New mazda 6
SKODA Octavia
Crucial car put to the test P32
Business Publication of the Year
Posh new hatch reviewed P30
Issue 60 | March 2013 | CarDealerMag.co.uk | £3.50
Suited booted
DRIVEN: BMW 3 SERIES, MERCEDES C-CLASS, HONDA ACCORD, VW PASSAT & SEAT EXEO
$BS%FBMFS
POWER IN ASSOCIATION WITH
GEN-3 GLASSCOAT
AWARDS LAUNCH
Our search for the best car maker and supplier is back! P10
daily grind
A day in the life of a dealership coffee machine P44
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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 Amy Hobbs amy@blackballmedia.co.uk Twitter: @CarDealerAmy CAR DEALER CLUB ADMINISTRATOR Natasha Smith natasha@blackballmedia.co.uk Twitter: @CarDealerTash
SUITS MANAGING DIRECTOR James Baggott james@blackballmedia.co.uk Twitter: @CarDealerEd OPERATIONS DIRECTOR Andy Entwistle andy@blackballmedia.co.uk Twitter: @CarDealerAndy
Contributors
Mike Jones, James Litton, Tim Naylor, Tim Heavisides, Richard Lawton, Jonathan Such, Dave Brown, Mal Hay, Leon Poultney and Rebecca Chaplin.
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month I was lucky Welcome. This enough to try out Skoda’s
eagerly awaited new Octavia. But before I could relax in the warm Portuguese sun and drive the clever Czech on some super smooth roads, I had to make the journey to the airport by coach. And I received the worst customer service I have ever had the misfortune of encountering. I did what anyone with very little patience and 1950s sensibilities would do – complained most loudly to the company, and asked to fill out a customer satisfaction survey. There’s something oddly therapeutic about venting your frustration, in the hope senior management will listen. And that is exactly what Car Dealer Power allows you to do – not complain, as such, but let your views be heard. Once again we’re asking you for your thoughts on the best manufacturers to represent and the suppliers you like to do business with. And these companies do listen. Unlike this coach company – which I expect I’ll never hear from again – manufacturers and suppliers do take notice. Last year we received a deluge of phone calls from manufacturer press offices asking why they had finished so low. And the reason why they called was that people higher up in the company were unhappy. Like last year, Car Dealer Power 2013 – in association with GEN-3 Glasscoat – is giving equal focus to suppliers. It’s these people who can make a real difference to a car dealer’s business, and our Power gongs allow you to give them the recognition they deserve. The categories are split up into different specialisms so it gives the smaller firms who often don’t get a mention, the chance to shine. And as an extra incentive to get you voting, we’ve managed to get together a great range of prizes which we will be giving away to random respondents. It’s an eclectic mix – from a BMW Chrono watch to a half-day testing your mettle in some of Land Rover’s finest off-road machinery.
There’s also a brace of motoring-themed gifts too! To be in with a chance of winning a prize, just give us your mobile number so we can let you know you’ve won. And do remember Car Dealer Power is 100 per cent confidential – so don’t worry about telling us what you really think. Turn to p10 for more details or go to cardealerpower.com now to fill out the survey. BUSINESS SALOONS YOU’LL have no idea of the pain head of design Windy and I had to endure to bring you this month’s cover shot. It was taken on the top of Portsdown Hill in Portsmouth when it was minus one degree and blowing a force nine gale. I even had to use a copy of Issue 59 as a shield to stop rain hitting the lens. That’s not to mention the charade of us being watched by a young couple in a T-reg VW Polo with steamed up windows. We reckoned the Polo was rocking on its suspension because of the heavy wind, obviously... Turn to page 36 to see which business saloon wins our shoot-out. DAILY GRIND EVER wondered what your dealership’s coffee machine is thinking? Well, we have got a very humourous fly-on-thewall feature written by a Kenco ‘Simples’ RB482 who gives us the inside story of life in dealership – see page 44. AND FINALLY... IT GIVES me great pleasure to welcome Amy Hobbs to the team; meanwhile it annoys to me to announce James Baggott is back. This time as a columnist – I am sorry.
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
Celebrating 25 years as the UK’s No.1 supplier of Paint and Fabric Protection
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34
BUSINESS CLASS
We don smart attire and test executive saloons
INSIDE. ISSUE 60 I MARCH 2013
Dashboard
Letters
Car Dealer Conference Car Dealer Power launch Nismo’s future is looking hot That Was The Month Finance
10
34
AWARDS LAUNCH The awards which put you in the driving seat return – and we’ve got some tasty prizes for you
Citroen lifts the lid on its DS3 Cabrio – and we’ve driven it
Big Mike Baggott
Car Dealer Club
Forecourt
Skoda Octavia Mazda 6
Nissan Juke Nismo Citroen DS3 Cabrio
$BS%FBMFS
POWER ITH
NW IN ASSOCIATIO
SCOAT GEN-3 GLAS
44 A day in the life of a dealership coffee machine
30
Skoda’s posh new Octavia hatchback put to the test
36 A day in the life of a coffee machine 44 Focus on: Tracker 48 Focus on: BuyYourCar 50 Success Stories 53 Business Class
Data File
The Statistics Commercials Auctions Trader Talk
Driving Values CSI Files Trader Directory with Litton Long Termer Report – B-Max Long Termer Report – 208
Within hours of sending Issue 59 off to the printers, the editor was flying out to Portugal to drive the new Skoda Octavia. It seemed like a great idea – that was until he was handed the keys to a white one, and wasn’t sure which one was his. Cue holding the remote aloft, pressing the unlock button several time just like a madman. He did eventually find his car.
30 32 34 34
Features
Suppliers Guide &
a month in A picture...
07 09 10 16 20 22 25 27 28
Long Termer Report – X-Trail Long Termer Report – Outlander Workshops Shares Time is Money
70 72 74 75 76 77 78 80 81 82 83 85 86 90
CarDealerMag.co.uk | 05
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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
£1,200 handover? You’re joking! I was shocked when I read your story online about the new Range Rover handover centre. Is this marketing gone mad? Do people actually want to pay £1,200 to have images projected on to their car? This sounds more like a theme park to me – and a very expensive one at that! I love Range Rovers and I think Land Rover is a great British brand but for me this is just going too far. I would suggest to anyone who thinks this is a good idea that they book themselves into a boutique hotel for a night and buy an off-road experience day and save themselves at least £700! Luke McMellon via email
Softening the blow
I found the information from Lawgistics in the last edition invaluable! I have been lucky over my many years of trading to only have a few problems with faulty parts fitted to used cars and I always ended up shelling out to fix the problem. My theory is the customer is always right and I want them to go away with what they paid for. But last week a customer came in with a faulty part and although I did pay for a replacement I was able to find out that it was within warranty and claim the money back, which softened the blow a bit. Chris Hutchins via email
Minis make me smile
Big Mike’s feature last week was fantastic and made me reminisce about cars I’ve sold over the years. The two which stood out were the Mini and VW Golf Mk 2 – I have to agree with Mike completely on both of those. Minis are so much fun and you can’t help but smile whenever you drive them, it’s a shame I get them in so rarely nowadays. The Golf is much the same, a car which brings out the boy racer in you. But yes, there is
twitter comments
Badge of honour Further on in this issue, you’ll see we have a new columnist. He’s James Baggott – you may or may not know of him. To help him write his first column he tweeted about his annoyance of car badges and stickers – turn to p27 for his drivel. But in the meantime, here are some of Twitter’s suggestions...
CAZ, GAZ, DAZ etc; plates on knackered exec cars; dealers who put stickers on plates. Fake German plates. @Sprock_N ‘Princess on board’ stickers wind me up #chavs @gunner712004 Subie I worked for, years ago, had ‘My Other Car’s a Piece of S**t Too’ sticker on his van. Ironically it was actually a 911 Turbo @Regfinder
Actually, few things are worse than genuine model badges but with wrong/varied spacing between characters. Aargh!! @keithwrjones
‘M’ or ‘AMG’ badges on diesels. @The_Marques_Man
Rows of cuddly toys!!
something about the CL and GL editions and their quirky ’80s shape. Gareth Parker via email
Snip off the dingly danglies
Does anyone else want those dingly-dangly things people hang off their rear-view mirrors banned? In my experience, they are an infallible sign of a bad driver. Why does anyone want something swinging about in front of their eyes impairing their vision as they steer a metal box at 70mph towards oncoming traffic? Stan Harrison via email
@ECRTraining
The industry needs women
I was saddened to see only one woman – Citroen’s Linda Jackson – among last month’s 15 Automative Influencers in Car Dealer. It seems extraordinary when 16.3 million women hold driving licences, compared with 19 million men, that such a tiny percentage of key people in the industry are female. Women buyers are a huge part of the market and manufacturers and dealers need more women in powerful and well-remunerated positions in order to give them a chance of maximising sales. In the US there are more women drivers than men. Dana Jones via email
Midflight ’plane refuelling procedure goes badly wrong ONE summer afternoon, a guy called about a Mondeo we then had. A year-old TDCi with all the gadgets, just what he wanted. He was at home looking after his sick kid, so I said I’d bring it to him for a viewing – extra mile and all that. He was only three junctions down the M25, so not far. I turned on to the motorway, and before I knew it, it was stopped for miles. It was a hot day so I had the air con on full and I was drinking water like a fish. Half an hour passed and I still hadn’t got out of first gear.
Another half hour passed and I’ve moved about 200 yards. By now, I’d had about a litre of water and desperately needed to pee. The bottle of water I had was now empty. ‘I’ll just go in that’, I thought. I hung on for another 15 minutes while I built up the courage. By now I was past caring. I grabbed the bottle, and performed some kind of midflight aeroplane refuelling procedure. No sooner had I started to pee, the traffic started moving. I couldn’t really move my legs in the position
My
CONFESSION
I was in and I slipped off the clutch. Kangarooing down the road, the bottle slipped from my hand and my trousers pushed the ‘fuel nozzle’ to an upright position, showering myself, the dash and the headlining. The bottle emptied in the footwell, got stuck under the brake and I ploughed straight into the car in front. Covered in pee and trousers undone, I sat there and waited for the earth to swallow me up. The guy never got to see the Mondeo, I had to pay £100 for the valet, plus £250 excess for the crash and all in all it was a bad, bad day. CarDealerMag.co.uk | 07
Know exactly what your customers want before they ask
Does your used car stock match what consumers are looking for in your area? Is your stock priced to maximise response? Do you know if you’re paying the right price when sourcing your stock? i-Control has all the answers, and our market data and metrics will boost stock turn and profitability. To see how i-Control can generate an extra £60-80k gross profit per site per year and to book a completely free car-by-car health check of your current forecourt stock, visit deltapoint.co.uk/i-control or call 08433 089 008. 08 | CarDealerMag.co.uk
DASHBOARD.
Nissan shows off mean 370Z Nismo sports car bit.ly/370ZNismo
Learn new business Heavisides ideas - for FREE!
warranty wonders
Strong profits point to more good news...
A
Car Dealer Conference looks set to be great
N
o one likes to take time out of the office but we like to think it’s worth it if you know you’re going to learn new ideas. And that’s exactly what’s awaiting you at the 2013 Car Dealer Conference. Held in association with Pro-Align, the FREE to attend event will be held at the Heritage Motor Centre, Gaydon, on May 3. The day will be jam-packed with the very best ideas on how to make more money – and we’re sure it’s an event you won’t want to miss! You’ll be hearing from 10 key speakers on the day who’ll be discussing the best ways for dealers to make more profit from their businesses, with a focus on lead generation, maximising sales and F&I. Headlining the conference will be the wheel alignment specialists Pro-Align who’ll also be holding a live demonstration of their wheel alignment products. Meanwhile the Heritage Motor Centre’s exhibition hall will be full to bursting point with the Car Dealer Conference Expo. Here around 20 exhibitors from all areas of the
trade and motor industry will be on hand to chat to about the products and services they can offer to dealers. But the really big news about the 2013 Car Dealer Conference is the live Q&A session. Chaired by Car Dealer’s editor, the session will feature leading figures from the automotive industry – and if you’ve got a burning issue you want to discuss, it’s the perfect opportunity to – BBC Question Time style! You could also be in with a chance of winning an iPad! A draw will follow the Q&A session – so make sure you pick up your raffle ticket on the door! And if you’re a car fan – and why wouldn’t you be? – you’re in luck. After the conference has finished (at around 3pm), you’ll be more than welcome to explore the automotive delights downstairs in the Heritage Motor Centre. All of these for FREE? It’s a great chance to learn new things and we’re sure you won’t want to miss out. Registration for the event is OPEN NOW. To book your FREE ticket, email the editor at james.batchelor@blackballmedia.co.uk and a member of the Car Dealer team will confirm your space. Joining instructions will be sent out nearer the time.
A WORD FROM HEADLINE SPONSOR PRO-ALIGN THE theme of this year’s Car Dealer conference ‘Make More Profit’ echoes exactly the opportunity available to dealerships by offering our Professional Four Wheel Alignment. With a profit margin of more than 80 per cent, four wheel alignment is one of the most profitable of today’s aftersales services. Pro-Align will be offering dealers an
insight into the true business opportunity at the conference, plus an update on innovative complete wheel servicing technology, equipment and servicing techniques. There will also be a chance to view the very latest alignment and road force systems which are already helping dealers to unlock potential business and discover profitable rewards.
fter the announcement last month that the new car market nudged beyond two million units in 2012, there is more good news in January that dealer profits seem to be heading in a similar direction when compared to the previous year. Audit company ASE reported that the average retailer made a slim profit towards the end of 2012, which is in stark contrast to the more substantial losses made in 2011. More encouraging still is that the trend seems to be upwards and that the used car market is helping to push that figure further. It’s a great step in the right direction and another reason to be cheerful ahead of the busy March period; not only is the revitalised market delivering more sales, but retailers are seemingly able to make more margin from the deals they complete. I’d like to think that add-on products are helping to improve those profits and returns, too. With more new and used car sales comes an increased opportunity to sell finance, GAP insurance, extended warranty, cosmetic warranty and service plans; it’s not just about selling the car – it’s about helping customers with a complete motoring solution. Of course, most add-on products help profitability through retained commission, but products that bring the customer back to the dealership for service or repair work help deliver margin well beyond the initial purchase. When those products are aligned with sales and pay plans, they can play a powerful role in a dealership’s health-check. If we’ve learned anything since the credit crunch it’s that a healthy balance sheet depends on as diversified a mix of business as possible – car sales are obviously where most of the emphasis is placed and dealers who support that with a wider proposition have been able to make further gains over the past few years. Reports that profit is slowly improving show that the market adapted well to tough trading conditions – now that volume seems to be picking back up, here’s hoping that it helps propel margins further and we can look forward to more good news to come.
‘It’s not just selling cars – it’s about a complete motoring solution.’
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
SURVEY.
Speak out and let your views be heard Our Car Dealer Power survey is back and we need your help to find the best suppliers and car manufacturer to represent – and we’ve got bribes to encourage you!
T
he Car Dealer Power survey is back – and we think it’s bigger and better than ever! The survey which lets you tell it like it is returns – and to twist your arm to fill it in, we’ve got some cracking bribes. Now in its fourth year, Car Dealer Power firmly puts you, the dealers, in the driving seat and gives you the chance to tell manufacturers and suppliers exactly what it’s like working with them. It’s your opportunity to recognise the very best companies that help you do business. Car Dealer Power – this year supported by GEN-3 Glasscoat – is the survey which aims to find the best car manufacturer in the UK to represent by quizzing its dealers about how it performs on a variety of levels. Last year, Hyundai just pipped Suzuki and Volkswagen for the top gong. Suppliers feature just as prominently as the manufacturers, and for 2013 you’ll see there’s ample opportunity to name the suppliers you like to do business with. Like last year, we’re giving even more prominence to the suppliers that support dealers on a daily basis. We’ve split a number of the categories up to give the smaller firms more chance of recognition in these important awards. We want you to rate the firms you use in all areas of your business so we can celebrate the very best – and invite them to our special Car Dealer Power Awards night on June 12. We’ve also managed to secure a number of prizes which will be handed out to random respondents to the survey (see right).
WHY SHOULD I FILL IT IN?
WELL, not only do you get the chance to share your views, but there are prizes too! Car Dealer Power is 100 per cent confidential
Last year’s winner, Hyundai, will be keen to hang on to their gong 10 || CarDealerMag.co.uk CarDealerMag.co.uk 10
– we don’t even ask for your name, only your mobile phone number so we can let you know if you’ve won a prize. We want to know the good and bad things about what it’s like to represent your car manufacturer, so please feel free to give the most honest opinions possible. Car makers take our survey very seriously and a number have implemented changes to their processes directly off the back of comments made in previous years’ surveys. Filling in Car Dealer Power shouldn’t take longer than a few minutes. You can do it on the following pages and send them back to us (photocopies are fine). Easier still is visiting our online version at CarDealerPower.com.
Awards Night
Just like last year, we will be holding an awards night for the winners of Car Dealer Power. Once voting is closed we’ll notify the lucky companies who need to book a place at our event. Winners will receive access to Car Dealer Power awards artwork, will bag a stunning trophy to take away with them, and will receive fantastic publicity in Car Dealer Magazine and on our website. Just take a look at how many advertisers are using their winners’ logos in our magazines… and others! One small tip though – we advise all suppliers and car manufacturers to ask their clients and dealers to fill in the survey. A friendly nudge towards the online survey can work wonders...
THE BRIBES
Fill in the survey... and you could win!
Every respondent who gives their mobile number will be entered into our prize draw to win one of these fantastic prizes. BMW SPORT CHRONO WATCH How about checking the time with this German masterpiece? Worth £208, it’s a stunner! LAND ROVER EXPERIENCE Fancy a half-day full of mudplugging? You’ll learn how to tackle rivers and ditches! SIGNED PORSCHE MODEL Here’s a 1:43 scale model of a Porsche 911 GT3 R signed by racer Peter Dumbreck. BEAULIEU TICKETS Entry for two adults & three kids/one adult & four kids. Top attractions include Bond in Motion. CITROEN GOODY BAG Are you a Citroen fan? We’ve got a Seb Loeb cap, 90 years of Citroen book & model cars. LE MANS BOOK 2013 is the 90th anniversary of the 24-hour race. Celebrate it with this ‘Panoramic’ book worth £35. HONDA BTCC TICKETS A pair of entry tickets to a BTCC round of your choice courtesy of Honda Yuasa Racing. Thanks to: BMW, bmw.co.uk; Land Rover, landrover. co.uk; Propel Technology, propel-technology. com; Beaulieu, beaulieu.co.uk; Citroen, citroen. co.uk; Veloce, veloce.co.uk; Honda, honda. co.uk.
Car Dealer Power in association with..
$BS%FBMFS
POWER IN ASSOCIATION WITH
GEN-3 GLASSCOAT
The easiest way to fill in the survey is online at CarDealerPower.com
Your Mobile Number (needed to be entered into prize draw)………………….......................................... CAR MANUFACTURER 1. Which car manufacturer do you represent? If it’s more than one, please fill in the survey again. You can do this online at CarDealerPower.com Abarth Alfa Romeo Aston Martin Audi Bentley BMW Chevrolet Chrysler Citroen Corvette Ferrari Fiat Ford Honda Hyundai Infiniti Isuzu Jaguar Jeep Kia Land Rover Lexus Lotus Mazda Mercedes-Benz MG Mini Mitsubishi Nissan Perodua Peugeot Porsche Proton Renault Seat Skoda Smart SsangYong Subaru Suzuki Toyota Vauxhall Volkswagen Volvo Other (please name) 2. How do you rate your manufacturer with regards to its finance offers? Poor Average Good Excellent Faultless Comments: ............................................................. ...................................................................................... ...................................................................................... ......................................................................................
3. How do you rate the warranty your manufacturer offers? Does it cover everything it needs to and is it easy to administer? Poor Average Good Excellent Faultless Comments: ............................................................. ...................................................................................... ...................................................................................... 4. How would you rate your car manufacturer on its aftersales support? Poor Average Good Excellent Faultless Comments: ............................................................. ...................................................................................... ...................................................................................... ...................................................................................... 5. How do you rate your car manufacturer’s marketing overall? Consider the support it offers you for advertising, the offers it comes up with and the marketing schemes it has developed. Poor Average Good Excellent Faultless Comments: ............................................................. ...................................................................................... ...................................................................................... ......................................................................................
8. How good is your manufacturer with regards to the internet? Consider the support it gives your online offering, how leads are fed down to you and the quality of its website. Poor Average Good Excellent Faultless Comments: ............................................................. ...................................................................................... ...................................................................................... ...................................................................................... 9. How do you rate the supply of new cars from your manufacturer? Poor Average Good Excellent Faultless Comments: ............................................................. ...................................................................................... ...................................................................................... ...................................................................................... 10. How well does it manage used cars? Consider how it manages stock and its used car scheme. Poor Average Good Excellent Faultless Comments: ............................................................. ...................................................................................... ...................................................................................... ......................................................................................
6. How do you rate your car manufacturer’s brand awareness? Poor Average Good Excellent Faultless Comments: ............................................................. ...................................................................................... ......................................................................................
11. How do you rate your manufacturer’s forward planning? Poor Average Good Excellent Faultless Comments: ............................................................. ...................................................................................... ...................................................................................... ......................................................................................
7. How accessible is your manufacturer? Can you get hold of the right people at head office? Do they listen to what you have to say? Poor Average Good Excellent Faultless Comments: ............................................................. ...................................................................................... ......................................................................................
12. How do you rate the requirements your manufacturer imposes on you? Poor Average Good Excellent Faultless Comments: ............................................................. ...................................................................................... ...................................................................................... ...................................................................................... ......................................................................................
13. What do you think of the bonus structure put in place by your car manufacturer? Poor Average Good Excellent Faultless Comments: ............................................................. ...................................................................................... ...................................................................................... ...................................................................................... 14. Finally, how do you rate the return on investment from your manufacturer? Poor Average Good Excellent Faultless Comments: ............................................................. ...................................................................................... ...................................................................................... ...................................................................................... 15. Which car – from any manufacturer – do you think deserve the title of the Car Dealer Power Car of the Year? ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... 16. Which manufacturer do you think has come up with an initiative this year that deserves recognition? ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... 17. Which manufacturer has produced the best marketing scheme this year? ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... ...................................................................................... If you represent more than one manufacturer you can fill in this survey again online by visiting CarDealerPower. com, photocopy these pages or email james.batchelor@blackballmedia. co.uk for a copy. All requests will be treated confidentially. Any comments you wish to make will be most welcome. These may be used in the magazine but will be attributed anonymously.
CarDealerMag.co.uk | 11
SURVEY. The SUPPLIERS
This section is about finding the best suppliers. The winners will not be decided solely by being the most popular, but by how good they are at providing you with a service. We’ll be naming a winner for each category and two highly commended places which will be announced at the Car Dealer Power Awards ceremony. For each category, first tell us who you use, then how you rate their service and finally add any comments you have. 1. Warranty Supplier Who do you use?................................................................................ How do you rate the service in the following categories? Poor Average Good Excellent Service Product Website Admin Price Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... 2. GAP Supplier Who do you use?................................................................................ How do you rate the service in the following categories? Poor Average Good Excellent Service Product Website Admin Price Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... 3. Website Design For Franchised Dealers Who do you use?................................................................................ How do you rate the service in the following categories? Poor Average Good Excellent Service Product Website Admin Price Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... 4. Website Design For Independents Who do you use?................................................................................ How do you rate the service in the following categories? Poor Average Good Excellent Service Product Website Admin Price Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... 5. Search Optimisation Services Who do you use?................................................................................ How do you rate the service in the following categories? Poor Average Good Excellent Service Product Website Admin Price Comments:.............................................................................................. ...................................................................................................................... ......................................................................................................................
12 | CarDealerMag.co.uk
6. Dealer Marketing Agency (advert design, concepts) Who do you use?................................................................................ How do you rate the service in the following categories? Poor Average Good Excellent Service Product Website Admin Price Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................
11. Online Advertising (New Cars) Who do you use?................................................................................ How do you rate the service in the following categories? Poor Average Good Excellent Service Product Website Admin Price Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................
7. Prime Finance Who do you use?................................................................................ How do you rate the service in the following categories? Poor Average Good Excellent Service Product Website Admin Price Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................
12. Online Advertising (Used Cars) Who do you use?................................................................................ How do you rate the service in the following categories? Poor Average Good Excellent Service Product Website Admin Price Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................
8. Sub-Prime Finance Who do you use?................................................................................ How do you rate the service in the following categories? Poor Average Good Excellent Service Product Website Admin Price Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................
13. Most Dealer Friendly Online Advertising Portal Who do you use?................................................................................ How do you rate the service in the following categories? Poor Average Good Excellent Service Product Website Admin Price Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................
9. Best Finance Services & Tools Who do you use?................................................................................ How do you rate the service in the following categories? Poor Average Good Excellent Service Product Website Admin Price Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................
14. Specialist Online Ad Site (contract hire, leasing, etc) Who do you use?................................................................................ How do you rate the service in the following categories? Poor Average Good Excellent Service Product Website Admin Price Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................
10. Best Finance Marketing Initiative Who do you use?................................................................................ How do you rate the service in the following categories? Poor Average Good Excellent Service Product Website Admin Price Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................
15. Used Car Valuations Services Who do you use?................................................................................ How do you rate the service in the following categories? Poor Average Good Excellent Service Product Website Admin Price Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................
Car Dealer Power in association with.. 16. Provenance Checks Who do you use?................................................................................ How do you rate the service in the following categories? Poor Average Good Excellent Service Product Website Admin Price Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................
21. Online Remarketing Who do you use?................................................................................ How do you rate the service in the following categories? Poor Average Good Excellent Service Product Website Admin Price Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................
17. Lubricants Who do you use?................................................................................ How do you rate the service in the following categories? Poor Average Good Excellent Service Product Website Admin Price Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................
22. Physical Auctions Who do you use?................................................................................ How do you rate the service in the following categories? Poor Average Good Excellent Service Product Website Admin Price Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................
18. Recruitment Agency Who do you use?................................................................................ How do you rate the service in the following categories? Poor Average Good Excellent Service Product Website Admin Price Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................
23. Best Trade-to-Trade Lead Generation (leads for disposal of your trade cars) Who do you use?................................................................................ How do you rate the service in the following categories? Poor Average Good Excellent Service Product Website Admin Price Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ......................................................................................................................
19. Paint Protection Who do you use?................................................................................ How do you rate the service in the following categories? Poor Average Good Excellent Service Product Website Admin Price Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................
24. Best Consumer Lead Generation (leads for people to sell cars to) Who do you use?................................................................................ How do you rate the service in the following categories? Poor Average Good Excellent Service Product Website Admin Price Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ......................................................................................................................
20. Training Company Who do you use?................................................................................ How do you rate the service in the following categories? Poor Average Good Excellent Service Product Website Admin Price Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................
25. Dealer Management Product (DMS systems) Who do you use?................................................................................ How do you rate the service in the following categories? Poor Average Good Excellent Service Product Website Admin Price Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................
26. Product Innovation of the Year Who do you use?................................................................................ How do you rate the service in the following categories? Poor Average Good Excellent Service Product Website Admin Price Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... .................................................................................................................... ....................................................................................................................... ....................................................................................................................... 27. Supplier Newcomer of the Year Who do you use?................................................................................ How do you rate the service in the following categories? Poor Average Good Excellent Service Product Website Admin Price Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... 28. The Extra Mile Award (The company that has gone the extra mile for you somehow this year) Who do you use?................................................................................ How do you rate the service in the following categories? Poor Average Good Excellent Service Product Website Admin Price Comments:.............................................................................................. ...................................................................................................................... ...................................................................................................................... ...................................................................................................................... ......................................................................................................................
$BS%FBMFS
POWER IN ASSOCIATION WITH
GEN-3 GLASSCOAT
If you represent more than one manufacturer you can fill in this survey again online by visiting CarDealerPower.com, photocopy these pages or email james.batchelor@blackballmedia. co.uk for a copy. All requests will be treated confidentially. Any comments you wish to make will be most welcome. These may be used in the magazine but will be attributed anonymously.
Please send completed surveys to: Car Dealer Mag, Endeavour Quay, Mumby Road, Gosport, PO12 1AH
CarDealerMag.co.uk | 13
14 | CarDealerMag.co.uk
DASHBOARD.
BCA: Commercial vehicle values stay strong bit.ly/CVstrong
Board aims to chalk up 7,000 sales
Dorchester salesman reveals amazing history of selling cars
Bill Board
A
car salesman in Dorset is aiming to clock up his 7,000th sale before his 70th birthday. 67 year old Bill Board, of Dorchester Nissan, is looking forward to the milestone after logging his 6,650th sale this month. A greatgrandfather with no apparent plans to retire, he’s now set his sight on the sales milestone before his next age one. Amazingly, Board has logged every sale since his very first – a used VW Golf to a Church Canon in 1977. ‘On my first day in the job my boss told me to get myself a ledger and keep a thorough record of every vehicle I sold,’ said Board. ‘I guess I just never got out of the habit and I’ve now got a big pile of books at home, listing the full details of every deal I’ve ever done. There are probably lots of people out there who’ve sold more cars than me, but I doubt they can say exactly what they sold, when and to who.’ Interestingly, he never moved from the business at which he made his first sale. When he joined
in 1977, the Dorchester dealership was an Austin Rover franchise owned by Wadham Stringer – since when it’s moved premises a number of times, and eventually became a Nissan dealer in 2004. His best ever year, Board’s records can confirm,
was in 1988 – selling an astonishing 301 cars, including 64 in one month alone. ‘I just try to be myself, be friendly and be honest,’ said Board. ’When I first started in the trade everyone preached about the Pendle system – an American way of selling cars – but I didn’t get along with it. When I ditched the system and just started being myself, that’s when I began selling.’ Tony Jordan, dealer principal at Dorchester Nissan said: ‘Bill’s an absolute phenomenon and a force of nature. He’s such a gentleman and genuinely nice bloke that people instantly warm to him and trust him. He’s an absolute asset to the dealership and I’ve got no doubt he’ll hit the 7,000 mark before long.’
CarDealerMag.co.uk | 15
DASHBOARD. EXPANSION
Cambria adds new dealers CAMBRIA has added three new franchises to its portfolio, after acquiring County Motor Works. Based in Chelmsford, Essex, the dealer has franchises for both Vauxhall, Alfa Romeo and Chrysler-Jeep. ‘We have now completed nine acquisitions since we formed the group in 2006 and represent 16 brands across 42 outlets,’ said Mark Lavery, chief executive of Cambria.
SURVEY
Brit cars lose the most value BRITISH cars have been revealed as the worst for depreciation, according to figures from Adzuna.co.uk. Brands like Jaguar, Vauxhall and Land Rover all rapidly depreciate, losing more than 58 per cent of their value in four years. German and Italian cars hold their value better, falling just 40 per cent over the same period.
16 | CarDealerMag.co.uk
Approach Andover sells for ‘seven figure sum’ bit.ly/Approachsells
Future of Nissan’s spicy sub-brand Nismo looks hot... ...and interesting. James Baggott reports
N
issan has revealed the future direction of its Nismo sub-brand. At the press launch of the Juke Nismo in Barcelona, the Japanese manufacturer let journalists get behind the wheel of a camouflaged, higher-powered version of the car – suggesting what the future might hold for the firm. The standard model already has a power hike to 197bhp from its 1.6-litre DIG-T unit as well as handling and steering modifications, but the new model will have even more punch. Although the maker remained tightlipped on the faster car’s name – there was no mention of the RS moniker we unveiled at the Paris Motor Show – but we did learn it would get a further 18bhp as well as an even sportier set-up. We had a short spin in the disguised car on an auto test course and can report it sounds meaner and pulls
Juke Nismo harder than the standard Juke Nismo – which is already an impressive package in itself. Nissan engineering supremo Jerry Hardcastle said: ‘The high-powered version is still under debate. It’s clear as you increase the power the chances owners will want to take it on to a track increase, too, so it will be a difficult balance to set up, but we are working on it.’ Some may wonder why the brand’s
JUKE NISMO’S A COOL THING NISMO is the icing on top of the cake for dealers, believes Nissan GB managing director Jim Wright. January saw the first built-in-Britain Juke Nismo models arrive in showrooms and they’ve been met with a hugely positive response from the Nissan dealer network. ‘This is what happens when you start to move the machine in the right direction,’ Wright told NissanInsider.co.uk. ‘By delivering volume we make profit, and we are then able to invest. This
iconic Nismo performance arm’s attentions have been turned towards the Juke before anything else in the model line-up – there are, after all, more sporty models already in the maker’s arsenal. However, Miyatani San – the president of Nismo – said it was because the maker wanted to build a global brand. Although hugely respected and revered in Japan, Nismo is little known outside the country – unless you happen to be a PlayStation Gran Turismo fan. ‘That’s why we had to focus on a volume model will pull up the brand and the average first,’ he said. transactional price will increase, too. However, the high-powered Wright tried the Juke Nismo at the Juke wasn’t the only surprise press launch and said: ‘It’s a cool little Nissan had up its sleeve at car.’ the event. The manufacturer Sales expectations are around 1,000 also pulled the wraps off the Nismo models a year. Last year, 29,000 next car to get the Nismo Jukes hit the streets in the UK, so it will treatment – the sporty 370Z. be small volumes in the grand scheme of Looks like Nismo is here things – but still very important. to stay… ‘This is just the start,’ said Jim. ‘There’s a lot to look forward to with Nismo.’ Handbook: Juke Nismo – Page 34
CarDealerMag.co.uk | 17
dashboard.
Burnley-based Renault dealer shuts its doors bit.ly/Renaultclosure
Ramirez relocates to Renault as new MD
Caterham
UK arm of French firm appoints new boss
R
enault UK has announced its new managing director – Ken Ramirez. Effective from February 1, 2013, Ramirez joins Renault having transferred from partner company Nissan’s Latin America and Caribbean operations – where he was managing director, responsible for Nissan and Infiniti’s operations in over 37 countries. Born in Puerto Rico, Ramirez’s background includes an extensive history in electronic engineering – holding a bachelor’s degree in Electrical Engineering from the Georgia Institute of Technology, and having worked at Motorola’s Automotive Electronics arm for 10 years before joining Nissan. Thierry Sybord, previous MD for Renault UK, has been promoted to a ‘new European role’, the details of which will be announced at a later date. ‘Under Thierry’s leadership,’ said Ramirez, ‘Renault UK has made significant progress through its business evolution plan, at both company and dealer levels. I look forward to continuing to rebuild our brand value and market presence in the months ahead. ‘With six great new models to launch within
Around the world Dealer news from somewhere other than here
Ken Ramirez less than six months, including the stunning new Renault Clio and the introduction of the Dacia brand and its initial line-up of Duster, Sandero and Sandero Stepway, we are clearly affirming our commitment to our loyal and new customers as well as to our partners in the dealer network. ‘I’m eager to get to know the UK market and confident of the exciting future for our Renault and Dacia brands in the UK.’
RUSSIA
Russian car sales are predicted to slow, if not decline, in 2013 after three years of more than 10 per cent gains. Even so, it is believed the country’s car market will surpass Germany by 2014. Renault and Peugeot have both stated they are relying on sales here after suffering a decline across Europe last year.
USA
The US Department of Energy has announced ‘more realistic’ goals for electric car sales after they slowed significantly in January from December. In 2011, Barack Obama stated that one million electric cars would be on the road by 2015, but the energy secretary, Steven Chu, has called this ambitious. Instead the government propose to reduce the cost of electric cars. 18 | CarDealerMag.co.uk
UAE
Annual statements reveal that the UAE has ranked top for car sales growth in 2012, recording a 67 per cent increase on the previous year. Toyota topped all other car manufacturers with record sales of 33 per cent in the UAE, helping them regain their position as the world’s number one car manufacturer.
INDIA
Legendary British sports car firm forced to leave namesake town CATERHAM Cars has announced its departure from the dealership in their namesake town in Surrey. The Caterham Cars showroom on Station Avenue in Caterham, Surrey, is set to be closed down and turned into retirement flats – forcing the sports car brand out of the town altogether, the BBC reports. The site, opened in 1973, was once home to firm’s production line, but now just handles sales for the south east – with a facility in Dartford, Kent having taken over production of the now-iconic Seven back in the 1980s. It’s as yet unknown where the showroom will relocate to. ‘Unfortunately these plans are beyond our control as we’re only a tenant in these facilities, and we don’t own the site,’ chief commercial officer David Ridley told the BBC. ‘We wanted to stay in Caterham, but nothing was available. We’re going to be making an announcement this week. Hopefully [the new premises] will be in a 1015 mile radius of our current location.’ The move comes just weeks after Caterham’s recent announcement of a joint venture with Renault – something that’s tipped by many to turn the company’s future around.
AUSTRALIA
Australian car icon, the Holden Commodore, has been released in its latest incarnation. The firm claims it is the most technically advanced car to be designed, engineered and built in Australia and they will produce as many Commodores as Australians are willing to buy. Holden has halted manufacture for the first six months of the year on older versions as customers await the latest model.
Automatic variants of the Nissan Sunny and Micra will be introduced to India sooner than planned. Nissan hopes this will secure them a 10 per cent share of the country’s car industry by 2016. This comes after news the manufacturer’s low cost car brand, Datsun, will also be introducing a small car to India in mid-2013.
CarDealerMag.co.uk | 19
DASHBOARD.
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 JANUARY 14-18 Vertu Motors further expanded its portfolio of northern dealerships – purchasing Walter C Brigg Vauxhall of Keighley, West Yorkshire. A Good Samaritan, whose car was cut into by a fire and rescue service, was awarded a new Vauxhall Vectra – all thanks to Network Q. Jaguar Land Rover announced that 800 new jobs would soon be available at its Solihull plant – just a few days after Honda announced the same number would be cut. Auto Trader stuck the knife into Sunday Times Driving’s ‘premium’ used car advertising portal – relaunching its ‘Top Marques’ site with full integration to Auto Trader. The AA brought out a new iPhone app – using telematics, it can reportedly monitor how safe drivers really are, and report tips back to them on how to improve. A one-of-a-kind Ferrari 458 Italia worth £230,000 was stolen from a Surrey dealership – with police suggesting that the theft was clearly a wellplanned attack. Car sales in the EU slumped drastically in December, a report from the ACEA suggested – with only the UK managing to buck the trend and post a positive result. The number of cars manufactured in the UK for export hit an all-time high, the SMMT reported – with over 80 per cent of our country’s production destined for other shores.
JANUARY 21-25 Nissan extended its Cared4 approved used car programme – previously winning big at our Wheeler Dealer Awards, it’s now available until March 31. Snow-laden cars could prove expensive for motorists as the government announced those who fail to clear the white stuff from their cars will be liable to receive fines. Renault Retail gained a new MD – Len Curran, whose previous credits include managing director for commerical operations at the firm back in 2001. Things were looking bright for HR Owen – as the prestige-specialising dealer reported high performance during 2012 (see p86). The previous site of dissolved Vauxhall dealer Approach was sold for a ‘seven figure’ sum. Motor retailers continued to claw back their profits towards the end of 2012, an ASE report showed – with the average dealer said to have made £351 in profit during November. Nissan slashed the price of its Leaf electric vehicle – dropping £2,500 from the RRP in preparation for the reveal of an updated model. 20 | CarDealerMag.co.uk
From top left clockwise, Audi online booking, Len Curran, Leaf, Caterham
RAMIREZ FOR RENAULT
Story of the month Renault UK announced its appointment of new managing director Ken Ramirez. He joins Renault from February 1, having transferred from partner company Nissan’s Latin America and Caribbean operations Full report, p18
– with CAP suggesting that the models may not depreciate at an adverse rate. Troubled black cab maker Manganese Bronze finally had its fate sealed, as administrators PricewaterhouseCoopers sold the company to Chinese car maker Geely. Cambria Motors PLC acquired three new franchises, as it purchased Chelmsford-based County Motor Works.
FEBRUARY 4-8 Big spenders were still out in force in 2012, figures from BCA suggest – with a Porsche Carrera sitting in the sales top spot at £197,000.
January 28 – February 1 Kia unveiled a Golf GTI rival in the form of its Pro Cee’d GT – with a 201bhp 1.6-litre turbo. Caterham Cars was forced to move from their original dealership, which was located in its namesake town of Caterham, Surrey, after plans to turn the building into retirement flats were revealed (see p18). Southern dealership group Whitequay Ltd went into administration, after the business hit trouble. Budget brand Dacia revealed that residual values for its models may be far better than expected
Plans to introduce an 80mph speed limit were parked, according to the Sunday Times. A court heard that a Mini Clubman with a faulty turbocharger had allegedly poisoned its driver with exhaust fumes over an 18-month period. Renault replaced its Scenic with the off-roadinspired Scenic XMOD. Audi launched an online booking facility capable of managing servicing and MOT requests in realtime and confirming appointments. The RAC clamped down on the use of its brand by dealers in the used car sector by implementing a new set of rules. AutoExposure launched a new ‘smart’ web platform for car dealers looking to update their online offering. [CD]
BMW Dealer of the Year 2012
The Ultimate Driving Machine
THE COMPETITION KEEPING US AHEAD OF THE COMPETITION. CONGRATULATIONS TO 2012 BMW DEALER OF THE YEAR AWARD WINNERS. OVERALL DEALER OF THE YEAR STRATSTONE DERBY Regional Group – Dealer of the Year WILLIAMS STOCKPORT
Customer Champion CARRS OF BURY ST EDMUNDS
Owner Driver – Dealer of the Year SYCAMORE PETERBOROUGH
Aftersales Champion RYBROOK WARWICK
Dealer Principal of the Year JOE ROGERS, BAVARIAN
Corporate Sales Champion SYTNER GROUP Marketing Champion BOWKER GROUP Used Car Sales Champion HALLIWELL JONES SOUTHPORT
THE ULTIMATE DRIVING MACHINE. www.bmw.co.uk
27787 BMW_DealerOfTheYear_AwardA4 v7.indd 1
07/02/2013 16:38 CarDealerMag.co.uk | 21
FINANCE. FLA STATS
Showroom agreements see £9bn lent over year OFFERS in car showrooms have allowed more than 650,000 cars to be bought according to a new report. The FLA has revealed that £9bn has been lent by the industry from November 2011 to the same time the following year. This represents a 34 per cent increase, around £2bn, on the year before. The report also reveals that showroom finance accounts for 70.8 per cent of private cars sold in the previous 12 months, of which 63 per cent are PCP agreements. ‘These figures show continued strong growth in the new car market as incentivised deals continue to make new car prices attractive for buyers,’ said Paul Harrison, head of motor finance at the Finance and Leasing Association. ‘Those incentives are available across the full range of finance products including hire purchase, leasing and personal contract purchase. ‘Motor finance companies have provided drivers with an extra £2bn of finance in the last 12 months allowing thousands more people to drive away from the showroom in a new car.’
22 | CarDealerMag.co.uk
More people turn to finance companies for bigger sums to fund new and used cars Consumers choose good-value deals to take strain off their bank accounts
T
he proportion of cars bought on finance increased considerably in 2012, according to the Finance and Leasing Association. Figures from the association reveal a 27 per cent increase in the number of new cars bought by consumers on finance last year – demonstrating the continued need for finance throughout the industry. The value of advances on new models jumped even further – 36 per cent up over the same period – suggesting that consumers are relying on finance agreements to take more financial strain than before, too. Consumer-bought used cars also saw an increase: Both in value of advances and number of cars, each up eight per cent. It was for business users that financed used sales saw the biggest increase, though – with numbers up 40 per cent on last year. ‘These figures show that customers
want good-value deals and are finding them. The number of cars financed by FLA members is at its highest level since before the start of the recent financial crisis,’ commented Paul Harrison, head of motor finance at the FLA. ‘The factors underpinning consumer
confidence in motor finance seem likely to continue. And a quarter of all showrooms are now approved under the FLA’s Specialist Automotive Finance initiative (SAF), which helps ensure high levels of understanding of the finance options which are available to customers.’
Peugeot helps young drivers with addition of 208 to JAF scheme PEUGEOT has demonstrated its commitment to supporting young drivers by adding the 208 VTi 1.0 litre 68bhp to their Just Add Fuel scheme. This comes after news from the SMMT last month that young drivers are putting off car servicing to save money. Market research shows the car manufacturer has reaped the benefit of the JAF scheme. Since it began in
2011, the number of Peugeot buyers under the age of 40 has risen from 22 per cent to 40. The JAF scheme is an all-inclusive, inflation-proof package that provides comprehensive motor insurance, road tax, vehicle servicing, roadside assistance and warranty, all in a three- year finance package, with one monthly payment.
‘The figures recently published by the SMMT offer the latest indication that young drivers are feeling the financial challenge of owning a car, said Neil Moscrop, Peugeot’s director of sales. ‘The welcome addition of the 208 to the JAF range, demonstrates Peugeot’s on-going commitment to support young drivers.’
..in association with
DEALFINDER. Latest finance deals on CITY CARS SEAT MII The new Mii is the smallest in Seat’s range, referred to by the company as the car which opens up infinite opportunities. The tiny four-seater is packed with features including the Seat Portable System which combines music, satellite navigation and an onboard computer. The car comes with the option of three or five doors – buyers can choose either in the Toca or Sport edition and still take advantage of not paying a deposit. However, Seat offers an £850 saving on the Toca and the low monthly payment of £155 on the three-door edition. After 42 months, buyers will have paid
£10,716, which is under £1,000 more than if they had bought it for the RRP of £9,845. The offer also includes free servicing for customers purchasing the Mii through financing. And if you feel that you need the extra space, the £0 deposit is also available on the Seat Ibiza.
TOYOTA IQ AT less than three metres long, the iQ is small on the outside like the Mii but surprisingly spacious on the inside – and Toyota has still managed to fit nine airbags and six speakers in there! The iQ only comes with three doors and
four seats but there are three levels of trim to make the drive even more comfortable. A representative offer puts the Toyota iQ at £139 for 35 months with a deposit of £2,817 – altogether buyers pay £11,890. For the iQ2, customers will pay around £160 a month or £180 a month for the iQ3, both with the same deposit. This is also available with an adjustable deposit through the ToyotaAccess scheme. However, this offer is also only available until March 31. Buyers can also enjoy a five-year warranty included in the price.
KIA PICANTO Kia is currently offering great savings on the Picanto range with finance, from £250 on the 1 or 1 Air models to £1,250 on the City version. For the total amount payable of £9,145 buyers may only get four speakers rather than the iQ’s six or the Seat’s Portable System but they do get the the Picanto 1 with five doors and five seats. With a deposit of £2,157 and payments of £105 for only 36 months the 1.0 litre Picanto is a bargain. Buyers can also pay just £99 and receive insurance for a whole year.
As with the other two cars, the Picanto has very low emissions making taxing it completely free. And on top of that it also includes the standard Kia seven-year warranty.
Meldrum
time is money
The truth of Non-Prime
I
was absolutely astounded recently when a friend of mine outlined the three main reasons why he felt car dealers avoid partnering with Non-Prime (NP) lenders. Somewhat miffed I challenged his misconceptions and I repeat my answers for you here. Missed repayments will result in immediate repossession. This suggests that only NP lenders repossess cars while Prime lenders do not and that’s completely untrue. First Response takes a pragmatic approach to repossessions because our goal is to help customers purchase and then get full use of a much-needed car. We feel it’s better to work through any temporary problems with our customers, leaving repossession as a last resort. Customers pay excessively high interest charges. Because we lend money to people who generally cannot obtain mainstream finance, it would seem reasonable that we charge more than high-street banks for this riskier category of business. There are, of course, ‘pay-day’ type lenders out there who charge very high interest rates but our average HP rate is nowhere near theirs. Loan amounts are too small and terms too short. Most NP customers cannot afford expensive cars so they are looking for sensible cars which, because the repayments are affordable, can be over a shorter term. The NP market is primarily composed of people who need transport to get to work and back – we aim to provide the finance to help customers achieve this. Unfortunately, miserable misconceptions like these could harm the development of partnerships that will provide vital assistance to the ever-growing population that continues to be ignored by mainstream lenders. Find out more about the truth of NP lending by contacting me anytime as listed below.
‘The NP market is composed of people who need transport.’
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
CarDealerMag.co.uk | 23
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24 | CarDealerMag.co.uk
13/2/13 10:54:52
big mike.
I
All Big Mike’s columns are on our website. Enjoy here bit.ly/bigmike
Cor blimey! Communism creates crummy cult car
n my last column – the biggie – I spoke broadly about my favourite cars of all time. One of the top cars in my list of the backstreet dealer’s history of dream metal was the loveable Lada and I thought this month I’d expand a little on my last experience of flogging one. The Lada Riva is the automotive equivalent of the Hollywood B-Movie. An item so utterly, utterly dreadful, badly made and unappealing to look at that it automatically assumes the status of a loveable underdog, adored by the devoted few by the very nature of its sheer existence. Here was a car that should have been put out to pasture in the late 1960s. It was, of course, still largely relevant in its home market. Even in the new, thriving, economically unshackled Russia the old Riva, or Avtovaz 2101 as it’s snappily titled, is still a thing of relevance – its simplicity, ease of maintenance and dogged reliability outweighing every single one of its obvious shortcomings. In a market where most customers demand simple luxuries such as air conditioning, leccy windows and CD players on their used cars, and want Bluetooth, app compatibility and automatic parking aids on their new ones, it’s hard to imagine how or why anyone today would want to buy one. So when I was offered one in part exchange against an aged Ford Focus last year, the new owner of which must have felt like a passenger aboard a five-star luxury liner as they drove off my lot (rather erratically, I should add, as they came to terms with such novelties as power steering, a light clutch and working brakes), I assumed it would be something comical to take down to the auction on a Monday to get laughed at by my mates in the business. Not something that would turn a quick or surprise profit. Back in the ‘80s and ‘90s, you could sell Ladas really easily. Their inherent lack of complexity, mechanical durability (sadly never matched by the flaky Russian steel in which its proven powertrain was wrapped) and low, low purchase price meant a steady flow of tightwads sacrificed their comfort, haste and street cred for basic but dependable wheels. I liked that. The vast majority of buyers were also astutely middle class. The Lada was never a working man’s car in this country – that job fell to a wellused Ford Escort or Morris Marina. The Lada was the car for the penny-pinching few, and among my Lada customers over my chequered career have been an accountant, a famous cricketer,
Big
two bank managers, a solicitor and at least half a dozen geography teachers (who I assume have their own national owners’ club). After knocking around in the Riva for a fortnight (until the tax ran out), I decided the only option was for me to stick it up on that well-known auction website, with no reserve. I imagined the buyer would be a student wanting a laugh, or maybe a group of lads embarking on one of those banger rallies that quite often conveniently hoovers up the contents of Pooh Corner (the grubby bit of my yard where I keep unsaleable part-exes). Maybe even one of the Car Dealer team embarking on the next Bangers4Ben… though I can’t imagine Mr Batchelor ever settling his dapper posterior on to a moderately torn swathe of Russian knitbacked vinyl. But no. This time, it wasn’t even a geography teacher,
Mike
‘The Lada Riva is the automotive equivalent of the Hollywood B-movie. ’
Our man on the inside spills the beans on the car business...
though I wouldn’t have been surprised if the GeogroLada owners club had a bit of a hand in bumping up the bidding. By the time the clock stopped, my loveable old Lada, which was in tidy but not perfect condition, had bid its way up to an astonishing £1271.09. That’s almost as much as the bloody thing cost new. The winner was a middle-aged, well-dressed and extremely well-spoken gentleman who travelled all the way to the West Midlands from Dorset to collect it. Apparently, the Bournemouth area used to be good hunting ground for old Ladas, until most of the owners died and their benefactors threw their cars away as it was easier, and occasionally cheaper, than trying to sell them. He’d been looking for one for about four months, ever since his previous Lada Riva was written off by an out-ofcontrol Saxo being powered by its stereo. It turned out he was a stockbroker. A man who had made enough money to buy a massive house in Sandbanks, just outside Poole – an area known locally as Millionaire’s Row. What’s more, he didn’t buy the Lada because he was tight. He bought it because he ‘liked things like that’. Amazing how cults develop. Next, you’ll be telling me there’s an owners’ club for the Austin Allegro…
Who is Big Mike?
Well, that would be telling. What we do know is he’s had 30 years in the car trade and picked up some seriously funny tales along the way. CarDealerMag.co.uk | 25
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Have you got our FREE iPad app? Download here bit.ly/CDMiPad
Powered by Fairy Dust? Translation: Driven by ditzy blonde
I
’ve been doing a lot of miles lately – mostly on my own – and as much as I love those service station super-heated, tongue dissolving lattes and Marks and Spencer sandwiches (oh, the triple pack of joy), I find my real problem is the boredom. It always surprises me just how quickly the grey fuzz of nothingness descends over my brain. This boredom can take a matter of minutes to set in, and when it does I’ll do absolutely anything to stop my brain going into a coma. It usually begins with a little motorway Olympics. First up is the oft tried, but never mastered Attempting To Change Lanes Without Hitting A Cat’s Eye. A lot harder than it seems. Then there’s the Rep Tandem Sprint, where I tag on to the back of a hateful Vauxhall Insignia, piloted by a shiny suited shower curtain ring rep, and attempt to keep our space equidistant and pace on parity as we flow from lane to lane at 85mph. The winner is the one who holds their nerve when they spot a battenburg-backed car: Is it Plod? Is it Motorway Maintenance? There’s only one way to find out… Anyway, this week I’d failed miserably at CLWHACE and had been scared off by an obviously late and unbelievably fearless salesman in an Audi A5 in my second game of RTS. Feeling beaten, my mind wandered off and focused instead on the barnacles and tattoos that so many motorists feel the need to adorn their humble cars with. You know the sort of thing I mean, the stickers, flags, and badges that tell you more about the owner than you really want to know. I know a sodding dog is for life and not just for Christmas… and who gives out dogs as Christmas presents anyway? I digress… Well, this got me thinking (which does happen from time to time), that you guys in the trade probably use these moron markers as a rather handy part exchange valuations tool. The trade guides are all well and good, but they don’t account for these telltale signs of ownership history as well, do they? Exhibit A, your honour – and the one that should scare you the most – is the ubiquitous ‘Powered by Fairy Dust’ tattoo. Translation? Car driven by ditzy blonde,
James Baggott *EDITOR’S NOTE: I WAS FORCED TO INCLUDE THIS COLUMN. SORRY!*
who’s got make up on the seats that even Helga the Hooverer won’t be able to get out, it’s been reverse parked into seven lampposts, and it’s got no oil in it because aforementioned driver did not realise engines had moving parts. Baby on Board sticker? Translation – prep costs will need to account for four hours Wotsit DNA removal from the crevices in the back seats, there’s chocolate button smudges on most surfaces which look like a prisoner of war’s dirty protest and it needs a new stereo as the current one has 35 Really Annoying But Incredibly Catchy Kids Songs CD stuck in it. Then there’s the BMW 318d with M badges stuck in the wrong places. Translation: Driver is a complete and utter gentleman’s sausage and doesn’t have the credit or deposit for the Audi S5 he’s asked to test drive. Sell him a used A4
‘Or there’s the mentalist who’s covered their dashboard in cuddly toys.’ diesel and an S badge instead… Or there’s the mentalist who’s covered their parcel shelf and dashboard in cuddly toys like some moving padded room. Batty driver will ask you how many cats she can transport in the Fiat Doblo while you wonder how to get the smell of wee out of the seats of her part exchange. Other barnacles to watch out for include: Countless surfing stickers in a rear window that can only be removed by replacing the glass; those religious fishes (badge of the selfrighteous); any aftermarket rear spoiler and/ or sewer pipe-sized exhaust; spinners of any description; absolutely anything pink and automotive related; anything with stripes that weren’t factory fitted; Bentley badges on anything made by an American; Nurburgring stickers on people carriers or Smarts; My Other Car is… stickers (badge of the bipolar). The list goes on. In fact, if you’ve got any I’ve forgotten, tweet me… spotting some new ones might brighten up one of my now rather regular motorway journeys.
Who is James Baggott?
He’s the founder of Car Dealer Magazine and managing director of parent company @BlackballMedia, an automotive services provider. He now spends most of his time on Twitter – @CarDealerEd – and annoying the rest of us. CarDealerMag.co.uk | 27
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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 received a phone call from a potential customer who had seen a particular car on my website. I always encourage people to check out cars on my site before purchasing, but he was insistent he wanted this particular car. He said he had been looking around and this was the best example he had come across at the price. He was keen to secure it and said he was happy to buy it on my description and paid for it by credit card over the phone. The transaction went through ok. He wanted to pick it up the morning after, and I said that I liked to prep a car, but he insisted he wanted to pick it up. I agreed. On the following morning he called and said he had had trouble with train connections, but to make it easier could I drop it round to a motorway service area five miles away where, fortunately, he had a friend who would take delivery. He was due to meet up with the friend so it would work out fine. I agreed and the car was delivered. Approximately six weeks after, I received
notification that the transaction had been a fraud. The credit card was stolen and the person that owned the card had seen the transaction pop up on his statement. The money was withdrawn from my account. How can I avoid this scam? GH, Devon
A
This type of fraud is rife and there are things you can do to reduce the risk. The first is to be clear in your mind how much risk you are prepared to accept. The scenario you describe is probably the most risky. Getting a customer to pay by cash is perhaps the least. In between ground is insisting the card holder is present (using chip and pin) when authorising the transaction, or taking a cheque or bankers draft. The latter two are still very risky but it can be offset if you retain the vehicle until the cheque is cleared. If you must use ‘Card Not Present’ sales, here are some tips to reduce (but sadly not eliminate) the risk. Remember, even if you receive an authorisation code during the transaction, all that means is that funds are available and the card has not been reported lost or stolen at that time.
Witness this ADVICE
Q
I have an employee whom I have invited to attend a disciplinary hearing. They have asked if they can bring a legal representative with them as their witness. Can they do this? DD, Isle of Wight
A
This is an issue we are asked about frequently. Employees feel that if they bring a legal representative with them, the outcome of the meeting will be different. It has always been the case that employees are only ever allowed to bring a colleague, unconnected to the disciplinary process, or a trade union representative to a meeting. They have no right to bring a legal representative or a family member to any formal meeting. We would advise you respond to the employee to inform them of this and allow them to reschedule the appointment if they require more time to find a suitable representative.
Gather the following information: Card number; card holder’s name on the card (do not transact with anyone other than the card holder); expiry date; billing address (be suspicious if there is a delay in replying); delivery address (you may want to refuse to deliver if it is different from the billing address); phone number (land line is preferable as it is easier to trace); card issuing bank and card security code. Be extra cautious if: The customer wants to buy more than one car; the customer wants a third party to take delivery; the customer won’t sign for delivery; the customer wants delivery to an anonymous address eg as in the case of a motorway service station, or a different address than that agreed; or if the customer is in a rush.
Carry on holidays: Confusion over employees’ rights Q A I have a member of staff who has been off sick since October 2012. We are now into a new holiday year, as of January 2013, and the member of staff has informed me that they want to carry over their unused holiday in 2013. I thought that once a holiday year had concluded, holiday pay could not be carried over. Please can you let me know where I stand? GM, Cirencester
This is a common question. In 2009 European Case law dictated that employees who are on long-term sick, or maternity leave when a leave year expires, are allowed to carry over any unused holiday that they have accrued. Employees are allowed to take the holiday upon their return to work, or, should they request it, have holiday between sickness certificates.
Q& A
Let Lawgistics help you... 28 | CarDealerMag.co.uk
If the employee does not return to work following their period of sickness, they will be entitled to payment of the accrued holidays in their termination payment. If an employee becomes ill during a period of annual leave that has already been booked, they will be entitled to rearrange these to be taken at a later date. Failure to make these payments can result in a claim for discrimination by the employee.
Lawgistics is 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
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DIGITAL MARKETING EXPERTISE
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forecourt.
Skoda Octavia The Czech brand’s new UK director, Alasdair Stewart, tells Car Dealer about his plans for the dealer network
How have you found your time at Skoda since your appointment in May 2012? It has been very good. I was at Bentley for 18 years, Bugatti before that, and obviously it has been very different. Skoda is an ambitious brand with big growth plans which are properly supported with new models, investment in marketing and the dealer network. In June, we are looking at changing and upgrading the network, for instance. The people at Skoda are good – it is not a big bureaucracy. I find the Volkswagen as a brand a bit like a government – Skoda is not like that. Skoda is nimble, it makes quick decisions, and has its own spirit and mind – even though its sits within the Volkswagen Group. How’s the new-look dealership programme going? It’s going well and we are in the process of doing it now. There was a refreshing exercise last year where our dealers cleaned up their showrooms a bit, but we are now going through a whole CI change. We are taking dealers across to Seville to talk to them about that and explain to them how it is going to be rolled out. It’ll be a process which will last for the next two to three years, and we’ll ask dealers to make an investment in slightly enlarging their showrooms, putting up new signage, installing new furniture, and also working to some new sales and service processes. Are your older dealers proving receptive to the plans for growth? The majority are and they will relocate and refurbish their facilities. That is a big investment – moving costs several hundred thousand pounds, or more. We have got one or two dealers who won’t be doing this. In the end, we will probably reach an agreement where, if they say they are not going to move and invest in the longer term, they will not be with the brand. I’m sure there are plenty of dealers who would fill their places... We have got good applicants. We talk about our network strategy as blended. Skoda’s success has largely been based on the growth and development of our independent dealers. They have built up the brand in their local community and have put Skoda on the map. We do not want to lose them completely but, in some of the bigger metropolitan regions, we need the resources of the bigger retailers to invest in buildings, people and processes. We are starting to work more with 30 | CarDealerMag.co.uk
POWERTRAINS
Octavia powered by a range of tried and tested VW engines. Eco GreenLine version arrives later as does most powerful vRS yet.
the bigger groups – the Benfields, the Lookers and the Listers; the dealers who are strong, regional groups who have got good resources and locations, putting us more in the public eye. Skoda is not a destination brand like Audi – people do not travel to us, so we have to be where other brands are. Will 2013 be as successful as 2012? That is our plan. We aim to push up towards 60,000 cars – that will be another big growth mark for Skoda – and a market share of around 2.8 per cent; 2012 was 56,000 cars and a share of 2.6 per cent. In 2015, we have a got an ambition of pushing towards 70,000 cars and what will fuel this growth will be new cars. We have got new cars coming in every six months. New cars attract dealers; they can see a product plan and they are receptive to that. And then you get the bigger retailers interested as they have seen what has happened to VW and Audi and they can see there’s evidence of that in Skoda.
in association with
CABIN
Inside, the Octavia has comparable levels of build quality to its brother, the new MKVII Volkswagen Golf. But it’s more smartly designed.
DESIGN
To reflect its move to premium positioning, the Octavia has more svelte looks. But they’re not smart enough to tempt Golf buyers.
on test
Skoda has pushed the new, third-generation Octavia upmarket. But has it worked? James Batchelor reports What is it?
What’s it like to drive?
It’s the latest iteration of a car Skoda calls the ‘heart of the brand’. The new Rapid takes on the valuefocused proposition of the previous generation Octavia, allowing the new Octavia to be a little more expensive and just a little more stylish. An estate variant arrives later in the year, as does a hot vRS model. The Octavia hatchback appears in showrooms on Saturday, March 16.
We got behind the wheel of the 1.2, the 1.6 and the 2.0-litre and we were particularly impressed with the first. When mated to the very slick sixspeed ‘box, it’s a zingy little thing that provides plenty of get-up-and-go, despite the Octavia’s large dimensions. It’s composed, grippy and safe – not Ford Focus levels of driver involvement, but above the class average.
What’s under the bonnet?
What do the press think of it?
For petrol there is a zesty 103bhp 1.2 and a rather brisker 138bhp 1.4. Dieselwise, there’s a choice of a 103bhp 1.6 or a 148bhp 2.0 – the former being the most economical and environmentally friendly in the Octavia line-up, returning 74.3mpg on the combined cycle and producing 99g/km. A 1.6 TDI GreenLine arrives later in the year that will emit 89g/km of CO2.
What’s the spec like? Like any other Skoda, the svelte Octavia comes in three flavours: S, SE and Elegance. The predicted best-seller will be the SE which kicks in at £17,190 and throws in rear parking sensors, dual-zone air con, front fog lamps, trip computer, rear electric windows and body-coloured door mirrors.
the knowledge Model: Skoda Octavia 1.6 TDI Elegance Price: £21,090 Engine: 1.6-litre, turbo diesel Power: 103bhp, 250Nm Max speed: 120mph 0-60mph: 10.6s MPG (comb’d): 74.3 Emissions: 99g/km Residual values (three years): tbc
target buyers:
Mostly fleet, but also conquest and current Octavia retail customers
the rivals: Ford Focus, Vauxhall Astra, Seat Leon, Kia Cee’d
Auto Express was impressed, saying: ‘The new Octavia will provide the VW Golf with a big challenge – it’s a great car. It may lack the Golf’s cachet, but for an increasing number of Skoda buyers, that doesn’t (and shouldn’t) matter much at all.’
Key Selling Points:
What do we think of it?
Deal Clincher:
While prices have risen, it’s still good value, and although the dumpy looks of the old car have made way for a stronger, more design-led approach, the new Octavia is still rather undramatic to look at. Overall the new Octavia is a car that will be purchased with the head rather than the heart. But who said there was anything wrong with that?
1. Good level of standard equipment on all models 2. Roomy inside and classleading bootspace 3. Upmarket image
Cabin fit and finish is on par with its brother – the new Volkswagen Golf MKVII Searches supplied by Monthly AutoTrader.co.uk searches: 616,037 CarDealerMag.co.uk | 31
forecourt.
Mazda 6 You are clearly pleased with the new Mazda 6 and have high hopes for it We’ve always been very successful with Mazda 6. It’s consistently been one of our best sellers in terms of segment share. I was involved in the original launch back in 2002 when I was fleet director at Mazda. When the original Mazda 6 came on to the scene, I think it was a big surprise to people who were used to mainstream products that were a bit ‘vanilla’. Rather than change engines, then introduce a new body shape, or put old legacy engines into a new body, we went for a clean sweep. So this car is 100 per cent new, 100 per cent all Mazda, and I think it represents a
Mazda UK managing director Jeremy Thomson chats to Car Dealer about the new 6 and the firm’s fortunes really interesting breakthrough for the corporate sector -- leaping straight to best in class on CO2 and looking great and having all that flexibility and space makes it what I think will be a very compelling car on the choice list.
the car so I’m convinced we’ll do well in retail, as well. In the not too distant past, we have actually outsold the Ford Mondeo in the retail channel. The Mazda 6 is just as attractive to private buyers as it is to fleet.
Are you aiming both retail and fleet? As far as retail goes, we’ve sold 150,000 Mazda 6s to date since the launch of the original car, so we’re talking to people who are very familiar with
Has the car been received well by the dealer network? The new car has exceeded my expectations and also those of the dealer network. In recent dealer
STYLING
The 6 shows off Mazda’s new design language called ‘Kodo’. All we know is that it looks far better than the previous generation.
on test
Mazda’s new 6 is a crucial car for the Japanese firm’s UK dealer network. Dave Brown reports
What is it? The third incarnation of the 6 is available as a saloon and tourer (no change there) but it is in fact a totally fresh vehicle. Mazda has worked like mad to try to build a world-beater here and the early signs are that they might be on a roll. It has already been voted car of the year in Switzerland. So they’re on a Swiss roll at the very least.
What’s UNDER THE BONNET? Mazda’s range of high-efficiency Skyactiv powertrains includes two petrol engines and two diesels paired to six-speed automatic or manual transmissions. Skyactiv-G petrol engines include the 2.0-litre 143bhp and a 2.0-litre 163bhp both producing 210Nn. Skyactiv-D diesel engines 32 | CarDealerMag.co.uk
include the 2.2-litre 148bhp and the 2.2-litre 173bhp. They’re clean and efficient engines that won’t damage customers’ pockets – or the planet – too much.
What’s THE SPEC LIKE? Entry-level SE cars cost from £19,595 and come with an engine stop-start button; front and rear power windows; Bluetooth and a leather-wrapped steering wheel and gearknob. Mazda believes the
mid-range SE-L model will be the most popular. It comes with features such as privacy glass; dusk-sensing lights; Smart City Brake Support and power-folding door mirrors. Prices range from £20,395-£22,595, while the Mazda 6 range tops out with the Sport Nav trim which costs between £24,115 and £27,295.
in association with
meetings we were able to give them an early reveal of one of the pre-productions and they were blown away and it helped them to understand the future of the Mazda franchise. Seeing it in the metal they discovered how well Kodo design works, differentiating it from other cars in the segment. Although the C/D segment has been declining, I don’t see that as an issue. Mazda can take a reasonable share and do very well and it’s our expectation that we can achieve six per cent market share of the segment and sell about 7,500 cars this year. That’s conservative in my view because in the past we’ve sold as many as 12,500 Mazda 6s a year.
How has the last five years been? We unexpectedly had a good year around scrappage. We were one of the companies that actually did slightly better than our normal market share so that was good for the network. But then the impact of the ageing product range meant we did less and less fleet. Retail was about static for those years, but fleet dropped off – 2007, 2008, 2009 were good years, but then 2010 and 2011 were not easy for any manufacturer. We’ve been around 50,000 units a year for three or four years. This year we’ll do around 25,000, then we’ll build it back up again rapidly off the back of new product.
The CX-5 has been a success hasn’t it? Globally, CX-5 has been a massive success story to the point where we’ve had to increase production by 25 per cent just to keep up with demand. There’s a substantial waiting list in some countries. We’ve managed things as best as we can here. We’ve got a better supply situation than we’ve had for some months and dealers are starting to see that come through, which is important. There’s a lot of positivity and positive feeling around the network and the Mazda UK staff about where the company is today.
INSIDE
There’s a step-up in quality but the design is a bit bland in some places. However, there’s loads of space and it’s comfortable up-front.
the knowledge
ON THE ROAD
Engineers have worked hard on making the new 6 pleasurable to drive. They’ve also paid attention to improving refinement.
Model: Mazda 6 2.2 150PS SE-L Price: £22,595 (as tested) Engine: 2.2-litre, turbo diesel Power: 148bhp, 380Nm Max speed: 132mph 0-60mph: 8.9s MPG (comb’d): 67.2mpg Emissions: 108g/km Residual values (three years): tbc
target buyers:
Retail and fleet buyers; owners of previous generation Mazda 6 and conquest customers
the rivals: What DO THE PRESS THINK OF IT? Honest John was impressed, saying: ‘Fit and finish is excellent. You are not short-changed anywhere. Only the ergonomics of the centre console are far from ideal.’
What DO WE THINK OF IT?
What’S IT LIKE TO DRIVE? We could only drive the 2.0-litre, petrol, manual version. There’s no doubt it was a smooth, refined drive, with a peach of a gearbox. The blind spot warning light is a touch over-sensitive, though.
This car is crucial to Mazda. The Japanese manufacturer has spent a while in the doldrums lately, and some dealers have been finding trade rather sluggish. More zzzz-zzzz than zoom-zoom. However, we feel the marque has charisma and character in abundance and could well be about to turn a corner. If Mazda can get its marketing right, and not keep buyers waiting, the new 6 has the potential to do really well.
Ford Mondeo, Vauxhall Insignia, Volkswagen Passat
Key Selling Points: 1. Build quality improved over outgoing model 2. Class-leading impact protection features 3. Segment-leading cabin space
Deal Clincher: New Mazda6 is a great looking car and, more importantly, stands out in the D-segment Searches supplied by Monthly AutoTrader.co.uk searches: 173,676 CarDealerMag.co.uk | 33
forecourt. the knowledge Model: Nissan Juke Nismo Price: £19,995 Engine: 1.6-litre, turbo petrol Power: 197bhp, 250Nm Max speed: 125mph 0-60mph: 7.8s MPG (comb’d): 40.9 Emissions: 159g/km Residual values (three years): tbc
target buyers:
PlayStation geeks, and hot hatch buyers who want sometime a little different.
the rivals: Mini Cooper S Countryman, Renaultsport Clio 200, Citroen DS3 Racing, Ford Focus ST
Key Selling Points: 1. First in a number of tunedNissans to come to the UK. 2. Packed full of equipment and sporty Nismo touches. 3. Sporty styling.
Deal Clincher:
£19,995 RRP smacks as a bit of a bargain Searches supplied by Monthly AutoTrader.co.uk searches: 151,837
Nissan Juke Nismo
Tuned-up Juke is the first in a number of Nismo Nissans to appear in UK showrooms. James Baggott tries it for size What is it? It’s Nissan’s pint-sized crossover Juke which has been breathed on by Nissan’s Nismo tuning arm. The Juke is the first to get the treatment. Why so? Well, the firm wanted its first Nismo model to be a volume player and with 330,000 sales in Europe last year alone, the Juke can certainly offer that.
What’S UNDER THE BONNET? Nissan’s acclaimed 1.6-litre DIG-T turbocharged powerplant. That’s enough to send it to 60mph in 7.8s – not lightning fast, but it’s still quick enough to entertain.
go, climate control and a number of Nismo niceties. These include fantastically supportive Alcantaracoated seats, a sporty Alcantara steering wheel and unique 18-inch alloy wheels. Nismo branding is subtle and sensibly placed, apart from the red mirrors, which look a bit like teenage acne.
What’S IT LIKE TO DRIVE? Entertaining. It won’t set a customer’s world alight, but it is sure to make a trip to the supermarket a little less of a chore. Suspension tweaks balance a blend of grip and comfort well; the steering is sharp but can sometimes
What’S THE SPEC LIKE? Staggeringly good. Standard equipment is impressive for its £19,995 price tag. Satnav, Bluetooth and reversing cameras are all included in the package as well as keyless
Citroen DS3 Cabrio
Citroen wants to cash in on the Fiat 500C and Mini Convertible’s success. But have they done it? Jon Reay reports
What is it? The convertible version of Citroen’s popular premium hatchback, the DS3. Don’t get too carried away, though – it’s more akin to the Fiat 500, or dare we say it the 2CV, than a full-on drop-top like the Mini Convertible.
What’S UNDER THE BONNET? There are only three petrols for now: A new three-cylinder, and two 1.6-litres with either 122bhp or 155bhp. The latter, which we drove, hits 60mph in just over seven seconds and goes on to 133mph.
What’S THE SPEC LIKE? We haven’t been given a confirmed list, but given the same trim levels we’d expect nothing to change from the DS3 hatchback. The cabrio gets a roof which can be retracted at speeds up to 75mph, standard rear parking sensors. There are new upholstery choices, while some fancy ‘3D effect’ 34 | CarDealerMag.co.uk
rear lights also set it apart from the hatchback. Prices are expected to be around the £19,600 mark.
What’S IT LIKE TO DRIVE? There’s no scuttle-shake like on traditional drop-tops, and although the steering could be a bit more direct, the DS3 remains an enjoyable car to drive. Refinement is also excellent, with the new soundproofed fabric roof said to keep out just as much noise as the standard hatchback’s.
What DO THE PRESS THINK? What Car? said: ‘It’s not cheap, but we think the Citroen’s bigger and classy interior, and more generous standard spec, is just enough to give it the edge over the Mini Convertible’.
What DO WE THINK? Aside from the slightly daft boot opening that’s more a means to an end, it’s an impressive package. The roof is clever, and it does make the car feel about twice as special.
feel a little woolly on the limit. Our only real complaint would be the sound – there’s too much engine whine and not enough throaty exhaust note for our liking.
What DO THE PRESS THINK? Autocar said: ‘The Nismo is the best Juke we’ve ever driven, certainly the most rewarding and now competitive and unique enough for you to consider whether you need to buy a hot hatch.’
WHAT DO WE THINK? The fact Nissan let journalists drive an even more powerful version of the Juke Nismo – coming soon with 218bhp and even sharper set-up – points to the fact this first attempt is really aimed at the mass market, not the performance enthusiast. However, as a start, it’s a good stab at a performance model and with a host of models in the pipeline, we’re sure this won’t be the last you’ll be hearing from Nissan’s AMG.
the knowledge Model: Citroen DS3 Cabrio DSport THP 155 Price: £19,600 (est) Engine: 1.6-litre, turbo petrol Power: 155bhp, 240Nm Max speed: 133mph 0-60mph: 7.3s MPG (comb’d): 47.1 Emissions: 135g/km Residual values (three years): tbc
target buyers: Female buyers and urban dwellers who desire a premium and stylish cabriolet.
the rivals:
Mini Convertible, Fiat 500C, Volkswagen Beetle Cabrio, Peugeot 207 CC
Key Selling Points: 1. Fabric roof adds more style. 2. Thanks to roof design, DS3’s neat handling remains. 3. Classy interior now comes with new upholstery.
Deal Clincher:
DS3 Cabrio has class-leading interior space Searches supplied by Monthly AutoTrader.co.uk searches: 175,654
motors.co.uk The used car site that’s used more.
With over 3,500 dealers advertising 180,000 cars, motors.co.uk is the UK’s second biggest used car network. Every month, 1.8 million car buyers use it to search for a car, plus it reaches a further 19 million readers weekly via our regional news partners. Now, isn’t that useful?
There are many ways to search at
Your search ends here. Traffic figure: comScore November 2012
CarDealerMag.co.uk | 35
Feature.
Honda Accord P41
Mercedes-Benz C Class P39
Business class executive express mega test
Manufacturers have always fought hard in the executive market – but the battle for the best premium saloon is now fiercer than ever
36 | CarDealerMag.co.uk
WORDS: MARTYN COLLINS
BMW 3 Series P38
PICTURES: STEPHEN HALL
Volkswagen Passat P40
Seat Exeo P42
W
ith changes to Benefit in Kind (BIK), plus tax breaks for low or zero emission vehicles, the company car continues to be a prized perk, even during the economic downturn. Despite regular amendments to taxation, there’s a seemingly endless stream of employee joining schemes where a car is essential or not. Changes to company car taxation are confusing, but the key to a top selling company car is low running costs. However, this is only part
of the package as any choice needs to be practical, comfortable and fun to drive. Could the BMW 3 Series be the perfect choice? On sale for just over a year, it is the newest car here. So it might be fun to drive, but are the EfficientDynamics savings enough to get over the high asking price? The closest rival to the 3 Series is the Mercedes C-Class. It is a key car for the three-pointed star, as it accounts for over 30 per cent of the German brand’s sales. Highlights include class-leading safety kit and UK specific trim levels such as the
Executive SE, which is ideally suited to business buyers. Irrespective of a recent facelift, it doesn’t feel as fresh as the BMW - can it still compete? Another class-favourite is Volkswagen’s Passat, which rightly remains popular as it continues to win awards due to its high quality build and spacious, family-friendly interior. It seems good value in this company too. We’ve also got the high-value Seat Exeo and the often overlooked Honda Accord. Let the battle of the execs commence. CarDealerMag.co.uk | 37
Feature.
BMW 3 Series
the knowledge
Overview:
Your view:
Originally launched back in 1975 as a three-door, the current sixth-generation version is now offered in five different body styles. It comes in saloon and Touring estate variants, and is considered to be the compact executive benchmark car. Highlights include the powerful, efficient diesel and petrol engines, keen handling and a luxurious, high quality cabin.
‘For us, BMW has managed to achieve what we thought was impossible; the new 3 Series has far more room, much better economy but still maintains the renowned performance and famous superb handling. ‘An unparalleled proposition for our retail and fleet customers, quite simply it is the best 3 series yet!’ Steve Penman, Elms Cambridge
Their view:
Our view:
‘The 3 Series Saloon is the heart of the BMW model range. It typifies BMW engineering and incorporates BMW EfficientDynamics to make this car not only renowned for its driving dynamics, but also its class leading efficiency. It represents 20 per cent of BMW sales with over 28,000 units registered in the UK in 2012. ‘It is an executive saloon with a strong demand from the corporate market, not least because of the low VED bands and low BIK values.’ Natasha Newman, BMW medium cars product operations manager
If customers thought the 3 Series couldn’t get any better, they clearly haven’t driven the latest version – BMW has firmly moved the game onwards and upwards. Surely the driver’s car of its class, the 3 Series has well-weighted, responsive steering, roll free handling and high levels of grip. However, the most impressive stand out feature has to be the ride, although to make the most of it, customers will have to add the costly adjustable suspension. The 2.0-litre diesel engine is also a gem, with plenty of torque, decent refinement and low 120g/km emissions.
3 SERIESSTATS
28,000 Approximately 28,000 3 Series Saloons were registered in 2012 – that’s class leading. 38 | CarDealerMag.co.uk
xDrive The 3 Series Saloon range now includes models with xDrive, BMW’s all-wheel drive system.
109
The BMW 320d EfficientDynamics model has CO₂ figures of just 109g/km.
AWARDS It has won a number of awards including Business Car of the Year 2013.
Model: BMW 320d Sport Price: £29,410 Engine: 2.0-litre, four-cylinder, turbodiesel Power: 181bhp, 380Nm Max speed: 146mph 0-60mph: 7.5s MPG (comb’d): 61.4 mpg Emissions: 120g/km
1.6m Previous generation (E90) sold approximately 1.6m units worldwide.
Mercedes-Benz C-Class Overview:
The latest of three-generations of the C-Class boasts high levels of standard equipment and as you’d expect is safe too, with seven-airbags and stability control as standard. There’s room for four and a capacious boot, which is one of the biggest in its class. Add in the large choice of petrol and diesel engines, plus the estate and coupe bodystyles and there’s sure to be a C-Class to suit most buyers.
Their view: ‘Since the introduction of the 190E in 1982, the Mercedes-Benz compact saloon has been one of the most innovative and best-selling models in the range. With CO2 from 109g/ km, class-leading levels of safety and three UKspecific trim levels, including the Executive SE
with high specification levels ideally suited to business users, and the AMG Sport Plus with AMG bodystyling to further enhance the visual appeal, the C-Class continues to appeal strongly to both the private and retail sectors.’ Glenn Stanton, C-Class product manager
Your view: ‘For more than two decades, we’ve found the C-Class to be extremely popular with our customers, due to the quality, versatility and performance of the range. People are always impressed with the diverse offering of the C-Class with a model for everyone, whether a Coupe, Saloon or Estate. It meets many company car CO2 requirements, offering impressive fuel consumption. I cannot remember the last time
a customer came to us with what they wanted and the C-Class not meeting their brief.’ Matthew Wrigley, group marketing manager, Mercedes-Benz Retail Group.
Our view: Now in its fifth year, the current C-Class does begin to feel dated in this company, especially against the BMW. The four-cylinder 2.2-litre diesel engine fitted in our Executive SE trim test car didn’t help either, feeling rough and unrefined. Previously, Mercedes-Benz was best known for its impressively high standards of build quality, but considering the premium price, the fit and finish of our test car was nothing special, sadly.
the knowledge Model: Mercedes C220 CDI BlueEFFICIENCY Executive SE Price: £28,305 Engine: 2.2-litre, four-cylinder, turbodiesel Power: 168bhp, 400Nm Max speed: 144mph 0-60mph: 8.4s MPG (comb’d): 68.9mpg Emissions: 123g/km
C-CLASSSTATS
35 Since the launch of the current C-Class in 2007, it has made up 34.5 per cent of total Mercedes sales.
220
The most popular engine is the 2.2-litre diesel, tested here.
2,000 sport auto
A total of more than 2,000 new parts distinguish this version from its predecessor.
More customers opt for the Sport trim than any other specification.
The most popular transmission is automatic.
CarDealerMag.co.uk | 39
Feature.
VW passat
the knowledge
Overview:
Your view:
Volkswagen’s compact executive alternative, the Passat, appeals to buyers because of its stylish good looks and versatile, spacious interior. Add in the credibility of the Volkswagen badge, the high build quality and the fact it is fitted with capable, frugal engines. Being such a great all-rounder, it is no wonder that it’s so popular with business buyers and has won so many awards since its launch in 2006.
‘The Passat is as important to our business at Inchcape Volkswagen Chester as it is to Volkswagen UK. While the majority of sales are to fleet buyers, it is very much a family vehicle, which means we get the opportunity to introduce the whole of the customer’s family to the Volkswagen brand. ‘The new Passat Highline model has been particularly well received, especially because of its high standard equipment levels. Items such as the standard 2Zone climate control and touchscreen sat-nav really add value to the car – they’re features that customers benefit from every day.’ Richard Lawson, corporate fleet manager, Inchcape Volkswagen Chester
Their view: ‘The Passat is one of our key models, principally targeting business users, and that’s why it’s such a popular choice in the fleet market. We’ve endeavoured to ensure it is well-equipped and geared towards both driver comfort and safety. We recognise that for business drivers, the Passat is not just a car, it’s more an office space. Last year, we sold 11,220 Passat Estates and with a 15.9 per cent market share, we were number one in its class. The saloon sold slightly less with 9807 sales and 6.66 per cent market share in 2012 but with the saloon occupying the same territory as the Volkswagen CC, total sales in 2012 totalled 15,171 – a 10.3 per cent market share and number four in its class. Simon Lynch, Passat product marketing manager
Model: Volkswagen Passat 2.0 TDI Highline BlueMotion Price: £22,510 Engine: 2.0-litre, four-cylinder, turbodiesel Power: 138bhp, 320Nm Max speed: 131mph 0-60mph: 9.8s MPG (comb’d): 47.9mpg Emissions: 119g/km
Our view: The Passat is one of the pricier cars in this group, but this well-equipped compact executive comes with the enviable reputation that only the Volkswagen badge carries. Undemanding to drive, if the Passat offered more driving involvement it could be class-leader. Until then, you’ll buy the BMW for fun, but we do like the stylish, modern looks inside and out and the efficient engine should prove cost-effective to run.
PASSATSTATS
CLEVER 44,000 Passat features nifty tech like Automatic Distance Control, and side scan lane change assist.
40 | CarDealerMag.co.uk
Current generation of Passat, has sold nearly 44,000 units in the UK.
15.9% Estate is number one its market – it holds a 15.9 per cent share.
OPTION Park Assist which can parallel park the vehicle by itself is one of the most popular options.
15m 15m-plus have been sold since it was introduced in 1973, in over 100 markets.
Honda Accord Overview:
The Accord, like the Civic is one of the bestknown Honda models ever produced. Originally launched in 1976, this is the eighth-generation version, which dates back to 2008. The current saloon and estate versions feature a range of powerful and smooth diesel and petrol engines, a comfy, spacious interior and a long list of standard safety kit including the latest electronic braking and anti-skid features.
Their view: ‘With cleaner engines, a sharper look and a smoother drive, the revised Accord continues to be an enticing proposition in the competitive D-sector. All engines in the line up
meet Euro 5 legislation, and its sector-leading package of safety systems rivals most E-sector cars. Roughly two thirds of our Accord sales are coming from the corporate sector, where this level of refinement and low running costs usually come at a premium.’ Jamie Woods, product lifecycle manager, Honda UK
Your view: ‘Customers who purchase a Honda Accord from us often tell us; from the moment they step into the Honda Accord they’re blown away with the quality of the build and the very high spec of the car. Plus they’re always surprised at the low cost of ownership in comparison to other brands.
These are just a few reasons why our Accord customers are so brand loyal.’ Jamie Miller, dealer principal, Avonvale Honda Solihull
Our view: Arguably more up-market than a Ford Mondeo, the Accord is powered by a choice of petrol and diesel engines. All are smooth and strong performers, the long list of standard safety kit is also attractive. Yet despite all this, it’s difficult to recommend the Honda. The high and lowspeed ride is unsettled, too much noise enters the Accord’s cabin and the interior isn’t built well enough to justify the price.
the knowledge Model: Honda Accord 2.2 I-DTEC ES Price: £24,325 Engine: 2.2-litre, four-cylinder, turbodiesel Power: 148bhp, 192Nm Max speed: 132mph 0-60mph: 10.8s MPG (comb’d): 50.4mpg Emissions: 168g/km
ACCORDSTATS
1992 First Honda car to be produced in the UK (Swindon, 1992).
81
In 2012, 77 per cent of sales were of the saloon, 81 per cent were diesel.
38
In 2012 ES-GT was the most popular grade representing 38 per cent of all saloons sold.
GLOBAL The Accord is a global product, however it takes a different form in US to Europe.
1976
First model Accord produced in Japan in 1976, first produced in US in 1982. CarDealerMag.co.uk | 41
Feature.
Seat Exeo
the knowledge
Overview: Could it be a case of déjà vu? If you think you’re looking at a refreshed, Spanish version of the last Audi A4, you’d be right. This is where the Exeo scores, as it offers a high quality compact executive ownership experience for the price of a normal family car. All Exeo models are wellequipped and unlike the styling, there’s a large choice of the latest Volkswagen Group petrol and diesel engines?
Their view: ‘The Exeo is a pivotal car for Seat, because it enabled us to enter into the traditional fleet market and broaden our customer base significantly. Its exceptional quality offered buyers – and continues to do so – a true executive-level car, with executive-level specification, but without the associated costs. ‘And because we’re always looking to improve, we’ve strived to make the Exeo more appealing throughout its life-cycle. This is typified by the addition of the SE Tech and Sport Tech specifications, which add all manner of additional equipment for very little extra cost. ‘The introduction of the Ecomotive versions during 2012, too – which brought CO2 emissions down to just 117g/km – is another example of the ways in which
EXEOSTATS
8,249 47
The number of Exeos have been sold since launch.
42 | CarDealerMag.co.uk
The most popular Exeo is the 2.0 TDI SE Tech. It accounts for 47 per cent of sales.
we’ve kept the Exeo fresh and appealing.’ James Buckell, Exeo product manager, Seat UK
Your view: ‘The Exeo has proved a valuable addition to the Seat lineup, increasing the brand’s appeal amongst business users who see the model as a low cost way in to executive, high-specification motoring. The Volkswagen Group roots of the vehicle adds to the appeal and it’s really done wonders at convincing customers that Seat makes high quality products. We’ve found that test drives have been the key to Exeo’s success, as once customers get to drive the car themselves, they invariably buy it.” Darren Williams, dealer principal, Grants of Braintree
Model: Seat Exeo 2.0 TDI 143 SE Tech Price: £22,310 Engine: 2.0-litre, four-cylinder, turbodiesel Power: 141bhp, 319Nm Max speed: 134mph 0-60mph: 9.2s MPG (comb’d): 54.3mpg Emissions: 129g/km
Our view: Yes, the Seat-ised Audi does feel a bit dated in this company, particularly inside where there’s some poorly placed switch gear. The reason it’s still worthy of consideration, is the 141bhp diesel that was fitted to our test car averages over 50mpg, yet only emits a competitive 123g/km of Co2. We also like the build quality and standard kit. We do however feel the interior could be more spacious and the refinement better.
91
91 per cent of Exeo buyers are male, with eight per cent female.
COLOUR The most popular Exeo colour is phantom black.
77 77 per cent of Exeo sales are to conquest buyers. worldwide.
Verdict O
wner of the wooden spoon and finishing last, has to be the Honda Accord. It might have the slickest manual change this side of the BMW, but the Accord feels old beyond its years, is very average to drive, cabin quality is poor considering the price and the high CO2 figure means the Honda costs the most to tax. It might finish fourth in this test, but this isn’t necessarily representative of the Seat Exeo’s abilities, as it’s up against some tougher, more modern opposition. In our opinion, the Seat feels more specially built than the Mercedes, the handling tidy, its diesel engine punchy and the 129g/km CO2 figure is competitive. It’s a ‘could do better’ third place for the Mercedes C-Class. For starters, the 2.2-litre diesel engine might be rapid, but it lacks refinement and feels harsh and rough. The slow six-speed manual transmission fitted to our test car didn’t help either. For a
Mercedes, the C-Class’s build quality isn’t that impressive. Almost taking the top spot is the Volkswagen Passat. It might be a re-hashed 2006 design, but we like the image, build quality and the fact it still looks reasonably modern. Surprisingly, 138bhp feels enough in this company and BlueMotion Technology means it’s cheap to run too. If it was more fun to drive, it could have taken top spot. The winner is the most complete car of this group – the BMW 3 Series. Great to drive as you’d expect, but there’s much more to the 320d than that. More impressively, it’s the cheapest to run with 119g/km CO2 emissions. The only slight disappointment is that in Sport form, as tested here, it is the most-expensive and customers would be advised to specify the optional adjustable suspension to create the perfect baby Bimmer. [CD]
THIRD - Mercedes-Benz C-Class
SECOND - Volkswagen Passat
WINNER - BMW 3 Series CarDealerMag.co.uk | 43
Feature.
Daily grind In a leftfield look at life in a dealership we spend a day documenting the world through the eyes of a coffee machine
A
llow me to introduce myself. I’m the Kenco ‘Singles’ RB482 premium beverage solution – sustainer of the masses, friend to those in need, and chosen coffee machine of lounge facilities worldwide. I don’t live in a five-star Moroccan hotel, though. I’m not even in a Ramada Jarvis near Nuneaton. My placement is in none other than Bishops Nissan in Guildford – a busy little dealership in Surrey’s second most well known town (you can thank Ali G and Staines for that).
Car Dealer Magazine – everyone’s favourite coffee table read (and I can testify to that as I see them pick it up and laugh at Big Mike) – kindly asked me to write a diary for a day on what goes on in my little world. Being the kind of hot beverage giver that I am, I duly noted the comings and goings and stored them in my faultless memory. Car Dealer wanted the inside track on life behind the plate glass doors. So here it is, warts and all. ‘Enjoy’, as my front dot-matrix display might read.
8:45
9:12
8:55
9:17
Another rainy Thursday, then. It’s all going on in here though – people are scurrying about all over the place.
Man outside is busy opening all the cars’ boots on the forecourt. Seems to be something these dealer people do every day. Five years I’ve sat here and I still don’t know why. Perhaps it’s some sort of Norse-like ritual.
9:05
First customer of the day has wandered up to the servicing desk. He’s complaining that the traffic outside is bad. We’re in Guildford. It’s 9am. All I’m programmed to do is produce hot water and even I could have told him that.
9:10
A mysterious man with a Nissan-branded fleece has appeared in the waiting area. He’s typing furiously on his laptop. Bet he’s on Facebook. 44 | CarDealerMag.co.uk
Second customer has appeared at the service desk. Apparently levels of traffic will be today’s small-talk subject of choice. Goodie.
Have just noticed mysterious man’s GTR-branded laptop case. Either he’s from head office or this is a man dangerously obsessed with Nissan.
9:20
Something dreadful has happened. A programme called ‘Wanted Down Under’ has appeared on the television.
9:33
Customer number three has appeared. He’s wearing open-kneed jeans and Caterpillar boots. I reckon he’s got a Oh it’s nice – you’d love it. Bishops Navara.
My home
Nissan is on Walnut Tree Close in Guildford. With a truly lovely selection of staff, they’ve been trading for 20 years, though I’ve been providing them caffeine-based drinks for just five of those.
9:40
Sodding programme about Australians is
still on. They’ve all started crying now. Maybe if I concentrate REALLY hard I can fuse the showroom electrics and it’ll go away. Then again maybe not.
9:56
Overheard Caterpillar-boots-man talking on the phone about hiring a wood chipper. Water cooler and I have placed a bet on what car he’s having serviced. I’m sticking with Navara, but water cooler Will thinks Micra C+C. I’m the one with the microchip – can you tell?
9:59
Man with Nissan fleece has been offered a coffee. Dealership worker has gone off into another room to get it.... wait, what?
10:00
Caterpillar-boots man has been handed back the
11:06
A rather well-spoken young woman has wandered over. She’s opted for a Carte Noire and is drinking it without complaint. See, manners cost nothing.
11:40
Well-spoken woman has been joined by technician man. Apparently her car needs new spark plugs. Had a chat with water cooler and we’re sure that plugs shouldn’t be sparking. Sounds dangerous, I’m worried for her safety. Water cooler is still wondering what a plug is.
12:10
Dealership man is giving someone a courtesy call about their new Juke delivery. Car on its way but ‘details about the plates to follow’, apparently. Can’t help wonder what they’ll be eating off until then.
10:20
Elderly woman in a pink coat has edged her way to the service desk. I’m saying Micra service and MoT. Water cooler reckons she’ll have the haddock and chips. Don’t think he knows where They were built back in the mid-90s he is. (bit be
The premises
10:24
A new man has begun eyeing up a Qashqai. Well I say eyeing up, he seems to be circling it simply to check it’s all there.
fore my time) but the y’re really rather nice. There’s sales, parts and servicing all un der one roof, so there’s always some thing going on. Which, unfortunately, means I can’t often sneak in a qu ick nap.
10:27
Qashqai man is talking to a salesman. Overhear him ask ‘A 1.5litre diesel... That’s a slightly interesting size isn’t it?’ No. No, it isn’t.
10:34
Damian Lewis is here!
keys to... a Navara! Tried to gloat to water cooler but he’s gone catatonic. All I hear is glugging noises. Weirdo.
10:01
10:36
Damian Lewis is picking up a timing belt for a Primera! Well, I never.
10:39
Dealership worker has returned with coffee for mystery Nissan man. Coffee from another machine, in another room. I’m livid.
Come to the conclusion that it’s not actually Damian Lewis. Unfortunately, water cooler sensed my prior excitement and has convinced himself that a nearby pot plant is Clare Balding.
10:05
10:45
Dealership worker is now attempting to empty me. THAT’S RIGHT, I EXIST! Going to spit some used grounds on the floor in protest.
10:11
Man in a camel jacket is looking at an X-Trail. He’s asked to look under the bonnet. Bit strange.
10:13
Wow, he’s really having a good look around in there. Think he’s trying to measure the two-litre engine with just his eyes.
Qashqai man has wandered over to me for a coffee. ‘Oh, not Nespresso then...’ he mutters. Yeah, and you’re not George Clooney are you. Sod off.
10:50
Qashqai man has opted for Gold Blend. He’s now staring down at it with disdain. I’ve changed the text on my display from ‘Enjoy’ to something more obscene. He hasn’t noticed.
12:36
There’s a Leaf parked in front of me. Just noticed that one of the wheel centre caps is slightly off-centre. That’s going to annoy me for the next six months now. Crap.
13:00
Receptionist women are chatting about their new toys. One has something called a ‘Galaxy’ which is apparently better than an ‘Eye Phone’. Was certain until now that a ‘Galaxy’ was actually a large Ford. Or a brand of chocolate bar. They also speak about ‘50 Shades of Grey’ – forgive me, but I know the Nissan colour palette and there is in no way it houses so many dull hues. Confused.
13:20
Salesman is attempting to print off an invoice, but the paper appears to have jammed. Stupid photocopier, always has been an attentionseeking so-and-so.
Me
I’m not one of those daft espresso mac hines – no, no , they don’t ha lf make a fuss . I take capsules and, not to bl ow my own trum pet or anything but, that mea ns I’m better. I just am. Coffee? Hot chocolat e? Tea? I make it all. But not soup. NEV ER soup .
CarDealerMag.co.uk | 45
46 | CarDealerMag.co.uk
Feature.
Coffee time 13:25
Photocopier is now giving me evils. Pretty sure it and the fax machine were laughing at me earlier, too. Think I heard them say my coffee tastes like cardboard. Bit rich coming from a pair of machines that chew paper all day.
14:00
Leaf wheel cap still off-centre.
14:37
Just as Only Fools and Horses comes on – the one acceptable programme broadcast in front of me today – a salesman comes over and changes the channel. Definitely going to fuse something in a minute.
14:54
An older chap has wandered over to the coffee area. Just dropped off a Note I think. Now enjoying a PG Tips. He even says ‘Ahhhhh’ after each sip. Good man – obviously a professional tea drinker.
15:10
Older chap is chatting to another customer. Apparently he’s been driving since 1946. Not bad.
15:15
Sounds like he’s had an impressive run of cars, too. Almost entirely Nissans way back to a Datsun Laurel. I’d be intrigued, if I was programmed to feel that emotion.
15:20
Second man has settled himself over in the sales area. He’s trying to make a payment on his debit card but bank is having none of it. Oh dear.
15:24
Man is becoming increasingly concerned with his lack of banking progress. Don’t think he’s buying a car, though. Or at least not much of one, since the amount required seems to be £428.62. I know a Pixo is pretty good value, but I’m sure you can’t get one for that.
The staff
all I know I’m biased but they’re ,152 hours 46 for e her sat delightful. I’ve y customer. and I rarely see an unhapp hy and the Sales chaps aren’t too pus come and n ofte lot ts service and par what lain exp to ers tom speak to cus they’re up to.
15:35
Mystery of the malfunctioning debit card has been solved. Turns out the transaction was blocked – not because the funds weren’t there but because he hasn’t actually used the account since Harold Wilson was prime minister.
Cars
There’s room for 45 used ones outside – that’s right, I’ve co unted – and there’s now six new ones ins ide, too. Heard one of the staff talkin g about squeezing another in. Had no idea these ‘Nissan’ people made so many different shiny metal things.
15:50
ATTENTION, I’m now DANGEROUSLY low on UHT milk. Going to flash a red light until someone notices.
16:30
An... interesting... woman has entered the dealership. Trying to find a better way of describing her than ‘Vicky Pollard’ but struggling.
16:35
Ms Pollard is frantic with worry over her Micra. Technician and her good self have ventured outside to take a look.
16:40
Vicky is back inside, now talking to (I presume) her other half. I’m guessing purely from what she’s yelling down the phone, which is mostly expletives daisy-chained with the word ‘babe’.
16:49
No-but-yeah-but is still on the phone. Seems to be spelling out the situation to her confused and/ or deaf partner. ‘The car was burning oil? Yeah? I was at the train station? Yeah? Now I’m at Nissan? YEAH? GOD...’ Not sure what she does for a living, but I’m willing to bet it doesn’t involve hostage negotiation.
16:52
Milk warning light still flashing, note to self: I NEED A BUZZER!
17:00
Man has popped in to collect his X-Trail. While he waits, he’s decided to walk about the dealership and have a good nose around... an X-Trail!
Seriously, why do people do this? You know what it looks like, you just drove here in one, now sit down and stop fidgeting. Honestly, they’re worse than children. Have a coffee. Actually no, that’d probably exacerbate the problem.
17:35
Receptionist women are heading off for the day. Sometimes think I’d be good at the end of a telephone. Until I remember I can’t touch type. Or talk.
17:48
Uh oh. Someone’s left a car parked outside the forecourt and has gone home, key in pocket. This should be good. LOVE a bit of drama.
17:50
Well that was rubbish, there was a spare one in the safe. Unless someone switches on ITV in time for Emmerdale I’ll be forced to throw myself off this worktop out of sheer boredom.
18:15
Looks like it’s time for the salesmen to hit the phones hard. Or at least that’s what one of them said. Sincerely hope they don’t – that’s tantamount to abuse. Water cooler and I are in a union, we know our rights. We are both scared.
18:54
Oh, hang on, lights are going off. And about time too, I fancy a nap. Wouldn’t have thought I spent all day having caffeine running through my system, would you? Ha! Aha! Ha... I’m wasted in here… [CD]
Thank you note Thanks ever so much to Bishops Nissan in Guildford for helping us with this feature, and letting us invade for a day! 0844 846 6902 bishops-nissan.co.uk CarDealerMag.co.uk | 47
focus on.
TRACKER
Lost and found TRACKER
W: tracker.co.uk T: 0845 604 6028
W
hile it’s true new car sales seem to be on an unrelenting upward march, dealers are all too aware that pressure on turning a quick and tidy profit is ever increasing. In times such as these, it’s the canny dealers who are feeling the pain less but are still returning a decent profit. But such tactics needn’t be dramatic – offering more products and add-ons at the time of purchase and during the ownership cycle can be useful profit generators. Like tracking systems. Add-on products like paint and fabric protection and warranties are tried and tested, but dealers should be looking at tracking systems as the next ‘big thing’ in generating profit. Leading this trend is a company whose name just trips off the tongue – TRACKER. Market leaders for nearly 20 years, TRACKER has sold more than one million tracking units in the UK alone, and can count every police force in the country as a partner. That’s not forgetting the amazing statistic that 95 per cent of vehicles fitted with a TRACKER are recovered to the owner – and 86 per cent of these are returned within 24 hours. But the firm is turning its attentions to dealers and wants to form some successful and long-lasting relationships. ‘We already have a good presence in the dealer market on the prestige side – BMW, Mercedes, Lexus and many more – but we have, within the last few months, put a lot of time and energy into making it easier for dealers to sell TRACKER,’ David Wilson, TRACKER’s sales and service director tells us. ‘This is the message we want to get out to dealers: There is money to be made if you sell TRACKER.’ It couldn’t be any plainer than that. The firm is looking to work with all types of dealers across the UK, and is both hoping to grow the relationship they have with their existing dealers, and to win new business with franchises they haven’t worked with before. These include dealers representing Nissan, Honda, Vauxhall and many others. ‘We want to work with all types of dealers across the board,’ says Wilson. ‘We are keen to talk to dealers who aren’t aware of the profit opportunities TRACKER products offer and also the dealers who we have never spoken to in the past. We have 48 | CarDealerMag.co.uk
traditionally worked with prestige dealers, but we know there is a great opportunity in the used car market.’ TRACKER has a range of three highly sophisticated products that are perfect for all types of customer. But the really good news for dealers is the profit benefits on offer. ‘We can offer not just traditional margin but also a percentage of the subscription that dealers collect for us,’ explains Wilson. ‘We’re moving into an area where it is now just as profitable for a dealer to sell a TRACKER as it is for them to sell paint protection or GAP products.’ TRACKER is on a mission to not only make dealers aware of the profit potential their products offer, but also to educated dealers that TRACKER units are for all types of dealer, regardless of the stock they sell; and there IS consumer demand for
tracking systems. While there was once a time where consumers knew more about tracking products than dealers did, that’s now changed, says Wilson. ‘Up until now, there hasn’t been a lot in it for the dealer. Dealers have been quite happy to let that sale leak out of the showroom onto the internet. But now we are trying to engage with dealers in different ways, so it’s not just about ‘why don’t you sell our products?’, but it is also about the partnership in going forwards.’ There is also the feeling throughout the dealer network that there is little point in selling TRACKER
Market leaders
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TRACKER has been leading the way in the field of stolen vehicle recovery (SVR) and vehicle telematics since 1993. Acting like a homing device, TRACKER’s innovative SVR systems can incorporate both GSM/GPS and uniquely, VHF technology in one unit. Used by all police forces in the UK, TRACKER’s technology enables the police to pin-point a stolen vehicle, even if it is hidden in a container or garage where a system based solely on GPS could not operate. It even overcomes GPS/GSM jamming, a technique frequently employed by organised gangs of car thieves. To date TRACKER has recovered more than 21,582 stolen vehicles – worth a staggering £466m – since 1993. Each month TRACKER helps to recover an average £2m worth of stolen vehicles. It has also led the police to arrest over 2,249 car thieves. December 2012 saw the firm recover 65 vehicles with a total value of £1.26m
We are keen to talk to dealers who aren’t aware of the profit opportunities our products offer Proof it works
and there is little demand for it – but this is wrong, believes Wilson. ‘Selling and partnering with TRACKER can make a real difference to a dealer’s performance – and that is somewhere we have never been before and somewhere where our competitors cannot go.’ TRACKER’s new approach to selling is also representative of a changing marketplace. However, don’t think TRACKER is only suitable on new cars at the point of sale. Used cars and workshops can offer more bites of the cherry and can represent just as profitable sales.
TRACKERs can fit in really well is in the workshop department, and can present a massive opportunity. When a car comes in for a service, the fitting of a TRACKER unit is not only convenient but it’s also a good conversation for a dealer to have with a customer. ‘Traditionally, TRACKERs have been sold on the showroom floor at the point of sale. But when we look at the figures, more than half of TRACKER sales are on used cars. This would suggest there is a real opportunity for TRACKERs to be sold post-sale,’ says Wilson. So there it is. In times of decreasing profit margins, dealers who are turning to profitable addon products are really reaping the rewards. Not only do dealers have more money in their pockets, but customers have peace of mind that if trouble does strike – they’re in the perfect position to get their pride and joy back. [CD]
Thieves are changing the ways they are stealing cars and are now targeting homes to grab car keys. David Wilson said: ‘The problem of car thefts involving keys has been rising for a number of years. We saw the figure rise from 74 per cent to 84 per cent in just two years, clearly demonstrating how stealing a car by simply breaking into it has become much more challenging for criminals – leading them to find other, more invasive ways of stealing a vehicle. The reality is that many criminals now need to break into a home to steal vehicle keys.’ But sometimes thieves don’t even have to break into a house. In January 2013, Manchester United midfielder Paul Scholes had his Chevy Captiva stolen from his driveway as he defrosted the windscreen. The thieves pounced after the footballer left the engine running on his Captiva to melt the ice while he went back indoors. Known as ‘frostjacking’ this type of theft rises during any cold period. It just goes to show that thieves will do anything to steal a car. CarDealerMag.co.uk | 49
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BuyYourCar
The one-stop shop for all BuyYourCar
C
W: buyyourcar.co.uk T: 0845 644 8220
omparison sites – we now rely on them for buying so many different products that it almost seems strange to buy a product or service without quickly checking its price against the others on offer. Be it insurance – for car, home and so on – telephone and broadband packages, or even consumer electronics like televisions and laptops, getting a comprehensive list of where to buy from and for what price is now effortless. Even new cars can be compared like-for-like through such websites. So why, then, do consumers find pricing up an MOT or service so difficult? One website, BuyYourCar.co.uk, seems to have the answer. Starting off as a car buying portal, specialising in both new and used cars, BuyYourCar is no stranger to helping customers find the best place to invest their money. ‘From the very start, we wanted to be in all-car portal,’ David Long, BuyYourCar’s managing director tells us. ‘A lot of sites tend to concentrate particularly on either new, used or contract hire sales – we cover all three. In fact, we were one of the first to do so.’ Why choose to diversify? Long says it’s simple – he wanted to create a one-stop shop for the automotive trade. ‘My background is in the automotive market, and I’ve worked within various different areas – I’ve run used car departments, sold new cars, set up fleet departments, you name it – and that’s what I used as a bit of inspiration for the whole site. Essentially, the idea was that BuyYourCar site would work for just that sort of person, and cover the entire market.’ It’s this background that has helped the firm become the success it is today, and now it’s keen to go further – covering even more
50 | CarDealerMag.co.uk
dealership operations. ‘If I look back to when I was in the car trade pre-2006, I ran a fleet department. That fleet department was fairly large, selling between 50 to 100 cars every week. So that was probably 100 hours of business through the service departments on PDIs alone. ‘The market place has changed dramatically since then, though, and those have almost disappeared. New car sales is down, used car sales are too, and that’s not fantastic news for service departments.’ The way forward, Long suggests, is to look at targeting new customers in a new way – getting on board with a brand new service that makes customers’ lives easier. ‘There is no comparison site within the UK where somebody can go and enter their make, model and location and by proximity it tells them the garages that are closest to them, the services that they offer, and of course the price. ‘The general public has this perception that main dealers are expensive – so much so that they won’t go in, or even pick up the phone to ask about pricing. Similarly, dealers – unintentionally, I’m sure – can be a little bit quiet about their servicing offers. The idea of this new section is to broadcast these offers and services, a bit drive more traffic back to the local dealers and garages.’ It’s not simply good news for dealers, of course – customers benefit too. ‘We generate thousands of used car inquiries, day in day out for things like new and used car sales,’ Long tells us. ‘Through listening to calls in those sections, we found that – interestingly – quite a lot of the phone calls were actually for service and MOT enquiries, and the general public were ringing up purely from having spotted an ad for a used car. ‘Quite strange really, and it kind of emphasises how difficult it is for the general public to go onto Google and find what it is they’re looking for in terms of servicing and so on. ‘With car insurance it’s a given
fact that you’ll go to a comparison site and get a quote, just like that. Customers feel like they’ve shopped around and got the best deal, and as a result they’re satisfied that they’ve done well out of performing the search. So, dealers get enquiries, customers feel like they’re about to pay a reasonable price – win win.’ Where BuyYourCar’s function does differ from the average comparison site, however, is in the way they list results. ‘It is not about finding the cheapest overall,’ says Long. ‘Because the cheapest overall is almost unimportant. With car insurance, it doesn’t matter where they are – the company could be on the other side of the world. With MOT and servicing, no-one will travel more than about three or four miles. So it’s more about getting garages back in front of their local customer.’ Long says the feedback for the service has already been very positive, and that’s before the features have really had a chance to bed in. Launched during mid February, the site is already quite
things automotive other services comprehensively populated though – with a wide variety of garages and dealerships listed for most major UK towns and cities. The cherry on top of the service? Cost. ‘We are only charging £20 per month,’ says Long. ‘One MOT will pay for it. We have no contracts with any of our customers, we have no tie-ins, we have no cancellation fees. We have always said to the client “If it works for you, carry on and if it doesn’t, just stop”.’ ‘On top of that, as an additional service, we will also build mini-sites for each business, and the reason behind this is quite simple – dealers and garages can’t afford not to have a web presence.’ For that, BuyYourCar charge just £15 a month – arguably a low price for such an invaluable investment. So, what’s BuyYourCar’s advice to those who aren’t currently making the most of advertising their services on the web? ‘Get on it. There’s absolutely nothing to lose, and you who knows how much service bay business you could be missing.’
BuyYourCar are something of a unique website: offering not just adverts for new or used cars, but both – and much more to boot! Buyers can send enquiries for car leasing, compare prices for car parts, and even look at stats, reviews and more. The firm’s dealer services are also comprehensive – with listings on the site coming with the option of local-dial call tracking. Not only does this allow dealers to measure just how successful a campaign has been, but also allows the option of monitoring the calls coming into a dealership – aiding the process of staff training, and ensuring that all enquiries that enter the four walls of the showroom are dealt with correctly.
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There is no comparison site in the UK where you can go and enter the make, model and location, and by proximity it tells them the garages that are closest. CarDealerMag.co.uk | 51
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Success Stories
Welcome N
o one would deny the last five years have been a tough time for not only the motor industry, but the economy in general. In that time the car trade has experienced new car sales rising and falling like a roller coaster, and the short lived boost of the scrappage scheme. Dealers have gone bust and car manufacturers have ramped up their expectations. But there are success stories. We’re not blowing our own trumpet here but Car Dealer was set up in February 2008 when the economy was at its worst. Five years later we are now Britain’s most popular trade magazine with approximately 16,000 readers across a variety of platforms. That’s why we decided to celebrate those businesses that are also flourishing in their formative years – like those on the following pages. They’ve got here through a combination of a positive attitude, foresight and unstinting hard work – and we feel they should be celebrated. That’s why we have created this Success Stories feature. All of the following companies are successful in some way or another. We’ve chatted to them about how they’ve got to where they are today – and why you should be working with them. Here’s what they have to say...
What’s inside? Auto Trader
P55
Turn to the market leaders for your digital needs
CAP
P57
Get ahead of the game with this successful firm
Tradeouts
P59 Maximise your profits by working with this trade-to-trade sales website
GRS
Dynamic remarketing firm which can put you in pole position
P61
Autotrade-mail
P63 Meet the firm which knows what it takes to maintain good relationships
Supagard
This 25-year-old company knows what makes dealers tick
P65
Warrantywise
P67 Work with the people who provide the high-quality service
James Batchelor Editor
GForces
Turn to the hard-workers for your digital solutions
P69
CarDealerMag.co.uk | 53
As consumers access more information online, they now only visit 1 or 2 forecourts compared with 7 in 2001. So their buying cycle is shorter than ever. Live Chat allows you to speak to buyers at the earliest opportunity, to make sure that it’s your forecourt they visit. A recent trial resulted in over 50% of chats converted into leads!
To use Live Chat to turn your web traffic into hot prospects, speak to your rep. 54 | CarDealerMag.co.uk
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Success Stories
Helping dealers to buy and sell cars since 1977 AUTOTRADER
T
W: Autotrader.co.uk T: 08450 712655
hink buying and selling cars – think Auto Trader. Despite a number of rival new and used car classified portals appearing over the past few years, Auto Trader has continued to hold its number one spot in the marketplace and arguably holds the enviable title of being the ‘go-to’ place for car buying and selling in consumers’ minds. The brand – part of Trader Media Group – has been around since 1977, having become renowned for classified magazines and more recently attracted more than 11 million unique website visitors per month and in so doing increased its market share to 49 per cent. But why is it such a success? It’s a success because the brand has invested in new technology and understood changing consumer behaviours. ‘It is primarily about the level of investment we have
put into understanding the consumer and how they interact with digital channels,’ explains Trader Media Group’s B2B marketing director, Perran Moon. ‘The way consumers have changed their searching and buying behaviour in recent years has been extraordinary. We’ve understood what that consumer behaviour is doing, how the consumer is becoming increasingly digital, and how consumers are buying cars. This has evolved massively over the last five years. The convenience of mobile devices and the way consumers can access the internet – for example through WiFi, at McDonalds and Cafe Nero – means extensive research is possible anytime and anywhere.’ Take a look at the numbers, and you’ll see how great that change in consumer behaviour has been. ‘The number of mobile unique users in 2010 was
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There is still a huge bit of the cake available; there are still an awful lot of dealers whose digital presence is not as effective is it might be.
860,000 per month,’ says Moon. ‘Contrast that to January 2013 and the number is 3.5m; one in four searches on Auto Trader is via a mobile device – that’s a mobile phone or a tablet. Five years ago that would have been completely unheard of. And Auto Trader has led the charge towards digital. ‘We are a media company,’ says Moon. ‘We consider it a core part of our ethos to understand how consumers are using all media channels in order to more successfully promote dealers’ stock.’ ‘We have been successful, but we are absolutely not complacent because there is a long way to go. We are certainly not at the crest of this wave of changing consumer behaviour – we are only part way up, and more opportunities from the digital consumer will emerge over the next two years.’ 2013 represents a fantastic opportunity for dealers to really reap the benefits of the digital landscape. ‘Those dealers who are fully embracing digital marketing and who understand that their digital forecourt is as important as their actual forecourt are the dealers who are really moving forward,’ explains Moon. ‘There is still a huge bit of the cake available; there are still an awful lot of dealers whose digital presence is not as effective is it might be.’ And with Auto Trader, dealers really can have their cake and eat it, for Auto Trader is in the perfect position to work with dealers. It has a portfolio of tools that allow dealers to make the most of their online classified spend. For instance, there’s free response tracking; free Pulse and Match reports which allow dealers to track performance and return-on-investment and Live Chat; and there’s a recently-launched portal which proactively indicates to dealers where they should be focussing their online efforts and where they could be better performing. That’s not forgetting the regular regional seminars, free to all Auto Trader dealer customers, which give local insight and are personalised to the dealers attending. Moon concludes: ‘As a dealer partner, it is up to us to make sure our dealer customers are armed with all of the insight and information to make sound commercial decisions about what is right for their own business.’ CarDealerMag.co.uk | 55
WWW CAP CO UK VALIVE
The automotive industry’s most trusted source of valuation data is now available to you, wherever and whenever you need it, in seconds. &IND OUT MORE ON 0113 223 2104
/N ANY INTERNET READY DEVICE s $ATA FOR CAR )$ S s 5P TO THE MINUTE l GURES HOURS A DAY 56 | CarDealerMag.co.uk
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Success Stories
Meet the firm that values giving you the best service CAP
W: cap.co.uk/valive T: 01132 232104
S
uccess can come in many different forms for companies – whether it’s taking on new people, introducing new products, or even receiving investment to help grow the business. It’s not often that these positives arrive all at once, though that seems to be just what’s happened for valuations firm CAP. Their new product, Black Book Live, is something that the company is clearly very proud of. ‘It really came from the realisation that the market was moving on,’ CAP’s communications manager Mike Hind tells Car Dealer. ‘We’ve been producing Black Book valuations for the last 40 years or so, and in that time we’ve built up a reputation of being a go-to place for up-to-date vehicle trade valuations.’ Things have changed rapidly over the last decade, though, and the firm realised that sitting still simply wasn’t an option. ‘The nature of print makes life a little difficult when it comes to giving up-to-the-minute valuations,’ Hind explains. ‘Not only are the values static for each month, but because of the delays that come with printing, there was a degree of prediction involved.’ That’s not to say the valuations were way off the mark, but it did mean that traders weren’t necessarily getting the most up-to-the-minute data – something that’s becoming increasingly important. ‘We realised that the format we’d been so used to was becoming less than ideal, and to be honest, the days really are numbered for monthly trade values,’ says Hind, frankly. ‘So we had a little think, and decided to embark on building what’s become the biggest live valuations database around: Black Book Live.’ The result is perhaps the most comprehensive vehicle valuations service imaginable – giving another dimension to what’s widely known as the industry bible for trade prices. Rather than relying on print deadlines, values on Black Book Live really are just that: Live. Expert editors can update values immediately based on the
‘‘
most accurate data available at the time, and traders can keep up to date with the most up-to-the-minute data – all via the internet on CAP’s already familiar Windows and Valuation Anywhere platforms. The new, computerised element of the service and more intensive work involved doesn’t mean CAP has stepped away from the processes that keep their valuations data so accurate, though. ‘In our industry, there has been a trend towards removing expertise’, Hind explains. ‘More and more firms are replacing brain power with systems, but that’s not something we’re doing. ‘We do utilise a lot of computer power analysis to process and quality check the data we hold, but each final value is still signed off by a team of expert editors.’ In fact, CAP have doubled the size of this team – with the task of keeping values up-to-the-minute requiring more manpower than before. ‘We’re very proud of how we’re growing, but still keeping things very much within the same philosophy that we’ve had so far. Our workforce as a whole is up something like 30 per cent, and that in itself is a great success story. When we looked at
There’s no doubt the future looks very bright for CAP.
having our website redesigned we took on a local agency here in Leeds, and they’ve done a fantastic job too.’ Not only has the firm taken on hundreds of new people in the last year, but also a new owner – private equity firm Montague, who paid a cool £175m for the firm. ‘I think the introduction of Black Book Live had a big part in the acquisition’, says Hind. ‘It showed that we weren’t simply resting on our laurels, and that we were moving forward as a company. With that in mind – and a successful five years behind them – what does the future hold for CAP? ‘For a start, I think we’ll be a more well-known company in the valuations market. ‘We’re recognised in the trade industry, but we at present we don’t directly deal with consumers – and that’s something that we’re going to change. ‘We’ll also be rolling out our live service to Red Book – our price guide for commercial vehicles – and we’ll be heading abroad too, introducing our services to other countries for the first time. With those on the way, and Black Book Live proving to be such a success, there’s no doubt that the future looks very bright for CAP.
CarDealerMag.co.uk | 57
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Success Stories
Tradeouts can help you maximise your profits TRADEOUTS
S
W: tradeouts.com T: 01327 589589
uccess doesn’t come easily. In fact, it can take years of hard work to get a business so much as off the ground – let alone turn it into a successful proposition. That’s a statement that was true 20 years ago, back when the economy was in a considerably rosier – the situation today makes life for new businesses even tougher. It’s amazing to think then that, just a year after its launch, the trade-to-trade vehicle sales website Tradeouts has done so very well. We caught up with managing director David Brown to find out just what’s helped the firm get to the position it’s in today. ‘Last year was... well, meteoric really,’ Brown tells us. ‘We’ve been flat out busy keeping up with it all – it’s really exceeded our expectations of what would be possible in the first year of business.’ Indeed, the business has performed so well that Tradeouts’ staff has effectively quadrupled in just a year. Starting off with just two team members, there’s now an office of eight – with the capacity to double that should the need arise. One of the reasons for this success is, of course, the way that Tradeouts has been received within
the industry. ‘The reception from dealers has been fantastic’, says Brown. ‘We’ve really tried to engage with our users, and I think that’s very much paid off.’ It’s easy to see why. Offering a month’s free trial, traders can very quickly see if the site suits their needs – and if not, they can cancel with no quibbles. ‘It’s very much putting our money where our mouths are I suppose,’ says Brown. Users are thoroughly vetted by Tradeouts before they’re allowed to join – with the firm performing checks on individuals, and the sign-up process asking for a VAT number to ensure only the most appropriate companies are allowed to enter. Upon signing up, users aren’t simply given some login details and left alone, though – Tradeouts gives them a dedicated account manager, who can be contacted at any time for help. ‘We give users an introductory tour just to get them started too,’ explains Brown, ‘and we welcome them giving us a ring to ask a few questions or get some assistance.’ It’s just this sort of service that Tradeouts aims to give – endeavouring to offer a personal touch. ‘The danger of internet companies is that they
can appear a bit faceless,’ says Brown, ‘and that’s something we try our best to avoid. In fact, to an extent our service is almost concierge-like!’ This is, of course, the sort of service that
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There’s almost a constant evolution, I suppose. It’s all very exciting
companies of a certain size are ideally placed to offer. With the firm expanding so quickly though, is it something that can continue into the future? ‘There’s almost a constant evolution, I suppose! We’ve launched a lot of new things in the last 12 months – a mobile version of the website, our own awards ceremony and so on – it’s all very exciting.’ So, what does the next five years hold for Tradeouts? In a word, growth. ‘Well I mean it’d be fantastic to continue this rate of growth into the next few years. We won’t be content until we’ve got every dealer in the country on board, basically. That’s the obvious goal.’ In fact, it’s not just the UK that Tradeouts has its eyes on – it’s planning on branching out to other countries too. ‘We’re looking at places like Sweden and France, because they really seem to be crying out for a service like ours. Though Ireland and Australia are at the top of the list – mostly because they’re English-speaking, which is obviously quite helpful when you’re running UK-based operation!’ The firm isn’t just expanding its user base, though – new products and services are on the way too. ‘The idea is that eventually, we won’t just have the Tradeouts site, but a whole suite of products. And of course as we expand and collect more data, the possibility for new services will increase – maybe even our own vehicle valuation service, the sky is the limit really!’
CarDealerMag.co.uk | 59
Our service is perfect - whatever the size of your dealership. At grs, you can choose from a huge range of makes and models all with no fees and all with our unique money back guarantee. Which means however many vehicles you buy, it’s child’s play.
Call 08 or visit www.grs.co.uk
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60 | CarDealerMag.co.uk
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Success Stories
Dynamic remarketing firm which pushes boundaries GRS
W: grs.co.uk T: 08442 255477
G
uinness might famously say ‘Good things come to those who wait’, but arguably, that doesn’t mean businesses can afford to sit still – particularly in the current climate. Regardless of what the economic situation might be, the landscape of almost any market place is a consistently shifting one – and car sales is perhaps one of the best examples of this. Businesses need to evolve to survive – let alone to become successes. GRS is a company that knows all about this. A highly successful remarketing firm, they were founded 18 years ago – but the company has evolved constantly since then. ‘We are a wholesaler – and that’s what we started off as all those years ago,’ managing director Theo Kortland tells us. ‘But we’ve been through some big changes since then.’ While the firm has kept close to the business model that helped it become a success in the first place – buying and selling cars to trade – it’s adapted and evolved considerably since then. ‘In the last five years we’ve seen the market really change,’ says Kortland. ‘There have been big changes in things like the volumes of late plate vehicles, for example, but the biggest thing is use of the internet. ‘The web has become far more prevalent when it comes to sourcing new stock, and I think we’re now at a point where it’s so important that nobody can afford to ignore it.’ With that in mind, GRS developed a state-of-the-art website specifically designed to make buying vehicles online easier for its customers. Using it, buyers can search for vehicles using all of the criteria they’re ever likely to want – manufacturer, model, age, colour, engine size, fuel type and so on – and flick through a comprehensive selection of professional looking photos for each result. ‘We’re very proud of the fact that we have no buyers fees too,’ adds Kortland. ‘We just don’t do business that way.’ Expanding its online offering isn’t the end of
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Theo Kortland GRS’s endeavours, though. In fact, the way they sell the cars themselves is in many ways novel. ‘Another thing that we pride ourselves on is the different options we offer to vendors,’ Kortland explains. ‘We believe that a balanced, multichannel strategy provides businesses with the best opportunity to capitalise on the value of their assets – as well as saving time and money. ‘One of the options we can offer is to act on a vendors’ behalf and use our extensive expertise and network access to sell their de-fleeted vehicles on a fee basis. ‘It’s this agency sales solution that we can really see expanding in the future.’ Also of note is the firm’s other arm – vehicle logistics. ‘We own a dedicated, 36-acre centre in Staffordshire that really is a jewel in the crown of our business!’ Kortland says proudly. Handling vehicle transport, inspection, refurbishment, valeting and more, the facility can hold over 4,500 vehicles, and speeds up the process of getting a vehicle to market considerably. In fact, it’s this integration that helps GRS offer such fast delivery of their stock – promising to deliver cars
It’s important to keep abreast of the way the market move.
often within two working days of cleared payment. So, what does GRS’s MD put the firm’s success down to? A variety of factors. Firstly I like to think we’re not afraid to push the boundaries of our business a little. “Risk drives excellence” is a saying we keep in mind throughout our ventures, and I think it’s safe to say that it’s paid off so far! ‘Secondly, we have the freedom to explore new business possibilities. It’s important to keep abreast of the way the market moves, and if that means adapting then obviously we’d like to be able to do so as quickly as possible. ‘Finally, we try our best to understand the people that we’re actually selling to. We like to think we speak their language, I suppose – and that helps ensure we’re providing the right kind of service.’ And what might the next five years hold for GRS – and indeed the market in general? ‘Well use of the web and mobile technology is undoubtedly going to increase – it’s going to play an even more important role in the marketplace,’ says Kortland. ‘And secondly, I’d imagine that our agency sales model is going to become more popular as time goes on. ‘If I had two predictions those would be it, really – beyond that, the world is our oyster!’
CarDealerMag.co.uk | 61
“Autotrade-mail is quite simply a superb system to use. With the market being quiet, I took up a free trial with Autotrade-mail and it has kept me very busy ever since! Many fellow dealers have been saying they are quiet, I recommend that they try this system. During the Free Trial, I sold 2 Fiat Ducato Vans within the space of an hour and also secured a couple of vehicles too. I’m delighted.” David Chappell, Vans 1st February 2013
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focus on.
Success Stories
Forging those relationships that stand the test of time AUTOTRADE-MAIL
A
utotrade-mail, the UK’s leading online used car trading business, haw demonstrated how keeping your customers as the focus pays off. Over the past five years, the firm has embraced change to grow its business. Autotrade-mail has not been afraid to ask its customers what changes need to be made and this dialogue is surely the secret to their success? ‘Back in 2008 we recognised that with the economy nose-diving, we needed to strengthen our strong points because, as everyone knows, in recessions, only the strongest survive,’ Kevin Watson, Autotrade-mail’s operations director, tells us. ‘We have always valued our members but decided that we would make the customer at the centre of all that we do…and it has worked. ‘We carried out extensive surveys throughout the motor industry and it became very clear to us
W: autotrade-mail.com T: 01243 523000 what our motor industry subscribing professionals required. We then recruited additional resources to ensure we were in a position to deliver. Our customers do not want change for change’s sake, although they do expect us to introduce functionality that they request, therefore we are constantly seeking their feedback to help us understand their needs and respond accordingly.’ This dialogue with their customers has lead to a cherished number plate section, LCV section, and pop up toolbar being introduced on the web platform in 2009. Dealers then went on to request transportation, images for adverts, electronic agreements and AT search in 2010. The company has gone on to expand since then adding the option to pass the vehicle to auction, an escrow facility, quick sale and a bike section. The loyalty reward system introduced last year has also been a great success, adding in special gold
membership privileges to users who have been with the company for more than six months for no extra cost. ‘Business relationships have to be for the long term, a bit like a marriage otherwise the churn can become expensive. There are many ways we encourage loyalty towards our brand and we are quite proud that the average term of membership stands at just under five years,’ Watson explains. ‘Our existing members pay less than any new joiner, unlike the utility or phone companies who do crazy deals to attract new business but insult their existing loyal customers in doing so. We consider this to be bad profit – call us old fashioned but we like to reward loyalty.’ So far this year Autotrade-mail has continued to improve the experience for their users by
‘‘
Business relationships have to be for the long term – a bit like a marriage.
introducing a brand new website with multisource arriving in the very near future. It is clear that providing the best possible service is clearly a priority. ‘Apart from the technical innovations that we bring to our platform, we consider that the staff are the foundations of any company,’ says Watson, ‘but customers are still at the centre, therefore we only employ and recruit individuals who really do understand and care for our customers. ‘Every member of our staff puts the customer at the centre of what we do. Lots of companies think they haven’t got an issue if only one customer complains about a certain aspect. We believe if a customer complains, at least another thirty are thinking about it. Therefore anyone that brings a bit of negativity our way receives the same attention that a room of thirty would receive.’
CarDealerMag.co.uk | 63
Working in partnership with the best in the business That’s why Supagard have been the UK market leaders in paint and fabric protection since 1988. And we’d like to thank our trade partners for their continued support - all those major manufacturers, large and small dealer groups and individual retailers who’ve helped us grow our business again over the last year and made us the success we are today. +HUH¶V WR DQRWKHU \HDUV RI SUR¿ WDEOH SDUWQHUVKLSV
Supagard Limited 19-27 Gavinton Street, Muirend, Glasgow G44 3EF. Tel: 0141 633 5933. Fax: 0141 637 7219
www.supagard.co.uk 64 | CarDealerMag.co.uk
focus on.
Success Stories
New initiatives keep firm’s fortunes shining bright SUPAGARD
C
W: supagard.co.uk T: 01416 335 933
ar Dealer Magazine might be celebrating its fifth birthday this year, but that’s nothing compared to the milestone that paint and fabric protection firm Supagard is about to hit. This year will mark the firm’s 25th in business, and naturally it’s decided to celebrate – not by handing out slices of cake, but saying thanks. ‘It’s really all down to the strength of our relationship with our clients – both dealers and OEMs,’ Supagard’s sales director Nick Horton tells us. ‘Our growth has been inspired by the engagement we’ve got from the OEMs and dealers that represent us, and for that we really have to say a bit of a thank you to everyone that’s worked with us over the last couple of decades!’ Horton puts Supagard’s success down to the relationship benefitting both parties – in other words, it’s in the firm’s interests to make sure clients are as comfortable as possible with the products it supplies. ‘I like to think of it as patting each other on the back, and I think that comes down to how you decide to do business. After all, it’s one thing having a supply agreement, and another entirely having a partnership.’ As humble as Horton is about what the company has achieved, Supagard has a lot to be proud of. Here in 2013, the firm has established its self solidly within the marketplace – not only winning a number of awards, but holding relationships with a considerable number of manufacturers. ‘We’re now approved by 20 different OEMs – which is fantastic,’ says Horton. ‘Last year our market share increased, and this year the number of manufacturers we’re approved by also went up.’ Growth doesn’t come from standing still, though, and Supagard knows this. As well as working hard to bring more business on board, it’s been
busy expanding the range of products available too. ‘We’re still committed to continuous innovation. We spent a lot of last year widening our product portfolio, and that’s something we’re naturally going to continue into the future.’ One such product is Wizemark. New to the market, it continues Supagard’s commitment to vehicle protection – albeit in a slightly different vein than its other products. Rather than protecting a vehicle’s paint or fabric, Wizemark is about protecting vehicles or other highrisk personal property against loss and theft – giving cars and personal items a fingerprint that mean property can be traced back to its original owner. Once enrolled in the scheme, property is permanently marked with a special sticker with a unique identifying code and a contact telephone number. This means that not only can cars – even when cloned – find their way back to the original owners, but traders and dealers get an added layer of protection against being sold vehicles that were taken without their owners’ consent. ‘We’ve done quite a lot of work to look at customer retention too,’ adds Horton, ‘and we’re now making more OEM-branded products – that’s
to say manufacturer-labeled products produced by us – than ever before.’ So, what do the next five years hold for Supagard? ‘Well, we’ll continue to focus on things like delivering great value for money,’ Horton tells us. ‘That comes through the products that we’re actually producing, and the levels of service that we offer with them – continuing to help our clients really get the best out of what’s available. ‘Next is to keep managing those client relationships in the best way that we can – I mean our clients so far have been fantastic, they really have, but we’re always on a bit of a quest for improvement.’ Finally, I think innovation really – we’re always trying bring to market products that the industry is going to have an appetite for, and that’s a goal that’s never going to stop moving really.’ Whatever the next five years bring, we’re sure Supagard is more than up for the challenge – and we’ll certainly be keeping a close eye on them along the way.
CarDealerMag.co.uk | 65
66 | CarDealerMag.co.uk
focus on.
Success Stories
Enter the dragon as firm signs up a famous face WARRANTYWISE
W: warrantywise.co.uk T: 0800 001 4453
G
oing the high-quality route has paid dividends to the success of Warrantywise. The family-run business, set up in 1999, has just had its most successful year ever, proving the market for quality warranties is riper than ever. ‘2012 was our most best year ever for policies and for our revenue,’ Warrantywise’s managing director, Lawrence Whittaker tells us. ‘This has given us the momentum to start this year where we left off.’ The firm has expanded its dealer team in January, and by the end of February the size of the workforce will have doubled. In fact, 2013 is a year where the Lancashire-based business will be worker hard and marketing more heavily than it has ever done before. The business was created to offer to different kind of warranty – one that had no compromises and offered the very best service for both dealers and customers. But in a market that is jam-packed with far cheaper warranties costing around £60, why should dealers and customers consider paying more for a Warrantywise warranty? ‘Cheap warranties are poor quality,’ says Whittaker bluntly. ‘We often find the dealers who work with us are totally focussed on giving the very best service. ‘We work with high-end dealers – such as Amari, Tom Hartley, Graypaul and Sytner – and dealers who love being in the industry and are passionate about it. ‘A quality product equals a quality warranty. As time progresses, more dealers are interested in quality. More dealers are becoming savvy, and dealers are finding they are having to be conscientious. ‘The days of the shady dealer are going – customers won’t stand for it.’ Warrantywise’s offering is comparable to a manufacturer’s. ‘It offers cover for all mechanical and electrical parts, the full retail value of the vehicle. There’s no excess; no betterment; no consequential damage and there are no limits in terms of mileage.
Quentin Willson presents Theo Paphitis with his new warranty
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We are very hard-working. We want to provide the best warranties on the market. In fact, we want to be the very best. ‘No-one offers anything remotely near the quality of this warranty,’ says Whittaker. Another reason for Warrantywise’s success over the past few years has been because of a certain motoring journalist. Former Top Gear and Fifth Gear presenter and consumer champion Quentin Willson has had a large involvement in the Warrantywise’s products – and it has been worth it. ‘Quentin has been working with us for the last five years,’ explains Whittaker. ‘He’s been excellent for us – he’s trustworthy and more importantly cosnumers trust him. Her regularly deals with issues himself – he is hands-on.’ And one new Warrantywise customer and admirer is former Dragon Theo Paphitis. ‘Theo’s warranty had run out on his chrome Maybach and a rival warranty firm wouldn’t give
him a new one,’ explains Whittaker. ‘Quentin heard about it and said he’d offer him one. It’s very telling Theo has one of our warranties – he wants value for money and peace of mind.’ It’s clear to see Warrantywise know about the importance of good marketing. This year they will be pushing hard their quality message to dealers – and 2012’s TV advertising is anything to go by, it is sure to be a hit. So what does Whittaker put Warrantywise’s success down to? ‘Our drive,’ he says confidently. ‘We have worked unstintingly for the last 14 years. We’re a family business and we’re passionate about our company and our products. ‘We are also very hard-working – we want to provide the best warranties on the market. In fact, we want to be the very best.’
CarDealerMag.co.uk | 67
Retargeting ďż˝"Our Retargeting has reinforced our brand, created leads, impacted our sales and had a positive financial impact on SMC." Sonia Hobbs, Marketing Director, SMC, 2012
To find out more, scan here
0845 658 9290 | info@gforces.co.uk | www.gforces.co.uk 68 | CarDealerMag.co.uk
focus on.
Success Stories
Turn to the hard-workers for your digital solutions GFORCES
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W: gforces.co.uk T: 0845 658 9290
Forces can put its success down to one simple factor: Hard work. The digital solutions specialist, started in 1999, is a family affair. It has achieved its current success thanks to hard work by team members. ‘In 1999, Giles Smith, my brother, started the business in our parents’ barn because he just didn’t want to work for anyone else and the internet was starting to get interesting,’ GForces’ commercial director, Tim Smith, tells us. ‘We were a traditional web agency back then, selling websites and search engine optimisation to all sorts of businesses.’ Soon the team of four turned their attention to the automotive sector as cars was a shared passion and sales director Jamie Dixon had experience of selling cars. Since then, the firm has become a go-to company for dealers wishing to have help with their digital needs, earning itself a market-leading position and even a number of Car Dealer Ewards along the way. Today, it has a number of very clever solutions for dealers. ‘Our NetDirector software suite and GForces Data Services (GDS) enable OEMs and automotive retailers to manage their digital dealerships and stock with technology designed to cater to the unique requirements of the sector,’ explains Smith. ‘From web through to showroom and aftersales systems, we can provide next generation Customer Experience Management (CXM) and business
insight at all levels of the automotive retail process via desktop, mobile and tablet devices. ‘Our industry-leading software is complemented by our Total Digital Marketing (TDM) service representing the most integrated of online marketing strategies and incorporating search, video, social media, retargeting and consumer reviews. Integrity, innovation and initiative have established our market leading position.’ Just chatting to Smith, it’s clear the company understands the market and what dealers need to make their businesses become successful. ‘The last two years have seen the top 200 dealer groups really engage with digital,’ says Smith. ‘I think we are witnessing the middle of the technology adoption curve where the early and late majorities are coming to the party. It’s not just about websites anymore – and I think dealers get this. ‘There is and forever will be an enormous amount of work to be done when it comes to technology – it is an industry predicated upon evolution and progress. So, just because websites and digital techniques appear quite advanced compared to 10 years ago, the stuff we are using now will look as dated as Captain Kirk’s trousers in another 10. We are approaching the point where
‘‘
integration and connectivity between the disparate islands of information that are littered throughout a dealership will become essential.’ Last year was a record for GForces and the firm continued to grow in line with the top 50 tech companies in the UK. ‘I won’t say it’s easy to grow in the digital sector because many businesses still don’t, however we are lucky to be in a market that has seen significant growth. The shift from traditional media consumption and advertising spend to the online has benefited us greatly.’ Smith admits GForces is having to work harder and faster to keep ahead because of increasing competition. But GForces’ impressive work ethic is sure to keep them successful. ‘We work very hard as a team,’ says Smith. ‘We innovate continuously. Evolution is embedded in the DNA of our company culture and we don’t view change as a problem, instead we embrace it. ‘Our most important value is integrity. That implies we try our hardest to deliver what we say we can, be as transparent as possible and do everything, every single day in line with our company goals – long-term partnerships and relationships that fuel sustainable growth.’ [CD]
We work very hard as a team. Evolution is embedded in our DNA, and we don’t view change as a problem.
From left to right: Tim Smith; Jamie Dixon; Giles Smith and Neil Smith
CarDealerMag.co.uk | 69
DATA FILE.
Thestatistics n
SMMT Sales Data
Strong car sales leads SMMT to revise forecast upwards Total sales to top 2.057m in 2013 says SMMT, in light of positive January registrations
N
ew car registrations rose 11.5 per cent in January, according to the latest figures from the SMMT. The total number of cars sold in January reached 143,643 units, and the SMMT has declared the month was ‘a positive start to 2013’ – it was the 11th successive monthly rise. The strong results have led to the SMMT revising its 2013 forecast, up 0.6 per cent to 2.057m units. ‘The new car market has started the year confidently with registrations climbing 11.5 per cent in January,’ said Mike Baunton, interim chief executive, SMMT. ‘Lifted by a solid rise in private demand, the new car market posted its 11th successive month of growth with motorists attracted to forecourts by the latest models and competitive deals on offer. ‘Building on a strong performance in 2012, SMMT has increased its market forecast – we anticipate a modest rise over the year, followed by further growth in 2014.’ The SMMT says the growth is set against a ‘challenging backdrop, suggesting market-specific factors are helping to drive demand’ such as ‘delayed purchases being tempted by deals and offers.’
A-CLASS RESULT MERCEDES-BENZ recorded a 7.4 per cent rise in registrations for the month of January, according to SMMT figures. Among the best-selling cars for the German firm was the new A-Class. which now holds a 6.2 per cent share of its segment. The C-Class managed to get into the top 10 best-sellers chart with a 12.8 per cent increase in sales compared with the same period last year. Likewise, the E-Class saloon recorded an even stronger start to the year, claiming the number one spot in its segment. AMG sales were also up an amazing 75 per cent over January 2012. 70 | CarDealerMag.co.uk
Most segments recorded growth in January, with mini, dual-purpose, lower medium and MPV segments all posting double-digit gains, largely thanks to new models being launched in these segments over the past 12 months. Meanwhile sales of petrol cars also grew – in line with growth in smaller cars bought by private customers. Richard Lowe, head of retail and wholesale at Barclays, added: ‘The UK’s love affair with new cars continues into 2013. Despite the snowy forecourts, consumers demand ensured that sales rose for the eleventh month running, and with new model launches and attractive finance deals, we expect to see at least two million cars sold this year.’ ‘The new car market continues to perform well despite wider economic uncertainty,’ said Sue Robinson, director of the RMI National
Franchised Dealers Association (NFDA). ‘Although the NFDA don’t expect to see major growth in the UK new car market during 2013 we do expect it to be stable. We expect the market to be supported by strong manufacturer deals and offers that will encourage consumers to buy. ‘We also anticipate some pent up demand from consumers who have put off buying a new car due to economic conditions but can no longer delay as their car ages with consequent effect on repair and maintenance costs. Many of these customers will look to buy a well priced smaller vehicle that are cheap to maintain and run.’
Ford Fiesta carries on from where it left off THE Ford Fiesta has started the year as it means to go on, claiming the number one spot in the January sales charts. Just over 7,900 Fiestas were sold by dealers during the month, while its bigger brother, the Focus, took second with 5,794 units registered. Vauxhall duo, the Astra and Corsa, took third and fourth places respectively with 5,462 and 5,178 cars units registered, while Nissan’s British-built Qashqai took a very impressive fifth place with 4,280.
Volkswagen’s Golf claimed fifth with 3,335 units, while Peugeot shifted 2,959 208s in January. The Volkswagen Polo finished in ninth after dealers sold 2,885 units of the German supermini, while the Qashqai’s cousin, the Nissan Juke, took ninth with 2,522. The Mercedes-Benz C-Class rounded-out the top ten best-selling cars in January. With 2,356 cars sold in the month, it represented the only premium D-segment car in the standings, beating the normally popular BMW 3 Series.
SMMT sales data Jan/year to date
ABARTH +69.39%
January Marque
Abarth Alfa Romeo Aston Martin Audi Bentley BMW Chevrolet Chrysler Citroen Dacia 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
2013
83 332 100 9,848 80 6,279 698 143 4,759 294 3,351 19,640 3,725 4,863 16 1,207 122 4,473 4,665 537 4 25 2,144 6,750 31 1,660 478 9,477 23 7,714 444 2 2,370 1 2,697 4,036 303 28 105 1,695 6,112 18,253 11,560 2,380 73 63 143,643
% market share
0.06 0.23 0.07 6.86 0.06 4.37 0.49 0.10 3.31 0.20 2.33 13.67 2.59 3.39 0.01 0.84 0.08 3.11 3.25 0.37 0.00 0.02 1.49 4.70 0.02 1.16 0.33 6.60 0.02 5.37 0.31 0.00 1.65 0.00 1.88 2.81 0.21 0.02 0.07 1.18
4.25 12.71 8.05 1.66 0.05 0.04
2012
Figures supplied by SMMT
Year to date (YTD) % market share
2013 % Change
49 538 63 8,563 107 6,249 2,064 98 4,041 0 2,886 20,061 3,263 4,066 33 915 158 4,282 3,492 741 23 36 1,784 6,273 107 1,595 555 6,285 35 7,282 409 23 2,802 4 2,430 3,718 385 43 224 1,185 5,756 12,110 11,589 2,373 64 94 128,853
Chevy -66.18%
0.04 0.42 0.05 6.65 0.08 4.85 1.60 0.08 3.14 0.00 2.24 15.57 2.53 3.16 0.03 0.71 0.12 3.32 2.71 0.58 0.02 0.03 1.38 4.87 0.08 1.24 0.43 4.88 0.03 5.65 0.32 0.02 2.17 0.00 1.89 2.89 0.30 0.03 0.17 0.92
4.47 9.40 8.99 1.84 0.05 0.07
69.39 -38.29 58.73 15.01 -25.23 0.48 -66.18 45.92 17.77 0.00 16.11 -2.10 14.16 19.60 -51.52 31.91 -22.78 4.46 33.59 -27.53 -82.61 -30.56 20.18 7.60 -71.03 4.08 -13.87 50.79 -34.29 5.93 8.56 -91.30 -15.42 -75.00 10.99 8.55 -21.30 -34.88 -53.13 43.04 6.18 50.73 -0.25 0.29 14.06 -32.98 11.48
83 332 100 9,848 80 6,279 698 143 4,759 294 3,351 19,640 3,725 4,863 16 1,207 122 4,473 4,665 537 4 25 2,144 6,750 31 1,660 478 9,477 23 7,714 444 2 2,370 1 2,697 4,036 303 28 105 1,695 6,112 18,253 11,560 2,380 73 63 143,643
%market share
0.06 0.23 0.07 6.86 0.06 4.37 0.49 0.10 3.31 0.20 2.33 13.67 2.59 3.39 0.01 0.84 0.08 3.11 3.25 0.37 0.00 0.02 1.49 4.70 0.02 1.16 0.33 6.60 0.02 5.37 0.31 0.00 1.65 0.00 1.88 2.81 0.21 0.02 0.07 1.18
4.25 12.71 8.05 1.66 0.05 0.04
2012
%market share % Change
49 538 63 8,563 107 6,249 2,064 98 4,041 0 2,886 20,061 3,263 4,066 33 915 158 4,282 3,492 741 23 36 1,784 6,273 107 1,595 555 6,285 35 7,282 409 23 2,802 4 2,430 3,718 385 43 224 1,185 5,756 12,110 11,589 2,373 64 94 128,853
0.04 0.42 0.05 6.65 0.08 4.85 1.60 0.08 3.14 0.00 2.24 15.57 2.53 3.16 0.03 0.71 0.12 3.32 2.71 0.58 0.02 0.03 1.38 4.87 0.08 1.24 0.43 4.88 0.03 5.65 0.32 0.02 2.17 0.00 1.89 2.89 0.30 0.03 0.17 0.92
4.47 9.40 8.99 1.84 0.05 0.07
69.39 -38.29 58.73 15.01 -25.23 0.48 -66.18 45.92 17.77 0.00 16.11 -2.10 14.16 19.60 -51.52 31.91 -22.78 4.46 33.59 -27.53 -82.61 -30.56 20.18 7.60 -71.03 4.08 -13.87 50.79 -34.29 5.93 8.56 -91.30 -15.42 -75.00 10.99 8.55 -21.30 -34.88 -53.13 43.04 6.18 50.73 -0.25 0.29 14.06 -32.98 11.48
SMMT HAS REMOVED DAIHATSU AS THEY registered no new vehicles in 2012. A new entry for 2013 is dacia CarDealerMag.co.uk | 71
data file.
JANUARYSEARCHES
Percentage of total number of searches on TheVanWebsite.co.uk for the month
Ford Transit
Leon Poultney tries the Transit High Roof for size. But is it any good?
Mercedes-Benz Sprinter
4.73%
Ford Transit
4.64%
Ford’s iconic Transit van is often considered the heart that keeps Britain beating. Before it’s replaced, Ford has given it a new range of economical engines and a slight exterior refresh.
What is it?
Ford Ranger
2.99%
This double-cab, high roof version is the dictionary definition of a load-lugger. Not only can it squeeze sofas, wardrobes and all manner of awkward objects in the tall rear, it can also transport five large bodies in the mammoth cab.
Mercedes-Benz Vito
3.71%
What’s under the bonnet? Volkswagen Transporter
3.44%
Volkswagen Caddy
2.3%
What’s the spec like?
Vauxhall Vivaro
1.97% Ford Transit Connect
2.39% Mitsubishi L200
3.13% Renault Trafic
1.97%
A brilliant new 2.2 litre TDCi unit pumps out around 123bhp yet is surprisingly frugal, returning around 37.7mpg on our long motorway journeys. The four wheel drive system offers peace of mind when the weather turns sour and the lightweight chassis means this big lump feels nimble and effortless through fast corners.
tThe seats offer loads of support and the sound system with Aux input is surprisingly beefy. Tinted rear windows, a lockable deposit box and the jazzy sat nav/ infotainment system were all optional extras but well worth it.
What’s it like to drive? Very, very easy. Clambering into a van this size can be daunting at the best of times but the super
responsive engine, slick gearbox and featherlight steering make it feel like a Focus, not a 1.5 tonne beast. Plus points include the assisted steering and smooth deliverance of the engine.
What do the press think of it? What Van? said: ‘Nobody ever got shot for buying a Transit and that is as true today as it was 40-odd years ago.’
What do we think of it? It’s a great machine that’s both versatile and easy to manage. The black paint job and tinted windows on our model made it look like a rock ‘n’ roll tour bus and the shiny alloys were just begging to be kerbed, but if the options lists is left well alone, this big Transit is great value for money.
the knowledge Model: Ford Transit 280 Double Cab High Roof Price: £23,066 (as tested) Engine: 2.2 TDCi Power: 123bhp, 330Nm Max speed: n/a 0-60mph: n/a MPG (comb’d): 37.7 Emissions: 198g/km Residual values (three years): n/a
your sales...
With the #1 website dedicated to vans 72 | CarDealerMag.co.uk
..in association with
DEALFINDER.
Latest finance deals on COMMERCIALS VOLKSWAGEN TRANSPORTER VOLKSWAGEN’S Transporter 2.0-litre TDI is a smart but understated van with masses of space plus being great to drive makes it an ideal van for any business. This is a van with a pedigree, descended from generations of VW transporters, first made more than 50 years ago. The panel van comes with three seats as well as plenty of storage both in the front
and the back. It features sports gearbox ratios and the option of a sports suspension system which makes it a bit more special to drive. Doing 44.8 mpg extra urban and 37.7 mpg combined, the van is also economical to drive. The Transporter is available to lease for only £223.79 with a deposit of £671.37. Go to bit.ly/VWDealMar for more details.
MINI CLUBVAN BMWs latest Mini incarnation is the perfect solution for businesses which doesn’t need as much space as the Transporter or the Vivaro. It comes with optional 11 speakers, a selection of interiors and even a walnut effect facia making it perfect if you want to make a statement. And it’s still a mighty mini with extra storage under the seats to make the most
of the space. Although the Mini has only two seats and is small for a commercial vehicle, being lightweight and running on petrol has the benefit of being really economical. The van is able to achieve 51.4 mpg combined as well as having low emissions. The Mini Clubvan is available to lease with only 48 monthly payments of £183.90 and a deposit of £1,103.40. Go to bit.ly/ ClubvanDealMar for more details.
VAUXHALL VIVARO VAUXHALL call it the van for all reasons, and they’re not wrong. The Vivaro is extremely flexible, featuring six seats in the front and still maintaining plenty of space for loading in the back. This is a van which will take what you throw at it and can adapt to a multitude of jobs without kicking up a fuss. With a maximum loading weight of 1094kg it is capable of much more than anyone would expect looking at its
modest exterior. The 2.0CDTi Sportive Doublecab is available to lease for just £208.99 a month for 48 months with a deposit of £626.97. With a luxury interior upgrade and colour coded bumpers available, it’s a great offer. It also features a ten speaker sound system, luggage securing system in the back and full leather seats. Go bit.ly/VivaroDealMar for more details.
Lawton
COOL CONVERSIONS
Still the brand to beat...
T
he Blue Oval is still the marque to beat, according to the latest SMMT data. Although total sales for the brand were down in 2012, it still outsold second placed Volkswagen by two to one in the sub 3.5 tonne category. Selling more than 62,000 vans in 2012 might sound like an impressive result (and it is), selling more than 70,000 is even better (Ford’s 2011 result) which means 2013 is a hugely important year for Ford in the van market. The upturn would appear to have already started, with January’s figures showing a healthy 25 per cent increase for Ford-badged vans compared to 2012. Therefore the launch of the new Fiestavan is a welcome addition to Ford’s range. Based on the recently revised Fiesta, with basking shark-like maw intact, the LCV variant offers buyers the chance to really go green. All diesel engines come in below the 100g/ km mark, while the ECOnetic version takes things a step further, with 87g/km and 85.6mpg – unheard of in the van sector. It isn’t just the ultimate ecofriendly small van either Ford has ensured that the driver and passenger get cocooned in car-like quality. Plus it also comes with Ford’s new MyKey technology which should provide fleets with some useful additional usage information. Ford’s new product offensive doesn’t end there. After a long lead up, the new Transit Custom is drawing fans and there’s the new Transit waiting in the wings. Such a hive of activity confirms Ford is taking very seriously its position as top dog and has reacted positively to its ageing line-up with a serious injection of clever new models. Does this leave the rest in Ford’s wake? What is clear is that Ford is providing the model line-up template which others need to emulate.
‘Ford is taking its top dog position very seriously.’
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
for your 3-month trial or visit thevanwebsite.co.uk/trial CarDealerMag.co.uk | 73
auctions.
250k cars traded on Autotrade-Mail in 2012 bit.ly/ATMsuccess
Henstock auction stations
Fuelling the debate
D
espite the OFT reporting that it believes the UK petrol market is ‘working well’, are fuel prices still a critical issue for motorists? What impact is this having on the values of cars in the wholesale
sector? It would be misleading to think that the only factor concerning motorists is buying smaller, more economical used cars. Recent Pulse reports from BCA have confirmed there is wide-ranging demand, with record values being achieved for ex-fleet cars last year. Dealer partexchange cars have also established new high points at auction. However, there is no getting away from the view that fuel price and economy are critical issues for drivers and running costs are seen as increasingly important, particularly when considering their next car. Research we conducted last year for the Used Car Market Report showed that UK motorists continue to be cost-conscious with the majority changing the way they drive to maximise their fuel efficiency. In fact, it’s a substantial 70 per cent of car owners expressing some level of concern about their motoring costs. As a result motorists are trying different ways to combat the financial pressures, including driving more efficiently to conserve fuel, avoiding heavy braking and opting for more fuel-efficient models. Looking ahead, nine out of 10 motorists intend to replace their car with a different type of vehicle next time and top of the shopping list is a car with better fuel consumption, followed by lower road tax, a smaller car, best purchase price and lower CO2.
January brings home new record for values Latest report from BCA shows strong first month of the year
L
ow stock levels of used cars has forced their values to climb once again throughout January. British Car Auctions’ latest report shows that, on average, used car values were up 18.1 per cent to £7,137 compared to the same month last year – an increase of £1,097. This is the highest average value recorded in January and the second highest value ever recorded. This value only just lost out to BCA’s highest monthly figure of £7,361 which was recorded in December 2012. This is due to an increased demand for affordable cars, which is driving values upwards and new car sales have also increased by 11.5 per cent year-on-year for January 2013. Lease and dealer part-exchange have also seen their highest average values after recording an increase month-on-month. ‘With stock remaining thin on the ground, buyer demand is focused on the
Who is Simon Henstock?
Simon is UK network operations director for BCA. Visit british-car-auctions.co.uk or Car dealer ads 30/1/13 15:04 call 0845 600 cowboy 6644.
Page 1
No cowboys. Just Just trade trade professionals. professionals.
best quality vehicles and this is driving values up,’ said Simon Henstock, BCA’s UK operations director. ‘In particular, the rise in average prices at the ‘value-for-money’ end of the market continues unabated and this must be a reflection of the current economic conditions. As household budgets remain squeezed, the increased demand from motorists for affordable transport is driving values upwards. ‘Although the headline value declined compared to December largely due to a shift in the mix of cars sold, January essentially delivered more of the same – a shortage of stock allied to decent levels of demand. The shortage stems from the fall in new car sales from 2008 onwards, which means there are simply fewer used cars as a result.’
Good times are a’coming, says Manheim MANHEIM believes the market is showing signs of recovery after celebrating its most successful week’s trading in 92 years. In the week beginning January 7, more than 9,000 vehicles were sold from their 17 UK sites and online sales channels. Their Bristol, Leeds and Colchester sites even broke the 1,000vehicle barrier. The week also saw the number of vehicles which came to auction grow by 60 per cent compared to the same time
in 2012. The firm’s online channels have also seen an improvement with each sale having 30 per cent more online bidders – while overall its website has seen a 53 per cent increase in users logging on. ‘This is a real testament to the strong year which we’ve had at Manheim and the anticipated results we expect over the coming 12 months,’ said Manheim’s John Bailey. ‘We are on track to sell more than 5,000 additional cars in January 2013 than we did in January 2012.’
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
74 | CarDealerMag.co.uk
TRADER TALK
..in association with AutoTrader
Forget dealer, think retailer Dealers need to do their homework and study local retail demand for cars
O
ver the past few months I have been encouraging you to review the way you run your used car operation. I have emphasised the need to have a retail focus; to understand the changes in consumer behaviour; to have a strong online and mobile presence; to use market data; to consider the relevant metrics for success; to take care when dealing with part-exchange vehicles and to review your sourcing and pricing strategy. To meet the challenges of an ever-evolving market, dealers need to start thinking of themselves more as retailers. They need to study local retail demand to understand which cars to buy and need to know the retail price to determine how much to pay for these cars. Those that do use the right market data in the right way will be able to identify what’s hot and what’s not at any given point in any month. The data will include metrics that track consumer supply and demand, measure stock turn and identify the potential gross profit margin. Some of you have contacted me to find out more and to ask for evidence to support my recommendations and I have been more than happy to share this with you. I can now provide more facts and stats to demonstrate how to make significant improvements.
‘Using the right data will identify what’s hot and what’s not.’ There are presently more than 100 dealers undertaking a pilot scheme to substantiate the benefits of unique software that is already transforming the way those dealers think about their used car operations. It does so by taking the uncertainty out of used car retailing. The results are impressive. Sales performance of the pilot dealers is three times that of the market average for dealers with 25+ used vehicles on the forecourt, at 86 cars sold per dealer compared with just 29 over a similar period. Perhaps more importantly, over-age stock was sold at the rate of 14 cars per pilot dealer, compared with the market average of just nine. Pilot dealers also conducted prepurchase appraisals on more than 200 cars each and 84 per cent were rejected because they were not in demand locally. If a car is not desirable it
will not sell. Interestingly, nearly a 1,000 of these undesirable cars are still sitting on the forecourts of local competitors and will likely do so for some time to come. Of the remainder that were appraised as desirable, more than 40 per cent were sold on average 21 days after first being advertised. During the 21 days they were reappraised on average on two occasions to ensure an optimum price position. The pilot dealers are using software that recommends what stock to buy, where to find it, how much to pay for it and how much to sell it for. It also improves dealers’ stock turn and gross profit potential by providing a dynamic online pricing tool that suggests price movements of dealer stock, aligned to real-time local market demand and required margin levels. It is working for them and it could be working for you.
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 | 75
DRIVING VALUES
..in association with Trusted Dealers
At least 10 reasons to be trusted Website set up by and for dealers advertises stock exactly how they want
I
n today’s society, the motoring industry remains a highly competitive and challenging market, so in order to buy and sell cars successfully it pays to
get ahead. Trusteddealers.co.uk was created in 2010 to bring car dealers together and offer them the chance to have equal ownership of an online business – by uniting and seeking ownership of the website, the ‘Trusted Dealers’ can guarantee that their stock is advertised and sold exactly how they want it to be. If you are thinking about joining us, why not read our 10 reasons for becoming a Trusted Dealer then give us a call. We are established and owned by car dealers for car dealers which means that members can avoid the frustration caused by relentless price increases from other classifieds. Trusted Dealers was established with backing from Ken Savage of Perrys, Peter Jones of Lookers, Robert Forrester of Vertu Motors and 32 other dealer groups, to offer an alternative website whose primary purpose was to drive down the cost of used car leads. Trusted Dealers exists to promote franchised dealers who invest in facilities, training and equipment to offer car dealers bespoke and tailored servicing and maintenance repair to the very highest level as well as prepare new and used cars to the highest standard. We offer all of our customers our exclusive 10 Points of Difference price promise – we are the only website which offers our buyers the peace of
76 | CarDealerMag.co.uk
‘We promote dealers who invest in facilities, training and equipment.’ mind that their next new or used car has come from a reputable and reliable source. Easy to set up stock feeds – Trusted Dealers takes stock feeds from all the established aggregators of used car stock and web providers such as GForces, Manheim, Portfolio, Second Bite, Spiders.net, 21st Century Internet, Dennison Automotive, Autoweb, Razor, Motortrak and more. We offer fixed-price car advertising so that all our advertisers pay just £1.05 per car per week, meaning that everyone pays by direct debit with the same commitment. We are exclusively What Car? Approved meaning we have exclusive use of this channel, and we are the only dealers who can claim What Car? Approval on all our website and marketing material. We also have exclusive distribution partnerships with BuyYourCar, CompuCars, and Used Car Expert. We offer transparent reporting which means that our members are able to log in to see the number of calls and email enquiries they have received. Members can also print off maps to see
which cars are the most popular and when they were searched for. Use of our own tracking numbers – as well as reporting, our Trusted Dealer members can use their own tracking number to record track calls in systems such as Mediahawk, Calltracks and BDM. We offer exclusive member participation both through informal channels and direct contact with Trusted Dealers’ lead management and through account management and organised meetings. Members are able to determine the direction of businesses and what new products should be developed for the business. We have a unique campaigning stance – through relationships with the National Franchised Dealers Association (NFDA) and What Car? – Trusted Dealers is in a unique position to promote the benefits of buying a used vehicle through a Trusted Dealer as opposed to elsewhere. In an increasingly transparent and informationrich consumer environment, being a Trusted Dealer presents you with a cost-effective advertising solution and competitive positioning within a busy and challenging market.
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.
..in association with JudgeService
Your business needs reviews! Consumer reviews are making ‘word of mouth’ become ‘word of mouse’
W
hy do you need reviews? Put simply, reviews create sales and grow brands. Consumer reviews harness more power than ever before and ‘word of mouth’ has become ‘word of mouse’. As consumers we rely heavily on social and online reviews to help us with our buying decisions, particularly for infrequent or larger more important purchases such as buying a car. Perhaps unsurprisingly, recent statistics from the European Commission claim that nearly two-thirds of the UK population have researched products/services online within the last three months. So what can reviews do for your business and how exactly do you make the most of them? The JudgeService rules for maximising the potential are: Only allow real ‘genuine’ customers to review. It is now illegal in the UK to show fake reviews and they will end up damaging your name and reputation. Don’t filter out the negative reviews! It is bad practice and customers are wise to it. When exposed to both good and bad reviews customers are 67 per cent more likely to convert. Don’t ask your customers for reviews yourself. By allowing a third party, such as JudgeService, to contact your customers for a review, you will get a much better response rate
‘There is nothing worse than a customer who doesn’t care enough to tell you about problems.’ (up to 4x) while adding credibility. Show your customer feedback and satisfaction scores on your website and it will work wonders for your SEO by providing User Generated Content and giving Google a reason to revisit time after time to look at your frequently changing content. Encourage Social Media sharing. Vastly increase your company’s reach by allowing customers to share their experience on Facebook, Twitter and other social platforms. Genius. According to the ROI Research for Performance statistics you need to be aware that 53 per cent of tweeters recommend companies and/or their products in their tweets and 48 per cent do actually follow through with their intent to purchase! Responding to dissatisfied customers politely and efficiently shows you are a customer-focused business. Another huge advantage of collating customer feedback is the knowledge it delivers. If reviews and feedback are monitored it makes it possible
to be on top of what is going on in all areas of the business. Combined with the additional reporting that JudgeService provides, not only do you learn from your customers but you can continually improve and develop products, services and processes within dealerships. Recently a client of JudgeService was able to reduce their valeting issues and dramatically improve the overall process thanks to feedback from their customers. Since then the issues have dropped to zero and they are now top of the game in that area. There is nothing worse than a customer who doesn’t care enough to let you know what the problem was and wanders off to another supplier. If they have a problem, welcome it and put it right, as many of our clients are doing. A customer or who has been heard are more likely to become advocates, ignore them at your peril! So for genuine business intelligence and a better understanding of your customers, as well as free ideas to improve your business and its profitability, listen to reviews from genuine paying customers.
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 | 77
data file.
James Litton TRADER TALES
Market might not be as rosy as we like to think
B
Suppliers Apprenticeship training Babcock
oosted by strong consumer demand, the market grew at its fastest rate for 11 years with innovative, fuel-efficient cars keeping buyers in showrooms’, the outgoing SMMT chief executive, Paul Everitt, said about the 2012 new
car market. I cannot talk for every dealer, or every manufacturer, but certainly our own new car year was not entirely as positive as Mr. Everitt would have you believe. The continuing acceptance of ‘tariff purchase’, the concept that car buyers are content to view their car purchase as a monthly cost rather than a retail purchase price, drove our own new car finance penetration to more than 75 per cent. Some of these consumers have now been through multiple PCP purchase cycles, so while we keep converting – with the help of manufacturer supported deposits and rates – traditional cash or hire purchase purchasers, there is a captive customer base that continues to grow. This is evidenced by the fact that the growth in new car registrations come from the private sector, rather than from fleet or daily rental registrations. Yet dealers are continuing to go to the wall. I had a call this month from a friend who has worked for the same motor retailer for more than 10 years. What I thought was a solid business with a few niche franchises, closed the doors for the last time last week. I have also heard of a German franchise group (I will not name them for obvious reasons), currently involved in behind closed doors fire sale arrangements, to avoid the embarrassment for this premium manufacturer. It is clear that registrations are not the only key to a strong British car market. While we have seen JLR and Nissan boosting their respective workforces, Honda has slashed their employee numbers. Dealer profitability and cashflow, is as much an issue today as it was in 2008. I am not naive, I understand that car manufacturers do precisely that – manufacture things. Without registrations, they do not make money. However, you need a vibrant, profitable network to deliver them, so please do not lose sight of this.
‘Dealer profitability is as much an issue today as it was in 2008.’
W: babcock.co.uk/ automotivetraining T: 0870 013 0325 E: automotive@babcock.co.uk Info: UK’s leading work-based provider of automotive training. Register your vacancy now.
mini test: RENAULT TWINGO Car dealer says HHHHH updates, the Twingo still feels a bit dated compared to younger rivals such as the Volkswagen Up/ Skoda Citigo/Seat Mii threesome, the Fiat Panda and the Kia Picanto. The interior plastics aren’t the best either. Price: £10,350
W: astonbarclay.net T: 01245 450700 E: info@astonbarclay.net Info: Aston Barclay delivers national coverage through it’s 4 auction centres together with proven online remarketing channels.
The Twingo survived the Renault cull of 2011 and has received a host of updates to keep it fresh. At the forefront of those changes was the new nose with big driving light and latticed grille. But despite the
Auctions
Auctions
Finance
BCA
Newark Motor Auctions
First Response
Auctions Aston Barclay
W: british-car-auctions.co.uk T: 0844 875 3480 E: liveonline@bca-group.com Info: BCA offers more vehicles and more ways to buy them with physical sales, Live Online and Bid Now/Buy Now.
W: newarkmotorauctions.co.uk T: 01636 671167 Info: East Midlands/Lincs largest independent Auctions. Main Agent, Finance and Private entries. Sub £3000 our speciality. Friendly welcome for all.
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Moneybarn
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Info: UK’s leading provider of Showroom Management/CRM systems, Manufacturer/Dealer Data Hubs and now a revolutionary new iPad Sales App.
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Auctions
Automotive data
Insurance
Manheim Remarketing
HPI Speck Check
Think Insurance
W: manheimremarketing.co.uk W: hpi.co.uk T: 0844 856 4545 T: 0845 301 1843 Info: For further information HPI Spec E: thehpiteam@hpi.co.uk Check please call sales support on Info: Get the exact options that W: www.hpi.co.uk 0844 856 4545 or visit the were factory fitted to an individual T: 0845 301 1843 vehicle to help you identify and website. E: thehpiteam@hpi.co.uk retail the best stock.
Info: Get the exact options that were factory fitted to an individual to help you Alfavehicle Romeo identify and retail the best stock. Sturgess Alfa Romeo
Trader directory
Scott Allen 0116 275 8800 scottallen@ sturgesscars.co.uk
W: think-ins.co.uk T: 0844 573 2850 E: enquiries@think-ins.co.uk Info: Trade insurance experts. Road risks and/or combined. Instalments. 10% new client discount. Liabilities. Up to 75% bonus discount.
Fiat Sturgess Fiat
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. 78 | CarDealerMag.co.uk
To have your details included here call (023) 9252 2434 and ask for Suppliers Guide listings
guide Key tracking Keytracker Ltd
W: keytracker.com T: 0121 559 9000 E: sales@keytracker.com Info: No more lost keys. Best prices complete systems from just 10p per key! Seals, pegs & hangers from stock.
Online marketing iVendi
W: ivendi.com T: 0845 226 0503 E: info@ivendi.com Info: Award winning motor finance calculators and highly qualified lead generation. See why over 600 dealers now work with us.
Online trading Autotrade-mail.com
W: Autotrade-mail.com T: 01243 523000 E: sales@autotrade-mail.com Info: UK’s leading online real time used-car trading network. The original and the best. Call for your free two-week trial.
If you’re looking for a motor trade supplier you can find the details of selected companies here
FEATURED LISTING: Car dealer club FREE LEGAL ADVICE with CAR DEALER CLUB gives dealers of all sizes access to free legal advice from our motor trade lawyers, worth £195. Members get a copy of Car Dealer magazine every month as well as access to a host of discounts from motor trade suppliers – all for a paltry £39.99 annual subscription! This offer is only available to new subscribers, so if you haven’t renewed your subscription then you need to do so to gain access
Recruitment Motor Industry Recruitment
W: mirec.co.uk T: 0845 257 9224 E: info@mirec.co.uk Info: An award-winning, specialist Motor Recruitment Consultancy who will not headhunt from you or resolicit candidates they place with you.
to this very special offer. Signing up is simple. Type CarDealerClub.com into a web browser to be taken straight to the section on our website where you can find out more and join up! Alternatively you can send
us a cheque for £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.
Valeting services
Warranties
Web design
National Car Cleaning Company
AutoProtect (MBI) Limited
GForces
W: autoprotect.net T: 0871 384 1167 E: sales@autoprotect.net Info: Providers of warranty, GAP and other sources of additional dealer income. Backed by dedicated support teams and IT systems.
W: gforces.co.uk T: 0845 658 9290 E: info@gforces.co.uk Info: Multi award winning car dealer website design and digital marketing. Find out why we keep winning awards.
W: nationalcarclean.co.uk T: 01268 565050 E: sales@nationalcarclean.co.uk Info: With 30 years of excellence in vehicle valeting, we have an unparalleled reputation for quality on-site vehicle preparation.
Paint protection
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These Listings Work
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W: carcom.co.uk T: 0800 019 1299 E: enquiries@carcom.co.uk Info: Carcom is the UK’s new dealer-dedicated online vehicle remarketing service which links buyers and sellers of used vehicles across the UK.
W: globaloasys.com T: 0203 322 2090 E: sales@globaloasys.com Info: The best and most automated stock sourcing solution that dealers can get - with hundreds of vehicles available right now.
W: hpi.co.uk T: 0845 301 1812 E: thehpiteam@hpi.co.uk Info: We are the UK’s leading provenance check provider with 75 years experience. Get peace of mind with HPI Check.
W: www.autosonshow.tv T: 0800 644 6894 E: info@autosonshow.tv Info: Sell more cars with our multi-award-winning video solution. On-demand video, plus live video streaming of your stock.
W: carcareplan.co.uk T: 0844 573 7591 E: salesinfo@carcareplan.co.uk Info: Choose the market leading supplier of vehicle warranty and GAP insurance – 1m customers every year can’t be wrong!
W: wmsgroupuk.com T: 0844 477 4909 E: sales@wmsgroupuk.com Info: Experience, expertise, leadership and innovation. The nation’s favourite. The dealer’s preferred partner.
Hyundai
Jaguar
Land Rover
Nissan
Sturgess Hyundai
Sturgess Jaguar
Sturgess Land Rover
Nissan
Perry Beaver perrybeaver@sturgess cars.co.uk 0116 2541717
Chris Allen chrisallen@sturgess jaguar.co.uk 0116 282 6868
Getting your company featured here is more affordable than you imagine. Here’s why
Mike Mongiello mikemongiello@sturgess cars.co.uk 0116 282 6969
Sturgess Nissan Perry Beaver 0116 254 1717 perrybeaver@sturgesscars.co.uk
W: Your website address T: 023 9252 2434 (that’s us!) E: adverts@cardealermag.co.uk Info: The Suppliers Guide helps dealers find the companies they need to help them improve their business. Make sure you’re here.
Carfleet Wholesale Ltd
W: carfleetwholesale.co.uk T: 0151 356 1200 E: sales@carfleetwholesale.co.uk Info: We are the number one supplier to the trade, providing the cheapest nearly new vehicles in the country.
Volvo Sturgess Volvo
Scott Allen 0116 275 8800 scottallen@ sturgesscars.co.uk
Prices for 12-month listings: £29 per month. Single months are £49 per month
Prices exclude VAT. Adverts are invoiced after it has been included in the magazine. 12-month bookings are payable up-front.
CarDealerMag.co.uk | 79
the fleet.
Welcome to the fleet...
Ford B-Max James Baggott falls in love with the Blue Oval’s latest model
I
could start this with a cliché about how “good things coming in small packages”. Or perhaps something about our new long termer being able to “punch above its weight”. Or even go as far as talking about “David versus Goliath”. But I won’t, because that would all just be a little bit rubbish. Instead, I’m going to wax lyrical for about the next seven to eight paragraphs about what is, quite simply, one of the best cars we’ve had on test for months. Years, even. It’s quite the claim, I know, but this dinky little Ford B-Max with its equally miniscule 1.0-litre Ecoboost engine, possibly from a very refined lawnmower, is one car that really does punch above its... hang on, nearly got caught out there. Anyway, I’ve forgotten my manners: Let me introduce you to the newest member of our fleet – EK62 OZA. A diminutive Ford B-Max in Postman Pat van red. But forget the dog appendage colour scheme for a moment, because it’s that tiny powerplant that really needs some attention. The awardwinning lump – built in Britain no less – is small enough to fit on a piece of A4 paper. It’s got just three cylinders, yet manages to produce an impressive 117bhp and 200Nm of torque. It’s enough to see it hit 60mph in 11.2 seconds, not far off what my 1.6-litre E-reg Fiesta XR2 does it in. I’ve taken to playing a little game with passengers and asking them – after a few rally stage traffic light getaways – to have a stab at how many cubic centimetres are hauling us along the road. One said 2.0-litre diesel, another 1.6-litre turbo and most settle for a 1.4. Ok, so the first one came from my mum who’s about as mechanically minded as a shrew and thinks her Ford Ka is a hybrid because it’s got a 12v socket, but still, pretty impressive that no one guessed our baby B-Max was lacking centimetres under the bonnet. I love the thrum of the little three pot and it’s by far and away one of the best 1.0-litre units out there. It’s led to some impressive fuel economy too. Ok, I’ve been averaging about 45mpg (the combined official figure is 57.7mpg), but then I have been a little lead footed. Ok, maybe it’s been 80 | CarDealerMag.co.uk
less of the “little” and more of the “lottle”, but still I’m happy with its allergy to Shell. It has also impressed a few football mates. Despite my grey hairs and “granddad” nickname, I have a bit of street cred “wiv da kidz”, because of my constant car swapping. One even asked if I was a car thief, which sort of says more about my footballing colleagues than me. Anyway, even they were impressed when I rocked up in the B-Max. “That’s that B-Max you can dive through innit,” said one. Shows TV advertising still has some life left in it... and that it’s possibly being targeted at the wrong audience. Anyway, enough of me prattling on, down to some hard-and-fast likes and loathes. I’m loving the stereo system, which is fiddly at first – the dash looks like the designer sneezed while placing buttons – but you get used to it, and the Sync system is brilliant. Music from my phone streams perfectly, the Bluetooth hands-free kit is superb and even
the knowledge Model: Ford B-Max Titanium Price: £18,720 (as tested) Engine: 1.0-litre EcoBoost, three cylinder Power: 117bhp, 200Nm Max speed: 117mph 0-60mph: 11.2s Emissions: 139g/km Mileage: 1,012 Costs this month: £0
This month’s highlight: Almost as fast as another red peril – a Ford Fiesta XR2 from 1987.
directions from Google Maps running on my mobile are relayed through the speakers. Useful. The interior is spot on too. The driving position is comfortable, the seats supportive, and those sliding rear doors are a stroke of genius.
longtermers
Peugeot 208 Leon Poultney is handed the keys to our new French fancy and has a great first date
A
Ok, Ford weren’t the first to think of them, but I’m sure glad they borrowed the idea (answers on a postcard as to which was the first car maker to use them). The doors make loading mini Baggott into the back easier, even when she’s doing her best impression of an octopus about to be boiled in a pan. And the boot is a decent size too. Complaints? Well, so far they’re pretty nonexistent – and that’s not because I’m trying to keep Ford happy because they’ve lent us a car. It’s because there’s very few things for me – and if you know me, you’ll know this is unusual – to have a grumble about. Ok, if I’m pushed it’s the lack of a button on the doors to lock them when the keyless go fob is in your pocket. Hardly likely to lead to divorce proceedings is it? I’m sure as time goes on – and the honeymoon period ebbs away – more moans will surface, but for now I can’t think of a better compact family car. It really is a case of David versus... oh bum, I’m at it again!
new appointment at any job usually requires some kind of initiation task. Whether it’s the jovial request to post a letter to Mr Seymour Butts or - like in one of my previous roles persuaded to go to my first Christmas party wearing a bright pink wig. But the first task handed to me on my appointment as news editor at Blackball Media far exceeded any of the aforementioned tests of willpower as I was handed the keys to our latest long-termer, the Peugeot 208 and forced to pilot the little Pug from the deepest bowels of Gosport on the south coast (where I work) to the even deeper bowels of Essex (where I live, for now)... during the worst snowstorms this country has seen in years. Now, the little 1.2-litre VTI city car looked great in its Oasis Blue colour scheme but the 82bhp on tap and front-wheel-drive layout became more and more unappealing as the deluge of frozen precipitation continued to fall from the sky. ‘Please let the trains be running,’ I prayed as I continued to watch the white stuff consume everything outside of the warm office. Of course the trains weren’t running, so it was the Peugeot or a very long, very cold walk home. The cheap plastics of previous models have been replaced with soft touch material where possible and the piano black highlights are very pleasing to the eye. The seats are extremely comfortable and the space in front and rear is surprising. It’s such a shame, then, that the infotainment system was so damn fiddly.
the knowledge Model: Peugeot 208 Active Vti 1.2 Price: £14,550 (as tested) Engine: 1.2-litre, petrol Power: 82bhp, 118Nm Max speed: 109mph 0-60mph: 13.8s MPG: 65.7 (combined) Emissions: 104g/km Mileage this month: 600 Costs this month: £0
This month’s highlight: Oasis Blue really is a lovely colour. Plugging in postcodes using the touch screen display was infuriating and as the mercury continued to drop, the unit seemed to misbehave more. The drive, on the other hand, was a lot better. The steering sharp and the gearbox super-slick. The 1.2 engine pulled well but it doesn’t half make a racket. We’re hoping the powerplant becomes more refined as the miles tick over. I was impressed with the engine at cruising speed; it made less of a commotion when settled at a few thousand rpm. Wind noise was almost non-existent and there were no rattles or bangs from outside the cabin. My one major gripe was the performance of the heaters. I almost suffered double pneumonia during the first 15 minutes of every chilly journey as I waited for the pathetic blowers to defrost my kidneys. We will have more to report in a few weeks when it warms up a bit and we can drive the car without the risk of internal organs freezing.
CarDealerMag.co.uk | 81
the fleet.
Welcome to the fleet...
Nissan X-Trail
Mal Hay finds our new fully-loaded Nissan X-Trail to be just the ticket for wintery weather
T
here’s no doubt our latest long-termer – the Nissan X-Trail 2.0dCi Tekna – has been thrown in at the deep end. Since arriving at Car Dealer Towers in mid November it’s had to contend with everything from howling gales and flash flooding to sub-zero temperatures and snow. Lots and lots of snow! Reassuringly though, the no-nonsense SUV has tackled the worst of Britain’s winter weather with the sure-footed confidence of an Eskimo who’s just found two tennis rackets. And that’s made Nissan’s family friendly 4x4 a firm favourite with the Car Dealer team, who now make a mad scramble for the keys at the faintest suggestion of a cloud. Spend even a short time behind the wheel and it’s easy to see why. On the road, the big X-Trail handles effortlessly and belies its hefty dimensions and rugged looks with a performance that’s as mild-mannered as Cliff Richard in his Christmas onesie. 82 | CarDealerMag.co.uk
But take this usually timid creature beyond the Tarmac and it rips off its metaphorical shirt, pulls its pants on over its trousers and tackles all obstacles with the gusto of Bruce Willis taking on the Taliban. Nissan’s clever All-Mode 4x4-i system, coupled with an impressive 173 PS 2.0-litre turbo diesel powerplant and a serious amount of ground clearance, leave you in no doubt this is more than just an accessory for the school run mum. Were mum to use it though, she’d find herself with plenty of pennies left to up the kids’ pocket money at the end of the week. We’ve been clocking up a very healthy 36mpg on average. Let’s not pretend though that the X-Trail’s
popularity among Car Dealer’s band of motoring purists is all about the way it drives. For this model has a list of creature comforts, smart features and nice touches longer than Mr Tickle’s left arm. Leather seats, a Nissan Connect five-inch touch-screen navigation system, 360-degree bird view camera parking system, electric panoramic sunroof and a rocking Bose audio system with nine speakers make this model more homely than the average three-bedroom semi. And so, with winter on its way out and the daffodils beginning to appear, the X-Trail is likely to continue to prove a popular choice in this office in the weeks and months ahead.
longtermers
A sad farewell...
Mitsubishi Outlander Dave Brown is the final member of the Car Dealer team to put the capable 4x4 to the test
I
t was almost time to say goodbye to our long-term Outlander. After five months on loan to the Car Dealer gang, it was deadline day and the drivers from Mitsubishi were on their way to collect it. It’s fair to say we did a pretty good job of putting the car through its paces over the last few months of 2012. Looking back, perhaps the one aspect of the vehicle we didn’t quite put to the test was its four-wheel-drive capability. But there’s no doubt it swallowed up a fair few miles as the Car Dealer writers made the most of its time with us. I was the one who had the pleasure of its company in the two or three weeks leading up to its departure and as usual I had a fair bit of motorway munching to get through. Over Christmas, the car was tasked with delivering people and presents to many corners of the UK and it did so with aplomb. In treacherous conditions, and in often appalling traffic conditions, the car didn’t miss a beat. Norwich? No problem. Birmingham? Bring it on. Liverpool? Let’s go. Mitsubishi’s Outlander even made possibly my least favourite stretch of motorway in the UK bearable (the M6 through the West Midlands since you ask) . . . but sadly couldn’t protect us from the impact of the many appalling and dangerous potholes that are blighting the UK’s roads at the moment. In fact the experience of the three weeks
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: 11,470 Costs this month: £0
This month’s highlight: Delivering gifts and grandchildren to various locations around the UK over Christmas. on the road did nothing to change my view that the Outlander was capable, comfortable and classy. However, since the car has left us, I have changed my opinion – and maybe I’m thinking the car isn’t all it’s cracked up to be. Perhaps it could be a little more refined, more economical, cleverer and easier on the eye. In fact I know it could ... because that better, more up-to-date car actually exists. And at Car Dealer we’re lucky enough to have one. In case you hadn’t guessed by now, I refer to the new Outlander... the launch of which was held in the middle of January. What’s our verdict on the updated model? We’ll let you know in the next edition of Car Dealer.
the knowledge Model: Nissan X-Trail 2.0dCi 173 Tekna Price: £29,590 Engine: 2.0-litre, diesel Power: 171bhp, 360Nm Max speed: 124mph 0-60mph: 9.8s Emissions: 168g/km Mileage: 13,200 Costs this month: £0
This month’s highlight: The X-Trail’s performance is as mild-mannered as Cliff Richard CarDealerMag.co.uk | 83
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WORKSHOPS.
Get voting for the best garage Motor Codes’ search for the best garages in Britain begins
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otor Codes is on the hunt for Britain’s best garages – asking the public to rate their favourite service centres. Motor Codes will be highlighting the public’s favourite garages based on drivers’ feedback. Customers can vote from this month, and give their opinions on who they trust to provide quality work, excellent customer service and value for money. Any Motor Codes/ OFT approved garage is eligible for voting. Motor Codes’s managing director, Chris Mason, said: ‘The forwardthinking businesses make themselves as transparent as possible. They
engage with their customers, value feedback and recognise that online reputation is hugely valuable to people searching for a reputable business. Garage of the Year uses online feedback to create a record of the good guys and, through voting in this competition, motorists are effectively helping fellow car owners know where to turn for a good garage experience.’ As an added incentive, all voters are entered into a prize draw to win a pair of tickets to the Dunlop MSA British Touring Car Championship finale at Brand’s Hatch– with ‘full hospitality’ provided by Porsche Cars GB. Voting closes on March 3. Customers can vote at www.motorcodes.co.uk.
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SHARES.
..in association with ASE-global.com
Strong start to 2013 with leading players showing gains Healthy new car market is paying dividends so far for UK motor retailers
PRESTIGE SALES POWER AHEAD
W
ith the market currently set fair, it is unsurprising to see most of the motor groups posting share price gains during the first few weeks of 2013. The registration numbers from the SMMT beat early year forecasts and all of the pronouncements have seen the retailers either hitting or beating expectations. The second half of 2012 has undoubtedly produced some very good profits for most and this is being reflected in the earnings estimates. Registration forecasts have been upgraded for 2013 which points to a further profit opportunity for the retailers. Whilst there have been some industry-wide challenges in agreeing manufacturer targets, the dealers will ultimately make more money from selling more cars and the current push of supply into the UK market by the OEM’s provides profit opportunities for the best retailers in 2013. During January a major announcement came
‘The current trends are likely to continue as we head into March.’ from HR Owen which issued a trading update relating to their 2012 performance. They reported results ahead of market expectations, buoyed by a robust second half performance. This saw the shares regain losses during November rising more than nine per cent during the month (see the report, right). Vertu continued on their acquisition trail during January, picking up sites in Keighley and Carlisle further extending the company’s Vauxhall presence. This had little effect on the share price which, while showing slight peaks, ended January virtually where it entered it. Despite no real announcements, Pendragon had a good month gaining more than 16 per cent. This is a continuation of the recent trend with the share now up nearly 90 per cent on a year ago. Cambria also posted good share price gains during January gaining just under 14 per cent in the month, reversing the majority of the losses during November. The company published accounts and held
LUXURY car retailer HR Owen has said it is expecting positive results in the wake of strong 2012 sales. In a trading update published in January, the firm said it is expecting the results for the year ending December 31, 2012 to be ‘ahead of market expectations’. Healthy customer demand for cars from its exotic and luxury franchises have fuelled the positive expectations. The firm said its Ferrari and Lamborghini businesses have performed particularly well, while sales of Rolls-Royce and Bentley helped close a good year. HR Owen said 2013 may see ‘a less pronounced first half with the second half contributing a higher proportion of the full year result than has historically been seen’ because of fewer new car releases. ‘The implementation of our strategy for growth is progressing well and we look forward to the roll-out of further business opportunities during the coming year,’ the trading update went on to say. Preliminary results will be issued in March. Meanwhile, rival prestige car retailer Sytner
its AGM with all resolutions passed. Looking at the accounts, Cambria is likely to get credit for its lack of debt and cash pile, however it will be interesting to see whether future acquisitions see the company breaking its current policy of not paying goodwill. Lookers also posted a nice share price gain during January, showing a seven per cent rise on the back of some positive broker research notes confirming that the company is on track to meet market expectations in the year to March. Inchcape posted a similar share price gain to
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 86 | CarDealerMag.co.uk
Group has exceeded £3bn of annual sales for the first time. Reports in the Leicester Mercury suggest that the group, now 45 years old, reached the milestone last year – generating £66m of pretax profit, up a third on the year before. Sytner saw its sales rise by more than 15 per cent across the year, with more upmarket cars said to be the driving force behind the figures. The company has a wide variety of prestige manufacturers under its wing – including Bentley, Ferrari, Rolls-Royce and Maserati – but it’s believed that cheaper-to-run premium models like Audi’s A1 and BMW’s 1 Series are helping to bolster the figures. ‘Customers are buying smaller, more efficient cars, but they’re still going for prestige cars rather than run-of-the-mill ones,’ said Sytner’s managing director Gerard Nieuwenhuys. He also added that the firm’s recent performance had been in line with the 11.5 per cent rise in UK car registrations last month. ‘We have been experiencing a positive start to the new year,’ he said.
Lookers, continuing the steady growth in its share price. The only slight faller on the month was Caffyns, which dropped two per cent, however the share remains very thinly traded. The current trends are likely to continue as we head into March where we will get an indication of whether these companies have indeed met their earnings expectations for the past year, and see how they faired in the key registration month. Let’s hope it’s not unlucky for some.
Only need apply! 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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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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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.
Narrowing down your search.
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This year we’ve already hit the ground running...
We’ve placed outstanding candidates which have made a significant impact to our Clients’ business At JGA we constantly have exceptional candidates registering with us, ready to take the next step in their career progression. Contact us today, speak to our Automotive professionals and see how we can help drive your business forward.
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data fiLe.
E
Don’t moan about a supplier who falls short of the mark
ach month the main topic of conversation between my wife and I follows a similar pattern – she uses me as a sounding board to vent her frustrations about the wholesaler she uses to supply her business. Most of the time I nod and agree with her statements, as opposing what she is saying would be an undesirable response, in her opinion, and obviously I am bound to be wrong as after all ‘what do I know?’, particularly when I work in a completely different industry! When I choose to have an input, I primarily ask the same question time and time again (which I will come to later) in order to put the comments into some kind of perspective. But often no action is taken and the same conversation returns the following month and the one after that and... Terms such as unreliable; not getting what is asked for or expected; not listening; lack of attention to detail and poor service generally are all used best to describe this particular supplier. I appreciate that as business people we are entitled to moan and groan sometimes about the people we transact with as, on occasion, the service that you receive may fall below what you deem an acceptable level. However, now really is the time to start questioning these ‘believed’ business partnerships as opposed to accepting sub-standard work any longer. So the question I ask is: Why deal with any company which causes you obstacles to completing business when there are plenty of competitors in the marketplace which are able and ready to step up to the mark? First Response Finance has been taking huge strides
Jonathan
Such TIME IS MONEY
over the past few years to slicken the service we provide to our customers (car dealers), so the sale of the car becomes easier and easier as opposed to adding hurdles. Part of these improvements have involved removing the ability for brokers to send us business, as experience has taught us that adding a ‘middle person’ to the equation only hinders our ability to make it easier. Issues identified include the customer being confused over who they were dealing with, and longer decision times to the supplying dealer. The latter sometimes occured when the broker was waiting for decisions from a panel of lenders creating subsequently longer processing times on the whole.
‘Why deal with a company which creates obstacles?’ We have also looked at how we process business to see where we are adding to dealer difficulties, and made some key process changes to improve our service levels and assist with selling cars more efficiently. An there is no better feedback about the marketplace and our service than car dealers and dealer groups regularly contacting us (as opposed to one of my salespeople prospecting them!) asking how to set up with us and start sending business. Make sure you don’t fall into a monthly moan about your business partners and do something about it. Give First Response Finance the opportunity to help you sell more cars.
Who is Jonathan Such? Such is regional sales manager for First Response Finance. You can contact him on 07917 781608 or email jons@frfl.co.uk
Coming next month
If there’s something you think we should be covering get in touch. Our details are on page three
90 | CarDealerMag.co.uk
GENEVA MOTOR SHOW
PLUS: TOOLS OF THE TRADE FEATURE
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