325i Convertible o (930 Favourite car ever: Porsche 911 Turb Series, pre-1990) Family? No wed Education: Westminster School, follo Business

by Edinburgh University to study the real Studies and Spanish, then out into world in 2005. riments’ Career: Following a couple of ‘expe English in selling door-to-door and teaching the BMW Spain, Rose took up a position on years at graduate scheme. After five happy to Google on ed mov he , knell BMW UK in Brac stry in summer 2010, originally as an indu ager man stry indu ming beco analyst before in late 2011.

What should dealers be focusing on to ensure growth and a sustained future in 2013?

Plan your advertising to be where your consumers are: online and, increasingly, on mobile devices.

Dealers who aren’t visible online will simply fall off buyers’ radars as they narrow their choice of car and seller. This means a sustained commitment to online marketing across all business areas, with equal focus on your desktop and mobile device presence.

And finally, for the superstitious, are you worried the ‘13 reg’ plate change will put buyers off?

If we see a dip in sales attributed to superstitions around ’13 reg’ plate change I will willingly perform my next speaker event for Car Dealer magazine in a Spurs shirt!

Auto Trader Craig Stevens: Dealers need to think of themselves as retailers in 2013 What opportunities are you looking forward to in the car industry in 2013?

The opportunity to help more dealers meet their business objectives by providing them with the tools to maximise new and used car sales. Dealers need to make better use of the market data available with new metrics such as desirability rating, cost to retail and dynamic price positioning set to become the norm in 2013. Dealers also need to understand that the used car market is constantly evolving yet our research shows that 35 per cent of vehicles advertised for more than 60 days have never had a price change.

What’s the biggest threat to the car industry in the coming 12 months?

The market is still suffering from a lack of quality used car stock. We can see, based on Auto Trader demand levels, that consumer demand for quality used cars cannot currently be met in the short term. Although it’s good news that we’re back to a 2m new car market in 2012, the downstream benefit of this will not be felt for a couple of years, yet. This lack of sufficient stock risks stifling used car opportunities.

Can this period of sustained new car sales growth continue at its present rate or is the industry creating a smoke screen that will be blown away?

Steady growth in new car sales is sustainable if it is the result of long-term strategies by manufacturers.

That means matching demand with supply in an orderly manner. Customers get what they want and dealers can manage their business with some certainty. However, ongoing short-term tactical activities could undermine the credibility of this fragile growth.

How can dealers capitalise on the opportunities that lie ahead in 2013?

By understanding consumer behaviour, stock supply and demand and pricing. That means dealers must embrace the digital revolution and utilise the wealth of data at hand to stay ahead of their competition.

A dealer needs to have a strong online presence with a frequently updated and easy to navigate website. A mobile website presence is now also an absolute must, with our latest research showing an 81 per cent year-on-year increase in used vehicle

Mini CV Name: Craig Stevens Job title: Group director digital mark eting Age: 40 Lives: Wimbledon, Greater London Drives: Jaguar XJL Favourite car ever: Audi RS6 Family? Married, no children Education: During his career at Trad er Media Group, Craig has continued to educ ate himself and in 2003 attended the Henley Business School. In 2011, Craig went to Harvard Business School, completi ng the Advanced Management Program 180.

Career: Stevens started with Trader Media Group in 1996 and subsequently held a number of posts including managin g director of Ireland. Stevens is now responsib le for digital marketing services within Trad er Media Group and retains his interests abroad by sitting on the board of iAuto in China.

searches from mobile phones to more than 28m in 2012.

What should dealers be focusing on to ensure growth and a sustained future in 2013?

Maximising the gross profit potential of their used car operations by implementing best practice. And dealers need to start thinking of themselves as retailers. They need to know the retail demand to understand which cars to buy and need to know the retail price to determine how much to pay for those cars.

If they get that right then their used car operation will be a success.

And finally, for the superstitious, are you worried the ‘13 reg’ plate change will put buyers off?

On the contrary, a ‘13’ plate could be a collector’s item, particularly in the cherished plate market for people called BO13.

CarDealerMag.co.uk | 51

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FEATURE.

Hyundai Tony Whitehorn: The industry will remain stable for the foreseeable future What opportunities are you looking forward to in the car industry in 2013?

The dynamic nature of the automotive industry means there’s many opportunities in spite of the challenging market conditions. Hyundai is building on the foundations set by the launch of eight new products in 2012 with significant investments in fleet sales, the dealer network and importantly the customer experience of the Hyundai brand. We are looking forward to growing the brand by offering customers a desirable and complete package of ownership.

What’s the biggest threat to the car industry in the coming 12 months?

Gaining access to finance and the escalating cost of living will undoubtedly have an effect on new and used car sales alongside the cost of manufacturing vehicles, too. Despite this, the UK is in a relatively good position when compared to the other European markets and Hyundai in particular will continue to offer products that are attractive, efficient and cost-effective to purchase and own.

Can this period of sustained new car sales growth continue at its present rate or is the industry creating a smoke screen that will be blown away?

The demand for new cars is forecast to continue at the same levels as in 2012 and it will most likely only be in 2014 that we’ll see an upswing in registrations. Hyundai has performed well above the average and will continue to build upon growing market share and sales volumes in 2013.

Retail and corporate customers will continue to buy new cars so, barring a sudden economic catastrophe, the car industry will remain relatively stable for the foreseeable future.

How can dealers capitalise on the opportunities that lie ahead in 2013?

Dealers can enhance the customer experience at their showrooms as car buyers are extremely knowledgeable and shop around before committing to purchase. The market is competitive but it’s important for dealers to capitalise on opportunities by making it quick and easy for the customer to learn and experience their product.

For Hyundai, expansion in fleet sales will also allow dealers to capitalise on new avenues of business alongside existing retail sales.

Mini CV Name: Tony Whitehorn Job title: President and CEO Age: 53 Lives: Wokingham, Berkshire Drives: Hyundai Santa Fe Family: Married with three children uated with Education: Cardiff University, grad s omic BSC (Hons) degree in Econ Rover Career: Sponsored graduate with Group. Moved to Renault as field sales training manager. Joined Toyota in 1989 as , manager then moved to roles in fleet s ation oper UK ly final and sales , marketing tor, direc g agin director. Appointed man oted to Hyundai Motor UK in 2005 and prom 2011. in CEO and t current role as presiden

What should dealers be focussing on to ensure growth and a sustained future in 2013?

Customer retention is arguably the most important aspect for dealers to focus on in 2013. Hyundai has enjoyed a period of sustained growth, and those who have initially purchased our ‘i’ products would look to purchase the next generation. PCP offers and service plans provide dealers with the opportunity to retain customers and provide backup services that help to guarantee long-lasting customer partnerships.

And finally, for the superstitious, are you worried the ‘13 reg’ plate change will put buyers off?

2012 has been a very positive year for Hyundai and for all new car registrations and we’re expecting that trend to continue into 2013. Early indicators suggest no marked difference in consumer interest in the ‘13’ plate.

CarDealerMag.co.uk | 53

FEATURE.

Supagard Nick Horton: Dealers’ complacency can create lasting damage What opportunities are you looking forward to in the car industry in 2013?

We are looking forward to several opportunities in 2013. The first being the official launch of our newly formed partnership with a prestigious vehicle manufacturer. The partnership will further validate our pedigree within the vehicle protection system sector. We are also looking forward to shifting paradigms within our sector in order to deliver additional value and profitability to our existing and prospective client base.

What’s the biggest threat to the car industry in the coming 12 months?

Complacency. Regardless of the external factors that exist, complacency has the ability to create irreparable damage. The critical shift from potential complacency to continued, appropriate focus is an approach (and attitude) that will allow many organisations within the car industry to create competitive advantage, gain market share and generate long-term prosperity.

Can this period of sustained new car sales growth continue at its present rate or is the industry creating a smoke screen that will be blown away?

Whilst new car registrations broke the two million barrier in 2012, we are still 330,000 registrations short of the 2007 pre-recession level. However, for new car sales growth to continue at its present rate the industry needs a unified approach from the key players that have the ability to impact positively on vehicle registrations, namely; the government, media, vehicle manufacturers and the franchise operators.

How can dealers capitalise on the opportunities that lie ahead in 2013?

By being focused on the key activities that drive the end result. Too often in business we focus on the required result and not the activities that will generate achievement of this end. This can be a high-risk strategy because without continued focus on the behaviours and activities that drive the end result, our teams can unwittingly lose focus which often leads to a loss of momentum and an increased possibility that targets will not be achieved. ��| CarDealerMag.co.uk

Mini CV Name: Nick Horton Job title: Sales director Age: 44 Lives: Nottinghamshire Drives: Volvo XC60 d Escort) Favourite car ever: My first car (For sons two ied, Family: Marr school Education: A local Nottinghamshire ma at Diplo ness Busi nal Natio a followed by Clarendon Academy, Nottingham. his Career: Spent the first five years of ice professional career with the Civil Serv as 1992 in stry indu r moto the g before joinin ess a sales executive. Promotions to busin before manager and sales manager followed ent lopm deve moving into the training and sales as gard Supa ed sent repre has sector. He director for the past four years.

What should dealers be focusing on to ensure growth and a sustained future in 2013?

Customer retention. As we find ourselves within an unforgiving market that shows no sympathy for inadequate customer experiences, raising the game in respect of customer retention has to be a corporate priority in 2013 and beyond.

Remembering that it is said to cost six times more

time, energy and money to gain a new customer than it does to retain a current customer helps to bring the importance of customer retention into sharp focus.

And finally, for the superstitious, are you worried the ‘13 reg’ plate change will put buyers off?

Recognising that 84 per cent of people in the UK are said to be superstitious in some way, I would expect some will be worried about the ’13’ reg plate. However, this question creates an immediate association to the answers provided to some of the earlier questions. In short, combating any potential loss due to the new reg plate is very much in our own hands.

Carcom Gerry Lynch: Online sourcing options should be the focus What opportunities are you looking forward to in the car industry in 2013?

We are bringing a new, online remarketing product, Carcom, to market in early 2013 which we believe will play a vital role in facilitating the efficient exchange, sourcing and sales of used cars within the professional dealer networks. Carcom will provide dealers with unique access to used cars from all the major sources of product in a manner whereby everyone benefits and dealers are helped to raise the tempo of their used car sales and margins.

What’s the biggest threat to the car industry in the coming 12 months?

The UK market for the next few years will be critically short of quality retailable used cars. This is a major problem because used sales contribute so much to dealer bottom-line profits. Industry bodies report overall dealer returns are under 3 per cent of sales and the high-volume fleet groups are under two per cent. Any downturn in used vehicle revenue and margin caused by an inability to access stock could have serious ramifications for their entire business.

Can this period of sustained new car sales growth continue at its present rate or is the industry creating a smoke screen that will be blown away?

The UK is the only one of the top-five EU markets to grow year to date and there is speculation that given some intense promotional campaigns by carmakers, the UK is taking up some of the slack in excess capacity caused by drops in demand elsewhere in mainland Europe. Our view is that the unforced volume market in 2013 will grow marginally in response to a slow rise in retail demand. Preregistered volumes will continue to cloud the situation, however, and may destabilise late-year values of used cars.

How can dealers capitalise on the opportunities that lie ahead in 2013?

A more aggressive stance on part-exchange dealing to reflect recent higher used values will boost dealers’ new and used car sales. Also, it is not only the large dealer groups and plcs that conduct successful national fleet supply business. Fleets and leasing companies value customer service

and it is very often the case that the small to medium individual outlet or dealer group is able to provide a higher level of service and still retain a respectable margin on this business.

Mini CV Name: Gerry Lynch Job title: Chief executive Age: 62 Lives: Edinburgh Drives: Rover 600 Favourite car ever: Triumph Stag Rachel Family? Two daughters, Kirsten and .

Cody son, step and a school in Education: Both primary and high s, the omic Econ and ics Polit BA h.

Edinburg University of Reading. before Career: Graduate entry BL Cars Ltd , leaving sales of tor direc joining BCA rising to chief as plc CFS of d boar the join to in 1996 cape Inch with ds perio t executive. Lynch spen ng up setti re befo wed follo logic Auto and and his own consultancy business in 2008 in om Carc at team the g joinin rly latte March 2012.

What should dealers be focusing on to ensure growth and a sustained future?

Analysis of dealer websites suggests that around half of franchised dealers’ used car volume comes from the three to five-year-old age group and they face several years now when sourcing these cars is going to be increasingly difficult. They need to consider extending their age/mileage parameters to embrace older cars and review their forward stock profiling. Online sourcing options should be the focus, so cars can be sold without moving them and upstream sales opportunities offered.

Finally, for the superstitious, are you worried the ‘13 reg’ plate change will put buyers off?

Where there are customers who do have a worry, the DVLA has said they can have a 62 plate. Our view is that most people will accept the 13 plate.

There is a view that the 13 plate might be popular with buyers, particularly those who personalise CarDealerMag.co.uk | 55

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FEATURE.

Contact Advantage Rob Lewis: The focus should be on doing the basics really well What opportunities are you looking forward to in the car industry in 2013?

Web-based developments coupled with higher manufacturer standards at outlet level will undoubtedly drive in change in 2013. Whilst retail will continue to be difficult, as is often the case, businesses become more innovative when times are hard. We at CA invested heavily in 2012 in new technology, particularly mobile. I am confident we will finally start to see the tools the customer is increasingly demanding.

What’s the biggest threat to the car industry in the coming 12 months?

Complacency for many businesses is tripping dealers up. There remains poor IT infrastructure, poor control of sales process and, on occasion, poor new car sales training in relation to vehicle complexity. With the availability of online information these days, often customers are better informed than us. Many sales teams struggle with change, whereas the customers are all using smart technology and social media.

Dealers aren’t always keeping up, with some even considering returning to paper as a solution, instead of embracing and investing in new media, which ultimately saves them both cash on their marketing spend and enhances customer interaction.

Can this period of sustained new car sales growth continue at its present rate or is the industry creating a smoke screen that will be blown away?

Cars are the only flexible way of having a highquality lifestyle, outside of possibly London, and Brits have become reluctant to walk! New cars are extremely economical and now have the ability to link with smart phones and other lifestyle equipment to deliver a home from home. In my view sales will hold up with funky design such as Fiat’s 500, Nissan’s Juke, and the ever-increasing range of electric vehicles will find markets and continue to drive volume. For example, iPhones are expensive but sales are phenomenal – people want to enjoy life, and lifestyle cars are firmly in that mix.

How can dealers capitalise on the opportunities that lie ahead in 2013?

High quality wi-fi and related infrastructure is what

Mini CV Name: Rob Lewis ve Job title: Managing director automoti Age: 43 Lives: Finchampstead, Berkshire Drives: Range Rover Favourite car ever: Jaguar E-Type Family: Married eight Education: Left school at 16 with national O-Levels to join Lloyds Bank’s inter business in ma diplo BTEC d plete com division, year d plete com studies at night school and re befo y Surre of y ersit Univ at 1 of an MBA dropping it to undertake an MBO. / Career: After 13 years with Lombard ent FNMF including a long-term secondm CRM of head ately ultim nce, Fina to Citroen ing a and customer retention before lead eting successful MBO of one of his mark Business functions in 2002 to form Actuate marketing sales after and CRM This .

Solutions national business was acquired by MSX Inter to view a with 2011 in CA d Joine in 2007. in the UK developing the business both with and internationally.

customers want. Dealers can see customers enjoy smart technology, every piece of data reflects that fact, yet some dealers struggle with even collecting email addresses, let alone using them. Email and digital communication is now what customers expect, the good news for the industry is with minimum investment the quality of delivery can

be excellent and the on-going delivery costs very low.

What should dealers be focusing on to ensure growth and a sustained future in 2013?

The focus should be doing the basics really well – training and coaching coupled with the latest technology. It is the customer experience that separates one dealer from another. We see huge investment in premises and yet the customer’s interaction with a salesman has hardly changed.

2013 will see the convergence of online, mobile and traditional media via tools like iPads.

And finally, for the superstitious, are you worried the ‘13 reg’ plate change will put buyers off?

The number 13 is a chance for sales teams to sell private plates and make some extra profit. The DVLA website is simple to use and the process is refined if the sales team have web access. In China, which has half the world’s population, 13 is just another number whereas four is unlucky as it sounds similar to death. For us 13 is deemed unlucky because of the number of people who went to the Last Supper. I’m not superstitious – in Guatemala 13 numbers win the state lottery! [CD] CarDealerMag.co.uk | 57

FEATURE.

talking

heads

Keytracker Ltd

C

hange is going to be the keyword for 2013. Lessons learnt over the last few years and even more so from such an unusual year of trading as 2012 should be implemented. Throughout the automotive industry we continue to see a high level of mergers and acquisitions as well as a number of businesses going into administration, which is very sad. Customer expectations are changing much quicker than ever before, so we will be developing our online purchase routes and seeking more customer feedback to ensure we continue to match our products and services to our customers’ needs. On a lighter note, considering we were braced for a tough 2012, December was one of our most successful ever in 16 years of trading. The positive vibe seems to be growing out there and we are all sure that 2013 will see growth for many but only if you can react quickly to the market.

Aston Barclay

W

e have experienced unique times in the used car trade for the second year running, whereby cars sub £5,000 are in the price guides at higher price levels at the end of the year than they were in January. This is unprecedented and more incredible in that it has been repeated two years on the bounce! This cannot continue and the bubble will burst with Easter being the likely watershed. Be proactive and read the market to minimise the shock of sudden downward price movement. Only following this adjustment can used cars once again appear great value to the consumer.

David Scarborough director

Helen Bell sales manager

Central Car Auctions

T

What does 2013 have in store for the motor industry?

We ask some of the trade’s leading suppliers what they think dealers can expect this year

SUPPLIERS GUIDE PAGE 70 ��| CarDealerMag.co.uk

he chancellor may be predicting economic doom’n’gloom but there will always be customers. Sure, monies will be tighter and our own customers are likely to see times in the year when growth is stagnant if not regressing.

You just need to keep working hard to attract and keep those customers – new, lapsed and even those thought lost. The economic future is going to dictate our businesses deliver better value, even better service and the very best in profit opportunity – often all three simultaneously. At Central Car Auctions we strive to stay ahead of the times and our competitors, with a better offer and better facilities. Our newly launched ‘Twin Auction’ arena will help achieve that along with over 1,400 vehicles auctioned weekly and a marketing drive to attract new customers from across the UK to our venue in Glasgow – the largest in Scotland with auctions every Monday, Wednesday and Friday.

Wishing you good business in 2013.

Jason Miller managing director

Money Barn

T

he strong demand for consumer car finance that the industry has seen in 2012 will probably continue into 2013. Recent rises in private purchases of new cars have been a welcome relief for the industry and should hold up over the coming year. The used car market continues to grow at a steady rate, providing a challenge for consumer finance companies at a time when wholesale funding is restricted. The non-prime market will therefore remain a significant opportunity for dealers – in particular, the fallout from the last five years of economic challenges means decline rates are unlikely to reduce any time soon. At Moneybarn, our commitment to supporting dealers will be as strong as ever – in our wide product range, our speed and quality of service and of course the awardwinning sales and marketing support we offer free to all dealers.

Shamus Hodgson, director of sales and marketing

AutoProtect

W

Babcock

Carcom

A

ith the risk of negative GDP figures in the final quarter of 2012, the outlook for the year ahead continues to be one of challenge, but within this we do expect car sales to grow. With the wider European new car market in a state of depression, we expect that many manufacturers will be keen to support the UK market.

However, we expect consumers to remain heavily deal-focused, which will keep margins tight, especially as dealers chase volume targets. ‘In this environment the importance of maximising the value of each sale through added-value products is likely to become even more important to ensure an acceptable ROI is secured.’

pprenticeships are going to be big in 2013 as businesses strive to be ever more competitive in a market of increasingly discerning customers. Apprenticeships will also be under the spotlight as research shows that they are now attracting the best and brightest of school leavers – those eager to work hard, learn and succeed. Babcock’s award winning programmes are ‘business-led’, which means that the skills and knowledge gained by learners are 100 per cent relevant to the businesses they work for, in both the immediate and the long term. Training delivery is flexible, fitting around the day-today needs of your business.

Mike Macaulay corporate development manager

John Chambers operations manager – automotive

T

he new car market will be marginally ahead of 2012 in numbers but largely because preregistrations will rise above the 100,000 units of last year (KPMG estimate) in an effort by makers to mop up some of the excess capacity elsewhere in the EU. The main impact will be on used cars. Demand for younger cars has been dampened by macroeconomic influences. However the UK economy will slowly improve in 2013, and consumer demand for used cars will rise, which means that the growing shortage of younger used cars will become ever more apparent. Dealers therefore need to find new ways to source these scarcer younger cars in 2013 in order to maintain overall margins in the business in what will be another tough year to make decent returns in the retail industry.

Gerry Lynch chief executive

Autotrade-mail

T

he challenges of 2013 will see successful dealers being the ones who embrace their prospects through all media (walk-in, social, live-chat, email, etc) and, importantly, will be the ones target sourcing and selling cars that those consumers are asking for. That’s unlikely always to be the cars on their forecourt or just their over-age stock. Therefore the challenge is to understand your customer better, embrace all marketing media, source what the customer wants, and dispose of each part-exchange and over-age as an individual car within minutes, not hours or days. These simple challenges will, of course, mean a lot of hard work but then no one said success was easy.

Kevin Watson operations director

Motor Industry Recruitment

T

he next 12-24 months are going to be challenging for the motor industry; especially in the frontline retail environments, both franchise and non franchise. Your employees are unquestionably your most valuable asset. They are the face and voice of your company. Their confidence and skills grow the longer they stay within your operations, so it is vital that you take in the right people and, once you have, that you keep them. When using any recruitment supplier it is vital that they have a strict no headhunting and no calling placed candidates policy to ensure you can find and keep good staff. Motor Industry Recruitment offer exactly that.

Richard Gosling director

AutosOnShow

C

hanges in customers’ buying habits will see more buyers entering the online market in 2013. This means a higher demand for video and imaging solutions working together as one – with dealerships making their presence online interactive and tapping into the profitability that can be achieved there. The advent of 4G coupled with video means more dealerships will be focusing on their video strategy to reveal the opportunities that online shopping provides. This will open more cost effective revenue streams and new marketing possibilities, all bringing significant increases in demand for incorporating better technology into websites and dealerships in 2013.

Anton Morris marketing assistant

CarDealerMag.co.uk | 59

DATA FILE.

Thestatistics n

SMMT Sales Data

Private registrations soar as the fleet market remains flat Highest annual figure since 2008 surprises industry in face of doubts about 2013 demand

T

he UK car market exceeded 2m registrations in 2012, SMMT figures have revealed. A 5.3 per cent rise in registrations pushed the figure to 2,044,609 by the end of December – up from 1,941,253 in 2011, and the highest annual figure since 2008.

The rise comes as a surprise to the industry, with sales taking an unexpected surge during the middle of the year. NFDA and Deloitte analysts, in January 2012, predicted the end-of-year figure would be around 1.84m registrations – warning of a drop from 2011. Private registrations are again leading the figures: up 12.5 per cent against 2011.

The SMMT puts this down to retailers and manufacturers keeping on the ball – suggesting that ‘regular replacement cycles, offers and incentives’ might have contributed to the upturn.

Things aren’t so rosy for the fleet market, though – staying flat with a 0.3 per cent drop in December and a 0.6 per cent rise for 2012 overall. Business registrations dropped even further – down 16.5 per cent in December, and 9.5 per cent for 2012 overall.

December itself proved to be a fruitful end to the year, though, with a 3.7 per cent rise over the same month in 2011.

Both the ‘mini’ and ‘supermini’ segments

NISSAN record IT’S good news for Nissan, as its sales rose an impressive 9.94 per cent against last year.

Their most popular model, the Qashqai, did particularly well – with 45,675 units registered, a rise of 7,000 against 2011. ‘Despite an increasingly competitive market, 2012 was a record year for Nissan,’ said Jim Wright, managing director for Nissan GB. ‘We look forward to building on this success in 2013 with many more new models, including the replacement for the Note. We intend to keep breaking records and over the next few years I anticipate many more will fall.’ ��| CarDealerMag.co.uk

proved popular across the year; with the former up 54.2 per cent and the latter 5.6 per cent.

Diesels increased their lead even further, too, now with a 50.8 per cent share of the market against 50.6 last year. SMMT chief executive Paul Everitt was pleased by the figures – anticipating that the rise may continue into 2013.

‘Boosted by strong consumer demand, the market grew at its fastest rate for 11 years with innovative, fuel-efficient cars keeping buyers in showrooms,’ he said. ‘Looking ahead to 2013, we anticipate the market will hold firm, with manufacturers and dealers working hard to deliver quality and value to motorists.’

Others, however, were less positive about what the future might hold. Richard Lowe, head of retail and wholesale at Barclays, suggested that while 2012 was positive, dealers should still be cautious going into 2013.

‘As we look to the year ahead the real question is whether this demand will hold. Consumer pockets will continue to be squeezed, and with preregistration figures increasingly accounting for a larger percentage of the market, both manufacturers and dealers will have to be careful that supply does not outstrip demand.’

David Raistrick, leader of UK automotive at Deloitte, was similarly cagey about how things might progress in the next year.

‘With mixed messages coming from economic statistics – unemployment numbers falling whilst output data hovers around the borders of low growth/contraction – it is unlikely that the UK will see any major growth in new car sales during 2013.

‘Indeed, following the best year for new car sales since 2007, there is a strong likelihood that 2013 will see a reduction in the numbers of new cars sold.

Artificial stimuli, such as preregistrations or self-registrations, are not possible on a sustained basis so we expect them to decrease during 2013.’

Positive year as Fiesta beats Corsa to top tables FORD’S Fiesta was the best selling car of 2012, according to the SMMT. Selling 109,265 units in 2012, the Fiesta beat the Vauxhall Corsa to number one – the latter achieving 89,434 registrations.

The Ford Focus was in third place with 83,115 put on the roads, followed by the Vauxhall Astra and Volkswagen Golf with 63,023 and 62,021 registrations, respectively. The Nissan Qashqai proved popular, coming sixth with 45,675 units, while BMW’s 3-Series came seventh with 44,521. Finishing in eighth, ninth and 10th were the Volkswagen Polo, Mercedes C-Class and BMW 1-Series – at 41,901, 37,261 and 34,488 registrations.

For most manufacturers, 2012 was a generally positive year. Ford, Citroen, Audi, Nissan and Honda all jumped between five and 10 per cent. Some did

particularly well: Hyundai was up 18.1 per cent, Skoda rose 18.95 per cent and Suzuki 22.66 per cent.

Kia, Fiat and Toyota also did well – up 24.27, 19.93 and 14.91 per cent. Even premium brands managed some impressive rises – Land Rover shot up 29.2 per cent as their Range Rover Evoque came into showrooms, while Mercedes-Benz rose 12.19 per cent.

Chrysler saw a big jump: with 2012 coinciding with a new product line, registrations rose by 181 per cent.

Ssangyong did well, with the Korean firm more than tripling registrations with two new models.

It wasn’t good news for everybody: Renault’s registrations fell 40 per cent after it removed model lines and shut showrooms. Subaru lost nearly a quarter of its yearly figure and Alfa Romeo saw a 37.27 per cent fall, following a cull of its product line.

SMMT sales data Dec/year to date December 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

120 290 64 4,786 83 10,175 436 135 3,935 0 3,260 15,656 3,331 5,551 42 1,054 120 3,890 2,532 390 14 14 970 5,261 93 4,499 735 6,441 22 4,757 761 1 3,733 0 2,799 3,199 514 65 92 1,564 4,149 16,272 9,651 2,030 50 21 123,557

% market share

0.10 0.23 0.05 3.87 0.07 8.24 0.35 0.11 3.18 0.00 2.64 12.67 2.70 4.49 0.03 0.85 0.10 3.15 2.05 0.32 0.01 0.01 0.79 4.26 0.08 3.64 0.59 5.21 0.02 3.85 0.62 0.00 3.02 0.00 2.27 2.59 0.42 0.05 0.07 1.27 3.36 13.17 7.81 1.64 0.04 0.02

ALFA ROMEO -37.27%

CHRYSLER +181.89%

2011

Year to date (YTD) % market share

2012 % Change

78 608 53 6,310 51 7,535 705 109 4,030 0 2,203 14,689 2,261 5,422 34 813 213 2,509 2,747 683 10 18 1,635 4,815 111 4,278 469 5,789 21 4,643 718 21 4,548 8 2,485 2,878 335 51 141 1,222 5,495 15,782 10,549 2,001 61 51 119,188

0.07 0.51 0.04 5.29 0.04 6.32 0.59 0.09 3.38 0.00 1.85 12.32 1.90 4.55 0.03 0.68 0.18 2.11 2.30 0.57 0.01 0.02 1.37 4.04 0.09 3.59 0.39 4.86 0.02 3.90 0.60 0.02 3.82 0.01 2.08 2.41 0.28 0.04 0.12 1.03 4.61 13.24 8.85 1.68 0.05 0.04

53.85 -52.30 20.75 -24.15 62.75 35.04 -38.16 23.85 -2.36 0.00 47.98 6.58 47.32 2.38 23.53 29.64 -43.66 55.04 -7.83 -42.90 40.00 -22.22 -40.67 9.26 -16.22 5.17 56.72 11.26 4.76 2.46 5.99 -95.24 -17.92 -100.00 12.64 11.15 53.43 27.45 -34.75 27.99 -24.49 3.10 -8.51 1.45 -18.03 -58.82 3.67

1,292 7,253 932 123,622 1,267 127,530 13,476 3,333 73,656 0 49,907 281,917 54,208 74,285 530 14,109 2,306 66,629 48,626 8,404 137 309 26,183 91,855 782 51,324 6,549 105,835 416 99,486 7,998 208 40,760 232 38,798 53,602 5,616 875 2,023 24,893 84,563 232,255 183,098 31,790 926 814 2,044,609

%market share

0.06 0.35 0.05 6.05 0.06 6.24 0.66 0.16 3.60 0.00 2.44 13.79 2.65 3.63 0.03 0.69 0.11 3.26 2.38 0.41 0.01 0.02 1.28 4.49 0.04 2.51 0.32 5.18 0.02 4.87 0.39 0.01 1.99 0.01 1.90 2.62 0.27 0.04 0.10 1.22 4.14 11.36 8.96 1.55 0.05 0.04

2011

Figures supplied by SMMT

%market share % Change

1,291 11,563 1,024 113,797 1,037 116,642 12,524 1,182 68,464 3 41,612 265,894 50,577 62,900 382 13,787 2,146 53,615 37,637 8,269 329 388 31,219 81,873 360 50,138 9,843 96,269 543 94,989 6,382 446 68,449 4,138 36,089 45,061 5,044 194 2,634 20,295 73,589 234,710 179,290 32,657 1,115 863 1,941,253

0.07 0.60 0.05 5.86 0.05 6.01 0.65 0.06 3.53 0.00 2.14 13.70 2.61 3.24 0.02 0.71 0.11 2.76 1.94 0.43 0.02 0.02 1.61 4.22 0.02 2.58 0.51 4.96 0.03 4.89 0.33 0.02 3.53 0.21 1.86 2.32 0.26 0.01 0.14 1.05 3.79 12.09 9.24 1.68 0.06 0.04

0.08 -37.27 -8.98 8.63 22.18 9.33 7.60 181.98 7.58 -100.00 19.93 6.03 7.18 18.10 38.74 2.34 7.46 24.27 29.20 1.63 -58.36 -20.36 -16.13 12.19 117.22 2.37 -33.47 9.94 -23.39 4.73 25.32 -53.36 -40.45 -94.39 7.51 18.95 11.34 351.03 -23.20 22.66 14.91 -1.05 2.12 -2.65 -16.95 -5.68 5.32

CarDealerMag.co.uk | 61

data file.

DECEMBERSEARCHES

Percentage of total number of searches on TheVanWebsite.co.uk for the month Mercedes-Benz Sprinter

4.99%

Segment-first tech extras for new Fiesta van Now the vehicle automatically calls 999 in the event of an accident

Ford Transit

4.41% Ford Ranger

3.55% Mercedes-Benz Vito

3.39% Volkswagen Transporter

2.95%

Volkswagen Caddy

2.44% Vauxhall Vivaro

2.2%

Ford Transit Connect

1.98% Mitsubishi L200

1.33% Vauxhall Movano

1.32%

F

ord has launched its revised Fiesta van range following the facelift of the passenger car on which it’s based. The Fiesta van now has a choice of three engines: a 1.25 petrol assembled at its Bridgend plant in Wales and two diesels put together in Dagenham – a 92bhp 1.6 and new 72bhp 1.5.

Both diesels now achieve sub100g/km CO2 outputs, while an Econetic version is also available.

Utilising a ‘specially modified’ version of the 1.6TDCi, it outputs an impressively low 87g/km, and achieves 85.6mpg on the combined cycle.

Ford is also boasting ‘segmentfirst’ technologies for the van, including its new SYNC in-car connectivity system, carried over from the Fiesta. With voice recognition and Bluetooth connectivity to your phone, it’ll even read out text messages to

drivers. An ‘emergency assistance’ feature automatically telephones the emergency services in the event of an accident, letting them know the location of the vehicle.

Also available are Active City Stop, which brakes the car when it detects a slow-speed accident is about to occur, and programmable MyKey systems – while it can also be specced with usual Fiesta additions like a rear-view camera and 17-inch alloys.

‘The new Fiesta van is a stylish mobile workshop for light duty tools and equipment that makes great business sense,’ said Mark Easton, Ford’s light commercial vehicle product manager.

‘Both local tradesmen and urban delivery fleets will appreciate its sharp, professional looks, while relying on its versatility and dependability and low running costs.’ The van is available to order now.

Move fast for Mercedes Citan deal MERCEDES BENZ’S new Citan compact van starts from £195 per month (ex VAT) slotting in just below the Vito. Buyers can choose from Compact, Long and Extra Long editions, holding from 2.4m3 to 3.8m3, with payloads from 330kg to 735kg. Dualiner and Traveliner options equip the pint-sized van with a second row of seats making a comfortable

five-seater. Available with only the 108 CDI engine, Mercedes boasts impressive economy.

The BlueEFFICIENCY level offers 65.7mpg combined and emissions of 112g/km. The £195 per month deal is limited to 250 of the Compact Trade edition on fixedterm ‘Agilty’ finance contracts.

The cheapest 108 CDI Compact is a shade over £13,000 (ex VAT).

your sales...

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DEALFINDER. Latest finance deals on COMMERCIAL

Buyers get to pick from a substantial range of trim levels and cab options, too.

There’s regular cab, super and double cabs, with a chassis option for the first two.

The most practical is the double – with four fullsized doors, it gives a car-like environment for five occupants and a stillsizeable load bay. One offer for the double cab 2.2TDCi in Limited trim puts the Ranger at £20,695 – almost exactly £1,000 less than list price! For details, type bit.ly/RangerDealFeb into your browser.

Mercedes-Benz Sprinter The Sprinter is a handsome van and make no mistake. The nameplate has been designated to Mercedes-Benz’s largest vans for the last 17 years – and while that might not be quite as long as the tenure Ford’s Transit has clocked up, it’s had plenty long enough to establish its self in the market place as a solid, dependable option.

Today’s Sprinter comes in just about any shape you could possibly want – either as a panel van, minibus with up to 17 seats, chassis cab or dropside with either

standard or crew cab. Add to that the three or four different vehicle lengths and a range of engine options and you should find a Sprinter for every occasion.

The 313CDI medium wheelbase should be plenty for the average panel van user, though – with 129bhp and 305Nm of torque, it has a payload of 1205kg and a cargo volume of 9.0m3. One current cracking deal puts that model at just £21,995 – a pretty substantial saving off the 313CDI MWB’s £26,525 list price! For details, type bit.ly/ SprinterDealFeb into your browser.

Ford Transit The Transit is a bit of legend in the commercial vehicle sector. Market leader when it was launched, and probably still the case today, the Transit is often a go-to product when it comes to picking a van.

Naturally, there are versions for every shape and size of business – ranging from the standard, short-wheelbase ‘low roof’, which has an already capacious 5.2m3 load bay, to the cavernous long-wheelbase Jumbo, which has almost three times the space at 14.3m3. Buyers can even choose between front, rear or

COOL CONVERSIONS

Rise of the boutique van

Ford Ranger Ford’s Ranger has had a total relaunch to great acclaim. It’s smart new look comes complete with a striking chrome grille and a trendy selection of colours to help it stand out from its rivals.

That’s not to say it’s all show and no go: Ford proudly state they put a lot of effort into the development, testing the new pick-up in some of the world’s most hostile environments. It seems to have paid off, as Ford has covered the Ranger in off-road aids to help drivers feel confident.

Lawton

four-wheel drive or plump for an extra row of seats, turning the Transit into a capable crew van.

The short-wheelbase low roof is probably one of the most popular model choices though, and with competitive deals bringing the esteemed nameplate to more and more businesses it’s not surprising.

One such offer puts the low roof, shortwheelbase 100PS Transit on business lease deal for as little as £219 per month!

For more information, type bit.ly/ TransitDealFeb into your web browser.

M

ini entering the commercial vehicles sector raised a few eyebrows when the Clubvan, based on the Clubman, made its debut in 2012. It isn’t a new idea though – back when Minis were truly miniscule, the Oxford-based brand produced over half a million examples of its mini van over 22 years, finally stopping production in 1982.

However, roll on 30 years and this new Mini van highlights the changing face of the light commercial vehicle market – as vans get kitted out in more car-like equipment, bodykits, and high-performance engines.

The Clubvan takes this to the next level, offering the astute small business owner the chance to drive a workready vehicle with added panache. It can also reinforce perceptions about the business.

Isn’t the Clubvan the perfect vehicle for plenty of industries that need a commercial vehicle but don’t need the square footage or payload that a mid-sized van offers?

And given the choice what’s more desirable – a van based on a Fiesta, a Corsa, or a Mini? No contest.

But that has got me wondering about the next boutique van and there are a couple of candidates for conversion which could take the Mini on in the style stakes.

First up is the new Fiat 500L, the slightly bigger brother to the all-conquering 500, the 500L (L stands for larger) could give van drivers a splash of Italian style although its five doors would mean a substantial revision. Hopefully, the optional extras list would also make the transition, as it comes with a coffee maker!

The second cool motor which could work as a highly desirable van is the Citroen DS3, again another sales winner after making the French brand cool again. With the DS3 having a potential 980 litres of space, it could offer a greater load volume than the Clubvan.

‘The Clubvan takes this movement to the next level.’

Who is Richard Lawton?

Richard is marketing manager for Really Good Domains and on the team at TheVanWebsite. co.uk and ContractHireAndLeasing.com.

Contact: richardl@reallygooddomains.com

Call 0161 482 7650

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Take the challenge. Log into your account and track the calls you receive through our website, using our new call monitoring service. www.motorcodes.co.uk

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auctions.

Peter Schreyer appointed as new Kia president bit.ly/Kiapresident

Used-vehicle prices reach all-time high Stock shortfall unlikely to change with current economic pressures

A

stock shortfall pushed used values in December to an alltime high, BCA has suggested.

Values for used vehicles averaged £7,361 – a rise of 14.6 per cent against November and the highest monthly figure on record, said BCA. Year-on-year figures were also impressive – December 2012 ahead by 14.1 per cent, or around £900.

Before Christmas, dealer part-exchange volumes fell and so a higher proportion of high-value fleet and lease vehicles hit auction rooms. BCA suggests professional buyers were more active in December, competing to stock forecourts for the busy new-year period. However, average values for fleet and lease, dealer part-exchange and nearly-new vehicles were all good, with year-on-year values well ahead of December 2011.

Fleet and lease values averaged £8,590, up 4.7 per cent, while part-exchange values

improved by £423. The nearly-new sector saw the biggest rise – up £1,808 to £22,337.

‘December typically records an uplift in month-on-month values,’ said Tony Gannon at BCA. ‘Records were established in 2010 and 2011, so it should come as no surprise that December 2012 set a new benchmark value, particularly when factoring in the general lack of stock in the marketplace. Overall, prices remain strong despite demand being relatively flat and the lack of stock has generally meant good returns for business sellers.

This stock shortage is long-term and unlikely to change until new car volumes pick up significantly. With the continuing economic pressures and reduced consumer confidence we should not expect to see the same robust value growth in 2013 that was experienced in 2012.’

Time to focus on key details of remarketing he said. ‘While consumer confidence is MANHEIM suggests dealers should still fragile, our data suggest that new keep tight control of their part-exhange car sales are robust and dealers are stock at the start of 2013. Valuation achieving good prices. services manager Darren Wiseman urges caution to dealers in danger of ‘The challenge facing dealers is to being over confident in the surprisingly ensure they continue to achieve best positive market in which the value of value for all their part-ex vehicles, not part-exchanged vehicles ended on a just the forecourt stars. The secret to high in 2012. success in 2013 will be even tighter control of the when, where and how of ‘Our latest figures show that despite remarketing; When is the best time to sluggish growth in other parts of the put a car into auction and where is the retail sector, 2012 has probably been a best location pretty good year for a lot of dealers,’ Car dealer cowboy ads 7/1/13 09:44 Page to1 sell a particular car?’

No cowboys.

Just Just trade trade professionals. professionals.

Henstock auction stations

Are used cars in the fast lane for 2013?

W

ith on-going economic pressure, rising costs and a relatively weak retail environment, it might seem counter-intuitive to suggest that used car values will continue to be firm this year. However, supplies reaching the wholesale used car market are quite significantly down on the peak seen four to five years ago and the real shortage of good quality, ready-to-retail used cars continues.

This means buyers should expect fierce competition for the best examples reaching the remarketing arena, and values that reflect this demand. It really is ‘more of the same’ that the market experienced in 2012.

BCA recorded six consecutive months of record values for fleet and lease cars from May to October last year, while dealer part-exchange cars recorded the three highest average monthly values on record between September and November. And those records were set during a year when the UK slipped back into recession.

Currently, there appears to be little on the horizon that is going to change this state of affairs but it is worth considering that the markets are unlikely to see the same year-on-year value growth in 2013.

Of course, at the end of the chain it is the consumer who will decide where the peaks and troughs of demand will occur in 2013. Our experience suggests that when it comes to buying used cars, motorists know exactly what they want to buy and seek to get that car at the best possible price.

And that will never change!

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

CarDealerMag.co.uk | 65

RIGHT CLICK.

..in association with GForces

Service plans can help to fill the gap Right approach makes easy work of nudging drivers to keep up maintenance

A

s every dealer knows, full-service bays are more effective than anything else at swelling the coffers. But persuading car owners to stick to maintenance schedules at this time of year is an unenviable task.

Most consumers are still suffering from a metaphorical financial ‘hangover’ following their Christmas spending spree.

Those that aren’t have probably been too busy hitting the sales to think about servicing their current car.

For the price of a full service they could, for example, acquire the latest must-have tablet device – a no brainer for a growing number of Brits already concentrating on reducing car-related spending.

An additional factor for franchised dealers is the increasing competition within the aftersales market from independents and fast-fits, which are continuing to make year-on-year gains in their share of servicing, maintenance and repair work.

The latest Castrol Professional Car Servicing & Repair Trend Tracker report indicates that independents and fast-fits captured 48 per cent of servicing jobs in the first half of 2012, up from 45 per cent in 2011 and 32 per cent a decade ago.

By contrast, franchised dealerships carried out

just 25 per cent of servicing work during the first eight months of 2012, a 1 per cent decline on 2011’s full-year figures.

An effective way of combating this decline in aftersales retention is through service plans, such as the GForces NetDirector Service Plans system.

Offered at the point of sale, the plans guarantee repeat custom for the dealer and spread the cost of servicing for the consumer, while guaranteeing their car is properly maintained. It’s a win-win scenario and in a recent survey over 80 per cent of dealers offering them said that service plans were profitable.

Clearly there is also an education job to be done. Too few consumers understand the broader benefits of adhering to the manufacturer schedule and accessing the brand-specific know-how only a main dealer can provide.

When it comes to used vehicles, the NetDirector system can be tailored to offer simple and transparent fixed-price plans. Some dealers using service plans have found used car customer conversion rates of 60 per cent – some 36 per cent above typical rates.

For the dealer there is a whole range of benefits.

First and foremost is guaranteed business and cash flow. Dealers will know in advance how

many service bookings and the type of work they will have on their books. As NetDirector Service Plans is paid for by the dealer through a licence fee rather than a cost-per-plan basis, all monies for the service bookings themselves are paid by the consumer to the dealer by Bacs, offering a predictable cash-flow advantage.

Another important factor is that service plans can be tailored. For example, many dealers using NetDirector Service Plans have reported better plan sales by offering easy-to-understand fixed-price plans for used cars.

Some manufacturer schedules were difficult to understand and expensive, resulting in lower sales, so a simple Gold, Silver and Bronze system – with the potential to sell add-ons – has now been adopted by many.

Service plans aren’t a panacea to lacklustre new car sales at this time of year but dealers can certainly experience a little financial sunshine during the inclement winter months by maximising opportunities for guaranteed income.

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.

‘Dealers can enjoy a little financial sunshine during the inclement winter months.’

A new year... a new generation of software

0845 658 9290 | info@gforces.co.uk | www.gforces.co.uk

��| CarDealerMag.co.uk

TRADER TALK

..in association with AutoTrader

Data key to quick turnover of stock Metrics allow you to have the right car in the right place speeding up sales

M

ost used car dealers will tell you that the vehicles they stock are in demand and will retail quickly to generate much-needed profit.

But how can that be true when recent research found that out of more than 425,000 used cars offered for sale, 125,000 were in low demand in the area where they were being sold.

That means, on average, nearly a third of vehicles in used car dealer forecourts throughout the country are the wrong cars in the wrong place.

If you believe that you are stocking what is in demand locally but 30 per cent of your stock is in low demand, the chances are that most of your competitors are in exactly the same position.

Which means that whoever identifies that unwanted 30 per cent, and replaces those vehicles with cars that people actually want to buy, will reap the benefits.

Having the right cars (that are in demand) in the right place (where that demand is and where the potential profit margin is highest) is critical.

But how can you determine if the used car in your showroom or the one you are just about to take in part exchange or buy at auction is in demand locally and is worth stocking?

‘With 125,000 cars in the wrong place there is huge opportunity to win.’

The answer can be found in the wealth of market data available and the intelligent use of that data is fundamental to the success of the used-car operation.

If you try to buy cars without using the available market data you will find it a haphazard process at best. The right market data will confirm if your used car stock is actually in line with what is in demand locally. Stocking a selection of Fiesta, Astra, Clio and A4 models when local consumers are looking for a 3-Series, Focus, Corsa or Golf could compromise your stock turn and undermine the gross profit potential.

However, if you use the right market data in the right way you will not only be able to identify what’s in demand in your area but will also ensure that you pay the right price to be able to sell at the right price to maximise your gross profit potential.

The data will include metrics that track consumer supply and demand, measure stock turn and identify the potential gross profit margin. These metrics will enable you to make business-critical decisions such as whether to hold stock, reprice stock, purchase new stock or dispose of vehicles and how to assess the potential of a part exchange.

Combining these metrics with a retail mindset will result in the right cars being in the right place. Given there are 125,000 cars in the wrong place there is a huge opportunity to win in this environment.

However, many dealers are still either unable or unwilling to use the data, and some don’t even trust it.

If you didn’t make a new year’s resolution why not make one now to use the data available, make more money and beat your competition.

What have you got to lose?

Who is Tim Peake?

Tim is group strategy director at Trader Media Group,‚ publishers of Auto Trader, the UK s largest car marketplace. Visit autotrader.co.uk

YOU. ARE. NOT. A. RO. BOT

Manage your pricing quickly and easily It’s not always easy to know what to pay or charge for stock. And with so many sources to consult, it can be difficult to stay on top of prices. Our Intelligence Packages are run by clever robots that quickly provide you all the answers you need to know.

Including Profit Indicator and Market Tracker, you can check what’s profitable before you buy and stay competitively priced before you sell. So, why not give the Ro. Bots. A. Try. To find out more about our Intelligence Packages, just call us on 08433 088 875 or visit www.dealerportal.co.uk CarDealerMag.co.uk | 67

DRIVING VALUES

..in association with Trusted Dealers

Internet enquiries are golden Dealers who don’t recognise the power of emails are missing a trick

T

he new year provides the perfect opportunity to review the performance of your business and make sure that your working strategies and methods are as good as they can be. One of the most powerful tools within any business is the internet, which brings with it the ability to send and receive emails every hour of the day.

Emails can be the hidden gold dust in a business if they are used correctly.

Most companies receive many emails every day and it can be difficult to respond to each with the necessary care and detail – this is where you could be missing a trick if you fail to recognise the power of an email enquiry.

With access to the internet now so universal via the use of mobile, tablet and desktop devices, people can surf the net and get in touch at any time of the day or night.

In fact, internet shopping during the evening has become popular as people have more time to conduct the necessary research and browse for the things they want.

Making sure your website offers potential customers an easily accessible, user-friendly service is half the battle – good-quality photos and high definition video can go a long way towards attracting buyers, but it’s how you go on to handle an email enquiry which is key to a potential sale.

To do this successfully you need to know what questions to ask the potential customer in the

��| CarDealerMag.co.uk

‘Social media are great but handling email enquiries well will automatically generate leads.’ first instance. Capturing data such as contact details and an email address is the first step but failing to follow up on enquiries regarding a specific car or deal will be detrimental to making that all-important sale.

Trusted Dealers recently conducted a survey in which we mystery-shopped 60 of the top dealer groups across various dealer websites and classifieds to find out which dealers responded to their emails within 24 hours and provided the best all-round service to customers.

Just over half responded within 24 hours, with Snows Group’s answer within 10 minutes being the fastest off the mark. Lookers were only just off this pace and many other groups were ahead of the hour cut-off point at which customers lose interest.

Other groups had very well presented responses and a robust follow-up which we can

share (rather than invite loads of mystery shops to those demonstrating best practice). For Trusted Dealers guide to email best practice just drop me a line – neil@trusteddealers.co.uk.

Although social media have become an internet phenomenon and provide a great platform for you to promote your business on a regular basis, it is important to realise that handling email enquiries well will automatically generate leads.

If you have a well-trained, well-drilled team and give them the right tools, your email enquiries will quickly turn into sales.

Beyond immediate response, if you haven’t already done so, it is well worth looking into the procedures you have in place to farm your existing customers, as well as website visitors and prospects. Setting up some simple procedures such as an email to welcome people to your site, or a regular newsletter to keep people in touch with the latest deals and company news, is one way to forge a lasting relationship with buyers.

Who is Neil Addley?

Neil is MD of Trusted Dealers, the used car website owned by dealers.

To find out about becoming a member call 01423 225166.

CSI FILES.

Negative reviews are important as well Online comments are a powerful sales tool and should be noted as such

C

ustomer reviews are proven sales drivers within the car market and are something that more than 70 per cent of customers will want to see before making a purchase.

The statistics around reviews make compelling reading and offer numerous benefits from a financial outlook, as well as an internal processdriven perspective. User reviews increase conversions and sales. They can eliminate any doubts potential customers may have about a product, and help product selection.

We like leaving reviews, too. Statistics reveal that 47 per cent of Britons have reviewed products online, which suggests there is no shortage of people ready to provide their opinions. Industry statistics reveal that 63 per cent of customers are more likely to make a purchase from a site which has user reviews (iPerceptions, 2011). Consumer reviews are significantly more trusted (nearly 12 times more) than descriptions that come from manufacturers, according to a survey of internet users (eMarketer, February 2010).

And the biggie: industry sources state that reviews produce, on average, an18 per cent uplift in sales. In the car industry this has become visible firstly through the increase in referrals – most dealerships will have an incentive in place to encourage customers to pass on their positive experience to family, friends and social networks.

‘If you’re not getting reviews you have to ask where they are going.’

Tying into this, managers within the dealerships can now pass on glowing testimonials to their sales guys – serving as a confidence boost and an effective tool for gaining referrals from the happy customer, by initiating a phone call based on their comments.

Over the course of the year at JudgeService, we have heard an increasing number of anecdotes from our clients, whereby customers have entered a showroom to ask for a salesperson by name, based on reviews they have seen online.

Embracing customer reviews also brings more repeat business, both via the sharing of reviews on social networks and among families who are looking to change multiple cars in a short time. It also enables exceptional employees to be recognised and rewarded.

It’s worth noting that all reviews are valuable — statistics from Reevoo suggest the presence of bad reviews improves conversions by 67 per cent.

It found that people who seek out and read bad reviews convert better, as the fact they are paying such close attention means they are more likely to be in purchase mode. When they see both good and bad scores 68 per cent of consumers trust reviews more, while 30 per cent suspect censorship or faked reviews when they don’t see any negative opinions on the page.

A mix of reviews boosts consumers’ trust in the opinions they are reading and this ‘negative’ feedback is crucial in improving internal process.

One guaranteed method of getting enough customer reviews to make your company more persuasive for prospective customers is to use a third-party reviews provider, such as JudgeService.

We help clients to share their reviews online and employ best practice in their showrooms by displaying reviews at every opportunity. If you’re not getting reviews from your customers – you have to ask where they are going.

Who is Rachel Sargent?

Rachel is account manager for JudgeService Research Ltd. Learn how she can help you at judgeservice. com or call 01423 225166.

It pays to know what your customers are saying about you, here’s how...

Take a positive step towards promoting positive CSI and call 01423 506272

CarDealerMag.co.uk | 69

data file.

Batchelor BACKFIRED

Au revoir, mon ami.

Citroen kills off C6

A

t the back end of 2012, a very special car quietly ended production for good.

To most people, the Citroen C6 was an oddball car which was just too eccentric to deserve their attention. But to petrolheads and car fans, the Citroen C6 was perhaps the most charismatic and beautiful saloon car made in decades.

In its seven-year life, Peugeot-Citroen (PSA) built 20,000 of the swoopy four-doors. Some say that’s the number Citroen wanted to sell each year, while in the UK dealers sold hundreds, not thousands.

Citroen finally pulled the plug on the UK market in May 2012, coming to the conclusion that adapting the car to right hand drive was just too expensive.

In its homeland, the C6 was well respected, even if it didn’t sell terribly well. But in the UK, the allure of supposedly more-premium German brands was just too great, and the buying public spent their cash on 5 Series BMWs, Audi A6s and Mercedes E-Classes instead.

Consequently, depreciation on C6s was horrendous (its three-year residual value was a shocking 30 per cent at one time); today used car dealers are flogging them for around £8k for a 2006 example with 70k miles on the clock.

The reason why the C6 didn’t appeal to UK buyers was not for its equipment levels. Top-drawer C6s came with every conceivable luxury as standard but a near-£40k price tag did its best to persuade snobby customers to spend their money with the upright Germans.

The C6 wasn’t alone in this respect. Citroen has been trying to tempt the UK motorist into French luxury cars for decades.

But it seems, like Peugeot and Renault before them, Citroen has finally thrown in the towel. Citroen points to the even more oddball DS5 as a replacement but we could hardly agree. Styling – yes; confusing powertrains – no.

The picture is grim for Citroen as a whole. Car sales in France have slumped to their lowest since 1997, with figures showing a 15 per cent drop. And taking a look at the UK – apart from the DS3, there’s very little to persuade the badgeobsessed British buyer to go with Citroen. The C1 is old; the C3 is dull; C4 is even more dull; C5 suffers the C6’s disease; while, apart from the C3 Picasso, the firm’s MPVs are lacking in the desirability stakes.

No matter – the C6 won’t be the last big Citroen. PSA is considering putting a flagship DS9 into production but it’s virtually a foregone conclusion that the UK won’t be getting it. China is the market where Peugeot-Citroen is targeting growth, not here.

‘French car sales are at their lowest since 1997 – down some 15 per cent.’

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See why dealers are choosing us.

mini test: Porsche Boxster Car dealer says HHHHH Porsche has always had a knack of making sports cars that provide a superb driving experience, and its new Boxster continues this trend beautifully. We thought the handling was absolutely faultless, managing a great balance of being

glued to the road, but remaining agile and exciting at the same time. A new more distinctive and wellappointed cabin is now

included and a range of more efficient engines complete the brilliant package. Porsche say its ‘mid-engined layout delivers renewed poise and balance combined with precise and agile handling’. We couldn’t agree more.

Price: £45,384, tested in issue 52.

Who is James Batchelor?

Car Dealer editor Batch is one of the fastestrising new talents in motoring journalism. ��| CarDealerMag.co.uk

To have your details included here call (023) 9252 2434 and ask for Suppliers Guide listings

guide

If you’re looking for a motor trade supplier you can find the details of selected companies here

Online trading

mini test: Hyundai i10

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The UK Scrappage Scheme, put on by the government back in 2008, proved rather a successful way of boosting UK car sales. Strangely, some models did better than others out of it – and Hyundai’s little i10 was a particular winner.

All sorts of things were reportedly traded in – anything from Morris Minors to Jaguar XJs – but it seems demand for the

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firm’s city car is still yet to drop.

We’re not surprised, when the i10 provides such an impressive mix of comfort, space and refinement.

Our only gripe is with the way the titchy Hyundai looks – it’s a little bland on the outside. Its sister car, the Kia Picanto, does manage to look more exciting, but isn’t quite as good to drive. Still, the i10 makes for a very impressive little package, and we have no problem recommending it.

Price: £8,345, tested in issue 52.

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CAR DEALER CLUB gives dealers of all sizes access to free legal advice from our motor trade lawyers, worth £195.

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us a cheque for £39.99 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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CarDealerMag.co.uk | 71

data file.

James Litton TRADER TALES

Nothing is wrong with a base of 50-year-olds

I

joined Mercedes in December of 2011 having seen the massive potential for the brand to overtake key German rivals Audi, and, my previous employers, BMW. No matter how strong the brand, you are only as good as your product.

I think even the most loyal suit from Milton Keynes would admit that during the late ’90s and early 2000s, cars like the first generation ML and W210 E class, were hardly the stuff of Teutonic legend.

The other car which hurt Mercedes during that period was the first generation A-Class. A baby Mercedes was a great concept, however one stuck together with angels’ kisses and cuckoo spit, did little to win new customers and certainly tested the resolve of existing ones. So fast forward to the current era, Mercedes is making some fabulous cars, the pick of which has to be the C63 Black Series which garners praise from anyone who comes into contact with it.

Sadly, not everyone has £100k to buy a car to run to the shops, so we are now in the early phase of the next generation A-Class delivery.

Clever social media campaigns and innovative television adverts have certainly generated a new audience for Mercedes, the kind of iPod playing, snowboarding, model-looking types which every manufacturer seems so desperate to attract.

We all know why, a 50-year-old will buy a car made for a 25-yearold, but a 25-year-old would not be seen dead in a car made for a 50- year-old (Hyundai i10 anyone?).

What Mercedes has to remember, though, is that these 25-year-olds grew up in a W210 E class era, so whilst these customers are having their heads turned, is it enough to prise them away from Audi who were launching the first A3 in 1996 and BMW whose ’90s stock included the great E46 and E39? I say maybe, maybe not.

We will certainly gain more share in our traditional market place as the brand recreates a fresher, more vibrant image.

There is nothing wrong with a customer base of 50-year-olds, with higher levels of disposable income, these customers are just as likely to change their car as the young aspirers on 36- month PCPs. The trick will be the next generation of Mercedes.

Capture those kids who are – right now – drooling over the C63 Black, SLS and SL65 on PlayStation and Xbox games. Do that, and we are set for life…

‘Capture those kids who are on PlayStation and Xbox right now and we are set for life.’

Traderdir Alfa Romeo

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

Audi

HWM Aston Martin

Wimbledon Carriage Company Limited

Walton & Epsom Audi

John Crisp 07885 211872

Mark Loughnane 01932 220404 07739 519306

BMW

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

Ferrari

Proven Daihatsu

HR Owen Ferrari Nick Carey

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

Bryan McMorran bryan@hwm.co.uk 01932 240611 07767 660285

www.hwm.co.uk

Craig Fenlon 01706 717700 07808 092110

Derek Bennett 020 7629 7444 07713 887 88

Keith Pattison 01428 652554 07771 547406

Charles Squirrell 07785 772876 charles.squirrell@vinesgroup. net 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

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. ��| 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

Ford

Ford

Honda

Honda

Benfield

Benfield Alfa Romeo

Lifestyle Ford

Honda

Thames Honda Group

Honda

Hyundai

Hyundai

Jaguar

Jaguar

Holdcroft Honda

Bushey Heath Hyundai

Hatfield Hyundai

Sturgess Jaguar

Lookers Park Royal

Jeep

Kia

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 Kevin Adams 07900 986095 kevin@brayleys.co.uk

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: Toyota aygo

Lotus

Maserati

Beadles Land Rover

Car dealer says HHHHH

Murray Motor Company

Meridien Modena

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

We thought the Aygo was a brilliant little car when it came along in 2005. It’s just a bit outclassed in 2013, though. Shame.

Price: £10,350, tested in issue 52.

Brandon Ware 0131 200 8888 0750 326 0186

Warren Butt 02380 283404 07860 530703

Maserati

Mazda

Mini

Mazda

Nissan

HR Owen

Lifestyle Mazda

Vines Group

Brayley Mazda

Nissan

Toyota

Volvo

General

Hyundai

Kia

Currie Motors Toyota

Sturgess Volvo

Barry Freedman

Sturgess Hyundai

Brayley Kia

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

Charles Squirrell Buying used MINIs up to 5 years old 07785 772876 charles.squirrell@vinesgroup. net

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

Kevin Adams 07900 986095 kevin@brayleys.co.uk

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

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

Kevin Adams 07900 986095 kevin@brayleys.co.uk

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 | 73

Feature.

£50 Lightning turnaround

for Ford-shaped profit

car CONTEST

I wouldn’t buy a car on a freezing cold, dark winter’s night but this didn’t put Neil and Emma off – they gave me the £900 which I was after

MIKE’S story

current tally

£0

W

ith the Merc down the road and some cash burning a hole in the Brewer wallet, it was time to put the feelers out for a new bargain buy. The answer came quicker than expected and was again Ford-shaped. Another Mondeo, but this time a 2003 2.0-litre TDCi Graphite limited edition hatchback.

Like Anne Robinson’s face it had lived a life, with various war wounds on the front bumper, a rather leggy 133,000-miles on the clock and no history. But what got me counting the notes, was the long MoT ‘til March, tax ‘til April, a recent service and my trade mate wanted just a monkey for it.

Knowing that even miley Mondeo diesels are worth a bag of sand, I trusted my mate that it drove well, paid the money and headed for home. Thankfully, a trip round the 25 revealed no horrors apart from wonky wheels at the front needing a good balance.

When I got back to Brewer Towers, I thought I’d give the Mondy a quick wash and check it over. A look in the boot revealed no spare and there was a disappointingly poor repair on the driver’s side wing. Still, I reckoned it was easily worth £900 of any punter’s money. Whilst it was clean, I took a cheeky photo and I don’t really know why, but I put it on Face Twitter. Anyway, whilst me and Mrs Brewer were out that evening, I got a message from a dealer mate Neil, who was looking for a cheap runabout for his sister.

Turns out Emma, Neil’s sister, was keen too, as the Vauxhall Signum she’d recently bought had gone bang. So they arranged to come down and ��| CarDealerMag.co.uk

look the following evening. Anyway, I wouldn’t buy a car on a freezing cold, dark winter’s night, but this didn’t put Neil and Emma off. I can’t lie, but watching Neil go over every inch of the Mondeo in car salesman mode really put me on edge – was he going to offer and would it be enough?

After a long discussion in their car, Neil offered me the £900 I wanted and asked if they could take it away the same night?

A £400 profit was exactly what I was after and this ranks as possibly one the shortest times I’ve ever owned a car. So with the Mondeo sold, what next? Matt Brown at Essex Ford had offered to find me a car before, so I gave him a bell. Just days later and as good as his word, he came up with a 2002 Vauxhall Corsa 1.2 SXi for £980, he even generously put six-months’ ticket in it.

Anyway, I picked it up just before Christmas and apart from a service it seems a goodun, with just 77,000-miles on the clock.

I’ll tell you about in the next report and will have hopefully sold it by then. This game’s not over yet, Baggott, I’m coming for you!

JAMES’S story The new editor is NOT happy with me. Not only down his to-do list. So far he’s rectified the running have I handed over the reins of this glorious motor problem and is working on a solution for the trade publication to him in super quick time, but hazard/indicator switch which, and I assume this is I’ve also failed to do absolutely anything with my a mechanic’s technical term, ‘is fooked’. He’s found £50 Car Challenge. a new water pump, sorted the misfire and has I say absolutely anything but I have done welded the exhaust. British car manufacturing a bit. If text messages to your mechanic at its best, eh? Now all that’s left to fix on current classes as a bit, then I’ve done LOADS of the C-reg motor is the emissions as it’s, tally that. Matt the Mechanic still has custody and here’s another MattTheMechanicism,

£1,325

of the classic (ahem) Metro I bought after a goading email from the one and only Big Mike. Problem was the little city car needed a bit of work. And when your mate is doing it alongside running his busy garage these things fall

‘chucking out fumes like my dog’. Needless to say, I don’t think we can sell a farting car so I’ll let him get to work on that. Granted this may give Brewer a chance to catch up but I’m so far ahead does that really matter?

the fleet.

longtermer

Fourth report: Outlander It may have been on the fleet for four months but James Batchelor hadn’t driven it. He has now...

U

p until the age of 10, I was a townie. Not any townie, mind, but someone who lived in one of the more respectable parts of Portsmouth (yes, before you ask, they do exist). But then I was I shipped out with all of my belongings to the serene Hampshire countryside and it is here I remain.

It’s the type of place where the postman knows your entire family history; buying Cheerios from the village shop is deemed a little suspicious; and where everyone drives either a Volvo V70 or a 1990 Range Rover Vogue at 17mph.

With this in mind, I’m not normally to be found maxxing out a car or threading my way through congested city streets despite my Pompey heritage. So you can image the atmosphere in the Outlander as I piloted it towards London on a cold and frosty December afternoon. On board was head of design Windy, staff writer Reay and sub editor Dave, and we were following the rest of the team in the new Porsche Panamera GTS. The Wheeler Dealer Awards was our destination and we had only three hours to get there. That’s three hours to find the place, set-up and start panicking. And have a shower. It was bound to turn unpleasant.

The first part of the journey was rather fun.

Even though we’ve had the Mitsubishi for five months now, the opportunity of driving it had passed me by.

In fact, our trip to London was the first time I’d ever driven a proper Outlander. Just the day before I had a lucky drive in the forthcoming Outlander Plug-in Hybrid but it was a mule and so it was experimental (read cobbled together if you wish).

Thanks to following the GTS and its sat-nav which decided to take a rather odd route into London to avoid the congestion charge (it failed, we drove through two sets of cameras), we found

the knowledge Model: Mitsubishi Outlander 2.2 DI-D GX4 4WD Automated Manual Price: £31,029 Engine: 2.2 litre, four-cylinder Power: 154bhp, 380Nm Max speed: 123mph MPG: (comb’d): 39.4 0-60mph: 11.1s Emissions: 189g/km Total mileage: 10,521 Costs this month: £0

This month’s highlight: Outlander can easily swallow three boxes of trophies, a grumpy sub-editor and a staff writer with snake hips

ourselves in traffic jams like you’ve never seen before. At one point, an Audi A3 even tried deliberately to drive into us. It was stressful.

Luckily, we managed to get to the awards with minutes to spare. So how was my first meeting with the Outlander?

I thoroughly enjoyed driving it. The controls have a weighty, sturdy feeling to them – quite different from any other Mitusbishi I’ve driven – and it drives in a way which you would expect from a car costing quite a chunk more money.

And the interior – despite a few cheap plastics here and there and a gearknob that looks like a sex toy – is ageing well.

The two front chairs are tremendously comfortable and can be heated – providing you can find the switch to turn them on and if you’re prepared to scrape your knuckles in the process.

Buried in the small gap between the seats and the transmission tunnel is a characteristic of many a Mitsubishi – and one which is highly annoying, Dave and Jon didn’t particularly like the journey, though. Because of the large number of trophies, we had to fold one of the seats down. Thanks to Jon’s snake-like hips, the back seat easily swallowed up the uncomfortable pair.

I’m now off to fork out for two lots of congestion charge bills.

Awaiting arrival

Ford B-Max

Peugeot 208

EVER since Batch went on the launch last year he’s been raving about the mini-MPV and its lack of B-pillars. We’re happy to report that a shiny red Titanium model with the 1.0-litre Ecoboost engine is on its way to Car Dealer’s offices.

We haven’t yet been able to play with the funky Ford and its sliding doors but can already foresee a fun six months ahead. Assuming Batch will let go of the keys, anyway.

WE weren’t quite expecting it but the 208 appeared at Car Dealer towers just as we were going to press. So, unfortunately, we’ve haven’t even got behind the wheel yet. We can tell you that it’s a three-cylinder 1.2 in Active trim with sparkling Azure Blue paint, though, and that it looks rather good indeed. This one was Baggott’s choice.

We’ll have full reports on it and the B-Max in next month’s issue.

CarDealerMag.co.uk | 75

workshops.

Motorists running risks through service skipping New SMMT polls shows 25 to 34-year-olds are failing to have basic service and repair work on their cars

Y

oungsters are more likely not to get their car serviced and maintained properly, according to new research.

Polling 2,000 motorists on attitudes towards car maintenance, the survey carried out by the SMMT found that 10 per cent of drivers aged 1824 claim their vehicle isn’t ever serviced.

This figure rises among 25 to 34-year-olds, with 12 per cent of owners failing to have even basic service and repair work carried out.

By contrast, the number of over-55s claiming never to service their car is just 2 per cent, as well as around 5 per cent of 35 to 54-year-olds.

The research highlights the dangers to which some motorists are exposing themselves, with tyres and brakes among the many safety-critical items left unchecked.

‘Most drivers are aware of the benefits of regular

servicing, but a significant number of drivers are putting themselves at greater risk of an accident, breakdown or costly repair by not taking their car to a dealership for servicing,’ said Paul Everitt, SMMT chief executive.

‘A properly maintained car is not only more fuelefficient, but will be safer and more reliable. Putting off service and repair work is a false economy with risks and costs outweighing short-term gains.

‘To stay safe and keep costs down, motorists should stick to servicing schedules and have repairs carried out promptly at a manufacturer main dealer.

There, fully trained technicians will work with the latest diagnostic equipment and fit manufacturerapproved parts. Given the speed with which vehicle systems move on these days, it’s also important that drivers check with their local main dealer to see if software upgrades are available for their model.’

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Welcome to Bosch’s new training centre Strong demand for courses leads to new multi-million pound automotive skills facility in Middlesex

B

osch has opened a new automotive training centre after demand for the firm’s training courses became too much for the existing facilities to cope with.

Opened by the Duke of York, the new multi-million pound centre is located in Uxbridge, Middlesex – not far from its previous premises in Denham, Buckinghamshire.

The last centre was oversubscribed, Bosch admits, saying that the new, larger premises will help it train 4,500 vehicle technicians a year.

The 2,000 sq m site has a mixture of classroom and workshop areas, and quadruples the capacity of the old facilities.

What’s more, Bosch says that training courses can also be delivered via the internet - thanks to the

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training centre’s ‘webinar’ facilities.

As well as providing candidates with technical skills required for working in the industry, the facility also focusses on customer service. Bosch say this ensures that those who deal with Bosch-trained technicians ‘are dealing with the most skilled and trusted people to look after their cars’.

The service training centre makes up part of Bosch’s garage service facilities, which include equipment, software and training – forming a vital part of Bosch’s Automotive Aftermarket division.

The new training facilities allow both independent and franchised garages access to the latest technology courses.

‘We are delighted to be opening this new facility in Uxbridge,’ said Robin Shaw, divisional director of Bosch Automotive Aftermarket.

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SHARES.

..in association with ASE-global.com

Another positive year for the jewel in Europe’s crown?

Last year was stellar for some and more robust gains can be expected

A HOST OF MANUFACTURERS ENJOY A SUCCESSFUL 2012

W

hen we look back on 2012 we see a stellar year for the vast majority of the UK-listed motor retail stocks.

Entering the year, the majority of people were nervous about what lay ahead and this was reflected in underlying uncertainty over share prices.

As we closed the year we saw over two million vehicles registered and, while the majority of the increase was down to supply push rather than demand pull, selling more cars is a profitable activity for the majority of dealers.

It also helps stabilise the medium-term service income with the vehicle parc finally increasing.

The UK is certainly the jewel within Europe for vehicle registrations in 2012 and this is reflected in the share price movements for the year.

Top of the class for 2012 was Pendragon, showing a share price increase over the year of over 120 per cent. Partially this increase reflects the low base level at which the company arrived

‘Selling more cars is a profitable activity for the majority of dealers.’ into the year. Indeed, the share is still only trading at 18p – a fraction of its prerecession high.

The company’s refinancing negotiations undertaken in 2009, when the share reached its low point, are still feeding their way through the system with additional shares issued in December, however the positive momentum is more than sufficient to enable the share price to continue increasing.

There was also a strong performance from Inchcape, with a share price increase of 50 per cent during 2012. Inchcape is benefiting from a strong UK market performance allied to growth in the overseas markets where they have a distribution or retail presence. Their portfolio also largely steers clear of the markets impacted most heavily by the continued recession.

There were also strong share price gains during 2012 for both Lookers and Vertu, with shares increasing by over 40 per cent during the year.

Vertu remained the most active acquirer during 2012, a trend which has continued since the

Kia is all set to relocate to a larger head office after setting a new sales record in 2012.

WITH the sales figures from the whole of 2012 now in, it seems manufacturers aren’t afraid to boast about their gains over the last 12 months – with many manufacturers jumping as much as 20 per cent in registrations across the year.

Kia is a manufacturer that did particularly well – with registrations up by 24 per cent against 2011. That’s helped push the Korean firm’s market share up to 3.24 per cent, and they’re rightly pleased. So much has Kia grown that the UK arm of the company has had to move offices, having outgrown their previous premises.

In fact, the Koreans seem to be on a bit of a roll as the new year begins. Kia’s sister firm Hyundai has also experienced a boom – now commanding 3.63 per cent of the market. For the first time, Hyundai has made it into the top 10 best selling manufacturers in the UK, marking the first time a Korean firm has been a best seller in this country. So popular is Hyundai in Britain that we now represent its second most popular market. year end with the purchase of more Vauxhall dealerships.

Allied to a bullish trading statement over the likely full year results, Vertu should see further gains during 2013, providing they manage successfully to apply their turnround model to the businesses acquired.

As expected given the limited liquidity of the stock, Caffyns remained largely static during the year. There was, however, a small decrease in the share price of H.R. Owen, reflecting a year of further change within the business with Joe Doyle coming in at the helm. Stability in management

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 ��| CarDealerMag.co.uk

Spanish maker Seat has also performed admirably. 2012 marks the firm’s most successful year ever, with record-breaking sales and market share. It now holds 1.9 per cent of the market, up from 1.86. Since 2008, the firm says it’s had a series of unbroken year-onyear sales increases, and 2012 continued that performance.

Premium car maker BMW has also performed well. It achieved its highest ever sales results in 2012, with a total of 1,845,000 BMW, Mini and Rolls-Royces delivered worldwide. Rolls-Royce in particular did very well - selling 3,575 cars, the highest ever in the company’s 108-year history.

Smaller manufacturers, meanwhile, did well too. Suzuki’s registrations in the UK were up 22.66 per cent – now nearly 25,000.

SsangYong managed an amazing jump – its registrations up by an incredible 351 per cent, selling 875 cars across the year through its ever increasing dealer network. In terms of overall sales it was the best year for Nissan since 2003. and renewed motor retail focus could see the business performing well in 2013.

The only share to come under pressure during the year was Cambria, which ended the year a third down.

This can largely be put down to a change in stance of the company’s original venture capitalist backer, Promethean, who made the decision to exit during the year.

It will be interesting to see how the business performs as we go through 2013 and whether it matches the strong performance expected from a number of its peers.



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Marshall Motor Group is part of a unique family owned group of companies with a turnover approaching £1bn (35% growth), with interests also in the aerospace and ground systems sectors. We celebrated our Centenary in 2009 and we are still growing in size.

At Marshall, wherever we work, we all play a big part in ensuring that our sales and profit targets are met, not least by providing our customers with a fantastic level of service which means identifying their needs, and responding to them quickly.

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With our strong customer centric and people focus it is not surprising that we have received some enviable accolades including "Dealer Group of the Year" and being shortlisted for "Employer of the Year" and we are committed to building on our achievements to date.

We are looking for talented automotive professionals to join our team. If this is you and you share our passion for being the best then you can look forward to a great benefits package, the chance to build on your skills and experience with ongoing training, plus all the encouragement and support you need to develop a rewarding, long-term career with us.

Please go to

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WE’RE RECRUITING...

PETER VARDY IS NOW RECRUITING IN MANY AREAS FOR ALL OF OUR DEALERSHIPS. We’re looking for people with drive, passion and retail sales or customer experience. You don’t need a motor industry background, just the desire to succeed. We’ll give you all the world class training you need... plus a great financial package, and every Sunday off. If you want the chance to build a career with Scotland fastest growing motor retail group then apply today.

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New Year…

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Same standards of excellence The demands of the motor industry may have changed over the years. But our dedication to go the extra mile, ensuring we provide the best possible service to our candidates and clients, has remained consistent. This has kept us at the forefront of Automotive Recruitment for the last 25 years.

Contact us today – speak to one of our industry professionals to see how we can contribute to your future success.

Tel: 0845 644 3003 Email: info@jgauk.com Web: www.jgauk.com THE LOCAL, REGIONAL, NATIONAL AUTOMOTIVE RECRUITERS

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Follow JGA on…

Car dealer says HHHHH Back in issue 52 we gave VW’s tiny but strangely named Up the crown of best city car – and it’s easy to see why. Not only does it look great – interesting and funky without being overly cute – but it’s a really well put together package. For starters we thought it was incredibly refined for such a small car and the quality of the interior is second to none in this segment.

The 60bhp engine we drove was punchy and handling is kept in check with low body roll and accurate steering. Our only gripe was the list price –

nearly £10,000 on our Move Up BlueMotion test car. Instead, we’d be tempted to go for one of its twins – the Seat Mii or Skoda Citigo – which are just a teensy bit cheaper.

Price: £9,440, tested in Issue 52.

Get ready for better recruitment.

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data fiLe.

Strong motivation is a key ingredient to crossing the line first T

he stage was set at the 1980 Moscow Olympics for Sebastian Coe as he went into the 800 metres final as the fastest man on paper, and the odds-on favourite to be crowned the Olympic champion.

But things didn’t go to plan – he finished second behind Steve Ovett.

In most scenarios this would be the end of everything that had been worked for and the chance to rectify the situation would be in another country, four years into the future, if indeed at all!

Fortunately for Sebastian Coe, the wait was only four days until the 1500 metre final. In the short time between the two races he analysed what went wrong and increased his motivation to enable him to cross the finish line to capture the Gold medal.

Following the successful impact the 2012 Olympic Games has had on the UK’s third-quarter GDP results, the race that is 2013 is now under way. It will bring many busy times and chances to us all.

The Olympics may be well and truly behind us, including their impact, but that doesn’t mean that we can’t analyse the good and the bad to achieve a better performance.

The news headlines continue to report mixed results for businesses and the economy, and one example where the results continue to be surprisingly bad are those of some high-street retailers and, in particular, those whose business models have not responded to the changing needs and behaviours of the consumer.

Back in 2008, Woolworths was one of the first examples of a retail chain going to the wall, which I am sure came as quite a surprise to a lot of people at the

Jonathan

Such TIME IS MONEY

time. And since that period there have been others, such as Peacocks entering administration just over 12 months ago and Comet, the long-serving electrical store, filing for the same in November.

HMV has also witnessed a decrease in profits, stores closing and the subsequent restructuring of finances by its bank.

So what is the difference between running a successful race or failing and having to wait for another chance to compete, if you are lucky enough to be offered one?

Strong motivation is a key ingredient for success.

Having the ultimate desire and discipline to do whatever is required to make sure that you achieve the desired

‘Ensure you are absolutely ready to take advantage of any opportunities.’ outcome, will go a long way.

Learning from past mistakes is another key principle in determining your success.

Reviewing previous performances and utilising the information to amend certain areas with a view to improving is critical.

But the biggest and most important factor which can guarantee you take your chance when it arrives, is ensuring you are absolutely ready to take advantage of any opportunities.

Lord Coe, in his London 2012 closing ceremony speech, summed it up quite nicely: ‘When our time came, Britain, we did it right.’

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

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Day in the life of a dealership coffee machine

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